Document:

Exhibit 10.1

 

 

 

CREDIT AGREEMENT

 

dated as of March 9, 2006

among

 

KANBAY INTERNATIONAL, INC.,

 

VARIOUS FINANCIAL INSTITUTIONS

 

and

 

LASALLE BANK NATIONAL ASSOCIATION,

as Administrative Agent

 

 

 

 

LASALLE BANK NATIONAL ASSOCIATION,

Sole Arranger and Sole Book Runner

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1

  	
   

  	
   

  	
  DEFINITIONS AND INTERPRETATION

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  Other Interpretive Provisions

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 2

  	
   

  	
   

  	
  COMMITMENTS OF THE LENDERS;
  BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES

  	
  20

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Commitments

  	
  20

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1.1

  	
   

  	
  Revolving Commitments

  	
  20

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1.2

  	
   

  	
  Term Commitments

  	
  20

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1.3

  	
   

  	
  L/C Commitment

  	
  20

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Loan Procedures

  	
  20

  
	
   

  	
   

  	
   

  
	
   

  	
  2.2.1

  	
   

  	
  Various Types of Loans

  	
  20

  
	
   

  	
   

  	
   

  
	
   

  	
  2.2.2

  	
   

  	
  Borrowing Procedures for Revolving Loans

  	
  21

  
	
   

  	
   

  	
   

  
	
   

  	
  2.2.3

  	
   

  	
  Conversion and Continuation Procedures

  	
  21

  
	
   

  	
   

  	
   

  
	
   

  	
  2.2.4

  	
   

  	
  Swing Line Facility

  	
  22

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Letter of Credit Procedures

  	
  24

  
	
   

  	
   

  	
   

  
	
   

  	
  2.3.1

  	
   

  	
  L/C Applications

  	
  24

  
	
   

  	
   

  	
   

  
	
   

  	
  2.3.2

  	
   

  	
  Participations in Letters of Credit

  	
  24

  
	
   

  	
   

  	
   

  
	
   

  	
  2.3.3

  	
   

  	
  Reimbursement Obligations

  	
  25

  
	
   

  	
   

  	
   

  
	
   

  	
  2.3.4

  	
   

  	
  Funding by Lenders to Issuing Lender

  	
  25

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  Commitments Several

  	
  26

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Certain Conditions

  	
  26

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  Increase in Revolving Commitment Amount

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 3

  	
   

  	
   

  	
  NOTES EVIDENCING LOANS

  	
  27

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Notes

  	
  27

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Recordkeeping

  	
  27

  
	
   

  	
   

  	
   

  
	
  SECTION 4

  	
   

  	
   

  	
  INTEREST

  	
  28

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Interest Rates

  	
  28

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Interest Payment Dates

  	
  28

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  Setting and Notice of LIBOR Rates

  	
  28

  
	
   

  	
   

  	
   

  
	
  4.4

  	
  Computation of Interest

  	
  28

  
							

 

i

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5

  	
   

  	
   

  	
  FEES

  	
  28

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Non-Use Fee

  	
  28

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Letter of Credit Fees

  	
  29

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  Administrative Agent and Arranger Fees

  	
  29

  
	
   

  	
   

  	
   

  
	
  SECTION 6

  	
   

  	
   

  	
  REDUCTION OR TERMINATION OF THE
  REVOLVING COMMITMENTS; PREPAYMENTS

  	
  29

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Reduction of the Revolving Commitment Amount

  	
  29

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Prepayments

  	
  29

  
	
   

  	
   

  	
   

  
	
   

  	
  6.2.1

  	
   

  	
  Voluntary Prepayments

  	
  30

  
	
   

  	
   

  	
   

  
	
   

  	
  6.2.2

  	
   

  	
  Mandatory Prepayments

  	
  30

  
	
   

  	
   

  	
   

  
	
   

  	
  6.2.3

  	
   

  	
  All Prepayments

  	
  30

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Repayments

  	
  30

  
	
   

  	
   

  	
   

  
	
   

  	
  6.3.1

  	
   

  	
  Revolving Loans

  	
  30

  
	
   

  	
   

  	
   

  
	
   

  	
  6.3.2

  	
   

  	
  Term Loans

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 7

  	
   

  	
   

  	
  MAKING AND PRORATION OF
  PAYMENTS; SETOFF; TAXES

  	
  31

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Making of Payments

  	
  31

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Application of Certain Payments

  	
  31

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  Due Date Extension

  	
  31

  
	
   

  	
   

  	
   

  
	
  7.4

  	
  Setoff

  	
  31

  
	
   

  	
   

  	
   

  
	
  7.5

  	
  Proration of Payments

  	
  32

  
	
   

  	
   

  	
   

  
	
  7.6

  	
  Taxes

  	
  32

  
	
   

  	
   

  	
   

  
	
  SECTION 8

  	
   

  	
   

  	
  INCREASED COSTS; SPECIAL PROVISIONS
  FOR LIBOR LOANS

  	
  34

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Increased Costs

  	
  34

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Basis for Determining Interest Rate Inadequate or
  Unfair

  	
  35

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Changes in Law Rendering LIBOR Loans Unlawful

  	
  35

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  Funding Losses

  	
  35

  
	
   

  	
   

  	
   

  
	
  8.5

  	
  Right of Lenders to Fund through Other Offices

  	
  36

  
	
   

  	
   

  	
   

  
	
  8.6

  	
  Discretion of Lenders as to Manner of Funding

  	
  36

  
	
   

  	
   

  	
   

  
	
  8.7

  	
  Mitigation of Circumstances; Replacement of Lenders

  	
  36

  
	
   

  	
   

  	
   

  
	
  8.8

  	
  Conclusiveness of Statements; Survival of Provisions

  	
  37

  

 

ii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9

  	
   

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
  37

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Organization

  	
  37

  
	
   

  	
   

  	
   

  
	
  9.2

  	
  Authorization; No Conflict

  	
  37

  
	
   

  	
   

  	
   

  
	
  9.3

  	
  Validity and Binding Nature

  	
  37

  
	
   

  	
   

  	
   

  
	
  9.4

  	
  Financial Condition

  	
  37

  
	
   

  	
   

  	
   

  
	
  9.5

  	
  No Material Adverse Change

  	
  38

  
	
   

  	
   

  	
   

  
	
  9.6

  	
  Litigation and Contingent Liabilities

  	
  38

  
	
   

  	
   

  	
   

  
	
  9.7

  	
  Ownership of Properties; Liens

  	
  38

  
	
   

  	
   

  	
   

  
	
  9.8

  	
  Equity Ownership; Subsidiaries

  	
  38

  
	
   

  	
   

  	
   

  
	
  9.9

  	
  Pension Plans

  	
  38

  
	
   

  	
   

  	
   

  
	
  9.10

  	
  Investment Company Act

  	
  39

  
	
   

  	
   

  	
   

  
	
  9.11

  	
  Margin Stock

  	
  39

  
	
   

  	
   

  	
   

  
	
  9.12

  	
  Taxes

  	
  39

  
	
   

  	
   

  	
   

  
	
  9.13

  	
  Solvency, etc

  	
  39

  
	
   

  	
   

  	
   

  
	
  9.14

  	
  Environmental Matters

  	
  40

  
	
   

  	
   

  	
   

  
	
  9.15

  	
  Insurance

  	
  40

  
	
   

  	
   

  	
   

  
	
  9.16

  	
  Real Property

  	
  41

  
	
   

  	
   

  	
   

  
	
  9.17

  	
  Information

  	
  41

  
	
   

  	
   

  	
   

  
	
  9.18

  	
  Intellectual Property

  	
  41

  
	
   

  	
   

  	
   

  
	
  9.19

  	
  Burdensome Obligations

  	
  41

  
	
   

  	
   

  	
   

  
	
  9.20

  	
  Labor Matters

  	
  41

  
	
   

  	
   

  	
   

  
	
  9.21

  	
  No Default

  	
  41

  
	
   

  	
   

  	
   

  
	
  9.22

  	
  Adjoined Acquisition

  	
  41

  
	
   

  	
   

  	
   

  
	
  SECTION 10

  	
   

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
  42

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Reports, Certificates and Other Information

  	
  42

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.1

  	
   

  	
  Annual Report

  	
  42

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.2

  	
   

  	
  Interim Reports

  	
  43

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.3

  	
   

  	
  Compliance Certificates

  	
  43

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.4

  	
   

  	
  Reports to the SEC and to Shareholders

  	
  43

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.5

  	
   

  	
  Notice of Default, Litigation and ERISA Matters

  	
  44

  

 

iii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1.6

  	
   

  	
  Management Reports

  	
  44

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.7

  	
   

  	
  Projections

  	
  44

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.8

  	
   

  	
  Calculation of Asset Coverage Ratio

  	
  45

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1.9

  	
   

  	
  Other Information

  	
  45

  
	
   

  	
   

  	
   

  
	
  10.2

  	
  Books, Records and Inspections

  	
  45

  
	
   

  	
   

  	
   

  
	
  10.3

  	
  Maintenance of Property; Insurance

  	
  46

  
	
   

  	
   

  	
   

  
	
  10.4

  	
  Compliance with Laws; Payment of Taxes and
  Liabilities

  	
  46

  
	
   

  	
   

  	
   

  
	
  10.5

  	
  Maintenance of Existence, etc

  	
  47

  
	
   

  	
   

  	
   

  
	
  10.6

  	
  Use of Proceeds

  	
  47

  
	
   

  	
   

  	
   

  
	
  10.7

  	
  Employee Benefit Plans

  	
  47

  
	
   

  	
   

  	
   

  
	
  10.8

  	
  Environmental Matters

  	
  48

  
	
   

  	
   

  	
   

  
	
  10.9

  	
  Further Assurances

  	
  48

  
	
   

  	
   

  	
   

  
	
  10.10

  	
  Cash Management Services

  	
  48

  
	
   

  	
   

  	
   

  
	
  SECTION 11

  	
   

  	
   

  	
  NEGATIVE COVENANTS

  	
  49

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Debt

  	
  49

  
	
   

  	
   

  	
   

  
	
  11.2

  	
  Liens

  	
  50

  
	
   

  	
   

  	
   

  
	
  11.3

  	
  Restricted Payments

  	
  51

  
	
   

  	
   

  	
   

  
	
  11.4

  	
  Mergers, Consolidations, Sales

  	
  51

  
	
   

  	
   

  	
   

  
	
  11.5

  	
  Restriction of Amendments to Certain Documents

  	
  53

  
	
   

  	
   

  	
   

  
	
  11.6

  	
  Transactions with Affiliates

  	
  53

  
	
   

  	
   

  	
   

  
	
  11.7

  	
  Unconditional Purchase Obligations

  	
  54

  
	
   

  	
   

  	
   

  
	
  11.8

  	
  Inconsistent Agreements

  	
  54

  
	
   

  	
   

  	
   

  
	
  11.9

  	
  Business Activities

  	
  54

  
	
   

  	
   

  	
   

  
	
  11.10

  	
  Investments

  	
  54

  
	
   

  	
   

  	
   

  
	
  11.11

  	
  Financial Covenants

  	
  55

  
	
   

  	
   

  	
   

  
	
   

  	
  11.11.1

  	
   

  	
  Maximum Total Leverage Ratio

  	
  55

  
	
   

  	
   

  	
   

  
	
   

  	
  11.11.2 

  	
   

  	
  Minimum Fixed Charge Coverage Ratio

  	
  55

  
	
   

  	
   

  	
   

  
	
   

  	
  11.11.3 

  	
   

  	
  Minimum Asset Coverage Ratio

  	
  56

  
	
   

  	
   

  	
   

  
	
   

  	
  11.11.4 

  	
   

  	
  Fiscal Year 2006 Capital Expenditures

  	
  56

  
							

 

iv

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 12

  	
   

  	
   

  	
  EFFECTIVENESS; CONDITIONS OF
  LENDING, ETC

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.1

  	
  Initial Credit Extension

  	
  56

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.1

  	
   

  	
  Notes

  	
  56

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.2

  	
   

  	
  Authorization Documents

  	
  56

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.3

  	
   

  	
  Consents, etc

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.4

  	
   

  	
  Letter of Direction

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.5

  	
   

  	
  Guaranty and Collateral Agreement

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.6

  	
   

  	
  Opinions of Counsel

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.7

  	
   

  	
  Insurance

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.8

  	
   

  	
  Payment of Fees

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.9

  	
   

  	
  Solvency Certificate

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.10 

  	
   

  	
  Pro Forma

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.11 

  	
   

  	
  Search Results; Lien Terminations

  	
  57

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.12 

  	
   

  	
  Filings, Registrations and Recordings

  	
  58

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.13 

  	
   

  	
  Closing Certificate, Consents and Permits

  	
  58

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.14 

  	
   

  	
  Financial Statements

  	
  58

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1.15 

  	
   

  	
  Other

  	
  59

  
	
   

  	
   

  	
   

  
	
  12.2

  	
  Conditions

  	
  59

  
	
   

  	
   

  	
   

  
	
   

  	
  12.2.1

  	
   

  	
  Compliance with Warranties, No Default, etc

  	
  59

  
	
   

  	
   

  	
   

  
	
   

  	
  12.2.2

  	
   

  	
  Confirmatory Certificate

  	
  59

  
	
   

  	
   

  	
   

  
	
  SECTION 13

  	
   

  	
   

  	
  EVENTS OF DEFAULT AND THEIR
  EFFECT

  	
  59

  
	
   

  	
   

  	
   

  
	
  13.1

  	
  Events of Default

  	
  59

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.1

  	
   

  	
  Non-Payment of the Loans, etc

  	
  59

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.2

  	
   

  	
  Non-Payment of Other Debt

  	
  59

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.3

  	
   

  	
  Other Material Obligations

  	
  60

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.4

  	
   

  	
  Bankruptcy, Insolvency, etc

  	
  60

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.5

  	
   

  	
  Non-Compliance with Loan Documents

  	
  60

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.6

  	
   

  	
  Representations; Warranties

  	
  60

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.7

  	
   

  	
  Pension Plans

  	
  60

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.8

  	
   

  	
  Judgments

  	
  61

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.9

  	
   

  	
  Invalidity of Collateral Documents, etc

  	
  61

  
										

 

v

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.1.10 

  	
   

  	
  Change of Control

  	
  61

  
	
   

  	
   

  	
   

  
	
   

  	
  13.1.11 

  	
   

  	
  Loss of Customers

  	
  61

  
	
   

  	
   

  	
   

  
	
  13.2

  	
  Effect of Event of Default

  	
  61

  
	
   

  	
   

  	
   

  
	
  SECTION 14

  	
   

  	
   

  	
  THE AGENT

  	
  62

  
	
   

  	
   

  	
   

  
	
  14.1

  	
  Appointment and Authorization

  	
  62

  
	
   

  	
   

  	
   

  
	
  14.2

  	
  Issuing Lender

  	
  62

  
	
   

  	
   

  	
   

  
	
  14.3

  	
  Delegation of Duties

  	
  62

  
	
   

  	
   

  	
   

  
	
  14.4

  	
  Exculpation of Administrative Agent

  	
  62

  
	
   

  	
   

  	
   

  
	
  14.5

  	
  Reliance by Administrative Agent

  	
  63

  
	
   

  	
   

  	
   

  
	
  14.6

  	
  Notice of Default

  	
  63

  
	
   

  	
   

  	
   

  
	
  14.7

  	
  Credit Decision

  	
  63

  
	
   

  	
   

  	
   

  
	
  14.8

  	
  Indemnification

  	
  64

  
	
   

  	
   

  	
   

  
	
  14.9

  	
  Administrative Agent in Individual Capacity

  	
  64

  
	
   

  	
   

  	
   

  
	
  14.10

  	
  Successor Administrative Agent

  	
  65

  
	
   

  	
   

  	
   

  
	
  14.11

  	
  Collateral Matters

  	
  65

  
	
   

  	
   

  	
   

  
	
  14.12

  	
  Administrative Agent May File Proofs of Claim

  	
  65

  
	
   

  	
   

  	
   

  
	
  14.13

  	
  Other Agents; Arrangers and Managers

  	
  66

  
	
   

  	
   

  	
   

  
	
  SECTION 15

  	
   

  	
   

  	
  GENERAL

  	
  66

  
	
   

  	
   

  	
   

  
	
  15.1

  	
  Waiver; Amendments

  	
  66

  
	
   

  	
   

  	
   

  
	
  15.2

  	
  Confirmations

  	
  67

  
	
   

  	
   

  	
   

  
	
  15.3

  	
  Notices

  	
  67

  
	
   

  	
   

  	
   

  
	
  15.4

  	
  Computations

  	
  68

  
	
   

  	
   

  	
   

  
	
  15.5

  	
  Costs, Expenses and Taxes

  	
  68

  
	
   

  	
   

  	
   

  
	
  15.6

  	
  Assignments; Participations

  	
  68

  
	
   

  	
   

  	
   

  
	
   

  	
  15.6.1

  	
   

  	
  Assignments

  	
  68

  
	
   

  	
   

  	
   

  
	
   

  	
  15.6.2

  	
   

  	
  Participations

  	
  69

  
	
   

  	
   

  	
   

  
	
  15.7

  	
  Register

  	
  70

  
	
   

  	
   

  	
   

  
	
  15.8

  	
  GOVERNING LAW

  	
  70

  
	
   

  	
   

  	
   

  
	
  15.9

  	
  Confidentiality

  	
  70

  
	
   

  	
   

  	
   

  
	
  15.10

  	
  Severability

  	
  71

  
							

 

vi

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  15.11

  	
  Nature of Remedies

  	
  71

  
	
   

  	
   

  	
   

  
	
  15.12

  	
  Entire Agreement

  	
  71

  
	
   

  	
   

  	
   

  
	
  15.13

  	
  Counterparts

  	
  71

  
	
   

  	
   

  	
   

  
	
  15.14

  	
  Successors and Assigns

  	
  71

  
	
   

  	
   

  	
   

  
	
  15.15

  	
  Captions

  	
  72

  
	
   

  	
   

  	
   

  
	
  15.16

  	
  Customer Identification - USA Patriot Act Notice

  	
  72

  
	
   

  	
   

  	
   

  
	
  15.17

  	
  INDEMNIFICATION BY THE COMPANY

  	
  72

  
	
   

  	
   

  	
   

  
	
  15.18

  	
  Nonliability of Lenders

  	
  73

  
	
   

  	
   

  	
   

  
	
  15.19

  	
  FORUM SELECTION AND CONSENT TO JURISDICTION

  	
  73

  
	
   

  	
   

  	
   

  
	
  15.20

  	
  WAIVER OF JURY TRIAL

  	
  74

  

 

vii

 

	
  ANNEXES

  
	
   

  
	
  ANNEX A

  	
   

  	
  Lenders and Pro Rata Shares

  
	
  ANNEX B

  	
   

  	
  Addresses for Notices

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  
	
   

  
	
  SCHEDULE 9.6

  	
   

  	
  Litigation and Contingent Liabilities

  
	
  SCHEDULE 9.8

  	
   

  	
  Subsidiaries

  
	
  SCHEDULE 9.15

  	
   

  	
  Insurance

  
	
  SCHEDULE 9.16

  	
   

  	
  Real Property

  
	
  SCHEDULE 9.20

  	
   

  	
  Labor Matters

  
	
  SCHEDULE 11.1

  	
   

  	
  Existing Debt

  
	
  SCHEDULE 11.2

  	
   

  	
  Existing Liens

  
	
  SCHEDULE 11.10

  	
   

  	
  Investments

  
	
  SCHEDULE 12.1

  	
   

  	
  Debt to be Repaid

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  
	
  EXHIBIT A

  	
   

  	
  Form of Note (Section 3.1)

  
	
  EXHIBIT B

  	
   

  	
  Form of Compliance Certificate (Section
  10.1.3)

  
	
  EXHIBIT C

  	
   

  	
  Form of Assignment Agreement (Section
  15.6.1)

  
	
  EXHIBIT D

  	
   

  	
  Form of Notice of Borrowing (Section 2.2.2)

  
	
  EXHIBIT E

  	
   

  	
  Form of Notice of Conversion/Continuation
  (Section 2.2.3)

  
	
  EXHIBIT F

  	
   

  	
  Form of Increase Request (Section 2.6)

  

 

viii

 

CREDIT AGREEMENT

 

THIS CREDIT
AGREEMENT dated as of March 9, 2006 (this “Agreement”) is entered into
among KANBAY INTERNATIONAL, INC., a
Delaware corporation (the “Company”),
the financial institutions that are or may from time to time become parties
hereto (together with their respective successors and assigns, the “Lenders”)
and LASALLE BANK NATIONAL ASSOCIATION (in its individual capacity, “LaSalle”),
as administrative agent for the Lenders.

 

The Lenders
have agreed to make available to the Company term loans and a revolving credit
facility (which includes letters of credit) upon the terms and conditions set
forth herein.

 

In
consideration of the mutual agreements herein contained, the parties hereto
agree as follows:

 

SECTION 1  DEFINITIONS AND INTERPRETATION.

 

1.1  Definitions. When used herein, the following
terms shall have the following meanings:

 

Account Debtor is defined in the Guaranty and
Collateral Agreement.

 

Account is defined in the UCC.

 

Acquired Debt means mortgage Debt or Debt with
respect to Capital Leases of a Person existing at the time such Person became a
Subsidiary or assumed by the Company or a Subsidiary pursuant to an Acquisition
permitted hereunder (and not created or incurred in connection with or in
anticipation of such Acquisition) which is otherwise permitted by the terms of this
Agreement.

 

Acquisition means any transaction or series of
related transactions for the purpose of or resulting, directly or indirectly,
in (a) the acquisition of all or substantially all of the assets of a Person,
or of all or substantially all of any business or division of a Person, (b) the
acquisition of in excess of 50% of the Capital Securities of any Person, or
otherwise causing any Person to become a Subsidiary, or (c) a merger or
consolidation or any other combination with another Person (other than a Person
that is already a Subsidiary).

 

Adjoined means
Adjoined Consulting, Inc., a Delaware corporation.

 

Adjoined Acquisition
means the merger of Adjoined with and into Kanbay Consulting, LLC pursuant to
the Adjoined Acquisition Agreement.

 

Adjoined Acquisition Agreement means the
Merger Agreement dated as of February 13, 2006 among the Company, Kanbay
Consulting, LLC, Adjoined and the “Owners” named therein, including all
schedules, annexes and exhibits thereto.

 

Administrative Agent means LaSalle in its
capacity as administrative agent for the Lenders hereunder and any successor
thereto in such capacity.

 

 

Affected Loan - see Section 8.3.

 

Affiliate of any Person means (a) any other
Person which, directly or indirectly, controls or is controlled by or is under
common control with such Person, (b) any officer or director of such Person and
(c) with respect to any Lender, any entity administered or managed by such
Lender or an Affiliate or investment advisor thereof and which is engaged in
making, purchasing, holding or otherwise investing in commercial loans. A
Person shall be deemed to be “controlled by” any other Person if such Person
possesses, directly or indirectly, power to vote 5% or more of the securities
(on a fully diluted basis) having ordinary voting power for the election of
directors or managers or power to direct or cause the direction of the
management and policies of such Person whether by contract or otherwise. Unless
expressly stated otherwise herein, neither the Administrative Agent nor any
Lender shall be deemed an Affiliate of the Company or any Subsidiary.

 

Agreement - see the Preamble.

 

Applicable Margin means, for any day, the rate
per annum set forth below opposite the level (the “Level”) then in
effect, it being understood that the Applicable Margin for (i) LIBOR Loans
shall be the percentage set forth under the column “LIBOR Margin”,
(ii) Base Rate Loans shall be the percentage set forth under the column
“Base Rate Margin”, (iii) the Non-Use Fee Rate shall be the percentage set
forth under the column “Non-Use Fee Rate” and (iv) the L/C Fee shall be the
percentage set forth under the column “L/C Fee Rate”:

 

	
  Level

  	
   

  	
  Total Leverage Ratio

  	
   

  	
  LIBOR

  Margin

  	
   

  	
  Base Rate

  Margin

  	
   

  	
  Non-Use

  Fee Rate

  	
   

  	
  L/C Fee

  Rate

  	
   

  
	
  I

  	
   

  	
  Less than or equal to 0.75:1

  	
   

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  	
  0.15

  	
  %

  	
  1.00

  	
  %

  
	
  II

  	
   

  	
  Greater than 0.75:1 but less than or equal to 1.25:1

  	
   

  	
  1.25

  	
  %

  	
  0.00

  	
  %

  	
  0.175

  	
  %

  	
  1.25

  	
  %

  
	
  III

  	
   

  	
  Greater than 1.25:1 but less than or equal to 1.75:1

  	
   

  	
  1.50

  	
  %

  	
  0.00

  	
  %

  	
  0.20

  	
  %

  	
  1.50

  	
  %

  
	
  IV

  	
   

  	
  Greater than 1.75:1 but less than or equal to 2.00:1

  	
   

  	
  1.75

  	
  %

  	
  0.00

  	
  %

  	
  0.25

  	
  %

  	
  1.75

  	
  %

  
	
  V

  	
   

  	
  Greater than 2.00:1

  	
   

  	
  2.00

  	
  %

  	
  0.25

  	
  %

  	
  0.30

  	
  %

  	
  2.00

  	
  %

  

 

The LIBOR
Margin, the Base Rate Margin, the Non-Use Fee Rate and the L/C Fee Rate shall
be adjusted, to the extent applicable, on the fifth (5th) Business Day after
the Company provides or is required to provide the annual or quarterly
financial statements and other information pursuant to Section 10.1.1 or
10.1.2, as applicable, and the related Compliance Certificate, pursuant
to Section 10.1.3. Notwithstanding anything contained in this paragraph
to the contrary, (a) if the Company fails to deliver the financial statements
and Compliance Certificate in accordance with the provisions of Section
10.1.1 or 10.1.2 and Section 10.1.3, the LIBOR Margin, the
Base Rate Margin, the Non-Use Fee Rate and the L/C Fee Rate shall be based upon
Level V above beginning on the date such financial statements and Compliance
Certificate were required to be delivered until the fifth (5th) Business Day
after such financial statements and Compliance Certificate are actually
delivered, whereupon the Applicable Margin shall be determined by the then
current Level; and (b) no reduction to any Applicable Margin

 

2

 

shall become effective at any time when an Event of Default or
Unmatured Event of Default has occurred and is continuing.

 

Arranger means LaSalle in its capacity as sole
arranger and sole book runner hereunder.

 

Asset Coverage Ratio means the ratio of (a)
the sum, without duplication, of (i) all cash, Cash Equivalent Investments and
readily marketable securities of the Company and its Subsidiaries (other than
(x) any of the foregoing that is not readily available to the Company due to
legal or contractual restrictions or otherwise and (y) any portion of the
foregoing that is held by Persons that are not Loan Parties and that, after
deducting amounts pursuant to the foregoing clause (x) exceeds
$10,000,000) and (ii) accounts receivable that are not more than 120 days past
the due date thereof according to the original terms of sale (provided that the
foregoing limitation shall not apply to accounts receivable owing by Morgan
Stanley), to (b) the total of (i) the Revolving Outstandings plus (ii)
the aggregate outstanding principal amount of the Term Loans minus (iii) the
Stated Amount of all commercial Letters of Credit minus (iv) at any time during
the Fiscal Quarter ending March 31, 2006, the Stated Amount (but not more than
$4,500,000) of the standby Letters of Credit supporting (or borrowings
hereunder the proceeds of which are used to support) obligations of the Company
and its Subsidiaries under domestic real property leases having lease terms
extending at least two years after the Closing Date (the “Specified LC
Obligations”) minus (v) at any time during the Fiscal Quarter ending June
30, 2006, an amount (but not more than $2,250,000) equal to 50% of the Stated
Amount of the Letters of Credit (or borrowings) supporting the Specified LC
Obligations.

 

Asset Disposition means the sale, lease,
assignment or other transfer for value (each, a “Disposition”) by the
Company or any Subsidiary to any Person (other than to the Company or another
Subsidiary) of any asset or right of the Company or such Subsidiary (including
the loss, destruction or damage of any thereof or any condemnation,
confiscation, requisition, seizure or taking thereof) other than (a) the
Disposition of any asset which is to be replaced if, within 180 days after such
Disposition such asset is in fact replaced, or the proceeds from such
Disposition have been contractually committed to replace such asset, with
another asset performing the same or a similar general function, (b) the sale
or lease of inventory in the ordinary course of business and (c) other
Dispositions in any Fiscal Year the Net Proceeds of which do not in the
aggregate exceed $2,500,000.

 

Assignee - see Section 15.6.1.

 

Assignment Agreement - see Section 15.6.1.

 

Attorney Costs means, with respect to any
Person, all reasonable fees and charges of any counsel to such Person, the
reasonable allocable cost of internal legal services of such Person, all
reasonable disbursements of such internal counsel and all court costs and
similar legal expenses.

 

Bank Product Agreement means an agreement
entered into between any Loan Party (or any other Subsidiary if the obligations
of such Subsidiary thereunder are guaranteed by a Loan Party) and a Lender (or
an Affiliate of a Lender) in connection with any Bank Product.

 

Bank Product Obligation means any obligation,
liability, contingent reimbursement obligation, fee or expense owing by a Loan
Party to a Lender (or an Affiliate of Lender)

 

3

 

pursuant to or evidenced by a Bank Product Agreement, whether direct or
indirect, absolute or contingent, due or to become due or now existing or
hereafter arising, including any amount that a Loan Party is obligated to
reimburse to the Administrative Agent or any Lender (or any Affiliate of a
Lender) as a result of the Administrative Agent or such Lender (or such
Affiliate) purchasing participations or executing indemnities or reimbursement
obligations with respect to any Bank Product provided to any Loan Party
pursuant to any Bank Product Agreement.

 

Bank Product means any service or facility
extended to any Loan Party by a Lender (or an Affiliate of a Lender),
including:  (a) credit cards, (b) credit
card processing services, (c) debit cards, (d) purchase cards, (e) ACH
transactions, (f) cash management, including controlled disbursement, accounts
or services, and (g) Hedging Agreements.

 

Base Rate means at any time the greater of
(a) the Federal Funds Rate plus 0.5% and (b) the Prime Rate.

 

Base Rate Loan means any Loan that bears
interest at or by reference to the Base Rate.

 

Base Rate Margin - see the definition of
Applicable Margin.

 

BSA - see Section 10.4.

 

Business Day means any day on which LaSalle is
open for commercial banking business in Chicago, Illinois and, in the case of a
Business Day that relates to a LIBOR Loan, on which dealings are carried on in
the London interbank eurodollar market.

 

Capital Expenditures means all expenditures
which are or are required to be capitalized and shown on the consolidated
balance sheet of the Company, including expenditures in respect of Capital
Leases, but excluding expenditures made in connection with the replacement,
substitution or restoration of assets to the extent financed (a) from insurance
proceeds (or other similar recoveries) paid on account of the loss of or damage
to the assets being replaced or restored or (b) with awards of compensation
arising from the taking by eminent domain or condemnation of the assets being
replaced.

 

Capital Lease means, with respect to any
Person, any lease of (or other agreement conveying the right to use) any real
or personal property by such Person that is or is required to be accounted for
as a capital lease on the balance sheet of such Person.

 

Capital Securities means, with respect to any
Person, all shares, interests, participations or other equivalents (however
designated, whether voting or non-voting) of such Person’s capital, whether now
outstanding or issued or acquired after the Closing Date, including common
shares, preferred shares, membership interests in a limited liability company,
limited or general partnership interests in a partnership, interests in a
trust, interests in other unincorporated organizations or any other equivalent
of such ownership interest.

 

Cash Collateralize means to deliver (i) cash
collateral to the Administrative Agent, to be held as cash collateral for
outstanding Letters of Credit, pursuant to documentation satisfactory to the
Administrative Agent, or (ii)  a backstop
letter of credit issued by a financial institution acceptable to the Issuing
Lender entitling the Issuing Lender to draw upon such letter of credit in

 

4

 

the event of a draw upon any outstanding Letter of Credit issued by
such Issuing Lender in form and substance acceptable to the Issuing Lender in
its sole discretion and in an amount equal to not less than 105% of the
outstanding face amount of such outstanding Letters of Credit. Derivatives of
such term have corresponding meanings.

 

Cash Equivalent Investment means, at any time,
(a) any evidence of Debt, maturing not more than one year after such time,
issued or guaranteed by the United States Government or any agency thereof, (b)
commercial paper, maturing not more than one year from the date of issue, or
corporate demand notes, in each case (unless issued by a Lender or its holding
company) rated at least A-l by Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc. or P-l by Moody’s Investors
Service, Inc., (c) any certificate of deposit, time deposit or banker’s acceptance,
maturing not more than one year after such time, or any overnight Federal Funds
transaction that is issued or sold by any Lender or its holding company (or by
a commercial banking institution that is a member of the Federal Reserve System
and has a combined capital and surplus and undivided profits of not less than
$500,000,000), (d) any repurchase agreement entered into with any Lender (or
commercial banking institution of the nature referred to in clause (c))
which (i) is secured by a fully perfected security interest in any obligation
of the type described in any of clauses (a) through (c) above and
(ii) has a market value at the time such repurchase agreement is entered into
of not less than 100% of the repurchase obligation of such Lender (or other commercial
banking institution) thereunder and (e) money market accounts or mutual funds
which invest exclusively in assets satisfying the foregoing requirements and
(f) other short term liquid investments approved in writing by the
Administrative Agent.

 

Change of Control means an event or series of
events by which:

 

(a)           any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent
or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act
of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire
(such right, an “option right”), whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, of 35% or more of
the equity securities of the Company entitled to vote for members of the board
of directors or equivalent governing body of the Company on a fully-diluted
basis (and taking into account all such securities that such person or group has
the right to acquire pursuant to any option right);

 

(b)           during any period of 12 consecutive
months, a majority of the members of the board of directors or other equivalent
governing body of the Company cease to be composed of individuals (i) who were members
of that board or equivalent governing body on the first day of such period,
(ii) whose election or nomination to that board or equivalent governing body
was approved by individuals referred to in clause (i) above constituting
at the time of such election or nomination at least a majority of that board or
equivalent governing body or (iii) whose election or nomination to that board
or other equivalent governing body was approved by individuals referred to in clauses
(i) and (ii) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body
(excluding, in the case of both clause

 

5

 

(ii) and clause (iii), any individual
whose initial nomination for, or assumption of office as, a member of that
board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of
one or more directors by any person or group other than a solicitation for the
election of one or more directors by or on behalf of the board of directors);
or

 

(c)           any Person or two or more Persons
acting in concert shall have acquired by contract or otherwise, or shall have
entered into a contract or arrangement that, upon consummation thereof, will
result in its or their acquisition of the power to exercise, directly or
indirectly, a controlling influence over the management or policies of the
Company, or control over the equity securities of the Company entitled to vote
for members of the board of directors or equivalent governing body of the
Company on a fully-diluted basis (and taking into account all such securities
that such Person or group has the right to acquire pursuant to any option
right) representing 35% or more of the combined voting power of such
securities.

 

Closing Date - see Section 12.1.

 

Code means the Internal Revenue Code of 1986.

 

Collateral is defined in the Guaranty and
Collateral Agreement.

 

Collateral Access Agreement means an agreement
in form and substance reasonably satisfactory to the Administrative Agent
pursuant to which a mortgagee or lessor of real property on which Collateral is
stored or otherwise located, or a warehouseman, processor or other bailee of
Inventory or other property owned by any Loan Party, (a) acknowledges the Liens
of the Administrative Agent and waives any Liens held by such Person on such
property and (b) in the case of any such agreement with a mortgagee or lessor,
permits the Administrative Agent reasonable access to and use of such real
property following the occurrence and during the continuance of an Event of
Default to assemble, complete and sell any Collateral stored or otherwise
located thereon.

 

Collateral Documents means, collectively, the
Guaranty and Collateral Agreement, each Mortgage, each Collateral Access
Agreement, each control agreement and any other agreement or instrument
pursuant to which the Company, any Subsidiary or any other Person grants or
purports to grant collateral to the Administrative Agent for the benefit of the
Lenders or otherwise relates to such collateral.

 

Commitment means a Revolving Commitment and/or
a Term Commitment, as the context may require.

 

Company - see the Preamble.

 

Compliance Certificate means a Compliance
Certificate in substantially the form of Exhibit B.

 

Consolidated Net Income means, for any period,
the net income (or loss) of the Company and its Subsidiaries for such period.

 

6

 

Contingent Liability means, with respect to
any Person, each obligation and liability of such Person and all such
obligations and liabilities of such Person incurred pursuant to any agreement,
undertaking or arrangement by which such Person: (a) guarantees, endorses or
otherwise becomes or is contingently liable upon (by direct or indirect
agreement, contingent or otherwise, to provide funds for payment, to supply
funds to, or otherwise to invest in, a debtor, or otherwise to assure a
creditor against loss) the indebtedness, dividend, obligation or other
liability of any other Person in any manner (other than by endorsement of
instruments in the course of collection), including any indebtedness, dividend
or other obligation which may be issued or incurred at some future time; (b)
guarantees the payment of dividends or other distributions upon the Capital
Securities of any other Person; (c) undertakes or agrees (whether contingently
or otherwise): (i) to purchase, repurchase, or otherwise acquire any
indebtedness, obligation or liability of any other Person or any property or
assets constituting security therefor, (ii) to advance or provide funds for the
payment or discharge of any indebtedness, obligation or liability of any other
Person (whether in the form of loans, advances, stock purchases, capital
contributions or otherwise), or to maintain solvency, assets, level of income,
working capital or other financial condition of any other Person, or (iii) to
make payment to any other Person other than for value received; (d) agrees to
lease property or to purchase securities, property or services from such other
Person with the purpose or intent of assuring the owner of such indebtedness or
obligation of the ability of such other Person to make payment of the
indebtedness or obligation; (e) to induce the issuance of, or in connection
with the issuance of, any letter of credit for the benefit of such other
Person; or (f) undertakes or agrees otherwise to assure a creditor against
loss. The amount of any Contingent Liability shall (subject to any limitation
set forth herein) be deemed to be the outstanding principal amount (or maximum
permitted principal amount, if larger) of the indebtedness, obligation or other
liability guaranteed or supported thereby.

 

Controlled Group means all members of a controlled
group of corporations, all members of a controlled group of trades or
businesses (whether or not incorporated) under common control and all members
of an affiliated service group which, together with the Company or any of its
Subsidiaries, are treated as a single employer under Section 414 of the Code or
Section 4001 of ERISA.

 

Debt of any Person means, without duplication,
(a) all obligations of such Person for borrowed money, (b) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments, (c)
all obligations of such Person as lessee under Capital Leases which have been
or should be recorded as liabilities on a balance sheet of such Person, (d) all
obligations of such Person to pay the deferred purchase price of property or
services (excluding trade accounts payable in the ordinary course of business),
(e) all indebtedness secured by a Lien on the property of such Person, whether
or not such indebtedness shall have been assumed by such Person; provided that
if such Person has not assumed or otherwise become liable for such
indebtedness, such indebtedness shall be measured at the fair market value of
such property securing such indebtedness at the time of determination, (f) all
obligations, contingent or otherwise, with respect to the face amount of all
letters of credit (whether or not drawn), bankers’ acceptances and similar
obligations issued for the account of such Person (including the Letters of
Credit), (g) all Hedging Obligations of such Person, (h) all Contingent
Liabilities of such Person in respect of Debt of the types described in the
foregoing clauses (a) through (g) and (i) all Debt of the types
described in the foregoing clauses (a) through (h) of any
partnership of which such Person is a general partner.

 

7

 

Debt to be Repaid means Debt listed on Schedule
12.1.

 

Dollar and the sign “$” mean lawful
money of the United States of America.

 

Domestic Subsidiary means any Subsidiary other
than a Foreign Subsidiary.

 

EBITDA means, for any for any period of four consecutive Fiscal Quarters, Consolidated
Net Income for such period plus, to the extent deducted in determining
such Consolidated Net Income, (a) Interest Expense, (b) income tax expense, (c)
depreciation, (d) amortization, (e) other non-cash charges (including non-cash
compensation payable to officers, directors and employees pursuant to stock
option or similar benefit programs consistent with past practice), but
excluding any such charge to the extent that it represents an accrual or
reserve for a potential cash item in the future, (f) extraordinary non-cash
losses incurred other than in the ordinary course of business and (g) Permitted
Acquisition Addbacks, minus, to the extent included in such consolidated
net income, extraordinary gains realized other than in the ordinary course of
business; provided that the first $5,000,000 of transaction costs and
expenses relating to the Adjoined Acquisition (but only the first $500,000 of
such costs and expenses incurred after the effectiveness of the Adjoined
Acquisition) shall be added back to EBITDA for the relevant periods.

 

Environmental Claims means all claims, however
asserted, by any governmental, regulatory or judicial authority or other Person
alleging potential liability or responsibility for violation of any
Environmental Law, or for release or injury to the environment.

 

Environmental Laws means all present or future
legally enforceable federal, state, local or foreign laws, statutes, common law
duties, rules, regulations, ordinances and codes, together with all legally
enforceable administrative or judicial orders, consent agreements, directed
duties, requests, licenses, authorizations and permits of, and agreements with,
any governmental authority, in each case relating to any matter arising out of
or relating to public health and safety, or pollution or protection of the
environment or workplace, including any of the foregoing relating to the
presence, use, production, generation, handling, transport, treatment, storage,
disposal, distribution, discharge, emission, release, threatened release,
control or cleanup of any Hazardous Substance.

 

ERISA means the Employee Retirement Income
Security Act of 1974.

 

Event of Default means any of the events
described in Section 13.1.

 

Excess Cash Flow means, for any period, the
result of (a) EBITDA for such period, minus (b) the sum, without
duplication, of (i) scheduled repayments of principal of Term Loans made during
such period plus (ii) voluntary prepayments of the Term Loans pursuant
to Section 6.2.1 during such period plus (iii) cash payments made
in such period with respect to Capital Expenditures plus (iv) all income
taxes paid in cash by the Company and its Subsidiaries during such period plus
(v) cash Interest Expense during such period plus (c) any net decrease
in Working Capital during such period minus (d) any net increase in
Working Capital during such period minus (e) cash charges added back to
EBITDA pursuant to clause (g) of or the proviso to the definition
thereof.

 

8

 

Excluded Taxes means taxes based upon, or
measured by, a Lender’s or the Administrative Agent’s (or a branch of a
Lender’s or the Administrative Agent’s) overall net income, overall net receipts,
or overall net profits (including franchise taxes imposed in lieu of such
taxes), but only to the extent such taxes are imposed by a taxing authority (a)
in a jurisdiction in which such Lender or the Administrative Agent is
organized, (b) in a jurisdiction which such Lender’s or the Administrative
Agent’s principal office is located, or (c) in a jurisdiction in which such
Lender’s or the Administrative Agent’s lending office (or branch) in respect of
which payments under this Agreement are made is located.

 

Federal Funds Rate means, for any day, a
fluctuating interest rate equal for each day during such period to the weighted
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers, as published for
such day (or, if such day is not a Business Day, for the next preceding
Business Day) by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day which is a Business Day, the average of the quotations
for such day on such transactions received by the Administrative Agent from
three Federal funds brokers of recognized standing selected by the
Administrative Agent. The Administrative Agent’s determination of such rate
shall be binding and conclusive absent manifest error.

 

Fee Letter means the Fee letter dated February
10, 2006 between the Company and LaSalle.

