Document:

Exhibit
10.11

 

[EXECUTION
COPY]

 

 

 

SECOND 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

  	
  29

  
	
  SECTION 2.11

  	
  Interest

  	
  29

  
	
  SECTION 2.12

  	
  Alternate Rate of Interest

  	
  30

  
	
  SECTION 2.13

  	
  Increased Costs

  	
  31

  
	
  SECTION 2.14

  	
  Break Funding Payments

  	
  32

  
	
  SECTION 2.15

  	
  Taxes

  	
  32

  
	
  SECTION 2.16

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

  	
  34

  
	
  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

  	
  38

  
	
  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

  	
  41

  
	
  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

  	
  42

  
	
  SECTION 3.17

  	
  Security Interest in Collateral

  	
  43

  
	
  SECTION 3.18

  	
  Labor Disputes

  	
  43

  
	
  SECTION 3.19

  	
  Broker’s and Transaction Fees

  	
  43

  
	
  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 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

  	
  67

  
	
  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

  	
  75

  
	
  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

  	
  83

  
	
  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

  	
  86

  
	
  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

 

SECOND LIEN TERM LOAN CREDIT AGREEMENT

 

SECOND 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 First
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.

 

2

 

“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 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, 5.25% per annum and with respect to any
Eurodollar Loan constituting a Term Loan, 6.50% 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.

 

3

 

“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.

 

“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 

 

4

 

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.

 

“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).

 

5

 

“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 First 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 (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

 

6

 

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 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 First 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

 

7

 

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.

 

“Excluded
Equity Issuance” means any issuance of Equity Interests (i) by a Loan Party
to another Loan Party or (ii) 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 $33,000,000 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.

 

8

 

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

 

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

 

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

 

“First Lien
Term Loan Collateral” means any and all property owned or leased by a
Person subject to, or purported to be subject to, the First 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 First Lien
Term Loan Lenders, on behalf of itself and the other secured parties under the
First Lien Term Loans, to secure the First Lien Obligations under the First
Lien Term Loans.

 

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

 

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

 

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

 

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

 

“First Lien
Term Loans” means the First Lien Term Loans extended by the Lenders to the
Borrowers pursuant to the First Lien Term Loan Credit Agreement.

 

“First Lien
Termination Date” means the date on which all First Lien Term Loan
commitments have expired or been terminated and the principal of and interest
on each First Lien Term Loan and all other amounts due and payable under the
First Lien Term Loan Credit Agreement shall have been paid in full.

 

“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.

 

9

 

“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.

 

“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

 

10

 

(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
First Lien Term Loan Credit Agreement), the Administrative Agent (as defined in
the Revolving 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.

 

“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

 

11

 

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.

 

“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

 

12

 

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 First
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.

 

“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 $27,500,000. 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

 

13

 

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 eighth 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, 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.

 

14

 

“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 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.

 

15

 

“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;

 

(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

 

16

 

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 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.

 

17

 

“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.

 

“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.

 

18

 

“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.

 

“Secured
Parties” means, collectively, (i) the Administrative Agent and (ii) the
Lenders.

 

“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.

 

19

 

“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.

 

“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 $2,750,000
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

 

20

 

payment in which case interest may be payable in cash), at all times
prior to maturity, (iii) which 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 $330,000,000.

 

“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 First Lien Term Loan Documents,
the borrowing of Loans, Revolving Loans, First 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.

 

24

 

(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.

 

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

 

25

 

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 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);

 

26

 

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

 

(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 be due and payable on the Maturity Date. 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 Borrowers to
repay the Loans in accordance with the terms of this Agreement or affect the
amount of such Loans.

 

27

 

(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.

 

Prepayments of
the Term Loans on or prior to the second anniversary of the Effective Date will
be subject to the following prepayment premium (expressed as a percentage of
the prepaid principal amount of the Term Loans):

 

	
  Period

  	
   

  	
  Percentage

  	
   

  
	
  On or prior to the first anniversary of the
  Effective Date:

  	
   

  	
  2

  	
  %

  
	
  After the first anniversary of the
  Effective Date but on or prior to the second anniversary of the Effective
  Date:

  	
   

  	
  1

  	
  %

  
	
  Thereafter:

  	
   

  	
  No premium

  	
   

  

 

(b)           (i)  At all times on or after the First Lien
Termination Date, 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 $8,250,000 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)           At
all times on or after the First Lien Termination Date, 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

 

28

 

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 an amount of up to $55,000,000 over the term of this Agreement so
long as they use those proceeds to repay outstanding Revolving Loans.

 

(iii)          At
all times on or after the First Lien Termination Date, 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.

 

(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. 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.

 

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.

 

29

 

(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.

 

(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:

 

30

 

(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.

 

(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.

 

31

 

(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.

 

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.

 

32

 

(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
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

 

33

 

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).

 

(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

 

34

 

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.

 

(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; provided
that after the First Lien Termination Date, such funds shall be applied as
follows: 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 and sixth, 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.

 

(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

 

35

 

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 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.

 

36

 

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 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

 

37

 

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 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.

 

38

 

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 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.

 

39

 

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 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

 

40

 

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.

 

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.

 

41

 

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 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

 

42

 

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 First 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 and the First Lien Term 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 and the First
Lien Term Loan Collateral, securing the Obligations, enforceable against the
applicable Loan Party and all third parties, and having priority over (i) 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 and (ii) all other Liens on the
First Lien Term Loan Collateral except (a) Liens in favor of the First Lien
Term Loan 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 First Lien Term 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) 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

 

43

 

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 First 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).

 

(d)           [INTENTIONALLY
OMITTED];

 

44

 

(e)           The
Administrative Agent shall have received duly executed copies of the Revolving
Loan Documents and the First 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 $700,000,000 of First 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 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

 

45

 

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.

 

(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

 

46

 

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, 2007, 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 First 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 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)           The
Borrowers will cause any First Lien Term Loan Collateral or other assets that
are subject to a first priority, perfected Lien in favor of the First Lien Term
Loan Lenders (or the administrative agent on behalf of such First Lien Term
Loan Lenders) under the First Lien Term 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.

 

(d)           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).

 

(e)           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.

 

(f)            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):

 

53

 

(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

 

(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 First 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:

 

54

 

(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, 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 First Lien
Term Loans in an aggregate principal amount not to exceed the Maximum First
Lien 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 Second Lien 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;

 

55

 

(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 $93,500,000 at any time
outstanding;

 

(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 $93,500,000 at
any time outstanding;

 

(i)            Indebtedness
of any Loan Party under any Swap Agreement required in connection with the
First 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

 

56

 

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 and
fixtures thereon in an aggregate principal amount not exceeding $22,000,000 at
any time outstanding;

 

(r)            Indebtedness
in an aggregate principal amount not exceeding $44,000,000 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
$66,000,000 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

 

57

 

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 First Lien Obligations, subject to the Intercreditor Agreement;

 

(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 $8,250,000 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

 

58

 

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), (a)(vii) or (a)(viii)
and in excess of $8,250,000 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 $1,100,000

 

59

 

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 not
exceed $110,000,000, provided further that
such $110,000,000 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 $82,500,000 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 $82,500,000 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 $11,000,000, 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);

 

60

 

(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;

 

(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 $22,000,000 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

 

61

 

(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 $55,000,000 at any time outstanding, provided further that such $55,000,000 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 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
$11,000,000, 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 $55,000,000) 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 $550,000 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

 

62

 

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 $5,500,000,
(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 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

 

63

 

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 First 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 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 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 Sponsor
Subordinated Debt or Subordinated Indebtedness prior to its scheduled maturity,
other than with respect to interest, on the stated, scheduled date for payment
of interest set forth in the applicable document governing such Subordinated
Indebtedness.

 

Except as
permitted by Section 6.01(b), (c) or (d), no Loan Party
shall make any amendment or modification to any indenture, note, or other
agreement evidencing or governing the 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 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 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

  	
   

  	
  $

  	
  107,800,000

  	
   

  
	
  Fiscal Year ending December 31, 2008

  	
   

  	
  $

  	
  123,200,000

  	
   

  
	
  Fiscal Year ending December 31, 2009

  	
   

  	
  $

  	
  116,600,000

  	
   

  

 

64

 

	
  Period

  	
   

  	
  Annual Permitted 

  Amount

  	
   

  
	
  Fiscal Year ending December 31, 2010

  	
   

  	
  $

  	
  95,700,000

  	
   

  
	
  Fiscal Year ending December 31, 2011

  	
   

  	
  $

  	
  53,900,000

  	
   

  
	
  Fiscal Year ending December 31, 2012

  	
   

  	
  $

  	
  73,700,000

  	
   

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

  	
   

  	
  $

  	
  86,900,000

  	
   

  

 

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 $11,000,000 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

  	
  7.20 to 1

  
	
  Fiscal Quarter ending June 30, 2007

  	
  7.10 to 1

  
	
  Fiscal Quarter ending September 30, 2007

  	
  6.95 to 1

  
	
  Fiscal Quarters ending December 31, 2007

  	
  6.70 to 1

  
	
  Fiscal Quarter ending March 31, 2008

  	
  6.58 to 1

  
	
  Fiscal Quarter ending June 30, 2008

  	
  6.45 to 1

  
	
  Fiscal Quarter ending September 30, 2008

  	
  6.33 to 1

  
	
  Fiscal Quarters ending December 31, 2008

  	
  6.20 to 1

  
	
  Fiscal Quarter ending March 31, 2009

  	
  6.06 to 1

  
	
  Fiscal Quarter ending June 30, 2009

  	
  5.83 to 1

  
	
  Fiscal Quarter ending September 30, 2009

  	
  5.59 to 1

  
	
  Fiscal Quarters ending December 31, 2009

  	
  5.35 to 1

  
	
  Fiscal Quarter ending March 31, 2010

  	
  5.04 to 1

  
	
  Fiscal Quarter ending June 30, 2010

  	
  4.73 to 1

  
	
  Fiscal Quarter ending September 30, 2010

  	
  4.41 to 1

  
	
  Fiscal Quarters ending December 31, 2010

  	
  4.10 to 1

  
	
  Fiscal Quarter ending March 31, 2011

  	
  3.85 to 1

  
	
  Fiscal Quarter ending June 30, 2011

  	
  3.60 to 1

  
	
  Fiscal Quarter ending September 30, 2011

  	
  3.35 to 1

  
	
  Fiscal Quarters ending December 31, 2011

  	
  3.10 to 1

  
	
  Fiscal Quarters ending December 31, 2012

  	
  3.35 to 1

  
	
  Fiscal Quarters ending December 31, 2013

  	
  4.70 to 1

  

 

65

 

	
   Period

   	
   Leverage Ratio

   
	
  Fiscal Quarters ending December 31, 2014

  	
  5.25 to 1

  

 

(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

  	
  1.40 to 1

  
	
  Fiscal Quarter ending June 30, 2007

  	
  1.40 to 1

  
	
  Fiscal Quarter ending September 30, 2007

  	
  1.40 to 1

  
	
  Fiscal Quarters ending December 31, 2007

  	
  1.50 to 1

  
	
  Fiscal Quarter ending March 31, 2008

  	
  1.51 to 1

  
	
  Fiscal Quarter ending June 30, 2008

  	
  1.53 to 1

  
	
  Fiscal Quarter ending September 30, 2008

  	
  1.54 to 1

  
	
  Fiscal Quarters ending December 31, 2008

  	
  1.55 to 1

  
	
  Fiscal Quarter ending March 31, 2009

  	
  1.58 to 1

  
	
  Fiscal Quarter ending June 30, 2009

  	
  1.60 to 1

  
	
  Fiscal Quarter ending September 30, 2009

  	
  1.63 to 1

  
	
  Fiscal Quarters ending December 31, 2009

  	
  1.65 to 1

  
	
  Fiscal Quarter ending March 31, 2010

  	
  1.83 to 1

  
	
  Fiscal Quarter ending June 30, 2010

  	
  2.00 to 1

  
	
  Fiscal Quarter ending September 30, 2010

  	
  2.18 to 1

  
	
  Fiscal Quarters ending December 31, 2010

  	
  2.35 to 1

  
	
  Fiscal Quarter ending March 31, 2011

  	
  2.54 to 1

  
	
  Fiscal Quarter ending June 30, 2011

  	
  2.73 to 1

  
	
  Fiscal Quarter ending September 30, 2011

  	
  2.91 to 1

  
	
  Fiscal Quarters ending December 31, 2011

  	
  3.10 to 1

  
	
  Fiscal Quarters ending December 31, 2012

  	
  2.75 to 1

  
	
  Fiscal Quarters ending December 31, 2013

  	
  2.30 to 1

  
	
  Fiscal Quarters ending December 31, 2014

  	
  2.00 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.

 

66

 

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 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

 

67

 

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;

 

(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 (1) 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 and (2) no “Event of
Default” (as defined in the First Lien Term Loan Credit Agreement) (other than
the non-payment of the “Obligations” (as defined in the First Lien Term Loan
Credit Agreement) when due after giving effect to any grace period set forth
therein) shall constitute an Event of Default under this clause unless the
First Lien Term Loan Lenders cause such Indebtedness to become immediately due
and payable as a result thereof;

 

(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;

 

68

 

(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 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 $22,000,000 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 $550,000 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

 

69

 

(o)                                 any
Subsidiary Guaranty executed and delivered by a Subsidiary with a fair market
value in excess of $550,000 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 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 (and the Borrowers will be obligated
to pay any premiums that would otherwise be owing if a prepayment of the Loans
were made at such time and such premium will be automatically due and owing at
such time), 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.

 

70

 

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 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.

 

71

 

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 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

 

72

 

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 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 Counsel

Fax:  (919) 316-6669

 

73

 

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

 

(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

 

74

 

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 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

 

75

 

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 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 $11,000,000 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.

 

76

 

(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
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

 

77

 

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.

 

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

 

78

 

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 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

 

79

 

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 $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

 

80

 

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 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

 

81

 

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.

 

(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

 

82

 

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 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

 

83

 

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.

 

(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

 

84

 

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 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

 

85

 

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 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
  Hanson

  	
   

  
	
   

  	
  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.

  	
   

  	
  $

  	
  198,000,000

  	
   

  
	
  Goldman
  Sachs Credit Partners L.P.

  	
   

  	
  $

  	
  132,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  330,000,000Exhibit 10.12

 

[EXECUTION
COPY]

 

 

 

REVOLVING
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,

 

WACHOVIA BANK,
NATIONAL ASSOCIATION

as Administrative Agent,

 

MORGAN STANLEY
SENIOR FUNDING, INC.

as Syndication Agent,

 

GOLDMAN SACHS
CREDIT PARTNERS L.P.

as Co-Documentation Agent,

 

GE CAPITAL
CORPORATION,

as
Co-Documentation Agent,

 

and

 

WELLS FARGO
FOOTHILL, INC.

as Collateral Agent and Co-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

  	
  33

  
	
  SECTION 1.03

  	
  Terms Generally

  	
  33

  
	
  SECTION 1.04

  	
  Accounting Terms; GAAP

  	
  33

  
	
  ARTICLE II

  	
  The Credits

  	
  34

  
	
  SECTION 2.01

  	
  The Facility

  	
  34

  
	
  SECTION 2.02

  	
  Revolving Loans

  	
  34

  
	
  SECTION 2.03

  	
  Loans and Borrowings

  	
  35

  
	
  SECTION 2.04

  	
  Requests for Borrowings

  	
  35

  
	
  SECTION 2.05

  	
  Protective Advances

  	
  36

  
	
  SECTION 2.06

  	
  Swingline Loans and
  Overadvances

  	
  36

  
	
  SECTION 2.07

  	
  Letters of Credit

  	
  38

  
	
  SECTION 2.08

  	
  Funding of Borrowings

  	
  43

  
	
  SECTION 2.09

  	
  Interest Elections

  	
  44

  
	
  SECTION 2.10

  	
  Termination and
  Reduction of Revolving Commitments

  	
  45

  
	
  SECTION 2.11

  	
  Repayment and
  Amortization of Loans; Evidence of Debt

  	
  46

  
	
  SECTION 2.12

  	
  Prepayment of Loans

  	
  47

  
	
  SECTION 2.13

  	
  Fees

  	
  48

  
	
  SECTION 2.14

  	
  Interest

  	
  49

  
	
  SECTION 2.15

  	
  Alternate Rate of
  Interest

  	
  50

  
	
  SECTION 2.16

  	
  Increased Costs

  	
  50

  
	
  SECTION 2.17

  	
  Break Funding Payments

  	
  52

  
	
  SECTION 2.18

  	
  Taxes

  	
  52

  
	
  SECTION 2.19

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

  	
  54

  
	
  SECTION 2.20

  	
  Mitigation Obligations;
  Replacement of Lenders

  	
  56

  
	
  SECTION 2.21

  	
  Indemnity for Returned
  Payments

  	
  57

  
	
  SECTION 2.22

  	
  Joint and Several
  Liability of the Borrowers

  	
  58

  
	
  ARTICLE III

  	
  Representations and
  Warranties

  	
  59

  
	
  SECTION 3.01

  	
  Organization; Powers

  	
  59

  
					

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 3.02

  	
  Authorization;
  Enforceability

  	
  59

  
	
  SECTION 3.03

  	
  Governmental Approvals;
  No Conflicts

  	
  59

  
	
  SECTION 3.04

  	
  Financial Condition; No
  Material Adverse Change

  	
  59

  
	
