Document:

EX 10.2

    EXHIBIT
      10.2

    

    

    Dated
      3rd
      April, 2006

    

    

    
 

    The
      Parties Named in the First Schedule hereto

    

    and

    

    Measurement
      Specialties, Inc.

    

    AGREEMENT

    

    for
      the purchase of the entire issued share capital of

    

    BetaTHERM
      Group Ltd.

    _____________________________

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    TABLE
      OF CONTENTS

    
      	 	 	 
	
              1.

            	
              DEFINITIONS
                AND INTERPRETATION

            	
              3

            
	
              2.

            	
              SALE
                OF SHARES

            	
              13

            
	
              3.

            	
              COMPLETION
                AND CONDITIONS

            	
              14

            
	
              4.

            	
              WARRANTIES
                AND INDEMNITIES

            	
              20

            
	
              5.

            	
              TERMINATION

            	
              23

            
	
              6.

            	
              REMEDIES

            	
              23

            
	
              7.

            	
              WORKING
                CAPITAL STATEMENTS.

            	
              34

            
	
              8.

            	
              MISCELLANEOUS
                PROVISIONS

            	
              36

            
	 	 	 
	
              FIRST
                SCHEDULE THE COMPANY AND THE VENDORS

            	
              42

            
	 	 	 
	
              SECOND
                SCHEDULE SUBSIDIARIES

            	
              44

            
	 	 	 
	
              THIRD
                SCHEDULE DIRECTORS

            	
              45

            
	 	 	 
	
              FOURTH
                SCHEDULE WARRANTIES

            	
              46

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    THIS
      AGREEMENT
      is dated
      3rd
      April,
      2006 and made between

    

    

    
      	 	
              (1)

            	
              Those
                listed as Vendors in Column 1 of the Table in the First
                Schedule
                (the “Vendors”) and 

            

    

    

    
      	 	
              (2)

            	
              Measurement
                Specialties, Inc., a corporation organised under the laws of the
                State of
                New Jersey, with its principal place of business in Hampton,
                Virginia (the
                “Purchaser”).

            

    

    

    RECITALS:

     

    
      	
              A.

            	
              BetaTHERM
                Group Ltd. (the “Company”) is a company whose particulars are set out in
                the First
                Schedule.

            

    

    

    
      	
              B.

            	
              The
                Vendors are the legal and beneficial owners of the Company’s entire issued
                and outstanding share capital (the “Shares”). At the date hereof the
                Vendors are the legal and beneficial owners of the numbers and classes
                of
                shares in the capital of the Company set out against each Vendors’ name in
                Column 3 of the Table in the First
                Schedule.

            

    

    

    
      	
              C.

            	
              The
                Vendors have agreed to sell and the Purchaser has agreed to purchase
                the
                Shares on the terms and conditions in this Agreement.
                

            

    

    

    IT
      IS HEREBY AGREED
      as
      follows:

     

    
      	
              1.

            	
              DEFINITIONS
                AND INTERPRETATION

            

    

     

    
      	
              1.1

            	
              In
                this Agreement, unless the context otherwise
                requires:

            

    

    

    “Acquired
      Companies”
means
      the Company and its Subsidiaries, collectively; 

    

    “Acquired
      Companies Debt”
      means,
      in relation to the Acquired Companies all (i) bank borrowings of the Acquired
      Companies, whether in the form of term loans, overdrafts or debtor financing
      through the discounting of invoices or bills of exchange (ii) amounts payable
      under the Former Management Vendor Loan Notes (including interest due and
      payable thereon) and (iii) all other indebtedness for money borrowed (including,
      in each case, interest due and payable thereon) but shall not include (a) trade
      payables, (b) inter-company debt between any of the Acquired Companies, and
      (c)
      amounts owing under operating leases or occupational leases provided, however,
      Acquired Companies Debt shall not include amounts payable under the Vendors
      Loan
      Notes;

    

    “Affiliate”
      means with respect to any Person, (i) each Person that controls, is controlled
      by or is under common control with any such Person or any Affiliate of such
      Person, (ii) each of such Person’s officers, directors, joint venturers, and
      members and (iii) such Person’s spouse, children, siblings and parents. For
      purposes of this definition, “control” of a Person shall mean the possession,
      directly or indirectly, of the power to direct or cause the direction of its
      management of policies, whether through the ownership of voting interests,
      by
      contract or otherwise;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    “Ancillary
      Agreements”
      shall have the meaning set forth in Clause 4.2(a) of the Fourth
      Schedule;

    

    “Applicable
      Contract”
means
      any Contract (a) under which any Acquired Companies have or may acquire any
      rights, (b) under which any Acquired Companies have or may become subject to
      any
      obligation or liability, or (c) by which any Acquired Companies or any of the
      assets owned or used by them are or may become bound;

    

    “Auditors”
means
      the Auditors for the time being of the Company;

    

    “Balance
      Sheet”
shall
      have the meaning provided in the Clause 4.4 of the Fourth Schedule;

    

    “Best
      Efforts”
means
      the efforts that a prudent Person desirous of achieving a result would use
      in
      similar circumstances to ensure that such result is achieved as expeditiously
      as
      possible; provided, however, that an obligation to use Best Efforts under this
      Agreement does not require the Person subject to that obligation to take actions
      that would result in a materially adverse change in the benefits to such Person
      of this Agreement and the Contemplated Transactions or require that person
      to
      incur a liability or to pay money or to incur costs;

    

    “Breach”
in
      relation to a Warranty or a Purchaser’s Warranty, means any instance of the
      Warranty or Purchaser’s Warranty (as the case may be) being (i) untrue or (ii)
      to the Knowledge of Vendors or Purchaser (as the case may be), the existence
      of
      facts that would make the Warranty or Purchaser’s Warranty misleading in any
      material respect;

    

    “Business”
means
      the Acquired Companies’ business of manufacturing and distributing thermistors
      and temperature sensors;

    

    “Business
      Day”
means
      any day on which banks are generally open for business in Dublin;

    

    “Claim”
means
      (i) a claim pursuant to Clause 4, for which a party is entitled or may become
      entitled, to indemnification, under this Agreement; (ii) a claim under the
      Tax
      Deed; (iii) a claim for payment pursuant to clause 7.3; (iv) a claim for a
      breach of this Agreement (other than any breach of the noncompetition of
      Management Vendors agreement contained in Clause 3.7); and (v) any other claim,
      whether under the express terms of this Agreement or the Tax Deed or at common
      law arising out of the transactions contemplated by this Agreement;

    

    “1963
      Act”
means
      the Companies Act, 1963, as amended;

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    “Company”
means
      the company referred to in recital A;

    

    “Completion”
means
      completion of the sale and purchase of the Shares under Clause 3;

    

    “Completion
      Date”
shall
      have the meaning provided in Clause 3.1.1;

    

    “Completion
      Date Purchase Price Payment”
      shall
      have the meaning provided in Clause 2.2;

    

    “Completion
      Working Capital”
shall
      have the meaning provided in Clause 7.2; 

    

    “Consideration
      Shares”
means
      the Shares in the capital of the Purchaser to be issued by the Purchaser to
      the
      Management Vendors in satisfaction of US $1,000,000 of the Purchase Price as
      detailed in Clause 2.2 hereof;

    

    “Consent”
means
      any approval, consent, ratification, waiver, or other authorisation (including
      any Governmental Authorisation);

    

    “Contract”
means
      any agreement, contract, obligation, promise, or undertaking (whether written
      or
      oral and whether express or implied) that is legally binding and in respect
      of
      which an Acquired Company has outstanding rights or obligations;

    

    “Contemplated
      Transactions”
means
      all of the transactions contemplated by this Agreement, including;

    

    
      	 	
              (a)

            	
              the
                sale of the Shares by Vendors to
                Purchaser;

            

    

    

    
      	 	
              (b)

            	
              the
                execution, delivery, and performance of the Vendor Releases and Employment
                Agreements;

            

    

    

    
      	 	
              (c)

            	
              the
                performance by Purchaser and Vendors of their respective covenants
                and
                obligations under this Agreement;
                and

            

    

    

    
      	 	
              (d)

            	
              Purchaser’s
                acquisition of the Shares;

            

    

    

    “Deed
      of Novation”
means
      the Deed of Novation being entered into simultaneously with the Closing hereof
      by the Persons listed on Schedule
      A
      of the
      Deed of Novation in order to novate all Vendor Loan Notes;

    

    “Directors”
means
      those listed as such in the Third
      Schedule;

    

    “Deferred
      Payment Date”
means
      the date that
      is
      eighteen months following the Completion Date; 

    

    “Deferred
      Purchase Price”
shall
      have the meaning provided in Clause 2.23;

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    “Disclosure
      Letter”
means
      the letter of the same date as this Agreement from the Vendors’ Solicitors to
      the Purchaser’s Solicitors disclosing exceptions to the Warranties;

    

    “Effective
      Time”
shall
      have the meaning provided in Clause 3.1.1; 

    

    “Employment
      Agreements”
means
      the employment agreements for the continued employment of key employees of
      the
      Company following the Completion;

    

    “Encumbrance
      “
means
      any charge, claim, community property interest, equitable interest, lien,
      option, pledge, security interest, right of first refusal, or restriction of
      any
      kind, including any restriction on use, voting, transfer, receipt of income,
      or
      exercise of any other attribute of ownership;

    

    “Environment”
      means soil, land surface or subsurface strata, surface waters, groundwaters,
      drinking water supply, ambient air (including indoor air), plant and animal
      life
      and any other environmental medium or natural resource;

    

    “Environmental
      Law”
      means any Legal Requirement that requires or relates to the protection of
      natural resources, the Environment, the health and safety of the public, the
      regulation of Hazardous Substances, or pollution of any type whatsoever, and
      the
      regulations and guidelines promulgated under any such modifications, and any
      other Legal Requirement currently in existence, which govern:

    

    
      	 	
              (i)

            	
              the
                existence, cleanup and/or remedy of contamination on property;
                

            

    

    

    
      	 	
              (ii)

            	
              the
                emission or discharge of Hazardous Substances into the Environment;
                

            

    

    

    
      	 	
              (iii)

            	
              the
                Release, use, generation, transport, treatment, storage, disposal,
                removal
                or recovery or management of Hazardous Substances, including building
                materials; or

            

    

    

    
      	 	
              (iv)

            	
              the
                level of Hazardous Substances in any
                workplace;

            

    

    

    “Escrow
      Account”
means
      the account established pursuant to the Escrow Agreement. 

    

    “Escrow
      Agreement”
means
      an Escrow Agreement in the form of Exhibit
      A
      executed
      by the Vendors, the Purchaser and the Escrow Agent (as defined in the Escrow
      Agreement); 

    

    “Estimated
      Claim Amount”
shall
      have the meaning provided in Clause 6.25.

    

    “Estimated
      Working Capital”
shall
      have the meaning provided in Clause 7.1;

    

    “Estimated
      Working Capital Statement”
shall
      have the meaning provided in Clause 7.1;

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    “Euro”
shall
      mean the currency unit of the participating member states of the European Union
      as defined in Recital (2) of Council Regulation 974/98/EC on the introduction
      of
      the Euro;

    

    “Financial
      Statements”
shall
      have the meaning provided in Clause 4.4 of the Fourth Schedule;

    

    “Former
      Management Vendor Loan Notes”
means
      the Loan Notes held by Paul O’Shaughnessy and Jim Sheehan;

    

    “GAAP”
means
      accounting principles, standards and practices generally accepted in
      Ireland;

    

    “Governmental
      Authorisation“
means
      any approval, consent, license, permit, waiver, or other authorisation issued,
      granted, given, or other-wise made available by or under the authority of any
      Governmental Body or pursuant to any Legal Requirement;

    

    “Governmental
      Body”
means
      any:

    

    
      	 	
              (a)

            	
              nation,
                state, county, city, town, village, district, or other jurisdiction
                of any
                nature;

            

    

    

    
      	 	
              (b)

            	
              federal,
                state, local, municipal, foreign, or other
                govern-ment;

            

    

    

    
      	 	
              (c)

            	
              governmental
                authority of any nature (including any governmental agency, branch,
                department, official, or entity and any court or other tribunal);
                or

            

    

    

    
      	 	
              (d)

            	
              body
                exercising, or entitled to exercise, any administra-tive, executive,
                judicial, legislative, police, regulatory, or Taxation Authority
                or power
                of any nature;

            

    

    

    “Hazardous
      Substances”
      means: (a) any toxic, hazardous or otherwise dangerous material, substance,
      waste or pollutant, including without limitation petroleum products, flammable
      substances, explosives, radioactive materials, asbestos, asbestos coating and
      asbestos containing materials, polychlorinated biphenyls, toxic wastes or
      substances or any other wastes, materials or pollutants defined or regulated
      by
      Environmental Laws; and (b) any other chemical, material or substances,
      exposure to which is prohibited, limited or regulated by any Governmental
      Body;

    

    “Intellectual
      Property Assets”
shall
      have the meaning provided in Clause 4.22 of the Fourth Schedule;

    

    “Interim
      Balance Sheet”
shall
      have the meaning provided in Clause 4.4 of the Fourth Schedule;

    

    “Knowledge”
means
      an individual will be deemed to have “Knowledge” of a particular fact or other
      matter if:

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	 	
              (a)

            	
              such
                individual is actually aware of such fact or other matter;
                or

            

    

    

    
      	 	
              (b)

            	
              a
                prudent individual could be expected to discover or otherwise become
                aware
                of such fact or other matter in the course of conducting a reasonably
                comprehensive investigation of each Management Vendor and each director
                of
                each Acquired Company concerning the existence of such fact or other
                matter;

            

    

    

    A
      Person (other than an individual) will be deemed to have "Knowledge" of a
      particular fact or other matter if any individual who is (i) a Management
      Vendor, or (ii) serving as a director or investment director of such Person
      has,
      or at any time had, Knowledge of such fact or other matter;

    

    “Legal
      Requirement”
means
      any federal, state, local, municipal, foreign, international, multinational,
      or
      other administrative order, constitution, law, ordinance, principle of common
      law, regulation, statute, or treaty;

    

    “Loan
      Notes”
means
      the Vendor Loan Notes and the Former Management Vendor Loan Notes;

    

    “Management
      Vendors”
means
      any entity who is a member of the Company at Completion and that is a member
      of
      the management of the Company as detailed in Column 1 of the Table in the
First
      Schedule
      hereto;

    

    “Market
      Value”
means
      $24.26 per share of Purchaser common stock;

    

    “Order”
means
      any award, decision, injunction, judgement, order, ruling, subpoena, or verdict
      entered, issued, made, or rendered by any court, administrative agency, or
      other
      Governmental Body or by any arbitrator;

    

    “Ordinary
      Course of Business”
means
      an action taken by a Person will be deemed to have been taken in the “Ordinary
      Course of Business” only if:

    

    
      	 	
              (a)

            	
              such
                action is consistent with the past practices of such Person and is
                taken
                in the ordinary course of the normal day-to-day operations of such
                Person;
                and

            

    

    

    
      	 	
              (b)

            	
              such
                action is similar in nature and magnitude to actions customarily
                taken by
                such Person;

            

    

    

    “Organisational
      Documents”
means:
      (a) the articles or certificate of incorporation and the bylaws of a
      corporation; (b) the partnership agreement and any statement of partnership
      of a
      general partnership; (c) the limited partnership agreement and the certificate
      of limited partnership of a limited partnership; (d) any charter or similar
      document adopted or filed in connection with the creation, formation, or
      organisation of a Person; and (e) any amendment to any of the
      foregoing;

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    “Person”
means
      any individual, corporation (including any non-profit corporation), general
      or
      limited partnership, limited liability company, joint venture, estate, trust,
      association, organisation, labor union, or other entity or Governmental
      Body;

    

    “Proceeding”
means
      any action, arbitration, audit, hearing, investigation, litigation, or suit
      (whether civil, criminal, administrative, investigative, or informal) commenced,
      brought, conducted, or heard by or before, or otherwise involving, any
      Governmental Body or arbitrator;

    

    “Purchase
      Price”
shall
      have the meaning provided in Clause 2.2;

    

    “Purchaser”
means
      Measurement Specialties, Inc.;

    

    “Purchaser
      Pre-Estimate”
shall
      have the meaning provided in Clause 6.23. 

    

    “Purchaser’s
      Solicitors”
means
      Messrs. McCarter
      & English, LLP; 

    

    “Purchaser’s
      Warranties”or
      a
“Purchaser’s
      Warranty”
      means
      the warranties and representations relating to the Purchaser at Completion
      set
      out in Clauses 4.2 , 4.3 and 4.4 of this Agreement;

    

    “Real
      Property”
shall
      have the meaning provided in Clause 4.19 of the Fourth Schedule; 

    

    “Reconciled”
means,
      in respect of any Claim, a Claim which has been “settled” or “resolved” (as such
      terms are defined in Clause 6.22); 

    

    “Reconciled
      Amount”
means
      the amount (which may be zero) agreed in respect of any Claim which is “settled”
(as defined in Clause 6.22) or awarded to Purchaser by the relevant court of
      competent jurisdiction or tribunal of law in respect of a Claim which is
“resolved” (as defined in Clause 6.22); 

    

    “Related
      Person”
means
      with respect to a particular individual:

    

    
      	 	
              (a)

            	
              each
                other member of such individual’s
                Family;

            

    

    

    
      	 	
              (b)

            	
              any
                Person that is directly or indirectly controlled by such individual
                or one
                or more members of such individual’s
                Family;

            

    

    

    
      	 	
              (c)

            	
              any
                Person in which such individual or members of such individual’s Family
                hold (individually or in the aggregate) a Material Interest;
                and

            

    

    

    
      	 	
              (d)

            	
              any
                Person with respect to which such individual or one or more members
                of
                such individual’s Family serves as a director, officer, partner, executor,
                or trustee (or in a similar
                capacity);

            

    

    

    With
      respect to a specified Person other than an individual:

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      	 	
              (a)

            	
              any
                Person that directly or indirectly controls, is directly or indirectly
                controlled by, or is directly or indirectly under com-mon control
                with
                such specified Person;

            

    

    

    
      	 	
              (b)

            	
              any
                Person that holds a Material Interest in such specified Person;
                

            

    

    

    
      	 	
              (c)

            	
              each
                Person that serves as a director, officer, partner, executor, or
                trustee
                of such specified Person (or in a similar
                capacity);

            

    

    

    
      	 	
              (d)

            	
              any
                Person in which such specified Person holds a Material
                Interest;

            

    

    

    
      	 	
              (e)

            	
              any
                Person with respect to which such specified Person serves as a general
                partner or a trustee (or in a similar capacity);
                and

            

    

    

    
      	 	
              (f)

            	
              any
                Related Person of any individual described in clause (b) or
                (c);

            

    

    

    For
      purposes of this definition, (a) the “Family” of an individual includes (i) the
      individual, (ii) the individual’s spouse and former spouses, (iii) any other
      natural person who is related to the individual or the individual’s spouse
      within the second degree, and (iv) any other natural person who resides with
      such individual, and (b) “Material Interest” means direct or indirect beneficial
      ownership (as defined in Rule 13d-3 under the Securities Exchange Act of 1934
      as
      amended (the “Exchange Act”)) of voting securities or other voting interests
      representing at least 50% of the voting power of a Person or equity securities
      or other equity interests representing at least 50% of the equity securities
      or
      equity interests in a Person then outstanding;

    

    “Release”
      means any spilling, leaking, pumping, pouring, emptying, emitting, discharging,
      depositing, escaping, leaching, dumping or other releasing into the Environment,
      whether intentional or unintentional; 

    

    “Representative”
means
      with respect to a particular Person, any director, officer, employee, agent,
      consultant, advisor, or other representative of such Person, including legal
      counsel, accountants, and financial advisors;

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended;

    

    “Service
      Provider”
shall
      have the meaning provided in Clause 4.13 of the Fourth Schedule;

    

    “Shares”
means
      the entire issued and outstanding share capital of the Company;

    

    “Subsidiaries”
means
      the companies listed in the Second
      Schedule;
      

    

    “Tax”
      and “Taxation”
means
      all forms of taxation whether direct or indirect, duties, imposts and levies
      and
      includes (without limiting the generality of the foregoing) corporation tax,
      corporation profits tax, advance corporation tax (“ACT”), capital gains tax,
      development land tax, rates, water rates, capital transfer tax, inheritance
      tax,
      gift tax, capital acquisitions tax, residential property tax, value added tax,
      income tax, dividend withholding tax, withholding tax (whether in respect of
      any
      payments, interest or otherwise), deposit interest retention tax, pay related
      social insurance, national insurance contributions, amounts due under the PAYE
      or PRSI system, income or other levies, customs and excise duties any other
      import or export duties, stamp duty, stamp duty reserve tax, companies capital
      duty, tax on turnover or profits, sales tax, and any other amounts corresponding
      thereto and all other taxes, rates, levies, fines, duties or other fiscal
      impositions of any kind whatsoever, whether imposed by any Tax Authority or
      otherwise, or other sums paid in respect of Tax or Taxation (including in
      particular but without derogating from the generality of the foregoing any
      interest, fine, charge, surcharge or penalty) relating to any liability referred
      to in this definition (save insofar as attributable to the delay or default
      after Completion of the Purchaser, any member of the Purchasers group of
      companies or the Company) whether arising under the laws of Ireland or those
      of
      any other jurisdiction and whether incurred as principal, agent, trustee,
      indemnitor or otherwise, and regardless of whether such taxes, penalties,
      charges, levies, fines, surcharges and interest are directly or primarily
      chargeable against or attributable to the Company or any other person, firm
      or
      company and whether or not the Purchaser or the Company is or may be entitled
      to
      claim reimbursement thereof from any other person or persons;

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    “Tax
      Authority”
shall
      mean the Revenue Commissioners in Ireland, and any other

    local,
      municipal, governmental, state, federal or other fiscal authority or
      body

    anywhere
      in the world competent to impose any Tax;

    

    “Tax
      Deed”
shall
      mean the tax deed of indemnity in the agreed form between the

    Vendors
      and the Purchaser;

    

    “Tax
      Return”
means
      any return (including any information return), report, statement, schedule,
      notice, form, or other document or information filed
      with or submitted to, or required to be filed with or submitted to, any Tax
      Authority in connection with the determination, assessment, collection, or
      payment of any Tax or in connection with the administration, implementation,
      or
      enforcement of or compliance with any Legal Requirement relating to any
      Tax;

    

    “Threatened”
means
      a
      claim, Proceeding, dispute, action, or other matter will be deemed to have
      been
“Threatened” if any demand or statement has been made (orally or in writing) or
      any notice has been given (orally or in writing), or if any other event has
      occurred or any other circumstances exist, that would lead a prudent Person
      to
      conclude that such a claim, Proceeding, dispute, action, or other matter is
      likely to be asserted, commenced, taken, or otherwise pursued in the
      future;

    

    “Vendors”
means
      those
      parties listed as Vendors in Column 1 of the Table in the First
      Schedule;

    

    “Vendor
      Loan Notes”
means
      the Loan Notes listed on Schedule
      A
      of the
      Deed of Novation identified as being held by a Management Vendor;

    

    “Vendor
      Release”
means
      a
      release in the form of Exhibit
      B
      executed
      by each of the Vendors;

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    “Vendors’
      Solicitors”
means
      Messrs. Matheson Ormsby and Prentice;

    

    “Vendors’
      Transaction Costs”
means
      all legal, accounting and investment banking fees and other fees to employees,
      consultants and advisors incurred by any of the Vendors or the Acquired
      Companies in connection with or as a result of the negotiation, preparation,
      delivery and execution of, and the performance by any of the Vendors and the
      Acquired Companies of its obligations under, this Agreement (and pursuant to
      any
      prior efforts to sell the capital stock of the Acquired Companies), including
      without limitation, (i) all costs and expenses arising out of, related to or
      incurred in connection with William Blair & Company; (ii) any transfer taxes
      in respect of or other costs imposed by any Legal Requirements on any of the
      Vendors or the Acquired Companies arising, directly or indirectly, out of the
      transfer of the Shares; and (iii) the payment to any employees, directors or
      consultants of change of control and similar cash or other bonus payments to
      which they are entitled as a result of the transaction contemplated by this
      Agreement;

    

    “Warranties”
      or a “Warranty”
      means
      the warranties and representations relating to the Vendors and the Acquired
      Companies at Completion set out in the Fourth
      Schedule;

     

    
      	
              1.2

            	
              The
                Schedules referred to in this Agreement form an integral part of
                this
                Agreement, are incorporated herein by reference and reference to
                this
                Agreement includes reference to
                them.

            

    

     

    
      	
              1.3

            	
              Headings
                are inserted for convenience only and do not affect the construction
                of
                this Agreement.

            

    

     

    
      	
              1.4

            	
              All
                references in this Agreement to costs, charges or expenses include
                any
                value added tax or similar tax charged or chargeable in respect of
                this
                Agreement.

            

    

     

    
      	
              1.5

            	
              Unless
                the context otherwise requires:

            

    

    

    
      	
            	1.5.1	
              words
                importing the singular include the plural and vice versa, words importing
                the masculine include the feminine, and words importing persons include
                corporations;

            

    

    

    
      	
            	1.5.2	
              where
                something is defined in the singular, the plural of the defined term
                will
                be taken to mean two or more of those things which fall within the
                definition; and where something is defined in the plural or collectively,
                the singular of the defined term will be taken to mean any one of
                those
                things which fall within the
                definition;

            

    

    

    
      	
            	1.5.3	
              reference
                to writing or similar expressions includes transmission by telecopier
                or
                electronic means;

            

    

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
            	1.5.4	
              references
                to Acts, statutory instruments and other legislation are to legislation
                operative in Ireland and to such legislation amended, extended or
                re-enacted (whether before or after the date of this Agreement),
                except to
                the extent that such amendment, extension or re-enactment creates
                or
                increases the liability of any Vendor or Acquired Company, and any
                subordinate legislation made under that legislation, and includes
                equivalent laws in any other jurisdiction;
                and

            

    

    

    
      	
            	1.5.5	
              reference
                to any document includes that document as amended or supplemented,
                whether
                before or after the date of this
                Agreement.

            

    

    

    
      	
            	1.5.6	
              The
                expression “agreed form” means in relation to any document, such document
                in the terms agreed between the parties thereto and hereto and for
                the
                purposes of identification signed by or on behalf of each of the
                parties
                hereto.

            

    

     

    
      	
              2.

            	
              SALE
                OF SHARES

            

    

    

    
      	
              2.1

            	
              Each
                Vendor shall sell as legal and beneficial owner and the Purchaser
                shall
                purchase, free from all liens, charges and encumbrances, the number
                of
                each class of Shares listed opposite that Vendors name in Column
                3 of the
                table in the First
                Schedule.
                Each holder of Vendor Loan Notes shall novate such Loan Notes pursuant
                to
                the Deed of Novation.

            

    

     

    
      	
              2.2

            	
              The
                Shares will be sold and the Vendor Loan Notes novated at an aggregate
                price of US$36,741,065 (the
                “Purchase Price”), subject to adjustment as provided below in this Clause
                2.2. The Purchase Price shall be payable by Purchaser as follows:
                

            

    

    

    
      	
            	2.2.1	
              $33,741,065
                shall be paid to the Vendors. The foregoing payment shall be made
                on the
                Completion Date by wire transfer of immediately available funds to
                the
                account designated by the Vendors (the “Completion
                Date Purchase Price Payment”);

            

    

    

    
      	
            	2.2.2	
              $1,000,000,
                in the aggregate, shall be paid to the Management Vendors in the
                form of
                the Consideration Shares. The Consideration Shares shall be issued
                promptly following the Completion Date (but in no event shall the
                Consideration Shares be issued more than fourteen (14) days after
                the
                Completion Date), and will be restricted shares as a result of their
                issuance in accordance with Regulation S or Regulation D of the Securities
                Act;

            

    

    

    
      	
            	2.2.3	
              On
                the Deferred Payment Date, the Purchaser shall pay one million, six
                hundred forty eight thousand, five hundred thirty two Euro( € 1,648,532
                (the “Deferred Purchase Price”); less
                (i) any Reconciled Amount (ii) the amount of any Purchaser Pre-Estimate
                in
                respect of any Claim which has not yet been Reconciled or in respect
                of
                which an Estimated Claim Amount has not yet been determined or agreed
                pursuant to Clause 6.25 and (iii) the amount of any Estimated Claim
                Amount
                in respect of any Claim which has not been Reconciled on the Deferred
                Payment Date; 

            

    

     

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	
            	2.2.4	
              On
                the Deferred Payment Date, the Purchaser shall pay the amounts specified
                in subclauses (ii) and (iii) of Clause 2.2.3 into the Escrow Account
                to be
                held in accordance with the provisions of the Escrow
                Agreement;

            

    

    

    
      	
            	2.2.5	
              All
                Purchase Price payments required under this Clause 2.2 shall be made
                by
                wire transfer of immediately available funds on the applicable payment
                date to the Vendor’s Solicitors or the Escrow Account, as the case may be,
                and the receipt of which by the Vendor’s Solicitors or the bank in which
                the Escrow Account resides, as the case may be, shall be in complete
                discharge of the Purchaser’s obligation with respect thereto. Reduction of
                the Deferred Purchase Price payable as provided in this Clause and
                in
                Clause 6.1 and payment of amounts held under the Escrow Agreement
                in
                accordance with the terms thereof, shall be Purchasers sole recourse
                for
                Claims, and no other set-off of the Deferred Purchase Price shall
                be made
                by Purchaser. 

            

    

     

    
      	
              3.

            	
              COMPLETION
                AND CONDITIONS

            

    

     

    
      	
              3.1

            	
              Completion:

            

    

    

    
      	
            	3.1.1	
              Completion
                shall take place on 3rd
                April, 2006 (the “Completion Date”), at the offices of the Vendors’
                Solicitors. For
                financial, accounting and tax purposes, the Closing shall be deemed
                to
                have occurred as of 12:01 a.m. on April 1, 2006
                (“Effective Time”);

            

    

    

    
      	
            	3.1.2	
              The
                Vendors and the Purchaser shall use their Best Efforts to ensure
                that the
                conditions in Clause 3.3 are fulfilled on the Completion Date. All
                deliverables specified in Clause 3.3 and all conditions specified
                in
                Clause 3.4 shall be deemed waived when the Purchaser confirms in
                writing
                that Completion has taken place. 

            

    

     

    
      	
              3.2

            	
              Non-fulfilment
                of conditions: 

            

    

    

    If
      the
      conditions in Clause 3.3 are not fulfilled by April 15, 2006, either the Vendors
      or the Purchaser may (if not in continuing breach of their own obligations
      relating to that clause), at any time prior to the fulfilment of the conditions,
      rescind this Agreement by notice to the other, and this will not prejudice
      the
      other rights and remedies of the rescinding party under this
      Agreement.

    

    
      	
              3.3

            	
              Conditions: 

            

    

    

    
      	
            	3.3.1	
              Material
                Adverse Change

            

    

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
 

    Since
      1
      January, 2006, there has not been any material adverse change in the business,
      operations, properties, prospects, assets, or condition of any Acquired
      Companies and no event has occurred or circumstances exist that may result
      in
      such a material adverse change.

    

    
      	
            	3.3.2	
              No
                Claims Regarding Share Ownership or Sale
                Proceeds

            

    

    

    There
      must not have been made or, to the Vendor’s knowledge, Threatened by any person
      any claim asserting that such person:

    

    
      	 	
              3.3.2.1

            	
              is
                the holder or the beneficial owner of, or has the right to acquire
                or to
                obtain beneficial ownership of, any shares of, or any of the voting,
                equity, or ownership interest in, any of the Acquired Companies;
                or

            

    

    

    
      	 	
              3.3.2.2

            	
              is
                entitled to all or any portion of the Purchase Price payable for
                the
                Shares.

            

    

    

    
      	
            	3.3.3	
              Delivery
                of Documentation

            

    

    

    
      	 	
              3.3.3.1

            	
              Execution
                and delivery of the Vendor Releases by each of the Vendors;
                

            

    

    

    
      	 	
              3.3.3.2

            	
              Execution
                and delivery of the Escrow Agreement by all parties thereto;
                and

            

    

    

    
      	 	
              3.3.3.3

            	
              Execution
                and delivery of the Employment Agreements by each of the parties
                required
                to execute a Employment Agreement.

            

    

    

    
      	
              3.4

            	
              Vendors’
                obligations at Completion: 

            

    

    

    Upon
      Completion the Vendors shall: 

    

    
      	
            	3.4.1	
              Deliver
                or procure the delivery of to the
                Purchaser:

            

    

    

    
      	
            	(1)	
              transfers
                of the Shares duly executed by the registered holders in favour of
                the
                Purchaser or as he may direct together with the related share certificates
                or, in the case of any lost share certificate, an indemnity in appropriate
                terms; and

            

    

    

    
      	
            	(2)	
              any
                waivers or consents necessary to enable the Purchaser or his nominees
                to
                be registered as holders of the
                Shares;

            

    

    

    
      	
            	3.4.2	
              cause
                any persons nominated by the Purchaser to be validly appointed as
                additional directors of the Acquired Companies, and then cause the
                Directors to retire from office; 

            

    

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
            	3.4.3	
              cause
                the Company to change its registered office to such office as may
                be
                designated by the Purchaser at or prior to
                Completion.

            

    

    

    
      	
            	3.4.4	
              deliver
                to the Purchaser for himself and as agent for the
                Company:

            

    

    

    
      	
            	(1)	
              insofar
                as they are not in the custody of the Company and the Subsidiaries
                and
                unless held as security by a bank, the title deeds of the
                Properties;

            

    

    

    
      	
            	(2)	
              all
                the Company’s and the Subsidiary’s statutory and other books, certificates
                of incorporation and common seals;
                and

            

    

    

    
      	
            	(3)	
              insofar
                as they are not in the custody of the Company and the Subsidiaries,
                all
                the Company’s and the Subsidiary’s financial and accounting books and
                records (including all bank mandates, credit cards and cheque
                books).

            

    

    

    
      	
            	3.4.5	
              Exercise
                all voting rights and other powers of control which they have in
                relation
                to the Company to make sure that the required shareholders and directors
                resolutions are passed.

            

    

    

    
      	
            	3.4.6	
              Deliver
                to the Purchaser:

            

    

    

    
      	 	
              3.4.7.1

            	
              This
                Agreement duly executed by each of the
                Vendors.

            

    

    

    
      	
            	3.4.7.2	
              The
                Disclosure Letter duly executed by each of the
                Vendors.

            

    

    

    
      	
            	3.4.7.3	
              The
                Tax Deed duly executed by each of the
                Vendors.

            

    

    

    
      	
            	3.4.7.4	
              A
                Vendor Release duly executed by each
                Vendor.

            

    

    

    
      	
            	3.4.7.5	
              An
                Employment Agreement duly executed by each key employee of the Company
                required to execute an Employment Agreement as detailed in the
                First
                Schedule.

            

    

    

    
      	
            	3.4.7.6	
              Evidence
                that all registered charges created by the Company have been discharged
                or
                letters to the Purchaser from all relevant bankers or holders of
                security
                confirming that the fixed and floating charges created in their favour
                by
                the Company have not crystallised and will not as a result of Completion
                crystallise. 

            

    

    

    
      	
            	3.4.7.7	
              The
                Deed of Novation executed by the holders of the Vendors Loan Notes.
                

            

    

     

    
      	
              3.5

            	
              Purchaser’s
                obligations at Completion:

            

    

    

    Upon
      Completion Purchaser shall:

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    
      	
            	3.5.1	
              pay
                the Purchase Price to the Vendors as follows:

            

    

    

    
      	
            	(1)	
              deliver
                cash in the amount of the Completion Date Purchase Price Payment
                to
                Vendors’ Solicitors by wire transfer or in such other manner as may be
                agreed in writing between the Vendors’ Solicitors and the Purchaser’s
                Solicitors, for further distribution to the Vendors in amounts agreed
                to
                among the Vendors;

            

    

    

    
      	
            	(2)	
              deliver
                the Consideration Shares to the Management Vendors. Such Consideration
                Shares will be distributed promptly following Completion to each
                of the
                Management Vendors pursuant to Clause 2.2.2. The Consideration Shares
                shall be issued at the Market
                Value;

            

    

    

    
      	
            	3.5.2	
              All
                of the Consideration Shares issued to the Management Vendors pursuant
                to
                this Agreement cannot be sold until after the first anniversary of
                the
                Completion Date and the certificate in respect of the Consideration
                Shares
                will bear a restrictive legend in substantially the following
                form: 

            

    

    

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THE SHARES HAVE BEEN ACQUIRED
      WITHOUT A VIEW TO DISTRIBUTION AND MAY ONLY BE SOLD OR TRANSFERRED IN ACCORDANCE
      WITH THE PROVISIONS OF REGULATION S UNDER THE ACT (RULES 901 THROUGH 905 UNDER
      THE ACT AND THE PRELIMINARY NOTES THERETO), PURSUANT TO REGISTRATION UNDER
      THE
      ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION. HEDGING
      TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT
      BE
      CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

    

    The
      Purchaser shall issue new certificates in respect of the Consideration Shares
      to
      any Management Vendor, upon request, without such legend if such Consideration
      Shares are registered under the Securities Act or may be sold under Rule 144
      under the Securities Act (or any replacement rule). In any such case, the
      Purchaser shall promptly after receipt of such a request (and in any event
      no
      later than 10 days after such receipt) both deliver written instructions to
      its
      transfer agent and cause its securities counsel to publish opinion(s) to the
      extent necessary to effect the removal of the restrictive legend. In addition,
      the Purchaser recognizes that, beginning one year following the Completion
      Date,
      a Management Vendor may transfer or sell some or all of the Consideration Shares
      held by the Management Vendor in other transactions exempt from the registration
      requirements of the Securities Act. In such a case, if requested by a Management
      Vendor, the Purchaser shall promptly deliver written instructions to its
      transfer agent and cause its securities counsel to publish opinion(s) to the
      extent necessary to effect the exempt sale or transfer of the Consideration
      Shares.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    
      	
            	3.5.3	
              Each
                Management Vendor (a) understands that the shares of Purchaser’s common
                stock constituting a portion of the Purchase Price being delivered
                to such
                Management Vendor have not been, and will not be, registered under
                the
                Securities Act or under any state securities laws, and are being
                offered
                and sold in reliance upon Regulation S under the Securities Act,
                Regulation D under the Securities Act or another applicable exemption
                from
                the registration requirements of the Securities Act, (b) agrees to
                resell
                or transfer such shares only in accordance with the provisions of
                Regulation S (Rules 901 through 905 under the Securities Act, ant
                the
                Preliminary Notes to such Rules), pursuant to registration under
                the
                Securities Act or pursuant to an available exemption from such
                registration, (c) agrees not to engage in hedging transactions with
                regard
                to such shares unless in compliance with the Securities Act, and
                (d) each
                (other than Herbert Holmstedt) certifies that he, she or it is not
                a US
                person, as defined in Rule 902(k) under the Securities Act, and is
                not
                acquiring shares for the account or benefit of any US person, as
                so
                defined.

            

    

    

    
      	
            	3.5.4	
              The
                Purchaser shall not register any transfer of the Consideration Shares
                by
                any of the Management Vendors unless such transfer is made in accordance
                with Regulation S, pursuant to registration under the Securities
                Act, or
                pursuant to an available exemption from
                registration.

            

    

    

    
      	
              3.6

            	
              Covenants
                of Purchaser:

            

    

    

    
      	
            	3.6.1	
              Approvals
                by Governmental Bodies.
                As promptly as practicable after the date of this Agreement, Purchaser
                will, and will cause each of its Related Persons to, make all filings
                required by Legal Requirements to be made by them to consummate the
                Contemplated Transactions. Between the date of this Agreement and
                the
                Completion Date, Purchaser will cooperate with Vendors with respect
                to all
                filings that Vendors are required by Legal Requirements to make in
                connection with the Contemplated Transactions, and (ii) cooperate
                with
                Vendors in obtaining all consents identified in Part 4.2 of the Disclosure
                Letter; provided that this Agreement will not require Purchaser to
                dispose
                of or make any change in any portion of its business or to incur
                any other
                burden to obtain a Governmental
                Authorisation.

            

    

    

    
      	
              3.7

            	
              Noncompetition
                of Management Vendors:

            

    

    

    
      	
            	3.7.1	
              As
                an inducement for the Purchaser to enter into this Agreement and
                as
                additional consideration for the consideration paid to the Vendors,
                each
                Management Vendor agrees that for a period of three (3) years after
                the
                Closing: 

            

    

     

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    (a) Each
      Management Vendor shall not, and shall not permit its Affiliates to, directly
      or
      indirectly, engage or invest in, own, manage, operate, finance, control, or
      participate in the ownership, management, operation, financing, or control
      of,
      be employed by, associated with, or in any manner connected with, extend credit,
      or render services or advice to, any business whose products or activities
      compete in whole or in part with the products or activities of the Business,
      anywhere worldwide, provided,
      that
      each Management Vendor may purchase or otherwise acquire up to (but not more
      than) one percent of any class of securities of any enterprise (without
      otherwise participating in the activities of such enterprise) if such securities
      are listed on any national or regional securities exchange or have been
      registered under Section 12(g) of the Securities Exchange Act of 1934. Each
      Management Vendor agrees that this covenant is reasonable with respect to its
      duration, geographical area, and scope.

    

    (b) Each
      Management Vendor shall not, and shall not permit its Affiliates to, directly
      or
      indirectly, either for itself, themselves or any other Person, (A) induce or
      attempt to induce any employee to leave the employ of the Acquired Companies,
      (B) employ, or otherwise engage as an employee, independent contractor, or
      otherwise, any employee of the Acquired Companies (except that such Management
      Vendor shall be permitted to employ or engage an employee of the Acquired
      Companies in a business that does not directly or indirectly compete with the
      business of Purchaser, provided such Management Vendor does not solicit such
      employee of the Acquired Companies) or (C) induce or attempt to induce any
      customer, supplier, licensee, or business relation of the Business to cease
      doing business with the Acquired Companies, or in any way interfere with the
      relationship between any such customer, supplier, licensee, or business relation
      and or with the Acquired Companies.

    

    (c) Each
      Management Vendor shall not, and shall not permit its Affiliates to, directly
      or
      indirectly, either for itself, themselves or any other Person, solicit the
      business of any Person known to a Management Vendor to be a customer of the
      Business for any business that competes with the Business, whether or not such
      Management Vendor had personal contact with such Person.

    

    (d) Each
      Management Vendor shall not, and shall not permit its Affiliates to, at any
      time
      during or after the foregoing period, disparage the Acquired Companies or the
      Business, or any of their shareholders, directors, officers, employees, or
      agents.

    

    
      	
            	3.7.2	
              Remedies.
                If
                a Management Vendor breaches the covenants set forth in Clause 3.8,
                the
                Purchaser will be entitled to the following
                remedies:

            

    

     

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    (a) damages
      from such Management Vendor; and

    

    (b) in
      addition to its right to damages and any other rights it may have, to obtain
      injunctive or other equitable relief to restrain any breach or threatened breach
      or otherwise to specifically enforce the provisions of Clause 3.8, it being
      agreed that money damages alone would be inadequate to compensate the Purchaser
      and would be an inadequate remedy for such breach.

    

    The
      rights and remedies provided herein are cumulative and not alternative.
      Notwithstanding anything contained herein to the contrary, Purchasers recourse
      for breach of this Clause 3.7 shall not be limited to set-off of the Deferred
      Payment Amount or to amounts held under the Escrow Agreement, and no recourse
      shall be had for breach of this Clause 3.7 to any set-off of the Deferred
      Payment Amount or to any amounts held under the Escrow Agreement. 

     

    
      	
              4.

            	
              WARRANTIES
                AND INDEMNITIES:

            

    

    

    
      	
              4.1

            	
              Vendors’
                Warranties;
                Indemnification:

            

    

    

    The
      Vendors, jointly and severally, shall indemnify and hold harmless the Purchaser,
      and shall reimburse Purchaser, for, from and against each and every demand,
      claim, loss (which shall include any diminution in value), liability, judgment,
      damage, cost and expense (including, without limitation, interest, penalties,
      costs of preparation and investigation, and the reasonable fees, disbursements
      and expenses of attorneys, accountants and other professional advisers
      (individually a “loss” and collectively “losses”) imposed on or incurred by
      Purchaser, directly or indirectly, resulting from or arising out
      of:

    

    
      	
            	4.1.1	
              any
                Breach of any representation or warranty made by the Vendors in the
                Fourth
                Schedule attached hereto subject to any exceptions fairly and accurately
                disclosed in the Disclosure Letter;

            

    

    

    
      	
            	4.1.2	
              the
                amount of the Acquired Companies Debt in excess of $3,739,378; and
                

            

    

    

    
      	
            	4.1.3	
              the
                amount of any Vendor’s Transaction Costs which are paid or payable by an
                Acquired Company.

            

    

    

    

    
      	
              4.2

            	
              Warranties
                by Purchaser: 

            

    

    

    The
      Purchaser shall indemnify, and hold harmless (x) each of the Vendors and keep
      each of the Vendors indemnified against all and any expenses, costs, claims,
      demands, losses, damages and other liabilities whatsoever whether direct or
      consequential suffered or incurred by any Vendor as a result of any Breach
      of
      any Buyers Warranties contained in Clause 4.2 and (y) each of the Management
      Vendors and keep each of the Management Vendors indemnified against all and
      any
      expenses, costs, claims, demands, losses, damages and other liabilities
      whatsoever whether direct or consequential suffered or incurred by any Vendor
      as
      a result of any Breach of any Buyers Warranties contained in Clauses 4.3 or
      4.42.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    
      	
            	4.2.1	
              the
                statements contained in each of Clauses 4.2, 4.3, 4.4 and 4.5 respectively
                are at the date hereof true and not misleading and further that they
                will
                have been complied with in all respects, as if they have been entered
                into
                afresh at Completion and if, after the signing of this Agreement
                and
                before Completion, any matter arises which results or may result
                in such
                statements becoming untrue or misleading, the Purchaser shall immediately
                notify the Vendors fully in writing prior to
                Completion;

            

    

    

    
      	
            	4.2.2	
              the
                Purchaser is duly incorporated, validly existing and in good standing
                under the laws of New
                Jersey. Each of the Purchaser and its subsidiaries is duly qualified
                or
                licensed as a foreign corporation to do business, and is in good
                standing,
                in each jurisdiction in which the failure to be so qualified or licensed
                would have a material adverse effect on the business, assets, financial
                commissions or results of operations of Purchaser
                and its subsidiaries, taken as a
                whole;

            

    

    

    
      	
            	4.2.3	
              the
                Purchaser has power and authority to enter into this Agreement and
                the
                Ancillary Agreements;

            

    

    

    
      	
            	4.2.4	
              the
                execution, delivery and performance of this Agreement and the Ancillary
                Agreements, and the consummation of the transactions contemplated
                hereby
                and thereby, have been duly authorized by all necessary corporate
                action
                on the part of Purchaser and no further action is required on the
                part of
                Purchaser to authorize this Agreement, the Ancillary Agreements or
                the
                transactions contemplated hereby and
                thereby;

            

    

    

    
      	
            	4.2.5	
              the
                execution, delivery and performance of the terms of this Agreement
                and the
                Ancillary Agreements by the Purchaser do not infringe upon any provisions
                of:

            

    

    

    (1) any
      law
      or regulation or any order or decree of any authority, agency or court binding
      on the Purchaser;

     

    (2) the
      certificate of incorporation or bylaws of the Purchaser; or

     

    (3) any
      loan
      stock, bond, debenture or other deed, mortgage, contract or other undertaking
      or
      instrument to which the Purchaser is party;

    

    
      	
            	4.2.6	
              in
                acquiring the Shares, the Purchaser is acting as principal and not
                as
                agent or broker for any other
                person;

            

    

    

    
      	
              4.3

            	
              SEC
                Filings; Financial Statements;
                Consideration Shares

            

    

     

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    
      	
            	4.3.1	
              Each
                report, schedule, registration statement and definitive proxy statement
                filed by Company with the Securities and Exchange Commission
                (“SEC”)
                after March 31st,
                2005 including any amendments thereto (the “Purchaser
                SEC Reports”),
                which are all the forms, reports and documents required to be filed
                by
                Company with the SEC after March 31st,
                2005, (X) were prepared in accordance with, and complied in all
                material respects with, the requirements of the Securities Act or
                the
                Exchange Act, as the case may be, and the rules and regulations of
                the SEC
                thereunder applicable to such Purchaser SEC Reports and were filed
                on a
                timely basis and (Y) did not at the time they were filed (and if
                amended or superseded by a filing prior to the date of this Agreement
                then
                on the date of such filing) contain any untrue statement of a material
                fact or omit to state a material fact required to be stated therein
                or
                necessary in order to make the statements therein, in light of the
                circumstances under which they were made, not misleading. None of
                Purchaser’s subsidiaries is required to file any reports or other
                documents with the SEC.

            

    

    

    
      	
            	4.3.2	
              Each
                set of consolidated financial statements (including, in each case,
                any
                related notes thereto) contained in the Purchaser SEC Reports, including
                any Purchaser SEC Reports filed after the date hereof until Completion,
                other than the consolidated financial statements of the Acquired
                Companies
                or the pro forma financial information derived therefrom, as to which
                the
                Purchaser makes no representations or warranties (X) complied as
                to form
                in all material respects with the published rules and regulations
                of the
                SEC with respect thereto, (Y) was prepared in accordance with United
                States generally accepted accounting principles, applied on a consistent
                basis throughout the periods involved (except as may be indicated
                in the
                notes thereto or, in the case of unaudited statements, for the absence
                footnotes as permitted by Form 10-Q of the Exchange Act) and (Z)
                fairly presents the consolidated financial position of Purchaser
                and its
                subsidiaries at the respective dates thereof and the consolidated
                results
                of operations and cash flows for the periods indicated, except that
                the
                unaudited interim financial statements were or are subject to normal
                year-end adjustments.

            

    

    

    
      	
            	4.3.3	
              the
                Purchaser warrants that the Consideration Shares issued as consideration
                in accordance with the provisions of this Agreement, shall have been
                duly
                and validly authorised, issued and delivered by the Purchaser free
                from
                all encumbrances (save for any lock up, vesting, escrow or other
                arrangements contemplated by this Agreement) and shall have been
                issued in
                Compliance with US securities laws and will be fully paid for and
                not
                subject to any call, pre-emptive or similar rights and shall rank
                pari
                passu in all respects with the existing common stock of the
                Purchaser;

            

    

    

    
      	
              4.4

            	
              Absence
                of Certain Changes or Events. 

            

    

     

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    
      	
            	4.4.1	
              Since
                1 January, 2006, there has not been, occurred or arisen any event
                or
                condition which has had a material adverse effect on the business,
                assets
                (including intangible assets), financial conditions or results of
                operations of Purchaser and its subsidiaries, taken as a
                whole.

            

    

     

    
      	
              5.

            	
              TERMINATION
                

            

    

     

    [Intentionally
      Deleted].

     

    
      	
              6.

            	
              REMEDIES

            

    

    

    
      	
              6.1

            	
              Set
                Off

            

    

    

    
      	
            	6.1.1	
              The
                Deferred Purchase Price shall be reduced in accordance with Clause
                2 of
                this Agreement. The
                Purchaser’s sole remedy in respect of any Claim (other than a Claim
                pursuant to Clauses 4.1.2, or 4.1.3) shall be the reduction of the
                Deferred Purchase Price or payment pursuant to the Escrow Agreement.
                If
                the Purchaser wishes to bring a Claim it shall give written notice
                to
                Vendors in accordance with Clause 6.2.1.1 specifying in reasonable
                detail
                the basis for the Claim (“Claim Notice”). Notwithstanding
                the foregoing, if Vendors Representative (on behalf of Vendors) notifies
                Purchaser (and, if applicable, the Escrow Agent) within 30 days of
                receipt
                of a Claim Notice that Vendors disagree with the Claim, the parties
                agree
                to cooperate to try and reach a resolution of the dispute, and if
                they
                cannot do so the Purchaser may commence litigation to resolve the
                dispute.
                If Vendors Representative (on behalf of Vendors) does not so notify
                Purchaser (and, if applicable, the Escrow Agent) within said 30-day
                period, such Claim and the amount set out in the relevant Claim Notice
                shall be deemed to be “agreed” for the purposes of Clause 6.22 and the
                Deferred Purchase Price shall, in accordance with Clause 2.2.3, be
                reduced
                by the amount set out in the Claim Notice (or, following the Deferred
                Payment Date, the amount set out in the Claim Notice shall be paid
                to
                Purchaser pursuant to the Escrow Agreement) and any such reduction
                or
                payment shall be made in full and final settlement of the
                Claim

            

    

    

    
      	
              6.2

            	
              Limitations:
                

            

    

    

    Notwithstanding
      the provisions of clauses 4.1 and 4.2, and subject to clause 6.20 hereof the
      parties will not be liable for any Claim

    

    
      	
            	6.2.1	
              Unless:
                

            

    

    

    
      	
            	6.2.1.1	
              Time:
                Notice
                of it is given in writing within eighteen (18) months following Completion
                setting out details of the event or circumstances giving rise to
                the
                Claim, the legal grounds on which the Claim is based and the total
                amount
                of the liability.

            

    

     

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    
      	
            	6.2.2	
              Maximum
                Amount:

            

    

    

    
      	
            	6.2.2.1	
              Other
                than for any Claim pursuant to Clauses 4.1.2 , or 4.1.3, the
                maximum aggregate liability of the Vendors for all Claims shall be
                the
                Deferred Purchase Price. Any such liability (other
                than for a Claim pursuant to Clauses 4.1.2, or 4.1.3) may only be
                satisfied by reduction of the Deferred Purchase Price or out of the
                amount
                held pursuant to the Escrow Agreement. Accordingly (other than for
                a Claim
                pursuant to Clauses 4.1.2, or 4.1.3) no recourse shall be had in
                the
                settlement thereof to any other assets of the Vendors.
                

            

    

    

    
      	
              6.3

            	
              Further
                limitations: 

            

    

    

    Notwithstanding
      anything to the contrary in this Agreement and in particular the provisions
      of
      clause 4.1:

    

    
      	
            	6.3.1	
              Nothing
                in this agreement will be deemed to relieve the Purchaser from any
                common
                law or other duty to mitigate any loss or damage incurred by
                him;

            

    

    

    
      	
            	6.3.2	
              Subject
                to clause 8.11.2, no Person other than the Purchaser or the Vendors
                will
                be entitled to make a Claim or other claim under this Agreement,
                neither
                will the amount of the Claim be calculated by reference to loss or
                damage
                suffered by any Person other than the Purchaser or the Vendors;
                

            

    

    

    
      	
            	6.3.3	
              If
                any circumstances giving rise to a Claim arise, the Purchaser shall
                give
                written notice to the Vendors Representative and, via the Vendors
                Representative, keep the Vendors fully informed of all material
                developments;

            

    

    

    
      	
            	6.3.4	
              The
                Vendors will not be liable in respect of any Claim to the extent
                that it
                arises or is increased or extended as a result of any event occurring
                with
                retrospective effect, a change in the law or in any regulation,
                requirement or code of conduct of any relevant agency or regulatory
                body
                or any parliamentary statement, or statement by the Revenue Commissioners
                concerning any change in revenue practice.

            

    

     

    
      	
              6.4

            	
              Recovery
                from Third Parties:

            

    

    

    
      	
            	6.4.1	
              If
                at any time the Purchaser or any Acquired Company is entitled to
                recover
                from insurers or any other third parties whether by payment, discount,
                credit, relief or otherwise howsoever (in this clause called a “Third
                Party Claim”) in relation to any matter giving rise to a Claim the
                Purchaser shall:

            

    

     

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    
      	
            	6.4.2	
              Notify
                the Vendors as soon as reasonably practicable and provide such information
                and assistance as the Vendors may require relating to the entitlement
                and
                the action taken or proposed to be taken by the Purchaser or the
                Acquired
                Company;

            

    

    

    
      	
            	6.4.3	
              Take
                (at the expense of the Vendors) such reasonable steps or proceedings
                as
                the Vendors may require, and act in accordance with any requirements
                of
                the Vendors, subject to the Purchaser being indemnified by the Vendors
                against all reasonable costs and expenses incurred in that connection;
                and

            

    

    

    
      	
            	6.4.4	
              Keep
                the Vendors informed of the progress of any such steps, proceedings
                or
                actions and the amount of the relevant Claim against the Vendors
                will be
                reduced to the extent of any amount recovered or of which advantage
                is
                otherwise obtained or, if payment has already been made by the Vendors,
                the Purchaser shall make a refund as
                appropriate.

            

    

    

    
      	
            	6.4.5	
              Steps
                taken by Vendors to cause the Purchaser or an Acquired Company to
                pursue,
                or co-operate in pursuit of, a Third Party Claim will not be taken
                as an
                admission of the relating Claim or that the Vendors are liable in
                any
                particular amount or at all.

            

    

    

    
      	
              6.5

            	
              Co-operation.

            

    

    

    
      	
            	6.5.1	
              The
                Purchaser shall allow, and shall cause the Acquired Companies to
                allow,
                the Vendors and their professional advisers to investigate any matter
                or
                circumstance alleged to give rise to a
                Claim.

            

    

    

    
      	
            	6.5.2	
              For
                that purpose, the Purchaser shall give and shall cause the Acquired
                Companies to give, at Vendors sole expense, all reasonable assistance
                requested on reasonable notice by the Vendors or their accountants,
                solicitors or other professional advisers, including reasonable access
                to
                and copies of any relevant documents or information in the possession
                of
                the Purchaser or the Acquired Companies.

            

    

    

    
      	
            	6.5.3	
              The
                provision of co-operation under this clause, or the request for
                co-operation, will not be taken as prejudicing the rights of any
                party
                with regard to the validity or extent of any
                Claim.

            

    

     

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    
      	
              6.6

            	
              Third
                Party Claims/Notice to Warranting Party.

            

    

    

    In
      the
      case of any claim asserted by a third party against the Purchaser or any
      Acquired Company (the “Warranted Party”) in circumstances which give rise to a
      Claim, notice shall be given by the Purchaser to the Vendors’ Representative
      (the “Warranting Party”) promptly after such Warranted Party has actual
      knowledge of the claim, and the Warranted Party shall permit the Warranting
      Party (at the cost and expense of such Warranting Party) to assume the defence
      of any claim or litigation resulting therefrom; provided, however, that (i)
      the
      counsel for the Warranting Party who shall conduct the defence of such claim
      or
      litigation shall be reasonably satisfactory to the Warranted Party, (ii) the
      Warranted Party may participate in such defence at such Warranted Party’s
      expense, and (iii) the omission by any Warranted Party to give notice as
      provided herein shall not relieve the Warranting Party of its obligation under
      this Agreement except to the extent that such omission results in a failure
      of
      actual notice to the Warranting Party and such Warranting Party is materially
      damaged as a result of such failure to give notice. Except with the prior
      written consent of the Warranted Party, no Warranting Party, in the defence
      of
      any such claim or litigation, shall consent to entry of any judgement or enter
      into any settlement that provides for injunctive or other non-monetary relief
      affecting the Warranted Party or that does not include as an unconditional
      term
      thereof the giving by each claimant or plaintiff to such Warranted Party of
      a
      release from all liability with respect to such claim or litigation. In the
      event that the Warranted Party shall in good faith determine that the conduct
      of
      the defence of any Claim hereunder or any proposed settlement of any such Claim
      by the Warranting Party has a materially adverse effect on the Purchaser and
      its
      group of companies as a whole or that the Warranted Party may have available
      to
      it one or more defences or counterclaims that are inconsistent with one or
      more
      of those that may be available to the Warranting Party in respect of such claim
      or any litigation relating thereto, the Warranted Party shall have the right
      at
      all times to take over and assume control of the defence, settlement,
      negotiations or litigation relating to any such claim at the sole cost of the
      Warranted Party, provided that if the Warranted Party does so take over and
      assume control, the Warranted Party shall not settle such claim or litigation
      without the written consent of the Warranting Party, such consent not to be
      unreasonably withheld. In the event that the Warranting Party does not accept
      the defence of any matter as above provided, the Warranted Party shall have
      the
      full right to defend against any such claim or demand and shall be entitled
      to
      settle or agree to pay in full such claim or demand subject to such Warranted
      Party’s rights to recover under a warranty under this Agreement. In any event,
      the Warranting Party and the Warranted Party shall reasonably cooperate in
      the
      defence of any claim or litigation subject to this Clause 6.6 and the records
      of
      each shall be available to the other with respect to such defence, except to
      the
      extent such records are subject to attorney/client privilege; provided, however,
      that the Parties shall negotiate and enter into a joint defence agreement
      satisfactory to each Party if such an agreement would avoid the waiver of such
      attorney/client privilege.

     

    
      	
              6.7

            	
              [Intentionally
                Blank] 

            

    

    

    
      	
              6.8

            	
              Survival
                of Representations and Warranties.
                

            

    

    

    All
      representations and warranties in this Agreement and any other certificate
      or
      document delivered pursuant to this Agreement will survive the Completion Date
      for eighteen (18) months from the Completion Date.

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    

    
      	
              6.9

            	
              Exclusivity
                of Remedies.
                

            

    

    

    The
      remedies provided for in this Clause 6 are, subject to Clause 6.20 hereof,
      exclusive and shall be in lieu of all other remedies in respect of any Claim,
      including without limitation for breaches of the representations and warranties
      hereunder. 

    

    
      	
              6.10

            	
              Insured
                Claims.
                

            

    

    

    In
      case
      any event shall occur that would otherwise entitle either party to assert a
      Claim, no Loss shall be deemed to have been sustained by the Warranted Party
      to
      the extent of any proceeds actually received by the Warranted Party from any
      insurance policies with respect thereto.

    

    
      	
              6.11

            	
              Treatment
                of Claim Payments.
                

            

    

    

    Any
      payment made to the Purchaser will be treated for all purposes as a reduction
      in
      the Purchase Price under Clause 2.2. 

    

    
      	
              6.12

            	
              Confirmation
                by Purchaser

            

    

    

    The
      Purchaser confirms that it has not relied on any warranty, representation or
      undertaking of the Vendors (or any of them) or of any other person save for
      the
      Warranties.

    

    
      	
              6.13

            	
              Disclosure
                Letter

            

    

    

    The
      Vendors shall not be liable in respect of any Claim (other
      than a Claim pursuant to Clauses 4.1.2, 4.1.3 or 7.3 or pursuant to the Tax
      Deed) to
      the
      extent that the matter or matters giving rise to such Claim have been fairly
      and
      accurately disclosed in the Disclosure Letter.

    

    
      	
              6.14

            	
              Limits
                on Liability

            

    

    

    The
      Vendors shall not be liable in respect of any Claim (other
      than a Claim pursuant to Clauses 4.1.2, 4.1.3, or 7.3 or pursuant to the Tax
      Deed) unless
      the loss thereby sustained exceeds US$5,000 and until the aggregate cumulative
      loss thereby sustained in respect of any and all such Claims exceeds US$50,000,
      after which the Vendors will be liable for all such losses without
      deduction.

    

    
      	
              6.15

            	
              Issues
                of Proceedings

            

    

    

    Any
      Claim
      in respect of which a Claim Notice shall have been given in accordance with
      Clause 6.1 above, which Claim Notice shall have been properly objected to by
      the
      Vendor’s Representative within 30 days as provided in Clause 6.1 shall, if it
      has not been previously satisfied, settled or withdrawn, be deemed to have
      been
      irrevocably withdrawn and lapsed unless proceedings in respect of such Claim
      shall have been issued and served on the Vendors Representative not later than
      12 months from the date the Purchaser serves the Claim Notice, or in the case
      of
      any Claim in respect of which Proceedings have been commenced by or against
      an
      Acquired Company or the Purchaser, not later than the date on which such
      Proceedings are finally determined.

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    

    
      	
              6.16

            	
              Reduction
                in Liability

            

    

    

    The
      Vendors (or any of them) shall have no liability (or such liability shall be
      reduced) in respect of any Claim:

    

    
      	
            	6.16.1	
              if
                and to the extent that allowance, provision or reserve for or in
                respect
                of the liability or other matter giving rise to such claim has been
                made
                in the Financial Statements or Interim Balance Sheet or such liability
                or
                matter was specifically referred to in the notes to the Financial
                Statements or Interim Balance
                Sheet;

            

    

    

    
      	
            	6.16.2	
              if
                and to the extent that such claim is attributable to or would not
                have
                arisen or would have been reduced or eliminated but for any voluntary
                act,
                omission, transaction or arrangement carried out after Completion
                by the
                Purchaser, any Acquired Company and/or any subsidiary of the Purchaser
                and/or any person connected with the Purchaser and/or an Acquired
                Company
                otherwise than in the ordinary and usual course of business of the
                Company
                as presently carried on;

            

    

    

    
      	
            	6.16.3	
              if
                and to the extent that such claim relates to or is increased by a
                claim or
                liability for Taxation which would not have arisen but for any winding
                up
                or cessation after Completion of any trade or business carried on
                by any
                Acquired Company, except for the winding up or cessation of any trade
                or
                business carried on by CEM
                Barbados;

            

    

    

    
      	
            	6.16.4	
              if
                and to the extent such claim would not have arisen or would have
                been
                reduced or eliminated but for a change of accounting policy or practice
                of
                any Acquired Company after
                Completion;

            

    

    

    
      	
            	6.16.5	
              if
                and to the extent of any relief or reduction in Taxation arising
                by virtue
                of the loss or damage in respect of which the Claim was
                made;

            

    

    

    
      	
            	6.16.6	
              if
                and to the extent that such Claim has arisen in respect of any act
                or
                omission stipulated to be carried out or omitted pursuant to or which
                is
                contemplated by the terms of this Agreement;
                and

            

    

    

    
      	
            	6.16.7	
              if
                and to the extent that  the liability or other matter giving rise to
                such Claim has been taken into account in the consolidated current
                liabilities of the Acquired Companies comprised in the Completion
                Working
                Capital (as agreed or determined in accordance with Clause 7.2).
                

            

    

     

    
      	
              6.17

            	
              Contingent
                Liability

            

    

    

    If
      in
      respect of any Claim, the liability of the Purchaser or the Acquired Company
      is
      contingent only, then the Vendors shall not be under any obligation to make
      any
      payment to the Purchaser until such time as the contingent liability ceases
      to
      be contingent and becomes actual.

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    

    
      	
              6.18

            	
              Double
                Recovery

            

    

    

    Neither
      the Purchaser nor any Acquired Company shall be entitled to recover damages
      in
      respect of any claim for breach of the Warranties or in respect of any claim
      under the Tax Deed or otherwise obtain reimbursement or restitution where to
      do
      so would involve recovery more than once in respect of the same loss; for the
      avoidance of doubt any recovery by the Purchaser or an Acquired Company under
      the Tax Deed shall be deemed, to the extent of that recovery, to be a recovery
      by all other parties who would otherwise be entitled to such
      recovery.

    

    
      	
              6.19

            	
              Vendors
                Representative

            

    

     

    
      	
            	6.19.1	
              Upon
                consummation of the transactions contemplated herein, and without
                further
                act of any Vendor, Hibernia Capital Partners, Ltd. shall be appointed
                attorney-in-fact (the “Vendors
                Representative”)
                for each Vendor for and on behalf of each such Vendor, to give and
                receive
                notices and communications, to authorize delivery to the Purchaser
                of
                amounts under the Escrow Agreement, to object to such deliveries,
                to agree
                to, negotiate, enter into settlements and compromises of, and demand
                arbitration and comply with orders of courts and awards of arbitrators
                with respect to any claims by Purchaser, to take all actions necessary
                or
                appropriate in the judgment of Vendors Representative for the
                accomplishment of the foregoing. Notices or communications to or
                from the
                Vendors Representative shall constitute notice to or from each of
                the
                Vendors.

            

    

    

    
      	
            	6.19.2	
              Each
                decision, act, consent or instruction of the Vendors Representative
                shall
                constitute a decision of all the Vendors shall be final, binding
                and
                conclusive upon each Vendor and their successors or transferees,
                and the
                Escrow Agent and the Purchaser may rely upon any such decision, act,
                consent or instruction of the Vendors Representative as being the
                decision, act, consent or instruction of each every Vendor. The Escrow
                Agent and the Purchaser are hereby relieved from any liability to
                any
                person for any acts done by them in accordance with such decision,
                act,
                consent or instruction of the Vendors
                Representative.

            

    

    

    
      	
            	6.19.3	
              The
                agency described in this Clause 6.12 may be changed by the Vendors
                from
                time to time upon not less than thirty (30) days prior written notice
                to
                the Purchaser. The Vendors Representative may resign upon not less
                than
                thirty (30) days prior written notice to the Purchaser. Any vacancy
                in the
                position of Vendors Representative may be filled by Hibernia Capital
                Partners, Ltd. 

            

    

    

    
      	
            	6.19.4	
              The
                Vendors Representative shall not be entitled to compensation for
                his or
                her services rendered hereunder. However, the Vendors Representative
                shall
                be reimbursed by the Vendors for reasonable counsel fees and other
                reasonable out-of-pocket expenses incurred in connection with the
                provisions of this Agreement and the Escrow
                Agreement.

            

    

     

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

    
      	
            	6.19.5	
              The
                Vendors Representative may act upon any instrument or other writing
                believed by such Vendors Representative in good faith to be genuine
                and to
                be signed or presented by the proper person and shall not be liable
                for
                any act done or omitted hereunder as Vendors Representative, except
                for
                his or her own wilful default or gross negligence. The Vendors shall,
                jointly and severally, indemnify the Vendors Representative and hold
                the
                Vendors Representative harmless against any loss, liability or expense
                incurred without wilful default or gross negligence on the part of
                the
                Vendors Representative and arising out of or in connection with the
                acceptance or administration of the Vendors Representative’s duties
                hereunder, including the reasonable fees and expenses of any legal
                counsel
                retained by the Vendors
                Representative.

            

    

    

    
      	
              6.20

            	
              Provisions.

            

    

    

    In
      the
      event that a Vendor or the Purchaser has committed fraud then the limitations
      detailed in this Clause 6 shall not apply to any Claim in respect of that fraud
      brought by the Purchaser against such Vendor or by the Vendors against the
      Purchaser, as the case may be, provided however, it is expressly agreed and
      acknowledged that in the event of a Claim for fraud being taken by the Purchaser
      against a Vendor, then the Purchaser shall only have a right of recovery as
      against the Vendor found to have actually committed such fraud and Clause 6
      shall not apply in respect of that Vendor and the Purchaser expressly
      acknowledges that it shall not have any right whatsoever to pursue any other
      Vendor. Notwithstanding the provisions of Clause 6.9, nothing contained herein
      shall be deemed a waiver by any party of the right to specific performance
      or
      injunctive relief.

    

    
      	
              6.21

            	
              The
                Vendors and the Purchaser shall use reasonable endeavours to progress
                a
                Claim with a view to having the Claim settled or resolved at an early
                date
                including if possible, once proceedings have been taken, the making
                of an
                application to have the matter transferred to the Commercial List
                of the
                High Court pursuant to Statutory Instrument No. 2 of 2004 (The Rule
                of
                Superior Courts (Commercial Proceedings),
                2004).

            

    

    

    
      	
              6.22

            	
              For
                the purposes of this Agreement:

            

    

    

    
      	
            	6.22.1	
              a
                Claim shall be deemed to have been settled (and a settlement to have
                been
                reached in respect of that Claim) when the Vendors and the Purchaser
                shall
                agree in writing (or shall be deemed to agree pursuant to Clause
                6.1) the
                amount by which the Deferred Purchase Price is reduced or an amount
                is
                paid out of the Escrow Account in settlement of the Claim and the
                amount
                so agreed (or deemed to be agreed pursuant to Clause 6.1) shall be
                deemed
                to be the amount of that Claim;

            

    

    

    
      	
            	6.22.2	
              a
                Claim shall be deemed to have been resolved (and a resolution to
                have been
                reached in respect of that Claim) where a court of competent jurisdiction
                or tribunal of law has delivered judgment in respect of the Claim
                (whether
                on appeal or otherwise); and

            

    

     

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    (i) such
      judgment has not been appealed against within the requisite time period for
      so
      doing; or

    

    (ii) such
      judgment has been appealed against but such appeal has been withdrawn;
      or

    

    (iii) there
      shall be no right of appeal against such judgment;

    

    and
      the
      amount by which the Deferred Purchase Price shall be reduced or an amount is
      paid out of the Escrow Account in respect of the claim on foot of the judgment
      shall be deemed to be the amount of the Claim awarded to the Purchaser by the
      relevant court or tribunal of law. 

    

    
      	
              6.23

            	
              Pre-Estimate
                of Liability

            

    

     

    
      	
            	6.23.1	
              The
                Purchaser shall give notice to the Vendors’ Representative (the
                "Pre-Estimate Notification") of the amount, in its opinion, of the
                pre-estimate of a Claim (the "Purchaser's Pre-Estimate") within 10
                days of
                notifying that Claim to the Vendors in accordance with this Agreement
                and/or, as the case may be, the Tax Deed.

