Document:

Exhibit 10.2_CEO Annoucement

Exhibit 10.2

EMPLOYEE RETENTION AND MOTIVATION AGREEMENT 
This agreement (the “Agreement”) is effective as of December 7, 2012 (the “Agreement Date”) by and between (the “Covered Person”) and Progress Software Corporation, a Massachusetts corporation (the “Company”).
R E C I T A L S
A.    The Covered Person presently serves as an employee or officer of the Company in a role that is important to the continued conduct of the Company’s business and operations.
B.    The Board of Directors of the Company (the “Board”) has determined that it is in the best interest of the Company and its stockholders to assure that the Company will have the continued dedication and objectivity of the Covered Person, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined below) of the Company.
C.    The Board believes that it is imperative to provide the Covered Person with certain benefits following a Change of Control and certain severance benefits upon the Covered Person’s termination of employment following a Change in Control.
D.    In order to accomplish the foregoing objectives, the Board has directed the Company, upon execution of the Agreement by the Covered Person, to commit to the terms provided herein.
E.    The Covered Party accepts the terms of the Agreement.
F.    Certain capitalized terms used in this Agreement are defined in Section 4 below.  In consideration of the mutual covenants herein contained and in consideration of the continuing employment of the Covered Person by the Company, the parties agree as follows:
1.    Scope; Term of Agreement.  Simultaneously with the execution of this Agreement, the Company and the Covered Person are also entering into an Executive Employment Agreement (as amended, the “Employment Agreement”), which provides the Covered Person, in addition to other benefits set forth therein, with certain benefits in circumstances following a termination of employment other than following a Change of Control.  This Agreement shall be applicable in the event an Involuntary Termination (as defined below) occurs upon or within twelve (12) months following a Change of Control.  The parties acknowledge that the Covered Person’s employment is at will, as defined under applicable law, except as may otherwise be provided under the terms of the Employment Agreement.  If the Covered Person’s employment terminates for any reason, the Covered Person shall not be entitled to any payments, benefits, damages, awards or compensation (collectively, 

“recompense”) other than the maximum recompense as provided by one of the following: (i) this Agreement, or (ii) the Employment Agreement, or (iii) the Company’s existing severance guidelines and benefit plans which are in effect at the time of termination, or (iv) applicable statutory provisions.  The provisions of this Agreement shall terminate upon the earlier of (i) the date that all obligations of the parties hereunder have been satisfied, or (ii) the date on which the Covered Person is no longer employed pursuant to the Employment Agreement.  A termination of the provisions of this Agreement pursuant to the preceding sentence shall be effective for all purposes, except that such termination shall not affect the payment or provision of compensation or benefits on account of termination of employment occurring prior to the termination of the provisions of this Agreement.
2.    Benefits Immediately Following Change of Control.
(a)    Treatment of Outstanding Options and Restricted Equity.  Effective immediately upon a Change of Control, unless the outstanding stock options and shares of restricted equity held by the Covered Person under the Company’s equity incentive plans on the date of the Change of Control are continued by the Company or assumed by its successor entity, all outstanding stock options held by the Covered Person shall accelerate and become fully exercisable, and all shares of restricted equity held by the Covered Person shall become nonforfeitable and all restrictions shall lapse.  If such outstanding stock options and shares of restricted equity held by the Covered Person are continued by the Company or assumed by its successor entity, then vesting shall continue in its usual course.  
(b)    Payment of Annual Bonus.  Effective immediately upon a Change of Control, the Covered Person’s annual cash bonus for the year in which the Change of Control occurs shall be fixed at the Covered Person’s target bonus level as in effect immediately prior to the Change of Control and the Covered Person shall be paid a pro-rated portion of such bonus, as of the date of the Change of Control, based on the number of calendar days in the fiscal year to which the bonus relates which have elapsed prior to the date of the Change of Control.  Any payment to which the Covered Person is entitled pursuant to this section shall be paid in a lump sum within thirty (30) days of the event requiring such payment.
3.    Severance Benefits.
(a)    Termination Following a Change of Control.  If the Covered Person’s employment terminates after a Change of Control, then Covered Person shall be entitled to receive the Mandatory Payments described in Section  3(a)(ii) below and, subject to Section 5 below, the Covered Person shall be entitled to receive severance benefits as follows: 
(i)    Involuntary Termination.  If the Covered Person’s employment is terminated within twelve (12) months following a Change of Control as a result of Involuntary 

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Termination, then the Covered Person shall be entitled to receive a lump sum severance payment in an amount equal to eighteen (18) months of the Covered Person’s annual Target Compensation; and in addition, for a period of eighteen (18) months after such termination, the Company shall be obligated to provide the Covered Person with benefits that are substantially equivalent to the Covered Person’s benefits (medical, dental, vision and life insurance) that were in effect immediately prior to the Change of Control.  In addition, each outstanding stock option held by the Covered Person which had been granted prior to the date of the Change of Control under the Company’s equity incentive plans shall accelerate and become fully exercisable and all shares of restricted equity held by the Covered Person which had been granted prior to the date of the Change of Control under the Company’s equity incentive plans shall become nonforfeitable and all restrictions shall lapse.  Any severance payments to which the Covered Person is entitled pursuant to this section shall be paid in a lump sum within thirty (30) days of the effective date of the Covered Person’s termination.  For purposes of this Paragraph 3(a)(i), the term “Target Compensation” shall mean the highest level of Target Compensation applicable to the Covered Person from the period of time immediately prior to the Change of Control through the effective date of the Covered Person’s termination.  With respect to any taxable income that the Covered Person is deemed to have received for federal income tax purposes by virtue of the Company providing continued employee benefits to the Covered Person (i.e medical, dental, vision and life insurance), the Company shall make a cash payment to the Covered Person such that the net economic result to the Covered Person will be as if such benefits were provided on a tax-free basis to the same extent as would have been applicable had the Covered Person’s employment not been terminated.  Such cash payment shall be made no later than March 15 of the following each calendar year in which such benefits are taxable to the Covered Person.
Anything in this Agreement to the contrary notwithstanding, if at the time of the Covered Person’s separation from service (within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Covered Person is considered a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, and if any payment that the Covered Person becomes entitled to under this Agreement is considered deferred compensation subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earliest of (A) six months after the Covered Person’s date of termination, (B) the Covered Person’s death, or (C) such other date as will cause such payment not to be subject to such interest and additional tax.  The parties agree that this Agreement may be amended, as reasonably requested by either party and as may be necessary to comply fully with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

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(ii)    Voluntary Resignation.  If the Covered Person’s employment terminates by reason of the Covered Person’s voluntary resignation (and is not an Involuntary Termination), then the Covered Person shall not be entitled to receive any severance payments or other benefits except that Covered Person shall be entitled to the following (the “Mandatory Payments”):
		
	(A)
	All accrued but unpaid base salary through the date the Covered Person’s employment is terminated, to be paid in a lump sum cash payment within thirty (30) days following the termination date or sooner if required by law;

		
	(B)
	Pay for any vacation time earned but not used through the termination date, to be paid in a lump sum cash payment within thirty (30) days following the termination date or sooner if required by law;

		
	(C)
	Except to the extent that the Covered Person’s employment is terminated for Cause, any bonus compensation awarded for the fiscal year preceding that in which the termination occurs, but unpaid on the termination date, to be paid and provided in accordance with the Board’s standard policies for paying executive incentive compensation, but in no event later than sixty (60) days after the end of such fiscal year to which the bonus relates;

		
	(D)
	Any unpaid or unreimbursed business expenses incurred and documented in accordance with the Company’s expense reimbursement policy then in effect by the Covered Person, to the extent incurred during the term of the Covered Person’s employment, to be paid in a lump sum cash payment within thirty (30) days following the termination date; and

		
	(D)
	Any accrued but unpaid benefits provided under the Company’s employee benefit plans, to be paid and provided in accordance with the terms of the applicable plan. 

(iii)    Disability; Death.  If the Company terminates the Covered Person’s employment as a result of the Covered Person’s Disability (as defined below), or such Covered Person’s employment is terminated due to the death of the Covered Person, then the 

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Covered Person shall not be entitled to receive any severance payments or other benefits, other than the Mandatory Payments or those (if any) as may then be established under the Company’s then existing severance guidelines and benefit plans at the time of such Disability or death.
(iv)    Termination for Cause.  If the Company terminates the Covered Person’ employment for Cause (as defined below), then the Covered Person shall not be entitled to receive any severance payments, bonus payments or other benefits following the date of such termination, other than the Mandatory Payments (excluding amounts under (ii)(c) above), and the Company shall have no obligation to provide for the continuation of any health and medical benefit or life insurance plans existing on the date of such termination, other than as specifically required by applicable law.
(b)    Termination Other than in Connection with a Change of Control.  If the Covered Person’s employment is terminated for any reason either prior to the occurrence of a Change of Control or after the twelve (12) month period following a Change of Control, then the Covered Person shall be entitled to receive severance and any other benefits provided under the Employment Agreement.
4.    Definition of Terms.  The following terms referred to in this Agreement shall have the following meanings:
(a)    Change of Control.  “Change of Control” shall mean the occurrence of any of the following events:
(i)    Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities, whether by tender offer, or otherwise; or
(ii)    A majority of the members of the Board are replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of such appointment or election; or
(iii)    The consummation of a merger or consolidation of the Company with any other entity, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (B) a merger or consolidation which would result in the voting securities of the Company 

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outstanding immediately prior thereto representing less than 50% of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; but the Company is clearly the acquirer considering the totality of the circumstances, including such factors as whether the president of the Company will continue as president of the Company or the surviving entity, the majority of the directors of the Company or the surviving entity will be incumbent directors, substantially all of the executive officers of the Company will be retained, etc., all as determined immediately prior to the consummation of the merger or consolidation by the incumbent directors.
(iv)    The sale or disposition by the Company of all or substantially all of the Company’s assets.
(b)    Involuntary Termination.  “Involuntary Termination” shall mean (i) without the Covered Person’s express written consent, the assignment to the Covered Person of any duties or the significant reduction of the Covered Person’s duties, either of which is materially inconsistent with the Covered Person’s position with the Company and responsibilities in effect immediately prior to such assignment, or the removal of the Covered Person from such position and responsibilities, which is not effected for Disability or for Cause (for the avoidance of doubt, a material diminution in responsibilities will be deemed to have occurred if either (A) the Covered Person ceases to hold the position and  title of Chief Executive Officer of the Company (or any successor entity) and its ultimate parent or (B) the failure of the Covered Person to be nominated or elected as a member of the Board (or the Board of Directors of any successor entity) and the Board of Directors of the Company’s (or its successor’s) ultimate parent); (ii) a material reduction by the Company in the base salary and/or bonus of the Covered Person as in effect immediately prior to such reduction; (iii) a material reduction by the Company in the kind or level of employee benefits to which the Covered Person is entitled immediately prior to such reduction with the result that the Covered Person’s overall benefit package is significantly reduced; (iv) the relocation of the Covered Person to a facility or a location more than fifty (50) miles from the Covered Person’s then present location, without the Covered Person’s express written consent; (v) any purported termination of the Covered Person by the Company which is not effected for death or Disability or for Cause, or any purported termination for Cause for which the grounds relied upon are not valid; (vi) the failure of the Company to obtain, on or before the Change of Control, the assumption of the terms of this Agreement by any successors contemplated in Section 7 below; or (vii) a material breach of this Agreement by the Company.  An Involuntary Termination shall be effective upon written notice by the Covered Person.
(c)    Cause.  “Cause” shall mean (i) any act of personal dishonesty taken by the Covered Person in connection with his or her responsibilities as an employee and intended to result in substantial personal enrichment of the Covered Person, (ii) the conviction of a felony, 

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(iii) a willful act by the Covered Person which constitutes gross misconduct and which is injurious to the Company, (iv) material breach of a material provision of this Agreement or of the Proprietary Information Agreement (which is not cured within 30 days following notice) or (v) continued violations by the Covered Person of the Covered Person’s obligations as an employee of the Company which are demonstrably willful and deliberate on the Covered Person’s part after there has been delivered to the Covered Person a written demand for performance from the Company which describes the basis for the Company’s belief that the Covered Person has not substantially performed his or her duties.
(d)    Disability.  “Disability” shall mean that the Covered Person has been unable to perform his or her duties as an employee of the Company as the result of incapacity due to physical or mental illness, and such inability, at least twenty-six (26) weeks after its commencement, is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Covered Person or the Covered Person’s legal representative (such agreement as to acceptability not to be unreasonably withheld).  Termination resulting from Disability may only be effected after at least thirty (30) days’ written notice by the Company of its intention to terminate the Covered Person’s employment.  In the event that the Covered Person resumes the performance of substantially all of his or her duties as an employee of the Company before termination of his or her employment becomes effective, the notice of intent to terminate shall automatically be deemed to have been revoked.
(e)    Target Compensation.  “Target Compensation” shall mean the total of all fixed and variable cash compensation due to a Covered Person based upon one hundred percent (100%) attainment of performance levels.
5.    Limitation on Payments.  In the event that the severance and other benefits provided for in this Agreement or otherwise payable to the Covered Person (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 5, would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Covered Person’s severance benefits under Section 3(a)(i) shall be either
(i)    delivered in full, or
(ii)    delivered as to such lesser extent which would result in no portion of such severance benefits subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by the Covered Person on an after tax basis, of the greatest amount of severance payments and benefits, notwithstanding that all or some portion of such severance payments and benefits may be taxable under Section 4999 of the Code.  Unless the Company and the Covered Person otherwise agree in writing, any determination required under this Section 5 shall be made 

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in writing in good faith by the accounting firm serving as the Company’s independent public accountants immediately prior to the Change of Control (the “Accountants”) in good faith consultation with the Covered Person.  In the event of a reduction in benefits hereunder, unless the Covered Person provides direction otherwise (which alternative direction shall be subject to the Company’s consent, which shall not be unreasonably withheld), such benefits shall be reduced in the following order: (a) cash payments not subject to Section 409A of the Code; (b) cash payments subject to Section 409A of the Code; (c) equity compensation; and (d) non-cash forms of benefit.  To the extent any payment is to be made over time, then the payment shall be reduced in reverse chronological order.  For purposes of making the calculations required by this Section 5, the Accountants, in consultation with the Covered Person, may make reasonable assumptions and approximations concerning the applicable taxes and may rely on reasonable good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and the Covered Person shall furnish to the Accountants such information and documents as the Accountants may reasonable request in order to make a determination under this Section.  The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 5.
6.    Remedy.  If Covered Person’s benefits are reduced to avoid the Excise Tax pursuant to Section 5 hereof and notwithstanding such reduction, the IRS determines that the Covered Person is liable for the Excise Tax as a result of the receipt of severance benefits from the Company, then Covered Person shall be obligated to pay to the Company (the “Repayment Obligation”) an amount of money equal to the “Repayment Amount.” The Repayment Amount shall be the smallest such amount, if any, as shall be required to be paid to the Company so that the Covered Person’s net proceeds with respect to his or her severance benefits hereunder (after taking into account the payment of the Excise Tax imposed on such benefits) shall be maximized.  Notwithstanding the foregoing, the Repayment Amount shall be zero if a Repayment Amount of more than zero would not eliminate the Excise Tax.  If the Excise Tax is not eliminated through the performance of the Repayment Obligation, the Covered Person shall pay the Excise Tax.  The Repayment Obligation shall be discharged within thirty (30) days of either (i) the Covered Person entering into a binding agreement with the IRS as to the amount of Excise Tax liability, or (ii) a final determination by the IRS or a court decision requiring the Covered Person to pay the Excise Tax from which no appeal is available or is timely taken.
7.    Successors.
(a)    Company’s Successors.  Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) or to all or substantially all of the Company’s business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in 

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the absence of a succession.  For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets which executes and delivers an assumption agreement described in this subsection (a) or which becomes bound by the terms of this Agreement by operation of law.
(b)    Covered Person’s Successors.  The terms of this Agreement and all rights of the Covered Person’s hereunder shall inure to the benefit of, and be enforceable by, the Covered Person’s personal or legal representatives, executors, administrators, successors, heirs, distributes, devisees and legatees.
8.    Notice.  
(a)    General.  Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S.  registered or certified mail, return receipt requested and postage prepaid.  In the case of the Covered Person, mailed notices shall be addressed to him or her at the home address which he or she most recently communicated to the Company in writing.  In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its General Counsel.
(b)    Notice of Termination by the Company.  Any termination by the Company of the Covered Person’s employment with the Company at any time following a Change of Control shall be communicated by notice of termination to the Covered Person at least five (5) days prior to the date of such termination, given in accordance with Section 8(a) of this Agreement.  Such notice shall specify the termination date and whether the termination is considered by the Company to be for Cause as defined in Section 4(c) in which case the Company shall identify the specific subsection(s) of Section 4(c) asserted by the Company as the basis for the termination and shall set forth in reasonable detail the facts and circumstances relied upon by the Company in categorizing the termination as for Cause.
(c)    Notice by Covered Person of Involuntary Termination by the Company.  In the event the Covered Person determines that an Involuntary Termination has occurred at any time following a Change of Control, the Covered Person shall give written notice that such Involuntary Termination has occurred as set forth in this Section 8(c).  Such notice shall be delivered by the Covered Person to the Company in accordance with Section 8(a) of this Agreement within sixty (60) days following the date on which such Involuntary Termination if such Involuntary Termination occurred as a result of an event set forth in Section 4(b)(i)(A) or (B), (ii)-(vi) or within 120 days of an event set forth in Section 4(b)(i) other than the parenthetical containing (A) or (B) or (vii), shall indicate the specific provision or provisions in this Agreement upon which the Covered Person relied to make such determination and shall set 

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forth in reasonable detail the facts and circumstances claimed to provide a basis for such determination.  The failure by the Covered Person to include in the notice any fact or circumstance which contributes to a showing of Involuntary Termination shall not waive any right of the Covered Person hereunder or preclude the Covered Person from asserting such fact or circumstance in enforcing his or her rights hereunder.
9.    Miscellaneous Provisions.
(a)    No Duty to Mitigate.  The Covered Person shall not be required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking new employment or in any other manner), nor shall any such payment be reduced by any earnings that the Covered Person may receive from any other source.
(b)    Waiver.  No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed in writing and signed by the Covered Person and by an authorized officer of the Company (other than the Covered Person).  No waiver by either party of any breach of, or compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision of the same condition or provision at another time.
(c)    Entire Agreement.  Except with respect to the terms of any written employment agreement, if any, by and between the Company and the Covered Person that is signed on behalf of the Company, no agreements, representations or understandings (whether oral or written and whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof.
(d)    Choice of Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts.
(e)    Severability.  The invalidity or enforceability of any provisions or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.
(f)    Arbitration.  Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by final and binding arbitration in Massachusetts, in accordance with the rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrator’s award in any court having jurisdiction.  In the event the Covered Person prevails in an action or proceeding brought to enforce the terms of this Agreement or to enforce and collect on any non-de minimis judgment entered pursuant to 

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this Agreement, the Covered Person shall be entitled to recover all costs and reasonable attorney’s fees.
(g)    No Assignment of Benefits.  The rights of any person to payments or benefits under this Agreement shall not be made subject to option or assignment, either by voluntary or involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and any action in violation of this subsection (g) shall be void.
(h)    Employment Taxes.  Subject to Section 5, all payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes.
(i)    Assignment by Company.  The Company may assign its rights under this Agreement to an affiliate and an affiliate may assign its rights under this Agreement to another affiliate of the Company or to the Company; provided, however, that no assignment shall be made if the net worth of the assignee is less than the net worth of the Company at the time of the assignment.  In the case of any such assignment, the term “Company” when used in a section of the Agreement shall mean the corporation that actually employs the Covered Person.
(j)    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

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IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the date first above written.
Progress Software Corporation            Covered Person

	
			
	By:      /s/John R. Egan         
	 
	By:      /s/Philip M. Pead          

	John R. Egan
	 
	Philip M. Pead

	Chairman of the Board
	 
	 

-12-Exhibit 10.1

EXECUTION VERSION

Published CUSIP Numbers:

25764JAC5 (Transaction)
 25764JAD3 (Revolver)

CREDIT AGREEMENT

Dated as of December 7, 2012

among

DONALDSON COMPANY, INC.,

VARIOUS SUBSIDIARIES THEREOF,

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Administrative Agent

and

L/C Issuer,

U.S. BANK NATIONAL ASSOCIATION,

as Syndication Agent,

and

THE OTHER LENDERS PARTY HERETO

WELLS FARGO SECURITIES, LLC

and

U.S. BANK
NATIONAL ASSOCIATION,

as Joint Lead Arrangers and Joint Book Managers

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I

 	
  

 	
 DEFINITIONS AND ACCOUNTING TERMS

 	
  

 	
 1

 
	
  

 
	
  

 	
 1.01

 	
  

 	
 Defined Terms

 	
  

 	
 1

 
	
  

 	
 1.02

 	
  

 	
 Other Interpretive Provisions

 	
  

 	
 25

 
	
  

 	
 1.03

 	
  

 	
 Accounting Terms

 	
  

 	
 25

 
	
  

 	
 1.04

 	
  

 	
 Rounding

 	
  

 	
 26

 
	
  

 	
 1.05

 	
  

 	
 References to Agreements and Laws

 	
  

 	
 26

 
	
  

 	
 1.06

 	
  

 	
 Times of Day

 	
  

 	
 26

 
	
  

 	
 1.07

 	
  

 	
 Letter of Credit Amounts

 	
  

 	
 26

 
	
  

 	
 1.08

 	
  

 	
 Exchange Rates; Currency Equivalents

 	
  

 	
 26

 
	
  

 	
 1.09

 	
  

 	
 Additional Offshore Currencies

 	
  

 	
 27

 
	
  

 	
 1.10

 	
  

 	
 Change of Currency

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II

 	
  

 	
 THE COMMITMENTS AND CREDIT EXTENSIONS

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.01

 	
  

 	
 Loans

 	
  

 	
 28

 
	
  

 	
 2.02

 	
  

 	
 Procedures for Borrowing

 	
  

 	
 29

 
	
  

 	
 2.03

 	
  

 	
 Conversion and Continuation Elections for
 Borrowings

 	
  

 	
 30

 
	
  

 	
 2.04

 	
  

 	
 Utilization of Commitments in Offshore
 Currencies

 	
  

 	
 31

 
	
  

 	
 2.05

 	
  

 	
 Letters of Credit

 	
  

 	
 31

 
	
  

 	
 2.06

 	
  

 	
 Prepayments

 	
  

 	
 40

 
	
  

 	
 2.07

 	
  

 	
 Termination or Reduction of Commitments

 	
  

 	
 41

 
	
  

 	
 2.08

 	
  

 	
 Repayment of Loans

 	
  

 	
 41

 
	
  

 	
 2.09

 	
  

 	
 Interest

 	
  

 	
 41

 
	
  

 	
 2.10

 	
  

 	
 Fees

 	
  

 	
 42

 
	
  

 	
 2.11

 	
  

 	
 Computation of Interest and Fees and Dollar
 Equivalent Amounts; Retroactive Adjustments of Applicable Rate

 	
  

 	
 42

 
	
  

 	
 2.12

 	
  

 	
 Evidence of Debt

 	
  

 	
 43

 
	
  

 	
 2.13

 	
  

 	
 Payments Generally; Administrative Agent’s
 Clawback

 	
  

 	
 43

 
	
  

 	
 2.14

 	
  

 	
 Sharing of Payments by Lenders

 	
  

 	
 45

 
	
  

 	
 2.15

 	
  

 	
 Borrowing Subsidiaries; Company as agent
 for Borrowing Subsidiaries

 	
  

 	
 46

 
	
  

 	
 2.16

 	
  

 	
 Incremental Loans and Commitments

 	
  

 	
 47

 
	
  

 	
 2.17

 	
  

 	
 Defaulting Lenders

 	
  

 	
 49

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III

 	
  

 	
 TAXES, YIELD PROTECTION AND ILLEGALITY

 	
  

 	
 51

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.01

 	
  

 	
 Taxes

 	
  

 	
 51

 
	
  

 	
 3.02

 	
  

 	
 Changed Circumstances

 	
  

 	
 55

 
	
  

 	
 3.03

 	
  

 	
 Increased Costs

 	
  

 	
 56

 
	
  

 	
 3.04

 	
  

 	
 Funding Losses

 	
  

 	
 58

 
	
  

 	
 3.05

 	
  

 	
 Matters Applicable to all Requests for
 Compensation

 	
  

 	
 58

 
	
  

 	
 3.06

 	
  

 	
 Survival

 	
  

 	
 59

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV

 	
  

 	
 CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 	
  

 	
 59

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.01

 	
  

 	
 Conditions of Initial Credit Extension

 	
  

 	
 59

 

i

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.02

 	
  

 	
 Conditions to all Credit Extensions

 	
  

 	
 60

 
	
  

 	
 4.03

 	
  

 	
 Initial Credit Extension to Each Borrowing
 Subsidiary

 	
  

 	
 61

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V

 	
  

 	
 REPRESENTATIONS AND WARRANTIES

 	
  

 	
 62

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5.01

 	
  

 	
 Existence, Qualification and Power;
 Compliance with Laws

 	
  

 	
 62

 
	
  

 	
 5.02

 	
  

 	
 Authorization; No Contravention

 	
  

 	
 62

 
	
  

 	
 5.03

 	
  

 	
 Governmental Authorization; Other Consents

 	
  

 	
 62

 
	
  

 	
 5.04

 	
  

 	
 Binding Effect

 	
  

 	
 62

 
	
  

 	
 5.05

 	
  

 	
 Financial Statements; No Material Adverse
 Effect

 	
  

 	
 62

 
	
  

 	
 5.06

 	
  

 	
 Litigation

 	
  

 	
 63

 
	
  

 	
 5.07

 	
  

 	
 Environmental Compliance

 	
  

 	
 63

 
	
  

 	
 5.08

 	
  

 	
 Taxes

 	
  

 	
 64

 
	
  

 	
 5.09

 	
  

 	
 ERISA Compliance

 	
  

 	
 64

 
	
  

 	
 5.10

 	
  

 	
 Subsidiaries

 	
  

 	
 64

 
	
  

 	
 5.11

 	
  

 	
 Margin Regulations; Investment Company Act

 	
  

 	
 64

 
	
  

 	
 5.12

 	
  

 	
 Disclosure

 	
  

 	
 65

 
	
  

 	
 5.13

 	
  

 	
 Compliance with Laws

 	
  

 	
 65

 
	
  

 	
 5.14

 	
  

 	
 OFAC and PATRIOT Act

 	
  

 	
 65

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI

 	
  

 	
 AFFIRMATIVE COVENANTS

 	
  

 	
 65

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6.01

 	
  

 	
 Financial Statements

 	
  

 	
 65

 
	
  

 	
 6.02

 	
  

 	
 Certificates; Other Information

 	
  

 	
 66

 
	
  

 	
 6.03

 	
  

 	
 Notices

 	
  

 	
 68

 
	
  

 	
 6.04

 	
  

 	
 Payment of Obligations

 	
  

 	
 68

 
	
  

 	
 6.05

 	
  

 	
 Preservation of Existence, Etc

 	
  

 	
 68

 
	
  

 	
 6.06

 	
  

 	
 Maintenance of Properties

 	
  

 	
 69

 
	
  

 	
 6.07

 	
  

 	
 Maintenance of Insurance

 	
  

 	
 69

 
	
  

 	
 6.08

 	
  

 	
 Compliance with Laws

 	
  

 	
 69

 
	
  

 	
 6.09

 	
  

 	
 Books and Records

 	
  

 	
 69

 
	
  

 	
 6.10

 	
  

 	
 Inspection Rights

 	
  

 	
 69

 
	
  

 	
 6.11

 	
  

 	
 Use of Proceeds

 	
  

 	
 69

 
	
  

 	
 6.12

 	
  

 	
 Compliance with Environmental Laws

 	
  

 	
 69

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII

 	
 NEGATIVE COVENANTS

 	
  

 	
 70

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.01

 	
  

 	
 Liens

 	
  

 	
 70

 
	
  

 	
 7.02

 	
  

 	
 Fundamental Changes

 	
  

 	
 71

 
	
  

 	
 7.03

 	
  

 	
 Investments

 	
  

 	
 72

 
	
  

 	
 7.04

 	
  

 	
 Accounting Changes

 	
  

 	
 72

 
	
  

 	
 7.05

 	
  

 	
 Financial Covenants

 	
  

 	
 72

 
	
  

 	
 7.06

 	
  

 	
 Change in Nature of Business

 	
  

 	
 73

 
	
  

 	
 7.07

 	
  

 	
 Transactions with Affiliates

 	
  

 	
 73

 
	
  

 	
 7.08

 	
  

 	
 Use of Proceeds

 	
  

 	
 73

 
	
  

 	
 7.09

 	
  

 	
 Priority Debt

 	
  

 	
 73

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII

 	
  

 	
 EVENTS OF DEFAULT AND REMEDIES

 	
  

 	
 73

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.01

 	
  

 	
 Events of Default

 	
  

 	
 73

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.02

 	
  

 	
 Remedies Upon Event of Default

 	
  

 	
 75

 
	
  

 	
 8.03

 	
  

 	
 Application of Funds

 	
  

 	
 76

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX

 	
  

 	
 AGENT

 	
  

 	
 77

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.01

 	
  

 	
 Appointment and Authority

 	
  

 	
 77

 
	
  

 	
 9.02

 	
  

 	
 Rights as a Lender

 	
  

 	
 77

 
	
  

 	
 9.03

 	
  

 	
 Exculpatory Provisions

 	
  

 	
 78

 
	
  

 	
 9.04

 	
  

 	
 Reliance by Administrative Agent

 	
  

 	
 79

 
	
  

 	
 9.05

 	
  

 	
 Delegation of Duties

 	
  

 	
 79

 
	
  

 	
 9.06

 	
  

 	
 Resignation of Administrative Agent

 	
  

 	
 79

 
	
  

 	
 9.07

 	
  

 	
 Non-Reliance on Administrative Agent and
 Other Lenders

 	
  

 	
 80

 
	
  

 	
 9.08

 	
  

 	
 Administrative Agent May File Proofs of
 Claim

 	
  

 	
 81

 
	
  

 	
 9.09

 	
  

 	
 Cash Collateral and Guaranty Matters

 	
  

 	
 81

 
	
  

 	
 9.10

 	
  

 	
 Other Agents; Arrangers and Managers

 	
  

 	
 82

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X

 	
  

 	
 GUARANTEE

 	
  

 	
 82

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.01

 	
  

 	
 Unconditional Guarantee

 	
  

 	
 82

 
	
  

 	
 10.02

 	
  

 	
 Guarantee Absolute

 	
  

 	
 82

 
	
  

 	
 10.03

 	
  

 	
 Waivers

 	
  

 	
 83

 
	
  

 	
 10.04

 	
  

 	
 Subrogation

 	
  

 	
 83

 
	
  

 	
 10.05

 	
  

 	
 Survival

 	
  

 	
 84

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XI

 	
  

 	
 MISCELLANEOUS

 	
  

 	
 84

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.01

 	
  

 	
 Amendments, Etc

 	
  

 	
 84

 
	
  

 	
 11.02

 	
  

 	
 Notices; Effectiveness; Electronic
 Communication

 	
  

 	
 85

 
	
  

 	
 11.03

 	
  

 	
 No Waiver; Cumulative Remedies

 	
  

 	
 88

 
	
  

 	
 11.04

 	
  

 	
 Attorney Costs, Expenses and Taxes

 	
  

 	
 88

 
	
  

 	
 11.05

 	
  

 	
 Indemnification by the Borrowers

 	
  

 	
 88

 
	
  

 	
 11.06

 	
  

 	
 Payments Set Aside

 	
  

 	
 89

 
	
  

 	
 11.07

 	
  

 	
 Successors and Assigns

 	
  

 	
 90

 
	
  

 	
 11.08

 	
  

 	
 Treatment of Certain Information;
 Confidentiality

 	
  

 	
 94

 
	
  

 	
 11.09

 	
  

 	
 Set-off

 	
  

 	
 95

 
	
  

 	
 11.10

 	
  

 	
 Interest Rate Limitation

 	
  

 	
 95

 
	
  

 	
 11.11

 	
  

 	
 Counterparts; Effectiveness

 	
  

 	
 95

 
	
  

 	
 11.12

 	
  

 	
 Integration

 	
  

 	
 95

 
	
  

 	
 11.13

 	
  

 	
 Survival of Representations and Warranties

 	
  

 	
 96

 
	
  

 	
 11.14

 	
  

 	
 Severability

 	
  

 	
 96

 
	
  

 	
 11.15

 	
  

 	
 Replacement of Lenders

 	
  

 	
 96

 
	
  

 	
 11.16

 	
  

 	
 Automatic Debits of Fees

 	
  

 	
 97

 
	
  

 	
 11.17

 	
  

 	
 Governing Law

 	
  

 	
 97

 
	
  

 	
 11.18

 	
  

 	
 No Advisory or Fiduciary Responsibility

 	
  

 	
 98

 
	
  

 	
 11.19

 	
  

 	
 USA PATRIOT Act Notice

 	
  

 	
 98

 
	
  

 	
 11.20

 	
  

 	
 Judgment Currency

 	
  

 	
 99

 

iii

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SCHEDULES

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1

 	
  

 	
 Mandatory Cost Formulae

 	
  

 	
  

 
	
  

 	
 2.01

 	
  

 	
 Commitments and Pro Rata Shares

 	
  

 	
  

 
	
  

 	
 5.10

 	
  

 	
 Subsidiaries

 	
  

 	
  

 
	
  

 	
 7.01

 	
  

 	
 Existing Liens

 	
  

 	
  

 
	
  

 	
 7.03

 	
  

 	
 Existing Investments

 	
  

 	
  

 
	
  

 	
 11.02

 	
  

 	
 Administrative Agent’s Office, Certain Addresses for Notices

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 EXHIBITS

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Form of

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 A

 	
  

 	
 Borrowing Notice

 	
  

 	
  

 
	
  

 	
 B

 	
  

 	
 Notice of Conversion/Continuation

 	
  

 	
  

 
	
  

 	
 C

 	
  

 	
 Note

 	
  

 	
  

 
	
  

 	
 D

 	
  

 	
 Compliance Certificate

 	
  

 	
  

 
	
  

 	
 E

 	
  

 	
 Assignment and Assumption

 	
  

 	
  

 
	
  

 	
 F

 	
  

 	
 Guaranty

 	
  

 	
  

 
	
  

 	
 G

 	
  

 	
 U.S. Tax Compliance Certificate

 	
  

 	
  

 
	
  

 	
 H-1

 	
  

 	
 Borrowing Subsidiary Agreement

 	
  

 	
  

 
	
  

 	
 H-2

 	
  

 	
 Borrowing Subsidiary Termination

 	
  

 	
  

 

iv

CREDIT AGREEMENT

          This CREDIT
AGREEMENT (this “Agreement”) dated as of December 7, 2012 is among
DONALDSON COMPANY, INC., a Delaware corporation (the “Company”), the
subsidiaries listed on the signature pages hereof or which from time to time
become parties hereto pursuant to Section 2.15 (each a “Borrowing
Subsidiary” and collectively the “Borrowing Subsidiaries”), each
lender from time to time party hereto (collectively, the “Lenders” and
individually, each a “Lender”) and WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Administrative Agent and L/C Issuer.