  SECTION 3.05

  	
  Properties

  	
  60

  
	
  SECTION 3.06

  	
  Litigation and Environmental
  Matters

  	
  61

  
	
  SECTION 3.07

  	
  Compliance with Laws;
  No Default

  	
  61

  
	
  SECTION 3.08

  	
  Investment and Holding
  Company Status

  	
  61

  
	
  SECTION 3.09

  	
  Taxes

  	
  61

  
	
  SECTION 3.10

  	
  ERISA

  	
  62

  
	
  SECTION 3.11

  	
  Disclosure

  	
  62

  
	
  SECTION 3.12

  	
  Material Agreements

  	
  62

  
	
  SECTION 3.13

  	
  Solvency

  	
  62

  
	
  SECTION 3.14

  	
  Reportable Transaction

  	
  63

  
	
  SECTION 3.15

  	
  Capitalization and
  Subsidiaries

  	
  63

  
	
  SECTION 3.16

  	
  Common Enterprise

  	
  63

  
	
  SECTION 3.17

  	
  Security Interest in
  Collateral

  	
  63

  
	
  SECTION 3.18

  	
  Labor Disputes

  	
  64

  
	
  SECTION 3.19

  	
  Broker’s and
  Transaction Fees

  	
  64

  
	
  SECTION 3.20

  	
  Compliance with FDA
  Laws and Regulations

  	
  64

  
	
  SECTION 3.21

  	
  Deposit Account and
  Cash Management Accounts

  	
  64

  
	
  ARTICLE IV

  	
  Conditions

  	
  65

  
	
  SECTION 4.01

  	
  Effective Date

  	
  65

  
	
  SECTION 4.02

  	
  Each Credit Event

  	
  67

  
	
  ARTICLE V

  	
  Affirmative Covenants

  	
  68

  
	
  SECTION 5.01

  	
  Financial Statements;
  Borrowing Base and Other Information

  	
  68

  
	
  SECTION 5.02

  	
  Notices of Material
  Events

  	
  72

  
	
  SECTION 5.03

  	
  Existence; Conduct of
  Business

  	
  73

  
	
  SECTION 5.04

  	
  Payment of Obligations

  	
  73

  
	
  SECTION 5.05

  	
  Maintenance of
  Properties and Intellectual Property Rights

  	
  73

  
	
  SECTION 5.06

  	
  Books and Records;
  Inspection Rights

  	
  73

  
					

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 5.07

  	
  Compliance with Laws

  	
  74

  
	
  SECTION 5.08

  	
  Use of Proceeds and
  Letters of Credit

  	
  74

  
	
  SECTION 5.09

  	
  Insurance

  	
  74

  
	
  SECTION 5.10

  	
  Appraisals

  	
  75

  
	
  SECTION 5.11

  	
  Additional Collateral;
  Further Assurances

  	
  75

  
	
  SECTION 5.12

  	
  Depository Bank

  	
  77

  
	
  SECTION 5.13

  	
  Compliance with FDA
  Laws and Regulations

  	
  77

  
	
  SECTION 5.14

  	
  Subsidiary Guarantors

  	
  77

  
	
  ARTICLE VI

  	
  Negative Covenants

  	
  77

  
	
  SECTION 6.01

  	
  Indebtedness

  	
  77

  
	
  SECTION 6.02

  	
  Liens

  	
  80

  
	
  SECTION 6.03

  	
  Fundamental Changes

  	
  81

  
	
  SECTION 6.04

  	
  Investments, Loans,
  Advances and Acquisitions

  	
  82

  
	
  SECTION 6.05

  	
  Swap Agreements

  	
  86

  
	
  SECTION 6.06

  	
  Restricted Payments

  	
  86

  
	
  SECTION 6.07

  	
  Transactions with Affiliates

  	
  86

  
	
  SECTION 6.08

  	
  Restrictive Agreements

  	
  87

  
	
  SECTION 6.09

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

  	
  88

  
	
  SECTION 6.10

  	
  Capital Expenditures

  	
  88

  
	
  SECTION 6.11

  	
  Financial Covenants

  	
  89

  
	
  SECTION 6.12

  	
  Amendment of Certain
  Documents

  	
  89

  
	
  SECTION 6.13

  	
  Permitted Dispositions

  	
  89

  
	
  SECTION 6.14

  	
  Sale and Leaseback

  	
  89

  
	
  SECTION 6.15

  	
  Cash Management

  	
  89

  
	
  SECTION 6.16

  	
  Accounting Policies and
  Reporting Practices

  	
  90

  
	
  ARTICLE VII

  	
  Events of Default

  	
  90

  
	
  ARTICLE VIII

  	
  The Administrative
  Agent and the Collateral Agent

  	
  93

  
	
  ARTICLE IX

  	
  Miscellaneous

  	
  97

  
	
  SECTION 9.01

  	
  Notices

  	
  97

  
	
  SECTION 9.02

  	
  Waivers; Amendments

  	
  98

  
					

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 9.03

  	
  Expenses; Indemnity;
  Damage Waiver

  	
  101

  
	
  SECTION 9.04

  	
  Successors and Assigns

  	
  103

  
	
  SECTION 9.05

  	
  Survival

  	
  106

  
	
  SECTION 9.06

  	
  Counterparts;
  Integration; Effectiveness

  	
  107

  
	
  SECTION 9.07

  	
  Severability

  	
  107

  
	
  SECTION 9.08

  	
  Right of Setoff

  	
  107

  
	
  SECTION 9.09

  	
  Governing Law;
  Jurisdiction; Consent to Service of Process

  	
  107

  
	
  SECTION 9.10

  	
  Waiver of Jury Trial

  	
  108

  
	
  SECTION 9.11

  	
  Headings

  	
  109

  
	
  SECTION 9.12

  	
  Confidentiality

  	
  109

  
	
  SECTION 9.13

  	
  Several Obligations;
  Nonreliance; Violation of Law

  	
  109

  
	
  SECTION 9.14

  	
  USA PATRIOT Act

  	
  109

  
	
  SECTION 9.15

  	
  Disclosure

  	
  110

  
	
  SECTION 9.16

  	
  Execution of Loan
  Documents

  	
  110

  
	
  SECTION 9.17

  	
  Interest Rate
  Limitation

  	
  110

  
	
  SECTION 9.18

  	
  Administrative Borrower

  	
  110

  

 

	
  SCHEDULES:

  
	
   

  
	
  Revolving Commitment Schedule

  
	
  Schedule 1.00 – Preplanned Investments

  
	
  Schedule 3.05 – Properties

  
	
  Schedule 3.15 – Capitalization and Subsidiaries

  
	
  Schedule 3.22(a) – Deposit Accounts

  
	
  Schedule 3.22(b) – Securities Accounts

  
	
  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 Borrowing Base Certificate

  
	
  Exhibit C – Form of Compliance Certificate

  
	
  Exhibit D – Closing Checklist

  
	
  Exhibit E – Form of Subsidiary Guaranty

  

 

iv

 

REVOLVING
CREDIT AGREEMENT

 

REVOLVING 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, WELLS FARGO FOOTHILL, INC., as Collateral Agent, and
WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent, Issuing Bank and
Swingline Lender.

 

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.

 

“Account” means any “account” as defined in Article 9 of
the UCC, including any Health-Care Insurance Receivables (as such term is
defined in Article 9 of the UCC) contract.

 

“Account Debtor” means any Person
obligated on an Account.

 

“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 and Term 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 Wachovia Bank, National
Association, 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
Revolving 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 

 

2

 

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 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, (i) with
respect to Revolving Loans, LC Exposure, Swingline Loans or Overadvances, a
portion equal to a fraction the numerator of which is such Lender’s Revolving
Commitment and the denominator of which is the aggregate Revolving Commitment
of all Revolving Lenders (if the Revolving Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the
Revolving Commitments most recently in effect, giving effect to any
assignments), (ii) with respect to Protective Advances or with respect to
the Aggregate Credit Exposure prior to the Maturity Date, a portion equal to a
fraction the numerator of which is such Lender’s Revolving Commitment and the
denominator of which is the aggregate Revolving Commitment of all Lenders, and (iii) with
respect to Protective Advances or with respect to the Aggregate Credit Exposure
after the Maturity Date, a portion equal to a fraction the numerator of which
is such Lender’s Revolving Credit Exposure and the denominator of which is the
Aggregate Credit Exposure.

 

“Applicable Rate” means (i) until delivery of the Borrowing
Base Certificate pursuant to Section 5.01(g) following the
second full calendar month after the Effective Date, 1.75% in the case of
Revolving Loans comprising Eurodollar Loans and 0.50% in the case of Revolving
Loans comprising ABR Loans and (ii) thereafter, for any day, with respect
to any ABR Loan or Eurodollar Loan constituting a Revolving Loan, or with
respect to the commitment fees payable hereunder, as the case may be, the
applicable rate per annum set forth below under the caption “ABR Spread”, “Eurodollar
Spread” or “Commitment Fee Rate”, as the case may be, based upon the
Monthly Available Credit:

 

	
  Monthly Available Credit

  	
   

  	
  Eurodollar

  Spread

  	
   

  	
  ABR Spread

  	
   

  	
  Commitment

  Fee Rate

  	
   

  
	
  Greater than
  $200,000,000

  	
   

  	
  1.50

  	
  %

  	
  0.25

  	
  %

  	
  0.25

  	
  %

  
	
  Equal to or
  less $200,000,000 and greater than $50,000,000

  	
   

  	
  1.75

  	
  %

  	
  0.50

  	
  %

  	
  0.25

  	
  %

  
	
  Equal to or
  less than $50,000,000

  	
   

  	
  2.00

  	
  %

  	
  0.75

  	
  %

  	
  0.25

  	
  %

  

 

3

 

“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.

 

“Availability” means, at any time, an amount equal to the lesser
of (i) the Revolving Commitment and (ii) the Borrowing Base, in each
case, minus the
Revolving Credit Exposure of all Revolving Lenders.

 

“Availability Period” means the period from and including the
Effective Date to but excluding the earlier of the Maturity Date and the date
of termination of the Revolving Commitments.

 

“Available Revolving Commitment” means, at any time, the
Revolving Commitment then in effect minus the Revolving Credit Exposure of all Revolving
Lenders at such time.

 

“Banking Services” means each and any of the following bank
services, if any, provided to any Borrower by the Administrative Agent, the
Collateral Agent or any of their respective Affiliates: (i) commercial
credit cards, (ii) stored value cards, and (iii) treasury management
services (including, without limitation, controlled disbursement, automated
clearinghouse transactions, return items, overdrafts and interstate depository
network services).

 

“Banking Services Obligations” of the Borrowers means any and
all obligations of the Borrowers, whether absolute or contingent and howsoever
and whensoever created, arising, evidenced or acquired (including all renewals,
extensions and modifications thereof and substitutions therefor) in connection
with Banking Services.

 

“Banking Services Reserves” means all Reserves which the
Collateral Agent from time to time establishes in its Permitted Discretion for
Banking Services then provided or outstanding.

 

“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.

 

4

 

“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 (i) Revolving Loans of the same Type,
made, converted or continued on the same date and, in the case of Eurodollar
Loans, as to which a single Interest Period is in effect, (ii) a Swingline
Loan, (iii) a Protective Advance and (iv) an Overadvance.

 

“Borrowing Base” means, at any time, the sum of (i) 85% of
the Loan Parties’ Eligible Accounts at such time, plus (ii) the lesser of (a) 65%
of the Loan Parties’ Eligible Inventory, valued on a first-in-first-out basis
in accordance with GAAP, at such time, (b) 85% of the Net Orderly
Liquidation Value of the Loan Parties’ Eligible Inventory, determined by
category as set forth in the Effective Date Appraisal and each updated
appraisal received by the Collateral Agent and (c) $300,000,000. The
maximum amount of Loans that may be made or advanced based upon
work-in-process Inventory shall be $100,000,000 (it being understood that “filled-not-packed”
Inventory and “packed-not-released” Inventory shall be considered finished
goods Inventory and not work-in-process Inventory). The Collateral Agent may,
in good faith and in a commercially reasonable manner consistent with customary
practices, modify eligibility standards, establish or adjust reserves or reduce
one or more of the other elements used in computing the Borrowing Base. Any
such changes to eligibility standards will be effective on the date the
Administrative Borrower is required to deliver the next Borrowing Base
Certificate and any such changes related to the establishment or reduction of
reserves or to one or more of the other elements used in computing the
Borrowing Base shall be effective five days after delivery of notice thereof to
the Borrowers and the Lenders.

 

“Borrowing Base Certificate” means a certificate of the
Administrative Borrower on behalf of the Loan Parties, signed by a Financial
Officer of the Administrative Borrower, in the form of Exhibit B
or another form which is acceptable to the Collateral Agent in its sole
discretion.

 

“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 

 

5

 

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 the Issuing Bank (or, for purposes of Section 2.16(b), by
any lending office of such Lender or by such Lender’s or the Issuing Bank’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.

 

“Class”, when used in reference to any Loan or Borrowing, refers
to whether such Loan, or the Loans comprising such Borrowing, are Revolving
Loans, Swingline Loans, Protective Advances or Overadvances.

 

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

 

“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.

 

6

 

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

 

“Collateral Agent” means Wells Fargo Foothill, Inc., in its
capacity as collateral agent for the Lenders hereunder.

 

“Collateral Availability” means, at any time, an amount equal to
the Borrowing Base minus
the Revolving Credit Exposure of all Revolving Lenders.

 

“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” has the meaning set forth in the Security
Agreement.

 

“Collections” means all cash, checks, notes, instruments and
other items of payment (including insurance proceeds, proceeds of cash sales,
rental proceeds and tax refunds) of the Parent and its Subsidiaries.

 

“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.

 

“Control Agreement” means an agreement in form and
substance reasonably satisfactory to the Administrative Agent which provides
for the Administrative Agent to have “control” (as defined in Section 8-106
of the UCC, as such term relates to investment property (other than
certificated securities or commodity contracts), or as used in Section 9-106
of the UCC, as such term relates to commodity contracts, or as used in Section 9-104(a) of
the UCC, as such term relates to deposit accounts).

 

“Controlled Disbursement Account” means, collectively, any
accounts of any Borrower maintained with the Administrative Agent or any other
Person as a zero balance, cash management account pursuant to and under any
agreement between any Borrower and the Administrative Agent or such Person, as
modified and amended from time to time, and through which all disbursements of
any Borrower and any designated Subsidiary are made and settled on a daily
basis with no uninvested balance remaining overnight.

 

“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 2.08(b).

 

“Deposit Account” means a “deposit account” as that term is
defined in Section 9-102(a) of the UCC.

 

7

 

“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 and 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 (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).

 

“Effective Date Appraisal” means the appraisal dated October 31,
2006 performed by AccuVal Associates, Incorporated.

