Document:

Exhibit 10.1

AMENDED AND
RESTATED

QUIDEL CORPORATION

2001 EQUITY INCENTIVE PLAN

ARTICLE I

PURPOSE OF PLAN

The Company has adopted this Plan to promote the
interests of the Company and its stockholders by using investment interests in
the Company to attract, retain and motivate its management and other persons,
to encourage and reward their contributions to the performance of the Company,
and to align their interests with the interests of the Company’s stockholders.
Capitalized terms not otherwise defined herein have the meanings ascribed to
them in Article IX.

ARTICLE II

EFFECTIVE DATE AND TERM OF PLAN

2.1                               Term
of Plan.

This Plan became
effective as of the Effective Date and will continue in effect until the
earlier of (a) the Expiration Date, or (b) the date of any Plan
termination pursuant to the provisions in Section 8.1,
at which time this Plan will automatically terminate.

2.2                               Effect
on Awards.

Awards may be granted only during the Plan Term, but
each Award properly granted during the Plan Term will remain in effect after
the Expiration Date until such Award has been exercised, terminated or expired
in accordance with its terms and the terms of this Plan.

ARTICLE III

SHARES SUBJECT TO PLAN

3.1                               Number
of Shares.

The maximum number
of shares of Common Stock that may be issued pursuant to Awards under this Plan
is 6,700,000, subject to adjustment as set forth in Section 3.4.

3.2                               Source
of Shares.

The Common Stock
to be issued under this Plan will be made available, at the discretion of the
Administrator, either from authorized but unissued shares of Common Stock or
from previously issued shares of Common Stock reacquired by the Company,
including without limitation shares purchased on the open market.

3.3                               Availability
of Unused Shares.

Shares of Common Stock subject to unexercised portions
of any Award that expire, terminate or are canceled, and shares of Common Stock
issued pursuant to an Award that are reacquired by the Company pursuant to this
Plan or the terms of the Award under which such shares were issued, will again
become available for the grant of further Awards under this Plan as part of the
shares available under Section 3.1.
However, if the exercise price of, or withholding taxes incurred in connection
with, an Award is paid with shares of Common Stock, or if shares of Common
Stock otherwise issuable pursuant to Awards are withheld by the Company in
satisfaction of an exercise price or the withholding taxes incurred in
connection with any exercise or vesting of an Award, then the number of shares
of Common Stock

available for issuance
under the Plan will be reduced by the gross number of shares for which the
Award is exercised or for which it vests, as applicable, and not by the net
number of shares of Common Stock issued to the holder of such Award.

3.4                               Adjustment
Provisions.

(a)                                  Adjustments.   If
the Company consummates any Reorganization in which holders of shares of Common
Stock are entitled to receive in respect of such shares any additional shares
or new or different shares or securities, cash or other consideration
(including, without limitation, a different number of shares of Common Stock),
or if the outstanding shares of Common Stock are increased, decreased or
exchanged for a different number or kind of shares or other securities through
merger, consolidation, sale or exchange of assets of the Company,
reorganization, recapitalization, reclassification, combination, stock
dividend, stock split, reverse stock split, spin-off, or similar transaction
then, subject to Section 8.1, an appropriate
and proportionate adjustment shall be made by the Administrator in:
(i) the maximum number and kind of shares subject to this Plan as provided
in Section 3.1; (ii) the number
and kind of shares or other securities subject to then outstanding Awards;
(iii) the price for each share or other unit of any other securities
subject to, or measurement criteria applicable to, then outstanding Awards; and
(iv) the number and kind of shares or other securities to be issued as
Non-Employee Director Options.

(b)                                 No Fractional Interests.   No fractional interests will
be issued under the Plan resulting from any adjustments.

(c)                                  Adjustments Related to Company Stock.   To the extent
any adjustments relate to stock or securities of the Company, such adjustments
will be made by the Administrator, whose determination in that respect will be
final, binding and conclusive.

(d)                                 Right to Make Adjustment.   The grant of an Award will
not affect in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge or to consolidate or to dissolve, liquidate or sell, or
transfer all or any part of its business or assets.

(e)                                  Limitations.   No adjustment to the terms of an
Incentive Stock Option may be made unless such adjustment either:  (i) would not cause the Option to lose
its status as an Incentive Stock Option; or (ii) is agreed to in writing
by the Administrator and the Recipient.

3.5                               Reservation
of Shares.

The Company will at all times reserve
and keep available shares of Common Stock equaling at least the total number of
shares of Common Stock issuable pursuant to all outstanding Awards.

ARTICLE IV

ADMINISTRATION OF PLAN

4.1                               Administrator.

(a)                                  Plan Administration.   Subject to the provisions of Section 4.1(b), this Plan will be administered by the
Board and may also be administered by a Committee of the Board appointed
pursuant to Section 4.1(b).

(b)                                 Administration by Committee.   The Board in its sole
discretion may from time to time appoint a Committee of not less than two
(2) Board members with authority to administer this Plan in whole or part
and, subject to applicable law, to exercise any or all of the powers, authority
and discretion of the Board under this Plan. As long as the Company has a class
of equity securities registered under Section 12 of the Exchange Act, this
Plan will be administered by a Committee of not less than two (2) Board
members appointed by the Board in its sole discretion from time to time, each
of whom is (i) a Non-Employee 

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Director, and
(ii) an “Outside Director” as defined in the regulations adopted under
Section 162(m) of the IRC. The Board may from time to time increase
or decrease (but not below two (2)) the number of members of the Committee,
remove from membership on the Committee all or any portion of its members,
and/or appoint such person or persons as it desires to fill any vacancy
existing on the Committee, whether caused by removal, resignation or otherwise.
Unless otherwise required by this Section 4.1(b),
the Board may disband the Committee at any time.

4.2                               Authority
of Administrator.

(a)                                  Authority to Interpret Plan.   Subject to the express
provisions of this Plan, the Administrator will have the power to implement,
interpret and construe this Plan and any Awards and Award Documents or other
documents defining the rights and obligations of the Company and Recipients
hereunder and thereunder, to determine all questions arising hereunder and
thereunder, and to adopt and amend such rules and regulations for the
administration hereof and thereof as it may deem desirable. The interpretation
and construction by the Administrator of any provisions of this Plan or of any
Award or Award Document, and any action taken by, or inaction of, the
Administrator relating to this Plan or any Award or Award Document, will be
within the discretion of the Administrator and will be conclusive and binding
upon all persons. Subject only to compliance with the express provisions
hereof, the Administrator may act in its discretion in matters related to this
Plan and any and all Awards and Award Documents.

(b)                                 Authority to Grant Awards.   Subject to the express
provisions of this Plan, the Administrator may from time to time in its
discretion select the Eligible Persons to whom, and the time or times at which,
Awards will be granted or sold, the nature of each Award, the number of shares of
Common Stock or the number of rights that make up or underlie each Award, the
exercise price and period (if applicable) for the exercise of each Award, and
such other terms and conditions applicable to each individual Award as the
Administrator may determine. Any and all terms and conditions of Awards may be
established by the Administrator without regard to existing Awards or other
grants and without incurring any obligation of the Company in respect of
subsequent Awards. The Administrator may grant at any time new Awards to an
Eligible Person who has previously received Awards or other grants (including
other stock options) regardless of the status of such other Awards or grants.
The Administrator may grant Awards singly or in combination or in tandem with
other Awards as it determines in its discretion.

(c)                                  Procedures.   Subject to the Company’s charter or bylaws
or any Board resolution conferring authority on the Committee, any action of
the Administrator with respect to the administration of this Plan must be taken
pursuant to a majority vote of the authorized number of members of the
Administrator or by the unanimous written consent of its members; provided, however, that (i) if the
Administrator is the Committee and consists of two (2) members, then
actions of the Administrator must be unanimous, and (ii) actions taken by
the Board will be valid if approved in accordance with applicable law.

4.3                               No
Liability.

No member of the
Board or the Committee or any designee thereof will be liable for any action or
inaction with respect to this Plan or any Award or any transaction arising
under this Plan or any Award except in circumstances constituting bad faith of
such member.

4.4                               Amendments.

(a)                                  Plan Amendments.   The Administrator may at any time and
from time to time in its discretion, insofar as permitted by applicable law,
rule or regulation and subject to Section 4.4(c),
suspend or discontinue this Plan or revise or amend it in any respect
whatsoever, and this Plan as so revised or amended will govern all Awards,
including those granted before such revision or amendment. Without limiting the
generality of the foregoing, the Administrator is authorized to amend this Plan
to comply with

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or take advantage of
amendments to applicable laws, rules or regulations, including the
Securities Act, the Exchange Act, the IRC, or the rules of any exchange or
market system upon which the Common Stock is listed or trades, or any
rules or regulations promulgated thereunder. No stockholder approval of
any amendment or revision will be required unless such approval is required by
applicable law, rule or regulation.

(b)                                 Award Amendments.   The Administrator may at any time
and from time to time in its discretion, but subject to Section 4.4(c) and
compliance with applicable statutory or administrative requirements, accelerate
or extend the vesting or exercise period of any Award as a whole or in part,
and make such other modifications in the terms and conditions of an Award as it
deems advisable, provided, however,
that the Administrator may reduce the exercise price of a Stock Option (either
by cancellation of such Stock Option and the granting of a new Stock Option at
such modified exercise price or by amending the terms of the Stock Option to
reflect such a modified exercise price) only with stockholder approval.

(c)                                  Limitation.   Except as otherwise provided in this Plan
or in the applicable Award Document, no amendment, revision, suspension or
termination of this Plan or an outstanding Award that would cause an Incentive
Stock Option to cease to qualify as such or that would alter, impair or
diminish in any material respect any rights or obligations under any Award
theretofore granted under this Plan may be effected without the written consent
of the Recipient to whom such Award was granted.

4.5                               Other
Compensation Plans.

The adoption of
this Plan will not affect any other stock option, incentive or other
compensation plans in effect from time to time for the Company, and this Plan
will not preclude the Company from establishing any other forms of incentive or
other compensation for employees, directors, advisors or consultants of the
Company, whether or not approved by stockholders. This Plan does not affect in
any way any outstanding award grants made under such plans and awards granted
under such plans will continue to be governed by the terms and conditions of
such plans.

4.6                               Plan
Binding on Successors.

This Plan will be
binding upon the successors and assigns of the Company.

4.7                               References
to Successor Statutes, Regulations and Rules.

Any reference in
this Plan to a particular statute, regulation or rule will also refer to
any successor provision of such statute, regulation or rule.

4.8                               Invalid
Provisions.

In the event that
any provision of this Plan is found to be invalid or otherwise unenforceable
under any applicable law, such invalidity or unenforceability is not to be
construed as rendering any other provisions contained herein invalid or
unenforceable, and all such other provisions are to be given full force and
effect to the same extent as though the invalid and unenforceable provision
were not contained herein.

4.9                               Governing
Law.

This Plan will be governed by and interpreted in
accordance with the internal laws of the State of Delaware, without giving
effect to the principles of the conflicts of laws thereof.

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4.10                        Interpretation.

Headings herein are for convenience of reference only,
do not constitute a part of this Plan, and will not affect the meaning or
interpretation of this Plan. References herein to Sections or Articles are
references to the referenced Section or Article hereof, unless
otherwise specified.

ARTICLE V

GENERAL AWARD PROVISIONS

5.1                               Participation
in Plan.

(a)                                  Eligibility to Receive Awards.   A person is eligible to
receive grants of Awards if, at the time of the grant of the Award, such person
is an Eligible Person or has received an offer of employment from the Company, provided, however, that only Non-Employee
Directors are eligible to receive Non-Employee Director Options, and provided further, that Awards granted to a
person who has received an offer of employment will terminate and be forfeited
without consideration if the employment offer is not accepted within such time
as may be specified by the Company. Status as an Eligible Person will not be
construed as a commitment that any Award will be granted under this Plan to an
Eligible Person or to Eligible Persons generally.

(b)                                 Eligibility to Receive Incentive Stock Options.   Incentive
Stock Options may be granted only to Eligible Persons meeting the employment
requirements of Section 422 of the IRC.

(c)                                  Awards to Foreign Nationals.   Notwithstanding anything
to the contrary herein, the Administrator may, in order to fulfill the purposes
of this Plan, modify grants of Awards to Recipients who are foreign nationals
or employed outside of the United States to recognize differences in applicable
law, tax policy or local custom.

5.2                               Award
Documents.

Each Award must be
evidenced by an agreement duly executed on behalf of the Company and by the
Recipient or, in the Administrator’s discretion, a confirming memorandum issued
by the Company to the Recipient, setting forth such terms and conditions
applicable to the Award as the Administrator may in its discretion determine.
Awards will not be deemed made or binding upon the Company, and Recipients will
have no rights thereto, until such an agreement is entered into between the
Company and the Recipient or such a memorandum is delivered by the Company to
the Recipient, but an Award may have an effective date prior to the date of
such an agreement or memorandum. Award Documents may be (but need not be)
identical and must comply with and be subject to the terms and conditions of
this Plan, a copy of which will be provided to each Recipient and incorporated
by reference into each Award Document. Any Award Document may contain such
other terms, provisions and conditions not inconsistent with this Plan as may
be determined by the Administrator. In case of any conflict between this Plan
and any Award Document, this Plan shall control.

5.3                               Payment
For Awards.

(a)                                  Payment of Exercise Price.   The exercise price or other
payment for an Award is payable upon the exercise of a Stock Option or upon
other purchase of shares pursuant to an Award granted hereunder by delivery of
legal tender of the United States or payment of such other consideration as the
Administrator may from time to time deem acceptable in any particular instance;
provided, however, that the
Administrator may, in the exercise of its discretion, allow exercise of an
Award in a broker-assisted or similar transaction in which the exercise price
is not received by the Company until promptly after exercise.

(b)                                 [Reserved]

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(c)                                  Cashless Exercise.   If permitted in any case by the
Administrator in its discretion, the exercise price for Awards may be paid by
capital stock of the Company delivered in transfer to the Company by or on
behalf of the person exercising the Award and duly endorsed in blank or
accompanied by stock powers duly endorsed in blank, with signatures guaranteed
in accordance with the Exchange Act if required by the Administrator; or
retained by the Company from the stock otherwise issuable upon exercise or
surrender of vested and/or exercisable Awards or other equity awards previously
granted to the Recipient and being exercised (if applicable) (in either case
valued at Fair Market Value as of the exercise date); or such other
consideration as the Administrator may from time to time in the exercise of its
discretion deem acceptable in any particular instance.

(d)                                 No Precedent.   Recipients will have no rights to the
exercise techniques described in Section 5.3(c),
and the Company may offer or permit such techniques on an ad hoc basis to any Recipient without
incurring any obligation to offer or permit such techniques on other occasions
or to other Recipients.

5.4                               No
Employment Rights.

Nothing contained
in this Plan (or in Award Documents or in any other documents related to this
Plan or to Awards) will confer upon any Eligible Person or Recipient any right
to continue in the employ of or engagement by the Company or any Affiliated
Entity or constitute any contract or agreement of employment or engagement, or
interfere in any way with the right of the Company or any Affiliated Entity to
reduce such person’s compensation or other benefits or to terminate the
employment or engagement of such Eligible Person or Recipient, with or without
cause. Except as expressly provided in this Plan or in any statement evidencing
the grant of an Award, the Company has the right to deal with each Recipient in
the same manner as if this Plan and any such statement evidencing the grant of
an Award did not exist, including, without limitation, with respect to all
matters related to the hiring, discharge, compensation and conditions of the
employment or engagement of the Recipient. Unless otherwise set forth in a
written agreement binding upon the Company or an Affiliated Entity, all
employees of the Company or an Affiliated Entity are “at will” employees whose
employment may be terminated by the Company or the Affiliated Entity at any
time for any reason or no reason, without payment or penalty of any kind. Any
question(s) as to whether and when there has been a termination of a
Recipient’s employment or engagement, the reason (if any) for such termination,
and/or the consequences thereof under the terms of this Plan or any statement
evidencing the grant of an Award pursuant to this Plan will be determined by
the Administrator and the Administrator’s determination thereof will be final
and binding.

5.5                               Restrictions
Under Applicable Laws and Regulations.

(a)                                  Government Approvals.   All Awards will be subject to
the requirement that, if at any time the Company determines, in its discretion,
that the listing, registration or qualification of the securities subject to
Awards granted under this Plan upon any securities exchange or interdealer
quotation system or under any federal, state or foreign law, or the consent or
approval of any government or regulatory body, is necessary or desirable as a
condition of, or in connection with, the granting of such an Award or the
issuance, if any, or purchase of shares in connection therewith, such Award may
not be exercised as a whole or in part unless and until such listing,
registration, qualification, consent or approval has been effected or obtained
free of any conditions not acceptable to the Company. During the term of this
Plan, the Company will use its reasonable efforts to seek to obtain from the
appropriate governmental and regulatory agencies any requisite qualifications,
consents, approvals or authorizations in order to issue and sell such number of
shares of its Common Stock as is sufficient to satisfy the requirements of this
Plan. The inability of the Company to obtain any such qualifications, consents,
approvals or authorizations after such reasonable efforts will relieve the
Company of any liability in respect of the nonissuance or sale of such stock as
to which such qualifications, consents, approvals or authorizations pertain.

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(b)                                 No Registration Obligation; Recipient Representations.   The
Company will be under no obligation to register or qualify the issuance of
Awards or underlying securities under the Securities Act or applicable state
securities laws. Unless the issuance of Awards and underlying securities have
been registered under the Securities Act and qualified or registered under
applicable state securities laws, the Company shall be under no obligation to
issue any Awards or underlying securities unless the Awards and underlying
securities may be issued pursuant to applicable exemptions from such
registration or qualification requirements. In connection with any such exempt
issuance, the Administrator may require the Recipient to provide a written
representation and undertaking to the Company, satisfactory in form and scope
to the Company, that such Recipient is acquiring such Awards and underlying
securities for such Recipient’s own account as an investment and not with a
view to, or for sale in connection with, the distribution of any such
securities, and that such person will make no transfer of the same except in
compliance with any rules and regulations in force at the time of such
transfer under the Securities Act and other applicable law, and that if
securities are issued without 
registration, a legend to this effect (together with any other legends
deemed appropriate by the Administrator) may be endorsed upon the securities so
issued, and to the effect of any additional representations that are
appropriate in light of applicable securities laws and rules. The Company may
also order its transfer agent to stop transfers of such shares. The
Administrator may also require the Recipient to provide the Company such
information and other documents as the Administrator may request in order to
satisfy the Administrator as to the investment sophistication and experience of
the Recipient and as to any other conditions for compliance with any such
exemptions from registration or qualification.

5.6                               Additional
Conditions.

Any Award may be
subject to such provisions (whether or not applicable to any other Award or
Recipient) as the Administrator deems appropriate, including without limitation
provisions for the forfeiture of or restrictions on resale or other disposition
of securities of the Company acquired under this Plan, provisions giving the
Company the right to repurchase securities of the Company acquired under this
Plan in the event the Recipient leaves the Company for any reason or elects to
effect any disposition thereof, and provisions to comply with federal and state
securities laws.

5.7                               No
Privileges re Stock Ownership or Specific Assets.

Except as
otherwise set forth herein, a Recipient or a permitted transferee of an Award
will have no rights as a stockholder with respect to any shares issuable or
issued in connection with the Award until the Recipient has delivered to the Company
all amounts payable and performed all obligations required to be performed in
connection with exercise of the Award and the Company has issued such shares.
No person will have any right, title or interest in any fund or in any specific
asset (including shares of capital stock) of the Company by reason of any Award
granted hereunder. Neither this Plan (or any documents related hereto) nor any
action taken pursuant hereto is to be construed to create a trust of any kind
or a fiduciary relationship between the Company and any person. To the extent
that any person acquires a right to receive an Award hereunder, such right
shall be no greater than the right of any unsecured general creditor of the
Company.

5.8                               Nonassignability.

No Award is
assignable or transferable except: 
(a) by will or by the laws of descent and distribution; or
(b) subject to the final sentence of this Section 5.8,
upon dissolution of marriage pursuant to a qualified domestic relations order
or, in the discretion of the Administrator on a case-by-case basis and under
circumstances that would not adversely affect the interests of the Company,
transfers for estate planning purposes or pursuant to a nominal transfer that
does not result in a change in beneficial ownership. Subject to the final
sentence of this Section 5.8, during the
lifetime of a Recipient, an Award granted to such

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person
will be exercisable only by the Recipient (or the Recipient’s permitted
transferee) or such person’s guardian or legal representative. Notwithstanding
the foregoing, Stock Options intended to be treated as Incentive Stock Options
(or other Awards subject to transfer restrictions under the IRC) (i) may
not be assigned or transferred in violation of Section 422(b)(5) of
the IRC or the regulations thereunder, and nothing herein is intended to allow
such assignment or transfer; and (ii) will be exercisable during a
Recipient’s lifetime only by the Recipient.

5.9                               Information
To Recipients.

(a)                                  Provision of Information.   The Administrator in its
sole discretion may determine what, if any, financial and other information is
to be provided to Recipients and when such financial and other information is
to be provided after giving consideration to applicable federal and state laws,
rules and regulations, including, without limitation, applicable federal
and state securities laws, rules and regulations.

(b)                                 Confidentiality.   The furnishing of financial and other
information that is confidential to the Company is subject to the Recipient’s
agreement to maintain the confidentiality of such financial and other
information, and not to use the information for any purpose other than
evaluating the Recipient’s position under this Plan. The Administrator may
impose other restrictions on the access to and use of such confidential
information and may require a Recipient to acknowledge the Recipient’s
obligations under this Section 5.9(b) (which
acknowledgment is not to be a condition to Recipient’s obligations under this Section 5.9(b)).

5.10                        Withholding
Taxes.

Whenever the granting, vesting or exercise of any
Award, or the issuance of any Common Stock or other securities upon exercise of
any Award or transfer thereof, gives rise to tax or tax withholding liabilities
or obligations, the Administrator will have the right as a condition thereto to
require the Recipient to remit to the Company an amount sufficient to satisfy
any federal, state and local withholding tax requirements arising in connection
therewith. The Administrator may, in the exercise of its discretion, allow
satisfaction of tax withholding requirements by accepting delivery of stock of
the Company or by withholding a portion of the stock otherwise issuable in
connection with an Award, in each case valued at Fair Market Value as of the
date of such delivery or withholding, as the case may be.

5.11                        Legends
on Awards and Stock Certificates.

Each Award
Document and each certificate representing securities acquired upon grant, vesting
or exercise of an Award must be endorsed with all legends, if any, required by
applicable federal and state securities and other laws to be placed on the
Award Document and/or the certificate. The determination of which legends, if
any, will be placed upon Award Documents or the certificates will be made by
the Administrator in its discretion and such decision will be final and
binding.

5.12                        Effect of
Termination of Employment on Awards.

(a)                                  Termination of Vesting.   Notwithstanding anything to
the contrary herein, but subject to Section 5.12(b) Awards
will be exercisable by a Recipient (or the Recipient’s successor in interest)
following such Recipient’s termination of employment or service only to the
extent that installments thereof had become exercisable on  or prior to the date of such termination.

(b)                                 Alteration of Vesting and Exercise Periods.   Notwithstanding
anything to the contrary herein, the Administrator may in its discretion
(i) designate shorter or longer periods following a Recipient’s
termination of employment or service during which Awards may vest or be
exercised; provided, however,
that any shorter periods determined by the Administrator will be effective only
if provided for in this Plan or the instrument that evidences the grant to the
Recipient of the affected Award or if such shorter period

 8
 

is agreed to in
writing by the Recipient, and (ii) accelerate the vesting of all or any
portion of any Awards by increasing the number of shares purchasable at any
time.

(c)                                  Leave of Absence.   In the case of any employee on an
approved leave of absence, the Administrator may make such provision respecting
continuance of Awards granted to such employee as the Administrator in its
discretion deems appropriate, except that in no event will an Award be
exercisable after the date such Award would expire in accordance with its terms
had the Recipient remained continuously employed.

(d)                                 General Cessation.   Except as otherwise set forth in
this Plan or an Award Document or as determined by the Administrator in its
discretion, all Awards granted to a Recipient, and all of such Recipient’s
rights thereunder, will terminate upon termination for any reason of such
Recipient’s employment or service with the Company or any Affiliated Entity (or
cessation of any other service relationship between the Recipient and the
Company or any Affiliated Entity in place as of the date the Award was
granted).

5.13                        Lock-Up
Agreements.

Each Recipient
agrees as a condition to receipt of an Award that, in connection with any
public offering by the Company of its equity securities and upon the request of
the Company and the principal underwriter (if any) in such public offering, any
shares of Common Stock acquired or that may be acquired upon exercise or
vesting of an Award may not be sold, offered for sale, encumbered, or otherwise
disposed of or subjected to any transaction that will involve any sales or
other transfer of securities of the Company, or any interest therein, without
the prior written consent of the Company or such underwriter, as the case may
be, for a period of not more than 365 days after the commencement date of such
public offering. Each Recipient will, if requested by the Company or the
principal underwriter, enter into a separate agreement to the effect of this Section 5.13.

5.14                        Restrictions
on Common Stock and Other Securities.

Common Stock or
other securities of the Company issued or issuable in connection with any Award
will be subject to all of the restrictions imposed under this Plan upon Common
Stock issuable or issued upon exercise of Stock Options, except as otherwise
determined by the Administrator.

5.15                        Limits on
Awards to Eligible Persons.

Notwithstanding any other provision of this Plan, no
one Eligible Person shall be (a) granted Awards (other than Performance
Awards payable in cash) with respect to more than 1,800,000 shares of Common
Stock in any one calendar year, and (b) granted Performance Awards payable in
cash that exceed $1,000,000 in any one calendar year, provided, however, that this limitation
shall not apply if it is not required in order for the compensation
attributable to Awards hereunder to qualify as Performance-Based Compensation.
The limitation set forth in this Section 5.15(a)
will be subject to adjustment as provided in Section 3.4
or under Article VIII, but only to the
extent such adjustment would not affect the status of compensation attributable
to Awards as Performance-Based Compensation.

ARTICLE
VI

AWARDS

6.1                               Stock
Options.

(a)                                  Nature of Stock Options.   Stock Options may be
Incentive Stock Options or Nonqualified Stock Options.

(b)                                 Option Exercise Price.   The exercise price for each
Stock Option will be determined by the Administrator as of the date such Stock
Option is granted.

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(c)                                  Option Period and Vesting.   Stock Options granted
hereunder will vest and may be exercised as determined by the Administrator,
except that exercise of Stock Options after termination of the Recipient’s
employment or service shall be subject to Section 5.12
and Section 6.1(e). Each Stock Option
granted hereunder and all rights or obligations thereunder shall expire on such
date as may be determined by the Administrator, but not later than ten
(10) years after the date the Stock Option is granted and may be subject
to earlier termination as provided herein or in the Award Document. Except as
otherwise provided herein, a Stock Option will become exercisable, as a whole
or in part, on the date or dates specified by the Administrator and thereafter
will remain exercisable until the exercise, expiration or earlier termination
of the Stock Option.

(d)                                 Exercise of Stock Options.   The exercise price for
Stock Options will be paid as set forth in Section 5.3.
No Stock Option will be exercisable except in respect of whole shares, and fractional
share interests shall be disregarded. Not fewer than 100 shares of Common Stock
(or such other amount as may be set forth in the applicable Award Document) may
be purchased at one time and Stock Options must be exercised in multiples of
100 unless the number purchased is the total number of shares for which the
Stock Option is exercisable at the time of exercise. A Stock Option will be
deemed to be exercised when the Secretary or other designated official of the
Company receives written notice of such exercise from the Recipient in the form
of Exhibit A hereto or such other form
as the Company may specify from time to time, together with payment of the
exercise price in accordance with Section 5.3
and any amounts required under Section 5.10
or, with permission of the Administrator, arrangement for such payment.
Notwithstanding any other provision of this Plan, the Administrator may impose,
by rule and/or in Award Documents, such conditions upon the exercise of
Stock Options (including, without limitation, conditions limiting the time of
exercise to specified periods) as may be required to satisfy applicable
regulatory requirements, including, without limitation, Rule 16b-3
and Rule 10b-5 under the Exchange Act, and any amounts required
under Section 5.10, or any applicable
section of or regulation under the IRC.

(e)                                  Termination of Employment.

(i)                                     Termination for Just Cause.   Subject to Section 5.12 and except as otherwise provided in a
written agreement between the Company or an Affiliated Entity and the
Recipient, which may be entered into at any time before or after termination of
employment or service, in the event of a Just Cause Dismissal of a Recipient
all of the Recipient’s unexercised Stock Options, whether or not vested, will
expire and become unexercisable as of the date of such Just Cause Dismissal.

(ii)                                  Termination Other Than for Just Cause.   Subject to Section 5.12 and except as otherwise provided in a
written agreement between the Company or an Affiliated Entity and the
Recipient, which may be entered into at any time before or after termination of
employment or service, if a Recipient’s employment or service with the Company
or any Affiliated Entity terminates for:

(A)                              any
reason other than for Just Cause Dismissal, death, or Permanent Disability, the
Recipient’s Stock Options, whether or not vested, will expire and become
unexercisable as of the earlier of: (1) the date such Stock Options would
expire in accordance with their terms had the Recipient remained employed; and
(2) 90 days after the date of termination of employment or service.

(B)                                death
or Permanent Disability, the Recipient’s unexercised Stock Options will,
whether or not vested, expire and become unexercisable as of the earlier
of:  (1) the date such Stock Options
would expire in accordance with their terms had the Recipient remained
employed; and (2) one year after the date of termination of employment or
service.

 10
 

(f)                                    Special Provisions Regarding Incentive Stock Options.   Notwithstanding
anything herein to the contrary,

(i)                                     The
exercise price and vesting period of any Stock Option intended to be treated as
an Incentive Stock Option must comply with the provisions of Section 422
of the IRC and the regulations thereunder. As of the Effective Date, such
provisions require, among other matters, that: 
(A) the exercise price must not be less than the Fair Market Value
of the underlying stock as of the date the Incentive Stock Option is granted,
and not less than 110% of the Fair Market Value as of such date in the case of
a grant to a Significant Stockholder; and (B) that the Incentive Stock
Option not be exercisable after the expiration of ten (10) years from the
date of grant or the expiration of five (5) years from the date of grant
in the case of an Incentive Stock Option granted to a Significant Stockholder.

(ii)                                  The
aggregate Fair Market Value (determined as of the respective date or dates of
grant) of the Common Stock for which one or more Stock Options granted to any
Recipient under this Plan (or any other option plan of the Company or of any
Parent Corporation or Subsidiary Corporation) may for the first time become
exercisable as Incentive Stock Options under the federal tax laws during any
one calendar year may not exceed $100,000.

(iii)                               Any Stock Options
granted as Incentive Stock Options pursuant to this Plan that for any reason
fail or cease to qualify as such will be treated as Nonqualified Stock Options.
If the limit described in Section 6.1(f)(ii) is
exceeded, the earliest granted Stock Options will be treated as Incentive Stock
Options, up to such limit.

(g)                                 Non-Employee Director Options.   Article VII will
govern Non-Employee Director Options to the extent inconsistent with this Section 6.1.

6.2                               Performance
Awards.

(a)                                  Grant of Performance Award.   The Administrator will
determine in its discretion the preestablished, objective performance goals
(which need not be identical and may be established on an individual or group
basis) governing Performance Awards, the terms thereof, and the form and time
of payment of Performance Awards.

(b)                                 Payment of Award.   Upon satisfaction of the conditions
applicable to a Performance Award, payment will be made to the Recipient in
cash, in shares of Common Stock valued at Fair Market Value as of the date
payment is due, or in a combination of Common Stock and cash, as the
Administrator in its discretion may determine.

(c)                                  Maximum Amount of Compensation.   The maximum amount
payable in cash pursuant to that portion of a Performance Award granted for any
calendar year to any Recipient that is intended to satisfy the requirements for
Performance-Based Compensation shall not exceed $1,000,000.

6.3                               Restricted
Stock.

(a)                                  Award of Restricted Stock.   The Administrator will determine the Purchase Price (if
any), the terms of payment of the Purchase Price, the restrictions upon the
Restricted Stock, and when such restrictions will lapse.

(b)                                 Requirements of Restricted Stock.   All shares of
Restricted Stock granted or sold pursuant to this Plan will be subject to the
following conditions:

(i)                                     No Transfer.   The shares may not be sold, assigned,
transferred, pledged, hypothecated or otherwise disposed of, alienated or encumbered
until the restrictions are removed or expire;

 11
 

(ii)                                  Certificates.   The Administrator may require that the
certificates representing Restricted Stock granted or sold to a Recipient
remain in the physical custody of an escrow holder or the Company until all
restrictions are removed or expire;

(iii)                               Restrictive
Legends.   Each certificate representing Restricted Stock
granted or sold to a Recipient pursuant to this Plan will bear such legend or
legends making reference to the restrictions imposed upon such Restricted Stock
as the Administrator in its discretion deems necessary or appropriate to
enforce such restrictions; and

(iv)                              Other Restrictions.   The Administrator may impose such
other conditions on Restricted Stock as the Administrator may deem advisable,
including, without limitation, restrictions under the Securities Act, under the
Exchange Act, under the requirements of any stock exchange or interdealer
quotation system upon which such Restricted Stock or other securities of the
Company are then listed or traded and under any blue sky or other securities
laws applicable to such shares.

(c)                                  Lapse of Restrictions.   The restrictions imposed upon
Restricted Stock will lapse in accordance with such terms or other conditions
as are determined by the Administrator.

(d)                                 Rights of Recipient.   Subject to the provisions of Section 6.3(b) and any restrictions imposed upon
the Restricted Stock, the Recipient will have all rights of a stockholder with
respect to the Restricted Stock granted or sold to such Recipient under this
Plan, including, without limitation, the right to vote the shares and receive
all dividends and other distributions paid or made with respect thereto.

(e)                                  Termination of Employment.   Unless the Administrator in
its discretion determines otherwise, if a Recipient’s employment or service
with the Company or any Affiliated Entity terminates for any reason, all of the
Recipient’s Restricted Stock remaining subject to restrictions on the date of
such termination of employment or service will be repurchased by the Company at
the Purchase Price (if any) paid by the Recipient to the Company, without
interest or premium, and otherwise returned to the Company without
consideration.

6.4                               Stock
Appreciation Rights.

(a)                                  Granting of Stock Appreciation Rights.   The
Administrator may at any time and from time to time approve the grant to
Eligible Persons of Stock Appreciation Rights, related or unrelated to Stock
Options.

(b)                                 SARs Related to Options.

(i)                                     A
Stock Appreciation Right related to a Stock Option will entitle the holder of
the related Stock Option, upon exercise of the Stock Appreciation Right, to
surrender such Stock Option, or any portion thereof to the extent previously
vested but unexercised, with respect to the number of shares as to which such
Stock Appreciation Right is exercised, and to receive payment of an amount
computed pursuant to Section 6.4(b)(iii).
Such Stock Option will, to the extent surrendered, then cease to be
exercisable.

(ii)                                  A
Stock Appreciation Right related to a Stock Option hereunder will be
exercisable at such time or times, and only to the extent that, the related
Stock Option is exercisable, and will not be transferable except to the extent
that such related Stock Option may be transferable (and under the same
conditions), will expire no later than the expiration of the related Stock
Option, and may be exercised only when the market price of the Common Stock
subject to the related Stock Option exceeds the exercise price of the Stock
Option.

(iii)                               Upon the exercise of a
Stock Appreciation Right related to a Stock Option, the Recipient will be
entitled to receive payment of an amount determined by multiplying:
(A) the difference obtained by subtracting the exercise price of a  share of Common Stock specified in the related Stock Option
from the Fair Market Value of a share of Common Stock on the date of exercise
of such Stock 

 12
 

Appreciation Right (or as
of such other date or as of the occurrence of such event as may have been
specified in the instrument evidencing the grant of the Stock Appreciation
Right), by (B) the number of shares as to which such Stock Appreciation
Right is exercised.

(c)                                  SARs Unrelated to Options.   The Administrator may grant
Stock Appreciation Rights unrelated to Stock Options. Section 6.4(b)(iii) will
govern the amount payable at exercise under such Stock Appreciation Right,
except that in lieu of an option exercise price the initial base amount
specified in the Award shall be used.

(d)                                 Limits.   Notwithstanding the foregoing, the
Administrator, in its discretion, may place a dollar limitation on the maximum
amount that will be payable upon the exercise of a Stock Appreciation Right.

(e)                                  Payments.   Payment of the amount determined under the
foregoing provisions may be made solely in whole shares of Common Stock valued
at their Fair Market Value on the date of exercise of the Stock Appreciation
Right or, alternatively, at the discretion of the Administrator, in cash or in
a combination of cash and shares of Common Stock as the Administrator deems
advisable. The Administrator has full discretion to determine the form in which
payment of a Stock Appreciation Right will be made and to consent to or
disapprove the election of a Recipient to receive cash in full or partial
settlement of a Stock Appreciation Right. If the Administrator decides to make
full payment in shares of Common Stock, and the amount payable results in a
fractional share, payment for the fractional share will be made in cash.

6.5                               Stock
Payments.

The Administrator may approve Stock Payments to any
Eligible Person on such terms and conditions as the Administrator may
determine. Stock Payments will replace cash compensation at the Fair Market
Value of the Common Stock on the date payment is due.

6.6                               Dividend
Equivalents.

The Administrator
may grant Dividend Equivalents to any Recipient who has received a Stock
Option, SAR or other Award denominated in shares of Common Stock. Dividend
Equivalents may be paid in cash, Common Stock or other Awards; the amount of
Dividend Equivalents paid other than in cash will be determined by the
Administrator by application of such formula as the Administrator may deem
appropriate to translate the cash value of dividends paid to the alternative
form of payment of the Dividend Equivalent. Dividend Equivalents will be
computed as of each dividend record date and will be payable to recipients
thereof at such time as the Administrator may determine. Notwithstanding the
foregoing, if it is intended that an Award qualify as Performance-Based
Compensation, and the amount of compensation the Recipient could receive under
the Award is based solely on an increase in value of the underlying stock after
the date of the grant or award, then the payment of any Dividend Equivalents
related to the Award shall not be made contingent on the exercise of the Award.

6.7                               Stock
Bonuses.

The Administrator
may issue Stock Bonuses to Eligible Persons on such terms and conditions as the
Administrator may determine.

6.8                               Stock
Sales.

The Administrator may sell to Eligible Persons shares
of Common Stock on such terms and conditions as the Administrator may
determine.

 13
 

6.9                               Phantom
Stock.

The Administrator
may grant Awards of Phantom Stock to Eligible Persons. Phantom Stock is a cash
payment measured by the Fair Market Value of a specified number of shares of Common
Stock on a specified date, or measured by the excess of such Fair Market Value
over a specified minimum, which may but need not include a Dividend Equivalent.

6.10                        Other
Stock-Based Benefits.

The Administrator is authorized to grant Other
Stock-Based Benefits. Other Stock-Based Benefits are any arrangements granted
under this Plan not otherwise described above that:  (a) by their terms might involve the
issuance or sale of Common Stock or other securities of the Company; or
(b) involve a benefit that is measured, as a whole or in part, by the
value, appreciation, dividend yield or other features attributable to a
specified number of shares of Common Stock or other securities of the Company.

ARTICLE VII

NON-EMPLOYEE DIRECTOR OPTIONS

7.1                               Grants
of Stock Options.

Immediately following each annual meeting of
stockholders of the Company, each Non-Employee Director who has served as a
director since his or her election or appointment and has been re-elected as a
director at such annual meeting shall automatically receive an option to
purchase up to 10,000 shares of the Company’s Common Stock. Each Non-Employee
Director who is appointed or elected other than at an annual meeting of
stockholders of the Company (whether by replacing a director who retires, resigns
or otherwise terminates his or her service as a director prior to the
expiration of his or her term or otherwise) shall automatically receive an
option to purchase shares of the Company’s Common Stock as of the date of such
appointment or election, consisting of a number of shares of Company Common
Stock determined by multiplying 10,000 by a fraction, the numerator of which is
the number of days from the date of grant to the date of the next scheduled
annual meeting of stockholders of the Company and the denominator of which is
365 (exclusive of fractional shares). The exercise price for all grants of
options granted under this Section 7.1
shall be equal to the Fair Market Value of the Company’s Common Stock on the
date of grant, subject to: (a) vesting as set forth in Section 7.2 and (b) adjustment as set forth in
this Plan.

7.2                               Vesting.

All grants of
options granted under Section 7.1
shall vest and become exercisable 100% on the day prior to the date of the next
annual meeting of stockholders following the grant date if the Recipient has
remained a director for the entire period from the date of grant to such
vesting date. Notwithstanding the foregoing, however, all grants of options
granted under Section 7.1 that have not
vested and become exercisable at the time the Recipient ceases to be a director
shall terminate.

7.3                               Exercise.

Non-Employee Director Options will be exercisable, and
the exercise price therefor shall be paid, in the same manner as provided
herein for other Stock Options.

7.4                               Term
of Options and Effect of Termination.

Notwithstanding
any other provision of the Plan, no Non-Employee Director Option granted under
the Plan shall be exercisable after the expiration of ten years from the
effective date of its grant. In the event that the Recipient of any
Non-Employee Director Options granted under the Plan shall cease to be a
director of the Company, all
grants of options granted under Section 7.1
of this Plan to such Recipient shall be exercisable, to the extent already
exercisable at the date such Recipient ceases to be a director and

 14
 

regardless of the reason the
Recipient ceases to be a director, for a period of 365 days after that date
(or, if sooner, until the expiration of the option according to its terms), and
shall then terminate. In the event of the death of a Recipient while
such Recipient is a director of the Company or within the period after
termination of such status during which he or she is permitted to exercise an
option, such option may be exercised by any person or persons designated by the
Recipient on a beneficiary designation form adopted by the Plan administrator
for such purpose or, if there is no effective beneficiary designation form on
file with the Company, by the executors or administrators of the Recipient’s
estate or by any person or persons who shall have acquired the option directly
from the Recipient by his or her will or the applicable laws of descent and
distribution.

7.5                               Amendment;
Suspension.

The Administrator may at
any time and from time to time in its discretion (a) change the number of
shares or vesting periods associated with the Non-Employee Director Options,
and (b) suspend and reactivate this Article VII.

ARTICLE
VIII

CHANGE IN CONTROL

8.1                               Provision
for Awards Upon Change in Control.

Unless otherwise set
forth in an Award Document or in this Section 8.1,
as of the effective time and date of any Change in Control, this Plan and any
then outstanding Awards (whether or not vested) will automatically terminate
unless:  (a) provision is made in
writing in connection with such transaction for the continuance of this Plan
and for the assumption of such Awards, or for the substitution for such Awards
of new awards covering the securities of a successor entity or an affiliate
thereof, with appropriate adjustments as to the number and kind of securities
and exercise prices or other measurement criteria, in which event this Plan and
such outstanding Awards will continue or be replaced, as the case may be, in
the manner and under the terms so provided; or (b) the Board otherwise
provides in writing for such adjustments as it deems appropriate in the terms
and conditions of the then-outstanding Awards (whether or not vested),
including, without limitation, (i) accelerating the vesting of outstanding
Awards, and/or (ii) providing for the cancellation of Awards and their
automatic conversion into the right to receive the securities, cash or other
consideration that a holder of the shares underlying such Awards would have
been entitled to receive upon consummation of such Change in Control had such
shares been issued and outstanding immediately prior to the effective date and
time of the Change in Control (net of the appropriate option exercise prices).
If, pursuant to the foregoing provisions of this Section 8.1,
this Plan and the Awards terminate by reason of the occurrence of a Change in
Control without provision for any of the action(s) described in clause
(a) or (b) hereof, then subject to Section 5.12
and Section 6.1(e), any Recipient
holding outstanding Awards will have the right, at such time prior to the
consummation of the Change in Control as the Board designates, to exercise or
receive the full benefit of the Recipient’s Awards to the full extent not
theretofore exercised, including any installments which have not yet become
vested. Notwithstanding anything to the contrary in this Section 8.1,
the vesting provisions of Section 7.2
or any other provision in the Plan, all Non-Employee Director Options granted
under the Plan shall automatically vest and become exercisable immediately
prior to any Change in Control if the optionee is a director of the Company at
that time.

ARTICLE
IX

DEFINITIONS

Capitalized terms used in
this Plan and not otherwise defined have the meanings set forth below:

“Administrator” means the Board as long as no
Committee has been appointed and is in effect and also means the Committee to
the extent that the Board has delegated authority thereto.

 15
 

“Affiliated  Entity” means any Parent Corporation of
the Company or Subsidiary Corporation of the Company or any other entity
controlling, controlled by, or under common control with the Company.

“Applicable Dividend Period” means (i) the period between
the date a Dividend Equivalent is granted and the date the related Stock
Option, SAR, or other Award is exercised, terminates, or is converted to Common
Stock, or (ii) such other time as the Administrator may specify in the
written instrument evidencing the grant of the Dividend Equivalent.

“Award” means any Stock Option, Performance Award,
Restricted Stock, Stock Appreciation Right, Stock Payment, Stock Bonus, Stock
Sale, Phantom Stock, Dividend Equivalent, or Other Stock-Based Benefit granted
or sold to an Eligible Person under this Plan, or any similar award granted by
the Company prior to the Effective Date and outstanding as of the Effective
Date that is governed by this Plan.

“Award Document” means the agreement or confirming
memorandum setting forth the terms and conditions of an Award.

“Board” means the Board of Directors of the Company.

“Change in Control” means the following and shall be
deemed to occur if any of the following events occurs:

(i)                                     Any
Person becomes the beneficial owner (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of fifty percent (50%) or more of either
the then outstanding shares of Common Stock or the combined voting power of the
Company’s then outstanding securities entitled to vote generally in the
election of directors; or

(ii)                                  Individuals
who, as of the effective date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board, provided,
however, that any individual who becomes a director after the
effective date hereof whose election, or nomination for election by the
Company’s stockholders, is approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered to be a
member of the Incumbent Board unless that individual was nominated or elected
by any person, entity or group (as defined above) having the power to exercise,
through beneficial ownership, voting agreement and/or proxy, twenty percent (20%)
or more of either the outstanding shares of Common Stock or the combined voting
power of the Company’s then outstanding voting securities entitled to vote
generally in the election of directors, in which case that individual shall not
be considered to be a member of the Incumbent Board unless such individual’s
election or nomination for election by the Company’s stockholders is approved
by a vote of at least two-thirds of the directors then comprising the Incumbent
Board; or

(iii)                               Consummation by the Company
of the sale or other disposition by the Company of all or substantially all of
the Company’s assets or a Reorganization of the Company with any other person,
corporation or other entity, other than

(A)                              a
Reorganization that would result in the voting securities of the Company
outstanding immediately prior thereto (or, in the case of a Reorganization that
is preceded or accomplished by an acquisition or series of related acquisitions
by any Person, by tender or exchange offer or otherwise, of voting securities
representing 5% or more of the combined voting power of all securities of the
Company, immediately prior to such acquisition or the first acquisition in such
series of acquisitions) continuing to represent, either by remaining
outstanding or by being converted into voting securities of another entity,
more than 50% of the combined voting power of the voting securities of the
Company or such other entity outstanding immediately after such Reorganization
(or series of related transactions involving such a Reorganization), or

 16
 

(B)                                a
Reorganization effected to implement a recapitalization or reincorporation of
the Company (or similar transaction) that does not result in a material change
in beneficial ownership of the voting securities of the Company or its
successor; or

(iv)                              Approval
by the stockholders of the Company or an order by a court of competent
jurisdiction of a plan of liquidation of the Company.

“Committee” means
any committee appointed by the Board to administer this Plan pursuant to Section 4.1.

“Common Stock” means
the common stock of the Company, $0.001 par value per share, as constituted on
the Effective Date, and as thereafter adjusted under Section 3.4.

“Company” means  Quidel
Corporation, a Delaware corporation.

“Dividend
Equivalent” means a right granted by the Company
under Section 6.6 to a holder of a Stock
Option, Stock Appreciation Right or other Award denominated in shares of Common
Stock to receive from the Company during the Applicable Dividend Period
payments equivalent to the amount of dividends payable to holders of the number
of shares of Common Stock underlying such Stock Option, Stock Appreciation
Right, or other Award.

“Effective Date”
means May 23, 2001, the date this Plan was first approved and adopted by
the Company’s stockholders.

“Eligible Person”
includes directors, including Non-Employee Directors, officers, employees,
consultants and advisors of the Company or of any Affiliated Entity; provided, however, that in order to be
Eligible Persons, consultants and advisors must render bona fide services to the Company or any
Affiliated Entity that are not in connection with capital-raising.

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

“Expiration Date”
means the tenth (10th) anniversary of the Effective Date.

“Fair Market
Value” of a share of the Company’s capital stock
as of a particular date means: (i) if the stock is listed on an
established stock exchange or exchanges (including for this purpose, the Nasdaq
Global Market), the closing sale price of the stock for such date on the
primary exchange upon which the stock trades, as measured by volume, as
published in The Wall Street Journal, or, if
no sale price was quoted for such date, then as of the next preceding date on
which such a sale price was quoted; or (ii) if the stock is not then
listed on an exchange (including the Nasdaq Global Market), the average of the
closing bid and asked prices per share for the stock in the over-the-counter
market on such date (in the case of (i) or (ii), subject to adjustment as
and if necessary and appropriate to set an exercise price not less than 100% of
the fair market value of the stock on the date an Award is granted); or
(iii) if the stock is not then listed on an exchange or quoted in the
over-the-counter market, an amount determined in good faith by the
Administrator, provided, however, that
(A) when appropriate, the Administrator in determining Fair Market Value
of capital stock of the Company may take into account such other factors as it
may deem appropriate under the circumstances, and (B) if the stock is
traded on the Nasdaq SmallCap Market and both sales prices and bid and asked
prices are quoted or available, the Administrator may elect to determine Fair
Market Value under either clause (i) or (ii) above. Notwithstanding
the foregoing, the Fair Market Value of capital stock for purposes of grants of
Incentive Stock Options must be determined in compliance with applicable
provisions of the IRC. The Fair Market Value of rights or property other than
capital stock of the Company means the fair market value thereof as determined
by the Administrator on the basis of such factors as it may deem appropriate.

“Incentive Stock
Option” means a Stock Option that qualifies as an
incentive stock option under Section 422 of the IRC.

 17
 

“IRC” means the
Internal Revenue Code of 1986, as amended.

“Just Cause
Dismissal” means a termination of a Recipient’s
employment for any of the following reasons: 
(i) the Recipient violates any reasonable rule or regulation
of the Board, the Company’s President or Chief Executive Officer or the
Recipient’s superiors that results in damage to the Company or any Affiliated
Entity or which, after written notice to do so, the Recipient fails to correct
within a reasonable time not exceeding 15 days; (ii) any willful
misconduct or gross negligence by the Recipient in the responsibilities
assigned to the Recipient; (iii) any willful failure to perform the
Recipient’s job as required to meet the objectives of the Company or any Affiliated
Entity; (iv) any wrongful conduct of a Recipient which has an adverse
impact on the Company or any Affiliated Entity or which constitutes a
misappropriation of assets of the Company or any Affiliated Entity;
(v) the Recipient’s performing services for any other person or entity
that competes with the Company while the Recipient is employed by the Company
without the written approval of the Chief Executive Officer of the Company; or
(vi) any other conduct that the Administrator reasonably determines
constitutes Just Cause for Dismissal; provided, however,
that if a Recipient is party to an employment agreement with the Company or any
Affiliated Entity providing for just cause dismissal (or some comparable
concept) of Recipient from Recipient’s employment with the Company or any
Affiliated Entity, “Just Cause Dismissal” for purposes of this Plan will have
the same meaning as ascribed thereto or to such comparable concept in such
employment agreement.