 

Fiscal Quarter means a fiscal quarter of a
Fiscal Year.

 

Fiscal Year means the fiscal year of the
Company and its Subsidiaries, which period shall be the 12-month period ending
on December 31 of each year. References to a Fiscal Year with a number
corresponding to any calendar year (e.g., “Fiscal Year 2006”) refer to
the Fiscal Year ending on December 31 of such
calendar year.

 

Fixed Charge Coverage Ratio means, for any
period for the Company and its Subsidiaries, the ratio for such period of (1)
EBITDA plus (A) rental expense under Operating Leases minus (B)
all federal, state or other income taxes paid in cash minus (C) Capital
Expenditures to (2) Interest Expense (including imputed interest with
respect to Capital Lease obligations) plus (A) required principal
payments (including Capital Lease obligations) plus (B) rental expense
under Operating Leases; provided that (i) the Fixed Charge Coverage Ratio
shall be calculated as of the last day of each Fiscal Quarter (a “Measurement
Date”) (x) for the Fiscal Quarters ending June 30, 2006, September 30, 2006
and December 31, 2006, based on the period beginning on April 1, 2006 and
ending on such Measurement Date and (y) thereafter, based on the period of four
(4) Fiscal Quarters ending on such Measurement Date and (ii) Capital
Expenditures for each Fiscal Quarter ending June 30, 2006, September 30, 2006
and December 31, 2006 will be deemed to equal the lesser of (x) actual Capital
Expenditures during such Fiscal Quarter and (y) $9,000,000.

 

Foreign Subsidiary means each Subsidiary that
is organized under the laws of any jurisdiction other than, and that is
conducting the majority of its business outside of, the United States or any
political subdivision thereof.

 

9

 

FRB means the Board of Governors of the
Federal Reserve System or any successor thereto.

 

GAAP means generally accepted accounting
principles set forth from time to time in the opinions and pronouncements of
the Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and
authority within the U.S. accounting profession) and the Securities and
Exchange Commission, which are applicable to the circumstances as of the date
of determination.

 

Gazelle Earnout means Adjoined’s deemed
purchase price “earn-out” obligations under the Gazelle Agreement (as defined
in the Adjoined Acquisition Agreement).

 

Group - see Section 2.2.1.

 

Guaranty and Collateral Agreement means the
Guaranty and Collateral Agreement dated as of the date hereof executed and delivered
by the Loan Parties, together with any joinders thereto and any other guaranty
and collateral agreement executed by a Loan Party, in each case in form and
substance satisfactory to the Administrative Agent.

 

Hazardous Substances means (a) any petroleum
or petroleum products, radioactive materials, asbestos in any form that is or
could become friable, urea formaldehyde foam insulation, dielectric fluid
containing levels of polychlorinated biphenyls, radon gas and mold;
(b) any chemicals, materials, pollutant or substances defined as or
included in the definition of “hazardous substances”, “hazardous waste”,
“hazardous materials”, “extremely hazardous substances”, “restricted hazardous
waste”, “toxic substances”, “toxic pollutants”, “contaminants”, “pollutants” or
words of similar import, under any applicable Environmental Law; and
(c) any other chemical, material or substance, the exposure to, or release
of which is prohibited, limited or regulated by any governmental authority or
for which any duty or standard of care is imposed pursuant to, any
Environmental Law.

 

Hedging Agreement means any interest rate,
currency or commodity swap agreement, cap agreement or collar agreement and any
other agreement or arrangement designed to protect a Person against
fluctuations in interest rates, currency exchange rates or commodity prices.

 

Hedging Obligation means, with respect to any
Person, any liability of such Person under any Hedging Agreement.

 

Indemnified Liabilities - see Section 15.16.

 

Interest Expense means for any period the
consolidated interest expense of the Company and its Subsidiaries for such
period (including all imputed interest on Capital Leases).

 

Interest Period means, as to any LIBOR Loan,
the period commencing on the date such Loan is borrowed or continued as, or
converted into, a LIBOR Loan and ending on the date one, two, three or six
months (or such other period of time agreed to by each applicable Lender)
thereafter as selected by the Company pursuant to Section 2.2.2 or 2.2.3,
as the case may be; provided that:

 

10

 

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

 

(b)           any Interest Period that begins on a
day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period shall end on the last Business Day of the
calendar month at the end of such Interest Period;

 

(c)           the Company may not select any
Interest Period for a Revolving Loan that would extend beyond the scheduled
Termination Date;

 

(d)           the Company may not select any
Interest Period for a Term Loan if, after giving effect to such selection, the
aggregate principal amount of all Term Loans having Interest Periods ending
after any date on which an installment of the Term Loans is scheduled to be
repaid would exceed the aggregate principal amount of the Term Loans scheduled
to be outstanding after giving effect to such repayment; and

 

(e)           the Company may not select any
Interest Period longer than one month for any Loan prior to the earlier of (x)
60 days after the Closing Date and (y) the date that the Administrative Agent
notifies the Company that it has completed primary syndication of the Loans and
the Commitments.

 

Inventory is defined in the Guaranty and Collateral
Agreement.

 

Investment means, with respect to any Person,
any investment in another Person, whether by acquisition of any debt or Capital
Security, by making any loan or advance, by becoming obligated with respect to
a Contingent Liability in respect of obligations of such other Person (other
than travel and similar advances to employees in the ordinary course of
business) or by making an Acquisition. The amount of any Investment by any
Person on any date of determination shall be the sum of the acquisition price
of the gross assets acquired by such Person (including the amount of any
liability assumed by such Person in connection with such acquisition to the
extent such liability would be reflected as a liability on a balance sheet of
such Person prepared in accordance with GAAP) plus all additional capital
contributions or purchase price and earnout adjustments (positive or negative)
paid (or credited) in respect thereof, without any adjustments for increases or
decreases in value, or write-ups, write-downs or write-offs with respect to
such Investment minus the amount of all cash returns of principal or capital
thereon, cash dividends thereon or liabilities expressly assumed by another
Person (other than the Company or another Subsidiary of the Company) in
connection with the sale of such Investment. Whenever the term “outstanding” is
used in this Agreement with reference to an Investment, it shall take into
account the matters referred to in the preceding sentence.

 

Issuing Lender means LaSalle, in its capacity
as the issuer of Letters of Credit hereunder, or any Affiliate of LaSalle that
may from time to time issue Letters of Credit, and their successors and assigns
in such capacity.

 

LaSalle - see the Preamble.

 

11

 

L/C Application means, with respect to any
request for the issuance of a Letter of Credit, a letter of credit application
in the form being used by the Issuing Lender at the time of such request for
the type of letter of credit requested.

 

L/C Fee Rate - see the definition of Applicable
Margin.

 

Lender - see the Preamble. References
to the “Lenders” shall include the Issuing Lender; for purposes of
clarification only, to the extent that LaSalle (or any successor Issuing
Lender) may have any rights or obligations in addition to those of the other
Lenders due to its status as Issuing Lender, its status as such will be
specifically referenced. In addition to the foregoing, for the purpose of
identifying the Persons entitled to share in the Collateral and the proceeds
thereof under, and in accordance with the provisions of, this Agreement and the
Collateral Documents, the term “Lender” shall include Affiliates of a Lender
providing a Bank Product.

 

Lender Party - see Section 15.17.

 

Letter of Credit - see Section 2.1.3.

 

LIBOR Loan means any Loan that bears interest
at a rate determined by reference to the LIBOR Rate.

 

LIBOR Margin - see the definition of
Applicable Margin.

 

LIBOR Office means with respect to any Lender
the office or offices of such Lender which shall be making or maintaining the
LIBOR Loans of such Lender hereunder. A LIBOR Office of any Lender may be, at
the option of such Lender, either a domestic or foreign office.

 

LIBOR Rate means, for any Interest Period, a
rate of interest equal to (a) the per annum rate of interest at which Dollar
deposits for a period equal to such Interest Period are offered in the London
interbank eurodollar market at 11:00 A.M. (London time) two Business Days prior
to the first day of such Interest Period, (i) as displayed in the Bloomberg Financial Markets system, or (ii) if the Bloomberg Financial Markets system is not available, as
displayed on the relevant Reuters screen
page, or (iii) if the sources referred to in clauses (i) and (ii)
are not available, as displayed or published by another authoritative source
selected by the Administrative Agent or (iv) if the sources in clauses (i)
through (iii) are not available, as the LIBOR Rate is otherwise
determined by the Administrative Agent in its sole and absolute discretion,
divided by (b) a number determined by subtracting from 1.00 the then stated
maximum reserve percentage for determining reserves to be maintained by member
banks of the Federal Reserve System for Eurocurrency funding or liabilities as defined
in Regulation D (or any successor category of liabilities under Regulation D),
such rate to remain fixed for such Interest Period. The Administrative Agent’s
determination of the LIBOR Rate shall be conclusive, absent manifest error.

 

Lien means, with respect to any Person, any
interest granted by such Person in any real or personal property, asset or
other right owned or being purchased or acquired by such Person (including an
interest in respect of a Capital Lease, but excluding the interest of a lessor
under an Operating Lease) which secures payment or performance of any
obligation and shall include any

 

12

 

mortgage, lien, encumbrance, title retention lien, charge or other
security interest of any kind, whether arising by contract, as a matter of law,
by judicial process or otherwise.

 

Loan means, as the context may require, a
Revolving Loan, a Term Loan and/or a Swing Line Loan.

 

Loan Documents means this Agreement, the
Notes, the Letters of Credit, the Master Letter of Credit Agreement, the L/C
Applications, the Fee Letter, the Collateral Documents and all documents,
instruments and agreements delivered in connection with the foregoing.

 

Loan Party means the Company, each Domestic
Subsidiary (excluding (a) Kanbay Managed Solutions Inc., LogicSpan Acquisition,
Inc. and Gazelle Consulting, Inc. and their respective Subsidiaries so long as
(i) no such Person has active business operations or owns assets with a fair
market value in excess of $100,000 and (ii) all such Persons are dissolved,
merged out of existence or otherwise disposed of not later than December 31,
2006 and (b) Adjoined International, LLC so long as Adjoined International, LLC
has no active business operations and does not own assets other than one share
of capital stock of Adjoined Consulting Limited and other assets with a fair
market value not to exceed $10,000) and any Foreign Subsidiary that is a
partnership owned by the Company or a Domestic Subsidiary or other
“pass-through” entity to the Company or a Domestic Subsidiary for purposes of
the Code.

 

Margin Stock means any “margin stock” as
defined in Regulation U.

 

Master Letter of Credit Agreement means, at
any time, with respect to the issuance of Letters of Credit, a master letter of
credit agreement or reimbursement agreement in the form, if any, being used by
the Issuing Lender at such time.

 

Material Adverse Effect means (a) a material adverse
change in, or a material adverse effect upon, the financial condition, results
of operations or prospects of the Company and its Subsidiaries taken as a
whole, (b) a material impairment of the ability of any Loan Party to perform
any of its obligations under any applicable Loan Document or (c) a material
adverse effect upon any substantial portion of the collateral under the
Collateral Documents or upon the legality, validity, binding effect or
enforceability against any Loan Party of any applicable Loan Document.

 

Material Foreign Subsidiary means, at any
time, any Foreign Subsidiary that, as of the last day of the most recently
completed Fiscal Quarter for which financial results are available, (a) had
more than 5% of the Company’s consolidated assets or (b) generated more than 5%
of the Company’s consolidated revenues for the 12-month period ending on such
last day.

 

Material Subsidiary means, at any time, (a)
any Subsidiary that is a Loan Party and any other Subsidiary that, as of the
last day of the most recently completed Fiscal Quarter for which financial
results are available, (i) had more than 5% of the Company’s consolidated
assets or (ii) generated more than 5% of the Company’s consolidated revenues
for the 12-month period ending on such last day and (b) any other Subsidiary
designated from time to time by the Company as a “Material Subsidiary”; provided
that not more than 10% of the Company’s consolidated assets are owned by, or
more than 10% of the Company’s consolidated revenues as of the last day of the
most recently completed Fiscal Quarter for which financial results are

 

13

 

available were generated by, Subsidiaries that are not Material
Subsidiaries, then the largest of such Subsidiaries (measured by consolidated
assets) shall automatically be deemed to have been designated by the Company as
a “Material Subsidiary”, and such automatic designation shall continue with
respect to other Subsidiaries until such time as the thresholds set forth above
are not exceeded.

 

Mortgage means a mortgage, deed of trust,
leasehold mortgage or similar instrument granting the Administrative Agent a
Lien on real property of any Loan Party.

 

Multiemployer Pension Plan means a
multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which the
Company or any other member of the Controlled Group may have any liability.

 

Net Cash Proceeds means, with respect to any
Asset Disposition, the aggregate cash proceeds (including cash proceeds
received pursuant to policies of insurance or by way of deferred payment of
principal pursuant to a note, installment receivable or otherwise, but only as
and when received) received by the Company or any Subsidiary pursuant to such
Asset Disposition net of (a) the direct costs relating to such sale, transfer
or other disposition (including sales commissions and legal, accounting and
investment banking fees), (b) taxes paid or reasonably estimated by the Company
to be payable as a result thereof (after taking into account any available tax
credits or deductions and any tax sharing arrangements) and (c) amounts
required to be applied to the repayment of any Debt secured by a Lien on the
asset subject to such Asset Disposition (other than the Loans).

 

Non-U.S. Participant - see Section 7.6(d).

 

Non-Use Fee Rate - see the definition of
Applicable Margin.

 

Note means a promissory note substantially in
the form of Exhibit A.

 

Notice of Borrowing - see Section 2.2.2.

 

Notice of Conversion/Continuation - see Section
2.2.3.

 

Obligations means all obligations (monetary
(including post-petition interest, allowed or not) or otherwise) of any Loan
Party under this Agreement and any other Loan Document, including Attorney
Costs and any reimbursement obligations of any Loan Party in respect of Letters
of Credit, all Hedging Obligations permitted hereunder that are owed to a
Lender or an Affiliate of a Lender and all Bank Product Obligations, in each
case howsoever created, arising or evidenced, whether direct or indirect,
absolute or contingent, now or hereafter existing, or due or to become due.

 

OFAC - see Section 10.4.

 

Operating Lease means any lease of (or other
agreement conveying the right to use) any real or personal property by the
Company or any Subsidiary, as lessee, other than a Capital Lease.

 

14

 

PBGC means the Pension Benefit Guaranty
Corporation and any entity succeeding to any or all of its functions under
ERISA.

 

Participant - see Section 15.6.2.

 

Pension Plan means a “pension plan”, as such
term is defined in Section 3(2) of ERISA, which is subject to Title IV of ERISA
or the minimum funding standards of ERISA (other than a Multiemployer Pension
Plan), as to which the Company or any member of the Controlled Group may have
any liability, including any liability by reason of having been a substantial
employer within the meaning of Section 4063 of ERISA at any time during the
preceding five years, or by reason of being deemed to be a contributing sponsor
under Section 4069 of ERISA.

 

Permitted Acquisition Addbacks means, for any
period, (a) the reasonable fees of the Company’s outside accountants,
consultants, counsel and other advisors directly relating to an Acquisition
permitted by Section 11.4 and (b) other reasonable non-recurring cash
expenses approved by the Administrative Agent directly relating to such
Acquisition, in each case to the extent deducted in calculating Consolidated
Net Income for such period.

 

Permitted Lien means a Lien expressly
permitted hereunder pursuant to Section 11.2.

 

Person means any natural person, corporation,
partnership, trust, limited liability company, association, governmental
authority or unit, or any other entity, whether acting in an individual,
fiduciary or other capacity.

 

Prime Rate means, for any day, the rate of
interest in effect for such day as publicly announced from time to time by the
Administrative Agent as its prime rate (whether or not such rate is actually
charged by the Administrative Agent), which is not intended to be the Administrative
Agent’s lowest or most favorable rate of interest at any one time. Any change
in the Prime Rate announced by the Administrative Agent shall take effect at
the opening of business on the day specified in the public announcement of such
change; provided that the Administrative Agent shall not be obligated to
give notice of any change in the Prime Rate.

 

Pro Rata Share means, with respect to any
Lender, the percentage obtained by dividing (i) the sum of such Lender’s
Revolving Commitment (or, after termination of the Revolving Commitments, the
total of the unpaid principal amount of such Lender’s Revolving Loans plus such
Lender’s participation interests in the Stated Amount of all Letters of Credit
and in all Swing Line Loans) plus such Lender’s Term Commitment (or,
after the making of the Term Loans, the unpaid principal amount of such
Lender’s Term Loan) by (ii) the sum of the Revolving Commitment Amount (or,
after termination of the Revolving Commitments, the Revolving Outstandings) plus
the Term Commitment Amount (or, after the making of the Term Loans, the unpaid
principal amount of all Term Loans).

 

Refunded Swing Line Loan - see Section
2.2.4(c).

 

Regulation D means Regulation D of the
FRB.

 

Regulation U means Regulation U of the FRB.

 

15

 

Replacement Lender - see Section 8.7(b).

 

Reportable Event means a reportable event as
defined in Section 4043 of ERISA and the regulations issued thereunder as to
which the PBGC has not waived the notification requirement of Section 4043(a),
or the failure of a Pension Plan to meet the minimum funding standards of
Section 412 of the Code (without regard to whether the Pension Plan is a plan
described in Section 4021(a)(2) of ERISA) or under Section 302 of ERISA.

 

Required Lenders means, at any time, Lenders
with Pro Rata Shares exceeding 50%.

 

Revolving Commitment means, as to any Lender,
such Lender’s commitment to make Revolving Loans, and to issue or participate
in Letters of Credit and to participate in Swing Line Loans, under this
Agreement. The amount of the Revolving Commitment of each Lender as of the date
of the execution and delivery of this Agreement is set forth across from such
Lender’s name on Annex A.

 

Revolving Commitment Amount means $75,000,000,
as increased from time to time pursuant to Section 2.6 and as reduced
from time to time pursuant to Section 6.1.

 

Revolving Loan - see Section 2.1.1.

 

Revolving Percentage means, with respect to
any Lender, (a) prior to termination of the Revolving Commitments, the
percentage obtained by dividing (i) such Lender’s Revolving Commitment by (ii)
the Revolving Commitment Amount; and (b) thereafter, the percentage obtained by
dividing (i) the total of the unpaid principal amount of such Lender’s
Revolving Loans plus such Lender’s participation interests in the Stated Amount
of all Letters of Credit and in all Swing Line Loans by (ii) the Revolving
Outstandings.

 

Revolving Outstandings means, at any time, the
sum of (a) the aggregate principal amount of all outstanding Revolving Loans
and Swing Line Loans plus (b) the Stated Amount of all Letters of Credit.

 

SEC means the Securities and Exchange
Commission or any other governmental authority succeeding to any of the
principal functions thereof.

 

Senior Officer means, with respect to any
Person, any of the chief executive officer, the chief financial officer, the
general counsel or the treasurer of such Person.

 

Stated Amount means, with respect to any
Letter of Credit at any date of determination, (a) the maximum aggregate amount
available for drawing thereunder under any and all circumstances plus (b) the
aggregate amount of all unreimbursed payments and disbursements under such
Letter of Credit.

 

Subsidiary means, with respect to any Person,
a corporation, partnership, limited liability company or other entity of which
such Person owns, directly or indirectly, such number of outstanding Capital
Securities as have more than 50% of the ordinary voting power for the election
of directors or other managers of such corporation, partnership, limited
liability

 

16

 

company or other entity. Unless the context otherwise requires, each
reference to a Subsidiary herein shall be a reference to a Subsidiary of the
Company.

 

Swing Line Amount means the lesser of (a)
$7,500,000 and (b) the Revolving Commitment Amount. The Swing Line Amount is a
subset of the Revolving Commitment Amount and does not provide additional
availability hereunder.

 

Swing Line Lender means LaSalle.

 

Swing Line Loan - see Section 2.2.4.

 

Taxes means any and all present and future
taxes, duties, levies, imposts, deductions, assessments, charges or
withholdings and any and all liabilities (including interest and penalties and
other additions to taxes) with respect to the foregoing, but excluding Excluded
Taxes.

 

Term Commitment means, as to any Lender, such
Lender’s obligation to make a Term Loan pursuant to Section 2.1.2.

 

Term Commitment Amount means $50,000,000.

 

Term Loan - see Section 2.1.2.

 

Term Percentage means, with respect to any
Lender, (x) prior to the making of the Term Loans, the percentage obtained by
dividing (i) such Lender’s Term Commitment by (ii) the Term Commitment Amount;
and (y)  thereafter, the percentage obtained by dividing (i) the unpaid
principal amount of such Lender’s Term Loan by (ii) the unpaid principal
amount of all Term Loans.

 

Termination Date means the earlier to occur of
(a) March 9, 2011 or (b) such other date on which the Revolving Commitments
terminate pursuant to Section 6 or Section 13.

 

Termination Event means, with respect to a
Pension Plan that is subject to Title IV of ERISA, (a) a Reportable Event, (b)
the withdrawal of Company or any other member of the Controlled Group from such
Pension Plan during a plan year in which Company or any other member of the
Controlled Group was a “substantial employer” as defined in Section 4001(a)(2)
of ERISA or was deemed such under Section 4068(f) of ERISA, (c) the termination
of such Pension Plan, the filing of a notice of intent to terminate the Pension
Plan or the treatment of an amendment of such Pension Plan as a termination
under Section 4041 of ERISA, (d) the institution by the PBGC of proceedings to
terminate such Pension Plan or (e) any event or condition that might constitute
grounds under Section 4042 of ERISA for the termination of, or appointment of a
trustee to administer, such Pension Plan.

 

Total Debt means all Debt of the Company and
its Subsidiaries, determined on a consolidated basis, excluding (i) Debt of the
Company to Subsidiaries, (ii) Debt of Subsidiaries to the Company or to other
Subsidiaries, (iii) Hedging Obligations, (iv) undrawn amounts under commercial
letters of credit and (v) Contingent Liabilities (other than (x) Contingent
Liabilities under standby letters of credit and (y) guaranties of (A) Debt of
the types described in clauses (a)

 

17

 

through (e) of the definition of Debt or (B) Contingent
Liabilities with respect to such types of Debt).

 

Total Leverage Ratio means, as of the last day
of any Fiscal Quarter, the ratio of Total Debt on such day to EBITDA for
the four Fiscal Quarters ending on such day; provided that the Total
Leverage Ratio will be calculated (i) for the Fiscal Quarter ending March 31,
2006, based on pro forma EBITDA (assuming the Adjoined Acquisition occurred on
the first day of such period) and (ii) for the Fiscal Quarters ending June 30,
2006, September 30, 2006 and December 31, 2006, based on annualized EBITDA for
the three-, six- and nine-month periods, respectively, ending on such dates.

 

Total Plan Liability means, at any time, the
present value of all vested and unvested accrued benefits under all Pension
Plans, determined as of the then most recent valuation date for each Pension
Plan, using PBGC actuarial assumptions for single employer plan terminations.

 

Type - see Section 2.2.1.

 

UCC is defined in the Guaranty and Collateral
Agreement.

 

Unfunded Liability means the amount (if any)
by which the present value of all vested and unvested accrued benefits under
all Pension Plans exceeds the fair market value of all assets allocable to
those benefits, all determined as of the then most recent valuation date for
each Pension Plan, using PBGC actuarial assumptions for single employer plan
terminations.

 

Unmatured Event of Default means any event
that, if it continues uncured, will, with lapse of time or notice or both,
constitute an Event of Default.

 

Withholding Certificate - see Section
7.6(d).

 

Wholly-Owned Subsidiary means, as to any
Person, a Subsidiary all of the Capital Securities of which (except directors’
qualifying Capital Securities or similar de minimis issuances of capital stock
to the extent necessary to comply with requirements of law) are at the time
directly or indirectly owned by such Person and/or another Wholly-Owned
Subsidiary of such Person.

 

Working Capital means the remainder of (a) the
consolidated current assets of the Company and its Subsidiaries minus (b) the
consolidated current liabilities of the Company and its Subsidiaries.

 

1.2  Other Interpretive Provisions.
(a)  The meanings of defined terms are
equally applicable to the singular and plural forms of the defined terms.

 

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

 

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

 

18

 

(d)           In the computation of periods of time
from a specified date to a later specified date, the word “from” means “from
and including”; the words “to” and “until” each mean “to but excluding”, and
the word “through” means “to and including.”

 

(e)           Unless otherwise expressly provided
herein, (i) references to agreements (including this Agreement and the
other Loan Documents) and other contractual instruments shall be deemed to
include all subsequent amendments, restatements, supplements and other
modifications thereto, but only to the extent such amendments, restatements,
supplements and other modifications are not prohibited by the terms of any Loan
Document, (ii) references to any statute or regulation shall be construed
as including all statutory and regulatory provisions amending, replacing,
supplementing or interpreting such statute or regulation and (iii) references
to any time of day shall mean such time in Chicago, Illinois.

 

(f)            This Agreement and the other Loan
Documents may use several different limitations, tests or measurements to
regulate the same or similar matters. All such limitations, tests and
measurements are cumulative and each shall be performed in accordance with its
terms.

 

(g)           All accounting terms not specifically
or completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the audited
financial statements referred to in Section 9.4, except as otherwise
specifically prescribed herein. If at any time any change in GAAP would affect
the computation of any financial ratio or requirement set forth in any Loan
Document, and either the Company or the Required Lenders shall so request, the
Administrative Agent, the Lenders and the Company shall negotiate in good faith
to amend such ratio or requirement to preserve the original intent thereof in
light of such change in GAAP (subject to the approval of the Required Lenders);
provided that, until so amended, (i) such ratio or requirement shall
continue to be computed in accordance with GAAP prior to such change therein
and (ii) the Company shall provide to the Administrative Agent and the Lenders
financial statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between
calculations of such ratio or requirement made before and after giving effect
to such change in GAAP.

 

(h)           For purposes of calculating the Total
Leverage Ratio and the Fixed Charge Coverage Ratio for any period, all
components of such financial covenants (other than Total Debt as of the date of
such calculation) shall include (or exclude, in the case of any disposition),
without duplication, such components attributable to any Person or assets that
have been acquired by the Company or any Subsidiary in an Acquisition permitted
by Section 11.4 (excluding any Acquisition consummated on or prior to
the Closing Date) or disposed of by the Company or any Subsidiary during such
period on a pro forma basis (as determined in good faith by the Company and
certified by a Senior Officer of the Company to the Administrative Agent)
assuming that such Acquisition or disposition occurred on the first day of such
period and treating all income and expense arising in connection with such
Acquisition or disposition (other than the fees, costs and expenses of the
Person acquired in any Acquisition) for the most recently ended four Fiscal
Quarter period for which such income and expense amounts are available as

 

19

 

being earned or
incurred by the Company over the applicable period on a pro forma basis without
giving effect to any cost savings other than Permitted Acquisition Addbacks.

 

(i)            This Agreement and the other Loan
Documents are the result of negotiations among and have been reviewed by
counsel to the Administrative Agent, the Company, the Lenders and the other
parties thereto and are the products of all parties. Accordingly, they shall
not be construed against the Administrative Agent or the Lenders merely because
of the Administrative Agent’s or Lenders’ involvement in their preparation.

 

SECTION
2  COMMITMENTS OF THE LENDERS; BORROWING,
CONVERSION AND LETTER OF CREDIT PROCEDURES.

 

2.1  Commitments. On and subject to the
terms and conditions of this Agreement, each Lender, severally and for itself
alone, agrees to make loans to, and to issue or participate in letters of
credit for the account of, the Company as follows:

 

2.1.1  Revolving Commitments. Each Lender
with a Revolving Commitment agrees to make loans on a revolving basis (“Revolving
Loans”) from time to time from the Closing Date to the Termination Date in
such Lender’s Revolving Percentage of such aggregate amounts as the Company may
request from all applicable Lenders; provided that the Revolving
Outstandings will not at any time exceed the Revolving Commitment Amount.

 

2.1.2  Term Commitments. Each Lender with a
Term Commitment agrees to make a loan to the Company (each such loan, a “Term
Loan”) on the Closing Date in such Lender’s Term Percentage of the Term
Commitment Amount. The Term Commitments of the Lenders shall expire
concurrently with the making of the Term Loans on the Closing Date.

 

2.1.3  L/C Commitment. Subject to Section
2.3.1, the Issuing Lender agrees to issue letters of credit, in each case
containing such terms and conditions as are permitted by this Agreement and are
reasonably satisfactory to the Issuing Lender (each, a “Letter of Credit”),
at the request of and for the account of the Company (or jointly for the
account of the Company and any Subsidiary) from time to time before the
scheduled Termination Date and, as more fully set forth in Section 2.3.2,
each Lender agrees to purchase a participation in each Letter of Credit; provided
that (a) the aggregate Stated Amount of all Letters of Credit shall not at any
time exceed $10,000,000 and (b) the Revolving Outstandings shall not at
any time exceed the Revolving Commitment Amount.

 

2.2  Loan Procedures.

 

2.2.1  Various Types of Loans. Each Revolving
Loan shall be, and each Term Loan may be divided into tranches that are, either
a Base Rate Loan or a LIBOR Loan (each a “Type” of Loan), as the Company
shall specify in the related notice of borrowing or conversion pursuant to Section 2.2.2
or 2.2.3. LIBOR Loans having the same Interest Period which expire
on the same day are sometimes called a “Group” or collectively “Groups”.
Base Rate Loans and LIBOR Loans may be outstanding at the same time, provided
that not more than eight different Groups of LIBOR Loans shall be outstanding
at any one time. All borrowings, conversions and repayments of Loans shall be
effected so that each Lender will have a ratable share (according to

 

20

 

its Revolving
Percentage or Term Percentage, as applicable) of all Types and Groups of
Revolving Loans and Term Loans.

 

2.2.2  Borrowing Procedures for Revolving Loans.
The Company shall give written notice (a “Notice of Borrowing”)
substantially in the form of Exhibit D or telephonic notice (followed
immediately by a Notice of Borrowing) to the Administrative Agent of each
proposed borrowing of Revolving Loans not later than (a) in the case of a
Base Rate borrowing, 11:00 A.M. on the proposed date of such borrowing,
and (b) in the case of a LIBOR borrowing, 11:00 A.M. at least three
Business Days prior to the proposed date of such borrowing. Each such notice
shall be effective upon receipt by the Administrative Agent, shall be
irrevocable and shall specify the date, amount and Type of borrowing and, in
the case of a LIBOR borrowing, the initial Interest Period therefor. Promptly
upon receipt of such notice, the Administrative Agent shall advise each Lender
thereof. Not later than 1:00 P.M. on the date of a proposed borrowing, each
Lender shall provide the Administrative Agent at the office specified by the
Administrative Agent with immediately available funds covering such Lender’s
Revolving Percentage or Term Percentage, as applicable, of such borrowing and,
so long as the Administrative Agent has not received written notice that the
conditions precedent set forth in Section 11 with respect to such
borrowing have not been satisfied, the Administrative Agent shall pay over the
funds received by the Administrative Agent to the Company on the requested
borrowing date. Each borrowing shall be on a Business Day. Each Base Rate
borrowing shall be in an aggregate amount of at least $500,000 and an integral
multiple of $100,000 and each LIBOR borrowing shall be in an aggregate amount
of at least $1,000,000 and an integral multiple of $500,000.

 

2.2.3  Conversion and Continuation Procedures.
(a)  Subject to Section 2.2.1, the
Company may, upon irrevocable written notice to the Administrative Agent in
accordance with clause (b) below:

 

(A)          elect, as of any Business Day, to
convert any Loans (or any part thereof in an aggregate amount of at least
$500,000 and an integral multiple of $100,000) into Loans of the other Type; or

 

(B)           elect, as of the last day of the
applicable Interest Period, to continue any LIBOR Loans having Interest Periods
expiring on such day (or any part thereof in an aggregate amount of at least
$1,000,000 and an integral multiple of $500,000) for a new Interest Period;

 

provided that after
giving effect to any prepayment, conversion or continuation, the aggregate
principal amount of each Group of LIBOR Loans shall be at least $1,000,000 and
an integral multiple of $500,000.

 

(b)           The Company shall give written notice
(a “Notice of Conversion/Continuation”) substantially in the form of Exhibit
E or telephonic notice (followed immediately by a Notice of
Conversion/Continuation) to the Administrative Agent of each proposed
conversion or continuation not later than (i) in the case of conversion into
Base Rate Loans, 11:00 A.M. on the proposed date of such conversion, and (ii)
in the case of conversion into or continuation of LIBOR Loans, 11:00 A.M. at
least three Business Days prior to the proposed date of such conversion or
continuation, specifying in each case:

 

21

 

(A)          the proposed date of conversion or
continuation;

 

(B)           the aggregate amount of Loans to be
converted or continued;

 

(C)           the Type of Loans resulting from the
proposed conversion or continuation; and

 

(D)          in the case of conversion into, or
continuation of, LIBOR Loans, the duration of the requested Interest Period
therefor.

 

(c)           If upon the expiration of any
Interest Period applicable to LIBOR Loans, the Company has failed to select
timely a new Interest Period to be applicable to such LIBOR Loans, the Company
shall be deemed to have elected to convert such LIBOR Loans into Base Rate
Loans effective on the last day of such Interest Period.

 

(d)           The Administrative Agent will
promptly notify each Lender of its receipt of a notice of conversion or
continuation pursuant to this Section 2.2.3 or, if no timely notice is
provided by the Company, of the details of any automatic conversion.

 

(e)           Any conversion of a LIBOR Loan on a
day other than the last day of an Interest Period therefor shall be subject to Section
8.4.

 

2.2.4  Swing Line Facility.

 

(a)           The Administrative Agent shall notify
the Swing Line Lender upon the Administrative Agent’s receipt of any Notice of
Borrowing that requests Base Rate Loans. Subject to the terms and conditions
hereof, the Swing Line Lender may, in its sole discretion from time to time
until the Termination Date, make advances (each, a “Swing Line Loan”) to
the Company in accordance with any such notice, notwithstanding that after
making a requested Swing Line Loan, the Swing Line Lender’s Revolving
Percentage of the Revolving Outstandings may exceed the Swing Line Lender’s
Revolving Percentage of the Revolving Commitment Amount; provided that
(i) the aggregate principal amount of all Swing Line Loans will not at any time
exceed the Swing Line Amount; and (ii) the Revolving Outstandings will not at
any time exceed the Revolving Commitment Amount. The provisions of this Section
2.2.4 shall not relieve any Lender of its obligation to make a Revolving
Loan under Section 2.1.1; provided that if the Swing Line Lender
makes a Swing Line Loan pursuant to a Notice of Borrowing, such Swing Line Loan
shall be in lieu of any Revolving Loans that otherwise may be made by the
Lenders pursuant to such notice. Until the Termination Date, the Company may
from time to time request Swing Line Loans, repay Swing Line Loans and again
request Swing Line Loans under this Section 2.2.4. Each Swing Line Loan
shall be made pursuant to a Notice of Borrowing delivered by the Company to the
Administrative Agent in accordance with Section 2.2.2. Any such notice
must be given no later than 2:00 P.M. on the Business Day of the proposed Swing
Line Loan. Unless the Swing Line Lender has received at least one Business
Day’s prior written notice from the Required Lenders instructing it not to make
a Swing Line Loan, the Swing Line Lender shall, notwithstanding the failure of
any condition precedent set forth in Section 12.2, be entitled to fund
that Swing Line Loan and to have each Lender make Revolving Loans in accordance
with Section 2.2.4(c) or purchase participating interests in accordance
with Section 2.2.4(d). Each Swing Line Loan shall be a Base Rate Loan.
The

 

22

 

Company shall
repay the aggregate outstanding principal amount of each Swing Line Loan upon
demand therefor by the Swing Line Lender.

 

(b)           The entire unpaid balance of each
Swing Line Loan and all other noncontingent Obligations shall be immediately
due and payable in full in immediately available funds on the Termination Date
if not sooner paid in full.

 

(c)           The Swing Line Lender, at any time
and from time to time no less frequently than once in each calendar week, shall
on behalf of the Company (and the Company hereby irrevocably authorizes the
Swing Line Lender to so act on its behalf) request each Lender with a Revolving
Commitment (including the Swing Line Lender) to make a Revolving Loan to the Company
(which shall be a Base Rate Loan) in an amount equal to that Lender’s Revolving
Percentage of the principal amount of all Swing Line Loans (the “Refunded
Swing Line Loan”) outstanding on the date such notice is given. Unless any
of the events described in Section 13.1.4 has occurred (in which event
the procedures of Section 2.2.4(d) shall apply) and regardless of
whether the conditions precedent set forth in this Agreement to the making of a
Revolving Loan are then satisfied, each Lender shall disburse the proceeds of
its Loan to the Administrative Agent, in immediately available funds, prior to
2:00 P.M. on the date that notice is given (provided that such notice is
given by noon on such date). The proceeds of such Revolving Loans shall be
immediately paid to the Swing Line Lender and applied to repay the Refunded
Swing Line Loan.

 

(d)           If, prior to refunding a Swing Line
Loan with a Revolving Loan pursuant to Section 2.2.4(c), any event
described in Section 13.1.4 occurs, then, subject to the provisions of Section
2.2.4(e) below, each Lender shall, on demand by the Swing Line Lender,
purchase from the Swing Line Lender an undivided participation interest in such
Swing Line Loan in an amount equal to its Revolving Percentage of such Swing
Line Loan (and shall promptly transfer to the Swing Line Lender, in immediately
available funds, the amount of its participation interest).

 

(e)           Each Lender’s obligation to make
Revolving Loans in accordance with Section 2.2.4(c) and to purchase
participation interests in accordance with Section 2.2.4(d) shall be
absolute and unconditional and shall not be affected by any circumstance,
including (i) any setoff, counterclaim, recoupment, defense or other right that
such Lender may have against the Swing Line Lender, the Company or any other
Person for any reason whatsoever; (ii) the occurrence or continuance of any
Unmatured Event of Default or Event of Default; (iii) any inability of the
Company to satisfy the conditions precedent to borrowing set forth in this
Agreement at any time or (iv) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing. If and to the
extent any Lender shall not have made such amount available to the
Administrative Agent or the Swing Line Lender, as applicable, by 2:00 P.M. the
amount required pursuant to Sections 2.2.4(c) or 2.2.4(d), as the
case may be, on the Business Day on which such Lender receives notice from the
Administrative Agent of such payment or disbursement (it being understood that
any such notice received after noon on any Business Day shall be deemed to have
been received on the next following Business Day), such Lender agrees to pay
interest on such amount to the Administrative Agent for the Swing Line Lender’s
account forthwith on demand, for each day from the date such amount was to have
been delivered to the Administrative Agent to the date such amount is paid, at
a rate per annum

 

23

 

equal to (a) for
the first three days after demand, the Federal Funds Rate from time to time in
effect and (b) thereafter, the Base Rate from time to time in effect.

 

2.3  Letter of Credit Procedures.

 

2.3.1  L/C Applications. The Company shall
execute and deliver to the Issuing Lender the Master Letter of Credit Agreement
from time to time in effect. The Company shall give notice to the
Administrative Agent and the Issuing Lender of the proposed issuance of each
Letter of Credit on a Business Day which is at least three Business Days (or
such lesser number of days as the Administrative Agent and the Issuing Lender
shall agree in any particular instance in their sole discretion) prior to the
proposed date of issuance of such Letter of Credit. Each such notice shall be
accompanied by an L/C Application, duly executed by the Company and in all
respects satisfactory to the Administrative Agent and the Issuing Lender,
together with such other documentation as the Administrative Agent or the
Issuing Lender may request in support thereof, it being understood that each
L/C Application shall specify, among other things, the date on which the
proposed Letter of Credit is to be issued, the expiration date of such Letter
of Credit (which shall not be later than the scheduled Termination Date (unless
such Letter of Credit is Cash Collateralized)) and whether such Letter of
Credit is to be transferable in whole or in part. Any Letter of Credit
outstanding after the scheduled Termination Date that is Cash Collateralized
for the benefit of the Issuing Lender shall be the sole responsibility of the
Issuing Lender. So long as the Issuing Lender has not received written notice
that the conditions precedent set forth in Section 12 with respect to
the issuance of a Letter of Credit have not been satisfied, the Issuing Lender
shall issue such Letter of Credit on the requested issuance date. The Issuing
Lender shall promptly advise the Administrative Agent of the issuance of each
Letter of Credit and of any amendment thereto, extension thereof or event or
circumstance changing the amount available for drawing thereunder. In the event
of any inconsistency between the terms of the Master Letter of Credit Agreement
or any L/C Application and the terms of this Agreement, the terms of this
Agreement shall control.

 

2.3.2  Participations in Letters of Credit.
Concurrently with the issuance of each Letter of Credit, the Issuing Lender
shall be deemed to have sold and transferred to each Lender with a Revolving
Commitment, and each such Lender shall be deemed irrevocably and
unconditionally to have purchased and received from the Issuing Lender, without
recourse or warranty, an undivided interest and participation, to the extent of
such Lender’s Revolving Percentage, in such Letter of Credit and the Company’s
reimbursement obligations with respect thereto. If the Company does not pay any
reimbursement obligation when due, the Company shall be deemed to have
immediately requested that the Lenders make Revolving Loans that are Base Rate
Loans in an aggregate principal amount equal to such reimbursement obligation.
The Administrative Agent shall promptly notify each Lender of such deemed
request and, without the necessity of compliance with the requirements of Section
2.2.2 or Section 12.2, such Lender shall make available to the
Administrative Agent an amount equal to its Revolving Percentage of the
applicable reimbursement obligation (which shall constitute a Revolving Loan by
such Lender). The proceeds of such Revolving Loans shall be paid over by the
Administrative Agent to the Issuing Lender for the account of the Company in
satisfaction of such reimbursement obligations. For the purposes of this
Agreement, the unparticipated portion of each Letter of Credit shall be deemed
to be the Issuing Lender’s “participation” therein. The Issuing Lender hereby
agrees, upon request of the Administrative Agent or any Lender, to deliver to
the

 

24

 

Administrative
Agent or such Lender a list of all outstanding Letters of Credit issued by the
Issuing Lender, together with such information related thereto as the
Administrative Agent or such Lender may reasonably request.

 

2.3.3  Reimbursement Obligations. (a)  The Company hereby unconditionally and
irrevocably agrees to reimburse the Issuing Lender for each payment or
disbursement made by the Issuing Lender under any Letter of Credit honoring any
demand for payment made by the beneficiary thereunder, in each case on the date
that such payment or disbursement is made. Any amount not reimbursed on the
date of such payment or disbursement shall bear interest from the date of such
payment or disbursement to the date that the Issuing Lender is reimbursed by
the Company therefor, payable on demand, at a rate per annum equal to the Base
Rate from time to time in effect plus the Base Rate Margin from time to
time in effect plus, beginning on the third Business Day after receipt
of notice from the Issuing Lender of such payment or disbursement, 2%. The
Issuing Lender shall notify the Company and the Administrative Agent whenever
any demand for payment is made under any Letter of Credit by the beneficiary
thereunder; provided that the failure of the Issuing Lender to so notify
the Company or the Administrative Agent shall not affect the rights of the
Issuing Lender or the Lenders in any manner whatsoever.