 

“Eligible Accounts” means, at any
time, the aggregate Accounts of the Loan Parties, excluding any Account (other
than Accounts with respect to which no more than 180 days have elapsed since
the date of the original invoice therefor, in each case that are backed by a
letter of credit acceptable to the Collateral Agent pursuant to arrangements
otherwise acceptable to the Collateral Agent, or by foreign credit insurance
arrangements acceptable to the Collateral Agent):

 

(a)                                  which
is not subject to a first priority perfected security interest in favor of the
Administrative Agent;

 

(b)                                 which
is subject to any Lien other than (i) a Lien in favor of the
Administrative Agent, (ii) a Permitted Encumbrance which does not have
priority over the Lien in favor of the Administrative Agent, and (iii) Liens
permitted by Sections 6.02(f) and (g);

 

(c)                                  with
respect to which (i) the scheduled due date is more than 90 days after the
original invoice date (other than Accounts generated under the Talecris Direct
program), (ii) more than 120 days have elapsed since the date of the
original invoice therefor, or (iii) which is more than 60 days past the
due date for payment (other than Accounts generated under the Talecris Direct
program);

 

8

 

(d)                                 which
is owing by an Account Debtor (other than Bayer or an Affiliate of Bayer (or
any successor thereto reasonably satisfactory to the Collateral Agent)) for
which more than 50% of the Accounts owing from such Account Debtor and its
Affiliates are ineligible hereunder, other than by reason of clauses (e), (g) or
(m) of this definition;

 

(e)                                  which
is owing by an Account Debtor to the extent the aggregate amount of Accounts
owing from such Account Debtor and its Affiliates to the Loan Parties exceeds
25% of the aggregate Eligible Accounts, provided, that so long as Bayer’s
U.S. long term senior unsecured debt has an investment grade rating from
S&P or Moody’s, such maximum shall be 30% in the aggregate for Accounts as
to which Bayer or an Affiliate of Bayer is the Account Debtor (or any successor
thereto reasonably satisfactory to the Collateral Agent), and provided further, that, so long as Bayer’s
U.S. long term senior unsecured debt has a rating of at least “A-” from S&P
or “A3” from Moody’s, this clause (e) shall not apply to Accounts for
which Bayer or an Affiliate of Bayer is the Account Debtor (or any successor
thereto reasonably satisfactory to the Collateral Agent));

 

(f)                                    with
respect to which any covenant, representation, or warranty contained in this
Agreement or in the Security Agreement or the applicable Subsidiary Security
Agreement has been breached or is not true;

 

(g)                                 which
(i) does not arise from the sale of goods or performance of services in
the ordinary course of business, (ii) is not evidenced by an invoice or
other documentation reasonably satisfactory to the Collateral Agent which has
been sent to the Account Debtor, (iii) represents a progress billing, (iv) is
contingent upon any Loan Party’s completion of any further performance, or (v) represents
a sale on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval,
consignment, cash-on-delivery or any other repurchase or return basis (other
than Accounts subject to such a repurchase or return arrangement that have been
specifically disclosed to the Collateral Agent, which Accounts and arrangements
are acceptable to the Collateral Agent in its Permitted Discretion);

 

(h)                                 for
which the goods giving rise to such Account have not been shipped to the
Account Debtor or for which the services giving rise to such Account have not
been performed;

 

(i)                                     with
respect to which any check or other instrument of payment has been returned
uncollected due to insufficient funds;

 

(j)                                     which
is owed by an Account Debtor which has at such time (i) applied for,
suffered, or consented to the appointment of any receiver, custodian, trustee,
or liquidator of its assets, (ii) had possession of all or a material part of
its property taken by any receiver, custodian, trustee or liquidator, (iii) filed,
or had filed against it, any request or petition for liquidation,
reorganization, arrangement, adjustment of debts, adjudication as bankrupt,
winding-up, or voluntary or involuntary case under any state or federal
bankruptcy laws or equivalent laws of 

 

9

 

any other
jurisdiction, (iv) admitted in writing its inability to, or is generally
unable to, pay its debts as they become due, (v) become insolvent, or (vi) ceased
operation of its business;

 

(k)                                  which
is owed by any Account Debtor which has sold all or substantially all of its
assets;

 

(l)                                     which
is owed by an Account Debtor which (i) does not maintain its chief
executive office in the U.S. or Canada (other than the Province of Quebec) or (ii) is
not organized under applicable law of the U.S., any state of the U.S., Canada,
or any province of Canada (other than the Province of Quebec) unless, in either
case, such Account is backed by an advised letter of credit acceptable to the
Collateral Agent which is in possession of, or subject to a first priority
perfected security interest in favor of, the Administrative Agent, or by
foreign credit insurance arrangements acceptable to the Collateral Agent;

 

(m)                               which
is owed in any currency other than U.S. dollars, Canadian dollars, Euros (with
respect only to Accounts for which Bayer or an Affiliate of Bayer is the Account
Debtor (or any successor thereto reasonably satisfactory to the Collateral
Agent)), or Japanese Yen (with respect only to Accounts for which Bayer or an
Affiliate of Bayer is the Account Debtor), provided that, with respect
to Accounts owed in any currency other than U.S. dollars, the value of such
Accounts for purposes of calculating the Borrowing Base shall be expressed in
U.S. dollars on the date of the applicable Borrowing Base Certificate, each
such value to be calculated on a basis mutually acceptable to the Collateral
Agent and the Administrative Borrower;

 

(n)                                 which
is owed by (i) the government (or any department, agency, public
corporation, or instrumentality thereof) of any country other than the U.S. or
Canada unless such Account is backed by a letter of credit acceptable to the
Collateral Agent which is in the possession of, or subject to a first priority
perfected security interest in favor of, the Administrative Agent, (ii) the
government of the U.S., or any department, agency, public corporation, or
instrumentality thereof, unless the Federal Assignment of Claims Act of 1940,
as amended (31 U.S.C. § 3727 et seq.
and 41 U.S.C. § 15 et seq.), and any
other steps necessary to perfect the Lien of the Administrative Agent in such
Account have been complied with to the Collateral Agent’s satisfaction, or (iii) the
government of Canada or of any province thereof, or any department, agency,
public corporation, or instrumentality of any of them, unless the Canadian
Financial Administration Act or any applicable provincial legislation, as
amended, and any other steps necessary to perfect the Lien of the
Administrative Agent in such Account have been complied with to the Collateral
Agent’s satisfaction;

 

(o)                                 which
is owed by any Affiliate, employee, officer or director of any Loan Party
(other than Account Debtors who are Affiliates of the Loan Parties solely by
virtue of being investment portfolio companies of Cerberus Capital Management,
L.P., 

 

10

 

Ampersand
Ventures, or any Affiliate of either of them and being under common Control
with the Loan Parties by reason of such relationship, to the extent Accounts of
such Account Debtor have been 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, and otherwise
on terms and conditions acceptable to the Collateral Agent in its sole
discretion);

 

(p)                                 which,
for any Account Debtor (other than an Account Debtor whose senior unsecured
debt has an investment grade rating from either S&P or Moody’s), exceeds a
credit limit determined by the Collateral Agent, to the extent of such excess,
which limits may from time to time be instituted or adjusted by the
Collateral Agent in its Permitted Discretion based upon the credit status of
such Account Debtor;

 

(q)                                 which
is owed (but only to the extent of such indebtedness) by an Account Debtor or
any Affiliate of such Account Debtor to which any Loan Party is indebted
(except Accounts (i) for which Bayer or any subsidiary of Bayer is the
Account Debtor, which Accounts are subject to effective no-offset language
substantially similar to that contained in the Joint Contribution Agreement or
otherwise acceptable to the Collateral Agent in its Permitted Discretion, or (ii) for
which any other Person is the Account Debtor, which Accounts are subject to
effective no-offset language acceptable to the Collateral Agent in its
Permitted Discretion, such no-offset language in each case to be applicable
with respect to amounts owed to such Account Debtor by any Loan Party, and in
each case so long as the applicable Account Debtor has not denied the
enforceability of such no-offset language or actually set off (or attempted to
set off) any such Account against any amount owed by any Loan Party);

 

(r)                                    which
is subject to any counterclaim, deduction, defense, setoff or dispute (but only
to the extent thereof);

 

(s)                                  which
is evidenced by any promissory note, chattel paper, or instrument;

 

(t)                                    [INTENTIONALLY
OMITTED];

 

(u)                                 with
respect to which any Loan Party has made any agreement with the Account Debtor
for any reduction thereof (but only to the extent of such reduction); or

 

(v)                                 which
the Collateral Agent determines in its Permitted Discretion may not be
paid by reason of the Account Debtor’s inability to pay or which the Collateral
Agent otherwise determines in its Permitted Discretion is unacceptable for any
reason whatsoever.

 

In the event that an Account which was previously an Eligible Account
ceases to be an Eligible Account hereunder (except to the extent that any such
Account ceases to be an Eligible Account solely by virtue of an exercise by the
Collateral Agent of its Permitted Discretion that has not been communicated to
the Administrative Borrower), the Administrative Borrower shall 

 

11

 

notify the Collateral Agent thereof on and at
the time of submission to the Collateral Agent of the next Borrowing Base
Certificate.

 

“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).

 

“Eligible Inventory” means, at any
time, the Inventory of the Loan Parties (including Inventory located in Canada
), excluding any Inventory:

 

(a)                                  which
is not subject to a first priority perfected Lien in favor of the Administrative
Agent;

 

(b)                                 which
is subject to any Lien other than (i) a Lien in favor of the
Administrative Agent, (ii) a Permitted Encumbrance which does not have
priority over the Lien in favor of the Administrative Agent, and (iii) Liens
permitted by Sections 6.02(f) and (g);

 

(c)                                  which
is unmerchantable, defective, unfit for sale, or unacceptable due to type,
category and/or quantity, in each case in the Collateral Agent’s Permitted
Discretion;

 

(d)                                 with
respect to which any covenant, representation, or warranty contained in this
Agreement or the Security Agreement or the applicable Subsidiary Security
Agreement has been breached or is not true;

 

(e)                                  which
does not conform to all then mandatory standards imposed by any
Governmental Authority (including the Fair Labor Standards Act), except where
the Collateral Agent has determined in its Permitted Discretion that any
nonconformity could not reasonably be expected to have a material effect on the
value of such Inventory;

 

(f)                                    which
is not finished goods (it being understood that “filled-not-packed” Inventory
and “packed-not-released” Inventory shall be considered finished goods
Inventory and not work-in-process Inventory) or raw plasma; or which
constitutes work-in-process (other than work-in-process Inventory that is
otherwise Eligible Inventory hereunder to a maximum amount not to exceed
$155,000,000), raw materials, spare or replacement parts, packaging and
shipping material, manufacturing supplies, display items, bill-and-hold goods,
returned or repossessed goods, defective goods, goods held by a Loan Party on
consignment, or goods which are not of a type held for sale in the ordinary
course of business;

 

(g)                                 which
is not located in the U.S. or Canada (subject to Canadian collateral
arrangements satisfactory to the Collateral Agent in its Permitted Discretion,
including, without limitation, execution of Canadian collateral agreements
(including any such agreements required under the laws of the Province of
Quebec), PPSA filings (or equivalent filings in the Province of Quebec),
appointment of a Canadian collateral agent, delivery of appropriate lien
searches 

 

12

 

and
non-sheltering agreements, and delivery of favorable legal opinions of Canadian
counsel to the Loan Parties), or is in transit with a common carrier from
vendors and suppliers except between the Borrowers;

 

(h)                                 at
all times after the 30th day following the Effective Date, which is located in
any location leased by a Loan Party unless the lessor has delivered to the
Administrative Agent a Collateral Access Agreement, or, if the Loan Parties
have been unable to deliver a Collateral Access Agreement after commercially
reasonable efforts to do so, (i) if required by the Collateral Agent in
its Permitted Discretion, a Reserve for up to three (3) months’ rent,
charges, and other amounts due or to become due with respect to such facility
has been established by the Collateral Agent in its Permitted Discretion, or (ii) the
Collateral Agent has otherwise agreed;

 

(i)                                     at
all times after the 30th day following the Effective Date, which is located in
any third party warehouse or is in the possession of a bailee, unless such
warehouseman or bailee has delivered to the Administrative Agent a Collateral
Access Agreement and such UCC, PPSA or comparable filings as the Collateral
Agent may require in its Permitted Discretion, or, if the Loan Parties
have been unable to deliver a Collateral Access Agreement after commercially
reasonable efforts to do so, (i) if required by the Collateral Agent in
its Permitted Discretion, a Reserve for up to three (3) months’ rent,
charges, and other amounts due or to become due with respect to such facility
has been established by the Collateral Agent in its Permitted Discretion, or (ii) the
Collateral Agent has otherwise agreed; and is not evidenced by a Document
unless the Collateral Agent has otherwise agreed;

 

(j)                                     which
is the subject of a consignment arrangement by any Loan Party as consignor
(other than Inventory subject to such arrangements that have been specifically
disclosed to the Collateral Agent, which arrangements (including, without
limitation, the filing of appropriate UCC or PPSA financing statements (or
comparable filings) by such Loan Party against the consignee, as applicable)
are acceptable to the Collateral Agent in its Permitted Discretion);

 

(k)                                  which
with respect to finished goods and raw plasma is perishable and the expiry date
for which is within 365 days of the relevant date of any determination;

 

(l)                                     which
contains or bears any intellectual property rights licensed to any Loan Party
unless it may sell or otherwise dispose of such Inventory without (i) infringing
the rights of such licensor, (ii) violating any contract with such
licensor, or (iii) incurring any liability with respect to payment of
royalties other than royalties incurred pursuant to sale of such Inventory
under the current licensing agreement;

 

(m)                               which
is not reflected in a current perpetual inventory report (but not reconciled to
cost) of the Loan Parties (including reports generated pursuant to the
Information Technology Services Agreement during the period such agreement is
in effect); or

 

13

 

(n)                                 which
the Collateral Agent otherwise determines in its Permitted Discretion is
unacceptable for any reason whatsoever.

 

In the event that Inventory which was previously Eligible Inventory
ceases to be Eligible Inventory hereunder (except to the extent that any such
Inventory ceases to be Eligible Inventory solely by virtue of an exercise by
the Collateral Agent of its Permitted Discretion that has not been communicated
to the Administrative Borrower), the Administrative Borrower shall notify the
Collateral Agent thereof on and at the time of submission to the Collateral
Agent of the next Borrowing Base Certificate.

 

“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 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 

 

14

 

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 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.

 

“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.

 

15

 

“Excluded Taxes” means, with respect to the Administrative
Agent, the Collateral 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, Collateral
Agent, such Lender or other recipient as a result of a present or former
connection between such Administrative Agent, Collateral 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 2.20(b)), (d) any withholding tax to
the extent imposed as a result of a Lender’s failure to comply with Section 2.18(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 2.18(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.

 

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

 

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

 

“First Lien Term Loan Collateral” means any and all property
owned or leased by a Person subject to, or purported to be subject to, the
First 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 First Lien Term Loan Lenders, on behalf of itself and the other secured
parties under the First Lien Term Loans, to secure the First Lien Obligations under
the First Lien Term Loans.

 

16

 

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

 

“First Lien Term Loan Credit Agreement” means the First Lien
Term Loan Credit Agreement, dated as of the date hereof, among the Borrowers,
Morgan Stanley Senior Funding, Inc., as administrative agent and the
lenders party thereto.

 

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

 

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

 

“First Lien Term Loans” means the First Lien Term Loans extended
by the Lenders to the Borrowers pursuant to the First Lien Term Loan Credit
Agreement.

 

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

 

“Fixed Charges” means, with reference to any period, without
duplication, cash Interest Expense, plus scheduled principal payments on Indebtedness made
during such period, plus
expense for taxes paid in cash, plus Capital Lease Obligation payments, all calculated
for the Borrowers and their subsidiaries on a consolidated basis.

 

“Fixed Charge Coverage Ratio” means the ratio, determined as of
the end of each of Fiscal Quarter of the Borrowers for the most recently ended
four Fiscal Quarters, of (i) Adjusted EBITDA minus the unfinanced portion of
Capital Expenditures to (ii) Fixed Charges, all calculated for the
Borrowers and their subsidiaries on a consolidated basis.

 

“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.

 

17

 

“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.

 

“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  

 

18

 

(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 First Lien Term Loan Credit Agreement),
the Administrative Agent (as defined in the Second Lien Term Loan Credit
Agreement) and each Loan Party.

 

“Interest Election Request” means a request by the
Administrative Borrower on behalf of the Borrowers to convert or continue a
Borrowing in accordance with Section 2.09.

 

“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 (other than a Swingline Loan), the last day of each March, June, September and
December and the Maturity Date, (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, and (iii) with
respect to any Swingline Loan, the day that such Loan is required to be repaid
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 

 

19

 

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.

 

“Issuing Bank” means Wachovia, in its capacity as the issuer of
Letters of Credit hereunder, and its successors in such capacity as provided in
Section 2.07(i). The Issuing Bank may, in its discretion, arrange for
one or more Letters of Credit to be issued by Affiliates of the Issuing Bank,
in which case the term “Issuing Bank” shall include any such Affiliate with
respect to Letters of Credit issued by such Affiliate.

 

“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.

 

“Joint Lead Arrangers” means Morgan Stanley and GSCP.

 

“LC Disbursement” means a payment made by the Issuing Bank
pursuant to a Letter of Credit.

 

“LC Exposure” means, at any time, the sum of (i) the
aggregate undrawn amount of all outstanding Letters of Credit at such time plus (ii) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by
or on behalf of the Borrower (including with the proceeds of Loan pursuant to
the terms hereof) at such time. The LC Exposure of any Revolving Lender at any
time shall be its Applicable Percentage of the total LC Exposure at such time.

 

“LC Collateral Account” has the meaning assigned to such term in
Section 2.07(j).

 

“LC Shortfall Amount” means an amount equal to the difference of
(i) the amount of LC Exposure at such time, less (ii) the amount on
deposit in the LC Collateral Account at such time.

 

“Lenders” means the Persons listed on the Commitment Schedule 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. Unless the context otherwise requires, the term “Lenders” includes
the Swingline Lender.

 

“Letter of Credit” means any letter of credit issued pursuant to
this Agreement.

 

“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 

 

20

 

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, any Letter of Credit applications, 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 First Lien Term Loan
Documents and the Second Lien Term 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, including Swingline Loans, Overadvances and
Protective Advances.

 

“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.

 

“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, the Collateral Agent, the Issuing Bank or the Lenders
under the Loan Documents.

 

21

 

“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
and Letters of Credit), 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 fifth anniversary of the Effective
Date or any earlier date on which the Revolving Commitments are reduced to zero
or otherwise terminated pursuant to the terms hereof.

 

“Monthly Available Credit” means, at any time, the average daily
Availability for the immediately preceding calendar month.

 

“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 with respect to Collateral on which the
Revolving Lenders have a first priority Lien, 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, franchise or 

 

22

 

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.

 

“Net Orderly Liquidation Value” means, with respect to Inventory
or equipment of any Person, the orderly liquidation value thereof as determined
in a manner reasonably acceptable to the Collateral Agent by an appraiser
reasonably acceptable to the Collateral Agent, net of all costs of liquidation
thereof. Net Orderly Liquidation Value of the Inventory as of the Effective
Date shall be determined by reference to the Effective Date Appraisal.

 

“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 LC Exposure, 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, the
Collateral Agent, the Issuing Bank or any indemnified party arising under the
Loan Documents. Obligations shall also include (i) all Banking Services
Obligations and (ii) 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.

 

23

 

“Overadvances” has the meaning
assigned to such term in Section 2.06(b).

 

“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 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;

 

24

 

(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;

 

(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.

 

25

 

“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 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).

 

“Protective Advance” has the meaning assigned to such term in Section 2.05.

 

“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.

 

26

 

“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.

 

“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.

