Document:

Exhibit 10.1

	 	 	 	 	 	 	 	Confidential portions of this document have been omitted pursuant to a request for confidential treatment and filed separately with Securities and Exchange Commission

	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 FOURTH AMENDED AND RESTATED CREDIT AND
 SECURITY AGREEMENT
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 DATED AS OF JUNE
 11, 2008
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 AMONG
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 QUEST DIAGNOSTICS RECEIVABLES INC., AS BORROWER,
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 QUEST DIAGNOSTICS INCORPORATED, AS INITIAL SERVICER,
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 VARIABLE FUNDING CAPITAL COMPANY LLC,
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 GOTHAM FUNDING CORPORATION,
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 WACHOVIA BANK, NATIONAL ASSOCIATION,
 	
  
 
	
  
 	
 INDIVIDUALLY AND AS VFCC AGENT,
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 AND
 	
  
 
	
  
 	
  
 	
  
 
	
  
 	
 THE BANK OF TOKYO-MITSUBISHI, UFJ, LTD.,
 NEW YORK BRANCH,
 	
  
 
	
  
 	
 INDIVIDUALLY, AS GOTHAM AGENT AND AS ADMINISTRATIVE AGENT
 	
  
 
	
  
 	
  
 	
  
 

TABLE OF CONTENTS 

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
 PAGE  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
 
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE I.
 THE CREDIT
 	
  
 	
 2
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 1.1
 	
  
 	
 The Facility
 	
  
 	
 2
 
	
  
 	
 Section 1.2
 	
  
 	
 Funding
 Mechanics; Liquidity Fundings
 	
  
 	
 3
 
	
  
 	
 Section 1.3
 	
  
 	
 Interest
 Rates
 	
  
 	
 4
 
	
  
 	
 Section 1.4
 	
  
 	
 Payment
 Dates; Absence of Notes to Evidence Loans
 	
  
 	
 4
 
	
  
 	
 Section 1.5
 	
  
 	
 Prepayments
 	
  
 	
 5
 
	
  
 	
 Section 1.6
 	
  
 	
 Reductions
 in Aggregate Commitment
 	
  
 	
 6
 
	
  
 	
 Section 1.7
 	
  
 	
 Distribution
 of Certain Notices; Notification of Interest Rates
 	
  
 	
 6
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE II.
 BORROWING AND PAYMENT MECHANICS; CERTAIN COMPUTATIONS
 	
  
 	
 7
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 2.1
 	
  
 	
 Method of
 Borrowing
 	
  
 	
 7
 
	
  
 	
 Section 2.2
 	
  
 	
 Selection of
 CP Tranche Periods and Interest Periods
 	
  
 	
 7
 
	
  
 	
 Section 2.3
 	
  
 	
 Computation
 of Concentration Limits and Unpaid Net Balance
 	
  
 	
 8
 
	
  
 	
 Section 2.4
 	
  
 	
 Maximum
 Interest Rate
 	
  
 	
 8
 
	
  
 	
 Section 2.5
 	
  
 	
 Payments and
 Computations, Etc.
 	
  
 	
 8
 
	
  
 	
  
 	
 (a) Payments
 	
  
 	
 8
 
	
  
 	
  
 	
 (b) Late
 Payments
 	
  
 	
 9
 
	
  
 	
  
 	
 (c) Method
 of Computation
 	
  
 	
 9
 
	
  
 	
  
 	
 (d)
 Avoidance or Rescission of Payments
 	
  
 	
 9
 
	
  
 	
 Section 2.6
 	
  
 	
 Non-Receipt
 of Funds by the Co Agents
 	
  
 	
 9
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE III.
 SETTLEMENTS
 	
  
 	
 9
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 3.1
 	
  
 	
 Reporting
 	
  
 	
 9
 
	
  
 	
  
 	
 (a) Monthly
 Reports
 	
  
 	
 9
 
	
  
 	
  
 	
 (b) Weekly
 Reports; Right to Request Cash Collateral Payment
 	
  
 	
 9
 
	
  
 	
  
 	
 (c)
 Interest; Other Amounts Due
 	
  
 	
 10
 
	
  
 	
 Section 3.2
 	
  
 	
 Turnover of
 Collections
 	
  
 	
 10
 
	
  
 	
 Section 3.3
 	
  
 	
 Non-Distribution
 of Servicer’s Fee
 	
  
 	
 12
 
	
  
 	
 Section 3.4
 	
  
 	
 Deemed
 Collections
 	
  
 	
 12
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE IV.
 FEES AND YIELD PROTECTION
 	
  
 	
 12
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 4.1
 	
  
 	
 Fees
 	
  
 	
 12
 
	
  
 	
 Section 4.2
 	
  
 	
 Yield
 Protection
 	
  
 	
 13
 
	
  
 	
 Section 4.3
 	
  
 	
 Funding
 Losses
 	
  
 	
 15
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE V.
 CONDITIONS OF ADVANCES
 	
  
 	
 16
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 5.1
 	
  
 	
 Conditions
 Precedent to Restatement Effectiveness
 	
  
 	
 16
 
	
  
 	
 Section 5.2
 	
  
 	
 Conditions
 Precedent to All Advances
 	
  
 	
 17
 

i

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE VI.
 REPRESENTATIONS AND WARRANTIES
 	
  
 	
 18
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 6.1
 	
  
 	
 Representations
 and Warranties of Loan Parties
 	
  
 	
 18
 
	
  
 	
  
 	
 (a)
 Ownership of the Borrower
 	
  
 	
 18
 
	
  
 	
  
 	
 (b)
 Existence; Due Qualification; Permits
 	
  
 	
 18
 
	
  
 	
  
 	
 (c) Action
 	
  
 	
 19
 
	
  
 	
  
 	
 (d) Absence
 of Default
 	
  
 	
 19
 
	
  
 	
  
 	
 (e)
 Noncontravention
 	
  
 	
 19
 
	
  
 	
  
 	
 (f) No
 Proceedings
 	
  
 	
 19
 
	
  
 	
  
 	
 (g) Taxes
 	
  
 	
 20
 
	
  
 	
  
 	
 (h)
 Government Approvals
 	
  
 	
 20
 
	
  
 	
  
 	
 (i)
 Financial Statements and Absence of Certain Material Adverse Changes
 	
  
 	
 21
 
	
  
 	
  
 	
 (j) Nature
 of Receivables
 	
  
 	
 21
 
	
  
 	
  
 	
 (k) Margin
 Regulations
 	
  
 	
 21
 
	
  
 	
  
 	
 (l) Title to
 Receivables and Quality of Title
 	
  
 	
 21
 
	
  
 	
  
 	
 (m) Accurate
 Reports
 	
  
 	
 22
 
	
  
 	
  
 	
 (n)
 Jurisdiction of Organization; Offices
 	
  
 	
 22
 
	
  
 	
  
 	
 (o)
 Lockboxes and Collection Accounts
 	
  
 	
 22
 
	
  
 	
  
 	
 (p) Eligible
 Receivables
 	
  
 	
 23
 
	
  
 	
  
 	
 (q) ERISA
 	
  
 	
 23
 
	
  
 	
  
 	
 (r) Names
 	
  
 	
 23
 
	
  
 	
  
 	
 (s) Credit
 and Collection Policy
 	
  
 	
 23
 
	
  
 	
  
 	
 (t) Payments
 to Applicable Originator
 	
  
 	
 24
 
	
  
 	
  
 	
 (u)
 Investment Company Act; Public Utility Holding Company Act; Other
 Restrictions
 	
  
 	
 24
 
	
  
 	
  
 	
 (v)
 Borrowing Base; Solvency
 	
  
 	
 24
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE VII.
 GENERAL COVENANTS OF LOAN PARTIES
 	
  
 	
 24
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 7.1
 	
  
 	
 Affirmative
 Covenants of Loan Parties
 	
  
 	
 24
 
	
  
 	
  
 	
 (a)
 Compliance With Laws, Etc
 	
  
 	
 24
 
	
  
 	
  
 	
 (b)
 Preservation of Existence
 	
  
 	
 24
 
	
  
 	
  
 	
 (c) Audits
 	
  
 	
 24
 
	
  
 	
  
 	
 (d) Keeping
 of Records and Books of Account
 	
  
 	
 25
 
	
  
 	
  
 	
 (e)
 Performance and Compliance with Receivables, Invoices and Contracts
 	
  
 	
 25
 
	
  
 	
  
 	
 (f)
 Jurisdiction of Organization; Location of Records
 	
  
 	
 25
 
	
  
 	
  
 	
 (g) Credit
 and Collection Policies
 	
  
 	
 25
 
	
  
 	
  
 	
 (h) Sale
 Agreement
 	
  
 	
 26
 
	
  
 	
  
 	
 (i)
 Collections
 	
  
 	
 26
 
	
  
 	
  
 	
 (j) Further
 Assurances
 	
  
 	
 26
 
	
  
 	
 Section 7.2
 	
  
 	
 Reporting
 Requirements of Loan Parties
 	
  
 	
 26
 
	
  
 	
  
 	
 (a)
 Quarterly Financial Statements
 	
  
 	
 26
 
	
  
 	
  
 	
 (b) Annual
 Financial Statements
 	
  
 	
 27
 
	
  
 	
  
 	
 (c) Reports
 to SEC and Exchanges
 	
  
 	
 27
 
	
  
 	
  
 	
 (d) ERISA
 	
  
 	
 27
 

ii

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 (e) Events
 of Default, etc
 	
  
 	
 27
 
	
  
 	
  
 	
 (f)
 Litigation
 	
  
 	
 27
 
	
  
 	
  
 	
 (g) Reviews
 of Receivables
 	
  
 	
 27
 
	
  
 	
  
 	
 (h) Change
 in Business or Credit and Collection Policy
 	
  
 	
 27
 
	
  
 	
  
 	
 (i)
 Downgrade
 	
  
 	
 28
 
	
  
 	
  
 	
 (j) Other
 	
  
 	
 28
 
	
  
 	
 Section 7.3
 	
  
 	
 Negative
 Covenants of Loan Parties
 	
  
 	
 28
 
	
  
 	
  
 	
 (a) Sales,
 Liens, Etc
 	
  
 	
 28
 
	
  
 	
  
 	
 (b)
 Extension or Amendment of Receivables
 	
  
 	
 28
 
	
  
 	
  
 	
 (c) Change
 in Business or Credit and Collection Policy
 	
  
 	
 28
 
	
  
 	
  
 	
 (d) Change
 in Payment Instructions to Obligors
 	
  
 	
 28
 
	
  
 	
  
 	
 (e) Deposits
 to Accounts
 	
  
 	
 29
 
	
  
 	
  
 	
 (f) Changes
 to Other Documents
 	
  
 	
 29
 
	
  
 	
  
 	
 (g)
 Restricted Payments by the Borrower
 	
  
 	
 29
 
	
  
 	
  
 	
 (h) Borrower
 Indebtedness
 	
  
 	
 29
 
	
  
 	
  
 	
 (i)
 Prohibition on Additional Negative Pledges
 	
  
 	
 29
 
	
  
 	
  
 	
 (j) Name
 Change, Offices, Records and Books of Accounts
 	
  
 	
 29
 
	
  
 	
  
 	
 (k) Mergers,
 Consolidations and Acquisitions
 	
  
 	
 30
 
	
  
 	
  
 	
 (l)
 Disposition of Receivables and Related Assets
 	
  
 	
 30
 
	
  
 	
  
 	
 (m) Borrowing
 Base
 	
  
 	
 30
 
	
  
 	
 Section 7.4
 	
  
 	
 Separate
 Existence of the Borrower
 	
  
 	
 30
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE
 VIII. ADMINISTRATION AND COLLECTION
 	
  
 	
 32
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 8.1
 	
  
 	
 Designation
 of Servicer
 	
  
 	
 32
 
	
  
 	
  
 	
 (a) Quest
 Diagnostics as Initial Servicer
 	
  
 	
 32
 
	
  
 	
  
 	
 (b)
 Successor Notice; Servicer Transfer Events
 	
  
 	
 33
 
	
  
 	
  
 	
 (c)
 Subcontracts
 	
  
 	
 33
 
	
  
 	
  
 	
 (d) Expense
 Indemnity after a Servicer Transfer Event
 	
  
 	
 33
 
	
  
 	
 Section 8.2
 	
  
 	
 Duties of
 Servicer
 	
  
 	
 34
 
	
  
 	
  
 	
 (a)
 Appointment; Duties in General
 	
  
 	
 34
 
	
  
 	
  
 	
 (b)
 Segregation of Collections
 	
  
 	
 34
 
	
  
 	
  
 	
 (c)
 Modification of Receivables
 	
  
 	
 34
 
	
  
 	
  
 	
 (d)
 Contracts and Records
 	
  
 	
 34
 
	
  
 	
  
 	
 (e) Certain
 Duties to the Borrower
 	
  
 	
 34
 
	
  
 	
  
 	
 (f)
 Termination
 	
  
 	
 34
 
	
  
 	
  
 	
 (g) Power of
 Attorney
 	
  
 	
 34
 
	
  
 	
 Section 8.3
 	
  
 	
 Rights of
 the Agents
 	
  
 	
 35
 
	
  
 	
  
 	
 (a) Notice
 to Obligors
 	
  
 	
 35
 
	
  
 	
  
 	
 (b) Notice
 to Collection Banks
 	
  
 	
 35
 
	
  
 	
  
 	
 (c) Rights
 on Servicer Transfer Event
 	
  
 	
 35
 
	
  
 	
 Section 8.4
 	
  
 	
 Responsibilities
 of Loan Parties
 	
  
 	
 36
 
	
  
 	
  
 	
 (a)
 Contracts
 	
  
 	
 36
 
	
  
 	
  
 	
 (b)
 Limitation of Liability
 	
  
 	
 36
 
	
  
 	
 Section 8.5
 	
  
 	
 Further
 Action Evidencing the Security Interest
 	
  
 	
 36
 
	
  
 	
 Section 8.6
 	
  
 	
 Application
 of Collections
 	
  
 	
 36
 

iii

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE IX.
 SECURITY INTEREST
 	
  
 	
 37
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 9.1
 	
  
 	
 Grant of
 Security Interest
 	
  
 	
 37
 
	
  
 	
 Section 9.2
 	
  
 	
 Termination
 after Final Payout Date
 	
  
 	
 37
 
	
  
 	
 Section 9.3
 	
  
 	
 Limitation
 on Rights to Collateral Proceeds
 	
  
 	
 37
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE X.
 EVENTS OF DEFAULT
 	
  
 	
 37
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 10.1
 	
  
 	
 Events of
 Default
 	
  
 	
 37
 
	
  
 	
 Section 10.2
 	
  
 	
 Remedies
 	
  
 	
 40
 
	
  
 	
  
 	
 (a) Optional
 Acceleration
 	
  
 	
 40
 
	
  
 	
  
 	
 (b)
 Automatic Acceleration
 	
  
 	
 40
 
	
  
 	
  
 	
 (c)
 Additional Remedies
 	
  
 	
 40
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE XI.
 THE AGENTS
 	
  
 	
 40
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 11.1
 	
  
 	
 Appointment
 	
  
 	
 40
 
	
  
 	
 Section 11.2
 	
  
 	
 Delegation
 of Duties
 	
  
 	
 41
 
	
  
 	
 Section 11.3
 	
  
 	
 Exculpatory
 Provisions
 	
  
 	
 41
 
	
  
 	
 Section 11.4
 	
  
 	
 Reliance by
 Agents
 	
  
 	
 42
 
	
  
 	
 Section 11.5
 	
  
 	
 Notice of
 Events of Default
 	
  
 	
 42
 
	
  
 	
 Section 11.6
 	
  
 	
 Non-Reliance
 on Other Agents and Lenders
 	
  
 	
 42
 
	
  
 	
 Section 11.7
 	
  
 	
 Indemnification
 of Agents
 	
  
 	
 43
 
	
  
 	
 Section 11.8
 	
  
 	
 Agents in
 their Individual Capacities
 	
  
 	
 43
 
	
  
 	
 Section 11.9
 	
  
 	
 [Reserved]
 	
  
 	
 44
 
	
  
 	
 Section
 11.10
 	
  
 	
 Conflict
 Waivers
 	
  
 	
 44
 
	
  
 	
 Section
 11.11
 	
  
 	
 UCC Filings
 	
  
 	
 44
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE XII.
 ASSIGNMENTS AND PARTICIPATIONS
 	
  
 	
 45
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 12.1
 	
  
 	
 Restrictions
 on Assignments, etc.
 	
  
 	
 45
 
	
  
 	
 Section 12.2
 	
  
 	
 Rights of
 Assignees and Participants
 	
  
 	
 46
 
	
  
 	
 Section 12.3
 	
  
 	
 Terms and
 Evidence of Assignment
 	
  
 	
 46
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE
 XIII. INDEMNIFICATION
 	
  
 	
 46
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 13.1
 	
  
 	
 Indemnities
 by the Borrower
 	
  
 	
 46
 
	
  
 	
  
 	
 (a) General
 Indemnity
 	
  
 	
 46
 
	
  
 	
  
 	
 (b) Contest
 of Tax Claim; After-Tax Basis
 	
  
 	
 48
 
	
  
 	
  
 	
 (c) Contribution
 	
  
 	
 49
 
	
  
 	
 Section 13.2
 	
  
 	
 Indemnities
 by Servicer
 	
  
 	
 49
 
	
  
 	
  
 	
  
 	
  
 
	
 ARTICLE XIV.
 MISCELLANEOUS
 	
  
 	
 50
 
	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 14.1
 	
  
 	
 Amendments,
 Etc
 	
  
 	
 50
 
	
  
 	
 Section 14.2
 	
  
 	
 Notices, Etc
 	
  
 	
 51
 
	
  
 	
 Section 14.3
 	
  
 	
 No Waiver;
 Remedies
 	
  
 	
 51
 
	
  
 	
 Section 14.4
 	
  
 	
 Binding
 Effect; Survival
 	
  
 	
 51
 

iv

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Section 14.5
 	
  
 	
 Costs,
 Expenses and Stamp Taxes
 	
  
 	
 51
 
	
  
 	
 Section 14.6
 	
  
 	
 No
 Proceedings
 	
  
 	
 52
 
	
  
 	
 Section 14.7
 	
  
 	
 Confidentiality
 of Borrower Information
 	
  
 	
 52
 
	
  
 	
 Section 14.8
 	
  
 	
 Confidentiality
 of Program Information
 	
  
 	
 53
 
	
  
 	
  
 	
 (a)
 Confidential Information
 	
  
 	
 53
 
	
  
 	
  
 	
 (b)
 Availability of Confidential Information
 	
  
 	
 54
 
	
  
 	
  
 	
 (c) Legal
 Compulsion to Disclose
 	
  
 	
 54
 
	
  
 	
  
 	
  (d) Survival
 	
  
 	
 54
 
	
  
 	
 Section 14.9
 	
  
 	
 Captions and
 Cross References
 	
  
 	
 55
 
	
  
 	
 Section
 14.10
 	
  
 	
 Integration
 	
  
 	
 55
 
	
  
 	
 Section
 14.11
 	
  
 	
 Governing
 Law
 	
  
 	
 55
 
	
  
 	
 Section
 14.12
 	
  
 	
 Waiver Of
 Jury Trial
 	
  
 	
 55
 
	
  
 	
 Section 14.13
 	
  
 	
 Consent To
 Jurisdiction; Waiver Of Immunities
 	
  
 	
 55
 
	
  
 	
 Section
 14.14
 	
  
 	
 Business
 Associate Agreement; Health Care Data Privacy and Security Requirements
 	
  
 	
 56
 
	
  
 	
  
 	
 (a)
 Definitions
 	
  
 	
 56
 
	
  
 	
  
 	
 (b) Privacy
 	
  
 	
 56
 
	
  
 	
  
 	
 (c) Security
 	
  
 	
 57
 
	
  
 	
  
 	
 (d) EDI
 	
  
 	
 57
 
	
  
 	
  
 	
 (e) Benefit
 	
  
 	
 57
 
	
  
 	
  
 	
 (f)
 Mitigation
 	
  
 	
 57
 
	
  
 	
  
 	
 (g)
 Amendment
 	
  
 	
 57
 
	
  
 	
  
 	
 (h) Survival
 	
  
 	
 58
 
	
  
 	
  
 	
 (i)
 Interpretation
 	
  
 	
 58
 
	
  
 	
  
 	
 (j) Several
 Liability of Business Associates
 	
  
 	
 58
 
	
  
 	
 Section
 14.15
 	
  
 	
 Execution in
 Counterparts
 	
  
 	
 58
 
	
  
 	
 Section
 14.16
 	
  
 	
 No Recourse
 Against Other Parties
 	
  
 	
 58
 

v

FOURTH AMENDED AND RESTATED CREDIT AND
SECURITY AGREEMENT

                    THIS FOURTH AMENDED AND RESTATED CREDIT AND SECURITY
AGREEMENT is entered into as of June 11,
2008, by and among: 

	
  

 	
  

 
	
  

 	
                     (1) QUEST DIAGNOSTICS RECEIVABLES INC., a Delaware corporation (together with its
 successors and permitted assigns, the “Borrower”), 

 
	
  

 	
  

 
	
  

 	
                     (2) QUEST DIAGNOSTICS INCORPORATED, a Delaware corporation (together with its
 successors, “Quest Diagnostics”), as initial servicer hereunder
 (in such capacity, together with any successor servicer or sub-servicer
 appointed pursuant to Section 8.1, the “Servicer”), 

 
	
  

 	
  

 
	
  

 	
                     (3) VARIABLE FUNDING CAPITAL COMPANY LLC, a Delaware corporation (together with
 its successors, “VFCC”), and WACHOVIA BANK,
 NATIONAL ASSOCIATION, in its capacity as a Liquidity Bank to VFCC (together
 with its successors, “Wachovia” and together with
 VFCC, the “VFCC Group”), 

 
	
  

 	
  

 
	
  

 	
                     (4) GOTHAM FUNDING CORPORATION, a Delaware corporation (together with its
 successors, “Gotham”), and THE BANK OF TOKYO-MITSUBISHI UFJ,
 LTD., NEW YORK BRANCH, in its capacity as a Liquidity Bank to Gotham
 (together with its successors, “BTMU” and, together with
 Gotham, the “Gotham Group”), 

 
	
  

 	
  

 
	
  

 	
                     (5) WACHOVIA BANK, NATIONAL ASSOCIATION, in its capacity as agent for the VFCC
 Group (together with its successors in such capacity, the “VFCC Agent” or a “Co-Agent”), and THE BANK OF
 TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, in its capacity as agent for the
 Gotham Group (together with its successors in such capacity, the “Gotham Agent” or a “Co-Agent”), and 

 
	
  

 	
  

 
	
  

 	
                     (6) THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as administrative
 agent for the VFCC Group, the Gotham Group and the Co-Agents (in such
 capacity, together with any successors thereto in such capacity, the “Administrative
 Agent” and together with each of the Co-Agents, the “Agents”),
 

 

with respect
to that certain Third Amended and Restated Credit and Security Agreement dated
as of April 20, 2004 originally by and among the Borrower, the Servicer, VFCC,
Atlantic Asset Securitization LLC (“Atlantic”), Calyon New York
Branch, individually and as a co-agent, and Wachovia Bank, National Association
as administrative agent, as amended from time to time prior to the date hereof
(the “Existing Agreement”). 

                    Unless
otherwise indicated, capitalized terms used in this Agreement are defined in
Annex A. 

W I T N E S S E T H : 

                    WHEREAS,
the Borrower is a wholly-owned direct subsidiary of
Quest Diagnostics;

	
  

 	
  

 
	
  

 	
           WHEREAS,
 Quest Diagnostics and certain of its Subsidiaries as Originators and the
 Borrower have entered into the Sale Agreement pursuant to which each of the
 Originators has sold and/or contributed, and hereafter will sell to the
 Borrower, all of such Originator’s right, title and interest in and to its
 Receivables and certain related rights;

 
	
  

 	
  

 
	
  

 	
           WHEREAS,
 immediately prior to the effectiveness of this Agreement, (i) Calyon and
 Atlantic assigned all of their respective rights and obligations under the
 Transaction Documents to BTMU and Gotham, respectively, and (ii) Wachovia
 Bank, National Association was replaced by The Bank of Tokyo-Mitsubishi UFJ,
 Ltd., New York Branch, as Administrative Agent; 

 
	
  

 	
  

 
	
  

 	
           WHEREAS, pursuant to the Existing Agreement, the
 Groups committed to make loans to the Borrower from time to time, secured by
 the Collateral, and Quest Diagnostics agreed to act as Servicer; and 

 
	
  

 	
  

 
	
  

 	
           WHEREAS, the Borrower, the Servicer, the VFCC
 Group, the Gotham Group and the Administrative Agent wish to amend and
 restate the Existing Agreement in its entirety, on the terms and subject to
 the conditions hereinafter set forth; 

 
	
  

 	
  

 
	
  

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

 

ARTICLE I. 

THE CREDIT

          Section
1.1 The Facility. On the terms and subject to the conditions set forth
in this Agreement, the Borrower (or the Servicer on the Borrower’s behalf) may
from time to time during the Revolving Period for each Group request Advances
by delivering a Borrowing Request to the applicable Co-Agent(s) in accordance
with Section 2.1. Upon receipt of a copy of each Borrowing Request from the
Borrower or Servicer during a Group’s Revolving Period, each applicable
Co-Agent shall determine whether its Conduit will fund a Loan in an amount
equal to the portion of the requested Advance specified in such Borrowing
Request, and 

	
  

 	
  

 
	
  

 	
           (a)
 in the event that VFCC elects not to make any such Loan to the Borrower, the
 VFCC Agent shall promptly notify the Borrower and, unless the Borrower
 cancels its Borrowing Request, each of the Liquidity Banks of VFCC severally
 agrees to make its Ratable Share of such Loan to the Borrower, on the terms
 and subject to the conditions hereof, provided that at no time may the aggregate
 principal amount of VFCC’s and its Liquidity Banks’ Loans at any one time
 outstanding exceed the lesser of (i) the aggregate amount of the VFCC
 Liquidity Banks’ Commitments, and (ii) the VFCC Group’s Percentage of the
 Borrowing Base (such lesser amount, the “VFCC Allocation Limit”); 

 
	
  

 	
  

 
	
  

 	
           (b) in the
 event that Gotham elects not to make any such Loan to the Borrower, the
 Gotham Agent shall promptly notify the Borrower and, unless the Borrower
 cancels its Borrowing Request, each of the Liquidity Banks of Gotham
 severally agrees to make its Ratable Share of such Loan to the Borrower, on
 the terms and subject to the conditions hereof, provided that at no time may the
 aggregate principal amount of Gotham’s and its 

 

2

	
  

 	
  

 
	
  

 	
 Liquidity
 Banks’ Loans at any one time outstanding exceed the lesser of (i) the
 aggregate amount of the Gotham Liquidity Banks’ Commitments, and (ii) the
 Gotham Group’s Percentage of the Borrowing Base (such lesser amount, the “Gotham
 Allocation Limit”). 

 

Each Loan
shall be in the minimum amount of $1,000,000 or a larger integral multiple of
$500,000. In no event may the aggregate principal amount of the Advances
hereunder exceed the lesser of (x) the Aggregate Commitment, or (y) the
Borrowing Base. Each Liquidity Bank’s Commitment under this Agreement shall
terminate on the earlier to occur of such Liquidity Bank’s Scheduled Termination
Date and the Termination Date. Each of the Loans, and all other Obligations of
the Borrower, shall be secured by the Collateral as provided in Article IX. 

          Section
1.2 Funding Mechanics; Liquidity Fundings. 

	
  

 	
  

 
	
  

 	
           (a)
 Prior to the VFCC Group’s Termination Date, each Advance hereunder shall
 consist of Loans made by (i) Gotham and/or its Liquidity Banks, and/or (ii)
 VFCC and/or its Liquidity Banks, and which (except for any Advance which does
 not increase the aggregate principal amount of the Loans outstanding) shall
 be made in such proportions by each Group such that, after giving effect
 thereto, the aggregate outstanding principal balance of the Loans outstanding
 from each Group shall be in proportion to such Group’s Commitment Percentage.
 Any Advance which does not increase the aggregate principal amount
 outstanding may be funded solely by one or more of the members of each Group.
 From and after the VFCC Group’s Termination Date, each Advance hereunder
 shall consist of Loans made solely by Gotham and/or its Liquidity Banks. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Each Lender funding any Loan (or portion thereof) shall wire transfer the
 principal amount thereof to its applicable Co-Agent in immediately available
 funds not later than 12:00 noon (New York City time) on the applicable
 Borrowing Date and, subject to its receipt of such Loan proceeds, such
 Co-Agent shall wire transfer such funds to the account specified by the
 Borrower in its Borrowing Request not later than 2:00 p.m. (New York City
 time) on such Borrowing Date. 

 
	
  

 	
  

 
	
  

 	
           (c)
 While it is the intent of each of the Conduits to fund its respective Loans
 through the issuance of Commercial Paper Notes, the parties acknowledge that
 if either of the Conduits is unable, or determines that it is undesirable, to
 issue Commercial Paper Notes to fund all or any portion of its Loans at a CP
 Rate, or is unable to repay such Commercial Paper Notes upon the maturity
 thereof, such Conduit may sell all or any portion of its Loans (or interests
 therein) to its Liquidity Banks at any time pursuant to its Liquidity
 Agreement to finance or refinance the necessary portion of its Loans through
 a Liquidity Funding to the extent available. The Liquidity Fundings may be
 Alternate Base Rate Loans or Eurodollar Loans, or a combination thereof,
 selected by the Borrower in accordance with Article II. In addition, the
 parties acknowledge that Commercial Paper Notes are issued at a discount and
 at varying discount rates; accordingly, it may not be possible for all CP
 Rate Loans to be made in amounts precisely equal to the amounts specified in
 a Borrowing Request. Regardless of whether a Liquidity Funding constitutes an
 assignment of a Loan or the sale of one or more participations therein, each
 Liquidity Bank participating in a Liquidity Funding shall have the rights of
 a “Lender” hereunder 

 

3

	
  

 	
  

 
	
  

 	
 with the
 same force and effect as if it had directly made a Loan to the Borrower in
 the amount of its Liquidity Funding. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Nothing herein shall be deemed to commit any Lender to make CP Rate Loans. 

 
	
  

 	
  

 
	
  

 	
 Section 1.3 Interest
 Rates.

 
	
  

 
	
  

 	
           (a)
 Each CP Rate Loan shall bear interest on the outstanding principal amount
 thereof from and including the first day of the CP Tranche Period applicable
 thereto selected in accordance with Article II of this Agreement to (but not
 including) the last day of such CP Tranche Period at the applicable CP Rate.
 On the 5th Business Day immediately preceding each Settlement Date, each Pool
 Funded Conduit shall calculate the aggregate amount of CP Costs for the
 applicable Accrual Period and shall notify the Borrower of its aggregate
 amount of such CP Costs which shall be payable on such Settlement Date. At
 any time while Gotham is not acting as Pool Funded Conduit, on the 5th Business
 Day immediately preceding each Settlement Date, the Gotham Agent shall
 calculate Gotham’s CP Rate and each shall notify Borrower of the aggregate
 amount of CP Costs which shall be payable on such Settlement Date. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Each Eurodollar Loan shall bear interest on the outstanding principal amount
 thereof from and including the first day of the Interest Period applicable
 thereto selected in accordance with Article II of this Agreement to (but not
 including) the last day of such Interest Period at a rate per annum equal to the sum of (i) the
 applicable Eurodollar Rate (Reserve Adjusted) for such Interest Period plus
 (ii) the Applicable Percentage per annum.
 

 
	
  

 	
  

 
	
  

 	
           (c)
 Each Alternate Base Rate Loan shall bear interest on the outstanding
 principal amount thereof, for each day from and including the date such Loan
 is made to but excluding the date it is paid at a rate per annum equal to the Alternate Base
 Rate for such day. Changes in the rate of interest on Alternate Base Rate
 Loans will take effect simultaneously with each change in the Alternate Base
 Rate. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Notwithstanding anything to the contrary contained in Sections 1.3(a), (b) or
 (c), upon the occurrence of an Event of Default, and during the continuance
 thereof, all Obligations shall bear interest, payable upon demand, at the
 Default Rate. 

 
	
  

 	
  

 
	
  

 	
           (e)
 Interest shall be payable for the day a Loan is made but not for the day of
 any payment on the amount paid if payment is received prior to 1:00 p.m.
 (local time) at the place of payment. If any payment of principal of or
 interest on a Loan shall become due on a day which is not a Business Day,
 such payment shall be made on the next succeeding Business Day and, in the
 case of a principal payment, such extension of time shall be included in
 computing interest in connection with such payment. 

 
	
  

 	
  

 
	
  

 	
 Section 1.4 Payment
 Dates; Absence of Notes to Evidence Loans.

 
	
  

 	
  

 
	
  

 	
           (a)
 The Borrower promises to pay the principal of each CP Rate Loan outstanding
 from each of the Conduits on the applicable Termination Date. 

 

4

	
  

 	
  

 
	
  

 	
           (b)
 The Borrower promises to pay the principal of each Eurodollar Loan (if any)
 outstanding from each of the Liquidity Banks on or before the earliest to
 occur of (i) the applicable Termination Date, (ii) such Liquidity Bank’s
 Scheduled Termination Date, and (iii) the refinancing of such Loan with a CP
 Rate Loan or an Alternative Base Rate Loan. 

 
	
  

 	
  

 
	
  

 	
           (c)
 In addition to the foregoing, on each Business Day occurring on or after the
 last day of a Group’s Revolving Period, the Borrower promises to pay a
 portion of the principal of the Loans outstanding from such Group equal to
 such Group’s Percentage of the Collections. 

 
	
  

 	
  

 
	
  

 	
           (d)
 The Borrower promises to pay the principal of each Alternate Base Rate Loan
 (if any) outstanding from each of the Liquidity Banks on or before the
 earliest to occur of (i) the Termination Date, (ii) such Liquidity Bank’s
 Scheduled Termination Date, and (iii) the refinancing of such Loan with a CP Rate
 Loan or a Eurodollar Rate Loan. 

 
	
  

 	
  

 
	
  

 	
           (e)
 The Borrower promises to pay all accrued and unpaid interest on each Loan on
 its applicable Interest Payment Date. 

 
	
  

 	
  

 
	
  

 	
           (f)
 Each Lender shall maintain in accordance with its usual practice an account
 or accounts evidencing the indebtedness of the Borrower to such Lender
 resulting from each Loan made by such Lender from time to time, including the
 amounts of principal and interest payable and paid to such Lender from time
 to time hereunder. Upon request of the Borrower, such Lender’s Co-Agent or
 the Administrative Agent, such Lender will confirm the outstanding principal
 balances of its Loans and the amount of any accrued and unpaid interest
 thereon. The entries maintained in the accounts maintained pursuant to this
 Section shall be prima facie
 evidence of the existence and amounts of the Obligations therein recorded; provided, however,
 that the failure of any Lender to maintain such accounts or any error therein
 shall not in any manner affect the obligation of the Borrower to repay the
 Obligations in accordance with their terms. 

 
	
  

 	
  

 
	
           Section
 1.5 Prepayments. Subject, in the case of CP Rate Loans and Eurodollar
 Loans, to the funding indemnification provisions of Section 4.3: 

 
	
  

 
	
  

 	
           (a)
 The Borrower may from time to time voluntarily prepay, without penalty or
 premium, all outstanding Advances, or, in a minimum aggregate amount of
 $2,000,000 (or a larger integral multiple of $1,000,000), any portion of the
 outstanding Advances by giving prior written notice to the Co-Agents: (i)
 given within the Required Notice Period with respect to each Pool Funded
 Conduit’s Loans so prepaid and (ii) at any time while Gotham is not a Pool
 Funded Conduit, providing for such prepayment to occur on the last day of the
 CP Tranche Period with respect to Gotham’s CP Rate Loans so prepaid (each, a “Prepayment
 Notice”); provided that each such prepayment of
 principal is accompanied by a payment of all accrued and unpaid interest on
 the amount prepaid, together with all amounts (if any) due under Section 4.3,
 and except as provided in Section 14.1(c) and in the definitions of “Approved
 Amendment” and “Termination Date,” is made
 between the Groups in such proportions so that after giving effect thereto,
 the aggregate outstanding principal balance of the Loans outstanding from
 each Group shall be in proportion to the Groups’ respective Commitment
 Percentages. 

 

5

	
  

 	
  

 
	
  

 	
           (b)
 If, on any Business Day, the aggregate outstanding principal amount of the Loans
 from the VFCC Group exceeds the VFCC Allocation Limit, or the aggregate
 principal amount of the Loans outstanding from VFCC exceeds the VFCC
 Liquidity Banks’ Liquidity Commitments divided by 102%, the Borrower shall
 prepay such Loans by wire transfer to the VFCC Agent received not later than
 12:00 noon (New York City time) on the first Business Day thereafter of an
 amount sufficient to eliminate such excess, together with accrued and unpaid
 interest on the amount prepaid. 

 
	
  

 	
  

 
	
  

 	
           (c)
 If, on any Business Day, the aggregate outstanding principal amount of the
 Loans from the Gotham Group exceeds the Gotham Allocation Limit, or the
 aggregate principal amount of the Loans outstanding from Gotham exceeds the
 Gotham Liquidity Banks’ aggregate Liquidity Commitments divided by 102%, the
 Borrower shall prepay such Loans by wire transfer to the Gotham Agent
 received not later than 12:00 noon (New York City time) on the first Business
 Day thereafter of an amount sufficient to eliminate such excess, together with
 accrued and unpaid interest on the amount prepaid. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Upon receipt of any wire transfer pursuant to Section 1.5(a), (b) or (c), the
 applicable Co-Agent shall wire transfer to each of its Constituent Lenders
 their respective shares thereof not later than 1:00 p.m. (New York City time)
 on the date when received. Any prepayment required pursuant to Section 1.5(b)
 or (c) shall be applied first,
 to the ratable reduction of the applicable Group’s Alternate Base Rate Loans
 outstanding, second,
 to the ratable reduction of the applicable Group’s Eurodollar Loans
 outstanding, and lastly,
 to the reduction of the applicable Group’s CP Rate Loans selected by the
 Borrower (or the Servicer, on the Borrower’s behalf). 

 
	
  

 	
  

 
	
  

 	
           (e)
 Unless each of the Co-Agents in its sole discretion shall otherwise agree,
 not more than three (3) Advances and/or prepayments pursuant to Section
 1.5(a) may occur, in the aggregate, in any calendar week. 

 

          Section
1.6 Reductions in Aggregate Commitment. The Borrower may permanently
reduce the Aggregate Commitment in whole, or ratably between the Groups in
part, in a minimum amount of $10,000,000 (or a larger integral multiple of
$1,000,000), upon at least fifteen (15) Business Days’ written notice to the
Co-Agents (each, a “Commitment Reduction Notice”),
which notice shall specify the aggregate amount of any such reduction and the
VFCC Liquidity Banks’ and the Gotham Liquidity Banks’ respective Commitment
Percentages thereof, provided,
however, that (a) the amount of the Aggregate Commitment may not
be reduced below the aggregate principal amount of the outstanding Advances,
and (b) the amount of the Aggregate Commitment may not be reduced below
$100,000,000 unless the Aggregate Commitment is terminated in full. All accrued
and unpaid fees shall be payable on the effective date of any termination of
the Aggregate Commitment. Each Commitment Reduction Notice shall be irrevocable
once delivered to the Co-Agents. 

          Section
1.7 Distribution of Certain Notices; Notification of Interest Rates.
Promptly after receipt thereof, the VFCC Agent will notify the VFCC Group and
the Gotham Agent will notify the Gotham Group, of the contents of each Monthly
Report, Weekly Report, Borrowing Request, Commitment Reduction Notice,
Prepayment Notice or notice of default received by it from the Borrower or the
Servicer hereunder. In addition, each of the Co-Agents shall promptly 

6

notify its
Constituent Lenders and the Borrower of each determination of and change in
Interest Rates. 

ARTICLE II.

BORROWING AND PAYMENT MECHANICS; CERTAIN COMPUTATIONS

          Section
2.1 Method of Borrowing. The Borrower (or the Servicer, on the
Borrower’s behalf) shall give the Co-Agents irrevocable notice in the form of
Exhibit 2.1 hereto (each, a “Borrowing Request”) not later
than 12:00 noon (New York City time) at least two (2) Business Days before the
Borrowing Date of each Advance. On each Borrowing Date, each applicable Lender
shall make available its Loan or Loans in immediately available funds to its
Co-Agent by wire transfer of such amount received not later than 1:00 p.m. (New
York City time). Subject to its receipt of such wire transfers, each Co-Agent
will wire transfer the funds so received from its Constituent Lenders to the
Borrower at the account specified in its Borrowing Request not later than 2:00
p.m. (New York City time) on the applicable Borrowing Date. Unless each of the
Co-Agents in its sole discretion shall otherwise agree, not more than three (3)
Advances and/or prepayments pursuant to Section 1.5 may occur, in the
aggregate, in any calendar week. 

