Document:

Exhibit
10.9

 

	
  

  	
   

  	
  

  
	
  LETTERHEAD:

  
	
  TALECRIS BIOTHERAPEUTICS HOLDINGS CORP

  
	
   

  

 

December      , 2006

 

(Addressee)

(Address)

 

Re:          Your Special Recognition Bonus and
Restricted Stock Award

 

Congratulations.
The Board of Directors of Talecris Biotherapeutics Holdings Corp. (the “Company”) has awarded you a cash bonus and a restricted
share award subject to the terms and conditions described below. You now have
the opportunity to accept the awards (if you wish to do so) by signing this
letter and the attached Restricted Stock Award Agreement and returning them to
the undersigned. Please review these documents carefully to assure that you
fully understand them.

 

By
executing this letter agreement on the last page, you agree to be bound by all
of the terms and conditions as set forth below. In addition, you recognize and
agree that all determinations, interpretations, or other actions respecting
this letter agreement will be made by the Company’s Board of Directors (or any
Committee appointed by the Board to administer the Company’s obligations under this
letter agreement), and shall (in the absence of manifest bad faith or fraud) be
final, conclusive and binding upon all parties, including you, your heirs, and
representatives.

 

Specific
Terms and Conditions

 

1.             Your award pursuant to this letter agreement
consists of the following:

 

(a)     Cash
bonus of $             ,
payable in accordance with Section 2 below; and

 

(b)              
Restricted Shares hereby awarded pursuant to the Talecris Biotherapeutics Holdings
Corp. 2006 Restricted Stock Plan (the “Plan”), according to the terms and
conditions set forth in the attached Restricted Stock Award Agreement.

 

2.             The Company agrees to pay the cash bonus
set forth in Section 1(a) above, together with any net income earned as of the
date of each payment, in the following manner, subject to the terms and
conditions set forth in Section 3 below:

 

	
  Bonus Payment Date

  	
   

  	
  Amount

  (expressed as a percentage of amount

  specified in Section 1(a) above)

  	
   

  
	
  December      , 2006

  	
   

  	
  57

  	
  %

  
	
  March 31, 2008

  	
   

  	
  14

  	
  1/3%

  
	
  March 31, 2009

  	
   

  	
  14

  	
  1/3%

  
	
  March 31, 2010

  	
   

  	
  14

  	
  1/3%

  

 

 

3.             If your “Continuous Service” (within
the meaning of the Plan) ends for any of the following reasons, your rights to
any further cash bonus payments under this Agreement will be determined in
accordance with the following table, but you shall be entitled to retain any
and all cash bonus payments that the Company has previously paid to you:

 

	
  Reason for Termination of

  Your Continuous Service:

  	
   

  	
  Effect on Unpaid Cash Bonuses

  
	
  Your
  voluntary resignation or your termination with or without “Cause” (within the
  meaning of the Plan)

  	
   

  	
  Your
  rights will be forfeited, null, and void, subject to special rule in last row
  regarding Change in Control.

  
	
  Your
  “Disability” (within the meaning of the Plan)

  	
   

  	
  You
  will receive unpaid bonuses as if your Continuous Service had not ended.

  
	
  Your
  death

  	
   

  	
  Within
  one year of your death, unpaid amounts will be paid in a lump sum, to your
  designated beneficiary (or, if none, your estate).

  
	
  Your
  “Involuntary Termination” within one year of a “Change in Control” (as such
  terms are defined under the Plan)

  	
   

  	
  You
  will receive unpaid bonuses within one year of the date of termination of
  your Continuous Service.

  

 

4.             All payments under this Agreement
shall be subject to and net of all applicable federal, state and local tax
withholding requirements.

 

5.             The Company is establishing an
irrevocable trust (the “Trust”) and
contributing assets to the Trust in order to fund its payment obligations
pursuant to Section 2 above. The Trust will pay the amounts due to you in cash,
unless the Company shall have paid the amounts from its general assets. To the
extent you have not previously vested in your rights with respect to the cash
portion of your bonus under this letter agreement, your rights may not be sold,
pledged assigned hypothecated, transferred, or disposed of in any manner.

 

6.             The laws of the State of Delaware
shall govern the validity of this Award Agreement, the construction of its
terms, and the interpretation of the rights and duties of the parties hereto.

 

*                              *                              *                              *                              *

 

 

As
noted above, the cash bonus and restricted shares that the Company is offering
to you pursuant to this letter agreement are available for acceptance for seven
(7) days from the date identified at the top of the prior page. . If you do not
accept this award within this 7-day period, this offer will be null and void.

 

 

	
   

  	
  TALECRIS BIOTHERAPEUTICS
  HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
    Title:

  

 

The undersigned hereby accepts the terms of this letter agreement on
the terms and conditions set forth above.

 

	
   

  	
  Your signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Your printed name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date of Acceptance: December
       , 2006Exhibit
10.10

 

[EXECUTION
COPY]

 

 

FIRST LIEN TERM LOAN CREDIT AGREEMENT

dated as of

December 6, 2006

among

TALECRIS BIOTHERAPEUTICS HOLDINGS CORP.

TALECRIS BIOTHERAPEUTICS, INC.

PRECISION PHARMA SERVICES, INC. and

TALECRIS PLASMA RESOURCES, INC.

as Borrowers,

The Lenders Party Hereto,

MORGAN STANLEY SENIOR FUNDING, INC.

as Administrative Agent and Syndication Agent

and

GOLDMAN SACHS CREDIT PARTNERS L.P.

as Documentation Agent

 

 

MORGAN STANLEY SENIOR FUNDING, INC.

and

GOLDMAN SACHS CREDIT PARTNERS L.P.

as Joint Lead Arrangers and Joint Bookrunners

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  SECTION 1.01

  	
  Defined Terms

  	
  1

  
	
  SECTION 1.02

  	
  Classification of Loans and Borrowings

  	
  23

  
	
  SECTION 1.03

  	
  Terms Generally

  	
  23

  
	
  SECTION 1.04

  	
  Accounting Terms; GAAP

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  THE CREDITS

  	
  24

  
	
   

  	
   

  
	
  SECTION 2.01

  	
  The Facility

  	
  24

  
	
  SECTION 2.02

  	
  Term Loans

  	
  24

  
	
  SECTION 2.03

  	
  Loans and Borrowings

  	
  24

  
	
  SECTION 2.04

  	
  Requests for Borrowings

  	
  25

  
	
  SECTION 2.05

  	
  Funding of Borrowings

  	
  25

  
	
  SECTION 2.06

  	
  Interest Elections

  	
  26

  
	
  SECTION 2.07

  	
  Termination of Term Loan Commitments

  	
  27

  
	
  SECTION 2.08

  	
  Repayment and Amortization of Loans; Evidence of
  Debt

  	
  27

  
	
  SECTION 2.09

  	
  Prepayment of Loans

  	
  28

  
	
  SECTION 2.10

  	
  Fees

  	
  30

  
	
  SECTION 2.11

  	
  Interest

  	
  30

  
	
  SECTION 2.12

  	
  Alternate Rate of Interest

  	
  31

  
	
  SECTION 2.13

  	
  Increased Costs

  	
  31

  
	
  SECTION 2.14

  	
  Break Funding Payments

  	
  32

  
	
  SECTION 2.15

  	
  Taxes

  	
  33

  
	
  SECTION 2.16

  	
  Payments Generally; Allocation of Proceeds; Sharing
  of Set-offs

  	
  35

  
	
  SECTION 2.17

  	
  Mitigation Obligations; Replacement of Lenders

  	
  36

  
	
  SECTION 2.18

  	
  Indemnity for Returned Payments

  	
  37

  
	
  SECTION 2.19

  	
  Joint and Several Liability of the Borrowers

  	
  37

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  REPRESENTATIONS AND WARRANTIES

  	
  38

  
	
   

  	
   

  
	
  SECTION 3.01

  	
  Organization; Powers

  	
  38

  
	
  SECTION 3.02

  	
  Authorization; Enforceability

  	
  39

  
	
  SECTION 3.03

  	
  Governmental Approvals; No Conflicts

  	
  39

  
	
  SECTION 3.04

  	
  Financial Condition; No Material Adverse Change

  	
  39

  
	
  SECTION 3.05

  	
  Properties

  	
  40

  
	
  SECTION 3.06

  	
  Litigation and Environmental Matters

  	
  40

  
	
  SECTION 3.07

  	
  Compliance with Laws; No Default

  	
  41

  
	
  SECTION 3.08

  	
  Investment and Holding Company Status

  	
  41

  
	
  SECTION 3.09

  	
  Taxes

  	
  41

  
	
  SECTION 3.10

  	
  ERISA

  	
  41

  
	
  SECTION 3.11

  	
  Disclosure

  	
  42

  
	
  SECTION 3.12

  	
  Material Agreements

  	
  42

  
	
  SECTION 3.13

  	
  Solvency

  	
  42

  
	
  SECTION 3.14

  	
  Reportable Transaction

  	
  42

  
						

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 3.15

  	
  Capitalization and Subsidiaries

  	
  42

  
	
  SECTION 3.16

  	
  Common Enterprise

  	
  43

  
	
  SECTION 3.17

  	
  Security Interest in Collateral

  	
  43

  
	
  SECTION 3.18

  	
  Labor Disputes

  	
  43

  
	
  SECTION 3.19

  	
  Broker’s and Transaction Fees

  	
  44

  
	
  SECTION 3.20

  	
  Compliance with FDA Laws and Regulations

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  CONDITIONS

  	
  44

  
	
   

  	
   

  
	
  SECTION 4.01

  	
  Effective Date

  	
  44

  
	
   

  	
   

  
	
  ARTICLE V

  	
  AFFIRMATIVE COVENANTS

  	
  47

  
	
   

  	
   

  
	
  SECTION 5.01

  	
  Financial Statements and Other Information

  	
  47

  
	
  SECTION 5.02

  	
  Notices of Material Events

  	
  49

  
	
  SECTION 5.03

  	
  Existence; Conduct of Business

  	
  50

  
	
  SECTION 5.04

  	
  Payment of Obligations

  	
  50

  
	
  SECTION 5.05

  	
  Maintenance of Properties and Intellectual Property
  Rights

  	
  50

  
	
  SECTION 5.06

  	
  Books and Records; Inspection Rights

  	
  50

  
	
  SECTION 5.07

  	
  Compliance with Laws

  	
  51

  
	
  SECTION 5.08

  	
  Use of Proceeds

  	
  51

  
	
  SECTION 5.09

  	
  Insurance

  	
  51

  
	
  SECTION 5.10

  	
  Additional Collateral; Further Assurances

  	
  52

  
	
  SECTION 5.11

  	
  Compliance with FDA Laws and Regulations

  	
  54

  
	
  SECTION 5.12

  	
  Rate Protection Agreements

  	
  54

  
	
  SECTION 5.13

  	
  Subsidiary Guarantors

  	
  54

  
	
  SECTION 5.14

  	
  Maintenance of Ratings

  	
  54

  
	
   

  	
   

  
	
  ARTICLE VI

  	
  NEGATIVE COVENANTS

  	
  54

  
	
   

  	
   

  
	
  SECTION 6.01

  	
  Indebtedness

  	
  54

  
	
  SECTION 6.02

  	
  Liens

  	
  57

  
	
  SECTION 6.03

  	
  Fundamental Changes

  	
  58

  
	
  SECTION 6.04

  	
  Investments, Loans, Advances and Acquisitions

  	
  59

  
	
  SECTION 6.05

  	
  Swap Agreements

  	
  62

  
	
  SECTION 6.06

  	
  Restricted Payments

  	
  62

  
	
  SECTION 6.07

  	
  Transactions with Affiliates

  	
  63

  
	
  SECTION 6.08

  	
  Restrictive Agreements

  	
  63

  
	
  SECTION 6.09

  	
  Prepayment of Second Lien Term Loans; Sponsor
  Subordinated Debt and Subordinated Indebtedness

  	
  64

  
	
  SECTION 6.10

  	
  Capital Expenditures

  	
  64

  
	
  SECTION 6.11

  	
  Financial Covenants

  	
  65

  
	
  SECTION 6.12

  	
  Amendment of Certain Documents

  	
  66

  
	
  SECTION 6.13

  	
  Permitted Dispositions

  	
  67

  
	
  SECTION 6.14

  	
  Sale and Leaseback

  	
  67

  
	
  SECTION 6.15

  	
  Accounting Policies and Reporting Practices

  	
  67

  
						

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  EVENTS OF DEFAULT

  	
  67

  
	
   

  	
   

  
	
  ARTICLE VIII

  	
  THE ADMINISTRATIVE AGENT

  	
  70

  
	
   

  	
   

  
	
  ARTICLE IX

  	
  MISCELLANEOUS

  	
  73

  
	
   

  	
   

  
	
  SECTION 9.01

  	
  Notices

  	
  73

  
	
  SECTION 9.02

  	
  Waivers; Amendments

  	
  74

  
	
  SECTION 9.03

  	
  Expenses; Indemnity; Damage Waiver

  	
  77

  
	
  SECTION 9.04

  	
  Successors and Assigns

  	
  79

  
	
  SECTION 9.05

  	
  Survival

  	
  82

  
	
  SECTION 9.06

  	
  Counterparts; Integration; Effectiveness

  	
  82

  
	
  SECTION 9.07

  	
  Severability

  	
  82

  
	
  SECTION 9.08

  	
  Right of Setoff

  	
  83

  
	
  SECTION 9.09

  	
  Governing Law; Jurisdiction; Consent to Service of
  Process

  	
  83

  
	
  SECTION 9.10

  	
  Waiver of Jury Trial

  	
  84

  
	
  SECTION 9.11

  	
  Headings

  	
  84

  
	
  SECTION 9.12

  	
  Confidentiality

  	
  84

  
	
  SECTION 9.13

  	
  Several Obligations; Nonreliance; Violation of Law

  	
  85

  
	
  SECTION 9.14

  	
  USA PATRIOT Act

  	
  85

  
	
  SECTION 9.15

  	
  Disclosure

  	
  85

  
	
  SECTION 9.16

  	
  Execution of Loan Documents

  	
  85

  
	
  SECTION 9.17

  	
  Interest Rate Limitation

  	
  85

  
	
  SECTION 9.18

  	
  Administrative Borrower

  	
  86

  
				

 

SCHEDULES:

 

Term Loan
Commitment Schedule

Schedule 1.00 – Preplanned Investments

Schedule 3.05 – Properties

Schedule 3.15 – Capitalization and Subsidiaries

Schedule 6.01 – Existing Indebtedness

Schedule 6.02 – Existing Liens

Schedule 6.04 – Existing Investments

Schedule 6.08 – Existing Restrictions

 

EXHIBITS:

 

Exhibit A –
Form of Assignment and Assumption 

Exhibit B – Form of Compliance Certificate

Exhibit C – Closing Checklist

Exhibit D – Form of Subsidiary Guaranty

 

iii

 

FIRST LIEN TERM LOAN CREDIT AGREEMENT

 

FIRST LIEN
TERM LOAN CREDIT AGREEMENT dated as of December 6, 2006 (as it may be
amended or modified from time to time, this “Agreement”), among TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP., a Delaware corporation, TALECRIS
BIOTHERAPEUTICS, INC., a Delaware corporation, PRECISION PHARMA SERVICES, INC.,
a Delaware corporation, TALECRIS PLASMA RESOURCES, INC., a Delaware
corporation, the Lenders party hereto, and MORGAN STANLEY SENIOR FUNDING, INC.,
as Administrative Agent.

 

The parties hereto hereby agree as follows:

 

ARTICLE I

 

Definitions

 

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

 

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

 

“Accounting
Change” has the meaning assigned to such term in Section 1.04.

 

“Acquisition”
means any transaction or series of related transactions for the purpose of or
resulting, directly or indirectly, in (i) the acquisition of all or substantially
all of the assets of a Person, or of any business or division of a Person, (ii)
the acquisition of in excess of 50% of the Equity Interests of any Person, or
otherwise causing any Person to become a subsidiary, or (iii) a merger or
consolidation or any other combination with another Person (other than a Person
that is a subsidiary), provided that a Loan Party (which shall be a
Borrower, other than Parent, if a Borrower is party to such transaction or
series of transactions) is the surviving entity.

 

“Adjusted
EBITDA” means, for any period, Net Income of the Parent and its
Subsidiaries, plus, to the extent deducted
in determining Net Income of the Parent and its Subsidiaries, (i) interest
expense, amortization or write-off of debt discount, other deferred financing
costs and other fees and charges associated with Indebtedness, (ii) expenses
for taxes based on income or gain, (iii) depreciation, (iv) amortization,
write-offs, write-downs, asset revaluations and other non-cash charges, losses
and expenses, including non-cash equity compensation expenses, (v) impairment
of intangibles, including, without limitation, goodwill, (vi) extraordinary
losses (as determined in accordance with GAAP) realized other than in the
ordinary course of business, (vii) fees paid pursuant to the Management
Agreement as in effect on the date hereof, (viii) fees and expenses incurred in
connection with the Transactions and permitted acquisitions and investments,
(ix) extraordinary, unusual, or non-recurring charges and expenses including
transition, restructuring and “carveout” expenses, (x) one-time costs and
expenses directly related to the establishment of systems and processes
necessary to remedy control issues raised by the Parent’s auditors or to effect
compliance with the rules promulgated under the Sarbanes-Oxley Act of 2002
(whether or not such compliance is required by applicable

 

 

law), it being understood that such costs and expenses (a) shall only
relate to the initial implementation of such systems and processes, (b) shall
be included in the calculation of Adjusted EBITDA only for the period in which
such initial implementation occurred and (c) shall be excluded from the
calculation of Adjusted EBITDA to the extent they relate to any period
subsequent to such initial implementation, (xi) legal, accounting, consulting,
and other costs and expenses relating to the Parent’s potential or actual
issuance of Equity Interests, including without limitation an initial public
offering of common stock, (xii) Special Recognition Bonus 2A paid to members of
management out of proceeds of the Loans, the Second Lien Term Loans and
Revolving Loans (so long as the sum of such bonuses plus the amount of the
Dividend actually paid does not exceed the maximum amount of the Dividend),
(xiii) annual Special Recognition Bonus 2B paid to members of management to the
extent permitted hereunder, and (xiv) Special Recognition Bonus 1, minus, to the extent included in
consolidated income from operations, interest income, extraordinary gains (as
determined in accordance with GAAP) realized other than in the ordinary course
of business, all calculated without duplication for the Parent and its
Subsidiaries on a consolidated basis.

 

Notwithstanding
anything to the contrary contained herein, EBITDA shall be deemed to be (i)
$23,900,000 for the fourth Fiscal Quarter of the 2005 Fiscal Year, (ii)
$59,000,000 for the first Fiscal Quarter of the 2006 Fiscal Year, (iii)
$81,100,000 for the second Fiscal Quarter of the 2006 Fiscal Year and (iv)
$80,000,000 for the third Fiscal Quarter of the 2006 Fiscal Year.

 

“Adjusted
LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next
1/100 of 1%) equal to (i) the LIBO Rate for such Interest Period multiplied by
(ii) the Statutory Reserve Rate.

 

“Administrative
Agent” means Morgan Stanley, in its capacity as administrative agent for
the Lenders hereunder.

 

“Administrative
Borrower” has the meaning assigned to such term in Section 9.18.

 

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

 

“Affiliate”
means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or
is under common Control with the Person specified.

 

“Aggregate
Credit Exposure” means, at any time, the aggregate Credit Exposure of all
the Lenders.

 

“Alternate
Base Rate” means, for any day, a rate per annum equal to the greater of (i)
the Prime Rate in effect on such day and (ii) the Federal Funds Effective Rate
in effect on such day plus 1⁄2 of 1%.  Any
change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the
effective date of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.

 

“Annualized
Basis” means, (a) with respect to the end of the first Fiscal Quarter of
the Parent ending after the Effective Date, the applicable amount for such
Fiscal Quarter multiplied

 

2

 

by four, (b) with respect to the second Fiscal Quarter of the Parent
ending after the Effective Date, the applicable amount for such Fiscal Quarter
and the immediately preceding Fiscal Quarter multiplied by two, and (c) with
respect to the third Fiscal Quarter of the Parent ending after the Effective
Date, the applicable amount for such Fiscal Quarter and the two immediately
preceding Fiscal Quarters multiplied by one and one-third.

 

“Applicable
Percentage” means, with respect to any Lender, with respect to the Term
Loans, a portion equal to a fraction the numerator of which is such Lender’s
outstanding principal amount of the Term Loans and the denominator of which is
the aggregate outstanding amount of the Term Loans of all Lenders.

 

“Applicable Rate” means, for any day, with respect to any ABR
Loan constituting a Term Loan, 2.25% per annum and with respect to any
Eurodollar Loan constituting a Term Loan, 3.50% per annum.

 

“Approved Fund” has the meaning assigned to such term in Section
9.04.

 

“Asset
Disposition” means any sale of assets.

 

“Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an assignee (with the consent of any party whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit A or
any other form approved by the Administrative Agent (which other form shall
not, without the written approval of the Administrative Borrower, affect any
rights or obligations as between the Borrowers and any Lender).

 

“Authorized
Officer” means, with respect to any Person, any of the principal executive
officers, managing members or general partners of such Person but, in any
event, with respect to financial matters, a Financial Officer.

 

“Bayer” means Bayer AG, a German corporation.

 

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

 

“Bonus Plan”
means the Talecris Biotherapeutics Holdings Corp. Special Recognition Bonus
Plan effective as of October 1, 2006 and the Cash Bonus and Restricted Stock
Plan approved by the Board of Directors on November 17, 2006.

 

“Borrowers”
means Talecris Biotherapeutics Holdings Corp., a Delaware corporation, Talecris
Biotherapeutics, Inc., a Delaware corporation, Precision Pharma Services, Inc.,
a Delaware corporation, Talecris Plasma Resources, Inc., a Delaware corporation
and each other direct or indirect subsidiary of any such Person that is or
becomes a Borrower from time to time pursuant to the terms hereof, and their
respective successors.

 

“Borrowing”
means a Term Loan made pursuant to a Borrowing Request and, in the case of
Eurodollar Loans, as to which a single Interest Period is in effect.

 

3

 

“Borrowing
Request” means a request by the Administrative Borrower on behalf of the
Borrowers for a Borrowing in accordance with Section 2.04.

 

“Business
Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain
closed; provided that, when used in connection with a Eurodollar Loan,
the term “Business Day” shall also exclude any day on which banks are not open
for dealings in dollar deposits in the London interbank market.

 

“Capital
Expenditures” means, without duplication, for any period, all cash
expenditures by the Borrowers and their subsidiaries during that period that,
in conformity with GAAP, are or are required to be included in the property,
plant or equipment reflected in the consolidated balance sheet of the Borrowers
and their subsidiaries, provided that Capital Expenditures shall in any
event exclude (i) the purchase price paid in connection with any Permitted
Acquisition, (ii) expenditures made with or reimbursed from the proceeds of any
Recovery Event, and (iii) cash expenditures for equipment replacing similar
equipment in accordance with Section 6.03(a)(iii)(4), to the extent
of the fair market value of such replaced equipment at such time.  For the avoidance of doubt, Capital
Expenditures will be treated hereunder as having been incurred at the time they
are treated as having been incurred under GAAP.

 

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

 

“Change in
Control” means (i) Parent ceases to own, directly or indirectly, 100% of
the Equity Interests in the other Borrowers, (ii) prior to an Initial Public
Offering, the Sponsor Group shall cease to own, directly or indirectly, more
than 50% of the outstanding voting Equity Interests of Parent on a fully
diluted basis and (iii) after an Initial Public Offering (including an offering
that would be an Initial Public Offering except that the amount of proceeds
received with respect thereto is less than $50,000,000), (a) the Sponsor Group
shall cease to own, directly or indirectly, at least 30% of the outstanding
voting Equity Interests of Parent on a fully diluted basis, (b) any other
Person or group owns, directly or indirectly, a percentage of the outstanding voting
Equity Interests in Parent greater than that owned by the Sponsor Group, (c)
occupation of a majority of the seats (other than vacant seats) on the board of
directors of Parent by Persons who were neither (Y) nominated by the board of
directors of Parent, nor (Z) appointed by directors so nominated, or (d) the
Sponsor Group shall cease to Control Holdings.

 

“Change in
Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
date of this Agreement, or (c) compliance by any Lender (or, for purposes of Section
2.13(b), by any lending office of such Lender or by such Lender’s holding
company, if any) with any request or directive (whether or not having the force
of law) of any Governmental Authority with appropriate jurisdiction made or
issued after the date of this Agreement.

 

4

 

“Closing
Checklist” means the closing checklist attached hereto as Exhibit C.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

“Collateral”
means any and all property owned or leased by a Person subject to the
Collateral Documents and any and all other property of any Loan Party, now
existing or hereafter acquired, that may at any time be or become subject to a
security interest or Lien in favor of the Administrative Agent, on behalf of
itself and the other Secured Parties under the Collateral Documents, to secure
the Obligations.

 

“Collateral
Access Agreement” has the meaning assigned to such term in the Security
Agreement or a Subsidiary Security Agreement, as applicable.

 

“Collateral
Documents” means, collectively, the Security Agreement, the Mortgages, the
Subsidiary Security Agreements, and any other documents granting a Lien upon
the Collateral as security for payment of the Obligations.

 

“Collection
Account” means a collection account maintained by one or more Loan Parties
with the Administrative Agent.

 

“Commitment
Schedule” means the Schedule attached hereto identified as such.

 

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

 

“Credit
Exposure” means, as to any Lender at any time, an amount equal to the
aggregate principal amount of such Lender’s Term Loans outstanding at such
time.

 

“Default”
means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both may, unless cured or waived, become an Event
of Default.

 

“Defaulting
Lender” has the meaning assigned to such term in Section 2.05(b).

 

“Disposition”
(or similar words such as “Dispose”) means any sale, transfer, lease,
contribution or other conveyance (including by way of merger) of, or the
granting of options, warrants or other rights to, any of a Borrower’s or its
subsidiaries’ assets (including accounts receivables and Equity Interests of
subsidiaries) to any other Person (other than to another Loan Party) in a
single transaction or series of related transactions (provided, that “Disposition”
shall exclude the write-off in the ordinary course of business of amounts
owing to a Borrower or its subsidiaries which such party has determined to be
uncollectible).

 

“Dividend”
means a one-time dividend (including any bonuses paid to or set aside for management
of the Borrowers) to the Parent’s stockholders, payable on the Effective Date,
in an amount not to exceed an amount equal to (i) the sum of (a) the aggregate
amount of Loans, Revolving Loans and Second Lien Term Loans made on the
Effective Date, plus (b) the aggregate amount of cash on the Parent’s
consolidated balance sheet on the Effective Date, less

 

5

 

(ii) the sum of (a) the amount of the Refinancing, plus (b) fees and
expenses incurred in connection with the Transactions.

 

“Document”
has the meaning assigned to such term in the Security Agreement or a Subsidiary
Security Agreement, as applicable.

 

“dollars”
or “$” refers to lawful money of the United States of America.

 

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

 

“Effective
Date” means the date on which the conditions specified in Section 4.01
are satisfied (or waived in accordance with Section 9.02).

 

“Eligible
Assignee” means (i) a Lender; (ii) an Affiliate of a Lender;
(iii) an Approved Fund; or (iv) any other Person (other than a
natural Person, a Borrower, a subsidiary of any Borrower or a member of the
Sponsor Group or any Affiliate of any of the foregoing).

 

“Environmental
Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions or binding agreements issued, promulgated or
entered into by any Governmental Authority, relating in any way to the
environment, preservation or reclamation of natural resources, or the management,
release or threatened release of any Hazardous Material.

 

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

 

“Equity
Interests” means shares of capital stock (whether preferred or common),
partnership interests, membership interests in a limited liability company,
beneficial interests in a trust or other equity ownership interests in a
Person, and any warrants, options or other rights entitling the holder thereof
to purchase or acquire any such equity interest.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 (or any successor
legislation thereto), as amended from time to time.

 

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

 

“ERISA
Event” means (i) any “reportable event”, as defined in Section 4043 of
ERISA or the regulations issued thereunder with respect to a Plan (other than
an event for which the 30 day notice period is waived); (ii) the existence with
respect to any Plan of an “accumulated

 

6

 

funding deficiency” (as defined in Section 412 of the Code or Section
302 of ERISA), whether or not waived; (iii) the filing pursuant to Section
412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of
the minimum funding standard with respect to any Plan; (iv) the incurrence by
the Borrowers or any of their ERISA Affiliates of any liability under Title IV
of ERISA with respect to the termination of any Plan; (v) the receipt by a
Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to an intention to terminate any Plan or Plans or to appoint a
trustee to administer any Plan; (vi) the incurrence by a Borrower or any of its
ERISA Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (vii) the receipt by a
Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from a Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

 

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

 

“Event of
Default” has the meaning assigned to such term in Article VII.