          WHEREAS,
the Company has requested, and, subject to the terms and conditions hereof, the
Administrative Agent, the Lenders and the L/C Issuer have agreed to extend,
certain credit accommodations to the Borrowers on the terms and conditions of
this Agreement; and

          WHEREAS, in
order to induce the Administrative Agent, the Lenders and the L/C Issuer to
enter into or extend or continue to give financial accommodations under this
Agreement, (a) Donaldson Capital (as hereinafter defined) has agreed to
guarantee the Obligations of the Borrowers pursuant to the Guaranty and (b) the
Company has agreed to guarantee the Obligations of any Borrowing Subsidiary
pursuant to Article X.

          NOW,
THEREFORE, in consideration of the mutual agreements contained herein, the
parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

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

          “Acquisition”
means any transaction or series of related transactions for the purpose of or
resulting, directly or indirectly, in (a) the acquisition of all or substantially
all of the assets of a Person, or of any business or division of a Person, (b)
the acquisition of in excess of 50% of the capital stock, partnership
interests, membership interests or equity of any Person or otherwise causing
any Person to become a Subsidiary or (c) a merger or consolidation or any other
combination with another Person (other than a Person that is a Subsidiary); provided
that the Company or a Subsidiary is the surviving entity.

          “Administrative
Agent” means Wells Fargo in its capacity as administrative agent under any
of the Loan Documents, or any successor administrative agent.

          “Administrative
Agent Fee Letter” means the letter agreement dated October 29, 2012 from
the Administrative Agent and Wells Fargo Securities, LLC to (and acknowledged
by) the Company.

          “Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 11.02, or such other
address or account as the Administrative Agent may from time to time notify the
Company and the Lenders; provided that with respect to any payment in
any Offshore Currency, the Administrative Agent’s Office means 

1

such address as the Administrative Agent may from time to time specify
in accordance with Section 11.02.

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

          “Affiliate”
means, with respect to any 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. “Control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. “Controlling”
and “Controlled” have meanings correlative thereto. Without limiting the generality of the
foregoing, a Person shall be deemed to be Controlled by another Person if such
other Person possesses, directly or indirectly, power to vote 10% or more of
the securities having ordinary voting power for the election of directors,
managing general partners or the equivalent.

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

          “Agreed
Alternative Currency” means any currency approved as an Offshore Currency
pursuant to Section 1.09.

          “Agreement”
has the meaning specified in the introductory paragraph hereof.

          “Agreement
Currency” has the meaning specified in Section 11.20.

          “Applicable Currencies” means
Dollars and Offshore Currencies.

          “Applicable
Rate” means, from time to time, the following percentages per annum, based
upon the Leverage Ratio as set forth in the most recent Compliance Certificate
received by the Administrative Agent pursuant to Section 6.02(a):

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Pricing

 Level

 	
 Leverage
 Ratio

 	
 Facility
 Fee

 	
 LIBOR

 Rate &

 Letters of

 Credit

 	
 Base
 Rate

 
	
 1

 	
 <
 0.5x

 	
 0.08%

 	
 0.795%

 	
 0%

 
	
 2

 	
 > 0.5x, but < 1.0x 

 	
 0.10%

 	
 0.90%

 	
 0%

 
	
 3

 	
 > 1.0x, but < 1.5x

 	
 0.125%

 	
 1.0%

 	
 0%

 
	
 4

 	
 > 1.5x, but < 2.0x

 	
 0.15%

 	
 1.10%

 	
 0.10%

 
	
 5

 	
 > 2.0x

 	
 0.20%

 	
 1.175%

 	
 0.175%

 

          Initially,
the applicable Pricing Level shall be based upon the Leverage Ratio of the
Company and its Subsidiaries as at October 31, 2012 as set forth in the
certificate delivered pursuant to Section 4.01(a)(vii). Thereafter,
the applicable Pricing Level shall be adjusted, to the 

2

extent applicable, 45 days (or, in the case of the last fiscal quarter
of any fiscal year, 90 days) after the end of each fiscal quarter based on the
Leverage Ratio as of the last day of such fiscal quarter; provided that
if the Company fails to deliver the financial statements required by Section 6.01(a)
or (b), as applicable, and the related Compliance Certificate required
by Section 6.02(a) by the 45th day (or, if applicable, the 90th
day) after any fiscal quarter, Pricing Level 3 shall apply until such financial
statements are delivered.

          “Applicable
Time” means, with respect to any Borrowings and payments in any Offshore
Currency, the local time in the place of settlement for such Offshore Currency
as may be determined by the Administrative Agent or the L/C Issuer, as the case
may be, 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.

          “Arrangers”
means Wells Fargo Securities, LLC and U.S. Bank National Association, each in
its capacity as a joint lead arranger and a joint book manager.

          “Assignment
and Assumption” means an Assignment and Assumption substantially in the
form of Exhibit E.

          “Attorney
Costs” means and includes all reasonable and documented out-of-pocket fees,
expenses and disbursements of any law firm or other external counsel and,
without duplication, the allocated cost of internal legal services and all
expenses and disbursements of internal counsel.

          “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
of such Person prepared as of such date in accordance with GAAP, and (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 of such Person prepared as of such date in accordance with GAAP
if such lease were accounted for as a capital lease.

          “Audited
Financial Statements” means the audited consolidated balance sheet of the
Company and its Subsidiaries for the fiscal year ended July 31, 2012 and the
related consolidated statements of income or operations, shareholders’ equity
and cash flows for such fiscal year, including the notes thereto.

          “Availability
Period” means the period from and including the Effective 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.

3

          “Base
Rate” means, at any time, the highest of (a) the Prime Rate,
(b) the Federal Funds Rate plus 0.50% and (c) except during any
period of time during which a notice delivered to the Company under Section 3.02
shall remain in effect, LIBOR for an
Interest Period of one month plus 1%; each change in the Base Rate shall
take effect simultaneously with the corresponding change or changes in the
Prime Rate, the Federal Funds Rate or LIBOR.

          “Base
Rate Loan” means a Loan that bears
interest based on the Base Rate.

          “Borrowers”
means the Company and each Borrowing Subsidiary.

          “Borrowing”
means a borrowing consisting of simultaneous Loans of the same Type and in the
same Applicable Currency made to the same Borrower and, in the case of LIBOR
Rate Loans, having the same Interest Period made by the Lenders pursuant to Section 2.01
or Section 2.16.

          “Borrowing
Notice” means a notice of a Borrowing, pursuant to Section 2.02(a),
which, if in writing, shall be substantially in the form of Exhibit A.

          “Borrowing
Subsidiary” has the meaning specified in the introductory paragraph hereof.

          “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 LIBOR Rate Loan denominated
in Dollars, any fundings, disbursements, settlements and payments in Dollars in
respect of any such LIBOR Rate Loan, or any other dealings in Dollars to be
carried out pursuant to this Agreement in respect of any such LIBOR 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 LIBOR Rate Loan denominated
in Euro, any fundings, disbursements, settlements and payments in Euro in
respect of any such LIBOR Rate Loan, or any other dealings in Euro to be
carried out pursuant to this Agreement in respect of any such LIBOR Rate Loan,
means a TARGET Day;

          (c) if such
day relates to any interest rate settings as to a LIBOR 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; and

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

4

          “Cash
Collateralize” has the meaning specified in Section 2.05(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, implementation, or application
thereof by any Governmental Authority or (c) the making or issuance of any
request, rule, guideline or directive (whether or not having the force of law)
by any Governmental Authority; provided that notwithstanding anything
herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and
all requests, rules, guidelines or directives thereunder or issued in
connection therewith and (ii) all requests, rules, guidelines or directives
promulgated by the Bank for International Settlements, the Basel Committee on
Banking Supervision (or any successor or similar authority) or the United
States or foreign regulatory authorities, in each case pursuant to Basel III,
shall in each case be deemed to be a “Change in Law”, regardless of the date
enacted, adopted or issued.

          “Change
of Control” means an event or series of events by which: (i) any Person or
two or more Persons acting in concert shall have acquired beneficial ownership
(within the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act
of 1934), directly or indirectly, of Voting Stock of the Company (or other
securities convertible into such Voting Stock) representing 20% or more of the
combined voting power of all Voting Stock of the Company and shall have maintained
such beneficial ownership for 20 consecutive days; or (ii) during any period of
24 consecutive months, commencing before or after the date of this Agreement,
individuals who at the beginning of such 24-month period were directors of the
Company and individuals nominated to be directors of the Company by the management of the Company shall cease
for any reason to constitute a majority of the board of directors of the
Company; or (iii) any Person or two or more Persons acting in concert shall
have acquired by contract or otherwise, or shall have entered into a contract
or arrangement that, upon consummation, will result in its or their acquisition
of the power to exercise, directly or indirectly, a controlling influence over
the management or policies of the Company.

          “Code”
means the Internal Revenue Code of 1986.

          “Commitment”
means, as to each Lender, its obligation to (a) make Loans to the Borrowers
pursuant to Section 2.01 and (b) purchase participations in L/C
Obligations in an aggregate principal amount at any one time outstanding not to
exceed the 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. 

          “Communications”
means, collectively, any notice, demand, communication, information, document
or other material provided by or on behalf of any Loan Party pursuant to any
Loan Document or the transactions contemplated therein which is distributed to
the Administrative Agent, the L/C Issuer or any Lender by means of electronic
communications, including through the Platform.

          “Company”
has the meaning specified in the introductory paragraph hereof.

5

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

          “Consolidated
EBITDA” means, for any period, for the Company and its Subsidiaries on a
consolidated basis, an amount equal to Consolidated Net Income for such period plus,
to the extent deducted in calculating such Consolidated Net Income,
(i) Consolidated Interest Charges, (ii) provisions for federal,
state, local and foreign income taxes payable by the Company and its Subsidiaries,
(iii) depreciation and amortization expense, (iv) non-cash stock
compensation expenses of the Company and its Subsidiaries incurred in such
period and (v) other non-cash
charges, minus, to the extent included in calculating such Consolidated Net
Income, all non-cash gains. For any period during which (a) a
Subsidiary or business is acquired or (b) a Subsidiary or business is disposed
of, Consolidated EBITDA shall be calculated on a pro forma basis as if such
Subsidiary or business, as the case may be, had been acquired (and any related
Indebtedness incurred) or sold (and any related Indebtedness repaid), as the
case may be, on the first day of such period. 

          “Consolidated
Interest Charges” means, for any period, for the Company and its
Subsidiaries on a consolidated basis, the sum of (a) all interest, premium
payments, debt discount, fees, charges and related expenses of the Company and
its Subsidiaries in connection with borrowed money (including capitalized
interest) or the deferred purchase price of assets, in each case to the extent
treated as interest in accordance with GAAP, and (b) the portion of rent
expense of the Company and its Subsidiaries with respect to such period under
capital leases that is treated as interest in accordance with GAAP.

          “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) Consolidated Interest Charges for such
period.

          “Consolidated
Net Income” means, for any period, the consolidated net income of the
Company and its Subsidiaries for such period.

          “Consolidated
Net Worth” means, as of any date of determination, for the Company and its
Subsidiaries on a consolidated basis, Shareholders’ Equity of the Company and
its Subsidiaries on that date.

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

          “Control”
has the meaning specified in the definition of “Affiliate.”

          “Conversion/Continuation
Date” means any date on which, under Section 2.03, the Company
(a) converts Loans of one Type to the other Type or (b) continues as Loans of
the same Type, but with a new Interest Period, Loans having Interest Periods
expiring on such date.

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

6

          “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 passage of time or both, would be an Event of
Default.

          “Default
Rate” means an interest rate equal to (a) the Base Rate plus (b) the
Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per
annum; provided that with respect to a LIBOR Rate Loan, the Default Rate
shall be 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,
in each case to the fullest extent permitted by applicable Law.

          “Defaulting
Lender” means, subject to Section 2.17, any Lender that (a) has
failed to (i) fund all or any portion of the Loans or
participations in L/C Obligations required to be funded by it hereunder within two Business Days of the date such
Loans or participations were required to be funded hereunder unless such Lender
notifies the Administrative Agent and the Company in writing that such failure
is the result of such Lender’s determination that one or more conditions
precedent to funding (each of which conditions precedent, together with any
applicable default, shall be specifically identified in such writing) has not
been satisfied, or (ii) pay to the Administrative Agent, the L/C Issuer or any
other Lender any other amount required to be paid by it hereunder (including in
respect of its participation in Letters of Credit) within two Business Days of
the date when due, (b) has notified the Company, the Administrative Agent or the
L/C Issuer in writing that it does not intend to comply with its funding
obligations hereunder, or has made a public statement to that effect (unless
such writing or public statement relates to such Lender’s obligation to fund a
Loan hereunder and states that such position is based on such Lender’s
determination that a condition precedent to funding (which condition precedent,
together with any applicable default, shall be specifically identified in such
writing or public statement) cannot be satisfied), (c) has failed, within three
Business Days after written request by the Administrative Agent or the Company,
to confirm in writing to the Administrative Agent and the Company that it will
comply with its prospective funding obligations hereunder (provided that
such Lender shall cease to be a Defaulting Lender pursuant to this clause (c)
upon receipt of such written confirmation by the Administrative Agent and the
Company), or (d) has, or has a direct or indirect parent company that has, (i)
become the subject of a proceeding under any Debtor Relief Law, or (ii) had
appointed for it a receiver, custodian, conservator, trustee, administrator,
assignee for the benefit of creditors or similar Person charged with
reorganization or liquidation of its business or assets, including the Federal
Deposit Insurance Corporation or any other state or federal regulatory
authority acting in such a capacity; provided that a Lender shall not be
a Defaulting Lender solely by virtue of the ownership or acquisition of any
equity interest in that Lender or any direct or indirect parent company thereof
by a Governmental Authority so long as such ownership interest does not result
in or provide such Lender with immunity from the jurisdiction of courts within
the United States or from the enforcement of judgments or writs of attachment
on its assets or permit such Lender (or such Governmental Authority) to reject,
repudiate, disavow or disaffirm any contracts or agreements made with such
Lender. Any determination by the Administrative Agent that a Lender is a
Defaulting Lender 

7

under clauses (a) through (d) above shall be
conclusive and binding absent manifest error, and such Lender shall be deemed
to be a Defaulting Lender (subject to Section 2.17) upon delivery of
written notice of such determination to the Company, the L/C Issuer and each
Lender.

          “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 an
Offshore Currency, the equivalent amount in Dollars as reasonably determined by
the Administrative Agent 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 Offshore Currency.

          “Domestic
Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

          “Donaldson
Capital” means Donaldson Capital, Inc., a Minnesota corporation.

          “Effective
Date” means the first date all the conditions precedent in Section 4.01
are satisfied or waived in accordance with Section 4.01 (or, in the
case of Section 4.01(b), waived by the Person entitled to receive
the applicable payment).

          “EMU” means 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
legislative measures of the European Council for the introduction of,
changeover to or operation of a single or unified European currency (whether
known as the euro or otherwise), being in part the implementation of the third
stage of EMU. 

          “Environmental
Action” means any action, suit, demand, demand letter, claim, notice of
non-compliance or violation, notice of liability or potential liability,
investigation, proceeding, consent order or consent agreement relating in any
way to any Environmental Law, Environmental Permit or Hazardous Materials or
arising from alleged injury or threat of injury to health, safety or the
environment, including (a) by any Governmental Authority for enforcement,
cleanup, removal, response, remedial or other actions or damages and (b) by any
Governmental Authority or any third party for damages, contribution,
indemnification, cost recovery, compensation or injunctive relief.

          “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 governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

          “Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Company, any other Loan Party or any of their respective
Subsidiaries directly or indirectly 

8

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,
(d) the release or threatened release of any Hazardous Materials into the environment
or (e) any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.

          “Environmental
Permit” means any permit, approval, identification number, license or other
authorization required under any Environmental Law.

          “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 Company 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 Company 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 Company 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, the
treatment of a Plan amendment as a termination under Section 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
Company or any ERISA Affiliate.

          “Euro”
and “EUR” means the single currency of the participating member states
of the European Union.

          “Eurodollar
Reserve Percentage” means, for any day, the percentage (expressed as a
decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%)
which is in effect for such day as prescribed by the Board of Governors of the
Federal Reserve System (or any successor) for determining the maximum reserve
requirement (including, without limitation, any basic, supplemental or
emergency reserves) in respect of eurocurrency liabilities or any similar
category of liabilities for a member bank of the Federal Reserve System in New
York City.

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

          “Excluded
Taxes” means any of
the following Taxes imposed on or with respect to a Recipient or required to be
withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or
measured by overall net income (however denominated), franchise Taxes, and
branch profits Taxes, in each case, (i) imposed as a result of such Recipient
being organized under the laws of, or having its principal office or, in the
case of any Lender, its applicable 

9

lending office located in, the jurisdiction
imposing such Tax (or any political subdivision thereof) or (ii) that are
Other Connection Taxes, (b) in the case of a Foreign Lender, U.S. federal
withholding Taxes imposed on amounts payable to or for the account of such
Lender with respect to an applicable interest in a Loan or Commitment pursuant
to a law in effect on the date on which (i) such Lender acquires such interest in the
Loan or Commitment (other than pursuant
to an assignment request by the Company under Section 11.15) or (ii) such Lender changes its lending office,
except in each case to the extent that, pursuant to Section 11.15,
amounts with respect to such Taxes were payable either to such Lender’s
assignor immediately before such Lender became a party hereto or to such Lender
immediately before it changed its lending office, (c) Taxes attributable to
such Recipient’s failure (other than as a result of a Change in Law) to comply
with Section 3.01(f) and (d) any U.S. federal withholding Taxes imposed
under FATCA. 

          “Existing
Credit Agreement” means the Second Amended and Restated Credit Agreement
dated April 2, 2007 (as in effect immediately prior to the effectiveness of
this Agreement) among the Company, the various financial institutions party
thereto as lenders and Bank of America, N.A., as administrative agent
thereunder.

          “FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this
Agreement (or any amended or
successor version that is
substantively comparable and not materially more onerous to comply with) and any current
or future regulations or official interpretations thereof.

          “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 (or,
if such day is not a Business Day, for the immediately preceding Business Day),
as published by the Federal Reserve Bank of New York on the Business Day next
succeeding such day, provided that if such rate is not so published for
any day which is a Business Day, the average of the quotation for such day on
such transactions received by the Administrative Agent from three federal funds
brokers of recognized standing selected by the Administrative Agent.

          “Fee
Letters” means, collectively, (a) the Administrative Agent Fee Letter and
(b) the U.S. Bank Fee Letter.

          “Foreign
Lender” means a Lender that is not a U.S. Person. 

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

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

          “Fronting
Exposure” means,
at any time there is a Defaulting Lender, such Defaulting Lender’s Pro Rata
Share of the outstanding L/C Obligations other than L/C Obligations as to which
such Defaulting Lender’s participation obligation has been reallocated to other
Lenders or Cash Collateralized in accordance with the terms hereof.

10

          “GAAP”
means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or such other
principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of
the date of determination, consistently applied.

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

          “Guarantee”
means, as to any Person, 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 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). 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 in respect thereof as determined by
the guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning.

          “Guaranteed
Obligations” has the meaning specified in Section 10.01.

          “Guaranty”
means the Guaranty made by Donaldson Capital in favor of the Administrative
Agent on behalf of the Lenders, substantially in the form of Exhibit F.

          “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.

          “Honor
Date” has the meaning specified in Section 2.05(c)(i).

          “Increased
Amount Date” has the meaning specified in Section 2.16(a).

          “Incremental
Lender” has the meaning specified in Section 2.16(a).

11

          “Incremental
Loan Commitments” has the meaning specified in Section 2.16(a)(ii).

          “Incremental
Loans” has the meaning specified in Section 2.16(a)(ii).

          “Incremental
Revolving Credit Commitment” has the meaning specified in Section
2.16(a)(ii).

          “Incremental
Revolving Credit Increase” has the meaning specified in Section
2.16(a)(ii).

          “Incremental
Term Loan” has the meaning specified in Section 2.16(a)(i).

          “Incremental
Term Loan Commitment” has the meaning specified in Section 2.16(a)(i).

          “Indebtedness”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

          (a) all
obligations of such Person for borrowed money and all 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, bank guaranties,
surety bonds and similar instruments;

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

          (d) all
obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable, accrued expenses in the ordinary
course of business and contingent purchase price obligations before the required
event has occurred);

          (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; provided
that, if such Person has not assumed or become liable for the payment of such
indebtedness, the amount of such indebtedness shall be equal to the lesser of
(i) such indebtedness and (ii) the fair market value of such property
subject to such Lien;

          (f) capital
leases and Synthetic Lease Obligations; 

          (g) all
sales by such Person of (i) accounts or general intangibles for money due or to
become due, (ii) chattel paper, instruments or documents creating or evidencing
a right to payment of money or (iii) other receivables (collectively “receivables”),
whether pursuant to a purchase facility or otherwise, other than in connection
with the disposition of the business operations of such Person relating thereto
or a disposition of defaulted receivables for collection and not as a financing
arrangement, and together with any obligation of such Person to pay any
discount, interest, fees, indemnities, penalties, recourse, expenses or other
amounts in connection therewith; and

12

          (h) 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, unless such Indebtedness is expressly made
non-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 or Synthetic Lease Obligation
as of any date shall be deemed to be the amount of Attributable Indebtedness in
respect thereof as of such date. The amount of any Indebtedness represented by
a sale of receivables at any time shall be the amount of unrecovered capital or
principal investment of the purchaser (other than the Company or any of its
Wholly-Owned Subsidiaries) thereof, excluding any amount representing yield or
interest earned on such investment.

          “Indemnified
Liabilities” has the meaning set forth in Section 11.05.

          “Indemnified
Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with
respect to any payment made by or on account of any obligation of any Loan
Party under any Loan Document and (b) to the extent not otherwise described in
(a), Other Taxes.

          “Indemnitees”
has the meaning set forth in Section 11.05.

          “Intangible
Assets” means assets that are considered to be intangible assets under
GAAP, including customer lists, goodwill, computer software, copyrights, trade
names, trademarks, patents, franchises, licenses, unamortized deferred charges,
unamortized debt discount and capitalized research and development costs.

          “Interest
Payment Date” means, (a) as to any LIBOR Rate Loan, the last day of each
Interest Period applicable to such Loan and the Maturity Date, provided that if
any Interest Period for a LIBOR 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, the last
Business Day of each March, June, September and December and the Maturity Date.

          “Interest
Period” means, as to any LIBOR Rate Loan, the period commencing on the date
such LIBOR Rate Loan is disbursed or converted to or continued as a LIBOR Rate
Loan and ending on the date one, two, three or six months thereafter, as
selected by the applicable Borrower in its Borrowing Notice or Notice of
Conversion/Continuation; provided that:

	
  

 	
  

 
	
  

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

 

13

	
  

 	
  

 
	
  

 	
 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.

 

          “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 or (c) the purchase or other acquisition (in one transaction or a
series of transactions) of assets of another Person that constitute a business
unit. 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.

          “IRS”
means the United States Internal Revenue Service, and any Governmental
Authority succeeding to any of its principal functions under the Code.

          “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 a Borrower or in favor of the L/C Issuer and relating to any
such Letter of Credit.

          “Judgment
Currency” has the meaning specified in Section 11.20.

          “Laws”
means, collectively, all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

          “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 Pro Rata Share.

          “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 Borrowing.

          “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 Wells Fargo in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.

          “L/C
Obligations” means, as at any date of determination, the aggregate undrawn
Dollar Equivalent amount of all outstanding Letters of Credit plus the
aggregate Dollar Equivalent of all Unreimbursed Amounts, including all
outstanding L/C Borrowings. For all purposes of this Agreement, if on any date
of determination a Letter of Credit has expired by its terms but any

14

amount may still be drawn thereunder by reason of the operation of Rule
3.14 of the International Standby Practices 1998 Code published by the
Institute of International Banking Law & Practice (or such later version
thereof as may be in effect at the time of such issuance), 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 L/C Issuer.

          “Lender
Joinder Agreement” means a joinder agreement in form and substance
reasonably satisfactory to the Administrative Agent delivered in connection
with Section 2.16.

          “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 the Company and the
Administrative Agent.

          “Letter
of Credit” means any letter of credit issued hereunder. A Letter of Credit may be a commercial letter
of credit or a standby letter of credit.

          “Letter
of Credit Application” means an application and agreement for the issuance
or amendment of a Letter of Credit in such form as shall at any time be in use
by the L/C Issuer.

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

          “Leverage
Ratio” means, as of any date of determination, for the Company and its
Subsidiaries on a consolidated basis, the ratio of (a) Total Indebtedness of
the Company and its Subsidiaries as of such date to (b) Consolidated EBITDA for the period of the four fiscal
quarters ending on such date.

          “LIBOR”
means,

	
  

 	
  

 
	
  

 	
           (a) for
 any interest rate calculation with respect to a LIBOR Rate Loan denominated
 in Dollars or any Offshore Currency other than Euros, the rate of interest
 per annum determined on the basis of the rate for deposits in the applicable
 currency for a period equal to the applicable Interest Period which appears
 on Reuters Screen LIBOR01 Page (or any applicable successor page) at
 approximately 11:00 a.m. (London time) two (2) Business Days prior to the
 first day of the applicable Interest Period (rounded upward, if necessary, to
 the nearest 1/100th of 1%). If such rate is not available at such
 time for any reason, then “LIBOR” shall be determined by the Administrative
 Agent to be the arithmetic average of the rate per annum at which deposits in
 the applicable currency in minimum amounts of at least $5,000,000 would be
 offered by first class banks in the London interbank market to the Administrative
 Agent at approximately 11:00 a.m. (London time) two (2) Business Days prior
 to the first day of the applicable Interest Period for a period equal to such
 Interest Period; 

 

15

	
  

 	
  

 
	
  

 	
           (b) for any interest rate calculation with
 respect to a LIBOR Rate Loan denominated in Euros for any Interest Period,
 the rate appearing on the Reuters Screen EURIBOR01 Page (it being understood
 that this rate is the Euro interbank offered rate (known as the “EURIBOR
 Rate”) sponsored by the Banking Federation of the European Union and the
 Financial Markets Association) at 11:00 a.m., Brussels time, on the
 day on which quotations would normally be given by prime banks in the London
 interbank market for deposits in Euros for delivery on the first day of such
 Interest Period (provided that if quotations would normally be given
 on more than one date, the day for such Interest Period shall be the last of
 such dates), as the rate for deposits
 in Euros with a maturity comparable to such Interest Period; and

 
	
  

 	
  

 
	
  

 	
           (c) for
 any interest rate calculation with respect to a Base Rate Loan, the rate of
 interest per annum determined on the basis of the rate for deposits in
 Dollars in minimum amounts of at least $5,000,000 for a period equal to one
 month (commencing on the date of determination of such interest rate) which
 appears on the Reuters Screen LIBOR01 Page (or any applicable successor page)
 at approximately 11:00 a.m. (London time) on such date of determination, or,
 if such date is not a Business Day, then the immediately preceding Business
 Day (rounded upward, if necessary, to the nearest 1/100th of 1%). If, for any
 reason, such rate does not appear on Reuters Screen LIBOR01 Page (or any
 successor page) then “LIBOR” for such Base Rate Loan shall be determined by the
 Administrative Agent to be the arithmetic average of the rate per annum at
 which deposits in Dollars in minimum amounts of at least $5,000,000 would be
 offered by first class banks in the London interbank market to the
 Administrative Agent at approximately 11:00 a.m. (London time) on such date
 of determination for a period equal to one month commencing on such date of
 determination. 

 

          Each
calculation by the Administrative Agent of LIBOR shall be conclusive and
binding for all purposes, absent manifest error.

          “LIBOR
Rate” means a rate per annum (rounded upwards, if necessary, to the next
higher 1/100th of 1%) determined by the Administrative Agent pursuant to the
following formula:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 LIBOR Rate =

 	
  

 	
 LIBOR

 	
  

 
	
  

 	
  

 	
  

 	
 1.00-Eurodollar Reserve Percentage

 	
  

 

           “LIBOR
Rate Loan” means any Loan (other than a Base Rate Loan) bearing interest at
a rate based upon the LIBOR Rate as provided in Section 2.09. LIBOR Rate
Loans may be denominated in Dollars or in an Offshore Currency. All Loans denominated
in an Offshore Currency must be LIBOR Rate Loans.

          “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 of any kind or nature
whatsoever (including any conditional sale or other title retention agreement,
and any financing lease having substantially the same economic effect as any of
the foregoing).

16

          “Loan”
has the meaning specified in Section 2.01. 

          “Loan
Documents” means this Agreement, each Note, each Borrowing Subsidiary
Agreement, the Fee Letters, the
Guaranty, each amendment of any of the foregoing and any other agreement, from
time to time, designated as a Loan Document by the Administrative Agent and the
Company.

          “Loan
Parties” means, collectively, the Company, each Borrowing Subsidiary and Donaldson Capital.

          “Mandatory
Cost” means the percentage rate per annum calculated by the Administrative
Agent in accordance with Schedule 2.

          “Material
Adverse Effect” means: (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual
or contingent) or condition (financial or otherwise) of the Company and its
Subsidiaries taken as a whole; (b) a material impairment of the ability of any
Loan Party to perform its obligations under any Loan Document to which it is a
party; or (c) a material adverse effect upon the legality, validity, binding
effect or enforceability against any Loan Party of any Loan Document to which
it is a party.

          “Maturity
Date” means December 7, 2017.

          “Minimum
Tranche” means, in respect of Loans comprising part of the same Borrowing,
or to be converted or continued under Section 2.03, (a) in the case
of Base Rate Loans, $1,000,000 or any higher integral multiple of $500,000, and
(b) in the case of LIBOR Rate Loans, the Dollar Equivalent amount of $5,000,000
or any higher integral multiple of 1,000,000 units of the Applicable Currency
in excess thereof.

          “Multiemployer
Plan” means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA, to which the Company or any ERISA Affiliate
makes or is obligated to make contributions, or during the preceding five plan
years, has made or been obligated to make contributions.

          “Non-Defaulting
Lender” means, at any time, each Lender that is not a Defaulting Lender
at such time.

          “Notes”
means any promissory notes made by the Borrowers in favor of a Lender
evidencing Loans made by such Lender, substantially in the form of Exhibit C.

          “Notice
of Conversion/Continuation” means a notice in substantially the form of Exhibit B.

          “Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, any Loan Party arising under any Loan Document or otherwise with
respect to any Loan or Letter of Credit, whether direct or indirect (including
those acquired by assumption), absolute or contingent, due or to become due,
now existing or hereafter arising and including interest and fees that accrue
after the commencement by or against any Loan Party or any Affiliate thereof of
any proceeding under any Debtor Relief Law naming such Person as the

17

debtor in such proceeding, regardless of whether such interest and fees
are allowed claims in such proceeding.

          “OFAC”
means the U.S. Department of the Treasury’s Office of Foreign Assets Control.

          “Offshore
Currency” means, at any time, Euros, Sterling, the lawful currency of Japan
and any Agreed Alternative Currency.

          “Offshore
Currency Equivalent” means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable
Offshore Currency as determined by the Administrative Agent 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 Offshore
Currency with Dollars.

          “Offshore
Currency Loan” means any LIBOR Rate Loan denominated in an Offshore
Currency.

          “Offshore
Currency Loan Sublimit” means, as to all Offshore Currencies in the
aggregate, $75,000,000.

          “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
Connection Taxes” means, with respect to any Recipient, Taxes imposed as a
result of a present or former connection between such Recipient and
the jurisdiction imposing such Tax (other than connections arising from such
Recipient having executed, delivered, become a party to, performed its
obligations under, received payments under, received or perfected a security
interest under, engaged in any other transaction pursuant to or enforced any
Loan Document, or sold or assigned an interest in any Loan or Loan Document).

          “Other
Taxes” means all
present or future stamp, court, documentary, excise, property, intangible,
recording, filing or similar Taxes that arise from any payment made under, from
the execution, delivery, performance, enforcement or registration of, from the
receipt or perfection of a security interest under, or otherwise with respect
to, any Loan Document. 

          “Outstanding
Amount” means (i) with respect to Loans on any date, the aggregate
outstanding principal Dollar Equivalent amount thereof after giving effect to
any borrowings and prepayments or repayments of Loans, as the case may be,
occurring on such date and (ii) with respect to L/C Obligations on any date, the Dollar Equivalent amount of such L/C Obligations on

18

such
date after giving effect to any L/C Credit Extension occurring on such date and
any other change in the aggregate amount of the L/C Obligations as of such
date, including as a result of any reimbursement of any outstanding unpaid
drawing under any Letter of Credit, any expiration of a Letter of Credit, or
any reduction in the maximum amount available for drawing under any Letter of
Credit taking effect on such date.

          “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 or the L/C Issuer, as the case may be,
in accordance with banking industry rules on interbank compensation, and (b)
with respect to any amount denominated in an Offshore Currency, the rate of
interest per annum at which overnight deposits in the applicable Offshore
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 Wells Fargo in the applicable offshore interbank market for such
currency to major banks in such interbank market.

          “Participant”
has the meaning specified in Section 11.07(d).

          “Participant
Register” has the meaning specified in Section 11.07(e).

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

          “PATRIOT
Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)), as amended.

          “PBGC”
means the Pension Benefit Guaranty Corporation, or any Governmental Authority
succeeding to any of its principal functions under ERISA.

