Document:

Exhibit 10.10

              Exhibit 10.10 Credit Agreement, dated April 25, 2005.

                                CREDIT AGREEMENT
                                ----------------

     This Credit Agreement ("Agreement"), dated as of April 25, 2005, is by and
among ACROSS AMERICA REAL ESTATE DEVELOPMENT CORP., a Colorado corporation
("Company"), GDBA INVESTMENTS, LLLP, a Colorado limited liability limited
partnership, G. BRENT BACKMAN, and KAREN A. BACKMAN (collectively "Guarantor")
and VECTRA BANK COLORADO, NATIONAL ASSOCIATION ("Lender").

                                    RECITALS:
                                    ---------

     A. Company is engaged in the business of acquiring parcels of real estate
throughout the lower 48 states of the United States for build-to-suit small box
retail real estate construction projects to be leased and/or sold to various
credit tenants.

     B. Company has applied to Lender for a guidance line of credit facility for
individual development and construction loans to be made to the Company and its
operating subsidiaries, which, in the aggregate will not exceed $10,000,000.00
("Loans") for the purpose of acquiring parcels of land and to pay for the costs
incurred in the development and construction of the improvements required under
the leases to be approved by Lender, all in accordance with plans and
specifications to be approved by Lender.

         C. Lender has agreed to make a credit facility available to Company,
subject to Lender's credit approval and underwriting of the economics of each
such project, including, without limitation, Lender's approval of the lease,
budget, schedule, appraisal, construction contracts, title, zoning,
environmental condition and other aspects of each project, on the terms and
conditions stated herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                                   AGREEMENT:
                                   ----------
Section 1. Definitions.
-----------------------

The following words shall have the following meanings when used in this
Agreement.

     "Advance" or "Advances" shall mean a disbursement or disbursements made
under any Loan pursuant to the terms of the Loan Documents for the Project and
this Agreement.

     "Agreement" shall mean this Credit Agreement as may be amended or modified
from time to time, together with all exhibits and schedules attached to this
Agreement from time to time.

     "Approved Appraisal" shall mean an appraisal of the Project (i) ordered by
the Lender, (ii) prepared by an appraiser satisfactory to the Lender, (iii)
prepared in accordance with the requirements of Section 3.3, (iv) in compliance
with all federal and state standards for appraisals, (v) reviewed and approved
by the Lender and (vi) in a form and substance satisfactory to the Lender in its
sole discretion.

     "Approved Leases" shall mean the lease for the Project approved by Lender
subsequent to the Closing Date as more fully provided herein.

     "Borrower" shall mean the Company and each operating subsidiary of the
Company formed for each Project, collectively.

<PAGE>

     "Borrower's Deposits" shall mean such cash sums as may be deposited or may
be required to be deposited into the Collateral Account, including, but not
limited to, the proceeds from insurance claims, and additional sums deposited by
Borrower as required in this Agreement.

     "Borrower's Equity" shall mean the capital infusion contributed or to be
contributed by Borrower into the Project in the form of cash or Subordinated
Debt prior to any Advance under the Project Loan which shall be in the amount
not less than if Project Costs are equal to or less than the appraised value as
stated in the approved Appraisal, twenty-five percent (25%) of the Project Costs
up to the appraised value of the Real Property plus 100% Project Costs in excess
of the appraised value of the Real Property. In addition to the Borrower's
Equity requirement, the Borrower is obligated to fund cost overruns as provided
in Section 4.5 below.

     "Business Day" means (i) with respect to any borrowing, payment or rate as
provided in the Note, a day (other than a Saturday or Sunday) on which banks
generally are open in Denver, Colorado for the conduct of substantially all of
their commercial lending activities and on which dealings in United States
dollars are carried on in the London interbank market and (ii) for all other
purposes, a day other than a Saturday, Sunday or any other day on which national
banking associations are authorized or obligated to close.

     "Certified" shall mean, in connection with any document or instrument to be
delivered to Lender, that the same is certified by a principal of Borrower, that
such document or instrument is true, complete and correct.

     "Closing Date" shall mean the date of the first Advance under each Loan.

     "Collateral" shall mean the Real Property, the Improvements, the Collateral
Account, and all other real and personal property in which Lender has obtained a
lien, security interest or assignment as described in any and all of the
Security Documents.

     "Collateral Account" shall mean a depository account to be opened and
maintained with Lender into which Lender may deposit Advances and in which
Borrower may be required, under the terms contained herein to deposit Borrower's
Deposits and other sums as described herein.

     "Completion Date" shall mean the date not later than the date scheduled for
occupancy of the Lessee under that applicable Approved Lease.

     "Construction Contracts" shall mean the construction and development
contracts between Borrower or its agents and all Contractors and other persons
for the construction of the Improvements, including, with limitation, the
General Contractor's Contract as may be amended from time to time with Lender's
consent as provided herein.

     "Contractors" shall mean the General Contractor and all architects,
engineers, subcontractors, sub-subcontractors, material suppliers or any other
party who might now or may in the future claim or have the right to claim a
mechanic's lien upon all or any portion of the Project.

                                        2
<PAGE>

     "Debt Service Coverage Ratio" means, for any period, the ratio calculated
by dividing the (i) proforma NOI of the Approved Lease before interest expense,
capitalized interest, taxes, amortization and depreciation for such period by
(ii) the amount equal to the principal and interest payments that would be due
and payable during a one year period based upon the amount necessary to fully
amortize a hypothetical loan in an amount equal to the Maximum Project Loan
Amount, using both (a) an interest rate equal to 2.20% plus the three-month
average Treasury rate (for treasuries having a ten (10) year maturity) as of the
last day of the most recent calendar month in equal installments over an assumed
amortization period of 25 years ("DSCR(a)"), and (b) an interest rate equal to
6.0% plus the three (3) month average Treasury rate (for treasuries having a ten
(10) year maturity) as of the last day of the most recent month in equal
installments over an assumed amortization period of 25 years ("DSCR(b)").

     "Deed of Trust" shall mean the deed of trust (or if approved by Lender, a
mortgage) to be delivered to Lender at each Closing for each Loan encumbering
the Real Property and the Improvements of the Project given by the owner for the
benefit of Lender, as the same may be amended, modified, extended, renewed,
restated, supplemented or partially released from time to time.

     "Event of Default" shall mean and include any of the Events of Default set
forth below in the section titled "Events of Default."

     "GAAP" shall mean generally accepted accounting principals consistently
applied.

     "GDBA" shall mean GDBA Investments, LLLP, a Colorado limited liability
limited partnership.

     "General Contractor" shall mean any contractor selected by Borrower and
approved by Lender to act as the general contractor for any Project.

     "Governmental Authority" shall mean the governmental or quasi-governmental
agency or board having zoning and land use authority over the Real Property.

     "Guaranty" shall mean the Unconditional Continuing Guaranty of Payment
executed by the Guarantor.

     "Guarantor" shall mean, collectively, GDBA Investments, LLLP, G. Brent
Backman and Karen A. Backman.

     "Improvements" shall mean the buildings and all improvements located on the
Real Property including, without limitation, foundations, all structural,
heating, air conditioning, ventilation and electrical improvements, all tenant
finish improvements, and the Improvements to be constructed with the proceeds of
the Loan.

     "Inspector" shall mean the consulting firm hired by Lender, at Borrower's
expense, to perform periodic observations of the Project and to advise Lender as
to conformance of the Improvements, as constructed, with the Construction
Contracts. The initial Inspector shall be as designated by Lender, and may be
changed from time to time in Lender's absolute discretion.

     "Interest Rate" shall mean the rate of interest to accrue on the
Obligations, which shall be the London Inter Bank Offered Rate plus 225 basis
points to be adjusted monthly as more fully provided in the Notes.

     "Lender" shall mean Vectra Bank Colorado, National Association, and its
successors and assigns.

                                        3
<PAGE>

     "Lessee" shall mean any one or more persons or entities who lease or occupy
space within the Project under an Approved Lease.

     "Liquidity" shall mean, at any time, the sum of (i) the unencumbered cash
of Guarantor, (ii) the value of the unencumbered cash equivalents (as determined
in accordance with GAAP) of Guarantor that are acceptable to Lender and (iii)
the value of any marketable securities owned by Guarantor that are acceptable to
Lender (Lender shall determine whether a security is marketable in its
reasonable judgment) that are not pledged as security for other debts; provided
that Liquidity shall not include amounts that Guarantor may be entitled to
Borrow under any lines of credit or other lending arrangements. Liquidity shall
be determined by Lender quarterly based upon the most recent bank and brokerage
account statements of Guarantor delivered to Lender pursuant to this Agreement.

     "Loan Documents" shall mean collectively this Agreement, all promissory
notes for the Loans, all construction loan agreements for each Project, the
Security Documents, and any other document now or hereafter evidencing or
securing the Loan as may be hereafter modified or amended.

     "Loan Expenses" shall mean all expenses, charges, costs and fees of Lender
referred to or necessitated by the terms of this Agreement, including, without
limitation, all recording and registration fees, charges and taxes, title
insurance charges and premiums, legal fees and disbursements of counsel for
Lender, documentation and processing fees, copying expenses, courier charges for
delivery of documents, loan commitment fees, costs of consultants retained by
Lender, long-distance telephone charges, costs of surveys, environmental audit
expenses, fees of any architect or engineer and other professional retained by
Lender in connection with this Agreement, costs of premiums on surety company
bonds, appraisal fees and out-of-pocket expenses of Lender in administering this
Agreement, regardless of whether incurred before or after the Closing Date.

     "Material Adverse Event" shall mean any circumstance, occurrence or event
which, in the reasonable discretion of Lender, may materially and adversely
affect the present or prospective financial condition or operations of Borrower
or Guarantor or materially impair the ability of Borrower or Guarantor to
perform its obligations under the Loan Documents.

     "Maturity Date" shall mean the maturity date stated in the Note evidencing
each Loan.

     "Maximum Project Loan Amount" shall mean the maximum principal amount of
each Loan for each Project determined by Lender in accordance with Section 2.2
regardless of the amount actually disbursed.

     "NOI" shall mean the proforma, gross income from the Project based upon
actual lease rates contained in the Approved Lease, annualized, less all
Operating Expenses, as reasonably determined by Lender.

     "Note" or "Notes" shall mean the promissory note(s) for each Loan executed
in connection with each Project payable to the order of Lender in the Maximum
Project Loan Amount as may be amended, modified, extended, renewed, restated or
supplemented from time to time.

     "Obligations" shall mean all of the direct and indirect, matured or
unmatured financial and other obligations, covenants and agreements to be
performed by Borrower to or for the benefit of Lender under any of the Loan
Documents, including, without limitation, Borrower's obligation to repay to
Lender all principal and interest due under each Loan.

                                        4
<PAGE>

     "Operating Expenses" shall mean all actual ordinary and normal expenses
computed on a rolling four quarter basis of the operation of the Real Property
and shall include amounts reasonably estimated by Borrower to be reserved for
the payment of taxes, insurance, security deposits and similar current
liabilities, including any management fees.

     "Project(s)" shall mean the performance of, as distinct separate projects,
(i) the acquisition of a parcel of Real Property in connection with an Approved
Lease, and (ii) the development and construction of the Improvements in
connection with leasing of such Real Property to be completed by the landlord
under an Approved Lease entered into subsequent to the Closing Date, all to be
accomplished in accordance with the Project Budget, the Project Schedule, and
the Project Plans and Specifications.

     "Project Budget" shall mean a budget prepared for each Project, approved by
Lender as provided herein, for the costs of acquiring the Real Property and the
development and construction of the Improvements for those specific line items
and in amounts not to exceed the amounts shown in the Project Budget or for the
costs of the construction of the Improvements under an Approved Lease for each
Project.

     "Project Costs" shall mean the total costs of each Project as reflected in
the Project Budgets, including land, hard costs, soft costs, loan fees and
leasing commissions.

     "Project Plans and Specifications" shall mean all plans, specifications,
engineering studies and other construction documents approved by Lender for each
Project for the construction of the Improvements as may be amended from time to
time with Lender's consent.

     "Project Schedule" shall mean the construction schedule prepared by
Borrower for each Project, which shall be subject to approval by Lender,
together with any amendments thereto approved by Lender.

     "Real Property" shall mean the real estate acquired for the Project and all
Improvements.

     "Security Documents" shall have the meaning ascribed in Section 3.1 hereof.

     "Subordinated Debt" shall mean any indebtedness of the Borrower owed to
Company or any Guarantor invested into the Project to pay the acquisition,
development and/or construction costs related to the Project that is expressly
subordinated and made junior to the payment and performance in full of the
Obligations, both in payment and in lien priority, pursuant to subordination
agreements in a form satisfactory to Lender.

     "Title Company" shall mean a title company selected by Lender to insure the
priority of the Deed of Trust for the Project.

Section 2. Loan Commitment; Project Approval.
---------------------------------------------

Lender and Borrower agree that Lender's obligation to make Loans to or for
benefit of Borrower is subject to the following terms and conditions.

2.1  Underwriting and Credit Approval.
--------------------------------------

Lender shall have no obligation to make any Loan or Advances until and unless
Lender has completed its credit analysis of the Project and has approved the
Loan under the Lender's then existing credit standards and policies. Lender
shall have reviewed and approved all aspects of the Project as more fully
provided herein, including without limitation each of the following: Approved
Appraisal, Project Budget, Project Schedule, Construction Contracts, Approved
Lease, Project Budget, General Contractor, Project Condition and all of the
conditions to initial disbursement as provided below. Lender offers no assurance
that any individual Project will be approved. Lender shall be under no
obligation to approve any particular Project. Lender shall be under no
obligation to make a Loan unless and until it has approved the Project, and then
the closing and funding of the Loan shall be subject to the conditions set forth
in Sections 2, 3 and 4 below.

                                        5
<PAGE>

2.2  Conditions for Project Approval.
-------------------------------------

In addition to all other conditions for Advances contained in this Agreement and
the Loan Documents, the following conditions precedent shall apply to Lender's
approval for each Project:

          a. Project Type. The proposed Project must be for a pre-leased,
     build-to-suit retail, commercial or industrial construction project,
     located within the lower 48 states of the continental United States, for
     either (i) small box retail for a nationally or regionally recognized
     franchise from a franchiser approved by Lender (which can include, but not
     limited to Family Dollar, Advanced Auto Parts, IHOP, Lone Star Steak House
     and Grease Monkey) or (ii) for a "tunnel" full service car washes. No
     residential, hotel or motel projects shall qualify.

          b. Approved Lease. No Loan shall be approved for any Project unless
     and until Borrower has obtained a lease for the Project and the lease and
     the prospective tenant have been approved by Lender as an Approved Lease
     under Section 2.3 below. There shall have occurred no event of default or
     breach under the Approved Lease and no Material Adverse Event shall have
     occurred affecting the Lessee under the Approved Lease.

          c. Borrower Due Diligence. Borrower shall have delivered to Lender a
     copy of the Project due diligence gathered by Borrower, including the
     following:

           1.   Lease for Project
           2.   Market overview
           3.   Description of the development site
           4.   Development plan
           5.   Financial model and projections
           6.   Capital requirements
           7.   Company history and background, including previous financing
                rounds
           8.   Management overview and biographies
           9.   Financial statement information including tax returns of the
                developer and franchisee/tenant.
           10.  Tenant references

          d. Budget. Borrower shall have submitted to Lender a proposed budget
     for the Project itemizing the gross costs, including the direct or indirect
     costs for the acquisition of the Real Property and the construction of the
     Improvements for the Approved Lease, certified by Borrower, which shall be
     in a form and content satisfactory to Lender and shall be subject to
     approval by Lender. Borrower shall have submitted the Project Schedule for
     the Project to Lender for its approval.

          e. Construction Contracts. Lender shall have received certified copies
     of the true, accurate and complete copies of the Construction Contracts,
     the form and content of which shall be subject to Lender's approval. The
     Construction Contract of the General Contractor shall be a firm and binding
     fixed price contract for the construction of the Improvements. Thereafter,
     such Contracts shall remain in full force and effect and no Material
     Adverse Event shall have occurred affecting any of such Construction
     Contracts.

                                        6
<PAGE>

          f. Approved Appraisal. Lender shall have received, obtained and
     approved an Approved Appraisal for the Project.

          g. Maximum Project Loan Amount. Each Loan shall be for an amount,
     determined by Lender, not to exceed the lesser of 75% of the appraised
     value of the Real Property under the Approved Appraisal for the Project or
     75% of the Project Costs.

          h. Debt Service Coverage Ratio. The Approved Lease must reflect a pro
     forma NOI, as determined by Lender, that is in compliance with the Debt
     Service Coverage Ratio. For a lease to be approved, the Debt Service
     Coverage Ratio using the DSCR(a) formula must equal or exceed 1.25 to 1 and
     the Debt Service Coverage Ratio using the DSCR(b) formula must equal or
     exceed 1.0 to 1.

     Lender shall have ten days after receipt of all of the information required
above in which to review and approve or reject the proposed Project. If Lender
fails to respond within such ten (10) days, the proposed project and the
proposed lease shall be deemed as having not been approved by Lender. Even if
approved, the Lender's obligation to disburse funds under a Loan for an approved
Project shall be subject to the terms and conditions stated in Section 3 below.

2.3  Approval of Leases.
------------------------

All new proposed leases and each proposed tenant for each Project must be
pre-approved by Lender in accordance with the following:

          a. The lease must be a bona fide lease executed in Borrower's ordinary
     course of business.

          b. Lender must have received a complete copy of the proposed lease
     (together with all exhibits, work orders and other related documents) to be
     executed by the Lessee and Borrower, clearly specifying the rental rate and
     all free rental periods, concessions and commissions related to the lease.

          c. Unless disclosed to and approved by Lender, the Lessee must be a
     person or entity who is not affiliated with or controlled by or under
     common control with Borrower, any member of Borrower or Guarantor.

          d. The term of the Lease must be for a minimum of 10 years from the
     date of completion.

          e. The rental rate of the Lease must reflect a proforma NOI that will,
     upon completion, comply with the Debt Service Coverage Ratio. For a lease
     to be approved, the Debt Service Coverage Ratio using the DSCR(a) formula
     must equal or exceed 1.25 to 1 and the Debt Service Coverage Ratio using
     the DSCR(b) formula must equal or exceed 1.0 to 1.

                                        7
<PAGE>

          f. The terms of the lease, including without limitation, the
     subordination language, shall be acceptable to Lender.

          g. The present and future financial condition and business prospects
     of the proposed tenant shall be acceptable to Lender and Lender shall have
     received financial statements and a credit bureau report on the proposed
     tenant.

          h. Any additional information reasonably requested by Lender
     concerning the proposed tenant or the terms of the lease.

2.4  Note; Payment Terms.
-------------------------

Each Loan shall be evidenced by a Note to be executed at closing of each loan
and shall be payable upon the terms provided therein, which may include, but not
be limited to, the following:

          a. As more fully provided in the Notes, interest shall accrue at the
     Interest Rate.

          b. All accrued and unpaid interest shall be due and payable monthly
     commencing on the 30th day after the date of the Note.

          c. If not sooner paid, the entire unpaid principal balance, all
     accrued and unpaid interest, and all other amounts payable under each Note
     shall be due and payable in full on the date that is the twelfth month
     anniversary of the date of the Note; provided, however that each Note shall
     have a single six-month extension option subject to the following
     conditions that must be satisfied as determined by the Lender: i. the
     completion of the Project is scheduled to be completed in compliance with
     the Project Budget and the Project Schedule, ii. the Lessee is in
     compliance with the Approved Lease, no event of default or breach has
     occurred under the Approved Lease, no material adverse event shall have
     occurred affecting the Lease and the Lessee shall not have the option to
     terminate the Approved Lease, iii. there shall have occurred no Event of
     Default nor shall there have occurred any event that with the passage of
     time or giving of notice, or both, would constitute an Event of Default,
     and iv. Borrower shall have paid the extension fee as defined in section
     2.6 below.

2.5  Expiration of Facility.
----------------------------

This facility shall expire twelve (12) months from the date hereof at which time
Lender shall have no obligation to review or approve any additional Projects,
but the Loan Documents shall remain in full force and effect until paid in full.

2.6  Loan Fees and Expenses.
----------------------------

          a. On the date of Closing, Borrower shall pay to Lender a
     non-refundable loan fee for each Loan in the amount of 1/2 of one percent
     of the Maximum Project Loan Amount.

          b. On the date of Closing, Borrower shall pay to Lender all Loan
     Expenses.

          c. For any extension approved by Lender, subject to the conditions
     stated herein, for any Note, an extension fee of 1/4 of one percent of the
     Maximum Project Loan Amount.

                                        8
<PAGE>

Section 3. Conditions Precedent to Closing of Each Loan.
--------------------------------------------------------

Lender shall have no obligation to make the initial Advance under a Loan for a
Project approved by Lender on the Closing Date, unless Lender has approved the
Project, the Approved Lease, the Project Budget and Project Schedule as provided
in Section 2 above and, in addition, each of the following conditions precedent
have been strictly satisfied or have been waived by Lender:

3.1 Loan Documents.
-------------------

Borrower and Guarantor, where appropriate, shall have executed and delivered any
and all documents and instruments requested by Lender in a form and substance
satisfactory to Lender, in Lender's sole discretion, to evidence and secure the
Loan, including, without limitation, the following:

          a. A promissory note for the Loan;

          b. A construction loan agreement for the Project;

          c. The following security instruments ("Security Documents"):

                    (1) A first priority lien Deed of Trust encumbering the Real
               Property and the Improvements;

                    (2) The Financing Statements;

                    (3) A Security Agreement encumbering all personal property
               related to the Project;

                    (4) A Pledge Agreement for the Collateral Account;

                    (5) A valid and effectual Present Assignment of Rents and
               Leases;

                    (6) A valid and effectual Assignment of all Project Plans
               and Specifications and Construction Contracts;

                    (7) Any other documents which Lender may reasonably request
               of Borrower as necessary, supplementary or convenient to perfect
               Lender's security interest in the Collateral.

3.2 Loan Fee/Expenses.
----------------------

At the closing, Borrower shall pay to Lender the Loan fees and all of Lender's
out-of-pocket Loan Expenses incurred in connection with the closing of the Loan
and the closing of the initial Advance.

3.3 Appraisal.
--------------

Lender shall have received an Approved Appraisal of the Real Property certified
to Lender and issued by an MAI designated appraiser chosen by Lender containing
a final dollar estimate of the market value of the Real Property, as completed,
as leased, with appropriate discounting, and conforming with Lender's
underwriting standards and rules and regulations of the Office of the
Comptroller of the Currency. The appraisal shall be reviewed by and found to be
satisfactory to Lender in its sole discretion. The maximum amount of the
principal balance of the Loan shall not exceed a loan-to-value ratio stated in
Section 2.2 above and thereafter the maximum amount of the principal balance of
the Loan shall not exceed the loan-to-value ratio stated in Section 2.2 above.

3.4 Plat.
---------

Lender shall have received a copy of all plats, planned unit development maps,
planned building group maps, and preliminary or final site development plans for
the Real Property.

                                        9
<PAGE>

3.5 Survey/Flood Hazard.
------------------------

Lender shall have received a land survey plat certified to Lender and the Title
Company prepared and certified by a professional land surveyor licensed in the
state where the Project is located, which shall be prepared in accordance with
the ALTA/ASCM standards for urban surveys including items 1-13 on Table A.
Lender shall have received a certification, from a company of its choice,
certifying that no portion of the Real Property is located within a Federal
Emergency Management Agency identified flood plain area and state the map number
or within any other flood hazard area.
3.6 Title.
----------

Borrower shall hold fee simple title to the Real Property, subject only to the
exceptions to title approved by Lender.

3.7 Title Insurance.
--------------------

Lender shall have received a title insurance commitment from the Title Company
in form and substance satisfactory to Lender, together with legible copies of
all documents affecting title, in which the Title Company has committed to
insure the lien of the Deed of Trust for the benefit of Lender as a first
priority lien encumbering the Real Property and Improvements under an ALTA loan
policy 1992 form, subject to no exceptions other than to those which Lender has
specifically consented to in writing ("Permitted Exceptions") and such other
endorsements as Lender may request. The title commitment shall call for the
deletion of all standard preprinted exceptions (including survey exceptions). At
Lender's option, the policy to be issued will provide mechanics lien coverage.
The title commitment may contain a pending disbursement clause acceptable to
Lender. The title commitment shall require the policy to contain such
endorsements as Lender may request. The commitment will be accompanied by such
re-insurance and co-insurance agreements and endorsements as Lender may require.

3.8 Plans / Specs / Engineering Reports.
----------------------------------------

Borrower shall have delivered to Lender the Project Plans and Specifications
approved by the required Governmental Authorities, which shall be in a form and
content satisfactory to Lender and shall be subject to approval by Lender.
Lender shall have received all engineering reports and other reports, data and
information required by Lender to indicate that the Real Property is suitable
for its intended use, without extraordinary land preparation or expense. Any
recommendation in such reports must have been complied with or incorporated into
the Project Plans and Specifications.

3.9 Environmental Compliance.
-----------------------------

Lender shall have received a current Phase I environmental audit of the Real
Property in a form and substance acceptable to Lender, issued by an
environmental engineering firm acceptable to Lender, prepared in accordance with
the ASTM standards for environmental site assessments. The environmental
assessment shall indicate that the Real Property and Improvements do not
contain, incorporate nor is threatened by contamination from any hazardous
materials and/or hazardous substances, including, but not limited to, asbestos,
PCBs, underground storage tanks, ground water or soil contamination, and that
the Real Property does not contain any wetlands or endangered species habitat.
In the event that the environmental audit indicates that further sampling and
analysis is warranted, Lender may require further testing and evaluation at
Borrower's expense. If the environmental reports or audits disclose risk of
environmental liability or if the auditors make recommendations regarding the
abatement or removal of hazardous materials or substances, Lender may refuse to
make Advances or disbursements until such risk has been removed or Borrower has
performed all measures recommended by the auditor. At closing, Borrower shall
have executed and delivered to Lender an environmental indemnity agreement
(which may be contained in the construction loan agreement) indemnifying Lender
against all environmental risks and liabilities, in a form acceptable to Lender.

                                       10
<PAGE>

3.10 Zoning.
------------

Lender shall have received evidence that the Real Property is properly zoned for
the Improvements and their intended use and that such zoning is final and not
subject to challenge.

3.11 Mechanic's Lien Waivers.
-----------------------------

Lender shall have received the lien waivers for any work performed or materials
supplied by Contractors prior to the Closing Date.

3.12 Insurance.
---------------

Lender shall have received evidence of insurance as required in any of the Loan
Documents. All evidence of insurance shall be on an ACCORD 27 form.

3.13 Utilities.
---------------

Lender shall have received evidence that all utilities and services to the Real
Property, including, without limitation, water, sewer, gas and electric, and
telephone are available in amounts sufficient to service the on-site
Improvements for their intended use.

3.14 Permits.
-------------

Lender shall have received a copy of grading, building and any other permit
required from any Governmental Authority necessary for the construction of the
Improvements and the same shall be in full force and effect.

3.15 Organizational Documents.
------------------------------

Lender shall have received a copy of all organizational documents (including
operating agreements if the entity is a limited liability company) of Borrower,
and its operating subsidiary that owns the Project and their managing
members/managers, and their managing partners evidencing that each of them is
validly existing and in good standing under all states in which they are either
formed or in which they are conducting business. Lender shall have received
certificates of good standing from the secretaries of state or similar
governmental authority indicating they are in good standing.

3.16 Borrowing Resolution.
--------------------------

Borrower shall have delivered to Lender a copy of a written consent of its
owners/members consenting to (i) Borrower's execution, delivery and performance
of the Loan, (ii) the execution and delivery and performance of all of
Borrower's obligations under the Loan Documents, and (iii) authorizing the
officers of Borrower to request all Advances under the Loan and permitting
Lender to rely on the signature of any person purporting to be a manager of
Borrower for an Advance under the Loan.

3.17 Legal Opinion.
-------------------

Borrower shall cause its independent legal counsel, acceptable to Lender, to
issue and deliver to Lender its legal opinion that Borrower is a duly formed,
validly existing corporation in good standing under the laws of the state of
Colorado; and that the Loan Documents and the Guaranty have been duly executed
and delivered by Borrower and Guarantor and are enforceable in accordance with
their terms.

3.18 Representations.
---------------------

All representations and warranties by Borrower shall remain true, correct and
complete.

3.19 No Event of Default.
-------------------------

No Event of Default shall exist, and no event shall have occurred or condition
exist that, after notice of lapse of time, or both, would constitute an Event of
Default.

3.20 Owner's Equity.
--------------------

     Lender shall have received evidence sufficient to indicate that Borrower
has invested the minimum Borrower's Equity in the form of cash or Subordinated
Debt.  If Lender has not received sufficient evidence indicating the minimum
Borrower's Equity, Lender may require Borrower to make a Borrower's Deposit to
be held by Lender in the Collateral Account and disbursed in accordance with the
disbursement procedures contained herein.

                                       11
<PAGE>

3.21 Leases.
------------

Lender shall have received a copy of the executed Approved Lease affecting the
Real Property. Lender shall have received a subordination, non-disturbance and
attornment agreement, in the form attached hereto as Exhibit B or in such other
form acceptable to Lender, executed by the Lessee. No materially adverse event,
such as bankruptcy, shall have occurred concerning the Lessee

3.22 GDBA Agreement to Fund.
----------------------------

GDBA shall have delivered to Lender a waiver in a form acceptable to Lender
waiving any rights under the Agreement to Fund, dated November 11, 2004, between
Borrower and GDBA with respect to the Project. If GDBA has recorded any lien or
security interest against the Project, GDBA shall have executed debt and lien
subordination agreements, in a form and content acceptable to Lender, in which
GBDA shall have agreed that it will not accept payment and will not take any
collection actions until the Lender's Loan is paid in full.

3.23 Subordinated Debt.
-----------------------

If any portion of the Borrower's Equity is funded or is to be funded in the form
of Subordinated Debt, then Company and/or GDBA, as appropriate, shall have
executed debt and lien subordination agreements, in a form and content
acceptable to Lender, in which the Company and/or GBDA shall have agreed that it
will not accept payment and will not take any collection actions until the
Lender's Loan is paid in full.

3.24 Payment and Performance Bonds.
-----------------------------------

Lender shall have received certified copies of all Construction Contracts and a
payment and performance bond from the General Contractor for the full amount of
the Construction Contract, with a dual oblige endorsement issued to Lender, all
in a form and content acceptable to Lender.

Section 4. General Provisions for all Advances.
-----------------------------------------------

4.1 Advances.
-------------

Subject to the strict satisfaction of the conditions contained in this
Agreement, Borrower may request and the Lender shall make Advances on each Loan
in the manner set forth in each Project Loan, only for the amounts and for the
cost items set forth in the Project Budget.

4.2 Satisfaction of Conditions.
-------------------------------

Although Lender shall have no obligation to make any Advance unless and until
all of the conditions and prior performances set forth herein have been kept,
fulfilled or performed, and until all inspections, certifications, releases,
waivers, or paid bills or other requirements set forth herein have been made,
delivered and complied with, Lender, at its sole discretion, may make Advances
prior to that time without waiving or releasing any of the requirements or
conditions of this Agreement; but Borrower shall continue to be strictly
obligated and subject thereto, and all such conditions, prior performances and
other requirements shall nevertheless be strictly and punctually complied with
and fulfilled and performed; and, notwithstanding any such disbursement, Lender,
at its sole discretion, may discontinue any further Advances at any time until
all of the conditions, prior performances and other requirements of this
Agreement have been strictly fulfilled, performed and complied with.

4.3 Excess Advances.
--------------------

Borrower shall immediately repay any Advance received by Borrower in excess of
the amount Borrower is entitled to under the provisions of this Agreement.

4.4 Other Discretionary Disbursements/Advances.
-----------------------------------------------

At its discretion, Lender may pay, but shall not be obligated to pay, from the
Collateral Account or the undistributed proceeds of any Loan, even without a
disbursement request, any of the following: (a) Loan Fees; (b) Loan Expenses;
(c) after an Event of Default, any amounts necessary to remove defects of title
to the Real Property, or to pay liens and other encumbrances on the Real
Property, which are prior to Lender's interest in the Real Property or which
claim a priority over Lender's interest in the Real Property; (d) amounts due
and payable to third persons in accordance with the terms and provisions of this
Agreement, the Note, or the Loan Documents; (e) amounts to preserve or protect
any Collateral securing the Loan in accordance with the terms of this Agreement;
and (f) after an Event of Default, amounts necessary to complete the
Improvements in accordance with the Construction Contracts and the Project Plans
and Specifications. Any such payments shall for all purposes be deemed to be an
Advance on the Loan. If the amount so disbursed results in total Advances

                                       12
<PAGE>

exceeding the maximum principal amount of the Loan, or if such Advances when
added to disbursements requested by the draw documents, exceed such amount, it
shall nevertheless be deemed to be subject to the terms and conditions of this
Agreement, to accrue interest in the same manner as all other disbursements
hereunder, to be repaid by Borrower in the manner set forth herein, and shall be
secured by the Collateral. Lender shall be under no obligation to advance to
Borrower an amount in excess of the maximum principal amount of the Loan, even
if, after making the optional Advances allowed under this Section the remaining
Loan funds are inadequate to complete construction of the Project.

4.5 Project Cost Overruns.
--------------------------

If, at any time, the remaining costs of completing any Project exceeds the
remaining undisbursed portion of the Loan allocated for that Project, as
determined by Lender, whether such increase is a consequence of modifications or
amendments to the Construction Contracts or cost overruns, then, Lender shall
not be obligated to approve any Advances or further disbursements from the
Collateral Account until such time as Borrower has either provided evidence that
it has advanced from its own funds all expenses of such cost overruns or has
paid additional sums into the Collateral Account as hereinafter provided. Lender
shall have the right to demand that Borrower pay into the Collateral Account
additional sums as calculated by Lender in its reasonable discretion sufficient
to complete the Project in accordance with the Construction Contracts such that
the amounts so deposited into the Collateral Account and the remaining
undisbursed balance of the Loan allocated to the Project is in an amount that
equals or exceeds the revised Project Budget. Lender shall have no obligation to
make disbursements from the Collateral Account or make any Advances under the
Loan until such funds have been deposited with Lender, as Lender may request
from time to time in accordance with the provisions of this Agreement. Such
funds shall constitute a portion of Borrower's Deposits. The Collateral Account
shall be an account maintained with Lender into which all of Borrower's Deposits
shall be deposited and into which Advances on the Loan may be deposited and
against which checks may be drawn for the purpose of disbursing the proceeds for
the purposes described herein and for the other purposes described in this
Agreement. Borrower shall not have the right to withdraw the funds for any
purpose. No interest shall accrue on the funds deposited into the Collateral
Account. All funds in the Collateral Account are pledged as additional
Collateral for the Loan.

Section 5. Responsibility for Completion/Indemnity.
---------------------------------------------------

Lender assumes no responsibility for completion of all or any portion of any
Project. Lender shall have no obligation to any person to complete any portion
of any Project, to apply undisbursed portions of the Loan to claims outstanding
for the construction of any Project, or to exercise any of its rights hereunder.
Nothing herein shall be construed as establishing a relationship between the
Lender and any other party except the debtor/creditor relationship between
Borrower and Lender. Lender shall owe no duty to any person to review any of the
Construction Contracts, to insure compliance with Construction Contracts, to
inspect the construction of the Improvements, or to warn Borrower or any other
party of any defect or mistake in the Improvements. By accepting, reviewing or
approving anything to be observed, performed or fulfilled by Borrower, Lender
shall not be deemed to have warranted or represented the sufficiency, legality,
effectiveness, completeness, correctness or legal effect of the same or of any
term, provision or condition thereof. All inspections are conducted for the sole
benefit of Lender. Neither the Borrower, Guarantor, Contractors, or any contract
purchaser or other person may rely, or have any right to rely, upon Lender's
determination of the appropriateness of any Advance, approval of any inspection,
or Lender's approval of any other matter contained herein. Borrower shall, on
demand, indemnify, defend and hold harmless Lender, its agents, participants,
affiliates, officers, directors and employees of and from any and all
liabilities, claims, demands, actions, causes of action, costs and expenses,
including, without limitation, reasonable attorney fees and costs and expenses
reasonably incurred in preparing or defending against any litigation or claim,
action, suit, proceeding or demand of any kind or character, asserted against
Lender or incurred by Lender at any time by reason of, arising out of, or
related to, directly or indirectly, the construction of the Project, the
condition of the Real Property, or any injury, death or accident occurring on or
about the Real Property.

                                       13
<PAGE>

Section 6. Conditions Precedent to Subsequent Disbursements.
------------------------------------------------------------

Lender shall have no obligation to make any disbursements for any Improvements
until, as to each such disbursement, all of the following conditions precedent
are strictly satisfied, substantial completion being insufficient:

6.1 Prior Conditions.
---------------------

All conditions precedent listed in Sections 2, 3, and 4 have been satisfied and
continue to be satisfied on an on-going basis, and any written request by Lender
for any updated, additional or revised documentation or information required
thereunder has been satisfied within a reasonable time, but not more than ten
(10) days following such request.

6.2 Title Update.
-----------------

If required by Lender, Lender shall have received the title insurance policies
excepting from coverage only the permitted exceptions and adding affirmative
protection for those matters requested by Lender and shall have received before
each and every disbursement (other than a disbursement solely for interest)
subsequent to the initial disbursement endorsements (Form 107.3) as requested by
Lender to the title policy indicating that since the preceding Advance, there
has been no change in the status of title and no other exceptions not
theretofore approved by Lender. No Material Adverse Event shall have occurred
affecting title to the Real Property.

6.3 Construction.
-----------------

The Improvements are being and have been constructed to date substantially in
accordance with the Construction Documents, the Project Budget, and the Project
Schedule.

6.4 SNDA.
---------

Lender shall have received a subordination, non-disturbance and attornment
agreement, on a form approved by Lender, from each tenant in the Project within
sixty (60) days following closing, unless Lender has exempted the tenant whose
lease provides for automatic subordination.

6.5 Casualty.
-------------

The Improvements shall not have been materially damaged by any casualty, unless
Lender shall have received insurance proceeds in an amount deemed by Lender to
be sufficient for complete repair of the damage and that when added to the
undisbursed balance of the Loan are sufficient for completion of the Project in
accordance with the Construction Documents.

6.6 Updated Appraisal.
----------------------

The disbursement requested shall not cause the outstanding principal balance of
the Loan to exceed the maximum loan-to-value ratio or loan to cost ratio stated
in Section 2.2 above. If requested by Lender, Lender shall have received an
updated appraisal. If an Event of Default exists, if Lender has reasonable cause
to believe that the value of the Real Property has been impaired for any reason
whatsoever, if an appraisal is required in order to comply with regulatory
requirements, if the appraisal is ordered in connection with an extension of the
Maturity Date or a casualty loss to the Improvements, then the cost of such
appraisal shall be at Borrower's expense; provided that Borrower shall not be
responsible for the cost of more than one appraisal annually. Otherwise, such
appraisal shall be conducted at the Lender's expense.

6.7 Financials.
---------------

No Material Adverse Event shall have occurred affecting Borrower or Guarantor.
Lender may require that Borrower provide it with satisfactory evidence that
there is not pending against Borrower or any Guarantor a petition in bankruptcy,
whether voluntary or otherwise, any assignment for the benefit of creditors or
petition seeking reorganization or arrangement pursuant to federal bankruptcy
laws or of any similar state law, or any other action brought pursuant to the
aforesaid bankruptcy laws. Upon request of Lender, Borrower shall supply Lender
with a written certification stating that no condition exists, which materially
adversely affects the financial condition of Borrower, or the Real Property.
Lender may also conduct a credit investigation which Lender deems advisable or
order any and all credit reports upon Borrower and Guarantor, and such
investigation or reports shall not reveal any Material Adverse Event.

                                       14
<PAGE>

6.8 Construction.
-----------------

Borrower shall not have done or permitted anything to be done that would
materially and negatively affect the completion of the Project or the
performance of any of the Construction Contracts.

6.9 Compliance.
---------------

Borrower shall have theretofore complied with all of its covenants and
agreements contained in this Agreement, the Note and the other Loan Documents,
and all representations and warranties of Borrower contained herein or in any
other Loan Document shall be true as of the date of disbursement as if first
made on that date; and there shall not exist an Event of Default nor shall there
exist the occurrence of an event which with the passage of time or notice, or
both, would result in an Event of Default.

6.10 Contractors.
-----------------

For each proposed Project, Borrower shall have provided a list certified by
Borrower and General Contractor of all subcontractors with whom Borrower or
Contractors have contracted, a list certified by each subcontractor shown on
such list containing all subcontractor's suppliers, and subcontractors, and
evidence that all persons shown on such lists have received payment for all work
performed for the period covered by the previous Disbursement Request, and that
all such persons have executed appropriate lien waivers for such work and
materials furnished. Such evidence may include, but is not necessarily limited
to, copies of canceled checks, original invoices, and original lien waivers.

6.11 Mechanic's Liens.
----------------------

Lender shall have received the lien waivers described in Sections 4 and 5.
Lender shall not have received a notice of intent to file a mechanic's lien and
no statement of lien or other mechanic's lien shall have been recorded affecting
all or any of the Real Property.

6.12 Owners Equity.
-------------------

Lender shall have received evidence sufficient to indicate that Borrower has
invested into the Project the minimum Borrower's Equity in the form of cash or
Subordinated Debt. If Lender has not received sufficient evidence, Lender
may require Borrower to invest such amounts and provide evidence of the same as
a condition to any Advance or may require Borrower to make a Borrower's Deposit
to be held by Lender in the Collateral Account and disbursed prior to any
Advances on the Loan.

Section 7. Representations and Warranties.
------------------------------------------

Borrower represents and warrants to Lender that as of the date of this Agreement
and as of the date of each disbursement of the Loan proceeds:

7.1 Recitals.
-------------

The recitals and statements of intent appearing in this Agreement are true,
correct and complete.

7.2 Organization.
-----------------

Across America Real Estate Development Corp. is a corporation validly formed,
existing and in good standing under the laws of the state of Colorado.

7.3 Power and Authorization.
----------------------------

Borrower has the full power to carry out its business now being conducted. The
execution, delivery and performance of all Loan Documents by Borrower, to the
extent to be executed, delivered or performed by Borrower: (a) have been duly
authorized by all necessary corporate action; (b) do not require the consent or
approval of any other person, regulatory authority or governmental body; and (c)
do not conflict with, result in violation of, or constitute a default under any
provision of any agreement or other instrument binding upon Borrower, or any
law, governmental regulation, court decree or order applicable to Borrower.

7.4 Enforceability.
-------------------

This Agreement constitutes, and any instrument or agreement required hereunder
to be given by Borrower when delivered will constitute, legal, valid and binding
obligations of Borrower, enforceable against Borrower in accordance with their
respective terms, subject to bankruptcy and insolvency laws affecting the rights
of creditors generally.

                                       15
<PAGE>

7.5 Litigation and Claims.
--------------------------

There exists no litigation or claim (including those for past-due taxes) against
Borrower or the Collateral which is pending, or for which Borrower has received
written notice, and no other event has occurred which may materially adversely
affect Borrower's financial condition or properties.

7.6 Financial Information.
--------------------------

The financial statements of Borrower supplied to Lender disclosed their true and
complete financial condition as of the date of the statements, and there has
been no Material Adverse Event subsequent to the date of the most recent
financial statements supplied to Lender. Borrower does not have any material
contingent obligations except as disclosed in such financial statements.

7.7 Taxes.
----------

All tax returns and reports of Borrower that are or were required to be filed
have been filed, and all taxes, assessments and other governmental charges have
been paid in full.

7.8 Location of Borrower's Offices and Records.
-----------------------------------------------

The principal place of business of Borrower is located at 1440 Blake Street,
Denver, Colorado.

7.9 Information.
----------------

All information heretofore or contemporaneously herewith furnished by Borrower
to Lender for the purposes of or in connection with this Agreement or any
transaction contemplated hereby is, and all information hereafter furnished by
or on behalf of Borrower to Lender will be, true, and accurate in every material
respect on the dates which such information is dated or certified; and none of
such information is or will be incomplete by omitting to state any amendment,
modification or any material fact necessary to make such document information
not misleading.

7.10 Survival of Representations and Warranties.
------------------------------------------------

Each request by Borrower for an Advance shall constitute an affirmation on the
part of Borrower that the above representations and warranties are true, correct
and complete as of the time of such request. Borrower understands and agrees
that Lender is relying upon the above representations and warranties in making
the Loan to Borrower. Borrower further agrees that the foregoing representations
and warranties shall be continuing in nature and shall remain in full force and
effect until such time as the Loan shall be paid in full.

Section 8. Affirmative Covenants.
---------------------------------

Borrower covenants and agrees with Lender that, while this Agreement is in
effect, Borrower and Guarantor will perform the following:

8.1 Payment of Loan.
--------------------

Borrower shall promptly pay and perform when due all obligations of Borrower
contained herein or in another Loan Document.

8.2 Payment of Laborers and Materialmen.
----------------------------------------

Promptly and fully pay all laborers and materialmen for the Improvements in such
amounts and at such times as necessary to prevent mechanics liens upon the Real
Property. Borrower shall, upon demand, defend and indemnify Lender of and from
all claims, suits or proceedings brought by any person allegedly unpaid for
labor or materials supplied to the Project. This indemnity shall survive
repayment and satisfaction of this Loan.

8.3 Completion of Improvements.
-------------------------------

Borrower shall proceed with construction without interruption and promptly
complete the Improvements not later than the Maturity Date in a good and
workmanlike manner according to the Project Plans and Specifications, free from
all liens and encumbrances, and in accordance with the Construction Documents,
and all applicable ordinances and statutes, zoning laws, and all regulations and
building codes of any governmental or municipal agency having jurisdiction over
the Improvements.

                                       16
<PAGE>

8.4 Enforcement of Contracts.
-----------------------------

Borrower shall strictly enforce the Construction Documents to ensure that the
Contractors are required to promptly and diligently perform all of their
obligations thereunder and in such a manner as to preserve Lender's security in
the Real Property and Improvements.