            

    

    

    
      	
            	6.23.2	
              The
                Vendors’ Representative shall notify the Purchaser within 10 days of
                receiving a Pre-Estimate Notification if it disagrees with the Purchaser's
                PreEstimate of the Claim in question and, in so doing, shall set
                out the
                amount, in its opinion, of the Pre-Estimate of such Claim (the "Vendors'
                Pre-Estimate"). 

            

    

    

    
      	
            	6.23.3	
              If
                the Vendors’ Representative fails to notify the Purchaser within 10 days
                of receiving a Pre-Estimate Notification that it disagrees with the
                Purchaser's Pre-Estimate the Vendors shall be deemed to have accepted
                the
                Purchaser's Pre-Estimate of the claim for the purposes of this
                Agreement.

            

    

    

    
      	
            	6.23.4	
              If
                the Vendors’ Representative notifies the Purchaser that it disagrees with
                the Purchaser's Pre-Estimate in accordance with Clause 6.23.2 above,
                the
                Purchaser and the Vendors’ Representative shall seek to agree the relevant
                Pre-Estimate and, failing agreement within 10 days of the date of
                the
                notice given by the Vendors’ Representative under Clause 6.23.2, shall
                refer the matter to an Expert.

            

    

    

    
      	
              6.24

            	
              The
                giving of notice or the failure to give notice pursuant to Clause
                6.23
                shall not in any way be construed as regards the Vendors or the Purchaser
                as an acceptance or denial of any liability in respect of the relevant
                Claim and shall be entirely without prejudice to any subsequent litigation
                arising out of such Claim.

            

    

     

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

     

    
      	
              6.25

            	
              The
                "Estimated Claim Amount" in respect of a Claim shall be
                :

            

    

     

    
      	
            	6.25.1	
              the
                Purchaser's Pre-Estimate, if the Vendors’ Representative fails to notify
                the Purchaser within 10 days of receiving a Pre-Estimate Notification
                that
                it disagrees with the Purchaser's Pre-Estimate;
                or

            

    

    

    
      	
            	6.25.2	
              the
                pre-estimate as agreed between the Purchaser and the Vendors’
                Representative pursuant to Clause 6.23.4;
                or

            

    

    

    
      	
            	6.25.3	
              the
                amount which the Purchaser would be likely to be entitled to recover
                from
                the Vendors in respect of the Relevant Claim if taken at the date
                of the
                Purchaser giving Notice pursuant to Clause 6.23.2 as determined by
                the
                Expert in accordance with this Clause 6.

            

    

    

    
      	
              6.26

            	
              Where
                a matter is referred to an expert (an "Expert") pursuant to Clause
                6.23.4
                the Expert shall be a Senior Counsel and shall be appointed by agreement
                between the Vendors’ Representative and the Purchaser or, failing
                agreement within 5 days of the initiation of reference, by the Chairman
                for the time being of the Bar Council of Ireland (the "Chairman")
                on the
                application of either the Vendors’ Representative or the
                Purchaser.

            

    

    

    
      	
              6.27

            	
              If
                an Expert has been appointed but is unable or unwilling to complete
                the
                reference to him, another Expert shall be appointed by agreement
                between
                the Vendors’ Representative and the Purchaser or, failing agreement within
                5 days of their being notified that the Expert is unable or unwilling
                to
                complete the reference by the Chairman on the application of either
                the
                Vendors’ Representative or the
                Purchaser.

            

    

    

    
      	
              6.28

            	
              Any
                Expert shall act as an expert and not as an arbitrator.
                

            

    

    

    
      	
              6.29

            	
              The
                Vendors’ Representative and the Purchaser shall
                :

            

    

    

    
      	
            	6.29.1	
              request
                the Expert to determine the Pre-Estimate of a Claim within 15 days
                of him
                receiving the reference or such longer period as may be agreed between
                the
                Vendor’s Representative, the Purchaser and the
                Expert;

            

    

    

    
      	
            	6.29.2	
              without
                prejudice to their respective obligations set out herein above, the
                Vendors’ Representative and the Purchaser shall each use all reasonable
                endeavours to co-operate with the Expert in determining the Pre-Estimate
                of a Relevant Claim and for that purpose will provide to the Expert
                with
                all such information and documentation as the Expert may require
                to
                determine the Pre-Estimate of a Relevant
                Claim.

            

    

    

    
      	
              6.30

            	
              The
                role of the Expert shall be to determine based only on the merits
                of, and
                having reference to, the respective cases put forward in the submissions
                made by the Vendors’ Representative and the Purchaser pursuant to Clause
                6.29.2 above, whether or not the Purchaser has an arguable case against
                the Vendors based on reasonable grounds and if the Expert determines
                that
                the Purchaser has an arguable case against the Vendors based on reasonable
                grounds, the amount which the Purchaser would be likely to be entitled
                to
                recover from the Vendors in respect of such Claim if
                taken at the date of the Purchaser giving Notice pursuant to Clause
                6.23.2.

            

    

     

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

     

    
      	
              6.31

            	
              The
                decision of the Expert (which shall be a reasoned decision) shall,
                in the
                absence of fraud or manifest error, be final and binding on the Vendors
                and the Purchaser as regards the amount of the Estimated Claim
                Amount.

            

    

    

    
      	
              6.32

            	
              The
                Expert shall have the right to seek such professional assistance
                and
                advice as he may require in fulfilling his duties. In determining
                the
                costs of any reference to the Expert pursuant to this Article 6,
                the
                Expert shall apply the general principle that
                :

            

    

    

    
      	
            	6.32.1	
              if
                the Expert determines that the Estimated Claim Amount is equal to
                or
                greater than the amount notified by the Purchaser to the Vendors’
                Representative pursuant to Clause 6.23.1 above, the costs shall be
                borne
                by Vendors;

            

    

    

    
      	
            	6.32.2	
              if
                the Expert determines that the Estimated Claim Amount is equal to
                or less
                than the amount notified by the Vendors Representative to the Purchaser
                in
                accordance with Clause 6.23.2 above, the costs shall be borne by
                the
                Purchaser; and

            

    

    

    
      	
            	6.32.3	
              if
                the Expert determines that the Estimated Claim Amount is an amount
                between
                the amount notified by the Purchaser and the amount notified by the
                Vendors’ Representative, the Purchaser and the Vendors shall respectively
                bear the Purchaser's Proportion and the Vendor's Proportion of the
                costs.

            

    

    

    For
      the
      purposes of this Clause 6.32 :-

    

    "Vendors
      Proportion" means the percentage calculated using the following
      formula

    

    F
      =
(A
      - B)
      x
100

          
      (C - B)      1

    

    Where
      :

    

    F
       =
       the
      Vendors Proportion

    A = the
      amount of the Estimated Claim Amount as determined by the Expert

    
      	 	
              B
                

            	
              =

            	
              the
                amount of the Vendors' Pre-Estimate as notified by the Vendors
                Representative

            

    

    
      	 	
              C

            	
              =

            	
              the
                amount of the Purchaser Pre-Estimate as notified by the Purchasers;
                and

            

    

    

    
      	 	
              "Purchaser's
                Proportion" means the percentage equal to 100 per cent less the Vendor's
                Proportion. 

            

    

    

    
      	
              6.33

            	
              For
                the avoidance of doubt, any agreement or determination of the Estimated
                Claim Amount is solely for the purpose of facilitating the Purchaser’s and
                the Vendors’ right to payment or set-off a portion of the Deferred
                Purchase Price and is not for the purpose of determining any Claim.
                If the
                amount of an Unsettled Claim is subsequently settled or resolved
                to be
                more than the Estimated Claim Amount, the Purchaser shall, subject
                to the
                limitation of the Purchaser’s remedy in respect of any claims under Clause
                6 of this Agreement, be entitled to seek such other remedies the
                Purchaser
                may have. If any Claim shall have been referred to an Expert pursuant
                to
                Clause 6.23.4, and the Estimated Claim Amount in respect thereof
                shall not
                have been determined by the Deferred Payment Date, the Expert shall
                continue to act in accordance with the provisions of this Clause
                6 until
                the Estimated Claim Amount is
                determined.

            

    

     

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

     

    
      	
              7.

            	
              WORKING
                CAPITAL STATEMENTS 

            

    

    

    
      	
              7.1

            	
              Estimated
                Working Capital Statement.
                Attached as Exhibit C is the “Estimated Working Capital Statement”. The
                Estimated Working Capital Statement has been prepared by Vendors,
                based
                upon their good faith estimates and assumptions and in accordance
                with
                GAAP consistently applied and using the same practices, principles
                and
                methodologies used in preparing the monthly management accounts,
                and shows
                thereon calculation of the amount (“Estimated Working Capital”) as at
                close of business on 31 March 2006 obtained by subtracting: (i) the
                amount
                of the consolidated current liabilities of the Company, from (ii)
                the
                amount of the consolidated current assets of the Company; it being
                acknowledged that no corporate profits tax, no cash, no debt and
                no amount
                outstanding from the Company to any Affiliate of the Company, or
                from any
                Affiliate of the Company to the Company, shall in any manner enter
                into
                the foregoing calculation. 

            

    

     

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

     

    
      	
              7.2

            	Completion
              Working Capital Statement.

    

     

    (a) Within
      sixty (60) days from and after the Completion, the Purchaser shall prepare,
      in
      accordance with GAAP consistently applied using the same practices, principles
      and methodologies used in preparing the monthly management accounts, and shall
      deliver to the Vendors Representative, a statement showing thereon calculation
      of the amount (“Completion Working Capital”) at Completion obtained by: (i)
      subtracting the amount of the consolidated current liabilities of the Company,
      from (ii) the amount of the consolidated current assets of the Company; it
      being
      acknowledged that no corporate profits tax, no cash, no debt and no amount
      outstanding from the Company to any Affiliate of the Company, or from any
      Affiliate of the Company to the Company, shall in any manner enter into the
      foregoing calculation.

    

    (b) Within
      thirty (30) days after its receipt of such statement, the Vendors Representative
      shall examine such statement, and any determinations, computations, and
      decisions made in the preparation thereof. In the event the Vendors
      Representative shall disagree with any of the determinations, computations
      or
      decisions relating to the preparation of such statement, the Vendors
      Representative shall, within thirty (30) days after delivery of such statement,
      serve notice of such disputed item or items upon the Purchaser, and the Vendors
      Representative and the Purchaser shall thereupon endeavour to reach agreement
      with respect thereto. Any failure by the Vendors Representative to deliver
      such
      notice within such period with respect to any item or items shall be deemed
      conclusive acceptance by the Vendors of such item or items. If such agreement
      with respect to any item identified in a notice as aforesaid shall not be
      reached within ten (10) days of the date of such notice of disagreement, such
      disputed item or items shall be submitted for determination to a firm of
      independent public accountants reasonably acceptable to both the Vendors
      Representative and the Purchaser (which shall not be an accounting firm retained
      on a regular basis by the Purchaser, or any Affiliate of the Purchaser, or
      the
      Vendor, or any Affiliate of the Vendor, unless consented to by Purchaser and
      the
      Vendors Representative), the cost of which shall be borne equally by the Vendors
      and the Purchaser. The determination of such independent public accountants
      with
      respect to any item or items shall be conclusive and binding upon the parties.
      The foregoing statement, completed as aforesaid, is referred to herein as the
      “Completion Working Capital Statement”. If Completion Working Capital is greater
      than Estimated Working Capital, the amount by which Completion Working Capital
      exceeds Estimated Working Capital shall be referred to herein as the “Working
      Capital Surplus”. If Completion Working Capital is less than Estimated Working
      Capital, the amount by which Estimated Working Capital exceeds Completion
      Working Capital shall be referred to herein as the “Working Capital Deficiency”.
      Currency translation between Euros and US dollars for determining Completion
      Working Capital and Estimated Working Capital shall be computed at the rate
      of
      1.2132 US dollars to 1 Euro. 

    

    
      	
              7.3

            	
              Purchase
                Price Adjustments.
                

            

    

    

    Within
      ten (10) days after the determination under Clause 7.2 hereof of all disputed
      items contained in the Completion Working Capital Statement and the calculation
      of the Working Capital Deficiency (if any) or Working Capital Surplus (if any),
      the parties shall recalculate the Purchase Price and effectuate such payments
      as
      follows: (x) if there is determined to be a Working Capital Surplus of greater
      than $100,000, the amount in excess of $100,000 shall be repaid to Purchaser
      by
      the Vendors within three (3) days of such recalculation; and (y) if there is
      determined to be a Working Capital Deficiency of greater than $100,000, the
      amount in excess of $100,000, shall be paid to the Vendors by the Purchaser
      within three (3) days of such recalculation. Payments pursuant to this Clause
      7.3 shall be made in Euros and will be computed based on the exchange rate
      in
      effect on the date of such payment.

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    

    
      	
              8.

            	
              MISCELLANEOUS
                PROVISIONS

            

    

    

    
      	
              8.1

            	
              Transfers
                to be stamped.
                

            

    

    

    Following
      Completion, the Purchasers shall promptly deliver to the Revenue Commissioners
      the transfers referred to in Clause 3.4.1(1) for assessment of stamp duty,
      and
      shall promptly pay the duty assessed.

    

    
      	
              8.2

            	
              Announcements.

            

    

    

    The
      Vendors and the Purchaser shall not make any announcement to shareholders,
      employees, customers or suppliers, or to securities markets or other authorities
      or to the media or otherwise, regarding the subject-matter of this Agreement
      without reasonably first consulting with the other parties to this Agreement.
      Notwithstanding the foregoing, the Purchaser shall be permitted to describe
      and
      to file this Agreement and the Ancillary Agreements with the SEC to the extent
      required by law and Hibernia Capital Partners Limited shall be permitted to
      communicate the terms of this Agreement to the investors in the funds of which
      it is the investment manager upon Completion.

    

    
      	
              8.3

            	
              Waiver
                of Pre-emption Rights.
                

            

    

    

    The
      Vendors hereby waive all pre-emption rights to which they may be entitled under
      the Articles of Association of the Company or otherwise. 

    

    
      	
              8.4

            	
              Costs
                and Expenses.
                

            

    

    

    Each
      party to this Agreement will pay his own costs of and incidental to this
      Agreement and its implementation including without limitation their respective
      attorney’s and investment banker/broker fees, if any, incurred in connection
      with this Agreement. 

    

    
      	
              8.5

            	
              Severability.
                

            

    

    

    All
      the
      clauses restrictive of competition in this Agreement are distinct and severable,
      and if any clause is held unenforceable, illegal or void in whole or in part
      by
      any court, regulatory authority or other competent authority, it shall to that
      extent be deemed not to form part of this Agreement, and the enforceability,
      legality and validity of the remainder of this Agreement will not be
      affected.

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

     

    
      	
              8.6

            	
              Whole
                Agreement.
                

            

    

    

    This
      Agreement (together with any documents to be executed under Clause 3) and the
      Disclosure Letter supersede all prior representations, arrangements,
      understandings and agreements, and sets forth the entire, complete and exclusive
      agreement and understanding between the parties. So far as is permitted by
      law
      and except in the case of fraud, no party to this Agreement shall be liable
      whether in contract, tort or otherwise for any representation, warranty or
      assurance not set out in this Agreement and each party waives all remedies
      which
      otherwise might be available to it in respect thereof.

    

    
      	
              8.7

            	
              Survival.
                

            

    

    

    The
      provisions of this Agreement which have not been performed at Completion will
      remain in full force and effect notwithstanding Completion.

    

    
      	
              8.8

            	
              Notices.

            

    

    

    
      	
            	8.8.1	
              Any
                notice or other communication to be given or served under this Agreement
                shall be in writing, addressed to the relevant party and expressed
                to be a
                notice or communication under this Agreement and, without prejudice
                to the
                validity of another method of service, may be delivered or sent by
                pre-paid, registered, airmail, post or via telecopier, addressed
                as
                follows:

            

    

    

    
      	 	
              (i)

            	
              if
                to the Vendors to:

            

    

    

    BetaTHERM
      Group Ltd.

    Ballybrit
      Business Park

    Galway,
      Ireland

    Attention:
      Mr. Terrence Monaghan

    Telecopier:
      353-(0)91-769307

    

    And

    

    Hibernia
      Capital Partners, Ltd,

    Ground
      Floor

    Beech
      House

    Beech
      Hill Office Campus

    Dublin
      14

    Clonskeagh,
      Ireland

    Attention:
      David Gavagan

    Telecopier:
      353-(1) 20-57771

    

    With
      a
      copy (which shall not constitute notice) to

    

    Edward
      Miller, Esq. 

    Matheson
      Ormsby Prentice

    30
      Herbert St

    Dublin
      2

    Dublin,
      Ireland

    Telecopier:
      353 (1) 61-99010

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    

    
      	 	
              (ii)

            	
              if
                to the Purchaser:

            

    

    

    Measurement
      Specialties, Inc.

    1000
      Lucas Way

    Hampton,
      VA 23666

    Attention:
      Frank Guidone

    Telecopier:
      (575) 766-4347

    

    With
      a
      copy (which shall not constitute notice) to 

    

    McCarter
      & English, LLP

    Four
      Gateway Center

    100
      Mulberry Street

    Newark,
      New Jersey 07102

    Attention:
      Kenneth E. Thompson, Esq.

    Telecopier:
      (973) 624-7070

    

    or
      to
      such other address or telecopier number as the addressee may have previously
      substituted by notice.

    

    
      	
            	8.8.2	
              A
                notice or other communication will be deemed to have been duly served
                or
                given:

            

    

    

    
      	
            	(1)	
              in
                the case of delivery, at the time of
                delivery;

            

    

    

    
      	
            	(2)	
              in
                the case of posting, five days after posting (and proof that the
                envelope
                containing the notice or communication was properly addressed, will
                be
                sufficient evidence that the notice or other communication has been
                duly
                served or given); or

            

    

    

    
      	
            	(3)	
              in
                the case of telecopier, upon transmission, subject to the correct
                code or
                telecopier number being received on the transmission report and receipt
                by
                the addressee of the complete text in legible form
                

            

    

    

    
      	
            	(4)	
              in
                the case of delivery via overnight mail, the day following the day
                such
                notice or communication was sent

            

    

    

    but
      if a
      notice is given or served at business premises other than during usual business
      hours on a Business Day, it will be deemed to be given or served on the next
      following Business Day.

    

    
      	
            	8.8.3	
              A
                party giving or serving a notice or other communication hereunder
                by
                telecopier shall also give or serve a copy by post, but without prejudice
                to the validity and effectiveness of the service by
                telecopier.

            

    

     

     

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

     

    
      	
            	8.8.4	
              All
                notices or other communications shall be in the English
                language.

            

    

     

    
      	
              8.9

            	
              Service
                of Agent.
                

            

    

    

    Without
      prejudice to any other mode of service:

    

    
      	
            	8.9.1	
              the
                Purchaser irrevocably appoints Mr. Lorcan Tiernan of Dillon Eustace
                Solicitors, Dublin, Ireland as agent and, each of the Vendors hereby
                irrevocably appoints Edward Miller of the Vendors Solicitors as agent
                for
                service of process relating to any proceedings before the courts
                of
                Ireland in connection with this Agreement, and each party agrees
                to
                maintain as its agent the process agent in Ireland so notified hereby
                during the term of this Agreement and thereafter during such period
                as any
                action may be taken under it; and

            

    

    

    
      	
            	8.9.2	
              each
                party agrees that failure by a process agent to notify it of the
                process
                will not invalidate the proceedings
                concerned.

            

    

    

    
      	
              8.10

            	
              Disclosure
                Letter.
                

            

    

    

    
      	
            	8.10.1	
              The
                disclosures in the Disclosure Letter, and those in any supplement
                thereto,
                must relate only to the representations and warranties in the Clause
                of
                the Agreement to which they expressly relate and not to any other
                representation or warranty in this
                Agreement.

            

    

    

    
      	
            	8.10.2	
              In
                the event of any inconsistency between the statements in the body
                of this
                Agreement or the Schedules and those fairly and accurately disclosed
                in
                the Disclosure Letter with respect to a specifically identified
                representation or warranty, the statements in the body of this Agreement
                or Schedules will control.

            

    

    

    
      	
              8.11

            	
              Assignment/Third
                Party Beneficiaries.
                

            

    

    

    
      	
            	8.11.1	
              Subject
                to Clause 8.11.2, neither party may assign any of its rights under
                this
                Agreement without the prior consent of the other parties, which will
                not
                be unreasonably withheld, except that Purchaser may assign any of
                its
                rights under this Agreement to (i) any wholly owned subsidiary of
                Purchaser, or (ii) any lender and/or security-holder of the Purchaser.
                No
                such assignment shall relieve any party of its responsibilities under
                this
                Agreement and, without prejudice to the generality of the foregoing,
                Purchaser shall not assign its obligations under Clause 2.2 without
                the
                written consent of the Vendors
                Representative.

            

    

    

    
      	
            	8.11.2	
              The
                Parties hereby expressly agree that the Purchaser shall be entitled
                to
                assign any of its rights under this Agreement to any party purchasing
                the
                entire issued share capital of the Company from the Purchaser and
                to any
                party that acquires all the assets of the Company as at Completion
                from
                the Purchaser.

            

    

     

     

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

     

    
      	
            	8.11.3	
              Subject
                to subclauses 8.11.1 and 8.11.2 respectively, this Agreement will
                apply
                to, be binding in all respects upon, and inure to the benefit of
                the
                successors and permitted assigns of the parties. Nothing expressed
                or
                referred to in this Agreement will be construed to give any Person
                other
                than the parties to this Agreement any legal or equitable right,
                remedy,
                or claim under or with respect to this Agreement or any provision
                of this
                Agreement. This Agreement and all of its provisions and conditions
                are for
                the sole and exclusive benefit of the parties to this Agreement and
                their
                successors and assigns. 

            

    

    

    
      	
            	8.11.4	
              For
                the avoidance of doubt where the Purchaser has assigned the benefit
                in
                whole or in part of this Agreement, then the liability of the Covenantors
                shall be limited to that amount that would have been due had no such
                assignment taken place.

            

    

    

    
      	
              8.12

            	
              Governing
                Law.

            

    

    

    This
      Agreement and all relationships created by it will in all respects be governed
      by and construed in accordance with Irish law.

    

    
      	
              8.13

            	
              Jurisdiction.

            

    

    

    
      	
            	8.13.1	
              It
                is irrevocably agreed that the Irish courts are to have exclusive
                jurisdiction to settle any disputes which may arise out of or in
                connection with this Agreement or its performance and accordingly
                that any
                suit, action or proceedings so arising may be brought in such
                courts.

            

    

    

    
      	
            	8.13.2	
              The
                Purchaser irrevocably waives (and irrevocably agrees not to raise)
                any
                objection which it may have now or subsequently to the laying of
                the venue
                of any proceedings in any such court as is referred to in this Clause
                8.13
                and any claim that any such proceedings have been brought in an
                inconvenient forum and further irrevocably agrees that a judgement
                in any
                proceedings brought in any such court as is referred to in this Clause
                8.13 will be conclusive and binding upon the
                Purchaser and
                may be enforced in the courts of any other
                jurisdiction.

            

    

    

    
      	
              8.14

            	
              Cooperation

            

    

    

    From
      time
      to time following the date hereof, Vendors and Purchaser shall, and shall cause
      their respective Affiliates to, execute, acknowledge and deliver all such
      further conveyances, notices, assumptions, releases and acquittances and such
      other instruments, and shall take such further actions, as may be necessary
      or
      appropriate to assure fully to Purchaser and its respective successors or
      assigns, all of the properties, rights, titles, interests, estates, remedies,
      powers and privileges intended to be conveyed to Purchaser under this Agreement
      and the Ancillary Agreements and to assure fully to Vendors and their successors
      and assigns, the obligations of Purchaser under this Agreement and the Ancillary
      Agreements, and to otherwise make effective the transactions contemplated hereby
      and thereby.

     

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    

    
      	
              8.15

            	
              Counterparts

            

    

    

    
      	 	
              (a)

            	
              This
                Agreement may be executed in writing simultaneously and by one or
                more
                counterparts, each of which shall be deemed an original, but all
                of which
                together shall constitute one and the same agreement, which shall
                be
                sufficiently evidenced by any one of such original
                counterparts.

            

    

    

    
      	 	
              (b)

            	
              For
                the purpose of this clause “writing” shall mean written signature or
                signature produced or substituted for such written signature and
                shall be
                deemed to include a signature sent by facsimile or by other electronic
                means. 

            

    

    

    
      	
              8.16

            	
              Repayment
                of Transaction Costs

            

    

    

    Within
      14
      days following the Completion Date, the Vendors shall pay to the Acquired
      Companies the amount of $56,000. 

    

    
 

    IN
      WITNESS
      whereof
      this Agreement has been entered into the date and year first herein
      written.

    

     

    MEASUREMENT
      SPECIALTIES, INC.

     

     

    By:______________________________________

    Name:  Frank
      Guidone

    Title: 
      Chief Executive Officer

     

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    FIRST
      SCHEDULE

    Parties,

    recs.
      A
& B

    &
cl.
      2.1

    

    The
      Company and the Vendors

    

    BetaTHERM
      Group Ltd. Registered in Ireland no. 325019

    Capital
      at the Completion Date: €12, 720, 097.40 divided into 5,000,000 A ordinary
      shares of €1.26974 each, 5,000,000 B ordinary shares of €1.26974 each, 100,000 C
      ordinary shares of €0.126974 each, and 10,000 D ordinary shares of €1 each.

    

    List
      of
      the Company’s Key Employees to execute Employment Agreements:

    

    (1)
      Stephen Meagher; 

    (2)
      Thomas O’Brien; 

    (3)
      Terence Monaghan; and

    (4)
      Herbert Holmstedt

     

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    

    BETATHERM

    FIRST
      SCHEDULE TABLE

    

    
      	
              1

            	
              2

            	
              3

            
	
              Name
                of Vendor

            	
              Vendor
                Address

            	
              No.
                and Class of Shares in the Company

            
	
              Management
                Vendors:

            	 	 
	
              Terence
                Monaghan

            	
              Cregg,
                Oughterard, Co Galway

            	
              1,747,308
                - A ordinary shares, 50,000 C ordinary shares and 2 D ordinary
                shares

            
	
              Thomas
                O’Brien

            	
              Clonmore
                House, Lowville, Ahascragh, Ballinasloe, Co Galway

            	
              349,462
                - A ordinary shares

            
	
              Bill
                Sex

            	
              59
                Hunting Avenue, Shrewsbury, MA 01545

            	
              305,779
                - A ordinary shares

            
	
              Kieran
                Garvey

            	
              Lakeview,
                Claregalway, Co Galway

            	
              43,683
                - A ordinary shares

            
	
              Shaun
                Morgan

            	
              Cregcarragh,
                Cregmore, Claregalway, Co Galway

            	
              104,865
                - A ordinary shares

            
	
              Blanaid
                Ryan

            	
              Coolree
                Lodge, Coolree, Prosperous, Co Kildare

            	
              40,000
                - A ordinary shares

            
	
              Bill
                Howard

            	
              54
                Sewell Street, Shrewsbury, MA 01545

            	
              40,000
                - A ordinary shares

            
	
              Joe
                Gleeson

            	
              Apt
                4, Maunsells House (No. 9), Maunsells Road, Galway

            	
              17,500
                - A ordinary shares

            
	
              Hugh
                McGovern

            	
              Ballinaboy,
                Leitrim P.O., Carrick on Shannon, Co Leitrim

            	
              17,500
                - A ordinary shares

            
	
              Noel
                Burke

            	
              Collmeen,
                Mayo Abbey, Claremorris, Co Mayo

            	
              17,500
                - A ordinary shares

            
	
              Clair
                Cloherty

            	
              65
                Riasc Na Ri, Old Rahoon Road, Galway

            	
              9,905
                - A ordinary shares

            
	
              Claus
                Gesslinger

            	
              76A
                Hillside Ave, Rehoboth, MA 02769

            	
              17,500
                - A ordinary shares

            
	
              Anthony
                Dennehy

            	
              Dennehy’s
                Centra, West End, Millstreet, Co Cork

            	
              262,096
                - A ordinary shares

            
	
              Tara
                Smolenski

            	
              15
                Chino Ave, Worcester, MA 01605

            	
              43,683
                - A ordinary shares

            
	
              Doug
                Helie

            	
              21
                Chamock Hill Rd, Rutland, MA 01543

            	
              43,683
                - A ordinary shares

            
	
              Kevin
                Moran

            	
              Kevre
                House, Lakeview, Claregalway, Co Galway

            	
              83,324
                - A ordinary shares

            
	
              Susan
                Killeen

            	
              59
                River Oaks, Claregalway, Co Galway

            	
              43,683
                - A ordinary shares

            
	
              Jude
                Neylon

            	
              Main
                Street, Corofin, Co Clare

            	
              131,048
                - A ordinary shares

            
	
              Patrick
                Lyons

            	
              Castleturley,
                Aghamore, Ballyhaunis, Co Mayo

            	
              87,365
                - A ordinary shares

            
	
              Stephen
                Meagher

            	
              5
                Aughnacurra, Lower Dangan, Galway

            	
              394,512
                - A ordinary shares

            
	
              Stephen
                Keenan

            	
              71
                Clybaun Heights, Knocknacarra, Co Galway

            	
              87,365
                - A ordinary shares

            
	
              Herb
                Holmstedt

            	
              8
                Angell Ave, Cranston, RI 02920

            	
              262,096
                - A ordinary shares

            
	
              Aidan
                Nulty

            	
              114
                Scelig Ard, Headford Road, Galway

            	
              87,366
                - A ordinary shares

            
	
              Siobhan
                Boyle

            	
              43
                Clochog, Oranmore, Co Galway

            	
              43,683
                - A ordinary shares

            
	
              Bill
                Macuga

            	
              32
                Cross Street, Uxbridge, MA 01569

            	
              43,683
                - A ordinary shares

            
	
              Gerry
                Savage

            	
              Berowra,
                Corrandulla, Co Galway

            	
              43,683
                - A ordinary shares

            
	
              Non-Management
                Vendors

            	 	 
	
              State
                Street International Custodial Services

            	
              Guild
                House

              Guild
                Street

              IFSC

              Dublin
                1.

            	
              4,368,271
                - B ordinary shares

            
	
              David
                Chapman

            	
              c/o
                David Gavagan, Hibernia Capital Partners, Beech House, Beech Hill
                Office
                Campus, Clonskeagh, Dublin 6

            	
              87,365
                - B ordinary shares

            
	
              Gary
                Duffy

            	
              2
                Eastgate, Little Island, Co Cork

            	
              49,405
                - B ordinary shares

            

    

    

    
      
        

      

    

    
      	*	
              (State
                Street are nominees of Hibernia Capital
                Partners).

            

    

     

     

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    

    SECOND
      SCHEDULE

    

    Subsidiaries

    cl.
      1.1

    
      	
              Name

            	
              Jurisdiction
                of Incorporation

            	
              Status

            
	
              BetaTHERM
                Holding Limited

            	
              Ireland

            	
              Private
                limited company

            
	
              BetaTHERM
                Trading Limited

            	
              Ireland

            	
              Private
                limited company

            
	
              CEM
                Barbados

            	
              Barbados

            	
              Barbados
                Company

            
	
              LAJOY

            	
              Ireland

            	
              Private
                unlimited company

            
	
              BetaTHERM
                R&D Limited

            	
              Ireland

            	
              Private
                limited company

            
	
              BetaTHERM
                Systems Limited

            	
              Ireland

            	
              Private
                limited company

            
	
              Beta-Therm
                Corporation

            	
              Massachusetts
                (US)

            	
              Massachusetts
                Corporation

            
	
              BetaTHERM
                Ireland

            	
              Ireland

            	
              Private
                limited company

            
	
              BetaTHERM
                Automotive Sensors Limited

            	
              Ireland

            	
              Private
                limited company

            

    

    

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    THIRD
      SCHEDULE

    

    Directors

    cl.
      1.1

    
      	
              Name
                of Director

            	
              Company/ies

            
	
              Terence
                Monaghan

            	
              BetaTHERM
                Group Limited

            
	
              Stephen
                Meagher

            	
              BetaTHERM
                Group Limited

            
	
              David
                Gavagan

            	
              BetaTHERM
                Group Limited

            
	
              Gary
                Duffy

            	
              BetaTHERM
                Group Limited

            
	
              Anthony
                Dennehy

            	
              BetaTHERM
                Group Limited

            
	
              Barrie
                Daish

            	
              BetaTHERM
                Group Limited

            
	 	 
	
              Terence
                Monaghan

            	
              BetaTHERM
                Holdings Limited

            
	
              Stephen
                Meagher

            	
              BetaTHERM
                Holdings Limited

            
	
              David
                Gavagan

            	
              BetaTHERM
                Holdings Limited

            
	
              Gary
                Duffy

            	
              BetaTHERM
                Holdings Limited

            
	
              Barrie
                Daish

            	
              BetaTHERM
                Holdings Limited

            
	
              Brian
                O’Keefe

            	
              BetaTHERM
                Holdings Limited

            
	 	 
	
              Terence
                Monaghan

            	
              BetaTHERM
                Trading Limited

            
	
              Stephen
                Meagher

            	
              BetaTHERM
                Trading Limited

            
	
              David
                Gavagan

            	
              BetaTHERM
                Trading Limited

            
	
              Gary
                Duffy

            	
              BetaTHERM
                Trading Limited

            
	
              Barrie
                Daish

            	
              BetaTHERM
                Trading Limited

            
	 	 
	
              Terence
                Monaghan

            	
              LAJOY
                Limited

            
	
              Stephen
                Meagher

            	
              LAJOY
                Limited

            
	
              David
                Gavagan

            	
              LAJOY
                Limited

            
	
              Barrie
                Daish

            	
              LAJOY
                Limited

            
	 	 
	
              Terence
                Monaghan

            	
              BetaTHERM
                Research & Development Limited

            
	
              Stephen
                Meagher

            	
              BetaTHERM
                Research & Development Limited

            
	
              David
                Gavagan

            	
              BetaTHERM
                Research & Development Limited

            
	
              Barrie
                Daish

            	
              BetaTHERM
                Research & Development Limited

            
	 	 
	
              Terence
                Monaghan

            	
              BetaTHERM
                Systems Limited

            
	
              Stephen
                Meagher

            	
              BetaTHERM
                Systems Limited

            
	
              David
                Gavagan

            	
              BetaTHERM
                Systems Limited

            
	
              Barrie
                Daish

            	
              BetaTHERM
                Systems Limited

            
	 	 
	
              Terence
                Monaghan

            	
              Caribbean
                Electronics Manufacturing (1992) Limited

            
	
              Stephen
                Meagher

            	
              Caribbean
                Electronics Manufacturing (1992) Limited

            
	
              David
                Gavagan

            	
              Caribbean
                Electronics Manufacturing (1992) Limited

            
	 	 
	
              Terence
                Monaghan

            	
              BetaTHERM
                Ireland Limited

            
	
              Stephen
                Meagher

            	
              BetaTHERM
                Ireland Limited

            
	
              David
                Gavagan

            	
              BetaTHERM
                Ireland Limited

            
	
              Barrie
                Daish

            	
              BetaTHERM
                Ireland Limited

            
	 	 
	
              Terence
                Monaghan

            	
              BetaTHERM
                Corporation

            
	
              Stephen
                Meagher

            	
              BetaTHERM
                Corporation

            
	
              David
                Gavagan

            	
              BetaTHERM
                Corporation

            
	 	 
	
              Terence
                Monaghan

            	
              BetaTHERM
                Automotive Sensors Limited

            
	
              Stephen
                Meagher

            	
              BetaTHERM
                Automotive Sensors Limited

            
	
              David
                Gavagan

            	
              BetaTHERM
                Automotive Sensors Limited

            
	
              Barrie
                Daish

            	
              BetaTHERM
                Automotive Sensors Limited

            

    

    

    

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

     

    FOURTH
      SCHEDULE

    

    Warranties

    cls.
      1.1
& 4.1

    

    

    
      	
            	4.1	
              ORGANISATION
                AND GOOD STANDING. 

            

    

    

    
      	 	
              (a)

            	
              Part
                4.1 of the Disclosure Letter contains a complete and accurate list
                for
                each Acquired Company of its name, its jurisdiction of incorporation,
                other jurisdictions in which it is authorised to do business, and
                its
                capitalisation (including the identity of each stockholder and the
                number
                of shares held by each). Each Acquired Company is a corporation duly
                organised and validly existing under the laws of its jurisdiction
                of
                incorporation, with full corporate power and authority to conduct
                its
                business as it is now being conducted, to own or use the properties
                and
                assets that it purports to own or use, and to perform all its obligations
                under Applicable Contracts. Each Acquired Company is duly qualified
                to do
                business as a foreign corporation under the laws of each state or
                other
                jurisdiction in which either the ownership or use of the properties
                owned
                or used by it, or the nature of the activities conducted by it, requires
                such qualification.

            

    

    

    
      
        
          	
                	(b)	
                  Vendors
                    have delivered to Purchaser copies of the Organisational Documents
                    of each
                    Acquired Company, as currently in
                    effect.

                

        

      

    

    

    
      	
            	(c)	
              The
                information and contents of the documentation listed or referenced
                in the
                Disclosure Letter (other than contracts, as to which the Vendors
                make only
                the Representations and Warranties contained in Clause 4.19 of this
                Fourth
                Schedule) and any Schedules to the Agreement are true and accurate
                in all
                respects and where such information or the contents of such documentation
                comprise or include statements of opinion by the Vendors such statements
                of opinion are honestly held.

            

    

     

    
      	
            	4.2	
              AUTHORITY;
                NO CONFLICT.

            

    

    

    
      	
            	(a)	
              This
                Agreement constitutes the legal, valid, and binding obligation of
                Vendors,
                enforceable against Vendors in accordance with its terms, subject
                to the
                laws of general application relating to bankruptcy, insolvency and
                the
                relief of debtors and to the rules governing specific performance,
                injunctive relief or other equitable remedies. Upon the execution
                and
                delivery by Vendors of the Vendor Releases (collectively, the "Ancillary
                Agreements"), the Ancillary Agreements will constitute the legal,
                valid,
                and binding obligations of Vendors, enforceable against Vendors in
                accordance with their respective terms, subject to the laws of general
                application relating to bankruptcy, insolvency and the relief of
                debtors
                and to the rules governing specific performance, injunctive relief
                or
                other equitable remedies. Vendors have the requisite power, authority,
                and
                capacity to execute and deliver this Agreement and the Ancillary
                Agreements and to perform their obligations under this Agreement
                and the
                Ancillary Agreements.

            

    

     

     

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

     

    
      	
            	(b)	
              Except
                as set forth in Part 4.2 of the Disclosure Letter, neither the execution
                and delivery of this Agreement nor the consummation or performance
                of any
                of the Contemplated Transactions will, directly or indirectly (with
                or
                without notice or lapse of time):

            

    

    

    
      	 	
              (i)

            	
              contravene,
                conflict with, or result in a violation of (A) any provision of the
                Organisational Documents of the Acquired Companies, or (B) any resolution
                adopted by the board of directors or the stockholders of any Acquired
                Company;

            

    

    

    
      	 	
              (ii)

            	
              contravene,
                conflict with, or result in a violation of, or give any Governmental
                Body
                or other Person the right to challenge any of the Contemplated
                Transactions or to exercise any remedy or obtain any relief under,
                any
                Legal Requirement or any Order to which any Acquired Company or Vendor,
                or
                any of the assets owned or used by any Acquired Company, may be
                subject;

            

    

    

    
      	 	
              (iii)

            	
              contravene,
                conflict with, or result in a violation of any of the terms or
                requirements of, or give any Governmental Body the right to revoke,
                withdraw, suspend, cancel, terminate, or modify, any Governmental
                Authorisation that is held by any Acquired Company or that otherwise
                relates to the business of, or any of the assets owned or used by,
                any
                Acquired Company;

            

    

    

    
      	 	
              (iv)

            	
              cause
                any of the assets owned by any Acquired Company to be reassessed
                or
                revalued by any Taxation Authority or other Governmental
                Body;

            

    

    

    
      	 	
              (v)

            	
              contravene,
                conflict with, or result in a violation or breach of any provision
                of, or
                give any Person the right to declare a default or exercise any remedy
                under, or to accelerate the maturity or performance of, or to cancel,
                terminate, or modify, any Applicable Contract;
                or

            

    

    

    
      	 	
              (vi)

            	
              result
                in the imposition or creation of any Encumbrance upon or with respect
                to
                any of the assets owned or used by any Acquired Company;
                

            

    

    

    
      	 	
              (vii)

            	
              except
                as set forth in Part 4.2 of the Disclosure Letter, no Vendor or Acquired
                Company is or will be required to give any notice to or obtain any
                Consent
                from any Person in connection with the execution and delivery of
                this
                Agreement or the consummation or performance of any of the Contemplated
                Transactions;

            

    

     

     

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

     

    
      	
            	4.3	
              CAPITALIZATION.

            

    

    

    
      	
            	(a)	
              Company.
                The authorised share capital of the Company is €12,720,097.40, composed of
                €12, 720, 097.40 divided into 5,000,000 A ordinary shares of €1.26974
                each, 5,000,000 B ordinary shares of €1.26974 each, 100,000 C ordinary
                shares of €0.126974 each, and 10,000 D ordinary shares of €1 each and the
                issued share capital of the Company is €11,273,151,15 composed of
                €11,273,151.15 divided into 4,368,272 A ordinary shares of €1.26974 each,
                4,505,041 B ordinary shares of €1.26974 each, 50,000 C ordinary shares of
                €0.126974 each and 2 D ordinary shares of €1. All of such issued and
                outstanding shares have been validly issued and are fully paid and
                were
                not issued in violation of any pre-emptive rights. There are no rights,
                agreements or commitments obligating the Company to issue any additional
                shares or any other securities convertible into, exchangeable for
                or
                evidencing the right to subscribe for any shares of the Company.
                

            

    

    

    
      	
            	(b)	
              The
                Shares.
                

            

    

    

    
      	 	
              (i)

            	
              The
                Vendors are the sole legal and beneficial owners of the Shares set
                opposite their names in the First Schedule. 

            

    

    

    
      	 	
              (ii)

            	
              The
                Shares comprise the whole of the allotted and issued share capital
                of the
                Company. There are no shares issued or allotted in any Acquired Company
                which are not legally and beneficially owned by the Vendors, the
                Company
                or another Acquired Company.

            

    

    

    
      	 	
              (iii)

            	
              The
                Shares are fully paid up or credited as fully paid up.
                

            

    

    

    
      	
            	(iv)	
              There
                is no Encumbrance, nor is there any agreement, arrangement or obligation
                to create or give any Encumbrance, on, over or affecting any of the
                Shares
                or any issued or unissued shares of any Acquired Company and no claim
                has
                been made by any person to be entitled to any such
                Encumbrance.

            

    

    

    
      	
            	(v)	
              Save
                as provided in this Agreement:

            

    

    

    
      	
            	(a)	
              there
                is no agreement, arrangement or obligation in force which calls for
                the
                present or future allotment, issue or transfer of, or the grant to
                any
                person of the right (whether conditional or otherwise) to call for
                the
                allotment, issue or transfer of, any share or loan capital of any
                Acquired
                Company (including, without limitation, any option or right of pre-emption
                or conversion in any Acquired
                Company);

            

    

    

    
      	
            	(b)	
              no
                share or loan capital has been created, allotted, issued, acquired,
                repaid
                or redeemed, or agreed to be created, allotted, issued, acquired,
                repaid
                or redeemed, by any Acquired Company since 30 June 2005 of the Acquired
                Companies; and

            

    

     

     

    
      
         

      

      
        48

        
          

        

      

      
         

      

    

     

    
      	
            	(c)	
              all
                rights attaching to the Shares are valid and enforceable by action
                or
                legal proceeding or otherwise.

            

    

    

    
      	
            	(d)	
              Subsidiaries
                and Other Equity Investments.
                Except as set forth in the Part 4.3 of the Disclosure Letter, the
                Company
                does not own, directly or indirectly, any shares of any corporation
                or any
                equity investment in any partnership, association or other business
                organisation. With respect to each Subsidiary that is an issuer of
                any
                shares owned of record by the Company or its Subsidiaries, Part 4.3
                of the
                Disclosure Letter sets forth a true and complete list of its name
                and
                jurisdiction of incorporation. Except as set forth in the Part 4.3
                of the
                Disclosure Letter, neither the Company nor any Subsidiary is a party
                to or
                bound by any contract or agreement to issue or sell or redeem, purchase
                or
                otherwise acquire any shares or any other security of any Subsidiary
                or
                any other security exercisable or exchangeable for or convertible
                into any
                shares or any other security of any Subsidiary, and there is no
                outstanding option, warrant, contract, agreement or arrangement to
                purchase any shares or any other security of any Subsidiary or any
                other
                security exercisable or convertible into any shares or any other
                security
                of any Subsidiary.

            

    

    

    
      	
            	(e)	
              Subsidiaries,
                Associates and Branches

            

    

    

    
      	 	
              (i)

            	
              The
                Company does not have any subsidiary or subsidiary undertaking other
                than
                the Subsidiaries and no Acquired Company has any interest in, and
                has not
                agreed to acquire any interest in, any shares of any other bodies
                corporate other than the Subsidiaries. 

            

    

    

    
      	 	
              (ii)

            	
              The
                shares in the share capital of the Subsidiaries are legally and
                beneficially owned as shown in the Second Schedule free from all
                Encumbrances and are fully paid up or credited as fully paid
                up.

            

    

    

    
      	 	
              (iii)

            	
              No
                Acquired Company has outside Ireland any branch, agency or place
                of
                business, or any permanent establishment (as that expression is defined
                in
                the relevant double taxation relief orders current at the date of
                this
                Agreement).

            

    

    

    
      	 	
              (iv)

            	
              No
                Acquired Company has, or has had, any associated undertaking within
                the
                meaning of the European Communities (Companies: Group Accounts)
                Regulations, 1992.

            

    

     

     

    
      
         

      

      
        49

        
          

        

      

      
         

      

    

     

    
      	 	
              (v)

            	
              No
                Acquired Company has any liability (actual, contingent or otherwise)
                in
                respect of any company or other entity which was formerly a subsidiary
                of
                any Acquired Company.

            

    

     

    
      	
            	4.4	
              FINANCIAL
                STATEMENTS. 

            

    

    

    
      	 	
              (i)

            	
              Vendors
                have delivered to Purchaser: (a) audited consolidated balance sheets
                of
                the acquired companies as at June 30 in each of the years 2004 and
                2005,
                and the related audited consolidated statements of income, changes
                in
                shareholders' equity, and cash flow for each of the fiscal years
                then
                ended, together with the report thereon of Ernst &Young (“Financial
                Statements”). Such Financial Statements and notes have been prepared in
                accordance with the applicable law, standards and practices on a
                basis
                consistent throughout the periods involved and in accordance with
                GAAP.
                The Financial Statements give a true and fair view of the state of
                affairs
                of the Acquired Companies as of their date and profits or losses
                for the
                periods concerned. The Vendors have also delivered to the Purchasers
                an
                unaudited consolidated balance sheet of the Acquired Companies as
                at 24
                February, 2006 (the “Interim Balance Sheet”) and the related unaudited
                consolidated statements of income, changes in the stockholders equity
                and
                cash flow for the 8 months then ended, such financial statements
                and notes
                have been prepared on a basis consistent and adopted on the same
                assumptions as those made in preparing previous management accounts
                for
                the Company and show a reasonably accurate view of the statement
                of
                affairs and profit and loss of the Acquired Companies as at the period
                in
                respect of which they have been prepared subject to normal year end
                adjustments.

            

    

     

    
      	
            	4.5	
              BOOKS
                AND RECORDS. 

            

    

    

    
      	
            	(i)	
              Constitution

            

    

    

    Each
      Acquired Company has at all times carried on its business and affairs in all
      material respects in accordance with its memorandum and articles of association
      or other relevant organisational and governance document for the time being
      and
      the copy of the memorandum and articles of association or other relevant
      organisational and governance document of each of the Acquired Companies
      delivered by the Vendors to the Purchaser is true and complete and, in the
      case
      of such memorandum and articles of association, has embodied therein or annexed
      thereto a copy of every such resolution as is referred to in sections 143(2)
      of
      the Companies Act, 1963.

    

    Registers,
      minute books and statutory books

    

    All
      registers, minute books and other statutory books required to be kept by each
      Acquired Company pursuant to the Companies Acts, 1963 to 2005 have been properly
      kept, contain a true, complete and accurate record of the matters with which
      they should deal and no notice or allegation has been received that any of
      them
      is incorrect or should be rectified.

     

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    

    Other
      Records

    

    (a)
       Each
      Acquired Company has maintained appropriate records of its activities including
      all requisite books of account (reflecting in accordance with generally accepted
      accounting principles such the financial transactions of such Acquired Company
      or to which it has been a party that are required to be so recorded), minute
      books, registers and records, all of which are up-to-date, complete and accurate
      in all respects and these and all other deeds and documents (properly stamped
      where necessary) belonging to such Acquired Company and its seals are and at
      Completion will be in the possession of such Acquired Company.

    

    (b)
       No
      Acquired Company has or will, pending Completion, have any of its records,
      systems, controls, data or information recorded, stored, maintained, operated
      or
      otherwise dependent upon or held by any means (including any electronic,
      mechanical or photographic process, whether computerised or not) which
      (including all means of access thereto and therefrom and use thereof) are not
      under the exclusive ownership and direct control of the relevant Acquired
      Company.

    

    (c)
       There
      has
      been no breach of any service or maintenance contract relevant to any such
      electronic, mechanical or photographic process or equipment of or used by any
      Acquired Company whereby any person or body providing services or maintenance
      thereunder may have the right to terminate such service or maintenance
      contract.

    

    Returns

    

    All
      returns, particulars, resolutions and other documents required to be delivered
      by each Acquired Company to the Companies Registration Office including, without
      limitation, in respect of all charges granted by any Acquired Company, relevant
      companies registers or any governmental authority have been in all material
      aspects properly and correctly prepared and so delivered.

    

    Powers
      of attorney and authorities

    

    There
      is
      no power of attorney given by any Acquired Company in force and no outstanding
      authority by which any person may enter into any agreement, arrangement or
      obligation to do anything on behalf of any Acquired Company (other than any
      authority of its employees and directors to enter into agreements in the
      Ordinary Course of Business).

    

    Compliance
      with 1990 Act

    

    None
      of
      the Acquired Companies;

     

    
      
         

      

      
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            	(a)	
              has,
                to the Vendors’ Knowledge, had its affairs investigated pursuant to
                section 7, 8 or 9 of the 1990 Act, nor has there been any investigation
                of
                the ownership of the shares of any of the Acquired Companies pursuant
                to
                section 14 or request pursuant to section 15 of the 1990 Act, nor
                has
                there been a direction made under section 16 of the 1990 Act nor
                an
                investigation pursuant to section 66 of the 1990
                Act;

            

    

    

    
      	
            	(b)	
              has
                entered into any arrangement in breach of section 28 or 29 of the
                1990
                Act;

            

    

    

    
      	
            	(c)	
              has
                made any loans or quasi-loans (within the meaning of section 25 of
                the
                1990 Act), entered into any credit transactions as creditor or entered
                into any guarantee or indemnity or provided any security in connection
                with a loan, quasi-loan or credit transaction in breach of section
                31 of
                the 1990 Act;

            

    

    

    
      	
            	(d)	
              is
                or has been related to any other company for the purpose of section
                140 of
                the 1990 Act and is not and will not at any time be liable to be
                subject
                to an order made under that section by virtue of any act (whether
                of
                commission or omission) that occurred prior to
                Completion;

            

    

    

    
      	
            	(e)	
              has
                had a notice served on it by its auditors pursuant to section 185
                or 194
                of the 1990 Act;

            

    

    

    
      	
            	(f)	
              has
                been struck off and subsequently restored to the register pursuant
                to
                section 311A of the 1963 Act;

            

    

    

    
      	
            	(g)	
              has
                entered into any transaction or arrangement particulars whereof would,
                pursuant to section 41 of the 1990 Act, require to be contained in
                the
                accounts; or

            

    

    

    
      	
            	(h)	
              has
                purchased or redeemed its own shares or those of its holding company
                or
                created treasury shares pursuant to part XI of the 1990
                Act.

            

    

     

    
      	
            	4.6	
              TITLE
                TO PROPERTIES; ENCUMBRANCES. Part
                4.6
                of
                the Disclosure Letter contains an accurate list of all real property,
                leaseholds, or other tangible assets owned or held by any Acquired
                Company
                at 24 February, 2006. The Acquired Companies legally and beneficially
                own
                (with good and marketable title in the case of real property) all
                the
                properties and assets (whether real, personal, or mixed and whether
                tangible or intangible) that they purport to legally and beneficially
                own,
                including all of the properties and assets reflected in the Balance
                Sheet
                and the Interim Balance Sheet (except for property and assets sold
                since
                the date of the Balance Sheet and the Interim Balance Sheet, as the
                case
                may be, in the Ordinary Course of Business), and all of the properties
                and
                assets purchased or otherwise acquired by the Acquired Companies
                since the
                date of the Balance Sheet (except for personal property acquired
                and sold
                since the date of the Balance Sheet in the Ordinary Course of Business).
                All material properties and assets reflected in the Balance Sheet
                and the
                Interim Balance Sheet are free and clear of all Encumbrances, except
                as
                disclosed in Part 4.6 of the Disclosure Letter. The Acquired Companies
                hold valid and binding lease or license agreements for all property
                and
                assets which are used in and material to the operation of the Acquired
                Companies and which is not owned by the Acquired Companies. No Acquired
                Company is a party to, or has any material liability under, any lease
                or
                hire, hire purchase, credit sale or conditional sale
                agreement.

            

    

     

     

    
      
         

      

      
        52

        
          

        

      

      
         

      

    

     

    
      	
            	4.7	
              CONDITION
                AND SUFFICIENCY OF ASSETS. 

            

    

    

    The
      buildings, plants, and structures of the Acquired Companies are, to the Vendors
      Knowledge, structurally sound, and the property and equipment of the Acquired
      Companies are in good operating condition and repair, and are adequate for
      the
      uses to which they are being put, and none of such buildings, plants,
      structures, or equipment is in need of maintenance or repairs except for
      ordinary, routine maintenance and repairs that are not material in nature or
      cost. The building, plants, structures, and equipment of the Acquired Companies
      are sufficient for the continued conduct of the Acquired Companies' businesses
      after the Completion in substantially the same manner as conducted prior to
      the
      Completion.

    

    
      	
            	4.8	
              ACCOUNTS
                RECEIVABLE. Part
                4.8 of the Disclosure Letter contains a complete and accurate list
                of
                accounts receivable ("Accounts
                Receivable")
                of the Acquired Companies as of 24
                February,
                2006
                and
                sets forth the aging of such Accounts Receivable. All Accounts Receivable
                that are reflected on the Balance Sheet, Interim Balance Sheet or
                on the
                accounting records of the Acquired Companies as of the Completion
                Date
                represent or will represent valid obligations arising from sales
                actually
                made or services actually performed in the Ordinary Course of Business.
                Unless paid prior to the Completion Date, and except as disclosed
                in Part
                4.8 of the Disclosure Letter, the Accounts Receivable are or will
                be as of
                the Completion Date current and collectible net of the respective
                reserves
                after debtor financing shown on the Balance Sheet, Interim Balance
                Sheet
                or on the accounting records of the Acquired Companies as of the
                Completion Date (which reserves to the knowledge of the Vendors are
                adequate and calculated consistent with past
                practice).

            

    

    

    
      	 	
              4.9

            	
              INVENTORY.
                All
                inventories of the Acquired Companies are useable or saleable in
                the
                Ordinary Course of Business with
                in one year of the date hereof (based on historical sales and currently
                forecast demand), except for obsolete items and items of below-standard
                quality, all of which have been written off or written down to net
                realizable value in the Financial Statements of the Company.

            

    

    

    
      	
            	4.10	
              INDEBTEDNESS.
                

            

    

    

    (i) Indebtedness

     

    
      
         

      

      
        53

        
          

        

      

      
         

      

    

    

    Except
      as
      disclosed in the accounts of the Acquired Companies or in the Disclosure Letter,
      no Acquired Company has outstanding or agreed to create or incur any loan
      capital, borrowing or indebtedness in the nature of borrowing, including,
      without limitation, any bank overdrafts, liabilities under acceptances or
      acceptance credits.

    

    (ii) Guarantees
      and indemnities

    

    (a) No
      Acquired Company is a party to or has any material liability (including, without
      limitation, any contingent liability) under any guarantee, indemnity, bond,
      facility or other agreement to secure, or otherwise incur financial or other
      obligations with respect to, an obligation of a third party.

    

    (b) None
      of
      the loan capital, borrowings or indebtedness in the nature of borrowing of
      any
      Acquired Company is dependent on the guarantee or indemnity of, or any security
      provided by, a third party (including another Acquired Company). 

    

    (iii) Events
      of
      default

    

    
      	 	 	
              No
                event has occurred or, to the Vendors’ Knowledge, been alleged
                which:

            

    

    

    (a)
       constitutes
      an event of default, or otherwise gives rise to an obligation to repay, under
      any agreement relating to borrowing or indebtedness in the nature of borrowing
      or which would lead to any Encumbrance constituted or created in connection
      with
      any borrowing or indebtedness in the nature of borrowing, guarantee or
      indemnity, or which would lead to any other obligation of any Acquired Company,
      becoming enforceable;

    

    (b) would
      constitute such an event of default or would lead to such security or obligation
      becoming enforceable with the giving of notice or lapse of time or both;
      or

    

    (c) would,
      or
      would be likely to, give rise to an obligation for any Acquired Company to
      repay
      any monetary compensatory amounts, export refunds, intervention payments or
      other like subsidies.

    

    (iv)
      Grants

    

    (a) No
      Acquired Company is under any liability to repay any investment or other grant
      or subsidy made to it by any body; no circumstances have arisen in which any
      such body would or might be entitled to require repayment of, or refuse an
      application by any Acquired Company for, any such grant or subsidy either in
      whole or in part and neither the execution nor performance of this Agreement
      will constitute such circumstances.

     

    
      
         

      

      
        54

        
          

        

      

      
         

      

    

    

    (b) Full
      particulars of all agreements, claims, leases and other arrangements between
      each Acquired Company and any other grant body are set out in the Disclosure
      Letter.

    

    (v) Borrowings

    

    (a) Full
      and
      accurate details of all loan, overdraft and other financial facilities available
      to any Acquired Companies are set out in the Disclosure Letter and neither
      the
      Vendors nor any Acquired Company have done anything whereby they may be
      prejudiced.

    

    (b) The
      total
      amount borrowed by each Acquired Company from each of its bankers does not
      exceed its respective overdraft facility limits.

    

    (c) The
      total
      amount borrowed by each Acquired Company does not exceed any limitation on
      such
      Acquired Company’s borrowings powers contained in its Articles of Association or
      in any debenture or other deed or document or agreement binding it.

    

    (d) No
      Acquired Company has outstanding (nor has it agreed to create or issue) any
      loan
      capital nor has it factored any of its debts or engaged in financing of a type
      which would not require to be shown or reflected in the Accounts nor borrowed
      any money which it has not repaid save for borrowings not exceeding the amounts
      shown in the Accounts.

    

    (e) No
      Acquired Company has since the last accounts date for the Acquired Companies
      repaid or become liable to repay any loan or indebtedness in advance of its
      stated date of maturity.

    

    (vi) Continued
      availability of Facilities

    

    (a) The
      Disclosure Letter sets out full and accurate details of all debentures,
      acceptance credits, overdrafts, loan or other financial facilities outstanding
      or available to each Acquired Company (together the "Facilities") and there
      are
      attached to it accurate and complete copies of all material documents relating
      to the Facilities.

    

    (b) There
      has
      been no contravention of or non-compliance with any of the provisions of such
      documents.

    

    (c) No
      steps
      for early repayment of any indebtedness of any Acquired Company has been taken
      or threatened.

    

    (d) There
      have not been any circumstances, nor are there existing circumstances whereby
      the continuation of any of the Facilities might be prejudiced or which may
      give
      rise to any alteration in the terms and conditions of any of the
      Facilities.

     

    
      
         

      

      
        55

        
          

        

      

      
         

      

    

    

    (e) None
      of
      the Facilities is dependent on the guarantee or indemnity of or any security
      provided by a third party (including of any Acquired Company).

    

    (f) As
      a
      result of the acquisition of the Shares by the Purchaser or any other thing
      contemplated by this Agreement none of the Facilities may be terminated or
      mature prior to its stated date of maturity.

    

    (vii) Bank
      accounts

    

    No
      Acquired Company has any bank accounts save as disclosed in the Disclosure
      Letter.

     

    
      	
            	4.11	
              TAXES.
                Each
                of the Acquired Companies has accurately prepared and filed all Tax
                Returns required to be filed prior to the date of this Agreement.
                True and
                complete copies of each of the most recent of any such Tax Returns,
                and
                such other returns and statements requested by Purchaser, have been
                provided to Purchaser. All such Tax Returns were true and correct
                in all
                material respects. Any Tax required to be paid or withheld with respect
                to
                the periods covered by such Tax Returns have been paid or withheld.
                The
                liabilities for unpaid Taxes shown on the Balance Sheet and the Interim
                Balance Sheet are and will be sufficient to pay all Taxes accrued
                through
                the date thereof and not reported on and paid with Tax Returns filed
                by
                the Acquired Companies prior to the Completion Date. No Tax liability
                will
                be incurred by the Acquired Companies as a result of the transactions
                contemplated by this Agreement. None of the Acquired Companies has
                been
                delinquent in the payment of any Tax, or in the filing of any Tax
                Return,
                and the Acquired Companies have not requested any extension of time
                in
                which to file any Tax Return with respect to any period prior to
                the
                Completion Date. Except as described in Part 4.11 of the Disclosure
                Letter, (i) none of the Acquired Companies has had any Tax deficiency
                proposed or assessed against it; (ii) no audit of any Tax Return
                of the
                any of the Acquired Companies is in progress or threatened; (iii)
                no
                director, officer or employee of an Acquired Company responsible
                for Tax
                matters expects any Tax Authority to assess any additional Taxes
                for any
                pre-Completion period for which Tax Returns have been filed; and
                (iv) no
                waiver or agreement by an Acquired Company is in force for the extension
                of time for the assessment or payment of any Tax. No Vendor nor any
                other
                officer or employee of an Acquired Company, has been contacted by
                a Tax
                Authority in connection with any personal liability for employment
                or
                sales Taxes that would otherwise be due and payable by an Acquired
                Company. No claim has ever been made by any Tax Authority in a
                jurisdiction where an Acquired Company does not file Tax Returns
                that it
                is or may be subject to Taxation by that jurisdiction. There are
                no
                security interests on any of the assets of the Acquired Companies
                that
                arose in connection with any failure (or alleged failure) to pay
                any Tax.
                The Acquired Companies are not and have never been party to or bound
                by
                any Tax sharing agreement. 

            

    

     

     

    
      
         

      

      
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            	4.12	
              NO
                MATERIAL ADVERSE CHANGE. Since
                the date of the Interim Balance Sheet, there has not been any material
                adverse change in the business, operations, properties, prospects,
                assets,
                or condition of any Acquired Company, and no event has occurred or
                circumstance exists that may result in such a material adverse
                change.

            

    

    

    
      	
            	4.13	
              EMPLOYEE
                BENEFITS. 

            

    

    

    
      	
            	(a)	
              Part
                4.13 of the Disclosure Letter sets forth a true and complete list
                of all
                written and oral pension, profit sharing, retirement, deferred
                compensation, stock purchase, stock option, incentive compensation,
                bonus,
                vacation, severance, sickness or disability, hospitalization, individual
                and group health and accident insurance, individual and group life
                insurance and other material employee benefit plans, programs, commitments
                or funding arrangements maintained by the Acquired Companies, to
                which any
                Acquired Company is a party, or under which any Acquired Company
                has any
                obligations, present or future (other than obligations to pay current
                wages, salaries or sales commissions terminable on notice of thirty
                (30)
                days or less) in respect of, or which otherwise cover or benefit,
                any of
                the current or former officers, employees or sales representatives
                (whether or not employees) of any Acquired Company, or their beneficiaries
                (hereinafter individually referred to as "Employee
                Benefit Plan"
                and collectively referred to as "Employee
                Benefit Plans").
                Vendors have delivered or made available to Purchaser true and complete
                copies of all documents, as they may have been amended to the date
                hereof,
                embodying the terms of the Employee Benefit Plans.
                

            

    

    

    
      	 	
              (b)

            	
              Except
                as set forth in Part 4.13 of the Disclosure Letter, each Employee
                Benefit
                Plan described therein is in full force and effect in accordance
                with its
                terms and is being maintained, administered and operated in all material
                respects in accordance with its terms. There are no material actions,
                suits or claims pending (other than routine claims for benefits),
                or, to
                the Vendors’ Knowledge, threatened, against any Employee Benefit Plan,
                against any Acquired Company, or any administrator, fiduciary, accountant,
                actuary, attorney or other third-party service provider (collectively,
                the
                "Service
                Providers")
                with respect to an Employee Benefit Plan. To the knowledge of the
                Vendors
                the Acquired Companies and Service Providers have performed all material
                obligations required to be performed by them with respect to, and
                they are
                not in default under or in violation of, any Employee Benefit Plan,
                in any
                material respect, and the Acquired Companies and the Service Providers
                are
                in compliance in all material respects with all Legal Requirements
                applicable to the Employee Benefit Plans.

            

    

     

     

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

     

    
      	 	
              (c)

            	
              Except
                as set forth in Part 4.13 of the Disclosure Letter, no Acquired Company
                is
                a party to any agreement to provide nor does it have an obligation
                to
                provide any individual, or such individual’s spouse or dependent, with any
                benefit following his or her retirement or termination of employment,
                nor
                his or her spouse, any dependent or any beneficiary subsequent to
                his or
                her death, with retirement, medical or life insurance or any benefit
                under
                any employee pension benefit plan and any employee welfare benefit
                plan.

            

    

    

    
      	 	
              (d)

            	
              No
                Employee Benefit Plan, Service Provider, or Acquired Company has
                any
                liability to any plan participant, beneficiary or other Person under
                any
                Legal Requirement attributable to the breach of any of its obligation
                with
                respect to any Employee Benefit Plan. No Acquired Company is delinquent
                or
                in arrears with respect to any contributions due under any Employee
                Benefit Plan. The Acquired Companies have satisfied all contribution
                obligations that have accrued prior to the Completion
                Date.

            

    

    

    
      	
            	4.14	
              COMPLIANCE
                WITH LEGAL REQUIREMENTS; GOVERNMENTAL
                AUTHORISATIONS

            

    

    

    (a) Except
      as
      set forth in Part 4.14 of the Disclosure Letter:

    

    
      	 	
              (i)

            	
              to
                the Vendors' Knowledge, each Acquired Company is, and at all times
                since 1
                January 2004 has been, in full compliance with each Legal Requirement
                that
                is or was applicable to it or to the conduct or operation of its
                business
                or the ownership or use of any of its
                assets;

            

    

    

    
      	 	
              (ii)

            	
              to
                the Vendors’ Knowledge, no event has occurred or circumstance exists that
                (with or without notice or lapse of time) (A) may constitute or result
                in
                a violation by any Acquired Company of, or a failure on the part
                of any
                Acquired Company to comply with, any Legal Requirement, or (B) may
                give
                rise to any obligation on the part of any Acquired Company to undertake,
                or to bear all or any portion of the cost of, any remedial action
                of any
                nature; and

            

    

    

    
      	 	
              (iii)

            	
              no
                Acquired Company has received, at any time since 1 January 2004,
                any
                notice or other communication (whether oral or written) from any
                Governmental Body or any other Person regard-ing (A) any actual,
                alleged,
                possible, or potential violation of, or failure to comply with, any
                Legal
                Requirement, or (B) any actual, alleged, possible, or potential obligation
                on the part of any Acquired Company to undertake, or to bear all
                or any
                portion of the cost of, any remedial action of any
                nature.

            

    

    

    
      	 	
              (b)

            	
              Part
                4.14 of the Disclosure Letter contains a complete and accurate list
                of
                each Governmental Authorisation that is held by any Acquired Company
                or
                that otherwise relates to the business of, or to any of the assets
                owned
                or used by, any Acquired Company. Each Governmental Authorisation
                listed
                or required to be listed in Part 4.14 of the Disclosure Letter is
                valid
                and in full force and effect. Except as set forth in Part 4.14 of
                the
                Disclosure Letter:

            

    

     

     

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

     

    
      	 	
              (i)

            	
              each
                Acquired Company is, and at all times since 1 January 2004 has been,
                in
                full compliance with all of the terms and requirements of each
                Governmental Authorisation identified or required to be identified
                in Part
                4.14of the Disclosure Letter;

            

    

    

    
      	 	
              (ii)

            	
              no
                event has occurred or circumstance exists that may (with or without
                notice
                or lapse of time) (A) constitute or result directly or indirectly
                in a
                violation of or a failure to comply with any term or requirement
                of any
                Governmental Authorisation listed or required to be listed in Part
                4.14 of
                the Disclosure Letter, or (B) result directly or indirectly in the
                revocation, withdrawal, suspension, cancellation, or termination
                of, or
                any modification to, any Governmental Authorisation listed or required
                to
                be listed in Part 4.14 of the Disclosure
                Letter;

            

    

    

    
      	 	
              (iii)

            	
              no
                Acquired Company has received, at any time since 1 January 2004,
                any
                notice or other communication (whether oral or written) from any
                Governmental Body or any other Person regarding (A) any actual, alleged,
                possible, or potential violation of or failure to comply with any
                term or
                requirement of any Governmental Authorisation, or (B) any actual,
                proposed, possible, or potential revocation, withdrawal, suspension,
                cancellation, termi-nation of, or modification to any Governmental
                Authorisation; and

            

    

    

    
      	 	
              (iv)

            	
              all
                applications required to have been filed for the renewal of the
                Governmental Authorisations listed or required to be listed in Part
                4.14
                of the Disclosure Letter have been duly filed on a timely basis with
                the
                appropriate Governmental Bodies, and all other filings required to
                have
                been made with respect to such Governmental Authorisations have been
                duly
                made on a timely basis with the appropriate Governmental
                Bodies.

            

    

    

    
      	 	
              (c)

            	
              The
                Governmental Authorisations listed in Part 4.14 of the Disclosure
                Letter
                collectively constitute all of the Governmental Authorisations necessary
                to permit the Acquired Companies to lawfully conduct and operate
                their
                businesses in the manner they currently conduct and operate such
                businesses and to permit the Acquired Companies to own and use their
                assets in the manner in which they currently own and use such
                assets.

            

    

    

    
      	
            	4.15	
              INSOLVENCY

            

    

    

    
      	
            	(i)	
              No
                order

            

    

     

    
      
         

      

      
        59

        
          

        

      

      
         

      

    

    

    No
      order
      has been made or no circumstance to Vendor’s Knowledge that would lead to,
      petition presented or resolution passed for the winding up or dissolution of
      any
      Acquired Company or for the appointment of a liquidator or examiner to any
      Acquired Company.

    

    
      
        	
              	(i)	
                No
                  receiver

              

      

    

    

    No
      receiver has been appointed by any person over the whole or any part of the
      business or assets of any Acquired Company.

    

    
      	
            	(ii)	
              Not
                insolvent

            

    

    

    No
      Acquired Company is insolvent or unable to pay its debts as they fall
      due.

    

    
      	
            	(iii)	
              Payment
                of debts

            

    

    

    No
      Acquired Company has stopped paying its debts as they fall due.

    

    
      	
            	(iv)	
              No
                distress etc.

            

    

    

    No
      distress, execution, sequestration or other process has been levied in respect
      of any of the assets of any Acquired Company.

    

    
      	
            	(v)	
              Composition
                or Schemes etc.

            

    

    

    No
      composition in satisfaction of the debts of any of the Acquired Companies,
      or
      scheme of arrangement of its affairs, or compromise or arrangement between
      it
      and its creditors or members or any class of its creditors or members, has
      been
      proposed, sanctioned or approved.

    

    
      	
            	(vi)	
              Crystallisation
                of Charges

            

    

    

    No
      event
      has occurred causing, or which upon intervention or notice by any third party
      may cause, any floating charge created by any of the Acquired Companies to
      crystallise or any charge created by it to become enforceable, nor has any
      such
      crystallisation occurred or is such enforcement in process.

    

    
      	
            	(vii)	
              Rights
                of Third Parties

            

    

    

    In
      relation to any property or assets held by each of the Acquired Companies under
      any hire purchase, conditional sale, chattel leasing, retention of title
      agreement or otherwise belonging to a third party, no event has occurred which
      entitles, or which upon intervention or notice by the third party may entitle,
      the third party to repossess the property or assets concerning or terminate
      the
      agreement or any licence in respect of the same.