          Section
2.2 Selection of CP Tranche Periods and Interest Periods. 

	
  

 	
  

 
	
  

 	
           (a)
 Except upon the occurrence and during the continuance of an Event of Default
 or when Gotham is a Pool Funded Conduit, the Borrower (or the Servicer, on
 the Borrower’s behalf) in its Borrowing Request may request CP Tranche
 Periods from time to time to apply to Gotham’s CP Rate Loans; provided, however,
 that (i) at any time while Gotham has CP Rate Loans outstanding, at least one
 CP Tranche Period of Gotham shall mature on each Settlement Date and (ii) no
 CP Tranche Period of Gotham may extend beyond the latest Scheduled
 Termination Date of any Gotham Liquidity Bank. In addition to the foregoing,
 except upon the occurrence and during the continuance of an Event of Default,
 the Borrower (or the Servicer, on the Borrower’s behalf) in its Borrowing
 Request may request Interest Periods from time to time to apply to the
 Eurodollar Loans; provided,
 however, that (x) at any time while any Lender has Eurodollar
 Loans outstanding, at least one Interest Period of such Lender shall mature
 on each Settlement Date and (y) no Interest Period of any Lender which began
 prior to its Scheduled Termination Date shall extend beyond such Scheduled
 Termination Date. 

 
	
  

 	
  

 
	
  

 	
           (b)
 While the Gotham Agent will use reasonable efforts to accommodate the
 Borrower’s or the Servicer’s requests for CP Tranche Periods except during
 the continuance of an Event of Default or when Gotham is acting as Pool
 Funded Conduit, the Gotham Agent shall have the right to subdivide any
 requested CP Rate Loan into one or more CP Rate Loans of different CP Tranche
 Periods, or, if the requested period is not feasible, to suggest an alternative
 CP Tranche Period. While each of the Co-Agents will use reasonable efforts to
 accommodate the Borrower’s or the Servicer’s requests for Interest Periods
 for Eurodollar Loans except during the continuance of an Event of Default,
 each of the Co-Agents shall have the right to subdivide any requested
 Eurodollar Loan into one or more Eurodollar Loans with different Interest
 Periods, or, if the requested period is not feasible, to suggest an
 alternative Interest Period. Notwithstanding the foregoing, not less than
 $1,000,000 of principal may be allocated to 

 

7

	
  

 	
  

 
	
  

 	
 any CP
 Tranche Period or Interest Period of any Lender, and no Alternate Base Rate
 Loan may have a principal amount of less than $1,000,000. 

 
	
  

 	
  

 
	
  

 	
           (c)
 The Borrower (or the Servicer, on the Borrower’s behalf) may not request an
 Interest Period for a Eurodollar Loan unless it shall have given each of the
 applicable Co-Agent(s) written notice of its desire therefor not later than
 12:00 noon (New York City time) at least three (3) Business Days prior to the
 first day of the desired Interest Period. Accordingly, all Liquidity Fundings
 shall initially be Alternate Base Rate Loans. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Unless each Co-Agent shall have received written notice by 12:00 noon (New
 York City time) on the Required Day prior to the last day of a CP Tranche
 Period that the Borrower intends to reduce the aggregate principal amount of
 the CP Rate Loans outstanding, each of the Co-Agents and the Conduits shall
 be entitled to assume that the Borrower desires to refinance the principal
 and interest of each maturing CP Rate Loan on the last day of its CP Tranche
 Period with new CP Rate Loans having substantially similar CP Tranche
 Periods; provided,
 however, that the Borrower shall remain liable to pay in cash
 any portion of the principal or interest on the maturing CP Rate Loan when
 due to the extent that the applicable Conduit cannot issue Commercial Paper
 Notes or avail itself of a Liquidity Funding, in either case, in the precise
 amount necessary to refinance the maturing CP Rate Loan and the accrued and
 unpaid interest thereon. 

 
	
  

 	
  

 
	
  

 	
           (e)
 Unless the Co-Agents shall have received written notice by 12:00 noon (New
 York City time) on the third (3rd) Business Day prior to the last
 day of an Interest Period that the Borrower intends to reduce the aggregate
 principal amount of the Eurodollar Loans outstanding from the Liquidity
 Banks, each of the Liquidity Banks shall be entitled to assume that the
 Borrower desires to refinance its maturing Eurodollar Loans on the last day
 of such Interest Period with Alternate Base Rate Loans. 

 

          Section
2.3 Computation of Concentration Limits and Unpaid Net Balance. The
Obligor Concentration Limits and the aggregate Unpaid Net Balance of
Receivables of each Obligor and its Affiliated Obligors (if any) shall be
calculated as if each such Obligor and its Affiliated Obligors were one
Obligor. 

          Section
2.4 Maximum Interest Rate. No provision of this Agreement shall require
the payment or permit the collection of interest in excess of the maximum
permitted by applicable law. 

          Section
2.5 Payments and Computations, Etc. 

                    (a)
Payments. All amounts to be paid or deposited by the Borrower or the
Servicer (on the Borrower’s behalf) to any of the Agents or Lenders (other than
amounts payable under Section 4.2) shall be paid by wire or electronic transfer
of immediately available funds received not later than 1:00 p.m. (New York City
time) on the day when due in lawful money of the United States of America to
the applicable Co-Agent at its address specified in Schedule 14.2, and, to the
extent such payment is for the account of any Lender, the applicable Co-Agent
shall promptly disburse such funds to the appropriate Lender(s) in its Group. 

8

                    (b)
Late Payments. To the extent permitted by law, upon demand, the Borrower
or the Servicer (on the Borrower’s behalf), as applicable, shall pay to the
applicable Co-Agent for the account of each Person in its Group to whom payment
of any Obligation is due, interest on all amounts not paid or deposited by 1:00
p.m. (New York City time) on the date when due (without taking into account any
applicable grace period) at the Default Rate. 

                    (c)
Method of Computation. All computations of interest at the Alternate
Base Rate or the Default Rate shall be made on the basis of a year of 365 (or,
when appropriate, 366) days for the actual number of days (including the first
day but excluding the last day) elapsed. All other computations of interest,
and all computations of Servicer’s Fee, any per
annum fees payable under Section 4.1 and any other per annum fees payable by the Borrower to
the Lenders, the Servicer or any of the Agents under the Loan Documents shall
be made on the basis of a year of 360 days for the actual number of days
(including the first day but excluding the last day) elapsed. 

                    (d)
Avoidance or Rescission of Payments. To the maximum extent permitted by
applicable law, no payment of any Obligation shall be considered to have been
paid if at any time such payment is rescinded or must be returned for any
reason. 

          Section
2.6 Non-Receipt of Funds by the Co Agents. Unless a Lender notifies its
Co-Agent prior to the date and time on which it is scheduled to fund a Loan
that it does not intend to fund, such Co-Agent may assume that such funding
will be made and may, but shall not be obligated to, make the amount of such
Loan available to the intended recipient in reliance upon such assumption. If
such Lender has not in fact funded its Loan proceeds to the applicable
Co-Agent, the recipient of such payment shall, on demand by such Co-Agent,
repay to such Co-Agent the amount so made available together with interest
thereon in respect of each day during the period commencing on the date such
amount was so made available by such Co-Agent until the date such Co-Agent
recovers such amount at a rate per annum
equal to the Federal Funds Rate for such day. 

ARTICLE III. 

SETTLEMENTS

          Section
3.1 Reporting. 

                    (a)
Monthly Reports. Not later than the Monthly Reporting Date in each
calendar month hereafter, the Servicer shall deliver to each of the Co-Agents,
a Monthly Report accompanied by an electronic file in a form reasonably
satisfactory to each of the Co-Agents; provided, however, that if an Unmatured
Default or an Event of Default shall exist and be continuing, each of the
Co-Agents may request that a computation of the Borrowing Base also be made on
a date that is not a Monthly Reporting Date and, so long as such request is not
made on or within 5 Business Days prior to the last day of any calendar month,
the Servicer agrees to provide such computation within 3 Business Days after
such request. 

                    (b)
Weekly Reports; Right to Request Cash Collateral Payment. Upon written
request of the Administrative Agent, not later than each Weekly Reporting Date
occurring at least 14 days after the Servicer’s receipt of such request and
continuing until the Administrative 

9

Agent gives
written notice that it no longer desires Weekly Reports, the Servicer shall
deliver to each of the Co-Agents, a Weekly Report of the dollar amount of cash
collections and the number of requisitions, in each case, for the second preceding
week (the “Report Week”). If the dollar amount of cash Collections or the
number of requisitions for the Report Week is less than 50% of the arithmetic
average of the corresponding figures for the four immediately preceding Report
Weeks, upon request of either of the Co-Agents, the Servicer shall provide a
written computation of the Cash Collateral Payment within 3 Business Days after such request. 

                    (c)
Interest; Other Amounts Due. At or before 12:00 noon (New York City
time) on the Business Day before each Settlement Date, each of the Co-Agents
shall notify the Borrower and the Servicer of (i) the aggregate principal
balance of all Loans that are then outstanding from its Constituents, and (ii)
the aggregate amount of all principal, interest and fees that will be due and
payable by the Borrower to such Co-Agent for the account of such Co-Agent or
its Constituents on such Settlement Date. 

          Section
3.2 Turnover of Collections. Without limiting any Agent’s or Lender’s
recourse to the Borrower for payment of any and all Obligations: 

	
  

 	
  

 
	
  

 	
           (a)
 If any Monthly Report reveals that a mandatory prepayment is required under
 Section 1.5(b), (c) or (d), not later than the 1:00 p.m. (New York City time)
 on the next succeeding Settlement Date, the Servicer shall turn over to each
 applicable Co-Agent, for distribution to its Constituents, a portion of the
 Collections equal to the amount of such required mandatory prepayment; 

 
	
  

 	
  

 
	
  

 	
           (b)
 If, on any Settlement Date, any Loans are to be voluntarily prepaid in
 accordance with Section 1.5(a), or if the aggregate principal amount of the
 Advances outstanding is to be reduced, the Servicer shall turn over to each
 of the Co-Agents, for distribution to its Constituents, a portion of the
 Collections equal to the Groups’ respective Percentages of the aggregate
 amount of such voluntary prepayment or reduction; and 

 
	
  

 	
  

 
	
  

 	
           (c)
 In addition to, but without duplication of, the foregoing, on (i) each
 Settlement Date and (ii) each other date on which any principal of or
 interest on any of the Loans becomes due (whether by acceleration or
 otherwise) and, in the case of principal, has not been reborrowed pursuant to
 Section 1.1 (if permitted), the Servicer shall turn over to each of the
 Co-Agents, for distribution to their respective Constituents, the Groups’
 respective Percentages of a portion of the Collections equal to the aggregate
 amount of all other Obligations that are due and owing on such date. If the
 Collections and proceeds of new Loans are insufficient to make all payments
 required under clauses (a), (b) and (c) and to pay the Servicer’s Fees and,
 if applicable, all expenses due and owing to any replacement Servicer under
 Section 8.1(d) (all of the foregoing, collectively, the “Required Amounts”)
 and the Borrower has made any Demand Advances, the Borrower shall make demand
 upon Quest Diagnostics for payment of the Demand Advances in an amount equal
 to the lesser of the Required Amounts or the aggregate outstanding principal
 balance of such Demand Advances (plus any accrued and unpaid interest
 thereon) and, upon receipt of any such amounts, the Borrower shall pay them
 to each of 

 

10

	
  

 	
  

 
	
  

 	
 the
 Co-Agents, ratably in accordance with their respective Groups’ Percentages,
 for distribution in accordance with this Section 3.2. 

 
	
  

 	
  

 
	
  

 	
           (d)
 If the aggregate amount of Collections and payments on Demand Advances
 received by the Co-Agents on any Settlement Date are insufficient to pay all
 Required Amounts, the aggregate amount received shall be applied to the items
 specified in the subclauses below, in the order of priority of such
 subclauses: 

 

                    (i)
to any accrued and unpaid interest on the Loans that is then due and owing,
including any previously accrued interest which was not paid on its applicable
due date; 

                    (ii)
if the Servicer is not the Borrower or an Affiliate thereof, to any accrued and
unpaid Servicer’s Fee that is then due and owing to such Servicer, together
with any invoiced expenses of the Servicer due and owing pursuant to Section
8.1(d); 

                    (iii)
to the Unused Fee and the Usage Fee accrued during such Settlement Period, plus
any previously accrued Unused Fee and Usage Fee not paid on a prior Settlement
Date; 

                    (iv)
to the payment of the principal of any Loans that are then due and owing; 

                    (v)
to other Obligations that are then due and owing; 

                    (vi)
if the Servicer is the Borrower, Quest Diagnostics or one of their respective
Affiliates, to the accrued and unpaid Servicer’s Fee; and 

                    (vii)
the balance, if any, to the Borrower. 

	
  

 	
  

 
	
  

 	
           (e)
 If the Servicer is ever required to deliver a computation of the Cash
 Collateral Payment pursuant to Section 3.1(b), not later than one (1)
 Business Day after delivery of such computation, the Borrower shall pay to
 the applicable Co-Agent an amount equal to its Group’s Percentage of the Cash
 Collateral Payment to be invested in Permitted Investments selected by such
 Co-Agent but held as Collateral for the Obligations until the next Settlement
 Date pending distribution in accordance with Section 3.2(d). If the Borrower
 lacks sufficient funds to make any such Cash Collateral Payment, in whole or
 in part, the Borrower shall make immediate demand upon Quest Diagnostics for
 payment of any Demand Advances that are then outstanding, and, upon receipt
 of any such shortfall amount, the Borrower shall pay each Group’s Percentage
 of such shortfall amount to the applicable Co-Agent for deposit into a cash
 collateral account to be invested in Permitted Investments selected by the
 applicable Co-Agent but held as Collateral for the Obligations until the next
 Settlement Date pending distribution in accordance with Section 3.2(d). 

 
	
  

 	
  

 
	
  

 	
           (f)
 In addition to, but without duplication of, the foregoing, on (i) each
 Settlement Date and (ii) each other date on which any principal of or
 interest on any of the Loans becomes due (whether by acceleration pursuant to
 Section 10.2(a) or 10.2(b) or otherwise), the Servicer shall turn over to
 each of the Co-Agents, for distribution to the Lenders, a portion of the
 Collections equal to the aggregate amount of all Obligations that are due and
 owing on such date. 

 

11

          Section
3.3 Non-Distribution of Servicer’s Fee. Each of the Agents and the other
Secured Parties hereby consents to the retention by the Servicer of a portion
of the Collections equal to the Servicer’s Fee (and, if applicable, any
invoiced expenses of such Servicer that are due and owing pursuant to Section
8.1(d)) so long as the Collections received by the Servicer are sufficient to
pay all amounts pursuant to Section 3.2 of a higher priority as specified in
such Section. 

          Section
3.4 Deemed Collections. If as of the last day of any Settlement Period: 

	
  

 	
  

 
	
  

 	
           (a)
 the outstanding aggregate balance of the Net Receivables as reflected in the
 preceding Monthly Report (net of any positive adjustments) has been reduced
 for any of the following reasons: 

 

                    (i)
as a result of any rejected services, any cash discount or any other adjustment
by the applicable Originator or any Affiliate thereof (regardless of whether
the same is treated by such Originator or Affiliate as a write-off), or as a
result of any surcharge or other governmental or regulatory action, or 

                    (ii)
as a result of any setoff or breach of the underlying agreement in respect of
any claim by the Obligor thereof (whether such claim arises out of the same or
a related or an unrelated transaction), or 

                    (iii)
on account of the obligation of the applicable Originator or any Affiliate
thereof to pay to the related Obligor any rebate or refund, or 

                    (iv)
the Unpaid Net Balance of any Receivable is less than the amount included in
calculating the Net Pool Balance for purposes of any Monthly Report (for any
reason other than such Receivable becoming a Defaulted Receivable), or 

	
  

 	
  

 
	
  

 	
           (b)
 any of the representations or warranties of the Borrower set forth in Section
 6.1(j), (l) or (p) was not true when made with respect to any Receivable, or
 any of the representations or warranties of the Borrower set forth in Section
 6.1(l) is no longer true with respect to any Receivable, 

 

then, in such
event, the Borrower shall be deemed to have received a Collection in an amount
equal to (A) the amount of such reduction, cancellation or overstatement, in
the case of the preceding clauses (a)(i), (a)(ii), (a)(iii) and (a)(iv), and
(B) in the full amount of the Unpaid Net Balance of such Receivable in the case
of the preceding clause (b). 

ARTICLE IV.

FEES AND YIELD PROTECTION

          Section
4.1 Fees. Quest Diagnostics or the Borrower, as applicable, shall pay to
each of the Agents and the Lenders certain fees from time to time in amounts
and payable on such dates as are set forth in the Fee Letters. 

12

          Section
4.2 Yield Protection. 

                    (a)
If any Regulatory Change occurring after the date hereof: 

                    (i)
shall subject an Affected Party to any Tax, duty or other charge with respect
to its Obligations or, as applicable, its Commitment or its Liquidity
Commitment, or shall change the basis of taxation of payments to the Affected
Party of any Obligations, owed to or funded in whole or in part by it or any
other amounts due under this Agreement in respect of its Obligations or, as
applicable, its Commitment or its Liquidity Commitment except for (A) Taxes
based on, or measured by, net income or net profits, or changes in the rate of
Tax on or determined by reference to the overall net income or net profits, of
such Affected Party imposed by the United States of America, by the
jurisdiction in which such Affected Party’s principal executive office and/or
its applicable lending office is located and, if such Affected Party’s
principal executive office or its applicable lending office is not in the
United States of America, by the jurisdiction where such Affected Party’s
principal office or applicable lending office is located, (B) franchise Taxes,
Taxes on, or in the nature of, doing business Taxes or capital Taxes, or (C)
withholding Taxes required for payments made to any foreign entity (other than
withholding Taxes imposed by the United States as a result of a change in law
after the date hereof and before such foreign entity issues its Commitment or
Liquidity Commitment or becomes an assignee of a Lender hereunder), unless such
foreign entity fails to deliver to each of the Co-Agents and the Borrower an
accurate IRS Form W-8BEN or W-8ECI (or the applicable successor form), as
applicable; or 

                    (ii)
shall impose, modify or deem applicable any reserve that was not included in
the computation of the applicable Interest Rate, or any special deposit or
similar requirement against assets of any Affected Party, deposits or
obligations with or for the account of any Affected Party or with or for the
account of any affiliate (or entity deemed by the Federal Reserve Board to be
an affiliate) of any Affected Party, or credit extended by any Affected Party;
or 

                    (iii)
shall affect the amount of capital required or expected to be maintained by any
Affected Party; or 

                    (iv)
shall impose any other condition affecting any Obligation owned or funded in
whole or in part by any Affected Party, or its rights or obligations, if any,
to make Loans or Liquidity Fundings; or 

                    (v)
shall change the rate for, or the manner in which the Federal Deposit Insurance
Corporation (or a successor thereto) assesses deposit insurance premiums or
similar charges; or 

                    (vi)
shall require any Conduit to be consolidated for financial accounting purposes
with any other Person; 

and the result
of any of the foregoing is or would be: 

	
  

 	
  

 
	
  

 	
           (x)
 to increase the cost to or to impose a cost on (I) an Affected Party funding
 or making or maintaining any Loan, any Liquidity Funding, or any commitment
 of such 

 

13

	
  

 	
  

 
	
  

 	
 Affected
 Party with respect to any of the foregoing, or (II) any of the Agents for
 continuing its or the Borrower’s relationship with any Affected Party, in
 each case, in an amount deemed to be material by such Affected Party, 

 
	
  

 	
  

 
	
  

 	
           (y)
 to reduce the amount of any sum received or receivable by an Affected Party
 under this Agreement or under the Liquidity Agreement, or 

 
	
  

 	
  

 
	
  

 	
           (z)
 to reduce the rate of return on such Affected Party’s capital as a
 consequence of its Commitment, its Liquidity Commitment or the Loans made by
 it to a level below that which such Affected Party could have achieved but
 for the occurrence of such circumstances, 

 

then, within
thirty days after demand by such Affected Party (which demand shall be made not
more than 90 days after the date on which the Affected Party becomes aware of
such Regulatory Change and shall be accompanied by a certificate setting forth,
in reasonable detail, the basis of such demand and the methodology for
calculating, and the calculation of, the amounts claimed by the Affected
Party), the Borrower shall pay directly to such Affected Party such additional
amount or amounts as will compensate such Affected Party for such actual
additional cost, actual increased cost or actual reduction. 

	
  

 	
  

 
	
  

 	
           (b)
 Each Affected Party will promptly notify the Borrower, the Administrative
 Agent and the applicable Co-Agent of any event of which it has knowledge
 (including any future event that, in the judgment of such Affected Party, is
 reasonably certain to occur) which will entitle such Affected Party to
 compensation pursuant to this Section 4.2; provided, however, no failure to give
 or delay in giving such notification shall adversely affect the rights of any
 Affected Party to such compensation unless such notification is given more
 than 90 days after the Affected Party becomes aware of such Regulatory
 Change. 

 
	
  

 	
  

 
	
  

 	
           (c)
 In determining any amount provided for or referred to in this Section 4.2, an
 Affected Party may use any reasonable averaging and attribution methods (consistent
 with its ordinary business practices) that it (in its reasonable discretion)
 shall deem applicable. Any Affected Party when making a claim under this
 Section 4.2 shall submit to the Borrower the above-referenced certificate as
 to such actual increased cost or actual reduced return (including calculation
 thereof in reasonable detail), which statement shall, in the absence of
 demonstrable error, be conclusive and binding upon the Borrower. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Each of the Lenders agrees, and to require each Affected Party to agree that,
 with reasonable promptness after an officer of such Lender or such Affected
 Party responsible for administering the Transaction Documents becomes aware
 that it has become an Affected Party under this Section 4.2, is entitled to
 receive payments under this Section 4.2, or is or has become subject to U.S.
 withholding Taxes payable by any Loan Party in respect of its investment
 hereunder, it will, to the extent not inconsistent with any internal policy
 of such Person or any applicable legal or regulatory restriction, (i) use all
 reasonable efforts to make, fund or maintain its commitment or investment
 hereunder through another branch or office of such Affected Party, or (ii)
 take such other reasonable measures, if, as a result thereof, the
 circumstances which would cause such 

 

14

	
  

 	
  

 
	
  

 	
 Person to be
 an Affected Party under this Section 4.2 would cease to exist, or the
 additional amounts which would otherwise be required to be paid to such
 Person pursuant to this Section 4.2 would be reduced, or such withholding
 Taxes would be reduced, and if the making, funding or maintaining of such
 commitment or investment through such other office or in accordance with such
 other measures, as the case may be, would not otherwise adversely affect such
 commitment or investment or the interests of such Person; provided that such
 Person will not be obligated to utilize such other lending office pursuant to
 this Section 4.2 unless the Borrower agrees to pay all incremental expenses
 incurred by such Person as a result of utilizing such other office as
 described in clause (i) above. 

 
	
  

 	
  

 
	
  

 	
           (e)
 If any Lender makes a claim for compensation under this Section 4.2, the
 Borrower may propose an Eligible Assignee to the applicable Co-Agent who is willing
 to accept an assignment of such Lender’s Commitment, Liquidity Commitment and
 outstanding Loans, as applicable, together with each of its other rights and
 obligations under the Transaction Documents; provided that any expenses or other
 amounts which would be owing to such Lender pursuant to any indemnification
 provision hereof (including, if applicable, Section 4.3) shall be payable by
 the Borrower as if the Borrower had prepaid the Loans of the assigning
 Lenders rather than such assigning Lenders having assigned their respective
 interests hereunder. If such proposed Eligible Assignee is acceptable to the
 applicable Co-Agent (who shall not unreasonably withhold or delay its
 approval), the claiming Lender will be obligated to assign all of its rights
 and obligations to such proposed Eligible Assignee within ten (10) Business
 Days after such Co-Agent gives its consent to such proposed Eligible
 Assignee. In addition, if one or more Affected Parties in one of the Groups
 (but not both of the Groups) requests compensation under Section 4.2(a), the
 Borrower shall have the right to (i) require all members of the Group to
 which such claiming part to assign all, but not less than all, of their
 Commitment(s) and outstanding Obligations, as applicable, by entering into
 written assignments with one or more Eligible Assignees identified by the
 Borrower, or (ii) to pay in full of all Obligations (if any) owing to such
 Group and terminate its Commitment(s) (as applicable). Each assignment
 pursuant to clause (i) above to an Eligible Assignee (which may include a
 Constituent of the other Co-Agent) shall become effective on the date
 specified therein subject to receipt of payment in full on such date for all
 Obligations, if any, owing to the Group being replaced, and the Group being
 replaced shall make the requested assignments; provided that any expenses or other
 amounts which would be owing to such Group pursuant to any indemnification
 provision hereof shall be payable by the Borrower as if the Borrower had
 prepaid the Loans of the assigning Group rather than the members of such
 Group having assigned their respective interests hereunder 

 

          Section
4.3 Funding Losses. In the event that any Lender shall actually incur
any actual loss or expense (including any actual loss or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired
by such Lender to make or maintain any Loan or Liquidity Funding) as a result
of (i) any payment of principal with respect to such Lender’s Loan or Liquidity
Funding being made on any day other than the scheduled last day of an
applicable CP Tranche Period or Interest Period with respect thereto,
including, without limitation, because of a payment required by Section 1.4 or
a prepayment required by Section 

15

1.5(b), (c) or
(d) (it being understood that the foregoing shall not apply to any Alternate
Base Rate Loans), or (ii) any Loan not being made in accordance with a request
therefor under Section 2.1, then, upon written notice from the applicable Co-Agent
to the Administrative Agent, the Borrower and the Servicer, the Borrower shall
pay to the Servicer, and the Servicer shall pay to the applicable Co-Agent for
the account of such Lender, the amount of such actual loss or expense; provided, however, that in the case of any Pool Funded
Conduit, nothing in this Section 4.3 shall duplicate any amount paid to it as
Broken Funding Costs. Such written notice (which shall include the methodology
for calculating, and the calculation of, the amount of such actual loss or
expense, in reasonable detail) shall, in the absence of demonstrable error, be
conclusive and binding upon the Borrower and the Servicer. 

ARTICLE V.

CONDITIONS OF ADVANCES

          Section
5.1 Conditions Precedent to Restatement Effectiveness. Effectiveness of
this Agreement shall be subject to the conditions precedent that on such date:
(a) each of the statements contained in Sections 5.2(a), (b) and (c) shall be
true, and (b) the Administrative Agent shall have received not less than two (2)
originals (except in the case of item (xi) below) of each of the following
documents dated the date hereof: 

                    (i)
An assignment and assumption agreement by and between Atlantic and Gotham with
respect to Atlantic’s right, title and interest in, to and under the Existing
Agreement and the related Transaction Documents, duly executed by Atlantic and
Gotham and acknowledged by Calyon New York Branch, BTMU and the Borrower; 

                    (ii)
An assignment and assumption agreement by and between Calyon New York Branch
and BTMU with respect to Calyon New York Branch’s right, title and interest in,
to and under the Existing Agreement and the related Transaction Documents, duly
executed by Calyon New York Branch, BTMU and the Borrower; 

                    (iii)
An amendment to the Existing Agreement replacing Wachovia Bank, National
Association with BTMU as Administrative Agent, duly executed by the parties to
the Existing Agreement remaining after giving effect to the assignment and assumption
agreements described in clauses (i) and (ii) above; 

                    (iv)
This Agreement, duly executed by the parties hereto; 

                    (v)
A certificate of the Secretary or Assistant Secretary of each Loan Party
certifying (A) the names and true signatures of the officers authorized on its
behalf to sign this Agreement and the other Transaction Documents to be
delivered by it hereunder (on which certificate the Agents and the Lenders may
conclusively rely until such time as the Administrative Agent shall receive
from such Loan Party a revised certificate meeting the requirements of this
subsection (ii)), (B) (x) an attached copy of the Organic Documents of such
Loan Party, or (y) that there has been no change in the Organic Documents of
such Loan Party since the date of the Existing Agreement, and (C) an attached
copy of resolutions of such Loan Party’s board of directors authorizing its
execution and delivery of this Agreement; 

16

                    (vi)
Opinions dated the date hereof addressed to the Agents and the Lenders as to
(1) the existence of a “true sale” or “true contribution” of the Receivables
from each of the Originators to the Borrower under the Sale Agreement, and (2)
the inapplicability of the doctrine of substantive consolidation to the
Borrower with respect to each of the Originators in connection with any
bankruptcy proceeding involving any of the Originators or the Borrower; 

                    (vii)
One or more favorable opinions of counsel to the Loan Parties covering the
matters set forth in of Exhibit 5.1(h); 

                    (viii)
Copies in form suitable for filing of any and all financing statements and
amendments thereto necessary to ensure that the Borrower continues to have a
perfected ownership interest or perfected first priority security interest in
the Receivables and Related Assets conveyed to it under the Sale Agreement and
the Administrative Agent, for the benefit of the Secured Parties, continues to
have a perfected first priority security interest in the Collateral hereunder; 

                    (ix)
A Monthly Report, prepared as of the Cut-Off Date of April 30, 2008; 

                    (x)
An amendment to the VFCC Liquidity Agreement, in form and substance
satisfactory to the VFCC Agent, duly executed by the parties thereto, reducing
the Liquidity Commitments thereunder to $127,500,000 and extending such
Liquidity Commitments through the VFCC Group Termination Date; 

                    (xi)
The Gotham Fee Letter, duly executed by the parties thereto, together with
payment of any and all fees due on or prior to the date hereof; 

                    (xii)
The VFCC Fee Letter, duly executed by the parties thereto, together with
payment of any and all fees due on or prior to the date hereof; 

                    (xiii)
Collection Account Agreements (or amendments to or assignments of the
Collection Account Agreements executed in connection with the Existing
Agreement) with respect to each of the Collection Accounts, duly executed by
the Borrower, the applicable Originator or the Servicer (as applicable), the
applicable Collection Bank, and the Administrative Agent; and 

                    (xiv)
A certificate of an Authorized Officer of each of the Loan Parties certifying
that as of the date hereof, no Event of Default or Unmatured Event of Default
exists and is continuing. 

          Section
5.2 Conditions Precedent to All Advances. Each Advance (including the
initial Advance under this Agreement) shall be subject to the further
conditions precedent that on the applicable Borrowing Date, each of the
following statements shall be true (and the Borrower, by accepting the amount
of such Advances or by receiving the proceeds of any Loan comprising such
Advance, and each other Loan Party, upon such acceptance or receipt by the
Borrower, shall be deemed to have certified that): 

	
  

 	
  

 
	
  

 	
           (a)
 the representations and warranties contained in Section 6.1 are correct in
 all respects on and as of the date of such Advance as though made on and as
 of such day and 

 

17

	
  

 	
  

 
	
  

 	
 shall be
 deemed to have been made on such day (except for such representations which
 speak only as of an earlier date), 

 
	
  

 	
  

 
	
  

 	
           (b)
 no event has occurred and is continuing, or would result from such Advance,
 that constitutes an Event of Default or Unmatured Default, 

 
	
  

 	
  

 
	
  

 	
           (c)
 the Termination Date shall not have occurred, 

 
	
  

 	
  

 
	
  

 	
           (d)
 if such Advance is to be funded, in whole or in part, by either Conduit’s
 Liquidity Banks, such Conduit shall have Liquidity Banks in its Group whose
 Scheduled Termination Dates have not occurred with sufficient undrawn
 Commitments in an aggregate amount sufficient to fund the requisite portion
 of such Advance, and 

 
	
  

 	
  

 
	
  

 	
           (e)
 each of the Co-Agents shall have received (with such receipt to be determined
 in accordance with Section 14.2 of this Agreement) a timely Borrowing Request
 in accordance with Section 2.1; 

 

provided, however,
the absence of the occurrence and continuance of an Unmatured Default shall not
be a condition precedent to any Advance which does not increase the aggregate
principal amount of all Advances outstanding over the aggregate outstanding
principal balance of the Advances as of the opening of business on such day. 

ARTICLE VI. 

REPRESENTATIONS AND WARRANTIES

          Section
6.1 Representations and Warranties of Loan Parties. Each Loan Party, as
to itself, represents and warrants to the Agents and the Lenders as follows: 

                    (a)
Ownership of the Borrower. Quest Diagnostics owns, directly or
indirectly, all the issued and outstanding Equity Interests of the Borrower,
and all of such Equity Interests are fully paid and non-assessable and are free
and clear of any Liens. 

                    (b)
Existence; Due Qualification; Permits. Each of the Loan Parties: (i) is
a corporation duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization; (ii) has all requisite corporate
power and authority necessary to own its Property and carry on its business as
now being conducted; (iii) is qualified to do business and is in good standing
in all jurisdictions in which the nature of the business conducted by it makes
such qualification necessary; and (iv) is in compliance with all Requirements
of Law, except in the case of clauses (i), (ii), (iii) and (iv) where the
failure thereof individually or in the aggregate could not reasonably be
expected to have a Material Adverse Effect. The Loan Parties hold all
governmental permits, licenses, authorizations, consents and approvals necessary
for the Loan Parties to own, lease, and operate their respective Properties and
to operate their respective businesses as now being conducted (collectively,
the “Permits”),
except for Permits the failure to obtain which would not have a Material Adverse
Effect. None of the Permits has been modified in any way that is reasonably
likely to have a Material Adverse Effect. All Permits are in full force and
effect except where the failure of such to be in full force and effect would
not have a Material Adverse Effect. 

18

                    (c)
Action. Each Loan Party has all necessary corporate or other entity
power, authority and legal right to execute, deliver and perform its
obligations under each Transaction Document to which it is a party and to
consummate the transactions herein and therein contemplated; the execution,
delivery and performance by each Loan Party of each Transaction Document to
which it is a party and the consummation of the transactions herein and therein
contemplated have been duly authorized by all necessary corporate action on its
part; and this Agreement has been duly and validly executed and delivered by
each Loan Party and constitutes, and each of the other Transaction Documents to
which it is a party when executed and delivered by such Loan Party will
constitute, its legal, valid and binding obligation, enforceable against each
Loan Party in accordance with its terms, except as such enforceability may be
limited by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or similar laws of general applicability from time to time in effect
affecting the enforcement of creditors’ rights and remedies and (ii) the
application of general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law). 

                    (d)
Absence of Default. No Unmatured Default or Event of Default has
occurred and is continuing. 

                    (e)
Noncontravention. 

                    (i)
None of the execution, delivery and performance by a Loan Party of any
Transaction Document to which it is a party nor the consummation of the
transactions herein and therein contemplated will (A) conflict with or result
in a breach of, or require any consent (which has not been obtained and is in
full force and effect) under, an Organic Document of such Loan Party or any
applicable Requirement of Law or any order, writ, injunction or decree of any
Governmental Authority binding on such Loan Party, or any term or provision of
any Contractual Obligation of such Loan Party or (B) constitute (with due
notice or lapse of time or both) a default under any such Contractual
Obligation, or (C) result in the creation or imposition of any Lien (except for
the Liens created pursuant to the Transaction Documents) upon any Property of
such Loan Party pursuant to the terms of any such Contractual Obligation,
except with respect to each of the foregoing which could not reasonably be
expected to have a Material Adverse Effect and which would not subject any
Lender to any material risk of damages or liability to third parties. 

                    (ii)
No Loan Party is in default under any material contract or agreement to which
it is a party or by which it is bound, nor, to such Loan Party’s knowledge,
does any condition exist that, with notice or lapse of time or both, would
constitute such default, excluding in any case such defaults that are not
reasonably likely to have a Material Adverse Effect. 

                    (f)
No Proceedings. Except as described in Quest Diagnostics’ Form 10-K for
the fiscal year ended December 31, 2007 and all filings made with the SEC under
the Exchange Act by any Loan Party subsequent thereto prior to the date of this
Agreement (copies of which have been provided to each of the Co-Agents or made
available on EDGAR): 

                    (i)
There is no Proceeding (other than any qui
tam Proceeding, to which this Section is limited to the best of each
Loan Party’s knowledge) pending against, or, to the knowledge of either Loan
Party, threatened in writing against or affecting, any Loan Party or any 

19

of its
respective Properties before any Governmental Authority that, if determined or
resolved adversely to such Loan Party, could reasonably be expected to have a
Material Adverse Effect. 

                    (ii)
There is (A) no unfair labor practice complaint pending against any Loan Party
or, to the best knowledge of each Loan Party, threatened against such Loan
Party, before the National Labor Relations Board or any other Governmental
Authority, and no grievance or arbitration proceeding arising out of or under
any collective bargaining agreement is so pending against such Loan Party or,
to the best knowledge of such Loan Party after due inquiry, threatened against such
Loan Party, (B) no strike, labor dispute, slowdown or stoppage pending against
such Loan Party or, to the best knowledge of Borrower, after due inquiry,
threatened against such Loan Party and (C) to the best knowledge of Borrower
after due inquiry, no union representation question existing with respect to
the employees of such Loan Party and, to the best knowledge of such Loan Party,
no union organizing activities are taking place, except such as would not, with
respect to any matter specified in clause (A), (B) or (C) above, individually
or in the aggregate, have a Material Adverse Effect. 

                    (g)
Taxes. 

                    (i)
Except as would not have a Material Adverse Effect: (A) all tax returns,
statements, reports and forms (including estimated Tax or information returns)
(collectively, the “Tax
Returns”) required to be filed with any taxing authority by, or
with respect to, each Loan Party have been timely filed in accordance with all
applicable laws; (B) each Loan Party has timely paid or made adequate provision
for payment of all Taxes shown as due and payable on Tax Returns that have been
so filed, and, as of the time of filing, each Tax Return was accurate and
complete and correctly reflected the facts regarding income, business, assets,
operations, activities and the status of each Loan Party (other than Taxes
which are being contested in good faith and for which adequate reserves are
reflected on the financial statements delivered hereunder); and (C) each Loan
Party has made adequate provision for all Taxes payable by such Loan Party for
which no Tax Return has yet been filed. 

                    (ii)
Except as set forth in Quest Diagnostics’ Annual Report on Form 10-K for the
year ended December 31, 2007: (A) as of the date hereof no Loan Party is a
member of an affiliated group of corporations within the meaning of Section
1504 of the Code other than an affiliated group of corporations of which Quest
Diagnostics is the common parent; and (B) there are no material tax sharing or
tax indemnification agreements under which Borrower is required to indemnify
another party for a material amount of Taxes other than, in the case of Quest
Diagnostics, the tax indemnity contained in the Merger Agreement dated as of
August 16,1999, between Glaxo Smith Kline (formerly known as Smith Kline
Beecham) and Quest Diagnostics. 

                    (h)
Government Approvals. No authorizations, approvals or consents of, and
no filings or registrations with, any Governmental Authority or any securities
exchange are necessary for the execution, delivery or performance by any Loan
Party of the Transaction Documents to which it is a party or for the legality,
validity or enforceability hereof or thereof or for the consummation of the
transactions herein and therein contemplated, except for filings and recordings
in respect of the Liens created pursuant to the Transaction Documents (all of
which have been duly made or delivered to the Administrative Agent’s counsel
for filing or may be prepared by the Administrative Agent for filing in
accordance with the terms of this Agreement) 

20

and except for
consents, authorizations and filings that have been obtained or made and are in
full force and effect or the failure of which to obtain would not have a
Material Adverse Effect. 

                    (i)
Financial Statements and Absence of Certain Material Adverse Changes. 

                    (i)
The information, reports, financial statements, exhibits and schedules
furnished in writing by either of the Loan Parties to each of the Co-Agents or
Lenders in connection with the negotiation, preparation or delivery of the
Transaction Documents, including Quest Diagnostics’ Annual Report on Form 10-K
for the year ended December 31, 2007, but in each case excluding all projections,
whether prior to or after the date of this Agreement, when taken as a whole, do
not, as of the date such information was furnished, contain any untrue
statement of material fact or omit to state a material fact necessary in order
to make the statements herein or therein, in light of the circumstances under
which they were made, not materially misleading; it being understood that
certain financial information so furnished, including without limitation
information contained in the Weekly Reports and Monthly Reports, has not been
prepared in accordance with GAAP and might vary materially from information
prepared and presented in accordance with GAAP on the same subject matter. Each
Loan Party understands that all such statements, representations and warranties
shall be deemed to have been relied upon by the Lenders as a material
inducement to make each extension of credit hereunder. 