“Non-Employee
Director” means a director of the Company who
qualifies as a “Non-Employee Director” under Rule 16b-3 under the
Exchange Act.

“Non-Employee
Director Option” means a right to purchase stock
of the Company granted under Section 7.1
of this Plan.

“Nonqualified
Stock Option” means a Stock Option that is not an
Incentive Stock Option.

“Other Stock-Based
Benefits” means an Award granted under Section 6.10.

“Parent
Corporation” means any Parent Corporation as
defined in Section 424(e) of the IRC.

“Performance Award”  means an Award under Section 6.2, payable in cash, Common Stock or a
combination thereof, that vests and becomes payable over a period of time upon
attainment of preestablished, objective performance goals established in
connection with the grant of the Award. For this purpose, a preestablished,
objective performance goal may include one or more of the following performance
criteria:  (a) cash flow,
(b) earnings and earnings per share (including earnings before interest,
taxes, and amortization), (c) return on equity, (d) total Stockholder
return, (e) return on capital, (f) return on assets or net assets,
(g) aggregate product price and other product measures; (h) market
share or market penetration with respect to specific designated products and/or
geographic areas; (i) revenues, income or net income, (j) operating
income or net operating income, (k) operating margin, (l) return on
operating revenue, and (m) any other similar performance criteria.

“Performance-Based Compensation”
means performance-based compensation as described in
Section 162(m) of the IRC and the regulations issued thereunder. If
the amount of compensation an Eligible Person will receive under any Award is
not based solely on an increase in the value of Common Stock after the date of
grant or award, the Administrator, in order to qualify an Award as
performance-based compensation under Section 162(m) of the IRC, can
condition the grant, award, vesting, or exercisability of such an Award on the
attainment of a preestablished, objective performance goal including, but not
limited to, those preestablished, objective performance goals described in the
definition of Performance Award above.

“Permanent
Disability” means that the Recipient becomes
physically or mentally incapacitated or disabled so that the Recipient is
unable to perform substantially the same services as the Recipient performed
prior to incurring such incapacity or disability (the Company, at its option
and expense, being 

 18
 

entitled to retain a
physician to confirm the existence of such incapacity or disability, and the
determination of such physician to be binding upon the Company and the
Recipient), and such incapacity or disability continues for a period of three
consecutive months or six months in any 12-month period or such other
period(s) as may be determined by the Administrator with respect to any
Award, provided, however, that
for purposes of determining the period during which an Incentive Stock Option
may be exercised pursuant to Section 6.1(e),
Permanent Disability shall mean “permanent and total disability” as defined in Section 22(e) of
the IRC.

“Person”
means  any person,
entity or group, within the meaning of Section 13(d) or 14(d) of
the Exchange Act, but excluding (i) the Company and its subsidiaries,
(ii) any employee stock ownership or other employee benefit plan maintained
by the Company and (iii) an underwriter or underwriting syndicate that has
acquired the Company’s securities solely in connection with a public offering
thereof.

“Phantom Stock”
means an Award granted under Section 6.9.

“Plan”
means this 2001 Equity Incentive Plan of the Company.

“Plan Term”
means the period during which this Plan remains in effect (commencing the
Effective Date and ending on the Expiration
Date).

“Purchase Price”
means the purchase price (if any) to be paid by a Recipient for Restricted
Stock as determined by the Administrator (which price shall be at least equal
to the minimum price required under applicable laws and regulations for the
issuance of Common Stock which is nontransferable and subject to a substantial
risk of forfeiture until specific conditions are met).

“Recipient” means  a person who has received an Award.

“Reorganization”
means any merger, consolidation or other reorganization.

“Restricted Stock”  means Common Stock that is the subject of an Award made
under Section 6.3 and that is
nontransferable and subject to a substantial risk of forfeiture until specific
conditions are met, as set forth in this Plan and in any statement evidencing
the grant of such Award.

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

“Significant
Stockholder” is an individual who, at the time a
Stock Option is granted to such individual under this Plan, owns more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of any Parent Corporation or Subsidiary Corporation (after
application of the attribution rules set forth in
Section 424(d) of the IRC).

“Stock
Appreciation Right” or “SAR”
means a right granted under Section 6.4
to receive a payment that is measured with reference to the amount by which the
Fair Market Value of a specified number of shares of Common Stock appreciates
from a specified date, such as the date of grant of the SAR, to the date of
exercise.

“Stock Bonus”
means an issuance or delivery of unrestricted or restricted shares of Common
Stock under Section 6.7 as a bonus for services
rendered or for any other valid consideration under applicable law.

“Stock Payment”
means a payment in shares of the Company’s Common Stock under Section 6.5 to replace all or any portion of the
compensation or other payment (other than base salary) that would otherwise
become payable to the Recipient in cash.

“Stock Option”  means a right to purchase stock of the Company granted
under Section 6.1 or Section 7.1
of this Plan.

“Stock Sale”
means a sale of Common Stock to an Eligible Person under Section 6.8.

“Subsidiary
Corporation” means any
Subsidiary Corporation as defined in Section 424(f) of the IRC.

 19Exhibit 10.1

  
	
  

  	
  LIMITED LIABILITY PARTNERSHIP

  

 

CONFORMED
COPY

(incorporating amendments made on 5 December 2006

and 19 January 2007)

22 NOVEMBER 2006

 

For

SIRONA DENTAL
SYSTEMS, INC.

arranged by

J.P. MORGAN PLC

and

UBS LIMITED

with

JPMORGAN CHASE
BANK, N.A.

and

UBS LIMITED

acting as Original Lenders

and

J.P. MORGAN PLC

and

UBS LIMITED

acting as Bookrunner

and

J.P. MORGAN EUROPE
LIMITED

acting as Facility Agent

EUR 275,000,000
AND USD 300,000,000

SENIOR FACILITIES AGREEMENT

CONTENTS

	
  Clause

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Definitions And Interpretation

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  The Facilities

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Purpose

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Conditions Of Utilisation

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Utilisation Of Loans

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Utilisation By Way Of Bank Guarantees

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Bank Guarantees

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Optional Currencies

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Ancillary Facilities

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Repayment

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Prepayment And Cancellation

  	
   

  	
  46

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Interest

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Interest Periods And Terms

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Changes To The Calculation Of Interest

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Fees

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Tax Gross Up And Indemnities

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Increased Costs

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Other Indemnities

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Mitigation By The Lenders

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Costs And Expenses

  	
   

  	
  70

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Guarantee And Indemnity

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Representations

  	
   

  	
  78

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  Information Undertakings

  	
   

  	
  84

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  Financial Covenants

  	
   

  	
  89

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  General Undertakings

  	
   

  	
  93

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  Events Of Default

  	
   

  	
  107

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  Changes To The Lenders

  	
   

  	
  114

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
  Changes To The Obligors

  	
   

  	
  118

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
   

  	
  Role Of The Facility Agent, The Mandated Lead
  Arrangers, The Issuing Bank And Others

  	
   

  	
  121

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
   

  	
  Conduct Of Business By The Finance Parties

  	
   

  	
  127

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
   

  	
  Sharing Among The Finance Parties

  	
   

  	
  127

  

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
   

  	
  Payment Mechanics

  	
   

  	
  130

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
   

  	
  Set Off

  	
   

  	
  132

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
   

  	
  Notices

  	
   

  	
  133

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35.

  	
   

  	
  Calculations And Certificates

  	
   

  	
  136

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36.

  	
   

  	
  Partial Invalidity

  	
   

  	
  136

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37.

  	
   

  	
  Remedies And Waivers

  	
   

  	
  136

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38.

  	
   

  	
  Amendments And Waivers

  	
   

  	
  137

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39.

  	
   

  	
  Counterparts

  	
   

  	
  140

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40.

  	
   

  	
  USA Patriot Act

  	
   

  	
  140

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41.

  	
   

  	
  Governing Law

  	
   

  	
  141

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42.

  	
   

  	
  Enforcement

  	
   

  	
  141

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43.

  	
   

  	
  Waiver Of Jury Trial

  	
   

  	
  141

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 1 The
  Original Lender

  	
   

  	
  143

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 2 Conditions
  Precedent

  	
   

  	
  144

  
	
   

  	
   

  	
  Part I

  	
  Conditions Precedent To Delivery Of A Utilisation
  Request

  	
   

  	
  144

  
	
   

  	
   

  	
  Part IA

  	
  Conditions Precedent To Drawdown

  	
   

  	
  145

  
	
   

  	
   

  	
  Part II

  	
  Conditions Precedent Required To Be Delivered By An
  Additional Obligor

  	
   

  	
  147

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 3 Requests

  	
   

  	
  150

  
	
   

  	
   

  	
  Part IA 

  	
  Utilisation Request Loans

  	
   

  	
  150

  
	
   

  	
   

  	
  Part IB 

  	
  Utilisation Request Bank Guarantees

  	
   

  	
  151

  
	
   

  	
   

  	
  Part II

  	
  Selection Notice Applicable To A Term Loan

  	
   

  	
  152

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 4 Mandatory
  Cost Formulae

  	
   

  	
  153

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 5 Form Of
  Transfer Certificate

  	
   

  	
  156

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 6 Form Of
  Accession Letter

  	
   

  	
  158

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 7 Form Of
  Resignation Letter

  	
   

  	
  159

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 8 Form Of
  Compliance Certificate

  	
   

  	
  160

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 9
  Timetables

  	
   

  	
  162

  
	
   

  	
   

  	
  Part I

  	
  Loans

  	
   

  	
  162

  
	
   

  	
   

  	
  Part II

  	
  Bank Guarantees

  	
   

  	
  164

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 10 Form Of
  Letter Of Credit

  	
   

  	
  165

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 11
  Guarantee Principles

  	
   

  	
  168

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 12 Certain
  Funds Defaults

  	
   

  	
  174

  
							

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 13 Overview
  Loans And Securities Subsidiaries

  	
   

  	
  175

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 14 Form Of
  Certificate

  	
   

  	
  177

  

 

 

THIS
AGREEMENT is dated 22 November 2006 and made

BETWEEN:

(1)                                  SIRONA DENTAL SYSTEMS, INC., an
incorporated company with business address 30-00 47th Avenue, Long Island City,
New York, NY 11101 incorporated in Delaware with tax payer ID 11-3374812  as original guarantor (the “Company”);

(2)                                  SCHICK TECHNOLOGIES, INC., an incorporated
company with business address 30-00 47th Avenue, Long Island City, New York, NY
11101 incorporated in New York with tax payer ID 11-3106069 as original
borrower and original guarantor (“Schick
Technologies, Inc.”);

(3)                                  SIRONA DENTAL SYSTEMS GMBH, a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated in the Federal Republic of
Germany, having its business address at Fabrikstr. 31, 64625 Bensheim, Germany,
which is registered in the commercial register (Handelsregister) of the local court (Amtsgericht) of Darmstadt under HRB 24948
as original borrower and original guarantor (“Sirona
Dental Systems GmbH”);

(4)                                  SIRONA DENTAL SERVICES GMBH, a limited
liability company (Gesellschaft mit
beschränkter Haftung) incorporated in the Federal Republic of
Germany, having its business address at Fabrikstr. 31, 64625 Bensheim, Germany,
which is registered in the commercial register (Handelsregister) of the local court (Amtsgericht) of Darmstadt  under HRB 25819 as original borrower and
original guarantor (“Sirona Dental Services
GmbH”);

(5)                                  SIRONA DENTAL SYSTEMS LLC, a limited
liability company with business address 4835 Sirona Drive, Charolotte, NC
28273, PO Box 410100 incorporated in the State of North of Carolina with tax
payer ID 56-2078958 as original guarantor (“Sirona
Dental Systems LLC”);

(6)                                  SIRONA HOLDING GMBH, a limited liability
company (Gesellschaft mit beschränkter
Haftung) incorporated in the Federal Republic of Germany, having its
business address at Fabrikstr. 31, 64625 Bensheim, Germany, which is registered
in the commercial register (Handelsregister)
of the local court (Amtsgericht)
of Darmstadt under HRB 25817 as original guarantor (Sirona Holding GmbH”);

(7)                                  SIRONA IMMOBILIEN GMBH, a limited liability
company (Gesellschaft mit beschränkter
Haftung) incorporated in the Federal Republic of Germany, having its
business address at Fabrikstr. 31, 64625 Bensheim, Germany, which is registered
in the commercial register (Handelsregister)
of the local court (Amtsgericht)
of Darmstadt under HRB 24987 as original guarantor (“Sirona Immobilien GmbH”);

(8)                                  J.P. MORGAN PLC and UBS LIMITED as mandated lead arrangers (the
“Mandated Lead Arrangers”);

(9)                                  JPMORGAN CHASE BANK, N.A. and UBS LIMITED as original lenders (the “Original Lenders”); and

 

 1
 

 

(10)                            J.P. MORGAN EUROPE LIMITED as Facility
Agent of the Lenders (the “Facility Agent”).

IT IS
AGREED as follows:

SECTION
1

INTERPRETATION

1.                                      DEFINITIONS
AND INTERPRETATION

1.1                               Definitions

In this Agreement:

“Accession Letter” means a
document substantially in the form set out in Schedule 6 (Form of Accession Letter).

“Accounting Principles”
means generally accepted accounting principles in the United States of America.

“Acquisition” means the
acquisition by Blitz F04-506 GmbH of the shares of Sirona Dental Systems
Beteiligungs-und Verwaltungs GmbH pursuant to a sale and purchase agreement
dated 4 May 2005.

“Acquisition Costs” means
all non-periodic fees, costs and expenses, stamp, registration and other
Taxes incurred by the Company or any other member of the Group in connection
with the Acquisition up to a maximum aggregate amount of EUR 42,000,000
and other such fees, costs, expenses and Tax relating to acquisitions permitted
under Clause 25.7 (Acquisitions).

“Additional Borrower”
means a company which becomes an Additional Borrower in accordance with Clause
28 (Changes to the Obligors).

“Additional Cost Rate” has
the meaning given to it in Schedule 4 (Mandatory
Cost Formulae).

“Additional Guarantor”
means a company which becomes a Guarantor in accordance with Clause 28 (Changes to the Obligors).

“Additional Obligor” means
an Additional Borrower or an Additional Guarantor.

“Affiliate” means, in
relation to any person, a Subsidiary of that person or a Holding Company of
that person or any other Subsidiary of that Holding Company.

“Agent’s Spot Rate of Exchange”
means the Facility Agent’s spot rate of exchange for the purchase of the
relevant currency with the Base Currency in the London foreign exchange market
on or about 11:00 a.m. on a particular day.

“Ancillary Commitment”
means, in relation to an Ancillary Lender and an Ancillary Facility the
commitment of that Lender under the Ancillary Facility as notified to the
Facility Agent pursuant to Clause 9.3 (Approval
process) to the extent that amount is

 

 2
 

 

not cancelled or reduced under this Agreement or the Ancillary
Documents relating to that Ancillary Facility.

“Ancillary Document” means
each document relating to or evidencing the terms of an Ancillary Facility.

“Ancillary Facility” means
any ancillary facility made available upon request as described in Clause 9 (Ancillary Facilities).

“Ancillary Lender” means
each Lender (or Affiliate of a Lender) which makes available an Ancillary
Facility in accordance with Clause 9 (Ancillary
Facilities).

“Ancillary Outstandings”
means, at any time, in relation to an Ancillary Facility the aggregate of the
following amounts outstanding under that Ancillary Facility then in force:

(a)                                  the
principal amount under each overdraft facility and on demand short term loan
facility calculated on a net basis;

(b)                                 the
face amount of each guarantee, bond and letter of credit under each guarantee,
bonding or letter of credit facility; and

(c)                                  the
amount fairly representing the aggregate exposure (excluding interest and
similar charges) of that Ancillary Lender under each other type of
accommodation provided under that Ancillary Facility as determined by such
Ancillary Lender in accordance with the relevant Ancillary Document or market
practice.

“Anti-Terrorism Law” means
each of:

(a)                                  Executive
Order No. 13224 of September 23, 2001 - Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism
(the Executive Order);

(b)                                 the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (commonly known
as the USA Patriot Act);

(c)                                  the
Money Laundering Control Act of 1986, Public Law 99-570;

(d)                                 the
International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq, the
Trading with the Enemy Act, 50 U.S.C. App. §§ 1 et seq, any Executive Order or
regulation promulgated thereunder and administered by the Office of Foreign
Assets Control (“OFAC”) of the
U.S. Department of the Treasury; and

(e)                                  any
law or regulation relating to economic sanctions, terrorism or money laundering
enacted in the United States of America subsequent to the date of this
Agreement.

 

 3
 

 

“Authorisation” means an
authorisation, consent, approval, resolution, licence, exemption, filing,
notarisation or registration.

“Available Ancillary Commitment”
means in relation to an Ancillary Facility, an Ancillary Lender’s Ancillary
Commitment less the Ancillary Outstandings in relation to that Ancillary
Facility.

“Availability Period”
means:

(a)                                  in
relation to each Term Facility, the period from and including the date of this
Agreement to and including 45 days after the date of this Agreement;  and

(b)                                 in
relation to the Revolving Facility, the period from and including the date of
this Agreement to and including the day which is one month prior to the
Termination Date for the Revolving Facility.

“Available Commitment”
means, in relation to a Facility, a Lender’s Commitment under that Facility
minus (subject as set out below):

(a)                                  the
Base Currency Amount of its participation in any outstanding Utilisations under
that Facility and, in the case of the Revolving Facility only, the Base
Currency Amount of the aggregate of its Ancillary Commitments; and

(b)                                 in
relation to any proposed Utilisation, the Base Currency Amount of its
participation in any other Utilisations that are due to be made under that
Facility on or before the proposed Utilisation Date and, in the case of the
Revolving Facility only, the Base Currency Amount of its Ancillary Commitment
in relation to any new Ancillary Facility that is due to be made available on
or before the proposed Utilisation Date.

For the purposes of calculating a Lender’s Available Commitment in relation
to any proposed Utilisation under the Revolving Facility only, the following
amounts shall not be deducted from a Lender’s Commitment under that Facility:

(i)                                     that
Lender’s participation in any Revolving Utilisations that are due to be repaid
or prepaid on or before the proposed Utilisation Date; and

(ii)                                  that
Lender’s Ancillary Commitments to the extent that they are due to be reduced or
cancelled on or before the proposed Utilisation Date.

“Available Facility”
means, in relation to a Facility, the aggregate for the time being of each
Lender’s Available Commitment in respect of that Facility.

“Bank Guarantee” means:

(a)                                  a
letter of credit, substantially in the form set out in Schedule 10 (Form of Letter of Credit) or in any other
form requested by the Company and agreed by the Facility Agent (with the prior
consent of the Majority Lenders) and the Issuing Bank; or

 

 4
 

 

(b)                                 any
other guarantee, bond, indemnity, letter of credit, documentary or other credit
or any other instrument of suretyship or payment, issued, undertaken or made by
the Issuing Bank under the Revolving Facility in a form requested by the
Company and agreed by the Facility Agent (with the prior consent of the
Majority Lenders) and the Issuing Bank.

“Bank Guarantee Proportion”
means in relation to a Lender in respect of any Bank Guarantee, the proportion
(expressed as a percentage) borne by that Lender’s Available Commitment to the
Available Facility in relation to the Revolving Facility immediately prior to
the issue of that Bank Guarantee, adjusted to reflect any assignment or
transfer under this Agreement to or by that Lender or pursuant to Clause 31.6 (Commitment  Exchange following acceleration).

“Base Currency” means:

(a)                                  in
the case of Facility A1 and the Revolving Facility, USD; and

(b)                                 in
the case of Facility A2, euro.

“Base Currency Amount”
means:

(a)                                  in
relation to a Utilisation, the amount specified in the Utilisation Request
delivered by a Borrower for that Utilisation (or, if the amount requested is
not denominated in the Base Currency, that amount converted into the Base
Currency at the Agent’s Spot Rate of Exchange on the date which is three
Business Days before the Utilisation Date or, if later, on the date the
Facility Agent receives the Utilisation Request); and

(b)                                 in
relation to an Ancillary Commitment, the amount specified in the notice
delivered to the Facility Agent by the Company pursuant to sub-paragraph (a)
(v) of Clause 9.3 (Approval Process)
(or, if the amount specified is not denominated in the Base Currency, that
amount converted into the Base Currency at the Agent’s Spot Rate of Exchange on
the date which is three Business Days before the Commencement Date for that
Ancillary Facility or, if later, the date the Facility Agent receives the
notice of the Ancillary Commitment),

as adjusted to reflect any repayment, prepayment, consolidation or
division of a Utilisation, or (as the case may be) cancellation or reduction of
an Ancillary Facility.

“Borrower” means an
Original Borrower or an Additional Borrower unless it has ceased to be a
Borrower in accordance with Clause 28 (Changes
to the Obligors).

“Break Costs” means the
amount (if any) by which:

(a)                                  the
interest (excluding, for the avoidance of doubt, the Margin and Mandatory Cost)
which a Lender should have received for the period from the date of receipt of
all or any part of its participation in a Loan or Unpaid Sum to the last day of
the current Interest Period in respect of that Loan or Unpaid Sum,

 

 5
 

 

had the principal amount or Unpaid Sum received been paid on the last
day of that Interest Period;

exceeds:

(b)                                 the
amount which that Lender would be able to obtain by placing an amount equal to
the principal amount (including for the avoidance of doubt any component in
respect of interest and fees) or Unpaid Sum received by it on deposit with a
leading bank in the Relevant Interbank Market for a period starting on the
Business Day of receipt (in the case of prepayments of which the Facility Agent
has at least 2 Business Days notice), and on the Business Day following receipt
or recovery (in the case where less than 2 Business Days notice is given) and
ending on the last day of the current Interest Period.

“Business Day” means a day
(other than a Saturday or Sunday) on which banks are open for general business
in London, Frankfurt am Main and New York, and:

(a)                                  (in
relation to any date for payment or purchase of a currency other than euro) the
principal financial centre of the country of that currency; or

(b)                                 (in
relation to any date for payment or purchase of euro) any TARGET Day.

“Business Plan” means the
financial model including profit and loss, balance sheet and cash flow
projections from the date of this Agreement for a period of three years, in
agreed form relating to the Group.

“Cash” means, at any time,
cash at bank denominated in Swiss Francs, sterling, dollars, euro, Japanese
Yen, Canadian dollar or any other currency which is the lawful currency of any
other member state of the OECD (or any other country in which a member of the
Group operates) and credited to an account in the name of a member of Group and
to which, in each case, such member of the Group is alone beneficially entitled
and for so long as:

(a)                                  that
cash is repayable on demand or within 30 days of demand;

(b)                                 repayment
of that cash is not contingent on the prior discharge of any other indebtedness
of any member of the Group or of any other person whatsoever or on the
satisfaction of any other condition;

(c)                                  there
is no Security over that cash except as permitted hereunder; and

(d)                                 such
cash is freely and immediately available or within 30 days of demand to be
applied in repayment or prepayment of the Facilities, whether as a result of
dividend payments, loans or other payments made to the relevant member of the
Group.

“Cash Equivalent Investments”
means:

(a)                                  debt
securities denominated in Swiss Francs, sterling, dollars, euro, Japanese Yen,
Canadian dollar or any other currency which is the lawful currency of

 

 6
 

 

any other member state of the OECD issued by or
unconditionally guaranteed by Switzerland, the United Kingdom, the United
States of America, a Participating Member State, Japan or any other member
state of the OECD which are not convertible into any other form of security and
having not more than one year to final maturity;

(b)                                 debt
securities denominated in Swiss Francs, sterling, dollars, euro, Japanese Yen,
Canadian dollar or any other currency which is the lawful currency of any
member state of the OECD which are not convertible into any other form of
security and having not more than one year to final maturity, at all times
rated P-1 by Moody’s or A-1 by Standard & Poors’ and which are not issued
or guaranteed by any member of the Group;

(c)                                  certificates
of deposit denominated in Swiss Francs, sterling, dollars, euro, Japanese Yen,
Canadian dollar or any other currency which is the lawful currency of any
member state of the OECD issued by, and acceptances by, banking institutions
authorised under applicable legislation of Switzerland, the United Kingdom, the
United States of America, a Participating Member State, Japan or any other
member state of the OECD rated P-1 by Moody’s or A-1 by Standard & Poors’;

(d)                                 any
investment accessible within 30 days in money market funds which have a credit
rating of either A-1 or higher by Standard & Poors’ or Fitch Rating Ltd or
P-1 or higher by Moody’s and which invest substantially all their assets in
securities of the types described in paragraphs (a) to (c) above; or

(e)                                  other
securities (if any) approved in writing by the Facility Agent,

in each case, to which any member of the Group is beneficially entitled
at that time and which is not issued or guaranteed by any member of the Group
or subject to any Security (other than as permitted hereunder).

“Certain Funds Default”
means the occurrence of (i) a Change of Control (as defined in Clause 11.7 (Exit) or (ii) any event or circumstance
mentioned under any of the paragraphs listed in Schedule 12 (Certain Funds Defaults).

“Certain Funds Period”
means the period from the date of this Agreement until and including the
earlier of (i) the Closing Date and (ii) the last day of the Availability
Period for Facility A1 and Facility A2 provided
that such period shall be suspended at all times while the relevant
parties are negotiating as envisaged by paragraph (b) in Schedule 12 (Certain Funds Defaults).

“Closing Date” means the
date on which first utilisation of any of the Facilities occurs.

“Code” means, at any date,
the U.S. Internal Revenue Code of 1986 and the regulations promulgated and the
judicial and administrative decisions rendered under it, all as the same may be
in effect at such date.

 

 7
 

 

“Commencement Date” means,
in relation to an Ancillary Facility, the date on which that Ancillary Facility
is first made available, which date shall be a Business Day within the
Availability Period for the Revolving Facility.

“Commitment” means a
Facility A1 Commitment, a Facility A2 Commitment or a Revolving Commitment.

“Commitment Fee” means any
fees payable by the Company pursuant to Clause 15.1 (Commitment Fee).

“Compliance Certificate”
means a certificate substantially in the form set out in Schedule 8 (Form of Compliance Certificate).

“Consolidated Adjusted EBITDA”
has the meaning given to such term in Clause 24.1 (Financial definitions).

“Consolidated Total Net Debt”
has the meaning given to such term in Clause 24.1 (Financial definitions).

“Default” means an Event
of Default or any event or circumstance which would (with the expiry of a grace
period or the giving of notice under the Finance Documents or any combination
of any of the foregoing) be an Event of Default.

“Environmental Claim”
means any claim, proceeding or investigation by any person in respect of any
Environmental Law.

“Environmental Law” means
any applicable law or regulation which relates to:

(a)                                  the
pollution or protection of the environment;

(b)                                 harm
to or the protection of human health; or

(c)                                  the
health of animals or plants.

“Environmental Permits”
means any permit, licence, consent, approval and other authorisation and the
filing of any notification, report or assessment required under any
Environmental Law for the operation of the business of any member of the Group
conducted on or from the properties owned or used by any member of the Group.

“EURIBOR” means, in
relation to any Loan in euro:

(a)                                  the
applicable Screen Rate; or

(b)                                 (if
no Screen Rate is available for the Interest Period of that Loan) the
arithmetic mean of the rates (rounded upwards to four decimal places) as
supplied to the Facility Agent at its request quoted by the Reference Banks to
leading banks in the European interbank market,

as of the Specified Time on the Quotation Day for the offering of
deposits in euro for a period comparable to the Interest Period of the relevant
Loan.

 

 8
 

 

“ERISA” means, at any
date, the United States Employee Retirement Income Security Act of 1974 and the
regulations promulgated and rulings issued thereunder, all as the same may be
in effect at such date.

“ERISA Affiliate” means
any person that for purposes of Title I and Title IV of ERISA and Section 412
of the Code would be deemed at any relevant time to be a single employer with
an Obligor, pursuant to Section 414(b), (c), (m) or (o) of the Code or Section
4001 of ERISA.

“Event of Default” means
any event or circumstance specified as such in Clause 26 (Events of Default).

“Existing Mezzanine Facility
Agreement” means the mezzanine facility agreement dated 30 June 2005
(as amended) between, inter alia,
Blitz F04-506 GmbH as original borrower and J.P. Morgan Europe Limited as
facility agent.

“Existing Senior Facilities Agreement”
means the senior facility agreement dated 30 June 2005 (as amended) between, inter alia, Blitz F04-506 GmbH as original
borrower and J.P. Morgan Europe Limited as facility agent.

“Expiry Date” means for a
Bank Guarantee, the last day of its Term.

“Facility” means Facility
A1, Facility A2 or the Revolving Facility.

“Facility A1” means the
term loan facility made available under this Agreement as described in
sub-paragraph (a) (i) of Clause 2.1 (The
Facilities).

“Facility A1 Borrower”
means Schick Technologies, Inc.

“Facility A1 Commitment”
means:

(a)                                  in
relation to an Original Lender, the amount in the Base Currency set opposite
its name under the heading “Facility A1 Commitment” in Schedule 1 (The Original Lenders) and the amount of any
other Facility A1 Commitment transferred to it under this Agreement; and

(b)                                 in
relation to any other Lender, the amount in the Base Currency of any Facility
A1 Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this
Agreement.

“Facility A1 Loan” means a
loan made or to be made under Facility A1 or the principal amount outstanding
for the time being of that loan.

“Facility A1 Repayment Date”
means each of the dates specified in Clause 10.1 (Repayment of Facility Term Loans) as a Facility A1 Repayment
Date.

“Facility A1 Repayment Instalment”
means each instalment for repayment of the Facility A1 Loans referred to in
Clause 10.1 (Repayment of Facility Term
Loans).

 

 9
 

 

“Facility A2” means the term
loan facility made available under this Agreement as described in sub-paragraph
(a) (ii) of Clause 2.1 (The Facilities).

“Facility A2 Borrower”
means Sirona Dental Services GmbH.

“Facility A2 Commitment”
means:

(a)                                  in
relation to an Original Lender, the amount in the Base Currency set opposite
its name under the heading “Facility A2
Commitment” in Schedule 1 (The
Original Lenders) and the amount of any other Facility A2 Commitment
transferred to it under this Agreement; and

(b)                                 in
relation to any other Lender, the amount in the Base Currency of any Facility
A2 Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this
Agreement,

“Facility A2 Loan” means a
loan made or to be made under Facility A2 or the principal amount outstanding
for the time being of that loan.

“Facility A2 Repayment Date”
means each of the dates specified as a Facility A2 Repayment Date in Clause
10.1 (Repayment of Facility Term Loans).

“Facility A2 Repayment Instalment”
means each instalment for repayment of the Facility A2 Loans referred to in
Clause 10.1 (Repayment of Facility Term
Loans).

“Facility Office” means
the office or offices notified by a Lender or the Issuing Bank to the Facility
Agent in writing on or before the date it becomes a Lender or the Issuing Bank
(or, following that date, by not less than five Business Days’ written notice)
as the office or offices through which it will perform its obligations under
this Agreement.

“Fee Letter” means:

(a)                                  any
letter or letters between the Mandated Lead Arrangers and the Company (or the
Facility Agent and the Company) setting out any of the fees referred to in
Clause 15 (Fees); and

(b)                                 any
other agreement setting out fees referred to in Clause 7.2 (Fee payable in respect of Bank Guarantees)
or Clause 9.7 (Interest, Commitment
Commission and Fees on Ancillary Facilities).

“Finance Document” means
this Agreement, any Fee Letter, any Accession Letter, any Resignation Letter,
any Compliance Certificate, any Utilisation Request, any Selection Notice, the
Subordination Agreement, any Ancillary Document, the Pooling Agreement and any
other document designated as a “Finance
Document” by the Facility Agent and the Company.

“Finance Party” means the
Facility Agent, the Mandated Lead Arrangers, a Lender, the Issuing Bank or any
Ancillary Lender.

 

 10
 

 

“Financial Indebtedness”
means any indebtedness for or in respect of:

(a)                                  any
monies borrowed or raised;

(b)                                 any
amount raised by acceptance under any acceptance credit facility or dematerialised
equivalent or by a bill discounting or factoring credit facility;

(c)                                  any
amount raised pursuant to any note purchase facility or the issue of bonds,
notes (other than credit notes issued in the ordinary course of trade),
debentures, loan stock or any similar instrument;

(d)                                 the
amount of any liability in respect of any lease or hire purchase contract or
other agreement which would, in accordance with the Accounting Principles, be
treated as a finance or capital lease;

(e)                                  receivables
sold or discounted (other than any receivables to the extent they are sold on a
non-recourse basis);

(f)                                    any
derivative transaction entered into in connection with protection against or
benefit from fluctuation in any rate or price (and, when calculating the value
of any derivative transaction, only the marked to market value shall be taken
into account);

(g)                                 any
counter indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument issued by a
bank or financial institution;

(h)                                 any
amount raised by the issue of shares which are redeemable on or before the
Termination Date;

(i)                                     any
amount of any liability under an advance or deferred purchase agreement if (i)
one of the primary reasons behind the entry into the agreement is to raise
finance or (ii) the agreement is in respect of the supply of assets or services
and payment is due more than 180 days from the date on which the goods were
delivered or services were performed other than any liability arising under the
U.S. Exclusivity Agreement;

(j)                                     any
amount raised under any other transaction (including any forward sale or
purchase agreement) required to be accounted for as a borrowing (but excluding
for the avoidance of doubt any employee profit sharing scheme) to the extent
that item is treated as debt in the Group’s balance sheet; and

(k)                                  (without
double counting) the amount of any liability in respect of any guarantee or
indemnity or similar assurance against financial loss for any of the items
referred to in the preceding paragraphs of this definition and any agreement to
maintain the solvency of any person whether by investing in, lending to or
purchasing the assets of such person.

“Financial Quarter” has
the meaning given to that term in Clause 24.1 (Financial
definitions).

 

 11
 

 

“Funds Flow Statement”
means the funds flow statement delivered by the Company to the Facility Agent
pursuant to paragraph 2(c) of Part 1 of Schedule 2 (Conditions Precedent to Delivery of a Utilisation Request)
in form and substance satisfactory to the Facility Agent.

“General Investments Threshold”
means, at any time EUR 100,000,000.

“German Borrower” has the
meaning given to that term in paragraph (h) of Clause 21.9 (Limitation on Payment Obligations by German
Guarantors and limitation regarding LTIBRs).

“Group” means the Company,
and each of its respective Subsidiaries for the time being.

“Gross Assets” means (by
reference to the Accounting Principles), restricted short term investments,
accounts receivable, net inventories, prepaid expenses and other current
assets, property, plant and equipment and intangible assets (but excluding
goodwill and all other assets or step up amounts that have been capitalised as
a result of a purchase price allocation)

“Guarantee Principles”
means the principles set out in Schedule 11 (Guarantee
Principles).

“Guarantor” means each
Original Guarantor and each Additional Guarantor unless it has ceased to be a
Guarantor in accordance with Clause 28 (Changes
to the Obligors).

“Holding Company” means,
in relation to a company or corporation, any other company or corporation in
respect of which it is a Subsidiary.

“Incremental Facility”
means the increased amount of the existing Facilities or a term loan facility
or a revolving loan facility made available under this Agreement as described
in sub-paragraph (a)(iv) of Clause 2.1 (The
Facilities).

“Incremental Facility Commitment”
has the meaning given to it in Clause 2.2 (Incremental
Facility).

“Incremental Facility Loan”
means a loan made or to be made under the Incremental facility or the principal
amount outstanding for the time being of that loan.

“Information Memorandum”
means the document in the form approved by the Company concerning the Group
which is to be prepared in relation to this transaction, approved by the
Company and distributed by the Mandated Lead Arrangers prior to the Syndication
Date in connection with the syndication of the Facilities.

“Initial Investors” means
(i) Madison Dearborn Partners, (ii) funds managed and/or advised by Madison
Dearborn Partners and (iii) MDCP IV Global Investments LP, Beecken Petty O’Keefe
Fund II, L.P., Northwestern University, John W. Madigan, Harry M. Jansen
Kraemer, Jr., and K&E Investment Partners, LLC - 2004-B DIF and (iv) any of
the following funds whose investment is to be made on or shortly after the
Closing Date: Beecken Petty O’Keefe QP Fund II, L.P., Beecken Petty O’Keefe

 

 12
 

 

Executive Fund II, L.P. and (v) certain members of management of the
Company and/or affiliates of EQT Partners AB and (vi) any other persons agreed
to by the Lenders.

“Intellectual Property”
means:

(a)                                  any
patents, trade marks, service marks, designs, business names, copyrights,
design rights, moral rights, inventions, confidential information, know-how and
other intellectual property rights and interests, whether registered or
unregistered; and

(b)                                 the
benefit of all applications and rights to use such assets of each member of the
Group.

“Interest Period” means,
in relation to a Loan, each period determined in accordance with Clause 13 (Interest Periods and Terms) and, in
relation to an Unpaid Sum, each period determined in accordance with Clause
12.4 (Default Margin).

“Invested Funds” means the
aggregate amount of all monies invested, paid, allocated, guaranteed,
indemnified, applied or spent since the date hereof under sub-paragraph b(v) of
Clause 25.7 (Acquisitions),
paragraph (b) of Clause 25.8 (Joint ventures),
sub-paragraph (b)(vii) of Clause 25.14 (Loans
and credit) and/or sub-paragraph (b)(v) of Clause 25.15 (No Guarantees or indemnities) but
deducting any such amounts which are repaid, no longer outstanding and
investment returns on investments made pursuant to the foregoing paragraphs.

“Investors” means funds
managed and advised by Madison Dearborn Partners and other investors selected
by Madison Dearborn Partners as part of the equity (and quasi-equity)
syndication of the equity and quasi-equity funding for the Acquisition (subject
to Madison Dearborn Partners at all times owning a majority interest in, and
being able to direct the affairs and control the composition of the board of
directors or equivalent body of, such investors), and each of their or any
subsequent successors or assignees or transferees.

“Issuing Bank” means any
Lender which has notified the Facility Agent that it has agreed to the Company’s
request to be an Issuing Bank pursuant to the terms of this Agreement (and if
more than one Lender has so agreed such Lenders whether acting individually or
together shall be referred to as the “Issuing
Bank”).

“Joint Venture” means any
joint venture entity, whether a company, unincorporated firm, undertaking,
association, joint venture or partnership or any other entity.

“Legal Opinions” means the
legal opinions delivered to the Facility Agent pursuant to Clause 4.1 (Initial Conditions Precedent) and
paragraph 9 of Part II of Schedule 2 (Conditions
Precedent).

 

 13
 

 

“Legal Reservations” means

(a)                                  the
principle that equitable remedies may be granted or refused at the discretion
of a court and the limitation of enforcement by laws relating to insolvency,
reorganisation and other laws generally affecting the rights of creditors;

(b)                                 the
time barring of claims under the Limitation Acts;

(c)                                  similar
principles, rights and defences under the laws of any Relevant Jurisdiction;
and

(d)                                 any
general principles which are set out in the qualifications as to matters of law
in the Legal Opinions.

“Lender” means:

(a)                                  any
Original Lender; and

(b)                                 any
bank, financial institution, trust, fund or other entity which has become a
Party in accordance with Clause 27 (Changes
to the Lenders),

which in each case has not ceased to be a Party in accordance with the
terms of this Agreement.

“LIBOR” means, in relation
to any Loan:

(a)                                  the
applicable Screen Rate; or

(b)                                 (if
no Screen Rate is available for the currency or Interest Period of that Loan)
the arithmetic mean of the rates (rounded upwards to four decimal places) as
supplied to the Facility Agent at its request quoted by the Reference Banks to
leading banks in the London interbank market,

as of the Specified Time on the Quotation Day for the offering of
deposits in the currency of that Loan and for a period comparable to the
Interest Period for that Loan.

“LTIBR” means any long
term interest-bearing receivables as set out in the decrees of the German Federal
Ministry of Finance (Bundesfinanzministerium)
of 15 July 2004 (IV A2-S 2742a-20/04), paragraphs 20 and 37, and of 22 July
2005 (IV-B7-S2742a-31/05), or as set out in any future law, administrative
decree, guideline or other pronouncement which overrules the aforementioned
decrees.

“Loan” means a Term Loan
or a Revolving Loan.

“LMA” means the Loan
Market Association.

“Majority Lenders” means:

(a)                                  for
the purposes of paragraph (a) of Clause 38.1 (Required
consents) in the context of a waiver in relation to a proposed
Utilisation of the Revolving

 

 14
 

Facility (other than a Utilisation on the Closing Date) of the
condition in Clause 4.2 (Further Conditions
Precedent) a Lender or Lenders whose Available Commitments and
Available Ancillary Commitments with respect to the Revolving Facility
aggregate more than 662/3 per cent. of the Available
Facility and aggregate Available Ancillary Commitments with respect to the
Revolving Facility; and

(b)                                 in
any other case, a Lender or Lenders whose Commitments aggregate more than 662/3 per cent. of the Total Commitments (or,
if the Total Commitments have been reduced to zero, aggregated more than 662/3 per cent. of the Total Commitments
immediately prior to that reduction).

“Mandatory Cost” means the
percentage rate per annum calculated by the Facility Agent in accordance with
Schedule 4 (Mandatory Cost Formulae).

“Margin” means in relation
to any Revolving Loan or Term Loan, 0.75 per cent. per annum or such rate per
annum as may be in effect from time to time in accordance with Clause 12.3 (Margin Ratchet).

“Margin Stock” means “margin stock” or “margin security” within the meaning of
Regulations T, U and X.

“Material Adverse Effect”
means any event or series of events which is materially adverse to:

(a)                                  the
business, assets or financial condition of the Group taken as a whole;

(b)                                 the
ability of any Obligor to perform its payment obligations under the Finance
Documents; or

(c)                                  the
validity or enforceability of any material term of the Finance Documents or the
rights and remedies of any Finance Party under the Finance Documents in a
manner or to an extent which is materially adverse to the interests of the
Finance Parties under the Finance Documents.

“Material Company” means,
at any time:

(a)                                  an
Obligor; or

(b)                                 a
member of the Group which:

(i)                                     has
earnings before interest, tax, depreciation and amortisation (calculated on the
same basis as Consolidated Adjusted EBITDA, as defined in Clause 24 (Financial Covenants)) and discounting any
intra-group items, shares in subsidiaries and the earnings of subsidiaries)
representing 5 per cent. or more of Consolidated Adjusted EBITDA of the Group;
or

(ii)                                  has
gross assets (excluding intra group items) representing 5 per cent. or more of
the consolidated Gross Assets of the Group,

 

 15
 

 

in each case calculated on a consolidated basis.

Compliance with the conditions set out in sub-paragraphs (b) (i) and
(ii) above shall be determined by reference to the most recent Compliance
Certificate supplied by the Company and the latest audited annual and unaudited
semi-annual consolidated financial statements of the Group.

A report by the auditors of the Company that a Subsidiary is or is not
a Material Company shall, in the absence of manifest error, be conclusive and
binding on all Parties.

“Material Intellectual Property”
means the Intellectual Property which is material to the Group’s business.

“Maximum Incremental Facility Amount”
means USD 100,000,000 or, if the Non-Leveraged Criteria has been met,
USD 150,000,000.

“Month” means a period
starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that:

(a)                                  (subject
to paragraph (c) below) if the numerically corresponding day is not a Business
Day, that period shall end on the next Business Day in that calendar month in
which that period is to end if there is one, or if there is not, on the
immediately preceding Business Day;

(b)                                 if
there is no numerically corresponding day in the calendar month in which that
period is to end, that period shall end on the last Business Day in that
calendar month; and

(c)                                  if
an Interest Period begins on the last Business Day of a calendar month, that
Interest Period shall end on the last Business Day in the calendar month in
which that Interest Period is to end.

The above rules will only apply to the last Month of any period.  “Monthly”
shall be construed accordingly.

“Moody’s” means Moody’s
Investor Services, Inc. and any successors to its rating business.

“Non-Leveraged Criteria”
means (i) pro forma Consolidated Total Net Debt to Consolidated Adjusted EBITDA
is less than 2.5:1 as evidenced in the relevant Compliance Certificate
delivered to the Facility Agent pursuant to Clause 23.2 (Compliance Certificate); and/or (ii) the
long term rating of the Group’s senior indebtedness is not less than “investment
grade” (BBB- or Baa3 as rated by Standard and Poors or Moody’s respectively).

“Obligor” means a Borrower
or a Guarantor.

“Obligor’s Agent” means
the Company.

 

 16
 

 

“Original Borrower” means
the Facility A1 Borrower, the Facility A2 Borrower and the Revolving Facility
Borrowers.

“Optional Currency” means
a currency (other than the Base Currency) which complies with the conditions
set out in Clause 4.4 (Conditions relating
to Optional Currencies).

“Original Financial Statements”
means:

(a)                                  the
un-audited consolidated financial statements of the Group dated 30 June 2006;
and

(b)                                 the
audited consolidated financial statements of the Group for its financial year
ending 30 September 2005.

“Original Guarantor” means
each of the Company, Schick Technologies, Inc., Sirona Dental Systems GmbH,
Sirona Dental Services GmbH, Sirona Dental Systems LLC, Sirona Holding GmbH and
Sirona Immobilien GmbH.

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

“Party” means a party to
this Agreement.

“Patterson Note” means the
junior subordinated promissory note issued pursuant to paragraph IX(D) of the
U.S. Exclusivity Agreement subject to such subordinated intercreditor
provisions as may be acceptable to the Facility Agent (acting on the
instruction of the Majority Lenders).

“Permitted Bensheim Disposal”
means the sale of land located at Werner-von-Siemens Strasse 4, 64625 Bensheim,
Germany  registered at the Land Registry
of Bensheim at page 10724, boundary 2975 Bensheim, Land Parcel 125/8 (the “Land”) and the completion of a long term
lease agreement with a third party relating to the leasing of the Land together
with a new building situated thereon and the demolition of the existing
building according to the sale and lease back agreement which has been
notarized by Mrs. Ingrid Walter-Meinig in the notarial deed 129/2005 dated July
19, 2005.

“Permitted Disposal” means
any disposal of assets or a business as a whole pursuant to a Permitted
Reorganisation, provided that the conditions related thereto are satisfied at
the date of the relevant disposal and such disposal is not adverse to the
interest of the Lenders.

“Permitted Reorganisation”
means any reorganisation as set out in the Structure Memorandum provided that in relation to the proposed
restructuring of the Group set out in pages 20 to 29 thereof, such restructuring
is not adverse to the interest of the Lenders, and any member of the Group that
would become a Guarantor (a) pursuant to

 

 17
 

 

the terms of Clause 25.23 (Guarantors)
if the test set out therein was carried out on the date of the restructuring
rather than by reference to the most recently delivered Compliance Certificate,
(b) envisaged to become a Guarantor under the Structure Memorandum; and (c)
Newco 1 and Newco 2 (as referred to in the Structure Memorandum), shall accede
to this Agreement as an Additional Guarantor on the date of such restructuring.

“Pooling Agreement” means
each of the profit and loss transfer agreement between Sirona Holding GmbH and
Sirona Dental Services GmbH dated 24 August 2006, the profit and loss transfer
agreement between Sirona Dental Services GmbH and Sirona Dental Systems GmbH
dated 24 February 2004 and the profit and loss transfer agreement between
Sirona Dental Systems GmbH and Sirona Immobilien GmbH dated 23 September 2002.

“Quotation Day” means, in
relation to any period for which an interest rate is to be determined:

(a)                                  (if
the currency is euro) two TARGET Days before the first day of that period
provided such TARGET Day is also a Business Day in London or, if not, the
immediately preceding TARGET Day which is also a Business Day in London; or

(b)                                 (for
any other currency) two Business Days before the first day of that period,

unless market practice differs in the Relevant Interbank Market for a
currency, in which case the Quotation Day for that currency will be determined
by the Facility Agent in accordance with market practice in the Relevant
Interbank Market (and if quotations would normally be given by leading banks in
the Relevant Interbank Market on more than one day, the Quotation Day will be
the last of those days).

“Reference Banks” means,
the principal office in London of JPMorgan Chase Bank, N.A. UBS Limited and no
fewer than two other prime banks in the London interbank market as will be
appointed by the Facility Agent in consultation with the Company.

“Refinancing Costs” has
the meaning given to it in Clause 24.1 (Financial
definitions).

“Regulations T, U and X”
means, respectively, Regulations T, U and X of the Board of Governors of the
Federal Reserve System of the United States (or any successor) as now and from
time to time hereafter in effect.

“Related Fund”, in
relation to a fund (the “first fund”),
means a fund which is managed or advised by the same investment manager or
advisor as the first fund or, if it is managed by a different investment
manager or advisor, a fund whose investment manager or advisor is an Affiliate
of the investment manager or advisor of the first fund.

“Relevant Interbank Market” means in
relation to euro, the European interbank market, and, in relation to any other
currency, the London interbank market.

 

 18
 

 

“Relevant Jurisdiction”
means, in relation to an Obligor:

(a)                                  its
jurisdiction of incorporation; and

(b)                                 any
jurisdiction where it conducts its business.

“Relevant Period” has the
meaning given to it in Clause 24.1 (Financial
definitions).

“Repeating Representations”
means each of the representations set out in Clause 22.1 (Status), Clause 22.3 (Non-conflict with other obligations),
Clause 22.4 (Power and authority),
Clause 22.6 (Governing law and enforcement),  paragraph (e) of Clause 22.10 (No misleading information), Clause 22.16 (Good Title Assets), Clause 22.21 (Margin Stock) and Clause 22.24 (Anti-Terrorism Laws).

“Restricted Party” means
any person listed:

(a)                                  in
the Annex to the Executive Order;

(b)                                 on
the “Specially Designated Nationals and Blocked Persons” list maintained by the
OFAC; or

(c)                                  in
any successor list to either of the foregoing.

“Resignation Letter” means
a letter substantially in the form set out in Schedule 7 (Form of Resignation Letter).

“Revolving Commitment” means:

(a)                                  in
relation to an Original Lender, the amount in the Base Currency set opposite
its name under the heading “Revolving
Commitment” in Schedule 1 (The
Original Lenders) and the amount of any other Revolving Commitment
transferred to it under this Agreement; and

(b)                                 in
relation to any other Lender, the amount in the Base Currency of any Revolving
Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this
Agreement.

“Revolving Facility” means
the revolving credit facility made available under this Agreement as described
in sub-paragraph (a)(iii) of Clause 2.1 (The
Facilities).

“Revolving Facility Borrower”
means Sirona Dental Systems GmbH, Schick Technologies, Inc. and Sirona Dental
Services GmbH or an Additional Borrower unless it ceases to be a Borrower in
accordance with Clause 28 (Changes to the
Obligors).

“Revolving Loan” means a
loan made or to be made under the Revolving Facility or the principal amount
outstanding for the time being of that loan.

“Revolving Utilisation”
means a Revolving Loan or a Bank Guarantee.

 

 19
 

 

“Rollover Loan” means one
or more Revolving Loans:

(a)                                  made
or to be made on the same day that:

(i)                                     a
maturing Revolving Loan is due to be repaid; or

(ii)                                  a
demand by the Facility Agent pursuant to a drawing in respect of a Bank
Guarantee is due to be met;

(b)                                 the
aggregate amount of which is equal to or less than the maturing Revolving Loan
or the relevant claim in respect of that Bank Guarantee;

(c)                                  in
the same currency as the maturing Revolving Loan (unless it arose as a result
of the operation of Clause 8.2 (Unavailability
of a currency)) or the relevant claim in respect of that Bank
Guarantee; and

(d)                                 made
or to be made to the same Borrower for the purpose of:

(i)                                     refinancing
a maturing Revolving Loan; or

(ii)                                  satisfying
the relevant claim in respect of that Bank Guarantee.