8.5 Additional Contractor Lists.
--------------------------------

Borrower, promptly upon request of Lender from time to time, shall furnish to
Lender correct lists of the Contractors, all subcontractors, suppliers and
materialmen employed or retained in connection with the construction of the
Improvements, together with, if required by Lender, copies of each such
contract. Each such list shall show the name, address and telephone number of
each such person, a general statement of the nature of the work to be done, the
labor and materials to be supplied, the names of materialmen if known, and the
approximate dollar value of such labor or work with respect to each. Lender
shall have the right to telephone or otherwise communicate with the Contractors,
each subcontractor and materialman to verify the facts disclosed by said list or
by any Disbursement Request, or for any other purpose.

8.6 No Other Security Interests.
--------------------------------

No materials, equipment, fixtures or any other part of the Improvements or
articles of personal property placed in the Improvements shall be purchased or
installed under any security agreement or other arrangements wherein the seller
reserves or purports to reserve the right to remove or to repossess any such
items or to consider them personal property after their incorporation into the
Improvements.

8.7 Maintenance of Licenses and Permits.
----------------------------------------

Borrower shall maintain in full force and effect all rights and licenses
necessary to carry on its business, and all permits, licenses, consents and
approvals necessary for the construction, maintenance and operation of the
Improvements. Borrower shall maintain its present existence and shall maintain
executive personnel and management at a level of experience and ability
equivalent to present personnel and management.

8.8 Litigation.
---------------

Promptly inform Lender in writing of: (a) any Material Adverse Event affecting
Borrower's financial condition; (b) all litigation and claims and all threatened
litigation and claims affecting Borrower which could materially affect the
financial condition of Borrower; and (c) all litigation concerning all or any
portion of the Collateral. In the event that such litigation concerns or affects
any of the Collateral, Lender may engage counsel to make an appearance and
defend Lender's interest in the Collateral, all at Borrower's expense. In
addition, in the event that such litigation asserts a lien or a claim to title
of all or any portion of the Collateral, Borrower shall, at Lender's election,
also either post a bond or deliver other cash security with Lender (or with the
court in the case of a mechanic's lien) in an amount of one-and-one-half times
the amount of such claims within thirty (30) days of the date of the initiation
of such litigation (provided that if the lien is recorded, such as a mechanic's
lien, then the bond or security shall be posted within thirty (30) days of
recording). Such bond or cash security shall be held by Lender (or with the
court in the case of a mechanic's lien) until the conclusion of such litigation
and may be used at Borrower's election to settle such litigation. If not settled
or concluded in favor of Borrower, the bond or cash security may be used by
Lender to either pay off such claimants or may be applied against the Loan. If
cash security is pledged, Borrower may use the cash to settle any such dispute
(provided that the funds will only be released upon a final and complete
settlement of the claims).

8.9 Financial Records.
----------------------

Borrower shall maintain its books and records in accordance with the accounting
principles historically used by Borrower, applied on a consistent basis, and
Borrower will permit Lender to examine and audit Borrower's books and records at
all reasonable times. All books and records shall separately account for the
income and expenses attributable to the Real Property. Borrower shall deliver to
Lender the following financial information, all of which shall be in a form and
content reasonably acceptable to Lender, on or before the date specified below:

                                       17
<PAGE>

          a. Whenever requested and in any event within ninety (90) days after
     the end of each fiscal year, Borrower shall furnish to Lender its (i)
     unqualified audited annual financial statements prepared by a certified
     public accountant acceptable to Lender, (ii) a balance sheet, (iii)
     statement of income and expenses, and (iv) statement of cash flows that
     include the results of the financial operations of Borrower. To the extent
     that they comply with the requirements of this section, Borrower may
     furnish to Lender the reports filed with the Securities and Exchange
     Commission.

          b. Semi-annually and as soon as practicable and in any event within
     forty-five (45) days after the end of each semi-annual period, Borrower
     will furnish a certified, internally-prepared balance sheet, income
     statement and operating statements.

          c. Within forty-five (45) days after each calendar quarter, Borrower
     shall furnish a covenant compliance certificate in the form of Exhibit A
     for the prior quarter certifying compliance with the financial/liquidity
     covenants, together with a copy of all brokerage and bank statements used
     to support the certification.

          d. Within forty-five (45) days of filing with the Internal Revenue
     Service, Borrower shall furnish a certified copy of its federal income tax
     returns, together with all K-1s, 1099s, sub chapter S corporation and
     partnership income tax returns, W-2s and other schedules and exhibits, and,
     if any extensions are filed, Borrower shall furnish Lender with a copy of
     any extensions within five (5) days of filing the same with the Internal
     Revenue Service.

          e. Borrower shall furnish such additional reasonable information and
     statements, lists of assets and liabilities, aging of receivables and
     payables, inventory schedules, budgets, forecasts, tax returns, and other
     reports with respect to Borrower's financial condition, the Real Property,
     and business operations as Lender may reasonably request from time to time.

8.10 Insurance.
---------------

In addition to any insurance required under any other Loan Document, Borrower
shall obtain, maintain or cause to be maintained and shall deliver to the Lender
policies of insurance, at its expense, providing the following:

          a. Policies of insurance evidencing bodily injury, death or property
     damage liability coverages in amounts not less than $1,000,000.00 (combined
     single limit), and an excess/umbrella liability coverage in an amount not
     less than $2,000,000.00 shall be in effect with respect to the Borrower.
     Such policies must be written on an occurrence basis so as to provide
     blanket contractual liability, broad form property damage coverage, and
     coverage for products and completed operations.

          b. "Special Cause of Loss" insurance on the Improvements in an amount
     not less than the full insurable value on a replacement cost basis of the
     insured Improvements and personal property related thereto. During the
     construction period, such policy shall be written in the so-called
     "Builder's Risk Completed Value Non-Reporting Form" with no coinsurance
     requirement and shall contain a provision granting the insured permission
     to occupy. Such policy shall not contain an exclusion for terrorist losses.

          c. If applicable, evidence of worker's compensation insurance coverage
     satisfactory to Lender.

                                       18
<PAGE>

          d. If the Real Property, or any part thereof, lies within a "special
     flood hazard area" as designated on maps prepared by the Department of
     Housing and Urban Development, a National Flood Insurance Association
     standard flood insurance policy, plus insurance from a private insurance
     carrier if necessary, for the duration of the Loan in the amount of the
     full insurable value of the Improvements.

          e. Such other insurance as the Lender may require, which may include,
     without limitation, errors and omissions insurance with respect to the
     contractors, architects and engineers, earthquake insurance, rent abatement
     and/or business loss.

     All insurance policies shall (i) be issued by an insurance company having a
rating of "A" VII or better by A.M. Best Co., in the Best's Rating Guide, (ii)
name the Lender as an additional insured on all liability insurance and as
mortgagee and lender loss payee on all casualty insurance, (iii) provide that
the Lender is to receive thirty (30) days written notice prior to non-renewal or
cancellation, (iv) be evidenced by a certificate of insurance to be held by the
Lender, and (v) be in form and amounts acceptable to the Lender. Borrower will
provide Lender with loss payee endorsements, non-contributing mortgagee's
endorsements, or other endorsements as Lender may require. If any insurance
policies are blanket policies, they shall contain an agreed amount endorsement,
in amounts reasonably approved by Lender.

8.11 Insurance Reports.
-----------------------

In addition to any reports required in the Deed of Trust, Borrower, upon request
of Lender, will deliver to Lender from time to time the policies or certificates
of insurance in form satisfactory to Lender, including stipulations that
coverages will not be cancelled or diminished without at least 30 days prior
written notice to Lender. In connection with all policies covering the Real
Property, Borrower shall furnish to Lender, upon request of Lender, reports on
each existing insurance policy showing such information as Lender may reasonably
request, including, without limitation the following: (a) the name of the
insurer; (b) the names of all insureds and loss payees; (c) the risks insured;
(d) the amount of the policy; (e) the properties insured; (f) the then-current
property values on the basis of which insurance has been obtained, and the
manner of determining those values; and (g) the expiration date of the policy.

8.12 Other Agreements.
----------------------

Borrower shall comply with all material easements, covenants, declarations,
other agreements affecting the Real Property including, without limitation,
whether now or hereafter existing, between Borrower and any other party and
notify Lender immediately in writing of any default in connection with any other
such agreement. As used in this Section "Material" shall mean having an economic
impact of $10,000.00 or more.

8.13 Taxes, Charges and Liens.
------------------------------

Borrower shall discharge when due any of its other obligations, including,
without limitation, all assessments, taxes, governmental charges, levies and
liens of every kind and nature imposed upon Borrower or its properties, income
or profits prior to the date on which penalties would attach, and all lawful
claims that, if unpaid, might become a lien or charge upon any of Borrower's
properties, income or profits, including, but not limited to, the Real Property;
provided, however, Borrower will not be required to pay and discharge any such
assessment, tax, charge, levy, lien or claim that affects the Collateral so long
as: (a) the amount or legality of the same shall be contested in good faith by
appropriate proceedings; (b) Borrower promptly notifies Lender of the contest
and keeps Lender informed as to the status of the contest; (c) the contest and
delay in payment of such tax would not, in Lender's opinion, jeopardize Lender's
security interest in or the value of the Collateral; (d) within thirty (30) days
of the date the same became due, Borrower shall either (i) have established,
with Lender's approval, on its books adequate reserves with respect to such
contested assessment, tax, charge, levy, lien or claim in accordance with
generally-accepted accounting practices, or (ii) if Lender has not approved the
reserve, have posted a bond in favor of Lender, issued by a surety acceptable to
Lender in an amount equal to one and one-half of the amount of such lien; and
(e) Borrower promptly pays all amounts ultimately determined to be payable.

                                       19
<PAGE>

8.14 Operations.
----------------

Borrower shall conduct its business affairs in a reasonable and prudent manner
and in compliance with all applicable federal, state and municipal laws,
ordinances, rules and regulations respecting its properties, charters,
businesses and operations, all minimum funding standards and other requirements
of the Employee Retirement Income Security Act of 1974, as amended, and other
laws applicable to Borrower's employee benefit plans, if any. Borrower's sole
business is the development, construction and rental of the Real Property.
Borrower shall not engage in any business other than the ownership, development,
construction and rental of the Real Property.

8.15 Inspection of Books.

Borrower shall permit employees or agents of Lender,
at its own expense, at any reasonable time to inspect any and all Collateral and
Borrower's other properties and to examine or audit Borrower's books, accounts
and records and to make copies and memoranda of Borrower's books, accounts and
records. If Borrower now or at any time hereafter maintains any records
(including, without limitation, computer-generated records and computer software
programs for the generation of such records) in the possession of a third party,
Borrower, upon reasonable request of Lender, shall notify such party to permit
Lender free access to such records at all reasonable times and to provide Lender
with copies of any records it may request, all at Borrower's expense.

8.16     Collateral Inspection.

                  a. Borrower shall permit Lender and its representatives,
         including Inspector, to enter upon the Real Property and observe the
         construction of the Improvements and all materials to be used in
         construction thereof; permit them to examine the Real Property
         Construction Documents; all detailed plans and shop drawings for the
         Improvements, and all of Borrower's books, records, contracts and bills
         with respect to the Improvements; and cause the subcontractors to
         cooperate with Lender in this regard. Observation by Lender of
         construction shall be for the purpose of protecting the security of the
         Loan only, and such observation shall in no way be construed as an
         acknowledgement that the Construction Documents have been complied with
         or that the construction is free from defect or in compliance with the
         terms of this Agreement.

                  b. In addition, Inspector, at Borrower's expense, shall make
         regular observations of the Real Property as construction progresses
         and at all critical times during construction to determine that the
         work is progressing in a timely manner and in compliance with the
         Project Schedule, to review each request for a loan disbursement to
         reasonably ascertain that all construction to the date of request has
         been completed to the extent indicated in Borrower's request and to
         furnish Lender with full and complete reports of the construction and
         provide Borrower with copies of such reports.

8.17 Bonds.
-----------

In the event that a mechanic's or other lien is filed encumbering the Real
Property, Borrower shall, in addition to the other requirements of the Loan
Documents, immediately notify Lender thereof and, upon request of Lender, obtain
for the benefit of Lender a corporate surety bond in an amount and with sureties
satisfactory to Lender or, at Borrower's election, a cash deposit to be
deposited with the Title Company or the court in such a manner as to cause the
lien to be satisfactorily released within thirty (30) days of the date filed.

8.18 Correction of Defects.
---------------------------

Borrower shall proceed diligently to correct material defects and the completion
of Improvements described in the Construction Contracts.

8.19 Lien Waivers.
------------------

Borrower shall obtain lien waivers from all Contractors through the use of check
endorsements and lien waiver forms acceptable to Lender.

                                       20
<PAGE>

8.20 Publicity.
---------------

Borrower shall permit Lender to install a sign or billboard at the Real Property
indicating that Lender has provided construction financing and to otherwise use
Borrower's name and the Project in the promotion of Lender's business in
accordance with all local ordinances and signage restrictions.

8.21 Financial Covenants.
-------------------------

Except as otherwise noted, all capitalized terms in this paragraph and not
otherwise defined in this Agreement shall have the meanings determined in
accordance with GAAP. In addition, except as otherwise noted, all financial
computations shall be made in accordance with GAAP. Until the Loan is re-paid in
full, Guarantor shall maintain:

          a. Guarantor's Liquidity. At all times, Guarantor shall maintain a
     minimum Liquidity of $15,000,000.00, to be measured quarterly using
     mark-to-market accounting.

8.22 Leases.
------------

Borrower shall exercise its good faith, best efforts to comply with and perform
all of its obligations under each Approved Lease. Borrower shall provide to
Lender, within five (5) days of Borrower's receipt, copies of any
correspondence, notices, demands or proposed amendments pertaining to all
Approved Leases. If Lender so requests, Borrower shall from time to time obtain
from any Lessee and deliver to Lender estoppel certificates, and, if required in
the tenant's leases, a subordination, non-disturbance and attornment agreement,
all in a form and substance approved by Lender.

8.23 Additional Assurances.
---------------------------

Borrower shall make, execute and deliver to Lender such promissory notes,
mortgages, deeds of trust, security agreements, financing statements,
instruments, documents and other agreements as Lender or its attorneys may
reasonably request to evidence and secure the Loan and to perfect all security
interests and liens in the Collateral.

Section 9. Negative Covenants.
------------------------------

Borrower covenants and agrees with Lender that Borrower shall not, without the
prior written consent of Lender, which consent may be withheld in Lender's sole
and absolute discretion, engage or permit any of the following to occur:

9.1 Continuity of Operations.
-----------------------------

Borrower shall not: (a) engage in any business activities substantially
different than those in which Borrower is presently engaged; (b) cease
operation, liquidate, merge or consolidate with any other entity; (c) change its
management or turn over management of its affairs to any other person; (d)
change its name or operate its business under any assumed name, or (e) change
the state of its formation.

9.2   Liens.
------------

Borrower shall not pledge, encumber or collaterally assign any of the
Collateral, except to Lender.

9.3 Change in Accounting Period.
--------------------------------

Change the times of commencement or termination of their fiscal year or other
accounting periods, or change its methods of accounting other than to conform to
generally-accepted accounting principles applied on a consistent basis.

9.4 Loans, Acquisitions and Guaranty.
-------------------------------------

Borrower shall not loan money or assets, purchase or acquire any interest in any
other enterprise or entity, or incur any obligation as surety or guarantor other
than in the ordinary course of business.

9.5 Special Districts.
----------------------

Borrower shall not seek to form or consent to the formation of any special
district in which the Real Property would be located, including, without
limitation, any special improvement district, business improvement district,
metropolitan district, weed district, recreational district or any other
governmental or quasi-governmental entities that have authority to make
assessments against the Real Property. In the event such district is proposed,
Borrower shall immediately give Lender notice of such event and Borrower agrees
to exercise its good faith, reasonable efforts to oppose the formation of such
district.

                                       21
<PAGE>

9.6 Approved Leases.
--------------------

Borrower shall not execute or enter into a new lease affecting the Real Property
or a renewal or extension of an existing Approved Lease without having obtained
Lender's Consent to the terms and rental rates of the proposed lease and
Lender's approval of the financial and business conditions and prospects of the
proposed Lessee. Borrower shall not terminate, cancel, amend, extend, waive,
assign or rescind all or any portion of any Approved Lease. Borrower shall not
subordinate any Approved Lease to any lien other than the lien of the Deed of
Trust. Borrower shall not exercise any remedy to sue any Lessee or to terminate
any Approved Lease and shall not enter into any lease buy-outs. Lease buy-outs
shall be subject to approval by Lender with an acceptable replacement tenant.
All proceeds from lease buy-outs in excess of funds estimated for tenant
improvements and leasing commission for such space shall be applied to the
principal balance of the Loan. Borrower will not make, consent to or permit any
new lease or agreement for the occupancy of all or any portion of the Real
Property, except for Approved Leases. Borrower shall not collect any rent or
other charge from any Lessee more than thirty (30) days in advance of the date
due. Borrower shall not offer or commit to any free rent, rent rebate, rent
abatement or any other cancellation of rent due under any Approved Lease.

9.7 Alteration of Project Documents.
------------------------------------

For each Project, Borrower shall not permit any material change in the Project
Plans and Specifications, Construction Contracts, or the Project Budgets without
Lender's prior written consent. Borrower shall not make or permit any material
reallocations among the line items contained in the Project Budgets without
Lender's prior written consent. As used in this Section, the term "Material"
shall mean having an economic impact of $25,000.00 or more or which increases
any line item in any Project Budget by five percent (5%) or more; provided that
if Borrower has permitted any number of change orders or modifications which
have increased the costs of all Projects by $100,000.00 in the aggregate, then
the term "Material" shall thereafter mean having an economic impact of
$10,000.00. Borrower shall not permit any change in the Project Plans and
Specifications. Any requested changes shall be submitted on a form acceptable to
Lender and accompanied by a copy of the portion of the Project Plans and
Specifications applicable to the changes. Prior to implementing any change order
which increases the costs of completing the Project, Borrower shall make a
Borrower's Deposit with Lender of sufficient cash to cover the cost of all
change orders that increase the cost of the Improvements. All such funds shall
be held by Lender and disbursed in the manner provided herein for the Collateral
Account and are hereby assigned to Lender as additional security for the Loan
and all other indebtedness of Borrower arising hereunder

9.8 Contractor's Insurance.
---------------------------

All Contractors shall maintain the types, amounts and coverages of insurance
reasonably requested by Lender.

9.9 New Fees.
-------------

Borrower shall not permit any new agreement or enter into any modification or
amendment of any contracts, participation agreements, facilities fee agreements,
tap purchase agreements, development agreements, or any other financial
arrangements between Borrower and any Governmental Authority or any district in
which the Real Property is located which would cause or create any new or
additional fees or charges assessable against the Real Property.

9.10 Change in Status of Real Property.
---------------------------------------

Borrower shall not consent to any modification, amendment, cancellation or
change in the zoning, utility agreements, condominium maps, plats, easements,
covenants, declarations, licenses and permits affecting or concerning the Real
Property.

9.11 Loan-to-Value.
-------------------

Permit the unpaid principal balance of any Loan plus all amounts committed and
not yet advanced thereunder to exceed seventy-five percent (75%) of the value of
the Real Property, upon completion of renovation and stabilization, as approved
or determined by Lender in its sole discretion after its review of the latest
Approved Appraisal. If for any reason the loan-to-value percentage exceeds said
percentage, then Borrower shall upon Lender's demand, immediately reduce the
unpaid principal balance of the Loan to reduce the loan-to-value percentage to,
at or below said percentage.

                                       22
<PAGE>

9.12 Loan-to-Cost.
------------------

Permit the outstanding principal balance of any Loan to exceed a loan-to-cost
ratio of seventy-five percent of the acquisition and Project costs for the Real
Property. If for any reason the loan to cost ratio exceeds said percentage, the
Borrower shall upon Lender's request immediately reduce the outstanding
principal of the Loan to below such percentages.

9.13 Government Regulation.
---------------------------

Be or become subject at any time to any law, regulation, or list of any
government agency (including, without limitation, the U.S. Office of Foreign
Asset Control list) that prohibits or limits Lender from making any advance or
extension of credit to Borrower or from otherwise conducting business with
Borrower, or fail to provide documentary and other evidence of Borrower's
identity as may be requested by Lender at any time to enable Lender to verify
Borrower's identity or to comply with any applicable law or regulation,
including, without limitation, Section 326 of the USA Patriot Act of 2001, 31
U.S.C. Section 5318.

Section 10. Events of Default.
------------------------------

Each or any one of the following shall constitute an Event of Default under this
Agreement.

10.1 Event of Default.
----------------------

The occurrence of any one or more of the following events or conditions shall
constitute an "Event of Default" under this Agreement.

          a. Any failure to pay any principal or interest under the Note when
     the same becomes due and payable and such failure continues for ten (10)
     days after notice thereof to Borrower, or the failure to pay any other sum
     due under the Note, this Agreement or any Loan Document when the same shall
     become due and payable and such failure continues for ten (10) days after
     notice thereof to Borrower. No notice, however, shall be required for any
     amounts due upon maturity of the Note.

          b. Any failure or neglect to perform or observe any of the covenants,
     conditions or provisions of this Agreement, the Note, any Loan Document or
     any other document or instrument executed or delivered in connection with
     the Loan (other than a failure or neglect described in one or more of the
     other provisions of this Section 10) and such failure or neglect either
     cannot be remedied or, if it can be remedied, it continues unremedied for a
     period of thirty (30) days after notice thereof to Borrower.

          c. Any warranty, representation or statement contained in this
     Agreement, in the Note or in any Loan Document or any other document or
     instrument executed or delivered in connection with the Loan, or made or
     furnished to Lender by or on behalf of Borrower, that shall be or shall
     prove to have been false when made or furnished.

          d. The filing by Borrower or any Guarantor (or against Borrower or
     such Guarantor to which Borrower or such Guarantor acquiesces or that is
     not dismissed within sixty (60) days after the filing thereof) of any
     proceeding under the federal bankruptcy laws now or hereafter existing or
     any other similar statute now or hereafter in effect; the entry of an order
     for relief under such laws with respect to Borrower or such Guarantor; or
     the appointment of a receiver, trustee, custodian or conservator of all or
     any part of the assets of Borrower or such Guarantor.

          e. The insolvency of Borrower or any Guarantor or the execution by
     Borrower or any Guarantor of an assignment for the benefit of creditors; or
     the convening by Borrower or any Guarantor of a meeting of their creditors,
     or any class thereof, for purposes of effecting a moratorium upon or
     extension or composition of its debts; or the failure of Borrower or any
     Guarantor to pay their debts as they mature; or if Borrower or any
     Guarantor are generally not paying their debts as they mature.

          f. The admission in writing by Borrower or any Guarantor that they are
     unable to pay their debts as they mature or that they are generally not
     paying their debts as they mature.

                                       23
<PAGE>

          g. The death or incapacity or dissolution of any Guarantor or the
     revocation of any Guaranty by any Guarantor.

          h. Any levy or execution upon, or judicial seizure of any portion of
     any Collateral.

          i. Any attachment or garnishment of, or the existence or filing of any
     lien or encumbrance, other than any lien or encumbrance permitted by a Deed
     of Trust, against any portion of any Collateral that is not removed or
     released within thirty (30) days after its creation.

          j. The institution of any legal action or proceedings to enforce any
     lien or encumbrance upon any portion of any Collateral or security for the
     Loan, that is not dismissed within thirty (30) days after its institution
     other than for mechanics lien or which a bond has been posted as provided
     herein.

          k. The occurrence of any default under the Note, any of the Loan
     Documents or any other document or instrument executed or delivered in
     connection with the Loans and the expiration of any applicable notice and
     cure period.

          l. The occurrence of any event of default under any document or
     instrument given by Borrower, any Guarantor, or any entity owned by all or
     any of the same persons or entities that own Borrower in connection with
     any other indebtedness or obligation of Borrower, any Guarantor, or any
     such entity owed to Lender.

          m. Any such action shall be taken by any Governmental Authority that
     would materially and adversely affect timely substantial completion of the
     Project by the Completion Date or the use or occupation of the Project for
     their intended purpose and such action shall not have been reversed or
     remedied within a period of thirty (30) days from the taking thereof.

          n. If Borrower fails to construct the Improvements in substantial
     accordance with the Construction Documents and such failure is not cured
     within twenty (20) days after written notice of such default by Lender to
     Borrower or if the failure is for a reason beyond the control of Borrower,
     then for a reasonable time not to exceed sixty (60) days, so long as
     Borrower is diligently pursuing a cure.

          o. If any Governmental Authority should declare a default under any
     subdivision agreement or otherwise refuses to issue any permits necessary
     for the development of any Project or any certificates of occupancy
     required for the occupancy of any Project as a result of any action or
     failure to act attributable to Borrower.

          p. A transfer, sale or conveyance of any of the Collateral prohibited
     under any of the Loan Documents.

          q. The failure of the Guarantor to pay any amounts due under any Loan
     within five (5) days of the date the same became due.

          r. The failure or neglect of Guarantor to perform or observe any of
     the covenants, conditions or provisions of Guaranty within ten (10) days of
     notice or any breach of any warranty or representation contained in the
     Guaranty.

                                       24
<PAGE>

Section 11. Effect of an Event of Default; Remedies.
----------------------------------------------------

If any Event of Default shall occur, Lender, at Lender's option, may cease
making any Advances under any Loan and/or may accelerate the Obligations, at
Lender's option, to become immediately due and payable. Upon an Event of
Default, Lender shall have no obligation to review and approve any new proposed
projects. Upon an Event of Default, all sums due under the Loan Documents shall
accrue interest at a rate ("Default Rate") of interest equal to 4% per annum
over the pre-default rate of interest. In addition to accelerating the
Obligations due and payable under the Loan, Lender may exercise any other remedy
it may have under this Agreement, any Loan Document, or any Security Document,
or those available at law or in equity or by statute, including, without
limitation, the rights of specific performance. Lender may elect to enforce the
Loan or any of its rights or remedies successively, concurrently, or
consecutively, in any order and at any time or from time to time as it may so
determine in its sole and absolute discretion. No failure or delay on the part
of Lender in exercising any right, power or privilege under this Agreement, the
Loan Documents or under the law, and no course of dealing between Borrower and
Lender shall operate as a waiver hereof or thereof, nor shall any single or
partial exercise of any right, power or privilege hereunder preclude any other
or further exercise of any other right, power or privilege. Borrower hereby
waives any defense or claim of marshalling or that Lender must proceed against
any particular Collateral in any particular order or at any particular time.
Without limiting the foregoing, upon the occurrence of an Event of Default,
Lender shall have the right, acting on its own behalf or through a court
appointed receiver which may be appointed upon ex parte application without
notice to Borrower, to take possession of the Collateral and perform any and all
work it deems advisable or necessary to protect the Improvements and complete
them substantially in accordance with the Construction Documents. Borrower
hereby irrevocably constitutes and appoints Lender and/or any court appointed
receiver its attorney-in-fact with full power and authority upon the occurrence
of an Event of Default to do all or any of the following: (a) take possession
of, protect and complete the Improvements; (b) use funds not disbursed pursuant
to the Loan for the purpose of completing the Improvements and payment of costs
related thereto; (c) make such additions, changes and corrections in the
Construction Documents as deemed necessary or desirable by Lender to complete
the Project without loss to Lender; (d) employ such Contractors, subcontractors,
agents, architects and other persons that Lender deems necessary or desirable to
complete the Project; (e) pay, settle or compromise all existing invoices,
charges and claims relating to the Real Property and/or the Improvements as it
deems necessary for completion of the Improvements and clearance of title to the
Real Property for protection of its interest; (f) prosecute and defend all
actions and proceedings in connection with construction of the Improvements and
apply the proceeds of any judgment in any such action against any of the
Obligations as it determines in its sole discretion; (g) execute, acknowledge
and deliver all instruments and documents in the name of Borrower and do and
perform all acts in the name of Borrower that Lender deems necessary or
appropriate to complete the construction of the Improvements; (h) lease the Real
Property and execute and deliver leases in the name of Borrower. Nothing
contained in this Section shall prohibit Lender from altering the Construction
Documents to effect a reduction of the cost of any item therein when in the
exercise of reasonable judgment Lender determines that such action is necessary
to provide for the sale of all or a portion of the Improvements or to protect or
enhance the value of the Improvements or Real Property as security for
satisfaction of the Obligations. No delay or failure of Lender in the exercise
of any right or remedy shall be deemed a waiver of any further exercise of such
right or remedy or of any other rights of Lender as to any security for the
Obligations, and shall not affect the rights of Lender to enforce payment of the
Loan and to recover judgment for any portion thereof remaining unpaid. The
rights and remedies herein expressed are cumulative and not exclusive of any
right or remedy that may be available to Lender under its Loan Documents or by
law or otherwise. Borrower specifically waives any obligation of Lender, if any,
to accept a deed in lieu or to pursue any Collateral at any particular time.

                                       25
<PAGE>

Section 12. Action Upon Agreement.
----------------------------------

12.1 No Third Party Beneficiaries.
----------------------------------

This Agreement is made for the sole protection and benefit of the parties hereto
and no other person or organization shall have any right of action hereon.

12.2 Integration.
-----------------

This Agreement embodies the entire Agreement of the parties with regard to the
subject matter hereof. There are no representations, promises, warranties,
understandings or agreements expressed or implied, oral or otherwise, in
relation thereto, except those expressly referred to or set forth herein.
Borrower acknowledges that the execution and delivery of this Agreement is its
free and voluntary act and deed, and that said execution and delivery have not
been induced by, nor done in reliance upon, any representations, promises,
warranties, understandings or agreements made by Lender, its agents, officers,
employees or representatives.

12.3 Modifications.
-------------------

No promise, representation, warranty or agreement made subsequent to the
execution and delivery of this Agreement by either party hereto, and no
revocation, partial or otherwise, or change, amendment or addition to, or
alteration or modification of, this Agreement shall be valid unless the same
shall be in writing signed by all parties hereto.

12.4 No Joint Venture.
----------------------

Lender and Borrower each have separate and independent rights and obligations
under this Agreement. Nothing contained herein shall be construed as creating,
forming or constituting any partnership, joint venture, merger or consolidation
of Borrower and Lender for any purpose or in any respect.

Section 13.  General.
---------------------

13.1 Setoff. Borrower hereby grants to Lender a security interest in, and Lender
is hereby authorized at any time and from time to time, without prior notice to
Borrower (any such notice being expressly waived by the Borrower), to set off
and apply, any and all accounts and deposits (general or special, time or
demand, provisional or final) at any time held by Lender, or any branch,
subsidiary, or affiliate of Lender, and all other indebtedness at any time owing
by Lender or any branch, subsidiary, or affiliate of Lender, to or for the
credit or the account of Borrower (including all accounts held jointly with
another, but excluding any IRA or Keogh accounts, or any trust accounts for
which a security interest would be prohibited by law), against any and all of
the Obligations of Borrower now or hereafter existing under the Loan Documents.
Such security interest may be enforced, and such right of setoff may be
exercised, by Lender irrespective of (i) whether or not Lender shall have made
any demand under the Loan Documents and (ii) whether such Obligations are
contingent, matured, or unmatured. Lender agrees promptly to notify Borrower
after any such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application. The rights
of Lender under this paragraph are in addition to other rights and remedies
(including, without limitation, other rights of setoff) which Lender may have.

13.2 Survival and Severability.
-------------------------------

This Agreement shall survive the making of the Loan and shall continue so long
as any part of the Loan, or any extension or renewal thereof, remains
outstanding. If any provision of this Agreement is held to be invalid, illegal,
or unenforceable in any jurisdiction, the validity, legality and enforceability
of that provision in any other jurisdiction, and the validity, legality and
enforceability of the remaining provisions hereof in all jurisdictions, shall
not be affected or impaired in any way.

                                       26
<PAGE>

13.3 Discretionary Rights.
--------------------------

All rights, powers and remedies granted Lender herein, or otherwise available to
Lender, are for the sole benefit and protection of Lender, and Lender may
exercise any such right, power or remedy at its option and in its sole and
absolute discretion without any obligation to do so. In addition, if, under the
terms hereof, Lender is given two or more alternative courses of action, Lender
may elect any alternative or combination of alternatives, at its option and in
its sole and absolute discretion. All monies advanced by Lender under the terms
hereof and all amounts paid, suffered or incurred by Lender in exercising any
authority granted herein, including reasonable attorneys' fees, shall be secured
by the Security Documents, shall bear interest at the highest rate payable on
the Loan until paid, and shall be due and payable by Borrower to Lender
immediately without demand.

13.4 Standard of Review.
------------------------

Whenever any of the Loan Documents require Lender's consent or approval, such
consent or approval may be granted or withheld by Lender in Lender's sole and
absolute discretion, for any reason or no reason whatsoever, unless the context
of such sentence specifically requires Lender to act reasonably. In such cases,
it shall be reasonable for Lender to act in accordance with the terms of the
Loan Documents or as would otherwise be reasonable for national banks located in
Denver, Colorado. In either case, Lender may impose additional conditions and
requirements prior to granting such consents or approvals.

13.5 Indemnity.
---------------

Borrower shall indemnify and hold Lender harmless from and against all claims,
costs, expenses, actions, suits, proceedings, losses, damages and liabilities of
any kind whatsoever, including but not limited to attorneys' fees and expenses,
arising out of any matter relating, directly or indirectly, to the Loan, to the
ownership, development, construction, or sale of the Real Property and
Improvements, whether resulting from internal disputes of Borrower, disputes
between Borrower and any Guarantor, or whether involving other third persons or
entities, or out of any other matter whatsoever related to any of the Loan
Documents, or any property encumbered thereby, but excluding any claim or
liability which arises as the direct result of the gross negligence or willful
misconduct of Lender. This indemnity provision shall continue in full force and
effect and shall survive not only the making of the Loan and the Advances but
shall also survive the repayment of the Loan and the performance of all of
Borrower's other obligations hereunder.

13.6 Joint and Several.
-----------------------

If Borrower consists of more than one person or entity their liability shall be
joint and several. The provisions hereof shall apply to the parties according to
the context thereof and without regard to the number or gender of words or
expressions used.

13.7 Time of Essence.
---------------------

Time is expressly made of the essence of this Agreement.

13.8 Notices.
-------------

All notices required or permitted to be given hereunder shall be in writing and
may be given in person or by United States mail, by delivery service or by
electronic transmission. All notices (excluding payment notices) given to
Borrower by Lender shall be given to Guarantor contemporaneously therewith. Any
notice directed to a party to this Agreement shall become effective upon the
earliest of the following: (a) actual receipt by that party; (b) delivery to the
designated address of that party, addressed to that party; or (c) if given by
certified or registered United States mail, twenty-four (24) hours after deposit
with the United States Postal Service, postage prepaid, addressed to that party
at its designated address. The initial designated address of a party shall be
the address of that party shown below or such other address as that party, from
time to time, may specify by notice to the other parties.

                                       27
<PAGE>

        Borrower:               Across America Real Estate Development
                                1440 Blake Street
                                Denver, CO  80202

        Guarantor:              G. Brent Backman        GDBA Investments, LLLP
                                                        1440 Blake Street
                                                        Denver, CO  80202
                                Karen A. Backman
                                70 Avalanche Canyon
                                Jackson Hole, WY  83001

        Lender:                 Vectra BankColorado, NA
                                8000 East Belleview, Suite A-100
                                Greenwood Village, Colorado  80111

13.9 Payment of Costs.
----------------------

Borrower shall pay upon demand all costs and expenses arising from the
preparation of this Agreement, the closing of the Loan, the making of Advances
and the monitoring and administration of the Loan, including but not limited to
title insurance premiums, other title company charges, recording and filing
fees, costs of Uniform Commercial Code searches, Lender's in-house and outside
attorneys' fees, if any, Lender's documentation fee, Lender's inspection fees,
environmental review fees, appraisal and appraisal review fees, any intangible
or recording taxes and any other charges that may be imposed on Lender as a
direct result of this transaction.

13.10 Choice of Law.
--------------------

This Agreement shall be governed by and construed according to the laws of the
State of Colorado, without giving effect to conflict of laws principles.

13.11 Successors.
-----------------

Except as otherwise provided herein, this Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and their successors and
assigns.

13.12 Headings.
---------------

The headings or captions of sections and paragraphs in this Agreement are for
reference only, do not define or limit the provisions of such sections or
paragraphs, and shall not affect the interpretation of this Agreement.

13.13 Assignments and Participations and Information Sharing.
-------------------------------------------------------------

Lender, at any time, shall have the right to sell, assign, transfer, or
negotiate the Loan and the Loan Documents, in whole or in part, and to grant
participation interests in the Loan and the Loan Documents. Borrower hereby
acknowledges and agrees that any such disposition shall give rise to a direct
obligation of Borrower to each such assignee or participant. Lender is
authorized, without any limitations whatsoever, to share with any actual or
prospective assignee or participant, any Lender's affiliate, any derivative
counter parties and any rating agencies, any customer information or document
that Lender may have or obtain regarding the Loan, the Loan Documents, the
Projects, Borrower, or any Guarantor of the Loan. In addition, Lender is
authorized, without any limitations whatsoever, to furnish such information to
affiliates of Lender.

13.14 Counterparts.
-------------------

This Agreement may be executed in counterparts, all of which executed
counterparts shall together constitute a single document. Signature pages may be
detached from the counterparts and attached to a single copy of this Agreement
to physically form one document.

13.15 Partial Payments.
-----------------------

Borrower agrees that partial payments of any installment or amount due to
Lender, even if indorsed and negotiated by Lender, shall not constitute an
accord and satisfaction of the full installment or amount due unless Borrower
follows the following procedures: Any proposal by Borrower for a partial
payment/accord and satisfaction must be presented directly to the officer
handling the administration of the Loan, together with correspondence
specifically requesting that Borrower be relieved of the balance of the
obligation, and stating the specific dollar amount of the requested release.

                                       28
<PAGE>

Lender may unilaterally reject such proposal. Such proposal shall only be deemed
accepted if such officer responds to Borrower in writing specifically relieving
Borrower of the balance of the obligation by identifying the amount forgiven in
a specific dollar amount. In the event Lender cashes an instrument under which
Borrower asserts an accord and satisfaction, Lender shall have one (1) year from
the date the instrument was negotiated to return the partial payment and rescind
the accord and satisfaction.

13.16 USA PATRIOT ACT NOTIFICATION.
-----------------------------------

The following notification is provided to Borrower pursuant to Section 326 of
the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

        IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT.
        -----------------------------------------------------------------

To help the government fight the funding of terrorism and money laundering
activities, Federal law requires all financial institutions to obtain, verify
and record information that identifies each person or entity that opens an
account, including any deposit account, treasury management account, loan, other
extension of credit, or other financial services product. What this means for
Borrower: When Borrower opens an account, if Borrower is an individual Lender
will ask for Borrower's name, taxpayer identification number, residential
address, date of birth, and other information that will allow Lender to identify
Borrower, and if Borrower is not an individual Lender will ask for Borrower's
name, taxpayer identification number, business address, and other information
that will allow Lender to identify Borrower. Lender may also ask, if Borrower is
an individual to see Borrower's driver's license or other identifying documents,
and if Borrower is not an individual to see Borrower's legal organizational
documents or other identifying documents.

13.17 WAIVER OF SPECIAL DAMAGES.
--------------------------------

BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT BORROWER
MAY HAVE TO CLAIM OR RECOVER FROM LENDER IN ANY LEGAL ACTION OR PROCEEDING ANY
SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

13.18 JURY WAIVER.
------------------

BORROWER, GUARANTOR AND LENDER HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND
UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
DISPUTE (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) BETWEEN OR AMONG THEM
ARISING OUT OF OR IN ANY WAY RELATED TO THIS DOCUMENT, ANY OTHER LOAN DOCUMENT
OR ANY RELATIONSHIP BETWEEN LENDER AND BORROWER. THIS PROVISION IS A MATERIAL
INDUCEMENT TO LENDER TO PROVIDE THE FINANCING DESCRIBED HEREIN OR IN THE OTHER
LOAN DOCUMENTS.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

                              "Lender"

                              VECTRA BANK COLORADO, NATIONAL ASSOCIATION

                              By: /s/
                                  ----------------------------------------------
                                  Vice President

                              "Borrower"

                              ACROSS AMERICA REAL ESTATE DEVELOPMENT CORP.,
                              a Colorado corporation

                              By: /s/
                                  ----------------------------------------------
                                  President

                                       29
<PAGE>

                              "Guarantor"

                              GDBA INVESTMENTS, LLLP,
                              a Colorado limited liability limited partnership

                              By: /s/ Brent Backman
                                  ----------------------------------------------
                                  G. Brent Backman, General Partner

                                   /s/ Brent Backman
                                  ----------------------------------------------
                                  G. Brent Backman, Individually

                                   /s/ Karen A. Backman
                                  ----------------------------------------------
                                  Karen A. Backman, Individually

                                       30
<PAGE>

                                    EXHIBIT A

                  As of the Quarter Ending ____________________

The undersigned hereby certifies to Bank that the following financial
information has been taken from the Guarantor's books and records which are
complete and accurate and the following calculations of the financial covenants
specified in the Credit Agreement are true and correct:

a) Guarantor shall not permit Guarantors' liquidity at any time to be less than
$15,000,000 to be measured quarterly.

              x Required                  Actual

              $15,000,000             $____________

b) Attached hereto are the brokerage and bank account statements upon which
Guarantor is relying in order to certify compliance with the above liquidity
covenant.

The undersigned further certifies that (a) Guarantor is in compliance with all
covenants contained in the Credit Agreement, and (b) there has been no Event of
Default under the Credit Agreement, which has not been cured or waived, and no
potential Event of Default has occurred.

                            GDBA INVESTMENTS, LLLP,
                            a Colorado limited liability
                            limited partnership

                            By:
                                   -------------------------------

                            Title:
                                   -------------------------------

                            Date:
                                   -------------------------------

                                    ------------------------------
                                    Guarantor

                                    ------------------------------
                                    Guarantor

                                       31
<PAGE>

                                    EXHIBIT B

                                     (SNDA)

                                       32Exhibit
10.1

 

 

[Published
CUSIP Number:                        ]

 

CREDIT
AGREEMENT

 

Dated as of April 27, 2005

among

 

DADE BEHRING INC.,

as Borrower

and

 

DADE
BEHRING HOLDINGS INC.,

and

 

CERTAIN
SUBSIDIARIES

as Guarantors,

 

BANK OF
AMERICA, N.A.,
as Administrative Agent, Domestic Swing Line Lender,

Foreign Swing Line Lender and
L/C Issuer,

and

 

CITICORP
USA, INC.,

as Syndication Agent

and

 

BNP
PARIBAS,

and

 

THE ROYAL
BANK OF SCOTLAND PLC

and

 

DRESDNER
BANK AG IN FRANKFURT AM MAIN,

as Documentation Agents

and

 

The Other Lenders Party Hereto

 

BANC OF
AMERICA SECURITIES LLC

 

and

 

CITIGROUP
GLOBAL MARKETS INC.,

as
Joint-Lead Arrangers and Joint Book Managers

 

 

 

TABLE OF
CONTENTS

 

	
  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I
  DEFINITIONS AND ACCOUNTING TERMS

  	
   

  
	
   

  	
  1.01

  	
   

  	
  Defined
  Terms.

  	
   

  
	
   

  	
  1.02

  	
   

  	
  Other Interpretive
  Provisions.

  	
   

  
	
   

  	
  1.03

  	
   

  	
  Accounting Terms.

  	
   

  
	
   

  	
  1.04

  	
   

  	
  Exchange
  Rates; Currency Equivalents.

  	
   

  
	
   

  	
  1.05

  	
   

  	
  Additional
  Alternative Currencies.

  	
   

  
	
   

  	
  1.06

  	
   

  	
  Change of Currency.

  	
   

  
	
   

  	
  1.07

  	
   

  	
  Times of Day.

  	
   

  
	
   

  	
  1.08

  	
   

  	
  Letter of Credit Amounts.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II
  THE COMMITMENTS AND CREDIT EXTENSIONS

  	
   

  
	
   

  	
  2.01

  	
   

  	
  Committed Loans.

  	
   

  
	
   

  	
  2.02

  	
   

  	
  Borrowings,
  Conversions and Continuations of Committed Loans.

  	
   

  
	
   

  	
  2.03

  	
   

  	
  Letters of Credit.

  	
   

  
	
   

  	
  2.04

  	
   

  	
  Domestic Swing Line
  Loans.

  	
   

  
	
   

  	
  2.05

  	
   

  	
  Foreign Swing Line
  Loans.

  	
   

  
	
   

  	
  2.06

  	
   

  	
  Prepayments

  	
   

  
	
   

  	
  2.07

  	
   

  	
  Termination
  or Reduction of Commitments.

  	
   

  
	
   

  	
  2.08

  	
   

  	
  Repayment of Loans.

  	
   

  
	
   

  	
  2.09

  	
   

  	
  Interest.

  	
   

  
	
   

  	
  2.10

  	
   

  	
  Fees.

  	
   

  
	
   

  	
  2.11

  	
   

  	
  Computation of
  Interest and Fees.

  	
   

  
	
   

  	
  2.12

  	
   

  	
  Evidence of Debt.

  	
   

  
	
   

  	
  2.13

  	
   

  	
  Payments
  Generally; Administrative Agent’s Clawback.

  	
   

  
	
   

  	
  2.14

  	
   

  	
  Sharing of
  Payments by Lenders.

  	
   

  
	
   

  	
  2.15

  	
   

  	
  Increase in Commitments.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
   

  
	
   

  	
  3.01

  	
   

  	
  Taxes.

  	
   

  
	
   

  	
  3.02

  	
   

  	
  Illegality.

  	
   

  
	
   

  	
  3.03

  	
   

  	
  Inability to
  Determine Rates.

  	
   

  
	
   

  	
  3.04

  	
   

  	
  Increased
  Costs; Reserves on Eurocurrency Rate Loans.

  	
   

  
	
   

  	
  3.05

  	
   

  	
  Compensation for Losses.

  	
   

  
	
   

  	
  3.06

  	
   

  	
  Mitigation
  Obligations; Replacement of Lenders.

  	
   

  
	
   

  	
  3.07

  	
   

  	
  Survival.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV
  CONDITIONS PRECEDENT TO Credit Extensions

  	
   

  
	
   

  	
  4.01

  	
   

  	
  Conditions
  of Initial Credit Extension.

  	
   

  
	
   

  	
  4.02

  	
   

  	
  Conditions to
  all Credit Extensions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
  5.01

  	
   

  	
  Existence,
  Qualification and Power.