 

“Excess
Cash Flow” means, for any period, (i) Net Income of the Parent and its
subsidiaries for such period, plus depreciation and amortization expense for
such period, to the extent not paid in cash, minus (ii) without duplication,
the sum of (A) to the extent included in Net Income, all non-cash write-ups,
reversals of charge or expense, or other non-cash income or gains of the Parent
and its subsidiaries included in determining Net Income for such period,
including without limitation gains from dispositions of assets during such
period, (B) all principal payments on the Term Loans, the Second Lien Term
Loans and on other Indebtedness that results in the permanent repayment of such
Indebtedness (including without limitation Capital Lease Obligations) of the
Parent or any of its subsidiaries during such period, including any prepayment
penalty or premium in respect thereof, (C) capital expenditures made by the
Parent and its subsidiaries during such period, (D) any increase in Working
Capital from the first day to the last day of such period, (E) the cash portion
of the purchase price of permitted acquisitions made during such period and the
cash portion of permitted investments (including loans or demand notes to
plasma suppliers) made during such period, including without limitation any
transaction costs and expenses in connection therewith, (F) nonrecurring
charges, expenses and costs, including without limitation restructuring charges
and transaction costs, to the extent capitalized during such period or any
prior period but paid in cash during such period, (G) stock repurchase pursuant
to agreements with management or otherwise contractually required and permitted
to be paid under the Loan Documents, (H) any income arising out of the
amortization or recognition of negative goodwill or other similar non-cash
items, (I) interest expense and debt issuance costs and commissions and
discounts and other fees and charges associated with indebtedness, to the
extent capitalized but paid in cash during such period, (J) to the extent
included in Net Income, income of any consolidated Person that is not a
wholly-owned Subsidiary of the Parent except to the extent dividends or
distributions were received from such person during such period and (K) the
amount of cash used for any security deposits or collateral during such period.

 

7

 

“Excluded
Equity Issuance” means any issuance of Equity Interests (i) by a Loan Party
to another Loan Party, (ii) the proceeds of which are used to fund Capital
Expenditures as permitted by Section 6.10, to fund Permitted
Acquisitions or Investments permitted by Section 6.04, to fund
repurchases or redemptions permitted by Section 6.06, or applied as set
forth in Section 6.11(a) or (c), or (iii) to the extent the
proceeds thereof are received directly or indirectly through Parent (a) from
Sponsor Group or (b) from management of any Loan Party.

 

“Excluded
Joint Venture” means Centric Health Resources, a Delaware corporation and
any other subsidiary of a Borrower that is a joint venture, partnership or
limited liability company and that is designated in writing by the
Administrative Borrower to the Administrative Agent as an Excluded Joint
Venture, provided that investments by the Loan Parties in Excluded Joint
Ventures shall not exceed $30,000,000 in the aggregate at any time outstanding.

 

“Excluded
Taxes” means, with respect to the Administrative Agent, any Lender or any
other recipient of any payment to be made by or on account of any obligation of
any Loan Parties hereunder, (a) income taxes and franchise taxes, net profits
or capital taxes based on (or measured by) its net income or net profits (or
franchise or similar taxes imposed in lieu of net income taxes) imposed on the
Administrative Agent, such Lender or other recipient as a result of a present
or former connection between such Administrative Agent, Lender or other
recipient and the jurisdiction of the Governmental Authority imposing such tax
or any political subdivision or taxing authority thereof or therein, other than
any such connection arising solely as a result of such Lender entering into,
receiving any payments under, undertaking any obligations pursuant to, or
enforcing its rights under, this Agreement, (b) any branch profits taxes
imposed by the United States of America or any similar tax imposed by any other
jurisdiction, (c) any U.S. withholding tax that is imposed on amounts payable
to a Lender at the time a Lender becomes a party to this Agreement (or
designates a new lending office) (other than an assignee pursuant to a request
by any Borrower under Section 2.17(b)), (d) any withholding tax to the extent
imposed as a result of a Lender’s failure to comply with Section 2.15(e);
provided, that clauses (c) and (d) above shall not include amounts to
the extent that such Lender (or its assignor, if any) was entitled, immediately
prior to the time of designation of a new lending office (or assignment), to
receive additional amounts from the Borrowers with respect to such withholding
tax pursuant to Section 2.15(a) or (e) any Taxes imposed as a result of
such Lender’s gross negligence or willful misconduct.

 

“FDA”
means the U.S. Food and Drug Administration and any successor entity.

 

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

 

“Fee Letter”
means the Fee Letter, dated October 31, 2006, among Morgan Stanley, GSCP and
the Administrative Borrower.

 

8

 

“Financial
Officer” means the chief financial officer, principal accounting officer,
treasurer, vice president – finance, or controller of the applicable Person.

 

“Fiscal
Quarter” means a quarter ending on the last day of March, June, September
or December.

 

“Foreign
Subsidiary” means any subsidiary of a Borrower that is organized under the
laws of a jurisdiction other than the United States of America, a State thereof
or the District of Columbia.

 

“Funding
Account” has the meaning assigned to such term in Section 4.01(i).

 

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

 

“Governmental
Authority” means the government of the United States of America, any other
nation or any political subdivision thereof, whether state, provincial or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

 

“GSCP”
means Goldman Sachs Credit Partners L.P., in its individual capacity, and its
successors.

 

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

 

“Hazardous
Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum
or petroleum distillates, asbestos or asbestos containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all
other substances or wastes of any nature regulated pursuant to any
Environmental Law.

 

“Holdings”
means Talecris Holdings, LLC, a Delaware limited liability company.

 

“Hyperimmune
Business” means the business of the Loan Parties that manufactures and distributes
a portfolio of hyperimmunes used for protection and prevention against a broad
range of ailments including prevention of infectious diseases.

 

9

 

“IBR”
means International BioResources, L.L.C., a Louisiana limited liability
company.

 

“IBR
Acquisition Documentation” means all material documents relating to the IBR
Plasma Asset Purchase, in each case as amended, supplemented, amended and
restated or otherwise modified from time to time in accordance with the terms
hereof.

 

“IBR Plasma
Asset Purchase” means the acquisition of substantially all of the assets of
IBR and certain of its affiliates by a Subsidiary.

 

“Indebtedness”
of any Person means, without duplication, (i) all obligations of such Person for
borrowed money, (ii) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (iii) all obligations of such Person
under conditional sale or other title retention agreements relating to property
acquired by such Person, (iv) all obligations of such Person in respect of the
deferred purchase price of property or services already received (excluding
accounts payable and accrued liabilities incurred in the ordinary course of
business and not overdue for more than 90 days), (v) all Indebtedness of others
secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has
been assumed, (vi) all Guarantees by such Person of Indebtedness of others,
(vii) all Capital Lease Obligations of such Person, (viii) all obligations,
contingent or otherwise, of such Person as an account party in respect of
letters of credit and letters of guaranty, (ix) all obligations, contingent or
otherwise, of such Person in respect of bankers’ acceptances, and (x) any
Off-Balance Sheet Liability. The Indebtedness of any Person shall include the
Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness provide that such
Person is not liable therefor.  For
purposes of this definition, neither the IBR Plasma Asset Purchase or any
amounts owing by Parent or any Subsidiary under the IBR Acquisition
Documentation shall be considered to constitute Indebtedness.

 

“Indemnified Taxes” means Taxes other than Excluded Taxes and
Other Taxes.

 

“Information
Memorandum” means the Confidential Information Memorandum, dated
November 2006, relating to the Borrowers and the Transactions.

 

“Initial
Public Offering” means any initial public offering by any Person of Equity
Interests of such Person pursuant to which such Person offers to the public
Equity Interests of Parent or a Borrower pursuant to a registration statement
on Form S-1 (or any similar, successor or replacement form) and receives gross
proceeds of $50,000,000 or more.

 

“Intercreditor
Agreement” means the Intercreditor Agreement dated as of the date hereof by
and among the Administrative Agent, the Administrative Agent (as defined in the
Revolving Credit Agreement), the Administrative Agent (as defined in the Second
Lien Term Loan Credit Agreement) and each Loan Party.

 

“Interest
Coverage Ratio” means, with respect to any Person for any period, the ratio
of (i) Adjusted EBITDA of such Person for such period to (ii) Interest Expense
of such Person as of the last day of such period.

 

10

 

“Interest
Election Request” means a request by the Administrative Borrower on behalf
of the Borrowers to convert or continue a Revolving Borrowing in accordance
with Section 2.06.

 

“Interest
Expense” means, with reference to any period, the cash interest expense of
the Borrowers and their subsidiaries (net of interest income) calculated on a
consolidated basis for such period; provided that for the first three
Fiscal Quarters following the Effective Date, Interest Expense shall be
determined on an Annualized Basis.

 

“Interest
Payment Date” means (i) with respect to any ABR Loan, the last day of each
March, June, September and December and the Maturity Date, and (ii) with
respect to any Eurodollar Loan, the last day of the Interest Period applicable
to the Borrowing of which such Loan is a part and, in the case of a Eurodollar
Borrowing with an Interest Period of more than three months’ duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months’ duration after the first day of such Interest Period and the Maturity
Date.

 

“Interest
Period” means, with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
(or, if reasonably available to all Lenders, nine or twelve months) thereafter,
as the Administrative Borrower (on behalf of the Borrowers) may elect; provided,
that (i) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day
unless such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day
and (ii) any Interest Period pertaining to a Eurodollar Borrowing that
commences on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the last calendar month of such
Interest Period) shall end on the last Business Day of the last calendar month
of such Interest Period. For purposes hereof, the date of a Borrowing initially
shall be the date on which such Borrowing is made and thereafter shall be the
effective date of the most recent conversion or continuation of such Borrowing.

 

“Inventory”
has the meaning assigned to such term in the Security Agreement or a Subsidiary
Security Agreement, as applicable.

 

“Joint
Contribution Agreement” means that certain Amended and Restated Joint
Contribution Agreement, dated as of March 30, 2005, by and among Bayer
HealthCare LLC, a Delaware limited liability company, Holdings, Parent and
Talecris Biotherapeutics, Inc.

 

“Lenders”
means the Persons listed on the Commitment Schedule and any other Person who,
as of any date of determination, (i) has a Term Loan Commitment or, (ii) if the
Term Loan Commitments have been terminated, has Credit Exposure and any other
Person that shall have become a party hereto pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a party hereto in
accordance with the terms hereof pursuant to an Assignment and Assumption.

 

11

 

“Leverage
Ratio” means, with respect to any Person for any period, the ratio of (i)
Total Debt of such Person as of the last day of such Period to (ii) Adjusted
EBITDA of such Person for such period.

 

“LIBO Rate”
means, with respect to any Eurodollar Borrowing for any Interest Period, the
rate appearing on Page 3750 of the Dow Jones Market Service (or on any
successor page or any successor to such Service, or any substitute page or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the “LIBO Rate” with respect to
such Eurodollar Borrowing for such Interest Period shall be the rate at which
dollar deposits of $5,000,000 and for a maturity comparable to such Interest
Period are offered by the principal London office of the Administrative Agent
in immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period.

 

“Lien”
means, with respect to any asset, (i) any mortgage, deed of trust, lien,
pledge, hypothecation, collateral assignment, encumbrance, charge or security
interest in, on or of such asset, and (ii) the interest of a vendor or a lessor
under any conditional sale agreement, capital lease or title retention
agreement (or any financing arrangement having substantially the same economic
effect as any of the foregoing) relating to such asset.

 

“Loan
Documents” means this Agreement, any promissory notes issued pursuant to
this Agreement, the Collateral Documents, the Subsidiary Guarantees, the
Intercreditor Agreement and all other agreements, instruments, documents and
certificates identified in Section 4.01 or on the Closing Checklist
executed and delivered to, or in favor of, the Administrative Agent or any
other Secured Party and including all other pledges, powers of attorney,
consents, assignments, contracts, letter of credit agreements and all other
agreements, instruments, mortgages, and title documents hereafter executed by
or on behalf of any Loan Party, or any employee of any Loan Party, and
delivered to the Administrative Agent or any other Secured Party in connection
with this Agreement or the transactions contemplated thereby (but excluding the
Second Lien Indebtedness Documents and the Revolving Loan Documents).  Any reference in this Agreement or any other
Loan Document to a Loan Document shall include all appendices, exhibits or
schedules thereto, and all amendments, restatements, supplements or other
modifications thereto, and shall refer to this Agreement or such Loan Document
as the same may be in effect at any and all times such reference becomes
operative.

 

“Loan Parties” means each Borrower and each Subsidiary
Guarantor.

 

“Loans”
means the loans and advances made by the Lenders pursuant to this Agreement.

 

“Management
Agreement” means the Management Agreement, dated as of March 31, 2005,
among Cerberus-Plasma Holdings LLC, Ampersand 2001 Limited Partnership, Parent
and Talecris Biotherapeutics, Inc.

 

12

 

“Material Adverse
Effect” means a material adverse effect on (i) the business, assets,
operations, or financial condition of the Loan Parties and their subsidiaries,
taken as a whole, (ii) the ability of the Loan Parties, taken as a whole,
to perform any of their obligations under the Loan Documents to which they are
party, under the Loan Documents, taken as a whole, or (iii) the rights of
or benefits, taken as a whole, of the Administrative Agent or the Lenders under
the Loan Documents.

 

“Material
Contract” has the meaning assigned to such term in the Security Agreement
or a Subsidiary Security Agreement, as applicable.

 

“Material
Indebtedness” means Indebtedness (other than the Loans), or obligations in
respect of one or more Swap Agreements, of any one or more of the Loan Parties
in an aggregate principal amount exceeding $25,000,000.  For purposes of determining Material
Indebtedness, the “obligations” of any Loan Party or any Subsidiary in respect
of any Swap Agreement at any time shall be, after taking into account the
effect of any legally enforceable netting agreement relating to such Swap
Agreements, (i) for any date on or after the date such Swap Agreements have
been closed out and termination value(s) determined in accordance therewith,
such termination value(s), and (ii) for any date prior to the date referenced
in clause (i), the amount(s) determined as the mark-to-market value(s) for such
Swap Agreements, as determined based upon one or more mid-market or other
readily available quotations provided by any recognized dealer in such Swap
Agreements (which may include a Lender or any Affiliate of a Lender).

 

“Maturity
Date” means the seventh anniversary of the Effective Date.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Morgan
Stanley” means Morgan Stanley Senior Funding, Inc., in its individual
capacity, and its Affiliates, and their successors.

 

“Mortgages”
means any mortgage, charge, deed of trust, leasehold mortgage, leasehold deed
of trust, debenture or other agreement which conveys or evidences a Lien in
favor of the Administrative Agent, for the benefit of the Administrative Agent
and the Secured Parties, on the right, title and interest of a Loan Party in
and to real property owned or leased by such Loan Party.

 

“Multiemployer
Plan” means a multiemployer plan as defined in Section 3(37) of ERISA.

 

“Net Cash
Proceeds” means, if in connection with (i) an Asset Disposition or Recovery
Event, cash proceeds thereof net of (a) commissions and other reasonable and
customary transaction costs, fees (including reasonable and customary
professional and consulting fees) and expenses properly attributable to such
transaction and payable by such Loan Party in connection therewith (in each
case, paid to non-Affiliates or, if paid to Affiliates, incurred in the ordinary
course of business at prices and on terms and conditions not less favorable to
the Loan Parties than could be obtained on an arm’s-length basis from
non-Affiliates or otherwise on terms and conditions acceptable to the
Administrative Agent in its sole discretion), (b) sales, transfer or similar
taxes, (c) amounts payable to holders of Liens on such asset (to the extent
such Liens constitute Permitted Encumbrances hereunder), if any, (d) an
appropriate reserve for income,

 

13

 

franchise or capital gains taxes established in connection therewith,
and (e) proceeds constituting reserves for escrows and indemnities, until such
reserves are no longer required and such proceeds are released to the Loan
Parties, (ii) the issuance or incurrence of Indebtedness, cash proceeds net of
attorneys’ fees, investment banking fees, accountants’ fees, underwriting
discounts and commissions and other customary fees and expenses actually
incurred in connection therewith, or (iii) an equity issuance, cash proceeds
net of underwriting discounts and commissions and other reasonable costs, fees
and expenses actually paid to non-Affiliates or, if payable to Affiliates,
incurred in the ordinary course of business at prices and on terms and
conditions not less favorable to the Loan Parties than could be obtained on an
arm’s-length basis from non-Affiliates or otherwise on terms and conditions
acceptable to the Administrative Agent in its sole discretion.

 

“Net Income”
means, with respect to any Person for any period, the aggregate of the net
income (loss) of such Person and its Subsidiaries, on a consolidated basis, for
such period, all as determined in accordance with GAAP; provided, that
the net losses of any Person that is not a consolidated Subsidiary or that is
accounted for by the equity method of accounting shall be excluded, and the net
income of any such Person shall be included only to the extent of the amount of
dividends or distributions paid or payable to such first-mentioned Person or a
consolidated Subsidiary of such Person.

 

“Non-Consenting
Lender” has the meaning assigned to such term in Section 9.02(f).

 

“Non-U.S.
Lender” means a Lender (or a Participant) that is organized under the laws
of a jurisdiction other than the United States of America, a state thereof or
the District of Columbia.

 

“Obligations”
means all unpaid principal of and accrued and unpaid interest on the Loans, all
accrued and unpaid fees and all expenses, reimbursements, indemnities and other
obligations of the Loan Parties to the Lenders or to any Lender, the
Administrative Agent or any indemnified party arising under the Loan
Documents.  Obligations shall also
include all Swap Obligations owing to one or more Secured Parties.

 

“Off-Balance
Sheet Liability” of a Person means (a) any indebtedness, liability or
obligation under any sale and leaseback transaction which is not a Capital
Lease Obligation, or (b) any indebtedness, liability or obligation under
any so-called “synthetic lease” transaction entered into by such Person.

 

“Other
Taxes” means any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any
payment made hereunder or from the execution, delivery, registration, recording
or enforcement of this Agreement or any other Loan Document.

 

“Parent”
means Talecris Biotherapeutics Holdings Corp., a Delaware corporation.

 

“Participant” has the meaning set forth in Section 9.04.

 

“Patriot Act Disclosures” means all documentation and other
information which the Administrative Agent or any Lender reasonably requests in
order to comply with its ongoing

 

14

 

obligations under applicable “know your customer” and anti-money
laundering rules and regulations, including the Patriot Act.

 

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

 

“Permitted
Acquisition” has the meaning set forth in Section 1.04(b).

 

“Permitted
Discretion” means a determination made in good faith and in the exercise of
commercially reasonable business judgment.

 

“Permitted Encumbrances” means:

 

(a)                                  Liens
imposed by law for taxes that are not yet due or are being contested in compliance
with Section 5.04;

 

(b)                                 carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens
imposed by law, arising in the ordinary course of business or are being
contested in compliance with Section 5.04;

 

(c)                                  pledges
and deposits made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
regulations;

 

(d)                                 deposits
to secure the performance of bids, trade contracts, leases, statutory
obligations, surety bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;

 

(e)                                  judgment
liens in respect of judgments, and liens securing appeal bonds, in each case
with respect to judgments that do not constitute an Event of Default under clause
(j) of Article VII;

 

(f)                                    easements,
zoning restrictions, rights-of-way and similar encumbrances on real property
imposed by law or arising in the ordinary course of business which in the
aggregate are not substantial in amount and do not in any case materially
diminish the value of the affected property or materially interfere with the
ordinary conduct of business of any Borrower;

 

(g)                                 Liens
in favor of the Administrative Agent granted pursuant to any Loan Document;

 

(h)                                 any
interest or title of a lessor under any lease entered into by any Borrower in
the ordinary course of business;

 

(i)                                     Liens
arising from precautionary UCC and PPSA financing statements regarding
operating leases entered into by any Borrower in the ordinary course of
business;

 

15

 

(j)                                     Liens
in favor of customs and revenue authorities arising as a matter of law to
secure the payment of customs duties in connection with the importation of
goods; and

 

(k)                                  Liens
arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by any Borrower in the ordinary
course of business.

 

“Permitted Investments” means:

 

(a)                                  direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency
thereof to the extent such obligations are backed by the full faith and credit
of the United States of America), in each case maturing within one year from
the date of acquisition thereof;

 

(b)                                 investments
in commercial paper maturing within one year from the date of acquisition
thereof and having, at such date of acquisition, the highest credit rating
obtainable from S&P or from Moody’s;

 

(c)                                  investments
in certificates of deposit, banker’s acceptances and time deposits maturing
within one year from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, any
domestic office of any commercial bank organized under the laws of the United
States of America or any State thereof which has a combined capital and surplus
of not less than $500,000,000;

 

(d)                                 fully
collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial
institution satisfying the criteria described in clause (c) above;

 

(e)                                  money
market funds that (i) comply with the criteria set forth in Securities and
Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii)
are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of
at least $5,000,000,000; and

 

(f)                                    deposits
which can be withdrawn on notice of any commercial bank and a maturity of less
than 10 days, held by any Borrower and not subject to any Lien (other than
pursuant to the Loan Documents or other Permitted Encumbrances), denominated in
Dollars and the proceeds of which are capable of being remitted to such
Borrower in the United States of America.

 

“Person”
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity of whatever nature.

 

“Plan”
means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or
Section 302 of

 

16

 

ERISA, and in respect of which the Parent or any ERISA Affiliate is
(or, if such plan were terminated, would under Section 4069 of ERISA be deemed
to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Plasma
Protein Therapeutic Business” means the business of manufacturing,
marketing, collection, distribution, sale and/or research, testing and
development of all plasma-derived products currently conducted by the Borrowers
or their respective Affiliates and any other plasma-derived therapeutic protein
and recombinant technologies and substitutes and equivalents therefor.

 

“PPSA”
means the Personal Property Security Act for the applicable jurisdiction and,
in respect of the Province of Quebec, means the Quebec Civil Code.

 

“Precision”
means Precision Pharma Services, Inc., a Delaware corporation.

 

“Preplanned
Investment” means an Investment by a Loan Party in Equity Interests or
assets of the Persons set forth on Schedule 1.0.

 

“Primary
Syndication” means the period commencing on or prior to the date hereof and
ending on the earlier of (a) 30 days following the Effective Date and (b) the
date that the Joint Lead Arrangers have determined (and notified the Borrower)
the primary syndication of the Loans has been completed.

 

“Prime Rate”
means the rate of interest published in the Wall Street Journal as the “prime
rate” (or equivalent) at such time.

 

“Pro Forma
Information” has the meaning assigned to such term in clause (i) of Section 4.1(j).

 

“Projections” has the meaning assigned to such term in Section
5.01(e).

 

“Recovery
Event” means any settlement of, or payment in respect of, any property or
casualty insurance claim or any condemnation proceeding relating to any asset
of any Borrower.

 

“Refinancing”
means the refinancing of the indebtedness of the Borrowers and their
subsidiaries set forth on Schedule 1.01(b).

 

“Register” has the meaning set forth in Section 9.04.

 

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

 

“Regulatory
Cap Ex” means Capital Expenditures required to be made by Parent or any
Subsidiary pursuant to a notice issued by or an order issued by or a regulation
promulgated by a Governmental Authority with appropriate jurisdiction over
Parent or such Subsidiary.

 

17

 

“Report”
means reports prepared by the Administrative Agent or another Person showing
the results of appraisals, field examinations or audits pertaining to any
Borrower’s assets from information furnished by or on behalf of any Borrower,
after the Administrative Agent has exercised its rights of inspection pursuant
to this Agreement, which Reports may be distributed to the Lenders by the
Administrative Agent.

 

“Required
Lenders” means, at any time, Lenders representing a majority of the
Aggregate Credit Exposure.

 

“Responsible
Officer”  shall mean the chief executive
officer of any Borrower or any Guarantor, the president of any Borrower or any
Guarantor (if not the chief executive officer), any senior or executive vice
president of any Borrower or any Guarantor, the chief financial officer or
treasurer of any Borrower or any Guarantor or, with respect to financial
matters, the chief financial officer, senior financial officer or treasurer of
any Borrower.

 

“Restricted
Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in any
Borrower, or any payment by any Borrower (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of
any such Equity Interests in any Borrower.

 

“Revolving
Credit Agreement” means the Revolving Credit Agreement, dated as of the date
hereof, among the Borrowers and the lenders party thereto.

 

“Revolving
Lender” means a lender having a commitment or credit exposure under the
Revolving Credit Agreement.

 

“Revolving
Loan Collateral” means any and all property owned or leased by a Loan Party
that is subject to a first priority security interest or Lien in favor of the
administrative agent for the Revolving Lenders, on behalf of itself and the
other secured parties under the Revolving Loan Documents, to secure the
Revolving Obligations.

 

“Revolving
Collateral Documents” means any documents granting a Lien upon the
Revolving Loan Collateral as security for payment of the Revolving Obligations.

 

“Revolving
Loan Documents” means the Revolving Credit Agreement, the Intercreditor
Agreement, and all documents relating thereto or executed in connection
therewith.

 

“Revolving
Loans” means the Revolving Loans extended by the Lenders to the Borrowers
pursuant to the Revolving Credit Agreement.

 

“Revolving
Obligations” means the “Obligations” as defined in the Revolving Credit
Agreement.

 

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

 

18

 

“Second
Lien Indebtedness Documents” means the Second Lien Term Loan Credit
Agreement, the Intercreditor Agreement, and all documents relating thereto or
executed in connection therewith.

 

“Second
Lien Obligations” means the “Obligations” as defined in the Second Lien
Term Loan Credit Agreement.”

 

“Second
Lien Term Loan Lenders” means a lender having a commitment or credit
exposure under the Second Lien Term Loan Credit Agreement.

 

“Second
Lien Term Loan Collateral” means any and all property owned or leased by a
Person subject to, or purported to be subject to, the Second Lien Term Loan
Collateral Documents and any and all other property of any Loan Party, now
existing or hereafter acquired, that may at any time be or become subject to a
security interest or Lien in favor of administrative agent for the Second Lien
Term Loan Lenders, on behalf of itself and the other secured parties under the
Second Lien Term Loans, to secure the Second Lien Obligations.

 

“Second
Lien Term Loan Collateral Documents” means any documents granting a Lien
upon the Second Lien Term Loan Collateral as security for payment of the Second
Lien Obligations.

 

“Second
Lien Term Loan Credit Agreement” means the Second Lien Term Loan Credit
Agreement, dated as of the date hereof, among the Borrowers and the lenders
party thereto.

 

“Second
Lien Term Loans” means the Term Loans as defined in the Second Lien Term
Loan Credit Agreement.

 

“Secured
Parties” means, collectively, (i) the Administrative Agent, (ii) the
Lenders, and (iii) any Lender or Affiliate of a Lender which is (or at the
time such Swap Agreement was entered into, was) a counterparty to any Swap
Obligation with any Borrower.

 

“Security
Agreement” means that certain Pledge and Security Agreement, dated as of
the date hereof, among the Borrowers and the Administrative Agent, for the
benefit of the Administrative Agent and the other Secured Parties, and any
other pledge or security agreement entered into, after the date of this
Agreement, by any Borrower (as required by this Agreement or any other Loan
Document).

 

“Seller
Note” means a promissory note containing subordination provisions and
otherwise upon terms and conditions (including with respect to restrictions on
payment of interest in cash) reasonably acceptable to the Administrative Agent,
representing Indebtedness of one or more Loan Parties incurred in connection
with any Permitted Acquisition and payable to the seller in connection
therewith.

 

“Senior
Convertible Preferred Stock” means the 10% Senior Convertible Preferred
Stock, Series A and Series B, issued by Parent.

 

“Special
Recognition Bonus 1” means the aggregate of the special recognition bonuses
to be paid pursuant to a grant made on October 12, 2006 pursuant to the Bonus
Plan.

 

19

 

“Special
Recognition Bonus 2A” means the aggregate of the special recognition
bonuses to be paid pursuant to the Bonus Plan in connection with the
Transactions from the proceeds of the Loans and Revolving Loans.

 

“Special
Recognition Bonus 2B” means the aggregate of the remainder of the special
recognition bonuses to be paid pursuant to the Bonus Plan in connection with
the Transaction.

 

“Specified
Equity Contribution” has the meaning assigned to such term in Section
6.11(b).

 

“Specified
Leasehold Property” means any real property leased by any Loan Party
located in the United States or Canada which is (i) used primarily for purposes
other than office uses and having an annual rental cost in excess of $2,500,000
or (ii) otherwise material to the operation of the Loan Parties’ business
(including the Plasma Protein Therapeutic Business), as reasonably determined
by the Administrative Agent.

 

“Sponsor
Group” means, collectively, Cerberus Capital Management, L.P., Ampersand
Ventures and Affiliates of each of them and members of management and other
employees of the Borrowers which hold or which are eligible to hold Equity
Interests in the Parent.