“Screen Rate” means:

(a)                                  in
relation to LIBOR, the British Bankers’ Association Interest Settlement Rate
for the relevant currency and period; and

(b)                                 in
relation to EURIBOR, the percentage rate per annum determined by the Banking
Federation of the European Union for the relevant period,

displayed on the appropriate page of the Telerate screen. If the agreed
page is replaced or service ceases to be available, the Facility Agent may
specify another page or service displaying the appropriate rate after
consultation with the Company and the Lenders.

“SEC” means the United
States Securities and Exchange Commission or any successor thereof.

“Security” means a
mortgage, charge, pledge, lien or other security interest securing any
obligation of any person or any other agreement or arrangement having a similar
effect.

“Selection Notice” means a
notice substantially in the form set out in Part II of

Schedule 3 (Selection Notice)
given in accordance with Clause 13 (Interest
Periods and Terms) in relation to a Term Facility.

“Semi-Annual Financial Statements”
has the meaning given to it in Clause 24.1 (Financial
definitions).

“Senior Management” means
the chief executive officer and the chief financial officer from time to time.

 

 20
 

 

“Specified Time” means a
time determined in accordance with Schedule 9 (Timetables).

“Standard and Poors” means
Standard and Poor’s Rating Services, a division of McGraw-Hill Companies Inc.
or any successor to its rating business.

“Structure Memorandum”
means the structure paper describing the Group and including a group structure
chart and a funds flow showing the flow of funds at closing and prepared by
Ernst & Young in a form and substance satisfactory to the Facility Agent
(acting reasonably).

“Subordination Agreement”
means the subordination agreement dated on or about the date of this Agreement
made between, inter alia, the
Company and the Facility Agent relating to the subordination of certain
intra-group loans to amounts due to the Finance Parties under the Finance
Documents.

“Subsidiary” means in
relation to any company or corporation, a company or corporation:

(a)                                  which
is controlled, directly or indirectly, by the first mentioned company or
corporation;

(b)                                 more
than half the issued share capital of which is beneficially owned, directly or
indirectly by the first mentioned company or corporation; or

(c)                                  which
is a Subsidiary of another Subsidiary of the first mentioned company or corporation,

and for this purpose, a company or corporation shall be treated as
being controlled by another if that other company or corporation is able to
direct its affairs and/or to control the composition of its board of directors
or equivalent body.

“Super Majority Lenders”
means a Lender or Lenders whose Commitments aggregate more than 80 per cent. of
the Total Commitments (or, if the Total Commitments have been reduced to zero,
aggregated more than 80 per cent. of the Total Commitments immediately prior to
that reduction).

“Syndication Date” means
the day which is 4 Months after the later of the Closing Date or such earlier
date specified by the Mandated Lead Arrangers as the day on which the
Facilities have been successfully syndicated as described in the Fee Letter.

“TARGET” means Trans
European Automated Real time Gross Settlement Express Transfer payment system.

“TARGET Day” means any day
on which TARGET is open for the settlement of payments in euro.

“Tax” means any tax, levy,
impost, duty or other charge or withholding of a similar nature (including any
penalty or interest payable in connection with any failure to pay or any delay
in paying any of the same).

 

 21
 

 

“Term” means each period
determined under this Agreement for which the Issuing Bank is under a liability
under a Bank Guarantee.

“Term Facility” means
Facility A1 or Facility A2.

“Term Loan” means a
Facility A1 Loan or a Facility A2 Loan, as the case may be.

“Termination Date” means
the date falling 5 years after the Closing Date.

“Total Commitments” means
the aggregate of the Total Facility A1 Commitments, the Total Facility A2
Commitments and the Total Revolving Commitments.

“Total Facility A1 Commitments”
means the aggregate of the Facility A1 Commitments.

“Total Facility A2 Commitments”
means the aggregate of the Facility A2 Commitments.

“Total Revolving Commitments”
means the aggregate of the Revolving Commitments.

“Transfer Certificate”
means a certificate substantially in the form set out in Schedule 5 (Form of Transfer Certificate) or any other
form agreed between the Facility Agent and the Company.

“Transfer Date” means, in
relation to a transfer, the later of:

(d)                                 the
proposed Transfer Date specified in the Transfer Certificate; and

(e)                                  the
date on which the Facility Agent executes the Transfer Certificate.

“Treasury Transactions”
means any derivative transaction entered into in connection with protection
against or benefit from fluctuations in any rate or price.

“Unpaid Sum” means any sum
due and payable but unpaid by an Obligor under the Finance Documents.

“U.S.” and “United States”
means the United States of America, its territories, possessions and other
areas subject to the jurisdiction of the United States of America.

“U.S. Borrower” means a
Borrower whose jurisdiction of organisation is a state of the United States of
America or the District of Columbia.

“U.S. Exclusivity Agreement”
means a distributorship agreement dated 27 April 1998 between Sirona Dental
Systems GmbH and Paterson Companies, Inc., as amended and restated from time to
time.

“U.S. Group Company” means
the Company and its direct and indirect Subsidiaries which are organised under
the law of any State of the United States of America or the District of
Columbia.

 

 22
 

 

“U.S. Guarantor” means a
Guarantor whose jurisdiction of organisation is a state of the United States of
America or the District of Columbia.

“U.S. Obligor” means any
U.S. Borrower or U.S. Guarantor.

“Utilisation” means a Loan
or a Bank Guarantee.

“Utilisation Date” means
the date on which a Utilisation is made.

“Utilisation Request”
means a notice substantially in the form set out in Part I of Schedule 3 (Requests).

“VAT” means value added
tax and any other tax of a similar nature.

1.2          Construction

(a)                                  Unless
a contrary indication appears a reference in this Agreement to:

(i)                                     the
“Facility Agent”, the “Mandated Lead Arrangers”, any “Finance
Party”, any “Lender”, any “Issuing Bank”, any “Obligor”, any “Party” or any other person shall be construed so as to
include its successors in title, permitted assigns and permitted transferees;

(ii)                                  a
document in “agreed form” is a document which
is previously agreed in writing by or on behalf of the Company and the Facility
Agent or, if not so agreed, is in the form to be agreed between the Facility
Agent and the Company, each acting reasonably;

(iii)                               “assets” includes present and future properties, revenues and
rights of every description;

(iv)                              the
“equivalent”, on any day, in one
currency (the “first currency”) of a sum
denominated in a second currency (the “second currency”)
means the amount of the first currency calculated by the Facility Agent as
being that which would be required by it to purchase the relevant sum in the
second currency in the London spot exchange market at or about 11.00 a.m. on
that day in accordance with its usual practice;

(v)                                 the
“European interbank market” means the
interbank market for euro operating in Participating Member States;

(vi)                              a
“Finance Document” or any other
agreement or instrument is a reference to that Finance Document or other agreement
or instrument as amended or novated (however fundamentally);

(vii)                           “indebtedness” includes any obligation (whether incurred as
principal or as surety) for the payment or repayment of money, whether present
or future, actual or contingent;

(viii)                        “materiality” and other qualifications will be determined
objectively and not at the discretion of the Facility Agent;

 

 23
 

 

(ix)                                a
“participation” of a Lender in:

(A)                              a
Loan, means the amount of such Loan which such Lender has made or is to make
available and thereafter that part of the Loan which is owed to such Lender; or

(B)                                a
Bank Guarantee, means such Lender’s actual and contingent liabilities in
respect of such Bank Guarantee pursuant to paragraph (b) of Clause 7.4 (Indemnities);

(x)                                   a
“person” includes any person,
firm, company, corporation, government, state or agency of a state or any
association, trust or partnership
(whether or not having separate legal personality) of two or more of the
foregoing;

(xi)                                “promptly” and “immediately”
means without undue delay;

(xii)                             a
“regulation” includes any
regulation, rule, official directive, request or guideline (whether or not having
the force of law but, if not, compliance with
which is customary) of any governmental, intergovernmental or supranational
body, agency, department or regulatory, self regulatory or other authority or
organisation;

(xiii)                          a
provision of law is a reference to that provision as amended or re enacted; and

(xiv)                         a
time of day is a reference to London time.

(b)                                 Section,
Clause and Schedule headings are for ease of reference only.

(c)                                  Unless
a contrary indication appears, a term used in any other Finance Document or in
any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this Agreement.

(d)                                 A
Borrower providing “cash cover” for
a Bank Guarantee or an Ancillary Facility means a Borrower paying an amount in
the currency of the Bank Guarantee (or, as the case may be, Ancillary Facility)
to an interest bearing account in the name of that Borrower and the following
conditions being met:

(i)                                     the
account is with the Facility Agent (if the cash cover is to be provided for all
the Lenders) or with a Lender or Ancillary Lender (if the cash cover is to be
provided for that Lender or Ancillary Lender);

(ii)                                  until
no amount is or may be outstanding under that Bank Guarantee or Ancillary
Facility, withdrawals from the account may only be made to pay a Finance Party
amounts due and payable to it under this Agreement in respect of that Bank Guarantee
or Ancillary Facility; and

 

 24
 

 

(iii)                               that
Borrower has executed a security document in respect of that account, in form
and substance satisfactory to the Facility Agent, the Lender or Ancillary
Lender with which that account is held, creating a first ranking security
interest over that account.

(e)                                  A
Default (including an Event of Default) is “continuing”
or “outstanding” to the extent it has not
been waived, remedied or has not ceased to exist.

(f)                                    A
Borrower “repaying” or “prepaying”
(or any derivative form thereof) a Bank Guarantee or any Ancillary Outstandings
the liability in respect of which is contingent means:

(i)                                     that
Borrower providing cash cover for that Bank Guarantee or in respect of the
Ancillary Outstandings;

(ii)                                  the
maximum amount payable under or in respect of the Bank Guarantee or Ancillary
Outstandings being reduced or cancelled in accordance with its terms; or

(iii)                               the
Issuing Bank, Lender or, as the case may be, Ancillary Lender being satisfied
that it has no further liability under or in respect of that Bank Guarantee or
Ancillary Outstandings,

and the amount by which a Bank Guarantee is, or
Ancillary Outstandings are, repaid or prepaid under sub-paragraphs (f)(i) and
(f)(ii) above is the amount of the relevant cash cover or reduction.

(g)                                 A
Lender funding its participation in a Utilisation includes a Lender
participating in a Bank Guarantee.

(h)                                 An
outstanding amount of a Bank Guarantee at any time is the maximum amount that
is or may be payable by the relevant Borrower in respect of that Bank Guarantee
at that time.

(i)                                     There
shall be no breach of any basket hereunder where such amount has been
calculated in a currency, other than the Base Currency and upon the day of such
conversion it falls within the basket but at a subsequent conversion back into
the Base Currency such basket is breached solely due to the fluctuation in the
currency markets.

1.3          Currency Symbols and Definitions

“$”, “dollars” and “USD” denote lawful currency of the United States of America
and “EUR”, “€” and “euro”
means the single currency unit of the Participating Member States.

1.4          Third party rights

(a)                                  Unless
expressly provided to the contrary in a Finance Document, a person who is not a
Party has no rights under the Contracts (Rights of Third Parties) Act 1999 to
enforce or enjoy the benefit of any term of this Agreement.

 

 25
 

 

(b)                                 Notwithstanding
any term of any Finance Document, the consent of any person who is not a Party
is not required to rescind or vary this Agreement at any time.

 26

 

SECTION
2

THE
FACILITIES

2.                                 THE
FACILITIES

2.1                           The
Facilities

(a)                                      Subject to the
terms of this Agreement, the Lenders make available:

(i)                        a term loan facility in an
aggregate amount equal to the Total Facility A1 Commitments being USD
150,000,0000 at the date of this Agreement;

(ii)                     a term loan facility in an
aggregate amount equal to the Total Facility A2 Commitments being EUR
275,000,000 at the date of this Agreement;

(iii)                  a multicurrency revolving credit
facility in an aggregate amount equal to the Total Revolving Commitments being
USD 150,000,000 at the date of this Agreement; and

(iv)                 Subject to the terms of Clause 2.2 (Incremental Facility) an uncommitted
incremental facility in an aggregate principal amount not to exceed the Maximum
Incremental Facility Amount.

(b)                                     The Revolving
Facility will be available to the Revolving Facility Borrowers.  Facility A1 will only be available to the
Facility A1 Borrower and Facility A2 will only be available to the Facility A2
Borrower.

(c)                                      Subject to the
terms of this Agreement and the Ancillary Documents, an Ancillary Lender may
make available an Ancillary Facility to any of the Borrowers in place of all or
part of its Commitment under the Revolving Facility.

2.2                           Incremental
Facility

(a)                                      Subject to Clause
2.3 (Incremental Facility Conditions),
a Borrower may by written notice to the Facility Agent establish from time to
time after the Closing Date one or more additional term loans or revolving
loans (an “Incremental Loan”) from one or
more existing Lenders and/or another bank or financial institution (a “Further Lender”) that in each case agrees to make such loans
to the Borrower.  Such notice (an “Incremental Commitment Notice”) shall include:

(i)                        the
principal amount of the Incremental Loan it wishes to establish;

(ii)                     that such
principal amount, when aggregated with any existing Incremental Loans is less
than the Maximum Incremental Facility Amount;

 

 27
 

 

(iii)                  the terms and
conditions (including the name and jurisdiction of incorporation of the
proposed borrower) of the proposed Incremental Loan;

(iv)                 the date on which
the proposed Incremental Loan shall become effective and the purpose for which
the proceeds of such Incremental Loan shall be applied;

(v)                    an invitation
to each Lender to participate in the Incremental Loan (the amount of such
participation to be pro-rata to
the proportion that Lender’s Commitments bear to the Total Commitments);

(vi)                 confirmation
(with supporting calculations where necessary) that each of the conditions set
out in Clause 2.3 (Incremental Facility
Conditions) have or will be met at the date such Incremental Loan
becomes effective,

the Incremental
Commitment Notice shall be signed by a director of the Company.

(b)                                     As soon as
reasonably practicable following receipt of an Incremental Commitment Notice,
the Facility Agent shall forward such Incremental Commitment Notice to the
Lenders requesting that each Lender confirms in writing within 10 Business Days
of the date of the Incremental Commitment Notice whether they accept or decline
to participate in the relevant Incremental Loan.

(c)                                      If any Lender
does not wish to participate in an Incremental Loan or fails to respond to the
invitation set out in the relevant Incremental Commitment Notice within 10
Business Days of the date of such Incremental Commitment Notice, the portion of
the Incremental Loan offered to it pursuant to such Incremental Commitment
Notice shall be offered to other existing Lenders pro-rata to the proportion that each Lender’s Commitments
bear to the Total Commitments for the purpose of this paragraph the definition
of which shall be amended to exclude the Commitments of any declining Lenders.

(d)                                     To the extent the
existing Lenders decline or fail to accept the invitation to participate in
Incremental Loan in an amount equal to the amount  offered to the Lenders pursuant to
sub-paragraphs (a)(v) and paragraph (c) above (the “Declined
Amount”) within 10 Business Days of the date of the relevant
Incremental Commitment Notice, the Company may nominate a Further Lender to
participate in the relevant Incremental Loan in an amount not exceeding the
Declined Amount.  The Company shall
arrange for each Further Lender to confirm to the Facility Agent in writing
that it has agreed to participate in an Incremental Loan up to the Declined Amount
on the terms set out in the relevant Incremental Commitment Notice within 20
Business Days of the date of such notice or such other shorter period requested
by the Company.

 28
 

 

(e)                                      A Further Lender
may only participate in a Incremental Loan if it has acceded to this Agreement
as a Lender and each of the conditions set out in Clause 2.3 (Incremental Facility Conditions) have or
will be satisfied on the date the Incremental Facility Commitment in
established).

(f)                                        Commitments in
respect of Incremental Loans shall become Commitments under this Agreement
pursuant to an amendment to this Agreement, executed by the relevant Borrower,
each Lender and each Further Lender that agrees to participate in the relevant
Incremental Loan and the Facility Agent. 
For the avoidance of doubt the Facility Agent shall be authorised
without the consent of the Majority Lenders to execute such amendment which
shall include such technical amendments to the terms of this Agreement as are
required to enable the operation of the relevant Incremental Facilities
provided only that the conditions in Clause 2.3 (Incremental Facility Conditions) are met.

2.3                           Incremental
Facility Conditions

An Incremental Loan may
only be effective if:

(a)                                      no Default or
Event of Default has occurred and is continuing nor would the drawing of any
amount under the Incremental Loan cause there to be a Default or Event of
Default;

(b)                                     each of the
financial covenants set out in Clause 24 (Financial
Covenants) would be satisfied on a pro-forma
basis on the assumption that the Incremental Loan is drawn in full as of the
last day of the most recently ended Relevant Period;

(c)                                      the maturity date
of the Incremental Loan is no earlier than the Termination Date hereunder and
the weighted average life to maturity of the Incremental Loan is no shorter
than that of Facilities A1 and A2;

(d)                                     the claims of the
Lenders in respect of the Term Facilities and the Revolving Facility rank at
least pari passu with the claims
of the Lenders under the Incremental Loan;

(e)                                      the provisions
relating to mandatory prepayments and guarantees under and of the Incremental
Loan shall be no more favourable to the Lenders under the Incremental Loan
compared to those under the Facilities;

(f)                                        the Company
delivers to the Facility Agent any legal opinion or other condition precedents
(including any information required to comply with “know your customer” or
similar identification procedures) requested by the Facility Agent (acting
reasonably) prior to utilisation of the Incremental Loan;

(g)                                     if the proposed
borrower of the Incremental Loan is not a Borrower it becomes an Additional
Borrower on and in accordance with the terms of Clause 28.2 (Additional Borrowers);

 29
 

 

(h)                                     the date upon
which the Incremental Loan is established is no earlier than one Business Day
after the Closing Date.

2.4                           Finance
Parties rights and obligations

(a)                                      The obligations
of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its
obligations under the Finance Documents does not affect the obligations of any
other Party under the Finance Documents. 
No Finance Party is responsible for the obligations of any other Finance
Party under the Finance Documents.

(b)                                     The rights of each
Finance Party under or in connection with the Finance Documents are separate
and independent rights and any debt arising under the Finance Documents to a
Finance Party from an Obligor shall be a separate and independent debt.

(c)                                      A Finance Party
may, except as otherwise stated in the Finance Documents, separately enforce
its rights under the Finance Documents.

2.5                           Obligors’
Agent

(a)                                      Each Obligor
(other than the Company) by its execution of this Agreement or an Accession
Letter irrevocably appoints the Company to act on its behalf as its agent in
relation to the Finance Documents and irrevocably authorises:

(i)                        the Company on its behalf to
supply all information concerning itself contemplated by this Agreement to the
Finance Parties and to give all notices and instructions (including, in the
case of a Borrower, Utilisation Requests), to execute on its behalf any
Accession Letter, to make such agreements and to effect the relevant
amendments, supplements and variations capable of being given, made or effected
by any Obligor notwithstanding that they may affect the Obligor, without
further reference to or the consent of that Obligor; and

(ii)                     each Finance Party to give any
notice, demand or other communication to that Obligor pursuant to the Finance
Documents to the Company,

and in each case the
Obligor shall be bound as though the Obligor itself had given the notices and
instructions (including, without limitation, any Utilisation Requests) or
executed or made the agreements or effected the amendments, supplements or
variations, or received the relevant notice, demand or other communication.

(b)                                     Every act,
omission, agreement, undertaking, settlement, waiver, amendment, supplement,
variation, notice or other communication given or made by the Obligors’ Agent
or given to the Obligors’ Agent under any Finance Document on behalf of another
Obligor or in connection with any Finance Document (whether or not known to any
other Obligor and whether occurring before or after such other Obligor became
an Obligor under any Finance Document) shall be binding for all purposes on that
Obligor as if that Obligor had

 30
 

expressly made, given or concurred with it.
In the event of any conflict between any notices or other communications of the
Obligors’ Agent and any other Obligor, those of the Obligors’ Agent shall
prevail.

(c)                                      For the purpose
of acting as Obligors’ Agent in accordance with this Clause 2.5, each Obligor
releases the Company from the restrictions of Sec 181 of the German Civil Code
and any equivalent restriction under any applicable law.

3.                                 PURPOSE

3.1                           Purpose

(a)                                      Each Borrower
shall apply all amounts borrowed by it under Facility A1 and Facility A2
towards refinancing all Financial Indebtedness of the Group outstanding under
the Existing Senior Facilities Agreement and the Existing Mezzanine Facility
Agreement as described in the Structure Memorandum, and costs and expenses
incurred by the Group in connection with the Facilities made available
hereunder.

(b)                                     Each Borrower
shall apply all amounts borrowed by it under the Revolving Facility, any Bank
Guarantee or any utilisation of any Ancillary Facility towards the general
corporate and working capital purposes of the Group including the cost and
expenses described in paragraph (a).  The
Borrowers under the Revolving Facility shall be entitled to apply amounts
borrowed under the Revolving Facility towards the financing of acquisitions
permitted under sub-paragraph (b)(ii) of Clause 25.7 (Acquisitions).

3.2                           Monitoring

No Finance Party is bound
to monitor or verify the application of any amount borrowed pursuant to this
Agreement.

4.                                 CONDITIONS
OF UTILISATION

4.1                           Initial
Conditions Precedent

No Borrower may deliver a
Utilisation Request unless the Facility Agent has received all of the documents
and other evidence listed in Part I of Schedule 2 (Conditions Precedent to Delivery of a Utilisation Request)
in form and substance satisfactory to the Facility Agent.  The Facility Agent shall notify the Company
and the Lenders promptly upon being so satisfied.

4.2                           Further
Conditions Precedent

The Lenders will only be
obliged to comply with Clause 5.4 (Lenders’
participation) if on the date of the Utilisation Request and on the
proposed Utilisation Date:

(a)                                      the Facility
Agent has received all of the documents and other evidence listed in Part IA of
Schedule 2 (Conditions Precedent to Drawdown)
in form and substance satisfactory to the Facility Agent;

 31
 

 

(b)                                     in the case of a
Rollover Loan, no notice has been delivered under Clause 26.18 (Acceleration) relating to the Revolving
Commitments and, in the case of any other Utilisation, no Default is continuing
or would result from the proposed Utilisation; and

(c)                                      in relation to
any Utilisation on the Closing Date (subject to Clause 4.3 (Certain Funds)), all the representations
and warranties in Clause 22 (Representations)
or, in relation to any other Utilisation, the Repeating Representations to be
made by each Obligor are true in all material respects.

4.3                           Certain
Funds

The Lenders agree that
(without prejudice to Clause 26.19 (Certain
Funds Period)) in relation to the Utilisation under Facility A1 and
Facility A2 requested to be made during the Certain Funds Period, Clause 4.2 (Further Conditions Precedent) shall only
apply if a Certain Funds Default has occurred which is continuing or, in
relation to paragraph (b) of Schedule 12 (Certain
Funds Default), the relevant parties are in negotiations within the
meaning of such paragraph (b).

4.4                           Conditions
relating to Optional Currencies

(a)                                      A currency will
constitute an Optional Currency in relation to a Revolving Utilisation if:

(i)                        it is readily available in the
amount required and freely convertible into the Base Currency in the Relevant
Interbank Market on the Quotation Day and the Utilisation Date for that
Utilisation; and

(ii)                     it is Euro, Australian dollars or
Japanese Yen or has been approved by the Facility Agent (acting on the
instructions of all the Lenders) on or prior to receipt by the Facility Agent
of the relevant Utilisation Request for that Utilisation.

(b)                                     If the Facility
Agent has received a written request from the Company for a currency to be
approved under sub-paragraph (a)(ii) above, the Facility Agent will confirm to
the Company by the Specified Time:

(i)                        whether or not the Lenders have
granted their approval; and

(ii)                     if approval has been granted, the
minimum amount (and, if required, integral multiples) for any subsequent
Utilisation in that currency.

4.5                           Maximum
number of Utilisations

(a)                                      A Borrower may
not deliver a Utilisation Request if as a result of the proposed Utilisation:

(i)                        4 or more Term Loans would be
outstanding under Facility A1 and Facility A2; or

(ii)                     10 or more Revolving Utilisations
(or 10 or more Incremental Facility Loans) would be outstanding.

 32
 

 

(b)                                     A Borrower may not
request that a Term Loan be divided if, as a result of the proposed division, 4
or more Term Loans would be outstanding under each of Facility A1 and Facility
A2. A Borrower may not request that a Revolving Loan be divided.

(c)                                      Any Loan made by
a single Lender under Clause 8.2 (Unavailability
of a currency) shall not be taken into account in this Clause 4.5.

4.6                           Authorisation
re fees, etc.

Each Borrower irrevocably
authorises the Facility Agent to deduct from the amount of the first
Utilisation under the Facilities, all fees, costs and expenses then due from
the Company pursuant to Clause 15 (Fees).

 33
 

 

SECTION
3

UTILISATION

5.                                 UTILISATION
OF LOANS

5.1                           Delivery
of a Utilisation Request

A Borrower may utilise a
Facility by delivery to the Facility Agent of a duly completed Utilisation
Request not later than the Specified Time.

5.2                           Completion
of a Utilisation Request

(a)                                      Each Utilisation
Request is irrevocable and will not be regarded as having been duly completed
unless:

(i)                        it identifies the Facility to
be utilised;

(ii)                     the proposed Utilisation Date is a
Business Day within the Availability Period applicable to that Facility;

(iii)                  the currency and amount of the
Utilisation comply with Clause 5.3 (Currency
and amount); and

(iv)                 the proposed Interest Period complies
with Clause 13 (Interest Periods and Terms).

(b)                                     Only one
Utilisation may be requested in each Utilisation Request.

5.3                           Currency
and amount

(a)                                      The currency
specified in a Utilisation Request must be the Base Currency or, in case of the
Revolving Facility, the Base Currency or an Optional Currency.

(b)                                     The amount of the
proposed Utilisation must be:

(i)                        for Facility A1, an amount
equal to USD 150,000,000 or, if less, the Available Facility; or

(ii)                     for Facility A2, an amount equal
to euro 275,000,000 or, if less, the Available Facility; or

(iii)                  for the Revolving Facility, a minimum
amount of USD 1,000,000 (and thereafter integral multiples of
USD 500,000) (or if an Optional Currency (subject to paragraph (b) of
Clause 4.4 (Conditions relating to Optional
Currencies)) its equivalent) or, if less, the Available Facility.

(c)                                      For the avoidance
of doubt, none of the requirements in paragraph (b) above shall apply to any
Ancillary Facility.

5.4                           Lenders’
participation

(a)                                      If the conditions
set out in this Agreement for the relevant Facility have been met, each Lender
shall make its participation in each Loan available by the Utilisation Date
through its Facility Office.

 34
 

 

 

(b)                                     The amount of each
Lender’s participation in each Loan will be equal to the proportion borne by
its Available Commitment to the Available Facility immediately prior to making
the Loan.

(c)                                      The Facility
Agent shall determine the Base Currency Amount of each Revolving Loan which is
to be made in an Optional Currency and shall notify each Lender of the amount
of each Loan and the amount of its participation in that Loan by the Specified
Time.

5.5                           Limitation
on Utilisations

The Revolving Facility
shall not be utilised on the Closing Date unless Facility A1 and Facility A2
are drawn in full at the same time.

6.                                 UTILISATION
BY WAY OF BANK GUARANTEES

6.1                           The
Revolving Facility

(a)                                      The Revolving
Facility may be utilised by way of Bank Guarantees.

(b)                                     Other than Clause
5.5 (Limitations on Utilisations),
Clause 5 (Utilisation of Loans)
does not apply to utilisation by way of Bank Guarantees.

6.2                           Delivery
of a Utilisation Request for Bank Guarantees

A Borrower may request a
Bank Guarantee or the renewal of an existing Bank Guarantee by delivery to the
Facility Agent of a duly completed Utilisation Request in the form of Part IB
of Schedule 3 (Utilisation Request Bank
Guarantees) not later than the Specified Time.

6.3                           Completion
of a Utilisation Request for Bank Guarantees

Each Utilisation Request
for a Bank Guarantee is irrevocable and will not be regarded as having been
duly completed unless:

(a)                                      it specifies that
it is for a Bank Guarantee;

(b)                                     the proposed
Utilisation Date is a Business Day within the Availability Period applicable to
the Revolving Facility;

(c)                                      the currency and
amount of the Bank Guarantee comply with Clause 6.4 (Currency and amount);

(d)                                     the form of Bank
Guarantee is attached;

(e)                                      the Expiry Date
of the Bank Guarantee falls on or before the Termination Date in relation to
the Revolving Facility;

(f)                                        the Term of the
Bank Guarantee is 12 months or less;

(g)                                     the delivery
instructions for the Bank Guarantee are specified; and

(h)                                     in the case of a
Utilisation Request for the renewal of a Bank Guarantee the terms shall be the
same as those of the relevant Bank Guarantee immediately prior to its renewal
except that:

 35
 

 

(i)                        paragraph (d) above shall not
apply;

(ii)                     its amount may be less than the
amount of the Bank Guarantee immediately prior to its renewal; and

(iii)                  its Term shall start on the date
which was the Expiry Date of the Bank Guarantee immediately prior to its
renewal and shall end on the proposed Expiry Date specified in the renewal
Utilisation Request (which for the avoidance of doubt, shall be no longer than
12 months after the date of the relevant renewal Utilisation Request).

6.4                           Currency
and amount

(a)                                      The currency
specified in a Utilisation Request must be the Base Currency or an Optional
Currency.

(b)                                     The amount of the
proposed Bank Guarantee must be an amount whose Base Currency Amount is not
more than the Available Facility and which is if the currency selected is the
Base Currency, a minimum of USD 500,000 (or, if an Optional Currency, its
equivalent) or, if less, the Available Facility.

6.5                           Issue
of Bank Guarantees

(a)                                      If the conditions
set out in this Agreement have been met, the Issuing Bank shall:

(i)                        issue the Bank Guarantee on the
Utilisation Date; and

(ii)                     if so requested amend and reissue
any Bank Guarantee on its Expiry Date.

(b)                                     No Borrower may
deliver a Utilisation Request unless the Facility Agent has made the
notification pursuant to Clause 4.1 (Initial
Conditions Precedent).

(c)                                      The Issuing Bank
will only be obliged to comply with paragraph (a) above if on the date of the
Utilisation Request and on the proposed Utilisation Date:

(i)                        in the case of a Bank Guarantee
to be renewed, no notice has been delivered under Clause 26.18 (Acceleration) relating to the Revolving
Commitments and, in the case of any other Utilisation, no Default is continuing
or would result from the proposed Utilisation; and

(ii)                     in relation to any Utilisation on
the Closing Date, all the representations and warranties in Clause 22 (Representations) or, in relation to any
other Utilisation, the Repeating Representations to be made by each Obligor are
true in all material respects.

(d)                                     The amount of each
Lender’s participation in each Bank Guarantee will be equal to the proportion
borne by its Available Commitment to the Available Facility (in each case in
relation to the Revolving Facility) immediately prior to the issue of the Bank
Guarantee.

 36
 

 

(e)                                      The Facility
Agent shall determine the Base Currency Amount of each Bank Guarantee which is
to be issued in an Optional Currency and shall notify the Issuing Bank and each
Lender of the details of the requested Bank Guarantee and its participation in
that Bank Guarantee by the Specified Time.

7.                                 BANK
GUARANTEES

7.1                           Immediately
payable

If a Bank Guarantee or
any amount outstanding under a Bank Guarantee is expressed to be immediately
payable, the Borrower that requested the issue of that Bank Guarantee shall
repay or prepay that amount immediately.

7.2                           Fees
payable in respect of Bank Guarantees

(a)                                      The relevant
Borrower shall pay to the Issuing Bank a fronting fee at the rate of 0.125 per
cent. per annum on the outstanding amount which is counter-indemnified by the
other Lenders of each Bank Guarantee requested by it for the period from the
date of issue of that Bank Guarantee until its Expiry Date.

(b)                                     The relevant
Borrower shall pay to the Facility Agent (for the account of each Lender) a
Bank Guarantee fee in the Base Currency computed at the rate equal to the
Margin applicable to a Revolving Loan on the outstanding amount of each Bank
Guarantee requested by it for the period from the issue of that Bank Guarantee
until its Expiry Date.  This fee shall be
distributed according to each Lender’s Bank Guarantee Proportion of that Bank
Guarantee.

(c)                                      The accrued Bank
Guarantee fee on a Bank Guarantee shall be payable on the first day of each
successive period of three Months (or such shorter period as shall end on the
Expiry Date for that Bank Guarantee) starting on the date of issue of that Bank
Guarantee and on any date the Revolving Facility is cancelled in full and the
Bank Guarantee is prepaid or repaid in full.

7.3                           Claims
under a Bank Guarantee

(a)                                      Each Borrower
irrevocably and unconditionally authorises the Issuing Bank to pay any claim
made or purported to be made under a Bank Guarantee requested by it and which
appears on its face to be in order (a “claim”).

(b)                                     Each Borrower
shall immediately on demand or, if such payment is being funded by a Revolving
Loan, shall within three Business Days of demand pay to the Facility Agent for
the Issuing Bank an amount equal to the amount of any claim.

(c)                                      Each Borrower
acknowledges that the Issuing Bank:

(i)                        is not obliged to carry out any
investigation or seek any confirmation from any other person before paying a
claim; and

(ii)                     deals in documents only and will
not be concerned with the legality of a claim or any underlying transaction or
any available set off, counterclaim or other defence of any person.

 37
 

 

7.4                           Indemnities

(a)                                      Each Borrower
shall within 3 Business Days of demand indemnify the Issuing Bank against any
cost, loss or liability incurred by the Issuing Bank (otherwise than by reason
of the Issuing Bank’s gross negligence or wilful misconduct or material breach
of its contractual obligations) in acting as the Issuing Bank under any Bank
Guarantee requested by (or on behalf of) that Borrower.

(b)                                     Each Lender shall
within 3 Business Days of demand indemnify the Issuing Bank against such Lender’s
Bank Guarantee Proportion of any cost, loss or liability incurred by the
Issuing Bank (otherwise than by reason of the Issuing Bank’s gross negligence
or wilful misconduct) in acting as the Issuing Bank under any Bank Guarantee
(unless the Issuing Bank has been reimbursed by an Obligor pursuant to a
Finance Document).

(c)                                      If any Lender is
not permitted (by its constitutional documents or any applicable law) to comply
with paragraph (b) above, then that Lender will not be obliged to comply with
paragraph (b) and shall instead be deemed to have taken, on the date the Bank
Guarantee is issued (or if later, on the date the Lender’s participation in the
Bank Guarantee is transferred or assigned to the Lender in accordance with the
terms of this Agreement), an undivided interest and participation in the Bank
Guarantee in an amount equal to its Bank Guarantee Proportion of that Bank
Guarantee.  On receipt of demand from the
Facility Agent, that Lender shall pay to the Facility Agent (for the account of
the Issuing Bank) an amount equal to its Bank Guarantee Proportion of the
amount demanded.

(d)                                     The Borrower which
requested (or on behalf of which the Company requested) a Bank Guarantee shall
immediately on demand reimburse any Lender for any payment it makes to the
Issuing Bank under this Clause 7.4 in respect of that Bank Guarantee.

(e)                                      The obligations
of each Lender under this Clause 7.4 are continuing obligations and will extend
to the ultimate balance of sums payable by that Lender in respect of any Bank
Guarantee, regardless of any intermediate payment or discharge in whole or in
part.

(f)                                        The obligations
of any Lender or Borrower under this Clause 7.4 will not be affected by any
act, omission matter or thing which, but for this Clause 7.4, would reduce,
release or prejudice any of its obligations under this Clause (without
limitation and whether or not known to it or any other person) including:

(i)                        any time, waiver or consent
granted to, or composition with, any Obligor, any beneficiary under a Bank
Guarantee or other person;

 38
 

 

(ii)                     the release of any other Obligor or
any other person under the terms of any composition or arrangement with any
creditor or any member of the Group;

(iii)                  the taking, variation, compromise,
exchange, renewal or release of, or refusal or neglect to perfect, take up or
enforce, any rights against, or security over assets of, any Obligor, any
beneficiary under a Bank Guarantee or other person or any non presentation or
non observance of any formality or other requirement in respect of any
instrument or any failure to realise the full value of any security;

(iv)                 any incapacity or lack of power,
authority or legal personality of or dissolution or change in the members or
status of an Obligor, any beneficiary under a Bank Guarantee or any other
person;

(v)                    any amendment (however fundamental)
or replacement of a Finance Document, any Bank Guarantee or any other document
or security;

(vi)                 any unenforceability, illegality or
invalidity of any obligation of any person under any Finance Document, any Bank
Guarantee or any other document or security; or

(vii)              any insolvency or similar proceedings.

7.5                           Rights
of contribution

No Obligor will be
entitled to any right of contribution or indemnity from any Finance Party in
respect of any payment it may make under this Clause 7.

7.6                           Settlement
Conditional

Any settlement or
discharge between a Lender and the Issuing Bank shall be conditional upon no
security or payment to the Issuing Bank by a Lender or any other person on
behalf of a Lender being avoided or reduced by virtue of any laws relating to
bankruptcy, insolvency, liquidation or similar laws of general application and,
if any such security or payment is so avoided or reduced, the Issuing Bank
shall be entitled to recover the value or amount of such security or payment
from such Lender subsequently as if such settlement or discharge had not
occurred.

7.7                           Exercise
of Rights

The Issuing Bank shall
not be obliged before exercising any of the rights, powers or remedies
conferred upon it in respect of any Lender by this Agreement or by law:

(a)                                      to take any action
or obtain judgment in any court against any Obligor;

(b)                                     to make or file
any claim or proof in a winding up or dissolution of any Obligor; or

(c)                                      to enforce or
seek to enforce any other security taken in respect of any of the obligations
of any Obligor under this Agreement.

 39
 

 

8.                                 OPTIONAL
CURRENCIES

8.1                           Selection
of currency

A Borrower shall select
the currency of a Revolving Utilisation in a Utilisation Request.

8.2                           Unavailability
of a currency

If before the Specified
Time on any Quotation Day:

(a)                                      a Lender notifies
the Facility Agent that the Optional Currency requested is not readily
available to it in the amount required; or

(b)                                     a Lender notifies
the Facility Agent that compliance with its obligation to participate in a Loan
in the proposed Optional Currency would contravene a law or regulation
applicable to it,

the Facility Agent will
give notice to the relevant Borrower to that effect by the Specified Time on
that day.  In this event, any Lender that
gives notice pursuant to this Clause 8.2 will be required to participate in the
Loan in the Base Currency (in an amount equal to that Lender’s proportion of
the Base Currency Amount, or in respect of a Rollover Loan, an amount equal to
that Lender’s proportion of the Base Currency Amount of the Rollover Loan that
is due to be paid) and its participation will (other than for the purposes of
calculating maximum numbers of loans under Clause 4.6) be treated as a separate
Loan denominated in the Base Currency during that Interest Period.

8.3                           Facility
Agent’s calculations

Each Lender’s
participation in a Loan will be determined in accordance with paragraph (b) of
Clause 5.4 (Lenders’ participation).

9.                                 ANCILLARY
FACILITIES

9.1                           Type of
Facility

An Ancillary Facility may
be by way of:

(a)                                      an overdraft
facility;

(b)                                     a guarantee,
bonding, documentary or stand by letter of credit facility;

(c)                                      any other
facility or accommodation required in connection with the business of the Group
and which is agreed to by the Company with an Ancillary Lender.

9.2                           Availability

(a)                                      If the Company
and a Lender agree and subject as provided below, the Lender may provide an
Ancillary Facility on a bilateral basis to a Borrower(s) in place of all or
part of that Lender’s unutilised Revolving Commitment, provided
that no more than 5 Ancillary Facilities may be outstanding at any
time.

 40
 

 

(b)                                     An Ancillary
Facility shall not be made available unless the Facility Agent has first been
provided with the notice and other information contemplated by Clause 9.3 (Approval process).

(c)                                      If the Facility Agent
approves an Ancillary Facility (approval of which shall not be unreasonably
withheld), then:

(i)                                     the Lender concerned will become an Ancillary Lender;
and

(ii)                                  the
Ancillary Facility will be available,

with effect from the date
agreed by the Company and the Ancillary Lender.

9.3                           Approval
process

Not less than 5 Business
Days prior to the Commencement Date for an Ancillary Facility the Company shall
deliver to the Facility Agent:

(a)                                      a notice
specifying:

(i)                        the proposed Borrower(s) which
may use the Ancillary Facility;

(ii)                     the proposed Commencement Date and
expiry date of the Ancillary Facility;

(iii)                  the proposed type of Ancillary
Facility to be provided;

(iv)                 the proposed Ancillary Lender;

(v)                    the proposed applicable Ancillary
Commitment; and

(vi)                 the proposed currency in which the
Ancillary Facility may be drawn;

(b)                                     a copy of the
proposed Ancillary Facility Document; and

(c)                                      any other
information which the Facility Agent may reasonably require in connection with
the Ancillary Facility.

The Facility Agent shall
promptly notify the Company, the Ancillary Lender and the other Lenders of the
establishment of an Ancillary Facility.

9.4                           Terms
of Ancillary Facilities

(a)                                      Except as
provided below, the terms of any Ancillary Facility will be those agreed by the
Ancillary Lender and the Company.

(b)                                     However, those
terms:

(i)                        must be based upon normal
commercial terms at that time (except as varied by this Agreement);

(ii)                     may allow only Borrowers to use
the Ancillary Facility;

(iii)                  may not allow the Ancillary
Outstandings to exceed the Ancillary Commitment;

 41
 

 

(iv)                 may not allow the Ancillary Commitment
of a Lender to exceed the Available Commitment with respect to the Revolving
Facility of that Lender; and

(v)                    must ensure that the Ancillary
Commitment is reduced to nil, and that all Ancillary Outstandings are repaid
not later than the Termination Date for the Revolving Facility.

(c)                                      If there is any
inconsistency between any term of an Ancillary Facility and any term of this
Agreement, this Agreement shall prevail except for Clause 35.3 (Day Count Convention) which shall not
prevail for the purposes of calculating fees, interest or commission relating
to an Ancillary Facility other than the fee referred to in paragraph (d) of
Clause 9.7 (Interest, Commitment Commission
and Fees on Ancillary Facilities).

9.5                           Refinancing
of Ancillary Facility

(a)                                      No Ancillary
Lender may demand repayment or prepayment of any amounts under its Ancillary
Facility unless:

(i)                        the Total Revolving Commitments
have been cancelled in full, or the Facility Agent has declared all outstanding
Utilisations under the Revolving Facility immediately due and payable; or

(ii)                     the Ancillary Outstandings under
that Ancillary Facility can be repaid by a Revolving Loan.

(b)                                     The share of the
Ancillary Lender in a Revolving Loan being used to refinance that Ancillary
Lender’s Ancillary Facility will be that amount which will result (so far as
possible) in:

(i)                        the proportion which its share
of all outstanding Utilisations under the Revolving Facility bears to the
aggregate amount of the outstanding Utilisations under the Revolving Facility

being equal to:

(ii)                     the proportion which its Available
Commitment with respect to the Revolving Facility bears to the aggregate of the
Available Commitments,

in each case, assuming
the repayment of the relevant Ancillary Facility has taken place.

The share of the other
Lenders in any such Revolving Loan will be adjusted accordingly.

9.6                           Information

Each Borrower and each
Ancillary Lender shall, promptly upon request by the Facility Agent, supply the
Facility Agent with any information relating to the operation of an Ancillary
Facility  (including the Ancillary
Outstandings) as the Facility Agent may

 42
 

 

reasonably request from
time to time.  Each Borrower consents to
all such information being released to the Facility Agent and the other Finance
Parties.

9.7                           Interest,
Commitment Commission and Fees on Ancillary Facilities

(a)                                      The rate and time
of payment of interest, commission, fees and any other remuneration in respect
of each Ancillary Facility shall be determined by agreement between the
Ancillary Lender and the Borrower concerned (or the Company on behalf of any
other Borrower(s)) based upon normal market rates and terms.

(b)                                     A reference in
this Agreement to a Fee Letter shall include the provisions of any document
setting out the agreement between the Ancillary Lender and the Borrower in
respect of interest, commission, fees and other remuneration.

(c)                                      Accrued interest,
commission, fees and other remuneration in respect of an Ancillary Facility
shall also be payable to the Ancillary Lender on cancellation of the Ancillary
Commitment in respect of that Ancillary Facility at the time the cancellation
is effective if the Ancillary Commitment is cancelled in full.

(d)                                     The relevant
Borrower shall pay to the relevant Ancillary Lender a fee in the Base Currency
computed at the rate applicable to the Revolving Facility under paragraph (a)
of Clause 15.1 (Commitment Fee)
on the unused portion of any Ancillary Facility (being the Ancillary Commitment
applicable to that Ancillary Facility minus the Ancillary Outstandings under
that Ancillary Facility) for the period for which that Ancillary Facility is
made available by that Ancillary Lender.

(e)                                      The accrued
commitment fee in respect of an Ancillary Facility is payable on the last day
of each successive period of three Months which ends during the period for
which that Ancillary Facility is available, on the last day of the availability
period for that Ancillary Facility and on the cancelled amount of the Ancillary
Lender’s Ancillary Commitment for that Ancillary Facility at the time the
cancellation is effective.

9.8                           Reduction
and Increase of Revolving Commitment

The Revolving Commitment
of each Ancillary Lender shall be reduced pro
tanto by the amount of its Ancillary Commitment but shall
automatically increase upon that Ancillary Facility ceasing to be available to
the relevant Borrower or upon the Ancillary Facility being cancelled.

9.9                           Affiliates
of Lenders as Ancillary Lenders

(a)                                      Subject to the
terms of this Agreement, an Affiliate of a Lender may become an Ancillary
Lender.  In such case, the Lender and its
Affiliate shall be treated as a single Lender whose Revolving Commitment is the
amount set out opposite the relevant Lender’s name in Schedule 1 (The Original Lenders).  For the purposes of calculating the Lender’s
Available Commitment with

 43
 

respect to the Revolving Facility, the Lender’s
Commitment shall be reduced to the extent of the aggregate of the Ancillary
Commitments of its Affiliates.

(b)                                     The Company shall
specify any relevant Affiliate of a Lender in any notice delivered by the
Company to the Facility Agent pursuant to paragraph (a) of Clause 9.3 (Approval process).

(c)                                      If a Lender
assigns all of its rights and benefits or transfers all of its rights and
obligations to a New Lender (as defined in Clause 27 (Changes to the Lenders), its Affiliate
shall cease to have any obligations under this Agreement or any Ancillary
Document.

(d)                                     Where this
Agreement or any other Finance Document imposes an obligation on an Ancillary
Lender and the relevant Ancillary Lender is an Affiliate of a Lender which is
not a party to that document, the relevant Lender shall ensure that the
obligation is performed by its Affiliate.

 44
 

 

SECTION
4

REPAYMENT,
PREPAYMENT AND CANCELLATION

10.                           REPAYMENT

10.1                     Repayment of
Facility Term Loans

(a)                                      The Borrowers
under Facility A1 and Facility A2 shall repay the aggregate Facility A1 Loans
and the aggregate Facility A2 Loans in instalments by repaying on each Facility
A1 Repayment Date or each Facility A2 Repayment Date, as the case may be, an
amount equal to the relevant percentage of all Facility A1 Loans and all
Facility A2 Loans borrowed by the Borrowers as at close of business in London
on the last day of the Availability Period in relation to Facility A1 or
Facility A2 as set out opposite such Facility A1 Repayment Date or Facility A2
Repayment Date in the table below:

	
  Repayment Date

  	
   

  	
  Facility A1

  Repayment

  Instalment (in USD)

  	
   

  	
  Facility A2

  Repayment

  Instalment (in EUR)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date falling 36
  months after

  the Closing Date

  	
   

  	
  15%

  	
   

  	
  15%

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date falling 48
  months after

  the Closing Date

  	
   

  	
  15%

  	
   

  	
  15%

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date falling 60
  months after

  the Closing Date

  	
   

  	
  70%

  	
   

  	
  70%

  

 

(b)                                     If, in relation to
a Facility A1 Repayment Date or Facility A2 Repayment Date, the aggregate
amount of the Facility A1 Loans or Facility A2 Loans, as the case may be, made
to the Borrowers exceeds the Facility A1 Repayment Instalment or the Facility
A2 Repayment Instalment as the case may be to be repaid, the Company may, if it
gives the Facility Agent not less than five Business Days’ prior notice, select
which of the Facility A1 Loans or Facility A2 Loans will be wholly or partially
repaid so that the Facility A1 Repayment Instalment or Facility A2 Repayment
Instalment, as the case may be, is repaid on the relevant Repayment Date in
full.  The Company may not make a
selection if as a result more than one Facility A1 Loan or Facility A2 Loan
will be partially repaid. As between the Borrowers, all Facility A1 Repayment
Instalments and Facility A2 Repayment Instalments shall be applied at the
direction of the Company.

(c)                                      If the Company
fails to deliver a notice to the Facility Agent in accordance with paragraph
(b) above, the Facility Agent shall select the Facility A1 Loans and Facility
A2 Loans to be wholly or partially repaid.

(d)                                     No Borrower may
reborrow any part of a Term Facility which is repaid.

 45
 

 

10.2                     Repayment of
Revolving Loans

(a)                                      Each Borrower
which has drawn a Revolving Loan shall repay that Loan on the last day of its
Interest Period.

(b)                                     Where, on the same
day on which a Borrower is due to repay a Revolving Loan, such Borrower has
also requested a Rollover Loan be made to it, the amount to be so repaid and
the amount to be so drawn down shall be netted off against each other so that
the amount which that Borrower is actually required to repay or is entitled to
receive (as the case may be) shall be the net amount after such netting off.

10.3                     Effect of
Prepayment and Cancellation on Scheduled Repayments and Reductions

(a)                                      If the Company
cancels the whole or any part of the Facility A1 Commitments or the Facility A2
Commitments in accordance with Clause 11.6 (Right
of repayment and cancellation in relation to a single Lender or Issuing Bank)
or if any of the Facility A1 Commitments or the Facility A2 Commitments of any
Lender is reduced under Clause 11.1 (Illegality
of a Lender) then the amount of the Facility A1 Repayment Instalment
for each Facility A1 Repayment Date or Facility A2 Repayment Instalment for
each Facility A2 Repayment Date falling after that cancellation will reduce pro rata by the amount cancelled.

(b)                                     If the Company
cancels the whole or any part of the Facility A1 Commitments or the Facility A2
Commitments in accordance with Clause 11.3 (Voluntary
cancellation) or prepays any part of the Facility A1 Loan or
Facility A2 Loan in accordance with Clause 11.4 (Voluntary prepayment of Term Loans) then the amount so
cancelled or prepaid (as the case may be) shall be applied over the remaining
Facility A1 Repayment Instalments or Facility A2 Repayment Instalments as the
Company may select.

(c)                                      If any of the
Facility A1 Loans or Facility A2 Loans are prepaid in accordance with Clause
11.6 (Right of repayment and cancellation in
relation to a single Lender or Issuing Bank) or Clause 11.1 (Illegality of a Lender) then the amount of
the Facility A1 Repayment Instalment or Facility A2 Repayment Instalment for
each Facility A1 Repayment Date and each Facility A2 Repayment Date,
respectively after that prepayment will reduce pro
rata by the amount of the Facility A1 Loan or Facility A2 Loan
prepaid.

11.                           PREPAYMENT
AND CANCELLATION

11.1                     Illegality of
a Lender

If at any time, it
becomes unlawful in any applicable jurisdiction for a Lender to perform any of
its obligations as contemplated by this Agreement or to make, fund, issue or
maintain its participation in any Utilisation that Lender shall promptly notify
the Facility Agent upon becoming aware of that event and upon the Facility
Agent notifying the Company:

 46
 

 

(a)                                      that Lender shall
not thereafter be obliged to participate in any Utilisation and the Commitments
of that Lender shall immediately be reduced to zero and cancelled; and

(b)                                     the Company shall
and shall procure that each other Borrower will, on or before such date as the
Facility Agent shall have specified, (allowing the Borrower the full benefit of
any grace period permitted by law), repay that Lender’s participation in the
Utilisations made to it or that Borrower together with accrued interest on and
all other amounts owing to that Lender under the Finance Documents or replace
such Lender pursuant to Clause 38.4 (Replacement
of a Lender).