     

    
      60

      
        

      

    

    

    

    

    
      	
            	(viii)	
              Notices
                Received

            

    

    

    No
      notices from the Revenue Commissioners under section 1001 of the Taxes
      Consolidation Act, 1997, nor any notices in a relevant jurisdiction of a similar
      or analogous effect, have been received by any director of any of the Acquired
      Companies.

    

    
      	
            	(ix)	
              Statutory
                Demand

            

    

     

    No
      21-day
      notices or other statutory demand whether under section 214 of the 1963 Act
      or
      otherwise has been received by any Acquired Company in any relevant
      jurisdiction.

    

    
      	
            	4.16	
              COMPETITION 

            

    

    

    
      	 	
              (i)
                

            	
              Competition
                law

            

    

    
      	 	 	 

    

    
      	 	 	
              No
                Acquired Company has engaged in any commercial arrangement or any
                behaviour whatsoever that infringed or would be likely to infringe
                Articles 81 or 82 of the EC Treaty or Sections 4 or 5 of the Competition
                Act, 2002 or any Irish competition rules in force prior to the entry
                into
                operation of Sections 4 or 5 of the Competition Act
                2002.

            

    

    

    
      	 	
              (ii)

            	
              Investigations

            

    

    
      	 	 	 

    

    No
      Acquired Company has received notification in respect of or, to the Knowledge
      of
      the Vendors, been subject to an investigation by the Competition Authority,
      the
      Commission of the European Communities, the Ombudsman, the Director of Consumer
      Affairs or any competition or governmental authority of Ireland or any other
      country in respect of any aspect of the business of the Acquired Company. No
      Acquired Company has given an undertaking to the Competition Authority or to
      the
      competition authority of any other country pursuant to an investigation
      conducted by that authority or authorities.

    

    
      	 	
              (iii)
                

            	
              EU
                and Irish Merger law

            

    

    
      	 	
               

            	 

    

    No
      Acquired Company is or has been subject to the notification requirements of
      Part
      III of the Competition Act, 2002 or the EU Merger Regulation 2004 or any related
      legislation for the time being in force prior to the entry into operation of
      the
      aforementioned legislative instruments.

    

    
      	
            	(iv)	
              Irish
                competition law

            

    

    

    
      	 	
              (a)

            	
              No
                Acquired Company is or has been a party to, or engaged in, any agreement,
                arrangement, decision, concerted practice or activity which was prohibited
                by section 4(1) of the Competition Act, 1991, or which is prohibited
                by
                section 4(1) of the Competition Act,
                2002.

            

    

    

    
      	 	
              (b)

            	
              No
                Acquired Company has made any notification to the Competition Authority
                requesting a licence pursuant to section 4(2) of the Competition
                Act, 1991
                or a certificate pursuant to section 4(4) of the Competition Act,
                1991.

            

    

     

     

    
      
         

      

      
        61

        
          

        

      

      
         

      

    

     

    
      	
            	(c)	
              No
                Acquired Company has committed, contrary to section 5 of the Competition
                Act, 1991, or section 5 of the Competition Act, 2002, any abuse,
                either
                alone or jointly with any other undertaking, of a dominant position
                within
                the State or a substantial part of the
                State.

            

    

    

    
      	 	
              (d)

            	
              An
                authorised officer appointed pursuant to section 20 of the Competition
                Act, 1991 or pursuant to section 45 of the Competition Act, 2002
                has not
                entered and inspected any premises at or vehicles in or by means
                of which
                any Acquired Company carries on business nor required such Acquired
                Company nor any person employed in connection with the Business to
                produce
                any books, documents or records and has not inspected, copied or
                taken
                extracts from any such books, documents and records nor required
                such
                Acquired Company nor any person to provide any information in regard
                to
                entries in such books, documents and records or in regard to such
                Acquired
                Company or its business or in regard to the persons employed in connection
                therewith.

            

    

    

    
      	 	
              (e)

            	
              No
                petition has been presented by a person pursuant to section 6(1)
                of the
                Competition Act, 1991 or pursuant to section 14 of the Competition
                Act,
                2002 for an injunction or declaration or damages including exemplary
                damages in relation to any agreement decision, concerted practice
                or
                action in which any Acquired Company is or has been involved nor
                has any
                such injunction or declaration or damages been
                granted.

            

    

    

    
      	 	
              (f)

            	
              No
                petition has been presented by the Minister pursuant to section 6(4)
                of
                the Competition Act, 1991 for an injunction or declaration in relation
                to
                any agreement, decision, concerted practice or action in which any
                Acquired Company is or has been involved nor has any such injunction
                or
                declaration been granted.

            

    

    

    
      	 	
              (g)

            	
              No
                proceedings have been issued to any group company, director, manager
                or
                other officer or employee of any Acquired Company pursuant to section
                8 of
                the Competition Act, 2002 in relation to any agreement, decision
                or action
                in which any Acquired Company or any director, manager or other officer
                or
                employee of any Acquired Company is or has been involved and no group
                company, director, manager or other officer or employee of any Acquired
                Company has been convicted of an offence under section
                8.

            

    

    

    
      	 	
              (h)

            	
              No
                investigation has been carried out by the Competition Authority pursuant
                to section 14 of the Competition Act, 1991 as to whether, in the
                opinion
                of the Authority, any Acquired Company is in a dominant position
                and, it
                is, whether the dominant position is being abused and the Minister
                has not
                made an order pursuant to section 14(3) of the Competition Act, 1991
                either (a) prohibiting the continuance of a dominant position enjoyed
                by
                any Acquired Company except on conditions specified in the order
                or (b)
                requiring the adjustment of the dominant
                position.

            

    

     

     

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

     

    
      	 	
              (i)

            	
              The
                Competition Authority has not pursuant to its powers under section
                7 of
                the Schedule to the Competition Act, 1991 or pursuant to its powers
                under
                section 31 of the Competition Act, 2002, done any of the following
                in
                relation to any officer or employee of any Acquired
                Company:

            

    

    

    
      	 	
              (i)

            	
              summoned
                one or more of them as a witness to attending before the
                Authority;

            

    

    

    
      	 	
              (ii)

            	
              examined
                on oath any such person or persons summonsed to attend before the
                Authority;

            

    

    

    
      	 	
              (iii)

            	
              required
                any such person or persons summonsed to appear as a witness before
                the
                Authority to produce to the Authority any document in the power or
                control
                of any such person or persons.

            

    

    

    (d) Mergers
      Control

    

    
      	 	
              (i)

            	
              Save
                in respect of the present transaction no order has been made under
                the
                Mergers Act which directly or indirectly affects the business of
                any
                Acquired Company.

            

    

    

    
      	 	
              (ii)

            	
              In
                relation to every merger or take-over in which any Acquired Company
                was
                involved prior to the date of this Agreement and to which the Mergers
                Act
                applied, the Minister has issued a statement in writing prior to
                completion of the merger or take-over concerned stating that he had
                decided not to make an order under section 9 of the Mergers Act in
                relation to the proposed merger or
                takeover.

            

    

    

    
      	 	
              (iii)

            	
              The
                Minister has not referred any proposed merger or take-over in which
                any
                Acquired Company is involved and to which the Mergers Act applies
                to the
                Competition Authority for investigation pursuant to section 7(b)
                of the
                Mergers Act.

            

    

    

    
      	 	
              (iv)

            	
              No
                Acquired Company has been the object of a report of the Competition
                Authority under section 8(1) of the Mergers Act stating whether,
                in the
                opinion of the Authority, a proposed merger or takeover would be
                likely to
                prevent or restrict competition or restrain trade in any goods or
                services
                and would be likely to operate against the common
                good.

            

    

    

    
      	 	
              (v)

            	
              Since
                3rd July, 1978 none of the Acquired Companies has been a party to
                any
                transaction notifiable pursuant to section 5 of the Mergers
                Act.

            

    

     

     

    
      
         

      

      
        63

        
          

        

      

      
         

      

    

     

    
      	 	
              (vi)

            	
              Since
                1st January, 2003, in relation to every merger or acquisition in
                which a
                Acquired Company was involved prior to the date of this agreement
                and to
                which the Competition Act, 2002 required a notification, or a notification
                has been made, the Competition Authority has determined that the
                merger or
                acquisition could be put into effect and any such merger or acquisition
                has been put into effect within one year of that
                determination.

            

    

    

    
      	 	
              (vii)

            	
              Since
                1st January, 2003, in relation to every merger or acquisition which
                a
                Acquired Company was involved, the Competition Authority has not
                carried
                out a full investigation under Section 22 of the Competition Act,
                2002.

            

    

    

    
      	 	
              (viii)

            	
              Since
                1st January, 2003, in relation to every merger or acquisition in
                which a
                Acquired Company was involved, the Competition Authority has not
                determined that the merger or acquisition could be put into effect
                only
                subject to conditions specified by
                it.

            

    

    

    
      	 	
              (ix)

            	
              Since
                1st January, 2003, in relation to every merger or acquisition in
                which a
                Acquired Company was involved, the Acquired Company has not offered
                proposals to the Competition Authority under Section 20(3) which
                have
                become binding commitments on the Acquired
                Company.

            

    

    

    
      	
            	(i)	
              Concentrations
                with a community dimension

            

    

    

    
      	 	 	
              No
                Acquired Company is or has been involved prior to or at the date
                of this
                Agreement in any arrangement or transaction or agreement which is
                or was a
                concentration with a community dimension within the meaning of Council
                Regulation (EEC) No. 4064/89 of 21st December 1989 on the control
                of
                concentrations between undertakings (the “Merger
                Control Regulation”)
                and no Acquired Company is or has been involved prior to or at the
                date of
                this Agreement in any arrangement or transaction or agreement which
                at the
                request of a Member State has been the subject of findings or decisions
                of
                the Commission of the European Communities pursuant to Article 22
                of the
                Merger Control Regulation.

            

    

    

    
      	 	
              (vii)

            	
              State
                Aid

            

    

    
      	 	 	 

    

    
      	 	 	
              No
                Acquired Company has ever received, nor is a Acquired Company proposing
                to
                receive, any aid (as that term is understood for the purposes of
                Articles
                87 to 89 of the Treaty of Rome) from a Member State of the European
                community or from State resources.

            

    

    

    
      	
            	4.17	
              LITIGATION
                AND COMPLIANCE WITH LAW

            

    

    

    
      	
            	(i)	
              Litigation

            

    

     

     

    
      
         

      

      
        64

        
          

        

      

      
         

      

    

     

    
      	 	
              (a)

            	
              No
                Acquired Company, to the Vendors’ Knowledge, and no person for whose acts
                or defaults any Acquired Company may be vicariously liable is involved,
                or
                has at any time been involved, in any civil, criminal, arbitration
                or
                other proceedings and no civil, criminal, arbitration or other proceedings
                are pending, or threatened, by or against any Acquired Company, to
                the
                Vendors’ Knowledge, or any person for whose acts or defaults any Acquired
                Company may be vicariously liable.

            

    

    

    
      	 	
              (b)

            	
              No
                fact or circumstance exists which is likely to give rise to any civil,
                criminal, arbitration or other proceedings involving any Acquired
                Company,
                to the Vendors’ Knowledge, or any person for whose acts or defaults any
                Acquired Company may be vicariously
                liable.

            

    

    

    
      	 	
              (c)

            	
              There
                is no outstanding judgment, order, decree, arbitral award or decision
                of
                any court, tribunal, arbitrator or governmental agency against any
                Acquired Company, to the Vendors’ Knowledge, or any person for whose acts
                or defaults any Acquired Company may be vicariously
                liable.

            

    

    

    
      	
            	(ii)	
              Compliance
                with law

            

    

    

    Each
      Acquired Company has conducted its business in all material respects in
      accordance with all applicable legal requirements in Ireland and
      elsewhere. 

    

    
      	
            	(iii)	
              Defective
                Products/Services

            

    

    

    The
      Acquired Companies have not manufactured, imported, sold or supplied products
      or
      supplied services which are or were in any material respect faulty or defective
      or which do not comply in any material respect with any warranties or
      representations expressly or implicitly made by the Acquired Companies, or
      with
      all applicable laws, regulations, standards and requirements.

    

    
      	
            	(iv)	
              Investigations

            

    

    

    There
      have been and are no governmental or other investigations or enquiries or
      disciplinary proceedings concerning any Acquired Company; none are pending
      or
      threatened.

    

    
      	
            	(v)	
              Directors
                and other Officers

            

    

    

    (a) None
      of
      the persons who at present is, or who at any time within the last three years
      was, a director or officer of any of the Acquired Companies is, or at any
      material time was, ineligible to be a director by reason of the Companies Acts,
      1963 to 2005.

    

    (b) None
      of
      the directors or other officers of any of the Acquired Companies has been
      declared by a court to be a person to whom chapter I of part IV of the 1990
      Act
      applies, nor has any person been or is an auditor, director or other officer
      in
      any way, whether directly or indirectly, concerned or taken part in the
      promotion, formation or management of any of the Acquired Companies in breach
      of
      Section 160 of the 1990 Act.

     

    
      
         

      

      
        65

        
          

        

      

      
         

      

    

    

    (c) the
      only
      directors and other officers of the Acquired Companies are the persons whose
      names are listed in Schedule 2 and no person is or has been a shadow director
      (within the meaning of section 27 of the 1990 Act) of any Acquired
      Company.

    

    
      	
            	(vi)	
              Unlawful
                payments

            

    

    

    No
      Acquired Company, to Vendor’s Knowledge, and no person for whose acts or
      defaults any Acquired Company may be vicariously liable has:

    

    (a) induced
      any person to enter into any agreement or arrangement with any Acquired Company
      by means of any unlawful or immoral payment, contribution, gift, or other
      inducement;

    

    (b) offered
      or made any unlawful or immoral payment, contribution, gift or other inducement
      to any government or other public official or employee; or

    

    (c) directly
      or indirectly made any unlawful contribution to any political
      activity.

    

    
      	
            	(viii)	
              General

            

    

    

    (a) All
      returns and all information required to be supplied by the Acquired Companies
      to
      the Revenue Commissioners, the Department of Health, the Department of Social
      Welfare, the Department of Enterprise and Employment and any other relevant
      governmental, regulatory, municipal and local authorities (in any country of
      the
      world) in connection with the business of the Acquired Companies have been
      so
      supplied when so requested and the same were and are complete true and accurate
      in all material respects.

    

    (b) Full
      details of all present negotiations with and investigations and enquiries by
      any
      of the public authorities referred to in the immediately preceding paragraph
      concerning any material liability (or alleged liability) actual or contingent
      of
      or any material act or omission of any Acquired Company (or any officer,
      employee or agent of the Acquired Company in such capacity) have been disclosed
      to the Purchaser and in respect of all such negotiations, investigations and
      enquiries full and frank disclosure of all material facts was made to such
      public authorities concerned and all information supplied to them was true
      and
      accurate in all respects and there were and are no circumstances which would
      render any such information inaccurate untrue or misleading in any
      respect.

    

    
      	
            	(ix)	
              RoHS
                Compliance

            

    

    

    The
      Acquired Companies have established Restriction of Hazardous Substances (RoHS)
      compliance of their products based on a full internal review of processes,
      as
      well as components supplied by customer-specified or outside approved vendors
      in
      connection with the Directive 2002/95/EC of the European Parliament and of
      the
      Council of 27 January 2003 on the restriction of the use of certain hazardous
      substances in electrical and electronic equipment.

     

    
      
         

      

      
        66

        
          

        

      

      
         

      

    

    

    
      	
            	4.18	
              ABSENCE
                OF CERTAIN CHANGES AND EVENTS

            

    

    

    Except
      as
      set forth in Part 4.18 of the Disclosure Letter, since the date of the Interim
      Balance Sheet, the Acquired Companies have conducted their businesses only
      in
      the Ordinary Course of Business and there has not been any:

    

    
      	
            	(a)	
              change
                in any Acquired Company's authorised or issued share capital; grant
                of any
                share option or right to purchase shares of any Acquired Company;
                issuance
                of any security con-vertible into such share capital; grant of any
                registration rights of any of the Acquired Companies securities;
                purchase,
                redemption, retirement, or other acquisition by any Acquired Company
                or
                declaration or payment of any dividend or other distribution or payment
                in
                respect of any of its shares;

            

    

    

    
      	
            	(b)	
              amendment
                to the Organisational Documents of any Acquired
                Company;

            

    

    

    
      	 	
              (c)

            	
              except
                in the Ordinary Course of Business, payment or increase by any Acquired
                Company of any bonuses, salaries, or other compensation to any
                shareholder, director, officer, or employee, or entry into any employment,
                severance, or similar Contract with any director, officer, or
                employee;

            

    

    

    
      	 	
              (d)

            	
              except
                in the Ordinary Course of Business, adoption of, or increase in the
                payments to or benefits under, any profit sharing, bonus, deferred
                compensation, savings, insurance, pension, retirement, or other employee
                benefit plan for or with any employees of any Acquired
                Company;

            

    

    

    
      	 	
              (e)

            	
              damage
                to or destruction or loss of any asset or property of any Acquired
                Company, whether or not covered by insurance, materially and adversely
                affecting the properties, assets, business, financial condition,
                or
                prospects of any Acquired Company;

            

    

    

    
      	 	
              (f)

            	
              entry
                into, termination of, or receipt of notice of termination of (i)
                any
                license, distributorship, dealer, sales representative, joint venture,
                credit, or similar agreement, or (ii) any Contract or transac-tion
                involving a total remaining commitment by or to any Acquired Company
                of at
                least €31,743.45;

            

    

    

    
      	 	
              (g)

            	
              other
                than in the Ordinary Course of Business, sale, lease, or other disposition
                of any asset or property of any Acquired Company or mortgage, pledge,
                or
                imposition of any Encumbrance on any material asset or property of
                any
                Acquired Company, including the sale, lease, or other disposition
                of any
                of the Intellectual Property
                Assets;

            

    

     

     

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

     

    
      	 	
              (h)

            	
              cancellation
                or waiver of any claims or rights with a value to any Acquired Company
                in
                excess of , individually or in the aggregate,
                €31,743.45;

            

    

    

    
      	 	
              (i)

            	
              material
                change in the accounting methods used by any Acquired Company;
                or

            

    

    

    
      	 	
              (j)

            	
              agreement,
                whether oral or written, by any Acquired Company to do any of the
                foregoing.

            

    

     

    
      	
            	4.19	
              CONTRACTS;
                NO DEFAULTS.

            

    

    

    (a) Part
      4.19
      of the Disclosure Letter contains a complete and accurate list, and Vendors
      have
      delivered to Purchaser true and complete copies (if in writing), of each
      Applicable Contract involving expenditures in excess of €10,000 in any twelve
      month period.

    

    (b) Except
      as
      set forth in Part 4.19(b) of the Disclosure Letter, each contract identified
      or
      required to be identified in Part 4.19(a) of the Disclosure Letter is in full
      force and effect.

    

    (c) To
      the
      Knowledge of the Vendors, except as set forth in Part 4.19(c) of the Disclosure
      Letter, no event has occurred or circumstance exists that (with or without
      notice or lapse of time) may contravene, conflict with, or result in a violation
      or breach of, or give any Acquired Company or other Person the right to declare
      a default or exercise any remedy under, or to accelerate the maturity or
      performance of, or to cancel, terminate, or modify any contract identified
      in
      Part 4.19(a) of the Disclosure Letter.

    

    (d) Except
      as
      set forth in Part 4.19(d) of the Disclosure Letter, no customer of any Acquired
      Company is entitled to or customarily receives discounts, allowances, volume
      rebates or similar reductions in price or trade terms other than in the Ordinary
      Course of Business.

    

    (e) No
      party
      with whom any Acquired Company has entered into any agreement or arrangement
      has
      given any notice of its intention to terminate, or has otherwise sought to
      repudiate or disclaim, the agreement or arrangement. 

    

    (f) No
      Acquired Company and no party with whom any Acquired Company has entered into
      any agreement or arrangement is in material breach under the agreement or
      arrangement. No matter exists which might give rise to a breach of this type.
      

    

    
      	
            	4.20	
              INSURANCE.
                

            

    

    

    (a) Part
      4.20
      of the Disclosure Letter lists all material policies or binders of fire,
      liability (including product liability), worker’s compensation, vehicular,
      casualty, title or other insurance held by or on behalf of any Acquired Company
      (specifying the insurer, the policy number or covering note number with respect
      to binders, the amount of coverage thereunder and describing each pending claim
      thereunder other than routine claims for coverage under a group medical plan
      insurance policy).

     

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

    

    (b) All
      policies described in Part 4.20 of the Disclosure Letter are sufficient for
      compliance with all Legal Requirements and of all applicable agreements to
      which
      any Acquired Company is a party or by which any Acquired Company is bound,
      (ii)
      are, to the Vendors’ Knowledge, valid, outstanding and enforceable policies, and
      (iii) to the Vendors’ Knowledge, except as listed on Part 4.20 of the Disclosure
      Letter, will not be affected by, terminate, or lapse by reason of, the
      transactions contemplated by this Agreement. To the Vendors’ Knowledge, no
      Acquired Company is in default with respect to any provision contained in any
      policy described in Part 4.20 of the Disclosure Letter or has failed to give
      any
      material notice or present any material claim under any such policy in a due
      and
      timely fashion. Except for claims set forth in Part 4.20 of the Disclosure
      Letter and routine medical claims, there are no outstanding unpaid claims under
      any such policy.

    

    (c) No
      Acquired Company has received a notice of cancellation or non-renewal of any
      such policy or binder and, to the Vendors’ Knowledge, there is no material
      inaccuracy in any application for any such policy or binder, failure to pay
      premiums when due or other similar state of facts which would form the basis
      for
      termination of any such insurance. Part 4.20 of the Disclosure Letter contains
      a
      brief description of the Acquired Companies’ general liability loss history
      under the policies of insurance therein listed.

    

    (d) To
      the
      Vendors’ Knowledge, nothing has been done or omitted to be done by any Acquired
      Company which is likely to result in an increase in premium under any insurance
      or indemnity policy. 

    

    (e) All
      claims made by any Acquired Company under its past and present insurance
      policies have been settled in full by the relevant insurers. 

    

    
      	
            	4.21	
              ENVIRONMENTAL
                MATTERS.

            

    

    

    Except
      as
      set forth in Part 4.21 of the Disclosure Letter:

    

    (a) To
      the
      Knowledge of the Vendors there have not been any activities, events or
      conditions in, on or under the Acquired Company Real Property or any other
      real
      property which has been owned, leased, occupied or under the control of any
      Acquired Company (for purposes of this Section 4.21, collectively, the "Real
      Property") at any time during the period such Real Property was owned, leased,
      occupied or controlled by the Acquired Companies or, to Vendors Knowledge,
      at
      any time prior thereto, involving the presence, handling, use, generation,
      treatment, storage, or disposal of any Hazardous Substances in violation of
      applicable Environmental Laws.

     

    
      
         

      

      
        69

        
          

        

      

      
         

      

    

    

    (b) To
      the
      Knowledge of the Vendors there have not been any Releases of any Hazardous
      Substances at, to or from any of the Real Property (including without limitation
      any such Releases at any other property of any Hazardous Substances generated
      by
      any Acquired Company at any time since the Real Property has been owned, leased,
      occupied or controlled by any Acquired Company) or, to the Vendors’ Knowledge,
      at any time prior thereto that (i) is or was in material violation of applicable
      Environmental Law to the extent that such Environmental Laws provide applicable
      standards defining acceptable levels of Hazardous Substances; (ii) could
      reasonably be expected to result in the imposition of a claim being attached
      to
      any Real Property that could have a material adverse effect on the
      Company.

    

    (c) (i)
      To
      the Knowledge of the Vendors, each Acquired Company has been at all times and
      is
      now in material compliance with all, and has not received notice that it is
      otherwise subject to any unsatisfied liability under any, Environmental Laws;
      (ii) there is no pending or, to Vendors Knowledge, threatened litigation,
      investigation or enforcement action, administrative order or notice of violation
      brought under any Environmental Law concerning any of the Acquired Companies’
operations or the Real Property; and (iii) none of the Acquired Companies has
      received any unsatisfied request for information, notice of claim, demand or
      other notification or allegation that it is or may be potentially responsible
      for any threatened or actual Release of Hazardous Substances.

    

    (d) Part
      4.21
      of the Disclosure Letter contains a complete list of all environmental audits
      or
      reports regarding the Real Property performed by or on behalf of any Acquired
      Company during the past five years, and Vendors have made copies of all such
      audits or reports available to Purchaser.

    

    
      	 	
              4.22

            	
              EMPLOYEES.
                

            

    

    

    
      	
            	(i)	
              General

            

    

    

    
      	 	
              (a)

            	
              There
                are in existence service agreements or employment contracts with
                all
                officers and or employees of any Acquired Company. No consultancy
                agreements or arrangements exist between any Acquired Company and
                any
                third party.

            

    

    

    
      	 	
              (b)

            	
              There
                is not in existence any service agreement with any officer or employee
                of
                any Acquired Company which cannot be terminated by three months’ notice or
                less without giving rise to any claim for damages or compensation
                (other
                than a statutory redundancy payment or statutory compensation for
                unfair
                dismissal) and no Acquired Company has received notice of resignation
                from
                any key employees and there are no commitments or undertakings to
                any such
                persons other than as set forth in formal written agreements or contracts
                already disclosed in writing to the
                Purchaser.

            

    

     

     

    
      
         

      

      
        70

        
          

        

      

      
         

      

    

     

    
      	 	
              (c)

            	
              No
                offers of employment have been made to employees who have accepted
                but not
                yet commenced employment.

            

    

    

    
      	 	
              (d)

            	
              Full
                particulars are contained in the Disclosure Letter of employee details,
                including employee name, job title, contract status, start date,
                length of
                service, date of last pay review, annual pay, health insurance (if
                relevant), disability health insurance (if relevant), permanent health
                insurance (if relevant), percentage of pension paid by the Company,
                vacation entitlement days, bonus plan (if relevant), employee sales
                commission plan (if relevant), company car (if relevant). Section
                4.22 of
                the Disclosure Letter contains all material employment-related
                provisions.

            

    

     

    
      	 	
              (e)

            	
              The
                basis of the remuneration payable to the officers or employees of
                each
                Acquired Company is the same as that in force at the date of the
                Interim
                Balance Sheet and no Acquired Company is obliged to increase or has
                made
                any provision to increase the aggregate annual remuneration payable
                to the
                officers and employees by more than five per
                cent.

            

    

    

    
      	 	
              (f)

            	
              There
                are no amounts owing to any present or former officers or employees
                of any
                Acquired Company other than remuneration accrued to date or for
                disbursement of business expenses details of which are contained
                in the
                Disclosure Letter.

            

    

    

    
      	 	
              (g)

            	
              There
                is no agreement or arrangement between any Acquired Company and any
                officer or employee or former employee with respect to his employment,
                his
                ceasing to be employed or his retirement which is not included in
                the
                written terms of his employment or service or previous employment
                or
                service (as the case may be).

            

    

    

    
      	 	
              (h)

            	
              Each
                Acquired Company has maintained current and adequate records regarding
                the
                service of each of its current and former officers and employees
                including, without limitation, details of terms of employment, holidays,
                working hours and rest breaks, payment of sick pay, statutory maternity
                pay, disciplinary and health and safety matters, PAYE and PRSI payments
                and termination of employment.

            

    

    

    
      	 	
              (i)

            	
              No
                current or former officer or employee of any Acquired Company has
                given or
                received notice terminating his or her employment since the date
                of the
                Interim Balance Sheet. 

            

    

    

    
      	 	
              (j)

            	
              No
                employee or officer of any Acquired Company is assigned or employed
                wholly
                or mainly outside of Ireland.

            

    

    

    
      	 	
              (k)

            	
              No
                employee or former employee of any Acquired Company is currently
                on
                maternity leave, paternity leave, parental leave, adoptive leave,
                carer’s
                leave, study leave or other approved absence (other than holiday
                leave) or
                has a right to return to work pursuant to the Maternity Protection
                Acts,
                1994 and 2004, the Adoptive Leave Act, 1995, the Parental Leave Act,
                1998
                or the Carer’s Leave Act, 2001, or has or may have a right to be
                reinstated or re-engaged and no employee of any Acquired Company
                is on
                long term absence from work due to ill
                health.

            

    

     

     

    
      
         

      

      
        71

        
          

        

      

      
         

      

    

     

    
      	
            	(l)	
              On
                or prior to completion:-

            

    

    

    
      	 	
              (A)

            	
              all
                PRSI contributions (both employer’s and employees’) due and payable by
                each Acquired Company will have been duly
                paid;

            

    

    

    
      	 	
              (B)

            	
              all
                amounts due to the Revenue Commissioners in respect of deductions
                which
                have been made or which should have been made by any Acquired Company
                in
                accordance with PAYE regulations from time to time in force have
                been
                deducted so that no Acquired Company will have any liability in respect
                thereof;

            

    

    

    
      	 	
              (C)

            	
              all
                certificates relating to matters referred to in this paragraph which
                by
                law are required to be given by employers to employees (as defined)
                have
                been given to all employees of Acquired Companies and are true and
                accurate in all material respects.

            

    

    

    
      	 	
              (m)

            	
              There
                are no schemes in operation by or in relation to a Acquired Company
                whereunder any employee of a Acquired Company or any other person
                whatsoever is entitled to a commission, incentive payment, remuneration
                bonus or other payment of any sort calculated by reference to the
                whole or
                any part of the turnover, profits or sales of the Acquired
                Company.

            

    

    

    
      	 	
              (n)

            	
              Every
                employee or former employee of each Acquired Company who should have
                been
                treated as employed for tax purposes has been so
                treated.

            

    

    

    
      	
            	(o)	
              No
                Acquired Company has incurred any
                liability:

            

    

    

    
      	 	
              (A)

            	
              for
                breach or termination of or variation of any service agreement with
                any of
                its officers or employees or former officers or employees including,
                without limitation, redundancy payments, protective awards, compensation
                for wrongful dismissal or unfair dismissal or failure to comply with
                any
                order for the reinstatement or re-engagement of any officer or employee
                or
                former officer or employee; and

            

    

    

    
      	 	
              (B)

            	
              for
                breach or termination of any consultancy
                agreement.

            

    

     

     

    
      
         

      

      
        72

        
          

        

      

      
         

      

    

     

    
      	 	
              (p)

            	
              There
                is no agreement or arrangement between any of the Acquired Companies
                and
                any of its employees or former employees with respect to past and/or
                current redundancy payments;

            

    

    

    
      	 	
              (q)

            	
              No
                Acquired Company has in existence nor is it proposing to introduce
                a sick
                pay scheme;

            

    

    

    
      	 	
              (r)

            	
              No
                Acquired Company has agreed to make any payment to its employees
                on
                maternity or other protective
                leave;

            

    

    

    
      	 	
              (s)

            	
              No
                Acquired Company pays nor is it proposing to introduce payment of
                commission to any of its employees;

            

    

    

    
      	 	
              (t)

            	
              No
                employee is in receipt of or entitled to more than 20 days holidays
                per
                calendar year;

            

    

    

    
      	 	
              (u)

            	
              Save
                as disclosed in the Disclosure Letter, there is no agreement or
                arrangement between any Acquired Company and any of its employees
                with
                respect to payment by any of the Acquired Companies of any of its
                employee’s medical
                insurance/VHI/BUPA/VIVAS.

            

    

    

    
      	 	
              (v)

            	
              Save
                as disclosed in the Disclosure Letter, there is no agreement or
                arrangement between any Acquired Companies and any of its employees
                or
                officers with respect to payment by any of the Acquired Companies
                of a car
                allowance or provision of a car to any of its employees or
                officers;

            

    

    

    
      	 	
              (w)

            	
              No
                Acquired Company is liable to make payment to any person pursuant
                to the
                Employment Equality Act, 1977 the Anti-Discrimination (Pay) Act,
                1974 or
                the Employment Equality Acts, 1998 to
                2004.

            

    

    

    
      	
            	(ii)	
              Payments
                on termination

            

    

    

    Except
      as
      disclosed in the Accounts:

    

    
      	
            	(a)	
              no
                liability has been incurred by any Acquired Company for breach or
                termination of any service agreement or employment contract with
                any of
                its employees or former employees including, without limitation,
                redundancy payments, protective awards, compensation for wrongful
                dismissal or unfair dismissal or failure to comply with any order
                for the
                reinstatement or re-engagement of any employee or former
                employee; 

            

    

    

    
      	 	
              (b)

            	
              no
                liability has been incurred by any Acquired Company for breach or
                termination of any consultancy agreement or other contract for services;
                and

            

    

     

     

    
      
         

      

      
        73

        
          

        

      

      
         

      

    

     

    
      	 	
              (c)

            	
              no
                Acquired Company has made or agreed to make or promised any payment
                or
                provided or agreed to provide any material benefit or gratuitous
                payment
                to any current or former officer or employee of any Acquired Company
                or
                any dependent of any current or former officer or employee in connection
                with the actual or proposed termination or suspension of employment
                or
                variation of any service agreement of any present or former director
                or
                employee.

            

    

    

    
      	
            	(iii)	
              Non-allowable
                Payments

            

    

    

    None
      of
      the Acquired Companies has made or agreed to make any payment to or provided
      or
      agreed to provide any benefit for any current or former officer or employee
      which is not allowable as a deduction for the purposes of Taxation.

    

    
      	
            	(iv)	
              Liabilities
                for Employees 

            

    

    

    None
      of
      the Acquired members is liable to pay any industrial training levy nor has
      outstanding any undischarged liability to pay to any governmental or regulatory
      authority in any jurisdiction any contribution, Taxation or other impost arising
      in connection with the employment or engagement of current or former officers
      or
      employees by it.

    

    
      	
            	(v)	
              Claims
                by Employees

            

    

    

    There
      are
      no claims in existence, pending or, to the Vendors’ Knowledge, threatened
      against any of the Acquired Companies:

    

    
      	 	
              (a)

            	
              by
                a current or former employee or workman or third party, in respect
                of any
                accident or injury which is not fully covered by insurance;
                

            

    

    

    
      	 	
              (b)

            	
              by
                a current or former officer or employee in relation to his terms
                and
                conditions of employment or appointment;
                or

            

    

    

    
      	 	
              (c)

            	
              by
                a current or former employee for unfair dismissal, notice, redundancy,
                wrongful dismissal or breach of
                contract;

            

    

    

    nor
      is
      any Acquired company aware of any circumstances which would give rise to such
      a
      claim. 

    

    
      	
            	(vi)	
              Compliance
                with Statutes

            

    

    

    Each
      of
      the Acquired Companies has in relation to each of its officers and employees
      (and, so far as relevant, to each of its former officers and employees) complied
      in all material respects with:

    

    
      	 	
              (a)

            	
              all
                obligations imposed by it by Article 141 of the Treaty of Rome;
                

            

    

     

     

    
      
         

      

      
        74

        
          

        

      

      
         

      

    

     

    
      	 	
              (b)

            	
              all
                statutes, regulations and codes of conduct and practice relevant
                to the
                relations between it and its employees or any trade
                union;

            

    

    

    
      	 	
              (c)

            	
              all
                collective agreements, customs and practices for the time being dealing
                with such relations or the conditions of service of its
                employees;

            

    

    

    
      	 	
              (d)

            	
              all
                relevant orders and awards made under any relevant statute, regulation
                or
                code of conduct or practice affecting the conditions of service of
                its
                employees;

            

    

    

    
      	 	
              (e)

            	
              all
                obligations imposed by the European Communities (Protection of Employees
                on Transfer of Undertakings) Regulations, 2003 in relation to any
                sale,
                purchase or other transfer coming within the terms of those Regulations;
                

            

    

    

    
      	 	
              (f)

            	
              all
                obligations imposed by the Safety, Health and Welfare at Work Act,
                2005
                and all regulations pursuant thereto and amending legislation in
                force
                from time to time;

            

    

    

    
      	 	
              (g)

            	
              all
                recommendations, decisions and determinations made by Industrial
                Relations
                Officers, the Labour Relations Commission, Rights Commissioners,
                Equality
                Officers, the Employment Appeals Tribunal or by the Labour Court;
                and

            

    

    

    
      	 	
              (h)

            	
              all
                obligations in respect of part-time workers imposed by the Protection
                of
                Employees (Part-Time Work) Act,
                2001.

            

    

    

    
      	
            	(vii)	
              Industrial
                Disputes and Negotiations

            

    

    

    None
      of
      the Acquired Companies is involved in any dispute or negotiation regarding
      a
      claim of material importance with any trade unions or association of trade
      unions or organisation or body of employees, and no facts or circumstances
      exist
      which might lead to any such dispute and during the past two calendar years,
      none of the Acquired Companies has had a strike or lockout or any other labour
      disputes which has materially disrupted their businesses.  

    

    
      	
            	(viii)	
              Redundancies
                and transfer of business

            

    

    

    Within
      the period of one year ending on the date of this Agreement, no Acquired Company
      has:

    

    
      	 	
              (a)

            	
              given
                notice of any redundancies to its employees and/or the Minister for
                Enterprise, Trade and Employment or started consultations in respect
                of
                redundancies with any trade union or directly with employees and/or
                their
                representatives whether pursuant to Part II of the Protection of
                Employment Act, 1977 and 2000 or Regulation 7 of the European Communities
                (Safeguarding of Employees’ Rights on Transfer of Undertakings)
                Regulations 1980 and 2000 or otherwise;
                and

            

    

     

     

    
      
         

      

      
        75

        
          

        

      

      
         

      

    

     

    
      	 	
              (b)

            	
              been
                a party to any relevant transfer within the scope of the European
                Communities (Safeguarding of Employees’ Rights on Transfer of
                Undertakings) Regulations, 1980 and 2000 nor has any Acquired Companies
                member failed to comply with any duty to inform and consult any trade
                union under those Regulations.

            

    

    

    
      	
            	(ix)	
              Trade
                Unions

            

    

    

    Full
      and
      complete details of all recognised trade unions and all collective bargaining
      or
      procedural or other agreements or arrangements in existence relating or relevant
      to any of the employees of the Acquired Companies and of the current state
      of
      any negotiations with any trade union staff association or other organisation
      formed for a similar purpose which might affect the terms and conditions of
      employment of any employees are set out in the Disclosure Letter.

    

    
      	
            	(x)	
              Incentive
                Schemes

            

    

    

    No
      Acquired Company has in existence not is it proposing to introduce any share
      incentive, share option, profit sharing, bonus or other incentive scheme for
      any
      of its consultants, officers or employees.

    

    
      	
            	(xi)	
              Training

            

    

    

    There
      is
      no training scheme, arrangement or proposal in existence at the date of this
      Agreement in relation to any Acquired Company.

    

    
      	
            	4.23	
              PENSIONS
                AND OTHER BENEFITS

            

    

     

    
      	
            	(i)	
              Definitions

            

    

    

    For
      the
      purposes of the Warranties in this Section 4.23

     

    "Approved"
      means
      exempt approved by the Revenue Commissioners for the purposes of Section 774
      of
      Taxes Consolidation Act, 1997 and reference to "Approval" shall be construed
      accordingly;

     

    “Defined
      Contribution Scheme”
      means a
      scheme under which the amount of the benefits other than some or all of the
      benefits payable on death before becoming a pensioner, payable to or in respect
      of a member of the scheme is calculated by reference to the contributions made
      to the scheme by and in respect of the member within the meaning of section
      2 of
      the Pensions Act.

     

    “Pensions
      Act”
      means
      the Pensions Acts 1990 to 2005 and all regulations promulgated
      thereunder.

     

    
      
         

      

      
        76

        
          

        

      

      
         

      

    

     

    "Pension
      Schemes"
      means
      the Betatherm Ireland Limited Retirement Benefit Scheme established by
      Declaration of Trust dated 6 December 1996 and the Betatherm Ireland Limited
      Retirement Solutions Plan established by Declaration of Trust on 17 February
      2000.

     

    “PHI
      Scheme”
      means
      the Betatherm Ireland Limited PHI Scheme established with Friends First - Scheme
      No. 705770.

     

    
      	
            	(ii)	
              Documentation

            

    

    

    Full
      details of each of the Pension Schemes and the PHI Scheme have been given to
      the
      Purchaser in the form of true and complete copies of:

     

    (a) all
      agreements, deeds and rules governing or relating to each of the Pension Schemes
      and the PHI Scheme and all announcements, booklets and other explanatory
      literature or communications issued to employees; and

    

    (b) in
      the
      case of any of the Pension Schemes in relation to which the trustees or managers
      are required to obtain audited accounts, the audited accounts of the relevant
      Pension Scheme for the last scheme year; and 

    

    (c) all
      policies effected with and agreements with any insurance company for the
      purposes of the Pension Schemes (or any of them) and the PHI Scheme;
      and

    

    (d) any
      agreement with any person providing services of any nature in connection with
      any of the Pension Schemes or the PHI Scheme including, without limitation,
      investment management or advisory services, administration and data processing
      services.

    

    
      	
            	(iii)	
              No other
                obligations

            

    

    

    (a) Except
      for the Pension Schemes and the PHI Scheme there are not in operation, and
      no
      proposal has been announced to enter into or establish, any agreement,
      arrangement, custom or practice (whether legally enforceable or not or whether
      or not Approved) for the payment of, or payment of any contributions towards,
      any pensions, allowances, lump sum or other like benefits or retirement, death,
      termination of employment (whether voluntary or not) or during periods of
      sickness or disablement, for the benefit of any employee or officer or former
      employee or officer or for the benefit of the dependants of any of
      them.

    

    (b) No
      Acquired Company has any obligation under or in connection with any of the
      Pension Schemes or the PHI Scheme in respect of any past or present employee
      or
      officer or any dependant or beneficiary or any of them other than under the
      documents referred to at 4.23 (ii) which documents contain full and accurate
      details of all benefits payable under each of the Pension Schemes and the PHI
      Scheme.

     

    
      
         

      

      
        77

        
          

        

      

      
         

      

    

    

    (c) No
      plan,
      proposal or intention to amend, discontinue in whole or in part or exercise
      any
      discretion in relation to any of the Pension Schemes or the PHI Scheme has
      been
      communicated to any person.

    

    (d) Neither
      any Acquired Company nor the trustees or administrator of any of the Pension
      Schemes has given in relation to any of the Pension Schemes or its current
      or
      former assets, liabilities or members, any indemnity, undertaking or guarantee
      (apart from any general indemnity in favour of the trustees under the governing
      documents and in respect of any such general indemnity no event or omission
      has
      occurred which might result in any Acquired Company incurring any liability
      under same).

    

    (e) Each
      Acquired Company may terminate its liability to contribute to each Pension
      Scheme without notice, without the consent of any person and without further
      payment.

    

    
      	
            	(iv)	
              Discretionary practices

            

    

     

    No
      discretion or power has been exercised under any of the Pension Schemes or
      the
      PHI Scheme in respect of any past or present employee or officer or dependant
      of
      any of them to:

    

    
      	
            	(a)	
              augment
                benefits; or

            

    

     

    
      	 	
              (b)

            	
              admit
                to membership any person who would not otherwise have been eligible
                for
                admission to membership; or 

            

    

     

    
      	 	
              (c)

            	
              admit
                to membership any person on terms which provided for or envisaged
                the
                payment of a transfer value or a transfer of assets from another
                scheme to
                any of the Pension Schemes in a case in which the payment or transfer
                has
                not been made or has not been made in full;
                or

            

    

     

    
      	
            	(d)	
              provide
                a benefit which would not otherwise be provided;
                or

            

    

     

    
      	
            	(e)	
              pay
                a contribution which would not otherwise have been
                paid.

            

    

     

    
      	
            	(v)	
              Defined Contribution Schemes

            

    

    

    In
      relation to each Pension Scheme which is a Defined Contribution
      Scheme:

    

    
      	 	
              (a)

            	
              the
                Purchaser has been notified of the rates at which contributions to
                the
                Pension Scheme have been paid in respect of each member of the Pension
                Scheme and the basis on which they are calculated and whether they
                are
                paid in advance or in arrear; and

            

    

    

    
      	 	
              (b)

            	
              no
                assurance, promise or guarantee (whether oral or written) has been
                made or
                given to any past or present employee or officer of any particular
                level
                or amount of benefits to be provided for in respect of him on retirement,
                death or leaving service under the Pension Scheme;
                and

            

    

     

     

    
      
         

      

      
        78

        
          

        

      

      
         

      

    

     

    
      	 	
              (c)

            	
              all
                contributions due to the Pension Scheme have been paid in full by
                the due
                date for payment in accordance with the requirements of section 58A
                of the
                Pensions Act; and

            

    

    

    
      	 	
              (d)

            	
              the
                Pension Scheme was established as a Defined Contribution Scheme and
                has
                not previously been converted from a Defined Benefit Scheme and was
                not
                established in succession to a Defined Benefit Scheme relating to
                the same
                employment.

            

    

    

    
      	
            	(vi)	
              Compliance

            

    

    

    
      	 	
              (a)

            	
              Each
                Pension Scheme is Approved and, so far as the Vendors are aware,
                there are
                no circumstances which might give the Revenue Commissioners reason
                to
                withdraw Approval.

            

    

    

    
      	 	
              (b)

            	
              Each
                Pension Scheme has been designed to comply with, and has been administered
                in accordance with:

            

    

    

    
      	 	
              (i)

            	
              all
                applicable laws including, without limitation, the Pensions Act and
                all
                relevant statutes and subordinate legislation of Ireland and all
                relevant
                provisions of the laws of the European Communities;
                and

            

    

     

    
      	 	
              (ii)

            	
              the
                trusts, powers and provisions of the relevant Pension Scheme;
                and

            

    

     

    
      	 	
              (iii)

            	
              the
                requirements of the Retirement Benefits District of the Revenue
                Commissioners for exempt approval.

            

    

     

    
      	 	
              (c)

            	
              Each
                Pension Scheme is registered with the Pensions Board as required
                by the
                Pensions Act.

            

    

    

    
      	 	
              (d)

            	
              The
                Occupational Pension Schemes (Member Participation in the Selection
                of
                Trustees) Regulations, 1994, have never been invoked in respect of
                any of
                the Pension Schemes.

            

    

    

    
      	 	
              (e)

            	
              So
                far as the Vendors are aware, there has been no breach of the trusts
                of
                any of the Pension Schemes and the PHI Scheme and there are no actions,
                suits or claims (other than routine claims for benefits) outstanding,
                pending or threatened against the trustees or administrator of any
                of the
                Pension Schemes or the PHI Scheme or against any Acquired Company
                or any
                other employer participating in any of the Pension Schemes or the
                PHI
                Scheme in respect of any act, event, omission or other matter arising
                out
                of or in connection with the Pension Schemes or PHI Scheme as the
                case may
                be and there are no circumstances which may give rise to any such
                claim.

            

    

    

    
      	 	
              (f)

            	
              There
                are no “excluded employees” as defined in Part X of the Pensions Act.
                

            

    

     

     

    
      
         

      

      
        79

        
          

        

      

      
         

      

    

     

    
      	 	
              (g)

            	
              Each
                Pension scheme is a Defined Contribution Scheme and has not been
                represented as anything other than a Defined Contribution Scheme
                to any
                past or present member. 

            

    

    

    
      	
            	(vii)	
              Insurance

            

    

    

    All
      benefits (other than refunds of contributions) payable under each of the Pension
      Schemes and the PHI Scheme on the death of a member of any of the Pension
      Schemes or the PHI Scheme or during periods of sickness or disability of the
      member are at the date of this agreement fully insured under a policy effected
      with an insurance company of good repute and each member has been covered for
      such insurance by such insurance company at its normal rates and on its normal
      terms for persons in good health and all insurance premiums payable have been
      paid.

     

    
      	
            	(viii)	
              Membership

            

    

    

    
      	 	
              (a)

            	
              The
                Purchaser has been furnished with a true and complete list of the
                present
                and former employees who are or were members of each of the Pension
                Schemes and the PHI Scheme with all particulars of them relevant
                to their
                membership of the applicable Pension Scheme and/or the PHI Scheme
                as are
                necessary to establish their entitlement to
                benefits.

            

    

    

    
      	 	
              (b)

            	
              Each
                past or present employee or officer who has been admitted to or promised
                admission to membership of any of the Pension Schemes or the PHI
                Scheme
                has been admitted or promised admission as of the date on which he
                first
                became entitled to admission and the substance of the terms of the
                admission or promised admission have been communicated to such past
                or
                present employee or officer.

            

    

    

    
      	
            	(ix)	
              Pension scheme
                assets

            

    

     

    
      	 	
              (a)

            	
              The
                trustees of each of the Pension Schemes have legal title to all the
                assets
                of the Pension Scheme of which they are the trustees and there are
                no
                encumbrances over any of the assets of any of the Pension
                Schemes.

            

    

    

    
      	 	
              (b)

            	
              No
                person holds as an asset of any of the Pension Schemes any securities
                issued by, properties leased to or occupied by, and no loans have
                been
                made out of the assets of any of the Pension Schemes which are at
                the date
                of this agreement outstanding to, the Vendors or any company connected
                with any of them.

            

    

    

    
      	
            	(x)	
              Part
                Time and Fixed
                Term Employees

            

    

     

    There
      are
      no past or present part time or fixed term employees who are or were excluded
      from or ineligible for membership of any of the Pension Schemes.

     

    
      
         

      

      
        80

        
          

        

      

      
         

      

    

     

    
      	
            	(xi)	
              Group Companies

            

    

     

    
      	 	
              (a)

            	
              No
                company other than the Acquired Company participates in any of the
                Pension
                Schemes.

            

    

     

    
      	 	
              (b)

            	
              Each
                Acquired Company has been properly admitted to participation in each
                Pension Scheme and has duly complied with its obligations under each
                Pension Scheme and all amounts due to be paid to each Pension Scheme
                from
                each Acquired Company and its employees have been
                paid.

            

    

     

    
      	
            	4.24	
              INTELLECTUAL
                PROPERTY. 

            

    

    

    
      	 	
              (i)

            	
              Intellectual
                Property Assets.
                The term "Intellectual Property Assets"
                includes:

            

    

    

    
      	
            	(a)	
              the
                names of each of the Acquired Companies, all fictional business names,
                trading names, domain names, registered and unregistered trademarks,
                service marks, and applications (collectively, "Marks") of the Acquired
                Companies or owned, used or licensed by any Acquired Company as licencee
                or licensor;

            

    

    

    
      	
            	(b)	
              all
                patents, patent applications, (including supplementary protection
                certificates) (collectively, "Patents") of the Acquired Companies
                or
                owned, used or licenced by any Acquired Company as licencee or
                licensor;

            

    

    

    
      	
            	(c)	
              all
                copyrights in both published works and unpublished works (including
                copyright in computer programs) (collectively, "Copyrights") of the
                Acquired Companies or owned, used or licenced by any Acquired Company
                as
                licencee or licensor; 

            

    

    

    
      	 	
              (d)

            	
              all
                know-how, trade secrets, confidential information, customer lists,
                software, technical information, data, database rights, process
                tech-nology, plans, drawings, and blue prints (collectively, "Trade
                Secrets") of the Acquired Company or owned, used, or licensed by
                any
                Acquired Company as licensee or licensor;
                and

            

    

    

    
      	 	
              (e)

            	
              and
                all other intellectual property rights of a similar or corresponding
                character (including all associated goodwill), enforceable anywhere
                in the
                world (whether or not the same are registered or capable of registration)
                and all applications for, or for the protection of any of the foregoing.
                

            

    

    

    
      	
            	(ii)	
              Agreements.
                Part 4.24(ii) of the Disclosure Letter contains a complete and accurate
                list and summary description, including any royalties paid or received
                by
                the Acquired Companies, of all Contracts relating to the Intellectual
                Property Assets to which any Acquired Company is a party or by which
                any
                Acquired Company is bound, except for any license implied by the
                sale of a
                product and perpetual, paid-up licenses for commonly available software
                programs with a value of less than €1,269.74 under which an Acquired
                Company is the licensee. There are no outstanding and, to Vendors'
                Knowledge, no Threatened disputes or disagreements with respect to
                any
                such agreement.

            

    

     

     

    
      
         

      

      
        81

        
          

        

      

      
         

      

    

     

    
      	 	
              (iii)
                

            	
              Know-How
                Necessary for the Business.

            

    

    

    
      	
            	(a)	
              The
                Intellectual Property Assets are to the Knowledge of the Vendors
                all those
                necessary for the operation of the Acquired Companies' businesses
                as they
                are currently conducted. One or more of the Acquired Companies is
                the
                owner of all right, title, and interest in and to, or has the right
                to
                use, each of the Intellectual Property Assets, free and clear of
                all
                liens, security interests, charges, encumbrances, equities, and other
                adverse claims, and has to the knowledge of the Vendors the right
                to use
                without payment to a third party all of the Intellectual Property
                Assets.

            

    

    

    
      	 	
              (b)

            	
              Except
                as set forth in Part 4.24(iii)(b) of the Disclosure Letter, all former
                and
                current employees of each Acquired Company have executed written
                Contracts
                with one or more of the Acquired Companies that assign to one or
                more of
                the Acquired Companies all rights to any inventions, improvements,
                discoveries, or information relating to the business of any Acquired
                Company. To Vendors’ Knowledge, no employee of any Acquired Company has
                entered into any Contract that restricts or limits in any way the
                scope or
                type of work in which the employee may be engaged or requires the
                employee
                to transfer, assign, or disclose information concerning his work
                to anyone
                other than one or more of the Acquired
                Companies.

            

    

    

    
      	
            	(iv)	
              Patents.

            

    

    

    
      	
            	(a)	
              Part
                4.24(iv) of the Disclosure Letter contains a complete and accurate
                list
                and summary description of all Patents. One or more of the Acquired
                Companies is the owner of all right, title, and interest in and to
                each of
                the Patents, free and clear of all liens, security interests, charges,
                encumbrances, entities, and other adverse
                claims.

            

    

    

    
      	 	
              (b)

            	
              All
                of the issued Patents are currently in compliance with formal legal
                requirements (including payment of filing, examination, and maintenance
                fees and proofs of working or use), are valid and enforceable, and
                are not
                subject to any maintenance fees or taxes or actions falling due within
                ninety days after the Completion
                Date.

            

    

    

    
      	 	
              (c)

            	
              No
                Patent has been or is now involved in any interfer-ence, reissue,
                reexamination, or opposition proceeding. To Vendors' Knowledge, there
                is
                no potentially interfering patent or patent application of any third
                party.

            

    

     

     

    
      
         

      

      
        82

        
          

        

      

      
         

      

    

     

    
      	 	
              (d)

            	
              No
                Patent is, to Vendors' Knowledge, infringed or has been challenged
                or
                threatened in any way. To Vendors Knowledge, none of the products
                manufactured and sold, nor any process or know-how used, by any Acquired
                Company infringes or is to Vendors Knowledge alleged to infringe
                any
                patent or other proprietary right of any other
                Person.

            

    

    

    
      	 	
              (e)

            	
              All
                products made, used, or sold under the Patents have been marked with
                the
                proper patent notice.

            

    

    

    
      	
            	(v)	
              Trademarks.

            

    

    

    
      	
            	(a)	
              Part
                4.24(v) of Disclosure Letter contains a complete and accurate list
                and
                summary description of all Marks. One or more of the Acquired Companies
                is
                the owner of all right, title, and interest in and to each of the
                Marks,
                free and clear of all liens, security interests, charges, encumbrances,
                equities, and other adverse claims.

            

    

    

    
      	 	
              (b)

            	
              All
                Marks that have been registered with any Governmental Body are currently
                in compliance with all formal legal requirements (including the timely
                post-registration filing of affidavits of use and incontestability
                and
                renewal applications), are valid and enforceable, and are not subject
                to
                any maintenance fees or taxes or actions falling due within ninety
                days
                after the Completion Date.

            

    

    

    
      	 	
              (c)

            	
              No
                Mark has been or is now involved in any opposition, invalidation,
                or
                cancellation and, to Vendors' Knowledge, no such action is Threatened
                with
                the respect to any of the Marks.

            

    

    

    
      	 	
              (d)

            	
              To
                Vendors' Knowledge, there is no potentially interfer-ing trademark
                or
                trademark application of any third
                party.

            

    

    

    

    
      	 	
              (e)

            	
              No
                Mark is, to Vendors' Knowledge, infringed or has been challenged
                or
                threatened in any way. None of the Marks used by any Acquired Company
                infringes or is to Vendors Knowledge alleged to infringe any trade
                name,
                trademark, or service mark of any third
                party.

            

    

    

    
      	 	
              (f)

            	
              All
                products and materials containing a Mark bear the proper registration
                notice where permitted by law.

            

    

    

    
      	
            	(vi)	
              Copyrights.

            

    

    

    
      	
            	(a)	
              Part
                4.24(vi) of the Disclosure Letter contains a complete and accurate
                list
                and summary description of all Copyrights. One or more of the Acquired
                Companies is the owner of all right, title, and interest in and to
                each of
                the Copyrights, free and clear of all liens, security interests,
                charges,
                encumbrances, equities, and other adverse
                claims.

            

    

     

     

    
      
         

      

      
        83

        
          

        

      

      
         

      

    

     

    
      	 	
              (b)

            	
              All
                the Copyrights have been registered and are currently in compliance
                with
                formal legal requirements, are valid and
                enforceable.

            

    

    

    
      	 	
              (c)

            	
              No
                Copyright is, to Vendors' Knowledge, infringed or has been challenged
                or
                threatened in any way. None of the subject matter of any of the Copyrights
                infringes or is to Vendors Knowledge alleged to infringe any copyright
                of
                any third party or is a derivative work based on the work of a third
                party.

            

    

    

    
      	 	
              (d)

            	
              All
                works encompassed by the Copyrights have been marked with the proper
                copyright notice.

            

    

    

    
      	
            	(vii)	
              Trade
                Secrets.

            

    

    

    
      	 	
              (a)

            	
              With
                respect to each Trade Secret, the documentation relating to such
                Trade
                Secret is current, accurate, and sufficient in detail and content
                to
                identify and explain it and to allow its full and proper use without
                reliance on the knowledge or memory of any
                individual.

            

    

    

    
      	 	
              (b)

            	
              Vendors
                and the Acquired Companies have taken all rea-sonable precautions
                to
                protect the secrecy, confidentiality, and value of their Trade
                Secrets.

            

    

    

    
      	 	
              (c)

            	
              One
                or more of the Acquired Companies has good title and an absolute
                (but not
                necessarily exclusive) right to use the Trade Secrets. The Trade
                Secrets
                are not part of the public knowledge or literature, and, to Vendors'
                Knowledge, have not been used, divulged, or appropriated either for
                the
                benefit of any Person (other than one or more of the Acquired Companies)
                or to the detriment of the Acquired Companies. To Vendors Knowledge
                no
                Trade Secret is subject to any adverse claim or has been challenged
                or
                threatened in any way.

            

    

    

    
      	
            	(vii)	
              Data
                Protection Acts.

            

    

    

    (a)
      The
      Company has obtained and maintained in force each registration under the Data
      Protection Acts, 1988 and 2003, (together the “Data Protection Acts”) necessary
      or appropriate in relation to the Business including, without limitation, each
      registration relating to the obtaining, holding, processing, transfer and
      disclosure of personal data effected by the Company.

    

    (b)
      The
      Company has in respect of personal data relating to its business at all times
      complied with the Data Protection Principles contained in the Data Protection
      Acts, as amended.

    

    
      	 	
              4.25

            	
              CERTAIN
                PAYMENTS. No Acquired Company or director, officer, agent, or employee
                of
                any Acquired Company, any other Person associated with or acting
                for or on
                behalf of any Acquired Company, has directly or indirectly (a) made
                any
                contribution, gift, bribe, rebate, payoff, influence payment, kick-back,
                or other payment to any Person, private or public, regardless of
                form,
                whether in money, property, or services (i) to obtain favourable
                treatment
                in securing business, (ii) to pay for favourable treatment for business
                secured, (iii) to obtain special concessions or for special concessions
                already obtained, for or in respect of any Acquired Company or any
                Affiliate of an Acquired Company, or (iv) in violation of any Legal
                Requirement, (b) established or maintained any fund or asset that
                has not
                been recorded in the books and records of the Acquired
                Companies.

            

    

     

     

    
      
         

      

      
        84

        
          

        

      

      
         

      

    

     

    
      	 	
              4.26

            	
              RELATIONSHIPS
                WITH RELATED PERSONS. No Vendor or any Related Person of Vendors
                or of any
                Acquired Company has, or since January 1, 2004 has had, any interest
                in
                any property (whether real, personal, or mixed and whether tangible
                or
                intangible), used in or pertaining to the Acquired Companies' businesses.
                No Vendor or any Related Person of Vendors or of any Acquired Company
                is,
                or since January 1, 2004 has owned (of record or as a beneficial
                owner) an
                equity interest or any other financial or profit interest in, a Person
                that has (i) had business dealings or a material financial interest
                in any
                transaction with any Acquired Company other than business dealings
                or
                transactions conducted in the Ordinary Course of Business with the
                Acquired Companies at substantially prevailing market prices and
                on
                substantially prevailing market terms, or (ii) engaged in competition
                with
                any Acquired Company with respect to any line of the products or
                services
                of such Acquired Company (a "Competing Business") in any market presently
                served by such Acquired Company except for less than one percent
                of the
                outstanding capital stock of any Competing Business that is publicly
                traded on any recognised exchange or in the over-the-counter market.
                Except as set forth in Part 4.26 of the Disclosure Letter, no Vendor
                or to
                Vendors Knowledge any Related Person of Vendors or of any Acquired
                Company
                is a party to any Contract, other than employment contracts with
                the
                Acquired Companies with, or has any claim or right against, any Acquired
                Company.

            

    

    

    
      	
            	4.27	
              BROKERS
                OR FINDERS. Vendors and their agents have incurred no obligation
                or
                liability, contingent or otherwise, for brokerage or finders' fees
                or
                agents' commissions or other similar payment in connection with this
                Agreement other than any fees payable to William Blair & Company,
                which shall be the sole obligation of
                Vendors.

            

    

     

    
      	
            	4.28	
              From
                time to time following the date hereof, Vendors and Purchaser shall,
                and
                shall cause their respective Affiliates to, execute, acknowledge
                and
                deliver all such further conveyances, notices, assumptions, releases
                and
                acquittances and such other instruments, and shall take such further
                actions, as may be necessary or appropriate to assure fully to Purchaser
                and its respective successors or assigns, all of the properties,
                rights,
                titles, interests, estates, remedies, powers and privileges intended
                to be
                conveyed to Purchaser under this Agreement and the Ancillary Agreements
                and to assure fully to Vendors and their successors and assigns,
                the
                assumption of the liabilities and obligations intended to be assumed
                by
                Purchaser under this Agreement and the Ancillary Agreements, and
                to
                otherwise make effective the transactions contemplated hereby and
                thereby.

            

    

     

     

    
      
         

      

        85Unassociated Document

    Exhibit
      10.3

    
 

    AMENDED
      AND RESTATED CREDIT AGREEMENT (this “Agreement”),
      dated
      as of April 3, 2006 among MEASUREMENT SPECIALTIES, INC., a New Jersey
      corporation (“Borrower”);
      the
      other US Credit Parties signatory hereto; WACHOVIA
      BANK, NATIONAL ASSOCIATION, as Syndication Agent and as Lender,
      JPMORGAN
      CHASE BANK, N.A., as Documentation Agent and as Lender,
      GENERAL
      ELECTRIC CAPITAL CORPORATION, a Delaware corporation (in its individual
      capacity, “GE
      Capital”),
      for
      itself, as Lender, and as Agent for Lenders, and the other Lenders signatory
      hereto from time to time. 

     

    RECITALS

     

    WHEREAS,
      Borrower, the US Credit Parties signatory thereto, the lenders signatory thereto
      (the “Existing
      Lenders”)
      and
      General Electric Capital Corporation, as agent for the Existing Lenders, are
      parties to a Credit Agreement, dated as of December 17, 2004, as amended,
      restated, supplemented or otherwise modified from time to time prior to the
      date
      hereof (the “Existing
      Credit Agreement”);
      and

     

    WHEREAS,
      pursuant to the Existing Credit Agreement, the Existing Lenders agreed to
      continue and to make certain loans and other extensions of credit to Borrower;
      and

     

    WHEREAS,
      each of the parties hereto wishes to and agrees to amend and restate the
      Existing Credit Agreement on the terms and conditions set forth herein;
      and

     

    WHEREAS,
      in connection with such amendment and restatement, Borrower has requested that
      Lenders extend revolving and term credit facilities to Borrower of up to Seventy
      Five Million Dollars ($75,000,000) in the aggregate for the purpose of funding
      a
      portion of Acquisitions (as hereinafter defined) and to provide (a) working
      capital financing for Borrower, (b) funds for other general corporate
      purposes of Borrower and (c) funds for other purposes permitted hereunder,
      including Permitted Acquisitions; and for these purposes, Lenders are willing
      to
      make and continue certain loans and other extensions of credit to Borrower
      of up
      to such amount upon the terms and conditions set forth herein; and

     

    WHEREAS,
      Borrower has agreed to continue to secure all of its obligations under the
      Loan
      Documents by granting to Agent, for the benefit of Agent and Existing Lenders,
      a
      security interest in and lien upon all of its existing and after-acquired
      personal and real property; and

     

    WHEREAS,
      certain Subsidiaries of Borrower have guaranteed all of the obligations of
      Borrower to General Electric Capital Corporation, as agent, and Existing Lenders
      under the Loan Documents and have granted to Agent, for the benefit of Agent
      and
      Existing Lenders, a security interest in substantially all of its assets to
      secure such guaranty; and

     

    WHEREAS,
      it is the intent of the parties hereto that this Agreement not constitute a
      novation of the obligations and liabilities existing under the Existing Credit
      Agreement or evidence payment of all or any of such obligations and liabilities,
      that this Agreement amend and restate in its entirety the Existing Credit
      Agreement, and that from and after the date hereof, the Existing Credit
      Agreement be of no further force and effect except as to evidence the incurrence
      of the “Obligations” thereunder and the representations and warranties made
      thereunder.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    WHEREAS,
      capitalized terms used in this Agreement shall have the meanings ascribed to
      them in Annex
      A
      and, for
      purposes of this Agreement and the other Loan Documents, the rules of
      construction set forth in Annex A
      shall
      govern. All Annexes, Disclosure Schedules, Exhibits and other attachments
      (collectively, “Appendices”)
      hereto, or expressly identified to this Agreement, are incorporated herein
      by
      reference, and taken together with this Agreement, shall constitute but a single
      agreement. These Recitals shall be construed as part of the
      Agreement.

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants hereinafter
      contained, and for other good and valuable consideration, the parties hereto
      agree that, effective on the Closing Date, the Existing Credit Agreement shall
      be and hereby is amended and restated in its entirety to read as
      follows:

     

    1. AMOUNT
      AND TERMS OF CREDIT

     

    1.1 Credit
      Facilities.

     

    (a) Revolving
      Credit Facility.

     

    (i) Subject
      to the terms and conditions hereof, each Revolving Lender agrees to make
      available to Borrower from time to time until the Commitment Termination Date
      its Pro Rata Share of advances (each, a “Revolving
      Credit Advance”).
      The
      Pro Rata Share of the Revolving Loan of any Revolving Lender shall not at any
      time exceed its separate Revolving Loan Commitment. The obligations of each
      Revolving Lender hereunder shall be several and not joint. Until the Commitment
      Termination Date, Borrower may borrow, repay and reborrow under this
Section 1.1(a);
      provided
      that the
      amount of any Revolving Credit Advance to be made at any time shall not exceed
      Borrowing Availability at such time. Each Revolving Credit Advance shall be
      made
      on notice by Borrower to one of the representatives of Agent identified in
      Schedule
      1.1
      at the
      address specified therein. Any such notice must be given no later than (1)
      11:00
      a.m. (New York time) on the Business Day of the proposed Revolving Credit
      Advance, in the case of an Index Rate Loan, or (2) 11:00 a.m. (New York time)
      on
      the date which is 3 Business Days prior to the proposed Revolving Credit
      Advance, in the case of a LIBOR Loan. Each such notice (a “Notice
      of Revolving Credit Advance”)
      must
      be given in writing (by telecopy or overnight courier) substantially in the
      form
      of Exhibit
      1.1(a)(i),
      and
      shall include the information required in such Exhibit and such other
      information as may be required by Agent; provided that unless otherwise
      consented to by Agent Borrower shall not be entitled to give a Notice of
      Revolving Credit Advance more than once in any calendar week. If Borrower
      desires to have the Revolving Credit Advances bear interest by reference to
      a
      LIBOR Rate, it must comply with Section
      1.5(e).

     

    (ii) Except
      as
      provided in Section
      1.12,
      Borrower shall execute and deliver to each Revolving Lender a note to evidence
      the Revolving Loan Commitment of that Revolving Lender. Each note shall be
      in
      the principal amount of the Revolving Loan Commitment of the applicable
      Revolving Lender, dated the Closing Date and substantially in the form of
Exhibit
      1.1(a)(ii)
      (each a
“Revolving
      Note”
and,
      collectively, the “Revolving
      Notes”).
      Each
      Revolving Note shall represent the obligation of Borrower to pay the amount
      of
      Revolving Lender’s Revolving Loan Commitment or, if less, such Revolving
      Lender’s Pro Rata Share of the aggregate unpaid principal amount of all
      Revolving Credit Advances to Borrower together with interest thereon as
      prescribed in Section
      1.5.
      The
      entire unpaid balance of the Revolving Loan and all other non-contingent
      Obligations (other than Rate Management Obligations) shall be immediately due
      and payable in full in immediately available funds on the Commitment Termination
      Date. Subject to the terms and conditions hereof, each Lender agrees on the
      Closing Date to exchange its Revolving Note (as defined in the Existing Credit
      Agreement) for such Lender’s Revolving Note issued pursuant to the terms hereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (b) Term
      Loan.

     

    (i) Subject
      to the terms and conditions hereof, each Term Lender agrees to make a term
      loan
      (collectively, the “Term
      Loan”)
      on the
      Closing Date to Borrower in the original principal amount of its Term Loan
      Commitment. The obligations of each Term Lender hereunder shall be several
      and
      not joint. The Term Loan shall be evidenced by promissory notes substantially
      in
      the form of Exhibit
      1.1(b)
      (each a
“Term
      Note”
and
      collectively the “Term
      Notes”),
      and,
      except as provided in Section
      1.12,
      Borrower shall execute and deliver each Term Note to the applicable Term Lender.
      Each Term Note shall represent the obligation of Borrower to pay the amount
      of
      the applicable Term Lender’s Term Loan Commitment, together with interest
      thereon as prescribed in Section
      1.5.

     

    Borrower
      shall repay the principal amount of the Term Loan (a) in nineteen equal
      quarterly installments, each in the amount of $500,000, on the first day of
      March, June, September and December of each year, commencing June 1, 2006,
      and
      (b) in a final installment due on April 3, 2011 shall be in the amount of
      $10,500,000 or, if different, the remaining principal balance of the Term
      Loan.

     

    (ii) Notwithstanding
      Section
      1.2(b)(ii),
      the
      aggregate outstanding principal balance of the Term Loan shall be due and
      payable in full in immediately available funds on the Commitment Termination
      Date, if not sooner paid in full. No payment with respect to the Term Loan
      may
      be reborrowed.

     

    (iii) Each
      payment of principal with respect to the Term Loan shall be paid to Agent for
      the ratable benefit of each Term Lender, ratably in proportion to each such
      Term
      Lender’s respective Term Loan Commitment.

     

    (c) Reliance
      on Notices.
      Agent
      shall be entitled to rely upon, and shall be fully protected in relying upon,
      any Notice of Revolving Credit Advance, Notice of Conversion/Continuation or
      similar notice believed by Agent to be genuine. Agent may assume that each
      Person executing and delivering any notice in accordance herewith was duly
      authorized, unless the responsible individual acting thereon for Agent has
      actual knowledge to the contrary.

     

    (d) Loans
      Under Existing Credit Agreement.
      The US
      Credit Parties acknowledge and agree that as of the Closing Date (i) the
      outstanding principal amount of Revolving Credit Advances under the Existing
      Credit Agreement equals $3,500,000 and that such Revolving Credit Advances
      are
      continued as Revolving Credit Advances hereunder; (ii) the outstanding principal
      amount of the Term Loan under the Existing Credit Agreement equals $17,500,000
      and that such Term Loan is continued as the Term Loan hereunder; and (iii)
      Letters of Credit are outstanding under the Existing Credit Agreement having
      a
      stated amount of $0 and such Letters of Credit are continued as Letters of
      Credit hereunder. All Term Loan Commitments and Revolving Loan Commitments
      under
      the Existing Credit Agreement shall hereinafter be assigned and re-allocated
      among the Term Loan Commitments and Revolving Loan Commitments hereunder, and
      after giving effect hereto, the percentages of the Commitments are as set forth
      on Annex
      J
      hereto.
      Notwithstanding anything set forth herein to the contrary, in order to effect
      the continuation of the outstanding Loans contemplated by the preceding
      sentence, the amount to be funded on the Closing Date by each Lender hereunder
      in respect of its Commitments shall be reduced by the principal amount of such
      Lender’s Loans under the Existing Credit Agreement outstanding on the Closing
      Date.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    1.2 Letters
      of Credit.
      Subject
      to and in accordance with the terms and conditions contained herein and in
      Annex
      B,
      Borrower shall have the right to request, and Revolving Lenders agree to incur,
      or purchase participations in, Letter of Credit Obligations in respect of
      Borrower.