  	
   

  

 

i

 

	
   

  	
  5.02

  	
   

  	
  Authorization; No
  Contravention.

  	
   

  
	
   

  	
  5.03

  	
   

  	
  Governmental
  Authorization; Other Consents.

  	
   

  
	
   

  	
  5.04

  	
   

  	
  Binding Effect.

  	
   

  
	
   

  	
  5.05

  	
   

  	
  Financial
  Statements; No Material Adverse Effect.

  	
   

  
	
   

  	
  5.06

  	
   

  	
  Litigation.

  	
   

  
	
   

  	
  5.07

  	
   

  	
  No Default.

  	
   

  
	
   

  	
  5.08

  	
   

  	
  Ownership of
  Property; Liens.

  	
   

  
	
   

  	
  5.09

  	
   

  	
  Environmental Compliance.

  	
   

  
	
   

  	
  5.10

  	
   

  	
  Taxes.

  	
   

  
	
   

  	
  5.11

  	
   

  	
  ERISA Compliance.

  	
   

  
	
   

  	
  5.12

  	
   

  	
  Subsidiaries.

  	
   

  
	
   

  	
  5.13

  	
   

  	
  Margin
  Regulations; Investment Company Act; Public Utility Holding Company Act.

  	
   

  
	
   

  	
  5.14

  	
   

  	
  Disclosure.

  	
   

  
	
   

  	
  5.15

  	
   

  	
  Compliance with Laws.

  	
   

  
	
   

  	
  5.16

  	
   

  	
  Intellectual
  Property; Licenses, Etc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI AFFIRMATIVE
  COVENANTS

  	
   

  
	
   

  	
  6.01

  	
   

  	
  Financial Statements.

  	
   

  
	
   

  	
  6.02

  	
   

  	
  Certificates;
  Other Information.

  	
   

  
	
   

  	
  6.03

  	
   

  	
  Notices.

  	
   

  
	
   

  	
  6.04

  	
   

  	
  Payment of Obligations.

  	
   

  
	
   

  	
  6.05

  	
   

  	
  Preservation of
  Existence, Etc.

  	
   

  
	
   

  	
  6.06

  	
   

  	
  Maintenance of Properties.

  	
   

  
	
   

  	
  6.07

  	
   

  	
  Maintenance of Insurance.

  	
   

  
	
   

  	
  6.08

  	
   

  	
  Compliance with Laws.

  	
   

  
	
   

  	
  6.09

  	
   

  	
  Books and Records.

  	
   

  
	
   

  	
  6.10

  	
   

  	
  Inspection Rights.

  	
   

  
	
   

  	
  6.11

  	
   

  	
  Use of Proceeds.

  	
   

  
	
   

  	
  6.12

  	
   

  	
  Additional Subsidiary
  Guarantors.

  	
   

  
	
   

  	
  6.13

  	
   

  	
  Pledge of Equity
  Interests.

  	
   

  
	
   

  	
  6.14

  	
   

  	
  Pledge of
  Real and Personal Property.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII NEGATIVE
  COVENANTS

  	
   

  
	
   

  	
  7.01

  	
   

  	
  Liens.

  	
   

  
	
   

  	
  7.02

  	
   

  	
  Investments.

  	
   

  
	
   

  	
  7.03

  	
   

  	
  Indebtedness.

  	
   

  
	
   

  	
  7.04

  	
   

  	
  Fundamental Changes.

  	
   

  
	
   

  	
  7.05

  	
   

  	
  Dispositions.

  	
   

  
	
   

  	
  7.06

  	
   

  	
  Restricted Payments.

  	
   

  
	
   

  	
  7.07

  	
   

  	
  Change in Nature of
  Business.

  	
   

  
	
   

  	
  7.08

  	
   

  	
  Transactions with
  Affiliates.

  	
   

  
	
   

  	
  7.09

  	
   

  	
  Use of Proceeds.

  	
   

  
	
   

  	
  7.10

  	
   

  	
  Financial Covenants.

  	
   

  
	
   

  	
  7.11

  	
   

  	
  Modifications
  of Subordinated Indebtedness; Limitation on Voluntary Prepayments of Subordinated
  Indebtedness.

  	
   

  
	
   

  	
  7.12

  	
   

  	
  Designated Senior Debt.

  	
   

  

 

ii

 

	
  ARTICLE VIII
  EVENTS OF DEFAULT AND REMEDIES

  	
   

  
	
   

  	
  8.01

  	
   

  	
  Events of Default.

  	
   

  
	
   

  	
  8.02

  	
   

  	
  Remedies Upon
  Event of Default.

  	
   

  
	
   

  	
  8.03

  	
   

  	
  Application of Funds.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX ADMINISTRATIVE
  AGENT

  	
   

  
	
   

  	
  9.01

  	
   

  	
  Appointment and
  Authority.

  	
   

  
	
   

  	
  9.02

  	
   

  	
  Rights as a Lender.

  	
   

  
	
   

  	
  9.03

  	
   

  	
  Exculpatory Provisions.

  	
   

  
	
   

  	
  9.04

  	
   

  	
  Reliance by
  Administrative Agent.

  	
   

  
	
   

  	
  9.05

  	
   

  	
  Delegation of Duties.

  	
   

  
	
   

  	
  9.06

  	
   

  	
  Resignation
  of Administrative Agent.

  	
   

  
	
   

  	
  9.07

  	
   

  	
  Non-Reliance
  on Administrative Agent and Other Lenders.

  	
   

  
	
   

  	
  9.08

  	
   

  	
  No Other Duties, Etc.

  	
   

  
	
   

  	
  9.09

  	
   

  	
  Administrative
  Agent May File Proofs of Claim.

  	
   

  
	
   

  	
  9.10

  	
   

  	
  Collateral and
  Guaranty Matters.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X MISCELLANEOUS

  	
   

  
	
   

  	
  10.01

  	
   

  	
  Amendments, Etc.

  	
   

  
	
   

  	
  10.02

  	
   

  	
  Notices;
  Effectiveness; Electronic Communication.

  	
   

  
	
   

  	
  10.03

  	
   

  	
  No Waiver; Cumulative
  Remedies.

  	
   

  
	
   

  	
  10.04

  	
   

  	
  Expenses;
  Indemnity; Damage Waiver.

  	
   

  
	
   

  	
  10.05

  	
   

  	
  Payments Set Aside.

  	
   

  
	
   

  	
  10.06

  	
   

  	
  Successors and Assigns.

  	
   

  
	
   

  	
  10.07

  	
   

  	
  Treatment
  of Certain Information; Confidentiality.

  	
   

  
	
   

  	
  10.08

  	
   

  	
  Right of Setoff.

  	
   

  
	
   

  	
  10.09

  	
   

  	
  Interest Rate Limitation.

  	
   

  
	
   

  	
  10.10

  	
   

  	
  Counterparts;
  Integration; Effectiveness.

  	
   

  
	
   

  	
  10.11

  	
   

  	
  Survival
  of Representations and Warranties.

  	
   

  
	
   

  	
  10.12

  	
   

  	
  Severability.

  	
   

  
	
   

  	
  10.13

  	
   

  	
  Replacement of Lenders.

  	
   

  
	
   

  	
  10.14

  	
   

  	
  Governing Law;
  Jurisdiction; Etc.

  	
   

  
	
   

  	
  10.15

  	
   

  	
  Waiver of Jury Trial.

  	
   

  
	
   

  	
  10.16

  	
   

  	
  USA PATRIOT Act Notice.

  	
   

  
	
   

  	
  10.17

  	
   

  	
  Judgment Currency.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI GUARANTY

  	
   

  
	
   

  	
  11.01

  	
   

  	
  The Guaranty.

  	
   

  
	
   

  	
  11.02

  	
   

  	
  Obligations
  Unconditional.

  	
   

  
	
   

  	
  11.03

  	
   

  	
  Reinstatement.

  	
   

  
	
   

  	
  11.04

  	
   

  	
  Certain Additional
  Waivers.

  	
   

  
	
   

  	
  11.05

  	
   

  	
  Remedies.

  	
   

  
	
   

  	
  11.06

  	
   

  	
  Rights of Contribution.

  	
   

  
	
   

  	
  11.07

  	
   

  	
  Guarantee
  of Payment; Continuing Guarantee.

  	
   

  
	
   

  	
   

  
	
  SIGNATURES

  	
   

  

 

iii

 

	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.01

  	
   

  	
  Mandatory Cost Formulae

  	
   

  
	
   

  	
  2.01

  	
   

  	
  Commitments and Applicable Percentages

  	
   

  
	
   

  	
  5.12

  	
   

  	
  Subsidiaries

  	
   

  
	
   

  	
  7.01

  	
   

  	
  Existing Liens

  	
   

  
	
   

  	
  7.02

  	
   

  	
  Existing Investments

  	
   

  
	
   

  	
  7.03

  	
   

  	
  Existing Indebtedness

  	
   

  
	
   

  	
  7.08

  	
   

  	
  Transactions with Affiliates

  	
   

  
	
   

  	
  10.02

  	
   

  	
  Administrative Agent’s Office; Certain
  Addresses for Notices

  	
   

  
	
   

  	
  10.06

  	
   

  	
  Processing and Recordation Fees

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  	
  Form of

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A

  	
   

  	
  Committed Loan Notice

  	
   

  
	
   

  	
  B-1

  	
   

  	
  Domestic Swing Line Loan Notice

  	
   

  
	
   

  	
  B-2

  	
   

  	
  Foreign Swing Line Loan Notice

  	
   

  
	
   

  	
  C

  	
   

  	
  Note

  	
   

  
	
   

  	
  D

  	
   

  	
  Compliance Certificate

  	
   

  
	
   

  	
  E

  	
   

  	
  Assignment and Assumption

  	
   

  
	
   

  	
  F

  	
   

  	
  Joinder Agreement

  	
   

  
	
   

  	
  G

  	
   

  	
  Opinion Matters

  	
   

  

 

iv

 

CREDIT
AGREEMENT

 

This CREDIT AGREEMENT (“Agreement”) is
entered into as of April 27, 2005, among DADE
BEHRING INC., a Delaware corporation (the “Borrower”), the Guarantors as
defined herein, each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), and BANK OF AMERICA, N.A., as Administrative Agent, Domestic Swing Line Lender,
Foreign Swing Line Lender and L/C Issuer, CITICORP USA, INC., as syndication
agent and BNP PARIBAS, THE ROYAL BANK OF SCOTLAND PLC and DRESDNER BANK AG IN
FRANKFURT AM MAIN as documentation agents.

 

The Borrower and the Guarantors have
requested, and the Lenders have agreed, to provide a revolving credit facility
in the initial aggregate amount of $600,000,000 (the “Revolving Credit
Facility”) on the terms and conditions set forth herein.

 

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

 

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

 

1.01                        Defined Terms.  As used
in this Agreement, the following terms shall have the meanings set forth below:

 

“Acquisition”, by any Person, means
the acquisition by such Person of capital stock of or other equity interests
in, or all or substantially all of the property of another Person, or of any
material product line or segment of business or division of a Person, whether
or not involving a merger or consolidation with such Person.

 

“Administrative Agent” means Bank of
America in its capacity as administrative agent under any of the Loan
Documents, or any successor administrative agent appointed in accordance with Section 9.06.

 

“Administrative Agent’s Office” means,
with respect to any currency, the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02 with respect to
such currency, or such other address or account with respect to such currency
as the Administrative Agent may from time to time notify to the Borrower and
the Lenders.

 

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

 

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

 

“Aggregate Commitments” means the
Commitments of all the Lenders.

 

“Agreement” means this Credit
Agreement.

 

“Alternative Currency” means each of
Euro, Yen and each other currency (other than Dollars) that is approved in
accordance with Section 1.05.

 

 

“Alternative Currency Equivalent”
means, at any time, with respect to any amount denominated in Dollars, the
equivalent amount thereof in the applicable Alternative Currency as reasonably
determined by the Administrative Agent, the Foreign Swing Line Lender or the
L/C Issuer, as the case may be, at such time on the basis of the Spot Rate
(determined in respect of the most recent Revaluation Date) for the purchase of
such Alternative Currency with Dollars.

 

“Alternative Currency Sublimit” means
an amount equal to the lesser of the Aggregate Commitments and
$100,000,000.  The Alternative Currency
Sublimit is part of, and not in addition to, the Aggregate Commitments.

 

“Applicable Percentage” means with
respect to any Lender at any time, the percentage (carried out to the ninth
decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time.  If the
commitment of each Lender to make Loans and the obligation of the L/C Issuer to
make L/C Credit Extensions have been terminated or if the Aggregate Commitments
have expired, then the Applicable Percentage of each Lender shall be determined
based on the Applicable Percentage of such Lender most recently in effect,
giving effect to any subsequent assignments. 
The initial Applicable Percentage of each Lender is set forth opposite
the name of such Lender on Schedule 2.01 or in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable.

 

“Applicable Rate” means, from time to
time, the following percentages per annum, based upon the Debt Rating as set
forth below:

 

	
  Pricing

  Level

  	
   

  	
  Debt
  Rating

  	
   

  	
  Applicable

  Margin for Base

  Rate Loans and

  Swing Line

  Loans

  	
   

  	
  Applicable

  Margin for

  Eurodollar

  Loans

  	
   

  	
  Letter of

  Credit Fee

  	
   

  	
  Commitment

  Fee

  	
   

  
	
  I

  	
   

  	
  >
  BBB+ / Baa1 / BBB+

  	
   

  	
  0.00

  	
  %

  	
  0.50

  	
  %

  	
  0.50

  	
  %

  	
  0.10

  	
  %

  
	
  II

  	
   

  	
  BBB / Baa2 /
  BBB

  	
   

  	
  0.00

  	
  %

  	
  0.625

  	
  %

  	
  0.625

  	
  %

  	
  0.125

  	
  %

  
	
  III

  	
   

  	
  BBB- / Baa3
  / BBB-

  	
   

  	
  0.00

  	
  %

  	
  0.75

  	
  %

  	
  0.75

  	
  %

  	
  0.175

  	
  %

  
	
  IV

  	
   

  	
  BB+ / Ba1 /
  BB+

  	
   

  	
  0.00

  	
  %

  	
  0.875

  	
  %

  	
  0.875

  	
  %

  	
  0.20

  	
  %

  
	
  V

  	
   

  	
  BB / Ba2 /

  BB

  	
   

  	
  0.125

  	
  %

  	
  1.125

  	
  %

  	
  1.125

  	
  %

  	
  0.225

  	
  %

  
	
  VI

  	
   

  	
  < BB /
  Ba2 / BB / unrated

  	
   

  	
  0.375

  	
  %

  	
  1.375

  	
  %

  	
  1.375

  	
  %

  	
  0.35

  	
  %

  

 

“Debt
Rating” means, as of any date of determination, the rating as determined by the Ratings Agencies (collectively, the “Debt
Ratings”) with respect to the Revolving Credit Facility; provided
that if a Debt Rating is issued by each of the Ratings Agencies and there is a
split rating, then the two highest of such Debt Ratings shall apply (with the Debt
Rating for Pricing Level I being the highest and the Debt Rating for Pricing
Level VI being the lowest) in determining the Pricing Level.  If there is a split in Debt Ratings of the
two highest ratings of the Ratings Agencies, then the lower Debt Rating of the
two highest shall apply in determining the Pricing Level or, if there is a
multiple split in Debt Ratings of the two highest ratings of the

 

2

 

Ratings Agencies, then the Debt Rating that
is one level lower than the highest rating shall apply in determining the
Pricing Level; provided, further, however, that the Applicable
Rate shall be at pricing Level VI if no Debt Rating is available with respect
to the Revolving Credit Facility from any of the Rating Agencies.

 

Initially, the Applicable Rate shall be determined based upon the Debt
Rating specified in the certificate delivered pursuant to Section 4.01(a)(vii).  Thereafter, each change in the Applicable
Rate resulting from a publicly announced change in the Debt Rating shall be
effective, during the period commencing on the date of the public announcement
thereof and ending on the date immediately preceding the effective date of the
next such change.

 

“Applicable Time” means, with respect
to any borrowings and payments in any Alternative Currency, the local time in
the place of settlement for such Alternative Currency as may be reasonably
determined by the Administrative Agent, the Foreign Swing Line Lender or the
L/C Issuer, as the case may be, in consultation with the Borrower, to be
necessary for timely settlement on the relevant date in accordance with normal
banking procedures in the place of payment.

 

“Approved Fund” means any Fund that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that administers or manages a Lender.

 

“Assignee Group” means two or more
Eligible Assignees that are Affiliates of one another or two or more Approved
Funds managed by the same investment advisor.

 

“Assignment and Assumption” means an
assignment and assumption entered into by a Lender and an Eligible Assignee
(with the consent of any party whose consent is required by Section 10.06(b)),
and accepted by the Administrative Agent, in substantially the form of Exhibit E
or any other form approved by the Administrative Agent in its reasonable
discretion.

 

“Attributable Indebtedness” means, on
any date, (a) in respect of any capital lease of any Person, the capitalized
amount thereof that would appear on a balance sheet as Indebtedness of such
Person prepared as of such date in accordance with GAAP, (b) in respect of any
Synthetic Lease Obligation, the capitalized amount of the remaining lease
payments under the relevant lease that would appear on a balance sheet as
Indebtedness of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a capital lease, (c) in respect of any Vendor
Financing Program of any Person, the capitalized amount thereof that would
appear on a balance sheet as Indebtedness of such Person prepared as of such
date in accordance with GAAP, and (d) in respect of any Securitization
Transaction of any Person, the outstanding principal amount of such financing,
after taking into account reserve accounts.

 

“Audited Financial Statements” means
the audited consolidated balance sheet of the Parent and its Subsidiaries for
the fiscal year ended December 31, 2004, and the related consolidated
statements of income or retained earnings and cash flows for such fiscal year
of the Parent and its Subsidiaries, including the notes thereto.

 

“Availability Period” means the period
from and including the Closing Date to the earliest of (a) the Maturity Date,
(b) the date of termination of the Aggregate Commitments pursuant to Section 2.07,
and (c) the date of termination of the commitment of each Lender to make Loans
and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant
to Section 8.02.

 

“Available Cash” means, as of any date
of determination, the aggregate amount of all domestic cash
and cash equivalents of the Loan Parties which such cash or cash equivalents
are not subject to any

 

3

 

Liens in favor of any Person (other than customary Liens in favor of
any depository bank or investment institution or similar entity), readily
marketable and available for the immediate payment or repayment of Indebtedness
as of such date of determination.

 

“Bank of America” means Bank of
America, N.A. and its successors.

 

“BAS” means Banc of America Securities
LLC and its successors.

 

“Base Rate” means for any day a
fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate
plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly
announced from time to time by Bank of America as its “prime rate.”  The “prime rate” is a rate set by Bank of
America based upon various factors including Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below
such announced rate.  Any change in such
rate announced by Bank of America shall take effect at the opening of business
on the day specified in the public announcement of such change.

 

“Base Rate Committed Loan” means a
Committed Loan that is a Base Rate Loan.

 

“Base Rate Loan” means a Loan that bears interest based on the Base
Rate.  All Base Rate Loans shall be
denominated in Dollars.

 

“Borrower” has the meaning specified
in the introductory paragraph hereto.

 

“Borrower Materials” has the meaning
specified in Section 6.02.

 

“Borrowing” means a Committed
Borrowing or a Swing Line Borrowing, as the context may require.

 

“Business Day” means any day other
than a Saturday, Sunday or other day on which commercial banks are authorized
to close under the Laws of, or are in fact closed in, the state where the
Administrative Agent’s Office with respect to Obligations denominated in
Dollars is located and:

 

(a)                                  if
such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Dollars, any fundings, disbursements, settlements and payments
in Dollars in respect of any such Eurocurrency Rate Loan, or any other dealings
in Dollars to be carried out pursuant to this Agreement in respect of any such
Eurocurrency Rate Loan, means any such day on which dealings in deposits in
Dollars are conducted by and between banks in the London interbank eurodollar
market;

 

(b)                                 if
such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Euro, any fundings, disbursements, settlements and payments in
Euro in respect of any such Eurocurrency Rate Loan, or any other dealings in
Euro to be carried out pursuant to this Agreement in respect of any such
Eurocurrency Rate Loan, means a TARGET Day;

 

(c)                                  if
such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in a currency other than Dollars or Euro, means any such day on
which dealings in deposits in the relevant currency are conducted by and
between banks in the London or other applicable offshore interbank market for
such currency;

 

(d)                                 if
such day relates to any fundings, disbursements, settlements and payments in a
currency other than Dollars or Euro in respect of a Eurocurrency Rate Loan
denominated in a

 

4

 

currency other than Dollars or Euro, or any
other dealings in any currency other than Dollars or Euro to be carried out
pursuant to this Agreement in respect of any such Eurocurrency Rate Loan (other
than any interest rate settings), means any such day on which banks are open
for foreign exchange business in the principal financial center of the country
of such currency; and

 

(e)                                  in
addition, if such day relates to any Foreign Swing Line Loan denominated in an
Alternate Currency “Business Day” shall not include any day on which commercial
banks are authorized to close under the Laws of, or are in fact closed in, the
jurisdiction where the Foreign Swing Line Lender’s Lending Office with respect
to Foreign Swing Line Loans is located.

 

“Cash Collateralize” has the meaning
specified in Section 2.03(g).

 

“Change in Law” means the occurrence,
after the date of this Agreement, of any of the following: (a) the adoption or
taking effect of any law, rule, regulation or treaty, (b) any change in any
law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or issuance
of any request, guideline or directive (whether or not having the force of law)
by any Governmental Authority.

 

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

 

(a)                                  the
Parent shall cease to own directly or indirectly 100% on a fully diluted basis
of the voting interest in the Borrower’s capital stock

 

(b)                                 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, 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 Parent entitled to vote for members of the board
of directors or equivalent governing body of the Borrower on a fully-diluted
basis;

 

(c)                                  during
any period of 12 consecutive months, a majority of the members of the board of
directors or other equivalent governing body of the Parent 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; or

 

(d)                                 so
long as any Indebtedness thereunder remains outstanding, any “Change of Control”
as such term is defined in the Senior Subordinated Note Indenture, or any
successor or similar provision, shall occur.

 

“Closing Date” means the first date
all the conditions precedent in Section 4.01 are satisfied or
waived.

 

“Code” means the Internal Revenue Code
of 1986.

 

5

 

“Collateral” means a collective
reference to the collateral which is identified in, and at any time will be
covered by, the Collateral Documents.

 

“Collateral Documents” means a
collective reference to the Collateral Pledge Documents and the Real and
Personal Property Collateral Documents.

 

“Collateral
Pledge Documents” means a collective reference to the pledge agreement and
such other documents executed and delivered in connection with the attachment
and perfection of the Administrative Agent’s security interests, for the
benefit of the holders of the Obligations, in certain Equity Interests of each
Domestic and certain first-tier Foreign Subsidiaries of a Loan Party as
required by Section 6.13.

 

“Collateral Pledge Effective Date”
means the first date (or, if a Collateral Pledge Release Date shall have occurred,
the first date after such Collateral Pledge Release Date) of the public
announcement upon which two of the three Ratings Agencies reduce the Debt
Rating to below BBB- (or the equivalent) and notice of such announcement by the
Administrative Agent to the Borrower.

 

“Collateral Pledge Release Date” means
the first date (subsequent to any Collateral Pledge Effective Date) of the
public announcement upon which two of the three Ratings Agencies increase the
Debt Rating to BBB- or higher (or the equivalent).

 

“Commitment” means, as to each Lender,
its obligation to (a) make Committed Loans to the Borrower pursuant to Section 2.01,
(b) purchase participations in L/C Obligations pursuant to Section 2.03,
and (c) purchase participations in Swing Line Loans pursuant to Section 2.04
and 2.05 in an aggregate principal amount at any one time outstanding
not to exceed the Dollar amount set forth opposite such Lender’s name on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in
accordance with this Agreement.

 

“Committed Borrowing” means a
borrowing consisting of simultaneous Committed Loans of the same Type, in the
same currency and, in the case of Eurocurrency Rate Loans, having the same
Interest Period made by each of the Lenders pursuant to Section 2.01.

 

“Committed Loan” has the meaning
specified in Section 2.01.

 

“Committed Loan Notice” means a notice
of (a) a Committed Borrowing, (b) a conversion of Committed Loans from one Type
to the other, or (c) a continuation of Eurocurrency Rate Loans, pursuant to Section 2.02(a),
which, if in writing, shall be substantially in the form of Exhibit A.

 

“Compliance Certificate” means a
certificate substantially in the form of Exhibit D.

 

“Consolidated Assets” means, at any
date, the consolidated assets of the Parent and its Subsidiaries at such date,
as determined in accordance with GAAP.

 

“Consolidated EBITDA” means, for any
period, for the Parent and its Subsidiaries on a consolidated basis, an amount
equal to Consolidated Net Income for such period plus (a) the following
to the extent deducted in calculating such Consolidated Net Income: (i)
Consolidated Interest Charges for such period, (ii) the provision for Federal,
state, local and foreign income taxes and any unitary, single business
franchise taxes measured by net income payable by the Borrower and its
Subsidiaries for such period, (iii) depreciation and amortization expense, (iv)
other non-cash charges of the Parent and its Subsidiaries, (v) all fees and
expenses associated with this financing or any other debt or equity financings,
acquisitions, restricted payments, divestitures or investments permitted under
this Agreement

 

6

 

and (vi) in the event the Parent or any Subsidiary consummated a
Permitted Acquisition during the relevant period, cost savings projected to be
realized as a result of a Permitted Acquisition to the extent such cost savings
would be permitted in a pro forma financial statement prepared in compliance
with Article 11 of Regulation S-X of the Securities Act of 1933 minus
(b) to the extent included in calculating such Consolidated Net Income;
Federal, state, local and foreign income tax credits of the Parent and its
Subsidiaries for such period.

 

“Consolidated Funded Indebtedness”
means, as of any date of determination, for the Parent and its Subsidiaries on
a consolidated basis, the sum of (a) the outstanding principal amount of all
obligations, whether current or long-term, for borrowed money (including
Obligations hereunder other than Obligations under Swap Contracts) and all
obligations for borrowed money evidenced by bonds, debentures, notes, loan
agreements or other similar instruments, (b) all purchase money Indebtedness,
(c) all direct obligations arising under letters of credit (including standby
and commercial), bankers’ acceptances and bank guaranties, (d) all obligations
in respect of the deferred purchase price of property or services to the extent
such deferral is considered Indebtedness (other than trade accounts payable and
accrued expenses in the ordinary course of business), (e) Attributable
Indebtedness in respect of capital leases, Synthetic Lease Obligations and
Securitization Transactions, (f) without duplication, all Guarantees with
respect to outstanding Indebtedness of the types specified in clauses (a)
through (e) above of Persons other than the Parent or any Subsidiary, and (g)
all Indebtedness of the types referred to in clauses (a) through (f) above
of any partnership or joint venture (other than a joint venture that is itself
a corporation or limited liability company) in which the Parent or a Subsidiary
is a general partner or joint venturer, unless such Indebtedness is expressly
made non-recourse to the Parent or such Subsidiary.

 

“Consolidated Interest Charges” means,
for any period, for the Parent and its Subsidiaries on a consolidated basis,
the sum of (a) all interest, premium payments, debt discount, fees and charges
of the Parent and its Subsidiaries in connection with borrowed money (including
capitalized interest) or in connection with the deferred purchase price of
assets to the extent such deferral is considered Indebtedness, in each case to
the extent treated as interest in accordance with GAAP, and (b) the portion of
rent expense of the Parent and its Subsidiaries with respect to such period
under capital leases that is treated as interest in accordance with GAAP, but
excluding amortization of any payments made to obtain interest rate protection
arrangements, original issue discount, deferred financing costs and any
interest on deferred compensation arrangements and cash payments under
consulting arrangements to the extent included in total interest expense.

 

“Consolidated Interest Coverage Ratio”
means, as of any date of determination, the ratio of (a) Consolidated EBITDA
for the period of the four prior fiscal quarters ending on such date to (b) (i) Consolidated Interest Charges for such period minus
(ii) interest income for such period minus (iii) Consolidated Interest
Charges associated with, to the extent capitalized on the balance sheet of the
Parent in accordance with GAAP, Consolidated Funded Indebtedness under any
Vendor Financing Program or any similar programs and factoring arrangements for
such period.

 

“Consolidated Leverage Ratio” means,
as of any date of determination, the ratio of (a) (i) Consolidated Funded
Indebtedness as of such date minus (ii) Available Cash to the extent
such Available Cash exceeds $50,000,000 and then only to the extent of such
excess in an aggregate amount up to $50,000,000 as of such date, minus
(iii) to the extent capitalized on the balance sheet of the Parent in
accordance with GAAP, Consolidated Funded Indebtedness pursuant to any Vendor
Financing Program or any similar programs and factoring arrangements in an
aggregate amount not to exceed $500,000,000) 
as of such date to (b)
Consolidated EBITDA for the period of the four fiscal quarters most recently
ended.

 

7

 

“Consolidated Net Income” means, for
any period, for the Parent and its Subsidiaries on a consolidated basis, the
net income (or loss) of the Parent and its Subsidiaries (excluding
extraordinary gains and extraordinary losses) for that period.

 

“Contractual Obligation” means, as to
any Person, any provision of any security issued by such Person or of any
agreement, instrument or other written contract to which such Person is a party
or by which it or any of its property is bound.

 

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

 

“Credit Extension” means each of the
following: (a) a Borrowing and (b) an L/C Credit Extension.

 

“Debt Rating” has the meaning
specified in the definition of “Applicable Rate.”

 

“Debtor Relief Laws” means the
Bankruptcy Code of the United States, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, or similar
debtor relief Laws of the United States or other applicable jurisdictions from
time to time in effect and affecting the rights of creditors generally.

 

“Default” means any event or condition
that constitutes an Event of Default or that, with the giving of any notice,
the lapse of grace periods, or both, would, unless cured or waived, be an Event
of Default.

 

“Default Rate” means an interest rate
equal to the interest rate (including any Applicable Rate and any Mandatory
Cost) otherwise applicable to such Loan plus 2% per annum.

 

“Defaulting Lender” means any Lender
that (a) has failed to fund any portion of the Committed Loans, participations
in L/C Obligations or participations in Swing Line Loans required to be funded
by it hereunder within one Business Day of the date required to be funded by it
hereunder, (b) has otherwise failed to pay over to the Administrative Agent or
any other Lender any other amount required to be paid by it hereunder within
one Business Day of the date when due, unless the subject of a good faith
dispute, or (c) has been deemed insolvent or become the subject of a bankruptcy
or insolvency proceeding.

 

“Disposition” or “Dispose”
means the sale, transfer, license, lease or other disposition (including any
sale and leaseback transaction) of any property by any Person, including any
sale, assignment, transfer or other disposal, with or without recourse, of any
notes or accounts receivable or any rights and claims associated therewith.

 

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

 

“Dollar Equivalent” means, at any time,
(a) with respect to any amount denominated in Dollars, such amount, and
(b) with respect to any amount denominated in any Alternative Currency,
the equivalent amount thereof in Dollars as reasonably determined by the
Administrative Agent, the Foreign Swing Line Lender or the L/C Issuer, as the
case may be, at such time on the basis of the Spot Rate (determined in respect
of the most recent Revaluation Date) for the purchase of Dollars with such
Alternative Currency.

 

“Domestic Subsidiary” means any Subsidiary
that is organized under the laws of the United States of America or any State
thereof or the District of Columbia.

 

8

 

“Domestic Swing Line” means the
revolving credit facility made available by the Domestic Swing Line Lender
pursuant to Section 2.04.

 

“Domestic Swing Line Borrowing” means
a borrowing of a Domestic Swing Line Loan pursuant to Section 2.04.

 

“Domestic Swing Line Lender” means
Bank of America in its capacity as provider of Domestic Swing Line Loans, or
any successor swing line lender hereunder appointed in accordance with Section 9.06.

 

“Domestic Swing Line Loan” has the
meaning specified in Section 2.04(a).

 

“Domestic Swing Line Loan Notice”
means a notice of a Domestic Swing Line Borrowing pursuant to Section 2.04(b),
which, if in writing, shall be substantially in the form of Exhibit B-1.

 

“Domestic Swing Line Sublimit” means
an amount equal to the lesser of (a) $75,000,000 and (b) the Aggregate
Commitments.  The Domestic Swing Line Sublimit
is part of, and not in addition to, the Aggregate Commitments.

 

“Eligible Assignee” means (a) a
Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d) any other
Person (other than a natural person) approved by (i) the Administrative Agent,
the L/C Issuer and the Swing Line Lender, and (ii) unless an Event of Default
has occurred and is continuing, the Borrower (each such approval not to be
unreasonably withheld or delayed); provided that notwithstanding the
foregoing, “Eligible Assignee” shall not include the Parent or any of the
Parent’s Affiliates or Subsidiaries.

 

“EMU” means the economic and monetary
union in accordance with the Treaty of Rome 1957, as amended by the Single
European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam Treaty of
1998.

 

“EMU Legislation” means the
legislative measures of the European Council for the introduction of,
changeover to or operation of a single or unified European currency.

 

“Environmental Laws” means any and all
Federal, state, local, and foreign statutes, laws, regulations, ordinances,
rules, judgments, orders, decrees, permits, concessions, grants, franchises,
licenses, agreements or restrictions relating to the protection of the
environment or the release of any Hazardous Materials into the environment.

 

“Environmental Liability” means any
liability, contingent or otherwise (including any liability for damages, costs
of environmental remediation, fines, penalties or indemnities), of the
Borrower, any other Loan Party or any of their respective Subsidiaries directly
or indirectly resulting from or based upon (a) violation of any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials or
(d) the release or threatened release of any Hazardous Materials into the
environment.

 

“Equity Interests” means, with respect
to any Person, all of the shares of capital stock of (or other ownership or
profit interests in) such Person, all of the warrants, options or other rights
for the purchase or acquisition from such Person of shares of capital stock of
(or other ownership or profit interests in) such Person, all of the securities
convertible into or exchangeable for shares of capital stock of (or other
ownership or profit interests in) such Person or warrants, rights or options
for the purchase or acquisition

 

9

 

from such Person of such shares (or such other interests), and all of
the other ownership or profit interests in such Person (including partnership,
member or trust interests therein), whether voting or nonvoting, and whether or
not such shares, warrants, options, rights or other interests are outstanding
on any date of determination.

 

“ERISA” means the Employee Retirement
Income Security Act of 1974.

 

“ERISA Affiliate” means any trade or
business (whether or not incorporated) under common control with the Borrower
within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to
Section 412 of the Code).

 

“ERISA Event” means (a) a Reportable
Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any
ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA
during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal
under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the
Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that
a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent
to terminate (other than a standard termination as described in Section 4041(b)
of ERISA), the treatment of a Plan amendment as a termination under
Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the
PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or
condition which constitutes grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan
or Multiemployer Plan; or (f) the imposition of any liability under
Title IV of ERISA, other than for PBGC premiums due but not delinquent
under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate.

 

“Euro” and “EUR” mean the
lawful currency of the Participating Member States introduced in accordance
with the EMU Legislation.

 

“Eurocurrency Rate Loan” means a
Committed Loan that bears interest at a rate based on the Eurocurrency
Rate.  Eurocurrency Rate Loans may be
denominated in Dollars or in an Alternative Currency.  All Committed Loans denominated in an
Alternative Currency must be Eurocurrency Rate Loans.

 

“Eurocurrency Base Rate” has the
meaning specified in the definition of Eurocurrency Rate.

 

“Eurocurrency Rate”  means
for any Interest Period with respect to a Eurocurrency Rate Loan, a rate per
annum determined by the Administrative Agent pursuant to the following formula:

 

	
   

  	
  Eurocurrency Rate =

  	
   

  	
  Eurocurrency Base Rate

  	
   

  
	
   

  	
  1.00 – Eurocurrency Reserve Percentage

  

Where,

 

“Eurocurrency
Base Rate” means, for such Interest Period, the rate per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
Reuters (or other commercially available source providing quotations of BBA
LIBOR as designated by the Administrative Agent from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for deposits in the relevant currency
(for delivery on the first day of such Interest Period) with a term equivalent
to such Interest Period.  If such rate is
not available at such time for any reason, then the “Eurocurrency Base Rate”
for such Interest Period shall be the rate per annum determined by the
Administrative Agent to be the rate at which deposits in the relevant currency
for delivery on the first day of

 

10

 

such Interest Period in Same Day Funds in the
approximate amount of the Eurocurrency Rate Loan being made, continued or
converted by Bank of America and with a term equivalent to such Interest Period
would be offered by Bank of America’s London Branch (or other Bank of America
branch or Affiliate) to major banks in the London or other offshore interbank
market for such currency at their request at approximately 11:00 a.m.  (London time) two Business Days prior to the
commencement of such Interest Period.

 

“Eurocurrency Reserve Percentage”
means, for any day during any Interest Period, the reserve percentage
(expressed as a decimal, carried out to five decimal places) in effect on such
day, whether or not applicable to any Lender, under regulations issued from
time to time by the FRB for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement)
with respect to Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”).  The Eurocurrency Rate for
each outstanding Eurocurrency Rate Loan shall be adjusted automatically as of
the effective date of any change in the Eurocurrency Reserve Percentage.

 

“Event of Default” has the meaning
specified in Section 8.01.

 

“Excluded First-Tier Foreign Subsidiaries”
means, collectively, first-tier Foreign Subsidiaries of any Loan Party that, on
a consolidated basis with their respective Subsidiaries, (a) own equal to or
less than 10% of the Consolidated Assets as of the last day of each of the two
most recently ended fiscal quarters of the Parent and (b) represent equal to or
less than 10% of the consolidated revenue of the Parent and its Subsidiaries
for the period of four consecutive fiscal quarters most recently ended.

 

“Excluded Property” means, with
respect to any Loan Party, including any Person that becomes a Loan Party after
the Closing Date as contemplated by Section 6.12, (i) any owned or
leased real or personal property of such Loan Party which is located outside of
the United States, (ii) any leased real property of such Loan Party, (iii) any
owned real property of such Loan Party which has a net book value of less than
$2,000,000, provided that the aggregate net book value of all real
property of all of the Loan Parties excluded pursuant to this clause (iii)
shall not exceed $10,000,000, (iv) any leased personal property of such Loan
Party, (v) any personal property of such Loan Party (including, without
limitation, motor vehicles) in respect of which perfection of a Lien is not
either (A) governed by the Uniform Commercial Code or (B) effected by appropriate
evidence of the Lien being filed in either the United States Copyright Office
or the United States Patent and Trademark Office, (vi) immaterial IP Rights,
and intent-to-use trademark applications until a verified statement of use is
filed with and accepted by the United States Patent and Trademark Office, (vii)
any receivables, books, records, accounts and other related assets that have
been pledged to secure any receivables or similar financing, factoring
arrangement, Vendor Financing Program or Securitization Transactions permitted
hereunder, (viii) property which by its terms cannot be pledged or limitations
on such pledges exist such that it would not be commercially reasonable to
expect a pledge of such assets to be provided, (ix) property the ownership of
which is governed by documents of title, (x) payroll, trust and petty cash
deposits accounts, (xi) such other immaterial assets and other assets in which
the Administrative Agent reasonably determines that the cost to obtain a
security interest in such assets is disproportionately high relative to the
value of such assets as collateral to the Lenders and (xii) the proceeds of the
foregoing.

 

“Excluded Taxes” means, with respect
to the Administrative Agent, any Lender, the L/C Issuer or any other recipient
of any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes),
by the United States and the jurisdiction (or any political subdivision
thereof) under the laws of which such recipient is organized or in which its
principal office is located and in the case of any Lender, in which its
applicable Lending Office is located, (b) any branch profits taxes imposed by
the United States or any similar tax imposed by any other

 

11

 

jurisdiction in which the Borrower is located and (c) except as
provided in the following sentence, in the case of a Foreign Lender (other than
an assignee pursuant to a request by the Borrower under Section 10.13),
any withholding or similar tax that is imposed or could be imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
hereto (or designates a new Lending Office) or is attributable to such Foreign
Lender’s failure or inability (other than as a result of a Change in Law) to
comply with Section 3.01(e), except to the extent that such Foreign
Lender (or its assignor, if any) was previously entitled in connection with its
role as a Lender under this Agreement, at the time of such designation of a new
Lending Office (or assignment), to receive additional amounts from the Borrower
with respect to such withholding tax pursuant to Section 3.01(a).

 

“Existing Credit Agreement” means that
certain Credit Agreement, dated as of October 3, 2002, among Dade Behring
Holdings, Inc., a Delaware corporation, Dade Behring Inc., a Delaware
corporation, as Borrower, the Lenders from time to time party thereto, Deutsche
Bank Securities Inc., as Lead Arranger and Lead Book Runner, Deutsche Bank AG,
New York Branch, as Administrative Agent, and General Electric Capital
Corporation and The Royal Bank of Scotland PLC, as Syndication Agents, as amended.

 

“Federal Funds Rate” means, for any
day, the rate per annum equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers on such day, as published by the Federal Reserve Bank
of New York on the Business Day next succeeding such day; provided that
(a) if such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as
so published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate (rounded upward, if necessary, to a whole
multiple of 1/100 of 1%) charged to Bank of America on such day on such
transactions as determined by the Administrative Agent.

 

“Fee Letter” means the letter
agreement, dated March 23, 2005, among the Borrower, the Administrative
Agent and BAS.

 

“Fitch” means Fitch Ratings, a Subsidiary
of Fimalac, S.A., and any successor thereto.

 

“Foreign Cash Equivalents” shall mean
certificates of deposit or bankers acceptances of any bank organized under the
laws of Canada, Japan or any country that is a member of the European Economic
Community whose short-term commercial paper rating from S&P is at least A-1
or the equivalent thereof or from Moody’s is at least P-1 or the equivalent
thereof, in each case with maturities of not more than twelve months from the
date of acquisition.

 

“Foreign Lender” means, any Lender
that is organized under the laws of a jurisdiction other than that in which the
Borrower is resident for tax purposes. 
For purposes of this definition, the United States, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction.

 

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

 

“Foreign Swing Line” means the
revolving credit facility made available by the Foreign Swing Line Lender
pursuant to Section 2.05.

 

“Foreign Swing Line Base Rate” means,
for any day (a) with respect to each Foreign Swing Line Loan denominated in
Euros, the rate of interest determined by the Administrative Agent and the
Foreign Swing Line Lender at which deposits in Euros in the approximate amount
of such Foreign Swing Line

 

12

 

Loan and having a term of one Business Day (or such other period not
exceeding twenty Business Days as may be agreed by the Borrower and the Foreign
Swing Line Lender) would be offered to major banks in the London interbank
market at their request at approximately 11:00 a.m. (London time) (or such
other period of time as the Administrative Agent determines is customary for
deposits in Euros for the applicable term) for the term for which such rate is
being determined, (b) with respect to each Foreign Swing Line Loan denominated
in Yen, the rate of interest equal to the higher of (i) the Short-Term Yen
Prime Rate in effect for such day and (ii) the Yen Call Rate plus 1/2 of 1% and
(c) with respect to all Foreign Swing Line Loans denominated in each
Alternative Currency (other than Euros and Yen), such rate as may be agreed
upon between the Borrower and the Foreign Swing Line Lender, which interest
rate shall be consistent with local market standards.

 

“Foreign Swing Line Base Rate Loan”
means a Foreign Swing Line Loan that bears interest based on the Foreign Swing
Line Base Rate.  All Foreign Swing Line
Loans shall be denominated in Alternative Currencies.

 

“Foreign Swing Line Borrowing” means a
borrowing of a Foreign Swing Line Loan pursuant to Section 2.05.

 

“Foreign Swing Line Lender” means Bank
of America in its capacity as provider of Foreign Swing Line Loans, or any
successor swing line lender hereunder appointed in accordance with Section 9.06.

 

“Foreign Swing Line Loan” has the
meaning specified in Section 2.05(a).

 

“Foreign Swing Line Loan Notice” means
a notice of a Foreign Swing Line Borrowing pursuant to Section 2.05(b),
which, if in writing, shall be substantially in the form of Exhibit B-2.

 

“Foreign Swing Line Sublimit” means an
amount equal to the lesser of (a) $25,000,000 and (b) the Aggregate
Commitments.  The Foreign Swing Line
Sublimit is part of, and not in addition to, the Aggregate Commitments.

 

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

 

“Fund” means any Person (other than a
natural person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its business.

 

“GAAP” means generally accepted
accounting principles in the United States that are applicable to the
circumstances as of the date of determination, consistently applied.

 

“Governmental Authority” means the
government of the United States or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank).

 

“Granting Lender” has the meaning
specified in Section 10.06(h).

 

“Guarantee” means, as to any Person,
any (a) any obligation, contingent or otherwise, of such Person guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
payable or performable by another Person (the “primary obligor”) in any manner,
whether directly or

 

13

 

indirectly, and including any obligation of such Person, direct or indirect,
(i) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation, (ii) to purchase or lease property,
securities or services for the purpose of assuring the obligee in respect of
such Indebtedness or other obligation of the payment or performance of such
Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of
income or cash flow of the primary obligor so as to enable the primary obligor
to pay such Indebtedness or other obligation, or (iv) entered into for the
purpose of assuring in any other manner the obligee in respect of such
Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or
(b) any Lien on any assets of such Person securing any Indebtedness or other
obligation of any other Person, whether or not such Indebtedness or other
obligation is assumed by such Person (or any right, contingent or otherwise, of
any holder of such Indebtedness to obtain any such Lien); provided,
however, the term “Guarantee” shall not include (i) endorsements for collection
or deposit, (ii) standard contractual indemnities not related to indebtedness
or (iii) recourse at customary levels in connection with securitization
transactions accounted for as sales.  The
amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in
respect of which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability (assuming such Person is required to
perform) in respect thereof as determined by the guaranteeing Person in good
faith.  The term “Guarantee” as a verb
has a corresponding meaning.

 

“Guarantors” means each Person
identified as a “Guarantor” on the signature pages hereto (including the
Parent) and each other Person that joins as a Guarantor pursuant to Section 6.12,
together with their successors and permitted assigns.