11.2                     Illegality of
Issuing Bank

If at any time after the
date of this Agreement it becomes unlawful for the Issuing Bank to issue or
leave outstanding any Bank Guarantee, the Revolving Facility shall cease to be
available for the issue of Bank Guarantees and the Company shall procure that
each other Borrower uses its best endeavours to procure the release of each
Bank Guarantee outstanding at such time.

11.3                     Voluntary
cancellation

(a)                                      Subject to
paragraph (b) below the Company may, if it gives the Facility Agent not less
than 3 Business Days’ (or such shorter period as the Majority Lenders may
agree) prior notice, cancel the whole or any part of an Available
Facility.  Any cancellation under this
Clause 11.3 shall reduce rateably the Commitments of the Lenders under that
Facility.

(b)                                     The Company shall
not cancel any part of the Facility A1 Available Commitment or the Facility A2
Available Commitment unless the aggregate Base Currency Amount of such
cancellations is at least EUR 1,000,000 or the USD equivalent thereof.

11.4                     Voluntary
prepayment of Term Loans

(a)                                      Subject to
paragraph (b) below, the Borrowers may, if the Company gives the Facility Agent
not less than 3 Business Days’ (or such shorter period as the Majority Lenders
may agree) prior notice, prepay the whole or any part of any Term Loans which
such Borrowers may select (but, if in part, being an amount that reduces the
Base Currency Amount of the Term Loans by a minimum amount of EUR 1,000,000) or
the USD equivalent thereof.

(b)                                     A Term Loan may
only be prepaid after the last day of the Availability Period (or, if earlier,
the day on which the applicable Available Facility is zero).

11.5                     Voluntary
prepayment of Revolving Utilisations

The Borrower to which a
Revolving Utilisation has been made may, if it or the Company gives the
Facility Agent not less than 3 Business Days’ (or such shorter period as the
Majority Lenders may agree) prior notice, prepay the whole or any part of a
Revolving Utilisation (but if in part, being an amount that reduces the Base

 47
 

Currency Amount of the
Revolving Utilisation by a minimum amount of USD 1,000,000).

11.6                     Right of
repayment and cancellation in relation to a single Lender or Issuing Bank

(a)                                      If:

(i)                        any sum payable to any Lender
by an Obligor is required to be increased under sub-paragraph (a)(iii) of
Clause 16.2 (Tax gross up);

(ii)                     any Lender or Issuing Bank claims
indemnification from the Company or any other Obligor under Clause 16.3 (Tax indemnity) or Clause 17.1 (Increased costs); or

(iii)                  any Lender notifies the Facility
Agent of its Additional Cost Rate under paragraph 3 of Schedule 4 (Mandatory Cost Formulae),

the Company may, whilst
(in the case of paragraphs (i) and (iii) above) the circumstance giving rise to
the requirement or indemnification continues or whilst (in the case of
sub-paragraph (iii) above) that Additional Cost Rate is greater than zero, give
the Facility Agent notice of cancellation of the Commitments of that Lender and
its intention to procure the repayment of that Lender’s participation in the
Utilisations.

(b)                                     On receipt of a
notice referred to in paragraph (a) above, the Commitments of that Lender shall
immediately be reduced to zero.

(c)                                      On the last day
of each Interest Period which ends after the Company has given notice under
paragraph (a) above (or, if earlier, the date specified by the Company in that
notice), each Borrower to which a Utilisation is outstanding shall repay that
Lender’s participation in that Utilisation.

11.7                     Exit

(a)                                      For the purpose
of this Clause 11.7:

(i)                        “Change of
Control” means any person or group of persons acting in concert
(other than the Initial Investors) gains control of the Company provided that, no Change of Control shall be deemed to occur
if the board of directors of the Company shall consist of a majority of
continuing directors.

(ii)                     For the purposes of the definition
of “Change of Control” in this Clause 11.7:

(A)                “acting in concert”
means, a group of persons who, pursuant to an agreement or understanding
(whether formal or informal), actively co-operate, through the acquisition by
any of them, either directly or indirectly, of shares in the Company, to obtain
or consolidate control of the Company;

 48
 

 

(B)                  “control” means,
in relation to the Company, the power (whether by way of ownership of shares,
proxy, contract, agency or otherwise) to:

(i)                                     cast,
or control the casting of, more than one half of the maximum number of votes
that might be cast at a general meeting of the Company; or

(ii)                                  appoint
or remove all, or the majority, of the directors or other equivalent officers
of the Company; or

(iii)                               give
directions with respect to the operating and financial policies of the Company
generally which the directors or other equivalent officers of the Company are
obliged to comply with;

(C)                  “continuing directors”
means directors of the Company who were immediately prior to the occurrence of
any event or circumstance that would (but for the proviso set out in
sub-paragraph (a)(i) above) result in a Change of Control, directors, nominees
of such directors or nominees of the Initial Investors.

(b)                                     Upon the
occurrence of a Change of Control or the sale of the whole or substantially the
whole of the Group’s business and assets, the Facility Agent (acting on the
instructions of the Majority Lenders) may by not less than 90 days notice to
the Company, cancel the Facilities in full and require that the Term Loans,
each Revolving Loan and each Bank Guarantee shall be prepaid in full together
with interest thereon and all other amounts accrued and owing by each Party
(other than a Finance Party) under the Finance Documents.

11.8                     Equity
Proceeds

(a)                                      For the purpose
of this Clause 11.8, “Equity Proceeds”
means the cash proceeds (after deducting any costs reasonably incurred in
raising such equity proceeds) in excess of EUR 40,000,000 raised from the
primary issuance by the Company or any other member of the Group of shares or
other equity instrument on any recognised stock exchange or other capital
market.

(b)                                     No member of the
Group shall be permitted to raise Equity Proceeds to fund (directly or
indirectly) the payment of a dividend or other distribution to any shareholder
of the Company.

(c)                                      Notwithstanding
the terms of paragraph (d) below, any Equity Proceeds specifically raised for
the purpose of prepaying the Facilities shall be applied in payment of the
Facilities within 5 Business Days of receipt.

(d)                                     Subject to
paragraph (c) above, the Company shall procure that each member of the Group
shall apply an amount equal to the amount of Equity Proceeds received by it for
the particular purpose for which they were raised provided
that such purpose is permitted under this Agreement (a “Specified Purpose”)

 49
 

 

within 12 months of the date of receipt (or shall be committed to be
applied for such purpose within such period and applied within 24 months of the
date of receipt).  If such Equity
Proceeds are not applied towards a Specified Purpose within the time periods
referred to above, then the Company shall procure that the Borrowers prepay
Loans in an amount equal to 50% of the amount of such Equity Proceeds together
with interest thereon and all other amounts accrued and owing by each Party
(other than a Finance Party) under the Finance Documents subject to Clause
11.12 (Prepayment elections).  The prepayments shall be applied under Clause
11.10 (Application of prepayments).  Equity Proceeds shall not be required to be
applied in prepayment of the Facilities if the Non-Leveraged Criteria has been
met prior to the last date upon which such prepayment is required to be made.

11.9                     Disposal
proceeds

(a)                                      For the purposes
of this Clause 11.9:

“Disposal” means a sale, lease, transfer,
loan or other disposal by a person of any asset, undertaking or business
(whether voluntary or involuntary and whether as a single transaction or a
series of related transactions).

“Disposal Proceeds” means the cash
consideration received by any member of the Group (including any amount
received in repayment of intercompany debt by a member of the Group from a
company disposed of) for any Disposal made by any member of the Group after
deducting:

(i)                        amounts which are to be applied
in the reinvestment of assets or towards acquisitions permitted under Clause
25.7 (Acquisitions) within twelve
months of receipt of such proceeds (or committed for such application within
such period and applied within eighteen months of receipt);

(ii)                     expenses incurred by any member of
the Group with respect to that Disposal to person(s) who are not members of the
Group;

(iii)                  any Tax incurred and required to be
paid by the seller in connection with that Disposal (as reasonably determined
by the seller, on the basis of existing rates and taking account of any
available credit, deduction or allowance);

(iv)                 the amount of any reserve maintained
by the relevant member of the Group, acting reasonably, in accordance with the
Accounting Principles with respect to purchase price adjustment or
indemnification obligations owing pursuant to the documentation pursuant to
which such Disposal is consummated (with any unused portion of such reserve to
constitute Disposal Proceeds on the date upon which the purchase price
adjustment or indemnification obligations terminate or such reserve is reduced
other than in connection with a payment to the relevant purchaser);

 50
 

 

(v)                    the amount of the Disposal Proceeds
which is immediately upon such Disposal occurring required to be applied in
repaying Financial Indebtedness of the member of the Group making such Disposal
where such Financial Indebtedness relates to the asset disposed of;

(vi)                 EUR 80,000,000 (or its equivalent in
any currency) in any one year and an aggregate amount of EUR 200,000,000 during
the life of the Facilities,

and provided that the proceeds of any Disposal
which are less than EUR 1,000,000 and the proceeds of any Permitted
Disposal shall be excluded from all consideration.

(b)                                     Subject to
paragraph (c) below the Company shall ensure that it and the other Borrowers
prepay Loans in an amount equal to the Disposal Proceeds promptly upon receipt
of those proceeds subject to Clause 11.12 (Prepayment
elections). The prepayments will be applied under Clause 11.10 (Application of prepayments).

(c)                                      Notwithstanding
paragraph (b) above, no prepayment of Disposal Proceeds shall be required if
the Non-Leveraged Criteria has been met.

11.10               Application of
mandatory prepayments

(a)                                      Subject to
paragraph (b) below a prepayment made under Clause 11.8 (Equity Proceeds) or 11.9 (Disposal Proceeds) shall be applied as the
Company directs unless such prepayment would cause the total aggregate amount
of all such prepayments in that financial year to exceed EUR 40,000,000 in
which case the portion of such prepayment in excess of EUR 40,000,000 and all
subsequent mandatory prepayments during that financial year shall be applied pro rata to the remaining scheduled
principal repayments under the Term Facilities.

(b)                                     Notwithstanding
paragraph (a) above, the Company shall only be obliged to procure the
prepayment of Loans from proceeds raised by members of the Group that are not
U.S. Companies towards Loans borrowed by U.S. Borrowers and from proceeds
raised by members of the Group that are U.S. Companies towards Loans
borrowed by non-U.S. Borrowers only to the extent such prepayment would not
cause any material adverse tax consequences to the Group. The Company shall
ensure that all transactions related to the raising of Equity Proceeds and/or
disposals are not structured in such a way so that the limitations on
guarantees set out in Clause 21 (Guarantee
and Indemnity) or the provisions of this paragraph (b) would operate
in a way that would excuse the making of any prepayment otherwise due under
this Clause 11.

11.11               Restrictions

(a)                                      Any notice of
cancellation or prepayment given by any Party under this Clause 11 shall be
irrevocable and, unless a contrary indication appears in this

 51
 

 

Agreement, shall specify the date or dates upon which the relevant
cancellation or prepayment is to be made and the amount of that cancellation or
prepayment.

(b)                                     Any prepayment
under this Agreement shall be made together with accrued interest on the amount
prepaid and Break Costs without premium or penalty.

(c)                                      No Borrower may
reborrow any part of a Term Facility which is prepaid.

(d)                                     Unless a contrary
indication appears in this Agreement, any part of the Revolving Facility which
is prepaid (other than under Clause 11.8 (Equity
Proceeds) or Clause 11.9 (Disposal proceeds) may be reborrowed in
accordance with the terms of this Agreement.

(e)                                      The Borrowers
shall not repay or prepay all or any part of the Utilisations or cancel all or
any part of the Commitments except at the times and in the manner expressly
provided for in this Agreement.

(f)                                        No amount of
the Total Commitments cancelled under this Agreement may be subsequently
reinstated.

(g)                                     If the Facility
Agent receives a notice under this Clause 11 it shall promptly forward a copy
of that notice to the Company and the affected Lenders, as appropriate.

11.12               Prepayment
elections

(a)                                      Any prepayment
under paragraph (b) of Clause 11.7 (Exit),
Clause 11.8 (Equity Proceeds) or
Clause 11.9 (Disposal proceeds)
may, if the Company gives the Facility Agent not less than 3 Business Days (or
such shorter period as the Majority Lenders may agree) prior written notice, be
applied in prepayment of a Loan on the last day of the Interest Period relating
to that Loan.

(b)                                     If the Company
makes an election under paragraph (a) above of this Clause 11.12 then that Loan
will become due and payable in the required amount on the last day of that
Interest Period.

(c)                                      No election can
be made by the Company under paragraph (a) above and no election already made
by the Company under that paragraph shall apply (unless the Majority Banks
otherwise agreed in writing) if an Event of Default has occurred and is
continuing.

(d)                                     The Facility Agent
shall notify the Lenders as soon as possible of any prepayment of any Facility
A1 Loan or Facility A2 Loan to be made under Clause 11.4 (Voluntary prepayment of Term Loans),
paragraph (b) of Clause 11.7 (Exit),
Clause 11.8 (Equity Proceeds) or
Clause 11.9 (Disposal, proceeds).

 52
 

 

11.13               Automatic
Cancellation

(a)                                      If the Closing
Date does not occur on or prior to the last day of the Availability Period for
the Term Facilities, then all Facilities shall be automatically cancelled in
full on that date.

(b)                                     The Revolving
Commitments shall be cancelled in full and all Revolving Utilisations repaid in
full immediately upon the repayment or prepayment in full of the Term Loans or
cancellation in full of the Term Facilities.

11.14               Restrictions on
upstreaming cash

(a)                                      If:

(i)                        any amount is required to be
applied in prepayment or repayment of the Facilities from Disposal Proceeds
under Clause 11.9 (Disposal Proceeds)
but, in order to be so applied, a member of the Group has to make payments
upstream or otherwise transfer moneys to another a member of the Group to
effect that prepayment or repayment; and

(ii)                     those moneys cannot be so
upstreamed or transferred without:

(A)                breaching legal prohibitions preventing
the recipient of the proceeds from making the relevant prepayment or making the
funds available to a member of the Group that can make such prepayment; or

(B)                  a member of the Group incurring a
material cost or expense (including material Taxes or other liabilities); and

(iii)                  The Company (acting reasonably) has
determined that such upstreaming or transfer will present a material risk of
liability for the member of the Group concerned or its directors or officers,

there will be no
obligation to make that payment or repayment until that impediment no longer
applies.

(b)                                     Each Obligor will
use all reasonable endeavours:

(i)                        to overcome any such
impediment; and

(ii)                     to use cash held by any other
member of the Group to prepay an equivalent amount of the Facilities where such
would not be materially prejudicial to the liquidity needs of the Group or the
availability thereof to members of the Group requiring cash resources and would
not give rise to any of the issues referred to in sub-paragraphs (a)(i) and
(ii) above.

 53
 

 

SECTION
5

COSTS
OF UTILISATION

12.                           INTEREST

12.1                     Calculation
of interest

The rate of interest on
each Loan for each Interest Period is the percentage rate per annum which is
the aggregate of the applicable:

(a)                                      Margin;

(b)                                     LIBOR or, in
relation to any Loan in euro, EURIBOR; and

(c)                                      Mandatory Cost,
if any.

12.2                     Payment of
interest

The Borrower to which a
Loan has been made shall pay accrued interest on that Loan on the last day of
each Interest Period (and, if any Interest Period is longer than six Months, on
the dates falling at six Monthly intervals after the first day of that Interest
Period).

12.3                     Margin
Ratchet

(a)                                      Subject to
paragraph (b) below and Clause 12.4 (Default
Margin), if the ratio of Consolidated Total Net Debt to Consolidated
Adjusted EBITDA in respect of the most recent Relevant Period (as defined in
Clause 24 (Financial Covenants))
falls within one of the ranges set out in column 1 of the margin grid table set
out below then the Margin in respect of Facility A1, Facility A2 and the
Revolving Facility shall be the percentage per annum set opposite the range
into which that Relevant Ratio falls.

	
  Column 1

  	
   

  	
  Column 2

  
	
   

  	
   

  	
   

  
	
  Relevant
  Ratio

  	
   

  	
  Margin % per annum for Facility

  A1, A2 and Revolving Facility

  
	
   

  	
   

  	
   

  
	
  Greater than
  3.5:1

  	
   

  	
  0.90

  
	
   

  	
   

  	
   

  
	
  Equal to or less
  than 3.5:1 but greater than 3:1

  	
   

  	
  0.75

  
	
   

  	
   

  	
   

  
	
  Equal to or less
  than 3:1 but greater than 2.5:1

  	
   

  	
  0.65

  
	
   

  	
   

  	
   

  
	
  Equal to or less
  than 2.5:1 but greater than 2:1

  	
   

  	
  0.55

  
	
   

  	
   

  	
   

  
	
  Equal to or less
  than 2:1

  	
   

  	
  0.45

  

 

(b)                                     From the date
falling 12 months after the Closing Date any revised Margin provided for in
this Clause 12.3 in relation to each Loan will become effective

 54
 

on the date on which the relevant Compliance
Certificate is delivered to the Facility Agent.

(c)                                      If the annual
audited financial statements of the Group and related Compliance Certificate
received by the Facility Agent show that a Margin or Commitment Fee reduction
should not have occurred during a certain period, the relevant Borrowers shall
promptly pay to the Facility Agent any amounts necessary to put the Facility
Agent and the Lenders in the position they would have been in had the Margin or
Commitment Fee reduction not occurred.

(d)                                     If the annual
audited financial statements of the Group and related Compliance Certificate
received by the Facility Agent show that a Margin or Commitment Fee reduction
should have occurred during a certain period the Margin or Commitment Fee for
future Interest Periods, shall be reduced by any amounts necessary to put the
relevant Borrower in the position they would have been in had the Margin and
Commitment Fee reduction occurred.

12.4                     Default
Margin

Notwithstanding the terms
of Clause 12.3 (Margin Ratchet),
no reduction in the Margin shall be effected whilst an Event of Default is
continuing.  On the occurrence of an
Event of Default, the Margin shall immediately revert to 0.75% per annum.  On the date upon which such Event of Default
is remedied or waived by the Majority Lenders, the Margin shall be recalculated
by the Facility Agent by reference to the ratio of Consolidated Total Net Debt
to Consolidated Adjusted EBITDA set out in the most recent Compliance
Certificate delivered to the Facility Agent.

12.5                     Default
Interest

(a)                                      If an Obligor
fails to pay any amount payable by it under a Finance Document on its due date,
and if the Facility Agent, acting on the instructions of the Majority Lenders,
gives notice that the default interest rate shall apply, such amount shall, subject
to any increased interest rate pursuant to paragraph (b) below, accrue interest
or, insofar as it relates to unpaid interest, shall give rise to a claim for
lump sum damages from the due date up to the date of actual payment (both
before and after judgment) at a rate which is one per cent higher than the rate
which would have been payable if the overdue amount had, during the period of
non payment, constituted a Loan in the currency of the overdue amount for
successive Interest Periods, each of a duration selected by the Facility Agent
(acting reasonably).  Any interest
accruing under this Clause 12.5 shall be immediately payable by the Obligor on
demand by the Facility Agent.

(b)                                     If any overdue
amount consists of all or part of a Loan which became due on a day which was
not the last day of an Interest Period relating to that Loan:

(i)                        the first Interest Period for
that overdue amount shall have a duration equal to the unexpired portion of the
current Interest Period relating to that Loan; and

 55
 

 

(ii)                     the rate of interest applying to
the overdue amount during that first Interest Period shall be one per cent.
higher than the rate which would have applied if the overdue amount had not
become due.

(c)                                      Default interest
(if unpaid) arising on an overdue amount will be compounded with the overdue
amount at the end of each Interest Period applicable to that overdue amount but
will remain immediately due and payable.

12.6                     Notification
of rates of interest

The Facility Agent shall
promptly notify the Lenders and the relevant Borrower(s) of the determination
of a rate of interest under this Agreement.

13.                           INTEREST
PERIODS AND TERMS

13.1                     Selection of
Interest Periods and Terms

(a)                                      A Borrower or the
Company (on behalf of any other Borrower) may select an Interest Period for a
Loan in the Utilisation Request for that Loan or (if the Loan is a Term Loan
and has already been borrowed) in a Selection Notice.

(b)                                     Each Selection
Notice is irrevocable and must be delivered to the Facility Agent by the
Borrower (or the Company on behalf of any other Borrower) to which that Term
Loan was made not later than the Specified Time.

(c)                                      If a Borrower (or
the Company on behalf of any other Borrower) fails to deliver a Selection
Notice to the Facility Agent in accordance with paragraph (b) above, the
relevant Interest Period will, subject to Clause 13.2 (Changes to Interest Periods), be one
Month.

(d)                                     Subject to this
Clause 13, a Borrower (or the Company on behalf of any other Borrower) may
select an Interest Period of one, two, three or six Months or any other period
agreed between the Company and the Facility Agent (acting on the instructions
of the Majority Lenders). In addition a Borrower (or the Company on its behalf)
may select an Interest Period of (in relation to Facility A) a period of less
than one month if necessary to ensure that there are Facility A1 Loans and
Facility A2 Loans (with an aggregate Base Currency Amount equal to or greater
than the Facility A1 Repayment Instalment or the Facility A2 Repayment
Instalment) which have an Interest Period ending on a Facility A1 Repayment
Date or a Facility A2 Repayment Date as the case may be for the Borrowers to
make the Facility A1 Repayment Instalment or the Facility A2 Repayment
Instalment due on that date.

(e)                                      An Interest
Period for a Loan shall not extend beyond the Termination Date applicable to
its Facility.

(f)                                        Each Interest
Period for a Term Loan shall start on the Utilisation Date or (if a Loan has
already been made) on the last day of its preceding Interest Period.

(g)                                     A Revolving Loan
has one Interest Period only.

 56
 

 

(h)                                     Prior to the
Syndication Date, Interest Periods shall be one month or such other period as
the Facility Agent and the Company may agree and any Interest Period which
would otherwise end during the month preceding or extend beyond the Syndication
Date shall end on the Syndication Date.

13.2                     Changes to
Interest Periods

(a)                                      Prior to
determining the interest rate for a Facility A1 Loan or Facility A2 Loan, the
Facility Agent may shorten an Interest Period for any Facility A1 Loan or
Facility A2 Loan to ensure that there are sufficient Facility A1 Loans or
Facility A2 Loans, as the case may be (with an aggregate Base Currency Amount
equal to or greater than the Facility A1 Repayment Instalment or the Facility
A2 Repayment Instalment) which have an Interest Period ending on a Facility A1
Repayment Date or a Facility A2 Repayment Date, respectively) for the Borrowers
to make the Facility A1 Repayment Instalment or the Facility A2 Instalment) due
on that date.

(b)                                     If the Facility
Agent makes any of the changes to an Interest Period referred to in this Clause
13.2, it shall promptly notify the Company and the Lenders.

13.3                     Consolidation
of Facility A1 Loans and Facility A2 Loans

(a)                                      Subject to
paragraph (b) below, if two or more Interest Periods:

(i)                        relate to the same Facility;

(ii)                     end on the same date; and

(iii)                  are made to the same Borrower,

those Loans will, unless
that Borrower (or the Company on its behalf) specifies to the contrary in the
Selection Notice for the next Interest Period, be consolidated into, and
treated as, a single Loan under the same 
Facility on the last day of the relevant Interest Period.

(b)                                     Subject to Clause
4.5 (Maximum number of Utilisations)
and Clause 5.3 (Currency and amount)
if a Borrower (or the Company on its behalf) requests in a Selection Notice
that a Term Loan be divided into two or more Term Loans, that Term Loan will,
on the last day of its Interest Period, be so divided with Base Currency
Amounts specified in that Selection Notice, being an aggregate Base Currency
Amount equal to the amount of the Term Loan immediately before its division,
having taken into account any repayment to be made on that day.

14.                           CHANGES
TO THE CALCULATION OF INTEREST

14.1                     Absence of
quotations

Subject to Clause 14.2 (Market disruption), if EURIBOR or, if
applicable, LIBOR is to be determined by reference to the Reference Banks but a
Reference Bank does not supply a quotation by the Specified Time on the
Quotation Day, the applicable LIBOR

 

 57
 

 

or EURIBOR shall be determined on the basis of the quotations of the
remaining Reference Banks.

14.2                  Market
disruption

(a)                                      If a Market
Disruption Event occurs in relation to a Loan for any Interest Period, then the
rate of interest on each Lender’s share of that Loan for the Interest Period
shall be the rate per annum which is the sum of:

(i)                        the Margin;

(ii)                     the rate notified to the Facility
Agent by that Lender as soon as practicable and in any event before interest is
due to be paid in respect of that Interest Period, to be that which expresses
as a percentage rate per annum the cost to that Lender of funding its
participation in that Loan from whatever source it may reasonably select; and

(iii)                  the Mandatory Cost, if any,
applicable to that Lender’s participation in the Loan.

(b)                                     In this Agreement “Market Disruption Event” means:

(i)                        at or about noon on the
Quotation Day for the relevant Interest Period the Screen Rate not being
available and none or only one of the Reference Banks supplying a rate to the
Facility Agent to determine LIBOR or, if applicable, EURIBOR for the relevant
currency and Interest Period; or

(ii)                     before close of business in London
on the Quotation Day for the relevant Interest Period, the Facility Agent
receiving notifications from a Lender or Lenders (whose participations in a
Loan exceed 50 per cent. of that Loan) that the cost to it of obtaining
matching deposits in the Relevant Interbank Market would be in excess of LIBOR
or, if applicable, EURIBOR.

14.3                  Alternative
basis of interest or funding

(a)                                      If a Market
Disruption Event occurs and the Facility Agent or the Company so requires, the
Facility Agent and the Company shall enter into negotiations (for a period of
not more than thirty days) with a view to agreeing a substitute basis for
determining the rate of interest.

(b)                                     Any alternative
basis agreed pursuant to paragraph (a) above shall, with the prior consent of
all the Lenders and the Company, be binding on all Parties.

14.4                  Break Costs

(a)                                      Subject to
paragraph (b) below, each Borrower shall, within three Business Days of demand
by a Finance Party, pay to that Finance Party its Break Costs attributable to
all or any part of a Loan or Unpaid Sum being paid by that Borrower on a day
other than the last day of an Interest Period for that Loan or Unpaid Sum.

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(b)                                     Subject to
paragraph (a) above, in order to avoid Break Costs arising on mandatory
prepayments, unless an Event of Default is outstanding, the Company shall be
entitled to defer each Mandatory Prepayment in respect of Disposal Proceeds and
Equity Proceeds until the end of the Interest Periods which are current at the
date upon which the repayment would otherwise become due.

(c)                                      Each Lender
shall, as soon as reasonably practicable after a demand by the Facility Agent,
provide a certificate confirming the amount and basis of calculation of its
Break Costs for any Interest Period in which they accrue.

15.                           FEES

15.1                     Commitment
fee

(a)                                      The Company shall
pay to the Facility Agent (for the account of each Lender) a fee in the Base
Currency computed at the rate of (during the period commencing on (and
including) the Closing Date and ending on the last day of the relevant
Availability Period) a rate equal to 40 per cent. of the applicable Margin per
annum on that Lender’s Available Commitment under the Revolving Facility for
the Availability Period.

(b)                                     The accrued
commitment fee is payable:

(i)                        on the last day of each
successive period of three Months which ends during the relevant Availability
Period;

(ii)                     on the last day of the relevant
Availability Period; and

(iii)                  on the cancelled amount of the
relevant Lender’s Commitment at the time the cancellation is effective.

15.2                     Upfront fee

The Company shall pay to
the Mandated Lead Arrangers an upfront fee in the amount and at the times
agreed in a Fee Letter.

15.3                     Facility
Agency fee

The Company shall pay to
(or procure payment to) the Facility Agent (for its own account) a facility
agency fee in the amount and at the times agreed in a Fee Letter.

 

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SECTION
6

ADDITIONAL PAYMENT OBLIGATIONS

16.                           TAX GROSS
UP AND INDEMNITIES

16.1                     Definitions

In this Clause 16:

“Protected Party” means a Finance Party
which is or will be, for or on account of Tax, subject to any liability or
required to make any payment in relation to a sum received or receivable (or
any sum deemed for the purposes of Tax to be received or receivable) under a
Finance Document.

“Qualifying Lender” means:

(a)                                      a
Lender which is incorporated or resident or acting out of a Facility Office in
a member state of the European Union; or

(b)                                     a
Treaty Lender; or

(c)                                      otherwise
entitled to receive interest payments under this Agreement from that Borrower
without any Tax Deduction.

“Tax Credit” means a credit against, relief
or remission for, or repayment of, any Tax.

“Tax Deduction” means a deduction or
withholding for or on account of Tax from a payment under a Finance Document.

“Tax Payment” means either the increase in a
payment made by an Obligor to a Finance Party under Clause 16.2 (Tax gross up) or a payment under Clause
16.3 (Tax indemnity).

“Treaty Lender” means a Lender which:

(a)                                      is
treated as a resident of a Treaty State for the purposes of the Treaty;

(b)                                     does
not carry on a business in the Federal Republic of Germany through a permanent
establishment with which that Lender’s participation in the Loan is effectively
connected.

“Treaty State” means a jurisdiction having a
double taxation agreement (a “Treaty”)
with the Federal Republic of Germany which makes provision for full exemption
from tax imposed by the Federal Republic of Germany on interest.

Unless a contrary
indication appears, in this Clause 16 a reference to “determines” or “determined” means a determination made in the absolute
discretion of the person making the determination.

16.2                     Tax gross up

(a)                                      Subject to
paragraph (b) below:

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(i)                        each Obligor shall make all
payments to be made by it without any Tax Deduction, unless a Tax Deduction is
required by law;

(ii)                     the Company shall promptly upon
becoming aware that an Obligor must make a Tax Deduction (or that there is any
change in the rate or the basis of a Tax Deduction) notify the Facility Agent
accordingly.  Similarly, a Lender or the
Issuing Bank shall notify the Facility Agent on becoming so aware in respect of
a payment to that Lender or the Issuing Bank. 
If the Facility Agent receives such notification from a Lender or
Issuing Bank it shall notify the Company and that Obligor;

(iii)                  if a Tax Deduction is required by law
to be made by an Obligor the amount of the payment due from that Obligor shall
be increased to an amount which (after making any Tax Deduction) leaves an
amount equal to the payment which would have been due if no Tax Deduction had
been required;

(iv)                 an Obligor is not required to make an
increased payment to a Lender under paragraph (iii) above for a Tax Deduction
in respect of tax imposed by the relevant tax authorities from a payment of
interest on a Loan, if on the date on which the payment falls due the payment
could have been made to the relevant Lender without a Tax Deduction if it was a
Qualifying Lender, but on that date that Lender is not or has ceased to be a
Qualifying Lender other than as a result of any change after the date it became
a Lender under this Agreement in (or in the interpretation, administration, or
application of) any law, or any published practice or concession of any
relevant taxing authority;

(v)                    if an Obligor is required to make a
Tax Deduction, that Obligor shall make that Tax Deduction and any payment
required in connection with that Tax Deduction within the time allowed and in
the minimum amount required by law; and

(vi)                 within thirty days of making either a
Tax Deduction or any payment required in connection with that Tax Deduction,
the Obligor making that Tax Deduction shall deliver to the Facility Agent for
the Finance Party entitled to the payment evidence reasonably satisfactory to
that Finance Party that the Tax Deduction has been made or (as applicable) any
appropriate payment paid to the relevant taxing authority.

(b)                                     No such additional
amounts referred to in paragraph (a) above shall be required to be paid to any
Lender with respect to any US withholding taxes that would not have been
imposed but for the failure to comply with paragraph (a) of Clause 16.7 (Nil Rate Treaty Lender and US Lender).

16.3                     Tax indemnity

(a)                                      The Company shall
(within three Business Days of demand by the Facility Agent) pay (or procure
payment) to a Protected Party an amount equal to the

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loss, liability or cost which that Protected
Party determines will be or has been (directly or indirectly) suffered for or
on account of Tax by that Protected Party in respect of a Finance Document.

(b)                                     Paragraph (a)
above shall not apply:

(i)                        with respect to any Tax
assessed on a Finance Party:

(A)                under the law of the jurisdiction in
which that Finance Party is incorporated or, if different, the jurisdiction (or
jurisdictions) in which that Finance Party is treated as resident for tax
purposes; or

(B)                  under the law of the jurisdiction in
which that Finance Party’s Facility Office is located in respect of amounts
received or receivable in that jurisdiction,

if that Tax is imposed on
or calculated by reference to the net income received or receivable (but not
any sum deemed to be received or receivable) by that Finance Party; and

(ii)                     to the extent a loss, liability or
cost:

(A)                is compensated for by an increased
payment under Clause 16.2 (Tax gross up); or

(B)                  would have been compensated for by an
increased payment under Clause 16.2 (Tax gross up)
but was not so compensated solely because one of the exclusions in
sub-paragraph (iv) of Clause 16.2(a) (Tax gross up)
and in Clause 16.2(b) applied.

(c)                                      A Protected Party
making, or intending to make a claim pursuant to paragraph (a) above shall
promptly notify the Facility Agent of the event which will give, or has given,
rise to the claim, following which the Facility Agent shall notify the Company.

(d)                                     A Protected Party
shall, on receiving a payment from an Obligor under this Clause 16.3, notify
the Facility Agent.

16.4                     Tax Credit

If an Obligor makes a Tax
Payment other than with respect to United States Taxes and the relevant Finance
Party determines in good faith that:

(a)                                      a Tax Credit is
attributable to that Tax Payment; and

(b)                                     that Finance Party
has obtained, utilised and retained that Tax Credit,

the Finance Party shall
pay an amount to the Obligor which that Finance Party determines will leave it
(after that payment) in the same after Tax position as it would have been in
had the Tax Payment not been made by the Obligor.

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16.5                     Stamp Taxes

The Company shall pay
and, within three Business Days of demand, indemnify each Finance Party and
each Mandated Lead Arranger against any cost, loss or liability that Finance
Party or any Mandated Lead Arranger incurs in relation to all stamp duty,
registration and other similar Taxes or fees payable in respect of any Finance
Document.

16.6                     Value Added
Tax

(a)                                      All consideration
expressed to be payable under a Finance Document by any Party to a Finance
Party shall be deemed to be exclusive of any VAT. If VAT is chargeable on any
supply made by any Finance Party to any Party in connection with a Finance
Document, that Party shall pay to the Finance Party (in addition to and at the
same time as paying the consideration) an amount equal to the amount of the VAT
against delivery of a invoice which meets the respective criteria for VAT
refund.

(b)                                     Where a Finance
Document requires any Party to reimburse a Finance Party for any costs or
expenses, that Party shall also at the same time pay and indemnify that Finance
Party against all VAT incurred by the Finance Party in respect of the costs or
expenses to the extent that the Finance Party reasonably determines that it is
not entitled to credit or repayment of the VAT. The respective Finance Party shall
reimburse the respective Party any VAT refunded.

16.7                     Nil Rate
Treaty Lender and US Lender

(a)                                      Each Lender
making a loan to a U.S. Borrower that is not a United States Person (as such
term is defined in Section 7701(a)(30) of the Internal Revenue Code) for U.S.
federal income tax purposes (a “Non US Lender”)
shall deliver to Facility Agent for transmission to U.S. Borrower, on or prior
to the Closing Date (in the case of each Lender listed on the signature pages
hereof on the Closing Date) or on or prior to the date of the Transfer
Certificate pursuant to which it becomes a Lender (in the case of each other
Lender), and at such other times as may be necessary in the determination of
U.S. Borrower or Facility Agent (each in the reasonable exercise of its discretion),
(i) two original copies of Internal Revenue Service Form W 8BEN, W 8ECI and/or
W-8IMY (or any successor forms), properly completed and duly executed by such
Lender, and such other documentation required under the Internal Revenue Code
or reasonably requested by U.S. Borrower to establish that such Lender is not
subject to deduction or withholding of United States federal income tax with
respect to any payments to such Lender of principal, interest, fees or other
amounts payable under any of the Finance Documents, or (ii) if such Lender is
not a “bank” or other Person described in Section 881(c)(3) of the Internal
Revenue Code and cannot deliver Internal Revenue Service Form W 8ECI pursuant
to (i) above, a Certificate re Non Bank Status together with two original
copies of Internal Revenue Service Form W 8BEN and/or W-8IMY (or any successor
form), properly completed and duly executed by such Lender, in each case
together with such other documentation

 63
 

 

required under the Internal Revenue Code or reasonably
requested by U.S. Borrower to establish that such Lender is not subject to
deduction or withholding of United States federal income tax with respect to
any payments to such Lender of interest payable under any of the Finance
Documents.  If any Lender provides an
Internal Revenue Service Form W-8IMY, such Lender must also attach the
additional documentation that must be transmitted with Internal Revenue Service
Form W-8IMY, including the appropriate forms described in this Clause 16.7.

(b)                                     Each Lender making
a Loan to U.S. Borrower that is a United States person (as such term is defined
in Section 7701(a)(30) of the Internal Revenue Code) and is not a person whose
name indicates that it is an “exempt recipient” (as such term is defined in
Section 1.6049-4(c)(ii) of the United States Treasury Regulations) shall
deliver to U.S. Borrower and the Facility Agent on or prior to the Closing Date
(in the case of each Lender listed on the signature pages hereof on the Closing
Date) or on or prior to the date of the Transfer Certificate pursuant to which
it becomes a Lender (in the case of each other Lender), and at such other times
as may be necessary in the determination of U.S. Borrower and the Facility
Agent (each in the reasonable exercise of its discretion) two original copies
of Internal Revenue Service Form W-9 (or successor forms).

(c)                                      Each Lender
required to deliver any forms, certificates or other evidence with respect to
United States federal income tax withholding matters pursuant to this Section
hereby agrees, from time to time after the initial delivery by such Lender of
such forms, certificates or other evidence, whenever a lapse in time or change
in circumstances renders such forms, certificates or other evidence obsolete or
inaccurate in any material respect, that such Lender shall promptly deliver to
the Facility Agent for transmission to U.S. Borrower two new original copies of
Internal Revenue Service Form W-8BEN, W-8ECI, W-8IMY or W-9, or a Certificate
re Non Bank Status and two original copies of Internal Revenue Service Form
W-8BEN or W-8IMY (or any successor form), as the case may be, properly
completed and duly executed by such Lender, and such other documentation
required under the Internal Revenue Code or reasonably requested by U.S. Borrower
to confirm or establish that such Lender is not subject to deduction or
withholding of United States federal income tax with respect to payments to
such Lender under the Finance Documents, or notify the Facility Agent and U.S.
Borrower of its inability to deliver any such forms, certificates or other
evidence.

16.8                     German
Borrowers

(a)                                      The Facility
Agent and each of the Original Lenders undertake to deliver to each German
Borrower as soon as reasonably practicable after the Facilities have been made
available to such German Borrower and subject to compliance by the German
Borrowers with paragraph (c) below, a complete letter in the form of the sample
back-to-back certificate as published by the

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German Federal Ministry of Finance (Bundesfinanzministerium) on 20 October
2005 (IV B7 — S2742a — 43/05) as attached as Schedule 14 (Form of Certificate), or in the form of
any successor sample form as may be required by the German tax authorities (the
“Certificate”).
The Facility Agent (acting on behalf of the Lenders) shall send to the relevant
German Borrower upon request of such German Borrower an updated Certificate as
soon as reasonably practicable (1) upon any amendment to the Facilities or
change in the security or guarantees granted in relation to the Facilities, (2)
if so required by the relevant German Borrower for tax purposes. If the German
tax authorities will not accept a certificate issued by the Facility Agent,
each Lender will issue a certificate individually.

(b)                                     Each German
Borrower may disclose the existence and contents of any Certificate to its
professional advisers, its affiliated companies (verbundene Unternehmen) and to any tax, regulatory or
governmental authority asserting jurisdiction over it.

(c)                                      For purposes of
enabling the Facility Agent to issue a Certificate on behalf of the Lender, the
respective German Borrower will provide the Facility Agent with a list of
guarantees, disposal restrictions and other relevant information as required
pursuant to the sample Certificate, together with any written request for the
issuance of a Certificate.

(d)                                     Each Obligor and
each Lender undertakes to inform the Facility Agent without undue delay if it
becomes aware of any incorrectness or incompleteness of a Certificate given or
to be given from time to time pursuant to paragraph (a) above.

(e)                                      It is the common
understanding of the Parties that:

(i)                        each Certificate is given by
the Facility Agent for the purpose of delivery to the competent tax authorities
of the German Borrowers to assist the German Borrowers in the administration of
their tax affairs and not for any other purpose;

(ii)                     the Facility Agent and the Lenders
are not responsible for examining the German Borrowers’ tax position and that
the Certificates do not guarantee the achievement or amount of a specific
result or conclusion for tax purposes or the suitability of a Certificate to
provide the counterproof as set out in the relevant German tax decrees;

(iii)                  each Certificate will list all
guarantees irrespective of whether they can be harmful under section 8a of the
KStG and will only be a declaration of fact (Wissenserklärung)
and there will be no further obligations of the Facility Agent and/or the
Lenders and no restrictions of their rights under the Finance Documents as a
result of the issuance of any Certificate;

 65
 

 

(iv)                 each Certificate is addressed to and
is solely for the benefit of the German Borrowers in relation to this
Agreement; and

(v)                    no Certificate creates third party
rights of any kind.

(f)                                        It is the
common understanding of the Parties that no Party is providing any legal and/or
tax advice to any other Party with respect to this Agreement, in particular
with respect to the application of section 8a of the KStG and the
interpretation of the relevant German tax decrees, and that it is the
responsibility of each Party, in particular each German Borrower, to consult
its own legal and tax advisers.

(g)                                     To the extent the
German tax authorities require a German Borrower to provide, in addition to the
Certificates, further evidence or information, the Facility Agent and/or the
Lenders shall consider in good faith to what extent it is reasonably practical
for them to support the relevant German Borrower in that regard.

(h)                                     Reasonable costs
and expenses incurred by the Facility Agent or any Lender (unless only the
Facility Agent reviews and issues the Certificate without the involvement of
the Lender) in connection with the provisions of a Certificate will be borne by
the German Borrowers.  Neither the
Facility Agent nor any Lender shall be liable as a result of the delivery of a
Certificate.  Each German Borrower agrees
to indemnify the Facility Agent and each Lender with respect to potential
claims made against the Facility Agent or any Lender with respect to any
Certificate by any third party (other than claims arising by reason of gross
negligence by the Facility Agent or that Lender).  No Obligor will raise any claims against the
Facility Agent or any Lender based on, or in connection with, a (correct/complete
or incorrect/incomplete) Certificate, except in cases where the Facility Agent
or the Lenders are in breach of their undertaking to deliver the Certificate in
accordance with this Clause 16.8, in which event each Lender or the Facility
Agent, as the case may be, shall only be severally (and not jointly) liable for
its own breach (and the Facility Agent shall not be liable for a breach of the
undertaking by the Lenders).

(i)                                         For the
avoidance of doubt:

(i)                        none of the Facility Agent nor
any Lender shall be obliged to disclose to any other person any confidential
information regarding its business or any other information relating to its tax
affairs or tax computations (including, without limitation, its tax returns or
its calculations) as a result of the operation of this clause;

(ii)                     none of the Facility Agent nor any
Lender shall be obliged to deliver any information or make any statements
pursuant to this clause if by doing so it would contravene the terms of any
applicable law or any notice, direction or requirement of any governmental or
regulatory authority (whether or not having the force of law); and

 66
 

 

(iii)                  each German Borrower may disclose the
existence and contents of a Certificate to its professional advisers, its
affiliates, as required by applicable law or regulation and to any tax,
regulatory or other governmental authority asserting jurisdiction over it.

(j)                                         Each Obligor
acknowledges that the Facility Agent may only deliver a Certificate if and to
the extent any Obligor has released the Facility Agent from its general obligation
to maintain confidentiality and herewith releases the Facility Agent and each
Lender from the banking confidentiality (Bankgeheimnis)
and any other confidentiality obligation for purposes of the issuance and
delivery of the Certificates solely with respect to such information that is
required to be included in the Certificate, and solely vis-à-vis the other Obligors, the tax
authorities and the other Finance Parties. 
If the Facility Agent has not been released from such banking
confidentiality and other confidentiality obligations by any person providing a
guarantee to secure any liabilities of the relevant German Borrower, the
Certificates will only state that further guarantees have been granted.

17.                           INCREASED
COSTS

17.1                     Increased
costs

(a)                                      Subject to Clause
17.3 (Exceptions) the Company
shall, within three Business Days of a demand by the Facility Agent, pay for
the account of a Finance Party the amount of any Increased Costs incurred by
that Finance Party or any of its Affiliates as a result of (i) the introduction
of or any change in (or in the interpretation, administration or application
of) any law or regulation or (ii) compliance with any law or regulation made
after the date of this Agreement.

(b)                                     In this Agreement “Increased Costs” means:

(i)                        a reduction in the rate of
return from a Facility or on a Finance Party’s (or its Affiliate’s) overall
capital;

(ii)                     an additional or increased cost;
or

(iii)                  a reduction of any amount due and
payable under any Finance Document,

which is incurred or suffered
by a Finance Party or any of its Affiliates to the extent that it is
attributable to that Finance Party having entered into its Commitments or an
Ancillary Commitment or funding or performing its obligations under any Finance
Document or Bank Guarantee.

17.2                     Increased
cost claims

(a)                                      A Finance Party
intending to make a claim pursuant to Clause 17.1 (Increased costs) shall notify the Facility Agent of the
event giving rise to the claim, following which the Facility Agent shall
promptly notify the Company.

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(b)                                     Each Finance Party
shall, as soon as practicable after a demand by the Facility Agent, provide a
certificate confirming the amount of its Increased Costs together with
reasonable details of the basis of calculation.

17.3                     Exceptions

(a)                                      Clause 17.1 (Increased costs) does not apply to the
extent any Increased Cost is:

(i)                        attributable to a Tax Deduction
required by law to be made by an Obligor; and

(ii)                     compensated for by Clause 16.3 (Tax indemnity) (or would have been
compensated for under Clause 16.3 (Tax
indemnity) but was not so compensated solely because any of the
exclusions in paragraph (b) of Clause 16.3 (Tax
indemnity) applied); or

(iii)                  compensated for by the payment of the
Mandatory Cost; or

(iv)                 attributable to the wilful breach by
the relevant Finance Party or its Affiliates of any law or regulation.

(b)                                     In this Clause
17.3, a reference to a “Tax Deduction”
has the same meaning given to the term in Clause 16.1 (Definitions).

18.                           OTHER INDEMNITIES

18.1                     Currency
indemnity

(a)                                      If any sum due
from an Obligor under the Finance Documents (a “Sum”),
or any order, judgment or award given or made in relation to a Sum, has to be
converted from the currency (the “First Currency”)
in which that Sum is payable into another currency (the “Second Currency”)
for the purpose of:

(i)                        making or filing a claim or
proof against that Obligor; or

(ii)                     obtaining or enforcing an order,
judgment or award in relation to any litigation or arbitration proceedings,

that Obligor shall as an
independent obligation, within three Business Days of demand, indemnify each
Finance Party and each Mandated Lead Arranger to whom that Sum is due against
any cost, loss or liability arising out of or as a result of the conversion
including any discrepancy between (A) the rate of exchange used to convert that
Sum from the First Currency into the Second Currency and (B) the rate or rates
of exchange available to that person at the time of its receipt of that Sum.

(b)                                     Each Obligor
waives any right it may have in any jurisdiction to pay any amount under the
Finance Documents in a currency or currency unit other than that in which it is
expressed to be payable.

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18.2                     Other
indemnities

The Company shall (or
shall procure that an Obligor will), within three Business Days of demand,
indemnify each Finance Party and each Mandated Lead Arranger against any cost,
loss or liability incurred by that Finance Party or Mandated Lead Arranger as a
result of:

(a)                                      the occurrence of
any Event of Default;

(b)                                     a failure by an
Obligor to pay any amount due under a Finance Document on its due date,
including without limitation, any cost, loss or liability arising as a result
of Clause 31 (Sharing among the Finance
Parties);

(c)                                      funding, or
making arrangements to fund, its participation in a Utilisation requested by a
Borrower in a Utilisation Request but not made by reason of the operation of
any one or more of the provisions of this Agreement (other than by reason of
default or negligence by that Finance Party alone);

(d)                                     issuing or making
arrangements to issue a Bank Guarantee requested by a Borrower in a Utilisation
Request but not issued by reason of the operation of any one or more of the
provisions of this Agreement; or

(e)                                      a Utilisation (or
part of a Utilisation) not being prepaid in accordance with a notice of
prepayment given by a Borrower.

18.3                     Indemnity to
the Facility Agent

The Company shall (or
shall procure that an Obligor will) promptly indemnify the Facility Agent
against any cost, loss or liability incurred by the Facility Agent (acting
reasonably) as a result of:

(a)                                      investigating any
event which it reasonably believes is a Default;

(b)                                     entering into or
performing any foreign exchange contract for the purposes of paragraph (b) of
Clause 32.9 (Change of Currency);
or

(c)                                      acting or relying
on any notice, request or instruction which it reasonably believes to be
genuine, correct and appropriately authorised.

19.                           MITIGATION
BY THE LENDERS

19.1                     Mitigation

(a)                                      Each Finance
Party shall, in consultation with the Company, take all reasonable steps to
mitigate any circumstances which arise and which would result in any amount
becoming payable under or pursuant to, or cancelled pursuant to, any of Clause
11.1 (Illegality of a Lender),
Clause 16 (Tax Gross up and Indemnities)
or Clause 17 (Increased Costs) or
paragraph 3 of Schedule 4 (Mandatory Cost
Formulae) including (but not limited to) transferring its rights and
obligations under the Finance Documents to another Affiliate or Facility
Office.

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(b)                                     Paragraph (a)
above does not in any way limit the obligations of any Obligor under the
Finance Documents.

19.2                     Limitation of
liability

(a)                                      The Company shall
(or shall procure that an Obligor will) indemnify each Finance Party for all
costs and expenses reasonably incurred by that Finance Party as a result of steps
taken by it under Clause 19.1 (Mitigation).

(b)                                     A Finance Party is
not obliged to take any steps under Clause 19.1 (Mitigation) if, in the opinion of that Finance Party (acting
reasonably), to do so might be prejudicial to it.

20.                           COSTS
AND EXPENSES

20.1                     Transaction
expenses

The Company shall within
5 Business Days of demand, but not prior to the Closing Date, pay (or shall
procure that an Obligor will pay) the Facility Agent and the Mandated Lead
Arrangers the amount of all costs and expenses (including legal fees)
reasonably incurred by any of them (but subject to any caps agreed) in
connection with the negotiation, preparation, printing, execution, syndication
and perfection of:

(a)                                      this Agreement
and any other documents referred to in this Agreement; and

(b)                                     any other Finance
Documents executed after the date of this Agreement.

20.2                     Amendment
costs

If (a) an Obligor
requests an amendment, waiver or consent (for the avoidance of doubt including
any amendment to effect an Incremental Loan) or (b) an amendment is required
pursuant to Clause 32.9 (Change of currency),
the Company shall, within five Business Days of demand, reimburse (or procure
reimbursement of) each of the Facility Agent for the amount of all costs and
expenses (including legal fees) reasonably incurred by the Facility Agent in
responding to, evaluating, negotiating or complying with that request or
requirement.