 

“Report” means reports prepared by the Collateral 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 Collateral Agent has exercised its rights of
inspection pursuant to this Agreement, which Reports may be distributed to
the Lenders by the Collateral Agent.

 

“Required Lenders” means, at any time, (a) in the event any
Lender holds more than 50.1% of the Revolving Commitments, such Lender plus at
least one other Lender who is not an Affiliate of such Lender (unless there is
only one Lender, in which case, the Required Lenders shall be such Lender) and (b) in
any other circumstance, Lenders having Revolving Commitments representing at
least 50.1% of the sum of the total Revolving Credit Exposures and unused
Revolving Commitments at such time or, if the Revolving Commitments of the
Revolving Lenders have been terminated, Revolving Lenders representing at least
50.1% of the Revolving Credit Exposure of all Revolving Lenders.

 

“Reserves” means any and all reserves which the Collateral Agent
deems necessary, in its Permitted Discretion, to maintain (including, without
limitation, reserves for accrued and unpaid interest on the Obligations,
Banking Services Reserves, reserves for rent at locations leased by any Loan
Party and for consignee’s, warehousemen’s and bailee’s charges, in each case
where a Collateral Access Agreement has not been obtained (such reserves for
any location not to be greater than three (3) months’ rent, charges, and
other amounts due or to become due with respect to such location), reserves for
dilution of Accounts (such reserves not to exceed, on a percentage basis, the
percentage by which average dilution determined over a three-month trailing
period exceeds the Collateral Agent’s established dilution standards), reserves
for Inventory shrinkage, reserves for customs charges and shipping charges
related to any Inventory in transit, reserves for Swap Obligations, reserves
for contingent liabilities of any Loan Party, reserves for uninsured losses of
any Loan Party and reserves for taxes, fees, assessments, and other
governmental charges) with respect to the Collateral or any Loan Party, which
in each case may be instituted by the Collateral Agent upon two Business
Days’ prior notice to the Administrative Borrower and which has a reasonable
relationship to the event, condition or other matter that is the basis for such
Reserve, as determined by the Collateral Agent in its Permitted Discretion.

 

“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.

 

27

 

“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 Commitment” means, with respect to each Revolving
Lender, the commitment of such Lender to make Revolving Loans and to acquire
participations in Letters of Credit, Overadvances, Protective Advances and
Swingline Loans hereunder, as such commitment may be (i) reduced from
time to time pursuant to Section 2.10, and (ii) reduced or
increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04. The initial amount of each Revolving
Lender’s Revolving Commitment is set forth on the Commitment Schedule, or in
the Assignment and Assumption pursuant to which such Lender shall have assumed
its Revolving Commitment, as applicable. The initial aggregate amount of the
Revolving Lenders’ Revolving Commitments is $325,000,000.

 

“Revolving Credit Exposure” means, with respect to any Revolving
Lender at any time, the sum (without duplication) of (i) the outstanding
principal amount of such Revolving Lender’s Revolving Loans and its LC
Exposure, plus (ii) an
amount equal to its Applicable Percentage of the aggregate principal amount of
Swingline Loans outstanding at such time, plus (iii) an amount equal to its Applicable
Percentage of the aggregate principal amount of any Overadvances outstanding at
such time, plus an amount equal to its
Applicable Percentage of the aggregate principal amount of Protective Advances
outstanding at such time.

 

“Revolving Lenders” means, as of any date of determination,
Lenders having a Revolving Commitment or, if the Revolving Commitments have
been terminated, the Lenders having Revolving Credit Exposure.

 

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

 

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

 

“Second Lien Obligations” means the “Obligations” as defined in
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 the
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 under the Second Lien Term Loans.

 

“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 under the Second Lien Term Loans.

 

28

 

“Second Lien Term Loan Credit Agreement” means the Second Lien
Term Loan Credit Agreement, dated as of the date hereof, among the Borrowers,
Morgan Stanley Senior Funding, Inc., as administrative agent and the
lenders party thereto.

 

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

 

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

 

“Secured Parties” means, collectively, (i) the
Administrative Agent and the Collateral Agent, (ii) the Lenders, (iii) the
Issuing Bank, (iv) the Administrative Agent or an Affiliate of the
Administrative Agent with respect to any Banking Services Obligations, (v) the
Collateral Agent or an Affiliate of the Collateral Agent with respect to any
Banking Services Obligations, and (vi) 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.

 

“Settlement” has the meaning assigned
to such term in Section 2.06(d).

 

“Settlement Date” has the meaning assigned to such term in Section 2.06(d).

 

“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.

 

“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.

 

29

 

“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 Borrowers’
minimum Availability as of such date (after giving effect to the funding of all
Revolving Loans and the issuance of all Letters of Credit to be funded or
issued as of such date) is equal to at least $32,500,000, 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 is
unsecured, and (iv) which does not amortize or mature prior to six months
after the Maturity Date.

 

30

 

“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 E hereto, as amended, supplemented,
amended and restated or otherwise modified from time to time.

 

“Supporting Letter of Credit” means a standby letter of credit,
in form and substance satisfactory to the Collateral Agent, issued by an
issuer satisfactory to the Administrative Agent, in a stated amount equal to
103% of the LC Shortfall Amount.

 

“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; 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.

 

31

 

“Swingline Lender” means Wachovia, in its capacity as lender of
Swingline Loans hereunder.

 

“Swingline Loan” has the meaning assigned to such term in Section 2.06(a).

 

“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 Loans” means, as applicable the First Lien Term Loans
and/or the Second Lien Term Loans.

 

“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 First Lien Term Loan Documents, the Second
Lien Term Loan Documents, the borrowing of Loans, First Lien Loans and Second
Lien 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.

 

“Wachovia” means Wachovia Bank, National Association, in its
individual capacity, and its Affiliates, and their successors.

 

“Wells Fargo” means Wells Fargo Foothill, Inc., in its
individual capacity, and its Affiliates, and their successors.

 

32

 

“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.

 

“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 Class (e.g., a “Revolving Loan”)
or by Type (e.g., a “Eurodollar Loan”) or by Class and Type
(e.g., a “Eurodollar Revolving Loan”). Borrowings also may be
classified and referred to by Class (e.g., a “Revolving
Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by
Class and Type (e.g., a “Eurodollar Revolving 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 

 

33

 

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.

 

(b)                                 As
of any date of determination, for purposes of determining the Fixed Charge
Coverage 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 Loans to the Borrowers from time to time during the Availability
Period in an aggregate principal amount that will not result in (i) such
Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving Commitment
or (ii) the sum of the Aggregate Revolving Credit Exposures exceeding the
Revolving Commitment. The Issuing Bank will issue Letters of Credit hereunder
on the terms and conditions set forth below. The Facility shall be composed of
Revolving Loans, Swingline Loans, Protective Advances, Overadvances, and
Letters of Credit as set forth below.

 

SECTION 2.02                                            Revolving
Loans. Subject to the terms and conditions set forth herein, each Revolving
Lender severally agrees to make Revolving Loans to the Borrowers from time to
time during the Availability Period in an aggregate principal amount that will
not result in (i) such Lender’s Revolving Credit Exposure exceeding such
Lender’s Revolving Commitment or (ii) the total Revolving Credit Exposures
exceeding the lesser of (x) the sum of the total Revolving Commitments of the
Revolving Lenders or (y) the Borrowing Base, subject to the Administrative
Agent’s and Collateral Agent’s authority, in each of their sole discretion, to
make Protective Advances and Overadvances pursuant to the terms of Section 2.05
and 2.06. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrowers may borrow, prepay and reborrow
Revolving Loans.

 

34

 

SECTION 2.03                                            Loans
and Borrowings. (a)  Each Revolving Loan shall be made as part of
a Borrowing consisting of Revolving Loans made by the Revolving Lenders ratably
in accordance with their respective Revolving Commitments. Any Protective
Advance and any Overadvance shall be made in accordance with the procedures set
forth in Section 2.05 and 2.06.

 

(b)                                 Subject
to Section 2.15, each Borrowing shall be comprised entirely of ABR
Loans or Eurodollar Loans as the Administrative Borrower may request in
accordance herewith. Each Swingline Loan shall be an ABR Loan. 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.

 

(c)                                  At
the commencement of each Interest Period for any Eurodollar Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $5,000,000. ABR Borrowings may be in any
amount. Borrowings of more than one Type and Class may be outstanding
at the same time; provided that there shall not at any time be more than
a total of ten Eurodollar Borrowings outstanding.

 

(d)                                 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.

 

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 (i) in
the case of a Eurodollar Borrowing, not later than 2:00 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 10:00 a.m., New York time, on
the date of the proposed Borrowing; provided that any such notice of an
ABR Borrowing to finance the reimbursement of an LC Disbursement as
contemplated by Section 2.07(e) may be given 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;

 

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

 

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

 

(iv)                              in
the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of
the term “Interest Period.”

 

If no election as to the Type of Borrowing is specified, then the
requested Borrowing shall be an ABR Borrowing. If no Interest Period is
specified with respect to any requested Eurodollar 

 

35

 

Borrowing, then the Borrowers shall be deemed to have selected an
Interest Period of one month’s duration. 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                                            Protective
Advances. (a)  Subject to the limitations set forth below, the
Administrative Agent and the Collateral Agent are authorized by the Borrowers
and the Lenders, from time to time in each of their sole discretion (but shall
have absolutely no obligation to), to make Loans to the Borrowers, on behalf of
all Lenders, which the Administrative Agent or the Collateral Agent, in such
Person’s Permitted Discretion, deems necessary or desirable (i) to
preserve or protect the Collateral, or any portion thereof, (ii) to
enhance the likelihood of, or maximize the amount of, repayment of the Loans
and other Obligations, or (iii) to pay any other amount chargeable to or
required to be paid by the Borrowers pursuant to the terms of this Agreement,
including payments of principal, interest, LC Disbursements, fees, reimbursable
expenses (including costs, fees, and expenses as described in Section 9.03)
and other sums payable under the Loan Documents (any of such Loans are herein
referred to as “Protective Advances”); provided that no
Protective Advance shall cause the sum of the total Revolving Credit Exposures
to exceed the Revolving Commitment; provided further
that, the aggregate amount of Protective Advances outstanding at any time,
which were made pursuant to clauses (i) and (ii) above, shall not at
any time exceed the lesser of (a) $10,000,000 and (b) 3% of the
Borrowing Base. Protective Advances may be made even if the conditions
precedent set forth in Section 4.02 have not been satisfied. The
Protective Advances shall be secured by the Liens in favor of the
Administrative Agent in and to the Collateral and shall constitute Obligations
hereunder. All Protective Advances shall be ABR Borrowings. The Administrative
Agent’s and Collateral Agent’s authorization to make Protective Advances may be
revoked at any time by the Required Lenders. Any such revocation must be in
writing and shall become effective prospectively upon the Administrative Agent’s
receipt thereof. At any time that there is sufficient Availability and the
conditions precedent set forth in Section 4.02 have been satisfied,
the Administrative Agent or the Collateral Agent may request the Revolving
Lenders to make a Revolving Loan to repay a Protective Advance. At any other
time the Administrative Agent or the Collateral Agent may require the
Lenders to fund their risk participations described in Section 2.05(b).

 

(b)                                 Upon
the making of a Protective Advance by the Administrative Agent or the
Collateral Agent (whether before or after the occurrence of a Default), each
Lender shall be deemed, without further action by any party hereto, to have
unconditionally and irrevocably purchased from the Administrative Agent or the
Collateral Agent, as applicable, without recourse or warranty, an undivided
interest and participation in such Protective Advance in proportion to its
Applicable Percentage of the Revolving Commitment. From and after the date, if
any, on which any Lender is required to fund its participation in any
Protective Advance purchased hereunder, the Administrative Agent shall promptly
distribute to such Lender, such Lender’s Applicable Percentage of all payments
of principal and interest and all proceeds of Collateral received by the
Administrative Agent in respect of such Protective Advance.

 

SECTION 2.06                                            Swingline
Loans and Overadvances. (a)  The Administrative Agent, the Swingline
Lender and the Revolving Lenders agree that in order to facilitate the
administration of this Agreement and the other Loan Documents, promptly after
the 

 

36

 

Administrative
Borrower requests an ABR Borrowing, the Swingline Lender may elect to have
the terms of this Section 2.06(a) apply to such Borrowing
Request by advancing, on behalf of the Revolving Lenders and in the amount
requested, same day funds to the Borrowers on the applicable Borrowing date to
the Funding Account (each such Loan made solely by the Swingline Lender
pursuant to this Section 2.06(a) is referred to in this
Agreement as a “Swingline Loan”), with settlement among them as to the
Swingline Loans to take place on a periodic basis as set forth in Section 2.06(d).
Each Swingline Loan shall be subject to all the terms and conditions applicable
to other ABR Loans funded by the Revolving Lenders, except that all payments
thereon shall be payable to the Swingline Lender solely for its own account. In
addition, the Borrowers hereby authorize the Swingline Lender to, and the
Swingline Lender shall, subject to the terms and conditions set forth herein
(but without any further written notice required), not later than 2:00 p.m.,
New York time, on each Business Day, make available to the Borrowers by means
of a credit to the Funding Account, the proceeds of a Swingline Loan to the
extent necessary to pay items to be drawn on any Controlled Disbursement
Account that day (as determined based on notice from the Administrative Agent).
The aggregate amount of Swingline Loans outstanding at any time shall not
exceed $25,000,000. The Swingline Lender shall not make any Swingline Loan if
the requested Swingline Loan exceeds Availability (before giving effect to such
Swingline Loan). Swingline Loans may be made even if a Default exists, but
may not be made if the conditions precedent set forth in Section 4.02
have not been satisfied or duly waived in accordance with the terms hereof. All
Swingline Loans shall be ABR Borrowings.

 

(b)                                 Any
provision of this Agreement to the contrary notwithstanding, at the request of
the Administrative Borrower, the Administrative Agent may in its sole
discretion (but with absolutely no obligation), make Revolving Loans to the
Borrowers, on behalf of the Revolving Lenders, in amounts that exceed
Availability (any such excess Revolving Loans are herein referred to
collectively as “Overadvances”); provided that, (i) no such
event or occurrence shall cause or constitute a waiver of the Administrative
Agent’s or the Revolving Lenders’ right to refuse to make any further Revolving
Loans or Swingline Loans, or issue Letters of Credit, as the case may be,
at any time that an Overadvance exists, and (ii) no Overadvance shall
result in a Default due to Borrowers’ failure to comply with Section 2.02
for so long as Administrative Agent permits such Overadvance to remain
outstanding, but solely with respect to the amount of such Overadvance. In
addition, Overadvances may be made even if a Default exists, but may not
be made if the conditions precedent set forth in Section 4.02 have
not been satisfied (other than the condition regarding Availability). All
Overadvances shall constitute ABR Borrowings. The authority of the
Administrative Agent to make Overadvances is limited to an aggregate amount not
to exceed $12,500,000 at any time, no Overadvance may remain outstanding
for more than thirty days and no Overadvance shall cause any Revolving Lender’s
Revolving Credit Exposure to exceed its Revolving Commitment or the Aggregate
Credit Exposure to exceed the Revolving Commitment; provided that, the
Required Lenders may at any time revoke the Administrative Agent’s
authorization to make Overadvances. Any such revocation must be in writing and
shall become effective prospectively upon the Administrative Agent’s receipt
thereof.

 

(c)                                  Upon
the making of a Swingline Loan or an Overadvance (whether before or after the
occurrence of a Default and regardless of whether a Settlement has been
requested with respect to such Swingline Loan or Overadvance), each Revolving
Lender shall be deemed, without further action by any party hereto, to have
unconditionally and irrevocably 

 

37

 

purchased from
the Swingline Lender or the Administrative Agent, as the case may be,
without recourse or warranty, an undivided interest and participation in such
Swingline Loan or Overadvance in proportion to its Applicable Percentage of the
Revolving Commitment. The Swingline Lender or the Administrative Agent may, at
any time, require the Revolving Lenders to fund their participations. From and
after the date, if any, on which any Revolving Lender is required to fund its
participation in any Swingline Loan or Overadvance purchased hereunder, the
Administrative Agent shall promptly distribute to such Lender, such Lender’s
Applicable Percentage of all payments of principal and interest and all
proceeds of Collateral received by the Administrative Agent in respect of such
Loan.

 

(d)                                 The
Administrative Agent, on behalf of the Swingline Lender, shall request
settlement (a “Settlement”) with the Revolving Lenders on at least a
weekly basis or on any date that the Administrative Agent elects, by notifying
the Revolving Lenders of such requested Settlement by facsimile, telephone, or
e-mail no later than 1:00 p.m. New York time on the date of such requested
Settlement (the “Settlement Date”). Each Revolving Lender (other than
the Swingline Lender, in the case of the Swingline Loans) shall transfer the
amount of such Revolving Lender’s Applicable Percentage of the outstanding
principal amount of the applicable Loan with respect to which Settlement is
requested to the Administrative Agent, to such account of the Administrative
Agent as the Administrative Agent may designate, not later than 3:00 p.m.,
New York time, on such Settlement Date. Settlements may occur during the
existence of a Default and whether or not the applicable conditions precedent
set forth in Section 4.02 have then been satisfied. Such amounts
transferred to the Administrative Agent shall be applied against the amounts of
the Swingline Lender’s Swingline Loans and, together with Swingline Lender’s
Applicable Percentage of such Swingline Loan, shall constitute Revolving Loans
of such Revolving Lenders, respectively. If any such amount is not transferred
to the Administrative Agent by any Revolving Lender on such Settlement Date,
the Swingline Lender shall be entitled to recover such amount on demand from
such Lender together with interest thereon as specified in Section 2.08.