 

“Sponsor
Subordinated Debt” means Indebtedness incurred by the Parent (and not
Guaranteed by any other Loan Party) owing to a member of the Sponsor Group (i)
the payment of which is subordinated to payment of the Obligations to the
reasonable satisfaction of the Administrative Agent, (ii) for which interest is
payable in kind, and not in cash, at all times prior to maturity, (iii) which
is unsecured, and (iv) which does not amortize, mature or become mandatorily
prepayable prior to six months after the Maturity Date.

 

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

 

“Subordinated
Indebtedness” of a Person means any Indebtedness of such Person (i) the
payment of which is subordinated to payment of the Obligations to the reasonable
satisfaction of the Administrative Agent, (ii) for which interest is payable in
kind, and not in cash (unless at the time interest is to be paid, no Default
has occurred and is continuing and the Interest Coverage Ratio is no less than
2.75:1.00, calculated on a pro forma basis prior to giving effect to such
payment in which case interest may be payable in cash), at all times prior to
maturity, (iii) which

 

20

 

is unsecured, and (iv) which does not amortize or mature prior to six
months after the Maturity Date.

 

“subsidiary”
means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other
entity the accounts of which would be consolidated with those of the parent in
the parent’s consolidated financial statements if such financial statements
were prepared in accordance with GAAP as of such date, as well as any other
corporation, limited liability company, partnership, association or other
entity (i) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are,
as of such date, owned, controlled or held, or (ii) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent
or by the parent and one or more subsidiaries of the parent.

 

“Subsidiary” means any subsidiary of the Parent.  For purposes of this Agreement, any trust
owned by the Parent or any other Subsidiary established solely to hold Equity
Interests of the Parent as part of the Bonus Plan shall not be considered to be
a Subsidiary or a subsidiary of any Loan Party.

 

“Subsidiary
Guarantor” means each Domestic Subsidiary that has executed and delivered
to the Administrative Agent the Subsidiary Guaranty (including by means of a
delivery of a supplement thereto) and their respective successors.

 

“Subsidiary
Guaranty” means the guaranty executed and delivered by an Authorized
Officer of the Borrower, each other Domestic Subsidiary existing on the
Effective Date and each Domestic Subsidiary that becomes a Subsidiary Guarantor
pursuant to the terms of this Agreement, substantially in the form of Exhibit D
hereto, as amended, supplemented, amended and restated or otherwise modified
from time to time.

 

“Swap
Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by
reference to, one or more rates, currencies, commodities, equity or debt
instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar transaction
or any combination of these transactions, including any agreement entered into
pursuant to Section 5.12; provided that no (i) phantom stock or
similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of any Borrower
or any Subsidiary, or (ii) purchase and sale agreements for supplies of
inventory intended for actual use in the business of the Borrowers, shall be a
Swap Agreement.

 

“Swap
Obligations” of a Person means any and all obligations of such Person,
whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor), under (i) any and all Swap Agreements, and
(ii) any and all cancellations, buybacks, reversals, terminations or
assignments of any Swap Agreement transaction.

 

21

 

“taxes”
means any and all present or future taxes, levies, imposts, duties, deductions,
charges or withholdings imposed by any Governmental Authority, together with
any interest, penalties or additions to tax imposed thereon or with respect
thereto.

 

“Term Loan” means a Loan made pursuant to Section 2.02.

 

“Term Loan
Commitment” means, with respect to each Lender, the commitment of such
Lender to make Loans hereunder, as such commitment may be reduced from time to
time pursuant to Section 2.10. 
The initial amount of each Lender’s Term Loan Commitment is set forth on
the Commitment Schedule, or in the Assignment and Assumption pursuant to which
such Lender shall have assumed its Term Loan Commitment, as applicable.  The initial aggregate amount of the Lenders’
Term Loan Commitments is $700,000,000.

 

“Total Debt”
means, at any date, the remainder of (i) aggregate principal amount of all
Indebtedness of the types described in clauses (i), (ii), (vii), and (viii) of
the definition thereof of the Borrowers and their subsidiaries at such date
less (ii) the aggregate amount of cash and Permitted Investments (in each case
not subject to any Liens (other than Permitted Encumbrances)) of each Loan
Party at such date to the extent the aggregate amount of such cash and such
Permitted Investments exceed $3,000,000 at such date, in each case, determined
on a consolidated basis in accordance with GAAP.

 

“Transactions”
means the execution, delivery and performance by the Borrowers of this
Agreement, the Revolving Loan Documents, the Second Lien Term Loan Documents,
the borrowing of Loans, Revolving Loans, Second Lien Term Loans and the use of
the proceeds thereof pursuant to Section 5.08 and the consummation of
the Refinancing and the payment of the Dividend, in each case on the Effective
Date.

 

“Type”,
when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Adjusted LIBO Rate or the Alternate Base Rate.

 

“UCC”
means the Uniform Commercial Code as in effect from time to time in the State
of New York or any other state the laws of which are required to be applied in
connection with the issue of perfection of security interests.

 

“Unliquidated
Obligations” means, at any time, any Obligations (or portion thereof) that
are contingent in nature or unliquidated at such time, including any Obligation
that is: (i) an obligation to reimburse a bank for drawings not yet made under
a letter of credit issued by it; (ii) any other obligation (including (a) any
guarantee and (b) indemnification obligations for reimbursement of increased
costs for which no claim or demand has been made) that is contingent in nature
at such time; or (iii) an obligation to provide collateral to secure any of the
foregoing types of obligations.

 

“Withdrawal
Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are
defined in Part I of Subtitle E of Title IV of ERISA.

 

22

 

“Working Capital”
means, at any date of determination, the excess of (a) the sum of all amounts
(other than cash and cash equivalents) that would, in conformity with GAAP, be
set forth opposite the caption “total current assets” (or any like caption) on
a consolidated balance sheet of the Parent and its Subsidiaries at such date
over (b) the sum of all amounts that would, in conformity with GAAP, be set
forth opposite the caption “total current liabilities” (or any like caption) on
a consolidated balance sheet of the Parent and its Subsidiaries on such date,
but excluding, without limitation, the current portion of Total Debt to the
extent included in the computation of current liabilities.

 

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

 

SECTION 1.03       Terms Generally.  The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  Unless the context requires otherwise (i) any
definition of or reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document
as from time to time amended, supplemented or otherwise modified (subject to
any restrictions on such amendments, supplements or modifications set forth
herein), (ii) any reference herein to any Person shall be construed to include
such Person’s successors and assigns, (iii) the words “herein”, “hereof” and “hereunder”,
and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof, (iv) all references
herein to Articles, Sections, Exhibits and Schedules shall be construed to
refer to Articles and Sections of, and Exhibits and Schedules to, this
Agreement and (v) the words “asset” and “property” shall be construed to have
the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract
rights.

 

SECTION 1.04       Accounting Terms; GAAP.  (a) Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time.  In the event that any Accounting Change (as
defined below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
the Administrative Borrower and the Administrative Agent agree to enter into
negotiations in good faith in order to amend such provisions of this Agreement.  Until such time as such an amendment shall
have been executed and delivered by the Administrative Borrower, the
Administrative Agent and the Required Lenders, all financial covenants,
standards and terms in this Agreement shall continue to be calculated or
construed as if such Accounting Changes had not occurred.  “Accounting Changes” refers to changes
in accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants or, if applicable, the
Securities and Exchange Commission and excludes changes in estimates.

 

23

 

(b)           As of any date of determination, for purposes of
determining the Interest Coverage Ratio and the Leverage Ratio (and any
financial calculations required to be made or included within such ratios
(including Net Income and Adjusted EBITDA), or required for purposes of
preparing any Compliance Certificate to be delivered at any time or doing any
calculations on a pro forma basis), the calculation of such ratios and other
financial calculations shall include or exclude, as the case may be, the effect
of any assets or businesses that have been acquired pursuant to an Acquisition
permitted hereunder (a “Permitted Acquisition”) or Disposed of by the
Parent or any of its Subsidiaries pursuant to the terms hereof (including
through mergers or consolidations) as of such date of determination, as
determined by the Parent on a pro  forma basis in accordance with
GAAP, which determination may, include one-time adjustments or reductions in
costs, if any, directly attributable to any such permitted Disposition or
Permitted Acquisition, as the case may be, in each case (i) calculated in
accordance with Article 11 of Regulation S-X of the Securities Act of 1933, as
amended, for the period of four Fiscal Quarters ended on or immediately prior
to the date of determination of any such ratios and (ii) giving effect to any
such Permitted Acquisition or permitted Disposition as if it had occurred on
the first day of such four Fiscal Quarter period.

 

ARTICLE II

 

The Credits

 

SECTION 2.01       The Facility.  Subject to the terms and conditions set forth
herein, each Lender agrees to make Term Loans to the Borrowers on the Effective
Date in an aggregate principal amount that will not result in (i) such Lender’s
Credit Exposure exceeding such Lender’s Term Loan Commitment or (ii) the sum of
the Aggregate Credit Exposures exceeding the Term Loan Commitment.

 

SECTION 2.02       Term Loans.  Each Lender severally agrees to make a Term
Loan to the Borrowers on the Effective Date, in an amount equal to such Lender’s
Term Loan Commitment.  Each Lender shall
make the amount of such Lender’s Term Loan available to the Administrative
Agent in immediately available funds at the Administrative Agent’s designated
account, not later than 10 a.m., New York time, on the Effective Date.  After the Administrative Agent’s receipt of
the proceeds of such Term Loan from the Lenders, the Administrative Agent shall
make the proceeds of such Term Loan available to the Borrowers on the Effective
Date by transferring immediately available funds to the account(s) designated
by the Administrative Borrower in writing. 
The Term Loans shall amortize as set forth in Section 2.08.

 

SECTION 2.03       Loans and Borrowings.  (a)  Subject to Section 2.12,
the Term Loans shall initially be ABR Loans but may be converted into
Eurodollar Loans in accordance with Section 2.06.  Each Lender at its option may make any Eurodollar
Loan by causing any domestic or foreign branch or Affiliate of such Lender to
make such Loan; provided that any exercise of such option shall not
affect the obligation of the Borrowers to repay such Loan in accordance with
the terms of this Agreement.

 

(b)           Notwithstanding any other provision of this Agreement, the
Borrowers shall not be entitled to request, or to elect to convert or continue,
any Borrowing if the Interest Period requested with respect thereto would end
after the Maturity Date.

 

24

 

SECTION
2.04       Requests for Borrowings.
To request a Borrowing, the Administrative Borrower shall notify the
Administrative Agent of such request by telephone or e-mail not later than
10:00 a.m., New York time, on the date of the proposed Borrowing. Each such
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand
delivery or facsimile to the Administrative Agent of a written Borrowing
Request in a form reasonably acceptable to the Administrative Agent and signed
by the Administrative Borrower. Each such telephonic, email and written
Borrowing Request shall specify the following information in compliance with Section
2.02:

 

(i)            the aggregate amount of the requested Borrowing; and

 

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

 

Promptly following receipt of a Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender’s Loan to be made as part of the
requested Borrowing.

 

SECTION
2.05       Funding of Borrowings. (a)  Term Loans shall be made as provided in Sections
2.02 and 2.03. The Administrative Agent will make such Loans
available to the Borrowers by promptly crediting the amounts so received, in
like funds, to the Funding Account.

 

(b)           Unless the Administrative Agent shall have received notice
from a Lender prior to the proposed date of any Borrowing that such Lender will
not make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with Section 2.05(a) and
may, in reliance upon such assumption, make available to the Borrowers a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent (a “Defaulting
Lender”), then the applicable Lender severally agrees to pay to the
Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made
available to the Borrowers to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Effective Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan
included in such Borrowing. The Administrative Agent shall not be obligated to
transfer to a Defaulting Lender any payments made by the Borrowers to the
Administrative Agent for the Defaulting Lender’s benefit, and, in the absence
of such transfer to the Defaulting Lender, the Administrative Agent shall
transfer any such payments to each other non-Defaulting Lender ratably in
accordance with their Applicable Percentage of the Term Loans (but only to the
extent that such Defaulting Lender’s Borrowing was funded by the other Lenders)
or, if so directed by the Administrative Borrower and if no Default has
occurred and is continuing (and to the extent such Defaulting Lender’s
Borrowing was not funded by the other Lenders), retain the same to be
re-advanced to the Borrowers as if such Defaulting Lender had made Loans to the
Borrowers. Subject to the foregoing, the Administrative Agent may hold and, in
its Permitted Discretion, setoff such Defaulting Lender’s funding shortfall
against that Defaulting Lender’s Applicable Percentage of all payments received
from the Borrowers or re-lend to the Borrowers for the account of such
Defaulting Lender the amount of all such payments

 

25

 

received and retained by the Administrative
Agent for the account of such Defaulting Lender. Until a Defaulting Lender
cures its failure to fund its Applicable Percentage of any Borrowing solely for
the purposes of voting or consenting to matters with respect to the Loan
Documents, such Defaulting Lender shall be deemed not to be a “Lender” and such
Defaulting Lender’s Term Loan Commitment shall be deemed to be zero. This Section
2.05(b) shall remain effective with respect to such Defaulting Lender until
(x) the Obligations under this Agreement shall have been declared or shall have
become immediately due and payable, (y) the non-Defaulting Lenders, the
Administrative Agent, and the Administrative Borrower shall have waived such
Defaulting Lender’s default in writing, or (z) the Defaulting Lender makes its
Applicable Percentage of the applicable Borrowing and pays to Administrative
Agent all amounts owing by the Defaulting Lender in respect thereof. The
operation of this Section 2.05(b) shall not be construed to increase or
otherwise affect the Term Loan Commitment of any Lender, to relieve or excuse
the performance by such Defaulting Lender or any other Lender of its duties and
obligations hereunder, to relieve or excuse the performance by any Borrower of
its duties and obligations hereunder, or to limit the Borrowers’ rights or
remedies against any such Defaulting Lender.

 

SECTION
2.06       Interest Elections. (a)  During the Primary Syndication, Borrowings
must be maintained as ABR Loans. Thereafter, the Administrative Borrower (on
behalf of the Borrowers) may elect to convert such Borrowing to a different
Type or to continue such Borrowing and may elect Interest Periods therefor, all
as provided in this Section 2.06. The Administrative Borrower (on behalf
of the Borrowers) may elect different options with respect to different
portions of the affected Borrowing, in which case each such portion shall be
allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing.

 

(b)           To make an election pursuant to this Section, the
Administrative Borrower shall notify the Administrative Agent of such election
by telephone (i) in the case of a Eurodollar Borrowing, not later than 1:00
p.m., New York time, three Business Days before the date of the proposed
Borrowing, or (ii) in the case of an ABR Borrowing, not later than 1:00 p.m.,
New York time, on the date of the proposed Borrowing. Each such telephonic
Interest Election Request shall be irrevocable and shall be confirmed promptly
by hand delivery or facsimile to the Administrative Agent of a written Interest
Election Request in a form approved by the Administrative Agent and signed by
the Administrative Borrower.

 

(c)           Each telephonic and written Interest Election Request
shall specify the following information in compliance with Section 2.02:

 

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

 

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

 

26

 

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

 

(iv)          if the resulting Borrowing is a Eurodollar Borrowing, the
Interest Period to be applicable thereto after giving effect to such election,
which shall be a period contemplated by the definition of the term “Interest
Period.”

 

If any such Interest Election Request requests a Eurodollar Borrowing
but does not specify an Interest Period, then the Borrowers shall be deemed to
have selected an Interest Period of one month’s duration.

 

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

 

SECTION
2.07       Termination of Term Loan
Commitments. Unless previously terminated, the Term Loan Commitments shall
terminate immediately after the occurrence of the Effective Date (after giving
effect to the funding of the Term Loans on such date).

 

SECTION
2.08       Repayment and Amortization
of Loans; Evidence of Debt. (a)  The
Term Loans shall amortize quarterly, commencing on March 31, 2007, and on each
June 30, September 30, December 31 and March 31 thereafter, in installments of
principal equal to 0.25% of the original aggregate principal amount of the Term
Loans per installment. The final installment of principal shall be in an amount
equal to the remaining principal balance of the Term Loans and shall be due and
payable on the Maturity Date. Each such installment shall be payable to the
Administrative Agent for the account of the applicable Lender. Payments or
prepayments of the Term Loans may not be reborrowed. All unpaid Obligations
shall be paid in full in cash by the Borrowers on the Maturity Date.

 

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

 

(c)           The Administrative Agent shall maintain accounts in which
it shall record (i) the amount of each Loan made hereunder, the Type thereof
and the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrowers to
each Lender hereunder, and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof. In the event of a conflict between the records of the
Administration Agent and any Lender, the records of the Administration Agent
will be presumed to be correct absent manifest error.

 

(d)           The entries made in the accounts maintained pursuant to Section 2.08(b)
or (c) shall be prima  facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure
of any Lender or the Administrative Agent to maintain such accounts or any
error therein shall not in any manner affect the obligation of the

 

27

 

Borrowers to repay the Loans in accordance
with the terms of this Agreement or affect the amount of such Loans.

 

(e)           Any Lender may request that Loans made by it be evidenced
by a promissory note. In such event, the Borrowers shall prepare, execute and
deliver to such Lender a promissory note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns)
and in a form approved by the Administrative Agent. Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 9.04) be represented by
one or more promissory notes in such form payable to the order of the payee
named therein (or, if such promissory note is a registered note, to such payee
and its registered assigns) except to the extent that any such Lender
subsequently returns any such promissory note for cancellation and requests
that such Loans once again be evidenced as described in Section 2.08(b)
and (c).

 

SECTION
2.09       Prepayment of Loans. (a)  The Borrowers shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, subject
to prior notice in accordance with Section 2.09(c). Any such voluntary
prepayment shall be in a minimum amount of $1,000,000 or integral multiples of
$500,000 in excess thereof.

 

(b)           (i)  Immediately
upon receipt by any Loan Party of the Net Cash Proceeds of any Asset
Disposition or Recovery Event, to the extent such Net Cash Proceeds are not Net
Cash Proceeds of Revolving Loan Collateral, the Borrowers shall prepay the Term
Loans in an amount equal to 100% of such Net Cash Proceeds as set forth in Section
2.09(c); provided that the Loan Parties
may retain up to $7,500,000 in the aggregate in any fiscal year of such Net
Cash Proceeds otherwise required to be prepaid, to the extent such Net Cash
Proceeds are reinvested in the Loan Parties’ business within a period not to
exceed one year after the receipt of such proceeds.

 

(ii)           If any Loan Party issues Equity Interests (other than
Excluded Equity Issuances) to any Person other than another Loan Party or any
Indebtedness not otherwise permitted to be incurred hereunder the Borrowers
shall prepay the Term Loans as follows: (A) 100% of such Net Cash Proceeds from
the issuance of such Indebtedness and (B) an amount equal to 50% of such Net
Cash Proceeds from the issuance of Equity Interests (other than Excluded Equity
Issuances); provided that the amount of such prepayment required
pursuant to this clause (ii) shall be reduced to an amount equal to 25%
of such Net Cash Proceeds if the Leverage Ratio on the last day of the most
recently ended Fiscal Quarter was less than or equal to 3.50:1.00; provided
further that no such prepayment will be required pursuant to this clause
(ii) if the Leverage Ratio on the last day of the most recently ended
Fiscal Quarter was less than or equal to 2.25:1.00. Notwithstanding the
foregoing, in the event any Borrower issues Equity Interests to any Person
other than another Loan Party, the Borrowers may elect to reduce the amount
payable pursuant to the preceding sentence by (1) an amount of up to
$50,000,000 over the term of this Agreement so long as they use those proceeds to
repay outstanding Revolving Loans or (2) in the event the aggregate amount of
proceeds that would otherwise be required to be used to repay Loans pursuant to
this clause (ii) since the Effective Date is (X) less than or equal to
$50,000,000, the Borrowers may elect to apply (and if they so elect, they
hereby agree to so apply) up to 50% of such proceeds to

 

28

 

repay Second Lien Term Loans and apply the
remainder to repay Term Loans (which, for the avoidance of doubt, may be
declined by the Lenders and applied to repay Second Lien Term Loans pursuant to
Section 2.09(c)) (Y) in excess of $50,000,000 since the Effective Date,
the Borrowers may elect to apply (and if they so elect, they hereby agree to so
apply) all or any portion of such proceeds to repay Second Lien Term Loans.

 

(iii)          Within 95 days after the close of each fiscal year
(beginning with the close of the 2006 fiscal
year) the Borrowers shall make a mandatory prepayment of the Term Loans in an
amount equal to 50% of the Excess Cash Flow (if any) for such fiscal year; provided
that the amount of such prepayment required pursuant to this clause (iii)
shall be reduced to an amount equal to 25% of the Excess Cash Flow (if any) for
any applicable fiscal year if the Leverage Ratio on the last day of such fiscal
year was less than or equal to 3.50:1.00; provided  further that
no such prepayment will be required pursuant to this clause (iii) for
any applicable fiscal year if the Leverage Ratio on the last day of such fiscal
year was less than or equal to 2.25:1.00. The amount payable pursuant to this clause
(iii) for 2006 will be calculated by using only the actual amount of Excess
Cash Flow generated for December 2006.

 

(c)           Subject to Section 2.16(b) and the Intercreditor
Agreement, all such amounts pursuant to Sections 2.09(b)(i), (ii)
and (iii) shall be applied ratably to prepay Obligations constituting
Term Loans (applied to the scheduled amortization payments thereof in inverse
order of maturity); provided, that in the case of any such prepayment of
the Term Loans made pursuant to Section 2.09(b)(ii), any Lender may
elect not to have such Term Loans prepaid by delivering a notice to the
Administrative Agent at least one Business Day prior to the date that such
prepayment is to be made in which notice such Lender shall decline to have such
Term Loans prepaid with the amounts set forth above, in which case the amounts
that would have been applied to a prepayment of such Lender’s Term Loans may,
at the election of the Administrative Borrower, apply such proceeds to repay
Second Lien Term Loans or be retained by the Borrowers. Prepayments made
pursuant to Section 2.09(a) shall be applied as directed by the
Borrowers.

 

(d)           The Administrative Borrower (on behalf of the Borrowers)
shall notify the Administrative Agent by telephone or email (confirmed promptly
by facsimile or hand delivery) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New York time,
three Business Days before the date of prepayment, or (ii) in the case of
prepayment of an ABR Borrowing, not later than 11:00 a.m., New York time, on
the Business Day immediately prior to the date of prepayment, provided
that the Borrowers shall use commercially reasonable efforts to give one days’
prior notice to the Administrative Agent of any mandatory prepayment of an ABR
Borrowing resulting from any Asset Disposition that yields Net Cash Proceeds in
excess of $5,000,000. Each such notice shall be irrevocable and shall specify
the prepayment date and the principal amount of each Borrowing or portion
thereof to be prepaid Promptly following receipt of any such notice relating to
a Borrowing, the Administrative Agent shall advise the Lenders of the contents
thereof. Each prepayment of a Borrowing shall be accompanied by accrued
interest to the extent required by Section 2.11.

 

29

 

SECTION
2.10       Fees.
(a)  The Borrowers, jointly and
severally, agree to pay to the Administrative Agent, for its own account, fees
payable in the amounts and at the times separately agreed upon between the
Borrowers (or any of them) and the Administrative Agent.

 

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

 

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

 

(b)           The Loans comprising each Eurodollar Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the
Applicable Rate.

 

(c)           Notwithstanding the foregoing clauses (a) and (b), during
the occurrence and continuance of an Event of Default under clause (a) or (b)
of Article VII, the Administrative Agent or the Required Lenders may, at
their option, by notice to the Administrative Borrower (which notice may be
revoked at the option of the Required Lenders notwithstanding any provision of Section
9.02 requiring the consent of “each Lender adversely affected thereby” or “each
Lender directly adversely affected thereby” for reductions in interest rates),
declare that (i) the overdue amount, if any, of the Loans shall bear interest
at 2% per annum plus
the rate otherwise applicable to such Loans as provided in the preceding
subsections of this Section 2.11, or (ii) in the case of any other
overdue amount outstanding hereunder, such overdue amount shall accrue at 2%
per annum plus the
rate applicable to such fee or other obligation as provided hereunder. During
the occurrence and continuance of an Event of Default under clause (g) or (h)
of Article VII, the Borrowers shall automatically be required to
pay interest on overdue amounts at the rates set forth in the previous sentence.
The Borrowers agree that the rates provided for in clauses (i) and (ii) above
appropriately reflect the increased risk to the Lenders during the occurrence
and continuance of an Event of Default and when amounts outstanding hereunder
are overdue, but notwithstanding anything to the contrary contained in this
Agreement, and only in such circumstances and to such extent that the stipulation
for the payment of interest at the rates provided for in such clauses may be
prohibited in any particular jurisdiction by applicable laws, such rates shall
in such circumstances be reduced to the highest rate of interest allowable
under applicable law.

 

(d)           Accrued interest on each Loan shall be payable in arrears
on each Interest Payment Date for such Loan; provided that (i) in
the event of any repayment or prepayment of any Loan, accrued interest on the
principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment (it being understood, that in respect of mandatory
prepayments, the Administrative Agent will allocate such mandatory prepayments
to principal, interest, break funding payments, and other amounts payable hereunder
in accordance with the application of payments provisions set forth herein),
and (ii) in the event of any conversion of any Eurodollar Loan prior to the end
of the current Interest Period therefor, accrued interest on such Loan shall be
payable on the effective date of such conversion.

 

30

 

(e)           All interest hereunder shall be computed on the basis of a
year of 360 days, except that interest computed by reference to the Alternate
Base Rate at times when the Alternate Base Rate is based on the Prime Rate
shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). The applicable Alternate
Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the
Administrative Agent, and such determination shall be conclusive absent
manifest error.

 

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

 

(a)           the Administrative Agent determines (which determination
shall be conclusive absent manifest error) that adequate and reasonable means
do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as
applicable, for such Interest Period; or

 

(b)           the Administrative Agent is advised by the Required
Lenders that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
Interest Period will not adequately and fairly reflect the cost to such Lenders
(or Lender) of making or maintaining their Loans (or its Loan) included in such
Borrowing for such Interest Period; or

 

(c)           there are regulatory or legal reasons which make it
illegal or impermissible for a Lender to make a LIBO Rate Loan, as determined
by such Lender in its sole discretion;

 

then the Administrative Agent shall give notice thereof to the
Administrative Borrower and the Lenders by telephone, email or facsimile as
promptly as practicable thereafter and, until the Administrative Agent notifies
the Administrative Borrower and the Lenders that the circumstances giving rise
to such notice no longer exist, which it shall do promptly upon so determining
or, as applicable, upon being so advised by the Required Lenders, any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective.

 

SECTION
2.13       Increased Costs. (a)  If any Change in Law shall:

 

(i)            impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by, any Lender (except any such reserve
requirement reflected in the Adjusted LIBO Rate); or

 

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

 

and the result of any of the foregoing shall be to increase the cost to
such Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or to
reduce the amount of any sum received or receivable by such Lender hereunder
(whether of principal, interest or otherwise), then the Borrowers jointly and
severally agree to pay to such Lender the additional amount or amounts that
will compensate such Lender for such additional costs incurred or reduction
suffered.

 

31

 

(b)           If any Lender determines in the exercise of its reasonable
judgment that any Change in Law regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s capital or on
the capital of such Lender’s holding company, if any, as a consequence of this
Agreement or the Loans made by such Lender, to a level below that which such
Lender or such Lender’s holding company could have achieved but for such Change
in Law (taking into consideration such Lender’s policies and the policies of
such Lender’s holding company with respect to capital adequacy without
discrimination), then from time to time the Borrowers jointly and severally
agree to pay to such Lender the additional amount or amounts that will
compensate such Lender or such Lender’s holding company for any such reduction
suffered.

 

(c)           A reasonably detailed certificate of a Lender setting
forth the amount or amounts necessary to compensate such Lender or its holding
company, as the case may be, as specified in Section 2.13(a) or (b)
shall be delivered to the Administrative Borrower and shall be conclusive
absent manifest error. Each Borrower jointly and severally agrees to pay such
Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

 

(d)           Failure or delay on the part of any Lender to demand compensation
pursuant to this Section 2.13 shall not constitute a waiver of such
Lender’s right to demand such compensation; provided that no Borrower
shall be required to compensate a Lender pursuant to this Section for any
increased costs or reductions incurred more than 180 days prior to the date
that such Lender notifies the Administrative Borrower of the Change in Law
giving rise to such increased costs or reductions and of such Lender’s
intention to claim compensation therefor; provided
further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 180-day period referred to above shall be
extended to include the period of retroactive effect thereof.