          “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 Company or any ERISA
Affiliate or to which the Company 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, has made contributions at any time
during the immediately preceding five plan years.

          “Permitted
Acquisition” means an Acquisition that meets each of the following
requirements: (a) the Person to be acquired is, or the assets to be acquired
are for use in, in the same, a similar or a directly related line of business
as the Company, (b) in the case of the Acquisition of a Person, such
Acquisition has been approved by the board of directors or similar governing
body and, if applicable, the shareholders of the Person to be acquired, (c) the
Company is and will be in pro forma compliance with each of the financial
covenants contained in Section 7.05 before and after giving effect
to such Acquisition and (d) no Default shall exist at the time of, or shall
result from, such Acquisition.

          “Permitted
Liens” means such of the following as to which no enforcement, collection,
execution, levy or foreclosure proceeding shall have been commenced: (a) Liens
for taxes, assessments and governmental charges or levies to the extent not
required to be paid under

19

Section 6.04; (b) Liens imposed by law,
such as materialmen’s, mechanics’, carriers’, workmen’s, landlords’ and
repairmen’s Liens and other similar Liens arising in the ordinary course of
business securing obligations that are not overdue for a period of more than 45
days; (c) pledges or deposits made or incurred in the ordinary course of
business in connection with worker’s compensation, unemployment insurance, old
age benefits, social security obligations, taxes, assessments, other statutory
or regulatory obligations, performance bonds and bid, completion, guaranty,
surety or similar bonds or other similar charges (other than Liens arising
under ERISA), good faith cash deposits or Liens on cash in connection with
ordinary course contracts or leases to which the Company or any Subsidiary is a
party or other cash deposits required to be made in the ordinary course of
business, provided in each case that the obligation is not for borrowed money
and is not in connection with any failure to pay any related amount, whether or
not disputed, and (d) easements, rights of way, restrictions, covenants,
zoning requirements and other encumbrances on title to real property along with
other minor defects and irregularities in title that do not render title to the
property encumbered thereby unmarketable or materially adversely affect the use
of such property for its present purposes.

          “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) established by the Company 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 11.02(c)(i).

          “Prime
Rate” means, at any time, the rate of interest per annum publicly announced
from time to time by the Administrative Agent as its prime rate. Each change in
the Prime Rate shall be effective as of the opening of business on the day such
change in such prime rate occurs. The parties hereto acknowledge that the rate
announced publicly by the Administrative Agent as its prime rate is an index or
base rate and shall not necessarily be its lowest or best rate charged to its
customers or other banks.

          “Priority
Debt” means, as
of any date, the sum (without duplication) of (a) unsecured Indebtedness of
Subsidiaries on such date (other than (i) Indebtedness owed to the Company or
another Subsidiary, (ii) Indebtedness of a Person outstanding at the time such
Person is merged or consolidated with, or becomes, a Subsidiary,
(iii) endorsement of items for deposit or collection of commercial paper
received in the ordinary course of business, (iv) obligations of any
Subsidiary in respect of performance bonds and completion, guarantee, surety,
and similar bonds, in each case obtained in the ordinary course of business to
support statutory and contractual obligations arising in the ordinary course of
business, (v) obligations arising from trust arrangements related to
payment of employee compensation and benefits, and (vi) guaranties by a
Loan Party of the Obligations) and (b) Indebtedness of the Company and its
Subsidiaries secured by Liens permitted by Section 7.01(o) on such date.

          “Private
Lender” has the meaning specified in Section 6.02.

20

          “Pro
Rata Share” means, with respect to each Lender at any time, a fraction
(expressed as a percentage, carried out to the ninth decimal place), the
numerator of which is the amount of the Commitment of such Lender at such time
and the denominator of which is the amount of the Aggregate Commitments at such
time; provided that 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, then the Pro Rata Share of each Lender shall be determined based on
the Pro Rata Share of such Lender immediately prior to such termination and
after giving effect to any subsequent assignments made pursuant to the terms
hereof. The Pro Rata Share of each Lender as of the Effective Date is set forth
opposite the name of such Lender on Schedule 2.01.

          “Public
Lender” has the meaning specified in Section 6.02.

          “Recipient”
means (a) the Administrative Agent, (b) any Lender and (c) any L/C Issuer, as
applicable.

          “Register”
has the meaning set forth in Section 11.07(c).

          “Related
Parties” means, with respect to any Person, such Person’s Affiliates and
the partners, directors, officers, employees, agents and advisors 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 Borrowing
Notice, (b) with respect to a conversion or continuation of Loans, a Notice of
Conversion/Continuation and (c) with respect to an L/C Credit Extension, a
Letter of Credit Application.

          “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, 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 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.

          “Responsible
Officer” means the chief executive officer, president, chief financial
officer, treasurer or assistant treasurer of a Loan Party. 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.

          “Revaluation
Date” means (a) with respect to any Loan, each of the following: (i) each
date of a Borrowing of a LIBOR Rate Loan denominated in an Offshore Currency,
(ii) each date 

21

of a continuation of a LIBOR Rate Loan denominated in an Offshore
Currency pursuant to Section 2.02, (iii) the last Business Day of
each month, 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 Offshore 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) the last Business Day of
each month, (iv) each date of any payment by the L/C Issuer under any Letter of
Credit denominated in an Offshore Currency, and (v) such additional dates as
the Administrative Agent or the L/C Issuer shall determine or the Required
Lenders shall require.

          “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 Offshore Currency, same day or other funds as may be reasonably
determined by the Administrative Agent to be customary in the place of
disbursement or payment for the settlement of international banking
transactions in the relevant Offshore Currency.

          “Sanctioned
Country” means a country subject to a sanctions program identified on the
list maintained by OFAC and available at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx,
or as otherwise published from time to time.

          “Sanctioned
Person” means (a) a Person named on the list of “Specially Designated
Nationals and Blocked Persons” maintained by OFAC available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx,
or as otherwise published from time to time, or (b) (i) an agency of the
government of a Sanctioned Country, (ii) an organization controlled by a
Sanctioned Country, or (iii) a person resident in a Sanctioned Country, to the
extent subject to a sanctions program administered by OFAC.

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

          “Shareholders’
Equity” means, as of any date of determination, consolidated shareholders’
equity of the Company and its Subsidiaries as of that date determined in
accordance with GAAP.

          “Spot
Rate” for a currency means the rate determined by the Administrative Agent
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 Business Days prior to the date as of
which the foreign exchange computation is made; provided that
the Administrative Agent or the L/C Issuer may obtain such spot rate from
another financial institution designated by the Administrative Agent or the L/C
Issuer if the 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 Offshore Currency.

22

          “Sterling”
means the lawful currency of the United Kingdom and Northern Ireland.

          “Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the 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 Company.

          “Swap
Contract” means (a) 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
transaction or any combination of any of the foregoing (including any option to
enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement and (b) any and all
transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement or any other master agreement
(any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under 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).

          “Synthetic
Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease or (b) an
agreement for the use or possession of property creating obligations that do
not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as the indebtedness of
such Person (without regard to accounting treatment).

          “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) determined by
the Administrative Agent to be a suitable replacement) is open for the settlement
of payments in Euro.

23

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

          “Threshold
Amount” means $50,000,000 (or
the Dollar Equivalent thereof in any currency other than Dollars).

          “Total
Indebtedness” means all Indebtedness of the Company and its Subsidiaries,
excluding (i) contingent obligations in respect of letters of credit and
Guarantees (except, in each case, to the extent constituting Guarantees in
respect of Indebtedness of a Person other than the Company or any Subsidiary),
(ii) obligations under Swap Contracts and (iii) Indebtedness of the Company to
Subsidiaries and Indebtedness of Subsidiaries to the Company or to other
Subsidiaries.

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

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

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

          “U.S.
Bank Fee Letter” means the letter agreement dated October 29, 2012 from
U.S. Bank National Association to (and acknowledged by) the Company.

          “U.S.
Person” means any Person that is a “United
States Person” as defined in Section 7701(a)(30) of the Code.

          “U.S.
Tax Compliance Certificate” has the meaning assigned to such term in Section 3.01(f).

          “Unreimbursed
Amount” has the meaning set forth in Section 2.05(c)(i).

          “Voting
Stock” means capital stock issued by a corporation, or equivalent interests
in any other Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons
performing similar functions) of such Person, even if the right so to vote has
been suspended by the happening of such a contingency.

          “Wells
Fargo” means Wells Fargo Bank, National Association, a national banking
association, and its successors.

          “Wholly-Owned
Subsidiary” of a Person means (a) any Subsidiary all of the outstanding
voting securities (other than directors’ qualifying shares and other nominal
amounts of shares held by Persons other than the Borrowers and their
Subsidiaries in accordance with applicable law) of which are at the time owned
or controlled, directly or indirectly, by such Person or one or more Wholly-Owned
Subsidiaries of such Person, or by such Person and one or more Wholly-Owned
subsidiaries of such Person, or (b) any partnership, limited liability company,
unlimited 

24

liability company, association, joint venture or similar business
organization 100% of the ownership interests having ordinary voting power
(other than directors’ qualifying shares and other nominal amounts of shares
held by Persons other than the Borrowers and their Subsidiaries in accordance
with applicable law) of which are the time so owned or controlled. Unless
otherwise specified, all references herein to a “Wholly-Owned Subsidiary” or to
“Wholly-Owned Subsidiaries” shall refer to a Wholly-Owned Subsidiary or
Wholly-Owned Subsidiaries of the Company.

          “Withdrawal
Liability” has the meaning specified in Part I of Subtitle E of Title IV of
ERISA.

          “Withholding
Agent” means any Loan Party and the Administrative Agent.

          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
meanings of defined terms are equally applicable to the singular and plural
forms of the defined terms.

	
  (b)

 	
 (i)

 	
 The words “herein,” “hereto,” “hereof” and “hereunder”
and words of similar import when used in any Loan Document shall refer to such
Loan Document as a whole and not to any particular provision thereof.

 
	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 Article, Section, Exhibit and Schedule references are to the Loan Document in
 which such reference appears.

 
	
  

 
	
  

 	
 (iii)

 	
 The term “including” is by way of example and not limitation.

 
	
  

 
	
  

 	
 (iv)

 	
 The
 term “documents” includes any and all instruments, documents,
 agreements, certificates, notices, reports, financial statements and other
 writings, however evidenced, whether in physical or electronic form.

 
	
  

 
	
  

 	
 (v)

 	
 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.”

 
	
  

 
	
  

 	
 (vi)

 	
 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.

 
	
  

 
	
  

 	
 (vii)

 	
 Except to the extent otherwise specified, references herein to “fiscal
 quarter” and “fiscal year” mean such fiscal periods of the Company.

 

          1.03
Accounting Terms. (a) 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

25

time, applied in a manner consistent with that used in preparing the
Audited Financial Statements, except as otherwise specifically
prescribed herein.

          (b) If at
any time any change in GAAP would affect the computation of any financial ratio
or requirement set forth in any Loan Document, and either the Company or the
Required Lenders shall so request, the Administrative Agent, the Lenders and
the Borrowers shall negotiate in good faith to amend such ratio or requirement
to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders); provided that,
until so amended, (i) such ratio or requirement shall continue to be computed
in accordance with GAAP prior to such change therein and (ii) the Company
shall provide to the Administrative Agent and the Lenders financial statements
and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

          1.04
Rounding. Any financial ratio required to be
maintained by the Company pursuant to this Agreement shall be calculated by
dividing the appropriate component by the other component, carrying the result
to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up
if there is no nearest number).

          1.05
References to Agreements and Laws. Unless otherwise
expressly provided herein: (a) references to Organization Documents, agreements
(including the Loan Documents) and other contractual instruments shall be
deemed to include all subsequent amendments, restatements, extensions,
supplements and other modifications thereto, but only to the extent that such
amendments, restatements, extensions, supplements and other modifications are
not prohibited by any Loan Document; and (b) references to any Law shall
include all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting such Law.

          1.06
Times of Day. Unless otherwise specified, all
references herein to times of day shall be references to Central time (daylight
or standard, as applicable).

          1.07
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 maximum undrawn amount of such Letter of Credit in
effect at such time; provided 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 undrawn amount of such Letter of Credit after giving effect to all
such increases, whether or not such maximum undrawn amount is in effect at such
time.

          1.08
Exchange Rates; Currency Equivalents. (a) The
Administrative Agent 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

26

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 determined
by the Administrative Agent or the L/C Issuer, as applicable.

          (b)
Wherever in this Agreement in connection with a Borrowing, conversion,
continuation or prepayment of a LIBOR 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, LIBOR Rate Loan
or Letter of Credit is denominated in an Offshore Currency, such amount shall
be the relevant Offshore Currency Equivalent of such Dollar amount (rounded to
the nearest unit of such Offshore Currency, with 0.5 of a unit being rounded
upward), as determined by the Administrative Agent or the L/C Issuer, as the
case may be.

          1.09
Additional Offshore Currencies. (a) The Company may
from time to time request that LIBOR Rate Loans be made and/or Letters of
Credit be issued in a currency other than those specifically listed in the
definition of “Offshore Currency;” provided that such requested currency is a
lawful 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 LIBOR Rate Loans, such request shall be subject to the
approval of the Administrative Agent and the Lenders; 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., 10 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 Letters of Credit, the L/C Issuer,
in its or their sole discretion). In the case of any such request pertaining to
LIBOR 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. Each
Lender (in the case of any such request pertaining to LIBOR Rate Loans) or the
L/C Issuer (in the case of a request pertaining to Letters of Credit) shall
notify the Administrative Agent, not later than 11:00 a.m., ten Business Days
(or such shorter time as may have been agreed to by the Administrative Agent
and the L/C Issuer) after receipt of such request whether it consents, in its
sole discretion, to the making of LIBOR Rate Loans or the issuance of Letters
of Credit, as the case may be, in such requested currency.

          (c) Any
failure by a Lender or the L/C Issuer, 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, as the case may be, to
permit LIBOR Rate Loans to be made or Letters of Credit to be issued in such
requested currency. If the Administrative Agent and all the Lenders consent to
making LIBOR Rate Loans in such requested currency, the Administrative Agent
shall so notify the Company and such currency shall thereupon be deemed for all
purposes to be an Offshore Currency hereunder for purposes of any Borrowings of
LIBOR Rate Loans; and if the Administrative Agent and the L/C Issuer consent to
the issuance of Letters of Credit in

27

such requested currency, the Administrative Agent shall so notify the
Company and such currency shall thereupon be deemed for all purposes to be an
Offshore Currency hereunder for purposes of any Letter of Credit issuances. 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 Company.

          1.10
Change of Currency. (a) Each obligation of the
Borrowers 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 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.

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

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

28

          2.02 Procedures for Borrowing.

          (a) Each
Borrowing shall be made upon the irrevocable written notice of the applicable
Borrower delivered to the Administrative Agent in the form of a Borrowing
Notice (which notice must be received by the Administrative Agent prior to (i)
10:30 a.m. four Business Days prior to the requested date of any Borrowing of
Offshore Currency Loans, (ii) 11:00 a.m. three Business Days prior to the
requested date of any Borrowing of LIBOR Rate Loans denominated in Dollars and
(iii) 10:30 a.m. on the requested date of any Borrowing of Base Rate Loans), in
any such case, specifying:

	
  

 	
  

 
	
  

 	
           (i) the
 amount of the Borrowing, which shall be in an aggregate amount not less than
 the Minimum Tranche;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (iii) the
 Type of Loans comprising the Borrowing;

 
	
  

 	
  

 
	
  

 	
           (iv) the
 duration of the Interest Period applicable to any LIBOR Rate Loans included
 in such notice; if the Borrowing Notice fails to specify the duration of the
 Interest Period for any Borrowing comprised of LIBOR Rate Loans, such
 Interest Period shall be one month; and

 
	
  

 	
  

 
	
  

 	
           (v) in
 the case of a Borrowing comprised of Offshore Currency Loans, the Applicable
 Currency.

 

          (b)
Following receipt of a Borrowing Notice, the Administrative Agent will promptly
notify each Lender of the amount of such Lender’s Pro Rata Share of the
Borrowing. In the case of a Borrowing comprised of Offshore Currency Loans,
such notice will provide the approximate amount of each Lender’s Pro Rata Share
of the Borrowing, and the Administrative Agent will, upon the determination of
the Dollar Equivalent amount of the Borrowing as specified in the Borrowing
Notice, promptly notify each Lender of the exact Dollar Equivalent amount of
such Lender’s Pro Rata Share of the Borrowing. The Dollar Equivalent amount of
any Borrowing in an Offshore Currency will be determined by the Administrative
Agent for such Borrowing on the Revaluation Date therefor in accordance with Section
2.04(a).

          (c) Each
Lender will make the amount of its Pro Rata Share of each Borrowing available
to the Administrative Agent for the account of the applicable Borrower at the
Administrative Agent’s Office on the date of Borrowing requested by such
Borrower in Same Day Funds and in the requested currency (i) in the case of a
Borrowing comprised of Loans in Dollars, by 12:00 noon and (ii) in the case of
a Borrowing comprised of Offshore Currency Loans, by such time as the
Administrative Agent may specify. The proceeds of all such Loans will then be
made available to the applicable Borrower by the Administrative Agent at such
office either by (i) crediting the account of the applicable Borrower on the books
of Wells Fargo with the aggregate of the amounts made available to the
Administrative Agent by the Lenders and in like funds as received by the
Administrative Agent or (ii) wire transfer of funds, in each case in accordance
with instructions received by (and reasonably acceptable to) the Administrative
Agent by the applicable Borrower.

29

          (d) Except
as otherwise provided herein, a LIBOR Rate Loan may be continued or converted
only on the last day of an Interest Period for such LIBOR Rate Loan. Unless the
Required Lenders otherwise consent, during the existence of a Default, no
Borrower may elect to have (i) a Loan in Dollars converted into or continued as
a LIBOR Rate Loan or (ii) an Offshore Currency Loan continued for an Interest
Period exceeding one month.

          (e) The
Administrative Agent shall promptly notify the Borrowers and the Lenders of the
interest rate applicable to any Interest Period for LIBOR Rate Loans upon
determination of such interest rate. Each determination of an applicable LIBOR
Rate by the Administrative Agent shall be conclusive in the absence of manifest
error. At any time that Base Rate Loans are outstanding, the Administrative
Agent shall notify the Borrowers and the Lenders of any change in the Prime
Rate promptly following the public announcement of such change.

          (f) After
giving effect to all Borrowings, all conversions of Loans from one Type to the
other and all continuations of Loans as the same Type, there shall not be more
than 12 Interest Periods in effect.

          2.03 Conversion and Continuation Elections
for Borrowings.

          (a) Each
Borrower may, upon irrevocable written notice to the Administrative Agent in
accordance with Section 2.03(b):

	
  

 	
  

 
	
  

 	
           (i)
 elect, as of any Business Day, in the case of Base Rate Loans, or as of the
 last day of the applicable Interest Period, in the case of any LIBOR Rate
 Loans denominated in Dollars, to convert any Loans borrowed by such Borrower
 (or any part thereof in an amount not less than the Minimum Tranche) into
 Loans in Dollars of the other Type; or

 
	
  

 	
  

 
	
  

 	
           (ii)
 elect, as of the last day of the applicable Interest Period, to continue any
 Loans borrowed by such Borrower having Interest Periods expiring on such day
 (or any part thereof in an amount not less than the Minimum Tranche);

 

          provided
that if at any time the aggregate Dollar Equivalent amount of Offshore Currency
Loans in respect of any Borrowing is reduced, by payment, prepayment or
conversion of part thereof to be less than the Minimum Tranche, such Offshore
Currency Loans shall automatically be redenominated into Base Rate Loans in
Dollars, and on and after such date the right of the applicable Borrower to
continue such Loans as, and convert such Loans into, Offshore Currency Loans shall
terminate.

          (b) The
applicable Borrower shall deliver a Notice of Conversion/Continuation to be
received by the Administrative Agent not later than (i) 11:00 a.m. at least
three Business Days in advance of the Conversion/Continuation Date, if the
Loans are to be converted into or continued as LIBOR Rate Loans denominated in
Dollars, (ii) 10:30 a.m. at least four Business Days in advance of the
continuation date, if the Loans are to be continued as Offshore Currency Loans
and (iii) 10:30 a.m. on the Conversion/Continuation Date, if the Loans are to
be converted into Base Rate Loans, specifying:

30

	
  

 	
  

 
	
  

 	
           (A)
 the proposed Conversion/Continuation Date;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (D)
 other than in the case of conversions into Base Rate Loans, the duration of
 the requested Interest Period.

 

          (c) If upon
the expiration of any Interest Period applicable to LIBOR Rate Loans in
Dollars, the applicable Borrower has failed to timely select a new Interest
Period to be applicable to such LIBOR Rate Loans or if any Default then exists,
unless, in either case, such Borrower has elected to and does repay such Loans
on or prior to the expiration date of such Interest Period, such Borrower shall
be deemed to have elected to convert such LIBOR Rate Loans into Base Rate Loans
effective as of the expiration date of such Interest Period. If the applicable
Borrower has failed to select a new Interest Period to be applicable to
Offshore Currency Loans prior to the fourth Business Day in advance of the
expiration date of the current Interest Period applicable thereto as provided
in Section 2.03(b), or if a Default shall then exist, such Borrower
shall be deemed to have elected to continue such Offshore Currency Loans on the
basis of a one month Interest Period.

          (d) The
Administrative Agent will promptly notify each Lender of its receipt of a
Notice of Conversion/Continuation or, if no timely notice is provided by the
applicable Borrower, the Administrative Agent will promptly notify each Lender
of the details of any automatic conversion or continuation. All conversions and
continuations shall be made ratably according to the respective outstanding
principal amounts of the Loans with respect to which the notice was given held
by each Lender.

          2.04 Utilization of Commitments in Offshore
Currencies. Notwithstanding anything herein to the contrary, during
the existence of an Event of Default under Section 8.01(a), (f)
or (g), upon the request of the Required Lenders, all or any part of any
outstanding Offshore Currency Loans shall be redenominated and converted into
Base Rate Loans in Dollars with effect from the last day of the Interest Period
with respect to any such Offshore Currency Loans. The Administrative Agent will
promptly notify the applicable Borrower of any such redenomination and
conversion request.

          2.05 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 other Lenders set forth in
 this Section 2.05, (1) from time to time on any Business Day during
 the Availability Period, to issue Letters of Credit denominated in Dollars or
 one or more Offshore Currencies for the accounts of the Borrowers, and to
 amend or extend Letters of
 Credit previously issued by it, in accordance with clause (b) below,
 and (2) to honor drafts under the Letters of Credit; and 

 

31

	
  

 	
  

 	
  

 
	
  

 	
 (B) the Lenders severally agree to participate in Letters of Credit
 issued for the accounts of the Borrowers; provided that the L/C Issuer
 shall not be obligated to make any L/C Credit Extension with respect to any
 Letter of Credit, and no Lender shall be obligated to participate in any
 Letter of Credit if as of the date of such L/C Credit Extension, (x) the
 Total Outstandings would exceed the Aggregate Commitments, (y) the aggregate
 Outstanding Amount of the Loans of any Lender, plus such Lender’s Pro
 Rata Share of the Outstanding Amount of all L/C Obligations would exceed the
 amount of such Lender’s Commitment or (z) the Outstanding Amount of the L/C
 Obligations would exceed the Letter of Credit Sublimit. Within the foregoing
 limits, and subject to the terms and conditions hereof, the ability of the
 Borrowers to obtain Letters of Credit shall be fully revolving and,
 accordingly, the Borrowers 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 be under no obligation to issue (and, in the case of clauses
 (B) and (C) will not 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 applicable 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 Effective Date, or shall impose upon the L/C Issuer any
 unreimbursed loss, cost or expense which was not applicable on the Effective
 Date and which the L/C Issuer in good faith deems material to it;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B) subject to Section 2.05(b)(iii),
 the expiry date of such requested Letter of Credit would occur more than
 twelve months after the date of issuance or last extension, unless the Required Lenders have approved
 such expiry date;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C) the
 expiry date of such requested Letter of Credit would occur more than one year
 after the Maturity Date, unless all Lenders have approved such expiry date;

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (E)
 unless the L/C Issuer otherwise agrees, such Letter of Credit is to be
 denominated in a currency other than an Applicable Currency; or

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (F) any
 Lender is at such time a Defaulting Lender hereunder, unless the L/C Issuer
 has entered into satisfactory arrangements with the Company or 

 

32

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 such Lender such that the L/C Issuer will have no Fronting Exposure
 with respect to such Lender.

 

	
  

 	
  

 
	
  

 	
           (iii) 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.

 
	
  

 	
  

 
	
  

 	
           (iv) 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 IX 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 IX 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 any 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 such Borrower.
 Such Letter of Credit Application must be received by the L/C Issuer and the
 Administrative Agent (A) not later than 11:00 a.m. at least two Business Days
 prior to the proposed issuance date or date of amendment, as the case may be,
 of any Letter of Credit denominated in Dollars, and (B) not later than 11:00
 a.m. at least seven Business Days prior to the proposed issuance date or date
 of amendment, as the case may be, of any Letter of Credit denominated in an
 Offshore Currency; or in each case such later date and time as the
 Administrative Agent and the L/C Issuer may agree in a particular instance in
 their sole discretion. 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 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 Applicable Currency; (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
 satisfactory to the L/C Issuer (1) the Letter of Credit to be amended; (2)
 the proposed date of amendment thereof (which shall be a Business Day); (3)
 the nature of the proposed amendment; and (4) such other matters as the L/C
 Issuer may require. Additionally, the Company 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.

 

33

	
  

 	
  

 
	
  

 	
           (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 applicable Borrower and, if not, the L/C Issuer will
 provide the Administrative Agent with a copy thereof. 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 Article IV shall not then be satisfied, then,
 subject to the terms and conditions hereof, the L/C Issuer shall, on the
 requested date, issue a Letter of Credit for the account of the applicable
 Borrower or enter into the applicable amendment, as the case may be, in each
 case in accordance with the 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 (but subject to Section 2.17), purchase from the L/C Issuer a risk
 participation in such Letter of Credit in an amount equal to the product of
 such Lender’s Pro Rata Share times the amount of such Letter of
 Credit.

 
	
  

 	
  

 
	
  

 	
           (iii) If
 any Borrower so requests in any applicable Letter of Credit Application, the
 L/C Issuer may, in its sole and absolute 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, no Borrower shall 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 one year following the Maturity; provided 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
 2.05(a) or otherwise), or (B) it has received notice (which may be by
 telephone or in writing) on or before the day that is five Business Days
 before the Non-Extension Notice Date (1) from the Administrative Agent that
 the Required Lenders have elected not to permit such extension or (2) from
 the Administrative Agent, any Lender or any Borrower that one or more of the
 applicable conditions specified in Section 4.02 is not then satisfied,
 and in each such case directing the 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 L/C Issuer will also deliver to applicable Borrower
 and the Administrative Agent a true and complete copy of such Letter of
 Credit or amendment.

 

34

          (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
 applicable Borrower and the Administrative Agent thereof. In the case of a
 Letter of Credit denominated in an Offshore Currency, the applicable Borrower
 shall reimburse the L/C Issuer in such Offshore Currency, unless (A) the L/C
 Issuer (at its option) shall have specified in such notice that it will
 require reimbursement in Dollars, or (B) in the absence of any such
 requirement for reimbursement in Dollars, the applicable Borrower shall have
 notified the L/C Issuer promptly following receipt of the notice of drawing
 that the applicable Borrower will reimburse the L/C Issuer in Dollars. In the
 case of any such reimbursement in Dollars of a drawing under a Letter of
 Credit denominated in an Offshore Currency, the L/C Issuer shall notify the
 applicable Borrower of the Dollar Equivalent of the amount of the drawing
 promptly following the determination thereof. Not later than 11:00 a.m. on
 the date of any payment by the L/C Issuer under a Letter of Credit to be
 reimbursed in Dollars, or the Applicable Time on the date of any payment by
 the L/C Issuer under a Letter of Credit to be reimbursed in an Offshore
 Currency (each such date, an “Honor Date”), the applicable Borrower
 shall reimburse the L/C Issuer through the Administrative Agent in an amount
 equal to the amount of such drawing and in the Applicable Currency. If the
 applicable Borrower fails to so reimburse the L/C Issuer by such time, the
 Administrative Agent shall promptly notify each Lender of the Honor Date, the
 amount of the unreimbursed drawing (expressed in Dollars in the amount of the
 Dollar Equivalent thereof in the case of a Letter of Credit denominated in an
 Offshore Currency) (the “Unreimbursed Amount”), and the amount of such
 Lender’s Pro Rata Share thereof. In such event, the applicable Borrower shall
 be deemed to have requested a Borrowing of Base Rate Loans to be disbursed on
 the Honor Date in an amount equal to the Unreimbursed Amount, without regard
 to the minimum and multiples specified in Section 2.02 for the
 principal amount of Base Rate Loans, but subject to the amount of the
 unutilized portion of the Aggregate Commitments and the conditions set forth
 in Section 4.02 (other than the delivery of a Borrowing Notice). Any
 notice given by the L/C Issuer or the Administrative Agent pursuant to this Section
 2.05(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 2.05(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 for Dollar-denominated payments
 in an amount equal to its Pro Rata Share of the Unreimbursed Amount not later
 than 1:00 p.m. on the Business Day specified in such notice by the
 Administrative Agent, whereupon, subject to the provisions of Section
 2.05(c)(iii), each Lender that so makes funds available shall be deemed
 to have made a Base Rate Loan to the applicable Borrower in such amount. The
 Administrative Agent shall remit the funds so received to the L/C Issuer in
 Dollars.

 
	
  

 	
  

 
	
  

 	
           (iii) With respect to any Unreimbursed Amount that is not fully
 refinanced by a Borrowing of Base Rate Loans because the conditions set forth
 in Section 4.02 (other than the delivery of a Borrowing Notice, which
 condition need not be satisfied) cannot be 

 

35

	
  

 	
  

 
	
  

 	
 satisfied or for any other reason, the applicable Borrower shall be
 deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of
 the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall
 be due and payable on demand (together with interest) and shall bear interest
 at the Default Rate. In such event, each Lender’s payment to the
 Administrative Agent for the account of the L/C Issuer pursuant to Section
 2.05(c)(ii) shall be deemed payment in respect of its participation in
 such L/C Borrowing and shall constitute an L/C Advance from such Lender in
 satisfaction of its participation obligation under this Section 2.05.

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (v) Each
 Lender’s obligation to make Loans or L/C Advances to reimburse the L/C Issuer
 for amounts drawn under Letters of Credit, as contemplated by 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 L/C Issuer, any
 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; provided that each Lender’s
 obligation to make Loans pursuant to this Section 2.05(c) is subject
 to the conditions set forth in Section 4.02 (other than delivery by a
 Borrower of a Borrowing Notice). No such making of an L/C Advance shall
 relieve or otherwise impair the obligation of any 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 2.05(c) by the
 time specified in Section 2.05(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 2.05(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
 any Borrower or otherwise, including proceeds of Cash Collateral applied
 thereto by the Administrative Agent), the Administrative Agent 

 

36

	
  

 	
  

 
	
  

 	
 will distribute to such Lender its Pro Rata Share 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
 Dollars and in the same funds as those received by the Administrative Agent.

 
	
  

 	
  

 
	
  

 	
           (ii) If
 any payment received by the Administrative Agent for the account of the L/C
 Issuer pursuant to Section 2.05(c)(i) is required to be returned under
 any of the circumstances described in Section 11.06 (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 Pro Rata Share thereof on demand of the Administrative Agent, 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 applicable
 Overnight 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.

 

          (e) Obligations
Absolute. Subject to Section 2.05(f), the obligation of each
Borrower to reimburse the L/C Issuer for each drawing under each Letter of
Credit issued to such Borrower and to repay each L/C Borrowing in connection
with each such Letter of Credit shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

	
  

 	
  

 
	
  

 	
           (i) any
 lack of validity or enforceability of such Letter of Credit, this Agreement,
 or any other Loan Document;

 
	
  

 	
  

 
	
  

 	
           (ii) the
 existence of any claim, counterclaim, setoff, defense or other right that
 such Borrower may have at any time against any beneficiary or any transferee
 of such Letter of Credit (or any Person for whom any such beneficiary or any
 such transferee may be acting), the L/C Issuer or any other Person, whether
 in connection with this Agreement, the transactions contemplated hereby or by
 such Letter of Credit or any agreement or instrument relating thereto, or any
 unrelated transaction;

 
	
  

 	
  

 
	
  

 	
           (iii) any
 draft, demand, certificate or other document presented under such Letter of
 Credit proving to be forged, fraudulent, invalid or insufficient in any
 respect or any statement therein being untrue or inaccurate in any respect;
 or any loss or delay in the transmission or otherwise of any document
 required in order to make a drawing under such Letter of Credit;

 
	
  

 	
  

 
	
  

 	
           (iv) any
 payment by the L/C Issuer under such Letter of Credit against presentation of
 a draft or certificate that does not strictly comply with the terms of such
 Letter of Credit; or any payment made by the L/C Issuer under such Letter of
 Credit to any Person purporting to be a trustee in bankruptcy,
 debtor-in-possession, assignee for the benefit of creditors, liquidator,
 receiver or other representative of or successor to any beneficiary or any
 transferee of such Letter of Credit, including any arising in connection with
 any proceeding under any Debtor Relief Law;

 

37

	
  

 	
  

 
	
  

 	
           (v) any
 adverse change in the relevant exchange rates or in the availability of the
 relevant Offshore Currency to any Borrower or in the relevant currency
 markets generally; or

 
	
  

 	
  

 
	
  

 	
           (vi) any
 other circumstance or happening whatsoever, whether or not similar to any of
 the foregoing, including any other circumstance that might otherwise
 constitute a defense available to, or a discharge of, any Borrower or
 guarantor of the Obligations.