 

SECTION 2.07                                            Letters
of Credit. (a)  General. Subject to the terms and conditions
set forth herein, the Administrative Borrower may request the issuance of
Letters of Credit for its own account, in a form acceptable to the
Administrative Agent and the Issuing Bank, at any time and from time to time
during the Availability Period. In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form of
letter of credit application or other agreement submitted by any Borrower to,
or entered into by any Borrower with, the Issuing Bank relating to any Letter
of Credit, the terms and conditions of this Agreement shall control.

 

(b)                                 Notice
of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of
an outstanding Letter of Credit), the Administrative Borrower shall hand
deliver or facsimile (or transmit by electronic communication, if arrangements
for doing so have been approved by the Issuing Bank) to the Issuing Bank and
the Administrative Agent (prior to 10:00 am, New York time, at least three
Business Days prior to the requested date of issuance, amendment, renewal or
extension or such shorter period as the Issuing Bank shall agree) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension 

 

38

 

(which shall
be a Business Day), the date on which such Letter of Credit is to expire (which
shall comply with Section 2.07(c)), the amount of such Letter of
Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare, amend, renew or extend such
Letter of Credit. If requested by the Issuing Bank, the Administrative Borrower
also shall submit a letter of credit application on the Issuing Bank’s standard
form in connection with any request for a Letter of Credit. A Letter of
Credit shall be issued, amended, renewed or extended only if (and upon
issuance, amendment, renewal or extension of each Letter of Credit each
Borrower shall be deemed to represent and warrant that), after giving effect to
such issuance, amendment, renewal or extension (i) the LC Exposure shall
not exceed $50,000,000, (ii) the total Revolving Credit Exposures shall
not exceed the lesser of (y) the total Revolving Commitments and (z) the
Borrowing Base, and (iii) issuance of such Letter of Credit would not
conflict with, or cause the Issuing Bank or any other Lender to exceed any
limits imposed by, any applicable law, treaty, rule or regulation or
determination of an arbitor or a court or Governmental Authority, which is
binding on the Issuing Bank or any other Lender or to which the Issuing Bank,
any other Lender or any of their respective property is subject.

 

(c)                                  Expiration
Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the
issuance of such Letter of Credit (or, in the case of any renewal or extension
thereof, one year after such renewal or extension) and (ii) the date that
is five Business Days prior to the Maturity Date.

 

(d)                                 Participations.
By the issuance of a Letter of Credit (or an amendment to a Letter of Credit
increasing the amount thereof) and without any further action on the part of
the Issuing Bank or the Revolving Lenders, the Issuing Bank hereby grants to
each Revolving Lender, and each Revolving Lender hereby acquires from the
Issuing Bank, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such
Letter of Credit. In consideration and in furtherance of the foregoing, each
Revolving Lender hereby absolutely and unconditionally agrees to pay to the
Administrative Agent, for the account of the Issuing Bank, such Lender’s
Applicable Percentage of each LC Disbursement made by the Issuing Bank and not
reimbursed by the Borrowers on the date due as provided in Section 2.07(e),
or of any reimbursement payment required to be refunded to any Borrower for any
reason. Each Revolving Lender acknowledges and agrees that its obligation to
acquire participations pursuant to this subsection in respect of Letters
of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Revolving Commitments, and that each such payment shall be
made without any offset, abatement, withholding or reduction whatsoever.

 

(e)                                  Reimbursement.
If the Issuing Bank shall make any LC Disbursement in respect of a Letter of
Credit, each Borrower jointly and severally agrees to reimburse such LC
Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement not later than 2:00 p.m., New York time, on the date that
such LC Disbursement is made, if the Administrative Borrower shall have
received notice of such LC Disbursement prior to 10:00 a.m., New York
time, on such date, or, if such notice has not been received by the
Administrative Borrower prior to such time on such date, then not later than
2:00 p.m., New York time, on (i) the Business Day that the
Administrative Borrower receives such 

 

39

 

notice, if
such notice is received prior to 10:00 a.m., New York time, on the day of
receipt, or (ii) the Business Day immediately following the day that the
Administrative Borrower receives such notice, if such notice is not received
prior to such time on the day of receipt; provided that the
Administrative Borrower may, subject to the conditions to borrowing set forth
herein, request in accordance with Section 2.04 or 2.06 that
such payment be financed with an ABR Borrowing or Swingline Loan in an
equivalent amount and, to the extent so financed, the Borrowers’ obligations to
make such payment shall be discharged and replaced by the resulting ABR
Borrowing or Swingline Loan. If the Borrowers fail to make such payment when
due, the Administrative Agent shall notify each Revolving Lender of the
applicable LC Disbursement, the payment then due from the Borrowers in respect
thereof and such Lender’s Applicable Percentage thereof. Promptly following
receipt of such notice, each Revolving Lender shall pay to the Administrative
Agent its Applicable Percentage of the payment then due from the Borrowers, in
the same manner as provided in Section 2.08 with respect to Loans
made by such Lender (and Section 2.08 shall apply, mutatis mutandis, to the payment obligations
of the Revolving Lenders), and the Administrative Agent shall promptly pay to
the Issuing Bank the amounts so received by it from the Revolving Lenders.
Promptly following receipt by the Administrative Agent of any payment from the
Borrowers pursuant to this subsection (e), the Administrative Agent shall
distribute such payment to the Issuing Bank or, to the extent that Revolving
Lenders have made payments pursuant to this subsection (e) to
reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their
interests may appear. Any payment made by a Revolving Lender pursuant to
this subsection (e) to reimburse the Issuing Bank for any LC
Disbursement (other than the funding of ABR Revolving Loans or a Swingline Loan
as contemplated above) shall not constitute a Loan and shall not relieve the
Borrowers of their obligations to reimburse such LC Disbursement.

 

(f)                                    Obligations
Absolute. Each Borrower’s obligation to reimburse LC Disbursements as
provided in Section 2.07(e) shall be absolute, unconditional
and irrevocable, and shall be performed strictly in accordance with the terms
of this Agreement under any and all circumstances whatsoever and irrespective
of (i) any lack of validity or enforceability of any Letter of Credit or
this Agreement, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or
invalid in any respect or any statement therein being untrue or inaccurate in
any respect, (iii) payment by the Issuing Bank under a Letter of Credit
against presentation of a draft or other document that does not comply with the
terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section 2.07(f), constitute a legal or
equitable discharge of, or provide a right of setoff against, such Borrower’s
obligations hereunder. Neither the Administrative Agent, the Collateral Agent,
the Revolving Lenders nor the Issuing Bank, nor any of their Related Parties,
shall have any liability or responsibility by reason of or in connection with
the issuance or transfer of any Letter of Credit or any payment or failure to
make any payment thereunder (irrespective of any of the circumstances referred
to in the preceding sentence), or any error, omission, interruption, loss or
delay in transmission or delivery of any draft, notice or other communication
under or relating to any Letter of Credit (including any document required to
make a drawing thereunder), any error in interpretation of technical terms or
any consequence arising from causes beyond the control of the Issuing Bank; provided
that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrowers to the 

 

40

 

extent of any
direct damages (as opposed to consequential damages, claims in respect of which
are hereby waived by the Borrowers to the extent permitted by applicable law)
suffered by the Borrowers that are caused by the Issuing Bank’s willful
misconduct or gross negligence (as finally determined by a court of competent
jurisdiction) when determining whether drafts and other documents presented
under a Letter of Credit comply with the terms thereof. In furtherance of the
foregoing and without limiting the generality thereof, the parties agree that,
with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and refuse to make payment
upon such documents if such documents are not in strict compliance with the
terms of such Letter of Credit.

 

(g)                                 Disbursement
Procedures. The Issuing Bank shall, promptly following its receipt thereof,
examine all documents purporting to represent a demand for payment under a
Letter of Credit. The Issuing Bank shall promptly notify the Administrative
Agent and the Administrative Borrower by telephone (confirmed by facsimile) of
such demand for payment and whether the Issuing Bank has made or will make an
LC Disbursement thereunder; provided that any failure to give or delay
in giving such notice shall not relieve the Borrowers of their obligations to
reimburse the Issuing Bank and the Revolving Lenders with respect to any such
LC Disbursement.

 

(h)                                 Interim
Interest. If the Issuing Bank shall make any LC Disbursement, then, unless
the Borrowers shall reimburse such LC Disbursement in full on the date such LC
Disbursement is made, the unpaid amount thereof shall bear interest, for each
day from and including the date such LC Disbursement is made to but excluding
the date that the Borrowers reimburse such LC Disbursement, at the rate per
annum then applicable to ABR Revolving Loans; provided that, if the
Borrowers fail to reimburse such LC Disbursement when due pursuant to Section 2.07(e),
then Section 2.14(d) shall apply. Interest accrued pursuant to
this subsection shall be for the account of the Issuing Bank, except that
interest accrued on and after the date of payment by any Revolving Lender
pursuant to Section 2.07(e) to reimburse the Issuing Bank
shall be for the account of such Lender to the extent of such payment.

 

(i)                                     Replacement
of the Issuing Bank. The Issuing Bank may be replaced at any time by
written agreement among the Administrative Borrower, the Administrative Agent
and the successor Issuing Bank. The Administrative Agent shall notify the
Revolving Lenders of any such replacement of the Issuing Bank. At the time any
such replacement shall become effective, the Borrowers jointly and severally
agree to pay all unpaid fees accrued for the account of the replaced Issuing
Bank pursuant to Section 2.13(b). From and after the effective date
of any such replacement, (i) the successor Issuing Bank shall have all the
rights and obligations of the Issuing Bank under this Agreement with respect to
Letters of Credit to be issued thereafter, and (ii) references herein to
the term “Issuing Bank” shall be deemed to refer to such successor or to any
previous Issuing Bank, or to such successor and all previous Issuing Banks, as
the context shall require. After the replacement of an Issuing Bank hereunder,
the replaced Issuing Bank shall remain a party hereto and shall continue to
have all the rights and obligations of an Issuing Bank under this Agreement
with respect to Letters of Credit issued by it prior to such replacement, but
shall not be required to issue additional Letters of Credit.

 

41

 

(j)                                     Cash
Collateralization. (i)   If any
Event of Default shall occur and be continuing, on the Business Day that the
Administrative Borrower receives notice from the Administrative Agent or the
Required Lenders demanding the deposit of cash collateral pursuant to this
subsection, the Borrowers jointly and severally agree to deposit in an account
with the Administrative Agent, in the name of the Administrative Agent and for
the benefit of the Revolving Lenders (the “LC Collateral Account”), an
amount in cash equal to 103% of the LC Shortfall as of such date; provided
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default
with respect to any Borrower described in clause (g) or (h) of Article VII.
Such deposit shall be held by the Administrative Agent as collateral for the
payment and performance of the Obligations. The Administrative Agent shall have
exclusive dominion and control, including the exclusive right of withdrawal,
over such account and each Borrower hereby grants the Administrative Agent a
security interest in the LC Collateral Account. Other than any interest earned
on the investment of such deposits, which investments shall be made at the
option and sole discretion of the Administrative Agent and at the Borrowers’
risk and expense, such deposits shall not bear interest. Interest or profits,
if any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the Issuing
Bank for LC Disbursements for which it has not been reimbursed and, to the extent
not so applied, shall be held for the satisfaction of the reimbursement
obligations of the Borrowers for the LC Exposure at such time or, if the
maturity of the Loans has been accelerated, be applied to satisfy other
Obligations. To the extent cash collateral has been deposited in the LC
Collateral Account in accordance with this Section 2.07 with
respect to Letters of Credit which are later returned undrawn to the
Administrative Agent or expire or are otherwise cancelled, the Administrative
Agent shall, upon the request of the Administrative Borrower, apply such cash
collateral to satisfy any outstanding Obligations constituting Revolving Loans,
Swingline Loans, Protective Advances, Overadvances, or LC Disbursements, or to
the extent no such Obligations are then outstanding, to either satisfy
outstanding Term Loans, or in the Administrative Agent’s Permitted Discretion,
return the remaining funds to the Borrowers. If the Borrowers are required to
provide an amount of cash collateral hereunder as a result of the occurrence of
an Event of Default, such amount (to the extent not applied as aforesaid) shall
be returned to the Borrowers within three Business Days after all such Defaults
have been cured or waived, unless needed to satisfy Section 2.07(j)(ii).

 

(ii)                                  If,
notwithstanding the provisions of this Section 2.07, any Letter of
Credit is outstanding on the Maturity Date, then on such date each Borrower
jointly and severally agrees to deposit with the Administrative Agent, for the
benefit of the Administrative Agent and the Revolving Lenders, with respect to
all LC Exposure, either (y) a Supporting Letter of Credit (under which the
Administrative Agent is entitled to draw amounts necessary to reimburse the
Issuing Bank for LC Disbursements for which it has not been reimbursed and any
fees and expenses associated with such outstanding Letter of Credit), or (z)
cash, in immediately available funds, in an amount equal to 103% of the LC
Shortfall Amount to be held in the LC Collateral Account. Such Supporting Letter
of Credit or deposit of cash shall be held by the Administrative Agent, for the
benefit of the Administrative Agent and the Revolving Lenders, as collateral
for the payment and performance of the obligations of the Borrowers under any
such Letter of Credit remaining outstanding.

 

42

 

SECTION 2.08                                            Funding
of Borrowings. (a)  Each Lender shall make each Loan to be made by it
hereunder on the proposed date thereof by wire transfer of immediately
available funds by 2:00 p.m., New York time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders in an amount equal to such Lender’s Applicable Percentage; provided
that Swingline Loans shall be made as provided in Section 2.06. 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; provided that ABR Revolving Loans made to finance the
reimbursement of (i) an LC Disbursement as provided in Section 2.07(e) shall
be remitted by the Administrative Agent to the Issuing Bank, and (ii) a
Protective Advance or an Overadvance shall be retained by the Administrative
Agent.

 

(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 2.08(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 Revolving Commitments (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 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 (i) 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 Revolving Commitment shall be deemed to be zero, (ii) such
Defaulting Lender shall not be entitled to any portion of the commitment fee,
and (iii) no commitment fee shall accrue on any of the Revolving
Commitments of a Defaulting Lender so long as such Lender shall be a Defaulting
Lender. This Section 2.08(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 

 

43

 

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 2.08(b) shall not be construed to
increase or otherwise affect the Revolving 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 2.09                                            Interest
Elections. (a)  Each Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a Eurodollar
Borrowing, shall have an initial Interest Period as specified in such Borrowing
Request; provided that only ABR Loans may be incurred during the
Primary Syndication. 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, in the case of a Eurodollar Borrowing, may elect
Interest Periods therefor, all as provided in this Section 2.09.
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. This Section 2.09
shall not apply to Swingline Borrowings, Overadvances or Protective Advances,
which may not be converted or continued.

 

(b)                                 To
make an election pursuant to this Section, the Administrative Borrower shall
notify the Administrative Agent of such election by telephone by the time that
a Borrowing Request would be required under Section 2.04 if the
Borrowers were requesting a Borrowing of the Type resulting from such election
to be made on the effective date of such election. 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;

 

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

 

44

 

(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.

 

(e)                                  If
the Administrative Borrower (on behalf of the Borrowers) fails to deliver a
timely Interest Election Request with respect to a Eurodollar Borrowing prior
to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period such
Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary
provision hereof, if a Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies the
Administrative Borrower, then, so long as a Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar
Borrowing, and (ii) unless repaid, each Eurodollar Borrowing shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

 

SECTION 2.10                                            Termination
and Reduction of Revolving Commitments. (a)  Unless previously
terminated, the Revolving Commitments shall terminate on the Maturity Date.

 

(b)                                 The
Administrative Borrower (on behalf of the Borrowers) may at any time
terminate the Revolving Commitments in full upon (i) the payment in full
of all outstanding Loans, together with accrued and unpaid interest thereon, (ii) the
cancellation and return of all outstanding Letters of Credit (or alternatively,
with respect to each such Letter of Credit, the furnishing to the
Administrative Agent of a cash deposit or Supporting Letter of Credit as
required by Section 2.07(j)(ii)), (iii) the payment in full of
any accrued and unpaid fees owing under any Loan Document, and (iv) the
payment in full of all reimbursable expenses and other Obligations (other than
Unliquidated Obligations, subject to cash collateralization thereof required
pursuant to Section 9.02(d)) together with accrued and unpaid
interest thereon, if applicable.

 

(c)                                  The
Administrative Borrower (on behalf of the Borrowers) may from time to time
reduce the Revolving Commitments; provided that (i) each reduction
of the Revolving Commitments shall be in an amount that is an integral multiple
of $500,000 and not less than $1,000,000, and (ii) the Borrowers shall not
reduce the Revolving Commitments if, after giving effect to any concurrent
prepayment of the Revolving Loans in accordance with Section 2.11,
the sum of the Revolving Credit Exposures would exceed the total Revolving
Commitments.