 

(e)           Notwithstanding anything to the contrary contained in this
Agreement, (i) Section 2.13 shall not govern increased costs
relating or attributable to taxes and (ii) all increased costs relating or
attributable to taxes shall be governed solely and exclusively by Section
2.15.

 

SECTION
2.14       Break Funding Payments. Each
Borrower jointly and severally agrees to indemnify each Lender for, and to hold
each Lender harmless from, any loss or expense (other than lost profits) that
such Lender may actually sustain or incur as a consequence of (a) default by
any Borrower in making a borrowing of, conversion into or continuation of
Eurodollar Loans after such Borrower or the Administrative Borrower has given a
notice requesting the same in accordance with the provisions of this Agreement,
(b) default by any Borrower in making any prepayment of or conversion from
Eurodollar Loans after such Borrower or the Administrative Borrower has given a
notice thereof in accordance with the provisions of this Agreement or
(c) the making of a prepayment or conversion of Eurodollar Loans on a day
that is not the last day of an Interest Period with respect thereto. A
reasonably detailed certificate as to (showing in reasonable detail the
calculation of) any amounts payable pursuant to this Section 2.14
submitted to the Administrative Borrower by any Lender shall be conclusive in
the absence of manifest error. This covenant shall survive the termination of
this Agreement and the payment of the Obligations.

 

32

 

SECTION
2.15       Taxes.
(a)  Except as otherwise required
by applicable law, any and all payments by or on account of any obligation of
any Loan Party under this Agreement or any other Loan Document shall be made
free and clear of and without deduction for any Indemnified Taxes; provided
that if any Loan Party shall be required to deduct any Indemnified Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.15(a)), the Administrative
Agent or Lender, as the case may be, receives an amount equal to the sum it
would have received had no such deductions been made, (ii) such Loan Party
shall make such deductions, and (iii) such Loan Party shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.

 

(b)           In addition, the Borrowers shall pay any Other Taxes to
the relevant Governmental Authority in accordance with applicable law.

 

(c)           Subject to Section 2.15(e) below, the Borrowers
shall indemnify the Administrative Agent and each Lender for the full amount of
any Indemnified Taxes and Other Taxes levied, imposed or assessed on (and
whether or not paid directly by) the Administrative Agent or such Lender, as
the case may be, on or with respect to any payment by or on account of any
obligation of any Loan Party under this Agreement or the other Loan Documents
(including Indemnified Taxes imposed or asserted on or attributable to amounts
payable under this Section 2.15) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority (other than those resulting from the
Administrative Agent’s or Lender’s gross negligence or willful misconduct). Payment
under this subsection (c) shall be made within 20 days after the date the
Lender or Administrative Agent makes a written demand therefor accompanied by
either (i) a copy of the receipt issued by a Governmental Authority evidencing
the Lender’s or the Administrative Agent’s payment of such Indemnified Taxes,
interest or penalties, and, if not set forth therein, a certificate prepared in
good faith that describes in reasonable detail the calculation and basis for
such payment or liability or (ii) if the Lender or Administrative Agent
determines that it is unable to provide a copy of such receipt without making
its tax returns available to the Borrowers, a certificate as to the amount of
such payment or liability prepared in good faith and including a description
setting forth in reasonable detail the calculation and basis for such payment
or liability.

 

(d)           As soon as practicable after any payment of Indemnified Taxes
by any Loan Party to a Governmental Authority, such Loan Party shall deliver to
the Administrative Agent the original or a certified copy of a receipt issued
by such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

 

(e)           Any Non-U.S. Lender that is entitled to an exemption from
or reduction of withholding tax under the law of the United States, or any
treaty to which the United States is a party, with respect to payments under
this Agreement shall deliver to the Administrative Borrower (with a copy to the
Administrative Agent), after the Non-U.S. Lender (or its assignee, if any)
becomes a party to this Agreement, and in the case of a Participant who
complies with this Section 2.15 in accordance with Section 9.04,
after the date on which such

 

33

 

person becomes a Participant, or in each case
when reasonably requested by the Administrative Borrower, two accurate and duly
signed completed copies of United States Internal Revenue Service Forms W-8ECI,
W-8BEN, W-8IMY (as applicable) and such other properly completed and executed
documentation prescribed by applicable law or reasonably requested by the
Administrative Borrower as will permit such payments to be made without
withholding or at a reduced rate. Any Lender that is a United States person as
defined in section 7701(a)(30) of the Code, including any Lender’s assignee
that is a United States person, shall deliver to the Administrative Borrower
(with a copy to the Administrative Agent) a statement signed by an authorized
signatory of the Lender (or assignee) that it is a United States person and, if
necessary to avoid U.S. backup withholding, a duly completed and signed
Internal Revenue Services Form W-9 (or successor form) establishing that the
Lender (or assignee) is organized under the laws of the United States and is
not subject to backup withholding.

 

(f)            If the Administrative Agent or a Lender determines, in
its sole discretion, that it has received a refund of any Indemnified Taxes or
Other Taxes as to which it has been indemnified by the Loan Parties or with
respect to which the Loan Parties have paid additional amounts pursuant to Section
2.15(a) or Section 2.15(c), it shall pay over such refund to the
Loan Parties (but only to the extent of indemnity payments made, or additional
amounts paid, by the Loan Parties under this Section 2.15 with respect
to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent or such Lender and without
interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund); provided, that the Loan Parties, upon the
request of the Administrative Agent or such Lender, agree jointly and severally
to repay the amount paid over to the Loan Parties (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the Administrative
Agent or such Lender in the event the Administrative Agent or such Lender is
required to repay such refund to such Governmental Authority, provided
that the Loan Parties shall not be obligated to repay an amount in excess of
the amount they received from such Administrative Agent or Lender under this
Section. This Section 2.15 shall not be construed to require the
Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to any
Borrower or any other Person.

 

(g)           Notwithstanding anything to the contrary contained in this
Agreement, each Lender agrees (i) that as between it and the Borrowers or the
Administrative Agent, it shall be the person to deduct and withhold taxes, and
to the extent required by law it shall deduct and withhold taxes, on amounts
that such Lender may remit to any other person(s) by reason of the sale of any
participation (including, for the avoidance of doubt, any attempted assignment
or transfer that does not comply with Section 9.04(b) and thus is
treated as a participation under this Agreement) by such Lender that the
Borrowers do not have actual knowledge of and should not reasonably know about
and (ii) to severally and not jointly indemnify the Borrowers and the
Administrative Agent and any officers, directors, agents or employees of the
Borrowers or the Administrative Agent, and to hold them harmless from, any tax,
interest, additions to tax, penalties, reasonable fees or payments arising from
the assertion by any applicable Governmental Authority of any claim against
them relating to the failure to withhold taxes as required by applicable law
with respect to amounts described in clause (i) of this paragraph (g).

 

34

 

(h)           Each assignee of a Lender’s interest in this Agreement in
conformity with Section 9.04 shall be bound by this Section 2.15,
so that such assignee will have all of the obligations and provide all of the
forms and statements and all indemnities, representations and warranties
required to be given under this Section 2.15.

 

SECTION
2.16       Payments Generally;
Allocation of Proceeds; Sharing of Set-offs. (a)  The Borrowers shall make each payment
required to be made by them hereunder (whether of principal, interest or fees,
or of amounts payable under Section 2.13, 2.14 or 2.15, or
otherwise) prior to 1:00 p.m., New York time, on the date when due, in
immediately available funds, without set off or counterclaim. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at 1585 Broadway, New
York, New York 10036. Unless otherwise expressly provided in a Loan Document,
all payments by the Borrowers pursuant to each Loan Document shall be made by
the Borrowers to the Administrative Agent for the pro  rata account
of the Secured Parties entitled to receive such payment. The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt thereof. If
any payment hereunder shall be due on a day that is not a Business Day, the
date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable
for the period of such extension. All payments hereunder shall be made in
dollars. Solely for purposes of determining the amount of Loans available for
borrowing purposes, checks and cash or other immediately available funds from
collections of items of payment and proceeds of any Collateral shall be applied
in whole or in part against the Obligations, on the day of receipt, subject to
actual collection.

 

(b)           Any proceeds of Collateral received by the Administrative
Agent in its capacity as such (i) not constituting either (A) a specific
payment of principal, interest, fees or other sum payable under the Loan
Documents, or (B) a mandatory prepayment (which shall be applied in accordance
with Section 2.09), or (ii) after an Event of Default has occurred and
is continuing, such funds shall be applied ratably, subject to the
Intercreditor Agreement, first, to pay any fees, indemnities, or expense
reimbursements related to the Term Loans, including amounts then due to the
Administrative Agent from the Borrowers (other than in connection with Swap
Obligations), second, to pay any fees or expense reimbursements then due
to the Lenders from the Borrowers (other than in connection with Swap
Obligations), third, to pay interest then due and payable on the Loans, fourth,
to the payment of principal on the Loans and to payment of any amounts owing
with respect to Swap Obligations, fifth, to the payment of any other
Obligation due to the Administrative Agent or any Lender by the Borrowers, sixth,
to payment of amounts owing pursuant to the Second Lien Term Loan Credit
Agreement and seventh, to prepay amounts pursuant to the Revolving
Credit Agreement. Notwithstanding anything to the contrary contained in this
Agreement, unless so directed by the Administrative Borrower, or unless a
Default is in existence, neither the Administrative Agent nor any Lender shall
apply any payment which it receives to any Eurodollar Loan, except (a) on the
expiration date of the Interest Period applicable to any such Eurodollar Loan,
or (b) in the event, and only to the extent, that there are no outstanding ABR
Loans and, in any event, the Borrowers shall pay the break funding payment
required in accordance with Section 2.14.

 

35

 

(c)           At the election of the Administrative Agent, all payments
of principal, interest, fees, premiums, reimbursable expenses (including,
without limitation, all documented reimbursement for fees and expenses pursuant
to Section 9.03), and other documented sums payable under the Loan
Documents, may be deducted from any deposit account of any Borrower maintained
with the Administrative Agent. The Borrowers hereby irrevocably authorize the
Administrative Agent to charge any deposit account of any Borrower maintained
with the Administrative Agent for each payment of principal, interest and fees
as it becomes due hereunder or any other miscellaneous expenses due under the
Loan Documents.

 

(d)           Unless the Administrative Agent shall have received notice
from the Administrative Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders hereunder that the
Borrowers will not make such payment, the Administrative Agent may assume that
the Borrowers have made such payment on such date in accordance herewith and
may, in reliance upon such assumption, distribute to the Lenders the amount due.
In such event, if the Borrowers have not in fact made such payment, then each
of the Lenders severally agrees to repay to the Administrative Agent forthwith
on demand the amount so distributed to such Lender with interest thereon, for
each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of
the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation.

 

(e)           If any Lender shall fail to make any payment required to
be made by it pursuant to 2.16(d) or 9.03(c), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Lender to satisfy such Lender’s obligations under
such Sections until all such unsatisfied obligations are fully paid.

 

SECTION
2.17       Mitigation Obligations;
Replacement of Lenders. If any Lender requests compensation under Section
2.13 or Section 2.14, or if the Borrowers are required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.15, then:

 

(a)           such Lender shall use reasonable efforts to designate a
different lending office for funding or booking its Loans hereunder or to
assign its rights and obligations hereunder to another of its offices, branches
or affiliates, if, in the reasonable judgment of such Lender, such designation
or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.13,
2.14 or 2.15, as the case may be, in the future, and (ii) would
not subject such Lender to any material unreimbursed cost or expense and would
not otherwise be disadvantageous to such Lender;

 

(b)           the Administrative Borrower may, at the sole expense and
effort of the Borrowers, require such Lender or any Defaulting Lender (such
Lender or Defaulting Lender herein, a “Departing Lender”), upon notice
to the Departing Lender and the Administrative Agent, to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained
in Section 9.04), all its interests, rights and obligations under this
Agreement to an Eligible Assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided
that (i) the Administrative

 

36

 

Borrower shall have received the prior
written consent of the Administrative Agent, which consent shall not
unreasonably be withheld, (ii) the Departing Lender shall have received payment
of an amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrowers (in the case of all other amounts), and (iii) in the
case of any such assignment resulting from a claim for compensation under Section
2.13, Section 2.14 or payments required to be made pursuant to Section
2.15, such assignment will result in a reduction in such compensation or
payments. A Departing Lender shall not be required to make any such assignment
and delegation if, prior thereto, such Departing Lender shall have taken action
under Section 2.17(a), within the requirements of Section 2.17(a),
necessary to eliminate the continued need for payment of amounts owing pursuant
to Section 2.13, 2.14 or 2.15.

 

SECTION
2.18       Indemnity for Returned
Payments. If after receipt of any payment which is applied to the payment
of all or any part of the Obligations, the Administrative Agent or any Lender
is for any reason compelled to surrender such payment or proceeds to any Person
because such payment or application of proceeds is invalidated, declared
fraudulent, set aside, determined to be void or voidable as a preference,
impermissible setoff, or a diversion of trust funds, then the Obligations or
part thereof intended to be satisfied shall be revived and continued and this
Agreement shall continue in full force as if such payment or proceeds had not
been received by the Administrative Agent or such Lender and the Borrowers
shall be jointly and severally liable to pay to the Administrative Agent and
the Lenders, and the Borrowers hereby jointly and severally indemnify the
Administrative Agent and the Lenders and holds the Administrative Agent and the
Lenders harmless for the amount of such payment or proceeds surrendered. The
provisions of this Section 2.18 shall be and remain effective
notwithstanding any contrary action which may have been taken by the
Administrative Agent or any Lender in reliance upon such payment or application
of proceeds, and any such contrary action so taken shall be without prejudice
to the Administrative Agent’s and the Lenders’ rights under this Agreement and
shall be deemed to have been conditioned upon such payment or application of
proceeds having become final and irrevocable. The provisions of this Section
2.18 shall survive the termination of this Agreement.

 

SECTION
2.19       Joint and Several Liability
of the Borrowers. (a) 
Notwithstanding anything in this Agreement or any other Loan Document to
the contrary, each of the Borrowers hereby accepts joint and several liability
hereunder and under the other Loan Documents in consideration of the financial
accommodations to be provided by the Administrative Agent and the other Secured
Parties under this Agreement and the other Loan Documents, for the mutual
benefit, directly and indirectly, of each of the Loan Parties and in
consideration of the undertakings of the other Borrowers to accept joint and
several liability for the Obligations and of the Subsidiary Guarantors to
guarantee the Obligations. Each of the Borrowers, jointly and severally, hereby
irrevocably and unconditionally accepts, not merely as a surety but also as a
co-debtor, joint and several liability with the other Borrowers, with respect
to the payment and performance of all of the Obligations (including, without
limitation, any Obligations arising under this Section 2.19), it being
the intention of the parties hereto that all of the Obligations shall be the
joint and several obligations of each of the Borrowers without preferences or
distinction among them. If and to the extent that any of the Borrowers shall
fail to make any payment with respect to any of the Obligations as and when due
or to perform any of the

 

37

 

Obligations in accordance with
the terms thereof, then in each such event, the other Borrowers will make such
payment with respect to, or perform, such Obligation. Subject to the terms and
conditions hereof, the Obligations of each of the Borrowers under the
provisions of this Section 2.19 constitute the absolute and
unconditional, full recourse Obligations of each of the Borrowers, enforceable
against each such Person to the full extent of its properties and assets,
irrespective of the validity, regularity or enforceability of this Agreement,
the other Loan Documents or any other circumstances whatsoever.

 

(b)           The provisions of this Section 2.19 are made for
the benefit of the Administrative Agent, the other Secured Parties and their
respective successors and assigns permitted hereby, and may be enforced by them
from time to time against any or all of the Borrowers as often as occasion
therefor may arise and without requirement on the part of the Administrative
Agent, the other Secured Parties or such successors or assigns first to marshal
any of its or their claims or to exercise any of its or their rights against
any of the other Borrowers or to exhaust any remedies available to it or them
against any of the other Borrowers or to resort to any other source or means of
obtaining payment of any of the Obligations hereunder or to elect any other
remedy. The provisions of this Section 2.19 shall remain in effect until
all of the Obligations shall have been paid in full, including the payment in
full in cash of each Loan and all fees payable hereunder.

 

(c)           Each of the Borrowers hereby agrees that it will not
enforce any of its rights of contribution or subrogation against the other
Borrowers with respect to any liability incurred by it hereunder or under any
of the other Loan Documents, any payments made by it to the Administrative
Agent or the other Secured Parties with respect to any of the Obligations, or
any Collateral, until such time as the Obligations (other than Unliquidated
Obligations) shall have been paid in full, including the payment in full in
cash of each Loan and all fees payable hereunder, the payment in full in cash,
or the cash collateralization or making of other arrangements pursuant to Section
9.02(d), of all Swap Obligations, and this Agreement shall have been
terminated. Any claim which any Borrower may have against any other Borrower
with respect to any payments to the Administrative Agent or any other Secured
Party hereunder or under any other Loan Documents is hereby expressly made
subordinate and junior in right of payment, without limitation as to any
increases in the Obligations arising hereunder or thereunder, to the prior
payment in full in cash of the Obligations.

 

ARTICLE III

 

Representations and Warranties

 

Each Borrower represents and warrants to the Administrative Agent and
the Lenders that:

 

SECTION
3.01       Organization; Powers. Each
of the Loan Parties and each of their subsidiaries is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization or formation, has not filed any certificates of domestication,
transfer or continuance in any other jurisdiction, has all requisite power and
authority to carry on its business as now conducted and is qualified to do
business in, and is in good standing in, every jurisdiction where such
qualification is required, except where failure to be so qualified and in

 

38

 

good standing, individually or
in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

 

SECTION
3.02       Authorization;
Enforceability. The Transactions are within each Loan Party’s corporate or
other organizational powers and have been duly authorized by all necessary
corporate or other organizational and, if required, stockholder action. The
Loan Documents to which each Loan Party is a party have been duly executed and
delivered by such Loan Party and constitute a legal, valid and binding
obligation of such Loan Party, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law.

 

SECTION
3.03       Governmental Approvals; No
Conflicts. The Transactions (a) do not require any consent or approval of,
registration or filing with, or any other action by, any Governmental Authority
or any other Person, except such as have been obtained or made and are in full
force and effect, (b) will not violate any applicable law or regulation or any
order of any Governmental Authority, except as could not reasonably be expected
to have a Material Adverse Effect, (c) will not violate the charter, by-laws or
other organizational documents of any Loan Party or any of its subsidiaries,
(d) will not violate or result in a default under any indenture, agreement or
other instrument binding upon any Loan Party or any of its subsidiaries or its assets,
or give rise to a right thereunder to require any payment to be made by any
Loan Party or any of its subsidiaries, except as could not reasonably be
expected to have a Material Adverse Effect, and (e) will not result in the
creation or imposition of any Lien on any asset of any Loan Party or any of its
subsidiaries (other than Liens permitted pursuant to Sections 6.02(f)
and (g)).

 

SECTION
3.04       Financial Condition; No
Material Adverse Change

 

(a)           The Pro Forma Information (including the notes thereto),
copies of which have heretofore been furnished to each Lender, has been
prepared giving effect (as if such events had occurred on September 30, 2006)
to (i) consummation of the Transactions, (ii) the Loans and other extensions of
credit hereunder to be made on the Effective Date and the use of proceeds
thereof and (iii) the payment of fees and expenses in connection with the
foregoing but excludes the impact of Special Recognition Bonus 2A and Special
Recognition Bonus 2B. The Pro Forma Information has been prepared based on the
best information available to the Loan Parties as of the date of delivery
thereof, and presents a good faith estimate of the pro forma financial
condition of Parent and its Subsidiaries as at September 30, 2006, assuming
that the events specified in the preceding sentence had actually occurred at
such date, subject, to finalization of working capital calculations and
purchase price allocations under GAAP with respect to the IBR Plasma Asset
Purchase.

 

(b)           The financial statements heretofore furnished to the
Lenders by the Loan Parties pursuant to Section 4.01(j)(ii) present
fairly, in all material respects, the financial position and results of
operations and cash flows of the Parent and its Subsidiaries, as applicable, as
of such dates and for such periods presented therein, and have been prepared in
accordance with GAAP (subject to the proviso at the end of this clause) except
as otherwise indicated in Section 4.01(j)(ii); subject to year end audit
adjustments and the absence of footnotes and, with regard to the income
statement referred to in Section 4.01(j)(ii), the absence of the
corresponding

 

39

 

balance sheet and statement of cash flows, provided
that, with respect to any unaudited predecessor financial statements prepared
by Bayer, such financial statements were, to the best of Parent’s knowledge
after due inquiry, prepared in accordance with GAAP except as otherwise
indicated in Section 4.01(j)(ii).

 

(c)           The Projections have been prepared in good faith based
upon assumptions believed to be reasonable by the Borrowers at the time of
preparation thereof.

 

(d)           Since December 31, 2005, there has been no change in the
Parent and its Subsidiaries, taken as a whole, which could reasonably be
expected to have a Material Adverse Effect.

 

SECTION
3.05       Properties. (a)  As of the Effective Date and after giving
effect to the consummation of the Transactions, Schedule 3.05 sets forth
a correct and complete list of all real property owned or leased by each Loan
Party. Except as could not reasonably be expected to have a Material Adverse
Effect, each of such leases and subleases is valid and enforceable in
accordance with its terms and is in full force and effect, and no default by
any Loan Party or, to the knowledge of the Loan Parties, any other Person party
to any such lease or sublease exists. Except as set forth on Schedule 3.05,
each of the Loan Parties and each of their subsidiaries has good title to, or
valid leasehold interests in, all its real and personal property, or otherwise
has the rights it purports to have in any Loan Document or in any certificate
or financial statement furnished pursuant to this Agreement or any Loan
Document in each item of Collateral, free of all Liens other than those
permitted by Section 6.02.

 

(b)           Each Loan Party owns, or is licensed to use, (i) all U.S.
and Canadian trademarks, tradenames, copyrights, patents and other intellectual
property that are, individually or collectively, necessary to the conduct of
the Loan Parties’ business as it is operated on the date hereof, and (ii)
except as could not reasonably be expected to have a Material Adverse Effect,
all other trademarks, tradenames, copyrights, patents and other intellectual
property that are, individually or collectively, necessary to the conduct of
the Loan Parties’ business, a correct and complete list of all of which U.S.,
Canadian, and other trademarks, tradenames, copyrights, patents and other
intellectual property, as of the Effective Date and after giving effect to the
consummation of the Transactions, is set forth on Schedule 3.05, the use
of any thereof by the Loan Parties does not infringe in any material respect
upon the rights of any other Person, and except as could not reasonably be
expected to result in a Material Adverse Effect, the Loan Parties’ rights
thereto are not subject to any licensing agreement or similar arrangement.

 

(c)           Each Loan Party has good and indefeasible title in fee
simple to the real property identified on Schedule 3.05 as owned by such
Loan Party, or valid leasehold interests in all material real property
designated therein as “leased” by such Loan Party, in each case other than
properties disposed of in a manner not otherwise prohibited by the Loan
Documents.

 

SECTION
3.06       Litigation and Environmental
Matters. (a)  There are no actions,
suits or proceedings by or before any arbitrator or Governmental Authority
pending against or, to the knowledge of any Loan Party, threatened against or
affecting any Loan Party (i) as to which

 

40

 

there is a reasonable
possibility of an adverse determination and that, if adversely determined,
could reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect, (ii) that involve this Agreement or any other Loan
Document, or (iii) that otherwise involve the Transactions as to which there is
a reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected to have an adverse effect on any of
the Secured Parties.

 

(b)           (i)            No
Loan Party has received notice of any claim with respect to any Environmental
Liability or knows of any basis for any Environmental Liability that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect, and (ii) and except with respect to any other matters
that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect, no Loan Party (1) has failed to comply
with any Environmental Law or to obtain, maintain or comply with any permit,
license or other approval required under any Environmental Law or (2) has
become subject to any Environmental Liability.

 

SECTION
3.07       Compliance with Laws; No
Default. Each of the Loan Parties is in compliance with all laws,
regulations and orders of any Governmental Authority applicable to it or its
property, except where the failure to do so could not reasonably be expected to
result in a Material Adverse Effect. No Default has occurred and is continuing.

 

SECTION
3.08       Investment and Holding
Company Status. Neither the Loan Parties nor any of their subsidiaries is
an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940.

 

SECTION
3.09       Taxes.
Each of the Loan Parties has filed or caused to be filed all U.S. and
Canadian federal income and other material tax returns and reports required to
have been filed and has paid or caused to be paid all U.S. and Canadian federal
and other material taxes required to have been paid by it, except (a) taxes
that are being contested in good faith by appropriate proceedings and for which
the Loan Parties have set aside on their books adequate reserves in accordance
with GAAP or (b) to the extent that the failure to do so would not in the
aggregate reasonably be expected to have a Material Adverse Effect. No tax
liens have been filed, except liens for taxes not yet due and payable or that
are being contested in compliance with Section 5.04, and no claims are
being asserted with respect to any material amount of taxes, except claims that
are being contested in compliance with Section 5.04.

 

SECTION
3.10       ERISA.
No ERISA Event has occurred or is reasonably expected to occur that,
when taken together with all other such ERISA Events for which liability is
reasonably expected to occur, could reasonably be expected to result in a
Material Adverse Effect. The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the date of
the most recent financial statements reflecting such amounts, exceed by more
than $1,000,000 the fair market value of the assets of such Plan, and the present
value of all accumulated benefit obligations of all underfunded Plans (based on
the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $1,000,000 the fair
market value of the assets of all such underfunded Plans.

 

41

 

SECTION
3.11       Disclosure. Neither the
Information Memorandum nor any of the other reports, financial statements,
certificates or other written information (other than third party reports not
prepared under the control of the Loan Parties) furnished by or on behalf of
any Loan Party to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement or delivered hereunder (as modified or
supplemented by other information so furnished), taken as a whole, contains any
material misstatement of fact or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made (including customary practices in the loan syndication market) not
misleading; provided that, with respect to projected financial
information, the Borrowers represent only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time.

 

SECTION
3.12       Material Agreements. No
Loan Party is in default in the performance, observance or fulfillment of any
of the obligations, covenants or conditions contained in (i) any Material
Contract to which it is a party or (ii) any agreement or instrument evidencing
or governing Indebtedness, except matters that could not reasonably be expected
to have a Material Adverse Effect.

 

SECTION
3.13       Solvency. (a)  Immediately after the consummation of the
Transactions and immediately following the making of each Borrowing made on the
date hereof and after giving effect to the application of the proceeds of such
Borrowing, (i) the fair value of the assets of each Loan Party, at a fair
valuation, will exceed the debts and liabilities, subordinated, contingent or
otherwise, of each Loan Party; (ii) the present fair saleable value of the
property of each Loan Party will be greater than the probable liability of each
Loan Party on its debts and other liabilities, subordinated, contingent or
otherwise, as such debts and other liabilities become absolute and matured;
(iii) each Loan Party will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured; and (iv) each Loan Party will have reasonably sufficient
capital with which to conduct the businesses in which it is engaged as such
businesses are now conducted and are proposed to be conducted after the date hereof.

 

(b)           No Loan Party intends to, or will permit any of its
subsidiaries to, and believes that it or any of its subsidiaries will, incur
debts beyond its ability to pay such debts as they mature, taking into account
the timing of and amounts of cash to be received by it or any such subsidiary
and the timing of the amounts of cash to be payable on or in respect of its
Indebtedness or the Indebtedness of any such subsidiary.

 

SECTION
3.14       Reportable Transaction. The
Borrowers do not intend to treat the Borrowings and related transactions as
being a “reportable transaction” (within the meaning of Treasury Regulation
Section 1.6011-4). In the event any Borrower determines to take any action
inconsistent with such intention, it will promptly notify the Administrative
Agent thereof.

 

SECTION
3.15       Capitalization and
Subsidiaries. Schedule 3.15 sets forth as of the Effective Date and
after giving effect to the consummation of the Transactions (a) a correct and
complete list of the name and relationship to each Loan Party of each and all
of each Loan Party’s subsidiaries, (b) a true and complete listing of each
class of each of Parent’s authorized Equity Interests, of which all of such
issued shares are validly issued, outstanding, fully paid and

 

42

 

non-assessable, and owned
beneficially and of record by the Persons identified on Schedule 3.15,
and (c) the type of entity of each of the Loan Parties and each of their
subsidiaries. All of the issued and outstanding Equity Interests owned by any
Loan Party have been (to the extent such concepts are relevant with respect to
such ownership interests) duly authorized and issued and are fully paid and non
assessable.

 

SECTION
3.16       Common Enterprise. Each
Loan Party expects to derive benefit (and its board of directors or other
governing body has determined that it may reasonably be expected to derive
benefit), directly and indirectly, from (i) successful operations of each of
the other Loan Parties, and (ii) the credit extended by the Lenders to the
Borrowers hereunder, both in their separate capacities and as members of the
group of companies. Each Loan Party has determined that execution, delivery,
and performance of this Agreement and any other Loan Documents to be executed by
such Loan Party is within its purpose, will be of direct and indirect benefit
to such Loan Party, and is in its best interest.

