Document:

Exhibit 10.1

SALE
AND PURCHASE AGREEMENT

This Sale and Purchase Agreement (this “Agreement”)
is entered into as of February 8, 2007 (the “Execution Date”), by
and between NXP B.V., a limited liability company organized under the laws of
The Netherlands (“Parent Buyer”), NXP Semiconductors France SAS, a
company incorporated under the laws of France (“Subsidiary Buyer”),
Silicon Laboratories Inc., a Delaware corporation (“Parent Seller”) and
Silicon Laboratories International Pte. Ltd., a private limited company
organized under the laws of Singapore (“Subsidiary Seller”).  Each of Parent Buyer and Subsidiary Buyer are
sometimes referred to in this Agreement collectively as “Buyer” and each
of Parent Seller and Subsidiary Seller are sometimes referred to in this
Agreement collectively as “Seller.”

AGREEMENT

In consideration of the respective covenants and
promises contained herein and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto agree
as follows:

ARTICLE I.

DEFINITIONS

1.1           Defined Terms.  As used herein, the terms below shall have
the following meanings.  Any of such
terms, unless the context otherwise requires, may be used in the singular or
plural, depending upon the reference.

“Action” shall mean any action, claim, suit,
litigation, proceeding, mediation, arbitration, governmental audit, criminal
prosecution or hearing, in each case, before any Governmental Authority or
arbitration tribunal or any inquiry or investigation by any Governmental
Authority.

“Ancillary Agreements” shall mean the
Intellectual Property License Agreement, the Transition Services Agreement, the
Escrow Agreement, the French Local Sale Agreement, the Bill of Sale, the
Assignment and Assumption Agreement and the Intellectual Property Assignment
Agreement.

“Assets” shall mean all of the assets, tangible
and intangible, as set forth below, without duplication:

(a)           all of Seller’s and its Subsidiaries’
rights under all of the Contracts, including those listed on Schedule 1.1(a)
(collectively, the “Assumed Contracts”);

(b)           all Equipment primarily used in the
Business, including the Equipment listed on Schedule 1.1(b);

(c)           all Inventory;

(d)           all Books and Records;

(e)           all Intellectual Property Rights that
are (i) listed on Schedule 1.1(e) or (ii) other than Patents and
Trademarks, owned by Seller or its Subsidiaries (or licensed by any of them to
extent transferable hereunder without additional monetary liability to Seller
or its Subsidiaries) and exclusively used in the Business (together, the “Transferred
Business IPR”);

(f)            all of the capital stock of the
California Subsidiary (for clarity, except as set forth in Section 10.18, the
California Subsidiary shall retain all of its assets);

(g)           all of the capital stock of the French
Subsidiary (for clarity, except as set forth in Section 10.18, the French
Subsidiary shall retain all of its assets);

(h)           Seller’s and Seller’s Subsidiaries’
rights under the Facility Leases, together with all fixtures and improvements
now or subsequently located thereon, and all rights, privileges and easements
which are appurtenant thereto;

(i)            all assets of the French Subsidiary
Plans; and

(j)            Seller’s and Seller’s Subsidiaries’
right to bring and control any Action in law or equity against third parties
for the infringement, misappropriation, violation or other damage or injury to
(or breach of or default under) the foregoing prior to the Closing Date
(whether standing alone or in combination with an Action for post-Closing
injuries), provided that Seller shall be reimbursed for any monetary recovery
relating to the time period on or prior to the Closing Date.

Notwithstanding the foregoing, in no event shall the
term Assets include any Excluded Assets.

“Assumed Liabilities” shall mean only the following
Liabilities of Seller and its Subsidiaries:

(a)           all Liabilities arising on or after
the Closing Date under the Assumed Contracts (but not including any Liability
for any Default under any Assumed Contract occurring prior to the Closing
Date);

(b)           all Liabilities for any Taxes
attributable to the Business for Post-Closing Tax Periods;

(c)           all Liabilities arising after the
Closing Date with respect to the Rehired Employees;

(d)           all Liabilities (whether arising
prior to, on, or after the Closing Date) with respect to Open Incoming POs.

(e)           all Liabilities (whether arising
prior to, on, or after the Closing Date) with respect to Open Outgoing POs.

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(f)            all Liabilities for Product warranty
claims and Product liability claims to the extent such Liabilities result from
operation of the Business after the Closing Date;

(g)           all Liabilities for Product warranty
claims to the extent such Liabilities (i) result from operation of the Business
on or prior to the Closing Date and (ii) do not exceed $25,000 with respect to
any individual claim or series of related claims;

(h)           all Liabilities of Transferred
Subsidiaries, but excluding all liabilities for any Taxes attributable to the
Transferred Subsidiaries for Pre-Closing Tax Periods (subject to the
indemnification provisions set forth in Section 9.3);

(i)            all Liabilities to Rehired Employees
for accrued but unused vacation time;

(j)            all Liabilities of the French
Subsidiary Plans;

(k)           all Liabilities to the extent arising
out of, relating to or in connection with any Action or threatened Action
(including a cease and desist letter, request for an investigation or offer to
license) involving or relating to the Business or the Assets arising out of the
conduct, operations or ownership of the Business or the Assets after the
Closing Date;

(l)            all Liabilities for Products sold
after the Closing Date; and

(m)          all Liabilities to distributors with
respect to credit memos to be issued after the Closing Date with respect to
earned and unearned price protection and ship and debits obligations.

“Books and Records” shall means Seller’s:  (a)  current product, business and
marketing plans and promotional literature for the Products and the Projects,
(b)  books, records (including customer, supplier, employee and purchasing
records), lists (including customer, supplier and distributor lists), financial
data, files and reports for the six months prior to the Closing Date for the
Products and the Projects, and (c) current product and design manuals,
plans, drawings, technical manuals, operating records and all other work
product (in any media) for the Products and the Projects.

“Business” means all activities by Seller and
its Subsidiaries, including but not limited to research, development,
manufacturing, marketing, and sales, occurring at any time on or prior to the
Closing Date in connection with: (i) CMOS power amplifier integrated circuits,
(ii) CMOS transceiver integrated circuits, (iii) CMOS baseband integrated
circuits, (iv) baseband software, and/or (v) the integration of one or more of
the integrated circuits and software listed in (i) to (iv) above into
integrated circuits or systems, in each case of (i) to (v) where such circuit,
integrated circuit, system or software is used to receive and/or transmit
signals complying with one or more of the cellular communications standards
GSM, GPRS, EDGE, UMTS (including WCDMA), CDMA and their derivatives, extensions
and successors.  For purpose of clarity,
the term Business does not include any activities by Seller and its
Subsidiaries in connection with the Retained Products of Seller.

“Business Day” means any day other than a
Saturday, a Sunday or a day on which banks in New York, New York are required
to be closed.

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“Business Employee” shall mean those Business
Personnel who are employees of Seller or any of its Subsidiaries listed on
Schedule 1.1(g).

“Business Personnel” shall mean those employees
and independent contractors of Seller listed on Schedule 1.1(g).

“Cash” shall mean cash, cash equivalents and
short-term investments (as defined under GAAP).

“Code” shall mean the Internal Revenue Code of
1986, as amended, and the rules and regulations thereunder.

“Confidentiality Agreement” shall mean that
certain letter agreement, dated as of October 25, 2006, by and between Buyer
and Seller.

“Contract” shall mean any agreement or contract
to which Seller is a party or is bound and which primarily relates to the
Assets or the Business.

“Court Order” shall mean any judgment,
decision, consent decree, stipulation, injunction, ruling, writ or order of any
foreign, federal, state or local Governmental Authority.

“Default” shall mean (a) a material breach
of or material default under any Contract, or (b) the occurrence of an
event that with the passage of time or the giving of notice or both would constitute
a material breach of or material default under any Contract.

“Encumbrances” shall mean any mortgage, pledge,
lien, restriction, hypothecation, charge or other security interest other than
(a) for Taxes not yet due and payable, (b) for purchase money, securing rental
payments, or otherwise arising in the ordinary course of business and not
incurred in connection with the borrowing of money; or (c) arising as a result
of entering into this Agreement.

“Environmental Claim” shall mean any written or
oral notice, claim, demand, order, action, cause of action, suit, complaint,
proceeding, investigation or notice or other communication by any Person
alleging any violation of, or any actual or potential liability (including
actual or potential liability for investigatory costs, cleanup costs,
monitoring costs, governmental response costs, natural resource damages,
property damage, personal injury, fines or penalties) arising out of, relating
to, based on or resulting from (a) the presence or Release or threatened
Release into the indoor or outdoor environment, of any Hazardous Material,
(b) circumstances forming the basis of any violation, or alleged
violation, of any Environmental Law or Permit or (c) obligations or liabilities
under any Environmental Law.

“Environmental Laws” shall mean all federal,
state, local, and foreign Laws regulating, relating to or imposing liability or
standards of conduct concerning pollution, contamination, preservation or
protection of the environment or workplace health or safety, including all
those relating to the presence, use, production, generation, handling,
transportation, treatment, storage, disposal, distribution, labeling, testing,
processing, discharge, release, threatened release, control, or cleanup of any
hazardous materials, substances or wastes, as such requirements are enacted and
in effect on or prior to the Execution Date.

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“Environmental Liabilities” means any and all
Liabilities (a) arising out of any Environmental Claims, (b) pursuant to any
applicable Environmental Laws, or (c) concerning the presence, handling,
transportation, recycling, disposal or Release of any Hazardous Material,
including pursuant to any lease, sublease or other agreement.

“Equipment” shall mean machinery, computer
hardware, spare parts, supplies, equipment, tooling, patterns, dies and similar
tangible personal property, including all warranty rights with respect thereto,
but shall exclude fixtures.

“Excluded Assets” shall mean the following
assets of Seller and its Subsidiaries:

(a)           all Cash;

(b)           all Receivables;

(c)           all Permits and insurance policies;

(d)           any of Seller Tax Returns, and
records and work papers used in preparation thereof, excluding Tax Returns of
any Transferred Subsidiary;

(e)           all rights of Seller under this
Agreement and the Ancillary Agreements;

(f)            all Contracts set forth on the
Schedule of Excluded Contracts (“Excluded Contracts”);

(g)           other than the Facility Leases, all
leases of real property, together with all fixtures and improvements now or
subsequently located thereon, and all rights, privileges and easements which
are appurtenant thereto;

(h)           all Equipment listed on the
Schedule of Excluded Equipment (“Excluded Equipment”);

(i)            any Inventory that has been disposed
of in the ordinary course of business prior to the Closing without violating
Section 5.2;

(j)            all enterprise software, databases
and networks of Seller, including all sales management, engineering, materials,
business planning, manufacturing, logistics, finance and accounting systems
utilized by the Business;

(k)           all Intellectual Property Rights not
included in the Transferred Business IPR;

(l)            all claims, rights, causes of
action, choses in action, rights of recovery, rights of set-off of any kind
against any Person, to the extent (i) related to Excluded Assets or
Liabilities other than Assumed Liabilities, (ii) related to refunds of,
and credits against, Taxes attributable to the Business for Pre-Closing Tax
Periods, (iii) related to rights to payment or to enforce payment in
connection with Products delivered by Seller on or prior to the Closing Date or
(iv) otherwise related to periods on or prior to the Closing Date; and

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(m)          any Employee Plans other than the
French Subsidiary Plans.

“Facility Leases” shall mean the leases set
forth on Schedule 3.6.

“French Local Sale Agreement” shall mean the
sale and purchase agreement between the Subsidiary Seller and the Subsidiary
Buyer for the sale and purchase of all of the capital stock of the French
Subsidiary to be entered into only for purposes of filing with the French
authorities, in a form reasonably satisfactory to Seller and Buyer.  In case of variation between the terms of the
Agreement and the terms of the French Local Sale Agreement, the Agreement shall
prevail.

“French Subsidiary Plans” means the Employee
Plans listed on the Schedule of French Subsidiary Plans.

“GAAP” shall mean United States generally
accepted accounting principles as in effect on the date or for the period with
respect to which such principles are applied.

“Governmental Authority” shall mean any (a) nation,
state, commonwealth, province, territory, county, municipality, district or
other jurisdiction of any nature; (b) federal, state, local,
municipal, foreign or other government; or (c) governmental or
quasi-governmental authority of any nature (including any governmental
division, department, agency, commission, instrumentality, board, bureau,
official, ministry, organization, unit, body or entity and any court or other
tribunal).

“Hazardous Materials” shall mean the hazardous
or toxic substances, wastes, or other pollutants, including gasoline, petroleum
or petroleum distillates, asbestos or asbestos containing materials or
polychlorinated biphenyls, in each case that are regulated pursuant to or as to
which liability or standards of conduct are imposed pursuant to any
Environmental Laws.

“HSR Act” shall mean the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, and the rules and regulations
thereunder.

“Indebtedness” shall mean (a) any
obligation for borrowed money, including any obligation for accrued and unpaid
interest thereon and any prepayment or other penalties or premiums,
(b) any capitalized lease obligations (as determined in accordance with
GAAP), (c) any reimbursement obligations in respect of any acceptances,
letters of credit, surety bonds or similar arrangements, (d) all obligations to
pay the deferred and unpaid purchase price of property, (e) bank overdrafts
(excluding undrawn lines) and outstanding checks to the extent related to any
account of the Business and (f) all guarantees issued in respect of
obligations of any other Person of the type described in clauses (a) through
(f).

“Intellectual Property Rights” or “IPR”
shall mean all U.S. and foreign intellectual property rights, including without
limitation (i)(a) patents and patent applications and disclosures relating
thereto (and any patents that issue as a result of those patent applications),
and any renewals, reissues, reexaminations, extensions, continuations,
continuations-in-part, divisions and substitutions relating to any of the
patents and patent applications, as well as all related foreign patent and
patent applications that are counterparts to such patents and patent
applications (“Patents”), (b) trademarks, service marks, trade dress,
logos, trade names and corporate names, whether registered or unregistered, and
the goodwill associated therewith, together with any registrations and
applications for registration thereof (“Trademarks”), (c) copyrights and
rights under copyrights, including copyrights in Software, whether registered
or unregistered, including moral rights, and any registrations and applications
for registration thereof (“Copyrights”), (d) mask work rights and
registrations and applications for registration thereof (“Mask Works”),
(e) rights in databases and data collections (including knowledge databases,
customer lists and customer databases) under the Laws of the United States or
any other jurisdiction, whether registered or unregistered, and any
applications for registration therefore (“Databases”); (f) any rights in
discoveries, inventions, developments, processes, designs and techniques that
are not included in the definition of “Patents,” including any documents,
memoranda, reports, studies, data or analyses relating thereto, (g) and any
rights in trade secrets, know-how, and confidential, proprietary or non-public
information, including documents containing the foregoing, analyses thereof,
research, and lists (“Trade Secret Information”); and (h) Residuals.

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“Inventory” shall mean all of Seller’s
inventory of the Products held for resale, including raw materials, work in
process, finished products, wrapping, supply and packaging items with respect
to the Products.

“Laws” shall mean, with respect to a Person,
any constitutions, laws (including common law), statutes, codes, ordinances, or
directives, regulations, rules, notice requirements, edicts, decrees, court
decisions, agency guidelines, principles of law and orders of any Governmental
Authority applicable to such Person.

“Liabilities” shall mean any direct or indirect
liability, indebtedness, obligation, commitment, claim, deficiency, guaranty or
endorsement of or by any Person of any type, whether  known or unknown, disputed or undisputed,
secured or unsecured, asserted or unasserted, due or to become due, vested or
unvested, liquidated or unliquidated, accrued or unaccrued, absolute,
contingent, fixed, matured or unmatured, whether or not the same is required to
be accrued on the financial statements of such Person, and whenever arising.

“Material Adverse Effect” shall mean the effect
of any change, circumstance, development, condition or event that, in the
aggregate, (i) is materially adverse to the business, properties, assets,
condition or results of operations of the Business, taken as a whole, or
(ii) materially impairs Seller’s ability to consummate the transactions
contemplated by this Agreement and the Ancillary Agreements; provided, however, that “Material Adverse Effect”
shall not be deemed to include the effect of (A) any change, circumstance,
development, condition or event affecting the general economic conditions in
the United States or the world; (B) change, circumstance, development, condition or event that affects the semiconductor industry
generally; (C) change, circumstance, development, condition or
event related to the execution,
announcement, performance or pendency of, or compliance with, this Agreement or
the transactions contemplated herein, (D) natural disasters which do not have a
disproportionate impact on the Business compared to its competitors, (E) war,
sabotage, armed hostilities or acts of terrorism which do not have a
disproportionate impact on the Business compared to its competitors, (F) any
failure by the Company to meet or exceed projections or forecasts (provided
that the underlying causes of such failure shall be considered in determining
whether there is a Material Adverse Effect), (G) any matter directly related to
and arising out of the items set forth on Schedule 3.10 set forth in the Seller
Disclosure Schedule, or (H) changes in applicable Law or GAAP.

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“Open Incoming POs” shall mean all purchase
orders, invoices, release orders and similar agreements regarding Products from
customers and distributors to the extent that the Products have not been
shipped to such customers or distributors on or prior to the Closing Date.

“Open Outgoing POs” shall mean all purchase
orders, invoices, release orders and similar agreements with Seller’s
manufacturers, suppliers and other vendors with respect to the Business to the
extent that the applicable product or service has not been delivered or
rendered to Seller on or prior to the Closing Date.

“Permits” shall mean all licenses, permits,
franchises, approvals, authorizations, registrations, waivers, exemptions,
qualifications, consents or orders of, or filings with, any Governmental
Authority, whether foreign, federal, state or local, or any other Person,
necessary for the past or present conduct of, or relating to the operation of
the Business.

“Person” shall mean an individual, partnership,
limited liability company, corporation, association, joint stock company,
trust, joint venture, unincorporated organization or other entity or
organization of any kindor
Governmental Authority.

“Post-Closing Tax Period” shall mean any Tax
Period beginning after the Closing Date and that portion of a Straddle Period
beginning after the Closing Date.

“Pre-Closing Tax Period” shall mean any Tax
Period ending on the Closing Date and the portion of any Straddle Period ending
on the Closing Date.

“Products” shall mean the products of Seller
set forth on Schedule 1.1(Products).

“Projects” shall mean the projects of Seller
set forth on Schedule 1.1(Projects).

“Property Taxes” shall mean all real property
Taxes, personal property Taxes and similar ad valorem Taxes.

“Receivables” shall mean (a) all trade accounts
receivable and other rights to payment from customers and distributors related
to the Business, (b) notes or other receivables, and (c) any claims, remedy or
other rights related to any of the foregoing, in each case of clauses (a)
through (c), in existence on or prior to the Closing Date.

“Release” shall mean any release, spill,
emission, discharge, leaking, pumping, injection, deposit, disposal, discharge,
dispersal, leaching or migration into the indoor or outdoor environment
(including ambient air, surface water, groundwater and surface or subsurface
strata) or into or out of any property, including the movement of Hazardous
Material through air, soil, surface water, groundwater or property.

“Representative” shall mean any officer,
director, principal, attorney, agent, employee, accountant, advisor or other
similar representative.

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“Residuals” means Trade Secret Information in
nontangible form (i.e., not in written or other documentary form, including
tape, disk or other storage), including without limitation ideas, know-how or
techniques, that is retained in the unaided memory of employees due to their
past work for Seller or its Subsidiaries.

“Retained Products” shall mean those products
and projects set forth on Schedule 1.1(Retained Products) and any logical
extensions, successors, fixes, improvements and new releases thereof or thereto.

“Software”
shall mean computer software, programs and databases in any form, including web
content, source code, executable code, tools, developers kits, utilities,
graphical user interfaces, menus, images, icons, and forms, and all versions,
updates, corrections, enhancements and modifications thereof, and all related
documentation, developer notes, comments and annotations related thereto.

“Straddle Period” shall mean any Tax Period
beginning before and ending after the Closing Date.

“Subsidiary” of any Person shall mean any
corporation, partnership or other entity of which such Person owns, directly or
indirectly, 50% or more of the total combined voting power or other ownership
interest or of which such Person acts as a general partner, managing member or
in a similar capacity.

“Tax” shall mean any federal, state, local,
foreign or other tax, levy, impost, fee, assessment or other government charge,
including income, estimated income, business, occupation, value added,
employment, social security, goods and services, stamp, alternative or add-on
minimum, franchise, property, payroll, personal property, sales, transfer, use,
employment, commercial rent, occupancy, franchise or withholding taxes, and any
premium, including interest, penalties and additions in connection therewith.

“Tax Period” shall mean any period prescribed
by any Governmental Authority for which a Tax Return is required to be filed or
a Tax is required to be paid.

“Tax Return” shall mean any return,
declaration, report, claim for refund, or information return or statement
relating to Taxes, including any schedule or attachment thereto, and including
any amendment thereof.

“Transferred Subsidiary” means (a) Silicon
Laboratories France SARL (the “French Subsidiary”), all of the capital
stock of which is owned by Subsidiary Seller and (b) StackCom, a
California corporation (the “California Subsidiary”), all of the capital
stock of which is owned by Parent Seller.

“Viral Software” means any Software licensed to
Seller under an open source, copyleft or similar license agreement that
requires, as a condition of being distributed or otherwise, that the source
code for any proprietary Software that includes, utilizes, is derived from or
is linked with such Software be licensed to third parties to whom such Software
is distributed, including any Software licensed under the GNU General Public
License, the GNU Lesser General Public License, or the Mozilla Public License.

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1.2           Other Defined Terms.  Capitalized terms not defined in Section 1.1
above shall have the meanings set forth in the applicable Sections of the
Agreement.

ARTICLE II.

PURCHASE AND SALE OF ASSETS

2.1           Closing.  The closing (the “Closing”) of the
transactions contemplated by this Agreement and the Ancillary Agreements shall
take place at 8:00 a.m. at the offices of DLA Piper US LLP, 1221 South Mopac
Expressway, Suite 400, Austin, Texas 78746, or at such other place as shall be
mutually agreeable to the parties hereto, as soon as practicable (but in no
event later than two Business Days) after the satisfaction or waiver of the
latest to occur of the conditions to the Closing set forth in Articles VI
and VII hereof (other than the conditions to be satisfied at the Closing) or
such other date and time as shall be mutually agreeable to the parties hereto
(the “Closing Date”) and the Closing shall be deemed effective as of the
end of the day on the Closing Date.

2.2           Transfer of Assets.  Upon the terms and subject to the conditions
contained herein, at the Closing, Seller and its Subsidiaries will sell,
transfer and assign to Buyer, and Buyer will purchase and acquire from Seller
and its Subsidiaries, all of the right, title and interest of Seller and its
Subsidiaries in and to the Assets, free and clear of all Encumbrances.

2.3           Assumption of Liabilities.  Upon the terms and subject to the conditions
contained herein, at the Closing, Buyer shall assume and agree to discharge the
Assumed Liabilities.  Buyer’s assumption
of the Assumed Liabilities shall not limit Buyer’s remedies for Seller’s breach
of any representation or warranty in Article III.

2.4           Excluded Liabilities.  Any other provision of this Agreement
notwithstanding, Buyer shall not be obligated to assume, pay, perform,
discharge or be responsible for any Liabilities of Seller or any of its
Subsidiaries other than the Assumed Liabilities.  Seller and its Subsidiaries shall retain and
shall be responsible for the payment, performance and/or discharge of all
Liabilities of Seller and its Subsidiaries, whether arising before or after the
Closing Date, other than the Assumed Liabilities  (such Liabilities, collectively, the “Excluded
Liabilities”), including the following:

(i)            any Liability to the extent arising
out of or relating to the operation or conduct by Seller or any of its Subsidiaries
or affiliates of any business other than the Business, including any Liability
arising out of or related to (A) the transfer of assets or employees by the
French Subsidiary to the Retained French Subsidiary pursuant to Section 10.18
(including any Liability under any agreement between the French Subsidiary and
the Retained French Subsidiary relating to such transfer and any Liability to
trade or other third party creditors or to tax authorities relating to or
arising out of such transfer) or (B) any failure, whether in part or in whole,
by Seller to procure such transfer of assets and employees;

(ii)           any Liability to the extent arising
out of or relating to any Excluded Asset;

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(iii)          any Liability for Taxes (A) for a
Pre-Closing Tax Period, (B) attributable to the transactions contemplated in
Section 10.18 (Pre-Closing Transfers) or (C) of any Person, whether by reason
of Treasury Regulation section 1.1502-6 (or any similar provision of state,
local or foreign law), as a transferee or successor, by contract or otherwise;

(iv)          any Environmental Liabilities to the
extent arising out of or relating directly or indirectly to the conditions
existing or events occurring on or prior to the Closing Date involving or
relating to the Business or the Assets or that are attributable to the conduct,
acts, operations or omissions of Seller or any of its Subsidiaries;

(v)           all Liabilities arising out of or
related to Employee Plans other than the French Subsidiary Plans, including all
Liabilities arising out of or related to the employees listed on Schedule
10.18;

(vi)          all Liabilities related to Business
Personnel and other employees or independent contractors of Seller and its
Subsidiaries arising prior to or on the Closing Date (including any severance
or termination Liabilities arising due to terminations of employment or
services arrangements with Seller and its Subsidiaries);

(vii)         any interest expense and indebtedness
(whether as obligor, guarantor or otherwise) of Seller or its Subsidiaries to
third parties for borrowed money;

(viii)        any Liability for checks drawn on bank
accounts of Seller or its Subsidiaries that have been issued but not cleared as
of the Closing Date;

(ix)           (A) all accounts payable of Seller or
its Subsidiaries incurred in connection with the operation of the Business on
or prior to the Closing Date and (B) any other Liability of Seller or any of
its Subsidiaries for payment with respect to services performed or goods
acquired in connection with the operation of the Business or the Assets on or
prior to the Closing Date; or

(x)            all Liabilities to the extent
arising out of, relating to or in connection with any Action or threatened
Action (including a cease and desist letter, request for an investigation or
offer to license) involving or relating to the Business or the Assets arising
out of the conduct, operations or ownership of the Business on or prior to the
Closing Date.

2.5           Purchase Price.  Upon the terms and subject to the conditions
contained herein, on the Closing Date, (i) Parent Buyer shall (a) pay or
cause to be paid to Parent Seller, by wire transfer of immediately available
funds to the account designated in writing by Parent Seller at least three
Business Days prior to the Closing, cash in U.S. dollars in an aggregate amount
equal to $108,300,000 (the “Parent Cash Closing Payment”), and shall
(b) pay or cause to be paid, by wire transfer of immediately available
funds to JPMorgan Chase Bank, N.A. (the “Escrow Agent”) to be held in
escrow (the “Escrow Fund”), cash in U.S. dollars in an aggregate amount
equal to $14,250,000 (the “Escrow Amount”) and (ii) Parent Buyer shall
pay or cause to be paid to Subsidiary Seller, by wire transfer of immediately
available funds to the account designated in writing by Subsidiary Seller at
least three Business Days prior to the Closing, cash in U.S. dollars in an
aggregate amount equal to $162,450,000 (the “Subsidiary Cash Closing Payment”
and, collectively with the Parent Cash Closing Payment and the Escrow Amount,
the “Purchase Price”).

 11
 

2.6           Purchase Price Adjustment.

(a)           Within 60 days following the Closing
Date, Seller shall deliver to Buyer a closing statement setting forth the
valuation (“Seller’s Calculation”) of the Inventory, net of the reserve
for Inventory write down (“Net Inventory”) as of the Closing Date (the “Closing
Inventory Value”) calculated on a basis consistent with the valuation of
Inventory in preparing the Financial Statements.

(b)           If Buyer disagrees with Seller’s
Calculation, Buyer may, within 30 days after delivery of the closing statement,
deliver a notice to Seller disagreeing with Seller’s Calculation and specifying
Buyer’s calculation of the Closing Inventory Value (“Buyer’s Calculation”)
and, in reasonable detail, Buyer’s grounds for such disagreement.

(c)           If the notice of disagreement shall
be duly delivered pursuant to Section 2.6(b), Buyer and Seller
shall, during the 15 days following such delivery, use their reasonable efforts
to reach agreement on the Closing Inventory Value.  If Buyer and Seller are unable to reach such
agreement during such period, the parties shall promptly engage a United
States-based division of an accounting firm of international standing mutually
agreeable to the parties as a mediator (the “Mediating Auditor”) to
review promptly this Agreement and the Net Inventory for the purpose of
calculating the Closing Inventory Value. 
In making such calculation, the Mediating Auditor shall determine the
Closing Inventory Value, and such determination shall be an amount within the
range established by Seller’s Calculation and Buyer’s Calculation.  The Mediating Auditor shall deliver to Buyer
and Seller, as promptly as practicable, a report setting forth such calculation
of the Closing Inventory Valuation.  Such
report shall be final and binding upon Buyer and Seller (absent manifest
error).  The cost of the Mediating
Auditor shall be borne (i) by Seller if the difference between Final Inventory
Value and Seller’s Calculation is greater than the difference between the Final
Inventory Value and Buyer’s Calculation, (ii) by Buyer if the first such
difference is less than the second such difference; and (iii) equally by Buyer
and Seller if otherwise.

(d)           Buyer and Seller agree that they will
reasonably cooperate and assist in the preparation of the closing statement,
the calculation of the Closing Inventory Value and in the conduct of the
reviews referred to in this Section 2.6, including by making available
to the other party and its representatives, to the extent reasonably requested,
reasonable access to books, records, work papers, personnel and representatives
in connection with such party’s review and preparation of the closing
statement.

(e)           If the Final Inventory Value is less
than $12,500,000 (the “Base Inventory Value”), Seller shall pay to
Buyer, as an adjustment to the Purchase Price, the amount of such detriment. “Final
Inventory Value” means the Closing Inventory Value (i) as shown in Seller’s
Calculation if no notice of disagreement with respect thereto is duly delivered
to Seller in compliance with Section 2.6(b); or (ii) if such a notice of
disagreement is delivered, (A) as agreed by Buyer and Seller pursuant to Section
2.6(c) or (B) in the absence of such agreement, as shown in the
Mediating Auditor’s calculation delivered pursuant to Section 2.6(c).  Notwithstanding the foregoing, in no event
shall the Final Inventory Value be more than Seller’s Calculation or less than
Buyer’s Calculation.

 12
 

(f)            Any payment pursuant to this Section
2.6 shall be made at a mutually convenient time and place within 10 days
after the determination of Final Inventory Value by Seller’s delivery by wire
transfer of immediately available funds to such account or accounts of such
other party as may be designated by such other party.

2.7           Earn-Out.

(a)           Subject to the provisions of this Section
2.7, following the Closing Buyer shall pay or cause to be paid to Seller a
payment based on 2007 Revenue, 2008 Revenue and 2009 Revenue, as applicable, as
follows:

(i)            No later than April 30, 2008, Buyer
shall prepare and deliver to Seller (i) a statement setting forth in reasonable
detail the 2007 Revenues and the amount of the 2007 Earnout Payment, if any,
and (ii) a certificate of Buyer’s Chief Financial Officer or other officer of
Buyer certifying on behalf of Buyer that the calculation of 2007 Revenues and
the 2007 Earnout Payment, if any, was made in accordance with the terms of this
Section 2.7 (such statement and certificate being referred to as the “2007
Earnout Certificate”).  If the 2007
Earnout Certificate provides that Seller is entitled to a 2007 Earnout Payment,
Buyer shall make such 2007 Earnout Payment to Seller on or prior to the date
that is 30 days following delivery of the 2007 Earnout Certificate.

(ii)           No later than April 30, 2009, Buyer
shall prepare and deliver to Seller (i) a statement setting forth in reasonable
detail the 2008 Revenues and the amount of the 2008 Earnout Payment, if any,
and (ii) a certificate of Buyer’s Chief Financial Officer or other officer of
Buyer certifying on behalf of Buyer that the calculation of 2008 Revenues and
the 2008 Earnout Payment, if any, was made in accordance with the terms of this
Section 2.7 (such statement and certificate being referred to as the “2008
Earnout Certificate”).  If the
Earnout Certificate provides that Seller is entitled to a 2008 Earnout Payment,
Buyer shall make such 2008 Earnout Payment to Seller on or prior to the date
that is 30 days following delivery of the 2008 Earnout Certificate.

(iii)          No later than April 30, 2010, Buyer
shall prepare and deliver to Seller (i) a statement setting forth in reasonable
detail the 2009 Revenues and the amount of the 2009 Earnout Payment, if any,
and (ii) a certificate of Buyer’s Chief Financial Officer or other officer of
Buyer certifying on behalf of Buyer that the calculation of 2009 Revenues and
the 2009 Earnout Payment, if any, was made in accordance with the terms of this
Section 2.7 (such statement and certificate being referred to as the “2009
Earnout Certificate”).  If the
Earnout Certificate provides that Seller is entitled to a 2009 Earnout Payment,
Buyer shall make such 2009 Earnout Payment to Seller on or prior to the date
that is 30 days following delivery of the 2009 Earnout Certificate.

(b)           Prior to December 31, 2007, Seller
shall provide Buyer with Seller’s calculation of Seller’s portion of 2007
Revenue.  Seller shall have an
opportunity to review the 2007 Earnout Certificate, 2008 Earnout Certificate or
2009 Earnout Certificate, as the case may be, for a period of 30 days following
delivery of such certificate (the “Review Period”), during which period
Seller and Seller’s representatives shall have reasonable access, during normal
business hours and upon reasonable notice, to the books and records of Buyer
and Buyer’s financial and accounting personnel for the purpose of confirming
the calculations and information contained in the 2007 Earnout Certificate,
2008 Earnout Certificate or 2009 Earnout Certificate, as the case may be.  All information obtained by Seller shall be
deemed confidential information subject to the restrictions of an appropriate
confidentiality agreement and shall not be disclosed or made use of in any
manner by Seller other than for the limited purpose of enforcing Seller’s
rights under this Agreement.

 13
 

(c)           Manner of Computation.

(i)            For purposes of this Agreement, “2007
Revenue” shall mean net revenue determined in accordance with GAAP, which
is net of returns, allowances and advertiser discounts, recognized by Seller,
Buyer or any of their Subsidiaries (without duplication and net of transactions
between and among Buyer and its Subsidiaries) for the 12 months ending December
31, 2007, from the Products and Projects and their logical extensions,
successors, fixes, improvements and new releases thereto.

(ii)           For purposes of this Agreement, “2008
Revenue” shall mean net revenue determined in accordance with GAAP, which
is net of returns, allowances and advertiser discounts recognized by Buyer or
any of its Subsidiaries (without duplication and net of transactions between
and among Buyer and its Subsidiaries) for the 12 months ending December 31,
2008, from the Products and Projects and their logical extensions, successors,
fixes, improvements and new releases thereto.

(iii)          For purposes of this Agreement, “2009
Revenue” shall mean net revenue determined in accordance with GAAP, which
is net of returns, allowances and advertiser discounts recognized by Buyer or
any of its Subsidiaries (without duplication and net of transactions between
and among Buyer and its Subsidiaries) for the 12 months ending December 31,
2009, from the Products and Projects and their logical extensions, successors,
fixes, improvements and new releases thereto.

(iv)          Such calculations of 2007 Revenue,
2008 Revenue and 2009 Revenue shall be determined in a manner consistent with
(x) GAAP applied on a basis consistent with Buyer’s past practices and (y) the
revenue recognition policies of Buyer.

(v)           The “2007 Earnout Payment”
shall equal the lesser of (A) $65,000,000 and (B)(1) 0.20 multiplied by
(2) the excess of 2007 Revenue over $195,000,000 (the “2007 Revenue Target”).

(vi)          The “2008 Earnout Payment”
shall equal the lesser of (A)(1) $65,000,000 minus (2) the 2007 Earnout Payment
and (B)(1) 0.20 multiplied by (2) the excess of 2008 Revenue over $230,000,000
(the “2008 Revenue Target”).

(vii)         The “2009 Earnout Payment” shall
equal the lesser of (A)(1) $65,000,000 minus (2) the 2007 Earnout Payment minus
(3) the 2008 Earnout Payment and (B)(1) 0.20 multiplied by (2) the excess of
2009 Revenue over $246,000,0000 (the “2009 Revenue Target” and together
with the 2007 Revenue Target and 2008 Revenue Target, the “Revenue Targets”).

 14
 

(viii)        For the avoidance of doubt, the sum of
the 2007 Earnout Payment, 2008 Earnout Payment and 2009 Earnout Payment
(collectively, the “Earnout Payments”) shall not exceed $65,000,000 in
the aggregate.

(d)           Dispute Resolution.

(i)            If Seller disagrees with any aspect
of the 2007 Earnout Certificate, 2008 Earnout Certificate or 2009 Earnout
Certificate, Seller shall deliver written notice to Buyer on or prior to the
expiration of the Review Period, indicating in reasonable detail the nature and
extent for such disagreement (an “Earnout Dispute Notice”).  Unless an Earnout Dispute Notice is delivered
on or prior to the expiration of the applicable Review Period, the 2007 Revenue,
2008 Revenue or 2009 Revenue as set forth in the 2007 Earnout Certificate, 2008
Earnout Certificate or 2009 Earnout Certificate, respectively, shall be final
and binding on Seller and Buyer.

(ii)           If Seller delivers an Earnout Dispute
Notice to Buyer on or prior to the expiration of the Review Period, Seller and
Buyer shall attempt in good faith to resolve the disagreements set forth in the
Earnout Dispute Notice.  If Seller and
Buyer are able to resolve the disagreements set forth in the Earnout Dispute
Notice, they shall reduce such resolution to writing and such agreed upon 2007
Revenue, 2008 Revenue or 2009 Revenue, as the case may be, shall be final and
binding on Seller and Buyer and shall be paid to Seller within 5 Business Days
of the execution of such writing.

(iii)          If Seller and Buyer are not able to
resolve the disagreements set forth in the Earnout Dispute Notice within 30
days following delivery of the Earnout Dispute Notice, Seller and Buyer will
refer the items of disagreement for determination to an independent accounting
firm of outstanding reputation agreed upon by Seller and Buyer (the “Independent
Accounting Firm”) to resolve the disagreements and make a final and binding
determination of the 2007 Revenue, 2008 Revenue or 2009 Revenue, as the case
may be, provided, however,
that the determination of the Independent Accounting Firm shall not be in
excess of the amount proposed by Seller nor less than the amount proposed by
Buyer.  The Independent Accounting Firm,
Buyer and Seller will enter into such engagement letters as reasonably required
by the Independent Accounting Firm to perform under this Section 2.7.  The non-prevailing party shall be responsible
for the fees and expenses of the Independent Accounting Firm; provided that if the Independent Accounting Firm resolves
the dispute so that Buyer and Seller both prevail in part, Buyer and Seller
shall each pay the fees and expenses of the Independent Accounting Firm in the
proportion that such dispute was resolved in favor of the other party, which
shall be determined by the Independent Accounting Firm.

(iv)          If the Independent Accounting Firm
determines that Seller is entitled to a 2007 Earnout, 2008 Earnout or 2009
Earnout, Buyer shall make such payment within 5 Business Days of such determination.

 15
 

(e)           Covenants Regarding Contingent
Payments.  Seller acknowledges,
understands and agrees that, after the Closing, Buyer and its Subsidiaries
shall exercise operational control of the Business and the Assets without
interference by Seller.  Seller
understands that the future creation and marketing of the Business and its
products and projects shall be exercised by Buyer and its Subsidiaries in
accordance with their own business judgment and in their sole and absolute
discretion.  Seller further acknowledges,
understands and agrees that: (A) Buyer and its Subsidiaries will have complete
control and sole and absolute discretion with respect to decisions concerning
the Business after the Closing, (B) such control and discretion by Buyer could
have a material adverse effect upon any amount that may be payable under
Section 2.7 of this Agreement, (C) such control and discretion by Buyer and its
Subsidiaries over the matters set forth in clauses (A) and (B) above could
result in Seller receiving no amounts whatsoever under Section 2.7 of this
Agreement and (D) Buyer and its Subsidiaries have no duty to Seller to
commercially exploit the Business or its products or projects or to exert any
level of efforts in marketing the Business or its products or projects.  In addition, Seller acknowledges, understands
and agrees that whether or not Buyer or any of its Subsidiaries make any sales
with respect to the Business after the Closing, neither Buyer, nor any of its
Subsidiaries are prohibited pursuant to this Section 2.7 from researching,
developing, manufacturing, marketing or selling other products that may compete
with or reduce the sales of the Business. 
Seller also acknowledges, understands and agrees that personnel of Buyer
and its Subsidiaries are only required to take actions in connection with the
commercial exploitation of the Business and its products and projects that such
personnel believe to be in the best interests of Buyer and, as applicable, its
Subsidiaries, and that they are not required to take into account the interests
of Seller in determining whether to take such actions.  Accordingly, with respect to this Section
2.7, Seller agrees not to challenge in any subsequent claim or action any
decision regarding such commercial exploitation of the Business and its
products and projects made by any director, officer, employee or agent of Buyer
or of any of its Subsidiaries in what such decision-making individual
subjectively believes to be the best interests of Buyer or any of its
Subsidiaries, unless such action constitutes a breach by Buyer of any of its
express obligations under this Agreement or the Ancillary Agreements.

(f)            Distribution.  With respect to each payment to Seller
pursuant to this Section 2.7, 40% of such payment shall be made to Parent
Seller and 60% of such payment shall be made to Subsidiary Seller.

(g)           Successors.  Until all obligations of Buyer under this
Section 2.7 are completed, Buyer will require any successor to Buyer’s interest
in the Assets (whether direct or indirect, including by merger, consolidation,
reorganization, or sale of all or substantially all of the Assets) to assume
and agree to perform this Agreement, in the same manner and to the same extent
that Buyer would have been required to perform it if no such succession had
taken place.  In the event that Buyer
sells a material portion (but less than substantially all) of the Assets, Buyer
and Seller shall negotiate in good faith to adjust the provisions of this
Section 2.7 appropriately.  For example,
if Buyer sells its rights with respect to the Si4300/4300T Product, the Revenue
Targets shall be appropriately lowered.

 16

ARTICLE III.

REPRESENTATIONS AND WARRANTIES OF SELLER

Any reference in this Article III to “Seller”
shall be deemed to refer to Parent Seller and its Subsidiaries unless the
context requires otherwise.  Seller  hereby represents and warrants to Buyer that the
statements contained in this Article III are true and correct, except as
expressly set forth in the disclosure schedule of Seller delivered to Buyer
concurrently herewith (the “Seller Disclosure Schedule”). The Seller
Disclosure Schedule shall be arranged in sections and paragraphs corresponding
to the numbered and lettered sections and paragraphs contained in this
Article III, and the disclosure in any section or paragraph shall qualify
(a) the corresponding section or paragraph in this Article III and
(b) the other sections and paragraphs in this Article III only to the
extent that it is reasonably apparent from a reading of such disclosure that it
also qualifies or applies to such other sections and paragraphs.