                    (ii)
From December 31, 2007 through and including the date hereof, there has been no
material adverse change in Quest Diagnostics’ consolidated financial condition,
business or operations. Since December 31, 2007, there has been no material
adverse change in Quest Diagnostics’ consolidated financial condition, business
or operations that has had, or would reasonably be expected to have, a material
adverse effect upon its ability to perform its obligations, as an Originator or
as Servicer, under the Transaction Documents when and as required, and no
material adverse effect on the collectibility of any material portion of the
Receivables. 

                    (iii)
Since the date hereof, no event has occurred which would have a Material
Adverse Effect. 

                    (j)
Nature of Receivables. Each Receivable constitutes an Account or a
Payment Intangible. 

                    (k)
Margin Regulations. The use of all funds obtained by such Loan Party
under this Agreement or any other Transaction Document will not conflict with
or contravene any of Regulation T, U or X. 

                    (l)
Title to Receivables and Quality of Title. 

                    (i)
Each Receivable has been acquired by the Borrower from an Originator in
accordance with the terms of the Sale Agreement, and the Borrower has thereby
irrevocably obtained good title to such Receivable and its Related Assets, free
and clear of all Adverse Claims (except as created under the Transaction
Documents), and the Borrower has the legal right to sell and encumber, such
Receivable and the Related Assets. Without limiting the foregoing, there have
been duly filed or delivered to the Administrative Agent’s counsel in form
suitable for filing, all financing statements and financing statements
amendments or other similar 

21

 instruments or documents necessary under the
UCC of all appropriate jurisdictions to perfect the Borrower’s ownership
interest in such Receivable. 

                    (ii)
This Agreement creates a valid security interest in the Collateral in favor of
the Administrative Agent, for the benefit of the Secured Parties, and, upon
filing of the financing statements and amendments described in clause (i),
together with UCC termination statements delivered under the Receivables Sale
Agreement, such security interest will be a first priority perfected security
interest. 

                    (iii)
No financing statement executed or otherwise authorized by any Originator or
Loan Party or other instrument similar in effect covering any portion of the
Collateral is on file in any recording office except such as may be filed (A)
in favor of an Originator in accordance with the Contracts, (B) in favor of the
Borrower and its assigns in connection with the Sale Agreement, (C) in favor of
the Administrative Agent in accordance with this Agreement, (D) in connection
with any Lien arising solely as the result of any action taken by the
Administrative Agent or one of the Secured Parties, or (E) which shall have
been terminated or amended pursuant to UCC financing statements delivered to or
prepared by the Administrative Agent hereunder in form suitable for filing in
all applicable jurisdictions. 

                    (m)
Accurate Reports. No Monthly Report, Weekly Report or computation of
Cash Collateral Payment (in each case, if prepared by such Loan Party, or to
the extent information therein was supplied by such Loan Party), no other
information, exhibit, schedule or information concerning the Collateral
furnished or to be furnished verbally or in writing before or after the date of
this Agreement, by or on behalf of such Loan Party to each of the Co-Agents or
Lenders pursuant to this Agreement was inaccurate in any material respect as of
the date it was dated or (except as otherwise disclosed to each of the
Co-Agents or the Lenders at such time) as of the date so furnished, or
contained or (in the case of information or other materials to be furnished in
the future) will contain any material misstatement of fact or omitted or (in
the case of information or other materials to be furnished in the future) will
omit to state a material fact or any fact necessary to make the statements
contained therein not materially misleading in light of the circumstances made
or presented (it being understood that the Monthly Reports and Weekly Reports
are not prepared in accordance with GAAP and that reports prepared in
accordance with GAAP on the same subject matter might vary materially; and
certain reconciling information with respect to Receivables will be set forth
in the Monthly Report). 

                    (n)
Jurisdiction of Organization; Offices. Each Loan Party’s jurisdiction of
organization is correctly set forth after its name in the preamble to this
Agreement. The principal places of business and chief executive office of the
Borrower is located at the addresses set forth on Schedule 6.1(n), and the offices
where the Servicer and the Borrower keep all their Records and material
Contracts are located at the addresses specified in Schedule 6.1(n) (or at such
other locations, notified to each of the Co-Agents in accordance with Section
7.1(f), in jurisdictions where all action required by Section 8.5 has been
taken and completed). 

                    (o)
Lockboxes and Collection Accounts. 

                    (i)
One of the Loan Parties or the applicable Originator has instructed all
Obligors of all Receivables to pay all Collections thereon either (A) by mail
addressed to a Lockbox or 

22

(B) by wire
transfer or other electronic funds transfer directly to a Collection Account in
the name of the applicable Originator, as sub-servicer, or in the name of the Borrower.
Items received in the Lockboxes are deposited for collection each Business Day
into a Collection Account in the name of the applicable Originator or the
Borrower, and all collected and available funds from time to time in each
Collection Account in the name of any Originator are swept each day to a
Collection Account in the name of the Borrower. Each of the agreements
establishing and governing the maintenance of the Lockboxes and Collection
Accounts is in full force and effect, and each of the Lockboxes and Collection
Accounts is subject to a Collection Account Agreement that is in full force and
effect. 

                    (ii)
The Borrower has not granted any Person other than the Administrative Agent,
control of any Collection Account or any Lockbox, or the right to take control
of any of the foregoing at a future time or upon the occurrence of a future
event. 

                    (iii)
Except as otherwise provided in Section 7.3(d), each Collection Account
Agreement, and the name and address of each Collection Bank (together with the
account numbers of all Collection Accounts maintained with it and the address
of each Lockbox maintained with it) are set forth on Schedule 6.1(o). 

                    (p)
Eligible Receivables. Each Receivable included as an Eligible Receivable
in the Net Pool Balance in connection with any computation or recomputation of
the Borrowing Base is an Eligible Receivable on such date. 

                    (q)
ERISA. No ERISA Event has occurred or is reasonably expected to occur
which could have a Material Adverse Effect. The present value of all
accumulated benefit obligations of all underfunded Pension Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed by more than $20.0 million the fair market
value of the assets of all such underfunded Pension Plans. Each ERISA Entity is
in compliance in all material respects with the presently applicable provisions
of ERISA and the Code with respect to each Employee Benefit Plan. Using
actuarial assumptions and computation methods consistent with subpart 1 of
subtitle E of Title IV of ERISA, the aggregate liabilities of any of each ERISA
Entity to all Multiemployer Plans in the event of a complete withdrawal
therefrom, as of the close of the most recent fiscal year of each such
Multiemployer Plan, would not result in a Material Adverse Effect. All Foreign
Plans are in substantial compliance with all Requirements of Law (other than to
the extent such failure to comply would not reasonably be expected to have a
Material Adverse Effect). 

                    (r)
Names. Since its incorporation, the Borrower has not used any legal
names, trade names or assumed names other than (i) the name in which it has
executed this Agreement, and (ii) any other name to which the Administrative
Agent gives its prior written consent (which consent will not be unreasonably
withheld or delayed). 

                    (s)
Credit and Collection Policy. With respect to the Receivables originated
by each of the Originators, each of the applicable Originator, the Borrower and
the Servicer has complied in all material respects with the applicable Credit
and Collection Policy, and no change has been made to such Credit and
Collection Policy since the date of this Agreement which 

23

would be
reasonably likely to materially and adversely affect the collectibility of the
Receivables or decrease the credit quality of any newly created Receivables
except for such changes as to which each of the Co-Agents has received the
notice required under Section 7.2(h) and has given its prior written consent
thereto (which consent shall not be unreasonably withheld or delayed). 

                    (t)
Payments to Applicable Originator. With respect to each Receivable sold
or contributed to the Borrower by any Originator under the Sale Agreement, the
Borrower has given reasonably equivalent value to such Originator in
consideration for such Receivable and the Related Assets with respect thereto
and no such transfer is or may be voidable under any section of the Bankruptcy
Reform Act of 1978 (11 U.S.C. §§101 et seq.), as amended. 

                    (u)
Investment Company Act; Public Utility Holding Company Act; Other
Restrictions. No Loan Party is an “investment company”, or a company
“controlled” by an “investment company”, within the meaning of the United
States Investment Company Act of 1940, as amended. No Loan Party is a “holding
company”, or an “affiliate” of a “holding company” or a “subsidiary company” of
a “holding company”, within the meaning of the United States Public Utility
Holding Company Act of 1935, as amended. No Loan Party is subject to regulation
under any law or regulation which limits its ability to incur Indebtedness,
other than Regulation X of the Board of Governors of the Federal Reserve
System. 

                    (v)
Borrowing Base; Solvency. The Borrowing Base is at all times at least
equal to the aggregate outstanding principal balance of the Advances. As of
each Borrowing Date, after giving effect to any Loans to be borrowed on such
date, the Borrower is and will be Solvent. 

ARTICLE VII. 

GENERAL COVENANTS OF LOAN PARTIES

          Section
7.1 Affirmative Covenants of Loan Parties. From the date hereof until
the Final Payout Date, unless each of the Co-Agents shall otherwise consent in
writing: 

                    (a)
Compliance With Laws, Etc. Each Loan Party will comply with all
applicable laws, rules, regulations and orders, including those with respect to
the Receivables and related Contracts and Invoices, except, in each of the
foregoing cases, where the failure to so comply would not individually or in
the aggregate have a Material Adverse Effect. 

                    (b)
Preservation of Existence. Each Loan Party will preserve and maintain
its existence, rights, franchises and privileges in the jurisdiction of its
incorporation, and qualify and remain qualified in good standing as a foreign
corporation in each jurisdiction where the failure to preserve and maintain
such existence, rights, franchises, privileges and qualification would have a
Material Adverse Effect. 

                    (c)
Audits. Each Loan Party will, subject to compliance with applicable law:
(i) at any time and from time to time upon not less than ten (10) Business
Days’ notice (unless an Unmatured Default or Event of Default has occurred and
is continuing, in which case, not more than one (1) Business Day’s notice shall
be required) during regular business hours, permit each of the Agents or any of
its agents or representatives: (A) to examine and make copies of and abstracts
from all Records, Contracts and Invoices in the possession or under the control
of such 

24

Loan Party,
and (B) to visit the offices and properties of such Loan Party for the purpose
of examining such Records, Contracts and Invoices and to discuss matters
relating to Receivables or such Loan Party’s performance hereunder with any of
the officers or employees of such Loan Party having knowledge of such matters;
and (ii) without limiting the provisions of clause (i) above, from time to
time, at the expense of such Loan Party, permit certified public accountants or
auditors acceptable to each of the Co-Agents to conduct a review of such Loan
Party’s Contracts, Invoices and Records (each, a “Review”); provided, however, that (x) so long as
no Event of Default has occurred and is continuing, the Loan Parties shall only
be responsible for the costs and expenses of one (1) such Review in any
calendar year hereafter unless the first such Review in a calendar year
resulted in negative findings (in which case the Loan Parties shall be
responsible for the costs and expenses of two (2) such Reviews in such calendar
year). Notwithstanding the foregoing, if (x) any Loan Party requests the
approval of a new Eligible Originator who is a Material Proposed Addition or
(y) any Material Acquisition is consummated, the Loan Parties shall be
responsible for the costs and expenses of one additional Review per proposed
Material Proposed Addition or per Material Acquisition in the calendar year in
which such Material Proposed Addition is expected to occur or such Material
Acquisition is expected to be consummated if such additional Review is requested
by either of the Co-Agents.

                    (d)
Keeping of Records and Books of Account. The Servicer will maintain and
implement administrative and operating procedures (including, without
limitation, an ability to recreate essential Records evidencing the Receivables
in the event of the destruction of the originals thereof), and keep and
maintain, all Contracts, Records and other information necessary or reasonably
advisable for the collection of all Receivables (including, without limitation,
Records adequate to permit the identification as of any Business Day when
required of outstanding Unpaid Net Balances by Obligor and related debit and
credit details of the Receivables). Each of the Borrower and the Servicer shall
post all Demand Advances to its respective books in accordance with GAAP on or
before each Settlement Date. 

                    (e)
Performance and Compliance with Receivables, Invoices and Contracts.
Each Loan Party will, at its expense, timely and fully perform and comply with
all provisions, covenants and other promises, if any, required to be observed
by it under the Contracts and/or Invoices related to the Receivables except for
such failures to fully perform and comply as would not, individually or in the
aggregate, have a Material Adverse Effect. 

                    (f)
Jurisdiction of Organization; Location of Records. Each Loan Party will
keep its jurisdiction of organization, chief place of business and (at any time
while the location of its chief executive office remains germane to perfection
of any of the security interests or ownership interests purported to be
conveyed pursuant to the Transaction Documents) its chief executive office, and
the offices where it keeps its Records and material Contracts (and, to the extent
that any of the foregoing constitute instruments, chattel paper or negotiable
documents, all originals thereof), at the address(es) of the Servicer and the
Borrower referred to in Section 6.1(n) or, upon 15 days’ prior written notice
to the Administrative Agent, at such other locations in jurisdictions where all
action required by Section 8.5 shall have been taken and completed. 

                    (g)
Credit and Collection Policies. Each Loan Party will comply in all
material respects with its Credit and Collection Policy in regard to the
Receivables and the related Contracts and Invoices. 

25

                    (h)
Sale Agreement. The Borrower will perform and comply in all material
respects with all of its covenants and agreements set forth in the Sale
Agreement, and will enforce the performance by each Originator of its
respective obligations thereunder. 

                    (i)
Collections. 

                    (i)
In accordance with Section 6.1(o)(i), each of the Loan Parties will instruct
all Obligors to make all payments on Receivables directly to a Lockbox or
Collection Account in the name of the applicable Originator (as sub-servicer
for the Borrower and the Secured Parties), the Borrower or the Administrative
Agent or its designee, which is subject to a Collection Account Agreement and,
if such Collection Account is in the name of an Originator, it is swept on a
daily basis into a Collection Account in the name of the Borrower (or the
Administrative Agent or its designee) which is subject to a Collection Account
Agreement. The Borrower will cause each of the Collection Accounts that is
currently in the name of an Originator to be transferred to it and into its own
name within a reasonable period of time after the initial Advance hereunder. 

                    (ii)
If, notwithstanding the foregoing clause (i) above, any Collections are paid
directly to any Loan Party, such Loan Party shall deposit the same (with any
necessary indorsements) to a Collection Account within one (1) Business Day after
receipt thereof. 

                    (iii)
Upon demand of any of the Agents at any time following the occurrence of any
Unmatured Default or Event of Default, the Borrower or the Servicer shall
establish a segregated account at Wachovia Bank, National Association which is
subject to a perfected security interest in favor of the Administrative Agent,
for the benefit of the Secured Parties (the “Collateral Account”), into which all
deposits from time to time in the Collection Accounts, and all other Collections,
are concentrated pending application in accordance with the terms of this
Agreement to the Obligations. 

                    (j)
Further Assurances. Each of the Loan Parties shall take all necessary
action to establish and maintain (i) in favor of the Borrower, a valid and
perfected ownership interest in the Receivables and Related Assets, and (ii) in
favor of the Administrative Agent for the benefit of the Secured Parties, a
valid and perfected first priority security interest in the Collateral, including,
without limitation, taking such action to perfect, protect or more fully
evidence the security interests of the Administrative Agent as the
Administrative Agent may reasonably request. 

          Section
7.2 Reporting Requirements of Loan Parties. From the date hereof until
the Final Payout Date, unless each of the Co-Agents shall otherwise consent in
writing: 

                    (a)
Quarterly Financial Statements. (i) Quest Diagnostics will furnish to
each of the Co-Agents or make publicly available through EDGAR, as soon as
available and in any event within 60 days after the end of each of the first
three quarters of each of its fiscal years, copies of its report on SEC Form
10-Q as of the close of such fiscal quarter, and (ii) the Borrower will furnish
to each of the Co-Agents as soon as available and in any event within 60 days
after the end of each of the first three quarters of each of its fiscal years
an unaudited balance sheet and income statement of the Borrower as of the close
of such fiscal quarter, prepared in accordance 

26

with GAAP and
certified in a manner reasonably acceptable to each of the Co-Agents by the
Borrower’s chief executive officer, chief financial officer or treasurer (or an
officer acting in a similar capacity to any of the foregoing); 

                    (b)
Annual Financial Statements. Quest Diagnostics will furnish to each of
the Co-Agents or make publicly available through EDGAR, as soon as available
and in any event within 120 days after the end of each fiscal year of Quest
Diagnostics, copies of its annual report on SEC Form 10-K for such year, and
the Borrower will furnish to each of the Co-Agents as soon as available and in
any event within 120 days after the end of each fiscal year of the Borrower, an
unaudited balance sheet and income statement of the Borrower as of the close of
such fiscal year, prepared in accordance with GAAP and certified in a manner
reasonably acceptable to each of the Co-Agents by the Borrower’s chief
executive officer, chief financial officer or treasurer (or an officer acting
in a similar capacity to any of the foregoing) 

                    (c)
Reports to SEC and Exchanges. In addition to the reports required by
subsections (a) and (b) next above, promptly upon filing any report on SEC Form
8-K with the SEC, Quest Diagnostics shall deliver copies thereof to each of the
Co-Agents or make them publicly available through EDGAR; 

                    (d)
ERISA. Promptly after the filing or receiving thereof, each Loan Party
will furnish to each of the Co-Agents copies of all reports and notices with
respect to any Reportable Event which any Loan Party files under ERISA with the
Internal Revenue Service, the PBGC or the U.S. Department of Labor or which
such Loan Party receives from the PBGC; 

                    (e)
Events of Default, etc. As soon as possible and in any event within five
(5) Business Days after any Authorized Officer of either Loan Party obtains
knowledge of the occurrence of any Event of Default or any Unmatured Default,
each Loan Party will furnish to each of the Co-Agents a written statement of an
Authorized Officer of such Loan Party setting forth details of such event and
the action that such Loan Party will take with respect thereto; 

                    (f)
Litigation. As soon as possible and in any event within ten Business
Days after any Authorized Officer of either Loan Party obtains knowledge
thereof, such Loan Party will furnish to each of the Co-Agents notice of (i)
any litigation, investigation or proceeding which may exist at any time which
would reasonably be expected to have a Material Adverse Effect and (ii) any
development in previously disclosed litigation which development would
reasonably be expected to have a Material Adverse Effect; 

                    (g)
Reviews of Receivables. As soon as available and in any event within 30
days after each Review referenced in Section 7.1(c), the Borrower will deliver
to each of the Co-Agents a written report on the results of such Review
prepared by accountants or auditors selected as specified therein and
reasonably acceptable to each of the Co-Agents, substantially in the form of
the report delivered for the prior Review, and covering such other matters as
any of the Agents may reasonably request in order to protect the interests of
the Administrative Agent, for the benefit of the Secured Parties, under or as
contemplated by this Agreement; 

                    (h)
Change in Business or Credit and Collection Policy. Each Loan Party will
furnish to each of the Co-Agents prompt written notice of any material change
in the character of 

27

such Loan
Party’s business prior to the occurrence of such change, and each Loan Party
will provide each of the Co-Agents with not less than 15 Business Days’ prior
written notice of any material change in the Credit and Collection Policy
(together with a copy of such proposed change); and 

                    (i)
Downgrade. Promptly after receipt of notice of any downgrade of any
Indebtedness of Quest Diagnostics by Moody’s or S&P, Quest Diagnostics
shall furnish to each of the Co-Agents a notice of such downgrade setting forth
the Indebtedness affected and the nature of such change in rating. 

                    (j)
Other. Promptly, from time to time, each Loan Party will furnish to each
of the Agents such other information, documents, Records or reports respecting
the Receivables or the condition or operations, financial or otherwise, of such
Loan Party as any of the Agents may from time to time reasonably request in
order to protect the interests of the Administrative Agent, for the benefit of
the Secured Parties, under or as contemplated by this Agreement. 

          Section
7.3 Negative Covenants of Loan Parties. From the date hereof until the
Final Payout Date, without the prior written consent of each of the Co-Agents: 

                    (a)
Sales, Liens, Etc. (i) The Borrower will not, except as otherwise
provided herein and in the other Transaction Documents, sell, assign (by
operation of law or otherwise) or otherwise dispose of, or create or suffer to
exist any Lien upon or with respect to, any Collateral, or any account to which
any Collections are sent, or any right to receive income or proceeds from or in
respect of any of the foregoing (except, prior to the execution of Collection
Account Agreements, set-off rights of any bank at which any such account is
maintained), and (ii) the Servicer will not assert any interest in the
Receivables, except as the Servicer. 

                    (b)
Extension or Amendment of Receivables. No Loan Party will, except as
otherwise permitted in Section 8.2(c), extend, amend or otherwise modify the
terms of any Receivable, or amend, modify or waive any term or condition of any
Contract or Invoice related thereto in any way that adversely affects the
collectibility of the Receivables originated by any Originator (taken as a
whole), or any material part thereof, or the rights of the Borrower or the
Administrative Agent (for the benefit of the Secured Parties) therein. 

                    (c)
Change in Business or Credit and Collection Policy. No Loan Party will
make or permit to be made any change in the character of its business or Credit
and Collection Policy, which change would, in either case, impair the
collectibility of any significant portion of the Receivables or otherwise
materially and adversely affect the interests or remedies of Lender under this
Agreement or any other Transaction Document. 

                    (d)
Change in Payment Instructions to Obligors. No Loan Party will add or terminate
any bank as a Collection Bank from those listed in Schedule 6.1(o) or, after
the Collateral Account has been established pursuant to Section 7.1(i), make
any change in its instructions to Obligors regarding payments to be made to any
Collection Account or Lockbox (except for a change in instructions solely for
the purpose of directing Obligors to make such payments to another existing
Collection Account or Lockbox, as applicable, and where such change is
immaterial and does not adversely affect the interests of the Administrative
Agent, on 

28

behalf of the
Secured Parties, in any respect), unless (i) the Co-Agents shall have received
prior written notice of such addition, termination or change and (ii) the
Administrative Agent shall have received duly executed copies of appropriate
Collection Account Agreements, in a form reasonably acceptable to the
Administrative Agent with each new Collection Bank. 

                    (e)
Deposits to Accounts. Each Loan Party will establish reasonable
procedures designed to ensure that no Loan Party will deposit or authorize the
deposit to any Collection Account of any cash or cash proceeds other than
Collections of Receivables and of certain of the Excluded JV Receivables. 

                    (f)
Changes to Other Documents. The Borrower will not enter into any
amendment or modification of, or supplement to, the Borrower’s Organic
Documents without the prior written consent of the Administrative Agent.
Neither the Borrower nor Quest Diagnostics will permit or enter into any
amendment to or modification of, or supplement to, the Sale Agreement or the
Subordinated Notes, except that they may enter into Joinder Agreements to add
Eligible Originators as sellers thereunder.

                    (g)
Restricted Payments by the Borrower. The Borrower will not: 

                    (i)
Purchase or redeem any shares of the capital stock of the Borrower, declare or
pay any dividends thereon (other than stock dividends), make any distribution
to stockholders or set aside any funds for any such purpose, unless, in each of
the foregoing cases: (A) such purchase, redemption, payment or distribution is
made on, or immediately following, a Settlement Date after payment of all
Obligations due and owing on such Settlement Date, and (B) after giving effect
to such purchase, redemption, payment or distribution, the Borrower’s net worth
(determined in accordance with GAAP) will at all times be at least 10% of the
greater of the Aggregate Commitment or the aggregate outstanding principal amount
of the Advances; or 

                    (ii)
Make any payment of principal or interest on the Subordinated Notes if any
Event of Default exists or would result therefrom or if such payment would
result in the Borrower’s having insufficient cash on hand to pay all
Obligations that will be due and owing on the next succeeding Settlement Date. 

                    (h)
Borrower Indebtedness. The Borrower will not incur or permit to exist
any Indebtedness or liability on account of deposits except: (A) as provided in
the Transaction Documents and (B) other current accounts payable arising in the
ordinary course of business and not overdue in any material respect. 

                    (i)
Prohibition on Additional Negative Pledges. No Loan Party will enter
into or assume any agreement (other than this Agreement and the other
Transaction Documents) prohibiting the creation or assumption of any Lien upon
the Receivables or Related Assets, whether now owned or hereafter acquired,
except as contemplated by the Transaction Documents, or otherwise prohibiting
or restricting any transaction contemplated hereby or by the other Transaction
Documents, and no Loan Party will enter into or assume any agreement creating
any Lien upon the Subordinated Notes. 

                    (j)
Name Change, Offices, Records and Books of Accounts. The Borrower will
not change its name, identity or structure (within the meaning of Article 9 of
any applicable 

29

enactment of
the UCC) or relocate its chief executive office or any office where Records are
kept unless it shall have: (i) given the Co-Agents at least 15 days’ prior
notice thereof and (ii) prior to effectiveness of such change, delivered to the
Administrative Agent all financing statements, instruments and other documents requested
by the Administrative Agent in connection with such change or relocation. 

                    (k)
Mergers, Consolidations and Acquisitions. The Borrower will not merge
into or consolidate with any other Person, or permit any other Person to merge into
or consolidate with it, or purchase, lease or otherwise acquire (in one
transaction or a series of transactions) all or substantially all of the assets
of any other Person (whether directly by purchase, lease or other acquisition
of all or substantially all of the assets of such Person or indirectly by
purchase or other acquisition of all or substantially all of the capital stock
of such other Person) other than the acquisition of the Receivables and Related
Assets pursuant to the Sale Agreement. 

                    (l)
Disposition of Receivables and Related Assets. Except pursuant to this
Agreement, the Borrower will not sell, lease, transfer, assign, pledge or
otherwise dispose of or encumber (in one transaction or in a series of
transactions) any Receivables and Related Assets. 

                    (m)
Borrowing Base. The Borrower will not request any Advance if, after
giving effect thereto, the aggregate outstanding principal balance of the Loans
would exceed the Borrowing Base. 

          Section
7.4 Separate Existence of the Borrower. Each Loan Party hereby
acknowledges that Lenders and the Agents are entering into the transactions
contemplated hereby in reliance upon the Borrower’s identity as a legal entity
separate from the Servicer and its other Affiliates. Therefore, each Loan Party
shall take all steps specifically required by this Agreement or reasonably
required by any of the Agents to continue the Borrower’s identity as a separate
legal entity and to make it apparent to third Persons that the Borrower is an
entity with assets and liabilities distinct from those of its Affiliates, and
is not a division of Quest Diagnostics or any other Person. Without limiting
the foregoing, each Loan Party will take such actions as shall be required in
order that: 

	
  

 	
  

 
	
  

 	
           (a)
 The Borrower will be a limited purpose corporation whose primary activities
 are restricted in its Certificate of Incorporation to purchasing or otherwise
 acquiring from the Originators and owning, holding, granting security interests
 in the Collateral, entering into agreements for the financing and servicing
 of the Receivables, and conducting such other activities as it deems
 necessary or appropriate to carry out its primary activities; 

 
	
  

 	
  

 
	
  

 	
           (b)
 Not less than one member of the Borrower’s Board of Directors (the “Independent Director”)
 shall be an individual who is not, and never has been, a direct, indirect or
 beneficial stockholder, officer, director, employee, affiliate, associate,
 material supplier or material customer of Quest Diagnostics or any of its
 Affiliates (other than an Affiliate organized with a limited purpose charter
 for the purpose of acquiring receivables or other financial assets or
 intangible property). The certificate of incorporation of the Borrower shall
 provide that (i) at least one member of the Borrower’s Board of Directors
 shall be an Independent Director, (ii) the Borrower’s Board of Directors
 shall not approve, or take any other action to cause the filing of, a
 voluntary bankruptcy petition 

 

30

	
  

 	
  

 
	
  

 	
 with respect
 to the Borrower unless the Independent Director shall approve the taking of
 such action in writing prior to the taking of such action and (iii) the
 provisions requiring an independent director and the provision described in
 clauses (i) and (ii) of this paragraph (b) cannot be amended without the
 prior written consent of the Independent Director; 

 
	
  

 	
  

 
	
  

 	
           (c)
 The Independent Director shall not at any time serve as a trustee in
 bankruptcy for the Borrower or any Affiliate thereof; 

 
	
  

 	
  

 
	
  

 	
           (d)
 Any director, employee, consultant or agent of the Borrower will be
 compensated from the Borrower’s funds for services provided to the Borrower.
 The Borrower will not engage any agents (other than its attorneys, auditors
 and other professionals) and will not engage any Person other than the
 Servicer to deal with the Collateral as contemplated by the Transaction
 Documents; 

 
	
  

 	
  

 
	
  

 	
           (e)
 The Borrower will contract with the Servicer to perform for the Borrower all
 operations required on a daily basis to service the Collateral. The Borrower
 will pay the Servicer the Servicer’s Fee pursuant hereto. The Borrower will
 not incur any material indirect or overhead expenses for items shared with
 Quest Diagnostics (or any other Affiliate thereof) which are not reflected in
 the Servicer’s Fee. To the extent, if any, that the Borrower (or any other
 Affiliate thereof) shares items of expenses not reflected in the Servicer’s
 Fee, for legal, auditing and other professional services and directors’ fees,
 such expenses will be allocated to the extent practical on the basis of
 actual use or the value of services rendered, and otherwise on a basis
 reasonably related to the actual use or the value of services rendered, it
 being understood that Quest Diagnostics shall pay all expenses of the
 Borrower and, to the extent provided in this Agreement, the Agents relating
 to the preparation, negotiation, execution and delivery of the Transaction
 Documents, including, without limitation, legal, rating agency and other
 fees; 

 
	
  

 	
  

 
	
  

 	
           (f)
 The Borrower’s operating expenses will not be paid by any other Loan Party or
 other Affiliate of the Borrower; 

 
	
  

 	
  

 
	
  

 	
           (g)
 The Borrower will have its own stationery; 

 
	
  

 	
  

 
	
  

 	
           (h)
 The books of account, financial reports and records of the Borrower will be
 maintained separately from those of Quest Diagnostics and each other
 Affiliate of the Borrower although they may appear in Quest Diagnostics’
 consolidated general ledger; 

 
	
  

 	
  

 
	
  

 	
           (i)
 Any financial statements of any Loan Party or Affiliate thereof which are
 consolidated to include the Borrower will contain detailed notes clearly
 stating that (A) all of the Borrower’s assets are owned by the Borrower, and
 (B) the Borrower is a separate legal entity with its own separate creditors
 that will be entitled to be satisfied out of the Borrower’s assets prior to
 any value in the Borrower becoming available to the Borrower’s equity
 holders; and the accounting records and any published financial statements of
 each of the Originators will clearly show that, for accounting purposes, the
 Receivables and Related Assets have been sold by such Originator to the
 Borrower; 

 

31

	
  

 	
  

 
	
  

 	
           (j)
 The Borrower’s assets will be maintained in a manner that facilitates their
 identification and segregation from those of the Servicer and the other
 Affiliates; 

 
	
  

 	
  

 
	
  

 	
           (k)
 Each Affiliate of the Borrower will strictly observe organizational
 formalities in its dealings with the Borrower, and, except as permitted
 pursuant to this Agreement with respect to Collections, funds or other assets
 of the Borrower will not be commingled with those of any of its Affiliates; 

 
	
  

 	
  

 
	
  

 	
           (l)
 No Affiliate of the Borrower will maintain joint bank accounts with the
 Borrower or other depository accounts with the Borrower to which any such
 Affiliate (other than in the Borrower’s or such Affiliate’s existing or
 future capacity as the Servicer hereunder or under the Sale Agreement) has
 independent access, provided
 that prior to demand by any of the Agents pursuant to Section
 7.1(i) to establish a segregated Collateral Account, Collections may be
 deposited into general accounts of Quest Diagnostics, subject to the
 obligations of the Servicer hereunder; 

 
	
  

 	
  

 
	
  

 	
           (m)
 Each Affiliate of the Borrower will maintain arm’s length relationships with
 the Borrower, and each Affiliate of the Borrower that renders or otherwise
 furnishes services or merchandise to the Borrower will be compensated by the
 Borrower at market rates for such services or merchandise; 

 
	
  

 	
  

 
	
  

 	
           (n)
 No Affiliate of the Borrower will be, nor will it hold itself out to be,
 responsible for the debts of the Borrower or the decisions or actions in
 respect of the daily business and affairs of the Borrower. Quest Diagnostics
 and the Borrower will immediately correct any known misrepresentation with
 respect to the foregoing and they will not operate or purport to operate as
 an integrated single economic unit with respect to each other or in their
 dealing with any other entity; 

 
	
  

 	
  

 
	
  

 	
           (o)
 The Borrower will keep correct and complete books and records of account and
 minutes of the meetings and other proceedings of its stockholder and board of
 directors, as applicable, and the resolutions, agreements and other
 instruments of the Borrower will be continuously maintained as official
 records by the Borrower; and 

 
	
  

 	
  

 
	
  

 	
           (p)
 The Borrower will conduct its business solely in its own legal name and in a
 manner separate from the Originators so as not to mislead others with whom
 they are dealing. 

 
	
  

 	
  

 

ARTICLE VIII. 

ADMINISTRATION AND COLLECTION

          Section
8.1 Designation of Servicer. 

                    (a)
Quest Diagnostics as Initial Servicer. The servicing, administering and
collection of the Receivables shall be conducted by the Person designated as
Servicer hereunder from time to time in accordance with this Section 8.1. Until
both of the Co-Agents give to Quest Diagnostics a Successor Notice (as defined
in Section 8.1(b)), Quest Diagnostics is hereby designated as, and hereby
agrees to perform the duties and obligations of, Servicer pursuant to the terms
hereof. 

32

                    (b)
Successor Notice; Servicer Transfer Events. Upon Quest Diagnostics’
receipt of a notice from both of the Co-Agents following a Servicer Transfer
Event of the designation of a new Servicer (a “Successor Notice”), Quest Diagnostics
agrees that it will terminate its activities as Servicer hereunder in a manner
that will facilitate the transition of the performance of such activities to
the new Servicer, and, after agreeing in writing to be bound by the terms of
this Agreement (including, without limitation, the provisions of Section
14.14), the Co-Agents’ designee shall assume each and all of Quest Diagnostics’
obligations to service and administer such Receivables, on the terms and
subject to the conditions herein set forth, and Quest Diagnostics shall use its
reasonable best efforts to assist the Co-Agents’ designee in assuming such
obligations. Without limiting the foregoing, Quest Diagnostics agrees, at its
expense, to take all actions necessary to provide the new Servicer with access
to all computer software necessary to generate reports useful in collecting or
billing Receivables, solely for use in collecting and billing Receivables. If Quest
Diagnostics disputes the occurrence of a Servicer Transfer Event, Quest
Diagnostics may take appropriate action to resolve such dispute; provided that Quest
Diagnostics must terminate its activities hereunder as Servicer and allow the
newly designated Servicer to perform such activities on the date specified by
the Co-Agents as described above, notwithstanding the commencement or
continuation of any proceeding to resolve the aforementioned dispute, if both
of the Co-Agents reasonably determines, in good faith, that such termination is
necessary or advisable to protect the Secured Parties’ interests hereunder. 

                    (c)
Subcontracts. So long as Quest Diagnostics (or any of its existing or
hereafter arising Affiliates approved by the Co-Agents at the request of Quest
Diagnostics or the Borrower subject to satisfaction of the Rating Agency
Condition) is acting as the Servicer, it may subcontract with any other
Originator or other direct or indirect Subsidiary of Quest Diagnostics, for servicing, administering or collecting
all or any portion of the Receivables, provided, however, that no such subcontract
shall relieve Quest Diagnostics (or such approved affiliated substitute
Servicer, if such approval is not conditioned upon Quest Diagnostics’ issuance
of a performance guaranty with respect to such affiliated substitute Servicer)
of its primary liability for performance of its duties as Servicer pursuant to
the terms hereof and any such sub-servicing arrangement may be terminated at
the request of any of the Agents at any time after a Successor Notice has been
given. In addition to the foregoing, with the prior written consent of the
Co-Agents (which consent shall not be unreasonably withheld or delayed), any
Servicer may subcontract with other Persons for servicing, administering or
collecting all or any portion of the Receivables, provided, however, that no such
subcontract shall relieve such Servicer of its primary liability for
performance of its duties as Servicer pursuant to the terms hereof and any such
sub-servicing arrangement may be terminated at the request of any of the Agents
at any time that the Co-Agents reasonably determine that such sub-servicer is
not performing adequately. 

                    (d)
Expense Indemnity after a Servicer Transfer Event. In addition to, and
not in lieu of the Servicer’s Fee, if Quest Diagnostics or one of its
Affiliates is replaced as Servicer following a Servicer Transfer Event, the
Borrower shall reimburse the Servicer within 10 Business Days after receipt of
a written invoice, any and all reasonable costs and expenses of the Servicer
incurred in connection with its servicing of the Receivables for the benefit of
the Secured Parties. 

33

          Section
8.2 Duties of Servicer. 

                    (a)
Appointment; Duties in General. Each of the Borrower, the Lenders and
the Agents hereby appoints as its agent, the Servicer, as from time to time
designated pursuant to Section 8.1, to enforce its rights and interests in and
under the Collateral. The Servicer shall take or cause to be taken all such
actions as may be necessary or advisable to collect each Receivable from time
to time, all in accordance with applicable laws, rules and regulations, with
reasonable care and diligence, and in accordance with the Credit and Collection
Policy. 

                    (b)
Segregation of Collections. The Servicer shall not be required (unless
otherwise requested by any of the Agents) to segregate the funds constituting
Collections prior to the remittance thereof in accordance with Article III. If
instructed by any of the Agents, the Servicer shall segregate Collections and
deposit them into the Collateral Account not later than the first Business Day
following receipt by the Servicer of such Collections in immediately available
funds. 

                    (c)
Modification of Receivables. Quest Diagnostics, while it is the
Servicer, may, in accordance with the Credit and Collection Policy, so long as
no Event of Default shall have occurred and be continuing, extend the maturity
or adjust the Unpaid Net Balance of any Receivable as Quest Diagnostics may
reasonably determine to be appropriate to maximize Collections of the
Receivables taken as a whole in a manner consistent with the Credit and
Collection Policy (although no such extension or adjustment shall alter the
status of such Receivable as a Defaulted Receivable or a Delinquent Receivable
or, in the case of an adjustment, limit the rights of the Agents or the Lenders
under Section 3.4). 

                    (d)
Contracts and Records. Each Loan Party shall deliver to the Servicer,
and the Servicer shall, or shall direct the Originators as sub-servicers to,
hold in trust for the Borrower and the Secured Parties, all Contracts and
Records. 

                    (e)
Certain Duties to the Borrower. The Servicer shall, as soon as
practicable following receipt, turn over to the Borrower (i) that portion of
the Collections which are not required to be turned over to each of the
Co-Agents, less the Servicer’s Fee and all reasonable and appropriate
out-of-pocket costs and expenses of the Servicer of servicing, collecting and
administering the Receivables to the extent not covered by the Servicer’s Fee
received by it, and (ii) the Collections of any receivable which is not a
Receivable. The Servicer, if other than Quest Diagnostics or any other Loan
Party or Affiliate thereof, shall, as soon as practicable upon demand, deliver
to the Borrower all Contracts and other Records in its possession that evidence
or relate to receivables of the Borrower other than Receivables, and copies of
all Contracts and other Records in its possession that evidence or relate to
Receivables, Obligors or Related Assets. 

                    (f)
Termination. The Servicer’s authorization under this Agreement shall
terminate upon the Final Payout Date. 

                    (g)
Power of Attorney. The Borrower hereby grants to the Servicer an
irrevocable power of attorney, with full power of substitution, coupled with an
interest, to take in the name of the Borrower all steps which are necessary or
advisable to endorse, negotiate or otherwise 

34

realize on any
writing or other right of any kind held or transmitted by the Borrower or
transmitted or received by Lender in connection with any Receivable. This power
of attorney shall automatically terminate as to any Servicer replaced in
accordance with Section 8.1(b) and shall automatically transfer to its
successor. 

          Section
8.3 Rights of the Agents. 

                    (a)
Notice to Obligors. At any time when an Event of Default has occurred
and is continuing, any of the Agents may notify the Obligors of Receivables, or
any of them, of the Borrower’s ownership of the Receivables, and the Administrative
Agent’s security interest, for the benefit of the Secured Parties, in the
Collateral. 

                    (b)
Notice to Collection Banks. At any time, the Administrative Agent is
hereby authorized to give notice to the Collection Banks, as provided in the
Collection Account Agreements, of the transfer to the Administrative Agent of
dominion and control over the Lockboxes and the Collection Accounts, and the
Administrative Agent hereby agrees to give such notice upon request of either
of the Co-Agents. The Borrower and the Servicer hereby transfer to the
Administrative Agent, effective when the Administrative Agent shall give notice
to the Collection Banks as provided in the Collection Account Agreements, the
exclusive dominion and control over the Lockboxes and the Collection Accounts,
and shall take any further action that the Administrative Agent may reasonably
request to effect such transfer. 