 

SECTION
3.17       Security Interest in
Collateral. (a) The provisions of this Agreement and the other Loan
Documents create legal and valid Liens on all the Collateral in favor of the
Administrative Agent, for the benefit of the Administrative Agent and the
Secured Parties, and such Liens constitute perfected and continuing Liens on
the Collateral, securing the Obligations, enforceable against the applicable
Loan Party and all third parties, and having priority over all other Liens on
the Collateral except in the case of (i) Permitted Encumbrances, to the extent
any such Permitted Encumbrances would have priority over the Liens in favor of
the Administrative Agent pursuant to any applicable law or agreement, (ii)
Liens perfected only by possession (including possession of any certificate of
title) to the extent the Administrative Agent has not obtained or does not
maintain possession of such Collateral, (iii) Liens in favor of the Revolving
Lenders with respect to the Revolving Loan Collateral and (iv) Liens in favor
of the Second Lien Term Loan Lenders with respect to the Term Loan Collateral.

 

(b)           The provisions of this Agreement and the other Loan
Documents create legal and valid Liens on all the Revolving Loan Collateral in
favor of the Administrative Agent, for the benefit of the Administrative Agent
and the Secured Parties, and such Liens constitute perfected and continuing
Liens on the Revolving Loan Collateral, securing the Obligations, enforceable
against the applicable Loan Party and all third parties, and having priority
over all other Liens on the Revolving Loan Collateral except (a) Liens in favor
of the Revolving Lenders, (b) in the case of Permitted Encumbrances, to the
extent any such Permitted Encumbrances would have priority over the Liens in
favor of the Administrative Agent pursuant to any applicable law or agreement,
and (c) Liens perfected only by possession (including possession of any
certificate of title) to the extent the Administrative Agent has not obtained
or does not maintain possession of such Revolving Loan Collateral.

 

SECTION
3.18       Labor Disputes. As of
the Effective Date and after giving effect to the consummations of the
Transactions (a) there is no collective bargaining agreement or other
comparable labor contract covering employees of any of the Loan Parties or any
of their subsidiaries, (b) no union or other labor organization is seeking to
organize, or to be recognized as, a collective bargaining unit of employees of
any of the Loan Parties or any of their subsidiaries or for any similar
purpose, and (c) except as could not reasonably be expected to have a Material
Adverse Effect, there is no pending or (to the best of the Borrowers’
knowledge)

 

43

 

threatened, strike, work
stoppage, unfair labor practice claim, or other labor dispute against or
affecting any of the Loan Parties or any of their subsidiaries or their
employees.

 

SECTION
3.19       Broker’s and Transaction
Fees. No Loan Party has any obligation to any Person in respect of any
finder’s, broker’s or investment banker’s fees in connection with the
Transactions, except for fees paid to the Administrative Agent or the Lenders
in connection therewith and fees paid in connection with the Revolving Loan
Documents and Second Lien Indebtedness Documents that have been disclosed to
the Administrative Agent.

 

SECTION
3.20       Compliance with FDA Laws and
Regulations. Each Loan Party is in substantial compliance with laws,
regulations, and orders of the FDA and any equivalent regulatory body in any
other jurisdiction with respect to its business (including the Plasma Protein
Therapeutic Business), except where the failure to do so could not reasonably
be expected to result in a Material Adverse Effect.

 

ARTICLE IV

 

Conditions

 

SECTION
4.01       Effective Date. The
obligations of the Lenders to make Loans hereunder shall not become effective
until the date on which each of the following conditions is satisfied (or
waived in accordance with Section 9.02):

 

(a)           The Administrative Agent (or its counsel) shall have
received from each party hereto either (i) a counterpart of this Agreement
signed on behalf of such party or (ii) written evidence satisfactory to the
Administrative Agent (which may include facsimile transmission of a signed
signature page of this Agreement) that such party has signed a counterpart of
this Agreement.

 

(b)           The Administrative Agent shall have received duly executed
copies of the other Loan Documents and such other certificates, documents,
instruments and agreements as the Administrative Agent shall reasonably request
in connection with the transactions contemplated by this Agreement and the
other Loan Documents (each as specified on the Closing Checklist), including
written opinions of the Borrowers’ counsel, addressed to the Administrative
Agent and the Lenders in form and substance acceptable to the Administrative
Agent, and each other item listed in the Closing Checklist as being required to
be delivered on the Effective Date, each in form and substance reasonably
satisfactory to Administrative Agent.

 

(c)           The Administrative Agent shall have received the Effective
Date Certificate, dated as of the Effective Date and duly executed and
delivered by an Authorized Officer of the Administrative Borrower, in which
certificate the Borrowers shall agree and acknowledge that the statements made
therein shall be deemed to be true and correct representations and warranties
of each of the Borrowers as of such date, and, at the time each such
certificate is delivered, such statements shall in fact be true and correct in
all material respects (provided, that representations and warranties
which have materiality or Material Adverse Effect qualifiers shall be true and
correct in all respects to the extent such materiality or Material Adverse
Effect qualifier is applicable thereto).

 

44

 

(d)           [INTENTIONALLY OMITTED];

 

(e)           The Administrative Agent shall have received duly executed
copies of the Revolving Loan Documents and the Second Lien Term Loan Documents
and be reasonably satisfied that the Borrowers have borrowed no more than
$71,800,000 of Revolving Loans (of which $1,800,000 will be used to cash
collateralize letters of credit which shall be replaced with Letters of Credit
within 10 Business Days of the Effective Date) and $330,000,000 of Second
Lien Term Loans on the Effective Date.

 

(f)            All governmental and material third party approvals
necessary in connection with the Transactions shall have been obtained and be
in full force and effect except to the extent the failure to obtain any such
approval could not reasonably be expected to have a Material Adverse Effect.

 

(g)           After giving effect to all Borrowings to be made on the
Effective Date and payment of all fees and expenses due hereunder on the
Effective Date, and with all of the Borrowers’ indebtedness, liabilities, and
obligations current, the Borrowers’ Leverage Ratio calculated based on Adjusted
EBITDA for the twelve months ended as of September 30, 2006 and Total Debt as
of the Effective Date (after giving effect to the Transactions) shall not be
more than 5.00:1.00.

 

(h)           The Administrative Agent and the Joint Lead Arrangers
shall have received all fees and other amounts due and payable on or prior to
the Effective Date (including fees and expenses of counsel for the Joint Lead
Arrangers), including, to the extent invoiced, reimbursement or payment of all
reasonable, out of pocket expenses required to be reimbursed or paid by the
Borrowers hereunder.

 

(i)            The Borrowers shall have delivered to the Administrative
Agent a notice setting forth the deposit account of the Borrowers (the “Funding
Account”) to which the Lenders are initially authorized by the Borrowers to
transfer the proceeds of any Borrowings requested or authorized pursuant to
this Agreement.

 

(j)            (i) The Administrative Agent shall be reasonably
satisfied with the form of quarterly pro forma consolidated and consolidating
profit and loss statements, balance sheets and cash flow projections (including
detailed capital expenditures) for the first full year after the Effective Date
for the Borrowers and their subsidiaries, and on an annual basis thereafter for
the next four years (the “Pro Forma Information”), and such Pro Forma
Information, taken as a whole, shall not be inconsistent in a material and
adverse manner with any pro forma information or projections previously delivered
to the Administrative Agent. The Pro Forma Information shall have been prepared
based upon good faith estimates and assumptions believed by the Borrowers to be
reasonable at the time made and shall contain adequate text explaining the
significant assumptions on which they were based.

 

(ii) The Borrowers shall have delivered to
the Administrative Agent (x) the Borrowers’ audited consolidated balance
sheet as of December 31, 2005 and the related statements of income,
stockholders’ equity and cash flows for the period from March 31, 2005 through
December 31, 2005 prepared in accordance with GAAP consistently applied (y)
Bayer

 

45

 

Plasma Products Business Group (“Predecessor”) audited
consolidated combined balance sheets as of December 31, 2004 and 2003 and
related statements of operations, Parent’s net investment and cash flows for
the years then ended and the Predecessor unaudited combined balance sheet
at March 31, 2005 and related statements of operations, Parent’s net investment
and cash flows for the three month period then ended, all prepared in
accordance with GAAP consistently applied, except for the exclusion of
litigation costs and income taxes from those combined financial statements and
(z) the Borrowers’ unaudited consolidated balance sheets and related statements
of income, stockholders’ equity and cash flows for (1) each subsequent Fiscal
Quarter ended 30 days before the Effective Date and (2) each fiscal month after
the most recent Fiscal Quarter for which financial statements were received by
the Lenders as described above and ended 30 days before the Effective Date.

 

(k)           The Borrowers shall have delivered to the Administrative
Agent evidence of insurance with respect to the Borrowers customary for
similarly situated companies, in form and substance reasonably satisfactory to
the Administrative Agent, including reasonably satisfactory endorsements naming
the Administrative Agent as mortgagee, loss payee or additional insured, as
applicable, on all such policies.

 

(l)            The Borrowers shall have delivered to the Administrative
Agent a solvency certificate in form and substance reasonably satisfactory to
the Administrative Agent executed by the chief financial officer of the
Administrative Borrower (or another Financial Officer of the Administrative
Borrower acceptable to the Administrative Agent), on behalf of the Borrowers
and each of their subsidiaries.

 

(m)          [INTENTIONALLY OMITTED]

 

(n)           Within five Business Days’ prior to the Effective Date, the
Lenders or the Administrative Agent shall have received copies of all Patriot
Act Disclosures as reasonably requested by the Lenders or the Administrative
Agent.

 

(o)           The Administrative Agent shall have received counterparts
of each Subsidiary Guaranty, dated as of the Effective Date, duly executed and
delivered by an Authorized Officer of each party thereto.

 

(p)           All UCC financing statements or other similar financing
statements and UCC (Form UCC-3) termination statements (collectively, the “Filing
Statements”) required pursuant to the Loan Documents shall have been
delivered by counsel to the Administrative Agent to CT Corporation System or
another similar filing service company acceptable to the Administrative Agent
(the “Filing Agent”). The Filing Agent shall have acknowledged in a
writing satisfactory to the Administrative Agent and its counsel (i) the Filing
Agent’s receipt of all Filing Statements, (ii) that the Filing Statements
required pursuant to the Loan Documents, have either been submitted for filing
in the appropriate filing offices or will be submitted for filing in the
appropriate offices within ten days following the Effective Date and (iii) that
the Filing Agent will notify the Administrative Agent and its counsel of the
results of such submissions and will provide recorded copies of the same within
30 days following the Effective Date.

 

46

 

(q)           The Borrowers shall have obtained (i) a Corporate Rating
and Corporate Family Rating, as applicable (of any level) and (ii) a senior
secured debt rating (of any level) in respect of the Loans, in each case from
each of S&P and Moody’s, which ratings (of any level) shall remain in
effect on the Effective Date.

 

The Administrative Agent shall notify the Administrative Borrower and
the Lenders of the Effective Date, and such notice shall be conclusive and
binding.

 

ARTICLE V

 

Affirmative Covenants

 

Until the Term Loan Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall
have been paid in full, the Borrowers each covenant and agree with the
Administrative Agent and the Lenders that:

 

SECTION
5.01       Financial Statements and
Other Information. The Borrowers will furnish to the Administrative Agent
(for delivery to each Lender):

 

(a)           within the earlier of (i) 120 days after the end of each
fiscal year and (ii) so long as any Borrower is a public reporting company at
such time, such earlier date as the SEC requires the filing of such information
(or if any Borrower is required to file such information on a Form 10-K with
the SEC, promptly following such filing), their audited consolidated and
unaudited consolidating balance sheet and related statements of operations, and
consolidated cash flows, in each case as of the end of and for such year,
setting forth in each case (commencing with the fiscal year ended December 31,
2007) in comparative form the figures for the previous fiscal year, all
reported on (except with regard to consolidating financial statements) by
independent public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such consolidated
financial statements present fairly in all material respects the financial
condition and results of operations of the Borrowers and their consolidated
subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, accompanied by any management letter prepared by said accountants that
has been issued at such time, or thereafter promptly upon the issuance of any
such management letter;

 

(b)           within the earlier of (i) 60 days after the end of each of
the first three Fiscal Quarters of each fiscal year and (ii) so long as any
Borrower is a public reporting company at such time, such earlier date as the
SEC requires the filing of such information (or if any Borrower is required to
file such information on a Form 10-Q with the SEC, promptly following such
filing), their consolidated and consolidating balance sheet and related
statements of operations, and consolidated cash flows, in each case as of the
end of and for such Fiscal Quarter and the then elapsed portion of the fiscal
year, setting forth in each case (commencing with the Fiscal Quarter ended
March 31, 2007) in comparative form the figures for the corresponding period or
periods of (or, in the case of the balance sheet, as of the end of) the
previous fiscal year, all certified in a certificate of the Administrative
Borrower executed by one of its Financial Officers as presenting fairly in all
material respects the financial condition and results of operations of the Loan
Parties and their consolidated subsidiaries on a consolidated

 

47

 

basis in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments and the absence of
footnotes;

 

(c)           within 30 days after the end of each fiscal month of the
Loan Parties (commencing with the fiscal month ended December 31, 2006), their
consolidated and consolidating balance sheet and related statements of
operations, and consolidated cash flows, in each case as of the end of and for
such fiscal month and the then elapsed portion of the fiscal year, setting
forth in each case (commencing with the fiscal month ended December 31, 2007),
in comparative form the figures for the corresponding period or periods of (or,
in the case of the balance sheet, as of the end of) the previous fiscal year,
all certified in a certificate of the Administrative Borrower executed by one
of its Financial Officers as presenting fairly in all material respects the
financial condition and results of operations of the Loan Parties and their
consolidated subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes;

 

(d)           concurrently with any delivery of financial statements
under clause (a) or (b) above, a certificate of the Administrative Borrower
executed by one of its Financial Officers in substantially the form of Exhibit
B (a “Compliance Certificate”) (i) certifying, in the case of the
financial statements delivered under clause (b), as presenting fairly in all
material respects the financial condition and results of operations of the
Borrowers and their consolidated subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit
adjustments and the absence of footnotes, (ii) certifying on behalf of the
Borrowers as to whether a Default has occurred and, if a Default has occurred,
specifying the details thereof and any action taken or proposed to be taken
with respect thereto, (iii) setting forth reasonably detailed calculations
demonstrating compliance with Section 6.10 and Section 6.11 and
(iv) stating whether any change in GAAP or in the application thereof has
occurred since the date of the audited financial statements referred to in Section
3.04 that would effect the financial statements accompanying such
certificate;

 

(e)           as soon as available, but in any event not more than 45
days after the end of each fiscal year (other than fiscal year 2006, which
shall be 60 days) of the Borrowers commencing with the year ending December 31,
2006, a copy of the plan and forecast (including a projected consolidated
balance sheet, income statement and funds flow statement) of the Loan Parties
for each quarter of the immediately succeeding fiscal year (the “Projections”)
in form reasonably satisfactory to the Administrative Agent;

 

(f)            concurrently with any delivery of financial statements
under clause (a), (b) or (c) above, commencing with the financial statements
delivered for the fiscal month ended January 31, 2006, and other than the
financial statements delivered with respect to the first fiscal month of each
fiscal year, such financial statements set forth in comparative form on a
consolidated basis with the Projections for the corresponding period or periods
of (or, in the case of the balance sheet, as of the end of) such fiscal year;

 

(g)           from and after the registration of any securities of any
Borrower, promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed by any
Loan Party with the Securities and Exchange Commission, or any Governmental
Authority succeeding to any or all of the functions of said

 

48

 

Commission, or with any national securities
exchange, or distributed by any Loan Party to its public securities holders
generally, as the case may be;

 

(h)           promptly following any request therefor, such other
information regarding the operations, business affairs and financial condition
of the Loan Parties, or compliance with the terms of this Agreement, as the
Administrative Agent may reasonably request; and

 

(i)            promptly upon the execution and delivery thereof, a copy
of any amendment, supplement or modification to any Second Lien Indebtedness Document
or Revolving Loan Document or any indenture, note or other agreement evidencing
or governing any Subordinated Indebtedness or any Sponsor Subordinated Debt.

 

SECTION
5.02       Notices of Material Events.
The Borrowers will furnish to the Administrative Agent, as soon as possible and
in any event within three Business Days, written notice of the following:

 

(a)           the occurrence of any Default;

 

(b)           any Responsible Officer of any Borrower having actual
knowledge of any written assertion by the holder of any Indebtedness of any
Loan Party in excess of $5,000,000 that any default exists with respect thereto
or that any Loan Party is not in compliance therewith;

 

(c)           any Responsible Officer of any Borrower becoming aware of
receipt of any written notice of any governmental investigation or any
litigation commenced or threatened against any Loan Party that (i) seeks
damages in excess of $5,000,000, (ii) seeks material injunctive relief, (iii)
is asserted or instituted against any Plan, its fiduciaries or its assets,
which asserts or could result in damages, costs or liabilities of any Loan
Party in excess of $5,000,000, (iv) alleges criminal misconduct by any Loan
Party, (v) alleges the violation of any law regarding, or seeks remedies in
connection with, any Environmental Laws, which asserts or could result in
damages, costs or liabilities of any Loan Party in excess of $5,000,000;
(vi) involves any product recall, or (vii) alleges the material violation
of, or seeks remedies or threatens enforcement action in connection with, the
Food, Drug and Cosmetic Act, or any law, regulation, or order administered by
the FDA, including any warning letter or untitled letter issued by the FDA;

 

(d)           any Responsible Officer of any Borrower becoming aware of
any loss, damage, or destruction to the Collateral in the amount of $5,000,000
or more, whether or not covered by insurance;

 

(e)           any Responsible Officer of any Borrower becoming aware of
any default notices received under or with respect to any leased location or
public warehouse where Collateral valued in excess of $5,000,000 is located
(which shall be delivered within two Business Days after receipt thereof),
which default notices could reasonably be expected to have an adverse impact on
any such Collateral, the interests therein of the Administrative Agent on
behalf of the Secured Parties, or the value thereof;

 

49

 

(f)            any Responsible Officer of any Borrower becoming aware of
any pending or threatened strike, work stoppage, unfair labor practice claim,
or other labor dispute affecting any Loan Party in a manner which could
reasonably be expected to have a Material Adverse Effect; and

 

(g)           any Responsible Officer of any Borrower becoming aware of
any other development that results in, or could reasonably be expected to
result in, a Material Adverse Effect.

 

Each notice delivered under this Section 5.02 shall be
accompanied by a statement of the Administrative Borrower executed by a
Responsible Officer setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect
thereto.

 

SECTION
5.03       Existence; Conduct of
Business. The Borrowers will do or cause to be done all things necessary to
preserve, renew and keep in full force and effect (i) their legal
existence and (ii) the rights, licenses, permits, privileges and
franchises material to the conduct of their business, and maintain all
requisite authority to conduct their business in each jurisdiction in which
their business is conducted, in each case (except in connection with
clause (i) above) except where the failure to do so could not reasonably
be expected to result in a Material Adverse Effect; provided that the
foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03.

 

SECTION
5.04       Payment of Obligations. The
Borrowers will pay or discharge when due all Material Indebtedness and all
other material liabilities and obligations, including taxes, except where (a)
the validity or amount thereof is being contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have
been set aside on such Person’s books, or (b) the failure to pay or
discharge such liabilities or obligations could not, in the aggregate,
reasonably be expected to result in a Material Adverse Effect.

 

SECTION
5.05       Maintenance of Properties
and Intellectual Property Rights. The Borrowers will, except where the
failure to do so could not reasonably be expected to result in a Material
Adverse Effect or as otherwise permitted by Section 6.03, (a) keep and
maintain all property used or useful in the conduct of their business in good
working order and condition, ordinary wear and tear excepted, and (b) obtain
and maintain in effect at all times all franchises, governmental
authorizations, intellectual property rights, licenses and permits, which are
necessary or appropriate for them to own their property or conduct their
business as conducted on the date of this Agreement.

 

SECTION
5.06       Books and Records;
Inspection Rights. The Borrowers will keep, or cause to be kept, proper
books of record and account in which full, true and correct entries in
conformity with GAAP are made of all material dealings and transactions in
relation to their business and activities. The Borrowers will permit any
representatives designated by the Administrative Agent (and accompanied by
representatives designated by any Lender), upon reasonable prior notice and, so
long as no Event of Default has occurred and is continuing, during normal
business hours, to visit and inspect their properties (including to
conduct field examinations or audits of the Borrowers’ assets), to examine
and make extracts from their books

 

50

 

and records, and to discuss
their affairs, finances and condition with their officers and independent
accountants, all at such reasonable times and as often as reasonably requested,
provided that in the absence of an Event of Default not more than two
such visits shall occur in one calendar year (excluding visits occurring prior
to the Effective Date); provided, further, that with respect to
any such books and records with respect to the Borrowers maintained by Bayer or
any of its Affiliates, the Borrowers shall only be obligated to use
commercially reasonable efforts to cause Bayer (or any such Affiliate) to make
such books and records and related properties, officers and independent
accountants of Bayer available in accordance with this Section 5.06,
including by the exercise of any contractual rights of any Borrower, whether
pursuant to the Joint Contribution Agreement or otherwise. After the occurrence
and during the continuance of any Event of Default, the Borrowers will provide
the Administrative Agent (who may be accompanied by representatives designated
by any Lender) with access to their suppliers. The Borrowers acknowledge that
the Administrative Agent, after exercising its rights of inspection, may
prepare and distribute to the Lenders certain Reports pertaining to the
Borrowers’ assets for internal use by the Administrative Agent and the Lenders.

 

SECTION
5.07       Compliance with Laws. The
Borrowers will comply with all laws, rules, regulations and orders of any
Governmental Authority applicable to them or their property, except where the
failure to do so could not reasonably be expected to result in a Material
Adverse Effect.

 

SECTION
5.08       Use of Proceeds. The
proceeds of the Loans will be used only (i) to consummate a portion of the
Transaction and (ii) for working capital needs and general corporate purposes
of the Borrowers (including Permitted Acquisitions, Investments and Loans
permitted under Section 6.04). No part of the proceeds of any Loan will
be used, whether directly or indirectly, (i) for any purpose that entails a
violation of any of the Regulations of the Board, including Regulations T, U
and X or (ii) to make any Acquisition other than a Permitted Acquisition.

 

SECTION
5.09       Insurance. The Borrowers
will maintain with financially sound and reputable carriers having a financial
strength rating of at least A- by A.M. Best Company insurance against: (i) loss
or damage by fire and loss in transit; (ii) theft, burglary, pilferage,
larceny, embezzlement, and other criminal activities; (iii) business
interruption; (iv) general liability; and (v) and such other hazards, as is
customary in the business of such Person. All such insurance shall be in
amounts, cover such assets and be under policies acceptable to the Administrative
Agent in its Permitted Discretion (subject to the following criteria). All
hazard insurance and such other insurance as Administrative Agent shall specify
in the exercise of its Permitted Discretion shall contain a mortgagee
endorsement or an equivalent satisfactory to Administrative Agent showing
Administrative Agent as first loss payee thereof. Each policy of liability
insurance referred to in this Section 5.09 shall name the Secured
Parties as additional insured. Every policy of insurance referred to in this Section
5.09 shall contain an agreement by the insurer that it will not cancel such
policy for any reason except after 30 days prior written notice to the
Administrative Agent and that any loss payable thereunder shall be payable. The
Borrowers shall, upon the Administrative Agent’s request and to the extent
reasonably available, deliver to the Administrative Agent certified copies of
such insurance. Certificates of insurance reasonably satisfactory to the
Administrative Agent evidencing such insurance shall be delivered to the
Administrative Agent no more than seven days following the issuance of such
policies. In

 

51

 

the event of failure by any
Borrower to provide and maintain insurance as provided herein, the
Administrative Agent may, at its option and, if no Event of Default has
occurred and is continuing, upon notice to the Administrative Borrower, provide
such insurance and charge the amount thereof to the Borrowers. No Borrower
shall take out separate insurance concurrent in form or contributing in the
event of loss with that required to be maintained under this Section 5.09,
unless the Administrative Agent is included thereon as additional insured with
the loss payable to the Administrative Agent under a standard mortgagee
endorsement or its equivalent. The Borrowers immediately shall notify the
Administrative Agent whenever such separate insurance is taken out, specifying
the insurer thereunder and full particulars as to the policies evidencing the
same, and copies of such policies promptly shall be provided to the
Administrative Agent. The Borrowers shall not, and shall not permit any other
Person to, use or permit any property of any Borrower to be used in any manner
which might render inapplicable any insurance coverage.

 

SECTION
5.10       Additional Collateral;
Further Assurances. (a)  The
Borrowers will, and will cause each Domestic Subsidiary to, execute any
documents, UCC or PPSA filing statements, agreements and instruments, and take
all further action (including filing Mortgages) that may be required under
applicable law, or that the Administrative Agent may reasonably request, in
order to effectuate the transactions contemplated by the Loan Documents and in
order to grant, preserve, protect and perfect the validity and first priority
of the Liens created or intended to be created by the Loan Documents. Each
Borrower will cause any subsequently acquired or organized Domestic Subsidiary
to execute a supplement (in form and substance satisfactory to the
Administrative Agent) to the Subsidiary Guaranty and each other applicable Loan
Document in favor of the Secured Parties. Each Borrower will cause its Foreign
Subsidiaries to execute and deliver any documents reasonably necessary to
perfect the pledge of its Equity Interests (subject to the limitations set
forth below) under the laws of such subsidiaries’ jurisdiction of organization.
In addition, from time to time, the Borrowers will, at their cost and expense,
promptly secure the Obligations by pledging or creating, or causing to be
pledged or created, perfected Liens with respect to such of their and their
Domestic Subsidiaries’ assets and properties as the Administrative Agent or the
Required Lenders shall designate, it being agreed that it is the intent of the
parties that the Obligations shall be secured by, among other things,
substantially all the assets of the Borrowers and their Domestic Subsidiaries
(including real and personal property acquired subsequent to the Effective
Date); provided that, notwithstanding anything to the contrary contained
in any Loan Document, Revolving Loan Document or Second Lien Term Loan
Document, neither the Borrowers nor their subsidiaries shall be required to
pledge more than 65% of the voting Equity Interests (representing not greater
than 65% of the total combined voting power of all classes of Equity Interests
entitled to vote) of a Foreign Subsidiary, provided, further,
that none of the Borrowers or their subsidiaries shall be required to pledge
(or cause to be pledged) Equity Interests of a Foreign Subsidiary to the extent
such Equity Interests of such Foreign Subsidiary are held by another Foreign
Subsidiary. Such Liens will be created under the Loan Documents in form and
substance satisfactory to the Administrative Agent, and the Borrowers shall
deliver or cause to be delivered to the Administrative Agent all such
instruments and documents (including legal opinions, title insurance policies
and lien searches) as the Administrative Agent shall reasonably request to
evidence compliance with this Section.

 

52

 

(b)           The Borrowers will cause any Revolving Loan Collateral or
other assets that are subject to a first priority, perfected Lien in favor of
the lenders (or the administrative agent on behalf of such lenders) under the
Revolving Loan Documents to be subject at all times to a perfected Lien in
favor of the Administrative Agent pursuant to the terms and conditions of the
Loan Documents, and shall deliver such other security documents in connection
therewith as the Administrative Agent shall reasonably (taking into account the
costs of delivery of such security documents and the benefits provided by such
security documents) request.

 

(c)           Without limiting the foregoing, the Borrowers will execute
and deliver, or cause to be executed and delivered, to the Administrative Agent
such documents and agreements, and will take or cause to be taken such actions
as the Administrative Agent may, from time to time, reasonably request to carry
out the terms and conditions of this Agreement and the other Loan Documents,
including but not limited to all items of the type required by Section 4.01
(as applicable).

 

(d)           To the extent permitted hereunder, if, after the Effective
Date, any Borrower proposes to (i) acquire a fee ownership interest in real
property with a fair market value in excess of $5,000,000 or (ii) enter into
any lease of Specified Real Property, such Borrower will (or, with respect to
any such lease of Specified Leasehold Property, will use commercially
reasonable efforts to), prior to or concurrently with the acquisition of such
fee ownership interest or the entry into such lease, as the case may be,
provide the Administrative Agent a mortgage or deed of trust granting the
Administrative Agent a first priority Lien on the fee ownership interest or the
leasehold interest (as applicable) to be acquired, a mortgage title insurance
policy, local counsel opinion(s), a survey (with respect to such a fee
ownership interest), consent of the lessor under the applicable lease to the
mortgage or deed of trust (with respect to such a leasehold interest),
supplemental casualty insurance if required by the Administrative Agent, flood
insurance if required by law, and such other documents, instruments or
agreements reasonably requested by the Administrative Agent, in each case, in
form and substance reasonably satisfactory to the Administrative Agent.