3.1           Organization of Parent Seller.  Parent Seller is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware.  Parent Seller has the
requisite corporate power and authority to conduct its business (including the
Business) as it is presently being conducted and to own, lease and operate its
properties and assets (including the Assets). 
Parent Seller is qualified or licensed to do business and is in good
standing in each jurisdiction in which either the ownership or use of its
property or assets or the conduct of its business requires such qualification
or license, except for any failure to be so qualified, licensed or in good
standing that would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

3.2           Subsidiaries.  Schedule 3.2 sets forth each Subsidiary
of Seller which owns, leases, operates or makes use of any of the Assets.  Parent Seller owns, directly or indirectly,
all of the issued and outstanding capital stock of each Subsidiary listed on
Schedule 3.2.  Each of the
Subsidiaries listed on Schedule 3.2, is an entity duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization.  Each of the Subsidiaries
listed on Schedule 3.2 has the requisite corporate power and authority to
conduct its business as it is presently being conducted and to own, lease and
operate its properties and assets.  Each
of the Subsidiaries listed on Schedule 3.2 is qualified or licensed to do business
and is in good standing in each jurisdiction in which either the ownership or
use of its property or assets or the conduct of its business requires such
qualification or license, except for any failure to be so qualified, licensed
or in good standing that would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

3.3           Authorization.  Seller has the requisite corporate power and
authority to execute and deliver this Agreement and the Ancillary Agreements to
which it is a party, to consummate the transactions contemplated hereby and
thereby and to perform its obligations hereunder and thereunder.  The execution and delivery by Seller of this
Agreement and the Ancillary Agreements to which it is a party and the consummation
by Seller of the transactions contemplated hereby and thereby have been duly
authorized by all requisite corporate action of Seller.  No other corporate actions or proceedings on
the part of Seller are necessary to authorize the execution, delivery and
performance of this Agreement, the Ancillary Agreements to which it is a party
or the transactions contemplated hereby and thereby.  This Agreement has been duly and validly
executed and delivered by Seller and constitutes the valid and legally binding
obligation of Seller, enforceable in accordance with its terms.  Upon execution and delivery of the Ancillary
Agreements, such Ancillary Agreements will be duly executed and delivered by
Seller and will constitute the valid and legally binding obligations of Seller,
enforceable in accordance with their terms.

 17
 

3.4           Absence of Certain Changes.  Since the Balance Sheet Date, there has not been (i) any Material Adverse
Effect, (ii) any condition, event or occurrence which, individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect or
(iii) any event which, if it had taken place following the Balance Sheet Date,
would not have been permitted by Section 5.2 of this Agreement without the
prior consent of Buyer.

3.5           Tangible Assets.  Seller has good and marketable title to, or a
valid leasehold interest in, the tangible Assets taking into account sales of
Inventory in the ordinary course.  All
such tangible Assets are in good operating condition and repair, ordinary wear
and tear excepted, and have been maintained in accordance with normal industry
practice.

3.6           Facilities.  True and complete copies of each Facility
Lease (including all amendments, supplements, extensions and modifications
thereto) have been delivered or made available to Buyer.  Subject to obtaining the consent of the
lessor to the extent required by any Facility Lease, Seller or the Transferred
Subsidiary (as applicable) is not in Default under the terms of such Facility
Lease.  The Facility Leases entered into
by the French Subsidiary are all commercial leases as governed by provisions of
the Commercial Code replacing the decree no53-960 of 30 September 1953 as well
as the provisions of such decree not yet codified in the Commercial Code and
the French Subsidiary benefits from the commercial ownership in respect to
these leases.  Seller does not own any
real property, the use and operations of which are primarily related to the
Business.

3.7           Contracts and Commitments.

(a)           Contracts.  Schedule 3.7 sets forth a list of all
material Contracts of the following categories to which Seller is party as of
the Execution Date, including:

(i)            Contracts for the lease of any
Assets which constitute personal property;

(ii)           licensing, development and royalty
Contracts (and any other Contracts involving Intellectual Property Rights)
involving material Assets or with material obligations of or to Seller
(excluding purchase orders or invoices entered into in the ordinary course of
business);

(iii)          Contracts with any customers listed in
Schedule 3.18 containing material warranty obligations on the part of
Seller (other than under its unmodified form of standard customer agreement,
the form of which has been made available to counsel to Buyer);

(iv)          any partnership or joint venture
Contracts;

(v)           Contracts with any Governmental
Entity;

 18
 

(vi)          collective bargaining or union
Contracts;

(vii)         any employment Contracts for Business
Employees involving severance, termination, golden parachute, or other similar
payments in excess of $25,000 to any Business Employee following termination of
employment or otherwise as a result of the consummation of the transactions
contemplated by this Agreement;

(viii)        confidentiality and non-disclosure
Contracts (whether Seller is the beneficiary or the obligated party
thereunder);

(ix)           any Contract prohibiting the Business
or the owner thereof from competing with any Person with respect to the
Business in any geographic area; and

(x)            any other Contract not otherwise
covered above which is (a) an Assumed Contract and (b) material to the Business.

Seller has delivered to Buyer copies of all of the
Contracts listed on Schedule 3.7, including all amendments and supplements
thereto.

(b)           Absence of Defaults.  All of the Assumed Contracts are valid,
binding and enforceable obligations of Seller and, to the Knowledge of Seller,
any other party thereto, in accordance with their terms, subject to applicable
Law.  Seller is not and is not alleged to
be in Default under any of the Assumed Contracts, and, to the Knowledge of
Seller, no other party to any Assumed Contract is or is alleged to be in
Default thereunder.  Neither the
execution and delivery of this Agreement or the Ancillary Agreements nor the
consummation of the transactions contemplated hereby and thereby will conflict
with, violate or result in or constitute a breach, lapse, cancellation,
modification or Default under (with the giving of notice or passage of time or
both), or result in the termination or modification of, or accelerate the
performance required under, or result in a right of termination or acceleration
of, any Assumed Contract set forth on Schedule 3.7(a).

3.8           No Conflict or Violation.  Neither the execution, delivery and
performance of this Agreement and the Ancillary Agreements nor the consummation
of the transactions contemplated hereby or thereby will (a) violate any
provision of Seller’s Certificate of Incorporation or Bylaws, (b) require
Seller to give any notice to, or make any filing with, or obtain any
authorization, consent or approval of any Governmental Authority (other than
under the HSR Act or under the laws of Germany) or (c) violate any Law or
Court Order applicable to the Business or the Assets.

3.9           Financial Statements.

(a)           December 30, 2006 is referred to
herein as the “Balance Sheet Date.” 
Schedule 3.9 hereto sets forth the unaudited pro forma consolidated
balance sheet with respect to the Business at the Balance Sheet Date (the “Balance
Sheet”) and unaudited pro forma consolidated statement of operations with
respect to the Business with respect to Seller’s fiscal year ending on the
Balance Sheet Date (the “Operating Statement” and collectively with the
Balance Sheet, the “Financial Statements”).  The Financial Statements (i) have been
prepared in accordance with the books and records regularly maintained by
management of Seller and used to prepare the audited consolidated financial
statements of Seller, (ii) have been derived from and reconciled to those books
and records used to prepare the audited consolidated financial statements which
have been prepared in accordance with GAAP applied on a consistent basis
throughout the periods involved and (iii) fairly present, in all material
respects, the financial position and results of operations of the Business as
of the dates thereof and for the applicable periods then ended.

 19
 

(b)           There are no Assumed Liabilities of
the nature required to be disclosed on financial statements prepared in
accordance with GAAP (other than footnotes thereto), except for such
liabilities or obligations (i) stated or provided for in the Financial
Statements, (ii) set forth on Schedule 3.9(b) or (iii) incurred by the Business
in the ordinary course of business since the Balance Sheet Date and that,
solely in the case of clause (iii), would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect.

3.10         Litigation.

(a)           Schedule 3.10 sets forth all Actions
pending as of the Execution Date, or to the Knowledge of Seller, threatened
(including cease and desist letters or letters stating that Seller or its Subsidiaries
may wish to avoid an infringement claim by licensing a third-party’s
Intellectual Property Rights) as of the Execution Date against Seller or any of
its Subsidiaries (i) with respect to the Business or the Assets,
(ii) against the Transferred Subsidiaries or (iii) seeking to
prohibit the transactions contemplated by this Agreement and the Ancillary
Agreements.  As of the Execution Date,
neither Seller nor any Transferred Subsidiary is subject to any Court Order
adversely affecting the Business or the Assets.

(b)           There is no Action pending, or to the
Knowledge of Seller, threatened (including cease and desist letters or letters
stating that Seller or its Subsidiaries may wish to avoid an infringement claim
by licensing a third-party’s Intellectual Property Rights) against Seller or
any of its Subsidiaries (i) with respect to the Business or the Assets, (ii)
against the Transferred Subsidiaries, or (iii) seeking to prohibit the
transactions contemplated by this Agreement and the Ancillary Agreements, in
each case, except as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. 
Neither Seller nor any Transferred Subsidiary is subject to any Court
Order affecting the Assets or the Business except as would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

3.11         Labor Matters.  Except as set forth on Schedule 3.11, Seller
is not a party to, or bound by, any collective bargaining or labor agreement
with respect to the Business.  In the
past three years, Seller has not experienced any material strike or similar
collective bargaining or labor dispute.

3.12         Compliance with Law.  Seller is and has conducted the Business in
compliance with all Laws and Court Orders relating to the Business, except
where the failure to comply would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  Since January 1, 2004, Seller has not
received any notice to the effect that, or otherwise been advised that, it is
not in compliance with any Laws or Court Orders related to the Assets, the
Business or the Transferred Subsidiaries.

 20
 

3.13         Brokers.  Seller has no liability or obligation to pay
any fees or commissions to any broker, finder or similar agent with respect to
the transactions contemplated by this Agreement for which Buyer would become
liable or obligated.  No Transferred
Subsidiary has any liability or obligation to pay any fees or commissions to
any broker, finder or similar agent with respect to the transactions
contemplated by this Agreement.

3.14         Intellectual Property Rights.

Business IPR.  The (i) Transferred Business IPR, (ii) Field
IPR (as defined in the Intellectual Property License Agreement and together
with the Transferred Business IPR, the “Business IPR”) and (iii) the IPR
set forth on Schedule 3.14(a), collectively constitute all IPR used by Seller
or its Subsidiaries in the conduct by Seller and its Subsidiaries of the
Business as currently conducted.

(b)           Rights.  Subject to any licenses granted by Seller to
third parties and licenses granted to, and use restrictions binding upon,
Seller (copies of all of which have been provided to Parent Buyer), Seller (i)
owns all right, title and interest in and to the Transferred Business IPR, free
and clear of any Encumbrance and (ii) has the right to grant the licenses
in the Field IPR granted in the Intellectual Property License Agreement.  The IPR registrations and applications
specifically identified on Schedule 1.1(e) as Transferred Business IPR have not
expired or been abandoned.  To the
Knowledge of Seller, no Software included in the Transferred Business IPR is or
contains Viral Software.

(c)           Non-infringement.  The manufacture, use and sale of the Products
and the operation of the Business as it is currently conducted do not
(i) to the Knowledge of Seller, infringe any Patent or
(ii) materially infringe or violate any of the Trade Secrets, Copyrights
or Mask Works of any other Person. To the Knowledge of Seller, the Transferred
Business IPR is not invalid or unenforceable. 
Notwithstanding any other provision of this Agreement or the
Intellectual Property License Agreement, this Section 3.14(c), the second
sentence of Section 3.14(b) and Section 3.10 contain the sole and
exclusive representations and warranties as to the validity of Seller’s and/or
its Subsidiaries’ Intellectual Property Rights and/or Seller’s or its
Subsidiaries’ infringement or other violation of any third-party Intellectual
Property Rights.

(d)           In-Licenses.  Except as set forth on Schedule 3.14(d),
Seller does not have any contractual obligation to compensate any Person for
the use of any of the Transferred Business IPR. 
Except as set forth on Schedule 3.14(d), Seller has not licensed any of
the Transferred Business IPR from a third Person or entered into a Contract
that would restrict Buyer’s use of any of the Transferred Business IPR.

(e)           Out-Licenses.  Schedule 3.14(e) lists all Contracts pursuant
to which Seller has granted any third Person a license under any Transferred
Business IPR.

(f)            Trade Secret Information.  Seller has taken reasonable actions to
protect and maintain the confidentiality of the Trade Secret Information
included in the Transferred Business IPR, and has executed (i) confidentiality
and invention assignment agreements with all employees and contractors
(including former employees and contractors) that have contributed to the
creation or invention of or have had access to such Trade Secret Information
and (ii) invention assignment agreements with all employees and contractors
that have contributed to the creation or invention of Patents included in the
Transferred Business IPR.

 21
 

3.15         Employee Benefit Plans.

(a)           Definitions.  The following terms, when used in this Section 3.15,
shall have the following meanings.  Any
of these terms may, unless the context otherwise requires, be used in the
singular or the plural depending on the reference.

(i)            Benefit Arrangement.  “Benefit Arrangement” shall mean any
employment, consulting, severance, retention, change of control or other
similar contract, arrangement or policy and each plan, arrangement (written or
oral), program, agreement or commitment providing for insurance coverage
(including any self-insured arrangements), workers’ compensation, disability benefits,
supplemental unemployment benefits, vacation benefits, retirement benefits,
life, health, disability or accident benefits (including any “voluntary
employees’ beneficiary association” as defined in Section 501(c)(9) of the
Code providing for the same or other benefits) or for deferred compensation,
profit-sharing bonuses, stock options, stock appreciation rights, stock
purchases or other forms of incentive compensation or post-retirement
insurance, compensation or benefits which

(A)          (1) is not a Welfare Plan,
Pension Plan or Multiemployer Plan, (2) is entered into, maintained,
contributed to or required to be contributed to, as the case may be, by Seller
or an ERISA Affiliate or under which Seller or any ERISA Affiliate may incur
any Liability, and (3) covers any employee or former employee of Seller or
any ERISA Affiliate (with respect to their relationship with such entities), or

(B)           is a plan covering employees or
former employees of any Foreign Subsidiary (with respect to their relationship
with such entities) which if maintained or administered in or otherwise subject
to the laws of the United States would be described in paragraph (A).

(ii)           Employee Plans.  “Employee Plans” shall mean all
Benefit Arrangements, Multiemployer Plans, Pension Plans and Welfare Plans.

(iii)          ERISA.  “ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended.

(iv)          ERISA Affiliate.  “ERISA Affiliate” shall mean any
entity which is (or at any relevant time was) a member of a “controlled group
of corporations” with, under “common control” with, or a member of an “affiliated
service group” with, Seller as defined in Section 414(b), (c), (m) or (o)
of the Code.

(v)           Foreign Subsidiary.  “Foreign Subsidiary” shall mean any
Subsidiary organized under the laws of or doing business in any country other
than the United States.

(vi)          Multiemployer Plan.  “Multiemployer Plan” shall mean any “multiemployer
plan,” as defined in Section 3(37) or 4001(a)(3) of ERISA, which any
Seller or any ERISA Affiliate maintains, administers, contributes to or is
required to contribute to, or maintained, administered, contributed to or was
required to contribute to, or under which any Seller or any ERISA Affiliate has
or may have any Liability.

 22
 

(vii)         Pension Plan.  “Pension Plan” shall mean

(A)          any “employee pension benefit plan” as
defined in Section 3(2) of ERISA (other than a Multiemployer Plan) (1)
which Seller or any ERISA Affiliate maintains, administers, contributes to or
is required to contribute to, or, within the five years prior to the Closing
Date, maintained, administered, contributed to or was required to contribute
to, or under which Seller or any ERISA Affiliate may incur any Liability and
(2) which covers any employee or former employee of Seller or any ERISA Affiliate
(with respect to their relationship with such entities), or

(B)           any plan covering employees or former
employees of any Foreign Subsidiary (with respect to their relationship with
such entities) which if maintained or administered in or otherwise subject to
the laws of the United States would be described in paragraph (A); provided, however, that any statutory pension plan covering
employees or former employees of any Foreign Subsidiary (with respect to their
relationship with such entities) shall also be deemed a Pension Plan for
purposes hereof.

(viii)        Welfare Plan.  “Welfare Plan” shall mean

(A)          any “employee welfare benefit plan” as
defined in Section 3(1) of ERISA, (1) which Seller or any ERISA
Affiliate maintains, administers, contributes to or is required to contribute
to, or under which Seller or any ERISA Affiliate may incur any Liability and
(2) which covers any employee or former employee of Seller or any ERISA
Affiliate (with respect to their relationship with such entities), or

(B)           any plan covering employees or former
employees of any Foreign Subsidiary (with respect to their relationship with
such entities) which if maintained or administered in or otherwise subject to
the laws of the United States would be described in paragraph (A) provided, however, that any statutory welfare benefit plan
covering employees or former employees of any Foreign Subsidiary (with respect
to their relationship with such entities), including any statutory severance or
termination protection benefits, shall also be deemed a Welfare Plan for
purposes hereof.

(b)           Disclosure; Delivery of Copies of
Relevant Documents and Other Information. 
Schedule 3.15 contains a complete list of material Employee Plans
which cover Business Employees or any former employee, director or consultant
of any Foreign Subsidiary (with respect to their relationship with such
entities).  Copies of each of the
following documents have been made available by Seller to Buyer:  (i) each material Welfare Plan, Pension
Plan and Multiemployer Plan (and, if applicable, related trust agreements)
which covers Business Employees or any former employee, director or consultant
of any Foreign Subsidiary (with respect to their relationship with such
entities) and all amendments thereto, and (ii) each Employee Plan which
covers or has covered Business Employees (with respect to their relationship
with Seller) and a description of any such Employee Plan which is not in
writing.  Each Employee Plan that is also
a French Subsidiary Plan is set forth on the Schedule of French Subsidiary
Plans.

 23
 

(c)           Representations.

(i)            No Pension Plan.  Neither Seller nor any ERISA Affiliate has
ever maintained, established, sponsored, participated in, or contributed to,
any Pension Plan subject to Part 3 of Subtitle B of Title I of ERISA,
Title IV of ERISA or Section 412 of the Code.

(ii)           Multiemployer Plans.  None of the Employee Plans is a “multiemployer
plan” (as defined in Section 3(37) of ERISA regardless of ERISA’s
applicability thereto) or a multi-employer benefit plan.

(iii)          Retiree Obligations.  No Welfare Plan provides retiree life
insurance, retiree health or other retiree employee welfare benefits to any
person, except as may be required by COBRA or other applicable law, and neither
Seller nor any ERISA Affiliate has ever promised to or contracted with any
Business Employee that such Business Employee would be provided with retiree
life insurance, retiree health or other retiree employee welfare benefits,
except to the extent required by law.

(iv)          General Compliance.  Each Employee Plan that covers any Business
Employee or any former employee, director or consultant of any Foreign
Subsidiary has been maintained in substantial compliance with its terms and
with the requirements prescribed by any and all applicable Laws and Court
Orders, including ERISA and the Code.

(v)           Schedule 3.15(c)(v) sets forth a true
and complete list of all Business Personnel (with names redacted for Business
Personnel who are employed by the French Subsidiary) together with their
salaries, target annual bonus or commission (if applicable) and location, in
each case as of the Execution Date.  As
of the Execution Date, no undertaking to employ any additional persons has been
given by the French Subsidiary.

(vi)          Each Employee Plan intended to be “qualified”
under Section 401(a) of the Code has received a favorable determination letter
from the Internal Revenue Service as to its qualified status.

(vii)         All contributions, premiums and other
amounts required to be paid under the French Subsidiary Plans or by applicable
Law have been paid on a timely basis in accordance with such applicable Law and
the terms of such French Subsidiary Plans, except for any failure to make such
payments that would not result in a material liability to Buyer.  The French Subsidiary has duly and timely
filed all returns with the social and retirement Governmental Authorities.

(viii)        Except as disclosed in Schedule
3.15(c)(viii), no Business Employee is on short-term or long-term disability
leave, secondment, statutory leave of absence or receiving benefits pursuant to
any workers’ compensation legislation or is on any other leave of absence.

 24

(ix)           Except as disclosed in Schedule
3.15(c)(ix), neither Seller nor any of its Subsidiaries has made any formal
plan or any promise to improve or change the benefits provided under any
Employee Plan covering Business Employees.

(x)            No material claim has been made,
commenced or, to Seller’s knowledge, threatened with respect to any French
Subsidiary Plan or any employee or former employee of the French Subsidiary in
connection with their employment (other than routine claims for benefits
payable in the ordinary course, and appeals of any denied claims).

(xi)           No Employee Plan provides for any
bonus, retirement, severance, job security or similar benefit or any
accelerated or enhanced payment or benefit to any Business Employees as a
result of the transactions contemplated herein.

(xii)          There is no collective redundancy or
social plan in the French Subsidiary and there have been no collective
redundancies during the previous 12 months.

3.16         Tax Matters

(a)           Lien.  There are no liens for Taxes (other than for
current Taxes not yet due and payable) on the assets of the Business or the
assets of the Transferred Subsidiaries.

(b)           Tax Returns.  All Tax Returns required to be filed by or
with respect to the Business or the Transferred Subsidiaries have been timely
filed, and all such Tax Returns are complete and correct in all material
respects.  All Taxes due and payable with
respect to the Business or the Transferred Subsidiaries, whether or not shown
on such Tax Returns have been paid in full.

(c)           Tax Audits.  There is no Action pending with respect to
any Tax with respect to the Business or the Transferred Subsidiaries.

(d)           Foreign Person.  Parent Seller is not a “foreign person” as
defined in Section 1445 of the Code.

(e)           Tax Sharing Agreements.  As of the Closing Date, none of the Assets or
the Business shall be bound by any such Tax sharing agreements or similar
arrangements.

(f)            Transferred Subsidiaries.  The unpaid Taxes not yet due of the
Transferred Subsidiaries did not, as of the date set forth on Schedule 3.16(f),
exceed the reserve for Tax liability set forth on Schedule 3.16(f).  The Transferred Subsidiaries will not be
required to include any item of income in, or exclude any item of deduction
from, taxable income for any taxable period (or portion thereof) ending after
the Closing Date as a result of (A) a change in method of accounting for a
taxable period (or portion thereof) ending prior to the Closing Date,
(B) any current agreement with a Tax authority, (C) any intercompany
transaction, (D) any installment sale or open transaction made on or prior
to the Closing Date or (E) as a result of any prepaid amount received on
or prior to the Closing Date.  The value
of the assets and liabilities of the French Subsidiary appearing in their
accounts correspond to the tax value of the said assets and liabilities.  None of the Transferred Subsidiaries (A) is
or has ever been a member of an affiliated group of corporations filing a
consolidated federal income Tax Return or other consolidated income Tax Return,
(B) has any liability for the Taxes of any Person under Treasury Regulations
Section 1.1502-6 (or any similar provision of any state, local, or foreign
law), as a transferee or successor, by contract, or otherwise, or (C) has been
either a “distributing corporation” or a “controlled corporation” in a
distribution in which the parties to such distribution treated the distribution
as one to which Section 355 of the Code is applicable.  No power of attorney granted by or with
respect to the Transferred Subsidiaries relating to Taxes is currently in
force.

 25
 

3.17         Inventory.  All Inventory has been created or acquired in
the ordinary course of business.  All
Inventory is fit for the purpose for which it was procured or manufactured and
such Inventory (i) is not obsolete, damaged or defective and (ii) is of a good
quality usable or saleable in the ordinary course of business, subject only in
the case of each of clause (i) and (ii) to the reserve for Inventory write down
as of the Balance Sheet Date set forth on Schedule 3.17, as adjusted for
operations and transactions through the Closing Date in the ordinary course of
business.

3.18         Customers.  Schedule 3.18 sets forth a list of the
names of the Business’ ten largest end customers (by revenue relating to the
Business for Seller’s 2006 fiscal year) and shows the approximate total
revenues for each such customer relating to the Business for Seller’s 2006
fiscal year.

3.19         Environmental Matters.  Except as would not reasonably be expected to
have, in the aggregate, a Material Adverse Effect, (a) the Business and
the Assets are, and at all prior times have been, in continuous compliance with
all applicable Environmental Laws, (b) Seller has not received any
Environmental Claim, and to the Knowledge of Seller, there is no threatened
Environmental Claim, (c) Seller has not assumed, contractually or by
operation of Law, any Liabilities under any Environmental Laws and
(d) Seller holds, and is in material compliance with, all Governmental
Authorizations required under Environmental Laws to conduct the Business.

3.20         Related Party Transactions.  Except as set forth on Schedule 3.20, neither
Seller nor any of its Subsidiaries is a party to any contract or agreement with
respect to the Business or the Assets with any of its affiliates, other than
any contract or agreement that (i) was entered into upon fair and reasonable
terms no less favorable to Seller or any of its Subsidiaries, as the case may
be, than it would obtain in a comparable arm’s length transaction with a Person
not an affiliate and (ii) may be terminated by Buyer without cost or liability
to Buyer immediately after the Closing.

3.21         Entire Business.  Except as set forth on Schedule 3.21, on the
Closing Date, by virtue of the sale of the Assets to Buyer, Seller and its Subsidiaries
will sell, transfer and assign to Buyer all of the assets and properties of any
kind used by Seller or its Subsidiaries in the conduct by Seller and its
Subsidiaries of the Business as currently conducted.

 26

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer hereby represents and warrants to Seller that
the statements contained in this Article IV are true and correct, except as
expressly set forth in the disclosure schedule of Buyer delivered to Seller concurrently
herewith (the “Buyer Disclosure Schedule” and together with the Seller
Disclosure Schedule, the “Disclosure Schedules”). The Buyer Disclosure
Schedule shall be arranged in sections and paragraphs corresponding to the
numbered and lettered sections and paragraphs contained in this
Article IV, and the disclosure in any section or paragraph shall qualify
(a) the corresponding section or paragraph in this Article IV and
(b) the other sections and paragraphs in this Article IV only to the
extent that it is reasonably apparent from a reading of such disclosure that it
also qualifies or applies to such other sections and paragraphs.

4.1           Organization of Buyer.  Buyer is a limited liability company duly
organized, validly existing and in good standing under the laws of The
Netherlands.  Buyer has the requisite
company power and authority to conduct its business as it is presently being
conducted and to own, lease and operate its properties and assets.  Buyer is qualified or licensed to do business
and is in good standing in each jurisdiction in which either the ownership or
use of its property or assets or the conduct of its business requires such
qualification or license.

4.2           Authorization.  Buyer has the requisite company power and
authority to execute and deliver this Agreement and the Ancillary Agreements,
to consummate the transactions contemplated hereby and thereby and to perform
its obligations hereunder and thereunder. 
The execution and delivery by Buyer of this Agreement and the Ancillary
Agreements by Buyer and the consummation by Buyer of the transactions
contemplated hereby and thereby have been duly authorized by all requisite
company action by Buyer.  No other
corporate actions or proceedings on the part of Buyer are necessary to
authorize the execution, delivery and performance of this Agreement and the
Ancillary Agreements and the transactions contemplated hereby and thereby.  This Agreement has been duly and validly
executed and delivered by Buyer and constitutes, and the Ancillary Agreements,
when executed and delivered, will constitute, the valid and legally binding
obligations of Buyer, enforceable in accordance with their terms.

4.3           No Conflict or Violation.  Neither the execution, delivery and
performance of this Agreement and the Ancillary Agreements nor the consummation
of the transactions contemplated hereby or thereby will (a) conflict with
or violate any provision of Buyer’s organizational documents, (b) conflict
with, violate or result in or constitute a breach, lapse, cancellation,
modification or Default under (with the giving of notice or passage of time or
both), or result in the termination or modification of, or accelerate the
performance required under, or result in a right of termination or acceleration
of, or require any notice under any material contract applicable to Buyer, (c)
require Buyer to give any notice to, or make any filing with, or obtain any
authorization, consent or approval of any Governmental Authority (other than
under the HSR Act or under the laws of Germany) or (d) violate any Law or
Court Order applicable to Buyer, except, in each case with respect to clauses
(b), (c) and (d) above, for such violations, Defaults, terminations, failure or
acceleration which would not in the aggregate, reasonably be expected to have a
material adverse effect on Buyer’s ability to consummate the transactions
contemplated hereby.

 27
 

4.4           No Brokers.  Neither Buyer nor any of its officers,
directors, employees, shareholders or Subsidiaries has employed or made any
agreement with any broker, finder or similar agent or any person or firm which
will result in the obligation of Seller or any of its Subsidiaries to pay any
finder’s fee, brokerage fees or commission or similar payment in connection
with the transactions contemplated hereby.

ARTICLE V.

COVENANTS OF SELLER AND BUYER

Seller and Buyer each covenant with the other as
follows:

5.1           Further Assurances.  Upon the terms and subject to the conditions
contained herein and to the extent permitted by Law, the parties agree
(a) to use all commercially reasonable efforts to take, or cause to be
taken, all actions and to do, or cause to be done, all things necessary, proper
or advisable to consummate and make effective the transactions contemplated by
this Agreement and the Ancillary Agreements, and (b) to cooperate with
each other in connection with the foregoing. 
Without limiting the foregoing, the parties agree to use their
respective commercially reasonable efforts (i) to obtain all necessary
waivers, consents and approvals from other parties to the Assumed Contracts,
(ii) to give all notices to, and make all registrations and filings with
third parties, including submissions of information requested by governmental
authorities, and (iii) to fulfill all conditions to this Agreement.

5.2           Conduct of Business.  From the Execution Date through the Closing,
except as (a) expressly contemplated by this Agreement, (b) consented to by
Buyer in writing (which consent shall not be unreasonably withheld or delayed)
or (c) set forth on Schedule 5.2, Seller and its Subsidiaries shall (i) operate
the Business (and maintain the Books and Records) in the ordinary course of
business, (ii) use commercially reasonable efforts to preserve and maintain its
business and relationships with employees, customers and suppliers of the
Business and shall not take any of the following actions with respect to the
Assets, the Assumed Liabilities or the Business:

(a)           increase the compensation or benefits
of any Business Employee, except for such increases in the ordinary course of
business;

(b)           establish, adopt, enter into, amend
or terminate (or grant any waiver or consent under) any Employee Plan covering
Business Employees or any plan, agreement, program, policy, trust, fund or
other arrangement that would be an Employee Plan covering Business Employees if
it were in existence as of the date of this Agreement, other than Employee
Plans applicable or to be applicable to the employees of Seller and its
Subsidiaries generally;

(c)           grant any license or sublicense,
assign, transfer, pledge, lease or dispose of any Assets or rights (in whole or
in part) under or with respect to any Business IPR, other than nonexclusive
licenses necessary to operate the Business in the ordinary course consistent
with past practice;

 28
 

(d)           sell, assign, transfer, convey,
lease, license, mortgage, pledge or otherwise dispose of, encumber or abandon
any of the Assets, except for sales of inventory in the ordinary course of
business;

(e)           make any change in its accounting
methods or practices with respect to the Business, except insofar as may be
required by a change in GAAP or applicable Law;

(f)            enter into, extend, modify,
terminate or renew any Assumed Contract, except in the ordinary course of
business;

(g)           settle or compromise any Action
(whether or not commenced prior to the date of this Agreement) related to the
Business or the Assets;

(h)           make any Tax elections; change an
annual accounting period; adopt or change any accounting method with respect to
Taxes; file any amended Tax Return; enter into any closing agreement; or settle
or compromise any Tax claim or assessment if, in each case, such action could
have an effect on the Assumed Liabilities, or on the Business or the
Transferred Subsidiaries after the Closing; or

(i)            enter into any agreement or legally
binding commitment, whether oral or written, to do any of the foregoing.

5.3           Regulatory.  Seller and Buyer will make any and all
filings required under the HSR Act and the initial filing under the HSR Act
shall be made as promptly as practicable, but in any event within ten (10) days
following the Execution Date.  Buyer will
also make any filings required under any similar applicable Laws of Germany
(the “Buyer Competition Filings”). 
Each Buyer Competition Filing shall be made as promptly as practicable,
but in any event within ten (10) days following the Execution Date.  Seller and Buyer shall furnish each other
such necessary information and reasonable assistance as the other may
reasonably request in connection with its preparation of necessary filings or
submissions under the provisions of such laws. 
Buyer will be solely responsible for all filing fees for the
transactions contemplated hereby under the HSR Act or similar applicable Laws
of any other Governmental Authority.

5.4           Employee Matters.

(a)           Buyer shall extend an offer of
employment to each Business Employee (such employees who accept Buyer’s offers
of employment and the Business Employees of the French Subsidiary are
hereinafter referred to as the “Rehired Employees”), which offers shall
be on terms which provide aggregate compensation and benefits substantially
equivalent in the aggregate to each such employee’s current compensation and
benefits (other than any equity-based compensation benefits) prior to the
Closing.  Seller shall terminate the
employment of all Business Employees (other than Business Employees of the
French Subsidiary) effective upon the Closing. 
To the extent permitted by Buyer’s benefit plans, Buyer shall cause each
Rehired Employee to be treated as though such individual had been continuously
employed by Buyer from the date that such individual was first employed by
Seller or its Subsidiaries for purposes of eligibility, waiting periods,
pre-existing periods, and similar purposes. 
Buyer shall cause each Rehired Employee to have a beginning balance of
accrued vacation equal to the accrued vacation accrued as an employee of
Seller, which accrued vacation shall be no greater than the accrued vacation
set forth on Schedule 5.4(a).

 29
 

(b)           Nothing contained in this Agreement
shall confer upon any Rehired Employee any right with respect to continuance of
employment by Buyer, nor shall anything herein interfere with the right of
Buyer to terminate the employment of any of the Rehired Employees at any time,
with or without cause.

(c)           No provision of this Agreement shall
create any third party beneficiary rights in any Rehired Employee, any
beneficiary or dependents thereof, or any collective bargaining representative
thereof, with respect to the compensation, terms and conditions of employment
and benefits that may be provided to any Rehired Employee by Buyer or under any
benefit plan which Buyer may maintain.

(d)           On the Closing Date, Buyer shall
deliver a list to Seller of all Rehired Employees.  As soon as practicable thereafter and in
exchange for a general release of all claims from each Rehired Employee, Seller
will:

(i)            amend each outstanding stock
option award agreement to which each such Rehired Employee is a party
under the Silicon Laboratories Inc. 2000 Stock Incentive Plan to
provide that all vested options held by such Rehired Employee as of the
Closing Date (and any options that become vested options pursuant to Section
(ii) below) may be exercised at any time on or prior to December 31, 2007 and
any Seller-imposed, post-exercise holding period requirements shall be
eliminated;

(ii)           amend each outstanding stock option
award agreement to which each such Rehired Employee is a party under the
Silicon Laboratories Inc. 2000 Stock Incentive Plan to provide that all
unvested stock options subject to such agreement which would have vested on or
before December 31, 2008 under the original vesting schedule set forth in each
such agreement had such Rehired Employee continued to be employed by Parent
Seller, or an affiliate of Parent Seller, through December 31, 2008, shall vest
in a single lump sum on the Closing Date; and

(iii)          amend each outstanding restricted
stock units agreement to which each such Rehired Employee is a party under the
Silicon Laboratories Inc. 2000 Stock Incentive Plan to provide that all
restricted stock units subject to such agreement which would have vested on or
before December 31, 2008 under the original vesting schedule set forth in each
such agreement had such Rehired Employee continued to be employed by Parent
Seller, or an affiliate of Parent Seller, through December 31, 2008, shall vest
in a single lump sum on the Closing Date.

(e)           Seller shall be entitled to any
deductions and shall be responsible for any withholding taxes related to the
transactions described in Section 5.4(d) above.

5.5           Exclusivity.  From the Execution Date until the earlier of
(i) the termination of this Agreement pursuant to Section 10.2 or (ii) the
Closing Date, each of Seller and its Representatives shall not (A) solicit,
initiate or continue any negotiations with any Person other than Buyer and its
Representatives regarding the sale of the Business or the Assets contemplated
by this Agreement (other than sales of Inventory in the ordinary course) or (B)
otherwise effect any transaction inconsistent with the transactions
contemplated hereby or by the Ancillary Agreements, and Seller shall
immediately terminate any such existing activities or discussions with any
Person other than Buyer and its Representatives.

 30
 

ARTICLE VI.

CONDITIONS TO SELLER’S OBLIGATIONS

The obligations of Seller to consummate the
transactions provided for hereby are subject to the satisfaction, on or prior
to the Closing Date, of each of the following conditions, any of which may be
waived by Seller:

6.1           Representations, Warranties and
Covenants.  Except as would not have
a material adverse effect on Buyer’s ability to consummate the transactions
contemplated hereunder, the representations and warranties made by Buyer in
this Agreement shall be true and correct at and as of the Closing Date with the
same force and effect as though made at and as of the Closing Date (except to
the extent that any representation or warranty is made as of a specific date,
in which case such representation or warranty shall be true and correct as of
such date).  Qualifiers in the
representations and warranties regarding “material”, “material adverse effect”
or similar materiality qualifiers shall be ignored for purposes of determining
whether a material adverse effect on Buyer’s ability to consummate the
transactions contemplated hereunder has occurred.  Buyer shall have performed or complied in all
material respects with all of its obligations under Article II and
covenants under Article V to be performed or complied with by Buyer on or
prior to the Closing Date.

6.2           No Actions or Court Orders.  No Law or Court Order of a Governmental
Authority of competent jurisdiction shall be in effect prohibiting or
preventing the consummation of the transactions contemplated hereby or by the
Ancillary Agreements.  No Action brought
by any Governmental Authority of competent jurisdiction shall have been
commenced (and be pending) against Buyer seeking to prohibit or otherwise
prevent consummation of the transactions contemplated hereby or by the Ancillary
Agreements.  The applicable waiting
period, including any extension thereof, under the HSR Act shall have expired
or been terminated.

6.3           Execution and Delivery of
Ancillary Agreements.  Buyer shall
have executed and delivered the following Ancillary Agreements to Seller:

(a)           the Assignment and Assumption
Agreement in the form attached as Exhibit A (the “Assignment and
Assumption Agreement”);

(b)           the Escrow Agreement, in the form
attached hereto as Exhibit B (the “Escrow Agreement”);

(c)           the Intellectual Property License
Agreement, in the form attached hereto as Exhibit C (the “Intellectual
Property License Agreement”);

 31

(d)           the Transition Services Agreement, in
the form attached hereto as Exhibit D (the “Transition Services
Agreement”); and

(e)           the French Local Sale Agreement.

6.4           Officer’s Certificate.  Seller shall have received from Buyer an
officer’s certificate, signed by an authorized executive officer of Buyer,
stating that the conditions set forth in Sections 6.1 have been
satisfied.

ARTICLE VII.

 

CONDITIONS TO BUYER’S OBLIGATIONS

The obligations of Buyer to consummate the
transactions provided for hereby are subject to the satisfaction, on or prior
to the Closing Date, of each of the following conditions, any of which may be
waived by Buyer:

7.1           Representations, Warranties and
Covenants.  The representations set
forth in clauses (i) and (ii) of Section 3.4 shall be true and correct at and
as of the Closing Date with the same force and effect as though made at and as
of the Closing Date.  Except as would not
have a Material Adverse Effect, the representations and warranties made by
Seller in this Agreement (other than clauses (i) and (ii) of Section 3.4) shall
be true and correct at and as of the Closing Date with the same force and
effect as though made at and as of the Closing Date (except to the extent that
any representation or warranty is made as of a specific date, in which case
such representation or warranty shall be true and correct as of such
date).  Other than with respect to
clauses (i) and (ii) of Section 3.4, qualifiers in the representations and
warranties regarding “material”, “Material Adverse Effect” or similar
materiality qualifiers shall be ignored for purposes of determining whether a
Material Adverse Effect has occurred. 
Seller shall have performed or complied in all material respects with
all of its obligations and covenants to be performed or complied with by Seller
on or prior to the Closing Date.

7.2           No Actions or Court Orders.  No Law or Court Order of a Governmental
Authority of competent jurisdiction shall be in effect prohibiting or
preventing the consummation of the transactions contemplated hereby or by the
Ancillary Agreements.  No Action brought
by any Governmental Authority of competent jurisdiction shall have been
commenced (and be pending) against Seller or any of its Subsidiaries seeking to
prohibit or otherwise prevent consummation of the transactions contemplated
hereby or by the Ancillary Agreements. 
The applicable waiting period, including any extension thereof, under
the HSR Act shall have expired.

7.3           Execution and Delivery of
Ancillary Agreements.  Seller shall
have executed and delivered each of the following documents to Buyer:

(a)           the Bill of Sale, in the form
attached hereto as Exhibit E (the “Bill of Sale”);

(b)           an Intellectual Property Assignment
Agreement in the form attached hereto as Exhibit F (the “Intellectual
Property Assignment Agreement”);

 32
 

(c)           a certificate of non-foreign status
from Parent Seller and a certificate of Subsidiary Seller indicating that none
of the Assets to be purchased from Subsidiary Seller pursuant to this Agreement
are a “United States real property interest” within the meaning of Section
897(c)(1)(A) of the Code, with each such certificate in form and substance
acceptable to Buyer and in compliance with the Code and Treasury Regulations,
to establish that the sale of the Transferred Subsidiaries and any other
transactions contemplated hereby are exempt from withholding pursuant to
Section 1445 of the Code;

(d)           the Escrow Agreement, in the form
attached hereto as Exhibit B;

(e)           the Intellectual Property License
Agreement, in the form attached hereto as Exhibit C;

(f)            the Transition Services Agreement,
in the form attached hereto as Exhibit D;

(g)           the French Local Sale Agreement;

(h)           the current version of the bylaws of
the French Subsidiary; and

(i)            the current corporate registers of
shareholders’ decisions of the French Subsidiary.

7.4           Officer’s Certificate.  Buyer shall have received from Seller an
officer’s certificate, signed by an authorized executive officer of Seller,
stating that the conditions set forth in Section 7.1 have been
satisfied.

7.5           Employees.  At least 80% of the Business Employees shall
either (a) have accepted in writing (and not withdrawn such acceptance) Buyer’s
offer of employment or (b) remain employed by the French Subsidiary at the time
of Closing.

ARTICLE VIII.