20.3                     Enforcement
and preservation costs

The Company shall, within
three Business Days of demand, pay (or procure payment) to each Finance Party
and each Mandated Lead Arranger the amount of all costs and expenses (including
legal fees) reasonably incurred by that Finance Party or Mandated Lead Arranger
in connection with the enforcement of or the preservation of any rights, powers
and remedies under, any Finance Document.

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SECTION
7

GUARANTEE

21.                           GUARANTEE
AND INDEMNITY

21.1                     Guarantee and
indemnity

Each Guarantor
irrevocably and unconditionally jointly and severally:

(a)                                      guarantees to
each Finance Party punctual performance by each Borrower (other than itself) of
all that Borrower’s obligations under the Finance Documents;

(b)                                     undertakes with
each Finance Party that whenever a Borrower does not pay any amount when due
under or in connection with any Finance Document, that Guarantor shall
immediately on demand pay that amount as if it was the principal obligor; and

(c)                                      indemnifies each
Finance Party immediately on demand against any cost, loss or liability
suffered by that Finance Party if any obligation guaranteed by it is or becomes
unenforceable, invalid or illegal.  The
amount of the cost, loss or liability shall be equal to the amount which that
Finance Party would otherwise have been entitled to recover,

provided
that no U.S. Group Company shall be required to grant a
guarantee in respect of any part of the Facilities borrowed by members of the
Group which are not U.S. Group Companies and no Group company incorporated
outside of the United States of America shall be required to grant a guarantee
in respect of any part of the Facilities borrowed by U.S. Group Companies.

21.2                     Continuing
Guarantee

This guarantee is a
continuing guarantee and will extend to the ultimate balance of sums payable by
any Obligor under the Finance Documents, regardless of any intermediate payment
or discharge in whole or in part.

21.3                     Reinstatement

If any payment by an
Obligor or any discharge given by a Finance Party (whether in respect of the
obligations of any Obligor or any security for those obligations or otherwise)
is avoided or reduced as a result of insolvency or any similar event:

(a)                                      the liability of
each Obligor shall continue as if the payment, discharge, avoidance or
reduction had not occurred; and

(b)                                     each Finance Party
shall be entitled to recover the value or amount of that security or payment from
the Obligor, as if the payment, discharge, avoidance or reduction had not
occurred.

21.4                     Waiver of
defences

The obligations of each
Guarantor under this Clause 21 will not be affected by any act, omission,
matter or thing which, but for this Clause 21, would reduce, release or

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prejudice any of its
obligations under this Clause 21 (without limitation and whether or not known
to it or any Finance Party) including:

(a)                                      any time, waiver
or consent granted to, or composition with, any Obligor or other person;

(b)                                     the release of any
other Obligor or any other person under the terms of any composition or
arrangement with any creditor of any member of the Group;

(c)                                      the taking,
variation, compromise, exchange, renewal or release of, or refusal or neglect
to perfect, take up or enforce, any rights against, or security over assets of,
any Obligor or other person or any non presentation or non observance of any
formality or other requirement in respect of any instrument or any failure to
realise the full value of any security;

(d)                                     any incapacity or
lack of power, authority or legal personality of or dissolution or change in
the members or status of an Obligor or any other person;

(e)                                      any amendment
(however fundamental) or replacement of a Finance Document or any other
document or security;

(f)                                        any
unenforceability, illegality or invalidity of any obligation of any person
under any Finance Document or any other document or security; or

(g)                                     any insolvency or
similar proceedings.

21.5                     Immediate
recourse

Each Guarantor waives any
right it may have of first requiring any Finance Party (or any agent on its
behalf) to proceed against or enforce any other rights or security or claim
payment from any person before claiming from that Guarantor under this Clause
21.  This waiver applies irrespective of
any law or any provision of a Finance Document to the contrary.

21.6                     Appropriations

Until all amounts which
may be or become payable by the Obligors under or in connection with the
Finance Documents have been irrevocably paid in full, each Finance Party may,
to the extent to do so is reasonable in the circumstances:

(a)                                      refrain from
applying or enforcing any other monies, security or rights held or received by
that Finance Party (or any trustee or agent on its behalf) in respect of those
amounts, or apply and enforce the same in such manner and order as it sees fit
(whether against those amounts or otherwise) and no Guarantor shall be entitled
to the benefit of the same; and

(b)                                     hold in an
interest bearing suspense account any monies received from any Guarantor or on
account of any Guarantor’s liability under this Clause 21.

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21.7                     Deferral of
Guarantor’s rights

Until all amounts which
may be or become payable by the Obligors under or in connection with the
Finance Documents have been irrevocably paid in full and unless the Facility
Agent otherwise directs, no Guarantor will exercise any rights which it may
have by reason of performance by it of its obligations under the Finance
Documents:

(a)                                      to be indemnified
by an Obligor;

(b)                                     to claim any
contribution from any other guarantor of any Obligor’s obligations under the
Finance Documents; and/or

(c)                                      to take the
benefit (in whole or in part and whether by way of subrogation or otherwise) of
any rights of the Finance Parties under the Finance Documents or of any other
guarantee or security taken pursuant to, or in connection with, the Finance
Documents by any Finance Party.

21.8                     Additional
security

This guarantee is in
addition to and is not in any way prejudiced by any other security now or
subsequently held by any Finance Party.

21.9                     Limitation on
Payment Obligations by German Guarantors and limitation regarding LTIBRs

(a)                                      The Finance
Parties’ agree, other than in accordance with the procedure set out in this
Clause 21.9, not to enforce any payment obligation under or in connection with
the Finance Documents (other than a payment obligation of a German Obligor (as
defined below) or of any direct or indirect subsidiary of such German Obligor
under the Term Facilities or the Revolving Facility made available to such
German Obligor or such subsidiary) against an Obligor organised as a limited
liability company (GmbH) in
Germany (a “German Obligor”), to the extent
that the enforcement would otherwise lead to the situation that the German
Obligor did not have sufficient net assets (Nettovermögen),
calculated in accordance with the jurisprudence from time to time of the German
Federal Supreme Count (Bundesgerichtshof)
or absent such jurisprudence, the jurisprudence of the Higher Regional Court (Oberlandesgericht) or Regional Courts (Landgericht) in the district of the
relevant German Obligor relating to protection of liable capital under sections
30 and 31 of the German Limited Liability Companies Act (GmbH-Gesetz)) to maintain its stated share
capital (Stammkapital) or
increased an existing shortage of its stated share capital) provided that for the purposes of the calculation of the
enforceable amount, if any, the following balance sheet items shall be adjusted
as follows:

(i)                        the amount of any increase of
stated share capital (Stammkapital)
of the German Obligor that has been effected after the date hereof shall be
deducted from the stated share capital unless such increase is (x) required by
law or envisaged in the Structure Memorandum, or (y) matched by a corresponding
increase in the net assets of the relevant

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Obligor, or (z) made with the consent of the Facility Agent (such
consent not to be unreasonably withheld). 
For the avoidance of doubt, increasing the capital reserves (Rücklagen) as referred to in Section 266
para. 3, items II. and III. of the German Commercial Code (Handelsgesetzbuch - HGB) of any German
Guarantor shall not be restricted (and shall not require any adjustments to the
stated share capital) by virtue of this paragraph; and/or

(ii)                     any amount of mandatory reserves (Rücklagen) resulting from a decrease of
registered share capital (Kapitalherabsetzung)
and any amount of public subsidies (Subventionen
und andere öffentliche Beihilfen) received after the date hereof
which are subject to an unfulfilled commitment as to their use shall be added
to the registered share capital; and/or

(iii)                  loans provided after the date hereof
to the German Obligor, insofar such loans qualify as equity under the
applicable accounting principles and which do not have to be shown as
liabilities on the German Obligor’s balance sheet, shall be disregarded; and/or

(iv)                 to the extent the enforcement of the
guarantee would deprive the German Obligor of the ability to fulfil its
obligations to third parties (incurred, whether on a contingent or
non-contingent basis, at the time of enforcement or to continue its business,
then, for the determination of net assets, the assets of the German Obligor
shall be calculated at the lesser of their book value (Buchwert) and their realisation value
assuming a negative prognosis for the business continuance (Liquidationswert bei negativer Fortführungsprognose);
and/or

(v)                    loans and other contractual
liabilities incurred by the German Obligor in violation of the provisions of
any of the Finance Documents shall be disregarded to the extent such violation
can be attributed to wilful misconduct of the managing director (Geschäftsführer) of the German Obligor.

(b)                                     The limitations
set out in paragraph (a) of this Clause 21.9 only apply if and to the extent
that:

(i)                        within twenty (20) Business
Days following the demand against a German Obligor by the Facility Agent
(acting on behalf of the Finance Parties) (the “Envisaged
Enforcement Date”), the managing director(s) on behalf of such
German Obligor has confirmed in writing to the Facility Agent (x) to what
extent the payment obligation relates to a primary liability which is an
up-stream or cross-stream liability as described in paragraph (a), and (y)
which amount of such up-stream and/or cross-stream liability cannot be enforced
as it would exceed the net assets of the German Obligor, and such confirmation
is supported by

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conclusive evidence satisfactory to the Facility Agent, including in
particular, pro forma interim
financial statements as of the Envisaged Enforcement Date (the “Management Determination”), and the Facility Agent has not
contested the Management Determination; or

(ii)                     within 40 business days from the
date the Facility Agent (acting on behalf of the Finance Parties) has contested
the Management Determination, the Facility Agent receives a determination by
auditors of international standard and reputation (the “Auditor’s
Determination”) appointed by the German Obligor, of the amount of
the net assets on the envisaged enforcement date.

(c)                                      If the Facility
Agent disagrees with the Auditor’s Determination, it shall be entitled to
further pursue their claims and/or rights (if any) under the dispute solutions
agreed upon and, in particular, to contest the Auditor’s Determination in
court, and the German Obligor shall be entitled to prove that this amount is
necessary for maintaining its stated share capital (calculated as of the date
the demand for payment and/or enforcement was made).

(d)                                     The German Obligor
shall use reasonable efforts to realize any and all of its assets that are
shown in the balance sheet with a book value (Buchwert) that it is
significantly lower than the market value of the assets, or are not recorded at
all in a situation where the German Obligor does not have sufficient Net Assets
to maintain its registered share capital, provided that
the relevant assets are in the reasonable opinion of the German Obligor not
required for the business of the German Obligor (nicht betriebsnotwendiges Vermögen).

(e)                                      The Finance
Parties’ right to claim and/or enforce a payment obligation (other than a
payment obligation of a German Obligor or of any direct or indirect subsidiary
of a German Obligor under the Term Facilities or the Revolving Facility made
available to such German Obligor or Subsidiary) shall be excluded at all, or
exist only to a limited amount, if the German Obligor delivers within the
Envisaged Enforcement Date a legal opinion issued by a law firm of
international standard and reputation with German qualified lawyers (Rechtsanwälte) which:

(i)                        comes to the conclusion that
the German Obligor complying with its obligations under any of the Finance
Documents has exposed and/or would expose (based on legal literature which is
(in the view of the lawyer giving the opinion) widely accepted among German
lawyers, and/or court decisions issued after the date of this agreement in
relation to the relevant issues which present the risk of liability as
materially greater than the risk of liability as presented by legal literature
and/or court decisions current on the date of this agreement) the managing
directors of the German Obligor (or its shareholder’s or an affiliated company’s
managing directors, officers or board members), or an

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affiliated company (verbundenes
Unternehmen) to a significant risk of civil or criminal liability;
and

(ii)                     specifies the maximum amount to
which the payment and/or enforcement of any claims under or in connection with
the Finance Documents shall be limited to prevent the circumstances referred to
in the sub-paragraph immediately above from arising.

(f)                                        If the Facility
Agent (acting on behalf of the Lenders) disagrees with the conclusions of the
abovementioned legal opinion, the Facility Agent shall be entitled to further
pursue its claims and/or rights (if any) under the dispute solutions agreed
upon and, in particular, to contest the conclusions of the legal opinion (and
therefore the limitations on the guarantees) in court, and the German Obligor
shall be entitled to prove what limitations under the relevant guarantees are
necessary to prevent the managing directors of the German Obligor (or its
shareholder’s or an affiliated company’s managing directors, officers or board
members) or an affiliated company to become subject to civil or criminal
liability, and the conclusions of such dispute resolution processes shall
(subject to any rights of appeal) be effective between the parties (i.e., the
limitations on the relevant guarantees shall be adjusted to reflect the
conclusions of such dispute resolution processes).

(g)                                     In the case of a
Guarantor organised in the form of a limited partnership in which the general
partner is a GmbH (GmbH & Co. KG), the provisions set out above shall apply
mutatis mutandis to the Guarantor’s
general partner (Komplementär).

(h)                                     If and to the
extent that:

(i)                        a guarantee granted under the
Facility Agreement secures any Loans, (i) which are made to a corporation, or
(ii) which are deemed to be made to a corporation according to Section 8a
paragraph 5 sentence 2 German Corporation Income Tax Act (Körperschaftsteuergesetz), and which
corporation is subject to German corporation income tax, (such Loans being
defined as a “German Loans” and such corporation
being defined as “German Borrower”);
and

(ii)                     the relevant Guarantor granting
such guarantee either (i) qualifies as a major shareholder (wesentlicher Anteilseigner) within the
meaning of Section 8a of the German Income Corporation Tax Act (Körperschaftssteuergesetz) of such German
Borrower or (ii) as an affiliated party within the meaning of Section 1
paragraph 2 of the German Foreign Trade Tax Act (Aussensteuergesetz) of such a major shareholder of such
German Borrower,

such guarantee (or any
enforceable judgment based thereon) shall not be enforced against assets of the
relevant Guarantor which qualify as LTIBR(s) if and to the extent such LTIBR(s)
are (i) encumbered in favour of any of the

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Finance Parties pursuant
to a lien arising under the general business terms (AGB-Pfandrecht) of such Finance Party, (ii) the subject of a
disposal restriction (Verfügungsbeschränkung)
or (iii) subject to enforcement pursuant to a submission to immediate
foreclosure in the entire property (Unterwerfung
unter die sofortige Zwangsvollstreckung in das gesamte Vermögen) of
the relevant Guarantor;

21.10               Limitation on a
Guarantee by United States Borrowers

Each Guarantor, the
Facility Agent and each other Finance Party, hereby confirms that it is the
intention of all such Persons that this Guarantee and the Obligations of each
Guarantor hereunder do not constitute a fraudulent transfer or conveyance for
purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar United States federal or state law to
the extent applicable to this Guarantee and the Obligations of each Guarantor
hereunder.  To effectuate the foregoing
intention, the Facility Agent, the other Finance Parties and the U.S.
Guarantors hereby irrevocably agree that the Obligations of each U.S. Guarantor
under this Guarantee at any time shall be limited to the maximum amount as will
result in the Obligations of such U.S. Guarantor under this Guarantee not
constituting a fraudulent transfer or conveyance under any such laws.  For purposes of this paragraph, “Bankruptcy
Law” means Title 11, U.S. Code, or any similar United States federal or state
law for the relief of debtors.

21.11               Other Guarantee
Limitations

The obligations of each
Guarantor whose Relevant Jurisdiction is not Germany shall, in accordance with
the Guarantee Principles, be subject to the guarantee limitation (if any)
specified in the Accession Letter in relation to that Guarantor.

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SECTION
8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

22.                           REPRESENTATIONS

The Company (on behalf of
itself and each relevant member of the Group) and each Obligor on behalf of
itself makes the following representations and warranties to each Finance Party
at the times specified in Clause 22.25 (Times
on which representations are made):

22.1                     Status

(a)                                      It and each of
its Subsidiaries is a corporation or limited liability company or partnership,
duly incorporated or organised and validly existing under the law of its
jurisdiction of incorporation or organisation.

(b)                                     It and each of its
Subsidiaries has the power under its constitutive documents to own its assets
and carry on its business as it is being conducted.

22.2                     Binding
obligations

Subject to the Legal
Reservations, the obligations expressed to be assumed by it in each Finance
Document are legal, valid, binding and enforceable obligations.

22.3                     Non conflict
with other obligations

The entry into and
performance by it of, and the transactions contemplated by, the Finance
Documents do not and will not conflict with:

(a)                                      any law or
regulation applicable to it;

(b)                                     the constitutional
documents of any member of the Group; or

(c)                                      any agreement or
instrument binding upon it or any member of the Group or any of its or any
member of the Group’s assets,

to the extent that such
conflict is likely to have a Material Adverse Effect.

22.4                     Power and
authority

It has the power to enter
into, perform and deliver, and has taken all necessary corporate action to
authorise its entry into, performance and delivery of, the Finance Documents to
which it is or will be a party and the transactions contemplated by those
Finance Documents.

22.5                     Validity and
admissibility in evidence

Subject to the Legal
Reservations, all Authorisations required:

(a)                                      to enable it
lawfully to enter into, exercise its rights and comply with its obligations in
the Finance Documents to which it is or will be a party; and

(b)                                     to make the
Finance Documents to which it is or will be a party admissible in evidence in
its Relevant Jurisdictions,

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have been obtained or
effected and are in full force and effect where failure to do so is likely to
have a Material Adverse Effect.

22.6                     Governing law
and enforcement

(a)                                      Subject to the
Legal Reservations, the choice of English law as the governing law of the
Finance Documents will be recognised and enforced in its Relevant Jurisdiction.

(b)                                     Subject to the
Legal Reservations, any judgment obtained in England in relation to a Finance
Document will be recognised and enforced in its Relevant Jurisdiction

22.7                     Insolvency

No:

(a)                                      corporate action,
legal proceeding or other procedure or step described in paragraph (a) of
Clause 26.7 (Insolvency proceedings);
or

(b)                                     creditors process
described in Clause 26.8 (Creditors’ process),

has been taken or, to the
knowledge of the Company, threatened in relation to any Material Company and
none of the circumstances described in Clause 26.6 (Insolvency) applies to any of them.

22.8                     No filing or
stamp taxes

Under the laws of the
Relevant Jurisdictions and subject to the Legal Reservations, it is not
necessary that the Finance Documents be filed, recorded or enrolled with any
court or other authority in that jurisdiction or that any stamp, registration,
notarial or similar Taxes or fees be paid on or in relation to the Finance
Documents or the transactions contemplated by the Finance Documents, except any
filing, recording or enrolling or any tax or fee payable which is referred to
in any legal opinion delivered to the Facility Agent under Clause 4.1 (Initial Conditions Precedent) or Clause 28
(Changes to the Obligors) and
which will be made or paid promptly after the date of execution of the relevant
Finance Document.

22.9                     No default

(a)                                      No Event of
Default is continuing or is likely to result from the making of any
Utilisation.

(b)                                     No other event or
circumstance is outstanding which constitutes a default under any other
agreement or instrument which is binding on it or any of its Subsidiaries or to
which its (or its Subsidiaries’) assets are subject which could be expected to
have a Material Adverse Effect.

22.10               No misleading
information

(a)                                      Any factual
information contained in the Information Memorandum or Business Plan was true
and accurate in all material respects as at the date of the relevant report or
document containing the information.

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(b)                                     Any financial
projections or forecasts contained in the Information Memorandum or Business
Plan have been prepared on the basis of recent historical information and on
the basis of assumptions believed to be reasonable.

(c)                                      The expressions
of opinion or intention provided by or on behalf of an Obligor for the purposes
of the Information Memorandum or Business Plan were arrived at after careful
consideration and were fair and based on reasonable grounds.

(d)                                     No event or
circumstance has occurred or arisen and no information has been omitted from
the Information Memorandum or Business Plan and no information has been given
or withheld that results in the information, opinions, intentions, forecasts or
projections contained in the Information Memorandum or the Business Plan being
untrue or misleading or other than fair and reasonable in any material respect.

(e)                                      All other written
information which is required to be provided under any of the Finance Documents
by any member of the Group (including its advisers) was true, complete and
accurate in all material respects as at the date it was provided and is not
misleading in any material respect.

The representations and
warranties made by any Obligor in this Clause 22.10 are made only in so far as
it is aware after making reasonable enquiries.

22.11               Financial
statements

(a)                                      Its Original
Financial Statements were (save as disclosed therein) prepared in accordance
with the Accounting Principles consistently applied.

(b)                                     Its Original
Financial Statements give a true and fair view of its financial condition and
operations during the relevant financial year.

(c)                                      Except to the
extent superseded by subsequently delivered financial statements, each set of
financial statements delivered pursuant to Clause 23.1 (Financial statements) were prepared in
accordance with the Accounting Principles and gives (in conjunction with the
notes thereto) a true and fair view of (in the case of audited financial
statements or, in the case of any management accounts, are reasonably believed
to fairly represent) or fairly represents (in the case of unaudited financial
statements) its financial condition and operations as at the date at which
those financial statements were drawn up.

(d)                                     As far as it is
aware after making reasonable enquiries, no member of the Group, as at the date
as of which the Original Financial Statements and any financial statements
delivered hereunder pursuant to Clause 23.1 (Financial
statements) were prepared, failed to disclose or reserve against any
liabilities (contingent or otherwise and including in relation to pensions or
employee benefit schemes) nor any unrealised anticipated losses arising from

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commitments entered into by it which, in
accordance with Accounting Principles, it should have disclosed or reserved
against and which is likely to have a Material Adverse Effect.

22.12               No proceedings
pending or threatened

No litigation,
arbitration or administrative proceedings or investigations of or before any
court, arbitral body or agency which, if adversely determined, would be likely
to have a Material Adverse Effect have been started or threatened against it or
any of its Subsidiaries nor, to the best of its knowledge and belief, are there
any circumstances likely to give rise to any such litigation, arbitration or
administrative proceedings or investigations which would be likely to have a
Material Adverse Effect.

22.13               Environmental and
other laws

(a)                                      Each member of
the Group is in compliance with Clause 25.3 (Environmental
compliance) and, to the best of its knowledge and belief, no
circumstances have occurred which would prevent that performance or
observation.

(b)                                     No Environmental
Claim has been commenced or (to the best of its knowledge and belief) is
threatened against any member of the Group where that claim is likely, if
determined against that member of the Group, to have a Material Adverse Effect.

(c)                                      No member of the
Group is in breach of any other law or regulation in a manner or to an extent
which is likely to have a Material Adverse Effect.

22.14               Taxation

(a)                                      It is not (and
none of its Subsidiaries is):

(i)                        materially overdue in the
filing of any Tax returns where such failure would be likely to have a Material
Adverse Effect; or

(ii)                     overdue in the payment of any
material amount in respect of Tax save to the extent that (i) payment is being
contested in good faith, or (ii) it has maintained adequate reserves for those
Taxes and (iii) either payment can be lawfully withheld or non payment would
not have a Material Adverse Effect.

(b)                                     No claims are
being or (based on facts at the time of signing this Agreement) are likely to
be asserted against it (or any of its Subsidiaries) with respect to Taxes
except for assessments in relation to the ordinary course of its business or
claims being contested in good faith and in respect of which adequate provision
has been made in its accounts and payment can be lawfully withheld or non
payment would not be likely to have a Material Adverse Effect.

22.15               Security and
Financial Indebtedness

(a)                                      No Security
exists over all or any of the present or future assets of any member of the
Group other than any Security permitted under Clause 25.11 (Negative pledge).

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(b)                                     No member of the
Group has any actual or contingent Financial Indebtedness outstanding other
than as permitted by this Agreement.

22.16               Good Title Assets

It and each of it
Subsidiaries has a good title to, or valid leases or licences of, and all
appropriate Authorisations to use, the assets necessary to carry on its
business as presently conducted save where failure to do so would likely have a
Material Adverse Effect.

22.17               Intellectual
Property

It is not aware of any
adverse circumstances relating to the validity, subsistence or use of any of
its or its Subsidiaries’ Material Intellectual Property which would likely have
a Material Adverse Effect.

22.18               Group structure

(a)                                      The Structure
Memorandum (containing the group structure chart) to be delivered to the
Facility Agent shall be, when so delivered, true, complete and accurate in all
material respects.

(b)                                     All necessary
intra Group loans, transfers, share exchanges and other steps resulting in the
final Group structure set out in the Structure Memorandum have been or will be
taken in compliance with all relevant laws and regulations and all requirements
or relevant regulatory authorities.

22.19               Insurance

As of the Closing Date,
each member of the Group maintains insurance as described in Clause 25.18 (Insurance).

22.20               ERISA

Neither any Obligor nor
any ERISA Affiliate has established, maintains, contributes or has liability
with respect to any employee benefit plan that is covered by Title IV of ERISA
which would be likely to have a Material Adverse Effect.

22.21               Margin Stock

(a)                                      No Borrower is
engaged nor will it engage principally, or as one of its important activities,
in the business of owning or extending credit for the purpose of “buying” or “carrying” any
Margin Stock.

(b)                                     None of the
proceeds of any Loan or other extensions of credit under this Agreement will be
used, directly or indirectly, for the purpose of buying or carrying any Margin
Stock, for the purpose of reducing or retiring any indebtedness that was
originally incurred to buy or carry any Margin Stock or for any other purpose
which might cause all or any Loans or other extensions of credit under this
Agreement to be considered a “purpose credit”
within the meaning of Regulation U or Regulation X.

(c)                                      No Borrower or
any agent acting on its behalf has taken or will take any action which would
cause the Finance Documents to violate any regulation of the Board of Governors
of the Federal Reserve System of the United States.

 82
 

 

22.22               Pensions

Other than as described
in the Original Financial Statements of the Group, no member of the Group
(other than any U.S. Group Company, for which pension matters are addressed in
Section 22.20) has any liability in relation to pensions or employee benefit
schemes which would be likely to have a Material Adverse Effect.

22.23               Investment
Companies

No Obligor is an “investment company” as such term is defined
in the Investment Company Act of 1940 of the United States (the “1940 Act”) or otherwise subject to
regulation under the 1940 Act or subject to regulation under any United States
federal or state statute or regulation restricting or limiting its ability to
incur indebtedness other than statutes and regulations of general application.

22.24               Anti-Terrorism Laws

(a)                                      To the best of
the Obligors’ knowledge, no Obligor nor any Affiliate thereof: (i) is, or is
controlled by, a Restricted Party in contravention of an Anti-Terrorism Law;
(ii) has received funds or other property from a Restricted Party; or (iii) is
in breach of or is the subject of any action or investigation under any
Anti-Terrorism Law.

(b)                                     Each Obligor has
taken reasonable measures to ensure compliance with the Anti-Terrorism Laws and
no Obligor knows of any failure to take reasonable measures to ensure
compliance with an Anti-Terrorism Law by any of its Affiliates.

22.25               Times on which
representations are made

(a)                                      All the
representations and warranties in this Clause 22 are made to each Finance Party
on the date of this Agreement and on the Closing Date except for the
representations and warranties set out in (i) Clause 22.10 (No misleading information) relating to the
Information Memorandum which are to be made by the Company on the date that the
Information Memorandum is approved by it and on the Syndication Date, and (ii)
paragraphs (c) and (d) of Clause 22.11 (Financial
statements) which are to be made on the date of this Agreement, the
Closing Date and the date of delivery of each set of financial statements (in
relation to the financial statements then delivered).

(b)                                     The Repeating
Representations are repeated by the Company and each Obligor to each Finance
Party on the date of each Utilisation Request and on the first day of each
Interest Period provided that the Repeated Representations
shall not include those in respect of which the corresponding Events of Default
are not applicable pursuant to Clause 26.19 (Certain
Funds Period).

(c)                                      All the Repeating
Representations are made by each Additional Obligor in relation to itself to
each Finance Party on the day on which it becomes an Additional Obligor.

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(d)                                     Each
representation or warranty to be made after the date of this Agreement shall be
made by reference to the facts and circumstances existing at the date the
representation or warranty is made unless expressly stated to be made as at
another date in which case the relevant representation and warranty shall be
made by reference to the facts and circumstances existing as at that date.

23.                           INFORMATION
UNDERTAKINGS

The undertakings in this
Clause 23 remain in force from the date of this Agreement for so long as any
amount is outstanding under the Finance Documents or any Commitment is in
force.

In this Clause 23:

“Annual Financial Statement” means a
financial statement for a financial year delivered pursuant to paragraph (a) of
Clause 23.1 (Financial statements).

“Financial Quarter” has the meaning given to
that term in Clause 24.1 (Financial
definitions).

23.1                     Financial
statements

The Company shall supply
to the Facility Agent:

(a)                                      as soon as they
are available, but in any event within 120 days after the end of each of its
financial years (i) the audited consolidated financial statements for the Group
for that financial year; and (ii) the balance sheet and profit and loss account
report of each Obligor for that financial year, audited, if that Obligor is
required by law to prepare or otherwise prepares audited financial statements.

(b)                                     as soon as they
are available, but in any event within 60 days after the end of each Financial
Quarter, the un-audited consolidated financial statements for the Group
prepared in accordance with the Accounting Principles for that Financial
Quarter (“Quarterly Financial Statements”),
including in each case profit and loss accounts, balance sheet and cash flow
statements and a management commentary thereon from the Chief Financial
Officer.

23.2                     Compliance
Certificate

(a)                                      The Company shall
supply a Compliance Certificate to the Facility Agent with each set of its
audited consolidated Annual Financial Statements and each set of its un-audited
consolidated Semi-Annual Financial Statements.

(b)                                     Each Compliance
Certificate shall:

(i)                        set out (in reasonable detail)
computations as to compliance with Clause 24 (Financial
Covenants) and the Margin computations set out in the definition “Margin” and Clause 12.3 (Margin
Ratchet); and

 84
 

 

(ii)                     confirm that no Default has
occurred and is continuing or, if a Default has occurred, what Default has
occurred and the steps being taken to remedy that Default.

(c)                                      Each Compliance
Certificate shall be signed by a director of the Company and, when required to
be delivered with the consolidated Annual Financial Statements of the Company,
shall be accompanied by confirmation thereof (together with a customary
engagement letter providing for reliance by the Lenders) from the Company’s
auditors in form satisfactory to the Facility Agent (acting reasonably).

23.3                     Requirements
as to financial statements

(a)                                      Each set of
financial statements delivered pursuant to Clause 23.1 (Financial statements):

(i)                        shall be certified by a
director of the relevant company as giving a true and fair view (in the case of
Annual Financial Statements) or fairly representing (in other cases) its, or as
the case may be, its consolidated financial condition and operations as at the
date as at which those financial statements were drawn up and shall be prepared
using the Accounting Principles, accounting practices and financial reference
periods consistent with those applied, in the preparation of the Business Plan,
unless, in relation to any set of financial statements, the Company notifies
the Facility Agent that there has been a change in the Accounting Principles,
the accounting practices or reference periods and its auditors (or, if
appropriate, the auditors of the Obligor or the Company) deliver to the
Facility Agent:

(A)                a description of any change necessary
for those financial statements to reflect the Accounting Principles, accounting
practices and reference periods upon which the Business Plan or, as the case
may be, that Obligor’s Original Financial Statements were prepared; and

(B)                  sufficient information, in form and
substance as may be reasonably required by the Facility Agent, to enable the
Lenders to determine whether Clause 24 (Financial covenants)
and Clause 25.23 (Guarantors) have been complied
with, to determine the Margin as set out in the definition of “Margin” and Clause 12.3 (Margin Ratchet),
to determine whether a person is a Material Company as set out in the
definition of “Material Company” and to make an
accurate comparison between the financial position indicated in those financial
statements and the Business Plan (in the case of the Company) or that Obligor’s
Original Financial Statements (in the case of an Obligor).

 85
 

 

(b)                                     If the Company notifies
the Facility Agent of a change in accordance with sub-paragraph (i) above then
the Company and Facility Agent shall enter into negotiations in good faith with
a view to agreeing:

(i)                        whether or not the change might
result in any material alteration in the commercial effect of any of the terms
of this Agreement; and

(ii)                     if so, any amendments to this
Agreement which may be necessary to ensure that the change does not result in
any material alteration in the commercial effect of those terms,

and if any amendments are
agreed they shall take effect and be binding on each of the Parties in
accordance with their terms.

If no such agreement is
reached within 30 days of that notification of change, the Facility Agent shall
(if so requested by the Majority Lenders) instruct the auditors of the Company
or independent accountants (approved by the Company or, in the absence of such
approval within 5 days of request by the Facility Agent of such approval, a
firm with recognised expertise) to determine any amendment to Clause 24.2 (Financial condition) the Margin
computations set out in the definition of “Margin”
and Clause 12.3 (Margin Ratchet),
and any other terms of this Agreement which those auditors or, as the case may
be, accountants (acting as experts and not arbitrators) consider appropriate to
ensure the change does not result in any material alteration in the commercial
effect of the terms of this Agreement. 
Those amendments shall take effect when so determined by those auditors,
or as the case may be, accountants.  The
cost and expense of those auditors or accountants shall be for the account of
the Company.

Any reference in this
Agreement to those financial statements shall be construed as a reference to
those financial statements as adjusted to reflect the basis upon which the
Business Plan or, as the case may be, the Original Financial Statements were
prepared.

(c)                                      The Company shall
procure that each set of Annual Financial Statements shall be audited by one of
the internationally recognised “big four” firm of accountants or such other
auditors with the prior written consent of the Majority Lenders.

(d)                                     The Company shall
procure that each set of Quarterly Financial Statements shall be in a form
reasonably acceptable to the Facility Agent and include a balance sheet, profit
and loss account and cashflow statement.

23.4                     Group
Companies

The Company shall, at the
request of the Facility Agent, but no more often than once a year unless a
Default is continuing, supply to the Facility Agent a report issued by its
auditors (or, if such report is not customarily issued by its auditors, such
other

 86
 

evidence as the Facility
Agent may reasonably require) stating which of the Subsidiaries are Material
Subsidiaries.

23.5                     Information:
miscellaneous

The Company shall supply
to the Facility Agent (in sufficient copies for all the Lenders, if the
Facility Agent so requests):

(a)                                      all documents
that are required by law or the articles of association or partnership
agreement to be dispatched by the Company to its shareholders generally (or any
class of them) or dispatched by the Company or any Material Company to its
creditors generally at the same time as they are dispatched;

(b)                                     if any Event of
Default is continuing, such information or projections regarding the financial
condition, business, property, assets, operations, performance or prospects of
any member of the Group as any Finance Party (through the Facility Agent) may
reasonably request; and

(c)                                      promptly, details
of any disposal, claim or circumstance which will require a prepayment of Loans
under paragraph (b) of Clause 11.7 (Exit),
Clause 11.8 (Equity Proceeds) and
Clause 11.9 (Disposal Proceeds);

(d)                                     any other
information and documents as may be required under Sections 13, 13(a) and 18 of
the German Banking Act (Gesetz über das
Kreditwesen),

provided
that the Company shall not be obliged to disclose to the
Facility Agent any non-public information about the Group that would result in
the Group being in breach of any legal or regulatory restriction applicable to
any member of the Group.

23.6                     Notification
of default

(a)                                      Each Obligor
shall notify the Facility Agent of any Default (and the steps, if any, being
taken to remedy it) promptly upon becoming aware of its occurrence (unless that
Obligor is aware that a notification has already been provided by another
Obligor).

(b)                                     Promptly upon a
request by the Facility Agent, the Company shall supply to the Facility Agent a
certificate signed by at least one director or senior officer on its behalf
certifying that no Default is continuing (or if a Default is continuing,
specifying the Default and the steps, if any, being taken to remedy it).

23.7                     “Know your
customer” checks

(a)                                      If:

(i)                        the introduction of or any
change in (or in the interpretation, administration or application of) any law
or regulation made after the date of this Agreement;

 87
 

 

(ii)                     any change in the status of an
Obligor or the composition of the shareholders of an Obligor after the date of
this Agreement; or

(iii)                  a proposed assignment or transfer by
a Lender of any of its rights and/or obligations under this Agreement to a
party that is not a Lender prior to such assignment or transfer,

obliges the Facility
Agent or any Lender (or, in the case of sub-paragraph (iii) above, any
prospective new Lender) to comply with “know
your customer” or similar identification procedures in circumstances
where the necessary information is not already available to it, each Obligor
shall promptly upon the request of the Facility Agent or any Lender supply, or
procure the supply of, such documentation and other evidence as is reasonably
requested by the Facility Agent (for itself or on behalf of any Lender) and
reasonably obtainable by the relevant Obligor or any Lender (for itself or, in
the case of the event described in sub-paragraph (iii) above, on behalf of any
prospective new Lender) in order for the Facility Agent, such Lender or, in the
case of the event described in sub-paragraph (iii) above, any prospective new
Lender to carry out and be satisfied (acting reasonably) with the results of
all necessary “know your customer”
or other similar checks under all applicable laws and regulations pursuant to
the transactions contemplated in the Finance Documents.

(b)                                     Each Lender shall
promptly upon the request of the Facility Agent supply, or procure the supply
of, such documentation and other evidence as is reasonably requested by the
Facility Agent (for itself) in order for the Facility Agent to carry out and be
satisfied with the results of all necessary “know your
customer” or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance Documents.

(c)                                      The Company
shall, by not less than 10 Business Days’ prior written notice to the Facility
Agent, notify the Facility Agent (which shall promptly notify the Lenders) of
its intention to request that one of its Subsidiaries becomes an Additional
Obligor pursuant to Clause 28 (Changes to
the Obligors).

(d)                                     Following the
giving of any notice pursuant to paragraph (c) above, if the accession of such
Additional Obligor obliges the Facility Agent or any Lender to comply with “know your customer” or similar identification procedures in
circumstances where the necessary information is not already available to it,
the Company shall promptly upon the request of the Facility Agent or any Lender
supply, or procure the supply of, such documentation and other evidence as is
reasonably requested by the Facility Agent (for itself or on behalf of any
Lender) or any Lender (for itself or on behalf of any prospective new Lender)
and reasonably obtainable by the relevant Obligor in order for the Facility
Agent or such Lender or any prospective new Lender to carry out and be
satisfied (acting reasonably) with the results of all necessary “know your customer” or other similar checks under all
applicable laws and

 88
 

regulations pursuant to the accession of such Subsidiary to this
Agreement as an Additional Obligor.

24.                           FINANCIAL
COVENANTS

24.1                     Financial
definitions

In this Clause 24:

“Borrowings” means, at any time, the
outstanding principal, capital or nominal amount and any fixed or minimum
premium payable on prepayment or redemption of any indebtedness for or in
respect of:

(a)                                      moneys
borrowed and debit balances with financial institutions;

(b)                                     any
amount raised by acceptance under any acceptance credit facility;

(c)                                      any
amount raised pursuant to any note purchase facility or the issue of bonds,
notes, debentures, loan stock or any similar instrument  including but not limited to, the Patterson
Note if issued by a member of the Group;

(d)                                     the
amount of any liability in respect of any lease or hire purchase contract which
would, in accordance with the Accounting Principles, be treated as a finance or
capital lease;

(e)                                      receivables
sold or discounted other than to members of the Group (other than any
receivables to the extent they are sold on a non recourse basis);

(f)                                        any
counter indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument issued by a
bank or financial institution (excluding the amount of any trade credit in
respect of the supply of assets or services unless payment is due more than 180
days from the date on which the goods were delivered or services were
performed);

(g)                                     any
amount raised by the issue of redeemable shares which are redeemable on or
before the last Termination Date;

(h)                                     any
amount of any liability under an advance or deferred purchase agreement if one
of the primary reasons behind the entry into the agreement is to raise finance
other than any liability arising under the U.S. Exclusivity Agreement;

(i)                                         any
amount raised under any other transaction (including any forward sale or
purchase agreement) having the commercial effect of a borrowing; and

(j)                                         (without
double counting) the amount of any liability in respect of any guarantee or
indemnity for any of the items referred to in paragraphs (a) to (i) (inclusive)
above,

provided
that, for the avoidance of doubt, the Financial Indebtedness
referred to in sub-paragraph (b)(vii) of Clause 25.17 (Financial Indebtedness) shall not be
counted as “Borrowings”.

 89
 

 

“Cash Interest Costs” means for any Relevant
Period the aggregate amount of the accrued interest payments in respect of
Borrowings which are paid or payable in cash in respect of that Relevant
Period.

“Consolidated Adjusted EBITDA” means for any
Relevant Period the consolidated income before taxes of the Group from ordinary
activities for such Relevant Period:

(a)                                      before deducting any Consolidated Net
Finance Charges;

(b)                                     before taking into account any items
treated as exceptional or extraordinary items, including costs incurred in
connection with an acquisition permitted pursuant to sub-paragraph (b)(ii) of
Clause 25.7 (Acquisitions);

(c)                                      before taking into account any realised or
unrealised gains or losses with respect to Utilisations due to movements in
exchange rates occurring during such period to the extent the same has not
resulted in a cash receipt or payment by the Group;

(d)                                     before deducting any Refinancing Costs and
any Acquisition Costs;

(e)                                      after deducting the amount of any profit
(and adding the loss) of any member of the Group which is attributable to
minority interests;

(f)                                        after deducting the amount of any profit of
any investment or entity (which is not itself a member of the Group) in which
any member of the Group has an ownership interest to the extent that the amount
of such profit included in the financial statements of the Group exceeds the
amount (net of applicable withholding tax) received in cash by members of the
Group through distributions by such investment or entity;

(g)                                     before deducting any amount attributable to
the amortisation of Refinancing Costs or costs of intangible assets or the
depreciation of tangible assets and current assets or write off of research and
development currently in progress incurred in connection with purchase price
accounting (fair market value adjustments/step-up);

(h)                                     before taking into account pension interest
cost;

(i)                                         before deducting option or similar non-cash
expenses; and

(j)                                         before deducting any non-recurring costs
and expenses incurred in order to ensure compliance with Sarbanes-Oxley Act of
2002 and US Regulation 404,

in each case, to the
extent added, deducted or taken into account, as the case may be, for the
purposes of determining income/(loss) before taxation of the Group from
ordinary activities.

“Consolidated Net Finance Charges” means,
for any Relevant Period, the aggregate amount of the accrued interest,
commission, fees, discounts, prepayment penalties or

 90
 

 

premiums and other
finance payments in respect of Borrowings whether paid, payable or capitalised
by any member of the Group in respect of that Relevant Period:

(a)                                      excluding any such obligations owed to any
other member of the Group;

(b)                                     including the interest element of leasing
and hire purchase payments;

(c)                                      including any accrued commission, fees,
discounts and other finance payments payable by any member of the Group under
any interest rate hedging arrangement;

(d)                                     deducting any accrued commission, fees,
discounts and other finance payments owing to any member of the Group under any
interest rate hedging instrument;

(e)                                      deducting any accrued interest owing to any
member of the Group on any deposit or bank account;

(f)                                        excluding any Refinancing Costs; and

together with the amount
of any cash dividends or distributions paid or made by the Original Borrower in
respect of that Relevant Period.

“Consolidated Total Net Debt” means, at any
time, the aggregate amount of all obligations of the Group for or in respect of
Borrowings but:

(a)                                      excluding any such obligations to any other
member of the Group;

(b)                                     including, in the case of finance leases,
only the capitalised value therefore; and

(c)                                      deducting the aggregate amount of freely
available Cash and Cash Equivalent Investments held by any member of the Group
at such time which can be applied in prepayment or prepayment of the
Facilities, whether as a result of dividend payments, loans or other payments
made to the relevant member of the Group.

and so that no amount
shall be included or excluded more than once.

“Financial Half-Year” means the period of
six months commencing on the day after each Half-Year Date.

“Half-Year Date” means each of 31 March and
30 September.

“Refinancing Costs” means cost and expenses
incurred by the Group in connection with the refinancing of the Existing Senior
Facilities Agreement and the Existing Mezzanine Facilities Agreement pursuant
to the Facilities as set out in the Funds Flow Statement.

 91

 

“Relevant Period” means each period of
twelve months ending on the last day of the Parent’s financial year and each
period of twelve months ending on the last day of each Financial Half Year of
the Parent.

“Semi-Annual Financial Statements” means the
Quarterly Financial Statements in respect of the financial quarters ending on
each Half Year Date delivered to the Facility Agent pursuant to paragraph (b)
of Clause 23.1 (Financial Statements).

24.2                     Financial
condition

The Company shall ensure
that:

(a)                                      Debt Cover: The ratio of Consolidated
Total Net Debt to Consolidated Adjusted EBITDA in respect of any Relevant
Period specified in Column 1 below shall not be greater than the ratio set out
in Column 2 below opposite that Relevant Period.

	
  Column 1

  Relevant Period expiring

  	
   

  	
  Column 2

  Ratio

  
	
   

  	
   

  	
   

  
	
  31 March 2007

  	
   

  	
  4.00:1

  
	
   

  	
   

  	
   

  
	
  30 September 2007

  	
   

  	
  3.75:1

  
	
   

  	
   

  	
   

  
	
  31 March 2008

  	
   

  	
  3.50:1

  
	
   

  	
   

  	
   

  
	
  30 September 2008

  	
   

  	
  3.00:1

  
	
   

  	
   

  	
   

  
	
  31 March 2009

  	
   

  	
  2.75:1

  
	
   

  	
   

  	
   

  
	
  Thereafter

  	
   

  	
  2.50:1

  

 

(b)                                     Cash Interest Cover: The ratio of
Consolidated Adjusted EBITDA to Cash Interest Costs in respect of any Relevant
Period (commencing with the Relevant Period expiry 31 March 2007) shall not be
less than 4.00:1.

24.3                     Financial
testing

The financial covenants
set out in Clause 24.2 (Financial condition)
shall be tested by reference to each of the financial statements and/or each
Compliance Certificate delivered pursuant to Clause 23.2 (Compliance Certificate).

24.4                     Adjustments

For the purpose of
calculating the ratios under Clause 24.2 (Financial
Condition) in relation to any Relevant Period, each of the relevant
figures will be calculated on a pro forma basis including each acquisition
permitted under sub-paragraph (b)(ii) or (b)(v) of Clause 25.7 (Acquisitions) and each disposal of assets
of the Group as if that acquisition or disposal had occurred on the first day
of the Relevant Period.

24.5                     First Period

In relation to any
Relevant Period before January 2008, for the purpose of calculating:

(a)                                      Cash Interest
Cost and Consolidated Net Finance Charges, the relevant figure for the period
from 1 January 2007 to the relevant calculation date shall be annualised by
dividing the relevant figure by the number of months in the

 92
 

 

period from 1 January 2007 to the relevant
calculation date and multiplying the result by 12.

(b)                                     Consolidated
Adjusted EBITDA, the pro forma Consolidated Adjusted EBITDA of the component
parts of the Group shall be calculated for the Relevant Period.

25.                           GENERAL
UNDERTAKINGS

The undertakings in this
Clause 25 remain in force from the date of this Agreement for so long as any
amount is outstanding under the Finance Documents or any Commitment is in
force.

25.1                     Authorisations

Each Party (other than a
Finance Party) shall promptly:

(a)                                      obtain, comply
with and do all that is necessary to maintain in full force and effect; and

(b)                                     supply, upon
request of the Facility Agent, certified copies to the Facility Agent of,

any Authorisation
required under any law or regulation of a Relevant Jurisdiction to:

(i)                        enable it to perform its
obligations under the Finance Documents; and

(ii)                     ensure the legality, validity,
enforceability or admissibility in evidence of any Finance Document,

where failure to do so is
likely to have a Material Adverse Effect.

25.2                     Compliance
with laws

Each Obligor shall (and
the Company shall ensure that each member of the Group shall) comply in all
respects with all laws to which it is subject, if failure so to comply is
likely to have a Material Adverse Effect.

25.3                     Environmental
compliance

Each Obligor shall (and
the Company shall ensure that each member of the Group shall):

(a)                                      comply in all
material respects with all Environmental Law;

(b)                                     obtain and
maintain and ensure compliance with any Environmental Permits; and

(c)                                      take all
reasonable steps in anticipation of known or expected future changes to or
obligations under Environmental Law or Environmental Permits,

where failure to do so is
likely to have a Material Adverse Effect.

 93
 

 

25.4                     Taxation

Each Obligor shall (and
the Company shall ensure that each member of the Group shall) duly and
punctually pay and discharge all Taxes imposed upon it or its assets within the
time period allowed without incurring penalties unless and only to the extent
that:

(a)                                      such payment is
being contested in good faith;

(b)                                     appropriate
reserves are being maintained for those Taxes; and

(c)                                      either such
payment can be lawfully withheld or non payment would not have a Material
Adverse Effect.

25.5                     Merger

No Obligor shall (and the
Company shall ensure that no other member of the Group will) enter into any
amalgamation, demerger, merger or corporate reconstruction (“merger”) except solvent mergers between
members of the Group where if one is an Obligor the surviving entity is or
becomes an Obligor or with the prior consent of the Majority Lenders, such
consent not to be unreasonably withheld where required to optimise the tax
structure of the Group, provided that the
Lenders’ position is not adversely affected. 
Notwithstanding the above, this Clause 25.5 shall not apply to a
Permitted Reorganisation.

25.6                     Change of
business

The Company and each
Obligor shall procure that no substantial change is made to the general nature
of the business of the Group from that carried on at the date of this
Agreement.

25.7                     Acquisitions

(a)                                      Unless the Non-Leveraged
Criteria has been met, no Obligor shall (and the Company shall ensure that no
other member of the Group will) incorporate or acquire a company or acquire (or
acquire an interest in) shares or securities or a business or undertaking.

(b)                                     Paragraph (a)
above shall not apply to an incorporation or acquisition:

(i)                        by a member of the Group
permitted pursuant to paragraph (b) of Clause 25.8 (Joint ventures);

(ii)                     of a company or corporation or
shares or securities or a business or undertaking (the “target”)
by a member of the Group provided that:

(A)                the target carries out a similar,
related or a complimentary line of business to the Group;

(B)                  on a pro forma
basis following consolidation of the target, there will be no breach of the
financial covenants set out in Clause 24 (Financial covenants)
(tested on a pro forma basis at the end of the
most recently ended Relevant Period and tested on a prospective

 94
 

 

pro
forma basis over the two following semi-annual testing
periods) as a result of the acquisition.

 

(iii)                  of Cash Equivalent Investments; or

(iv)                 the company incorporated or acquired
is a limited liability shelf company purchased or incorporated for the purpose
of affecting a Permitted Reorganisation; or

(v)                    of a company or corporation or
shares or securities or a business or undertaking by a member of the Group provided that the total consideration payable in relation to
all such acquisitions under this sub-paragraph 25.7(b)(v) shall not exceed,
when aggregated with the aggregate amount of all other Invested Funds at the
time of any such acquisition, the General Investments Threshold;

(vi)                 where such incorporation or
acquisition is a Permitted Reorganisation,

provided
that in each case no Event of Default is outstanding or no
Default would result from the proposed acquisition.

For the purpose of this
Clause:

“consideration” means all consideration
payable in relation to the relevant acquisition, both cash and non cash,
calculated on a debt free cash free basis and including  all earn-out amounts, post closing
adjustments and the amount of any deferred purchase price and any costs and
expenses incurred;

“earn-out amounts” means, in relation to the
relevant acquisition, the maximum earn-out amounts for which the relevant
member of the Group may be or become liable at any time save to the extent that
the liability to pay such earn-out amount has unconditionally and finally
terminated.

25.8                     Joint
ventures

(a)                                      Unless the
Non-Leveraged Criteria has been met, no Obligor shall (and the Company shall
ensure that no member of the Group will):

(i)                        acquire (or agree to acquire)
any shares, stocks, securities or other interest in any Joint Venture; or

(ii)                     transfer any assets or lend to or
guarantee or indemnify or give Security for the obligations of a Joint Venture
(or agree to transfer, lend, guarantee, indemnify or give Security for the
obligations of a Joint Venture).