 

(b)           The Company’s reimbursement
obligations hereunder shall be irrevocable and unconditional under all
circumstances, including (a) any lack of validity or enforceability of any
Letter of Credit, this Agreement or any other Loan Document, (b) the existence
of any claim, set-off, defense or other right that the Company or any
Subsidiary may have at any time against a beneficiary named in a Letter of
Credit, any transferee of any Letter of Credit (or any Person for whom any such
transferee may be acting), the Administrative Agent, the Issuing Lender, any
other Lender or any other Person, whether in connection with any Letter of
Credit, this Agreement, any other Loan Document, the transactions contemplated
herein or any unrelated transaction (including any underlying transaction
between the Company or any Subsidiary and the beneficiary named in any Letter
of Credit), (c) the validity, sufficiency or genuineness of any document that
the Issuing Lender has determined complies on its face with the terms of the
applicable Letter of Credit, even if such document should later prove to have
been forged, fraudulent, invalid or insufficient in any respect or any
statement therein shall have been untrue or inaccurate in any respect, or (d)
the surrender or impairment of any security for the performance or observance
of any of the terms hereof. Without limiting the foregoing, no action or
omission whatsoever by the Administrative Agent or any Lender (excluding any
Lender in its capacity as the Issuing Lender) under or in connection with any
Letter of Credit or any related matter shall result in any liability of the
Administrative Agent or any Lender to the Company, or relieve the Company of
any of its obligations hereunder to any such Person.

 

2.3.4  Funding by Lenders to Issuing Lender.
If the Issuing Lender makes any payment or disbursement under any Letter of
Credit and (a) the Company has not reimbursed the Issuing Lender in full for
such payment or disbursement by 11:00 A.M. on the date of such payment or
disbursement, (b) a Revolving Loan may not be made in accordance with Section
2.3.2 or (c) any reimbursement received by the Issuing Lender from the
Company is or must be returned or rescinded upon or during any bankruptcy or
reorganization of the Company or otherwise, each other Lender with a Revolving
Commitment shall be obligated to pay to the Administrative Agent for the
account of the Issuing Lender, in full or partial payment of the purchase price
of its participation in such Letter of Credit, its Revolving Percentage of such
payment or disbursement

 

25

 

(but no such
payment shall diminish the obligations of the Company under Section 2.3.3),
and, upon notice from the Issuing Lender, the Administrative Agent shall
promptly notify each other Lender thereof. Each other Lender irrevocably and
unconditionally agrees to so pay to the Administrative Agent in immediately
available funds for the Issuing Lender’s account the amount of such other
Lender’s Revolving Percentage of such payment or disbursement. If and to the
extent any Lender shall not have made such amount available to the
Administrative Agent by 2:00 P.M. on the Business Day on which such Lender
receives notice from the Administrative Agent of such payment or disbursement
(it being understood that any such notice received after noon on any Business
Day shall be deemed to have been received on the next following Business Day),
such Lender agrees to pay interest on such amount to the Administrative Agent
for the Issuing Lender’s account forthwith on demand, for each day from the
date such amount was to have been delivered to the Administrative Agent to the
date such amount is paid, at a rate per annum equal to (a) for the first three
days after demand, the Federal Funds Rate from time to time in effect and (b)
thereafter, the Base Rate from time to time in effect. Any Lender’s failure to
make available to the Administrative Agent its Revolving Percentage of any such
payment or disbursement shall not relieve any other Lender of its obligation to
make available to the Administrative Agent such other Lender’s Revolving
Percentage of such payment, but no Lender shall be responsible for the failure
of any other Lender to make available to the Administrative Agent such other
Lender’s Revolving Percentage of any such payment or disbursement.

 

2.4  Commitments Several. The failure of
any Lender to make a requested Loan on any date shall not relieve any other
Lender of its obligation (if any) to make a Loan on such date, but no Lender
shall be responsible for the failure of any other Lender to make any Loan to be
made by such other Lender.

 

2.5  Certain Conditions. Except as
otherwise provided in Sections 2.2.4 and 2.3.4 of this Agreement,
no Lender shall have an obligation to make any Loan, or to permit the
continuation of or any conversion into any LIBOR Loan, and the Issuing Lender
shall not have any obligation to issue any Letter of Credit, if an Event of
Default or Unmatured Event of Default exists.

 

2.6  Increase in
Revolving Commitment Amount.

 

(a)           Notwithstanding any other provision
of this Agreement, the Company may, from time to time (but not on more than
three occasions during the term of this Agreement), by means of a letter
delivered to the Administrative Agent substantially in the form of Exhibit F,
request that the Revolving Commitment Amount be increased; provided that
(i) the aggregate amount of all such increases during the term of this
Agreement shall not exceed $25,000,000 and (ii) the amount of any such increase
in the Revolving Commitment Amount shall be an integral multiple of $5,000,000.

 

(b)           Any increase in the Revolving
Commitment Amount may be effected by (i) increasing the Revolving Commitment of
one or more Lenders which have agreed to such increase and/or (ii) subject to paragraph
(d) below, adding one or more commercial banks or other Persons as a party
hereto (each an “Additional Lender”) with a Revolving Commitment in an
amount agreed to by any such Additional Lender.

 

26

 

(c)           Any increase in the Revolving
Commitment Amount pursuant to this Section 2.6 shall be effective three
Business Days (or such other period agreed to by the Administrative Agent, the
Company and, as applicable, each Lender that has agreed to increase its
Revolving Commitment and each Additional Lender) after the date on which the
Administrative Agent has acknowledged receipt of the applicable increase letter
in the form of Annex 1 (in the case of an increase in the Commitment of an
existing Lender) or Annex 2 (in the case of the addition of an Additional
Lender) to Exhibit F.

 

(d)           No Additional Lender shall be added
as a party hereto without the written consent of the Administrative Agent, the
Issuing Lender and the Swing Line Lender (which consents shall not be
unreasonably withheld), and no increase in the Revolving Commitment Amount may
be effected if an Event of Default or an Unmatured Event of Default exists.

 

(e)           The Administrative Agent shall
promptly notify the Company and the Lenders of any increase in the Revolving
Commitment Amount pursuant to this Section 2.6 and of the Revolving
Commitment, Revolving Percentage and Pro Rata Share of each Lender after giving
effect thereto. The parties hereto agree that, notwithstanding any other
provision of this Agreement, the Administrative Agent, the Company, each
Additional Lender and each increasing Lender, as applicable, may make
arrangements to stage the timing of any such increase, or to cause an
Additional Lender or an increasing Lender to temporarily hold risk
participations in the outstanding Revolving Loans of the other Lenders (rather
than fund its Revolving Percentage of all outstanding Revolving Loans
concurrently with the applicable increase), in each case with a view toward
minimizing breakage costs and transfers of funds in connection with any
increase in the Revolving Commitment Amount. The Company acknowledges that if,
as a result of a non-pro-rata increase in the Revolving Commitments, any LIBOR
Loan is prepaid or converted (in whole or in part) on a day other than the last
day of an Interest Period therefor, then such prepayment or conversion shall be
subject to the provisions of Section 8.4.

 

SECTION 3  NOTES
EVIDENCING LOANS.

 

3.1  Notes. The Loans of each Lender shall
be evidenced by a Note, with appropriate insertions, payable to the order of
such Lender in a face principal amount equal to the sum of such Lender’s
Revolving Commitment plus the principal amount of such Lender’s Term Loan.

 

3.2  Recordkeeping. The Administrative
Agent, on behalf of each Lender, shall record in its records, the date and
amount of each Loan made by each Lender, each repayment or conversion thereof
and, in the case of each LIBOR Loan, the dates on which each Interest Period
for such Loan shall begin and end. The aggregate unpaid principal amount so
recorded shall be rebuttably presumptive evidence of the principal amount of
the Loans owing and unpaid. The failure to so record any such amount or any
error in so recording any such amount shall not, however, limit or otherwise
affect the Obligations of the Company hereunder or under any Note to repay the
principal amount of the Loans hereunder, together with all interest accruing
thereon.

 

27

 

SECTION 4 
INTEREST.

 

4.1  Interest Rates. The Company promises
to pay interest on the unpaid principal amount of each Loan for the period
commencing on the date of such Loan until such Loan is paid in full as follows:

 

(a)           at
all times while such Loan is a Base Rate Loan, at a rate per annum equal to the
sum of the Base Rate from time to time in effect plus the Base Rate Margin from
time to time in effect; and

 

(b)           at
all times while such Loan is a LIBOR Loan, at a rate per annum equal to the sum
of the LIBOR Rate applicable to each Interest Period for such Loan plus the
LIBOR Margin from time to time in effect;

 

provided that upon
the request of the Required Lenders, the interest rate applicable to each Loan
shall be increased by 2% (and, in the case of Obligations not bearing interest,
such Obligations shall bear interest at the Base Rate applicable to Revolving
Loans plus 2%) at any time (and so long as) an Event of Default exists; provided,
further, that such increase may thereafter be rescinded by the Required
Lenders, notwithstanding Section 15.1.

 

4.2  Interest Payment Dates. Accrued
interest on each Base Rate Loan shall be payable in arrears on the last day of
each calendar month and at maturity. Accrued interest on each LIBOR Loan shall be
payable on the last day of each Interest Period relating to such Loan (and, in
the case of a LIBOR Loan with an Interest Period in excess of three months, on
the three-month anniversary of the first day of such Interest Period), upon a
prepayment of such Loan, and at maturity. After maturity, and at any time an
Event of Default exists, accrued interest on all Loans shall be payable on
demand.

 

4.3  Setting and Notice of LIBOR Rates. The
applicable LIBOR Rate for each Interest Period shall be determined by the
Administrative Agent, and notice thereof shall be given by the Administrative
Agent promptly to the Company and each Lender. Each determination of the
applicable LIBOR Rate by the Administrative Agent shall be conclusive and
binding upon the parties hereto, in the absence of demonstrable error. The
Administrative Agent shall, upon written request of the Company or any Lender,
deliver to the Company or such Lender a statement showing the computations used
by the Administrative Agent in determining any applicable LIBOR Rate hereunder.

 

4.4  Computation of Interest. Interest
shall be computed for the actual number of days elapsed on the basis of a year
of 360 days; provided that interest on Base Rate Loans based upon the
Prime Rate shall be calculated on the basis of a year of 365 (or, if
applicable, 366) days. The applicable interest rate for each Base Rate Loan
shall change simultaneously with each change in the Base Rate.

 

SECTION 5  FEES.

 

5.1  Non-Use Fee. The Company agrees to pay
to the Administrative Agent for the account of each Lender a non-use fee, for
the period from the Closing Date to the Termination Date, at the Non-Use Fee
Rate in effect from time to time of such Lender’s Revolving

 

28

 

Percentage (as
adjusted from time to time) of the unused portion of the Revolving Commitment
Amount. For purposes of this Section, Swing Line Loans shall not constitute
usage of the Revolving Commitment Amount. Such non-use fee shall be payable in
arrears on the last day of each calendar month and on the Termination Date for
any period then ending for which such non-use fee shall not have previously
been paid. The non-use fee shall be computed for the actual number of days
elapsed on the basis of a year of 360 days.

 

5.2  Letter of Credit Fees. (a)  The Company agrees to pay to the
Administrative Agent for the account of each Lender a letter of credit fee for
each Letter of Credit equal to the L/C Fee Rate in effect from time to time of
such Lender’s Revolving Percentage (as adjusted from time to time) of the
undrawn amount of such Letter of Credit (computed for the actual number of days
elapsed on the basis of a year of 360 days); provided that upon the
request of the Required Lenders, the rate applicable to each Letter of Credit
shall be increased by 2% at any time an Event of Default exists; provided,
further, that such increase may thereafter be rescinded by the Required
Lenders, notwithstanding Section 15.1. Such letter of credit fee shall
be payable in arrears on the last day of each calendar month and on the
Termination Date (or such later date on which such Letter of Credit expires or
is terminated) for the period from the date of the issuance of each Letter of
Credit (or the last day on which the letter of credit fee was paid with respect
thereto) to the date such payment is due or, if earlier, the date on which such
Letter of Credit expired or was terminated.

 

(b)           In addition, with respect to each
Letter of Credit, the Company agrees to pay to the Issuing Lender, for its own
account, (i) such fees and expenses as the Issuing Lender customarily requires
in connection with the issuance, negotiation, processing and/or administration
of letters of credit in similar situations and (ii) a letter of credit fronting
fee in the amount and at the times agreed to by the Company and the Issuing
Lender.

 

5.3  Administrative Agent and Arranger Fees.
The Company agrees to pay to the Administrative Agent and the Arranger such
fees as are mutually agreed to from time to time by such parties, including the
fees set forth in the Fee Letter.

 

SECTION 6 
REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENTS; PREPAYMENTS.

 

6.1  Reduction of the Revolving Commitment
Amount. The Company may from time to time, on at least five Business Days’
prior written notice received by the Administrative Agent (which shall promptly
advise each Lender thereof), permanently reduce the Revolving Commitment Amount
to an amount not less than the Revolving Outstandings. The amount of any such
reduction shall be an integral multiple of $5,000,000. Concurrently with any
reduction of the Revolving Commitment Amount to zero, the Company shall pay all
interest on the Revolving Loans, all non-use fees and all letter of credit fees
and shall Cash Collateralize in full all obligations arising with respect to
the Letters of Credit. All reductions of the Revolving Commitment Amount shall
reduce the Revolving Commitments ratably among the applicable Lenders according
to their respective Revolving Percentages.

 

6.2  Prepayments.

 

29

 

6.2.1  Voluntary Prepayments. The Company may
from time to time prepay Revolving Loans and/or Term Loans in whole or in part;
provided that the Company shall give the Administrative Agent (which
shall promptly advise each applicable Lender) notice thereof not later than
11:00 A.M. on the day of such prepayment (which shall be a Business Day),
specifying the Loans to be prepaid and the date and amount of prepayment. Any
partial prepayment shall be in an amount equal to $1,000,000 or a higher
integral multiple of $500,000.

 

6.2.2  Mandatory Prepayments. The Company
shall prepay Term Loans as follows:

 

(a)           Within 180 days after the receipt by
the Company or any Subsidiary of any Net Cash Proceeds from any Asset
Disposition, the Company shall make a prepayment (rounded down, if necessary,
to the nearest $100,000) in an amount equal to the remainder of (i) 100% of all
Net Cash Proceeds received after the Closing Date minus (ii) all Net
Cash Proceeds previously applied to prepay Term Loans pursuant to this Section
6.2.2(a).

 

(b)           Within 15 days after the delivery of
the financial statements referred to in Section 10.1.1 for any Fiscal
Year (commencing with the financial statements delivered for Fiscal Year 2006),
if such financial statements disclose that the Total Leverage Ratio is greater
than 2.00:1 as of the last day of such Fiscal Year, then the Company shall make
a prepayment in an amount equal to 50% of Excess Cash Flow for such Fiscal
Year.

 

6.2.3  All Prepayments. Any partial
prepayment of a Group of LIBOR Loans shall be subject to the proviso to Section
2.2.3(a). Any prepayment of a LIBOR Loan on a day other than the last day
of an Interest Period therefor shall include interest on the principal amount
being repaid and shall be subject to Section 8.4. All prepayments of
Term Loans shall be applied pro rata to the Term Loans of the Lenders according
to their respective Term Percentages and to the remaining installments of the
Term Loans (a) in the case of a voluntary prepayment, in the direct order of
the maturity of such installments and (b) in the case of a mandatory
prepayment, pro rata to such remaining installments. Except as otherwise
provided by this Agreement, all prepayments shall be applied to such Loans as
the Company shall specify.

 

6.3  Repayments.

 

6.3.1  Revolving Loans. The Revolving Loans
of each Lender shall be paid in full and the Revolving Commitments shall
terminate on the Termination Date.

 

6.3.2  Term Loans. The Term Loan of each
Lender shall be paid in installments equal to such Lender’s Term Percentage of
the aggregate principal amount of the installments of the Term Loans as
follows:

 

	
  Payment Date

  	
   

  	
  Amount

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
  September 30, 2006

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
  December 31, 2006

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
  March 31, 2007

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  September 30, 2007

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  2,500,000

  	
   

  

 

30

 

	
  March 31, 2008

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  September 30, 2008

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  March 31, 2009

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  September 30, 2009

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  December 31, 2009

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  March 31, 2010

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  June 30, 2010

  	
   

  	
  $

  	
  3,750,000

  	
   

  
	
  September 30, 2010

  	
   

  	
  $

  	
  3,750,000

  	
   

  
	
  December 31, 2010

  	
   

  	
  $

  	
  3,750,000

  	
   

  
	
  March 9, 2011

  	
   

  	
  $

  	
  3,750,000

  	
   

  

 

SECTION 7 
MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES.

 

7.1  Making of Payments. All payments of
principal of or interest on the Notes, and of all fees, shall be made by the
Company to the Administrative Agent in immediately available funds at the
office specified by the Administrative Agent not later than noon on the date
due; and funds received after that hour shall be deemed to have been received
by the Administrative Agent on the following Business Day. The Administrative
Agent shall promptly remit to each Lender its share of all such payments
received in collected funds by the Administrative Agent for the account of such
Lender. All payments under Section 8.1 shall be made by the Company
directly to the Lender entitled thereto without setoff, counterclaim or other
defense.

 

7.2  Application of Certain Payments. So
long as no Event of Default has occurred and is continuing, (a) payments
matching specific scheduled payments then due shall be applied to those
scheduled payments and (b) voluntary and mandatory prepayments shall be applied
as set forth in Sections 6.2 and 6.3. After the occurrence and
during the continuance of an Event of Default, all amounts collected or
received by the Administrative Agent or any Lender as proceeds from the sale
of, or other realization upon, all or any part of the Collateral shall be
applied as the Administrative Agent shall determine in its discretion.
Concurrently with each remittance to any Lender of its share of any such
payment, the Administrative Agent shall advise such Lender as to the
application of such payment.

 

7.3  Due Date Extension. If any payment of
principal or interest with respect to any of the Loans, or of any fees, falls
due on a day which is not a Business Day, then such due date shall be extended
to the immediately following Business Day (unless, in the case of a LIBOR Loan,
such immediately following Business Day is the first Business Day of a calendar
month, in which case such due date shall be the immediately preceding Business
Day) and, in the case of principal, additional interest shall accrue and be
payable for the period of any such extension.

 

7.4  Setoff. The Company agrees that at any
time any Event of Default under Section 13.1.1 or 13.1.4 exists,
the Administrative Agent and each Lender may apply to the payment of any
Obligations of the Company hereunder, whether or not then due, any and all
balances, credits, deposits, accounts or moneys of the Company then or
thereafter with the Administrative Agent or such Lender.

 

31

 

7.5  Proration of Payments. If any Lender
shall obtain any payment or other recovery (whether voluntary, involuntary, by
application of offset or otherwise, on account of (a) principal of or interest
on any Loan, but excluding (i) any payment pursuant to Section 8.7 or 15.6,
(ii) any payment to the Swing Line Lender with respect to a Swing Line Loan and
(iii) payments of interest on any Affected Loan) or (b) its participation in
any Letter of Credit or Swing Line Loan) in excess of its applicable pro rata
share (according to its Revolving Percentage, Term Percentage or Pro Rata
Share, as applicable) of payments and other recoveries obtained by all Lenders
on account of principal of and interest on the Loans (or such participations)
then held by them, then such Lender shall purchase from the other Lenders such
participations in the Loans (or sub-participations in Letters of Credit and
Swing Line Loans) held by them as shall be necessary to cause such purchasing
Lender to share the excess payment or other recovery ratably with each of them;
provided that if all or any portion of the excess payment or other
recovery is thereafter recovered from such purchasing Lender, the purchase
shall be rescinded and the purchase price restored to the extent of such
recovery.

 

7.6  Taxes.

 

(a)           All payments made by the Company
hereunder or under any Loan Documents shall be made without setoff,
counterclaim, or other defense. To the extent permitted by applicable law, all
payments hereunder or under the Loan Documents (including any payment of
principal, interest, or fees) to, or for the benefit, of any person shall be
made by the Company free and clear of and without deduction or withholding for,
or account of, any Taxes now or hereinafter imposed by any taxing authority.

 

(b)           If the Company makes any payment
hereunder or under any Loan Document in respect of which it is required by
applicable law to deduct or withhold any Taxes, the Company shall increase the
payment hereunder or under any such Loan Document such that after the reduction
for the amount of Taxes withheld (and any taxes withheld or imposed with
respect to the additional payments required under this Section 7.6(b)),
the amount paid to the Lenders or the Administrative Agent equals the amount
that was payable hereunder or under any such Loan Document without regard to
this Section 7.6(b). To the extent the Company withholds any Taxes on
payments hereunder or under any Loan Document, the Company shall pay the full
amount deducted to the relevant taxing authority within the time allowed for
payment under applicable law and shall deliver to the Administrative Agent
within 30 days after it has made payment to such authority a receipt issued by
such authority (or other evidence satisfactory to the Administrative Agent)
evidencing the payment of all amounts so required to be deducted or withheld
from such payment.

 

(c)           If any Lender or the Administrative
Agent is required by law to make any payments of any Taxes on or in relation to
any amounts received or receivable hereunder or under any other Loan Document,
or any Tax is assessed against a Lender or the Administrative Agent with
respect to amounts received or receivable hereunder or under any other Loan
Document, the Company will indemnify such person against (i) such Tax (and any
reasonable counsel fees and expenses associated with such Tax) and (ii) any
taxes imposed as a result of the receipt of the payment under this Section
7.6(c). A certificate prepared in good faith as to the amount of such
payment by such Lender or the Administrative Agent shall, absent manifest
error, be final, conclusive, and binding on all parties.

 

32

 

(d)           (i)            To
the extent permitted by applicable law, each Lender that is not a United States
person within the meaning of Code Section 7701(a)(30) (a “Non-U.S.
Participant”) shall deliver to the Company and the Administrative Agent on
or prior to the Closing Date (or in the case of a Lender that is an Assignee,
on the date of such assignment to such Lender) two accurate and complete
original signed copies of IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor
or other applicable form prescribed by the IRS) certifying to such Lender’s
entitlement to a complete exemption from, or a reduced rate in, United States
withholding tax on interest payments to be made hereunder or any Loan. If a
Lender that is a Non-U.S. Participant is claiming a complete exemption from
withholding on interest pursuant to Code Sections 871(h) or 881(c), the Lender
shall deliver (along with two accurate and complete original signed copies of
IRS Form W-8BEN) a certificate in form and substance reasonably acceptable to
the Administrative Agent (any such certificate, a “Withholding Certificate”).
In addition, each Lender that is a Non-U.S. Participant agrees that from time
to time after the Closing Date, (or in the case of a Lender that is an
Assignee, after the date of the assignment to such Lender), when a lapse in
time (or change in circumstances occurs) renders the prior certificates
hereunder obsolete or inaccurate in any material respect, such Lender shall, to
the extent permitted under applicable law, deliver to the Company and the
Administrative Agent two new and accurate and complete original signed copies
of an IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or other applicable
forms prescribed by the IRS), and if applicable, a new Withholding Certificate,
to confirm or establish the entitlement of such Lender or the Administrative
Agent to an exemption from, or reduction in, United States withholding tax on
interest payments to be made hereunder or any Loan.

 

(ii)           Each Lender that is not a Non-U.S.
Participant (other than any such Lender which is taxed as a corporation for
U.S. federal income tax purposes) shall provide two properly completed and duly
executed copies of IRS Form W-9 (or any successor or other applicable form) to
the Company and the Administrative Agent certifying that such Lender is exempt
from United States backup withholding tax. To the extent that a form provided
pursuant to this Section 7.6(d)(ii) is rendered obsolete or inaccurate
in any material respects as result of change in circumstances with respect to
the status of a Lender, such Lender shall, to the extent permitted by
applicable law, deliver to the Company and the Administrative Agent revised
forms necessary to confirm or establish the entitlement to such Lender’s or
Agent’s exemption from United States backup withholding tax.

 

(iii)          The Company shall not be required to
pay additional amounts to a Lender, or indemnify any Lender, under this Section
7.6 to the extent that such obligations would not have arisen but for the
failure of such Lender to comply with Section 7.6(d).

 

(iv)          Each Lender agrees to indemnify the
Administrative Agent and hold the Administrative Agent harmless for the full
amount of any and all present or future Taxes and related liabilities
(including penalties, interest, additions to tax and expenses, and any Taxes
imposed by any jurisdiction on amounts payable to the Administrative Agent
under this Section 7.6) which are imposed on or with respect to
principal, interest or fees payable to such Lender hereunder and which are not
paid by the Company pursuant to this Section 7.6, whether or not such
Taxes or related liabilities were correctly or legally asserted. This
indemnification shall be made within 30 days from the date the Administrative
Agent makes written demand therefor.

 

33

 

SECTION 8 
INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS.

 

8.1  Increased Costs. (a)  If, after the date hereof, the adoption of,
or any change in, any applicable law, rule or regulation, or any change in the
interpretation or administration of any applicable law, rule or regulation by
any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender with any
request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency: 
(i) shall impose, modify or deem applicable any reserve (including any
reserve imposed by the FRB, but excluding any reserve included in the
determination of the LIBOR Rate pursuant to Section 4), special deposit
or similar requirement against assets of, deposits with or for the account of,
or credit extended by any Lender; or (ii) shall impose on any Lender any other
condition affecting its LIBOR Loans, its Note or its obligation to make LIBOR
Loans; and the result of anything described in clauses (i) and (ii) above is to
increase the cost to (or to impose a cost on) such Lender (or any LIBOR Office of
such Lender) of making or maintaining any LIBOR Loan, or to reduce the amount
of any sum received or receivable by such Lender (or its LIBOR Office) under
this Agreement or under its Note with respect thereto, then upon the Company’s
receipt of demand from such Lender (which demand shall be accompanied by a
statement setting forth the basis for such demand and a calculation of the
amount thereof in reasonable detail, a copy of which shall be furnished to the
Administrative Agent), the Company shall pay directly to such Lender such
additional amount as will compensate such Lender for such increased cost or
such reduction, so long as such amounts have accrued on or after the day which
is 180 days prior to the date on which such Lender first made demand therefor.

 

(b)           If any Lender shall reasonably
determine that any change in, or the adoption or phase-in of, any applicable
law, rule or regulation regarding capital adequacy, or any change in the
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or the compliance by any Lender or any Person controlling such Lender
with any request or directive regarding capital adequacy (whether or not having
the force of law) of any such authority, central bank or comparable agency, has
or would have the effect of reducing the rate of return on such Lender’s or
such controlling Person’s capital as a consequence of such Lender’s obligations
hereunder or under any Letter of Credit to a level below that which such Lender
or such controlling Person could have achieved but for such change, adoption,
phase-in or compliance (taking into consideration such Lender’s or such
controlling Person’s policies with respect to capital adequacy) by an amount
deemed by such Lender or such controlling Person to be material, then from time
to time, upon the Company’s receipt of demand from such Lender (which demand
shall be accompanied by a statement setting forth the basis for such demand and
a calculation of the amount thereof in reasonable detail, a copy of which shall
be furnished to the Administrative Agent), the Company shall pay to such Lender
such additional amount as will compensate such Lender or such controlling
Person for such reduction so long as such amounts have accrued on or after the
day which is 180 days prior to the date on which such Lender first made demand
therefor.

 

34

 

8.2  Basis for Determining Interest Rate
Inadequate or Unfair. If:

 

(a)           the Administrative Agent reasonably
determines (which determination shall be binding and conclusive on the Company)
that by reason of circumstances affecting the interbank LIBOR market adequate
and reasonable means do not exist for ascertaining the applicable LIBOR Rate;
or

 

(b)           the Required Lenders advise the
Administrative Agent that the LIBOR Rate as determined by the Administrative
Agent will not adequately and fairly reflect the cost to such Lenders of
maintaining or funding LIBOR Loans for such Interest Period (taking into
account any amount to which such Lenders may be entitled under Section 8.1)
or that the making or funding of LIBOR Loans has become impracticable as a
result of an event occurring after the date of this Agreement which in the
opinion of such Lenders materially affects such Loans;

 

then the
Administrative Agent shall promptly notify the other parties thereof and, so
long as such circumstances shall continue, (i) no Lender shall be under any
obligation to make or convert any Base Rate Loans into LIBOR Loans and (ii) on
the last day of the current Interest Period for each LIBOR Loan, such Loan
shall, unless then repaid in full, automatically convert to a Base Rate Loan.

 

8.3  Changes in Law Rendering LIBOR Loans
Unlawful. If any change in, or the adoption of any new, law or regulation,
or any change in the interpretation of any applicable law or regulation by any
governmental or other regulatory body charged with the administration thereof,
should make it (or in the good faith judgment of any Lender cause a substantial
question as to whether it is) unlawful for any Lender to make, maintain or fund
LIBOR Loans, then such Lender shall promptly notify each of the other parties
hereto and, so long as such circumstances shall continue, (a) such Lender shall
have no obligation to make or convert any Base Rate Loan into a LIBOR Loan (but
shall make Base Rate Loans concurrently with the making of or conversion of
Base Rate Loans into LIBOR Loans by the Lenders which are not so affected, in
each case in an amount equal to the amount of LIBOR Loans which would be made
or converted into by such Lender at such time in the absence of such
circumstances) and (b) on the last day of the current Interest Period for each
LIBOR Loan of such Lender (or, in any event, on such earlier date as may be
required by the relevant law, regulation or interpretation), such LIBOR Loan
shall, unless then repaid in full, automatically convert to a Base Rate Loan.
Each Base Rate Loan made by a Lender which, but for the circumstances described
in the foregoing sentence, would be a LIBOR Loan (an “Affected Loan”)
shall remain outstanding for the period corresponding to the Group of LIBOR
Loans of which such Affected Loan would be a part absent such circumstances.

 

8.4  Funding Losses. The Company hereby
agrees that upon receipt of demand from any Lender (which demand shall be
accompanied by a statement setting forth the basis for the amount being
claimed, a copy of which shall be furnished to the Administrative Agent), the
Company will indemnify such Lender against any net loss or expense which such
Lender may sustain or incur (including any net loss or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired
by such Lender to fund or maintain any LIBOR Loan), as reasonably determined by
such Lender, as a result of (a) any payment, prepayment or conversion of any
LIBOR Loan of such Lender on a date other than the last day of an Interest
Period for such Loan (including any conversion pursuant to Section 8.3)
or (b) any failure of the Company to borrow, convert or continue any Loan on a
date specified therefor in a

 

35

 

notice of
borrowing, conversion or continuation pursuant to this Agreement. For this
purpose, all notices to the Administrative Agent pursuant to this Agreement
shall be deemed to be irrevocable.

 

8.5  Right of Lenders to Fund through Other
Offices. Each Lender may, if it so elects, fulfill its commitment as to any
LIBOR Loan by causing a foreign branch or Affiliate of such Lender to make such
Loan; provided that in such event for the purposes of this Agreement
such Loan shall be deemed to have been made by such Lender and the obligation
of the Company to repay such Loan shall nevertheless be to such Lender and
shall be deemed held by it, to the extent of such Loan, for the account of such
branch or Affiliate.

 

8.6  Discretion of Lenders as to Manner of
Funding. Notwithstanding any provision of this Agreement to the contrary,
each Lender shall be entitled to fund and maintain its funding of all or any
part of its Loans in any manner it sees fit, it being understood, however, that
for the purposes of this Agreement all determinations hereunder shall be made
as if such Lender had actually funded and maintained each LIBOR Loan during
each Interest Period for such Loan through the purchase of deposits having a
maturity corresponding to such Interest Period and bearing an interest rate
equal to the LIBOR Rate for such Interest Period.

 

8.7  Mitigation of Circumstances; Replacement
of Lenders. (a)  Each Lender shall
promptly notify the Company and the Administrative Agent of any event of which
it has knowledge which will result in, and will use reasonable commercial
efforts available to it (and not, in such Lender’s sole judgment, otherwise
disadvantageous to such Lender) to mitigate or avoid, (i) any obligation by the
Company to pay any amount pursuant to Sections 7.6 or 8.1 or (ii)
the occurrence of any circumstances described in Sections 8.2 or 8.3
(and, if any Lender has given notice of any such event described in clause
(i) or (ii) above and thereafter such event ceases to exist, such
Lender shall promptly so notify the Company and the Administrative Agent).
Without limiting the foregoing, each Lender will designate a different funding
office if such designation will avoid (or reduce the cost to the Company of)
any event described in clause (i) or (ii) above and such
designation will not, in such Lender’s sole judgment, be otherwise
disadvantageous to such Lender.

 

(b)           If the Company becomes obligated to
pay additional amounts to any Lender pursuant to Sections 7.6 or 8.1,
or any Lender gives notice of the occurrence of any circumstances described in Sections
8.2 or 8.3, the Company may designate another bank which is
acceptable to the Administrative Agent and the Issuing Lender in their
reasonable discretion (such other bank being called a “Replacement Lender”)
to purchase the Loans of such Lender and such Lender’s rights hereunder,
without recourse to or warranty by, or expense to, such Lender, for a purchase
price equal to the outstanding principal amount of the Loans payable to such
Lender plus any accrued but unpaid interest on such Loans and all accrued but
unpaid fees owed to such Lender and any other amounts payable to such Lender
under this Agreement, and to assume all the obligations of such Lender
hereunder, and, upon such purchase and assumption (pursuant to an Assignment
Agreement), such Lender shall no longer be a party hereto or have any rights
hereunder (other than rights with respect to indemnities and similar rights
applicable to such Lender prior to the date of such purchase and assumption)
and shall be relieved from all obligations to the Company hereunder, and the
Replacement Lender shall succeed to the rights and obligations of such Lender
hereunder.

 

36

 

8.8  Conclusiveness of Statements; Survival of
Provisions. Determinations and statements of any Lender pursuant to Sections
8.1, 8.2, 8.3 or 8.4 shall be conclusive absent
demonstrable error. Lenders may use reasonable averaging and attribution
methods in determining compensation under Sections 8.1 and 8.4,
and the provisions of such Sections shall survive repayment of the Obligations,
cancellation of any Notes, expiration or termination of the Letters of Credit
and termination of this Agreement.

 

SECTION 9 
REPRESENTATIONS AND WARRANTIES.

 

To induce the
Administrative Agent and the Lenders to enter into this Agreement and to induce
the Lenders to make Loans and issue and participate in Letters of Credit
hereunder, the Company represents and warrants to the Administrative Agent and
the Lenders that, both before and after giving effect to the Adjoined
Acquisition:

 

9.1  Organization. Each of the Company and
each Subsidiary is validly existing and in good standing under the laws of its
jurisdiction of organization; and each of the Company and each Subsidiary is
duly qualified to do business in each jurisdiction where, because of the nature
of its activities or properties, such qualification is required, except for
such jurisdictions where the failure to so qualify would not have a Material
Adverse Effect.

 

9.2  Authorization; No Conflict. Each Loan
Party is duly authorized to execute and deliver each Loan Document to which it
is a party, the Company is duly authorized to borrow monies hereunder and each
Loan Party is duly authorized to perform its Obligations under each Loan
Document to which it is a party. The execution, delivery and performance by
each Loan Party of each Loan Document to which it is a party, and the
borrowings by the Company hereunder, do not and will not (a) require any
consent or approval of any governmental agency or authority (other than any consent
or approval which has been obtained and is in full force and effect), (b)
conflict with (i) any provision of applicable law, (ii) the charter, by-laws or
other organizational documents of any Loan Party or (iii) any (x) credit
agreement, indenture or similar financing agreement, (y) other material
agreement, instrument or other document or (z) judgment, order or decree, in
each case which is binding upon any Loan Party or any of their respective
properties, or (c) require, or result in, the creation or imposition of any
Lien on any asset of any Loan Party (other than Liens in favor of the
Administrative Agent created pursuant to the Collateral Documents).

 

9.3  Validity and Binding Nature. Each of
this Agreement and each other Loan Document to which any Loan Party is a party
is the legal, valid and binding obligation of such Loan Party, enforceable
against such Loan Party in accordance with its terms, subject to bankruptcy,
insolvency and similar laws affecting the enforceability of creditors’ rights
generally and to general principles of equity.

 

9.4  Financial Condition. The audited
consolidated financial statements of the Company and its Subsidiaries as at
December 31, 2004 and the unaudited consolidated financial statements of the
Company and its Subsidiaries as at September 30, 2005, copies of each of which
have been delivered to each Lender, were prepared in accordance with GAAP
(subject, in the case of such unaudited statements, to the absence of footnotes
and to normal year-end adjustments) and

 

37

 

present fairly in
all material respects the consolidated financial condition of the Company and
its Subsidiaries as at such dates and the results of their operations for the
periods then ended.

 

9.5  No Material Adverse Change. Since
December 31, 2004, there has been no material adverse change in the financial
condition, results of operations or prospects of the Company and its
Subsidiaries taken as a whole.

 

9.6  Litigation and Contingent Liabilities.
No litigation (including derivative actions), arbitration proceeding or
governmental investigation or proceeding is pending or, to the Company’s
knowledge, threatened against the Company or any Subsidiary which would
reasonably be expected to have a Material Adverse Effect, except as set forth
in Schedule 9.6. Other than any liability incident to such litigation or
proceedings, neither the Company nor any Subsidiary has any material contingent
liabilities that (a) would reasonably be expected to have a Material Adverse
Effect or (b) are in existence as of the Closing Date and are not listed on Schedule
9.6 or permitted by Section 11.1.

 

9.7  Ownership of Properties; Liens. Each
of the Company and each Subsidiary owns good and, in the case of real property,
marketable title to or a valid leasehold interest in all of its properties and
assets, real and personal, tangible and intangible, of any nature whatsoever
(including patents, trademarks, trade names, service marks and copyrights),
free and clear of all Liens, charges and claims (including infringement claims
with respect to patents, trademarks, service marks and copyrights) except as
permitted by Section 11.2.

 

9.8  Equity Ownership; Subsidiaries. All
issued and outstanding Capital Securities of each Subsidiary are duly
authorized and validly issued, fully paid, non-assessable, and free and clear
of all Liens other than Liens in favor of the Administrative Agent and inchoate
tax, ERISA and judgment Liens, and such securities were issued in compliance
with all applicable laws concerning the issuance of securities. Schedule 9.8
sets forth the authorized Capital Securities of each Subsidiary as of the
Closing Date. As of the Closing Date, except as set forth on Schedule 9.8,
there are no pre-emptive or other outstanding rights, options, warrants,
conversion rights or other similar agreements or understandings for the
purchase or acquisition of any Capital Securities of any Subsidiary.

 

9.9  Pension Plans. (a)  The Unfunded Liability of all Pension Plans
does not in the aggregate exceed twenty percent of the Total Plan Liability for
all such Pension Plans. Each Pension Plan complies in all material respects
with all applicable requirements of law and regulations. No contribution
failure under Section 412 of the Code, Section 302 of ERISA or the terms of any
Pension Plan has occurred with respect to any Pension Plan, sufficient to give
rise to a Lien under Section 302(f) of ERISA, or otherwise to have a Material
Adverse Effect. There are no pending or, to the knowledge of the Company,
threatened, claims, actions, investigations or lawsuits against any Pension
Plan, any fiduciary of any Pension Plan, or the Company or other any member of
the Controlled Group with respect to a Pension Plan or a Multiemployer Pension
Plan which would reasonably be expected to have a Material Adverse Effect.
Neither the Company nor any other member of the Controlled Group has engaged in
any prohibited transaction (as defined in Section 4975 of the Code or Section
406 of ERISA) in connection with any Pension Plan or Multiemployer Pension Plan
which would subject that Person to any material liability. Within the past five
years, neither the Company nor any other member of the

 

38

 

Controlled Group
has engaged in a transaction which resulted in a Pension Plan with an Unfunded
Liability being transferred out of the Controlled Group, which would reasonably
be expected to have a Material Adverse Effect. No Termination Event has
occurred or is reasonably expected to occur with respect to any Pension Plan,
which would reasonably be expected to have a Material Adverse Effect.

 

(b)           All contributions (if any) have been
made to any Multiemployer Pension Plan that are required to be made by the
Company or any other member of the Controlled Group under the terms of the plan
or of any collective bargaining agreement or by applicable law; neither the
Company nor any other member of the Controlled Group has withdrawn or partially
withdrawn from any Multiemployer Pension Plan, incurred any withdrawal
liability with respect to any such plan or received notice of any claim or
demand for withdrawal liability or partial withdrawal liability from any such
plan, and no condition has occurred which, if continued, would result in a
withdrawal or partial withdrawal from any such plan; and neither the Company
nor any other member of the Controlled Group has received any notice that any
Multiemployer Pension Plan is in reorganization, that increased contributions
may be required to avoid a reduction in plan benefits or the imposition of any
excise tax, that any such plan is or has been funded at a rate less than that
required under Section 412 of the Code, that any such plan is or may be
terminated, or that any such plan is or may become insolvent.

 

9.10  Investment Company Act. Neither the
Company nor any Subsidiary is an “investment company” or a company “controlled”
by an “investment company” or a “subsidiary” of an “investment company,” within
the meaning of the Investment Company Act of 1940.

 

9.11  Margin Stock. The Company is not
engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying Margin Stock.

 

9.12  Taxes. Each of the Company and each
Subsidiary has timely filed all U.S. federal and other material tax returns and
reports required by law to have been filed by it and has paid all taxes and
governmental charges due and payable with respect to such return, except any
such taxes or charges which are being diligently contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with GAAP
shall have been set aside on its books. The Company and its Subsidiaries have
made adequate reserves on their books and records in accordance with GAAP for
all taxes that have accrued but which are not yet due and payable. Neither the
Company nor any Subsidiary has participated in any transaction that relates to
a year of the taxpayer (which is still open under the applicable statute of
limitations) which is a “reportable transaction” within the meaning of Treasury
Regulation Section 1.6011-4(b)(2) (irrespective of the date when the
transaction was entered into).

 

9.13  Solvency, etc. On the Closing Date,
and immediately prior to and after giving effect to the issuance of each Letter
of Credit and each borrowing hereunder and the use of the proceeds thereof,
with respect to each Loan Party, individually, (a) the fair value of its assets
is greater than the amount of its liabilities (including disputed, contingent
and unliquidated liabilities) as such value is established and liabilities
evaluated in accordance with GAAP, (b) the present fair saleable value of its
assets is not less than the amount that will be required to pay the probable
liability on its debts as they become absolute and matured, (c) it is able to
realize upon

 

39

 

its assets and pay
its debts and other liabilities (including disputed, contingent and
unliquidated liabilities) as they mature in the normal course of business, (d)
it does not intend to, and does not believe that it will, incur debts or
liabilities beyond its ability to pay as such debts and liabilities mature and
(e) it is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which its property would constitute
unreasonably small capital.