 

CONSENTS TO ASSIGNMENT

8.1           Consents to Assignment.  Seller and Buyer shall each use their
commercially reasonable efforts to obtain all necessary consents, approvals,
waivers and other actions, in form and substance reasonably satisfactory to
Buyer, from third parties necessary to transfer, assign and convey the Assets
(including the assignment of the Assumed Contracts) to Buyer and to vest in
Buyer good and marketable title thereto. 
Seller shall not be liable for any costs associated with physically
delivering the Assets to Buyer.  Upon the
receipt following the Closing Date of any such approval, consent or waiver,
such Assumed Contract shall, without any further action on the part of Buyers
or Seller, be deemed to have been assigned by Seller to Buyer and assumed by
Buyer as of the date of such approval, consent or waiver.   Notwithstanding anything to the contrary in
this Agreement, this Agreement shall not constitute an agreement to assign any
Assumed Contract if an attempted assignment thereof, without the consent of a
third party thereto, would constitute a Default thereof.  If such consent is not obtained, then to the
extent both (i) requested by Buyer and (ii) permitted by Law and the Assumed
Contract, for a period of up to one year immediately following the Closing Date
(at Buyer’s expense):

 33
 

(a)           Seller and Buyer will use
commercially reasonable efforts to cause Buyer to have the benefits and
obligations under any such Assumed Contract; and

(b)           Seller will continue to perform under
any such Assumed Contract at the reasonable direction of Buyer and will
cooperate with Buyer and use its commercially reasonable efforts to subcontract
such Assumed Contract to Buyer, or provide to Buyer the benefits under any such
Assumed Contract, including enforcement for the benefit of Buyer of any and all
rights of Seller against a third party thereto arising out of the breach,
Default, termination or cancellation by such third party or otherwise or, at
Buyer’s direction, appoint Buyers to be Seller’s representative and agent solely
with respect to such Assumed Contract, as applicable.

If and to the extent that such arrangement cannot be made within one
year following the Closing Date, Buyer shall not have any obligation or rights
with respect to any such Assumed Contract and such Contract shall not be deemed
an Asset.

ARTICLE IX.

 

ACTIONS BY SELLER AND BUYER

AFTER THE CLOSING

9.1           Books and Records.  Seller shall be entitled to retain a copy of
the Books and Records for administrative, non-business purposes only and such
copy shall be kept strictly confidential and not disclosed to any other person,
except as may be required by Law.  Each
party agrees that it will cooperate with and make available to the other party,
during normal business hours, all Books and Records, information and employees
(without substantial disruption of employment) retained and remaining in
existence after the Closing which are necessary or useful in connection with
any tax inquiry, audit, investigation or dispute, any litigation or
investigation or any other matter requiring any such Books and Records,
information or employees for any reasonable business purpose.  The party requesting any such Books and
Records, information or employees shall bear all of the out-of-pocket costs and
expenses (including attorneys’ fees, but excluding reimbursement for salaries
and employee benefits) reasonably incurred in connection with providing such
Books and Records, information or employees.

9.2           Indemnification.

(a)           Survival.  All of the representations and warranties made
by each party in this Agreement or in any attachment, Exhibit, Disclosure
Schedule, certificate, document or list delivered by any such party pursuant
hereto shall survive the Closing for a period of (and claims based upon or
arising out of such representations and warranties may be asserted at any time
before the date which shall be) one year following the Closing; provided, however, that the representations and warranties
contained in Section 3.16 (Tax Matters) shall survive until 90 days following
the expiration of the applicable statute of limitations, giving effect to any
extensions or waivers thereof.

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(b)           By Seller.  Seller shall indemnify, save and hold
harmless Buyer and its Representatives, from and against any and all costs,
losses, Taxes, Liabilities, obligations, deficiencies, claims, demands, and
expenses, including reasonable attorneys’ fees, settlement costs, interest, and
penalties (herein, “Damages”), to the extent resulting from (i) any
breach of any representation or warranty made by Seller in this Agreement;
(ii) any breach of any covenant or agreement made by Seller in this
Agreement; and (iii) any Excluded Liabilities.  Damages shall be reduced by the amount of any
insurance benefits actually received or Tax benefits net of any tax detriments
with respect to such Damages.

(c)           By Buyer.  Buyer shall indemnify and save and hold
harmless Seller and its Representatives from and against any and all Damages to
the extent resulting from (i) any breach of any representation or warranty
made by Buyer in this Agreement; (ii) any breach of any covenant or
agreement made by Buyer in this Agreement; or (iii) from and after the
Closing, any Assumed Liability.

(d)           Cooperation.  The indemnified party shall cooperate in all
reasonable respects with the indemnifying party and such attorneys in the
investigation, trial and defense of such lawsuit or action and any appeal
arising therefrom.  The parties shall
cooperate with each other in any notifications to insurers.

(e)           Defense of Claims.  If a claim for Damages (a “Claim”) is
to be made by a party entitled to indemnification hereunder against the
indemnifying party, the party claiming such indemnification shall give written
notice (a “Claim Notice”) to the indemnifying party as soon as
practicable after the party entitled to indemnification becomes aware of any
fact, condition or event which may give rise to Damages for which
indemnification may be sought under this Section 9.2.  If any Action is filed against any party
entitled to the benefit of indemnity hereunder, written notice thereof shall be
given to the indemnifying party as promptly as practicable (and in any event
within 15 days after the service of the citation or summons).  The failure of any indemnified party to give
timely notice hereunder shall not limit rights to indemnification hereunder,
except to the extent that the indemnifying party is damaged by such
failure.  After such notice, if the
indemnifying party shall acknowledge in writing to the indemnified party that
the indemnifying party shall be obligated under the terms of its indemnity
hereunder in connection with such lawsuit or action, then the indemnifying
party shall be entitled, if it so elects at its own cost, risk and expense,
(i) to take control of the defense and investigation of such Action,
(ii) to employ and engage attorneys of its own choice to handle and defend
the same unless the named parties to such Action include both the indemnifying
party and the indemnified party and the indemnified party has been advised in
writing by counsel that there may be one or more legal defenses available to
such indemnified party that are different from or additional to those available
to the indemnifying party, in which event the indemnified party shall be
entitled, at the indemnifying party’s cost, risk and expense, to separate
counsel of its own choosing, and (iii) to compromise or settle such claim,
which compromise or settlement shall be made only with the written consent of
the indemnified party, such consent not to be unreasonably withheld.  If the indemnifying party fails to assume the
defense of such claim within 15 days after receipt of the Claim Notice, the
indemnified party against which such claim has been asserted will (upon
delivering notice to such effect to the indemnifying party) have the right to
undertake, at the indemnifying party’s cost and expense, the defense,
compromise or settlement of such claim on behalf of and for the account and
risk of the indemnifying party.  In the
event the indemnified party assumes the defense of the claim, the indemnified
party will keep the indemnifying party reasonably informed of the progress of
any such defense, compromise or settlement. 
The indemnifying party shall be liable for any settlement of any Action
effected pursuant to and in accordance with this Section 9.2 and
for any final judgment (subject to any right of appeal), and the indemnifying
party agrees to indemnify and hold harmless an indemnified party from and
against any Damages by reason of such settlement or judgment.

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(f)            Brokers and Finders.  Pursuant to the provisions of this Section 9.2,
each of Buyer and Seller shall indemnify, hold harmless and defend the other
party from the payment of any and all broker’s and finder’s expenses,
commissions, fees or other forms of compensation which may be due or payable
from or by the indemnifying party, or may have been earned by any third party
acting on behalf of the indemnifying party in connection with the negotiation
and execution hereof and the consummation of the transactions contemplated
hereby.

(g)           Limitations.

(i)            Buyer shall not be entitled to
indemnification pursuant to Sections 9.2(b)(i) for Damages which
exceed, in the aggregate, the Escrow Amount (the “Cap”).  Seller shall not be entitled to
indemnification pursuant to Sections 9.2(c)(i) for Damages which
exceed, in the aggregate, $14,250,000 (the “Buyer Cap”).  Notwithstanding anything to the contrary in
this Section 9.2(g), neither the Cap nor the Buyer Cap, as
applicable, shall be applicable with respect to Damages resulting from
fraud.  NEITHER BUYER NOR SELLER SHALL BE
LIABLE FOR INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES PURSUANT TO
THIS SECTION 9.2, OTHER THAN INCIDENTAL, SPECIAL, CONSEQUENTIAL OR PUNITIVE
DAMAGES PAYABLE TO A THIRD PARTY IN CONNECTION WITH A THIRD PARTY CLAIM.

(ii)           Other than as provided for in Section
9.3, with the exception of claims based upon fraud, from and after the Closing,
the right of each party to assert indemnification claims and receive
indemnification payments pursuant to this Section 9.2 shall be the sole
and exclusive right and remedy exercisable by such party with respect to the
matters set forth in this Section 9.2 (it being understood that
nothing in this Section 9.2 or elsewhere in this Agreement shall
affect any party’s rights to specific performance or other equitable remedies
with respect to the covenants referred to in this Agreement).

(iii)          Buyer shall not be entitled to
indemnification pursuant to Section 9.2(b)(i) unless the aggregate
amount of Damages for which Seller is liable exceeds $2,850,000 (the “Damages
Threshold”).  If the aggregate amount
of indemnifiable Damages incurred by Buyer exceeds the Damages Threshold, Buyer
shall be entitled to indemnification only for the amount of any such Damages in
excess of the Damages Threshold.

(iv)          Seller shall not be entitled to
indemnification pursuant to Section 9.2(c)(i) unless the aggregate
amount of Damages for which Buyer is liable exceeds $2,850,000 (the “Damages
Threshold”).  If the aggregate amount
of indemnifiable Damages incurred by Seller exceeds the Damages Threshold,
Seller shall be entitled to indemnification only for the amount of any such
Damages in excess of the Damages Threshold.

 36

(h)           Characterization of Payments.  Any payments made to any party pursuant to
Section 9.2 shall constitute an adjustment of the Purchase Price for Tax
purposes and shall be treated as such by Buyer and Seller on their Tax Returns
to the extent permitted by law

9.3           Tax Indemnity.

(a)           Seller shall indemnify and hold
harmless Buyer from:

(i)            any and all Liabilities for Taxes of
the Business and the Transferred Subsidiaries with respect to any Pre-Closing
Tax Period;

(ii)           any and all liability (as a result of
Treasury Regulation Section 1.1502-6 or otherwise) for Taxes of Seller or any
other person which is or has ever been affiliated with the Transferred
Subsidiaries or with whom any of the Transferred Subsidiaries otherwise joins
or has ever joined (or is or has ever been required to join) in filing any
consolidated, combined, unitary or aggregate Tax Return, prior to the Closing
Date;

(iii)          all liability for Taxes arising
(directly or indirectly) as a result of the transactions set forth in Section
10.18; and

(iv)          any payments required to be made on or
after the Closing Date under any Tax sharing, Tax indemnity, Tax allocation or
similar contracts (whether or not written) to which a Transferred Subsidiary
was obligated, or was a party, on or prior to the Closing Date.

(b)           Notwithstanding any provision in this
Agreement to the contrary, the obligations of a party to indemnify and hold
harmless another party pursuant to this Section 9.3 shall survive until 90
days following the expiration of the applicable statute of limitations, giving
effect to any extensions or waivers thereof.

9.4           Non-Compete; Non-Solicitation.

(a)           “Restricted Period” shall mean
a period of 2 years from and after the Closing Date.  Seller hereby agrees that during the
Restricted Period, Seller and Seller’s Subsidiaries shall not, directly or
indirectly, engage anywhere in the world in activities with respect to the “Restricted
Business”.  “Restricted Business”
means (i) CMOS power amplifier integrated circuits; (ii) CMOS transceiver
integrated circuits; (iii) CMOS baseband integrated circuits; (iv) baseband
software; and/or (v) the integration of (i) to (iv) in integrated circuits or
systems, in each of cases (i) through (v) to the extent used to receive and/or
transmit signals complying with one or more of the cellular communications
standards GSM, GPRS, EDGE, UMTS (including WCDMA), CDMA and their derivatives,
extensions and successors.  Restricted
Business does not include activities by Seller and Seller’s Subsidiaries with
respect to the Retained Products.

(b)           From the Execution Date through the
end of the Restricted Period, Seller shall not, and shall cause its controlled
affiliates not to, without the prior written consent of Buyer, directly or
indirectly solicit for employment or hire any person listed on
Schedule 1.1(g) identified as Business Personnel.  From the Execution Date through the end of
the Restricted Period, Buyer shall not, and shall cause its controlled
affiliates not to, without the prior written consent of Seller, directly or indirectly
solicit for employment any employee of Seller (other than Business
Personnel).  From the Execution Date
through the first anniversary of the Closing Date, Buyer shall obtain the
written consent of Seller prior to making an offer of employment to any
Austin-based employee of Seller (other than Business Personnel), which consent
shall not be unreasonably withheld. 
Seller and Buyer agree that Buyer’s hiring an employee of Seller (other
than Business Personnel), during the period set forth in the preceding sentence
is to be considered an exceptional condition requiring the attention of both
managements.

 37
 

(c)           During the Restricted Period, Seller
and its Subsidiaries shall be permitted to license or sublicense, either
directly or indirectly, in the field of the Restricted Business only the
Intellectual Property Rights owned by or licensed to them (other than any
Intellectual Property Rights licensed to them from Buyer and its Subsidiaries
pursuant to Section 3.2 of the Intellectual Property License Agreement) that
does not relate exclusively to the Business (the “Permitted IPR”), solely (i)
for the sale of their own components, subassemblies or subsystems (“Seller
Components”) for incorporation into the products or systems of unrelated
parties (“Third Party Products”) or (ii) to allow unrelated parties to make
Seller Components to incorporate into Third Party Products. For the avoidance
of doubt, the above license covers unrelated parties’ incorporation of Seller
Components into Third Party Products, but does not cover any Third Party
Product as a whole, any components of a Third Party Product other than Seller
Components or the incorporation of any components other than Seller Components
into any Third Party Product.  Further,
any direct or indirect licensing or sublicensing by Seller or its Subsidiaries
in the field of the Restricted Business that is not expressly authorized above
is prohibited during the Restricted Period.

(d)           Seller and Buyer agree and
acknowledge that the restrictions in this Section 9.4 are
reasonable in scope, duration and area and are necessary to protect Buyer and
Seller after the Closing Date.  If the
final judgment of a court of competent jurisdiction declares that any term or
provision of this Section 9.4 is invalid or unenforceable, the
parties agree that the court making the determination of invalidity or
unenforceability shall have the power to reduce the scope, duration or area of
such term or provision to the extent necessary to make it valid and enforceable
and this Section 9.4 shall be enforceable as so modified.

9.5           Tax Matters.

(a)           Tax Books and Records.  Buyer and Seller agree to furnish or cause to
be furnished to the other, upon request, as promptly as practicable, such
information and assistance relating to the Assets, including access to books
and records, as is reasonably necessary for the filing of all Tax Returns by
Buyer or Seller, the making of any election relating to Taxes, the preparation
for any audit by any taxing authority, and the prosecution or defense of any
claim, suit or proceeding relating to any Tax. 
Each of Buyer and Seller shall retain all books and records with respect
to Taxes pertaining to the Assets for a period of at least 6 years
following the Closing Date.  Buyer and
Seller shall cooperate fully with each other in the conduct of any audit,
litigation or other proceeding relating to Taxes involving the Assets.

(b)           Allocation of Property Taxes.  Seller shall be responsible for and shall
promptly pay when due all Property Taxes levied with respect to the Assets
attributable to the Pre-Closing Tax Period. 
Buyer shall be responsible for and shall promptly pay when due all
Property Taxes levied with respect to the Assets attributable to the
Post-Closing Tax Period.  All Property
Taxes levied with respect to the Assets for the Straddle Period shall be
apportioned between the Pre-Closing Tax Period and the Post-Closing Tax Period,
as follows:  the portion allocable to the
Pre-Closing Tax Period shall be deemed to be the amount of such Tax for the
entire Straddle Period multiplied by a fraction the numerator of which is the
number of days in the Tax period ending on the Closing Date and the denominator
of which is the number of days in the entire Straddle Period.  Upon receipt of any bill for such Property
Taxes relating to the Assets, Buyer, on one hand, and Seller, on the other
hand, shall present a statement to the other setting forth the amount of
reimbursement to which each is entitled under this Section 9.5(b)
together with such supporting evidence as is reasonably necessary to calculate
the proration amount.  The proration
amount shall be paid by the party owing it to the other within 10 days after
delivery of such statement.  In the event
that Buyer or Seller shall make any payment for which it is entitled to
reimbursement under this Section 9.5(b), the applicable party shall
make such reimbursement promptly but in no event later than 10 days after the
presentation of a statement setting forth the amount of reimbursement to which
the presenting party is entitled along with such supporting evidence as is
reasonably necessary to calculate the amount of reimbursement.  In the case of Taxes with respect to a
Straddle Period that are not described above, the amount of any such Taxes for
which Buyer or Seller shall be responsible shall be determined as if such
taxable period ended as of the close of business on the Closing Date.

 38
 

(c)           Tax Returns.

(i)            With respect to any Tax Period that
ends on or prior to the Closing Date, Seller shall prepare or cause to be
prepared, and file or cause to be filed (in a manner consistent with past
practices) with the appropriate taxing authorities all Tax Returns required to
be filed, and shall pay all Taxes related to the Business or the Transferred
Subsidiaries due with respect to such Tax Returns; provided,
however, that no such Tax Return with respect to the Transferred
Subsidiaries shall be filed without the prior written consent of Buyer, which
consent will not be unreasonably withheld or delayed .

(ii)           Buyer shall prepare (or cause to be
prepared) and file or cause to be filed when due all Tax Returns that are
required to be filed by or with respect to the Business or the Transferred
Subsidiaries for taxable years or periods beginning after the Closing Date and
shall remit any Taxes due in respect of such Tax Returns.

(iii)          For any Straddle Period of the
Business or the Transferred Subsidiaries, Buyer shall timely prepare or cause
to be prepared, and file or cause to be filed, all Tax Returns required to be
filed and shall pay all Taxes due with respect to such Tax Returns; provided
that two days prior to the filing of such Tax Returns Seller shall remit to
Buyer any amount owed by Seller pursuant to Sections 9.5(b) and 9.3 with
respect to the taxable periods covered by such Tax Returns.  Buyer shall permit Seller to review and
comment on each such Tax Return described in the preceding sentence prior to
the filing thereof and Buyer shall make such changes to such Tax Return as are
reasonably requested by Seller.  No such
Tax Return shall be filed without the prior written consent of Seller, which
consent will not be unreasonably withheld or delayed.

 39
 

(d)           Allocation Agreement.  Seller and Buyer agree to use their best
efforts to enter into an agreement (the “Allocation Agreement”) as soon
as practicable following the Closing Date (but in any event no later than 100
days after the Closing Date) to allocate the Purchase Price, the Assumed
Liabilities, and all other capitalizable costs among the Assets for all
applicable Tax purposes, including Code Section 1060.  Buyer shall
initially prepare a statement setting forth a proposed computation and
allocation of the aggregate purchase price (the “Computation”) and
submit it to Seller no later than 14 days after the Closing Date.  For all purposes, Seller and Buyer agree that
$11,800,000 of the Purchase Price shall be allocated to the sale and purchase
of the French Subsidiary and $7,500,000 of the Purchase Price shall be
allocated to the sale and purchase of the California Subsidiary.  If, within 7 days of Seller’s receipt of the
Computation, Seller shall not have objected in writing to such Computation, the
Computation shall become the Allocation Agreement.  If 21 days after Seller’s receipt of the
Computation, Seller and Buyer have not adopted an Allocation Agreement, any
disputed aspects of the Allocation Agreement shall be resolved within
60 days of Seller’s receipt of the Computation, by a law firm or
internationally recognized independent public accounting firm mutually
acceptable to Seller and Buyer (the “Neutral Arbiters”), which shall
resolve such dispute pursuant to, first, the terms of this Agreement and,
second, the application of applicable Tax Laws to the relevant facts.  The decision of the Neutral Arbiters shall be
final, and the costs, expenses and fees of the Neutral Arbiters shall be borne
equally by Seller and Buyer. Seller and Buyer shall report the Tax consequences
of the transactions contemplated by this Agreement consistent with the terms of
this Agreement and the Allocation Agreement. 
After the Closing, from time to time, Seller and Buyer shall agree upon
revisions to the Allocation Agreement to reflect any adjustments to the
consideration.  Any disputes regarding
such revisions to the Allocation Agreement shall be resolved by the Neutral
Arbiter.  Buyer and Seller agree
to (i) be bound by the Allocation Agreement, as revised under the terms of
this Agreement, (ii) act in accordance with the Allocation Agreement, as
revised under the terms of this Agreement, in the preparation of and the filing
of all Tax Returns (including filing Forms 8594 with their United States
federal income Tax Return for the taxable year that includes the Closing Date)
and in the course of any Tax audit, Tax review or Tax litigation relating
thereto, and (iii) take no position and cause their Subsidiaries to take
no position inconsistent with the Allocation Agreement for income Tax purposes,
including United States federal and state income Tax and non-U.S. income Tax,
unless otherwise required pursuant to a “determination” within the meaning of
Section 1313(a) of the Code.  Not
later than 30 days prior to the filing of their respective Forms 8594 relating
to this transaction if such filing is required by Law, each of Buyer and Seller
shall deliver to the other a copy of its Forms 8594.

(e)           Closing Costs; Transfer Taxes and
Fees.  Except as otherwise set forth
below, Seller and Buyer shall each bear and be liable for 50% of the transfer,
documentary, sales, use, registration, stamp, value-added and other similar
taxes (including all applicable real estate transfer taxes), including any
penalties, interest and additions to tax, incurred in connection with the
transactions contemplated by this Agreement (“Transfer Taxes”).  Seller or Buyer, as the case may be, as “paying
party” shall pay to the appropriate Governmental Authority the Transfer Taxes
for which it is liable under applicable law. 
The paying party shall present a statement to the nonpaying party
setting forth the amount of reimbursement to which the paying party is
entitled.  The nonpaying party shall
reimburse the paying party for 50% of such Transfer Taxes within 10 days after
delivery of such statement, but the nonpaying party shall not be obligated to
reimburse the paying party any earlier than 5 days before such payment is
due.  Seller and Buyer shall cooperate in
timely making and filing all Tax Returns as may be required to comply with the
provisions of any Transfer Tax laws.  To
the extent legally able to do so, Buyer shall deliver to Seller exemption
certificates satisfactory in form and substance to Seller with respect to
Transfer Taxes if such delivery would reduce the amount of Transfer Taxes that
would otherwise be imposed. Any disputes under this provision shall be resolved
by the Neutral Arbiter within 30 days of the submission of such dispute to the
Neutral Arbiter.  Buyer shall pay all
costs of applying for new Permits. 
Notwithstanding the foregoing, Seller shall be solely responsible for
any Transfer Taxes related to the transactions contemplated in Section 10.18
hereof.

 40
 

9.6           Litigation Support.  In the event and for so long as either Buyer
or Seller is actively contesting or defending against any Action in connection
with (i) any transaction contemplated under this Agreement or
(ii) any fact, situation, circumstance, status, condition, activity,
practice, plan, occurrence, event, incident, action, failure to act, or
transaction on or prior to the Closing Date involving or relating to the
Business or the Assets, the other party will reasonably cooperate with the
contesting or defending party and its counsel in the contest or defense, use
commercially reasonable efforts to make available its personnel, and provide
such testimony and access to its books and records as shall be reasonably
necessary in connection with the contest or defense, all at the sole cost and
expense of the contesting or defending party (unless the contesting or
defending party is entitled to indemnification therefor under
Section 9.2).

9.7           French Subsidiary.  As promptly as practicable following the
Closing, Buyer shall change the name of the French Subsidiary to a name not
including the name “Silicon Laboratories” or similar words.  From and after the Closing Date, Buyer shall
cease to publicly use the name Silicon Laboratories France SARL or derivatives
thereof.

ARTICLE X.

 

MISCELLANEOUS

10.1         Termination.

(a)           This Agreement may be terminated
prior to Closing only under the following circumstances:

(i)            by mutual written consent of Buyer
and Seller;

(ii)           by Buyer if (a) Seller’s
representations and warranties set forth in Article III shall be untrue or
Seller shall not have complied with all of its obligations under
Article II or covenants in Article V hereunder through the Closing,
in each case in a manner that would cause the condition set forth in
Section 7.1 to not be satisfied, (b) Buyer shall have notified Seller of
such breach, and (c) the breach has continued without cure for a period of 30
days after such notice of breach;

(iii)          by Seller if (a) Buyer’s
representations and warranties set forth in Article IV shall be untrue or
Buyer shall not have complied with all of its obligations under Article II
or covenants in Article V through the Closing, in each case in a manner
that would cause the condition set forth in Section 6.1 to not be satisfied,
(b) Seller shall have notified Buyer of such breach and (c) the breach has
continued without cure for a period of 30 days after such notice of breach;

 41
 

(iv)          by Buyer or Seller if the Closing
shall not have occurred on or before June 8, 2007; provided,
however, that the right to terminate this Agreement under this
Section 10.1(a)(iv) shall not be available to any party whose failure to
fulfill any obligation under this Agreement shall have been the cause of, or shall
have resulted in, the failure of the Closing to occur on or prior to such date;
or

(v)           by Buyer or Seller if any Court Order
permanently prohibits or prevents the consummation of the transactions
contemplated hereby and such Court Order shall have become final and
non-appealable.

(b)           In the Event of Termination.  In the event of termination of this Agreement
prior to the Closing:

(i)            Each party will redeliver all
documents, work papers and other material of any other party relating to the
transactions contemplated hereby, whether so obtained before or after the
execution hereof, to the party furnishing the same;

(ii)           The provisions of the Confidentiality
Agreement shall continue in full force and effect; and

(iii)          No party hereto shall have any further
Liability to any other party to this Agreement, except (x) for any willful
breach of this Agreement occurring prior to the proper termination of this
Agreement for which a party shall be fully liable and (y) as stated in
subsections (i) and (ii) of this Section 10.1(b).  The foregoing provisions shall not limit or
restrict the availability of specific performance or other injunctive relief to
the extent that specific performance or such other relief would otherwise be
available to a party hereunder.

10.2         Assignment.  Except as otherwise set forth in the
following sentence, neither this Agreement nor any of the rights or obligations
hereunder may be assigned by any party without the prior written consent of the
other party.  Each party hereto
acknowledges and agrees that Buyer may at any time prior to the Closing assign
all or a portion of its rights and obligations hereunder to one or more wholly
owned Subsidiaries of Buyer (provided that (i) Buyer remains liable for the
performance by each such affiliate of its obligations hereunder and (ii) such
assignment does not materially disadvantage Seller).  Subject to the foregoing, this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns, and no other person shall have any
right, remedy, benefit, Liability or obligation under this Agreement as a third
party beneficiary or otherwise.

10.3         Notices.  All notices, requests, demands and other
communications which are required or may be given under this Agreement shall be
in writing and shall be deemed to have been duly given when received if
personally delivered; when transmitted if transmitted by telecopy, electronic
or digital transmission method; the day after it is sent, if sent for next day
delivery to a domestic address by recognized overnight delivery service (e.g.,
Federal Express); and upon receipt, if sent by certified or registered mail,
return receipt requested.  In each case,
notice shall be sent to:

 42
 

 

	
  If to Seller, addressed to:

  

  Silicon Laboratories Inc.

  400 West Cesar Chavez

  Austin, Texas 78701

  Attention: General Counsel

  
	
   

  	 

	
  With a copy to:

  

  DLA Piper US LLP

  1221 South Mopac, Suite 400

  Austin, Texas 78746

  Attention: Philip Russell, P.C.

  	 

	
   

  	 

	
  If to Buyer,
  addressed to:

  

  NXP B.V.

  High Tech Campus 60

  5656 AG Eindhoven

  The Netherlands

  Attention: Guido R.C. Dierick

  	 

	
   

  	 

	
  With a copy to:

  

  Simpson Thacher & Bartlett LLP

  425 Lexington Avenue

  New York, NY 10017

  Attention: Sean Rodgers

  	 

 

or to such other place as either party may designate
as to itself by written notice to the others.

10.4         Choice of Law. This Agreement
shall be governed by and construed in accordance with the internal laws of the
State of New York.

10.5         Entire Agreement; Amendments and
Waivers. This Agreement, the Ancillary Agreements and the Confidentiality
Agreement, together with all exhibits and schedules hereto and thereto
(including the Disclosure Schedules), constitute the entire agreement among the
parties pertaining to the subject matter hereof and supersede all prior
agreements, understandings, negotiations and discussions, whether oral or
written, of the parties. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties hereto. No
amendment, supplement, modification or waiver of this Agreement or any exhibits
or schedules hereto shall be binding unless executed in writing by the party to
be bound thereby. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provision hereof (whether or
not similar), nor shall such waiver constitute a continuing waiver unless
otherwise expressly provided in writing.

 43

10.6         Multiple Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

10.7         Expenses.  Except as otherwise specified in this
Agreement, each party hereto shall pay its own legal, accounting, out-of-pocket
and other expenses incident to this Agreement and the Ancillary Agreements and
to any action taken by such party in preparation for carrying this Agreement
and the Ancillary Agreements into effect.

10.8         Invalidity.  In the event that any one or more of the
provisions contained in this Agreement or in any other instrument referred to
herein, shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, then to the maximum extent permitted by Law, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Agreement or any other such instrument.

10.9         Performance by Subsidiaries.  Each of Seller and Buyer shall cause their respective
Subsidiaries to perform any obligations to be performed pursuant to this
Agreement and hereby guarantee such performance by their respective
Subsidiaries.

10.10       Titles; Gender.  The titles, captions or headings of the
Articles and Sections herein, and the use of a particular gender, are for
convenience of reference only and are not intended to be a part of or to affect
or restrict the meaning or interpretation of this Agreement.

10.11       Public Statements and Press Releases.  The parties hereto covenant and agree that,
except as provided for herein below, each will not from and after the Execution
Date make, issue or release any public announcement, press release, statement
or acknowledgment of the existence of, or reveal publicly the terms, conditions
and status of, the transactions provided for herein, without the prior written
consent of the other party as to the content and time of release of and the
media in which such statement or announcement is to be made, and the parties
shall issue a mutually acceptable press release as soon as practicable after
the Execution Date and after the Closing Date. 
Notwithstanding the foregoing, in the case of announcements, statements,
acknowledgments or revelations which either party is required by applicable Law
to make, issue or release, the making, issuing or releasing of any such
announcement, statement, acknowledgment or revelation by the party so required
to do so by applicable Law shall not constitute a breach of this Agreement if
such party shall have given, to the extent reasonably possible, not less than
2 Business Days prior notice to the other party, and shall have attempted,
to the extent reasonably possible, to obtain prior consent of the other
party.  Each party hereto agrees that it
will not unreasonably withhold any such consent or clearance.

10.12       Cumulative Remedies.  All rights and remedies of either party
hereto are cumulative of each other and of every other right or remedy such
party may otherwise have at Law or in equity, and the exercise of one or more
rights or remedies shall not prejudice or impair the concurrent or subsequent
exercise of other rights or remedies.

10.13       Service of Process.  Each party hereto irrevocably consents to the
service of any process, pleading, notices or other papers by the mailing of
copies thereof by registered, certified or first class mail, postage prepaid,
to such party at such party’s address set forth herein, or by any other method
provided or permitted under New York law.

 44
 

10.14       Arbitration.  Notwithstanding anything herein to the
contrary, any claim or dispute arising out of or related to this Agreement, the
interpretation, making performance, breach or termination thereof, shall be
finally and exclusively settled by binding arbitration to be held in New York,
New York.  The arbitration shall be made
in accordance with the then current Commercial Arbitration Rules of the
American Arbitration Association and such arbitration shall be conducted by an
arbitrator chosen by mutual agreement of Buyer and Seller; failing such
agreement, the arbitration shall be conducted by 3 independent arbitrators, one
chosen by Seller, one chosen by Buyer and such two arbitrators shall mutually
select a third arbitrator, with any decision of two such arbitrators shall be
binding; provided, however, if such arbitrators
fail to agree on a third arbitrator within 20 days, either Buyer or Seller
may make written application to Judicial Arbitration and Mediation Services (“JAMS”),
New York, New York for the appointment of a single arbitrator (the “JAMS
Arbitrator”) to resolve the dispute by arbitration.  At the request of JAMS the parties involved
in the dispute shall meet with JAMS at its offices within 10 Business Days
of such request to discuss the dispute and the qualifications and experience
which each party respectively believes the JAMS Arbitrator should have; provided, however, the selection of the
JAMS Arbitrator shall be the exclusive decision of JAMS and shall be made
within 30 days of the written application to JAMS.  The arbitrator(s) shall have the authority to
grant any equitable and legal remedies that would be available in any judicial
proceeding instituted under New York law to resolve the dispute.  Judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof.  Each party shall pay its own costs and
expenses (including counsel fees) of any such arbitration.  The parties hereto expressly waive all rights
whatsoever to file an appeal against or otherwise to challenge any award by the
arbitrator(s) hereunder; provided, however,
the foregoing shall not limit the rights of either party to bring a proceeding
in any applicable jurisdiction to conform, enforce or enter judgment upon such
award (and the rights of the other party, if such proceeding is brought, to
contest such confirmation, enforcement or entry of judgment).

10.15       Investigation by Buyer.  From the Execution Date through the Closing
Date, to the extent permitted by Law, Seller shall (i) permit Buyer access at
reasonable times (in a manner so as not to interfere with the normal operation
of the Business) to the officers and Books and Records of Sellerconcerning the Business (ii) furnish Buyer and its
Representatives with all backward-looking financial, operating and other historical
data and information relating to the Business or the Assets as Buyer, through
its Representatives, may from time to time reasonably request and (iii) make
available the senior officers of Seller, upon reasonable prior notice and
during normal business hours, to confer from time to time with the appropriate
officers of Buyer regarding the ongoing operations of the Business, the
implementation of the transactions contemplated hereby and other matters
related hereto.  No investigation
pursuant to this Section 10.15 shall affect any representations or warranties
of the parties herein or any indemnification rights with respect thereto or the
conditions to the obligations of the parties hereto.

 45
 

10.16       Interpretation; Rules of Construction.

(a)           When a reference is made in this
Agreement to an Article, Section, Exhibit or Schedule, such reference shall be
to an Article or Section of, or an Exhibit or Schedule to, this Agreement
unless otherwise indicated.  The table of
contents and headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement.  Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to
be followed by the words “without limitation”. 
The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such term.  References to a Person are also to its
permitted successors and assigns.

(b)           The parties hereto agree that they
have been represented by counsel during the negotiation and execution of this
Agreement, and, therefore, waive to the fullest extent possible the application
of any applicable law, holding or rule of construction providing that
ambiguities in an agreement or other document will be construed against the
party drafting such agreement or document

10.17       Knowledge.  Whenever used in this Agreement, “to the
Knowledge of Seller” or related terms shall mean the actual knowledge of those
individuals listed on Schedule 10.17.

10.18       Pre-Closing Transfers.  Prior to Closing, Seller shall procure that
the French Subsidiary shall contribute (a) any Excluded Assets and (b) all
assets that are not primarily related to the Business, in each case, to
Silembia (the “Retained French Subsidiary”).  The French Subsidiary shall transfer
(i) all of the capital stock of the Retained French Subsidiary and
(ii) all rights and obligations under the Share Purchase Agreement between
the French Subsidiary and the former shareholders of Silembia to Subsidiary
Seller in exchange for the cancellation of all indebtedness owed by the French
Subsidiary to Subsidiary Seller.  Prior
to Closing, Seller shall procure that the employees of the French Subsidiary
listed on Schedule 10.18 shall be transferred to the Retained French
Subsidiary.  Prior to Closing, Cash held
by the California Subsidiary and the French Subsidiary shall be transferred to
the Parent Seller or Subsidiary Seller. 
Prior to Closing, any Contract between any Transferred Subsidiary on one
hand and Seller or its Subsidiaries on the other hand (other than an Assumed
Contract listed on Schedule 1.1(a)) shall be terminated.  If any inconsistency, ambiguity or question
of intent or interpretation arises concerning the relationship between this
Agreement and any agreement between the French Subsidiary and the Retained
French Subsidiary, it shall be resolved in favor of this Agreement and this
Agreement shall prevail

10.19       Schedules.  No reference to, or disclosure of, any item
or other matter in the Disclosure Schedules to this Agreement shall be
construed as an admission or indication that such item or other matter (a) is
material or could have a Material Adverse Effect, (b) did not occur in the
ordinary course of business, or (c) is required to be disclosed in the
Disclosure Schedules.  No disclosure in
the Disclosure Schedules shall be deemed an admission to any Governmental
Authority or other Person.  The Disclosure
Schedules are intended to qualify the representations, warranties and covenants
contained in the Agreement and shall not be deemed to expand in any way the
scope or effect of any such representations, warranties or covenants.

 46

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

	
  

  	
   

  	
  NXP B.V.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Theo A.C.M. Claasen

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Theo A.C.M. Claasen

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Executive Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Peter A.M. van Bommel

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Peter A.M. van Bommel

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Executive Vice President and CFO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NXP Semiconductors France SAS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Charles Smit

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Charles Smit

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Authorized Representative

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Silicon Laboratories Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Necip Sayiner

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Necip Sayiner

  	
   

  
	
   

  	
   

  	
  Its:

  	
  President and Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Silicon Laboratories International Pte. Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ CK Tan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  CK Tan

  	
   

  
	
   

  	
   

  	
  Its:

  	
  Managing Director

  	
   

  

 

Signature
Page to Sale and Purchase Agreement

EXHIBIT A

ASSIGNMENT AND ASSUMPTION
AGREEMENT

(See attached.)

EXHIBIT B

ESCROW AGREEMENT

(See attached.)

EXHIBIT C

INTELLECTUAL
PROPERTY LICENSE AGREEMENT

This Intellectual
Property License Agreement (“Agreement”) is effective as of the
Closing Date, between Silicon Laboratories Inc., a Delaware corporation (“Parent
Seller”), and Silicon Laboratories International Pte. Ltd., a private limited company organized under the laws of
Singapore (“Subsidiary Seller”) (collectively “Seller”), and NXP
BV, a limited liability company organized under the laws of The Netherlands (“Parent
Buyer”), NXP Semiconductors France SAS, a company incorporated under the
laws of France (“Subsidiary Buyer,” and together with Parent Buyer, “Buyer”).
For the purpose of this Agreement, unless otherwise defined herein, all
initially capitalized terms are defined in and shall have the meaning specified
in the Sale and Purchase Agreement (as defined below).

RECITAL

WHEREAS,
Seller and certain of its Subsidiaries are engaged in, among other things, the
Business;

WHEREAS,
Seller and Buyer have entered into a Sale and Purchase Agreement, dated as of
February 8, 2007 (“Sale and Purchase Agreement”); and

WHEREAS,
as part of the foregoing, each of Buyer and Seller desire to grant the other
party certain license rights under certain Intellectual Property Rights, and
each of Seller and Buyer desires to obtain such licenses.

AGREEMENT

NOW,
THEREFORE, in consideration of the mutual promises of the parties, and for the
good and valuable consideration set forth in the Sale and Purchase Agreement,
the parties agree as follows:

ARTICLE I — DEFINITIONS

As used herein,
the terms below shall have the following meanings.  Any such terms, unless the context otherwise
requires, may be used in the singular or plural, depending on the reference.

1.1           “Blocks” means all mask works,
circuit blocks, design methodologies and similar items in the Transferred
Business IPR.

1.2           “Excluded Products” means
those products and projects set forth on Schedule 1 and any products that
are substantially similar thereto.

1.3           “Field” means (i) CMOS power
amplifier integrated circuits; (ii) CMOS transceiver integrated circuits; (iii)
CMOS analog and digital baseband integrated circuits; (iv) baseband
software; and/or (v) the integration of one or more of the circuits and software
listed in (i) to (iv) above into integrated circuits or systems in each case of
(i) to (v) where such integrated circuit, system or software is used to receive
and/or transmit signals complying with any current or future cellular
communication standards, including but not limited to GSM, GPRS, EDGE, UMTS
(including WCDMA), CDMA and their derivatives, extensions and successors.

1.4           “Field IPR” means all IPR
(other than the Transferred Business IPR, any Trademarks or any IPR described
in subsection (j) of the “Excluded Assets” in the Sale and Purchase Agreement)
owned by the Seller or its Subsidiaries (or licensed by any of them,
to the extent sublicensable hereunder without additional monetary liability to
Seller or its Subsidiaries) as of the Closing Date that (i) have
been used, developed or held for use by the Seller or its
Subsidiaries in the  Field at any time prior to the Closing
Date or (ii) would be infringed by any of Buyer or its Subsidiaries’ current or
future  products or services within the scope of the Field, excluding for
both (i) and (ii), IPR used by Seller or its Subsidiaries as of the
Closing Date exclusively in or exclusively in connection with the products and
projects on Schedule 1.

1.5           “Field Patents” means all
Patents included in the Field IPR.

1.6            “Intellectual Property Rights”
or “IPR” shall mean all U.S. and foreign intellectual property rights,
including without limitation (i)(a) patents and patent applications and
disclosures relating thereto (and any patents that issue as a result of those
patent applications), and any renewals, reissues, reexaminations, extensions,
continuations, continuations-in-part, divisions and substitutions relating to
any of the patents and patent applications, as well as all related foreign
patent and patent applications that are counterparts to such patents and patent
applications (“Patents”), (b)  trademarks, service marks, trade
dress, logos, trade names and corporate names, whether registered or
unregistered, and the goodwill associated therewith, together with any
registrations and applications for registration thereof (“Trademarks”),
(c) copyrights and rights under copyrights, including copyrights in
Software, whether registered or unregistered, including moral rights, and any
registrations and applications for registration thereof (“Copyrights”),
(d)  mask work rights and registrations and applications for registration
thereof (“Mask Works”), (e) rights in databases and data
collections (including knowledge databases, customer lists and customer
databases) under the Laws of the United States or any other jurisdiction,
whether registered or unregistered, and any applications for registration
therefore (“Databases”); (f) any rights in discoveries, inventions,
developments, processes, designs and techniques that are not included in the
definition of “Patents,” including any documents, memoranda, reports,
studies, data or analyses relating thereto, (g) and any rights in trade
secrets, know-how, and confidential, proprietary or non-public information,
including documents containing the foregoing, analyses thereof, research, and
lists (“Trade Secret Information”); and (h) Residuals.

1.7           “Other Field IPR” means all
Field IPR other than Patents.

1.8           “Residuals” means Trade Secret
Information in nontangible form (i.e., not in written or other documentary
form, including tape, disk or other storage), including without limitation
ideas, know-how or techniques, that is retained in the unaided memory of
employees due to their past work for Seller or its Subsidiaries.