 

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

 

“Indebtedness” means, as to any
Person, without duplication, all of the following:

 

(a)                                  all
obligations of such Person for borrowed money and all such obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar
instruments;

 

(b)                                 all
direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances and bank guaranties;

 

(c)                                  net
obligations of such Person under any Swap Contract;

 

(d)                                 all
obligations of such Person to pay the deferred (greater than six (6) months)
purchase price of property or services (other than trade accounts payable and
accrual expenses in the ordinary course of business);

 

(e)                                  indebtedness
(excluding prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including indebtedness arising under
conditional sales or other title retention agreements), whether or not such
indebtedness shall have been assumed by such Person or is limited in recourse;

 

(f)                                    capital
leases and Synthetic Lease Obligations;

 

14

 

(g)                                 all
obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Equity Interest in such Person or any other
Person, valued, in the case of a redeemable preferred interest, at the greater
of its voluntary or involuntary liquidation preference plus accrued and
unpaid dividends; provided that Indebtedness
shall not include any amounts relating to preferred interests not treated as
Indebtedness under GAAP;

 

(h)                                 all
obligations under any Vendor Financing Program, but only to the extent the
capitalized amount thereof appears on a balance sheet as Indebtedness of such
Person prepared as of such date in accordance with GAAP;

 

(i)                                     all
obligations under any Securitization Transaction; and

 

(j)                                     all
Guarantees of such Person in respect of any of the foregoing.

 

For all purposes hereof, the Indebtedness of any Person shall include
the Indebtedness of any partnership or joint venture (other than a joint
venture that is itself a corporation or limited liability company) in which
such Person is a general partner or a joint venturer, but only to the extent
such Indebtedness is recourse to such Person. 
The amount of any net obligation under any Swap Contract on any date
shall be deemed to be the Swap Termination Value thereof as of such date.  The amount of any capital lease, Synthetic
Lease Obligation, obligation under any Securitization Transaction or obligation
under any Vendor Financing Program as of any date shall be deemed to be the
amount of Attributable Indebtedness in respect thereof as of such date.

 

“Indemnified Taxes” means Taxes other
than Excluded Taxes.

 

“Indemnitees” has the meaning
specified in Section 10.04(b).

 

“Information” has the meaning
specified in Section 10.07.

 

“Interest Payment Date” means, (a) as
to any Loan other than a Base Rate Loan, the last day of each Interest Period
applicable to such Loan and the Maturity Date; provided, however,
that if any Interest Period for a Eurocurrency Rate Loan exceeds three months,
the respective dates that fall every three months after the beginning of such
Interest Period shall also be Interest Payment Dates; and (b) as to any Base
Rate Loan (including a Domestic Swing Line Loan) and any Foreign Swing Line
Base Rate Loan, the last Business Day of each March, June, September and December and
the Maturity Date.

 

“Interest Period” means, as to each
Eurocurrency Rate Loan, the period commencing on the date such Eurocurrency
Rate Loan is disbursed or converted to or continued as a Eurocurrency Rate Loan
and ending on the date two-weeks, one, two, three, six, nine or twelve months
(to the extent available by all Lenders) thereafter, as selected by the
Borrower in its Committed Loan Notice; provided that:

 

(i)                                     any
Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day
falls in another calendar month, in which case such Interest Period shall end
on the next preceding Business Day;

 

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

 

(iii)                               no
Interest Period shall extend beyond the Maturity Date.

 

15

 

“Investment” means, as to any Person,
any direct or indirect acquisition or investment by such Person, whether by
means of (a) the purchase or other acquisition of capital stock or other
securities of another Person, (b) a loan, advance or capital contribution to,
Guarantee or assumption of debt of, or purchase or other acquisition of any
other debt or equity participation or interest in, another Person, including
any partnership or joint venture interest in such other Person and any
arrangement pursuant to which the investor Guarantees Indebtedness of such
other Person, or (c) the purchase or other acquisition (in one transaction or a
series of related transactions) of assets of another Person that constitute a
business unit; provided that the term “Investment” shall not include
stock or other securities acquired in connection with the satisfaction or
enforcement of Indebtedness or claims due or owing to the Parent or any of its
Subsidiaries (whether in connection with the bankruptcy of customers or
suppliers or otherwise) or as security for any such Indebtedness or claims.  For purposes of covenant compliance, the
amount of any Investment shall be the amount actually invested, without
adjustment for subsequent increases or decreases in the value of such
Investment.

 

“IP Rights” has the meaning specified
in Section 5.16.

 

“IRS” means the United States Internal
Revenue Service.

 

“ISP” means, with respect to any
Letter of Credit, the “International Standby Practices 1998” published by the
Institute of International Banking Law & Practice (or such later version
thereof as may be in effect at the time of issuance).

 

“Issuer Documents” means with respect
to any Letter of Credit, the Letter of Credit Application, and any other
document, agreement and instrument entered into by the L/C Issuer and the
Borrower (or any Subsidiary) or in favor the L/C Issuer and relating to any
such Letter of Credit.

 

“Joinder Agreement” means a joinder
agreement substantially in the form of Exhibit F executed and delivered
by a direct or indirect Subsidiary in accordance with the provisions of Section 6.12.

 

“Laws” means, collectively, all
international, foreign, Federal, state and local statutes, treaties, rules,
regulations, ordinances, codes and administrative or judicial orders, including
the interpretation or administration thereof by any Governmental Authority
charged with the enforcement, interpretation or administration thereof.

 

“L/C Advance” means, with respect to
each Lender, such Lender’s funding of its participation in any L/C Borrowing in
accordance with its Applicable Percentage. 
All L/C Advances shall be
denominated in Dollars.

 

“L/C Borrowing” means an extension of
credit resulting from a drawing under any Letter of Credit which has not been
reimbursed on the date when made or refinanced as a Committed Borrowing.  All L/C
Borrowings shall be denominated in Dollars.

 

“L/C Credit Extension” means, with
respect to any Letter of Credit, the issuance thereof or extension of the
expiry date thereof, or the increase of the amount thereof.

 

“L/C Issuer” means Bank of America in
its capacity as issuer of Letters of Credit hereunder, or any permitted
successor issuer of Letters of Credit hereunder appointed in accordance with Section 9.06.

 

“L/C Obligations” means, as at any
date of determination, the aggregate amount available to be drawn under all
outstanding Letters of Credit plus the aggregate of all Unreimbursed
Amounts, including

 

16

 

all L/C Borrowings.  For purposes
of computing the amount available to be drawn under any Letter of Credit, the
amount of such Letter of Credit shall be determined in accordance with Section 1.08.  For all purposes of this Agreement, if on any
date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of
Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding”
in the amount so remaining available to be drawn.

 

“Lender” has the meaning specified in
the introductory paragraph hereto and, as the context requires, includes the
Domestic Swing Line Lender and the Foreign Swing Line Lender.

 

“Lending Office” means, as to any
Lender, the office or offices of such Lender described as such in such Lender’s
Administrative Questionnaire, or such other office or offices as a Lender may
from time to time notify, in writing, the Borrower and the Administrative Agent
to the extent such selection shall not result in increased costs to the
Borrower.

 

“Letter of Credit” means any standby letter of credit issued hereunder.  Letters of Credit may be issued in Dollars or
in an Alternative Currency.

 

“Letter of Credit Application” means
an application and agreement for the issuance or amendment of a Letter of
Credit in the form from time to time in use by the L/C Issuer.

 

“Letter of Credit Expiration Date”
means the day that is seven days prior to the Maturity Date then in effect (or,
if such day is not a Business Day, the next preceding Business Day).

 

“Letter of Credit Fee” has the meaning
specified in Section 2.03(i).

 

“Letter of Credit Sublimit” means an
amount equal to $25,000,000.  The Letter
of Credit Sublimit is part of, and not in addition to, the Aggregate
Commitments.

 

“Lien” means any mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
other), charge, or preference, priority or other security interest or
preferential arrangement in the nature of a security interest of any kind or
nature whatsoever (including any conditional sale or other title retention
agreement, any easement, right of way or other encumbrance on title to real
property, and any financing lease having substantially the same economic effect
as any of the foregoing).

 

“Loan” means an extension of credit by
a Lender to a Borrower under Article II in the form of a Committed
Loan or a Swing Line Loan.

 

“Loan Documents” means this Agreement,
each Note, each Issuer Document, the Fee Letter and each of the Collateral
Documents, if any, required by Sections 6.12,  6.13 or 6.14
hereof.

 

“Loan Parties” means, collectively,
the Borrower and each Guarantor.

 

“Mandatory Cost” means, with respect
to any period, the percentage rate per annum determined in accordance with Schedule 1.01.

 

“Material Adverse Effect” means (a) a
material adverse change in, or a material adverse effect upon, the business,
assets, liabilities (actual or contingent), operations or financial condition
of the Parent, the Borrower and their Subsidiaries taken as a whole; (b) a
material impairment of the ability of any Loan Party to perform its material
obligations under any Loan Document to which it is a party; or (c) a material

 

17

 

adverse effect upon the legality, validity, binding effect or
enforceability against any Loan Party of any Loan Document to which it is a
party.

 

 “Material
Domestic Subsidiary” means any Wholly Owned, Domestic Subsidiary of the
Parent or the Borrower that, on a consolidated basis with its respective
Subsidiaries, (a) owns more than 5% of the Consolidated Assets as of the last
day of the most recently ended fiscal quarter of the Parent or (b) represents
more than 5% of the consolidated revenue of the Parent and its Subsidiaries for
the period of four consecutive fiscal quarters most recently ended.

 

“Maturity Date” means April 27,
2010.

 

“Moody’s” means Moody’s Investors
Service, Inc. and any successor thereto.

 

“Multiemployer Plan” means any
employee benefit plan of the type described in Section 4001(a)(3) of
ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to
make contributions, or would reasonably be expected to incur any liability.

 

“Note” means a promissory note made by
a Borrower in favor of a Lender evidencing Loans made by such Lender to the
Borrower, substantially in the form of Exhibit C.

 

“Obligations” means all advances to,
and debts, liabilities, obligations, covenants and duties of, any Loan Party
arising under any Loan Document, whether direct or indirect (including those
acquired by assumption), absolute or contingent, due or to become due, now
existing or hereafter arising and including (i) interest and fees that accrue
after the commencement by or against any Loan Party of any proceeding under any
Debtor Relief Laws naming such Person as the debtor in such proceeding and (ii)
any Swap Contract of any Loan Party to which a Lender or any Affiliate of such
Lender is a party.

 

“Organization Documents” means, (a)
with respect to any corporation, the certificate or articles of incorporation
and the bylaws (or equivalent or comparable constitutive documents with respect
to any non-U.S. jurisdiction); (b) with respect to any limited liability
company, the certificate or articles of formation or organization and operating
agreement; and (c) with respect to any partnership, joint venture, trust or
other form of business entity, the partnership, joint venture or other
applicable agreement of formation or organization and any agreement,
instrument, filing or notice with respect thereto filed in connection with its
formation or organization with the applicable Governmental Authority in the
jurisdiction of its formation or organization and, if applicable, any
certificate or articles of formation or organization of such entity.

 

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

 

“Outstanding Amount” means (i) with
respect to Committed Loans on any date, the Dollar Equivalent amount of the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Committed Loans occurring on
such date; (ii) with respect to Domestic Swing Line Loans on any date, the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Domestic Swing Line Loans
occurring on such date; (iii) with respect to Foreign Swing Line Loans on any
date, the Dollar Equivalent amount of the aggregate outstanding principal
amount thereof after giving effect to any borrowings and

 

18

 

prepayments or repayments of such Foreign Swing Line Loans occurring on
such date; and (iv) with respect to any L/C Obligations on any date, the Dollar
Equivalent amount of the aggregate outstanding amount of such L/C Obligations
on such date after giving effect to any L/C Credit Extension occurring on such
date and any other changes in the aggregate amount of the L/C Obligations as of
such date, including as a result of any reimbursements by the Borrower of
Unreimbursed Amounts.

 

“Overnight Rate” means, for any day,
(a) with respect to any amount denominated in Dollars, the greater of (i) the
Federal Funds Rate and (ii) an overnight rate determined by the Administrative
Agent, the L/C Issuer, or the Swing Line Lender, as the case may be, in
accordance with banking industry rules on interbank compensation, and (b) with
respect to any amount denominated in an Alternative Currency, the rate of
interest per annum at which overnight deposits in the applicable Alternative
Currency, in an amount approximately equal to the amount with respect to which
such rate is being determined, would be offered for such day by a branch or
Affiliate of Bank of America in the applicable offshore interbank market for
such currency to major banks in such interbank market.

 

“Parent” means Dade Behring Holdings
Inc.

 

“Participant” has the meaning
specified in Section 10.06(d).

 

“Participating Member State” means
each state so described in any EMU Legislation.

 

“PBGC” means the Pension Benefit
Guaranty Corporation.

 

“Pension Plan” means any “employee
pension benefit plan” (as such term is defined in Section 3(2) of ERISA),
other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by the Borrower or any ERISA Affiliate or to which
the Borrower or any ERISA Affiliate contributes or has an obligation to
contribute, or in the case of a multiple employer or other plan described in Section 4064(a)
of ERISA, would reasonably be expected to incur any liability.

 

“Permitted Acquisition” means an
Acquisition by the Parent or any Subsidiary, provided that (a) the
capital stock, other equity interests, property, product line or segment of
business or division acquired in such Acquisition relates to a line of business
similar, related, ancillary or complementary to the business that the Borrower or
any Subsidiary is engaged in on the Closing Date (or any reasonable extensions
or expansions thereof); (b) in the case of an Acquisition of the capital
stock or other equity interests of another Person, (i) the board of
directors (or other comparable governing body) of such other Person shall have
duly approved such Acquisition and (ii) such Person shall become a direct or
indirect Subsidiary of the Parent or such Person shall be merged into, or
consolidated or combined with, the Parent or any Subsidiary in a transaction in
which the Parent or such Subsidiary, as the case may be, is the surviving
entity; (c) the representations and warranties made by the Borrower herein
shall be true and correct in all material respects at and as if made as of the
date of such Acquisition (prior to and after giving effect thereto) except to
the extent such representations and warranties expressly relate to an earlier
date (and in such case shall be true and correct in all material respects as of
such date), and no Default or Event of Default shall exist as of the date of
such Acquisition (prior to and after giving effect thereto); and (d) if the
aggregate consideration for any such Acquisition exceeds $50,000,000, the
Borrower shall have delivered to the Administrative Agent, not less than 10
days prior to the consummation of such Acquisition, a pro forma certificate
from a Responsible Officer demonstrating that, upon giving effect to such
Acquisition on a pro forma basis, the Borrower shall be in compliance with each
of the covenants set forth in Section 7.10.

 

“Permitted Lien” has the meaning
specified in Section 7.01.

 

19

 

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

 

“Plan” means any “employee benefit
plan” (as such term is defined in Section 3(3) of ERISA) maintained by the
Borrower or, with respect to any such plan that is subject to Section 412
of the Code or Title IV of ERISA, any ERISA Affiliate.

 

“Platform” has the meaning specified
in Section 6.02.

 

“Ratings Agencies” means S&P,
Moody’s and Fitch and “Ratings Agency” means any one of them.

 

“Real and Personal Property Collateral
Documents” means a collective reference to any security agreement, mortgage
instruments and any such other documents to be executed and delivered in
connection with the attachment and perfection of the Administrative Agent’s
security interests, for the benefit of the holders of the Obligations, in the
real and personal property of each Loan Party as required by Section 6.14.

 

“Real and Personal Property Collateral
Effective Date” means the first date of the public announcement upon which
two of the three Ratings Agencies reduce the Debt Rating to BB- or lower (or
the equivalent) and written notice to the Borrower by the Administrative Agent
of such change.

 

“Real and Personal Property Collateral
Release Date” means the first date (subsequent to any Real and Personal
Property Collateral Effective Date) of the public announcement upon which two
of the three Ratings Agencies increase the Debt Rating to higher than BB- (or
the equivalent).

 

“Register” has the meaning specified
in Section 10.06(c).

 

“Registered Public Accounting Firm” has
the meaning specified in the Securities Laws and shall be independent of the
Borrower as prescribed by the Securities Laws.

 

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

 

“Reportable Event” means any of the
events set forth in Section 4043(c) of ERISA, other than events for which
the 30 day notice period has been waived.

 

“Request for Credit Extension” means
(a) with respect to a Borrowing, a Committed Loan Notice, (b) with respect to
an L/C Credit Extension, a Letter of Credit Application, (c) with respect to a
Domestic Swing Line Loan, a Domestic Swing Line Loan Notice and (d) with
respect to a Foreign Swing Line Loan, a Foreign Swing Line Loan Notice.

 

“Required Lenders” means, as of any
date of determination, Lenders having more than 50% of the Aggregate
Commitments or, if the commitment of each Lender to make Loans and the
obligation of the L/C Issuer to make L/C Credit Extensions have been terminated
pursuant to Section 8.02, Lenders holding in the aggregate more
than 50% of the Total Outstandings (with the aggregate amount of each Lender’s
risk participation and funded participation in L/C Obligations and Swing Line
Loans being deemed “held” by such Lender for purposes of this definition); provided
that the Commitment of, and the portion of the Total Outstandings held or
deemed held by, any Defaulting Lender shall be excluded for purposes of making
a determination of Required Lenders.

 

20

 

“Responsible Officer” means (a) the
chief executive officer, president, chief financial officer, vice president,
general counsel, treasurer or assistant treasurer of a Loan Party and (b) for
purposes of Committed Loan Notices under Section 2.02(a), Letter of
Credit Applications under Section 2.03(b)(i), Domestic Swing Line
Notices under Section 2.04(b) and Foreign Swing Line Notices under Section 2.05(b)
only, such other Persons as may be designated in writing by the Borrower from
time to time, so long as (i) such Person shall hold an office with the Borrower
acceptable to the Administrative Agent and (ii) the Administrative Agent shall
have received an incumbency certificate evidencing the identity, authority and
capacity of such Person.  Any document
delivered hereunder that is signed by a Responsible Officer of a Loan Party
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf
of such Loan Party in such person’s capacity as an officer of the relevant Loan
Party.

 

“Restricted Payment” means any
dividend or other distribution (whether in cash, securities or other property)
with respect to any capital stock or other Equity Interest of the Borrower or
any Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any such
capital stock or other Equity Interest, or on account of any return of capital
to the Borrower’s stockholders, partners or members (or the equivalent Person
thereof).

 

“Revaluation Date” means (a) with
respect to any Loan, each of the following: 
(i) each date of a Borrowing of a Eurocurrency Rate Loan denominated in
an Alternative Currency, (ii) each date of a continuation of a Eurocurrency
Rate Loan denominated in an Alternative Currency pursuant to Section 2.02,
(iii) each date of a Borrowing of a Foreign Swing Line Loan and (iv) such
additional dates as the Administrative Agent shall determine or the Required
Lenders shall require; and (b) with respect to any Letter of Credit, each of
the following:  (i) each date of issuance
of a Letter of Credit denominated in an Alternative Currency, (ii) each date of
an amendment of any such Letter of Credit having the effect of increasing the
amount thereof (solely with respect to the increased amount), (iii) each date
of any payment by the L/C Issuer under any Letter of Credit denominated in an
Alternative Currency, and (iv) such additional dates as the Administrative
Agent or the L/C Issuer shall reasonably determine or the Required Lenders
shall require.

 

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

 

“Same Day Funds” means (a) with
respect to disbursements and payments in Dollars, immediately available funds,
and (b) with respect to disbursements and payments in an Alternative Currency,
same day or other funds as may be reasonably determined by the Administrative
Agent or the L/C Issuer, as the case may be, to be customary in the place of
disbursement or payment for the settlement of international banking
transactions in the relevant Alternative Currency.

 

“Sarbanes-Oxley” means the Sarbanes-Oxley
Act of 2002.

 

“SEC” means the Securities and
Exchange Commission, or any Governmental Authority succeeding to any of its
principal functions.

 

“Securities Laws” means the Securities
Act of 1933, the Securities Exchange Act of 1934, Sarbanes-Oxley and the
applicable accounting and auditing principles, rules, standards and practices
promulgated, approved or incorporated by the SEC or the Public Company
Accounting Oversight Board, as each of the foregoing may be amended and in
effect on any applicable date hereunder.

 

21

 

“Securitization Transaction” means any
financing transaction or series of financing transactions pursuant to which the
Parent or any Subsidiary may sell, convey or otherwise transfer, or grant a
security interest in, accounts, payments, receivables, rights to future lease
payments or residuals or similar rights to payment to a special purpose
subsidiary or affiliate of any Person; provided that (a) the aggregate outstanding attributed principal amount of all
such financings shall not exceed $150,000,000 at any time outstanding
and (b) the term “Securitization
Transaction” shall specifically exclude (i) factoring arrangements, (ii)
any transaction pursuant to a Vendor Financing Program and (iii) any financing
transaction pursuant to which the Parent or any Subsidiary may sell, convey or
otherwise transfer, or grant a security interest in, rights to future lease
payments or residuals or similar rights to payment, arising out of any Vendor
Financing Program, to a special purpose subsidiary or Affiliate of any Person.

 

“Seeded Instrument Sale” shall mean
the sale, transfer or other disposition of seeded instruments of the Borrower
and/or one or more of its Subsidiaries to a financial institution.

 

“Seeded Instrument Transaction” shall
mean a transaction in which (i) one or more of the Borrower or its Subsidiaries
sells a seeded instrument to a financial institution, (ii) such financial
institution leases such instrument back to the Borrower or such Subsidiary and
(iii) the Borrower or such Subsidiary subleases such seeded instruments to
third party customers of the Borrower or such Subsidiary.

 

“Senior Subordinated Note Documents”
shall mean and include each of the documents and other agreements entered into
(including, without limitation, the Senior Subordinated Note Indenture) relating
to the issuance by the Borrower of the Senior Subordinated Notes, as in effect
on the Closing Date and as the same may be entered into, modified, supplemented
or amended from time to time pursuant to the terms hereof and thereof.

 

“Senior Subordinated Note Indenture”
shall mean the Indenture, dated October 3, 2002, entered into by and
between Holdings, the Borrower, various Subsidiaries of the Borrower and BNY
Midwest Trust Company, as trustee thereunder, as in effect on the Closing Date
and as the same may be modified, amended or supplemented from time to time in
accordance with the terms hereof and thereof.

 

“Senior Subordinated Notes” shall mean
the 11.91% Senior Subordinated Notes due 2010 issued in accordance with the
terms of the Senior Subordinated Note Indenture, as in effect on the Closing
Date and as the same may be modified, amended or supplemented from time to time
in accordance with the terms hereof and thereof.

 

“Short-Term Yen Prime Rate” means the
current rate appearing on the JPSPR= Page of Reuters.

 

“SPC” has the meaning specified in Section 10.06(h).

 

“Special Notice Currency” means at any
time an Alternative Currency, other than the currency of a country that is a
member of the Organization for Economic Cooperation and Development at such
time located in North America or Europe.

 

“Special Purpose Subsidiary” shall
mean a special purpose bankruptcy remote Subsidiary of the Borrower created in
connection with the Vendor Financing Program or a Securitization Transaction.

 

“Spot Rate” for a currency means the
rate reasonably determined by the Administrative Agent, the Foreign Swing Line
Lender or the L/C Issuer, as applicable, to be the rate quoted by the Person
acting in such capacity as the spot rate for the purchase by such Person of
such currency with another currency through its principal foreign exchange
trading office at approximately 11:00 a.m. 
on the date two

 

22

 

Business Days prior to the date as of which the foreign exchange
computation is made; provided that the
Administrative Agent, the Foreign Swing Line Lender or the L/C Issuer may
obtain such spot rate from another financial institution designated by the
Administrative Agent, the Foreign Swing Line Lender or the L/C Issuer if the original
Person acting in such capacity does not have as of the date of determination a
spot buying rate for any such currency; and provided  further that
the L/C Issuer may use such spot rate quoted on the date as of which the
foreign exchange computation is made in the case of any Letter of Credit
denominated in an Alternative Currency.

 

“Subsidiary” of a Person means a
corporation, partnership, joint venture, limited liability company or other
business entity (including a business entity as defined in Treasury Regulation
301.7701-2(a)) of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other
governing body (other than securities or interests having such power only by
reason of the happening of a contingency) are at the time beneficially owned,
or the management of which is otherwise controlled, directly, or indirectly
through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references
herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or
Subsidiaries of the Borrower.

 

“Subsidiary Guarantors” means each Person identified as a “Guarantor” on the
signature pages hereto and each other Person that joins as a Guarantor pursuant
to Section 6.12, together with their successors and permitted
assigns.

 

“Swap Contract” means any and all rate
swap transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts,
equity or equity index swaps or options, bond or bond price or bond index swaps
or options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap transactions, currency options, spot
contracts, or any other similar transactions or any combination of any of the
foregoing (including any options to enter into any of the foregoing), whether
or not any such transaction is governed by or subject to any master agreement.

 

“Swap Termination Value” means, in
respect of any one or more Swap Contracts, after taking into account the effect
of any legally enforceable netting agreement relating to such Swap Contracts,
(a) for any date on or after the date such Swap Contracts have been closed out
and termination value(s) determined in accordance therewith, such termination
value(s), and (b) for any date prior to the date referenced in clause (a),
the amount(s) determined as the mark-to-market value(s) for such Swap
Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts
(which may include a Lender or any Affiliate of a Lender).

 

“Swing Line” means the revolving
credit facility made available by the Domestic Swing Line Lender pursuant to Section 2.04
and the revolving credit facility made available by the Foreign Swing Line
Lender pursuant to Section 2.05

 

“Swing Line Borrowing” means a
borrowing of a Domestic Swing Line Loan pursuant to Section 2.04
and a borrowing of a Foreign Swing Line Loan pursuant to Section 2.05.

 

“Swing Line Lender” means the Domestic
Swing Line Lender or the Foreign Swing Line Lender, as appropriate.

 

“Swing Line Loan” means Domestic Swing
Line Loans and Foreign Swing Line Loans, as appropriate.

 

23

 

“Synthetic Lease Obligation” means the
monetary obligation of a Person under a so-called synthetic, off-balance sheet
or tax retention lease.

 

“TARGET Day” means any day on which the Trans-European
Automated Real-time Gross Settlement Express Transfer (TARGET) payment system
(or, if such payment system ceases to be operative, such other payment system
(if any) reasonably determined by the Administrative Agent to be a
suitable replacement) is open for the settlement of payments in Euro.

 

“Taxes” means all present or future taxes,
levies, imposts, duties, deductions, withholdings, assessments, fees or other
charges imposed by any Governmental Authority, including any interest,
additions to tax or penalties applicable thereto.

 

“Threshold Amount” means $40,000,000.

 

“Total Outstandings” means the aggregate
Outstanding Amount of all Loans and all L/C Obligations.

 

“Type” means, with respect to a Committed
Loan, its character as a Base Rate Loan or a Eurocurrency Rate Loan.

 

“Unfunded Pension Liability” means the excess
of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s
assets, determined in accordance with the assumptions used for funding the
Pension Plan pursuant to Section 412 of the Code for the applicable plan
year.

 

“United States” and “U.S.” mean the
United States of America.

 

“Unreimbursed Amount” has the meaning
specified in Section 2.03(c)(i).

 

“Vendor Financing Program” shall mean one or
more vendor financial services programs between the Borrower and/or one or more
of its Subsidiaries (including, without limitation, a Special Purpose
Subsidiary) and a financial institution pursuant to or in connection with which
(a)(i) the Borrower and/or such Subsidiary leases instruments to third party
customers of the Borrower and/or such Subsidiary and (ii) the Borrower and/or
such Subsidiary sells or otherwise transfers the accounts receivable related to
the lease of the instrument (together with the instrument that is the subject
of the lease) to such financial institution, (b)(i) the Borrower and/or such
Subsidiary effects Seeded Instrument Sales or otherwise sells instruments and
the rights related thereto to such financial institution and (ii) such
financial institution leases or sells the instruments so acquired to third
party customers of the Borrower and/or such Subsidiary, (c)(i) the Borrower
and/or one of its operating Subsidiaries sells or otherwise transfers
instruments, accounts receivable related thereto and other accounts receivable related
to consumable products or services of the Borrower or such Subsidiary to a
Special Purpose Subsidiary, (ii) a Special Purpose Subsidiary effects Seeded
Instrument Sales or otherwise sells instruments and the rights related thereto
to a financial institution and (iii) such financial institution leases or sells
the instruments so acquired to third party customers of the Borrower or its
Subsidiaries, (d)(i) the Borrower and/or such Subsidiary effects Seeded
Instrument Sales or otherwise sells instruments and the rights related thereto
to such financial institution, (ii) the Borrower and/or such Subsidiary sells
or otherwise transfers accounts receivable related to consumable products or
services of the Borrower or such Subsidiary to a Special Purpose Subsidiary,
(iii) a Special Purpose Subsidiary sells some or all of such accounts
receivable to such financial institution and (iv) such financial institution
leases or sells the instruments so acquired to third party customers of the
Borrower or its Subsidiaries, (e) the Borrower and/or one or more

 

24

 

Subsidiaries
of the Borrower and a financial institution pursuant to which the Borrower
and/or such Subsidiary effects Seeded Instrument Transactions with such
financial institution and third party customers of the Borrower and/or such
Subsidiary and/or (f) any financing transaction pursuant to which the Parent or
any Subsidiary may sell, convey or otherwise transfer, or grant a security
interest in, rights to future lease payments or residuals or similar rights to
payment, arising out of a transaction described in clauses (a) – (e)
above, to a special purpose subsidiary or Affiliate of any Person.

 

“Wholly Owned”
means a Subsidiary of any Person, the Equity Interest of which is 100% owned
and controlled, directly or indirectly, by such Person (other than director’s
qualifying shares an/or other nominal amounts of shares required to be held
other than by such Person under applicable law.

 

“Yen” and “¥” mean the lawful currency
of Japan.

 

“Yen
Call Rate” means, for any day, the unsecured overnight call volume-weighted
average rate per annum on overnight funds announced at the close of business on
that day by the Tanshi Kyokai (Interbank Broker’s Association), or if not so
announced on that day, the average of the quotations of the overnight funds
call rate for such day of three Tanshi brokers selected by the Foreign Swing
Line Lender.

 

1.02                        Other Interpretive Provisions.  With reference to this Agreement and each other
Loan Document, unless otherwise specified herein or in such other Loan
Document:

 

(a)                                  The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation.”  The word “will” shall be construed to have the same meaning and
effect as the word “shall.” 
Unless the context requires otherwise, (i) any definition of or
reference to any agreement, instrument or other document (including any
Organization Document) shall be construed as referring to such agreement, instrument
or other document as from time to time amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein or in any other Loan Document), (ii) any
reference herein to any Person shall be construed to include such Person’s
successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,”
and words of similar import when used in any Loan Document, shall be construed
to refer to such Loan Document in its entirety and not to any particular
provision thereof, (iv) all references in a Loan Document to Articles,
Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, the Loan Document
in which such references appear, (v) any reference to any law shall include all
statutory and regulatory provisions consolidating, amending, replacing or
interpreting such law and any reference to any law or regulation shall, unless
otherwise specified, refer to such law or regulation as amended, modified or
supplemented from time to time, (vi) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights and (vii) the terms “knowledge”, “aware” or other
terms of similar import shall mean the actual knowledge of a Responsible
Officer of any of the Loan Parties.

 

(b)                                 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.”

 

25

 

(c)                                  Section headings herein and in the other
Loan Documents are included for convenience of reference only and shall not
affect the interpretation of this Agreement or any other Loan Document.

 

1.03                        Accounting
Terms.

 

(a)                                  Generally.  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, except as otherwise specifically
prescribed herein.

 

(b)                                 Changes in GAAP.  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 Borrower or
the Required Lenders shall so request, the Administrative Agent, the Required
Lenders and the Borrower 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 Borrower
shall provide to the Administrative Agent 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.

 

1.04                        Exchange Rates; Currency Equivalents.

 

(a)                                  The Administrative Agent, the Foreign Swing
Line Lender or the L/C Issuer, as applicable, shall determine the Spot Rates as
of each Revaluation Date to be used for calculating Dollar Equivalent amounts
of Credit Extensions and Outstanding Amounts denominated in Alternative
Currencies.  Such Spot Rates shall become
effective as of such Revaluation Date and shall be the Spot Rates employed in
converting any amounts between the applicable currencies until the next
Revaluation Date to occur.  Except for
purposes of financial statements delivered by Loan Parties hereunder or
calculating financial covenants hereunder or except as otherwise provided herein,
the applicable amount of any currency (other than Dollars) for purposes of the
Loan Documents shall be such Dollar Equivalent amount as so reasonably
determined by the Administrative Agent, the Foreign Swing Line Lender or the
L/C Issuer, as applicable.

 

(b)                                 Wherever in this Agreement in connection with
a Borrowing, conversion, continuation or prepayment of a Eurocurrency Rate Loan
or the issuance, amendment or extension of a Letter of Credit, an amount, such
as a required minimum or multiple amount, is expressed in Dollars, but such
Borrowing, Eurocurrency Rate Loan or Letter of Credit is denominated in an
Alternative Currency, such amount shall be the relevant Alternative Currency
Equivalent of such Dollar amount (rounded to the nearest unit of such Alternative
Currency, with 0.5 of a unit being rounded upward), as reasonably determined by
the Administrative Agent, the Foreign Swing Line Lender or the L/C Issuer, as
the case may be.

 

1.05                        Additional
Alternative Currencies.

 

(a)                                  The Borrower may from time to time request
that Eurocurrency Rate Loans be made, Foreign Swing Line Loans and/or Letters
of Credit be issued in a currency other than those specifically listed in the
definition of “Alternative Currency;” provided that such requested
currency is a lawful

 

26

 

currency (other than Dollars) that is readily available and freely transferable
and convertible into Dollars.  In the
case of any such request with respect to the making of Eurocurrency Rate Loans,
such request shall be subject to the approval of the Administrative Agent and
the Lenders; in the case of any such request with respect to the making of
Foreign Swing Line Loans, such request shall be subject to the approval of the
Administrative Agent and the Foreign Swing Line Lender; and in the case of any
such request with respect to the issuance of Letters of Credit, such request
shall be subject to the approval of the Administrative Agent, and the L/C
Issuer.

 

(b)                                 Any such request shall be made to the
Administrative Agent not later than 11:00 a.m., seven (7) Business Days
prior to the date of the desired Credit Extension (or such other time or date
as may be agreed by the Administrative Agent, and in the case of any such
request pertaining to Foreign Swing Line Loans, the Foreign Swing Line Lender
and, in the case of any such request pertaining to Letters of Credit, the L/C
Issuer, in its or their sole discretion). 
In the case of any such request pertaining to Eurocurrency Rate Loans,
the Administrative Agent shall promptly notify each Lender thereof; and in the
case of any such request pertaining to Letters of Credit, the Administrative
Agent shall promptly notify the L/C Issuer thereof; and in the case of any such
request pertaining to Foreign Swing Line Loans, the Administrative Agent shall
promptly notify the Foreign Swing Line Lender. 
Each Lender (in the case of any such request pertaining to Eurocurrency
Rate Loans) or the L/C Issuer (in the case of a request pertaining to Letters
of Credit) or the Foreign Swing Line Lender (in the case of a request
pertaining to Foreign Swing Line Loans) shall notify the Administrative Agent,
not later than 11:00 a.m., two (2) Business Days after receipt of such
request whether it consents, in its sole discretion, to the making of
Eurocurrency Rate Loans or the issuance of Letters of Credit or the making of
Foreign Swing Line Loans, as the case may be, in such requested currency.

 

(c)                                  Any failure by a Lender or the L/C Issuer or
the Foreign Swing Line Lender, as the case may be, to respond to such request
within the time period specified in the preceding sentence shall be deemed to
be a refusal by such Lender or the L/C Issuer or the Foreign Swing Line Lender,
as the case may be, to permit Eurocurrency Rate Loans to be made or Letters of
Credit to be issued or Foreign Swing Line Loans to be made in such requested
currency.  If the Administrative Agent
and all the Lenders consent to making Eurocurrency Rate Loans in such requested
currency, the Administrative Agent shall so notify the Borrower and such
currency shall thereupon be deemed for all purposes to be an Alternative
Currency hereunder for purposes of any Borrowings of Eurocurrency Rate Loans;
and if the Administrative Agent and the L/C Issuer consent to the issuance of
Letters of Credit in such requested currency, the Administrative Agent shall so
notify the Borrower and such currency shall thereupon be deemed for all
purposes to be an Alternative Currency hereunder for purposes of any Letter of
Credit issuances; and if the Administrative Agent and the Foreign Swing Line
Lender consent to making Foreign Swing Line Loans in such requested currency,
the Administrative Agent shall so notify the Borrower and such currency shall
thereupon be deemed for all purposes to be an Alternative Currency hereunder
for purposes of any Foreign Swing Line Borrowing of Foreign Swing Line Loans.

 

If the Administrative Agent shall fail to obtain
consent to any request for an additional currency under this Section 1.05,
the Administrative Agent shall promptly so notify the Borrower.

 

1.06                        Change
of Currency.

 

(a)                                  Each obligation of the Borrower to make a
payment denominated in the national currency unit of any member state of the
European Union that adopts the Euro as its lawful currency after the date
hereof shall be redenominated into Euro at the time of such adoption (in
accordance with the EMU Legislation). 
If, in relation to the currency of any such member state, the basis of
accrual of interest expressed in this Agreement in respect of that currency
shall be inconsistent with any convention or practice in the London interbank
market for the basis of accrual of interest in respect of the Euro, such

 

27

 

expressed
basis shall be replaced by such convention or practice with effect from the
date on which such member state adopts the Euro as its lawful currency; provided
that if any Borrowing in the currency of such member state is outstanding
immediately prior to such date, such replacement shall take effect, with
respect to such Borrowing, at the end of the then current Interest Period.

 

(b)                                 Each provision of this Agreement shall be
subject to such reasonable changes of construction as the Administrative Agent
may from time to time specify to be appropriate to reflect the adoption of the
Euro by any member state of the European Union and any relevant market
conventions or practices relating to the Euro.

 

(c)                                  Each provision of this Agreement also shall
be subject to such reasonable changes of construction as the Administrative
Agent may from time to time specify to be appropriate to reflect a change in
currency of any other country and any relevant market conventions or practices
relating to the change in currency.

 

1.07                        Times of Day.  Unless otherwise specified, all references
herein to times of day shall be references to Eastern time
(daylight or standard, as applicable).

 

1.08                        Letter of Credit Amounts.  Unless otherwise specified herein, the amount
of a Letter of Credit at any time shall be deemed to be the Dollar Equivalent
of the stated amount of such Letter of Credit in effect at such time; provided,
however, that with respect to any Letter of Credit that, by its terms or
the terms of any Issuer Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of
Credit shall be deemed to be the Dollar Equivalent of the maximum stated amount
of such Letter of Credit after giving effect to all such increases, whether or
not such maximum stated amount is in effect at such time.

 

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

 

2.01                        Committed Loans.  Subject to the terms and conditions set forth
herein, each Lender severally agrees to make loans (each such loan, a “Committed
Loan”) to the Borrower in Dollars or in one or more Alternative Currencies
from time to time, on any Business Day during the Availability Period, in an
aggregate amount not to exceed at any time outstanding the amount of such
Lender’s Commitment; provided, however, that after giving effect
to any Committed Borrowing, (i) the Total Outstandings shall not exceed
the Aggregate Commitments, (ii) the aggregate Outstanding Amount of the
Committed Loans of any Lender, plus such Lender’s Applicable Percentage
of the Outstanding Amount of all L/C Obligations, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall
not exceed such Lender’s Commitment and (iii) the aggregate Outstanding
Amount of all Loans and L/C Obligations denominated in Alternative Currencies
shall not exceed the Alternative Currency Sublimit.  Within the limits of each Lender’s
Commitment, and subject to the other terms and conditions hereof, the Borrower
may borrow under this Section 2.01, prepay under Section 2.06,
and reborrow under this Section 2.01.  Committed Loans may be Base Rate Loans or
Eurocurrency Rate Loans, as further provided herein.

 

2.02                        Borrowings, Conversions and Continuations of Committed Loans.

 

(a)                                  Each Committed Borrowing, each conversion of
Committed Loans from one Type to the other, and each continuation of
Eurocurrency Rate Loans shall be made upon the Borrower’s irrevocable (except
if the circumstances contemplated in Sections 3.02, 3.03 and 3.04
occur)  notice to the

 

28

 

Administrative Agent, which may be given by
telephone.  Each such notice must be received by the
Administrative Agent not later than 12:00 p.m.  (i) three Business Days prior to the
requested date of any Committed Borrowing of, conversion to or continuation of
Eurocurrency Rate Loans denominated in Dollars or of any conversion of
Eurocurrency Rate Loans denominated in Dollars to Base Rate Committed Loans,
(ii) three Business Days prior to the requested date of any Committed Borrowing
or continuation of Eurocurrency Rate Loans denominated in Alternative
Currencies (other than Yen and any Special Notice Currency), (iii) four
Business Days prior to the requested date of any Committed Borrowing or
continuation of Eurocurrency Rate Loans denominated in Yen, (iv) five
Business Days prior to the requested date of any Committed Borrowing or
continuation of Eurocurrency Rate Loans denominated in any Special Notice
Currency, and (v) on the requested date of any Committed Borrowing of Base
Rate Committed Loans.  Each telephonic
notice by the Borrower pursuant to this Section 2.02(a) must be
confirmed promptly by delivery to the Administrative Agent of a written
Committed Loan Notice, appropriately completed and signed by a Responsible
Officer of the Borrower.  Each Committed Borrowing of, conversion to or continuation of Eurocurrency
Rate Loans shall be in a principal amount of $5,000,000 or a whole multiple of
$500,000 in excess thereof.  Except as
provided in Sections 2.03(c),  2.04(c), and 2.05(c)
each Committed Borrowing of or conversion to Base Rate Committed Loans shall be
in a principal amount of $500,000 or a whole multiple of $100,000 in excess
thereof.  Each Committed Loan Notice
(whether telephonic or written) shall specify (i) whether the Borrower is
requesting a Committed Borrowing, a conversion of Committed Loans from one Type
to the other, or a continuation of Eurocurrency Rate Loans, (ii) the
requested date of the Committed Borrowing, conversion or continuation, as the
case may be (which shall be a Business Day), (iii) the principal amount of
Committed Loans to be borrowed, converted or continued, (iv) the Type of
Committed Loans to be borrowed or to which existing Committed Loans are to be
converted and (v) if applicable, the duration of the Interest Period with
respect thereto, (vi) the currency of the Committed Loans to be
borrowed.  If the Borrower fails to
specify a currency in a Committed Loan Notice requesting a Committed Borrowing,
then the Committed Loans so requested shall be made in Dollars.  If the Borrower fails to specify a Type of
Committed Loan in a Committed Loan Notice or if the Borrower fails to give a
timely notice requesting a conversion or continuation, then the applicable
Committed Loans shall be made as, or converted to, Eurocurrency Rate Loans with
a one month Interest Period; provided, however, that in the case
of a failure to timely request a continuation of Committed Loans denominated in
an Alternative Currency, such Loans shall be continued as Eurocurrency Rate
Loans in their original currency with an Interest Period of one month.  Any automatic conversion to Eurocurrency Rate
Loans with a one month Interest Period shall be effective as of the last day of
the Interest Period then in effect with respect to the applicable Eurocurrency
Rate Loans.  If the Borrower requests a
Committed Borrowing of, conversion to, or continuation of Eurocurrency Rate
Loans in any such Committed Loan Notice, but fails to specify an Interest
Period, it will be deemed to have specified an Interest Period of one
month.  No Committed Loan may be
converted into or continued as a Committed Loan denominated in a different
currency, but instead must be prepaid in the original currency of such Committed
Loan and reborrowed in the other currency.

 

(b)                                 Following receipt of a Committed Loan Notice,
the Administrative Agent shall promptly notify each Lender of the amount (and
currency) of its Applicable Percentage of the applicable Committed Loans, and
if no timely notice of a conversion or continuation is provided by the
Borrower, the Administrative Agent shall notify each Lender of the details of
any automatic conversion to Base Rate Loans or continuation of Committed Loans
denominated in a currency other than Dollars, in each case as described in the
preceding subsection.  In the case of a
Committed Borrowing, each Lender shall make the amount of its Committed Loan
available to the Administrative Agent in Same Day Funds at the Administrative
Agent’s Office for the applicable currency not later than 1:00 p.m., in
the case of any Committed Loan denominated in Dollars, and not later than the
Applicable Time specified by the Administrative Agent in the case of any
Committed Loan in an Alternative Currency, in each case on the Business Day specified
in the applicable Committed Loan Notice. 
Upon satisfaction or waiver of the applicable conditions set forth in Section 4.02
(and, if such Borrowing is the initial Credit Extension,

 

29

 

Section 4.01), the Administrative Agent shall make all funds so received available
to the Borrower in like funds as received by the Administrative Agent either by
(i) crediting the account of the Borrower on the books of Bank of America
with the amount of such funds or (ii) wire transfer of such funds, in each
case in accordance with instructions provided to the Administrative Agent by
the Borrower; provided, however, that if, on the date the
Committed Loan Notice with respect to such Borrowing denominated in Dollars is
given by the Borrower, there are L/C Borrowings outstanding, then the proceeds
of such Borrowing, first, shall be applied to the payment in full of any
such L/C Borrowings, and, second, shall be made available to the
Borrower as provided above.

 

(c)                                  Except as otherwise provided herein, a
Eurocurrency Rate Loan may be continued or converted only on the last day of an
Interest Period for such Eurocurrency Rate Loan.  During the existence of a Default, no Loans
may be requested as, converted to or continued as Eurocurrency Rate Loans
(whether in Dollars or any Alternative Currency) other than for a one month
Interest Period without the consent of the Required Lenders, and the Required
Lenders may demand that any or all of the then outstanding Eurocurrency Rate Loans
denominated in an Alternative Currency be redenominated into Dollars in the
amount of the Dollar Equivalent thereof, on the last day of the then current
Interest Period with respect thereto.

 

(d)                                 The Administrative Agent shall promptly
notify the Borrower and the Lenders of the interest rate applicable to any
Interest Period for Eurocurrency Rate Loans upon determination of such interest
rate.  At any time that Base Rate Loans
are outstanding, the Administrative Agent shall notify the Borrower and the Lenders
of any change in Bank of America’s prime rate used in determining the Base Rate
promptly following the public announcement of such change.