 

(d)                                 The
Administrative Borrower shall notify the Administrative Agent of any election
to terminate or reduce the Revolving Commitments under Section 2.10(b) 

 

45

 

or (c) at
least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Administrative
Borrower pursuant to this Section 2.10(d) shall be
irrevocable; provided that a notice of termination of the Revolving
Commitments delivered by the Administrative Borrower may state that such
notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Administrative Borrower (on
behalf of the Borrowers) (by notice to the Administrative Agent on or prior to
the specified effective date) if such condition is not satisfied. Any
termination or reduction of the Revolving Commitments shall be permanent. Each
reduction of the Revolving Commitments shall be made ratably among the Lenders
in accordance with their respective Revolving Commitments.

 

SECTION 2.11                                            Repayment
and Amortization of Loans; Evidence of Debt. (a)  The Borrowers hereby
unconditionally promise jointly and severally to pay (i) to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Revolving Loan on the Maturity Date, (ii) to the
Administrative Agent and/or the Collateral Agent for their own account the then
unpaid amount of each Protective Advance on the earlier of the Maturity Date
and demand by the Administrative Agent and/or the Collateral Agent, as
applicable, and (iii) to the Administrative Agent the then unpaid
principal amount of each Overadvance on the earlier of the Maturity Date and
demand by the Administrative Agent. All unpaid Obligations shall be paid in
full in cash by the Borrowers on the Maturity Date.

 

(b)                                 Subject
to Section 2.19(b), on each Business Day, at or before 12:00 noon,
New York time, the Administrative Agent shall apply all immediately available
funds credited to the Collection Account first to prepay any Protective
Advances and Overadvances that may be outstanding, pro rata, and second
to prepay the Revolving Loans (including Swingline Loans).

 

(c)                                  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.

 

(d)                                 The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Class and 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.

 

(e)                                  The
entries made in the accounts maintained pursuant to Section 2.11(c) or
(d) 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 

 

46

 

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

 

(f)                                    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 2.11(c) and (d).

 

SECTION 2.12                                            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 2.12(d).
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)                                     Except
for Overadvances permitted under Section 2.06, the Borrowers shall
immediately repay (or, in the case of LC Disbursements, cash collateralize) the
Revolving Loans, LC Disbursements and/or Swingline Loans if at any time the
total Revolving Credit Exposure of all Revolving Lenders exceeds the lesser of
(y) the Revolving Commitments and (z) the Borrowing Base, to the extent
required to eliminate such excess.

 

(ii)                                  Immediately
upon receipt by any Loan Party of proceeds of (x) any sale of any Collateral
not otherwise permitted hereunder or (y) any Recovery Event relating to any
Collateral, the Borrowers shall deliver, or cause to be delivered, such
proceeds to the Administrative Agent. Subject to the Intercreditor Agreement,
all of such proceeds shall be applied as set forth in accordance with Section 2.12(c) or
otherwise as provided in Section 2.19(b), as applicable. Nothing in
this Section 2.12(b)(ii) shall be construed to constitute
Administrative Agent’s or any Lender’s consent to any transaction that is not
permitted by other provisions of this Agreement or the other Loan Documents.

 

(c)                                  Subject
to Section 2.19(b), all such amounts pursuant to Sections
2.12(b)(ii) shall be applied, first to prepay any Protective
Advances and Overadvances that may be outstanding, pro rata, second,
to reimburse any outstanding LC Disbursements, and third to prepay the
Revolving Loans (including Swingline Loans) without a corresponding reduction
in the Revolving Commitment.

 

(d)                                 The
Administrative Borrower (on behalf of the Borrowers) shall notify the
Administrative Agent (and, in the case of prepayment of a Swingline Loan, the
Swingline Lender) 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 

 

47

 

Business Day
immediately prior to the date of prepayment. 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; provided that, if a
notice of prepayment is given in connection with a conditional notice of
termination of the Revolving Commitments as contemplated by Section 2.10,
then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.10. 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 applied ratably to the Revolving Loans
included in the prepaid Borrowing. Prepayments shall be accompanied by accrued
interest to the extent required by Section 2.14.

 

SECTION 2.13                                            Fees. (a)  
The Borrowers, jointly and severally, agree to pay to the Administrative
Agent for the account of each Lender a commitment fee, which, subject to Section 2.08(b),
shall accrue at the Applicable Rate on the average daily amount of the
Available Revolving Commitment of such Lender during the period from and
including the Effective Date to but excluding the date on which the Lenders’
Revolving Commitments terminate. Accrued commitment fees shall be payable in
arrears on the last day of each March, June, September and December and
on the date on which the Revolving Commitments terminate, commencing on the
first such date to occur after the date hereof. All fees shall be computed on
the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

 

(b)                                 The
Borrowers, jointly and severally, agree to pay (i) to the Administrative
Agent for the account of each Revolving Lender a participation fee with respect
to its participations in Letters of Credit, which shall accrue at the same
Applicable Rate used to determine the interest rate applicable to Eurodollar
Revolving Loans on the average daily amount of such Lender’s LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Effective Date to but excluding the
later of the date on which such Lender’s Revolving Commitment terminates and
the date on which such Revolving Lender ceases to have any LC Exposure, and (ii) to
the Issuing Bank a fronting fee, which shall accrue at the rate of 0.25% per
annum on the average daily amount of the LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during the period from
and including the Effective Date to but excluding the later of the date of
termination of the Revolving Commitments and the date on which there ceases to
be any LC Exposure, as well as the Issuing Bank’s standard fees with respect to
the issuance, amendment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. Participation fees and fronting fees accrued
through and including the last day of each March, June, September and December shall
be payable on the third Business Day following such last day, commencing on the
first such date to occur after the Effective Date; provided that all
such fees shall be payable on the date on which the Revolving Commitments
terminate and any such fees accruing after the date on which the Revolving
Commitments terminate shall be payable on demand. Any other fees payable to the
Issuing Bank pursuant to this subsection (b) shall be payable within
10 days after demand (together with proper supporting documentation).

 

(c)                                  The
Borrowers, jointly and severally, agree to pay to the Administrative Agent and
the Collateral Agent, for their own account, fees payable in the 

 

48

 

amounts and at
the times separately agreed upon between the Borrowers (or any of them) and the
Administrative Agent and the Borrowers (or any of them) and the Collateral
Agent.

 

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

 

SECTION 2.14                                            Interest.
(a)  The Loans comprising each ABR Borrowing (including each Swingline
Loan) 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 2.14, 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)                                 Each
Protective Advance and each Overadvance shall bear interest at the Alternate
Base Rate plus the
Applicable Rate for Revolving Loans plus 2% per annum (which interest rate shall not be
subject to increase pursuant to the foregoing clause (c)).

 

(e)                                  Accrued
interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and upon termination of the Revolving Commitments; provided
that (i) interest accrued pursuant to Section 2.14(d) shall
be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of
the Availability Period), 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 (other than mandatory
prepayments of an 

 

49

 

ABR Revolving
Loan prior to the end of the Availability Period), 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 (iii) in the
event of any conversion of any Eurodollar Revolving 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.

 

(f)                                    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 2.15                                            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, (i) any
Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective,
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing.

 

SECTION 2.16                                            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 the Issuing Bank; or

 

50

 

(ii)                                  impose
on any Lender or the Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurodollar Loans made by such Lender or
any Letter of Credit or participation therein;

 

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 the
Issuing Bank of participating in, issuing or maintaining any Letter of Credit
or to reduce the amount of any sum received or receivable by such Lender or the
Issuing Bank hereunder (whether of principal, interest or otherwise), then the
Borrowers jointly and severally agree to pay to such Lender or the Issuing
Bank, as the case may be, the additional amount or amounts that will compensate
such Lender or the Issuing Bank, as the case may be, for such additional
costs incurred or reduction suffered.

 

(b)                                 If
any Lender or the Issuing Bank 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 or the Issuing
Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding
company, if any, as a consequence of this Agreement or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the Issuing Bank, to a level below that which such Lender or
the Issuing Bank or such Lender’s or the Issuing Bank’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s
or the Issuing Bank’s policies and the policies of such Lender’s or the Issuing
Bank’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 or the Issuing Bank, as the case may be, the
additional amount or amounts that will compensate such Lender or the Issuing
Bank or such Lender’s or the Issuing Bank’s holding company for any such
reduction suffered.

 

(c)                                  A
reasonably detailed certificate of a Lender or the Issuing Bank setting forth
the amount or amounts necessary to compensate such Lender or the Issuing Bank
or its holding company, as the case may be, as specified in Section 2.16(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 or the Issuing Bank, as the case may be, 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 or the Issuing Bank to demand
compensation pursuant to this Section 2.16 shall not constitute a
waiver of such Lender’s or the Issuing Bank’s right to demand such
compensation; provided that no Borrower shall be required to compensate
a Lender or the Issuing Bank pursuant to this Section for any increased
costs or reductions incurred more than 180 days prior to the date that such
Lender or the Issuing Bank, as the case may be, notifies the
Administrative Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or the Issuing Bank’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 2.16
shall not govern increased costs relating or attributable to taxes and 

 

51

 

(ii) all
increased costs relating or attributable to taxes shall be governed solely and
exclusively by Section 2.18.

 

SECTION 2.17                                            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 2.17 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.

 

SECTION 2.18                                            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 2.18(a)) the
Administrative Agent, Lender or Issuing Bank (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 2.18(e) below, the Borrowers shall indemnify the
Administrative Agent, the Collateral Agent, each Lender and the Issuing Bank,
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, the
Collateral Agent, such Lender or the Issuing Bank, 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 2.18)
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, the Collateral 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, Issuing Bank, the Collateral
Agent 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, Issuing Bank’s, the Collateral Agent’s or the
Administrative Agent’s payment of such 

 

52

 

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, Issuing Bank,
Collateral Agent 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 2.18
in accordance with Section 9.04, after the date on which such
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. The
Issuing Bank and 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 Issuing Bank or
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 Issuing Bank
or Lender (or assignee) is organized under the laws of the United States and is
not subject to backup withholding.

 

(f)                                    If
the Administrative Agent, Collateral 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 2.18(a) or
Section 2.18(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 2.18 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, Collateral 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, Collateral 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, the Collateral Agent or such Lender in
the event the Administrative Agent 

 

53

 

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 2.18 shall not be construed to require the
Administrative Agent, Collateral 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).

 

(h)                                 Each
assignee of a Lender’s interest in this Agreement in conformity with Section 9.04
shall be bound by this Section 2.18, 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 2.18.

 

SECTION 2.19                                            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, fees or reimbursement of LC Disbursements, or
of amounts payable under Section 2.16, 2.17 or 2.18,
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 1133 Avenue of the
Americas, New York, NY 10036, except payments to be made directly to the
Issuing Bank or Swingline Lender as expressly provided herein. 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, cash or other immediately
available funds from collections of items of payment deposited into a
Collection Account and 

 

54

 

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 or the Collateral Agent (i) not constituting either (A) a
specific payment of principal, interest, fees or other sum payable under the
Loan Documents, (B) a mandatory prepayment (which shall be applied in
accordance with Section 2.12), or (z) amounts to be applied
from the Collection Account (which shall be applied in accordance with Section 2.11(b)),
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
Revolving Loans, including amounts then due to the Administrative Agent,
Collateral Agent and the Issuing Bank from the Borrowers (other than in
connection with Banking Services or Swap Obligations), second, to pay
any fees or expense reimbursements then due to the Lenders from the Borrowers
(other than in connection with Banking Services or Swap Obligations), third,
to pay interest due in respect of the Overadvances and Protective Advances, fourth,
to pay the principal of the Overadvances and Protective Advances, fifth,
to pay interest then due and payable on the Loans (other than the Overadvances
and Protective Advances) ratably, sixth, to the payment of principal on
the Loans (other than the Overadvances and Protective Advances) and
unreimbursed LC Disbursements ratably, seventh, to pay an amount to the
Administrative Agent equal to one hundred three percent (103%) of the aggregate
undrawn face amount of all outstanding Letters of Credit and the aggregate
amount of any unpaid LC Disbursements, to be held as cash collateral for such
Obligations, eighth, to payment of any amounts owing with respect to
Banking Services and Swap Obligations, ninth, to the payment of any
other Obligation due to the Administrative Agent, the Collateral Agent or any
Lender by the Borrowers, tenth, to prepay amounts pursuant to the First
Lien Term Loan Credit Agreement and eleventh, to prepay amounts pursuant
to the Second Lien Term Loan 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
of a Class, 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 of the same Class and,
in any event, the Borrowers shall pay the break funding payment required in
accordance with Section 2.17.

 

(c)                                  At
the election of the Administrative Agent, all payments of principal, interest,
LC Disbursements, 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 paid
from the proceeds of Borrowings made hereunder whether made following a request
by the Administrative Borrower pursuant to Section 2.04 or a deemed
request as provided in this Section 2.19 or may be deducted
from any Deposit Account of any Borrower maintained with the Administrative
Agent. The Borrowers hereby irrevocably authorize (i) the Administrative
Agent to make a Borrowing for the purpose of paying each payment of principal,
interest and fees as it becomes due hereunder or any other amount due under the
Loan Documents and agree that all such amounts charged shall constitute Loans
(including Swingline Loan, Overadvances and Protective Advances) and that all
such Borrowings shall be deemed to have been requested pursuant to Sections
2.04, 2.05 or 2.06, as applicable, and (ii) the
Administrative Agent to charge 

 

55

 

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)                                 If
any Lender shall, by exercising any right of set off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Loans or participations in LC Disbursements resulting in such Lender
receiving payment of a greater proportion of the aggregate amount of its Loans
and participations in LC Disbursements and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the Loans
and participations in LC Disbursements of other Lenders to the extent necessary
so that the benefit of all such payments shall be shared by the Lenders ratably
in accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and participations in LC Disbursements; provided
that (i) if any such participations are purchased and all or any portion
of the payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this subsection shall
not be construed to apply to any payment made by any Borrower pursuant to and
in accordance with the express terms of this Agreement or any payment obtained
by a Lender as consideration for the assignment of or sale of a participation
in any of its Loans or participations in LC Disbursements to any assignee or
participant, other than to any Borrower or any Subsidiary thereof (as to which
the provisions of this subsection shall apply). The Borrowers consent to
the foregoing.

 

(e)                                  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 or the Issuing Bank 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 or the
Issuing Bank, as the case may be, the amount due. In such event, if the
Borrowers have not in fact made such payment, then each of the Lenders or the
Issuing Bank, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank 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.

 

(f)                                    If
any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.06, 2.07(d) or (e), 2.08(b), 2.19(e) 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 2.20                                            Mitigation
Obligations; Replacement of Lenders. If any Lender requests compensation
under Section 2.16 or Section 2.17, 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 2.18,
then:

 

56

 

(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 2.16, 2.17
or 2.18, 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 Borrower shall have received the prior written consent of the
Administrative Agent (and if a Revolving Commitment is being assigned, the
Issuing Bank), 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 and participations in LC Disbursements and
Swingline 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 2.16, Section 2.17
or payments required to be made pursuant to Section 2.18, 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 2.20(a), within the requirements of Section 2.20(a),
necessary to eliminate the continued need for payment of amounts owing pursuant
to Section 2.16, 2.17 or 2.18.

 

SECTION 2.21                                            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 2.21 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 2.21 shall survive the termination of
this Agreement.

 

57

 

SECTION 2.22                                            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 2.22), 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 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 2.22
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 2.22 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 2.22 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, the expiration or termination
of all Letters of Credit and the reimbursement of all LC Disbursements.

 

(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, the expiration or termination, or cash collateralization or
issuance of a Supporting Letter of Credit pursuant to Section 9.02(d),
of all Letters of Credit and the reimbursement of all LC Disbursements, and
this Agreement shall have been terminated. Any claim which any Borrower may have
against any other Borrower 

 

58

 

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, the
Collateral Agent, the Lenders and the Issuing Bank 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 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 

 

59

 

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 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 

 

60

 

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
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 

 

61

 

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.

 

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, Collateral Agent, Joint
Lead Arranger 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 and the issuance of each Letter of Credit, if any, made on
the date hereof and after giving effect to the application of the proceeds of
such Borrowing or such issuance of a Letter of Credit, (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; 

 

62

 

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 or
issuances of Letters of Credit 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
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 Collateral 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 First Lien 

 

63

 

Term Loan
Lenders with respect to the First Lien Term Loan Collateral and (iv) Liens
in favor of the Second Lien Term Loan Lenders with respect to the Second Lien
Term Loan Collateral.

 

(b)  The provisions of this Agreement
and the other Loan Documents create legal and valid Liens on all of the First
Lien Term Loan Collateral and Second Lien Term 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 First Lien Term Loan Collateral and Second Lien Term Loan Collateral,
securing the Obligations, enforceable against the applicable Loan Party and all
third parties, and having priority over all other Liens on the First Lien Term
Loan Collateral and Second Lien Term Loan Collateral except (a) Liens in
favor of the First Lien Term Loan Lenders and Second Lien Term Loan 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 First Lien Term Loan Collateral and Second Lien Term 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) 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, the
Collateral Agent, Joint Lead Arrangers or the Lenders in connection therewith
and fees paid in connection with the First Lien Term Loan Documents and Second
Lien Term Loan 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.

 

SECTION 3.21                                            Deposit
Account and Cash Management Accounts. Set forth on Schedule 3.22(a) is
a complete and accurate list, as of the Effective Date, of all Deposit Accounts
of each Loan Party and set forth on Schedule 3.22(b) is a
complete and accurate list, as of the Effective Date, of all Securities
Accounts (as defined in the UCC) of each Loan Party, if any.