 

Each Borrower shall promptly examine a copy of each Letter of Credit
requested by it and each amendment thereto that is delivered to it and, in the
event of any claim of noncompliance with such Borrower’s instructions or other
irregularity, such Borrower will immediately notify the L/C Issuer. Each
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 each 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, certificate
or document expressly required by such Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or 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 gross negligence
or willful misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document. Each 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 requested by it; provided that this assumption is not
intended to, and shall not, preclude such Borrower’s pursuing such rights and
remedies as it may have against the beneficiary or transferee at law or under
any other agreement. 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 or responsible for any of the matters
described in clauses (i) through (v) of Section 2.05(e); provided
that anything in such clauses to the contrary notwithstanding, each Borrower
may have a claim against the L/C Issuer, and the L/C Issuer may be liable to
such Borrower, to the extent, but only to the extent, of any direct, as opposed
to consequential or exemplary, damages suffered by such Borrower which such
Borrower proves were caused by the L/C Issuer’s willful misconduct or gross
negligence 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 such Letter
of Credit. In furtherance and not in limitation of the foregoing, the L/C
Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary, and the L/C Issuer shall not be responsible for
the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

          (g) Cash
Collateral. (i) (A) Upon the request of the Administrative Agent, if the
L/C Issuer has honored any full or partial drawing request under any Letter of
Credit and such

38

drawing has resulted in an L/C Borrowing, the Borrowers shall
immediately Cash Collateralize the amount of such L/C Borrowing or (B) if, as
of the Maturity Date, any L/C Obligation for any reason remains outstanding,
each Borrower shall immediately Cash Collateralize the then Outstanding Amount
of all L/C Obligations of all Letters of Credit issued for its account.

	
  

 	
  

 
	
  

 	
           (ii) Sections
 2.06 and 8.02(c) set forth certain additional requirements to
 deliver Cash Collateral hereunder. For purposes of this Section 2.05, Section
 2.06 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 in an amount not less than the
 then Outstanding Amount of L/C Obligations pursuant to documentation in form
 and substance satisfactory to the Administrative Agent and the L/C Issuer
 (which documents are hereby consented to by the Lenders). Derivatives of such
 term have corresponding meanings. Each 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, interest bearing deposit accounts at Wells Fargo.

 

          (h) Applicability
of ISP98 and UCP. (i) The rules of 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)
shall apply to each standby Letter of Credit and (ii) the rules of the Uniform
Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce (the “ICC”) at the time of issuance
(including the ICC decision published by the Commission on Banking Technique
and Practice on April 6, 1998 regarding the European single currency (euro))
shall apply to each commercial Letter of Credit.

          (i) Letter
of Credit Fees. The Borrowers shall pay to the Administrative Agent for the
account of each Lender in accordance with its Pro Rata Share a Letter of Credit
fee in Dollars for each Letter of Credit equal to the Applicable Rate times
the daily maximum Dollar Equivalent amount available to be drawn under such
Letter of Credit (whether or not such maximum Dollar Equivalent amount is then
in effect under such Letter of Credit); provided that, upon the request
of the Required Lenders while any Event of Default exists, the rate per annum
for Letter of Credit fees shall be increased by 2%. Such Letter of Credit fees
shall be computed on a quarterly basis in arrears. Such Letter of Credit fees
shall be due and payable (i) on the last Business Day of each March, June,
September and December; (ii) on the Maturity Date; (iii) if any Letters of
Credit are outstanding on the Maturity Date, on the date on which the last of
such Letters of Credit to be outstanding expires or terminates; and (iv) on the
date on which the Administrative Agent takes any action described in Section
8.02(a), (b) or (c) (or on which any of such actions occurs
automatically pursuant to the proviso to Section 8.02) and thereafter on
demand. If there is any change in the Applicable Rate during any quarter, the
daily maximum amount of 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
Borrowers shall pay directly to the L/C Issuer for its own account a fronting
fee in Dollars with respect to each Letter of Credit as set forth in the
Administrative Agent Fee Letter,

39

computed for each day such Letter of Credit is outstanding, payable (i)
on the first Business Day after the end of each March, June, September and
December; (ii) on the Maturity Date; (iii) if any Letters of Credit are
outstanding on the Maturity Date, on the date on which the last of such Letters
of Credit to be outstanding expires or terminates; and (iv) on the date on
which the Administrative Agent takes any action described in Section 8.02(a),
(b) or (c) (or on which any of such actions occurs automatically
pursuant to the proviso to Section 8.02) and thereafter on demand. In
addition, the Borrowers shall pay directly to the L/C Issuer for its own
account the customary issuance, presentation, amendment and other processing
fees, and other standard costs and charges, of the L/C Issuer relating to
letters of credit as from time to time in effect. Such customary fees and
standard costs and charges are due and payable on demand and are nonrefundable.

          (k) Conflict
with Letter of Credit Application. In the event of any conflict between the
terms hereof and the terms of any Letter of Credit Application, the terms
hereof shall control.

          2.06 Prepayments.

          (a) Each
Borrower may, upon notice to the Administrative Agent, at any time and from
time to time voluntarily prepay 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 Offshore Currency Loans, (B) three Business Days
prior to any date of prepayment of LIBOR Rate Loans denominated in Dollars and
(C) on the date of prepayment of Base Rate Loans; (ii) any prepayment of LIBOR
Rate Loans shall be in a principal Dollar Equivalent amount of $5,000,000 or a
higher integral multiple of 1,000,000 of the Applicable Currency; and (iii) any
prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a
higher integral multiple of $100,000 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 Loans to be prepaid, and
the Applicable Currency. The Administrative Agent will promptly notify each
Lender of its receipt of each such notice, and of the amount of such Lender’s
Pro Rata Share of such prepayment. If such notice is given by any Borrower,
such 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 LIBOR Rate Loan shall be accompanied by all accrued interest
thereon, together with any additional amount required pursuant to Section
3.04. Each such prepayment shall be applied to the Loans of the Lenders in
accordance with their respective Pro Rata Shares.

          (b) If for
any reason the Total Outstandings at any time exceed the Aggregate Commitments
then in effect (for any reason other than a change in currency exchange rates),
the Borrowers shall immediately prepay Loans and/or Cash Collateralize the L/C
Obligations in an aggregate amount equal to such excess; provided that
the Borrowers shall not be required to Cash Collateralize the L/C Obligations
pursuant to this Section 2.06(b) unless after the prepayment in full of
the Loans the Total Outstandings exceed the Aggregate Commitments then in
effect.

          (c) If on
any Revaluation Date the Administrative Agent shall have determined that the
Total Outstandings exceed the Aggregate Commitments by a Dollar Equivalent
amount of more than $1,000,000, due to a change in applicable rates of exchange
between Dollars and

40

Offshore Currencies, then the Administrative Agent shall give notice to
the Borrowers that a prepayment is required under this Section 2.06(c),
and the Borrowers agree thereupon to make prepayments of Loans and/or Cash
Collateralize the L/C Obligations within one Business Day of such notice such
that, after giving effect to such prepayment the Total Outstandings do not
exceed the Aggregate Commitments.

          2.07 Termination or Reduction of Commitments.
The Company 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 $10,000,000 or any higher integral multiple of
$1,000,000, (iii) the Company 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
Letter of Credit 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. Any reduction of the
Aggregate Commitments shall be applied to the Commitment of each Lender
according to its Pro Rata Share. All facility 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. The Borrowers
shall repay to the Administrative Agent, for the account of the Lenders, on the
Maturity Date the aggregate principal amount of Loans outstanding on such date.

          2.09 Interest.

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

          (b) If any
amount payable by any Borrower under any Loan Document is not paid when due
(after giving effect to any applicable grace period), 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 Law. Furthermore,
upon the request of the Required Lenders and upon notice to the Company, while
any Event of Default exists, the Borrowers shall pay interest on the principal amount
of all outstanding Obligations hereunder at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by
applicable Law. Accrued and unpaid interest on past due amounts (including
interest on past due interest) shall be due and payable upon demand.

41

          (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 clauses (i) and (j) of Section 2.05:

          (a) Facility
Fee. The Borrowers shall pay to the Administrative Agent for the account of
each Lender in accordance with its Pro Rata Share, a facility fee in Dollars
equal to the Applicable Rate times the actual daily amount of the
Aggregate Commitments (or, if the Aggregate Commitments have terminated, on the
Outstanding Amount of all Loans and L/C Obligations), regardless of usage. The
facility fee shall accrue at all times during the Availability Period (and
thereafter so long as any Loans or L/C Obligations remain outstanding),
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 Effective Date, and on the Maturity Date
(and, if applicable, thereafter on demand). The facility 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 Borrowers shall pay to the Arrangers and the Administrative
Agent for their own respective accounts fees in the amounts and at the times
specified in the Fee Letters. Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

	
  

 	
  

 
	
  

 	
           (ii) The
 Borrowers shall pay to the Lenders 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.

 

          2.11 Computation of Interest and Fees and Dollar
Equivalent Amounts; Retroactive Adjustments of Applicable Rate. (a)
All computations of interest for Base Rate Loans when the Base Rate is
determined by the Prime Rate shall be made on the basis of a year of 365 or 366
days, as the case may be, and actual days elapsed. All computations of interest
for all Offshore Currency Loans denominated in Sterling (and in each other
Offshore Currency that is deemed by the Administrative Agent to have market
practices that require calculation of interest on the basis of a 365-day year)
shall be made on the basis of a 365-day year 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). 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.

          (b) Each
determination of an interest rate or a Dollar Equivalent amount by the
Administrative Agent shall be conclusive in the absence of manifest error. The
Administrative

42

Agent will, at the request of the Company or any Lender, deliver to the
Company or such Lender, as the case may be, a statement showing the quotations
used by the Administrative Agent in determining any interest rate or Dollar
Equivalent amount.

          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, the L/C Issuer and each Lender shall be conclusive absent
manifest error of the amount of the Credit Extensions made by the Lenders to
the Borrowers 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
obligations of the Borrowers 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 made through the Administrative Agent, each Borrower
shall execute and deliver to such Lender (through the Administrative Agent) a
Note, which shall evidence such Lender’s Loans to such Borrower in addition to
such accounts or records. Each Lender may attach schedules to its Note and
endorse thereon the date, Type (if applicable), Applicable Currency, amount and
maturity of its Loans and payments with respect thereto.

          (b) In
addition to the accounts and records referred to in clause (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. 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
Borrowers 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
Offshore Currency, all payments by the Borrowers 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 Borrowers hereunder
with respect to principal and interest on Loans denominated in an Offshore
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 Offshore 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, any Borrower is prohibited by
any Law from making any required payment hereunder in an Offshore Currency,
such Borrower shall make such payment in Dollars in the Dollar Equivalent of
the Offshore Currency payment amount. The Administrative Agent will promptly
distribute to each Lender its Pro Rata Share (or other

43

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 Offshore 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 any 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 Borrowing that such Lender will not make available to the Administrative
Agent such Lender’s share of such Borrowing, the Administrative Agent may
assume that such Lender has made such share available on such date in
accordance with Section 2.02 and may, in reliance upon such assumption,
make available to the applicable Borrower a corresponding amount. In such
event, if a Lender has not in fact made its share of the applicable Borrowing
available to the Administrative Agent, then the applicable Lender agrees 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 such Borrower to but excluding the date of
payment to the Administrative Agent (the “Compensation Period”) at the
Overnight Rate. If such Lender does not pay such amount forthwith upon the
Administrative Agent’s demand therefor, the Administrative Agent may make a
demand therefor upon the applicable Borrower, and such Borrower shall pay such
amount to the Administrative Agent, together with interest thereon for the
Compensation Period at a rate per annum equal to the rate of interest
applicable to the applicable Borrowing. If such 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 Borrowing to the Administrative Agent, then
the amount so paid shall constitute such Lender’s Loan included in such
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 Borrowers; 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.

 

44

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

          (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 any
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 promptly 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 Loans,
to fund participations in Letters of Credit and to make payments pursuant to Section
11.05(b) are several and not joint. The failure of any Lender to make any
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 Loan, to
purchase its participation or to make its payment under Section 11.05(b).

          (e) Funding
Source. 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 Loans
made by it, or the participations in L/C Obligations held by it resulting in
such Lender’s receiving payment of a proportion of the aggregate amount of such
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 Loans and
subparticipations in L/C Obligations 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 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, together with an amount equal to such paying
 Lender’s ratable share (according to the proportion of (x) the amount of such
 paying Lender’s required repayment to (y) the total amount so recovered from
 the purchasing Lender) of any interest or other amount paid or payable by the
 purchasing Lender in respect of the total amount so recovered, without
 further interest thereon; and

 

45

	
  

 	
  

 
	
  

 	
           (ii) the
 provisions of this Section shall not be construed to apply to any payment
 made by a Borrower pursuant to and in accordance with the express terms of
 this Agreement providing for such non pro rata payment.

 

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

          2.15 Borrowing Subsidiaries; Company as agent for
Borrowing Subsidiaries. (a) The Company may designate any Domestic
Subsidiary or, with the written consent of the Administrative Agent and each
Lender (which in each case shall not be unreasonably withheld), any Foreign
Subsidiary, as a Borrowing Subsidiary. Upon the receipt and execution by the
Administrative Agent of a Borrowing Subsidiary Agreement in the form of Exhibit
H-1 executed by such Subsidiary and the Company, such Subsidiary shall be a
Borrowing Subsidiary and a party to this Agreement.

          (b) The
obligation of each Lender to make its first Loan to any Borrowing Subsidiary or
of the L/C Issuer to issue the first Letter of Credit for the account of such
Borrowing Subsidiary (whichever first occurs) is subject to the satisfaction of
the condition that the Administrative Agent shall have received the following:

	
  

 	
  

 
	
  

 	
           (i) all
 documents as shall reasonably demonstrate the existence of such Borrowing
 Subsidiary, the corporate power and authority of such Borrowing Subsidiary to
 enter into, and the validity with respect to such Borrowing Subsidiary of,
 this Agreement and the other Loan Documents to which it is a party and any
 other matters relevant hereto (including an opinion of counsel if required by
 Section 4.03), all in form and substance satisfactory to the
 Administrative Agent; and

 
	
  

 	
  

 
	
  

 	
           (ii) any
 governmental and third party approvals necessary or advisable in connection
 with the execution, delivery and performance of this Agreement by such
 Borrowing Subsidiary.

 

          (c) Any
Borrowing Subsidiary shall cease to be a Borrowing Subsidiary hereunder if such
Borrowing Subsidiary and the Company shall have executed and delivered to the
Administrative Agent a Borrowing Subsidiary Termination in the form of Exhibit
H-2; provided that at such time no Loans made to, or Letters of
Credit issued for the account of, such Borrowing Subsidiary are then
outstanding and that at such time such Borrowing Subsidiary has performed in
full all other Obligations to be performed by it.

          (d) Each
Borrowing Subsidiary hereby irrevocably appoints and authorizes the Company to
take such action and deliver and receive notices hereunder as agent on its
behalf and to exercise such powers under this Agreement as delegated to it by
the terms hereof, together with all such powers as are reasonably incidental
thereto. In furtherance of and not in limitation of the foregoing, for
administrative convenience of the parties hereto, the Administrative Agent and
the Lenders shall send all notices and communications to be sent to any
Borrowing

46

Subsidiary solely to the Company and may rely solely upon the Company
to receive all such notices and other communications for and on behalf of each
Borrowing Subsidiary. No Person other than the Company (and its authorized
officers and employees) may act as agent for any Borrowing Subsidiary hereunder
without the written consent of the Administrative Agent.

          (e) The
Obligations of any Borrowing Subsidiary shall be guaranteed by the Company
pursuant to Article X.

          2.16
Incremental Loans and Commitments.

          (a) At any
time prior to the Maturity Date, the Company may by written notice to the
Administrative Agent elect to request the establishment of:

	
  

 	
  

 
	
  

 	
           (i) one
 or more incremental term loan commitments (any such incremental term loan
 commitment, an “Incremental Term Loan Commitment”) to make an
 incremental term loan to the Company (any such incremental term loan, an “Incremental
 Term Loan”); or

 
	
  

 	
  

 
	
  

 	
           (ii) one
 or more increases in the Commitments, an “Incremental Revolving Credit
 Commitment” and, together with the Incremental Term Loan Commitments, the
 “Incremental Loan Commitments”) to make incremental revolving credit
 loans (any such increase, an “Incremental Revolving Credit Increase”
 and, together with the Incremental Term Loan, the “Incremental Loans”);

 

provided that (x) the total aggregate amount
for all such Incremental Loan Commitments shall not (as of any date of
incurrence thereof) exceed $150,000,000 and (y) the total aggregate amount for
each Incremental Loan Commitment (and the Incremental Loans made thereunder)
shall not be less than a minimum principal amount of $20,000,000 (or such
lesser amount to which the Administrative Agent may agree). Each such notice
shall specify the date (each, an “Increased Amount Date”) on which the
Company proposes that any Incremental Loan Commitment shall be effective, which
shall be a date not less than ten Business Days after the date on which such
notice is delivered to Administrative Agent. The Company may invite any Lender,
any Affiliate of any Lender and/or any Approved Fund, and/or any other Person
reasonably satisfactory to the Administrative Agent (and, in the case of an
Incremental Revolving Credit Commitment, the L/C Issuer), to provide an
Incremental Loan Commitment (any such Person, an “Incremental Lender”).
Any Lender or any Incremental Lender offered or approached to provide all or a
portion of any Incremental Loan Commitment may elect or decline, in its sole
discretion, to provide such Incremental Loan Commitment. Any Incremental Loan
Commitment shall become effective as of such Increased Amount Date; provided
that:

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A) the
 Administrative Agent shall have received a certificate dated the Increased
 Amount Date and signed by a Responsible Officer of the Company certifying
 that the conditions specified in Sections 4.02(a) and (b) are
 satisfied relative to such Credit Extension or Incremental Loan Commitment;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B) the
 proceeds of any Incremental Loans shall be used in compliance with Section
 6.11;

 

47

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C) each
 Incremental Loan Commitment (and the Incremental Loans made thereunder) shall
 constitute Obligations of the applicable Borrower(s) and shall share in the
 guarantees and security, if any, supporting the other extensions of credit
 hereunder on a pari passu basis;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (D) (1)
 in the case of each Incremental Term Loan (the terms of which shall be set
 forth the relevant Lender Joinder Agreement):

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (x) such
 Incremental Term Loan will mature and amortize in a manner reasonably
 acceptable to the Administrative Agent, the Incremental Lenders making such
 Incremental Term Loan and the Company, but will not in any event have a
 maturity date earlier than the Maturity Date; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (y) except
 as provided in (x) above and except for mechanical and non-material changes
 deemed appropriate by the Administrative Agent to reflect the term rather
 than revolving nature of the Incremental Term Loan, all terms (including
 pricing) and conditions applicable to any Incremental Term Loan shall be the
 same as the terms and conditions applicable to the Loans; 

 
	
  

 	
  

 	
  

 
	
  

 	
                     (2)
 in the case of each Incremental Revolving Credit Increase (the terms of which
 shall be set forth in the relevant Lender Joinder Agreement):

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (x) all
 terms (including pricing) and conditions applicable to any Incremental
 Revolving Credit Increase shall be the same as the terms and conditions
 applicable to the Loans; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (y) the
 outstanding Loans and Pro Rata Shares of L/C Obligations will be reallocated
 by the Administrative Agent on the applicable Increased Amount Date among the
 Lenders (including the Incremental Lenders providing such Incremental
 Revolving Credit Increase) in accordance with their revised Pro Rata Shares
 (and the Lenders (including the Incremental Lenders providing such
 Incremental Revolving Credit Increase) agree to make all payments and
 adjustments necessary to effect such reallocation and the Company shall pay
 any and all costs required pursuant to Section 3.05 in connection with
 such reallocation as if such reallocation were a repayment); and

 
	
  

 	
  

 	
  

 
	
  

 	
           (E) such
 Incremental Loan Commitments shall be effected pursuant to one or more Lender
 Joinder Agreements executed and delivered by the Company, the Administrative
 Agent and the applicable Incremental Lenders (which Lender Joinder Agreement
 may, without the consent of any other Lenders, and notwithstanding any
 provision of Section 11.01 to the contrary, effect such amendments to
 this Agreement and the other Loan Documents as may be necessary or
 appropriate, in the opinion of the Administrative Agent, to effect the 

 

48

	
  

 	
  

 
	
  

 	
 provisions of this Section 2.16), which amendments may include,
 without limitation, appropriate changes to the definitions of “Loans”,
 “Commitments” and “Required Lenders”).

 

          2.17
Defaulting Lenders 

          (a) Defaulting
Lender Adjustments. Notwithstanding anything to the contrary contained in
this Agreement, if any Lender becomes a Defaulting Lender, then, until such
time as such Lender is no longer a Defaulting Lender, to the extent permitted
by applicable Law:

	
  

 	
  

 
	
  

 	
           (i) Waivers
 and Amendments. Such Defaulting Lender’s right to approve or disapprove
 any amendment, waiver or consent with respect to this Agreement shall be
 restricted as set forth in the definition of Required Lenders and the last
 sentence of Section 11.01.

 
	
  

 	
  

 
	
  

 	
           (ii) Defaulting
 Lender Waterfall. Any payment of principal, interest, fees or other
 amounts received by the Administrative Agent for the account of such
 Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article
 VIII or otherwise) or received by the Administrative Agent from a
 Defaulting Lender pursuant to Section 11.09 shall be applied at
 such time or times as may be determined by the Administrative Agent as
 follows: first,
 to the payment of any amounts owing by such Defaulting Lender to the
 Administrative Agent hereunder; second, to the payment on a pro rata
 basis of any amounts owing by such Defaulting Lender to the L/C Issuer
 hereunder; third, to Cash Collateralize the Fronting Exposure of the
 L/C Issuer with respect to such Defaulting Lender in accordance with Section 2.05;
 fourth,
 as the Company may request (so long as no Default or Event of Default
 exists), to the funding of any Loan or funded participation in respect of
 which such Defaulting Lender has failed to fund its portion thereof as
 required by this Agreement, as determined by the Administrative Agent; fifth,
 if so determined by the Administrative Agent and the Company, to be held in a
 deposit account and released pro rata in order to (A)
 satisfy such Defaulting Lender’s potential future funding obligations with
 respect to Loans and funded participations under this Agreement and (B) Cash
 Collateralize the L/C Issuer’s future Fronting Exposure with respect to such
 Defaulting Lender with respect to future Letters of Credit issued under this
 Agreement, in accordance with Section 2.05; sixth, to the payment of
 any amounts owing to the Lenders or the L/C Issuer as a result of any
 judgment of a court of competent jurisdiction obtained by any Lender or the
 L/C Issuer against such Defaulting Lender as a result of such Defaulting
 Lender’s breach of its obligations under this Agreement; seventh, so long as no
 Default or Event of Default exists, to the payment of any amounts owing to a
 Borrower as a result of any judgment of a court of competent jurisdiction
 obtained by such Borrower against such Defaulting Lender as a result of such
 Defaulting Lender’s breach of its obligations under this Agreement; and eighth,
 to such Defaulting Lender or as otherwise directed by a court of competent
 jurisdiction; provided that if (1) such payment is a payment of the
 principal amount of any Loans or funded participations in Letters of Credit
 in respect of which such Defaulting Lender has not fully funded its
 appropriate share, and (2) such Loans were made or the related Letters of
 Credit were issued at a time when the conditions set forth in Section 4.02
 were satisfied or waived, such payment shall be applied solely to 

 

49

	
  

 	
  

 	
  

 
	
  

 	
 pay the Loans of, and funded participations in Letters of Credit owed
 to, all Non-Defaulting Lenders on a pro rata basis prior to
 being applied to the payment of any Loans of, or funded participations in
 Letters of Credit owed to, such Defaulting Lender until such time as all
 Loans and funded and unfunded participations in L/C Obligations are held by
 the Lenders pro rata in accordance with the Commitments without
 giving effect to Section 2.17(a)(iv). Any payments, prepayments or
 other amounts paid or payable to a Defaulting Lender that are applied (or
 held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral
 pursuant to this Section 2.17(a)(ii) shall be deemed paid to and
 redirected by such Defaulting Lender, and each Lender irrevocably consents
 hereto.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii) Certain
 Fees.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A) Each
 Defaulting Lender shall be entitled to receive a Facility Fee for any period
 during which such Lender is a Defaulting Lender only to extent allocable to
 the sum of (1) the outstanding principal amount of the Loans funded by it,
 and (2) its Pro Rata Share of the stated amount of Letters of Credit for
 which it has provided Cash Collateral pursuant to Section 2.05.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B) Each
 Defaulting Lender shall be entitled to receive letter of credit commissions
 pursuant to Section 2.10 for any period during which that Lender is a
 Defaulting Lender only to the extent allocable to its Pro Rata Share of the
 stated amount of Letters of Credit for which it has provided Cash Collateral
 pursuant to Section 2.05.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C) With
 respect to any Facility Fee or letter of credit commission not required to be
 paid to any Defaulting Lender pursuant to clause (A) or (B) above, the
 Company shall (1) pay to each Non-Defaulting Lender that portion of any such
 fee otherwise payable to such Defaulting Lender with respect to such
 Defaulting Lender’s participation in L/C Obligations that has been
 reallocated to such Non-Defaulting Lender pursuant to clause (iv) below,
 (2) pay to each L/C Issuer the amount of any such fee otherwise payable to
 such Defaulting Lender to the extent allocable to such L/C Issuer’s Fronting
 Exposure to such Defaulting Lender, and (3) not be required to pay the
 remaining amount of any such fee.

 
	
  

 	
  

 	
  

 
	
  

 	
           (iv) Reallocation
 of Participations to Reduce Fronting Exposure. All or any part of such
 Defaulting Lender’s participation in L/C Obligations shall be reallocated
 among the Non-Defaulting Lenders in accordance with their respective Pro Rata
 Shares (calculated without regard to such Defaulting Lender’s Commitment) but
 only to the extent that (x) the conditions set forth in Section 4.02
 are satisfied at the time of such reallocation (and, upon notice to the
 Company of such reallocation, unless the Company shall have otherwise
 notified the Administrative Agent at such time, the Company shall be deemed
 to have represented and warranted that such conditions are satisfied at such
 time), and (y) such reallocation does not cause the aggregate credit exposure
 of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s
 Commitment. No reallocation hereunder shall constitute a waiver or release of
 any claim of any party hereunder against a Defaulting Lender arising from
 that Lender having become a 

 

50

	
  

 	
  

 
	
  

 	
 Defaulting Lender, including any claim of a Non-Defaulting Lender as
 a result of such Non-Defaulting Lender’s increased exposure following such
 reallocation.

 
	
  

 	
  

 
	
  

 	
           (v) Cash
 Collateral. If the reallocation described in clause (iv) above cannot, or
 can only partially, be effected, the Company shall, without prejudice to any
 right or remedy available to it hereunder or under law, Cash Collateralize
 the L/C Issuer’s Fronting Exposure in accordance with the procedures set
 forth in Section 2.05.

 
	
  

 	
  

 
	
           (b) Defaulting
 Lender Cure. If the Company, the Administrative Agent and the L/C Issuer
 agree in writing that a Lender is no longer a Defaulting Lender, the
 Administrative Agent will so notify the parties hereto, whereupon as of the
 effective date specified in such notice and subject to any conditions set
 forth therein (which may include arrangements with respect to any Cash
 Collateral), such Lender will, to the extent applicable, purchase at par that
 portion of outstanding Loans of the other Lenders or take such other actions
 as the Administrative Agent may determine to be necessary to cause the Loans
 and funded and unfunded participations in Letters of Credit to be held pro
 rata by the Lenders in accordance with the Commitments under the
 applicable Facility (without giving effect to Section 2.17(a)(iv),
 whereupon such Lender will cease to be a Defaulting Lender; provided
 that no adjustments will be made retroactively with respect to fees accrued
 or payments made by or on behalf of the Company while that Lender was a
 Defaulting Lender; and provided, further, that except to the
 extent otherwise expressly agreed by the affected parties, no change
 hereunder from Defaulting Lender to Lender will constitute a waiver or
 release of any claim of any party hereunder arising from that Lender’s having
 been a Defaulting Lender.

 
	
  

 
	
           (c) New
 Letters of Credit. So long as any Lender is a Defaulting Lender, no L/C
 Issuer shall be required to issue, extend, renew or increase any Letter of
 Credit unless it is satisfied that it will have no Fronting Exposure after
 giving effect thereto.

 

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

          3.01
Taxes.

          (a) L/C
Issuer. For purposes of this Section 3.01, the term “Lender”
includes any L/C Issuer.

          (b) Payments
Free of Taxes. Any and all payments by or on account of any obligation of
any Loan Party under any Loan Document shall be made without deduction or
withholding for any Taxes, except as required by applicable Law. If any
applicable Law (as determined in the good faith discretion of an applicable
Withholding Agent) requires the deduction or withholding of any Tax from any
such payment by a Withholding Agent, then the applicable Withholding Agent
shall be entitled to make such deduction or withholding and shall timely pay
the full amount deducted or withheld to the relevant Governmental Authority in
accordance with applicable Law and, if such Tax is an Indemnified Tax, then the
sum payable by the applicable Loan Party shall be increased as necessary so
that after such deduction or withholding has been made (including such
deductions and withholdings applicable to additional 

51

sums payable under this Section) the applicable Recipient receives an
amount equal to the sum it would have received had no such deduction or
withholding been made.

          (c) Payment
of Other Taxes by the Loan Parties. The Loan Parties shall timely pay to the
relevant Governmental Authority in accordance with applicable Law, or at the
option of the Administrative Agent timely reimburse it for the payment of, any
Other Taxes.

          (d) Indemnification
by the Loan Parties. The Loan Parties shall jointly and severally indemnify each Recipient,
within 10 days after demand therefor, for the full amount of any Indemnified
Taxes (including Indemnified Taxes imposed or asserted on or attributable to
amounts payable under this Section) payable or paid by such Recipient or
required to be withheld or deducted from a payment to such Recipient and any
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of such payment
or liability delivered to the Company by a Lender (with a copy to the
Administrative Agent), or by the Administrative Agent on its own behalf or on
behalf of a Lender, shall be conclusive absent manifest error.

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

          (f) Status
of Lenders. (i)
Any Lender that is entitled to an exemption from or reduction of withholding
Tax with respect to payments made under any Loan Document shall deliver to the
Company and the Administrative Agent, at the time or times reasonably requested
by the Company or the Administrative Agent, such properly completed and
executed documentation reasonably requested by the Company or the
Administrative Agent as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender, if
reasonably requested by the Company or the Administrative Agent, shall deliver
such other documentation prescribed by applicable Law or reasonably requested
by the Company or the Administrative Agent as will enable the Company or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements. Notwithstanding
anything to the contrary in the preceding two sentences, the completion,
execution and submission of such documentation (other than such documentation
set forth in Sections 3.01(f)(ii)(A), (ii)(B) and (ii)(D) below) shall
not be required if in the Lender’s reasonable judgment such completion,
execution or submission would subject such Lender to any material unreimbursed
cost or expense or would materially prejudice the legal or commercial position
of such Lender.

	
  

 	
  

 	
  

 
	
  

 	
           (ii)
 Without limiting the generality of the foregoing, in the event that the
 applicable Borrower is a U.S. Person, 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A) any
 Lender that is a U.S. Person shall deliver to such Borrower and the
 Administrative Agent on or prior to the date on which such Lender becomes a
 Lender under this Agreement (and from time to time thereafter upon the 

 

52

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 reasonable request of such Borrower or the Administrative Agent),
 executed originals of IRS Form W-9 certifying that such Lender is exempt from
 U.S. federal backup withholding tax;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (B) any
 Foreign Lender shall, to the extent it is legally entitled to do so, deliver
 to such 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 reasonable request of such Borrower or the Administrative
 Agent), whichever of the following is applicable:

 
	
  

 	
  

 
	
  

 	
  

 	
 (1)

 	
 in the case of a Foreign Lender claiming the benefits of an income
 tax treaty to which the United States is a party (x) with respect to payments
 of interest under any Loan Document, executed originals of IRS Form W-8BEN
 establishing an exemption from, or reduction of, U.S. federal withholding Tax
 pursuant to the “interest” article of such tax treaty and (y) with respect to
 any other applicable payments under any Loan Document, IRS Form W-8BEN
 establishing an exemption from, or reduction of, U.S. federal withholding Tax
 pursuant to the “business profits” or “other income” article of such tax
 treaty;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (2)

 	
 executed originals of IRS Form W-8ECI;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (3)

 	
 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 substantially in the form of Exhibit G-1 to the effect
 that such Foreign Lender is not a “bank” within the meaning of Section
 881(c)(3)(A) of the Code, a “10 percent shareholder” of a Borrower within the
 meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign
 corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax
 Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN;
 or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (4)

 	
 to the extent a Foreign Lender is not the beneficial owner, executed
 originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form
 W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit
 G-2 or Exhibit G-3, IRS Form W-9, and/or other certification
 documents from each beneficial owner, as applicable; provided that if
 the Foreign Lender is a partnership and one or more direct or indirect
 partners of such Foreign Lender are claiming the portfolio interest exemption,
 such Foreign Lender may provide a U.S. Tax Compliance Certificate
 substantially in the form of Exhibit G-4 on behalf of each such direct
 and indirect partner;

 

53

	
  

 	
  

 
	
  

 	
           (C) any
 Foreign Lender shall, to the extent it is legally entitled to do so, deliver
 to the applicable 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 reasonable request of the Borrower or the
 Administrative Agent), executed originals of any other form prescribed by
 applicable Law as a basis for claiming exemption from or a reduction in U.S.
 federal withholding Tax, duly completed, together with such supplementary
 documentation as may be prescribed by applicable Law to permit such Borrower
 or the Administrative Agent to determine the withholding or deduction
 required to be made; and

 
	
  

 	
  

 
	
  

 	
           (D) if a
 payment made to a Lender under any Loan Document would be subject to U.S.
 federal withholding Tax imposed by FATCA if such Lender were to fail to
 comply with the applicable reporting requirements of FATCA (including those
 contained in Section 1471(b) or 1472(b) of the Code, as applicable), such
 Lender shall deliver to the Company and the Administrative Agent at the time
 or times prescribed by law and at such time or times reasonably requested by
 the Company or the Administrative Agent such documentation prescribed by
 applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the
 Code) and such additional documentation reasonably requested by the Company
 or the Administrative Agent as may be necessary for the Company and the
 Administrative Agent to comply with their obligations under FATCA and to
 determine that such Lender has complied with such Lender’s obligations under
 FATCA or to determine the amount to deduct and withhold from such payment.
 Solely for purposes of this clause (D), “FATCA” shall include any amendments
 made to FATCA after the date of this Agreement.