 

(e)                                  After giving effect to all Committed
Borrowings, all conversions of Committed Loans from one Type to the other, and
all continuations of Committed Loans as the same Type, there shall not be more
than ten (10) Interest Periods in effect with respect to Committed Loans at any
time.

 

2.03                        Letters
of Credit.

 

(a)                                  The Letter of Credit Commitment.

 

(i)                                     Subject to the terms and conditions set forth
herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the
Lenders set forth in this Section 2.03, (1) from time to time
on any Business Day during the period from the Closing Date until the Letter of
Credit Expiration Date, to issue Letters of Credit denominated in Dollars or in
one or more Alternative Currencies for the account of the Borrower or its
Subsidiaries, and to amend or extend Letters of Credit previously issued by it,
in accordance with subsection (b) below, and (2) to honor drawings under
the Letters of Credit; and (B) the Lenders severally agree to participate
in Letters of Credit issued for the account of the Borrower or its Subsidiaries
and any drawings thereunder; provided that after giving effect to any
L/C Credit Extension with respect to any Letter of Credit, (x) the Total
Outstandings shall not exceed the Aggregate Commitments, (y) the Outstanding
Amount of all L/C Obligations shall not exceed the Letter of Credit Sublimit
and (z) the aggregate Outstanding Amount of the Committed Loans of any
Lender, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all L/C Obligations, plus such Lender’s Applicable Percentage
of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s
Commitment.  Each request by the Borrower
for the issuance or amendment of a Letter of Credit shall be deemed to be a
representation by the Borrower that the L/C Credit Extension so requested
complies (or such conditions have been waived) with the conditions set forth in
the proviso to the preceding sentence. 
Within the foregoing limits, and subject to the terms and conditions
hereof, the Borrower’s ability to obtain Letters of Credit shall be fully
revolving, and accordingly the

 

30

 

Borrower may, during the foregoing period, obtain
Letters of Credit to replace Letters of Credit that have expired or that have
been drawn upon and reimbursed.

 

(ii)                                  The L/C Issuer shall not issue any Letter of Credit,
if the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date, unless all the Lenders have approved such
expiry date.

 

(iii)                               The L/C Issuer shall not be under any
obligation to issue any Letter of Credit if:

 

(A)                              any order, judgment or decree of any
Governmental Authority or arbitrator shall by its terms purport to enjoin or
restrain the L/C Issuer from issuing such Letter of Credit, or any Law to the
L/C Issuer or any request or directive (whether or not having the force of law)
from any Governmental Authority with jurisdiction over the L/C Issuer shall
prohibit, or request that the L/C Issuer refrain from, the issuance of letters
of credit generally or such Letter of Credit in particular or shall impose upon
the L/C Issuer with respect to such Letter of Credit any restriction, reserve
or capital requirement (for which the L/C Issuer is not otherwise compensated
hereunder) not in effect on the Closing Date, or shall impose upon the L/C
Issuer any unreimbursed loss, cost or expense which was not applicable on the
Closing Date and which the applicable L/C Issuer in good faith deems material
to it;

 

(B)                                the issuance of such Letter of Credit would
violate one or more policies of the applicable L/C Issuer; or

 

(C)                                except as otherwise agreed by the
Administrative Agent and the applicable L/C Issuer, such Letter of Credit is to
be denominated in a currency other than Dollars or an Alternative Currency.

 

(iv)                              The L/C Issuer shall be under no obligation
to amend any Letter of Credit if (A) the L/C Issuer would have no obligation at
such time to issue such Letter of Credit in its amended form under the terms
hereof, or (B) the beneficiary of such Letter of Credit does not accept the
proposed amendment to such Letter of Credit.

 

(v)                                 The L/C Issuer shall act on behalf of the
Lenders with respect to any Letters of Credit issued by it and the documents
associated therewith, and the L/C Issuer shall have all of the benefits and
immunities (A) provided to the Administrative Agent in Article X
with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it
and Issuer Documents pertaining to such Letters of Credit as fully as if the
term “Administrative Agent” as used in Article X included the L/C
Issuer with respect to such acts or omissions, and (B) as additionally provided
herein with respect to the L/C Issuer.

 

(b)                                 Procedures for Issuance and Amendment of
Letters of Credit; Auto-Extension Letters of Credit.

 

(i)                                     Each Letter of Credit shall be issued or
amended, as the case may be, upon the request of the Borrower delivered to the
L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of
Credit Application, appropriately completed and signed by a Responsible Officer
of the Borrower.  Such Letter of Credit
Application must be received by the L/C Issuer and the Administrative Agent not
later than 1:00 p.m. at least two Business Days (or such later date and
time as the Administrative Agent and the L/C Issuer may agree in a particular
instance in

 

31

 

their reasonable discretion) prior to the proposed
issuance date or date of amendment, as the case may be.  In the case of a request for an initial
issuance of a Letter of Credit, such Letter of Credit Application shall specify
in form and detail reasonably satisfactory to the L/C Issuer: (A) the
proposed issuance date of the requested Letter of Credit (which shall be a Business
Day); (B) the amount and requested currency thereof and in the absence of
specification of currency shall be deemed a request for a Letter of Credit
denominated in Dollars; (C) the expiry date thereof; (D) the name and
address of the beneficiary thereof; (E) the documents to be presented by
such beneficiary in case of any drawing thereunder; (F) the full text of
any certificate to be presented by such beneficiary in case of any drawing
thereunder; and (G) such other matters as the L/C Issuer may reasonably require.  In the case of a request for an amendment of
any outstanding Letter of Credit, such Letter of Credit Application shall
specify in form and detail reasonably satisfactory to the L/C Issuer
(A) the Letter of Credit to be amended; (B) the proposed date of
amendment thereof (which shall be a Business Day); (C) the nature of the
proposed amendment; and (D) such other matters as the L/C Issuer may
reasonably require.  Additionally, the
Borrower shall furnish to the L/C Issuer and the Administrative Agent such
other documents and information pertaining to such requested Letter of Credit
issuance or amendment, including any Issuer Documents, as the L/C Issuer or the
Administrative Agent may reasonably require.

 

(ii)                                  Promptly after receipt of any Letter of Credit
Application, the L/C Issuer will confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has received a copy of
such Letter of Credit Application from the Borrower and, if not, the L/C Issuer
will provide the Administrative Agent with a copy thereof and inform the
Administrative Agent whether such Letter of Credit Application is for a standby
Letter of Credit.  Unless the L/C Issuer
has received written notice from any Lender, the Administrative Agent or any Loan
Party, at least one Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable
conditions contained in Section 4.02 shall not then be satisfied,
then, subject to the terms and conditions hereof, the applicable L/C Issuer
shall, on the requested date, issue a Letter of Credit for the account of the
Borrower or the applicable Subsidiary or enter into the applicable amendment,
as the case may be, in each case in accordance with the applicable L/C Issuer’s
usual and customary business practices. 
Immediately upon the issuance of each Letter of Credit, each Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the applicable L/C Issuer a risk participation in such Letter of
Credit in an amount equal to the product of such Lender’s Applicable Percentage
times the amount of such Letter of Credit.

 

(iii)                               If the Borrower so requests in any applicable
Letter of Credit Application, the L/C Issuer may, in its reasonable discretion,
agree to issue a Letter of Credit that has automatic extension provisions
(each, an “Auto-Extension Letter of Credit”); provided that any
such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any
such extension at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “Non-Extension Notice Date”)
in each such twelve-month period to be agreed upon at the time such Letter of
Credit is issued.  Unless otherwise
directed by the L/C Issuer, the Borrower shall not be required to make a
specific request to the L/C Issuer for any such extension.  Once an Auto-Extension Letter of Credit has
been issued, the Lenders shall be deemed to have authorized (but may not
require) the L/C Issuer to permit the extension of such Letter of Credit at any
time to an expiry date not later than the Letter of Credit Expiration Date; provided,
however, that the L/C Issuer shall not permit any such extension if
(A) the L/C Issuer has determined that it would not be permitted, or would
have no obligation, at such time to issue such Letter of Credit in its revised
form (as extended) under the terms hereof (by reason of the provisions of
clause (ii) or (iii) of Section 2.03(a) or otherwise), or
(B) it has received notice (which may be by telephone or in

 

32

 

writing) on or before the day that is ten Business
Days before the Non-Extension Notice Date from the Administrative Agent,
any Lender or the Borrower that one or more of the applicable conditions
specified in Section 4.02 is not then satisfied or waived, and in
each such case directing the applicable L/C Issuer not to permit such
extension.

 

(iv)                              Promptly after its delivery of any Letter of Credit or any amendment to a
Letter of Credit to an advising bank with respect thereto or to the beneficiary
thereof, the applicable L/C Issuer will also deliver to the Borrower and the Administrative
Agent a true and complete copy of such Letter of Credit or amendment.

 

(c)                                  Drawings and Reimbursements; Funding of
Participations.

 

(i)                                     Upon receipt from the beneficiary of any
Letter of Credit of any notice of a drawing under such Letter of Credit, the
L/C Issuer shall notify the Borrower and the Administrative Agent thereof,
including, in the case of a Letter of Credit denominated in an Alternative
Currency, both the Alternative Currency amount of such drawing and the
estimated Dollar Equivalent thereof.  In
the case of a Letter of Credit denominated in an Alternative Currency, the
Borrower shall reimburse the L/C Issuer in Dollars in the Dollar Equivalent of
the amount of the applicable drawing in such Alternative Currency as so
notified by the L/C Issuer; provided, that, with respect to any
reimbursement obligations of the Borrower arising from the presentment to the
L/C Issuer of a draft under a Letter of Credit denominated in an Alternative
Currency, the Borrower may make payment in the applicable Alternative Currency
if such payment is received by the L/C Issuer on the date such draft is paid by
the L/C Issuer.  Not later than 3:00 p.m.
on the date of any payment by the L/C Issuer under a Letter of Credit if the
L/C Issuer delivers notice of such payment by 11:00 a.m. on such day (or, if
notice of such payment by the L/C Issuer is delivered after 11:00 a.m., not
later than 10:00 a.m. the next succeeding Business Day) (each such date, an “Honor
Date”), the Borrower shall reimburse the L/C Issuer in an amount equal to
the amount of such drawing.  If the
Borrower fails to so reimburse the LC Issuer by the time set forth in the
preceding sentence, the L/C Issuer shall promptly notify the Administrative
Agent of the Honor Date and the amount of the unreimbursed drawing shall become
the unreimbursed amount (the “Unreimbursed Amount”).  The Administrative Agent shall promptly
notify each Lender of the Honor Date, the Unreimbursed Amount, and the amount
of such Lender’s Applicable Percentage thereof.  Any notice given by the L/C Issuer or the
Administrative Agent pursuant to this Section 2.03(c)(i) may be
given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice.

 

(ii)                                  Each Lender shall upon any notice pursuant to
Section 2.03(c)(i) make funds available to
the Administrative Agent for the account of the L/C Issuer, in Dollars, at the
Administrative Agent’s Office in an amount equal to its Applicable Percentage
of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day
specified in such notice by the Administrative Agent.  The Administrative Agent shall remit the
funds so received to the L/C Issuer in Dollars.

 

(iii)                               Any Unreimbursed Amount shall be due and
payable on demand and shall bear interest at the rate applicable to Base Rate
Loans from the Honor Date to the date of reimbursement is required pursuant to Section 2.03(c)(i).  Each Lender’s payment to the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its
participation in such Unreimbursed Amount and shall constitute an L/C Advance
from such Lender in satisfaction of its participation obligation under this Section 2.03.

 

33

 

(iv)                              Until each Lender funds its L/C Advance pursuant to this Section 2.03(c)
to reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Applicable Percentage of such amount shall
be solely for the account of the L/C Issuer.

 

(v)                                 Each Lender’s obligation to make L/C Advances
to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as
contemplated by this Section 2.03(c), shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which such Lender may
have against the L/C Issuer, the Borrower, any Subsidiary or any other Person
for any reason whatsoever; (B) the occurrence or continuance of a Default, or
(C) any other occurrence, event or condition, whether or not similar to any of
the foregoing.  No such making of an L/C
Advance shall relieve or otherwise impair the obligation of the Borrower to
reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer
under any Letter of Credit, together with interest as provided herein.

 

(vi)                              If any Lender fails to make available to the
Administrative Agent for the account of the L/C Issuer any amount required to
be paid by such Lender pursuant to the foregoing provisions of this Section 2.03(c)
by the time specified in Section 2.03(c)(ii), the L/C Issuer shall
be entitled to recover from such Lender (acting through the Administrative
Agent), on demand, such amount with interest thereon for the period from the
date such payment is required to the date on which such payment is immediately
available to the L/C Issuer at a rate per annum equal to the applicable Overnight
Rate from time to time in effect.  A
certificate of the L/C Issuer submitted to any Lender (through the
Administrative Agent) with respect to any amounts owing under this
clause (vi) shall be conclusive absent manifest
error.

 

(d)                                 Repayment of Participations.

 

(i)                                     At any time after the L/C Issuer has made a
payment under any Letter of Credit and has received from any Lender such Lender’s
L/C Advance in respect of such payment in accordance with Section 2.03(c),
if the Administrative Agent receives for the account of the L/C Issuer any
payment in respect of the related Unreimbursed Amount or interest thereon
(whether directly from the Borrower or otherwise, including proceeds of Cash
Collateral applied thereto by the Administrative Agent), the Administrative
Agent will distribute to such Lender its Applicable Percentage thereof
(appropriately adjusted, in the case of interest payments, to reflect the
period of time during which such Lender’s L/C Advance was outstanding) in the
same funds as those received by the Administrative Agent.

 

(ii)                                  If any payment received by the L/C Issuer
pursuant to Section 2.03(c)(i) is required to be returned under any
of the circumstances described in Section 10.05 (including pursuant
to any settlement entered into by the L/C Issuer in its discretion), each
Lender shall pay to the Administrative Agent for the account of the L/C Issuer
its Applicable Percentage thereof on demand of the Administrative Agent (on
behalf of the L/C Issuer), plus interest thereon from the date of such demand
to the date such amount is returned by such Lender, at a rate per annum equal
to the Federal Funds Rate from time to time in effect.  The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination
of this Agreement.

 

34

 

(e)                                  Obligations Absolute.

 

(i)                                     The obligation of the Borrower to
reimburse the L/C Issuer for each drawing under each Letter of Credit and to
repay each Unreimbursed Amount shall be absolute and unconditional under any
and all circumstances and irrespective of any set-off, counterclaim or defense
to payment which the Borrower may have or have had against the L/C Issuer, any
Lender or any beneficiary of a Letter of Credit.

 

(ii)                                  The Borrower also agrees with the L/C
Issuers that the L/C Issuers, the Administrative Agent and their respective
Related Parties shall not be responsible for, and the Borrower’s obligation to
reimburse the L/C Issuer for each drawing under each Letter of Credit and to
repay each Unreimbursed Amount shall not be affected by, among other things,
(i) the validity or genuineness of documents or of any endorsements thereon (or
any other instrument transferring or assigning such Letter of Credit), even though
such documents shall in fact prove to be invalid, fraudulent or forged (unless
the L/C Issuer has actual knowledge of such invalidity, fraud or forgery), (ii)
any dispute between or among the Borrower and any beneficiary of any Letter of
Credit or any other party to which such Letter of Credit may be transferred, or
(iii) any claims whatsoever of the Borrower against any beneficiary of such
Letter of Credit or any such transferee.

 

(iii)                               Neither the L/C Issuer, nor any Lender,
nor, the Administrative Agent and their respective Related Parties shall be
liable for any error, omission, interruption or delay in transmission, dispatch
or delivery of any message or advice, however transmitted, in connection with
any Letter of Credit, except for errors or omissions caused by the L/C Issuer’s
bad faith, gross negligence or willful misconduct.

 

(iv)                              The Borrower agrees that any action taken
or omitted by the L/C Issuer under or in connection with any Letter of Credit
or the related drafts or documents, if done in the absence of bad faith, gross
negligence or willful misconduct and in accordance with the standards of care
specified in the Uniform Commercial Code of the State of New York, shall be
binding on the Borrower and shall not result in any liability of the L/C
Issuer, the Administrative Agent, any Lender or any of their respective Related
Parties to the Borrower.

 

(v)                                 If any draft shall be presented for
payment under any Letter of Credit, the responsibility of the L/C Issuer to the
Borrower in connection with such draft shall, in addition to any payment
obligation expressly provided for in such Letter of Credit, be limited to
determining that the documents (including each draft) delivered under such
Letter of Credit in connection with such presentment appear on their face to be
in conformity with such Letter of Credit.

 

The Borrower shall
promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to it and, in the event of any claim of noncompliance with
the Borrower’s instructions or other irregularity, the Borrower will promptly
notify the L/C Issuer.  The Borrower
shall be conclusively deemed to have waived any such claim against the L/C
Issuer and its correspondents unless such notice is given as aforesaid.

 

(f)                                    Role of L/C Issuer.  Each
Lender and the Borrower agree that, in paying any drawing under a Letter of
Credit, the L/C Issuer shall not have any responsibility to obtain any document
(other than any sight draft, certificates and documents expressly required by
the Letter of Credit) or ascertain or inquire as to the authority of the Person
executing or delivering any such document. 
None of the L/C Issuer, the Administrative Agent, any of their
respective Related Parties nor any correspondent, participant or assignee of the
L/C Issuer shall be liable to any Lender for (i) any action taken or
omitted in connection herewith at the request or with the approval of the
Lenders or the Required Lenders, as applicable; (ii) any action taken or
omitted in the absence of bad faith, gross negligence or willful

 

35

 

misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument related
to any Letter of Credit or Issuer Document. 
The Borrower hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not,
preclude the Borrower’s pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement.  Notwithstanding anything in clauses (i)
through (v) of Section 2.03(e) to the contrary, the Borrower may
have a claim against the L/C Issuer, and the L/C Issuer may be liable to the
Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Borrower which were caused
by the L/C Issuer’s bad faith, willful misconduct or gross negligence or
payment not in compliance with the terms and conditions of a Letter or Credit
or the L/C Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit.

 

(g)                                 Cash Collateral.

 

(i)                                     Upon the written request of the
Administrative Agent, (A) if the L/C Issuer has honored any full or
partial drawing request under any Letter of Credit and such drawing has resulted
in an Unreimbursed Amount, or (B) if, as of the Letter of Credit
Expiration Date, any L/C Obligation for any reason remains outstanding, the
Borrower shall, in each case, within two Business Days of the occurrence of any
event in (A) or (B) above, Cash Collateralize the then Outstanding Amount of
all L/C Obligations.

 

(ii)                                  In addition, if the Administrative Agent
notifies the Borrower at any time that the Outstanding Amount of all L/C
Obligations at such time exceeds 102% of the Aggregate Commitments then in
effect, then, within two Business Days after receipt of such notice, the
Borrower shall Cash Collateralize the L/C Obligations in an amount equal to the
amount by which the Outstanding Amount of all L/C Obligations exceeds the
Aggregate Commitments then in effect.

 

(iii)                               Sections 2.06(c) and 9.02(c) set forth certain
additional requirements to deliver Cash Collateral hereunder.  For purposes of this Section 2.03(g),
Section 2.06(c) and Section 8.02(c), “Cash
Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as
collateral for the L/C Obligations, cash or deposit account balances pursuant
to documentation in form and substance reasonably satisfactory to the Administrative
Agent (which documents are hereby consented to by the Lenders).  Derivatives of such term have corresponding
meanings.  The Borrower hereby grants to
the Administrative Agent, for the benefit of the L/C Issuer and the Lenders, a
security interest in all such cash, deposit accounts and all balances therein
and all proceeds of the foregoing.  Cash
Collateral shall be maintained in blocked deposit accounts at Bank of America.

 

(h)                                 Applicability of ISP or UCP.  Unless otherwise expressly agreed
by the L/C Issuer and the Borrower when a standby Letter of Credit is
issued, the rules of the ISP shall apply to such Letter of Credit, and
when a commercial Letter of Credit is issued, the rules of the UCP shall apply
to such commercial Letter of Credit and, in either case, to the extent not
inconsistent therewith and if requested by the Borrower in the applicable
Letter of Credit Application, the laws of the State of New York.

 

(i)                                     Letter of Credit Fees.  The
Borrower shall pay to the Administrative Agent for the account of each Lender
(other than a Defaulting Lender) in accordance with its Applicable Percentage a
Letter of Credit fee (the “Letter of Credit Fee”) for
each Letter of Credit equal to the Applicable Rate times the daily
amount available to be drawn under such Letter of Credit.  For purposes of computing the daily amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall

 

36

 

be determined in accordance with Section 1.08.  Letter of Credit Fees shall be
(i) computed on a quarterly basis in arrears and (ii) due and payable
on the last Business Day of each March, June, September and December,
commencing with the first such date to occur after the issuance of such Letter of
Credit, on the Letter of Credit Expiration Date and thereafter on written
demand.  If there is any change in the
Applicable Rate during any quarter, the daily amount available to be drawn
under each Letter of Credit shall be computed and multiplied by the Applicable
Rate separately for each period during such quarter that such Applicable Rate
was in effect.

 

(j)                                     Fronting Fee and Documentary and Processing
Charges Payable to L/C Issuer.  The Borrower shall pay directly to each L/C
Issuer for its own account a fronting fee with
respect to each Letter of Credit issued by such L/C Issuer, at a rate per
annum, in the case of Bank of America, in its capacity as L/C Issuer, specified
in the Fee Letter and in the case of any other L/C Issuer, as may be agreed upon
between the Borrower and such L/C Issuer, computed on the daily amount
available to be drawn under such Letter of Credit on a quarterly basis in
arrears.  Such fronting fee shall be due
and payable on the last Business Day of each March, June, September and December in
respect of the most recently-ended quarterly period (or portion thereof, in the
case of the first payment), commencing with the first such date to occur after
the issuance of such Letter of Credit, on the Letter of Credit Expiration Date
and thereafter on written demand.  For
purposes of computing the daily amount available to be drawn under any Letter
of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.08. 
In addition, the Borrower shall pay directly to each L/C Issuer for its
own account the customary issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of such L/C Issuer
relating to letters of credit disclosed to the Borrower and in effect from time
to time.  Such customary fees and
standard costs and charges are due and payable on written demand and are
nonrefundable.

 

(k)                                  Conflict with Issuer Documents.  In
the event of any conflict between the terms hereof and the terms of any Issuer
Document, the terms hereof shall control.

 

(l)                                     Letters of Credit Issued for Subsidiaries. 
Notwithstanding that a Letter of Credit issued or outstanding hereunder
is in support of any obligations of, or is for the account of, a Subsidiary,
the Borrower shall be obligated to reimburse the L/C Issuer hereunder for any
and all drawings under such Letter of Credit. 
The Borrower hereby acknowledges that the issuance of Letters of Credit
for the account of Subsidiaries inures to the benefit of the Borrower, and that
the Borrower’s business derives substantial benefits from the businesses of
such Subsidiaries.

 

(m)                               Determination of Exchange Rate.  On
each Revaluation Date with respect to each outstanding Letter of Credit
denominated in an Alternative Currency, the L/C Issuer shall reasonably
determine the Spot Rate as of such Revaluation Date with respect to the
applicable Alternative Currency and shall promptly notify the Administrative
Agent and the Borrower thereof and of the Dollar Equivalent of all Letters of
Credit denominated in such Alternative Currency outstanding on such Revaluation
Date.  The Spot Rate so reasonably
determined shall become effective on such Revaluation Date and shall remain
effective until the next succeeding Revaluation Date.

 

2.04                        Domestic
Swing Line Loans.

 

(a)                                  The Domestic Swing Line. 
Subject to the terms and conditions set forth herein, the Domestic Swing Line Lender agrees, in reliance upon the
agreements of the other Lenders set forth in this Section 2.04, to
make loans in Dollars (each such loan, a “Domestic Swing Line Loan”) to
the Borrower from time to time on any Business Day during the Availability
Period in an aggregate amount not to exceed at any time outstanding the amount
of the Domestic Swing Line Sublimit, notwithstanding the fact
that such Domestic Swing Line
Loans, when aggregated with the Applicable Percentage of the

 

37

 

Outstanding
Amount of Committed Loans, Foreign Swing Line Loans and L/C Obligations of the
Lender acting as Domestic Swing Line Lender, may exceed the
amount of such Lender’s Commitment; provided, however, that after
giving effect to any Domestic Swing Line Loan, (i) the Total
Outstandings shall not exceed the Aggregate Commitments, and (ii) the
aggregate Outstanding Amount of the Committed Loans of any Lender, plus
such Lender’s Applicable Percentage of the Outstanding Amount of all L/C
Obligations, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and provided,
further, that the Borrower shall not use the proceeds of any Domestic Swing Line Loan to refinance any outstanding
Domestic Swing Line Loan. 
Within the foregoing limits, and subject to the
other terms and conditions hereof, the Borrower may borrow under this Section 2.04,
prepay under Section 2.07, and reborrow under this Section 2.04.  Each Domestic Swing Line Loan shall be a Base Rate Loan.  Immediately upon the making of a Domestic Swing Line Loan, each Lender shall be deemed to,
and hereby irrevocably and unconditionally agrees to, purchase from the
Domestic Swing Line Lender a risk participation in such
Domestic Swing Line Loan in an amount equal to the product
of such Lender’s Applicable Percentage times the amount of such Domestic Swing Line Loan.

 

(b)                                 Borrowing Procedures.  Each
Domestic Swing Line Borrowing shall be made upon the
Borrower’s irrevocable notice to the Domestic Swing Line Lender and the
Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Domestic Swing Line Lender and the Administrative Agent
not later than 1:00 p.m.  on the
requested borrowing date, and shall specify (i) the amount to be borrowed,
which shall be a minimum of $100,000, and (ii) the requested borrowing date,
which shall be a Business Day.  Each such
telephonic notice must be confirmed promptly by delivery to the Domestic Swing Line Lender and the Administrative Agent of
a written Domestic Swing Line Loan Notice,
appropriately completed and signed by a Responsible Officer of the
Borrower.  Promptly after receipt by the
Domestic Swing Line Lender of any telephonic Domestic Swing Line Loan Notice, the Domestic Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has also received such Domestic Swing Line Loan Notice and, if not,
the Domestic Swing Line Lender will notify the Administrative
Agent (by telephone or in writing) of the contents thereof.  Unless the Domestic Swing Line Lender has received notice (by
telephone or in writing) from the Administrative Agent (including at the
request of any Lender) prior to 2:00 p.m.  on the date of the proposed Domestic Swing Line Borrowing (A) directing the Domestic Swing Line Lender not to make such Domestic Swing
Line Loan as a result of the limitations set forth in the proviso to the first
sentence of Section 2.04(a), or (B) that one or more of the
applicable conditions specified in Article IV is not then
satisfied, then, subject to the terms and conditions hereof, the Domestic Swing Line Lender will, not later than
3:00 p.m. on the borrowing date specified in such Domestic Swing Line Loan Notice, make the amount of its
Domestic Swing Line Loan available to the Borrower at its
office by crediting the account of the Borrower on the books of the Domestic Swing Line Lender in Same Day Funds.

 

(c)                                  Refinancing of Domestic Swing Line Loans.

 

(i)                                     The Domestic Swing Line Lender at any time in its sole and
absolute discretion may request, on behalf of the Borrower (which hereby
irrevocably authorizes the Domestic Swing Line Lender to so request on
its behalf), that each Lender make a Base Rate Committed Loan in an amount
equal to such Lender’s Applicable Percentage of the amount of Domestic Swing Line Loans then outstanding.  Such request shall be made in writing (which
written request shall be deemed to be a Committed Loan Notice for purposes
hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Loans, but subject to the unutilized portion of the
Aggregate Commitments.  The Domestic Swing Line Lender shall furnish the Borrower with
a copy of the applicable Committed Loan Notice promptly after delivering such
notice to the Administrative Agent.  Each
Lender shall make an amount equal to its Applicable Percentage of the amount

 

38

 

specified in such Committed Loan Notice available to
the Administrative Agent in Same Day Funds for the account of the Domestic Swing Line Lender at the Administrative Agent’s
Office for Dollar-denominated payments not later than 1:00 p.m.  on the day specified in such Committed Loan
Notice, whereupon, subject to Section 2.04(c)(ii), each Lender that
so makes funds available shall be deemed to have made a Base Rate Committed
Loan to the Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the Domestic Swing Line Lender.

 

(ii)                                  If for any reason any Domestic Swing Line Loan cannot be refinanced by such a
Committed Borrowing in accordance with Section 2.04(c)(i), the
request for Base Rate Committed Loans submitted by the Domestic Swing Line Lender as set forth herein shall be
deemed to be a request by the Domestic Swing Line Lender that each of the
Lenders fund its risk participation in the relevant Domestic Swing Line Loan and each Lender’s payment to the
Administrative Agent for the account of the Domestic Swing Line Lender pursuant to Section 2.04(c)(i)
shall be deemed payment in respect of such participation.

 

(iii)                               If any Lender fails to make available to the
Administrative Agent for the account of the Domestic Swing Line Lender any amount required to be paid
by such Lender pursuant to the foregoing provisions of this Section 2.04(c)
by the time specified in Section 2.04(c)(i), the Domestic Swing Line Lender shall be entitled to recover
from such Lender (acting through the Administrative Agent), on demand, such
amount with interest thereon for the period from the date such payment is
required to the date on which such payment is immediately available to the
Domestic Swing Line Lender at a rate per annum equal to
the applicable Overnight Rate from time to time in effect.  A certificate of the Domestic Swing Line Lender submitted to any Lender
(through the Administrative Agent) with respect to any amounts owing under this
clause (iii) shall be conclusive absent manifest error.

 

(iv)                              Each Lender’s obligation to make Committed
Loans or to purchase and fund risk participations in Domestic Swing Line Loans pursuant to this Section 2.04(c)
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or
other right which such Lender may have against the Domestic Swing Line Lender, the Borrower or any other
Person for any reason whatsoever, (B) the occurrence or continuance of a
Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing.  No such
funding of risk participations shall relieve or otherwise impair the obligation
of the Borrower to repay Domestic Swing Line Loans, together with
interest as provided herein.

 

(d)                                 Repayment of Participations.

 

(i)                                     At any time after any Lender has purchased
and funded a risk participation in a Domestic Swing Line Loan, if the Domestic
Swing Line Lender receives any payment on account of such Domestic Swing Line Loan, the Domestic Swing Line Lender will distribute to such Lender
its Applicable Percentage of such payment (appropriately adjusted, in the case
of interest payments, to reflect the period of time during which such Lender’s
risk participation was funded) in the same funds as those received by the
Domestic Swing Line Lender.

 

(ii)                                  If any payment received by the Domestic Swing Line Lender in respect of principal or
interest on any Domestic Swing Line Loan is required to be
returned by the Domestic Swing Line Lender under any of the
circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the Domestic Swing Line Lender in its
discretion), each Lender shall pay to the Domestic Swing Line Lender its Applicable Percentage
thereof on

 

39

 

demand of the Administrative Agent, plus interest
thereon from the date of such demand to the date such amount is returned, at a
rate per annum equal to the applicable Overnight Rate.  The Administrative Agent will make such
demand upon the request of the Domestic Swing Line Lender.  The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination
of this Agreement.

 

(e)                                  Interest for Account of Domestic Swing Line Lender.  The Domestic Swing Line Lender shall be responsible for
invoicing the Borrower for interest on the Domestic Swing Line Loans. 
Until each Lender funds its Base Rate Committed Loan or risk
participation pursuant to this Section 2.04 to refinance such
Lender’s Applicable Percentage of any Domestic Swing Line Loan, interest in respect of such
Applicable Percentage shall be solely for the account of the Domestic Swing Line Lender.

 

(f)                                    Payments Directly to Domestic Swing Line Lender.  The
Borrower shall make all payments of principal and interest in respect of the Domestic Swing Line Loans directly to the Domestic Swing Line Lender.

 

2.05                        Foreign
Swing Line Loans.

 

(a)                                  The Foreign Swing Line. 
Subject to the terms and conditions set forth herein, the Foreign Swing Line Lender agrees, in reliance upon the
agreements of the other Lenders set forth in this Section 2.05, to
make loans in Alternative Currencies (each such loan, a “Foreign Swing Line
Loan”) to the Borrower from time to time on any Business Day during the
Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of the Foreign Swing Line Sublimit, notwithstanding
the fact that such Foreign Swing
Line Loans, when aggregated with the Applicable Percentage of the Outstanding
Amount of Committed Loans, Domestic Swing Line Loans and L/C Obligations of the
Lender acting as Foreign Swing Line Lender, may exceed the
amount of such Lender’s Commitment; provided, however, that after
giving effect to any Foreign Swing Line Loan, (i) the Total
Outstandings shall not exceed the Aggregate Commitments, (ii) the aggregate
Outstanding Amount of Foreign Swing Line Loans, plus the aggregate
Outstanding Amount of all Committed Loans denominated in Alternative Currencies
plus the aggregate Outstanding Amount of all L/C Obligations denominated
in Alternative Currencies shall not exceed the Alternative Currency Sublimit
and (iii) the aggregate Outstanding Amount of the Committed Loans of any
Lender, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all L/C Obligations, plus such Lender’s Applicable Percentage
of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s
Commitment, and provided, further, that the Borrower shall not
use the proceeds of any Foreign Swing Line Loan to refinance any
outstanding Foreign Swing Line Loan.  Within the foregoing limits,
and subject to the other terms and conditions hereof, the Borrower may borrow
under this Section 2.05, prepay under Section 2.06, and
reborrow under this Section 2.05. 
Each Foreign Swing Line Loan shall be a comprised
solely of Foreign Swing Line Base Rate Loans. 
Immediately upon the making of a Foreign Swing Line Loan, each Lender shall be deemed to,
and hereby irrevocably and unconditionally agrees to, purchase from the Foreign Swing Line Lender a risk participation in such
Foreign Swing Line Loan in an amount equal to the product
of such Lender’s Applicable Percentage times the amount of such Foreign Swing Line Loan.

 

(b)                                 Borrowing Procedures.  Each
Foreign Swing Line Borrowing shall be made upon the Borrower’s
irrevocable notice to the Foreign Swing Line Lender and the
Administrative Agent, which may be given by telephone.  Each such notice must be received by the
Foreign Swing Line Lender and the Administrative Agent
not later than 11:00 a.m. one Business Day prior to the requested
borrowing date with respect to a Foreign Swing Line Borrowing in any Alternate
Currency, and shall specify (i) the currency, the amount to be borrowed (which
shall be a minimum of $100,000) and (ii) the requested borrowing date, which
shall be a Business Day.  Each such
telephonic notice must be confirmed promptly by delivery to the Foreign Swing Line Lender and the Administrative Agent of
a written Foreign Swing

 

40

 

Line
Loan Notice, appropriately completed and signed by a Responsible Officer of the
Borrower.  Promptly after receipt by the
Foreign Swing Line Lender of any telephonic Foreign Swing Line Loan Notice, the Foreign Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has also received such Foreign Swing Line Loan Notice and, if not,
the Foreign Swing Line Lender will notify the Administrative
Agent (by telephone or in writing) of the contents thereof.  Unless the Foreign Swing Line Lender has received notice (by
telephone or in writing) from the Administrative Agent (including at the
request of any Lender) prior to 10:00 a.m. (London time) on the date of
the proposed Foreign Swing Line Borrowing in any Alternate
Currency (other than Yen) and/or 10:00 a.m. (Tokyo time) on the date of
the proposed Foreign Swing Line Borrowing in Yen (A) directing the Foreign Swing Line Lender not to make such
Foreign Swing Line Loan as a result of the limitations set forth in the proviso
to the first sentence of Section 2.05(a), or (B) that one or more
of the applicable conditions specified in Article IV is not then
satisfied, then, subject to the terms and conditions hereof, the Foreign Swing Line Lender will, not later than
3:00 p.m. (London Time) and/or 3:00 p.m. (Tokyo time), as applicable, on
the borrowing date specified in such Foreign Swing Line Loan Notice, make the
amount of its Foreign Swing Line Loan available to the
Borrower at its office by crediting the account of the Borrower on the books of
the Foreign Swing Line Lender in Same Day Funds or by wire
transfer in immediately available funds.

 

(c)                                  Refinancing of Foreign Swing Line Loans.

 

(i)                                     The Foreign Swing Line Lender at any time in its
sole and absolute discretion may request, on behalf of the Borrower (which
hereby irrevocably authorizes the Foreign Swing Line Lender to so request on
its behalf), that each Lender make a Base Rate Committed Loan in an amount
equal to such Lender’s Applicable Percentage of the amount of Foreign Swing Line Loans then outstanding in the Dollar
Equivalent of such Alternative Currency. 
Such request shall be made in writing (which written request shall be
deemed to be a Committed Loan Notice for purposes hereof) and in accordance
with the requirements of Section 2.02, without regard to the
minimum and multiples specified therein for the principal amount of Base Rate
Loans, but subject to the unutilized portion of the Aggregate Commitments.  The Foreign Swing Line Lender shall furnish the
Borrower with a copy of the applicable Committed Loan Notice promptly after
delivering such notice to the Administrative Agent.  Each Lender shall make an amount equal to its
Applicable Percentage of the amount specified in such Committed Loan Notice available
to the Administrative Agent in Same Day Funds for the account of the Foreign Swing Line Lender at the Administrative Agent’s
Office for the applicable currency not later not later than 1:00 p.m.
(local time) on the day specified in such Committed Loan Notice, whereupon,
subject to Section 2.05(c)(ii), each Lender that so makes funds
available shall be deemed to have made a Base Rate Committed Loan to the
Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the Foreign Swing Line Lender.

 

(ii)                                  If for any reason any Foreign Swing Line Loan cannot be refinanced by such a
Committed Borrowing in accordance with Section 2.05(c)(i), the
request for Base Rate Committed Loans submitted by the Foreign Swing Line Lender as set forth herein shall be
deemed to be a request by the Foreign Swing Line Lender that each of the
Lenders fund its risk participation in the relevant Foreign Swing Line Loan and each Lender’s payment to the
Administrative Agent for the account of the Foreign Swing Line Lender pursuant to Section 2.05(c)(i)
shall be deemed payment in respect of such participation.

 

(iii)                               If any Lender fails to make available to the
Administrative Agent for the account of the Foreign Swing Line Lender any amount required to be paid
by such Lender pursuant to the foregoing provisions of this Section 2.05(c)
by the time specified in Section 2.05(c)(i),
the Foreign Swing Line Lender shall be entitled to recover
from such Lender (acting through the

 

41

 

Administrative Agent), on demand, such amount with
interest thereon for the period from the date such payment is required to the
date on which such payment is immediately available to the Foreign Swing Line Lender at a rate per annum equal to
the applicable Overnight Rate from time to time in effect.  A certificate of the Foreign Swing Line Lender submitted to any Lender
(through the Administrative Agent) with respect to any amounts owing under this
clause (iii) shall be conclusive absent manifest error.

 

(iv)                              Each Lender’s obligation to make Committed
Loans or to purchase and fund risk participations in Foreign Swing Line Loans pursuant to this Section 2.05(c)
shall be absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the Foreign Swing Line Lender, the Borrower or any other
Person for any reason whatsoever, (B) the occurrence or continuance of a
Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing.  No such
funding of risk participations shall relieve or otherwise impair the obligation
of the Borrower to repay Foreign Swing Line Loans, together with
interest as provided herein.

 

(d)                                 Repayment of Participations.

 

(i)                                     At any time after any Lender has purchased
and funded a risk participation in a Foreign Swing Line Loan, if the Foreign
Swing Line Lender receives any payment on account of such Foreign Swing Line Loan, the Foreign Swing Line Lender will distribute to such Lender
its Applicable Percentage of such payment (appropriately adjusted, in the case
of interest payments, to reflect the period of time during which such Lender’s
risk participation was funded) in the same funds as those received by the
Foreign Swing Line Lender.

 

(ii)                                  If any payment received by the Foreign Swing Line Lender in respect of principal or
interest on any Foreign Swing Line Loan is required to be
returned by the Foreign Swing Line Lender under any of the
circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the Foreign Swing Line Lender in its
discretion), each Lender shall pay to the Foreign Swing Line Lender its Applicable Percentage
thereof on demand of the Administrative Agent, plus interest thereon from the
date of such demand to the date such amount is returned, at a rate per annum
equal to the applicable Overnight Rate. 
The Administrative Agent will make such demand upon the request of the
Foreign Swing Line Lender.  The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination
of this Agreement.

 

(e)                                  Interest for Account of Foreign Swing Line Lender.  The
Foreign Swing Line Lender shall be responsible for
invoicing the Borrower for interest on the Foreign Swing Line Loans. 
Until each Lender funds its Base Rate Committed Loan or risk
participation pursuant to this Section 2.05 to refinance such
Lender’s Applicable Percentage of any Foreign Swing Line Loan, interest in respect
of such Applicable Percentage shall be solely for the account of the Foreign Swing Line Lender.

 

(f)                                    Payments Directly to Foreign Swing Line Lender.  The
Borrower shall make all payments of principal and interest in respect of the
Foreign Swing Line Loans directly to the Foreign Swing Line Lender.

 

2.06                        Prepayments

 

(a)                                  Voluntary Prepayments of Committed Loans.  Each
Borrower may, upon notice from the Borrower to the Administrative Agent, at any
time or from time to time voluntarily prepay Committed

 

42

 

Loans
in whole or in part without premium or penalty; provided that
(i) such notice must be received by the Administrative Agent not later
than 11:00 a.m.  (A) three
Business Days prior to any date of prepayment of Eurocurrency Rate Loans
denominated in Dollars, (B) four Business Days (or five, in the case of
prepayment of Loans denominated in Special Notice Currencies) prior to any date
of prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies,
and (C) on the date of prepayment of Base Rate Committed Loans;
(ii) any prepayment of Eurocurrency Rate Loans denominated in Dollars
shall be in a principal amount of $5,000,000 or a whole multiple of $500,000 in
excess thereof; (iii) any prepayment of Eurocurrency Rate Loans
denominated in Alternative Currencies shall be in a minimum principal amount of
$5,000,000 or a whole multiple of $500,000 in excess thereof; and (iv) any
prepayment of Base Rate Committed Loans shall be in a principal amount of
$500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if
less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and
amount of such prepayment and the Type(s) of Committed Loans to be prepaid and,
if Eurocurrency Loans are to be prepaid, the Interest Period(s) of such
Loans.  The Administrative Agent will
promptly notify each Lender of its receipt of each such notice, and of the
amount of such Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.  Any prepayment of a Eurocurrency Rate Loan
shall be accompanied by all accrued interest on the amount prepaid, together
with any additional amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the
Committed Loans of the Lenders in accordance with their respective Applicable
Percentages.

 

(b)                                 Voluntary Prepayments of Domestic Swing Line
Loans.  The Borrower may, upon notice to the Domestic
Swing Line Lender (with a copy to the Administrative Agent), at any time or
from time to time, voluntarily prepay Domestic Swing Line Loans in whole or in
part without premium or penalty; provided that (i) such notice must be
received by the Domestic Swing Line Lender and the Administrative Agent not
later than 1:00 p.m. on the date of the prepayment, and (ii) any such
prepayment shall be in a minimum principal amount of $100,000.  Each such notice shall specify the date and
amount of such prepayment.  If such
notice is given by the Borrower, the Borrower shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the
date specified therein.

 

(c)                                  Voluntary Prepayments of Foreign Swing Line
Loans.  The Borrower may, upon notice to the Foreign
Swing Line Lender (with a copy to the Administrative Agent), at any time or from
time to time, voluntarily prepay Foreign Swing Line Loans in whole or in part
without premium or penalty; provided that (i) such notice must be
received by the Foreign Swing Line Lender and the Administrative Agent not
later than 11:00 a.m. one Business Day prior to the date of prepayment of
any Foreign Swing Line Loan, and (ii) any such prepayment shall be in a minimum
principal amount of $100,000.  Each such
notice shall specify the date and amount of such prepayment.  If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.

 

(d)                                 Mandatory Prepayments. 
(i)  If the Administrative Agent
notifies the Borrower at any time that the Total Outstandings at such time
exceeds the Aggregate Commitments then in effect, then, within two Business
Days after receipt of such notice, the Borrower shall prepay Loans and/or the
Borrower shall Cash Collateralize the L/C Obligations in an aggregate amount
equal to such excess; provided, however, that, subject to the
provisions of Section 2.03(g)(ii), the Borrower shall not be
required to Cash Collateralize the L/C Obligations pursuant to this Section 2.06(d)
unless after the prepayment in full of the Loans the Total Outstandings exceed
the Aggregate Commitments then in effect. 
The Administrative Agent may, at any time and from time to time after
the initial deposit of such Cash Collateral, request that additional Cash
Collateral be provided in order to protect against the results of further
exchange rate fluctuations and (ii) if the Administrative Agent notifies the
Borrower at any time that the Outstanding Amount of all Loans and L/C
Obligations denominated in Alternative Currencies at

 

43

 

such
time exceeds an amount equal to 105% of the Alternative Currency Sublimit then
in effect, then, within three Business Days after receipt of such notice, the
Borrower shall prepay Loans in an aggregate amount sufficient to reduce such
Outstanding Amount as of such date of payment to
an amount not to exceed 100% of the Alternative Currency Sublimit then in
effect.

 

2.07                        Termination or Reduction of Commitments.

 

The Borrower may, upon notice to the Administrative
Agent, terminate the Aggregate Commitments, or from time to time permanently
reduce the Aggregate Commitments; provided that (i) any such notice
shall be received by the Administrative Agent not later than 11:00 a.m.
five Business Days prior to the date of termination or reduction, (ii) any such
partial reduction shall be in an aggregate amount of $5,000,000 or any whole
multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not
terminate or reduce the Aggregate Commitments if, after giving effect thereto
and to any concurrent prepayments hereunder, the Total Outstandings would
exceed the Aggregate Commitments, and (iv) if, after giving effect to any
reduction of the Aggregate Commitments, the Alternative Currency Sublimit, the
Letter of Credit Sublimit, the Domestic Swing Line Sublimit or the Foreign
Swing Line Sublimit exceeds the amount of the Aggregate Commitments, such
Sublimit shall be automatically reduced by the amount of such excess.  The Administrative Agent will promptly notify
the Lenders of any such notice of termination or reduction of the Aggregate
Commitments.  The amount of any such
Aggregate Commitment reduction shall not be applied to the Alternative Currency
Sublimit or the Letter of Credit Sublimit, the Domestic Swing Line Sublimit or
the Foreign Swing Line Sublimit unless otherwise specified by the Borrower. Any
reduction of the Aggregate Commitments shall be applied to the Commitment of
each Lender according to its Applicable Percentage.  All fees accrued until the effective date of
any termination of the Aggregate Commitments shall be paid on the effective
date of such termination.