ARTICLE II— LICENSE FROM SELLER

2.1           Field Patent License to Buyer.  Subject to the terms and conditions of this
Agreement, Seller, on behalf of itself and its Subsidiaries, grants to Buyer
and its Subsidiaries a worldwide, paid-up, non-transferable (except as set
forth in Section 9.12 hereof), non-exclusive license under Field Patents in
connection with their current and future activities in the Field including the
right to make, have made, use, sell, offer for sale, and import products and
offer services (and to incorporate products as components, subassemblies or
subsystems in other products made, used and/or sold by or on behalf of Buyer
and its Subsidiaries) in the Field (but excluding Excluded Products), without
the right of sublicense other than as set forth in Section 2.4.  For the avoidance of doubt, this license
covers (i) all Field Patents in existence as of the Closing Date, and all
subsequent divisions, continuations, continuations-in-part(but these only to the extent based on
inventions existing as of the Closing Date), re-examinations, re-issues,
provisionals, extensions and counterparts relating thereto, and (ii) all Field
Patents issuing after the Closing Date that arise from applications filed for
inventions reduced to practice prior to the Closing Date.

2.2           Other Field IPR License to Buyer.  Subject to the terms and conditions of this
Agreement, Seller, on behalf of itself and its Subsidiaries, grants to Buyer
and its Subsidiaries a worldwide, paid-up, non-transferable (except as set
forth in Section 9.12 hereof), non-exclusive license under the Other Field IPR,
in connection with their current and future activities in the Field, including
the right to make, have made, use, sell, offer for sale, and import products
and offer services (and to incorporate products as components, subassemblies or
subsystems in other products made, used and/or sold by or on behalf of Buyer
and its Subsidiaries) in the Field (but excluding Excluded Products), without
the right of sublicense other than as set forth in Section 2.4.

2.3           Use of Residuals by Buyer.  Seller, on behalf of itself and its
Subsidiaries, acknowledges that Buyer and its Subsidiaries may freely use in
any field of use (whether within or outside the scope of the Field) after the
Closing Date all of the Residuals possessed by Rehired Employees, subject to
Article IV.  Such right to use Residuals
shall not constitute or be deemed a license under any patents of Seller or its
Subsidiaries.

2.4           Subsidiaries/Sublicensing.  Each Subsidiary licensed under Section 2.1 or
2.2 shall be bound by the terms and conditions of this Agreement.  Any such license granted to such party shall
terminate on the date such party ceases to be a Subsidiary, provided that the
parties shall negotiate in good faith a transition license period sufficient to
cover the reasonable transition needs of such Subsidiary.  Buyer and its Subsidiaries may sublicense
their licensed rights (i) in Section 2.1 and 2.2, to vendors, suppliers,
distributors, customers, end-users and other parties in the normal supply and
distribution chain or other third-party licensees (“Covered Parties”)
solely (a) for the resale or redistribution of Buyer and its Subsidiaries’
products, (b) for the sale of Buyer and its Subsidiaries’ own components,
subassemblies or subsystems (“Buyer Components”) solely for
incorporation into the products to be distributed or sold by the Covered
Parties (“Covered Products”) or (c) to allow Covered Parties to make
Buyer Components solely for incorporation into Covered Products, subject to
Article IV (but for the avoidance of doubt, the above sublicenses do not cover
Covered Products as a whole, any components, subassemblies or subsystems of
Covered Products (even other components, subassemblies or subsystems sold by
Buyer or its Subsidiaries) that are not Buyer Components or the incorporation
of any components, subassemblies or subsystems other than Buyer Components into
Covered Products, but do cover the incorporation of Buyer Components into
Covered Products) and (ii) in Section 2.2, also to their authorized licensees,
sublicensees, agents, contractors or employees, subject to Article IV.

ARTICLE
III — LICENSE FROM BUYER

3.1           Transferred Business IPR License
to Seller.

3.1.1        License Outside Field.  Subject to the terms and conditions of this
Agreement, Buyer, on behalf of itself and its Subsidiaries, grants to Seller
and its Subsidiaries a worldwide, paid-up, non-transferable (except as set
forth in Section 9.12 hereof), non-exclusive license under any and all
Transferred Business IPR (other than Trademarks), including without limitation
all Blocks (the “Buyer IPR”), in connection with their current and
future activities outside the Field, including the right to make, have made,
use, sell, offer for sale, and import products and offer services (and to
incorporate products as components, subassemblies or subsystems in other
products made, used and/or sold by or on behalf of Seller and its Subsidiaries)
outside the Field (and the right to use or reuse any Blocks outside the Field
in connection therewith), without the right of sublicense other than as set
forth in Section 3.4.  For the avoidance
of doubt, this license includes (i) all Patents included in the Transferred
Business IPR and in existence as of the Closing Date, and all subsequent divisions,
continuations, continuations-in-part(but
these only to the extent based on inventions existing as of the Closing Date),
re-examinations, re-issues, provisionals, extensions and counterparts relating
thereto, and (ii) all Patents issuing after the Closing Date that arise from
applications filed for inventions reduced to practice prior to the Closing
Date, to the extent any of them are included in the Transferred Business IPR;
but (iii) excludes any Intellectual Property Rights owned by Buyer and its
Subsidiaries other than the Transferred Business IPR, except as expressly set
forth in this Agreement.

3.1.2        License for Components.  Subject to the terms and conditions of this
Agreement, Buyer, on behalf of itself and its Subsidiaries, grants to Seller
and its Subsidiaries an additional worldwide, paid-up, non-transferable (except
as set forth in Section 9.12 hereof), non-exclusive license under any and all
Buyer IPR that does not relate exclusively to the Business, solely (i) for the
sale of their own components, subassemblies or subsystems licensed under
Section 3.1.1 (“Seller Components”) solely for incorporation into
Covered Products or (ii) to sublicense to Covered Parties, solely to allow such
Covered Parties to make Seller Components to incorporate into Covered Products,
in each case, solely for the sale of Covered Products in or outside of the
Field.  For the avoidance of doubt, the
above license does not cover any Covered Product as a whole, any components,
subassemblies or subsystems of Covered Products (even other components,
subassemblies or subsystems sold by Seller or its Subsidiaries) that are not
Seller Components or the incorporation of any components, subassemblies or
subsystems other than Seller Components into Covered Products, but does cover
the incorporation of Seller Components into Covered Products.  For the avoidance of doubt, this license
includes (a) all Patents included in the Transferred Business IPR and in
existence as of the Closing Date that do not relate exclusively to the
Business, and all subsequent divisions, continuations, continuations-in-part(but these only to the extent based on inventions existing
as of the Closing Date that do not relate exclusively to the Business),
re-examinations, re-issues, provisionals, extensions and counterparts relating
thereto, and (b) all Patents issuing after the Closing Date that arise from
applications filed for inventions reduced to practice prior to the Closing Date
that do not relate exclusively to the Business, to the extent any of them are
included in the Transferred Business IPR; but (iii) excludes any
Intellectual Property Rights owned by Buyer and its Subsidiaries, except as
expressly set forth in this Agreement.

3.2           Other Buyer License to Seller.  Subject to the terms and conditions of this
Agreement, Buyer, on behalf of itself and its Subsidiaries, grants to Seller
and its Subsidiaries a worldwide, paid-up, personal and non-transferable,
non-exclusive license under any and all of its and their Patents with
respect to Seller and its Subsidiaries’ use of any Blocks in their
businesses outside the Field, provided that, in addition to Buyer’s
remedies in Article V, Seller expressly acknowledges, on behalf of itself
and its Subsidiaries, that the license in this Section 3.2 shall terminate
automatically, without the requirement of notice from Buyer, upon the
commencement of any action or proceeding (that is not a claim for breach of
this Agreement or a counterclaim) by or on behalf of Seller or any of its
Subsidiaries that Buyer or any of its Subsidiaries has Infringed any
of Seller or its Subsidiaries’ Patents. 
For the avoidance of doubt, notwithstanding anything in Section 9.12 to
the contrary, this license in Section 3.2 is personal to Seller and its
Subsidiaries in existence as of the Closing Date, and may not be (i) assigned,
sublicensed (except as set forth in Section 3.4.3), or assumed in bankruptcy,
including assignments by operation of law or otherwise, including via a change
of control (which shall be deemed an “assignment” for purposes of this Section
3.2), merger or reorganization (regardless of whether Seller or its
Subsidiaries are the surviving party); or (ii) used by Seller or its
Subsidiaries in connection with any assets, businesses or lines of business
acquired from other persons after the Closing Date, in each case, without the
prior written consent of Buyer in its sole discretion.  Any attempted transaction in violation of the
foregoing shall be void ab initio
and of no force or effect.  For the
further avoidance of doubt, if any of Seller or its Subsidiaries’ products
contain components, subassemblies or subsystems other than the above-licensed
Blocks, the license in this Section 3.2 does not cover such products as a whole
or any components, subassemblies or subsystems of such products that are not
the above-licensed Blocks or the incorporation of such other components,
subassemblies or subsystems with or into any of the above-licensed Blocks.

3.3            
Use of Residuals by Seller. Buyer, on behalf of itself and its
Subsidiaries, acknowledges that Seller and its Subsidiaries may freely use in
any field of use (whether within or outside the scope of the Field) after the
Closing Date all of the Residuals that relate to the Business and are possessed
by their employees, subject to Article IV. 
Such right to use Residuals shall not constitute or be deemed a license
under any patents, of Buyer or its Subsidiaries.

3.4           Subsidiaries/Sublicensing.

3.4.1        Each Subsidiary licensed under Section
3.1 or 3.2 shall be bound by the terms and conditions of this Agreement.  Any such license granted to such party shall
terminate on the date such party ceases to be a Subsidiary, provided that the
parties shall negotiate in good faith a transition license period sufficient to
cover the reasonable transition needs of such Subsidiary.

3.4.2        Seller
and its Subsidiaries may sublicense their licensed rights in Section 3.1.1 to
Covered Parties, solely (a) for the resale or redistribution of Seller and its
Subsidiaries’ products, (b) for the sale of Seller Components solely for
incorporation into Covered Products or (c) to allow Covered Parties to make
Seller Components solely for incorporation into Covered Products, in each case,
outside the Field and subject to Article IV. 
For the avoidance of doubt, the above sublicenses do not cover Covered
Products as a whole, any components, subassemblies or subsystems of Covered
Products (even other components, subassemblies or subsystems sold by Seller or
its Subsidiaries) that are not Seller Components or the incorporation of any
components, subassemblies or subsystems other than Seller Components into
Covered Products, but do cover the incorporation of Seller Components into
Covered Products.

3.4.3        Seller
and its Subsidiaries may sublicense their licensed rights in Section 3.2 to
Covered Parties, solely (a) for the resale or redistribution of Seller and its
Subsidiaries’ products, (b) for the sale of Seller Components solely for
incorporation into Covered Products or (c) to allow Covered Parties to make
Seller Components solely for incorporation into Covered Products, in each case,
outside the Field subject to Article IV. 
For the avoidance of doubt, the above sublicenses do not cover Covered
Products as a whole, any components, subassemblies or subsystems of Covered
Products (even other components, subassemblies or subsystems sold by Seller or
its Subsidiaries) that are not Seller Components, the incorporation of any
components, subassemblies or subsystems other than Seller Components into such
Covered Product, or the incorporation of Seller Components into Covered
Products.

ARTICLE IV —
CONFIDENTIALITY

4.1           Confidentiality. 
Each party, on behalf of itself and its Subsidiaries, agrees that for a
period of three years from the Closing Date, it shall (i) use commercially
reasonable internal confidentiality and security procedures, including but not
limited to written non-disclosure provisions in its dealings with other
parties, to protect the other party’s Trade Secret Information from
unauthorized disclosure, and (ii) disclose such Trade Secret Information only
to those licensees, sublicensees, agents, contractors or employees who have a
need to know same for the receiving party to exploit the benefits of its
licenses granted hereunder and who agree in writing not to disclose such Trade
Secret Information to any unauthorized person. 
Notwithstanding these restrictions, either party may disclose the other
party’s Trade Secret Information to the extent disclosure is implied by its
necessary incorporation into products, provided that such party utilizes commercially
reasonable efforts to minimize the form and substance of the Trade Secret
Information disclosed thereby.  Each
party agrees and acknowledges that violation of these provisions by the other
party or its Subsidiaries (or authorized third parties receiving Trade Secret
Information from any of them) will cause irreparable harm to the non-violating
party and that the non-violating party shall be entitled to seek an injunction
(without necessity to post bond) or other temporary relief in addition to the non-violating
party’s other rights at law or in equity.

4.2           Exceptions. 
The obligations in Section 4.1 shall not cover any information
(i) that the owning party discloses to a third party with no further
restrictions on its disclosure; (ii) that becomes known to the industry or the
public through no fault of the receiving party; or (iii) that the
receiving party develops independently or obtains from another legitimate
source.  A party may disclose information
as required to be disclosed pursuant to applicable law, statute, rule,
regulation, court order or legal process, provided that in this case, the
receiving party shall promptly notify the owning party of any such requirement,
disclose no more information than is so required and cooperate, at the owning party’s
request and expense, with all attempts by the owning party to obtain a
protective order or similar treatment.

ARTICLE V — RELEASE FROM BUYER

5.1           Buyer’s Release. 
Buyer, on behalf of itself and its Subsidiaries (“Releasing Parties”),
completely and irrevocably releases and covenants not to sue Seller and/or its
Subsidiaries from any claims that their operation of the Business or use of the
Transferred Business IPR, in each case, prior to the Closing Date infringed,
misappropriated or violated (“Infringed”) any of Buyer or its
Subsidiaries’ current or future IPR. 
Seller and its Subsidiaries may not assign this release, in whole or in
part, except as set forth in Section 9.12, and any such attempted assignment
shall be null and void ab initio
and of no force or effect.

5.2           Covered Parties. 
The release in Section 5.1 covers Seller and its Subsidiaries and their
Covered Parties with respect to any Infringements caused by Seller and its
Subsidiaries, but do not cover any other actions of such Covered Parties.  For the avoidance of doubt, if any Covered
Product contains Seller Components, the release in Section 5.1 does not cover
such Covered Product as a whole or any other components, subassemblies or
subsystems of such Covered Product (even other components sold by Seller or its
Subsidiaries) that are not Seller Components or the incorporation of any
components, subassemblies or subsystems other than Seller Components into such
Covered Product, but does cover the incorporation of Seller Components into such
Covered Product.

5.3           Facts Unknown. 
In giving the release in Section 5.1, which include claims which may be
unknown to the parties at present, the Releasing Parties hereby acknowledge
that they are aware of and understand that statutory law of certain jurisdictions
provide that a general release does not extend to claims which the releasing
party does not know or suspect to exist in his, her or its favor at the time of
executing the release, which if known by him, her or it must have materially
affected settlement with the released party.

5.4           Waiver.  The
Releasing Parties hereby expressly waive and relinquish all rights and benefits
and any such law or legal principle in any jurisdiction with respect to claims
released hereby.  The Releasing Parties
further understand and acknowledge the significance and consequence of such
specific waiver.

5.5           Non-Use of Certain Information.  Buyer, on behalf of itself and its
Subsidiaries, covenants that it will not use any confidential information of
Seller or its Subsidiaries that Buyer or its Subsidiaries learn from the
present transaction or from Rehired Employees and that such Rehired Employees
possess due to their work for Seller and its Subsidiaries (“Restricted
Information”) to assert any claim against Seller or its Subsidiaries for
Infringing any Intellectual Property Rights owned by Buyer or its
Subsidiaries.  The covenant in this
Section 5.5 covers Seller and its Subsidiaries and their Covered Parties with
respect to any Infringements caused by Seller and its Subsidiaries, but does
not cover any other actions of such Covered Parties.

ARTICLE VI — TERM AND
TERMINATION

6.1           Term.  The
term of this Agreement shall be from the Closing Date until the expiration of
the last to expire of the Field IPR and Buyer IPR, unless previously terminated
as hereinafter provided.  The licenses in
Section 2.1, 2.2, 3.1 and 3.2 shall expire, with respect to individual
Intellectual Property Rights licensed thereby, upon the expiration of each such
right, provided that such expiration shall not affect the validity of such
license with respect to any other licensed rights.

6.2           Voluntary Termination.  By written notice to the other party, each
party may voluntarily terminate all or a specified portion of the license and
rights granted to it hereunder.  Such
notice shall specify the effective date of such termination and shall clearly
specify the affected licensed rights. 
Any such termination shall not affect the licenses granted to the other
party by the terminating party.

6.3           Termination for Material Breach.  Either party may terminate the licenses it
has granted to the other party hereunder, effective upon notice, if it is found
in a final, non-appealable decision pursuant to Section 8.8 of this Agreement
that (i) such party has materially breached any warranty, term, condition or
covenant of this Agreement and failed to cure that breach within sixty days
after written notice, specifying such breach in reasonable detail and
(ii) termination is warranted under the circumstances.  Any such termination shall not affect the
licenses granted to the other party by the breaching party.

6.4           Survival. 
Termination or expiration of this Agreement and/or the licenses in
Articles II and/or III shall not affect the release granted in Section 5.1, which
is deemed irrevocable.  All provisions of
this Agreement that, by their nature, would survive its expiration or
termination, are deemed to survive such circumstances.

ARTICLE VII — LIMITATION
OF LIABILITY

EXCEPT AS SET
FORTH BELOW OR IN THE SALE AND PURCHASE AGREEMENT, IN NO EVENT SHALL EITHER
PARTY OR ITS SUBSIDIARIES BE LIABLE TO THE OTHER PARTY OR ITS SUBSIDIARIES FOR
ANY LOST PROFITS OR FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT OR INCIDENTAL
DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING WITHOUT
LIMITATION NEGLIGENCE), ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR
NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  THE FOREGOING SHALL NOT, HOWEVER, LIMIT THE
AMOUNT OR TYPES OF DAMAGES AVAILABLE TO EITHER PARTY FOR ANY DISCLOSURE OF
TRADE SECRET INFORMATION IN VIOLATION OF ARTICLE IV (CONFIDENTIALITY).

ARTICLE VIII — DISCLAIMER
OF WARRANTIES

EXCEPT AS
OTHERWISE SET FORTH IN THE SALE AND PURCHASE AGREEMENT, EACH PARTY ACKNOWLEDGES
AND AGREES THAT ALL INTELLECTUAL PROPERTY RIGHTS LICENSED HEREUNDER ARE
LICENSED WITHOUT ANY WARRANTIES WHATSOEVER, AND EACH PARTY DISCLAIMS ALL
WARRANTIES OF ANY KIND WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT
LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, TITLE OR NON-INFRINGEMENT.  Each
party makes no warranty or representation under this Agreement as to the
validity and/or scope of any IPR licensed by such party and its Subsidiaries to
the other party hereunder or any warranty or representation that any
manufacture, use, importation, offer for sale or sale of any product or service
by a licensed party hereunder will not Infringe any IPR of any person.

ARTICLE IX —
MISCELLANEOUS

9.1           No Implied Licenses.  Nothing contained in this Agreement shall be
construed as conferring any rights by implication, estoppel or otherwise, under
any IPR other than the rights expressly granted in this Agreement.

9.2           Licensee Bankruptcy Protection.  All rights and licenses granted under or
pursuant to this Agreement are, and shall otherwise be deemed to be, for
purposes of Section 365(n) of title 11 of the United States Code (the “Bankruptcy
Code”), licenses of rights to “intellectual property” as defined under
Section 101 of the Bankruptcy Code.  The
parties agree that each of Seller and Buyer and their Subsidiaries, as
licensees of such rights under Articles I and/or III of this Agreement, shall
retain and may fully exercise all of their rights and elections under the
Bankruptcy Code.

9.3           Infringement Suits. 
Neither party shall have any obligation hereunder to institute or
maintain any claim against any party for the Infringement of any Intellectual
Property Rights licensed hereunder, or to defend any claim brought by any
person which challenges or concerns the validity of any of such rights.  A licensed party shall not have any right to
institute any claim against any person for the Infringement of any Intellectual
Property Rights licensed to such licensed party hereunder.

9.4           No Obligation to Provide Technical Assistance.
Except as otherwise set forth in the Sale and Purchase Agreement and Transition
Services Agreement, Seller shall not be obligated to provide Buyer with any
technical assistance or to furnish Buyer with or obtain any documents, materials
or other information.

9.5           No Obligation
to Obtain or Maintain IPR. 
Neither party is obligated to (a) file any patent application or to
secure any patent or patent rights, (b) maintain any patent in force, (c) file
any copyright registration application or to secure any registered copyright
rights, or (d) file any mask work application or to secure any mask work
rights, in each case, with respect to the Intellectual Property Rights it
licenses to the other party hereunder.

9.6           Entire Agreement; Amendment; Waiver.  This Agreement, the Sale and Purchase
Agreement and the Ancillary Agreements, together with all exhibits and
schedules hereto and thereto (including the Disclosure Schedules to the Sale
and Purchase Agreement), constitute the entire agreement among the parties
pertaining to the subject matter hereof and supersede all prior agreements,
understandings, negotiations and discussions, whether oral or written, of the
parties.  This Agreement may not be
amended except by an instrument in writing signed on behalf of each of the
parties hereto.  No amendment,
supplement, modification or waiver of this Agreement or any exhibits or
schedules hereto shall be binding unless executed in writing by the party to be
bound thereby.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provision hereof (whether or not similar), nor shall such waiver
constitute a continuing waiver unless otherwise expressly provided in writing.

9.7           Governing Law. 
This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York.

9.8           Arbitration. 
Notwithstanding anything herein to the contrary, any claim or dispute
arising out of or related to this Agreement, the interpretation, making
performance, breach or termination thereof, shall be finally and exclusively
settled by binding arbitration to be held in New York, New York.  The arbitration shall be made in accordance
with the then current Commercial Arbitration Rules of the American Arbitration
Association and such arbitration shall be conducted by an arbitrator chosen by
mutual agreement of Buyer and Seller; failing such agreement, the arbitration
shall be conducted by 3 independent arbitrators, one chosen by Seller, one
chosen by Buyer and such two arbitrators shall mutually select a third
arbitrator, with any decision of two such arbitrators shall be binding; provided, however, if such arbitrators
fail to agree on a third arbitrator within 20 days, either Buyer or Seller
may make written application to Judicial Arbitration and Mediation Services (“JAMS”),
New York, New York, for the appointment of a single arbitrator (the “JAMS
Arbitrator”) to resolve the dispute by arbitration.  At the request of JAMS the parties involved
in the dispute shall meet with JAMS at its offices within 10 days of such
request to discuss the dispute and the qualifications and experience which each
party respectively believes the JAMS Arbitrator should have; provided, however, the selection of the JAMS Arbitrator
shall be the exclusive decision of JAMS and shall be made within 30 days
of the written application to JAMS.  The
arbitrator(s) shall have the authority to grant any equitable and legal
remedies that would be available in any judicial proceeding instituted under
New York law to resolve the dispute. 
Judgment upon the award rendered by the arbitrator may be entered in any
court having jurisdiction thereof.  Each
party shall pay its own costs and expenses (including counsel fees) of any such
arbitration.  The parties hereto
expressly waive all rights whatsoever to file an appeal against or otherwise to
challenge any award by the arbitrator(s) hereunder; provided, however, the foregoing shall not limit the rights
of either party to bring a proceeding in any applicable jurisdiction to
conform, enforce or enter judgment upon such award (and the rights of the other
party, if such proceeding is brought, to contest such confirmation, enforcement
or entry of judgment).

9.9           Injunctive Relief. 
Notwithstanding the above arbitration provision, nothing shall prevent
either party from seeking interim or injunctive relief from a court of
competent jurisdiction in order to protect its Intellectual Property Rights.

9.10         Section Headings. 
The section headings contained in this Agreement are inserted for
reference purposes only and are not intended to be a part, nor should they
affect the meaning or interpretation, of this Agreement.

9.11         Notices.  All
notices, requests, demands and other communications which are required or may
be given under this Agreement shall be in writing and shall be deemed to have
been duly given when received if personally delivered; when transmitted if
transmitted by telecopy, electronic or digital transmission method; the day
after it is sent, if sent for next day delivery to a domestic address by
recognized overnight delivery service (e.g., Federal Express); and upon
receipt, if sent by certified or registered mail, return receipt
requested.  In each case notice shall be
sent to:

	
  

  	
  If to Seller, addressed to:

  	
   

  
	
   

  	
  Silicon Laboratories Inc.

  	
   

  
	
   

  	
  400 West Cesar Chavez

  	
   

  
	
   

  	
  Austin, Texas 78701

  	
   

  
	
   

  	
  Attention: General Counsel

  	
   

  
	
   

  	
  Fax: (512) 428-1504

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
   

  
	
   

  	
  DLA Piper US LLP

  	
   

  
	
   

  	
  1221 South MoPac Expwy

  	
   

  
	
   

  	
  Suite 400

  	
   

  
	
   

  	
  Austin, Texas 78746

  	
   

  
	
   

  	
  Attention: Philip Russell, P.C.

  	
   

  
	
   

  	
  Fax: (512) 457-7001

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  If to Buyer, addressed to:

  	
   

  
	
   

  	
  NXP B.V.

  	
   

  
	
   

  	
  High Tech Campus 60

  	
   

  
	
   

  	
  5656 AG Eindhoven

  	
   

  
	
   

  	
  The Netherlands

  	
   

  
	
   

  	
  Attention: Guido R.C. Dierick

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
   

  
	
   

  	
  Simpson Thacher & Bartlett LLP

  	
   

  
	
   

  	
  425 Lexington Avenue

  	
   

  
	
   

  	
  New York 10017

  	
   

  
	
   

  	
  Attention: Lori Lesser

  	
   

  
	
   

  	
  Fax: (212) 455-2502

  	
   

  

 

or to such other
place and with such other copies as either party may designate as to itself by
written notice to the others.

9.12         Assignability.

9.12.1      Except
as provided in Section 9.12.2, neither party or its Subsidiaries may, directly
or indirectly, in whole or in part, assign or transfer this Agreement or its
rights or obligations hereunder, without the other party’s prior written
consent in its sole discretion.  Any
attempted assignment or transfer without such prior written consent shall be
void ab initio and of no force or effect.

 

 

9.12.2      Notwithstanding
Section 9.12.1, either party or its Subsidiaries may, without the consent of
the other party, assign this Agreement, in whole or in part (i) to a
Subsidiary; (ii) to an affiliate created due to an internal reorganization; or
(iii) in connection with one or more sales (including asset and/or equity
sales) of the businesses or a material portion thereof to which this Agreement
relates to the respective purchasers or acquirers thereof, provided that, in
the case of one or more partial assignments, the assigning party shall divest
all of its interest with respect to a particular country, jurisdiction and/or
field of use, such that no more than one person shall simultaneously hold the
license for any particular rights licensed hereunder.

9.12.3      In
the case of a Section 9.12.2(iii) assignment, (i) the licenses granted to the
assigning party hereunder may be assigned or sublicensed to such purchasers or
acquirers for use in their other businesses, subject to the same field of use
restrictions applicable to the assigning party; and (ii) the licenses granted
by the assigning party to the other party hereunder shall not be deemed to
include any other Intellectual Property Rights owned by the purchaser or
acquirer.

9.12.4      No
assignment or transfer made pursuant to this Section 9.12 shall release the
transferring or assigning party from any of its liabilities or obligations
hereunder.  Without limiting the
foregoing, in the event of a permitted assignment hereunder, this Agreement
will be binding upon and inure to the benefit of the parties and their
permitted successors and assigns.

9.12.5      Either
party or its Subsidiaries may assign, transfer, sell, or otherwise dispose of
any of the Intellectual Property Rights it has licensed to the other party and
its Subsidiaries hereunder, in whole or in part, provided that the assignee,
transferee or purchaser thereof must assume in writing the disposing party’s
obligations under this Agreement.  Any
attempted transaction in violation of the foregoing shall be void ab initio and of no force or effect.

9.12.6      For
the avoidance of doubt, notwithstanding any of the foregoing language in this
Section 9.12, the license in Section 3.2 is not assignable in any manner, in
whole or in part.

9.13         Severability. 
In the event that any one or more of the provisions contained in this
Agreement or in any other instrument referred to herein, shall, for any reason,
be held to be invalid, illegal or unenforceable in any respect, then to the
maximum extent permitted by law, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement or any
other such instrument.

9.14         Independent Contractors.  The parties are independent contractors and
there is no relationship of agency, partnership, joint venture, employment, or
franchise between the parties.  Neither
party has the authority to bind the other or to incur any obligation on its
behalf.

9.15         Remedies Cumulative. 
All rights and remedies of either party hereto are cumulative of each
other and of every other right or remedy such party may otherwise have at law
or in equity, and the exercise of one or more rights or remedies shall not
prejudice or impair the concurrent or subsequent exercise of other rights or
remedies.

9.16         Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

WHEREFORE, the parties
have signed this Intellectual Property License Agreement effective as of the
Closing Date.

	
  SILICON LABORATORIES INC.

  	
   

  	
  NXP BV

  
	
  ON
  BEHALF OF ITSELF AND ITS SUBSIDIARIES

  	
   

  	
  ON BEHALF OF ITSELF AND ITS SUBSIDIARIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SILICON
  LABORATORIES INTERNATIONAL PTE. LTD.

  	
   

  	
  NXP SEMICONDUCTORS FRANCE SAS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ON
  BEHALF OF ITSELF AND ITS SUBSIDIARIES

  	
   

  	
  ON BEHALF OF ITSELF AND ITS SUBSIDIARIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
											

 

SCHEDULE 1

(See attached.)

EXHIBIT D

TRANSITION SERVICES AGREEMENT

(See attached.)

EXHIBIT E

BILL OF SALE

(See attached.)

EXHIBIT F

INTELLECTUAL PROPERTY ASSIGNMENT
AGREEMENT

(See attached.)

 

SALE AND PURCHASE AGREEMENT

 

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.2

  	
   

  	
  Other Defined Terms

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
   

  	
  PURCHASE AND
  SALE OF ASSETS

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Closing

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  Transfer of Assets

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  Assumption of Liabilities

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.4

  	
   

  	
  Excluded Liabilities

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.5

  	
   

  	
  Purchase Price

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.6

  	
   

  	
  Purchase Price Adjustment

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.7

  	
   

  	
  Earn-Out.

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES OF SELLER

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Organization of Parent Seller

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  Subsidiaries

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.3

  	
   

  	
  Authorization

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.4

  	
   

  	
  Absence of Certain Changes

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.5

  	
   

  	
  Tangible Assets

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.6

  	
   

  	
  Facilities

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.7

  	
   

  	
  Contracts and Commitments

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.8

  	
   

  	
  No Conflict or Violation

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.9

  	
   

  	
  Financial Statements

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.10

  	
   

  	
  Litigation

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.11

  	
   

  	
  Labor Matters

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.12

  	
   

  	
  Compliance with Law

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.13

  	
   

  	
  Brokers

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.14

  	
   

  	
  Intellectual Property Rights

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.15

  	
   

  	
  Employee Benefit Plans

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.16

  	
   

  	
  Tax Matters

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.17

  	
   

  	
  Inventory

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.18

  	
   

  	
  Customers

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.19

  	
   

  	
  Environmental Matters

  	
   

  	
  26

  

 

 i
 

TABLE OF CONTENTS

(continued)

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  3.20

  	
   

  	
  Related Party Transactions

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.21

  	
   

  	
  Entire Business

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES OF BUYER

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Organization of Buyer

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.2

  	
   

  	
  Authorization

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  No Conflict or Violation

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.4

  	
   

  	
  No Brokers

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
   

  	
  COVENANTS OF
  SELLER AND BUYER

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Further Assurances

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  Conduct of Business

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Regulatory

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.4

  	
   

  	
  Employee Matters

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.5

  	
   

  	
  Exclusivity

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
   

  	
  CONDITIONS TO
  SELLER’S OBLIGATIONS

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  Representations, Warranties and Covenants

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.2

  	
   

  	
  No Actions or Court Orders

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.3

  	
   

  	
  Execution and Delivery of Ancillary Agreements

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.4

  	
   

  	
  Officer’s Certificate

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
   

  	
  CONDITIONS TO
  BUYER’S OBLIGATIONS

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Representations, Warranties and Covenants

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.2

  	
   

  	
  No Actions or Court Orders

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.3

  	
   

  	
  Execution and Delivery of Ancillary Agreements

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.4

  	
   

  	
  Officer’s Certificate

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.5

  	
   

  	
  Employees

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
   

  	
  CONSENTS TO
  ASSIGNMENT

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Consents to Assignment

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
   

  	
  ACTIONS BY
  SELLER AND BUYER AFTER THE CLOSING

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Books and Records

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  Indemnification

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3

  	
   

  	
  Tax Indemnity

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.4

  	
   

  	
  Non-Compete; Non-Solicitation

  	
   

  	
  37

  

 

 ii
 

TABLE OF CONTENTS

(continued)

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  9.5

  	
   

  	
  Tax Matters

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.6

  	
   

  	
  Litigation Support

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.7

  	
   

  	
  French Subsidiary

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Termination

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.2

  	
   

  	
  Assignment

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.3

  	
   

  	
  Notices

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.4

  	
   

  	
  Choice of Law

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.5

  	
   

  	
  Entire Agreement; Amendments and Waivers

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.6

  	
   

  	
  Multiple Counterparts

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.7

  	
   

  	
  Expenses

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.8

  	
   

  	
  Invalidity

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.9

  	
   

  	
  Performance by Subsidiaries

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.10

  	
   

  	
  Titles; Gender

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.11

  	
   

  	
  Public Statements and Press Releases

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.12

  	
   

  	
  Cumulative Remedies

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.13

  	
   

  	
  Service of Process

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.14

  	
   

  	
  Arbitration

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.15

  	
   

  	
  Investigation by Buyer

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.16

  	
   

  	
  Interpretation; Rules of Construction

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.17

  	
   

  	
  Knowledge

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.18

  	
   

  	
  Pre-Closing Transfers

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.19

  	
   

  	
  Schedules

  	
   

  	
  46

  

 

 

 iiiExhibit 10.1

EXECUTION COUNTERPART

 

CUSIP No. #                  

SECOND
AMENDED AND RESTATED

CREDIT AGREEMENT

Dated as of February 8,
2007

among

AFFILIATED
MANAGERS GROUP, INC.,

as Borrower,

BANK OF
AMERICA, N.A.,

as Administrative Agent and Swingline Lender,

THE BANK OF NEW YORK, JPMORGAN
CHASE BANK, N.A. and U.S. BANK NATIONAL
ASSOCIATION,

as Co-Syndication Agents,

CALYON NEW YORK BRANCH

and

CITIZENS BANK OF MASSACHUSETTS,

as Co-Documentation Agents,

and

The Several Lenders

from Time to Time Parties Hereto

 

BANC OF
AMERICA SECURITIES LLC

Sole Lead Arranger and Sole Book Manager

TABLE
OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINITIONS AND
  INTERPRETATION; ALLOCATION OF LOANS

  	
  1

  
	
  1.1.

  	
  Defined Terms

  	
  1

  
	
  1.2.

  	
  Other Definitional and Interpretive Provisions

  	
  18

  
	
  1.3.

  	
  Accounting Terms

  	
  19

  
	
  1.4.

  	
  Allocation of Loans and Commitments; Effect of
  Restatement

  	
  19

  
	
  SECTION 2.

  	
  AMOUNT AND TERMS
  OF COMMITMENTS; SWINGLINE LOANS

  	
  20

  
	
  2.1.

  	
  Commitments

  	
  20

  
	
  2.2.

  	
  Procedure for Borrowing

  	
  20

  
	
  2.3.

  	
  Increase of Commitments

  	
  21

  
	
  2.4.

  	
  Commitment Fee

  	
  22

  
	
  2.5.

  	
  Termination or Reduction of Commitments

  	
  22

  
	
  2.6.

  	
  Repayment of Loans; Evidence of Debt

  	
  22

  
	
  2.7.

  	
  Swingline Loans

  	
  23

  
	
  2.8.

  	
  Procedure for Swingline Borrowing and Prepayment;
  Refunding of Swingline Loans

  	
  23

  
	
  SECTION 3.

  	
  GENERAL
  PROVISIONS APPLICABLE TO THE LOANS

  	
  25

  
	
  3.1.

  	
  Optional Prepayments

  	
  25

  
	
  3.2.

  	
  Mandatory Commitment Reductions; Mandatory
  Prepayments

  	
  26

  
	
  3.3.

  	
  Conversion and Continuation Options

  	
  26

  
	
  3.4.

  	
  Minimum Amounts and Maximum Number of Tranches

  	
  27

  
	
  3.5.

  	
  Interest Rates and Payment Dates

  	
  27

  
	
  3.6.

  	
  Computation of Interest and Fees

  	
  27

  
	
  3.7.

  	
  Inability to Determine Interest Rate

  	
  28

  
	
  3.8.

  	
  Pro Rata Treatment and Payments

  	
  28

  
	
  3.9.

  	
  Illegality

  	
  29

  
	
  3.10.

  	
  Requirements of Law

  	
  30

  
	
  3.11.

  	
  Taxes

  	
  31

  
	
  3.12.

  	
  Indemnity

  	
  33

  
	
  3.13.

  	
  Change of Lending Office

  	
  33

  
	
  3.14.

  	
  Replacement of Lenders

  	
  33

  

 

 i
 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  34

  
	
  4.1.

  	
  Financial Condition

  	
  34

  
	
  4.2.

  	
  No Change

  	
  35

  
	
  4.3.

  	
  Corporate Existence; Compliance with Law

  	
  35

  
	
  4.4.

  	
  Corporate Power; Authorization; Enforceable
  Obligations

  	
  35

  
	
  4.5.

  	
  No Legal Bar

  	
  35

  
	
  4.6.

  	
  No Material Litigation

  	
  36

  
	
  4.7.

  	
  No Default

  	
  36

  
	
  4.8.

  	
  Ownership of Property; Liens

  	
  36

  
	
  4.9.

  	
  Taxes

  	
  36

  
	
  4.10.

  	
  Federal Regulations

  	
  36

  
	
  4.11.

  	
  ERISA

  	
  37

  
	
  4.12.

  	
  Investment Company Act; Investment Advisers Act

  	
  37

  
	
  4.13.

  	
  Subsidiaries and Other Ownership Interests

  	
  37

  
	
  4.14.

  	
  Use of Proceeds

  	
  37

  
	
  4.15.

  	
  Accuracy and Completeness of Information

  	
  38

  
	
  4.16.

  	
  Pledge Agreements

  	
  38

  
	
  SECTION 5.

  	
  CONDITIONS
  PRECEDENT

  	
  38

  
	
  5.1.

  	
  Conditions to Effectiveness

  	
  38

  
	
  5.2.

  	
  Conditions to Each Loan

  	
  40

  
	
  SECTION 6.

  	
  AFFIRMATIVE COVENANTS

  	
  41

  
	
  6.1.

  	
  Financial Statements

  	
  41

  
	
  6.2.

  	
  Certificates; Other Information

  	
  41

  
	
  6.3.

  	
  Payment of Obligations

  	
  44

  
	
  6.4.

  	
  Conduct of Business and Maintenance of Existence

  	
  44

  
	
  6.5.

  	
  Maintenance of Property; Insurance

  	
  45

  
	
  6.6.

  	
  Inspection of Property; Books and Records;
  Discussions

  	
  45

  
	
  6.7.

  	
  Notices

  	
  45

  
	
  6.8.

  	
  Pledges

  	
  46

  
	
  6.9.

  	
  Guarantees

  	
  47

  
	
  SECTION 7.

  	
  NEGATIVE
  COVENANTS

  	
  47

  
	
  7.1.

  	
  Financial Condition Covenants

  	
  47

  

 

 ii
 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  7.2.

  	
  Limitation on Debt

  	
  48

  
	
  7.3.

  	
  Limitation on Liens

  	
  49

  
	
  7.4.

  	
  Limitation on Fundamental Changes

  	
  50

  
	
  7.5.

  	
  Limitation on Sale of Assets

  	
  51

  
	
  7.6.

  	
  Limitation on Leases

  	
  51

  
	
  7.7.

  	
  Limitation on Transactions with Affiliates

  	
  51

  
	
  7.8.

  	
  Limitation on Certain Payments

  	
  52

  
	
  7.9.

  	
  Limitation on Changes in Fiscal Year

  	
  52

  
	
  7.10.

  	
  Limitations on Investments in Unrestricted
  Subsidiaries

  	
  52

  
	
  7.11.

  	
  Limitation on Investments by Unrestricted
  Subsidiaries

  	
  52

  
	
  SECTION 8.

  	
  EVENTS OF
  DEFAULT

  	
  52

  
	
  SECTION 9.

  	
  THE
  ADMINISTRATIVE AGENT

  	
  55

  
	
  9.1.

  	
  Appointment and Authorization

  	
  55

  
	
  9.2.

  	
  Rights as a Lender

  	
  55

  
	
  9.3.

  	
  Exculpatory Provisions

  	
  55

  
	
  9.4.

  	
  Reliance by Administrative Agent

  	
  56

  
	
  9.5.

  	
  Delegation of Duties

  	
  56

  
	
  9.6.

  	
  Resignation of Administrative Agent

  	
  56

  
	
  9.7.

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
  57

  
	
  9.8.

  	
  Administrative Agent May File Proofs of Claim

  	
  57

  
	
  9.9.

  	
  Collateral and Guaranty Matters

  	
  58

  
	
  9.10.

  	
  Other Agents; Arranger and Managers

  	
  58

  
	
  SECTION 10.

  	
  MISCELLANEOUS

  	
  59

  
	
  10.1.

  	
  Amendments and Waivers

  	
  59

  
	
  10.2.

  	
  Notices

  	
  60

  
	
  10.3.

  	
  No Waiver; Cumulative Remedies

  	
  61

  
	
  10.4.

  	
  Survival of Representations and Warranties

  	
  61

  
	
  10.5.

  	
  Expenses; Indemnity; Waiver of Damages

  	
  61

  
	
  10.6.

  	
  Successors and Assigns; Participations and
  Assignments

  	
  63

  
	
  10.7.

  	
  Adjustments; Set-off

  	
  65

  
	
  10.8.

  	
  Counterparts

  	
  65

  
	
  10.9.

  	
  Severability

  	
  66

  

 

 iii
 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  10.10.

  	
  Integration

  	
  66

  
	
  10.11.

  	
  GOVERNING LAW

  	
  66

  
	
  10.12.