                    (c)
Rights on Servicer Transfer Event. At any time following the designation
of a Servicer other than Quest Diagnostics (or one of its approved Affiliates)
pursuant to Section 8.1: 

                    (i)
Any of the Agents may direct the Obligors of Receivables, or any of them, to
pay all amounts payable under any Receivable directly to the Administrative
Agent or its designee. 

                    (ii)
Any Loan Party shall, at any Agent’s request and at such Loan Party’s expense,
give notice of the Administrative Agent’s security interest in the Collateral
to each Obligor of Receivables and direct that payments be made directly to the
Administrative Agent or its designee. 

                    (iii)
Each Loan Party shall, at any Agent’s request: (A) assemble and make available
all of the Contracts and Records which are necessary or reasonably desirable to
collect the Collateral, and make the same available to the successor Servicer
at such place or places as the Administrative Agent may reasonably request, and
(B) segregate all cash, checks and other instruments received by it from time
to time constituting Collections in a manner acceptable to the Agents and
promptly upon receipt, remit all such cash, checks and instruments, duly
endorsed or with duly executed instruments of transfer, to the successor
Servicer. 

                    (iv)
Each of the Loan Parties, the Co-Agents and the Lenders hereby authorizes the
Administrative Agent and grants to the Administrative Agent an irrevocable
power of attorney (which shall terminate on the Final Payout Date), to take any
and all steps in such Person’s name and on behalf of such Person which are
necessary or desirable, in the determination of the Administrative Agent, to
collect all amounts due under any and all Receivables, including, without
limitation, endorsing any Loan Party’s name on checks and other 

35

instruments
representing Collections and enforcing such Receivables and the related
Contracts and Invoices. 

          Section
8.4 Responsibilities of Loan Parties. Anything herein to the contrary
notwithstanding: 

                    (a)
Contracts. Each Originator shall remain responsible for performing all
of its obligations (if any) under each Contract to the same extent as if no
ownership interest or security interests had been conveyed under the
Transactions Documents, and the exercise by the Administrative Agent or its
designee of its rights and remedies hereunder shall not relieve such Originator
from such obligations. 

                    (b)
Limitation of Liability. The Secured Parties shall not have any
obligation or liability with respect to any Receivables, Invoices or Contracts,
nor shall any of them be obligated to perform any of the obligations of any
Loan Party or any Originator thereunder. 

          Section
8.5 Further Action Evidencing the Security Interest. Each Loan Party
agrees that from time to time, at its expense, it will promptly execute (if
legally required) and deliver all further instruments and documents, and take
all further action that the Administrative Agent or its designee may reasonably
request in order to perfect, protect or more fully evidence the Administrative
Agent’s security interest, on behalf of the Secured Parties, in the Collateral,
or to enable the Administrative Agent or its designee to exercise or enforce
any of the Secured Parties’ respective rights hereunder or under any
Transaction Document in respect thereof. In furtherance of the foregoing, to
the maximum extent permitted by applicable law, each Loan Party (i) authorizes
the Agent to execute any such agreements, instruments or other documents in
such Loan Party’s name and to file such agreements, instruments or other
documents in any appropriate filing office, (ii) authorizes the Administrative
Agent to file any financing statement required hereunder or under any other
Loan Document, and any continuation statement or amendment with respect
thereto, in any appropriate filing office without the signature of such Loan
Party (including, without limitation, in the case of the Borrower, any such
financing statements that indicate the Collateral as “all assets” or words of
similar import), and (iii) ratifies the filing of any financing statement, and
any continuation statement or amendment with respect thereto, filed without the
signature of such Loan Party prior to the date hereof; provided that the
Administrative Agent shall provide prompt written notice to such Loan Party
after filing any such record without the signature of such Loan Party. 

          Section
8.6 Application of Collections. Except as otherwise specified by such
Obligor or required by the underlying Contract or law, any payment by an
Obligor in respect of any indebtedness owed by it to an Originator or to the
Borrower shall be applied first,
as a Collection of any Receivable or Receivables then outstanding of such
Obligor in the order of the age of such Receivables, starting with the oldest
of such Receivables (unless another reasonable basis for allocation of such
payments to the Receivables of such Obligor exists), and second, to any other indebtedness of such
Obligor. 

36

ARTICLE IX.

SECURITY INTEREST

          Section
9.1 Grant of Security Interest. To secure the due and punctual payment
of the Obligations, whether now or hereafter existing, due or to become due,
direct or indirect, or absolute or contingent, including, without limitation,
all Indemnified Amounts, in each case pro rata according to the respective
amounts thereof, the Borrower hereby pledges to the Administrative Agent, for
the benefit of the Secured Parties, and hereby grants to the Administrative
Agent, for the benefit of the Secured Parties, a security interest in, all of
the Borrower’s right, title and interest now or hereafter existing in, to and
under (a) all the Receivables and Related Assets, (b) the Sale Agreement, (c)
the rights to demand and receive payment of the Demand Advances, and (d) all
proceeds of any of the foregoing (collectively, the “Collateral”). 

          Section
9.2 Termination after Final Payout Date. Each of the Secured Parties
hereby authorizes the Administrative Agent, and the Administrative Agent hereby
agrees, promptly after the Final Payout Date to execute and deliver to the
Borrower such UCC-3 termination statements as may be necessary to terminate the
Administrative Agent’s security interest in and Lien upon the Collateral, all
at the Borrower’s expense. Upon the Final Payout Date, all right, title and
interest of the Administrative Agent and the other Secured Parties in and to
the Collateral shall terminate. 

          Section
9.3 Limitation on Rights to Collateral Proceeds. Nothing in this
Agreement shall entitle the Secured Parties to receive or retain proceeds of
the Collateral in excess of the aggregate amount of the Obligations owing to
such Secured Party (or to any Indemnified Party claiming through such Secured
Party). 

ARTICLE X.

EVENTS OF DEFAULT

          Section
10.1 Events of Default. The occurrence of any of the following events
shall constitute an “Event
of Default” hereunder: 

	
  

 	
  

 
	
  

 	
           (a)
 The Servicer or the Borrower shall fail to make (i) when and as required to be
 made by it herein, any payment, prepayment or deposit of any amount of
 principal of any Loan, or (ii) within three (3) days after the same becomes
 due, any payment of any amount of interest, fees or other Obligations payable
 hereunder or under any other Transaction Document; provided that any
 interest, fees or other amounts which are not paid on the due date shall bear
 interest at the Default Rate after such due date. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Any representation or warranty made or deemed to be made by any Loan Party
 (or any of its officers) under this Agreement or any other Transaction
 Document or in any Monthly Report, Weekly Report, computation of Cash
 Collateral Payment or other information or report delivered pursuant hereto
 shall prove to have been false or incorrect in any material adverse respect
 when made, provided
 that the materiality threshold in this subsection shall not be
 applicable with respect to any representation or warranty which itself
 contains a materiality threshold. 

 

37

	
  

 	
  

 
	
  

 	
           
 (c) Any Loan Party fails to perform or observe any other term or covenant
 contained in this Agreement or any other Transaction Document, and such
 default shall continue unremedied for a period of 5 days (in the case of
 nonperformance or nonobservance by the Servicer) or 10 days (in the case of
 nonperformance or nonobservance by the Borrower) after the earlier to occur
 of (i) the date upon which written notice thereof is given to such Loan Party
 by the Administrative Agent and (ii) the date the applicable Loan Party
 becomes aware thereof. 

 
	
  

 	
  

 
	
  

 	
           (d)
 (i)The Borrower shall (A) fail to pay any principal or interest, regardless
 of amount, due in respect of any Indebtedness of which the aggregate unpaid
 principal amount is in excess of $11,600, when and as the same shall become
 due and payable (after expiration of any applicable grace period) or (B) fail
 to observe or perform any other term, covenant, condition or agreement (after
 expiration of any applicable grace period) contained in any agreement or instrument
 evidencing or governing any such Indebtedness if the effect of any failure
 referred to in this clause (B) is to cause, or permit the holder or holders
 of such Indebtedness or a trustee on its or their behalf (with or without the
 giving of notice, the lapse of time or both) to cause, such Indebtedness to
 become due prior to its stated maturity; or (ii)any of the Originators (A) shall fail
 to pay any principal or interest, regardless of amount, due in respect of any
 Indebtedness of which the aggregate unpaid principal amount is in excess of
 $100,000,000 (or such other amount as may be set forth in the comparable
 provision of the Credit Agreement), when and as the same shall become
 due and payable (after expiration of any applicable grace period) or (B) shall
 fail to observe or perform any other term, covenant, condition or agreement
 (after expiration of any applicable grace period) contained in any agreement
 or instrument evidencing or governing any Indebtedness in excess of
 $100,000,000 (or such other amount as may be set forth in the comparable
 provision of the Credit Agreement), in
 aggregate principal amount of the Originators if, as a result of such
 failure, the holder or holders of the Indebtedness outstanding thereunder (or
 an agent or a trustee on their behalf) cause the holder or holders of such
 Indebtedness or an agent or a trustee on its or their behalf to cause such
 Indebtedness to become due prior to its stated maturity. 

 
	
  

 	
  

 
	
  

 	
           (e)
 An Event of Bankruptcy shall have occurred and remain continuing with respect
 to the Borrower or the Servicer. 

 
	
  

 	
  

 
	
  

 	
           (f)
 The three-calendar month rolling average Dilution Ratio at any Cut-Off Date
 exceeds 6.00%. 

 
	
  

 	
  

 
	
  

 	
           (g)
 The three-calendar month rolling average Default Trigger Ratio at any Cut-Off
 Date exceeds 15.40%. 

 
	
  

 	
  

 
	
  

 	
           (h)
 The three-calendar month rolling average Delinquency Ratio at any Cut-Off
 Date exceeds 9.00%. 

 
	
  

 	
  

 
	
  

 	
           (i)
 The occurrence of any Missing Information Trigger Event. 

 
	
  

 	
  

 
	
  

 	
           (j)
 The three-calendar month rolling average Collections Ratio at any Cut-Off
 Date is less than 32.00%. 

 

38

 

	
  

 	
  

 
	
  

 	
           (k)
 On any Settlement Date, after giving effect to the payments made under
 Article II or Article III, the aggregate outstanding principal balances of
 the Advances exceed the Allocation Limit. 

 
	
  

 	
  

 
	
  

 	
           (l)
 A Change in Control shall occur. 

 
	
  

 	
  

 
	
  

 	
           (m)
 The Internal Revenue Service shall file notice of a lien pursuant to Section
 6323 of the Internal Revenue Code with regard to any of the Receivables or
 Related Assets and such lien shall not have been released within seven (7)
 days, or the PBGC shall, or shall indicate its intention to, file notice of a
 lien pursuant to Section 4068 of ERISA with regard to any of the Receivables
 or Related Assets. 

 
	
  

 	
  

 
	
  

 	
           (n)
 The Administrative Agent, on behalf of the Secured Parties, for any reason,
 does not have a valid, perfected first priority security interest in the
 Receivables and the Related Assets. 

 
	
  

 	
  

 
	
  

 	
           (o)
 (i)A final judgment or judgments for the payment of money in excess of
 $11,600 in the aggregate (exclusive of judgment amounts to the extent covered
 by insurance or indemnity payments) shall be rendered by one or more courts,
 administrative tribunals or other bodies having jurisdiction against the
 Borrower and the same shall not be discharged (or provision which results in
 a stay of execution shall not be made for such discharge), vacated or bonded
 pending appeal, or a stay of execution thereof shall not be procured, within
 60 days from the date of entry thereof and the Borrower shall not, within
 said period of 60 days, or such longer period during which execution of the
 same shall have been stayed, appeal therefrom and cause the execution thereof
 to be stayed during such appeal; or (ii) a final judgment or judgments for
 the payment of money in excess of $100,000,000 (or such other amount as may
 be set forth in the comparable provision of the Credit Agreement) in the aggregate (exclusive of
 judgment amounts to the extent covered by insurance or indemnity payments)
 shall be rendered by one or more courts, administrative tribunals or other
 bodies having jurisdiction against any Originator and the same shall not be
 discharged (or provision which results in a stay of execution shall not be
 made for such discharge), vacated or bonded pending appeal, or a stay of
 execution thereof shall not be procured, within 60 days from the date of
 entry thereof and such Originator shall not, within said period of 60 days,
 or such longer period during which execution of the same shall have been
 stayed, appeal therefrom and cause the execution thereof to be stayed during
 such appeal. 

 
	
  

 	
  

 
	
  

 	
           (p)
 An ERISA Event or noncompliance with respect to Foreign Plans shall have
 occurred that when taken together with all other ERISA Events and
 noncompliance with respect to Foreign Plans that have occurred, is reasonably
 likely to result in liability of any Originator or Loan Party in an aggregate
 amount exceeding $100,000,000 (or such other amount as may be set forth in
 the comparable provision of the Credit Agreement). 

 
	
  

 	
  

 
	
  

 	
           (q)
 Quest Diagnostics shall fail to comply with any of the financial covenants
 set forth in Sections 7.2(a) and (b) (or analogous successor provisions) of
 the Credit Agreement. 

 

39

	
  

 	
  

 
	
  

 	
           (r)
 The occurrence of the Sale Termination Date under and as defined in the Sale
 Agreement. 

 
	
  

 	
  

 
	
  

 	
           (s)
 Any other event occurs that (i) could reasonably be expected to have a
 Material Adverse Effect of the type described in clause (d) of the definition
 thereof, or (ii) has had a Material Adverse Effect of the type described in
 any clause of the definition thereof. 

 

          Section
10.2 Remedies. 

                    (a)
Optional Acceleration. Upon the occurrence of an Event of Default (other
than an Event of Default described in Section 10.1(e) with respect to the
Borrower), the Administrative Agent may by notice to the Borrower, declare the
Termination Date to have occurred and the Obligations to be immediately due and
payable, whereupon the Aggregate Commitment shall terminate and all Obligations
shall become immediately due and payable. 

                    (b)
Automatic Acceleration. Upon the occurrence of an Event of Default
described in Section 10.1(e) with respect to the Borrower, the Termination Date
shall automatically occur and the Obligations shall be immediately due and
payable. 

                    (c)
Additional Remedies. Upon the Termination Date pursuant to this Section
10.2, the Aggregate Commitment will terminate, no Loans or Advances thereafter
will be made, and the Administrative Agent, on behalf of the Secured Parties,
shall have, in addition to all other rights and remedies under this Agreement
or otherwise, all other rights and remedies provided to a secured party upon
default under the UCC of each applicable jurisdiction and other applicable
laws, which rights shall be cumulative. 

ARTICLE XI.

THE AGENTS

          Section
11.1 Appointment.

	
  

 	
  

 
	
  

 	
           (a)
 Each member of the VFCC Group hereby irrevocably designates and appoints
 Wachovia Bank, National Association as VFCC Agent hereunder and under the
 other Transaction Documents to which the VFCC Agent is a party, and
 authorizes the VFCC Agent to take such action on its behalf under the
 provisions of the Transaction Documents and to exercise such powers and
 perform such duties as are expressly delegated to the VFCC Agent by the terms
 of the Transaction Documents, together with such other powers as are
 reasonably incidental thereto. Each member of the Gotham Group hereby
 irrevocably designates and appoints BTMU as Gotham Agent hereunder and under
 the other Transaction Documents to which the Gotham Agent is a party, and
 authorizes the Gotham Agent to take such action on its behalf under the
 provisions of the Transaction Documents and to exercise such powers and
 perform such duties as are expressly delegated to the Gotham Agent by the
 terms of the Transaction Documents, together with such other powers as are
 reasonably incidental thereto. Each of the Lenders and the Co-Agents hereby
 irrevocably designates and appoints The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
 New York Branch as Administrative Agent hereunder and under the Transaction
 Documents to which the Administrative Agent is a party, and authorizes 

 

40

	
  

 	
  

 
	
  

 	
 the
 Administrative Agent to take such action on its behalf under the provisions
 of the Transaction Documents and to exercise such powers and perform such
 duties as are expressly delegated to the Administrative Agent by the terms of
 the Transaction Documents, together with such other powers as are reasonably
 incidental thereto. Notwithstanding any provision to the contrary elsewhere
 in this Agreement, none of the Agents shall have any duties or
 responsibilities, except those expressly set forth in the Transaction Documents
 to which it is a party, or any fiduciary relationship with any Lender, and no
 implied covenants, functions, responsibilities, duties, obligations or
 liabilities on the part of such Agent shall be read into any Transaction
 Document or otherwise exist against such Agent. 

 
	
  

 	
  

 
	
  

 	
           (b)
 The provisions of this Article XI are solely for the benefit of the Agents
 and the Lenders, and neither of the Loan Parties shall have any rights as a
 third-party beneficiary or otherwise under any of the provisions of this
 Article XI, except that this Article XI shall not affect any obligations
 which any of the Agents or Lenders may have to either of the Loan Parties
 under the other provisions of this Agreement. 

 
	
  

 	
  

 
	
  

 	
           (c)
 In performing its functions and duties hereunder, (i) the VFCC Agent shall
 act solely as the agent of the members of the VFCC Group and does not assume
 nor shall be deemed to have assumed any obligation or relationship of trust
 or agency with or for either of the Loan Parties or any of their respective
 successors and assigns, (ii) the Gotham Agent shall act solely as the agent
 of the members of the Gotham Group and does not assume nor shall be deemed to
 have assumed any obligation or relationship of trust or agency with or for
 either of the Loan Parties or any of their respective successors and assigns,
 and (iii) the Administrative Agent shall act solely as the agent of the
 Secured Parties and does not assume nor shall be deemed to have assumed any
 obligation or relationship of trust or agency with or for either of the Loan
 Parties or any of their respective successors and assigns. 

 

          Section
11.2 Delegation of Duties. Each Agent may execute any of its duties
under the applicable Transaction Documents by or through agents or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to
such duties. No Agent shall be responsible for the negligence or misconduct of
any agents or attorneys-in-fact selected by it with reasonable care except for
agents and attorneys-in fact to which any Agent delegates all or substantially
all of its duties as an Agent which are not approved by S&P, Moody’s and,
so long as applicable, Fitch. No Agent shall be responsible for the negligence
or misconduct of agents or attorneys-in-fact selected by it with reasonable
care for due diligence and audit matters and attorneys selected with reasonable
care for legal matters. 

          Section
11.3 Exculpatory Provisions. None of the Agents nor any of its
directors, officers, agents or employees shall be (i) liable for any action
lawfully taken or omitted to be taken by it or them or any Person described in
Section 11.2 under or in connection with this Agreement (except for its, their
or such Person’s own bad faith, gross negligence or willful misconduct), or
(ii) responsible in any manner to any of the Lenders or other Agents for any
recitals, statements, representations or warranties made by the Borrower
contained in this Agreement or in any certificate, report, statement or other
document referred to or provided for in, or received under or in connection
with, this Agreement or for the value, validity, 

41

 effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other document furnished in connection
herewith, or for any failure of either of the Loan Parties to perform its
respective obligations hereunder, or for the satisfaction of any condition
specified in Article V, except receipt of items required to be delivered to
such Agent. None of the Agents shall be under any obligation to any other Agent
or any Lender to ascertain or to inquire as to the observance or performance of
any of the agreements or covenants contained in, or conditions of, this
Agreement, or to inspect the properties, books or records of the Loan Parties.
This Section 11.3 is intended solely to govern the relationship between the
Agents, on the one hand, and the Lenders and their respective Liquidity Banks,
on the other. 

          Section
11.4 Reliance by Agents. 

	
  

 	
  

 
	
  

 	
           (a)
 Each of the Agents shall in all cases be entitled to rely, and shall be fully
 protected in relying, upon any note, writing, resolution, notice, consent,
 certificate, affidavit, letter, telegram, telecopy or telex message,
 statement, order or other document or conversation believed by it to be
 genuine and correct and to have been signed, sent or made by the proper
 Person or Persons and upon advice and statements of legal counsel (including,
 without limitation, counsel to the Loan Parties), independent accountants and
 other experts selected by such Agent. Each of the Agents shall in all cases
 be fully justified in failing or refusing to take any action under this
 Agreement or any other document furnished in connection herewith unless it
 shall first receive such advice or concurrence of such of its Lenders and
 Liquidity Banks, as it shall determine to be appropriate under the relevant
 circumstances, or it shall first be indemnified to its satisfaction by its
 Constituent Liquidity Banks against any and all liability, cost and expense
 which may be incurred by it by reason of taking or continuing to take any
 such action. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Any action taken by any of the Agents in accordance with Section 11.4(a)
 shall be binding upon all of the Agents and the Lenders. 

 

          Section
11.5 Notice of Events of Default. None of the Agents shall be deemed to
have knowledge or notice of the occurrence of any Event of Default or Unmatured
Default unless such Agent has received notice from another Agent, a Lender or a
Loan Party referring to this Agreement, stating that an Event of Default or
Unmatured Default has occurred hereunder and describing such Event of Default
or Unmatured Default. In the event that any of the Agents receives such a
notice, it shall promptly give notice thereof to the Lenders and the other
Agents. The Administrative Agent shall take such action with respect to such
Event of Default or Unmatured Default as shall be directed by either of the
Co-Agents provided that
the Administrative Agent is indemnified to its satisfaction by such Co-Agent
and its Constituent Liquidity Banks against any and all liability, cost and
expense which may be incurred by it by reason of taking any such action. 

          Section
11.6 Non-Reliance on Other Agents and Lenders. Each of the Lenders
expressly acknowledges that none of the Agents, nor any of the Agents’
respective officers, directors, employees, agents, attorneys-in-fact or
affiliates has made any representations or warranties to it and that no act by
any of the Agents hereafter taken, including, without limitation, any review of
the affairs of the Loan Parties, shall be deemed to constitute any 

42

representation
or warranty by such Agent. Each of the Lenders also represents and warrants to
the Agents and the other Lenders that it has, independently and without
reliance upon any such Person (or any of their Affiliates) and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, operations, property, prospects,
financial and other conditions and creditworthiness of the Loan Parties and
made its own decision to enter into this Agreement. Each of the Lenders also
represents that it will, independently and without reliance upon the Agents or
any other Liquidity Bank or Lender, and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action under this
Agreement, and to make such investigation as it deems necessary to inform
itself as to the business, operations, property, prospects, financial and other
condition and creditworthiness of the Loan Parties. The Agents, the Lenders and
their respective Affiliates, shall have no duty or responsibility to provide
any party to this Agreement with any credit or other information concerning the
business, operations, property, prospects, financial and other condition or
creditworthiness of the Loan Parties which may come into the possession of such
Person or any of its respective officers, directors, employees, agents,
attorneys-in-fact or affiliates, except that each of the Agents shall promptly
distribute to the other Agents and the Lenders, copies of financial and other
information expressly provided to it by either of the Loan Parties pursuant to
this Agreement. 

          Section
11.7 Indemnification of Agents. Each Liquidity Bank agrees to indemnify
(a) its applicable Co-Agent, (b) the Administrative Agent, and (c) the
officers, directors, employees, representatives and agents of each of the
foregoing (to the extent not reimbursed by the Loan Parties and without
limiting the obligation of the Loan Parties to do so), ratably in accordance
with their respective Loans, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever (including, without
limitation, the reasonable fees and disbursements of counsel for such Co-Agent,
the Administrative Agent or such Person in connection with any investigative,
administrative or judicial proceeding commenced or threatened, whether or not
such Co-Agent or the Administrative Agent or such Person shall be designated a
party thereto) that may at any time be imposed on, incurred by or asserted
against such Co-Agent, the Administrative Agent or such Person as a result of,
or arising out of, or in any way related to or by reason of, any of the
transactions contemplated hereunder or the execution, delivery or performance
of this Agreement or any other document furnished in connection herewith (but
excluding any such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting solely
from the bad faith, gross negligence or willful misconduct of such Co-Agent,
the Administrative Agent or such Person as finally determined by a court of
competent jurisdiction). 

          Section
11.8 Agents in their Individual Capacities. Each of the Agents in its
individual capacity and its affiliates may make loans to, accept deposits from
and generally engage in any kind of business with the Loan Parties and their
Affiliates as though such Agent were not an Agent hereunder. With respect to
its Loans, if any, pursuant to this Agreement, each of the Agents shall have
the same rights and powers under this Agreement as any Lender and may exercise
the same as though it were not an Agent, and the terms “Lender” and “Lenders”
shall include each of the Agents in their individual capacities. 

43

          Section
11.9 [Reserved]. 

          Section
11.10 Conflict Waivers. 

	
  

 	
  

 
	
  

 	
           (a)
 Wachovia acts, or may in the future act: (i) as administrative agent for
 VFCC, (ii) as issuing and paying agent for VFCC’s Commercial Paper Notes,
 (iii) to provide credit or liquidity enhancement for the timely payment for
 VFCC’s Commercial Paper Notes and (iv) to provide other services from time to
 time for VFCC (collectively, the “Wachovia Roles”). Without limiting the
 generality of Sections 11.1 and 11.8, each of the Administrative Agent and
 the Lenders hereby acknowledges and consents to any and all Wachovia Roles
 and agrees that in connection with any Wachovia Role, Wachovia may take, or
 refrain from taking, any action which it, in its discretion, deems
 appropriate, including, without limitation, in its role as administrative
 agent for VFCC, the giving of notice to the Liquidity Banks of a mandatory
 purchase pursuant to the VFCC Liquidity Agreement, and hereby acknowledges
 that neither Wachovia nor any of its Affiliates has any fiduciary duties
 hereunder to any Lender (other than VFCC) arising out of any of the Wachovia
 Roles. 

 
	
  

 	
  

 
	
  

 	
           (b)
 BTMU acts, or may in the future act: (i) as administrator of Gotham, (ii) to
 provide credit or liquidity enhancement for the timely payment for Gotham’s
 Commercial Paper and (iii) to provide other services from time to time for
 Gotham (collectively, the “BTMU Roles”). Without limiting the generality of
 Sections 11.1 and 11.8, each of the Agents and the Lenders hereby
 acknowledges and consents to any and all BTMU Roles and agrees that in
 connection with any BTMU Role, BTMU may take, or refrain from taking, any
 action which it, in its discretion, deems appropriate, , including, without
 limitation, in its role as administrator of Gotham, the giving of notice to
 the Gotham Liquidity Banks of a
 mandatory purchase pursuant to the Gotham Liquidity Agreement, and hereby
 acknowledges that neither BTMU nor any of its Affiliates has any fiduciary
 duties hereunder to any Lender (other than Gotham) arising out of any of the
 BTMU Roles. 

 

          Section
11.11 UCC Filings. Each of the Secured Parties hereby expressly
recognizes and agrees that the Administrative Agent may be listed as the
assignee or secured party of record on the various UCC filings required to be
made under the Transaction Documents in order to perfect their respective
interests in the Collateral, that such listing shall be for administrative
convenience only in creating a record or nominee holder to take certain actions
hereunder on behalf of the Secured Parties and that such listing will not
affect in any way the status of the Secured Parties as the true parties in
interest with respect to the Collateral. In addition, such listing shall impose
no duties on the Administrative Agent other than those expressly and
specifically undertaken in accordance with this Article XI. 

44

ARTICLE XII.

ASSIGNMENTS AND PARTICIPATIONS

          Section
12.1 Restrictions on Assignments, etc. 

	
  

 	
  

 
	
  

 	
           (a)
 No Loan Party may assign its rights, or delegate its duties hereunder or any
 interest herein without the prior written consent of each of the Agents and
 satisfaction of the Rating Agency Condition; provided, however, that the foregoing
 shall not be deemed to restrict Quest Diagnostics’ right, prior to delivery
 of a Successor Notice, to request the Agents’ consent to the appointment of
 an Affiliate as replacement Servicer (subject to satisfaction of the Rating
 Agency Condition) or to delegate all or any portion of its duties as Servicer
 to other Originators, as sub-servicers, so long as Quest Diagnostics remains
 primarily liable for the performance or non-performance of such duties. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Each of the Conduits may, at any time, assign all or any portion of any of
 its Loans, or sell participations therein, to its Constituent Liquidity Banks
 (or to its Co-Agent for the ratable benefit of its Constituent Liquidity
 Banks). 

 
	
  

 	
  

 
	
  

 	
           (c)
 In addition to, and not in limitation of, assignments and participations
 described in Section 12.1(b): 

 

                    
(i) in the event that any of the Liquidity Banks becomes a Downgraded Liquidity
Bank, such Downgraded Liquidity Bank shall give prompt written notice of its
Downgrading Event to the applicable Co-Agent and the Borrower. Within 5
Business Days after the Borrower’s receipt of such notice, the Borrower may
propose an Eligible Assignee who is willing to accept an assignment of, and to
assume, such Downgraded Liquidity Bank’s rights and obligations under this
Agreement and under the Liquidity Agreement to which it is a party. In the
event that the Borrower fails to propose such an Eligible Assignee within such
5 Business Day period, or such Eligible Assignee does not execute and deliver
assignment and assumption documents reasonably acceptable to such Downgraded
Liquidity Bank and such Co-Agent, and pays the Downgraded Liquidity Bank’s
Obligations in full, in each case, not later than 5:00 p.m. (New York City
time) on the 10th Business Day following the Borrower’s receipt of notice of
such Downgrading Event, such Co-Agent may identify an Eligible Assignee without
the Borrower’s consent, and the Downgraded Liquidity Bank shall promptly assign
its rights and obligations to the Eligible Assignee designated by such Co-Agent
against payment in full of its Obligations; 

                    (ii)
each of the Lenders may assign all or any portion of its Loans and, if
applicable, its Commitment and Liquidity Commitment, to any Eligible Assignee
with the prior written consent of (A) the Borrower and (B) such Lender’s
applicable Co-Agent, which consents shall not be unreasonably withheld or
delayed; and 

                    (iii)
each of the Lenders may, without the prior written consent of the Borrower or any
of the Agents, sell participations in all or any portion of their respective
rights and obligations in, to and under the Transaction Documents and the
Obligations in accordance with Sections 12.2 and 14.7. 

45

          Section
12.2 Rights of Assignees and Participants. 

	
  

 	
  

 
	
  

 	
            (a) Upon the
 assignment by a Lender in accordance with Section 12.1(b) or (c), the
 Eligible Assignee(s) receiving such assignment shall have all of the rights
 and obligations of such Lender with respect to the Transaction Documents and
 the Obligations (or such portion thereof as has been assigned). 

 
	
  

 	
  

 
	
  

 	
            (b) In no
 event will the sale of any participation interest in any Lender’s or any
 Eligible Assignee’s rights under the Transaction Documents or in the
 Obligations relieve the seller of such participation interest of its
 obligations, if any, hereunder or, if
 applicable, under the Liquidity Agreement to which it is a party. 

 

          Section
12.3 Terms and Evidence of Assignment. Any assignment to any Eligible
Assignee(s) pursuant to Section 1.2(c), 12.1(b) or 12.1(c) shall be upon such
terms and conditions as the assigning Lender and the applicable Co-Agent, on
the one hand, and the Eligible Assignee, on the other, may mutually agree, and
shall be evidenced by such instrument(s) or document(s) as may be satisfactory
to such Lender, the applicable Co-Agent and the Eligible Assignee(s). Any
assignment made in accordance with the terms of this Article XII shall relieve
the assigning Lender of its obligations, if any, under this Agreement (and, if
applicable, the Liquidity Agreement to which it is a party) to the extent
assigned and no Lender may assign or otherwise transfer any of its rights and
obligations hereunder except in accordance with the terms of this Article XII. 

ARTICLE XIII. 

INDEMNIFICATION

          Section
13.1 Indemnities by the Borrower. 

                    (a)
General Indemnity. Without limiting any other rights which any such
Person may have hereunder or under applicable law, the Borrower hereby agrees
to indemnify each of the Affected Parties, each of their respective Affiliates,
and all successors, transferees, participants and assigns and all officers,
directors, shareholders, controlling persons, employees and agents of any of
the foregoing (each, an “Indemnified
Party”), forthwith on demand, from and against any and all
damages, losses, claims, liabilities and reasonable related out-of-pocket costs
and expenses, including reasonable attorneys’ fees and disbursements (all of
the foregoing being collectively referred to as “Indemnified Amounts”) awarded against
or incurred by any of them arising out of or relating to the Transaction
Documents, the Obligations or the Collateral, excluding, however: (i)
Indemnified Amounts to the extent determined by a court of competent
jurisdiction to have resulted from bad faith, gross negligence or willful
misconduct on the part of such Indemnified Party or (ii) recourse (except as
otherwise specifically provided in this Agreement) for Indemnified Amounts to
the extent the same includes losses in respect of Receivables which are
uncollectible on account of the insolvency, bankruptcy or lack of
creditworthiness of the related Obligor or the related Obligor’s refusal to
pay; provided, however, that
prior to the occurrence of an Event of Default, the Indemnified Parties shall
only be entitled to seek indemnity for the reasonable fees and disbursements of
a single law firm as special counsel to all such Indemnified Parties (and, if
required, a single law firm as local counsel to all such Indemnified Parties in
each relevant jurisdiction where the law firm acting as 

46

	
  

 	
  

 
	
 special
 counsel is not licensed to practice). Without limiting the foregoing, the
 Borrower shall indemnify each Indemnified Party for Indemnified Amounts
 arising out of or relating to:

 
	
  

 	
  

 
	
  

 	
           (A)
 the creation of any Lien on, or transfer by any Loan Party of any interest
 in, the Collateral other than as provided in the Transaction Documents; 

 
	
  

 	
  

 
	
  

 	
           (B)
 any representation or warranty made by any Originator or Loan Party (or any
 of its officers) under or in connection with any Transaction Document, any
 Monthly Report, Weekly Report, computation of Cash Collateral Payment or any
 other information or report delivered by or on behalf of any Originator or
 Loan Party pursuant thereto, which shall have been false, incorrect or
 misleading in any respect when made or deemed made or delivered, as the case
 may be; 

 
	
  

 	
  

 
	
  

 	
           (C)
 the failure by any Loan Party to comply with any applicable law, rule or
 regulation with respect to any Receivable or the related Contract and/or
 Invoice, including, without limitation, any state or local assignment of
 claims act or similar legislation prohibiting or imposing notice and
 acknowledgement requirements or other limitations or conditions on the
 assignment of a Specified Government Receivable, or the nonconformity of any
 Receivable or the related Contract and/or Invoice with any such applicable
 law, rule or regulation; 

 
	
  

 	
  

 
	
  

 	
           (D)
 the failure to vest and maintain vested in the Borrower a perfected ownership
 interest in all Collateral; or the failure to vest and maintain vested in the
 Administrative Agent, for the benefit of the Secured Parties, a valid and
 perfected first priority security interest in the Collateral, free and clear
 of any other Lien, other than a Lien arising solely as a result of an act of
 one of the Secured Parties, now or at any time thereafter; 

 
	
  

 	
  

 
	
  

 	
           (E)
 unless the Borrower has actual knowledge that the Administrative Agent has
 prepared a financing statement, amendment or similar instrument or document
 under the UCC of any applicable jurisdiction or other applicable laws with
 respect to any Collateral, the failure to deliver to the Administrative Agent
 on a timely basis any such financing statement, amendment or similar
 instrument or document or to authorize its filing on a timely basis; 

 
	
  

 	
  

 
	
  

 	
           (F)
 any dispute, claim, offset or defense (other than discharge in bankruptcy) of
 the Obligor to the payment of any Receivable (including, without limitation,
 a defense based on such Receivables or the related Contract and/or Invoice
 not being a legal, valid and binding obligation of such Obligor enforceable
 against it in accordance with its terms), or any other claim resulting from
 the sale of the services related to such Receivable or the furnishing or
 failure to furnish such services; 

 
	
  

 	
  

 
	
  

 	
           (G)
 any matter described in Section 3.4; 

 
	
  

 	
  

 
	
  

 	
           (H)
 any failure of any Loan Party, as the Borrower, the Servicer or otherwise, to
 perform its duties or obligations in accordance with the provisions of this
 Agreement or the other Transaction Documents to which it is a party;

 

47

	
  

 	
  

 
	
  

 	
           (I)
 any claim of breach by any Loan Party of any related Contract and/or Invoice
 with respect to any Receivable; 

 
	
  

 	
  

 
	
  

 	
           (J)
 any Tax (but not including Taxes upon or measured by net income or net
 profits or franchise Taxes in lieu of net income or net profits Taxes), all
 interest and penalties thereon or with respect thereto, and all out-of-pocket
 costs and expenses, including the reasonable fees and expenses of counsel in
 defending against the same, which may arise by reason of the Administrative
 Agent’s security interest in the Collateral; 

 
	
  

 	
  

 
	
  

 	
           (K)
 the commingling of Collections of Receivables at any time with other funds; 

 
	
  

 	
  

 
	
  

 	
           (L)
 any investigation, litigation or proceeding related to or arising from this
 Agreement or any other Transaction Document, the transactions contemplated
 hereby or thereby, the use of the proceeds of any Loan, the security interest
 in the Receivables and Related Assets or any other investigation, litigation
 or proceeding relating to the Borrower or any of the Originators in which any
 Indemnified Party becomes involved as a result of any of the transactions
 contemplated hereby or thereby (other than an investigation, litigation or
 proceeding (1) relating to a dispute solely amongst the Lenders (or certain
 Lenders) and the Administrative Agent or (2) excluded by Section 13.1(a)); 

 
	
  

 	
  

 
	
  

 	
           (M)
 any products or professional liability, personal injury or damage suit, or
 other similar claim arising out of or in connection with merchandise,
 insurance or services that are the subject of any Contract, Invoice or any
 Receivable; 

 
	
  

 	
  

 
	
  

 	
           (N)
 any inability to litigate any claim against any Obligor in respect of any
 Receivable as a result of such Obligor being immune from civil and commercial
 law and suit on the grounds of sovereignty or otherwise from any legal
 action, suit or proceeding; 

 
	
  

 	
  

 
	
  

 	
           (O)
 the occurrence of any Event of Default of the type described in Section
 10.1(e); 

 
	
  

 	
  

 
	
  

 	
           (P)
 any loss incurred by any of the Secured Parties as a result of the inclusion
 in the Borrowing Base of Receivables owing from any single Obligor and its
 Affiliated Obligors which causes the aggregate Unpaid Net Balance of all such
 Receivables to exceed the applicable Obligor Concentration Limit; or 

 
	
  

 	
  

 
	
  

 	
           (Q)
 failure of any Specified Government Receivables to be recorded in the
 applicable Originator’s or the Servicer’s billing and accounting systems
 solely as a Client-Billed Receivable. 

 

                    (b)
Contest of Tax Claim; After-Tax Basis. If any Indemnified Party shall
have notice of any attempt to impose or collect any Tax or governmental fee or
charge for which indemnification will be sought from any Loan Party under
Section 13.1(a)(J), such Indemnified Party shall give prompt and timely notice
of such attempt to the Borrower and the Borrower shall have the right, at its
expense, to participate in any proceedings resisting or objecting to the
imposition or collection of any such Tax, governmental fee or charge.
Indemnification 

48

hereunder
shall be in an amount necessary to make the Indemnified Party whole after
taking into account any tax consequences when actually realized by the
Indemnified Party of the payment of any of the aforesaid taxes or payments of
amounts indemnified against hereunder (including any deduction) and the receipt
of the indemnity payment provided hereunder or of any refund of any such tax
previously indemnified hereunder, including the effect of such tax, amount
indemnified against, deduction or refund on the amount of tax measured by net
income or profits which is or was payable by the Indemnified Party. For purposes
of this Agreement, an Indemnified Party shall be deemed to have “actually
realized” tax consequences to the extent that, and at such time as, the amount
of Taxes payable (including Taxes payable on an estimated basis) by such
Indemnified Party is increased above or reduced below, as the case may be, the
amount of Taxes that such Indemnified Party would be required to pay but for
receipt or accrual of the indemnity payment or the incurrence or payment of
such indemnified amount, as the case may be. 

                    (c)
Contribution. If for any reason the indemnification provided above in
this Section 13.1 (and subject to the exceptions set forth therein) is
unavailable to an Indemnified Party or is insufficient to hold an Indemnified
Party harmless, then the Borrower shall contribute to the amount paid or
payable by such Indemnified Party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect not only the relative
benefits received by such Indemnified Party on the one hand and the Borrower on
the other hand but also the relative fault of such Indemnified Party as well as
any other relevant equitable considerations. 