 

2.08                        Repayment
of Loans.

 

(a)                                  The Borrower shall repay to the Lenders on
the Maturity Date the aggregate principal amount of Committed Loans made to the
Borrower outstanding on such date.

 

(b)                                 The Borrower shall repay each Domestic Swing
Line Loan on the earlier to occur of (i) the date fifteen (15) Business Days
after such Loan is made and (ii) the Maturity Date.

 

(c)                                  The Borrower shall repay each Foreign Swing
Line Loan on the earlier to occur of (i) twenty (20) Business Days and (ii) the
Maturity Date.

 

2.09                        Interest.

 

(a)                                  Subject to the provisions of subsection (b)
below, (i) each Eurocurrency Rate Loan shall bear interest on the outstanding
principal amount thereof for each Interest Period at a rate per annum equal to
the Eurocurrency Rate for such Interest Period plus the Applicable Rate plus
(in the case of a Eurocurrency Rate Loan of any Lender which is lent from a
Lending Office in the United Kingdom or a Participating Member State) the
Mandatory Cost; (ii) each Base Rate Committed Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate; (iii)
each Domestic Swing Line Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to
the Base Rate plus the Applicable Rate; and (iv) each Foreign Swing Line
Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Foreign Swing Line
Base Rate plus the Applicable Rate.

 

44

 

(b)                                 (i)                                     If any amount of principal of any Loan is not
paid when due (without regard to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, such amount shall thereafter
bear interest at a fluctuating interest rate per annum at all times equal to
the Default Rate to the fullest extent permitted by applicable Laws.

 

(ii)                                  If any amount (other than principal of any
Loan) payable by the Borrower under any Loan Document is not paid when due
(without regard to any applicable grace periods), whether at stated maturity,
by acceleration or otherwise, then upon the request of the Required Lenders,
such amount shall thereafter bear interest at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

 

(iii)                               Accrued and unpaid interest on past due
amounts (including interest on past due interest) shall be due and payable upon
written demand.

 

(c)                                  Interest on each Loan shall be due and
payable in arrears on each Interest Payment Date applicable thereto and at such
other times as may be specified herein. 
Interest hereunder shall be due and payable in accordance with the terms
hereof before and after judgment, and before and after the commencement of any
proceeding under any Debtor Relief Law.

 

2.10                        Fees.

 

In addition to certain fees described in
subsections (i) and (j) of Section 2.03:

 

(a)                                  Commitment Fee.  The
Borrower shall pay to the Administrative Agent for the account of each Lender
(other than Defaulting Lenders) in accordance with its Applicable Percentage, a
commitment fee in Dollars equal to the Applicable Rate times the actual
daily amount by which the Aggregate Commitments exceed the sum of (i) the
Outstanding Amount of Committed Loans and (ii) the Outstanding Amount of L/C
Obligations.  The commitment fee shall
accrue at all times during the Availability Period, including at any time
during which one or more of the conditions in Article IV is not
met, and shall be due and payable quarterly in arrears on the last Business Day
of each March, June, September and December, commencing with the first
such date to occur after the Closing Date, and on the Maturity Date.  The commitment fee shall be calculated
quarterly in arrears, and if there is any change in the Applicable Rate during
any quarter, the actual daily amount shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect.

 

(b)                                 Other Fees.  (i)  The Borrower shall pay to BAS and the
Administrative Agent for their own respective accounts, in Dollars, fees in the
amounts and at the times specified in the Fee Letter.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever and (ii) the Borrower shall
pay to the Lenders, in Dollars, such fees as shall have been separately agreed
upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever other than as a result of the
failure of the Administrative Agent or BAS, as the case may be, to comply with
the terms of this Agreement with respect to the activities for which the fees
are being charged.

 

2.11                        Computation of Interest and Fees.

 

All computations of interest for Base Rate Loans
when the Base Rate is determined by Bank of America’s “prime rate” and for
Foreign Swing Line Loans bearing interest at the Foreign Swing Line Base Rate
(other than with respect to Foreign Swing Line Loans denominated in Euros),
shall be made on

 

45

 

the basis of a year of 365 or 366 days, as the case may be, and actual
days elapsed.  All other computations of
fees and interest shall be made on the basis of a 360-day year and actual days
elapsed (which results in more fees or interest, as applicable, being paid than
if computed on the basis of a 365-day year), or, in the case of interest in
respect of Committed Loans denominated in Alternative Currencies as to which
market practice differs from the foregoing, in accordance with such market
practice.  Interest shall accrue on each
Loan for the day on which the Loan is made, and shall not accrue on a Loan, or
any portion thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.13(a), bear interest for one day.  Each determination by the Administrative
Agent of an interest rate or fee hereunder shall be conclusive and binding for
all purposes, absent manifest error.

 

2.12                        Evidence
of Debt.

 

(a)                                  The Credit Extensions made by each Lender
shall be evidenced by one or more accounts or records maintained by such Lender
and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Credit Extensions made by the Lenders to the Borrower and
the interest and payments thereon.  Any
failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrower hereunder to pay any amount
owing with respect to the Obligations. 
In the event of any conflict between the accounts and records maintained
by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent
shall control in the absence of manifest error. 
Upon the request of any Lender to the Borrower made through the
Administrative Agent, the Borrower shall promptly execute and deliver to such
Lender (through the Administrative Agent) a Note, which shall evidence such
Lender’s Loans to the Borrower in addition to such accounts or records.  Each Lender may attach schedules to a Note
and endorse thereon the date, Type (if applicable), amount, currency and
maturity of its Loans and payments with respect thereto.

 

(b)                                 In addition to the accounts and records
referred to in subsection (a), each Lender and the Administrative Agent
shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters
of Credit and Swing Line Loans.  In the
event of any conflict between the accounts and records maintained by the Administrative
Agent and the accounts and records of any Lender in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error.

 

2.13                        Payments Generally; Administrative Agent’s Clawback.

 

(a)                                  General.  All payments to be made by the
Borrower shall be made without condition or deduction for any counterclaim,
defense, recoupment or setoff.  Except as
otherwise expressly provided herein and except with respect to principal of and
interest on Loans denominated in an Alternative Currency, all payments by the
Borrower hereunder shall be made to the Administrative Agent, for the account
of the respective Lenders to which such payment is owed, at the applicable
Administrative Agent’s Office in Dollars and in Same Day Funds not later than
2:00 p.m. on the date specified herein. 
Except as otherwise expressly provided herein, all payments by the
Borrower hereunder with respect to principal and interest on Loans denominated
in an Alternative Currency shall be made to the Administrative Agent, for the
account of the respective Lenders to which such payment is owed, at the
applicable Administrative Agent’s Office in such Alternative Currency and in
Same Day Funds not later than the Applicable Time specified by the Administrative
Agent on the dates specified herein. 
Without limiting the generality of the foregoing, the Administrative
Agent may require that any payments due under this Agreement be made in the
United States.  If, for any reason, the
Borrower is prohibited by any

 

46

 

Law
from making any required payment hereunder in an Alternative Currency, the
Borrower shall make such payment in Dollars in the Dollar Equivalent of the
Alternative Currency payment amount.  The
Administrative Agent will promptly distribute to each Lender its Applicable
Percentage (or other applicable share as provided herein) of such payment in
like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent (i) after 2:00 p.m., in the case of payments in Dollars, or
(ii) after the Applicable Time specified by the Administrative Agent in
the case of payments in an Alternative Currency, shall in each case be deemed
received on the next succeeding Business Day and any applicable interest or fee
shall continue to accrue.  If any payment
to be made by the Borrower shall come due on a day other than a Business Day,
payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be.

 

(b)                                 (i)                                     Funding by Lenders; Presumption by
Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Lender prior to the proposed date of any Committed
Borrowing of Eurocurrency Rate Loans (or, in the case of any Committed
Borrowing of Base Rate Loans, prior to 12:00 noon on the date of such Committed
Borrowing) that such Lender will not make available to the Administrative Agent
such Lender’s share of such Committed Borrowing, the Administrative Agent may
assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Committed
Borrowing of Base Rate Loans, that such Lender has made such share available in
accordance with and at the time required by Section 2.02) and may,
in reliance upon such assumption, make available to the Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Committed Borrowing
available to the Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Administrative Agent forthwith on demand
such corresponding amount in Same Day Funds with interest thereon, for each day
from and including the date such amount is made available to the Borrower to
but excluding the date of payment to the Administrative Agent, at (A) in the
case of a payment to be made by such Lender, the Overnight Rate and (B) in the
case of a payment to be made by the Borrower, the interest rate applicable to
Base Rate Loans.  If the Borrower and
such Lender shall pay such interest to the Administrative Agent for the same or
an overlapping period, the Administrative Agent shall promptly remit to such
Borrower the amount of such interest paid by such Borrower for such
period.  If such Lender pays its share of
the applicable Committed Borrowing to the Administrative Agent, then the amount
so paid shall constitute such Lender’s Committed Loan included in such
Committed Borrowing.  Any payment by such
Borrower shall be without prejudice to any claim such Borrower may have against
a Lender that shall have failed to make such payment to the Administrative
Agent.

 

(ii)                                  Payments by Borrower; Presumptions by
Administrative Agent.  Unless the Administrative Agent shall have
received notice from a Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders or the L/C Issuer
hereunder that such Borrower will not make such payment, the Administrative
Agent may assume that such Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to
the Lenders or the L/C Issuer, as the case may be, the amount due.  In such event, if such Borrower has not in
fact made such payment, then each of the Lenders or the L/C Issuer, as the case
may be, severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender or the L/C Issuer, in Same Day
Funds with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the Overnight Rate.

 

A
notice of the Administrative Agent to any Lender or Borrower with respect to
any amount owing under this subsection (b) shall be conclusive, absent
manifest error.

 

47

 

(c)                                  Failure to Satisfy Conditions Precedent.  If
any Lender makes available to the Administrative Agent funds for any Loan to be
made by such Lender to the Borrower as provided in the foregoing provisions of
this Article II, and such funds are not made available to such
Borrower by the Administrative Agent because the conditions to the applicable
Credit Extension set forth in Article IV are not satisfied or
waived in accordance with the terms hereof, the Administrative Agent shall
return such funds (in like funds as received from such Lender) to such Lender,
without interest.

 

(d)                                 Obligations of Lenders Several.  The
obligations of the Lenders hereunder to make Committed Loans, to fund
participations in Letters of Credit and Swing Line Loans and to make payments
pursuant to Section 10.04(c) are several and not joint.  The failure of any Lender to make any
Committed Loan, to fund any such participation or to make any payment under Section 10.04(c)
on any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Committed Loan,
to purchase its participation or to make its payment under Section 10.04(c).

 

(e)                                  Funding Source. 
Other than the requirement to comply with applicable Laws, nothing
herein shall be deemed to obligate any Lender to obtain the funds for any Loan
in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any
particular place or manner.

 

2.14                        Sharing of Payments by Lenders.

 

If any Lender shall, by exercising any right of
setoff or counterclaim or otherwise, obtain payment in respect of any principal
of or interest on any of the Committed Loans made by it, or the participations
in L/C Obligations or in Swing Line Loans held by it resulting in such Lender’s
receiving payment of a proportion of the aggregate amount of such Committed
Loans or participations and accrued interest thereon greater than its pro
rata share thereof as provided herein, then the Lender receiving such
greater proportion shall (a) notify the Administrative Agent of such fact, and
(b) purchase (for cash at face value) participations in the Committed Loans and
subparticipations in L/C Obligations and Swing Line Loans of the other Lenders,
or make such other adjustments as shall be equitable, so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Committed Loans and other amounts owing them, provided that:

 

(i)                                     if any such participations or
subparticipations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations or subparticipations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest; and

 

(ii)                                  the provisions of this Section shall not
be construed to apply to (x) any payment made by a Borrower pursuant to and in
accordance with the express terms of this Agreement or (y) any payment obtained
by a Lender as consideration for the assignment of or sale of a participation
in any of its Committed Loans or subparticipations in L/C Obligations or Swing
Line Loans to any assignee or participant, other than to the Borrower or any
Subsidiary thereof (as to which the provisions of this Section shall
apply).

 

Each
Loan Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring an assignment
pursuant to the foregoing arrangements may exercise against such Loan Party
rights of setoff and counterclaim with respect to such assignment as fully as
if such Lender were a direct creditor of such Loan Party in the amount of such
assignment.

 

48

 

2.15                        Increase in Commitments.

 

(a)                                  Request for Increase. 
Provided there exists no Default, upon notice to the Administrative
Agent (which shall promptly notify the Lenders), the Borrower may from time to
time, request an increase in the Aggregate Commitments by an amount (for all
such requests) not exceeding $200,000,000; provided that (i) any such
request for an increase shall be in a minimum amount of $25,000,000 and (ii)
the Borrower may make a maximum of four such requests.  At the time of sending such notice, the
Borrower (in consultation with the Administrative Agent) shall specify the time
period within which each Lender is requested to respond (which shall in no
event be less than ten Business Days from the date of delivery of such notice
to the Lenders).

 

(b)                                 Lender Elections to Increase.  Each
Lender shall notify the Administrative Agent within such time period whether or
not it agrees to increase its Commitment and, if so, whether by an amount equal
to, greater than, or less than its Applicable
Percentage of such requested increase. 
Any Lender not responding within such time period shall be deemed to
have declined to increase its Commitment.

 

(c)                                  Notification by Administrative Agent;
Additional Lenders.  The Administrative Agent shall notify the
Borrower and each Lender of the Lenders’ responses to each request made
hereunder.  To achieve the full amount of
a requested increase and subject to the approval of the Administrative Agent
and the L/C Issuer (which approvals shall not be unreasonably withheld or
delayed), the Borrower may also contemporaneously with the notice to the
Lenders, invite additional Eligible Assignees to become Lenders pursuant to a
joinder agreement in form and substance reasonably satisfactory to the
Borrower, the Administrative Agent and their respective counsel.

 

(d)                                 Effective Date and Allocations.  If
the Aggregate Commitments are increased in accordance with this Section, the
Administrative Agent and the Borrower shall determine the effective date (the “Increase
Effective Date”) and the final allocation of such increase.  The Administrative Agent shall promptly
notify the Borrower and the Lenders of the final allocation of such increase
and the Increase Effective Date.

 

(e)                                  Conditions to Effectiveness of Increase.  As a
condition precedent to such increase, the Borrower shall deliver to the
Administrative Agent a certificate of each Loan Party dated as of the Increase
Effective Date (in sufficient copies for each Lender) signed by a Responsible
Officer of such Loan Party (i) certifying and attaching the resolutions adopted
by such Loan Party approving or consenting to such increase, and (ii)
certifying that, before and after giving effect to such increase, (A) the
representations and warranties contained in Article V and the other
Loan Documents are true and correct in all material respects on and as of the
Increase Effective Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct in all material respects as of such earlier date, and except that
for purposes of this Section 2.15, the representations and
warranties contained in subsection (a) of Section 5.05 shall
be deemed to refer to the most recent statements furnished pursuant to clauses (a)
and (b), respectively, of Section 6.01, and (B) no Default has
occurred and is continuing.  The Borrower
shall prepay any Committed Loans outstanding on the Increase Effective Date
(and pay any additional amounts required pursuant to Section 3.05)
to the extent necessary to keep the outstanding Committed Loans ratable with
any revised Applicable Percentages arising from any nonratable increase in the
Commitments under this Section.

 

(f)                                    Conflicting Provisions.  This
Section shall supersede any provisions in Sections 2.14 or 10.01
to the contrary.

 

49

 

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01                        Taxes.

 

(a)                                  Payments Free of Taxes.  Any
and all payments by or on account of any obligation of the Borrower hereunder
or under any other Loan Document shall be made free and clear of and without
reduction or withholding for any Indemnified Taxes or Other Taxes, provided
that if the Borrower shall be required by applicable law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an
amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) such Borrower
shall timely pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

 

(b)                                 Payment of Other Taxes by the Borrower. 
Without limiting the provisions of subsection (a) above, the
Borrower shall timely pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

 

(c)                                  Indemnification by the Borrower.  The
Borrower shall indemnify the Administrative Agent, each Lender and the L/C
Issuer, within 10 Business Days after written demand therefor, for the full
amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or
Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) paid by the Administrative Agent, such Lender or the L/C Issuer,
as the case may be, and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority.  A certificate as
to the amount of such payment or liability together with back-up documentation
supporting such reimbursement obligations delivered to the Borrower by a Lender
or the L/C Issuer (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender or the L/C
Issuer, shall be conclusive absent manifest error; provided that if the
Borrower reasonably believes that such Indemnified Taxes or Other Taxes were
not correctly or legally asserted, the Administrative Agent, Lender, or the L/C
Issuer, as the case may be, will use reasonable efforts to cooperate with the
Borrower to obtain a refund of such Taxes.

 

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

 

(e)                                  Status of Lenders.  Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which a Borrower is
resident for tax purposes, or any treaty to which such jurisdiction is a party,
with respect to payments hereunder or under any other Loan Document shall
deliver to the Borrower (with a copy to the Administrative Agent), at the time
or times prescribed by applicable law or reasonably requested by the Borrower
or the Administrative Agent, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate of withholding.  In addition, any Lender, if requested by the
Borrower or the Administrative Agent, shall deliver such other documentation
prescribed

 

50

 

by
applicable law or reasonably requested by the Borrower or the Administrative
Agent as will enable the Borrower or the Administrative Agent to determine
whether or not such Lender is subject to backup withholding or information
reporting requirements.

 

Without limiting the generality of the foregoing,
any Foreign Lender shall deliver to Borrower and the Administrative Agent (in
such number of copies as shall be requested by the recipient) on or prior to
the date on which such Foreign Lender becomes a Lender under this Agreement
(and from time to time thereafter upon the request of the Borrower or the
Administrative Agent, but only if such Foreign Lender is legally entitled to do
so), whichever of the following is applicable:

 

(i)                                     duly completed copies of Internal Revenue
Service Form W-8BEN claiming eligibility for benefits of an income tax
treaty to which the United States is a party,

 

(ii)                                  duly completed copies of Internal Revenue
Service Form W-8ECI,

 

(iii)                               in the case of a Foreign Lender claiming the
benefits of the exemption for portfolio interest under section 881(c) of
the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a
“bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10
percent shareholder” of the Borrower within the meaning of section 881(c)(3)(B)
of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C)
of the Code and (y) duly completed copies of Internal Revenue Service
Form W-8BEN, or

 

(iv)                              any other form prescribed by applicable law
as a basis for claiming exemption from or a reduction in United States Federal
withholding tax duly completed together with such supplementary documentation
as may be prescribed by applicable law to permit the Borrower to determine the withholding
or deduction required to be made.

 

Without limiting the obligations of the Lenders set
forth above regarding delivery of certain forms and documents to establish each
Lender’s status for U.S.  withholding tax
purposes, each Lender agrees promptly to deliver to the Administrative Agent or
the Borrower, as the Administrative Agent or the Borrower shall reasonably
request, on or prior to the Closing Date, and in a timely fashion thereafter,
such other documents and forms required by any relevant taxing authorities
under the Laws of any other jurisdiction, duly executed and completed by such
Lender, as are required under such Laws to confirm such Lender’s entitlement to
any available exemption from, or reduction of, applicable withholding taxes in
respect of all payments to be made to such Lender outside of the U.S.  by the Borrower pursuant to this Agreement or
otherwise to establish such Lender’s status for withholding tax purposes in
such other jurisdiction.  Each Lender
shall promptly (i) notify the Administrative Agent of any change in
circumstances which would modify or render invalid any such claimed exemption
or reduction, and (ii) take such steps as shall not be materially
disadvantageous to it, in the reasonable judgment of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to
avoid any requirement of applicable Laws of any such jurisdiction that the
Borrower make any deduction or withholding for taxes from amounts payable to
such Lender.  Additionally, each of the
Borrower shall promptly deliver to the Administrative Agent or any Lender, as
the Administrative Agent or such Lender shall reasonably request, on or prior
to the Closing Date, and in a timely fashion thereafter, such documents and forms
required by any relevant taxing authorities under the Laws of any jurisdiction,
duly executed and completed by such Borrower, as are required to be furnished
by such Lender or the Administrative Agent under such Laws in connection with
any payment by the Administrative Agent or any Lender of Taxes or Other Taxes,
or otherwise in connection with the Loan Documents, with respect to such
jurisdiction.

 

51

 

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

 

3.02                        Illegality.

 

If, after the date hereof, any Lender determines
that any Law has made it unlawful, or that any Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable Lending Office
to make, maintain or fund Eurocurrency Rate Loans (whether denominated in Dollars
or an Alternative Currency), or to determine or charge interest rates based
upon the Eurocurrency Rate, or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take
deposits of, Dollars or any Alternative Currency in the applicable interbank
market, then, on notice thereof by such Lender to the Borrower through the
Administrative Agent, any obligation of such Lender to make or continue
Eurocurrency Rate Loans in the affected currency or currencies or, in the case
of Eurocurrency Rate Loans in Dollars, to convert Base Rate Committed Loans to
Eurocurrency Rate Loans, shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to such
determination no longer exist.  Upon
receipt of such written notice, the Borrower shall, upon written demand from
such Lender (with a copy to the Administrative Agent), prepay or, if applicable
and such Loans are denominated in Dollars, convert all such Eurocurrency Rate
Loans of such Lender to Base Rate Loans, either on the last day of the Interest
Period therefor, if such Lender may lawfully continue to maintain such
Eurocurrency Rate Loans to such day, or immediately, if such Lender may not
lawfully continue to maintain such Eurocurrency Rate Loans.  Upon any such prepayment or conversion, the
Borrower shall also pay accrued interest on the amount so prepaid or converted.

 

3.03                        Inability to Determine Rates.

 

If after the date hereof the Required Lenders
determine that for any reason in connection with any request for a Eurocurrency
Rate Loan or a conversion to or continuation thereof that (a) deposits
(whether in Dollars or an Alternative Currency) are not being offered to banks
in the applicable offshore interbank market for such currency for the
applicable amount and Interest Period of such Eurocurrency Rate Loan,
(b) adequate and reasonable means do not exist for determining the
Eurocurrency Rate for any requested Interest Period with respect to a proposed
Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative
Currency), or (c) the Eurocurrency Rate for any requested Interest Period
with respect to a proposed Eurocurrency Rate Loan does not adequately and
fairly reflect the cost to such Lenders of funding such Eurocurrency Rate Loan,
the Administrative Agent will promptly so notify the Borrower and each
Lender.  Thereafter, the obligation of
the Lenders to make or maintain Eurocurrency Rate Loans

 

52

 

in
the affected currency or currencies shall be suspended until the Administrative
Agent (upon the instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may
revoke any pending request for a Borrowing of, conversion to or continuation of
Eurocurrency Rate Loans in the affected currency or currencies or, failing
that, will be deemed to have converted such request into a request for a
Committed Borrowing of Base Rate Loans in the amount specified therein.

 

3.04                        Increased Costs; Reserves on Eurocurrency Rate Loans.

 

(a)                                  Increased Costs Generally.  If,
after the date hereof,:

 

(i)                                     any Change in Law shall impose, modify or
deem applicable any reserve, special deposit, compulsory loan, insurance charge
or similar requirement against assets of, deposits with or for the account of,
or credit extended or participated in by, any Lender (except (A) any reserve
requirement reflected in the
Eurocurrency Rate and (B) the requirements of the Bank of England and the
Financial Services Authority or the European Central Bank reflected in the
Mandatory Cost, other than as set forth below) or the L/C Issuer;

 

(ii)                                  any Change in Law shall subject any Lender or
the L/C Issuer to any additional tax of any kind whatsoever with respect to
this Agreement, any Letter of Credit, any participation in a Letter of Credit
or any Eurocurrency Rate Loan made by it, or change the basis of taxation of
payments to such Lender or the L/C Issuer in respect thereof (except for
Indemnified Taxes or Other Taxes covered by Section 3.01 and the
imposition of, or any change in the rate of, any Excluded Tax payable by such
Lender or the L/C Issuer);

 

(iii)                               the Mandatory Cost, as calculated hereunder,
does not represent the cost to any Lender of complying with the requirements of
the Bank of England and/or the Financial Services Authority or the European
Central Bank in relation to its making, funding or maintaining Eurocurrency
Rate Loans; or

 

(iv)                              any Change in Law shall impose on any Lender
or the L/C Issuer or the London interbank market any other condition, cost or
expense affecting this Agreement or Eurocurrency Rate Loans made by such Lender
or any Letter of Credit or participation therein;

 

and
the result of any of the foregoing shall be to increase the cost to such Lender
of making or maintaining any Eurocurrency Rate Loan (or of maintaining its
obligation to make any such Loan), or to increase the cost to such Lender or
the L/C Issuer of participating in, issuing or maintaining any Letter of Credit
(or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such
Lender or the L/C Issuer hereunder (whether of principal, interest or any other
amount) then, upon written request of such Lender or the L/C Issuer, the
Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer,
as the case may be, for such additional costs incurred or reduction suffered.

 

(b)                                 Capital Requirements.  If,
after the date hereof, any Lender or the L/C Issuer determines that any Change
in Law affecting such Lender or the L/C Issuer or any Lending Office of such
Lender or such Lender’s or the L/C Issuer’s holding company, if any, regarding
capital requirements has or would have the effect of reducing the rate of
return on such Lender’s or the L/C Issuer’s capital or on the capital of such
Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the L/C Issuer, to a level below that which such Lender or the
L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have
achieved but for such

 

53

 

Change
in Law (taking into consideration such Lender’s or the L/C Issuer’s policies
and the policies of such Lender’s or the L/C Issuer’s holding company with
respect to capital adequacy), then from time to time the Borrower will pay to
such Lender or the L/C Issuer, as the case may be, such additional amount or
amounts as will compensate such Lender or the L/C Issuer or such Lender’s or
the L/C Issuer’s holding company for any such reduction suffered.

 

(c)                                  Certificates for Reimbursement.  A
certificate of a Lender or the L/C Issuer setting forth the amount or amounts
necessary to compensate such Lender or the L/C Issuer or its holding company
(with reasonable detail supporting such reimbursement request), as the case may
be, as specified in subsection (a) or (b) of this Section and
delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender or the L/C
Issuer, as the case may be, the amount shown as due on any such certificate
within 30 Business Days after receipt thereof.

 

(d)                                 Delay in Requests. 
Failure or delay on the part of any Lender or the L/C Issuer to demand
compensation pursuant to the foregoing provisions of this Section shall
not constitute a waiver of such Lender’s or the L/C Issuer’s right to demand
such compensation, provided that the Borrower shall not be required to
compensate a Lender or the L/C Issuer pursuant to the foregoing provisions of
this Section for any increased costs incurred or reductions suffered more
than 180 days prior to the date that such Lender or the L/C Issuer, as the case
may be, notifies the Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or the L/C Issuer’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such
increased costs or reductions is retroactive, then the 180 day period referred
to above shall be extended to include the period of retroactive effect
thereof).

 

(e)                                  Additional Reserve
Requirements.  The Borrower shall pay each
Lender, as long as such Lender shall be required to
comply with any reserve ratio requirement or analogous requirement of any
central banking or financial regulatory authority imposed in respect of the
maintenance of the Commitments or the funding of the Eurocurrency Rate Loans,
such additional costs (expressed as a percentage per annum and rounded upwards,
if necessary, to the nearest five decimal places) equal to the actual costs
allocated to such Commitment or Loan by such Lender (as determined by such
Lender in good faith, which determination shall be conclusive), which shall be due and payable on each date on
which interest is payable on such Loan, provided the Borrower shall have
received at least 30 Business Days’ prior notice (with a copy to the
Administrative Agent) of such additional costs from such Lender.  If a Lender fails to give notice 30 Business
Days prior to the relevant Interest Payment Date, such additional costs shall
be due and payable 30 Business Days from receipt of such notice.

 

3.05                        Compensation
for Losses.

 

Upon written demand of any Lender (with a copy to
the Administrative Agent) from time to time, the Borrower shall promptly
compensate such Lender for and hold such Lender harmless from any loss, cost or
expense incurred by it as a result of:

 

(a)                                  any continuation, conversion, payment or
prepayment of any Loan other than a Base Rate Loan on a day other than the last
day of the Interest Period for such Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise);

 

(b)                                 any failure by the Borrower (for a reason
other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Loan other than a Base Rate Loan on the date or in the
amount notified by the Borrower;

 

54

 

(c)                                  any failure by the Borrower to make payment
of any Loan or drawing under any Letter of Credit (or interest due thereon)
denominated in an Alternative Currency on its scheduled due date or any payment
thereof in a different currency; or

 

(d)                                 any assignment of a Eurocurrency Rate Loan on
a day other than the last day of the Interest Period therefor as a result of a
request by the Borrower pursuant to Section 10.13;

 

including
any foreign exchange losses and any loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan, from
fees payable to terminate the deposits from which such funds were obtained or
from the performance of any foreign exchange contract.

 

For
purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each
Eurocurrency Rate Loan made by it at the Eurocurrency Base Rate used in
determining the Eurocurrency Rate for such Loan by a matching deposit or other
borrowing in the offshore interbank market for such currency for a comparable
amount and for a comparable period, whether or not such Eurocurrency Rate Loan
was in fact so funded.

 

3.06                        Mitigation Obligations; Replacement of Lenders.

 

(a)                                  Designation of a Different Lending Office.  If
any Lender requests compensation under Section 3.04, or the Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01,
or if any Lender gives a notice pursuant to Section 3.02, then such
Lender shall use reasonable efforts to prepare and file any certificate or
document requested by the Borrower or designate a different Lending Office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender, such preparation, filing, designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 3.01
or 3.04, as the case may be, in the future, or eliminate the need for
the notice pursuant to Section 3.02, as applicable, and (ii) in
each case, would not subject such Lender to any material unreimbursed cost or
expense and would not otherwise be materially disadvantageous to such
Lender.  The Borrower hereby agrees to pay
all reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

 

(b)                                 Replacement of Lenders.  If
any Lender requests compensation under Section 3.04, or if the
Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01,
or in the case of a refusal by a Lender to consent to a proposed change,
waiver, discharge or termination with respect to this Agreement which has been
approved by the Required Lenders as provided in Section 10.01, the
Borrower may replace such Lender in accordance with Section 10.13.

 

3.07                        Survival.

 

All of the Borrower’s obligations under this Article III
shall survive termination of the Aggregate Commitments and repayment of all
other Obligations hereunder.

 

55

 

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

4.01                        Conditions of Initial Credit
Extension.  The
obligation of the L/C Issuer and each Lender to make its initial Credit Extension
hereunder is subject to satisfaction or waiver of the following conditions
precedent:

 

(a)                                  The Administrative Agent’s receipt of the
following, each of which shall be originals, Adobe files or telecopies
(followed promptly by originals) unless otherwise specified, each properly
executed by a Responsible Officer of the signing Loan Party, each dated the
Closing Date (or, in the case of certificates of governmental officials, a
recent date before the Closing Date) and each in form and substance reasonably
satisfactory to the Administrative Agent and each of the Lenders:

 

(i)                                     executed counterparts of this Agreement,
sufficient in number for distribution to the Administrative Agent and the
Borrower;

 

(ii)                                  Notes executed by the Borrower in favor of
each Lender requesting Notes prior to the Closing Date;

 

(iii)                               such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible
Officers of each Loan Party as the Administrative Agent may reasonably require
evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection with this
Agreement and the other Loan Documents to which such Loan Party is a party;

 

(iv)                              such documents and certifications as the
Administrative Agent may reasonably require to evidence that each Loan Party is
duly organized or formed, and that each of the Borrower and the Guarantors is
validly existing, in good standing and qualified to engage in business in its
state of organization;

 

(v)                                 a favorable opinion of Kirkland & Ellis
LLP, counsel to the Loan Parties, addressed to the Administrative Agent and
each Lender, as to the matters set forth in Exhibit J and such
other matters concerning the Loan Parties and the Loan Documents as the
Administrative Agent may reasonably request;

 

(vi)                              a certificate of a Responsible Officer of the
Borrower (A) either (I) attaching copies of all consents, licenses and
approvals required in connection with the execution, delivery and performance
by such Loan Party and the validity against such Loan Party of the Loan
Documents to which it is a party, and such consents, licenses and approvals
shall be in full force and effect, or (II) stating that no such consents,
licenses or approvals are so required; (B) that certifies that the conditions
specified in Sections 4.02(a) and (b) have been satisfied,
(C) that certifies that there has been no event or circumstance since the date
of the Audited Financial Statements that has had or could be reasonably
expected to have, either individually or in the aggregate, a Material Adverse
Effect; and (D) that certifies the current Debt
Ratings;

 

(vii)                           evidence that the Existing Credit Agreement
has been or concurrently with the Closing Date is being terminated and all
Liens securing obligations under the

 

56

 

Existing Credit Agreement have been or concurrently
with the Closing Date are being released; and

 

(viii)                        such other assurances, certificates,
documents, consents or opinions as the Administrative Agent, the L/C Issuer,
the Domestic Swing Line Lender, the Foreign Swing Line Lender or the Required
Lenders reasonably may require.

 

(b)                                 Any invoiced fees required to be paid on or
before the Closing Date shall have been paid.

 

(c)                                  Unless waived by the Administrative Agent,
the Borrower shall have paid all reasonable fees, charges and disbursements of
counsel to the Administrative Agent to the extent invoiced prior to or on the
Closing Date.

 

Without
limiting the generality of the provisions of Section 9.04, for
purposes of determining compliance with the conditions specified in this Section 4.01,
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
notice from such Lender prior to the proposed Closing Date specifying its objection
thereto.

 

4.02                        Conditions to all Credit Extensions.

 

The obligation of each Lender to honor any Request
for Credit Extension (other than a Committed Loan Notice requesting only a
conversion of Committed Loans to the other Type, or a continuation of
Eurocurrency Rate Loans) is subject to the satisfaction or waiver of following
conditions precedent:

 

(a)                                  The representations and warranties of the
Borrower and each other Loan Party contained in Article V or any
other Loan Document or in any document furnished at any time under or in
connection herewith or therewith, shall be true and correct in all material
respects on and as of the date of such Credit Extension, except to the extent
that such representations and warranties specifically refer to an earlier date,
in which case they shall be true and correct in all material respects as of
such earlier date, and except that for purposes of this Section 4.02,
the representations and warranties contained in Section 5.05(a)
shall be deemed to refer to the most recent statements furnished pursuant to
clauses (a) and (b), respectively, of Section 6.01.

 

(b)                                 No Default shall exist, or would result from
such proposed Credit Extension or the application of the proceeds thereof.

 

(c)                                  The Administrative Agent and, if applicable,
the L/C Issuer, the Domestic Swing Line Lender or the Foreign Swing Line Lender
shall have received a Request for Credit Extension in accordance with the
requirements hereof.

 

(d)                                 In the case of a Credit Extension to be
denominated in an Alternative Currency, there shall not have occurred any
change in national or international financial, political or economic conditions
or currency exchange rates or exchange controls which in the reasonable opinion
of the Administrative Agent, the Required Lenders (in the case of any Committed
Loans to be denominated in an Alternative Currency) or the L/C Issuer (in the
case of any Letter of Credit to be denominated in an Alternative Currency) or
the Swing Line Lender (in the case of any Swing Line Loan to be denominated in
an Alternate Currency) in consultation with the

 

57

 

Borrower would make it impracticable for such Credit
Extension to be denominated in the relevant Alternative Currency.

 

Each
Request for Credit Extension (other than a Committed Loan Notice requesting
only a conversion of Committed Loans to the other Type or a continuation of
Eurocurrency Rate Loans) submitted by the Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections 4.02(a)
and (b) have been satisfied or waived on and as of the date of the
applicable Credit Extension.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

 

Each of the Loan Parties represents and warrants to
the Administrative Agent and the Lenders that:

 

5.01                        Existence, Qualification and Power.

 

Each Loan Party and each Subsidiary thereof (a) is duly organized or formed,
validly existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority and
all requisite material governmental licenses, authorizations, consents and
approvals necessary to (i) own or lease its assets and carry on its business
and (ii) execute, deliver and perform its obligations under the Loan Documents
to which it is a party and (c) is duly qualified and is licensed and in good
standing under the Laws of each jurisdiction where its ownership, lease or
operation of properties or the conduct of its business requires such
qualification or license; except in each case referred to in
clauses (b)(i), or (c), to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect.

 

5.02                        Authorization; No Contravention.

 

The execution, delivery and performance by each Loan
Party of each Loan Document to which such Person is party, have been duly
authorized by all necessary corporate or other organizational action, and do
not and will not (a) contravene the terms of any of such Person’s Organization
Documents; (b) conflict with or result in any breach or contravention of, or
the creation of any Lien under, or require any payment to be made under (i) any
material Contractual Obligation to which such Person is a party or affecting
such Person or the properties of such Person or any of its Subsidiaries or (ii)
any order, injunction, writ or decree of any Governmental Authority or any
arbitral award to which such Person or its property is subject; or (c) violate
any Law.

 

5.03                        Governmental Authorization; Other Consents.

 

Except for (i) filings necessary to perfect the
Administrative Agent’s security interest in the Collateral on the Collateral
Pledge Effective Date or the Real and Personal Property Effective Date, as the
case may be, (ii) the release of liens granted in connection with the
termination of the Existing Credit Agreement and (iii) approvals, consents,
exemptions, authorizations or other actions that have been obtained prior to
the Closing Date, no approval, consent, exemption, authorization, or other
action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with the execution,
delivery or performance by, or enforcement against, any Loan Party of this
Agreement or any other Loan Document.

 

58

 

5.04                        Binding
Effect.

 

This Agreement has been, and each other Loan
Document, when delivered hereunder, will have been, duly executed and delivered
by each Loan Party that is party thereto. 
This Agreement constitutes, and each other Loan Document when so
delivered will constitute, a legal, valid and binding obligation of such Loan
Party, enforceable against each Loan Party that is party thereto in accordance
with its terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether
considered in proceedings in equity or at law and by an implied covenant of
good faith and fair dealing.

 

5.05                        Financial Statements; No Material Adverse Effect.

 

(a)                                  The Audited Financial Statements (i) were
prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; (ii) fairly
present in all material respects the financial condition of the Parent and its
Subsidiaries as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein; and
(iii) show all material indebtedness and other liabilities, direct or
contingent, of the Parent and its Subsidiaries as of the date thereof,
including liabilities for taxes, material commitments and Indebtedness.

 

(b)                                 Since the date of the Audited Financial
Statements, there has been no event or circumstance, either individually or in
the aggregate, that has had or could reasonably be expected to have a Material
Adverse Effect.

 

(c)                                  The consolidated
forecasted balance sheet and statements of income and cash flows of the Parent and its Subsidiaries delivered pursuant to Section 6.01(b)
were prepared in good faith on the basis of the assumptions stated therein,
which assumptions were fair in light of the conditions existing at the time of
delivery of such forecasts, and represented, at the time of delivery, the Parent’s
best estimate of its future financial
performance; provided, however, the Lenders recognize that
projections as to future events are not to be interpreted as facts and that
actual results during the period or periods covered by such projections may
differ from the projected results and such differences may be material.

 

5.06                        Litigation.

 

There are no actions, suits, proceedings, claims
or disputes pending or, to the knowledge of the Parent or the Borrower after
due and diligent investigation, threatened or contemplated, at law, in equity,
in arbitration or before any Governmental Authority, by or against the Parent
or any of its Subsidiaries or against any of their properties or revenues that
(a) purport to affect or pertain to this Agreement or any other Loan Document,
or any of the transactions contemplated hereby, or (b) either individually or
in the aggregate, if determined adversely, could reasonably be expected to have
a Material Adverse Effect.

 

5.07                        No
Default.

 

Neither the Parent, the borrower nor any of its
Subsidiaries is in default under or with respect to any Contractual Obligation
that could reasonably be expected to have a Material Adverse Effect.  No Default has occurred and is continuing or
would result from the consummation of the transactions contemplated by this
Agreement or any other Loan Document.

 

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5.08                        Ownership
of Property; Liens.

 

Each of the Parent, the Borrower and each of its
Subsidiaries has good record and marketable title in fee simple to, or valid
leasehold interests in, all real property necessary to the conduct of its
business, except for Permitted Liens.

 

5.09                        Environmental Compliance.

 

The Loan Parties conduct in the ordinary course of
business a review of the effect of existing Environmental Laws and claims
alleging potential liability or responsibility for violation of any
Environmental Law on their respective businesses, operations and properties,
and as a result thereof, the Borrower has reasonably concluded that such
Environmental Laws and claims could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

 

5.10                        Taxes.

 

Each of the Parent, the Borrower and its
Subsidiaries have filed all Federal, state and other material tax returns and
reports required to be filed, and have paid all Federal, state and other
material taxes, assessments, fees and other governmental charges levied or
imposed upon them or their properties, income or assets otherwise due and
payable, except those which are being contested in good faith by appropriate
proceedings diligently conducted and for which adequate reserves have been provided
in accordance with GAAP.  There is no
proposed tax assessment against the Parent or any Subsidiary that would, if
made, have a Material Adverse Effect.

 

5.11                        ERISA
Compliance.

 

(a)                                  Except as could not reasonably be expected to
have a Material Adverse Effect, each Plan is in compliance with the applicable
provisions of ERISA, the Code and other Federal or state Laws.  Each Plan that is intended to qualify under Section 401(a)
of the Code has received a favorable determination letter from the IRS or an application
for such a letter is currently being processed by the IRS with respect thereto
and, to the best knowledge of any Loan Party, nothing has occurred which would
prevent, or cause the loss of, such qualification.  Each Loan Party and each ERISA Affiliate have
made all required contributions to each Plan subject to Section 412 of the
Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with
respect to any Plan.

 

(b)                                 There are no pending or, to the best
knowledge of any Loan Party, threatened claims, actions or lawsuits, or action
by any Governmental Authority, with respect to any Plan that could reasonably
be expected to have a Material Adverse Effect. 
There has been no non-exempt prohibited transaction or violation of the
fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect.

 

(c)                                  (i)  No
ERISA Event has occurred or is reasonably expected to occur; (ii) no domestic
Pension Plan has any Unfunded Pension Liability that exceeds $75,000,000
determined in accordance with SFAS No. 35, based on actuarial assumptions and
methods used by the Plan actuaries in the most recent actuarial valuation of
the Plan; (iii) neither the Parent, the Borrower nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability under Title IV of
ERISA with respect to any Pension Plan (other than premiums due and not
delinquent under Section 4007 of ERISA); (iv) neither the Parent, the
Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur,
any liability (and no event has occurred which, with the giving of notice under
Section 4219 of ERISA, would result in such liability) under
Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and
(v)

 

60

 

neither
the Parent, the Borrower nor any ERISA Affiliate has engaged in a transaction
that could be subject to Sections 4069 or 4212(c) of ERISA.

 

5.12                        Subsidiaries.

 

The Domestic Subsidiaries and Foreign Subsidiaries
of the Parent and the Borrower and their respective jurisdictions of
incorporation on the Closing Date shall be as set forth on Schedule 5.12.  The exact legal name of each Loan Party as of
the Closing Date is as set forth on the signature pages hereto.

 

5.13                        Margin Regulations; Investment Company Act; Public Utility
Holding Company Act.

 

(a)                                  No Loan Party is engaged or will engage,
principally or as one of its important activities, in the business of
purchasing or carrying margin stock (within the meaning of Regulation U
issued by the FRB), or extending credit for the purpose of purchasing or
carrying margin stock.

 

(b)                                 None of the Parent or any of its Subsidiaries
(i) is a “holding company,” or a “subsidiary company” of a “holding company,”
or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding
company,” within the meaning of the Public Utility Holding Company Act of 1935,
or (ii) is or is required to be registered as an “investment company” under the
Investment Company Act of 1940.

 

5.14                        Disclosure.

 

No report, financial statement, certificate or other
written information furnished when taken as a whole by any Loan Party to the
Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered
hereunder or under any other Loan Document (in each case, as modified or
supplemented by other information so furnished) when taken as a whole contains
any material misstatement of fact or omits to state any material fact necessary
to make the statements therein, in the light of the circumstances under which
they were made, not materially misleading; provided that, with respect
to projected financial information, the Parent represents only that such
information was prepared in good faith based upon assumptions believed to be
reasonable at the time and the Lenders acknowledge results may differ from the
projected results and such differences may be material.

 

5.15                        Compliance
with Laws.

 

Each of the Parent, the Borrower and its
Subsidiaries is in compliance in all material respects with the requirements of
all Laws and all orders, writs, injunctions and decrees applicable to it or to
its properties, except in such instances in which (a) such requirement of Law
or order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted or (b) the failure to comply
therewith, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

 

5.16                        Intellectual Property; Licenses, Etc.

 

Each of the Parent, the Borrower and its
Subsidiaries own, or possess the right to use, all of the trademarks, service
marks, trade names, copyrights, patent rights and other intellectual property
rights (collectively, “IP Rights”) that are reasonably necessary for the
operation of their respective businesses, without conflict with the rights of
any other Person.