 

9.14  Environmental Matters. The on-going
operations of the Company and each Subsidiary comply in all respects with all
Environmental Laws, except such non-compliance which would not (if enforced in
accordance with applicable law) reasonably be expected to result, either
individually or in the aggregate, in a Material Adverse Effect. Each of the
Company and each Subsidiary has obtained, and maintained in good standing, all
licenses, permits, authorizations, registrations and other approvals required
under any Environmental Law and required for their respective ordinary course
operations, and for their reasonably anticipated future operations, and each of
the Company and each Subsidiary is in compliance with all terms and conditions
thereof, except where the failure to do so would not reasonably be expected to
result in material liability to the Company or any Subsidiary and would not
reasonably be expected to result, either individually or in the aggregate, in a
Material Adverse Effect. Neither the Company nor any Subsidiary nor any of its
properties or operations is subject to, or reasonably anticipates the issuance
of, any written order from or agreement with any Federal, state or local
governmental authority, nor subject to any judicial or docketed administrative
or other proceeding, respecting any violation of any Environmental Law, any
Environmental Claim or any release of a Hazardous Substance. There are no
Hazardous Substances or other conditions or circumstances existing with respect
to any property, arising from operations prior to the Closing Date, or relating
to any waste disposal, of the Company or any Subsidiary that would reasonably
be expected to result, either individually or in the aggregate, in a Material
Adverse Effect. Neither the Company nor any other Loan Party has any
underground storage tanks that are not properly registered or permitted under
applicable Environmental Laws or that at any time have released, leaked,
disposed of or otherwise discharged Hazardous Substances, and no other
Subsidiary has any underground storage tanks that are not properly registered
or permitted under applicable Environmental Laws or that at any time have
released, leaked, disposed of or otherwise discharged Hazardous Substances
where such failure to be properly registered or permitted or such releases,
leaks, disposals or other discharges would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

9.15  Insurance. Set forth on Schedule
9.15 is a complete and accurate summary of the property and casualty
insurance program of the Company and the other Loan Parties as of the Closing
Date (including the names of all insurers, policy numbers, expiration dates,
amounts and types of coverage, annual premiums, exclusions, deductibles,
self-insured retention, and a description in reasonable detail of any
self-insurance program, retrospective rating plan, fronting arrangement or
other risk assumption arrangement involving the Company or any other Loan
Party). The Company, each Subsidiary and their respective properties are
insured with financially sound and reputable insurance companies which are not
Affiliates of the Company, in such amounts, with such deductibles and covering
such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Company or the
applicable Subsidiary operates.

 

40

 

9.16  Real Property. Set forth on Schedule
9.16 is a complete and accurate list, as of the Closing Date, of the
address of all real property owned or leased by any Loan Party, together with,
in the case of leased real property, the name and mailing address of the lessor
of such property.

 

9.17  Information. All information
heretofore or contemporaneously herewith furnished in writing by the Company or
any Subsidiary to the Administrative Agent or any Lender for purposes of or in
connection with this Agreement and the transactions contemplated hereby is, and
all written information hereafter furnished by or on behalf of the Company or
any Subsidiary to the Administrative Agent or any Lender pursuant hereto or in
connection herewith will be, true and accurate in every material respect on the
date as of which such information is dated or certified, and none of such
information is or will be, when taken as a whole, incomplete by omitting to
state any material fact necessary to make such information not misleading in
light of the circumstances under which made (it being recognized by the
Administrative Agent and the Lenders that any projections and forecasts
provided by the Company are based on good faith estimates and assumptions
believed by the Company to be reasonable as of the date of the applicable
projections or assumptions and that actual results during the period or periods
covered by any such projections and forecasts may differ from projected or
forecasted results).

 

9.18  Intellectual Property. Each of the
Company and each Subsidiary owns and possesses or has a license or other right
to use all patents, patent rights, trademarks, trademark rights, trade names,
trade name rights, service marks, service mark rights and copyrights as are
necessary for the conduct of the businesses of the Company or such Subsidiary,
without any infringement upon rights of others which would reasonably be
expected to have a Material Adverse Effect.

 

9.19  Burdensome Obligations. Neither the
Company nor any Subsidiary is a party to any agreement or contract or subject
to any restriction contained in its organizational documents which would
reasonably be expected to have a Material Adverse Effect.

 

9.20  Labor Matters. As of the Closing Date,
except as set forth on Schedule 9.20, neither the Company nor any
Subsidiary is subject to any labor or collective bargaining agreement. There
are no existing or threatened strikes, lockouts or other labor disputes
involving the Company or any Subsidiary that singly or in the aggregate would
reasonably be expected to have a Material Adverse Effect. Hours worked by and
payment made to employees of the Company and its Subsidiaries are not in
violation of the Fair Labor Standards Act (to the extent applicable) or any
other applicable law, rule or regulation dealing with such matters, which
violation could reasonably be expected to have a Material Adverse Effect.

 

9.21  No Default. No Event of Default or
Unmatured Event of Default exists or would result from the incurrence by the
Company or any Subsidiary of any Debt hereunder or under any other Loan
Document.

 

9.22  Adjoined Acquisition. (a)  The Company has heretofore furnished the
Administrative Agent a true and correct copy of the Adjoined Acquisition
Agreement.

 

41

 

(b)           Each of the Company, Kanbay
Consulting, LLC and, to the Company’s knowledge, each other party to the
Adjoined Acquisition Agreement, has duly taken all necessary corporate,
partnership or other organizational action to authorize the execution, delivery
and performance of the Adjoined Acquisition Agreement and the consummation of
transactions contemplated thereby.

 

(c)           The Adjoined Acquisition will comply
with all applicable legal requirements and, except as set forth on Schedule
9.22, all necessary governmental, regulatory, creditor, shareholder,
partner and other material consents, approvals and exemptions required to be
obtained by the Company or Kanbay Consulting, LLC and, to the Company’s
knowledge, each other party to the Adjoined Acquisition Agreement in connection
with the Adjoined Acquisition will be, prior to consummation of the Adjoined
Acquisition, duly obtained and will be in full force and effect. As of the
Closing Date, all applicable waiting periods with respect to the Adjoined
Acquisition will have expired without any action being taken by any competent
governmental authority which restrains, prevents or imposes material adverse
conditions upon the consummation of the Adjoined Acquisition.

 

(d)           The execution and delivery of the
Adjoined Acquisition Agreement did not, and the consummation of the Adjoined
Acquisition will not, violate any statute or regulation of the United States
(including any securities law) or of any state or other applicable
jurisdiction, or any order, judgment or decree of any court or governmental
body binding on the Company or any Subsidiary or, to the Company’s knowledge,
any other party to the Adjoined Acquisition Agreement, or, except as set forth on
Schedule 9.22, result in a breach of, or constitute a default under, any
material agreement, indenture, instrument or other document, or any judgment,
order or decree, to which the Company or any Subsidiary is a party or by which
the Company or any Subsidiary is bound or, to the Company’s knowledge, to which
any other party to the Adjoined Acquisition Agreement is a party or by which
any such party is bound, except for breaches and defaults as have been cured or
waived on or prior to the Closing Date.

 

(e)           No statement or representation made
in the Adjoined Acquisition Agreement by the Company or Kanbay Consulting, LLC
or, to the Company’s knowledge, any other Person, contains any untrue statement
of a material fact or omits to state any material fact required to be stated
therein or necessary in order to make the statements made therein, in light of
the circumstances under which they are made, not misleading.

 

SECTION 10 
AFFIRMATIVE COVENANTS.

 

Until the
expiration or termination of the Commitments and thereafter until all
Obligations hereunder and under the other Loan Documents are paid in full and
all Letters of Credit have been terminated or Cash Collateralized, the Company
agrees that, unless at any time the Required Lenders shall otherwise expressly consent
in writing, it will:

 

10.1  Reports, Certificates and Other
Information. Furnish to the Administrative Agent for distribution to each
Lender:

 

10.1.1  Annual Report. Promptly when available
and in any event within 90 days after the close of each Fiscal Year: (a) a copy
of the annual audit report of the Company and its

 

42

 

Subsidiaries for
such Fiscal Year, including therein consolidated balance sheets and statements
of earnings and cash flows of the Company and its Subsidiaries as at the end of
such Fiscal Year, certified without adverse reference to going concern value
and without qualification by independent auditors of recognized standing
selected by the Company and reasonably acceptable to the Administrative Agent,
together with a written statement from such accountants to the effect that in
making the examination necessary for the signing of such annual audit report by
such accountants, nothing came to their attention that caused them to believe that
the Company was not in compliance with any provision of Section 11.11
or, if something has come to their attention that caused them to believe that
the Company was not in compliance with any such provision, describing such
non-compliance in reasonable detail (which certificate may be limited or
withheld to the extent required by accounting rules or guidelines in accordance
with the normal commercial practices of such accountants); (b) a comparison
with the projections for such Fiscal Year (commencing with such comparison
between actual results for Fiscal Year 2006 and the projections for such Fiscal
Year) and a comparison with the previous Fiscal Year; and (c) a consolidating
balance sheet of the Company and its Subsidiaries as of the end of such Fiscal
Year and consolidating statement of earnings and cash flows for the Company and
its Subsidiaries for such Fiscal Year, certified by a Senior Officer of the
Company.

 

10.1.2  Interim Reports. (a)  Promptly when available and in any event
within 45 days after the end of each Fiscal Quarter (except the last Fiscal
Quarter of each Fiscal Year), a consolidated balance sheet of the Company and
its Subsidiaries as of the end of such Fiscal Quarter, together with
consolidated statements of earnings and cash flows for such Fiscal Quarter and
for the period beginning with the first day of such Fiscal Year and ending on
the last day of such Fiscal Quarter, together with a comparison with the
corresponding period of the previous Fiscal Year and a comparison with the projections
for such period of the current Fiscal Year, certified by a Senior Officer of
the Company; and (b) promptly when available and in any event within 30 days
after the end of each month, a consolidated balance sheet of the Company and
its Subsidiaries as of the end of such month, together with consolidated
statements of earnings and a consolidated statement of cash flows for such
month and for the period beginning with the first day of such Fiscal Year and
ending on the last day of such month, together with a comparison with the
corresponding period of the previous Fiscal Year (commencing with such
comparison between actual results for the Fiscal Quarter ended June 30, 2006
and the projections for such Fiscal Quarter) and a comparison with the projections
for such period of the current Fiscal Year, certified by a Senior Officer of
the Company.

 

10.1.3  Compliance Certificates.
Contemporaneously with the furnishing of a copy of each annual audit report
pursuant to Section 10.1.1 and each set of quarterly statements pursuant
to Section 10.1.2, a duly completed compliance certificate in the form
of Exhibit B, with appropriate insertions, dated the date of such annual
report or such quarterly statements and signed by a Senior Officer of the
Company, containing a computation of each of the financial ratios and
restrictions set forth in Section 11.11 and to the effect that such
officer has not become aware of any Event of Default or Unmatured Event of
Default that has occurred and is continuing or, if there is any such event,
describing it and the steps, if any, being taken to cure it.

 

10.1.4  Reports to the SEC and to Shareholders.
Promptly upon the filing or sending thereof, copies of all regular, periodic or
special reports of the Company or any Subsidiary filed with the SEC (other than
filings on Form 4); copies of all registration statements of the Company

 

43

 

or any Subsidiary filed
with the SEC (other than on Form S-8); and copies of all proxy statements or
other material communications made to security holders generally.

 

10.1.5  Notice of Default, Litigation and ERISA
Matters. Promptly upon becoming aware of any of the following, written
notice describing the same and the steps being taken by the Company or the
Subsidiary affected thereby with respect thereto:

 

(a)           the occurrence of an Event of Default
or an Unmatured Event of Default;

 

(b)           any litigation, arbitration or
governmental investigation or proceeding not previously disclosed by the
Company to the Lenders which has been instituted or, to the knowledge of the
Company, is threatened against the Company or any Subsidiary or to which any of
the properties of any thereof is subject which would reasonably be expected to
have a Material Adverse Effect;

 

(c)           the institution of any steps by any
member of the Controlled Group or any other Person to terminate any Pension
Plan, or the failure of any member of the Controlled Group to make a required
contribution to any Pension Plan (if such failure is sufficient to give rise to
a Lien under Section 302(f) of ERISA) or to any Multiemployer Pension Plan, or
the taking of any action with respect to a Pension Plan which could result in
the requirement that the Company furnish a bond or other security to the PBGC
or such Pension Plan, or the occurrence of any event with respect to any
Pension Plan or Multiemployer Pension Plan which could result in the incurrence
by any member of the Controlled Group of any material liability, fine or
penalty (including any claim or demand for withdrawal liability or partial
withdrawal from any Multiemployer Pension Plan), or any material increase in
the contingent liability of the Company with respect to any post-retirement
welfare benefit plan or other employee benefit plan of the Company or another
member of the Controlled Group, or any notice that any Multiemployer Pension
Plan is in reorganization, that increased contributions may be required to
avoid a reduction in plan benefits or the imposition of an excise tax, that any
such plan is or has been funded at a rate less than that required under Section
412 of the Code, that any such plan is or may be terminated, or that any such
plan is or may become insolvent;

 

(d)           any cancellation (without concurrent
replacement) or material change in any insurance maintained by the Company or
any Subsidiary; or

 

(e)           any other event (including (i) any
violation of any Environmental Law or the assertion of any Environmental Claim
or (ii) the enactment or effectiveness of any law, rule or regulation) which
would reasonably be expected to have a Material Adverse Effect.

 

10.1.6  Management Reports. Promptly upon
receipt thereof, copies of all detailed financial and management reports
submitted to the Company by independent auditors in connection with each annual
or interim audit made by such auditors of the books of the Company.

 

10.1.7  Projections. As soon as practicable,
and in any event not later than 30 days after the commencement of each Fiscal
Year, financial projections for the Company and its

 

44

 

Subsidiaries for such
Fiscal Year prepared in a manner consistent with the projections delivered by the
Company to the Lenders prior to the Closing Date or otherwise in a manner
reasonably satisfactory to the Administrative Agent, accompanied by a
certificate of a Senior Officer of the Company on behalf of the Company to the
effect that (a) such projections were prepared by the Company in good faith,
(b) the Company has a reasonable basis for the assumptions contained in such
projections and (c) such projections have been prepared in accordance with such
assumptions.

 

10.1.8  Calculation of Asset Coverage Ratio.
Not later 10 Business Days after the end of each month, a certificate signed by
a Senior Officer of the Company, containing a computation of the Asset Coverage
Ratio as of the last Business Day of such month.

 

10.1.9  Other Information. Promptly from time
to time, such other information concerning the Company or any Subsidiary as any
Lender or the Administrative Agent may reasonably request.

 

Information
required to be delivered pursuant to Section 10.1 shall be deemed to
have been delivered on the date on which (i) such information is actually
available for review by the Lenders and either (A) has been posted by the
Company on the Company’s website at http://www.kanbay.com or at
http://www.sec.gov or (B) has been posted on the Company’s behalf on any
extranet service that may be utilized by the Administrative Agent for
communications with the Lenders and (ii) the Company provides notice to the
Lenders that such information is available and designates one or more of the
above websites on which such information is located. At the request of the
Administrative Agent, the Company will provide by electronic mail electronic
versions (i.e., soft copies) of all documents containing such information.

 

10.2  Books, Records and Inspections. Keep,
and cause each Subsidiary to keep, its books and records in accordance with
sound business practices sufficient to allow the preparation of the financial
statements required to be delivered pursuant to Sections 10.1.1 and 10.1.2
in accordance with GAAP; permit, and cause each Subsidiary to permit, any
Lender or the Administrative Agent or any representative thereof to inspect the
properties and operations of the Company or any Subsidiary; and permit, and
cause each Subsidiary to permit, at any reasonable time and with reasonable
notice (or at any time without notice if an Event of Default exists), any
Lender or the Administrative Agent or any representative thereof to visit any
or all of its offices, to discuss its financial matters with its officers and
its independent auditors (and the Company hereby authorizes such independent
auditors to discuss such financial matters with any Lender or the
Administrative Agent or any representative thereof), and to examine (and, at
the expense of the Company, photocopy extracts from) any of its books or other
records; and permit, and cause each Subsidiary to permit, the Administrative
Agent and its representatives to inspect the Inventory and other tangible
assets of the Company or such Subsidiary, to perform appraisals of the equipment
of the Company or such Subsidiary, and to inspect, audit, check and make copies
of and extracts from the books, records, computer data, computer programs,
journals, orders, receipts, correspondence and other data relating to
Inventory, Accounts and any other Collateral. Not more than one such inspection
or audit by the Administrative Agent during any Fiscal Year shall be at the
Company’s expense except to the extent such inspection or audit occurs during
the continuance of an Event of Default.

 

45

 

10.3  Maintenance of Property; Insurance.
(a)  Keep, and cause each Subsidiary to
keep, all property reasonably necessary in the ordinary business operations of
the Company or such Subsidiary in good working order and condition, ordinary
wear and tear excepted.

 

(b)           Maintain, and cause each Subsidiary
to maintain, with responsible insurance companies, such insurance coverage as
may be required by any law or governmental regulation or court decree or order
applicable to it and such other insurance, to such extent and against such
hazards and liabilities, as is customarily maintained by companies similarly
situated, but which shall insure against all risks and liabilities of the type
identified on Schedule 9.15 and shall have insured amounts no less than
those set forth on such Schedule; and, upon request of the Administrative Agent
or any Lender, furnish to the Administrative Agent or such Lender a certificate
setting forth in reasonable detail the nature and extent of all insurance
maintained by the Company and its Subsidiaries. The Company shall cause each
issuer of an insurance policy with respect to a Loan Party to provide the
Administrative Agent with an endorsement (i) showing the Administrative Agent
as loss payee with respect to each policy of property or casualty insurance and
naming the Administrative Agent as an additional insured with respect to each
policy of liability insurance, (ii) providing that 30 days’ notice will be
given to the Administrative Agent prior to any cancellation of, material
reduction or change in coverage provided by or other material modification to
such policy and (iii) reasonably acceptable in all other respects to the
Administrative Agent.

 

(c)           UNLESS THE COMPANY PROVIDES THE
ADMINISTRATIVE AGENT WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS
AGREEMENT, THE ADMINISTRATIVE AGENT MAY PURCHASE INSURANCE AT THE COMPANY’S
EXPENSE TO PROTECT THE ADMINISTRATIVE AGENT’S AND THE LENDERS’ INTERESTS IN THE
COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT THE COMPANY OR A
SUBSIDIARY’S INTERESTS. THE COVERAGE THAT THE ADMINISTRATIVE AGENT PURCHASES
MAY NOT PAY ANY CLAIM THAT IS MADE AGAINST THE COMPANY OR ANY SUBSIDIARY IN
CONNECTION WITH THE COLLATERAL. THE COMPANY MAY LATER CANCEL ANY INSURANCE
PURCHASED BY THE ADMINISTRATIVE AGENT, BUT ONLY AFTER PROVIDING THE
ADMINISTRATIVE AGENT WITH EVIDENCE THAT THE COMPANY HAS OBTAINED INSURANCE AS
REQUIRED BY THIS AGREEMENT. IF THE ADMINISTRATIVE AGENT PURCHASES INSURANCE FOR
THE COLLATERAL, THE COMPANY WILL BE RESPONSIBLE FOR THE COSTS OF THAT
INSURANCE, INCLUDING INTEREST AND ANY OTHER CHARGES THAT MAY BE IMPOSED WITH
THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR
EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO THE
PRINCIPAL AMOUNT OF THE LOANS OWING HEREUNDER. THE COSTS OF THE INSURANCE MAY
BE MORE THAN THE COST OF THE INSURANCE THE COMPANY AND ITS SUBSIDIARIES MAY BE
ABLE TO OBTAIN ON THEIR OWN.

 

10.4  Compliance with Laws; Payment of Taxes and
Liabilities. (a)  Comply, and cause
each Subsidiary to comply, in all material respects with all applicable laws,
rules, regulations, decrees, orders, judgments, licenses and permits, except
where failure to comply would not reasonably be expected to have a Material
Adverse Effect; (b) without limiting clause (a) above,

 

46

 

ensure, and cause each
Subsidiary to ensure, that neither the Company nor any Subsidiary is or shall
be (i) listed on the Specially Designated Nationals and Blocked Person List
maintained by the Office of Foreign Assets Control (“OFAC”), Department
of the Treasury, and/or any other similar lists maintained by OFAC pursuant to
any authorizing statute, Executive Order or regulation or (ii) a person
designated under Section 1(b), (c) or (d) of Executive Order No. 13224
(September 23, 2001), any related enabling legislation or any other similar
Executive Orders, (c) without limiting clause (a) above, comply, and
cause each Subsidiary to comply, with all applicable Bank Secrecy Act (“BSA”)
and anti-money laundering laws and regulations and (d) pay, and cause each
Subsidiary to pay, prior to delinquency, all taxes and other governmental
charges against it or any Collateral, as well as claims of any kind which, if
unpaid, could become a Lien on any of its property; provided that the
foregoing shall not require the Company or any Subsidiary to pay any such tax
or charge so long as it shall contest the validity thereof in good faith by
appropriate proceedings and shall set aside on its books adequate reserves with
respect thereto in accordance with GAAP and, in the case of a claim which could
become a Lien on any Collateral, such contest proceedings shall stay the
foreclosure of such Lien or the sale of any portion of the Collateral to
satisfy such claim.

 

10.5  Maintenance of Existence, etc.
Maintain and preserve, and (subject to Section 11.4) cause each
Subsidiary to maintain and preserve, (a) its existence and good standing in the
jurisdiction of its organization and (b) its qualification to do business and
good standing in each jurisdiction where the nature of its business makes such
qualification necessary (other than such jurisdictions in which the failure to
be qualified or in good standing would not reasonably be expected to have a
Material Adverse Effect).

 

10.6  Use of Proceeds. Use the proceeds of
the Loans, and the Letters of Credit, solely to finance the Adjoined
Acquisition, to refinance existing Debt of the Company and its Subsidiaries,
for working capital purposes, for Capital Expenditures and for other general
business purposes; and not use or permit any proceeds of any Loan to be used,
either directly or indirectly, for the purpose, whether immediate, incidental
or ultimate, of “purchasing or carrying” any Margin Stock.

 

10.7  Employee Benefit Plans.

 

(a)           Maintain, and cause each other member
of the Controlled Group to maintain, each Pension Plan in substantial
compliance with all applicable requirements of law and regulations.

 

(b)           Make, and cause each other member of
the Controlled Group to make, on a timely basis, all required contributions to
any Multiemployer Pension Plan.

 

(c)           Not, and not permit any other member
of the Controlled Group to (i) seek a waiver of the minimum funding standards
of ERISA, (ii) terminate or withdraw from any Pension Plan or Multiemployer
Pension Plan or (iii) take any other action with respect to any Pension Plan
that would reasonably be expected to entitle the PBGC to terminate, impose
liability in respect of, or cause a trustee to be appointed to administer, any
Pension Plan, unless the actions or events described in clauses (i), (ii)
and (iii) individually or in the aggregate would not have a Material
Adverse Effect.

 

47

 

10.8  Environmental Matters. If any release
or threatened release or other disposal of Hazardous Substances shall occur or
shall have occurred on any real property of the Company or any Subsidiary, the
Company shall, or shall cause the applicable Subsidiary to, cause the prompt
containment and removal of such Hazardous Substances and the remediation of
such real property as necessary to comply with all Environmental Laws and to
preserve the value of such real property. Without limiting the generality of
the foregoing, the Company shall, and shall cause each Subsidiary to, comply
with any applicable Federal or state judicial or administrative order requiring
the performance at any real property of the Company or any Subsidiary of activities
in response to the release or threatened release of a Hazardous Substance. To
the extent that the transportation of Hazardous Substances is permitted by this
Agreement, (a) the Company shall, and shall cause each other Loan Party to,
dispose of such Hazardous Substances, or of any other wastes, only at licensed
disposal facilities operating in compliance with Environmental Laws and (b) the
Company shall cause each other Subsidiary to dispose of such Hazardous
Substances and other wastes in a manner that would not reasonably be expected
to have a Material Adverse Effect.

 

10.9  Further Assurances. Take, and cause
each Subsidiary to take, such actions as are necessary or as the Administrative
Agent or the Required Lenders may reasonably request from time to time to
ensure that the Obligations of each Loan Party under the Loan Documents are
secured by substantially all of the assets of the Company and each Domestic
Subsidiary (including all Capital Securities of each Domestic Subsidiary and
65% of all Capital Securities of each first-tier Material Foreign Subsidiary
but excluding the Capital Securities of any other Foreign Subsidiary) and
guaranteed by each Loan Party (other than the Company) and, to the extent no material adverse tax consequences would result, each
Material Foreign Subsidiary (including, upon the acquisition or creation
thereof, any Subsidiary acquired or created after the Closing Date), in each
case as the Administrative Agent may determine, including (a) the execution and
delivery of guaranties, security agreements, pledge agreements, fee mortgages,
fee deeds of trust, financing statements and other documents, and the filing or
recording of any of the foregoing, (b) the delivery of certificated securities
and other Collateral with respect to which perfection is obtained by possession
to the extent required by the Guaranty and Collateral Agreement, (c) using
commercially reasonable efforts to obtain Collateral Access Agreements, (d)
using commercially reasonable efforts to cause leasehold Mortgages to be
delivered to the Administrative Agent (i) as soon as practicable following the
Closing Date with respect to the properties located at 4645 East Cotton Center
Boulevard, Building 2, Suite 167, Phoenix, Arizona and 1050 Winter Street,
Waltham, Massachusetts and (ii) promptly upon request of the Administrative
Agent with respect to any other property leased by the Company or any other
Loan Party, (e) as soon as practicable following the request of the Required
Lenders during the existence of an Event of Default or an Unmatured Event of
Default, delivering surveys, title commitments, title policies and/or legal
opinions with respect to any real property leased by any Loan Party that is
subject to a Mortgage and (f) providing control agreements in favor of the
Administrative Agent with respect to U.S. deposit accounts and U.S. securities
accounts maintained by the Loan Parties; provided that the
Administrative Agent may give any notice of exclusive control or similar notice
under any control agreement only if an Event of Default under Section 13.1.1
or 13.1.4 exists.

 

10.10  Cash Management Services. Take such
actions as are necessary to cause the Loan Parties to establish, not later than
August 1, 2006 or such later date acceptable to the

 

48

 

Administrative Agent (or,
in the case of any Person that becomes a Loan Party after the Closing Date,
promptly upon becoming a Loan Party), and thereafter maintain a banking
relationship with LaSalle providing cash management services that are
reasonably acceptable to the Administrative Agent and the Company.

 

SECTION 11  NEGATIVE COVENANTS

 

Until the
expiration or termination of the Commitments and thereafter until all
Obligations hereunder and under the other Loan Documents are paid in full and
all Letters of Credit have been terminated or Cash Collateralized, the Company
agrees that, unless at any time the Required Lenders shall otherwise expressly
consent in writing, it will:

 

11.1  Debt. Not, and not permit any Subsidiary
to, create, incur, assume or suffer to exist any Debt, except:

 

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

 

(b)           Debt secured by Liens permitted by Section
11.2(d), and extensions, renewals and refinancings thereof; provided
that the aggregate amount of all such Debt at any time outstanding shall not
exceed $10,000,000;

 

(c)           subject to Section 11.10(a),
intercompany Debt; provided that (i) all such Debt owing to a Loan Party
shall be evidenced by one or more demand notes in form and substance reasonably
satisfactory to the Administrative Agent and, to the extent required by the
Guaranty and Collateral Agreement, pledged and delivered to the Administrative
Agent pursuant to the Collateral Documents as additional collateral security
for the Obligations and (ii) all such Debt owing by a Loan Party shall be
subordinated to the Obligations in a manner reasonably satisfactory to the
Administrative Agent;

 

(d)           Hedging Obligations incurred for bona
fide hedging purposes and not for speculation;

 

(e)           Debt of Loan Parties described on Schedule
11.1 and any extension, renewal or refinancing thereof so long as the
principal amount thereof is not increased;

 

(f)            Debt to be Repaid (so long as such
Debt is repaid on the Closing Date with the proceeds of the initial Loans
hereunder);

 

(g)           Contingent Liabilities arising with
respect to customary indemnification obligations in favor of (i) sellers in
connection with the Adjoined Acquisition and Acquisitions permitted under Section
11.4, (ii) purchasers in connection with dispositions permitted under Section
11.4 and (iii) customers in the ordinary course of business;

 

(h)           Contingent Liabilities in respect of
guarantees by the Company or any Subsidiary of Debt of the Company or any other
Subsidiary permitted to be incurred hereunder;

 

49

 

(i)            Contingent Liabilities arising out
of performance or surety bonds or similar arrangements arising in the ordinary
course of business consistent with past practice;

 

(j)            Debt arising out of the factoring,
sale or other disposition of receivables in an aggregate amount not at any time
exceeding $1,000,000;

 

(k)           unsecured promissory notes issued to
satisfy the Gazelle Earnout, provided that the sum of (i) the aggregate outstanding
principal amount of such promissory notes, (ii) the aggregate amount of cash
paid by the Company and its Subsidiaries to satisfy the Gazelle Earnout and
(iii) the aggregate fair market value of capital stock issued by the Company
and its Subsidiaries to satisfy the Gazelle Earnout shall not exceed
$7,600,000; and

 

(l)            other Debt, in addition to the Debt
listed above (other than Debt of the type described in clause (c)
above), in an aggregate outstanding amount not at any time exceeding $10,000,000;
provided that all Debt of any Loan Party that is permitted solely by
this clause (l) shall be unsecured.

 

11.2  Liens. Not, and not permit any
Subsidiary to, create or permit to exist any Lien on any of its real or
personal properties, assets or rights of whatsoever nature (whether now owned
or hereafter acquired), except:

 

(a)           Liens for taxes, assessments or other
governmental charges not at the time delinquent or thereafter payable without
penalty or being contested in good faith by appropriate proceedings and, in
each case, for which it maintains adequate reserves;

 

(b)           Liens arising in the ordinary course
of business (such as (i) Liens of carriers, warehousemen, mechanics and
materialmen and other similar Liens imposed by law and (ii) Liens in the form
of deposits or pledges incurred in connection with worker’s compensation,
unemployment compensation and other types of social security (excluding Liens
arising under ERISA) or in connection with surety bonds, bids, performance
bonds and similar obligations) for sums not overdue or being contested in good
faith by appropriate proceedings and not involving any advances or borrowed
money or the deferred purchase price of property or services and, in each case,
for which it maintains adequate reserves;

 

(c)           Liens on properties, assets or rights
of Loan Parties existing on the Closing Date and described on Schedule 11.2;

 

(d)           subject to the limitation set forth
in Section 11.1(b), (i) Liens arising in connection with Capital Leases
(and attaching only to the property being leased), (ii) Liens existing on
property at the time of the acquisition thereof by the Company or any
Subsidiary (and not created in contemplation of such acquisition) and (iii)
Liens that constitute purchase money security interests on any property
securing debt incurred for the purpose of financing all or any part of the cost
of acquiring such property, provided that any such Lien attaches to such
property within 20 days of the acquisition thereof and attaches solely to the
property so acquired;

 

50

 

(e)           attachments, appeal bonds, judgments
and other similar Liens, for sums not exceeding $2,500,000 arising in
connection with court proceedings, provided the execution or other
enforcement of such Liens is effectively stayed and the claims secured thereby
are being actively contested in good faith and by appropriate proceedings;

 

(f)            easements, rights of way,
restrictions, minor defects or irregularities in title and other similar Liens
not interfering in any material respect with the ordinary conduct of the
business of the Company or any Subsidiary;

 

(g)           leases or subleases granted to others
not interfering in any material respect with the business of the Company or any
of its Subsidiaries;

 

(h)           customary rights of set-off,
revocation, refund or chargeback under deposit agreements or under the UCC of
banks or other financial institutions where the Company or any of its
Subsidiaries maintains deposits in the ordinary course of business permitted by
this Agreement;

 

(i)            Liens arising under the Loan
Documents;

 

(j)            the replacement, extension or
renewal of any Lien permitted by clause (c) or (d) above upon or
in the same property subject thereto arising out of the extension, renewal or
replacement of the Debt secured thereby (without increase in the amount
thereof);

 

(k)           Liens on the assets of Subsidiaries
that are not Loan Parties securing Debt permitted by Section 11.1(d), (j)
or (l); and

 

(l)            other Liens securing obligations in
an aggregate amount not to exceed $1,000,000 at any time outstanding.

 

11.3  Restricted Payments. Not, and not
permit any Subsidiary to, (a) make any distribution to any holders of its
Capital Securities, (b) purchase or redeem any of its Capital Securities, (c)
pay any management fees or similar fees to any of its equityholders or any
Affiliate thereof or (d) set aside funds for any of the foregoing.
Notwithstanding the foregoing, (i) any Subsidiary may pay dividends or make
other distributions to the Company or to such Subsidiary’s parent company; and
(ii) so long as no Event of Default or Unmatured Event of Default exists or
would result therefrom, the Company may purchase or redeem Capital Securities
owned by present or former employees, officers or directors; provided
that the aggregate cash payments in any Fiscal Year for all such purchases and
redemptions shall not exceed $1,000,000 (with any excess being paid in the form
of a subordinated promissory note in form and substance acceptable to
Administrative Agent).

 

11.4  Mergers, Consolidations, Sales. Not,
and not permit any Subsidiary to, (a) be a party to any merger or
consolidation, or purchase or otherwise acquire all or substantially all of the
assets or any Capital Securities of any class of, or any partnership or joint venture
interest in, any other Person, (b) sell, transfer, convey or lease all or any
substantial part of its assets or Capital Securities (including the sale of
Capital Securities of any Subsidiary) except for sales of inventory in the
ordinary course of business, or (c) sell or assign with or without recourse any

 

51

 

receivables, except for
(i) any such merger, consolidation, sale, transfer, conveyance, lease or
assignment of or by any Subsidiary into the Company or into any Domestic
Subsidiary or by any Foreign Subsidiary into the Company, any Domestic
Subsidiary or any other Foreign Subsidiary; (ii) any such purchase or other
acquisition by (x) the Company or any Domestic Subsidiary of the assets or
Capital Securities of any Subsidiary (provided that, if the Person being
acquired is not a Wholly-Owned Subsidiary, the acquisition of the minority
interest is permitted under Section 11.10) or (y) a Foreign Subsidiary
that is not a Loan Party of the assets or Capital Securities of another Foreign
Subsidiary that is not a Loan Party; (iii) sales and dispositions of assets
(including the Capital Securities of Subsidiaries) for at least fair market
value (as determined by the Board of Directors of the Company) so long as the
net book value of all assets sold or otherwise disposed of in any Fiscal Year
does not exceed 10% of the net book value of the consolidated assets of the
Company and its Subsidiaries as of the last day of the preceding Fiscal Year;
(iv) the Adjoined Acquisition; and (v) any Acquisition by the Company or any
domestic Wholly-Owned Subsidiary where:

 

(A)          the Person acquired is primarily
engaged, or substantially all of the assets acquired are for use, in the same
line of business as the Company and its Subsidiaries on the Closing Date (or
another line of business reasonably related thereto);

 

(B)           immediately before and after giving
effect to such Acquisition, no Event of Default or Unmatured Event of Default
shall exist;

 

(C)           the aggregate cash consideration paid
by the Company and its Subsidiaries (including, to the extent that the Company
or any Subsidiary is required to pay such Debt pursuant to or as a result of
the applicable Acquisition, any Acquired Debt) in connection with (i) such
Acquisition is not more than $25,000,000 and (ii) all Acquisitions during the
12—month period ending on the date of (and including) such Acquisition is not
more than $50,000,000 in the aggregate;

 

(D)          the aggregate total consideration
(including any Acquired Debt) in connection with (i) such Acquisition is not
more than $50,000,000 and (ii) all Acquisitions during the 12—month period
ending on the date of (and including) such Acquisition is not more than
$100,000,000 in the aggregate;

 

(E)           immediately after giving effect to
such Acquisition, the Company is in pro forma compliance with all the financial
ratios and restrictions set forth in Section 11.11;

 

(F)           in the case of an Acquisition of any
Person, the board of directors or similar governing body of such Person has approved
such Acquisition;

 

(G)           reasonably prior to such Acquisition,
the Administrative Agent shall have received complete drafts of each material
document, instrument and agreement to be executed in connection with such
Acquisition (and promptly after such Acquisition, the Administrative Agent
shall have received executed or conformed copies of each such document,
instrument and agreement) together with all lien search reports and lien
release letters and other documents as the Administrative Agent may require to
evidence the termination of Liens on the assets or business to be acquired;

 

52

 

(H)          not less than ten Business Days prior
to such Acquisition, the Administrative Agent shall have received an acquisition
summary with respect to the Person and/or business or division to be acquired,
such summary to include a reasonably detailed description thereof (including
financial information) and operating results (including financial statements
for the most recent 12 month period for which they are available and as
otherwise available), the terms and conditions, including economic terms, of
the proposed Acquisition, and the Company’s calculation of pro forma EBITDA
(assuming such Acquisition occurred on the first day of the relevant period)
relating thereto;

 

(I)            consents have been obtained in favor
of the Administrative Agent and the Lenders to the collateral assignment of
rights and indemnities under the related acquisition documents and opinions of
counsel for the Company or any Subsidiary and (if delivered to the Company or
any Subsidiary) the selling party in favor of the Administrative Agent and the
Lenders have been delivered;

 

(J)            simultaneously with the closing of
such Acquisition, the target company (if such Acquisition is structured as a
purchase of equity and the target company would be a Loan Party after giving
effect to such Acquisition) or the applicable Loan Party (if such Acquisition
is structured as a purchase of assets or a merger and a Loan Party is the
acquiring or surviving entity) executes and delivers to the Administrative
Agent (a) such documents necessary to grant to the Administrative Agent for the
benefit of the Lenders a first priority Lien in substantially all of the assets
of such target company or surviving company, and their respective Subsidiaries
(to the extent such Subsidiaries would be Loan Parties after giving effect to
such Acquisition) in accordance with the requirements of the Guaranty and
Collateral Agreement, each in form and substance satisfactory to the
Administrative Agent and (b) an unlimited Guaranty of the Obligations, or at
the option of the Administrative Agent in the Administrative Agent’s absolute
discretion, a joinder agreement satisfactory to the Administrative Agent in
which such target company or surviving company, and their respective
Subsidiaries becomes a borrower under this Agreement and assumes primary, joint
and several liability for the Obligations; and

 

(K)          if the Acquisition is structured as a
merger involving the Company and one or more other Persons, the Company is the
surviving entity.

 

11.5  Restriction of Amendments to Certain
Documents. (a) Not amend or otherwise modify, or waive any rights under the
Adjoined Acquisition Agreement or any document related thereto if, in any case,
such amendment, modification or waiver could be adverse to the interests of the
Lenders, (b) not, and not permit any Subsidiary to, amend or modify its
charter, by-laws or other organizational document in any way which would reasonably
be expected to materially adversely affect the interests of the Lenders and (c)
not, and not permit any other Loan Party to, change its state of formation or
its organizational form without delivering at least 30 days’ prior notice of
such change to the Administrative Agent.

 

11.6  Transactions with Affiliates. Not, and
not permit any Subsidiary to, enter into, or cause, suffer or permit to exist
any transaction or contract with any of its other Affiliates (other than any
Loan Party) which is on terms which are less favorable, taken as a whole, than
are obtainable from any Person which is not one of its Affiliates.

 

53

 

11.7  Unconditional Purchase Obligations.
Not, and not permit any Subsidiary to, enter into or be a party to any contract
for the purchase of materials, supplies or other property or services if such
contract requires that payment be made by it regardless of whether delivery is
ever made of such materials, supplies or other property or services.

 

11.8  Inconsistent Agreements. Not, and not
permit any Subsidiary to, enter into any agreement containing any provision
which would (a) be violated or breached by any borrowing by the Company
hereunder or by the performance by any Loan Party of any of its Obligations
hereunder or under any other Loan Document, (b) prohibit the Company or any
other Loan Party from granting to the Administrative Agent and the Lenders a
Lien on any of its assets or (c) create or permit to exist or become effective any
encumbrance or restriction on the ability of any Subsidiary to (i) pay
dividends or make other distributions to the Company or any other Subsidiary,
or pay any Debt owed to the Company or any other Subsidiary, (ii) make loans or
advances to the Company or any Subsidiary or (iii) transfer any of its assets
or properties to the Company or any Subsidiary, other than (A) customary
restrictions and conditions contained in agreements relating to the sale of all
or a substantial part of the assets of any Subsidiary pending such sale, provided
that such restrictions and conditions apply only to the Subsidiary to be sold
and such sale is permitted hereunder (B) restrictions or conditions
imposed by any agreement relating to purchase money Debt, Capital Leases and other
secured Debt permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Debt and (C) customary
provisions in leases and other contracts restricting the assignment thereof.

 

11.9  Business Activities. Not, and not
permit any Subsidiary to, engage in any line of business other than the
businesses engaged in on the date hereof and businesses reasonably related
thereto.

 

11.10 Investments.
Not, and not permit any Subsidiary to, make or permit to exist any Investment
in any other Person, except the following:

 

(a)           Investments by any Loan Party in any
Foreign Subsidiary (including intercompany Debt described in Section 11.1(c))
in an aggregate outstanding amount not to exceed $10,000,000 at any time, subject
to compliance with all applicable provisions of Section 10.9, and
Investments by any Foreign Subsidiary in any Wholly-Owned Foreign Subsidiary;

 

(b)           contributions by the Company or any
Subsidiary to the capital of any Domestic Subsidiary, so long as, concurrently
with or immediately after such contribution, the provider and the recipient of
any such capital contribution has complied with all applicable provisions of Section
10.9;

 

(c)           Investments constituting Debt
permitted by Section 11.1 (other than Debt owing by a Foreign Subsidiary
to a Loan Party permitted by Section 11.1(c));

 

(d)           Contingent Liabilities constituting
Debt permitted by Section 11.1 or Liens permitted by Section 11.2;

 

(e)           Cash Equivalent Investments;

 

54

 

(f)            bank deposits in the ordinary course
of business, provided that the aggregate amount of all such deposits
(excluding amounts in payroll accounts or for accounts payable, in each case to
the extent that checks have been issued to third parties) which are (i)
maintained with any bank other than a Lender and (ii) not subject to an
agreement granting “control” (within the meaning of the UCC) over such accounts
to the Administrative Agent shall not at any time exceed $10,000,000;

 

(g)           Investments in securities of Account
Debtors received pursuant to any plan of reorganization or similar arrangement
upon the bankruptcy or insolvency of such account debtors;

 

(h)           Investments to consummate
Acquisitions permitted by Section 11.4;

 

(i)            Investments listed on Schedule
11.10;

 

(j)            Investments in any securities
account that is subject to an agreement granting “control” (within the meaning
of the UCC) over such account to the Administrative Agent;

 

(k)           Investments in Kanbay Software
(India) Private Limited the proceeds of which will be used exclusively for
Capital Expenditures; and

 

(l)            other Investments, in addition to
the Investments listed above (other than Investments of the types described in clauses
(a) and (k) above) in an aggregate amount not to exceed $10,000,000
at any time.

 

provided that (x)
any Investment which when made complies with the requirements of the definition
of the term “Cash Equivalent Investment” may continue to be held
notwithstanding that such Investment if made thereafter would not comply with
such requirements; (y) no Investment otherwise permitted by clause (c), (d)
(other than any such Investment under clause (c) or (d) made in
the ordinary course of business consistent with past practice), (h), (k)
(other than any such Investment under clause (k) made in the ordinary
course of business consistent with past practice) or (l) shall be
permitted to be made if, immediately before or after giving effect thereto, any
Event of Default or Unmatured Event of Default exists.

 

11.11   Financial Covenants.

 

11.11.1  Maximum Total Leverage Ratio. Not
permit the Total Leverage Ratio as of the last day of any Fiscal Quarter
(commencing with the Fiscal Quarter ending March 31, 2006) to exceed 2.25:1.

 

11.11.2  Minimum Fixed Charge Coverage Ratio.
Not permit the Fixed Charge Coverage Ratio as of the last day of any Fiscal
Quarter (commencing with the Fiscal Quarter ending June 30, 2006) to be less
than (i) 1.25:1 for any Fiscal Quarter ending June 30, 2006 through December
31, 2006 and (ii) 1.50:1 for any Fiscal Quarter ending thereafter.