          Section
13.2 Indemnities by Servicer. Without limiting any other rights which any
Indemnified Party may have hereunder or under applicable law, the Servicer
hereby agrees to indemnify each of the Indemnified Parties forthwith on demand,
from and against any and all Indemnified Amounts awarded against or incurred by
any of them arising out of or relating to the Servicer’s performance of, or
failure to perform, any of its obligations under or in connection with any
Transaction Document, or any representation or warranty made by the Servicer
(or any of its officers) under or in connection with any Transaction Document,
any Monthly Report, Weekly Report, computation of Cash Collateral Payment or
any other information or report delivered by or on behalf of the Servicer,
which shall have been false, incorrect or misleading in any material respect
when made or deemed made or delivered, as the case may be, or the failure of
the Servicer to comply with any applicable law, rule or regulation with respect
to any Receivable or the related Contract and Invoice. Notwithstanding the
foregoing, in no event shall any Indemnified Party be awarded any Indemnified
Amounts (a) to the extent determined by a court of competent jurisdiction to
have resulted from gross negligence or willful misconduct on the part of such
Indemnified Party or (b) as recourse for Indemnified Amounts to the extent the
same includes losses in respect of Receivables which are uncollectible on
account of the insolvency, bankruptcy or lack of creditworthiness of the
related Obligor. 

                    If
for any reason the indemnification provided above in this Section 13.2 (and
subject to the exceptions set forth therein) is unavailable to an Indemnified
Party or is insufficient to hold an Indemnified Party harmless, then the
Servicer shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, claim, damage or liability in such proportion
as is appropriate to reflect not only the relative benefits received by such
Indemnified Party on the one hand and the Servicer on the other hand but also
the relative fault of such Indemnified Party as well as any other relevant
equitable considerations. 

49

ARTICLE XIV.

MISCELLANEOUS

          Section
14.1 Amendments, Etc. No amendment or waiver of any provision of this
Agreement nor consent to any departure by any Loan Party therefrom shall in any
event be effective unless the same shall be in writing and signed by each of
the Loan Parties and the Co-Agents, and any such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided,
however, that: 

	
  

 	
  

 
	
  

 	
           (a)
 before either of the Co-Agents enters into such an amendment or grants such a
 waiver or consent that is deemed to be material by S&P, Moody’s or, at
 any time while it is rating either Conduit’s Commercial Paper Notes, Fitch,
 the Rating Agency Condition (if applicable to such Co-Agent’s Conduit) must
 be satisfied with respect to each of such Conduits, 

 
	
  

 	
  

 
	
  

 	
           (b)
 without the prior written consent of all Liquidity Banks in a Co-Agent’s
 Group, such Co-Agent will not amend, modify or waive any provision of this
 Agreement which would (i) reduce the amount of any principal or interest that
 is payable on account of its Conduit’s Loans or delay any scheduled date for
 payment thereof; (ii) decrease the Required Reserve, decrease the spread
 included in any Interest Rate or change the Servicer’s Fee; (iii) modify this
 Section 14.1; or (iv) modify any yield protection or indemnity provision
 which expressly inures to the benefit of assignees or participants of such
 Co-Agent’s Conduit, 

 
	
  

 	
  

 
	
  

 	
           (c)
 without the prior written consent of each Agent affected thereby, no such
 amendment, waiver or consent shall amend, modify, terminate or waive any
 provision of Article XI as the same applies to any Agent, or any other
 provision hereof as the same applies to the rights or obligations of any
 Agent, in each case without the consent of such Agent, 

 
	
  

 	
  

 
	
  

 	
           (d)
 if less than all of the Co-Agents decline to approve a requested amendment
 and within 90 days after the Borrower’s request for approval of such
 amendment, and either (i) the Borrower prepays the Obligations of the
 dissenting Co-Agent’s (or Co-Agents’) Group in full or (ii) finds one or more
 Eligible Assignees to replace each such Co-Agent’s Group, then the requested
 amendment shall become effective on the effective date of such prepayment or
 assignment as to the remaining Lenders (and, if applicable, as to any
 replacement Lenders), and 

 
	
  

 	
  

 
	
  

 	
           (e)
 if less than all of the Co-Agents decline to approve a requested waiver and
 (i) the Borrower either (A) identifies one or more Eligible Assignee(s) to
 accept immediate written assignments of such Co-Agent’s Group’s Commitment(s)
 and outstanding Obligations, or (B) immediately pays all Obligations owing to
 the members of such Co-Agent’s (or Co-Agents’) Group(s) in full, and (ii) the
 Administrative Agent has not already declared the Termination Date to have
 occurred, such waiver shall become effective as to the remaining Lenders on
 the effective date of such assignment or repayment. 

 

50

          Section
14.2 Notices, Etc. All notices and other communications provided for
hereunder shall, unless otherwise stated herein, be in writing (including
facsimile communication) and shall be personally delivered or sent by express
mail or courier or by certified mail, postage prepaid, or by facsimile, to the
intended party at the address or facsimile number of such party set forth on
Schedule 14.2 or at such other address or facsimile number as shall be
designated by such party in a written notice to the other parties hereto. All
such notices and communications shall be effective, (a) if personally delivered
or sent by express mail or courier or if sent by certified mail, when received,
and (b) if transmitted by facsimile, when sent, receipt confirmed by telephone
or electronic means. 

          Section
14.3 No Waiver; Remedies. No failure on the part of the Administrative
Agent or any of the other Secured Parties to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by
law. Without limiting the foregoing, each of the Administrative Agent and the
Lenders is hereby authorized by the Borrower at any time and from time to time,
to the fullest extent permitted by law, to set off and apply to payment of any
Obligations that are then due and owing any and all deposits (general or
special, time or demand provisional or final) at any time held and other
indebtedness at any time owing by such Person to or for the credit or the
account of the Borrower. 

          Section
14.4 Binding Effect; Survival. This Agreement shall be binding upon and
inure to the benefit of each the Loan Parties, the Administrative Agent, the
Lenders and their respective successors and assigns, and the provisions of
Section 4.2 and Article XIII shall inure to the benefit of the Affected Parties
and the Indemnified Parties, respectively, and their respective successors and
assigns; provided,
however, nothing in the foregoing shall be deemed to authorize
any assignment not permitted by Section 12.1. This Agreement shall create and
constitute the continuing obligations of the parties hereto in accordance with
its terms, and shall remain in full force and effect until the Final Payout
Date. The rights and remedies with respect to any breach of any representation
and warranty made by the Borrower pursuant to Article VI and the
indemnification and payment provisions of Article XIII and Sections 4.2, 14.5,
14.6, 14.7, 14.8, 14.14 and 14.16 shall be continuing and shall survive any
termination of this Agreement. 

          Section
14.5 Costs, Expenses and Stamp Taxes. In addition to their obligations
under the other provisions of this Agreement, the Loan Parties jointly and
severally agree to pay: 

	
  

 	
  

 
	
  

 	
           (a)
 within 30 days after receipt of a written invoice therefor: all reasonable
 out-of-pocket costs and expenses incurred by the Administrative Agent, in
 connection with (i) the negotiation, preparation, execution and delivery of
 this Agreement, the other Transaction Documents or the Liquidity Agreement
 (subject to the limitations set forth in the Fee Letters), or (ii) the
 administration of the Transaction Documents prior to an Event of Default
 including, without limitation, (A) the reasonable fees and expenses of a
 single law firm acting as counsel to the Administrative Agent and the Lenders
 incurred in connection with any of the foregoing, and (B) subject to the
 limitations set forth in the Fee Letters and in Section 7.1(c), the
 reasonable fees and expenses of independent 

 

51

	
  

 	
  

 
	
  

 	
 accountants
 incurred in connection with any review of any Loan Party’s books and records
 either prior to or after the execution and delivery hereof; 

 
	
  

 	
  

 
	
  

 	
           (b)
 within 30 days after receipt of a written invoice therefor: all reasonable
 out-of-pocket costs and expenses (including, without limitation, the
 reasonable fees and expenses of counsel and independent accountants) incurred
 by each of the Lenders, the Administrative Agent and the Liquidity Banks in
 connection with the negotiation, preparation, execution and delivery of any
 amendment or consent to, or waiver of, any provision of the Transaction
 Documents which is requested or proposed by any Loan Party (whether or not
 consummated), the administration of the Transaction Documents following an
 Event of Default (or following a waiver of or consent to any Event of
 Default), or the enforcement by any of the foregoing Persons of, or any
 actual or claimed breach of, this Agreement or any of the other Transaction
 Documents, including, without limitation, (i) the reasonable fees and
 expenses of counsel to any of such Persons incurred in connection with any of
 the foregoing or in advising such Persons as to their respective rights and
 remedies under any of the Transaction Documents in connection with any of the
 foregoing, and (ii) the reasonable fees and expenses of independent
 accountants incurred in connection with any review of any Loan Party’s books
 and records or valuation of the Receivables and Related Assets; and 

 
	
  

 	
  

 
	
  

 	
           (c)
 upon demand: all stamp and other similar or recording taxes and fees payable
 or determined to be payable in connection with the execution, delivery,
 filing and recording of this Agreement or the other Transaction Documents
 (and Loan Parties, jointly and severally agree to indemnify each Indemnified
 Party against any liabilities with respect to or resulting from any delay in
 paying or omission to pay such taxes and fees). 

 

          Section
14.6 No Proceedings. Each of the parties hereto hereby agrees that it
will not institute against the Borrower, Gotham or VFCC, or join any Person in
instituting against the Borrower, Gotham or VFCC, any insolvency proceeding
(namely, any proceeding of the type referred to in the definition of Event of
Bankruptcy) so long as any Obligations (in the case of the Borrower) or any
Commercial Paper Notes or other senior Indebtedness issued by Gotham or VFCC,
as the case may be, shall be outstanding or there shall not have elapsed one
year plus one day since the last day on which any such Obligations and Commercial
Paper Notes or other senior Indebtedness shall have been outstanding. The
parties’ obligations under this Section 14.6 shall survive termination of this
Agreement. 

          Section
14.7 Confidentiality of Borrower Information. Each of the Agents and the
Lenders agrees to keep information obtained by it pursuant to the Transaction
Documents confidential in accordance with such Agent’s or Lender’s customary
practices and in accordance with applicable law and agrees that it will only
use such information in connection with the transactions contemplated hereby
and not disclose any of such information other than (a) to such Agent’s or
Lender’s employees, representatives, directors, attorneys, auditors, agents,
professional advisors, trustees or affiliates who are advised of the
confidential nature thereof it solely for the purposes of evaluating,
administering and enforcing the transactions contemplated by the Transaction
Documents and making any necessary business judgments with respect thereto, or
to any direct or indirect contractual counterparty in swap agreements or such 

52

contractual
counterparty’s professional advisor (so long as such contractual counterparty
or professional advisor to such contractual counterparty agrees to be bound by
the provision of this Section 14.7, such Agent or Lender being liable for any
breach of confidentiality by any Person described in this clause (a) and with
respect to disclosures to an Affiliate to the extent disclosed by such Agent or
Lender to such Affiliate), (b) to the extent such information presently is or
hereafter becomes available to such Agent or Lender on a non-confidential basis
from a Person not an Affiliate of such Agent or Lender not known to such Lender
to be violating a confidentiality obligation by such disclosure, (c) to the
extent disclosure is required by any Law, subpoena or judicial order or process
(provided that
notice of such requirement or order shall be promptly furnished to the
applicable Loan Party unless such notice is legally prohibited) or requested or
required by bank, securities, insurance or investment company regulations or
auditors or any administrative body or commission to whose jurisdiction such
Agent or Lender may be subject, (d) to any rating agency to the extent required
in connection with any rating to be assigned to such Lender, (e) to assignees
or participants or prospective assignees or participants who agree to be bound
by the provisions of this Section 14.7, (f) to the extent required in
connection with any litigation between any Loan Party and any Lender with
respect to the Loans or any Transaction Document, (g) to any dealer or
placement agent for such party’s Commercial Paper Notes, who (i) in the good
faith belief of such party, has a need to know such confidential information,
(ii) is informed by such party of the confidential nature of such information
and the terms of this Section 14.7 and (iii) has agreed in writing to be bound
by the provisions of this Section 14.7, (h) to any Liquidity Bank (whether or
not on the date of disclosure, such Liquidity Bank continues to be an Eligible
Assignee), or to any other actual or potential permitted assignee or
participant permitted under Section 12.1 who has agreed to be bound by the
provisions of this Section 14.7, (i) to any rating agency that maintains a
rating for such party’s Commercial Paper Notes or is considering the issuance
of such a rating, for the purposes of reviewing the credit of any Lender in
connection with such rating, (j) to any other party to this Agreement (and any
independent attorneys and auditors of such party), for the purposes
contemplated hereby, (k) to any entity that provides a surety bond or other
credit enhancement to either Conduit solely for the purpose of providing such
surety bond or other credit enhancement and not for any other purpose, (l) in
connection with the enforcement of this Agreement or any other Transaction
Document to the extent required to exercise rights against the Collateral, or
(m) with the applicable Loan Party’s prior written consent. In addition, each
of the Lenders and the Agents may disclose on a “no name” basis to any actual
or potential investor in Commercial Paper Notes information regarding the
nature of this Agreement, the basic terms hereof (including without limitation
the amount and nature of the Aggregate Commitment and the Advances), the
nature, amount and status of the Receivables, and the current and/or historical
ratios of losses to liquidations and/or outstandings with respect to the
Receivables. This Section 14.7 shall survive termination of this Agreement. 

          Section
14.8 Confidentiality of Program Information. 

                    (a)
Confidential Information. Each party hereto acknowledges that the
Conduits and the Agents regard the structure of the transactions contemplated
by this Agreement to be proprietary, and each such party agrees that: 

                    (i)
it will not disclose without the prior consent of each Conduit or each Agent
(other than to the directors, employees, auditors, counsel or affiliates
(collectively, 

53

 “representatives”)
of such party, each of whom shall be informed by such party of the confidential
nature of the Program Information (as defined below) and of the terms of this
Section 14.8): (A) any information regarding the pricing in, or copies of, the
Liquidity Agreements or the Fee Letters, or (B) any information which is
furnished by either Conduit or any Agent to such party and which is designated
by such Conduit or such Agent to such party in writing or otherwise as confidential
or not otherwise available to the general public (the information referred to
in clauses (A) and (B) is collectively referred to as the “Program Information”);
provided, however,
that such party may disclose any such Program Information (1) as may be
required by any municipal, state, federal or other regulatory body having or
claiming to have jurisdiction over such party, including, without limitation,
the SEC, (2) in order to comply with any law, order, regulation, regulatory
request or ruling applicable to such party, (3) subject to subsection (c)
below, in the event such party is legally compelled (by interrogatories,
requests for information or copies, subpoena, civil investigative demand or
similar process) to disclose any such Program Information, or (4) in financial
statements as required by GAAP; 

                    (ii)
it will use the Program Information solely for the purposes of evaluating,
administering and enforcing the transactions contemplated by the Transaction
Documents and making any necessary business judgments with respect thereto; and

                    (iii)
it will, upon demand, return (and cause each of its representatives to return)
to the applicable Co-Agent, all documents or other written material received
from either Conduit in connection with (a)(i)(B) above and all copies thereof
made by such party which contain the Program Information. 

                    (b)
Availability of Confidential Information. This Section 14.8 shall be
inoperative as to such portions of the Program Information which are or become
generally available to the public or such party on a nonconfidential basis from
a source other than the Administrative Agent or were known to such party on a
nonconfidential basis prior to its disclosure by the Administrative Agent. 

                    (c)
Legal Compulsion to Disclose. In the event that any party or anyone to
whom such party or its representatives transmits the Program Information is
requested or becomes legally compelled (by interrogatories, requests for
information or documents, subpoena, civil investigative demand or similar
process) to disclose any of the Program Information, such party will provide
the Administrative Agent with prompt written notice so that the Administrative
Agent may seek a protective order or other appropriate remedy and/or, if it so
chooses, agree that such party may disclose such Program Information pursuant
to such request or legal compulsion. In the event that such protective order or
other remedy is not obtained, or the Administrative Agent agrees that such
Program Information may be disclosed, such party will furnish only that portion
of the Program Information which (in such party’s good faith judgment) is
legally required to be furnished and will exercise reasonable efforts to obtain
reliable assurance that confidential treatment will be accorded the Program
Information. 

                    (d)
Survival. This Section 14.8 shall survive termination of this Agreement.

54

          Section
14.9 Captions and Cross References. The various captions (including,
without limitation, the table of contents) in this Agreement are provided
solely for convenience of reference and shall not affect the meaning or
interpretation of any provision of this Agreement. Unless otherwise indicated,
references in this Agreement to any Section, Annex, Schedule or Exhibit are to
such Section of or Annex, Schedule or Exhibit to this Agreement, as the case
may be, and references in any Section, subsection, or clause to any subsection,
clause or subclause are to such subsection, clause or subclause of such
Section, subsection or clause. 

          Section
14.10 Integration. This Agreement and the other Transaction Documents
contain a final and complete integration of all prior expressions by the
parties hereto with respect to the subject matter hereof and shall constitute
the entire understanding among the parties hereto with respect to the subject
matter hereof, superseding all prior oral or written understandings. 

          Section
14.11 Governing Law. EACH TRANSACTION DOCUMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW (EXCEPT IN THE CASE OF THE OTHER TRANSACTION DOCUMENTS,
TO THE EXTENT OTHERWISE EXPRESSLY STATED THEREIN) AND EXCEPT TO THE EXTENT THAT
THE PERFECTION OF THE OWNERSHIP INTERESTS OR SECURITY INTERESTS OF THE BORROWER
OR THE ADMINISTRATIVE AGENT, ON BEHALF OF THE SECURED PARTIES, IN ANY OF THE
COLLATERAL IS GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF
NEW YORK. 

          Section
14.12 Waiver Of Jury Trial. EACH PARTY HERETO HEREBY EXPRESSLY WAIVES
ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND
ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR UNDER ANY
AMENDMENT, INSTRUMENT OR DOCUMENT DELIVERED OR WHICH MAY IN THE FUTURE BE
DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING OR OTHER
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
TRANSACTION DOCUMENT AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL NOT BE
TRIED BEFORE A JURY. 

          Section
14.13 Consent To Jurisdiction; Waiver Of Immunities. EACH PARTY HERETO
HEREBY ACKNOWLEDGES AND AGREES THAT: 

	
  

 	
  

 
	
  

 	
           (a)
 IT IRREVOCABLY (i) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION, FIRST, OF ANY
 UNITED STATES FEDERAL COURT, AND SECOND, IF FEDERAL JURISDICTION IS NOT
 AVAILABLE, OF ANY NEW YORK STATE COURT, IN EITHER CASE SITTING IN NEW YORK
 COUNTY, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
 THIS AGREEMENT, AND (ii) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO
 SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF AN ACTION OR
 PROCEEDING IN SUCH COURTS. 

 

55

	
  

 	
  

 
	
  

 	
           (b)
 TO THE EXTENT THAT IT HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM THE
 JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE
 OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID TO EXECUTION,
 EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, IT HEREBY
 IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER OR IN
 CONNECTION WITH THIS AGREEMENT. 

 

          Section
14.14 Business Associate Agreement; Health Care Data Privacy and Security
Requirements. 

                    (a)
Definitions. “HIPAA”
means the Health Insurance Portability and Accountability Act of
1996. The terms “EDI
Rule,” “Privacy Regulations” and “Security Regulations” refer to all of
the rules and regulations in effect from time to time issued pursuant to HIPAA
and applicable to (respectively) the electronic data interchange, privacy and
security of Individually Identifiable Health Information (found at Title 45,
Code of Federal Regulations (CFR) Parts 160, 162, and 164). “Business Associate”
refers to each of the Agents, the Borrower and any successor Servicer to Quest
Diagnostics appointed by the Agents pursuant to this Agreement, severally and
not jointly. All other terms used, but not otherwise defined in this Section,
shall have the same meaning as those terms defined in the Title 45 of the Code
of Federal Regulations applicable to HIPAA or any successor statute. 

                    (b)
Privacy. In accordance with the purposes of this Agreement, Quest
Diagnostics will disclose to each Business Associate, and each Business
Associate will use, disclose, and/or create Protected Health Information
(hereinafter called “PHI”)only on behalf of
Quest Diagnostics for the specific purposes set forth in this Agreement. Each
Business Associate agrees not to use or further disclose any PHI or
Individually Identifiable Health Information received from Quest Diagnostics or
created by any Business Associate other than as permitted by this Agreement or
as required by applicable law or regulations, including the Privacy Regulations
and the Security Regulations. Each Business Associate will only use or disclose
the Minimum Necessary PHI to accomplish the intended purpose of its uses or
disclosures. Each Business Associate will implement appropriate safeguards to
prevent the use or disclosure of an Individual’s PHI other than as provided for
by this Agreement or in accordance with law and shall document its safeguards. Each
Business Associate will provide access to an Individual’s PHI upon the
reasonable request of Quest Diagnostics, will make any amendments to an
Individual’s PHI as directed by Quest Diagnostics, and will maintain a record
of disclosures of PHI as required for Quest Diagnostics to make an accounting
to the Individual as required by the Privacy Regulations. Each Business
Associate will promptly report to Quest Diagnostics any use or disclosure of an
Individual’s PHI not provided for by this Agreement or any security incident
(as that term is defined in the Security Regulations) of which such Business
Associate becomes aware. In the event any Business Associate contracts with any
sub-contractors or agents and provides them with an Individual’s PHI, such Business
Associate shall include provisions in its agreements whereby the sub-contractor
or agent agrees to the same privacy and security requirements and restrictions
and conditions that apply to such Business Associate with respect to the
Individual’s PHI. Each Business Associate will, upon reasonable notice, make
its internal practices, books, and records relating to the use and disclosure
of an Individual’s PHI available to the Secretary of Health and Human Services
and to Quest 

56

Diagnostics to
the extent required for determining compliance with this Section, the Privacy
Regulations, and the Security Regulations. Notwithstanding the foregoing, no
legal privilege shall be deemed waived by any Business Associate or Quest
Diagnostics by virtue of this clause (b) of this Section. Quest Diagnostics may
terminate this Agreement without penalty or recourse if it determines that any
Business Associate has violated a material term of this Section or applicable
law that is not cured within thirty (30) calendar days after delivery of the
notice of violation to all of the Business Associates or, in lieu of
termination, Quest Diagnostics, in its sole discretion, may report the breach
to the Secretary. Upon termination of this Agreement for any reason, each
Business Associate and its sub-contractors or agents agree to return or to
destroy all PHI and retain no copies (and to certify to such actions) unless
otherwise agreed by Quest Diagnostics or such return or disclosure is not
reasonably feasible (in which case, at no additional cost to Quest Diagnostics,
each Business Associate will extend the protections of this Section to the PHI
that such Business Associate maintains and limit any further uses and
disclosures of the PHI to the purposes that make the return or destruction of
the PHI not feasible). 

                    (c)
Security. Each Business Associate shall adopt, implement and maintain
throughout the term of this Agreement security policies, procedures, and
practices, administrative, physical and technical safeguards, and security
mechanisms that reasonably and adequately protect the confidentiality,
integrity, and availability of the PHI that it creates, receives, maintains, or
transmits on behalf of Quest Diagnostics (“Business Associate Safeguards”), and each Business
Associate shall require its sub-contractors or agents to adopt Business
Associate Safeguards that are equally appropriate and adequate. Quest
Diagnostics may terminate this Agreement at any time, without penalty, if it
determines, in its sole discretion, that the Business Associate Safeguards are
unsatisfactory. 

                    (d)
EDI. If Business Associate conducts all or any portion of its business
or pays any claim in a transaction covered by the Electronic Data Interchange (“EDI”) Rule on behalf
of Quest Diagnostics, then Business Associate covenants and warrants that it
shall and shall require its agents and/or subcontractors to comply with the
requirements of the EDI Rule that are applicable to Quest Diagnostics. 

                    (e)
Benefit. This Section is not intended to create any right in or
obligations to any Person that is not a party to this Agreement, including
Individuals. 

                    (f)
Mitigation. In addition to any rights of indemnification contained in
this Agreement, each Business Associate will take commercially reasonable steps
to mitigate any harm caused by its breach of this Section and/or reimburse
Quest Diagnostics for the cost of commercially reasonable mitigation based
upon, arising out of or attributable to the acts or omissions of such Business
Associate, its employees, officers, directors, agents, or sub-contractors for
uses or disclosures in violation of this Section. 

                    (g)
Amendment. Each of the Business Associates and Quest Diagnostics agree to amend
this Section in such manner as is reasonably necessary to comply with any
amendment of (i) HIPAA or other applicable law, (ii) the Privacy Regulations,
the Security Regulations, or other applicable regulations, or (iii) any
applicable court decision or binding governmental policy. If the parties are
unable to agree on an amendment within 30 days of notice from Quest 

57

Diagnostics to
each Business Associate of the requirement to amend this Section, Quest
Diagnostics may, at its option, terminate this Agreement upon written notice to
the Business Associates. 

                    (h)
Survival. This Section and the confidentiality, privacy, security, and
other requirements established herein shall survive termination of this
Agreement. 

                    (i)
Interpretation. Any ambiguity in this Section shall be resolved in favor
of a meaning that permits Quest Diagnostics to comply with the Privacy
Regulations, the Security Regulations and the EDI Rule. 

                    (j)
Several Liability of Business Associates. No Business Associate shall
have any liability to Quest Diagnostics or any third party of any kind or
nature, whether such liability is asserted on the basis of contract, tort
(including negligence or strict liability), or otherwise, arising from the
failure of any other Business Associate to fulfill its obligations under this
Section. 

          Section
14.15 Execution in Counterparts. This Agreement may be executed in any number
of counterparts and by the different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which when taken together shall constitute one and the same Agreement. 

          Section
14.16 No Recourse Against Other Parties. The several obligations of the Lenders
under this Agreement are solely the corporate obligations of such Lender. No
recourse shall be had for the payment of any amount owing by such Lender under
this Agreement or for the payment by such Lender of any fee in respect hereof
or any other obligation or claim of or against such Lender arising out of or
based upon this Agreement, against any employee, officer, director,
incorporator or stockholder of such Lender. Each of the Borrower, the Servicer
and the Administrative Agent agrees that each of the Conduits shall be liable
for any claims that such party may have against such Conduit only to the extent
that such Conduit has excess funds and to the extent such assets are
insufficient to satisfy the obligations of such Conduit hereunder, such Conduit
shall have no liability with respect to any amount of such obligations
remaining unpaid and such unpaid amount shall not constitute a claim against
such Conduit. Any and all claims against either of the Conduits or any of the
Agents shall be subordinate to the claims against such Persons of the holders
of such Conduit’s Commercial Paper Notes and its Liquidity Banks. 

<Signature pages follow>

58

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

	
  

 	
  

 	
  

 	
  

 
	
 BORROWER:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS RECEIVABLES INC.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: Robert F. O’Keef

 	
  

 
	
  

 	
 Title:   Vice President &
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 SERVICER:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS INCORPORATED

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: Robert F. O’Keef

 	
  

 
	
  

 	
 Title:   Vice President &
 Treasurer

 	
  

 

[Signature Page to Fourth
Amended and Restated Credit and Security Agreement]

59

	
  

 	
  

 	
  

 	
  

 
	
 AGENTS:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WACHOVIA BANK, NATIONAL ASSOCIATION,

 as VFCC Agent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:   Elizabeth R. Wagner

 
	
  

 	
  

 	
 Title:       Managing Director

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK
 BRANCH,

 as Gotham Agent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:      Aditya Reddy

 	
  

 
	
  

 	
  

 	
 Title:     VP and Manager

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK
 BRANCH,

 as Administrative Agent

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:      Aditya Reddy

 	
  

 
	
  

 	
  

 	
 Title:     VP and Manager

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 LENDERS:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 VARIABLE FUNDING CAPITAL COMPANY LLC

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BY:

 	
 WACHOVIA CAPITAL MARKETS, LLC, ITS ATTORNEY-IN-FACT

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:   Douglas R. Wilson, Sr.

 	
  

 
	
  

 	
  

 	
 Title:               Director

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Initial Commitment: not applicable

 	
  

 

[Signature Page to Fourth
Amended and Restated Credit and Security Agreement]

60

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WACHOVIA BANK, NATIONAL ASSOCIATION

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:   Elizabeth R. Wagner

 	
  

 
	
  

 	
  

 	
 Title:       Managing Director

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Initial Commitment: $125,000,000

 	
  

 

[Signature Page to Fourth
Amended and Restated Credit and Security Agreement]

61

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 GOTHAM FUNDING CORPORATION

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:    R.
 Douglas Donaldson

 	
  

 
	
  

 	
  

 	
 Title:                Treasurer

 	
  

 
	
  

 	
  

 	
 Initial Commitment: not applicable

 

[Signature Page to Fourth
Amended and Restated Credit and Security Agreement]

62

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK
 BRANCH,

 as a Liquidity Bank

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name:               J. Carlos

 	
  

 
	
  

 	
  

 	
 Title:      Authorized Signatory

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Initial Commitment: $275,000,000

 	
  

 

[Signature Page to
Fourth Amended and Restated Credit and Security Agreement]

63

ANNEX A 

DEFINITIONS

                    A. Certain Defined Terms. As used in
this Agreement: 

                    “Account” shall
have the meaning specified in Article 9 of the UCC. 

                    “Accrual Period”
means each calendar month, provided
that the initial Accrual Period hereunder means the period from
(and including) the date of the initial Loan hereunder to (and including) the
last day of the calendar month thereafter. 

                    “Ad Hoc Reserve” means
0% or such higher percentage as the Servicer and the Agents may agree upon in
writing from time to time. 

                    “Administrative Agent”
has the meaning provided in the preamble of this Agreement. 

                    “Adjusted Dilution Ratio”
means, at any time, the rolling average of the Dilution Ratio for the 12 months
then most recently ended. 

                    “Advance” means a
borrowing hereunder consisting of the aggregate amount of the several Loans
made on the same Borrowing Date. 

                    “Affected Party”
means each of the Conduits, the Liquidity Banks and the Agents. 

                    “Affiliate” means,
as to any Person, any other Person which, directly or indirectly, is in control
of, is controlled by, or is under common control with, such Person. A Person
shall be deemed to control another Person if the controlling Person possesses,
directly or indirectly, the power to direct or cause the direction of the
management and policies of the other Person, whether through the ownership of
voting securities, membership interests, by contract, or otherwise. 

                    “Affiliated Obligor” in
relation to any Obligor means an Obligor that is an Affiliate of such Obligor. 

                    “Agents” means the
Administrative Agent and the Co-Agents. 

                    “Aggregate Commitment” means
the aggregate of the Commitments of the Liquidity Banks, as reduced or
increased from time to time pursuant to the terms hereof. 

                    “Agreement” means
this Fourth Amended and Restated Credit and Security Agreement, as it may be
amended or modified and in effect from time to time. 

                    “Allocation Limit”
means the sum of the VFCC Allocation Limit and the Gotham Allocation Limit. 

A-1

                    “Alternate Base Rate”
means for any day, the rate per annum
equal to the higher as of such day of (i) the Prime Rate, or (ii) one-half of
one percent (0.50%) above the Federal Funds Rate. For purposes of determining
the Alternate Base Rate for any day, changes in the Prime Rate or the Federal
Funds Rate shall be effective on the date of each such change. 

                    “Alternate Base Rate Loan”
means a Loan which bears interest at the Alternate Base Rate or the Default
Rate. 

                    “Applicable Percentage” means
(a) if a Conduit puts a Loan to its Liquidity Banks solely due to a problem
issuing Commercial Paper and not because of performance issues with the
Collateral, credit issues with the Loan Parties or the existence of an Event of
Default or Unmatured Default, the percentage representing the “margin” or
“spread” for Eurodollar or LIBOR loans specified in the Credit Agreement minus 10 basis points, and (b) at all
other times, the percentage representing the “margin” or “spread” for
Eurodollar or LIBOR loans specified in the Credit Agreement. 

                    “Approved Amendment”
means any of the following amendments and waivers, to the Credit Agreement,
howsoever evidenced: 

	
  

 	
  

 
	
  

 	
           (a)
 until such time (if any) that Quest Diagnostics’ long-term senior unsecured
 debt rating from Moody’s is raised above Ba1, and for so long as Quest
 Diagnostics’ long-term senior unsecured debt ratings remain at BBB- or higher
 from S&P and at (but not below) Ba1 from Moody’s, any amendment to or
 waiver of the Credit Agreement to which the requisite banks under the Credit
 Agreement consent, 

 
	
  

 	
  

 
	
  

 	
           (b)
 after the time (if any) that Quest Diagnostics’ long-term senior unsecured
 debt rating from Moody’s is raised to Baa3 or higher, and for so long as
 Quest Diagnostics’ long-term senior unsecured debt ratings remain at BBB- or
 higher from S&P and at Baa3 or higher from Moody’s, any amendment to or
 waiver of the Credit Agreement to which the requisite banks under the Credit
 Agreement consent, and 

 
	
  

 	
  

 
	
  

 	
           (c)
 at any time while Quest Diagnostics’ long-term senior unsecured debt rating
 from either S&P or Moody’s fails to meet the applicable minimum level set
 forth in (a) or (b) above or any such minimum rating is classified as being
 on “negative watch” or the equivalent, any amendment to or waiver of the
 Credit Agreement approved by the requisite banks under the Credit Agreement and to which either (x) each of the
 Co-Agents (acting in its capacity as such under this Agreement) gives its
 written consent on or within 30 days after receipt of a copy of the proposed
 amendment or waiver, or (y) one or two of the Co-Agents but not all of the
 Co-Agents gives its written consent on or within 30 days after receipt of a
 copy of the proposed amendment (but not waiver) and the Obligations owing
 each dissenting Co-Agent’s Group are paid in full on or within 60 days after
 such 30th day. 

 

                    “Article” means an
article of this Agreement unless another document is specifically referenced. 

A-2

                    “Authorized Officer” means
with respect to either Loan Party, any of the following, acting singly: its
chief executive officer, its president, its vice president-finance, its
treasurer or its secretary. 

                    “Borrower” has the
meaning provided in the preamble of this Agreement. 

                    “Borrowing Base”
means, on any date of determination, the Net Pool Balance as of the last day of
the period covered by the most recent Monthly Report, minus the Required Reserve as of the last
day of the period covered by the most recent Monthly Report. 

                    “Borrowing Date” means
a date on which an Advance is made hereunder. 

                    “Borrowing Request”
is defined in Section 2.1. 

                   “Broken Funding Costs”
means, for any CP Rate Loan which: (a) has its principal reduced without
compliance by the Borrower with the notice requirements hereunder or (b) is not
prepaid in the amount specified in a Prepayment Notice on the date specified
therein or (c) is assigned or otherwise transferred by the applicable Conduit
to its respective Liquidity Banks under its respective Liquidity Agreement or
terminated prior to the date on which it was originally scheduled to end or (d)
in the case of Gotham while it is not a Pool Funded Conduit, is prepaid in an
aggregate principal amount in excess of the aggregate Face Value of Gotham’s
Commercial Paper Notes issued to fund its CP Rate Loan which matures on the
date of prepayment, an amount equal to: 

	
  

 	
  

 
	
  

 	
 (i) in the
 case of any Pool Funded Conduit, the excess, if any, of (A) the CP Costs that
 would have accrued during the remainder of the applicable commercial paper
 tranche periods determined by the applicable Co-Agent to relate to such Loan
 subsequent to the date of such reduction, assignment or termination (or in
 respect of clause (b) above, the date such prepayment was designated to occur
 pursuant to the applicable Prepayment Notice) of the principal of such CP
 Rate Loan if such reduction, assignment or termination had not occurred or
 such Prepayment Notice had not been delivered, over (B) the sum of (x) to the
 extent all or a portion of such principal is allocated to another CP Rate
 Loan, the amount of CP Costs actually accrued during the remainder of such
 period on such principal for the new Loan, and (y) to the extent such
 principal is not allocated to another CP Rate Loan, the income, if any,
 actually received during the remainder of such period by the holder of such
 Loan from investing the portion of such principal not so allocated; and 

 
	
  

 	
  

 
	
  

 	
 (ii) in the
 case of Gotham when it is not acting as a Pool Funded Conduit, the excess, if
 any, of (A) the Interest at the CP Rate that would have accrued during the
 remainder of the applicable CP Tranche Periods as determined by the Gotham
 Agent to relate to such CP Rate Loan subsequent to the date of such
 reduction, assignment or termination (or in respect of clause (b) above, the
 date such prepayment was designated to occur pursuant to the applicable
 Prepayment Notice) of the principal of such CP Rate Loan if such reduction,
 assignment or termination had not occurred or such Prepayment Notice had not
 been delivered, over (B) the sum of (x) to the extent all or a portion of
 such principal is allocated to another CP Rate Loan, the amount of Interest
 at the CP Rate actually 

 

A-3

	
  

 	
  

 
	
  

 	
 accrued
 during the remainder of such period on such principal for the new Loan, and
 (y) to the extent such principal is not allocated to another CP Rate Loan,
 the income, if any, actually received during the remainder of such period by
 the holder of such Loan from investing the portion of such principal not so
 allocated. 

 

                    “BTMU” has the
meaning provided in the preamble of this Agreement. 

                    “BTMU Roles” has the
meaning set forth in Section 11.10(b). 

                    “Business Associate”
has the meaning set forth in Section 14.14. 

                    “Business Associate Safeguards” has the meaning set forth in Section
14.14. 

                    “Business Day” means
any day on which banks are not authorized or required to close in New York, New
York, Atlanta, Georgia, Chicago, Illinois or Teterboro, New Jersey, and The
Depository Trust Company of New York is open for business, and if the
applicable Business Day relates to any computation or payment to be made with
respect to the Eurodollar Rate (Reserve Adjusted), any day on which dealings in
dollar deposits are carried on in the London interbank market. 

                    “Cash Collateral Payment”
means, on any date of determination, the dollar amount resulting from the
product of (i) the arithmetic average of the dollar amount of cash collections
from the 4 immediately preceding Report Weeks and (ii) the result of dividing
(a) the then aggregate outstanding principal balance of the Advances by (b) the
aggregate Unpaid Net Balance of all Receivables, as reflected on the most
recent prior Monthly Report. 

                    “Change in Control”
means: 

	
  

 	
  

 
	
  

 	
           (a)
 the failure of Quest Diagnostics to own (directly or through one or more
 wholly-owned Subsidiaries of Quest Diagnostics) 100% of the issued and
 outstanding Equity Interests (including all Equity Rights) of the Borrower; 

 
	
  

 	
  

 
	
  

 	
           (b)
 the failure of Quest Diagnostics to own (directly or through one or more
 wholly-owned Subsidiaries of Quest Diagnostics) 100%, on a fully-diluted
 basis, of the issued and outstanding Equity Interests (including all Equity
 Rights) of each of the other Originators; provided, however, that no Change in
 Control shall be deemed to have occurred under this clause (b) if, in any
 calendar year, Quest Diagnostics ceases to beneficially own (directly or
 through one or more wholly-owned Subsidiaries of Quest Diagnostics) 100%, on
 a fully diluted basis, of the issued and outstanding Equity Interests
 (including all Equity Rights) of any Originator or Originators whose Net
 Receivables as of the last day of the prior calendar year did not represent
 more than 10% of the Net Receivables of all Originators as of the last day of
 such prior calendar year; or 

 
	
  

 	
  

 
	
  

 	
           (c)
 (i) any Person or any group shall (A) beneficially own (directly or
 indirectly) in the aggregate Equity Interests of Quest Diagnostics having 35%
 or more of the aggregate voting power of all Equity Interests of Quest
 Diagnostics at the time outstanding or (B) have the right or power to appoint
 a majority of the board of directors of Quest Diagnostics; or (ii) during any
 period of two consecutive years, individuals who 

 

A-4

	
  

 	
  

 
	
  

 	
 at the
 beginning of such period constituted the board of directors of Quest
 Diagnostics (together with any new directors whose election by such board of
 directors or whose nomination for election by the shareholders of Quest
 Diagnostics was approved by a vote of a majority of the directors of Quest
 Diagnostics then still in office who were either directors at the beginning
 of such period or whose election or nomination for election was previously so
 approved) cease for any reason to constitute at least a majority of the board
 of directors of Quest Diagnostics then in office. 

 

For purposes
of this definition, the terms “beneficially own” and “group” shall have the
respective meanings ascribed to them pursuant to Section 13(d) of the Exchange
Act, except that a Person or group shall be deemed to “beneficially own” all
securities that such Person or group has the right to acquire, whether such
right is exercisable immediately or only after the passage of time. 

                    “Client-Billed Receivable” means
a Receivable booked in the “client-billed receivables” category of accounts
receivable in the billing and accounting process of the applicable Originator
owing from a physician, hospital or other institutional Obligor (including a
Governmental Authority or affiliated Obligor) which is billed monthly in
arrears for the services provided with pricing typically based on a negotiated
fee schedule. For the avoidance of doubt, no Client-Billed Receivable would be
(a) a “Government Receivable” of
the type described in clause (i), (ii) or (iii) of the definition of such term,
or (b) owing from another payor type such as an individual “self-pay” patient
or an insurance company or managed care plan. 