 

          Each
Lender agrees that if any form or certification it previously delivered expires
or becomes obsolete or inaccurate in any respect, it shall update such form or
certification or promptly notify the Borrower and the Administrative Agent in
writing of its legal inability to do so.

          (g) Treatment
of Certain Refunds. If any party determines, in its sole discretion
exercised in good faith, that it has received a refund of any Taxes as to which
it has been indemnified pursuant to this Section 3.01 (including by the
payment of additional amounts pursuant to this Section 3.01), it shall
pay to the indemnifying party an amount equal to such refund (but only to the
extent of indemnity payments made under this Section with respect to the Taxes
giving rise to such refund), net of all out-of-pocket expenses (including
Taxes) of such indemnified party and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund). Such
indemnifying party, upon the request of such indemnified party, shall repay to
such indemnified party the amount paid over pursuant to this paragraph (g)
(plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) in the event that such indemnified party is required to
repay such refund to such Governmental Authority. Notwithstanding anything to
the contrary in this paragraph (g), in no event will the indemnified party be
required to pay any amount to an indemnifying party pursuant to this paragraph
(g) the payment of which would place the

54

indemnified party in a less favorable net after-Tax position than the
indemnified party would have been in if the indemnification payments or
additional amounts giving rise to such refund had never been paid. This
paragraph shall not be construed to require any indemnified party to make
available its Tax returns (or any other information relating to its Taxes that
it deems confidential) to the indemnifying party or any other Person.

          (h) Indemnification
of the Administrative Agent. Each Lender and the L/C Issuer shall severally
indemnify the Administrative Agent within ten (10) days after demand therefor,
for (i) any
Indemnified Taxes attributable to such Lender (but only to the extent that any
Loan Party has not already indemnified the Administrative Agent for such
Indemnified Taxes and without limiting the obligation of the Loan Parties to do
so), (ii) any Taxes attributable to such Lender’s failure to comply with the
provisions of Section 11.07(e) relating to the maintenance of a
Participant Register and (iii) any Excluded Taxes attributable to such Lender,
in each case, that are payable or paid by the Administrative Agent in
connection with any Loan Document, and any reasonable expenses arising
therefrom or with respect thereto, whether or not such Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to any Lender
by the Administrative Agent shall be conclusive absent manifest error. Each
Lender hereby authorizes the Administrative Agent to set off and apply any and
all amounts at any time owing to such Lender under any Loan Document or
otherwise payable by the Administrative Agent to the Lender from any other
source against any amount due to the Administrative Agent under this paragraph
(h). The agreements in paragraph (h) shall survive the resignation
and/or replacement of the Administrative Agent. 

          (i) Survival.
Each party’s obligations under this Section 3.01 shall survive the
resignation or replacement of the Administrative Agent or any assignment of
rights by, or the replacement of, a Lender, the termination of the Commitments
and the repayment, satisfaction or discharge of all obligations under any Loan
Document.

          3.02
Changed Circumstances. 

          (a) Circumstances
Affecting LIBOR Rate Availability. In connection with any request for a
LIBOR Rate Loan or a Base Rate Loan as to which the interest rate is determined
with reference to LIBOR or a conversion to or continuation thereof, if for any
reason (i) the Administrative Agent shall determine (which determination shall
be conclusive and binding absent manifest error) that Dollar deposits are not
being offered to banks in the London interbank Eurodollar market for the
applicable amount and Interest Period of such Loan, (ii) the Administrative
Agent shall determine (which determination shall be conclusive and binding
absent manifest error) that reasonable and adequate means do not exist for the
ascertaining the LIBOR Rate for such Interest Period with respect to a proposed
LIBOR Rate Loan or any Base Rate Loan as to which the interest rate is
determined with reference to LIBOR or (iii) the Required Lenders shall
determine (which determination shall be conclusive and binding absent manifest
error) that the LIBOR Rate does not adequately and fairly reflect the cost to
such Lenders of making or maintaining such Loans during such Interest Period,
then the Administrative Agent shall promptly give notice thereof to the
Company. Thereafter, until the Administrative Agent notifies the Company that
such circumstances no longer exist, the obligation of the Lenders to make LIBOR
Rate Loans and the right of a Borrower to convert any 

55

Loan to or continue any Loan as a LIBOR Rate Loan shall be suspended,
and (i) in the case of LIBOR Rate Loans, the applicable Borrower shall either
(A) repay in full (or cause to be repaid in full) the then outstanding
principal amount of each such LIBOR Rate Loan together with accrued interest
thereon (subject to Section 5.1(d)), on the last day of the then current
Interest Period applicable to such LIBOR Rate Loan; or (B) convert the then
outstanding principal amount of each such LIBOR Rate Loan to a Base Rate Loan;
and (ii) Base Rate Loan shall be determined without reference to LIBOR.

          (b) Laws
Affecting LIBOR Rate Availability. If, after the date hereof, the
introduction of, or any change in, any applicable Law or any change in the
interpretation or administration thereof by any Governmental Authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any of the Lenders (or any of their respective Lending
Offices) with any request or directive (whether or not having the force of law)
of any such Governmental Authority, central bank or comparable agency, shall
make it unlawful or impossible for any of the Lenders (or any of their
respective Lending Offices) to honor its obligations hereunder to make or
maintain any LIBOR Rate Loan or any Base Rate Loan as to which the interest
rate is determined by reference to LIBOR, such Lender shall promptly give
notice thereof to the Administrative Agent and the Administrative Agent shall
promptly give notice to the Company and the other Lenders. Thereafter, until
the Administrative Agent notifies the Company that such circumstances no longer
exist, (i) the obligations of the Lenders to make LIBOR Rate Loans, and the
right of the Borrowers to convert any Loan to a LIBOR Rate Loan or continue any
Loan as a LIBOR Rate Loan shall be suspended and thereafter the Borrowers may
select only Base Rate Loans, (ii) all Base Rate Loans shall cease to be
determined by reference to LIBOR and (iii) if any of the Lenders may not
lawfully continue to maintain a LIBOR Rate Loan to the end of the then current
Interest Period applicable thereto, the applicable Loan shall immediately be
converted to a Base Rate Loan for the remainder of such Interest Period.

          3.03
Increased Costs. 

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (i)
 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 advances, loans or other credit extended or
 participated in by, any Lender (except any reserve requirement reflected in
 the LIBOR Rate) or the L/C Issuer;

 
	
  

 	
  

 
	
  

 	
           (ii)
 subject any Recipient to any Taxes (other than (A) Indemnified Taxes and (B)
 Taxes described in clauses (b) through (d) of the definition of Excluded
 Taxes) on its loans, loan principal, letters of credit, commitments, or other
 obligations, or its deposits, reserves, other liabilities or capital
 attributable thereto, or

 
	
  

 	
  

 
	
  

 	
           (iii)
 impose on any Lender or the L/C Issuer or the London interbank market any
 other condition, cost or expense (other than Taxes) affecting this Agreement
 or Loans made by such Lender or any Letter of Credit or participation
 therein;

 

56

and the result of any of the foregoing shall be to increase the cost to
such Lender or such other Recipient of making, converting to, continuing or
maintaining any Loan (or of maintaining its obligation to make any such Loan),
or to increase the cost to such Lender, the L/C Issuer or such other Recipient
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, the
L/C Issuer or such other Recipient hereunder (whether of principal, interest or
any other amount) then, upon written request of such Lender, the L/C Issuer or
other Recipient, the Borrower shall promptly pay to any such Lender, the L/C
Issuer or other Recipient, 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 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 or liquidity 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 Commitment 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 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 and liquidity), then from time
to time upon written request of such Lender or such L/C Issuer, the Company
shall promptly 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 as reasonably determined by such Lender or the L/C Issuer (which
determination shall be made in good faith (and not on an arbitrary or
capricious basis) and consistent with similarly situated customers of the
applicable Lender or the L/C Issuer under agreements having provisions similar
to this paragraph (b) after consideration of such factors as such Lender or the
L/C Issuer then reasonably determines to be relevant). 

          (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, as the case may be, as specified in paragraph
(a) or (b) of this Section and delivered to the Company shall be conclusive
absent manifest error. The Company shall pay such Lender or the L/C Issuer, as
the case may be, the amount shown as due on any such certificate within ten
(10) 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 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 Company shall not be required to compensate a Lender or the L/C Issuer
pursuant to this Section for any increased costs incurred or reductions
suffered more than six (6) months prior to the date that such Lender or the L/C
Issuer, as the case may be, notifies the Company 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

57

reductions is retroactive, then the six-month period referred to above
shall be extended to include the period of retroactive effect thereof).

          (e) Mitigation.
If any Lender requests compensation under Section 3.03, or requires the
Company to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, then
such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 3.01 or Section 3.03,
as the case may be, in the future and (ii) would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Company hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

          3.04
Funding Losses. Upon demand of any Lender (with a copy
to the Administrative Agent) from time to time, each 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 such Borrower (for a reason other than default by such Lender in
making a Loan) to prepay, borrow, continue or convert any LIBOR Rate Loan on
the date or in the amount notified by such Borrower; or

          (c) any
assignment of a LIBOR Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Company pursuant to Section 11.15;

including any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable
to terminate the deposits from which such funds were obtained. Each Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

          For
purposes of calculating amounts payable by the Borrowers to the Lenders under
this Section 3.04, each Lender shall be deemed to have funded each
LIBOR Rate Loan made by it at the LIBOR used in determining the LIBOR Rate for
such Loan by a matching deposit or other borrowing in the London interbank
market for a comparable amount, for a comparable period and in the same
Applicable Currency, whether or not such LIBOR Rate Loan was in fact so funded.

          3.05
Matters Applicable to all Requests for Compensation.

          (a) A
certificate of the Administrative Agent or any Lender claiming compensation
under this Article III and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive in the absence of
manifest error. In determining such amount, the Administrative Agent or such
Lender may use any reasonable averaging and attribution methods. 

58

          (b) Upon
any Lender’s making a claim for compensation under Section 3.01 or 3.03,
the Company may replace such Lender in accordance with Section 11.15.

          3.06
Survival. All of the obligations of the Borrowers
under this Article III shall survive termination of the Aggregate
Commitments and repayment of all other Obligations.

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

          4.01
Conditions of Initial Credit Extension. The obligation
of each Lender to make its initial Credit Extension hereunder is subject to
satisfaction of the following conditions precedent:

          (a) The
Administrative Agent’s receipt of the following, each of which shall be
originals or facsimiles (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the signing Loan
Party, each dated the Effective Date (or, in the case of certificates of
governmental officials, a recent date before the Effective Date) and each in
form and substance satisfactory to the Administrative Agent and its legal
counsel:

	
  

 	
  

 
	
  

 	
           (i)
 executed counterparts of this Agreement and the Guaranty, sufficient in
 number for distribution to the Administrative Agent, each Lender and each
 Borrower;

 
	
  

 	
  

 
	
  

 	
           (ii) a
 Note executed by each Borrower in favor of each Lender requesting a Note;

 
	
  

 	
  

 
	
  

 	
           (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 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 demonstrate that each Loan Party is duly organized or formed, and
 that the Company and Donaldson Capital are validly existing, in good standing
 and qualified to engage in business in its jurisdiction of organization;

 
	
  

 	
  

 
	
  

 	
           (v) a
 favorable opinion of Dorsey & Whitney, LLP, counsel to the Loan Parties,
 addressed to the Administrative Agent and each Lender, in form and substance
 satisfactory to the Administrative Agent;

 
	
  

 	
  

 
	
  

 	
           (vi) a
 certificate signed by a Responsible Officer of the Company certifying (A)
 that the conditions specified in Section 4.01(c) and Sections
 4.02(a) and have been satisfied, (B) 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 (C) a calculation of the Leverage
 Ratio as of the last day of the fiscal quarter of the Company most recently
 ended prior to the Effective Date; and

 

59

	
  

 	
  

 
	
  

 	
           (vii)
 such other assurances, certificates, documents, consents or opinions as the
 Administrative Agent, the L/C Issuer or the Required Lenders reasonably may
 require.

 

          (b) All
accrued and unpaid fees under Sections 2.05(i) and (j) and Sections
2.10(a) and (b) of the Existing Credit Agreement and any other fees
required to be paid on or before the Effective Date shall have been paid and
all Loans and other amounts outstanding under the Existing Credit Agreement,
together with interest thereon and, if applicable, amounts due under Section 3.04
shall have been (or shall substantially contemporaneously be) repaid (and the
commitments thereunder shall have been terminated) pursuant to a payoff letter
reasonably satisfactory to the Administrative Agent.

          (c) Unless
waived by the Administrative Agent, the Borrowers shall have paid all Attorney
Costs of the Administrative Agent to the extent invoiced prior to or on the
Effective Date, plus such additional amounts of Attorney Costs as shall
constitute its reasonable estimate of Attorney Costs incurred or to be incurred
by it through the closing proceedings (provided that such estimate shall
not thereafter preclude a final settling of accounts between the Borrowers and
the Administrative Agent).

          (d) All Subsidiaries (excluding Donaldson
Capital) which are guarantors of the series of notes issued by the Company
pursuant to (i) the Note Purchase Agreement dated as of June 1, 2007,
entered into by the Company and each of the purchasers listed in Schedule A
thereto and (ii) the Note Purchase Agreement dated as of November 14,
2008, entered into by the Company and each of the purchasers listed in Schedule
A thereto, shall have been (or,
substantially contemporaneously with the occurrence of the Effective Date, shall
be) released from their respective guarantees. 

          4.02
Conditions to all Credit Extensions. The obligation of
each Lender to honor any Request for Credit Extension (other than a Borrowing
Notice requesting only a conversion of Loans to the other Type or a
continuation of LIBOR Rate Loans) is subject to the following conditions
precedent:

          (a) The
representations and warranties of the Company, each Borrowing Subsidiary and
each other Loan Party contained in Article V or any other Loan Document,
or which are contained 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 clauses (a) and (b)
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.

          (b) No
Default shall exist or would result from such proposed Credit Extension.

          (c) The
Administrative Agent and, if applicable, the L/C Issuer shall have received a
Request for Credit Extension in accordance with the requirements hereof.

60

          Each
Request for Credit Extension (other than a Borrowing Notice requesting only a
conversion of Loans to the other Type or a continuation of LIBOR Rate Loans)
submitted by any Borrower shall be deemed to be a representation and warranty
that the conditions specified in Sections 4.02(a) and (b) have
been satisfied on and as of the date of the applicable Credit Extension.

          4.03
Initial Credit Extension to Each Borrowing Subsidiary.
The obligation of each Lender to make an initial Loan to, and of the L/C Issuer
to issue any Letter of Credit for the account of, each Borrowing Subsidiary
following any designation of such Borrowing Subsidiary as a Borrower hereunder
pursuant to Section 2.15 is subject to the Administrative Agent’s
receipt on or before the date of such initial Credit Extension of each of the
following, in form and substance satisfactory to the Administrative Agent and
dated such date, and in sufficient copies for each Lender:

          (a)
Certified copies of the resolutions of the board of directors (or equivalent
governing body) of such Borrowing Subsidiary (with a certified English
translation if the original thereof is not in English) approving this Agreement
and each other Loan Document to which such Borrowing Subsidiary is or will be a
party, and of all documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to this Agreement and such other
Loan Documents.

          (b) A
certificate of the Secretary or an Assistant Secretary of such Borrowing
Subsidiary certifying the names and true signatures of the officers of such
Borrowing Subsidiary authorized to sign this Agreement and each other Loan
Document to which such Borrowing Subsidiary is or will be a party and the other
documents to be delivered hereunder.

          (c) Such
documents and certifications as the Administrative Agent may reasonably require
to demonstrate that such Borrowing Subsidiary is duly organized or formed, and
that such Borrowing Subsidiary is validly existing, in good standing (or
equivalent) and qualified to engage in business in its jurisdiction of
organization.

          (d) A
certificate signed by a duly authorized officer of the Company, dated as of the
date of such initial Credit Extension, certifying that such Borrowing
Subsidiary shall have obtained all governmental and third party authorizations,
consents, approvals (including exchange control approvals) and licenses
required under applicable Laws necessary for such Borrowing Subsidiary to
execute and deliver this Agreement and each other Loan Document to which it is
a party and to perform its Obligations hereunder and thereunder.

          (e) The
documentation referred to in Section 2.15 with respect to such
Borrowing Subsidiary.

          (f) A
favorable opinion of counsel to such Borrowing Subsidiary, dated the date of
such initial Credit Extension, in form and substance satisfactory to the
Administrative Agent.

          (g) Such
other approvals, opinions or documents as any Lender, through the
Administrative Agent, may reasonably request.

61

ARTICLE V

REPRESENTATIONS AND WARRANTIES

          The Company
and each Borrowing Subsidiary represents and warrants to the Administrative
Agent and the Lenders that:

          5.01 Existence, Qualification and Power; Compliance
with Laws. Each Loan Party (a) is duly organized, 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
governmental licenses, authorizations, consents and approvals to (i) own its
assets and carry on its business and (ii) execute, deliver and perform its
obligations under each Loan Document to which it is a party, (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 and (d) is in
compliance with all Laws, except in each case referred to in clause (b)(i),
(c) or (d), 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, (i)
any Contractual Obligation to which such Person is a party 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, in each case except as
could not reasonably be expected to have a Material Adverse Effect, or
(c) violate any Law. 

          5.03 Governmental Authorization; Other Consents.
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.

          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 that is a
party thereto, enforceable against such Loan Party in accordance with its
terms.

          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 the financial condition of the
Company 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 

62

the Company and its Subsidiaries as of the date thereof, including
liabilities for taxes, material commitments and Indebtedness.

          (b) The
unaudited consolidated financial statements of the Company and its Subsidiaries
dated October 31, 2012, and the related consolidated statements of income
or operations, shareholders’ equity and cash flows for the fiscal quarter ended
on that date (i) were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted
therein and (ii) fairly present the financial condition of the Company and its
Subsidiaries as of the date thereof and their results of operations for the
period covered thereby, subject, in the case of clauses (i) and (ii),
to the absence of footnotes and to normal year-end audit adjustments. 

          (c) Since
the date of the Audited Financial Statements through the Effective Date, 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.

          5.06 Litigation. There are no actions,
suits, proceedings, claims or disputes pending or, to the knowledge of the
Company after due and diligent investigation, threatened or contemplated, at
law, in equity, in arbitration or before any Governmental Authority, by or
against the Company or any of its Subsidiaries or against any of their
properties or revenues that (a) purport to affect this Agreement or any other
Loan Document, or any of the transactions contemplated hereby or (b) either
individually or in the aggregate could reasonably be expected to have a
Material Adverse Effect.

          5.07 Environmental Compliance.

          (a) The
operations and properties of the Company and each of its Subsidiaries comply in
all material respects with all applicable Environmental Laws and Environmental
Permits, all past non-compliance with such Environmental Laws and Environmental
Permits has been resolved without material ongoing obligations or costs, and no
circumstances exist that could be reasonably likely to (i) form the basis of an
Environmental Action against the Company or any of its Subsidiaries or any of
their properties that could reasonably be expected to have a Material Adverse
Effect or (ii) cause any such property to be subject to any restrictions on
ownership, occupancy, use or transferability under any Environmental Law that
could reasonably be expected to have a Material Adverse Effect.

          (b) Except
as could not reasonably be expected to have a Material Adverse Effect, none of
the properties currently owned or operated by the Company or any of its
Subsidiaries is listed or proposed for listing on the National Priorities List
under the Comprehensive Environmental Response, Compensation and Liability Act
of 1980 or on the Comprehensive Environmental Response, Compensation and
Liability Information System maintained by the U.S. Environmental Protection
Agency or any analogous foreign, state or local list or, to the best knowledge
of the Company, is adjacent to any such property.

          (c) All
Hazardous Materials generated, used, treated, handled or stored at or
transported to or from any property currently or formerly owned or operated by
the Company or 

63

any of its Subsidiaries have been disposed of in a manner not
reasonably expected to have a Material Adverse Effect. 

          5.08 Taxes. The Company 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 and those that could not reasonably be
expected to have a Material Adverse Effect. There is no proposed tax assessment
against the Company or any Subsidiary that would, if made, have a Material
Adverse Effect.

          5.09 ERISA Compliance.

          (a) No
ERISA Event has occurred or is reasonably expected to occur with respect to any
Plan that is reasonably expected to result in a Material Adverse Effect. 

          (b) As of
the last annual actuarial valuation date, the funding target attainment
percentage, as defined in Section 303 of ERISA, of each Plan exceeds 90%
except with respect to any Plan the unfunded current liability of which does
not exceed the Threshold Amount. 

          (c) Neither
the Company nor any ERISA Affiliate has incurred or is reasonably expected to
incur any Withdrawal Liability that is reasonably expected to result in a
Material Adverse Effect. 

          (d) Except
as could not reasonably be expected to have a Material Adverse Effect, neither
the Company nor any ERISA Affiliate has been notified by the sponsor of a
Multiemployer Plan that such Multiemployer Plan is in reorganization or has
been terminated, within the meaning of Title IV of ERISA, and no such
Multiemployer Plan is reasonably expected to be in reorganization or to be
terminated, within the meaning of Title IV of ERISA. 

          5.10 Subsidiaries. As of the Effective
Date, the Company has no Subsidiaries other than those specifically disclosed
in Schedule 5.10. Schedule 5.10 sets forth the jurisdiction of
organization of each Subsidiary as of the Effective Date.

          5.11 Margin Regulations; Investment Company Act.

          (a) No
Borrower 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. Following the application of the
proceeds of each Borrowing or drawing under each Letter of Credit, not more
than 25% of the value of the assets of the Company and its Subsidiaries on a
consolidated basis subject to the provisions of Section 7.01 or
subject to any restriction contained in any agreement or instrument between the
Borrowers and any Lender or any Affiliate of any Lender relating to
Indebtedness and within the scope of Section 8.01(e) will be margin
stock.

64

          (b) None of
the Company, any Person Controlling the Company, or any Subsidiary is or is
required to be registered as an “investment company” under the Investment
Company Act of 1940.

          5.12 Disclosure. No report, financial
statement, certificate or other information furnished in writing by or on
behalf of 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 (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or, when
taken as a whole, 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 “Projections”), the Company and the
Borrowing Subsidiaries represent only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time, it
being understood that the Projections are as to future events and are not to be
viewed as facts, the Projections are subject to significant uncertainties and
contingencies, many of which are beyond the Company’s and the Borrowing
Subsidiaries’ control, that no assurance can be given that any particular
Projections will be realized and the actual results during the period or
periods covered by any such Projections may differ significantly from the
projected results and such differences may be material.

          5.13 Compliance with Laws. Each of the
Company and each Subsidiary is in compliance 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 such requirement of Law or order,
writ, injunction or decree is being contested in good faith by appropriate
proceedings diligently conducted or in which any violations of such
requirements would not, in the aggregate for all such violations, have a
Material Adverse Effect.

          5.14 OFAC and PATRIOT Act. Neither the
Company nor any Subsidiary (a) is in violation of any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) or any enabling legislation or executive order
relating thereto or the PATRIOT Act, or (b) is a Sanctioned Person. 

ARTICLE VI

AFFIRMATIVE COVENANTS

          So long as
any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder (other than inchoate indemnity obligations) shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Company and
the Borrowing Subsidiaries shall, and shall (except in the case of the
covenants set forth in Sections 6.01, 6.02 and 6.03) cause
each Subsidiary to:

          6.01 Financial Statements. Deliver to the
Administrative Agent and each Lender, in form and detail reasonably
satisfactory to the Administrative Agent and the Required Lenders:

          (a) as soon
as available, but in any event within 90 days after the end of each fiscal
year, a consolidated balance sheet of the Company and its Subsidiaries as at
the end of such fiscal year, and the related consolidated statements of income
or operations, shareholders’ equity 

65

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 PricewaterhouseCoopers, LLP or another independent
certified public accountant of nationally recognized standing, 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
and which report shall state that such financial statements present fairly the
financial position of the Company and its Subsidiaries as of the date and for
the period indicated in conformity with GAAP; and

          (b) as soon
as available, but in any event within 45 days after the end of each of the
first three fiscal quarters of each fiscal year, a consolidated balance sheet
of the Company and its Subsidiaries as at the end of such fiscal quarter, and
the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal quarter and for the portion of the 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 Company as fairly presenting the
financial condition, results of operations, shareholders’ equity and cash flows
of the Company and its Subsidiaries in accordance with GAAP, subject only to
normal year-end audit adjustments and the absence of footnotes.

          As to any
information contained in materials furnished pursuant to Section 6.02(c),
the Company 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 Company to furnish the information and materials
described in clauses (a) and (b) above at the times specified
therein.

          6.02 Certificates; Other Information.
Deliver to the Administrative Agent and each Lender, in form and detail
satisfactory to the Administrative Agent and the Required Lenders:

          (a) concurrently
with the delivery of the financial statements referred to in Sections 6.01(a)
and (b), a duly completed Compliance Certificate signed by a Responsible
Officer of the Company;

          (b)
promptly after any request by the Administrative Agent or any Lender, copies of
any detailed audit reports, management letters or recommendations submitted to
the board of directors (or the audit committee of the board of directors) of
the Company by independent accountants in connection with the accounts or books
of the Company or any Subsidiary, or any audit of any of them;

          (c)
promptly after the same are available, copies of each annual report, proxy or
financial statement or other report or communication sent to the stockholders
of the Company, and copies of all annual, regular, periodic and special reports
and registration statements which the Company may file or be required to file
with the SEC under Section 13 or 15(d) of the Securities Exchange Act of
1934, and not otherwise required to be delivered to the Administrative Agent
pursuant hereto;

66

          (d)
promptly, and in any event within ten (10 Business Days after receipt thereof
by any Loan Party or any Subsidiary thereof, copies of each notice or other
correspondence received from the SEC (or comparable agency in any applicable
non-U.S. jurisdiction) concerning any investigation or possible investigation
or other inquiry by such agency regarding financial or other operational
results of any Loan Party or any Subsidiary thereof that could reasonably be
expected to have a Material Adverse Effect; and

          (e)
promptly, such additional information regarding the business, financial or
corporate affairs of the Company or any Subsidiary, or compliance with the
terms of the Loan Documents, 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(c) (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 Company posts such documents, or provides a link thereto, on the
Company’s website on the Internet at the website address listed on Schedule
11.02; or (ii) on which such documents are posted on the Company’s behalf
on IntraLinks/IntraAgency or another relevant 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 Company shall deliver paper copies of such documents to the
Administrative Agent or any Lender that requests the Company 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 Company shall notify
(which may be by facsimile or electronic mail) the Administrative Agent and
each Lender of the posting of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft
copies) of such documents. Notwithstanding anything contained herein, upon the
request of the Administrative Agent or any Lender, the Company shall deliver
paper copies of the Compliance Certificates required by Section 6.02(a)
to the Administrative Agent or such Lender. 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 Company 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.

          Each
Borrower hereby acknowledges that (a) the Administrative Agent and/or the
Arrangers will make available to the Lenders and the L/C Issuer Communications
by posting such Communications on IntraLinks 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 any Borrower or its securities) (each, a “Public Lender”).
Each Borrower hereby agrees that (w) all Communications 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; (x) by marking Communications “PUBLIC,”
the Borrowers shall be deemed to have authorized the Administrative Agent, the
Arrangers the L/C Issuer and the Lenders to treat such Communications as either
publicly available information or not material information (although it may be
sensitive and proprietary) with respect to the Borrowers or their respective
securities for purposes of United States federal 

67

and state securities laws; (y) all Communications marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated
“Public Investor;” and (z) the Administrative Agent and the Arrangers shall be
entitled to treat any Communications that are not marked “PUBLIC” as being
suitable only for posting on a portion of the Platform not designated “Public
Investor.”

          6.03 Notices. Promptly notify the Administrative
Agent and each Lender:

          (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 Company or any Subsidiary, (ii) any
dispute, litigation, investigation, proceeding or suspension between the
Company or any Subsidiary and any Governmental Authority or (iii) the
commencement of, or any material development in, any litigation or proceeding
affecting the Company or any Subsidiary, including pursuant to any applicable
Environmental Law, in each case that could reasonably be expected to have a
Material Adverse Effect;

          (c) of the
occurrence of any ERISA Event that could reasonably be expected to have a
Material Adverse Effect; and

          (d) of any
material change in accounting policies or financial reporting practices by the
Company or any Loan Party.

          Each notice
pursuant to this Section shall be accompanied by a statement of a
Responsible Officer of the Company setting forth details of the occurrence
referred to therein and stating what action the Company has taken and proposes
to take with respect thereto. Each notice pursuant to Section 6.03(a)
shall describe with particularity any and all provisions of this Agreement and
any other Loan Document that have been breached.

          6.04 Payment of Obligations. Pay and
discharge as the same shall become due and payable (a) all tax liabilities,
assessments and governmental charges or levies upon it or its properties or
assets and (b) all lawful claims which, if unpaid, would by law become a Lien
upon its property; provided that neither the Company nor any of its
Subsidiaries shall be required to pay or discharge (i) any such tax,
assessment, charge or claim that is being contested in good faith and by proper
proceedings and as to which appropriate reserves are being maintained, unless
and until any Lien resulting therefrom attaches to its property and becomes
enforceable against its other creditors, or (ii) any such tax, assessment,
charge or claim that could not reasonably be expected to have a Material
Adverse Effect.

          6.05 Preservation of Existence, Etc.
Preserve and maintain its corporate existence, rights (charter and statutory)
and franchises; provided that the Company and each of its Subsidiaries
may consummate any merger, consolidation or sale of assets permitted under Section 7.02
and provided, further, that neither the Company nor any of its
Subsidiaries shall be required to preserve any right or franchise if the Board
of Directors of the Company or such Subsidiary shall determine that the
preservation thereof is no longer desirable in the conduct of 

68

the business of the Company or such Subsidiary, as the case may be, and
that the loss thereof is not disadvantageous in any material respect to the
Company and its Subsidiaries taken as a whole or the Lenders.

          6.06 Maintenance of Properties. 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 excepted.

          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; provided that the Company and its
Subsidiaries may instead self-insure to the same general extent as other
manufacturing companies of similar size as the Company or such Subsidiary and
to the extent consistent with prudent business practice.

          6.08 Compliance with Laws. Comply in all
material respects with the requirements of all Laws and all orders, writs,
injunctions and decrees applicable to it or to its business or property, except
in such instances in which such requirement of Law or order, writ, injunction
or decree is being contested in good faith by appropriate proceedings
diligently conducted or in which failure to comply could not reasonably be
expected to have a Material Adverse Effect.

          6.09 Books and Records. Maintain proper
books of record and account in conformity with GAAP consistently applied. 

          6.10 Inspection Rights. Permit
representatives and independent contractors of the Administrative Agent and
each Lender to visit and inspect any of its properties, to examine its
corporate, financial and operating records, and make copies thereof or
abstracts therefrom, and to discuss its affairs, finances and accounts with its
directors, officers, and independent public accountants, all at the Lenders’
expense and at such reasonable times during normal business hours and as often
as may be reasonably desired, upon reasonable advance notice to the Company; provided
that when an Event of Default exists the Administrative Agent or any Lender (or
any of their respective representatives or independent contractors) may do any
of the foregoing at the expense of the Company at any time during normal
business hours and without advance notice.

          6.11 Use of Proceeds. Use the proceeds of
the Credit Extensions to refinance certain existing Indebtedness of the Company
and for working capital, capital expenditures and general corporate purposes
not in contravention of any Law or of any Loan Document.

          6.12 Compliance with Environmental Laws.
(a) Comply, and cause each of its Subsidiaries to comply, with all applicable
Environmental Laws and Environmental Permits, (b) obtain and renew and cause
each of its Subsidiaries to obtain and renew all Environmental Permits
necessary for its operations and properties and (c) conduct, and cause each of
its Subsidiaries to conduct, any investigation, study, sampling and testing,
and undertake any cleanup, removal, remedial or other action necessary to
remove and clean up all Hazardous Materials from any of its properties,
required by Environmental Laws, other than, in the case of 

69

(a) through (c), such failures the consequences of which in the
aggregate would not have a Material Adverse Effect; provided that
neither the Company nor any of its Subsidiaries shall be required to undertake
any such cleanup, removal, remedial or other action to the extent that its
obligation to do so is being contested in good faith and by proper proceedings
and appropriate reserves are being maintained with respect to such
circumstances.

ARTICLE VII

NEGATIVE COVENANTS

          So long as
any Lender shall have any Commitment hereunder, any Loan or other Obligation
(other than inchoate indemnity obligations) hereunder shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Company and
each Borrowing Subsidiary shall not, nor shall they permit any Subsidiary 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:

          (a)
Permitted Liens;

          (b) the
Liens existing on the Effective Date and described on Schedule 7.01;1 

          (c) Liens
on property of a Person existing at the time such Person is merged into or
consolidated with the Company or any Subsidiary of the Company or becomes a
Subsidiary of the Company, provided that such Liens were not created in
contemplation of such merger, consolidation or acquisition and do not extend to
any assets other than those of the Person so merged into or consolidated with
the Company or such Subsidiary or acquired by the Company or such Subsidiary;

          (d) Liens
on receivables of the Company or any Subsidiary (and in property securing or
otherwise supporting such receivables) in favor of the Company or Donaldson
Capital;

          (e) Liens
on receivables of any kind (and in property securing or otherwise supporting
such receivables) in connection with the agreements for limited recourse or
non-recourse sales by the Company or any of its Subsidiaries for cash of such
receivables or interests therein, provided that (A) any such agreement
is of a type and on terms customary for comparable transactions in the good
faith judgment of the Company, (B) such agreement does not create any interest
in any asset other than receivables (and property securing or otherwise
supporting such receivables) and proceeds of the foregoing and (C) on any date
of determination, the aggregate face value of such receivables shall not exceed
at any time outstanding $200,000,000;

          (f) Liens
created under any agreement relating to the sale, transfer, or other
disposition of assets permitted hereunder, if such Liens relate solely to the
assets to be sold, transferred, or otherwise disposed of;

	
  

 	
  

 
	
 1 Schedule 7.01 should not include any securitization
indebtedness. 

 

70

          (g) Liens
solely on any cash earnest money deposits made by the Company or any Subsidiary
in connection with any letter of intent or purchase agreement permitted
hereunder;

          (h) Liens
arising with respect to repurchase obligations arising in the ordinary course
of the cash management activities of the Company or its Subsidiaries; 

          (i)
judgment liens and judicial attachment liens not constituting an Event of
Default under Section 8.01(h);

          (j) any
interest or title of a lessor or licensor under any operating lease or license;

          (k) Liens
on cash securing Letters of Credit as required under this Agreement;

          (l)
licenses, leases, or subleases granted to other Persons in the ordinary course
of business and not interfering in any material respect with the business of
the Borrower or any Guarantor;

          (m) Liens
securing obligations incurred to pay annual premiums for property, casualty or
liability insurance policies maintained by the Company or any Subsidiary,
provided that such Liens attach only to insurance policies and proceeds
thereof, and pledges and deposits and other Liens securing liability for
reimbursement or indemnification obligations of (including obligations in
respect of letters of credit or bank guarantees for the benefit of) insurance
carriers providing property, casualty, or liability insurance to the Company or
any Subsidiary);

          (n) the
replacement, extension or renewal of any Lien permitted by this Section upon or
in the same property theretofore subject thereto or the replacement, extension
or renewal (without increase in the principal amount of Indebtedness (except
for any increase attributable to any premium or fee payable in connection with
such replacement, extension, or renewal)) of the Indebtedness secured thereby;
and

          (o) additional Liens securing Indebtedness,
which Liens are not otherwise permitted by paragraphs (a) through (e) above,
provided that, at the time of creation, assumption or incurrence thereof and
immediately after giving effect thereto and to the application of the proceeds
therefrom, secured Priority Debt outstanding does not exceed $100,000,000 in
aggregate principal amount.