     

    1.2A Swap
      Related Reimbursement Obligations.
      

     

    (a) Borrower
      agrees to reimburse GE Capital in immediately available funds in the amount
      of
      any payment made by GE Capital under a Swap Related L/C (such reimbursement
      obligation, whether contingent upon payment by GE Capital under the Swap Related
      L/C or otherwise, being herein called a “Swap
      Related Reimbursement Obligation”).
      No
      Swap Related Reimbursement Obligation for any Swap Related L/C may exceed the
      amount of the payment obligations owed by Borrower under the interest rate
      protection or hedging agreement or transaction supported by the Swap Related
      L/C.

     

    (b) A
      Swap
      Related Reimbursement Obligation shall be due and payable by Borrower within
      one
      (1) Business Day after the date on which the related payment is made by GE
      Capital under the Swap Related L/C.

     

    (c) Any
      Swap
      Related Reimbursement Obligation shall, during the period in which it is unpaid,
      bear interest at the rate per annum equal to the LIBOR Rate plus one percent
      (1%), as if the unpaid amount of the Swap Related Reimbursement Obligation
      were
      a LIBOR Loan, and not at any otherwise applicable Default Rate. Such interest
      shall be payable upon demand. The following additional provisions apply to
      the
      calculation and charging of interest by reference to the LIBOR
      Rate:

     

    (i) The
      LIBOR
      Rate shall be determined for each successive one-month LIBOR Period during
      which
      the Swap Related Reimbursement Obligation is unpaid, notwithstanding the
      occurrence of any Event of Default and even if the LIBOR Period were to extend
      beyond the Commitment Termination Date.

     

    (ii) If
      a Swap
      Related Reimbursement Obligation is paid during a monthly period for which
      the
      LIBOR Rate is determined, interest shall be pro-rated and charged for the
      portion of the monthly period during which the Swap Related Reimbursement
      Obligation was unpaid. Section
      1.13(b)
      shall
      not apply to any payment of a Swap Related Reimbursement Obligation during
      the
      monthly period.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (iii) Notwithstanding
      the last paragraph of the definition of “LIBOR Rate”, if the LIBOR Rate is no
      longer available from Telerate News Service, the LIBOR Rate shall be determined
      by GE Capital from such financial reporting service or other information
      available to GE Capital as in GE Capital’s reasonable discretion indicates GE
      Capital’s cost of funds.

     

    (d) Except
      as
      provided in the foregoing provisions of this Section
      1.2A
      and in
Section
      11.3,
      Borrower shall not be obligated to pay to GE Capital or any of its Affiliates
      any Letter of Credit Fee, or any other fees, charges or expenses, in respect
      of
      a Swap Related L/C or arranging for any interest rate protection or hedging
      agreement or transaction supported by the Swap Related L/C. GE Capital and
      its
      Affiliates shall look to the beneficiary of a Swap Related L/C for payment
      of
      any such letter of credit fees or other fees, charges or expenses and such
      beneficiary may factor such fees, charges, or expenses into the pricing of
      any
      interest rate protection or hedging arrangement or transaction supported by
      the
      Swap Related L/C.

     

    (e) If
      any
      Swap Related L/C is revocable prior to its scheduled expiry date, GE Capital
      agrees not to revoke the Swap Related L/C unless the Commitment Termination
      Date
      or an Event of Default has occurred.

     

    (f) GE
      Capital or any of its Affiliates shall be permitted to (i) provide confidential
      or other information furnished to it by any of the Credit Parties (including,
      without limitation, copies of any documents and information in or referred
      to in
      the Closing Checklist, Financial Statements and Compliance Certificates) to
      a
      beneficiary or potential beneficiary of a Swap Related L/C and (ii) receive
      confidential or other information from the beneficiary or potential beneficiary
      relating to any agreement or transaction supported or to be supported by the
      Swap Related L/C. However, no confidential information shall be provided to
      any
      Person under this paragraph unless the Person has agreed to comply with the
      covenant substantially as contained in Section
      11.8
      of this
      Agreement.

     

    1.3 Prepayments.

     

    (a) Voluntary
      Prepayments.
      Borrower may at any time on at least 5 days’ prior written notice to Agent
      voluntarily prepay all or part of the Term Loan; provided
      that any
      such prepayments shall be in a minimum amount of $500,000 and integral multiples
      of $250,000 in excess of such amount. In addition, Borrower may at any time
      on
      at least 10 days’ prior written notice to Agent terminate the Revolving Loan
      Commitment; provided
      that
      upon such termination, all Loans and other Obligations (other than Rate
      Management Obligations) shall be immediately due and payable in full and all
      Letter of Credit Obligations shall be cash collateralized or otherwise satisfied
      in accordance with Annex B.
      Any
      such voluntary prepayment and any such termination of the Revolving Loan
      Commitment must be accompanied by the payment of the Fee required by
Section
      1.9(c),
      if any,
      plus the payment of any LIBOR funding breakage costs in accordance with
Section
      1.13(b).
      Upon
      any such prepayment and termination of the Revolving Loan Commitment, Borrower’s
      right to request Revolving Credit Advances, or request that Letter of Credit
      Obligations be incurred on its behalf, shall simultaneously be terminated.
      Any
      partial prepayments of the Term Loan made by Borrower shall be applied to prepay
      the scheduled installments of the Term Loan in inverse order of
      maturity.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b) Mandatory
      Prepayments.

     

    (i) If
      at any
      time the outstanding balances of the Revolving Loan exceed the Maximum Amount,
      Borrower shall immediately repay the aggregate outstanding Revolving Credit
      Advances to the extent required to eliminate such excess. If any such excess
      remains after repayment in full of the aggregate outstanding Revolving Credit
      Advances, Borrower shall provide cash collateral for the Letter of Credit
      Obligations in the manner set forth in Annex
      B
      to the
      extent required to eliminate such excess.

     

    (ii) Immediately
      upon receipt by any Credit Party of any payment under the Acquisition
      Agreements with respect to any material claim or adjustment related to fixed
      assets of the acquired entities or
      proceeds of any asset disposition (excluding (a) proceeds of asset dispositions
      permitted by Section
      6.8(a),
      (b)
      proceeds of asset dispositions permitted by Sections
      6.8(b) and (c)
      in an
      aggregate amount not exceeding $500,000 in any Fiscal Year,
      (c)
      proceeds of asset dispositions permitted by Sections
      6.8(b) and (c)
      or
      Acquisition Agreements with respect to any material claim or adjustment related
      to fixed assets of the acquired entities which are used to purchase Equipment,
      Fixtures or Real Estate
      to
      replace the Equipment, Fixtures or Real Estate so disposed within 90 days of
      such disposition, and (d) proceeds from the disposition of the consumer products
      division permitted by that certain Consent dated as of November 30, 2005 among
      Borrower, the other Credit Parties, Agent and Lenders) or any sale of Stock
      of
      any Subsidiary of any Credit Party, Borrower shall prepay the Loans in an amount
      equal to all such proceeds, net of (A) commissions and other reasonable and
      customary transaction costs, fees and expenses properly attributable to such
      transaction and payable by Borrower in connection therewith (in each case,
      paid
      to non-Affiliates), (B) transfer taxes, (C) amounts payable to holders of senior
      Liens (to the extent such Liens constitute Permitted Encumbrances hereunder),
      if
      any, and (D) an appropriate reserve for income taxes in accordance with GAAP
      in
      connection therewith. Any such prepayment shall be applied in accordance with
      Section
      1.3(c).

     

    (iii) If
      any
      Credit Party issues Stock (other than
      (A)
      Stock issued to finance all or a part of the purchase price of a Permitted
      Acquisition or (B) upon exercise of stock options or warrants issued pursuant
      to
      any employee benefit plan or compensation arrangement with directors, officers
      or employees) with aggregate proceeds in any Fiscal Year
      of
      greater than $1,000,000), no later than the Business Day following the date
      of
      receipt of the proceeds thereof, Borrower shall prepay the Loans in an amount
      equal to all such excess proceeds, net of underwriting discounts and commissions
      and other reasonable costs paid to non-Affiliates in connection therewith.
      Any
      such prepayment shall be applied in accordance with Section
      1.3(c).

     

    (c) Application
      of Certain Mandatory Prepayments.
      Any
      prepayments made by Borrower pursuant to Sections
      1.3(b)(ii) or (b)(iii)
      above
      and any prepayments from insurance or condemnation proceeds in accordance with
      Section
      5.4(f)
      shall be
      applied as follows: first,
      to Fees
      and reimbursable expenses of Agent then due and payable pursuant to any of
      the
      Loan Documents; second,
      to
      interest then due and payable on the Term Loan; third,
      to
      prepay the scheduled principal installments of the Term Loan in inverse order
      of
      maturity, until such Term Loan shall have been prepaid in full; fourth,
      to
      interest then due and payable on the Revolving Credit Advances; fifth,
      to the
      outstanding principal balance of Revolving Credit Advances until the same has
      been paid in full; and sixth,
      to any
      Letter of Credit Obligations, to provide cash collateral therefor in the manner
      set forth in Annex
      B,
      until
      all such Letter of Credit Obligations have been fully cash collateralized in
      the
      manner set forth in Annex
      B.
      The
      Revolving Loan Commitment shall not be permanently reduced by the amount of
      any
      such prepayments.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (d) No
      Implied Consent.
      Nothing
      in this Section
      1.3
      shall be
      construed to constitute Agent’s or any Lender’s consent to any transaction that
      is not permitted by other provisions of this Agreement or the other Loan
      Documents.

     

    1.4 Use
      of
      Proceeds.
      Borrower shall utilize the proceeds of the Term Loan and the Revolving Loan
      solely for the Acquisition (and to pay any related transaction expenses), and
      for the financing of Borrower’s ordinary working capital and general corporate
      needs. Disclosure
      Schedule (1.4)
      contains
      a description of Borrower’s sources and uses of funds as of the Closing Date,
      including Loans and Letter of Credit Obligations to be made or incurred on
      that
      date, and a funds flow memorandum detailing how funds from each source are
      to be
      transferred to particular uses.

     

    1.5 Interest
      and Applicable Margins.

     

    (a) Borrower
      shall pay interest to Agent, for the ratable benefit of Lenders in accordance
      with the various Loans being made by each Lender, in arrears on each applicable
      Interest Payment Date, at the following rates: (i) with respect to the Revolving
      Credit Advances, the Index Rate plus the Applicable Revolver Index Margin per
      annum or, at the election of Borrower, the applicable LIBOR Rate plus the
      Applicable Revolver LIBOR Margin per annum, based on the aggregate Revolving
      Credit Advances outstanding from time to time; and (ii) with respect to the
      Term
      Loan, the Index Rate plus the Applicable Term Loan Index Margin per annum or,
      at
      the election of Borrower, the applicable LIBOR Rate plus the Applicable Term
      Loan LIBOR Margin per annum.

     

    As
      of the
      Closing Date the Applicable Margins are as follows:

     

    
      	
              Applicable
                Revolver Index Margin

            	
              1.00%

            
	 	 
	
              Applicable
                Revolver LIBOR Margin

            	
              2.75%

            
	 	 
	
              Applicable
                Term Loan Index Margin

            	
              1.00%

            
	 	 
	
              Applicable
                Term Loan LIBOR Margin

            	
              2.75%

            
	 	 
	
              Applicable
                L/C Margin

            	
              2.75%

            

    

     

    The
      Applicable Margins may be adjusted by reference to the following
      grids:

     

    
      	
              If
                Senior Leverage Ratio is:

            	
              Level
                of

              Applicable
                Margins:

            
	
              <
                2.00:1.00

            	
              Level
                I

            
	
              >
                2.00:1:00

            	
              Level
                II

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    
      	 	
              Applicable
                Margins

            
	 	
              Level
                I

            	
              Level
                II

            
	
              Applicable
                Revolver Index Margin

            	
              0.50%

            	
              1.00%

            
	
              Applicable
                Revolver LIBOR Margin

            	
              2.25%

            	
              2.75%

            
	
              Applicable
                Term Loan Index Margin

            	
              0.50%

            	
              1.00%

            
	
              Applicable
                Term Loan LIBOR Margin

            	
              2.25%

            	
              2.75%

            
	
              Applicable
                L/C Margin

            	
              2.25%

            	
              2.75%

            

    

    

    Adjustments
      in the Applicable Margins commencing with the Fiscal Quarter ending September
      30, 2006 shall be implemented quarterly on a prospective basis, for each
      calendar month commencing not more than five (5) days after the date of delivery
      to Lenders of the quarterly unaudited or annual audited (as applicable)
      Financial Statements evidencing the need for an adjustment. Concurrently with
      the delivery of those Financial Statements, Borrower shall deliver to Agent
      and
      Lenders a certificate, signed by its chief financial officer, setting forth
      in
      reasonable detail the basis for the continuance of, or any change in, the
      Applicable Margins. Failure to timely deliver such Financial Statements shall,
      in addition to any other remedy provided for in this Agreement, result in an
      increase in the Applicable Margins to the highest level set forth in the
      foregoing grid, until the first day of the first calendar month following the
      delivery of those Financial Statements demonstrating that such an increase
      is
      not required. If an Event of Default has occurred and is continuing at the
      time
      any reduction in the Applicable Margins is to be implemented, that reduction
      shall be deferred until the first day of the first calendar month following
      the
      date on which such Event of Default is waived or cured.

     

    (b) If
      any
      payment on any Loan becomes due and payable on a day other than a Business
      Day,
      the maturity thereof will be extended to the next succeeding Business Day
      (except as set forth in the definition of LIBOR Period) and, with respect to
      payments of principal, interest thereon shall be payable at the then applicable
      rate during such extension.

     

    (c) All
      computations of Fees calculated on a per annum basis and interest shall be
      made
      by Agent on the basis of a 360-day year, in each case for the actual number
      of
      days occurring in the period for which such interest and Fees are payable.
      The
      Index Rate is a floating rate determined for each day. Each determination by
      Agent of an interest rate and Fees hereunder shall be final, binding and
      conclusive on Borrower, absent manifest error.

     

    (d) So
      long
      as any Event of Default has occurred and is continuing under Section
      8.1
      (h) or
      (i), or so long as any other Default or Event of Default has occurred and is
      continuing and at the election of Agent (or upon the written request of
      Requisite Lenders) confirmed by written notice from Agent to Borrower, the
      interest rates applicable to the Loans and the Letter of Credit Fees shall
      be
      increased by two percentage points (2%) per annum above the rates of interest
      or
      the rate of such Fees otherwise applicable hereunder (“Default
      Rate”),
      and
      all outstanding Obligations shall bear interest at the Default Rate applicable
      to such Obligations. Interest and Letter of Credit Fees at the Default Rate
      shall accrue from the initial date of such Default or Event of Default until
      that Default or Event of Default is cured or waived and shall be payable upon
      demand.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (e) Subject
      to the conditions precedent set forth in Section
      2.2,
      Borrower shall have the option to (i) request that any Revolving Credit Advance
      be made as a LIBOR Loan, (ii) convert at any time all or any part of outstanding
      Loans from Index Rate Loans to LIBOR Loans, (iii) convert any LIBOR Loan to
      an
      Index Rate Loan, subject to payment of LIBOR breakage costs in accordance with
      Section
      1.13(b)
      if such
      conversion is made prior to the expiration of the LIBOR Period applicable
      thereto, or (iv) continue all or any portion of any Loan as a LIBOR Loan upon
      the expiration of the applicable LIBOR Period and the succeeding LIBOR Period
      of
      that continued Loan shall commence on the first day after the last day of the
      LIBOR Period of the Loan to be continued. Any Loan or group of Loans having
      the
      same proposed LIBOR Period to be made or continued as, or converted into, a
      LIBOR Loan must be in a minimum amount of $500,000 and integral multiples of
      $500,000 in excess of such amount. Any such election must be made by 11:00
      a.m.
      (New York time) on the 3rd Business Day prior to (1) the date of any
      proposed Advance which is to bear interest at the LIBOR Rate, (2) the end of
      each LIBOR Period with respect to any LIBOR Loans to be continued as such,
      or
      (3) the date on which Borrower wishes to convert any Index Rate Loan to a
      LIBOR Loan for a LIBOR Period designated by Borrower in such election. If no
      election is received with respect to a LIBOR Loan by 11:00 a.m. (New York time)
      on the 3rd Business Day prior to the end of the LIBOR Period with respect
      thereto (or if a Default or an Event of Default has occurred and is continuing
      or the additional conditions precedent set forth in Section
      2.2
      shall
      not have been satisfied), that LIBOR Loan shall be converted to an Index Rate
      Loan at the end of its LIBOR Period. Borrower must make such election by notice
      to Agent in writing, by telecopy or overnight courier. In the case of any
      conversion or continuation, such election must be made pursuant to a written
      notice (a “Notice
      of Conversion/Continuation”)
      in the
      form of Exhibit 1.5(e). No Loan may be made as or converted into a LIBOR Loan
      until the earlier of (i) 30 days after the Closing Date or (ii) completion
      of primary syndication as determined by Agent.

     

    (f) Notwithstanding
      anything to the contrary set forth in this Section 1.5,
      if a
      court of competent jurisdiction determines in a final order that the rate of
      interest payable hereunder exceeds the highest rate of interest permissible
      under law (the “Maximum
      Lawful Rate”),
      then
      so long as the Maximum Lawful Rate would be so exceeded, the rate of interest
      payable hereunder shall be equal to the Maximum Lawful Rate; provided, however,
      that if at any time thereafter the rate of interest payable hereunder is less
      than the Maximum Lawful Rate, Borrower shall continue to pay interest hereunder
      at the Maximum Lawful Rate until such time as the total interest received by
      Agent, on behalf of Lenders, is equal to the total interest that would have
      been
      received had the interest rate payable hereunder been (but for the operation
      of
      this paragraph) the interest rate payable since the Closing Date as otherwise
      provided in this Agreement. Thereafter, interest hereunder shall be paid at
      the
      rate(s) of interest and in the manner provided in Sections
      1.5(a)
      through
(e),
      unless
      and until the rate of interest again exceeds the Maximum Lawful Rate, and at
      that time this paragraph shall again apply. In no event shall the total interest
      received by any Lender pursuant to the terms hereof exceed the amount that
      such
      Lender could lawfully have received had the interest due hereunder been
      calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum
      Lawful Rate is calculated pursuant to this paragraph, such interest shall be
      calculated at a daily rate equal to the Maximum Lawful Rate divided by the
      number of days in the year in which such calculation is made. If,
      notwithstanding the provisions of this Section
      1.5(f),
      a court
      of competent jurisdiction shall finally determine that a Lender has received
      interest hereunder in excess of the Maximum Lawful Rate, Agent shall, to the
      extent permitted by applicable law, promptly apply such excess in the order
      specified in Section
      1.11
      and
      thereafter shall refund any excess to Borrower or as a court of competent
      jurisdiction may otherwise order.

     

    
      
        
        

      

      
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    1.6 [Intentionally
      Omitted].

     

    1.7 [Intentionally
      Omitted].

     

    1.8 Cash
      Management Systems.
      Borrower will maintain until the Termination Date, the cash management systems
      described in Annex
      C
      (the
“Cash
      Management Systems”).
      

     

    1.9 Fees.

     

    (a) Borrower
      shall pay to GE Capital, individually, the Fees specified in that certain fee
      letter of even date herewith between Borrower and GE Capital (the “GE
      Capital Fee Letter”),
      at
      the times specified for payment therein.

     

    (b) As
      additional compensation for the Revolving Lenders, Borrower shall pay to Agent,
      for the ratable benefit of such Lenders, in arrears, on the first Business
      Day
      of each month prior to the Commitment Termination Date and on the Commitment
      Termination Date, a Fee for Borrower’s non-use of available funds in an amount
      equal to three-eighths of one percent (0.375%) per annum (calculated on the
      basis of a 360 day year for actual days elapsed) multiplied by the difference
      between (x) the Maximum Amount (as it may be reduced from time to time) and
      (y)
      the average for the period of the daily closing balances of the Revolving Loan
      outstanding during the period for which the such Fee is due.

     

    (c) If
      Borrower pays after acceleration or prepays all or any portion of the Term
      Loan
      or the Revolving Loan Commitment is terminated, whether voluntarily or
      involuntarily and whether before or after acceleration of the Obligations (other
      than Rate Management Obligations) or if the Commitments are otherwise
      terminated, Borrower shall pay to Agent, for the benefit of Lenders as
      liquidated damages and compensation for the costs of being prepared to make
      funds available hereunder an amount equal to the Applicable Percentage (as
      defined below) multiplied by the sum of (i) the principal amount of the Term
      Loan paid after acceleration or prepaid, and (ii) if the Revolving Loan
      Commitment is terminated, the amount of the Revolving Loan Commitment. As used
      herein, the term “Applicable
      Percentage”
shall
      mean (x) one percent (1.00%), in the case of a prepayment on or prior to
      December 17, 2007, and (y) zero percent (0%), in the case of a prepayment after
      December 17, 2007. The Credit Parties agree that the Applicable Percentages
      are
      a reasonable calculation of Lenders’ lost profits in view of the difficulties
      and impracticality of determining actual damages resulting from an early
      termination of the Commitments.

     

    (d) Borrower
      shall pay to Agent, for the ratable benefit of Revolving Lenders, the Letter
      of
      Credit Fee as provided in Annex B.

     

    1.10 Receipt
      of Payments.
      Borrower shall make each payment under this Agreement not later than 2:00 p.m.
      (New York time) on the day when due in immediately available funds in Dollars
      to
      the Collection Account. For purposes of computing interest and Fees, all
      payments shall be deemed received on the third Business Day following the
      Business Day on which immediately available funds therefor are received in
      the
      Collection Account prior to 2:00 p.m. New York time. Payments received after
      2:00 p.m. New York time on any Business Day or on a day that is not a Business
      Day shall be deemed to have been received on the following Business
      Day.

     

    
      
        
        

      

      
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    1.11 Application
      and Allocation of Payments.

     

    (a) So
      long
      as no Default or Event of Default has occurred and is continuing, (i) payments
      matching specific scheduled payments then due shall be applied to those
      scheduled payments; (ii) voluntary prepayments shall be applied as determined
      by
      Borrower, subject to the provisions of Section
      1.3(a);
      and
      (iii) mandatory prepayments shall be applied as set forth in Section
      1.3(c).
      All
      payments and prepayments applied to a particular Loan shall be applied ratably
      to the portion thereof held by each Lender as determined by its Pro Rata Share.
      As to any other payment, and as to all payments made when a Default or Event
      or
      Default has occurred and is continuing or following the Commitment Termination
      Date (including
      all proceeds of Collateral),
      Borrower hereby irrevocably waives the right to direct the application of any
      and all payments received from or on behalf of Borrower, and Borrower hereby
      irrevocably agrees that Agent shall have the continuing exclusive right to
      apply
      any and all such payments against the Obligations as Agent may deem advisable
      notwithstanding any previous entry by Agent in the Loan Account or any other
      books and records. In the absence of a specific determination by Agent with
      respect thereto, payments (including all proceeds of Collateral), shall be
      applied to amounts then due and payable in the following order: (1) to Fees
      and
      Agent’s expenses reimbursable hereunder; (2) to interest on the other Loans,
      unpaid Swap Related Reimbursement Obligations and unpaid Interest Rate
      Management Obligations, ratably in proportion to the interest accrued as to
      each
      Loan, unpaid Swap Related Reimbursement Obligation and unpaid Interest Rate
      Management Obligations, as applicable; (3) to principal payments on the other
      Loans, unpaid Swap Related Reimbursement Obligations, unpaid Interest Rate
      Management Obligations and to provide cash collateral for Letter of Credit
      Obligations in the manner described in Annex
      B,
      ratably
      to the aggregate, combined principal balance of the other Loans, unpaid Swap
      Related Reimbursement Obligations, unpaid Interest Rate Management Obligations
      and outstanding Letter of Credit Obligations; and; (4) to all other Obligations,
      including expenses of Lenders to the extent reimbursable under Section
      11.3,
      but
      excluding Other Rate Management Obligations; and (5) to any Other Rate
      Management Obligations (on a ratable basis based upon respective amounts
      thereof).

     

    (b) Agent
      is
      authorized to, and at its sole election may, charge to the Revolving Loan
      balance on behalf of Borrower and cause to be paid all Fees, expenses, Charges,
      costs (including insurance premiums in accordance with Section
      5.4(a))
      and
      interest and principal, other than principal of the Revolving Loan, owing by
      Borrower under this Agreement or any of the other Loan Documents if and to
      the
      extent Borrower fails to pay promptly any such amounts as and when due. At
      Agent’s option and to the extent permitted by law, any charges so made shall
      constitute part of the Revolving Loan hereunder.

     

    1.12 Loan
      Account and Accounting.
      Agent
      shall maintain a loan account (the “Loan
      Account”)
      on its
      books to record: all Advances and the Term Loan, all payments made by Borrower,
      and all other debits and credits as provided in this Agreement with respect
      to
      the Loans or any other Obligations (other than Rate Management Obligations).
      All
      entries in the Loan Account shall be made in accordance with Agent’s customary
      accounting practices as in effect from time to time. The balance in the Loan
      Account, as recorded on Agent’s most recent printout or other written statement,
      shall, absent manifest error, be presumptive evidence of the amounts due and
      owing to Agent and Lenders by Borrower; provided
      that any
      failure to so record or any error in so recording shall not limit or otherwise
      affect Borrower’s duty to pay the Obligations. Agent shall render to Borrower a
      monthly accounting of transactions with respect to the Loans setting forth
      the
      balance of the Loan Account for the immediately preceding month. Unless Borrower
      notifies Agent in writing of any objection to any such accounting (specifically
      describing the basis for such objection), within 30 days after the date thereof,
      each and every such accounting shall, absent manifest error, be deemed final,
      binding and conclusive on Borrower in all respects as to all matters reflected
      therein. Only those items expressly objected to in such notice shall be deemed
      to be disputed by Borrower. Notwithstanding any provision herein contained
      to
      the contrary, any Lender may elect (which election may be revoked) to dispense
      with the issuance of Notes to that Lender and may rely on the Loan Account
      as
      evidence of the amount of Obligations (other than Rate Management Obligations)
      from time to time owing to it.

     

    
      
        
        

      

      
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    1.13 Indemnity.

     

    (a) Each
      US
      Credit Party that is a signatory hereto shall jointly and severally indemnify
      and hold harmless each of Agent, Lenders and their respective Affiliates, and
      each such Person’s respective officers, directors, employees, attorneys, agents
      and representatives (each, an “Indemnified
      Person”),
      from
      and against any and all suits, actions, proceedings, claims, damages, losses,
      liabilities and expenses (including reasonable attorneys’ fees and disbursements
      and other costs of investigation or defense, including those incurred upon
      any
      appeal) that may be instituted or asserted against or incurred by any such
      Indemnified Person as the result of credit having been extended, suspended
      or
      terminated under this Agreement and the other Loan Documents and the
      administration of such credit, and in connection with or arising out of the
      transactions contemplated hereunder and thereunder and any actions or failures
      to act in connection therewith, including any and all Environmental Liabilities
      and legal costs and expenses arising out of or incurred in connection with
      disputes between or among any parties to any of the Loan Documents
      (collectively, “Indemnified
      Liabilities”);
      provided, that no such US Credit Party shall be liable for any indemnification
      to an Indemnified Person to the extent that any such suit, action, proceeding,
      claim, damage, loss, liability or expense results from that Indemnified Person’s
      gross negligence or willful misconduct. NO INDEMNIFIED PERSON SHALL BE
      RESPONSIBLE OR LIABLE TO ANY OTHER PARTY TO ANY LOAN DOCUMENT, ANY SUCCESSOR,
      ASSIGNEE OR THIRD PARTY BENEFICIARY OF SUCH PERSON OR ANY OTHER PERSON ASSERTING
      CLAIMS DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR
      CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF CREDIT HAVING BEEN
      EXTENDED, SUSPENDED OR TERMINATED UNDER ANY LOAN DOCUMENT OR AS A RESULT OF
      ANY
      OTHER TRANSACTION CONTEMPLATED HEREUNDER OR THEREUNDER.

     

    (b) To
      induce
      Lenders to provide the LIBOR Rate option on the terms provided herein, if (i)
      any LIBOR Loans are repaid in whole or in part prior to the last day of any
      applicable LIBOR Period (whether that repayment is made pursuant to any
      provision of this Agreement or any other Loan Document or occurs as a result
      of
      acceleration, by operation of law or otherwise); (ii) Borrower shall default
      in
      payment when due of the principal amount of or interest on any LIBOR Loan;
      (iii)
      Borrower shall refuse to accept any borrowing of, or shall request a termination
      of any borrowing, conversion into or continuation of LIBOR Loans after Borrower
      has given notice requesting the same in accordance herewith; or (iv) Borrower
      shall fail to make any prepayment of a LIBOR Loan after Borrower has given
      a
      notice thereof in accordance herewith, then Borrower shall indemnify and hold
      harmless each Lender from and against all losses, costs and expenses resulting
      from or arising from any of the foregoing. Such indemnification shall include
      any loss (including loss of margin) or expense arising from the reemployment
      of
      funds obtained by it or from fees payable to terminate deposits from which
      such
      funds were obtained. For the purpose of calculating amounts payable to a Lender
      under this subsection, each Lender shall be deemed to have actually funded
      its
      relevant LIBOR Loan through the purchase of a deposit bearing interest at the
      LIBOR Rate in an amount equal to the amount of that LIBOR Loan and having a
      maturity comparable to the relevant LIBOR Period; provided, that each Lender
      may
      fund each of its LIBOR Loans in any manner it sees fit, and the foregoing
      assumption shall be utilized only for the calculation of amounts payable under
      this subsection. This covenant shall survive the termination of this Agreement
      and the payment of the Notes and all other amounts payable hereunder. As
      promptly as practicable under the circumstances, each Lender shall provide
      Borrower with its written calculation of all amounts payable pursuant to this
      Section
      1.13(b),
      and
      such calculation shall be binding on the parties hereto unless Borrower shall
      object in writing within 10 Business Days of receipt thereof, specifying the
      basis for such objection in detail.

     

    
      
        
        

      

      
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    1.14 Access.
      Each
      Credit Party that is a party hereto shall, during normal business hours, from
      time to time upon 1 Business Day’s prior notice as frequently as Agent
      reasonably determines to be appropriate: (a) provide Agent and any of its
      officers, employees and agents access to its properties, facilities, advisors
      and employees (including officers) of each Credit Party and to the Collateral,
      (b) permit Agent, and any of its officers, employees and agents, to inspect,
      audit and make extracts from any Credit Party’s books and records, and (c)
      permit Agent, and its officers, employees and agents, to inspect, review,
      evaluate, and (so long as no Default or Event of Default has occurred and is
      continuing) after consultation and cooperation with such Credit Party, make
      test
      verifications and counts of the Accounts, Inventory and other Collateral of
      any
      Credit Party. If a Default or Event of Default has occurred and is continuing
      or
      if access is necessary to preserve or protect the Collateral as determined
      by
      Agent, each such Credit Party shall provide such access to Agent and to each
      Lender at all times and without advance notice. Furthermore, so long as any
      Event of Default has occurred and is continuing, Borrower shall provide Agent
      and each Lender with access to its suppliers and customers. Each Credit Party
      shall make available to Agent and its counsel, as quickly as is possible under
      the circumstances, originals or copies of all books and records that Agent
      may
      reasonably request. Each Credit Party shall deliver any document or instrument
      necessary for Agent, as it may from time to time request, to obtain records
      from
      any service bureau or other Person that maintains records for such Credit Party,
      and shall maintain duplicate records or supporting documentation on media,
      including computer tapes and discs owned by such Credit Party. Agent will give
      Lenders at least 5 days’ prior written notice of regularly scheduled audits.
      Representatives of other Lenders may accompany Agent’s representatives on
      regularly scheduled audits at no charge to Borrower.

     

    
      
        
        

      

      
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    1.15 Taxes.

     

    (a) Any
      and
      all payments by Borrower hereunder or under the Notes shall be made, in
      accordance with this Section
      1.15,
      free
      and clear of and without deduction for any and all present or future Taxes.
      If
      Borrower shall be required by law to deduct any Taxes from or in respect of
      any
      sum payable hereunder or under the Notes, (i) the sum payable shall be increased
      as much as shall be necessary so that after making all required deductions
      (including deductions applicable to additional sums payable under this
Section
      1.15)
      Agent
      or Lenders, as applicable, receive an amount equal to the sum they would have
      received had no such deductions been made, (ii) Borrower shall make such
      deductions, and (iii) Borrower shall pay the full amount deducted to the
      relevant taxing or other authority in accordance with applicable law. Within
      30
      days after the date of any payment of Taxes, Borrower shall furnish to Agent
      the
      original or a certified copy of a receipt evidencing payment thereof. Agent
      and
      Lenders shall not be obligated to return or refund any amounts received pursuant
      to this Section.

     

    (b) Each
      US
      Credit Party that is a signatory hereto shall indemnify and, within 10 days
      of
      demand therefor, pay Agent and each Lender for the full amount of Taxes
      (including any Taxes imposed by any jurisdiction on amounts payable under this
      Section
      1.15)
      paid by
      Agent or such Lender, as appropriate, and any liability (including penalties,
      interest and expenses) arising therefrom or with respect thereto, whether or
      not
      such Taxes were correctly or legally asserted.

     

    (c) Each
      Lender organized under the laws of a jurisdiction outside the United States
      (a
“Foreign
      Lender”)
      as to
      which payments to be made under this Agreement or under the Notes are exempt
      from United States withholding tax under an applicable statute or tax treaty
      shall provide to Borrower and Agent a properly completed and executed IRS Form
      W-8ECI or Form W-8BEN or other applicable form, certificate or document
      prescribed by the IRS or the United States certifying as to such Foreign
      Lender’s entitlement to such exemption (a “Certificate
      of Exemption”).
      Any
      foreign Person that seeks to become a Lender under this Agreement shall provide
      a Certificate of Exemption to Borrower and Agent prior to becoming a Lender
      hereunder. No foreign Person may become a Lender hereunder if such Person fails
      to deliver a Certificate of Exemption in advance of becoming a
      Lender.

     

    (d) Treatment
      of
      Certain Refunds.
      If
      Agent or any Lender determines, in its sole discretion, that it has received
      a
      refund of any amounts as to which it has been indemnified by a US Credit Party
      or with respect to which a US Credit Party has paid additional amounts pursuant
      to this Section, it shall pay to such US Credit Party an amount equal to such
      refund (but only to the extent of indemnity payments made, or additional amounts
      paid, by such US Credit Party under this Section with respect to the amounts
      giving rise to such refund), net of all out-of-pocket expenses of Agent or
      such
      Lender, as the case may be, and net of any taxes imposed on such refund, and
      without interest (other than any interest paid by the relevant Governmental
      Authority with respect to such refund), provided
      that the
      US Credit Parties, upon the request of Agent or such Lender, agree to repay
      the
      amount paid over to such US Credit Party (plus any penalties, interest or other
      charges imposed by the relevant Governmental Authority) to Agent or such Lender
      in the event Agent or such Lender is required to repay such refund to such
      Governmental Authority. This paragraph shall not be construed to require Agent
      or any Lender to make available its tax returns (or any other information
      relating to its taxes that it deems confidential) to the US Credit Parties
      or
      any other Person.

     

    
      
        
        

      

      
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    1.16 Capital
      Adequacy; Increased Costs; Illegality.

     

    (a) If
      any
      Lender shall have determined that any law, treaty, governmental (or
      quasi-governmental) rule, regulation, guideline or order regarding capital
      adequacy, reserve requirements or similar requirements or compliance by any
      Lender with any request or directive regarding capital adequacy, reserve
      requirements or similar requirements (whether or not having the force of law),
      in each case, adopted after the Closing Date, from any central bank or other
      Governmental Authority increases or would have the effect of increasing the
      amount of capital, reserves or other funds required to be maintained by such
      Lender and thereby reducing the rate of return on such Lender’s capital as a
      consequence of its obligations hereunder, then Borrower shall from time to
      time
      upon demand by such Lender (with a copy of such demand to Agent) pay to Agent,
      for the account of such Lender, additional amounts sufficient to compensate
      such
      Lender for such reduction. A certificate as to the amount of that reduction
      and
      showing the basis of the computation thereof submitted by such Lender to
      Borrower and to Agent shall, absent manifest error, be final, conclusive and
      binding for all purposes.

     

    (b) If,
      due
      to either (i) the introduction of or any change in any law or regulation
      (or any change in the interpretation thereof) or (ii) the compliance with
      any guideline or request from any central bank or other Governmental Authority
      (whether or not having the force of law), in each case adopted after the Closing
      Date, there shall be any increase in the cost to any Lender of agreeing to
      make
      or making, funding or maintaining any Loan, then Borrower shall from time to
      time, upon demand by such Lender (with a copy of such demand to Agent), pay
      to
      Agent for the account of such Lender additional amounts sufficient to compensate
      such Lender for such increased cost. A certificate as to the amount of such
      increased cost, submitted to Borrower and to Agent by such Lender, shall be
      conclusive and binding on Borrower for all purposes, absent manifest error.
      Each
      Lender agrees that, as promptly as practicable after it becomes aware of any
      circumstances referred to above which would result in any such increased cost,
      the affected Lender shall, to the extent not inconsistent with such Lender’s
      internal policies of general application, use reasonable commercial efforts
      to
      minimize costs and expenses incurred by it and payable to it by Borrower
      pursuant to this Section
      1.16(b).

     

    
      (c) Notwithstanding
        anything to the contrary contained herein, if the introduction of or any
        change
        in any law or regulation (or any change in the interpretation thereof) shall
        make it unlawful, or any central bank or other Governmental Authority shall
        assert that it is unlawful, for any Lender to agree to make or to make or
        to
        continue to fund or maintain any LIBOR Loan, then, unless that Lender is
        able to
        make or to continue to fund or to maintain such LIBOR Loan at another branch
        or
        office of that Lender without, in that Lender’s opinion, adversely affecting it
        or its Loans or the income obtained therefrom, on notice thereof and demand
        therefor by such Lender to Borrower through Agent, (i) the obligation of
        such Lender to agree to make or to make or to continue to fund or maintain
        LIBOR
        Loans shall terminate and (ii) Borrower shall forthwith prepay in full all
        outstanding LIBOR Loans owing to such Lender, together with interest accrued
        thereon, unless Borrower, within 5 Business Days after the delivery of such
        notice and demand, converts all LIBOR Loans into Index Rate
        Loans.

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (d) Within
      15
      days after receipt by Borrower of written notice and demand from any Lender
      (an
“Affected
      Lender”)
      for
      payment of additional amounts or increased costs as provided in Sections
      1.15(a),
      1.16(a)
      or
1.16(b),
      Borrower may, at its option, notify Agent and such Affected Lender of its
      intention to replace the Affected Lender. So long as no Default or Event of
      Default has occurred and is continuing, Borrower, with the consent of Agent,
      may
      obtain, at Borrower’s expense, a replacement Lender (“Replacement
      Lender”)
      for
      the Affected Lender, which Replacement Lender must be reasonably satisfactory
      to
      Agent. If Borrower obtains a Replacement Lender within 90 days following notice
      of its intention to do so, the Affected Lender must sell and assign its Loans
      and Commitments to such Replacement Lender for an amount equal to the principal
      balance of all Loans held by the Affected Lender and all accrued interest and
      Fees with respect thereto through the date of such sale; provided,
      that
      Borrower shall have reimbursed such Affected Lender for the additional amounts
      or increased costs that it is entitled to receive under this Agreement through
      the date of such sale and assignment. Notwithstanding the foregoing, Borrower
      shall not have the right to obtain a Replacement Lender if the Affected Lender
      rescinds its demand for increased costs or additional amounts within 15 days
      following its receipt of Borrower’s notice of intention to replace such Affected
      Lender. Furthermore, if Borrower gives a notice of intention to replace and
      does
      not so replace such Affected Lender within 90 days thereafter, Borrower’s rights
      under this Section
      1.16(d)
      shall
      terminate and Borrower shall promptly pay all increased costs or additional
      amounts demanded by such Affected Lender pursuant to Sections
      1.15(a), 1.16(a) and 1.16(b).

     

    1.17 Single
      Loan.
      All
      Loans to Borrower and all of the other Obligations of Borrower arising under
      this Agreement and the other Loan Documents shall constitute one general
      obligation of Borrower secured, until the Termination Date, by all of the
      Collateral.

     

    1.18 Rate
      Management Agreements.
      On the
      Commitment Termination Date, notwithstanding any other provision of this
      Agreement to the contrary, the US Credit Parties shall, after satisfying all
      other Obligations hereunder, provide cash collateral for any outstanding Rate
      Management Agreements (in an amount jointly determined by Agent and the
      applicable Rate Management Provider as sufficient to satisfy the reasonably
      estimated credit exposure with respect to such Rate Management Agreements)
      to be
      held by the applicable Rate Management Provider with respect to its Rate
      Management Obligations). For all purposes of this Agreement, including in
      connection with any distribution of payments and collections, Agent shall be
      entitled to assume no amounts are due to any Rate Management Provider unless
      such Rate Management Provider has notified Agent in writing of the amount of
      any
      such liability owed to it prior to such distribution.

     

    2. CONDITIONS
      PRECEDENT

     

    2.1 Conditions
      to the Initial Loans.
      No
      Lender shall be obligated to make any Loan or incur any Letter of Credit
      Obligations on the Closing Date, or to take, fulfill, or perform any other
      action hereunder, until the following conditions have been satisfied or provided
      for in a manner satisfactory to Agent, or waived in writing by Agent and
      Lenders:

     

    (a) Credit
      Agreement; Loan Documents.
      This
      Agreement or counterparts hereof shall have been duly executed by, and delivered
      to, Borrower, each other Credit Party, Agent and Lenders; and Agent shall have
      received such documents, instruments, agreements and legal opinions as Agent
      shall reasonably request in connection with the transactions contemplated by
      this Agreement and the other Loan Documents, including all those listed in
      the
      Closing Checklist attached hereto as Annex
      D,
      each in
      form and substance reasonably satisfactory to Agent.

     

    
      
        
        

      

      
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    (b) Intentionally
      Omitted.

     

    (c) Approvals.
      Agent
      shall have received (i) satisfactory evidence that the Credit Parties have
      obtained all required consents and approvals of all Persons including all
      requisite Governmental Authorities, to the execution, delivery and performance
      of this Agreement and the other Loan Documents and the consummation of the
      Acquisitions and the Related Transactions or (ii) an officer’s certificate in
      form and substance reasonably satisfactory to Agent affirming that no such
      consents or approvals are required.

     

    (d) Opening
      Availability.
      Borrower shall have Borrowing Availability, after giving effect to the initial
      Revolving Credit Advance, the incurrence of any initial Letter of Credit
      Obligations and the consummation of the Related Transactions (on a pro forma
      basis, with trade payables being paid currently and not more than 60 days past
      due, and expenses and liabilities being paid in the ordinary course of business
      and without acceleration of sales), plus cash-on-hand and Cash Equivalents,
      in
      the aggregate, of at least $10,000,000.

     

    (e) Payment
      of Fees.
      Borrower shall have paid the Fees required to be paid on the Closing Date in
      the
      respective amounts specified in Section
      1.9
      (including the Fees specified in the GE Capital Fee Letter), and shall have
      reimbursed Agent for all fees, costs and expenses of closing presented as of
      the
      Closing Date.

     

    (f) Capital
      Structure: Other Indebtedness.
      The
      capital structure of each Credit Party and the terms and conditions of all
      Indebtedness, equity and stockholder agreements, incentive or other employment
      agreements, tax agreements and other material contracts, organizational
      documents, management structure and composition of board of directors and board
      selection procedures of each Credit Party, and the tax effects resulting from
      the Acquisitions, shall be acceptable to Agent in its sole
      discretion.

     

    (g) Due
      Diligence.
      Agent
      shall have completed its business, environmental and legal due diligence,
      including a roll-forward of its previous audits and background
      checks.

     

    (h) Consummation
      of Related Transactions.
      Agent
      shall have received fully executed copies of each of the BetaTHERM Acquisition
      Agreement and the YSIS Acquisition Agreement and each of the other Related
      Transactions Documents, each of which shall be in form and substance reasonably
      satisfactory to Agent and its counsel. The Acquisitions and the other Related
      Transactions shall have been consummated in accordance with the terms of each
      of
      the BetaTHERM Acquisition Agreement and the YSIS
      Acquisition Agreement and the other Related Transactions Documents but for
      the
      payment of the cash purchase price payable pursuant to the BetaTHERM Acquisition
      Agreement and the YSIS Acquisition Agreement and delivery the closing documents
      specified in the BetaTHERM Acquisition Agreement and the YSIS Acquisition
      Agreement.

     

    
      
        
        

      

      
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    2.2 Further
      Conditions to Each Loan.
      Except
      as otherwise expressly provided herein, no Lender shall be obligated to fund
      any
      Advance, convert or continue any Loan as a LIBOR Loan or incur any Letter of
      Credit Obligation, if, as of the date thereof:

     

    (a) any
      representation or warranty by any Credit Party contained herein or in any other
      Loan Document is untrue or incorrect as of such date, except to the extent
      that
      such representation or warranty expressly relates to an earlier date and except
      for changes therein expressly permitted or expressly contemplated by this
      Agreement, and Agent or Requisite Lenders have determined not to make such
      Advance, convert or continue any Loan as LIBOR Loan or incur such Letter of
      Credit Obligation as a result of the fact that such warranty or representation
      is untrue or incorrect;

     

    (b) any
      event
      or circumstance having a Material Adverse Effect has occurred since the date
      hereof as determined by the Requisite Lenders, and Agent or Requisite Lenders
      have determined not to make such Advance, convert or continue any Loan as a
      LIBOR Loan or incur such Letter of Credit Obligation as a result of the fact
      that such event or circumstance has occurred;

     

    (c) any
      Default or Event of Default has occurred and is continuing or would result
      after
      giving effect to any Advance (or the incurrence of any Letter of Credit
      Obligation), and Agent or Requisite Lenders shall have determined not to make
      any Advance, convert or continue any Loan as a LIBOR Loan or incur any Letter
      of
      Credit Obligation as a result of that Default or Event of Default;

     

    (d) after
      giving effect to any Advance (or the incurrence of any Letter of Credit
      Obligations),
      the
      outstanding principal amount of the Revolving Loan would exceed the Maximum
      Amount; or

     

    (e) after
      giving effect to any Advance
      (or the incurrence of any Letter of Credit Obligations),
      Borrower and its Subsidiaries on a consolidated basis shall have (i) a Senior
      Leverage Ratio not in excess of 3.00 to 1.00, and (ii) a Total Leverage Ratio
      not in excess of 3.50 to 1.00, in each case, calculated using EBITDA for the
      twelve Fiscal Month period ended at the end of Fiscal Month for which financial
      statements have most recently been required to delivered to Agent pursuant
      to
      paragraph (a) of Annex
      E
      prior to
      the date of such Advance (or the incurrence of any Letter of Credit
      Obligations).

     

    The
      request and acceptance by Borrower of the proceeds of any Advance, the
      incurrence of any Letter of Credit Obligations or the conversion or continuation
      of any Loan into, or as, a LIBOR Loan shall be deemed to constitute, as of
      the
      date thereof, (i) a representation and warranty by Borrower that the conditions
      in this Section
      2.2
      have
      been satisfied and (ii) a reaffirmation by Borrower of the granting and
      continuance of Agent’s Liens, on behalf of itself and Lenders, pursuant to the
      Collateral Documents.

     

    3. REPRESENTATIONS
      AND WARRANTIES

     

    To
      induce
      Lenders to make the Loans and to incur Letter of Credit Obligations, the US
      Credit Parties executing this Agreement, jointly and severally, make the
      following representations and warranties to Agent and each Lender with respect
      to all Credit Parties, each and all of which shall survive the execution and
      delivery of this Agreement.

     

    
      
        
        

      

      
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    3.1 Corporate
      Existence; Compliance with Law.
      Each
      Credit Party (a) is a corporation, limited liability company or limited
      partnership duly organized, validly existing and in good standing under the
      laws
      of its respective jurisdiction of incorporation or organization set forth in
      Disclosure
      Schedule (3.1);
      (b) is
      duly qualified to conduct business and is in good standing in each other
      jurisdiction where its ownership or lease of property or the conduct of its
      business requires such qualification, except where the failure to be so
      qualified would not result in exposure to losses, damages or liabilities in
      excess of $50,000; (c) has the requisite power and authority and the legal
      right
      to own, pledge, mortgage or otherwise encumber and operate its properties,
      to
      lease the property it operates under lease and to conduct its business as now,
      heretofore and proposed to be conducted; (d) subject to specific representations
      regarding Environmental Laws, has all material licenses, permits, consents
      or
      approvals from or by, and has made all material filings with, and has given
      all
      material notices to, all Governmental Authorities having jurisdiction, to the
      extent required for such ownership, operation and conduct; (e) is in compliance
      with its charter and bylaws or partnership or operating agreement, as
      applicable; and (f) subject to specific representations set forth herein
      regarding ERISA, Environmental Laws, tax and other laws, is in compliance with
      all applicable provisions of law, except where the failure to comply,
      individually or in the aggregate, could not reasonably be expected to have
      a
      Material Adverse Effect.

     

    3.2 Executive
      Offices, Collateral Locations, FEIN.
      As of
      the Closing Date, the current location of each US Credit Party’s chief executive
      office and the warehouses and premises at which any Collateral is located are
      set forth in Disclosure
      Schedule (3.2),
      and
      none of such locations has changed within 12 months preceding the Closing Date
      except as disclosed therein. In addition, Disclosure
      Schedule (3.2)
      lists
      the federal employer identification number of each US Credit Party.

     

    3.3 Corporate
      Power, Authorization, Enforceable Obligations.
      The
      execution, delivery and performance by each Credit Party of the Loan Documents
      to which it is a party and the creation of all Liens provided for therein:
      (a)
      are within such Person’s power; (b) have been duly authorized by all necessary
      corporate, limited liability company or limited partnership action; (c) do
      not
      contravene any provision of such Person’s charter, bylaws or partnership or
      operating agreement as applicable; (d) do not violate any law or regulation,
      or
      any order or decree of any court or Governmental Authority; (e) do not conflict
      with or result in the breach or termination of, constitute a default under
      or
      accelerate or permit the acceleration of any performance required by, any
      indenture, mortgage, deed of trust, lease, agreement or other instrument to
      which such Person is a party or by which such Person or any of its property
      is
      bound; (f) do not result in the creation or imposition of any Lien upon any
      of
      the property of such Person other than those in favor of Agent, on behalf of
      itself and Lenders, pursuant to the Loan Documents; and (g) do not require
      the
      consent or approval of any Governmental Authority or any other Person, except
      those referred to in Section
      2.1(c),
      all of
      which will have been duly obtained, made or complied with prior to the Closing
      Date. Each of the Loan Documents has been or shall be duly executed and
      delivered by each Credit Party that is a party thereto and each such Loan
      Document constitutes or shall constitute a legal, valid and binding obligation
      of such Credit Party enforceable against it in accordance with its
      terms.

     

    
      
        
        

      

      
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    3.4 Financial
      Statements and Projections.
      Except
      for the Projections, all Financial Statements concerning Borrower and its
      Subsidiaries that are referred to below have been prepared in accordance with
      GAAP consistently applied throughout the periods covered (except as disclosed
      therein and except, with respect to unaudited Financial Statements, for the
      absence of footnotes and normal year-end audit adjustments) and present fairly
      in all material respects the financial position of the Persons covered thereby
      as at the dates thereof and the results of their operations and cash flows
      for
      the periods then ended.

     

    (a) Financial
      Statements.
      The
      following Financial Statements attached hereto as Disclosure
      Schedule (3.4(a))
      have
      been delivered on the date hereof:

     

    (i) The
      audited consolidated balance sheets at March 31, 2005 and the related statements
      of income and cash flows of Borrower and its Subsidiaries for the Fiscal Year
      then ended, certified by Grant Thornton LLP, and the unaudited consolidating
      balance sheets at March 31, 2005 and the related statements of income and cash
      flows of Borrower and its Subsidiaries for the Fiscal Year then
      ended.

     

    (ii) The
      audited consolidated balance sheets at June 30, 2004 and 2005 and the related
      statements of income and cash flows of BetaTHERM Group and its Subsidiaries
      for
      the Fiscal Years then ended, certified by Ernst & Young.

     

    (iii) The
      unaudited consolidated balance sheets at December 31, 2003, 2004 and 2005 and
      the related statements of income of YSIS and its Subsidiaries for the Fiscal
      Years then ended.

     

    (iv) The
      unaudited consolidated and consolidating balance sheets at December 31, 2005,
      January 31, 2006 and February 28, 2006 and the related statements of income
      of
      Borrower and its Subsidiaries for the fiscal periods then ended.

     

    (v) The
      unaudited consolidated and consolidating balance sheets at and February 28,
      2006
      and the related statements of income of BetaTHERM Group and its Subsidiaries
      for
      the 8 Fiscal Months then ended.

     

    (vi) The
      unaudited consolidated balance sheets at January 31, 2006 and February 28,
      2006
      and the related statements of income of YSIS and its Subsidiaries for the fiscal
      periods then ended.

     

    (b) Pro
      Forma.
      The Pro
      Forma delivered on the date hereof and attached hereto as Disclosure
      Schedule (3.4(b))
      was
      prepared by Borrower giving pro
      forma
      effect
      to the Related Transactions, was based on the unaudited consolidated and
      consolidating balance sheets of Borrower and its Subsidiaries dated March 31,
      2006 and was prepared in accordance with GAAP, with only such adjustments
      thereto as would be required in accordance with GAAP, except to the extent
      otherwise disclosed on Disclosure
      Schedule (3.4(b)).

     

    (c) Projections.
      The
      Projections delivered on the date hereof and attached hereto as Disclosure
      Schedule (3.4(c))
      have
      been prepared by Borrower, on a consolidated and consolidating basis, in light
      of the past operations of its businesses, but including future payments of
      known
      contingent liabilities, and reflect projections for the five year period
      beginning on March 1, 2006 on a month-by-month. The Projections are based upon
      estimates and assumptions stated therein, all of which Borrower believes to
      be
      reasonable and fair in light of current conditions and current facts known
      to
      Borrower and, as of the Closing Date, reflect Borrower’s good faith and
      reasonable estimates of the future financial performance of Borrower and of
      the
      other information projected therein for the period set forth therein, except
      to
      the extent otherwise disclosed therein..

     

    
      
        
        

      

      
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    3.5 Material
      Adverse Effect.
      Between
      March 31, 2005 and the Closing Date, (a) no Credit Party has incurred any
      obligations, contingent or noncontingent liabilities, liabilities for Charges,
      long-term leases or unusual forward or long-term commitments that are not
      reflected in the Pro Forma and that, alone or in the aggregate, could reasonably
      be expected to have a Material Adverse Effect, (b) no contract, lease or other
      agreement or instrument has been entered into by any Credit Party or has become
      binding upon any Credit Party’s assets and no law or regulation applicable to
      any Credit Party has been adopted that has had or could reasonably be expected
      to have a Material Adverse Effect, and (c) no Credit Party is in default and
      to
      the best of Borrower’s knowledge no third party is in default under any material
      contract, lease or other agreement or instrument, that alone or in the aggregate
      could reasonably be expected to have a Material Adverse Effect. Between March
      31, 2005 and the Closing Date no event has occurred, that alone or together
      with
      other events, could reasonably be expected to have a Material Adverse
      Effect.

     

    3.6 Ownership
      of Property; Liens.
      As of
      the Closing Date, the real estate (“Real
      Estate”)
      listed
      in Disclosure
      Schedule (3.6)
      constitutes all of the real property owned, leased, subleased, or used by any
      Credit Party. Each Credit Party owns good and marketable fee simple title to
      all
      of its owned Real Estate, and valid and marketable leasehold interests in all
      of
      its leased Real Estate, all as described on Disclosure
      Schedule (3.6),
      and
      copies of all such leases or a summary of terms thereof reasonably satisfactory
      to Agent have been delivered to Agent. Disclosure
      Schedule (3.6)
      further
      describes any Real Estate with respect to which any Credit Party is a lessor,
      sublessor or assignor as of the Closing Date. Each Credit Party also has good
      and marketable title to, or valid leasehold interests in, all of its personal
      property and assets. As of the Closing Date, none of the properties and assets
      of any Credit Party are subject to any Liens other than Permitted Encumbrances,
      and there are no facts, circumstances or conditions known to any Credit Party
      that may result in any Liens (including Liens arising under Environmental Laws)
      other than Permitted Encumbrances.

     

    3.7 Labor
      Matters.
      As of
      the Closing Date (a) no strikes or other material labor disputes against any
      Credit Party are pending or, to any Credit Party’s knowledge, threatened; (b)
      hours worked by and payment made to employees of each Credit Party comply with
      the Fair Labor Standards Act and each other federal, state, local or foreign
      law
      applicable to such matters; (c) all payments due from any Credit Party for
      employee health and welfare insurance have been paid or accrued as a liability
      on the books of such Credit Party; (d) except as set forth in Disclosure
      Schedule (3.7),
      no
      Credit Party is a party to or bound by any collective bargaining agreement,
      management agreement, consulting agreement, employment agreement, bonus,
      restricted stock, stock option, or stock appreciation plan or agreement or
      any
      similar plan, agreement or arrangement (and true and complete copies of any
      agreements described on Disclosure
      Schedule (3.7)
      have
      been delivered to Agent); (e) there is no organizing activity involving any
      Credit Party pending or, to any Credit Party’s knowledge, threatened by any
      labor union or group of employees; (f) there are no representation proceedings
      pending or, to any Credit Party’s knowledge, threatened with the National Labor
      Relations Board, and no labor organization or group of employees of any Credit
      Party has made a pending demand for recognition; and (g) except as set forth
      in
Disclosure
      Schedule (3.7),
      there
      are no material complaints or charges against any Credit Party pending or,
      to
      the knowledge of any Credit Party, threatened to be filed with any Governmental
      Authority or arbitrator based on, arising out of, in connection with, or
      otherwise relating to the employment or termination of employment by any Credit
      Party of any individual.

     

    
      
        
        

      

      
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    3.8 Ventures,
      Subsidiaries and Affiliates; Outstanding Stock and Indebtedness.
      Except
      as set forth in Disclosure
      Schedule (3.8),
      as of
      the Closing Date, no Credit Party has any Subsidiaries, is engaged in any joint
      venture or partnership with any other Person, or is an Affiliate of any other
      Person. All of the issued and outstanding Stock of each Credit Party
(other
      than Borrower) is
      owned
      by each of the Stockholders and in the amounts set forth in Disclosure
      Schedule (3.8).
      Except
      as set forth in Disclosure
      Schedule (3.8),
      there
      are no outstanding rights to purchase, options, warrants or similar rights
      or
      agreements pursuant to which any Credit Party (including Borrower) may be
      required to issue, sell, repurchase or redeem any of its Stock or other equity
      securities or any Stock or other equity securities of its Subsidiaries. All
      outstanding Indebtedness and Guaranteed Indebtedness of each Credit Party as
      of
      the Closing Date (except for the Obligations) is described in Section
      6.3
      (including Disclosure
      Schedule (6.3)).

     

    3.9 Government
      Regulation.
      No
      Credit Party is an “investment company” or an “affiliated person” of, or
“promoter” or “principal underwriter” for, an “investment company,” as such
      terms are defined in the Investment Company Act of 1940. No Credit Party is
      subject to regulation under the Public Utility Holding Company Act of 1935,
      the
      Federal Power Act, or any other federal or state statute that restricts or
      limits its ability to incur Indebtedness or to perform its obligations
      hereunder. The making of the Loans by Lenders to Borrower, the incurrence of
      the
      Letter of Credit Obligations on behalf of Borrower, the application of the
      proceeds thereof and repayment thereof and the consummation of the Related
      Transactions will not violate any provision of any such statute or any rule,
      regulation or order issued by the Securities and Exchange
      Commission.

     

    3.10 Margin
      Regulations.
      No
      Credit Party is engaged, nor will it engage, principally or as one of its
      important activities, in the business of extending credit for the purpose of
      “purchasing” or “carrying” any “margin stock” as such terms are defined in
      Regulation U of the Federal Reserve Board as now and from time to time hereafter
      in effect (such securities being referred to herein as “Margin
      Stock”).
      None
      of the proceeds of the Loans or other extensions of credit under this Agreement
      will be used, directly or indirectly, for the purpose of purchasing or carrying
      any Margin Stock, for the purpose of reducing or retiring any Indebtedness
      that
      was originally incurred to purchase or carry any Margin Stock or for any other
      purpose that might cause any of the Loans or other extensions of credit under
      this Agreement to be considered a “purpose credit” within the meaning of
      Regulations T, U or X of the Federal Reserve Board. No Credit Party will take
      or
      permit to be taken any action that might cause any Loan Document to violate
      any
      regulation of the Federal Reserve Board.

     

    
      
        
        

      

      
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    3.11 Taxes.
      All tax
      returns, reports and statements, including information returns, required by
      any
      Governmental Authority (“Tax
      Returns”)
      to be
      filed by any Credit Party have been filed with the appropriate Governmental
      Authority; all such Tax Returns are true, correct and complete in all material
      respects; and all Charges have been paid prior to the date on which any fine,
      penalty, interest or late charge may be added thereto for nonpayment thereof
      (or
      any such fine, penalty, interest, late charge or loss has been paid), excluding
      Charges or other amounts being contested in accordance with Section
      5.2(b).
      There
      are no Liens for Charges (other than for current Charges not yet due and
      payable) upon the assets of any Credit Party. No adjustment relating to such
      Tax
      Returns has been proposed formally or informally by any Governmental Authority
      and, to the knowledge of each Credit Party, no basis exists for any such
      adjustment. Proper and accurate amounts have been withheld by each Credit Party
      from its respective employees, independent contractors, creditors, members,
      partners and other third parties for all periods in full and complete compliance
      with all applicable federal, state, local and foreign laws and such withholdings
      have been timely paid to the respective Governmental Authorities. Disclosure
      Schedule (3.11)
      sets
      forth as of the Closing Date those taxable years for which any Credit Party’s
      tax returns are currently being audited by the IRS or any other applicable
      Governmental Authority and any assessments or threatened assessments in
      connection with such audit, or otherwise currently outstanding. Except as
      indicated on Disclosure
      Schedule (3.11),
      all
      Charges that have been claimed, proposed, asserted or assessed against any
      Credit Party (or with respect to any of their assets) have been fully paid
      or
      finally settled. Except as described in Disclosure
      Schedule (3.11),
      no
      Credit Party has executed or filed with the IRS or any other Governmental
      Authority any agreement or other document extending, or having the effect of
      extending, the period for assessment or collection of any Charges. None of
      the
      Credit Parties and their respective predecessors are liable for any Charges:
      (a)
      under any agreement (including any tax sharing agreements) or (b) to each Credit
      Party’s knowledge, as a transferee. As of the Closing Date, no Credit Party has
      agreed or been requested to make any adjustment under IRC Section 481(a), by
      reason of a change in accounting method or otherwise, which would have a
      Material Adverse Effect.

     

    3.12 ERISA.

     

    (a) Disclosure
      Schedule (3.12)
      lists
      all Plans and separately identifies all Pension Plans, including Title IV Plans,
      Multiemployer Plans, ESOPs and Welfare Plans, including all Retiree Welfare
      Plans in effect as of the Closing Date. Copies of all such listed Plans,
      together with a copy of the latest form IRS/DOL 5500-series for each such Plan
      have been delivered to Agent. Except with respect to Multiemployer Plans, each
      Qualified Plan has been determined by the IRS to qualify under Section 401
      of
      the IRC, the trusts created thereunder have been determined to be exempt from
      tax under the provisions of Section 501 of the IRC, and nothing has occurred
      that would cause the loss of such qualification or tax-exempt status. Each
      Plan
      is in compliance with the applicable provisions of ERISA and the IRC, including
      the timely filing of all reports required under the IRC or ERISA, including
      the
      statement required by 29 CFR Section 2520.104-23. Neither any Credit Party
      nor
      ERISA Affiliate has failed to make any contribution or pay any amount due as
      required by either Section 412 of the IRC or Section 302 of ERISA or the terms
      of any such Plan. Neither any Credit Party nor ERISA Affiliate has engaged
      in a
“prohibited
      transaction,”
as
      defined in Section 406 of ERISA and Section 4975 of the IRC, in connection
      with
      any Plan, that would subject any Credit Party to a material tax on prohibited
      transactions imposed by Section 502(i) of ERISA or Section 4975 of the
      IRC.

     

    
      
        
        

      

      
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    (b) Except
      as
      set forth in Disclosure
      Schedule (3.12):
      (i) no
      Title IV Plan has any Unfunded Pension Liability; (ii) no ERISA Event or event
      described in Section 4062(e) of ERISA with respect to any Title IV Plan has
      occurred or is reasonably expected to occur; (iii) there are no pending, or
      to
      the knowledge of any Credit Party, threatened claims (other than claims for
      benefits in the normal course), sanctions, actions or lawsuits, asserted or
      instituted against any Plan or any Person as fiduciary or sponsor of any Plan;
      (iv) no Credit Party or ERISA Affiliate has incurred or reasonably expects
      to
      incur any liability as a result of a complete or partial withdrawal from a
      Multiemployer Plan; (v) within the last five years no Title IV Plan of any
      Credit Party or ERISA Affiliate has been terminated, whether or not in a
“standard termination” as that term is used in Section 404(b)(1) of ERISA, nor
      has any Title IV Plan of any Credit Party or ERISA Affiliate (determined at
      any
      time within the past five years) with Unfunded Pension Liabilities been
      transferred outside of the “controlled group” (within the meaning of Section
      4001(a)(14) of ERISA) of any Credit Party or ERISA Affiliate; (vi) except
      in the case of any ESOP, Stock of all Credit Parties and their ERISA Affiliates
      makes up, in the aggregate, no more than 10% of fair market value of the assets
      of any Plan measured on the basis of fair market value as of the latest
      valuation date of any Plan; and (vii) no liability under any Title IV Plan
      has been satisfied with the purchase of a contract from an insurance company
      that is not rated AAA by the Standard & Poor’s Corporation or an equivalent
      rating by another nationally recognized rating agency.

     

    3.13 No
      Litigation.

     

    (a) No
      action, claim, lawsuit, demand, investigation or proceeding is now pending
      or,
      to the knowledge of any Credit Party, threatened against any Credit Party,
      before any Governmental Authority or before any arbitrator or panel of
      arbitrators (collectively, “Litigation”),
      (a) that challenges any Credit Party’s right or power to enter into or
      perform any of its obligations under the Loan Documents to which it is a party,
      or the validity or enforceability of any Loan Document or any action taken
      thereunder, or (b) that has a reasonable risk of being determined adversely
      to
      any Credit Party and that, if so determined, could reasonably be expected to
      have a Material Adverse Effect. Except as set forth on Disclosure
      Schedule (3.13),
      as of
      the Closing Date there is no Litigation pending or threatened that seeks damages
      in excess of $100,000 or injunctive relief against, or alleges criminal
      misconduct of, any Credit Party.

     

    (b) Borrower
      has fully and finally settled the Class Action Litigation and paid all amounts
      payable by it in connection with such settlement and has no further liabilities
      or obligations, contingent or otherwise, relating to the Class Action
      Litigation. Borrower has fully and finally settled the SEC Investigation and
      paid all amounts payable by it in connection with such settlement and has no
      further liabilities or obligations, contingent or otherwise, relating to the
      SEC
      Investigation.

     

    3.14 Brokers.
      No
      broker or finder acting on behalf of any Credit Party or Affiliate thereof
      brought about the obtaining, making or closing of the Loans or the Related
      Transactions, and no Credit Party or Affiliate thereof has any obligation to
      any
      Person in respect of any finder’s or brokerage fees in connection
      therewith.

     

    3.15 Intellectual
      Property.
      As of
      the Closing Date, each Credit Party owns or has rights to use all Intellectual
      Property necessary to continue to conduct its business as now or heretofore
      conducted by it or proposed to be conducted by it, and each Patent, Trademark,
      Copyright and License is listed, together with application or registration
      numbers, as applicable, in Disclosure
      Schedule (3.15).
      Each
      Credit Party conducts its business and affairs without infringement of or
      interference with any Intellectual Property of any other Person in any material
      respect. Except as set forth in Disclosure
      Schedule (3.15),
      no
      Credit Party is aware of any infringement claim by any other Person with respect
      to any Intellectual Property.

     

    
      
        
        

      

      
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    3.16 Full
      Disclosure.
      No
      information contained in this Agreement, any of the other Loan Documents, any
      Projections, Financial Statements or other written reports from time to time
      delivered hereunder or any written statement furnished by or on behalf of any
      Credit Party to Agent or any Lender pursuant to the terms of this Agreement
      contains or will contain any untrue statement of a material fact or omits or
      will omit to state a material fact necessary to make the statements contained
      herein or therein not misleading in light of the circumstances under which
      they
      were made. The Liens granted to Agent, on behalf of itself and Lenders, pursuant
      to the Collateral Documents will at all times be fully perfected first priority
      Liens in and to the Collateral described therein, subject, as to priority,
      only
      to Permitted Encumbrances.

     

    3.17 Environmental
      Matters.

     

    (a) Except
      as
      set forth in Disclosure
      Schedule (3.17),
      as of
      the Closing Date: (i) the Real Estate is free of contamination from any
      Hazardous Material except for such contamination that would not adversely impact
      the value or marketability of such Real Estate and that would not result in
      Environmental Liabilities that could reasonably be expected to exceed $500,000;
      (ii) the Credit Parties are and have been in compliance with all Environmental
      Laws, except for such noncompliance that would not result in Environmental
      Liabilities which could reasonably be expected to exceed $500,000; (iii) the
      Credit Parties have obtained, and are in compliance with, all Environmental
      Permits required by Environmental Laws for the operations of their respective
      businesses as presently conducted or as proposed to be conducted, except where
      the failure to so obtain or comply with such Environmental Permits would not
      result in Environmental Liabilities that could reasonably be expected to exceed
      $500,000, and all such Environmental Permits are valid, uncontested and in
      good
      standing; (iv) no Credit Party is involved in operations or knows of any facts,
      circumstances or conditions, including any Releases of Hazardous Materials,
      that
      are likely to result in any Environmental Liabilities of such Credit Party
      which
      could reasonably be expected to exceed $500,000, and no Credit Party has
      permitted any current or former tenant or occupant of the Real Estate to engage
      in any such operations; (v) there is no Litigation arising under or related
      to
      any Environmental Laws, Environmental Permits or Hazardous Material that seeks
      damages, penalties, fines, costs or expenses in excess of $500,000 or injunctive
      relief against, or that alleges criminal misconduct by, any Credit Party; (vi)
      no notice has been received by any Credit Party identifying it as a “potentially
      responsible party” or requesting information under CERCLA or analogous state
      statutes, and to the knowledge of the Credit Parties, there are no facts,
      circumstances or conditions that may result in any Credit Party being identified
      as a “potentially responsible party” under CERCLA or analogous state statutes;
      and (vii) the Credit Parties have provided to Agent copies of all existing
      environmental reports, reviews and audits and all written information pertaining
      to actual or potential Environmental Liabilities, in each case relating to
      any
      Credit Party.

     

    
      
        
        

      

      
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    (b) Each
      Credit Party hereby acknowledges and agrees that Agent (i) is not now, and
      has
      not ever been, in control of any of the Real Estate or any Credit Party’s
      affairs, and (ii) does not have the capacity through the provisions of the
      Loan
      Documents or otherwise to influence any Credit Party’s conduct with respect to
      the ownership, operation or management of any of its Real Estate or compliance
      with Environmental Laws or Environmental Permits.

     

    3.18 Insurance.
      Disclosure
      Schedule (3.18)
      lists
      all insurance policies of any nature maintained, as of the Closing Date, for
      current occurrences by each Credit Party, as well as a summary of the terms
      of
      each such policy.

     

    3.19 Deposit
      and Disbursement Accounts.
      Disclosure
      Schedule (3.19)
      lists
      all banks and other financial institutions at which any Credit Party maintains
      deposit or other accounts as of the Closing Date, including any Disbursement
      Accounts, and such Schedule correctly identifies the name, address and telephone
      number of each depository, the name in which the account is held, a description
      of the purpose of the account, and the complete account number
      therefor.