 

(e)           Notwithstanding anything else set forth herein, the
Borrowers will not be required to deliver the following items on the Effective
Date and will be required instead to deliver them no later than 30 days after
the Effective Date (or such later dates from time to time as consented to by
the Administrative Agent in its reasonable discretion):

 

(i)            any documents required under German law to create and
perfect the security interest of the Administrative Agent in 65% of the Equity
Interests of any Subsidiary of any Borrower organized under the laws of
Germany;

 

(ii)           a Mortgage and all other documents and instruments
required to be delivered in connection with the Mortgages delivered on the
Effective Date with respect to all real estate acquired by the Borrowers
pursuant to the IBR Plasma Asset Acquisition; and

 

53

 

(iii)          PPSA filing statements with respect to the Borrowers’
assets located in Canada, together with opinions of local counsel opining to
the perfection of the Administrative Agent’s security interest in such
Collateral.

 

SECTION
5.11       Compliance with FDA Laws and
Regulations. The Borrowers will substantially comply with all laws, rules,
regulations, and orders of FDA and any order of any court of competent
jurisdiction in the enforcement of any law, regulation, or order administered
by the FDA with respect to their businesses (including the Plasma Protein
Therapeutic Business), except where the failure to do so could not reasonably
be expected to result in a Material Adverse Effect.

 

SECTION
5.12       Rate Protection Agreements.
Within 90 days following the Effective Date, the Borrowers will enter into
interest rate swap, cap, collar or similar arrangements designed to protect the
Borrowers against fluctuations in interest rates with respect to at least 50%
of the aggregate outstanding principal amount of Loans and Second Lien Term
Loans for a period of at least three years from the Effective Date, on terms
reasonably satisfactory to the Administrative Agent.

 

SECTION
5.13       Subsidiary Guarantors. Each
Borrower will cause any Subsidiary Guarantor controlled by it to comply with
the terms of each covenant contained in Article V and Article VI
hereof as if such Subsidiary Guarantor were a Borrower.

 

SECTION
5.14       Maintenance of Ratings. The
Borrowers will use commercially reasonable efforts to cause a (i) corporate
credit rating by S&P and Moody’s and (ii) senior secured credit rating with
respect to the Loans from each of S&P and Moody’s to be available at all
times until the Maturity Date for the Term Loans.

 

ARTICLE VI

 

Negative Covenants

 

Until the principal of and interest on each Loan and all fees payable
hereunder have been paid in full, the Borrowers covenant and agree with the
Administrative Agent and the Lenders that:

 

SECTION
6.01       Indebtedness. The
Borrowers will not, and will not permit any of their respective subsidiaries
to, create, incur or suffer to exist any Indebtedness, except:

 

(a)           the Obligations;

 

(b)           Indebtedness existing on the date hereof and set forth on Schedule
6.01 and extensions, renewals, refinancings and replacements of any such
Indebtedness; provided that, (i) the principal amount of such
Indebtedness is not increased, (ii) any Liens securing such Indebtedness
are not extended to any additional property of any Loan Party, (iii) no
Loan Party that is not originally obligated (whether as a borrower or a
guarantor) with respect to repayment of such Indebtedness is required to become
obligated with respect thereto (whether as a borrower or a guarantor),
(iv) such extension, refinancing, replacement or renewal does not result
in a shortening of the average weighted maturity of the Indebtedness so
extended,

 

54

 

refinanced, replaced or renewed, (v) the
terms of any such extension, refinancing, replacement or renewal, taken as a
whole, are not materially less favorable to the obligor thereunder than the
original terms of such Indebtedness, and (vi) if the Indebtedness that is
refinanced, renewed, replaced or extended was subordinated in right of payment
to the Obligations, then the terms and conditions of the refinancing, renewal,
replacement or extension Indebtedness must include subordination terms and
conditions that are at least as favorable to the Administrative Agent and the
Lenders as those that were applicable to the refinanced, renewed, replaced or
extended Indebtedness;

 

(c)           [INTENTIONALLY OMITTED];

 

(d)           subject to the Intercreditor Agreement, (i) Indebtedness
consisting of the Second Lien Term Loans in an aggregate principal amount not
to exceed the Maximum Second Lien Term Loan Amount (as defined in the
Intercreditor Agreement) and (ii) Indebtedness consisting of the Revolving
Obligations, and extensions, renewals, refinancings and replacements of any
such Indebtedness in an aggregate principal amount not to exceed the Maximum
Revolving Loan Amount (as defined in the Intercreditor Agreement);

 

(e)           Indebtedness of any Loan Party (other than Parent) to any
other Loan Party, provided that:

 

(i)            the applicable Loan Parties shall have executed a demand
note to evidence any such intercompany Indebtedness owing at any time by any
applicable Loan Party to another applicable Loan Party, which demand notes
shall be in form and substance reasonably satisfactory to the Administrative
Agent and shall be pledged and delivered to the Administrative Agent pursuant
to the Security Agreement or the applicable Subsidiary Security Agreement as
additional collateral security for the Obligations;

 

(ii)           each applicable Loan Party shall record all material
intercompany transactions on its books and records in accordance with Section
5.06; and

 

(iii)          the obligations of the applicable Loan Parties under any
such Intercompany Notes shall be subordinated to the Obligations hereunder in a
manner reasonably satisfactory to the Administrative Agent.

 

(f)            Guarantees by a Loan Party of Indebtedness of any other
Loan Party if the primary obligation is expressly permitted elsewhere in this Section
6.01;

 

(g)           Indebtedness of any Loan Party (other than Parent)
incurred to finance the acquisition, construction or improvement (in each case
after the Effective Date) of any fixed or capital assets, including Capital
Lease Obligations and any Indebtedness assumed in connection with the
acquisition of any such assets or secured by a Lien on any such assets prior to
the acquisition thereof; provided that (i) such Indebtedness is incurred
prior to or within 180 days after such acquisition or the completion of such
construction or improvement and (ii) the aggregate principal amount of
Indebtedness permitted by this clause (g), when aggregated with the principal
amount of all Indebtedness incurred under clause (h) of this Section 6.01,
shall not exceed $85,000,000 at any time outstanding;

 

55

 

(h)           purchase money Indebtedness of any Loan Party (other than
Parent) incurred in connection with the purchase after the Effective Date of
any fixed or capital assets (as such term is defined in the Security
Agreement); provided that, (i) the amount of such purchase money
Indebtedness shall be limited to an amount not in excess of the purchase price
of such fixed or capital assets and (ii) the aggregate of all such purchase
money Indebtedness incurred under this clause (h), when aggregated with the
principal amount of all Indebtedness incurred under clause (g) of this Section
6.01, shall not exceed $85,000,000 at any time outstanding;

 

(i)            Indebtedness of any Loan Party under any Swap Agreement
required in connection with the Second Lien Term Loan Credit Agreement, the
Revolving Credit Agreement or otherwise permitted hereunder;

 

(j)            obligations in respect of performance, bid and surety
bonds and completion guaranties and Guarantees and credit support for the
account of plasma suppliers provided by any Loan Party (other than Parent), in
each case in the ordinary course of business;

 

(k)           Indebtedness incurred by any Loan Party (other than
Parent) arising from agreements providing for indemnification related to sales
of goods or adjustment of purchase price or similar obligations in any case incurred
in the ordinary course of business in connection with the disposition of any
business, assets or subsidiary of the Loan Parties otherwise permitted
hereunder;

 

(l)            Indebtedness of any Loan Party in respect of workers’
compensation claims, self-insurance obligations otherwise permitted hereunder,
and bankers’ acceptances in the ordinary course of business;

 

(m)          Indebtedness of any Loan Party arising from the honoring by
a bank or other financial institution of a check, draft or similar instrument
inadvertently drawn against insufficient funds, so long as such Indebtedness is
covered within five Business Days;

 

(n)           Guarantees by any Loan Party (other than Parent) of
obligations of Foreign Subsidiaries and joint ventures if such Guarantees would
be permitted if it were an Investment under Section 6.04(l) at such
time;

 

(o)           (i) Indebtedness incurred by any Loan Party with respect
to a Seller Note issued as consideration in connection with a Permitted
Acquisition, and (ii) Indebtedness of any Loan Party existing at the time such
Loan Party is acquired pursuant to a Permitted Acquisition, provided
that such Indebtedness was not incurred in connection with, or in anticipation
or contemplation of, such Permitted Acquisition;

 

(p)           Indebtedness incurred with respect to the deferral of
management fees and other amounts payable pursuant to the Management Agreement,
as in effect on the date hereof and with such changes as are acceptable to the
Administrative Agent;

 

(q)           Indebtedness secured by a mortgage on real property owned
by a Loan Party, secured by no Liens other than Liens upon such real property,
improvements thereof

 

56

 

and fixtures thereon in an aggregate
principal amount not exceeding $20,000,000 at any time outstanding;

 

(r)            Indebtedness in an aggregate principal amount not
exceeding $40,000,000 at any time outstanding financing foreign operations of
the Loan Parties secured solely by Liens on assets located outside the United
States;

 

(s)           Subordinated Indebtedness and Sponsor Subordinated Debt; provided
that at the time thereof and immediately after giving effect thereto no Event
of Default shall have occurred and be continuing and the Borrowers are in pro
forma compliance with Section 6.11 after giving effect to the incurrence
thereof; and

 

(t)            other unsecured Indebtedness in an aggregate principal
amount not exceeding $60,000,000 at any time outstanding.

 

SECTION
6.02       Liens. The Borrowers
will not, and will not permit any of their respective subsidiaries to, create,
incur, assume or permit to exist any Lien on any property or asset now owned or
hereafter acquired by it, or assign or sell any income or revenues (including
accounts receivable) or rights in respect of any thereof, except:

 

(a)           Permitted Encumbrances;

 

(b)           any Lien on any property or asset of any Loan Party and
proceeds thereof existing on the date hereof and set forth in Schedule 6.02;
provided that (i) such Lien shall not apply to any other property or
asset of any Loan Party (other than proceeds thereof), and (ii) such Lien shall
secure only those obligations which it secures on the date hereof and
extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof;

 

(c)           Liens securing purchase money Indebtedness of a Loan Party
permitted pursuant to clause (h) of Section 6.01; provided that,
such Liens attach only to the property and proceeds thereof which was purchased
with the proceeds of such purchase money Indebtedness;

 

(d)           Liens on fixed or capital assets acquired, constructed or
improved by a Loan Party; provided that (i) such security interests
secure Indebtedness permitted by clause (g) of Section 6.01, (ii) such
security interests and the Indebtedness secured thereby are incurred prior to
or within 180 days after such acquisition or the completion of such
construction or improvement, (iii) the Indebtedness secured thereby does not
exceed 100% of the cost of acquiring, constructing or improving such fixed or
capital assets, and (iv) such security interests shall not apply to any other
property or assets of any Loan Party;

 

(e)           Liens securing Indebtedness permitted by Section
6.01(j);

 

(f)            Liens securing the Second Lien Obligations, subject to
the Intercreditor Agreement;

 

57

 

(g)           Liens securing the Revolving Obligations, subject to the
Intercreditor Agreement; and

 

(h)           Liens on specific property or specific assets acquired
pursuant to a Permitted Acquisition (and the proceeds thereof) or assets of a
Subsidiary in existence at the time such subsidiary is acquired pursuant to a
Permitted Acquisition and not created in contemplation thereof; and

 

(i)            Liens securing Indebtedness permitted by Sections
6.01(q) and (r), and in each case attaching only to the assets
specified therein.

 

SECTION
6.03       Fundamental Changes. (a)  The Borrowers will not, and will not permit
any of their respective subsidiaries to, merge into or consolidate with any
other Person, or permit any other Person to merge into or consolidate with it,
or Dispose of (in one transaction or in a series of transactions) any
substantial part of their assets, or all or substantially all of the stock of
any of their subsidiaries (in each case, whether now owned or hereafter
acquired), or liquidate or dissolve, except that (i) any subsidiary may merge
into a Borrower in a transaction in which such Borrower is the surviving
Person, (ii) any Borrower (other than Parent) may merge into any other Loan
Party (other than Parent) in a transaction in which the surviving entity is a
Loan Party (or if either such Loan Party was a Borrower, the surviving entity
shall be a Borrower), (iii) any Loan Party may Dispose of (1) its assets to any
other Loan Parties (other than the Parent), (2) Inventory, (3) equipment that is
obsolete or no longer useful in its business, (4) equipment that is being
replaced with equipment having a comparable purpose or function, and
(5) other assets having a book value not exceeding $7,500,000 in the
aggregate in any fiscal year, (iv) any subsidiary of a Borrower that is
not a Loan Party may liquidate or dissolve if the Borrowers determine in good
faith that such liquidation or dissolution is in the best interests of the
Borrowers and is not materially disadvantageous to the Lenders; provided
that any such merger involving a Person that is not a wholly owned Subsidiary
immediately prior to such merger shall not be permitted unless also permitted
by Section 6.04, (v) if at the time thereof and immediately after giving
effect thereto no Event of Default shall have occurred and be continuing, any
Borrower may consummate a merger or consolidation to consummate a Permitted
Acquisition, (vi) any Loan Party may sell, license or sublicense
Intellectual Property or enter into transactions having a similar effect, so
long as the Loan Parties maintain all rights with respect thereto reasonably
necessary to run their business, (vii) if at the time thereof and
immediately after giving effect thereto no Event of Default shall have occurred
and be continuing, any Borrower may sell the Hyperimmune Business or any part
thereof for not less than fair market value and otherwise on terms and
conditions reasonably acceptable to the Administrative Agent, (viii) if at
the time thereof and immediately after giving effect thereto no Event of
Default shall have occurred and be continuing, any Loan Party may sell other
product lines not material to the business of the Loan Parties as a whole for
not less than fair market value and otherwise on terms and conditions reasonably
acceptable to the Administrative Agent, (ix) the disposition or transfer by any
Loan Party (other than Parent) of any of its property or assets to a joint
venture or Foreign Subsidiary (other than a Subsidiary Guarantor), provided,
that to the extent the consideration paid by such joint venture or Foreign
Subsidiary is less than the fair market value thereof, the Loan Parties shall
be in compliance with the provisions of Section 6.04(l), and
(x) the Loan Parties may make any Restricted Payments not prohibited by Section
6.06. The Net Cash Proceeds of any Disposition permitted pursuant to Section
6.03(a)(iii)(5),

 

58

 

(a)(vii) or (a)(viii) and in excess of $7,500,000
in any Fiscal Year shall be delivered to the Administrative Agent if and to the
extent required by Section 2.09, and applied to the Obligations as set
forth therein.

 

(b)           The Loan Parties will not, and will not permit any of
their respective subsidiaries to, engage in any business activity except those
business activities engaged in by the Borrowers or IBR on the date of this
Agreement and activities related thereto and reasonable extensions thereof.

 

SECTION
6.04       Investments, Loans, Advances
and Acquisitions. The Borrowers will not, and will not permit any of their
respective subsidiaries to, purchase, hold or acquire (including pursuant to
any merger with any Person that was not a Loan Party and a wholly owned
Subsidiary prior to such merger) any capital stock, evidences of indebtedness
or other securities (including any option, warrant or other right to acquire
any of the foregoing) of, make or permit to exist any loans or advances to, or
make or permit to exist any investment or any other interest in, any other
Person, or purchase or otherwise acquire (in one transaction or a series of
transactions) any assets of any other Person constituting a business unit
(whether through purchase of assets, merger or otherwise) or make any
Acquisition (each of the foregoing, an “Investment”), except:

 

(a)           Permitted Investments, subject to control agreements in
favor of the Administrative Agent for the benefit of the Secured Parties or
otherwise subject to a perfected security interest in favor of the
Administrative Agent for the benefit of the Secured Parties;

 

(b)           Investments existing on the date hereof by any Borrower in
the Equity Interests of its subsidiaries;

 

(c)           loans or advances made by a Loan Party to any other Loan
Party (other than Parent) in accordance with Section 6.01;

 

(d)           Investments or capital contributions made by a Loan Party
to any other Loan Party (other than Parent);

 

(e)           other Investments, loans and advances in existence on the
date of this Agreement and described in Schedule 6.04;

 

(f)            loans or advances made by a Loan Party (other than Parent)
to its employees on an arms-length basis in the ordinary course of business for
travel and entertainment expenses, relocation costs and similar purposes (up to
a maximum of $1,000,000 in the aggregate at any one time outstanding), and
loans or advances to directors, officers or employees of any Loan Party the
proceeds of which are concurrently used to purchase Equity Interests in such
Loan Party;

 

(g)           [INTENTIONALLY OMITTED];

 

(h)           Investments incurred in order to consummate Permitted
Acquisitions, provided that (i) the consideration for all such
Acquisitions, in the aggregate does

 

59

 

not exceed $100,000,000, provided further that such $100,000,000 limit shall be increased on
a dollar for dollar basis by the cash proceeds of any issuance of Sponsor
Subordinated Debt or equity contribution (other than equity contributions made
for purposes of allowing additional Investments pursuant to Sections 6.04
(l), (p) or (q) to fund repurchases or redemptions permitted by Section
6.06, allowing additional Capital Expenditures pursuant to Section 6.10
or for purposes of satisfying the covenants contained in Section 6.11),
(ii) at the time thereof and immediately after giving effect thereto no Event
of Default shall have occurred and be continuing, (iii) immediately after
giving effect thereto, the Leverage Ratio of the Borrowers, as of the last day
of the Fiscal Quarter ended immediately prior to the date of consummation of
such Acquisition and after giving pro forma effect to such Acquisition does not
increase above the greater of either (A) the amount it had been at or on such
date or (B) an amount that is no more than 0.25 less than the level permitted
by Section 6.11(a) at the end of the then current Fiscal Quarter, (iv) the
Loan Parties shall have obtained the prior, effective written consent or
approval to such Acquisition of the board of directors or equivalent governing
body of the Person being acquired or whose assets are being acquired and
(v) such Acquisition consists exclusively of (A) assets located only in
the United States or Canada, (B) a Person organized under the laws of the
United States or any state thereof or Canada or any province thereof, so long
as such Person becomes a Loan Party, or (C) assets located in, or Persons
organized under the laws of, other jurisdictions, in an aggregate amount, when
aggregated with Investments made pursuant to Section 6.04(l), do not
exceed $75,000,000 at any time outstanding, which foreign Investments shall be
Controlled at all times by the Borrowers unless the Person holding such
acquired assets, or the acquired Person, is an Excluded Joint Venture, provided further that such $75,000,000 limit
shall be increased on a dollar for dollar basis by the cash proceeds of any equity
contribution or proceeds from the issuance of Sponsor Subordinated Debt, other
than equity contributions or issuances of Indebtedness made for purposes of
allowing additional Investments or Acquisitions pursuant to Section
6.04(h)(i), to fund repurchases or redemptions permitted by Section 6.06,
for purposes of allowing additional Capital Expenditures pursuant to Section
6.10 or for purposes of satisfying the covenants contained in Section
6.11(a) or (c), (vi) all material governmental and material third-party
approvals necessary in connection with such Acquisition shall have been
obtained and be in full force and effect, (vii) if acquiring a Person,
such Person becomes (A) a wholly-owned subsidiary of a Borrower or (B) an
Excluded Joint Venture and (viii) on or before the date of consummation of
such Acquisition, the Administrative Agent shall have received (A) all
documents required by the provisions of Section 5.10 with respect to any
Person purchased or formed in such Acquisition and (B) if the amount of such
Acquisition exceeds $10,000,000, a certificate of the Administrative Borrower
executed by its chief financial officer or chief executive officer certifying
to the Administrative Agent and the Lenders as to the matters set forth in the
foregoing clauses (i) through (viii);

 

(i)            Investments (including debt obligations) received in
connection with the bankruptcy or reorganization of suppliers and customers and
in settlement of delinquent obligations of, and other disputes with, customers
and suppliers arising in the ordinary course of business, and Investments
(including debt obligations) received as consideration for any disposition
permitted by Section 6.03(a)(viii) or (ix), to the extent that
such consideration is not required thereunder to be paid in cash;

 

(j)            Investments of the Loan Parties under any Swap Agreement
otherwise permitted hereunder;

 

60

 

(k)           Investments of any Loan Party existing at the time such
Loan Party is acquired pursuant to a Permitted Acquisition, provided
such Investment was not incurred in connection with, or in anticipation or
contemplation of, such Acquisition;

 

(l)            Investments by the Loan Parties in joint ventures,
Foreign Subsidiaries, or other Investments, so long as (A) at the time thereof
and immediately after giving effect thereto no Event of Default shall have
occurred and be continuing, (B) the Leverage Ratio of the Borrowers, as of the
last day of the Fiscal Quarter ended immediately prior to the date of such
Investment and after giving pro forma effect to such Investment, does not
increase above the level permitted by Section 6.11(a) at the end of the
current Fiscal Quarter and (C) if such Investment constitutes an Acquisition,
the Loan Parties shall have complied with clauses (iv), (v), (vi), and (viii)
of Section 6.04(h) with respect thereto;

 

(m)          Investments by the Loan Parties in new domestic
subsidiaries, so long as the Loan Parties and such subsidiaries are in
compliance with Section 5.10 with respect thereto, provided that,
in each case, to the extent such new subsidiary is created solely for the
purpose of consummating a merger transaction pursuant to a Permitted
Acquisition, and such new subsidiary at no time holds any assets or liabilities
other than any merger consideration contributed to it contemporaneously with
the closing of such merger transactions, such new subsidiary shall not be
required to take the actions set forth in Section 5.10, as applicable,
until the respective acquisition is consummated (at which time the surviving
entity of the respective merger transaction shall be required to so comply
promptly (and in any event within 10 Business Days);

 

(n)           so long as the Loan Parties have complied with Section
5.10 with respect thereto, other Investments in an aggregate amount not to
exceed $20,000,000 at any time outstanding, provided that if such
Investment constitutes an Acquisition, the Loan Parties shall have complied
with clauses (ii), (iv), (v), (vi) and (viii) of Section 6.04(h) with
respect thereto;

 

(o)           loans or advances to suppliers of plasma to the Borrowers
in the ordinary course of business and consistent with past practice;

 

(p)           other Acquisitions; provided that (i) such
Acquisitions are otherwise permitted herein, (ii) the consideration for such
Acquisitions consists exclusively of Equity Interests of the Parent, (iii) the
issuance of such Equity Interests in connection with such Acquisition will not
result in a Change of Control and (iv) such Acquisition will comply with
sub-clauses (ii), (iii), (iv), (v), (vi), (vii) and (viii) of Section
6.04(h); and

 

(q)           Investments incurred in order to consummate any of the
Preplanned Investments, provided that (i) the aggregate consideration
for all such Preplanned Investment, in the aggregate does not exceed
$50,000,000 at any time outstanding, provided
further that such $50,000,000 limit shall be increased on a dollar for
dollar basis by the cash proceeds of any Sponsor Subordinated Debt or equity
contribution (other than equity contributions or issuances of Indebtedness made
for purposes of allowing additional Investments pursuant to Section 6.04(h),
(l) or (p), to fund repurchases or redemptions permitted by Section
6.06, allowing additional Capital Expenditures pursuant to Section 6.10
or for purposes of satisfying the covenants contained in Section 6.11),
(ii) at the time thereof and immediately after

 

61

 

giving effect thereto no Event of Default
shall have occurred and be continuing, (iii) the Leverage Ratio of the
Borrowers, as of the last day of the Fiscal Quarter ended immediately prior to
the date of consummation of such Preplanned Investment and after giving pro
forma effect to such Preplanned Investment does not increase above the amount
it had been at or on such date, (iv) the Loan Parties shall have obtained the
prior, effective written consent or approval to such Acquisition of the board
of directors or equivalent governing body of the Person being acquired or whose
assets are being acquired, (v) all material governmental and material
third-party approvals necessary in connection with such Preplanned Investment
shall have been obtained and be in full force and effect, (vi) if acquiring a
Person, such Person becomes a wholly-owned Subsidiary of a Borrower, (vii) on
or before the date of consummation of such Preplanned Investment, the
Administrative Agent shall have received (A) all documents required by the
provisions of Section 5.10 with respect to any Person purchased or
formed in such Preplanned Investment and (B) if the amount of such Preplanned
Investment exceeds $10,000,000, a certificate of the Administrative Borrower
executed by its chief financial officer or chief executive officer certifying
to the Administrative Agent and the Lenders as to the matters set forth in the
foregoing clauses (i) through (vi).

 

SECTION
6.05       Swap Agreements. The
Loan Parties will not enter into any Swap Agreement, except (a) Swap Agreements
entered into to hedge or mitigate risks to which any Loan Party has or reasonably
expects to have actual exposure (other than those in respect of Equity
Interests of any Loan Party or any of its subsidiaries), and (b) Swap
Agreements entered into in order to effectively fix, cap or collar interest
rates with respect to any interest-bearing liability of a Loan Party or to
exchange interest rates (from fixed to floating rates, from one floating rate
to another floating rate or otherwise) with respect to any interest-bearing
investment of a Loan Party.

 

SECTION
6.06       Restricted Payments. The
Borrowers will not, and will not permit any of their respective subsidiaries
to, declare or make, directly or indirectly, any Restricted Payment, except (a)
the Borrowers may make Restricted Payments with respect to its Equity Interests
payable solely in additional shares of its common stock, (b) any subsidiary of
Parent may declare and pay dividends ratably with respect to their Equity
Interests, (c) after an Initial Public Offering (including an offering that
would be an Initial Public Offering except that the amount of proceeds received
with respect thereto is less than $50,000,000) of a Borrower, such Borrower may
declare and pay dividends for the purchase of fractional shares arising out of
stock dividends, splits or combinations; provided  however, that
the Loan Parties may make Restricted Payments: 
(i) for the payment of general and administrative costs and expenses in
an amount not to exceed $500,000 in any fiscal year and taxes of Parent; (ii)
so long as no Event of Default has occurred and is continuing, for the purchase
of common stock or common stock options from present or former officers or
employees upon the death, disability or termination of employment of such
officer or employee, provided, that the aggregate amount of Restricted
Payments under this clause (ii) in any fiscal year shall not exceed $5,000,000,
(iii) so long as the requirements of Section 6.07(d) are met, for the
payment of management fees and other amounts owing (including accrued
management fees and other accrued amounts) to the Sponsor Group pursuant to the
Management Agreement, as in effect on the date hereof and with such changes as
are acceptable to the Administrative Agent, (iv) for payment of in kind
dividends on the Senior Convertible Preferred Stock, (v) to repurchase or
redeem equity owned by IBR pursuant to the IBR Plasma Asset Purchase, (vi) for
payment of Special Recognition Bonus 1 and Special

 

62

 

Recognition Bonus 2A, (vii) for
payment of Special Recognition Bonus 2B, (viii) in connection with the
Dividend, in an amount not to exceed the amount of the respective Dividend and
(ix) so long as no Event of Default has occurred and is continuing or would
result therefrom, repurchases of Equity Interests issued in connection with the
Bonus Plan to the extent necessary to pay the minimum withholding tax required
to be paid in connection with the vesting of restricted Equity Interests and
options thereon. For the avoidance of doubt, the Borrowers shall not be
restricted pursuant to this Section 6.06 or otherwise from issuing
options pursuant to a stock option plan or from the issuance of Equity Interest
upon the exercise of any such options.

 

SECTION
6.07       Transactions with Affiliates.
Except as set forth on Schedule 6.07, the Borrowers will not, and will not
permit their respective subsidiaries to, sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or
assets from, or otherwise engage in any other transactions with, any of their
Affiliates, except (a) in the ordinary course of business at prices and on
terms and conditions not less favorable to the Loan Parties than could be
obtained on an arm’s-length basis from unrelated third parties,
(b) transactions between or among a Loan Party (other than Parent) and
another Loan Party that is a wholly owned subsidiary of a Loan Party not
involving any other Affiliate, (c) any Restricted Payment permitted by Section
6.06, (d) performance of the terms of the Management Agreement, as in
effect on the date hereof and with such changes as are acceptable to the
Administrative Agent, provided, that no Loan Party shall pay any
management or similar fees under the Management Agreement unless no Event of
Default has occurred and is continuing; provided, that management and
similar fees that are not at any time permitted to be paid can accrue for later
payment, (e) Indebtedness, Liens and Investments with respect to Foreign
Subsidiaries and joint ventures of the Loan Parties otherwise permitted under
the Loan Documents, (f) the Dividend, (g) the incurrence of, and payments in
respect of, Sponsor Subordinated Debt permitted hereunder, (h) sales of
Equity Interests by Parent (directly or indirectly) to the Sponsor Group, (i)
payment of Special Recognition Bonus 1, Special Recognition Bonus 2A and
Special Recognition Bonus 2B and (j) any issuance of Equity Interests by
Parent to Holdings. For avoidance of doubt, this Section 6.07 shall not
apply to employment arrangements with and payments of compensation or benefits
to or for the benefit of management including the board of directors.