(b)                                     Paragraph (a) does
not apply to the acquisition or agreement to acquire any shares, stocks,
securities or other interest in any Joint Venture or the transfer of any asset
or the making of any loan to a Joint Venture if the aggregate amount payable
for such acquisition, the higher of book value and market value of such asset
transferred and the principal amount of such loan does not,

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when aggregated with the aggregate amount of
all other Invested Funds at the time of such acquisition, transfer or loan,
exceed the General Investments Threshold, provided that no Event of Default is outstanding at the time
of such acquisition, agreement, transfer or loan or would arise as a result
thereof.

25.9                     Preservation
of assets

Each Obligor shall (and
the Company shall ensure that each member of the Group shall) maintain and
preserve, in good working order and condition (ordinary wear and tear excepted)
all of its assets necessary in the conduct of the business of the Group as a
whole, as conducted at the date of this Agreement, where failure to do so would
likely have a Material Adverse Effect.

25.10               Pari passu ranking

Each Obligor shall (and
the Company shall ensure that each member of the Group will) ensure that at all
times any unsecured and unsubordinated claims of a Finance Party held against
it under the Finance Documents rank at least pari passu with the claims of all
its other unsecured and unsubordinated creditors except those creditors whose
claims are mandatorily preferred by laws of general application to companies.

25.11               Negative pledge

In this Clause 25.11, “Quasi Security” means a transaction
described in paragraph (b) below.

Except as permitted under
paragraph (c) below:

(a)                                      No Obligor shall
(and the Company shall ensure that no other member of the Group will) create or
permit to subsist any Security over any of its assets.

(b)                                     No Obligor shall
(and the Company shall ensure that no other member of the Group will):

(i)                        enter into any arrangement
under which money or the benefit of a bank or other account may be applied, set
off or made subject to a combination of accounts; or

(ii)                     enter into any other preferential
arrangement having a similar effect,

in circumstances where
the arrangement or transaction is entered into primarily as a method of raising
Financial Indebtedness or of financing the acquisition of an asset.

(c)                                      Paragraphs (a)
and (b) above do not apply to:

(i)                        any netting or set off
arrangement (or Security over a credit balance in a bank account which is
entered into to effect such arrangement) entered into by any member of the
Group in the ordinary course of its banking arrangements for the purpose of
netting debit and credit balances of members of the Group;

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(ii)                     any lien or other Security arising
by operation of law in the ordinary course of trading and not (unless such lien
or other Security is removed within 75 days of its creation) by reason of
default;

(iii)                  Security existing on the Closing Date
as listed in Schedule 13 (Overview Loans and
Securities Subsidiaries);

(iv)                 any Security or Quasi-Security over or
affecting any asset acquired by a member of the Group after the Closing Date or
assets of companies which become members of the Group after the Closing Date;

(A)                up to an amount of EUR 30,000,000;
or

(B)                  if the Security or Quasi-Security is
removed or discharged within 6 months of the acquisition of such asset or such
company becoming a member of the Group provided that the
Security or Quasi-Security was not created or the principal amount secured has
not increased in contemplation of the acquisition of the relevant asset;

(v)                    any retention of title, hire
purchase or conditional sale arrangement or arrangements having similar effect
in respect of goods supplied to a member of the Group in the ordinary course of
business and on the suppliers standard or usual terms;

(vi)                 any Security in favour of an Ancillary
Lender over goods or documents of title to goods arising in the ordinary course
of letter of credit transactions entered into in the ordinary course of
business;

(vii)              any Security securing the Existing Senior
Facility Agreement and/or the Existing Mezzanine Facility Agreement provided that such Security is released upon the first Utilisation
under the Facilities;

(viii)           cash cover relating to a Bank Guarantee; or

(ix)                   any Security arising pursuant to an
order of attachment or injunction restraining disposal of assets or similar
legal process arising in connection with court proceedings being contested by
the relevant member of the Group in good faith with a reasonable prospect of
success where the amount of any claims being contested does not exceed in
aggregate in respect of all members of the Group EUR 15,000,000 (or its
equivalent in any other currency or currencies);

(x)                      any Security constituted by a
finance lease, hire purchase or conditional sale agreement, where the Financial
Indebtedness arising under such arrangement is permitted pursuant to paragraph
(b) of Clause 25.17 (Financial Indebtedness);

(xi)                   any Security arising under condition
14 of the general business conditions of German banks or similar provisions of
other banks with

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whom any member of the Group maintains a banking relationship in the
ordinary course of business;

(xii)                any Security created to secure loans by
any member of the Group to another member of the Group as provided in
sub-paragraphs (b)(i), (b)(iii) and (b) (iv) of Clause 25.14 (Loan and Credit);

(xiii)             Security in favour of a bank over goods
and documents of title arising in the ordinary course of documentary credit
transactions entered into by a member of the Group in the ordinary course of
business up to an aggregate amount not exceeding EUR 15,000,000;

(xiv)            any Security arising by operation of law in
favour of any governmental, state or local tax authority in respect of Taxes
(1) that are not yet due or (2) for which adequate reserves are being
maintained, the payment of which is contested in good faith and can be lawfully
withheld;

(xv)               Quasi Security which may have arisen as
a result of the Permitted Bensheim Disposal; and

(xvi)            any Security in addition to that within
sub-paragraphs (i) to (xv) above and securing indebtedness in aggregate not
exceeding at any one time EUR 30,000,000 or its equivalent; or if the
Non-Leveraged Criteria are satisfied EUR 60,000,000 or its equivalent.

25.12               Treasury
Transactions

No Obligor shall (and the
Company will procure that no member of the Group will) enter into Treasury
Transaction, other than:

(a)                                      spot and forward
delivery foreign exchange contracts entered into in the ordinary course of
business of a member of the Group and not for speculative purposes;

(b)                                     any Treasury
Transaction entered into for the hedging of actual or projected real exposures
arising in the ordinary course of trading activities of a member of the Group
(and not for speculative purposes).

25.13               Arm’s length basis

(a)                                      Except as
permitted by paragraph (b) below, no Obligor shall (and the Company shall
ensure no member of the Group will) enter into any transaction with any person
except on arm’s length terms or better (from the Group’s perspective).

(b)                                     The following
transactions shall not be a breach of this Clause 25.12:

(i)                        payment of reasonable fees and
costs for non executive directors of any member of the Group who are nominees
of the Investors;

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(ii)                     amounts paid to Sirona Holdings
Luxco SCA under  sub-paragraph (b)(iii)
of Clause 25.16 (Dividends, share capital
redemptions and payments on subordinated debt);

(iii)                  the amount envisaged to be paid to
the Investors pursuant to Clause 25.16 (Dividends,
share capital  redemptions and payments
on subordinated debt);

(iv)                 intra Group loans permitted under
Clause 25.14 (Loans and Credit);

(v)                    any payment of Refinancing Costs as
envisaged in the Funds Flow Memorandum;

(vi)                 fees, costs and expenses payable under
the Finance Documents in the amounts set out in the Finance Documents delivered
to the Facility Agent under Clause 4.1 (Initial
Conditions Precedent); and

(vii)              any amounts agreed by the Facility Agent
(acting on the instructions of the Majority Lenders).

25.14               Loans and credit

(a)                                      Unless the
Non-Leveraged Criteria has been met, except as permitted under paragraph (b)
below no Obligor shall (and the Company shall procure that no member of the Group
will) make any loans or grant any credit or make any other financial
arrangement having a similar effect.

(b)                                     Paragraph (a)
above does not apply to:

(i)                        a loan by an Obligor to an
Obligor;

(ii)                     a loan by a member of the Group
which is not an Obligor to a member of the Group;

(iii)                  a loan by an Obligor which is a
member of the Group to a member of the Group which is not an Obligor so long as
the aggregate of the Financial Indebtedness outstanding under all such loans
does not exceed EUR 25,000,000 (or the equivalent thereof in any other currency
or currencies) at any time;

(iv)                 a trade credit granted in the ordinary
course of trading, on arm’s length terms and upon terms usual for such trade,
which do not exceed payment terms of 180 days;

(v)                    a loan made by a member of the
Group to another member of the Group listed in Schedule 13 (Overview Loans and Securities Subsidiaries)
up to the amount listed in such Schedule;

(vi)                 a loan by a member of the Group to the
Company or a Holding Company of the Company in order to enable the Company or
such Holding Company to redeem the share capital in the Company or such 

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Holding Company held by Senior Management provided that the aggregate amount of such loan shall not
exceed, when aggregated with the amount of all dividends declared and/or paid
under paragraph (c) of Clause 25.16 (Dividends,
share capital redemptions and payments on subordinated debt), EUR
20,000,000 in any year (or the equivalent thereof in any other currency or
currencies),

provided
that no Default is continuing when, or would occur
immediately after, any such payment is made;

(vii)              a loan (in addition to the loans referred
to in sub-paragraphs (i) to (vi) above) made by a member of the Group to any
other person provided that the aggregate amount
of all such loans, when aggregated with the aggregate amount of all other
Invested Funds at the time of such loan, does not exceed the General
Investments Threshold, provided further that no
Event of Default is outstanding at such time or would arise as a result
thereof.

25.15               No Guarantees or
indemnities

In this Clause 25.15 “guarantee” means a guarantee, indemnity,
counter indemnity or other financial arrangement having a similar effect for
the benefit of any person or any other assurance against loss.

(a)                                      Except as
permitted under paragraph (b) below no Obligor shall (and the Company shall
procure that no member of the Group will) give any guarantee in respect of any
obligation of any person.

(b)                                     Paragraph (a) does
not apply to a guarantee which is:

(i)                        any guarantee to be given or to
remain outstanding after the Non-Leveraged Criteria has been met;

(ii)                     given in connection with credit
granted to a member of the Group under any deferred purchase agreement entered
into in the ordinary course of trade and upon terms usual for such trade and
is:

(A)                a guarantee given by a member of the
Group for the obligations of member of the Group under that deferred purchase
agreement; or

(B)                  a guarantee given by a member of the
Group in respect of a guarantee, indemnity, bond, standby or documentary letter
of credit or other instrument issued by a bank or financial institution (on
normal commercial terms) to support the obligations of a member of the Group
under that deferred purchase agreement;

(iii)                  given by a member of the Group in
respect of the obligations of another member of the Group and would, if it were
a loan by that member of the Group to the other member of the Group, be
permitted under sub-paragraph (b)(ii) to (iii) of Clause 25.14 (Loans and Credit);

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(iv)                 a counter-indemnity given in favour
Landesbank Hessen-Thüringen (Helaba) in relation to a guarantee issued by
Landesbank Hessen-Thüringen (Helaba) on account of contingent liabilities of
members of the Group relating to old age part-time work (Altersteilzeit) provided the aggregate
amount (actual and contingent) of such counter-indemnity does not at any time
exceed EUR 3,000,000 (or the equivalent thereof in any other currency or
currencies);

(v)                    a guarantee (other than a guarantee
referred to in sub-paragraphs (i) to (iv) above) granted by a member of the
Group in favour of any other person provided that the
aggregate amount of all such guarantees, when aggregated with the aggregate
amount of all other Invested Funds at the time of such guarantee, does not exceed
the General Investments Threshold, provided further that no
Event of Default is outstanding at such time or would arise as a result
thereof.

25.16               Dividends, share
capital redemptions and payments on subordinated debt

(a)                                      Unless the
Non-Leveraged Criteria has been met, the Company shall not:

(i)                        declare, make or pay any
dividend, charge, fee or other distribution on or in respect of its share
capital (or any class of its share capital);

(ii)                     repay or distribute any dividend
or share premium reserve;

(iii)                  make any redemption, repurchase,
retirement, disposal, return, repayment or reduction by a company of its share
capital and any redemption or reduction by a company of its capital redemption
or other reserve

(iv)                 pay or allow any member of the Group
to pay any management, advisory or other fee to or to the order of any of its
shareholders.

(b)                                     Paragraph (a) does
not apply to:

(i)                        payment of dividends up to a
total aggregate amount equal to 50% of the Group’s distributable profits in
each of its financial years provided that the
ratio of Consolidated Total Net Debt to Consolidated Adjusted EBITDA is less
than 3.00:1 on a pro forma basis and no Event of Default has occurred and is
continuing at the time of such payment or as a result thereof;

(ii)                     payments from the Company to any
member of the Group for the financing of their and any holding company of any
member of the Group’s reasonable ongoing administrative costs (including
taxes);

(iii)                  payment to Sirona Holdings Luxco SCA
of an advisory and/or management fee not exceeding in aggregate EUR 500,000 (or
the equivalent thereof in any other currency or currencies) per annum;

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(iv)                 payments to any of the Investors of
any reasonable fees in connection with any advice relating to future mergers
and acquisitions;

(v)                    payment of amounts permitted under
sub-paragraph (b)(i) of Clause 25.13 (Arm’s
length basis) and all other reasonable out-of pockets expenses
properly incurred by the board members in relation to the Group or the
Facilities,

which, in the case of payments
under paragraphs (ii) through to (v), shall be permitted provided that on the occurrence of an Event
of Default which is continuing, the aggregate amount of all payments under
sub-paragraphs (ii), (iii) and (iv) above shall not in aggregate exceed EUR
1,000,000 per annum (or the equivalent thereof in any other currency or
currencies), (ii) no Event of Default is continuing or would occur immediately
after that payment is made provided further that
any such payments which are not permitted to be made while an Event of Default
is continuing shall continue to accrue and the accrued amount of such payment
may subsequently be paid at any time while no Default  is continuing.

(c)                                      Paragraph (a)
above shall not apply to any payment paid by the Company or any member of the
Group in order to enable the redemption of share capital in the Company or any
member of the Group held by Senior Management provided
that the aggregate amount of such dividend shall not exceed, when
aggregated with the amount of all loans made under sub-paragraph (b)(vi) of
Clause 25.14 (Loans and Credit),
EUR20,000,000 (or the equivalent thereof in any other currency or currencies)
and provided further no Default is
continuing when or would occur immediately after any such payment is made.

25.17               Financial
Indebtedness

(a)                                      Except as
permitted under paragraph (b) below, no Obligor shall (and the Company shall
ensure that no member of the Group will) incur or allow to remain outstanding
any Financial Indebtedness.

(b)                                     Paragraph (a)
above does not apply to Financial Indebtedness which is:

(i)                        monies borrowed or guarantees
or indemnities or counter-indemnities given under the Finance Documents or
Financial Indebtedness under the Ancillary Documents;

(ii)                     monies borrowed or guarantees or
indemnities or counter indemnities given under the Existing Senior Facility
Agreement and/or Existing Mezzanine Facility Agreement provided
that all amounts outstanding under such agreements shall be repaid
in full on the Closing Date;

(iii)                  any Financial Indebtedness under the
lease agreement related to the Permitted Bensheim Disposal;

(iv)                 any Financial Indebtedness disclosed
in Schedule 13 (Overview Loans and
Securities Subsidiaries) or approved by the Majority Lenders;

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(v)                    monies borrowed under a loan from
another member of the Group which is permitted under Clause 25.14 (Loans and Credit), a guarantee in respect
of Financial Indebtedness of another member of the Group which is permitted
under sub-paragraph (b)(iii) of Clause 25.15 (No
Guarantees or indemnities) or any other guarantee, indemnity or
counter indemnity by a member of the Group which is permitted under Clause
25.15 (No Guarantees or indemnities);

(vi)                 indebtedness covered by a Bank
Guarantee or by a letter of credit, guarantee or indemnity issued under an
Ancillary Facility;

(vii)              Financial Indebtedness owed by any member
of the Group incorporated or operating in Japan and/or China pursuant to a
revolving credit facility agreement provided such Financial Indebtedness exists
as at the date hereof and does not and shall not at any time exceed
EUR3,000,000 (or the equivalent thereof in any other currency or currencies);

(viii)           Financial Indebtedness in respect of any
derivative transaction permitted under Clause 25.12 (Treasury Transactions);

(ix)                   the issue of the Patterson Note
where such issue takes place after 30 September 2007; and

(x)                      indebtedness additional to that
referred to in sub-paragraphs (i) to (ix) of this Clause 25.17 and which does
not exceed EUR 150,000,000 (or, if the Non-Leveraged Criteria has been met,
EUR 200,000,000. Upon the utilisation of any Incremental Loan under the
Incremental Facility the basket referred to in this paragraph (x) shall be
reduced by the amount of such Incremental Loan (or its equivalent in any other
currency or currencies) in an aggregate principal amount for the Group taken as
a whole.  For the purposes of determining
whether the monetary limit in this paragraph (x) has been exceeded any
guarantee, indemnity or counter indemnity obligation in respect of other forms
of Financial Indebtedness falling within this paragraph (x) shall not be double
counted.

25.18               Insurance

The Company shall ensure
that the Group maintains insurances which are at least at the levels and
provide for coverages consistent with recent historical practices as at the
Closing Date.

25.19               Pensions

(a)                                      The Company shall
ensure that adequate contributions are made to pension schemes operated by or
maintained for the benefit of members of the Group and/or any of its employees
and such pension schemes are fully funded (where required by law) based on
reasonable actuarial assumptions and recommendations and are operated or
maintained as required by law in each case where failure to do so would likely
have a Material Adverse Effect.

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(b)                                     The Company shall
deliver to the Facility Agent upon its reasonable request during the
continuance of a Default, and in any event at such time as those reports are
prepared in order to comply with the then current statutory or auditing
requirements, actuarial reports in relation to those pension schemes.

25.20               Access

Each Obligor shall (and
the Company shall ensure that each member of the Group shall) permit the
Facility Agent and/or their accountants or other professional advisers and
contractors free access at all reasonable times when an Event of Default is
continuing and when the Facility Agent believes that an Event of Default may be
continuing on reasonable grounds, on reasonable notice and during normal
business hours to (a) inspect and (subject to the reasonable requirements of
client confidentiality and business secrecy) take copies and extracts from the
books, accounts and records of each member of the Group, (b) meet and discuss
matters with Senior Management. The costs of investigation pursuant to this
clause are to be borne by the Lenders if the investigation shows that no Event
of Default had occurred but otherwise the costs shall be borne by the Company.

25.21               Intellectual
property

The Company shall procure
that the Group shall, save where failure to do so is not likely to have a
Material Adverse Effect:

(a)                                      preserve and
maintain the subsistence and validity of the Intellectual Property and use
reasonable endeavours to maintain and preserve all other Intellectual Property
with the care of an orderly acting merchant (Sorgfalt
eines ordentlichen Kaufmannes) carrying on a similar business to the
Group would use;

(b)                                     use reasonable
endeavours to prevent any infringement in any material respect of that
Intellectual Property;

(c)                                      make
registrations and pay all registration fees and taxes necessary to maintain
that Intellectual Property in full force and effect and record its interest in
that Intellectual Property;

(d)                                     not use or permit
that Intellectual Property to be used in a way or take any step or omit to take
any step in respect of that Intellectual Property which may materially and
adversely affect the existence or value of that Intellectual Property or
imperil the right of any member of the Group to use such property; and

(e)                                      not discontinue
the use of that Intellectual Property.

25.22               Amendments

No Obligor shall (and the
Company shall ensure that no member of the Group will) amend, vary, novate,
supplement, supersede, waive or terminate any document delivered to the
Facility Agent pursuant to Clause 4.1 (Initial
Conditions Precedent)

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unless such amendment,
variation, novation, supplement, superseding, waiver or termination is not
materially prejudicial to the Lenders.

25.23               Guarantors

(a)                                      Subject to the
Guarantee Principles, the Company shall ensure that the test set out in
paragraph (b) below will be complied with on the date falling 30 days following
the Closing Date and thereafter on each (latest permitted) date for delivery of
the Semi-Annual Financial Statements.

(b)                                     Subject to the
Guarantee Principles, the Company shall ensure that as at the end dates
described in paragraph (a):

(i)                        the aggregate of the earnings
(calculated on the same basis as Consolidated Adjusted EBITDA) of each of the
Guarantors shall account for at least 80% of the Group’s Consolidated Adjusted
EBITDA on the Closing Date; and

(ii)                     the aggregate Gross Assets of the
Guarantors shall account for at least 80% of the value of the Group’s
consolidated Gross Assets,

each as determined by
reference to the most recent Compliance Certificate supplied by the Company
and/or the latest audited annual and unaudited half yearly financial statements
of that Subsidiary and of the Group.

25.24               Accounting
reference date and auditors

(a)                                      The Company shall
procure that it retains 30 September as its accounting reference date and shall
not change its accounting reference date without the consent of the Majority
Lenders.

(b)                                     Neither the
Company nor any Obligor shall (and the Company shall procure that no member of
the Group will) change its auditors other than to one of the internationally
recognized “big four” firm of accountants or
with the prior written consent of the Majority Lenders.

25.25               ERISA

No Obligor shall
establish, become party to or incur any liability under or permit any of its
ERISA Affiliates to establish, become party to or incur any liability under any
employee benefit plan of the type referred to in Clause 22.20 (ERISA) where to do so would likely have a
Material Adverse Effect.

25.26               Limitation on
Lenders’ Control over German Obligors

(a)                                      Notwithstanding
Clause 25 (General Undertakings)
above, the provisions of Clauses 25.5 (Merger),
Clause 25.6 (Change of Business),
25.13 (Arm’s Length Basis) and
25.24 (Accounting Reference Date and
Auditors), (the “Relevant Restrictive
Covenants”) shall not apply to any member of the Group whose
Relevant Jurisdiction is Germany (together the “German Group”).

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(b)                                     The Company shall
give the Facility Agent no less than ten Business Days’ prior written notice of
the intention of it or any other member of the German Group to carry out any of
the acts or take any of the steps referred to in the Relevant Restrictive
Covenants.

(c)                                      The Facility
Agent shall be entitled, within ten Business Days of receipt of the Company
notice under paragraph (b) above, to request the relevant member of the German
Group to supply to the Facility Agent in sufficient copies for the Lenders any
relevant information in connection with the proposed action or steps referred
to in such notice.

(d)                                     The Facility Agent
shall notify the Company, within ten Business Days of receipt of the Company
notice under paragraph (b) above or if additional information has been
requested by the Facility Agent within the prescribed time, within ten Business
Days of receipt of such information, whether the proposed action or steps under
paragraph (a) above is or is, in the reasonable opinion of the Facility Agent,
acting on the instruction of the Majority Lenders, a Material Adverse Effect.

(e)                                      If the proposed
action or step under paragraph (a) above is so considered by the Facility Agent
to have a Material Adverse Effect and the relevant member of the German Group
nevertheless takes such action or steps under paragraph (a) above, the Facility
Agent shall be entitled to make (and, if so instructed by the Majority Lenders
shall make) the declaration, request and/or instruction set out in Clause 26.18
(Acceleration) after the expiry
of any notice or grace periods which would be applicable to such action but for
this Clause 25.26.

25.27               Compliance with
U.S. Exclusivity Agreement

(a)                                      No Obligor shall
take any action or omit to take any action which would give rise to a
termination of the U.S. Exclusivity Agreement or which would result in
liquidated damages becoming payable under such agreement at any time on or
before 30 September 2007 if such event would reasonably likely to have a
Material Adverse Effect.

(b)                                     In the event that
liquidated damages becomes payable, then to the extent Sirona Dental Systems
GmbH is entitled, it shall satisfy its liability by procuring that Sirona
Holdings Luxco SCA or a member of the Group issue preferred equity certificates
or junior subordinated promissory notes as contemplated by Section IX(A) of the
U.S. Exclusivity Agreement or in the event that liquidated damages are payable
in circumstances contemplated by Section IX(D) of the U.S. Exclusivity
Agreement, the Patterson Note provided that
if such preferred equity certificates or junior subordinated promissory notes
or the Patterson Note are issued by a member of the Group, the Company and the
Facility Agent on behalf of the Lenders shall enter into good faith
negotiations to find terms acceptable to the Company, the Majority Lenders and
Patterson Companies, Inc. (“Patterson”) for
subordination of

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Patterson’s claims under the U.S. Exclusivity
Agreement to those of the Finance Parties under the Finance Documents.

25.28               Federal Reserve
Regulations

Each U.S. Borrower will
use the Facilities without violating Regulations T, U and X.

25.29               Compliance
with U.S. Regulations

No Obligor shall (and the
Company shall ensure that no other member of the Group will) become an “investment
company” as such term is defined in the 1940 Act or otherwise subject to
regulation under the 1940 Act.  Neither
the making of any Loan, or the application of the proceeds or repayment of any
Loan by any Obligor nor the consummation of the other transactions contemplated
by this agreement will violate any provision of such act or any rule,
regulation or order of the SEC under the 1940 Act.

25.30               Anti-Money
Laundering

Each Obligor will use
commercially reasonable efforts to ensure that no funds used to pay the
obligations under the Finance Documents are derived from any unlawful activity.

25.31               Pooling agreements

The Company shall procure
that:

(a)                                      the Pooling
Agreements provide for the right of its cancellation by the Company;

(b)                                     the Pooling
Agreements shall remain in place and be maintained in full force and effect
until the Termination Date, unless otherwise agreed by the Facility Agent; and

(c)                                      Original Borrower
terminates the Pooling Agreements upon the request of the Facility Agent
without undue delay provided that an Event of Default has occurred.

26.                           EVENTS
OF DEFAULT

Each of the events or
circumstances set out in this Clause 26 is an Event of Default.

26.1                     Non payment

An Obligor or any other
party to a Finance Document (other than a Finance Party) does not pay on the
due date any amount payable pursuant to a Finance Document at the place at and
in the currency in which it is expressed to be payable unless:

(a)                                      its failure to
pay is caused by administrative or technical error; and

(b)                                     payment is made
within five Business Days of its due date.

26.2                     Financial
Covenants

Any requirement of Clause
24 (Financial Covenants) is not
satisfied.

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26.3                     Other
obligations

(a)                                      An Obligor or any
other party to a Finance Document (other than a Finance Party) does not comply
with any provision of the Finance Documents (other than those referred to in
Clause 26.1 (Non payment)) and
Clause 26.2 (Financial covenants).

(b)                                     No Event of Default
(resulting from a requirement under Clause 25.22 (Guarantors) not being satisfied) under paragraph (a) above
will occur if the failure to satisfy such requirement is capable of remedy and
is remedied within 5 Business Days of the earlier of the Facility Agent giving
notice to the Company or the Company or an Obligor becoming aware of the
failure to comply.

(c)                                      No Event of
Default under paragraph (a) above (other than any Event of Default referred to
in paragraph (b) above) will occur if the failure to comply is capable of
remedy and is remedied within 20 Business Days of the earlier of the Facility
Agent giving notice to the Company or the Company or an Obligor becoming aware
of the failure to comply.

26.4                     Misrepresentation

Any representation or
statement made or repeated by an Obligor or any other party to a Finance
Document (other than a Finance Party) in the Finance Documents or in any other
document delivered by or on behalf of it under or in connection with any
Finance Document is or proves to have been incorrect or misleading in any
material respect when made or repeated and the circumstances causing such
misrepresentation are not remedied (if capable of being remedied) within 20
Business Days of the earlier of the Company or any Obligor becoming aware
thereof or notice thereof to the Company by the Facility Agent.

26.5                     Cross default

(a)                                      Any Financial
Indebtedness of any member of the Group is not paid when due nor within any
originally applicable grace period.

(b)                                     Any Financial
Indebtedness of any member of the Group is declared to be or otherwise becomes
due and payable prior to its specified maturity as a result of an event of
default (however described).

(c)                                      Any commitment
for any Financial Indebtedness of any member of the Group is cancelled or suspended
by a creditor of any member of the Group as a result of an event of default
(however described).

(d)                                     Any creditor of
any member of the Group becomes entitled to declare any Financial Indebtedness
of any member of the Group due and payable prior to its specified maturity as a
result of an event of default (however described).

(e)                                      No Event of
Default will occur under this Clause 26.5 if the aggregate amount of Financial
Indebtedness or commitment for Financial Indebtedness falling

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within paragraphs (a) to (d) above is less
than EUR 25,000,000 (or its equivalent in any other currency or currencies).

26.6                     Insolvency

(a)                                      Any Material
Company or any Borrower is unable or admits inability to pay its debts as they
fall due or is deemed or declared under applicable law to be unable to pay its
debts, suspends making payments on its debts generally or, by reason of actual
or anticipated financial difficulties, commences negotiations with one or more
of its creditors with a view to rescheduling any of its indebtedness.

(b)                                     The value of the
assets of any Material Company or any Borrower is less than its liabilities
(taking into account contingent and prospective liabilities “Fortführungsprognose”) where the Relevant
Jurisdiction of the company is Germany or any other jurisdiction where this
would be a ground for the filing for insolvency proceedings.

(c)                                      A moratorium is
declared in respect of any indebtedness of any Material Company or any
Borrower.

(d)                                     For the purposes
of this Clause 26.6, “Material Company”
shall be deemed not to include any person referred to in paragraph (a) of the
definition of “Material Company” (other than any
Borrower) and the figure 5% in paragraphs (b)(i) and (b)(ii) of the definition
of Material Company shall be adjusted to read 7.5%.

(e)                                      Any Obligor shall
in any U.S. jurisdiction:

(i)                        apply for,
or consent to, the appointment of, or the taking of possession by, a receiver,
custodian, trustee, examiner or liquidator of itself or of all or a substantial
part of its property;

(ii)                     make a general
assignment for the benefit of its creditors;

(iii)                  commence a
voluntary case under Title 11 of the United States of America Code entitled
Bankruptcy (or any successor thereof), as amended;

(iv)                 file a petition
with respect to itself seeking to take advantage of any other law relating to
bankruptcy, insolvency, reorganisation, liquidation, dissolution, arrangement
or winding up, or composition or readjustment of debts; or

(v)                    take any
corporate action for the purpose of effecting any of the foregoing with respect
to itself.

26.7                     Insolvency
proceedings

(a)                                      Any corporate
action, legal proceedings or other procedure or step is taken in relation to:

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(i)                        the suspension of payments, a
moratorium of any indebtedness, winding up, dissolution, administration or
reorganisation (by way of voluntary arrangement, scheme of arrangement or
otherwise) of any Borrower or any Material Company;

(ii)                     a composition, assignment or
arrangement with any creditor of any Borrower or any Material Company; or

(iii)                  the appointment of a liquidator,
receiver, administrator, administrative receiver, compulsory manager or other
similar officer in respect of any Borrower or any Material Company,

or any analogous
procedure or step is taken in any jurisdiction.

(b)                                     Paragraph (a)
above shall not apply to any proceedings which are (i) being contested in good
faith or dismissed within 20 Business Days of commencement or (ii) the amount
of the debt that is the subject of such proceedings is less than
EUR 25,000,000 (or its equivalent in any other currency or currencies).

(c)                                      For the purposes
of this Clause 26.7, “Material Company”
shall be deemed not to include any person referred to in paragraph (a) of  the definition of “Material
Company” (other than any Borrower) and the figure 5% in paragraphs
(b)(i) and (b)(ii) of the definition of Material Company shall be adjusted to
read 7.5%.

(d)                                     In respect of any
Obligor, a proceeding or case shall be commenced, without the application or
consent of such Obligor, in any US court of competent jurisdiction, seeking:

(i)                        its reorganisation,
liquidation, dissolution, arrangement or winding-up or the composition or
readjustment of its debts;

(ii)                     the appointment of a receiver,
custodian, trustee, examiner, liquidator or the like of the Obligor or of all or
any substantial part of its property; or

(iii)                  similar relief in respect of any
Obligor under any law relating to the bankruptcy insolvency, reorganisation,
winding-up or composition or adjustment of debts,

and any such proceeding
or case referred to in sub-paragraphs (i)-(iii) above shall not be contested in
good faith within 20 Business Days of commencement or shall continue
undismissed, or an order, judgment or decree approving or ordering any of the
foregoing shall be entered and continue unstayed and in effect, for a period of
60 or more days, or an order for relief against such Obligor shall be entered
in an involuntary case under Title 11 of the United States of America Code
entitled Bankruptcy (or any successor thereto) as amended.

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26.8                     Creditors’
process

(a)                                      Any enforcement
of Security or any expropriation, attachment, sequestration, distress or
execution or any analogous process in any jurisdiction affects any asset or
assets of a Material Company with an aggregate value in excess of
EUR 25,000,000 and is not discharged within 20 Business Days, provided
such proceedings are contested in good faith.

(b)                                     For the purpose of
this Clause 26.8 “Material Company”
shall be deemed not to include any person referred to in paragraph (a) of the
definition of “Material Company” (other than any
Borrower) and the figure 5% in paragraphs (b)(i) and (b)(ii) of the definition
of Material Company shall be adjusted to read 7.5%

26.9                     Unlawfulness
and invalidity

(a)                                      It is or becomes
unlawful for an Obligor or any other party to a Finance Document (other than a
Finance Party) to perform any of its material obligations under the Finance
Documents.

(b)                                     Any obligation or
obligations of any Obligor or any other party to a Finance Document (other than
a Finance Party) under any Finance Documents are not or cease to be legal,
valid, binding or enforceable and the cessation individually or cumulatively
materially and adversely effects the interests of the Lenders under the Finance
Documents.

(c)                                      Any Finance
Document ceases to be in full force and effect.

26.10               Subordination
Agreement

(a)                                      Any party to the
Subordination Agreement (other than a Finance Party or a member of the Group)
fails to comply with any material provision of, or does not perform any
material obligation under, the Subordination Agreement; or

(b)                                     a representation
or warranty given by that party in the Subordination Agreement is incorrect in
any material respect,

and, if the non
compliance or circumstances giving rise to the misrepresentation are capable of
remedy, it is not remedied within 20 Business Days of the earlier of the
Facility Agent giving notice to that party or that party becoming aware of the
non compliance or misrepresentation.

26.11               Repudiation

An Obligor (or any other
relevant party other than a Finance Party) repudiates Finance Document or
evidences an intention to repudiate a Finance Document.

26.12               Cessation of
business

The Group ceases to carry
on the business of the Group as a whole.

26.13               Audit qualification

The auditors of the Group
qualify the audited annual consolidated financial statements of the Company
and:

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(a)                                      the qualification
is made because those auditors did not have access to information; and

(b)                                     the qualification
is materially adverse to the Finance Parties’ interests in the context of the
Finance Documents and the transactions contemplated in those documents.

26.14               Expropriation

The authority or ability
of any Obligor or other Material Company to conduct its business is limited or
wholly or substantially curtailed by any seizure, expropriation,
nationalisation, intervention, restriction or other action by or on behalf of
any governmental, regulatory or other authority or other person in relation to
it or any of its assets where such curtailment would likely have a Material
Adverse Effect.

26.15               Litigation

Any litigation,
arbitration, administrative, governmental, regulatory or other investigations,
proceedings or disputes are commenced or threatened against any member of the
Group or its assets which are likely to be adversely determined and, if
adversely determined, would be likely to have a Material Adverse Effect.

26.16               Payment of
liquidated damages under U.S. Exclusivity Agreement

Any liquidated damages
becomes payable by Sirona Dental Systems GmbH to Patterson Companies, Inc. under
the U.S. Exclusivity Agreement at any time on or before 30 September 2007 if
such event would have a Material Adverse Effect.

26.17               Material adverse
change

Any event or series of
events or circumstance which has a Material Adverse Effect (within the meaning
of paragraph (a) or (b) of the definition of “Material
Adverse Effect”) occurs after the date hereof.

26.18               Acceleration

On and at any time after
the occurrence of an Event of Default which is continuing the Facility Agent
may, and shall if so directed by the Majority Lenders, by notice to the
Company:

(a)                                      cancel the Total
Commitments and/or Ancillary Commitments whereupon they shall immediately be
cancelled and any fees payable under the Finance Documents in connection with
those Commitments or Ancillary Commitments shall be immediately due and
payable;

(b)                                     declare that all
or part of the Utilisations, together with accrued interest, and all other
amounts accrued under the Finance Documents be immediately due and payable,
whereupon they shall become immediately due and payable;

(c)                                      declare that all
or part of the Utilisations be payable on demand, whereupon they shall
immediately become payable on demand by the Facility Agent on the instructions
of the Majority Lenders;

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(d)                                     declare all or any
part of the amounts outstanding under the Ancillary Facilities to be
immediately due and payable (whereupon the same shall become so payable
together with accrued interest, commissions, fees or like charges on such
facilities and any other sums then owed by the Obligors under the Ancillary
Documents or this Agreement);

(e)                                      declare that full
cash cover in respect of each Bank Guarantee is immediately due and payable
whereupon it shall become immediately due and payable;

(f)                                        declare that
all or any part of the amounts outstanding under the Ancillary Facilities be
payable on demand, whereupon they shall immediately become payable on demand by
the Facility Agent on the instructions of the Majority Lenders; and/or

(g)                                     exercise any or
all of its rights, remedies, powers or discretions under the Finance Documents;

provided,
however, that if an Event of Default under Clause 26.6 (Insolvency) or Clause 26.7 (Insolvency Proceedings) shall occur in
respect of any Obligor, then without notice to such Obligor or any other act by
the Facility Agent or any other person, the Loans to such Obligor, interest
thereon and all other amounts owed by such Obligor under the Finance Documents
shall become immediately due and payable without presentment, demand, protest
or notice of any kind, all of which are expressly waived.

26.19               Certain Funds
Period

During the Certain Funds
Period unless a Certain Funds Default (which is also an Event of Default) has
occurred and is continuing, none of the Finance Parties shall be entitled to:

(a)                                      cancel any of its
Commitments under Facility A1 and/or Facility A2;

(b)                                     rescind, terminate
or cancel this Agreement or Facility A1 and/or Facility A2;

(c)                                      require repayment
of any Facility A1 Loan and/or Facility A2 Loan;

(d)                                     refuse to
participate in the making of any Utilisation under Facility A1 and/or Facility
A2;

(e)                                      exercise any
right of set off or counterclaim in respect of any Utilisation under Facility
A1 and/or Facility A2,

provided
that immediately upon the expiry of the Certain Funds Period
all such rights, remedies and entitlements shall be available to the Finance
Parties notwithstanding that they may not have been used or been available for
use during the Certain Funds Period.

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SECTION
9

CHANGES TO PARTIES

27.                           CHANGES
TO THE LENDERS

27.1                     Assignments and
transfers by the Lenders

Subject to this Clause
27, a Lender (the “Existing Lender”)
may:

(a)                                      assign any of its
rights; or

(b)                                     transfer by
novation any of its rights and obligations,

under any Finance
Document to another bank or financial institution or to a trust, fund or other
entity which is regularly engaged in or established for the purpose of making,
purchasing or investing in loans, securities or other financial assets (a “New Lender”) provided that such assignment
or transfer shall be in a minimum aggregate amount of EUR 5,000,000 or USD
equivalent thereof.

27.2                     Conditions of
assignment, transfer

(a)                                      Notwithstanding
any other provision of this Agreement, the consent of the Issuing Bank is
required for any assignment, transfer of any Lender’s rights and/or obligations
under the Revolving Facility.

(b)                                     An assignment will
only be effective on:

(i)                        consent to such assignment by
the Company (such consent not to be unreasonably withheld and deemed to be
given if not expressly refused within 8 Business Days);

(ii)                     receipt by the Facility Agent and
written confirmation from the New Lender (in form and substance satisfactory to
the Facility Agent) that the New Lender will assume the same obligations to the
other Finance Parties and the other Finance Parties as it would have been under
if it was an Original Lender;

(iii)                  the performance by the Facility Agent
of all “know your customer” or other checks
relating to any person that it is required to carry out in relation to such
assignment to a New Lender.

(c)                                      A transfer will
only be effective:

(i)                        on consent to such transfer by
the Company (such consent not to be unreasonably withheld and deemed to be
given if not expressly refused within 8 Business Days);

(ii)                     if the procedure set out in Clause
27.5 (Procedure for transfer) is
complied with.

(d)                                     Sub-paragraphs
(b)(i) and (c)(i) above shall not apply where a transfer is to another Lender,
an Affiliate of a Lender, where the Lender is a fund, to a Related Fund or when
an Event of Default is continuing.

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(e)                                      If:

(i)                        a Lender assigns or transfers
any of its rights or obligations under the Finance Documents or changes its
Facility Office; and

(ii)                     as a result of circumstances
existing at the date the assignment, transfer or change occurs, an Obligor
would be obliged to make a payment to the New Lender or Lender acting through
its new Facility Office under Clause 16 (Tax
gross up and indemnities) or Clause 17 (Increased costs),

then the New Lender or
Lender acting through its new Facility Office is only entitled to receive
payment under those Clauses to the same extent as the Existing Lender or Lender
acting through its previous Facility Office would have been if the assignment,
transfer or change had not occurred.

27.3                     Assignment or
transfer fee

The New Lender shall, on
the date upon which an assignment or transfer takes effect, pay to the Facility
Agent (for its own account) a fee of EUR 1,500 except no such fee shall be
payable in connection with an assignment or transfer to a New Lender upon
primary syndication of the Facilities or upon the assignment or transfer to an
Affiliate of a Lender or a Related Fund.

27.4                     Limitation of
responsibility of Existing Lenders

(a)                                      Unless expressly
agreed to the contrary, an Existing Lender makes no representation or warranty
and assumes no responsibility to a New Lender for:

(i)                        the legality, validity,
effectiveness, adequacy or enforceability of the Finance Documents or any other
documents;

(ii)                     the financial condition of any
Obligor;

(iii)                  the performance and observance by any
Obligor or any other party (other than a Finance Party) of its obligations
under the Finance Documents or any other documents; or

(iv)                 the accuracy of any statements
(whether written or oral) made in or in connection with any Finance Document or
any other document,

and any representations
or warranties implied by law are excluded.

(b)                                     Each New Lender
confirms to the Existing Lender and the other Finance Parties that it:

(i)                        has made (and shall continue to
make) its own independent investigation and assessment of the financial
condition and affairs of each Obligor and its related entities in connection
with its participation in this Agreement and has not relied exclusively on any
information provided to it by the

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Existing Lender or any other Finance Party in connection with any
Finance Document; and

(ii)                     will continue to make its own
independent appraisal of the creditworthiness of each Obligor and its related
entities whilst any amount is or may be outstanding under the Finance Documents
or any Commitment is in force.

(c)                                      Nothing in any
Finance Document obliges an Existing Lender to:

(i)                        accept a re transfer from a New
Lender of any of the rights and obligations assigned or transferred under this
Clause 27; or

(ii)                     support any losses directly or
indirectly incurred by the New Lender by reason of the non performance by any
Obligor of its obligations under the Finance Documents or otherwise.

27.5                     Procedure for
transfer

(a)                                      Subject to the
conditions set out in Clause 27.2 (Conditions
of assignment or transfer) a transfer is effected in accordance with
paragraph (c) below when the Facility Agent executes an otherwise duly
completed Transfer Certificate delivered to it by the Existing Lender and the
New Lender and the Facility Agent makes a corresponding entry in the Register
pursuant to Clause 27.8 (The Register).  The Facility Agent shall, as soon as
reasonably practicable after receipt by it of a duly completed Transfer
Certificate appearing on its face to comply with the terms of this Agreement
and delivered in accordance with the terms of this Agreement, execute that
Transfer Certificate and make such corresponding entry in the Register.

(b)                                     The Facility Agent
shall only be obliged to execute a Transfer Certificate delivered to it by the
Existing Lender and the New Lender and make such corresponding entry in the
Register once it is satisfied it has complied with all necessary “know your customer” or similar other checks under all
applicable laws and regulations in relation to the transfer to such New Lender.

(c)                                      On the Transfer
Date:

(i)                        to the extent that in the
Transfer Certificate the Existing Lender seeks to transfer its rights and
obligations by novation under the Finance Documents each of the Obligors and
any other party to a Finance Document (other than a Finance Party) and the
Existing Lender shall be released from further obligations towards one another
under the Finance Documents and their respective rights against one another
under the Finance Documents shall be cancelled (being the “Discharged
Rights and Obligations”);

(ii)                     each of the Obligors and any other
party to a Finance Document (other than a Finance Party) and the New Lender
shall assume obligations towards one another and/or acquire rights against one
another which

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differ from the Discharged Rights and Obligations only insofar as that
Obligor or other member of the Group and the New Lender have assumed and/or
acquired the same in place of that Obligor and the Existing Lender;

(iii)                  the Facility Agent, the Mandated Lead
Arrangers, the New Lender, the other Lenders, the Issuing Bank and any relevant
Ancillary Lender shall acquire the same rights and assume the same obligations
between themselves and in respect of the Finance Documents as they would have
acquired and assumed had the New Lender been an Original Lender with the
rights, and/or obligations acquired or assumed by it as a result of the
transfer and to that extent the Facility Agent, the Mandated Lead Arrangers,
the Issuing Bank and any relevant Ancillary Lender and the Existing Lender
shall each be released from further obligations to each other under this
Agreement; and

(iv)                 the New Lender shall become a Party as
a “Lender”.

27.6                     Disclosure of
information

(a)                                      Any Lender may
disclose to any of its Affiliates and any other person:

(i)                        to (or through) whom that
Lender assigns or transfers (or may potentially assign or transfer) all or any
of its rights and obligations under the Finance Documents and who has executed
a confidentiality agreement;

(ii)                     with (or through) whom that Lender
enters into (or may potentially enter into) any sub participation in relation
to, or any other transaction under which payments are to be made by reference
to, the Finance Documents or any Obligor and who has executed a confidentiality
agreement; or

(iii)                  to whom, and to the extent that,
information is required to be disclosed by any applicable law or regulation;
and

(b)                                     any Finance Party
may disclose to a rating agency on a confidential basis,

any information about any
Obligor, the Group and the Finance Documents as that Lender shall consider
appropriate.

27.7                     Assignment
to Federal Reserve Bank

Any Lender may at any
time pledge or assign a security interest in all or any portion of its rights
under this Agreement, without notice to or consent of any Party, to any U.S. Federal
Reserve Bank provided that (i) no
Lender shall be relieved of any of its obligations under this Agreement as a
result of any such assignment and pledge and (ii) in no event shall such U.S.
Federal Reserve Bank be considered to be a “Lender” or be entitled to require
the assigning Lender to take or omit to take any action under this Agreement.

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27.8                     The Register

The Facility Agent,
acting solely for this purpose as an agent of the Obligors, shall maintain at
one of its offices a copy of each Transfer Certificate delivered to it and a
register (the “Register”) for the
recordation of the names and addresses of each Lender and the Commitments of
and obligations owing to each Lender. 
Without limitation of any other provision of this Clause 27 (Changes to the Lenders), no transfer or
assignment shall be effective until recorded in the Register.  The entries in the Register shall be
conclusive absent manifest error and each Obligor, the Agent and each Lender
may treat each person whose name is recorded in the Register as a Lender
notwithstanding any notice to the contrary. 
The Register shall be available for inspection by each Obligor at any
reasonable time and from time to time upon reasonable prior notice.

28.                           CHANGES
TO THE OBLIGORS

28.1                     Assignment
and Transfers by Obligors

No Obligor may assign any
of its rights or transfer any of its rights or obligations under the Finance
Documents.

28.2                     Additional
Borrowers

(a)                                      Subject to
compliance with the provisions of paragraphs (c) and (d) of Clause 23.7 (“Know your customer” checks), the Company
may request that any of its wholly owned Subsidiaries becomes an Additional
Borrower.  That Subsidiary shall become
an Additional Borrower if:

(i)                        that Subsidiary is incorporated
in the same jurisdiction as another approved or existing Borrower; or

(ii)                     the Majority Lenders consent to
that Subsidiary becoming a Borrower (such consent not to be unreasonably
withheld) provided that no Lender shall be
required to make any Loan to a Borrower if the making of such Loan is prohibited
by law or regulation applicable to the relevant Lender; and

(iii)                  the Company delivers to the Facility
Agent a duly completed and executed Accession Letter;

(iv)                 the Company confirms that no Default
is continuing or would occur as a result of that Subsidiary becoming an
Additional Borrower; and

(v)                    the Facility Agent has received all
of the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent Required to be Delivered by an
Additional Obligor) in relation to that Additional Borrower, each in
form and substance satisfactory to the Facility Agent (acting reasonably).

(b)                                     The Facility Agent
shall notify the Company and the Lenders promptly upon having received (in form
and substance satisfactory to it (acting reasonably))

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all the documents and other evidence listed
in Part II of Schedule 2 (Conditions
Precedent Required to be Delivered by an Additional Obligor).

28.3                     Resignation
of an Obligor

(a)                                      In this Clause
28.3, “Third Party Disposal” means
the disposal of an Obligor to a person which is not a member of the Group.

(b)                                     Borrowers (other
than Schick Technologies, Inc. and Sirona Dental Systems GmbH) may resign as
Borrowers if no amounts borrowed by such Borrower is outstanding and by
delivering a Resignation Letter to the Facility Agent.

(c)                                      Guarantors (other
than the Company, Schick Technologies, Inc., Sirona Dental Systems GmbH and
Sirona Holding GmbH) may resign by delivering a Resignation Letter to the
Facility Agent and if the Guarantor coverage test in Clause 25.24 (Accounting reference date and auditors)
will continue to be met following such resignation.

(d)                                     The Facility Agent
shall accept a Resignation Letter and notify the Company and the Lenders of its
acceptance if:

(i)                        the Company has confirmed that
no Default is continuing or would result from the acceptance of the Resignation
Letter; and

(ii)                     where the Obligor is:

(A)                a Borrower, it is under no actual or
contingent obligations as a Borrower under any Finance Documents; or

(B)                  a Guarantor, no payment is due from a
Guarantor under Clause 21.1 (Guarantee and Indemnity);
or

(iii)                  where such Obligor is both a Borrower
and a Guarantor the Company has confirmed that either:

(A)                such Obligor is subject to a Third
Party Disposal and its obligations in its capacity as Guarantor continue to be
legal, valid, binding and enforceable and in full force and effect and the
amount guaranteed by it as a Guarantor is not decreased; or

(B)                  each of the conditions set out in
sub-paragraph (d)(ii) applies; and

(e)                                      Upon notification
by the Facility Agent to the Company of its acceptance of the resignation of a
Borrower or a Guarantor, that company shall cease to be a Borrower or a
Guarantor and shall have no further rights or obligations under the Finance
Documents as a Borrower or a Guarantor.

(f)                                        The resignation
of an Obligor which is the subject of a Third Party Disposal shall not be
effective until the date of that disposal whereupon that company shall cease to
be an Obligor and shall have no further rights or obligations under the Finance
Documents as an Obligor.

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28.4                     Guarantors

(a)                                      Subject to
compliance with the provisions of paragraphs (c) and (d) of Clause 23.7 (“Know your customer” checks), the Company
may request that any of its wholly owned Subsidiaries become a Guarantor.

(b)                                     The Company shall
ensure that each member of the Group identified in Clause 25.23 (Guarantors) as a Guarantor shall become a
Guarantor.

(c)                                      A member of the
Group shall become a Guarantor if:

(i)                        the Company delivers to the
Facility Agent a duly completed and executed Accession Letter; and

(ii)                     the Facility Agent has received
all of the documents and other evidence listed in Part II of Schedule 2 (Conditions Precedent Required to be Delivered by an
Additional Obligor) in relation to that Guarantor, each in form and
substance satisfactory to the Facility Agent (acting reasonably).

(d)                                     The Facility Agent
shall notify the Company and the Lenders promptly upon having received (in form
and substance satisfactory to it (acting reasonably)) all the documents and
other evidence listed in Part II of Schedule 2 (Conditions Precedent Required to be Delivered by an Additional Obligor).

(e)                                      The Facility
Agent may (but shall not be obliged to) agree a limit on the amount of the
liability of the potential Guarantor or other changes to the Finance Documents
which in the opinion of the Facility Agent, based on the advice of its legal
counsel, are necessary or advisable to overcome a prohibition referred to in
the Guarantee Principles or a risk that a guarantee by the potential Guarantor
will not be legal, valid, binding, enforceable and effective.  The cost of the advice of legal counsel
obtained pursuant to this paragraph (e) shall be for the account of the
Company.