     

    3.20 Government
      Contracts.
      Except
      as set forth in Disclosure
      Schedule (3.20),
      as of
      the Closing Date, no Credit Party is a party to any contract or agreement with
      any Governmental Authority and no Credit Party’s Accounts are subject to the
      Federal Assignment of Claims Act (31 U.S.C. Section 3727) or any similar state
      or local law.

     

    3.21 Customer
      and Trade Relations.
      As of
      the Closing Date, there exists no actual or, to the knowledge of any Credit
      Party, threatened termination or cancellation of, or any material adverse
      modification or change in the business relationship of any Credit Party with
      any
      customer or group of customers whose purchases during the preceding 12 months
      caused them to be ranked among the ten largest customers of such Credit Party
      or
      the business relationship of any Credit Party with any supplier material to
      its
      operations.

     

    3.22 Agreements
      and Other Documents.
      As of
      the Closing Date, each Credit Party has provided to Agent or its counsel, on
      behalf of Lenders, accurate and complete copies (or summaries) of all of the
      following agreements or documents to which it is subject and each of which
      is
      listed in Disclosure
      Schedule (3.22):
      any
      supply agreements and purchase agreements, leases or other agreements or
      licenses and permits, in each case, the absence of which could be reasonably
      likely to have a Material Adverse Effect; and instruments and documents
      evidencing any Indebtedness or Guaranteed Indebtedness of such Credit Party
      and
      any Lien granted by such Credit Party with respect thereto.

     

    3.23 Solvency.
      Both
      before and after giving effect to (a) the Loans and Letter of Credit Obligations
      to be made or incurred on the Closing Date or such other date as Loans and
      Letter of Credit Obligations requested hereunder are made or incurred, (b)
      the
      disbursement of the proceeds of such Loans pursuant to the instructions of
      Borrower, (c) the Acquisitions and the consummation of the other Related
      Transactions and (d) the payment and accrual of all transaction costs in
      connection with the foregoing, each Credit Party is and will be
      Solvent.

     

    3.24 Acquisition
      Agreements.
      As of
      the Closing Date:

     

    
      
        
        

      

      
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    (a) Borrower
      has delivered to Agent a complete and correct copy of the BetaTHERM Acquisition
      Agreement (including all schedules, exhibits, amendments, supplements,
      modifications, assignments and all other documents delivered pursuant thereto
      or
      in connection therewith) and all of conditions to consummation of the BetaTHERM
      Acquisition (other than payment of the purchase price and delivery of various
      ancillary closing documents as disclosed by Borrower to Agent and Lenders)
      in
      accordance with the terms of the BetaTHERM Acquisition Agreement (including
      execution and delivery all documents required to delivered pursuant thereto
      or
      in connection therewith) have been satisfied by the parties thereto. No Credit
      Party and no other Person party thereto is in default in the performance or
      compliance with any provisions thereof. The BetaTHERM Acquisition Agreement
      complies with, and the BetaTHERM Acquisition will be consummated in accordance
      with all applicable laws upon payment of the Purchase Price (as defined the
      BetaTHERM Acquisition Agreement) on the Closing Date. The BetaTHERM Acquisition
      Agreement is in full force and effect as of the Closing Date and has not been
      terminated, rescinded or withdrawn. All requisite approvals by Governmental
      Authorities having jurisdiction over BetaTHERM Sellers, any Credit Party and
      other Persons referenced therein, with respect to the transactions contemplated
      by the BetaTHERM Acquisition Agreement, have been obtained, and no such
      approvals impose any conditions to the consummation of the transactions
      contemplated by the BetaTHERM Acquisition Agreement or to the conduct by any
      Credit Party of its business thereafter. To the best of each Credit Party’s
      knowledge, none of the BetaTHERM Sellers’ representations or warranties in the
      BetaTHERM Acquisition Agreement contain any untrue statement of a material
      fact
      or omit any fact necessary to make the statements therein not misleading. Each
      of the representations and warranties given by each applicable Credit Party
      in
      the BetaTHERM Acquisition Agreement is true and correct in all material
      respects; and 

     

    (b) Borrower
      has delivered to Agent a complete and correct copy of the YSIS Acquisition
      Agreement (including all schedules, exhibits, amendments, supplements,
      modifications, assignments and all other documents delivered pursuant thereto
      or
      in connection therewith) and all of conditions to consummation of the YSIS
      Acquisition (other than payment of the purchase price and delivery of various
      ancillary closing documents as disclosed by Borrower to Agent and Lenders)
      in
      accordance with the terms of the YSIS Acquisition Agreement (including execution
      and delivery all documents required to delivered pursuant thereto or in
      connection therewith) have been satisfied by the parties thereto. No Credit
      Party and no other Person party thereto is in default in the performance or
      compliance with any provisions thereof. The YSIS Acquisition Agreement complies
      with, and the YSIS Acquisition will be consummated in accordance with all
      applicable laws upon payment of the Closing Date Purchase Price Payment (as
      defined the YSIS Acquisition Agreement) on the Closing Date. The YSIS
      Acquisition Agreement is in full force and effect as of the Closing Date and
      has
      not been terminated, rescinded or withdrawn. All requisite approvals by
      Governmental Authorities having jurisdiction over YSIS Sellers, any Credit
      Party
      and other Persons referenced therein, with respect to the transactions
      contemplated by the YSIS Acquisition Agreement, have been obtained, and no
      such
      approvals impose any conditions to the consummation of the transactions
      contemplated by the YSIS Acquisition Agreement or to the conduct by any Credit
      Party of its business thereafter. To the best of each Credit Party’s knowledge,
      none of the YSIS Sellers’ representations or warranties in the YSIS Acquisition
      Agreement contain any untrue statement of a material fact or omit any fact
      necessary to make the statements therein not misleading. Each of the
      representations and warranties given by each applicable Credit Party in the
      YSIS
      Acquisition Agreement is true and correct in all material respects.

     

    
      
        
        

      

      
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    3.25 Foreign
      Assets Control Regulations.
      None of
      the Credit Parties nor, to the best knowledge of each Credit Party, any
      Affiliate of any Credit Party, is, or will be after consummation of the Related
      Transactions and application of the proceeds of the Loans, by reason of being
      a
“national” of a “designated foreign country” or a “specially designated
      national” within the meaning of the Regulations of the Office of Foreign Assets
      Control, United States Treasury Department (31 C.F.R., Subtitle B, Chapter
      V),
      or for any other reason, in violation of, any United States Federal statute
      or
      Presidential Executive Order concerning trade or other relations with any
      foreign country or any citizen or national thereof or the ownership or operation
      of any Property.

     

    3.26 Anti-Terrorism
      Law.

     

    (a) No
      Credit
      Party and, to the knowledge of the Credit Parties, none of its Affiliates is
      in
      violation of any laws relating to terrorism or money laundering (“Anti-Terrorism
      Laws”),
      including Executive Order No. 13224 on Terrorist Financing, effective September
      24, 2001 (the “Executive
      Order”),
      and
      the Uniting and Strengthening America by Providing Appropriate Tools Required
      to
      Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (the
“Patriot
      Act”).

     

    (b) No
      Credit
      Party, and to the knowledge of the Credit Parties, no Affiliate or broker or
      other agent of any Credit Party acting or benefiting in any capacity in
      connection with the Loans is any of the following:

     

    (i) a
      Person
      that is listed in the annex to, or is otherwise subject to the provisions of,
      the Executive Order;

     

    (ii) a
      Person
      owned or controlled by, or acting for or on behalf of, any Person that is listed
      in the annex to, or is otherwise subject to the provisions of, the Executive
      Order;

     

    (iii) a
      Person
      with which any Lender is prohibited from dealing or otherwise engaging in any
      transaction by any Anti-Terrorism Law; or

     

    (iv) a
      Person
      that commits, threatens or conspires to commit or supports “terrorism” as
      defined in the Executive Order.

     

    (c) No
      Credit
      Party and, to the knowledge of the Credit Parties, no broker or other agent
      of
      any Credit Party acting in any capacity in connection with the Loans (i)
      conducts any business or engages in making or receiving any contribution of
      funds, goods or services to or for the benefit of any Person described in
      paragraph (b) above, (ii) deals in, or otherwise engages in any transaction
      relating to, any property or interests in property blocked pursuant to the
      Executive Order, or (iii) engages in or conspires to engage in any transaction
      that evades or avoids, or has the purpose of evading or avoiding, or attempts
      to
      violate, any of the prohibitions set forth in any Anti-Terrorism
      Law.

     

    
      
        
        

      

      
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    4. FINANCIAL
      STATEMENTS AND INFORMATION

     

    (a) Reports
      and Notices.
      Each US
      Credit Party executing this Agreement hereby agrees that from and after the
      Closing Date and until the Termination Date, it shall deliver to Agent or to
      Agent and Lenders, as required, the Financial Statements, notices, Projections
      and other information at the times, to the Persons and in the manner set forth
      in Annex
      E.

     

    4.2 Communication
      with Accountants.
      Each US
      Credit Party executing this Agreement authorizes (a) Agent and (b) so long
      as an
      Event of Default has occurred and is continuing, each Lender, to communicate
      directly with its independent certified public accountants, including Grant
      Thornton LLP and KPMG LLP, and authorizes and, at Agent’s request, shall
      instruct those accountants and advisors to disclose and make available to Agent
      and each Lender any and all Financial Statements and other supporting financial
      documents, schedules and information relating to any Credit Party (including
      copies of any issued management letters) with respect to the business, financial
      condition and other affairs of any Credit Party.

     

    5. AFFIRMATIVE
      COVENANTS

     

    Each
      US
      Credit Party executing this Agreement jointly and severally agrees as to itself,
      and to cause all other Credit Parties, from and after the date hereof and until
      the Termination Date to comply with the following:

     

    5.1 Maintenance
      of Existence and Conduct of Business.
      Except
      as contemplated by the BetaTHERM Reorganization, Each Credit Party shall: do
      or
      cause to be done all things necessary to preserve and keep in full force and
      effect its corporate existence and its rights and franchises; continue to
      conduct its business substantially as now conducted or as otherwise permitted
      hereunder; at all times maintain, preserve and protect all of its assets and
      properties used or useful in the conduct of its business, and keep the same
      in
      good repair, working order and condition in all material respects (taking into
      consideration ordinary wear and tear) and from time to time make, or cause
      to be
      made, all necessary or appropriate repairs, replacements and improvements
      thereto consistent with industry practices; and transact business only in such
      corporate and trade names as are set forth in Disclosure
      Schedule (5.1).

     

    5.2 Payment
      of Charges.

     

    (a) Subject
      to Section
      5.2(b),
      each
      Credit Party shall pay and discharge or cause to be paid and discharged promptly
      all Charges payable by it, including (i) Charges imposed upon it, its
      income and profits, or any of its property (real, personal or mixed) and all
      Charges with respect to tax, social security and unemployment withholding with
      respect to its employees, (ii) lawful claims for labor, materials, supplies
      and services or otherwise, and (iii) all storage or rental charges payable
      to warehousemen and bailees, in each case, before any thereof shall become
      past
      due.

     

    (b) Each
      Credit Party may in good faith contest, by appropriate proceedings, the validity
      or amount of any Charges, Taxes or claims described in Section
      5.2(a);
      provided, that (i) adequate reserves with respect to such contest are maintained
      on the books of such Credit Party, in accordance with GAAP; (ii) no Lien shall
      be imposed to secure payment of such Charges (other than payments to
      warehousemen and/or bailees) that is superior to any of the Liens securing
      payment of the Obligations and such contest is maintained and prosecuted
      continuously and with diligence and operates to suspend collection or
      enforcement of such Charges, (iii) none of the Collateral becomes subject to
      forfeiture or loss as a result of such contest, (iv) such Credit Party shall
      promptly pay or discharge such contested Charges, Taxes or claims and all
      additional charges, interest, penalties and expenses, if any, and shall deliver
      to Agent evidence reasonably acceptable to Agent of such compliance, payment
      or
      discharge, if such contest is terminated or discontinued adversely to such
      Credit Party or the conditions set forth in this Section
      5.2(b)
      are no
      longer met, and (v) Agent has not advised Borrower in writing that Agent
      reasonably believes that nonpayment or nondischarge thereof could have or result
      in a Material Adverse Effect.

     

    
      
        
        

      

      
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    5.3 Books
      and Records.
      Each
      Credit Party shall keep adequate books and records with respect to its business
      activities in which proper entries, reflecting all financial transactions,
      are
      made in accordance with GAAP and on a basis consistent with the Financial
      Statements attached as Disclosure
      Schedule (3.4(a)).
      Each
      Credit Party shall record all intercompany transactions on its books and records
      in a manner reasonably satisfactory to Agent.

     

    5.4 Insurance;
      Damage to or Destruction of Collateral.

     

    (a) Coverage.
      Without
      limiting any of the other obligations or liabilities
      of the Credit Parties under this Agreement, the Credit Parties shall, during
      the
      term of this Agreement, carry and maintain, at their own expense, at least
      the
      minimum insurance coverage set forth in this Section
      5.4.
      The
      Credit Parties shall also carry and maintain any other insurance that Agent
      may
      reasonably require from time to time. All insurance carried pursuant to this
      Section
      5.4
      shall be
      placed with such insurers having a minimum A.M. Best rating of A:X (or as may
      be
      otherwise agreed by Agent) and be in such form, with terms, conditions, limits
      and deductibles as shall be acceptable to Agent. The insurance required to
      be
      carried and maintained by the Credit Parties hereunder shall, in all events,
      include the following:

     

    (i) All
      Risk Property Insurance.
      The
      Credit Parties shall maintain all risk property insurance covering against
      physical loss or damage, including but not limited to fire and extended
      coverage, collapse, flood, earth movement and comprehensive boiler and machinery
      coverage (including electrical malfunction and mechanical breakdown). Coverage
      shall be written on a replacement cost basis in an amount acceptable to Agent.
      Such insurance policy shall contain an agreed amount endorsement waiving any
      coinsurance penalty and shall include expediting expense coverage;
      and

     

    (ii) Business
      Interruption Insurance.
      As an
      extension of the insurance required under paragraph (a)(i), the Credit Parties
      shall maintain business interruption insurance in an amount equal to 12 months
      projected net profits, and continuing expenses (including the debt service
      payments due on the loan). The insurance shall include coverage for contingent
      business interruption arising from loss or damage to property and equipment
      of
      major suppliers and customers of the Credit Parties. Such insurance shall
      contain an agreed amount endorsement waiving any coinsurance penalty and shall
      include extra expense coverage. Deductibles shall not exceed thirty (30) days;
      and

     

    
      
        
        

      

      
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    (iii) Comprehensive
      or Commercial General Liability Insurance.
      The
      Credit Parties shall maintain comprehensive general liability insurance written
      on an occurrence basis with a limit of not less than $1,000,000. Such coverage
      shall include, but not be limited to, premises/operations, broad form
      contractual liability, independent contractors, products/completed operations,
      property damage and personal injury liability. Such insurance shall not contain
      an exclusion for punitive or exemplary damages where insurable by law;
      and

     

    (iv) Workers’
      Compensation/Employer’s Liability Insurance.
      The
      Credit Parties shall maintain (i) Workers’ Compensation insurance in accordance
      with statutory provisions covering accidental injury, illness or death of an
      employee of the Credit Parties while at work or in the scope of his employment
      with the Credit Parties and (ii) Employer’s Liability in an amount not less than
      $1,000,000. Such coverage shall not contain any occupational disease exclusions;
      and

     

    (v) Automobile
      Liability Insurance.
      The
      Credit Parties shall maintain Automobile Liability insurance covering owned,
      non-owned, leased, hired or borrowed vehicles against bodily injury or property
      damage. Such coverage shall have a limit of not less than $1,000,000;
      and

     

    (vi) Excess/Umbrella
      Liability Insurance.
      The
      Credit Parties shall maintain excess or umbrella liability insurance written
      on
      an occurrence basis in an amount not less than $25,000,000 providing coverage
      limits in excess of the insurance limits required under paragraphs (a)(iii),
      and
      (a)(iv), employer’s liability only, and (v). Such insurance shall follow from
      the primary insurances and drop down in case of exhaustion of underlying limits
      and/or aggregates. Such insurance shall not contain an exclusion for punitive
      or
      exemplary damages where insurable under law; and

     

    (vii) Aircraft
      Products Liability Insurance.
      The
      Credit Parties shall maintain aircraft products liability insurance written
      in
      an amount not less than $10,000,000.

     

    (b) Endorsements.
      The
      Credit Parties shall cause all insurance policies carried and maintained in
      accordance with this Section
      5.4
      to be
      endorsed as follows:

     

    (i) Agent
      and
      Lenders shall be an additional insureds, with Agent as loss payee, with respect
      to property policies described in paragraphs (a)(i) and (a)(ii). Agent and
      Lenders shall be additional insureds with respect to liability policies
      described in paragraphs (a)(iii), (a)(iv), and, to the extent allowed by law,
      (a)(v), (vi) and (vii). It shall be understood that any obligation imposed
      upon
      the Credit Parties, including the obligation to pay premiums, shall be the
      sole
      obligation of the Credit Parties and not that of Agent and Lenders;
      and

     

    (ii) With
      respect to property policies described in paragraphs (a)(i) and (a)(ii), the
      interests of Agent and Lenders shall not be invalidated by any action or
      inaction of the Credit Parties or any other person, and shall insure Agent
      and
      Lenders regardless of any breach or violation by the Credit Parties or any
      other
      person, of any warranties, declarations or conditions of such policies;
      and

     

    (iii) Inasmuch
      as the liability policies are written to cover more than one insured, all terms
      conditions, insuring agreements and endorsements, with the exception of the
      limits of liability, shall operate in the same manner as if there were a
      separate policy covering each insured; and

     

    
      
        
        

      

      
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    (iv) The
      insurers thereunder shall waive all rights of subrogation against Agent and
      Lenders, any right of setoff or counterclaim, and any other right to deduction,
      whether by attachment or otherwise; and

     

    (v) Such
      insurance shall be primary without right of contribution of any other insurance
      carried by or on behalf of Agent and Lenders; and

     

    (vi) If
      such
      insurance is canceled for any reason whatsoever, including nonpayment of
      premium, or any changes are initiated by the Credit Parties or the carrier
      which
      affect the interests of Agent and Lenders, such cancellation or change shall
      not
      be effective as to Agent and Lenders until 30 days (ten (10) days in the case
      of
      non-payment of premium) after receipt by Agent of written notice sent by
      registered mail from such insurer.

     

    (c) Certifications.
      On the
      Closing Date, and at each policy renewal, but not less than annually, the Credit
      Parties shall provide to Agent a certification from each insurer or by an
      authorized representative of each insurer. Such certification shall identify
      the
      underwriters, the type of insurance, the limits, deductibles, and term thereof
      and shall specifically list the special provisions delineated in Section
      5.4(b)
      above
      for such insurance required for this Section
      5.4.

     

    (d) Insurance
      Report.
      Concurrently with the furnishing of all certificates referred to in this
Section
      5.4,
      the
      Credit Parties shall furnish Agent with a letter from an independent insurance
      broker, acceptable to Agent, stating that (i) all premiums then due by the
      Credit Parties have been paid, (ii) in the opinion of such broker, the insurance
      then maintained by the Credit Parties is in compliance with this Section
      5.4,
      (iii)
      the endorsements in Section
      5.4(b)
      above,
      have been or shall soon be, endorsed to the Credit Parties’ relevant insurance
      policies and (iv) upon its first knowledge, such broker shall advise Agent
      promptly in writing of any default in the payment of any premiums or any other
      act or omission, on the part of any person, which might invalidate or render
      unenforceable, in whole or in part, any insurance provided by the Credit Parties
      hereunder.

     

    (e) General.
      Upon
      request, the Credit Parties shall furnish Agent with copies of all insurance
      policies, binders and cover notes or other evidence of such insurance.
      Notwithstanding anything to the contrary herein, no provision of this
Section
      5.4
      or any
      provision of this Agreement shall impose on Agent any duty or obligation to
      verify the existence or adequacy of the insurance coverage maintained by the
      Credit Parties, nor shall Agent or any Lender be responsible for any
      representations or warranties made by or on behalf of the Credit Parties to
      any
      insurance broker, company or underwriter. Agent, at its sole option, may obtain
      such insurance if not provided by the Credit Parties and in such event, the
      Credit Parties shall reimburse Agent upon demand for the cost thereof together
      with interest.

     

    
      
        
        

      

      
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    (f) Power
      of Attorney.
      Each of
      the US Credit Parties irrevocably makes, constitutes and appoints Agent (and
      all
      officers, employees or agents designated by Agent), so long as any Default
      or
      Event of Default has occurred and is continuing or the anticipated insurance
      proceeds exceed $250,000, as its true and lawful agent and attorney-in-fact
      for
      the purpose of making, settling and adjusting claims under such “All Risk”
policies of insurance, endorsing its name on any check or other item of payment
      for the proceeds of such “All Risk” policies of insurance and for making all
      determinations and decisions with respect to such “All Risk” policies of
      insurance. Agent shall have no duty to exercise any rights or powers granted
      to
      it pursuant to the foregoing power-of-attorney. The Credit Parties shall
      promptly notify Agent of any loss, damage, or destruction to the Collateral
      in
      the amount of $250,000 or more, whether or not covered by insurance. After
      deducting from such proceeds the expenses, if any, incurred by Agent in the
      collection or handling thereof, Agent may, at its option, apply such proceeds
      to
      the reduction of the Obligations in accordance with Section 1.3(c),
      or
      permit or require the Credit Parties to use such money, or any part thereof,
      to
      replace, repair, restore or rebuild the Collateral in a diligent and expeditious
      manner with materials and workmanship of substantially the same quality as
      existed before the loss, damage or destruction. Notwithstanding the foregoing,
      if the casualty giving rise to such insurance proceeds could not reasonably
      be
      expected to have a Material Adverse Effect and such insurance proceeds do not
      exceed $5,000,000 in the aggregate, Agent shall permit the Credit Parties to
      replace, restore, repair or rebuild the property; provided that if the Credit
      Parties has not completed or entered into binding agreements to complete such
      replacement, restoration, repair or rebuilding within 180 days of such casualty,
      Agent may apply such insurance proceeds to the Obligations in accordance with
      Section
      1.3(c).
      All
      insurance proceeds that are to be made available to the Credit Parties to
      replace, repair, restore or rebuild the Collateral shall be applied by Agent
      to
      reduce the outstanding principal balance of the Revolving Loan (which
      application shall not result in a permanent reduction of the Revolving Loan
      Commitment) and upon such application, Agent shall establish a reserve against
      the Borrowing Availability in an amount equal to the amount of such proceeds
      so
      applied. Thereafter, such funds shall be made available to the Credit Parties
      to
      provide funds to replace, repair, restore or rebuild the Collateral as follows:
      (i) the Credit Parties shall request a Revolving Credit Advance in the amount
      requested to be released; (ii) so long as the conditions set forth in Section
      2.2 have been met, Revolving Lenders shall make such Revolving Credit Advance;
      and (iii) the reserve established with respect to such insurance proceeds shall
      be reduced by the amount of such Revolving Credit Advance. To the extent not
      used to replace, repair, restore or rebuild the Collateral, such insurance
      proceeds shall be applied in accordance with Section
      1.3(c).
      Nothing
      herein shall be construed to entitle the Agent to the proceeds of insurance
      from
      any loss with respect to any property or assets of any Credit Party that is
      not
      a US Credit Party.

     

    5.5 Compliance
      with Laws.
      Each
      Credit Party shall comply with all federal, state, local and foreign laws and
      regulations applicable to it, including those relating to ERISA and labor
      matters and Environmental Laws and Environmental Permits, except to the extent
      that the failure to comply, individually or in the aggregate, could not
      reasonably be expected to have a Material Adverse Effect.

     

    5.6 Supplemental
      Disclosure.
      From
      time to time as may be reasonably requested by Agent (which request will not
      be
      made more frequently than once each year absent the occurrence and continuance
      of a Default or an Event of Default), the Credit Parties shall supplement each
      Disclosure Schedule hereto, or any representation herein or in any other Loan
      Document, with respect to any matter hereafter arising that, if existing or
      occurring at the date of this Agreement, would have been required to be set
      forth or described in such Disclosure Schedule or as an exception to such
      representation or that is necessary to correct any information in such
      Disclosure Schedule or representation which has been rendered inaccurate thereby
      (and, in the case of any supplements to any Disclosure Schedule, such Disclosure
      Schedule shall be appropriately marked to show the changes made therein);
provided
      that (a)
      no such supplement to any such Disclosure Schedule or representation shall
      amend, supplement or otherwise modify the term Disclosure Schedule as used
      herein or any or representation with respect thereto, or be or be deemed a
      waiver of any Default or Event of Default resulting from the matters disclosed
      therein, except as consented to by Agent and Requisite Lenders in writing,
      and
      (b) no supplement shall be required or permitted as to representations and
      warranties that relate solely to the Closing Date.

     

    
      
        
        

      

      
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    5.7 Intellectual
      Property.
      Each
      Credit Party will conduct its business and affairs without infringement of
      or
      interference with any Intellectual Property of any other Person in any material
      respect.

     

    5.8 Environmental
      Matters.
      Each
      Credit Party shall and shall cause each Person within its control to: (a)
      conduct its operations and keep and maintain its Real Estate in compliance
      with
      all Environmental Laws and Environmental Permits other
      than noncompliance that could not reasonably be expected to have a Material
      Adverse Effect;
      (b)
      implement any and all investigation, remediation, removal and response actions
      that are appropriate or necessary to comply with Environmental Laws and
      Environmental Permits other than noncompliance that could not reasonably be
      expected to have a Material Adverse Effect; (c) notify Agent promptly after
      such
      Credit Party becomes aware of any violation of Environmental Laws or
      Environmental Permits or any Release on, at, in, under, above, to, from or
      about
      any Real Estate that is reasonably likely to result in Environmental Liabilities
      in excess of $100,000; and (d) promptly forward to Agent a copy of any order,
      notice, request for information or any communication or report received by
      such
      Credit Party in connection with any such violation or Release or any other
      matter relating to any Environmental Laws or Environmental Permits that could
      reasonably be expected to result in Environmental Liabilities in excess of
      $100,000, in each case whether or not the Environmental Protection Agency or
      any
      Governmental Authority has taken or threatened any action in connection with
      any
      such violation, Release or other matter.

     

    5.9 Landlords’
      Agreements, Mortgagee Agreements, Bailee Letters and Real Estate
      Purchases.
      Each US
      Credit Party shall obtain a landlord’s agreement, mortgagee agreement or bailee
      letter, as applicable, from the lessor of each leased property (other than
      Hampton, Virginia), mortgagee of owned property or bailee with respect to any
      warehouse, processor or converter facility or other location where Collateral
      is
      stored or located having a fair market value of greater than $500,000, which
      agreement or letter shall contain a waiver or subordination of all Liens or
      claims that the landlord, mortgagee or bailee may assert against the Collateral
      at that location, and shall otherwise be reasonably satisfactory in form and
      substance to Agent; provided
      that
      with respect to (i) 910 Boston Turnpike, Shrewsbury, Massachusetts, the US
      Credit Parties shall deliver a landlord’s agreement reasonably satisfactory in
      form and substance to Agent on or before October 1, 2006, unless the lease
      for
      such location is not renewed, and (ii) 2670 Indian Ripple Road, Dayton, Ohio,
      the US Credit Parties shall deliver a landlord’s agreement reasonably
      satisfactory in form and substance to Agent on or before the fifth Business
      Day
      following the Closing Date. After the Closing Date, no Collateral having a
      fair
      market value of greater than $500,000 shall be located at any real property
      or
      warehouse space leased by any US Credit Party or shall be shipped to a processor
      or converter under arrangements established after the Closing Date unless and
      until a satisfactory landlord agreement or bailee letter, as appropriate, shall
      first have been obtained with respect to such location, unless otherwise
      required by Agent. Each US Credit Party shall timely and fully pay and perform
      its obligations under all leases and other agreements with respect to each
      leased location or public warehouse where any Collateral is or may be located.
      To the extent permitted hereunder, if any US Credit Party proposes to acquire
      a
      fee ownership interest in Real Estate after the Closing Date, it shall first
      provide to Agent a mortgage or deed of trust granting Agent a first priority
      Lien on such Real Estate, together with environmental audits, mortgage title
      insurance commitment, real property survey, local counsel opinion(s), and,
      if
      required by Agent, supplemental casualty insurance and flood insurance, and
      such
      other documents, instruments or agreements reasonably requested by Agent, in
      each case, in form and substance reasonably satisfactory to Agent.

     

    
      
        
        

      

      
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    5.10 Key
      Man Life Insurance.
      Borrower shall maintain in full force and effect, with an insurance company
      satisfactory to Agent, a key man life insurance policy insuring the life of
      Frank Guidone in an amount no less than $5,000,000, naming Agent as beneficiary
      under such insurance policy and assigned to Agent by Borrower (which assignment
      will be consented to by the issuer of such insurance), and otherwise terms
      reasonably satisfactory in all respects to Agent. Borrower hereby assigns to
      Agent, and grants to Agent, for the benefit of Agent and Lenders, a security
      interest in and lien upon, all right, title and interest of Borrower in and
      to
      such policy and all proceeds thereof, to secure the Obligations, and such
      assignment and grant continue without any diminution thereof and remain in
      full
      force and effect. Upon receipt by Agent of any cash proceeds of such key man
      life insurance, Agent may at its option apply such proceeds to the prepayment
      of
      principal of the Loans in accordance with Section
      1.3(c).
      In the
      event any payment of such insurance proceeds is later rescinded, revoked or
      reduced or must otherwise be restored or returned for any reason, any such
      payment or prepayment of any Obligations shall be reinstated and deemed reduced
      only by such proceeds paid and not rescinded, reduced or returned. At any time
      and from time to time, upon the written request of Agent and at the sole expense
      of Borrower, Borrower shall promptly and duly execute and deliver any and all
      such further instruments and documents and take such further actions as Agent
      may deem desirable to obtain the full benefits of such assignment and security
      interest and of the rights and powers herein granted.

     

    5.11 ERISA.
      Each
      Credit Party shall comply in all material respects with the applicable
      provisions of ERISA and the IRC, except to the extent such failure to company,
      individually or in the aggregate, could not reasonably be expected to have
      a Material Adverse Affect.  Each Credit Party shall furnish to Agent
      written notice as soon as possible, and in any event within 10 Business Days
      after any Credit Party knows, or has reason to know, of: (a) a material increase
      in the benefits of any existing Plan, the establishment of any new Plan, or
      the
      commencement of contributions to any Plan; or (b) an ERISA Event, together
      with
      a statement of an officer setting forth the details of such ERISA Event and
      action which the Credit Parties propose to take with respect thereto.  The
      Credit Parties shall furnish to Agent, within 30 Business Days after
      the filing thereof with the Department of Labor, IRS or PBGC, copies of each
      annual report (Form 5500 series) filed for each Plan.  The Credit
      Parties shall furnish to Agent, within 30 days after receipt by any
      Credit Party or ERISA Affiliate, copies of each actuarial report for
      each Title IV Plan or Multiemployer Plan and each annual report for any
      Multiemployer Plan.

     

    
      
        
        

      

      
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    5.12 Foreign
      Subsidiaries.
      If
      Borrower shall at any time consolidate its and any of its Foreign Subsidiaries’
financial statements for US tax-reporting purposes on a world-wide basis, at
      the
      request of Agent, Borrower shall cause such Foreign Subsidiary to execute and
      deliver to Agent (a) a Guaranty in form and substance reasonably satisfactory
      to
      Agent, guarantying the Obligations under the other Loan Documents, and (b)
      Collateral Documents in form and substance reasonably satisfactory to Agent,
      granting to Agent a Lien over such Foreign Subsidiary’s properties and assets,
      in each case, to the extent such Guaranty or Collateral Document is not
      prohibited by the law of the jurisdiction of formation of such Foreign
      Subsidiary, and shall cause the pledge of all of the Stock of such Foreign
      Subsidiary to Agent to secure all of the Obligations. In making any request
      under the immediately preceding sentence, Agent shall, so long as no Default
      or
      Event of Default has occurred and is continuing, exercise reasonable credit
      judgment and take into consideration the costs associated therewith in relation
      to the value or importance of such Guaranty or Collateral Documents. The
      security interests required to be granted pursuant to this Section shall be
      valid and enforceable perfected security interests prior to the rights of all
      third Persons and subject to no other Liens, except Permitted Encumbrances.
      The
      Collateral Documents and other instruments related thereto shall be duly
      recorded or filed in such manner and in such places and at such times, and
      such
      other actions shall be taken, as are required by law to establish, perfect,
      preserve and protect the Liens, in favor of Agent, required to be granted
      pursuant to such documents and all taxes, fees and other charges payable in
      connection therewith shall be paid in full by Borrower and such Foreign
      Subsidiary. At the time of the execution and delivery of the additional
      documents, Borrower shall cause to be delivered to Agent such opinions of
      counsel, mortgage policies, title surveys, real estate appraisals, certificates
      of title, stock certificates and other related documents as may be reasonably
      requested by Agent to assure itself that this Section has been complied
      with.

     

    5.13 Further
      Assurances.
      Each US
      Credit Party executing this Agreement agrees that it shall and shall cause
      each
      other Credit Party to, at such Credit Party’s expense and upon request of Agent,
      duly execute and deliver, or cause to be duly executed and delivered, to Agent
      such further instruments and do and cause to be done such further acts as may
      be
      necessary or proper in the reasonable opinion of Agent to carry out more
      effectively the provisions and purposes of this Agreement or any other Loan
      Document.

     

    5.14 Patriot
      Act Compliance.
      The
      Credit Parties shall provide such information and take such actions as are
      reasonably required by Agent or any Lender in order to assist Agent and Lenders
      with compliance with the Patriot Act.

     

    5.15 BetaTHERM
      Reorganization.
      Within
      180 after the Closing Date, Borrower shall have caused the BetaTHERM
      Reorganization to be completed and shall have provided true, correct and
      complete copies of all documents and filings effecting such transactions;
provided
      that
      clauses (i) and (iii) of the BetaTHERM Reorganization shall be completed on
      or
      before April 10, 2006.

     

    6. NEGATIVE
      COVENANTS

     

    Each
      US
      Credit Party executing this Agreement jointly and severally agrees for itself,
      and to cause all other Credit Parties, from and after the date hereof until
      the
      Termination Date to comply with the following:

     

    
      
        
        

      

      
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    6.1 Mergers,
      Subsidiaries, Etc.
      No
      Credit Party shall directly or indirectly, by operation of law or otherwise,
      (a)
      form or acquire any Subsidiary, or (b) merge with, consolidate with, acquire
      all
      or substantially all of the assets or Stock of, or otherwise combine with or
      acquire, any Person, except (i) any wholly-owned Domestic Subsidiary of Borrower
      (other than IC Sensors, Elekon, Entran Devices and Intermediate Holdings) may
      merge with and into Borrower or another wholly-owned Domestic Subsidiary of
      Borrower (so long as Borrower is the surviving entity in any merger involving
      Borrower), (ii) the Credit Parties may consummate the BetaTHERM Reorganization,
      and (iii) any wholly-owned Foreign Subsidiary of Borrower may merge with another
      wholly-owned Foreign Subsidiary of Borrower. Notwithstanding the foregoing,
      Borrower, may acquire all or substantially all of the assets or Stock of any
      Person (the “Target”)
      (in
      each case, a “Permitted
      Acquisition”)
      subject to the satisfaction of each of the following conditions:

     

    (i) Agent
      shall receive at least 20 Business Days’ prior written notice of such proposed
      Permitted Acquisition, which notice shall include a reasonably detailed
      description of such proposed Permitted Acquisition;

     

    (ii) such
      Permitted Acquisition shall only involve assets comprising a business, or those
      assets of a business, of the type engaged in by the Credit Parties as of the
      Closing Date, and which business would not subject Agent or any Lender to
      regulatory or third party approvals in connection with the exercise of its
      rights and remedies under this Agreement or any other Loan Documents other
      than
      approvals applicable to the exercise of such rights and remedies with respect
      to
      Borrower prior to such Permitted Acquisition;

     

    (iii) such
      Permitted Acquisition shall be consensual and shall have been approved by the
      Target’s board of directors;

     

    (iv) no
      additional Indebtedness or Guaranteed Indebtedness, contingent obligations
      or
      other liabilities shall be incurred, assumed or otherwise be reflected on a
      consolidated balance sheet of Borrower and Target after giving effect to such
      Permitted Acquisition, except to the extent such Indebtedness or Guaranteed
      Indebtedness is permitted under Section
      6.3
      or
Section
      6.6;

     

    (v) the
      purchase price and all other amounts payable by the Credit Parties in connection
      with any Permitted Acquisitions, including all transaction costs and Loans
      made
      hereunder related thereto, shall not exceed $40,000,000
      in
      the
      aggregate in any Fiscal Year (and, with respect to Permitted Acquisitions by
      Foreign Subsidiaries of Borrower, such purchase price shall be paid from cash
      and cash equivalents of the Foreign Subsidiaries prior to use of cash and cash
      equivalents of the Borrower and its Domestic Subsidiaries);

     

    (vi) the
      business and assets acquired in such Permitted Acquisition shall be free and
      clear of all Liens (other than Permitted Encumbrances);

     

    (vii) at
      or
      prior to the closing of any Permitted Acquisition, Agent will be granted a
      first
      priority perfected Lien (subject to Permitted Encumbrances) in all assets
      acquired pursuant thereto by a US Credit Party or
      in the
      assets and Stock of the Target which is a US Credit Party
      (and in
      66% of Stock held by the US Credit Parties of any Target which is a Foreign
      Subsidiary of a US Credit Party), and the Credit Parties and the Target shall
      have executed such documents and taken such actions as may be required by Agent
      in connection therewith;

     

    
      
        
        

      

      
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    (viii) Concurrently
      with delivery of the notice referred to in clause
      (i)
      above,
      Borrower shall have delivered to Agent, in form and substance reasonably
      satisfactory to Agent:

     

    (A) a
      pro
      forma consolidated and consolidating balance sheet, income statement and cash
      flow statement of Borrower and its Subsidiaries (the “Acquisition
      Pro Forma”),
      based
      on recent financial statements, which shall be complete and shall fairly present
      in all material respects the assets, liabilities, financial condition and
      results of operations of Borrower and its Subsidiaries in accordance with GAAP
      consistently applied, but taking into account such Permitted Acquisition and
      the
      funding of all Loans in connection therewith, and such Acquisition Pro Forma
      shall reflect that (x) with respect to a Permitted Acquisition of any Target
      that is a Domestic Subsidiary,
      on a
      pro forma basis, Borrower and its Subsidiaries would have had (1) a Senior
      Leverage Ratio not in excess of 3.00 to 1.00, and (2) a Total Leverage Ratio
      not
      in excess of 3.50 to 1.00, and,
      with
      respect to a Permitted Acquisition of any Target that is a Foreign Subsidiary
      of
      a US Credit Party, on a pro forma basis, Borrower and its Subsidiaries would
      have had (1) a Senior Leverage Ratio not in excess of 2.00 to 1.00, and (2)
      a
      Total Leverage Ratio not in excess of 2.50 to 1.00, in each case, calculated
      using EBITDA for the twelve Fiscal Month period ended at the end of Fiscal
      Month
      for which financial statements have most recently been required to delivered
      to
      Agent pursuant to paragraph (a) of Annex
      E
      prior to
      the consummation of such Permitted Acquisition (as adjusted for such Permitted
      Acquisition in accordance with clause (y) of the second sentence of the
      definition of EBITDA and Section
      6.1(viii)(D)
      below)
      and calculated using Senior Indebtedness and Indebtedness, as applicable, after
      giving effect to such Permitted Acquisition and all Loans funded in connection
      therewith as of the date of such Permitted Acquisition, (y) Borrowing
      Availability (after giving effect to such Permitted Acquisition and all Loans
      funded in connection therewith) shall be no less than $5,000,000, and
      (z) on a pro forma basis, no Event of Default has occurred and is
      continuing or would result after giving effect to such Permitted Acquisition
      and
      Borrower would have been in compliance with the financial covenants set forth
      in
Annex
      G
      for the
      four quarter period reflected in the Compliance Certificate most recently
      delivered to Agent pursuant to Annex
      E
      prior to
      the consummation of such Permitted Acquisition (after giving effect to such
      Permitted Acquisition and all Loans funded in connection therewith as if made
      on
      the first day of such period);

     

    (B) updated
      versions of the most recently delivered consolidated and consolidating
      Projections covering the 1 year period commencing on the date of such Permitted
      Acquisition and otherwise prepared in accordance with the Projections (the
      “Acquisition
      Projections”)
      and
      based upon historical financial data of a recent date reasonably satisfactory
      to
      Agent, taking into account such Permitted Acquisition, which shall include
      a
      projected income statement of the Target for such period which demonstrates
      that
      the projected EBITDA of the Target for such period is positive;

     

    
      
        
        

      

      
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    (C) a
      certificate of the Borrower executed by the Chief Executive Officer of Borrower
      to the effect that: (w) Borrower (after taking into consideration all rights
      of
      contribution and indemnity such Borrower has against each of its Subsidiaries)
      will be Solvent upon the consummation of the Permitted Acquisition; (x) the
      Acquisition Pro Forma fairly presents the financial condition of Borrower (on
      a
      consolidated basis) as of the date thereof after giving effect to the Permitted
      Acquisition, (y) the Acquisition Projections are reasonable estimates of the
      future financial performance of Borrower and its Subsidiaries subsequent to
      the
      date thereof based upon the historical performance of Borrower and its
      Subsidiaries and the Target and show that (i) Borrower shall continue to be
      in
      compliance with the financial covenants set forth in Annex
      G
      for the
      1-year period thereafter and (ii) the projected EBITDA of the Target for the
      1-year period thereafter is positive, and (z) Borrower has completed its due
      diligence investigation with respect to the Target and such Permitted
      Acquisition, which investigation was conducted in a manner similar to that
      which
      would have been conducted by a prudent purchaser of a comparable business and
      the results of which investigation were delivered to Agent and Lenders;
      and

     

    (D) a
      certificate of the Borrower executed by the Chief Executive Officer of Borrower
      as to the historical EBITDA of the Target for each of the 12 Fiscal Months
      prior
      to the date of such Permitted Acquisition, which are proposed to be included
      in
      the calculation of Borrower’s consolidated net income in calculating EBITDA for
      any such period, provided the methodology of calculating such amounts shall
      be
      reasonably satisfactory to Agent;

     

    (ix) on
      or
      prior to the date of such Permitted Acquisition, Agent shall have received,
      in
      form and substance reasonably satisfactory to Agent, copies of the acquisition
      agreement and related agreements and instruments, and all opinions,
      certificates, lien search results and other documents reasonably requested
      by
      Agent, including those specified in the last sentence of Section 5.9;
      

     

    (x) Agent
      shall have received: (x) with respect to any Target that is a Domestic
      Subsidiary of a US Credit Party, Phase I Environmental Site Assessment Reports,
      consistent with American Society for Testing and Materials (ASTM) Standard
      E
      1527-00 (or the current ASTM standard for Phase I environmental site assessment
      reports), and applicable state requirements, and with respect to any Target
      that
      is a Foreign Subsidiary of a US Credit Party, environmental review and audit
      reports of the type customary in the applicable jurisdiction, in each case,
      with
      respect to all real property owned or leased by the Target, dated no more than
      6
      months prior to the Closing Date, prepared by environmental engineers reasonably
      satisfactory to Agent, all in form and substance reasonably satisfactory to
      Agent, in its sole discretion; (y) such environmental
      review and audit reports,
      including Phase II reports, with respect to any such real property as Agent
      shall have requested, and Agent shall be satisfied, in its sole discretion,
      with
      the contents of all such environmental reports; and (z) letters executed by
      the
      environmental firms preparing such environmental reports, in form and substance
      reasonably satisfactory to Agent, authorizing Agent and Lenders to rely on
      such
      reports; and

     

    
      
        
        

      

      
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    (xi) at
      the
      time of such Permitted Acquisition and after giving effect thereto, no Default
      or Event of Default has occurred and is continuing.

     

    6.2 Investments;
      Loans and Advances.
      Except
      as otherwise expressly permitted by this Section
      6,
      no
      Credit Party shall make or permit to exist any investment in, or make, accrue
      or
      permit to exist loans or advances of money to, any Person, through the direct
      or
      indirect lending of money, holding of securities or otherwise, except that:
      (a)
      Borrower may hold investments comprised of notes payable, or stock or other
      securities issued by Account Debtors to Borrower pursuant to negotiated
      agreements with respect to settlement of such Account Debtor’s Accounts in the
      ordinary course of business; (b) each Credit Party may maintain its existing
      investments in its Subsidiaries as of the Closing Date; (c) so long as Agent
      has
      not delivered an Activation Notice, no Default or Event of Default has occurred
      and is continuing and there is no outstanding Revolving Loan balance, Borrower
      may make investments, subject to Control Letters in favor of Agent for the
      benefit of Lenders or otherwise subject to a perfected security interest in
      favor of Agent for the benefit of Lenders, in Permitted Investments; (d) capital
      contributions by any US Credit Party to any wholly-owned direct Domestic
      Subsidiary thereof; (e) capital contributions by any Foreign Subsidiary of
      Borrower to any wholly-owned direct Foreign Subsidiary thereof; (f) capital
      contributions by any US Credit Party to any wholly-owned direct Foreign
      Subsidiary thereof permitted under clause (i) of Section
      6.3;
      and (g)
      Credit Parties may make loans and advances to employees for moving,
      entertainment, travel and other similar expenses in the ordinary course of
      business not to exceed $50,000 to any employee and not to exceed $250,000 in
      the
      aggregate at any time outstanding. No Credit Party shall permit the Foreign
      Subsidiaries to have cash or cash equivalents which at any time exceed in the
      aggregate the lesser of (i) $40,000,000, and (ii) an amount equal to EBITDA
      of
      the Borrower and its Subsidiaries for the twelve Fiscal Month period ended
      at
      the end of Fiscal Month for which financial statements have most recently been
      required to delivered to Agent pursuant to paragraph (a) of Annex
      E.

     

    6.3 Indebtedness.
      No
      Credit Party shall create, incur, assume or permit to exist any Indebtedness,
      except (without duplication) (a) Indebtedness secured by purchase money security
      interests and Capital Leases permitted in Section
      6.7(c);
      (b) the
      Loans and the other Obligations; (c) unfunded pension fund and other employee
      benefit plan obligations and liabilities to the extent they are permitted to
      remain unfunded under applicable law; (d) existing Indebtedness described in
      Disclosure
      Schedule (6.3)
      and
      refinancings, amendments or modifications thereof that do not have the effect
      of
      increasing the principal amount thereof or changing the amortization thereof
      (other than to extend the same) and that are otherwise on terms and conditions
      no less favorable to any Credit Party, Agent or any Lender, as determined by
      Agent, than the terms of the Indebtedness being refinanced, amended or modified;
      (e) Indebtedness specifically permitted under Section
      6.17;
      (f) the
      Closing Date Earnouts and other unsecured Subordinated Debt and unsecured
      Indebtedness consisting of Earnouts, in each case, incurred by the Credit
      Parties to finance the purchase price of a Permitted Acquisition at the time
      of
      closing of such Permitted Acquisition; (g) Indebtedness of the Foreign
      Subsidiaries of Borrower (other than Kenabell Holding or any other Foreign
      Subsidiary organized under the laws The Peoples Republic of China including
      Hong
      Kong), including any such Indebtedness described in Disclosure
      Schedule (6.3)
      and
      refinancings, amendments or modifications thereof, in an aggregate outstanding
      principal amount not exceeding $15,000,000 at any time; (h) Indebtedness
      consisting of intercompany loans and advances made by Borrower to any other
      US
      Credit Party that is a Guarantor or by any such Guarantor to Borrower
or
      by any
      Foreign Subsidiary of Borrower to another Foreign Subsidiary of
      Borrower
      or by
      any Foreign Subsidiary of Borrower to any US Credit Party; (i) Indebtedness
      consisting of intercompany loans and advances made by any US Credit Party to
      any
      Foreign Subsidiary of Borrower and capital contributions by any US Credit Party
      to any wholly-owned direct Foreign Subsidiary thereof, provided
      that,
      with respect to this clause (i), (A) no Default or Event of Default would occur
      and be continuing after giving effect to any such proposed intercompany
      loan
      or
      capital contribution,
      (B)
      Borrower shall have Borrowing Availability of not less than $1,000,000 after
      giving effect to such intercompany loan or capital contribution, and (C) the
      aggregate amount of such
      intercompany loans and capital contributions made
      after
      the Closing Date by the US Credit Parties to the Foreign Subsidiaries of
      Borrower (net of loan repayments, dividends and distributions made after the
      Closing Date by the Foreign Subsidiaries of Borrower to US Credit Parties)
      shall
      not exceed $2,000,000 (excluding any such intercompany loans and capital
      contributions made to finance the Acquisitions, Permitted Acquisitions or
      Capital Expenditures permitted hereunder); and (j) Indebtedness consisting
      of
      deferred payments of insurance premiums incurred in the ordinary course of
      business. Any Credit Party receiving any intercompany loan under the foregoing
      clauses (h) or (i), shall have executed and delivered to any Credit Party making
      such loan or advance, a demand note (collectively, the “Intercompany
      Notes”)
      to
      evidence any such intercompany Indebtedness, which Intercompany Notes shall
      be
      (x) in form and substance reasonably satisfactory to Agent and any Intercompany
      Notes held by a US Credit Party shall be pledged and delivered to Agent pursuant
      to the applicable Pledge Agreement or Security Agreement as additional
      collateral security for the Obligations and (y) subordinated to the Obligations
      of the Credit Parties hereunder in a manner reasonably satisfactory to
      Agent.

     

    
      
        
        

      

      
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    6.4 Affiliate
      Transactions.
      Except
      as otherwise expressly permitted in this Section
      6
      with
      respect to Affiliates, no Credit Party shall enter into or be a party to any
      transaction with any other Credit Party or any Affiliate thereof except in
      the
      ordinary course of and pursuant to the reasonable requirements of such Credit
      Party’s business and upon fair and reasonable terms that are no less favorable
      to such Credit Party than would be obtained in a comparable arm’s length
      transaction with a Person not an Affiliate of such Credit Party. All such
      transactions existing as of the date hereof are described in Disclosure
      Schedule (6.4(a)).

     

    6.5 Capital
      Structure and Business.
      No
      Credit Party shall (a) make any changes in any of its business objectives,
      purposes or operations that could in any way adversely affect the repayment
      of
      the Loans or any of the other Obligations or could reasonably be expected to
      have or result in a Material Adverse Effect, (b) make any change in its capital
      structure as described in Disclosure
      Schedule (3.8),
      including the issuance or sale of any shares of Stock, warrants or other
      securities convertible into Stock or any revision of the terms of its
      outstanding Stock; provided,
      that
      Borrower may issue or sell its common Stock and warrants or other securities
      convertible into its common Stock so long as (i) the proceeds thereof are
      applied in prepayment of the Obligations to the extent required by Section
      1.3(b)(iii),
      and
      (ii) no Change of Control occurs after giving effect thereto, or (c) amend
      its
      charter or bylaws in a manner that would adversely affect Agent or Lenders
      or
      such Credit Party’s duty or ability to repay the Obligations. No Credit Party
      shall engage in any business other than the businesses currently engaged in
      by
      it or businesses reasonably related thereto.

     

    
      
        
        

      

      
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    6.6 Guaranteed
      Indebtedness.
      No
      Credit Party shall create, incur, assume or permit to exist any Guaranteed
      Indebtedness except (a) by endorsement of instruments or items of payment for
      deposit to the general account of any Credit Party, and (b) for Guaranteed
      Indebtedness incurred for the benefit of any other Credit Party if the primary
      obligation is expressly permitted by this Agreement; provided
      that no
      US Credit Party may guaranty any Indebtedness incurred pursuant to Section
      6.3(g)
      except
      for any guaranties existing as of the Closing Date and described on Disclosure
      Schedule (6.6).

     

    6.7 Liens.
      No
      Credit Party shall create, incur, assume or permit to exist any Lien on or
      with
      respect to its Accounts or any of its other properties or assets (whether now
      owned or hereafter acquired) except for (a) Permitted Encumbrances; (b) Liens
      in
      existence on the date hereof and summarized on Disclosure
      Schedule (6.7)
      securing
      Indebtedness described on Disclosure
      Schedule (6.3)
      and
      permitted refinancings, extensions and renewals thereof, including extensions
      or
      renewals of any such Liens; provided that the principal amount so secured is
      not
      increased and the Lien does not attach to any other property; (c) Liens created
      after the date hereof by conditional sale or other title retention agreements
      (including Capital Leases) or in connection with purchase money Indebtedness
      with respect to Equipment and Fixtures acquired by any Credit Party in the
      ordinary course of business, involving the incurrence of an aggregate amount
      of
      purchase money Indebtedness and Capital Lease Obligations of not more than
      $1,000,000 outstanding at any one time for all such Liens (provided that such
      Liens attach only to the assets subject to such purchase money debt and such
      Indebtedness is incurred within 20 days following such purchase and does not
      exceed 100% of the purchase price of the subject assets); and (d) Liens securing
      Indebtedness of certain Foreign Subsidiaries of Borrower permitted under
Section
      6.3(g);
      provided
      such
      Liens (x) do not encumber any Stock of any Foreign Subsidiary, and (y) only
      encumber assets of such Foreign Subsidiaries. In addition, no Credit Party
      shall
      become a party to any agreement, note, indenture or instrument, or take any
      other action, that would prohibit the creation of a Lien on any of its
      properties or other assets in favor of Agent, on behalf of itself and Lenders,
      as additional collateral for the Obligations, except operating leases, Capital
      Leases or Licenses which prohibit Liens upon the assets that are subject
      thereto.

     

    6.8 Sale
      of Stock and Assets.
      No
      Credit Party shall sell, transfer, convey, assign or otherwise dispose of any
      of
      its properties or other assets, including the Stock of any of its Subsidiaries
      (whether in a public or a private offering or otherwise) or any of its Accounts,
      other than (a) the sale of Inventory in the ordinary course of business, (b)
      the
      sale, transfer, conveyance or other disposition by a Credit Party of Equipment,
      Fixtures or Real Estate that are obsolete, (c) the sale, transfer, conveyance
      or
      other disposition by a Credit Party of Equipment, Fixtures or Real Estate having
      a value not exceeding $500,000 in any single transaction or $2,000,000 in the
      aggregate in any Fiscal Year, and (d) transfers contemplated under the BetaTHERM
      Reorganization. With respect to any disposition of assets or other properties
      permitted pursuant to clauses (b) and (c) above, subject to Section 1.3(b),
      Agent
      agrees on reasonable prior written notice to release its Lien on such assets
      or
      other properties in order to permit the applicable Credit Party to effect such
      disposition and shall execute and deliver to Borrower, at Borrower’s expense,
      appropriate UCC-3 termination statements and other releases as reasonably
      requested by Borrower.

     

    
      
        
        

      

      
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    6.9 ERISA.
      No
      Credit Party shall, or shall cause or permit any ERISA Affiliate to, cause
      or
      permit to occur an event that could result in the imposition of a Lien under
      Section 412 of the IRC or Section 302 or 4068 of ERISA or cause or permit to
      occur an ERISA Event to the extent such ERISA Event could reasonably be expected
      to have a Material Adverse Effect.

     

    6.10 Financial
      Covenants.
      Borrower shall not breach or fail to comply with any of the Financial
      Covenants.

     

    6.11 Hazardous
      Materials.
      No
      Credit Party shall cause or permit a Release of any Hazardous Material on,
      at,
      in, under, above, to, from or about any of the Real Estate where such Release
      would (a) violate in any respect, or form the basis for any Environmental
      Liabilities under, any Environmental Laws or Environmental Permits or (b)
      otherwise adversely impact the value or marketability of any of the Real Estate
      or any of the Collateral, other than such violations or Environmental
      Liabilities that could not reasonably be expected to have a Material Adverse
      Effect.

     

    6.12 Sale-Leasebacks.
      No
      Credit Party shall engage in any sale-leaseback, synthetic lease or similar
      transaction involving any of its assets.

     

    6.13 Cancellation
      of Indebtedness.
      No
      Credit Party shall cancel any claim or debt owing to it, except for reasonable
      consideration negotiated on an arm’s-length basis and in the ordinary course of
      its business consistent with past practices.

     

    6.14 Restricted
      Payments.
      No
      Credit Party shall make any Restricted Payment, except (a) intercompany
      loans and advances between Borrower and its Subsidiaries to the extent permitted
      by Section
      6.3,
      (b) dividends and distributions by Subsidiaries of Borrower paid to
      Borrower, (c) employee loans permitted under Section
      6.2(g),
      (d) payments of principal and interest of Intercompany Notes issued in
      accordance with Section
      6.3,
      (e) payments of principal of and interest on Subordinated Debt to the
      extent expressly permitted under the subordination provisions and agreements
      relating thereto, and (f) repurchase or redemption by Borrower of its Stock
      in
      an aggregate amount not exceeding $1,000,000 in any Fiscal Year and not
      exceeding $4,000,000 after the Closing Date.

     

    6.15 Change
      of Corporate Name or Location; Change of Fiscal Year.
      No US
      Credit Party shall (a) change its name as it appears in official filings in
      the
      state of its incorporation or other organization, (b) change its chief executive
      office, principal place of business, corporate offices or warehouses or
      locations at which Collateral is held or stored, or the location of its records
      concerning the Collateral, (c) change the type of entity that it is, (d) change
      its organization identification number, if any, issued by its state of
      incorporation or other organization, or (e) change its state of incorporation
      or
      organization, in each case without at least 30 days prior written notice to
      Agent and after Agent’s written acknowledgment that any reasonable action
      requested by Agent in connection therewith, including to continue the perfection
      of any Liens in favor of Agent, on behalf of Lenders, in any Collateral, has
      been completed or taken, and provided
      that any
      such new location shall be in the continental United States. No
      Credit
      Party shall change its Fiscal Year.

     

    
      
        
        

      

      
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    6.16 No
      Impairment of Intercompany Transfers.
      No
      Credit Party shall directly or indirectly enter into or become bound by any
      agreement, instrument, indenture or other obligation that could directly or
      indirectly restrict, prohibit or require the consent of any Person with respect
      to the payment of dividends or distributions or the making or repayment of
      intercompany loans by a Subsidiary of Borrower to Borrower, other than such
      restrictions under the Loan Documents and such restrictions on Foreign
      Subsidiaries of Borrower pursuant to documents evidencing Indebtedness of such
      Foreign Subsidiaries permitted under clause (g) of Section
      6.3).

     

    6.17 No
      Speculative Transactions.
      No
      Credit Party shall engage in any transaction involving commodity options,
      futures contracts or similar transactions, except solely to hedge against
      fluctuations in the prices of commodities owned or purchased by it and the
      values of foreign currencies receivable or payable by it and interest swaps,
      caps or collars.

     

    6.18 Changes
      Relating to the Acquisition Agreements.
      Without
      the prior written consent of Agent, no
      Credit
      Party shall change or amend the terms of the BetaTHERM Acquisition Agreement
      or
      the YSIS Acquisition Agreement in any manner materially adverse to the Credit
      Parties.

     

    6.19 Intermediate
      Holdings.
      Intermediate Holdings shall not engage in any trade or business, or own any
      assets (other than Stock of its Subsidiaries) or incur any Indebtedness (other
      than Indebtedness consisting of subordinated intercompany loans and advances
      permitted by Section
      6.3(h))
      or
      Guaranteed Indebtedness (other than the Obligations).

     

    7. TERM

     

    7.1 Termination.
      The
      financing arrangements contemplated hereby shall be in effect until the
      Commitment Termination Date, and the Loans and all other Obligations (other
      than
      Rate Management Obligations) shall be automatically due and payable in full
      on
      such date.

     

    7.2 Survival
      of Obligations Upon Termination of Financing Arrangements.
      Except
      as otherwise expressly provided for in the Loan Documents, no termination or
      cancellation (regardless of cause or procedure) of any financing arrangement
      under this Agreement shall in any way affect or impair the obligations, duties
      and liabilities of the Credit Parties or the rights of Agent and Lenders
      relating to any unpaid portion of the Loans or any other Obligations, due or
      not
      due, liquidated, contingent or unliquidated or any transaction or event
      occurring prior to such termination, or any transaction or event, the
      performance of which is required after the Commitment Termination Date. Except
      as otherwise expressly provided herein or in any other Loan Document, all
      undertakings, agreements, covenants, warranties and representations of or
      binding upon the Credit Parties, and all rights of Agent and each Lender, all
      as
      contained in the Loan Documents, shall not terminate or expire, but rather
      shall
      survive any such termination or cancellation and shall continue in full force
      and effect until the Termination Date; provided,
      that
      the provisions of Section
      11,
      the
      payment obligations under Sections
      1.15 and 1.16,
      and the
      indemnities contained in the Loan Documents shall survive the Termination
      Date.

     

    
      
        
        

      

      
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    8. EVENTS
      OF DEFAULT; RIGHTS AND REMEDIES

     

    8.1 Events
      of Default.
      The
      occurrence of any one or more of the following events (regardless of the reason
      therefor) shall constitute an “Event
      of Default”
      hereunder:

     

    (a) Borrower
      (i) fails to make any payment of principal of the Loans when due and payable,
      (ii) fails to make any payment of interest on, or Fees owing in respect of,
      the
      Loans or any of the other Obligations within 5 days of the due date or (iii)
      fails to pay or reimburse Agent or Lenders for any expense reimbursable
      hereunder or under any other Loan Document within 10 days following Agent’s
      demand for such reimbursement or payment of expenses.

     

    (b) Any
      Credit Party fails or neglects to perform, keep or observe any of the provisions
      of Sections
      1.4, 1.8, 5.4(a), 5.15 or 6,
      or any
      of the provisions set forth in Annexes
      C or G,
      respectively.

     

    (c) Borrower
      fails or neglects to perform, keep or observe any of the provisions of
Section
      4
      or any
      provisions set forth in Annex
      E,
      and the
      same shall remain unremedied for 3 days or more.

     

    (d) Any
      Credit Party fails or neglects to perform, keep or observe any other provision
      of this Agreement or of any of the other Loan Documents (other than any
      provision embodied in or covered by any other clause of this Section
      8.1)
      and the
      same shall remain unremedied for 20 days or more.

     

    (e) A
      default
      or breach occurs under any other agreement, document or instrument to which
      any
      Credit Party is a party that is not cured within any applicable grace period
      therefor, and such default or breach (i) involves the failure to make any
      payment when due in respect of any Indebtedness or Guaranteed Indebtedness
      (other than the Obligations) of any Credit Party in excess of $500,000 in the
      aggregate (including (x) undrawn committed or available amounts and (y) amounts
      owing to all creditors under any combined or syndicated credit arrangements),
      or
      (ii) causes, or permits any holder of such Indebtedness or Guaranteed
      Indebtedness or a trustee to cause, Indebtedness or Guaranteed Indebtedness
      or a
      portion thereof in excess of $500,000 in the aggregate to become due prior
      to
      its stated maturity or prior to its regularly scheduled dates of payment, or
      cash collateral to be demanded in respect thereof, in each case, regardless
      of
      whether such default is waived, or such right is exercised, by such holder
      or
      trustee.

     

    (f) Any
      representation or warranty herein or in any Loan Document or in any written
      statement, report, financial statement or certificate made or delivered to
      Agent
      or any Lender by any Credit Party is untrue or incorrect in any material respect
      as of the date when made or deemed made.

     

    (g) Assets
      of
      any Credit Party with a fair market value of $250,000 or more are attached,
      seized, levied upon or subjected to a writ or distress warrant, or come within
      the possession of any receiver, trustee, custodian or assignee for the benefit
      of creditors of any Credit Party and such condition continues for 30 days or
      more.

     

    
      
        
        

      

      
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    (h) A
      case or
      proceeding is commenced against any Credit Party seeking a decree or order
      in
      respect of such Credit Party (i) under the Bankruptcy Code or any other
      applicable federal, state or foreign bankruptcy or other similar law, (ii)
      appointing a custodian, receiver, liquidator, assignee, trustee or sequestrator
      (or similar official) for such Credit Party or for any substantial part of
      any
      such Credit Party’s assets, or (iii) ordering the winding-up or liquidation
      of the affairs of such Credit Party, and such case or proceeding shall remain
      undismissed or unstayed for 60 days or more or a decree or order granting the
      relief sought in such case or proceeding by a court of competent
      jurisdiction.

     

    (i) Any
      Credit Party (i) files a petition seeking relief under the Bankruptcy Code
      or
      any other applicable federal, state or foreign bankruptcy or other similar
      law,
      (ii) consents to or fails to contest in a timely and appropriate manner to
      the
      institution of proceedings thereunder or to the filing of any such petition
      or
      to the appointment of or taking possession by a custodian, receiver, liquidator,
      assignee, trustee or sequestrator (or similar official) for such Credit Party
      or
      for any substantial part of any such Credit Party’s assets, (iii) makes an
      assignment for the benefit of creditors, or (iv) takes any action in furtherance
      of any of the foregoing, or (v) admits in writing its inability to, or is
      generally unable to, pay its debts as such debts become due.

     

    (j) A
      final
      judgment or judgments for the payment of money in excess of $500,000 in the
      aggregate at any time are outstanding against one or more of the Credit Parties
      and the same are not, within 30 days after the entry thereof, discharged or
      execution thereof stayed or bonded pending appeal, or such judgments are not
      discharged prior to the expiration of any such stay.

     

    (k) Any
      material provision of any Loan Document for any reason ceases to be valid,
      binding and enforceable in accordance with its terms (or any Credit Party shall
      challenge the enforceability of any Loan Document or shall assert in writing,
      or
      engage in any action or inaction based on any such assertion, that any provision
      of any of the Loan Documents has ceased to be or otherwise is not valid, binding
      and enforceable in accordance with its terms), or any Lien created under any
      Loan Document ceases to be a valid and perfected first priority Lien (except
      as
      otherwise permitted herein or therein) in any of the Collateral purported to
      be
      covered thereby.

     

    (l) Any
      Change of Control occurs.

     

    (m) Any
      event
      occurs, whether or not insured or insurable, as a result of which
      revenue-producing activities cease or are substantially curtailed at any owned
      or leased facility of Borrower generating more than 20% of Borrower’s revenues
      for the Fiscal Year preceding such event and such cessation or curtailment
      continues for more than 20 days.

     

    (n) The
      BetaTHERM Acquisition (including payment of the purchase price and transfer
      of
      the Shares (as defined in the BetaTHERM Acquisition Agreement) to the Credit
      Parties) shall fail to be consummated in accordance with the terms of the
      BetaTHERM Acquisition Agreement within one (1) Business Day after the Closing
      Date.

     

    
      
        
        

      

      
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    (o) The
      YSIS
      Acquisition (including payment of the purchase price and transfer of the Shares
      (as defined in the YSIS Acquisition Agreement) to the Credit Parties) shall
      fail
      to be consummated in accordance with the terms of the YSIS Acquisition Agreement
      by 5:00 p.m. New York time on the Closing Date.

     

    8.2 Remedies.

     

    (a) If
      any
      Default or Event of Default has occurred and is continuing, Agent may (and
      at
      the written request of the Requisite Lenders shall), without notice, suspend
      the
      Revolving Loan facility with respect to additional Advances and/or the
      incurrence of additional Letter of Credit Obligations, whereupon any additional
      Advances and additional Letter of Credit Obligations shall be made or incurred
      in Agent’s sole discretion (or in the sole discretion of the Requisite Lenders,
      if such suspension occurred at their direction) so long as such Default or
      Event
      of Default is continuing. If any Default or Event of Default has occurred and
      is
      continuing, Agent may (and at the written request of Requisite Lenders shall),
      without notice except as otherwise expressly provided herein, increase the
      rate
      of interest applicable to the Loans and the Letter of Credit Fees to the Default
      Rate.

     

    (b) If
      any
      Event of Default has occurred and is continuing, Agent may (and at the written
      request of the Requisite Lenders shall), without notice: (i) terminate the
      Revolving Loan facility with respect to further Advances or the incurrence
      of
      further Letter of Credit Obligations; (ii) declare all or any portion of
      the Obligations (other than Rate Management Obligations), including all or
      any
      portion of any Loan to be forthwith due and payable, and require that the Letter
      of Credit Obligations be cash collateralized as provided in Annex
      B
      and
      require that the Rate Management Obligations be cash collateralized as provided
      in Section
      1.18,
      all
      without presentment, demand, protest or further notice of any kind, all of
      which
      are expressly waived by Borrower and each other Credit Party; or
      (iii) exercise any rights and remedies provided to Agent under the Loan
      Documents or at law or equity, including all remedies provided under the Code;
      provided, that upon the occurrence of an Event of Default specified in
Sections
      8.1(h) or (i),
      the
      Revolving Loan facility shall be immediately terminated and all of the
      Obligations
      (other
      than Rate Management Obligations),
      including the Revolving Loan, shall become immediately due and payable without
      declaration, notice or demand by any Person.

     

    8.3 Waivers
      by Credit Parties.
      Except
      as otherwise provided for in this Agreement or by applicable law, each Credit
      Party waives: (a) presentment, demand and protest and notice of presentment,
      dishonor, notice of intent to accelerate, notice of acceleration, protest,
      default, nonpayment, maturity, release, compromise, settlement, extension or
      renewal of any or all commercial paper, accounts, contract rights, documents,
      instruments, chattel paper and guaranties at any time held by Agent on which
      any
      Credit Party may in any way be liable, and hereby ratifies and confirms whatever
      Agent may do in this regard, (b) all rights to notice and a hearing prior to
      Agent’s taking possession or control of, or to Agent’s replevy, attachment or
      levy upon, the Collateral or any bond or security that might be required by
      any
      court prior to allowing Agent to exercise any of its remedies, and (c) the
      benefit of all valuation, appraisal, marshaling and exemption laws.

     

    
      
        
        

      

      
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    9. ASSIGNMENT
      AND PARTICIPATIONS; APPOINTMENT OF AGENT

     

    9.1 Assignment
      and Participations.

     

    (a) Subject
      to the terms of this Section
      9.1,
      any
      Lender may make an assignment to a Qualified Assignee of, or sale of
      participations in, at any time or times, the Loan Documents, Loans, Letter
      of
      Credit Obligations and any Commitment or any portion thereof or interest
      therein, including any Lender’s rights, title, interests, remedies, powers or
      duties thereunder. Any assignment by a Lender shall: (i) require the
      consent of Agent (which consent shall not be unreasonably withheld or delayed
      with respect to a Qualified Assignee and which consent shall not be required
      with respect to an assignment by a Lender to its Affiliate or an assignment
      by a
      Lender to another Lender) and the execution of an assignment agreement (an
      “Assignment
      Agreement”)
      substantially in the form attached hereto as Exhibit
      9.1(a)
      and
      otherwise in form and substance reasonably satisfactory to, and acknowledged
      by,
      Agent; (ii) after giving effect to any such partial assignment, the assignee
      Lender shall have Commitments in an amount at least equal to $3,000,000; and
      (iii) include a payment to Agent of an assignment fee of $3,500 (which fee
      shall
      not be payable with respect to an assignment by a Lender to its Affiliate or
      an
      assignment by a Lender to another Lender). In the case of an assignment by
      a
      Lender under this Section
      9.1,
      the
      assignee shall have, to the extent of such assignment, the same rights, benefits
      and obligations as all other Lenders hereunder. The assigning Lender shall
      be
      relieved of its obligations hereunder with respect to its Commitments or
      assigned portion thereof from and after the date of such assignment. Borrower
      hereby acknowledges and agrees that any assignment shall give rise to a direct
      obligation of Borrower to the assignee and that the assignee shall be considered
      to be a “Lender”. In all instances, each Lender’s liability to make Loans
      hereunder shall be several and not joint and shall be limited to such Lender’s
      Pro Rata Share of the applicable Commitment. In the event Agent or any Lender
      assigns or otherwise transfers all or any part of the Obligations, Agent or
      any
      such Lender shall so notify Borrower and Borrower shall, upon the request of
      Agent or such Lender, execute new Notes in exchange for the Notes, if any,
      being
      assigned. Notwithstanding the foregoing provisions of this Section
      9.1(a),
      any
      Lender may at any time pledge the Obligations held by it and such Lender’s
      rights under this Agreement and the other Loan Documents to a Federal Reserve
      Bank, and any lender that is an investment fund may assign the Obligations
      held
      by it and such Lender’s rights under this Agreement and the other Loan Documents
      to another investment fund managed by the same investment advisor; provided,
      that no such pledge to a Federal Reserve Bank shall release such Lender from
      such Lender’s obligations hereunder or under any other Loan
      Document.