 

SECTION
6.08       Restrictive Agreements. The
Borrowers will not, and will not permit any other Borrower or any subsidiary of
any Borrower to, directly or indirectly, enter into, incur or permit to exist
any agreement or other arrangement that prohibits, restricts or imposes any
condition upon (a) the ability of such Loan Party to create, incur or permit to
exist any Lien upon any of its property or assets, or (b) the ability of any
subsidiary of a Loan Party to pay dividends or other distributions with respect
to any shares of its capital stock or to make or repay loans or advances to any
Borrower or any other subsidiary of a Borrower or to Guarantee Indebtedness of
a Borrower or any other subsidiary of a Borrower; provided that (i) the
foregoing shall not apply to restrictions and conditions imposed by law, by the
Loan Documents, the Revolving Loan Documents or by the Second Lien Indebtedness
Documents, (ii) the foregoing shall not apply to restrictions and conditions
existing on the date hereof identified on Schedule 6.08 (but shall apply
to any extension or renewal of, or any amendment or modification expanding the
scope of, any such restriction or condition), (iii) the foregoing shall not
apply to customary restrictions and conditions contained in agreements relating
to the sale of an entity or asset pending such sale, provided such restrictions
and conditions apply only to the entity or asset that is to be sold and

 

63

 

such sale is permitted
hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or
conditions imposed by any agreement relating to secured Indebtedness (including
Capital Lease Obligations) permitted by this Agreement if such restrictions or
conditions apply only to the property or assets (or the proceeds thereof)
securing such Indebtedness, (v) clause (a) of the foregoing shall not apply to
customary provisions in leases restricting the assignment thereof, and (vi)
customary provisions in joint venture agreements and similar agreements that
restrict the transfer or pledge of Equity Interests in, or the creation of
Liens on assets of, joint ventures constituting Excluded Joint Ventures or
which are not Subsidiaries, which restrictions relate only to the assets of, or
Equity Interests in, such joint venture, so long as such Equity Interests are
not pledged to any other Person.

 

SECTION
6.09       Prepayment of Second Lien
Term Loans; Sponsor Subordinated Debt and Subordinated Indebtedness. The
Borrowers will not, and will not permit their respective subsidiaries to,
directly or indirectly, voluntarily purchase, redeem, defease, prepay, retire
or otherwise acquire any principal of, premium, if any, interest or other
amount payable in respect of any Second Lien Term Loans, Sponsor Subordinated
Debt or Subordinated Indebtedness prior to its scheduled maturity, other than
(i) with respect to interest, on the stated, scheduled date for payment of
interest set forth in the applicable Second Lien Indebtedness Document or
document governing such Subordinated Indebtedness or (ii) with respect to
principal (and premiums, if any) of Second Lien Term Loans, with the proceeds
of the issuance of Equity Interests of the Parent to the extent permitted by Section
2.09(b)(ii) and (c).

 

Except as permitted by Section 6.01(b), (c) or (d),
no Loan Party shall make any amendment or modification to any Second Lien
Indebtedness Document or any indenture, note, or other agreement evidencing or
governing the Second Lien Indebtedness, Subordinated Indebtedness (other than
intercompany Indebtedness) or Sponsor Subordinated Debt; provided that
the Loan Parties may enter into amendments or modifications (i) that make
covenants and events of default in any such Second Lien Indebtedness Documents,
Subordinated Indebtedness documents or Sponsor Subordinated Debt documents less
restrictive on the Borrowers or the Subsidiary Guarantors or (ii) that waive,
or forbear from the exercise of remedies in respect of, defaults under such
Second Lien Indebtedness Documents, Sponsor Subordinated Debt documents and
Subordinated Indebtedness documents or (iii) that are not adverse to the
Secured Parties.

 

SECTION
6.10       Capital Expenditures. (a)  The Borrowers and their subsidiaries will not
expend cash for Capital Expenditures during any period listed below in excess
of the following:

 

	
  Period

  	
   

  	
  Annual Permitted

  Amount

  	
   

  
	
  December 1,
  2006 through December 31, 2007

  	
   

  	
  $

  	
  98,000,000

  	
   

  
	
  Fiscal Year
  ending December 31, 2008

  	
   

  	
  $

  	
  112,000,000

  	
   

  
	
  Fiscal Year
  ending December 31, 2009

  	
   

  	
  $

  	
  106,000,000

  	
   

  
	
  Fiscal Year
  ending December 31, 2010

  	
   

  	
  $

  	
  87,000,000

  	
   

  
	
  Fiscal Year
  ending December 31, 2011

  	
   

  	
  $

  	
  49,000,000

  	
   

  
	
  Fiscal Year
  ending December 31, 2012

  	
   

  	
  $

  	
  67,000,000

  	
   

  

 

64

 

	
  Period

  	
   

  	
  Annual Permitted

  Amount

  	
   

  
	
  Fiscal Year
  ending December 31, 2013 and each Fiscal Year ending thereafter

  	
   

  	
  $

  	
  79,000,000

  	
   

  
					

 

To the extent that actual Capital Expenditures for any fiscal year are
less than the maximum amount allowed hereunder for such fiscal year, such
unused amount may be carried forward and used only in the next fiscal year.

 

(b)           Notwithstanding clause (a), to the extent the Borrowers
and their subsidiaries are required to make any Regulatory Cap Ex, the
Borrowers and their subsidiaries are permitted to make such Regulatory Cap Ex
in an amount not to exceed $10,000,000 in any fiscal year.

 

SECTION
6.11       Financial Covenants.

 

(a)           Leverage Ratio. Commencing as of the Fiscal Quarter
ended March 31, 2007, the Borrowers will not permit the Leverage Ratio of the
Borrowers and their subsidiaries, determined as of the end of each Fiscal
Quarter for the then most-recently ended four Fiscal Quarters, to be greater
than the following:

 

	
  Period

  	
   

  	
  Leverage Ratio

  	
   

  
	
  Fiscal
  Quarter ending March 31, 2007

  	
   

  	
  5.75 to 1

  	
   

  
	
  Fiscal
  Quarter ending June 30, 2007

  	
   

  	
  5.75 to 1

  	
   

  
	
  Fiscal
  Quarter ending September 30, 2007

  	
   

  	
  5.75 to 1

  	
   

  
	
  Fiscal
  Quarters ending December 31, 2007

  	
   

  	
  5.50 to 1

  	
   

  
	
  Fiscal
  Quarter ending March 31, 2008

  	
   

  	
  5.50 to 1

  	
   

  
	
  Fiscal
  Quarter ending June 30, 2008

  	
   

  	
  5.25 to 1

  	
   

  
	
  Fiscal
  Quarter ending September 30, 2008

  	
   

  	
  5.25 to 1

  	
   

  
	
  Fiscal
  Quarters ending December 31, 2008

  	
   

  	
  5.00 to 1

  	
   

  
	
  Fiscal
  Quarter ending March 31, 2009

  	
   

  	
  4.86 to 1

  	
   

  
	
  Fiscal
  Quarter ending June 30, 2009

  	
   

  	
  4.68 to 1

  	
   

  
	
  Fiscal
  Quarter ending September 30, 2009

  	
   

  	
  4.49 to 1

  	
   

  
	
  Fiscal
  Quarters ending December 31, 2009

  	
   

  	
  4.30 to 1

  	
   

  
	
  Fiscal
  Quarter ending March 31, 2010

  	
   

  	
  4.03 to 1

  	
   

  
	
  Fiscal
  Quarter ending June 30, 2010

  	
   

  	
  3.75 to 1

  	
   

  
	
  Fiscal
  Quarter ending September 30, 2010

  	
   

  	
  3.48 to 1

  	
   

  
	
  Fiscal
  Quarters ending December 31, 2010

  	
   

  	
  3.20 to 1

  	
   

  
	
  Fiscal
  Quarter ending March 31, 2011

  	
   

  	
  3.00 to 1

  	
   

  
	
  Fiscal
  Quarter ending June 30, 2011

  	
   

  	
  2.79 to 1

  	
   

  
	
  Fiscal
  Quarter ending September 30, 2011

  	
   

  	
  2.59 to 1

  	
   

  
	
  Fiscal Quarters
  ending December 31, 2011

  	
   

  	
  2.38 to 1

  	
   

  
	
  Fiscal
  Quarters ending December 31, 2012

  	
   

  	
  2.29 to 1

  	
   

  
	
  Fiscal
  Quarters ending December 31, 2013

  	
   

  	
  2.25 to 1

  	
   

  
	
  Fiscal
  Quarters ending December 31, 2014

  	
   

  	
  2.00 to 1

  	
   

  

 

65

 

 (b)          Interest Coverage Ratio. Commencing
as of the Fiscal Quarter ended March 31, 2007, the Borrowers will not permit
the Interest Coverage Ratio of the Borrowers and their subsidiaries, determined
as of the end of each Fiscal Quarter for the then most-recently ended four
Fiscal Quarters, to be less than the following:

 

	
  Period

  	
   

  	
  Interest
  Coverage Ratio

  	
   

  
	
  Fiscal Quarter ending March 31, 2007

  	
   

  	
  1.65 to 1

  	
   

  
	
  Fiscal Quarter ending June 30, 2007

  	
   

  	
  1.65 to 1

  	
   

  
	
  Fiscal Quarter ending September 30, 2007

  	
   

  	
  1.65 to 1

  	
   

  
	
  Fiscal Quarters ending December 31, 2007

  	
   

  	
  1.70 to 1

  	
   

  
	
  Fiscal Quarter ending March 31, 2008

  	
   

  	
  1.76 to 1

  	
   

  
	
  Fiscal Quarter ending June 30, 2008

  	
   

  	
  1.83 to 1

  	
   

  
	
  Fiscal Quarter ending September 30, 2008

  	
   

  	
  1.89 to 1

  	
   

  
	
  Fiscal Quarters ending December 31, 2008

  	
   

  	
  1.95 to 1

  	
   

  
	
  Fiscal Quarter ending March 31, 2009

  	
   

  	
  1.97 to 1

  	
   

  
	
  Fiscal Quarter ending June 30, 2009

  	
   

  	
  2.00 to 1

  	
   

  
	
  Fiscal Quarter ending September 30, 2009

  	
   

  	
  2.02 to 1

  	
   

  
	
  Fiscal Quarters ending December 31, 2009

  	
   

  	
  2.05 to 1

  	
   

  
	
  Fiscal Quarter ending March 31, 2010

  	
   

  	
  2.26 to 1

  	
   

  
	
  Fiscal Quarter ending June 30, 2010

  	
   

  	
  2.47 to 1

  	
   

  
	
  Fiscal Quarter ending September 30, 2010

  	
   

  	
  2.69 to 1

  	
   

  
	
  Fiscal Quarters ending December 31, 2010

  	
   

  	
  2.90 to 1

  	
   

  
	
  Fiscal Quarter ending March 31, 2011

  	
   

  	
  3.15 to 1

  	
   

  
	
  Fiscal Quarter ending June 30, 2011

  	
   

  	
  3.40 to 1

  	
   

  
	
  Fiscal Quarter ending September 30, 2011

  	
   

  	
  3.65 to 1

  	
   

  
	
  Fiscal Quarters ending December 31, 2011

  	
   

  	
  3.90 to 1

  	
   

  
	
  Fiscal Quarters ending December 31, 2012

  	
   

  	
  3.80 to 1

  	
   

  
	
  Fiscal Quarters ending December 31, 2013

  	
   

  	
  3.90 to 1

  	
   

  
	
  Fiscal Quarters ending December 31, 2014

  	
   

  	
  4.10 to 1

  	
   

  

 

(c)           For
purposes of determining compliance with the covenants in clauses (a) and
(b), any equity investment made to the Borrowers after the Effective
Date and on or prior to the day that is 20 days after the day on which
financial statements are required to be delivered for a Fiscal Quarter shall,
at the request of the Borrowers, be included in the calculation of Adjusted
EBITDA for the purposes of determining compliance with such covenant at the end
of such Fiscal Quarter and applicable subsequent periods (any such equity contribution
so included in the calculation of Adjusted EBITDA, a “Specified Equity
Contribution”); provided that (i) in each four consecutive Fiscal
Quarter period there shall be a period of at least three consecutive Fiscal
Quarters in which no Specified Equity Contribution is made and (ii) in each
eight consecutive Fiscal Quarter period there shall be a period of at least
four consecutive Fiscal Quarters in which no Specified Equity Contribution is
made.

 

SECTION 6.12       Amendment of Certain Documents. No
Borrower will, nor will they permit their respective subsidiaries to, amend or
terminate its articles of incorporation, charter, certificate of formation,
by-laws, operating or management agreement (with respect to an LLC), any
Revolving Loan Document or partnership agreement (with respect to a
partnership), the

 

66

 

Management Agreement, the Bonus
Plan or (if applicable) the IBR Acquisition Documentation in a manner materially
adverse to the Secured Parties.

 

SECTION 6.13       Permitted Dispositions. The
Borrowers will not, nor will they permit their respective subsidiaries to,
Dispose of any of their respective assets to any Person in one transaction or
series of transactions unless such Disposition is (a) inventory or
obsolete, damaged, worn out or surplus property Disposed of in the ordinary
course of its business, (b) permitted by Section 6.03, (c) the
licensing, as either licensor or licensee, of patents, trademarks, copyrights
and know-how to or from third Persons or the Borrowers in the ordinary course
of business or (d) (i) for fair market value and the consideration received
consists of no less than 75% in cash or Permitted Investments, (ii) after
giving effect to any such Disposition, no Default shall have occurred and be
continuing and (iii) the Net Cash Proceeds from such Disposition in excess of
the amount set forth in the last sentence of Section 6.03(a) are applied
pursuant to Section 2.09(b)(i).

 

SECTION 6.14       Sale and Leaseback. Except as
permitted under Section 6.03, the Borrowers will not, and will not
permit any of their respective subsidiaries to, directly or indirectly enter
into any agreement or arrangement providing for the sale or transfer by it of
any property (now owned or hereafter acquired) to a Person and the subsequent
lease or rental of such property or other similar property from such Person.

 

SECTION 6.15       Accounting Policies and Reporting
Practices. The Borrowers will not, nor will they permit their respective
subsidiaries to, make any changes to the accounting policies and financial
reporting practices that are in effect as of the Effective Date, except as
required by or in conformity with GAAP.

 

ARTICLE VII

 

Events of Default

 

If any of the following events (“Events of Default”) shall
occur:

 

(a)           the
Borrowers shall fail to pay any principal of any Loan after the same shall
become due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise;

 

(b)           the
Borrowers shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in clause (a) of this Article VII)
payable under this Agreement, within three Business Days after the same shall
become due and payable;

 

(c)           any
representation or warranty made or deemed made by or on behalf of any Loan
Party in this Agreement or any Loan Document or any amendment or modification
thereof or waiver thereunder, or in any certificate or financial statement
furnished pursuant to this Agreement or any Loan Document or any amendment or
modification thereof or waiver thereunder, shall prove to have been materially
incorrect when made or deemed made or confirmed;

 

67

 

(d)           any
Loan Party shall fail to observe or perform any covenant, condition or
agreement contained in Sections 5.02(a), 5.03 (with respect to a
Loan Party’s existence), 5.08, or in Article VI (other than 6.07
and 6.15);

 

(e)           any
Loan Party shall fail to observe or perform any covenant, condition or
agreement contained in this Agreement or the other Loan Documents (other than
those covenants, conditions or agreements which constitute a default under
another clause of this Article VII), and such failure shall continue
unremedied for a period of (i) 10 days if such breach relates to terms or
provisions of Sections 5.01, 5.02 (other than Section 5.02(a)),
5.09, 6.07 and 6.15 of this Agreement or (ii) 30 days if
such breach relates to terms or provisions of any other section of this Agreement
or the other Loan Documents;

 

(f)            any
Loan Party shall (i) default in making any payment of any principal of any
Material Indebtedness on the scheduled or original due date with respect
thereto; or (ii) default in making any payment of any interest on any such
Material Indebtedness beyond the period of grace, if any, provided in the
instrument or agreement under which such Material Indebtedness was created; or
(iii) default in the observance or performance of any other agreement or
condition relating to any such Material Indebtedness or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other
event of default shall occur, the effect of which payment or other default or
other event of default is to cause, or to permit the holder or beneficiary of
such Material Indebtedness (or a trustee or agent on behalf of such holder or
beneficiary) to cause, with the giving of notice if required, such Material
Indebtedness to become due prior to its stated maturity or to become subject to
a mandatory offer to purchase by the obligor thereunder or to become payable; provided,
that this clause (f) shall not apply to secured Indebtedness that becomes due
as a result of the sale, transfer, destruction or other disposition of the Property
or assets securing such Material Indebtedness if such sale, transfer,
destruction or other disposition is not prohibited hereunder and under the
documents providing for such Indebtedness;

 

(g)           an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of any
Loan Party or its debts, or of a substantial part of its assets, under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law
now or hereafter in effect or (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for any Loan Party or
for a substantial part of its assets, and, in any such case, such proceeding or
petition shall continue undismissed for 60 days or an order or decree approving
or ordering any of the foregoing shall be entered;

 

(h)           any
Loan Party shall (i) voluntarily commence any proceeding or file any petition
seeking liquidation, reorganization or other relief under any Federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect, (ii) consent to the institution of, or fail to contest in a timely
and appropriate manner, any proceeding or petition described in clause (g) of this
Article, (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for such Loan Party or
for a substantial part of its assets, (iv) file an answer admitting the
material allegations of a petition filed against it in any such proceeding, (v)
make a general assignment

 

68

 

for the benefit of creditors or (vi) take any action for the purpose of
effecting any of the foregoing;

 

(i)            any
Loan Party shall become unable, admit in writing its inability or fail
generally to pay its debts as they become due;

 

(j)            (i)
one or more judgments or decrees for the payment of money shall be entered
against any Loan Party (to the extent not paid or fully covered by insurance or
effective indemnity) of $20,000,000 or more, and all such judgments or decrees
shall not have been vacated, discharged, stayed or bonded pending appeal within
45 days from the entry thereof or (ii) one or more non-monetary judgments or
orders shall be entered against any Loan Party that has had, or could
reasonably be expected to have, a Material Adverse Effect;

 

(k)           an
ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in a Material Adverse Effect;

 

(l)            a
Change in Control shall occur;

 

(m)          any
Collateral Document shall for any reason fail to create a valid and perfected
first priority security interest in any Collateral with a fair market value in
excess of $500,000 purported to be covered thereby, except as permitted by the
terms of this Agreement or any Collateral Document, or any Collateral Document
shall fail to remain in full force or effect in any material respect or any
action shall be taken by any Loan Party to discontinue or to assert the
invalidity or unenforceability of any Collateral Document or security interest
in any Collateral with a fair market value in excess of $500,000; provided,
that there shall be no Event of Default under this clause (m) to the extent
such Event of Default arises from (A) the resignation of the Administrative
Agent or (B) the negligence or willful misconduct of the Administrative Agent
following a reasonable request from the Administrative Borrower to execute any
document or take any other action relating to such Collateral Document or the
Liens granted thereunder;

 

(n)           any
material provision of any Loan Document for any reason ceases to be valid,
binding and enforceable in accordance with its terms (or any Loan Party shall
challenge the enforceability of any Loan Document or shall assert in writing,
that any provision of any of the Loan Documents has ceased to be or otherwise
is not valid, binding and enforceable in accordance with its terms); or

 

(o)           any
Subsidiary Guaranty executed and delivered by a Subsidiary with a fair market
value in excess of $500,000 shall fail to remain in full force or effect or any
action by a Loan Party shall be taken to discontinue or to assert the
invalidity or unenforceability of any Subsidiary Guaranty, or any Subsidiary
Guarantor shall fail to pay any amount due pursuant to any Subsidiary Guaranty
to which it is a party, or any Subsidiary Guarantor shall deny that it has any
further liability under the Subsidiary Guaranty to which it is a party, or
shall give notice to such effect;

 

then, and in
every such event (other than an event with respect to any Loan Party described
in clause (g) or (h) of this Article VII), and at any time thereafter
during the continuance of such

 

69

 

event, the
Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Administrative Borrower, declare the Loans then outstanding to be
due and payable in whole (or in part, in which case any principal not so
declared to be due and payable may thereafter be declared to be due and
payable), and thereupon the principal of the Loans so declared to be due and
payable, together with accrued interest thereon and all fees and other
obligations of the Borrowers accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Borrowers; and in case of any event with
respect to any Loan Party described in clause (g) or (h) of this Article VII,
the principal of the Loans then outstanding, together with accrued interest
thereon and all fees and other obligations of the Borrowers accrued hereunder,
shall automatically become due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the
Borrowers. Upon the occurrence and the continuance of an Event of Default, the
Administrative Agent may, and at the request of the Required Lenders shall,
exercise any rights and remedies provided to the Administrative Agent under the
Loan Documents or at law or equity, including all remedies provided under the
UCC and the PPSA.

 

ARTICLE VIII

 

The Administrative Agent

 

Each of the
Lenders hereby irrevocably appoints the Administrative Agent as its agent and
authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms
of the Loan Documents, together with such actions and powers as are reasonably
incidental thereto. Each of the Lenders hereby irrevocably authorizes the
Administrative Agent to enter into the Intercreditor Agreement and consents to
be bound by the terms of the Intercreditor Agreement.

 

The Person
serving as the Administrative Agent hereunder shall have the same rights and
powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent, and such bank and its
Affiliates may accept deposits from, lend money to and generally engage in any
kind of business with the Loan Parties or any subsidiary of a Loan Party or
other Affiliate thereof as if it were not the Administrative Agent hereunder.

 

The Administrative
Agent shall not have any duties or obligations except those expressly set forth
in the Loan Documents. Without limiting the generality of the foregoing, (a)
the Administrative Agent shall not be subject to any fiduciary or other implied
duties, regardless of whether an Event of Default has occurred and is
continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated by the Loan Documents that the
Administrative Agent is required to exercise in writing as directed by the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02), and (c)
except as expressly set forth in the Loan Documents, the Administrative Agent
shall not have any duty to disclose, and shall not be liable for the failure to
disclose, any information relating to any Loan Party or any of its subsidiaries
that is communicated to or obtained by the bank serving as Administrative Agent
or any of its Affiliates

 

70

 

in any capacity. The Administrative Agent shall not be liable for any
action taken or not taken by it with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02) or in the
absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Event of Default unless and
until written notice thereof is given to the Administrative Agent by any
Borrower or a Lender, and the Administrative Agent shall not be responsible for
or have any duty to ascertain or inquire into (i) any statement, warranty
or representation made in or in connection with any Loan Document,
(ii) the contents of any certificate, report or other document delivered
hereunder or in connection with any Loan Document, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth in any Loan Document, (iv) the validity, enforceability, effectiveness or
genuineness of any Loan Document or any other agreement, instrument or
document, or (v) the satisfaction of any condition set forth in Article IV,
the Closing Checklist or elsewhere in any Loan Document, other than to confirm
receipt of items expressly required to be delivered to the Administrative
Agent.

 

The
Administrative Agent shall be entitled to rely upon, and shall not incur any
liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to be made by the proper Person, and shall not incur any liability for
relying thereon. The Administrative Agent may consult with legal counsel (who
may be counsel for a Loan Party), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

 

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

 

The
Administrative Agent may resign as Administrative Agent upon 30 days’ notice to
the Lenders and the Administrative Borrower effective upon appointment of a
successor Administrative Agent. If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Loan Documents, then
the Required Lenders shall appoint from among the Lenders a successor agent for
the Lenders, which successor agent shall (unless an Event of Default under
clause (a), (b), (g), (h) or (i) of Article VII shall have
occurred and be continuing) be subject to approval by the Administrative
Borrower (which approval shall not be unreasonably withheld or delayed),
whereupon such successor agent shall succeed to the rights, powers and duties
of the Administrative Agent, and the term “Administrative Agent” shall mean
such successor agent effective upon such appointment and approval, and the
former Administrative Agent’s rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any

 

71

 

of the parties to this Agreement or any holders of the Loans. If no
successor Administrative Agent shall have been so appointed by the Required
Lenders with such consent of the Administrative Borrower and shall have
accepted such appointment within 30 days after the retiring Administrative
Agent’s giving of notice of resignation, then the retiring Administrative Agent
may, on behalf of the Lenders and with the consent of the Administrative
Borrower (such consent not to be unreasonably withheld or delayed), appoint a
successor Administrative Agent, that shall be a bank that has an office in New
York, New York with a combined capital and surplus of at least $500,000,000. After
any retiring Administrative Agent’s resignation as Administrative Agent, the
provisions of this Article VIII shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement and the other Loan Documents.

 

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

 

Each Lender
hereby appoints each other Lender as its agent for the purpose of perfecting
Liens, for the benefit of the Administrative Agent and the Secured Parties, in
assets which, in accordance with Article 9 of the UCC or any other applicable
law can be perfected only by possession. Should any Lender (other than the
Administrative Agent) obtain possession of any such Collateral, such Lender
shall notify the Administrative Agent thereof, and, promptly upon the
Administrative Agent’s request therefor shall deliver such Collateral to the
Administrative Agent or otherwise deal with such Collateral in accordance with
the Administrative Agent’s instructions.

 

Each Lender
hereby agrees that (a) it is deemed to have requested that the Administrative
Agent furnish such Lender, promptly after it becomes available, a copy of each
Report prepared by or on behalf of the Administrative Agent; (b) the
Administrative Agent (i) makes no representation or warranty, express or
implied, as to the completeness or accuracy of any Report or any of the
information contained therein or any inaccuracy or omission contained in or
relating to a Report, or (ii) shall not be liable for any information contained
in any Report; (c) the Reports are not comprehensive audits or examinations,
and that the Administrative Agent or any other party performing any audit or
examination will inspect only specific information regarding the Loan Parties
and will rely significantly upon the Loan Parties’ books and records, as well
as on representations of the Loan Parties’ personnel and that the
Administrative Agent undertakes no obligation to update, correct or supplement
the Reports; (d) it will keep all Reports confidential and strictly for its
internal use, not share the Report with any Loan Party and not to distribute
any Report to any other Person except as otherwise permitted pursuant to this
Agreement; and (e) without limiting the generality of any other indemnification
provision contained in this Agreement, it will pay and protect, and indemnify,
defend, and hold the Administrative Agent and any such other Person preparing a
Report harmless from and against, the claims, actions, proceedings, damages,
costs, expenses, and other amounts (including

 

72

 

reasonable
attorney fees) incurred by the Administrative Agent and any such other Person
preparing a Report as the direct or indirect result of any third parties who
might obtain all or part of any Report through the indemnifying Lender.

 

Unless it has
actual knowledge evidenced by way of written notice from any such Secured Party
or Loan Party to the contrary, the Administrative Agent, in acting in such
capacity under the Loan Documents, shall be entitled to assume that no Swap
Obligations or Obligations in respect thereof are in existence or outstanding
between any Secured Party and any Loan Party.

 

Neither the
Syndication Agent nor the Documentation Agent (each as referred to on the cover
page) listed on the first page hereof shall have any right, power, obligation,
liability, responsibility or duty under this Agreement other than those
applicable to all Lenders as such.

 

ARTICLE IX

 

Miscellaneous

 

SECTION 9.01       Notices. (a)  Except in the case of notices and other
communications expressly permitted to be given by telephone (and subject to Section
9.01(b)), all notices and other communications provided for herein shall be
in writing and shall be delivered by hand or overnight courier service, mailed
by certified or registered mail or sent by facsimile, as follows:

 

(i)            if
to any Loan Party, c/o the Administrative Borrower at:

 

Talecris Biotherapeutics, Inc.

P.O. Box 13887

79 TW Alexander Drive

4101 Research Commons

Research Triangle Park, NC  27709

Attention:    General CounselFax:  (919) 316-6669

 

With copies to:

 

Talecris Holdings, LLC

c/o Cerberus Capital Management, L.P.

299 Park Avenue, 22nd Floor

New York, NY  10171

Fax:  (212) 661-3159

 

and

 

Mark Neporent

General Counsel

Cerberus Capital Management, L.P.

299 Park Avenue, 22nd Floor

New York, NY  10171

Fax:  (212) 891-1540

 

73

 

(ii)           if
to the Administrative Agent, to Morgan Stanley at:

 

1585 Broadway

New York, NY 10036

Attention:      Talecris Account Manager

 

(iii)          if
to any other Lender, to it at its address or facsimile number set forth in its
Administrative Questionnaire.