 

55

 

11.11.3  Minimum Asset Coverage Ratio. Not
permit the Asset Coverage Ratio as of the last Business Day of any month to be
less than (i) 1.00:1 from March 31, 2006 through December 31, 2006 and (ii)
1.25:1 thereafter.

 

11.11.4  Fiscal Year 2006 Capital Expenditures.
Not permit the aggregate amount of all Capital Expenditures made by the Company
and its Subsidiaries during Fiscal Year 2006 to exceed $60,000,000.

 

SECTION 12  EFFECTIVENESS; CONDITIONS OF LENDING, ETC.

 

The obligation
of each Lender to make its Loans and of the Issuing Lender to issue Letters of
Credit is subject to the following conditions precedent:

 

12.1  Initial Credit Extension. The obligation
of the Lenders to make the initial Loans and the obligation of the Issuing
Lender to issue its initial Letter of Credit (whichever first occurs) is, in
addition to the conditions precedent specified in Section 12.2, subject
to the conditions precedent that (a) all Debt to be Repaid has been (or
concurrently with the initial borrowing will be) paid in full, and that all
agreements and instruments governing the Debt to be Repaid and that all Liens
securing such Debt to be Repaid have been (or concurrently with the initial
borrowing will be) terminated and (b) the Administrative Agent shall have
received (i) evidence, reasonably satisfactory to the Administrative Agent,
that after giving effect to the initial credit extension hereunder the Company
will have (A) pro forma EBITDA for the 12 months ended December 31, 2005
(assuming the Adjoined Acquisition occurred on the first day of such period) (“Pro
Forma EBITDA”) of at least $60,000,000 and (B) a ratio of Total Debt as of December 31, 2005 to Pro Forma EBITDA of not
more than 2.00:1; (ii) evidence, reasonably satisfactory to the
Administrative Agent, that the Company has completed, or concurrently with the
initial credit extension hereunder will complete, the Adjoined Acquisition in
accordance with the terms of the Adjoined Acquisition Agreement (without any
amendment thereto or waiver thereunder unless consented to by the Lenders); and
(iii) all of the following, each duly executed and dated the Closing Date (or
such earlier date as shall be satisfactory to the Administrative Agent), in
form and substance satisfactory to the Administrative Agent (and the date on
which all such conditions precedent have been satisfied or waived in writing by
the Administrative Agent and the Lenders is called the “Closing Date”):

 

12.1.1  Notes. A Note for each Lender.

 

12.1.2  Authorization Documents. For each Loan
Party, such Person’s (a) charter (or similar formation document), certified by
the appropriate governmental authority; (b) good standing certificates in its
state of incorporation (or formation) and in each other state requested by the
Administrative Agent; (c) bylaws (or similar governing document); (d)
resolutions of its board of directors (or similar governing body) approving and
authorizing such Person’s execution, delivery and performance of the Loan
Documents to which it is party and the transactions contemplated thereby; and
(e) signature and incumbency certificates of its officers executing any of the
Loan Documents (it being understood that the Administrative Agent and each
Lender may conclusively rely on each such certificate until formally advised by
a like certificate of any changes therein), all certified by its secretary or
an assistant secretary (or similar officer) as being in full force and effect
without modification.

 

56

 

12.1.3  Consents, etc. Certified copies of all
documents evidencing any necessary corporate or partnership action,
consents and governmental approvals (if any) required for the execution,
delivery and performance by the Loan Parties of the documents referred to in
this Section 12.

 

12.1.4  Letter of Direction. A letter of
direction containing funds flow information with respect to the proceeds of the
Loans on the Closing Date.

 

12.1.5  Guaranty and Collateral Agreement. A
counterpart of the Guaranty and Collateral Agreement executed by each Loan
Party, together with all instruments, transfer powers and other items required
to be delivered in connection therewith.

 

12.1.6  Opinions of Counsel. An opinion of
counsel of (a) Winston & Strawn LLP, counsel to the Company and various
Loan Parties, and (b) Conyers, Dill & Pearman, special Bermuda counsel to
the Administrative Agent, each in form and substance reasonably acceptable to
the Administrative Agent.

 

12.1.7  Insurance. Evidence of the existence
of insurance required to be maintained pursuant to Section 10.3(b),
together with evidence that the Administrative Agent has been named as a
lender’s loss payee and an additional insured on all related insurance
policies.

 

12.1.8  Payment of Fees. Evidence of payment
by the Company of all accrued and unpaid fees, costs and expenses to the extent
then due and payable on the Closing Date, together with all Attorney Costs of
the Administrative Agent to the extent invoiced prior to the Closing Date, plus
such additional amounts of Attorney Costs as shall constitute the
Administrative Agent’s reasonable estimate of Attorney Costs incurred or to be
incurred by the Administrative Agent through the closing proceedings (provided
that such estimate shall not thereafter preclude final settling of accounts
between the Company and the Administrative Agent).

 

12.1.9 Solvency
Certificate. A certificate executed by a Senior Officer of the Company
certifying the matters set forth in Section 9.13 with respect to each
Loan Party.

 

12.1.10 Pro
Forma. (a) A consolidated pro forma balance sheet of the
Company as at the Closing Date, adjusted to give effect to the consummation of
the Adjoined Acquisition and the financings contemplated hereby as if such
transactions had occurred on such date, consistent in all material respects
with the sources and uses of cash as previously described to the Lenders and
the forecasts previously provided to the Lenders and (b) projected income
statements, balance sheets and cash flow statements prepared by the Company for
the period from the Closing Date through at least December 31, 2010 and giving
effect to the Adjoined Acquisition
and the financings contemplated hereby.

 

12.1.11   Search Results; Lien Terminations.
Certified copies of Uniform Commercial Code search reports dated a date
reasonably near to the Closing Date, listing all effective financing statements
which name any Loan Party (under their present names and any previous names) as
debtors, together with (a) copies of such financing statements, (b) payoff
letters evidencing repayment in full of all Debt to be Repaid, the termination
of all agreements relating thereto and the release of all Liens granted in
connection therewith, with Uniform Commercial Code or other appropriate
termination statements and documents effective to evidence the

 

57

 

foregoing (other than
Liens permitted by Section 11.2) and (c) such other Uniform Commercial Code
termination statements as the Administrative Agent may reasonably request.

 

12.1.12  Filings, Registrations and Recordings.
The Administrative Agent shall have received each document (including Uniform
Commercial Code financing statements) required by the Collateral Documents or
under law or reasonably requested by the Administrative Agent to be filed,
registered or recorded in order to create in favor of the Administrative Agent,
for the benefit of the Lenders, a perfected Lien on the collateral described
therein, prior to any other Liens (subject only to Liens permitted pursuant to Section
11.2), in proper form for filing, registration or recording

 

12.1.13  Closing Certificate, Consents and Permits.
A certificate executed by a Senior Officer of the Company attaching true,
correct and complete copies of the Adjoined Acquisition Agreement and documents
relating thereto and certifying that (a) all necessary governmental and
regulatory and, except as set forth on Schedule 9.22, creditor,
shareholder, partner and other material consents, approvals and exemptions
required to be obtained by the Company in connection with the Adjoined
Acquisition have been duly obtained and are in full force and effect; (b) all
material permits necessary for the operation of any business(es) acquired
pursuant to with the Adjoined Acquisition have been obtained; (c) the Merger
Price (as defined in the Adjoined Acquisition Agreement, without giving effect
to the adjustments thereto relating to Working Capital and Available Cash (each
as defined in the Adjoined Acquisition Agreement)), will not exceed the result
of (i) $165,000,000 less (ii) $7,600,000, which Adjoined and the Company have
acknowledged in the Adjoined Acquisition Agreement satisfies the Gazelle
Earnout; (d) the cash portion of the Merger Price will not exceed 58% of the
Merger Price (assuming a constant value of the Company’s common stock since the
date of the Adjoined Acquisition Agreement); (e) the balance of the Merger
Price will be paid by the issuance of common equity of the Company to the
shareholders of Adjoined on the terms set forth in the Adjoined Acquisition
Agreement; (f) all Funded Indebtedness (as defined in the Adjoined Acquisition
Agreement) of Adjoined and its Subsidiaries, other than Funded Indebtedness
with respect to outstanding capital leases in an amount not exceeding
$2,000,000, will be repaid as of the effectiveness of the Adjoined Acquisition;
(g) other than outstanding letters of credit of the Company and Adjoined and
their respective Subsidiaries that will be cash collateralized, or for which
back-to-back letters of credit will be issued, the existing indebtedness of the
Company, Adjoined and their respective Subsidiaries that will remain
outstanding following the effectiveness of the Adjoined Acquisition will not
exceed $115,000,000; (h) the aggregate fees and expenses with respect to the
Adjoined Acquisition will not exceed $5,000,000; (i) since December 31, 2004,
there has been no material adverse change in the financial condition, results of
operations or prospects of the Company and its Subsidiaries taken as a whole or
Adjoined and its Subsidiaries taken as a whole; (j) no provision of the
Adjoined Acquisition Agreement or any material related document has been
amended, waived, supplemented or otherwise modified in any material respect
without the consent of the Administrative Agent (which consent not to be
unreasonably withheld or delayed); and (k) the statements set forth in Section
12.2.1 are accurate as of the Closing Date.

 

12.1.14  Financial Statements. (a) Audited
consolidated financial statements for the Company and its Subsidiaries and
Adjoined for the Fiscal Years ending December 31, 2002, 2003 and 2004 and (b)
unaudited interim consolidated financial statements for the Company and

 

58

 

its Subsidiaries and
Adjoined for each Fiscal Quarter ended after the latest Fiscal Year referred to
in clause (i) above.

 

12.1.15 Other.
Such other documents as the Administrative Agent or any Lender may reasonably
request.

 

12.2  Conditions. The obligation (a) of each
Lender to make each Loan and (b) of the Issuing Lender to issue each
Letter of Credit is subject to the following further conditions precedent that:

 

12.2.1  Compliance with Warranties, No Default,
etc. Both before and after giving effect to any borrowing and the issuance
of any Letter of Credit, the following statements shall be true and correct:

 

(a)           the representations and warranties of
each Loan Party set forth in this Agreement and the other Loan Documents shall
be true and correct in all respects with the same effect as if then made
(except to the extent stated to relate to a specific earlier date, in which
case such representations and warranties shall be true and correct as of such earlier
date); and

 

(b)           no Event of Default or Unmatured
Event of Default shall have then occurred and be continuing.

 

12.2.2  Confirmatory Certificate. If requested
by the Administrative Agent or any Lender, the Administrative Agent shall
have received a certificate dated the date of such requested Loan or
Letter of Credit and signed by a duly authorized representative of the Company
as to the matters set out in Section 12.2.1 (it being understood that
each request by the Company for the making of a Loan or the issuance of a
Letter of Credit shall be deemed to constitute a representation and warranty by
the Company that the conditions precedent set forth in Section 12.2.1
will be satisfied at the time of the making of such Loan or the issuance of
such Letter of Credit), together with such other documents as the
Administrative Agent or any Lender may reasonably request in support thereof.

 

SECTION 13  EVENTS OF DEFAULT AND THEIR EFFECT.

 

13.1  Events of Default. Each of the
following shall constitute an Event of Default under this Agreement:

 

13.1.1  Non-Payment of the Loans, etc. Default
in the payment when due of the principal of any Loan; or default, and
continuance thereof for five days, in the payment when due of any interest,
fee, reimbursement obligation with respect to any Letter of Credit or other
amount payable by the Company hereunder or under any other Loan Document.

 

13.1.2  Non-Payment of Other Debt. Any default
shall occur under the terms applicable to any Debt of the Company or any
Subsidiary in an aggregate amount (for all such Debt so affected and including
undrawn committed or available amounts and amounts owing to all creditors under
any combined or syndicated credit arrangement) exceeding $2,500,000 and such
default shall (a) consist of the failure to pay such Debt when due (giving
effect to any applicable

 

59

 

grace period), whether by
acceleration or otherwise, or (b) accelerate the maturity of such Debt or
permit the holder or holders thereof, or any trustee or agent for such holder
or holders, to cause such Debt to become due and payable (or require the
Company or any Subsidiary to purchase or redeem such Debt or post cash
collateral in respect thereof) prior to its expressed maturity.

 

13.1.3  Other Material Obligations. Default in
the payment when due, or in the performance or observance of, any material
obligation of, or condition agreed to by, the Company or any Subsidiary with
respect to any material purchase or lease of goods or services where such
default, singly or in the aggregate with all other such defaults, would
reasonably be expected to have a Material Adverse Effect.

 

13.1.4  Bankruptcy, Insolvency, etc. The
Company or any Material Subsidiary becomes insolvent or generally fails to pay,
or admits in writing its inability or refusal to pay, debts as they become due;
or the Company or any Material Subsidiary applies for, consents to, or
acquiesces in the appointment of a trustee, receiver or other custodian for the
Company or such Material Subsidiary or any property thereof, or makes a general
assignment for the benefit of creditors; or, in the absence of such
application, consent or acquiescence, a trustee, receiver or other custodian is
appointed for the Company or any Material Subsidiary or for a substantial part
of the property of any thereof and is not discharged within 60 days; or any
bankruptcy, reorganization, debt arrangement, or other case or proceeding under
any bankruptcy or insolvency law, or any dissolution or liquidation proceeding,
is commenced in respect of the Company or any Material Subsidiary, and if such
case or proceeding is not commenced by the Company or such Material Subsidiary,
it is consented to or acquiesced in by the Company or such Material Subsidiary,
or remains for 60 days undismissed; or the Company or any Material Subsidiary
takes any action to authorize, or in furtherance of, any of the foregoing.

 

13.1.5  Non-Compliance with Loan Documents.
(a) Failure by any Loan Party to comply with or to perform any covenant set
forth in Sections 10.1.5, or 10.5(a) (with respect to the
existence of the Company only) or Section 11; (b) failure by any
Loan Party to comply with or perform any covenant set forth in Section
10.3(b) and continuance of such failure for 10 days; or (c) failure by any
Loan Party to comply with or to perform any other provision of this Agreement
or any other Loan Document (and not constituting an Event of Default under any
other provision of this Section 13) and continuance of such failure for
30 days after the earlier of (i) the date that a Senior Officer of the Company
has knowledge thereof and (ii) the date that the Company receives notice
thereof from the Administrative Agent or any Lender.

 

13.1.6  Representations; Warranties. Any
representation or warranty made by any Loan Party herein or any other Loan
Document is breached or is false or misleading in any material respect, or any
schedule, certificate, financial statement, report, notice or other writing
furnished by any Loan Party to the Administrative Agent or any Lender in
connection herewith is false or misleading in any material respect on the date
as of which the facts therein set forth are stated or certified.

 

13.1.7  Pension Plans. (a) Any Person
institutes steps to terminate a Pension Plan if as a result of such termination
the Company or any member of the Controlled Group could be required to make a
contribution to such Pension Plan, or could incur a liability or obligation to

 

60

 

such Pension Plan, in
excess of $1,000,000; (b) a contribution failure occurs with respect to
any Pension Plan sufficient to give rise to a Lien under Section 302(f) of
ERISA; (c) the Unfunded Liability exceeds twenty percent of the Total Plan
Liability, or (d) there shall occur any withdrawal or partial withdrawal
from a Multiemployer Pension Plan and the withdrawal liability (without
unaccrued interest) to Multiemployer Pension Plans as a result of such
withdrawal (including any outstanding withdrawal liability that the Company or
any member of the Controlled Group have incurred on the date of such
withdrawal) exceeds $2,500,000.

 

13.1.8  Judgments. Final judgments which
exceed an aggregate of $2,500,000 shall be rendered against the Company or any
Subsidiary and shall not have been paid, discharged or vacated or had execution
thereof stayed pending appeal within 30 days after entry or filing of such
judgments.

 

13.1.9  Invalidity of Collateral Documents, etc. Any
Collateral Document shall cease to be in full force and effect; or any Loan
Party (or any Person by, through or on behalf of any Loan Party) shall contest
in any manner the validity, binding nature or enforceability of any Collateral
Document.

 

13.1.10   Change of Control. A Change of
Control shall occur.

 

13.1.11  Loss of Customers. The cancellation of
contracts that have generated, or loss of a single customer (or a group of
related customers) that have accounted for, more than 30% of total revenues of
the Company and its consolidated Subsidiaries during the most recent period of
12 months for which financial information is available.

 

13.2  Effect of Event of Default. If any
Event of Default described in Section 13.1.4 shall occur in respect of
the Company, the Commitments shall immediately terminate and the Loans and all
other Obligations hereunder shall become immediately due and payable and the
Company shall become immediately obligated to Cash Collateralize all Letters of
Credit, all without presentment, demand, protest or notice of any kind; and, if
any other Event of Default shall occur and be continuing, the Administrative
Agent may (and, upon the written request of the Required Lenders shall) declare
the Commitments to be terminated in whole or in part and/or declare all or any
part of the Loans and all other Obligations hereunder to be due and payable
and/or demand that the Company immediately Cash Collateralize all or any
Letters of Credit, whereupon the Commitments shall immediately terminate (or be
reduced, as applicable) and/or the Loans and other Obligations hereunder shall
become immediately due and payable (in whole or in part, as applicable) and/or
the Company shall immediately become obligated to Cash Collateralize the
Letters of Credit (all or any, as applicable), all without presentment, demand,
protest or notice of any kind. The Administrative Agent shall promptly advise
the Company of any such declaration, but failure to do so shall not impair the
effect of such declaration. Any cash collateral delivered hereunder shall be
held by the Administrative Agent (without liability for interest thereon) and
applied to the Obligations arising in connection with any drawing under a
Letter of Credit. After the expiration or termination or Cash Collateralization
of all Letters of Credit, such cash collateral shall be applied by the
Administrative Agent to any remaining Obligations hereunder and any excess
shall be delivered to the Company or as a court of competent jurisdiction may
elect.

 

61

 

SECTION 14  THE AGENT.

 

14.1  Appointment and Authorization. Each
Lender hereby irrevocably (subject to Section 14.10) appoints,
designates and authorizes the Administrative Agent to take such action on its
behalf under the provisions of this Agreement and each other Loan Document and
to exercise such powers and perform such duties as are expressly delegated to
it by the terms of this Agreement or any other Loan Document, together with
such powers as are reasonably incidental thereto. Notwithstanding any provision
to the contrary contained elsewhere in this Agreement or in any other Loan
Document, the Administrative Agent shall not have any duty or responsibility
except those expressly set forth herein, nor shall the Administrative Agent
have or be deemed to have any fiduciary relationship with any Lender or
participant, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Loan
Document or otherwise exist against the Administrative Agent. Without limiting
the generality of the foregoing sentence, the use of the term “agent” herein
and in other Loan Documents with reference to the Administrative Agent is not
intended to connote any fiduciary or other implied (or express) obligations arising
under agency doctrine of any applicable law. Instead, such term is used merely
as a matter of market custom, and is intended to create or reflect only an
administrative relationship between independent contracting parties.

 

14.2  Issuing Lender. The Issuing Lender
shall act on behalf of the Lenders (according to their Revolving Percentages)
with respect to any Letters of Credit issued by it and the documents associated
therewith. The Issuing Lender shall have all of the benefits and immunities (a)
provided to the Administrative Agent in this Section 14 with respect to
any acts taken or omissions suffered by the Issuing Lender in connection with
Letters of Credit issued by it or proposed to be issued by it and the
applications and agreements for letters of credit pertaining to such Letters of
Credit as fully as if the term “Administrative Agent”, as used in this Section
14, included the Issuing Lender with respect to such acts or omissions and
(b) as additionally provided in this Agreement with respect to the Issuing
Lender.

 

14.3  Delegation of Duties. The
Administrative Agent may execute any of its duties under this Agreement or any
other Loan Document by or through agents, employees or attorneys-in-fact and
shall be entitled to advice of counsel and other consultants or experts
concerning all matters pertaining to such duties. The Administrative Agent
shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful
misconduct.

 

14.4  Exculpation of Administrative Agent.
None of the Administrative Agent nor any of its directors, officers, employees
or agents shall (a) be liable for any action taken or omitted to be taken by
any of them under or in connection with this Agreement or any other Loan
Document or the transactions contemplated hereby (except to the extent
resulting from its own gross negligence or willful misconduct in connection
with its duties expressly set forth herein as determined by a final, nonappealable
judgment by a court of competent jurisdiction), or (b) be responsible in any
manner to any Lender or participant for any recital, statement, representation
or warranty made by the Company or any Subsidiary or Affiliate thereof, or any
officer thereof, contained in this Agreement or in any other Loan Document, or
in any certificate, report, statement or other document referred to or provided
for in, or received by the Administrative Agent under or in connection with,
this Agreement or any other Loan Document, or the validity,

 

62

 

effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document (or the creation, perfection or priority of any Lien or security
interest therein), or for any failure of the Company or any other party to any
Loan Document to perform its Obligations hereunder or thereunder. The
Administrative Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of the Company or any
of the Company’s Subsidiaries or Affiliates.

 

14.5  Reliance by Administrative Agent. The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, electronic mail message,
affidavit, letter, telegram, facsimile, telex or telephone message, statement
or other document or conversation believed by it to be genuine and correct and
to have been signed, sent or made by the proper Person or Persons, and upon
advice and statements of legal counsel (including counsel to the Company),
independent accountants and other experts selected by the Administrative Agent.
The Administrative Agent shall be fully justified in failing or refusing to
take any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, confirmation from the Lenders of their
obligation to indemnify the Administrative Agent against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such action. The Administrative Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement or any
other Loan Document in accordance with a request or consent of the Required
Lenders and such request and any action taken or failure to act pursuant
thereto shall be binding upon each Lender. For purposes of determining
compliance with the conditions specified in Section 12, each Lender
that has signed this Agreement shall be deemed to have consented to, approved
or accepted or to be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to a
Lender unless the Administrative Agent shall have received written notice from
such Lender prior to the proposed Closing Date specifying its objection
thereto.

 

14.6  Notice of Default. The Administrative
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Event of Default or Unmatured Event of Default except with respect to defaults
in the payment of principal, interest and fees required to be paid to the
Administrative Agent for the account of the Lenders, unless the Administrative
Agent shall have received written notice from a Lender or the Company referring
to this Agreement, describing such Event of Default or Unmatured Event of
Default and stating that such notice is a “notice of default”. The
Administrative Agent will notify the Lenders of its receipt of any such notice.
The Administrative Agent shall take such action with respect to such Event of
Default or Unmatured Event of Default as may be requested by the Required
Lenders in accordance with Section 13; provided that unless and
until the Administrative Agent has received any such request, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Event of Default or
Unmatured Event of Default as it shall deem advisable or in the best interest
of the Lenders.

 

14.7  Credit Decision. Each Lender
acknowledges that the Administrative Agent has not made any representation or
warranty to it, and that no act by the Administrative Agent hereafter taken,
including any consent and acceptance of any assignment or review of the affairs
of the

 

63

 

Company and its
Subsidiaries, shall be deemed to constitute any representation or warranty by
the Administrative Agent to any Lender as to any matter, including whether the
Administrative Agent has disclosed material information in its possession. Each
Lender represents to the Administrative Agent that it has, independently and
without reliance upon the Administrative Agent and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, prospects, operations, property, financial and
other condition and creditworthiness of the Company and its Subsidiaries, and
made its own decision to enter into this Agreement and to extend credit to the
Company hereunder. Each Lender also represents that it will, independently and
without reliance upon the Administrative Agent and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigations as
it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the Company.
Except for notices, reports and other documents expressly herein required to be
furnished to the Lenders by the Administrative Agent, the Administrative Agent
shall not have any duty or responsibility to provide any Lender with any credit
or other information concerning the business, prospects, operations, property,
financial or other condition or creditworthiness of the Company which may come
into the possession of the Administrative Agent.

 

14.8  Indemnification. Whether or not the
transactions contemplated hereby are consummated, each Lender shall indemnify
upon demand the Administrative Agent and its directors, officers, Affiliates,
employees and agents (to the extent not reimbursed by or on behalf of the
Company and without limiting the obligation of the Company to do so), according
to its Pro Rata Share, from and against any and all Indemnified Liabilities; provided
that no Lender shall be liable for any payment to any such Person of any
portion of the Indemnified Liabilities to the extent determined by a final,
nonappealable judgment by a court of competent jurisdiction to have resulted
from the applicable Person’s own gross negligence or willful misconduct. No
action taken in accordance with the directions of the Required Lenders shall be
deemed to constitute gross negligence or willful misconduct for purposes of
this Section. Without limitation of the foregoing, each Lender shall reimburse
the Administrative Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including Attorney Costs and Taxes) incurred by the
Administrative Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, any other Loan Document, or
any document contemplated by or referred to herein, to the extent that the
Administrative Agent is not reimbursed for such expenses by or on behalf of the
Company. The undertaking in this Section shall survive repayment of the Loans,
cancellation of the Notes, expiration or termination of the Letters of Credit,
any foreclosure under, or modification, release or discharge of, any or all of
the Collateral Documents, termination of this Agreement and the resignation or
replacement of the Administrative Agent.

 

14.9  Administrative Agent in Individual
Capacity. LaSalle and its Affiliates may make loans to, issue letters of
credit for the account of, accept deposits from, acquire equity interests in
and generally engage in any kind of banking, trust, financial advisory,
underwriting or other business with the Company and its Subsidiaries and
Affiliates as though LaSalle were not the Administrative Agent hereunder and
without notice to or consent of any Lender. Each Lender

 

64

 

acknowledges that,
pursuant to such activities, LaSalle or its Affiliates may receive information
regarding the Company or its Affiliates (including information that may be
subject to confidentiality obligations in favor of the Company or such
Affiliate) and acknowledge that the Administrative Agent shall be under no
obligation to provide such information to them. With respect to their Loans (if
any),  LaSalle and its Affiliates shall
have the same rights and powers under this Agreement as any other Lender and
may exercise the same as though LaSalle were not the Administrative Agent, and
the terms “Lender” and “Lenders” include LaSalle and its Affiliates, to the
extent applicable, in their individual capacities.

 

14.10  Successor Administrative Agent. The
Administrative Agent may resign as Administrative Agent upon 30 days’ notice to
the Lenders. If the Administrative Agent resigns under this Agreement, the
Required Lenders shall, with (so long as no Event of Default exists) the
consent of the Company (which shall not be unreasonably withheld or delayed),
appoint from among the Lenders a successor agent for the Lenders. If no
successor agent is appointed prior to the effective date of the resignation of
the Administrative Agent, the Administrative Agent may appoint, after
consulting with the Lenders and the Company, a successor agent from among the
Lenders. Upon the acceptance of its appointment as successor agent hereunder,
such successor agent shall succeed to all the rights, powers and duties of the
retiring Administrative Agent and the term “Administrative Agent” shall mean
such successor agent, and the retiring Administrative Agent’s appointment,
powers and duties as Administrative Agent shall be terminated. After any
retiring Administrative Agent’s resignation hereunder as Administrative Agent,
the provisions of this Section 14 and Sections 15.5 and 15.16
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. If no successor agent
has accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above.

 

14.11  Collateral Matters. The Lenders
irrevocably authorize the Administrative Agent, at its option and in its
discretion, (a) to release any Lien granted to or held by the Administrative
Agent under any Collateral Document (i) upon termination of the Commitments and
payment in full of all Loans and all other obligations of the Company hereunder
and the expiration or termination or Cash Collateralization of all Letters of
Credit; (ii) constituting property sold or to be sold or disposed of as part of
or in connection with any disposition permitted hereunder; or (iii) subject to Section
15.1, if approved, authorized or ratified in writing by the Required
Lenders; or (b) to subordinate its interest in any Collateral to any holder of
a Lien on such Collateral which is permitted by Section 11.2(d)(i) or (d)(iii)  (it being understood that the Administrative
Agent may conclusively rely on a certificate from the Company in determining
whether the Debt secured by any such Lien is permitted by Section 11.1(b)).
Upon request by the Administrative Agent at any time, the Lenders will confirm
in writing the Administrative Agent’s authority to release, or subordinate its
interest in, particular types or items of Collateral pursuant to this Section
14.11.

 

14.12  Administrative Agent May File Proofs of
Claim. In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition
or other judicial proceeding relative to the Company or any Subsidiary, the

 

65

 

Administrative Agent
(irrespective of whether the principal of any Loan shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective of whether
the Administrative Agent shall have made any demand on the Company) shall be
entitled and empowered, by intervention in such proceeding or otherwise:

 

(a)           to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the
Loans, and all other Obligations that are owing and unpaid and to file such
other documents as may be necessary or advisable in order to have the claims of
the Lenders and the Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Lenders
and the Administrative Agent and their respective agents and counsel and all
other amounts due the Lenders and the Administrative Agent under Sections 5,
15.5 and 15.17) allowed in such judicial proceedings; and

 

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

 

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such
judicial proceeding is hereby authorized by each Lender to make such payments
to the Administrative Agent and, in the event that the Administrative Agent
shall consent to the making of such payments directly to the Lenders, to pay to
the Administrative Agent any amount due for the reasonable compensation,
expenses, disbursements and advances of the Administrative Agent and its agents
and counsel, and any other amounts due the Administrative Agent under Sections
5, 15.5 and 15.17.

 

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

 

14.13 Other
Agents; Arrangers and Managers. None of the Lenders or other Persons
identified on the facing page or signature pages of this Agreement as a
“syndication agent”, “documentation agent”, “sole book runner” or “sole
arranger”, if any, shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than, in the case of such
Lenders, those applicable to all Lenders as such. Without limiting the
foregoing, none of the Lenders or other Persons so identified shall have or be
deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders
or other Persons so identified in deciding to enter into this Agreement or in
taking or not taking action hereunder.

 

SECTION 15  GENERAL.

 

15.1  Waiver; Amendments. No delay on the
part of the Administrative Agent or any Lender in the exercise of any right,
power or remedy shall operate as a waiver thereof, nor shall any single or
partial exercise by any of them of any right, power or remedy preclude other or
further exercise thereof, or the exercise of any other right, power or remedy.
No amendment, modification or waiver of, or consent with respect to, any
provision of this Agreement or the

 

66

 

other Loan Documents
shall in any event be effective unless the same shall be in writing and
acknowledged by Lenders having an aggregate Pro Rata Shares of not less than
the aggregate Pro Rata Shares expressly designated herein with respect thereto
or, in the absence of such designation as to any provision of this Agreement,
by the Required Lenders, and then any such amendment, modification, waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given. No amendment, modification, waiver or consent shall
(a) extend or increase the Commitment of any Lender without the written consent
of such Lender, (b) extend the date scheduled for payment of any principal
(excluding mandatory prepayments) of or interest on the Loans or any fees payable
hereunder without the written consent of each Lender directly affected thereby,
(c) reduce the principal amount of any Loan, the rate of interest thereon or
any fees payable hereunder, without the consent of each Lender directly
affected thereby (except for periodic adjustments of interest rates and fees
resulting from a change in the Applicable Margin as provided for in this
Agreement); or (d) release all or substantially all parties from their
respective obligations under the Guaranty and Collateral Agreement or all or
any substantial part of the Collateral granted under the Collateral Documents,
change the definition of Required Lenders, any provision of this Section
15.1 or reduce the aggregate Pro Rata Share required to effect an
amendment, modification, waiver or consent, without, in each case, the written
consent of all Lenders. No provision of Sections 6.2.2 or 6.3
with respect to the timing or application of mandatory prepayments of the Loans
shall be amended, modified or waived without the consent of Lenders having Term
Percentages exceeding 50%. No provision of Section 14 or other provision
of this Agreement affecting the Administrative Agent in its capacity as such
shall be amended, modified or waived without the consent of the Administrative
Agent. No provision of this Agreement relating to the rights or duties of the
Issuing Lender in its capacity as such shall be amended, modified or waived
without the consent of the Issuing Lender. No provision of this Agreement
relating to the rights or duties of the Swing Line Lender in its capacity as
such shall be amended, modified or waived without the consent of the Swing Line
Lender.

 

15.2  Confirmations. The Company and each
holder of a Note agree from time to time, upon written request received by it
from the other, to confirm to the other in writing (with a copy of each such
confirmation to the Administrative Agent) the aggregate unpaid principal amount
of the Loans then outstanding under such Note.

 

15.3  Notices. Except as otherwise provided
in Sections 2.2.2 and 2.2.3, all notices hereunder shall be
in writing (including facsimile transmission) and shall be sent to the
applicable party at its address shown on Annex B or at such other
address as such party may, by written notice received by the other parties,
have designated as its address for such purpose. Notices sent by facsimile
transmission shall be deemed to have been given when sent; notices sent by mail
shall be deemed to have been given three Business Days after the date when sent
by registered or certified mail, postage prepaid; and notices sent by hand
delivery or overnight courier service shall be deemed to have been given when
received. For purposes of Sections 2.2.2 and 2.2.3, the
Administrative Agent shall be entitled to rely on telephonic instructions from
any person that the Administrative Agent in good faith believes is an
authorized officer or employee of the Company, and the Company shall hold the
Administrative Agent and each other Lender harmless from any loss, cost or
expense resulting from any such reliance.

 

67

 

15.4  Computations. Where the character or
amount of any asset or liability or item of income or expense is required
to be determined, or any consolidation or other accounting computation is
required to be made, for the purpose of this Agreement, such determination or
calculation shall, to the extent applicable and except as otherwise specified
in this Agreement, be made in accordance with GAAP, consistently applied; provided
that if the Company notifies the Administrative Agent that the Company wishes
to amend any covenant in Section 10 or Section 11.11 (or any
related definition) to eliminate or to take into account the effect of any
change in GAAP on the operation of such covenant (or if the Administrative
Agent notifies the Company that the Required Lenders wish to amend Section
10 or Section 11.11 (or any related definition) for such purpose),
then the Company’s compliance with such covenant shall be determined on the
basis of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant (or related
definition) is amended in a manner satisfactory to the Company and the Required
Lenders.

 

15.5  Costs, Expenses and Taxes. The Company
agrees to pay on demand all reasonable out-of-pocket costs and expenses of the
Administrative Agent (including Attorney Costs and any Taxes) in connection
with the preparation, execution, syndication, delivery and administration
(including perfection and protection of any Collateral and the costs of
Intralinks (or other similar service), if applicable) of this Agreement, the
other Loan Documents and all other documents provided for herein or delivered
or to be delivered hereunder or in connection herewith (including any
amendment, supplement or waiver to any Loan Document), whether or not the
transactions contemplated hereby or thereby shall be consummated, and all
reasonable out-of-pocket costs and expenses (including Attorney Costs and any
Taxes) incurred by the Administrative Agent and each Lender after an Event of
Default in connection with the collection of the Obligations or the enforcement
of this Agreement the other Loan Documents or any such other documents or
during any workout, restructuring or negotiations in respect thereof. In
addition, the Company agrees to pay, and to save the Administrative Agent and
the Lenders harmless from all liability for, any fees of the Company’s auditors
in connection with any reasonable exercise by the Administrative Agent and the
Lenders of their rights pursuant to Section 10.2. All Obligations
provided for in this Section 15.5 shall survive repayment of the Loans,
cancellation of the Notes, expiration or termination of the Letters of Credit
and termination of this Agreement.

 

15.6  Assignments; Participations.

 

15.6.1  Assignments. (a)  Any Lender may at any time assign to one or
more Persons (any such Person, an “Assignee”) all or any portion of such
Lender’s Loans and Commitments, with the prior written consent of the
Administrative Agent, the Issuing Lender (for an assignment of any Revolving
Loan or any Revolving Commitment) and, so long as no Event of Default exists,
the Company (which consents shall not be unreasonably withheld or delayed and
shall not be required for an assignment by a Lender to a Lender or an Affiliate
of a Lender). Except as the Administrative Agent may otherwise agree, any such
assignment shall be in a minimum aggregate amount equal to $5,000,000 or, if
less, the remaining Commitment and Loans held by the assigning Lender. The
Company and the Administrative Agent shall be entitled to continue to deal
solely and directly with such Lender in connection with the interests so
assigned to an Assignee until the Administrative Agent shall have received and
accepted an effective assignment agreement in substantially the form of Exhibit
C hereto (an “Assignment

 

68

 

Agreement”)
executed, delivered and fully completed by the applicable parties thereto and a
processing fee of $3,500. No assignment may be made to any Person if at the
time of such assignment the Company would be obligated to pay any greater
amount under Sections 7.6 or 8 to the Assignee than the Company
is then obligated to pay to the assigning Lender under such Sections (and if
any assignment is made in violation of the foregoing, the Company will not be
required to pay such greater amounts). Any attempted assignment not made in
accordance with this Section 15.6.1 shall be treated as the sale of a
participation under Section 15.6.2. The Company shall be deemed to have
granted its consent to any assignment requiring its consent hereunder unless
the Company has expressly objected to such assignment within three Business
Days after notice thereof.

 

(b)           From and after the date on which the
conditions described above have been met, (i) such Assignee shall be deemed
automatically to have become a party hereto and, to the extent that rights and
obligations hereunder have been assigned to such Assignee pursuant to such
Assignment Agreement, shall have the rights and obligations of a Lender
hereunder and (ii) the assigning Lender, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment
Agreement, shall be released from its rights (other than its indemnification
rights) and obligations hereunder. Upon the request of the Assignee (and, as
applicable, the assigning Lender) pursuant to an effective Assignment
Agreement, the Company shall execute and deliver to the Administrative Agent
for delivery to the Assignee (and, as applicable, the assigning Lender) a Note.
Each such Note shall be dated the effective date of such assignment. Upon
receipt by the assigning Lender of such Note, the assigning Lender shall return
to the Company any prior Note held by it.

 

(c)           Any Lender may at any time pledge or
assign a security interest in all or any portion of its rights under this
Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section
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.

 

15.6.2  Participations. Any Lender may at any
time sell to one or more Persons participating interests in its Loans,
Commitments or other interests hereunder (any such Person, a “Participant”).
In the event of a sale by a Lender of a participating interest to a
Participant, (a) such Lender’s obligations hereunder shall remain unchanged for
all purposes, (b) the Company and the Administrative Agent shall continue to
deal solely and directly with such Lender in connection with such Lender’s
rights and obligations hereunder and (c) all amounts payable by the
Company shall be determined as if such Lender had not sold such participation
and shall be paid directly to such Lender. No Participant shall have any direct
or indirect voting rights hereunder except with respect to any event described
in Section 15.1 expressly requiring the unanimous vote of all
Lenders or, as applicable, all affected Lenders. Each Lender agrees to
incorporate the requirements of the preceding sentence into each participation
agreement which such Lender enters into with any Participant. The Company
agrees that if amounts outstanding under this Agreement are due and payable (as
a result of acceleration or otherwise), each Participant shall be deemed to
have the right of set-off in respect of its participating interest in amounts
owing under this Agreement and with respect to any Letter of Credit to the same
extent as if the amount of its participating interest were owing directly to it
as a Lender under this

 

69

 

Agreement; provided
that such right of set-off shall be subject to the obligation of each
Participant to share with the Lenders, and the Lenders agree to share with each
Participant, as provided in Section 7.5. The Company also agrees that
each Participant shall be entitled to the benefits of Section 7.6 or 8
as if it were a Lender (provided that on the date of the participation
no Participant shall be entitled to any greater compensation pursuant to Section
7.6 or 8 than would have been paid to the participating Lender on
such date if no participation had been sold and that each Participant complies
with Section 7.6(d) as if it were an Assignee).

 

15.7  Register. The Administrative Agent
shall maintain a copy of each Assignment Agreement delivered and accepted by it
and register (the “Register”) for the recordation of names and addresses
of the Lenders and the Commitment of each Lender from time to time and whether
such Lender is the original Lender or the Assignee. No assignment shall be
effective unless and until the Assignment Agreement is accepted and registered
in the Register. All records of transfer of a Lender’s interest in the Register
shall be conclusive, absent manifest error, as to the ownership of the
interests in the Loans. The Administrative Agent shall not incur any liability
of any kind with respect to any Lender with respect to the maintenance of the
Register.

 

15.8  GOVERNING LAW.
THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND
TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES.

 

15.9  Confidentiality. As required by federal law and the Administrative
Agent’s policies and practices, the Administrative Agent may need to obtain,
verify, and record certain
customer identification information and documentation in connection with
opening or maintaining accounts, or establishing or continuing to provide
services. The Administrative Agent and each Lender agree to use
commercially reasonable efforts (equivalent to the efforts the Administrative
Agent or such Lender applies to maintain the confidentiality of its own
confidential information) to maintain as confidential all information provided
to them by the Company or any Subsidiary, except that the Administrative Agent
and each Lender may disclose such information (a) to Persons employed or engaged
by the Administrative Agent or such Lender in evaluating, approving,
structuring or administering the Loans and the Commitments; (b) to any assignee
or participant or potential assignee or participant that has agreed to comply
with the covenant contained in this Section 15.9 (and any such assignee
or participant or potential assignee or participant may disclose such
information to Persons employed or engaged by them as described in clause
(a) above); (c) as required or requested by any federal or state regulatory
authority or examiner, or any insurance industry association, or as reasonably
believed by the Administrative Agent or such Lender to be compelled by any
court decree, subpoena or legal or administrative order or process; (d) as, on
the advice of the Administrative Agent’s or such Lender’s counsel, is required
by law; (e) in connection with the exercise of any right or remedy under the
Loan Documents or in connection with any litigation to which the Administrative
Agent or such Lender is a party; (f) to any nationally recognized rating agency
that requires access to information about a Lender’s investment portfolio in
connection with ratings issued with respect to such Lender; (g) to any
Affiliate of the Administrative Agent, the Issuing Lender or any other Lender
that may provide Bank Products to the Company or any Subsidiary; or (h) that
ceases to

 

70

 

be confidential through
no fault of the Administrative Agent or any Lender. Notwithstanding the
foregoing, the Company consents to the publication by the Administrative Agent
or any Lender of a tombstone or similar advertising material relating to the
financing transactions contemplated by this Agreement, and the Administrative
Agent reserves the right to provide to industry trade organizations information
necessary and customary for inclusion in league table measurements.

 

15.10  Severability. Whenever possible each
provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining
provisions of this Agreement. All obligations of the Company and rights of the
Administrative Agent and the Lenders expressed herein or in any other Loan
Document shall be in addition to and not in limitation of those provided by applicable
law.

 

15.11  Nature of Remedies. All Obligations of
the Company and rights of the Administrative Agent and the Lenders expressed
herein or in any other Loan Document shall be in addition to and not in
limitation of those provided by applicable law. No failure to exercise and no
delay in exercising, on the part of the Administrative Agent or any Lender, any
right, remedy, power or privilege hereunder, shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege.

 

15.12  Entire Agreement. This Agreement,
together with the other Loan Documents, embodies the entire agreement and understanding
among the parties hereto and supersedes all prior or contemporaneous agreements
and understandings of such Persons, verbal or written, relating to the subject
matter hereof and thereof (except as relates to the fees described in Section
5.3) and any prior arrangements made with respect to the payment by the
Company of (or any indemnification for) any fees, costs or expenses payable to
or incurred (or to be incurred) by or on behalf of the Administrative Agent or
the Lenders.

 

15.13  Counterparts. This Agreement may be
executed in any number of counterparts and by the different parties hereto
on separate counterparts and each such counterpart shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same
Agreement. Receipt of an executed signature page to this Agreement by facsimile
or other electronic transmission shall constitute effective delivery thereof.
Electronic records of executed Loan Documents maintained by the Lenders shall
deemed to be originals.