     

    (b) Any
      participation by a Lender of all or any part of its Commitments shall be made
      with the understanding that all amounts payable by Borrower hereunder shall
      be
      determined as if that Lender had not sold such participation, and that the
      holder of any such participation shall not be entitled to require such Lender
      to
      take or omit to take any action hereunder except actions directly affecting
      (i)
      any reduction in the principal amount of, or interest rate or Fees payable
      with
      respect to, any Loan in which such holder participates, (ii) any extension
      of
      the scheduled amortization of the principal amount of any Loan in which such
      holder participates or the final maturity date thereof, and (iii) any release
      of
      all or substantially all of the Collateral (other than in accordance with the
      terms of this Agreement, the Collateral Documents or the other Loan Documents).
      Solely for purposes of Sections
      1.13, 1.15, 1.16
      and
9.8,
      Borrower acknowledges and agrees that a participation shall give rise to a
      direct obligation of Borrower to the participant and the participant shall
      be
      considered to be a “Lender”. Except as set forth in the preceding sentence
      neither Borrower nor any other Credit Party shall have any obligation or duty
      to
      any participant. Neither Agent nor any Lender (other than the Lender selling
      a
      participation) shall have any duty to any participant and may continue to deal
      solely with the Lender selling a participation as if no such sale had
      occurred.

     

    
      
        
        

      

      
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    (c) Except
      as
      expressly provided in this Section
      9.1,
      no
      Lender shall, as between Borrower and that Lender, or Agent and that Lender,
      be
      relieved of any of its obligations hereunder as a result of any sale,
      assignment, transfer or negotiation of, or granting of participation in, all
      or
      any part of the Loans, the Notes or other Obligations owed to such
      Lender.

     

    (d) Each
      US
      Credit Party executing this Agreement shall assist any Lender permitted to
      sell
      assignments or participations under this Section
      9.1
      as
      reasonably required to enable the assigning or selling Lender to effect any
      such
      assignment or participation, including the execution and delivery of any and
      all
      agreements, notes and other documents and instruments as shall be requested
      and
      the preparation of informational materials for, and the participation of
      management in meetings with, potential assignees or participants. Each US Credit
      Party executing this Agreement shall certify the correctness, completeness
      and
      accuracy of all descriptions of the Credit Parties and their respective affairs
      contained in any selling materials provided by it and all other information
      provided by it and included in such materials, except that any Projections
      delivered by Borrower shall only be certified by Borrower as having been
      prepared by Borrower in compliance with the representations contained in
Section
      3.4(c).

     

    (e) A
      Lender
      may furnish any information concerning Credit Parties in the possession of
      such
      Lender from time to time to assignees and participants (including prospective
      assignees and participants); provided that such Lender shall obtain from
      assignees or participants confidentiality covenants substantially equivalent
      to
      those contained in Section
      11.8.

     

    (f) Notwithstanding
      anything to the contrary contained herein, any Lender (a “Granting
      Lender”),
      may
      grant to a special purpose funding vehicle (an “SPC”),
      identified as such in writing by the Granting Lender to Agent and Borrower,
      the
      option to provide to Borrower all or any part of any Loans that such Granting
      Lender would otherwise be obligated to make to Borrower pursuant to this
      Agreement; provided that (i) nothing herein shall constitute a commitment by
      any
      SPC to make any Loan; and (ii) if an SPC elects not to exercise such option
      or
      otherwise fails to provide all or any part of such Loan, the Granting Lender
      shall be obligated to make such Loan pursuant to the terms hereof. The making
      of
      a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender
      to the same extent, and as if such Loan were made by such Granting Lender.
      No
      SPC shall be liable for any indemnity or similar payment obligation under this
      Agreement (all liability for which shall remain with the Granting Lender).
      Any
      SPC may (i) with notice to, but without the prior written consent of, Borrower
      and Agent and assign all or a portion of its interests in any Loans to the
      Granting Lender or to any financial institutions (consented to by Borrower
      and
      Agent) providing liquidity and/or credit support to or for the account of such
      SPC to support the funding or maintenance of Loans and (ii) disclose on a
      confidential basis any non-public information relating to its Loans to any
      rating agency, commercial paper dealer or provider of any surety, guarantee
      or
      credit or liquidity enhancement to such SPC. This Section
      9.1(g)
      may not
      be amended without the prior written consent of each Granting Lender, all or
      any
      of whose Loans are being funded by an SPC at the time of such amendment. For
      the
      avoidance of doubt, the Granting Lender shall for all purposes, including
      without limitation, the approval of any amendment or waiver of any provision
      of
      any Loan Document or the obligation to pay any amount otherwise payable by
      the
      Granting Lender under the Loan Documents, continue to be the Lender of record
      hereunder.

     

    
      
        
        

      

      
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    (g) Nothing
      contained in this Section 9 shall require the consent of any party for GE
      Capital to assign any of its rights in respect of any Swap Related Reimbursement
      Obligation.

     

    9.2 Appointment
      of Agent.
      GE
      Capital is hereby appointed to act on behalf of all Lenders as Agent under
      this
      Agreement and the other Loan Documents. The provisions of this Section
      9.2
      are
      solely for the benefit of Agent and Lenders and no Credit Party nor any other
      Person shall have any rights as a third party beneficiary of any of the
      provisions hereof. In performing its functions and duties under this Agreement
      and the other Loan Documents, Agent shall act solely as an agent of Lenders
      and
      does not assume and shall not be deemed to have assumed any obligation toward
      or
      relationship of agency or trust with or for any Credit Party or any other
      Person. Agent shall have no duties or responsibilities except for those
      expressly set forth in this Agreement and the other Loan Documents. The duties
      of Agent shall be mechanical and administrative in nature and Agent shall not
      have, or be deemed to have, by reason of this Agreement, any other Loan Document
      or otherwise a fiduciary relationship in respect of any Lender. Except as
      expressly set forth in this Agreement and the other Loan Documents, Agent shall
      not have any duty to disclose, and shall not be liable for failure to disclose,
      any information relating to any Credit Party or any of their respective
      Subsidiaries or any Account Debtor that is communicated to or obtained by GE
      Capital or any of its Affiliates in any capacity. Neither Agent nor any of
      its
      Affiliates nor any of their respective officers, directors, employees, agents
      or
      representatives shall be liable to any Lender for any action taken or omitted
      to
      be taken by it hereunder or under any other Loan Document, or in connection
      herewith or therewith, except for damages caused by its or their own gross
      negligence or willful misconduct.

     

    If
      Agent
      shall request instructions from Requisite Lenders or all affected Lenders with
      respect to any act or action (including failure to act) in connection with
      this
      Agreement or any other Loan Document, then Agent shall be entitled to refrain
      from such act or taking such action unless and until Agent shall have received
      instructions from Requisite Lenders or all affected Lenders, as the case may
      be,
      and Agent shall not incur liability to any Person by reason of so refraining.
      Agent shall be fully justified in failing or refusing to take any action
      hereunder or under any other Loan Document (a) if such action would, in the
      opinion of Agent, be contrary to law or the terms of this Agreement or any
      other
      Loan Document, (b) if such action would, in the opinion of Agent, expose Agent
      to Environmental Liabilities or (c) if Agent shall not first be indemnified
      to
      its satisfaction against any and all liability and expense which may be incurred
      by it by reason of taking or continuing to take any such action. Without
      limiting the foregoing, no Lender shall have any right of action whatsoever
      against Agent as a result of Agent acting or refraining from acting hereunder
      or
      under any other Loan Document in accordance with the instructions of Requisite
      Lenders or all affected Lenders, as applicable.

     

    9.3 Agent’s
      Reliance, Etc.
      Neither
      Agent nor any of its Affiliates nor any of their respective directors, officers,
      agents or employees shall be liable for any action taken or omitted to be taken
      by it or them under or in connection with this Agreement or the other Loan
      Documents, except for damages caused by its or their own gross negligence or
      willful misconduct. Without limiting the generality of the foregoing, Agent:
      (a)
      may treat the payee of any Note as the holder thereof until Agent receives
      written notice of the assignment or transfer thereof signed by such payee and
      in
      form reasonably satisfactory to Agent; (b) may consult with legal counsel,
      independent public accountants and other experts selected by it and shall not
      be
      liable for any action taken or omitted to be taken by it in good faith in
      accordance with the advice of such counsel, accountants or experts;
      (c) makes no warranty or representation to any Lender and shall not be
      responsible to any Lender for any statements, warranties or representations
      made
      in or in connection with this Agreement or the other Loan Documents; (d) shall
      not have any duty to ascertain or to inquire as to the performance or observance
      of any of the terms, covenants or conditions of this Agreement or the other
      Loan
      Documents on the part of any Credit Party or to inspect the Collateral
      (including the books and records) of any Credit Party; (e) shall not be
      responsible to any Lender for the due execution, legality, validity,
      enforceability, genuineness, sufficiency or value of this Agreement or the
      other
      Loan Documents or any other instrument or document furnished pursuant hereto
      or
      thereto; and (f) shall incur no liability under or in respect of this Agreement
      or the other Loan Documents by acting upon any notice, consent, certificate
      or
      other instrument or writing (which may be by telecopy, telegram, cable or telex)
      believed by it to be genuine and signed or sent by the proper party or
      parties.

     

    
      
        
        

      

      
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    9.4 GE
      Capital and Affiliates.
      With
      respect to its Commitments hereunder, GE Capital shall have the same rights
      and powers under this Agreement and the other Loan Documents as any other Lender
      and may exercise the same as though it were not Agent; and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated, include GE Capital in its
      individual capacity. GE Capital and its Affiliates may lend money to, invest
      in,
      and generally engage in any kind of business with, any Credit Party, any of
      their Affiliates and any Person who may do business with or own securities
      of
      any Credit Party or any such Affiliate, all as if GE Capital were not Agent
      and
      without any duty to account therefor to Lenders. GE Capital and its Affiliates
      may accept fees and other consideration from any Credit Party for services
      in
      connection with this Agreement or otherwise without having to account for the
      same to Lenders. No Lender identified on the facing page or signature pages
      of
      this Agreement as a “syndication agent”
      or
“documentation agent”
      shall
      have any right, power, obligation, liability, responsibility or duty under
      this
      Agreement other than those applicable to a Lender as such. Without limiting
      the
      foregoing, no Lender so identified as a “syndication agent” or “documentation
      agent” 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 so identified in deciding to enter into this Agreement or
      in
      taking or not taking action hereunder.

     

    9.5 Lender
      Credit Decision.
      Each
      Lender acknowledges that it has, independently and without reliance upon Agent
      or any other Lender and based on the Financial Statements referred to in
Section
      3.4(a)
      and such
      other documents and information as it has deemed appropriate, made its own
      credit and financial analysis of the Credit Parties and its own decision to
      enter into this Agreement. Each Lender also acknowledges that it will,
      independently and without reliance upon Agent or any other Lender and based
      on
      such documents and information as it shall deem appropriate at the time,
      continue to make its own credit decisions in taking or not taking action under
      this Agreement. Each Lender acknowledges the potential conflict of interest
      of
      each other Lender as a result of Lenders holding disproportionate interests
      in
      the Loans, and expressly consents to, and waives any claim based upon, such
      conflict of interest.

     

    
      
        
        

      

      
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    9.6 Indemnification.
      Lenders
      agree to indemnify Agent (to the extent not reimbursed by Credit Parties and
      without limiting the obligations of Borrower hereunder), ratably according
      to
      their respective Pro Rata Shares, from and against any and all liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses or disbursements of any kind or nature whatsoever that may be imposed
      on, incurred by, or asserted against Agent in any way relating to or arising
      out
      of this Agreement or any other Loan Document or any action taken or omitted
      to
      be taken by Agent in connection therewith; provided,
      that no
      Lender shall be liable for any portion of such liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      resulting from Agent’s gross negligence or willful misconduct. Without limiting
      the foregoing, each Lender agrees to reimburse Agent promptly upon demand for
      its ratable share of any out-of-pocket expenses (including reasonable counsel
      fees) incurred by Agent in connection with the preparation, execution, delivery,
      administration, modification, amendment or enforcement (whether through
      negotiations, legal proceedings or otherwise) of, or legal advice in respect
      of
      rights or responsibilities under, this Agreement and each other Loan Document,
      to the extent that Agent is not reimbursed for such expenses by Credit
      Parties.

     

    9.7 Successor
      Agent.
      Agent
      may resign at any time by giving not less than 30 days’ prior written notice
      thereof to Lenders and Borrower. Upon any such resignation, the Requisite
      Lenders shall have the right to appoint a successor Agent. If no successor
      Agent
      shall have been so appointed by the Requisite Lenders and shall have accepted
      such appointment within 30 days after the resigning Agent’s giving notice of
      resignation, then the resigning Agent may, on behalf of Lenders, appoint a
      successor Agent, which shall be a Lender, if a Lender is willing to accept
      such
      appointment, or otherwise shall be a commercial bank or financial institution
      or
      a subsidiary of a commercial bank or financial institution if such commercial
      bank or financial institution is organized under the laws of the United States
      of America or of any State thereof and has a combined capital and surplus of
      at
      least $300,000,000. If no successor Agent has been appointed pursuant to the
      foregoing, within 30 days after the date such notice of resignation was given
      by
      the resigning Agent, such resignation shall become effective and the Requisite
      Lenders shall thereafter perform all the duties of Agent hereunder until such
      time, if any, as the Requisite Lenders appoint a successor Agent as provided
      above. Any successor Agent appointed by Requisite Lenders hereunder shall be
      subject to the approval of Borrower, such approval not to be unreasonably
      withheld or delayed; provided
      that
      such approval shall not be required if a Default or an Event of Default has
      occurred and is continuing. Upon the acceptance of any appointment as Agent
      hereunder by a successor Agent, such successor Agent shall succeed to and become
      vested with all the rights, powers, privileges and duties of the resigning
      Agent. Upon the earlier of the acceptance of any appointment as Agent hereunder
      by a successor Agent or the effective date of the resigning Agent’s resignation,
      the resigning Agent shall be discharged from its duties and obligations under
      this Agreement and the other Loan Documents, except that any indemnity rights
      or
      other rights in favor of such resigning Agent shall continue. After any
      resigning Agent’s resignation hereunder, the provisions of this Section
      9
      shall
      inure to its benefit as to any actions taken or omitted to be taken by it while
      it was acting as Agent under this Agreement and the other Loan
      Documents.

     

    
      
        
        

      

      
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    9.8 Setoff
      and Sharing of Payments.
      In
      addition to any rights now or hereafter granted under applicable law and not
      by
      way of limitation of any such rights, upon the occurrence and during the
      continuance of any Event of Default and subject to Section
      9.9(f),
      each
      Lender is hereby authorized at any time or from time to time, without notice
      to
      any Credit Party or to any other Person, any such notice being hereby expressly
      waived, to offset and to appropriate and to apply any and all balances held
      by
      it at any of its offices for the account of Borrower or any Guarantor
      (regardless of whether such balances are then due to Borrower or any Guarantor)
      and any other properties or assets at any time held or owing by that Lender
      or
      that holder to or for the credit or for the account of Borrower or any Guarantor
      against and on account of any of the Obligations that are not paid when due.
      Any
      Lender exercising a right of setoff or otherwise receiving any payment on
      account of the Obligations in excess of its Pro Rata Share thereof shall
      purchase for cash (and the other Lenders or holders shall sell) such
      participations in each such other Lender’s or holder’s Pro Rata Share of the
      Obligations as would be necessary to cause such Lender to share the amount
      so
      offset or otherwise received with each other Lender or holder in accordance
      with
      their respective Pro Rata Shares, (other than offset rights exercised by any
      Lender with respect to Sections
      1.13, 1.15 or 1.16).
      Borrower and each Guarantor agrees, to the fullest extent permitted by law,
      that
      (a) any Lender may exercise its right to offset with respect to amounts in
      excess of its Pro Rata Share of the Obligations and may sell participations
      in
      such amounts so offset to other Lenders and holders and (b) any Lender so
      purchasing a participation in the Loans made or other Obligations held by other
      Lenders or holders may exercise all rights of offset, bankers’ lien,
      counterclaim or similar rights with respect to such participation as fully
      as if
      such Lender or holder were a direct holder of the Loans and the other
      Obligations in the amount of such participation. Notwithstanding the foregoing,
      if all or any portion of the offset amount or payment otherwise received is
      thereafter recovered from the Lender that has exercised the right of offset,
      the
      purchase of participations by that Lender shall be rescinded and the purchase
      price restored without interest.

     

    9.9 Advances;
      Payments; Non-Funding Lenders; Information; Actions in Concert.

     

    (a) Advances;
      Payments.

     

    (i) Agent
      shall notify Revolving Lenders, promptly after receipt of a Notice of Revolving
      Advance and in any event prior to 1:00 p.m. (New York time) on the date such
      Notice of Revolving Advance is received, by telecopy, telephone or other similar
      form of transmission. Each Revolving Lender shall make the amount of such
      Lender’s Pro Rata Share of such Revolving Credit Advance available to Agent in
      same day funds by wire transfer to Agent’s account as set forth in Annex
      H
      not
      later than 3:00 p.m. (New York time) on the requested funding date, in the
      case
      of an Index Rate Loan and not later than 11:00 a.m. (New York time) on the
      requested funding date in the case of a LIBOR Loan. After receipt of such wire
      transfers (or, in Agent’s sole discretion, before receipt of such wire
      transfers), subject to the terms hereof, Agent shall make the requested
      Revolving Credit Advance to Borrower. All payments by each Revolving Lender
      shall be made without setoff, counterclaim or deduction of any
      kind.

     

    (ii) On
      the
      first Business Day after receipt from Borrower of any payment of principal,
      interest and Fees or more frequently at Agent’s election (each, a “Settlement
      Date”),
      Agent
      shall advise each Lender by telephone, or telecopy of the amount of such
      Lender’s Pro Rata Share of principal, interest and Fees paid for the benefit of
      Lenders with respect to each applicable Loan. Provided that each Lender has
      funded all payments and Advances required to be made by it and purchased all
      participations required to be purchased by it under this Agreement and the
      other
      Loan Documents as of such Settlement Date, Agent shall pay to each Lender such
      Lender’s Pro Rata Share of principal,
      interest and Fees paid by Borrower since
      the
      previous Settlement Date for the benefit of such Lender on the Loans held by
      it.
      To the extent that any Lender (a “Non-Funding
      Lender”)
      has
      failed to fund all such payments and Advances or failed to fund the purchase
      of
      all such participations, Agent shall be entitled to set off the funding
      short-fall against that Non-Funding Lender’s Pro Rata Share of all payments
      received from Borrower. Such payments shall be made by wire transfer to such
      Lender’s account (as specified by such Lender in Annex
      H
      or the
      applicable Assignment Agreement) not later than 2:00 p.m. (New York time) on
      the
      next Business Day following each Settlement Date.

     

    
      
        
        

      

      
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    (b) Availability
      of Lender’s Pro Rata Share.
      Agent
      may assume that each Revolving Lender will make its Pro Rata Share of each
      Revolving Credit Advance available to Agent on each funding date. If such Pro
      Rata Share is not, in fact, paid to Agent by such Revolving Lender when due,
      Agent will be entitled to recover such amount on demand from such Revolving
      Lender without setoff, counterclaim or deduction of any kind. If any Revolving
      Lender fails to pay the amount of its Pro Rata Share forthwith upon Agent’s
      demand, Agent shall promptly notify Borrower and Borrower shall immediately
      repay such amount to Agent. Nothing in this Section
      9.9(b)
      or
      elsewhere in this Agreement or the other Loan Documents shall be deemed to
      require Agent to advance funds on behalf of any Revolving Lender or to relieve
      any Revolving Lender from its obligation to fulfill its Commitments hereunder
      or
      to prejudice any rights that Borrower may have against any Revolving Lender
      as a
      result of any default by such Revolving Lender hereunder. To the extent that
      Agent advances funds to Borrower on behalf of any Revolving Lender and is not
      reimbursed therefor on the same Business Day as such Advance is made, Agent
      shall be entitled to retain for its account all interest accrued on such Advance
      until reimbursed by the applicable Revolving Lender.

     

    (c) Return
      of Payments.

     

    (i) If
      Agent
      pays an amount to a Lender under this Agreement in the belief or expectation
      that a related payment has been or will be received by Agent from Borrower
      and
      such related payment is not received by Agent, then Agent will be entitled
      to
      recover such amount from such Lender on demand without setoff, counterclaim
      or
      deduction of any kind.

     

    (ii) If
      Agent
      determines at any time that any amount received by Agent under this Agreement
      must be returned to Borrower or paid to any other Person pursuant to any
      insolvency law or otherwise, then, notwithstanding any other term or condition
      of this Agreement or any other Loan Document, Agent will not be required to
      distribute any portion thereof to any Lender. In addition, each Lender will
      repay to Agent on demand any portion of such amount that Agent has distributed
      to such Lender, together with interest at such rate, if any, as Agent is
      required to pay to Borrower or such other Person, without setoff, counterclaim
      or deduction of any kind.

     

    
      
        
        

      

      
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    (d) Non-Funding
      Lenders.
      The
      failure of any Non-Funding Lender to make any Revolving Credit Advance or any
      payment required by it hereunder on the date specified therefor shall not
      relieve any other Lender (each such other Revolving Lender, an “Other
      Lender”)
      of its
      obligations to make such Advance or purchase such participation on such date,
      but neither any Other Lender nor Agent shall be responsible for the failure
      of
      any Non-Funding Lender to make an Advance, purchase a participation or make
      any
      other payment required hereunder. Notwithstanding anything set forth herein
      to
      the contrary, a Non-Funding Lender shall not have any voting or consent rights
      under or with respect to any Loan Document or constitute a “Lender” or a
“Revolving Lender” (or be included in the calculation of “Requisite Lenders”
hereunder) for any voting or consent rights under or with respect to any Loan
      Document. At Borrower’s request, Agent or a Person acceptable to Agent shall
      have the right with Agent’s consent and in Agent’s sole discretion (but shall
      have no obligation) to purchase from any Non-Funding Lender, and each
      Non-Funding Lender agrees that it shall, at Agent’s request, sell and assign to
      Agent or such Person, all of the Commitments of that Non-Funding Lender for
      an
      amount equal to the principal balance of all Loans held by such Non-Funding
      Lender and all accrued interest and fees with respect thereto through the date
      of sale, such purchase and sale to be consummated pursuant to an executed
      Assignment Agreement.

     

    (e) Dissemination
      of Information.
      Agent
      shall use reasonable efforts to provide Lenders with any notice of Default
      or
      Event of Default received by Agent from, or delivered by Agent to, any Credit
      Party, with notice of any Event of Default of which Agent has actually become
      aware and with notice of any action taken by Agent following any Event of
      Default; provided, that Agent shall not be liable to any Lender for any failure
      to do so, except to the extent that such failure is attributable to Agent’s
      gross negligence or willful misconduct. Lenders acknowledge that Borrower is
      required to provide Financial Statements to Lenders in accordance with
Annex
      E
      hereto
      and agree that Agent shall have no duty to provide the same to
      Lenders.

     

    (f) Actions
      in Concert.
      Anything in this Agreement to the contrary notwithstanding, each Lender hereby
      agrees with each other Lender that no Lender shall take any action to protect
      or
      enforce its rights arising out of this Agreement or the Notes (including
      exercising any rights of setoff) without first obtaining the prior written
      consent of Agent and Requisite Lenders, it being the intent of Lenders that
      any
      such action to protect or enforce rights under this Agreement and the Notes
      shall be taken in concert and at the direction or with the consent of Agent
      or
      Requisite Lenders.

     

    10. SUCCESSORS
      AND ASSIGNS

     

    10.1 Successors
      and Assigns.
      This
      Agreement and the other Loan Documents shall be binding on and shall inure
      to
      the benefit of each Credit Party signatory hereto, Agent, Lenders and their
      respective successors and assigns (including, in the case of any Credit Party,
      a
      debtor-in-possession on behalf of such Credit Party), except as otherwise
      provided herein or therein. No Credit Party may assign, transfer, hypothecate
      or
      otherwise convey its rights, benefits, obligations or duties hereunder or under
      any of the other Loan Documents without the prior express written consent of
      Agent and Lenders. Any such purported assignment, transfer, hypothecation or
      other conveyance by any Credit Party without the prior express written consent
      of Agent and Lenders shall be void. The terms and provisions of this Agreement
      are for the purpose of defining the relative rights and obligations of each
      Credit Party, Agent and Lenders with respect to the transactions contemplated
      hereby and no Person shall be a third party beneficiary of any of the terms
      and
      provisions of this Agreement or any of the other Loan Documents.

     

    
      
        
        

      

      
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    11. MISCELLANEOUS

     

    11.1 Complete
      Agreement; Modification of Agreement.
      The
      Loan Documents constitute the complete agreement between the parties with
      respect to the subject matter thereof and may not be modified, altered or
      amended except as set forth in Section
      11.2.
      Any
      letter of interest, commitment letter, or fee letter (other than the GE Capital
      Fee Letter) between any Credit Party and Agent or any Lender or any of their
      respective Affiliates, predating this Agreement and relating to a financing
      of
      substantially similar form, purpose or effect shall be superseded by this
      Agreement.

     

    11.2 Amendments
      and Waivers.

     

    (a) Except
      for actions expressly permitted to be taken by Agent, no amendment,
      modification, termination or waiver of any provision of this Agreement or any
      other Loan Document, or any consent to any departure by any Credit Party
      therefrom, shall in any event be effective unless the same shall be in writing
      and signed by Agent and Borrower, and by Requisite Lenders or all affected
      Lenders, as applicable. Except as set forth in clauses (b) and (c) below, all
      such amendments, modifications, terminations or waivers requiring the consent
      of
      any Lenders shall require the written consent of Requisite Lenders.

     

    (b) No
      amendment, modification, termination or waiver shall, unless in writing and
      signed by Agent and each Lender directly affected thereby: (i) increase the
      principal amount of any Lender’s Commitment (which action shall be deemed only
      to affect those Lenders whose Commitments are increased and may be approved
      by
      Agent and Requisite Lenders, including those lenders whose Commitments are
      increased); (ii) reduce the principal of, rate of interest on or Fees payable
      with respect to any Loan or Letter of Credit Obligations of any affected Lender;
      (iii) extend any scheduled payment date (other than payment dates of mandatory
      prepayments under Section
      1.3(b)(ii)-(iii))
      or
      final maturity date of the principal amount of any Loan of any affected Lender;
      (iv) waive, forgive, defer, extend or postpone any payment of interest or Fees
      as to any affected Lender; (v) except as otherwise permitted herein or in the
      other Loan Documents, release, or permit the Credit Parties to sell or otherwise
      dispose of, all or substantially all of the Collateral (which action shall
      be
      deemed to directly affect all Lenders); (vi) except as otherwise permitted
      herein, release any Guarantor of its obligations under a Guaranty; (vii) change
      the percentage of the Commitments or of the aggregate unpaid principal amount
      of
      the Loans that shall be required for Lenders or any of them to take any action
      hereunder; and (viii) amend or waive this Section
      11.2
      or the
      definitions of the terms “Requisite Lenders” insofar as such definition affect
      the substance of this Section
      11.2.
      Furthermore, no amendment, modification, termination or waiver affecting the
      rights or duties of Agent or L/C Issuer, or of GE Capital in respect of any
      Swap
      Related Reimbursement Obligations, under this Agreement or any other Loan
      Document, including any release of any Guaranty or Collateral requiring a
      writing signed by all Lenders, shall be effective unless in writing and signed
      by Agent or L/C Issuer or GE Capital, as the case may be, in addition to Lenders
      required hereinabove to take such action. Each amendment, modification,
      termination or waiver shall be effective only in the specific instance and
      for
      the specific purpose for which it was given. No amendment, modification,
      termination or waiver shall be required for Agent to take additional Collateral
      pursuant to any Loan Document. No amendment, modification, termination or waiver
      of any provision of any Note shall be effective without the written concurrence
      of the holder of that Note. No notice to or demand on any Credit Party in any
      case shall entitle such Credit Party or any other Credit Party to any other
      or
      further notice or demand in similar or other circumstances. Any amendment,
      modification, termination, waiver or consent effected in accordance with this
      Section
      11.2
      shall be
      binding upon each holder of the Notes at the time outstanding and each future
      holder of the Notes.

     

    
      
        
        

      

      
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    (c) If,
      in
      connection with any proposed amendment, modification, waiver or termination
      (a
“Proposed
      Change”):

     

    (i) requiring
      the consent of all affected Lenders, the consent of Requisite Lenders is
      obtained, but the consent of other Lenders whose consent is required is not
      obtained (any such Lender whose consent is not obtained as described in this
      clause
      (i)
      and in
clauses
      (ii), (iii) and (iv)
      below
      being referred to as a “Non-Consenting
      Lender”),
      or

     

    (ii) requiring
      the consent of Requisite Lenders, the consent of Lenders holding 51% or more
      of
      the aggregate Commitments is obtained, but the consent of Requisite Lenders
      is
      not obtained,

     

    (d) then,
      so
      long as Agent is not a Non-Consenting Lender, at Borrower’s request Agent, or a
      Person reasonably acceptable to Agent, shall have the right with Agent’s consent
      and in Agent’s sole discretion (but shall have no obligation) to purchase from
      such Non-Consenting Lenders, and such Non-Consenting Lenders agree that they
      shall, upon Agent’s request, sell and assign to Agent or such Person, all of the
      Commitments of such Non-Consenting Lenders for an amount equal to the principal
      balance of all Loans held by the Non-Consenting Lenders and all accrued interest
      and Fees with respect thereto through the date of sale, such purchase and sale
      to be consummated pursuant to an executed Assignment Agreement.

     

    Upon
      payment in full in cash and performance of all of the Obligations (other than
      indemnification Obligations and other than any Rate Management Obligations
      that,
      at such time, are allowed by the applicable Rate Management Provider to remain
      outstanding and are not required to be cash collateralized pursuant to the
      provisions of Section
      1.18),
      termination of the Commitments and a release of all claims against Agent and
      Lenders, and so long as no suits, actions proceedings, or claims are pending
      or
      threatened against any Indemnified Person asserting any damages, losses or
      liabilities that are Indemnified Liabilities, Agent shall deliver to Borrower
      termination statements, mortgage releases and other documents necessary or
      appropriate to evidence the termination of the Liens securing payment of the
      Obligations.

     

    11.3 Fees
      and Expenses.
      Borrower shall reimburse Agent (and, with respect to clauses
      (c) and (d)
      below,
      all Lenders) for all fees, costs and expenses, including the reasonable fees,
      costs and expenses of counsel, consultants or other advisors (including
      environmental and management consultants and appraisers) incurred in connection
      with the negotiation and preparation of the Loan Documents and incurred in
      connection with:

     

    
      
        
        

      

      
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    (a) the
      forwarding to Borrower or any other Person on behalf of Borrower by Agent of
      the
      proceeds of any Loan (including a wire transfer fee of $25 per wire
      transfer);

     

    (b) any
      amendment, modification or waiver of, or consent with respect to, or termination
      of, any of the Loan Documents or Related Transactions Documents or advice in
      connection with the syndication and administration of the Loans made pursuant
      hereto or its rights hereunder or thereunder;

     

    (c) any
      litigation, contest, dispute, suit, proceeding or action (whether instituted
      by
      Agent, any Lender, Borrower or any other Person and whether as a party, witness
      or otherwise) in any way relating to the Collateral, any of the Loan Documents
      or any other agreement to be executed or delivered in connection herewith or
      therewith, including any litigation, contest, dispute, suit, case, proceeding
      or
      action, and any appeal or review thereof, in connection with a case commenced
      by
      or against Borrower or any other Person that may be obligated to Agent by virtue
      of the Loan Documents, including any such litigation, contest, dispute, suit,
      proceeding or action arising in connection with any work-out or restructuring
      of
      the Loans during the pendency of one or more Events of Default; provided that
      in
      the case of reimbursement of counsel for Lenders other than Agent, such
      reimbursement shall be limited to one counsel for all such Lenders; provided,
      further, that no Person shall be entitled to reimbursement under this clause
      (c)
      in respect of any litigation, contest, dispute, suit, proceeding or action
      to
      the extent any of the foregoing results from such Person’s gross negligence or
      willful misconduct;

     

    (d) any
      attempt to enforce any remedies of Agent or any Lender against any or all of
      the
      Credit Parties or any other Person that may be obligated to Agent or any Lender
      by virtue of any of the Loan Documents, including any such attempt to enforce
      any such remedies in the course of any work-out or restructuring of the Loans
      during the pendency of one or more Events of Default; provided, that in the
      case
      of reimbursement of counsel for Lenders other than Agent, such reimbursement
      shall be limited to one counsel for all such Lenders;

     

    (e) any
      workout or restructuring of the Loans during the pendency of one or more Events
      of Default; and

     

    (f) efforts
      to (i) monitor the Loans or any of the other Obligations, (ii) evaluate, observe
      or assess any of the Credit Parties or their respective affairs, and (iii)
      verify, protect, evaluate, assess, appraise, collect, sell, liquidate or
      otherwise dispose of any of the Collateral;

     

    including,
      as to each of clauses
      (a) through (f)
      above,
      all reasonable attorneys’ and other professional and service providers’ fees
      arising from such services and other advice, assistance or other representation,
      including those in connection with any appellate proceedings, and all expenses,
      costs, charges and other fees incurred by such counsel and others in connection
      with or relating to any of the events or actions described in this Section
      11.3,
      all of
      which shall be payable, on demand, by Borrower to Agent. Without limiting the
      generality of the foregoing, such expenses, costs, charges and fees may include:
      fees, costs and expenses of accountants, environmental advisors, appraisers,
      investment bankers, management and other consultants and paralegals; court
      costs
      and expenses; photocopying and duplication expenses; court reporter fees, costs
      and expenses; long distance telephone charges; air express charges; telegram
      or
      telecopy charges; secretarial overtime charges; and expenses for travel, lodging
      and food paid or incurred in connection with the performance of such legal
      or
      other advisory services.

     

    
      
        
        

      

      
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    11.4 No
      Waiver.
      Agent’s
      or any Lender’s failure, at any time or times, to require strict performance by
      the Credit Parties of any provision of this Agreement or any other Loan Document
      shall not waive, affect or diminish any right of Agent or such Lender thereafter
      to demand strict compliance and performance herewith or therewith. Any
      suspension or waiver of an Event of Default shall not suspend, waive or affect
      any other Event of Default whether the same is prior or subsequent thereto
      and
      whether the same or of a different type. Subject to the provisions of
Section
      11.2,
      none of
      the undertakings, agreements, warranties, covenants and representations of
      any
      Credit Party contained in this Agreement or any of the other Loan Documents
      and
      no Default or Event of Default by any Credit Party shall be deemed to have
      been
      suspended or waived by Agent or any Lender, unless such waiver or suspension
      is
      by an instrument in writing signed by an officer of or other authorized employee
      of Agent and the applicable required Lenders and directed to Borrower specifying
      such suspension or waiver.

     

    11.5 Remedies.
      Agent’s
      and Lenders’ rights and remedies under this Agreement shall be cumulative and
      nonexclusive of any other rights and remedies that Agent or any Lender may
      have
      under any other agreement, including the other Loan Documents, by operation
      of
      law or otherwise. Recourse to the Collateral shall not be required.

     

    11.6 Severability.
      Wherever possible, each provision of this Agreement and the other Loan Documents
      shall be interpreted in such a manner as to be effective and valid under
      applicable law, but if any provision of this Agreement or any other Loan
      Document shall be prohibited by or invalid under applicable law, such provision
      shall be ineffective only to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provision or the remaining provisions
      of this Agreement or such other Loan Document.

     

    11.7 Conflict
      of Terms.
      Except
      as otherwise provided in this Agreement or any of the other Loan Documents
      by
      specific reference to the applicable provisions of this Agreement, if any
      provision contained in this Agreement conflicts with any provision in any of
      the
      other Loan Documents, the provision contained in this Agreement shall govern
      and
      control.

     

    11.8 Confidentiality.
      Agent
      and each Lender agree to use commercially reasonable efforts (equivalent to
      the
      efforts Agent or such Lender applies to maintain the confidentiality of its
      own
      confidential information) to maintain as confidential all confidential
      information provided to them by the Credit Parties and designated as
      confidential for a period of 2 years following receipt thereof, except that
      Agent and each Lender may disclose such information (a) to Persons employed
      or
      engaged by Agent or such Lender; (b) to any bona fide assignee or participant
      or
      potential assignee or participant that has agreed to comply with the covenant
      contained in this Section
      11.8
      (and any
      such bona fide assignee or participant or potential assignee or participant
      may
      disclose such information to Persons employed or engaged by them as described
      in
clause
      (a) above); (c)
      as
      required or requested by any Governmental Authority or reasonably believed
      by
      Agent or such Lender to be compelled by any court decree, subpoena or legal
      or
      administrative order or process; (d) as, on the advice of Agent’s or such
      Lender’s counsel, is required by law; (e) in connection with the exercise of any
      right or remedy under the Loan Documents or in connection with any Litigation
      to
      which Agent or such Lender is a party; (f) that ceases to be confidential
      through no fault of Agent or any Lender; (g) to a Person that is an investor
      or
      prospective investor in a Securitization that agrees that its access to
      information regarding the Credit Parties and the Loans is solely for purposes
      of
      evaluating an investment in such Securitization and who agrees to treat such
      information as confidential; (h) to a Person that is a trustee, collateral
      manager, servicer, backup servicer, noteholder or secured party in a
      Securitization in connection with the administration, servicing and reporting
      on
      the assets serving as collateral for a Securitization; and (i) to a nationally
      recognized rating agency that requires access to information regarding the
      Credit Parties and the Loans in connection with ratings issues with respect
      to a
      Securitization.

     

    
      
        
        

      

      
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    11.9 GOVERNING
      LAW.
      EXCEPT
      AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN ALL RESPECTS,
      INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THE LOAN
      DOCUMENTS AND THE OBLIGATIONS SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED
      IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO
      CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED
      STATES OF AMERICA. EACH CREDIT PARTY HEREBY CONSENTS AND AGREES THAT THE STATE
      OR FEDERAL COURTS LOCATED IN NEW YORK COUNTY, CITY OF NEW YORK, NEW YORK SHALL
      HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
      THE CREDIT PARTIES, AGENT AND LENDERS PERTAINING TO THIS AGREEMENT OR ANY OF
      THE
      OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS
      AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED,
      THAT
      AGENT, LENDERS AND THE CREDIT PARTIES ACKNOWLEDGE THAT ANY APPEALS FROM THOSE
      COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF NEW YORK COUNTY AND;
      PROVIDED,
      FURTHER
      THAT
      NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE AGENT FROM
      BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE
      ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE
      A
      JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT. EACH CREDIT PARTY EXPRESSLY
      SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT
      COMMENCED IN ANY SUCH COURT, AND EACH CREDIT PARTY HEREBY WAIVES ANY OBJECTION
      THAT SUCH CREDIT PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION,
      IMPROPER VENUE OR FORUM NON CONVENIENS
      AND
      HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
      APPROPRIATE BY SUCH COURT. EACH CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE
      OF
      THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT
      AND
      AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE
      BY
      REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH CREDIT PARTY AT THE ADDRESS
      SET
      FORTH IN ANNEX
      I
      OF THIS
      AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER
      OF
      SUCH CREDIT PARTY’S ACTUAL RECEIPT THEREOF OR 3 DAYS AFTER DEPOSIT IN THE UNITED
      STATES MAILS, PROPER POSTAGE PREPAID.

     

    
      
        
        

      

      
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    11.10 Notices.
      

     

    (a) Addresses.
      All
      notices, demands, requests, directions and other communications required or
      expressly authorized to be made by this Agreement shall, whether or not
      specified to be in writing but unless otherwise expressly specified to be given
      by any other means, be given in writing and (i) addressed to (A) the party
      to be
      notified and sent to the address or facsimile number indicated in Annex
      I,
      or (B)
      otherwise to the party to be notified at its address specified on the signature
      page of any applicable Assignment Agreement, (ii) posted to Intralinks(R) (to
      the extent such system is available and set up by or at the direction of the
      Agent prior to posting) in an appropriate location by uploading such notice,
      demand, request, direction or other communication to www.intralinks.com, faxing
      it to 866-545-6600 with an appropriate bar-coded fax coversheet or using such
      other means of posting to Intralinks(R) as may be available and reasonably
      acceptable to the Agent prior to such posting, (iii) posted to any other
      E-System set up by or at the direction of Agent in an appropriate location
      or
      (iv) addressed to such other address as shall be notified in writing (A) in
      the
      case of Borrower and Agent Lender, to the other parties hereto and (B) in the
      case of all other parties, to Borrower and Agent. Transmission by electronic
      mail (including E-Fax, even if transmitted to the fax numbers set forth in
      clause (i) above) shall not be sufficient or effective to transmit any such
      notice under this clause (a) unless such transmission is an available means
      to
      post to any E-System. 

     

    (b) Effectiveness.
      All
      communications described in clause (a) above and all other notices, demands,
      requests and other communications made in connection with this Agreement shall
      be effective and be deemed to have been received (i) if delivered by hand,
      upon
      personal delivery, (ii) if delivered by overnight courier service, one Business
      Day after delivery to such courier service, (iii) if delivered by mail, when
      deposited in the mails, (iv) if delivered by facsimile (other than to post
      to an
      E-System pursuant to clause (a)(ii) or (a)(iii) above), upon sender’s receipt of
      confirmation of proper transmission, and (v) if delivered by posting to any
      E-System, on the later of the date of such posting in an appropriate location
      and the date access to such posting is given to the recipient thereof in
      accordance with the standard procedures applicable to such E-System. Failure
      or
      delay in delivering copies of any notice, demand, request, consent, approval,
      declaration or other communication to any Person (other than Borrower or Agent)
      designated in Annex
      I
      to
      receive copies shall in no way adversely affect the effectiveness of such
      notice, demand, request, consent, approval, declaration or other communication.
      The giving of any notice required hereunder may be waived in writing by the
      party entitled to receive such notice.

     

    11.11 Section
      Titles.
      The
      Section titles and Table of Contents contained in this Agreement are and shall
      be without substantive meaning or content of any kind whatsoever and are not
      a
      part of the agreement between the parties hereto.

     

    11.12 Counterparts.
      This
      Agreement may be executed in any number of separate counterparts, each of which
      shall collectively and separately constitute one agreement.

     

    11.13 WAIVER
      OF JURY TRIAL.
      BECAUSE
      DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST
      QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE
      PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION
      RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING
      SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
      OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT
      TO
      TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
      WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG AGENT, LENDERS AND ANY
      CREDIT PARTY ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE
      RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR ANY
      OF
      THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED THERETO.

     

    
      
        
        

      

      
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    11.14 Press
      Releases and Related Matters.
      Each US
      Credit Party executing this Agreement agrees that neither it nor its Affiliates
      will in the future issue any press releases or other public disclosure using
      the
      name of GE Capital or its affiliates or referring to this Agreement, the other
      Loan Documents or the Related Transactions Documents without at least 2 Business
      Days’ prior notice to GE Capital and without the prior written consent of GE
      Capital unless (and only to the extent that) such Credit Party or Affiliate
      is
      required to do so under law and then, in any event, such Credit Party or
      Affiliate will consult with GE Capital before issuing such press release or
      other public disclosure (other than disclosure of the fact that GE Capital
      is
      the Agent under this Agreement and the filing of Loan Documents with the
      Securities and Exchange Commission, in each case, to the extent required under
      applicable law). Each Credit Party consents to the publication by Agent or
      any
      Lender of a tombstone or similar advertising material relating to the financing
      transactions contemplated by this Agreement. Agent or such Lender shall provide
      a draft of any such tombstone or similar advertising material to each Credit
      Party for review and comment prior to the publication thereof. Agent reserves
      the right to provide to industry trade organizations information necessary
      and
      customary for inclusion in league table measurements.

     

    11.15 Reinstatement.
      This
      Agreement shall remain in full force and effect and continue to be effective
      should any petition be filed by or against Borrower for liquidation or
      reorganization, should Borrower become insolvent or make an assignment for
      the
      benefit of any creditor or creditors or should a receiver or trustee be
      appointed for all or any significant part of Borrower’s assets, and shall
      continue to be effective or to be reinstated, as the case may be, if at any
      time
      payment and performance of the Obligations, or any part thereof, is, pursuant
      to
      applicable law, rescinded or reduced in amount, or must otherwise be restored
      or
      returned by any obligee of the Obligations, whether as a “voidable preference,”
“fraudulent conveyance,” or otherwise, all as though such payment or performance
      had not been made. In the event that any payment, or any part thereof, is
      rescinded, reduced, restored or returned, the Obligations shall be reinstated
      and deemed reduced only by such amount paid and not so rescinded, reduced,
      restored or returned.

     

    11.16 Advice
      of Counsel.
      Each of
      the parties represents to each other party hereto that it has discussed this
      Agreement and, specifically, the provisions of Sections
      11.9 and 11.13,
      with
      its counsel.

     

    11.17 No
      Strict Construction.
      The
      parties hereto have participated jointly in the negotiation and drafting of
      this
      Agreement. In the event an ambiguity or question of intent or interpretation
      arises, this Agreement shall be construed as if drafted jointly by the parties
      hereto and no presumption or burden of proof shall arise favoring or disfavoring
      any party by virtue of the authorship of any provisions of this
      Agreement.

     

    
      
        
        

      

      
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    11.18 Judgment
      Currency.

     

    (a) If
      for
      the purposes of obtaining or enforcing judgment in any court in any jurisdiction
      it is necessary to convert a sum due hereunder or under the Notes or under
      any
      other Loan Document in any currency (the “Original
      Currency”)
      into
      another currency (the “Other
      Currency”)
      the
      parties hereto agree, to the fullest extent that they may effectively do so,
      that the rate of exchange used shall be that at which in accordance with normal
      banking procedures Agent could purchase the Original Currency with the Other
      Currency at 11:00 A.M., New York city time, on the second Business Day preceding
      that on which final judgment is given.

     

    (b) The
      obligation of Credit Party in respect of any sum due in the Original Currency
      from it to any Lender or Agent hereunder or under the Notes held by such Lender
      shall, notwithstanding any judgment in any Other Currency, be discharged only
      to
      the extent that on the Business Day following receipt by such Lender or Agent
      (as the case may be) of any sum adjudged to be so due in such Other Currency
      such Lender or Agent (as the case may be) may in accordance with normal banking
      procedures purchase the Original Currency with such Other Currency; if the
      amount of the Original Currency so purchased is less than the sum originally
      due
      to such Lender or Agent (as the case may be) in the Original Currency, such
      Credit Party agrees, as a separate obligation and notwithstanding any such
      judgment, to indemnify such Lender or Agent (as the case may be) against such
      loss, and if the amount of the Original Currency so purchased exceeds the sum
      originally due to any Lender or Agent (as the case may be) in the Original
      Currency, such Lender or Agent (as the case may be) agrees to remit to such
      Credit Party such excess.

     

    11.19 Subordination.

     

    (a) Each
      US
      Credit Party executing this Agreement covenants and agrees that the payment
      of
      all indebtedness, principal, interest (including interest which accrues after
      the commencement of any case or proceeding in bankruptcy, or for the
      reorganization of any Credit Party), fees, charges, expenses, attorneys’ fees
      and any other sum, obligation or liability owing by any other Credit Party
      to
      such US Credit Party, including any intercompany trade payables or royalty
      or
      licensing fees (collectively, the “Intercompany
      Obligations”),
      is
      subordinated, to the extent and in the manner provided in this Section
      11.19,
      to the
      prior payment in full of all Obligations (herein, the “Senior
      Obligations”)
      and
      that the subordination is for the benefit of Agent and Lenders, and Agent may
      enforce such provisions directly.

     

    (b) Each
      US
      Credit Party executing this Agreement hereby (i) authorizes Agent to demand
      specific performance of the terms of this Section
      11.19,
      whether
      or not any other Credit Party shall have complied with any of the provisions
      hereof applicable to it, at any time when such US Credit Party shall have failed
      to comply with any provisions of this Section
      11.19
      which
      are applicable to it and (ii) irrevocably waives any defense based on the
      adequacy of a remedy at law, which might be asserted as a bar to such remedy
      of
      specific performance.

     

    
      
        
        

      

      
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    (c) Upon
      any
      distribution of assets of any US Credit Party in any dissolution, winding up,
      liquidation or reorganization (whether in bankruptcy, insolvency or receivership
      proceedings or upon an assignment for the benefit of creditors or
      otherwise):

     

    (i) Agent
      and
      Lenders shall first be entitled to receive payment in full in cash of the Senior
      Obligations before any US Credit Party is entitled to receive any payment on
      account of the Intercompany Obligations.

     

    (ii) Any
      payment or distribution of assets of any US Credit Party of any kind or
      character, whether in cash, property or securities, to which any other Credit
      Party would be entitled except for the provisions of this Section
      11.19(c),
      shall
      be paid by the liquidating trustee or agent or other Person making such payment
      or distribution directly to Agent, to the extent necessary to make payment
      in
      full of all Senior Obligations remaining unpaid after giving effect to any
      concurrent payment or distribution or provisions therefor to Agent and
      Lenders.

     

    (iii) In
      the
      event that notwithstanding the foregoing provisions of this Section
      11.19(c),
      any
      payment or distribution of assets of any US Credit Party of any kind or
      character, whether in cash, property or securities, shall be received by any
      other Credit Party on account of the Intercompany Obligations before all Senior
      Obligations are paid in full, such payment or distribution shall be received
      and
      held in trust for and shall be paid over to Agent for application to the payment
      of the Senior Obligations until all of the Senior Obligations shall have been
      paid in full, after giving effect to any concurrent payment or distribution
      or
      provision therefor to Agent and Lenders.

     

    (d) No
      right
      of Agent and Lenders or any other present or future holders of any Senior
      Obligations to enforce the subordination provisions herein shall at any time
      in
      any way be prejudiced or impaired by any act or failure to act on the part
      of
      any Credit Party or by any act or failure to act, in good faith, by any such
      holder, or by any noncompliance by any Credit Party with the terms hereof,
      regardless of any knowledge thereof which any such holder may have or be
      otherwise charged with.

     

    11.20 Patriot
      Act Notice.
      Each
      Lender and the Agent (for itself and not on behalf of any Lender) hereby
      notifies the Credit Parties that pursuant to the requirements of the Patriot
      Act, such Lender and the Agent may be required to obtain, verify and record
      information that identifies the Credit Parties, which information includes
      the
      name and address of the Credit Parties and other information that will allow
      such Lender and the Agent, as the case may be, to identify the Credit Parties
      in
      accordance with the Patriot Act.

     

    
      
        
        

      

      
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    12. AFFIRMATION
      OF OBLIGATIONS.
      Upon the
      effectiveness of this Agreement pursuant to Section
      2.1
      hereof,
      from and after the Closing Date: (a) the terms and conditions of the Existing
      Credit Agreement shall be amended as set forth herein and, as so amended, shall
      be restated in their entirety, but only with respect to the rights, duties
      and
      obligations among Credit Parties, the Lenders and the Agent accruing from and
      after the Closing Date; (b) this Agreement shall not in any way release or
      impair the rights, duties, Obligations or Liens created pursuant to the Existing
      Credit Agreement or any other Loan Document (as defined therein) or affect
      the
      relative priorities thereof, in each case to the extent in force and effect
      thereunder as of the Closing Date and except as modified hereby or by documents,
      instruments and agreements executed and delivered in connection herewith, and
      all of such rights, duties, Obligations and Liens are assumed, ratified and
      affirmed by each of the Credit Parties; (c) all indemnification obligations
      of
      the Credit Parties under the Existing Credit Agreement and any other Loan
      Documents (as defined therein) shall survive the execution and delivery of
      this
      Agreement and shall continue in full force and effect for the benefit of the
      Lenders, the Agent, and any other Person indemnified under the Existing Credit
      Agreement or any other Loan Document (as defined therein) at any time prior
      to
      the Closing Date; (d) the Obligations incurred under the Existing Credit
      Agreement shall, to the extent outstanding on the Closing Date, continue
      outstanding under this Agreement and shall not be deemed to be paid, released,
      discharged or otherwise satisfied by the execution of this Agreement, and this
      Agreement shall not constitute a refinancing, substitution or novation of such
      Obligations or any of the other rights, duties and obligations of the parties
      hereunder, and the terms “Obligations”, “Guaranteed Obligations” and “Secured
      Obligations” as such terms are used in the Loan Documents shall include the
      Obligations as increased, amended and restated under this Agreement; (e) the
      execution, delivery and effectiveness of this Agreement shall not operate as
      a
      waiver of any right, power or remedy of the Lenders or the Agent (as defined
      therein) under the Existing Credit Agreement, nor constitute a waiver of any
      covenant, agreement or obligation under the Existing Credit Agreement, except
      to
      the extent that any such covenant, agreement or obligation is no longer set
      forth herein or is modified hereby; (f) any and all references to the Existing
      Credit Agreement in any Collateral Document or other Loan Document shall,
      without further action of the parties, be deemed a reference to the Existing
      Credit Agreement, as amended and restated by this Agreement, and as this
      Agreement shall be further amended, restated, supplemented or otherwise modified
      from time to time, and any and all references to the Collateral Documents or
      Loan Documents in any such Collateral Documents or any other Loan Documents
      shall be deemed a reference to the Collateral Documents or Loan Documents under
      the Existing Credit Agreement, as amended and restated by this Agreement, and
      as
      this Agreement shall be further amended, restated, supplemented or otherwise
      modified from time to time; and (g) the Liens granted pursuant to the Collateral
      Documents to which each of the Credit Parties is a party shall continue without
      any diminution thereof and shall remain in full force and effect on and after
      the Closing Date.

     

    [SIGNATURE
      PAGES TO FOLLOW]

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, this Agreement has been duly executed as of the date first
      written above.

     

    BORROWER

     

    MEASUREMENT
      SPECIALTIES, INC.

     

    By:
      ____________________________      

    Name:

    Title:

     

    
      
        
        

      

      
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    GENERAL
      ELECTRIC CAPITAL

    CORPORATION,
      as
      Agent
      and as Lender

     

    By:
      _____________________________       

    Duly
      Authorized Signatory

     

     

    
      
        
        

      

      
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    WACHOVIA
      BANK, NATIONAL ASSOCIATION,
as
      Syndication Agent and as Lender 

     

     

    By:
      _____________________________      

    Duly
      Authorized Signatory

     

     

     

    CoLTS
      2005-1 LTD., as
      Lender

     

    By:
      Wachovia Bank, National Association, as Servicer

     

     

    By:
      _____________________________      

    Duly
      Authorized Signatory]

     

    
      
        
        

      

      
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    JPMORGAN
      CHASE BANK, N.A.,
as
      Documentation Agent and as Lender

     

    By:
      _____________________________      

    Duly
      Authorized Signatory

     

    
      
        
        

      

      
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    The
      following Persons are signatories to this Agreement in their capacity as Credit
      Parties and not as Borrower.

     

    IC
      SENSORS INC.

     

    By:
      _______________________________  

    Name:
      _____________________________

    Title:

     

    ELEKON
      INDUSTRIES USA, INC.

     

    By: _______________________________

    Name:
      _____________________________

    Title:

     

    ENTRAN
      DEVICES LLC

    By:
      Measurement Specialties, Inc.

    As
      sole
      Member and sole Manager

     

    By: _______________________________

    Name:
      _____________________________

    Title:

     

    MEASUREMENT
      SPECIALTIES FOREIGN HOLDINGS CORPORATION

     

    By: _______________________________

    Name:
      _____________________________

    Title:

     

    
      
        
        

      

      
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    MREHTATEB,
      LLC

    

    By:
      Measurement Specialties Foreign Holdings Corporation

    As
      sole
      Member 

     

    By: _______________________________

    Name:
      _____________________________

    Title:

     

    YSIS
      INCORPORATED

     

    By: _______________________________

    Name:
      _____________________________

    Title:

     

    
      
        
        

      

      
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    ANNEX
      A (Recitals)

     

    to

     

    CREDIT
      AGREEMENT

     

    DEFINITIONS

     

    Capitalized
      terms used in the Loan Documents shall have (unless otherwise provided elsewhere
      in the Loan Documents) the following respective meanings and all references
      to
      Sections, Exhibits, Schedules or Annexes in the following definitions shall
      refer to Sections, Exhibits, Schedules or Annexes of or to the
      Agreement:

     

    “Account
      Debtor”
means
      any Person who may become obligated to any Credit Party under, with respect
      to,
      or on account of, an Account, Chattel Paper or General Intangibles (including
      a
      payment tangible).

     

    “Accounting
      Changes”
has
      the
      meaning ascribed thereto in Annex G.

     

    “Accounts”
means
      all “accounts,” as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, including (a) all accounts receivable, other
      receivables, book debts and other forms of obligations (other than forms of
      obligations evidenced by Chattel Paper or Instruments), (including any such
      obligations that may be characterized as an account or contract right under
      the
      Code), (b) all of each Credit Party’s rights in, to and under all purchase
      orders or receipts for goods or services, (c) all of each Credit Party’s rights
      to any goods represented by any of the foregoing (including unpaid sellers’
rights of rescission, replevin, reclamation and stoppage in transit and rights
      to returned, reclaimed or repossessed goods), (d) all rights to payment due
      to
      any Credit Party for property sold, leased, licensed, assigned or otherwise
      disposed of, for a policy of insurance issued or to be issued, for a secondary
      obligation incurred or to be incurred, for energy provided or to be provided,
      for the use or hire of a vessel under a charter or other contract, arising
      out
      of the use of a credit card or charge card, or for services rendered or to
      be
      rendered by such Credit Party or in connection with any other transaction
      (whether or not yet earned by performance on the part of such Credit Party),
      (e)
      all healthcare insurance receivables, and (f) all collateral security of any
      kind, now or hereafter in existence, given by any Account Debtor or other Person
      with respect to any of the foregoing.

     

    “Acquisitions”
means
      the BetaTHERM Acquisition and the YSIS Acquisition.

     

    “Activation
      Event” and “Activation Notice”
have
      the meanings ascribed thereto in Annex
      C

     

    “Advance”
means
      any Revolving Credit Advance.

     

    “Affiliate”
means,
      with respect to any Person, (a) each Person that, directly or indirectly, owns
      or controls, whether beneficially, or as a trustee, guardian or other fiduciary,
      5% or more of the Stock having ordinary voting power in the election of
      directors of such Person, (b) each Person that controls, is controlled by or
      is
      under common control with such Person, (c) each of such Person’s officers,
      directors, joint venturers and partners and (d) in the case of Borrower, the
      immediate family members, spouses and lineal descendants of individuals who
      are
      Affiliates of Borrower. For the purposes of this definition, “control”
of
      a
      Person shall mean the possession, directly or indirectly, of the power to direct
      or cause the direction of its management or policies, whether through the
      ownership of voting securities, by contract or otherwise; provided,
      however,
      that
      the term “Affiliate”
shall
      specifically exclude Agent and each Lender.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    “Agent”
means
      GE Capital in its capacity as Agent for Lenders or its successor appointed
      pursuant to Section
      9.7.

     

    “Agreement”
means
      the Credit Agreement by and among Borrower, the other Credit Parties party
      thereto, GE Capital, as Agent and Lender and the other Lenders from time to
      time
      party thereto, as the same may be amended, supplemented, restated or otherwise
      modified from time to time.

     

    “Appendices”
has
      the
      meaning ascribed to it in the recitals to the Agreement.

     

    “Applicable
      L/C Margin”
means
      the per annum fee, from time to time in effect, payable with respect to
      outstanding Letter of Credit Obligations as determined by reference to
Section
      1.5(a).

     

    “Applicable
      Margins”
means
      collectively the Applicable L/C Margin, the Applicable Revolver Index Margin,
      the Applicable Term Loan Index Margin, the Applicable Revolver LIBOR Margin
      and
      the Applicable Term Loan LIBOR Margin.

     

    “Applicable
      Revolver Index Margin”
means
      the per annum interest rate margin from time to time in effect and payable
      in
      addition to the Index Rate applicable to the Revolving Loan, as determined
      by
      reference to Section
      1.5(a).

     

    “Applicable
      Revolver LIBOR Margin”
means
      the per annum interest rate from time to time in effect and payable in addition
      to the LIBOR Rate applicable to the Revolving Loan, as determined by reference
      to Section
      1.5(a).

     

    “Applicable
      Term Loan Index Margin”
means
      the per annum interest rate from time to time in effect and payable in addition
      to the Index Rate applicable to the Term Loan, as determined by reference to
      Section
      1.5(a).

     

    “Applicable
      Term Loan LIBOR Margin”
means
      the per annum interest rate from time to time in effect and payable in addition
      to the LIBOR Rate applicable to the Term Loan, as determined by reference to
      Section
      1.5(a).

     

    “Assignment
      Agreement”
has
      the
      meaning ascribed to it in Section
      9.1(a).

     

    “Bankruptcy
      Code”
means
      the provisions of Title 11 of the United States Code, 11 U.S.C.
      Sec.Sec. 101 et seq.

     

    “BetaTHERM
      Group”
means
      BetaTHERM Group Ltd., a company organized under the laws of
      Ireland.

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    “BetaTHERM
      Acquisition”
means
      the acquisition of all of all of the Stock of BetaTHERM Group pursuant to the
      BetaTHERM Acquisition Agreement.

     

    “BetaTHERM
      Acquisition Agreement”
means
      the Agreement for the purchase of the entire issued share capital of BetaTHERM
      Group Ltd. dated April 3, 2006 among the BetaTHERM Sellers and Borrower, as
      buyer. 

     

    “BetaTHERM
      Acquisition Documents”
means
      the BetaTHERM Acquisition Agreement and all other agreements or instruments
      executed in connection with the BetaTHERM Acquisition.

     

    “BetaTHERM
      Reorganization”
means
      the transactions or series of transaction in form and substance satisfactory
      to
      Agent pursuant to which (i) Intermediate Holdings shall purchase the Stock
      of
      BetaTHERM Corporation, a Massachusetts corporation, from LaJoy by issuing an
      intercompany note (the “Intermediate
      Holdings Note”)
      to
      LaJoy, (ii) LaJoy will distribute the Intermediate Holdings Note to BetaTHERM
      Trading Ltd., in satisfaction of any intercompany Indebtedness payable to
      BetaTHERM Trading Ltd., BetaTHERM Trading Ltd. will distribute the Intermediate
      Holdings Note to BetaTHERM Holding Ltd., in satisfaction of any intercompany
      Indebtedness payable to BetaTHERM Holding Ltd., BetaTHERM Holding Ltd. will
      distribute the Intermediate Holdings Note to BetaTHERM Group, in satisfaction
      of
      any intercompany Indebtedness payable to BetaTHERM Group, and BetaTHERM Trading
      Ltd. will distribute the Intermediate Holdings Note to Intermediate Holdings,
      whereupon Intermediate Holdings will cancel the Intermediate Holdings Note,
      (iii) Beta-Therm Corporation, a Massachusetts corporation, shall merge with
      and
      into Mrehtateb, LLC, a Massachussets limited liability company (“Mrehtateb”),
      with
      Mrehtateb as the surviving entity, (iv) Intermediate Holdings shall transfer
      all
      of the Stock of BetaTHERM Group to Kenabell Holding and Mrehtateb shall transfer
      all of the Stock of BetaTHERM to Kenabell Holding, (v) Kenabell Holding shall
      transfer all of the Stock of BetaTHERM Group and BetaTHERM to Acalon Holdings
      Ltd., (vi) Intermediate Holdings shall distribute all of the Stock of Mrehtateb
      to Borrower and Borrower shall immediately pledge the Stock of BetaTHERM to
      Agent, for the benefit of itself and Lenders, as Collateral.

     

    “BetaTHERM
      Sellers”
means
      those Persons listed as Vendors in Column 1 of the Table in the First
      Schedule
      of the
      BetaTHERM Acquisition Agreement.

     

    “Blocked
      Accounts”
has
      the
      meaning ascribed to it in Annex
      C.

     

    “Blocked
      Account Agreement”
has
      the
      meaning ascribed to it in Annex
      C.

     

    “Borrower”
has
      the
      meaning ascribed thereto in the preamble to the Agreement.

     

    “Borrower
      Pledge Agreement”
means
      the Amended and Restated Pledge Agreement, dated as of the date hereof, executed
      by Borrower and its Domestic Subsidiaries in favor of Agent, on behalf of itself
      and Lenders, pledging all Stock of its Subsidiaries, if any, and all
      Intercompany Notes owing to or held by it.

     

    “Borrowing
      Availability”
means
      as of any date of determination the Maximum Amount, less
      the sum
      of the aggregate Revolving Loan.

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

     

    “Business
      Day”
means
      any day that is not a Saturday, a Sunday or a day on which banks are required
      or
      permitted to be closed in the State New York and in reference to LIBOR Loans
      shall mean any such day that is also a LIBOR Business Day.

     

    “Capital
      Expenditures”
means,
      with respect to any Person, all expenditures (by the expenditure of cash or
      the
      incurrence of Indebtedness) by such Person during any measuring period for
      any
      fixed assets or improvements or for replacements, substitutions or additions
      thereto, that have a useful life of more than one year and that are required
      to
      be capitalized under GAAP.

     

    “Capital
      Lease”
means,
      with respect to any Person, any lease of any property (whether real, personal
      or
      mixed) by such Person as lessee that, in accordance with GAAP, would be required
      to be classified and accounted for as a capital lease on a balance sheet of
      such
      Person.

     

    “Capital
      Lease Obligation”
means,
      with respect to any Capital Lease of any Person, the amount of the obligation
      of
      the lessee thereunder that, in accordance with GAAP, would appear on a balance
      sheet of such lessee in respect of such Capital Lease.

     

    “Cash
      Collateral Account”
has
      the
      meaning ascribed to it Annex
      B.

     

    “Cash
      Equivalents”
has
      the
      meaning ascribed to it in Annex
      B.

     

    “Cash
      Management Systems”
has
      the
      meaning ascribed to it in Section
      1.8.

     

    “Change
      of Control”
means
      any of the following: (a) any person or group of persons (within the meaning
      of
      the Securities Exchange Act of 1934) shall have acquired beneficial ownership
      (within the meaning of Rule 13d-3 promulgated by the Securities and Exchange
      Commission under the Securities Exchange Act of 1934) of 30% or more of the
      issued and outstanding shares of capital Stock of Borrower having the right
      to
      vote for the election of directors of Borrower under ordinary circumstances;
      (b)
      during any period of twelve consecutive calendar months, individuals who at
      the
      beginning of such period constituted the board of directors of Borrower
      (together with any new directors whose election by the board of directors of
      Borrower or whose nomination for election by the Stockholders of Borrower was
      approved by a vote of at least two-thirds of the directors then still in office
      who either were directors at the beginning of such period or whose election
      or
      nomination for election was previously so approved) cease for any reason other
      than death or disability to constitute a majority of the directors then in
      office; (c) Borrower ceases to own and control all of the economic and
      voting rights associated with all of the outstanding capital Stock of any of
      its
      Subsidiaries (except as otherwise permitted by Section
      6.1);
      or (d)
      at any time prior to the 18-month anniversary of the Closing Date, Frank Guidone
      shall no longer be Borrower’s Chief Executive Officer having substantially the
      same duties and responsibilities as on the Closing Date, other than by reason
      of
      death, disability or termination by Borrower for cause.

     

    “Charges”
means
      all federal, state, county, city, municipal, local, foreign or other
      governmental taxes (including taxes owed to the PBGC at the time due and
      payable), levies, assessments, charges, liens, claims or encumbrances upon
      or
      relating to (a) the Collateral, (b) the Obligations, (c) the employees, payroll,
      income or gross receipts of any Credit Party, (d) any Credit Party’s
      ownership or use of any properties or other assets, or (e) any other aspect
      of
      any Credit Party’s business.

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

     

    “Chattel
      Paper”
means
      any “chattel paper,” as such term is defined in the Code, including electronic
      chattel paper, now owned or hereafter acquired by any Credit Party, wherever
      located.

     

    “Class
      Action Litigation”
means
      In re: Measurement Specialties, Inc. Securities Litigation, 02 Civ. No. 1071
      (D.N.J.).

     

    “Closing
      Date”
means
      April 3, 2006.

     

    “Closing
      Date Earnouts”
means
      (i) the earnout amounts payable by Borrower under Section 2.2(c) of the
      Agreement of Purchase and Sale dated as of June 24, 2004 between Borrower and
      Thomas Dietiker and Wilma Dietiker relating to the sale of the stock of Elekon;
      (ii) the deferred purchase price and other amounts payable under by Borrower
      under Section 2.2(b) and (c) of the Stock Purchase Agreement dated as of July
      16, 2004 among Borrower, the principal shareholders of Entran Devices and Entran
      SA relating to the sale of the stock of Entran Devices and Entran SA; and (iii)
      the deferred Purchase price payable by Borrower under Section 2.2(b) of the
      Asset Purchase Agreement dated as of July 16, 2004 between Borrower and Encoder
      Devices, LLC relating to the sale of the assets of Encoder Devices, LLC.

     

    “Closing
      Checklist”
means
      the schedule, including all appendices, exhibits or schedules thereto, listing
      certain documents and information to be delivered in connection with the
      Agreement, the other Loan Documents and the transactions contemplated
      thereunder, substantially in the form attached hereto as Annex
      D.

     

    “Code”
means
      the Uniform Commercial Code as the same may, from time to time, be enacted
      and
      in effect in the State of New York; provided,
      that to
      the extent that the Code is used to define any term herein or in any Loan
      Document and such term is defined differently in different Articles or Divisions
      of the Code, the definition of such term contained in Article or Division 9
      shall govern; provided further,
      that in
      the event that, by reason of mandatory provisions of law, any or all of the
      attachment, perfection or priority of, or remedies with respect to, Agent’s or
      any Lender’s Lien on any Collateral is governed by the Uniform Commercial Code
      as enacted and in effect in a jurisdiction other than the State of New York,
      the
      term “Code”
shall
      mean the Uniform Commercial Code as enacted and in effect in such other
      jurisdiction solely for purposes of the provisions thereof relating to such
      attachment, perfection, priority or remedies and for purposes of definitions
      related to such provisions.

     

    “Collateral”
means
      the property covered by the Security Agreement, and the other Collateral
      Documents and any other property, real or personal, tangible or intangible,
      now
      existing or hereafter acquired, that may at any time be or become subject to
      a
      security interest or Lien in favor of Agent, on behalf of itself and Lenders,
      to
      secure the Obligations.

     

    “Collateral
      Documents”
means
      the Security Agreement, the Pledge Agreements, the Guaranties, the Intellectual
      Property Security Agreement and all similar agreements entered into in favor
      of
      the Agent or any person acting on behalf of the Agent guaranteeing payment
      of,
      or granting a Lien upon property as security for payment of, the
      Obligations.

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

     

    “Collection
      Account”
means
      that certain account of Agent, account number 502-328-54 in the name of Agent
      at
      Deutsche Bank Trust Company Americas in New York, New York ABA No. 021 001
      033,
      or such other account as may be specified in writing by Agent as the “Collection
      Account.”

     

    “Commitment
      Termination Date”
means
      the earliest of (a) April 3, 2011, (b) the date of termination of Lenders’
obligations to make Advances and to incur Letter of Credit Obligations or permit
      existing Loans to remain outstanding pursuant to Section
      8.2(b),
      and (c)
      the date of indefeasible prepayment in full by Borrower of the Loans and the
      cancellation and return (or stand-by guarantee) of all Letters of Credit or
      the
      cash collateralization of all Letter of Credit Obligations pursuant to
Annex
      B,
      and the
      permanent reduction of the Commitments to zero dollars ($0).

     

    “Commitments”
means
      (a) as to any Lender, the aggregate of such Lender’s Revolving Loan Commitment
      and Term Loan Commitment as set forth on Annex
      J
      to the
      Agreement or in the most recent Assignment Agreement executed by such Lender
      and
      (b) as to all Lenders, the aggregate of all Lenders’ Revolving Loan Commitments
      (and Term Loan Commitments, which aggregate commitment shall be Seventy Five
      Million ($75,000,000) on the Closing Date, as to each of clauses
      (a) and (b),
      as such
      Commitments may be reduced, amortized or adjusted from time to time in
      accordance with the Agreement.

     

    “Compliance
      Certificate”
has
      the
      meaning ascribed to it in Annex
      E.

     

    “Concentration
      Account”
has
      the
      meaning ascribed to it in Annex
      C.

     

    “Contracts”
means
      all “contracts,” as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, in any event, including all contracts,
      undertakings, or agreements (other than rights evidenced by Chattel Paper,
      Documents or Instruments) in or under which any Credit Party may now or
      hereafter have any right, title or interest, including any agreement relating
      to
      the terms of payment or the terms of performance of any Account.

     

    “Control
      Letter”
means
      a
      letter agreement between Agent and (i) the issuer of uncertificated securities
      with respect to uncertificated securities in the name of any Credit Party,
      (ii)
      a securities intermediary with respect to securities, whether certificated
      or
      uncertificated, securities entitlements and other financial assets held in
      a
      securities account in the name of any Credit Party, (iii) a futures commission
      merchant or clearing house, as applicable, with respect to commodity accounts
      and commodity contracts held by any Credit Party, whereby, among other things,
      the issuer, securities intermediary or futures commission merchant disclaims
      any
      security interest in the applicable financial assets, acknowledges the Lien
      of
      Agent, on behalf of itself and Lenders, on such financial assets, and agrees
      to
      follow the instructions or entitlement orders of Agent without further consent
      by the affected Credit Party.