  	
  Submission To Jurisdiction; Waivers

  	
  66

  
	
  10.13.

  	
  Acknowledgements

  	
  67

  
	
  10.14.

  	
  WAIVERS OF JURY TRIAL

  	
  67

  
	
  10.15.

  	
  Confidentiality

  	
  67

  
	
  10.16.

  	
  Designation of Subsidiaries as Restricted or
  Unrestricted

  	
  68

  
	
  10.17.

  	
  Effect of Amendment and Restatement

  	
  68

  
	
  10.18.

  	
  USA Patriot Act

  	
  68

  

 

ANNEX

 

	
  Annex I

  	
  —

  	
  Pricing Grid

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  
	
   

  
	
  Schedule I

  	
  —

  	
  Lender Commitments

  
	
  Schedule 4.1

  	
  —

  	
  Financial Condition

  
	
  Schedule 4.2

  	
  —

  	
  Changes in Capital Stock

  
	
  Schedule 4.9

  	
  —

  	
  Taxes

  
	
  Schedule 4.13

  	
  —

  	
  Subsidiaries and Other Ownership Interests

  
	
  Schedule 7.2(g)

  	
  —

  	
  Existing Indebtedness

  
	
  Schedule 7.3(j)

  	
  —

  	
  Existing Liens

  
	
  Schedule 7.7

  	
  —

  	
  Transactions with Affiliates

  
	
  Schedule 10.2

  	
  —

  	
  Addresses

  

 

EXHIBITS

 

	
  Exhibit A

  	
  —

  	
  Form of Note

  
	
  Exhibit B-1

  	
  —

  	
  Copy of Borrower Pledge Agreement

  
	
  Exhibit B-2

  	
  —

  	
  Copy of Subsidiary Pledge Agreement

  
	
  Exhibit C

  	
  —

  	
  Form of Borrower Certificate

  
	
  Exhibit D

  	
  —

  	
  Form of Opinion of Borrower’s Counsel

  
	
  Exhibit E

  	
  —

  	
  Form of Assignment and Assumption

  
	
  Exhibit F

  	
  —

  	
  Form of Confidentiality Agreement

  
	
  Exhibit G

  	
  —

  	
  Terms and Conditions of Subordinated Indebtedness

  
	
  Exhibit H

  	
  —

  	
  Form of Compliance Certificate

  
	
  Exhibit I

  	
  —

  	
  Form of Borrowing Notice

  
	
  Exhibit J

  	
  —

  	
  Form of Conversion/Continuation Notice

  
	
  Exhibit K

  	
  —

  	
  Form of Confirmation

  
	
  Exhibit L

  	
  —

  	
  Form of Joinder Agreement

  
	
  Exhibit M

  	
  —

  	
  Form of Designation Certificate

  
	
  Exhibit N

  	
  —

  	
  Form of Subsidiary Guaranty

  

 

 iv

SECOND AMENDED AND
RESTATED CREDIT AGREEMENT

This SECOND AMENDED AND
RESTATED CREDIT AGREEMENT dated as of February 8, 2007 is among Affiliated
Managers Group, Inc., a Delaware corporation (the “Borrower”),
the several banks and other financial institutions from time to time parties to
this Agreement (the “Lenders”), Bank of
America, N.A. (“Bank of America”), as Administrative Agent, JPMorgan
Chase Bank, N.A. and U.S. Bank National Association, as Co-Syndication Agents,
The Bank of New York, Calyon New York Branch and Citizens Bank of
Massachusetts, as Co-Documentation Agents.

W I T N E S S E T H :

WHEREAS, the Borrower,
various financial institutions and Bank of America, as administrative agent,
are parties to an Amended and Restated Credit Agreement dated as of December 5,
2005 (the “Existing Credit Agreement”);
and

WHEREAS, the parties
hereto have agreed to amend and restate the Existing Credit Agreement pursuant
to this Agreement;

NOW, THEREFORE, the
parties hereto agree as follows:

SECTION
1.  DEFINITIONS AND INTERPRETATION;
ALLOCATION OF LOANS

1.1.          Defined
Terms.  As used in this
Agreement, the following terms shall have the following meanings:

“ABR” means,
for any day, a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for
such day as publicly announced from time to time by Bank of America as its “prime
rate.”  The “prime rate” is a rate set by
Bank of America based upon various factors including Bank of America’s costs
and desired return, general economic conditions and other factors, and is used
as a reference point for pricing some loans, which may be priced at, above or
below such announced rate.  Any change in
such rate announced by Bank of America shall take effect at the opening of
business on the day specified in the public announcement of such change.

“ABR Loan”
means a Loan that bears interest at a rate based upon the ABR.

“Acquisition”
means the acquisition by the Borrower, directly or indirectly, of equity
interests in an Investment Firm.

“Adjusted Consolidated EBITDA” means, for any
Computation Period, Consolidated EBITDA for such Computation Period adjusted by
giving effect on a pro forma basis to Acquisitions and dispositions
completed during such Computation Period.

“Administrative Agent”
means Bank of America in its capacity as administrative agent under this
Agreement and the other Loan Documents, or any successor administrative agent.

“Administrative Agent’s Office” means the
Administrative Agent’s address and, as appropriate, account as set forth on Schedule
10.2, or such other address or account as the Administrative Agent may from
time to time notify the Borrower and the Lenders.

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

“Affiliate”
means as to any Person, any other Person which, directly or indirectly, is in
control of, is controlled by, or is under common control with, such
Person.  For purposes of this definition,
“control” of a Person means the power, directly or indirectly, either to (a)
vote 10% or more of the securities having ordinary voting power for the
election of directors of such Person or (b) direct or cause the direction of
the management and policies of such Person, whether by contract or otherwise.

“Agent Parties” is defined in Section
10.2(d).

“Agreement”
means this Amended and Restated Credit Agreement.

“Applicable Margin”
means with respect to Eurodollar Loans and ABR Loans, from time to time, the
rate per annum set forth under the headings “Applicable Margin for Eurodollar
Loans” and “Applicable Margin for ABR Loans,” respectively, on Annex I based upon the Debt Rating.

“Arranger” means Banc of America Securities
LLC, in its capacity as sole lead arranger and sole book manager.

“Asset Sale”
means any sale, issuance, conveyance, transfer, lease or other disposition,
including by way of merger, consolidation or sale and leaseback transaction
(any of the foregoing, a “transfer”), directly or indirectly, in one or a series
of related transactions, of (i) all or substantially all of the properties and
assets (other than marketable securities, including “margin stock” within the
meaning of Regulation U, liquid investments and other financial instruments) of
the Borrower or any Restricted Subsidiary, or (ii) any other properties or
assets of the Borrower or any Restricted Subsidiary, other than in the ordinary
course of business, to any Person other than the Borrower or any Restricted
Subsidiary.  For the purposes of this definition,
the term “Asset Sale” shall not include (a) any transfer of properties and
assets to the extent that the gross proceeds to the Borrower and its Restricted
Subsidiaries from the transfer thereof do not exceed (i) $10,000,000 in any
single transaction or series of related transactions, taken as a whole, or (ii)
$25,000,000 (irrespective of the size of the individual transactions) in the
aggregate for all such transactions on or after the Closing Date, and (b) any
transfer of the Capital Stock of any Investment Firm or any Restricted
Subsidiary to one or more partners, officers, directors, shareholders,
employees or members (or any entity owned or controlled by one or more of such
Persons) of an Investment Firm which is a Restricted Subsidiary or in which the
Borrower or a

 2
 

Restricted Subsidiary has
an ownership interest (any such transfer described in this clause (b), a
“Shareholder Asset Sale”).

“Assignee” is
defined in Section 10.6(c).

“Attorney Costs” means and includes all
reasonable and documented fees, expenses and disbursements of any law firm or
other external counsel and, to the extent not duplicative of services performed
by external counsel, the reasonable and documented allocated cost of internal
legal services and all reasonable and documented expenses and disbursements of
internal counsel.

“Available Commitment”
means as to any Lender at any time, an amount equal to the excess, if any, of
(a) the amount of such Lender’s Commitment over (b) the aggregate principal
amount of all outstanding Revolving Loans made by such Lender plus, for
all purposes other than Section 2.4,
its Commitment Percentage of all outstanding Swingline Loans.

“Bank of America” is defined in the preamble
and includes any successor thereto.

“Borrower” is
defined in the preamble and includes any successor thereto.

“Borrower Materials” is defined in Section
6.2.

“Borrower Pledge Agreement” means the pledge
agreement dated as of August 7, 2002 by the Borrower in favor of the
Administrative Agent, a copy of which (as in effect on the date hereof) is
attached as Exhibit B-1.

“Borrowing Date”
means any Business Day specified in a notice pursuant to Section 2.2 or 2.8
as a date on which the Borrower requests the Lenders or the Swingline Lender to
make Loans hereunder.

“Business Day”
means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the laws of, or are in fact closed in, the
state where the Administrative Agent’s Office is located, Boston, Massachusetts
or New York, New York, and, if such day relates to any Eurodollar Rate Loan,
means any such day on which dealings in Dollar deposits are conducted by and
between banks in the London interbank eurodollar market.

“Capital Securities”
means the “Preferred Securities” issued in connection with (and as defined in)
the Capital Trust Indenture.

“Capital Stock”
means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent
ownership interests in a Person (other than a corporation) and any and all
warrants or options to purchase any of the foregoing.

 3
 

“Capital Trust” means AMG Capital Trust I, a
special purpose Delaware statutory trust established by the Borrower, of which
the Borrower holds all of the common securities and other securities having the
power to vote generally.

“Capital Trust
Indenture” means the Indenture dated as of April 3, 2006 between the
Borrower and LaSalle Bank National Association, as Debenture Trustee.

“Cash Equivalent” means, at any time, (a) any
evidence of indebtedness, maturing not more than one year after such time,
issued or guaranteed by the United States Government or any agency thereof, (b)
commercial paper, maturing not more than one year from the date of issue, or
corporate demand notes, in each case (unless issued by a Lender or its holding
company) rated at least A-1 or A-2 by S&P or P-1 or P-2 by Moody’s (or
carrying an equivalent rating by an internationally-recognized rating agency),
(c) any certificate of deposit (or time deposits represented by such
certificates of deposit) or banker’s acceptance, maturing not more than one
year after such time, or overnight Federal Funds transactions or money market
deposit accounts that are issued or sold by, or maintained with, a commercial
bank or financial institution incorporated under the laws of the United States,
any state thereof or the District of Columbia which is rated at least A-1 or
A-2 by S&P or P-l or P-2 by Moody’s (or carrying an equivalent rating by an
internationally-recognized rating agency), (d) any repurchase agreement entered
into with a commercial bank or financial institution meeting the requirements
of clause (c) which (i) is secured by a fully perfected security
interest in any obligation of the type described in any of clauses (a)
through (c) and (ii) has a market value at the time such repurchase
agreement is entered into of not less than 100% of the repurchase obligation of
such commercial bank or financial institution thereunder, (e) securities with
maturities of six months or less from the date of acquisition backed by standby
letters of credit issued by any commercial bank or financial institution
meeting the requirements of clause (c), (f) any short-term (or readily
marketable or immediately redeemable) investment in a structured investment
vehicle, structured investment deposit or similar instrument with a financial
strength rating of A by S&P or Moody’s or (g) shares of money market mutual
or similar funds which invest primarily in assets satisfying the requirements
of clauses (a) through (f) of this definition.

“Change of Control”
shall be deemed to occur on any date on which any Person or “group” (within the
meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934) shall
have acquired beneficial ownership of Capital Stock having 30% or more of the
ordinary voting power in the election of directors of the Borrower.

“Closing Date”
means the date on which the conditions precedent set forth in Section 5.1
shall be satisfied.

“COBRAs” means the Floating Rate Senior
Convertible Debentures due 2033 issued by the Borrower on February 25, 2003.

“Code” means
the Internal Revenue Code of 1986.

 4
 

“Commitment”
means, as to any Lender, the obligation of such Lender to make Loans to the
Borrower hereunder and to participate in Swingline Loans in an aggregate
principal amount at any one time outstanding not to exceed the amount set forth
opposite such Lender’s name on Schedule I under the heading “Commitment”,
as such amount may be increased or reduced from time to time in accordance with
the provisions of this Agreement.  As of
the date of this Agreement, the aggregate amount of the Commitments of all
Lenders is $650,000,000.

“Commitment Fee Rate”
means, from time to time, the rate per annum set forth under the heading “Commitment
Fee Rate” on Annex I based upon the
Debt Rating.

“Commitment Percentage”
means as to any Lender at any time, the percentage (expressed as a decimal,
carried out to nine decimal places) which such Lender’s Commitment then
constitutes of the aggregate Commitments (or, at any time after the Commitments
shall have expired or terminated, the percentage which (a) the aggregate
principal amount of such Lender’s Revolving Loans then outstanding plus
(b) its Percentage of any Swingline Loans, constitutes of the aggregate
principal amount of the Loans then outstanding).

“Commitment Period”
means the period from the date hereof to the Termination Date or such earlier
date on which the Commitments shall terminate as provided herein.

“Commonly Controlled
Entity” means an entity, whether or not incorporated, which is under
common control with the Borrower within the meaning of Section 4001 of ERISA or
is part of a group which includes the Borrower and which is treated as a single
employer under Section 414 of the Code.

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

“Computation Period” means each period of four
consecutive fiscal quarters ending on the last day of a fiscal quarter.

“Consolidated EBITDA”
means for any period the consolidated EBITDA of the Borrower and its Restricted
Subsidiaries for such period.

“Consolidated Interest
Expense” means, for any period, the amount of interest expense of
the Borrower and, to the extent payable out of Free Cash Flow (and not
Operating Cash Flow) under the relevant Revenue Sharing Agreement, its
Restricted Subsidiaries payable in cash on a consolidated basis, net of the
portion thereof attributable to minority interests, for such period.

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

“Debt Rating”
means, as of any date of determination, the rating by S&P of the Borrower’s
non-credit-enhanced, senior unsecured long-term debt; provided that (a)
if

 

 5
 

Fitch or Moody’s (but not both) also has a rating for such
debt, then the Debt Rating shall be the higher of the ratings by the two applicable
rating agencies (unless the difference between such rating agencies would be
two or more Levels in the pricing
grid attached as Annex 1, in which case the Debt Rating shall be the
midpoint between such ratings or, if there is no single midpoint, the higher of
the two Levels at the midpoint between such ratings); and (b) if both Fitch and
Moody’s also have ratings for such debt, then (i) if two rating agencies
have the same rating and the third rating agency has a different rating, then
one of the rating agencies with the same rating shall be disregarded, and (ii)
if all three rating agencies have different ratings, then the middle rating
shall be disregarded and, in the case of both clause (i) and clause
(ii), the Debt Rating shall be calculated in accordance with clause (a)
above; (c) if such debt is not rated by S&P because S&P no longer
provides debt ratings generally, then, (1) if either Fitch or Moody’s has a
rating for such debt, then the rating by such rating agency shall apply, or (2)
if both Fitch and Moody’s have a rating for such debt, then the provision of clause
(a) above shall be used to determine the Debt Rating or (3) if neither
Fitch or Moody’s has a rating for such debt then the Debt Rating shall be
deemed to be at the lowest Level on the pricing grid and (d) if such
debt is not rated by S&P but S&P continues to provide debt ratings
generally, then the Debt Rating shall be deemed to be at the lowest Level on
the pricing grid.

“Default”
means any of the events specified in Section 8, whether or not any
requirement for the giving of notice, the lapse of time, or both, has been
satisfied.

“Default Rate” means an interest rate equal to
(a) the ABR plus (b) the Applicable Margin, if any, applicable to ABR
Loans plus (c) 2% per annum; provided that with respect to a
Eurodollar Loan, the Default Rate shall be an interest rate equal to (i) the
Eurodollar Rate applicable to such Loan plus (ii) the Applicable Margin
applicable to Eurodollar Loans plus (iii) 2% per annum.

“Defaulting Lender” is defined in Section
3.8(c).

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

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

“EBITDA”
means, for any Person for any period, the sum (without duplication) of the
amount for such Person for such period of (a) its net income before taxes and
(b) to the extent deducted in determining its net income, (i) its interest
expense (including capitalized interest expense), (ii) its depreciation
expense, (iii) its amortization expense and (iv) its Non-Cash Based
Compensation Costs.

“Environmental Law” means any Federal, state,
local or foreign statute, law, regulation, ordinance, rule, judgment, order,
decree, permit, concession, grant, franchise, license, agreement or governmental
restriction relating to pollution or the protection of the environment or the
release of any material into the environment, including any of the foregoing
related to hazardous substances or wastes, air emissions or discharges to waste
or public systems.

 6
 

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

“ERISA” means
the Employee Retirement Income Security Act of 1974.

“Eurodollar Loan”
means a Loan that bears interest at a rate based upon the Eurodollar Rate.

“Eurodollar Rate” means, for any Interest
Period with respect to any Eurodollar Loan, a rate per annum determined by the
Administrative Agent pursuant to the following formula:

	
  Eurodollar Rate =

  	
  Eurodollar Base Rate

  	
   

  
	
   

  	
  1.00 - Eurodollar
  Reserve Percentage

  	
   

  

 

Where,

“Eurodollar Base Rate”
means, for such Interest Period:

(a)           the rate per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
Reuters (or another commercially available source providing quotations of BBA
LIBOR as designated by the Administrative Agent from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest
Period; or

(b)           if the rate described in clause
(a) is not available at such time for any reason, the rate per annum determined
by the Administrative Agent to be the rate at which deposits in Dollars for
delivery on the first day of such Interest Period in same day funds in the
approximate amount of the Eurodollar Loan being made, continued or converted by
Bank of America and with a term equivalent to such Interest Period would be
offered by Bank of America’s London Branch to major banks in the London
interbank eurodollar market at their request at approximately 11:00 a.m.
(London time) two Business Days prior to the commencement of such Interest
Period.

“Eurodollar Reserve Percentage” means, for any
day during any Interest Period, the reserve percentage (expressed as a decimal,
carried out to five decimal places) in effect on such day, whether or not
applicable to any particular Lender, under regulations issued from time to time
by the FRB for determining the maximum reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) with

 7
 

respect to Eurodollar
funding (currently referred to as “Eurocurrency liabilities”).  The Eurodollar Rate for each outstanding
Eurodollar Loan shall be adjusted automatically as of the effective date of any
change in the Eurodollar Reserve Percentage.

“Event of Default”
means any of the events specified in Section 8.

“Existing Credit Agreement” is defined in the
recitals.

“Existing Lender” means a “Lender” under and as
defined in the Existing Credit Agreement immediately prior to the Closing Date.

“Federal Funds Rate” means, for any day, the
rate per annum equal to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published by the Federal Reserve Bank on
the Business Day next succeeding such day; provided that (a) if such day
is not a Business Day, the Federal Funds Rate for such day shall be such rate
on such transactions on the next preceding Business Day, and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds
Rate for such day shall be the average rate (rounded upward, if necessary, to a
whole multiple of 1/100 of 1%) charged to Bank of America on such day on such
transactions as determined by the Administrative Agent.

“Feline Prides II” means the equity security
units originally issued by the Borrower on February 17, 2004, consisting of (a)
interest bearing senior notes due February 17, 2010 (“Feline Prides II
Senior Notes”) and (b) purchase contracts under which each purchaser of a
Feline Prides II agrees to purchase common stock of the Borrower for an amount
equal to the face amount of the Feline Prides II Senior Notes held by such
purchaser on February 17, 2008.

“Feline Prides II Senior Notes” is defined in
the definition of Feline Prides II.

“Financing Lease”
means any lease of property, real or personal, the obligations of the lessee in
respect of which are required in accordance with GAAP to be capitalized on a
balance sheet of the lessee.

“Financial Statements” is defined in Section
4.1.

“Fitch” means Fitch, Inc., doing business as
Fitch Ratings.

“Foreign Subsidiary” means any Subsidiary that
is not organized under the laws of, and does not conduct the majority of its
business in, the United States, any state thereof or the District of Columbia.

“FP Replacement Debt” is defined in Section
7.2(g).

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

 8
 

“Free Cash Flow”
means distributions due and payable to the Borrower by and from an Investment
Firm under the Revenue Sharing Agreement applicable to such Investment Firm,
including the Borrower’s allocated share of “Free Cash Flow” or “Owners’
Allocation” as such terms are defined in certain Revenue Sharing Agreements.

“Funds” means
the collective reference to all Investment Companies and other investment
accounts or funds (in whatever form and whether personal or corporate) for
which any Subsidiary or Investment Firm provides advisory, management or
administrative services.

“GAAP” means
generally accepted accounting principles in the United States of America in
effect from time to time.

“Governmental Authority”
means 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 Obligation”
means as to any Person (the “guaranteeing person”),
any obligation of (a) the guaranteeing person or (b) another Person (including
any bank under any letter of credit) with respect to which the guaranteeing
person has issued a reimbursement, counterindemnity or similar obligation, in
any such case guaranteeing or in effect guaranteeing any Indebtedness, leases,
dividends or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in any manner, whether
directly or indirectly, including any obligation of the guaranteeing person,
whether or not contingent, (i) to purchase any such primary obligation or any
property constituting direct or indirect security therefor, (ii) to advance or
supply funds (1) for the purchase or payment of any such primary obligation or
(2) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor, (iii)
to purchase property, securities or services primarily for the purpose of
assuring the owner of any such primary obligation of the ability of the primary
obligor to make payment of such primary obligation or (iv) otherwise to assure
or hold harmless the owner of any such primary obligation against loss in
respect thereof; provided that the term
Guarantee Obligation shall not include endorsements of instruments for deposit
or collection in the ordinary course of business.  The amount of any Guarantee Obligation of any
guaranteeing person shall be deemed to be the lower of (a) an amount equal to
the stated or determinable amount of the primary obligation in respect of which
such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing
person may be liable pursuant to the terms of the instrument embodying such
Guarantee Obligation, unless such primary obligation and the maximum amount for
which such guaranteeing person may be liable are not stated or determinable, in
which case the amount of such Guarantee Obligation shall be such guaranteeing
person’s maximum reasonably anticipated liability in respect thereof as
determined by the Borrower in good faith.

“Hazardous Materials”
means all explosive or radioactive substances or wastes and all hazardous or
toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated

 9
 

biphenyls,
radon gas, infectious or medical wastes and all other substances or wastes of
any nature regulated pursuant to any Environmental Law.

“Increase Effective Date” is defined in Section
2.3(a).

“Increasing Lender” is defined in Section
2.3(b).

“Increase Request” is defined in Section
2.3(a).

“Increase Response Date” is defined in Section
2.3(a).

“Indebtedness”
means, as to any Person at any date and without duplication, (a) all
indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services (other than current trade liabilities incurred in
the ordinary course of business and payable in accordance with customary
practices), (b) any other indebtedness of such Person which is evidenced by a
note, bond, debenture or similar instrument (including the Feline Prides II
Senior Notes), (c) all obligations of such Person under Financing Leases, (d)
all obligations of such Person in respect of acceptances issued or created for
the account of such Person, (e) all obligations of such Person under
noncompetition agreements reflected as liabilities on a balance sheet of such
Person in accordance with GAAP, (f) all liabilities secured by any Lien on any
property owned by such Person even though such Person has not assumed or
otherwise become liable for the payment thereof, (g) all net obligations of such
Person under interest rate, commodity, foreign currency and financial markets
swaps, options, futures and other hedging obligations (valued, at such date, in
accordance with the Borrower’s customary practices, as approved by its
independent certified public accountants), (h) all Guarantee Obligations of
such Person in respect of any Indebtedness (as defined above) of any other
Person and (i) all Indebtedness (as defined above) of any partnership or joint
venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or joint venturer,
unless such Indebtedness is expressly made non-recourse to such Person.  For purposes of the foregoing definition,
with regard to a Subsidiary, the term “Indebtedness” shall include only a
percentage of its Indebtedness equal to the percentage of the Borrower’s direct
and indirect ownership interest in such Subsidiary.  For the avoidance of doubt, the term “Indebtedness”
shall not include (i) Synthetic Lease Obligations, (ii) any Guarantee
Obligations in respect of Synthetic Lease Obligations or (iii) any liabilities
secured by any Lien in connection with Synthetic Lease Obligations.

“Indemnitee” is defined in Section 10.05.

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

“Insolvent”
means pertaining to a condition of Insolvency.

“Interest Payment Date”
means (a) as to any ABR Loan, the last Business Day of each March, June,
September and December, (b) as to any Eurodollar Loan, (i) the last day of each
Interest Period therefor, (ii) if any Interest Period is longer than three
months,

 10
 

each three-month
anniversary of the first day of such Interest Period and (iii) the date of any
prepayment thereof.

“Interest Period”
means, with respect to any Eurodollar Loan:

(i)  initially,
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan and ending one or two weeks or one, two,
three or six months thereafter (or such other period as is requested by the
Borrower and consented to by all Lenders and the Administrative Agent), as
selected by the Borrower in its notice of borrowing or notice of conversion, as
the case may be, given with respect thereto; and

(ii) 
thereafter, each period commencing on the last day of the next preceding
Interest Period applicable to such Eurodollar Loan and ending one or two weeks
or one, two, three or six months thereafter (or such other period as is
requested by the Borrower and consented to by all Lenders and the
Administrative Agent), as selected by the Borrower by irrevocable notice to the
Administrative Agent not less than three Business Days prior to the last day of
the then current Interest Period with respect thereto;

provided that the foregoing provisions
relating to Interest Periods are subject to the following:

(1)  if any
Interest Period would otherwise end on a day that is not a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless
the result of such extension would be to carry such Interest Period into
another calendar month in which event such Interest Period shall end on the
immediately preceding Business Day;

(2)  the
Borrower may not select any Interest Period that would extend beyond the
scheduled Termination Date; and

(3)  unless
otherwise agreed by the Borrower, all Lenders and the Administrative Agent, any
Interest Period (other than a one or two week Interest Period) that begins on
the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the appropriate subsequent
calendar month.

“Investment Advisers Act”
means the Investment Advisers Act of 1940.

“Investment Company”
means an “investment company” as such term is defined in the Investment Company
Act.

“Investment Company Act”
means the Investment Company Act of 1940.

“Investment Firm”
means any Subsidiary or other Person (other than an Unrestricted Subsidiary)
engaged, directly or indirectly, primarily in the business (the

 11
 

“Investment Management
Business”) of providing investment advisory, management, distribution or
administrative services to Funds (or investment accounts or funds which will be
included as Funds after the Borrower acquires a direct or indirect interest in
such other Person) and in which the Borrower, directly or indirectly (other
than through one or more Unrestricted Subsidiaries), has purchased or otherwise
acquired, or has entered into an agreement to purchase or otherwise acquire,
Capital Stock or other interests entitling the Borrower, directly or indirectly
(other than through one or more Unrestricted Subsidiaries), to a share of the
revenues, earnings or value thereof.

“Investment Management Business” is defined in
the definition of “Investment Firm.”

“Joinder Agreement” is defined in Section
2.3(c).

“Junior Subordinated
Debentures” means the 5.10% Junior Subordinated Convertible Debentures due
April 15, 2036 issued by the Borrower to the Capital Trust in exchange for the
proceeds of the issuance of the Capital Securities and certain related common
trust securities.

“Lenders” is
defined in the preamble (and such term includes the Swingline Lender).

“Leverage Ratio” means, as of any date, the
ratio of (a) the remainder of Total Indebtedness minus all (but not more
than $50,000,000) cash and Cash Equivalents of the Restricted Loan Parties, in
each case as of such date, to (b) Adjusted Consolidated EBITDA for the
Computation Period ending on (or, if such date is not the last day of a
Computation Period, most recently prior to) such date.

“Lien” means
any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge or other security interest or any preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including any conditional sale or other title retention
agreement and any Financing Lease or synthetic lease having substantially the
same economic effect as any of the foregoing).

“Loan Documents”
means this Agreement, any Notes, the Pledge Agreements and the Subsidiary
Guaranty.

“Loan Parties” means the Restricted Loan
Parties and each Unrestricted Subsidiary that is a Subsidiary Guarantor.

“Loans” means
the Revolving Loans and the Swingline Loans.

“Material Adverse Effect”
means a material adverse effect on (a) the business, operations, property or
condition (financial or otherwise) of the Borrower and its Restricted
Subsidiaries taken as a whole, (b) the ability of the Borrower to perform its
obligations under any Loan Document to which it is a party or (c) the validity
or

 12
 

enforceability against
any Loan Party of any Loan Document to which it is a party or the rights or
remedies of the Administrative Agent or the Lenders hereunder or thereunder.

“Moody’s” means Moody’s Investors Service, Inc.
and any successor thereto.

“Multiemployer Plan”
means a Plan which is a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

“Net Proceeds”
means, with respect to any Asset Sale or Shareholder Asset Sale, the net amount
equal to the aggregate amount received (including by way of deferred payment
pursuant to a note receivable, other non-cash consideration or otherwise) in
connection with such Asset Sale or Shareholder Asset Sale minus the sum of (a) the reasonable fees,
commissions and other out-of-pocket expenses incurred by the Borrower or any
Restricted Subsidiary, as applicable, in connection with such Asset Sale or
Shareholder Asset Sale (other than amounts payable to Affiliates of the Person
making such disposition), (b) federal, state and local taxes incurred in
connection with such Asset Sale or Shareholder Asset Sale, whether or not
payable at such time and (c) reasonable reserves for indemnification
obligations and working capital or other purchase price adjustments in
connection with such Asset Sale or Shareholder Asset Sale that are maintained in accordance with GAAP,
provided that (i) such reserves do not exceed 10% of the purchase price for
such Asset Sale or Shareholder Asset Sale and (ii) concurrently with any
reduction in the amount of any such reserve (excluding any reduction resulting
from a payment to the applicable buyer or that has previously been accounted
for pursuant to clause (iii) below), the Borrower shall be deemed to
have received “Net Proceeds” in an amount equal to such reduction and (iii) any
reserve for working capital or similar purchase price adjustments shall, solely
for purposes of determining “Net Proceeds”, be deemed to be reduced to zero on
the date that is 270 days after the closing of the applicable Asset Sale and
the Borrower shall be deemed to have received “Net Proceeds” in the amount of
such reduction on such date. For purposes of the foregoing definition, with
regard to a Restricted Subsidiary, the term “Net Proceeds” shall include only
that portion of its Net Proceeds representing the percentage of its Net
Proceeds equal to the percentage of the Borrower’s ownership interest in such
Restricted Subsidiary (or, if less in the case of any Asset Sale by a
Restricted Subsidiary, the portion to which the Borrower is entitled under any
relevant Revenue Sharing Agreement or other operating agreement with or with
respect to such Restricted Subsidiary).

“Non-Cash Based
Compensation Costs” means for any period, the amount of non-cash
expense or costs computed under APB No. 25 and related interpretations or FAS
123 and related interpretations, which relate to the issuance of interests in
the Borrower, any Restricted Subsidiary or any Investment Firm.

“Non-Excluded Taxes”
is defined in Section 3.11(a).

“Note” is
defined in Section 2.6(e).

“Operating Cash Flow”
means either “Operating Cash Flow” or “Operating Allocation” as defined in the
relevant Revenue Sharing Agreement; provided that if such

 13
 

term is not defined in
any Relevant Sharing Agreement, Operating Cash Flow shall mean all revenues
other than Free Cash Flow (as defined in this Agreement) for the applicable
Investment Firm.

“Participants”
is defined in Section 10.6(b).

“PBGC” means
the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of
Title IV of ERISA.

“Percentage” means for any Lender the
percentage (carried to the ninth decimal place) set forth under the heading “Percentage”
on Schedule I, as adjusted from time to time due to changes in such
Lender’s Commitment and in the aggregate Commitments in accordance with the
provisions of this Agreement.

“Person” means
an individual, partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

“Plan” means
at a particular time, any employee benefit plan which is covered by ERISA and
in respect of which the Borrower or a Commonly Controlled Entity is (or, if
such plan were terminated at such time, would under Section 4069 of ERISA be
deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Platform” is defined in Section 6.2.

“Pledge Agreements”
means, collectively, the Borrower Pledge Agreement and the Subsidiary Pledge
Agreement.

“Pledge Agreement
Supplement” means a Pledge Agreement Supplement substantially in the form
of Annex I to Exhibit B-1 or B-2, as applicable.

“Pledged Collateral”
is defined in each Pledge Agreement.

“Public Lender” is defined in Section 6.2.

“Refunded Swingline Loans”
is defined in Section 2.8(b).

“Refunding Date”
is defined in Section 2.8(c).

“Register” is
defined in Section 10.6(d).

“Regulation U”
means Regulation U of the FRB.

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

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

 14

“Reportable Event”
means a reportable event as defined in Section 4043 of ERISA and the
regulations issued under such section with respect to a Plan, excluding such
events as to which the PBGC by regulation waived the requirements of Section
4043(a) of ERISA that it be notified within 30 days of the occurrence of such
event; provided that a failure to meet the minimum funding standard of
Section 412 of the Code and of Section 302 of ERISA shall be a Reportable Event
regardless of the issuance of any such waiver of the notice requirement in
accordance with either Section 4043(a) of ERISA or Section 412(d) of the Code.

“Required Lenders”
means, at any time, Lenders with Commitment Percentages aggregating more than
50%, disregarding the Commitment Percentage of any Defaulting Lender so long as
such Lender is treated equally with the other Lenders with respect to any
action resulting from any consent or approval of the Required Lenders.

“Requirement of Law”
means, as to any Person, 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 to which
such Person or any of its property is subject.

“Responsible Officer”
means each of the chief executive officer, the president, any executive vice
president, any senior vice president or any vice president of the Borrower or,
with respect to financial matters, the senior financial officer of the
Borrower, in each case acting singly.

“Restricted Loan Party” means the Borrower and
each Restricted Subsidiary that is a party to a Loan Document.  

“Restricted Subsidiary” means any Subsidiary
that is not an Unrestricted Subsidiary.

“Revenue Sharing
Agreement” means each agreement entered into by the Borrower or a
Restricted Subsidiary with an Investment Firm pursuant to which a specified
percentage of the revenue of such Investment Firm is distributed among such
Investment Firm’s partners, shareholders or members, pro
rata in accordance with such partners’,
shareholders’ or members’ ownership percentages in such Investment Firm (such
percentage being referred to in certain Revenue Sharing Agreements as “Free
Cash Flow” or “Owners’ Allocation”), or any other agreement providing for the
distribution of income, revenue or assets of an Investment Firm.

“Revolving Loans” is defined in Section
2.1(a).

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

“Securities Acts”
means the Securities Act of 1933 and the Securities Exchange Act of 1934.

“Shareholder Asset Sale” is defined in the
definition of Asset Sale.

 15
  
 

“Single Employer Plan”
means any Plan which is covered by Title IV of ERISA, but which is not a
Multiemployer Plan.

“Specified Percentage” is defined in the
definition of Total Indebtedness.

“Subordinated
Indebtedness” means (a) Indebtedness of the Borrower and/or any
Restricted Subsidiary under any Subordinated Payment Note, (b) the Junior
Subordinated Debentures and (c) other Indebtedness of the Borrower or any
Restricted Subsidiary which has maturities and other terms, and which is
subordinated to the obligations of the Borrower and its Restricted Subsidiaries
hereunder and under the other Loan Documents in a manner, approved in writing
by the Required Lenders.

“Subordinated Payment
Note” means any unsecured note evidencing Indebtedness or other
obligations issued to a seller in connection with an Acquisition of an
Investment Firm or the acquisition by an Unrestricted Subsidiary of any other
Person or in connection with an increase of the Borrower’s direct or indirect
ownership interest in an Investment Firm or, through an Unrestricted
Subsidiary, any other Person, in each case as permitted hereunder, (i) for
which the Borrower and/or any other Restricted Loan Party is directly,
primarily or contingently liable, (ii) the payment of the principal of and
interest on which and other obligations of the Borrower or such other
Restricted Loan Party in respect of which are subordinated to the prior payment
in full of the principal of and interest (including post-petition
interest whether or not allowed as a claim in any proceeding) on the Loans and
all other obligations and liabilities of the Borrower or such other Restricted
Loan Party to the Administrative Agent and the Lenders hereunder, and (iii)
which has terms and conditions that are generally consistent with the terms and
conditions of subordination set forth in Exhibit G or in the
corresponding Exhibit to any predecessor to this Agreement as in effect at the
time the form of such note was agreed upon with such seller (with any variation
to such terms and conditions that is adverse to the Lenders being subject to
approval by the Administrative Agent) or otherwise satisfactory in form and
substance to the Required Lenders.  For
the avoidance of doubt, the term “Subordinated Payment Notes” includes the
Subordinated Promissory Notes issued by The Managers Funds LLC, a
majority-owned subsidiary of the Borrower, pursuant to the Purchase Agreement
dated May 22, 2000 by and among the Borrower, The Managers Funds LLC and Smith
Breeden Associates, Inc. and any contingent consideration issuable by the
Borrower in a form substantially the same as the form of contingent
consideration described in the Friess Associates, LLC Amended and Restated LLC
Agreement dated August 28, 2001.

“Subsidiary”
means, as to any Person, a corporation, partnership, limited liability company
or other entity of which Capital Stock having ordinary voting power (other than
Capital Stock having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or other managers of
such corporation, partnership, limited liability company or other entity is at
the time owned, or the management of which is otherwise controlled, directly or
indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Borrower. 

 16
  
 

“Subsidiary Guarantor” means any Subsidiary
that (a) is not required to pledge any equity interests pursuant to Section
6.8, but (b) is required to guaranty the obligations of the Borrower
hereunder pursuant to Section 6.9.

“Subsidiary Guaranty” means a guaranty
substantially in the form of Exhibit N.

“Subsidiary Pledge
Agreement” means the Subsidiary Pledge Agreement dated as of August
7, 2002 made by various Subsidiaries in favor of the Administrative Agent, a
copy of which (as in effect on the date hereof) is attached as Exhibit B-2.

“Supermajority Lenders”
means at any time, Lenders with Commitment Percentages aggregating at least
66-2/3%, disregarding the Commitment Percentage of any Defaulting Lender so
long as such Lender is treated equally with the other Lenders with respect to
any action resulting from any consent or approval of the Supermajority Lenders.

“Swingline Amount”
means the lesser of $15,000,000 and the aggregate amount of the Commitments.

“Swingline Lender”
means Bank of America in its capacity as the lender of the Swingline Loans, or
any successor swingline lender hereunder.

“Swingline Loans”
is defined in Section 2.7(a).

“Swingline Participation
Amount” is defined in Section 2.8(c).

“Synthetic Lease Obligation” means the monetary
obligations of a Person under (a) a so-called synthetic, off-balance sheet or
tax retention lease, or (b) an agreement for the use or possession of property
creating obligations that do not appear on the balance sheet of such Person but
which, upon the insolvency or bankruptcy of such Person, would be characterized
as indebtedness of such Person (without regard to accounting treatment).

“Termination Date”
means February 8, 2012, or any earlier date when the Commitments terminate.

“Total Indebtedness”
means, at any time, the sum of (a) the aggregate principal amount (including
capitalized interest) of all Indebtedness of the Borrower and its Restricted
Subsidiaries (including the Loans, the Zero-Coupon Bonds, purchase money
obligations, amounts payable under noncompetition agreements and the pro-rata
share (based on ownership percentage) of the funded Indebtedness of any entity
(other than any Unrestricted Subsidiary) in which the Borrower or any
Restricted Subsidiary has a minority interest if the income from such entity is
included in “Income from equity method investments” in the Borrower’s
consolidated financial statements and (b) if the aggregate amount of all
Unrestricted Subsidiary Obligations for which the Borrower or any Restricted
Subsidiary has any Guarantee Obligations exceeds $25,000,000, all Unrestricted
Subsidiary Obligations that have the benefit of any such Guarantee Obligation; provided
that Total Indebtedness shall not include (a) Subordinated Payment Notes, (b)
Indebtedness of the Borrower owing to any Restricted Subsidiary, (c)

 17
  
 

Indebtedness of any
Restricted Subsidiary owing to the Borrower or any other Restricted Loan Party,
(d) prior to February 18, 2008, the Specified Percentage (as defined below) of
the principal amount of the Feline Prides II Senior Notes, (e) net obligations
under interest rate, commodity, foreign currency or financial market swaps,
options, futures and other hedging obligations and (f) 80% of the Junior
Subordinated Debentures.  For purposes of
clause (d) above, “Specified Percentage” means (i) 85% at any time prior
to February 17, 2007 and (ii) 90% thereafter.

“Tranche”
means the collective reference to Eurodollar Loans having Interest Periods that
began or will begin on the same date and end on the same later date (whether or
not such Loans shall originally have been made on the same day).

“Transferee”
is defined in Section 10.6(f).

“Type” means,
as to any Loan, its nature as an ABR Loan or a Eurodollar Loan.

“Unrestricted Subsidiary” means any Subsidiary
(a) created or acquired (directly or indirectly) by the Borrower after November
1, 2006; (b) that is designated by the Borrower as an Unrestricted Subsidiary
after the date hereof in accordance with Section 10.16; and (c) that has
not subsequently been designated by the Borrower as a Restricted Subsidiary in
accordance with Section 10.16.

“Unrestricted Subsidiary Obligations” means,
with respect to any Unrestricted Subsidiary, all obligations of such
Unrestricted Subsidiary, including, without duplication, all Indebtedness of
such Unrestricted Subsidiary, all Guarantee Obligations of such Unrestricted
Subsidiary, all obligations of such Unrestricted Subsidiary in respect of
letters of credit, all accounts payable of such Unrestricted Subsidiary, all
lease obligations of such Unrestricted Subsidiary (including Synthetic Lease
Obligations), all obligations of such Unrestricted Subsidiary under purchase
agreements, put agreements or similar arrangements and all other liabilities of
such Unrestricted Subsidiary for the payment of money, in each case whether
absolute or contingent and whether on or off balance sheet.  The amount of any Unrestricted Subsidiary
Obligation under any operating lease shall be calculated as if such lease were
a capital lease.

“Zero-Coupon Bonds”
means the senior unsecured convertible zero-coupon bonds due 2021 issued by the
Borrower on May 7, 2001.

1.2.          Other
Definitional and Interpretive Provisions.  (a) 
Unless otherwise specified therein, all terms defined in this Agreement
shall have the defined meanings when used in any Notes or any certificate or
other document made or delivered pursuant hereto.

(b)  When used with reference to a period of time,
the word “from” means “from and including” and the word “to” means “to but excluding”.

(c)  The term “including” is not limiting and
means “including without limitation.”