                    “Client-Billed Receivables for the Reserve
Computation” means, at any time, an amount
determined by multiplying the Client-Billed Receivables Percentage by Net
Receivables. 

                    “Client-Billed Receivables Percentage” means,
at any time, the percentage equal to (a) the Unpaid Net Balance of all
Client-Billed Receivables, divided by (b) the reported Unpaid Net Balance of
all Receivables, in each of the foregoing cases, determined as of the last day
of the calendar month then most recently ended. 

                    “Clinical Laboratory Services” means
clinical laboratory, anatomic pathology or other diagnostics testing services
(including, without limitation, routine and esoteric clinical laboratory
services (including genetics testing), clinical laboratory services involved
with clinical trials, point-of-care testing, clinical laboratory services
involving corporate healthcare and services involved with managing hospital
laboratories), health screening and risk assessment services, and information
services involving the provision of data or information programs, services or
products which substantially consists of laboratory or other medical data. 

                    
“Co-Agents” has
the meaning provided in the preamble of this Agreement. 

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

                    “Collateral” has
the meaning set forth in Section 9.1. 

                    “Collateral Account” has
the meaning set forth in Section 7.1(i)(iv). 

A-5

                    “Collection Account” means
each concentration account, depositary account, lockbox account or similar
account into which proceeds of Receivables are deposited. 

                    “Collection Account Agreement” means
an agreement in form reasonably acceptable to the Administrative Agent and the
Borrower by and among a Collection Bank at which a Lockbox or Collection
Account is maintained, the applicable Originator (if such Lockbox or Collection
Account is in the name of an Originator), the Borrower and the Administrative
Agent (either directly or as assignee of the Borrower). 

                    “Collection Bank”
means any of the banks holding one or more Collection Accounts or Lockboxes. 

                    “Collections”
means, (a) with respect to any Receivable, all funds which either (i) are
received from or on behalf of the related Obligor in payment of any amounts
owed (including, without limitation, purchase prices, finance charges, interest
and all other charges) in respect of such Receivable, or applied to such
amounts owed by such Obligor (including, without limitation, payments that the
Borrower, any Originator or the Servicer receives from third party payors and
applies in the ordinary course of its business to amounts owed in respect of
such Receivable and net proceeds of sale or other disposition of repossessed
goods or other collateral or property of the Obligor or any other party
directly or indirectly liable for payment of such Receivable and available to
be applied thereon), or (ii) are Deemed Collections, and (b) with respect to
any Demand Advance, any payment of principal or interest in respect thereof and
any Permitted Investments and the proceeds thereof made with any such payment. 

                    “Collections Ratio”
means Collections divided by the reported Unpaid Net Balance of all Receivables
determined as of the last day of the calendar month then most recently ended. 

                    “Commercial Paper Notes” means
the commercial paper promissory notes, if any, issued by or on behalf of either
of the Conduits to fund, in whole or in part, any of its CP Rate Loans. 

                    “Commitment” means,
for each Liquidity Bank, its obligation to make Loans not exceeding the amount
set forth opposite its signature to the Agreement, as such amount may be modified
from time to time pursuant to the terms hereof. 

                    “Commitment Percentage” means,
for each Group on any date of determination, the ratio which the sum the
Commitments of the Liquidity Banks in such Group bears to the Aggregate
Commitment. 

                    “Commitment Reduction Notice”
has the meaning set forth in Section 1.6. 

                    “Conduits” means,
collectively, VFCC and Gotham. 

                    “Constituent” means
(a) as to the Gotham Agent, any member of the Gotham Group from time to time
party hereto, and (b) as to the VFCC Agent, any member of the VFCC Group from
time to time party hereto, and when used as an adjective, “Constituent” shall have a correlative
meaning. 

A-6

                    “Contract”
means, with respect to any Receivable, any requisition, purchase order,
agreement, contract or other writing with respect to the provision of services
by an Originator to an Obligor other than (i) an Invoice, and (ii) any confidential
patient information including, without limitation, test results. 

                    “Contractual
Disallowance” means an amount which represents the
amount by which a Receivable is, consistent with usage and practices in the
applicable Originator’s industry, expected to be reduced prior to payment by
the Obligor thereon. 

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

                    “CP
Costs” means, for each day for VFCC, the sum of
(i) discount or interest accrued on such Conduit’s Pooled Commercial Paper on
such day, plus (ii) any and all accrued commissions in respect of its placement
agents and its commercial paper dealers, and issuing and paying agent fees
incurred, in respect of such Conduit’s Pooled Commercial Paper for such day,
plus (iii) other costs associated with funding small or odd-lot amounts with
respect to all receivable purchase or financing facilities which are funded by
such Conduit’s Pooled Commercial Paper for such day, minus (iv) any accrual of
income net of expenses received by or on behalf of such Conduit on such day
from investment of collections received under all receivable purchase or
financing facilities funded substantially with such Conduit’s Pooled Commercial
Paper, minus (v) any payment received on such day net of expenses in respect of
such Conduit’s Broken Funding Costs related to the prepayment of any investment
of VFCC pursuant to the terms of any receivable purchase or financing
facilities funded substantially with its Pooled Commercial Paper. In addition
to the foregoing costs, if the Borrower (or the Servicer, on the Borrower’s
behalf) shall request any Advance during any period of time determined by the
VFCC Agent in its sole discretion to result in incrementally higher CP Costs
applicable to VFCC’s Loan included in such Advance, the principal associated
with any such Loan of VFCC shall, during such period, be deemed to be funded by
VFCC in a special pool (which may include capital associated with other
receivable purchase or financing facilities) for purposes of determining such
additional CP Costs applicable only to such special pool and charged each day
during such period against such principal. 

	
  

 	
  

 
	
  

 	
           “CP
 Rate” means: 

 
	
  

 	
  

 
	
  

 	
           (a)
 with respect to each of the Pool Funded Conduits for any CP Tranche Period,
 the per annum interest rate
 that, when applied to the outstanding principal balance of such Pool Funded
 Conduits’ CP Rate Loans for the actual number of days elapsed in such CP
 Tranche Period, would result in an amount of accrued interest equivalent to
 such Pool Funded Conduits’ CP Costs for such CP Tranche Period; and 

 
	
  

 	
  

 
	
  

 	
           (b)
 with respect to Gotham, unless it has notified the Loan Parties that it will
 be pool funding its Loans, for any CP Tranche Period and with respect to any
 Loan (or portion thereof) funded by Commercial Paper Notes issued by Gotham,
 a rate per annum calculated by
 the Gotham Agent to reflect Gotham’s cost of funding such Loan (or 

 

A-7

	
  

 	
  

 
	
  

 	
 portion
 thereof), taking into account the weighted daily average interest rate
 payable in respect of such Commercial Paper Notes during such CP Tranche
 Period (determined in the case of discount commercial paper by converting the
 discount to an interest-bearing equivalent rate per annum), applicable placement fees and commissions, and
 such other costs and expenses as the Gotham Agent in good faith deems
 appropriate. Such Commercial Paper Notes may be issued in such maturities as
 the Gotham Agent may choose in accordance with Article II hereof. Gotham’s CP
 Rate shall be determined by the Gotham Agent, in its sole discretion. 

 
	
  

 	
  

 
	
  

 	
           “CP
 Rate Loan” means a Loan made by either of the
 Conduits which bears interest at a CP Rate. 

 
	
  

 	
  

 
	
  

 	
           “CP
 Tranche Period” means: 

 
	
  

 	
  

 
	
  

 	
           (a)
 with respect to the Pool Funded Conduits, an Accrual Period, and 

 
	
  

 	
  

 
	
  

 	
           (b)
 with respect to Gotham, a period selected by the Gotham Agent pursuant to
 Section 2.2; provided,
 however, that if any such CP Tranche Period would end on a day
 which is not a Business Day, such CP Tranche Period shall end on the
 preceding Business Day. 

 

                    “Credit
Agreement” means that certain Credit Agreement
dated as of May 31, 2007 among Quest Diagnostics, as borrower, certain of its
Subsidiaries, as guarantors, the lenders from time to time party thereto, and
Bank of America, N.A., as administrative agent and issuing lender, as modified
from time to time by one or more Approved Amendments. 

                    “Credit
and Collection Policy” means those credit and collection
policies and practices of the Originators relating to Contracts and
Receivables, copies or summaries of which are attached as Exhibit C to the Sale
Agreement, as the same may be modified from time to time without violating
Section 7.3(c) of this Agreement. 

                    “Cut-Off
Date” means the last day of each calendar month. 

                    “Days
Sales Outstanding” means, as of any day, an amount
equal to the product of (x) 91, multiplied by (y) the amount obtained by
dividing (i) the reported aggregate Unpaid Net Balance of Receivables as of the
most recent Cut-Off Date, by (ii) the aggregate Net Revenues generated by the
Originators during the three
calendar months including and immediately preceding such Cut-Off Date. 

                    “Deemed
Collections” means Collections deemed received by
the Borrower under Section 3.4. 

                    “Default
Rate” means a rate per annum equal to the sum of (i) the Alternate Base Rate
plus (ii) 2.00%, changing when and as the Alternate Base Rate changes. 

                    “Default
Horizon Ratio” means, as of any Cut-Off Date, the
ratio (expressed as a decimal) computed by dividing (i) the aggregate amount of
Net Revenues generated by the 

A-8

Originators
during the five months ending on such Cut-Off Date, by (ii) the Net Pool
Balance as of such Cut-Off Date. 

                    “Default
Ratio” means, as of any Cut-Off Date, the ratio
(expressed as a percentage) computed by dividing (i) the total amount of
Receivables that became Defaulted Receivables (151-180 days past invoice)
during the month that includes such Cut-Off Date, by (ii) the aggregate amount
of Net Revenues generated by the Originators during the month occurring five
months prior to the month ending on such Cut-Off Date. 

                    “Default
Trigger Ratio” means, as of any Cut-Off Date, the
ratio (expressed as a percentage) computed by dividing (i)(a) the total amount
of receivables 151-180 days past invoice, (b) as to which the obligor thereof
has suffered an event of bankruptcy or (c) which, consistent with the
Originators’ billing systems’ procedures, should be written off as
uncollectible, by (ii) the aggregate amount of Net Revenues generated by the
Originators during the month occurring five months prior to the month ending on
such Cut-Off Date. 

                    “Defaulted
Receivable” means a Receivable: (i) as to which
the obligor thereof has suffered an event of bankruptcy; (ii) which, consistent
with the Originators’ billing systems’ procedures, should be written off as
uncollectible; or (iii) as to which any payment, or part thereof, remains
unpaid for 151 days or more from the original invoice date for such payment. 

                    “Delinquency
Ratio” means, at any time, a percentage equal to
(i) Delinquent Receivables at such time divided by (ii) the reported aggregate
Unpaid Net Balance of Receivables at such time. 

                    “Delinquent
Receivable” means a Receivable as to which any
payment, or part thereof, remains unpaid for 121-150 days from the original
invoice date for such payment. 

                    “Demand
Advance” means an advance made by the Borrower to
Quest Diagnostics on any day prior to the Termination Date which is not a
Settlement Date on which no Event of Default or Unmatured Default exists and is
continuing, which advance (a) is payable upon demand, (b) is not evidenced by
an instrument, chattel paper or a certificated security, (c) bears interest at
a market rate determined by the Borrower and the Servicer from time to time,
(d) is not subordinated to any other Indebtedness or obligation of Quest
Diagnostics, and (e) may not be offset by Quest Diagnostics against amounts due
and owing from the Borrower to Quest Diagnostics under its Subordinated Note. 

                    “Dilution”
means, total Net Revenues multiplied by the three month average calculated
quarterly of (i) (a) for Originators on the QBS an amount equal to the dollar
amount of adjustments measured by QBS adjustment codes 66, 70, 71, 72, 74, 75,
76, 83, 85 for client and patient Receivables, plus (b) an amount equal to 0.30
times the dollar amount of adjustments measured by the QBS adjustment codes 66,
70, 71, 72, 74, 75, 76, 83, 85 for third party Receivables, plus (c) 0.70
multiplied by the dollar amount of adjustments measured by QBS adjustment code
68 for client and patient Receivables, excluding transfers between client and
patient billing categories, divided by (ii) the Net Revenues generated by
Originators on QBS. 

                    “Dilution
Horizon Ratio” means, as of any Cut-Off Date, a
ratio (expressed as a decimal), computed by dividing (i) the aggregate Net
Revenues generated by the Originators 

A-9

during the one month ending on such Cut-Off Date, by (ii)
the Net Pool Balance as of such Cut-Off Date. 

                    “Dilution
Ratio” means, as of any Cut-Off Date, a ratio
(expressed as a percentage), computed by dividing (i) the total amount of
decreases in outstanding principal balances due to Dilution during the month
ending on such Cut-Off Date, by (ii) the aggregate Net Revenues generated by
the Originators ending on such Cut-Off Date one month prior. 

                    “Dilution
Reserve” means, for any month, the product
(expressed as a percentage) of: (a) the sum of (i) 1.5 times the Adjusted Dilution Ratio as of
the immediately preceding Cut-Off Date, plus
(ii) the Dilution Volatility Component as of the immediately preceding Cut-Off
Date, times (b) the Dilution Horizon Ratio as of the immediately
preceding Cut-Off Date. 

                    “Dilution
Volatility Component” means the product (expressed
as a percentage) of (i) the difference between (a) the highest three (3)-month
rolling average Dilution Ratio over the past 12 months and (b) the Adjusted
Dilution Ratio, and (ii) a fraction, the numerator of which is equal to the
amount calculated in (i)(a) of this definition and the denominator of which is
equal to the amount calculated in (i)(b) of this definition. 

                    “Disallowed
Receivable” means a Receivable for which payment
is not expected to be received by the applicable Originator. 

                    “Dollars”
means dollars in lawful money of the United States
of America. 

                    “Downgraded
Liquidity Bank” means a VFCC Liquidity Bank which
becomes the subject of a Downgrading Event. 

                    “Downgrading
Event” with respect to any Person means the
lowering of the rating with regard to the short-term securities of such Person
to below (i) A-1 by S&P, (ii) P-1 by Moody’s, or (if applicable) (iii) F1
by Fitch. 

                    “Eligible
Assignee” means (a) any “bankruptcy remote”
special purpose entity which is administered by Wachovia or BTMU (or any
Affiliate of Wachovia or BTMU) or any Qualifying Liquidity Bank (or any
Affiliate of a Qualifying Liquidity Bank) that is in the business of acquiring
or financing receivables, securities and/or other financial assets and which
issues commercial paper notes that are rated at least A-1 by S&P, P-1 by
Moody’s and, if applicable, F1 by Fitch, (b) any Qualifying Liquidity Bank, or
(c) in the case of VFCC, any Downgraded Liquidity Bank whose liquidity
commitment has been fully drawn by the VFCC Agent and funded into a collateral
account. 

                    “Eligible
Originator” means any of (a) Quest Diagnostics,
(b) Quest Diagnostics Incorporated a Michigan corporation, Quest Diagnostics
Incorporated, a Maryland corporation, Quest Diagnostics Incorporated, a
California corporation, Quest Diagnostics LLC, a Connecticut limited liability
company, Quest Diagnostics LLC, a Massachusetts limited liability company,
Quest Diagnostics of Pennsylvania Inc., a Delaware corporation, MetWest Inc., a
Delaware corporation, Quest Diagnostic Clinical Laboratories Inc., a Delaware
corporation, Quest Diagnostics LLC, an Illinois limited liability company,
Unilab Corporation, a Delaware 

A-10

corporation,
Quest Diagnostics Nichols Institute, Inc., a Virginia corporation formerly
known as Medical Laboratories Corporation, Inc., Quest Diagnostics
Incorporated, a Nevada corporation formerly known as APL Healthcare Group,
Inc., and (c) each of the other direct or indirect, wholly-owned Subsidiaries
of Quest Diagnostics who (with the consent of the Co-Agents if such Subsidiary
constitutes a Material Proposed Addition) becomes a “seller” party to the Sale
Agreement by executing a Joinder Agreement and complying with the conditions
set forth in Article V of the Sale Agreement. 

	
  

 	
  

 
	
  

 	
           “Eligible
 Receivable” means, at any time:

 
	
  

 	
  

 
	
  

 	
           (a)
 a Receivable which arises out of the provision or sale of Clinical Laboratory
 Services by an Eligible Originator in the ordinary course of its business
 that has been sold or contributed by such Originator to the Borrower pursuant
 to the Sale Agreement in a “true sale” or “true contribution” transaction; 

 
	
  

 	
  

 
	
  

 	
           (b)
 a Receivable as to which the perfection of the Administrative Agent’s
 security interest, on behalf of the Secured Parties, is governed by the laws
 of a jurisdiction where the Uniform Commercial Code-Secured Transactions is
 in force, and which constitutes an “account” or a “payment intangible” (each
 as defined in the Uniform Commercial Code as in effect in any relevant
 jurisdiction); 

 
	
  

 	
  

 
	
  

 	
           (c)
 a Receivable the Obligor of which is resident of the United States or any of
 its possessions or territories, and is not an Affiliate of any Loan Party or
 Originator; 

 
	
  

 	
  

 
	
  

 	
           (d)
 a Receivable which is not a Disallowed Receivable at such time; 

 
	
  

 	
  

 
	
  

 	
           (e)
 the portion of a Receivable which is not an Ineligible Defaulted Receivable
 at such time; 

 
	
  

 	
  

 
	
  

 	
           (f)
 a Receivable with regard to which the representations and warranties of the
 Borrower in Sections 6.1(j), (l) and (p) are
 true and correct; 

 
	
  

 	
  

 
	
  

 	
           (g)
 a Receivable with regard to which the granting of a security interest therein
 does not contravene or conflict with any law; 

 
	
  

 	
  

 
	
  

 	
           (h)
 a Receivable which is denominated and payable only in Dollars in the United
 States; 

 
	
  

 	
  

 
	
  

 	
           (i)
 a Receivable which constitutes the legal, valid and binding obligation of the
 Obligor of such Receivable enforceable against such Obligor in accordance
 with its terms and is not subject to any actual or reasonably expected
 dispute, offset (except as provided below), counterclaim or defense whatsoever;
 provided, however,
 that if such dispute, offset, counterclaim or defense affects only a portion
 of the Unpaid Net Balance of such Receivable, then such Receivable may be
 deemed an Eligible Receivable to the extent of the portion of such Unpaid Net
 Balance which is not so affected; 

 
	
  

 	
  

 
	
  

 	
           (j)
 a Receivable which, together with any Contract related thereto, does not
 contravene in any material respect any laws, rules or regulations applicable
 thereto 

 

A-11

	
  

 	
  

 
	
  

 	
 (including,
 without limitation, laws, rules and regulations relating to usury, truth in
 lending, fair credit billing, fair credit reporting, equal credit
 opportunity, fair debt collection practices and privacy) and with respect to
 which no party to the Contract related thereto is in violation of any such
 law, rule or regulation in any material respect if such violation would
 impair the collectibility of such Receivable; 

 
	
  

 	
  

 
	
  

 	
           
 (k) a Receivable which satisfies in all material respects all applicable
 requirements of the applicable Eligible Originator’s Credit and Collection
 Policy; 

 
	
  

 	
  

 
	
  

 	
           (l)
 a Receivable which is due and payable within 60 days from the invoice date of such Receivable; 

 
	
  

 	
  

 
	
  

 	
           (m)
 [intentionally omitted]; 

 
	
  

 	
  

 
	
  

 	
           (n)
 a Receivable the original term of which has not been extended (except as
 permitted in Section 8.2(c)); 

 
	
  

 	
  

 
	
  

 	
           (o)
 a Receivable which has not been identified, either specifically or as a
 member of a class, in a notice by any of the Agents, in the exercise of its
 commercially reasonable credit judgment, as a Receivable that is not
 acceptable, including, without limitation, because such Receivables arises
 under an unreasonable Contract that is not acceptable to such Agent; and 

 
	
  

 	
  

 
	
  

 	
           (p)
 if the applicable Eligible Originator acquired such Receivable through a
 Material Acquisition as to which the Administrative Agent is permitted to and
 has, in fact, conducted, a Review in accordance with Section 7.1(c), the
 Administrative Agent has notified the Borrower in writing that (i) such
 Receivable is (and other similarly-acquired Receivables are) acceptable to
 the Agents based on the satisfactory outcome of such Review, and (ii) each
 Conduit’s Rating Agency Condition has been satisfied. 

 

                    
“Employee Benefit Plan” means an employee benefit
plan (as defined in Section 3(3) of ERISA) that is maintained or contributed to
by any ERISA Entity or with respect to which Quest Diagnostics or a Subsidiary
could incur liability. 

                    “Equity
Interests” means, with respect to any Person, any
and all shares, interests, participations or other equivalents, including
membership interests (however designated, whether voting or non-voting), of
capital of such Person, including, if such Person is a partnership, partnership
interests (whether general or limited) and any other interest or participation
that confers on a Person the right to receive a share of the profits and losses
of, or distributions of assets of, such partnership, whether outstanding on the
date hereof or issued after the date of this Agreement. 

                    “Equity
Rights” means, with respect to any Person, any
outstanding subscriptions, options, warrants, commitments, preemptive rights or
agreements of any kind (including any stockholders’ or voting trust agreements)
for the issuance, sale, registration or voting of, or outstanding securities
convertible into, any additional shares of Equity Interests of any class, or
partnership or other ownership interests of any type in, such Person. 

A-12

                    
“ERISA” means the United States Employee
Retirement Income Security Act of 1974, as amended. 

                    
“ERISA Entity” means any member of an ERISA Group.

                    
“ERISA Event” means (a) any Reportable Event with
respect to a Pension Plan; (b) with respect to any Pension Plan of a failure to
meet the applicable minimum funding standard (as defined in Section 412 of the
Code or Section 302 of ERISA), whether or not waived, the failure to make by
its due date a required installment under Section 303(j) of ERISA with respect
to any Pension Plan or the failure to make any required contribution to a
Multiemployer Plan; (c) the filing pursuant to Section 412(c) of the Code or
Section 302(c) of ERISA of an application for a waiver of the minimum funding
standard with respect to any Pension Plan; (d) the incurrence by any ERISA
Entity of any liability under Title IV of ERISA with respect to the termination
of any Pension Plan; (e) the receipt by any ERISA Entity from the PBGC or a
plan administrator of any notice relating to an intention to terminate any
Pension Plan or to appoint a trustee to administer any Pension Plan, or the
occurrence of any event or condition which could constitute grounds under ERISA
for the termination of, or the appointment of a trustee to administer, any
Pension Plan; (f) the incurrence by any ERISA Entity of any liability with
respect to the withdrawal or partial withdrawal from any Pension Plan or
Multiemployer Plan; (g) the receipt by an ERISA Entity of any notice, or the
receipt by any Multiemployer Plan from any ERISA Entity of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA; (h) the making of any amendment to any
Pension Plan which could result in the imposition of a lien or the posting of a
bond or other security; or (i) the occurrence of a nonexempt prohibited
transaction (within the meaning of Section 4975 of the Code or Section 406 of
ERISA) which could result in liability to any Loan Party. 

                    “ERISA
Group” means any Loan Party and all members of a
controlled group of corporations and all trades or businesses (whether or not
incorporated) under common control which, together with such Loan Party, are
treated as a single employer under Section 414 of the Code. 

                    “Eurodollar
Loan” means a Loan which bears interest at the
applicable Eurodollar Rate. 

                    “Eurodollar
Rate” means, for any Interest Period, the rate per annum determined on the basis of the
offered rate for deposits in Dollars of amounts equal or comparable to the
principal amount of the related Liquidity Funding offered for a term comparable
to such Interest Period, which rates appear on a Bloomberg L.P. terminal,
displayed under the address “US001M <Index> Q <Go>“ effective as of
11:00 a.m., London time, two Business Days prior to the first day of such Interest
Period, provided that
if no such offered rates appear on such page, the Eurodollar Rate for such
Interest Period will be the arithmetic average (rounded upwards, if necessary,
to the next higher 1/100th of 1%) of rates quoted by not less than two major
banks in New York City, selected by the Co-Agents, at approximately 10:00 a.m.,
New York City time, two Business Days prior to the first day of such Interest
Period, for deposits in Dollars offered by 

A-13

leading
European banks for a period comparable to such Interest Period in an amount
comparable to the principal amount of such Liquidity Funding. 

                    “Eurodollar
Rate (Reserve Adjusted)” applicable to any
Interest Period means a rate per annum
equal to the quotient obtained (rounded upwards, if necessary, to the next
higher 1/100th of 1%) by dividing (i) the applicable Eurodollar Rate for such
Interest Period by (ii) 1.00 minus the Eurodollar Reserve Percentage. 

                    “Eurodollar
Reserve Percentage” means, with respect to any Interest
Period, the maximum reserve percentage, if any, applicable to a Liquidity Bank
under Regulation D during such Interest Period (or if more than one percentage
shall be applicable, the daily average of such percentages for those days in
such Interest Period during which any such percentage shall be applicable) for
determining such Liquidity Bank’s reserve requirement (including any marginal,
supplemental or emergency reserves) with respect to liabilities or assets
having a term comparable to such Interest Period consisting or included in the
computation of “Eurocurrency Liabilities” pursuant to Regulation D. Without
limiting the effect of the foregoing, the Eurodollar Reserve Percentage shall
reflect any other reserves required to be maintained by such Liquidity Bank by
reason of any Regulatory Change against (a) any category of liabilities which
includes deposits by reference to which the “London Interbank Offered Rate” or
“LIBOR” is to be determined or (b) any category of extensions of credit or
other assets which include LIBOR-based credits or assets. 

                    “Event
of Default” means an event described in Section
10.1. 

                    “Event
of Bankruptcy” shall be deemed to have occurred
with respect to a Person if either: 

	
  

 	
  

 
	
  

 	
           (a)
 a case or other proceeding shall be commenced, without the application or
 consent of such Person, in any court, seeking the liquidation,
 reorganization, debt arrangement, dissolution, winding up, or composition or
 readjustment of debts of such Person, the appointment of a trustee, receiver,
 custodian, liquidator, assignee, sequestrator or the like for such Person or
 all or substantially all of its assets, or any similar action with respect to
 such Person under any law relating to bankruptcy, insolvency, reorganization,
 winding up or composition or adjustment of debts, and such case or proceeding
 shall continue undismissed, or unstayed and in effect, for a period of 60
 consecutive days; or an order for relief in respect of such Person shall be
 entered in an involuntary case under the federal bankruptcy laws or other
 similar laws now or hereafter in effect; or 

 
	
  

 	
  

 
	
  

 	
           (b) such
 Person shall commence a voluntary case or other proceeding under any
 applicable bankruptcy, insolvency, reorganization, debt arrangement,
 dissolution or other similar law now or hereafter in effect, or shall consent
 to the appointment of or taking possession by a receiver, liquidator,
 assignee, trustee, custodian, sequestrator (or other similar official) for,
 such Person or for all or substantially all of its property, or shall make
 any general assignment for the benefit of creditors, or shall be adjudicated
 insolvent, or admit in writing its inability to, pay its debts generally as
 they become due, 

 

A-14

	
  

 	
  

 
	
  

 	
 or, if a
 corporation or similar entity, its board of directors shall vote to implement
 any of the foregoing. 

 

                    “Excess
Concentration Amount” means, as of any date, the
sum of the amounts by which the aggregate Unpaid Net Balance of Receivables of
each Obligor exceeds the Obligor Concentration Limit for such Obligor. 

                    “Excess
Rollforward Difference” means, at any time, an
amount equal the Rollforward Difference greater than 3% of the reported
aggregate Unpaid Net Balance of all Receivables. 

                    “Exchange
Act” means the Securities Exchange Act of 1934, as
amended. 

                    “Excluded
JV Receivable” means any account receivable (and
proceeds thereof) that Quest Diagnostics of Pennsylvania Inc. (“Quest Pennsylvania”)
bills in its own name and collects through its own accounts arising from
services for which revenues belong to Quest Diagnostics Venture LLC under that
certain Sharing and General Allocation Agreement dated as of November 1, 1998
by and among Quest Diagnostics Venture LLC, a Pennsylvania limited liability
company, Quest Pennsylvania and UPMC Health System Diversified Services, Inc.,
as amended or modified from time to time. 

                    “Exhibit”
refers to an exhibit to this Agreement, unless another document is specifically
referenced. 

                    “Existing
Agreement” has
the meaning set forth in the preamble to this Agreement. 

                    “Face
Value” means, when used with reference to any
Commercial Paper Notes issued by Gotham that are not Pooled Commercial Paper,
the face amount stated therein in the case of any Commercial Paper Note issued
on a discount basis, and the principal amount stated therein plus the amount of
all interest accruing on such Commercial Paper Note from the date of its issue
to its stated maturity date in the case of any Commercial Paper Note issued on
an interest-bearing basis. 

                    “Federal
Funds Rate” means, for any day, the rate per annum (rounded upwards, if necessary,
to the next higher 1/100th of 1%) equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day, provided that (i) if
the day for which such rate is to be determined is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business
Day, and (ii) if such rate is not so published for any day, the Federal Funds
Rate for such day shall be the average rate charged to the applicable Co-Agent
on such day on such transactions, as reasonably determined by such Co-Agent. 

                    “Federal
Reserve Board” means the Board of Governors of the
Federal Reserve System, or any successor thereto or to the functions thereof. 

A-15

                    “Fee
Letters” means, collectively, the Gotham Fee
Letter and the VFCC Fee Letter. 

                    “Final
Payout Date” means the date on or following the
Termination Date on which the Obligations have been paid in full. 

                    “Fitch”
means Fitch, Inc. 

                    “Foreign
Plan” means any employee benefit plan, program,
policy, arrangement or agreement maintained or contributed to by, or entered
into with, Quest Diagnostics or any of its Subsidiaries with respect to
employees employed outside the United States. 

                    “GAAP”
means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such accounting profession, which are applicable to the
circumstances as of the date of determination. 

                    “General
Intangible” shall have the meaning specified in
Article 9 of the UCC.

                    “Gotham”
has the meaning provided in the preamble of this Agreement.

                    “Gotham Agent” has
the meaning provided in the preamble of this Agreement.

                    “Gotham Allocation Limit” has
the meaning set forth in Section 1.1(b). 

                    “Gotham
Fee Letter” means that certain Gotham Fee Letter
dated as of June 11, 2008 by and among Quest Diagnostics, the Borrower, Gotham
and BTMU, as Gotham Agent and as Administrative Agent, as the same may be
amended, restated, supplemented, replaced or otherwise modified from time to
time. 

                    “Gotham
Group” has the meaning provided in the preamble of
this Agreement. 

                    “Gotham
Liquidity Agreement” means, collectively, any
liquidity agreement pursuant to which any of the Gotham Liquidity Banks provides liquidity to Gotham and any
related asset purchase agreement, as each may be amended, restated,
supplemented, replaced or otherwise modified from time to time. 

                    “Gotham
Liquidity Bank” means any Liquidity Bank that now
or hereafter enters into this Agreement and the Gotham Liquidity Agreement. 

A-16

	
  

 	
  

 
	
  

 	
           “Government
 Receivable” means: 

 
	
  

 	
  

 
	
  

 	
           (i)
 any Receivable with respect to which the United States (or an agency or
 intermediary thereof) is obligated to pay, pursuant to federal Medicare
 statutes and regulations, for services rendered to eligible beneficiaries
 thereunder, 

 
	
  

 	
  

 
	
  

 	
           (ii)
 any Receivable arising under any state’s Medicaid statutes and regulations,
 for services rendered to eligible beneficiaries thereunder, 

 
	
  

 	
  

 
	
  

 	
           (iii)
 (A) any Receivable with respect to which the United States (or an agency or
 fiscal intermediary thereof) is obligated to pay, pursuant to federal
 statutes and regulations applicable to The Civilian Health and Medical
 Program of the Uniform Services, for services rendered to eligible
 beneficiaries thereunder and not in contravention of any statute or
 regulation applicable thereto and (B) any Receivable with respect to which
 the Obligor is any Person (other than a Governmental Authority) who enters
 into a contract with the United States for the provision of health care
 services rendered to eligible beneficiaries under The Civilian Health and
 Medical Program of the Uniform Services, 

 
	
  

 	
  

 
	
  

 	
           (iv)
 any Receivable with respect to which the United States (or an agency or
 fiscal intermediary thereof) is obligated to pay, pursuant to federal
 statutes and regulations applicable to The Civilian Health and Medical
 Program of Veterans Affairs, for services rendered to eligible beneficiaries thereunder
 and not in contravention of any statute or regulation applicable thereto, 

 
	
  

 	
  

 
	
  

 	
           (v)
 any other Receivable as to which the Obligor is a Governmental Authority, 

 
	
  

 	
  

 
	
  

 	
           (vi)
 any other Receivable as to which payment is required by law to be made
 directly to the provider of the services giving rise thereto or to an account
 under such provider’s exclusive dominion and control, or 

 
	
  

 	
  

 
	
  

 	
           (vii)
 any other Receivable requiring compliance with the Federal Assignment of
 Claims Act or any similar state legislation. 

 
	
  

 	
  

 

                    “Governmental
Authority” means any nation or government, any
state or other political subdivision thereof, any central bank (or similar
monetary or regulatory authority) thereof, any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government, and any corporation or other entity owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing. 

                    “Group”
means the VFCC Group or the Gotham Group, as the
case may be. 

                    “Guarantee”
of or by any Person means any obligation,
contingent or otherwise, of such Person guaranteeing or having the economic
effect of guaranteeing any Indebtedness of any other Person (the “primary obligor”) in
any manner, whether directly or indirectly, and including any obligation of
such Person, direct or indirect, (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or to purchase (or to
advance or supply funds for the purchase of) any security for the payment of
such Indebtedness, (b) to 

A-17

purchase
property, securities or services for the purpose of assuring the owner of such
Indebtedness of the payment of such Indebtedness or (c) to maintain working
capital, equity capital or other financial statement condition or liquidity of
the primary obligor so as to enable the primary obligor to pay such
Indebtedness; provided however that the term Guarantee shall not include
endorsements for collection or deposit, in either case, in the ordinary course
of business. 

                    “HIPAA”
has the meaning set forth in Section 14.14. 

                    “Indebtedness”
of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
upon which interest charges are customarily paid, (d) all obligations of such
Person under conditional sale or other title retention agreements relating to
property or assets purchased by such Person, (e) all obligations of such Person
issued or assumed as the deferred purchase price of property or services (other
than trade payables incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such Person, whether or not the obligations
secured thereby have been assumed, but limited, if such obligations are without
recourse to such Person, to the lesser of the principal amount of such Indebtedness
or the fair market value of such property, (g) all Guarantees by such Person of
Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i)
all obligations of such Person in respect of interest rate protection
agreements, foreign currency exchange agreements or other interest or exchange
rate hedging arrangements (the amount of any such obligation to be the amount
that would be payable upon the acceleration, termination or liquidation
thereof) and (j) all obligations of such Person as an account party in respect
of letters of credit and bankers’ acceptances. The Indebtedness of any Person
shall include the Indebtedness of any partnership in which such Person is a
general partner. 

                    “Indemnified
Amounts” has the meaning set forth in Section 13.1(a).

                    “Indemnified
Party” has the meaning set forth in Section 13.1(a).

                    “Independent Director” has
the meaning set forth in Section 7.4(b). 

                    “Ineligible
Defaulted Receivable” means, on any date of
determination, the Outstanding Balance of a Defaulted Receivable multiplied by 1 minus the Recovery Rate. 

                    “Interest
Payment Date” means: 

	
  

 	
  

 
	
  

 	
           (a)
 with respect to any CP Rate Loan of a Pool Funded Conduit, each Settlement
 Date, and with respect to any CP Rate Loan of Gotham while it is not a Pool
 Funded Conduit, the last day of its CP Tranche Period, the date on which any
 such CP Rate Loan is prepaid, in whole or in part, and the Termination Date; 

 
	
  

 	
  

 
	
  

 	
           (b)
 with respect to any Eurodollar Loan, the last day of its Interest Period, the
 date on which any such Loan is prepaid, in whole or in part, and the
 Termination Date; 

 

A-18

	
  

 	
  

 
	
  

 	
           (c)
 with respect to any Alternate Base Rate Loan, each Settlement Date while such
 Loan remains outstanding, the date on which any such Loan is prepaid, in
 whole or in part, the date on which the applicable Liquidity Bank’s Scheduled
 Termination Date occurs, and the Termination Date; 

 
	
  

 	
  

 
	
  

 	
           (d)
 with respect to any Loan while the Default Rate is applicable thereto, upon
 demand or, in the absence of any such demand, each Settlement Date while such
 Loan remains outstanding, the date on which any such Loan is prepaid, in
 whole or in part, the Termination Date, and if the applicable Loan was funded
 by a Liquidity Bank, the date on which the applicable Liquidity Bank’s
 Scheduled Termination Date occurs; and 

 
	
  

 	
  

 
	
  

 	
           (e)
 with respect to all Loans of the VFCC Group, the VFCC Group Termination Date.
 

 

                    “Interest
Period” means, with respect to a Eurodollar Loan,
a period not to exceed three calendar months commencing on a Business Day
selected by the Borrower (or the Servicer on the Borrower’s behalf) pursuant to
this Agreement and agreed to by the applicable Co-Agent. Such Interest Period
shall end on the day which corresponds numerically to such date one, two, or
three calendar months thereafter, provided, however, that (i) if there is no
such numerically corresponding day in such next, second or third succeeding
calendar month, such Interest Period shall end on the last Business Day of such
next, second or third succeeding calendar month, and (ii) if an Interest Period
would otherwise end on a day which is not a Business Day, such Interest Period
shall end on the next succeeding Business Day unless said next succeeding
Business Day falls in a new calendar month, then such Interest Period shall end
on the immediately preceding Business Day. 

                    “Interest
Rate” means a Eurodollar Rate (Reserve Adjusted),
a CP Rate, an Alternate Base Rate or the Default Rate. 

                    “Invoice”
means, with respect to any Receivable, any paper
or electronic bill, statement or invoice for services rendered by an Originator
to an Obligor. 

                    “Joinder
Agreement” has the meaning set forth in the Sale
Agreement. 

                    “LabOne
Receivable,” means a Receivable that arises out of
a sale of goods or services by any of LabOne, Inc., ExamOne World Wide, Inc.,
Central Plains Laboratories, LLC, LabOne of Ohio, Inc., and Systematic Business
Services, Inc. 

                    “Laws”
means, collectively, all common law and all international, foreign, federal,
state and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents, including without limitation
the interpretation thereof by any Governmental Authority charged with the
enforcement thereof. 

                    “Lenders”
means, collectively, VFCC, the VFCC Liquidity
Banks, Gotham, the Gotham Liquidity Banks, and their respective successors and
permitted assigns. 

                    “Lien”
means any security interest, lien, encumbrance,
pledge, assignment, title retention, similar claim, right or interest. 

A-19

                    “Liquidity
Agreements” means, collectively, the Gotham
Liquidity Agreement and the VFCC Liquidity Agreement. 

                    “Liquidity
Bank” means (a) with respect to VFCC, Wachovia or
any Eligible Assignee of Wachovia’s Commitment and Liquidity Commitment, and
(b) with respect to Gotham, BTMU or any Eligible Assignee of BTMU’s Commitment
and Liquidity Commitment, in each of the foregoing cases, to which the Borrower
has consented if required under Section 12.1. A Liquidity Bank will become a “Lender” hereunder at
such time as it makes any Liquidity Funding. 

                    “Liquidity
Commitment” means, with respect to each Liquidity
Bank, its commitment to make Liquidity Fundings pursuant to the Liquidity
Agreement to which it is a party. 

                    “Liquidity
Funding” means (a) a purchase made by any
Liquidity Bank pursuant to its Liquidity Commitment of all or any portion of,
or any undivided interest in, a Loan of its applicable Conduit, or (b) any Loan
made by the applicable Liquidity Banks in lieu of a Conduit pursuant to Section
1.1. 

                    “Loan”
means any loan made by a Lender to the Borrower pursuant to this Agreement.
Each Loan shall either be a CP Rate Loan, an Alternate Base Rate Loan or a
Eurodollar Rate Loan, selected in accordance with the terms of this Agreement. 

                    “Loan
Parties” means, collectively, (i) the Borrower,
and (ii) Quest Diagnostics so long as it is acting as the Servicer (or as a
sub-servicer) hereunder. 

                    “Lockbox”
means any post office box maintained by an Originator on behalf of the Borrower
to which payments on certain Receivables are mailed. 