28.5                     Repetition of
Representations

When delivering an
Accession Letter the relevant Subsidiary shall confirm that the Repeating
Representations are true and correct in relation to it as at the date of
delivery as if made by reference to the facts in all material respects and
circumstances then existing.

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SECTION
10

THE FINANCE PARTIES

29.                           ROLE
OF THE FACILITY AGENT, THE MANDATED LEAD ARRANGERS,
THE ISSUING BANK AND OTHERS

29.1                     Appointment
of the Facility Agent

(a)                                      Each of the
Mandated Lead Arrangers, the Lenders and the Issuing Bank appoints the Facility
Agent to act as its agent under and in connection with the Finance Documents.

(b)                                     Each of the
Mandated Lead Arrangers, the Lenders and the Issuing Bank authorises the
Facility Agent to:

(i)                        exercise the rights, powers,
authorities and discretions specifically given to the Facility Agent under or
in connection with the Finance Documents together with any other incidental
rights, powers, authorities and discretions; and

(ii)                     execute each Finance Document and
any Bank Guarantee expressed to be executed by the Facility Agent on its
behalf.

(c)                                      The Facility
Agent shall be released from the restrictions of Sec 181 of the German Civil
Code.

(d)                                     At the request of
the Facility Agent, the Finance Parties shall grant special powers of attorney
to the Facility Agent.

29.2                     Duties of the
Facility Agent

(a)                                      The Facility
Agent shall promptly forward to a Party the original or a copy of any document
which is delivered to the Facility Agent for that Party by any other Party.

(b)                                     Except where a
Finance Document specifically provides otherwise, the Facility Agent is not
obliged to review or check the adequacy, accuracy or completeness of any
document it forwards to another Party.

(c)                                      If the Facility
Agent receives notice from a Party referring to this Agreement, describing a
Default and stating that the circumstance described is a Default, it shall
promptly notify the other Finance Parties.

(d)                                     If the Facility
Agent is aware of the non payment of any principal, interest, commitment fee or
other fee payable to a Finance Party (other than the Facility Agent, the
Mandated Lead Arrangers under this Agreement it shall promptly notify the other
Finance Parties.

(e)                                      The Facility
Agent’s duties under the Finance Documents are solely mechanical and
administrative in nature.

 121
 

 

29.3                     Role of the
Mandated Lead Arrangers

Except as specifically
provided in the Finance Documents, each Mandated Lead Arranger has no
obligations of any kind to any other Party under or in connection with any
Finance Document.

29.4                     No fiduciary
duties

(a)                                      Nothing in this
Agreement constitutes the Facility Agent, any Mandated Lead Arranger and/or the
Issuing Bank as a trustee or fiduciary of any other person.

(b)                                     The Facility Agent
shall not be bound to account to any Lender for any sum or the profit element
of any sum received by it for its own account.

29.5                     Business
with the Group

The Facility Agent may
accept deposits from, lend money to and generally engage in any kind of banking
or other business with any member of the Group.

29.6                     Rights and
discretions

(a)                                      The Facility
Agent, the Issuing Bank and each Ancillary Lender may rely on:

(i)                        any representation, notice or
document believed by it to be genuine, correct and appropriately authorised;
and

(ii)                     any statement made by a director,
authorised signatory or employee of any person regarding any matters which may
reasonably be assumed to be within his knowledge or within his power to verify.

(b)                                     The Facility Agent
may assume (unless it has received notice to the contrary in its capacity as
agent for the Lenders) that:

(i)                        no Default has occurred (unless
it has actual knowledge of a Default arising under Clause 26.1 (Non payment));

(ii)                     any right, power, authority or
discretion vested in any Party, the Majority Lenders, the Super Majority
Lenders or the Lenders has not been exercised; and

(iii)                  any notice or request made by the
Company is made on behalf of and with the consent and knowledge of all the
Obligors.

(c)                                      The Facility
Agent, the Issuing Bank and each Ancillary Lender may engage, pay for and rely
on the advice or services of any lawyers, accountants, surveyors or other
experts.

(d)                                     The Facility
Agent, the Issuing Bank and each Ancillary Lender may act in relation to the
Finance Documents through its personnel and agents.  The Facility Agent shall not be liable for
the negligence or misconduct of such agents.

 

 122
 

 

(e)                                      The Facility
Agent may disclose to any other Party any information it reasonably believes it
has received as agent under this Agreement.

(f)                                        Notwithstanding
any other provision of any Finance Document to the contrary, none of the
Facility Agent, any Mandated Lead Arranger or the Issuing Bank is obliged to do
or omit to do anything if it would or might in its reasonable opinion
constitute a breach of any law or regulation or a breach of a fiduciary duty or
duty of confidentiality.

(g)                                     Where any Finance
Document specifies a minimum period of notice to be given to the Facility
Agent, the Facility Agent may, at its discretion, accept a shorter period of
notice.

29.7                     Majority
Lenders’ instructions

(a)                                      Unless
a contrary indication appears in a Finance Document, the Facility Agent shall
(a) act in accordance with any instructions given to it by the Majority Lenders
(or, if so instructed by the Majority Lenders, refrain from acting or
exercising any right, power, authority or discretion vested in it as Facility
Agent) and (b) not be liable for any act (or omission) if it acts (or refrains
from taking any action) in accordance with such an instruction of the Majority
Lenders.

(b)                                     Unless
a contrary indication appears in a Finance Document, any instructions given by
the Majority Lenders will be binding on all the Finance Parties.

(c)                                      The
Facility Agent may refrain from acting in accordance with the instructions of
the Majority Lenders (or, if appropriate, the Super Majority Lenders or the
Lenders) until it has received such security as it may require for any cost,
loss or liability (together with any associated VAT) which it may incur in
complying with the instructions.

(d)                                     In
the absence of instructions from the Majority Lenders, (or, if appropriate, the
Super Majority Lenders or the Lenders) the Facility Agent may act (or refrain
from taking action) as it considers to be in the best interest of the Lenders.

(e)                                      The
Facility Agent is not authorised to act on behalf of a Lender (without first
obtaining that Lender’s consent) in any legal or arbitration proceedings
relating to any Finance Document.  This
paragraph (e) shall not apply to any legal or arbitration proceeding relating
to the perfection, preservation or protection of rights under the Finance
Documents.

29.8                     Responsibility
for documentation

None of the
Facility Agent, any Mandated Lead Arranger, the Issuing Bank, or any Ancillary
Lender:

(a)                                      is
responsible for the adequacy, accuracy and/or completeness of any information
(whether oral or written) supplied by the Facility Agent, a Mandated Lead
Arranger, the Issuing Bank, an Ancillary Lender, an Obligor

 

 123

 

or any other person given in or in connection
with any Finance Document or the Information Memorandum or the transactions
contemplated in the Finance Documents; or

(b)                                     is
responsible for the legality, validity, effectiveness, adequacy or
enforceability of any Finance Document or any other agreement, arrangement or
document entered into, made or executed in anticipation of or in connection
with any Finance Document.

29.9                     Exclusion of
liability

(a)                                      Without
limiting paragraph (b) below, none of the Facility Agent, the Issuing Bank or
any Ancillary Lender will be liable for any action taken by it under or in
connection with any Finance Document , unless directly caused by its gross
negligence or wilful misconduct.

(b)                                     No
Party (other than the Facility Agent, the Issuing Bank or an Ancillary Lender
(as applicable)) may take any proceedings against any officer, employee or
agent of the Facility Agent, the Issuing Bank or any Ancillary Lender, in
respect of any claim it might have against the Facility Agent, the Issuing Bank
or an Ancillary Lender or in respect of any act or omission of any kind by that
officer, employee or agent in relation to any Finance Document and any officer,
employee or agent of the Facility Agent, the Issuing Bank or any Ancillary
Lender may rely on this Clause.

(c)                                      The
Facility Agent will not be liable for any delay (or any related consequences)
in crediting an account with an amount required under the Finance Documents to
be paid by the Facility Agent if the Facility Agent has taken all necessary
steps as soon as reasonably practicable to comply with the regulations or
operating procedures of any recognised clearing or settlement system used by
the Facility Agent for that purpose.

29.10               Lenders’ indemnity
to the Facility Agent

Each Lender shall
(in proportion to its share of the Total Commitments or, if the Total
Commitments are then zero, to its share of the Total Commitments immediately
prior to their reduction to zero) indemnify the Facility Agent, within three
Business Days of demand, against any cost, loss or liability incurred by the
Facility Agent (otherwise than by reason of the Facility Agent’s gross
negligence or wilful misconduct) in acting as Facility Agent under the Finance
Documents (unless the Facility Agent has been reimbursed by an Obligor pursuant
to a Finance Document).

29.11               Resignation of the
Facility Agent

(a)                                      The
Facility Agent may resign and appoint one of its Affiliates as successor by
giving notice to the Lenders and the Company.

(b)                                     Alternatively,
the Facility Agent may resign by giving notice to the Lenders and the Company,
in which case the Majority Lenders (after consultation with the Company) may
appoint a successor Facility Agent.

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(c)                                      If
the Majority Lenders have not appointed a successor Facility Agent in accordance
with paragraph (b) above within 30 days after notice of resignation was given,
the Facility Agent (after consultation with the Company) may appoint a
successor Facility Agent.

(d)                                     The
retiring Facility Agent shall, at its own cost, make available to the successor
Facility Agent such documents and records and provide such assistance as the
successor Facility Agent may reasonably request for the purposes of performing
its functions as Facility Agent under the Finance Documents.

(e)                                      The
Facility Agent’s resignation notice shall only take effect upon the appointment
of a successor.

(f)                                        Upon
the appointment of a successor, the retiring Facility Agent shall be discharged
from any further obligation in respect of the Finance Documents but shall
remain entitled to the benefit of this Clause 29.11.  Its successor and each of the other Parties
shall have the same rights and obligations amongst themselves as they would
have had if such successor had been an original Party.

(g)                                     After
consultation with the Company, the Majority Lenders may, by notice to the
Facility Agent, require it to resign in accordance with paragraph (b)
above.  In this event, the Facility Agent
shall resign in accordance with paragraph (b) above.

29.12               Confidentiality

(a)                                      In
acting as agent for the Finance Parties the Facility Agent shall be regarded as
acting through its agency division which shall be treated as a separate entity
from any other of its divisions or departments.

(b)                                     If
information is received by another division or department of the Facility
Agent, it may be treated as confidential to that division or department and the
Facility Agent shall not be deemed to have notice of it.

(c)                                      Notwithstanding
any other provision of any Finance Document to the contrary, none of the
Facility Agent and Mandated Lead Arrangers are obliged to disclose to any other
person (i) any confidential information or (ii) any other information if the
disclosure would or might in its reasonable opinion constitute a breach of any
law or a breach of a fiduciary duty.

29.13               Relationship with the Lenders

(a)                                      The
Facility Agent may treat each Lender as a Lender, entitled to payments under
this Agreement and acting through its Facility Office unless it has received
not less than five Business Days prior notice from that Lender to the contrary
in accordance with the terms of this Agreement.

 

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(b)                                     Each
Lender shall supply the Facility Agent with any information required by the
Facility Agent in order to calculate the Mandatory Cost in accordance with
Schedule 4 (Mandatory Cost Formulae).

29.14               Credit appraisal by
the Finance Parties

Without affecting
the responsibility of any Obligor for information supplied by it or on its
behalf in connection with any Finance Document, each Finance Party confirms to
the Facility Agent, the Mandated Lead Arrangers, the Issuing Bank and each
Ancillary Lender that it has been, and will continue to be, solely responsible
for making its own independent appraisal and investigation of all risks arising
under or in connection with any Finance Document including but not limited to:

(a)                                      the
financial condition, status and nature of each member of the Group;

(b)                                     the
legality, validity, effectiveness, adequacy or enforceability of any Finance
Document and any other agreement, arrangement or document entered into, made or
executed in anticipation of, under or in connection with any Finance Document;

(c)                                      whether
that Finance Party has recourse, and the nature and extent of that recourse,
against any Party or any of its respective assets under or in connection with
any Finance Document the transactions contemplated by the Finance Documents or
any other agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document;

(d)                                     the
adequacy, accuracy and/or completeness of the Information Memorandum, and any
other information provided by the Facility Agent, any other Party or by any
other person under or in connection with any Finance Document, the transactions
contemplated by the Finance Documents or any other agreement, arrangement or
document entered into, made or executed in anticipation of, under or in
connection with any Finance Document.

29.15               Reference Banks

If a Reference
Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an
Affiliate) ceases to be a Lender, the Facility Agent shall (in consultation
with the Company) appoint another Lender or an Affiliate of a Lender (who would
satisfy the definition of “Reference Bank”)
to replace that Reference Bank.

29.16               Deduction from
amounts payable by the Agent

If any Party owes
an amount to the Facility Agent under the Finance Documents the Facility Agent
may, after giving notice to that Party, deduct an amount not exceeding that
amount from any payment to that Party which the Facility Agent would otherwise
be obliged to make under the Finance Documents and apply the amount deducted in
or towards satisfaction of the amount owed. 
For the purposes of the Finance Documents that Party shall be regarded
as having received any amount so deducted.

 

 126
 

 

30.                           CONDUCT OF BUSINESS BY THE FINANCE PARTIES

No provision of
this Agreement will:

(a)                                  interfere
with the right of any Finance Party to arrange its affairs (tax or otherwise)
in whatever manner it thinks fit (subject to its obligations under Clause 19 (Mitigation by the Lenders));

(b)                                 oblige
any Finance Party to investigate or claim any credit, relief, remission or
repayment available to it or the extent, order and manner of any claim; or

(c)                                  oblige
any Finance Party to disclose any information relating to its affairs (tax or
otherwise) or any computations in respect of Tax.

31.                           SHARING
AMONG THE FINANCE PARTIES

31.1                     Payments to
Finance Parties

If a Finance Party
(a “Recovering Finance Party”)
receives or recovers any amount from an Obligor other than in accordance with
Clause 32 (Payment mechanics) and
applies that amount to a payment due under the Finance Documents then:

(a)                                      the
Recovering Finance Party shall, within three Business Days, notify details of
the receipt or recovery to the Facility Agent;

(b)                                     the
Facility Agent shall determine whether the receipt or recovery is in excess of
the amount the Recovering Finance Party would have been paid had the receipt or
recovery been received or made by the Facility Agent and distributed in accordance
with Clause 32 (Payment mechanics),
without taking account of any Tax which would be imposed on the Facility Agent
in relation to the receipt, recovery or distribution; and

(c)                                      the
Recovering Finance Party shall, within three Business Days of demand by the
Facility Agent, pay to the Facility Agent an amount (the “Sharing
Payment”) equal to such receipt or recovery less any amount which
the Facility Agent determines may be retained by the Recovering Finance Party
as its share of any payment to be made, in accordance with Clause 32.5 (Partial payments).

31.2                     Redistribution of payments

The Facility Agent
shall treat the Sharing Payment as if it had been paid by the relevant Obligor
and distribute it between the Finance Parties (other than the Recovering
Finance Party) in accordance with Clause 32.5 (Partial
payments).

31.3                     Recovering
Finance Party’s rights

(a)                                      On
a distribution by the Facility Agent under Clause 31 (Sharing among the Financial Parties), each
Finance Party which has shared in the redistribution shall assign to the
Recovering Finance Party an amount equal to its share of the Sharing Payment.

 

 127
 

 

(b)                                     If
and to the extent that the Recovering Finance Party is not able to rely on its
rights under paragraph (a) above, the relevant Obligor shall be liable to the
Recovering Finance Party for a debt equal to the Sharing Payment which is
immediately due and payable.

31.4                     Reversal of redistribution

If any part of the
Sharing Payment received or recovered by a Recovering Finance Party becomes
repayable and is repaid by that Recovering Finance Party, then:

(a)                                      each
Finance Party which has received a share of the relevant Sharing Payment
pursuant to Clause 31.2 (Redistribution of
payments) shall, upon request of the Facility Agent, pay to the
Facility Agent for account of that Recovering Finance Party an amount equal to
its share of the Sharing Payment (together with an amount as is necessary to
reimburse that Recovering Finance Party for its proportion of any interest on
the Sharing Payment which that Recovering Finance Party is required to pay);
and

(b)                                     that
Recovering Finance Party’s rights of subrogation in respect of any
reimbursement shall be cancelled and the relevant Obligor will be liable to the
reimbursing Finance Party for the amount so reimbursed.

31.5                     Exceptions

(a)                                      This
Clause 31 shall not apply to the extent that the Recovering Finance Party would
not, after making any payment pursuant to this Clause 31.5, have a valid and
enforceable claim against the relevant Obligor.

(b)                                     A
Recovering Finance Party is not obliged to share with any other Finance Party
any amount which the Recovering Finance Party has received or recovered as a
result of taking legal or arbitration proceedings, if:

(i)                        it
notified the other Finance Party of the legal or arbitration proceedings; and

(ii)                     the other
Finance Party had an opportunity to participate in those legal or arbitration
proceedings but did not do so as soon as reasonably practicable having received
notice or did not take separate legal or arbitration proceedings.

31.6                     Commitment
Exchange following acceleration

(a)                                      For
the purposes of this Clause 31.6 :

“Commitment Exchange” means the exchange of
the Lenders’ interests in the Commitments as provided for in paragraph (b)
below.

“Dollar  Equivalent”
shall mean, at any time:

(a)                     with respect
to any amount denominated in dollars, such amount; and

(b)                    with respect
any amounts denominated in any currency other than dollars, the equivalent
amount thereof in dollars as calculated by the

 

 128
 

 

Facility Agent at the Agent’s Spot Rate of Exchange
for the purchase of dollars with such currency.

“Exchange Date” shall mean the first date
after the Closing Date on which there occurs:

(a)                                  any
event or circumstance set out in Clauses 26.6 (Insolvency),
26.7 (Insolvency  proceedings) or 26.8 (Creditors’  process); or

(b)                                 any
action taken by the Facility Agent, or the Facility is automatically
accelerated  pursuant to  Clause 26.18 (Acceleration).

“Commitment Adjustment Percentage” shall
mean, in relation to each Lender, a fraction, expressed as a decimal, of which:

(a)                                  the
numerator shall be the aggregate Dollar Equivalent of the Commitments of such
Lender  immediately prior to the Exchange
Date; and

(b)                                 the
denominator shall be the Dollar Equivalent of the Total Commitments immediately
prior to the Exchange Date.

(b)                                 On
the Exchange Date, (i) the Lenders shall automatically and without further act
be deemed to have exchanged interests in the Facilities such that, in lieu of
the interests of each Lender in each Facility in which it participates as of
such date, each Lender shall own an interest equal to such Lender’s Commitment
Adjustment Percentage in each of Facility A1, Facility A2 and the Revolving
Facility. Each of the Lenders agrees from time to time to execute and deliver
to the  Facility Agent all Transfer
Certificates and documents as the Facility Agent shall reasonably request to
evidence and confirm the respective interests and obligations of the Lenders
after giving effect to the Commitment Exchange, provided that the failure of any
Lender to deliver any such transfer certificate or document shall not affect
the validity or effectiveness of the Commitment Exchange.

 

 129
 

 

SECTION
11

ADMINISTRATION

 

32.                                 PAYMENT MECHANICS

32.1                           Payments to the Facility
Agent

(a)                                  On
each date on which an Obligor or a Lender is required to make a payment under a
Finance Document, that Obligor or Lender shall make the same available to the
Facility Agent (unless a contrary indication appears in a Finance Document) for
value on the due date at the time and in such funds specified by the Facility
Agent as being customary at the time for settlement of transactions in the
relevant currency in the place of payment.

(b)                                 Payment
shall be made to such account in the principal financial centre of the country
of that currency (or, in relation to euro, in a principal financial centre in a
Participating Member State or London) with such bank as the Facility Agent
specifies.

32.2                           Distributions by the
Facility Agent

Each payment received by the Facility Agent under the
Finance Documents for another Party shall, subject to Clauses 32.3 (Distributions to an Obligor) and 32.4 (Clawback) below, be made available by the
Facility Agent as soon as practicable after receipt to the Party entitled to
receive payment in accordance with this Agreement (in the case of a Lender, for
the account of its Facility Office), to such account as that Party may notify
to the Facility Agent by not less than five Business Days’ notice with a bank
in the principal financial centre of the country of that currency (or, in
relation to euro, in the principal financial centre of a Participating Member
State or London).

32.3                           Distributions to an Obligor

The Facility Agent may (with the consent of the
Company or in accordance with Clause 33 (Set
Off)) apply any amount received by it for that Obligor in or towards
payment (on the date and in the currency and funds of receipt) of any amount
due from that Obligor under the Finance Documents or in or towards purchase of
any amount of any currency to be so applied.

32.4                           Clawback

(a)                                  Where
a sum is to be paid to the Facility Agent under the Finance Documents for
another Party, the Facility Agent is not obliged to pay that sum to that other
Party (or to enter into or perform any related exchange contract) until it has
been able to establish to its satisfaction that it has actually received that
sum.

(b)                                 If
the Facility Agent pays an amount to another Party and it proves to be the case
that the Facility Agent had not actually received that amount, then the Party
to whom that amount (or the proceeds of any related exchange contract) was paid
by the Facility Agent shall on demand refund the same to the Facility Agent
together with interest on that amount from the date of payment

 

 130
 

 

to the date of receipt by the Facility Agent,
calculated by the Facility Agent to reflect its cost of funds.

32.5                           Partial payments

(a)                                  If
the Facility Agent receives a payment that is insufficient to discharge all the
amounts then due and payable by an Obligor under the Finance Documents, the
Facility Agent shall apply that payment towards the obligations of that Obligor
under the Finance Documents in the following order:

(i)                                     first, in or towards payment pro rata of any unpaid fees, costs and
expenses of the Facility Agent, the Issuing Bank, the Mandated Lead Arrangers
under the Finance Documents;

(ii)                                  second, in or towards payment pro rata of any accrued interest, fee or
commission due but unpaid under this Agreement and the Ancillary Documents;

(iii)                               third, in or towards payment pro rata of any principal outstandings due
but unpaid under this Agreement and the Ancillary Documents and any amount due
but unpaid under Clause 7.3 (Claims under a
Bank Guarantee) and Clause 7.4 (Indemnities);
and

(iv)                              fourth, in or towards payment pro rata of any other sum due but unpaid
under the Finance Documents.

(b)                                 The
Facility Agent shall, if so directed by the Majority Lenders, vary the order
set out in sub-paragraphs (a)(ii) to (iv) above.

(c)                                  Paragraphs
(a) and (b) above will override any appropriation made by an Obligor.

32.6                           No set off by Obligors

All payments to be made by an Obligor under the
Finance Documents shall be calculated and be made without (and free and clear
of any deduction for) set off or counterclaim, except in respect of claims of
an Obligor which are either undisputed between the relevant Finance Parties and
that Obligor or which have become subject to a final court judgement.

32.7                           Business Days

(a)                                  Any
payment or reduction which is due to be made, or an Interest Period which would
otherwise end, on a day that is not a Business Day shall be made or will end,
as the case may be, on the next Business Day in the same calendar month (if
there is one) or the preceding Business Day (if there is not).

(b)                                 During
any extension of the due date for payment of any principal or an Unpaid Sum
under this Agreement interest is payable on the principal at the rate payable
on the original due date.

 

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32.8                     Currency of
account

(a)                                      Subject
to paragraphs (b) to (f) below, the Base Currency is the currency of account and
payment for any sum due from an Obligor under any Finance Document.

(b)                                     A
repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or Unpaid
Sum shall be made in the currency in which that Utilisation or Unpaid Sum is
denominated on its due date.

(c)                                      Each
payment in respect of a Bank Guarantee (including any cash cover in respect of
a Bank Guarantee) shall be made in the currency in which that Bank Guarantee is
denominated.

(d)                                     Each
payment of interest shall be made in the currency in which the sum in respect
of which the interest is payable was denominated when that interest accrued.

(e)                                      Each
payment in respect of costs, expenses or Taxes shall be made in the currency in
which the costs, expenses or Taxes are incurred.

(f)                                        Any
amount expressed to be payable in a currency other than the Base Currency shall
be paid in that other currency.

32.9                     Change of currency

(a)                                      Unless
otherwise prohibited by law, if more than one currency or currency unit are at
the same time recognised by the central bank of any country as the lawful
currency of that country, then:

(i)                        any
reference in the Finance Documents to, and any obligations arising under the
Finance Documents in, the currency of that country shall be translated into, or
paid in, the currency or currency unit of that country designated by the
Facility Agent (after consultation with the Company); and

(ii)                     any
translation from one currency or currency unit to another shall be at the
official rate of exchange recognised by the central bank for the conversion of
that currency or currency unit into the other, rounded up or down by the
Facility Agent (acting reasonably).

(b)                                     If
a change in any currency of a country occurs, this Agreement will, to the
extent the Facility Agent (acting reasonably and after consultation with the
Company) specifies to be necessary, be amended to comply with any generally
accepted conventions and market practice in the Relevant Interbank Market and
otherwise to reflect the change in currency.

33.                           SET
OFF

After the
occurrence of an Event of Default, a Finance Party may set off any matured
obligation due from an Obligor under the Finance Documents against any
obligation

 

 132
 

 

owed by that
Finance Party to that Obligor, regardless of the place of payment, booking
branch or currency of either obligation. 
If the obligations are in different currencies, the Finance Party may
convert either obligation at a market rate of exchange in its usual course of
business for the purpose of the set off. 
That Finance Party shall promptly notify that Obligor of such set-off or
conversion.

34.                           NOTICES

34.1                     Communications
in writing

Any communication
to be made under or in connection with the Finance Documents shall be made in
writing and, unless otherwise stated, may be made by fax or letter.

34.2                     Addresses

The address and
fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to
be made or delivered under or in connection with the Finance Documents is:

(a)                                      in
the case of an Original Obligor, that identified with its name below;

(b)                                     in
the case of each Lender, the Issuing Bank , each Ancillary Lender or any other
Obligor, that notified in writing to the Facility Agent on or prior to the date
on which it becomes a Party; and

(c)                                      in
the case of the Facility Agent, that identified with its name below,

or any substitute
address, fax number or department or officer as the Party may notify to the
Facility Agent (or the Facility Agent may notify to the other Parties, if a
change is made by the Facility Agent) by not less than five Business Days’
notice.

34.3                     Delivery

(a)                                      Any
communication or document made or delivered by one person to another under or
in connection with the Finance Documents will only be effective:

(i)                        if by way
of fax, when received in legible form; or

(ii)                     if by way of
letter, when it has been left at the relevant address or five Business Days
after being deposited in the post postage prepaid in an envelope addressed to
it at that address,

and, if a particular
department or officer is specified as part of its address details provided
under Clause 34.2 (Addresses), if
addressed to that department or officer.

(b)                                     Any
communication or document to be made or delivered to the Facility Agent will be
effective only when actually received by the Facility Agent and then only if it
is expressly marked for the attention of the department or officer identified
with the Facility Agent’s signature below (or any substitute department or
officer as the Facility Agent shall specify for this purpose).

 

 133
 

 

(c)                                      All
notices from or to an Obligor shall be sent through the Facility Agent.  The Company may make and/or deliver as agent
of each Obligor notices and/or requests on behalf of each Obligor.

(d)                                     Any
communication or document made or delivered to the Company in accordance with
this Clause 34.3 will be deemed to have been made or delivered to each of the
Obligors.

34.4                     Notification of address and fax number

Promptly upon
receipt of notification of an address and fax number or change of address or
fax number pursuant to Clause 34.2 (Addresses)
or changing its own address or fax number, the Facility Agent shall notify the
other Parties.

34.5                     Electronic
communication

(a)                                      Any
communication to be made between the Facility Agent and a Lender under or in
connection with the Finance Documents may be made by electronic mail or other
electronic means, if the Facility Agent and the relevant Lender:

(i)                        agree
that, unless and until notified to the contrary, this is to be an accepted form
of communication;

(ii)                     notify each
other in writing of their electronic mail address and/or any other information
required to enable the sending and receipt of information by that means; and

(iii)                  notify each
other of any change to their address or any other such information supplied by
them.

(b)                                     Any
electronic communication made between the Facility Agent and a Lender will be
effective only when actually received in readable form and in the case of any
electronic communication made by a Lender to the Facility Agent only if it is
addressed in such a manner as the Facility Agent shall specify for this
purpose.

34.6                     English
language

(a)                                      Any
notice given under or in connection with any Finance Document must be in
English.

(b)                                     All
other documents required to be provided under or in connection with any Finance
Document must be:

(i)                        in
English; or

(ii)                     if not in
English, and if so required by the Facility Agent, accompanied by a certified
English translation and, in this case, the English translation will prevail unless
the document is a constitutional, statutory or other official document.

 

 134
 

 

34.7                     Use of
Websites

(a)                                      A
Party (other than a Finance Party) may satisfy its obligation under this
Agreement to deliver any information in relation to those Lenders (the “Website Lenders”) who accept this method of communication by
posting this information onto an electronic website designated by the Company
and the Facility Agent (the “Designated Website”)
if:

(i)                        the
Facility Agent expressly agrees (after consultation with each of the Lenders)
that it will accept communication of the information by this method;

(ii)                     both the
Company and the Facility Agent are aware of the address of and any relevant
password specifications for the Designated Website; and

(iii)                  the information
is in a format previously agreed between the Company and the Facility Agent.

If any Lender (a “Paper Form Lender”) does not agree to the
delivery of information electronically then the Facility Agent shall notify the
Company accordingly and the Company shall supply the information to the
Facility Agent (in sufficient copies for each Paper Form Lender) in paper
form.  In any event the Company shall
supply the Facility Agent with at least one copy in paper form of any information
required to be provided by it.

(b)                                     The
Facility Agent shall supply each Website Lender with the address of and any
relevant password specifications for the Designated Website following
designation of that website by the Company and the Facility Agent.

(c)                                      The
Company shall promptly upon becoming aware of its occurrence notify the
Facility Agent if:

(i)                        the
Designated Website cannot be accessed due to technical failure;

(ii)                     the password
specifications for the Designated Website change;

(iii)                  any new
information which is required to be provided under this Agreement is posted
onto the Designated Website;

(iv)                 any existing
information which has been provided under this Agreement and posted onto the
Designated Website is amended; or

(v)                    the Company
becomes aware that the Designated Website or any information posted onto the
Designated Website is or has been infected by any electronic virus or similar
software.

If the Company
notifies the Facility Agent under sub-paragraphs (c)(i) or (c)(v) above, all
information to be provided by the Company under this Agreement after the date
of that notice shall be supplied in paper form unless

 

 135
 

 

and until the
Facility Agent and each Website Lender is satisfied that the circumstances
giving rise to the notification are no longer continuing.

(d)                                     Any
Website Lender may request, through the Facility Agent, one paper copy of any
information required to be provided under this Agreement which is posted onto
the Designated Website. The Company shall comply with any such request within
ten Business Days.

35.                           CALCULATIONS
AND CERTIFICATES

35.1                     Accounts

In any litigation
or arbitration proceedings arising out of or in connection with a Finance
Document, the entries made in the accounts maintained by a Finance Party are
prima facie evidence of the matters to which they relate.

35.2                     Certificates
and Determinations

Any certification
or determination by a Finance Party of a rate or amount under any Finance
Document and by a Issuing Bank as to the amount paid out by that Issuing Bank
in respect of any Bank Guarantee is, in the absence of manifest error,
conclusive evidence of the matters to which it relates.

35.3                     Day count convention

Any interest,
commission or fee accruing under a Finance Document will accrue from day to day
and is calculated on the basis of the actual number of days elapsed and a year
of 360 days or, in any case where the practice in the Relevant Interbank Market
differs, in accordance with that market practice.

36.                           PARTIAL
INVALIDITY

If, at any time,
any provision of the Finance Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.  The illegal, invalid or unenforceable
provision shall be deemed replaced by such provision reflecting the same
commercial intent of the parties which provision shall be legal, valid and
enforceable in the relevant jurisdiction.

37.                           REMEDIES
AND WAIVERS

No failure to
exercise, nor any delay in exercising, on the part of any Finance Party or
Finance Party, any right or remedy under the Finance Documents shall operate as
a waiver, nor shall any single or partial exercise of any right or remedy
prevent any further or other exercise or the exercise of any other right or
remedy.  The rights and remedies provided
in this Agreement are cumulative and not exclusive of any rights or remedies
provided by law.

 

 136
 

 

38.                           AMENDMENTS
AND WAIVERS

38.1                     Required
consents

(a)                                      Subject
to Clause 38.2 (Exceptions) any
term of the Finance Documents may be amended or waived only with the consent of
the Majority Lenders (save that amendments in any Finance Document which are
solely required to give effect to an act or circumstance which is permitted by
the Finance Documents may be made by the Facility Agent without reference to
the Majority Lenders) and the Company and any such amendment or waiver will be
binding on all Parties.

(b)                                     The
Facility Agent may effect, on behalf of any Finance Party, any amendment or
waiver permitted by this Clause 38.

(c)                                      The
Company may effect, as agent of each member of the Group, any amendment or
waiver permitted by this Clause 38.  For
this purpose, the Company is released from the restrictions of Section 181 of
the German Civil Code.

38.2                     Exceptions

(a)                                      An
amendment or waiver that has the effect of changing or which relates to:

(i)                        the manner
in which the proceeds of enforcement of a guarantee are distributed to the
Lenders;

(ii)                     any provision
which expressly requires the consent of the Super-Majority Lenders;

(iii)                  a change to the
Guarantors other than in accordance with Clause 28 (Changes to the Obligors);

(iv)                 a change to the
Borrowers other than in accordance with Clause 28 (Changes to the Obligors);

shall not be made
without the prior consent of the Super Majority Lenders.

(b)                                     An
amendment or waiver that has the effect of changing or which relates to:

(i)                        any
extension to the date of payment of any amount under the Finance Documents due
to a Lender (other than in respect of prepayments of disposal proceeds under
Clause 11.9 (Disposal Proceeds)
which shall require only the consent of the Majority Lenders;

(ii)                     any increase
in, or an extension of, any Commitment of a Lender;

(iii)                  any addition of
any Commitment from a new Lender;

(iv)                 a reduction in
the Margin or a reduction in the amount of any payment of principal, interest,
fees or commission payable to a Lender;

 

 137
 

 

(v)                    a change in
currency of payment of any amount under the Finance Documents,

shall not be made
without the prior consent of the Majority Lender including all of the directly
affected Lenders.

(c)                                      An
amendment or waiver that has the effect of changing or which relates to:

(i)                        the
definition of “Majority Lenders” or “Super Majority Lenders” in Clause 1.1 (Definitions);

(ii)                     Clause 2.4 (Finance Parties Rights and Obligations),
Clause 27 (Changes to the Lenders)
or this Clause 38; or

(iii)                  any provision
which expressly requires the consent of all the Lenders,

shall not be made
without the prior consent of all the Lenders.

(d)                                     An
amendment or waiver that has the effect of changing or which relates to the
redenomination into another currency of any Commitment of a Lender shall not be
made without the prior consent of such Lender.

(e)                                      Any
increase in the Commitments by way of a person who is not a Lender as at the
date immediately prior to such increase agreeing to become a Lender shall
require the consent of the Majority Lenders only.

(f)                                        An
amendment or waiver which relates to the rights or obligations of the Facility
Agent, the Mandated Lead Arrangers, the Issuing Bank, or any Ancillary Lender
may not be effected without the consent of the Facility Agent, the Mandated
Lead Arrangers, the Issuing Bank or the Ancillary Lenders at such time.

38.3                     Deemed
Response

If a Lender does
not respond to a request from the Company for an amendment or waiver to consent
within 10 Business Days (or, upon the Facility Agent requesting, due to the
complexity or materiality of the matters concerned, 15 Business Days or such
longer period agreed by the Facility Agent and the Company) such Lender shall
be deemed to have voted in favour of the relevant request.

38.4                     Replacement
of Lender

(a)                                      If
at any time:

(i)                        any Lender
becomes a Non-Consenting Lender (as defined in paragraph (c) below); or

(ii)                     an Obligor
becomes obliged to repay any amount in accordance with Clause 11.1 (Illegality of a Lender) or to pay
additional amounts pursuant to Clause 16.2 (Tax
gross-up) or Clause 17 (Increased
Costs) to any Lender in excess of amounts payable to the other
Lenders generally,

 

 138
 

 

then the Company
may, on 5 Business Days prior written notice to the Facility Agent and such
Lender, replace such Lender by requiring such Lender to (and such Lender shall)
transfer pursuant to Clause 27 (Changes to
the Lenders) all (and not part only) of its rights and obligations
under this Agreement to a Lender or other bank or financial institution (a “Replacement Lender”) selected by the
Company, and which is acceptable to the Facility Agent (acting reasonably) and
(in the case of any transfer of a Revolving Commitment) the Issuing Bank, which
confirms its willingness to assume and does assume all the obligations of the
transferring Lender (including the assumption of the transferring Lender’s
participations on the same basis as the transferring Lender) for a purchase
price in cash payable at the time of transfer equal to the outstanding
principal amount of such Lender’s participation in the outstanding Loans and/or
Bank Guarantees and all accrued interest (and any breakage costs) and fees and
other amounts payable thereunder.

(b)                                     The
replacement of a Lender pursuant to this Clause shall be subject to the
following conditions:

(i)                        the
Company shall have no right to replace the Facility Agent in its role as such;

(ii)                     neither the
Facility Agent nor the Lender to be replaced under this Clause shall have any
obligation to the Company to find a Replacement Lender;

(iii)                  in the event of
a replacement of a Non-Consenting Lender such replacement must take place no
later than 90 days after the date the Non-Consenting Lender notified the
Company and the Facility Agent of its failure or refusal to agree to any
consent, waiver or amendment to the Finance Documents requested by the Company;
and

(iv)                 in no event shall
the Lender to be replaced under this Clause be required to pay or surrender to
such Replacement Lender any of the fees received by such Lender pursuant to the
Finance Documents.

(c)                                      If:

(i)                        the
Company or the Facility Agent (at the request of the Company) has requested the
Lenders to consent to a waiver or amendment of any provisions of the Finance
Documents;

(ii)                     the waiver or
amendment in question requires the consent of all the Lenders or all the
Lenders in a particular Facility or the Super Majority Lenders; and

(iii)                  the Majority
Lenders (or the Majority Lenders on the basis only of the particular Facility
concerned) have consented to such waiver or amendment,

 

 139
 

 

then any Lender
who does not and continues not to agree to such waiver or amendment shall be
deemed to be a “Non-Consenting Lender”.

39.                           COUNTERPARTS

Each Finance
Document may be executed in any number of counterparts, and this has the same
effect as if the signatures on the counterparts were on a single copy of the
Finance Document.

40.                           USA
PATRIOT ACT

Each Lender hereby
notifies each Obligor that pursuant to the requirements of the USA Patriot Act,
such Lender is required to obtain, verify and record information that
identifies such Obligor, which information includes the name and address of
such Obligor and other information that will allow such Lender to identify such
Obligor in accordance with the USA Patriot Act.

 

 140
 

 

SECTION 12

GOVERNING LAW AND ENFORCEMENT

41.                           GOVERNING
LAW

This Agreement is
governed by English law.

42.                           ENFORCEMENT

42.1                     Jurisdiction
of English Courts

(a)                                      The
courts of England have exclusive jurisdiction to settle any dispute arising out
of or in connection with this Agreement (including a dispute regarding the
existence, validity or termination of this Agreement) (a “Dispute”).

(b)                                     The
Parties agree that the courts of England are the most appropriate and
convenient courts to settle Disputes and accordingly no Party will argue to the
contrary.

(c)                                      This
Clause 42.1 is for the benefit of the Finance Parties and Finance Parties
only.  As a result, no Finance Party or
Finance Party shall be prevented from taking proceedings relating to a Dispute
in any other courts with jurisdiction. 
To the extent allowed by law, the Finance Parties and Finance Parties
may take concurrent proceedings in any number of jurisdictions.

42.2                     Service of
process

Without prejudice
to any other mode of service allowed under any relevant law, each Obligor
(other than an Obligor incorporated in England):

(a)                                      irrevocably
appoints Law Debenture Corporate Services Ltd. or such other person as such
Obligor may notify to the Facility Agent as its agent for service of process in
relation to any proceedings before the English courts in connection with any
Finance Document; and

(b)                                     agrees
that failure by a process agent to notify the relevant Obligor of the process
will not invalidate the proceedings concerned.

43.                           WAIVER
OF JURY TRIAL

EACH
OF THE PARTIES TO THIS AGREEMENT AGREES TO WAIVE IRREVOCABLY ITS RIGHTS TO A
JURY TRIAL OF ANY CLAIM BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF
THE DOCUMENTS REFERRED TO IN THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED IN
THIS AGREEMENT.  This
waiver is intended to apply to all Disputes. 
Each party acknowledges that (a) this waiver is a material inducement to
enter into this Agreement, (b) it has already relied on this waiver in entering
into this Agreement and (c) it will continue to rely on this waiver in future
dealings.  Each party represents that it
has reviewed this waiver with its legal advisers and that it knowingly and
voluntarily waives its jury trial rights after consultation with its legal
advisers.  In the event of litigation,
this Agreement may be filed as a written consent to a trial by the court.

 

 141
 

 

This Agreement has
been entered into on the date stated at the beginning of this Agreement.

 

 142
 

 

SCHEDULE 1

The Original Lender

	
  Original Lender

  	
   

  	
  Facility A1

  Commitment

  	
   

  	
  Facility A2

  Commitment

  	
   

  	
  Revolving

  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  USD

  	
   

  	
  Euro

  	
   

  	
  USD

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JPMorgan Chase
  Bank, N.A.

  	
   

  	
  75,000,000

  	
   

  	
  137,500,000

  	
   

  	
  75,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS Limited

  	
   

  	
  75,000,000

  	
   

  	
  137,500,000

  	
   

  	
  75,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  150,000,000

  	
   

  	
  275,000,000

  	
   

  	
  150,000,000

  	
   

  

 

 143
 

 

SCHEDULE 2

CONDITIONS PRECEDENT

Part I

Conditions Precedent to Delivery of a Utilisation Request

1.                                 Obligors

(a)                                      A
copy of the constitutional documents of each party (other than a Finance Party)
to a Finance Document, including for any company whose Relevant Jurisdiction is
Germany officially certified, recent and up-to-date commercial register
extracts (beglaubigter Handelsregisterauszug)
and articles of association or, in the case of partnerships, uncertified,
recent and up-to-date partnership agreements.

(b)                                     A
copy of a resolution of the board of directors and/or shareholders resolution
of each party to a Finance Document (other than a Finance Party):

(i)                        approving
the terms of, and the transactions contemplated by, the Finance Documents to
which it is a party and resolving that it execute the Finance Documents to
which it is a party;

(i)                        authorising
a specified person or persons to execute the Finance Documents to which it is a
party on its behalf; and

(ii)                     authorising
a specified person or persons, on its behalf, to sign and/or despatch all
documents and notices (including, if relevant, any Utilisation Request and
Selection Notice) to be signed and/or despatched by it under or in connection
with the Finance Documents to which it is a party.

(c)                                      A
specimen of the signature of each person authorised by the resolution referred
to in paragraph (b) above in relation to the Finance Documents.

(d)                                     A
certificate of an authorised signatory of the relevant party certifying that
each copy document relating to it specified in this Part I of Schedule 2 is
correct, complete and in full force and effect as at a date no earlier than the
date of this Agreement.

(e)                                      A
copy of a good standing certificate (including to the extent available
verification of franchise or similar tax status) with respect to each U.S.
Obligor, issued as of a recent date by the Secretary of State or other
appropriate official of each U.S. Obligor’s jurisdiction of incorporation or
organisation.

2.                                 Finance Documents

(a)                                      This
Agreement executed by the members of the Group party to this Agreement.

 

 144
 

 

(b)                                     The
Fee Letters executed by the Company.

(c)                                      A
copy of the Funds Flow Statement.

3.                                 Other Documents and Evidence

(a)                                      Evidence
of compliance with all of the Facility Agent’s customary “know your customer”
or similar checks under all applicable laws and regulations.

(b)                                     Acceptance
of service of process in relation to any proceedings before the English courts
in connection with any Finance Document.

(c)                                      The
Structure Memorandum in a form agreed by the Company and the Facility Agent
(acting reasonably) and the reliance letter related thereto detailing the
proposed movement of funds on and before the Closing Date.

(d)                                     The
Business Plan.

(e)                                      A
certificate of the Chief Financial Officer of each U.S. Obligor stating that
the respective company is Solvent after giving effect to the initial Loans, the
application of the proceeds of the Loans in accordance with Clause 3 and the
payment of all estimated legal, accounting and other fees related to this
Agreement and the consummation of the other transactions contemplated by this
Agreement.  For purposes of this
certificate, “Solvent” means with respect to such U.S. Obligor on any date of
determination that (a) the fair value of the property of such person is greater
than the total amount of liabilities (including contingent and unliquidated
liabilities) of such person; (b) the present fair saleable value of the assets
of such person is not less than the amount which will be required to pay the
probable liability of such person on its debts as they become absolute and
mature; (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 unreasonably small capital.  In computing the amount of contingent or
unliquidated liabilities at any time, such liabilities will be computed at the
amount which, in light of all the facts and circumstances existing at such
time, represents the amount that can reasonably be expected to become an actual
and matured liability.

 

 145
 

 

Part IA
 Conditions Precedent to Drawdown

 

1.                                 Finance Documents

An executed copy of the Subordination Agreement.

2.                                 Legal Opinions

The following
legal opinions, each addressed to the Facility Agent and the Lenders.

(a)                                      A
legal opinion of Clifford Chance LLP, legal advisers to the Mandated Lead
Arranger and the Facility Agent as to English law.

(b)                                     A
legal opinion of Clifford Chance Partnerschaftgesellschaft, legal advisers to
the Mandated Lead Arranger and the Facility Agent as to German law.

(c)                                      A
legal opinion of Kirkland and Ellis legal advisors to the Company as to US law.

3.                                 Other Documents and Evidence

(a)                                      A
letter addressed to the Company from the facility agents under the Existing
Senior Facility Agreement and the Existing Mezzanine Facility Agreement
confirming that any Financial Indebtedness outstanding under the Existing
Senior Facility Agreement and/or the Existing Mezzanine Facility Agreement will
be discharged in full immediately upon the Closing Date, it being understood
that the signed version of such letter will be available on the date of the
first Utilisation and immediately prior thereto, but will be held in escrow
until the Closing Date has occurred.

(b)                                     Evidence
of payment of fees, costs and expenses (to be deducted from drawdown, subject
to delivery and agreement being reach in relation to invoices for costs and
expenses).

(c)                                      Delivery
of a Utilisation Request.

 

 146
 

 

Part II

Conditions Precedent required to be delivered by an Additional Obligor

1.                                 An
Accession Letter executed by the Additional Obligor and the Company.

2.                                 A
copy of the constitutional documents of the Additional Obligor.

4.                                 A
copy of a good standing certificate (including to the extent available
verification of franchise or similar tax status) with respect to each
Additional Obligor whose jurisdiction of organization is a state of the U.S. or
the District of Columbia, issued as of a recent date by the Secretary of State
or other appropriate official of such Additional Obligor’s jurisdiction of
incorporation or organisation.

3.                                 A
copy of a resolution of the board of directors and/or shareholders of the
Additional Obligor:

(a)                                      approving
the terms of, and the transactions contemplated by, the Accession Letter and
the Finance Documents and resolving that it execute the Accession Letter and
any other Finance Document to which it is a party;

(b)                                     authorising
a specified person or persons to execute the Accession Letter and other Finance
Documents on its behalf; and

(c)                                      authorising
a specified person or persons, on its behalf, to sign and/or despatch all other
documents and notices (including, in relation to an Additional Borrower, any
Utilisation Request or Selection Notice) to be signed and/or despatched by it
under or in connection with the Finance Documents to which it is a party; and

(d)                                     authorising
the Company to act as its agent in connection with the Finance Documents.

5.                                 A
specimen of the signature of each person authorised by the resolution referred
to in paragraph 3 above.

6.                                 With
respect to any Additional Obligor whose Relevant Jurisdiction is not Germany, a
certificate of the Additional Obligor (signed by a director or other authorised
signatory) confirming that borrowing or guaranteeing or securing, as
appropriate, the Total Commitments would not cause any borrowing, guarantee,
security or similar limit binding on it to be exceeded.

7.                                 A
certificate of an authorised signatory of the Additional Obligor certifying
that each copy document listed in this Part II of Schedule 2 is correct,
complete and in full force and effect as at a date no earlier than the date of
the Accession Letter.

8.                                 The
latest financial statements of the Additional Obligor, audited, if available.

9.                                 The
following legal opinions on the Accession Letter, each addressed to the
Facility Agent and the Lenders:

 

 147
 

 

(a)                                      A
legal opinion of the legal advisers to the Facility Agent in England, as to
English law in the form distributed to the Facility Agent prior to signing the
Accession Letter.

(b)                                     If
the Additional Obligor is incorporated in a jurisdiction other than England or
executing a Finance Document which is governed by a law other than English law,
a legal opinion of the legal advisers to the Facility Agent in the jurisdiction
of incorporation of that Additional Obligor or, as the case may be, the
jurisdiction of the governing law of that Finance Document (the “Relevant Jurisdiction”) as to the law of
the Relevant Jurisdiction and in the form distributed to the Facility Agent
prior to signing the Accession Letter.

(c)                                      A
legal opinion of [•], legal advisers to the Additional Obligor on matters of
U.S. law, substantially in the form distributed to the Lenders prior to signing
the Accession Letter.

10.                           If the
proposed Additional Obligor is incorporated in a jurisdiction other than
England, evidence that the process agent specified in Clause 42.2 (Service of process), if not the Company,
has accepted its appointment in relation to the proposed Additional Obligor.

11.                           An
accession memorandum to the Subordination Agreement executed by the Additional
Obligor.

12.

(a)                                      If
the Additional Obligor is incorporated in England and Wales or Scotland:

(i)                        Either
a letter from the Company to the Facility Agent (attaching supporting evidence
from the Company’s English Solicitors) confirming that the Additional Obligor
is not prohibited by Section 151 of the Companies Act 1985 from entering into
the Finance Documents; and/or

(ii)                     evidence
that the Additional Obligor has done all that is necessary (including, without
limitation, by re registering as a private company) to follow the procedures
set out in Sections 151 to 158 of the Companies Act 1985 in order to enable
that Additional Obligor to enter into the Finance Documents and perform its
obligations under the Finance Documents. 
The following documentary evidence shall be supplied: a copy of the
statutory declarations and annexed auditors reports, board resolutions,
shareholders resolutions (if applicable), a certificate of that Additional
Obligor listing all directors at the time the statutory declarations are made
and a non statutory comfort letter from its auditors regarding its net asset
position.  The copy documents shall be
certified by an authorised signatory of the Additional Obligor as correct,
complete and in full force and effect at a date no earlier than the date of the
Accession Letter.

(b)                                     If
the Additional Obligor is not incorporated in any country other England and
Wales, such documentary evidence as legal counsel to the Facility Agent may

 

 148
 

 

require, that such
Additional Obligor has complied with any law in its jurisdiction relating to
financial assistance or analogous process.

13.                           A copy
of any other Authorisation or other document, opinion or assurance which the
Facility Agent considers to be necessary in connection with the entry into and
performance of the transactions contemplated by the Accession Letter and each
Finance Document to which the Additional Obligor is a party or for the validity
and enforceability of any Finance Document created or intended to be created by
the Additional Obligor.