 18
  
 

(d)  Unless otherwise expressly provided herein,
(i) references to agreements (including this Agreement) and other contractual
instruments shall be deemed to include all subsequent amendments and other
modifications thereto, but only to the extent such amendments and other
modifications are not prohibited by the terms of any Loan Document;
(ii) references to any statute or regulation are to be construed as including
all statutory and regulatory provisions and rules consolidating, amending,
replacing, supplementing or interpreting such statute or regulation; and (iii)
references to “fiscal year” and “fiscal quarter” mean the relevant fiscal
period of the Borrower. 

(e)  Section, subsection, clause,
Annex, Schedule and Exhibit references are to this
Agreement unless otherwise specified.

(f)  The meanings given to terms defined herein
shall be equally applicable to both the singular and plural forms of such
terms.

1.3.          Accounting Terms.  

(a)  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the audited
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as
at December 31, 2005 and the related audited consolidated statements of income
and of cash flows for the fiscal year ended on such date, audited by
PricewaterhouseCoopers LLP, except as otherwise specifically prescribed herein.

(b)  If at any time any change in GAAP would
affect the computation of any financial ratio or requirement set forth in any
Loan Document, and either the Borrower or the Required Lenders shall so
request, the Administrative Agent, the Lenders and the Borrower shall negotiate
in good faith to amend such ratio or requirement to preserve the original
intent thereof in light of such change in GAAP (subject to the approval of the
Required Lenders); provided that, until so amended, (i) such ratio or
requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (ii) the Borrower shall provide to the Administrative Agent
and the Lenders financial statements and other documents required under this
Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP.

1.4.          Allocation
of Loans and Commitments; Effect of Restatement.

(a)  The Borrower and each Lender agree that,
effective as of the Closing Date, this Agreement amends and restates in its
entirety the Existing Credit Agreement. 
At the Closing Date, the Commitments shall be allocated in accordance
with the terms hereof and each Lender shall have a direct or participation share
equal to its Percentage of all outstanding Loans.

(b)  To facilitate allocation described in clause
(a), on the Closing Date, (i) all loans under the Existing Credit Agreement
shall be deemed to be Loans hereunder, (ii) each Lender that is a party to the
Existing Credit Agreement shall transfer to the Administrative Agent

 19
  
 

an amount equal to the excess, if any, of such Lender’s
Percentage of all outstanding Loans hereunder (including any Loans requested by
the Borrower on the Closing Date) over the amount of all of such Lender’s loans
under the Existing Credit Agreement, (iii) each Lender that is not a party to
the Existing Credit Agreement shall transfer to the Administrative Agent an
amount equal to such Lender’s Percentage of all outstanding Loans hereunder
(including any Loans requested by the Borrower on the Closing Date), (iv) the
Administrative Agent shall apply the funds received from the Lenders pursuant
to clauses (ii) and (iii), first, on behalf of the Lenders
(pro rata according to the amount of the loans each is required to purchase to
achieve the allocation described in clause (a), to purchase from each
Existing Lender that is not a party hereto the loans of such Existing Lender
under the Existing Credit Agreement (and, if applicable to purchase from any
Existing Lender that is a party hereto but that has loans under the Existing
Credit Agreement in excess of such Lender’s Percentage of all then-outstanding
Loans hereunder (including any Loans requested by the Borrower on the Closing
Date), a portion of such loans equal to such excess), second, to pay to
each Existing Lender all interest, fees and other amounts (including amounts
payable pursuant to Section 3.12 of the Existing Credit Agreement, assuming for
such purpose that the loans under the Existing Credit Agreement were prepaid
rather than reallocated at the Closing Date) owed to such Existing Lender under
the Existing Credit Agreement (whether or not otherwise then due) and, third,
as the Borrower shall direct, and (v) the Borrower shall select new Interest
Periods to apply to all Revolving Loans hereunder (or, to the extent the
Borrower fails to do so, such Revolving Loans shall be, continue as or become
ABR Loans).

(c)  The Borrower and the Lenders that are
Existing Lenders (which Lenders constitute the “Required Lenders” under and as
defined in the Existing Credit Agreement) agree that, concurrently with the
effectiveness hereof, the Existing Credit Agreement shall be amended and
restated hereby and shall thereafter be of no further force or effect (except
for provisions thereof that by their terms survive termination thereof).

SECTION
2.  AMOUNT AND TERMS OF COMMITMENTS;
SWINGLINE LOANS

2.1.          Commitments.  (a) 
Subject to the terms and conditions hereof, each Lender severally agrees
to make revolving credit loans (“Revolving Loans”) (provided that any repricing or conversion of
an outstanding Revolving Loan shall not be considered a making of a Revolving
Loan) to the Borrower from time to time during the Commitment Period in an
aggregate principal amount at any one time outstanding not to exceed the amount
of such Lender’s Commitment; provided that no Lender shall be obligated
to make a Revolving Loan if, after giving effect to the making of such
Revolving Loan, such Lender’s Available Commitment would be less than
zero.  During the Commitment Period the
Borrower may use the Commitments by borrowing, prepaying the Revolving Loans in
whole or in part, and reborrowing, all in accordance with the terms and
conditions hereof.

(b)  The Revolving Loans may from time to time be
(i) Eurodollar Loans, (ii) ABR Loans or (iii) a combination thereof, as
determined by the Borrower and notified to the Administrative Agent in
accordance with Sections 2.2 and 3.3. 

2.2.          Procedure
for Borrowing.  The Borrower
may borrow under the Commitments during the Commitment Period on any Business
Day; provided that the Borrower

 20
  
 

shall give the Administrative Agent irrevocable
written notice, in substantially the form of Exhibit I (which notice
must be received by the Administrative Agent prior to 11:00 a.m., New York City
time, (a) three Business Days prior to the requested Borrowing Date, if all or
any part of the requested Revolving Loans are to be initially Eurodollar Loans
or (b) on the requested Borrowing Date, if all of the requested Loans are to be
initially ABR Loans), in each case specifying (i) the amount to be borrowed,
(ii) the requested Borrowing Date, (iii) whether the borrowing is to be of
Eurodollar Loans, ABR Loans or a combination thereof and (iv) if the borrowing
is to be entirely or partly of Eurodollar Loans, the respective amounts of each
such Type of Loan and the respective lengths of the initial Interest Periods
for such Eurodollar Loans.  Each
borrowing of ABR Loans (other than Swingline Loans) shall be in an amount equal
to $1,000,000 or a higher integral multiple of $100,000, and each borrowing of
Eurodollar Loans shall be in an amount equal to $5,000,000 or a higher integral
multiple of $1,000,000.  Upon receipt of
any such notice from the Borrower, the Administrative Agent shall promptly
notify each Lender thereof.  Each Lender
will make the amount of its pro rata share of each borrowing available to the
Administrative Agent for the account of the Borrower at the Administrative
Agent’s Office prior to 1:00 p.m., New York City time, on the Borrowing Date
requested by the Borrower in funds immediately available to the Administrative
Agent.  Such borrowing will then be made
available to the Borrower by the Administrative Agent crediting the account of
the Borrower on the books of such office with the aggregate of the amounts made
available to the Administrative Agent by the Lenders and in like funds as
received by the Administrative Agent. 
The failure of any Lender to make a Revolving Loan to be made by it as
part of any borrowing shall not relieve any other Lender of its obligation to
make available its share of such borrowing.

2.3.          Increase
of Commitments.  (a)  The Borrower may from time to time (but not
more than five times), so long as no Default exists, request an increase in the
aggregate amount of the Commitments by delivering a written request (an “Increase Request”) to the Administrative
Agent and the Lenders; provided
that the aggregate amount of all increases in the amount of the Commitments
pursuant to this Section 2.3 shall not exceed $150,000,000.  Any Increase Request shall specify (i) the
date (the “Increase Response Date”) by which any Lender or prospective
Lender that is willing to increase its Commitment must respond to such request,
(ii) the date (the “Increase Effective Date”)
on which the requested increase is to become effective (which shall be at least
five Business Days after the related Increase Response Date) and (iii) the
amount of the requested increase (which shall be $10,000,000 or a higher
integral multiple of $1,000,000).  No
Lender shall be obligated to increase its commitment pursuant to any Increase
Request.

(b)  Not later than the Increase Response Date for
an Increase Request, any Lender or prospective Lender that is willing to
increase its Commitment in response to such Increase Request (an “Increasing
Lender”) shall notify the Borrower and the Administrative Agent of the
amount by which such Lender or prospective Lender is willing to increase its
Commitment (which amount shall be an integral multiple of $1,000,000).  On the first Business Day after the Increase
Response Date, the Administrative Agent shall notify the Increasing Lenders of
the amounts of their respective increases (it being understood that if the aggregate
amount of increased Commitments offered pursuant to an Increase Request exceeds
the amount requested, the Borrower, in consultation with the Administrative
Agent, may (subject to the limitation in clause (a) above) accept all or
any portion of such excess offered Commitments and/or allocate the increases in
the Commitments among the Increasing Lenders). 
On the

 21
  
 

applicable Increase Effective Date, the Commitment of
each Increasing Lender shall be increased by the amount offered by (or, if
applicable, allocated to) such Increasing Lender and the aggregate amount of
the Commitments shall be increased (and the Commitment Percentages adjusted)
accordingly.  

(c)  If any Increasing Lender is not a Lender
prior to the related Increase Effective Date, such Increasing Lender shall be
subject to approval by the Borrower and the Administrative Agent (such approval
not to be unreasonably withheld or delayed) and such Increasing Lender, the
Borrower and the Administrative Agent shall sign and deliver a joinder agreement
(a “Joinder Agreement”), substantially
in form and substance as Exhibit L, pursuant to which such Increasing
Lender shall become a party to this Agreement.

(d)  The parties hereto agree that,
notwithstanding any other provision of this Agreement, the Administrative
Agent, the Borrower, each Increasing Lender and each other Lender, as
applicable, may make arrangements reasonably satisfactory to such parties to
cause an Increasing Lender to temporarily hold risk participations in the
Revolving Loans of the other Lenders (rather than fund its Commitment
Percentage of all outstanding Revolving Loans concurrently with the applicable
increase) with a view toward minimizing breakage costs and transfers of funds
in connection with any increase in the aggregate amount of the
Commitments.  The Borrower acknowledges
that if (despite any arrangements established pursuant to the foregoing
sentence), as a result of a non-pro-rata increase in the aggregate amount of
the Commitments, any Eurodollar Loans must be prepaid or converted (in whole or
in part) on a day other than the last day of an Interest Period therefor, then
such prepayment or conversion shall be subject to the provisions of Section
3.12.

2.4.          Commitment
Fee.  The Borrower agrees to
pay to the Administrative Agent for the account of each Lender a commitment fee
for the period from the first day of the Commitment Period to the Termination
Date, computed at the Commitment Fee Rate on the actual amount of the Available
Commitment of such Lender for each day during the period for which payment is
made, payable quarterly in arrears on the last day of each March, June,
September and December and on the Termination Date.

2.5.          Termination
or Reduction of Commitments. 
The Borrower shall have the right, upon not less than five Business Days’
notice to the Administrative Agent, to terminate the Commitments or, from time
to time, to reduce the aggregate amount of the Commitments to an amount that is
not less than the aggregate principal amount of all outstanding Loans.  Any such reduction shall be in an amount
equal to $5,000,000 or a whole multiple thereof and shall reduce permanently
the Commitments then in effect. Upon receipt of any such notice, the
Administrative Agent shall promptly notify each Lender thereof.

2.6.          Repayment
of Loans; Evidence of Debt. 
(a)  The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of
each Lender the then unpaid principal amount of each Loan of such Lender on the
Termination Date (or such earlier date on which the Loans become due and
payable pursuant to Section 8). 
The Borrower hereby further agrees to pay interest on the unpaid
principal amount of the Loans from time to time outstanding from the date
hereof until payment in full thereof at the rates per annum, and on the dates,
set forth in Section 3.5.

 22
  
 

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

(c)  The Administrative Agent shall maintain the
Register pursuant to Section 10.6(d), and a subaccount therein for each Lender,
in which shall be recorded (i) the amount and Type of each Loan made hereunder
and each Interest Period for each Eurodollar Loan, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder from the Borrower and each Lender’s share
thereof.

(d)  The entries made in the Register and the
accounts of each Lender maintained pursuant to Section 2.6(b) shall, to
the extent permitted by applicable law, be prima
facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded; provided
that the failure of any Lender or the Administrative Agent to maintain the
Register or any such account, or any error therein, shall not in any manner
affect the obligation of the Borrower to repay (with applicable interest) the
Loans made to the Borrower by such Lender in accordance with the terms of this
Agreement.

(e)  The Borrower agrees that, upon the request to
the Administrative Agent by any Lender, the Borrower will sign and deliver to
such Lender a promissory note of the Borrower evidencing the Loans of such
Lender, substantially in the form of Exhibit A with appropriate
insertions as to date and principal amount (a “Note”).

2.7.          Swingline Loans.

(a)  Subject to the terms and conditions hereof,
the Swingline Lender may (in its sole and absolute discretion) make a portion
of the credit otherwise available to the Borrower under the Commitments
available from time to time during the Commitment Period by making swing line
loans (“Swingline Loans”) to the
Borrower; provided that (i) the
aggregate principal amount of Swingline Loans outstanding at any time shall not
exceed the Swingline Amount and (ii) the Borrower shall not request, and the
Swingline Lender shall not make, any Swingline Loan if, after giving effect to
the making of such Swingline Loan, the aggregate amount of the Available
Commitments would be less than zero. 
During the Commitment Period, the Borrower may borrow, repay, and
reborrow Swingline Loans, subject to the agreement of the Swingline Lender and
in accordance with the terms and conditions hereof.  All Swingline Loans shall be ABR Loans.

(b)  The Borrower shall repay all outstanding
Swingline Loans on the Termination Date.

2.8.          Procedure
for Swingline Borrowing and Prepayment; Refunding of Swingline Loans.

(a)  Whenever the Borrower desires that the
Swingline Lender make Swingline Loans it shall give the Swingline Lender and the
Administrative Agent irrevocable telephonic notice confirmed promptly in
writing (which telephonic notice must be

 23
  
 

received by the Swingline
Lender and the Administrative Agent not later than 1:00 p.m., New York City
time, on the proposed Borrowing Date), specifying (i) the amount to be borrowed
and (ii) the requested Borrowing Date (which shall be a Business Day during the
Commitment Period).  Each Swingline Loan
shall be in an amount equal to $500,000 or a higher integral multiple of
$50,000.  Unless the Swingline Lender has
received notice (by telephone or in writing) from the Administrative Agent
(including at the request of any Lender) prior to 1:15 p.m., New York City
time, on the proposed Borrowing Date (A) directing the Swingline Lender not to
make such Swingline Loan as a result of the limitations set forth in Section
2.7(a)(ii) or (B) that one or more of the applicable conditions specified
in Section 5 is not then satisfied, then, subject to the terms and
conditions hereof, the Swingline Lender may (in its sole and absolute
discretion), not later than 3:00 p.m., New York City time, on the proposed
Borrowing Date, make available to the Administrative Agent at the
Administrative Agent’s Office an amount in immediately available funds equal to
the amount of the Swingline Loan to be made by the Swingline Lender.  The Administrative Agent shall make the
proceeds of any such Swingline Loan available to the Borrower by depositing
such proceeds in the account of the Borrower with the Administrative Agent on
such Borrowing Date in immediately available funds.

(b)  The Swingline Lender may, at any time and
from time to time in its sole and absolute discretion, on behalf of the
Borrower (which hereby irrevocably authorizes the Swingline Lender to act on
its behalf), request each Lender to make, and each Lender hereby agrees to
make, a Revolving Loan (which shall be an ABR Loan), in an amount equal to such
Lender’s Commitment Percentage of the aggregate amount of the Swingline Loans
(the “Refunded Swingline Loans”)
outstanding on the date of such notice, to repay the Swingline Lender.  Such request shall be made in writing and in
accordance with the requirements of Section 2.2, without regard to the
minimum and multiples specified therein for the principal amount of Revolving
Loans.  Each Lender shall make the amount
of such Revolving Loan available to the Administrative Agent at the
Administrative Agent’s Office in immediately available funds, not later than
1:00 p.m. New York City time, on the Borrowing Date specified by the Swingline
Lender.  The proceeds of such Revolving
Loans shall be immediately made available by the Administrative Agent to the
Swingline Lender for application by the Swingline Lender to the repayment of
the Refunded Swingline Loans.  The Borrower
irrevocably authorizes the Swingline Lender to charge the Borrower’s accounts
with the Administrative Agent (up to the amount available in each such account)
in order to immediately pay the amount of such Refunded Swingline Loans to the
extent amounts received from the Lenders are not sufficient to repay in full
such Refunded Swingline Loans.

(c)  If prior to the time a Revolving Loan would
have otherwise been made pursuant to Section 2.8(b), one of the events
described in Section 8(f) shall have occurred and be continuing with
respect to the Borrower or if for any other reason, as determined by the
Administrative Agent in its sole discretion, Revolving Loans may not be made as
contemplated by Section 2.8(b), each Lender shall, on the date such
Revolving Loan was to have been made pursuant to the notice referred to in Section
2.8(b) (the “Refunding Date”),
purchase for cash an undivided participating interest in the then outstanding
Swingline Loans by paying to the Swingline Lender an amount (the “Swingline

 24
  
 

Participation Amount”) equal
to (i) such Lender’s Commitment Percentage times
(ii) the sum of the aggregate principal amount of Swingline Loans then
outstanding that were to have been repaid with such Revolving Loans.

(d)  Whenever, at any time after the Swingline
Lender has received from any Lender such Lender’s Swingline Participation
Amount, the Swingline Lender receives any payment on account of the Swingline
Loans, the Swingline Lender will distribute to such Lender its Swingline
Participation Amount (appropriately adjusted, in the case of interest payments,
to reflect the period of time during which such Lender’s participating interest
was outstanding and funded and, in the case of principal and interest payments,
to reflect such Lender’s pro rata portion of such payment if such payment
is not sufficient to pay the principal of and interest on all Swingline Loans
then due); provided that in the event
that such payment received by the Swingline Lender is required to be returned,
such Lender will return to the Swingline Lender any portion thereof previously
distributed to it by the Swingline Lender.

(e)  Each Lender’s obligation to make the
Revolving Loans referred to in Section 2.8(b) and to purchase
participating interests pursuant to Section 2.8(c) shall be absolute and
unconditional and shall not be affected by any circumstance, including (i) any
setoff, counterclaim, recoupment, defense or other right that such Lender or
the Borrower may have against the Swingline Lender, the Borrower or any other
Person for any reason whatsoever; (ii) the existence of a Default or the
failure to satisfy any of the other conditions specified in Section 5;
(iii) any adverse change in the condition (financial or otherwise) of the
Borrower; (iv) any breach of this Agreement or any other Loan Document by any
Loan Party or any other Lender; or (v) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.

(f)  The Borrower may from time to time prepay
Swingline Loans , in whole or in part, without premium or penalty, upon
irrevocable notice to the Administrative Agent and the Swingline Lender not
later than 11:00 a.m., New York City time on the date of prepayment, specifying
the date and amount of prepayment. 
Partial prepayments of Swingline Loans shall be in an aggregate
principal amount of $500,000 or a higher integral multiple of $50,000, and
after giving effect to any such prepayment the aggregate principal amount of
all Swingline Loans shall not be less than $500,000.

SECTION
3.  GENERAL PROVISIONS APPLICABLE TO THE
LOANS

3.1.          Optional
Prepayments.  The Borrower may
at any time and from time to time prepay the Revolving Loans, in whole or in
part, without premium or penalty, upon irrevocable notice to the Administrative
Agent, at least three Business Days’ prior to the date of prepayment if all or
any part of the Revolving Loans to be prepaid are Eurodollar Loans, and at
least one Business Day prior to the date of prepayment if all of the Revolving
Loans to be prepaid are ABR Loans, specifying the date and amount of prepayment
and whether the prepayment is of Eurodollar Loans, ABR Loans or a combination
thereof, and, if of a combination thereof, the amount allocable to each.  Upon receipt of any such notice, the
Administrative Agent shall promptly notify each Lender thereof.  If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified
therein, together

 25
  
 

with any amounts payable pursuant to Section 3.12.  Partial prepayments of ABR Loans (other than
Swingline Loans) shall be in an aggregate principal amount of $1,000,000 or a
higher integral multiple of $100,000, and partial prepayments of Eurodollar
Loans shall be in an aggregate principal amount of $5,000,000 or a higher integral
multiple of $1,000,000.

3.2.          Mandatory
Commitment Reductions; Mandatory Prepayments.  (a)  Concurrently with (i) any Asset
Sale and (ii) any Shareholder Asset Sale with respect to an Investment Firm or
other Restricted Subsidiary in which the Borrower holds, directly or
indirectly, in excess of a 50% ownership interest, if, after giving effect to
such Shareholder Asset Sale, the Borrower does not continue to hold, directly
or indirectly, in excess of a 50% equity ownership interest in the relevant Investment
Firm or Restricted Subsidiary, the aggregate amount of the Commitments shall be
permanently reduced by the excess (rounded down, if necessary, to an integral
multiple of $5,000,000), if any, of the aggregate amount of the Net Proceeds of
all Asset Sales and all such Shareholder Asset Sales made after the Closing
Date (excluding any portion of such amount previously applied to reduce the
Commitments pursuant to this Section 3.2)over$200,000,000;
provided that the requirements of this clause (a) shall not apply
to Net Proceeds from any Asset Sale or Shareholder Asset Sale to the extent
that the Borrower notifies the Administrative Agent prior to or concurrently
with the receipt of such Net Proceeds that such Net Proceeds are intended to be
used, and such Net Proceeds are in fact used, to purchase similar assets within
270 days after such Asset Sale or Shareholder Asset Sale; it being
understood that any such Net Proceeds shall be applied as set forth above
(without giving effect to this proviso) on the earlier of (a) the 271st day after such sale if not so used prior to
such date and (b) the date on which the Borrower notifies the Administrative
Agent that it does not intend to use such Net Proceeds as set forth in this
proviso.

(b)  If, as a result of the reduction of the
Commitments pursuant to clause (a), the aggregate principal amount of
the Loans exceeds the aggregate amount of the Commitments, the Borrower shall
immediately prepay Loans in the amount of such excess.  All prepayments of Loans pursuant to this Section 3.2(b) shall be made without premium
or penalty (but shall be subject to Section 3.12) and shall be
accompanied by accrued and unpaid interest on the principal amount being
prepaid.  All such prepayments shall be
applied as directed in writing by the Borrower or, in the absence of such
direction, first, to prepay Swingline Loans until the Swingline Loans
are paid in full, second, to prepay Revolving Loans that are ABR Loans
until such Loans are paid in full and, third, to prepay Eurodollar
Loans.

3.3.          Conversion
and Continuation Options. 
(a)  The Borrower may elect from
time to time to convert Eurodollar Loans to ABR Loans by giving the
Administrative Agent at least two Business Days’ prior irrevocable written
notice, substantially in the form of Exhibit J, of such election; provided
that any such conversion of Eurodollar Loans may only be made on the last day
of an Interest Period with respect thereto. 
The Borrower may elect from time to time to convert ABR Loans (other
than ABR Loans which are Swingline Loans) to Eurodollar Loans by giving the
Administrative Agent at least three Business Days’ prior irrevocable written
notice, substantially in the form of Exhibit J, of such election.  Any such notice of conversion to Eurodollar
Loans shall specify the length of the initial Interest Period or Interest
Periods therefor.  Upon receipt of any
such notice, the Administrative Agent shall promptly notify each Lender
thereof.  All or any part of outstanding
Eurodollar Loans and ABR Loans may be converted as provided herein; provided
that no Loan may be converted into a Eurodollar Loan when any

 26
  

Event of Default has occurred and is continuing and
the Administrative Agent has or the Required Lenders have determined that such
a conversion is not appropriate.

(b)  Any Eurodollar Loans may be continued as such
upon the expiration of the then current Interest Period with respect thereto by
the Borrower giving written notice, substantially in the form of Exhibit J,
to the Administrative Agent, in accordance with the applicable provisions of
the term “Interest Period” set forth in Section 1.1, of the length of
the next Interest Period to be applicable to such Loans; provided
that no Eurodollar Loan may be continued as such when any Event of Default has
occurred and is continuing and the 
Administrative Agent has notified the Borrower that the Required Lenders
have determined that such a continuation is not appropriate; and provided, further, that (i) if the
Borrower fails to give such notice or if such continuation is not permitted,
then such Eurodollar Loans shall be automatically converted to ABR Loans on the
last day of such then expiring Interest Period and (ii) if the Borrower gives a
notice of continuation but fails to specify the applicable Interest Period,
then the Borrower shall be deemed to have requested a one-month Interest
Period.

3.4.          Minimum Amounts
and Maximum Number of Tranches. 
All borrowings, conversions and continuations of Loans hereunder and all
selections of Interest Periods hereunder shall be in such amounts and be made
pursuant to such elections so that, after giving effect thereto, the aggregate
principal amount of the Loans comprising each Eurodollar Tranche shall be equal
to $5,000,000 or a higher integral multiple of $1,000,000.  In no event shall there be more than 10
Eurodollar Tranches outstanding at any time.

3.5.          Interest
Rates and Payment Dates. 
(a)  Each Eurodollar Loan shall
bear interest for each day during each Interest Period with respect thereto at
a rate per annum equal to the Eurodollar Rate determined for such Interest
Period plus the Applicable Margin.

(b)  Each ABR Loan shall bear interest at a rate
per annum equal to the ABR plus the Applicable Margin; provided
that so long as the Lenders have not been required to purchase participations
in Swingline Loans pursuant to Section 2.8(c), Swingline Loans shall
bear interest at a rate per annum equal to the ABR plus the Applicable
Margin minus the Commitment Fee Rate.

(c)  If any amount payable by the Borrower under
any Loan Document is not paid when due (after any applicable grace period),
whether at stated maturity, by acceleration or otherwise, such amount shall
thereafter bear interest at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable
laws.  Furthermore, upon the request of
the Required Lenders, at any time an Event of Default exists, the Borrower
shall pay interest on the Loans at a fluctuating interest rate per annum at all
times equal to the Default Rate to the fullest extent permitted by applicable
laws.

(d)  Interest shall be payable in arrears on each
Interest Payment Date and on the Termination Date; provided that interest
accruing pursuant to Section 3.5(c) shall be payable from time to time
on demand.

3.6.          Computation
of Interest and Fees. 
(a)  Interest based on Bank of
America’s “prime rate” shall be calculated on the basis of a year of 365 (or,
if applicable, 366)

 27
 

days and for the actual number of days elapsed.  All other interest and all fees shall be
calculated on the basis of a year of 360 days and for the actual number of days
elapsed.  The Administrative Agent shall
as soon as practicable notify the Borrower and the Lenders of each
determination of a Eurodollar Rate.  Any
change in the interest rate on a Loan resulting from a change in the ABR or the
Eurodollar Reserve Percentage shall become effective as of the opening of
business on the day on which such change becomes effective.  The Administrative Agent shall as soon as
practicable notify the Borrower and the Lenders of the effective date and the
amount of each such change in the ABR or the Eurodollar Reserve Percentage.

(b)  Each determination of an interest rate by the
Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of
manifest error.  The Administrative Agent
shall, at the request of the Borrower or any Lender, deliver to the Borrower or
such Lender a statement showing the quotations used by the Administrative Agent
in determining any interest rate pursuant to Section 3.5(a).

3.7.          Inability
to Determine Interest Rate. 
If prior to the first day of any Interest Period:

(a)  the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Eurodollar Rate
for such Interest Period, or

(b)  the Administrative Agent shall have received
notice from the Required Lenders that the Eurodollar Rate determined or to be
determined for such Interest Period will not adequately and fairly reflect the
cost to such Lenders (as conclusively certified by the Required Lenders) of
making or maintaining their affected Loans during such Interest Period,

then the Administrative Agent shall give telecopy or
telephonic notice thereof, to the Borrower and the Lenders as soon as
practicable thereafter.  If such notice
is given, (x) any Eurodollar Loans requested to be made on the first day of
such Interest Period shall be made as ABR Loans, (y) any ABR Loans that were to
have been converted on the first day of such Interest Period to Eurodollar
Loans shall be continued as ABR Loans and (z) any outstanding Eurodollar Loans
that were to be continued on the first day of such Interest Period shall be
converted to ABR Loans.  Until such
notice has been withdrawn by the Administrative Agent, no further Eurodollar
Loans shall be made or continued as such, nor shall the Borrower have the right
to convert Loans to Eurodollar Loans.

3.8.          Pro Rata
Treatment and Payments. 
(a)  Except as provided in Section
2.3(d), each borrowing by the Borrower from the Lenders hereunder (other
than borrowings of Swingline Loans), each payment by the Borrower on account of
any commitment fee hereunder and any reduction of the Commitments of the
Lenders shall be made pro rata according to the respective Commitment
Percentages of the Lenders.  Subject to Sections
2.3(d) and 3.8(c), each payment (including each prepayment) by the
Borrower on account of principal of and interest on the Loans shall be made pro rata
according to the respective outstanding principal amounts of the

 28
 

Loans then held by the Lenders; provided that
payments in respect of Swingline Loans that have not been refunded with
Revolving Loans pursuant to Section 2.8(b) shall be for the account of
the Swingline Lender only (subject to the Swingline Lender’s obligation to
share with any participants in the Swingline Loans).  All payments (including prepayments) to be
made by the Borrower hereunder, whether on account of principal, interest, fees
or otherwise, shall be made without set off or counterclaim and shall be made
prior to 12:00 noon, New York City time, on the due date thereof to the
Administrative Agent, for the account of the Lenders at the Administrative
Agent’s Office, in Dollars and in immediately available funds (and funds
received after that time shall be deemed to have been received on the next
succeeding Business Day).  The
Administrative Agent shall distribute such payments to the Lenders promptly
upon receipt (and if such payment is received prior to 12:00 noon, on the same
day) in like funds as received.  If any
payment hereunder becomes due and payable on a day other than a Business Day,
the due date for such payment shall be extended to the next succeeding Business
Day, and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension and such extension of
time shall in such case be included in the computation of payment of interest
or fees, as the case may be.

(b)  Unless the Administrative Agent shall have
been notified in writing by any Lender prior to a borrowing that such Lender
will not make the amount that would constitute its portion of such borrowing
available to the Administrative Agent, the Administrative Agent may assume that
such Lender is making such amount available to the Administrative Agent, and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower a corresponding amount.  If such amount is not made available to the
Administrative Agent by the required time on the Borrowing Date therefor, such
Lender shall pay to the Administrative Agent, on demand, such amount with
interest thereon, for the period from such Borrowing Date until such Lender
makes such amount available to the Administrative Agent in immediately
available funds, at a rate equal to the greater of (i) the daily average
Federal Funds Rate and (ii) a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.  A certificate of the Administrative Agent
submitted to any Lender with respect to any amount owing under this subsection
shall be conclusive in the absence of manifest error.  If such Lender’s portion of such borrowing is
not made available to the Administrative Agent by such Lender within three
Business Days of such Borrowing Date, the Administrative Agent shall also be
entitled to recover such amount with interest thereon at the rate per annum
applicable to ABR Loans hereunder, on demand, from the Borrower.

(c)  In the event that a Lender fails to make
available after a period of three Business Days to the Administrative Agent its
portion of a borrowing (any such Lender, a “Defaulting Lender”), the
Borrower may replace such Lender as provided in Section 3.14.  Notwithstanding any such replacement, no
Defaulting Lender shall be released from any of its rights or obligations under
any Loan Document (including Section 9.7) for actions taken or failed to
be taken by it prior to the date of such substitution.  

3.9.          Illegality.  Notwithstanding any other provision herein,
if the adoption of or any change in any Requirement of Law or in the
interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert ABR Loans to Eurodollar Loans shall
forthwith be

 29
 

cancelled and (b) such Lender’s Loans then outstanding
as Eurodollar Loans, if any, shall be converted automatically to ABR Loans on
the respective last days of the then current Interest Periods with respect to
such Loans or within such earlier period as required by law.  If any such conversion of a Eurodollar Loan
occurs on a day which is not the last day of the then current Interest Period
with respect thereto, the Borrower shall pay to such Lender such amounts, if
any, as may be required pursuant to Section 3.12.

3.10.        Requirements
of Law.  (a)  If the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

(i)            shall subject any Lender to any tax
of any kind whatsoever with respect to this Agreement, any Note or any
Eurodollar Loan made by it, or change the basis of taxation of payments to such
Lender in respect thereof (except for Non-Excluded Taxes covered by Section
3.11 and changes in the rate of tax on the overall net income, or franchise
taxes imposed in lieu of income taxes, of such Lender);

(ii)           shall impose, modify or hold
applicable any reserve, special deposit, compulsory loan or similar requirement
against assets held by, deposits or other liabilities in or for the account of,
advances, loans or other extensions of credit by, or any other acquisition of
funds by, any office of such Lender which is not otherwise included in the
determination of the Eurodollar Rate hereunder; or

(iii)          shall impose on such Lender any other
condition;

and the result of any of the foregoing is to increase
the cost to such Lender, by an amount which such Lender in good faith deems to
be material, of agreeing to make or maintain, or of making, converting into,
continuing or maintaining, Eurodollar Loans or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Borrower shall promptly
(and in any event within 10 days after receipt of a certificate in accordance
with Section 3.10(c)) pay such Lender such additional amount or amounts
as will compensate such Lender for such increased cost or reduced amount
receivable.

(b)  If any Lender shall have determined that the
adoption of or any change in any Requirement of Law regarding capital adequacy
or in the interpretation or application thereof or compliance by such Lender or
any corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender’s or such corporation’s capital as a consequence
of its obligations hereunder to a level below that which such Lender or such
corporation could have achieved but for such adoption, change or compliance
(taking into consideration such Lender’s or such corporation’s policies with
respect to capital adequacy) by an amount deemed by such Lender in good faith
to be material, then the Borrower shall promptly (and in any event within 10
days after receipt of a certificate in accordance with this Section 3.10(b),
pay to such Lender such additional amount or amounts as will fairly compensate
such Lender for such reduction in the return on capital. 

 30
 

(c)  If any Lender becomes entitled to claim any
additional amounts pursuant to this Section 3.10,
it shall promptly notify the Borrower (with a copy to the Administrative Agent)
of the event by reason of which it has become so entitled; provided
that no additional amount shall be payable under this Section 3.10 for a
period longer than nine months prior to such notice to the Borrower.  A certificate as to any additional amounts
payable pursuant to this Section 3.10
submitted by such Lender to the Borrower (with a copy to the Administrative
Agent) shall be conclusive in the absence of manifest error.  The agreements in this Section shall survive
for a period of one year after the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.  In determining whether to make a claim, and calculating the
amount of compensation, under this Section 3.10, each Lender shall
apply standards that are not inconsistent with those generally applied by such
Lender in similar circumstances.

3.11.        Taxes.  (a) 
All payments made by the Borrower under this Agreement and any Notes
shall be made free and clear of, and without deduction or withholding for or on
account of, any present 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 net income taxes and franchise taxes (imposed in lieu of net income
taxes) imposed on the Administrative Agent or any Lender as a result of a
present 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 signed, delivered or performed its obligations or received a payment
under, or enforced, this Agreement or any Note).  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 or under any Note, 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.  In
addition, if any Non-Excluded Taxes are directly imposed on or asserted against
the Administrative Agent or any Lender with respect to any payment received by
the Administrative Agent or such Lender hereunder, the Administrative Agent or
such Lender may pay such Non-Excluded Taxes and the Borrower will promptly pay
such additional amount (including any penalty, interest or expense) as is
necessary in order that the net amount received by the Administrative Agent or
such Lender after the payment of such Non-Excluded Taxes (including any taxes
on such additional amounts) shall equal the amount such Person would have
received had such Non-Excluded Taxes not been imposed or asserted.  Notwithstanding the foregoing two sentences,
the Borrower shall not be required to increase any amount payable, or pay any
additional amount, under this Section 3.11(a) to any Lender that is not
organized under the laws of the United States of America or a state thereof if
such Lender fails to comply with the requirements of Section
3.11(b).  Whenever any
Non-Excluded Taxes are payable by the Borrower, as promptly as possible
thereafter the 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 received by the Borrower showing payment
thereof.  If the Borrower 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, the Borrower shall indemnify the

 31
 

Administrative Agent and the Lenders for any
incremental taxes, interest or penalties that may become payable by the
Administrative Agent or any Lender as a result of any such failure.  The agreements in this subsection shall
survive for a period of one year the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

(b)  Each Lender that is not incorporated under
the laws of the United States of America or a state thereof shall:

(i)            deliver to the Borrower and the
Administrative Agent two duly completed copies of United States Internal
Revenue Service Form W-8ECI or Form W-8BEN, or successor applicable form, as
the case may be;

(ii)           deliver to the Borrower and the
Administrative Agent two further copies of any such form or certification 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 Borrower; and

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

unless in any such case an event (including any change
in treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Borrower and the
Administrative Agent.  Such Lender shall
certify that it is entitled to an exemption from United States backup
withholding tax.  Each Person that shall
become a Lender or a Participant pursuant to Section 10.6 shall, upon
the effectiveness of the related transfer, be required to provide all of the
forms and statements required pursuant to this subsection; 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)  If the Administrative Agent or any Lender
determines, in its sole discretion, that it has received a refund of any
Non-Excluded Taxes as to which it has been indemnified by the Borrower or with
respect to which the Borrower has paid additional amounts pursuant to this
Section, it shall pay to the Borrower an amount equal to such refund (but not
more than the indemnity payments made, or additional amounts paid, by the
Borrower under this Section with respect to the Non-Excluded Taxes giving
rise to such refund), net of all out-of-pocket expenses of the
Administrative Agent or such Lender, as the case may be, and without interest
(other than any interest paid by the relevant Governmental Authority with
respect to the relevant portion of such refund), provided that the
Borrower, upon the request of the Administrative Agent or such Lender, agrees
to repay the amount paid over to the Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent or such Lender if the Administrative Agent or such Lender
is required to repay such refund to such Governmental Authority.  This subsection shall not be construed to
require the Administrative Agent or such Lender to make available its tax
returns (or any other information relating to its taxes that it deems
confidential) to the Borrower or any other Person.

 32
 

3.12.        Indemnity.  The Borrower agrees to indemnify each Lender
and to hold each Lender harmless from any loss or expense which such Lender may
sustain or incur as a consequence of (a) default by the Borrower in making a
borrowing of, conversion into or continuation of Eurodollar Loans after the
Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement, (b) default by the Borrower in making any prepayment
after the Borrower has given a notice thereof in accordance with the provisions
of this Agreement or (c) the making of a prepayment of Eurodollar Loans on a
day which is not the last day of an Interest Period with respect thereto.  Such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest which would have
accrued on the amount so prepaid, or not so prepaid, borrowed, converted or
continued, for the period from the date of such prepayment or of such failure to
prepay, borrow, convert or continue to the last day of such Interest Period
(or, in the case of a failure to borrow, convert or continue, the Interest
Period that would have commenced on the date of such failure) in each case at
the applicable rate of interest for such Loans provided for herein (excluding
the Applicable Margin included therein, if any) over (ii) the amount of
interest (as reasonably determined by such Lender) which would have accrued to
such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the interbank eurodollar market.  This covenant shall survive the termination
of this Agreement and the payment of the Loans and all other amounts payable
hereunder.  

3.13.        Change of
Lending Office.  Each Lender
agrees that if it makes any demand for payment under Section 3.10 or 3.11(a),
or if any adoption or change of the type described in Section 3.9 shall
occur with respect to it, it will use reasonable efforts (consistent with its
internal policy and legal and regulatory restrictions and so long as such
efforts would not be unreasonably disadvantageous to it, as determined in its
reasonable sole discretion) to designate a different lending office if the
making of such a designation would reduce or obviate the need for the Borrower
to make payments under Section 3.10 or 3.11(a), or would
eliminate or reduce the effect of any adoption or change described in Section
3.9.

3.14.        Replacement of Lenders.  (a) If any Lender (i) makes any demand
for payment under Section 3.10 or 3.11(a), (ii) becomes subject
to an event described in Section 3.9, (iii) does not consent to a
proposed amendment or supplement to, or waiver of or other modification of,
this Agreement that (A) requires the approval of all Lenders and (B) has been
approved by the Required Lenders, or (iv) is a Defaulting Lender, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and
the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 10.6(c)), all of its interests,
rights and obligations under this Agreement and the other Loan Documents to an
assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment), provided that:

(1)  the Borrower shall have paid to the
Administrative Agent the assignment fee specified in Section 10.6(e);

(2)  such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder and under
the other Loan Documents (including any

 33
 

amounts under Section 3.12,
calculated as if such Lender’s Eurodollar Loans were paid in full on the date
of such assignment) from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all
other amounts); 

(3)  in the case of any such assignment resulting
from a demand for payment under Section 3.10 or 3.11(a),
such assignment will result in a reduction in such compensation or payments
thereafter; 

(4)  the Borrower may not require any Lender to
make such assignment pursuant to clause (iii) above unless all other Lenders
that did not consent to the relevant amendment, supplement, waiver or
modification are concurrently required to assign all of their interests, rights
and obligations hereunder; and 

(5)  such assignment does not conflict with
applicable laws.

(b)  A Lender shall not be required to make any
assignment and delegation pursuant to this Section 3.14 if, prior
thereto (as a result of a waiver by such Lender or otherwise), the
circumstances entitling the Borrower to require such assignment and delegation
cease to apply.

SECTION 4.  REPRESENTATIONS AND WARRANTIES

To induce the
Administrative Agent and the Lenders to enter into this Agreement and to make
the Loans, the Borrower hereby represents and warrants to the Administrative
Agent and each Lender that:

4.1.          Financial
Condition.  The Borrower has
heretofore furnished to each Lender copies of (i) the audited consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at December
31, 2005 and the related audited consolidated statements of income and of cash
flows for the fiscal year ended on such date, audited by PricewaterhouseCoopers
LLP and (ii) the unaudited consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as at September 30, 2006 and the related unaudited
consolidated statements of income and of cash flows for the six-month period
ended on such date (the “Financial Statements”).  The Financial Statements present fairly, in
all material respects, the consolidated financial condition of the Borrower and
its consolidated Subsidiaries as at December 31, 2005 and September 30, 2006
and present fairly, in all material respects, the consolidated results of their
operations and their consolidated cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end audit
adjustments and the absence of footnote disclosure).  The Financial Statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP
applied consistently throughout the period involved. Except as set forth on Schedule
4.1, neither the Borrower nor any consolidated Subsidiary had, at December
31, 2005 or at the date hereof, any material Guarantee Obligation, material
contingent liability or material liability for taxes, or any material long-term
lease or unusual material forward or long-term commitment, including any
interest rate or foreign currency swap or exchange transaction, which is not
reflected in the foregoing statements or in the notes thereto.  Except as set forth on Schedule 4.1,
during the period from December 31, 2005 through the date

 34
 

hereof there has been no sale, transfer or other
disposition by the Borrower or any of its consolidated Subsidiaries of any
material part of its business or property and no purchase or other acquisition
of any business or property (including any capital stock of any other Person)
material in relation to the consolidated financial condition of the Borrower
and its consolidated Subsidiaries as of December 31, 2005.