          7.02 Fundamental Changes. Merge or
consolidate with or into any Person or convey, transfer, lease or otherwise
dispose of (whether in one transaction or in a series of transactions) all or
substantially all of the assets of the Company and its Subsidiaries taken as a
whole (whether now owned or hereafter acquired) to any Person, except that any
Subsidiary of the Company may merge or consolidate with or into any other
Subsidiary of the Company, and except that any Subsidiary of the Company may
merge into the Company, and the Company or any Subsidiary of the Company may
merge with any other Person so long as (a) in the case of any merger involving
the Company, the Company is the surviving corporation, and (b) otherwise, the
surviving corporation is a Subsidiary of the Company, provided, in each
case, that no Default shall have occurred and be continuing at the time of such
proposed transaction or would result therefrom.

71

          7.03 Investments. Make any Investment, except:

          (a) Investments in cash equivalents and
other cash management related-investments consistent with the investment policy
from time to time adopted by the Company’s board of directors;

          (b) Investments by the Company in any
Wholly-Owned Subsidiary or by any Subsidiary in the Company or a Wholly-Owned
Subsidiary;

          (c) Investments consisting of extensions of
credit in the nature of accounts receivable or notes receivable arising from
the grant of trade credit 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;

          (d) Guarantees arising in the ordinary
course of business and Guarantees of Indebtedness permitted under Section
7.09;

          (e) Investments made to consummate
Permitted Acquisitions;

          (f) investments in mutual funds related to
non-qualified, deferred compensation plans, not to exceed the plan obligations;

          (g) investments held in connection with the
settlement, satisfaction, or enforcement of obligations or claims due or owing
to the Company or any Subsidiary or as security for any such obligations or
claim;

          (h) investments in the form of advances to
employees in the ordinary course of business for moving, relocation and travel
expenses and other loans to employees for any lawful purpose;

          (i)
investments at no time aggregating more than $5,000,000 in the form of
promissory notes, securities, and other non-cash consideration received in
connection with any sales, transfers, or other dispositions permitted by Section
7.02;

          (j) Investments in existence on the
Effective Date and listed on Schedule 7.03; and

          (k) any other Investment that, when made,
does not cause the aggregate amount of Investments permitted solely by this
clause (j) to exceed 15% of Consolidated Net Worth.

          7.04 Accounting Changes. Make or permit any
material change in accounting policies or reporting practices, except as
permitted by GAAP or, with respect to Foreign Subsidiaries, the applicable GAAP
equivalent.

          7.05 Financial Covenants.

          (a) Consolidated
Interest Coverage Ratio. Permit the Consolidated Interest Coverage Ratio at
any time to be less than 3.5 to 1.0.

72

          (b) Leverage
Ratio. Permit the Leverage Ratio at any time to be greater than 3.0 to 1.0.

          7.06 Change in Nature of Business. Engage in
any material line of business substantially different from those lines of
business conducted by the Company and its Subsidiaries on the date hereof or
any business reasonably related or incidental thereto.

          7.07 Transactions with Affiliates. Enter
into any material transaction of any kind with any Affiliate of the Company,
whether or not in the ordinary course of business, other than on fair and
reasonable terms substantially as favorable to the Company or such Subsidiary
as would be obtainable by the Company or such Subsidiary 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 (a) transactions between
or among the Company and any of its Wholly-Owned Subsidiaries or between and
among any Wholly-Owned Subsidiaries, (b) any transaction with an Affiliate
or Subsidiary not prohibited by Section 7.03, (c) employment,
indemnification, and compensation arrangements (including arrangements made
with respect to benefits, bonuses and equity-based awards) entered into in the
ordinary course of business with members of the board of directors, officers,
employees or consultants of the Company or a Subsidiary, and (d) payments by
the Company and the Subsidiaries pursuant to tax sharing agreements among the
Company and the Subsidiaries on customary terms that require each party to make
payments when such taxes are due or refunds received of amounts equal to the
income tax liabilities and refunds generated by each such party calculated on a
separate return basis and payments to the party generating tax benefits and
credits of amounts equal to the value of such tax benefits and credits made
available to the group by such party.

          7.08 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) other than repurchases of stock of the
Company provided such repurchases are in compliance with 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.

          7.09 Priority Debt. Permit the aggregate
outstanding principal amount of Priority Debt at any time to be greater than
20% of Consolidated Net Worth, determined as of the most recent date for which Company financial
statements have been delivered pursuant to Section 6.01.

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.
Any Borrower or any other Loan Party fails to pay (i) when and as required to
be paid herein, any amount of principal of any Loan or any L/C Obligation, or
(ii) within three 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

73

          (b) Specific
Covenants. The Company or any Borrowing Subsidiary fails to perform or
observe any term, covenant or agreement contained in any of Section 6.01,
6.02, 6.03(a), 6.05 or Article VII; or

          (c) Other
Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in clause (a) or (b) above) contained in
any Loan Document on its part to be performed or observed and such failure
continues for 30 days; or

          (d) Representations
and Warranties. Any representation, warranty, certification or statement of
fact made or deemed made by or on behalf of the Company 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) The Company or any Subsidiary (A) fails to make any payment when due
(whether by scheduled maturity, required prepayment, acceleration, demand or
otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness
hereunder and Indebtedness under Swap Contracts) 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 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 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; or (ii) there occurs under any
Swap Contract an Early Termination Date (as defined in such Swap Contract) or
similar event resulting from (A) any event of default under such Swap Contract
as to which the Company 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 Company or any Subsidiary is an Affected Party
(as so defined) and, in either event, the Swap Termination Value owed by the
Company or such Subsidiary as a result thereof is greater than the Threshold
Amount; provided that this clause (e) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of
the property or assets securing such Indebtedness if such sale or transfer is
permitted hereunder and under the documents providing for such Indebtedness,
and provided further, that an Event of Default under this clause
(e) caused by the occurrence of a breach or default with respect to
Indebtedness in the aggregate in excess of the Threshold Amount shall be cured
for purposes of this Agreement upon the Person asserting such breach or default
waiving such breach or default or upon the Company or a Subsidiary curing such
breach or default if, at the time of such waiver or such cure the
Administrative Agent has not exercised any rights or remedies with respect to
an Event of Default under this clause (e); or

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          (f)
Insolvency Proceedings, Etc. Any Loan Party or any of its
Subsidiaries 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 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 days, or an order for relief is entered in any such proceeding;
or

          (g) Inability
to Pay Debts; Attachment. (i) The Company or any Subsidiary 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 30 days
after its issue or levy; or

          (h) Judgments.
There is entered against the Company or any Subsidiary (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 20 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 Company under Title IV of ERISA to the Pension Plan, Multiemployer
Plan or the PBGC in an aggregate amount in excess of the Threshold Amount, or
(ii) the Company 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, ceases to be in full force and
effect; or any Loan Party or any other Person 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:

75

          (a) declare
by written notice to the Company 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
by written notice to the Company 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 Borrowers;

          (c) require
that the Borrowers Cash Collateralize the L/C Obligations (in an amount equal
to the then Outstanding Amount thereof);

          (d) if a
Letter of Credit is issued and outstanding in favor of the trustee under the
Trust Indenture dated as of September 1, 1999 between the Industrial
Development Board of the City of Auburn and U.S. Bank Trust National
Association, as Trustee, relating to the Industrial Development Revenue Bonds
(Donaldson Company, Inc. Project Series 1991) (the “Indenture”), provide
notice that such Event of Default has occurred to the trustee under the
Indenture as provided in the Indenture and the applicable Letter of Credit; and

          (e)
exercise on behalf of itself and the Lenders all rights and remedies available
to it and the Lenders under the Loan Documents or applicable Law;

provided that upon the occurrence of an actual or
deemed entry of an order for relief with respect to any 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 Borrowers 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:

          First,
to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including Attorney Costs 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 and interest) payable to the Lenders
and the L/C Issuer (including Attorney Costs and amounts payable under Article III),
ratably among them in proportion to the amounts described in this clause Second
payable to them;

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          Third,
to payment of that portion of the Obligations constituting accrued and unpaid
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, after all of the Obligations have been indefeasibly paid
in full, to the Company or as otherwise required by Law.

Subject
to Section 2.05(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

AGENT

          9.01 Appointment and Authority. Each of the
Lenders and the L/C Issuer hereby irrevocably appoints Wells Fargo 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 Issuer,
and neither any Borrower nor any other Loan Party shall have rights as a third
party beneficiary of any of such provisions. It is understood and agreed that
the use of the term “agent” herein or in any other Loan Documents (or any other
similar term) with reference to the Administrative Agent is not intended to
connote any fiduciary or other implied (or express) obligations arising under
agency doctrine of any applicable Law. Instead such term is used as a matter of
market custom, and is intended to create or reflect only an administrative
relationship between contracting parties.

          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 with  

77

the Borrowers 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, including for the avoidance of doubt any
action that may be in violation of the automatic stay under any Debtor Relief
Law or that may effect a forfeiture, modification or termination of property of
a Defaulting Lender in violation of any Debtor Relief 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 any of the Borrowers or any of their respective
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 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 Company, a Lender or the 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 IV or elsewhere herein, other
than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

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          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 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 the L/C Issuer, the Administrative Agent may presume that such
condition is satisfactory to such Lender or the L/C Issuer unless the
Administrative Agent shall have received notice to the contrary from such
Lender or the 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 Company), 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. 

          (a) The
Administrative Agent may at any time give notice of its resignation to the
Lenders, the L/C Issuer and the Company. Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, with the consent of the
Company (absent a continuing Default), 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 (or such earlier day as shall be agreed by
the Required Lenders) (the “Resignation Effective Date”), then
the retiring Administrative Agent may (but shall not be obligated to), on
behalf of the Lenders and the L/C Issuer, appoint a successor Administrative
Agent meeting the qualifications set forth above. Whether or not a successor has been appointed, such resignation shall
become effective in accordance with such notice on the Resignation Effective
Date.

          (b) If the
Person serving as Administrative Agent is a Defaulting Lender pursuant to
clause (d) of the definition thereof, the Required Lenders may, to the extent
permitted by applicable Law, by notice in writing to the Company and such
Person, remove such Person as Administrative Agent and, with the consent of the
Company (absent a continuing Default), not to be unreasonably withheld appoint
a successor. If no such successor shall have been so appointed 

79

by the Required Lenders and shall have accepted such appointment within
30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal
Effective Date”), then such removal shall nonetheless become effective in
accordance with such notice on the Removal Effective Date.

          (c) With
effect from the Resignation Effective Date or the Removal Effective Date (as
applicable), (1) the retiring or removed 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 Issuer under any of
the Loan Documents, the retiring or removed Administrative Agent shall continue
to hold such collateral security until such time as a successor Administrative
Agent is appointed) and (2) except for any indemnity payments owed to the
retiring or removed Administrative Agent, 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 the L/C Issuer directly, until such time, if any,
as the Required Lenders appoint a successor Administrative Agent as provided
for above. 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 removed
Administrative Agent (other than any rights to indemnity payments owed to the
retiring or removed Administrative Agent), and the retiring or removed
Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents. The fees payable by the Company to
a successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Company and such successor.
After the retiring or removed Administrative Agent’s resignation or removal
hereunder and under the other Loan Documents, the provisions of this Article
and Sections 11.04 and 11.05 shall continue in effect for the
benefit of such retiring or removed Administrative Agent, its sub-agents and
their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while the retiring or removed Administrative Agent was
acting as Administrative Agent.

          (d) Any
resignation by Wells Fargo as Administrative Agent pursuant to this Section
shall also constitute its resignation as L/C Issuer. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (i) such
successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring L/C Issuer, (ii) the retiring L/C
Issuer shall be discharged from all of their respective duties and obligations
hereunder or under the other Loan Documents, and (iii) 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 arrangement
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 the 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 the 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 

80

based upon this Agreement, any other Loan Document or any related agreement
or any document furnished hereunder or thereunder.

          9.08
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 any 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, the L/C Issuer and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and their respective agents and counsel and all other
amounts due the Lenders, the L/C Issuer and the Administrative Agent under Sections
2.05(i) and (j), 2.10 and 11.04) 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 the 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 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 the 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.

          9.09
Cash Collateral and Guaranty Matters. The Lenders
irrevocably authorize the Administrative Agent to (and the Administrative Agent
agrees that, so long as it has no knowledge that a Default exists or would
result therefrom, it will upon the request of the Company), (a) release
Donaldson Capital from its obligations under the Guaranty if Donaldson Capital
ceases to be a Subsidiary as a result of a transaction permitted hereunder and
(b) release any Cash Collateral granted to it 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 (ii)
subject to Section 11.01, if approved, authorized or ratified in
writing by the Required Lenders. Upon request by the Administrative Agent at
any time, the Required Lenders 

81

will confirm in writing the Administrative Agent’s authority to release
any Cash Collateral or release Donaldson Capital from its obligations under the
Guaranty pursuant to this Section 9.09.

          9.10
Other Agents; Arrangers and Managers. None
of the Lenders or other Persons identified on the facing page or signature
pages of this Agreement as a “syndication agent,” “joint lead arranger,” or
“joint book manager” shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than, in the case of such
Lenders, those applicable to all Lenders as such. Without limiting the
foregoing, none of the Lenders or other Persons so identified shall have or be
deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders
or other Persons so identified in deciding to enter into this Agreement or in
taking or not taking action hereunder.

ARTICLE X

GUARANTEE

          10.01
Unconditional Guarantee. For valuable consideration,
receipt whereof is hereby acknowledged, and to induce each Lender to make
Credit Extensions to and on account of the Borrowing Subsidiaries, to induce
the L/C Issuer to issue Letters of Credit hereunder and to induce the
Administrative Agent to act hereunder, the Company hereby unconditionally and
irrevocably guarantees to each Lender, the L/C Issuer and the Administrative
Agent the punctual payment when due, whether at stated maturity, by
acceleration or otherwise, of all Obligations of any Borrowing Subsidiary,
whether for principal, interest, fees, expenses or otherwise, whether direct or
indirect, absolute or contingent or now existing or hereafter arising (such
Obligations being the “Guaranteed Obligations”). Without limiting the
generality of the foregoing, the Company’s liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and would be owed by
any Borrowing Subsidiary to the Administrative Agent, the L/C Issuer or any
other Lender under this Agreement but for the fact that they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or
similar proceeding involving any Borrowing Subsidiary. This is a guarantee of
payment and not of collection merely.

          10.02
Guarantee Absolute. The Company guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of
this Agreement, regardless of any law, regulation or order now or hereafter in
effect in any jurisdiction affecting any of such terms or the rights of any
Lender or the Administrative Agent with respect thereto. The Obligations of the
Company under this Article X are independent of the Guaranteed
Obligations, and a separate action or actions may be brought and prosecuted
against the Company to enforce this Article X, irrespective of
whether any action is brought against any Borrowing Subsidiary or whether any
Borrowing Subsidiary is joined in any such action or actions. The liability of
the Company under this guarantee shall be irrevocable, absolute and
unconditional irrespective of, and the Company hereby irrevocably waives any
defense it may now or hereafter have in any way relating to, any or all of the
following:

          (a) any
lack of validity or enforceability of this Agreement or any other agreement or
instrument relating thereto;

82

          (b) any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Guaranteed Obligations, or any other amendment or waiver of or
any consent to departure from this Agreement;

          (c) any
taking, exchange, release or non-perfection of any collateral or any taking,
release or amendment or waiver of or consent to departure from any other
guaranty, for all or any of the Guaranteed Obligations;

          (d) any
change, restructuring or termination of the corporate structure or existence of
any Borrowing Subsidiary; or

          (e) any
other circumstance (including any statute of limitations to the fullest extent
permitted by applicable Law) which might otherwise constitute a defense
available to, or a discharge of, the Company, any Borrowing Subsidiary or a
guarantor, other than the defense of payment in full of the Guaranteed
Obligations.

          This
guaranty shall continue to be effective or be reinstated, as the case may be,
if at any time any payment of any of the Guaranteed Obligations is rescinded or
must otherwise be returned by any Lender, the L/C Issuer or the Administrative
Agent upon the insolvency, bankruptcy or reorganization of any Borrowing
Subsidiary or otherwise, all as though such payment had not been made.

          10.03
Waivers. The Company hereby expressly waives
promptness, diligence, notice of acceptance, presentment, demand for payment,
protest, any requirement that any right or power be exhausted or any action be
taken against any Borrowing Subsidiary or against any other guarantor of all or
any portion of the Total Outstandings, and all other notices and demands
whatsoever.

          (a) The
Company hereby waives any right to revoke this guaranty, and acknowledges that
this guaranty is continuing in nature and applies to all Guaranteed
Obligations, whether existing now or in the future and regardless of whether
the Total Outstandings are reduced to zero at any time or from time to time.

          (b) The
Company acknowledges that it will receive substantial direct and indirect
benefits from the financing arrangements contemplated herein and that the
waivers set forth in this Article X are knowingly made in contemplation of
such benefits.

          10.04
Subrogation. The Company will not exercise any rights
that it may now or hereafter acquire against any Borrowing Subsidiary or any
other insider guarantor that arise from the existence, payment, performance or
enforcement of the Guaranteed Obligations under this Agreement, including any
right of subrogation, reimbursement, exoneration, contribution or
indemnification and any right to participate in any claim or remedy of the
Administrative Agent, the L/C Issuer or any other Lender against a Borrowing
Subsidiary or any other insider guarantor or any collateral, whether or not
such claim, remedy or right arises in equity or under contract, statute or
common law, including the right to take or receive from a Borrowing Subsidiary
or any other insider guarantor, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security on account
of such claim, remedy or right, unless and until all 

83

of the Guaranteed Obligations and all other amounts payable under this
guaranty shall have been paid in full in cash and the Commitments shall have
terminated. If any amount shall be paid to the Company in violation of the
preceding sentence at any time prior to the later of the payment in full in
cash of the Guaranteed Obligations and all other amounts payable under this
guaranty and the termination of the Commitments, such amount shall be held in
trust for the benefit of the Administrative Agent, the L/C Issuer and the other
Lenders and shall forthwith be paid to the Administrative Agent to be credited
and applied to the Guaranteed Obligations and all other amounts payable under
this guaranty, whether matured or unmatured, in accordance with the terms of
this Agreement, or to be held as collateral for any Guaranteed Obligations or
other amounts payable under this guaranty thereafter arising. The Company
acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this Agreement and that the waiver set
forth in this section is knowingly made in contemplation on such benefits.

          10.05
Survival. This guaranty is a continuing guarantee and
shall (a) remain in full force and effect until payment in full in cash of the
Guaranteed Obligations and all other amounts payable under this guaranty and
the termination of the Commitments, (b) be binding upon the Company, its
successors and assigns, (c) inure to the benefit of and be enforceable by each
Lender (including each assignee Lender pursuant to Section 11.07),
the L/C Issuer and the Administrative Agent and their respective successors,
transferees and assigns and (d) shall be reinstated if at any time any payment
to a Lender, the L/C Issuer or the Administrative Agent hereunder is required
to be restored by such Lender, the L/C Issuer or the Administrative Agent.
Without limiting the generality of the foregoing clause (c), each Lender
may assign or otherwise transfer its interest in any Loan to any other Person,
and such other Person shall thereupon become vested with all the rights in
respect thereof granted to such Lender herein or otherwise.

ARTICLE XI

MISCELLANEOUS

          11.01
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 Company or any other Loan Party therefrom, shall be effective
unless in writing signed by the Required Lenders and the Company 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
that no such amendment, waiver or consent shall:

          (a) waive
any condition set forth in Section 4.01(a) without the written
consent of each Lender;

          (b) 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;

          (c)
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;

84

          (d) reduce
the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 11.01)
any fees or other amounts payable hereunder or under any other Loan Document
without the written consent of each Lender directly affected thereby; provided
that only the consent of the Required Lenders shall be necessary to amend the
definition of “Default Rate” or to waive any obligation of the Borrowers to pay
interest or Letter of Credit fees at the Default Rate;

          (e) change Section 2.14
or Section 8.03 or any provision of this Agreement providing for
the pro rata nature of disbursements by the Lenders in a manner that would
alter the pro rata sharing of payments or disbursements required thereby
without the written consent of each Lender;

          (f) amend Section 1.09
or the definition of “Offshore Currency” without the written consent of each
Lender;

          (g) 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;

          (h) except
as permitted under Section 9.09, release the Company from its
obligations under Article X or release Donaldson Capital from the
Guaranty without the written consent of each Lender; or

          (i) extend
the expiry date of any Letter of Credit beyond the date which is one year after
the Maturity Date without the written consent of each Lender;

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 Letter of Credit Application 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 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 (iii) the Fee
Letters may be amended, or rights or privileges thereunder waived, in a writing
executed only by the parties thereto. 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.

          11.02
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:

85

	
  

 	
  

 
	
  

 	
           (i) if to
 the Borrowers, the Administrative Agent or the L/C Issuer, to the address,
 telecopier number, electronic mail address or telephone number specified for
 such Person on Schedule 11.02; 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 Company
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), 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; provided that, for both clauses (i) and (ii) above, if such
notice, email or other communication is not sent during the normal business
hours of the recipient, such notice, email or other communication shall be
deemed to have been sent at the opening of business on the next business day
for the recipient. 

          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.

86

          (c) Platform.

	
  

 	
  

 
	
  

 	
           (i) Each
 Loan Party agrees that the Administrative Agent may, but shall not be
 obligated to, make the Communications available to the L/C Issuer and the
 other Lenders by posting the Communications on Debt Domain, Intralinks,
 Syndtrak or a substantially similar electronic transmission system (the “Platform”).

 
	
  

 	
  

 
	
  

 	
           (ii) The
 Platform is provided “as is” and “as available.” The Agent Parties (as
 defined below) do not warrant the adequacy of the Platform and expressly
 disclaim liability for errors or omissions in the Communications. No warranty
 of any kind, express, implied or statutory, including, without limitation,
 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 Communications or
 the Platform. In no event shall the Administrative Agent or any of its
 Related Parties (collectively, the “Agent Parties”) have any liability
 to any Loan Party, any Lender or any other Person or entity for damages of
 any kind, including, without limitation, direct or indirect, special,
 incidental or consequential damages, losses or expenses (whether in tort,
 contract or otherwise) arising out of any Loan Party’s or the Administrative
 Agent’s transmission of communications through the Platform. 

 

          (d) Change
of Address, Etc. Each of the Borrowers, the Administrative Agent and the
L/C Issuer may change its address, telecopier or telephone number or e-mail
address 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 Company, the Administrative Agent and the L/C Issuer. 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, 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. Furthermore, each Public Lender agrees to cause
at least one individual at or on behalf of such Public Lender to at all times
have selected the “Private Side Information” or similar designation on the
content declaration screen of the Platform in order to enable such Public
Lender or its delegate, in accordance with such Public Lender’s compliance
procedures and applicable Law, including United States federal and state
securities Laws, to make reference to Communications that are not made
available through the “Public Side Information” portion of the Platform and
that may contain material non-public information with respect to any Borrower
or its securities for purposes of United States federal or state securities
laws.

          (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 Loan Notices (Notices of
Conversion/Continuation)) purportedly given by or on behalf of any 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. Subject to the limitations set forth in
the proviso in Section 11.05(a), the Company 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 

87

on each notice purportedly given by or on behalf of any 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.

          11.03
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.

          11.04
Attorney Costs, Expenses and Taxes. The Borrowers
jointly and severally agree (a) to pay or reimburse the Administrative Agent
for all reasonable out-of-pocket costs and expenses incurred in connection with
the development, preparation, negotiation and execution of this Agreement and
the other Loan Documents and any amendment, waiver, consent or other
modification of the provisions hereof and thereof (whether or not the
transactions contemplated hereby or thereby are consummated), and the
consummation and administration of the transactions contemplated hereby and
thereby, including all Attorney Costs and (b) to pay or reimburse the
Administrative Agent and each Lender for all costs and expenses incurred in
connection with the enforcement, attempted enforcement or preservation of any
rights or remedies under this Agreement or the other Loan Documents (including
all such costs and expenses incurred during any “workout” or restructuring in
respect of the Obligations and during any legal proceeding, including any
proceeding under any Debtor Relief Law), including all Attorney Costs. The
foregoing costs and expenses shall include all search, filing, recording, title
insurance and appraisal charges and fees and taxes related thereto, and other
out-of-pocket expenses incurred by the Administrative Agent and the cost of
independent public accountants and other outside experts retained by the
Administrative Agent or any Lender. All amounts due under this Section 11.04
shall be payable within ten Business Days after demand therefor. The agreements
in this Section shall survive the termination of the Aggregate Commitments
and repayment of all other Obligations.

          11.05
Indemnification by the Borrowers. (a) Whether or not
the transactions contemplated hereby are consummated, the Borrowers shall
jointly and severally indemnify and hold harmless the Administrative Agent, the
Arrangers, each Lender and the L/C Issuer, and each Related Party of any of the
foregoing (collectively the “Indemnitees”) from and against any and all
liabilities, obligations, losses, damages, penalties, claims, demands, actions,
judgments, suits, costs, expenses and disbursements (including Attorney Costs)
of any kind or nature whatsoever which may at any time be imposed on, incurred
by or asserted against any such Indemnitee in any way relating to or arising
out of or in connection with (a) the execution, delivery, enforcement,
performance or administration of any Loan Document or any other agreement,
letter or instrument delivered in connection with the transactions contemplated
thereby or the consummation of the transactions contemplated thereby, (b) any
Commitment, 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),
(c) any actual or alleged presence or release of Hazardous Materials on or 

88

from any property currently or formerly owned or operated by the
Company, any Subsidiary or any other Loan Party, or any Environmental Liability
related in any way to the Company, any Subsidiary or any other Loan Party or
(d) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other
theory (including any investigation of, preparation for, or defense of any
pending or threatened claim, investigation, litigation or proceeding) and
regardless of whether any Indemnitee is a party thereto (all the foregoing,
collectively, the “Indemnified Liabilities”), in all cases, whether or
not caused by or arising, in whole or in part, out of the negligence of the Indemnitee;
provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such liabilities, obligations, losses, damages,
penalties, claims, demands, actions, judgments, suits, costs, expenses or
disbursements resulted from (x) such
Indemnitee’s gross negligence or willful misconduct (as determined by a court
of competent jurisdiction in a final and non-appealable decision), (y) a material breach of the obligations under a
Loan Document of such Indemnitee (as determined by a court of competent
jurisdiction in a final and non-appealable decision) or (z) any
proceeding brought by an Indemnitee against another Indemnitee (other than
against an Arranger in its capacity as such or the Administrative Agent in its
capacity as such) that does not involve or arise from an act or omission by the
Company or its Affiliates. No Indemnitee shall be liable for any damages
arising from the use by others of any information or other materials obtained
through IntraLinks or other similar information transmission systems in
connection with this Agreement, nor shall any Indemnitee have any liability for
any indirect or consequential damages relating to this Agreement or any other
Loan Document or arising out of its activities in connection herewith or
therewith (whether before or after the Effective Date).

          (b) Reimbursement
by Lenders. To the extent that the Borrowers for any reason fail to
indefeasibly 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 Pro Rata Share (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).

          (c) All
amounts due under this Section 11.05 shall be payable within ten
Business Days after demand therefor. The agreements in this Section shall
survive the resignation of the Administrative Agent, 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.

          11.06
Payments Set Aside. To the extent that any payment by
or on behalf of any 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 set-off, and such payment or the proceeds of such
set-off or any part thereof is subsequently invalidated, declared 

89

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 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 set-off 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 or the
L/C Issuer, plus interest thereon from the date of such demand to the date such
payment is made at a rate per annum equal to the 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.

          11.07
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 Borrower 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 assignee in accordance with the provisions of paragraph (b)
of this Section, (ii) by way of participation in accordance with the
provisions of paragraph (d) of this Section or (iii) by way of pledge
or assignment of a security interest subject to the restrictions of
paragraph (f) 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 paragraph (d) of
this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

          (b) Assignments
by Lenders. Any Lender may at any time assign to one or more assignees all
or a portion of its rights and obligations under this Agreement (including all
or a portion of its Commitment and the Loans at the time owing to it); provided
that any such assignment shall be subject to the following conditions:

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i) Minimum
 Amounts.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A) 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, an Affiliate of a Lender or an Approved Fund, no minimum
 amount need be assigned; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B) in
 any case not described in paragraph (b)(i)(A) of this Section, the
 aggregate amount of the Commitment (which for this purpose includes Loans
 outstanding thereunder) or, if the applicable Commitment is not then in
 effect, the

 

90

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 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 Default or Event of Default has
 occurred and is continuing, the Company otherwise consents (each such consent
 not to be unreasonably withheld or delayed).

 
	
  

 	
  

 	
  

 
	
  

 	
           (ii) Proportionate
 Amounts. 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 Loan or the Commitment assigned;

 
	
  

 	
  

 	
  

 
	
  

 	
           (iii) Required
 Consents. No consent shall be required for any assignment except to the
 extent required by paragraph (b)(i)(B) of this Section and, in addition:

 

	
  

 	
  

 
	
  

 	
           (A) the
 consent of the Company (such consent not to be unreasonably withheld or
 delayed) shall be required unless (x) an Event of Default has occurred
 and is continuing at the time of such assignment or (y) such assignment
 is to a Lender, an Affiliate of a Lender or an Approved Fund;

 
	
  

 	
  

 
	
  

 	
           (B) the
 consent of the Administrative Agent (such consent not to be unreasonably
 withheld or delayed) shall be required for assignments in respect of the
 Facility if such assignment is to a Person that is not a Lender with a
 Commitment, an Affiliate of such Lender or an Approved Fund with respect to
 such Lender; and

 
	
  

 	
  

 
	
  

 	
           (C) the
 consents of the L/C Issuer (such consents not to be unreasonably withheld or
 delayed) shall be required for any assignment that increases the obligation
 of the assignee to participate in exposure under one or more Letters of
 Credit (whether or not then outstanding).

 

	
  

 	
  

 
	
  

 	
           (iv) Assignment
 and Assumption. The parties to each assignment shall execute and deliver
 to the Administrative Agent an Assignment and Assumption, together with a
 processing and recordation fee of $3,500 for each assignment; provided
 that (A) only one such fee will be payable in connection with simultaneous
 assignments to two or more Approved Funds by a Lender and (B) the Administrative Agent may, in its sole
 discretion, elect to waive such processing and recordation fee in the case of
 any assignment. The assignee, if it is not a Lender, shall deliver to
 the Administrative Agent an Administrative Questionnaire.

 
	
  

 	
  

 
	
  

 	
           (v) No
 Assignment to Certain Persons. No such assignment shall be made to (A)
 the Company or any of the Company’s Subsidiaries or Affiliates or (B) to any
 Defaulting Lender or any of its Subsidiaries, or any Person who, upon
 becoming a Lender hereunder, would constitute any of the foregoing Persons
 described in this clause (B. 

 

91

	
  

 	
  

 
	
  

 	
           (vi) No
 Assignment to Natural Persons. No such assignment shall be made to a
 natural person.

 
	
  

 	
  

 
	
  

 	
           (vii) Certain
 Additional Payments. In connection with any assignment of rights and
 obligations of any Defaulting Lender hereunder, no such assignment shall be
 effective unless and until, in addition to the other conditions thereto set
 forth herein, the parties to the assignment shall make such additional
 payments to the Administrative Agent in an aggregate amount sufficient, upon
 distribution thereof as appropriate (which may be outright payment, purchases
 by the assignee of participations or subparticipations, or other compensating
 actions, including funding, with the consent of the Company and the
 Administrative Agent, the applicable pro rata share of Loans
 previously requested, but not funded by, the Defaulting Lender, to each of
 which the applicable assignee and assignor hereby irrevocably consent), to
 (A) pay and satisfy in full all payment liabilities then owed by such
 Defaulting Lender to the Administrative Agent, the L/C Issuer and each other
 Lender hereunder (and interest accrued thereon), and (B) acquire (and fund as
 appropriate) its full pro rata share of all Loans and
 participations in Letters of Credit in accordance with its Pro Rata Share.
 Notwithstanding the foregoing, in the event that any assignment of rights and
 obligations of any Defaulting Lender hereunder shall become effective under
 applicable Law without compliance with the provisions of this paragraph, then
 the assignee of such interest shall be deemed to be a Defaulting Lender for
 all purposes of this Agreement until such compliance occurs.

 

Subject to
acceptance and recording thereof by the Administrative Agent pursuant to
paragraph (c) of this Section, from and after the effective date specified
in each Assignment and Assumption, the 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, 3.03, 3.04,
11.04 and 11.05 with respect to facts and circumstances occurring
prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected
parties, no assignment by a Defaulting Lender will constitute a waiver or
release of any claim of any party hereunder arising from that Lender’s having
been a Defaulting Lender. Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
paragraph 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
paragraph (d) of this Section.