 

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ARTICLE VI

AFFIRMATIVE COVENANTS

 

So long as any Lender shall have any Commitment
hereunder, any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied (other than contingent indemnification obligations not due and
payable), or any Letter of Credit shall remain outstanding, the Parent and the
Borrower shall, and shall cause each of their respective Subsidiaries (except
in the case of the covenants set forth in Sections 6.01, 6.02,
and 6.03) to:

 

6.01                        Financial
Statements.

 

Deliver to the Administrative Agent, in form and
detail reasonably satisfactory to the Administrative Agent:

 

(a)                                  within ninety (90) days after the end of each
Fiscal Year of the Parent, a consolidated balance sheet of the Parent and its
Subsidiaries as at the end of such Fiscal Year, and the related consolidated
statements of income and retained earnings, shareholders’ equity and cash flows
for such Fiscal Year, setting forth in each case in comparative form the
figures for the previous Fiscal Year, all in reasonable detail and prepared in
accordance with GAAP, audited and accompanied by a report and opinion of an
independent certified public accountant of nationally recognized standing
reasonably acceptable to the Administrative Agent, which report and opinion
shall be prepared in accordance with generally accepted auditing standards and
shall not be subject to any “going concern” or like qualification or exception
or any qualification or exception as to the scope of such audit; it being
acknowledged by the parties hereto that delivery of a copy the Parent’s Annual
Report on Form 10-K on or before the date specified above shall satisfy the
requirements of this Section 6.01(a); and

 

(b)                                 within forty-five (45) days after the end of
each of the first three Fiscal Quarters of each Fiscal Year of the Parent, a
consolidated balance sheet of the Parent and its Subsidiaries as at the end of
such Fiscal Quarter, and the related consolidated statements of income and
retained earnings and of cash flows for such Fiscal Quarter and for the portion
of the Parent’s Fiscal Year then ended, setting forth in each case in
comparative form the figures for the corresponding Fiscal Quarter of the
previous Fiscal Year and the corresponding portion of the previous Fiscal Year,
all in reasonable detail and certified by a Responsible Officer of the Parent
as fairly presenting in all material respects the financial condition, results
of operations, changes in cash flows of the Parent and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the
absence of footnotes; it being acknowledged by the parties hereto that delivery
of a copy the Parent’s Quarterly Report on Form 10-Q on or before the date
specified above shall satisfy the requirements of this Section 6.01(b).

 

(c)                                  no later than April 1 of each fiscal
year of the Parent, forecasts prepared by management of the Parent, in form
reasonably satisfactory to the Administrative Agent, of projections of
consolidated income statements, balance sheets and cash flow of the Parent and
its Subsidiaries on an annual basis for the immediately following fiscal year
(including the fiscal year in which the Maturity Date occurs), it being
understood that the form and scope of projections being delivered on the
Closing Date shall be deemed satisfactory for purposes of this section.

 

62

 

As
to any information contained in materials furnished pursuant to Section 6.02(b),
the Borrower shall not be separately required to furnish such information under
clause (a) or (b) above, but the foregoing shall not be in derogation of
the obligation of the Borrower to furnish the information and materials
described in clause (a) and (b) above at the times specified therein.

 

6.02                        Certificates; Other Information.

 

Deliver to the Administrative Agent (who will make
available to the Lenders), in form and detail reasonably satisfactory to the
Administrative Agent:

 

(a)                                  within five Business Days after the delivery
of the financial statements required by Section 6.01, a certificate
signed by a Responsible Officer of the Borrower (i) stating that, to the best
of such Responsible Officer’s knowledge, during such period (A) no Material
Domestic Subsidiary has been formed or acquired (or, if any such Subsidiary has
been formed or acquired, the Borrower has complied with the requirements of Section 6.12
with respect thereto) and (B) to the extent that a pledge of Equity Interests
is required under Section 6.13, stating whether the aggregate
assets of the Excluded First-Tier Foreign Subsidiaries represent more 10% of
the book value of Consolidated Assets as of the last day of the most recently
ended fiscal quarter of the Parent and/or whether the aggregate revenue of the
Excluded First-Tier Foreign Subsidiaries represent more than 10% of the
consolidated revenue of the Parent and its Subsidiaries for the period of four
consecutive fiscal quarters most recently ended and (ii) setting forth, in the
form of the Compliance Certificate, the computation of the financial covenants
in Section 7.10 as of the last day of the fiscal quarter most
recently ended;

 

(b)                                 promptly, after their becoming available,
copies of all proxy statements and all registration statements filed by the
Borrower or the Parent under the Securities Act of 1933, as amended (other than
registration statements on Form S-8 or any registration statement filed in
connection with a dividend reinvestment plan), and regular and periodic
reports, if any, which the Borrower or the Parent shall have filed with the SEC
(or any governmental agency or agencies substituted therefore) under Section 13
or Section 15(d) of the Securities and Exchange Act of 1934, as amended,
or with any national securities exchange (other than those which have already
been delivered pursuant to Section 6.01 or on Form 11-K or any
successor form); provided, that documents required to be delivered under
this clause (c) which are made available on the internet via the EDGAR, or any
successor, system of the SEC shall be deemed delivered when made so available;
and

 

(c)                                  promptly, such additional information
regarding the business, financial or corporate affairs of the Parent, the
Borrower or any Subsidiary, as the Administrative Agent or any Lender may from
time to time reasonably request.

 

Documents required to be delivered pursuant to Section 6.01(a)
or (b) or Section 6.02(b) (to the extent any such documents
are included in materials otherwise filed with the SEC) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on
the date (i) on which the Parent or the Borrower posts such documents; or (ii)
on which such documents are posted on the Parent’s or the Borrower’s behalf on
an Internet or intranet website, if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: (i) the
Borrower shall deliver, or cause to be delivered, paper copies of such
documents to the Administrative Agent or any Lender that requests in writing to
the Borrower to deliver such paper copies until a written request to cease
delivering paper copies is given by the Administrative Agent or such Lender and
(ii) the Parent or the Borrower shall notify (or cause a third party to notify)
the Administrative Agent (by telecopier or electronic mail) of the posting of
any such

 

63

 

documents
and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents. 
Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.02(b) to the Administrative
Agent.  Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by the Parent and the
Borrower with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such
documents.

 

The Parent and the Borrower hereby acknowledges that
(a) the Administrative Agent and/or BAS will make available to the Lenders and
the L/C Issuer materials and/or information provided by or on behalf of the
Parent and the Borrower hereunder (collectively, “Borrower Materials”)
by posting the Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (b) certain of the Lenders may be “public-side”
Lenders (i.e., Lenders that do not wish to
receive material non-public information with respect to the Borrower, the
Parent or its securities) (each, a “Public Lender”).  The Parent and the Borrower hereby agree that
(x) all Borrower Materials that are to be made available to Public Lenders
shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall
mean that the word “PUBLIC” shall appear prominently on the first page thereof;
and (z) the Administrative Agent and BAS shall be entitled to treat any
Borrower Materials that are not marked “PUBLIC” as being suitable only for
posting on a portion of the Platform not designated “Public Investor.”  Notwithstanding the foregoing, the Borrower
shall not be under any obligation to mark any Borrower Materials “PUBLIC.”

 

6.03                        Notices.

 

Upon knowledge of a Responsible Officer, promptly
notify the Administrative Agent:

 

(a)                                  of the occurrence of any Default;

 

(b)                                 of any matter that has resulted or could
reasonably be expected to result in a Material Adverse Effect, including (i)
breach or non-performance of, or any default under, a Contractual Obligation of
the Parent, Borrower or any Subsidiary, (ii) any dispute, litigation,
investigation, proceeding or suspension between the Parent, the Borrower or any
Subsidiary and any Governmental Authority; or (iii) the commencement of, or any
material development in, any litigation or proceeding against or by the Parent,
the Borrower or any Subsidiary, including pursuant to any applicable
Environmental Laws;

 

(c)                                  of the occurrence of any ERISA Event;

 

(d)                                 of any material change in accounting policies
or financial reporting practices by the Parent and its Subsidiaries taken as a
whole; and

 

(e)                                  of any announcement by any Rating Agency of
any change in a Debt Rating.

 

Each notice pursuant to this Section shall be
accompanied by a statement of a Responsible Officer of the Borrower setting
forth details of the occurrence referred to therein and stating what action the
Borrower has taken and proposes to take with respect thereto.

 

64

 

6.04                        Payment
of Obligations.

 

Pay and discharge as the same shall become due and
payable, all material tax liabilities, assessments and governmental charges or
levies upon it or its properties or assets, unless the same are being contested
in good faith by appropriate proceedings diligently conducted and adequate
reserves in accordance with GAAP are being maintained by the Parent or the
applicable Subsidiary.

 

6.05                        Preservation of Existence, Etc.

 

(a) Preserve, renew and maintain in full force
and effect its legal existence and good standing under the Laws of the
jurisdiction of its organization except in a transaction permitted by Section 7.04
or 7.05; (b) take all commercially reasonable action to maintain all
rights, privileges, permits, licenses and franchises necessary in the conduct
of its business, except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect; and (c) preserve or
renew in the ordinary course of business the registration for all of its
material owned and registered patents and trademarks, the non-preservation of
which could reasonably be expected to have a Material Adverse Effect.

 

6.06                        Maintenance of Properties.

 

(a) Maintain, preserve and protect all of its
material properties and equipment necessary in the operation of its business in
good working order and condition, ordinary wear and tear, casualty and
condemnation excepted; and (b) make all necessary repairs thereto and renewals
and replacements thereof except where the failure to do so could not reasonably
be expected to have a Material Adverse Effect.

 

6.07                        Maintenance
of Insurance.

 

Maintain with financially sound and reputable
insurance companies, insurance with respect to its properties and business
against loss or damage of the kinds customarily insured against by Persons
engaged in the same or similar business, of such types and in such amounts as
are customarily carried under similar circumstances by such other Persons.

 

6.08                        Compliance
with Laws.

 

Comply in all material respects with the
requirements of all material Laws and all orders, writs, injunctions and
decrees applicable to it or to its business or property, except in such
instances in which (a) such requirement of Law or order, writ, injunction or
decree is being contested in good faith by appropriate proceedings diligently
conducted; or (b) the failure to comply therewith could not reasonably be
expected to have a Material Adverse Effect.

 

6.09                        Books
and Records.

 

(a)  Maintain
proper books of record and account, in which full, true and correct entries in
conformity with GAAP consistently applied shall be made of all material
financial transactions and matters involving the material assets and business
of the Parent and its Subsidiaries; and (b) maintain such books of record and
account in material conformity with all applicable requirements of any Governmental
Authority having regulatory jurisdiction over the Parent and its Subsidiaries.

 

65

 

6.10                        Inspection
Rights.

 

Permit
representatives of the Administrative Agent to visit and inspect any of its properties
and its books and records (except to the extent any such access is restricted
by a Law) at any reasonable time on a Business Day and as often as may
reasonably be desired and to discuss the business, operations, properties and
financial and other condition of the Parent, the Borrower and its Subsidiaries
with officers and employees of the Parent, the Borrower and its Subsidiaries
and with its independent certified public accountants; provided that the
Administrative Agent or such Lender shall notify the Borrower prior to any
contact with such accountants and give the Borrower the opportunity to
participate in such discussions; provided, further, that so long
as no Default has occurred and is continuing, the Administrative Agent shall be
limited to one inspection in any twelve month period.

 

6.11                        Use of
Proceeds.

 

Use the proceeds of the Credit Extensions for
working capital, Permitted Acquisitions, capital expenditures and other general
corporate purposes (including, without limitation, to refinance existing
Indebtedness of the Borrower under the Existing Credit Agreement on the Closing
Date and to refinance the Indebtedness under the Senior Subordinated Notes) not
in contravention of any Law or of any Loan Document.

 

6.12                        Additional Subsidiary Guarantors.

 

Promptly notify the Administrative Agent after the
time that any Person becomes a Material Domestic Subsidiary, and promptly
thereafter (and in any event within 45 days), cause such Person to (a) become a
Guarantor by executing and delivering to the Administrative Agent a counterpart
of the Joinder Agreement or such other document as the Administrative Agent
shall deem necessary for such purpose, and (b) deliver to the Administrative
Agent documents of the types referred to in clauses (iii) and (iv) of Section 4.01(a)
and to the extent required by the Administrative Agent, favorable opinions of
counsel to such Person (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the documentation referred to in
clause (a)), all in form, content and scope reasonably satisfactory to the
Administrative Agent.

 

6.13                        Pledge of Equity Interests.

 

(a)                                  Within forty-five (45) Business Days
following the Collateral Pledge Effective Date (or such additional time as
deemed necessary by the Administrative Agent in its reasonable discretion), the
Loan Parties shall execute and deliver to the Administrative Agent a pledge
agreement (which shall provide for pledge by each Loan Party of 100% of the
issued and outstanding Equity Interests in each of its Domestic Subsidiaries
and 65% of the total combined voting power of the Equity Interests directly
owned in each of its first tier Foreign Subsidiaries (other than Excluded
First-Tier Foreign Subsidiaries)) and the following agreements, documents and
instruments, each in form, content and scope reasonably satisfactory to the
Administrative Agent:

 

(i)                                     all certificates evidencing the Equity
Interests in the Subsidiaries of each Loan Party pledged pursuant to the pledge
agreement (including, the stock certificates representing the stock of the
Borrower), together with duly executed in blank undated stock powers if
relevant attached thereto;

 

66

 

(ii)                                  duly authorized UCC financing statements for
each appropriate domestic jurisdiction as is necessary, in the Administrative
Agent’s reasonable discretion, to perfect the Lenders’ security interest in
such Equity Interests;

 

(iii)                               certified resolutions and other
organizational and authorizing documents for each such Loan Party; and

 

(iv)                              an opinion of counsel addressed to the
Administrative Agent, on behalf of the Lenders, covering such issues as
reasonably requested by the Administrative Agent, including, without
limitation, the legality, validity, binding effect and enforceability of the
documentation referred to above and the attachment and perfection of the Liens
thereunder.

 

(b)                                 If at any time any Loan Party is required to
provide a Lien with respect to any Equity Interests of any of its Domestic Subsidiaries
and/or first tier Foreign Subsidiaries (other than Excluded First-Tier Foreign
Subsidiaries) to the holders of the Indebtedness permitted to be secured
hereunder, the Borrower shall cause such Persons to provide the Administrative
Agent, on the behalf of the Lenders, with an equal and ratable lien in such
Equity Interests pursuant to a pledge agreement and other documents in form,
content and scope reasonably satisfactory to the Administrative Agent
identified in Section 6.13(a) above at the same time the Borrower
and such other Persons provide a Lien on such Equity Interests to the holders
of such Indebtedness permitted to be secured hereunder.  The Borrower agrees that the Liens
contemplated by the preceding sentence may not be granted until such time as
the Lenders have entered into a satisfactory intercreditor agreement with the
holders of the Indebtedness permitted to be secured hereunder.

 

(c)                                  At all times following a Collateral
Pledge Effective Date and prior to any Collateral Pledge Release, with respect
to any Equity Interests of any newly created or acquired Domestic Subsidiary or
newly created or acquired first-tier Foreign Subsidiary (other than an Excluded
First-Tier Foreign Subsidiary) acquired by any Loan Party that is intended to be
subject to the Lien created by the pledge agreement (as described in Section 6.13(a))
but which is not so subject, promptly (and in any event within thirty (30) days
after the acquisition, creation or issuance thereof): (i) execute and deliver
to the Administrative Agent such amendments to the pledge agreement or such
other documents as the Administrative Agent shall reasonably deem necessary to
grant to the Administrative Agent, for the benefit of the holders of the
Obligations, a Lien on such Equity Interests (provided that, in no event, shall
any Loan Party be required to pledge more than 65% of the total voting power of
the Equity Interests in any directly owned first tier Foreign Subsidiary), (ii)
take all actions necessary or advisable to cause such Lien to be duly perfected
in accordance with applicable Law, including delivering all such original stock
certificates, if any, evidencing such Equity Interests to the Administrative
Agent together with undated stock powers executed in blank therefor, and (iii)
if reasonably requested by the Administrative Agent or the Required Lenders,
deliver to the Administrative Agent legal opinions relating to the matters
described in clauses (i) and (ii) immediately preceding, which opinions shall
be in form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent.

 

(d)                                 Promptly (and in any event within 20
Business Days) following any Collateral Pledge Release Date, the Administrative
Agent shall take all action reasonably necessary to release its Lien on the
Collateral covered by the Collateral Pledge Documents, including, without
limitation, return of stock certificates and stock powers and filing of UCC
termination statements, all at the Borrower’s expense.

 

6.14                        Pledge of Real and Personal Property.

 

(a)                                  Within forty-five (45) Business Days
following the Real and Personal Property Collateral Effective Date (or such
additional time as deemed necessary by the Administrative Agent in its
reasonable

 

67

 

discretion), the Loan Parties will cause all
of its owned real and personal property (other than Excluded Property) to be
subject at all times to first priority (subject to Permitted Liens), perfected
and, in the case of owned real property, title insured Liens in favor of the
Administrative Agent pursuant to the following agreements, documents and
instruments, each in form, content and scope reasonably satisfactory to the
Administrative Agent:

 

(i)                                     duly executed Real and Personal Property
Collateral Documents, necessary, in the Administrative Agent’s reasonable
discretion, to perfect the Lenders’ security interest in such real and personal
property (other than Excluded Property);

 

(ii)                                  copies of recent ALTA surveys by registered
engineers or land surveyors (including the location of special flood hazard
areas); provided, however, if any such survey is dated earlier
than sixty (60) days prior to the Real and Personal Property Collateral
Effective Date, a survey endorsement to the Lenders’ title insurance policy
covering such property depicted by the ALTA survey shall be deemed sufficient;

 

(iii)                               standard ALTA title insurance polices (which
may be in the form of a mark up to a pro forma of an applicable commitments for
such title policies) ensuring the priority of the mortgages in amounts and from
title insurance companies acceptable to the Administrative Agent.  The title policies shall include only
Permitted Liens and such other exceptions as are reasonably acceptable to the
Administrative Agent.  Copies of recorded
documentation relating to all such exceptions shall be provided to the
Administrative Agent within a reasonable time after delivery of final title
insurance policies;

 

(iv)                              copies of existing environmental reports and
other environmental documentation.

 

(v)                                 duly authorized UCC financing statements for
each appropriate domestic jurisdiction as is necessary, in the Administrative
Agent’s reasonable discretion, to perfect the Lenders’ security interest in
such personal property;

 

(vi)                              certified resolutions and other
Organizational Documents for each such Loan Party; and

 

(vii)                           an opinion of counsel addressed to the
Administrative Agent, on behalf of the Lenders, covering such issues as
reasonably requested by the Administrative Agent, including, without
limitation, the legality, validity, binding effect and enforceability of the
documentation referred to above and the attachment and perfection of the Liens
thereunder.

 

(b)                                 At all times following a Real and
Personal Property Collateral Effective Date and prior to any Real and Personal
Property Collateral Release Date, with respect to any real and personal
property (other than Excluded Property) acquired by any Loan Party that is
intended to be subject to the Real and Personal Property Collateral Documents
(as described in Section 6.14(a)) but which is not so subject,
promptly (and in any event within thirty (30) Business Days after the
acquisition, creation or issuance thereof): (i) execute and deliver to the
Administrative Agent such Real and Personal Property Collateral Documents or
such amendments or other documents as the Administrative Agent shall deem
necessary in its reasonable discretion to grant to the Administrative Agent,
for the benefit of the holders of the Obligations, a Lien on such real and
personal property (other than Excluded Property), and (ii) if reasonably
requested by the Administrative Agent or the Required Lenders, deliver to the
Administrative Agent legal opinions relating to the matters described in
clauses (i) and (ii) immediately preceding, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

 

68

 

(c)                                  Promptly (and in any event within 20
Business Days) following any Real and Personal Property Collateral Release
Date, the Administrative Agent shall take all action reasonably necessary to
release its Lien on the property covered by the Real and Personal Property
Collateral Documents, it being understood that, notwithstanding the foregoing,
any such Lien release shall be effective as of the Real and Personal Property
Collateral Release Date and any grant and any release of any security interest
in Equity Interests owned by the Loan Parties shall be governed by Section 6.13
hereof.

 

ARTICLE VII

NEGATIVE COVENANTS

 

So long as any Lender shall have any Commitment
hereunder, any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied (other than contingent indemnification obligations not due and
payable), or any Letter of Credit shall remain outstanding, neither the Parent
nor the Borrower shall, nor shall they permit any of their respective
Subsidiaries to, directly or indirectly:

 

7.01                        Liens.

 

Create, incur, assume or suffer to exist any Lien
upon any of its property, assets or revenues, whether now owned or hereafter
acquired, other than the following (each a “Permitted Lien”):

 

(a)                                  Liens pursuant to any Loan Document;

 

(b)                                 Liens existing on the date hereof and listed
on Schedule 7.01 and any renewals or extensions thereof, provided
that (i) the amount secured or benefited thereby is not increased and (ii) any
renewal or extension of the obligations secured or benefited thereby is
permitted by Section 7.03(b);

 

(c)                                  Liens for taxes not yet due or which are being
contested in good faith and by appropriate proceedings diligently conducted, if
adequate reserves with respect thereto are maintained on the books of the
applicable Person in accordance with GAAP;

 

(d)                                 landlords’, carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s, customs, bankers’ and other depository
institutions’ or other like Liens arising in the ordinary course of business or
which are being contested in good faith and by appropriate proceedings
diligently conducted, if adequate reserves with respect thereto are maintained
on the books of the applicable Person;

 

(e)                                  pledges or deposits in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and
other social security legislation, other than any Lien imposed by ERISA;

 

(f)                                    deposits to secure the performance of bids,
trade contracts and leases (other than Indebtedness), statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business;

 

(g)                                 easements, rights-of-way, restrictions and
other similar encumbrances or charges affecting real property which, in the
aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or materially
interfere

 

69

 

with the ordinary conduct of the business of the
applicable Person or as set forth in the applicable Lender’s title policy or
title commitment for the property;

 

(h)                                 Liens securing judgments for the payment of
money not constituting an Event of Default under Section 8.01(h);

 

(i)                                     Liens securing Indebtedness permitted under Section 7.03(d);
provided that (i) such Liens do not at any time encumber any property
other than the property financed by such Indebtedness and (ii) the Indebtedness
secured thereby does not exceed the cost plus transaction fees or fair market
value, whichever is lower, of the property being acquired on the date of
acquisition;

 

(j)                                     Liens on property or assets
acquired pursuant to a Permitted Acquisition, or on property or assets of a
Subsidiary of the Borrower in existence at the time such Subsidiary is acquired
pursuant to a Permitted Acquisition, provided that (i) any Indebtedness
that is secured by such Liens is permitted to exist under Section 7.03(k),
(ii) the aggregate principal amount of Indebtedness secured by such Liens does
not exceed $25,000,000, and (iii) such Liens do not attach to any other asset
of the Parent, the Borrower or any of their Subsidiaries;

 

(k)                                  Liens on the assets of non-Loan
Parties (including the assets of Foreign Subsidiaries of the Parent); provided
that the value of all property subject to such Liens does not exceed
$100,000,000 in the aggregate at any time;

 

(l)                                     Liens on any interest of the
Borrower or any of its Subsidiaries in the equipment, accounts receivable or
other assets subject to any Vendor Financing Program or any Securitization
Transaction permitted hereunder;

 

(m)                               licenses, leases, subleases and sublicenses
granted (including the license or sublicense of IP Rights) in the ordinary
course of business;

 

(n)                                 Liens arising from precautionary UCC
financing statement filings regarding operating leases entered into by the
Borrower or any of its Subsidiaries in the ordinary course of business;

 

(o)                                 Pledges or deposits of cash and cash
equivalents securing deductibles, self-insurance, co-payment, co-insurance,
retentions and similar obligations to providers of insurance in the ordinary
course of business;

 

(p)                                 Liens on (i) incurred premiums, dividend and
rebates which may become payable under insurance policies and loss payments
which reduce the incurred premiums on such insurance policies and (ii) rights
which may arise under state insurance guarantee funds relating to any such
insurance policy, in each case securing Indebtedness permitted to be incurred
hereunder; and

 

(q)                                 additional Liens incurred by the Parent, the
Borrower and their respective Subsidiaries, so long as the value of the
property subject to such Liens, and the Indebtedness and other obligations
secured thereby, do not in the aggregate exceed 10% of Consolidated Assets as
of the end of the immediately preceding fiscal quarter of the Parent at the
time of incurrence.

 

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7.02                        Investments.

 

Make any Investments, except:

 

(a)                                  Investments held by the Parent and its
Subsidiaries in the form of cash, cash equivalents or Foreign Cash Equivalents;

 

(b)                                 Investments of (i) the Borrower in any
Guarantor and Investments of any Guarantor in the Borrower or in another
Guarantor and (ii) any non-Loan Party in any other non-Loan Party;

 

(c)                                  advances to officers, directors and employees
of the Parent and its Subsidiaries in an aggregate amount not to exceed $5,000,000
at any time outstanding, for travel, entertainment, relocation and analogous
ordinary business purposes;

 

(d)                                 Investments consisting of extensions of
credit in the nature of accounts receivable or notes receivable arising from
the grant of trade credit or leases in the ordinary course of business, and
Investments received in satisfaction or partial satisfaction thereof from
financially troubled account debtors to the extent reasonably necessary in
order to prevent or limit loss;

 

(e)                                  Guarantees permitted by Section 7.03;

 

(f)                                    Permitted Acquisitions;

 

(g)                                 Investments in existence on the Closing Date
to Foreign Subsidiaries listed on Part A of Schedule 7.02 and any
refinancings, refundings, recharacterizations (including, without limitation,
cash capital contributions and the capitalization or forgiveness of
intercompany indebtedness), renewals or extensions thereof; provided
that the amount of such cash Investments are not increased to an amount greater
than the aggregate cash amount set forth on Part A of Schedule 7.02 during the term of this Agreement;

 

(h)                                 other Investments in existence on the Closing
Date and listed on Part B of Schedule 7.02;

 

(i)                                     Investments obtained in connection with any
Vendor Financing Program or any Securitization Transaction permitted hereunder;

 

(j)            Investments consisting of current trade and customer
accounts receivable for goods furnished or services rendered in the ordinary
course of business and payable in accordance with customary trade terms;

 

(k)           Investments consisting of advances and prepayments to
suppliers for goods and services in the ordinary course of business;

 

(l)            Investments consisting of cash, currency or a credit
balance in a deposit account;

 

(m)          Investments consisting of deposits to secure the
performance of leases; and

 

(n)                                 other Investments, including Investments by
Loan Parties in non-Loan Parties; provided, however, that, to the
extent the Consolidated Leverage Ratio prior to and after giving effect to any
such Investment is greater than or equal to 2.25 to 1.0, the aggregate
outstanding

 

71

 

principal amount of all Investments made pursuant to
this clause (n) shall not exceed an aggregate amount equal to the sum of
$250,000,000 increased or decreased on a cumulative basis as of the end of each
fiscal quarter of the Parent, commencing with the fiscal quarter ending June 30,
2005, by an amount equal to 50% of Consolidated Net Income for the fiscal
quarter then ended.

 

7.03                        Indebtedness.

 

Create, incur, assume or suffer to exist any
Indebtedness, except:

 

(a)                                  Indebtedness under the Loan Documents;

 

(b)                                 Indebtedness outstanding on the date hereof
and listed on Schedule 7.03 and any refinancings, refundings,
renewals or extensions thereof; provided that the amount of such
Indebtedness is not increased at the time of such refinancing, refunding,
renewal or extension except by an amount equal to a reasonable premium or other
reasonable amount paid, and fees and expenses reasonably incurred, in
connection with such refinancing and by an amount equal to any existing
commitments unutilized thereunder;

 

(c)                                  obligations (contingent or otherwise) of any
Loan Party existing or arising under any Swap Contract, provided that
(i) such obligations are (or were) entered into by such Person in the ordinary
course of business for the purpose of directly mitigating risks associated with
liabilities, commitments, investments, assets, or property held or reasonably
anticipated by such Person, or changes in the value of securities issued by
such Person, and not for purposes of speculation or taking a “market view;” and
(ii) such Swap Contract does not contain any provision exonerating the non-defaulting
party from its obligation to make payments on outstanding transactions to the
defaulting party;

 

(d)                                 Indebtedness in respect of capital leases,
Synthetic Lease Obligations and purchase money obligations for fixed or capital
assets within the limitations set forth in Section 7.01(i); provided,
however, that the aggregate amount of all such Indebtedness at any one
time outstanding shall not exceed $150,000,000;

 

(e)                                  Indebtedness constituting intercompany loans
to the extent permitted by Sections 7.02(g), 7.02(h) and 7.02(n);

 

(f)                                    Indebtedness of non-Loan Parties (including
Foreign Subsidiaries of the Parent);  provided
that the aggregate amount of such Indebtedness shall not exceed $100,000,000 at
any time;

 

(g)                                 Indebtedness of the Borrower or any of its
Subsidiaries arising in the ordinary course of business of the Borrower or such
Subsidiary and owing to a financial institution providing netting services or
pooling arrangements to the Borrower and its Subsidiaries, provided that
with respect to netting services (i) such Indebtedness was incurred in respect
of the provision of such netting services with respect to intercompany
Indebtedness permitted to be made pursuant to this Agreement and (ii) such
Indebtedness does not remain outstanding for more than three (3) Business Days
from the date of its incurrence;

 

(h)                                 Indebtedness of the Loan Parties incurred
under the Senior Subordinated Notes and the other Senior Subordinated Note
Documents;

 

72

 

(i)                                     unsecured Indebtedness (including
Indebtedness in the form of Guaranties) of the Borrower or any Guarantor;

 

(j)                                     Indebtedness in connection with any Vendor
Financing Program or any Securitization Transaction permitted hereunder;

 

(k)                                  Indebtedness issued and outstanding on or
prior to the date on which the property or assets of a Subsidiary of the Borrower
was acquired in a transaction constituting a Permitted Acquisition, and any
extension, renewal or replacement thereof, provided that the total of
all such Indebtedness for all such Persons taken together shall not exceed an
aggregate principal amount of $25,000,000 at any one time outstanding; and

 

(l)                                     other secured Indebtedness (including
Indebtedness in the form of a Guaranty) of the Parent, the Borrower and their
respective Subsidiaries, in an aggregate amount at any one time outstanding,
together with the aggregate amount of Indebtedness secured by Liens permitted
by Section 7.01(q), not to exceed 10% of Consolidated Assets on a
pro forma basis as of the end of the immediately preceding fiscal quarter of
the Parent at the time of incurrence.

 

provided, that, with respect to Indebtedness incurred pursuant to clauses (i)
and (l) above, prior to and after giving effect to the incurrence of any such
Indebtedness, (i) no Default shall have occurred and be continuing and (ii) the
Loan Parties shall be in pro forma compliance with the financial covenants set
forth in Section 7.10.

 

7.04                        Fundamental
Changes.

 

Merge, dissolve, liquidate, consolidate with or into
another Person, or Dispose of (whether in one transaction or in a series of
related transactions) all or substantially all of its assets (whether now owned
or hereafter acquired) to or in favor of any Person, except that:

 

(a)                                  any Subsidiary may merge with (i) the
Borrower, provided that the Borrower shall be the continuing or
surviving Person, or (ii) any one or more other Subsidiaries, provided
that when any Guarantor is merging with another Subsidiary, the Guarantor shall
be the continuing or surviving Person (except with respect to a merger of the
Parent and the Borrower, in which case, the Borrower shall be the continuing or
surviving Person);

 

(b)                                 any Subsidiary of the Borrower may Dispose of
all or substantially all of its assets (upon voluntary liquidation or
otherwise) to the Borrower or to another Subsidiary of the Borrower; provided
that if the transferor in such a transaction is a Guarantor, then the
transferee must either be the Borrower or a Guarantor;

 

(c)                                  so long as no Default exists or would result
therefrom, any Subsidiary of the Borrower may merge with or consolidated with
any Person in connection with (i) a Permitted Acquisition; provided that
if the acquirer is a Loan Party, then the Loan Party shall be the continuing or
surviving Person or (ii) any Disposition permitted by Section 7.05;
and

 

(d)                                 so long as no Default exists or would result
therefrom, any Subsidiary of the Borrower may liquidate or dissolve or the
Parent or any Subsidiary may sell, transfer, lease or otherwise Dispose of the
assets or Equity Interests of any Subsidiary if, in each case, the Borrower
determines in good faith that such liquidation, dissolution, sale, transfer,
lease or other Disposition is in the best interests of the Borrower and is not
disadvantageous to the Lenders (it being understood that any reorganization,
liquidation, dissolution, transfer, or other Disposition (a

 

73

 

 “Reorganization”)
shall not be deemed disadvantageous to the Lenders solely due to the fact that
such Reorganization results in or causes the release of Collateral otherwise
obtained pursuant to Section 6.13 or Section 6.14).

 

7.05                        Dispositions.

 

Make any Disposition or enter into any agreement to
make any Disposition, except:

 

(a)                                  Dispositions of obsolete or worn out
property, whether now owned or hereafter acquired, in the ordinary course of
business;

 

(b)                                 Dispositions of inventory in the ordinary
course of business;

 

(c)                                  Dispositions of equipment or real property to
the extent that (i) such property is exchanged for credit against the purchase
price of similar replacement property or (ii) the proceeds of such Disposition
are within 270 days applied to the purchase price of such replacement property;

 

(d)                                 Dispositions of property by any Subsidiary to
the Borrower or to another Subsidiary; provided that if the transferor
of such property is a Guarantor, the transferee thereof must either be the
Borrower or a Guarantor;

 

(e)                                  the Borrower and its Domestic Subsidiaries
may transfer assets (other than inventory) to Foreign Subsidiaries, so long as
the aggregate fair market value of all such assets so transferred (determined
in good faith by the Board of Directors or senior management of the Borrower)
to all such Foreign Subsidiaries on and after the Closing Date does not exceed
in the aggregate an amount equal to 5% of Consolidated Assets as of the end of
the immediately preceding fiscal quarter of the Parent;

 

(f)                                    the Borrower and any of its Subsidiaries may
effect Seeded Instrument Sales in connection with its Vendor Financing Program
and effect the other transactions contemplated by the definition of Vendor
Financing Program, so long as the aggregate outstanding amount of capitalized
lease obligations under Seeded Instrument Transactions effected pursuant to
this clause (e) shall not exceed $150,000,000 at any time;

 

(g)                                 Dispositions permitted by Sections 7.02
and 7.04;

 

(h)                                 Dispositions consisting of leases, subleases,
licenses and sublicenses (including the license or sublicense of IP Rights) in
the ordinary course of business;

 

(i)                                     Dispositions pursuant to any Securitization
Transaction permitted hereunder;

 

(j)                                     Dispositions of defaulted receivables or
similar instruments in the ordinary course of business and not part of a
factoring transactions;

 

(k)                                  Dispositions pursuant to any factoring
transaction; and

 

(l)                                     Dispositions by the Parent and its
Subsidiaries not otherwise permitted under this Section 7.05; provided
that (i) at the time of such Disposition, no Default shall exist or would
result from such Disposition and (ii) the aggregate book value of all property
Disposed of in reliance on this clause (h) during the term of this
Agreement shall not exceed 10% of

 

74

 

Consolidated Assets as of the end of the immediately
preceding fiscal quarter of the Parent at the time of incurrence.

 

7.06                        Restricted
Payments.

 

Declare or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so,
except that:

 

(a)                                  each Subsidiary of the Parent may make
Restricted Payments to any Loan Party or to any Wholly Owned Subsidiary of the
Borrower;

 

(b)                                 each Subsidiary of the Parent may declare and
make dividend payments or other distributions payable solely in the common
stock or other common Equity Interests of such Person;

 

(c)                                  each Subsidiary of the Parent may purchase,
redeem, retire, acquire or otherwise make any payment on account of any return
of capital in respect of directly or indirectly, any of its Equity Interests;

 

(d)                                 each Subsidiary of the Parent may purchase,
redeem or otherwise acquire Equity Interests issued by it with the proceeds
received from the substantially concurrent issue of new shares of its common
stock or other common Equity Interests;

 

(e)                                  any Subsidiary of the Parent may pay cash
dividend payments to its shareholders generally so long as the Borrower or its
respective Subsidiary which owns the Equity Interest in the Subsidiary paying
such dividend payment receives at least its proportionate share thereof (based
upon its relative holding of the Equity Interests in the Subsidiary paying such
dividend payment and taking into account the relative preferences, if any, of
the various classes of Equity Interests of such Subsidiary);

 

(f)                                    so long as no Default shall have occurred and
be continuing or would result therefrom, the Loan Parties may repurchase,
redeem or make such other acquisition or retirement for value of any Equity
Interests of the Parent held by any current or former employees of, or current
of former members of, the management of such Loan Party pursuant to any
management equity subscription agreement, employment agreement or stock option
agreement; provided, that the aggregate amount of all such repurchases,
redemptions, acquisitions or retirements for value of Equity Interests pursuant
to this clause (f) shall not exceed $5,000,000 in the aggregate following the
Closing Date.

 

(g)                                 so long as no Default shall have occurred and
be continuing at the time of any action described below or would result
therefrom, the Parent may declare and make cash dividend payments or other
distributions with respect to the redemption, retirement, purchase or other
acquisition of the capital stock of the Parent or the Borrower (or any warrant,
option or other rights with respect to any shares of capital stock (including
common or preferred) now or hereafter outstanding of the Parent or the
Borrower) so long as upon giving effect to such Restricted Payment on a pro
forma basis as though it had occurred on the first day of the relevant
calculation period, the Loan Parties shall be in compliance with each of the
financial covenants set forth in Section 7.10.

 

75

 

7.07                        Change in Nature of Business.

 

Engage in any material line of business substantially
different from those lines of business conducted by any of the Loan Parties on
the date hereof or any business related, ancillary, supportive supplementary,
complimentary or incidental thereto.

 

7.08                        Transactions with Affiliates.

 

Enter into any transaction of any kind with any
Affiliate of the Parent, whether or not in the ordinary course of business,
other than on fair and reasonable terms substantially as favorable to the
applicable Loan Party as would be obtainable by such Loan Party at the time in
a comparable arm’s length transaction with a Person other than an Affiliate,
provided that the foregoing restriction shall not apply to transactions between
or among the Loan Parties and the following shall in any event be permitted:
(i) the Parent and the Borrower and its Subsidiaries may make any payments
required under the “Holdings Tax
Allocation Agreement”, (ii) the
transactions contemplated by the documents governing the Vendor Financing
Program, (iii) transactions permitted by this Agreement, (iv) normal
compensation, indemnities and reimbursement of reasonable expenses of officers
and directors (including stock incentive option plans and agreements related
thereto) and (v) transactions set forth on Schedule 7.08.

 

7.09                        Use of
Proceeds.

 

Use the proceeds of any Credit Extension, whether
directly or indirectly, and whether immediately, incidentally or ultimately, to
purchase or carry margin stock (within the meaning of Regulation U of the
FRB) or to extend credit to others for the purpose of purchasing or carrying
margin stock or to refund indebtedness originally incurred for such purpose.

 

7.10                        Financial
Covenants.

 

(a)                                  Consolidated Interest Coverage Ratio. 
Permit the Consolidated Interest Coverage Ratio as of the end of any
fiscal quarter of the Parent to be less than 3.00 to 1.00.

 

(b)                                 Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of
the end of any fiscal quarter of the Parent to be greater than 3.00 to 1.00.

 

7.11                        Modifications of Subordinated Indebtedness; Limitation on
Voluntary Prepayments of Subordinated Indebtedness.

 

(a)                                  The Parent will not, and will not permit any
of its Subsidiaries to, after the issuance thereof, amend or modify (or permit
the amendment or modification of) any of the terms of any subordinated
Indebtedness permitted under Section 7.03(h)
hereunder, including without limitation the Senior Subordinated Notes, in a
manner adverse to the Lenders.

 

(b)                                 The Parent will not, and will not permit any
of its Subsidiaries to, make any voluntary or optional payment or prepayment on
or redemption, repurchase or acquisition for value of any Senior Subordinated
Notes; provided, the Borrower shall be permitted to may make voluntary
redemptions of outstanding Senior Subordinated Notes to the extent that both
immediately before and immediately after giving effect to any such payment or
prepayment of the Senior Subordinated Notes, the Total Outstandings do not
exceed an amount equal to the Aggregate Commitments minus $100,000,000.

 

76

 

7.12                        Designated
Senior Debt.

 

The Parent will
not, and will not permit any of its Subsidiaries to (i) designate any
Indebtedness (other than the Obligations) as “Designated Senior Debt” for
purposes of, and as defined in, the Senior Subordinated Note Indenture or (ii)
designate any documents with respect to any Indebtedness (other than this
Agreement) as the “Bank Credit Agreement” as defined in the Senior Subordinated
Note Indenture for purposes of the receipt of notices by the Administrative
Agent and delivery of blockage notices pursuant to the subordination provisions
of the Senior Subordinated Note Documents.

 

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

 

8.01                        Events
of Default.

 

Any of the following shall constitute an Event of
Default:

 

(a)                                  Non-Payment.  The Borrower or any other Loan
Party fails to pay (i) when and as required to be paid herein, and in the
currency required hereunder, any amount of principal of any Loan or any L/C
Obligation, or (ii) within five days after the same becomes due, any
interest on any Loan or on any L/C Obligation, or any fee due hereunder, or
(iii) within five days after the same becomes due, any other amount payable
hereunder or under any other Loan Document; or

 

(b)                                 Specific Covenants.  Any
Loan Party fails to perform or observe any term, covenant or agreement
contained in any of (i) Section 6.05 (as it relates to the Borrower’s
existence) or 6.11, Article VII or Article XI or
(ii) Section 6.01, 6.02, 6.03, 6.10, 6.12,
6.13 or 6.14, and such failure continues for 10 days; or

 

(c)                                  Other Defaults.  Any
Loan Party fails to perform or observe any other covenant or agreement (not
specified in subsection (a) or (b) above) contained in any Loan Document
on its part to be performed or observed and such failure continues for 30 days
from the date that is the earlier of (i) the date a Responsible Officer
becoming aware of such failure and (ii) the date a Responsible Officer has
received written notice from the Administrative Agent; or

 

(d)                                 Representations and Warranties.  Any
representation, warranty, certification or statement of fact made or deemed
made by or on behalf of the Borrower or any other Loan Party herein, in any
other Loan Document, or in any document delivered in connection herewith or
therewith shall be incorrect or misleading in any material respect when made or
deemed made; or

 

(e)                                  Cross-Default.  (i)
Any Loan Party (A) fails to make any payment when due, beyond the applicable
grace periods, (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee
(other than Indebtedness hereunder, Indebtedness under Swap Contracts and
Indebtedness under any Vendor Financing Program) having an aggregate principal
amount (including undrawn committed or available amounts and including amounts
owing to all creditors under any combined or syndicated credit arrangement) of
more than the Threshold Amount, or (B) fails to observe or perform any other
agreement or condition, beyond the applicable grace periods, relating to any
such Indebtedness or Guarantee or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, the effect
of which default or other event is to

 

77

 

cause, or to permit the holder or holders of such
Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a
trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased, prepaid,
defeased or redeemed (automatically or otherwise), or an offer to repurchase,
prepay, defease or redeem such Indebtedness to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in respect
thereof to be demanded (it being understood that any waiver of such default
described in this clause (B) by the holder or holders of such Indebtedness
shall constitute a waiver of any Event of Default under this clause (B) caused
by such cross default); or (ii) there occurs under any Swap Contract an Early
Termination Date (as defined in such Swap Contract) resulting from (A) any
event of default under such Swap Contract as to which the Borrower or any
Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B)
any Termination Event (as so defined) under such Swap Contract as to which the
Borrower or any Subsidiary is an Affected Party (as so defined) and, in either
event, the Swap Termination Value owed by the Borrower or such Subsidiary as a
result thereof is greater than the Threshold Amount; or

 

(f)                                    Insolvency Proceedings, Etc.  Any
Loan Party or any of their respective material Subsidiaries (it being understood that with respect to the
Subsidiaries collectively deemed immaterial pursuant to this clause (f), in no
case shall the aggregate amount of the assets of such Subsidiaries (determined
immediately prior to each such insolvency proceeding) represent more than 0.50%
of the Consolidated Assets as of the end of the immediately preceding fiscal
quarter of the Parent) institutes or consents to the institution of any
proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or
any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or

 

(g)                                 Inability to Pay Debts; Attachment.  (i)
Any Loan Party becomes unable or admits in writing its inability or fails
generally to pay its debts as they become due, or (ii) any writ or warrant of
attachment or execution or similar process is issued or levied against all or
any material part of the property of any such Person and is not released,
vacated or fully bonded within 60 days after its issue or levy; or

 

(h)                                 Judgments.  There is entered against any
Loan Party (i) a final judgment or order for the payment of money in an
aggregate amount exceeding the Threshold Amount (to the extent not covered by
independent third-party insurance as to which the insurer does not dispute
coverage), or (ii) any one or more non-monetary final judgments that have, or
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect and, in either case, (A) enforcement proceedings are
commenced by any creditor upon such judgment or order, or (B) there is a period
of 60 consecutive days during which a stay of enforcement of such judgment, by
reason of a pending appeal or otherwise, is not in effect; or

 

(i)                                     ERISA.  (i) An ERISA Event occurs with
respect to a Pension Plan or Multiemployer Plan which has resulted or could
reasonably be expected to result in liability of the Borrower under
Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in
an aggregate amount in excess of $75,000,000 determined in accordance with SFAS
No. 35,

 

78

 

based on actuarial assumptions and methods used by
the Plan actuaries in the most recent actuarial valuation of the Plan, or (ii)
the Borrower or any ERISA Affiliate fails to pay when due, after the expiration
of any applicable grace period, any installment payment with respect to its
withdrawal liability under Section 4201 of ERISA under a Multiemployer
Plan in an aggregate amount in excess of the Threshold Amount; or

 

(j)                                     Invalidity of Loan Documents.  Any
Loan Document, at any time after its execution and delivery and for any reason
other than as expressly permitted hereunder or satisfaction in full of all the
Obligations (other than contingent indemnity obligations), ceases to be in full
force and effect; or any Loan Party contests or any other Person successfully
contests in any manner the validity or enforceability of any Loan Document; or
any Loan Party denies that it has any or further liability or obligation under
any Loan Document, or purports to revoke, terminate or rescind any Loan
Document; or

 

(k)                                  Change of Control. 
There occurs any Change of Control.

 

8.02                        Remedies Upon Event of Default.

 

If any Event of Default occurs and is continuing,
the Administrative Agent shall, at the request of, or may, with the consent of,
the Required Lenders, take any or all of the following actions:

 

(a)                                  declare the commitment of each Lender to make Loans
and any obligation of the L/C Issuer to make L/C Credit Extensions to be
terminated, whereupon such commitments and obligation shall be terminated;

 

(b)                                 declare the unpaid principal amount of all
outstanding Loans, all interest accrued and unpaid thereon, and all other
amounts owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the Borrower;

 

(c)                                  require that the Borrower Cash Collateralize the L/C
Obligations (in an amount equal to the then Outstanding Amount thereof); and

 

(d)                                 exercise on behalf of itself and the Lenders all
rights and remedies available to it and the Lenders under the Loan Documents;

 

provided, however,
that upon the occurrence of an actual order for relief with respect to the
Borrower under the Bankruptcy Code of the United States, the obligation of each
Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions shall automatically terminate, the unpaid principal amount of all
outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable, and the obligation of the Borrower to
Cash Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Administrative Agent or any
Lender.