4.2.          No Change.  Since December 31, 2005, except as set forth
in the Financial Statements and except as set forth on Schedule 4.2,
there has been no development or event which has had or could have a Material
Adverse Effect.

4.3.          Corporate
Existence; Compliance with Law. 
Each of the Borrower, each Restricted Subsidiary and each other
Subsidiary Guarantor (a) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, (b) has the
power and authority, and the legal right, to own and operate its material
properties, to lease the material properties it operates as lessee and to
conduct the businesses in which it is currently engaged, (c) is duly qualified
as a foreign corporation, partnership or limited liability company, as applicable,
and in good standing under the laws of each jurisdiction where its ownership,
lease or operation of property or the conduct of its business requires such
qualification except where the failure to be so qualified or in good standing
would not have a Material Adverse Effect and (d) is in compliance with its
certificate of incorporation and by-laws or other similar organizational or
governing documents and with all Requirements of Lawexcept to the extent that the failure to comply therewith
could not, in the aggregate, have a Material Adverse Effect.

4.4.          Corporate
Power; Authorization; Enforceable Obligations.  Each Loan Party has the corporate power and
authority, and the legal right, to make, deliver and perform the Loan Documents
to which it is a party and has taken all necessary corporate action to
authorize the execution, delivery and performance of the Loan Documents to
which it is a party.  The Borrower has
the corporate power and authority, and the legal right to borrow hereunder and
has taken all necessary corporate action to authorize such borrowings on the
terms and conditions of this Agreement and any Notes.  No consent or authorization of, filing with,
notice to or other act by or in respect of any Governmental Authority or any
other Person is required in connection with the borrowings hereunder or with
the execution, delivery, performance, validity or enforceability of any Loan
Documents against any Loan Party that is a party thereto; provided
that the Administrative Agent’s rights under the Pledge Agreements are subject
to the terms and provisions thereof. 
This Agreement has been, and each other Loan Document will be when
delivered, duly executed and delivered by each Loan Party that is party thereto.  This Agreement constitutes, and each other
Loan Document when delivered will constitute, a legal, valid and binding
obligation of each Loan Party which is a party thereto, enforceable against
such Loan Party in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other laws relating to or affecting the enforcement of creditors’ rights
generally and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).

4.5.          No Legal
Bar.  The execution, delivery
and performance by each Loan Party of each Loan Document to which such Person
is party, the borrowings hereunder and the use of the proceeds thereof will not
violate any certificate of incorporation and by-laws or other similar
organizational or governing documents, Requirement of Law or Contractual
Obligation

 35
 

applicable to any Loan Party or any of its
Subsidiaries, except for such violations of Requirements of Law or Contractual
Obligations which could not, singly or in the aggregate, reasonably be expected
to have a Material Adverse Effect, and will not result in, or require, the
creation or imposition of any Lien on any of the properties or revenues of the
Borrower or any Restricted Subsidiary pursuant to any such organizational or
governing document, Requirement of Law or Contractual Obligation, except
pursuant to this Agreement and the other Loan Documents.

4.6.          No
Material Litigation.  No
litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of the Borrower,
threatened by or against the Borrower or any Subsidiary or against any of its
or their respective properties or revenues which could reasonably be expected
to have a Material Adverse Effect.

4.7.          No Default.  Neither the Borrower nor any Subsidiary is in
default under or with respect to any of its Contractual Obligations in any
respect which could reasonably be expected to have a Material Adverse Effect.  No Default has occurred and is continuing or
would result from the consummation of the transactions contemplated by this
Agreement or any other Loan Document.

4.8.          Ownership
of Property; Liens.  Each of
the Borrower and each Restricted Subsidiary has good record and marketable
title in fee simple to, or a valid leasehold interest in, all its material real
property, and good title to, or a valid leasehold interest in, all its other
material property, and none of such property is subject to any Lien except as
permitted by Section 7.3.

4.9.          Taxes.  Each of the Borrower and each Subsidiary has
filed or caused to be filed all material tax returns which, to the knowledge of
the Borrower, are required to be filed or has timely filed a request for an
extension of such filing and has paid all taxes shown to be due and payable on
said returns or extension requests or on any assessments made against it or any
of its property and, except as set forth on Schedule 4.9, all other
taxes, fees or other charges imposed on it or any of its property by any
Governmental Authority (except, in each case, to the extent the amount or
validity thereof is currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have
been provided on the books of the Borrower and as to any of which the failure
to pay would not have a Material Adverse Effect).

4.10.        Federal
Regulations.  (a)  None of the Pledged Collateral consists of “margin
stock” (within the meaning of Regulation U). 
“Margin stock” (within the meaning of Regulation U) constitutes less
than 25% of the value of those assets of the Borrower and its Subsidiaries
which are subject to any limitation on sale or pledge or any similar
restriction hereunder.  If requested by
any Lender or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and each Lender a statement to the foregoing effect in
conformity with the requirements of FR Form U-1 referred to in Regulation
U.

(b)  The Borrower is not subject to regulation
under any Federal or State statute or regulation (other than Regulation X of
the FRB) which limits its ability to incur Indebtedness.

 36

4.11.        ERISA.  No Reportable Event has occurred during the
five-year period prior to the date on which this representation is made
or deemed made with respect to any Plan, and each Plan has complied in all
material respects with the applicable provisions of ERISA and the Code.  The present value of all accrued benefits
under any Single Employer Plan maintained by the Borrower or any Commonly
Controlled Entity (based on those assumptions used to fund the Plans) did not,
as of the last annual valuation date prior to the date on which this
representation is made or deemed made, exceed the value of the assets of such
Plan allocable to such accrued benefits. 
There are no Multiemployer Plans. 
Neither the Borrower nor any Commonly Controlled Entity has had a complete
or partial withdrawal from any Multiemployer Plan.

4.12.        Investment
Company Act; Investment Advisers Act.  (a) 
None of the Borrower, any Restricted Subsidiary or any other Subsidiary
Guarantor is, or after giving effect to any Acquisition will be, an “investment
company” within the meaning of the Investment Company Act.

(b)  Each Subsidiary and each other Investment
Firm is, to the extent required thereby, duly registered as an investment
adviser under the Investment Advisers Act, except to the extent the failure to
be so registered could not reasonably be expected to have a Material Adverse
Effect.  On the date hereof, the Borrower
is not an “investment adviser” within the meaning of the Investment Advisers
Act.  Each Fund which is sponsored by any
Subsidiary or other Investment Firm and which is required to be registered as
an “investment company” under the Investment Company Act is duly registered as
such thereunder, except to the extent the failure to be so registered could not
reasonably be expected to have a Material Adverse Effect.

(c)  The Borrower is not required to be registered
as a broker-dealer under the Securities Acts (and each Subsidiary and other
Investment Firm required to be so registered is so duly registered), except to
the extent the failure to be so registered could not reasonably be expected to
have a Material Adverse Effect.

(d)  Each of the Borrower, each Restricted
Subsidiary and each other Investment Firm is duly registered, licensed or
qualified as an investment adviser or broker-dealer in each State of the United
States where the conduct of its business requires such registration, licensing
or qualification and is in compliance in all material respects with all Federal
and State laws requiring such registration, licensing or qualification, except
to the extent the failure to be so registered, licensed or qualified or to be
in such compliance will not have, in the case of Federal laws, or could not
reasonably be expected to have, in the case of State laws, a Material Adverse
Effect.

4.13.        Subsidiaries
and Other Ownership Interests.  The Subsidiaries listed on Schedule
4.13 constitute the only Subsidiaries of the Borrower as at the date
hereof.  The Borrower has as at the date
hereof, directly or indirectly, an equity or other ownership interest in each
Investment Firm and each other Person listed on Schedule 4.13; and other
than as set forth on such schedule, the Borrower has no such interest, directly
or indirectly, in any other Person.

4.14.        Use of
Proceeds.  The proceeds of the
Loans shall be used by the Borrower (i) for working capital, capital
expenditures and other general corporate purposes

 37
 

(including to make payments on the Zero-Coupon Bonds
and any securities exchanged therefor and to make interest payments in respect
of the Feline Prides II Senior Notes), (ii) to make Acquisitions and other
investments (including acquisitions of additional Capital Stock in Subsidiaries
and Affiliates of the Borrower), (iii) to purchase, repay or redeem any debt or
equity of the Borrower or any Subsidiary so long as such purchase, repayment or
redemption is not prohibited by any other provision of this Agreement and (iv)
to pay fees and expenses to be incurred in connection with the foregoing and in
connection with the execution and delivery of the Loan Documents.

4.15.        Accuracy
and Completeness of Information. 
To the best of the Borrower’s knowledge, the documents furnished and the
statements made in writing to the Lenders by or on behalf of the Borrower in
connection with the negotiation, preparation or execution of this Agreement or
any of the other Loan Documents, taken as a whole, do not contain any untrue
statement of fact material to the credit worthiness of the Borrower or omit to
state any such material fact necessary in order to make the statements
contained therein not misleading under the circumstances in which such
statements were made, in either case which has not been corrected, supplemented
or remedied by subsequent documents furnished or statements made in writing to
the Lenders prior to the date hereof.

4.16.        Pledge Agreements.  The provisions of each Pledge Agreement are
effective to create in favor of the Administrative Agent a legal, valid and
enforceable security interest in all right, title and interest of the
Restricted Loan Party that is party thereto in the collateral covered thereby
and all necessary actions have been taken to create a first priority perfected
Lien in such collateral. 

SECTION 5.  CONDITIONS
PRECEDENT

5.1.          Conditions
to Effectiveness.  This
Agreement shall become effective, and all loans outstanding under the Existing
Credit Agreement shall be deemed to be Loans hereunder and subject to the terms
and conditions hereof, on the date on which all of the following conditions
precedent have been satisfied:

(a)  Loan Documents.  The Administrative Agent shall have received
(i) this Agreement, signed by a duly authorized officer of the Borrower, (ii)
the Subsidiary Guaranty, signed by a duly authorized officer of each Subsidiary
Guarantor, and (iii) a Confirmation, substantially in the form of Exhibit K,
signed by a duly authorized officer of each Restricted Loan Party.

(b)  Related
Agreements.  The
Administrative Agent shall have received true and correct copies of each of the
existing Revenue Sharing Agreements and any purchase agreements signed in
connection with an Acquisition or proposed Acquisition (either of which is
expected to occur on or after the Closing Date), and such other documents or
instruments as may be reasonably requested by the Administrative Agent
(including a copy of any debt instrument, security agreement or other material
contract to which the Borrower or any Restricted Subsidiary may be a party).

 38
 

(c)  Notes. 
The Administrative Agent shall have received, for the account of each
Lender that has requested the same, a Note made by the Borrower conforming to
the requirements of this Agreement, signed by a duly authorized officer of the
Borrower.

(d)  Borrower
Certificate.  The
Administrative Agent shall have received a certificate of the Borrower, dated
the Closing Date, substantially in the form of Exhibit C, with
appropriate insertions and attachments, signed by a Responsible Officer.

(e)  Corporate
Proceedings of the Loan Parties. 
The Administrative Agent shall have received a copy of resolutions, in
form and substance reasonably satisfactory to the Administrative Agent, of the
Board of Directors (or similar governing body) of each Loan Party authorizing
(i) the execution, delivery and performance of the Loan Documents to which it
is a party, (ii) in the case of the Borrower, the borrowings contemplated
hereunder and (iii) the granting (to the extent applicable) of the Liens
created pursuant to the Pledge Agreements, in each case certified by the
Secretary or an Assistant Secretary of such Loan Party as of the Closing Date,
which certificate shall be in form and substance reasonably satisfactory to the
Administrative Agent and shall state that the resolutions thereby certified
have not been amended, modified, revoked or rescinded.

(f)  Incumbency
Certificate.  The
Administrative Agent shall have received a certificate of each Loan Party,
dated the Closing Date, as to the incumbency and signatures of the officers of
such Loan Party signing any Loan Document, reasonably satisfactory in form and substance
to the Administrative Agent, signed by the President or any Vice President and
the Secretary or any Assistant Secretary of such Loan Party.

(g)  Corporate
Documents.  The Administrative
Agent shall have received true and complete copies of the certificate of
incorporation and by-laws (or similar organizational documents) of each
Loan Party, certified as of the Closing Date as complete and correct copies
thereof by the Secretary or an Assistant Secretary of such Loan Party.

(h)  Fees. 
All fees payable by the Borrower to the Administrative Agent, the
Arranger and any Lender on or prior to the Closing Date pursuant to this
Agreement or pursuant to the Commitment Letter and Fee Letter, each dated
November 10, 2006, among Bank of America, the Arranger and the Borrower shall
have been paid in full, in each case in the amounts and on the dates set forth
herein or therein.

(i)  Attorney Costs.  The Administrative Agent shall have received
evidence of payment by the Borrower of all Attorney Costs of the Administrative
Agent to the extent invoiced prior to or on the Closing Date, plus such
additional amounts of Attorney Costs as shall constitute the Administrative
Agent’s reasonable estimate of Attorney Costs incurred or to be incurred by it
through the closing proceedings (provided that such estimate shall not
thereafter preclude a final settling of accounts between the Borrower and the
Administrative Agent).

 39
 

(j)  Legal Opinion.  The Administrative Agent shall have received
the legal opinion of Ropes & Gray LLP, counsel to the Borrower and the
other Loan Parties, substantially in the form of Exhibit D.  Such legal opinion shall cover such other
matters incident to the transactions contemplated by this Agreement as the
Administrative Agent may reasonably require.

(k)  Pledged Stock and other Equity Interests;
Transfer Powers.  The Administrative
Agent shall have received all certificates representing the shares of Capital
Stock pledged pursuant to the Pledge Agreements, together with an undated
transfer power, in form and substance reasonably satisfactory to the
Administrative Agent, for each such certificate executed in blank by a duly
authorized officer of the pledgor thereof. 

(l)  Actions to
Perfect Liens.  The
Administrative Agent shall have received evidence in form and substance
reasonably satisfactory to it that all filings, recordings, registrations and
other actions, including the filing of duly executed financing statements on
form UCC-1, necessary or, in the reasonable opinion of the Administrative Agent,
desirable to perfect the Liens created by the Pledge Agreements have been
completed.

(m)  Lien Searches.  The Administrative Agent shall have received
the results of a recent search, by a Person satisfactory to the Administrative
Agent, of the Uniform Commercial Code, judgment and tax lien filings which may
have been filed with respect to personal property of the Borrower and the other
Restricted Loan Parties, and the results of such search shall be reasonably
satisfactory to the Administrative Agent.

(n)  Existing Credit
Agreement.  The Administrative
Agent shall have received evidence reasonably satisfactory to it that all
accrued but unpaid interest and fees payable under the Existing Credit
Agreement have been, or concurrently with the effectiveness hereof will be,
paid in full.

(o)  No Default, etc.  The conditions precedent to the making of a
Loan set forth in Section 5.2(a) and (b) shall be satisfied

5.2.          Conditions
to Each Loan.  The agreement
of each Lender to make any Loan (excluding any repricing or conversion of any
then outstanding Loan) is subject to the satisfaction of the following
conditions precedent:

(a)  Representations
and Warranties.  Each
representation and warranty made by any Loan Party in or pursuant to the Loan
Documents shall be true and correct in all material respects on and as of such
date as if made on and as of such date; provided that (i)
representations and warranties made with reference to a specific date shall
remain true and correct as of such date only and (ii) representations and
warranties shall not be required to remain true to the extent changes have
resulted from actions permitted hereunder.

(b)  No Default.  No Default shall have occurred and be
continuing on such date or after giving effect to the Loans requested to be
made on such date.

 40
 

(c)  Notice of
Borrowing.  The Administrative
Agent shall have received a notice of borrowing pursuant to Section 2.2
(or in the case of Swingline Loans, pursuant to Section 2.8).

Each borrowing by the Borrower hereunder shall constitute
a representation and warranty by the Borrower as of the date thereof that the
conditions contained in this Section 5.2 have been satisfied.

SECTION 6.  AFFIRMATIVE
COVENANTS

The Borrower hereby agrees that, so long as the
Commitments remain in effect or any amount is owing to any Lender or the
Administrative Agent hereunder or under any other Loan Document, the Borrower
shall and (except in the case of delivery of financial information, reports and
notices) shall cause each of its Restricted Subsidiaries (and, in the case of Sections
6.3 and 6.4(c) and any other Section that applies to Subsidiaries
generally, each of its Unrestricted Subsidiaries) to:

6.1.          Financial
Statements.  Furnish to the
Administrative Agent (which shall promptly furnish to the Lenders):

(a)  as soon as available, but in any event within
90 days after the end of each fiscal year, copies of the consolidated and
consolidating balance sheets of the Borrower and its Restricted Subsidiaries as
at the end of such year and the related consolidated and consolidating
statements of income and consolidated statements of retained earnings and of
cash flows for such year, setting forth in each case in comparative form the
figures for the previous year and, in the case of the consolidated statements
only, reported on without a “going concern” or like qualification or exception,
or qualification arising out of the scope of the audit, by
PricewaterhouseCoopers LLP or other independent certified public accountants of
nationally recognized standing; and

(b)  as soon as available, but in any event not
later than 45 days after the end of each of the first three quarterly periods
of each fiscal year, copies of the unaudited consolidated and consolidating
balance sheets of the Borrower and its Restricted Subsidiaries as at the end of
such quarter and the related unaudited consolidated and consolidating
statements of income and retained earnings and of cash flows for such quarter
and the portion of the fiscal year through the end of such quarter, setting
forth in each case in comparative form the figures for the previous year,
certified by a Responsible Officer as being fairly stated in all material
respects (subject to normal year-end audit adjustments).

All such financial statements shall be complete and
correct in all material respects and shall be prepared in reasonable detail and
in accordance with GAAP applied consistently throughout the periods reflected
therein and with prior periods (subject, in the case of interim financial
statements, to year end adjustments and the absence of footnotes).

6.2.          Certificates;
Other Information.  Furnish to
the Administrative Agent (which shall promptly furnish to the Lenders):

 41
 

(a)  concurrently with the delivery of the
financial statements referred to in Section 6.1(a), a certificate of the
independent certified public accountants reporting on such financial statements
stating that in making the examination necessary therefor no knowledge was
obtained of any Default, except as specified in such certificate;

(b)  concurrently with the delivery of the
financial statements referred to in Sections 6.1(a) and (b), (i)
a duly completed Compliance Certificate signed by a Responsible Officer (A)
stating that, to the best of such Officer’s knowledge, no Default exists, except
as specified in such certificate; (B) containing a computation of each of the
financial ratios and restrictions set forth in Section 7.1; and (C)
describing in reasonable detail any material change in accounting policies or
financial reporting practices by the Borrower or any Restricted Subsidiary and
(ii) a listing for each Investment Firm of its aggregate assets under
management as of the end of the period covered by such financial statements;

(c)  within five days after the same are filed,
copies of all financial statements and reports which the Borrower may make to,
or file with, the Securities and Exchange Commission or any successor or
analogous Governmental Authority;

(d)  within five Business Days after the
consummation of any Acquisition of a new Investment Firm for which more than
$150,000,000 in aggregate consideration was paid (including any non-cash
consideration), (A) copies of the most recent audited (and, if later, or, if
audited statements are not available, unaudited) financial statements of the
Investment Firm which is the subject of such Acquisition, (B) copies of the
purchase agreement or other acquisition document (including any Revenue Sharing
Agreement) executed or to be executed by the Borrower or any Restricted
Subsidiary in connection with such Acquisition, (C) an unaudited pro forma
consolidated balance sheet of the Borrower and its Restricted Subsidiaries as
at a recent date but prepared as though the closing of such Acquisition had
occurred on or prior to such date and related pro
forma calculations, indicating
compliance on a pro forma basis as at such date and for the
periods then ended with the financial covenants set forth in Section 7.1
and (D) a copy of the most recent Form ADV, if any, filed under the Investment
Advisers Act in respect to any Investment Firm which is the subject of such
Acquisition;

(e)  concurrently with the delivery of the
financial statements referred to in Sections 6.1(a) and (b), with
respect to the consummation of any Acquisition during the most recently ended
fiscal quarter of a new Investment Firm for which more than $50,000,000 but
less than $150,000,000 in aggregate consideration was paid (including any
non-cash consideration), (A) copies of the most recent audited (and, if later,
or, if audited statements are not available, unaudited) financial statements of
the Investment Firm which is the subject of such Acquisition, (B) copies of the
purchase agreement or other acquisition document (including any Revenue Sharing
Agreement) executed or to be executed by the Borrower or any Restricted
Subsidiary in connection with such Acquisition, (C) an unaudited pro forma
consolidated balance sheet of the Borrower and its Restricted Subsidiaries as
at a recent date but prepared as though the closing of such Acquisition had
occurred on or prior to such date and related pro
forma calculations, indicating
compliance on a pro forma basis as at such date and for the
periods then ended

 42
 

with the financial
covenants set forth in Section 7.1 and (D) a copy of the most recent
Form ADV, if any, filed under the Investment Advisers Act in respect to any
Investment Firm which is the subject of such Acquisition;

(f)  concurrently with the delivery of the
financial statements referred to in Sections 6.1(a) and (b),
notice of the consummation of any Acquisition for which less than $50,000,000
in aggregate consideration was paid (including any non-cash consideration); 

(g)  concurrently with the delivery of the
financial statements referred to in Sections 6.1(a) and (b),
notice of the consummation of any Acquisition of additional Capital Stock of an
existing Investment Firm during the most recently ended fiscal quarter;

(h)  on (i) any date on which Feline Prides II
Senior Notes are exchanged for, or refinanced or replaced by, Indebtedness that
meets the requirements of Section 7.2(g) and (ii) the date on which the
Leverage Ratio is measured pursuant to Section 7.1(b)(ii), a Compliance
Certificate (which shall include a computation of the Leverage Ratio as of such
date (after giving effect to any such exchange, refinancing or replacement of
Feline Prides II Senior Notes on such date); and

(i)  promptly, such additional financial and other
information and documents (including a copy of any debt instrument, security
agreement or other material contract to which the Borrower or any Subsidiary
may be party) as any Lender may, through the Administrative Agent, from time to
time reasonably request.

Documents required to be
delivered pursuant to Section 6.1(a) or (b) or Section 6.2(c)
(to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be
deemed to have been delivered on the date (i) on which the Borrower posts such
documents, or provides a link thereto, on the Borrower’s website on the
Internet at the website address listed on Schedule 10.2; or (ii) on
which such documents are posted on the Borrower’s behalf on
IntraLinks/IntraAgency or another relevant website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial,
third-party website or a website sponsored by the Administrative Agent); provided
that: (i) the Borrower shall deliver paper copies of such documents to the
Administrative Agent or any Lender that requests the Borrower to deliver such
paper copies until a written request to cease delivering paper copies is given
by the Administrative Agent or such Lender and (ii) the Borrower shall notify
(which may be by facsimile or electronic mail) the Administrative Agent and
each Lender of the posting of any such documents and immediately following such
notification the Borrower shall provide to the Administrative Agent by
electronic mail electronic versions (i.e.,
soft copies) of such documents. 
Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.2(b) to the Administrative
Agent.  Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by the Borrower with
any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

 43
 

The Borrower hereby
acknowledges that (a) the Administrative Agent and/or the Arranger will make
available to the Lenders materials and/or information provided by or on behalf
of the Borrower hereunder (collectively, “Borrower Materials”) by
posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (b) certain of the Lenders (each, a “Public
Lender”) may have personnel who do not wish to receive material non-public
information with respect to the Borrower or its Affiliates, or the securities
of any of the foregoing, and who may be engaged in investment and other
market-related activities with respect to such securities.  The Borrower hereby agrees that so long as the Borrower is the issuer of any
outstanding debt or equity securities that are registered with the Securities
and Exchange Commission or is actively contemplating issuing any such
securities (w) all Borrower Materials that are to be made available to
Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a
minimum, shall mean that the word “PUBLIC” shall appear prominently on the
first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower
shall be deemed to have authorized the Administrative Agent, the Arranger and
the Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrower or its securities for
purposes of United States Federal and state securities laws (provided
that to the extent such Borrower Materials constitute information subject to
the confidentiality provisions in Section 10.15, they shall be treated
as set forth in Section 10.15); (y) all Borrower Materials marked “PUBLIC”
are permitted to be made available through a portion of the Platform designated
“Public Investor;” and (z) the Administrative Agent and the Arranger shall be
entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable
only for posting on a portion of the Platform not designated “Public Investor.”  Notwithstanding
the foregoing, the Borrower shall be under no obligation to mark any Borrower
Materials “PUBLIC.”

6.3.          Payment
of Obligations.  Pay,
discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all its obligations of whatever nature
(including taxes and other governmental levies), except (i) where the amount or
validity thereof is currently being contested in good faith by appropriate
actions and reserves in conformity with GAAP with respect thereto have been
provided on the books of the Borrower or the applicable Subsidiary, as the case
may be, and (ii) where the failure to do so could not reasonably be expected to
have a Material Adverse Effect.

6.4.          Conduct
of Business and Maintenance of Existence.  (a) 
Continue to engage in business of the same general type as now conducted
and purported to be conducted by it and activities reasonably related or
complementary thereto; (b) preserve, renew and keep in full force and effect
its corporate existence and take all reasonable action to maintain all rights,
registrations, licenses, privileges and franchises necessary or desirable in
the normal conduct of its business (including all such registrations under the
Investment Advisers Act and all material investment advisory agreements,
distribution agreements and shareholding and other administrative servicing
contracts), except, in the case of this clause (b), (i) as otherwise
permitted by Section 7.4 and (ii) for failures that individually and in
the aggregate could not reasonably be expected to have a Material Adverse
Effect; and (c) comply, and to the extent reasonably within its control, cause
each Investment Firm and Fund (which is sponsored by an Investment Firm) to
comply, with all Contractual Obligations and Requirements of Law except to the
extent that failure to comply therewith could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 44
 

6.5.          Maintenance
of Property; Insurance.  Keep
all property useful and necessary in its business in good working order and
condition, except where the failure to do so would not reasonably be expected
to have a Material Adverse Effect; maintain with financially sound and
reputable insurance companies insurance on its property in at least such
amounts and against at least such risks as are usually insured against in the
same general area by companies engaged in the same or a similar business,
except where the failure to do so would not reasonably be expected to have a
Material Adverse Effect, and furnish to the Administrative Agent, upon request,
full information as to the insurance carried.

6.6.          Inspection
of Property; Books and Records; Discussions.  Keep proper books of records and account in
which full, true and correct entries, in all material respects in conformity
with all Requirements of Law and sufficient to permit the preparation of
financial statements in accordance with GAAP, shall be made of all dealings and
transactions in relation to its business and activities, except, in the case of
Requirements of Law, where the failure to do so could not reasonably be
expected to have a Material Adverse Effect; and permit representatives of the
Administrative Agent or any Lender to visit and inspect any of its properties
and examine and make abstracts from any of its books and records at any
reasonable time and as often as may reasonably be desired and upon at least
three days prior notice or such lesser period of time as may be acceptable to
the Borrower or the relevant Restricted Subsidiary, as the case may be, and to
discuss the business, operations, properties and financial and other condition
of the Borrower and its Restricted Subsidiaries with officers and employees of
the Borrower and its Restricted Subsidiaries and with its independent certified
public accountants (provided that with respect to Restricted
Subsidiaries, other than during the existence of a Default, the Borrower shall
have complied with this obligation if it shall have used its commercially
reasonable efforts to cause its Restricted Subsidiaries to allow the
Administrative Agent and/or the applicable Lender pursuant to the foregoing
terms and conditions to visit and inspect the properties of such Restricted
Subsidiaries and examine and make abstracts from any of the books and records
of such Restricted Subsidiaries and to discuss the business, operations,
properties and financial and other condition of such Restricted Subsidiaries
with officers and employees of such Restricted Subsidiaries and with their
independent certified public accountants).

6.7.          Notices.  Promptly after obtaining knowledge thereof,
notify the Administrative Agent and each Lender of:

(a)  the occurrence of any Default;

(b)  any (i) default or event of default under any
Contractual Obligation of the Borrower or any Subsidiary or (ii) litigation,
proceeding or, if known to the Borrower, investigation which may exist at any
time between the Borrower or any Subsidiary and any Governmental Authority,
which in either case, if not cured or if adversely determined, as the case may
be, could reasonably be expected to have a Material Adverse Effect;

(c)  any litigation or proceeding affecting the
Borrower or any Subsidiary or any “affiliated person” of the Borrower or any
Subsidiary within the meaning of the Investment Company Act in which (i) the
amount involved is $7,500,000 or more and not

 45
 

covered by insurance or
(ii) injunctive or similar relief is sought and which, in the case of this clause
(ii), could reasonably be expected to have a Material Adverse Effect;

(d)  the following events, as soon as possible and
in any event within 30 days after the Borrower knows or has reason to know
thereof:  (i) the occurrence or expected
occurrence of any Reportable Event with respect to any Plan, or any withdrawal
from, or the termination, Reorganization or Insolvency of any Multiemployer
Plan or (ii) the institution of proceedings or the taking of any other action
by the PBGC or the Borrower or any Commonly Controlled Entity or any
Multiemployer Plan with respect to the withdrawal from, or the terminating,
Reorganization or Insolvency of, any Plan;

(e)  any suspension or termination of the
registration of any Subsidiary or other Investment Firm as an investment
adviser under the Investment Advisers Act, or of any registration as a
broker-dealer under the Securities Acts or under any applicable state statute
which is material to the business thereof; 

(f)  any event which could reasonably be expected
to have a Material Adverse Effect;

(g)  any public announcement by S&P, Fitch or
Moody’s of any change in the Debt Rating; 

(h)  the creation or acquisition of any new
Subsidiary; and 

(i)  the remarketing and/or replacement of the
Feline Prides II Senior Notes.

Each notice pursuant to this Section 6.7 shall be accompanied by a
statement of a Responsible Officer setting forth details of the occurrence
referred to therein and stating what action the Borrower proposes to take with
respect thereto, if any.

6.8.          Pledges.  Promptly upon acquisition by the Borrower or
any Restricted Subsidiary of any Specified Equity Interest (as defined below),
execute and deliver or cause to be executed and delivered to the Administrative
Agent, with a copy to the Administrative Agent’s counsel, a Pledge Agreement
Supplement (which shall be in form and substance reasonably satisfactory to the
Administrative Agent) with respect to the pledge of such Specified Equity
Interest, together with evidence in form and substance reasonably satisfactory
to the Administrative Agent that all deliveries, filings, recordings,
registrations and other actions (including the delivery of any certificates
representing such equity interest, together, in the case of stock certificates,
with an undated transfer power, in form and substance reasonably satisfactory
to the Administrative Agent, for each such certificate executed in blank by a
duly authorized officer of the pledgor thereof, and the filing of duly executed
financing statements on form UCC-1) that are necessary or, in the opinion of
the Administrative Agent, desirable to perfect and protect the Liens created by
such Pledge Agreement Supplement have been completed.  For purposes of the foregoing, “Specified
Equity Interest” means (a) any equity interest directly owned by the
Borrower in a Subsidiary or an Investment Firm that is not a Subsidiary
Guarantor; and (b) any equity interest owned by a wholly-owned Restricted
Subsidiary in another Restricted Subsidiary or in an Investment Firm; provided
that (i) neither

 46
 

the Borrower nor any Restricted Subsidiary shall be
required to pledge to the Administrative Agent more than 65% of the equity
interests of any Foreign Subsidiary; (ii) no Foreign Subsidiary shall be
required to pledge any equity interest in any of its Subsidiaries; (iii) the
Borrower shall not be required to pledge any of the equity interests in the
Capital Trust; and (iv) neither the Borrower nor any Restricted Subsidiary
shall be required to pledge equity interests in any entity acquired or created
after the Closing Date so long as not more than 5% of pro forma Adjusted
Consolidated EBITDA is attributable to such entity; provided, further,
that notwithstanding the foregoing proviso, the Borrower will take all actions
necessary to assure that at all times not less than 90% of pro forma
Consolidated EBITDA is attributable to the Borrower and/or the Restricted
Subsidiaries and/or entities with respect to which the Borrower or a Restricted
Subsidiary has pledged all of the equity interests owned by the Borrower or
such Restricted Subsidiary.

6.9.          Guarantees.  Promptly (and in any event within 10 days)
after any Person becomes a wholly-owned Domestic Subsidiary of the Borrower
(excluding the Capital Trust and any Unrestricted Subsidiary that is not
directly owned by the Borrower), cause such Person to (a) become a guarantor by
executing and delivering to the Administrative Agent, with a copy to the
Administrative Agent’s counsel, a counterpart of the Subsidiary Pledge
Agreement (in the case of any such Person that, pursuant to Section 6.8,
is also required to pledge any equity interest owned by such Person) or the
Subsidiary Guaranty (in the case of any Person that is not required to pledge
any equity interest pursuant to Section 6.8) or, in each case, such
other document as the Administrative Agent shall deem appropriate for such
purpose; and (b) deliver to the Administrative Agent documents of the types
referred to in Sections 5.1(e), (f) and (g) and, if
requested by the Administrative Agent, a favorable opinion of counsel to such
Person (which shall cover, among other things, the legality, validity, binding
effect and enforceability of the documentation referred to in clause (a)),
all in form, content and scope reasonably satisfactory to the Administrative
Agent.

SECTION 7.  NEGATIVE
COVENANTS

The Borrower hereby agrees that, from and after the
Closing Date and so long as the Commitments remain in effect or any amount is
owing to any Lender or the Administrative Agent hereunder or under any other
Loan Document, the Borrower shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly:

7.1.          Financial Condition Covenants.

(a)  Interest
Coverage Ratio.  Permit the
ratio of (i) Consolidated EBITDA to (ii) Consolidated Interest Expense for any
Computation Period to be less than 3.00 to 1.00.

(b)  Leverage Ratio.  Permit the Leverage Ratio to exceed 3.50 to
1.00 as of (i) the last day of any Computation Period; or (ii) February 18,
2008 (or, if arrangements have been made to exchange, refinance or replace any
Feline Prides II Senior Notes as of February 18, 2008 but settlement of funds
therefor does not occur until after such date, on the date of such settlement
(but not later than February 22, 2008)).

 47
 

7.2.          Limitation
on Debt.  Create, incur,
assume or suffer to exist any Indebtedness, except:

(a)  Indebtedness under this Agreement and the
other Loan Documents;

(b)  Indebtedness of any Restricted Subsidiary
owing to the Borrower or any other Restricted Subsidiary;

(c)  Indebtedness of any Restricted Subsidiary
incurred to finance its working capital (or the working capital of any of its
Subsidiaries that are Restricted Subsidiaries), in an aggregate principal
amount not exceeding as to any Restricted Subsidiary $25,000,000 at any time
outstanding;

(d)  Indebtedness of the Borrower and its
Restricted Subsidiaries incurred to finance its acquisition of fixed or capital
assets (whether pursuant to a deferred purchase arrangement with a vendor, a
loan, a Financing Lease or otherwise) in an aggregate principal amount not
exceeding $25,000,000 at any time outstanding;

(e)  Indebtedness of a Person which becomes a
Restricted Subsidiary after the date hereof; provided that (i) such
Indebtedness existed at the time such Person became a Restricted Subsidiary and
was not created in anticipation thereof and (ii) immediately after such Person
becomes a Restricted Subsidiary, no Default shall have occurred and be
continuing;

(f)  Subordinated Indebtedness;

(g)  Indebtedness of the Borrower and its
Restricted Subsidiaries existing on the date hereof and described on Schedule
7.2(g), and any Indebtedness exchanged for, or refinancing or replacing,
any such scheduled Indebtedness that (i) has economic terms, as of the date of
issuance, consistent with market terms for a similarly creditworthy issuer and
(ii) has other terms, as a whole, not more onerous to the Borrower or the
relevant Restricted Subsidiary than the applicable scheduled Indebtedness, provided
that no Indebtedness directly or indirectly exchanged for, or refinancing or
replacing, Feline Prides II Senior Notes (“FP Replacement Debt”) shall
have any scheduled amortization prior to February 17, 2010;

(h)  Indebtedness of the type described in clause
(g) of the definition of Indebtedness incurred by the Borrower or any
Restricted Subsidiary in the ordinary course of business with reputable
financial institutions and not for speculative purposes;

(i)  Indebtedness in the nature of deferred
compensation to employees;

(j)  Indebtedness of any Restricted Subsidiary in
an aggregate principal amount not exceeding $50,000,000 at any time
outstanding; provided that the sum of all Indebtedness of all Restricted
Subsidiaries under this Section 7.2(j) shall not exceed $50,000,000 at
any time outstanding;

 48

(k)  unsecured Indebtedness of the Borrower owing
to any Restricted Subsidiary or any Affiliate of the Borrower (excluding any
Unrestricted Subsidiary);

(l)  unsecured Indebtedness of any Restricted
Subsidiary or the Borrower owing to any Unrestricted Subsidiary in an aggregate
amount not to exceed $5,000,000;

(m)  Guarantee Obligations in respect of
Indebtedness otherwise permitted under this Section 7.2; and

(n)  senior unsecured notes, bonds, debentures or
similar instruments of the Borrower, including Zero-Coupon Bonds and COBRAs
(but, for the avoidance of doubt, excluding any Indebtedness described in clause
(g) above), not at any time exceeding $750,000,000; provided that
such instruments shall not be guaranteed by any Person that is not a Loan
Party.

Notwithstanding the foregoing, the Borrower shall not
permit any Feline Prides II Senior Notes, or any FP Replacement Debt that has
any scheduled amortization prior to May 10, 2012, to be outstanding at any time
after November 17, 2009 unless, at such time, (i) the sum of all cash and
Cash Equivalents of the Restricted Loan Parties plus all unused availability
hereunder exceeds the aggregate principal amount of all such Feline Prides II
Senior Notes and all such FP Replacement Debt and (ii) the prepayment in
full of all such Feline Prides II Senior Notes and all such FR Replacement Debt
would be permitted under Section 7.8.

7.3.          Limitation
on Liens.  Create, incur,
assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, except for:

(a)  Liens for taxes, assessments and other
governmental charges not yet due or which are being contested in good faith by
appropriate proceedings; provided
that adequate reserves with respect thereto are maintained on the books of the
Borrower or the applicable Restricted Subsidiary, as the case may be, in
conformity with GAAP;

(b)  carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 60 days or which
are being contested in good faith by appropriate proceedings;

(c)  pledges or deposits in connection with
workers’ compensation, unemployment insurance and other social security
legislation;

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

(e)  easements, rights-of-way, restrictions and
other similar encumbrances incurred in the ordinary course of business which,
in the aggregate, are not substantial in amount and which do not in any case
materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the Borrower or such
Restricted Subsidiary;

 49
 

(f)  Liens securing Indebtedness of the Borrower
or any Restricted Subsidiary permitted by Section 7.2(d) or 7.2(j)
incurred to finance the acquisition of fixed or capital assets; provided
that (i) such Liens shall be created substantially simultaneously with the
acquisition of such fixed or capital assets, (ii) such Liens do not at any time
encumber any property other than the property financed by such Indebtedness,
(iii) the amount of Indebtedness secured thereby is not increased and (iv) the
principal amount of Indebtedness secured by such Lien shall at no time exceed
the purchase price of such property;

(g)  Liens on the property or assets of a Person
which becomes a Restricted Subsidiary after the date hereof securing
Indebtedness permitted by Section 7.2(e); provided that (i) such Liens
existed at the time such Person became a Restricted Subsidiary and were not
created in anticipation thereof, (ii) any such Lien is not spread to cover any
property or assets of such Person after the time such Person becomes a
Restricted Subsidiary, and (iii) the amount of Indebtedness secured thereby is
not increased;

(h)  Liens arising by reason of any judgment,
decree or order of any court or other Governmental Authority, (i) if
appropriate legal proceedings which have been initiated for the review of such
judgment, decree or order are being diligently prosecuted and shall not have
been finally terminated or the period within which such proceedings may be
initiated shall not have expired or (ii) if such judgment, decree or order
shall have been discharged within 45 days of the entry thereof or execution
thereof has been stayed pending appeal;

(i)  Liens created pursuant to the Pledge
Agreements; and

(j)  Liens existing, or provided for under
arrangements existing, as of the date hereof as described on Schedule 7.3(j).

7.4.          Limitation
on Fundamental Changes.  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 of
its property, business or assets (each a “disposition”), or make any material
change in its present method of conducting business, unless (a) with respect to
a merger, consolidation or amalgamation of a Restricted Subsidiary, if prior to
such event the Borrower owned in excess of a 50% ownership interest, then after
such event the Borrower shall (i) own in excess of a 50% ownership interest in, or (ii) be the managing member or general
partner (or a Person with similar rights and obligations) of (whether directly
or through a wholly-owned Restricted Subsidiary), or (iii) have no ownership
interest in, the surviving Person of such merger,
consolidation or amalgamation, (b) with respect to the liquidation, winding up
or dissolution of a direct or indirect Restricted Subsidiary, the assets of
such Person shall have been transferred to the Borrower or another Restricted
Loan Party and the other shareholders, partners or members of such Restricted
Subsidiary, and (c) with respect to any disposition described above, the Net
Proceeds thereof shall have been applied as set forth in Section 3.2 to
the extent required.