 

15.14  Successors and Assigns. This Agreement
shall be binding upon the Company, the Lenders and the Administrative
Agent and their respective successors and assigns, and shall inure to the
benefit of the Company, the Lenders and the Administrative Agent and the
successors and assigns of the Lenders and the Administrative Agent. No other
Person shall be a direct or indirect legal beneficiary of, or have any direct
or indirect cause of action or claim in connection with, this Agreement or any
of the other Loan Documents. The Company may not assign or transfer any of its
rights or Obligations under this Agreement without the prior written consent of
the Administrative Agent and each Lender.

 

71

 

15.15  Captions. Section captions used in
this Agreement are for convenience only and shall not affect the
construction of this Agreement.

 

15.16  Customer Identification - USA Patriot Act
Notice. Each
Lender and LaSalle (for itself and not on behalf of any other party) hereby
notifies the Loan Parties that, pursuant to the requirements of the USA Patriot
Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (the “Act”),
it is required to obtain, verify and record information that identifies the
Loan Parties, which information includes the name and address of the Loan
Parties and other information that will allow such Lender or LaSalle, as
applicable, to identify the Loan Parties in accordance with the Act.

 

15.17  INDEMNIFICATION BY THE COMPANY. IN CONSIDERATION
OF THE EXECUTION AND DELIVERY OF THIS AGREEMENT BY THE ADMINISTRATIVE AGENT AND
THE LENDERS AND THE AGREEMENT TO EXTEND THE COMMITMENTS PROVIDED HEREUNDER, THE
COMPANY HEREBY AGREES TO INDEMNIFY, EXONERATE AND HOLD THE ADMINISTRATIVE
AGENT, EACH LENDER AND EACH OF THE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES
AND AGENTS OF THE ADMINISTRATIVE AGENT AND EACH LENDER (EACH A “LENDER PARTY”)
FREE AND HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS, CAUSES OF ACTION,
SUITS, LOSSES, LIABILITIES, DAMAGES AND EXPENSES, INCLUDING ATTORNEY COSTS
(COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”), INCURRED BY THE LENDER
PARTIES OR ANY OF THEM AS A RESULT OF, OR ARISING OUT OF, OR RELATING TO (A)
ANY TENDER OFFER, MERGER, PURCHASE OF CAPITAL SECURITIES, PURCHASE OF ASSETS
(INCLUDING THE ADJOINED
ACQUISITION) OR OTHER SIMILAR TRANSACTION FINANCED OR PROPOSED TO BE
FINANCED IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, WITH THE PROCEEDS OF ANY
OF THE LOANS, (B) THE USE, HANDLING, RELEASE, EMISSION, DISCHARGE, TRANSPORTATION,
STORAGE, TREATMENT OR DISPOSAL OF ANY HAZARDOUS SUBSTANCE AT ANY PROPERTY OWNED
OR LEASED BY THE COMPANY  OR ANY
SUBSIDIARY, (C) ANY VIOLATION OF ANY ENVIRONMENTAL LAWS WITH RESPECT TO
CONDITIONS AT ANY PROPERTY OWNED OR LEASED BY THE COMPANY OR ANY SUBSIDIARY OR
THE OPERATIONS CONDUCTED THEREON, (D) THE INVESTIGATION, CLEANUP OR REMEDIATION
OF OFFSITE LOCATIONS AT WHICH THE COMPANY, ANY SUBSIDIARY OR ITS PREDECESSORS
ARE ALLEGED TO HAVE DIRECTLY OR INDIRECTLY DISPOSED OF HAZARDOUS SUBSTANCES OR
(E) THE EXECUTION, DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT BY ANY OF THE LENDER PARTIES, EXCEPT FOR ANY SUCH
INDEMNIFIED LIABILITIES ARISING ON ACCOUNT OF THE APPLICABLE LENDER PARTY’S
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL, NONAPPEALABLE
JUDGMENT BY A COURT OF COMPETENT JURISDICTION. IF AND TO THE EXTENT THAT THE
FOREGOING UNDERTAKING MAY BE UNENFORCEABLE FOR ANY REASON, THE COMPANY HEREBY
AGREES TO MAKE THE MAXIMUM CONTRIBUTION TO THE PAYMENT AND SATISFACTION OF EACH
OF THE INDEMNIFIED LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW. ALL
OBLIGATIONS PROVIDED FOR IN THIS SECTION 15.17 SHALL SURVIVE REPAYMENT
OF THE LOANS,

 

72

 

CANCELLATION OF THE
NOTES, EXPIRATION OR TERMINATION OF THE LETTERS OF CREDIT, ANY FORECLOSURE
UNDER, OR ANY MODIFICATION, RELEASE OR DISCHARGE OF, ANY OR ALL OF THE
COLLATERAL DOCUMENTS AND TERMINATION OF THIS AGREEMENT.

 

15.18  Nonliability of Lenders. The
relationship between the Company on the one hand and the Lenders and the
Administrative Agent on the other hand shall be solely that of borrower and
lender. Neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duty to the Company or any Subsidiary arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Company and its Subsidiaries, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, in connection herewith
or therewith is solely that of debtor and creditor. Neither the Administrative
Agent nor any Lender undertakes any responsibility to the Company or any
Subsidiary to review or inform the Company or any Subsidiary of any matter in
connection with any phase of the business or operations of the Company or any
Subsidiary. The Company agrees, on behalf of itself and each Subsidiary, that
neither the Administrative Agent nor any Lender shall have liability to the
Company  or any Subsidiary (whether sounding
in tort, contract or otherwise) for losses suffered by the Company or any
Subsidiary in connection with, arising out of, or in any way related to the
transactions contemplated and the relationship established by the Loan
Documents, or any act, omission or event occurring in connection therewith,
unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or
willful misconduct of the party from which recovery is sought. NO LENDER PARTY
SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY OTHERS OF ANY
INFORMATION OR OTHER MATERIALS OBTAINED THROUGH INTRALINKS OR OTHER SIMILAR
INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT, NOR SHALL
ANY LENDER PARTY HAVE ANY LIABILITY WITH RESPECT TO, AND THE COMPANY ON BEHALF
OF ITSELF AND EACH SUBSIDIARY, HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE
FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ARISING OUT OF ITS
ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER THE
CLOSING DATE). The Company acknowledges that it has been advised by counsel in
the negotiation, execution and delivery of this Agreement and the other Loan
Documents to which it is a party. No joint venture is created hereby or by the
other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Company, any Subsidiary and
the Lenders

 

15.19  FORUM SELECTION AND
CONSENT TO JURISDICTION. ANY LITIGATION BASED HEREON, OR ARISING OUT
OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT,
SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF
ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
ILLINOIS; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR
OPERATE TO PRECLUDE THE ADMINISTRATIVE AGENT FROM BRINGING SUIT OR TAKING OTHER
LEGAL ACTION IN ANY OTHER JURISDICTION. THE COMPANY HEREBY EXPRESSLY

 

73

 

AND
IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS
AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS
FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. THE COMPANY FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS. THE
COMPANY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO
ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.

 

15.20  WAIVER OF JURY TRIAL.
EACH OF THE COMPANY, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY WAIVES ANY
RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT AND ANY
AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE
FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY
LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND
AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY.

 

[Signature Pages Follow]

 

74

 

The parties
hereto have caused this Agreement to be duly executed and delivered by their
duly authorized officers as of the date first set forth above.

 

	
   

  	
  KANBAY
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/
  William Weissman

  
	
   

  	
  Name:

  	
     William
  Weissman

  
	
   

  	
  Title:

  	
     Chief
  Financial Officer

  

 

 

	
   

  	
  LASALLE
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Administrative Agent, as Issuing Lender and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/
  Daniel E. Sullivan, Jr.

  
	
   

  	
  Name:

  	
     Daniel
  E. Sullivan, Jr.

  
	
   

  	
  Title:

  	
     1st
  Vice President

  

 

 

ANNEX A

 

LENDERS AND PRO RATA SHARES

 

	
  Lender

  	
   

  	
  Revolving

  Commitment

  	
   

  	
  Revolving

  Percentage

  	
   

  	
  Term

  Commitment

  	
   

  	
  Term

  Percentage

  	
   

  	
  Pro Rata Share

  	
   

  
	
  LaSalle Bank N.A.

  	
   

  	
  $

  	
  75,000,000.00

  	
   

  	
  100

  	
  %

  	
  $

  	
  50,000,000.00

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  TOTALS

  	
   

  	
  $

  	
  75,000,000.00

  	
   

  	
  100

  	
  %

  	
  $

  	
  50,000,000.00

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  

 

 

ANNEX B

 

ADDRESSES FOR NOTICES

 

KANBAY
INTERNATIONAL, INC.

 

6400
Shafer Court

Rosemont,
Illinois 60018

Attention:
David Faller

Telephone:
847-384-6148

Facsimile: 847-318-1589

 

LASALLE
BANK NATIONAL ASSOCIATION, as Administrative Agent, Issuing Lender and a Lender

 

Notices
of Borrowing, Conversion, Continuation and Letter of Credit Issuance

 

135
South LaSalle Street

Chicago, Illinois 60603

Attention: Armecia Bracey

Telephone: 312-904-2223

Facsimile:  312-904-4448

 

All
Other Notices

 

135
South LaSalle Street

Chicago, Illinois 60603

Attention: Daniel E. Sullivan, Jr.

Telephone: 312-904-5346

Facsimile:  312-904-6150

 

 

EXHIBIT A

 

FORM OF

NOTE

 

,
20     

 

The
undersigned, for value received, promises to pay to the order of
              
(the “Lender”) at the principal office of LaSalle Bank National
Association (the “Administrative Agent”) in Chicago, Illinois the
aggregate unpaid amount of all Loans made to the undersigned by the Lender
pursuant to the Credit Agreement referred to below (as shown on the schedule attached
hereto (and any continuation thereof) or in the records of the Lender), such
principal amount to be payable on the dates set forth in the Credit Agreement.

 

The
undersigned further promises to pay interest on the unpaid principal amount of
each Loan from the date of such Loan until such Loan is paid in full, payable
at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments
of both principal and interest are to be made in lawful money of the United States
of America.

 

This
Note evidences indebtedness incurred under, and is subject to the terms and
provisions of, the Credit Agreement, dated as of March 9, 2006 (as
amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”; terms not otherwise defined herein are used herein as defined
in the Credit Agreement), among the undersigned, certain financial institutions
(including the Lender) and the Administrative Agent, to which Credit Agreement
reference is hereby made for a statement of the terms and provisions under
which this Note may or must be paid prior to its due date or its due date
accelerated.

 

[REMAINDER OF PAGE LEFT
BLANK - SIGNATURE ON NEXT PAGE]

 

 

This
Note is made under and governed by the laws of the State of Illinois applicable
to contracts made and to be performed entirely within such State.

 

	
   

  	
  KANBAY INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Title:

  

 

 

EXHIBIT B

 

FORM OF
COMPLIANCE CERTIFICATE

 

To:                              LaSalle Bank National Association, as
Administrative Agent

 

Please
refer to the Credit Agreement dated as of March 9,
2006 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”) among Kanbay International, Inc. (the
“Company”), various financial institutions and LaSalle Bank National
Association, as Administrative Agent. Terms used but not otherwise defined
herein are used herein as defined in the Credit Agreement.

 

I.                                                                                         Reports. Enclosed herewith is a copy of the [annual
audited/quarterly] report of the Company as at
             ,
     (the “Computation Date”), which report fairly presents
in all material respects the financial condition and results of operations [(subject to the absence of footnotes and to normal year-end
adjustments)] of the Company as of the Computation Date and has been
prepared in accordance with GAAP consistently applied.

 

II.                                                                                     Financial Tests. The Company hereby certifies and warrants
to you that the following is a true and correct computation as at the
Computation Date of the following ratios and/or financial restrictions
contained in the Credit Agreement:

 

[REVISE AS APPROPRIATE]

 

The
Company further certifies to you that no Event of Default or Unmatured Event of
Default has occurred and is continuing.

 

The
Company has caused this Certificate to be executed and delivered by its duly
authorized officer on          ,
    .

 

	
   

  	
  KANBAY INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Title:

  

 

 

EXHIBIT C

 

FORM OF

ASSIGNMENT AGREEMENT

 

Date:                 

 

To:                              Kanbay International, Inc.

 

and

 

LaSalle Bank National Association,
as Administrative Agent

 

Re:                               Assignment under the Credit Agreement
referred to below

 

Gentlemen and Ladies:

 

Please
refer to Section 15.6.1 of the Credit Agreement dated as of March 9,
2006 (as amended or otherwise modified from time to time, the “Credit
Agreement”) among
               
(the “Company”), various financial institutions and LaSalle Bank
National Association, as administrative agent (in such capacity, the “Administrative
Agent”). Unless otherwise defined herein or the context otherwise requires,
terms used herein have the meanings provided in the Credit Agreement.

 

(the
“Assignor”) hereby sells and assigns, without recourse, to (the “Assignee”),
and the Assignee hereby purchases and assumes from the Assignor, that interest
in and to the Assignor’s rights and obligations under the Credit Agreement as
of the date hereof equal to % of all of the Loans, of the participation
interests in the Letters of Credit and of the Commitments, such sale, purchase,
assignment and assumption to be effective as of  ,
   , or such later date on which the Company and the
Administrative Agent shall have consented hereto (the “Effective Date”).
After giving effect to such sale, purchase, assignment and assumption, the
Assignee’s and the Assignor’s respective Percentages for purposes of the Credit
Agreement will be as set forth opposite their names on the signature pages hereof.

 

The
Assignor hereby instructs the Administrative Agent to make all payments from
and after the Effective Date in respect of the interest assigned hereby
directly to the Assignee. The Assignor and the Assignee agree that all interest
and fees accrued up to, but not including, the Effective Date are the property
of the Assignor, and not the Assignee. The Assignee agrees that, upon receipt of
any such interest or fees, the Assignee will promptly remit the same to the
Assignor.

 

The
Assignor represents and warrants that it is the legal and beneficial owner of
the interest being assigned by it hereunder and that such interest is free and
clear of any adverse claim.

 

The
Assignee represents and warrants to the Company and the Administrative Agent
that, as of the date hereof, the Company will not be obligated to pay any
greater amount under Section 7.6 or 8 of the Credit Agreement than the
Company is obligated to pay to the Assignor under

 

 

such Section. [The Assignee has delivered, or is delivering
concurrently herewith, to the Company and the Administrative Agent the forms
required by Section 7.6 of the Credit Agreement.] [INSERT IF ASSIGNEE IS
ORGANIZED UNDER THE LAWS OF A JURISDICTION OTHER THAN THE UNITED STATES OF
AMERICA OR A STATE THEREOF.]  The
[Assignee/Assignor] [Borrower] shall pay the fee payable to the Administrative
Agent pursuant to Section 15.6.1.

 

The
Assignee hereby confirms that it has received a copy of the Credit Agreement.
Except as otherwise provided in the Credit Agreement, effective as of the
Effective Date:

 

(a)                                  the Assignee (i) shall be deemed
automatically to have become a party to the Credit Agreement and to have all the
rights and obligations of a “Lender” under the Credit Agreement as if it were
an original signatory thereto to the extent specified in the second paragraph
hereof; and (ii) agrees to be bound by the terms and conditions set forth
in the Credit Agreement as if it were an original signatory thereto; and

 

(b)                                 the Assignor shall be released from its
obligations under the Credit Agreement to the extent specified in the second
paragraph hereof.

 

The
Assignee hereby advises each of you of the following administrative details
with respect to the assigned Loans and Commitment:

 

(A)                              Institution Name:

 

Address:

 

Attention:

 

Telephone:

 

Facsimile:

 

(B)                                Payment Instructions:

 

This
Assignment shall be governed by and construed in accordance with the laws of
the State of Illinois

 

Please
evidence your receipt hereof and your consent to the sale, assignment, purchase
and assumption set forth herein by signing and returning counterparts hereof to
the Assignor and the Assignee.

 

 

	
  Percentage = %

  	
  [ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  Adjusted Percentage = %

  	
  [ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

ACKNOWLEDGED AND CONSENTED TO

this      day of
        ,     

 

LASALLE BANK NATIONAL ASSOCIATION, as Administrative Agent

 

 

	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

ACKNOWLEDGED AND CONSENTED TO

this     day of      ,

 

KANBAY INTERNATIONAL, INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

EXHIBIT D

 

FORM OF NOTICE OF
BORROWING

 

To:                              LaSalle Bank National Association, as
Administrative Agent

 

Please
refer to the Credit Agreement dated as of March 9, 2006 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among Kanbay International, Inc. (the “Company”),
various financial institutions and LaSalle Bank National Association, as
Administrative Agent. Terms used but not otherwise defined herein are used
herein as defined in the Credit Agreement.

 

The
undersigned hereby gives irrevocable notice, pursuant to Section 2.2.2
of the Credit Agreement, of a request hereby for a borrowing as follows:

 

(i)                                     The requested borrowing date for the proposed
borrowing (which is a Business Day) is
              ,
    .

 

(ii)                                  The aggregate amount of the proposed
borrowing is
$              .

 

(iii)                               The Type of Revolving Loans comprising the
proposed borrowing are [Base Rate] [LIBOR] Loans.

 

(iv)                              The duration of the Interest Period for each
LIBOR Loan made as part of the proposed borrowing, if applicable, is
            months
(which shall be 1, 2, 3 or 6 months).

 

The
undersigned hereby certifies that on the date hereof and on the date of
borrowing set forth above, and immediately after giving effect to the borrowing
requested hereby: (i) there exists and there shall exist no Unmatured
Event of Default or Event of Default under the Credit Agreement; and (ii) each
of the representations and warranties contained in the Credit Agreement and the
other Loan Documents is true and correct as of the date hereof, except to the
extent that such representation or warranty expressly relates to another date
and except for changes therein expressly permitted or expressly contemplated by
the Credit Agreement.

 

The
Company has caused this Notice of Borrowing to be executed and delivered by its
officer thereunto duly authorized on
           ,
      .

 

	
   

  	
  KANBAY INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

EXHIBIT E

 

FORM OF NOTICE OF
CONVERSION/CONTINUATION

 

To:                              LaSalle Bank National Association, as
Administrative Agent

 

Please
refer to the Credit Agreement dated as of March 9, 2006 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among Kanbay International, Inc. (the “Company”),
various financial institutions and LaSalle Bank National Association, as
Administrative Agent. Terms used but not otherwise defined herein are used
herein as defined in the Credit Agreement.

 

The
undersigned hereby gives irrevocable notice, pursuant to Section 2.2.3
of the Credit Agreement, of its request to:

 

(a)                                  on [ 
date  ] convert
$[        ] of the aggregate
outstanding principal amount of the
[       ] Loan, bearing interest at the
[        ] Rate, into a(n)
[        ] Loan [and, in the case of a
LIBOR Loan, having an Interest Period of [     ]
month(s)];

 

[(b)                             on [ 
date  ] continue
$[        ] of the aggregate
outstanding principal amount of the
[       ] Loan, bearing interest at the
LIBOR Rate, as a LIBOR Loan having an Interest Period of
[     ] month(s)].

 

The
undersigned hereby represents and warrants that all of the conditions contained
in Section 12.2 of the Credit Agreement have been satisfied on and as of
the date hereof, and will continue to be satisfied on and as of the date of the
conversion/continuation requested hereby, before and after giving effect
thereto.

 

The
Company has caused this Notice of Conversion/Continuation to be executed and
delivered by its officer thereunto duly authorized on
           ,
      .

 

	
   

  	
  KANBAY INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

EXHIBIT F

 

FORM OF INCREASE REQUEST

 

                           ,
20   

 

LaSalle
Bank National Association, as Administrative Agent

 under
the Credit Agreement referred to below

135
S. LaSalle Street

Chicago,
IL 60603

Attention: 
             

Ladies/Gentlemen:

 

Please refer to the
Credit Agreement dated as of March 9, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”) among
Kanbay International, Inc. (the “Company”), various financial
institutions and LaSalle Bank National Association, as Administrative Agent.
Capitalized terms used but not defined herein have the respective meanings set
forth in the Credit Agreement.

 

In accordance with Section 2.6
of the Credit Agreement, the Company hereby requests an increase in the
Revolving Commitment Amount from
$           to
$          . Such increase
shall be made by [increasing the Revolving Commitment of
             from
$         to
$        ] [adding
             
as an Additional Lender under the Credit Agreement with a Revolving Commitment
of $            ]
as set forth in the letter attached hereto. Such increase shall be effective
three Business Days after the date that the Administrative Agent acknowledges
receipt of the letter attached hereto or such other date as is agreed among the
Company, the Administrative Agent and the [increasing] [Additional] Lender.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  KANBAY INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

ANNEX 1 TO EXHIBIT F

 

[Date]

 

LaSalle Bank National
Association, as Administrative Agent

under the Credit Agreement referred to below

135
S. LaSalle Street

Chicago,
IL 60603

Attention: 
             

 

Ladies/Gentlemen:

 

Please refer to the
letter dated           ,
20   from Kanbay International, Inc. (the “Company”)
requesting an increase in the Revolving Commitment Amount from
$           to
$           pursuant to Section 2.6
of the Credit Agreement dated as of March 9, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”)
among the Company, various financial institutions and LaSalle Bank National
Association, as Administrative Agent. Capitalized terms used but not defined
herein have the respective meanings set forth in the Credit Agreement.

 

The undersigned hereby
confirms that it has agreed to increase its Revolving Commitment under the
Credit Agreement from
$           to
$           effective on the
date which is three Business Days after the acknowledgment of receipt hereof by
the Administrative Agent or on such other date as may be agreed among the
Company, the Administrative Agent and the undersigned.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF INCREASING LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

Receipt
acknowledged as of

             ,
20   

 

	
  LASALLE BANK NATIONAL ASSOCIATION, as Administrative Agent

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

ANNEX 2 TO EXHIBIT F

 

[Date]

 

LaSalle Bank National
Association, as Administrative Agent

under the Credit Agreement referred to below

135
S. LaSalle Street

Chicago,
IL 60603

Attention: 
             

 

Ladies/Gentlemen:

 

Please refer to the
letter dated           ,
20    from Kanbay International, Inc. (the “Company”)
requesting an increase in the Revolving Commitment Amount from
$           to
$           pursuant to Section 2.6
of the Credit Agreement dated as of March 9, 2006 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”)
among the Company, various financial institutions and LaSalle Bank National
Association, as Administrative Agent. Capitalized terms used but not defined
herein have the respective meanings set forth in the Credit Agreement.

 

The undersigned hereby
confirms that it has agreed to become a Lender under the Credit Agreement with
a Revolving Commitment of
$           effective on the
date which is three Business Days after the consent hereto by the
Administrative Agent, the Swing Line Lender and the Issuing Lender and the
acknowledgement of receipt hereof by the Administrative Agent, or on such other
date as may be agreed among the Company, the Administrative Agent and the
undersigned.

 

The undersigned (a) acknowledges
that it has received a copy of the Credit Agreement and the Schedules and
Exhibits thereto, together with copies of the most recent financial statements
delivered by the Company pursuant to the Credit Agreement, and such other
documents and information as it has deemed appropriate to make its own credit
and legal analysis and decision to become a Lender under the Credit Agreement;
and (b) agrees 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 deem appropriate at the time, continue to make its own
credit and legal decisions in taking or not taking action under the Credit
Agreement.

 

The undersigned
represents and warrants that (i) it is duly organized and existing and it
has full power and authority to take, and has taken, all action necessary to
execute and deliver this letter and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement; and (ii) no
notices to, or consents, authorizations or approvals of, any Person are
required (other than any already given or obtained) for its due execution and
delivery of this letter and the performance of its obligations as a Lender
under the Credit Agreement.

 

 

The undersigned agrees to
execute and deliver such other instruments, and take such other actions, as the
Administrative Agent or the Company may reasonably request in connection
with the transactions contemplated by this letter.

 

 

The following administrative details apply to the
undersigned:

 

	
  (A)

  	
  Notice Address:

  
	
   

  	
   

  
	
   

  	
  Legal name:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
	
   

  	
  Telephone:

  	
  (

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
  Facsimile:

  	
  (

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  
	
  (B)

  	
  Payment Instructions:

  
	
   

  	
   

  
	
   

  	
  Account No.:

  	
   

  	
   

  
	
   

  	
  At:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Reference:

  	
   

  	
   

  
	
   

  	
  Attention:

  	
   

  	
   

  
												

 

The undersigned
acknowledges and agrees that, on the date on which the undersigned becomes a
Lender under the Credit Agreement as set forth in the second paragraph hereof,
the undersigned (a) will be bound by the terms of the Credit Agreement as
fully and to the same extent as if the undersigned were an original Lender
under the Credit Agreement and (b) will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

 

This letter shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This letter may be executed in any
number of counterparts, which together shall constitute one instrument.
Delivery of an executed counterpart of a signature page of this
letter by telecopy shall be effective as delivery of a manually executed
counterpart of this letter. This letter shall be governed by, and
construed in accordance with, the law of the State of Illinois.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [NAME OF NEW LENDER]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

 

Acknowledged
and consented to as of

              ,
20   

 

LASALLE
BANK NATIONAL ASSOCIATION, as Administrative Agent

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

 

LASALLE
BANK NATIONAL ASSOCIATION, as Swing Line Lender and as

Issuing
Lender

 

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:Exhibit 10.2

 

 

 

GUARANTY AND COLLATERAL
AGREEMENT

 

dated as of March 9,
2006

 

among

 

KANBAY INTERNATIONAL, INC.

 

and

 

VARIOUS OTHER PARTIES,

as
Grantors,

 

and

 

LASALLE
BANK NATIONAL ASSOCIATION,

as the
Administrative Agent

 

 

 

 

GUARANTY
AND COLLATERAL AGREEMENT

 

THIS GUARANTY AND
COLLATERAL AGREEMENT dated as of March 9, 2006 (this “Agreement”)
is entered into among KANBAY INTERNATIONAL, INC. (the
“Company”) and each other Person signatory hereto as a Grantor (together
with any other Person that becomes a party hereto as provided herein, the “Grantors”)
in favor of LASALLE BANK NATIONAL ASSOCIATION, as the Administrative Agent for
all the Lenders party to the Credit Agreement (as hereafter defined).

 

The Lenders have
severally agreed to extend credit to the Company pursuant to the Credit
Agreement and various Bank Product Agreements. 
The Company is affiliated with each other Grantor.  The proceeds of credit extended under the
Credit Agreement (as defined below) will be used in part to enable the Company
to make valuable transfers to the Grantors in connection with the operation of
their respective businesses.  The Company
and the other Grantors are engaged in interrelated businesses, and each Grantor
will derive substantial direct and indirect benefit from extensions of credit
under the Credit Agreement and such Bank Product Agreement.  It is a condition precedent to each Lender’s
obligation to extend credit under the Credit Agreement that the Grantors shall
have executed and delivered this Agreement to the Administrative Agent for the
ratable benefit of all the Lenders.

 

In consideration
of the premises and to induce the Administrative Agent and the Lenders to enter
into the Credit Agreement and to induce the Lenders to extend credit
thereunder, each Grantor hereby agrees with the Administrative Agent, for the
ratable benefit of the Lenders, as follows:

 

SECTION 1                                   DEFINITIONS.

 

1.1                                 Unless
otherwise defined herein, (a) capitalized terms used but not defined
herein shall have the respective meanings given to them in the Credit Agreement
and (b) the following terms are used herein as defined in the UCC (as
defined below): Accounts, Certificated Security, Commercial
Tort Claims, Deposit Accounts, Documents, Electronic
Chattel Paper, Equipment, Farm Products, Fixtures, Goods,
Health Care Insurance Receivables, Instruments, Inventory,
Leases, Letter-of-Credit Rights, Money, Payment
Intangibles, Supporting Obligations and Tangible Chattel Paper.

 

1.2                                 When
used herein the following terms shall have the following meanings:

 

Assigned Agreements
means the Adjoined Acquisition Agreement and each other document executed by a
Grantor in connection with the Adjoined Acquisition.

 

Agreement
has the meaning set forth in the preamble hereto.

 

Bankruptcy Code
means Title 11 of the United States Code (11 U.S. C. §101 et seq.).

 

Bermuda Pledged Equity
means the Pledged Equity issued by Kanbay Limited.

 

 

Chattel Paper
means all “chattel paper” as such term is defined in Section 9-102(a)(11)
of the UCC and, in any event, including with respect to any Grantor, all
Electronic Chattel Paper and Tangible Chattel Paper.

 

Collateral
means (a) all of the personal property now owned or at any time hereafter
acquired by any Grantor or in which any Grantor now has or at any time in the
future acquires any right, title or interest, including all of each Grantor’s
Accounts, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents,
Equipment, Fixtures, General Intangibles, Health Care Insurance Receivables,
Farm Products, Goods, Instruments, Intellectual Property, Inventory, Investment
Property, Leases, Letter-of-Credit Rights, Money, Supporting Obligations and
Identified Claims, (b) all books and records pertaining to any of the
foregoing, (c) all Proceeds and products of any of the foregoing and (d) all
collateral security and guaranties given by any Person with respect to any of
the foregoing; provided that “Collateral” shall not include (i) any
lease, license, contract, property right or agreement to which any Grantor is a
party or any of its rights or interests thereunder to the extent and for so
long as the grant of a security interest pursuant to this Agreement would
constitute or result in (x) the abandonment, invalidation or unenforceability
of any right, title or interest of such Grantor under, or (y) a breach or
termination pursuant to the terms of, or a default under, such lease, license,
contract, property right or agreement (other than to the extent any such term
would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409
of the UCC (or any successor provision) of any relevant jurisdiction or any
other applicable law (including the Bankruptcy Code) or principles of equity); provided,
further, that such lease, license, contract, property right and/or
agreement shall cease to be excluded from the Collateral immediately at such
time as the condition causing such abandonment, invalidation or
unenforceability shall be remedied and, to the extent severable, any portion of
such lease, license, contract, property right or agreement that does not result
in any consequence specified in clause (i) or clause (ii) above
shall constitute Collateral.  Where the
context requires, terms relating to the Collateral or any part thereof, when
used in relation to a Grantor, shall refer to such Grantor’s Collateral or the
relevant part thereof.

 

Company Obligations
means all Obligations of the Company.

 

Contract Rights
means all of the Grantors’ rights and remedies with respect to the Assigned
Agreements, including Seller Undertakings.

 

Copyrights
means all copyrights arising under the laws of the United States, any other
country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished, including those listed on Schedule 5,
all registrations and recordings thereof, and all applications in connection
therewith, including all registrations, recordings and applications in the
United States Copyright Office, and the right to obtain all renewals of any of
the foregoing.

 

Copyright Licenses
means all written agreements naming any Grantor as licensor or licensee,
including those listed on Schedule 5, granting any right under any
Copyright, including the grant of rights to manufacture, distribute, exploit
and sell materials derived from any Copyright.

 

2

 

Credit Agreement
means the Credit Agreement dated as of March 9, 2006 among the Company,
the Lenders and the Administrative Agent, as amended, supplemented, restated or
otherwise modified from time to time.

 

General Intangibles
means all “general intangibles” as such term is defined in Section 9-102(a)(42)
of the UCC (other than any equity interest of any Foreign Subsidiary that does
not constitute Pledged Equity) and, in any event, including with respect to any
Grantor, all Payment Intangibles, all contracts, Contract Rights, agreements,
instruments and indentures in any form, and portions thereof, to which such
Grantor is a party or under which such Grantor has any right, title or interest
or to which such Grantor or any property of such Grantor is subject, as the
same from time to time may be amended, supplemented or otherwise modified,
including, without limitation, (a) all rights of such Grantor to receive
moneys due and to become due to it thereunder or in connection therewith, (b) all
rights of such Grantor to damages arising thereunder and (c) all rights of
such Grantor to perform and to exercise all remedies thereunder.

 

Guarantor Obligations
means, with respect to each Guarantor, all Obligations of such Guarantor.

 

Guarantors
means the collective reference to each Grantor other than the Company.

 

Identified Claims
means the Commercial Tort Claims described on Schedule 7 as such schedule shall
be supplemented from time to time.

 

Intellectual Property
means all past, present and future: trade secrets and other proprietary
information; customer lists; service marks, business names, trade names,
designs, logos, indicia, and/or other source and/or business identifiers and
the goodwill of the business relating thereto and all registrations or
applications for registrations which have been or hereafter are issued thereon
throughout the world; industrial designs, industrial design applications and
registered industrial designs; Copyrights and Copyright Licenses; Patents and
Patent Licenses; Trademarks and Trademark Licenses; mask works, books, records,
writings, computer tapes or disks, flow diagrams, specification sheets, source
codes, object codes and other physical manifestations, embodiments or incorporations
of any of the foregoing; and all rights to sue at law or in equity for any
infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

 

Intercompany Note
means any promissory note evidencing loans made by any Grantor to any other
Grantor.

 

Investment Property
means the collective reference to (a) all “investment property” as such
term is defined in Section 9-102(a)(49) of the UCC (other than the equity
interest of any Foreign Subsidiary excluded from the definition of Pledged
Equity), (b) all “financial assets” as such term is defined in Section 8-102(a)(9) of
the UCC and (c) whether or not constituting “investment property” as so
defined, all Pledged Notes and all Pledged Equity.

 

Issuers
means the collective reference to each issuer of any Investment Property.

 

3

 

Patents
means (a) all letters patent of the United States, any other country or
any political subdivision thereof, all reissues and extensions thereof and all
goodwill associated therewith, including any of the foregoing referred to in Schedule 5,
(b) all applications for letters patent of the United States or any other
country and all divisions, continuations and continuations-in-part thereof,
including any of the foregoing referred to in Schedule 5, and (c) all
rights to obtain any reissues or extensions of the foregoing.

 

Patent Licenses
means all agreements, whether written or oral, providing for the grant by or to
any Grantor of any right to manufacture, use or sell any invention covered in
whole or in part by a Patent, including any of the foregoing referred to in Schedule 5.

 

Pledged Equity
means the equity interests listed on Schedule 1, together with any
other equity interests, certificates, options or rights of any nature
whatsoever in respect of the equity interests of any Person that are issued or
granted from time to time to, or held by, any Grantor while this Agreement is
in effect; provided that in no event shall (a) more than 65% of the
total outstanding voting equity interests of any Material Foreign Subsidiary
owned directly by the Company or any Domestic Subsidiary be required to be
pledged hereunder (it being understood that 100% of the outstanding non-voting
equity interests of any Material Foreign Subsidiary owned directly by the
Company or any Domestic Subsidiary are required to be pledged hereunder) or (b) any
equity interest of any other Foreign Subsidiary be required to be pledged
hereunder.

 

Pledged Notes
means all promissory notes listed on Schedule 1, all Intercompany
Notes at any time issued to any Grantor and all other promissory notes issued
to or held by any Grantor (other than (a) promissory notes issued in
connection with extensions of trade credit by any Grantor in the ordinary
course of business, (b) any individual promissory note which is less than
$100,000 in principal amount, up to an aggregate of $500,000 for all such
promissory notes excluded under this clause (b) and (c) any
promissory note described in part B of Schedule 11.10 to the Credit
Agreement issued by a former option holder of Adjoined Consulting, Inc.,
so long as such promissory note is cancelled, repaid or otherwise terminated
not later than March 17, 2006).

 

Proceeds
means all “proceeds” as such term is defined in Section 9-102(a)(64) of
the UCC and, in any event, shall include all dividends or other income from the
Investment Property, collections thereon or distributions or payments with
respect thereto.

 

Receivable
means any right to payment for goods sold or leased or for services rendered,
whether or not such right is evidenced by an Instrument or Chattel Paper and
whether or not it has been earned by performance (including any Account).

 

Satisfaction Time
means (a) the indefeasible payment in full in cash and performance of all
Secured Obligations (except for (i) contingent obligations under Letters
of Credit, (ii) contingent obligations under any provision of any Loan
Document that by its terms survives termination of such Loan Document and (iii) Bank
Product Obligations so long as (x) the holder thereof has consented to the
release of the Collateral or (y) the applicable Grantor has Cash Collateralized
such Bank Product Obligations, or made other arrangements to ensure payment
thereof in a manner reasonably satisfactory to such holder), (b) the
termination of all 

 

4

 

Commitments and (c) either
(i) the cancellation and return to the Administrative Agent of all Letters
of Credit or (ii) the Cash Collateralization of all Letters of Credit.

 

Secured Obligations
means, collectively, the Company Obligations and Guarantor Obligations.

 

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

 

Seller Undertakings
means, collectively, all representations, warranties, covenants and agreements
in favor of any Grantor, and all indemnifications for the benefit of any
Grantor relating thereto, pursuant to the Assigned Agreements.

 

Trademarks
means (a) all trademarks, trade names, corporate names, the Company names,
business names, fictitious business names, trade styles, service marks, logos
and other source or business identifiers, and all goodwill associated
therewith, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all applications in connection therewith, whether in
the United States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof or any other country or any
political subdivision thereof, or otherwise, and all common-law rights related
thereto, including any of the foregoing referred to in Schedule 5,
and (b) the right to obtain all renewals thereof.

 

Trademark Licenses
means, collectively, each agreement, whether written or oral, providing for the
grant by or to any Grantor of any right to use any Trademark, including any of
the foregoing referred to in Schedule 5.

 

UCC
means the Uniform Commercial Code as in effect on the date hereof and
from time to time in the State of Illinois, provided that if by reason
of mandatory provisions of law, the perfection or the effect of perfection or
non-perfection of the security interests in any Collateral or the availability
of any remedy hereunder is governed by the Uniform Commercial Code as in effect
on or after the date hereof in any other jurisdiction, “UCC” means the Uniform
Commercial Code as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such perfection or effect of perfection or
non-perfection or availability of such remedy.

 

UCC Collateral
means Collateral in which a security interest may be created under the UCC.

 

SECTION 2                                   GUARANTY.

 

2.1                                 Guaranty.  (a) Each of the Guarantors hereby,
jointly and severally, unconditionally and irrevocably, as a primary obligor
and not only a surety, guaranties to the Administrative Agent, for the ratable
benefit of the Lenders and their respective successors, indorsees, transferees
and assigns, the prompt and complete payment and performance by the Company
when due (whether at the stated maturity, by acceleration or otherwise) of the
Company Obligations.

 

5

 

(b)         Anything
herein or in any other Loan Document to the contrary notwithstanding, the
maximum liability of each Guarantor hereunder and under the other Loan
Documents shall in no event exceed the amount which can be guarantied by such
Guarantor under applicable federal and state laws relating to the insolvency of
debtors (after giving effect to the right of contribution established in Section 2.2).

 

(c)          Each
Guarantor agrees that the Secured Obligations may at any time and from time to
time exceed the amount of the liability of such Guarantor hereunder without
impairing the guaranty contained in this Section 2 or affecting the
rights and remedies of the Administrative Agent or any Lender hereunder.

 

(d)         The
guaranty contained in this Section 2 shall remain in full force and
effect until the Satisfaction Time.

 

(e)          No
payment made by the Company, any of the Guarantors, any other guarantor or any
other Person or received or collected by the Administrative Agent or any Lender
from the Company, any of the Guarantors, any other guarantor or any other
Person by virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of
the Secured Obligations shall be deemed to modify, reduce, release or otherwise
affect the liability of any Guarantor hereunder which shall, notwithstanding
any such payment (other than any payment made by such Guarantor in respect of
the Secured Obligations or any payment received or collected from such
Guarantor in respect of the Secured Obligations), remain liable for the Secured
Obligations up to the maximum liability of such Guarantor hereunder until the
Satisfaction Time.

 

2.2                                 Right
of Contribution.  Each Guarantor
hereby agrees that to the extent that a Guarantor shall have paid more than its
proportionate share of any payment made hereunder, such Guarantor shall be
entitled to seek and receive contribution from and against any other Guarantor
hereunder which has not paid its proportionate share of such payment.  Each Guarantor’s right of contribution shall
be subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2
shall in no respect limit the obligations and liabilities of any Guarantor to
the Administrative Agent and the Lenders, and each Guarantor shall remain
liable to the Administrative Agent and the Lenders for the full amount
guarantied by such Guarantor hereunder.

 

2.3                                 No
Subrogation.  Notwithstanding any
payment made by any Guarantor hereunder or any set-off or application of funds
of any Guarantor by the Administrative Agent or any Lender, no Guarantor shall
be entitled to be subrogated to any of the rights of the Administrative Agent
or any Lender against the Company or any other Guarantor or any collateral
security or guaranty or right of offset held by the Administrative Agent or any
Lender for the payment of the Secured Obligations, nor shall any Guarantor seek
or be entitled to seek any contribution or reimbursement from the Company or
any other Guarantor in respect of payments made by such Guarantor hereunder,
until the Satisfaction Time.  If any
amount shall be paid to any Guarantor on account of such subrogation rights at
any time before the Satisfaction Time, such amount shall be held by such
Guarantor in trust for the Administrative Agent and the Lenders, segregated
from other funds of such Guarantor, and shall, forthwith upon receipt by such
Guarantor, be turned over to the Administrative Agent in the exact form
received by such Guarantor (duly 

 

6

 

indorsed by such
Guarantor to the Administrative Agent, if required), to be applied against the
Secured Obligations, whether matured or unmatured, in such order as the
Administrative Agent may determine.

 

2.4                                 Amendments,
etc. with respect to the Secured Obligations.  Each Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor, any demand
for payment of any of the Secured Obligations made by the Administrative Agent
or any Lender may be rescinded by the Administrative Agent or such Lender and
any of the Secured Obligations continued, and the Secured Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guaranty therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended,
modified, accelerated, compromised, waived, surrendered or released by the
Administrative Agent or any Lender, and the Credit Agreement, any other Loan
Document or any other document executed and delivered in connection therewith
may be amended, modified, supplemented or terminated, in whole or in part, as
the Administrative Agent (or the Required Lenders or all the Lenders, as the
case may be) may deem advisable from time to time.  Neither the Administrative Agent nor any
Lender shall have any obligation to protect, secure, perfect or insure any Lien
at any time held by it as security for the Secured Obligations or for the
guaranty contained in this Section 2 or any property subject
thereto.

 

The Administrative Agent
or any Lender may, from time to time, at its sole discretion and without notice
to the Guarantors (or any of them), take any or all of the following actions
without affecting in any manner the obligations of the Guarantors hereunder:  (a) retain or obtain a security interest
in any property to secure any of the Secured Obligations or any obligation
hereunder, (b) retain or obtain the primary or secondary obligation of any
obligor or obligors, in addition to the Grantors, with respect to any of the
Secured Obligations, (c) extend or renew any of the Secured Obligations
for one or more periods (whether or not longer than the original period), alter
or exchange any of the Secured Obligations or release or compromise any
obligation of any Grantor hereunder or any obligation of any nature of any
other obligor with respect to any of the Secured Obligations, (d) release
any guaranty or right of offset or its security interest in, or surrender,
release or permit any substitution or exchange for, all or any part of any
property securing any of the Secured Obligations or any obligation hereunder,
or extend or renew for one or more periods (whether or not longer than the
original period) or release, compromise, alter or exchange any obligations of
any nature of any obligor with respect to any such property, and (e) resort
to the Grantors (or any of them) for payment of any of the Secured Obligations
when due, whether or not the Administrative Agent or such Lender shall have
resorted to any property securing any of the Secured Obligations or any
obligation hereunder or shall have proceeded against any other of the Grantors
or any other obligor primarily or secondarily obligated with respect to any of
the Secured Obligations.