 

64

 

ARTICLE IV

 

Conditions

 

SECTION 4.01                                            Effective
Date. The obligations of the Lenders to make Loans and of the Issuing Bank
to issue Letters of Credit 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
Joint Lead Arrangers (or their 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 Joint Lead Arrangers
(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
Joint Lead Arrangers shall have received duly executed copies of the other Loan
Documents and such other certificates, documents, instruments and agreements as
the Joint Lead Arrangers 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 Joint Lead Arrangers, the Issuing Bank and
the Lenders in form and substance acceptable to the Joint Lead Arrangers,
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 Joint Lead Arrangers.

 

(c)                                  The
Joint Lead Arrangers 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).

 

(d)                                 [INTENTIONALLY
OMITTED].

 

(e)                                  The
Joint Lead Arrangers shall have received duly executed copies of the First Lien
Term Loan Documents and the Second Lien Term Loan Documents and be reasonably
satisfied that the Borrowers have borrowed no more than $1,030,000,000 of 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 the
issuance of any Letters of Credit on the Effective Date and payment of all fees
and 

 

65

 

expenses due
hereunder on the Effective Date, and with all of the Borrowers’ indebtedness,
liabilities, and obligations current, the Borrowers’ Availability shall not be
less than  $75,000,000.

 

(h)                                 The
Administrative Agent, Collateral 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 Joint Lead Arrangers 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
Joint Lead Arrangers 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 Joint Lead Arrangers. 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 Joint Lead Arrangers (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 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
Joint Lead Arrangers shall have received the field examination dated as of October 31,
2006.

 

(l)                                     The
Borrowers shall have delivered to the Joint Lead Arrangers and the
Administrative Agent evidence of insurance with respect to the Borrowers
customary for 

 

66

 

similarly
situated companies, in form and substance reasonably satisfactory to the
Joint Lead Arrangers, including reasonably satisfactory endorsements naming the
Administrative Agent as mortgagee, loss payee or additional insured, as
applicable, on all such policies.

 

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

 

(n)                                 The
Joint Lead Arrangers shall have received updated appraisals conducted on
certain inventory of IBR, the Borrowers and their subsidiaries, such updated
appraisals not to deviate in a material and adverse manner from the prior
appraisals reviewed by the Joint Lead Arrangers.

 

(o)                                 [INTENTIONALLY
OMITTED].

 

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

 

(q)                                 The
Joint Lead Arrangers 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.

 

(r)                                    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
Joint Lead Arrangers to CT Corporation System or another similar filing service
company acceptable to the Joint Lead Arrangers (the “Filing Agent”). The
Filing Agent shall have acknowledged in a writing satisfactory to the Joint
Lead Arrangers and their 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 Joint Lead Arrangers and their counsel of the results of
such submissions and will provide recorded copies of the same within 30 days
following the Effective Date.

 

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

 

SECTION 4.02                                            Each
Credit Event. The obligation of each Lender to make a Revolving Loan
(including the initial Revolving Loan), and of the Issuing Bank to issue, renew
or extend any Letter of Credit, is subject to the satisfaction of the following
conditions:

 

(a)                                  Both
before and after giving effect to any such Loan, the representations and
warranties of each Loan Party set forth in this Agreement and each other Loan
Document shall be true and correct in all material respects on and as of the
date of such 

 

67

 

Borrowing or
the date of issuance, renewal or extension of such Letter of Credit, as
applicable (except, in each case, to the extent that such representations and
warranties expressly relate to an earlier date, in which case such
representations and warranties shall be true and correct in all material
respects as of such earlier date).

 

(b)                                 At
the time of and immediately after giving effect to such Borrowing or the
issuance, renewal or extension of such Letter of Credit, as applicable, no
Default shall have occurred and be continuing

 

(c)                                  After
giving effect to such Borrowing or the issuance, renewal or extension of such
Letter of Credit, as applicable, Availability is not less than zero.

 

Each advance of a Revolving Loan and each issuance, renewal or
extension of a Letter of Credit shall be deemed to constitute a representation
and warranty by each Borrower on the date thereof as to the matters specified
in Sections 4.02(a), (b) and (c).

 

ARTICLE V

 

Affirmative
Covenants

 

Until the Revolving 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 and all Letters of Credit shall have expired or
terminated and all LC Disbursements shall have been reimbursed, the Borrowers
each covenant and agree with the Administrative Agent, the Collateral Agent,
the Lenders and the Issuing Bank that:

 

SECTION 5.01                                            Financial
Statements; Borrowing Base and Other Information. The Borrowers will
furnish to the Administrative Agent (for delivery to each Lender) and/or the
Collateral Agent (for delivery to each Lender), as applicable:

 

(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 

 

68

 

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 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 C (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;

 

69

 

(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,
2007, 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)                                 within
15 days of the end of each calendar month, and at such other times as may be
requested by the Collateral Agent, as of the period then ended, a Borrowing
Base Certificate and, within 15 days of the end of each calendar month, and at
such other times as may be requested by the Collateral Agent, supporting
information in connection therewith, in each case with a copy to the
Administrative Agent; provided that if at any time the Borrowers’
Availability is less than $32,500,000, the Borrowers will furnish a Borrowing
Base Certificate within five days of the end of each Friday relating to the
previous week until such time as the Borrowers’ Availability is equal to at
least $32,500,000; provided that in the case of any Borrowing Base Certificate
required to be delivered weekly, the Borrowers may use the reserve
percentages for ineligible Accounts and reclassified Eligible Accounts and
Eligible Inventory from the previous month.

 

(h)                                 within
15 days of the end of each calendar month and at such other times as may be
requested by the Collateral Agent, as of the period then ended, in each case
with a copy to the Administrative Agent:

 

(i)                                     a
detailed aging of the Loan Parties’ Accounts (y) including all invoices aged by
invoice date (or by due date, so long as the basis for aging of each invoice is
clearly specified) and (z) reconciled to the Borrowing Base Certificate
delivered as of such date prepared in a manner reasonably acceptable to the
Collateral Agent, together with a summary specifying the name and balance due
for each Account Debtor (or the payor with respect to Express Script sales);

 

(ii)                                  a
schedule detailing the Loan Parties’ Inventory, in form reasonably
satisfactory to the Collateral Agent, (x) by location (showing Inventory in
transit, any Inventory located with a third party under any consignment, bailee
arrangement, or warehouse agreement), by class (raw material, raw plasma, “filled-not-packed”,
“packed-not-released”, work-in-process and finished goods), by product type, by
volume on hand and, with respect to finished goods and raw plasma, by expiry
date which Inventory in the aggregate shall be valued in accordance with GAAP
at the lower of cost (determined on a first-in, first-out basis) or market and
adjusted for Reserves as the Collateral Agent has previously established in
accordance with the terms hereof, (y) including a report of any variances or
other results of Inventory counts performed by the Loan Parties since the last
Inventory schedule (including information regarding sales or other
reductions, additions, returns, credits issued by the Loan Parties and
complaints and claims made against the Loan Parties), and (z) reconciled to the
Borrowing Base Certificate delivered as of such date;

 

(iii)                               a
worksheet of calculations prepared by the Loan Parties to determine Eligible
Accounts and Eligible Inventory, such worksheets detailing the 

 

70

Accounts and Inventory excluded from Eligible Accounts and Eligible
Inventory and the reason for such exclusion;

 

(iv)          a
reconciliation of the Loan Parties’ Accounts and Inventory between the amounts
shown in the Loan Parties’ general ledger and financial statements and the
reports delivered pursuant to clauses (i) and (ii) above; and

 

(v)           a
reconciliation of the loan balance per the Loan Parties’ general ledger to the
loan balance under this Agreement;

 

(i)            within 15 days of the end of each calendar month and at
such other times as may be requested by the Collateral Agent, as of the month
then ended, a schedule and aging of the Loan Parties’ accounts payable, in each
case with a copy to the Administrative Agent;

 

(j)            promptly upon the Collateral Agent’s request, in each
case with a copy to the Administrative Agent:

 

(i)            copies
of invoices issued by any Loan Party in connection with any Accounts, credit
memos, shipping and delivery documents, and other information related thereto;

 

(ii)           copies
of purchase orders, invoices, and shipping and delivery documents in connection
with any Inventory or equipment purchased by any Loan Party; and

 

(iii)          a
schedule detailing the balance of all intercompany accounts of the Loan
Parties;

 

(k)           promptly upon the Collateral Agent’s request, the
Borrowers’ sales journal, cash receipts journal (identifying trade and
non-trade cash receipts) and debit memo/credit memo journal, in each case with
a copy to the Administrative Agent;

 

(l)            concurrently with any delivery of financial statements
under clause (c) above with respect to each May and November, an updated
customer list for the Borrowers, which list shall state the customer’s name,
mailing address and phone number and shall be certified as true and correct by
an Authorized Officer of the Administrative Borrower;

 

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

 

(n)           promptly following any request therefor, such other
information regarding the operations, business affairs and financial condition
of the Loan Parties, or

 

71

 

compliance with the terms of this Agreement,
as the Administrative Agent or the Collateral Agent may reasonably request; and

 

(o)           promptly upon the execution and delivery thereof, a copy
of any amendment, supplement or modification to any First Lien Term Loan
Document, Second Lien Term 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 and the Collateral
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)           the opening of any new Deposit Account by any Borrower
with any bank or other financial institution;

 

(e)           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;

 

(f)            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 included in the Borrowing Base 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;

 

(g)           all material amendments to real estate leases of any
Specified Leasehold Property, together with a copy of each such amendment;

 

72

 

(h)           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

 

(i)            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 or the Collateral 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

 

73

 

from their books 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 and the Collateral Agent (who may be accompanied by
representatives designated by any Lender) with access to their suppliers. The
Borrowers acknowledge that the Administrative Agent and the Collateral 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 and Letters of
Credit. The proceeds of the Loans will be used (i) to consummate a portion
of the Transaction in an amount not to exceed $71,800,000 (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 (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. Letters of Credit will be
issued only to support the working capital needs and other general corporate
purposes of the Borrowers.

 

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

 

74

 

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 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               Appraisals. At any time
that the Collateral Agent reasonably requests, the Borrowers will provide the
Collateral Agent with appraisals or updates thereof of their Inventory,
equipment and real property from an appraiser selected and engaged by the
Collateral Agent, and prepared on a basis reasonably satisfactory to the
Collateral Agent, such appraisals and updates to include, without limitation,
information required by applicable law and regulations; provided, however,
that if no Default has occurred and is continuing, only one such appraisal per
calendar year for each of Inventory, equipment and real property shall be at
the expense of the Borrowers.

 

SECTION 5.11               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 or the Collateral 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, First Lien Term Loan Document or

 

75

 

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.

 

(b)           The Borrowers will cause any Equity Interests, Specified
Real Property (or, with respect to any such lease of Specified Leasehold
Property, will use commercially reasonable efforts to) or other assets that are
subject to a first priority, perfected Lien in favor of the First Lien Term
Loan Lenders (or the administrative agent on behalf of such First Lien Term
Loan Lenders) under the First Lien Term Loan Documents and a second priority,
perfected Lien in favor of the Second Lien Term Loan Lenders for the
Administrative Agent on behalf of such Second Lien Term Loan Lenders under the
Second Lien Term 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
or the Collateral Agent such documents and agreements, and will take or cause
to be taken such actions as the Administrative Agent or the Collateral 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)           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

 

76

 

(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 5.12               Depository Bank. The
Borrowers will use commercially reasonable efforts to establish the Administrative
Agent as their principal depository bank, including for the maintenance of
operating, administrative, cash management, collection activity, and other
deposit accounts for the conduct of its business, and will maintain cash
management arrangements otherwise reasonably acceptable to the Administrative
Agent.

 

SECTION 5.13               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 5.14               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.

 

ARTICLE VI

 

Negative Covenants

 

Until the
Revolving Commitments have expired or terminated and the principal of and
interest on each Loan and all fees payable hereunder have been paid in full and
all Letters of Credit have expired or terminated and all LC Disbursements shall
have been reimbursed, the Borrowers covenant and agree with the Administrative
Agent, the Collateral Agent, the Issuing Bank 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, 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

 

77

 

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

 

(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

 

78

 

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 First Lien Term Loan Credit Agreement, the
Second Lien Term Loan 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(m) 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 and fixtures thereon in an aggregate principal amount not
exceeding $20,000,000 at any time outstanding;

 

79

 

(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 that would not otherwise (without regard to such financing or Liens
granted with respect thereto) constitute Eligible Accounts, or Eligible
Inventory;

 

(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; provided that
after giving effect to such incurrence, the Borrowers shall have a minimum pro
forma Availability as of the date of such incurrence (after giving effect to
the funding of all Revolving Loans and the issuance of all Letters of Credit to
be funded or issued as of such date) of not less than $32,500,000.

 

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)            [INTENTIONALLY OMITTED];

 

80

 

(g)           Liens securing the First Lien Obligations and the Second
Lien 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.

 

Notwithstanding the foregoing, none of the
Liens permitted pursuant to this Section 6.02 (other than clauses (f)
and (g) hereof, clause (i) hereof to the extent it relates to Liens securing
Indebtedness permitted by Section 6.01, and Permitted Encumbrances
listed in clauses (a) (with regard to uncontested taxes), (b) (with regard to
uncontested Liens for amounts not overdue), and (g) of the definition thereof)
may at any time attach to any Loan Party’s (i) Accounts and (ii) Inventory.

 

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, the consideration for which sale shall
include cash consideration of not less than the portion of the Borrowing Base
(if any) attributable to such disposed assets, unless otherwise agreed by the
Administrative Agent in its sole discretion, (viii) if at the time thereof

 

81

 

and immediately after giving effect thereto
(1) no Event of Default shall have occurred and be continuing and (2) the
Borrowers’ shall have a minimum pro forma Availability of not less than
$32,500,000, 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, the consideration for which sales shall in each case include cash consideration
of not less than the portion of the Borrowing Base (if any) attributable to
such disposed assets, unless otherwise agreed by the Administrative Agent in
its sole discretion, provided, that the aggregate portion of the
Borrowing Base attributable to such disposed assets shall not exceed
$20,000,000 in the aggregate, (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(m), 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)(s), (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 2.12, 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);

 

82

 

(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)           subject to Sections 4.4 and 7.5(a)(vii) of the Security
Agreement or any comparable sections of the Subsidiary Security Agreements,
notes payable, or stock or other securities issued by Account Debtors to a Loan
Party (other than Parent) pursuant to negotiated agreements with respect to
settlement of such Account Debtor’s Accounts in the ordinary course of
business;

 

(h)           [INTENTIONALLY OMITTED];

 

(i)            Investments incurred in order to consummate Permitted
Acquisitions, provided that (i) the consideration for all such
Acquisitions, in the aggregate does 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 Section 6.04(m), (q) and (r), 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) after giving effect to such Acquisition, the Borrowers
shall have a minimum pro forma Availability as of the date of consummation of
such Acquisition (after giving effect to the funding of all Revolving Loans and
the issuance of all Letters of Credit to be funded or issued as of such date
and the inclusion in the Borrowing Base of acquired Accounts and Inventory for
which field examinations and appraisals have been completed and that would be
Eligible Accounts and Eligible Inventory upon acquisition thereof by the
applicable Borrowers) of not less than $32,500,000, (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(m), 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(i)(i) or 6.04(m), to
fund repurchases or

 

83

 

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 5.11 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);

 

(j)            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;

 

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

 

(l)            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;

 

(m)          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) after giving effect to such Investment, the Borrowers
shall have a minimum pro forma Availability as of the date of consummation of
such Investment (after giving effect to the funding of all Revolving Loans and
the issuance of all Letters of Credit to be funded or issued as of such date)
of not less than $32,500,000, (C) so long as the Loan Parties have complied
with Section 5.11 with respect thereto, and (iv) if such Investment
constitutes an Acquisition, the Loan Parties shall have complied with clauses
(iv), (v), (vi), and (viii) of Section 6.04(i);

 

(n)           Investments by the Loan Parties in new domestic
subsidiaries, so long as the Loan Parties and such subsidiaries are in
compliance with Section 5.11 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 5.11, 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);

 

84

 

(o)           so long as the Loan Parties have complied with Section
5.11 with respect thereto, other Investments in an aggregate amount not to
exceed $20,000,000 at any time outstanding, provided that (i) after
giving effect to such Investment, the Borrowers shall have a minimum pro forma Availability
as of the date of such Investment (after giving effect to the funding of all
Revolving Loans and the issuance of all Letters of Credit to be funded or
issued as of such date) of not less than $32,500,000 and (ii) if such
Investment constitutes an Acquisition, the Loan Parties shall have complied
with clauses (ii), (iv), (v), (vi) and (viii) of Section 6.04(i) with
respect thereto;

 

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

 

(q)           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(i);
and

 

(r)            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(i),
(m) 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) after giving effect to
such Preplanned Investment, the Borrowers shall have a minimum pro forma
Availability as of the date of consummation of such Preplanned Investment
(after giving effect to the funding of all Revolving Loans and the issuance of
all Letters of Credit to be funded or issued as of such date and the inclusion
in the Borrowing Base of acquired Accounts and Inventory for which field
examinations and appraisals have been completed and that would be Eligible
Accounts and Eligible Inventory upon acquisition thereof by the applicable
Borrowers) of not less than $32,500,000, (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).