 

8.03                        Application
of Funds.

 

After the exercise of remedies provided for in Section 8.02
(or after the Loans have automatically become immediately due and payable and
the L/C Obligations have automatically been required to be Cash Collateralized
as set forth in the proviso to Section 8.02), any amounts received
on account of the Obligations shall be applied by the Administrative Agent in
the following order:

 

79

 

First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including reasonable fees, charges and
disbursements of counsel to the Administrative Agent and amounts payable under Article III)
payable to the Administrative Agent in its capacity as such;

 

Second, to payment of that portion of the Obligations constituting fees,
indemnities and other amounts (other than principal, interest and Letter of
Credit Fees) payable to the Lenders and the L/C Issuer (including reasonable
fees, charges and disbursements of counsel to the respective Lenders and the
L/C Issuer and amounts payable under Article III), ratably among
them in proportion to the respective amounts described in this clause Second
payable to them;

 

Third, to payment of that portion of the Obligations constituting accrued
and unpaid Letter of Credit Fees and interest on the Loans, L/C Borrowings and
other Obligations, ratably among the Lenders and the L/C Issuer in proportion
to the respective amounts described in this clause Third payable to
them;

 

Fourth, to payment of that portion of the Obligations constituting unpaid
principal of the Loans and L/C Borrowings, ratably among the Lenders and the
L/C Issuer in proportion to the respective amounts described in this clause Fourth
held by them;

 

Fifth, to the Administrative Agent for the account of the L/C Issuer, to
Cash Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit; and

 

Last, the balance, if any, to the Borrower or as otherwise required by Law.

 

Subject
to Section 2.03(c), amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fifth
above shall be applied to satisfy drawings under such Letters of Credit as they
occur.  If any amount remains on deposit
as Cash Collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Obligations, if
any, in the order set forth above.

 

ARTICLE IX

ADMINISTRATIVE AGENT

 

9.01                        Appointment and Authority.

 

Each of the Lenders and the L/C Issuers hereby
irrevocably appoint Bank of America to act on its behalf as the Administrative
Agent hereunder and under the other Loan Documents and authorizes the
Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental
thereto.  The provisions of this Article are
solely for the benefit of the Administrative Agent, the Lenders and the L/C
Issuers, and neither the Borrower nor any other Loan Party shall have rights as
a third party beneficiary of any of such provisions.

 

9.02                        Rights
as a Lender.

 

The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not the
Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the
Person serving as the Administrative Agent hereunder in its individual
capacity.  Such Person and its Affiliates
may accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business

 

80

 

with the Borrower or any Subsidiary or other Affiliate thereof as if such
Person were not the Administrative Agent hereunder and without any duty to
account therefor to the Lenders.

 

9.03                        Exculpatory
Provisions.

 

The Administrative Agent shall not have any duties
or obligations except those expressly set forth herein and in the other Loan
Documents.  Without limiting the
generality of the foregoing, the Administrative Agent:

 

(a)                                  shall not be subject to any fiduciary or other
implied duties, regardless of whether a Default has occurred and is continuing;

 

(b)                                 shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent is required to exercise as directed in writing by
the Required Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or applicable law; and

 

(c)                                  shall not, except as expressly set forth
herein and in the other Loan Documents, have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to the
Borrower or any of its Affiliates that is communicated to or obtained by the
Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

 

The Administrative Agent shall not be liable for any
action taken or not taken by it (i) with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 11.01
and 8.02) or (ii) in the absence of its own bad faith, gross negligence
or willful misconduct.  The
Administrative Agent shall be deemed not to have knowledge of any Default
unless and until notice describing such Default is given to the Administrative
Agent by the Borrower, a Lender or an L/C Issuer.

 

The Administrative Agent shall not be responsible
for or have any duty to ascertain or inquire into (i) any statement, warranty
or representation made in or in connection with this Agreement or any other
Loan Document, (ii) the contents of any certificate, report or other document
delivered hereunder or thereunder or in connection herewith or therewith,
(iii) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth herein or therein or the occurrence of any
Default, (iv) the validity, enforceability, effectiveness or genuineness of
this Agreement, any other Loan Document or any other agreement, instrument or
document or (v) the satisfaction of any condition set forth in Article V
or elsewhere herein, other than to confirm receipt of items expressly required
to be delivered to the Administrative Agent.

 

9.04                        Reliance by Administrative Agent.

 

The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by

 

81

 

it to have been made by the proper Person, and shall not incur any
liability for relying thereon.  In
determining compliance with any condition hereunder to the making of a Loan, or
the issuance of a Letter of Credit, that by its terms must be fulfilled to the
satisfaction of a Lender or an L/C Issuer, the Administrative Agent may presume
that such condition is satisfactory to such Lender or such L/C Issuer unless
the Administrative Agent shall have received notice to the contrary from such
Lender or such L/C Issuer prior to the making of such Loan or the issuance of
such Letter of Credit.  The
Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

 

9.05                        Delegation
of Duties.

 

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

 

9.06                        Resignation of Administrative Agent.

 

The Administrative Agent may at any time give notice
of its resignation to the Lenders, the L/C Issuers and the Borrower.  Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, with the consent of the
Borrower (not to be unreasonably withheld), to appoint a successor, which shall
be a bank with an office in the United States, or an Affiliate of any such bank
with an office in the United States.  If
no such successor shall have been so appointed by the Required Lenders and
shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders and the L/C Issuers, appoint
a successor Administrative Agent meeting the qualifications set forth above
subject to the consent of the Borrower (not to be unreasonably withheld); provided
that if the Administrative Agent shall notify the Borrower and the Lenders that
no qualifying Person has accepted such appointment or has been approved by the
Borrower and the Lenders, then such resignation shall nonetheless become
effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder and under the other Loan Documents (except that in the case of any
collateral security held by the Administrative Agent on behalf of the Lenders
or the L/C Issuers under any of the Loan Documents, the retiring Administrative
Agent shall continue to hold such collateral security until such time as a
successor Administrative Agent is appointed) and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and each L/C
Issuer directly, until such time as the Required Lenders with the consent of
the Borrower not to be unreasonably withheld or delayed appoint a successor
Administrative Agent as provided for above in this Section.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired) Administrative Agent, and the retiring Administrative
Agent shall be discharged from all of its duties and obligations hereunder or
under the other Loan Documents (if not already discharged therefrom as provided
above in this Section).  The fees payable
by the Borrower to a successor Administrative Agent shall be the same as those
payable to its predecessor unless otherwise agreed between the Borrower and
such successor.  After the retiring
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 10.04
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents

 

82

 

and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while the retiring Administrative Agent was
acting as Administrative Agent.

 

Any resignation by Bank of America as Administrative
Agent pursuant to this Section shall also constitute its resignation as an
L/C Issuer, Domestic Swing Line Lender and Foreign Swing Line Lender.  Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, (a) such successor shall succeed
to and become vested with all of the rights, powers, privileges and duties of
the resigning Administrative Agent as an L/C Issuer, the Domestic Swing Line
Lender and the Foreign Swing Line Lender, (b) the resigning Administrative
Agent shall be discharged from all of its respective duties and obligations as
an L/C Issuer and the Swing Line Lender hereunder or under the other Loan
Documents, and (c) the other L/C Issuers shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such
succession or make other arrangements reasonably satisfactory to the retiring
L/C Issuer to effectively assume the obligations of the retiring L/C Issuer
with respect to such Letters of Credit.

 

9.07                        Non-Reliance on Administrative Agent and Other Lenders.

 

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

 

9.08                        No Other
Duties, Etc.

 

Anything herein to the contrary notwithstanding,
none of the Syndication Agent, Book Managers or Joint Lead Arrangers listed on
the cover page hereof shall have any powers, duties or responsibilities under
this Agreement or any of the other Loan Documents, except in its capacity, as
applicable, as the Administrative Agent, a Lender, an L/C Issuer, Domestic
Swing Line Lender or the Foreign Swing Line Lender hereunder.

 

9.09                        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 any Loan Party, the Administrative
Agent (irrespective of whether the principal of any Loan or L/C Obligation
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 Borrower) 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,
L/C Obligations 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, any L/C Issuer and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders, the L/C Issuers and the Administrative Agent and their
respective agents and counsel and all other amounts due

 

83

 

the Lenders, the L/C Issuers and the
Administrative Agent under Sections 2.03(i) and (j), 2.10
and 10.04) allowed in such judicial proceeding; 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 and each L/C Issuer 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 and the applicable L/C Issuer, 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 2.10
and 11.04.

 

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 or any L/C Issuer 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.

 

9.10                        Collateral and Guaranty Matters.

 

The Lenders, the Domestic Swing Line Lender, the
Foreign Swing Line Lender and the L/C Issuer irrevocably authorize the
Administrative Agent, at its option and in its discretion,

 

(a)                                  to release any Lien on any property granted
to or held by the Administrative Agent under any Loan Document (i) upon
termination of the Aggregate Commitments and payment in full of all Obligations
(other than contingent indemnification obligations) and the expiration or
termination of all Letters of Credit (or the receipt by the L/C Issuer of one
more backstop letters of credit in each case satisfactory to the L/C Issuer in
its reasonable discretion), (ii) that is sold or otherwise transferred or
disposed of, or to be sold, transferred or otherwise disposed of, as part of a
sale, transfer or other disposition (including, without limitation, pursuant to
a merger, consolidation, amalgamation, liquidation, winding up or dissolution)
or other transaction permitted hereunder or under any other Loan Document,
(iii) on any Collateral Pledge Release Date, (iv) on the Real and Personal
Property Collateral Release Date or (v) subject to Section 10.01,
if approved, authorized or ratified in writing by the Required Lenders; and

 

(b)                                 to release any Guarantor from its obligations under the Guaranty if such
Person ceases to be a Subsidiary as a result of a transaction permitted hereunder.

 

ARTICLE X

MISCELLANEOUS

 

10.01                 Amendments, Etc.

 

No amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent to any departure by the
Borrower or any other Loan Party therefrom, shall be effective unless in writing
signed by the Required Lenders and the Borrower or the applicable Loan Party,
as the case may be, and acknowledged by the Administrative Agent, and each such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no such
amendment, waiver or consent shall:

 

84

 

(a)                                  extend or increase the Commitment of any Lender (or
reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

 

(b)                                 postpone any date fixed by this Agreement or
any other Loan Document for any payment of principal, interest, fees or other
amounts due to the Lenders (or any of them) hereunder or under any other Loan
Document without the written consent of each Lender directly affected thereby;

 

(c)                                  reduce the principal of, or the rate of
interest specified herein on, any Loan or L/C Borrowing, or (subject to clause
(v) of the second proviso to this Section 10.01) any fees or other
amounts payable hereunder or under any other Loan Document without the written
consent of each Lender directly affected thereby; provided, however,
that only the consent of the Required Lenders shall be necessary (i) to amend
the definition of “Default Rate” or to waive any obligation of the Borrower to
pay interest or Letter of Credit Fees at the Default Rate or (ii) to amend any
financial covenant hereunder (or any defined term used therein) even if the
effect of such amendment would be to reduce the rate of interest on any Loan or
L/C Borrowing or to reduce any fee payable hereunder;

 

(d)                                 change Section 2.14 or Section 8.03
in a manner that would alter the pro rata sharing of payments required thereby
without the written consent of each Lender;

 

(e)                                  amend the definition of “Alternative Currency”
without the written consent of each Lender;

 

(f)                                    change any provision of this Section or
the definition of “Required Lenders” or any other provision hereof specifying
the number or percentage of Lenders required to amend, waive or otherwise
modify any rights hereunder or make any determination or grant any consent
hereunder without the written consent of each Lender;

 

(g)                                 except as the result of or in connection with
the release of Collateral set forth in Section 6.13 or Section 6.14,
as the case may be, release all or substantially all of the Collateral to the
extent provided hereunder; or

 

(h)                                 except as the result of or in connection with
a dissolution, merger or disposition of a Loan Party not prohibited by Section 7.04 or Section 7.05,
release the Parent, the Borrower or substantially all of the other Loan Parties
from its or their obligations under the Loan Documents (including, their
respective Obligations under Article XI);

 

and,
provided  further, that (i) no amendment, waiver or consent shall,
unless in writing and signed by the L/C Issuer in addition to the Lenders
required above, affect the rights or duties of the L/C Issuer under this
Agreement or any Issuer Document relating to any Letter of Credit issued or to
be issued by it; (ii) no amendment, waiver or consent shall, unless in writing
and signed by the Domestic Swing Line Lender in addition to the Lenders
required above, affect the rights or duties of the Domestic Swing Line Lender
under this Agreement; (iii) no amendment, waiver or consent shall, unless in
writing and signed by the Foreign Swing Line Lender in addition to the Lenders
required above, affect the rights or duties of the Foreign Swing Line Lender
under this Agreement; and (iv) no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Lenders
required above, affect the rights or duties of the Administrative Agent under
this Agreement or any other Loan Document; and (v) Section 10.06(h)
may not be amended, waived or otherwise modified without the consent of each
Granting Lender all or any part of whose Loans are being funded by an SPC at
the time of such

 

85

 

amendment, waiver or other modification.  Notwithstanding anything to the contrary
herein, no Defaulting Lender shall have any right to approve or disapprove any
amendment, waiver or consent hereunder, except that the Commitment of such Lender
may not be increased or extended without the consent of such Lender.

 

10.02                 Notices; Effectiveness; Electronic Communication.

 

(a)                                  Notices Generally. 
Except in the case of notices and other communications expressly
permitted to be given by telephone (and except as provided in subsection (b)
below), all notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopier as follows, and all notices
and other communications expressly permitted hereunder to be given by telephone
shall be made to the applicable telephone number, as follows:

 

(i)                                     if to the Borrower, the Administrative Agent,
the L/C Issuer, the Domestic Swing Line Lender or the Foreign Swing Line
Lender, to the address, telecopier number, electronic mail address or telephone
number specified for such Person on Schedule 10.02; and

 

(ii)                                  if to any other Lender, to the address,
telecopier number, electronic mail address or telephone number specified in its
Administrative Questionnaire.

 

Notices
sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient).  Notices delivered through
electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

 

(b)                                 Electronic Communications. 
Notices and other communications to the Lenders and the L/C Issuer
hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by
the Administrative Agent, provided that the foregoing shall not apply to
notices to any Lender or the L/C Issuer pursuant to Article II if
such Lender or the L/C Issuer, as applicable, has notified the Administrative
Agent that it is incapable of receiving notices under such Article by
electronic communication.  The
Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.

 

Unless the Administrative Agent otherwise
prescribes, (i) notices and other communications sent to an e-mail address
shall be deemed received upon the sender’s receipt of an acknowledgement from
the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement), provided
that if such notice or other communication is not sent during the normal
business hours of the recipient, such notice or communication shall be deemed
to have been sent at the opening of business on the next business day for the
recipient, and (ii) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is available
and identifying the website address therefor.

 

(c)                                  The Platform.  THE
PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY
OF THE

 

86

 

PLATFORM,
AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER
MATERIALS.  NO WARRANTY OF ANY KIND,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM
FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION
WITH THE BORROWER MATERIALS OR THE PLATFORM. 
In no event shall the Administrative Agent or any of its Related Parties
(collectively, the “Agent Parties”) have any liability to the Borrower,
any Lender, the L/C Issuer or any other Person for losses, claims, damages,
liabilities or expenses of any kind (whether in tort, contract or otherwise)
arising out of the Borrower’s or the Administrative Agent’s transmission of
Borrower Materials through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined to have resulted from
the bad faith, gross negligence or willful misconduct of such Agent Party; provided,
however, that in no event shall any Agent Party have any liability to
the Borrower, any Lender, the L/C Issuer or any other Person for indirect,
special, incidental, consequential or punitive damages (as opposed to direct or
actual damages).

 

(d)                                 Change of Address, Etc.  Each
of the Borrower, the Administrative Agent, the L/C Issuer, the Domestic Swing
Line Lender and the Foreign Swing Line Lender may change its address,
electronic mail address, telecopier or telephone
number for notices and other communications hereunder by notice to the other
parties hereto.  Each other Lender may
change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the Borrower, the
Administrative Agent, the L/C Issuer, the Domestic Swing Line Lender and the
Foreign Swing Line Lender.  In addition,
each Lender agrees to notify the Administrative Agent from time to time to
ensure that the Administrative Agent has on record (i) an effective address,
electronic mail address, contact name, telephone number, telecopier number and
electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender.

 

(e)                                  Reliance by Administrative Agent, L/C Issuer
and Lenders.  The Administrative Agent, the L/C Issuer and
the Lenders shall be entitled to rely and act upon any notices (including
telephonic Committed Loan Notices, Domestic Swing Line Loan Notices and Foreign
Swing Line Loan Notices) purportedly given by or on behalf of the Borrower even
if (i) such notices were not made in a manner specified herein, were incomplete
or were not preceded or followed by any other form of notice specified herein,
or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof.  The Borrower shall
indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related
Parties of each of them from all losses, costs, expenses and liabilities
resulting from the reliance by such Person on each notice purportedly given by
or on behalf of the Borrower.  All
telephonic notices to and other telephonic communications with the
Administrative Agent may be recorded by the Administrative Agent, and each of
the parties hereto hereby consents to such recording.

 

10.03                 No Waiver; Cumulative Remedies.

 

No failure by any Lender or the Administrative Agent
to exercise, and no delay by any such Person in exercising, 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.  The
rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

 

10.04                 Expenses; Indemnity; Damage Waiver.

 

(a)                                  Costs and Expenses.  The
Borrower shall pay (i) all reasonable and actual out-of-pocket expenses
incurred by the Administrative Agent and its Affiliates (including the
reasonable fees, charges

 

87

 

and
disbursements of counsel for the Administrative Agent), in connection with the
syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration of this Agreement and the
other Loan Documents or any amendments, modifications or waivers of the
provisions hereof or thereof requested by or for the benefit of the Borrower or
in connection with Sections 6.12, 6.13 and 6.14,
(ii) all reasonable and actual out-of-pocket expenses incurred by the L/C
Issuer in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all actual
out-of-pocket expenses incurred by the Administrative Agent, any Lender or the
L/C Issuer (including the reasonable fees, charges and disbursements of any
counsel for the Administrative Agent, any Lender or the L/C Issuer), in
connection with the enforcement or protection of its rights (A) in
connection with this Agreement and the other Loan Documents, including its
rights under this Section, or (B) in connection with the Loans made or
Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit.

 

(b)                                 Indemnification by the Borrower.  The
Borrower shall indemnify the Administrative Agent (and any sub-agent thereof),
each Lender and the L/C Issuer, and each Related Party of any of the foregoing
Persons involved in this financing (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the reasonable fees,
charges and disbursements of any counsel for any Indemnitee), incurred by any
Indemnitee or asserted against any Indemnitee by any third party or by the
Borrower or any other Loan Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan
Document, the performance by the parties hereto of their respective obligations
hereunder or thereunder, the consummation of the transactions contemplated
hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent
thereof) and its Related Parties only, the administration of this Agreement and
the other Loan Documents, (ii) any Loan or Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by the L/C Issuer
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (iii) any actual or alleged presence or release
of Hazardous Materials on or from any property owned or operated by the
Borrower or any of its Subsidiaries, or any Environmental Liability related in
any way to the Borrower or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by the Borrower or any other Loan Party, and
regardless of whether any Indemnitee is a party thereto; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses (x) have resulted
from the bad faith, gross negligence or willful misconduct of such Indemnitee
or (y) result from a claim brought by the Borrower or any other Loan Party
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document.

 

(c)                                  Reimbursement by Lenders.  To
the extent that the Borrower for any reason fails to pay any amount required
under subsection (a) or (b) of this Section to be paid by it to
the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any
Related Party of any of the foregoing, each Lender severally agrees to pay to
the Administrative Agent (or any such sub-agent), the L/C Issuer or such
Related Party, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the Administrative
Agent (or any such sub-agent) or the L/C Issuer in its capacity as such, or
against any Related Party of any of the foregoing acting for the Administrative
Agent (or any such sub-agent) or L/C Issuer in connection with such
capacity.  The obligations of the Lenders
under this subsection (c) are subject to the provisions of Section 2.13(d).

 

88

 

(d)                                 Waiver of Consequential Damages, Etc.  To
the fullest extent permitted by applicable law, the Borrower shall not assert,
and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan
or Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in subsection (b)
above shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby.

 

(e)                                  Payments.  All amounts due under this Section shall
be payable not later than twenty Business Days after written demand therefore
(together with reasonable back up documentation supporting such reimbursement
request).

 

(f)                                    Survival.  The agreements in this Section shall
survive the resignation of the Administrative Agent and the L/C Issuer, the
replacement of any Lender, the termination of the Aggregate Commitments and the
repayment, satisfaction or discharge of all the other Obligations.

 

10.05                 Payments Set Aside.

 

To the extent that any payment by or on behalf of
the Borrower is made to the Administrative Agent, the L/C Issuer or any Lender,
or the Administrative Agent, the L/C Issuer or any Lender exercises its right
of setoff, and such payment or the proceeds of such setoff or any part thereof
is subsequently invalidated, declared to be fraudulent or preferential, set
aside or required (including pursuant to any settlement entered into by the
Administrative Agent, the L/C Issuer or such Lender in its reasonable
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then
(a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and
effect as if such payment had not been made or such setoff had not occurred,
and (b) each Lender and the L/C Issuer severally agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of
any amount so recovered from or repaid by the Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made
at a rate per annum equal to the applicable Overnight Rate from time to time in
effect, in the applicable currency of such recovery or payment.  The obligations of the Lenders and the L/C
Issuer under clause (b) of the preceding sentence shall survive the
payment in full of the Obligations and the termination of this Agreement.

 

10.06                 Successors and Assigns.

 

(a)                                  Successors and Assigns Generally.  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that no Loan Party may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible
Assignee in accordance with the provisions of subsection (b) of this
Section, (ii) by way of participation in accordance with the provisions of subsection (d)
of this Section, (iii) by way of pledge or assignment of a security interest
subject to the restrictions of subsection (f) of this Section, or (iv) to
an SPC in accordance with the provisions of subsection (h) of this Section (and
any other attempted assignment or transfer by any party hereto shall be null
and void).  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and,
to the

 

89

 

extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

 

(b)                                 Assignments by Lenders.  Any
Lender may at any time assign to one or more Eligible Assignees all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations and in Swing Line Loans) at the time owing to
it); provided that

 

(i)                                     except in the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender or an
Affiliate of a Lender or an Approved Fund with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the
principal outstanding balance of the Loans of the assigning Lender subject to
each such assignment, determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to the Administrative Agent or, if
“Trade Date” is specified in the Assignment and Assumption, as of the Trade
Date, shall not be less than $5,000,000 unless each of
the Administrative Agent and, so long as no Event of Default has occurred and
is continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met;

 

(ii)                                  each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loans or the Commitment
assigned, except that this clause (ii) shall not apply to rights in
respect of Swing Line Loans;

 

(iii)                               any assignment of a Commitment must be
approved by the Administrative Agent, the L/C Issuer, the Domestic Swing Line
Lender and the Foreign Swing Line Lender unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would
otherwise qualify as an Eligible Assignee); and

 

(iv)                              the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with
a processing and recordation fee in the amount, if any, required as set forth
in Schedule 10.06, and the Eligible Assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

 

Subject
to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment
and Assumption, the Eligible Assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering
all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto) but shall continue to be entitled to
the benefits of Sections 3.01, 3.04, 3.05, and 10.04
with respect to facts and circumstances occurring prior to the effective date
of such assignment.  Upon written
request, each Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender.  Any assignment or
transfer by a Lender of rights or obligations under this Agreement

 

90

 

that
does not comply with this subsection shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and obligations
in accordance with subsection (d) of this Section.

 

(c)                                  Register.  The Administrative Agent,
acting solely for this purpose as an agent of the Borrower, shall maintain at
the Administrative Agent’s Office a copy of each Assignment and Assumption delivered
to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans and L/C
Obligations owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”).  The
entries in the Register shall be conclusive absent manifest error, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary.  The Register shall be
available for inspection by each of the Borrower and the L/C Issuer at any
reasonable time and from time to time upon reasonable prior notice.  In addition, at any time that a request for a consent for a material or substantive change to the Loan
Documents is pending, any Lender may request and receive from the
Administrative Agent a copy of the Register.

 

(d)                                 Participations.  Any
Lender may at any time, with the consent of the Borrower, sell participations
to any Person (other than a natural person or the Borrower or any of the
Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or
a portion of such Lender’s rights and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans (including such
Lender’s participations in L/C Obligations and/or Swing Line Loans) owing to
it); provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the Administrative Agent, the Lenders and the L/C
Issuer shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.

 

Any agreement or instrument pursuant to which a
Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, waiver or other
modification described in the first proviso to Section 10.01 that
affects such Participant.

 

(e)                                  Limitation upon Participant Rights.  A
Participant shall not be entitled to receive any greater payment under Section 3.01
or 3.04 than the applicable Lender would
have been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. 
A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits of Section 3.01 unless the Borrower
is notified in writing of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrower, to comply with Section 3.01(e)
as though it were a Lender.

 

(f)                                    Certain Pledges.  Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement (including under its Note(s), if
any) to secure obligations of such Lender, including any pledge or assignment
to secure obligations to a Federal Reserve Bank; provided that no such
pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

 

(g)                                 Electronic Execution of Assignments.  The
words “execution,” “signed,” “signature,” and words of like import in any
Assignment and Assumption shall be deemed to include electronic signatures or
the keeping of records in electronic form, each of which shall be of the same
legal effect, validity or enforceability as a manually executed signature or
the use of a paper-based recordkeeping system, as the

 

91

 

case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce
Act, the New York State Electronic Signatures and Records Act, or any other
similar state laws based on the Uniform Electronic Transactions Act.

 

(h)                                 Special Purpose Funding Vehicles. 
Notwithstanding anything to the contrary contained herein, any Lender (a
“Granting Lender”) may grant to a special purpose funding vehicle
identified as such in writing from time to time by the Granting Lender to the
Administrative Agent and the Borrower (an “SPC”) the option to provide
all or any part of any Committed Loan that such Granting Lender would otherwise
be obligated to make pursuant to this Agreement; provided that (i)
nothing herein shall constitute a commitment by any SPC to fund any Committed
Loan, and (ii) if an SPC elects not to exercise such option or otherwise fails
to make all or any part of such Committed Loan, the Granting Lender shall be
obligated to make such Committed Loan pursuant to the terms hereof or, if it
fails to do so, to make such payment to the Administrative Agent as is required
under Section 2.13(b)(ii). 
Each party hereto hereby agrees that (i) neither the grant to any SPC
nor the exercise by any SPC of such option shall increase the costs or expenses
or otherwise increase or change the obligations of the Borrower under this
Agreement (including its obligations under Section 3.04), (ii) no
SPC shall be liable for any indemnity or similar payment obligation under this
Agreement for which a Lender would be liable, and (iii) the Granting Lender
shall for all purposes, including the approval of any amendment, waiver or
other modification of any provision of any Loan Document, remain the lender of
record hereunder.  The making of a Committed
Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to
the same extent, and as if, such Committed Loan were made by such Granting
Lender.  In furtherance of the foregoing,
each party hereto hereby agrees (which agreement shall survive the termination
of this Agreement) that, prior to the date that is one year and one day after
the payment in full of all outstanding commercial paper or other senior debt of
any SPC, it will not institute against, or join any other Person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or
liquidation proceeding under the laws of the United States or any State
thereof.  Notwithstanding anything to the
contrary contained herein, any SPC may (i) with notice to, but without prior
consent of the Borrower and the Administrative Agent and with the payment of a
processing fee in the amount of $2,500, assign all or any portion of its right
to receive payment with respect to any Committed Loan to the Granting Lender
and (ii) disclose on a confidential basis any non-public information relating
to its funding of Committed Loans to any rating agency, commercial paper dealer
or provider of any surety or Guarantee or credit or liquidity enhancement to
such SPC.

 

(i)                                     Resignation as L/C Issuer or Swing Line Lender
after Assignment.  Notwithstanding anything to the contrary
contained herein, if at any time Bank of America assigns all of its Commitment
and Loans pursuant to subsection (b) above, Bank of America may, (i) upon
30 days’ written notice to the Borrower and the Lenders, resign as L/C Issuer
and/or (ii) upon 30 days’ written notice to the Borrower, resign as Domestic
Swing Line Lender and/or Foreign Swing Line Lender, as the case may be.  In the event of any such resignation as L/C
Issuer, Domestic Swing Line Lender and/or Foreign Swing Line Lender, the
Borrower shall be entitled to appoint from among the Lenders a successor L/C
Issuer, Domestic Swing Line Lender or Foreign Swing Line Lender hereunder; provided,
however, that no failure by the Borrower to appoint any such successor
shall affect the resignation of Bank of America as L/C Issuer, Domestic Swing
Line Lender or Foreign Swing Line Lender, as the case may be.  If Bank of America resigns as L/C Issuer, it
shall retain all the rights, powers, privileges and duties of the L/C Issuer
hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as L/C Issuer and all L/C Obligations with respect
thereto (including the right to require the Lenders to make Base Rate Committed
Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).  If Bank of America resigns as Domestic Swing
Line Lender, it shall retain all the rights of the Domestic Swing Line Lender
provided for hereunder with respect to Domestic Swing Line Loans made by it and
outstanding as of the effective date of such resignation, including the right
to require the Lenders to make Base Rate Committed Loans or fund risk
participations in outstanding Domestic Swing

 

92

 

Line
Loans pursuant to Section 2.04(c). 
Bank of America resigns as Foreign Swing Line Lender, it shall retain
all the rights of the Foreign Swing Line Lender provided for hereunder with
respect to Foreign Swing Line Loans made by it and outstanding as of the
effective date of such resignation, including the right to require the Lenders
to make Eurodollar Rate Committed Loans or fund risk participations in
outstanding Domestic Swing Line Loans pursuant to Section 2.05(c).  Upon the appointment of a successor L/C
Issuer, Domestic Swing Line and/or Foreign Swing Line Lender, (a) such
successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring L/C Issuer, Domestic Swing Line Lender or
Foreign Swing Line Lender, as the case may be, and (b) the successor L/C Issuer
shall issue letters of credit in substitution for the Letters of Credit, if
any, outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank
of America with respect to such Letters of Credit.

 

10.07                 Treatment of Certain Information; Confidentiality.

 

Each of the Administrative Agent, the Lenders and
the L/C Issuer agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to those of its
Affiliates and to its and its Affiliates’ respective partners, directors,
officers, employees, agents, advisors and representatives whom it reasonably
determines needs to know such information (it being understood that the Persons
to whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
to a Borrower and its obligations, (g) with the consent of the Borrower or (h)
to the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to
Administrative Agent, any Lender, the L/C Issuer or any of their respective
Affiliates on a nonconfidential basis from a source other than the Borrower,
provided that the source of such information was not known by Administrative
Agent, any such Lender, the L/C Issuer or any of their respective Affiliates to
be bound by a confidentiality agreement or other legal or contractual
obligation of confidentiality with respect to such information.

 

For purposes of this Section, “Information”
means all information received from the Borrower or any Subsidiary relating to
the Borrower or any Subsidiary or any of their respective businesses, other
than any such information that is available to the Administrative Agent, any
Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by the
Borrower or any Subsidiary.  Any Person
required to maintain the confidentiality of
Information as provided in this Section shall be considered to have
complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

 

Each of the Administrative Agent, the Lenders and
the L/C Issuer acknowledges that (a) the Information may include material non-public
information concerning the Borrower or a Subsidiary, as the case may be, (b) it
has developed compliance procedures regarding the use of material non-public
information and (c) it will handle such material non-public information in
accordance with applicable Law, including Federal and state securities Laws.

 

93

 

10.08                 Right of Setoff.

 

If a payment or bankruptcy Event of Default shall
have occurred and be continuing, each Lender, the L/C Issuer and each of their
respective Affiliates is hereby authorized at any time and from time to time,
to the fullest extent permitted by applicable law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final, in
whatever currency but excluding any trust accounts, payroll accounts or third
party accounts held in the name of the Borrower or any other Loan Party) at any
time held and other obligations (in whatever currency) at any time owing by
such Lender, the L/C Issuer or any such Affiliate to or for the credit or the
account of the Borrower or any other Loan Party against any and all of the
obligations of such Borrower or such Loan Party now or hereafter existing under
this Agreement or any other Loan Document to such Lender or the L/C Issuer,
irrespective of whether or not such Lender or the L/C Issuer shall have made
any demand under this Agreement or any other Loan Document and although such
obligations of such Borrower or such Loan Party may be contingent or unmatured
or are owed to a branch or office of such Lender or the L/C Issuer different
from the branch or office holding such deposit or obligated on such
indebtedness.  The rights of each Lender,
the L/C Issuer and their respective Affiliates under this Section are in
addition to other rights and remedies (including other rights of setoff) that
such Lender, the L/C Issuer or their respective Affiliates may have.  Each Lender and the L/C Issuer agrees to
notify the Borrower and the Administrative Agent promptly after any such setoff
and application, provided that the failure to give such notice shall not
affect the validity of such setoff and application.

 

10.09                 Interest Rate Limitation.

 

Notwithstanding anything to the contrary contained
in any Loan Document, the interest paid or agreed to be paid under the Loan
Documents shall not exceed the maximum rate of non-usurious interest permitted
by applicable Law (the “Maximum Rate”). 
If the Administrative Agent or any Lender shall receive interest in an
amount that exceeds the Maximum Rate, the excess interest shall be applied to
the principal of the Loans or, if it exceeds such unpaid principal, refunded to
the Borrower.  In determining whether the
interest contracted for, charged, or received by the Administrative Agent or a
Lender exceeds the Maximum Rate, such Person may, to the extent permitted by
applicable Law, (a) characterize any payment that is not principal as an
expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

 

10.10                 Counterparts; Integration; Effectiveness.

 

This Agreement may be executed in counterparts (and
by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  This Agreement and the
other Loan Documents constitute the entire contract among the parties relating
to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01,
this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto. 
Delivery of an executed counterpart of a signature page of this
Agreement by telecopy or electronic mail shall be effective as delivery of a
manually executed counterpart of this Agreement.

 

10.11                 Survival of Representations and Warranties.

 

All representations and warranties made hereunder
and in any other Loan Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the

 

94

 

execution and delivery hereof and thereof.  Such representations and warranties have been
or will be relied upon by the Administrative Agent and each Lender, regardless
of any investigation made by the Administrative Agent or any Lender or on their
behalf and notwithstanding that the Administrative Agent or any Lender may have
had notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as long as any Loan or any other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit
shall remain outstanding.

 

10.12                 Severability.

 

If any provision of this Agreement or the other Loan
Documents is held to be illegal, invalid or unenforceable, (a) the legality,
validity and enforceability of the remaining provisions of this Agreement and
the other Loan Documents shall not be affected or impaired thereby and (b) the
parties shall endeavor in good faith negotiations to replace the illegal,
invalid or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions.  The invalidity
of a provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

10.13                 Replacement of Lenders.

 

If any Lender requests compensation under Section 3.04,
or if the Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section 3.01,
or if any Lender is a Defaulting Lender, or in the case of a refusal by a
Lender to consent to a proposed change, waiver, discharge or termination with
respect to this Agreement which has been approved by the Required Lenders as
provided in Section 10.01, then the Borrower may, at its sole
expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section 10.06),
all of its interests, rights and obligations under this Agreement and the
related Loan Documents to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment), provided
that:

 

(a)                                  the assignment fee specified in Section 10.06(b)
shall have been paid;

 

(b)                                 such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans and L/C Advances (in the
relevant currency or currencies), accrued interest thereon, accrued fees and
all other amounts payable to it hereunder and under the other Loan Documents
(including any amounts under Section 3.05) from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts);

 

(c)                                  in the case of any such assignment resulting
from a claim for compensation under Section 3.04 or payments
required to be made pursuant to Section 3.01, such assignment will
result in a reduction in such compensation or payments thereafter; and

 

(d)                                 such assignment does not conflict with applicable
Laws.

 

A Lender shall not be required to make any such
assignment or delegation if, prior thereto, as a result of a waiver by such
Lender, the circumstances entitling the Borrower to require such assignment and
delegation cease to apply.

 

95

 

10.14                 Governing Law; Jurisdiction; Etc.

 

(a)                                  GOVERNING LAW.  THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK.

 

(b)                                 SUBMISSION TO JURISDICTION.  EACH
PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW
YORK SITTING IN NEW YORK CITY OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT
OF SUCH STATE, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT.  EACH OF THE PARTIES
HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. 
NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE
HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN
THE COURTS OF ANY JURISDICTION.

 

(c)                                  WAIVER OF VENUE.  EACH
PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (B) OF THIS SECTION.  EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)                                 SERVICE OF PROCESS.  EACH
PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED
FOR NOTICES IN SECTION 10.02. 
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

96

 

10.15                 Waiver of Jury Trial.

 

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

 

10.16                 USA PATRIOT Act Notice.

 

Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower 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 Borrower, which information includes the name
and address of each Borrower and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify such Borrower in
accordance with the Act.

 

10.17                 Judgment
Currency.  If,
for the purposes of obtaining judgment in any court, it is necessary to convert
a sum due hereunder or any other Loan Document in one currency into another
currency, the rate of exchange used shall be that at which in accordance with
normal banking procedures the Administrative Agent could purchase the first
currency with such other currency on the Business Day preceding that on which
final judgment is given.  The obligation
of the Borrower in respect of any such sum due from it to the Administrative
Agent or the Lenders hereunder or under the other Loan Documents shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than
that in which such sum is denominated in accordance with the applicable
provisions of this Agreement (the “Agreement Currency”), be discharged only to
the extent that on the Business Day following receipt by the Administrative
Agent of any sum adjudged to be so due in the Judgment Currency, the
Administrative Agent may in accordance with normal banking procedures purchase
the Agreement Currency with the Judgment Currency.  If the amount of the Agreement Currency so
purchased is less than the sum originally due to the Administrative Agent from
the Borrower in the Agreement Currency, the Borrower agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the
Administrative Agent or the Person to whom such obligation was owing against
such actual loss.  If the amount of the
Agreement Currency so purchased is greater than the sum originally due to the
Administrative Agent in such currency, the Administrative Agent agrees to
return the amount of any excess to the Borrower (or to any other Person who may
be entitled thereto under applicable law).

 

97

 

ARTICLE XI

GUARANTY

 

11.01                 The Guaranty.

 

Each of the Guarantors hereby jointly and severally
guarantees to each Lender, each Affiliate of a Lender that enters into a Swap
Contract or a Treasury Management Agreement, and the Administrative Agent as
hereinafter provided, as primary obligor and not as surety, the prompt payment
of the Obligations in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration, as a mandatory cash collateralization or
otherwise) strictly in accordance with the terms thereof.  The Guarantors hereby further agree that if
any of the Obligations are not paid in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise), the Guarantors will, jointly and severally,
promptly pay the same, without any demand or notice whatsoever, and that in the
case of any extension of time of payment or renewal of any of the Obligations,
the same will be promptly paid in full when due (whether at extended maturity,
as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension
or renewal.

 

Notwithstanding any provision to the contrary
contained herein or in any other of the Loan Documents or Swap Contracts or
Treasury Management Agreements, the obligations of each Guarantor under this
Agreement and the other Loan Documents shall be limited to an aggregate amount
equal to the largest amount that would not render such obligations subject to
avoidance under the Debtor Relief Laws or any comparable provisions of any
applicable state law.

 

11.02                 Obligations Unconditional.

 

The obligations of the Guarantors under Section 11.01
are joint and several, absolute and unconditional, irrespective of the value,
genuineness, validity, regularity or enforceability of any of the Loan
Documents, Swap Contracts or Treasury Management Agreements, or any other
agreement or instrument referred to therein, or any substitution, release,
impairment or exchange of any other guarantee of or security for any of the
Obligations, and, to the fullest extent permitted by applicable law,
irrespective of any other circumstance whatsoever which might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor
(other than the payment of the Obligations), it being the intent of this Section 11.02
that the obligations of the Guarantors hereunder shall be absolute and
unconditional under any and all circumstances (other than the payment of the
Obligations).  Each Guarantor agrees that
such Guarantor shall not exercise any right of subrogation, indemnity,
reimbursement or contribution against the Borrower or any other Guarantor for
amounts paid under this Article XI until such time as the
Obligations have been Fully Satisfied. 
Without limiting the generality of the foregoing, it is agreed that, to
the fullest extent permitted by law, the occurrence of any one or more of the
following shall not alter or impair the liability of any Guarantor hereunder which
shall remain absolute and unconditional as described above:

 

(a)                                  at any time or from time to time, without
notice to any Guarantor, the time for any performance of or compliance with any
of the Obligations shall be extended, or such performance or compliance shall
be waived;

 

(b)                                 any of the acts mentioned in any of the
provisions of any of the Loan Documents, any Swap Contract or any Treasury
Management Agreement between any Consolidated Party and any Lender, or any
Affiliate of a Lender, or any other agreement or instrument referred to in the
Loan Documents or such Swap Contracts shall be done or omitted;

 

(c)                                  the maturity of any of the Obligations shall be
accelerated, or any of the Obligations shall be modified, supplemented or
amended in any respect, or any right under any of the Loan

 

98

 

Documents, any Swap Contract or any Treasury
Management Agreement between any Consolidated Party and any Lender, or any
Affiliate of a Lender, or any other agreement or instrument referred to in the
Loan Documents or such Swap Contracts or such Treasury Management Agreements
shall be waived or any other guarantee of any of the Obligations or any
security therefor shall be released, impaired or exchanged in whole or in part
or otherwise dealt with;

 

(d)                                 any Lien granted to, or in favor of, the
Administrative Agent or any Lender or Lenders as security for any of the
Obligations shall fail to attach or be perfected; or

 

(e)                                  any of the Obligations shall be determined to be
void or voidable (including, without limitation, for the benefit of any
creditor of any Guarantor) or shall be subordinated to the claims of any Person
(including, without limitation, any creditor of any Guarantor).

 

With respect to its obligations hereunder, each
Guarantor hereby expressly waives diligence, presentment, demand of payment,
protest and all notices whatsoever, and any requirement that the Administrative
Agent or any Lender exhaust any right, power or remedy or proceed against any
Person under any of the Loan Documents, any Swap Contract or any Treasury
Management Agreement between any Consolidated Party and any Lender, or any
Affiliate of a Lender, or any other agreement or instrument referred to in the
Loan Documents or such Swap Contracts or such Treasury Management Agreements,
or against any other Person under any other guarantee of, or security for, any
of the Obligations.

 

11.03                 Reinstatement.

 

The obligations of the Guarantors under this Article XI
shall be automatically reinstated if and to the extent that for any reason any
payment by or on behalf of any Person in respect of the Obligations is
rescinded or must be otherwise restored by any holder of any of the
Obligations, whether as a result of any proceedings in bankruptcy or reorganization
or otherwise, and each Guarantor agrees that it will indemnify the
Administrative Agent and each Lender within 10 days of written demand (together
with back up documentation supporting such reimbursement) for all reasonable
costs and expenses (including, without limitation, reasonable fees and expenses
of counsel) incurred by the Administrative Agent or such Lender in connection
with such rescission or restoration, including any such costs and expenses
incurred in defending against any claim alleging that such payment constituted
a preference, fraudulent transfer or similar payment under any bankruptcy,
insolvency or similar law.

 

11.04                 Certain Additional Waivers.

 

Each Guarantor agrees that such Guarantor shall have
no right of recourse to security for the Obligations, except through the
exercise of rights of subrogation pursuant to Section 11.02 and
through the exercise of rights of contribution pursuant to Section 11.06.

 

11.05                 Remedies.

 

The Guarantors agree that, to the fullest extent
permitted by law, as between the Guarantors, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, the Obligations may be
declared to be forthwith due and payable as provided in Section 8.02
(and shall be deemed to have become automatically due and payable in the
circumstances provided in said Section 8.02) for purposes of Section 11.01
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or preventing the Obligations from becoming automatically due and
payable) as against any other Person and that, in the event of such declaration
(or the Obligations being deemed to have become automatically due and payable),
the Obligations (whether or not due and payable by any other Person) shall
forthwith become due and payable by

 

99

 

the Guarantors for purposes of Section 11.01. The Guarantors
acknowledge and agree that their obligations hereunder may be secured in
accordance with the terms of the Collateral Documents and that the Lenders may
exercise their remedies thereunder in accordance with the terms thereof.

 

11.06                 Rights of Contribution.

 

The Guarantors hereby agree as among themselves
that, in connection with payments made hereunder, each Guarantor shall have a
right of contribution from each other Guarantor in accordance with applicable
Law.  Such contribution rights shall be
subordinate and subject in right of payment to the Obligations until such time
as the Obligations have been Fully Satisfied, and none of the Guarantors shall
exercise any such contribution rights relating to payments made hereunder until
the Obligations have been Fully Satisfied.

 

11.07                 Guarantee of Payment; Continuing Guarantee.

 

The guarantee in this Article XI is a
guaranty of payment and not of collection, is a continuing guarantee, and shall
apply to all Obligations whenever arising.

 

100

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

 

	
  BORROWER:

  	
  DADE BEHRING INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Moran

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Mark W. Moran

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Corporate Vice President and Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  PARENT:

  	
  DADE BEHRING HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Moran

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Mark W. Moran

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  VP and Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY GUARANTORS:

  	
  DADE FINANCE LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Moran

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Mark W. Moran

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  VP and Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
  DADE BEHRING FINANCE CO. LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Don Wilbur

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Don Wilbur

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  President

  	
   

  
									

 

1

 

	
   

  	
  BANK OF AMERICA, N.A., as

  
	
   

  	
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Angela Lau

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Angela Lau

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant Vice President

  	
   

  
						

 

2

 

	
   

  	
  BANK OF AMERICA, N.A., as a Lender, L/C Issuer,

  
	
   

  	
  Domestic Swing Line Lender and Foreign Swing Line

  
	
   

  	
  Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard C. Hardison

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Richard C. Hardison

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
						

 

3

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