     

    “Copyright
      License”
means
      any and all rights now owned or hereafter acquired by any Credit Party under
      any
      written agreement granting any right to use any Copyright or Copyright
      registration.

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

     

    “Copyrights”
means
      all of the following now owned or hereafter adopted or acquired by any Credit
      Party: (a) all copyrights and General Intangibles of like nature (whether
      registered or unregistered), all registrations and recordings thereof, and
      all
      applications in connection therewith, including all registrations, recordings
      and applications in the United States Copyright Office or in any similar office
      or agency of the United States, any state or territory thereof, or any other
      country or any political subdivision thereof, and (b) all reissues, extensions
      or renewals thereof.

     

    “Credit
      Parties”
means
      Borrower and each of its Subsidiaries.

     

    “Default”
means
      any event that, with the passage of time or notice or both, would, unless cured
      or waived, become an Event of Default.

     

    “Default
      Rate”
has
      the
      meaning ascribed to it in Section
      1.5(d).

     

    “Deposit
      Accounts”
means
      all “deposit accounts” as such term is defined in the Code, now or hereafter
      held in the name of any Credit Party.

     

    “Disbursement
      Accounts”
has
      the
      meaning ascribed to it in Annex
      C.

     

    “Disclosure
      Schedules”
means
      the Schedules prepared by Borrower and denominated as Disclosure
      Schedules (1.4) through (6.7)
      in the
      Index to the Agreement.

     

    “Documents”
means
      any “documents,” as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, wherever located.

     

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

     

    “Dollar
      Equivalent Amount”
means
      with respect to any currency (other than Dollars) as of any date of
      determination, the equivalent amount of such currency expressed in Dollars
      as
      determined by Agent on such date on the basis of the spot rate for the purchase
      of such currency with Dollars as quoted to the Agent’s foreign
      exchange office
      (or the
      foreign exchange office of a bank designated by the Agent) on the date two
      Business Days prior to such date of determination.

     

    “Domestic
      Subsidiaries”
means
      all Subsidiaries incorporated or organized under the laws of the United States
      of America, any state thereof or the District of Columbia.

     

    “Earnouts”
means
      the Closing Date Earn-Outs, and any other “earnouts”, deferred purchase price or
      similar obligations incurred in connection with any acquisition. For all
      purposes of this Agreement, on any date, the amount of the Closing Date
      Earn-Outs, and any other Earnout Payments shall be the amount reasonably
      expected at the time of determination to be paid or payable in the future,
      as
      reasonably determined by Agent based upon Borrower’s most recent projections of
      financial performance delivered to Agent.

     

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

     

    “EBITDA”
means,
      with respect to any Person for any fiscal period, without duplication, an amount
      equal to (a) consolidated net income of such Person for such period, determined
      in accordance with GAAP, minus
      (b) the
      sum of (i) income tax credits, (ii) interest income, (iii) gain from
      extraordinary items for such period, (iv) any aggregate net gain (but not any
      aggregate net loss) during such period arising from the sale, exchange or other
      disposition of capital assets by such Person (including any fixed assets,
      whether tangible or intangible, all inventory sold in conjunction with the
      disposition of fixed assets and all securities), and (v) any other non-cash
      gains that have been added in determining consolidated net income, in each
      case
      to the extent included in the calculation of consolidated net income of such
      Person for such period in accordance with GAAP, but without duplication,
plus
      (c) the
      sum of (i) any provision for income taxes, (ii) Interest Expense, (iii) loss
      from extraordinary items for such period, (iv) the amount of non-cash charges
      (including depreciation and amortization and non-cash Stock compensation) for
      such period, (v) amortized debt discount for such period, and (vi) the amount
      of
      any deduction to consolidated net income as the result of any grant to any
      members of the management of such Person of any Stock, in each case to the
      extent included in the calculation of consolidated net income of such Person
      for
      such period in accordance with GAAP, but without duplication. For purposes
      of
      this definition, in determining consolidated net income of a Person there shall
      be included the income (or deficit) of any other Person (including any Target
      acquired pursuant to Permitted Acquisition) accrued prior to the date it became
      a Subsidiary of, or was merged or consolidated into, or acquired by purchase
      of
      assets by, such Person or any of such Person’s Subsidiaries, as determined to
      the reasonable satisfaction of Agent; provided
      that (x)
      the portion of EBITDA
      attributable to the Acquisitions shall be as set forth on Annex
      F
      for
      periods prior to the closing date of the applicable acquisition,
      and (y)
      such EBITDA amounts with respect to Targets acquired after the Closing Date
      pursuant to a Permitted Acquisition shall be determined in accordance with
      Section
      6.1(viii)(D)
      to the
      satisfaction of Agent. For purposes of this definition, the following items
      shall be excluded in determining consolidated net income of a Person: (1) the
      income (or deficit) of any other Person (other than a Subsidiary) in which
      such
      Person has an ownership interest, except to the extent any such income has
      actually been received by such Person in the form of cash dividends or
      distributions; (2) the undistributed earnings of any Subsidiary of such Person
      to the extent that the declaration or payment of dividends or similar
      distributions by such Subsidiary is not at the time permitted by the terms
      of
      any contractual obligation or requirement of law applicable to such Subsidiary;
      (3) any restoration to income of any contingency reserve, except to the extent
      that provision for such reserve was made out of income accrued during such
      period; (4) any write-up of any asset; (5) any net gain from the collection
      of
      the proceeds of life insurance policies; (6) any net gain arising from the
      acquisition of any securities, or the extinguishment, under GAAP, of any
      Indebtedness, of such Person, (7) in the case of a successor to such Person
      by
      consolidation or merger or as a transferee of its assets, any earnings of such
      successor prior to such consolidation, merger or transfer of assets, and (8)
      any
      deferred credit representing the excess of equity in any Subsidiary of such
      Person at the date of acquisition of such Subsidiary over the cost to such
      Person of the investment in such Subsidiary.

     

    “E-Fax”
means
      any system used to receive or transmit faxes electronically. 

     

    “Elekon”
means
      Elekon Industries USA, Inc., a Delaware corporation.

     

    “Elekon
      Seller Note”
means,
      collectively, (i) the Non Negotiable Promissory Note dated as of June 24, 2004
      made by Borrower in favor of Thomas Dietiker and Wilma Dietiker in the original
      principal amount of $2,400,000, (ii) the Non Negotiable Promissory Note dated
      as
      of June 24, 2004 made by Borrower in favor of Vinod Ramnani in the original
      principal amount of $400,000, and (iii) the Non Negotiable Promissory Note
      dated
      as of June 24, 2004 made by Borrower in favor of Jay Patel in the original
      principal amount of $200,000.

     

    
      
        
        

      

      
        A-8

        
          

        

      

      
        
        

      

    

     

    “Entran
      Devices”
means
      Entran Devices, LLC, a Delaware limited liability company.

     

    “Environmental
      Laws”
means
      all applicable federal, state, local and foreign laws, statutes, ordinances,
      codes, rules, standards and regulations, now or hereafter in effect, and any
      applicable judicial or administrative interpretation thereof, including any
      applicable judicial or administrative order, consent decree, order or judgment,
      imposing liability or standards of conduct for or relating to the regulation
      and
      protection of human health, safety, the environment and natural resources
      (including ambient air, surface water, groundwater, wetlands, land surface
      or
      subsurface strata, wildlife, aquatic species and vegetation). Environmental
      Laws
      include the Comprehensive Environmental Response, Compensation, and Liability
      Act of 1980 (42 U.S.C. Sec.Sec. 9601 et
      seq.)
      (“CERCLA”);
      the
      Hazardous Materials Transportation Authorization Act of 1994 (49 U.S.C. Sec.Sec.
      5101 et
      seq.);
      the
      Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec.Sec. 136
      et
      seq.);
      the
      Solid Waste Disposal Act (42 U.S.C. Sec.Sec. 6901 et
      seq.);
      the
      Toxic Substance Control Act (15 U.S.C. Sec.Sec. 2601 et
      seq.);
      the
      Clean Air Act (42 U.S.C. Sec.Sec. 7401 et
      seq.);
      the
      Federal Water Pollution Control Act (33 U.S.C. Sec.Sec. 1251 et
      seq.);
      the
      Occupational Safety and Health Act (29 U.S.C. Sec.Sec. 651 et
      seq.);
      and
      the Safe Drinking Water Act (42 U.S.C. Sec.Sec. 300(f) et
      seq.),
      and
      any and all regulations promulgated thereunder, and all analogous state, local
      and foreign counterparts or equivalents and any transfer of ownership
      notification or approval statutes.

     

    “Environmental
      Liabilities”
means,
      with respect to any Person, all liabilities, obligations, responsibilities,
      response, remedial and removal costs, investigation and feasibility study costs,
      capital costs, operation and maintenance costs, losses, damages, punitive
      damages, property damages, natural resource damages, consequential damages,
      treble damages, costs and expenses (including all reasonable fees, disbursements
      and expenses of counsel, experts and consultants), fines, penalties, sanctions
      and interest incurred as a result of or related to any claim, suit, action,
      investigation, proceeding or demand by any Person, whether based in contract,
      tort, implied or express warranty, strict liability, criminal or civil statute
      or common law, including any arising under or related to any Environmental
      Laws,
      Environmental Permits, or in connection with any Release or threatened Release
      or presence of a Hazardous Material whether on, at, in, under, from or about
      or
      in the vicinity of any real or personal property.

     

    “Environmental
      Permits”
means
      all permits, licenses, authorizations, certificates, approvals or registrations
      required by any Governmental Authority under any Environmental
      Laws.

     

    “Equipment”
means
      all “equipment,” as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, wherever located and, in any event, including
      all
      such Credit Party’s machinery and equipment, including processing equipment,
      conveyors, machine tools, data processing and computer equipment, including
      embedded software and peripheral equipment and all engineering, processing
      and
      manufacturing equipment, office machinery, furniture, materials handling
      equipment, tools, attachments, accessories, automotive equipment, trailers,
      trucks, forklifts, molds, dies, stamps, motor vehicles, rolling stock and other
      equipment of every kind and nature, trade fixtures and fixtures not forming
      a
      part of real property, together with all additions and accessions thereto,
      replacements therefor, all parts therefor, all substitutes for any of the
      foregoing, fuel therefor, and all manuals, drawings, instructions, warranties
      and rights with respect thereto, and all products and proceeds thereof and
      condemnation awards and insurance proceeds with respect thereto.

     

    
      
        
        

      

      
        A-9

        
          

        

      

      
        
        

      

    

     

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

     

    “ERISA
      Affiliate”
means,
      with respect to any Credit Party, any trade or business (whether or not
      incorporated) that, together with such Credit Party, are treated as a single
      employer within the meaning of Sections 414(b), (c), (m) or (o) of the
      IRC.

     

    “ERISA
      Event”
means,
      with respect to any Credit Party or any ERISA Affiliate, (a) any event described
      in Section 4043(c) of ERISA with respect to a Title IV Plan; (b) the withdrawal
      of any Credit Party or ERISA Affiliate from a Title IV Plan subject to Section
      4063 of ERISA during a plan year in which it was a substantial employer, as
      defined in Section 4001(a)(2) of ERISA; (c) the complete or partial withdrawal
      of any Credit Party or any ERISA Affiliate from any Multiemployer Plan; (d)
      the
      filing of a notice of intent to terminate a Title IV Plan or the treatment
      of a
      plan amendment as a termination under Section 4041 of ERISA; (e) the institution
      of proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC;
      (f) the failure by any Credit Party or ERISA Affiliate to make when due required
      contributions to a Multiemployer Plan or Title IV Plan unless such failure
      is
      cured within 30 days; (g) any other event or condition that might reasonably
      be
      expected to constitute grounds under Section 4042 of ERISA for the termination
      of, or the appointment of a trustee to administer, any Title IV Plan or
      Multiemployer Plan or for the imposition of liability under Section 4069 or
      4212(c) of ERISA; (h) the termination of a Multiemployer Plan under Section
      4041A of ERISA or the reorganization or insolvency of a Multiemployer Plan
      under
      Section 4241 or 4245 of ERISA; or (i) the revocation or threatened
      revocation of a Qualified Plan’s qualification or tax exempt status; or (j) the
      termination of a Plan described in Section 4064 of ERISA.

     

    “ESOP”
means
      a
      Plan that is intended to satisfy the requirements of Section 4975(e)(7) of
      the
      IRC.

     

    “E-System”
means
      any electronic system, including Intralinks(R) and any other Internet or
      extranet-based site, whether such electronic system is owned, operated or hosted
      by Agent, any of its Affiliates, or any of such Person's respective officers,
      directors, employees, attorneys, agents and representatives or any other Person,
      providing for access to data protected by passcodes or other security system.
      

     

    “Event
      of Default”
has
      the
      meaning ascribed to it in Section
      8.1.

     

    “Existing
      Credit Agreement”
has
      the
      meaning ascribed to it in the recitals hereto.

     

    “Fair
      Labor Standards Act”
means
      the Fair Labor Standards Act, 29 U.S.C. Sec.201 et seq.

     

    
      
        
        

      

      
        A-10

        
          

        

      

      
        
        

      

    

     

    “Federal
      Funds Rate”
means,
      for any day, a floating rate equal to the weighted average of the rates on
      overnight federal funds transactions among members of the Federal Reserve
      System, as determined by Agent in its sole discretion, which determination
      shall
      be final, binding and conclusive (absent manifest error).

     

    “Federal
      Reserve Board”
means
      the Board of Governors of the Federal Reserve System.

     

    “Fees”
means
      any and all fees payable to Agent or any Lender pursuant to the Agreement or
      any
      of the other Loan Documents.

     

    “Financial
      Covenants”
means
      the financial covenants set forth in Annex G.

     

    “Financial
      Statements”
means
      the consolidated and consolidating income statements, statements of cash flows
      and balance sheets of Borrower delivered in accordance with Section
      3.4
      and
Annex
      E.

     

    “Fiscal
      Month”
means
      any of the monthly accounting periods of Borrower.

     

    “Fiscal
      Quarter”
means
      any of the quarterly accounting periods of Borrower, ending on March 31, June
      30, September 30 and December 31 of each year.

     

    “Fiscal
      Year”
means
      any of the annual accounting periods of Borrower ending on March 31 of each
      year.

     

    “Fixed
      Charges”
means,
      with respect to any Person for any fiscal period, (a) the aggregate of all
      Interest Expense paid or accrued during such period, plus
      (b)
      scheduled payments of principal with respect to Indebtedness during such period,
      plus
      (c)
      taxes paid in cash during such period.

     

    “Fixed
      Charge Coverage Ratio”
means,
      with respect to any Person for any fiscal period, the ratio of EBITDA, less
      Capital Expenditures, to Fixed Charges. In computing Fixed Charges for any
      fiscal period, interest and principal payments that are due within one week
      after the end of that fiscal period, without duplication, shall be deemed to
      have been paid on the last day of that fiscal period.

     

    “Fixtures”
means
      all “fixtures” as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party.

     

    “Foreign
      Subsidiaries”
means
      all Subsidiaries that are not Domestic Subsidiaries.

     

    “GAAP”
means
      generally accepted accounting principles in the United States of America,
      consistently applied, as such term is further defined in Annex
      G
      to the
      Agreement.

     

    “GE
      Capital”
means
      General Electric Capital Corporation, a Delaware corporation.

     

    
      
        
        

      

      
        A-11

        
          

        

      

      
        
        

      

    

     

    “GE
      Capital Fee Letter”
means
      that certain letter, dated as of the Closing Date, between GE Capital and
      Borrower with respect to certain Fees to be paid from time to time by Borrower
      to GE Capital and other matters.

     

    “General
      Intangibles”
means
      “general intangibles,” as such term is defined in the Code, now owned or
      hereafter acquired by any Credit Party, including all right, title and interest
      that such Credit Party may now or hereafter have in or under any Contract,
      all
      payment intangibles, customer lists, Licenses, Copyrights, Trademarks, Patents,
      and all applications therefor and reissues, extensions or renewals thereof,
      rights in Intellectual Property, interests in partnerships, joint ventures
      and
      other business associations, licenses, permits, copyrights, trade secrets,
      proprietary or confidential information, inventions (whether or not patented
      or
      patentable), technical information, procedures, designs, knowledge, know-how,
      software, data bases, data, skill, expertise, experience, processes, models,
      drawings, materials and records, goodwill (including the goodwill associated
      with any Trademark or Trademark License), all rights and claims in or under
      insurance policies (including insurance for fire, damage, loss and casualty,
      whether covering personal property, real property, tangible rights or intangible
      rights, all liability, life, key man and business interruption insurance, and
      all unearned premiums), uncertificated securities, choses in action, deposit,
      checking and other bank accounts, rights to receive tax refunds and other
      payments, rights to receive dividends, distributions, cash, Instruments and
      other property in respect of or in exchange for pledged Stock and Investment
      Property, rights of indemnification, all books and records, correspondence,
      credit files, invoices and other papers, including without limitation all tapes,
      cards, computer runs and other papers and documents in the possession or under
      the control of such Credit Party or any computer bureau or service company
      from
      time to time acting for such Credit Party.

     

    “Goods”
means
      any “goods” as defined in the Code, now owned or hereafter acquired by any
      Credit Party, wherever located, including embedded software to the extent
      included in “goods” as defined in the Code, manufactured homes, standing timber
      that is cut and removed for sale and unborn young of animals.

     

    “Governmental
      Authority”
means
      any nation or government, any state or other political subdivision thereof,
      and
      any agency, department or other entity exercising executive, legislative,
      judicial, regulatory or administrative functions of or pertaining to
      government.

     

    “Guaranteed
      Indebtedness”
means,
      as to any Person, any obligation of such Person guaranteeing, providing comfort
      or otherwise supporting any Indebtedness, lease, dividend, or other obligation
      (“primary
      obligation”)
      of any
      other Person (the “primary
      obligor”)
      in any
      manner, including any obligation or arrangement of such Person to
      (a) purchase or repurchase any such primary obligation, (b) advance or
      supply funds (i) for the purchase or payment of any such primary obligation
      or
      (ii) to maintain working capital or equity capital of the primary obligor
      or otherwise to maintain the net worth or solvency or any balance sheet
      condition of the primary obligor, (c) 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, (d) protect the beneficiary of such arrangement from loss (other
      than product warranties given in the ordinary course of business) or
      (e) indemnify the owner of such primary obligation against loss in respect
      thereof. The amount of any Guaranteed Indebtedness at any time shall be deemed
      to be an amount equal to the lesser at such time of (x) the stated or
      determinable amount of the primary obligation in respect of which such
      Guaranteed Indebtedness is incurred and (y) the maximum amount for which such
      Person may be liable pursuant to the terms of the instrument embodying such
      Guaranteed Indebtedness, or, if not stated or determinable, the maximum
      reasonably anticipated liability (assuming full performance) in respect
      thereof.

     

    
      
        
        

      

      
        A-12

        
          

        

      

      
        
        

      

    

     

    “Guaranties”
means,
      collectively, any guaranty executed by any Guarantor in favor of Agent and
      Lenders in respect of the Obligations.

     

    “Guarantors”
means
      each US Credit Party, other than Borrower, and each other Person, if any, that
      executes a guaranty or other similar agreement in favor of Agent, for itself
      and
      the ratable benefit of Lenders, in connection with the transactions contemplated
      by the Agreement and the other Loan Documents.

     

    “Hazardous
      Material”
means
      any substance, material or waste that is regulated by, or forms the basis of
      liability now or hereafter under, any Environmental Laws, including any material
      or substance that is (a) defined as a “solid waste,” “hazardous waste,”
“hazardous material,” “hazardous substance,” “extremely hazardous waste,”
“restricted hazardous waste,” “pollutant,” “contaminant,” “hazardous
      constituent,” “special waste,” “toxic substance” or other similar term or phrase
      under any Environmental Laws, or (b) petroleum or any fraction or by-product
      thereof, asbestos, polychlorinated biphenyls (PCB’s), or any radioactive
      substance.

     

    “IC
      Sensors”
means
      IC Sensors, Inc., a California corporation.

     

    “Indebtedness”
means,
      with respect to any Person, without duplication (a) all indebtedness of such
      Person for borrowed money or for the deferred purchase price of property payment
      for which is deferred 6 months or more, but excluding obligations to trade
      creditors incurred in the ordinary course of business that are unsecured and
      not
      overdue by more than 6 months unless being contested in good faith, (b) all
      reimbursement and other obligations with respect to letters of credit, bankers’
acceptances and surety bonds, whether or not matured, (c) all obligations
      evidenced by notes, bonds, debentures or similar instruments, (d) all
      indebtedness created or arising under any conditional sale or other title
      retention agreement with respect to property acquired by such Person (even
      though the rights and remedies of the seller or lender under such agreement
      in
      the event of default are limited to repossession or sale of such property),
      (e)
      all Earnouts payable by such Person, (f) all Capital Lease Obligations and
      the
      present value (discounted at the Index Rate as in effect o the Closing Date)
      of
      future rental payments under all synthetic leases, (g) all obligations of such
      Person under commodity purchase or option agreements or other commodity price
      hedging arrangements, in each case whether contingent or matured, (h) all
      obligations of such Person under any foreign exchange contract, currency swap
      agreement, interest rate swap, cap or collar agreement or other similar
      agreement or arrangement designed to alter the risks of that Person arising
      from
      fluctuations in currency values or interest rates, in each case whether
      contingent or matured, (i) all Indebtedness referred to above secured by (or
      for
      which the holder of such Indebtedness has an existing right, contingent or
      otherwise, to be secured by) any Lien upon or in property or other assets
      (including accounts and contract rights) owned by such Person, even though
      such
      Person has not assumed or become liable for the payment of such Indebtedness,
      and (j) the Obligations.

     

    
      
        
        

      

      
        A-13

        
          

        

      

      
        
        

      

    

     

    “Indemnified
      Liabilities”
has
      the
      meaning ascribed to it in Section
      1.13.

     

    “Indemnified
      Person”
has
      the
      meaning ascribed to it in Section 1.13.

     

    “Index
      Rate”
means,
      for any day, a floating rate equal to the higher of (i) the rate publicly quoted
      from time to time by The Wall Street Journal
      as the
“base rate on corporate loans posted by at least 75% of the nation’s 30 largest
      banks” (or, if The Wall Street
      Journal
      ceases
      quoting a base rate of the type described, the highest per annum rate of
      interest published by the Federal Reserve Board in Federal Reserve statistical
      release H.15 (519) entitled “Selected Interest Rates” as the Bank prime
      loan rate or its equivalent), and (ii) the Federal Funds Rate plus 50 basis
      points per annum. Each change in any interest rate provided for in the Agreement
      based upon the Index Rate shall take effect at the time of such change in the
      Index Rate.

     

    “Index
      Rate Loan”
means
      a
      Loan or portion thereof bearing interest by reference to the Index
      Rate.

     

    “Instruments”
means
      all “instruments,” as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, wherever located, and, in any event, including
      all
      certificated securities, all certificates of deposit, and all notes and other,
      without limitation, evidences of indebtedness, other than instruments that
      constitute, or are a part of a group of writings that constitute, Chattel
      Paper.

     

    “Intellectual
      Property”
means
      any and all Licenses, Patents, Copyrights, Trademarks, and the goodwill
      associated with such Trademarks.

     

    “Intellectual
      Property Security Agreement”
means
      the Amended and Restated Intellectual Property Security Agreement made in favor
      of Agent, on behalf of itself and Lenders, by each applicable US Credit
      Party.

     

    “Intermediate
      Holdings”
means
      Measurement Specialties Foreign Holdings Corporation, a Delaware
      corporation.

     

    “Intercompany
      Notes”
has
      the
      meaning ascribed to it in Section
      6.3.

     

    “Interest
      Expense”
means,
      with respect to any Person for any fiscal period, interest expense (whether
      cash
      or non-cash) of such Person determined in accordance with GAAP for the relevant
      period ended on such date, including interest expense with respect to any
      Indebtedness of such Person and interest expense for the relevant period that
      has been capitalized on the balance sheet of such Person.

     

    “Interest
      Payment Date”
means
      (a) as to any Index Rate Loan, the first Business Day of each month to occur
      while such Loan is outstanding, and (b) as to any LIBOR Loan, the last day
      of
      the applicable LIBOR Period; provided
      that, in
      addition to the foregoing, each of (x) the date upon which all of the
      Commitments have been terminated and the Loans have been paid in full and (y)
      the Commitment Termination Date shall be deemed to be an “Interest
      Payment Date”
with
      respect to any interest that has then accrued under the Agreement.

     

    
      
        
        

      

      
        A-14

        
          

        

      

      
        
        

      

    

     

    “Interest
      Rate Management Obligations”
means
      all Rate Management Obligations arising out of interest rate protection or
      hedging agreements or transactions (including, but not limited to, interest
      rate
      swaps, caps, collars, floors and similar transactions) designed to protect
      or
      manage exposure to the fluctuations in the interest rates applicable to any
      of
      the Loans.

     

    “Inventory”
means
      any “inventory,” as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, wherever located, and in any event including
      inventory, merchandise, goods and other personal property that are held by
      or on
      behalf of any Credit Party for sale or lease or are furnished or are to be
      furnished under a contract of service, or that constitute raw materials, work
      in
      process, finished goods, returned goods, supplies or materials of any kind,
      nature or description used or consumed or to be used or consumed in such Credit
      Party’s business or in the processing, production, packaging, promotion,
      delivery or shipping of the same, including other supplies and embedded
      software.

     

    “Investment
      Property”
means
      all “investment property” as such term is defined in the Code now owned or
      hereafter acquired by any Credit Party, wherever located, including (i) all
      securities, whether certificated or uncertificated, including stocks, bonds,
      interests in limited liability companies, partnership interests, treasuries,
      certificates of deposit, and mutual fund shares; (ii) all securities
      entitlements of any Credit Party, including the rights of such Credit Party
      to
      any securities account and the financial assets held by a securities
      intermediary in such securities account and any free credit balance or other
      money owing by any securities intermediary with respect to that account; (iii)
      all securities accounts of any Credit Party; (iv) all commodity contracts of
      any
      Credit Party; and (v) all commodity accounts held by any Credit
      Party.

     

    “IRC”
means
      the Internal Revenue Code of 1986, as amended, and all regulations promulgated
      thereunder.

     

    “IRS”
means
      the Internal Revenue Service.

     

    “Kenabell
      Holding”
means
      Kenabell Holding Limited, a British Virgin Islands company.

     

    “L/C
      Issuer”
has
      the
      meaning ascribed to it in Annex
      B.

     

    “L/C
      Sublimit”
has
      the
      meaning ascribed to in it Annex
      B.

     

    “Lenders”
means
      GE Capital, the other Lenders named on the signature pages of the Agreement,
      and, if any such Lender shall decide to assign all or any portion of the
      Obligations (other than Rate Management Obligations), such term shall include
      any assignee of such Lender.

     

    “Letter
      of Credit Fee”
has
      the
      meaning ascribed to it in Annex
      B.

     

    “Letter
      of Credit Obligations”
means
      all outstanding obligations incurred by Agent and Lenders at the request of
      Borrower, whether direct or indirect, contingent or otherwise, due or not due,
      in connection with the issuance of Letters of Credit by Agent or another L/C
      Issuer or the purchase of a participation as set forth in Annex
      B
      with
      respect to any Letter of Credit. The amount of such Letter of Credit Obligations
      shall equal the maximum amount that may be payable by Agent or Lenders thereupon
      or pursuant thereto.

     

    
      
        
        

      

      
        A-15

        
          

        

      

      
        
        

      

    

     

    “Letter-of-Credit
      Rights”
means
      “letter-of-credit rights” as such term is defined in the Code, now owned or
      hereafter acquired by any Credit Party, including rights to payment or
      performance under a letter of credit, whether or not such Credit Party, as
      beneficiary, has demanded or is entitled to demand payment or
      performance.

     

    “Letters
      of Credit”
means
      documentary or standby letters of credit issued for the account of Borrower
      by
      any L/C Issuer, and bankers’ acceptances issued by Borrower, for which Agent and
      Lenders have incurred Letter of Credit Obligations. The term does not include
      a
      Swap Related L/C.

     

    “LIBOR
      Business Day”
means
      a
      Business Day on which banks in the City of London are generally open for
      interbank or foreign exchange transactions.

     

    “LIBOR
      Loan”
means
      a
      Loan or any portion thereof bearing interest by reference to the LIBOR
      Rate.

     

    “LIBOR
      Period”
means,
      with respect to any LIBOR Loan, each period commencing on a LIBOR Business
      Day
      selected by Borrower pursuant to the Agreement and ending one, two or three
      months thereafter, as selected by Borrower’s irrevocable notice to Agent as set
      forth in Section
      1.5(e);
      provided,
      that
      the foregoing provision relating to LIBOR Periods is subject to the
      following:

     

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

     

    (b) any
      LIBOR
      Period that would otherwise extend beyond the Commitment Termination Date shall
      end 2 LIBOR Business Days prior to such date;

     

    (c) any
      LIBOR
      Period that begins on the last LIBOR 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 LIBOR Period) shall end on the last LIBOR Business Day of a
      calendar month;

     

    (d) Borrower
      shall select LIBOR Periods so as not to require a payment or prepayment of
      any
      LIBOR Loan during a LIBOR Period for such Loan; and

     

    (e) Borrower
      shall select LIBOR Periods so that there shall be no more than 5 separate LIBOR
      Loans in existence at any one time.

     

    “LIBOR
      Rate”
means
      for each LIBOR Period, a rate of interest determined by Agent equal
      to:

     

    
      
        
        

      

      
        A-16

        
          

        

      

      
        
        

      

    

     

    (a) the
      offered rate for deposits in United States Dollars for the applicable LIBOR
      Period that appears on Telerate Page 3750 as of 11:00 a.m. (London time),
      on the second full LIBOR Business Day next preceding the first day of such
      LIBOR
      Period (unless such date is not a Business Day, in which event the next
      succeeding Business Day will be used); divided by

     

    (b) a
      number
      equal to 1.0 minus
      the
      aggregate (but without duplication) of the rates (expressed as a decimal
      fraction) of reserve requirements in effect on the day that is 2 LIBOR Business
      Days prior to the beginning of such LIBOR Period (including basic, supplemental,
      marginal and emergency reserves under any regulations of the Federal Reserve
      Board or other Governmental Authority having jurisdiction with respect thereto,
      as now and from time to time in effect) for Eurocurrency funding (currently
      referred to as “Eurocurrency Liabilities” in Regulation D of the Federal Reserve
      Board that are required to be maintained by a member bank of the Federal Reserve
      System.

     

    If
      such
      interest rates shall cease to be available from Telerate News Service, the
      LIBOR
      Rate shall be determined from such financial reporting service or other
      information as shall be mutually acceptable to Agent and Borrower.

     

    “License”
means
      any Copyright License, Patent License, Trademark License or other license of
      rights or interests now held or hereafter acquired by any Credit
      Party.

     

    “Lien”
means
      any mortgage or deed of trust, pledge, hypothecation, assignment, deposit
      arrangement, lien, charge, claim, security interest, easement or encumbrance,
      or
      preference, priority or other security agreement or preferential arrangement
      of
      any kind or nature whatsoever (including any lease or title retention agreement,
      any financing lease having substantially the same economic effect as any of
      the
      foregoing, and the filing of, or agreement to give, any financing statement
      perfecting a security interest under the Code or comparable law of any
      jurisdiction).

     

    “Litigation”
has
      the
      meaning ascribed to it in Section
      3.13.

     

    “Loan
      Account”
has
      the
      meaning ascribed to it in Section
      1.12.

     

    “Loan
      Documents”
means
      the Agreement, the Notes, the Collateral Documents, the Master Standby
      Agreement, the Master Documentary Agreement, and all other agreements,
      instruments, documents and certificates identified in the Closing Checklist
      executed and delivered to, or in favor of, Agent or any Lenders and including
      all other pledges, powers of attorney, consents, assignments, contracts,
      notices, and all other written matter whether heretofore, now or hereafter
      executed by or on behalf of any Credit Party, or any employee of any Credit
      Party, and delivered to Agent or any Lender in connection with the Agreement
      or
      the transactions contemplated thereby. Any reference in the Agreement or any
      other Loan Document to a Loan Document shall include all appendices, exhibits
      or
      schedules thereto, and all amendments, restatements, supplements or other
      modifications thereto, and shall refer to the Agreement or such Loan Document
      as
      the same may be in effect at any and all times such reference becomes
      operative.

     

    “Loans”
means
      the Revolving Loan and the Term Loan.

     

    
      
        
        

      

      
        A-17

        
          

        

      

      
        
        

      

    

     

    “Lock
      Boxes”
has
      the
      meaning ascribed to it in Annex
      C.

     

    “Margin
      Stock”
has
      the
      meaning ascribed to it in Section
      3.10.

     

    “Master
      Documentary Agreement”
means
      the Master Agreement for Documentary Letters of Credit dated as of December
      17,
      2004 between Borrower, as Applicant, and GE Capital, as Issuer.

     

    “Master
      Standby Agreement”
means
      the Master Agreement for Standby Letters of Credit dated as of December 17,
      2004
      between Borrower, as Applicant, and GE Capital, as Issuer.

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on (a) the business, assets, operations, prospects
      or
      financial or other condition of Borrower, the US Credit Parties considered
      as a
      whole or the Credit Parties considered as a whole, (b) Borrower’s ability to pay
      any of the Loans or any of the other Obligations in accordance with the terms
      of
      the Agreement, (c) the Collateral or Agent’s Liens, on behalf of itself and
      Lenders, on the Collateral or the priority of such Liens, or (d) Agent’s or any
      Lender’s rights and remedies under the Agreement and the other Loan
      Documents.

     

    “Maximum
      Amount”
means,
      as of any date of determination, an amount equal to the Revolving Loan
      Commitment of all Lenders as of that date.

     

    “Mrehtateb”
has
      the
      meaning ascribed to it in the definition of “BetaTHERM
      Reorganization”.

     

    “Multiemployer
      Plan”
means
      a
“multiemployer plan” as defined in Section 4001(a)(3) of ERISA, and to which any
      Credit Party or ERISA Affiliate is making, is obligated to make or has made
      or
      been obligated to make, contributions on behalf of participants who are or
      were
      employed by any of them.

     

    “Non-Funding
      Lender”
has
      the
      meaning ascribed to it in Section
      9.9(a)(ii).

     

    “Notes”
means,
      collectively, the Revolving Notes and the Term Notes.

     

    “Notice
      of Conversion/Continuation”
has
      the
      meaning ascribed to it in Section
      1.5(e).

     

    “Notice
      of Revolving Credit Advance”
has
      the
      meaning ascribed to it in Section
      1.1(a).

     

    “Obligations”
means
      (a) all loans, advances, debts, liabilities and obligations, for the performance
      of covenants, tasks or duties or for payment of monetary amounts (whether or
      not
      such performance is then required or contingent, or such amounts are liquidated
      or determinable) owing by any Credit Party to Agent or any Lender, and all
      covenants and duties regarding such amounts, of any kind or nature, present
      or
      future, whether or not evidenced by any note, agreement, letter of credit
      agreement or other instrument, arising under the Agreement or any of the other
      Loan Documents, and (b) all Rate Management Obligations. This term includes
      all
      principal, interest (including all interest that accrues after the commencement
      of any case or proceeding by or against any Credit Party in bankruptcy, whether
      or not allowed in such case or proceeding), Fees, Swap Related Reimbursement
      Obligations, hedging obligations under swaps, caps and collar arrangements
      provided by any Lender, expenses, attorneys' fees and any other sum chargeable
      to any Credit Party under the Agreement or any of the other Loan
      Documents.

     

    
      
        
        

      

      
        A-18

        
          

        

      

      
        
        

      

    

     

    “Other
      Rate Management Obligations”
means
      all Rate Management Obligations that are not Interest Rate Management
      Obligations.

     

    “Patent
      License”
means
      rights under any written agreement now owned or hereafter acquired by any Credit
      Party granting any right with respect to any invention on which a Patent is
      in
      existence.

     

    “Patents”
means
      all of the following in which any Credit Party now holds or hereafter acquires
      any interest: (a) all letters patent of the United States or any other country,
      all registrations and recordings thereof, and all applications for letters
      patent of the United States or of any other country, including registrations,
      recordings and applications in the United States Patent and Trademark Office
      or
      in any similar office or agency of the United States, any State or any other
      country, and (b) all reissues, continuations, continuations-in-part or
      extensions thereof.

     

    “Permitted
      Acquisition”
has
      the
      meaning ascribed to it in Section
      6.1.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation.

     

    “Pension
      Plan”
means
      a
      Plan described in Section 3(2) of ERISA.

     

    “Permitted
      Encumbrances”
means
      the following encumbrances: (a) Liens for taxes or assessments or other
      governmental Charges not yet due and payable or which are being contested in
      accordance with Section
      5.2(b);
      (b)
      pledges or deposits of money securing statutory obligations under workmen’s
      compensation, unemployment insurance, social security or public liability laws
      or similar legislation (excluding Liens under ERISA); (c) pledges or deposits
      of
      money securing bids, tenders, contracts (other than contracts for the payment
      of
      money) or leases to which any Credit Party is a party as lessee made in the
      ordinary course of business; (d) inchoate and unperfected workers’, mechanics’
or similar liens arising in the ordinary course of business, so long as such
      Liens attach only to Equipment, Fixtures and/or Real Estate; (e) carriers’,
      warehousemen’s, suppliers’ or other similar possessory liens arising in the
      ordinary course of business and securing liabilities in an outstanding aggregate
      amount not in excess of $50,000 at any time, so long as such Liens attach only
      to Inventory; (f) deposits securing, or in lieu of, surety, appeal or customs
      bonds in proceedings to which any Credit Party is a party; (g) any attachment
      or
      judgment lien not constituting an Event of Default under Section
      8.1(j);
      (h)
      zoning restrictions, easements, licenses, or other restrictions on the use
      of
      any Real Estate or other minor irregularities in title (including leasehold
      title) thereto, so long as the same do not materially impair the use, value,
      or
      marketability of such Real Estate; (i) presently existing or hereafter created
      Liens in favor of Agent, on behalf of Lenders; and (j) Liens expressly permitted
      under clauses
      (b) and (c)
      of
Section
      6.7
      of the
      Agreement.

     

    
      
        
        

      

      
        A-19

        
          

        

      

      
        
        

      

    

     

    “Permitted
      Investments”
means
      the following (i) marketable direct obligations issued or unconditionally
      guaranteed by the United States of America or any agency thereof maturing within
      one year from the date of acquisition thereof, (ii) commercial paper
      maturing no more than one year from the date of creation thereof and currently
      having the highest rating obtainable from either Standard & Poor’s Ratings
      Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (iii)
      certificates of deposit maturing no more than one year from the date of creation
      thereof issued by commercial banks incorporated under the laws of the United
      States of America, each having combined capital, surplus and undivided profits
      of not less than $300,000,000 and having a senior unsecured rating of “A” or
      better by a nationally recognized rating agency (an “A
      Rated Bank”),
      (iv)
      time deposits maturing no more than 30 days from the date of creation thereof
      with A Rated Banks and (v) mutual funds that invest solely in one or more of
      the
      investments described in clauses (i) through (iv) above.

     

    “Person”
means
      any individual, sole proprietorship, partnership, joint venture, trust,
      unincorporated organization, association, corporation, limited liability
      company, institution, public benefit corporation, other entity or government
      (whether federal, state, county, city, municipal, local, foreign, or otherwise,
      including any instrumentality, division, agency, body or department
      thereof).

     

    “Plan”
means,
      at any time, an “employee benefit plan,” as defined in Section 3(3) of ERISA,
      that any Credit Party or ERISA Affiliate maintains, contributes to or has an
      obligation to contribute to on behalf of participants who are or were employed
      by any Credit Party.

     

    “Pledge
      Agreements”
means
      the pledge agreement or agreements dated as of December 17, 2004 executed by
      the
      US Credit Parties in favor of Agent, on behalf of itself and Lenders, pledging
      all Stock of the Domestic Subsidiaries, and 66% of the Stock of the Foreign
      Subsidiaries (including such pledge or other agreements under the laws of the
      jurisdiction of organization of such Foreign Subsidiary as Agent may require
      to
      grant a valid and enforceable perfected security interests prior to the rights
      of all third Persons and subject to no other Liens, except Permitted
      Encumbrances), if any, and all Intercompany Notes owing to or held by it, and
      any pledge agreements entered into after the Closing Date by any Credit Party
      (as required by the Agreement or any other Loan Document).

     

    “Proceeds”
means
      “proceeds,” as such term is defined in the Code, including (a) any and all
      proceeds of any insurance, indemnity, warranty or guaranty payable to any Credit
      Party from time to time with respect to any of the Collateral, (b) any and
      all
      payments (in any form whatsoever) made or due and payable to any Credit Party
      from time to time in connection with any requisition, confiscation,
      condemnation, seizure or forfeiture of all or any part of the Collateral by
      any
      Governmental Authority (or any Person acting under color of governmental
      authority), (c) any claim of any Credit Party against third parties (i) for
      past, present or future infringement of any Patent or Patent License, or (ii)
      for past, present or future infringement or dilution of any Copyright, Copyright
      License, Trademark or Trademark License, or for injury to the goodwill
      associated with any Trademark or Trademark License, (d) any recoveries by any
      Credit Party against third parties with respect to any litigation or dispute
      concerning any of the Collateral including claims arising out of the loss or
      nonconformity of, interference with the use of, defects in, or infringement
      of
      rights in, or damage to, Collateral, (e) all amounts collected on, or
      distributed on account of, other Collateral, including dividends, interest,
      distributions and Instruments with respect to Investment Property and pledged
      Stock, and (f) any and all other amounts, rights to payment or other
      property acquired upon the sale, lease, license, exchange or other disposition
      of Collateral and all rights arising out of Collateral.

     

    
      
        
        

      

      
        A-20

        
          

        

      

      
        
        

      

    

     

    “Pro
      Forma”
means
      the unaudited consolidated and consolidating balance sheet of Borrower and
      its
      Subsidiaries as of March 31, 2006 after giving pro forma
      effect
      to the Related Transactions.

     

    “Projections”
means
      Borrower’s forecasted consolidated and consolidating: (a) balance sheets; (b)
      profit and loss statements; (c) cash flow statements; and (d) capitalization
      statements, all prepared on a Subsidiary by Subsidiary or division-by-division
      basis, if applicable, and otherwise consistent with the historical Financial
      Statements of Borrower, together with appropriate supporting details and a
      statement of underlying assumptions.

     

    “Pro
      Rata Share”
means
      with respect to all matters relating to any Lender (a) with respect to the
      Revolving Loan, the percentage obtained by dividing (i) the Revolving Loan
      Commitment of that Lender by (ii) the aggregate Revolving Loan Commitments
      of
      all Lenders, (b) with respect to the Term Loan, the percentage obtained by
      dividing (i) the Term Loan Commitment of that Lender by (ii) the aggregate
      Term
      Loan Commitments of all Lenders, as any such percentages may be adjusted by
      assignments permitted pursuant to Section
      9.1,
      (c)
      with respect to all Loans, the percentage obtained by dividing (i) the aggregate
      Commitments of that Lender by (ii) the aggregate Commitments of all Lenders,
      and
      (d) with respect to all Loans on and after the Commitment Termination Date,
      the
      percentage obtained by dividing (i) the aggregate outstanding principal balance
      of the Loans held by that Lender, by (ii) the outstanding principal balance
      of
      the Loans held by all Lenders.

     

    “Qualified
      Plan”
means
      a
      Pension Plan that is intended to be tax-qualified under Section 401(a) of the
      IRC.

     

    “Qualified
      Assignee”
means
      (a) any Lender, any Affiliate of any Lender and, with respect to any Lender
      that
      is an investment fund that invests in commercial loans, any other investment
      fund that invests in commercial loans and that is managed or advised by the
      same
      investment advisor as such Lender or by an Affiliate of such investment advisor,
      and (b) any commercial bank, savings and loan association or savings bank or
      any
      other entity which is an “accredited investor” (as defined in Regulation D under
      the Securities Act) which extends credit or buys loans as one of its businesses,
      including insurance companies, mutual funds, lease financing companies and
      commercial finance companies, in each case, which has a rating of BBB or higher
      from S&P and a rating of Baa2 or higher from Moody’s at the date that it
      becomes a Lender and which, through its applicable lending office, is capable
      of
      lending to Borrower without the imposition of any withholding or similar taxes;
      provided that no Person or Affiliate of such Person (other than a Person that
      is
      already a Lender) holding Subordinated Debt or Stock issued by any Credit Party
      shall be a Qualified Assignee.

     

    “Rate
      Management Obligations”
means
      all obligations of any Credit Party to any Lender or any Affiliate of any Lender
      under any commodity purchase or option agreements or other commodity price
      hedging arrangements or under any foreign exchange contract, currency swap
      agreement, interest rate swap, cap or collar agreement or other similar
      agreement or arrangement designed to alter the risks of such Credit Party
      arising from fluctuations in currency values or interest rates, in each case,
      which (a) are permitted under the Agreement and disclosed to Agent, and (b)
      do
      not have a term or maturity which is later than the Commitment Termination
      Date.

     

    
      
        
        

      

      
        A-21

        
          

        

      

      
        
        

      

    

     

    “Rate
      Management Provider”
means
      any Lender or any Affiliate of any Lender to which any Credit Party has any
      outstanding Rate Management Obligations.

     

    “Ratable
      Share”
has
      the
      meaning ascribed to it in Section
      1.1(b).

     

    “Real
      Estate”
has
      the
      meaning ascribed to it in Section
      3.6.

     

    “Related
      Transactions”
means
      the initial borrowing under the Revolving Loan and the Term Loan on the Closing
      Date, the Acquisitions, the payment of all fees, costs and expenses associated
      with all of the foregoing and the execution and delivery of all of the Related
      Transactions Documents.

     

    “Related
      Transactions Documents”
means
      the Loan Documents, the BetaTHERM Acquisition Documents, the YSIS Acquisition
      Documents and all other agreements or instruments executed in connection with
      the Related Transactions.

     

    “Release”
means
      any release, threatened release, spill, emission, leaking, pumping, pouring,
      emitting, emptying, escape, injection, deposit, disposal, discharge, dispersal,
      dumping, leaching or migration of Hazardous Material in the indoor or outdoor
      environment, including the movement of Hazardous Material through or in the
      air,
      soil, surface water, ground water or property.

     

    “Requisite
      Lenders”
means
      Lenders having (a) 66 2/3% or more of the Commitments of all Lenders, or (b)
      if
      the Commitments have been terminated, 66 2/3% or more of the aggregate
      outstanding amount of the Loans; provided
      that so
      long as there are only two Lenders (a Lender and any Affiliates thereof which
      are also Lenders shall be treated a single Lender for purposes of this proviso),
      Requisite Lenders must include both such Lenders.

     

    “Restricted
      Payment”
means,
      with respect to any Credit Party (a) the declaration or payment of any
      dividend or the incurrence of any liability to make any other payment or
      distribution of cash or other property or assets in respect of Stock; (b) any
      payment on account of the purchase, redemption, defeasance, sinking fund or
      other retirement of such Credit Party’s Stock or any other payment or
      distribution made in respect thereof, either directly or indirectly; (c) any
      payment or prepayment of principal of, premium, if any, or interest, fees or
      other charges on or with respect to, and any redemption, purchase, retirement,
      defeasance, sinking fund or similar payment and any claim for rescission with
      respect to, any Subordinated Debt; (d) any payment made to redeem, purchase,
      repurchase or retire, or to obtain the surrender of, any outstanding warrants,
      options or other rights to acquire Stock of such Credit Party now or hereafter
      outstanding; (e) any payment of a claim for the rescission of the purchase
      or
      sale of, or for material damages arising from the purchase or sale of, any
      shares of such Credit Party’s Stock or of a claim for reimbursement,
      indemnification or contribution arising out of or related to any such claim
      for
      damages or rescission; and (f) any payment, loan, contribution, or other
      transfer of funds or other property (including any management fees or other
      fees
      of a similar nature) to any Stockholder of such Credit Party, except in the
      ordinary course of and pursuant to the reasonable requirements of such Credit
      Party’s business and upon fair and reasonable terms that are no less favorable
      to such Credit Party than would be obtained in a comparable arm’s length
      transaction with a Person not an Affiliate of such Credit Party and which are
      approved by the disinterested directors of Borrower.

     

    
      
        
        

      

      
        A-22

        
          

        

      

      
        
        

      

    

     

    “Retiree
      Welfare Plan”
means,
      at any time, a Welfare Plan that provides for continuing coverage or benefits
      for any participant or any beneficiary of a participant after such participant’s
      termination of employment, other than continuation coverage provided pursuant
      to
      Section 4980B of the IRC and at the sole expense of the participant or the
      beneficiary of the participant.

     

    “Revolving
      Credit Advance”
has
      the
      meaning ascribed to it in Section
      1.1(a)(i).

     

    “Revolving
      Lenders”
means,
      as of any date of determination, Lenders having a Revolving Loan
      Commitment.

     

    “Revolving
      Loan”
means,
      at any time, the sum of (i) the aggregate amount of Revolving Credit Advances
      outstanding to Borrower plus
      (ii) the
      aggregate Letter of Credit Obligations incurred on behalf of Borrower. Unless
      the context otherwise requires, references to the outstanding principal balance
      of the Revolving Loan shall include the outstanding balance of Letter of Credit
      Obligations.

     

    “Revolving
      Loan Commitment”
means
      (a) as to any Revolving Lender, the aggregate commitment of such Revolving
      Lender to make Revolving Credit Advances or incur Letter of Credit Obligations
      as set forth on Annex
      J
      to the
      Agreement or in the most recent Assignment Agreement executed by such Revolving
      Lender and (b) as to all Revolving Lenders, the aggregate commitment of all
      Revolving Lenders to make Revolving Credit Advances or incur Letter of Credit
      Obligations, which aggregate commitment shall be Fifty-Five Million Dollars
      ($55,000,000) on the Closing Date, as such amount may be adjusted, if at all,
      from time to time in accordance with the Agreement.

     

    “Revolving
      Note”
has
      the
      meaning ascribed to it in Section 1.1(a)(ii).

     

    “Securitization”
means
      a
      public or private offering by a Lender or any of its direct or indirect
      Affiliates or their respective successors and assigns, of securities which
      represent an interest in, or which are collateralized, in whole or in part,
      by
      the Loans.

     

    “Security
      Agreement”
means
      the Amended and Restated Security Agreement, dated as of the date hereof,
      entered into by and among Agent, on behalf of itself and Lenders, and each
      Credit Party that is a signatory thereto.

     

    “SEC
      Investigation”
means
      the formal investigation of Borrower commenced in June, 2002 by the Division
      of
      Enforcement of the Securities and Exchange Commission relating to Borrower’s
      Quarterly Report on Form 10-Q for the quarter ended December 31,
      2001.

     

    “Senior
      Indebtedness”
means
      any Indebtedness other than Subordinated Debt, Subordinated Earnouts, the Elekon
      Seller Note and the Closing Date Earnouts.

     

    
      
        
        

      

      
        A-23

        
          

        

      

      
        
        

      

    

     

    “Senior
      Leverage Ratio”
means,
      as of any date of determination ,with respect to Borrower, on a consolidated
      basis, the ratio of (a) Senior Indebtedness as of such date of determination,
      to
      (b) EBITDA for the twelve months ending on such date of
      determination.

     

    “Software”
means
      all “software” as such term is defined in the Code, now owned or hereafter
      acquired by any Credit Party, other than software embedded in any category
      of
      Goods, including all computer programs and all supporting information provided
      in connection with a transaction related to any program.

     

    “Solvent”
means,
      with respect to any Person on a particular date, that on such date (a) the
      fair
      value of the property of such Person is greater than the total amount of
      liabilities, including contingent liabilities, of such Person; (b) the present
      fair salable value of the assets of such Person is not less than the amount
      that
      will be required to pay the probable liability of such Person on its debts
      as
      they become absolute and matured; (c) such Person does not intend to, and does
      not believe that it will, incur debts or liabilities beyond such Person’s
      ability to pay as such debts and liabilities mature; and (d) such Person is
      not
      engaged in a business or transaction, and is not about to engage in a business
      or transaction, for which such Person’s property would constitute an
      unreasonably small capital. The amount of contingent liabilities (such as
      litigation, guaranties and pension plan liabilities) at any time shall be
      computed as the amount that, in light of all the facts and circumstances
      existing at the time, represents the amount that can be reasonably be expected
      to become an actual or matured liability and any rights of contribution or
      subrogation that would arise if such liabilities were actually
      paid.

     

    “Stock”
means
      all shares, options, warrants, general or limited partnership interests,
      membership interests or other equivalents (regardless of how designated) of
      or
      in a corporation, partnership, limited liability company or equivalent entity
      whether voting or nonvoting, including common stock, preferred stock or any
      other “equity security” (as such term is defined in Rule 3a11-1 of the General
      Rules and Regulations promulgated by the Securities and Exchange Commission
      under the Securities Exchange Act of 1934).

     

    “Stockholder”
means,
      with respect to any Person, each holder of Stock of such Person.

     

    “Subordinated
      Debt”
means
      any unsecured Indebtedness of any Credit Party subordinated to the Obligations
      in a manner and form satisfactory to Agent and Lenders in their sole discretion,
      as to right and time of payment and as to any other rights and remedies
      thereunder.

     

    “Subordinated
      Earnouts”
means
      any unsecured Indebtedness consisting of Earnouts which are subordinated to
      the
      Obligations in a manner and form satisfactory to Agent and Lenders in their
      sole
      discretion, as to right and time of payment and as to any other rights and
      remedies thereunder.

     

    “Subsidiary”
means,
      with respect to any Person, (a) any corporation of which an aggregate of more
      than 50% of the outstanding Stock having ordinary voting power to elect a
      majority of the board of directors of such corporation (irrespective of whether,
      at the time, Stock of any other class or classes of such corporation shall
      have
      or might have voting power by reason of the happening of any contingency) is
      at
      the time, directly or indirectly, owned legally or beneficially by such Person
      or one or more Subsidiaries of such Person, or with respect to which any such
      Person has the right to vote or designate the vote of 50% or more of such Stock
      whether by proxy, agreement, operation of law or otherwise, and (b) any
      partnership or limited liability company in which such Person and/or one or
      more
      Subsidiaries of such Person shall have an interest (whether in the form of
      voting or participation in profits or capital contribution) of more than 50%
      or
      of which any such Person is a general partner or may exercise the powers of
      a
      general partner. Unless the context otherwise requires, each reference to a
      Subsidiary shall be a reference to a Subsidiary of Borrower.

     

    
      
        
        

      

      
        A-24

        
          

        

      

      
        
        

      

    

     

    “Supporting
      Obligations”
means
      all “supporting obligations” as such term is defined in the Code, including
      letters of credit and guaranties issued in support of Accounts, Chattel Paper,
      Documents, General Intangibles, Instruments, or Investment
      Property.

     

    “Swap
      Related L/C”
means
      a
      letter of credit or other credit enhancement provided by GE Capital to the
      extent supporting the payment obligations by Borrower under an interest rate
      protection or hedging agreement or transaction (including, but not limited
      to,
      interest rate swaps, caps, collars, floors and similar transactions) designed
      to
      protect or manage exposure to the fluctuations in the interest rates applicable
      to any of the Loans, and which agreement or transaction Borrower entered into
      as
      the result of a specific referral pursuant to which GE Capital, GE Corporate
      Financial Services, Inc. or any other Affiliate of GE Capital had arranged
      for
      Borrower to enter into such agreement or transaction. The term includes a Swap
      Related L/C as it may be increased from time to time fully to support Borrower's
      payment obligations under any and all such interest rate protection or hedging
      agreements or transactions. 

     

    “Swap
      Related Reimbursement Obligation”
has
      the
      meaning ascribed to it in Section 1.2A. 

     

    “Target”
has
      the
      meaning ascribed to it in Section
      6.1.

     

    “Taxes”
means
      taxes, levies, imposts, deductions, Charges or withholdings, and all liabilities
      with respect thereto, excluding taxes imposed on or measured by the net income
      of Agent or a Lender by the jurisdictions under the laws of which Agent and
      Lenders are organized or conduct business or any political subdivision
      thereof.

     

    “Termination
      Date”
means
      the date on which (a) the Loans have been indefeasibly repaid in full,
      (b) all other Obligations under the Agreement and the other Loan Documents
      have been completely discharged, (c) all Letter of Credit Obligations have
      been cash collateralized, cancelled or backed by standby letters of credit
      in
      accordance with Annex
      B,
      and
      (d) Borrower shall not have any further right to borrow any monies under
      the Agreement.

     

    “Term
      Lenders”
means
      those Lenders having Term Loan Commitments.

     

    “Term
      Loan”
has
      the
      meaning assigned to it in Section
      1.1(b)(i).

     

    “Term
      Loan Commitment”
means
      (a) as to any Lender with a Term Loan Commitment, the commitment of such Lender
      to make its Pro Rata Share of the Term Loan as set forth on Annex J
      to the
      Agreement or in the most recent Assignment Agreement executed by such Lender,
      and (b) as to all Lenders with a Term Loan Commitment, the aggregate commitment
      of all Lenders to make the Term Loan, which aggregate commitment shall be Twenty
      Million Dollars ($20,000,000) on the Closing Date. After advancing the Term
      Loan, each reference to a Lender’s Term Loan Commitment shall refer to that
      Lender’s Pro Rata Share of the outstanding Term Loan.

     

    
      
        
        

      

      
        A-25

        
          

        

      

      
        
        

      

    

     

    “Term
      Note”
has
      the
      meaning assigned to it in Section
      1.1(b)(i).

     

    “Title
      IV Plan”
means
      a
      Pension Plan (other than a Multiemployer Plan), that is covered by Title IV
      of
      ERISA, and that any Credit Party or ERISA Affiliate maintains, contributes
      to or
      has an obligation to contribute to on behalf of participants who are or were
      employed by any of them.

     

    “Total
      Leverage Ratio”
means,
      as of any date of determination ,with respect to Borrower, on a consolidated
      basis, the ratio of (a) Indebtedness as of such date of determination, to (b)
      EBITDA for the twelve months ending on such date of determination..

     

    “Trademark
      License”
means
      rights under any written agreement now owned or hereafter acquired by any Credit
      Party granting any right to use any Trademark.

     

    “Trademarks”
means
      all of the following now owned or hereafter adopted or acquired by any Credit
      Party: (a) all trademarks, trade names, corporate names, business names, trade
      styles, service marks, logos, other source or business identifiers, prints
      and
      labels on which any of the foregoing have appeared or appear, designs and
      general intangibles of like nature (whether registered or unregistered), all
      registrations and recordings thereof, and all applications in connection
      therewith, including registrations, recordings and applications in the United
      States Patent and Trademark Office or in any similar office or agency of the
      United States, any state or territory thereof, or any other country or any
      political subdivision thereof; (b) all reissues, extensions or renewals thereof;
      and (c) all goodwill associated with or symbolized by any of the
      foregoing.

     

    “Unfunded
      Pension Liability”
means,
      at any time, the aggregate amount, if any, of the sum of (a) the amount by
      which
      the present value of all accrued benefits under each Title IV Plan exceeds
      the
      fair market value of all assets of such Title IV Plan allocable to such benefits
      in accordance with Title IV of ERISA, all determined as of the most recent
      valuation date for each such Title IV Plan using the actuarial assumptions
      for
      funding purposes in effect under such Title IV Plan, and (b) for a period of
      5
      years following a transaction which might reasonably be expected to be covered
      by Section 4069 of ERISA, the liabilities (whether or not accrued) that could
      be
      avoided by any Credit Party or any ERISA Affiliate as a result of such
      transaction.

     

    “US
      Credit Party”
means
      Borrower and its Domestic Subsidiaries.

     

    “Welfare
      Plan”
means
      a
      Plan described in Section 3(i) of ERISA.

     

    “YSIS”
means
      YSIS Incorporated, a corporation incorporated under the laws of the State of
      Ohio.

     

    
      
        
        

      

      
        A-26

        
          

        

      

      
        
        

      

    

     

    “YSIS
      Acquisition”
means
      the acquisition of all of all of the Stock of YSIS pursuant to the YSI
      Acquisition Agreement.

     

    “YSIS
      Acquisition Agreement”
means
      the Agreement of Purchase and Sale dated April 3, 2006 among the YSI Seller
      and
      Borrower, as buyer. 

     

    “YSIS
      Acquisition Documents”
means
      the YSI Acquisition Agreement and all other agreements or instruments executed
      in connection with the YSI Acquisition.

     

    “YSIS
      Seller”
means
      YSI Incorporated, an Ohio corporation.

     

    Rules
      of
      construction with respect to accounting terms used in the Agreement or the
      other
      Loan Documents shall be as set forth in Annex
      G.
      All
      other undefined terms contained in any of the Loan Documents shall, unless
      the
      context indicates otherwise, have the meanings provided for by the Code to
      the
      extent the same are used or defined therein; in the event that any term is
      defined differently in different Articles or Divisions of the Code, the
      definition contained in Article or Division 9 shall control. Unless otherwise
      specified, references in the Agreement or any of the Appendices to a Section,
      subsection or clause refer to such Section, subsection or clause as contained
      in
      the Agreement. The words “herein,” “hereof” and “hereunder” and other words of
      similar import refer to the Agreement as a whole, including all Annexes,
      Exhibits and Schedules, as the same may from time to time be amended, restated,
      modified or supplemented, and not to any particular section, subsection or
      clause contained in the Agreement or any such Annex, Exhibit or
      Schedule.

     

    Wherever
      from the context it appears appropriate, each term stated in either the singular
      or plural shall include the singular and the plural, and pronouns stated in
      the
      masculine, feminine or neuter gender shall include the masculine, feminine
      and
      neuter genders. The words “including”, “includes” and “include” shall be deemed
      to be followed by the words “without limitation”; the word “or” is not
      exclusive; references to Persons include their respective successors and assigns
      (to the extent and only to the extent permitted by the Loan Documents) or,
      in
      the case of governmental Persons, Persons succeeding to the relevant functions
      of such Persons; and all references to statutes and related regulations shall
      include any amendments of the same and any successor statutes and regulations.
      Whenever any provision in any Loan Document refers to the knowledge (or an
      analogous phrase) of any Credit Party, such words are intended to signify that
      such Credit Party has actual knowledge or awareness of a particular fact or
      circumstance or that such Credit Party, if it had exercised reasonable
      diligence, would have known or been aware of such fact or circumstance. For
      purposes of determining an amount in Dollars outstanding in another currency,
      the Dollar Equivalent Amount of such currency on the date of any such
      determination shall be used.

     

    
      
        
        

      

      
        A-27

        
          

        

      

      
        
        

      

    

    ANNEX
      B (Section
      1.2)

     

    to

     

    CREDIT
      AGREEMENT

     

    LETTERS
      OF CREDIT

     

    (a) Issuance.
      Subject
      to the terms and conditions of the Agreement, Agent and Revolving Lenders agree
      to incur, from time to time prior to the Commitment Termination Date, upon
      the
      request of Borrower and for Borrower’s account, Letter of Credit Obligations by
      causing Letters of Credit to be issued by GE Capital or a Subsidiary thereof
      or
      a bank or other legally authorized Person selected by or acceptable to Agent
      in
      its sole discretion (each, an “L/C
      Issuer”)
      for
      Borrower’s account and guaranteed by Agent; provided, that if the L/C Issuer is
      a Revolving Lender, then such Letters of Credit shall not be guaranteed by
      Agent
      but rather each Revolving Lender shall, subject to the terms and conditions
      hereinafter set forth, purchase (or be deemed to have purchased) risk
      participations in all such Letters of Credit issued with the written consent
      of
      Agent, as more fully described in paragraph (b)(ii) below. The aggregate amount
      of all such Letter of Credit Obligations shall not at any time exceed the least
      of (i) TWO MILLION DOLLARS ($2,000,000) (the “L/C
      Sublimit”),
      and
      (ii) the Maximum Amount less the aggregate outstanding principal balance of
      the Revolving Credit Advances. No such Letter of Credit shall have an expiry
      date that is more than one year following the date of issuance thereof, unless
      otherwise determined by Agent in its sole discretion, and neither Agent nor
      Revolving Lenders shall be under any obligation to incur Letter of Credit
      Obligations in respect of, or purchase risk participations in, any Letter of
      Credit having an expiry date that is later than the Commitment Termination
      Date.

     

    (b)  Advances
      Automatic; Participations.
      In the
      event that Agent or any Revolving Lender shall make any payment on or pursuant
      to any Letter of Credit Obligation, such payment shall then be deemed
      automatically to constitute a Revolving Credit Advance under Section
      1.1(a)
      of the
      Agreement regardless of whether a Default or Event of Default has occurred
      and
      is continuing and notwithstanding Borrower’s failure to satisfy the conditions
      precedent set forth in Section
      2,
      and
      each Revolving Lender shall be obligated to pay its Pro Rata Share thereof
      in
      accordance with the Agreement. The failure of any Revolving Lender to make
      available to Agent for Agent’s own account its Pro Rata Share of any such
      Revolving Credit Advance or payment by Agent under or in respect of a Letter
      of
      Credit shall not relieve any other Revolving Lender of its obligation hereunder
      to make available to Agent its Pro Rata Share thereof, but no Revolving Lender
      shall be responsible for the failure of any other Revolving Lender to make
      available such other Revolving Lender’s Pro Rata Share of any such
      payment.

     

    (ii) If
      it
      shall be illegal or unlawful for Borrower to incur Revolving Credit Advances
      as
      contemplated by paragraph (b)(i) above because of an Event of Default described
      in Sections
      8.1(h) or (i)
      or
      otherwise or if it shall be illegal or unlawful for any Revolving Lender to
      be
      deemed to have assumed a ratable share of the reimbursement obligations owed
      to
      an L/C Issuer, or if the L/C Issuer is a Revolving Lender, then (i) immediately
      and without further action whatsoever, each Revolving Lender shall be deemed
      to
      have irrevocably and unconditionally purchased from Agent (or such L/C Issuer,
      as the case may be) an undivided interest and participation equal to such
      Revolving Lender’s Pro Rata Share (based on the Revolving Loan Commitments) of
      the Letter of Credit Obligations in respect of all Letters of Credit then
      outstanding and (ii) thereafter, immediately upon issuance of any Letter of
      Credit, each Revolving Lender shall be deemed to have irrevocably and
      unconditionally purchased from Agent (or such L/C Issuer, as the case may be)
      an
      undivided interest and participation in such Revolving Lender’s Pro Rata Share
      (based on the Revolving Loan Commitments) of the Letter of Credit Obligations
      with respect to such Letter of Credit on the date of such issuance. Each
      Revolving Lender shall fund its participation in all payments or disbursements
      made under the Letters of Credit in the same manner as provided in the Agreement
      with respect to Revolving Credit Advances.

     

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

     

    (c) Cash
      Collateral.
       If Borrower is required to provide cash collateral for any Letter of
      Credit Obligations pursuant to the Agreement prior to the Commitment Termination
      Date, Borrower will pay to Agent for the ratable benefit of itself and Revolving
      Lenders cash or cash equivalents acceptable to Agent (“Cash
      Equivalents”)
      in an
      amount equal to 105% of the maximum amount then available to be drawn under
      each
      applicable Letter of Credit outstanding. Such funds or Cash Equivalents shall
      be
      held by Agent in a cash collateral account (the “Cash
      Collateral Account”)
      maintained at a bank or financial institution acceptable to Agent. The Cash
      Collateral Account shall be in the name of Borrower and shall be pledged to,
      and
      subject to the control of, Agent, for the benefit of Agent and Lenders, in
      a
      manner satisfactory to Agent. Borrower hereby pledges and grants to Agent,
      on
      behalf of itself and Lenders, a security interest in all such funds and Cash
      Equivalents held in the Cash Collateral Account from time to time and all
      proceeds thereof, as security for the payment of all amounts due in respect
      of
      the Letter of Credit Obligations and other Obligations, whether or not then
      due.
      The Agreement, including this Annex
      B,
      shall
      constitute a security agreement under applicable law.

     

    (ii) If
      any
      Letter of Credit Obligations, whether or not then due and payable, shall for
      any
      reason be outstanding on the Commitment Termination Date, Borrower shall either
      (A) provide cash collateral therefor in the manner described above, or (B)
      cause
      all such Letters of Credit and guaranties thereof, if any, to be canceled and
      returned, or (C) deliver a stand-by letter (or letters) of credit in guarantee
      of such Letter of Credit Obligations, which stand-by letter (or letters) of
      credit shall be of like tenor and duration (plus 30 additional days) as, and
      in
      an amount equal to 105% of the aggregate maximum amount then available to be
      drawn under, the Letters of Credit to which such outstanding Letter of Credit
      Obligations relate and shall be issued by a Person, and shall be subject to
      such
      terms and conditions, as are be satisfactory to Agent in its sole
      discretion.

     

    (iii) From
      time
      to time after funds are deposited in the Cash Collateral Account by Borrower,
      whether before or after the Commitment Termination Date, Agent may apply such
      funds or Cash Equivalents then held in the Cash Collateral Account to the
      payment of any amounts, and in such order as Agent may elect, as shall be or
      shall become due and payable by Borrower to Agent and Lenders with respect
      to
      such Letter of Credit Obligations of Borrower and, upon the satisfaction in
      full
      of all Letter of Credit Obligations of Borrower, to any other Obligations then
      due and payable.

     

    (iv) Neither
      Borrower nor any Person claiming on behalf of or through Borrower shall have
      any
      right to withdraw any of the funds or Cash Equivalents held in the Cash
      Collateral Account, except that upon the termination of all Letter of Credit
      Obligations and the payment of all amounts payable by Borrower to Agent and
      Lenders in respect thereof, any funds remaining in the Cash Collateral Account
      shall be applied to other Obligations then due and owing and upon payment in
      full of such Obligations, any remaining amount shall be paid to Borrower or
      as
      otherwise required by law. Interest earned on deposits in the Cash Collateral
      Account shall be for the account of Agent.

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

     

    (d) Fees
      and Expenses.
      Borrower agrees to pay to Agent for the benefit of Revolving Lenders, as
      compensation to such Lenders for Letter of Credit Obligations incurred
      hereunder, (i) all costs and expenses incurred by Agent or any Lender on account
      of such Letter of Credit Obligations, and (ii) for each month during which
      any
      Letter of Credit Obligation shall remain outstanding, a fee (the “Letter
      of Credit Fee”)
      in an
      amount equal to the Applicable L/C Margin from time to time in effect multiplied
      by the maximum amount available from time to time to be drawn under the
      applicable Letter of Credit. Such fee shall be paid to Agent for the benefit
      of
      the Revolving Lenders in arrears, on the first day of each month and on the
      Commitment Termination Date. In addition, Borrower shall pay to any L/C Issuer,
      on demand, such fees (including all per annum fees), charges and expenses of
      such L/C Issuer in respect of the issuance, negotiation, acceptance, amendment,
      transfer and payment of such Letter of Credit or otherwise payable pursuant
      to
      the application and related documentation under which such Letter of Credit
      is
      issued.

     

    (e) Request
      for Incurrence of Letter of Credit Obligations.
      Borrower shall give Agent at least 2 Business Days’ prior written notice
      requesting the incurrence of any Letter of Credit Obligation. The notice shall
      be accompanied by the form of the Letter of Credit and a completed application
      for such Letter of Credit (both of which shall be acceptable to the L/C Issuer).
      Notwithstanding anything contained herein to the contrary, Letter of Credit
      applications by Borrower and approvals by Agent and the L/C Issuer may be made
      and transmitted pursuant to electronic codes and security measures mutually
      agreed upon and established by and among Borrower, Agent and the L/C
      Issuer.

     

    (f) Obligation
      Absolute.
      The
      obligation of Borrower to reimburse Agent and Revolving Lenders for payments
      made with respect to any Letter of Credit Obligation shall be absolute,
      unconditional and irrevocable, without necessity of presentment, demand, protest
      or other formalities, and the obligations of each Revolving Lender to make
      payments to Agent with respect to Letters of Credit shall be unconditional
      and
      irrevocable. Such obligations of Borrower and Revolving Lenders shall be paid
      strictly in accordance with the terms hereof under all circumstances including
      the following:

     

    (i) any
      lack
      of validity or enforceability of any Letter of Credit or the Agreement or the
      other Loan Documents or any other agreement;

     

    (ii) the
      existence of any claim, setoff, defense or other right that Borrower or any
      of
      its Affiliates or any Lender may at any time have against a beneficiary or
      any
      transferee of any Letter of Credit (or any Persons or entities for whom any
      such
      transferee may be acting), Agent, any Lender, or any other Person, whether
      in
      connection with the Agreement, the Letter of Credit, the transactions
      contemplated herein or therein or any unrelated transaction (including any
      underlying transaction between Borrower or any of its Affiliates and the
      beneficiary for which the Letter of Credit was procured);

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

    

     

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

     

    (iv) payment
      by Agent (except as otherwise expressly provided in paragraph (g)(ii)(C) below)
      or any L/C Issuer under any Letter of Credit or guaranty thereof against
      presentation of a demand, draft or certificate or other document that does
      not
      comply with the terms of such Letter of Credit or such guaranty;

     

    (v) any
      other
      circumstance or event whatsoever, that is similar to any of the foregoing;
      or

     

    (vi) the
      fact
      that a Default or an Event of Default has occurred and is
      continuing.