 

85

 

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 (1) no Event of Default has
occurred and is continuing and (2) after giving effect to such Restricted
Payment, the Borrowers shall have a minimum pro forma Availability as of the
date of such Restricted Payment (after giving effect to the funding of all
Revolving Loans and the issuance of all Letters of Credit to be funded or
issued as of such date) of not less than $32,500,000, 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 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

 

86

 

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 (i) no Event of Default has occurred and is
continuing and (ii) after giving effect to payment of such Management Fee, the
Borrowers shall have a minimum pro forma Availability as of the date of payment
of such Management Fee (after giving effect to the funding of all Revolving
Loans and the issuance of all Letters of Credit to be funded or issued as of
such date) of not less than $32,500,000; 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 First Lien Term Loan Documents or by the Second Lien Term
Loan 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 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.

 

87

 

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 Term Loan 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.

 

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

  	
   

  
	
  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.

 

88

 

SECTION 6.11               Financial Covenants. (a)
In the event that, at any time, the Borrowers’ minimum Availability as of such
date (after giving effect to the funding of all Revolving Loans and the
issuance of all Letters of Credit to be funded or issued as of such date) is
not equal to at least $32,500,000, then the Borrowers shall be required to
maintain, for any four (4) quarter period, a Fixed Charge Coverage Ratio of at
least 1.10:1.00.

 

(b)  For purposes of determining compliance with
the covenant in clause (a), 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 six
consecutive Fiscal Quarter period there shall be a period of at least two consecutive
Fiscal Quarters in which no Specified Equity Contribution is made and (ii) in
each ten 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 First
Lien Term Loan Document or partnership agreement (with respect to a
partnership), the 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) if required by this Agreement, 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 2.12(b) (ii).

 

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               Cash Management.

 

(a)           No later than 30 days following the Effective Date,
(except as such date may be extended with the consent of the Administrative
Agent) the Borrowers will, and will

 

89

 

cause each Subsidiary Guarantor to, deposit,
or cause to be deposited, promptly, and in any event no later than the end of
the Business Day immediately following receipt thereof, all of such Person’s
Collections into Deposit Accounts and/or Securities Accounts that are subject
to a Control Agreement; provided that the Loan Parties shall be
permitted to retain up to an aggregate of (i) $1,000,000 Canadian Dollars of
their Collections at any one time in accounts located in Canada, (ii)
€1,500,000 of their Collections at any one time in accounts located in Germany
and (iii) $3,700,000 of amounts collected on behalf of Hema-Quebec, in each
case, not subject to Control Agreements. The terms of the Deposit Accounts,
Securities Accounts and Control Agreement shall be reasonably satisfactory to
the Administrative Agent. Notwithstanding the foregoing, Controlled
Disbursement Accounts shall not be required to be subject to Control
Agreements.

 

(b)           Notwithstanding any provision of any Loan Document, if for
any consecutive five Business Day period the Borrowers’ Availability is less
than $32,500,000, the Administrative Agent shall, on behalf of the Lenders,
have full and exclusive dominion and control over the Borrowers’ Deposit
Accounts and Securities Accounts and the Borrowers will not be permitted to
withdraw funds from the Deposit Account or the Securities Account without the
consent of the Administrative Agent; provided that if for a consecutive
period of 30 Business Days the Borrowers’ Availability is in excess of
$32,500,000, dominion and control over the Deposit Accounts and the Securities
Accounts shall revert to the Borrowers.

 

SECTION 6.16               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
or any reimbursement obligation in respect of any LC Disbursement 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;

 

90

 

(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 Section 6.07 and 6.16);

 

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

 

91

 

(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 event, the
Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Administrative Borrower, take either or both of the following
actions, at the same or

 

92

 

different times:  (i) terminate the Revolving Commitments, and
thereupon the Revolving Commitments shall terminate immediately, and (ii)
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 Revolving Commitments shall
automatically terminate and 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 and the Collateral Agent may, and
at the request of the Required Lenders shall, exercise any rights and remedies
provided to the Administrative Agent and the Collateral 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 and the Collateral
Agent

 

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

 

Each Person
serving as the Administrative Agent and the Collateral 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 or
Collateral Agent, as applicable, 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 or the Collateral Agent, as
applicable, hereunder.

 

The
Administrative Agent and the Collateral 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) neither the Administrative Agent nor the
Collateral Agent shall be subject to any fiduciary or other implied duties,
regardless of whether an Event of Default has occurred and is continuing, (b)
neither the Administrative Agent nor the Collateral Agent shall 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 or the Collateral Agent, as applicable, is required
to exercise in writing as

 

93

 

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, neither
the Administrative Agent nor the Collateral Agent shall 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, the Collateral Agent,
or any of their Affiliates in any capacity. Neither the Administrative Agent
nor the Collateral Agent shall 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 and the
Collateral 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 or
the Collateral Agent, as applicable, by any Borrower or a Lender, and neither
the Administrative Agent nor the Collateral Agent shall 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 or the
Collateral Agent, as applicable.

 

The Administrative
Agent and the Collateral 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 and the Collateral 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 and the Collateral 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 and the Collateral Agent may perform any and all their
duties and exercise their rights and powers by or through any one or more
sub-agents appointed by the Administrative Agent or the Collateral Agent, as
applicable. The Administrative Agent, the Collateral 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 or the Collateral 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 or the Collateral Agent, as applicable.

 

The
Administrative Agent and the Collateral Agent may resign as Administrative
Agent or Collateral Agent, as applicable, upon 30 days’ notice to the Lenders
and the Administrative

 

94

 

Borrower effective upon appointment of a successor Administrative Agent
or Collateral Agent, as applicable. If the Administrative Agent or the Collateral
Agent shall resign as Administrative Agent or Collateral Agent, as applicable,
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 or Collateral
Agent, as applicable, and the term “Administrative Agent” or “Collateral Agent”,
as applicable, shall mean such successor agent effective upon such appointment
and approval, and the former Administrative Agent’s or Collateral Agent’s, as
applicable, rights, powers and duties as Administrative Agent or Collateral
Agent, as applicable, shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or Collateral Agent, as
applicable, or any of the parties to this Agreement or any holders of the Loans.
If no successor Administrative Agent or Collateral Agent, as applicable, 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 or Collateral Agent’s, as applicable,
giving of notice of resignation, then the retiring Administrative Agent or
Collateral Agent, as applicable, 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 or Collateral Agent,
respectively, as applicable, that shall be a bank (or Affiliate thereof) 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 or Collateral
Agent’s, as applicable, resignation as Administrative Agent or Collateral
Agent, as applicable, 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 or Collateral Agent, as applicable, under this Agreement
and the other Loan Documents.

 

Each Lender
acknowledges that it has, independently and without reliance upon the
Administrative Agent, the Collateral 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, the Collateral 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.

 

Neither the
Administrative Agent nor the Collateral Agent shall have an obligation to any
of the Lenders to ensure that the Collateral exists, is owned by the Loan
Parties, is cared for, protected or insured, is unencumbered by others, or that
the Liens granted to the Administrative Agent therein have been properly,
sufficiently or lawfully created, perfected, protected or enforced, or that
such Liens are entitled to any particular priority, it being understood and
agreed that in respect of the Collateral, or any act, omission, or event
related thereto, the Administrative Agent and the Collateral Agent may act in
any manner they may deem appropriate, in its sole discretion given the
Administrative Agent’s and Collateral Agent’s own interests in the

 

95

 

Collateral in their capacity as Lenders and that the Administrative
Agent and Collateral Agent shall have no other duty or liability whatsoever to
any Lender as to any of the foregoing.

 

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 other 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 and Collateral Agent thereof, and,
promptly upon the Administrative Agent’s or Collateral 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 or
Collateral 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) neither the
Administrative Agent nor the Collateral Agent (i) makes any 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 be liable for any
information contained in any Report; (c) the Reports are not comprehensive
audits or examinations, and that the Administrative Agent, the Collateral
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 neither the Administrative Agent not the
Collateral Agent undertakes any 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, the Collateral Agent, and any such other
Person preparing a Report harmless from and against, the claims, actions,
proceedings, damages, costs, expenses, and other amounts (including reasonable
attorney fees) incurred by the Administrative Agent, the Collateral 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.

 

96

 

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
Counsel

Fax:  (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

 

(ii)                                  if
to the Administrative Agent, the Issuing Bank or the Swingline Lender, to
Wachovia at:

 

Wachovia Capital Finance

1133 Avenue of the Americas

New York, NY 10036

Attention:                              Talecris
Account Manager

 

(iii)                               if
to the Collateral Agent, to Wells Fargo at:

 

Wells Fargo Foothill, Inc.

2450 Colorado Avenue

 

97

 

Suite 3000
West

Santa Monica, CA 90404

Attention:  Business Finance Division Manager

Tel:  (310) 453-7300

Fax:  (310) 453-7413

(iv)                              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, the
Collateral Agent, the Issuing Bank 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, the
Collateral Agent, the Issuing Bank 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 

 

98

 

by any
Borrower therefrom shall in any event be effective unless the same shall be
permitted by 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 or
issuance of a Letter of Credit shall not be construed as a waiver of any Event
of Default, regardless of whether the Administrative Agent, the Collateral
Agent, any Lender or the Issuing Bank 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 Revolving Commitment of any Lender
without the written consent of such Lender (provided that the
Administrative Agent may make Protective Advances as set forth in Section 2.05),
(ii) reduce or forgive the principal amount of any Loan or LC Disbursement
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 LC
Disbursement, 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 Revolving
Commitment, without the written consent of each Lender directly adversely
affected thereby, (iv) change the definition of “Applicable Percentage” or
change Section 2.19(a) or (b) or Section 2.06(d) in
a manner that would alter the manner in which payments are shared, without the
written consent of each Lender, (v) increase the advance rates set forth
in the definition of Borrowing Base, without the written consent of each
Lender, (vi) 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 (or Lenders of any
Class) 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 (vii) 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, the Collateral Agent, the Issuing
Bank or the Swingline Lender hereunder without the prior written consent of the
Administrative Agent, the Collateral Agent, the Issuing Bank or the Swingline
Lender, as the case may be.

 

(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.

 

99

 

(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 Revolving 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, and cash collateralization
or issuance of a Supporting Letter of Credit with respect to any outstanding
Letter of Credit, (ii) constituting property being sold or disposed of if
the Loan Party disposing of such property (or the Administrative Borrower 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 and the Collateral 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 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) neither
the Administrative Agent nor the Collateral Agent shall be required to execute
any such document on terms which, in the Administrative Agent’s or the
Collateral Agent’s opinion, would expose the Administrative Agent or the
Collateral 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 neither the Administrative Agent nor the Collateral Agent is a
Non-Consenting Lender, the Administrative Borrower may, at its sole cost 

 

100

 

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 (y) 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 such Non-Consenting Lender under Sections 2.16
and 2.18, and (z) an amount, if any, equal to the payment which would
have been due to such Lender on the day of such replacement under Section 2.17
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 the Collateral Agent and
their Affiliates from and after September 1, 2006, including the
reasonable fees, charges and disbursements of outside counsel for the
Administrative Agent and Collateral 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), (ii) all
reasonable, documented out-of-pocket expenses incurred by the Issuing Bank in
connection with the issuance, amendment, renewal or extension of any Letter of
Credit or any demand for payment thereunder, and (iii) all reasonable,
documented expenses incurred by the Administrative Agent, the Collateral Agent,
the Issuing Bank or any Lender, including the out-of-pocket fees, charges and
disbursements of any counsel for the Administrative Agent, the Issuing Bank 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 or Letters of Credit issued hereunder,
including all such expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit. 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
Collateral Agent with respect to each field examination) or at the fee charged
by a third party retained by the Collateral Agent, plus in each case reasonable,
documented travel, lodging, meals and other out of pocket expenses;

 

101

 

(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.

 

All of the foregoing costs and expenses may be charged to the
Borrowers as Revolving Loans or to another Deposit Account, all as described in
Section 2.19(c).

 

(b)                                 Each
Borrower hereby jointly and severally agrees to indemnify the Administrative
Agent, Collateral Agent, Syndication Agent, Documentation Agent, Joint Lead
Arrangers, the Issuing Bank 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 Letter of
Credit or the use of the proceeds therefrom (including any refusal by the
Issuing Bank to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with
the terms of such Letter of Credit) 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 

 

102

 

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, the Collateral Agent, the Issuing Bank or the
Swingline Lender 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, the Collateral Agent, the Issuing Bank or the
Swingline Lender, as the case may be, 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, the Collateral Agent, the Issuing Bank or the Swingline
Lender in its capacity as such.

 

(d)                                 The
relationship between any Loan Party on the one hand and the Lenders, the
Issuing Bank, the Collateral Agent and the Administrative Agent on the other
hand shall be solely that of debtor and creditor. Neither the Administrative
Agent, the Collateral Agent, the Issuing Bank nor any Lender (i) shall
have any fiduciary responsibilities to any Loan Party, or (ii) undertakes
any responsibility to any Loan Party to 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 (including any Affiliate of
the Issuing Bank that issues any Letter of Credit), 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 (including any Affiliate of
the Issuing Bank that issues any Letter of Credit), 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,
the Collateral Agent, the Issuing Bank 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 Revolving
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:

 

103

 

(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;

 

(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, an Approved Fund; and

 

(C)                                the
Issuing Bank.

 

(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 Revolving Commitment or Loans of any Class, the amount of the
Revolving 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 $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 one Class of Revolving 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 

 

104

 

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 2.16, 2.17, 2.18 (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 Revolving Commitment of, and principal amount of the
Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”) and give prompt written notice to the
Borrowers. The entries in the Register shall be conclusive absent manifest
error, and the Borrowers, the Administrative Agent, the Issuing Bank and the
Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrowers, the Issuing Bank 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 2.06, 2.07(d) or
(e), 2.08(b), 2.19(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, the Administrative Agent, the
Issuing Bank or the Swingline Lender, 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 Revolving
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, the Issuing Bank and the other Lenders shall continue to deal solely and
directly with such Lender in 

 

105

 

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 2.16, 2.17 and 2.18 (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 2.18 as though it were
a Lender, and provided further such
Participant agrees to be subject to Section 2.20 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 2.16, 2.17
or 2.18 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 2.18
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 2.18 unless and such Participant agrees, for
the benefit of the Borrowers, to comply with Section 2.18(e) as
though it were a Lender.

 

(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 and issuance of any Letters of Credit, regardless of
any investigation made by any such other party or on its behalf and
notwithstanding that the Administrative Agent, the Issuing Bank 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 

 

106

 

this Agreement
is outstanding and unpaid or any Letter of Credit is outstanding and so long as
the Revolving Commitments have not expired or terminated. The provisions of Sections
2.16, 2.17, 2.18 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, the expiration or termination of the Letters of Credit and the Revolving
Commitments 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 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.

 

107

 

(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, THE ISSUING BANK 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.

 

(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.

 

108

 

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, the Collateral Agent, the Issuing Bank 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, the Collateral Agent, the Issuing Bank 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, the Collateral Agent, the Issuing Bank 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 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, neither the Issuing Bank nor any
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.

 

109

 

SECTION 9.15                                            Disclosure.
Each Borrower and each Lender hereby acknowledges and agrees that the
Administrative Agent, the Collateral Agent, the Syndication Agent, the Co-Documentation
Agents, the Issuing Bank, 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 and the Collateral 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, the Collateral 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, the Collateral
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 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 or the Collateral Agent and receive from the
Administrative Agent or the Collateral 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 

 

110

 

that neither
the Administrative Agent, the Collateral 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, the Collateral
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, the Collateral Agent and other Secured
Parties relying on any instructions of the Administrative Borrower.

 

111

 

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
  Hanson

  
	
   

  	
  Name: John
  Hanson

  
	
   

  	
  Title: Exec
  VP & CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TALECRIS
  PLASMA RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ John
  Hanson

  
	
   

  	
  Name: John
  Hanson

  
	
   

  	
  Title: Exec
  VP & CFO

  

 

 

	
   

  	
  WACHOVIA
  BANK, National Association, individually

  and as Administrative Agent, Issuing Bank and Swingline

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ John
  McCann

  
	
   

  	
  Name: John
  McCann

  
	
   

  	
  Title: Vice
  President

  

 

2

 

	
   

  	
  MORGAN
  STANLEY SENIOR FUNDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ John
  McCann

  
	
   

  	
  Name: John
  McCann

  
	
   

  	
  Title: Vice
  President

  

 

 

	
   

  	
  MORGAN
  STANLEY BANK, as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Eugene
  F. Martin

  
	
   

  	
  Name: Eugene
  F. Martin

  
	
   

  	
  Title:
  Authorized Signatory

  

 

 

	
   

  	
  GOLDMAN
  SACHS CREDIT PARTNERS L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/
  Authorized Signatory

  
	
   

  	
  Name:
  Authorized Signatory

  
	
   

  	
  Title:

  

 

2

 

	
   

  	
  WELLS FARGO
  FOOTHILL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Lan Wong

  
	
   

  	
  Name: Lan Wong

  
	
   

  	
  Title: Vice-President

  

 

 

	
   

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Scott R. Towers

  
	
   

  	
  Name: Scott R. Towers

  
	
   

  	
  Title: Duly Authorized Signatory

  

 

 

COMMITMENT
SCHEDULE

 

[Intentionally Omitted]

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