 

2.5                                 Waivers.  Each Guarantor waives any and all notice of
the creation, renewal, extension or accrual of any of the Secured Obligations
and notice of or proof of reliance by the Administrative Agent or any Lender
upon the guaranty contained in this Section 2 or acceptance of the
guaranty contained in this Section 2; the Secured Obligations, and
any of them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, 

 

7

 

amended or waived,
in reliance upon the guaranty contained in this Section 2, and all
dealings between the Company and any of the Guarantors, on the one hand, and
the Administrative Agent and the Lenders, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon the
guaranty contained in this Section 2.  Each Guarantor waives (a) diligence,
presentment, protest, demand for payment and notice of default, dishonor or
nonpayment and all other notices whatsoever to or upon the Company or any of
the Guarantors with respect to the Secured Obligations, (b) notice of the
existence or creation or non-payment of all or any of the Secured Obligations
and (c) all diligence in collection or protection of or realization upon
any Secured Obligations or any security for or guaranty of any Secured
Obligations.

 

2.6                                 Payments.  Each Guarantor hereby covenants and agrees
that payments hereunder will be paid to the Administrative Agent without
set-off or counterclaim in Dollars at the office of the Administrative Agent
specified in the Credit Agreement.

 

SECTION 3                                   GRANT
OF SECURITY INTEREST.

 

3.1                                 Grant.  Each Grantor hereby assigns and transfers to
the Administrative Agent, and hereby grants to the Administrative Agent, for
the ratable benefit of the Lenders and (to the extent provided herein) their
Affiliates, a continuing security interest in all of its Collateral, as
collateral security for the prompt and complete payment and performance when
due (whether at the stated maturity, by acceleration or otherwise) of the Company
Obligations or the Guarantor Obligations, as the case may be.  The foregoing grant by the Company of a
security interest in the Bermuda Pledged Equity shall be construed for all
purposes of this Agreement as a charge over the Bermuda Pledged Equity within
the meaning of Bermuda law.

 

3.2                                 Collateral
Assignment of Rights under the Assigned Agreements.  Each Grantor hereby irrevocably authorizes
and empowers the Administrative Agent or its agents, in their sole discretion,
to assert, either directly or on behalf of any Grantor, at any time that an
Event of Default exists, any claims any Grantor may from time to time have
against the sellers or any of their affiliates with respect to any and all of
the Contract Rights or with respect to any and all payments or other
obligations due from the sellers or any of their affiliates to the Company
under or pursuant to the Assigned Agreements (“Payments”), and to
receive and collect any damages, awards and other monies resulting therefrom
and to apply the same on account of the Secured Obligations.  After the occurrence of any Event of Default,
the Administrative Agent may provide notice to the sellers or any of their
affiliates under any Assigned Agreement that all Payments shall be made to or
at the direction of the Administrative Agent for so long as such Event of
Default shall be continuing.  Following
the delivery of any such notice, the Administrative Agent shall promptly notify
the sellers under the Assigned Agreement upon the termination or waiver of any
such Event of Default.  Each Grantor
hereby irrevocably makes, constitutes and appoints the Administrative Agent
(and all officers, employees, or agents designated by the Administrative Agent)
as such Grantor’s true and lawful attorney (and agent-in-fact) for the purpose
of enabling the Administrative Agent or its agents to assert and collect such
claims and to apply such monies in the manner set forth above, which
appointment, being coupled with an interest, is irrevocable.

 

8

 

SECTION 4                                   REPRESENTATIONS
AND WARRANTIES.

 

To induce the
Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the Company
thereunder, each Grantor jointly and severally represents and warrants to the
Administrative Agent and each Lender that:

 

4.1                                 Title;
No Other Liens.  Except for Permitted
Liens, the Grantors own each item of the Collateral free and clear of any and
all Liens.  No financing statement or
other public notice with respect to any Collateral is on file or of record in
any public office, except (a) filings made in connection with Permitted
Liens, (b) filings for which termination statements have been delivered to
the Administrative Agent, (c) filings made after the date of this
Agreement that were not authorized by any Grantor and do not relate to any
valid security interest that would be perfected under any applicable Uniform
Commercial Code by such filing, (d) filings made by a lessor covering only
assets subject to an Operating Lease with such lessor and (e) financing
statements filed in anticipation of the refinancing of the Secured Obligations
that are not on file for more than 10 days, provided that the Company
shall give the Administrative Agent prior written notice of the filing of any
such financing statement described in this clause (e).

 

4.2                                 Perfected
First Priority Liens.  The security
interests granted pursuant to this Agreement (a) upon completion of the
filings specified on Schedule 2 (which, in the case of all filings
referred to on Schedule 2, have been delivered to the
Administrative Agent in completed form) will constitute valid perfected
security interests in favor of the Administrative Agent, for the ratable
benefit of the Lenders as collateral security for each Grantor’s Obligations,
in all UCC Collateral in which a security interest may be perfected by filing
under the UCC, enforceable in accordance with the terms hereof against all
creditors of each Grantor and any Persons purporting to purchase any Collateral
from each Grantor and (b) are prior to all other Liens on the Collateral
in existence on the date hereof except for Permitted Liens.  The filings specified on Schedule 2
constitute all of the filings necessary to perfect all security interests
granted hereunder in all UCC Collateral in which a security interest may be
perfected by filing under the UCC.

 

4.3                                 Grantor
Information.  On the date hereof, Schedule 3
sets forth (a) each Grantor’s jurisdiction of organization, (b) the
location of each Grantor’s chief executive office, (c) each Grantor’s
exact legal name as it appears on its organizational documents and (d) each
Grantor’s organizational identification number (to the extent a Grantor is
organized in a jurisdiction which assigns such numbers) and federal employer
identification number.

 

4.4                                 Collateral
Locations.  On the date hereof, Schedule 4
sets forth (a) each place of business of each Grantor (including its chief
executive office), (b) all locations where all Inventory and the Equipment
owned by each Grantor is kept, except with respect to Inventory and Equipment
with a fair market value of less than $250,000 (in the aggregate for all
Grantors) which may be located at other locations and (c) whether each such
Collateral location and place of business (including each Grantor’s chief
executive office) is owned or leased (and if leased, specifies the complete
name and notice address of each lessor). 
As of the date hereof, no Collateral is in the possession of any lessor,
bailee, warehouseman or consignee, except as indicated on Schedule 4.

 

9

 

4.5                                 Certain
Property.  None of the Collateral
constitutes, or is the Proceeds of, (a) Farm Products, (b) Health
Care Insurance Receivables or (c) vessels, aircraft or any other property
subject to any certificate of title or other registration statute of the United
States, any State or other jurisdiction, other than motor vehicles with an
aggregate book value of less than $250,000.

 

4.6                                 Investment
Property.  (a) The Pledged
Equity pledged by each Grantor hereunder constitute all the issued and
outstanding equity interests of each Issuer owned by such Grantor or, in the
case of any first-tier Material Foreign Subsidiary, 65% of all issued and
outstanding equity interests of such first-tier Material Foreign Subsidiary.

 

(b)         All
of the Pledged Equity has been duly and validly issued and is fully paid and
nonassessable.

 

(c)          Each
of the Pledged Notes constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms (subject
to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally, general equitable principles (whether considered
in a proceeding in equity or at law) and an implied covenant of good faith and
fair dealing).

 

(d)         Schedule 1
lists all Investment Property owned by each Grantor on the date hereof.  Each Grantor is the record and beneficial
owner of, and has good and marketable title to, the Investment Property pledged
by it hereunder, free of any and all Liens or options in favor of any other
Person, except Permitted Liens.

 

4.7                                 Receivables.  (a) As of the date of this Agreement, no
material amount payable to such Grantor under or in connection with any
Receivable is evidenced by any Instrument or Chattel Paper which has not been
delivered to the Administrative Agent.

 

(b)         No
more than 5% of the amount of all Receivables is payable by governmental
authorities.

 

(c)          The
amounts represented by such Grantor to the Lenders from time to time as owing
to such Grantor in respect of the Receivables (to the extent such
representations are required by any of the Loan Documents) will at all such
times be accurate in all material respects.

 

4.8                                 Intellectual
Property.  (a) Schedule 5
lists all Intellectual Property owned by such Grantor in its own name on the
date hereof which has been registered under any registration statute (excluding
any Intellectual Property that is of de  minimis value, such as
Intellectual Property that such Grantor intends to abandon).

 

(b)         On
the date hereof, all material Intellectual Property owned by any Grantor is
valid, subsisting, unexpired and enforceable and has not been abandoned.

 

10

 

(c)          Except
as set forth in Schedule 5, none of the material Intellectual
Property is the subject of any licensing or franchise agreement pursuant to
which such Grantor is the licensor or franchisor.

 

(d)         Each
Grantor owns and possesses or has a license or other right to use all
Intellectual Property as is necessary for the conduct of the businesses of such
Grantor, without any infringement upon rights of others which could reasonably
be expected to have a Material Adverse Effect.

 

4.9                                 Depositary
and Other Accounts.  All depositary
and other accounts maintained by each Grantor as of the date of this Agreement
are described on Schedule 6 hereto, which description includes for
each such account the name of the Grantor maintaining such account, the name,
address, telephone and fax numbers of the financial institution at which such
account is maintained, the account number and the account officer, if any, of
such account.

 

SECTION 5                                   COVENANTS.

 

Each Grantor covenants
and agrees with the Administrative Agent and the Lenders that, from and after
the date of this Agreement until the Satisfaction Time:

 

5.1                                 Delivery
of Instruments, Certificated Securities and Chattel Paper.  If any amount payable under or in connection
with any of the Collateral in excess of $250,000 (in the aggregate for all
Grantors) shall be or become evidenced by any
Instrument, Certificated Security or Chattel Paper, such Instrument,
Certificated Security or Chattel Paper shall be promptly delivered to the
Administrative Agent, duly indorsed in a manner satisfactory to the
Administrative Agent, to be held as Collateral pursuant to this Agreement.  In the event that an Event of Default shall
have occurred and be continuing, upon the request of the Administrative Agent,
any Instrument, Certificated Security or Chattel Paper not theretofore
delivered to the Administrative Agent and at such time being held by any
Grantor shall be immediately delivered to the Administrative Agent, duly
indorsed in a manner satisfactory to the Administrative Agent, to be held as
Collateral pursuant to this Agreement.

 

5.2                                 Maintenance
of Perfected Security Interest; Further Documentation.  (a) Such Grantor shall maintain the security
interest created by this Agreement as a perfected security interest having at
least the priority described in Section 4.2 and shall defend such
security interest against the claims and demands of all Persons whomsoever.

 

(b)         Such
Grantor will furnish to the Administrative Agent and the Lenders from time to
time statements and schedules further identifying and describing the assets and
property of such Grantor and such other reports in connection therewith as the
Administrative Agent may reasonably request, all in reasonable detail.

 

(c)          At
any time and from time to time, upon the written request of the Administrative
Agent, and at the sole expense of such Grantor, such Grantor will promptly and
duly execute and deliver, and have recorded, such further instruments and
documents and take such further actions as the Administrative Agent may
reasonably request for the purpose of obtaining or preserving the full benefits
of this Agreement and of the rights and powers herein 

 

11

 

granted, including
(i) filing any financing or continuation statements under the UCC (or
other similar laws) in effect in any jurisdiction with respect to the security
interests created hereby and (ii) in the case of Investment Property,
deposit accounts and any other relevant Collateral, taking any actions
necessary to enable the Administrative Agent to obtain “control” (within the
meaning of the applicable UCC) with respect thereto; provided that the
Administrative Agent may give any notice of exclusive control or similar notice
under any securities account control agreement or deposit account control
agreement only if an Event of Default under Section 13.1.1 or 13.1.4 of
the Credit Agreement exists and (iii) if requested by the Administrative
Agent, delivering, to the extent permitted by law, any original motor vehicle
certificates of title received by such Grantor from the applicable secretary of
state or other governmental authority after information reflecting the
Administrative Agent’s security interest has been recorded therein.

 

5.3                                 Changes
in Locations, Name, etc.  Such
Grantor shall not, except upon 30 days’ prior written notice to the
Administrative Agent and delivery to the Administrative Agent of (a) all
additional financing statements and other documents reasonably requested by the
Administrative Agent as to the validity, perfection and priority of the
security interests provided for herein and (b) if applicable, a written
supplement to Schedule 4 showing any additional location at which
Inventory or Equipment shall be kept:

 

(i)                                     permit
any of the Inventory or Equipment to be kept at a location other than those
listed on Schedule 4 or for which the applicable Grantor has
obtained, or used commercially reasonable efforts to obtain, a Collateral
Access Agreement executed by the owner of such property; provided that
up to $250,000 (in the aggregate for all Grantors) in fair market value of any
such Inventory and Equipment may be kept at other locations;

 

(ii)                                  change
its jurisdiction of organization or the location of its chief executive office
from that specified on Schedule 3 or in any subsequent notice
delivered pursuant to this Section 5.3; or

 

(iii)                               change
its name, identity or corporate structure; provided that Kanbay
Consulting, LLC may change its name to “Adjoined Consulting LLC” on or promptly
following the date hereof.

 

(b)         Notices.  Such Grantor will advise the Administrative
Agent and the Lenders promptly, in reasonable detail, of the occurrence of any
event which could reasonably be expected to have a material adverse effect on
the aggregate value of the Collateral or on the Liens created hereby.

 

5.4                                 Investment
Property.  (a) If such Grantor
shall become entitled to receive or shall receive any certificate, option or
right in respect of the equity interests of any Issuer, whether in addition to,
in substitution of, as a conversion of, or in exchange for, any of the Pledged
Equity, or otherwise in respect thereof, such Grantor shall, to the extent such
certificate, option or right constitutes Pledged Equity, accept the same as the
agent of the Administrative Agent and the Lenders, hold the same in trust for
the Administrative Agent and the Lenders and deliver the same forthwith to the
Administrative Agent in the exact form received, duly indorsed by such Grantor
to the Administrative Agent, if required, together with an undated instrument
of transfer 

 

12

 

covering such
certificate duly executed in blank by such Grantor and with, if the
Administrative Agent so requests, signature guarantied, to be held by the
Administrative Agent, subject to the terms hereof, as additional Collateral for
the Secured Obligations.  Upon the
occurrence and during the continuance of an Event of Default, (i) any sum
paid upon or in respect of the Investment Property upon the liquidation or
dissolution of any Issuer shall be paid over to the Administrative Agent to be
held by it hereunder as additional Collateral for the Secured Obligations, and (ii) in
case any distribution of capital shall be made on or in respect of the
Investment Property or any property shall be distributed upon or with respect
to the Investment Property pursuant to the recapitalization or reclassification
of the capital of any Issuer or pursuant to the reorganization thereof, the
property so distributed shall, unless otherwise subject to a perfected Lien in
favor of the Administrative Agent, be delivered to the Administrative Agent to
be held by it hereunder as additional Collateral for the Secured
Obligations.  Upon the occurrence and
during the continuance of an Event of Default, if any sum of money or property
so paid or distributed in respect of the Investment Property shall be received
by such Grantor, such Grantor shall, until such money or property is paid or
delivered to the Administrative Agent, hold such money or property in trust for
the Lenders, segregated from other funds of such Grantor, as additional
Collateral for the Secured Obligations.

 

(b)         Without
the prior written consent of the Administrative Agent, such Grantor will not (i) vote
to enable, or take any other action to permit, any Issuer to issue any equity
interests of any nature or to issue any other securities or interests
convertible into or granting the right to purchase or exchange for any equity
interests of any nature of any Issuer, except, in each case, as permitted by
the Credit Agreement, (ii) sell, assign, transfer, exchange, or otherwise
dispose of, or grant any option with respect to, the Investment Property or
Proceeds thereof (except pursuant to a transaction permitted by the Credit
Agreement) other than, with respect to Investment Property not constituting
Pledged Equity or Pledged Notes, any such action which is not prohibited by the
Credit Agreement or (iii) enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Administrative Agent to
sell, assign or transfer any of the Investment Property or Proceeds thereof
except, with respect to such Investment Property, shareholders’ agreements
entered into by such Grantor with respect to Persons in which such Grantor
maintains an ownership interest of 50% or less.

 

(c)          In
the case of each Grantor which is an Issuer, such Issuer agrees that (i) it
will be bound by the terms of this Agreement relating to the Investment
Property issued by it and will comply with such terms insofar as such terms are
applicable to it, (ii) it will notify the Administrative Agent promptly in
writing of the occurrence of any of the events described in Section 5.5(a)
with respect to the Investment Property issued by it and (iii) the terms
of Sections 6.3(c) and 6.7 shall apply to such Grantor with
respect to all actions that may be required of it pursuant to Section 6.3(c) or
6.7 regarding the Investment Property issued by it.

 

5.5                                 Receivables.  (a) Other than in the ordinary course of
business consistent with its past practice and in amounts which are not
material to the Company and its Subsidiaries taken as a whole, such Grantor
will not (i) grant any extension of the time of payment of any Receivable,
(ii) compromise or settle any Receivable for less than the full amount
thereof, (iii) release, wholly or partially, any Person liable for the
payment of any Receivable, (iv) allow any credit or 

 

13

 

discount
whatsoever on any Receivable or (v) amend, supplement or modify any
Receivable in any manner that could adversely affect the value thereof.

 

(b)         Such
Grantor will deliver to the Administrative Agent a copy of each material
demand, notice or document received by it that questions or calls into doubt
the validity or enforceability of more than 5% of the aggregate amount of the
then outstanding Receivables for all Grantors.

 

5.6                                 Intellectual
Property.  (a) Such Grantor
(either itself or through licensees) will (i) continue to use each
Trademark that is material to the business of the Company and its Subsidiaries
taken as a whole (so long as it is material to such business) in order to
maintain such Trademark in full force free from any claim of abandonment for
non-use, (ii) use such Trademark with the appropriate notice of
registration and all other notices and legends required by applicable law, (iii) not
adopt or use any mark which is confusingly similar or a colorable imitation of
such Trademark unless the Administrative Agent, for the ratable benefit of the
Lenders, shall obtain a perfected security interest in such mark pursuant to
this Agreement, and (iv) not (and not permit any licensee or sublicensee
thereof to) do any act or knowingly omit to do any act whereby such Trademark
may become invalidated or impaired in any way.

 

(b)         Such
Grantor (either itself or through licensees) will not do any act, or omit to do
any act, whereby any Patent that is material to the business of the Company and
its Subsidiaries taken as a whole (so long as it is material to such business)
may become forfeited, abandoned or dedicated to the public.

 

(c)          Such
Grantor (either itself or through licensees) (i) will employ each
Copyright that is material to the business of the Company and its Subsidiaries
taken as a whole (so long as it is material to such business) and (ii) will
not (and will not permit any licensee or sublicensee thereof to) do any act or
knowingly omit to do any act whereby any such Copyrights may become invalidated
or otherwise impaired.  Such Grantor will
not (either itself or through licensees) do any act whereby any Copyright that
is material to the business of the Company and its Subsidiaries taken as a whole
(so long as it is material to such business) may fall into the public domain.

 

(d)         Such
Grantor (either itself or through licensees) will not do any act that knowingly
uses any Intellectual Property that is material to the business of the Company
and its Subsidiaries taken as a whole (so long as it is material to such
business) to infringe the intellectual property rights of any other Person.

 

(e)          Such
Grantor will notify the Administrative Agent and the Lenders promptly if it
knows, or has reason to know, that any application or registration relating to
any material Intellectual Property may become forfeited, abandoned or dedicated
to the public, or of any adverse determination or development (including the
institution of, or any such determination or development in, any proceeding in
the United States Patent and Trademark Office, the United States Copyright
Office or any court or tribunal in any country) regarding, such Grantor’s
ownership of, or the validity of, any material Intellectual Property or such
Grantor’s right to register the same or to own and maintain the same.

 

14

 

(f)            Whenever
such Grantor, either by itself or through any agent, employee, licensee or
designee, shall file an application for the registration of any Intellectual
Property with the United States Patent and Trademark Office, the United States
Copyright Office or any similar office or agency in any other country or any
political subdivision thereof, such Grantor shall report such filing to the
Administrative Agent concurrently with the next delivery of financial
statements of the Company pursuant to Section 10.1 of the Credit
Agreement.  Upon the request of the
Administrative Agent, such Grantor shall execute and deliver, and have recorded,
any and all agreements, instruments, documents, and papers as the
Administrative Agent may reasonably request to evidence the Administrative
Agent’s security interest in any Copyright, Patent or Trademark and the
goodwill and general intangibles of such Grantor relating thereto or
represented thereby.

 

(g)         Such
Grantor will take all reasonable and necessary steps to maintain and pursue
each application (and to obtain the relevant registration) and to maintain each
registration of all material Intellectual Property owned by it.

 

(h)         In
the event that any material Intellectual Property is infringed upon or
misappropriated or diluted by a third party, such Grantor shall (i) take
such actions as such Grantor shall reasonably deem appropriate under the circumstances
to protect such Intellectual Property and (ii) if such Intellectual
Property is of material economic value, promptly notify the Administrative
Agent after it learns thereof and, to the extent, in its reasonable judgment,
such Grantor determines it appropriate under the circumstances, sue for
infringement, misappropriation or dilution, to seek injunctive relief where
appropriate and to recover any and all damages for such infringement,
misappropriation or dilution.

 

5.7                                 Seller
Undertakings.

 

(a)          Each
Grantor shall keep the Administrative Agent informed of all circumstances
bearing upon any material claim (including any such potential claim) under or
with respect to the Assigned Agreements and the Seller Undertakings and such
Grantor shall not, without the prior written consent of the Administrative
Agent, (i) waive any of its rights or remedies under any Assigned
Agreement with respect to any of the Seller Undertakings in excess of $500,000,
(ii) settle, compromise or offset any amount payable by the sellers to
such Grantor under any Assigned Agreement in excess of $500,000 or (iii) amend
or otherwise modify any Assigned Agreement in any manner which is adverse to
the interests of the Administrative Agent or any Lender.

 

(b)         Each
Grantor shall perform and observe all the terms and conditions of each Assigned
Agreement to be performed by it, maintain each Assigned Agreement in full force
and effect, enforce each Assigned Agreement in accordance with its terms and
take all such action to such end as may from time to time be reasonably
requested by the Administrative Agent.

 

(c)          Anything
herein to the contrary notwithstanding, (i) each applicable Grantor shall
remain liable under each Assigned Agreement to the extent set forth therein to
perform all of its duties and obligations thereunder to the same extent as if
this Agreement had not been executed, (ii) the exercise by the
Administrative Agent of any of its rights hereunder 

 

15

 

shall not release
any Grantor from any of its duties or obligations under any Assigned Agreement
and (iii) neither the Administrative Agent nor any other Lender shall have
any obligation or liability under any Assigned Agreement by reason of this
Agreement, nor shall the Administrative Agent or any other Lender be obligated
to perform any of the obligations or duties of any Grantor thereunder or to
take any action to collect or enforce any claim for payment assigned hereunder.

 

5.8                                 Depositary
and Other Deposit Accounts.  No
Grantor shall open any depositary or other deposit account (other than an
account with LaSalle) unless such Grantor shall have given the Administrative
Agent 10 days’ prior written notice of its intention to open such account.  The Grantors shall deliver to the Administrative
Agent a revised version of Schedule 6 within five days of opening
any account (other than an account with LaSalle).  Each Grantor hereby authorizes the financial
institutions at which such Grantor maintains a deposit account to provide the Administrative
Agent with such information with respect to such deposit account as the
Administrative Agent may from time to time reasonably request, and each Grantor
hereby consents to such information being provided to the Administrative Agent.

 

5.9                                 Other
Matters.

 

(a)          Within
30 days after the Closing Date, each of the Grantors shall use commercially
reasonable efforts to cause to be delivered to the Administrative Agent a
Collateral Access Agreement with respect to (a) each bailee with which
such Grantor keeps Inventory or other assets as of the Closing Date with a fair
market value in excess of $250,000 and (b) each landlord which leases real
property (and the accompanying facilities), other than any such property that
is subject to a leasehold mortgage in favor of the Administrative Agent, to any
of the Grantors as of the Closing Date; provided that the failure to so
deliver any such Collateral Access Agreement shall not constitute a breach
hereof to the extent such commercially reasonable efforts have been made.  Such requirement may be waived at the option
of the Administrative Agent.  If any
Grantor shall cause to be delivered Inventory or other property in excess of
$250,000 in fair market value to any bailee after the Closing Date, such
Grantor shall use reasonable efforts to cause such bailee to sign a Collateral
Access Agreement.  Such requirement may
be waived at the option of the Administrative Agent.  If any Grantor shall lease any real property
or facility and the fair market value of property of such Grantor located at
such leased real property or facility is in excess of $250,000 after the
Closing Date, such Grantor shall use commercially reasonable efforts to cause
the landlord in respect of such leased property or facility, other than any such
leased property or facility that is subject to a leasehold mortgage in favor of
the Administrative Agent to sign a Collateral Access Agreement.  Such requirement may be waived at the option
of the Administrative Agent.

 

(b)         Each
Grantor authorizes the Administrative Agent to, at any time and from time to
time, file financing statements, continuation statements, and amendments
thereto that describe the Collateral as “all assets” of each Grantor, or words
of similar effect, and which contain any other information required pursuant to
the UCC for the sufficiency of filing office acceptance of any financing
statement, continuation statement, or amendment, and each Grantor agrees to
furnish any such information to the Administrative Agent promptly upon request.
 Any such financing statement,
continuation statement, or amendment may be signed by the Administrative Agent
on behalf of any Grantor and may be filed at any time in any jurisdiction.

 

16

 

(c)          Each
Grantor shall, at any time and from time and to time, (i) at the
reasonable request of the Administrative Agent, use commercially reasonable
efforts to obtain an acknowledgement, in form and substance reasonably
satisfactory to the Administrative Agent, of any bailee having possession of
any of the Collateral, stating that the bailee holds such Collateral for the
Administrative Agent, (ii) take such steps as the Administrative Agent may
reasonably request for the Administrative Agent to obtain “control” of any
letter-of-credit rights, or electronic chattel paper (as such terms are defined
by the UCC with corresponding provisions thereof defining what constitutes “control”
for such items of Collateral), with any agreements establishing control to be
in form and substance reasonably satisfactory to the Administrative Agent, and (iii) take
such steps as the Administrative Agent may reasonably request for the
Administrative Agent to otherwise to insure the continued perfection and
priority of the Administrative Agent’s security interest in any of the
Collateral and of the preservation of its rights therein.  If any Grantor shall at any time, acquire a “commercial
tort claim” (as such term is defined in the UCC) in excess of $250,000, such
Grantor shall promptly notify the Administrative Agent thereof in writing and
supplement Schedule 7, therein providing a reasonable description
and summary thereof, and upon delivery thereof to the Administrative Agent,
such Grantor shall be deemed to thereby grant to the Administrative Agent (and
such Grantor hereby grants to the Administrative Agent) a security interest and
lien in and to such commercial tort claim and all proceeds thereof, all upon
the terms of and governed by this Agreement.

 

(d)         Without
limiting the generality of the foregoing, if any Grantor at any time holds or
acquires an interest in electronic chattel paper or “transferable records”, as
that term is defined in Section 201 of the federal Electronic Signatures
in Global and National Commerce Act, or in §16 of the Uniform Electronic
Transactions Act as in effect in any relevant jurisdiction in each case having
an aggregate value in excess of $250,000, such Grantor shall promptly notify
the Administrative Agent thereof and, at the request of the Administrative
Agent, shall take such action as the Administrative Agent may reasonably
request to vest in the Administrative Agent “control” under Section 9-105
of the UCC of such electronic chattel paper or control under Section 201
of the federal Electronic Signatures in Global and National Commerce Act or, as
the case may be, §16 of the Uniform Electronic Transactions Act, as so in
effect in such jurisdiction, of such transferable record.  The Administrative Agent agrees with the
Grantors that the Administrative Agent will arrange, pursuant to procedures
reasonably satisfactory to the Administrative Agent and so long as such
procedures will not result in the Administrative Agent’s loss of control, for
the Grantors to make alterations to the electronic chattel paper or transferable
record permitted under Section 9-105 of the UCC or, as the case may be, Section 201
of the federal Electronic Signatures in Global and National Commerce Act or §16
of the Uniform Electronic Transactions Act for a party in control to make
without loss of control, unless an Event of Default has occurred and is
continuing or would occur after taking into account any action by any Grantor
with respect to such electronic chattel paper or transferable record.

 

(e)          Within
30 days after the Closing Date (or such longer period as the Administrative
Agent may agree), the Company shall execute and deliver to the Administrative
Agent a collateral assignment, in form and substance satisfactory to the
Administrative Agent, of each business interruption insurance policy maintained
by the Company.

 

17

 

SECTION 6                                   REMEDIAL
PROVISIONS.

 

6.1                                 Certain
Matters Relating to Receivables.  (a) At
any time and from time to time after the occurrence and during the continuance
of an Event of Default, the Administrative Agent shall have the right to make
test verifications of the Receivables in any manner and through any medium that
it reasonably considers advisable, and each Grantor shall furnish all such
assistance and information as the Administrative Agent may require in
connection with such test verifications. 
At any time and from time to time after the occurrence and during the
continuance of an Event of Default, upon the Administrative Agent’s request and
at the expense of the relevant Grantor, such Grantor shall cause independent
public accountants or others satisfactory to the Administrative Agent to
furnish to the Administrative Agent reports showing reconciliations, agings and
test verifications of, and trial balances for, the Receivables.

 

(b)         The
Administrative Agent hereby authorizes each Grantor to collect such Grantor’s
Receivables, and the Administrative Agent may curtail or terminate such
authority at any time after the occurrence and during the continuance of an
Event of Default.  If required by the
Administrative Agent at any time after the occurrence and during the
continuance of an Event of Default, any payments of Receivables, when collected
by any Grantor, (i) shall be forthwith (and, in any event, within two
Business Days) deposited by such Grantor in the exact form received, duly
indorsed by such Grantor to the Administrative Agent if required, in a
collateral account maintained under the sole dominion and control of the
Administrative Agent, subject to withdrawal by the Administrative Agent for the
account of the Lenders only as provided in Section 6.5, and (ii) until
so turned over, shall be held by such Grantor in trust for the Administrative
Agent and the Lenders, segregated from other funds of such Grantor.  Each such deposit of Proceeds of Receivables
shall be accompanied by a report identifying in reasonable detail the nature
and source of the payments included in the deposit.

 

(c)          At
any time and from time to time after the occurrence and during the continuance
of an Event of Default, at the Administrative Agent’s request, each Grantor
shall deliver to the Administrative Agent all original and other documents
evidencing, and relating to, the agreements and transactions which gave rise to
the Receivables, including all original orders, invoices and shipping receipts.

 

6.2                                 Communications
with Obligors; Grantors Remain Liable. 
(a) The Administrative Agent in its own name or in the name of
others may at any time after the occurrence and during the continuance of an Event
of Default communicate with obligors under the Receivables to verify with them
to the Administrative Agent’s satisfaction the existence, amount and terms of
any Receivables.

 

(b)         Upon
the request of the Administrative Agent at any time after the occurrence and
during the continuance of an Event of Default, each Grantor shall notify
obligors on the Receivables that the Receivables have been assigned to the
Administrative Agent for the ratable benefit of the Lenders and that payments
in respect thereof shall be made directly to the Administrative Agent.

 

(c)          Anything
herein to the contrary notwithstanding, each Grantor shall remain liable in
respect of each of the Receivables to observe and perform all the conditions
and 

 

18

 

obligations to be
observed and performed by it thereunder, all in accordance with the terms of
any agreement giving rise thereto. 
Neither the Administrative Agent nor any Lender shall have any
obligation or liability under any Receivable (or any agreement giving rise
thereto) by reason of or arising out of this Agreement or the receipt by the
Administrative Agent or any Lender of any payment relating thereto, nor shall
the Administrative Agent or any Lender be obligated in any manner to perform
any of the obligations of any Grantor under or pursuant to any Receivable (or
any agreement giving rise thereto), to make any payment, to make any inquiry as
to the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be
entitled at any time or times.

 

(d)         For
the purpose of enabling the Administrative Agent to exercise rights and
remedies under this Agreement, each Grantor hereby grants to the Administrative
Agent, for the benefit of the Administrative Agent and the Lenders, an
irrevocable, nonexclusive license (exercisable without payment of royalty or
other compensation to such Grantor) to use, license or sublicense any
Intellectual Property now owned or hereafter acquired by such Grantor that
constitutes Collateral, and wherever the same may be located, and including in
such license access to all media in which any of the licensed items may be
recorded or stored and to all computer software and programs used for the
compilation or printout thereof.

 

6.3                                 Investment
Property.  (a) Unless an Event
of Default shall have occurred and be continuing and the Administrative Agent
shall have given notice to the relevant Grantor of the Administrative Agent’s
intent to exercise its corresponding rights pursuant to Section 6.3(b),
each Grantor shall be permitted to receive all cash dividends and distributions
paid in respect of the Pledged Equity and all payments made in respect of the
Pledged Notes, to the extent permitted in the Credit Agreement, and to exercise
all voting and other rights with respect to the Investment Property; provided
that no vote shall be cast or other right exercised or action taken which could
reasonably be expected to materially impair the value of, or the interests of
the Administrative Agent in, the Pledged Equity or the Pledged Notes or which
would be inconsistent with or result in any violation of any provision of the
Credit Agreement, this Agreement or any other Loan Document.

 

(b)         If
an Event of Default shall occur and be continuing and the Administrative Agent
shall give notice of its intent to exercise such rights to the relevant Grantor
or Grantors, (i) the Administrative Agent shall have the right to receive
any and all cash dividends and distributions, payments or other Proceeds paid
in respect of the Investment Property and make application thereof to the
Obligations in such order as the Administrative Agent may determine, and (ii) any
or all of the Investment Property shall be registered in the name of the
Administrative Agent or its nominee, and the Administrative Agent or its
nominee may thereafter exercise (x) all voting and other rights pertaining to
such Investment Property at any meeting of holders of the equity interests of
the relevant Issuer or Issuers or otherwise and (y) all rights of conversion,
exchange and subscription and any other right, privilege or option pertaining
to such Investment Property as if it were the absolute owner thereof (including
the right to exchange at its discretion any and all of the Investment Property
upon the merger, consolidation, reorganization, recapitalization or other
fundamental change in the corporate or 

 

19

 

other structure of
any Issuer, or upon the exercise by any Grantor or the Administrative Agent of
any right, privilege or option pertaining to such Investment Property, and in
connection therewith, the right to deposit and deliver any and all of the
Investment Property with any committee, depositary, transfer agent, registrar
or other designated agency upon such terms and conditions as the Administrative
Agent may determine), all without liability except to account for property
actually received by it, but the Administrative Agent shall have no duty to any
Grantor to exercise any such right, privilege or option and shall not be
responsible for any failure to do so or delay in so doing.

 

(c)          Each
Grantor hereby authorizes and instructs each Issuer of any Investment Property
pledged by such Grantor hereunder to (i) comply with any instruction
received by it from the Administrative Agent in writing that (x) states that an
Event of Default has occurred and is continuing and (y) is otherwise in
accordance with the terms of this Agreement, without any other or further
instructions from such Grantor, and each Grantor agrees that each Issuer shall
be fully protected in so complying and (ii) unless otherwise expressly
permitted hereby, pay any dividends, distributions or other payments with
respect to the Investment Property directly to the Administrative Agent.

 

6.4                                 Proceeds
to be Turned Over to Administrative Agent. 
In addition to the rights of the Administrative Agent and the Lenders
specified in Section 6.1 with respect to payments of Receivables,
if an Event of Default shall occur and be continuing and the Administrative
Agent shall give notice of its intent to exercise such rights to the relevant
Grantor or Grantors, all Proceeds received by any Grantor consisting of cash,
checks and other cash equivalent items shall be held by such Grantor in trust
for the Administrative Agent and the Lenders, segregated from other funds of
such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over
to the Administrative Agent in the exact form received by such Grantor (duly
indorsed by such Grantor to the Administrative Agent, if required).  All Proceeds received by the Administrative
Agent hereunder shall be held by the Administrative Agent in a collateral
account maintained under its sole dominion and control.  All Proceeds, while held by the
Administrative Agent in any collateral account (or by such Grantor in trust for
the Administrative Agent and the Lenders) established pursuant hereto, shall
continue to be held as collateral security for the Secured Obligations and
shall not constitute payment thereof until applied as provided in Section 6.5.

 

6.5                                 Application
of Proceeds.  At such intervals as
may be agreed upon by the Company and the Administrative Agent, or, if an Event
of Default shall have occurred and be continuing, at any time at the
Administrative Agent’s election, the Administrative Agent may apply all or any
part of Proceeds from the sale of, or other realization upon, all or any part
of the Collateral in payment of the Secured Obligations in such order as the
Administrative Agent shall determine in its discretion.  Any part of such funds which the
Administrative Agent elects not so to apply and deems not required as
collateral security for the Secured Obligations shall be paid over from time to
time by the Administrative Agent to the applicable Grantor or to whomsoever may
be lawfully entitled to receive the same. 
Any balance of such Proceeds remaining after the Satisfaction Time shall
be paid over to the applicable Grantor or to whomsoever may be lawfully
entitled to receive the same.

 

20

 

6.6                                 Code
and Other Remedies.  If an Event of
Default shall occur and be continuing, the Administrative Agent, on behalf of
the Lenders, may exercise, in addition to all other rights and remedies granted
to them in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Secured Obligations, all rights and remedies of a
secured party under the UCC or any other applicable law.  Without limiting the generality of the
foregoing, the Administrative Agent, without demand of performance or other
demand, presentment, protest, advertisement or notice of any kind (except any
notice required by law) to or upon any Grantor or any other Person (all and
each of which demands, defenses, advertisements and notices are hereby waived),
may in such circumstances forthwith collect, receive, appropriate and realize
upon the Collateral, or any part thereof, and/or may forthwith sell, lease,
assign, give options to purchase, or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, at any exchange, broker’s
board or office of the Administrative Agent or any Lender or elsewhere upon
such terms and conditions as it may deem advisable and at such prices as it may
deem best, for cash or on credit or for future delivery with assumption of any
credit risk.  The Administrative Agent or
any Lender shall have the right upon any such public sale or sales, and, to the
extent permitted by law, upon any such private sale or sales, to purchase the
whole or any part of the Collateral so sold, free of any right or equity of
redemption in any Grantor, which right or equity is hereby waived and
released.  Each Grantor further agrees,
at the Administrative Agent’s request, to assemble the Collateral and make it
available to the Administrative Agent at places which the Administrative Agent
shall reasonably select, whether at such Grantor’s premises or elsewhere.  The Administrative Agent shall apply the net
proceeds of any action taken by it pursuant to this Section 6.6,
after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the
Collateral or in any way relating to the Collateral or the rights of the
Administrative Agent and the Lenders hereunder (including Attorney Costs) to
the payment in whole or in part of the Secured Obligations, in such order as
the Administrative Agent may elect, and only after such application and after
the payment by the Administrative Agent of any other amount required by any
provision of law, need the Administrative Agent account for the surplus, if
any, to any Grantor.  To the extent
permitted by applicable law, each Grantor waives all claims, damages and
demands it may acquire against the Administrative Agent or any Lender arising
out of the exercise by them of any rights hereunder.  If any notice of a proposed sale or other
disposition of Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least 10 days before such sale or other
disposition.

 

6.7                                 Registration
Rights.  (a) If the
Administrative Agent shall determine to exercise its right to sell any or all
of the Pledged Equity pursuant to Section 6.6, and if in the
opinion of the Administrative Agent it is necessary or advisable to have the
Pledged Equity, or that portion thereof to be sold, registered under the
provisions of the Securities Act, the relevant Grantor will cause the Issuer
thereof to (i) execute and deliver, and cause the directors and officers
of such Issuer to execute and deliver, all such instruments and documents, and
do or cause to be done all such other acts as may be, in the opinion of the
Administrative Agent, necessary or advisable to register the Pledged Equity, or
that portion thereof to be sold, under the provisions of the Securities Act, (ii) use
its best efforts to cause the registration statement relating thereto to become
effective and to remain effective for a period of one year from the date of the
first public offering of the Pledged Equity, or that portion thereof to be
sold, and (iii) make all amendments 

 

21

 

thereto and/or to
the related prospectus which, in the opinion of the Administrative Agent, are
necessary or advisable, all in conformity with the requirements of the
Securities Act and the rules and regulations of the Securities and
Exchange Commission applicable thereto. 
Each Grantor agrees to cause such Issuer to comply with the provisions
of the securities or “Blue Sky” laws of any and all jurisdictions which the
Administrative Agent shall designate and to make available to its security
holders, as soon as practicable, an earnings statement (which need not be
audited) which will satisfy the provisions of Section 11(a) of the
Securities Act.

 

(b)         Each
Grantor recognizes that the Administrative Agent may be unable to effect a
public sale of any or all the Pledged Equity, by reason of certain prohibitions
contained in the Securities Act and applicable state securities laws or
otherwise, and may be compelled to resort to one or more private sales thereof
to a restricted group of purchasers which will be obliged to agree, among other
things, to acquire such securities for their own account for investment and not
with a view to the distribution or resale thereof.  Each Grantor acknowledges and agrees that any
such private sale may result in prices and other terms less favorable than if
such sale were a public sale and, notwithstanding such circumstances, agrees
that any such private sale shall be deemed to have been made in a commercially
reasonable manner.  The Administrative
Agent shall be under no obligation to delay a sale of any of the Pledged Equity
for the period of time necessary to permit the Issuer thereof to register such
securities or other interests for public sale under the Securities Act, or
under applicable state securities laws, even if such Issuer would agree to do
so.

 

(c)          Each
Grantor agrees to use its best efforts to do or cause to be done all such other
acts as may be necessary to make any sale of all or any portion of the Pledged
Equity pursuant to this Section 6.7 valid and binding and in
compliance with applicable law.  Each
Grantor further agrees that a breach of any of the covenants contained in this Section 6.7
will cause irreparable injury to the Administrative Agent and the Lenders, that
the Administrative Agent and the Lenders have no adequate remedy at law in
respect of such breach and, as a consequence, that each and every covenant
contained in this Section 6.7 shall be specifically enforceable
against such Grantor, and such Grantor hereby waives and agrees not to assert
any defense against an action for specific performance of such covenants except
for a defense that no Event of Default has occurred under the Credit Agreement.

 

6.8                                 Waiver;
Deficiency.  Each Grantor waives and
agrees not to assert any right or privilege which it may acquire under Section 9-626
of the UCC.  Each Grantor shall remain
liable for any deficiency if the proceeds of any sale or other disposition of
the Collateral are insufficient to pay the Secured Obligations in full and the
fees and disbursements of any attorneys employed by the Administrative Agent or
any Lender to collect such deficiency.

 

6.9                                 Special
Provisions Relating to Bermuda Pledged Equity.

 

(a)          If
an Event of Default shall occur and be continuing and the Administrative Agent
shall give notice of its intent to exercise such powers to the relevant Grantor
or Grantors, the power of sale and other powers specified in Section 30 of
the Conveyancing Act 1983 of Bermuda (applied in respect of personal property
as well as real property) shall be immediately exercisable and, without
prejudice to the generality of the foregoing, the Administrative Agent may,
during the existence of an Event of Default (but 

 

22

 

without limiting
the provisions of Section 6.3), appoint by instrument any Person to
be a receiver or one of the receivers of the Bermuda Pledged Equity
(collectively, the “Receiver”) and remove the Receiver so appointed and appoint
another or others in its stead.