          (c) Register.
The Administrative Agent, acting solely for this purpose as an agent of the
Borrowers, shall maintain at the Administrative Agent’s office or, in the case
of Wells Fargo, any of its offices in Charlotte, North Carolina, a copy of each
Assignment and Assumption and each Lender Joinder Agreement delivered to it and
a register for the recordation of the names and addresses of the Lenders, and
the Commitment of, and principal amounts of the Loans owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”). The
entries in the 

92

Register shall be conclusive, absent manifest error, and the Borrowers,
the Administrative Agent and the Lenders shall 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 any Borrower and any Lender (but
only to the extent of entries in the Register that are applicable to such Lender),
at any reasonable time and from time to time upon reasonable prior notice.

          (d) Participations.
Any Lender may at any time, without the consent of, or notice to, any Borrower
or the Administrative Agent, sell participations to any Person (other than a
natural person or the Company or any of the Company’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 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 Company, the
Administrative Agent, L/C Issuer and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement. For the avoidance of doubt, each Lender
shall be responsible for the indemnity under Section 11.05 with respect
to any payments made by such Lender to its Participant(s).

          Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver or modification described in Section
11.01 that directly affects such Participant and could not be effected by a
vote of the Required Lenders. Each Borrower agrees that each Participant shall
be entitled to the benefits of Sections 3.01, 3.03 and 3.04
(subject to the requirements and limitations therein, including the
requirements of Section 3.01(f) (it being understood that the documentation
required under Section 3.01(f) shall be delivered to the participating
Lender)) to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section
11.15 as if it were an assignee under paragraph (b) of this Section and (B)
shall not be entitled to receive any greater payment under Sections 3.01
and 3.03, with respect to such participation, than its participating
Lender would have been entitled to receive, except to the extent such
entitlement to receive a greater payment results from a Change in Law that
occurs after the Participant acquired the applicable participation. Each Lender that
sells a participation agrees, at the Company’s request and expense, to use
reasonable efforts to cooperate with the Company to effectuate the provisions
of Section 11.15 with respect to any Participant. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section
11.09 as though it were a Lender; provided that such Participant
agrees to be subject to Section 2.14 as though it were a Lender. 

          (e) Participant
Register. Each Lender that sells a participation shall, acting solely for
this purpose as a non-fiduciary agent of the Borrowers, maintain a register on
which it enters the name and address of each Participant and the principal
amounts (and stated interest) of each Participant’s interest in the Loans or
other obligations under the Loan Documents (the “Participant Register”);
provided that no Lender shall have any obligation to disclose all or any

93

portion of the Participant Register (including the identity of any
Participant or any information relating to a Participant’s interest in any
commitments, loans, letters of credit or its other obligations under any Loan
Document) to any Person except to the extent that such disclosure is necessary
to establish that such commitment, loan, letter of credit or other obligation
is in registered form under Section 5f.103-1(c) of the United States Treasury
Regulations. The entries in the Participant Register shall be conclusive absent
manifest error, and such Lender shall treat each Person whose name is recorded
in the Participant Register as the owner of such participation for all purposes
of this Agreement notwithstanding any notice to the contrary. For the avoidance
of doubt, the Administrative Agent (in its capacity as Administrative Agent)
shall have no responsibility for maintaining a Participant Register.

          (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 to secure obligations of
such Lender, including without limitation 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.

          11.08
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 its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and representatives (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) if necessary 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 Company 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 the Administrative Agent, any Lender, the L/C Issuer
or any of their respective Affiliates on a nonconfidential basis from a source
other than the Company. For purposes of this Section, “Information”
means all information received from any Loan Party relating to any Loan Party
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 any Loan Party, provided
that, in the case of information received from any Loan Party after the date
hereof, such information is clearly identified at the time of delivery as
confidential. 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 

94

to maintain the confidentiality of such Information as such Person
would accord to its own confidential information.

          11.09
Set-off. In addition to any right or remedy of the
Lenders provided by law, if an Event of Default exists, each Lender is
authorized at any time and from time to time, without prior notice to any
Borrower or any other Loan Party, any such notice being waived by each Borrower
(on its own behalf and on behalf of each Loan Party) to the fullest extent
permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held by, and other
indebtedness at any time owing by, such Lender to or for the credit or the
account of the respective Loan Parties against any and all Obligations owing to
such Lender hereunder or under any other Loan Document, now or hereafter
existing, irrespective of whether or not the Administrative Agent or such
Lender shall have made demand under this Agreement or any other Loan Document
and although such Obligations may be contingent or unmatured or denominated in
a currency different from that of the applicable deposit or indebtedness. Each
Lender agrees promptly to notify the Company and the Administrative Agent after
any such set-off and application made by such Lender; provided that the
failure to give such notice shall not affect the validity of such set-off and
application.

          11.10
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 applicable
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.

          11.11
Counterparts; Effectiveness. This Agreement may be
executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument. 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 other electronic transmission) shall be effective as
delivery of a manually executed counterpart of this Agreement.

          11.12
Integration. This Agreement, together with the other
Loan Documents, constitutes the complete and integrated agreement of the
parties on the subject matter hereof and thereof and supersedes all prior
agreements, written or oral, on such subject matter. In the event of any
conflict between the provisions of this Agreement and those of any other Loan
Document, the provisions of this Agreement shall control; provided that
the inclusion of supplemental rights or remedies in favor of the Administrative
Agent or the Lenders in any other Loan Document shall not be deemed a conflict
with this Agreement. Each Loan Document was drafted with the

95

joint participation of the respective parties thereto and shall be
construed neither against nor in favor of any party, but rather in accordance
with the fair meaning thereof.

          11.13
Survival of Representations and Warranties. All
representations and warranties made hereunder and in each other Loan Document
or other document delivered pursuant hereto or thereto or in connection
herewith or therewith shall survive the 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.

          11.14
Severability. If any provision of this Agreement or
any other Loan Document 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.

          11.15
Replacement of Lenders. If (a) any Lender requests
compensation under Section 3.03, (b) any Lender’s obligation to
make, fund or maintain LIBOR Rate Loans is suspended under Section 3.02,
(c) any 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,
(d) any Lender fails to consent to any amendment, waiver or other modification
to this Agreement or any other Loan Document requested pursuant to Section 11.01
(so long as such amendment, waiver or other modification has been consented to
by the Required Lenders), (e) any Lender is a Defaulting Lender or
(f) any other circumstance exists hereunder that gives the Company the right to
replace a Lender as a party hereto, then the Company 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
Company shall have paid (or caused a Borrowing Subsidiary to pay) to the
Administrative Agent the assignment fee specified in Section 10.06(b);

          (b) such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Loan
Documents (including any amounts under Section 3.04) from the
assignee (to the extent of such outstanding principal and accrued

96

interest and fees) or the Company or applicable Borrowing Subsidiary
(in the case of all other amounts);

          (c) in the
case of any such assignment resulting from a claim for compensation under Section 3.03
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 or otherwise, the circumstances
entitling the Company to require such assignment and delegation cease to apply.

          11.16
Automatic Debits of Fees. With respect to any
interest, facility fee, letter of credit fee or other fee due and payable to
the Administrative Agent, the L/C Issuer, or any Arranger under the Loan
Documents, each Borrower hereby irrevocably authorizes Wells Fargo to debit any
deposit account of such Borrower with Wells Fargo in an amount such that the
aggregate amount debited from all such deposit accounts does not exceed such
fee or other cost or expense. If there are insufficient funds in such deposit
accounts to cover the amount of the interest or fees then due, such debits will
be reversed (in whole or in part, in Wells Fargo’s sole discretion) and such
amount not debited shall be deemed to be unpaid. Wells Fargo agrees to use
commercially reasonable efforts to notify the Company prior to any such debit.
No such debit under this Section shall be deemed a set-off.

          11.17
Governing Law.

          (a) THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND
EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

          (b) ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE
BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, THE COMPANY, EACH BORROWING SUBSIDIARY, THE ADMINISTRATIVE AGENT,
THE L/C ISSUER AND EACH LENDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE COMPANY, EACH
BORROWING SUBSIDIARY, THE ADMINISTRATIVE AGENT, THE L/C ISSUER AND EACH LENDER
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION
IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. THE COMPANY,
EACH BORROWING

97

SUBSIDIARY, THE ADMINISTRATIVE AGENT, THE L/C ISSUER AND EACH LENDER
WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY
BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

          (c) Waiver of
Right to Trial by Jury. 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.

          11.18
No Advisory or Fiduciary Responsibility. In connection
with all aspects of the transactions contemplated by this Agreement (including
in connection with any amendment, waiver or other modification hereof), the
Borrowers acknowledge and agree that (a) the arranging and other services
provided by the Arrangers and the Administrative Agent are arm’s-length
commercial transactions between the Borrowers, on the one hand, and the
Arrangers and the Administrative Agent, on the other hand; (b) the Borrowers
have consulted their own legal, accounting, regulatory and tax advisors to the
extent they have deemed appropriate; (c) the Borrowers are capable of
evaluating, and understand and accept, the terms, risks and conditions of the
transactions contemplated hereby; (d) the Arrangers and the Administrative
Agent are and have been acting solely as principals and, except as expressly
agreed in writing by the relevant parties, have not been, are not, and will not
be acting as advisors, agents or fiduciaries for the Company or any of its
Affiliates; (e) neither the Arrangers nor the Administrative Agent has any
obligation to any Borrower with respect to the transactions contemplated hereby
except those obligations expressly set forth herein; and (f) the Arrangers, the
Administrative Agent and their Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Borrowers and
their Affiliates, and neither the Arrangers nor the Administrative Agent has
any obligation to disclose any of such interests to any Borrower. To the
fullest extent permitted by law, the Borrowers waive and release any claim that
they may have against the Arrangers or the Administrative Agent with respect to
any breach or alleged breach of agency or fiduciary duty in connection with
this Agreement or any aspect of the transactions contemplated hereby.

          11.19
USA PATRIOT Act Notice. Each Lender that is subject to
the PATRIOT Act and the Administrative Agent (for itself and not on behalf of
any Lender) hereby notifies the Loan Parties that pursuant to the requirements
of the PATRIOT Act, it is required to obtain, verify and record information
that identifies the Loan Parties, which information includes the name and
address of each Loan Party and other information that will allow such Lender or
the

98

Administrative Agent, as applicable, to identify such Loan Party in
accordance with the PATRIOT Act.

          11.20
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 any Loan Party in respect of any such sum due from it to the
Administrative Agent 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 in the Agreement Currency, the Company and each Borrowing Subsidiary
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 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 Company or the applicable Borrowing Subsidiary (or to any other Person who
may be entitled thereto under applicable Law).

99

          IN
WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date
first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DONALDSON COMPANY, INC.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ William
 M. Cook

 	
  

 
	
  

 	
 Name:
 William M. Cook

 	
  

 
	
  

 	
 Title:
 Chairman, President and Chief Executive Officer

 	
  

 

[Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WELLS
 FARGO BANK, NATIONAL

 	
  

 
	
  

 	
 ASSOCIATION,
 as Administrative
 Agent, L/C

 Issuer and a Lender

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Mark Holm

 	
  

 
	
  

 	
 Name: Mark Holm

 	
  

 
	
  

 	
 Title: Managing Director

 	
  

 

[Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 
	
  

 	
 U.S. BANK NATIONAL ASSOCIATION,

 
	
  

 	
 as
 Syndication Agent and as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Carlos
 L. Lamboglia

 
	
  

 	
 Name: Carlos
 L. Lamboglia

 
	
  

 	
 Title: Vice
 President

 

[Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 The Bank of Tokyo-Mitsubishi UFJ, Ltd., as a

 Lender

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Thomas
 Danielson

 	
  

 
	
  

 	
 Name: Thomas
 Danielson

 	
  

 
	
  

 	
 Title:
 Authorized Signatory

 	
  

 

[Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 JPMORGAN CHASE BANK, N.A., as a Lender

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Krys
 Szremski

 	
  

 
	
  

 	
 Name: Krys
 Szremski

 	
  

 
	
  

 	
 Title: Vice
 President

 	
  

 

[Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 
	
  

 	
 LLOYDS TSB BANK PLC, as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Stephen
 Giacolone

 
	
  

 	
 Name:
 Stephen Giacolone

 
	
  

 	
 Title:
 Assistant Vice President – G011

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Dennis
 McClellan

 
	
  

 	
 Name: Dennis
 McClellan

 
	
  

 	
 Title:
 Assistant Vice President – M040

 

[Signature Page to Credit Agreement]

	
  

 	
  

 	
  

 
	
  

 	
 MIZUHO CORPORATE BANK (USA),
as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ David
 Lim

 
	
  

 	
 Name: David
 Lim

 
	
  

 	
 Title:
 Senior Vice President

 

[Signature Page to Credit Agreement]

SCHEDULE 1

MANDATORY COST FORMULAE

	
  

 	
  

 	
  

 
	
 1.

 	
 The
 Mandatory Cost (to the extent applicable) is an addition to the interest rate
 to compensate Lenders for the cost of compliance with (a) the
 requirements of the Bank of England and/or the Financial Services Authority
 (or, in either case, any other authority which replaces all or any of its
 functions); or (b) the requirements of the European Central Bank.

 
	
  

 	
  

 
	
 2.

 	
 On
 the first day of each Interest Period (or as soon as practicable thereafter)
 the Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional
 Cost Rate”) for each Lender, in accordance with the paragraphs set out
 below. The Mandatory Cost will be calculated by the Administrative Agent as a
 weighted average of the Lenders’ Additional Cost Rates (weighted in
 proportion to the percentage participation of each Lender in the relevant
 Loan) and will be expressed as a percentage rate per annum. The
 Administrative Agent will, at the request of the Company or any Lender,
 deliver to the Company or such Lender as the case may be, a statement setting
 forth the calculation of any Mandatory Cost.

 
	
  

 	
  

 
	
 3.

 	
 The
 Additional Cost Rate for any Lender lending from a Lending Office in a
 Participating Member State will be the percentage notified by that Lender to
 the Administrative Agent. This percentage will be certified by such Lender in
 its notice to the Administrative Agent to be its reasonable determination of
 the cost (expressed as a percentage of such Lender’s participation in all
 Loans made from such Lending Office) of complying with the minimum reserve
 requirements of the European Central Bank in respect of Loans made from that
 Lending Office.

 
	
  

 	
  

 
	
 4.

 	
 The
 Additional Cost Rate for any Lender lending from a Lending Office in the
 United Kingdom will be calculated by the Administrative Agent as follows:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 (a) in relation to any Loan in Sterling:

 

	
  

 	
  

 	
  

 
	
  

 	
 AB+C(B-D)+E x 0.01

 	
 per
 cent. per annum

 
	
  

 	
 100 - (A+C)

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 (b) in relation to any Loan in any currency other than Sterling:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 E x 0.01 per cent. per
 annum

 
	
  

 	
 Where:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 A

 	
 is the percentage of Eligible Liabilities
 (assuming these to be in excess of any stated minimum) which that Lender is
 from time to time required to maintain as an interest free cash ratio deposit
 with the Bank of England to comply with cash ratio requirements.

 

1

	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 B

 	
 is the percentage rate of interest (excluding
 the Applicable Rate, the Mandatory Cost and any interest charged on overdue
 amounts pursuant to the first sentence of Section 2.9(b) and, in
 the case of interest (other than on overdue amounts) charged at the Default
 Rate, without counting any increase in interest rate effected by the charging
 of the Default Rate) payable for the relevant Interest Period of such Loan.

 
	
  

 	
  

 	
  

 
	
  

 	
 C

 	
 is the percentage (if any) of Eligible
 Liabilities which that Lender is required from time to time to maintain as
 interest bearing Special Deposits with the Bank of England.

 
	
  

 	
  

 	
  

 
	
  

 	
 D

 	
 is the percentage rate per annum payable by
 the Bank of England to the Administrative Agent on interest bearing Special
 Deposits.

 
	
  

 	
  

 	
  

 
	
  

 	
 E

 	
 is designed to compensate Lenders for amounts
 payable under the Fees Rules and is calculated by the Administrative Agent as
 being the average of the most recent rates of charge supplied by the Lenders
 to the Administrative Agent pursuant to paragraph 7 below and
 expressed in pounds per £1,000,000.

 
	
  

 	
  

 	
  

 
	
 5.

 	
 For
 the purposes of this Schedule:

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii) “Eligible Liabilities” and “Special Deposits” have the meanings
 given to them from time to time under or pursuant to the Bank of England Act
 1998 or (as may be appropriate) by the Bank of England;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv) “Fees Rules” means the rules on periodic fees contained in the
 Financial Services Authority Fees Manual or such other law or regulation as
 may be in force from time to time in respect of the payment of fees for the
 acceptance of deposits;

 
	
  

 	
  

 	
  

 
	
  

 	
 (v) “Fee Tariffs” means the fee tariffs specified in the Fees Rules
 under the activity group A.1 Deposit acceptors (ignoring any minimum fee or
 zero rated fee required pursuant to the Fees Rules but taking into account
 any applicable discount rate); and

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi) “Tariff Base” has the meaning given to it in, and will be
 calculated in accordance with, the Fees Rules.

 
	
  

 	
  

 	
  

 
	
 6.

 	
 In
 application of the above formulae, A, B, C and D will be included in the
 formulae as percentages (i.e. 5 per cent. will be included in the formula as
 5 and not as 0.05). A negative result obtained by subtracting D from B shall
 be taken as zero. The resulting figures shall be rounded to four decimal
 places.

 
	
  

 	
  

 	
  

 
	
 7.

 	
 If
 requested by the Administrative Agent or the Company, each Lender with a
 Lending Office in the United Kingdom or a Participating Member State shall,
 as soon as practicable after publication by the Financial Services Authority,
 supply to the Administrative Agent and the Company, the rate of charge
 payable by such Lender to the Financial Services Authority pursuant to the
 Fees Rules in respect of the relevant financial year of the Financial
 Services Authority (calculated for this purpose by such 

 

2

	
  

 	
  

 	
  

 
	
  

 	
 Lender as being the
 average of the Fee Tariffs applicable to such Lender for that financial year)
 and expressed in pounds per £1,000,000 of the Tariff Base of such Lender.

 
	
  

 	
  

 
	
 8.

 	
 Each
 Lender shall supply any information required by the Administrative Agent for
 the purpose of calculating its Additional Cost Rate. In particular, but
 without limitation, each Lender shall supply the following information in
 writing on or prior to the date on which it becomes a Lender:

 
	
  

 	
  

 
	
  

 	
 (vii) (a)
 its jurisdiction of incorporation and the jurisdiction of the Lending Office
 out of which it is making available its participation in the relevant Loan;
 and

 
	
  

 	
  

 	
  

 
	
  

 	
           (viii)
 (b) any other information that the Administrative Agent may reasonably
 require for such purpose.

 
	
  

 	
  

 	
  

 
	
  

 	
 Each Lender shall promptly notify the Administrative Agent in writing
 of any change to the information provided by it pursuant to this paragraph.

 
	
  

 	
  

 
	
 9.

 	
 The
 percentages or rates of charge of each Lender for the purpose of A, C and E
 above shall be determined by the Administrative Agent based upon the
 information supplied to it pursuant to paragraphs 7 and 8 above
 and on the assumption that, unless a Lender notifies the Administrative Agent
 to the contrary, each Lender’s obligations in relation to cash ratio deposits,
 Special Deposits and the Fees Regulations are the same as those of a typical
 bank from its jurisdiction of incorporation with a Lending Office in the same
 jurisdiction as such Lender’s Lending Office.

 
	
  

 	
  

 
	
 10.

 	
 The
 Administrative Agent shall have no liability to any person if such
 determination results in an Additional Cost Rate which over- or
 under-compensates any Lender and shall be entitled to assume that the
 information provided by any Lender pursuant to paragraphs 3, 7
 and 8 above is true and correct in all respects.

 
	
  

 	
  

 	
  

 
	
 11.

 	
 The
 Administrative Agent shall distribute the additional amounts received as a
 result of the Mandatory Cost to the Lenders on the basis of the Additional
 Cost Rate for each Lender based on the information provided by each Lender
 pursuant to paragraphs 3, 7 and 8 above.

 
	
  

 	
  

 	
  

 
	
 12.

 	
 Any
 determination by the Administrative Agent pursuant to this Schedule in
 relation to a formula, the Mandatory Cost, an Additional Cost Rate or any
 amount payable to a Lender shall, in the absence of manifest error, be
 conclusive and binding on all parties hereto.

 

13.
The Administrative Agent may from time to time, after consultation with the
Company and the Lenders, determine and notify to all parties any amendments
which are required to be made to this Schedule in order to comply with any
change in law, regulation or any requirements from time to time imposed by the
Bank of England, the Financial Services Authority or the European Central Bank
(or, in any case, any other authority which replaces all or any of its
functions) and any such determination shall, in the absence of manifest error,
be conclusive and binding on all parties hereto.

3

SCHEDULE 2.01

COMMITMENTS

AND PRO RATA SHARES

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Lender

 	
  

 	
 Commitment

 	
  

 	
 Pro Rata Share

 
	
 Wells Fargo Bank, National
 Association

 	
  

 	
 $50,000,000

 	
  

 	
 20.00%

 
	
 U.S. Bank National
 Association

 	
  

 	
 $50,000,000

 	
  

 	
 20.00%

 
	
 The Bank of
 Tokyo-Mitsubishi UFJ, Ltd.

 	
  

 	
 $37,500,000

 	
  

 	
 15.00%

 
	
 JPMorgan Chase Bank, N.A.

 	
  

 	
 $37,500,000

 	
  

 	
 15.00%

 
	
 Lloyds TSB Bank plc

 	
  

 	
 $37,500,000

 	
  

 	
 15.00%

 
	
 Mizuho Corporate Bank (USA)

 	
  

 	
 $37,500,000

 	
  

 	
 15.00%

 
	
 Total

 	
  

 	
 $250,000,000

 	
  

 	
 100.00%

 

1

SCHEDULE
5.10

SUBSIDIARIES

	
  

 	
  

 	
  

 	
  

 
	
 Donaldson Capital, Inc. (Minnesota, U.S.A.)

 
	
 Aerospace Filtration Systems Inc. (Minnesota, U.S.A.)

 
	
 ASHC, Inc (Minnesota, U.S.A.)

 
	
  

 	
 Prestadora de Servicios Aguascalientes S de RL de CV” (Mexico)

 
	
 Donaldson do Brasil Equipamentos Industrias, Ltda (Brazil)

 
	
 Donaldson S.A. de C.V. (Mexico)

 
	
 Donaldson Chile, Ltda. (Chile)

 
	
 Donaldson Canada, Inc. (Canada)

 
	
 Donaldson Filtration (Thailand), Ltd. (Thailand)

 
	
 Donaldson Filtration (Phillipines) Inc. (Philippines) (dormant)

 
	
 Donaldson India Filter Systems Pvt. Ltd. (India)

 
	
 DLX Capital, Sarl (Luxembourg)

 
	
  

 	
 DLX Capital, US Branch

 
	
 Donaldson Overseas Holding Sarl (Luxembourg)

 
	
  

 	
 Donaldson Filtration Systems (Proprietary) Ltd. (South Africa)

 
	
  

 	
 Nippon Donaldson Limited (Japan)

 
	
  

 	
 Donaldson Filtration (Malaysia) sdn bhd (Malaysia)

 
	
  

 	
 Donaldson Korea Co., Ltd. (Republic of South Korea)

 
	
  

 	
 Donaldson Australasia Pty. Limited (Australia)

 
	
  

 	
 Donaldson Filtration (Asia Pacific) Pte. Ltd. (Singapore)

 
	
  

 	
 PT Donaldson Filtration Indonesia (Indonesia)

 
	
  

 	
 Donaldson Luxembourg S.a.r.l. (Luxembourg)

 
	
  

 	
  

 	
 Donaldson Iberica Soluciones de Filtracion, S.L. (Spain)

 
	
  

 	
  

 	
 Donaldson Schweiz Gmbh (Switzerland)

 
	
  

 	
  

 	
 Donaldson Polska Sp. Z.o.o. (Poland)

 
	
  

 	
  

 	
 Donaldson Filtre Sistemleri Ticaret Limited Sirketi (Turkey)

 
	
  

 	
  

 	
 Donaldson Filtration Österreich GmbH (Austria)

 
	
  

 	
  

 	
 Donaldson Filtration Slovensko sro (Slovakia)

 
	
  

 	
  

 	
 Donaldson Filtration Norway a/s (Norway)

 
	
  

 	
  

 	
 Donaldson Italia s.r.l. (Italy)

 
	
  

 	
  

 	
 Donaldson Czech Republic s.r.o. (Czech Republic)

 
	
  

 	
  

 	
 Donaldson Filtration CR - konzern sro (Czech Republic)

 
	
  

 	
  

 	
 Donaldson Industrial CR - Konzern sro (Czech Republic)

 
	
  

 	
  

 	
 Donaldson Nederland B.V. (Netherlands)

 
	
  

 	
  

 	
 Donaldson Europe, B.V.B.A. (Belgium)

 
	
  

 	
  

 	
  

 	
 Donaldson België BVBA (Belgium)

 
	
  

 	
  

 	
 Donaldson Filtration Deutschland GmhH (Germany)

 
	
  

 	
  

 	
  

 	
 ultratroc gmbh (Germany)

 
	
  

 	
  

 	
  

 	
 Donaldson Filtration Magyarorszag kft (Hungary)

 
	
  

 	
  

 	
 Donaldson France, S.A.S. (France)

 
	
  

 	
  

 	
  

 	
 ultrafilter sas. (France)

 
	
  

 	
  

 	
  

 	
 Donaldson, S.A.S. (France)

 
	
  

 	
  

 	
  

 	
 Le Bozec Filtration et Systemes sas (France)

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Donaldson Scandinavia APS (Denmark)

 
	
  

 	
  

 	
  

 	
 Donaldson Scandinavia Aps - Swedish Branch (Sweden)

 
	
  

 	
  

 	
  

 	
 Donaldson Scandinavia AS - Finnish Branch (Finland)

 
	
  

 	
  

 	
 Donaldson Far East Limited (Hong Kong)

 
	
  

 	
  

 	
  

 	
 Donaldson (Wuxi) Filters Co., Ltd. (China)

 
	
  

 	
  

 	
  

 	
 Donaldson (Thailand) Ltd (Thailand)

 
	
  

 	
  

 	
  

 	
 Donaldson (Xuzhou) Filters Co. Ltd (China)

 
	
  

 	
  

 	
 Donaldson Taiwan Ltd (Taiwan)

 
	
  

 	
  

 	
 Donaldson UK Holdings Ltd (United Kingdom)

 
	
  

 	
  

 	
  

 	
 Donaldson Filtration (GB) Ltd. (United Kingdom)

 
	
  

 	
  

 	
  

 	
 Donaldson Filter Components Limited (United Kingdom)

 
	
  

 	
  

 	
  

 	
 DCE Group Ltd. (United Kingdom) (dormant)

 
	
  

 	
  

 	
  

 	
 ultrafilter ltd. (United Kingdom) (dormant)

 
	
  

 	
  

 	
  

 	
 Tetratec Europe Limited (United Kingdom) (dormant)

 
	
  

 	
  

 	
  

 	
 DCE Donaldson Ltd (United Kingdom) (dormant)

 
	
  

 	
  

 	
  

 	
 DFCH Ltd (United Kingdom) (dormant)

 
	
  

 	
  

 	
  

 	
 DCE Ltd. (United Kingdom) (dormant)

 

SCHEDULE 7.01

EXISTING LIENS

	
  

 	
  

 
	
 Various
 capitalized leases in the US

 	
 $637,437

 
	
  

 	
  

 
	
 Various capitalized
 leases in Japan and Brazil (usd equivalent)

 	
 $51,800

 

SCHEDULE 7.03

EXISTING INVESTMENTS

	
  

 	
  

 
	
 Investment
 in Advanced Filtration Systems Inc.

 	
 $12,153,000

 
	
  

 	
  

 
	
 Investment
 in PT Panata Jaya Mandiri

 	
 $6,455,426

 
	
  

 	
  

 
	
 Investment
 in Rashed al-Rashed & Sons-Donaldson Ltd.

 	
 $2,721,310

 
	
  

 	
  

 
	
 Investment
 in Applied Membrane Technology Inc.

 	
 $225,094

 

SCHEDULE 11.02

ADMINISTRATIVE AGENT’S OFFICE,

CERTAIN ADDRESSES FOR NOTICES

	
  

 
	
 COMPANY
 (AND EACH OTHER BORROWER):

 
	
  

 
	
 Donaldson Company, Inc.

 
	
 1400 West 94th
 Street

 
	
 P.O. Box 129

 
	
 Minneapolis, Minnesota
 55431

 
	
 Attention: General Counsel

 
	
 Telephone: (952) 887-3753

 
	
 Facsimile: (952) 887-3005

 
	
 Electronic Mail:
 rsheffer@mail.donaldson.com

 
	
 Website Address:
 www.donaldson.com

 
	
  

 
	
 ADMINISTRATIVE
 AGENT:

 
	
  

 
	
 Administrative
Agent’s Office 

 
	
 (for
payments and Requests for Credit Extensions): 

 
	
  

 
	
 Wells Fargo
 Bank, National Association

 
	
 Attention:
 Agency Services

 
	
 1525 West
 W.T. Harris Blvd.

 
	
 Charlotte,
 North Carolina 28262

 
	
 Facsimile:
 (704) 715-0017

 
	
 Electronic
 Mail: agencyservices.requests@wellsfargo.com

 
	
  

 
	
 L/C ISSUER:

 
	
  

 
	
 Wells Fargo
 Bank, National Association

 
	
 Attention:
 Agency Services

 
	
 1525 West
 W.T. Harris Blvd.

 
	
 Charlotte,
 North Carolina 28262

 
	
 Facsimile:
 (704) 715-0017

 
	
 Electronic
 Mail: agencyservices.requests@wellsfargo.com

 

EXHIBIT A

FORM OF

BORROWING NOTICE

Date: ___________, 201_

To:       Wells
Fargo Bank, National Association, as Administrative Agent

Ladies and Gentlemen:

          The
undersigned, [name of Borrower] (the “Borrower”), refers to the Credit
Agreement dated as of December 7, 2012 (as amended or otherwise modified from
time to time, the “Credit Agreement”) among Donaldson Company, Inc.,
various subsidiaries thereof, various financial institutions and Wells Fargo
Bank, National Association, as Administrative Agent. Terms used but not
otherwise defined herein are used herein as defined in the Credit Agreement.
The Borrower hereby irrevocably gives you notice pursuant to Section 2.02
of the Credit Agreement of the Borrowing specified herein:

	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 The date of
 the proposed Borrowing is ___________, 201__.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 The
 aggregate principal amount of the proposed Borrowing is a Dollar Equivalent
 of $_____________.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 The Type of
 the Loans shall be ______.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 The
 Applicable Currency for the Loans shall be _______.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 [Include For
 LIBOR Rate Loans: The duration of the Interest Period for the requested LIBOR
 Rate Loans shall be ____ months.]

 

          The
Borrowing requested herein complies with the proviso to the first
sentence of Section 2.01 of the Credit Agreement.

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 [BORROWER]

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 

EXHIBIT B

FORM OF

NOTICE OF CONVERSION/CONTINUATION

Date:
___________, 201_

To:       Wells
Fargo Bank, National Association, as Administrative Agent

Ladies and Gentlemen:

          The
undersigned, [Name of Borrower] (the “Borrower”), refers to the Credit
Agreement dated as of December 7, 2012 (as amended or otherwise modified from
time to time, the “Credit Agreement”) among Donaldson Company, Inc.,
various subsidiaries thereof, various financial institutions and Wells Fargo
Bank, National Association, as Administrative Agent. Terms used but not
otherwise defined herein are used herein as defined in the Credit Agreement.
The Borrower hereby irrevocably gives you notice pursuant to Section 2.03
of the Credit Agreement of the [conversion/continuation] of the Offshore Rate
Loans specified herein:

	
  

 	
  

 	
  

 
	
  

 	
 1.

 	
 The Conversion/Continuation Date is _______________, 201__.

 
	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 The aggregate amount of Loans to be [converted/continued] is a Dollar
 Equivalent of $____________.

 
	
  

 	
  

 	
  

 
	
  

 	
 3.

 	
 The Applicable Currency for the Offshore Rate Loans to be
 [converted/continued] is _______.

 
	
  

 	
  

 	
  

 
	
  

 	
 4.

 	
 Such Loans are to be [converted into] [continued as][Base Rate][LIBOR
 Rate] Loans.

 
	
  

 	
  

 	
  

 
	
  

 	
 5.

 	
 [If applicable:] The duration of the Interest Period for the LIBOR
 Rate Loans to be [converted into] [continued] shall be ________ months.

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 [BORROWER]

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 

EXHIBIT C

FORM OF NOTE

          FOR
VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay
to _____________________ or registered assigns (the “Lender”), in
accordance with the provisions of the Agreement (as hereinafter defined), the
principal amount of each Loan from time to time made by the Lender to the
Borrower under the Credit Agreement, dated as of December 7, 2012 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among Donaldson Company, Inc., various Borrowing
Subsidiaries, the Lenders from time to time party thereto, and Wells Fargo
Bank, National Association, as Administrative Agent and L/C Issuer.

          The
Borrower promises to pay interest on the unpaid principal amount of each Loan
from the date of such Loan until such principal amount is paid in full, at such
interest rates and at such times as are specified in the Agreement. All
payments of principal and interest shall be made to the Administrative Agent for
the account of the Lender in Dollars in Same Day Funds at the Administrative
Agent’s Office. If any amount is not paid in full when due hereunder, such
unpaid amount shall bear interest, to be paid upon demand, from the due date
thereof until the date of actual payment (and before as well as after judgment)
computed at the per annum rate set forth in the Agreement.

          This
Note is one of the Notes referred to in the Agreement, is entitled to the
benefits thereof and may be prepaid in whole or in part subject to the terms
and conditions provided therein. This Note is also entitled to the benefits of
certain guaranties. Upon the occurrence and continuation of one or more of the
Events of Default specified in the Agreement, all amounts then remaining unpaid
on this Note shall become, or may be declared to be, immediately due and
payable, all as provided in the Agreement. Loans made by the Lender shall be
evidenced by one or more loan accounts or records maintained by the Lender in
the ordinary course of business. The Lender may also attach schedules to this
Note and endorse thereon the date, amount and maturity of its Loans and
payments with respect thereto.