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7.5.          Limitation
on Sale of Assets.  Convey,
sell, lease, assign, transfer or otherwise dispose (including in connection
with sale leaseback transactions) of any of its property, business or assets
(including receivables and leasehold interests), whether now owned or hereafter
acquired, or, in the case of any Restricted Subsidiary, issue or sell any
shares of such Restricted Subsidiary’s Capital Stock to any Person other than
the Borrower or a wholly-owned Restricted Subsidiary, except:

(a)  the sale or other disposition of property in
the ordinary course of business;

(b)  the sale or discount without recourse of
accounts receivable arising in the ordinary course of business in connection
with the compromise or collection thereof;

(c)  any Shareholder Asset Sale; provided
that the Borrower shall comply with the terms of Section 3.2;

(d)  the sale or other disposition of (i) all or
substantially all the Capital Stock of a Subsidiary or an Investment Firm
(including both Capital Stock held by the Borrower and its Restricted
Subsidiaries and by the other holders of Capital Stock of such Subsidiary or
Investment Firm) or (ii) all or substantially all the assets of a Restricted
Subsidiary or Investment Firm; provided
that the Borrower shall comply with the terms of Section 3.2; and

(e)  the sale of assets at fair value, as
determined in good faith by the Borrower’s Board of Directors, so long as no
Default exists or would result therefrom, the Borrower is in compliance with
the financial covenants on a pro forma basis and the aggregate amount of all
outstanding non-cash consideration (excluding Cash Equivalents and readily
marketable public securities) received by the Borrower and its Restricted
Subsidiaries pursuant to all such sales does not at any time exceed
$35,000,000.

7.6.          Limitation
on Leases.  Permit the amount
paid by the Borrower for lease obligations under operating leases to which the
Borrower is a party (including any such leases entered into in connection with
sale leaseback transactions) for any fiscal year to exceed $5,000,000 in the
aggregate or permit a Restricted Subsidiary to make any such payment in respect
of lease obligations except to the extent that any such payment is made out of
that portion of its revenues designated as Operating Cash Flow (and not Free
Cash Flow) under the relevant Revenue Sharing Agreement.

7.7.          Limitation
on Transactions with Affiliates. 
Except as described on Schedule 7.7 and as otherwise expressly
permitted under this Agreement, enter into any transaction, including any
purchase, sale, lease or exchange of property or the rendering of any service,
with any Affiliate (other than the Borrower or a Restricted Subsidiary) unless
such transaction is (a) otherwise expressly permitted under this Agreement or
(b) upon fair and reasonable terms no less favorable to the Borrower or such
Restricted Subsidiary, as the case may be, than it would obtain in a comparable
arm’s length transaction with a Person which is not an Affiliate; provided
that the following transactions shall be permitted under this Section 7.7:
(i) providing office space and administrative services to Investment Firms and
Unrestricted Subsidiaries, (ii) providing other business services to Investment
Firms and Unrestricted

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Subsidiaries in the ordinary course of business and
(iii) transactions among the Borrower or any Restricted Subsidiary or any
officer, director, individual stockholder, partner or member (or an entity
wholly owned by such an individual) and any Fund or other Investment Company
sponsored by the Borrower or any Restricted Subsidiary or for which the
Borrower or any Restricted Subsidiary provides advisory, administrative,
supervisory, management, consulting or similar services, that are otherwise
permissible under the Investment Company Act, the Investment Advisers Act and
the applicable management contracts.

7.8.          Limitation on Certain Payments.  Make (a) any payment of dividends, stock
repurchases or redemptions or other distributions to shareholders of the
Borrower, (b) any payment of principal of or interest on any subordinated debt,
or (c) any prepayment, early redemption, repurchase prior to maturity or other
acquisition or defeasance of any other Indebtedness if, in any such case, the
pro forma Leverage Ratio after giving effect to the relevant payment or other
transaction described above would be greater than (i) if the Borrower’s Debt
Rating is BBB- (or the equivalent) or higher, 3.0 to 1.00; or (ii) otherwise
2.50 to 1.00.

7.9.          Limitation
on Changes in Fiscal Year. 
Permit any fiscal year to end on a day other than December 31.

7.10.        Limitations on Investments in
Unrestricted Subsidiaries.  Make any
loan, advance or other extension of credit to, or any other investment in, an
Unrestricted Subsidiary; provided that the Borrower may make loans,
advances and other extensions of credit to, and other investments in,
Unrestricted Subsidiaries so long as no Event of Default exists or would result
therefrom.

7.11.        Limitation on Investments by
Unrestricted Subsidiaries.  Permit
any Unrestricted Subsidiary to have any ownership interest in the Borrower or
any Restricted Subsidiary.

SECTION 8.  EVENTS OF DEFAULT

If any of the following
events shall occur and be continuing:

(a)  The Borrower shall fail to pay any principal
of any Loan when due in accordance with the terms hereof; or the Borrower shall
fail to pay any interest on any Loan, or any other amount payable hereunder,
within five days after any such interest or other amount becomes due in
accordance with the terms hereof; or

(b)  Any representation or warranty made or deemed
made by the Borrower or any other Loan Party herein or in any other Loan
Document or which is contained in any certificate, document or financial or
other statement furnished by it at any time under or in connection with this
Agreement or any such other Loan Document shall prove to have been incorrect in
any material respect on or as of the date made or deemed made; or

(c)  The Borrower or any other Loan Party shall
default in the observance or performance of any agreement contained in (i) Section
6.4, 6.7(a), 6.8 or 6.9 or Section 7 and, if
such default is by a Loan Party other than the Borrower, such default shall

 52
 

continue unremedied for a
period of 10 days after an officer of the Borrower obtains  knowledge thereof; or (ii) Section 5 of
either Pledge Agreement; or

(d)  The Borrower or any other Loan Party shall
default in the observance or performance of any other agreement contained
herein or in any other Loan Document (other than as provided in subsections
(a) and (c) of this Section), and such default shall continue
unremedied for a period of 30 days after an officer of the Borrower obtains
knowledge thereof; or

(e)  Any default shall occur under the terms
applicable to any Indebtedness or Guarantee Obligation (excluding, in each
case, the Loans) of the Borrower or any Subsidiary (excluding Indebtedness of
any Unrestricted Subsidiary for which neither the Borrower nor any Restricted
Subsidiary has any liability) in an aggregate principal amount (for all
Indebtedness and Guarantee Obligations so affected) exceeding $15,000,000 and
such default (i) results from the failure to pay any principal of or interest
on such Indebtedness or Guarantee Obligation when due (subject to any
applicable grace period, but not exceeding 30 days) or (ii) causes, or permits
the holder or holders of such Indebtedness or the beneficiary or beneficiaries
of such Guarantee Obligation (or a trustee or agent on behalf of such holder or
holders or beneficiary or beneficiaries) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or such
Guarantee Obligation to become payable; or

(f)  (i)  The Borrower or any Restricted Subsidiary
shall commence any case, proceeding or other action (A) under any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part
of its assets, or the Borrower or any Restricted Subsidiary shall make a
general assignment for the benefit of its creditors; or (ii) there shall be
commenced against the Borrower or any Restricted Subsidiary any case,
proceeding or other action of a nature referred to in clause (i) above
which (A) results in the entry of an order for relief or any such adjudication
or appointment or (B) remains undismissed, undischarged or unbonded for a
period of 60 days; or (iii) there shall be commenced against the Borrower or
any Restricted Subsidiary, any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process
against all or any substantial part of its assets which results in the entry of
an order for any such relief which shall not have been vacated, discharged, or
stayed or bonded pending appeal within 60 days from the entry thereof; or (iv)
the Borrower or any Restricted Subsidiary shall take any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any of the
acts set forth in clause (i), (ii) or (iii) above; or (v)
the Borrower or any Restricted Subsidiary shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its debts as they
become due; or

 53
 

(g)  (i)  Any Person shall engage in any “prohibited
transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code)
involving any Plan maintained by the Borrower or any Commonly Controlled
Entity, (ii) any “accumulated funding deficiency” (as defined in Section 302 of
ERISA), whether or not waived, shall exist with respect to any Plan, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to
have a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for
purposes of Title IV of ERISA, (v) the Borrower or any Commonly Controlled
Entity shall, or in the reasonable opinion of the Required Lenders is likely
to, incur any liability in connection with a withdrawal from, or the Insolvency
or Reorganization of, a Multiemployer Plan or (vi) any other event or condition
shall occur or exist, with respect to a Plan; and in each case in clauses
(i) through (vi) above, such event or condition, together with all
other such events or conditions, if any, could reasonably be expected to have a
Material Adverse Effect; or

(h)  One or more judgments or decrees shall be
entered against the Borrower or any Restricted Subsidiary involving in the
aggregate a liability (not paid or fully covered by insurance or
indemnification) of $15,000,000 or more, and all such judgments or decrees
shall not have been vacated, discharged, stayed or bonded pending appeal within
60 days from the entry thereof; or

(i)  (i)  Any Loan Document shall cease, for any
reason, to be in full force and effect, or any Loan Party that is a party
thereto shall so assert, (ii) any Loan Party shall contest in any manner the
validity or enforceability of any Loan Document or (iii) the Lien created by
any of the Pledge Agreements shall cease to be enforceable and of the same
effect and priority purported to be created thereby; or

(j)  A Change of Control shall have occurred;

then, and in any such event, (A) if such event is an
Event of Default specified in Section 8(f)
with respect to the Borrower, automatically the Commitments shall immediately
terminate and the Loans hereunder (with accrued interest thereon) and all other
amounts owing under this Agreement shall immediately become due and payable,
and (B) if such event is any other Event of Default, either or both of the
following actions may be taken:  (i) with
the consent of the Required Lenders, the Administrative Agent may, or upon the request
of the Required Lenders, the Administrative Agent shall, by notice to the
Borrower declare the Commitments to be terminated forthwith, whereupon the
Commitments shall immediately terminate; and (ii) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower,
declare the Loans hereunder (with accrued interest thereon) and all other
amounts owing under this Agreement to be due and payable forthwith, whereupon
the same shall immediately become due and payable.  Except as expressly provided above in this
Section, presentment, demand, protest and all other notices of any kind are
hereby expressly waived.

 54
 

SECTION 9.  THE ADMINISTRATIVE AGENT

9.1.          Appointment
and Authorization.  Each
Lender hereby irrevocably appoints Bank of America to act on its behalf as the
Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative
Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms hereof or thereof, together
with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for
the benefit of the Administrative Agent and the Lenders, and neither the Borrower nor any Subsidiary shall
have rights as a third party beneficiary of any such provision (provided that
the Borrower shall have the rights granted to the Borrower pursuant to Section
9.6).

9.2.          Rights as
a Lender.  The Person serving
as the Administrative Agent hereunder shall have the same rights and powers in
its capacity as a Lender as any other Lender and may exercise the same as
though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or the context otherwise requires,
include the Person serving as the Administrative Agent hereunder in its
individual capacity.  Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial
advisor or in any other advisory capacity for and generally engage in any kind
of business with the Borrower or any Subsidiary or other Affiliate thereof as
if such Person were not the Administrative Agent hereunder and without any duty
to account therefor to the Lenders.

9.3.          Exculpatory Provisions.  The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents.  Without limiting the
generality of the foregoing, the Administrative Agent:

(a)      shall not be subject to any fiduciary or
other implied duty, regardless of whether a Default has occurred and is
continuing;

(b)     shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent is required to exercise as directed in writing by
the Required Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or applicable law; and

(c)     shall not, except as expressly set forth
herein and in the other Loan Documents, have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to the
Borrower or any of its Affiliates that is communicated to or obtained by the
Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

The Administrative Agent
shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as the Administrative Agent
shall believe in good faith shall be necessary under the circumstances) or (ii)
in the absence of its own gross negligence or

 55
 

willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until notice describing such
Default is given to the Administrative Agent by the Borrower or a Lender.

The Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with this
Agreement or any other Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any
covenant, agreement or other term or condition set forth herein or therein or
the occurrence of any Default, (iv) the validity, enforceability, effectiveness
or genuineness of this Agreement, any other Loan Document or any other
agreement or document or (v) the satisfaction of any condition set forth in Section
5 or elsewhere herein, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent.

9.4.          Reliance
by Administrative Agent.  The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed
in good faith by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person.  The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. 
In determining compliance with any condition hereunder to the making of
a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the
Administrative Agent may presume that such condition is satisfactory to such
Lender unless the Administrative Agent shall have received notice to the
contrary from such Lender prior to the making of such Loan.  The Administrative Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants
and other experts selected by it, and shall not be liable for any action taken
or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

9.5.          Delegation
of Duties.  The Administrative
Agent may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Loan Document by or through any one or more sub-agents
appointed by the Administrative Agent. 
The Administrative Agent and any such sub-agent may perform any
and all of its duties and exercise its rights and powers by or through their
respective Related Parties.  The
exculpatory provisions of this Article shall apply to any such sub-agent
and to the Related Parties of the Administrative Agent and any such sub-agent,
and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as
Administrative Agent.

9.6.          Resignation
of Administrative Agent.  The
Administrative Agent may at any time give notice of its resignation to the
Lenders and the Borrower.  Upon receipt
of any such notice of resignation, the Required Lenders shall have the right,
in consultation with the Borrower, to appoint a successor, which shall be a
bank with an office in the United States, or an Affiliate of any such bank with
an office in the United States.  If no
such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring

 56
 

Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent meeting the
qualifications set forth above; provided that if the Administrative
Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents (except that in the case of any collateral security held by the
Administrative Agent on behalf of the Lenders under any Loan Document, the
retiring Administrative Agent shall continue to hold such collateral security
until such time as a successor Administrative Agent is appointed) and
(2) all payments, communications and determinations provided to be made
by, to or through the Administrative Agent shall instead be made by or to each
Lender directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above. 
Upon the acceptance of a successor’s appointment as Administrative Agent
hereunder, such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from all of its duties
and obligations hereunder and under the other Loan Documents (if not already
discharged therefrom as provided above). 
The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. 
After the retiring Administrative Agent’s resignation hereunder and
under the other Loan Documents, the provisions of this Article and Section 10.5
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any
action taken or omitted to be taken by any of them while the retiring
Administrative Agent was acting as Administrative Agent.

Any resignation by Bank of
America as Administrative Agent pursuant to this Section shall also constitute
its resignation as Swingline Lender. 
Upon the acceptance of a successor’s appointment as Administrative Agent
hereunder, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring Swingline Lender, and
(b) the retiring Swingline Lender shall be discharged from all of its duties
and obligations as such hereunder and under the other Loan Documents.

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

9.8.          Administrative
Agent May File Proofs of Claim. 
In the case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition
or other judicial proceeding relative to any Loan Party, the Administrative
Agent (irrespective of whether the principal of any Loan shall then be due and
payable and whether the Administrative Agent shall have made any demand on the
Borrower) shall be entitled and empowered, by intervention in such proceeding
or otherwise:

 57
 

(a)      to file and prove a claim for the whole
amount of the principal and interest owing and unpaid in respect of the Loans
and all other obligations of any Loan Party that are owing and unpaid and to
file such other documents as may be necessary or advisable in order to have the
claims of the Lenders and the Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Lenders
and the Administrative Agent and their respective agents and counsel and all
other amounts due the Lenders and the Administrative Agent hereunder) allowed
in such judicial proceeding; and

(b)      to collect and receive any monies or
other property payable or deliverable on any such claims and to distribute the
same;

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Lender to make such payments
to the Administrative Agent and, if the Administrative Agent shall consent to
the making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amount due the Administrative Agent under Section 2.4
or 10.5.

Nothing contained herein
shall be deemed to authorize the Administrative Agent to authorize or consent
to or accept or adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment or composition affecting the obligations of the
Borrower hereunder or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

9.9.          Collateral and Guaranty Matters.  The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion,

(a)  to release any Lien on any
property granted to or held by the Administrative Agent under any Loan Document
(i) upon termination of the Commitments and payment in full of the Loans and
all other obligations under the Loan Documents (other than contingent
indemnification obligations), (ii) that is sold or to be sold as part of or in
connection with any sale permitted hereunder or under any other Loan Document
or (iii) if approved, authorized or ratified in writing by the Supermajority
Lenders or, if required by Section 10.1, all Lenders; and

(b)  to release any guarantor
from its obligations under any guarantee if such Person ceases to be a
wholly-owned Restricted Subsidiary or a first tier wholly-owned Unrestricted
Subsidiary as a result of a transaction permitted hereunder.

Upon request by the
Administrative Agent at any time, the Supermajority Lenders will confirm in
writing the Administrative Agent’s authority to release any guarantor from its
obligations under any guarantee pursuant to this Section 9.9.  The Administrative Agent will use
commercially reasonable efforts to notify the Lenders of any release of a Lien
pursuant to Section 9.9(a)(ii) or release of a guarantor pursuant to Section
9.9(b).

9.10.        Other Agents; Arranger and Managers.  None of the Lenders or other Persons
identified on the cover page or signature pages of this Agreement, or elsewhere
herein,

 58
 

as a “co-syndication agent,”
“co-documentation agent,” “co-agent,” “book manager,” “arranger” or “lead
arranger” shall have any right, power, obligation, liability, responsibility or
duty under this Agreement other than, in the case of a Person that is a Lender,
those applicable to all Lenders as such. 
Without limiting the foregoing, none of the Lenders or other Persons so
identified shall have or be deemed to have any fiduciary relationship with any
Lender.  Each Lender acknowledges that it
has not relied, and will not rely, on any of the Lenders or other Persons so
identified in deciding to enter into this Agreement or in taking or not taking
action hereunder.

SECTION 10.  MISCELLANEOUS

10.1.        Amendments
and Waivers.  (a)  Neither this Agreement nor any other Loan
Document, nor any terms hereof or thereof, may be amended, supplemented or
modified except in accordance with the provisions of this Section 10.1. 
The Required Lenders may, or, with the written consent of the Required
Lenders, the Administrative Agent may, from time to time, (x) enter into with
the Borrower written amendments, supplements or modifications hereto and to the
other Loan Documents for the purpose of adding any provisions to this Agreement
or the other Loan Documents or changing in any manner the rights of the Lenders
or of the Borrower or other relevant Loan Party hereunder or thereunder or (y)
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 Loan Documents or any
Default and its consequences; provided
that no such waiver and no such amendment, supplement or modification shall (i)
reduce the amount or extend the scheduled date of final maturity of any Loan or
reduce the stated rate of any interest or fee payable hereunder or extend the
scheduled date of any payment thereof or increase the amount or extend the
expiration date of any Lender’s Commitment, in each case without the consent of
each Lender directly affected thereby, or (ii) amend, modify or waive any
provision of this Section or reduce the percentage specified
in the definition of Required Lenders or change any other provision specifying
the number or percentage of Lenders required to amend, waive or otherwise
modify any rights hereunder or under any other Loan Document or make any
determination or grant any consent hereunder or thereunder, or consent to the
assignment or transfer by the Borrower of any of its rights and obligations
under this Agreement and the other Loan Documents or release all or
substantially all of the Pledged Collateral or release any Loan Party from its
guarantee, in each case without the written consent of all the Lenders, or
(iii) amend, modify or waive any provision of Section 10.7 without the
written consent of all of the Lenders, or (iv) amend, modify or waive any
provision of Section 9 without the written consent of the then
Administrative Agent; provided, further, that no amendment,
waiver or consent shall, unless in writing and signed by the Swingline Lender
in addition to the Lenders required above, affect the rights or duties of the
Swingline Lender under this Agreement. 
Subject to the provisos in the prior sentence, any such waiver and any
such amendment, supplement or modification shall apply equally to each of the
Lenders and shall be binding upon the Borrower, the Lenders, the Administrative
Agent and all future holders of the Loans. 
In the case of any waiver, the Borrower, the Lenders and the
Administrative Agent shall be restored to their former positions and rights
hereunder and under the other Loan Documents, and any Default waived shall be
deemed to be cured and not continuing; no such waiver shall extend to any
subsequent or other Default or impair any right consequent thereon.

 59

(b)  In addition to amendments effected pursuant
to the foregoing paragraph (a), this Agreement shall be amended to
include a prospective Lender as a party hereto upon the execution and delivery
of a Joinder Agreement as contemplated in Section 2.3(c).

10.2.        Notices.  (a) 
Unless otherwise expressly provided herein, all notices, requests and
demands to or upon the respective parties hereto to be effective shall be in
writing (including by facsimile transmission and, subject to clause (c)
below, electronic mail transmission), and, unless otherwise expressly provided
herein, shall be deemed to have been duly given or made when delivered, or five
days after being deposited in the mail, postage prepaid, or, in the case of
facsimile, when received with electronic confirmation of receipt, addressed (i)
if to the Borrower, the Administrative Agent or the Swingline Lender, to the
address, facsimile number, electronic mail address or telephone number
specified for such Person on Schedule 10.2, (ii) if to any other Lender,
as set forth in its Administrative Questionnaire, and (iii) in the case of any
party to this Agreement, to such other address as such party may designate by
notice to the other parties hereto. 
Notwithstanding the foregoing, any notice, request or demand to or upon
the Administrative Agent or the Lenders pursuant to Section
2.2, 2.5, 2.8, 3.1, 3.3
or 3.8 shall not be effective until
received.

(b)  The Administrative Agent and the Lenders
shall be entitled to rely and act upon any notices (including telephonic
notices of requests for Swingline Loans) purportedly given by or on behalf of
the Borrower even if (i) such notices were not made in a manner specified
herein, were incomplete or were not preceded or followed by any other form of
notice specified herein, or (ii) the terms of any telephonic notice, as
understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the
Administrative Agent, the Lenders and each of their respective Related Parties
from all losses, costs, expenses and liabilities resulting from the reliance by
such Person on each notice purportedly given by or on behalf of the
Borrower.  All telephonic notices to and
other communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

(c)  Electronic mail and Internet and intranet
websites may be used only to distribute routine communications, such as
financial statements and other information as provided in Section 6.2,
and to distribute Loan Documents for execution by the parties thereto and may
not be used for any other purpose.

(d)  The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR
ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER
MATERIALS OR THE PLATFORM.  In no event
shall the Administrative Agent or any of its Related Parties (collectively, the
“Agent Parties”) have any liability to the Borrower, any Lender or any
other Person for losses, claims, damages, liabilities or expenses of

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any kind (whether in tort, contract or otherwise)
arising out of the Borrower’s or the Administrative Agent’s transmission of
Borrower Materials through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Agent Party; provided,
that in no event shall any Agent Party have any liability to the Borrower, any
Lender or any other Person for indirect, special, incidental, consequential or
punitive damages (as opposed to direct or actual damages).

(e)  Each Public Lender agrees to cause at least
one individual at or on behalf of such Public Lender to at all times have
selected the “Private Side Information” or similar designation on the content
declaration screen of the Platform in order to enable such Public Lender or its
delegate, in accordance with such Public Lender’s compliance procedures and
applicable Law, including United States Federal and state securities Laws, to make
reference to Borrower Materials that are not made available through the “Public
Side Information” portion of the Platform and that may contain material
non-public information with respect to the Borrower or its securities for
purposes of United States Federal or state securities laws.

10.3.        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 Loan 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.

10.4.        Survival of
Representations and Warranties. 
All representations and warranties made hereunder, in the other Loan
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 through the Termination
Date.

10.5.        Expenses;
Indemnity; Waiver of Damages.

(a)        The Borrower agrees to pay (i) all
reasonable and documented out-of-pocket expenses incurred by the
Administrative Agent and its Related Parties (including Attorney Costs), in
connection with the syndication of the credit facility provided for herein, the
preparation, negotiation, execution, delivery and administration of this
Agreement and the other Loan Documents and any amendment, modification or
waiver of any provision hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), and (ii)  all
reasonable out-of-pocket expenses incurred by the Administrative
Agent or any Lender (including Attorney Costs of the Administrative Agent or
any Lender) in connection with the enforcement or protection of its rights
(A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the
Loans made hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such
Loans.

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(b)        The Borrower agrees to indemnify the
Administrative Agent (and any sub-agent thereof) and each Lender, and each
Related Party of any of the foregoing Persons (each such Person, an “Indemnitee”),
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including Attorney Costs) incurred
by any Indemnitee or asserted against any Indemnitee by any third party or by the
Borrower or any other Loan Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto of their respective obligations hereunder or
thereunder or the consummation of the transactions contemplated hereby or
thereby, (ii) any Loan or the use or proposed use of the proceeds
therefrom, (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by the Borrower or any
Subsidiary, or any Environmental Liability related in any way to the Borrower
or any Subsidiary, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by the
Borrower or any other Loan Party, and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses (x) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee or (y) result
from a claim brought by the Borrower or any other Loan Party against an
Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder
or under any other Loan Document, if the Borrower or such Loan Party has
obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction.

(c)        Reimbursement by Lenders.  To the extent that the Borrower for any
reason fails to indefeasibly pay any amount required under subsection (a)
or (b) above to be paid by it to the Administrative Agent (or any
sub-agent thereof) or any of its Related Parties, each Lender severally agrees
to pay to the Administrative Agent (or any such sub-agent) or such Related
Party, as the case may be, such Lender’s Commitment Percentage (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount, provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may
be, was incurred by or asserted against the Administrative Agent (or any such
sub-agent) in its capacity as such or against such Related Party acting for the
Administrative Agent (or any such sub-agent) in connection with such capacity.

(d)        Consequential Damages, Etc.  To the fullest extent permitted by applicable
law, the Borrower agrees that it will not assert, and hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential, exemplary or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or the use of the
proceeds thereof.  No Indemnitee shall be
liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications,
electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby
or thereby.

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(e)  Payments.  All amounts payable under this Section
10.5 shall be due not later than ten Business Days after demand therefor.

(f)        Survival.  The agreements in this Section 10.5
shall survive the resignation of the Administrative Agent, the replacement of
any Lender, the termination of the Commitments and the repayment, satisfaction
or discharge of all other obligations hereunder.

10.6.        Successors
and Assigns; Participations and Assignments.  (a) 
This Agreement shall be binding upon and inure to the benefit of the
Borrower, the Lenders, the Administrative Agent and their respective successors
and assigns, except that the Borrower may not assign or transfer any of its
rights or obligations under this Agreement without the prior written consent of
each Lender.

(b)  Any Lender may, in the ordinary course of its
commercial banking business and in accordance with applicable law, at any time
sell to one or more banks or other entities (“Participants”)
participating interests in any Loan owing to such Lender, any Commitment of
such Lender or any other interest of such Lender hereunder and under the other
Loan Documents.  In the event of any such
sale by a Lender of a participating interest to a Participant, such Lender’s
obligations under this Agreement to the other parties to this Agreement shall
remain unchanged, such Lender shall remain solely responsible for the
performance thereof, such Lender shall remain the holder of any such Loan for
all purposes under this Agreement and the other Loan Documents, and the
Borrower and the Administrative Agent shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement and the other Loan Documents.  Any agreement or instrument pursuant to which
a Lender sells such 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, except as to those
matters listed in the first proviso in Section 10.1(a).  The Borrower agrees that if amounts
outstanding under this Agreement are due or unpaid, or shall have been declared
or shall have become due and payable upon the occurrence of an Event of
Default, each Participant shall, to the maximum extent permitted by applicable
law, be deemed to have the right of setoff in respect of its participating
interest in amounts owing under this Agreement to the same extent as if the
amount of its participating interest were owing directly to it as a Lender
under this Agreement; provided
that, in purchasing such participating interest, such Participant shall be
deemed to have agreed to share with the Lenders the proceeds thereof as
provided in Section 10.7(a) as fully as if it were a Lender
hereunder.  The Borrower also agrees that
each Participant shall be entitled to the benefits of Sections 3.10, 3.11
and 3.12 with respect to its participation in the Commitments and the
Loans outstanding from time to time as if it was a Lender; provided
that, in the case of Section 3.11, such Participant shall have complied
with the requirements of said Section and provided, further,
that no Participant shall be entitled to receive any greater amount pursuant to
any such Section than the transferor Lender would have been entitled to receive
in respect of the amount of the participation transferred by such transferor
Lender to such Participant had no such transfer occurred.

(c)  Any Lender may, in the ordinary course of its
commercial banking business and in accordance with applicable law, at any time
and from time to time assign to any Lender or any affiliate thereof or, with
the consent of each of the Administrative Agent and, so long as no Event of
Default has been continuing for a period of 30 or more consecutive days, the
Borrower

 63
 

(which in each case shall not be unreasonably withheld
or delayed), to an additional bank or financial institution (an “Assignee”) all or any part of its rights and
obligations under this Agreement and the other Loan Documents pursuant to an
Assignment and Assumption, substantially in the form of Exhibit E,
executed by such Assignee, such assigning Lender (and, in the case of an
Assignee that is not then a Lender or an Affiliate thereof, by the
Administrative Agent and the Borrower) and delivered to the Administrative
Agent for its acceptance and recording in the Register; provided
that, in the case of any such assignment to an additional bank or financial
institution (other than an assignment of all the assigning Lender’s rights and
obligations with respect to the Commitments), the sum of the aggregate
principal amount of the Loans and the aggregate amount of the unused
Commitments being assigned and, if such assignment is of less than all of the
rights and obligations of the assigning Lender, the sum of the aggregate
principal amount of the Loans and the aggregate amount of the unused
Commitments remaining with the assigning Lender are each not less than
$5,000,000 (or such lesser amount as may be agreed to by the Borrower and the
Administrative Agent).  Upon such
execution, delivery, acceptance and recording pursuant to clause (e)
below, from and after the effective date determined pursuant to such Assignment
and Assumption, (x) the Assignee thereunder shall be a party hereto and, to the
extent provided in such Assignment and Assumption, have (in addition to any
such rights and obligations preferably held by it) the rights and obligations
of a Lender hereunder with a Commitment as set forth therein, and (y) the
assigning Lender thereunder shall, to the extent provided in such Assignment
and Assumption, be released from its obligations under this Agreement (and, in
the case of an Assignment and Assumption covering all or the remaining portion
of an assigning Lender’s rights and obligations under this Agreement, such
assigning Lender shall cease to be a party hereto).

(d)  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at the Administrative
Agent’s Office a copy of each Assignment and Assumption delivered to it and a
register (the “Register”) for the recordation
of the names and addresses of the Lenders and the Commitments of, and principal
amounts of the Loans owing to, each Lender from time to time.  The Borrower, the Administrative Agent and
the Lenders may (and, in the case of any Loan or other obligation hereunder not
evidenced by a Note, shall) treat each Person whose name is recorded in the
Register as the owner of a Loan or other obligation hereunder as the owner
thereof for all purposes of this Agreement and the other Loan Documents,
notwithstanding any notice to the contrary. 
Any assignment of any Loan or other obligation hereunder not evidenced
by a Note shall be effective only upon appropriate entries with respect thereto
being made in the Register.  The Register
shall be available for inspection by the Borrower or any Lender at any
reasonable time and from time to time upon reasonable prior notice.

(e)  Upon its receipt of an Assignment and
Assumption executed by an assigning Lender and an Assignee (and, in the case of
an Assignee that is not then a Lender or an Affiliate thereof, by the
Administrative Agent and the Borrower, if required) together with payment by
the Lenders parties thereto to the Administrative Agent of a registration and
processing fee of $3,500 (which fee the Administrative Agent may waive in its
sole and complete discretion), the Administrative Agent shall (i) promptly
accept such Assignment and Assumption and (ii) on the effective date determined
pursuant thereto record the information contained therein in the Register and give
notice of such acceptance and recordation to the Lenders and the Borrower.

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(f)  The Borrower authorizes each Lender to
disclose to any Participant or Assignee (each, a “Transferee”)
and any prospective Transferee approved by the Borrower (which approval shall
not be required if an Event of Default has been continuing for a period of 30
or more consecutive days), which approval, if required, shall not be
unreasonably withheld or delayed, subject to the provisions of Section 10.15,
any and all financial information in such Lender’s possession concerning the
Borrower and its Affiliates which has been delivered to such Lender by or on
behalf of the Borrower pursuant to this Agreement or which has been delivered
to such Lender by or on behalf of the Borrower in connection with such Lender’s
credit evaluation of the Borrower and its Affiliates prior to becoming a party
to this Agreement; provided
that prior to such disclosure each such prospective Transferee shall have
executed a confidentiality agreement substantially in the form of Exhibit F.

(g)  For avoidance of doubt, the parties to this
Agreement acknowledge that the provisions of this Section concerning
assignments of Loans and Notes relate only to absolute assignments and that
such provisions do not prohibit assignments creating security interests,
including any pledge or assignment by a Lender of any Loan or Note to any
Federal Reserve Bank in accordance with applicable law.

10.7.        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 8(f), 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 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.

(b)  In addition to any rights and remedies of the
Lenders provided by law, each Lender shall have the right, without prior notice
to the Borrower, any such notice being expressly waived by the Borrower to the
extent permitted by applicable law, upon any amount becoming due and payable by
the 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 Borrower.  Each Lender agrees promptly to notify the
Borrower 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.

10.8.        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

 65
 

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 Borrower and the Administrative
Agent.

10.9.        Severability.  Any provision of this Agreement which 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.

10.10.      Integration.  This Agreement and the other Loan Documents
represent the agreement of the 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 the subject matter hereof not expressly set forth or
referred to herein or in the other Loan Documents.

10.11.      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.

10.12.      Submission To
Jurisdiction; Waivers.  The
Borrower hereby irrevocably and unconditionally:

(a)  submits for itself and its property in any
legal action or proceeding relating to this Agreement and the other Loan
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 (or removed to) 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 Borrower at its address determined pursuant to Section 10.2(a) or at
such other address of which the Administrative Agent shall have been notified
pursuant thereto;

(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 any special, exemplary, punitive or
consequential damages.

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10.13.      Acknowledgements.  The Borrower hereby acknowledges that:

(a)  it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents;

(b)  none of the Arranger, the Administrative
Agent or any Lender has any fiduciary relationship with or duty to the Borrower
arising out of or in connection with this Agreement or any other Loan Document,
and the relationship between the Arranger, the Administrative Agent and the
Lenders, on one hand, and the 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 Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Borrower and the Lenders.

Without limiting the foregoing provisions of this Section
10.13, the Borrower acknowledges that (i) it is capable of evaluating and
understanding, and understands and accepts, the terms, risks and conditions of
the transactions contemplated hereby and by the other Loan Documents; (ii) in
connection with the process leading to such transactions, the Arranger and the
Administrative Agent is and has been acting solely as a principal and is not a
financial advisor, an agent or a fiduciary for the Borrower or any of its
Affiliates; (iii) neither the Arranger nor the Administrative Agent has assumed
or will assume an advisory, agency or fiduciary responsibility to the Borrower
or any of its Affiliates with respect to the transactions contemplated hereby
(regardless of whether any Agent Party has advised or is currently advising the
Borrower or any of its Affiliates on any other matter); (iv) neither the
Arranger nor the Administrative Agent has any obligation to the Borrower or any
of its Affiliates with respect to the transactions contemplated hereby except
as expressly set forth herein or in another Loan Document; (v) the Agent
Parties may be engaged in a broad range of transactions that involve interests
that differ from those of the Borrower and its Affiliates, and no Agent Party
has any obligation to disclose any of such interests by virtue of any advisory,
agency or fiduciary relationship; and (vi) neither the Arranger nor the
Administrative Agent has provided or will provide any legal, accounting,
regulatory or tax advice with respect to any of the transactions contemplated
hereby and the Borrower has consulted with its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate in
connection herewith.  In addition, the
Borrower waives and releases, to the fullest extent permitted by law, any claim
that it may have against the Arranger and the Administrative Agent for any
breach or alleged breach of any agency or fiduciary duty.

10.14.      WAIVERS OF
JURY TRIAL.  TO THE EXTENT PERMITTED BY
LAW, THE 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 LOAN DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.

10.15.      Confidentiality.  Each Lender agrees to keep confidential any
written or oral information (a) provided to it by or on behalf of the Borrower
or any Subsidiary pursuant to or in connection with this Agreement or (b)
obtained by such Lender based on a review of the books and records of the
Borrower or any Subsidiary; provided
that nothing herein shall prevent

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any Lender from disclosing any such information (i) to
the Administrative Agent or any other Lender or to any Person who evaluates,
approves, structures or administers the Loans on behalf of a Lender and who is
subject to this confidentiality provision, (ii) to any Transferee or
prospective Transferee which agrees in writing to comply with the provisions of
this Section, (iii) to its employees, directors, agents, attorneys, accountants
and other professional advisors who are directly involved in the execution of
the transactions contemplated by this Agreement and have been informed of their
obligations under this Section 10.15, (iv) upon the request or demand of
any Governmental Authority having jurisdiction over such Lender, (v) in
response to any order of any court or other Governmental Authority or as may
otherwise be required pursuant to any Requirement of Law (notice of which shall
be provided promptly to the Borrower), (vi) which has been publicly disclosed
other than in breach of this Agreement, or (vii) in connection with the
exercise of any remedy hereunder.

10.16.      Designation of Subsidiaries as
Restricted or Unrestricted.  The
Borrower may, by delivery to the Administrative Agent of a Designation
Certificate substantially in the form of Exhibit M, (a) concurrently
with the creation or acquisition (directly or indirectly) of a Subsidiary,
designate such Subsidiary as an Unrestricted Subsidiary (and, in the absence of
such designation, such Subsidiary shall be a Restricted Subsidiary); and (b) designate
any Unrestricted Subsidiary as a Restricted Subsidiary; provided that
the Borrower may not make any such designation pursuant to this Section
10.16 if a Default exists or would result therefrom.  The Borrower may not designate a Restricted
Subsidiary as an Unrestricted Subsidiary.

10.17.      Effect of
Amendment and Restatement. 
This Agreement amends and restates the Existing Credit Agreement in its
entirety.  After the effectiveness hereof
pursuant to Section 5, the provisions of the Existing Credit Agreement
shall be of no further force or effect, except for provisions thereof that by
their express terms survive termination thereof.

10.18.      USA Patriot Act.  Each Lender that is subject to the Act (as
defined below) and the Administrative Agent (for itself and not on behalf of
any Lender) hereby notifies the Borrower that pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Act.

 68

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

	
  

  	
  AFFILIATED MANAGERS GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ John Kingston, III

  
	
   

  	
   

  	
  Title: Executive Vice President, General Counsel and
  Secretary

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-1
 

 

	
  

  	
  BANK OF AMERICA,
  N.A.,

  
	
   

  	
  as
  Administrative Agent,

  
	
   

  	
  as Swingline
  Lender and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Joshua A. Podietz

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-2
 

 

	
  

  	
  THE BANK OF NEW
  YORK,

  
	
   

  	
  as a Co-Syndication
  Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Michael Pensari

  
	
   

  	
   

  	
  Title: V.P.

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-3
 

 

	
  

  	
  JPMORGAN CHASE
  BANK, N.A.,

  
	
   

  	
  as a
  Co-Syndication Agent and as a Lender

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ James R. Coffman

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-4
 

 

	
  

  	
  CALYON NEW YORK
  BRANCH

  
	
   

  	
  as a Co-Documentation
  Agent and as a Lender

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Sebastian Rocco

  
	
   

  	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ William S. Denton

  
	
   

  	
   

  	
  Managing
  Director

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-5
 

 

	
  

  	
  U.S. BANK
  NATIONAL ASSOCIATION,

  
	
   

  	
  as a Co-Syndication
  Agent and as a Lender

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Monika K. Sahaida

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-6
 

 

	
  

  	
  CITIZENS BANK OF
  MASSACHUSETTS,

  
	
   

  	
  as a
  Co-Documentation Agent and as a Lender

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Darcy L. Salinger

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-7
 

 

	
  

  	
  TD BANKNORTH,
  N.A.,

  
	
   

  	
  as a Co-Agent
  and as a Lender

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Charles A. Walker

  
	
   

  	
   

  	
  Title: Senior
  Vice President

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-8
 

 

	
  

  	
  UNION BANK OF
  CALIFORNIA, N.A.,

  
	
   

  	
  as a Co-Agent
  and as a Lender

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Clifford F. Cho

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-9
 

 

	
  

  	
  LASALLE BANK,
  NATIONAL ASSOCIATION,

  
	
   

  	
  as a Co-Agent
  and as a Lender

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   /s/ Amy K. Weihus

  
	
   

  	
   

  	
  Title: First VP

  
				

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 

 S-10

	
  

  	
  THE BANK OF NOVA SCOTIA,

  
	
   

  	
  as a Co-Agent and as a Lender

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Brian S. Allen

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-11
 

 

	
  

  	
  SOVEREIGN BANK,

  
	
   

  	
  as a Co-Agent and as a Lender

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth G. Ahrens

  
	
   

  	
   

  	
  Title: Senior Vice President

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-12
 

 

	
  

  	
  COMERICA BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Erica M. Krzeminski

  
	
   

  	
   

  	
  Title: Account Officer

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-13
 

 

	
  

  	
  SOCIETE GENERALE, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Helen Hsu

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-14
 

 

	
  

  	
  CHANG HWA COMMERCIAL BANK, LTD.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chen Yu Chen

  
	
   

  	
   

  	
  Title: VP & General Manager

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-15
 

 

	
  

  	
  FIRST COMMERCIAL BANK, New York Agency as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Ju

  
	
   

  	
   

  	
  Title: SVP & General Manager

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-16
 

 

	
  

  	
  MALAYAN BANKING BERHAD, NEW YORK BRANCH, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Fauzi Zulkifli

  
	
   

  	
   

  	
  Title: General Manager

  
	
   

  	
   

  	
   

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-17
 

 

	
  

  	
  E.SUN COMMERCIAL BANK, LTD., Los Angeles Branch as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Benjamin Lin

  
	
   

  	
   

  	
  Title: EVP & General Manager

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 S-18
 

 

	
  

  	
  TAIPEI FUBON COMMERCIAL BANK, as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sophia Jing

  
	
   

  	
   

  	
  Title: Vice President and General Manager

  

 

 

Signature Page for Affiliated
Managers Group

Second Amended and Restated Credit Agreement

 

 S-19

ANNEX I

PRICING GRID

	
  Pricing

  Level

  	
   

  	
  

  Debt Rating

  	
   

  	
  Applicable Margin for 

  Eurodollar Loans

  	
   

  	
  Applicable Margin For

  ABR Loans

  	
   

  	
  Commitment Fee Rate

  	
   

  
	
  1

  	
   

  	
  BBB+/Baa1
  or higher

  	
   

  	
  0.500

  	
  %

  	
  0.000

  	
  %

  	
  0.100

  	
  %

  
	
  2

  	
   

  	
  BBB/Baa2

  	
   

  	
  0.600

  	
  %

  	
  0.000

  	
  %

  	
  0.125

  	
  %

  
	
  3

  	
   

  	
  BBB-/Baa3

  	
   

  	
  0.800

  	
  %

  	
  0.000

  	
  %

  	
  0.150

  	
  %

  
	
  4

  	
   

  	
  BB+/Ba1

  	
   

  	
  1.100

  	
  %

  	
  0.000

  	
  %

  	
  0.200

  	
  %

  
	
  5

  	
   

  	
  BB/Ba2 or lower

  	
   

  	
  1.500

  	
  %

  	
  0.250

  	
  %

  	
  0.250

  	
  %

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]