     

    (g) Indemnification;
      Nature of Lenders’ Duties.
       In addition to amounts payable as elsewhere provided in the Agreement,
      Borrower hereby agrees to pay and to protect, indemnify, and save harmless
      Agent
      and each Lender from and against any and all claims, demands, liabilities,
      damages, losses, costs, charges and expenses (including reasonable attorneys’
fees and allocated costs of internal counsel) that Agent or any Lender may
      incur
      or be subject to as a consequence, direct or indirect, of (A) the issuance
      of
      any Letter of Credit or guaranty thereof, or (B) the failure of Agent or
      any Lender seeking indemnification or of any L/C Issuer to honor a demand for
      payment under any Letter of Credit or guaranty thereof as a result of any act
      or
      omission, whether rightful or wrongful, of any present or future de jure or
      de
      facto government or Governmental Authority, in each case other than to the
      extent solely as a result of the gross negligence or willful misconduct of
      Agent
      or such Lender (as finally determined by a court of competent
      jurisdiction).

     

    (ii) As
      between Agent and any Lender and Borrower, Borrower assumes all risks of the
      acts and omissions of, or misuse of any Letter of Credit by beneficiaries of
      any
      Letter of Credit. In furtherance and not in limitation of the foregoing, to
      the
      fullest extent permitted by law neither Agent nor any Lender shall be
      responsible for: (A) the form, validity, sufficiency, accuracy, genuineness
      or
      legal effect of any document issued by any party in connection with the
      application for and issuance of any Letter of Credit, even if it should in
      fact
      prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent
      or forged; (B) the validity or sufficiency of any instrument transferring or
      assigning or purporting to transfer or assign any Letter of Credit or the rights
      or benefits thereunder or proceeds thereof, in whole or in part, that may prove
      to be invalid or ineffective for any reason; (C) failure of the beneficiary
      of any Letter of Credit to comply fully with conditions required in order to
      demand payment under such Letter of Credit; provided,
      that in
      the case of any payment by Agent under any Letter of Credit or guaranty thereof,
      Agent shall be liable to the extent such payment was made solely as a result
      of
      its gross negligence or willful misconduct (as finally determined by a court
      of
      competent jurisdiction) in determining that the demand for payment under such
      Letter of Credit or guaranty thereof complies on its face with any applicable
      requirements for a demand for payment under such Letter of Credit or guaranty
      thereof; (D) errors, omissions, interruptions or delays in transmission or
      delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether
      or not they may be in cipher; (E) errors in interpretation of technical terms;
      (F) any loss or delay in the transmission or otherwise of any document required
      in order to make a payment under any Letter of Credit or guaranty thereof or
      of
      the proceeds thereof; (G) the credit of the proceeds of any drawing under any
      Letter of Credit or guaranty thereof; and (H) any consequences arising from
      causes beyond the control of Agent or any Lender. None of the above shall
      affect, impair, or prevent the vesting of any of Agent’s or any Lender’s rights
      or powers hereunder or under the Agreement.

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

     

    (iii) Nothing
      contained herein shall be deemed to limit or to expand any waivers, covenants
      or
      indemnities made by Borrower in favor of any L/C Issuer in any letter of credit
      application, reimbursement agreement or similar document, instrument or
      agreement between Borrower and such L/C Issuer, including a Master Documentary
      Agreement and a Master Standby Agreement entered into with Agent.

     

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

    ANNEX
      C (Section
      1.8)

     

    to

     

    CREDIT
      AGREEMENT

     

    CASH
      MANAGEMENT SYSTEM

     

    Borrower
      shall, and shall cause its Domestic Subsidiaries to, establish and maintain
      the
      Cash Management Systems described below:

     

    (a) On
      or
      before the Closing Date and until the Termination Date, Borrower shall (i)
      establish lock boxes (“Lock
      Boxes”)
      or, at
      Agent’s discretion, blocked accounts (“Blocked
      Accounts”)
      at one
      or more of the banks set forth in Disclosure
      Schedule (3.19),
      and
      shall request in writing and otherwise take such reasonable steps to ensure
      that
      all Account Debtors forward payment directly to such Lock Boxes, and (ii)
      deposit and cause its Domestic Subsidiaries to deposit or cause to be deposited
      promptly, and in any event no later than the first Business Day after the date
      of receipt thereof, all cash, checks, drafts or other similar items of payment
      relating to or constituting payments made in respect of any and all Collateral
      (whether or not otherwise delivered to a Lock Box) into one or more Blocked
      Accounts in Borrower’s name or any such Domestic Subsidiary’s name and at a bank
      identified in Disclosure
      Schedule (3.19)
      (each, a
“Relationship
      Bank”).
      On or
      before the Closing Date, Borrower shall have established a concentration account
      in its name (the “Concentration
      Account”)
      at the
      bank that shall be designated as the Concentration Account bank for Borrower
      in
Disclosure
      Schedule (3.19)
      (the
“Concentration
      Account Bank”)
      which
      bank shall be reasonably satisfactory to Agent.

     

    (b) Borrower
      may maintain, in its name, an account (each a “Disbursement
      Account”
and
      collectively, the “Disbursement
      Accounts”)
      at a
      bank acceptable to Agent into which Agent shall, from time to time, deposit
      proceeds of Revolving Credit Advances made to Borrower pursuant to Section
      1.1
      for use
      by Borrower in accordance with the provisions of Section
      1.4.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    (c) On
      or
      before the Closing Date (or such later date as Agent shall consent to in
      writing), the Concentration Account Bank, each bank where a Disbursement Account
      is maintained and all other Relationship Banks, shall have entered into
      tri-party blocked account agreements with Agent, for the benefit of itself
      and
      Lenders, and Borrower and Domestic Subsidiaries thereof, as applicable, in
      form
      and substance reasonably acceptable to Agent (each a “Blocked
      Account Agreement”),
      which
      shall become operative on or prior to the Closing Date. Each such Blocked
      Account Agreement shall provide, among other things, that (i) all items of
      payment deposited in such account and proceeds thereof deposited in the
      Concentration Account are held by such bank as agent or bailee-in-possession
      for
      Agent, on behalf of itself and Lenders, (ii) the bank executing such agreement
      has no rights of setoff or recoupment or any other claim against such account,
      as the case may be, other than for payment of its service fees and other charges
      directly related to the administration of such account and for returned checks
      or other items of payment, and (iii) from and after the Closing Date (A) with
      respect to banks at which a Blocked Account is maintained, such bank agrees,
      from and after the receipt of a notice (an “Activation
      Notice”)
      from
      Agent (which Activation Notice may be given by Agent at any time at which a
      Default or Event of Default has occurred and is continuing (an “Activation
      Event”)),
      to
      forward immediately all amounts in each Blocked Account to the Concentration
      Account Bank and to commence the process of daily sweeps from such Blocked
      Account into the Concentration Account and (B) with respect to the Concentration
      Account Bank, such bank agrees from and after the
      receipt of an Activation Notice from Agent upon the occurrence of an Activation
      Event,
      to
      immediately forward all amounts received in the Concentration Account to the
      Collection Account through daily sweeps from such Concentration Account into
      the
      Collection Account. From and after the date Agent has delivered an Activation
      Notice to any bank with respect to any Blocked Account(s), Borrower shall not,
      and shall not cause or permit any Domestic Subsidiary thereof to, accumulate
      or
      maintain cash in Disbursement Accounts or payroll accounts as of any date of
      determination in excess of checks outstanding against such accounts as of that
      date and amounts necessary to meet minimum balance requirements; provided that
      from and after the Closing Date, Borrower shall not, and shall not cause or
      permit any Domestic Subsidiary thereof to, accumulate or maintain cash in (i)
      the controlled disbursement accounts (account numbers 80228776, 80228784,and
      80228792 listed on Disclosure
      Schedule (3.19)
      with
      Bank of America) as of any date of determination in excess of checks clearing
      against such accounts as of that date or (ii) the master operating account
      (account number 94229225705 listed on Disclosure
      Schedule (3.19)
      with
      Bank of America) as of any date of determination in excess of (x)
      so
      long as no Event of Default has occurred and is continuing, $4,000,000
      and (y) so long as any Event of Default has occurred and is continuing, such
      amount as may be determined by Agent in its discretion. Prior to receipt of
      an
      Activation Notice from Agent upon the occurrence of an Activation Event, funds
      in such master operating account in excess of such maximum amount shall be
      held
      in a money market or other account (the “Investment Account”) at a bank or other
      financial institution acceptable to Agent subject to a Blocked Account Agreement
      or a Control Letter; provided that Borrower shall within five (5) Business
      Days
      after the Closing Date, establish the Investment Account and cause the
      Investment Account to subject to a Blocked Account Agreement or a Control
      Letter.

     

    (d) So
      long
      as no Default or Event of Default has occurred and is continuing, Borrower
      may
      amend Disclosure
      Schedule (3.19)
      to add
      or replace a Relationship Bank, Lock Box or Blocked Account or to replace any
      Concentration Account or any Disbursement Account; provided,
      that
      (i) Agent shall have consented in writing in advance to the opening of such
      account or Lock Box with the relevant bank and (ii) prior to the time of the
      opening of such account or Lock Box, Borrower or its Domestic Subsidiaries,
      as
      applicable, and such bank shall have executed and delivered to Agent a Blocked
      Account Agreement, in form and substance reasonably satisfactory to Agent.
      Borrower shall close any of its accounts (and establish replacement accounts
      in
      accordance with the foregoing sentence) promptly and in any event within 30
      days
      following notice from Agent that the creditworthiness of any bank holding an
      account is no longer acceptable in Agent’s reasonable judgment, or as promptly
      as practicable and in any event within 60 days following notice from Agent
      that
      the operating performance, funds transfer or availability procedures or
      performance with respect to accounts or Lock Boxes of the bank holding such
      accounts or Agent’s liability under any Blocked Account Agreement with such bank
      is no longer acceptable in Agent’s reasonable judgment.

     

    (e) The
      Lock
      Boxes, Blocked Accounts, Disbursement Accounts and the Concentration Account
      shall be cash collateral accounts, with all cash, checks and other similar
      items
      of payment in such accounts securing payment of the Loans and all other
      Obligations, and in which Borrower and each Domestic Subsidiary thereof shall
      have granted a Lien to Agent, on behalf of itself and Lenders, pursuant to
      the
      Security Agreement.

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    (f) All
      amounts deposited in the Collection Account shall be deemed received by Agent
      in
      accordance with Section
      1.10
      and
      shall be applied (and allocated) by Agent in accordance with Section
      1.11.
      In no
      event shall any amount be so applied unless and until such amount shall have
      been credited in immediately available funds to the Collection
      Account.

     

    (g) Borrower
      shall and shall cause its Affiliates, officers, employees, agents, directors
      or
      other Persons acting for or in concert with Borrower (each a “Related
      Person”)
      to (i)
      hold in trust for Agent, for the benefit of itself and Lenders, all checks,
      cash
      and other items of payment received by Borrower or any such Related Person,
      and
      (ii) within 1 Business Day after receipt by Borrower or any such Related Person
      of any checks, cash or other items of payment, deposit the same into a Blocked
      Account. Borrower and each Related Person thereof acknowledges and agrees that
      all cash, checks or other items of payment constituting proceeds of Collateral
      are part of the Collateral. All proceeds of the sale or other disposition of
      any
      Collateral, shall be deposited directly into Blocked Accounts.

     

    (h) Notwithstanding
      the foregoing provisions of this Annex
      C,
      so long
      as no Default or Event of Default has occurred and is continuing, Borrower
      shall
      not be required to obtain Blocked Account Agreements, or to deposit and cause
      the applicable Credit Parties to deposit or cause to be deposited all cash,
      checks, drafts or other similar items of payment relating to or constituting
      payments made in respect of any and all Collateral into Blocked Accounts, with
      respect to the following accounts: (i) Borrower’s account 6143200514411 listed
      on Disclosure
      Schedule (3.19)
      with
      Scotiabank, provided
      that no
      more than $25,000 shall be held in such account for more than one Business
      Day;
      (ii) Borrower’s account 203000908688 listed on Disclosure
      Schedule (3.19)
      with
      Wachovia Bank, provided
      that no
      more than $10,000 shall be held in such account for more than one Business
      Day;
      (iii) the accounts of YSIS Incorporated listed on Disclosure
      Schedule (3.19)
      with US
      Bank, provided
      that no
      more than $50,000 in the aggregate shall be held in such accounts for more
      than
      one Business Day and all of such accounts shall be closed no later than May
      3,
      2006; and (iv) the accounts of Mrehtateb listed on Disclosure
      Schedule (3.19)
      with
      BankNorth, N.A., provided
      that no
      more than $50,000 shall be held in such accounts for more than one Business
      Day,
      and all of such accounts shall be closed no later than May 3, 2006.

     

    (a) 

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

    ANNEX
      D (Section 2.1(a))

     

    to

     

    CREDIT
      AGREEMENT

     

    CLOSING
      CHECKLIST

     

    In
      addition to, and not in limitation of, the conditions described in Section
      2.1
      of the
      Agreement, pursuant to Section
      2.1(a),
      the
      following items must be received by Agent in form and substance satisfactory
      to
      Agent on or prior to the Closing Date (each capitalized term used but not
      otherwise defined herein shall have the meaning ascribed thereto in Annex
      A
      to the
      Agreement):

     

    A. Appendices.
      All
      Appendices to the Agreement, in form and substance satisfactory to
      Agent.

     

    B. Revolving
      Notes and Term Notes.
      Duly
      executed originals of the Revolving Notes and Term Notes for each applicable
      Lender, dated the Closing Date.

     

    C. Guaranties.
      Amended
      and Restated Guaranty executed by and each US Credit Party in favor of Agent,
      for the benefit of Lenders.

     

    D. Security
      Agreement.
      Duly
      executed originals of the Amended and Restated Security Agreement executed
      by
      and each US Credit Party, and all instruments, documents and agreements executed
      pursuant thereto.

     

    E. Pledge
      Agreement.
      Duly
      executed originals of the Amended and Restated Pledge Agreement executed by
      Borrower and each of its Domestic Subsidiaries accompanied by (as applicable)
      (i) (to the extent not previously delivered in connection with the Existing
      Credit Agreement) share certificates representing all of the outstanding Stock
      being pledged pursuant to such Pledge Agreement and stock powers for such share
      certificates executed in blank, (ii) the original Intercompany Notes and other
      instruments evidencing Indebtedness being pledged pursuant to such Pledge
      Agreement, duly endorsed in blank, (iii) such documents duly executed by each
      US
      Credit Party (including financing statements under the Code and other applicable
      documents under the laws of any jurisdiction with respect to the perfection
      of
      Liens, including under the laws of the jurisdictions of organization of Kenabell
      Holding and (c) as Agent may request in order to perfect its security interests
      in such Stock and other Collateral.

     

    F. Security
      Interests and Code Filings.
      (a)
      Evidence satisfactory to Agent that Agent (for the benefit of itself and
      Lenders) has a valid and perfected first priority security interest in the
      Collateral, including (i) such documents duly executed by each Credit Party
      (including financing statements under the Code and other applicable documents
      under the laws of any jurisdiction with respect to the perfection of Liens)
      as
      Agent may request in order to perfect its security interests in the Collateral
      and (ii) copies of Code search reports listing all effective financing
      statements that name any US Credit Party as debtor, together with copies of
      such
      financing statements, none of which shall cover the Collateral.

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

     

    (b) Evidence
      satisfactory to Agent, including copies, of all UCC-1 and other financing
      statements filed in favor of any US Credit Party with respect to each location,
      if any, at which Inventory may be consigned.

     

    (c) Control
      Letters from (i) all issuers of uncertificated securities and financial assets
      held by any US Credit Party (including without limitation account 222378738
      with
      Bank of America relating to money market fund investments), (ii) all securities
      intermediaries with respect to all securities accounts and securities
      entitlements of any
      US
      Credit Party,
      and
      (iii) all futures commission agents and clearing houses with respect to all
      commodities contracts and commodities accounts held by any US Credit
      Party.

     

    G. Intellectual
      Property Security Agreement.
      Duly
      executed originals of the Amended and Restated Intellectual Property Security
      Agreement and signed by each US Credit Party, all in form and substance
      satisfactory to Agent, together with all instruments, documents and agreements
      executed pursuant thereto, including such documents duly executed by each US
      Credit Party (including financing statements under the Code and other applicable
      documents under the laws of any jurisdiction with respect to the perfection
      of
      Liens, including foreign patent, trademark and copyright filings) as Agent
      may
      request in order to perfect its security interests in the Intellectual
      Property.

     

    H. Intentionally
      Omitted.

     

    I. Initial
      Notice of Revolving Credit Advance.
      Duly
      executed originals of a Notice of Revolving Credit Advance, dated the Closing
      Date, with respect to the initial Revolving Credit Advance to be requested
      by
      Borrower on the Closing Date.

     

    J. Letter
      of Direction.
      Duly
      executed originals of a letter of direction from Borrower addressed to Agent,
      on
      behalf of itself and Lenders, with respect to the disbursement on the Closing
      Date of the proceeds of the Term Loan and the initial Revolving Credit
      Advance.

     

    K. Cash
      Management System; Blocked Account Agreements.
      Evidence satisfactory to Agent that, as of the Closing Date, Cash Management
      Systems complying with Annex
      C
      to the
      Agreement have been established and are currently being maintained in the manner
      set forth in such Annex
      C,
      together with copies of duly executed tri-party blocked account and lock box
      agreements, reasonably satisfactory to Agent, with the banks as required by
      Annex
      C.

     

    L. Waivers.
      Agent,
      on behalf of Lenders, shall have received landlord waivers and consents, bailee
      letters and mortgagee agreements in form and substance satisfactory to Agent,
      in
      each case as required pursuant to Section
      5.9.

     

    M. Insurance.
      Satisfactory evidence that the insurance policies required by Section
      5.4
      are in
      full force and effect, together with the endorsements, certifications and
      reports required by Section
      5.4.
      Satisfactory evidence that the key man life insurance policy and related
      assignment required by Section
      5.10
      are in
      full force and effect.

     

    N. Charter
      and Good Standing.
      For
      each US Credit Party, such Person’s (a) charter and all amendments thereto, (b)
      good standing certificates (including verification of tax status) in its state
      of incorporation and (c) good standing certificates (including verification
      of
      tax status) and certificates of qualification to conduct business in each
      jurisdiction where its ownership or lease of property or the conduct of its
      business requires such qualification, each dated a recent date prior to the
      Closing Date and certified by the applicable Secretary of State or other
      authorized Governmental Authority.

     

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

     

    O. Bylaws
      and Resolutions.
      For
      each US Credit Party, (a) such Person’s bylaws, together with all amendments
      thereto and (b) resolutions of such Person’s Board of Directors, approving and
      authorizing the execution, delivery and performance of the Loan Documents to
      which such Person is a party and the transactions to be consummated in
      connection therewith, each certified as of the Closing Date by such Person’s
      corporate secretary or an assistant secretary as being in full force and effect
      without any modification or amendment.

     

    P. Incumbency
      Certificates.
      For
      each US Credit Party, signature and incumbency certificates of the officers
      of
      each such Person executing any of the Loan Documents, certified as of the
      Closing Date by such Person’s corporate secretary or an assistant secretary as
      being true, accurate, correct and complete.

     

    Q. Opinions
      of Counsel.
      Duly
      executed originals of opinions of (a) McCarter & English, LLP, counsel for
      the Credit Parties, (b) Luper Neidenthal & Logan, Ohio counsel for the
      Credit Parties, and (c) Gadsby Hannah LLP, Massachusetts counsel for the Credit
      Parties, together with any other local or foreign counsel opinions reasonably
      requested by Agent, each in form and substance reasonably satisfactory to Agent
      and its counsel, dated the Closing Date, and each accompanied by a letter
      addressed to such counsel from the Credit Parties, authorizing and directing
      such counsel to address its opinion to Agent, on behalf of Lenders, and to
      include in such opinion an express statement to the effect that Agent and
      Lenders are authorized to rely on such opinion.

     

    R. Accountants’
      Letters.
      A
      letter from Borrower to its independent auditors authorizing its independent
      certified public accountants to communicate with Agent and Lenders in accordance
      with Section
      4.2.

     

    S. Appointment
      of Agent for Service.
      An
      appointment of McCarter & English, LLP as each US Credit Party’s agent for
      service of process.

     

    T. Solvency
      Certificate.
      Agent
      shall have received duly executed originals of a solvency certificate of
      Borrower executed on behalf of Borrower by its Chief Executive Officer, dated
      the Closing Date, satisfactory in form and substance to Agent.

     

    T. Fee
      Letter.
      Duly
      executed originals of the GE Capital Fee Letter.

     

    U. Officer’s
      Certificate.
      Agent
      shall have received duly executed originals of a certificate of the Chief
      Executive Officer of Borrower, dated the Closing Date, stating that, since
      March
      31, 2005 (a) no event or condition has occurred or is existing which could
      reasonably be expected to have a Material Adverse Effect; (b) there has been
      no
      material adverse change in the industry in which Borrower operates; (c) no
      Litigation has been commenced which, if successful, would have a Material
      Adverse Effect or could challenge any of the transactions contemplated by the
      Agreement and the other Loan Documents; (d) there have been no Restricted
      Payments made by any Credit Party; and (e) there has been no material increase
      in liabilities, liquidated or contingent, and no material decrease in assets
      of
      Borrower or any of its Subsidiaries.

     

    
      
        
        

      

      
        D-3

        
          

        

      

      
        
        

      

    

     

    V. Subordination
      and Intercreditor Agreements.
      Agent
      and Lenders shall have received any and all subordination and/or intercreditor
      agreements, all in form and substance reasonably satisfactory to Agent, in
      its
      sole discretion, as Agent shall have deemed necessary or appropriate with
      respect to any Indebtedness of any Credit Party.

     

    W. Environmental
      Reports.
      Agent
      shall have received Phase I Environmental Site Assessment Reports, consistent
      with American Society of Testing and Materials (ASTM) Standard E 1527-94, and
      applicable state requirements, on such Real Estate as Agent may require, dated
      no more than 6 months prior to the Closing Date, prepared by environmental
      engineers reasonably satisfactory to Agent, all in form and substance reasonably
      satisfactory to Agent, in its sole discretion; and Agent shall have further
      received such environmental review and audit reports, including Phase II
      reports, with respect to the Real Estate of any Credit Party as Agent shall
      have
      requested, and Agent shall be satisfied, in its sole discretion, with the
      contents of all such environmental reports. Agent shall have received letters
      executed by the environmental firms preparing such environmental reports, in
      form and substance reasonably satisfactory to Agent, authorizing Agent and
      Lenders to rely on such reports.

     

    X. Audited
      Financials; Financial Condition.
      Agent
      shall have received the Financial Statements, Projections and other materials
      set forth in Section
      3.4,
      certified by Borrower’s Chief Executive Officer, in each case in form and
      substance satisfactory to Agent, and Agent shall be satisfied, in its sole
      discretion, with all of the foregoing. Agent shall have further received a
      certificate of the Chief Executive Officer of Borrower, based on such Pro Forma
      and Projections, to the effect that the Projections are based upon estimates
      and
      assumptions stated therein, all of which Borrower believes to be reasonable
      and
      fair in light of current conditions and current facts known to Borrower and,
      as
      of the Closing Date, reflect Borrower’s good faith and reasonable estimates of
      its future financial performance and of the other information projected therein
      for the period set forth therein.

     

    Y. Assignment
      of Representations, Warranties, Covenants, Indemnities and
      Rights.
      (i)
      Agent shall have received a duly executed copy of an Assignment of
      Representations, Warranties, Covenants, Indemnities and Rights in respect of
      Borrower’s rights under the BetaTHERM Acquisition Agreement, which assignment
      shall be expressly permitted under the BetaTHERM Acquisition Agreement or shall
      have been consented to by the BetaTHERM Sellers in writing and (ii) Agent shall
      have received a duly executed copy of an Assignment of Representations,
      Warranties, Covenants, Indemnities and Rights in respect of Borrower’s rights
      under the YSIS Acquisition Agreement, which assignment shall be expressly
      permitted under the YSIS Acquisition Agreement or shall have been consented
      to
      by the YSIS Seller in writing.

     

    Z. YSIS
      Acquisition Opinions.
      Duly
      executed original opinion letters, dated the Closing Date, delivered in
      connection with the YSIS Acquisition and the YSIS Acquisition Agreement that
      provide Agent and Lenders may rely on such opinions.

     

    
      
        
        

      

      
        D-4

        
          

        

      

      
        
        

      

    

     

    AA. YSIS
      Termination and Release.
      Copies
      of a duly executed termination and release, in form and substance reasonably
      satisfactory to Agent, by and between (i) The Huntington National Bank
      (“HNB”)
      and
      YSIS evidencing termination of the Continuing Unlimited Guaranty dated as of
      August 11, 2005 and any other obligations of YSIS to HNB, (ii) U.S. Bank
      National Association (“USBank”)
      and
      YSIS evidencing termination of the Guaranty Agreement dated as of December
      15,
      1999 and any other obligations of YSIS to USBank, and (iii) US Bank and YSIS
      evidencing termination of the Guaranty Agreement dated as of July 18, 2003
      and
      any other obligations of YSIS to USBank, in each case, together with UCC 3
      or
      other appropriate termination statements, in form and substance satisfactory
      to
      Agent, manually signed by the HNB or USBank, as applicable, releasing all Liens
      upon any of the personal property of YSIS. 

     

    BB. Payoff
      Letter; Terminations.
      Copies
      of a duly executed payoff letter, in form and substance reasonably satisfactory
      to Agent, by and between all parties to the Ulster Bank Ireland Limited and
      Ulster Bank Limited loan documents evidencing repayment in full of all
      Indebtedness of BetaTHERM
      Group and its Subsidiaries incurred
      under the Facilities Agreement dated as of February 15, 2001 among Ulster Bank
      Ireland Limited and Ulster Bank Limited, BetaTHERM Group and its Subsidiaries
      signatory thereto, as amended, together with UCC 3 or other appropriate
      termination statements, in form and substance satisfactory to Agent, manually
      signed by Ulster Bank Ireland Limited and Ulster Bank Limited releasing all
      Liens of Ulster Bank Ireland Limited and Ulster Bank Limited upon any of the
      personal property of BetaTHERM Group and its Subsidiaries.

     

    CC. Other
      Documents.
      Such
      other certificates, documents and agreements respecting any US Credit Party
      as
      Agent may, in its sole discretion, request.

     

    
      
        
        

      

      
        D-5

        
          

        

      

      
        
        

      

    

    ANNEX
      E (Section 4.1(a))

     

    to

     

    CREDIT
      AGREEMENT

     

    FINANCIAL
      STATEMENTS AND PROJECTIONS -- REPORTING

     

    Borrower
      shall deliver or cause to be delivered to Agent or to Agent and Lenders, as
      indicated, the following:

     

    (i) Monthly
      Financials.
      To
      Agent and Lenders, within 30 days after the end of each Fiscal Month, financial
      information regarding Borrower and its Subsidiaries, certified by the Chief
      Financial Officer of Borrower, consisting of (i) consolidated
      and consolidating unaudited balance sheets of Borrower and its Subsidiaries
      as
      of the close of such Fiscal Month and the related statements of income and
      cash
      flows for that portion of the Fiscal Year ending as of the close of such Fiscal
      Month; (ii)
      consolidated and consolidating unaudited statements of income and cash flows
      of
      Borrower and its Subsidiaries for such Fiscal Month, setting forth in
      comparative form the figures for the corresponding period in the prior year
      and
      the figures contained in the Projections for such Fiscal Year, all prepared
      in
      accordance with GAAP (subject to normal year-end adjustments); and (iii) a
      summary of the outstanding balance of all Intercompany Notes as of the last
      day
      of that Fiscal Month. Such financial information shall be accompanied by (A)
      a
statement
      in reasonable detail (each, a “Compliance
      Certificate”)
      showing the calculations used in determining compliance with each of
      the
      Financial Covenants that is tested on a monthly basis, and (B) the
      certification of the Chief Financial Officer of Borrower that (i) such financial
      information presents fairly in accordance with GAAP (subject to normal year-end
      adjustments) the financial position and results of operations of Borrower and
      its Subsidiaries, on a consolidated and consolidating basis, in each case as
      at
      the end of such Fiscal Month and for that portion of the Fiscal Year then ended
      and (ii) any other information presented is true, correct and complete in all
      material respects and that there was no Default or Event of Default in existence
      as of such time or, if a Default or Event of Default shall have occurred and
      be
      continuing, describing the nature thereof and all efforts undertaken to cure
      such Default or Event of Default.

     

    (j) Quarterly
      Financials.
      To
      Agent and Lenders, within 45 days after the end of each Fiscal Quarter,
      consolidated and consolidating financial information regarding Borrower and
      its
      Subsidiaries, certified by the Chief Financial Officer of Borrower, including
      (i) consolidated and consolidating unaudited balance sheets of Borrower and
      its
      Subsidiaries as of the close of such Fiscal Quarter and the related statements
      of income and cash flow for that portion of the Fiscal Year ending as of the
      close of such Fiscal Quarter; and (ii) consolidated
      and consolidating unaudited statements of income and cash flows of Borrower
      and
      its Subsidiaries for such Fiscal Quarter, in each case setting forth in
      comparative form the figures for the corresponding period in the prior year
      and
      the figures contained in the Projections for such Fiscal Year, all prepared
      in
      accordance with GAAP (subject to normal year-end adjustments).
      Such
      financial information shall be accompanied by (A) a Compliance Certificate
      showing the calculations used in determining compliance with each of the
      Financial Covenants that is tested on a quarterly basis and (B) the
      certification of the Chief Financial Officer of Borrower that (i) such financial
      information presents fairly in accordance with GAAP (subject to normal year-end
      adjustments) the financial position, results of operations and statements of
      cash flows of Borrower and its Subsidiaries, on both a consolidated and
      consolidating basis, as at the end of such Fiscal Quarter and for that portion
      of the Fiscal Year then ended, (ii) any other information presented is true,
      correct and complete in all material respects and that there was no Default
      or
      Event of Default in existence as of such time or, if a Default or Event of
      Default has occurred and is continuing, describing the nature thereof and all
      efforts undertaken to cure such Default or Event of Default. In addition,
      Borrower shall deliver to Agent and Lenders, within 45 days after the end of
      each Fiscal Quarter, a management discussion and analysis that includes a
      comparison to budget for that Fiscal Quarter and a comparison of performance
      for
      that Fiscal Quarter to the corresponding period in the prior year.

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

     

    (k) Operating
      Plan.
      To
      Agent and Lenders, as soon as available, but not later than 60 days after to
      the
      end of each Fiscal Year, an annual operating plan for Borrower, approved by
      the
      Board of Directors of Borrower, for the following Fiscal Year, which (i)
      includes a statement of all of the material assumptions on which such plan
      is
      based, (ii) includes monthly balance sheets and a monthly budget for the
      following year and (iii) integrates sales, gross profits, operating
      expenses, operating profit, cash flow projections and Borrowing Availability
      projections, all prepared on the same basis and in similar detail as that on
      which operating results are reported (and in the case of cash flow projections,
      representing management’s good faith estimates of future financial performance
      based on historical performance), and including plans for personnel, Capital
      Expenditures and facilities.

     

    (l) Annual
      Audited Financials.
      To
      Agent and Lenders, within 90 days after the end of each Fiscal Year, audited
      Financial Statements for Borrower and its Subsidiaries on a consolidated and
      (unaudited) consolidating basis, consisting of balance sheets and statements
      of
      income and retained earnings and cash flows, setting forth in comparative form
      in each case the figures for the previous Fiscal Year, which Financial
      Statements shall be prepared in accordance with GAAP and certified without
      qualification, by an independent
      certified public accounting
      firm of national standing or otherwise acceptable to Agent. Such Financial
      Statements shall be accompanied by (i) a statement prepared in reasonable detail
      showing the calculations used in determining compliance with each of the
      Financial Covenants, (ii) the annual letters to such accountants in connection
      with their audit examination detailing contingent liabilities and material
      litigation matters, and (iii) the certification of the Chief Executive Officer
      or Chief Financial Officer of Borrower that all such Financial Statements
      present fairly in accordance with GAAP the financial position, results of
      operations and statements of cash flows of Borrower and its Subsidiaries on
      a
      consolidated and consolidating basis, as at the end of such Fiscal Year and
      for
      the period then ended, and that there was no Default or Event of Default in
      existence as of such time or, if a Default or Event of Default has occurred
      and
      is continuing, describing the nature thereof and all efforts undertaken to
      cure
      such Default or Event of Default. The audited Financial Statements for the
      Fiscal Year ended March
      31,
      2006 shall
      be
      accompanied by a statement from the applicable independent certified public
      accountants that Borrower and its Subsidiaries on a consolidated basis shall
      have had, at the end of the Fiscal Year ended March 31, 2006, EBITDA (excluding
      EBITDA attributable to the consumer products business) for the twelve (12)
      month
      period then ended of not less than $21,000,000.

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

     

    (m) Management
      Letters.
      To
      Agent and Lenders, within 5 Business Days after receipt thereof by any Credit
      Party, copies of all management letters, exception reports or similar letters
      or
      reports received by such Credit Party from its independent certified public
      accountants.

     

    (n) Intellectual
      Property.
      To
      Agent, at the time of delivery of each of the quarterly Financial Statements
      delivered pursuant to paragraph (b) of this Annex
      E,
      a list
      of any applications for the registration of any Patent, Trademark or Copyright
      filed by any Credit Party with the United States Patent and Trademark Office,
      the United States Copyright Office or any similar office or agency in the prior
      Fiscal Quarter.

     

    (o) Default
      Notices.
      To
      Agent and Lenders, as soon as practicable, and in any event within 5 Business
      Days after an executive officer of Borrower has actual knowledge of the
      existence of any Default, Event of Default or other event that has had a
      Material Adverse Effect, telephonic or telecopied notice specifying the nature
      of such Default or Event of Default or other event, including the anticipated
      effect thereof, which notice, if given telephonically, shall be promptly
      confirmed in writing on the next Business Day.

     

    (p) SEC
      Filings and Press Releases.
      To
      Agent and Lenders, promptly upon their becoming available, copies of: (i) all
      Financial Statements, reports, notices and proxy statements made publicly
      available by Borrower to its security holders; (ii) all regular and periodic
      reports and all registration statements and prospectuses, if any, filed by
      Borrower with any securities exchange or with the Securities and Exchange
      Commission or any governmental or private regulatory authority; and (iii) all
      press releases and other statements made available by any Credit Party to the
      public concerning material changes or developments in the business of any such
      Person.

     

    (q) Subordinated
      Debt and Equity Notices.
      To
      Agent, as soon as practicable, copies of all material written notices given
      or
      received by any Credit Party with respect to any Subordinated Debt or Stock
      of
      such Person, and, within 2 Business Days after any Credit Party obtains
      knowledge of any matured or unmatured event of default with respect to any
      Subordinated Debt, notice of such event of default.

     

    (r) Supplemental
      Schedules.
      To
      Agent, supplemental disclosures, if any, required by Section
      5.6.

     

    (s) Litigation.
      To
      Agent in writing, promptly upon learning thereof, notice of any Litigation
      commenced or threatened against any Credit Party that (i) seeks damages in
      excess of $100,000, (ii) seeks injunctive relief, (iii) is asserted or
      instituted against any Plan, its fiduciaries or its assets or against any Credit
      Party or ERISA Affiliate in connection with any Plan, (iv) alleges criminal
      misconduct by any Credit Party, (v) alleges the violation of any law regarding,
      or seeks remedies in connection with, any Environmental Liabilities; or (vi)
      involves any product recall.

     

    (t) Insurance
      Notices.
      To
      Agent, disclosure of losses or casualties required by Section
      5.4.

     

    (u) Lease
      Default Notices.
      To
      Agent, within 2 Business Days after receipt thereof, copies of (i) any and
      all
      default notices received under or with respect to any leased location or public
      warehouse where Collateral is located, and (ii) such other notices or documents
      as Agent may reasonably request.

     

    
      
        
        

      

      
        E-3

        
          

        

      

      
        
        

      

    

     

    (v) Collateral
      Locations.
      To
      Agent, a summary of Collateral by location and type, accompanied by such
      supporting documentation, as Agent shall, from time to time, reasonably
      request.

     

    (w) Other
      Documents.
      To
      Agent and Lenders, such other financial and other information respecting any
      Credit Party’s business or financial condition or the Collateral or Obligations
      as Agent or any Lender shall, from time to time, reasonably
      request.

     

    
      
        
        

      

      
        E-4

        
          

        

      

      
        
        

      

    

    ANNEX
      F (EBITDA)

     

    to

     

    CREDIT
      AGREEMENT

     

    HISTORICAL
      EBITDA AND FIXED CHARGES FOR ACQUIRED COMPANIES

     

    PART
      A

     

    
      	
              EBITDA
                Contribution From Acquisitions (ProForma)

            
	
               

              FISCAL
                MONTH ENDING

            	
               

              BetaTHERM

            	
               

              YSIS

            	
               

              TOTAL

            
	
              April
                30, 2005

            	
              $439,000

            	
              $285,000

            	
              $724,000

            
	
              May
                31, 2005

            	
              $273,000

            	
              $248,000

            	
              $521,000

            
	
              June
                30, 2005

            	
              $506,000

            	
              $336,000

            	
              $842,000

            
	
              July
                31, 2005

            	
              $357,000

            	
              $115,000

            	
              $472,000

            
	
              August
                31, 2005

            	
              $355,000

            	
              $210,000

            	
              $565,000

            
	
              September
                30, 2005

            	
              $507,000

            	
              $95,000

            	
              $602,000

            
	
              October
                31, 2005

            	
              $240,000

            	
              $32,000

            	
              $272,000

            
	
              November
                30, 2005

            	
              $478,000

            	
              $189,000

            	
              $667,000

            
	
              December
                31, 2005

            	
              $475,000

            	
              $159,000

            	
              $634,000

            
	
              January
                31, 2006

            	
              $614,000

            	
              $89,000

            	
              $703,000

            
	
              February
                28, 2006

            	
              $570,000

            	
              $207,000

            	
              $777,000

            
	
              Estimated
                

              March
                31, 2006

            	
               

              $434,000

            	
               

              $250,000

            	
               

              $684,000

            

    

    

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

     

    PART
      B

     

    
      	
              Fixed
                Charge Contribution From Acquisitions
                (ProForma)

            
	
               

              FISCAL
                MONTH ENDING

            	
               

              BetaTHERM

            	
               

              YSIS

            	
               

              TOTAL

            
	
              April
                30, 2005

            	
              $387,000

            	
              $15,000

            	
              $402,000

            
	
              May
                31, 2005

            	
              $250,000

            	
              $15,000

            	
              $265,000

            
	
              June
                30, 2005

            	
              $19,000

            	
              $17,000

            	
              $36,000

            
	
              July
                31, 2005

            	
              $408,000

            	
              $15,000

            	
              $423,000

            
	
              August
                31, 2005

            	
              $16,000

            	
              $17,000

            	
              $33,000

            
	
              September
                30, 2005

            	
              $370,000

            	
              $15,000

            	
              $385,000

            
	
              October
                31, 2005

            	
              $434,000

            	
              $18,000

            	
              $452,000

            
	
              November
                30, 2005

            	
              $18,000

            	
              $18,000

            	
              $36,000

            
	
              December
                31, 2005

            	
              $206,000

            	
              $18,000

            	
              $224,000

            
	
              January
                31, 2006

            	
              $406,000

            	
              $18,000

            	
              $424,000

            
	
              February
                28, 2006

            	
              $19,000

            	
              $18,000

            	
              $37,000

            
	
              Estimated
                

              March
                31, 2006

            	
               

              $172,000

            	
               

              $18,000

            	
               

              $190,000

            

    

    

    
      
        
        

      

      
        F-2

        
          

        

      

      
        
        

      

    

    ANNEX
      G (Section 6.10)

     

    to

     

    CREDIT
      AGREEMENT

     

    FINANCIAL
      COVENANTS

     

    Borrower
      shall not breach or fail to comply with any of the following financial
      covenants, each of which shall be calculated in accordance with GAAP
      consistently applied:

     

    (a) Maximum
      Capital Expenditures.
      Borrower
      and it Subsidiaries on a consolidated basis shall not make Capital Expenditures
      during any Fiscal Year which exceed 30% (or 35% with respect to the Fiscal
      Year
      ending March 31, 2007) of the EBITDA of Borrower and its Subsidiaries on a
      consolidated basis for such Fiscal Year; provided
      that for
      the two (2) Fiscal Years ended March 31, 2008, Borrower may exclude up to
      $10,000,000, in the aggregate for such two Fiscal Year period, in Capital
      Expenditures related to
      the
      construction of a new manufacturing facility in ShenZhen, China.

     

    (b) Minimum
      Fixed Charge Coverage Ratio.
      

     

    (i) Borrower
      and its Subsidiaries shall have on a consolidated basis at the end of each
      Fiscal Month, a Fixed Charge Coverage Ratio for the 12-month period then ended
      of not less than 1.20 to 1.00; and

     

    (ii) Borrower
      and its Subsidiaries shall have on a consolidated basis at the end of each
      Fiscal Month until and including February 28, 2007, a Fixed Charge Coverage
      Ratio for the 12-month period then ended of not less than 1.05 to 1.00;
provided
      that
      solely for purposes of this clause
      (ii),
      (x)
      EBITDA shall be calculated without giving effect to Part
      A
      of
Annex
      F,
      (y)
      Fixed Charges shall be calculated without giving effect to the portion of Fixed
      Charges attributable to the Acquisitions as set forth on Part
      B
      of
Annex
      F
      for
      periods prior to the closing date of the applicable acquisition, and (z) the
      Fixed Charge Coverage Ratio calculation shall be made without giving effect
      to
      Capital Expenditures related to the construction of a new manufacturing facility
      in ShenZhen, China.

     

    (c) Minimum
      EBITDA.
      Borrower
      and its Subsidiaries on a consolidated basis shall have, at the end of each
      Fiscal Month, EBITDA for the 12-month period then ended of not less than
      $25,000,000.
      

     

    (d) Maximum
      Total Leverage Ratio.
      Borrower and its Subsidiaries on a consolidated basis shall have, at the end
      of
      each Fiscal Month, a Total Leverage Ratio as of the last day of such Fiscal
      Quarter of not more than 3.50 to 1.00.

     

    (e) Maximum
      Senior Leverage Ratio.
      Borrower and its Subsidiaries on a consolidated basis shall have, at the end
      of
      each Fiscal Month, a Senior Leverage Ratio as of the last day of such Fiscal
      Quarter of not more than 3.00 to 1.00.

     

    
      
        
        

      

      
        G-1

        
          

        

      

      
        
        

      

    

     

    (f) Minimum
      Earnout Availability.
      After
      December 17, 2006, if at time the Total Leverage Ratio as of the end of any
      Fiscal Quarter is greater than 2.0 to 1.00 (commencing with the Fiscal Quarter
      ending December 31, 2006) and any Earnouts are outstanding, Borrower and its
      Subsidiaries on a consolidated basis shall have, at the end of such Fiscal
      Quarter, Earnout Availability of not less than the sum of (i) the projected
      amount of all remaining payments in respect of Earnouts of Borrower and its
      Subsidiaries as of the end of such Fiscal Quarter (as reasonably determined
      by
      Agent), and (ii) $4,000,000.

     

    For
      purpose of this paragraph (f) the following terms shall be defined as
      follows:

     

    “Earnout
      Availability”
shall
      mean, as of any date, the sum of: (i) cash and Cash Equivalents on the
      consolidated balance sheet of Borrower and its Subsidiaries as of such date,
      (ii) Borrowing Availability as of such date, and (iii) Projected Excess Cash
      as
      of such date.

     

    “Projected
      Excess Cash”
shall
      mean, as of the end of any Fiscal Quarter, an amount equal to:

     

    
      	 	
              (i)

            	
              EBITDA
                of Borrower and its Subsidiaries for the 12-month period then ended,
                divided by 4 and then multiplied by the number of quarters remaining
                after
                such Fiscal Quarter and until and including the Fiscal Quarter in
                which
                all then outstanding Earnouts of Borrower and its Subsidiaries will
                have
                been paid in full in accordance with the terms thereof occurs, multiplied
                by

            

    

     

    
      	 	
              (ii)

            	
              the
                applicable Adjustment Factor for such Fiscal Quarter,
                less

            

    

     

    
      	 	
              (iii)

            	
              the
                sum of the Fixed Charges (excluding the Earnouts) and Capital Expenditures
                projected to be incurred or paid by Borrower and its Subsidiaries
                after
                such Fiscal Quarter and until and including the date on which all
                then
                outstanding Earnouts of Borrower and its Subsidiaries will have been
                paid
                in full in accordance with the terms thereof
                .

            

    

     

    “Adjustment
      Factor”
shall
      mean, (i) for the Fiscal Quarter ending December 31, 2006, 80%, and (ii) for
      each Fiscal Quarter thereafter, the Adjustment Factor for the immediately
      preceding Fiscal Quarter plus 3%; provided that in no event shall the Adjustment
      Factor exceed 100%.

     

    
      
        
        

      

      
        G-2

        
          

        

      

      
        
        

      

    

     

    Unless
      otherwise specifically provided herein, any accounting term used in the
      Agreement shall have the meaning customarily given such term in accordance
      with
      GAAP, and all financial computations hereunder shall be computed in accordance
      with GAAP consistently applied. That certain items or computations are
      explicitly modified by the phrase “in accordance with GAAP” shall in no way be
      construed to limit the foregoing. If any “Accounting Changes” (as defined below)
      occur and such changes result in a change in the calculation of the financial
      covenants, standards or terms used in the Agreement or any other Loan Document,
      then Borrower, Agent and Lenders agree to enter into negotiations in order
      to
      amend such provisions of the Agreement so as to equitably reflect such
      Accounting Changes with the desired result that the criteria for evaluating
      Borrower’s and its Subsidiaries’ financial condition shall be the same after
      such Accounting Changes as if such Accounting Changes had not been made;
provided,
      however, that the agreement of Requisite Lenders to any required amendments
      of
      such provisions shall be sufficient to bind all Lenders. “Accounting
      Changes”
means
      (i) changes in accounting principles required by the promulgation of any rule,
      regulation, pronouncement or opinion by the Financial Accounting Standards
      Board
      of the American Institute of Certified Public Accountants (or successor thereto
      or any agency with similar functions), (ii) changes in accounting principles
      concurred in by Borrower’s certified public accountants; (iii) purchase
      accounting adjustments under A.P.B. 16 or 17 and EITF 88-16, and the application
      of the accounting principles set forth in FASB 109, including the establishment
      of reserves pursuant thereto and any subsequent reversal (in whole or in part)
      of such reserves; and (iv) the reversal of any reserves established as a
      result of purchase accounting adjustments. All such adjustments resulting from
      expenditures made subsequent to the Closing Date (including capitalization
      of
      costs and expenses or payment of pre-Closing Date liabilities) shall be treated
      as expenses in the period the expenditures are made and deducted as part of
      the
      calculation of EBITDA in such period. If Agent, Borrower and Requisite Lenders
      agree upon the required amendments, then after appropriate amendments have
      been
      executed and the underlying Accounting Change with respect thereto has been
      implemented, any reference to GAAP contained in the Agreement or in any other
      Loan Document shall, only to the extent of such Accounting Change, refer to
      GAAP, consistently applied after giving effect to the implementation of such
      Accounting Change. If Agent, Borrower and Requisite Lenders cannot agree upon
      the required amendments within 30 days following the date of implementation
      of
      any Accounting Change, then all Financial Statements delivered and all
      calculations of financial covenants and other standards and terms in accordance
      with the Agreement and the other Loan Documents shall be prepared, delivered
      and
      made without regard to the underlying Accounting Change. For purposes of
Section
      8.1,
      a
      breach of a Financial Covenant contained in this Annex G
      shall be
      deemed to have occurred as of any date of determination by Agent or as of the
      last day of any specified measurement period, regardless of when the Financial
      Statements reflecting such breach are delivered to Agent.

     

    
      
        
        

      

      
        G-3

        
          

        

      

      
        
        

      

    

    ANNEX
      H (Section 9.9(a))

     

    to

     

    CREDIT
      AGREEMENT

     

    LENDERS’
      WIRE TRANSFER INFORMATION

     

    
      	
              Name:

            	 	
              General
                Electric Capital Corporation

            
	
              Bank:

            	 	
              Deutsche
                Bank Trust Company Americas

            
	 	 	
              New
                York, New York

            
	
              ABA
                #:

            	 	
              021001033

            
	
              Account
                #:

            	 	
              50-270-797

            
	
              Account
                Name:

            	 	
              GECC/CAF
                Depository

            
	
              Reference:

            	 	
              Measurement
                Specialties, Inc.

            
	 	 	 
	
              Name:

            	 	
              Wachovia
                Bank, National Association

            
	
              Bank:

            	 	
              First
                Union

            
	 	 	
              Charlotte,
                North Carolina

            
	
              ABA
                #:

            	 	
              053-000-219

            
	
              Account
                #:

            	 	
              04659360006116

            
	
              Attn:

            	 	
              Credit
                Derivatives

            
	
              Reference:

            	 	
              Measurement
                Specialties, Inc.

            
	
              Name:

            	 	
              JPMorgan
                Chase Bank, N.A.

            
	
              Bank:

            	 	
              JPMorgan
                Chase Bank, N.A.

            
	
              ABA
                #:

            	 	
              021000021

            
	
              Credit
                To:

            	 	
              Commercial
                Loan Department

            
	
              Account
                #:

            	 	
              323522211

            
	
              F/F/C:

            	 	
              Measurement
                Specialties, Inc. - Loan #
                0002-2000001612

            

    

    

    
      
        
        

      

      
        H-1

        
          

        

      

      
        
        

      

    

    ANNEX
      I (Section 11.10)

     

    to

     

    CREDIT
      AGREEMENT

     

    NOTICE
      ADDRESSES

     

    
      	
              (A)

            	
              If
                to Agent or GE Capital, at

            

    

    General
      Electric Capital Corporation

    201
      Merritt Seven, 3rd Floor

    Norwalk,
      CT 06854

    Attention:
      Measurement Specialties, Inc., Account Manager

    Telecopier
      No.: 203-956-4238

    Telephone
      No.: 203-956-4103

     

    and,
      with
      respect to any Default or Event of Default, to:

     

    Paul,
      Hastings, Janofsky & Walker LLP

    1055
      Washington Boulevard

    Stamford,
      Connecticut 06901

    Attention:
      Mario J. Ippolito

    Telecopier
      No.: 203-674-7620

    Telephone
      No.: 203-961-7420

     

    and

     

    General
      Electric Capital Corporation

    401
      Merritt Seven, 2nd Floor

    Norwalk,
      Connecticut 06856

    Attention:
      Corporate Counsel - GE Commercial & Industrial Finance, Inc.

    Telecopier
      No.: 203-229-1991

    Telephone
      No.: 203-229-1427

     

    
      	
              (B)

            	
              If
                to any Credit Party, at

            

    

     

    c/o
      Measurement Specialties, Inc.

    1000
      Lucas Way

    Hampton,
      Virginia 23666

    Attention:
      Frank Guidone, Chief Executive Officer

    Telecopier
      No.: (575) 766-4347

    Telephone
      No.: (757) 766-1500

     

    
      
        
        

      

      
        I-1

        
          

        

      

      
        
        

      

    

     

    With
      a
      copy to:

    McCarter
      & English, LLP

    Four
      Gateway Center

    100
      Mulberry street

    P.O.
      Box
      652

    Newark,
      New Jersey 0710100652

    Attention:
      Kenneth E. Thompson, Esq.

    Telecopier
      No.: 973-624-7070

    Telephone
      No.: 973-622-4444

     

    
      
        
        

      

      
        I-2

        
          

        

      

      
        
        

      

    

    

     

    ANNEX
      J (from Annex A - Commitments definition)

     

    to

     

    CREDIT
      AGREEMENT

     

    

     

    
      	
              Lender

            	 	
              Revolving
                Loan Commitment

            	 	
              Term
                Loan Commitment

            	 
	
              General
                Electric Capital Corporation

            	 	
              $

            	
              25,666,666.67

            	 	
              $

            	
              9,333,333.33

            	 
	
              Wachovia
                Bank, National Association

            	 	
              $

            	
              7,666,666.67

            	 	
              $

            	
              0

            	 
	
              CoLTS
                2005-1 LTD.

            	 	
              $

            	
              3,333,333.33

            	 	
              $

            	
              4,000,000.00

            	 
	
              JPMorgan
                Chase Bank, N.A.

            	 	
              $

            	
              18,333,333.33

            	 	
              $

            	
              6,666,666.67

            	 
	
              Total

            	 	
              $

            	
              55,000,000.00

            	 	
              $

            	
              20,000,000.00

            	 

    

    

     

    
      
        
        

      

      
        J-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1.1

     

    AGENT’S
      REPRESENTATIVES

     

    General
      Electric Capital Corporation

    201
      Merritt Seven, 3rd Floor

    Norwalk,
      CT 06854

    Attention:
      Measurement Specialties, Inc., Account Manager

    Telecopier
      No.: 203-956-4238

    Telephone
      No.: 203-956-4103

     

    Measurement
      Specialties, Inc., Portfolio Analyst

    GE
      Commercial Finance

    500
      West
      Monroe

    Chicago,
      IL 60661-3671

    Telephone
      - 312-441-6715

    Telecopier
      - 312-441-6969

     

    
      
        
        

      

      
        S-1.1

        
          

        

      

      
        
        

      

    

     

    

      TABLE
        OF CONTENTS

    

    

      Page

    

     

    
      	
              1. 
                AMOUNT
                AND TERMS OF CREDIT

            	 	 	
              2

            	 
	
              1.1

            	 	 	
              Credit
                Facilities

            	 	 	
              2

            	 
	
              1.2

            	 	 	
              Letters
                of Credit

            	 	 	
              4

            	 
	
              1.3

            	 	 	
              Prepayments

            	 	 	
              5

            	 
	
              1.4

            	 	 	
              Use
                of Proceeds

            	 	 	
              7

            	 
	
              1.5

            	 	 	
              Interest
                and Applicable Margins

            	 	 	
              7

            	 
	
              1.6

            	 	 	
              [Intentionally
                Omitted]

            	
               

            	 	
              10

            	 
	
              1.7

            	 	 	
              [Intentionally
                Omitted]

            	
               

            	 	
              10

            	 
	
              1.8

            	 	 	
              Cash
                Management Systems

            	 	 	
              10

            	 
	
              1.9

            	 	 	
              Fees

            	 	 	
              10

            	 
	
              1.10

            	 	 	
              Receipt
                of Payments

            	 	 	
              10

            	 
	
              1.11

            	 	 	
              Application
                and Allocation of Payments

            	 	 	
              11

            	 
	
              1.12

            	 	 	
              Loan
                Account and Accounting

            	 	 	
              11

            	 
	
              1.13

            	 	 	
              Indemnity

            	 	 	
              12

            	 
	
              1.14

            	 	 	
              Access

            	 	 	
              13

            	 
	
              1.15

            	 	 	
              Taxes

            	 	 	
              14

            	 
	
              1.16

            	 	 	
              Capital
                Adequacy; Increased Costs; Illegality

            	 	 	
              15

            	 
	
              1.17

            	 	 	
              Single
                Loan

            	 	 	
              16

            	 
	
              1.18

            	 	 	
              Rate
                Management Agreements

            	 	 	
              16

            	 
	
              2. 
                CONDITIONS
                PRECEDENT

            	 	 	
              16

            	 
	
              2.1

            	 	 	
              Conditions
                to the Initial Loans

            	 	 	
              16

            	 
	
              2.2

            	 	 	
              Further
                Conditions to Each Loan

            	 	 	
              18

            	 
	
              3. 
                REPRESENTATIONS
                AND WARRANTIES

            	 	 	
              18

            	 
	
              3.1

            	 	 	
              Corporate
                Existence; Compliance with Law

            	 	 	
              19

            	 
	
              3.2

            	 	 	
              Executive
                Offices, Collateral Locations, FEIN

            	 	 	
              19

            	 
	
              3.3

            	 	 	
              Corporate
                Power, Authorization, Enforceable Obligations

            	 	 	
              19

            	 
	
              3.4

            	 	 	
              Financial
                Statements and Projections

            	 	 	
              20

            	 
	
              3.5

            	 	 	
              Material
                Adverse Effect

            	 	 	
              21

            	 
	
              3.6

            	 	 	
              Ownership
                of Property; Liens

            	 	 	
              21

            	 
	
              3.7

            	 	 	
              Labor
                Matters

            	 	 	
              21

            	 

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

    

      TABLE
        OF CONTENTS

      (continued)

      Page

    

     

    
      	
              3.8

            	 	 	
              Ventures,
                Subsidiaries and Affiliates; Outstanding Stock and
                Indebtedness

            	 	 	
              22

            	 
	
              3.9

            	 	 	
              Government
                Regulation

            	 	 	
              22

            	 
	
              3.10

            	 	 	
              Margin
                Regulations

            	 	 	
              22

            	 
	
              3.11

            	 	 	
              Taxes

            	 	 	
              23

            	 
	
              3.12

            	 	 	
              ERISA

            	 	 	
              23

            	 
	
              3.13

            	 	 	
              No
                Litigation

            	 	 	
              24

            	 
	
              3.14

            	 	 	
              Brokers

            	 	 	
              24

            	 
	
              3.15

            	 	 	
              Intellectual
                Property

            	 	 	
              24

            	 
	
              3.16

            	 	 	
              Full
                Disclosure

            	 	 	
              25

            	 
	
              3.17

            	 	 	
              Environmental
                Matters

            	 	 	
              25

            	 
	
              3.18

            	 	 	
              Insurance

            	 	 	
              26

            	 
	
              3.19

            	 	 	
              Deposit
                and Disbursement Accounts

            	 	 	
              26

            	 
	
              3.20

            	 	 	
              Government
                Contracts

            	 	 	
              26

            	 
	
              3.21

            	 	 	
              Customer
                and Trade Relations

            	 	 	
              26

            	 
	
              3.22

            	 	 	
              Agreements
                and Other Documents

            	 	 	
              26

            	 
	
              3.23

            	 	 	
              Solvency

            	 	 	
              26

            	 
	
              3.24

            	 	 	
              Acquisition
                Agreements

            	 	 	
              26

            	 
	
              3.25

            	 	 	
              Foreign
                Assets Control Regulations

            	 	 	
              28

            	 
	
              3.26

            	 	 	
              Anti-Terrorism
                Law

            	 	 	
              28

            	 
	
              4. 
                FINANCIAL
                STATEMENTS AND INFORMATION

            	 	 	
              29

            	 
	
              4.2

            	 	 	
              Communication
                with Accountants

            	 	 	
              29

            	 
	
              5. 
                AFFIRMATIVE
                COVENANTS

            	 	 	
              29

            	 
	
              5.1

            	 	 	
              Maintenance
                of Existence and Conduct of Business

            	 	 	
              29

            	 
	
              5.2

            	 	 	
              Payment
                of Charges

            	 	 	
              29

            	 
	
              5.3

            	 	 	
              Books
                and Records

            	 	 	
              30

            	 
	
              5.4

            	 	 	
              Insurance;
                Damage to or Destruction of Collateral

            	 	 	
              30

            	 
	
              5.5

            	 	 	
              Compliance
                with Laws

            	 	 	
              33

            	 
	
              5.6

            	 	 	
              Supplemental
                Disclosure

            	 	 	
              33

            	 
	
              5.7

            	 	 	
              Intellectual
                Property

            	 	 	
              34

            	 
	
              5.8

            	 	 	
              Environmental
                Matters

            	 	 	
              34

            	 

    

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    

      TABLE
        OF CONTENTS

      (continued)

      Page

    

     

    
      	
              5.9

            	 	 	
              Landlords’
                Agreements, Mortgagee Agreements, Bailee Letters and Real Estate
                Purchases

            	 	 	
              34

            	 
	
              5.10

            	 	 	
              Key
                Man Life Insurance

            	 	 	
              35

            	 
	
              5.11

            	 	 	
              ERISA

            	 	 	
              35

            	 
	
              5.12

            	 	 	
              Foreign
                Subsidiaries

            	 	 	
              36

            	 
	
              5.13

            	 	 	
              Further
                Assurances

            	 	 	
              36

            	 
	
              5.14

            	 	 	
              Patriot
                Act Compliance

            	 	 	
              36

            	 
	
              5.15

            	 	 	
              BetaTHERM
                Reorganization

            	 	 	
              36

            	 
	
              6. 
                NEGATIVE
                COVENANTS

            	 	 	
              36

            	 
	
              6.1

            	 	 	
              Mergers,
                Subsidiaries, Etc

            	 	 	
              37

            	 
	
              6.2

            	 	 	
              Investments;
                Loans and Advances

            	 	 	
              40

            	 
	
              6.3

            	 	 	
              Indebtedness

            	 	 	
              40

            	 
	
              6.4

            	 	 	
              Affiliate
                Transactions

            	 	 	
              41

            	 
	
              6.5

            	 	 	
              Capital
                Structure and Business

            	 	 	
              41

            	 
	
              6.6

            	 	 	
              Guaranteed
                Indebtedness

            	 	 	
              42

            	 
	
              6.7

            	 	 	
              Liens

            	 	 	
              42

            	 
	
              6.8

            	 	 	
              Sale
                of Stock and Assets

            	 	 	
              42

            	 
	
              6.9

            	 	 	
              ERISA

            	 	 	
              43

            	 
	
              6.10

            	 	 	
              Financial
                Covenants

            	 	 	
              43

            	 
	
              6.11

            	 	 	
              Hazardous
                Materials

            	 	 	
              43

            	 
	
              6.12

            	 	 	
              Sale-Leasebacks

            	 	 	
              43

            	 
	
              6.13

            	 	 	
              Cancellation
                of Indebtedness

            	 	 	
              43

            	 
	
              6.14

            	 	 	
              Restricted
                Payments

            	 	 	
              43

            	 
	
              6.15

            	 	 	
              Change
                of Corporate Name or Location; Change of Fiscal Year

            	 	 	
              43

            	 
	
              6.16

            	 	 	
              No
                Impairment of Intercompany Transfers

            	 	 	
              44

            	 
	
              6.17

            	 	 	
              No
                Speculative Transactions

            	 	 	
              44

            	 
	
              6.18

            	 	 	
              Changes
                Relating to the Acquisition Agreements

            	 	 	
              44

            	 
	
              6.19

            	 	 	
              Intermediate
                Holdings

            	 	 	
              44

            	 
	
              7. 
                TERM

            	 	 	
              44

            	 
	
              7.1

            	 	 	
              Termination

            	 	 	
              44

            	 

    

     

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

     

    
      TABLE
        OF CONTENTS

      (continued)

      Page

    

     

    
      	
              7.2

            	 	 	
              Survival
                of Obligations Upon Termination of Financing Arrangements

            	 	 	
              44

            	 
	
              8. 
                EVENTS
                OF DEFAULT; RIGHTS AND REMEDIES

            	 	 	
              45

            	 
	
              8.1

            	 	 	
              Events
                of Default

            	 	 	
              45

            	 
	
              8.2

            	 	 	
              Remedies

            	 	 	
              47

            	 
	
              8.3

            	 	 	
              Waivers
                by Credit Parties

            	 	 	
              47

            	 
	
              9. 
                ASSIGNMENT
                AND PARTICIPATIONS; APPOINTMENT OF AGENT

            	 	 	
              48

            	 
	
              9.1

            	 	 	
              Assignment
                and Participations

            	 	 	
              48

            	 
	
              9.2

            	 	 	
              Appointment
                of Agent

            	 	 	
              50

            	 
	
              9.3

            	 	 	
              Agent’s
                Reliance, Etc

            	 	 	
              50

            	 
	
              9.4

            	 	 	
              GE
                Capital and Affiliates

            	 	 	
              51

            	 
	
              9.5

            	 	 	
              Lender
                Credit Decision

            	 	 	
              51

            	 
	
              9.6

            	 	 	
              Indemnification

            	 	 	
              52

            	 
	
              9.7

            	 	 	
              Successor
                Agent

            	 	 	
              52

            	 
	
              9.8

            	 	 	
              Setoff
                and Sharing of Payments

            	 	 	
              53

            	 
	
              9.9

            	 	 	
              Advances;
                Payments; Non-Funding Lenders; Information; Actions in
                Concert

            	 	 	
              53

            	 
	
              10. 
                SUCCESSORS
                AND ASSIGNS

            	 	 	
              55

            	 
	
              10.1

            	 	 	
              Successors
                and Assigns

            	 	 	
              55

            	 
	
              11. 
                MISCELLANEOUS

            	 	 	
              56

            	 
	
              11.1

            	 	 	
              Complete
                Agreement; Modification of Agreement

            	 	 	
              56

            	 
	
              11.2

            	 	 	
              Amendments
                and Waivers

            	 	 	
              56

            	 
	
              11.3

            	 	 	
              Fees
                and Expenses

            	 	 	
              57

            	 
	
              11.4

            	 	 	
              No
                Waiver

            	 	 	
              59

            	 
	
              11.5

            	 	 	
              Remedies

            	 	 	
              59

            	 
	
              11.6

            	 	 	
              Severability

            	 	 	
              59

            	 
	
              11.7

            	 	 	
              Conflict
                of Terms

            	 	 	
              59

            	 
	
              11.8

            	 	 	
              Confidentiality

            	 	 	
              59

            	 
	
              11.9

            	 	 	
              GOVERNING
                LAW

            	 	 	
              60

            	 
	
              11.10

            	 	 	
              Notices

            	 	 	
              61

            	 
	
              11.11

            	 	 	
              Section
                Titles

            	 	 	
              61

            	 

    

     

    
      
        
        

      

      
        -iv-

        
          

        

      

      
        
        

      

    

     

    
      TABLE
        OF CONTENTS

      (continued)

      Page

    

     

    
      	
              11.12

            	 	 	
              Counterparts

            	 	 	
              61

            	 
	
              11.13

            	 	 	
              WAIVER
                OF JURY TRIAL

            	 	 	
              61

            	 
	
              11.14

            	 	 	
              Press
                Releases and Related Matters

            	 	 	
              62

            	 
	
              11.15

            	 	 	
              Reinstatement

            	 	 	
              62

            	 
	
              11.16

            	 	 	
              Advice
                of Counsel

            	 	 	
              62

            	 
	
              11.17

            	 	 	
              No
                Strict Construction

            	 	 	
              62

            	 
	
              11.18

            	 	 	
              Judgment
                Currency

            	 	 	
              63

            	 
	
              11.19

            	 	 	
              Subordination

            	 	 	
              63

            	 
	
              11.20

            	 	 	
              Patriot
                Act Notice

            	 	 	
              64

            	 
	
              12. 
                AFFIRMATION
                OF OBLIGATIONS

            	 	 	
              65

            	 

    

     

    
      
        
        

      

      
        -v-

        
          

        

      

      
        
        

      

    

    INDEX
      OF APPENDICES

     

    
      	
              Annex
                A (Recitals)

            	
              -

            	
              Definitions

            
	
              Annex
                B (Section
                1.2)

            	
              -

            	
              Letters
                of Credit

            
	
              Annex
                C (Section
                1.8)

            	
              -

            	
              Cash
                Management System

            
	
              Annex
                D (Section
                2.1(a))

            	
              -

            	
              Closing
                Checklist

            
	
              Annex
                E (Section
                4.1(a))

            	
              -

            	
              Financial
                Statements and Projections - Reporting

            
	
              Annex
                F (EBITDA and Annex G)

            	
              -

            	
              Acquired
                Subsidiary EBITDA and Fixed Charges

            
	
              Annex
                G (Section
                6.10)

            	
              -

            	
              Financial
                Covenants

            
	
              Annex
                H (Section
                9.9(a))

            	
              -

            	
              Lenders’
                Wire Transfer Information

            
	
              Annex
                I (Section
                11.10)

            	
              -

            	
              Notice
                Addresses

            
	
              Annex
                J (from Annex A-Commitments definition)

            	
              -

            	
              Commitments
                as of Closing Date

            
	
              Exhibit
                1.1(a)(i)

            	
              -

            	
              Form
                of Notice of Revolving Credit Advance

            
	
              Exhibit
                1.1(a)(ii)

            	
              -

            	
              Form
                of Revolving Note

            
	
              Exhibit
                1.1(b)

            	
              -

            	
              Form
                of Term Note

            
	
              Exhibit
                1.5(e)

            	
              -

            	
              Form
                of Notice of Conversion/Continuation

            
	
              Exhibit
                9.1(a)

            	
              -

            	
              Form
                of Assignment Agreement

            
	
              Schedule
                1.1

            	
              -

            	
              Agent’s
                Representatives

            
	
              Disclosure
                Schedule 1.4

            	
              -

            	
              Sources
                and Uses; Funds Flow Memorandum

            
	
              Disclosure
                Schedule 3.1

            	
              -

            	
              Type
                of Entity; State of Organization

            
	
              Disclosure
                Schedule 3.2

            	
              -

            	
              Executive
                Offices, Collateral Locations, FEIN

            
	
              Disclosure
                Schedule 3.4(a)

            	
              -

            	
              Financial
                Statements

            
	
              Disclosure
                Schedule 3.4(b)

            	
              -

            	
              Pro
                Forma

            
	
              Disclosure
                Schedule 3.4(c)

            	
              -

            	
              Projections

            
	
              Disclosure
                Schedule 3.6

            	
              -

            	
              Real
                Estate and Leases

            
	
              Disclosure
                Schedule 3.7

            	
              -

            	
              Labor
                Matters

            
	
              Disclosure
                Schedule 3.8

            	
              -

            	
              Ventures,
                Subsidiaries and Affiliates; Outstanding Stock

            
	
              Disclosure
                Schedule 3.11

            	
              -

            	
              Tax
                Matters

            
	
              Disclosure
                Schedule 3.12

            	
              -

            	
              ERISA
                Plans

            
	
              Disclosure
                Schedule 3.13

            	
              -

            	
              Litigation

            
	
              Disclosure
                Schedule 3.15

            	
              -

            	
              Intellectual
                Property

            
	
              Disclosure
                Schedule 3.17

            	
              -

            	
              Hazardous
                Materials

            
	
              Disclosure
                Schedule 3.18

            	
              -

            	
              Insurance

            
	
              Disclosure
                Schedule 3.19

            	
              -

            	
              Deposit
                and Disbursement Accounts

            
	
              Disclosure
                Schedule 3.20

            	
              -

            	
              Government
                Contracts

            
	
              Disclosure
                Schedule 3.22

            	
              -

            	
              Material
                Agreements

            
	
              Disclosure
                Schedule 5.1

            	
              -

            	
              Trade
                Names

            
	
              Disclosure
                Schedule 6.3

            	
              -

            	
              Indebtedness

            
	
              Disclosure
                Schedule 6.4(a)

            	
              -

            	
              Transactions
                with Affiliates

            
	
              Disclosure
                Schedule 6.6

            	
              -

            	
              Guaranties
                of Foreign Subsidiaries

            
	
              Disclosure
                Schedule 6.7

            	
              -

            	
              Existing
                Liens

            

    

    

    
      
        
        

      

      
        -vi-

        
          

        

      

      
        
        

      

    

    

      EXECUTION
        VERSION

    

    
       

      
        

      

    

     

    AMENDED
      AND RESTATED CREDIT AGREEMENT

     

    Dated
      as
      of April 3, 2006

     

    among

     

    MEASUREMENT
      SPECIALTIES, INC.,

     

    as
      Borrower,

     

    THE
      OTHER
      CREDIT PARTIES SIGNATORY HERETO 

     

    FROM
      TIME
      TO TIME

     

    as
      Credit
      Parties,

     

    THE
      LENDERS SIGNATORY HERETO 

     

    FROM
      TIME
      TO TIME,

     

    as
      Lenders,

     

    and

     

    GENERAL
      ELECTRIC CAPITAL CORPORATION,

     

    as
      Administrative Agent and Lender

     

    WACHOVIA
      BANK, NATIONAL ASSOCIATION,

     

    as
      Syndication Agent,

     

    JPMORGAN
      CHASE BANK, N.A.,

     

    as
      Documentation Agent and as Lender,

     

    GECC
      CAPITAL MARKETS GROUP, INC.,

     

    as
      Lead
      Arranger

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]