 

All such
notices and other communications (i) sent by hand or overnight courier service,
or mailed by certified or registered mail, shall be deemed to have been given
when received, or (ii) sent by facsimile shall be deemed to have been
given when sent, provided that if not given during normal business hours
for the recipient, shall be deemed to have been given at the opening of
business on the next Business Day for the recipient.

 

(b)           Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications (including e-mail and internet or intranet
websites) pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Article II
(other than borrowing requests referred to in Section 2.04, to the
extent set forth in such Section) or to compliance and no Event of Default
certificates delivered pursuant to Section 5.01(d) unless otherwise
agreed by the Administrative Agent and the applicable Lender. The
Administrative Agent or the Administrative Borrower (on behalf of all of the
Loan Parties) may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications. All such notices and other
communications (i) sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other
written acknowledgement), provided that if not given during the normal
business hours of the recipient, such notice or communication shall be deemed
to have been given at the opening of business on the next Business Day for the
recipient, and (ii) posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing subsection (b)(i) of notification that
such notice or communication is available and identifying the website address
therefor.

 

(c)           Any
party hereto may change its address or facsimile number for notices and other
communications hereunder by notice to the other parties hereto.

 

SECTION 9.02       Waivers; Amendments. (a)  No failure or delay by the Administrative
Agent or any Lender in exercising any right or power hereunder or under any
other Loan Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Administrative Agent and the Lenders hereunder and
under any other Loan Document are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision
of any Loan Document or consent to any departure by any Borrower therefrom
shall in any event be effective unless the same shall be permitted by

 

74

 

Section 9.02(b), and
then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. Without limiting the generality of the foregoing,
the making of a Loan shall not be construed as a waiver of any Event of
Default, regardless of whether the Administrative Agent or any Lender may have
had notice or knowledge of such Event of Default at the time.

 

(b)           Neither
this Agreement nor any other Loan Document nor any provision hereof or thereof
may be waived, amended or modified except (i) in the case of this Agreement,
pursuant to an agreement or agreements in writing entered into by the Borrowers
and the Required Lenders, or (ii) in the case of any other Loan Document,
pursuant to an agreement or agreements in writing entered into by the
Administrative Agent and the Loan Party or Loan Parties that are parties
thereto, with the consent of the Required Lenders; provided that no such
agreement shall (i) increase the Term Loan Commitment of any Lender without the
written consent of such Lender, (ii) reduce or forgive the principal amount of
any Loan or reduce the rate of interest thereon, or reduce or forgive any
interest or fees payable hereunder, without the written consent of each Lender
directly adversely affected thereby, (iii) postpone the maturity of any Loan,
or any scheduled date of payment of the principal amount of any Loan, or any
date for the payment of any interest, fees or other Obligations payable
hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Term Loan Commitment, without
the written consent of each Lender directly adversely affected thereby, (iv)
change the definition of “Applicable Percentage” or Section 2.16(a) or (b)
in a manner that would alter the manner in which payments are shared, without
the written consent of each Lender, (v) change any of the provisions of this Section
9.02(b) or the definition of “Required Lenders” or any other provision of
any Loan Document specifying the number or percentage of Lenders required to
waive, amend or modify any rights thereunder or make any determination or grant
any consent thereunder, without the written consent of each Lender, or
(vi) except as otherwise permitted by the terms of any Loan Document,
release any Borrower from its obligations under this Agreement or any
Subsidiary Guarantor from its obligations under the Subsidiary Guaranty except
as provided in Section 9.02(d) or (e) or in any Collateral
Document, release all or substantially all of the Collateral, without the
written consent of each Lender; provided
further that no such agreement shall amend, modify or otherwise affect the
rights or duties of the Administrative Agent hereunder without the prior
written consent of the Administrative Agent.

 

(c)           The
Administrative Agent may (i) amend the Commitment Schedule to reflect
assignments entered into pursuant to Section 9.04, (ii) waive payment of
the fee required under Section 9.04(b)(ii)(C) and (iii) implement any
provisions contained in the Fee Letter, in each case without obtaining the
consent of any other party to this Agreement.

 

(d)           The
Lenders hereby irrevocably authorize the Administrative Agent, at its option
and in its sole discretion, to release any Liens granted to the Administrative
Agent by the Loan Parties on any Collateral (i) upon the termination of the
Term Loan Commitment, payment and satisfaction in full in cash of all
Obligations (other than Unliquidated Obligations), payment and satisfaction in
full in cash or cash collateralization, or the making of other arrangements
satisfactory to the Administrative Agent and the applicable counterparty with
respect thereto, of all Obligations constituting Swap Obligations, (ii)
constituting property being sold or disposed of if the Loan Party disposing of
such property (or the Administrative Borrower

 

75

 

on behalf of such Loan Party) certifies to the Administrative Agent
that the sale or disposition is made in compliance with the terms of this
Agreement (and the Administrative Agent may rely conclusively on any such
certificate, without further inquiry), (iii) constituting property in which no
Loan Party has at any time during the term of this Agreement owned any
interest, (iv) constituting property leased to a Loan Party under a lease
which has expired or been terminated in a transaction permitted under this
Agreement, (v) owned by or leased to any Loan Party which is subject to a
purchase money security interest or which is a Capital Lease Obligation, in
either case, entered into by such Loan Party pursuant to Section 6.01,
or (vi) as required to effect any sale or other disposition of such Collateral
in connection with any exercise of remedies of the Administrative Agent and the
Lenders pursuant to Article VII. Upon request by the Administrative
Agent at any time, the Lenders will confirm in writing the Administrative Agent’s
authority to release any Liens upon particular types or items of Collateral
pursuant to this Section 9.02. Except as provided in the preceding
sentence, the Administrative Agent will not release any Liens on Collateral
without the prior written authorization of the Required Lenders; provided
that, the Administrative Agent may in its discretion, release its Liens on
Collateral valued in the aggregate not in excess of $10,000,000 during any
calendar year without the prior written authorization of the Required Lenders.

 

(e)           Upon
at least five Business Days prior written request by the Administrative
Borrower, the Administrative Agent shall (and is hereby irrevocably authorized
by the Lenders to) execute such documents as may be necessary to evidence the
release of its Liens upon such Collateral to the extent such release is
authorized by Section 9.02(d); provided that (i) the
Administrative Agent shall not be required to execute any such document on
terms which, in the Administrative Agent’s opinion, would expose the
Administrative Agent to liability or create any obligation or entail any
consequence other than the release of such Liens without recourse or warranty,
and (ii) such release shall not in any manner discharge, affect, or impair the
Obligations or any Liens (other than those expressly being released) upon (or
obligations of the Loan Parties in respect of) all interests retained by the
Loan Parties, including the proceeds of any sale, all of which shall continue
to constitute part of the Collateral.

 

(f)            If,
in connection with any proposed amendment, waiver or consent requiring the
consent of “each Lender” or “each Lender directly adversely affected thereby,”
the consent of the Required Lenders is obtained, but the consent of other
necessary Lenders is not obtained (any such Lender whose consent is necessary
but not obtained being referred to herein as a “Non-Consenting Lender”),
then, so long as the Administrative Agent is not a Non-Consenting Lender, the
Administrative Borrower may, at its sole cost and expense,  elect to replace a Non-Consenting Lender as a
Lender party to this Agreement, provided that, concurrently with such
replacement, (i) another bank or other entity which is reasonably satisfactory
to the Administrative Borrower and the Administrative Agent, including, without
limitation, any member of the Sponsor Group or Affiliate thereof, shall agree,
as of such date, to purchase for cash the Loans and other Obligations due to
the Non-Consenting Lender pursuant to an Assignment and Assumption and to
become a Lender for all purposes under this Agreement and to assume all
obligations of the Non-Consenting Lender to be terminated as of such date and
to comply with the requirements of Section 9.04(b), and (ii) the
Borrowers shall pay to such Non-Consenting Lender in same day funds on the day
of such replacement (1) all interest, fees and other amounts then accrued but
unpaid to such Non-Consenting Lender by the Borrowers hereunder to and
including the date of termination, including without limitation payments due to

 

76

 

such Non-Consenting Lender under Sections 2.13 and 2.15,
and (2) an amount, if any, equal to the payment which would have been due to
such Lender on the day of such replacement under Section 2.14 had the
Loans of such Non-Consenting Lender been prepaid on such date rather than sold
to the replacement Lender.

 

SECTION 9.03       Expenses; Indemnity; Damage Waiver.
(a)  Each Borrower hereby jointly and
severally agrees to pay (i) all reasonable, documented out of pocket expenses
incurred by the Administrative Agent and its Affiliates from and after
September 1, 2006, including the reasonable fees, charges and disbursements of
outside counsel for the Administrative Agent, in connection with the
syndication and distribution (including, without limitation, via the internet
or through a service such as Intralinks) of the credit facilities provided for
herein, the preparation and administration of the Loan Documents or any
amendments, modifications or waivers of the provisions of the Loan Documents
(whether or not the transactions contemplated hereby or thereby shall be
consummated), and (ii) all reasonable, documented expenses incurred by the
Administrative Agent or any Lender, including the out-of-pocket fees, charges
and disbursements of any counsel for the Administrative Agent or any Lender, in
connection with the enforcement, collection or protection of its rights in
connection with the Loan Documents, including its rights under this Section
9.03, or in connection with the Loans made hereunder, including all such
expenses incurred during any workout, restructuring or negotiations in respect
of such Loans. Expenses being reimbursed by the Borrowers under this Section
9.03 include, without limiting the generality of the foregoing, costs and
expenses incurred in connection with:

 

(i)            Subject
to Section 5.10, appraisals of all or any portion of the Collateral
(including travel, lodging, meals and other out of pocket expenses of the
appraisers);

 

(ii)           field
examinations and the preparation of Reports referred to in Section 5.06
at either the Administrative Agent’s then customary charge (such charge is
currently $1,000 per day (or portion thereof) for each Person employed by the
Administrative Agent with respect to each field examination) or at the fee
charged by a third party retained by the Administrative Agent, plus in
each case reasonable, documented travel, lodging, meals and other out of pocket
expenses;

 

(iii)          lien
and title searches and title insurance;

 

(iv)          taxes,
fees and other charges for recording the Mortgages, filing financing statements
and continuations, and other actions to perfect, protect, and continue the
Administrative Agent’s Liens;

 

(v)           sums
paid or incurred to take any action required of any Borrower under the Loan
Documents that such Borrower fails to pay or take; and

 

(vi)          costs
and expenses of forwarding loan proceeds, collecting checks and other items of
payment, and establishing and maintaining the accounts and lock boxes, and
costs and expenses of preserving and protecting the Collateral.

 

77

 

All of the
foregoing costs and expenses may be charged to the Borrowers as described in Section
2.16(c).

 

(b)           Each
Borrower hereby jointly and severally agrees to indemnify the Administrative
Agent, Syndication Agent, Documentation Agent, Joint Lead Arranger and each
Lender, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, penalties, liabilities,
obligations, and reasonable, documented costs, disbursements and expenses,
including the fees, charges and disbursements of any counsel for any
Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of any actual or threatened claim, action,
investigation or proceeding (regardless of whether the Indemnitee is a party
thereto) relating to or otherwise with respect to (i) the execution or delivery
of the Loan Documents or any certificate, agreement or instrument contemplated
thereby, the performance by the parties hereto of their respective obligations
thereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or the use of the proceeds therefrom or
(iii) any actual or alleged presence or release of Hazardous Materials on or
from any property owned or operated by any Borrower or any of its subsidiaries,
or any Environmental Liability related in any way to any Borrower or any of its
subsidiaries; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
penalties, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee or any of
such Indemnitee’s Related Parties. To the extent permitted by applicable law,
no Loan Party shall assert, and each Loan Party hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages  (as
opposed to direct or actual damages) (whether or not the claim therefor is
based on contract, tort or duty imposed by any applicable legal requirement)
arising out of, in connection with, arising out of, as a result of, or in any
way related to, this Agreement or any Loan Document or any agreement or
instrument contemplated hereby or thereby or referred to herein or therein, the
transactions contemplated hereby or thereby, any Loan or the use of the
proceeds thereof or any act or omission or event occurring in connection
therewith, and the Loan Parties hereby waive, release and agree not to sue upon
any such claim or any such damages, whether or not accrued and whether or not
known or suspected to exist in its favor.

 

(c)           To
the extent that the Borrowers fail to pay any amount required to be paid by
them to the Administrative Agent under Section 9.03(a) or (b)
(and without limiting their obligation to do so), each Lender severally agrees
to pay to the Administrative Agent such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, penalty, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent in its capacity as such.

 

(d)           The
relationship between any Loan Party on the one hand and the Lenders and the
Administrative Agent on the other hand shall be solely that of debtor and
creditor. Neither the Administrative Agent nor any Lender (i) shall have any
fiduciary responsibilities to any Loan Party, or (ii) undertakes any
responsibility to any Loan Party to

 

78

 

review or inform such Loan Party of any matter in connection with any
phase of any Loan Party’s business or operations.

 

(e)           All
amounts due under this Section shall be payable promptly after written demand
therefor.

 

SECTION 9.04       Successors and Assigns. (a)  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective permitted successors and assigns permitted hereby, except that (i)
no Borrower may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by a Borrower without such consent shall be null and
void), it being understood that mergers, consolidations and other corporate
changes permitted by Section 6.03 of the Credit Agreement shall not be deemed
an assignment for purposes of this sentence, and (ii) no Lender may assign or
otherwise transfer its rights or obligations hereunder except in accordance
with this Section. Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants (to the extent
provided in Section 9.04(c)) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

 

(b)           (i)            Subject to the conditions set forth
in Section 9.04(b)(ii), any Lender may assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Term Loan Commitment and the Loans at the
time owing to it) with the prior written consent (such consent not to be
unreasonably withheld, delayed or conditioned) of:

 

(A)          the
Administrative Borrower, provided that no consent of the Administrative
Borrower shall be required for an assignment to a Lender, an Affiliate of a
Lender, an Approved Fund or, if an Event of Default under clause (g) or (h) of Article
VII has occurred and is continuing, any other assignee or for any
assignments made by Morgan Stanley or GSCP or any of their respective
Affiliates until the Primary Syndication has been completed; and

 

(B)           the
Administrative Agent, provided that no consent of the Administrative
Agent shall be required for an assignment to a Lender, an Affiliate of a Lender
or an Approved Fund.

 

(ii)           Assignments
shall be subject to the following additional conditions:

 

(A)          except
in the case of an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Term Loan Commitment or Loans, the amount of the Term Loan Commitment
or Loans of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent) shall not be less than

 

79

 

$1,000,000 unless each of the Administrative Borrower and the
Administrative Agent otherwise consent (such consent not to be unreasonably withheld
or delayed), provided that no such consent of the Administrative
Borrower shall be required if an Event of Default under clause (g) or (h) of Article
VII has occurred and is continuing;

 

(B)           each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement, provided
that this clause shall not be construed to prohibit the assignment of a
proportionate part of all the assigning Lender’s rights and obligations in respect
of Term Loan Commitments or Loans; and

 

(C)           the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

 

For the
purposes of this Section 9.04(b), the term “Approved Fund” has
the following meaning:

 

“Approved
Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans, commercial loans or
similar extensions of credit and that is administered or managed by (i) a
Lender, (ii) an Affiliate of a Lender, or (iii) an entity or an Affiliate of an
entity that administers or manages a Lender.

 

(iii)          Subject
to acceptance and recording thereof pursuant to Section 9.04(b)(iv),
from and after the effective date specified in each Assignment and Assumption
the assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections
2.13, 2.14, 2.15 (with respect to periods it was a Lender)
and 9.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 9.04
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section
9.04(c).

 

(iv)          The
Administrative Agent, acting for this purpose as an agent of the Borrowers,
shall maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Term Loan Commitment of, and principal amount of the
Loans owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”) and give prompt written notice to the Borrower. The entries
in the Register shall be conclusive absent manifest error, and the Borrowers,
the Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by

 

80

 

the Borrowers and any Lender, at any reasonable time and from time to
time upon reasonable prior notice.

 

(v)           Upon
its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in Section 9.04(b) and any written consent
to such assignment required by Section 9.04(b), the Administrative Agent
shall accept such Assignment and Assumption and record the information
contained therein in the Register; provided that if either the assigning
Lender or the assignee shall have failed to make any payment required to be
made by it pursuant to Section 2.16(d) or 9.03(c), the
Administrative Agent shall have no obligation to accept such Assignment and
Assumption and record the information therein in the Register unless and until
such payment shall have been made in full, together with all accrued interest
thereon. Notwithstanding anything to the contrary in this Agreement, no
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided herein.

 

(c)           (i)            Any Lender may, without the consent
of any Borrower or the Administrative Agent sell participations to one or more
banks or other entities (a “Participant”) in all or a portion of such
Lender’s rights and obligations under this Agreement (including all or a portion
of its Term Loan Commitment and the Loans owing to it); provided that
(A) such Lender’s obligations under this Agreement shall remain unchanged, (B)
such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, and (C) the Borrowers, the Administrative
Agent and the other Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver described in the first proviso
to Section 9.02(b) that directly and adversely affects such Participant.
Subject to Section 9.04(c)(ii), each Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.13, 2.14
and 2.15 (and subject to the limitations thereof) to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to Section
9.04(b), provided such Participant agrees to be subject to Sections
2.15 as though it were a Lender, and provided
further such Participant agrees to be subject to Section 2.17 as
though it were a Lender.

 

(ii)           Notwithstanding
anything to the contrary contained herein, (A) a Participant shall not be
entitled to receive any greater payment under Section 2.13, 2.14
or 2.15 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, (B) a Participant
shall not be entitled to the benefits of Section 2.15 unless the
Administrative Borrower is notified of the participation sold to such
Participant and (C) a Participant shall not be entitled to the benefits of Section
2.15 unless and such Participant agrees, for the benefit of the Borrowers,
to comply with Section 2.15(e) as though it were a Lender.

 

81

 

(d)           Each
Lender that sells a participation interest in all or a portion of such Lender’s
rights and obligations under this Agreement shall, as agent of the Borrower
solely for purposes of this Section 9.04, record in book entries (as defined in
Temporary Treasury Regulation § 5f.103-1) maintained by such Lender the name
and the amount of the participating interest of each Participant entitled to
receive payments in respect of such participating interest.

 

(e)           Any
Lender may, without the consent of the Administrative Borrower or the
Administrative Agent, at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of, or
securities issued by, such Lender, including without limitation any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section
9.04 shall not apply to any such pledge or assignment of a security
interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

 

SECTION 9.05       Survival. All covenants,
agreements, representations and warranties made by the Loan Parties in the Loan
Documents and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of the Loan Documents and the making of any
Loans, regardless of any investigation made by any such other party or on its
behalf and notwithstanding that the Administrative Agent or any Lender may have
had notice or knowledge of any Event of Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in
full force and effect as long as the principal of or any accrued interest on
any Loan or any fee or any other amount payable under this Agreement is
outstanding and unpaid. The provisions of Sections 2.13, 2.14, 2.15
and 9.03 and Article VIII shall survive and remain in full force
and effect regardless of the consummation of the transactions contemplated
hereby, the repayment of the Loans or the termination of this Agreement or any
provision hereof.

 

SECTION 9.06       Counterparts; Integration;
Effectiveness. This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract. This Agreement, the other Loan Documents, the Fee Letter, and
any other separate letter agreements with respect to fees payable to the
Administrative Agent constitute the entire contract among the parties relating
to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except
as provided in Section 4.01, this Agreement shall become effective when
it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Delivery of an executed counterpart
of a signature page of this Agreement by facsimile shall be effective as
delivery of a manually executed counterpart of this Agreement.

 

SECTION 9.07       Severability. Any provision of any
Loan Document held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such
invalidity, illegality or unenforceability without affecting the validity,
legality and

 

82

 

enforceability of the remaining provisions
thereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

 

SECTION 9.08       Right of Setoff. If an Event of
Default shall have occurred and be continuing or if any Loan Party becomes
insolvent, however evidenced, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final, but excluding tax, payroll and fiduciary
accounts) at any time held and other obligations at any time owing by such
Lender or Affiliate to or for the credit or the account of any Loan Party
against any of and all the Obligations held by such Lender which are then due
and payable, irrespective of whether or not such Lender shall have made any
demand under the Loan Documents and although such obligations owing by such
Lender or Affiliate may be unmatured. The rights of each Lender under this Section
9.08 are in addition to other rights and remedies (including other rights
of setoff) which such Lender may have.

 

SECTION 9.09       Governing Law; Jurisdiction; Consent
to Service of Process. (a)  THE LOAN
DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW
PROVISION) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL
BANKS.

 

(b)           EACH
BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK
STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO ANY LOAN DOCUMENTS, OR FOR RECOGNITION OR ENFORCEMENT OF
ANY JUDGMENT, AND EACH BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES
THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH
FEDERAL COURT. EACH BORROWER AGREES THAT A FINAL JUDGMENT (AFTER ANY APPEAL) IN
ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING
IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY
BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(c)           Each
Borrower hereby irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or any other Loan Document in any court
referred to in Section 9.09(b). Each Borrower hereby irrevocably waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court.

 

83

 

(d)           Each
party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 9.01. Nothing in this Agreement
or any other Loan Document will affect the right of any party to this Agreement
to serve process in any other manner permitted by law.

 

SECTION 9.10       Waiver of Jury Trial. EACH PARTY
HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

SECTION 9.11       Headings. Article and Section
headings and the Table of Contents used herein are for convenience of reference
only, are not part of this Agreement and shall not affect the construction of,
or be taken into consideration in interpreting, this Agreement.

 

SECTION 9.12       Confidentiality. Each of the
Administrative Agent and the Lenders agrees to maintain the confidentiality of
the Information (as defined below), except that Information may be disclosed
(a) to its and its Affiliates’ directors, officers, employees and agents,
including accountants, legal counsel, trustees and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to this
Agreement, (e) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder, (f) subject to
an agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective assignee
of or Participant in, any of its rights or obligations under this Agreement, or
(ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrowers and their obligations, (g)
with the written consent of the Administrative Borrower, or (h) to the extent
such Information (i) becomes publicly available other than as a result of a
breach of this Section, or (ii) becomes available to the Administrative Agent
or any Lender from a source other than the Borrowers. For the purposes of this Section
9.12, “Information” means all information received from the
Borrowers relating to the Borrowers or their respective businesses, other than
any such information that is available to the Administrative Agent or any
Lender on a nonconfidential basis prior to disclosure by the Borrowers. Any
Person required to maintain the confidentiality of Information as provided in
this Section 9.12 shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the

 

84

 

confidentiality of such Information as such
Person would accord confidential information of a similar nature.

 

SECTION 9.13       Several Obligations; Nonreliance;
Violation of Law. The respective obligations of the Lenders hereunder are
several and not joint and the failure of any Lender to make any Loan or perform
any of its obligations hereunder shall not relieve any other Lender from any of
its obligations hereunder. Each Lender hereby represents that it is not relying
on or looking to any margin stock for the repayment of the Borrowings provided
for herein. Anything contained in this Agreement to the contrary
notwithstanding, no Lender shall be obligated to extend credit to the Borrowers
in violation of any limitation or prohibition provided by any applicable
statute or regulation.

 

SECTION 9.14       USA PATRIOT Act. Each Lender that
is subject to the requirements of the USA Patriot Act (Title III of Pub. L.
107-56 (signed into law October 26, 2001)) (the “Act”) hereby notifies
the Borrowers that pursuant to the requirements of the Act, it is required to
obtain, verify and record information that identifies the Borrowers, which
information includes the names and addresses of the Borrowers and other
information that will allow such Lender to identify the Borrowers in accordance
with the Act.

 

SECTION 9.15       Disclosure. Each Borrower and each
Lender hereby acknowledges and agrees that the Administrative Agent, the
Syndication Agent, the Documentation Agent, the Lenders, and/or their
respective Affiliates from time to time may hold investments in, make other
loans to or have other relationships with any of the Borrowers and their
respective Affiliates.

 

SECTION 9.16       Execution of Loan Documents. The
Lenders hereby empower and authorize the Administrative Agent, on behalf of the
Lenders, to execute and deliver to the Borrowers the other Loan Documents and
all related agreements, certificates, documents, or instruments as shall be
necessary or appropriate to effect the purposes of the Loan Documents. Each
Lender agrees that any action taken by the Administrative Agent or the Required
Lenders in accordance with the terms of this Agreement or the other Loan
Documents, and the exercise by the Administrative Agent or the Required Lenders
of their respective powers set forth therein or herein, together with such
other powers that are reasonably incidental thereto, shall be binding upon all
of the Lenders. The Lenders acknowledge that all of the Obligations hereunder
constitute one debt, secured pari passu by all of the Collateral.

 

SECTION 9.17       Interest Rate Limitation. Notwithstanding
anything herein to the contrary, if at any time the interest rate applicable to
any Loan, together with all fees, charges and other amounts which are treated
as interest on such Loan under applicable law (collectively the “Charges”),
shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such
Loan in accordance with applicable law, the rate of interest payable in respect
of such Loan hereunder, together with all Charges payable in respect thereof,
shall be limited to the Maximum Rate and, to the extent lawful, the interest
and Charges that would have been payable in respect of such Loan but were not
payable as a result of the operation of this Section 9.17 shall be
cumulated and the interest and Charges payable to such Lender in respect of
other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together

 

85

 

with interest thereon at the Federal Funds
Effective Rate to the date of repayment, shall have been received by such
Lender.

 

SECTION 9.18       Administrative Borrower. Each
Borrower hereby irrevocably appoints Talecris Biotherapeutics, Inc. as the
borrowing agent and attorney-in-fact for the Borrowers (the “Administrative
Borrower”), which appointment shall remain in full force and effect unless
and until the Administrative Agent shall have received prior written notice
signed by all of the Borrowers that such appointment has been revoked and that
another Borrower has been appointed Administrative Borrower. Each Borrower
hereby irrevocably appoints and authorizes the Administrative Borrower (i) to
provide to the Administrative Agent and receive from the Administrative Agent
all notices with respect to Loans obtained for the benefit of any Borrower and
all other notices and instructions under the Loan Documents and (ii) to take
such action as the Administrative Borrower deems appropriate on its behalf to
obtain Loans and to exercise such other powers as are reasonably incidental
thereto to carry out the purposes of this Agreement. It is understood that the
handling of the Loans and Collateral of the Borrowers in a combined fashion, as
more fully set forth herein, is done solely as an accommodation to the
Borrowers in order to utilize the collective borrowing powers of the Borrowers
in the most efficient and economical manner and at their request, and that
neither the Administrative Agent nor any other Secured Party shall incur
liability to the Borrowers as a result hereof. Each of the Borrowers expects to
derive benefit, directly or indirectly, from the handling of the Loans and the
Collateral in a combined fashion since the successful operation of each
Borrower is dependent on the continued successful performance of the integrated
group. To induce the Administrative Agent and the other Secured Parties to do
so, and in consideration thereof, each of the Borrowers hereby jointly and
severally agrees to indemnify the Indemnitees and hold the Indemnitees harmless
against any and all liability, expense, loss or claim of damage or injury, made
against such Indemnitee by any of the Borrowers or by any third party
whosoever, arising from or incurred by reason of the Administrative Agent and
other Secured Parties relying on any instructions of the Administrative
Borrower.

 

86

 

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

 

	
   

  	
  TALECRIS
  BIOTHERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ John
  Hanson

  	
   

  
	
   

  	
  Name: John
  Hanson

  
	
   

  	
  Title: Exec
  VP & CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TALECRIS
  BIOTHERAPEUTICS HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ John
  Hanson

  	
   

  
	
   

  	
  Name: John
  Hanson

  
	
   

  	
  Title: Exec
  VP & CFO, Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PRECISION
  PHARMA SERVICES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ John
  Manson

  	
   

  
	
   

  	
  Name: John Hanson

  
	
   

  	
  Title: Exec
  VP & CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TALECRIS
  PLASMA RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ John
  Hanson

  	
   

  
	
   

  	
  Name: John
  Hanson

  
	
   

  	
  Title: Exec
  VP & CFO

  

 

87

 

	
   

  	
  MORGAN
  STANLEY SENIOR FUNDING, INC.,

  individually and as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ John
  McCann

  	
   

  
	
   

  	
  Name: John
  McCann

  
	
   

  	
  Title: Vice
  President

  

 

88

 

	
   

  	
  GOLDMAN
  SACHS CREDIT PARTNERS L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  
	
   

  	
   

  

 

89

 

COMMITMENT SCHEDULE

 

	
  Lender

  	
   

  	
  Term Loan Commitment

  	
   

  
	
  Morgan Stanley Senior Funding, Inc.

  	
   

  	
  $

  	
  420,000,000

  	
   

  
	
  Goldman Sachs Credit Partners L.P.

  	
   

  	
  $

  	
  280,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  700,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]