                    “Loss
Reserve” means, for any month, the product
(expressed as a percentage) of (i) 2.0, times (ii) the highest three-month
rolling average Default Ratio during the 12 months ending on the immediately
preceding Cut-Off Date, times (iii) the Default Horizon Ratio as of the
immediately preceding Cut-Off Date, times (iv) one minus the Recovery Rate. 

                    “Material
Acquisition” means that any existing Originator
acquires the Unpaid Net Balance of Receivables of one or more other Persons who
are not existing Eligible Originators, whether by purchase, merger,
consolidation or otherwise, if (i) the aggregate Unpaid Net Balance of
receivables so acquired from any one such Person exceeds 10% of the Allocation
Limit in effect on the date of acquisition, merger or consolidation, or (ii)
the aggregate Unpaid Net Balance of receivables so acquired from all Persons in
any calendar year exceeds (or from all such Persons in any calendar year)
exceeds 10% of the weighted average Allocation Limit in effect during such
calendar year. 

                    “Material
Adverse Effect” means an event, circumstance, occurrence,
or condition which has caused as of any date of determination any of (a) a
material adverse effect, or any condition or event that has resulted in a
material adverse effect, on the business, operations, financial condition or
assets of (i) the Originators taken as a whole (after taking into account
indemnification obligations by third parties that are Solvent to the extent
that such third 

A-20

party has not
disputed (after notice of claim in accordance with the applicable agreement
therefor) liability to make such indemnification payment), (ii) the Servicer,
or (iii) the Borrower, (b) a material adverse effect on the ability of the
Originators, the Servicer or the Borrower to perform when and as due any of
their material obligations under any Transaction Document to which they are
parties, (c) a material adverse effect on the legality, binding effect or
enforceability of any Transaction Document or any of the material rights and
remedies of any of the Agents or Lenders thereunder or the legality, priority,
or enforceability of the Lien on a material portion of the Collateral, or (d) a
material adverse effect upon the validity, enforceability or collectibility of
a material portion of the Receivables. 

                    “Material
Proposed Addition” means a Person whom any Loan
Party proposes to add as a “seller” under the Sale Agreement if either (i) the
aggregate Unpaid Net Balance of such Person’s receivables (on the proposal
date) exceeds 10% of the weighted average Allocation Limit in effect on the
proposal date, or (ii) the Unpaid Net Balance of such Person’s receivables (on
such proposal date), when aggregated with the receivables of all other Persons
added as “sellers” under the Sale Agreement in the same calendar year (measured
on the respective dates such other Persons became “sellers” under the Sale
Agreement) exceeds 10% of the weighted average Allocation Limit in effect
during such calendar year. 

                    “Missing
Information Percentage” means the percentage equal
to the ratio of (a) the total number of incomplete requisitions received in any
month by the Originators, to (b) the total number of requisitions resulted in
such month by the Originators. For this purpose, a requisition (whether in
paper or electronic format) is incomplete if at the time that the test results
of a specimen are reported, the Originator has not been provided sufficient
information (whether from the requisition or otherwise) to bill the appropriate
Person for the test or other service being performed. As used herein, a
“resulted” requisition is one which is processed and on which its results have
been reported. 

                    “Missing
Information Trigger Event” means that the most
recent three-calendar month rolling average Missing Information Percentage at
any Cut-Off Date exceeds 7.00% (it being understood that if a private carrier
or government action imposes any change expected to have an adverse impact on
the information gathering process of the Originators, this percentage will not
be utilized in the calculation of a Missing Information Trigger Event for the 3
Settlement Periods immediately following such change). 

                    “Monthly
Report” means a report in the form of Exhibit
3.1(a). 

                    “Monthly
Reporting Date” means the 20th day of
each calendar month; provided,
however, that if any such day is not a Business Day, then the
Monthly Reporting Date shall occur on the next succeeding Business Day. 

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

                    “Multiemployer
Plan” means a multiemployer plan within the
meaning of Section 4001(a)(3) of ERISA (a) to which any ERISA Entity is then
making or accruing an obligation to make contributions, (b) to which any ERISA
Entity has within the preceding five 

A-21

plan years
made contributions, including any Person which ceased to be an ERISA Entity
during such five year period, or (c) with respect to which any Loan Party could
incur liability. 

                    “Net
Pool Balance” means, at any time, an amount equal
to (i) Net Receivables, minus (ii) Specified Government Ineligibles. 

                    “Net
Receivables” means, at any time, an amount equal
to the reported aggregate Unpaid Net Balance of all Receivables at such time,
minus (i) the aggregate Unpaid Net Balance of all Receivables that are not
Eligible Receivables at such time, minus (ii) Receivables (other than those
covered by any other clause of this definition) that are not yet Defaulted
Receivables which are owing from any Top 10 Obligor as to which more than 50%of the aggregate Unpaid Net Balance of all
Receivables owing from such Top 10 Obligor are Defaulted Receivables, minus
(iii) the Excess Concentration Amount at such time, minus (iv) 2% of the
aggregate Unpaid Net Balance of all Receivables owing from Obligors who are not
Top 10 Obligors, minus (v) the Excess Rollforward Difference. 

                    “Net
Revenues” means, for any calendar month of
determination, the gross amount of Receivables generated by the Originators
from Clinical Laboratory Services during such calendar month less the
associated Contractual Disallowances but before accruals for and write-offs of
bad debts. 

                    “Non-Approving
Group” means any Group containing a Non-Approving
Lender. 

                    “Non-Approving
Lender” means any Lender that does not approve (a)
a requested waiver to this Agreement or the Credit Agreement, or (b) a
requested amendment to this Agreement or the Credit Agreement. 

                    “Obligations”
means all unpaid principal of and accrued and
unpaid interest on the Loans, all accrued and unpaid fees and all expenses,
reimbursements, indemnities and other obligations of the Borrower to the
Lenders (or any Lender), any of the Agents or any Indemnified Party arising
under the Transaction Documents. 

                    “Obligor”
means a Person obligated to make payments with
respect to a Receivable, including any guarantor thereof. 

                    “Obligor
Concentration Limit” means, at any time, in
relation to the aggregate Unpaid Net Balance of Receivables owed by any single
Obligor and its Affiliated Obligors (if any), the applicable concentration
limit shall (unless each Co-Agent from time to time upon the Borrower’s request
agrees to a higher percentage of Eligible Receivables for a particular Obligor
and its Affiliates, which agreement may be conditioned upon an increase in the
percentage set forth in clause (A)(i) of the definition of “Required Reserve” or
upon satisfaction of the Rating Agency Condition) be determined as follows for
Obligors who have short term unsecured debt ratings currently assigned to them
by S&P and Moody’s, the applicable concentration limit shall be determined
according to the following table; provided, however, that if such Obligor has a
split rating, the applicable rating will be the lower of the two: 

A-22

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 S&P Rating

 	
  

 	
 Moody’s Rating

 	
  

 	
 Allowable % of Eligible 

 Receivables

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
   A-1+

 	
  

 	
 P-1

 	
  

 	
 10%

 
	
 A-1

 	
  

 	
 P-1

 	
  

 	
   8%

 
	
 A-2

 	
  

 	
 P-2

 	
  

 	
   6%

 
	
 A-3

 	
  

 	
 P-3

 	
  

 	
   3%

 
	
 Below A-3 or Not Rated

 	
  

 	
 Below P-3 or Not Rated

 	
  

 	
   2%

 

                    “Organic
Document” means,
relative to any Person, its certificate of incorporation, its by-laws, its
partnership agreement, its memorandum and articles of association, its limited
liability company agreement and/or operating agreement, share designations or
similar organization documents and all shareholder agreements, voting trusts
and similar arrangements applicable to any of its authorized Equity Interests. 

                    “Originator” means Quest Diagnostics or any its direct or
indirect wholly-owned Subsidiaries who is or becomes a “seller” under the Sale
Agreement. 

                    “Payment
Intangible” shall
have the meaning specified in Article 9 of the UCC. 

                    “PBGC”
means the Pension
Benefit Guaranty Corporation, or any successor thereto. 

                    “Pension
Plan” means an
employee pension benefit plan (other than a Multiemployer Plan) which is
covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Code or Section 302 of ERISA and is maintained or
contributed to by any ERISA Entity or with respect to which any Loan Party
could incur liability. 

                    “Percentage”
means, for each
Group on any date of determination, the ratio which the sum the outstanding
principal balance of such Group’s Loans bears to the aggregate outstanding
principal balance of all Advances. 

                    “Permitted
Investments”
means, on any date, any one or more of the following types of investments provided that they
mature on or prior to the next Settlement Date: 

	
  

 	
  

 
	
  

 	
           (a)
 marketable obligations of the United States of America, the full and timely
 payment of which are backed by the full faith and credit of the United States
 of America and which have a maturity of not more than 270 days from the date
 of acquisition; 

 
	
  

 	
  

 
	
  

 	
           (b)
 marketable obligations, the full and timely payment of which are directly and
 fully guaranteed by the full faith and credit of the United States of America
 and which have a maturity of not more than 270 days from the date of acquisition;
 

 
	
  

 	
  

 
	
  

 	
           (c)
 bankers’ acceptances and certificates of deposit and other interest-bearing
 obligations (in each case having a maturity of not more than 270 days from
 the date of acquisition) denominated in dollars and issued by any bank with
 capital, surplus and undivided profits aggregating at least $50,000,000, the
 short-term obligations of which are rated at least A-1 by S&P and P-1 by
 Moody’s; 

 

A-23

	
  

 	
  

 
	
  

 	
           (d)
 repurchase obligations with a term of not more than ten days for underlying
 securities of the types described in clauses (a), (b) and (c) above entered
 into with any bank of the type described in clause (c) above; 

 
	
  

 	
  

 
	
  

 	
           (e)
 commercial paper rated at least A-1 by S&P and P-1 by Moody’s; and, 

 
	
  

 	
  

 
	
  

 	
           (f)
 demand deposits, time deposits or certificates of deposit (having original
 maturities of no more than 365 days) of depository institutions or trust
 companies incorporated under the laws of the United States of America or any
 state thereof (or domestic branches of any foreign bank) and subject to
 supervision and examination by federal or state banking or depository
 institution authorities; provided,
 however, that at the time such investment, or the commitment
 to make such investment, is entered into, the short-term debt rating of such
 depository institution or trust company shall be at least A-1 by S&P and
 P-1 by Moody’s. 

 

                    “Person”
means any natural
person, corporation, firm, joint venture, partnership, limited liability
company, association, enterprise, trust or other entity or organization, or any
government or political subdivision or any agency, department or
instrumentality thereof. 

                    “PHI”
has the meaning
set forth in Section 14.14. 

                    “Pooled
Commercial Paper”
means for each of the Pool Funded Conduits the Commercial Paper Notes of such
Pool Funded Conduit subject to any particular pooling arrangement by such
Conduit, but excluding Commercial Paper Notes issued by the Pool Funded
Conduits for a tenor and in an amount specifically requested by any Person in
connection with any agreement effected by such Pool Funded Conduit. 

                    
“Pool Funded Conduits”
means VFCC and, during any time as to which it has notified the Loan Parties
that it will be pool funding its Loans, Gotham. 

                    “Prepayment
Notice” has the
meaning set forth in Section 1.5(a). 

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

                    “Principal
Amount” means the
actual net cash proceeds received by a Conduit upon issuance by it of a
Commercial Paper Note. 

                    “Privacy
Regulations” has
the meaning set forth in Section 14.14. 

                    “Proceedings”
means,
collectively, lawsuits, arbitrations, mediations and Congressional or
regulatory hearings. 

A-24

                    “Program
Information” has
the meaning set forth in Section 14.8. 

                    “Property”
of a Person means
any right, title or interest in or to property or assets of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible
and including Equity Interests or other ownership interests of any Person. 

                    “QBS”
means the Quest
Billing System. 

                    “Qualifying
Liquidity Bank”
means a commercial bank having a combined capital and surplus of at least
$250,000,000 with a rating of its (or its parent holding company’s) short-term
securities equal to or higher than (i) A-1 by S&P, (ii) P-1 by Moody’s and
(if applicable) (iii) F1 by Fitch. 

                    “Quest
Diagnostics” has
the meaning set forth in the preamble of this Agreement. 

                    “Ratable
Share” means with
respect to any Liquidity Bank, the ratio which its Commitment bears to the
Aggregate Commitment. 

                    “Rating
Agency Condition”
means that, if required under a Conduit’s program documents, each such Conduit
has received written notice from S&P, Moody’s and, at any time while Fitch
is rating such Conduit’s Commercial Paper, Fitch, that an amendment, a change
or a waiver will not result in a withdrawal or downgrade of the then current
ratings on such Conduit’s Commercial Paper Notes. 

                    “Receivable” means any Account or Payment Intangible
arising from the sale of Clinical Laboratory Services by an Originator,
including, without limitation, the right to payment of any interest or finance
charges and other amounts with respect thereto, which is sold or contributed to
the Borrower under the Sale Agreement; provided, however, that the term “Receivable” shall
not include (a) any Excluded JV Receivable, or (b) any Government Receivable
except a Specified Government Receivable. Rights to payment arising from any
one transaction, including, without limitation, rights to payment represented
by an individual invoice, shall constitute a Receivable separate from a
Receivable consisting of the rights to payment arising from any other
transaction. 

                    “Records” means, collectively, all Invoices and all
other documents, books, records and other information (including, without
limitation, computer programs, tapes, disks, punch cards, data processing
software and related property and rights) evidencing, governing the payment
terms or payment status of, or identifying the Obligor on, any Receivable or
Related Asset, other than (i) any Contract related thereto, and (ii) any
confidential patient information including, without limitation, test results. 

                    “Recovery
Rate” means at
any time 50%. 

                    “Regulation
D” means
Regulation D of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor thereto or other regulation or
official interpretation of said Board of Governors relating to reserve
requirements applicable to member banks of the Federal Reserve System. 

A-25

                    “Regulation
T, U or X” means
Regulation T, U or X of the Board of Governors of the Federal Reserve System as
from time to time in effect and any successor or other regulation or official
interpretation of said Board of Governors relating to the extension of credit
for the purpose of purchasing or carrying margin stocks. 

                    “Regulatory
Change” means any
change after the date of this Agreement in United States (federal, state or
municipal) or foreign laws, regulations (including Regulation D) or accounting
principles or the adoption or making after such date of any interpretations,
directives or requests applying to a class of banks (including the Liquidity
Banks) of or under any United States (federal, state or municipal) or foreign
laws, regulations (whether or not having the force of law) or accounting
principles by any court, governmental or monetary authority, or accounting
board or authority (whether or not part of government) charged with the
establishment, interpretation or administration thereof. For the avoidance of
doubt, any interpretation of Accounting Research Bulletin No. 51 by the
Financial Accounting Standards Board shall constitute a Regulatory Change. 

                    “Related
Assets” means all
of the Borrower’s right, title and interest in and to the following: (a) the
Related Security, (b) the Sale Agreement, (c) the Collateral Account (if any)
and the balances and instruments from time to time therein, (d) the Lockboxes
and Collection Accounts, all balances and instruments from time to time
therein, and any and all Collection Account Agreements with respect thereto
that may exist in favor of the Borrower, (e) payments due in respect of the
Demand Advances, and (f) all proceeds and insurance proceeds of any of the
foregoing. 

                    “Related
Security” means,
with respect to each Receivable, all right, title and interest in and to the
following: 

                    (a)
(i) all Collections; (ii) all Records; (iii) all Collection Accounts and all
cash, balances and instruments therein from time to time therein; (iv) the
goods (including returned or repossessed goods), if any, the sale of which by a
Seller gave rise to such Receivable; (v) all supporting obligations; and (vi)
all liens and security interests, if any, securing payment of such Receivable,
whether pursuant to the Contract related to such Receivable or otherwise; and 

                    (b)
all proceeds and insurance proceeds of the foregoing. 

                    “Reportable
Event” means any
of the events set forth in Section 4043(c) of ERISA or the regulations
thereunder, other than any such event for which the 30-day notice requirement
under ERISA has been waived in regulations issued by the PBGC. 

                    “Reporting
Date” means a
Weekly Reporting Date or a Monthly Reporting Date. 

                    “Required
Amounts” has the
meaning set forth in Section 3.2. 

                    “Required
Day” means, with
respect to any event, the Business Day preceding such event by the Required
Notice Period. 

                    “Required
Notice Period”
means the number of days required notice set forth below applicable to the
aggregate principal reduction indicated below: 

A-26

	
  

 	
  

 	
  

 
	
 AGGREGATE REDUCTION

 	
  

 	
 REQUIRED NOTICE PERIOD 

 
	

 

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
 <
 25% of the Aggregate

 	
  

 	
 2
 Business Days

 
	
 Commitment

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 25%-50%
 of the Aggregate

 	
  

 	
 5
 Business Days

 
	
 Commitment

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 >
 50% of Aggregate

 	
  

 	
 10
 Business Days

 
	
 Commitment

 	
  

 	
  

 

                    “Requirement
of Law” means as
to any Person, the Organic Documents of such Person, and any Law or
determination of an arbitrator or any Governmental Authority, in each case
applicable to or binding upon such Person or any of its Property or to which
such Person or any of its Property is subject. 

                    “Required
Reserve” means,
on any day during a month, an amount equal to the product of (i) the greater of
(a) the Required Reserve Factor Floor and (b)
the sum of the Loss Reserve, the Yield Reserve, the Dilution Reserve, the Ad
Hoc Reserve and the Servicing Reserve, times (ii) the Net Pool Balance as of
the Cut-Off Date immediately preceding such month. 

                    “Required
Reserve Factor Floor” means, for any month, the sum (expressed as a percentage) of (i) 11%plus (ii) the product of the Adjusted
Dilution Ratio and the Dilution Horizon Ratio, in each case, as of the
immediately preceding Cut-Off Date. 

                    
“Review” has the
meaning set forth in Section 7.1(c). 

                    “Revolving
Period” means, as
to each Group, the period from and after the date of this Agreement to but
excluding the earlier to occur of (a) the Termination Date, and (b) the last
Scheduled Termination Date of any Liquidity Bank in such Group. 

                    “Rollforward
Difference”
means, at any time, an amount equal to absolute value of the reported aggregate
Unpaid Net Balance of all Receivables minus the calculated Unpaid Net Balance
of all Receivables. 

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

                    “Sale
Agreement” means
the Second Amended and Restated Receivables Sale Agreement dated as of April
20, 2004 between each of the Originators, as a seller and/or contributor, and
the Borrower, as purchaser and contributee, as it may be amended, supplemented
or otherwise modified in accordance with Section 7.3(f). 

                    “Schedule” refers to a specific schedule to this
Agreement, unless another document is specifically referenced. 

A-27

                    “Scheduled
Termination Date” means (a) as to each VFCC
Liquidity Bank, the VFCC Group Termination Date, and (b) as to each other
Liquidity Bank, the earlier to occur of June 10, 2009 and the date on which its
Liquidity Commitment(s) terminate(s) in accordance with the Liquidity Agreement
to which it is a party.

                    “SEC”
means the Securities and Exchange Commission. 

                    “Section”
means a numbered section of this Agreement, unless
another document is specifically referenced. 

                    “Secured
Parties” means the Indemnified Parties. 

                    “Security
Regulations” has the meaning set forth in Section 14.14.

                    “Servicer” has
the meaning set forth in the preamble of this Agreement.

                    “Servicer Transfer Event”
means the occurrence of any Event of Default.

                    “Servicer’s Fee” accrued for any day in
a Settlement Period means: 

	
  

 	
  

 
	
  

 	
           (a)
 an amount equal to (x) 5.0% per annum
 (or, at any time while Quest Diagnostics is the Servicer, such lesser
 percentage as may be agreed between the Borrower and the Servicer on an arms’
 length basis based on then prevailing market terms for similar services),
 times (y) the reported aggregate Unpaid Net Balance of the Receivables at the
 close of business on the first day of such Settlement Period, times (z)
 1/360; or 

 
	
  

 	
  

 
	
  

 	
           (b)
 on and after the Servicer’s reasonable request made at any time when Quest
 Diagnostics shall no longer be the Servicer, an alternative amount specified
 by the Servicer not exceeding (x) 110% of the Servicer’s costs and expenses
 of performing its obligations under the Agreement during the Settlement
 Period when such day occurs, divided by (y) the number of days in such
 Settlement Period. 

 

                    “Servicing
Reserve” means the product of 3.0% and a fraction,
the numerator of which is the highest Days Sales Outstanding calculated for
each of the most recent 12 calendar months and the denominator of which is 360.

                    “Settlement
Date” means (a) the second Business Day after each
Monthly Reporting Date, (b) such other Business Days as the Co-Agents may
specify by written notice to the Lenders, the Borrower and the Servicer, and
(c) the Termination Date. 

                    “Settlement
Period” means each period from and including a
Cut-Off Date to the earlier to occur of the next Cut-Off Date or the Final
Payout Date. 

                    “Solvent”
and “Solvency” means, for any Person on a
particular date, that on such date (a) the fair value of the Property of such
Person is greater than the total amount of liabilities, including, without
limitation, contingent liabilities, of such Person, (b) the present fair
salable value of the assets of such Person is not less than the amount that
will be required to pay 

A-28

the probable
liability of such Person on its debts as they become absolute and matured, (c)
such Person does not intend to, and does not believe that it will, incur debts
and liabilities beyond such Person’s ability to pay such debts and liabilities
as they mature and (d) such Person is not engaged in a business or a
transaction, and is not about to engage in a business or a transaction, for
which such Person’s Property would constitute an unreasonably small capital. 

                    “Specified
Government Ineligibles” means, on any date of
determination, 5% times Client-Billed Receivables for the Reserve Computation
as of the last day of the calendar month then most recently ended. 

                    “Specified
Government Receivable” means a Government
Receivable as to which the Obligor is a state or local Governmental Authority
(other than a Receivable arising under any state’s Medicaid statutes and
regulations for services rendered to eligible beneficiaries thereunder). 

                    “Subordinated
Loan” has the meaning set forth in the Sale
Agreement. 

                    “Subordinated
Note” has the meaning set forth in the Sale
Agreement. 

                    “Subsidiary”
means, with respect to any Person, any
corporation, partnership or other entity of which at least a majority of the
securities or other ownership interests having by the terms thereof ordinary
voting power to elect a majority of the board of directors or other persons
performing similar functions of such corporation, partnership or other entity
(irrespective of whether or not at the time securities or other ownership
interests of any other class or classes of such corporation, partnership or
other entity shall have or might have voting power by reason of the happening
of any contingency) is at the time directly or indirectly owned or controlled
by such Person and/or one or more Subsidiaries of such Person. 

                    “Successor
Notice” has the meaning set forth in Section
8.1(b). 

                    “Taxes”
means any and all taxes, imposts, duties, charges,
fees, levies or other similar charges or assessments, including income, gross
receipts, excise, real or personal property, sales, withholding, social
security, retirement, unemployment, occupation, use, service, license, net
worth, payroll, franchise, and transfer and recording, imposed by the Internal
Revenue Service or any taxing authority (whether domestic or foreign, including
any federal, state, U.S. possession, county, local or foreign government or any
subdivision or taxing agency thereof), whether computed on a separate,
consolidated, unitary, combined or any other basis, including interest, fines,
penalties or additions to tax attributable to or imposed on or with respect to
any such taxes, charges, fees, levies or other assessments. 

                    “Termination
Date” means, as to each Group, the earliest to
occur of: (a) the last Scheduled Termination Date of any Liquidity Bank in that
Group; (b) the date designated by the Borrower as the “Termination Date” on not
less than fifteen (15) Business Days’ notice to the Co-Agents, provided that on such
date the Obligations have been paid in full; (c) the date specified in Section
10.2(a) or (b) (including, without limitation, any such specified date following
either Co-Agent’s failure to approve a requested waiver hereunder); (d) the 90th
day after the Co-Agents receive a copy of any proposed amendment (but not
waiver) to the Credit Agreement which does not become an Approved Amendment
within 30 days after such date of 

A-29

receipt; and
(e) the 90th day after any requested amendment to this Agreement (as
opposed to a requested waiver hereunder) is not approved by each Co-Agent
within 30 days after receipt of such request (unless such proposed amendment is
approved by at least one Co-Agent and the Obligations owing the dissenting
Co-Agent(s)’s Group(s) are paid in full on or within 60 days after such 30th
day). 

                    “Top
10 Obligor” means any of the following and its
Affiliates considered as if it and its Affiliates were one and the same entity:
(1) United Healthcare, (2) Aetna / US Healthcare / Prudential, (3) Cigna, (4)
Independence Blue Cross / Amerihealth, (5) Private Health Care Systems (PHCS),
(6) Beech Street, (7) Texas BCBS, (8) Anthem Health, (9) Empire BCBS, and (10)
BCBS Mass. 

                    “Transaction
Documents” means this Agreement, the Collection
Account Agreements, the Sale Agreement, the Fee Letters, the Subordinated Notes
and the other documents to be executed and delivered in connection herewith or
therewith. 

                    “UCC”
means the Uniform Commercial Code as from time to time in effect in the
applicable jurisdiction or jurisdictions. 

                    “Unmatured
Default” means an event which but for the lapse of
time or the giving of notice, or both, would constitute an Event of Default. 

                    “Unpaid
Net Balance” of any Receivable means at any time
(i) the unpaid amount thereof, but excluding all late payment charges,
delinquency charges and extension or collection fees, minus (ii) Contractual
Disallowances. 

                    “Unused
Fee” has the meaning set forth in the Fee Letters.

                    “Usage Fee”
has the meaning set forth in each of the Fee Letters.

                    “VFCC” has the
meaning provided in the preamble of this Agreement.

                    “VFCC Agent” has the
meaning provided in the preamble of this Agreement.

                    “VFCC Allocation Limit”
has the meaning set forth in Section 1.1(a). 

                    “VFCC
Fee Letter” means that certain Second Amended and
Restated VFCC Fee Letter dated as of May 23, 2008 by and among Quest
Diagnostics, the Borrower, VFCC and the VFCC Agent. 

                    “VFCC
Group” has the meaning provided in the preamble of
this Agreement. 

                    “VFCC
Group Termination Date” means December 13, 2008. 

                    “VFCC
Liquidity Agreement” means the Fourth Amended and
Restated Liquidity
Asset Purchase Agreement dated as of April 20, 2004 among VFCC, the VFCC Agent,
and the Liquidity Banks from time to time party thereto, as the same may be
amended, restated, supplemented, replaced or otherwise modified from time to
time. 

A-30

                    “VFCC
Liquidity Bank” means any Liquidity Bank that
enters into this Agreement and the VFCC Liquidity Agreement. 

                    “Wachovia”
has the meaning set forth in the preamble of this Agreement.

                    “Wachovia
Roles” has the meaning set forth in Section 11.10(a).

                    “Weekly Report” means
a report in the form of Exhibit 3.1(b). 

                    “Weekly
Reporting Date” means Monday of any week in which
Weekly Reports are required to be delivered hereunder; provided, however,
that if any such Monday is not a Business Day, then the Weekly Reporting Date
shall be the next succeeding Business Day. 

                    “Yield
Reserve” means, for any month, the product
(expressed as a percentage) of (i) 1.5 times (ii) the Alternate Base Rate as of
the immediately preceding Cut-Off Date times
(iii) a fraction the numerator of which is the highest Days Sales Outstanding
for the most recent 12 months and the denominator of which is 360. 

                    The
foregoing definitions shall be equally applicable to both the singular and
plural forms of the defined terms. 

                    B.
Other Terms. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP. All terms used in
Article 9 of the UCC in the State of New York, and not specifically defined
herein, are used herein as defined in such Article 9. 

                    C.
Computation of Time Periods. Unless otherwise stated
in this Agreement, in the computation of a period of time from a specified date
to a later specified date, the word “from” means “from and including” and the
words “to” and “until” each mean “to but excluding”. 

A-31

EXHIBIT A 

[INTENTIONALLY DELETED]

EXHIBIT 2.1 

FORM OF BORROWING REQUEST

Quest Diagnostics Receivables Inc.

BORROWING REQUEST 

For Borrowing On __________________

Wachovia Bank,
National Association, as VFCC Agent 

171 17th Street, N.W., 4th Floor 

Mail-stop GA4524 

Atlanta, GA 30363 

Attention: Elizabeth Wagner, Fax No. (404) 214-5481 

and 

The Bank of
Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Gotham Agent 

1251 Avenue of the Americas 

New York, New York 10020-1104 USA 

Attention: Securitization Group, Fax No. (212) 782-6998 

 

Ladies and
Gentlemen: 

                    Reference
is made to the Fourth Amended and Restated Credit and Security Agreement dated
as of June 11, 2008 (as amended, supplemented or otherwise modified from time
to time, the “Credit
Agreement”) among Quest Diagnostics Receivables Inc. (the “Borrower”), Quest
Diagnostics Incorporated, as initial Servicer, Variable Funding Capital Company
LLC, Gotham Funding Corporation, Wachovia Bank National Association,
individually and as a Co-Agent, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., New
York Branch, individually, as a Co-Agent and as Administrative Agent.
Capitalized terms defined in the Credit Agreement are used herein with the same
meanings. 

                    1.
The [Servicer, on behalf of the] Borrower hereby certifies, represents and
warrants to the Agents and the Lenders that on and as of the Borrowing Date (as
hereinafter defined): 

                    (a)
all applicable conditions precedent set forth in Section 5 of the Credit
Agreement have been satisfied; 

                    (b)
each of its representations and warranties contained in Section 6 of the Credit
Agreement will be true and correct, in all material respects, as if made on and
as of the Borrowing Date; 

                    (c)
no event will have occurred and is continuing, or would result from the
requested Purchase, that constitutes an Event of Default or Unmatured Default; 

                    (d)
the Termination Date has not occurred; and 

                    (e)
after giving effect to the Loans comprising the Advance requested below, VFCC’s
and the VFCC Liquidity Banks’ Loans at any one time outstanding will not exceed
the VFCC Allocation Limit and Gotham’s and the Gotham Liquidity Banks’ Loans at
any one time outstanding will not exceed the Gotham Allocation Limit. 

                    2.
The [Servicer, on behalf of the] Borrower hereby requests that the
Conduits (or their respective Liquidity Banks) make an Advance on ___________,
_____ (the “Borrowing
Date”) as follows: 

	
  

 	
  

 	
  

 
	
                     (a)
 Aggregate Amount of Advance: 

 	
 $_____________

 
	
  

 	
  

 	
  

 
	
  

 	
 (i) VFCC
 Group’s Percentage of Advance:

 	
 $___________
 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii) Gotham
 Group’s Percentage of Advance:

 	
 $___________
 

 

                    (b)
Interest Rate Requested: CP Rate (unless you advise the Borrower that a
Liquidity Funding will be made for either Conduit, in which case the [Servicer on behalf of the] Borrower requests that the applicable
Conduit’s Liquidity Banks make an Alternate Base Rate Loan that converts into
Eurodollar Loan with an Interest Period approximately equal to the CP Tranche
Period specified below on the third Business Day after the Borrowing Date). 

                    (c)
CP Tranche Period Requested:________ days 

                    3.
Please disburse the proceeds of the Loans as follows: 

                        (i)
VFCC Group: [Apply $________
to payment of principal and interest of existing Loans due on the Borrowing
Date]. [Apply $______ to payment of fees due on the Borrowing Date]. [Wire
transfer $________ to account no. ________ at ___________ Bank, in [city, state], ABA No. __________, Reference: ________]; 

                        (ii)
Gotham Group: [Apply
$________ to payment of principal and interest of existing Loans due on the
Borrowing Date]. [Apply $______ to payment of fees due on
the Borrowing Date]. [Wire transfer $________ to account no.
________ at ___________ Bank, in [city,
state], ABA No. __________,
Reference: ________]; and 

                    IN
WITNESS WHEREOF, the [Servicer, on behalf of the]
Borrower has caused this Borrowing Request to be executed and delivered as of
this ____ day of ___________, _____. 

	
  

 	
  

 
	
  

 	
  [_______________________, as Servicer, on
 behalf of:] QUEST 

 
	
  

 	
 DIAGNOSTICS
 RECEIVABLES INC., as Borrower 

 
	
  

 	
  

 
	
  

 	
 By: 

 
	
  

 	
 Name: 

 
	
  

 	
 Title: 

 

EXHIBIT 3.1(A) 

FORM OF MONTHLY REPORT

[Attached]

Quest Diagnostics Receivables Inc.

For the Month Ended: 

[MM/DD/YYYY] 

(Page 1)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Borrowing Availability

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 I.

 	
 Portfolio Information

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1. 

 	
 Beginning of Month Balance: (Net
 of Disallowance A/R Outstanding)

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2. 

 	
 Gross Sales (Net of
 Disallowance):

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3. 

 	
 Add:  Patient Refunds

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4. 

 	
 Deduct:

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 a. Total Collections:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 b. Total Bad Debt

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 5. 

 	
 a. 

 	
 Calculated Net Ending A/R
 Balance [(1) + (2) + (3) - (4 a,b,c)]:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 Reported Net Ending A/R Balance

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
 Difference (If any)

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 6. 

 	
 Reported Net Ending A/R

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7. 

 	
 Deduct:

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 a. Recovery Adjusted Total
 Defaults

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 b. Net Foreign Balance

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 c. Total Ineligibles

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8. 

 	
 Eligible Receivables [5b - 7d]:

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9. 

 	
 Deduct:

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Excess Concentration:

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Excess Rollforward Difference
 (>3% threshhold)

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10. 

 	
 Cross Age Computation

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Unpaid Net Balance of
 Receivables for Top 10 Obligors

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Remaining Net Balance of
 Receivables Less Top 10 Obligors

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Deduct: Top 10 Obligors’
 Cross-Aged (50%) Receivables

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Deduct: 2% Reserve for the Non
 Top 10 Obligors Unpaid Net Balance of all Receivables

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11. 

 	
 Net Receivables

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12. 

 	
 Government Computation

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 a.

 	
 Estimated Unpaid Net Balance of
 Client - Billed Receivables

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 b.

 	
 Client-Billed Receivables % for
 the Month [(12a) / (5b)]:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 c.

 	
 Estimated Client-Billed
 Receivables for Reserve Computation [(11) * (12b)]:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 d.

 	
 Specified Government Ineligibles [5%]:

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 e.

 	
 Specified Government Ineligibles
 [(12c) * (12d)]:

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13. 

 	
 Net Pool Balance [(11) -(12e)]:

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14. 

 	
 Aging

 Schedule:

 	
 Current

 Month

 	
 %

 	
 One Month

 Prior

 	
 Two Months

 Prior

 	
 Three Months

 Prior

 
	
  

 	
 a.

 	
  

 	
 1-60 Days Past Invoice (Net of
 Disallowance)

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
  

 	
 61-90 Days Past Invoice (Net of
 Disallowance)

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
   91-120 Days Past
 Invoice (Net of Disallowance)

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 d.

 	
   121-150 Days Past
 Invoice (Net of Disallowance)

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 e.

 	
   151-180 Days Past
 Invoice (Net of Disallowance)

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 f.

 	
  

 	
 181+ Days Past Invoice (Net of
 Disallowance)

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 g.

 	
  

 	
 Total:

 	
  

 	
  

 	
  

 	
  

 	
  

 

Quest Diagnostics Receivables Inc.

For the Month Ended: 

[MM/DD/YYYY] 

(Page 2)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 II. Calculations Reflecting
 Current Activity

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 15. CP
 Proceeds Outstanding

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.
 Required Reserve %

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 17.
 Required Reserve [(16) x (13)]:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 18.
 Funding Availability [(13) - (17)]:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 III. Compliance

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 19. Asset
 Interest [(15) + (17) / (13)] < 100%:

 	
  

 	
  

 	
  

 	
 In Compliance

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 20. 3M Avg. Delinquency Ratio
 < 9.00%

 	
  

 	
 9.00

 	
 %

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Delinquency Ratio Current Month

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Delinquency Ratio One Month Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Delinquency Ratio Two Months Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 21. 3M Avg. Default Trigger
 Ratio < 15.40%

 	
  

 	
 15.40

 	
 %

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Default Ratio Current Month

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Default Ratio One Month Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Default Ratio Two Months Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 22. 3M Avg. Dilution Ratio <
 6.00%

 	
  

 	
 6.00

 	
 %

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Dilution Ratio Current Month

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Dilution Ratio One Month Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Dilution Ratio Two Months Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 23. 3M Avg. Missing Information %
 < 7.00%

 	
  

 	
 7.00

 	
 %

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Missing Information% Current Month

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Missing Information% One Month Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Missing Information% Two Months Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 24. 3M Avg. Collections Ratio
 > 32.00%

 	
  

 	
 32.00

 	
 %

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Collection Ratio Current Month

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Collection Ratio One Month Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Collection Ratio Two Months Prior

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 25. Facility Limit [(15)<=
 $400,000

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

Quest Diagnostics Receivables Inc.

For the Month Ended: 

[MM/DD/YYYY] 

(Page 3)

IV. Excess
Concentration: (Calculation)

	
  

 	
  

 	
  

 	
  

 	
  

 
	
                      Eligible
 Receivables

 	
  

 	
 $____________

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
               Allowable Percentage

 	
              Max. Allowable E

 	
 Credit Rating

 
	
  

 	
  

 	
 X.XX%   $____________

 	
 NR/NR

 
	
  

 	
  

 	
 X.XX%   $____________

 	
 A3/P3

 
	
  

 	
  

 	
 X.XX%   $____________

 	
 A2/P2

 
	
  

 	
  

 	
 X.XX%   $____________

 	
 A1/P1

 
	
  

 	
  

 	
 X.XX%   $____________

 	
 A1+/P1

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Largest

 	
 Short-Term

 	
 Allowable

 	
 Total

 	
 Allowable

 	
 Excess

 
	
  

 	
 Obligors

 	
 Debt Rating

 	
 Percentage

 	
 Receivables

 	
 Receivables

 	
 Receivables

 
	
 1

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 5

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 6

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 11

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 15

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
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 20

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 21

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 22

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 23

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
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 25

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Total

 	
  

 	
  

 	
  

 	
  

 	
  

 

The
undersigned hereby represents and warrants that the foregoing is a true and
accurate accounting with respect to outstanding receivables as of [insert date]
in accordance with the Fourth Amended and Restated Credit and Security Agreement
dated as of June __, 2008 and that all representations and warranties related
to such Agreement are restated and reaffirmed.

	
  

 	
  

 	
  

 	
  

 
	
 Signed:

 	
  

 	
  Date:

 	
 [DD-MMM-YY]

 
	
 Title:

 	
  

 	
  

 	
  

 

EXHIBIT 3.1(b)

FORM OF WEEKLY REPORT

	
  

 	
  

 	
  

 
	
 WEEK ENDED

 	
 CASH 

 COLLECTIONS

 	
 REQUISITIONS 

 RECEIVED

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 

EXHIBIT 5.1(H) 

SUBSTANCE OF CORPORATE/UCC OPINIONS

	
  

 	
  

 	
  

 
	
  

 	
 •

 	
 All opinions
 should be addressed to the Agents and the Lenders and should permit reliance
 thereon by (A) the Liquidity Banks and (B) S&P and Moody’s. 

 
	
  

 	
  

 	
  

 
	
  

 	
  •

 	
 The opinion
 giver must be licensed to practice in the state whose law governs the Amended
 and Restated Receivables Sale Agreement and the Third Amended and Restated
 Credit and Security Agreement (i.e., New York) 

 
	
  

 	
  

 	
  

 
	
  

 	
  •

 	
 Corporate/UCC
 opinions should address the following matters as to each of the Loan Parties
 and Originators (collectively, the “Companies”) 

 

                    1.
Each of the Companies has been duly organized and is validly existing and in
good standing under the laws of ___________, with power and authority to
conduct its business as now conducted (or, in the case of the Borrower,
proposed to be conducted), to own, or hold under lease, its assets and to enter
into the Transaction Documents to which it is a party and perform its
obligations thereunder. Based solely on certificates from public officials, we
confirm that each of the Companies is qualified to do business in the following
States: ______. 

                    2.
The execution, delivery and performance of the Transaction Documents to which
any of the Companies is a party and the execution and delivery of the Financing
Statements naming any of the Companies as debtor or seller have been duly
authorized by all necessary action of such Company, and such Transaction
Documents and Financing Statements have been duly executed and delivered by
such Company. 

                    3.
Each of the Transaction Documents constitutes a legally valid and binding
obligation of each of the Companies signatory thereto, enforceable against such
Company in accordance with its terms. 