14.                           A
certificate of the Chief Financial Officer of each Additional Obligor whose
jurisdiction of organisation is a state of the U.S. or the District of Columbia
stating that the respective company is Solvent after giving effect to the
initial Loans, the application of the proceeds of the Loans in accordance with
Clause 3 and the payment of all estimated legal, accounting and other fees
related to this Agreement and the consummation of the other transactions
contemplated by this Agreement.  For
purposes of this certificate, “Solvent”
means with respect to such Additional Obligor on any date of determination that
(a) the fair value of the property of such person is greater than the total
amount of liabilities (including contingent and unliquidated liabilities) of
such person; (b) the present fair saleable value of the assets of such person
is not less than the amount which will be required to pay the probably
liability of such person on its debts as they become absolute and mature; (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 unreasonably small capital.  In computing the amount of contingent or unliquidated
liabilities at any time, such liabilities will be computed at the amount which,
in light of all the facts and circumstances existing at such time, represents
the amount that can reasonably be expected to become an actual and matured
liability.

 

 149
 

 

SCHEDULE 3

REQUESTS

Part IA

Utilisation Request

Loans

From:      [Borrower]

To:          [Facility
Agent]

Dated:

Dear Sirs

[Company] — [•] Senior Facilities
Agreement

dated [•] (the “Facilities Agreement”)

1.                                 [We
wish a Loan to be made on the following terms:

	
   

  	
  (a)

  	
  Borrower:

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Proposed Utilisation Date:

  	
  [•] (or, if that is not a Business Day, the next
  Business Day)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Facility to be utilised:

  	
  [Facility A1]/[Facility A2] [Revolving Facility]]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Currency of Loan:

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  Amount:

  	
  [•] or, if less, the Available Facility:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  Interest Period:

  	
  [•]

  

 

2.                                 We
confirm on behalf of each Obligor and the Company that each condition specified
in Clause 4.2 (Further Conditions Precedent)
[in conjunction with Clause 4.3 (Certain
Funds)] * is satisfied on the date of this Utilisation Request.

3.                                 [The
proceeds of this Loan should be credited to [account]].

4.                                 This
Utilisation Request is irrevocable.

5.                                 Terms
used in this Request which are not defined in this Request but are defined in
the Facilities Agreement shall have the meaning given to those terms in the
Facilities Agreement.

Yours faithfully

.......................................

[insert name of
Borrower]

*              To be used for first Utilisation

 

 150
 

 

Part IB

Utilisation Request

Bank Guarantees

From:      [Borrower]

To:          [Facility
Agent]

Dated:

Dear Sirs

[Company]   [•] Senior Facilities Agreement

dated [•] (the “Facilities
Agreement”)

1.                                 We
wish to arrange for a Bank Guarantee to be [issued]/[renewed] by the Issuing
Bank on the following terms:

	
   

  	
  (a)

  	
  Borrower:

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Proposed Utilisation Date:

  	
  [•] (or, if that is not a Business Day, the next
  Business Day)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Facility to be utilised:

  	
  Revolving Facility

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d)

  	
  Currency of Bank Guarantee:

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (e)

  	
  Amount:

  	
  [•] or, if less, the Available Facility in relation
  to the Revolving Facility:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (f)

  	
  Expiry Date

  	
  [•]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (g)

  	
  Term:

  	
  [•]

  

 

2.                                 We
confirm that each condition specified in paragraph (c) of Clause 6.5 (Issue of Bank Guarantees) is satisfied on
the date of this Utilisation Request.

3.                                 We
attach a copy of the proposed Bank Guarantee.

4.                                 This
Utilisation Request is irrevocable.

5.                                 Terms
used in this Request which are not defined in this Request but are defined in
the Facilities Agreement shall have the meaning given to those terms in the
Facilities Agreement.

....................................

authorised signatory for

[insert name of
Relevant Borrower]

 

 151
 

 

Part II

Selection Notice

Applicable to a Term Loan

From:      [Borrower]

To:          [Facility
Agent]

Dated:

Dear Sirs

[Company]   [•] Senior Facilities Agreement

dated [•] (the “Facilities
Agreement”)

1.                                 We
refer to the following Facility [A1]/[A2] Loan[s] with an Interest Period
ending on [         ].

2.                                 [We
request that the above Facility A1 Loan[s] be divided into [•] Facility A1
Loans with the following Base Currency Amounts and Interest Periods:]

or

[We request that
the above Facility A2 Loan[s] be divided into [•] Facility A2 Loans with the
following Base Currency Amounts and Interest Periods:]

or

[We request that
the next Interest Period for the above Facility [A1]/[A2] Loan[s] is
[       ]].

3.                                 This
Selection Notice is irrevocable.

4.                                 Terms
used in this Selection Notice which are not defined in this Selection Notice
but are defined in the Facilities Agreement shall have the meaning given to those
terms in the Facilities Agreement.

Yours faithfully

.....................................

authorised signatory for

[insert name of Relevant Borrower]

 152

 

SCHEDULE
4

MANDATORY COST FORMULAE

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

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

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

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

(a)                                      in
relation to a sterling Loan:

	
  AB + C(B-D) + E   ́  0.01

  	
   per cent. per annum

  
	
  100-(A +
  C)

  

 

(b)                                     in
relation to a Loan in any currency other than sterling:

	
  E   ́  0.01

  	
   per cent. per annum

  
	
  300

  

 

Where:

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

B                                 is
the percentage rate of interest (excluding the Margin and the Mandatory Cost
and, if the Loan is an Unpaid Sum, the additional rate of interest specified in
Clause 12.4 (Default interest))
payable for the relevant Interest Period on the Loan.

 

 153
 

 

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

D                                is
the percentage rate per annum payable by the Bank of England to the Facility
Agent on interest bearing Special Deposits.

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

5.                                 For
the purposes of this Schedule:

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

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

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

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

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

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

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

(a)                                      the
jurisdiction of its Facility Office; and

 

 154
 

 

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

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

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

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

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

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

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

 

 155
 

 

SCHEDULE
5

FORM OF TRANSFER CERTIFICATE

To:        [•] as Facility Agent

From:            [The Existing Lender] (the “Existing Lender”) and [The New Lender] (the
“New Lender”)

Dated:

[Company]
— [•] Senior Facilities Agreement

dated [•] (the “Facilities Agreement”)

1.                                 We
refer to Clause 27.5 (Procedure for transfer):

(a)                                      The
Existing Lender and the New Lender agree to the Existing Lender transferring to
the New Lender by assignment and transfer by novation all or part of the
Existing Lender’s Commitment, rights and obligations referred to in the
Schedule in accordance with Clause 27.5 (Procedure
for transfer).

(b)                                     The
proposed Transfer Date is
[           ].

(c)                                      The
Facility Office and address, fax number and attention details for notices of
the New Lender for the purposes of Clause 34.2 (Addresses) are set out in the Schedule.

2.                                 The
New Lender expressly acknowledges the limitations on the Existing Lender’s
obligations set out in paragraph (c) of Clause 27.4 (Limitation of responsibility of Existing Lenders).

3.                                 This
Transfer Certificate is governed by English law.

4.                                 Terms
which are used in this Transfer Certificate which are not defined in this
Transfer Certificate but are defined in the Facilities Agreement shall have the
meaning given to those terms in the Facilities Agreement.

 

 156
 

 

THE
SCHEDULE

Commitment/rights
and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number and attention
details for notices and account details for payments,]

	
  [Existing Lender]

  	
  [New Lender]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

This Transfer Certificate
is accepted by the Facility Agent and the Transfer Date is confirmed as
[           ].

[Facility Agent]

By:

 

 157
 

 

SCHEDULE
6

FORM OF ACCESSION LETTER

To:        [•]
as Facility Agent

From:    [Subsidiary]
and [the Company]

Dated:

Dear Sirs

[Company]
— [•] Senior Facilities Agreement

dated [•] (the “Facilities Agreement”)

1.                                 [Subsidiary] agrees to become an Additional
[Borrower]/[Guarantor] and to be bound by the terms of the Facilities
Agreement, the Subordination Agreement and the other Finance Documents as an
Additional [Borrower]/[Guarantor] pursuant to Clause [28.2 (Additional Borrowers)]/[Clause 28.4 (Guarantors)] of the Facility Agreement
[and as an [Obligor] pursuant to clause [•] of the Subordination Agreement]. [Subsidiary] is a company duly incorporated
under the laws of [name of relevant
jurisdiction] and is a limited liability company and registered
number [•].

2.                                 [Subsidiary’s] administrative details are
as follows:

Address:

Fax No.:

Attention:

3.                                 [The
Company confirms that no Default is continuing or would occur as a result of a
[Subsidiary] becoming an additional Borrower.]*

4.                                 [Subsidiary
confirms that the representations and warranties referred to in Clause 22 (Representations) are true and correct.]**

5.                                 This
letter is governed by English law.

6.                                 Terms
which are used in this Accession Letter which are not defined in this Accession
Letter but are defined in the Facilities Agreement shall have the meaning given
to those terms in the Facilities Agreement.

[Company]        [Subsidiary]

NOTES:

*            Insert if Accession Letter is for an Additional Borrower.

**         Insert if Accession Letter is from a Guarantor.

 

 158
 

 

SCHEDULE 7

FORM OF RESIGNATION LETTER

To:        [•] as Facility Agent

From:    [resigning
Obligor] and [Company]

Dated:

Dear Sirs

[Company]   [•] Senior Facilities Agreement

dated [•] (the “Facilities Agreement”)

1.                                 Pursuant
to [Clause 28.3 (Resignation of an Obligor)],
we request that [resigning Obligor] be released from its obligations as a
[Borrower]/[Guarantor] under the Facilities Agreement, the Subordination
Agreement and the Finance Documents.

2.                                 We
confirm that:

(a)                                      no
Default is continuing or would result from the acceptance of this request; and

(b)                                     [this
request is given in relation to a disposal of [resigning
Obligor];]

(c)                                      [the
Disposal Proceeds have been or will be applied in accordance with Clause 11.9 (Disposal proceeds);]

(d)                                     [•]

3.                                 This
letter is governed by English law.

4.                                 Terms
which are used in this resignation letter which are not defined in this letter
but are defined in the Facilities Agreement shall have the meaning given to
those terms in the Facilities Agreement.

5.                                 The
Company agrees to indemnify the Finance Parties for any costs, expenses, or
liabilities which would have been payable by [resigning
Obligor] in connection with the Finance Documents but for the
release set out in paragraph 1 above.

	
  [Company]

  	
  [resigning Obligor]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

NOTES:

*                                   Amend
as appropriate, e.g. to reflect agreed procedure for payment of proceeds into a
specified account.

**         Insert any other conditions required by the Facilities
Agreement.

 

 159
 

 

SCHEDULE
8

FORM OF COMPLIANCE CERTIFICATE

To:        [•] as Facility Agent

From:    [Company]

Dated:

Dear Sirs

[Company]   [•] Senior Facilities Agreement

dated [•] (the “Facilities Agreement”)

1.                                 We
refer to the Facilities Agreement.  This
is a Compliance Certificate.

2.                                 We
confirm that:

(a)                                      in
respect of the Relevant Period ending on [•] Consolidated Total Net Debt for
such Relevant Period was [•] and Consolidated Adjusted EBITDA for such Relevant
Period on [•].  Therefore Consolidated
Total Net Debt for such Relevant Period was [•] times Consolidated Adjusted
EBITDA for such Relevant Period and the covenant contained in paragraph (a) of
Clause 24.2 (Financial condition)
[has/has not] been complied with;

(b)                                     On
the last day of the Relevant Period ending on [•] Cash Interest Costs was [•]
and Consolidated Adjusted EBITDA for such Relevant Period was [•]. Therefore
Cash Interest Costs at such time [did/did not] exceed [•] times Consolidated
Adjusted EBITDA for such Relevant Period and the covenant contained in
paragraph (b) of Clause 24.2 (Financial
Condition) [has/has not] been complied with;

(c)                                      On
the last day of the Relevant Period ending on [•] Consolidated Total Net Debt
was [•] and Consolidated Adjusted EBITDA for such Relevant Period was [•].  Therefore Consolidated Total Net Debt at that
time was [greater than or equal to [•] times Consolidated Adjusted EBITDA for
such Relevant Period]/[less than [•] times Consolidated Adjusted EBITDA for
such Relevant Period but greater than or equal to [•] times Consolidated
Adjusted EBITDA for such Relevant Period]/[less than [•] times Consolidated
Adjusted EBITDA for such Relevant Period]

and accordingly
the Margin will be:

Facility A1
Margin:                          [•] %
p.a.

Facility A2
Margin:                          [•] %
p.a.

Revolving Facility
Margin:             [•] % p.a.

3.                                 [We
confirm that no Default is continuing.]*

 

 160
 

 

4.                                 [We
confirm that the following companies constitute Material Subsidiaries for the
purposes of the Facility Agreement: [•].]

[We confirm that the
[aggregate of the earnings before interest, tax, depreciation and amortisation
(calculated on the same basis as Consolidated Adjusted EBITDA) of the
Guarantors,]/[the aggregate Gross Assets (including (by reference to the Group’s
reporting requirements under the Facilities Agreement), restricted short term
investments, accounts receivable, net inventories, prepaid expenses and other
non-current assets (but not intangible assets))] of the Guarantors (in each
case calculated on an unconsolidated basis and excluding all intra group items)
represents not less than [•] per cent of [Consolidated Adjusted
EBITDA,]/[consolidated Gross Assets of the Group].

	
  Signed

  	
  . . . . . . . . . . . . . . . . . . . . . . .

  	
   . . . . . . . . . . . . . . . . . . . . . . . . . .

  
	
   

  	
   

  	
   

  
	
   

  	
  Director

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  of

  	
  of

  
	
   

  	
   

  	
   

  
	
   

  	
  [Company]

  	
  [Company]

  

 

NOTES:

*                    If
this statement cannot be made, the certificate should identify any Default that
is continuing and the steps, if any, being taken to remedy it.

 

 161
 

 

SCHEDULE
9

TIMETABLES

Part I

Loans

	
   

  	
   

  	
  Loans in euro

  	
   

  	
  Loans in dollars

  	
   

  	
  Loans in other

  currencies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent notifies the Company if a currency is
  approved as an Optional Currency in accordance with Clause 4.4 (Conditions relating to Optional Currencies)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  U 4

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Delivery of a duly completed Utilisation Request
  (Clause 5.1 (Delivery of a
  Utilisation Request)) or a Selection Notice (Clause 13.1 (Selection of Interest Periods and Terms))

  	
   

  	
  U 3

  9.30am

  	
   

  	
  U 3

  9.30am

  	
   

  	
  U 3

  9.30am

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent determines (in relation to a
  Utilisation) the Base Currency Amount of the Loan, if required under Clause
  5.4 (Lenders’ participation)

  	
   

  	
  U 3

  Noon

  	
   

  	
  U 3

  noon

  	
   

  	
  U 3

  noon

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent notifies the Lenders of the Loan in
  accordance with Clause 5.4 (Lenders’
  participation)

  	
   

  	
  U 3

  3.00pm

  	
   

  	
  U 3

  3.00pm

  	
   

  	
  U 3

  3.00pm

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent receives a notification from a Lender
  under Clause 8.2 (Unavailability of
  a currency)

  	
   

  	
  U 3

  5.00pm

  	
   

  	
  U 3

  5.00pm

  	
   

  	
  U 3

  5.00pm

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent gives notice in accordance with
  Clause 8.2 (Unavailability of a
  currency)

  	
   

  	
  U 2

  9.30am

  	
   

  	
  U 2

  9.30am

  	
   

  	
  U 2

  9.30am

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 162
 

 

	
   

  	
   

  	
  Loans in euro

  	
   

  	
  Loans in dollars

  	
   

  	
  Loans in other

  currencies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Facility Agent determines amount of the Loan in
  Optional Currency in accordance with Clause 32.9 (Change of currency)

  	
   

  	
  U 3

  11.00am

  	
   

  	
  U 3

  11.00am

  	
   

  	
  U 3

  11.00am

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR or EURIBOR is fixed

  	
   

  	
  Quotation Day as of 11:00 Brussels time in respect
  of EURIBOR

  	
   

  	
  Quotation Day as of 11:00 a.m.

  	
   

  	
  Quotation Day as of 11:00 a.m.

  

 

“U”       =            date of utilisation

“U   X” =            X
Business Days prior to date of utilisation

 

 163
 

 

Part II

Bank Guarantees

	
   

  	
   

  	
  Bank
  Guarantees

  
	
  Delivery of a duly completed Utilisation Request
  (Clause 6.2 (Delivery of a
  Utilisation Request for Bank Guarantees)

  	
   

  	
  U 3 9.30am

  
	
  Facility Agent determines (in relation to a Utilisation)
  the Base Currency Amount of the Bank Guarantee if required under paragraph
  (e) of Clause 6.5 (Issue of Bank
  Guarantees) and notifies the Issuing Bank and Lenders of the Bank
  Guarantee in accordance with paragraph (e) of Clause 6.5 (Issue of Bank Guarantees).

  	
   

  	
  U 1 noon

  

 

“U”       =            date of utilisation

“U X”   =            Business Days prior to date of
utilisation

 

 164
 

 

SCHEDULE
10

FORM OF LETTER OF CREDIT

To:        [Beneficiary](the
“Beneficiary”)

Date

Irrevocable
Standby Letter of Credit no. [•]

At the request of [•], [Issuing Bank] (the “Issuing Bank”) issues this irrevocable
standby Letter of Credit (“Letter of Credit”)
in your favour on the following terms and conditions:

1.                                 Definitions

In this Letter of Credit:

“Business Day” means a day (other than a
Saturday or a Sunday) on which banks are open for general business in
[London].*

“Demand” means a demand for a payment under
this Letter of Credit in the form of the schedule to this Letter of Credit.

“Expiry Date” means [•].

“Total Letter of Credit Amount” means [•].

2.                                 Issuing Bank’s agreement

(a)                                      The
Beneficiary may request a drawing or drawings under this Letter of Credit by
giving to the Issuing Bank a duly completed Demand.  A Demand must be received by the Issuing Bank
by [•] p.m. ([London] time) on the Expiry Date.

(b)                                     Subject
to the terms of this Letter of Credit, the Issuing Bank unconditionally and
irrevocably undertakes to the Beneficiary that, within [ten] Business Days of
receipt by it of a Demand, it must pay to the Beneficiary the amount demanded
in that Demand.

(c)                                      The
Issuing Bank will not be obliged to make a payment under this Letter of Credit
if as a result the aggregate of all payments made by it under this Letter of
Credit would exceed the Total Letter of Credit Amount.

3.                                 Expiry

(a)                                      The
Issuing Bank will be released from its obligations under this Letter of Credit
on the date (if any) notified by the Beneficiary to the Issuing Bank as the
date upon which the obligations of the Issuing Bank under this Letter of Credit
are released.

(b)                                     Unless
previously released under paragraph (a) above, on [•] p.m.([London] time) on
the Expiry Date the obligations of the Issuing Bank under this Letter

 

 165
 

 

of Credit will cease with
no further liability on the part of the Issuing Bank except for any Demand
validly presented under the Letter of Credit that remains unpaid.

(c)                                      When
the Issuing Bank is no longer under any further obligations under this Letter
of Credit, the Beneficiary must return the original of this Letter of Credit to
the Issuing Bank.

4.                                 Payments

All payments under this
Letter of Credit shall be made in [•] and for value on the due date to the
account of the Beneficiary specified in the Demand.

5.                                 Delivery of Demand

Each Demand shall be in
writing, and, unless otherwise stated, may be made by letter, fax or telex and
must be received in legible form by the Issuing Bank at its address and by the
particular department or office (if any) as follows:

[

                                                   ]

6.                                 Assignment

The Beneficiary’s rights
under this Letter of Credit may not be assigned or transferred.

7.                                 Governing Law

This Letter of Credit is
governed by English law.

8.                                 Jurisdiction

The courts of England
have exclusive jurisdiction to settle any dispute arising out of or in
connection with this Letter of Credit.

Yours faithfully

[Issuing Bank]

By:

NOTES:

*                    This
may need to be amended depending on the currency of payment under the Letter of
Credit.

 

 166
 

 

SCHEDULE

Form of Demand

To:        [ISSUING BANK]

[Date]

Dear Sirs

Standby
Letter of Credit no. [•] issued in favour of [BENEFICIARY] (the “Letter of
Credit”)

We refer to the Letter of
Credit.  Terms defined in the Letter of
Credit have the same meaning when used in this Demand.

1.                                 We
certify that the sum of [•] is due [and has remained unpaid for at least [•]
Business Days] [under [set out underlying contract or agreement]].  We therefore demand payment of the sum of
[•].

2.                                 Payment
should be made to the following account:

Name:

Account Number:

Bank:

3.                                 The
date of this Demand is not later than the Expiry Date.

Yours faithfully

	
  (Authorised Signatory)

  	
  (Authorised Signatory)

  

 

For

[BENEFICIARY]

 

 167
 

 

SCHEDULE
11

GUARANTEE PRINCIPLES

1.                                 AGREED GUARANTEE PRINCIPLES

The guarantees to be
provided under the Finance Documents will be given in accordance with certain
agreed Guarantee Principles (the “Agreed
Guarantee Principles”). This Schedule addresses the manner in which
the Agreed Guarantee Principles will impact on the guarantees to be taken in
relation to this transaction.

The Finance Parties and
the Obligors have agreed and acknowledged that their rights and obligations
under the Finance Documents in respect of (i) the giving or taking of
guarantees; (ii) all the rights and obligations associated with such giving or
taking of guarantees shall be subject to and limited by the Agreed Guarantee
Principles. The Agreed Guarantee Principles embody the recognition by all
parties that there may be certain legal and practical difficulties in obtaining
effective guarantees from all members of the Group in every jurisdiction in
which members of the Group are located. 
In particular:

(a)                                      general
statutory limitations, financial assistance, capital maintenance, corporate
benefit, fraudulent preference, thin capitalisation, retention of title claims
and similar principles may limit the ability of a member of the Group to
provide a guarantee or may require that the guarantee be limited by an amount
or otherwise. If any such limit applies, the guarantees provided will be
limited to the maximum amount which the relevant member of the Group may
provide having regard to applicable law (including any jurisprudence) and
subject to fiduciary duties of management;

(b)                                     in
particular, German capital maintenance rules will require that upstream /
cross-stream guarantees given by any German company incorporated as a GmbH or
GmbH &Co. KG be limited, in order to avoid any liability of the management
or the shareholders which may arise from such an upstream or cross-stream
guarantee (other than, in relation to the shareholders only, any recourse
claims);

(c)                                      the
giving of a guarantee, will not be required to the extent that it would incur
any legal fees, registration fees, stamp duty, taxes and any other fees or
costs directly associated with such guarantee which are disproportionate to the
benefit obtained by the Finance Parties;

(d)                                     in
certain jurisdictions it may be either impossible or impractical to grant
guarantees in which event such guarantees will not be granted;

(e)                                      members
of the Group will not be required to give guarantees if it is not within the
legal capacity of the relevant members of the Group or if, in the reasonable
opinion of the directors of the relevant members of the Group, the same would
conflict with the fiduciary duties of those directors or contravene any legal prohibition
or result in personal or criminal liability on the part of

 

 168
 

 

any officer or result in
any significant risk of legal liability for the directors of any Group company;

(f)                                        no
perfection action will be required in jurisdictions where a Guarantor is not
located;

(g)                                     the
terms of the guarantee should not be such that, in the reasonable opinion of
management of the relevant member of the Group, they materially restrict the
running of the business of or materially adversely affect the tax arrangements
of the relevant member of the Group in the ordinary course as otherwise
permitted by the Finance Documents.

2.                                 GUARANTORS

Save as provided in “Guarantors” (see page 3), each guarantee
will be an upstream, cross-stream and downstream guarantee for all liabilities
of the Borrowers under the Finance Documents in accordance with, and subject
to, the requirements of the Agreed Guarantee Principles in each relevant
jurisdiction.

3.                                 GERMAN GUARANTEE LIMITATIONS

(a)                                      If
and to the extent that:

(i)                        a
guarantee granted under the Facility Agreement secures any Loans, (i) which are
made to a corporation, or (ii) which are deemed to be made to a corporation
according to Section 8a paragraph 5 sentence 2 German Corporation Income Tax
Act (Körperschaftsteuergesetz),
and which corporation is subject to German corporation income tax, (such Loans
being defined as a “German Loans”
and such corporation being defined as “German
Borrower”); and

(ii)                     the relevant
Guarantor granting such guarantee either (i) qualifies as a major shareholder (wesentlicher Anteilseigner) within the
meaning of Section 8a of the German Income Corporation Tax Act (Körperschaftssteuergesetz) of such German
Borrower or (ii) as an affiliated party within the meaning of Section 1
paragraph 2 of the German Foreign Trade Tax Act (Aussensteuergesetz) of such a major shareholder of such
German Borrower,

such guarantee (or any
enforceable judgment based thereon) shall not be enforced against assets of the
relevant Guarantor which qualify as LTIBR(s) if and to the extent such LTIBR(s)
are (i) encumbered in favour of any of the Finance Parties pursuant to a lien
arising under the general business terms (AGB-Pfandrecht)
of such Finance Party, (ii) the subject of a disposal restriction (Verfügungsbeschränkung) or (iii) subject
to enforcement pursuant to a submission to immediate foreclosure in the entire
property (Unterwerfung unter die sofortige
Zwangsvollstreckung in das gesamte Vermögen) of the relevant
Guarantor;

 

 169
 

 

“LTIBR” means any long term interest-bearing
receivables as set out in the decrees of the German Federal Ministry of Finance
(Bundesfinanzministerium) of 15
July 2004 (IV A2-S 2742a-20/04), paragraphs 20 and 37, and of 22 July 2005
(IV-B7-S2742a-31/05), or as set out in any future law, administrative decree, guideline
or other pronouncement which overrules the aforementioned decrees,

(b)                                     The
Facility Agent and each of the Lenders individually undertake to deliver to
each German Borrower as soon as reasonably practicable after the Facilities
have been made available to such German Borrower a complete letter in the form
of the sample back-to-back certificate as published by the German Federal
Ministry of Finance (Bundesfinanzministerium)
on 20 October 2005 (IV B7 — S2742a — 43/05), or in the form of any successor
sample form as may be required by the German tax authorities (the “Certificate”).  The Facility Agent (acting on behalf of the
Lenders) shall send to the relevant German Borrower an updated Certificate as
soon as reasonably practicable (1) upon any amendment to the Facilities or
change in the Securities Interests granted in relation to the Facilities, (2)
if so required by the relevant German Borrower for tax purposes. If the German
tax authorities will not accept a certificate issued by the Facility Agent each
Lender will issue a certificate individually. Reasonable costs of obtaining the
certificates will be reimbursed by the German Borrower.

4.                                 LIMITATION ON PAYMENT OBLIGATIONS OF A GERMAN OBLIGOR

(a)                                      The
Lenders’ right to claim and/or enforce any payment obligation under or in
connection with the Finance Documents (other than a payment obligation of the
German Obligor (as defined below) or of any direct or indirect subsidiary of
the German Obligor under the Term Facilities or the Revolving Facility made available
to the German Obligor or such subsidiary) against an obligor organised as a
company with limited liability (GmbH) (the “German
Obligor”) shall at all times be limited to the extent that the
enforcement would otherwise lead to the situation that the German Obligor did
not have sufficient net assets (Reinvermögen)
(calculated in accordance with the jurisprudence from time to time of the
German Federal Supreme Count (Bundesgerichtshof)
or absent such jurisprudence, the jurisprudence of the Higher Regional Court (Oberlandesgericht) or Regional Courts (Landgericht) in the district of the
relevant German Obligor, relating to protection of liable capital under
sections 30 and 31 of the German Limited Liability Companies Act (GmbH-Gesetz)) to maintain its stated share
capital (Stammkapital) or
increase an existing shortage of the stated share capital, provided that for the purposes of the
calculation of the enforceable amount (if any) the following balance sheet
items shall be adjusted as follows:

(i)                        The amount
of any increase of stated share capital (Stammkapital)
of the German Obligor that has been effected after the date hereof shall be
deducted from the stated share capital unless such increase is required

 

 170
 

 

by law or envisaged in the Structure Memorandum, or
(y) matched by a corresponding increase in the net assets of the relevant
Obligor, or (z) made with the consent
of the Facility Agent (such consent not to be unreasonably withheld).
For the avoidance of doubt, increasing the capital reserves (Rücklagen) as referred to in Section 266
para. 3, items II. and III. of the German Commercial Code (Handelsgesetzbuch — HGB) of any German
Guarantor shall not be restricted (and shall not require any adjustments to the
stated share capital) by virtue of this paragraph;

(iii)                  Any amount of
mandatory reserves (Rücklagen)
resulting from a decrease of registered share capital (Kapitalherabsetzung) and any amount of
public subsidies (Subventionen und andere
öffentliche Beihilfen) received after the date hereof which are
subject to an unfulfilled commitment as to their use shall be added to the
registered share capital;

(iv)                 Loans provided
after the date hereof to the German Obligor, insofar such loans qualify as
equity under the applicable accounting principles and which do not have to be
shown as liabilities on the German Obligor’s balance sheet, shall be
disregarded;

(v)                    To the extent
the enforcement of the guarantee would deprive the German Obligor of the
ability to fulfil its obligations to third parties (incurred, whether on a
contingent or non-contingent basis, at the time of enforcement or to continue
its business, then, for the determination of net assets, the assets of the
German Obligor shall be calculated at the lesser of their book value (Buchwert) and their realisation value
assuming a negative prognosis for the business continuance (Liquidationswert bei negativer Fortführungsprognose);

(vi)                 Loans and other
contractual liabilities incurred by the German Obligor in violation of the
provisions of any of the Finance Documents shall be disregarded to the extent
such violation can be attributed to wilful misconduct of the managing director
(Geschäftsführer) of the German
Obligor.

(b)                                     the
limitations set out in paragraph (a) above only apply if and to the extent that:

(i)                        within 20
business days following the receipt of the notice of the Facility Agent (acting
on behalf of the Lenders) of its intention to claim and/or enforce any payment
obligation against any German Obligor (the “Envisaged
Enforcement Date”), the managing directors on behalf of the German
Obligor have confirmed in writing to the Facility Agent (i) to what extent the
payment obligation relates to primary liability which is an up-stream or
cross-stream liability as described in paragraph (a)

 

 171
 

and (ii) which amount of
such up-stream and/or cross-stream liability cannot be enforced as it would
exceed the Net Assets of the German Obligor and such confirmation is supported
by conclusive evidence satisfactory to the Facility Agent, including in
particular, pro forma interim financial statements as of the Envisaged
Enforcement Date (the “Management
Determination”) and the Facility Agent has not contested the
Management Determination; or

 

(ii)                     within 40
business days from the date the facility agent (acting on behalf of the finance
parties) has contested the management determination the facility agent receives
a determination by auditors of international standard and reputation (the “Auditor’s Determination”) appointed by the
German obligor of the amount of the net assets on the envisaged enforcement
date;

(c)                                      if
the Facility Agent disagrees with the Auditor’s Determination, it shall be
entitled to further pursue their claims and/or rights (if any) under the
dispute solutions agreed upon and, in particular, to contest the Auditor’s
Determination in court and the German Obligor shall be entitled to prove that
this amount is necessary for maintaining its stated share capital (calculated
as of the date the demand for payment and/or enforcement was made);

(d)                                     the
German Obligor shall use reasonable efforts to realize any and all of its
assets that are shown in the balance sheet with a book value (Buchwert) that is significantly lower than
the market value of the assets, or are not recorded at all in a situation where
the German Obligor does not have sufficient Net Assets to maintain its
registered share capital, provided that
the relevant assets are in the reasonable opinion of the German Obligor not
required for the business of the German Obligor (nicht betriebsnotwendiges Vermögen);

(e)                                      the
Lenders’ right to claim and/or enforce this Guarantee shall be excluded at all,
or exist only to a limited amount, if the German Obligor delivers within the
Envisaged Enforcement Date a legal opinion issued by a law firm of international
standard and reputation with German qualified lawyers (Rechtsanwälte) which:

(i)                        comes to
the conclusion that the German Obligor complying with its obligations under any
of the finance documents has exposed and/or would expose (based on legal literature
which is (in the view of the lawyer giving the opinion) widely accepted among
German lawyers and/or court decisions issued after the date of this
agreement  in relation to the relevant
issues which present the risk of liability as materially greater than the risk
of liability as presented by legal literature and/or court decisions current on
the date of this agreement) the managing directors of the German obligor (or
its shareholder’s or an affiliated company’s managing directors, officers or
board members) or an

 

 172
 

 

affiliated company (verbundenes
unternehmen) to a significant risk of civil or criminal liability;
and

(ii)                     specifies the
maximum amount to which the payment and/or enforcement of any claims under or
in connection with the finance documents shall be limited to prevent the
circumstances referred to in the sub-paragraph immediately above from arising;

(f)                                        if
the Facility Agent (acting on behalf of the Lenders) disagrees with the
conclusions of the abovementioned legal opinion, the Facility Agent shall be
entitled to further pursue its claims and/or rights (if any) under the dispute
solutions agreed upon and, in particular, to contest the conclusions of the
legal opinion (and therefore the limitations on the guarantees) in court, and
the German Obligor shall be entitled to prove what limitations under the
relevant guarantees are necessary to prevent the managing directors of the
German Obligor (or its shareholder’s or an affiliated company’s managing
directors, officers or board members) or an affiliated company to become
subject to civil or criminal liability and the conclusions of such dispute
resolution processes shall (subject to any rights of appeal) be effective
between the parties (i.e., the limitations on the relevant guarantees shall be
adjusted to reflect the conclusions of such dispute resolution processes.

(g)                                     The
limitations set out in paragraphs (a) to (f) above shall apply mutatis mutandis
to an Obligor organised under German law as a limited partnership (Kommanditgesellschaft) in respect to its
general partner if such general partner is organised as a GmbH.

5.                                 GUARANTEES GOVERNED BY ANY LAW OTHER THAN GERMAN LAW

The aforesaid provisions
apply to all security irrespective of their governing law. However, where under
any applicable law other than German law the aforesaid provisions are
inappropriate, the provisions shall be replaced by such appropriate provision
under any applicable law which comes as close as possible to the inappropriate
provision.

 

 173
 

 

SCHEDULE
12

CERTAIN FUNDS DEFAULTS

(a)                            Failure
by an Obligor to deliver each of the documents set out in Schedule 2 Part I (Conditions Precedent to Delivery of a Utilisation
Request) or Part IA (Conditions
Precedent to Drawdown) to be provided by it.

(b)                           Any
Event of Default under Clause 26.9 (Unlawfulness
and invalidity) as a result of any event or circumstance arising
after the date hereof (including change of law), provided that in such circumstances the relevant parties shall
do all things and execute all documents required to enter into legally valid
agreements achieving substantially the same or commercially and legally
equivalent results as reflects the position immediately before such event or
circumstance which caused such Event of Default and a Certain Funds Default
shall only occur if after 20 Business Days after such event or circumstance
first arising the Lenders, acting reasonably and having made all reasonable
commercial efforts, have not been able to execute documents which achieve such
substantially the same or commercially and legally equivalent results.

(c)                            Any
Event of Default under Clause 25.11 (Negative
pledge) or Clause 25.17 (Financial
Indebtedness) or Clause 25.7 (Acquisitions).

(d)                           Any
material breach of the representations and warranties in Clause 22.1 (Status) and Clause 22.4 (Power and authority) in relation to a
Borrower.

(e)                            Any
Default under Clause 26.1 (Non-Payment).

(f)                              Any
Event of Default described in Clause 26.6 (Insolvency)
or 26.7 (Insolvency Proceedings)
in relation to a Borrower.

 

 174
 

 

SCHEDULE
13

OVERVIEW LOANS AND SECURITIES SUBSIDIARIES

	
  Sirona Dental Systems, Inc.

  	
   

  	
  Balance
 Actual 30.09.06

  	
   

  	
  Balance
 Estimate 24.11.06

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona Dental Systems LLC, USA

  	
   

  	
  USD

  	
   

  	
  4,686,596.70

  	
   

  	
  USD

  	
   

  	
  4,686,596.70

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EUR

  	
   

  	
  13.699.263,31

  	
   

  	
  EUR

  	
   

  	
  23.699.263,31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal amount

  	
   

  	
  EUR

  	
   

  	
  13.699.263,31

  	
   

  	
  EUR

  	
   

  	
  13.699.263,31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona
  Holding GmbH

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona
  Dental Systems Ltd., UK

  	
   

  	
  EUR

  	
   

  	
  792,187.81

  	
   

  	
  EUR

  	
   

  	
  792,187.81

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal amount

  	
   

  	
  EUR

  	
   

  	
  792,187.81

  	
   

  	
  EUR

  	
   

  	
  792,187.81

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona Dental
  Systems GmbH

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ATR
  Advanced Technology Research, Italien

  	
   

  	
  EUR

  	
   

  	
  335,261.06

  	
   

  	
  EUR

  	
   

  	
  435,261.06

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona
  Dental Systems SAS, Frankreich

  	
   

  	
  EUR

  	
   

  	
  926,299.86

  	
   

  	
  EUR

  	
   

  	
  2926,299.862

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nitram
  Dental a/s, Dänemark

  	
   

  	
  EUR

  	
   

  	
  691,154.51

  	
   

  	
  EUR

  	
   

  	
  691,154.51

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona
  Dental Systems KK, Japan

  	
   

  	
  EUR

  	
   

  	
  24,768,508.72

  	
   

  	
  EUR

  	
   

  	
  24,768,508.72

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona
  Equipos Dentales Iberica S.A., Spanien

  	
   

  	
  EUR

  	
   

  	
  24,438,888.82

  	
   

  	
  EUR

  	
   

  	
  24,438,888.82

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona
  Dental Systems Foshan, China

  	
   

  	
  EUR

  	
   

  	
  20.00

  	
   

  	
  EUR

  	
   

  	
  20.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona
  Dental Systems Shanghai, China

  	
   

  	
  EUR

  	
   

  	
  0.00

  	
   

  	
  EUR

  	
   

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona
  Immobilien GmbH

  	
   

  	
  EUR

  	
   

  	
  1,222,462.87

  	
   

  	
  EUR

  	
   

  	
  1,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SiCat

  	
   

  	
  EUR

  	
   

  	
  1,324,235.46

  	
   

  	
  EUR

  	
   

  	
  1,534,235.46

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal amount

  	
   

  	
  EUR

  	
   

  	
  13,706,831.30

  	
   

  	
  EUR

  	
   

  	
  14,194,368.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona
  International Holding GmbH

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sirona, Australien

  	
   

  	
  EUR

  	
   

  	
  21,660,620.20

  	
   

  	
  EUR

  	
   

  	
  21,660,620.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal amount

  	
   

  	
  EUR

  	
   

  	
  1,660,620.20

  	
   

  	
  EUR

  	
   

  	
  1,660,620.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Securities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Overdraft/Leasing
  Japan (JPY 140,000,000.00)

  	
   

  	
  EUR

  	
   

  	
  1,000,000.00

  	
   

  	
  EUR

  	
   

  	
  1,000,000.00

  	
   

  
	
  Leasing
  France

  	
   

  	
  EUR

  	
   

  	
  150,000.00

  	
   

  	
  EUR

  	
   

  	
  150,000.00

  	
   

  
	
  Overdraft
  China (USD 900,000.00)

  	
   

  	
  EUR

  	
   

  	
  750,000.00

  	
   

  	
  EUR

  	
   

  	
  750,000.00

  	
   

  
	
  Overdraft
  Australia (AUD 1,000,000.00)

  	
   

  	
  EUR

  	
   

  	
  650,000.00

  	
   

  	
  EUR

  	
   

  	
  650,000.00

  	
   

  
	
  Spain
  guarantee

  	
   

  	
  EUR

  	
   

  	
  180,000.00

  	
   

  	
  EUR

  	
   

  	
  180,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Subtotal amount

  	
   

  	
  EUR

  	
   

  	
  2,730,000.00

  	
   

  	
  EUR

  	
   

  	
  2,730,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total amount
  relevant for § [ ]

  	
   

  	
  EUR

  	
   

  	
  18,889,619.31

  	
   

  	
  EUR

  	
   

  	
  19,377,176.44

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  541149
  Sirona Immobilien GmbH

  	
   

  	
  EUR

  	
   

  	
  15,628,446.77

  	
   

  	
  EUR

  	
   

  	
  15,628,446.77

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EUR

  	
   

  	
  34,518,066.08

  	
   

  	
  EUR

  	
   

  	
  35,005,623.21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

2            Valuated at exchange-rate of
30.09.06 (1 Euro = 1,2669 USD)

3                   Does not include securities

 

 175
 

 

SCHEDULE 14

FORM OF CERTIFICATE

	
  [To be sent by

  	
   

  	
  [Von]

  
	
  [Facility Agent]
  

  	
   

  	
  [Facility Agent]

  
	
   

  	
   

  	
   

  
	
  [on behalf of
  each of] 

  	
   

  	
  [jeweils namens und in Vollmacht der] 

  
	
   

  	
   

  	
   

  
	
  [Lenders]

  	
   

  	
  [•] (“Darlehensgeber”)

  
	
   

  	
   

  	
   

  
	
  to

  	
   

  	
  an

  
	
  [German
  Borrower]

  	
   

  	
  [jeweiligen Darlehensnehmer] 

  
	
   

  	
   

  	
  (“Darlehensnehmer”)

  
	
   

  	
   

  	
   

  
	
  Certification
  for presentation to the Tax Office for the purposes of Section 8a of
  Germany’s Corporation Tax Law

  	
   

  	
  Bescheinigung zur Vorlage beim 

  Finanzamt für Zwecke des § 8a KStG

  
	
   

  	
   

  	
   

  
	
  You have asked
  the [relevant Lender] (“Lenders”)
  to issue a Certification for presentation to the Tax Office for the purposes
  of the Corporation Tax Law.

  	
   

  	
  Sie hatten [den jeweiligen Darlehensgeber] gebeten,
  zur Vorlage beim Finanzamt für Zwecke des § 8a KStG eine Bescheinigung
  auszustellen.

  
	
   

  	
   

  	
   

  
	
  We hereby
  declare that regarding the [Senior Facilities Agreement] of [•] in the amount
  of EUR [•] (“Loan”) to [German
  Borrower] (“Borrower”),

  	
   

  	
  Wir, die Darlehensgeber, haben an Sie, den
  Darlehensnehmer, gemäß dem Vertrag vom [•] (“Vertrag”) ein Darlehen (Betrag Euro [•]) gewährt (“Darlehen”).

  
	
   

  	
   

  	
   

  
	
  The following
  securities have been granted by persons other than the Borrower:

  	
   

  	
  Hierzu erklären wir, dass uns bezüglich des
  Darlehens die nachfolgend aufgeführten Sicherheiten von anderen Personen als
  dem Darlehensnehmer gewährt wurden:

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Security
  in rem

  	
   

  	
  1.

  	
  Dingliche Sicherheiten

  
	
   

  	
   

  	
   

  
	
  Pledges / Liens
  (e.g. of deposits)

  	
   

  	
  Pfandrechte (z.B. an Einlagen)

  
	
   

  	
   

  	
   

  
	
  Assignments
  (e.g. assignments of receivables)

  	
   

  	
  Sicherungsabtretungen (z. B. Einzelabtretung von
  Forderungen)

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Personal
  security (e.g. surety, guarantee, assumption of debt)

  	
   

  	
  2.

  	
  Personalsicherheiten (z.B. Bürgschaft, Garantie,
  Schuldmitübernahme)

  
	
   

  	
   

  	
   

  	
   

  
	
  linked
  with the following:

  	
   

  	
  verbunden mit folgenden/r:

  
	
   

  	
   

  	
   

  
	
  securities in
  rem (e.g. on deposits)

  	
   

  	
  dinglichen Sicherheiten (z.B. an Einlagen)

  
						

 176
 

 

	
   

  	
   

  	
   

  
	
  Assignments
  (e.g. assignments of receivables; global assignments)

  	
   

  	
  Sicherungsabtretungen (z.B. Einzelabtretung von
  Forderungen; Global-/ Mantelabtretung von Forderungen)

  
	
   

  	
   

  	
   

  
	
  Submission to
  immediate foreclosure in respect of all assets or certain assets

  	
   

  	
  Unterwerfung unter die sofortige Zwangsvollstreckung
  mit dem gesamten Vermögen oder hinsichtlich einzelner` Vermögensgegenstände

  
	
   

  	
   

  	
   

  
	
  Agreed
  restraints on disposal

  	
   

  	
  vereinbarten Verfügungsbeschränkungen

  
	
   

  	
   

  	
   

  
	
  Other
  agreeements (e.g. pledges/liens under the General Standard Terms and
  Conditions), all security provided for the Loan/credit (e.g. land charge,
  mortgage, letter of comfort) and trust arrangements)

  	
   

  	
  sonstigen Vereinbarungen (z. B. Pfandrechte nach den
  Allgemeinen Geschäftsbedingungen, sämtliche für das Darlehen/ den Kredit
  bestellte Sicherheiten (z.B. Grundschuld, Hypothek, Patronatserklärung) und
  Treuhandverhältnisse)

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Securities as
  mentioned above that have waived during the term of the Loan

  	
   

  	
  3.

  	
  Sicherheiten der o. g. Art, auf die während des
  bestehenden Darlehensverhältnisses verzichtet wurde

  
	
   

  	
   

  	
   

  
	
  Other comments
  (did any person (other than the Borrower) grant security without releasing
  the Lender from banking secrecy?)

  	
   

  	
  sonstige Anmerkungen (haben Personen (mit Ausnahme
  des Darlehensnehmers) Sicherheiten gewährt, diese aber den Darlehensgeber
  nicht vom Bankgeheimnis befreit?)

  
	
   

  	
   

  	
   

  
	
  This
  Certification is based solely on information that is known to the employees
  of the Lender[s] who have worked on the Loan.

  	
   

  	
  Die Bescheinigung enthält nur solche Angaben, die
  dem bei den Darlehensgebern mit der vorgenannten Finanzierung vertrauten
  Personenkreis bekannt sind.

  
	
   

  	
   

  	
   

  
	
  In providing
  this Certification, the Lender[s] — in the first place for legal reasons —
  [are] not offering any consultancy services on tax matters. In particular,
  the Lender[s] will not be responsible or liable for the Borrowers’ success in
  obtaining any tax benefits which are the objective of this Certification.

  	
   

  	
  Die Darlehensgeber übernehmen mit dieser Erklärung —
  bereits aus rechtlichen Gründen — keine Beratung in steuerlichen
  Angelegenheiten. Insbesondere stehen die Darlehensgeber nicht für einen
  steuerlichen Erfolg ein, der mit dieser Bescheinigung angestrebt wird.

  
					

 177
 

 

	
   

  	
   

  	
   

  
	
  Yours sincerely,

  	
   

  	
  Mit freundlichen Grüßen

  
	
   

  	
   

  	
   

  
	
  [on behalf of
  the] Lender[s]

  	
   

  	
  [im Namen der] Darlehensgeber

  

 

 178
 

 

SIGNATURES

	
  THE MANDATED LEAD ARRANGERS

  
	
   

  
	
  J.P. MORGAN PLC

  
	
   

  
	
  By:

  	
   

  	
  /s/ PAUL HARRIS

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  10 Aldermanbury, London EC2V 7RF

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7777 4548

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Eline Laodalaise / Clinton Ray

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  UBS LIMITED

  
	
   

  
	
  By:

  	
   

  	
  /s/ LUKE JAGGAR

  	
   

  	
  /s/ CHRISTIAN ROTHHARDT

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  2 Finsbury Avenue, London EC2M 2PP

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7568 4664

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Judith Campbell / Alan Greenhow

  
	
   

  
	
   

  
	
  THE ORIGINAL LENDERS

  
	
   

  
	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ PAUL HARRIS

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  10 Aldermanbury, London EC2V 7RF

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7777 4548

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Eline Laodalaise / Clinton Ray

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  UBS LIMITED

  
	
   

  
	
  By:

  	
   

  	
  /s/ LUKE JAGGAR

  	
   

  	
  /s/ CHRISTIAN ROTHHARDT

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  2 Finsbury Avenue, London EC2M 2PP

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7568 4664

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Judith Campbell / Alan Greenhow

  
								

 

 179
 

 

	
  THE BOOKRUNNERS

  
	
   

  
	
  J.P. MORGAN PLC

  
	
   

  
	
  By:

  	
   

  	
  /s/ PAUL HARRIS

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  10 Aldermanbury, London EC2V 7RF

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7777 4548

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Eline Laodalaise / Clinton Ray

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  UBS
  LIMITED

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ LUKE JAGGAR

  	
   

  	
  /s/ CHRISTIAN ROTHHARDT

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  2 Finsbury Avenue, London EC2M 2PP

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7568 4664

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Judith Campbell / Alan Greenhow

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE FACILITY AGENT

  
	
   

  	
   

  	
   

  
	
  J.P. MORGAN EUROPE LIMITED

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ PAUL HARRIS

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  10 Aldermanbury, London EC2V 7RF

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +44 (0) 20 7777 4548

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Eline Laodalaise / Clinton Ray

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE COMPANY

  
	
   

  	
   

  	
   

  
	
  SIRONA DENTAL SYSTEMS, INC

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  30-00 47th Avenue, Long Island City, New York, NY
  11101, USA

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +1 718 482 2514

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Gregory Leahy / Simone Blank

  
	
   

  	
   

  	
   

  

 

 180
 

 

	
  THE ORIGINAL BORROWERS

  
	
   

  
	
  SCHICK TECHNOLOGIES, INC

  
	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  30-00 47th Avenue, Long Island City, New York, NY
  11101, USA

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +1 718 482 2514

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Gregory Leahy

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIRONA DENTAL SYSTEMS GMBH

  
	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Fabrikstraße 31, 64625 Bensheim, Germany

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 6251 16 24 44

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Tom Redlich / Simone Blank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIRONA DENTAL SERVICES GMBH

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Fabrikstraße 31, 64625 Bensheim, Germany

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 6251 16 24 44

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Tom Redlich / Simone Blank

  
	
   

  
	
   

  
	
  THE ORIGINAL GUARANTORS

  
	
   

  
	
  SIRONA DENTAL SYSTEMS, INC.

  
	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  30-00 47th Avenue, Long Island City, New York, NY
  11101, USA

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +1 718 482 2514

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Gregory Leahy / Simone Blank

  
	
   

  	
   

  	
   

  
									

 

 181
 

 

	
  SCHICK TECHNOLOGIES, INC

  
	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  30-00 47th Avenue, Long Island City, New York, NY
  11101, USA

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +1 718 482 2514

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Gregory Leahy

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIRONA DENTAL SYSTEMS GMBH

  
	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Fabrikstraße 31, 64625 Bensheim, Germany

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 6251 16 24 44

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Tom Redlich / Simone Blank

  
	
   

  	
   

  	
   

  
	
  SIRONA DENTAL SYSTEMS, LLC

  
	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  
	
  Address:

  	
   

  	
  4835 Sirona Drive, Charlotte, NC 28273, PO Box
  410100, USA

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +1 704 587 9394

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Simone Blank

  
	
   

  	
   

  	
   

  
	
  SIRONA HOLDING GMBH

  
	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  
	
  Address:

  	
   

  	
  Fabrikstraße 31, 64625 Bensheim, Germany

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 6251 16 24 44

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Tom Redlich / Simone Blank

  
										

 

 182
 

 

	
  SIRONA HOLDING GMBH

  
	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Fabrikstraße 31, 64625 Bensheim, Germany

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 6251 16 24 44

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Tom Redlich / Simone Blank

  
	
   

  	
   

  	
   

  
	
  SIRONA IMMOBILIEN GMBH

  
	
   

  
	
  By:

  	
   

  	
  /s/ JOST FISCHER

  	
   

  	
  /s/ SIMONE BLANK

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Fabrikstraße 31, 64625 Bensheim, Germany

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
  +49 6251 16 24 44

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Tom Redlich / Simone Blank

  
	
   

  	
   

  	
   

  
								

 

 183

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]