 

(b)         The
Company hereby waives the entitlement conferred by Section 29 of the
Conveyancing Act 1983 of Bermuda (to the extent applicable) and agrees that Section 31
of that Act (to the extent applicable) shall not apply to the security created
by this Agreement.  For the avoidance of
doubt, the powers of the Administrative Agent by virtue of this Agreement shall
not be limited to those specified in Section 30 of the Conveyancing Act
1983.

 

SECTION 7                                   THE
ADMINISTRATIVE AGENT.

 

7.1                                 Administrative
Agent’s Appointment as Attorney-in-Fact, etc.  (a) Each Grantor hereby irrevocably
constitutes and appoints the Administrative Agent and any officer or agent
thereof, with full power of substitution, as its true and lawful
attorney-in-fact with full irrevocable power and authority in the place and
stead of such Grantor and in the name of such Grantor or in its own name, for
the purpose of carrying out the terms of this Agreement, to take any and all
appropriate action and to execute any and all documents and instruments which
may be necessary or desirable to accomplish the purposes of this Agreement and,
without limiting the generality of the foregoing, each Grantor hereby gives the
Administrative Agent the power and right, on behalf of and at the expense of
such Grantor, without notice to or assent by such Grantor, to do any or all of
the following:

 

(i)                                     in
the name of such Grantor or its own name, or otherwise, take possession of and
indorse and collect any checks, drafts, notes, acceptances or other instruments
for the payment of moneys due under any Receivable or with respect to any other
Collateral and file any claim or take any other action or proceeding in any
court of law or equity or otherwise deemed appropriate by the Administrative
Agent for the purpose of collecting any and all such moneys due under any
Receivable or with respect to any other Collateral whenever payable;

 

(ii)                                  in
the case of any Intellectual Property, execute and deliver, and have recorded,
any and all agreements, instruments, documents and papers as the Administrative
Agent may request to evidence the Administrative Agent’s security interest in
such Intellectual Property and the goodwill and general intangibles of such
Grantor relating thereto or represented thereby;

 

(iii)                               discharge
Liens levied or placed on or threatened against the Collateral, and effect any
repairs or insurance called for by the terms of this Agreement and pay all or
any part of the premiums therefor and the costs thereof;

 

(iv)                              execute,
in connection with any sale provided for in Section 6.6 or 6.7,
any indorsements, assignments or other instruments of conveyance or transfer
with respect to the Collateral; and

 

(v)                                 (1) direct
any party liable for any payment under any of the Collateral to make payment of
any and all moneys due or to become due thereunder directly to the

 

23

 

Administrative Agent or as the Administrative Agent shall direct; (2) ask
or demand for, collect, and receive payment of and receipt for, any and all
moneys, claims and other amounts due or to become due at any time in respect of
or arising out of any Collateral; (3) sign and indorse any invoice,
freight or express bill, bill of lading, storage or warehouse receipt, draft
against debtors, assignment, verification, notice or other document in
connection with any of the Collateral; (4) commence and prosecute any
suit, action or proceeding at law or in equity in any court of competent
jurisdiction to collect the Collateral or any portion thereof and to enforce
any other right in respect of any Collateral; (5) defend any suit, action
or proceeding brought against such Grantor with respect to any Collateral; (6) settle,
compromise or adjust any such suit, action or proceeding and, in connection
therewith, give such discharges or releases as the Administrative Agent may
deem appropriate; (7) assign any Copyright, Patent or Trademark,
throughout the world for such term or terms, on such conditions, and in such
manner, as the Administrative Agent shall in its sole discretion determine; (8) vote
any right or interest with respect to any Investment Property; (9) order good
standing certificates and conduct lien searches in respect of such
jurisdictions or offices as the Administrative Agent may deem appropriate; and (10) generally
sell, transfer, pledge and make any agreement with respect to or otherwise deal
with any of the Collateral as fully and completely as though the Administrative
Agent were the absolute owner thereof for all purposes, and do, at the
Administrative Agent’s option and such Grantor’s expense, at any time, or from
time to time, all acts and things which the Administrative Agent deems
necessary to protect, preserve or realize upon the Collateral and the
Administrative Agent’s security interests therein and to effect the intent of
this Agreement, all as fully and effectively as such Grantor might do.

 

Anything in this Section 7.1(a) to
the contrary notwithstanding, the Administrative Agent agrees that it will not
exercise any right under the power of attorney provided for in this Section 7.1(a) unless
an Event of Default shall have occurred and be continuing.

 

(b)         If
any Grantor fails to perform or comply with any of its agreements contained
herein, the Administrative Agent, at its option, but without any obligation so
to do, may perform or comply, or otherwise cause performance or compliance,
with such agreement.

 

(c)          Each
Grantor hereby ratifies all that such attorneys shall lawfully do or cause to
be done by virtue hereof.  All powers,
authorizations and agencies contained in this Agreement are coupled with an
interest and are irrevocable until this Agreement is terminated and the
security interests created hereby are released.

 

7.2                                 Duty
of Administrative Agent.  The
Administrative Agent’s sole duty with respect to the custody, safekeeping and
physical preservation of the Collateral in its possession shall be to deal with
it in the same manner as the Administrative Agent deals with similar property
for its own account.  Neither the
Administrative Agent or any Lender nor any of their respective officers,
directors, employees or agents shall be liable for any failure to demand,
collect or realize upon any of the Collateral or for any delay in doing so or
shall be under any obligation to sell or otherwise dispose of any Collateral
upon the request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof.  The powers conferred on the Administrative
Agent and the Lenders hereunder are solely to protect the 

 

24

 

Administrative Agent’s and the Lenders’ interests in
the Collateral and shall not impose any duty upon the Administrative Agent or
any Lender to exercise any such powers. 
The Administrative Agent and the Lenders shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers,
and neither they nor any of their officers, directors, employees or agents
shall be responsible to any Grantor for any act or failure to act hereunder.

 

7.3                                 Authority
of Administrative Agent.  Each
Grantor acknowledges that the rights and responsibilities of the Administrative
Agent under this Agreement with respect to any action taken by the
Administrative Agent or the exercise or non-exercise by the Administrative
Agent of any option, voting right, request, judgment or other right or remedy
provided for herein or resulting or arising out of this Agreement shall, as
between the Administrative Agent and the Lenders, be governed by the Credit
Agreement and by such other agreements with respect thereto as may exist from
time to time among them, but, as between the Administrative Agent and the
Grantors, the Administrative Agent shall be conclusively presumed to be acting
as agent for the Lenders with full and valid authority so to act or refrain
from acting, and no Grantor shall be under any obligation, or entitlement, to
make any inquiry respecting such authority.

 

SECTION 8                                   MISCELLANEOUS.

 

8.1                                 Amendments
in Writing.  None of the terms or
provisions of this Agreement may be waived, amended, supplemented or otherwise
modified except (i) for amendments, supplements or modifications to the
schedules hereto as expressly contemplated herein or in connection with a
joinder agreement in accordance with Section 8.16 or (ii) in
accordance with Section 15.1 of the Credit Agreement.

 

8.2                                 Notices.  All notices, requests and demands to or upon
the Administrative Agent or any Grantor hereunder shall be addressed to the
Company and effected in the manner provided for in Section 15.3 of
the Credit Agreement and each Grantor hereby appoints the Company as its agent
to receive notices hereunder.

 

8.3                                 Indemnification
by Grantors.  THE
GRANTORS, JOINTLY AND SEVERALLY, HEREBY AGREE TO INDEMNIFY, EXONERATE AND HOLD
THE ADMINISTRATIVE AGENT AND EACH LENDER (EACH A “LENDER PARTY” AND
COLLECTIVELY THE “LENDER PARTIES”) FREE AND HARMLESS FROM AND AGAINST ANY AND
ALL INDEMNIFIED LIABILITIES, INCURRED BY THE LENDER PARTIES OR ANY OF THEM AS A
RESULT OF, OR ARISING OUT OF, OR RELATING TO (A) ANY TENDER OFFER, MERGER,
PURCHASE OF EQUITY INTERESTS, PURCHASE OF ASSETS (INCLUDING THE RELATED
TRANSACTIONS) OR OTHER SIMILAR TRANSACTION FINANCED OR PROPOSED TO BE FINANCED
IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, WITH THE PROCEEDS OF ANY OF THE
LOANS, (B) THE USE, HANDLING, RELEASE, EMISSION, DISCHARGE, TRANSPORTATION,
STORAGE, TREATMENT OR DISPOSAL OF ANY HAZARDOUS SUBSTANCE AT ANY PROPERTY OWNED
OR LEASED BY ANY GRANTOR, (C) ANY VIOLATION OF ANY ENVIRONMENTAL LAWS WITH
RESPECT TO CONDITIONS AT ANY PROPERTY OWNED OR LEASED BY ANY GRANTOR OR THE
OPERATIONS CONDUCTED THEREON, (D) THE INVESTIGATION, CLEANUP OR 

 

25

 

REMEDIATION OF OFFSITE LOCATIONS AT WHICH ANY LOAN
PARTY OR THEIR RESPECTIVE PREDECESSORS ARE ALLEGED TO HAVE DIRECTLY OR
INDIRECTLY DISPOSED OF HAZARDOUS SUBSTANCES OR (E) THE EXECUTION,
DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT BY ANY OF THE LENDER PARTIES, EXCEPT FOR ANY SUCH INDEMNIFIED
LIABILITIES ARISING ON ACCOUNT OF THE APPLICABLE LENDER PARTY’S GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL, NONAPPEALABLE
JUDGMENT BY A COURT OF COMPETENT JURISDICTION. 
IF AND TO THE EXTENT THAT THE FOREGOING UNDERTAKING MAY BE
UNENFORCEABLE FOR ANY REASON, EACH GRANTOR HEREBY AGREES TO MAKE THE MAXIMUM
CONTRIBUTION TO THE PAYMENT AND SATISFACTION OF EACH OF THE INDEMNIFIED
LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW.  ALL OBLIGATIONS PROVIDED FOR IN THIS SECTION 8.3
SHALL SURVIVE REPAYMENT OF ALL (AND SHALL BE) SECURED OBLIGATIONS (AND
TERMINATION OF ALL COMMITMENTS UNDER THE CREDIT AGREEMENT), ANY FORECLOSURE
UNDER, OR ANY MODIFICATION, RELEASE OR DISCHARGE OF, ANY OR ALL OF THE
COLLATERAL DOCUMENTS AND TERMINATION OF THIS AGREEMENT.

 

8.4                                 Enforcement
Expenses.  (a) Each Grantor
agrees, on a joint and several basis, to pay or reimburse on demand each Lender
and the Administrative Agent for all reasonable out-of-pocket costs and
expenses (including Attorney Costs) incurred in collecting against any
Guarantor under the guaranty contained in Section 2 or otherwise
enforcing or preserving any rights under this Agreement and the other Loan
Documents.

 

(b)         Each
Grantor agrees to pay, and to save the Administrative Agent and the Lenders
harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all stamp, excise, sales or other taxes which may be
payable or determined to be payable with respect to any of the Collateral or in
connection with any of the transactions contemplated by this Agreement.

 

(c)          The
agreements in this Section 8.4 shall survive repayment of all (and
shall be) Secured Obligations (and termination of all commitments under the
Credit Agreement), any foreclosure under, or any modification, release or
discharge of, any or all of the Collateral Documents and termination of this
Agreement.

 

8.5                                 Captions.  Section captions used in this Agreement
are for convenience only and shall not affect the construction of this
Agreement.

 

8.6                                 Nature
of Remedies.  All Secured Obligations
of each Grantor and rights of the Administrative Agent and the Lenders
expressed herein or in any other Loan Document shall be in addition to and not
in limitation of those provided by applicable law.  No failure to exercise and no delay in
exercising, on the part of the Administrative Agent or any Lender, any right,
remedy, power or privilege hereunder, shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege.

 

26

 

8.7                                 Counterparts.  This Agreement may be executed in any
number of counterparts and by the different parties hereto on separate
counterparts and each such counterpart shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same
Agreement.  Receipt by telecopy of any
executed signature page to this Agreement or any other Loan Document shall
constitute effective delivery of such signature page.

 

8.8                                 Severability.  The illegality or unenforceability of any
provision of this Agreement or any instrument or agreement required hereunder
shall not in any way affect or impair the legality or enforceability of the
remaining provisions of this Agreement or any instrument or agreement required
hereunder.

 

8.9                                 Entire
Agreement.  This Agreement, together
with the other Loan Documents, embodies the entire agreement and understanding
among the parties hereto and supersedes all prior or contemporaneous agreements
and understandings of such Persons, verbal or written, relating to the subject
matter hereof and thereof and any prior arrangements made with respect to the
payment by any Grantor of (or any indemnification for) any fees, costs or
expenses payable to or incurred (or to be incurred) by or on behalf of the
Administrative Agent or the Lenders.

 

8.10                           Successors;
Assigns.  This Agreement shall
be binding upon Grantors, the Lenders and the Administrative Agent and
their respective successors and assigns, and shall inure to the benefit of the
Grantors, the Lenders and the Administrative Agent and the successors and
assigns of the Lenders and the Administrative Agent.  No other Person shall be a direct or indirect
legal beneficiary of, or have any direct or indirect cause of action or claim
in connection with, this Agreement or any of the other Loan Documents.  No Grantor may assign or transfer any of its
rights or Obligations under this Agreement without the prior written consent of
the Administrative Agent.

 

8.11                           Governing
Law.  THIS AGREEMENT SHALL BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE,
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

8.12                           Forum
Selection; Consent to Jurisdiction. 
ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH THIS AGREEMENT SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS
OF THE STATE OF ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT NOTHING IN THIS AGREEMENT
SHALL BE DEEMED OR OPERATE TO PRECLUDE THE ADMINISTRATIVE AGENT FROM BRINGING
SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION.  EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY
SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND OF THE
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE
PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE.  EACH GRANTOR FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS.  EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY 

 

27

 

OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED
TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

 

8.13                           Waiver
of Jury Trial.  EACH GRANTOR, THE
ADMINISTRATIVE AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY
IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS
AGREEMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR
WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH AND AGREES
THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE
A JURY.

 

8.14                           Set-off.  Each Grantor agrees that the Administrative
Agent and each Lender have all rights of set-off and bankers’ lien provided by
applicable law, and in addition thereto, each Grantor agrees that at any time
any Event of Default under Section 13.1.1 or 13.1.4 of the Credit Agreement
exists, the Administrative Agent and each Lender may apply to the payment of
any Secured Obligations, whether or not then due, any and all balances,
credits, deposits, accounts or moneys of such Grantor then or thereafter with
the Administrative Agent or such Lender.

 

8.15                           Acknowledgements.  Each Grantor hereby acknowledges that:

 

(a)                                  it
has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party;

 

(b)                                 neither
the Administrative Agent nor any Lender has any fiduciary relationship with or
duty to any Grantor arising out of or in connection with this Agreement or any
of the other Loan Documents, and the relationship between the Grantors, on the
one hand, and the Administrative Agent and the Lenders, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

 

(c)                                  no
joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or
among the Grantors and the Lenders.

 

8.16                           Additional
Grantors.  Each Loan Party that is
required to become a party to this Agreement pursuant to Section 10.10
of the Credit Agreement shall become a Grantor for all purposes of this
Agreement upon execution and delivery by such Loan Party of a joinder agreement
in the form of Annex I hereto.

 

8.17                           Releases.  (a) Upon the Satisfaction Time, the
Collateral shall be released from the Liens created hereby, and this Agreement
and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent and each Grantor hereunder shall
terminate, all without delivery of any instrument or performance of any act by
any party, and all rights to the Collateral shall revert to the Grantors.  At the request and sole expense of any
Grantor following any such termination, the Administrative Agent shall deliver
to the Grantors 

 

28

 

any Collateral held by the Administrative Agent
hereunder, and execute and deliver to the Grantors such documents as the
Grantors shall reasonably request to evidence such termination.

 

(b)         If
any of the Collateral shall be sold, transferred or otherwise disposed of by
any Grantor in a transaction permitted by the Credit Agreement, then the
Administrative Agent, at the request and sole expense of such Grantor, shall
execute and deliver to such Grantor all releases or other documents reasonably
necessary or desirable for the release of the Liens created hereby on such
Collateral.  At the request and sole
expense of the Company, a Guarantor shall be released from its obligations
hereunder in the event that such Guarantor ceases to be a Subsidiary pursuant
to a transaction permitted by the Credit Agreement; provided that the
Company shall have delivered to the Administrative Agent, with reasonable
notice prior to the date of the proposed release, a written request for release
identifying the relevant Guarantor and the terms of relevant transaction in
reasonable detail, together with a certification by the Company stating that
such transaction is in compliance with the Credit Agreement and the other Loan
Documents.

 

8.18                           Obligations
and Liens Absolute and Unconditional. 
Each Grantor understands and agrees that the obligations of each Grantor
under this Agreement shall be construed as continuing, absolute and
unconditional without regard to (a) the validity or enforceability of any
Loan Document, any of the Secured Obligations or any other collateral security
therefor or guaranty or right of offset with respect thereto at any time or
from time to time held by the Administrative Agent or any Lender, (b) any
defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by any
Grantor or any other Person against the Administrative Agent or any Lender, or (c) any
other circumstance whatsoever (with or without notice to or knowledge of any
Grantor) which constitutes, or might be construed to constitute, an equitable
or legal discharge of any Grantor for the Secured Obligations, in bankruptcy or
in any other instance.  When making any
demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Grantor, the Administrative Agent or any Lender may, but shall be
under no obligation to, make a similar demand on or otherwise pursue such
rights and remedies as it may have against any other Grantor or any other
Person or against any collateral security or guaranty for the Secured
Obligations or any right of offset with respect thereto, and any failure by the
Administrative Agent or any Lender to make any such demand, to pursue such
other rights or remedies or to collect any payments from any other Grantor or
any other Person or to realize upon any such collateral security or guaranty or
to exercise any such right of offset, or any release of any other Grantor or
any other Person or any such collateral security, guaranty or right of offset,
shall not relieve any Grantor of any obligation or liability hereunder, and
shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Administrative Agent or any Lender against
any Grantor.  For the purposes hereof “demand”
shall include the commencement and continuance of any legal proceedings.

 

8.19                           Reinstatement.  This Agreement shall remain in full force and
effect and continue to be effective should any petition be filed by or against
any Grantor or any Issuer for liquidation or reorganization, should any Grantor
or any Issuer become insolvent or make an assignment for the benefit of
creditors or should a receiver or trustee be appointed for all or any
significant part of any Grantor’s or any Issuer’s assets, and shall continue to
be effective or be reinstated, as the 

 

29

 

case may be, if at any time payment and performance of
the Secured Obligations, or any part thereof, is, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by
any obligee of the Secured Obligations, whether as a “voidable preference”, “fraudulent
conveyance”, or otherwise, all as though such payment or performance had not
been made.  In the event that any
payment, or any part thereof, is rescinded, reduced, restored or returned, the
Secured Obligations shall be reinstated and deemed reduced only by such amount
paid and not so rescinded, reduced, restored or returned.

 

[signature pages follow]

 

30

 

Each of the undersigned has caused this Guaranty and
Collateral Agreement to be duly executed and delivered as of the date first
above written.

 

 

	
   

  	
  KANBAY
  INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ William Weissman

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KANBAY
  INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ William Weissman

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KANBAY GLOBAL
  SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ William Weissman

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ACCURUM, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ William Weissman

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KANBAY (JAPAN)
  INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ William Weissman

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KANBAY
  CONSULTING, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ William Weissman

  	
   

  
	
   

  	
  Title:

  	
  Treasurer

  	
   

  
							

 

 

	
   

  	
  LASALLE BANK
  NATIONAL ASSOCIATION, 

  as Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Daniel E.
  Sullivan, Jr.

  	
   

  
	
   

  	
  Title:

  	
  1st Vice
  President

  	
   

  
					

 

 

SCHEDULE 1

 

INVESTMENT
PROPERTY

 

A.                                    PLEDGED
EQUITY

 

	
  Grantor (owner of 

  Record of such 

  Pledged Equity)

  	
   

  	
  Issuer

  	
   

  	
  Pledged 

  Equity 

  Description

  	
   

  	
  Percentage 

  of Issuer

  	
   

  	
  Certificate 

  (Indicate 

  No.)

  
	
  Kanbay International, Inc.

  	
   

  	
  Accurum, Inc.

  	
   

  	
  8,679,998 shares of common stock

  	
   

  	
  100

  	
  %

  	
  011

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  Kanbay Global Services, Inc.

  	
   

  	
  10,000 shares of common stock

  	
   

  	
  100

  	
  %

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  Kanbay (Japan) Incorporated

  	
   

  	
  10,000 shares of common stock

  	
   

  	
  100

  	
  %

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  Kanbay Incorporated

  	
   

  	
  1,000 shares of common stock

  	
   

  	
  100

  	
  %

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  Kanbay Limited

  	
   

  	
  397,800 shares of common stock

  	
   

  	
  65

  	
  %

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  SSS Holdings Corporation Limited

  	
   

  	
  45,000 shares of common stock

  	
   

  	
  49

  	
  %

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  Kanbay Managed
  Solutions, Inc.

  	
   

  	
  33,333 shares of common stock

  	
   

  	
  3.33

  	
  %

  	
  001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  Kanbay Managed
  Solutions, Inc.

  	
   

  	
  666,667 shares of common stock

  	
   

  	
  66.67

  	
  %

  	
  003

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  Kanbay Managed
  Solutions, Inc.

  	
   

  	
  100,000 shares of common stock

  	
   

  	
  10

  	
  %

  	
  004

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  Kanbay India Software Pvt. Ltd

  	
   

  	
  2,000 Equity shares

  	
   

  	
  .008

  	
  %

  	
  To Come

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay International, Inc.

  	
   

  	
  Kanbay Consulting, LLC

  	
   

  	
  100 common membership units

  	
   

  	
  100

  	
  %

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  Logicspan Acquisition, Inc.

  	
   

  	
  10 shares of common
  stock

  	
   

  	
  100

  	
  %

  	
  2

  

 

 

	
  Kanbay Consulting, LLC

  	
   

  	
  Gazelle
  Consulting, Inc.

  	
   

  	
  100 shares of common
  stock

  	
   

  	
  100

  	
  %

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  Adjoined
  Consulting Limited

  	
   

  	
  199 shares of common stock

  	
   

  	
  99.5

  	
  %

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  Adjoined International,
  LLC

  	
   

  	
  100 Common units

  	
   

  	
  100

  	
  %

  	
  2

  

 

B.                                    PLEDGED
NOTES

 

	
  Grantor
  (owner of Record 

  of such Pledged Notes)

  	
   

  	
  Issuer

  	
   

  	
  Pledged Notes 

  Description

  
	
  •  Kanbay International, Inc.

  •  Kanbay Incorporated

  •  Kanbay Global Services, Inc.

  •  Kanbay (Japan) Incorporated

  •  Kanbay Consulting, LLC

  •  Accurum, Inc.

  •  Adjoined International, LLC

  	
   

  	
  •  Kanbay International, Inc.

  •  Kanbay Incorporated

  •  Kanbay Global Services, Inc.

  •  Accurum, Inc.

  •  Kanbay Managed Solutions, Inc.

  •  Kanbay (Japan) Incorporated

  •  Kanbay Consulting, LLC

  •  Logicspan Acquisition, Inc.

  •  Gazelle Consulting, Inc.

  •  Adjoined International, LLC

  •  Kanbay Canada Inc

  •  Kanbay Pty Ltd

  •  Kanbay Europe Ltd

  •  Kanbay HK Ltd

  •  Kanbay Australia Pty Ltd

  •  Kanbay Managed Solutions (Canada)

  •  Accurum India Private Ltd

  •  Accurum Consulting Limited

  •  Kanbay Limited

  •  Kanbay (Singapore) Pte Ltd

  •  Kanbay Asia Limited

  •  Kanbay India Software Pvt. Ltd

  •  Adjoined Consulting Limited

  	
   

  	
  Global
  Intercompany Note

  

 

 

Notes owing from former Adjoined option holders referenced on Schedule 11.10
to the Credit Agreement. Notwithstanding any representation or covenant to the
contrary, these notes will not be delivered to the Agent.

 

C.                                    OTHER
INVESTMENT PROPERTY

 

	
  Grantor

  	
   

  	
  Investment Property

  Description

  	
   

  	
  Contact Information

  
	
  Kanbay
  International, Inc.

  	
   

  	
  Discretionary
  investment account with HSBC Investments valued as of 1/31/06 at
  $28,532,287.29

  	
   

  	
  Mary Ellen
  McPhelim

  452 5th Ave., 18th Floor,

  New York, NY 10018

  

  T: (212) 525-4573

  F: (917) 229-5145

  Email: maryellen.mcphelim@us.hsbc.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay
  International, Inc.

  	
   

  	
  Discretionary
  investment account with UBS Financial Services Inc. valued as of 1/31/06 at
  $28,627,503.00

  	
   

  	
  Paul G. Tashima

  The UBS Tower 

  One North Wacker Drive, 25th Floor 

  Chicago, Illinois 60606

  

  T: 800/372-1993

  F: 312/525-4656

  Email: paul.tashima@ubs.com

  

 

 

SCHEDULE 2

 

FILINGS
AND PERFECTION

 

	
  GRANTOR

  	
   

  	
  FILING REQUIREMENT

  OR OTHER ACTION

  	
   

  	
  FILING OFFICE

  
	
  Kanbay
  International, Inc.

  	
   

  	
  Filing of UCC financing statement

  	
   

  	
  DE Secretary of State

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay
  Incorporated

  	
   

  	
  Filing of UCC financing statement

  	
   

  	
  IL Secretary of State

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Global
  Services, Inc.

  	
   

  	
  Filing of UCC financing statement

  	
   

  	
  IL Secretary of State

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accurum, Inc.

  	
   

  	
  Filing of UCC financing statement

  	
   

  	
  NJ Division of Commercial Recording

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay (Japan)
  Incorporated

  	
   

  	
  Filing of UCC financing statement

  	
   

  	
  IL Secretary of State

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay
  Consulting, LLC

  	
   

  	
  Filing of UCC financing statement

  	
   

  	
  DE Secretary of State

  

 

 

SCHEDULE 3

 

GRANTOR
INFORMATION

 

	
  GRANTOR

  (exact legal name)

  	
   

  	
  JURISDICTION 

  OF 

  ORGANIZATION

  	
   

  	
  ORGANIZATIONAL 

  AND FEDERAL 

  EMPLOYER 

  IDENTIFICATION 

  NUMBER

  	
   

  	
  CHIEF EXECUTIVE OFFICE

  
	
  Kanbay
  International, Inc.

  	
   

  	
  Delaware

  	
   

  	
  3248090

  

  36-4387594

  	
   

  	
  6400 Shafer Court, 

  Suite 100

  Rosemont, Illinois 

  60018

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Incorporated

  	
   

  	
  Illinois

  	
   

  	
  55390207

  

  36-6899979

  	
   

  	
  6400 Shafer Court, 

  Suite 100

  Rosemont, Illinois 

  60018

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Global
  Services, Inc.

  	
   

  	
  Illinois

  	
   

  	
  63568201

  

  36-4554394

  	
   

  	
  6400 Shafer Court, 

  Suite 100

  Rosemont, Illinois 

  60018

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accurum, Inc.

  	
   

  	
  New Jersey

  	
   

  	
  0100633206

  

  22-3388177

  	
   

  	
  Harborside
  Financial 

  Center Plaza 5

  Suite 1700

  Jersey City, NJ 07311

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay (Japan)
  Incorporated

  	
   

  	
  Illinois

  	
   

  	
  61782982

  

  36-4464891

  	
   

  	
  6400 Shafer Court, 

  Suite 100

  Rosemont, Illinois 

  60018

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay
  Consulting, LLC

  	
   

  	
  Delaware

  	
   

  	
  4107653

  

  20-4305183

  	
   

  	
  6400 Shafer Court, 

  Suite 100

  Rosemont, Illinois 

  60018

  

 

 

SCHEDULE 4

 

A.                                    COLLATERAL
LOCATIONS

 

	
  GRANTOR(1)

  	
   

  	
  COLLATERAL

  LOCATION

  OR PLACE OF BUSINESS 

  (INCLUDING CHIEF EXECUTIVE 

  OFFICE)

  	
   

  	
  OWNER/LESSOR

  (IF LEASED)

  
	
  Kanbay Incorporated

  	
   

  	
  6400 Shafer Court, Suite 100 and 500

  Rosemont, Illinois 60018

  	
   

  	
  CAPCO 1998-D7 Rosemont Office, LLC

  

  Grubb and Ellis

  6400 Shafer Court Suite 175

  Rosemont IL 60018 Att: Marybeth Rhebergen

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Incorporated

  	
   

  	
  1200 Avenue of the Americas

  New York, NY 10036

  	
   

  	
  Barick Associates, LLC

  

  15 W. 39th Street

  15th Floor

  New York, NY 10018

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Incorporated

  	
   

  	
  401 N Tryon St

  10th floor

  Charlotte NC 28202

  	
   

  	
  Regus Business Centres Corp.

  

  One Stamford Plaza, 263 Tresser

  Blvd, 9th Floor

  Stamford, CT 06901

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accurum, Inc.

  	
   

  	
  Harborside Financial Center Plaza 5

  Suite 1700

  Jersey City, NJ 07311

  	
   

  	
  Cal-Harbor V Leasing Associates L.L.C.

  

  c/o Mack-Cali Realty Corporation,

  11 Commerce Drive,

  Cranford NJ 07016

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accurum, Inc.

  	
   

  	
  20 River
  Court

  Apt 0709

  Jersey City, NJ 07310

  	
   

  	
  Tower
  America Management, L.L.C.

  

  25 River Court
Jersey City, NJ
  07310

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.)

  	
   

  	
  5301 Blue Lagoon Drive, Suite 700

  Miami, Florida 33126

  	
   

  	
  Teachers
  Insurance and

  Annuity Association of

  America

  
The Hogan Group
5200 Blue Lagoon Drive,
  Suite 430
Miami, FL 33126

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.)

  	
   

  	
  10 Exchange Place,
  Suite 802

  Jersey City, NJ 07302

  	
   

  	
  Merit Hudson Street
  Limited Partnership

  

  c/o Clarion Realty Services
Building Management Office
10 Exchange Place
Jersey City, NJ 07302

  

 

(1)  In this Schedule, the entity that is party to
the lease for the location in question is listed as the Grantor.  However, at any given time any of the Grantors
may have collateral located at any of these locations. 

 

 

	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.)

  	
   

  	
  2002 Summit Blvd

  Suite 1200
Atlanta, Georgia 30319

  	
   

  	
  Perimeter Parcel 2

  Limited Partnership

  

  Five Ravinia Drive

  Atlanta, GA 30364

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.)

  	
   

  	
  1050 Winter Street

  Waltham, Massachusetts 02451

  	
   

  	
  Plaut
  Consulting, Inc. (Sublessor)

  

  5555 Glenridge Connector

  Atlanta, GA 30342

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.) (Lease assigned
from Plaut Consulting Inc.)

  	
   

  	
  4645 E. Cotton Center Blvd

  Building 2, Suite 167

  Phoenix, Arizona 85040

  	
   

  	
  Carlson Real

  Estate Company
301 Carlson Parkway, Suite 100
Minnetonka, MN 55305

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.)

  	
   

  	
  45 Bartlett Street

  Marlborough, Massachusetts
  01752

  	
   

  	
  Genelco, Inc.

  

  10433 North Cave Creek Road

  P.O. Box 55029

  Phoenix, AZ 85078

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.)

  	
   

  	
  3000 Bayport Drive,
  Suite 400

  Tampa, Florida 33607

  	
   

  	
  Bayport
  Plaza Investors LLC

  

  c/o UBS Realty Investors LLC

  242 Trumbull Street

  Hartford, CT 06103

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.)

  	
   

  	
  106 Central Park South

  New York, NY 10019
(corporate apartment)

  	
   

  	
  Daniella
  Phillips

  

  137 W. 110th Street, #4E

  New York, NY 10026

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Christina Kheir assigned
to Adjoined Consulting,
Inc. (predecessor of Kanbay
  Consulting, LLC)

  	
   

  	
  1801 N. Flagler Dr. #206

  West Palm Beach, FL 33407
(corporate apartment)

  	
   

  	
  Jeffrey P and Holly B. Levine

  

  13568 Columbine Ave.

  Wellington, FL 33414

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.)

  	
   

  	
  64 Constitution

  Jersey City, NJ 07305
(corporate apartment)

  	
   

  	
  Slava
  Kalinin

  

  12 Highview Rd.

  Aurora Hills, NJ 07018

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  (as successor to Adjoined Consulting, Inc.)

  	
   

  	
  2326 Dulles Corner Blvd

  Herndon, VA 20171 (use of
office space and related services)

  	
   

  	
  Dulles
  Corner Office Center, LLC

  

  2326 Dulles Corner Blvd, Suite 500

  Herndon, VA 20171

  

 

 

B.                                    COLLATERAL
IN POSSESSION OF LESSOR,

BAILEE,
CONSIGNEE OR WAREHOUSEMAN

 

Same as A
above. 

 

 

SCHEDULE 5

 

INTELLECTUAL
PROPERTY

 

Patents
and Patent Licenses

 

• 
None

 

Trademarks
and Trademark Licenses

 

	
  Grantor

  	
   

  	
  Trademark 

  Number

  	
   

  	
  Trademark 

  Application 

  Number

  	
   

  	
  Trademark 

  Registration 

  Number

  	
   

  	
  Date of 

  Application

  	
   

  	
  Date of
 Registration

  
	
  Kanbay
  Incorporated

  	
   

  	
  75/339556

  	
   

  	
  Unknown

  	
   

  	
  2197911

  	
   

  	
  8/12/97

  	
   

  	
  10/20/1998

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay
  Incorporated

  	
   

  	
  75/339735

  	
   

  	
  Unknown

  	
   

  	
  2197916

  	
   

  	
  8/12/97

  	
   

  	
  10/20/1998

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay
  Incorporated

  	
   

  	
  75/828272

  	
   

  	
  Unknown

  	
   

  	
  2530483

  	
   

  	
  10/22/99

  	
   

  	
  1/15/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Incorporated

  	
   

  	
  75/912495

  	
   

  	
  Unknown

  	
   

  	
  2534759

  	
   

  	
  2/4/00

  	
   

  	
  1/29/02

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Incorporated

  	
   

  	
  78/769627

  	
   

  	
  Unknown

  	
   

  	
  Trademark Pending

  	
   

  	
  12/8/05

  	
   

  	
  Trademark Pending

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Incorporated

  	
   

  	
  78/591658

  	
   

  	
  Unknown

  	
   

  	
  Trademark Pending

  	
   

  	
  3/21/05

  	
   

  	
  Trademark Pending

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC (successor to Adjoined Consulting, Inc.)

  	
   

  	
  76/294721

  	
   

  	
  Unknown

  	
   

  	
  Unknown

  	
   

  	
  Unknown

  	
   

  	
  4/15/03

  

 

Copyrights

 

•  None

 

 

SCHEDULE 6

 

DEPOSITARY AND OTHER DEPOSIT ACCOUNTS

 

	
  GRANTOR

  	
   

  	
  FINANCIAL
  

  INSTITUTION

  	
   

  	
  ACCOUNT
  

  NUMBER

  	
   

  	
  CONTACT
  

  INFORMATION

  
	
  Accurum, Inc.

  	
   

  	
  PNC Bank

  	
   

  	
  8104241585

  	
   

  	
  Ann Marie Samodovitz

  One Exchange Place

  Jersey City, NJ 07302

  

  P: 201-915-1754

  Email: annamaria.samodovitz@pncbank.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accurum, Inc.

  	
   

  	
  PNC Bank

  	
   

  	
  8025418901

  	
   

  	
  Ann Marie Samodovitz

  One Exchange Place

  Jersey City, NJ 07302

  

  P: 201-915-1754

  Email: annamaria.samodovitz@pncbank.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Incorporated

  	
   

  	
  Silicon Valley Bank

  	
   

  	
  3300229901

  	
   

  	
  Maggie Kimbro

  230 W. Monroe

  Suite 720

  Chicago, IL 60606

  

  P: 312-704-9506

  F: 312-704-1532

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay
  International, Inc.

  	
   

  	
  Silicon Valley Bank

  	
   

  	
  3300255047

  	
   

  	
  Maggie Kimbro

  230 W. Monroe

  Suite 720

  Chicago, IL 60606

  

  P: 312-704-9506

  F: 312-704-1532

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay (Japan) Incorporated

  	
   

  	
  Silicon Valley Bank

  	
   

  	
  3300400802

  	
   

  	
  Maggie Kimbro

  230 W. Monroe

  Suite 720

  Chicago, IL 60606

  

  P: 312-704-9506

  F: 312-704-1532

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Global Services, Inc.

  	
   

  	
  Silicon Valley Bank

  	
   

  	
  3300441384

  	
   

  	
  Maggie Kimbro

  230 W. Monroe

  Suite 720

  Chicago, IL 60606

  

  P: 312-704-9506

  F: 312-704-1532

  

 

 

	
  Kanbay Global Services, Inc.

  	
   

  	
  Citibank Dublin

  	
   

  	
  0012041004

  	
   

  	
  Molly A. Peters

  Citibank

  500 W. Madison, Chicago, 

  IL 60661

  

  phone: 312.627.3322

  fax: 312.627.3320

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay (Japan) Inc.

  	
   

  	
  Mizuho Bank

  	
   

  	
  3589874

  	
   

  	
  Shibuyal 24-16

  Shibuya, Shibuya-ku

  Tokyo 150-0002

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  Wachovia Bank NA

  	
   

  	
  2000016079984

  	
   

  	
  Ronnie Seiber

  200 S. Biscayne Blvd.

  11th Floor

  Miami, FL 33131

  

  P: 305-789-4927

  Cell: 305-205-4951

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  Wachovia Bank NA

  	
   

  	
  200001424061

  	
   

  	
  Ronnie Seiber

  200 S. Biscayne Blvd.

  11th Floor

  Miami, FL 33131

  

  P: 305-789-4927

  Cell: 305-205-4951

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  Wachovia Bank NA

  	
   

  	
  2000023599075

  	
   

  	
  Ronnie Seiber

  200 S. Biscayne Blvd.

  11th Floor

  Miami, FL 33131

  

  P: 305-789-4927

  Cell: 305-205-4951

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  Wachovia Bank NA

  	
   

  	
  2000023592360

  	
   

  	
  Ronnie Seiber

  200 S. Biscayne Blvd.

  11th Floor

  Miami, FL 33131

  

  P: 305-789-4927

  Cell: 305-205-4951

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  Wachovia Bank NA

  	
   

  	
  2000023592373

  	
   

  	
  Ronnie Seiber

  200 S. Biscayne Blvd.

  11th Floor

  Miami, FL 33131

  

  P: 305-789-4927

  Cell: 305-205-4951

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  Northern Trust Bank of
  Florida

  	
   

  	
  NT2-051268

  	
   

  	
  Carol Reinsma

  700 Brickell Avenue

  Miami, FL 33131

  

  P: 305-789-1419

  

 

 

	
  Kanbay Consulting, LLC

  	
   

  	
  RBTT Bank Jamaica Limited

  	
   

  	
  0341700004122

  	
   

  	
  Marcia Walters

  17 Dominica Drive

  Kingston 5, Jamaica

  

  P: 876-960-2340 -2355

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kanbay Consulting, LLC

  	
   

  	
  RBTT Bank Jamaica Limited

  	
   

  	
  0341330000279

  	
   

  	
  Marcia Walters

  17 Dominica Drive

  Kingston 5, Jamaica

  

  P: 876-960-2340 -2355

  

 

 

SCHEDULE 7

 

COMMERCIAL
TORT CLAIMS

 

None

 

 

ANNEX I

 

FORM OF
JOINDER TO GUARANTY AND COLLATERAL AGREEMENT

 

This JOINDER AGREEMENT (this “Agreement”)
dated as of [         ], 20   
is executed by the undersigned for the benefit of LaSalle Bank National
Association, as the Administrative Agent (the “Administrative Agent”) in
connection with that certain Guaranty and Collateral Agreement dated as of March [   ],
2006 among the Grantors party thereto and the Administrative Agent (as amended,
restated, supplemented or modified from time to time, the “Guaranty and
Collateral Agreement”).  Capitalized
terms not otherwise defined herein are being used herein as defined in the
Guaranty and Collateral Agreement.

 

Each Person signatory
hereto is required to execute this Agreement pursuant to Section 8.16
of the Guaranty and Collateral Agreement.

 

In consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
each signatory hereby agrees as follows:

 

1.                                       Each
such Person assumes all the obligations of a Grantor and a Guarantor under the
Guaranty and Collateral Agreement and agrees that such person or entity is a
Grantor and a Guarantor and bound as a Grantor and a Guarantor under the terms
of the Guaranty and Collateral Agreement, as if it had been an original
signatory to such agreement.  In
furtherance of the foregoing, such Person hereby assigns, pledges and grants to
the Administrative Agent a security interest in all of its right, title and
interest in and to the Collateral owned thereby to secure the Secured
Obligations.

 

2.                                       Schedules 1, 2, 3, 4, 5, 6 and 7 of the
Guaranty and Collateral Agreement are hereby amended to add the information
relating to each such Person set out on Schedules 1, 2, 3, 4, 5, 6 and 7
respectively, hereof.  Each such Person
hereby makes to the Administrative Agent the representations and warranties set
forth in the Guaranty and Collateral Agreement applicable to such Person and
the applicable Collateral and confirms that such representations and warranties
are true and correct after giving effect to such amendment to such Schedules
(it being understood that any such representation or warranty stated to be made
as of the date of the Guaranty and Collateral Agreement shall be deemed to be
made on the date of this Agreement).

 

3.                                       In furtherance of its obligations under Section 5.2
of the Guaranty and Collateral Agreement, each such Person agrees to deliver to
the Administrative Agent appropriately complete UCC financing statements naming
such person or entity as debtor and the Administrative Agent as secured party,
and describing its Collateral and such other documentation as the
Administrative Agent (or its successors or assigns) may require to evidence,
protect and perfect the Liens created by the Guaranty and Collateral Agreement,
as modified hereby.  Each such Person
acknowledges the authorizations given to the Administrative Agent under Section 5.10(b) of
the Guaranty and Collateral Agreement and otherwise.

 

4.                                       Each such Person’s address for notices
under the Guaranty and Collateral Agreement shall be the address of the Company
set forth in the Credit Agreement and each such Person hereby appoints the
Company as its agent to receive notices hereunder.

 

 

5.                                       This
Agreement shall be deemed to be part of, and a modification to, the Guaranty
and Collateral Agreement and shall be governed by all the terms and provisions
of the Guaranty and Collateral Agreement, with respect to the modifications
intended to be made to such agreement, which terms are incorporated herein by
reference, are ratified and confirmed and shall continue in full force and
effect as valid and binding agreements of each such person or entity
enforceable against such person or entity. 
Each such Person hereby waives notice of the Administrative Agent’s
acceptance of this Agreement.  Each such
Person will deliver an executed original of this Agreement to the
Administrative Agent.

 

[add a signature block for each new Grantor]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]