          The
Borrower, for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and
non-payment of this Note.

          THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY
WITHIN SUCH STATE.

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 [NAME OF BORROWER]

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 

LOANS AND PAYMENTS WITH RESPECT THERETO

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
Date 

 	
Type of Loan

Made 

 	
Applicable

Currency and

Amount of

Loan Made 

 	
End of Interest

Period 

 	
Amount of

Principal or

Interest Paid

This Date 

 	
Outstanding

Principal

Balance This

Date 

 	
Notation

Made By 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

Financial
Statement Date: ____________ __, 201_

To:       
Wells Fargo Bank, National Association, as Administrative Agent

Ladies and Gentlemen:

          Reference
is made to the Credit Agreement, dated as of December 7, 2012 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement”; the terms defined therein being used herein as
therein defined), among Donaldson Company, Inc., a Delaware corporation (the “Company”),
various subsidiaries thereof, the Lenders from time to time party thereto, and
Wells Fargo Bank, National Association, as Administrative Agent and L/C Issuer.

          The
undersigned Responsible Officer hereby certifies as of the date hereof that
he/she is the __________________________________________ of the Company, and
that, as such, he/she is authorized to execute and deliver this Certificate to
the Administrative Agent on the behalf of the Company, and that:

          [Use
following paragraph 1 for fiscal year-end financial statements]  

          1.
Attached hereto as Schedule 1 are the year-end audited financial
statements required by Section 6.01(a) of the Agreement for the
fiscal year of the Company ended as of the above date, together with the report
and opinion of an independent certified public accountant required by such
section.

          [Use
following paragraph 1 for fiscal
quarter-end financial statements]  

          1.
Attached hereto as Schedule 1 are the unaudited financial statements
required by Section 6.01(b) of the Agreement for the fiscal quarter
of the Company ended as of the above date. Such financial statements fairly
present the financial condition, results of operations and cash flows of the
Company and its Subsidiaries in accordance with GAAP as at such date and for
such period, subject only to normal year-end audit adjustments and the absence
of footnotes.

          2.
The undersigned has reviewed and is familiar with the terms of the Agreement
and has made, or has caused to be made under his/her supervision, a detailed
review of the transactions and condition (financial or otherwise) of the
Company during the accounting period covered by the attached financial
statements.

          3.
A review of the activities of the Company during such fiscal period has been
made under the supervision of the undersigned with a view to determining
whether during such fiscal period the Company performed and observed all its
Obligations under the Loan Documents, and

 [select one:]

          [to
the best knowledge of the undersigned during such fiscal period, no Default
exists and is continuing.]

--or--

          [the
following is a list of each such Default and its nature and status:]

          4.
The financial covenant analyses and information set forth on Schedule 2
attached hereto are true and accurate on and as of the date of this
Certificate.

          IN
WITNESS WHEREOF, the undersigned has executed this Certificate as of
__________________, 201_.

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DONALDSON COMPANY, INC.

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 

          For the
Quarter/Year ended ___________________, 201_(“Statement Date”)

SCHEDULE 2
to the Compliance Certificate

($ in 000’s)

	
  

 	
  

 	
  

 	
  

 
	
 I.

 	
 Section 7.05(a)
 – Consolidated Interest Coverage Ratio.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Consolidated
 EBITDA for four consecutive fiscal quarters ending on above date (“Subject
 Period”):

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.

 	
 Consolidated Net Income
 for Subject
 Period:          $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.

 	
 Consolidated Interest
 Charges for Subject Period:   $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.

 	
 Provision for income taxes
 for Subject Period:        $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 4.

 	
 Depreciation expenses for
 Subject Period:       $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 5.

 	
 Amortization expenses for
 intangibles for Subject Period:     $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 6.

 	
 Non-cash
 stock compensation expenses for Subject Period:   $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 7.

 	
 Other
 non-cash charges:          $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 8.

 	
 (Non-cash
 gains):          $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 9.

 	
 Consolidated EBITDA (Lines
 I.A.1 + 2 + 3 + 4 +
 5+6+7-8):          $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Consolidated
 Interest Charges for Subject
 Period:        $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Consolidated
 Interest Coverage Ratio (Line I.A.9 ÷
 

 
	
  

 	
  

 	
 Line
 I.B):                      to
 1.0

 
	
  

 	
  

 	
  

 	
  

 
	
 Minimum required: 3.5:1.0 

 
	
  

 	
  

 	
  

 	
  

 
	
 II.

 	
 Section 7.05(b)
 – Leverage Ratio.

 
	
  

 	
  

 
	
  

 	
 A.

 	
 Total
 Indebtedness at Statement
 Date:          $

 
	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Consolidated
 EBITDA for Subject Period (Line I.A.9
 above):          $

 
	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Leverage
 Ratio (Ratio of Line II.A to Line
 II.B):                    to
 1.0

 
	
  

 	
  

 	
  

 	
  

 
	
 Maximum permitted: 3.0:10. 

 
	
  

 	
  

 	
  

 	
  

 
	
 III.

 	
 Section 7.09 – Priority Debt.

 
	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Priority
 Debt:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 1.

 	
 Unsecured
 Indebtedness of Subsidiaries on such date:          $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.

 	
 Indebtedness
 of the Company and its Subsidiaries secured by Liens

 permitted by Section 7.01(o):          $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.

 	
 Priority Debt (Lines
 III.A.1 + 2):    $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Consolidated
 Net Worth:          $

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Percentage
 of Consolidated Net
 Worth:          %

 
	
  

 	
  

 	
  

 	
  

 
	
 Maximum permitted: 20% of Consolidated of Net Worth. 

 

EXHIBIT E

ASSIGNMENT AND ASSUMPTION

          This
Assignment and Assumption (this “Assignment and Assumption”) is dated as
of the Effective Date set forth below and is entered into by and between
[Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee]
(the “Assignee”). Capitalized terms used but not defined herein shall
have the meanings given to them in the Credit Agreement identified below (the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a
part of this Assignment and Assumption as if set forth herein in full.  

          For
an agreed consideration, the Assignor hereby irrevocably sells and assigns to
the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with the Standard Terms and
Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor’s rights and
obligations as a Lender under the Credit Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of
the Assignor under the respective facilities identified below (including,
without limitation, Letters of Credit included in such facilities) and (ii) to
the extent permitted to be assigned under applicable law, all claims, suits,
causes of action and any other right of the Assignor (in its capacity as a
Lender) against any Person, whether known or unknown, arising under or in
connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including, but not limited to,
contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and
assigned pursuant to clause (i) above (the rights and obligations sold and
assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as, the “Assigned Interest”). Such sale and assignment is
without recourse to the Assignor and, except as expressly provided in this
Assignment and Assumption, without representation or warranty by the Assignor.

	
  

 	
  

 
	
 1.

 	
 Assignor: ______________________________

 
	
  

 	
  

 
	
 2.

 	
 Assignee: ______________________________
[and is an Affiliate/Approved Fund of [identify Lender]1] 

 
	
  

 	
  

 
	
 3.

 	
 Borrower(s): Donaldson Company, Inc.

 
	
  

 	
  

 
	
 4.

 	
 Administrative Agent: Wells Fargo Bank,
 National Association, as the administrative agent under the Credit Agreement

 
	
  

 	
  

 
	
 5.

 	
 Credit Agreement: The Credit Agreement dated
 as of December 7, 2012 among Donaldson Company, Inc., the Lenders parties
 thereto, and Wells Fargo Bank, National Association, as Administrative Agent
 and L/C Issuer.

 

	
  

 	
  

 	
  

 
	
  

  

 	
  

 
	
 1

 	
 Select as applicable.

 

	
  

 	
  

 
	
 6.

 	
 Assigned Interest:2  

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Facility
 Assigned3

 	
 Aggregate

 Amount of

 Commitment

 for all Lenders

 	
 Amount
 of

 Commitment

 Assigned

 	
 Percentage

 Assigned of

 Commitment4

 	
 CUSIP
 Number

 
	
 _____________

 	
 $________________

 	
 $________________

 	
 ______________%

 	
  

 
	
 _____________

 	
 $________________

 	
 $________________

 	
 ______________%

 	
  

 
	
 _____________

 	
 $________________

 	
 $________________

 	
 ______________%

 	
  

 

	
  

 	
  

 
	
 [7.

 	
 Trade Date:
 __________________]5

 

	
  

 	
  

 
	
 Effective
 Date: __________________, 201__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND
 WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
 THEREFOR.]

 	
  

 

          The
terms set forth in this Assignment and Assumption are hereby agreed to:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNOR

 [NAME OF ASSIGNOR]

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNEE

 [NAME OF ASSIGNEE]

 
	
  

 	
  

 
	
  

 	
 By: 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 

	
  

 	
  

 
	
  

  

 	
  

 
	
 2          Amount
 to be adjusted by the counterparties to take into account any payments or
 prepayments made between the Trade Date and the Effective Date. 

 
	
 3          Fill
 in the appropriate terminology for the types of facilities under the Credit
 Agreement that are being assigned under this Assignment (e.g. “Revolving
 Credit Commitment”, “Term Loan Commitment”, etc.). 

 
	
 4          Set
 forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all
 Lenders thereunder. 

 
	
 5          To
 be completed if the Assignor and the Assignee intend that the minimum assignment
 amount is to be determined as of the Trade Date. 

 

	
  

 	
  

 	
  

 	
  

 
	
 [Consented to and]6
 Accepted:

 
	
  

 	
  

 
	
 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as

 	
  

 
	
 Administrative Agent

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 By: 

 	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 
	
 [Consented to:]7

 	
  

 
	
  

 	
  

 
	
 DONALDSON COMPANY, INC.

 	
  

 
	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 

	
  

 	
  

 
	
  

 	
  

 
	
 6          To
 be added only if the consent of the Administrative Agent is required by the
 terms of the Credit Agreement. 

 
	
 7          To
 be added only if the consent of the Company and/or other parties (e.g. L/C
 Issuer) is required by the terms of the Credit Agreement. 

 

ANNEX 1 TO
ASSIGNMENT AND ASSUMPTION

[___________________]8

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

                    1.
Representations and Warranties.

          (b) Assignor.
The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free
and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and Assumption and to consummate the transactions contemplated
hereby; and (b) assumes no responsibility with respect to (i) any statements,
warranties or representations made in or in connection with the Credit
Agreement or any other Loan Document, (ii) the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or any
collateral thereunder, (iii) the financial condition of the Company, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan
Document or (iv) the performance or observance by the Company, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

          (c) Assignee.
The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it meets all
requirements of an assignee under the Credit Agreement (subject to receipt of
such consents as may be required under the Credit Agreement), (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest,
shall have the obligations of a Lender thereunder, (iv) it has received a copy
of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 6.01 thereof, as applicable, and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Assignment and Assumption
and to purchase the Assigned Interest on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative
Agent or any other Lender, and (v) if it is a Foreign Lender, attached hereto
is any documentation required to be delivered by it pursuant to the terms of
the Credit Agreement, duly completed and executed by the Assignee; and (b)
agrees that (i) it will, independently and without reliance on the
Administrative Agent, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Loan
Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be
performed by it as a Lender.

	
  

 	
  

 
	 

 	
  

 
	
 8
 Describe Credit Agreement at option of Administrative Agent.

 

                    2.
Payments. From and after the Effective Date, the Administrative Agent
shall make all payments in respect of the Assigned Interest (including payments
of principal, interest, fees and other amounts) to the Assignor for amounts
which have accrued to but excluding the Effective Date and to the Assignee for
amounts which have accrued from and after the Effective Date.

                    3.
General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument.
Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy or other electronic transmission shall be effective as delivery
of a manually executed counterpart of this Assignment and Assumption. This
Assignment and Assumption shall be governed by, and construed in accordance
with, the law of the State of New York.

EXHIBIT F

FORM OF GUARANTY

          THIS
GUARANTY (this “Guaranty”) dated as of December 7, 2012 is executed by
DONALDSON CAPITAL, INC., a Minnesota corporation (the “Guarantor”) in
favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (as
defined below), the L/C Issuer (as defined below) and the Lenders (as defined
below).

W I T
N E S S E T H:

          WHEREAS,
Donaldson Company, Inc. (the “Company”), various subsidiaries of the
Company (the “Borrowing Subsidiaries”, and collectively with the
Company, the “Borrowers”), various financial institutions (together with
their respective successors and assigns, the “Lenders”) and Wells Fargo
Bank, National Association, as letter of credit issuer (in such capacity, the “L/C
Issuer”) and as administrative agent (in such capacity, the “Administrative
Agent”) are entering into a Credit Agreement dated as of the date hereof
(as amended, restated or otherwise modified from time to time, the “Credit
Agreement”; capitalized terms used but not defined herein have the
respective meanings ascribed thereto in the Credit Agreement) whereunder the
Lenders agreed to make revolving loans and issue letters of credit; and

          WHEREAS,
as a condition precedent to the Effective Date of the Credit Agreement, the
Guarantor is required to execute and deliver this Guaranty; and

          WHEREAS,
the Guarantor will benefit from the making of loans and the issuance of letters
of credit pursuant to the Credit Agreement and is willing to guarantee the
Liabilities (as defined below) as hereinafter set forth;

          NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Guarantor agrees as follows:

          The
Guarantor hereby unconditionally and irrevocably, as primary obligor and not
merely as surety, guarantees the full and prompt payment when due, whether by
acceleration or otherwise, and at all times thereafter, of all obligations of
each Borrower (whether now existing or hereafter designated as such), howsoever
created, arising or evidenced, whether direct or indirect, absolute or
contingent, now or hereafter existing, or due or to become due, which arise out
of or in connection with the Credit Agreement or any other Loan Document, as
the same may be amended, modified, extended or renewed from time to time, and
all reasonable costs and expenses paid or incurred by the Administrative Agent
or any Lender in enforcing this Guaranty or any other applicable Loan Document
against the Guarantor (all such obligations being herein collectively called
the “Liabilities”); provided that the liability of the Guarantor
hereunder shall be limited to the maximum amount of the Liabilities which the
Guarantor may guaranty without rendering the obligations of the Guarantor
hereunder void or voidable under any fraudulent conveyance or fraudulent
transfer law. For the avoidance of doubt, as used herein, the term “Borrower”
shall include the Company and each Borrowing Subsidiary designated from time to
time pursuant to Section 2.15 of the Credit Agreement.

          The
Guarantor agrees that, in the event of the occurrence of any Event of Default
under Section 8.01(f) or (g) of the Credit Agreement with
respect to any Borrower, and if such event shall occur at a time when any of
the Liabilities may not then be due and payable, the Guarantor will pay to the
Administrative Agent for the account of the Lenders forthwith the full amount
which would be payable hereunder by such undersigned if all Liabilities were
then due and payable.

          To
secure all obligations of the Guarantor hereunder, the Administrative Agent and
each Lender shall have a lien on and security interest in (and may, without
demand or notice of any kind, at any time and from time to time when any amount
shall be due and payable by the Guarantor hereunder, appropriate and apply
toward the payment of such amount, in such order of application as the
Administrative Agent or the Lenders may elect) any and all balances, credits,
deposits, accounts or moneys of or in the name of the Guarantor now or
hereafter with the Administrative Agent or such Lender and any and all property
of every kind or description of or in the name of the Guarantor now or
hereafter, for any reason or purpose whatsoever, in the possession or control
of, or in transit to, the Administrative Agent or such Lender or any agent or
bailee for the Administrative Agent or such Lender.

          This
Guaranty shall in all respects be a continuing, irrevocable, absolute and
unconditional guaranty of payment and performance and not merely a guaranty of
collectibility, and shall remain in full force and effect (notwithstanding,
without limitation, the dissolution of any of the undersigned, that at any time
or from time to time no Liabilities are outstanding or any other circumstance)
until all Commitments have terminated and all Liabilities have been paid in
full.

          The
Guarantor further agree that if at any time all or any part of any payment
theretofore applied by the Administrative Agent or any Lender to any of the
Liabilities is or must be rescinded or returned by the Administrative Agent or
such Lender for any reason whatsoever (including, without limitation, the
insolvency, bankruptcy or reorganization of any Borrower or any of the undersigned),
such Liabilities shall, for the purposes of this Guaranty, to the extent that
such payment is or must be rescinded or returned, be deemed to have continued
in existence, notwithstanding such application by the Administrative Agent or
such Lender, and this Guaranty shall continue to be effective or be reinstated,
as the case may be, as to such Liabilities, all as though such application by
the Administrative Agent or such Lender had not been made.

          The
Administrative Agent or any Lender may, from time to time, at its sole
discretion and without notice to the Guarantor, take any or all of the
following actions without affecting the liability of the Guarantor hereunder
(a) retain or obtain a security interest in any property to secure any of the
Liabilities or any obligation hereunder, (b) retain or obtain the primary or
secondary obligation of any obligor or obligors, in addition to the Guarantor,
with respect to any of the Liabilities, (c) extend or renew any of the
Liabilities for one or more periods (whether or not longer than the original
period), alter or exchange any of the Liabilities, or release or compromise any
obligation of any nature of any other obligor with respect to any of the
Liabilities, (d) release any security interest in, or surrender, release or
permit any substitution or exchange for, all or any part of any property
securing any of the Liabilities or any obligation hereunder, or extend or renew
for one or more periods (whether or not longer than the original period) or release,
compromise, alter or exchange any obligations of any nature of any obligor

with
respect to any such property and (e) resort to the Guarantor for payment of any
of the Liabilities when due, whether or not the Administrative Agent or such
Lender shall have resorted to any property securing any of the Liabilities or
any obligation hereunder or shall have proceeded against any other obligor
primarily or secondarily obligated with respect to any of the Liabilities.

          Any
amounts received by the Administrative Agent or any Lender from whatever source
on account of the Liabilities may be applied by it toward the payment of the
Liabilities; and, notwithstanding any payment made by or for the account of the
Guarantor pursuant to this Guaranty, the Guarantor shall not be subrogated to
any rights of the Administrative Agent or any Lender until such time as this
Guaranty shall have been discontinued and the Administrative Agent and the
Lenders shall have received payment of the full amount of all Liabilities.

          The
Guarantor hereby expressly waives (a) notice of the acceptance by the
Administrative Agent or any Lender of this Guaranty, (b) notice of the
existence or creation or non-payment of all or any of the Liabilities, (c)
presentment, demand, notice of dishonor, protest, and all other notices
whatsoever and (d) all diligence in collection or protection of or realization
upon any Liabilities or any security for or guaranty of any Liabilities.

          The
creation or existence from time to time of additional Liabilities to the
Administrative Agent or any Lender or any of them is hereby authorized, without
notice to the Guarantor, and shall in no way affect or impair the rights of the
Administrative Agent or any Lender or the obligations of the Guarantor under
this Guaranty.

          The
Administrative Agent and any Lender may from time to time, without notice to
the Guarantor, assign or transfer any or all of the Liabilities or any interest
therein; and, notwithstanding any such assignment or transfer or any subsequent
assignment or transfer thereof, such Liabilities shall be and remain
Liabilities for the purposes of this Guaranty, and each and every immediate and
successive assignee or transferee of any of the Liabilities or of any interest
therein shall, to the extent of the interest of such assignee or transferee in
the Liabilities, be entitled to the benefits of this Guaranty to the same
extent as if such assignee or transferee were a Lender.

          No
delay on the part of the Administrative Agent or any Lender in the exercise of
any right or remedy shall operate as a waiver thereof, and no single or partial
exercise by the Administrative Agent or any Lender of any right or remedy shall
preclude other or further exercise thereof or the exercise of any other right
or remedy; nor shall any modification or waiver of any provision of this
Guaranty be binding upon the Administrative Agent or any Lender except as
expressly set forth in a writing duly signed and delivered on behalf of the
Administrative Agent (or, if at any time there is no Administrative Agent, the
Required Lenders or, if required pursuant to Section 11.01 of the
Credit Agreement, all Lenders). No action of the Administrative Agent or any
Lender permitted hereunder shall in any way affect or impair the rights of the
Administrative Agent or any Lender or the obligations of the Guarantor under
this Guaranty. For purposes of this Guaranty, the Liabilities of any Borrower
shall include all obligations of such Borrower to the Administrative Agent or
any Lender arising under or in connection with any Loan Document,
notwithstanding any right or power of such Borrower or anyone else to assert
any claim or defense as to the invalidity or unenforceability of any

obligation,
and no such claim or defense shall affect or impair the obligations of the
Guarantor hereunder other than the defense of payment in full of the
Liabilities.

          Pursuant
to the Credit Agreement, (a) this Guaranty has been delivered to the
Administrative Agent and (b) the Administrative Agent has been authorized to
enforce this Guaranty on behalf of itself and each of the Lenders. All payments
by the Guarantor pursuant to this Guaranty shall be made to the Administrative
Agent for application as set forth in the Credit Agreement or, if there is no
Administrative Agent, to the Lenders for their ratable benefit.

          This
Guaranty shall be binding upon the Guarantor and the successors and assigns of
the Guarantor; and to the extent that any Borrower or any of the undersigned is
either a partnership, corporation, limited liability company or other entity,
all references herein to such Borrower and to such undersigned, respectively,
shall be deemed to include any successor or successors, whether immediate or
remote, to such entity. 

          This
Guaranty shall be construed in accordance with and governed by the internal
laws of the State of New York. Wherever possible each provision of this
Guaranty shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Guaranty shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Guaranty.

          This
Guaranty may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, and each such counterpart
shall be deemed to be an original but all such counterparts shall together
constitute one and the same Guaranty. 

          ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, SHALL BE
BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK OR IN
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED
THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY PROPERTY MAY BE BROUGHT, AT THE
ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH
PROPERTY MAY BE FOUND. THE GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS
TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF
ANY SUCH LITIGATION AS SET FORTH ABOVE. THE GUARANTOR FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, TO THE
ADDRESS SET FORTH UNDER ITS NAME ON THE SIGNATURE PAGE HEREOF (OR SUCH OTHER
ADDRESS AS IT SHALL HAVE SPECIFIED IN WRITING TO THE ADMINISTRATIVE AGENT AS
ITS ADDRESS FOR NOTICES HEREUNDER) OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE
STATE OF NEW YORK. THE GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION

BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM
THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

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

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

          IN
WITNESS WHEREOF, this Guaranty has been duly executed and delivered as of the
day and year first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DONALDSON
 CAPITAL, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Address:

 
	
  

 	
  

 	
  

 
	
  

 	
 c/o 

 	
 Donaldson
 Company, Inc.

 1400 West 94th Street

 Minneapolis, Minnesota 55431

 Attention: General Counsel

 Telephone: (952) 887-3753

 Facsimile: (952) 887-3005

 

EXHIBIT G-1

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax
Purposes)

                    Reference
is hereby made to the Credit Agreement dated as of December 7, 2012 (as amended
or otherwise modified from time to time, the “Credit Agreement”) among
Donaldson Company, Inc. (the “Company”), various subsidiaries thereof,
various financial institutions and Wells Fargo Bank, National Association, as
Administrative Agent. 

                    Pursuant
to the provisions of Section 3.01 of the Credit Agreement, the undersigned
hereby certifies that (i) it is the sole record and beneficial owner of the
Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it
is providing this certificate, (ii) it is not a bank within the meaning of
Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of
any Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it
is not a controlled foreign corporation related to any Borrower as described in
Section 881(c)(3)(C) of the Code.

                    The
undersigned has furnished the Administrative Agent and the Company with a
certificate of its non-U.S. Person status on IRS Form W-8BEN. By executing this
certificate, the undersigned agrees that (1) if the information provided on
this certificate changes, the undersigned shall promptly so inform the Company
and the Administrative Agent, and (2) the undersigned shall have at all times
furnished the Company and the Administrative Agent with a properly completed
and currently effective certificate in either the calendar year in which each
payment is to be made to the undersigned, or in either of the two calendar
years preceding such payments. 

                    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

	
  

 	
  

 	
  

 
	
 [NAME OF
 LENDER]

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
 Title: 

 	
  

 
	
  

 	
  

 	
  

 
	
 Date:
 ________ __, 201_

 	
  

 

EXHIBIT G-2

FORM OF U.S. TAX COMPLIANCE
CERTIFICATE

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax

Purposes)

                    Reference
is hereby made to the Credit Agreement dated as of December 7, 2012 (as amended
or otherwise modified from time to time, the “Credit Agreement”) among
Donaldson Company, Inc. (the “Company”), various subsidiaries thereof,
various financial institutions and Wells Fargo Bank, National Association, as
Administrative Agent. 

                    Pursuant
to the provisions of Section 3.01 of the Credit Agreement, the undersigned
hereby certifies that (i) it is the sole record and beneficial owner of the
participation in respect of which it is providing this certificate, (ii) it is
not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is
not a ten percent shareholder of any Borrower within the meaning of Section
871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation
related to any Borrower as described in Section 881(c)(3)(C) of the Code.

                    The
undersigned has furnished its participating Lender with a certificate of its
non-U.S. Person status on IRS Form W-8BEN. By executing this certificate, the
undersigned agrees that (1) if the information provided on this certificate
changes, the undersigned shall promptly so inform such Lender in writing, and
(2) the undersigned shall have at all times furnished such Lender with a
properly completed and currently effective certificate in either the calendar
year in which each payment is to be made to the undersigned, or in either of
the two calendar years preceding such payments.

                    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

	
  

 	
  

 	
  

 
	
 [NAME OF
 PARTICIPANT]

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
 Title: 

 	
  

 
	
  

 	
  

 	
  

 
	
 Date:
 ________ __, 201_

 	
  

 

EXHIBIT G-3

FORM OF U.S. TAX COMPLIANCE
CERTIFICATE

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax
Purposes)

                    Reference
is hereby made to the Credit Agreement dated as of December 7, 2012 (as amended
or otherwise modified from time to time, the “Credit Agreement”) among
Donaldson Company, Inc. (the “Company”), various subsidiaries thereof,
various financial institutions and Wells Fargo Bank, National Association, as
Administrative Agent. 

                    Pursuant
to the provisions of Section 3.01 of the Credit Agreement, the undersigned
hereby certifies that (i) it is the sole record owner of the participation in
respect of which it is providing this certificate, (ii) its direct or indirect
partners/members are the sole beneficial owners of such participation, (iii)
with respect such participation, neither the undersigned nor any of its direct
or indirect partners/members is a bank extending credit pursuant to a loan
agreement entered into in the ordinary course of its trade or business within
the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or
indirect partners/members is a ten percent shareholder of any Borrower within
the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or
indirect partners/members is a controlled foreign corporation related to any
Borrower as described in Section 881(c)(3)(C) of the Code. 

                    The
undersigned has furnished its participating Lender with IRS Form W-8IMY
accompanied by one of the following forms from each of its partners/members
that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or
(ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN from each of such
partner’s/member’s beneficial owners that is claiming the portfolio interest
exemption. By executing this certificate, the undersigned agrees that (1) if
the information provided on this certificate changes, the undersigned shall
promptly so inform such Lender and (2) the undersigned shall have at all times
furnished such Lender with a properly completed and currently effective
certificate in either the calendar year in which each payment is to be made to
the undersigned, or in either of the two calendar years preceding such
payments.

                    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

	
  

 	
  

 	
  

 
	
 [NAME OF
 PARTICIPANT]

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
 Title: 

 	
  

 
	
  

 	
  

 	
  

 
	
 Date:
 ________ __, 201_

 	
  

 

EXHIBIT G-1

FORM OF U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax
Purposes)

                    Reference
is hereby made to the Credit Agreement dated as of December 7, 2012 (as amended
or otherwise modified from time to time, the “Credit Agreement”) among
Donaldson Company, Inc. (the “Company”), various subsidiaries thereof,
various financial institutions and Wells Fargo Bank, National Association, as
Administrative Agent. 

                    Pursuant
to the provisions of Section 3.01 of the Credit Agreement, the undersigned
hereby certifies that (i) it is the sole record owner of the Loan(s) (as well
as any Note(s) evidencing such Loan(s)) in respect of which it is providing
this certificate, (ii) its direct or indirect partners/members are the sole
beneficial owners of such Loan(s) (as well as any Note(s) evidencing such
Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit
Agreement or any other Loan Document, neither the undersigned nor any of its
direct or indirect partners/members is a bank extending credit pursuant to a
loan agreement entered into in the ordinary course of its trade or business
within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct
or indirect partners/members is a ten percent shareholder of any Borrower
within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its
direct or indirect partners/members is a controlled foreign corporation related
to any Borrower as described in Section 881(c)(3)(C) of the Code.

                    The
undersigned has furnished the Administrative Agent and the Company with IRS
Form W-8IMY accompanied by one of the following forms from each of its
partners/members that is claiming the portfolio interest exemption: (i) an IRS
Form W-8BEN or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN from
each of such partner’s/member’s beneficial owners that is claiming the
portfolio interest exemption. By executing this certificate, the undersigned
agrees that (1) if the information provided on this certificate changes, the
undersigned shall promptly so inform the Company and the Administrative Agent,
and (2) the undersigned shall have at all times furnished the Company and the
Administrative Agent with a properly completed and currently effective
certificate in either the calendar year in which each payment is to be made to
the undersigned, or in either of the two calendar years preceding such payments.

                    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

	
  

 	
  

 	
  

 
	
 [NAME OF
 LENDER]

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	
 Name: 

 	
  

 
	
  

 	
 Title: 

 	
  

 
	
  

 	
  

 	
  

 
	
 Date:
 ________ __, 201_

 	
  

 

EXHIBIT H-1

FORM OF

BORROWING SUBSIDIARY AGREEMENT

Date:
___________, 201_

	
  

 	
  

 
	
 To:

 	
 Wells
 Fargo Bank, National Association, as Administrative Agent

 

Ladies
and Gentlemen:

          The
undersigned, Donaldson Company, Inc. (the “Company”), refers to the
Credit Agreement dated as of December 7, 2012 (as it may be amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”)
among the Company, the Borrowing Subsidiaries from time to time party thereto,
the financial institutions from time to time party thereto and Wells Fargo
Bank, National Association, as Administrative Agent. Capitalized terms used and
not otherwise defined herein shall have the meanings assigned to such terms in
the Credit Agreement.

          Pursuant to
Section 2.15 of the Credit Agreement, the Company hereby designates [Name of
Borrowing Subsidiary] (the “Designated Borrowing Subsidiary”) as a
Borrowing Subsidiary. The Company and the Designated Borrowing
Subsidiary make, on and as of the date hereof, the representations and
warranties as to the Designated Borrowing Subsidiary contained in Article V
of the Credit Agreement. The Designated Borrowing Subsidiary agrees to be bound
in all respects by the terms of the Credit Agreement and to perform all of the
obligations of a Borrowing Subsidiary thereunder. Each reference to a Borrowing
Subsidiary in the Credit Agreement shall be deemed to include the Designated
Borrowing Subsidiary.

          All
communications to the Designated Borrowing Subsidiary under the Credit
Agreement should be directed to the Company as set forth in the Section 11.02
of the Credit Agreement.

          The
Designated Borrowing Subsidiary hereby agrees to provide the Lenders with any
additional information reasonably requested that will allow such Lender to
identify the Designated Borrowing Subsidiary in accordance with the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

          This
Borrowing Subsidiary Agreement shall be construed in accordance with and
governed by the laws of the State of New York. Loan proceeds should be
disbursed as provided in the Credit Agreement.

          Upon
the execution of this Borrowing Subsidiary Agreement by the Company and the
Designated Borrowing Subsidiary, and acceptance hereof by the Administrative
Agent, the Designated Borrowing Subsidiary shall become a Borrowing Subsidiary
under the Credit Agreement as though it were an original party thereto and
shall be entitled to borrow under the Credit Agreement upon the satisfaction of
the conditions precedent set forth in Sections 4.02 and, if applicable, 4.03
of the Credit Agreement.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Very truly
 yours,

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 DONALDSON
 COMPANY, INC.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 [DESIGNATED
 BORROWING

 SUBSIDIARY]

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
 Title:

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
 Accepted
 [and consented to]9 as of the date first above written:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 WELLS FARGO
 BANK, NATIONAL ASSOCIATION,

 as Administrative Agent

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 
	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 [[LENDER],
 as a Lender

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
  

 
	
 Name:

 	
  

 	
  

 
	
 Title:]

 	
  

 	
  

 

	
  

 	
  

 
	 

 	

 

9 To
be added only if the consent of the Administrative Agent and the Lenders is
required by the terms of the Credit Agreement.

EXHIBIT H-2

FORM OF

BORROWING SUBSIDIARY TERMINATION

Date:
___________, 201_

	
  

 	
  

 
	
 To:

 	
 Wells Fargo Bank, National
 Association, as Administrative Agent

 

Ladies
and Gentlemen:

          Donaldson
Company, Inc. (the “Company”), refers to the Credit Agreement dated as
of December 7, 2012 (as it may be amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among the Company, the
Borrowing Subsidiaries from time to time party thereto, the financial
institutions from time to time party thereto and Wells Fargo Bank, National
Association, as Administrative Agent. Capitalized terms used and not otherwise
defined herein shall have the meanings assigned to such terms in the Credit
Agreement.

          Pursuant
to Section 2.15 of the Credit Agreement, the Company hereby elects to terminate
the status of [Name of Borrowing Subsidiary] (the “Terminated Borrowing Subsidiary”)
as a Borrowing Subsidiary for purposes of the Credit Agreement. The Company
represents and warrants that no Loans or Letters of Credit made to or issued
for the account of the Terminated Borrowing Subsidiary are outstanding as of the
date hereof and that all principal and interest on all Loans, all reimbursement
obligations with respect to Letters of Credit and all other Obligations to be
paid or performed by the Terminated Borrowing Subsidiary pursuant to the Credit
Agreement have been paid or performed in full on or prior to the date hereof.
In the event the foregoing representation and warranty shall be untrue or
inaccurate in any respect for any reason whatsoever, the Company acknowledges
and confirms that it remains fully liable with respect to the Obligations of
the Terminated Borrowing Subsidiary pursuant to the Company’s Guarantee set
forth in Article X of the Credit Agreement.

          This
Borrowing Subsidiary Termination shall be construed in accordance with and
governed by the laws of the State of New York.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Very truly
 yours,

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 DONALDSON
 COMPANY, INC.

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
 Title:

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