                    4.
The execution and delivery of the Transaction Documents by each of the
Companies signatory thereto, and the performance of their respective
obligations do not: (a) violate any federal or [insert applicable state(s)]
statute, rule or regulation applicable to the Companies (including, without
limitation, Regulations T, U or X of the Board of Governors of the Federal
Reserve System), (b) violate the provisions of the Companies’ respective
Organic Documents, (c) result in the breach of or a default under, the creation
of a lien under or the acceleration of indebtedness pursuant to any indenture,
credit agreement, lease, note or other agreement, instrument or contract or any
judgment, writ or other court order, in any of the foregoing cases, which has
been identified to you as being material to any of the Companies, or (d)
require any consents, approvals, authorizations, registrations, declarations or
filings by any of the Companies under any federal or [insert applicable
state(s)] statute, rule or regulation applicable to any of the Companies of the
[insert applicable states’ LLC/Corporate Statutes] except [(i)] the filing of
the Financing Statements and UCC-3 Amendments in the Office of the
_______________ (the “Filing Office(s)”)[, and (ii) those consents, approvals,
authorizations, 

registrations,
declarations and filings set forth on Schedule __ hereto, each of which has
already been obtained or made]. 

                    5.
The provisions of the Receivables Sale Agreement are effective to create a
valid security interest (as defined in the New York UCC) in favor of the
Borrower and its assigns in that portion of the Receivables and Related Assets
which constitute accounts or general intangibles. The provisions of the Third
Amended and Restated Credit and Security Agreement are effective to create a
valid security interest (as defined above) in favor of the Administrative Agent
for the benefit of the Secured Parties in that portion of the Collateral which
constitutes accounts or general intangibles as security for the payment of the
Obligations. 

                    6.
Each of the Financing Statements is in appropriate form for filing in the
Filing Office specified on the face thereof. Upon proper filing of the
Financing Statements naming any of the Originators, as debtor, the Borrower, as
secured party and the Administrative Agent, as assignee of secured party, the
security interest of the Borrower and its assigns in that portion of the
Receivables and Related Assets transferred under the Receivables Sale Agreement
constituting accounts or general intangibles will be perfected and assigned of
record to the Administrative Agent. Upon proper filing of the Financing
Statements naming the Borrower, as debtor, and the Administrative Agent, as secured
party, the security interest of the Administrative Agent for the benefit of the
Secured Parties in that portion of the Collateral constituting accounts or
general intangibles will be perfected. 

                    7.
Based solely on our review of the Search Reports, and assuming (a) the proper
filing of the Financing Statements in the appropriate Filing Offices, and (b)
the absence of any intervening filings between the date and time of the Search
Reports and the date and time of the filing of the Financing Statements in the
Filing Offices, the security interests of the Administrative Agent for the
benefit of Secured Parties in the Collateral described in #6 above will be
prior to any other security interest granted by any of the Companies in such collateral,
the priority of which is determined solely by the filing of a financing
statement in the applicable Filing Office. 

                    8.
None of the Companies is an “investment company” within the meaning of the
Investment Company Act of 1940, as amended. 

SCHEDULE 6.1(N) 

FEDERAL TAXPAYER ID NUMBER, CHIEF EXECUTIVE OFFICE, PRINCIPAL

PLACE(S) OF BUSINESS AND OTHER RECORDS LOCATION(S)

	
  
 	
  
 
	
 Federal
 Taxpayer I.D. No.:
 	
 22-3695703
 
	
  
 	
  
 
	
 Chief
 Executive Office:
 	
 300 Delaware
 Avenue, Suite 562
 
	
  
 	
 Wilmington,
 DE 19801

	
  
 	
  
 
	
 Principal
 Place of Business:
 	
 300 Delaware
 Avenue, Suite 562
 
	
  
 	
 Wilmington,
 DE 19801
 
	
  
 	
  
 
	
 Records
 Locations:
 	
 Above
 addresses plus the addresses listed on Schedule 2.1(o) to the Receivables Sale
 Agreement.
 

SCHEDULE 6.1(O)

LOCKBOXES AND ASSOCIATED ACCOUNTS

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 BANK
 	
  
 	
 ACCOUNT_TYPE
 	
 ACCTNO
 	
 ACCOUNT_NAME
 	
 STATE
 	
 PO_Address
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Bank of America
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Concentration
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
 *
 	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
 Depository
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
  
 
	
  
 	
  
 	
  
 	*
	
 MetWest
 Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 842210 Dallas, TX 75284-2210
 
	
  
 	
  
 	
  
 	*
	
 MetWest
 Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories, Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 91514 Los Angeles, CA 90074
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
 Bank
 of America Lockbox Services File 57457 Ground Level, Unit 5195 1000 W. Temple
 St. Los Angeles, CA 90074-7
 
	
 Bank of America
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
 Bank
 of America Lockbox Services Quest Diagnostics File 57458 Los Angeles, CA
 90012
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
 Bank
 of America Lockbox Services Quest Diagnostics File 57468 Los Angeles, CA
 90012
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
 Bank
 of America Lockbox Services Quest Diagnostics File 57459 Los Angeles, CA
 90012
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
 Quest
 Diagnostics File 551700 Los Angeles, CA 90074-1700
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories, Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 841725 Dallas, TX 75284-1725
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories, Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 14730 St. Louis, MO 63150
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 12018 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13317 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 12467 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 12015 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Nichols Institute, Inc.
 	
 VA
 	
 Quest
 Diagnostics 12436 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Nichols Institute, Inc.
 	
 VA
 	
 Quest
 Diagnostics 12438 Collections Center Drive Chicago, IL 60693
 
	
 Bank of America
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 NV
 	
 Quest
 Diagnostics 12323 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 NV
 	
 Quest
 Diagnostics 14542 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 NV
 	
 Quest
 Diagnostics 14548 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 NV
 	
 Quest
 Diagnostics 14550 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 NV
 	
 Quest
 Diagnostics 14553 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 NV
 	
 Quest
 Diagnostics 12344 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 NV
 	
 Quest
 Diagnostics 12362 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 12989 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13141 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13156 Collections Center Drive Chicago, IL 60693-3156
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13305 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13702 Collections Center Drive Chicago, IL 60693
 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Bank of America
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13695 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 MD
 	
 Quest
 Diagnostics 13321 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 MD
 	
 Quest
 Diagnostics 7022 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 MD
 	
 Quest
 Diagnostics 7584 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13747 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics Receivables, Inc. PO Box 50320, Los Angeles, CA 90074-0320
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics Receivables, Inc. PO Box 50314, Los Angeles, CA 90074-0314
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics Receivables, Inc. PO Box 50331, Los Angeles, CA 90074-0331
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics Receivables, Inc. PO Box 50342, Los Angeles, CA 90074-0342
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics Receivables, Inc. PO Box 50368, Los Angeles, CA 90074-0368
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics Receivables, Inc. PO Box 50355, Los Angeles, CA 90074-0355
 
	
 Bank of America
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Nichols Institute
 	
 CA
 	
 Quest
 Diagnostics 3866 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13005 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13001 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13308 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics 13138 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 MD
 	
 Quest
 Diagnostics 7700 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Nichols Institute
 	
 CA
 	
 Quest
 Diagnostics 3924 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 DE
 	
 Quest
 Diagnostics 13313 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 DE
 	
 Quest
 Diagnostics 96451 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 DE
 	
 Quest
 Diagnostics 7402 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Incorporated
 	
 DE
 	
 Quest
 Diagnostics 98917 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 MA
 	
 Quest
 Diagnostics 5763 Collections Center Drive Chicago, IL 60693
 
	
 Bank of America
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 MetWest
 Inc.
 	
 DE
 	
 Quest
 Diagnostics 2358 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 MetWest
 Inc.
 	
 DE
 	
 Quest
 Diagnostics 2337 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 MetWest
 Inc.
 	
 DE
 	
 Quest
 Diagnostics 2032 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 MetWest
 Inc.
 	
 DE
 	
 Quest
 Diagnostics 13325 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics of Pennsylvania Inc.
 	
 DE
 	
 Quest
 Diagnostics 2178 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics of Pennsylvania Inc.
 	
 DE
 	
 Quest
 Diagnostics 2249 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics of Pennsylvania Inc.
 	
 DE
 	
 Quest
 Diagnostics 2444 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 CT
 	
 Quest
 Diagnostics 2966 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 CT
 	
 Quest
 Diagnostics 2025 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 CT
 	
 Quest
 Diagnostics 13979 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 CT
 	
 Quest
 Diagnostics 2829 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 CT
 	
 Quest
 Diagnostics 13661 Collections Center Drive Chicago, IL 60693
 
	
 Bank of America
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 MA
 	
 Quest
 Diagnostics 5145 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 MA
 	
 Quest
 Diagnostics 5511 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 MA
 	
 Quest
 Diagnostics 5480 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 MA
 	
 Quest
 Diagnostics 3210 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 MA
 	
 Quest
 Diagnostics 5035 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 MA
 	
 Quest
 Diagnostics 5239 Collections Center Drive Chicago, IL 60693
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics LLC
 	
 MA
 	
 Quest
 Diagnostics 3305 Collections Center Drive Chicago, IL 60693
 
	
 Bank of New York
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Concentration
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
  
 
	
 Fifth Third Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 635907 Cincinatti, OH 45274-5907
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 740020 Cincinatti, OH 45274-0020
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 - NRSC PO Box 740698 Cincinatti, OH 45274-0698
 
	
 JP Morgan Chase Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Concentration
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 78874 Phoenix, AZ 85062-8874
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
 Quest
 Diagnostics Incorporated PO Box 78073 Phoenix, AZ 85062-8073
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
 Quest
 Diagnostics Incorporated PO Box 79164 Phoenix, AZ 85062-9164
 
	
 JP Morgan Chase Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
 Quest
 Diagnostics PO Box 78406 Phoenix, AZ 85062-8406
 
	
  
 	
  
 	
  
 	*
	
 Unilab
 Corporation
 	
 DE
 	
 Quest
 Diagnostics PO Box 29610 Phoenix, AZ 85038-9610
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 NV
 	
 Quest
 Diagnostics PO Box 79025 Phoenix, AZ 85062-79025
 
	
 Key Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Incorporated
 	
 DE
 	
 Quest
 Diagnostics, PO Box 5079, Portland, OR 97208-5079
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Incorporated
 	
 DE
 	
 Quest
 Diagnostics, PO Box 5130, Portland, OR 97208-5130
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Incorporated
 	
 DE
 	
 Quest
 Diagnostics PO Box 5018 Portland, Oregon 97208-5018
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Incorporated
 	
 DE
 	
 Quest
 Diagnostics PO Box 4194 Portland, Oregon 97208-4194
 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 M & T Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Concentration
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Nichols Institute
 	
 VA
 	
 Quest
 Diagnostics - AML PO Box 64168 Baltimore, MD 21264-4168
 
	
 M & T Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 64278 Baltimore, MD 21264-4278
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 64196 Baltimore, MD 21264-4196
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 64838 Baltimore, MD 21264-4838
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 MD
 	
 Quest
 Diagnostics PO Box 64797 Baltimore, MD 21264-4797
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 MD
 	
 Quest
 Diagnostics PO Box 64966 Baltimore, MD 21264-4966
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 MD
 	
 Quest
 Diagnostics PO Box 64083 Baltimore, MD 21264-4083
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 MA
 	
 Quest
 Diagnostics PO Box 64363 Baltimore, MD 21264-4363
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 MA
 	
 Quest
 Diagnostics PO Box 64480 Baltimore, MD 21264-4480
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 CT
 	
 Quest
 Diagnostics PO Box 64969 Baltimore, MD 21264-4969
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 CT
 	
 Quest
 Diagnostics PO Box 64053 Baltimore, MD 21264-4053
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 64253 Baltimore, MD 21264-4253
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 64604 Baltimore, MD 21264-4604
 
	
 M & T Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 64878 Baltimore, MD 21264-4878
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 64272 Baltimore, MD 21264-4272
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 64477 Baltimore, MD 21264-4477
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables, Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 64804 Baltimore, MD 21264-4804
 
	
 National City Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Concentration
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 LabOne
 of Ohio, Inc.
 	
 DE
 	
 LabAlliance,
 Inc. PO Box 695018 Cincinnati, OH 45269-5018
 
	
  
 	
  
 	
  
 	*
	
 LabOne
 of Ohio, Inc.
 	
 DE
 	
 LabOne
 of Ohio, Inc. PO Box 692165 Cincinnati, OH 45269-2165
 
	
 PNC Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Concentration
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables
 	
 DE
 	
  
 
	
  
 	
  
 	
 Depository
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 No
 address-acct only used for wires-need to list for NRSC audit
 
	
 PNC Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Depository
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables
 	
 DE
 	
 Quest
 Orbit2 Collections, PO Box 822328, Philadelphia, PA 19182-2328
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 820433 Philadelphia, PA 19182-0433
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 820927 Philadelphia, PA 19182-0927
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 13279 Philadelphia, PA 19101-3279
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 13190 Philadelphia, PA 19101-3190
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 822413 Philadelphia, PA 19182-2413
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 824365 Philadelphia, PA 19182-4365
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 822504 Philadelphia, PA 19182-2504
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 8060 Philadelphia, PA 19101-8060
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 822510 Philadelphia, PA 19182-2510
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics/LabOne Manual PO Box 822437, Philadelphia PA 19182-2437
 
	
 PNC Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 822546 Philadelphia, PA 19182-2546
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 822550 Philadelphia, PA 19182-2550
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 822557 Philadelphia, PA 19182-2557
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 824264 Philadelphia, PA 19182-4264
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 824277 Philadelphia, PA 19182-4277
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 11780 Philadelphia, PA 19101-1780
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 824293 Philadelphia, PA 19182-4293
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics/LabOne Manual PO Box 822437, Philadelphia PA 19182-2437
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 827621 Philadelphia, PA 19182-7621
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 41652 Philadelphia, PA 19101-1652
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 2183 Philadelphia, PA 19101-2183
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 41686 Philadelphia, PA 19101-1686
 
	
 PNC Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 41691 Philadelphia, PA 19101-1691
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 41733 Philadelphia, PA 19101-1733
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 827851 Philadelphia, PA 19101-7851
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 827676 Philadelphia, PA 19182-7676
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 820128 Philadelphia, PA 19182-0128
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 827641 Philadelphia, PA 19101-7641
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 820009 Philadelphia, PA 19182-0009
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 827090 Philadelphia, PA 19101-7090
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 7840 Philadelphia, PA 19101-7840
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Diagnostics
 Laboratory of Oklahoma PO Box 676361 Dallas, TX 75217-6361
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 740709 Atlanta, GA 30374-0709
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 740736 Atlanta, GA 30374-0736
 
	
 PNC Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 530458 Atlanta, GA 30353-0458
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 530440 Atlanta, GA 30353-0440
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Clinical Laboratories
 	
 DE
 	
 Quest
 Diagnostics PO Box 828669 Philadelphia, PA 19182-8669
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables
 	
 DE
 	
 Quest
 Diagnostics, PO BoX 822638, Philadelphia, PA 19182-2638
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables
 	
 DE
 	
 Quest
 Diagnostics, PO BoX 822642, Philadelphia, PA 19182-2642
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables
 	
 DE
 	
 Quest
 Diagnostics, PO BoX 822549, Philadelphia, PA 19182-2549
 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

 

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Wachovia Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Concentration
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics of Pennsylvania Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 752131 Charlotte, NC 28275-2131
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics of Pennsylvania Inc.
 	
 DE
 	
 Quest
 Diagnostics PO Box 752151 Charlotte, NC 28275-2151
 
	
 Wells Fargo Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Concentration
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
 Depository
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Quest
 Diagnostics Receivables Inc.
 	
 DE
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Northwest
 Toxicology
 	
 MO
 	
 Northwest
 Tox PO Box 271397 Salt Lake City, UT 84127-1397
 
	
  
 	
  
 	
  
 	*
	
 LabOne,
 Inc.
 	
 MO
 	
 LabOne
 LabCard PO Box 650418 Dallas TX 75320-0418
 
	
  
 	
  
 	
  
 	*
	
 LabOne,
 Inc.
 	
 MO
 	
 LabOne
 SAT. PO Box 201398 Dallas TX 75320-1398
 
	
  
 	
  
 	
  
 	*
	
 LabOne,
 Inc.
 	
 MO
 	
 LabOne
 Inc. PO Box 201395 Dallas TX 75320-1395
 
	
  
 	
  
 	
  
 	*
	
 LabOne,
 Inc.
 	
 MO
 	
 LabOne
 Clinical PO Box 650032 Dallas TX 75320-0032
 
	
  
 	
  
 	
  
 	*
	
 LabOne,
 Inc.
 	
 MO
 	
 Retail
 Clinical Lockbox PO Box 650650 Dallas TX 75320-0650
 
	
 Wells Fargo Bank
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Lockbox
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	*
	
 Systematic
 Business Services, Inc.
 	
 MO
 	
 Systematic
 Business Services, Inc. PO Box 201393 Dallas TX 75320-1393
 
	
  
 	
  
 	
  
 	*
	
 ExamOne
 World Wide, Inc.
 	
 PA
 	
 ExamOne
 PO Box 201392 Dallas TX 75320-1392
 
	
  
 	
  
 	
  
 	*
	
 Central
 Plains Laboratories, LLC
 	
 KS
 	
 Central
 Plains Laboratories LLC PO Box 201394 Dallas TX 75320-1394
 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

	
  

 	
  

 	
  

 
	
 SCHEDULE 14.2

 
	
 NOTICE ADDRESSES AND WIRE TRANSFER
 INFORMATION

 
	
  

 
	
 A. Borrower and initial Servicer

 
	
  

 
	
 Address for notices to both:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 [c/o] Quest
 Diagnostics Inc.

 
	
  

 	
  

 	
 3 Giralda
 Farms 

 
	
  

 	
  

 	
 Madison, NJ
 07940

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Attention:
  Treasurer

 
	
  

 	
  

 	
 Fax:       (973)
 520-2037

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 cc:         General
 Counsel

 
	
  

 	
  

 	
 Fax:           (484)
 676-8630

 

	
  

 	
  

 	
  

 
	
 Wire transfer instructions (unless
 otherwise notified):

 
	
  

 
	
  

 	
 Bank:

 	
 The Bank of
 New York

 
	
  

 	
  

 	
 New York, NY

 
	
  

 	
 Account:

 	
 *

 
	
  

 	
 ABA:

 	
 #021000018

 
	
  

 	
 Account
 Name:

 	
 Quest
 Diagnostics Receivables Inc.

 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

	
  
 	
  
 	
  
 	
  
 	
  
 
	
 B. VFCC
 
	
  
 
	
 Address for notices (other than Borrowing
 Requests):
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Variable
 Funding Capital Company LLC
 
	
  
 	
  
 	
 c/o Wachovia
 Capital Markets, LLC
 
	
  
 	
  
 	
 One Wachovia
 Center
 
	
  
 	
  
 	
 301 South
 College Street
 
	
  
 	
  
 	
 8th Floor,
 NC0600
 
	
  
 	
  
 	
 Charlotte,
 NC 28202
 
	
  
 	
  
 	
 Attention:
 Douglas R. Wilson, Sr.
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Phone: 
 	
 (704)
 374-2520
 
	
  
 	
  
 	
 Fax:
 	
 (704)
 383-9579
 
	
  
 	
  
 	
  
 
	
 With a copy to:
 
	
  
 
	
  
 	
  
 	
 Variable
 Funding Capital Company LLC
 
	
  
 	
  
 	
 c/o AMACAR
 Group, L.L.C.
 
	
  
 	
  
 	
 6525
 Morrison Blvd., Suite 318
 
	
  
 	
  
 	
 Charlotte,
 North Carolina 28211
 
	
  
 	
  
 	
 Attention:
 Douglas K. Johnson
 
	
  
 	
  
 	
  
 
	
  
 	
  
 	
 Phone:
 	 (704) 365-0569
	
  
 	
  
 	
 Fax: 
 	(704) 365-1362
	
  
 	
  
 	
  
 
	
 Wire transfer instructions (unless
 otherwise notified):
 
	
  
 
	
  
 	
  
 	
 Bank Name: 
 	
 Wachovia
 Bank, National Association
 
	
  
 	
  
 	
 City/State: 
 	
 Charlotte,
 NC
 
	
  
 	
  
 	
 ABA Routing
 #: 
 	
 053000219
 
	
  
 	
  
 	
 Account #:
 	
 *
 
	
  
 	
  
 	
 Account
 Name: 
 	
 CP Liability
 Account
 
	
  
 	
  
 	
 Reference: 
 	
 VFCC/Quest
 Diagnostics Receivables Inc.
 
	
  
 	
  
 	
 Attention: 
 	
 Anthony
 Rose, Telephone (704) 715-7495
 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

	
  

 	
  

 	
  

 
	
 C. Wachovia
 Bank, National Association, individually or as Administrative Agent or VFCC
 Agent

 
	
  

 
	
 Address for notices (other than Borrowing
 Requests):

 
	
  

 	
  

 	
  

 
	
  

 	
 Wachovia
 Bank, National Association

 
	
  

 	
 171 17th
 Street, N.W., 4th Floor

 
	
  

 	
 Mail-stop
 GA4524

 
	
  

 	
 Atlanta, GA
 30363

 
	
  

 	
 Attention:

 	
 Elizabeth
 Wagner

 
	
  

 	
 Phone:

 	
 (404)
 214-5456

 
	
  

 	
 Fax:

 	
 (404)
 214-5481

 
	
  

 	
  

 	
  

 
	
 Wire transfer instructions (unless
 otherwise notified):

 

	
  
 	
  
 	
  
 
	
  
 	
 Bank Name:
 	
 Wachovia
 Bank, National Association
 
	
  
 	
 City/State:
 	
 Charlotte,
 NC
 
	
  
 	
 ABA Routing
 #:
 	
 053000219
 
	 
	Account #:
	*

	
  
 	
 Account
 Name:
 	
 CP Liability
 Account
 
	
  
 	
 Reference:
 	
 VFCC/Quest
 Diagnostics Receivables Inc.
 
	
  
 	
 Attention:
 	
 Anthony
 Rose, Telephone (704) 715-7495
 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

	
  
 	
  
 	
  
 
	
 E. The Bank of
Tokyo-Mitsubishi UFJ, Ltd., New York Branch, individually, as Gotham Agent or
Administrative Agent, and Gotham
 
	
  
 	
  
 
	
 Address for notices (other than Borrowing
 Requests):
 
	
  
 
	
  
 	
 Gotham
 Funding Corporation
 
	
  
 	
 c/o The Bank
 of Tokyo-Mitsubishi UFJ, Ltd., New York Branch
 
	
  
 	
 1251 Avenue
 of the Americas
 
	
  
 	
 New York,
 New York 10020-1104 USA
 
	
  
 	
 Attn:
 Securitization Group
 
	
  
 	
 Telephone: 
 	
 (212)
 782-4537/4908
 
	
  
 	
 Facsimile: 
 	
 (212)
 782-6998
 
	
  
 	
  
 
	
 Wire transfer instructions (unless
 otherwise notified):
 
	
  
 
	
  
 	
 Bank of
 Tokyo-Mitsubishi UFJ Trust Company
 
	
  
 	
 ABA #
 026-009-687
 
	
  
 	
 *
 
	
  
 	
 Ref: Quest
 Diagnostics Receivables Inc.
 
	
  
 	
  
 
	 	 
	
  
 	
 BORROWING REQUESTS
 SHOULD BE SENT TO THE
 
	
  
 	
 ADDRESS AND FAX
 NO. SPECIFIED ON EXHIBIT 2.1
 
				

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.EXHIBIT 10.2
 
	 

	 	 	 	 	 	 	 	Confidential portions of this document have been omitted pursuant to a request for confidential treatment and filed separately with Securities and Exchange Commission

	
  

 
	
 EXECUTION COPY

 
	
  

 
	
 Published CUSIP Number: ______

 
	
  

 
	
  

 
	
 CREDIT AGREEMENT,

 
	
  

 
	
 DATED AS OF MAY 31, 2007

 
	
  

 
	
 among

 
	
  

 
	
 QUEST DIAGNOSTICS INCORPORATED

 
	
 as Borrower,

 
	
  

 
	
 AND

 
	
  

 
	
 CERTAIN SUBSIDIARIES OF THE BORROWER

 
	
 as Guarantors,

 
	
  

 
	
 AND

 
	
  

 
	
 THE LENDERS IDENTIFIED HEREIN,

 
	
  

 
	
 AND

 
	
  

 
	
 BANK OF AMERICA, N.A.,

 
	
 as Administrative Agent

 
	
  

 
	
 AND

 
	
  

 
	
 MORGAN STANLEY SENIOR FUNDING, INC.

 
	
 as Syndication Agent

 
	
  

 
	
 AND

 
	
  

 
	
 BARCLAYS BANK PLC,

 
	
 JPMORGAN CHASE BANK, N.A.,

 
	
 MERRILL LYNCH BANK, USA

 
	
 and

 
	
 WACHOVIA BANK, NATIONAL ASSOCIATION

 
	
 as Co-Documentation Agents

 
	
  

 
	
 MORGAN STANLEY SENIOR FUNDING, INC.

 
	
 and

 
	
 BANC OF AMERICA SECURITIES LLC

 
	
 as Joint Lead Arrangers and Joint Book Runners

 

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 
	
 SECTION 1

 	
      DEFINITIONS
 AND ACCOUNTING TERMS

 	
 2

 
	
  

 	
 1.1

 	
 Definitions

 	
 2

 
	
  

 	
 1.2

 	
 Other Interpretive
 Provisions

 	
 27

 
	
  

 	
 1.3

 	
 Accounting
 Terms/Calculation of Financial Covenants

 	
 27

 
	
  

 	
 1.4

 	
 Time

 	
 28

 
	
  

 	
 1.5

 	
 Rounding

 	
 28

 
	
  

 	
 1.6

 	
 Exchange Rates; Currency
 Equivalents

 	
 28

 
	
  

 	
 1.7

 	
 Additional Alternative
 Currencies

 	
 29

 
	
  

 	
 1.8

 	
 Change of Currency

 	
 29

 
	
  

 	
 1.9

 	
 References to Agreements
 and Laws

 	
 30

 
	
  

 	
 1.10

 	
 Letter of Credit Amounts

 	
 30

 
	
 SECTION 2

 	
      CREDIT
 FACILITIES

 	
 30

 
	
  

 	
 2.1

 	
 Term Loans

 	
 30

 
	
  

 	
 2.2

 	
 Revolving Loans

 	
 31

 
	
  

 	
 2.3

 	
 Letter of Credit
 Subfacility

 	
 35

 
	
  

 	
 2.4

 	
 Swing Line Loans
 Subfacility

 	
 41

 
	
  

 	
 2.5

 	
 Competitive Bid Loans
 Subfacility

 	
 42

 
	
  

 	
 2.6

 	
 [Intentionally Omitted]

 	
 45

 
	
  

 	
 2.7

 	
 Continuations and
 Conversions

 	
 45

 
	
  

 	
 2.8

 	
 Minimum Amounts

 	
 45

 
	
 SECTION 3

 	
      GENERAL
 PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT

 	
 46

 
	
  

 	
 3.1

 	
 Interest

 	
 46

 
	
  

 	
 3.2

 	
 Place and Manner of
 Payments

 	
 46

 
	
  

 	
 3.3

 	
 Prepayments

 	
 47

 
	
  

 	
 3.4

 	
 Fees

 	
 48

 
	
  

 	
 3.5

 	
 Payment in full at
 Maturity

 	
 50

 
	
  

 	
 3.6

 	
 Computations of Interest
 and Fees

 	
 50

 
	
  

 	
 3.7

 	
 Pro Rata Treatment

 	
 51

 
	
  

 	
 3.8

 	
 Sharing of Payments

 	
 52

 
	
  

 	
 3.9

 	
 Capital
 Adequacy/Regulation D

 	
 53

 
	
  

 	
 3.10

 	
 Inability To Determine
 Interest Rate

 	
 53

 
	
  

 	
 3.11

 	
 Illegality

 	
 53

 
	
  

 	
 3.12

 	
 Requirements of Law

 	
 54

 
	
  

 	
 3.13

 	
 Taxes

 	
 54

 
	
  

 	
 3.14

 	
 Compensation

 	
 57

 
	
  

 	
 3.15

 	
 Determination and Survival
 of Provisions

 	
 58

 
	
  

 	
 3.16

 	
 Notification by Lenders

 	
 58

 
	
  

 	
 3.17

 	
 Mitigation; Mandatory
 Assignment

 	
 59

 
	
 SECTION 4

 	
      GUARANTY

 	
 59

 
	
  

 	
 4.1

 	
 Guaranty of Payment

 	
 59

 
	
  

 	
 4.2

 	
 Obligations Unconditional

 	
 59

 
	
  

 	
 4.3

 	
 Modifications

 	
 60

 

i

TABLE OF CONTENTS

(continued) 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.4

 	
 Waiver of Rights

 	
 61

 
	
  

 	
 4.5

 	
 Reinstatement

 	
 61

 
	
  

 	
 4.6

 	
 Remedies

 	
 61

 
	
  

 	
 4.7

 	
 Limitation of Guaranty

 	
 61

 
	
  

 	
 4.8

 	
 Rights of Contribution

 	
 62

 
	
  

 	
 4.9

 	
 Release of Guarantors

 	
 62

 
	
 SECTION 5

 	
      CONDITIONS
 PRECEDENT

 	
 62

 
	
  

 	
 5.1

 	
 Closing Conditions to
 Extensions of Credit Made on the Closing Date

 	
 62

 
	
  

 	
 5.2

 	
 Conditions to All Other
 Extensions of Credit

 	
 64

 
	
 SECTION 6

 	
      REPRESENTATIONS
 AND WARRANTIES

 	
 65

 
	
  

 	
 6.1

 	
 Organization and Good
 Standing

 	
 65

 
	
  

 	
 6.2

 	
 Due Authorization

 	
 66

 
	
  

 	
 6.3

 	
 Enforceable Obligations

 	
 66

 
	
  

 	
 6.4

 	
 No Conflicts

 	
 66

 
	
  

 	
 6.5

 	
 Consents

 	
 66

 
	
  

 	
 6.6

 	
 Financial Condition

 	
 67

 
	
  

 	
 6.7

 	
 Intentionally Omitted

 	
 67

 
	
  

 	
 6.8

 	
 Disclosure

 	
 67

 
	
  

 	
 6.9

 	
 No Default

 	
 67

 
	
  

 	
 6.10

 	
 Litigation

 	
 67

 
	
  

 	
 6.11

 	
 Taxes

 	
 67

 
	
  

 	
 6.12

 	
 Compliance with Law

 	
 68

 
	
  

 	
 6.13

 	
 Licensing and
 Accreditation

 	
 68

 
	
  

 	
 6.14

 	
 Title to Properties, Liens

 	
 69

 
	
  

 	
 6.15

 	
 Insurance

 	
 69

 
	
  

 	
 6.16

 	
 Use of Proceeds

 	
 69

 
	
  

 	
 6.17

 	
 Government Regulation

 	
 69

 
	
  

 	
 6.18

 	
 ERISA

 	
 69

 
	
  

 	
 6.19

 	
 Environmental Matters

 	
 70

 
	
  

 	
 6.20

 	
 Intellectual Property

 	
 71

 
	
  

 	
 6.21

 	
 Subsidiaries

 	
 72

 
	
  

 	
 6.22

 	
 Solvency

 	
 72

 
	
  

 	
 6.23

 	
 Taxpayer Identification
 Number

 	
 72

 
	
 SECTION 7

 	
      AFFIRMATIVE
 COVENANTS

 	
 72

 
	
  

 	
 7.1

 	
 Information Covenants

 	
 72

 
	
  

 	
 7.2

 	
 Financial Covenants

 	
 76

 
	
  

 	
 7.3

 	
 Preservation of Existence
 and Franchises

 	
 76

 
	
  

 	
 7.4

 	
 Books and Records

 	
 77

 
	
  

 	
 7.5

 	
 Compliance with Law

 	
 77

 
	
  

 	
 7.6

 	
 Payment of Taxes and Other
 Indebtedness

 	
 77

 
	
  

 	
 7.7

 	
 Insurance

 	
 78

 
	
  

 	
 7.8

 	
 Maintenance of Property

 	
 78

 
	
  

 	
 7.9

 	
 Performance of Obligations

 	
 78

 

ii

TABLE OF CONTENTS

(continued) 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.10

 	
 Use of Proceeds

 	
 78

 
	
  

 	
 7.11

 	
 Audits/Inspections

 	
 78

 
	
  

 	
 7.12

 	
 Additional Credit Parties

 	
 79

 
	
  

 	
 7.13

 	
 Compliance Program

 	
 79

 
	
 SECTION 8

 	
      NEGATIVE
 COVENANTS

 	
 79

 
	
  

 	
 8.1

 	
 Indebtedness

 	
 80

 
	
  

 	
 8.2

 	
 Liens

 	
 81

 
	
  

 	
 8.3

 	
 Nature of Business

 	
 81

 
	
  

 	
 8.4

 	
 Consolidation and Merger

 	
 81

 
	
  

 	
 8.5

 	
 Sale or Lease of Assets

 	
 81

 
	
  

 	
 8.6

 	
 Investments

 	
 82

 
	
  

 	
 8.7

 	
 Transactions with
 Affiliates

 	
 82

 
	
  

 	
 8.8

 	
 Fiscal Year;
 Accounting; Organizational Documents

 	
 82

 
	
  

 	
 8.9

 	
 Stock Repurchases

 	
 83

 
	
  

 	
 8.10

 	
 Sale/Leasebacks

 	
 83

 
	
 SECTION 9

 	
      EVENTS
 OF DEFAULT

 	
 83

 
	
  

 	
 9.1

 	
 Events of Default

 	
 84

 
	
  

 	
 9.2

 	
 Acceleration; Remedies

 	
 86

 
	
  

 	
 9.3

 	
 Allocation of Payments
 After Event of Default

 	
 87

 
	
 SECTION 10

 	
      AGENCY
 PROVISIONS

 	
 88

 
	
  

 	
 10.1

 	
 Appointment

 	
 88

 
	
  

 	
 10.2

 	
 Delegation of Duties

 	
 89

 
	
  

 	
 10.3

 	
 Exculpatory Provisions

 	
 89

 
	
  

 	
 10.4

 	
 Reliance on Communications

 	
 90

 
	
  

 	
 10.5

 	
 Notice of Default

 	
 90

 
	
  

 	
 10.6

 	
 Non-Reliance on
 Administrative Agent and Other Lenders

 	
 91

 
	
  

 	
 10.7

 	
 Indemnification

 	
 92

 
	
  

 	
 10.8

 	
 Administrative Agent in
 Its Individual Capacity

 	
 92

 
	
  

 	
 10.9

 	
 Successor Agent

 	
 92

 
	
  

 	
 10.10

 	
 Agent May File Proofs of
 Claim

 	
 93

 
	
 SECTION 11

 	
      MISCELLANEOUS

 	
 93

 
	
  

 	
 11.1

 	
 Notices, Etc

 	
 94

 
	
  

 	
 11.2

 	
 Right of Set-Off

 	
 96

 
	
  

 	
 11.3

 	
 Benefit of Agreement

 	
 96

 
	
  

 	
 11.4

 	
 No Waiver; Remedies
 Cumulative

 	
 101

 
	
  

 	
 11.5

 	
 Payment of Expenses;
 Indemnification

 	
 101

 
	
  

 	
 11.6

 	
 Amendments, Waivers and
 Consents

 	
 103

 
	
  

 	
 11.7

 	
 Counterparts

 	
 104

 
	
  

 	
 11.8

 	
 Headings

 	
 104

 
	
  

 	
 11.9

 	
 Defaulting Lender

 	
 104

 
	
  

 	
 11.10

 	
 Survival of
 Indemnification

 	
 105

 
	
  

 	
 11.11

 	
 Governing Law; Venue;
 Jurisdiction

 	
 105

 
	
  

 	
 11.12

 	
 Waiver of Jury Trial;
 Waiver of Consequential Damages

 	
 106

 

iii

TABLE OF CONTENTS

(continued) 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.13

 	
 Severability

 	
 106

 
	
  

 	
 11.14

 	
 Further Assurances

 	
 106

 
	
  

 	
 11.15

 	
 Confidentiality

 	
 106

 
	
  

 	
 11.16

 	
 Entirety

 	
 107

 
	
  

 	
 11.17

 	
 Binding Effect; Continuing
 Agreement

 	
 107

 
	
  

 	
 11.18

 	
 USA Patriot Act Notice

 	
 108

 
	
  

 	
 11.19

 	
 No Advisory or Fiduciary
 Responsibility

 	
 108

 
	
  

 	
 11.20

 	
 Judgment Currency

 	
 109

 

iv

	
  

 	
  

 
	
 SCHEDULES

 	
  

 
	
  

 	
  

 
	
 Schedule
 1.01

 	
 Mandatory
 Cost Formulae

 
	
 Schedule
 1.1(a)

 	
 Commitment
 Percentages/Lending Offices

 
	
 Schedule
 2.3(c)

 	
 Existing
 Letters of Credit

 
	
 Schedule
 6.10

 	
 Litigation

 
	
 Schedule 6.21

 	
 Subsidiaries

 
	
 Schedule
 6.23

 	
 Taxpayer
 Identification Number

 
	
 Schedule 8.1

 	
 Indebtedness

 
	
 Schedule 8.2

 	
 Liens

 
	
 Schedule 8.6

 	
 Investments

 
	
 Schedule 8.7

 	
 Affiliate
 Transactions

 
	
 Schedule
 11.1

 	
 Notices

 
	
  

 	
  

 
	
 EXHIBITS

 	
  

 
	
  

 	
  

 
	
 Exhibit
 2.1(c)

 	
 Form of Term
 Note

 
	
 Exhibit 2.2(b)

 	
 Form of
 Notice of Borrowing

 
	
 Exhibit
 2.2(f)

 	
 Form of
 Revolving Note

 
	
 Exhibit
 2.4(b)

 	
 Form of
 Swing Line Loan Request

 
	
 Exhibit
 2.4(d)

 	
 Form of
 Swing Line Note

 
	
 Exhibit
 2.5(b)

 	
 Form of
 Competitive Bid Request

 
	
 Exhibit
 2.5(g)

 	
 Form of
 Competitive Bid Loan Note

 
	
 Exhibit 2.7

 	
 Form of
 Notice of Continuation/Conversion

 
	
 Exhibit
 7.1(c)

 	
 Form of
 Officer’s Certificate

 
	
 Exhibit 7.12

 	
 Form of
 Joinder Agreement

 
	
 Exhibit 11.3(b)

 	
 Form of
 Assignment and Assumption

 

CREDIT AGREEMENT

          THIS
CREDIT AGREEMENT (this “Credit Agreement”), is entered into as of May
31, 2007 among QUEST DIAGNOSTICS INCORPORATED, a Delaware corporation (the “Borrower”),
certain of the Subsidiaries of the Borrower (individually a “Guarantor”
and collectively the “Guarantors”), the various financial institutions
and other Persons from time to time parties hereto (the “Lenders”), BANK
OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative
Agent”) for the Lenders, MORGAN STANLEY SENIOR FUNDING, INC. (“Morgan
Stanley”) as syndication agent (in such capacity, the “Syndication Agent”),
for the Lenders, Barclays Bank PLC, JPMorgan Chase Bank, NA., Merrill Lynch
Bank, USA and Wachovia Bank, National Association, as the co-documentation
agents for the Lenders (in such capacities, the “Co-Documentation Agents”)
for the Lenders and Morgan Stanley and Banc of America Securities LLC, as the
joint lead arrangers and joint lead bookrunners (in such capacities, the “Lead
Arrangers”). 

RECITALS

          WHEREAS, the Borrower, Ace
Acquisition Sub, Inc., a Delaware corporation and wholly-owned subsidiary of
the Borrower (“Merger Sub”) and Ameripath Group Holdings, Inc. (“Ameripath)
have entered into that certain Agreement and Plan of Merger, dated as of April
15, 2007 (as it may be amended from time to time in accordance with its terms,
the “Merger Agreement”), pursuant to which, among other things, (i) the
Borrower will acquire Ameripath by means of a merger (the “Merger”) of
Merger Sub and Ameripath (the “Ameripath Acquisition”), with Ameripath being
the surviving company of the Merger and the Borrower being the 100% owner of
all Capital Securities of Ameripath immediately upon the effectiveness of the
Merger and (ii) in connection with the Ameripath Acquisition, the Borrower will
repay (or cause to be repaid) (a) certain Indebtedness of Ameripath and its
Subsidiaries (the “Ameripath Refinancing”) and (b) certain Indebtedness
of the Borrower and its Subsidiaries (the “Borrower Refinancing” and,
together with Ameripath Refinancing, the “Refinancing”); 

          WHEREAS,
for purposes of consummating the Ameripath Acquisition, the Refinancing, paying
related fees, costs and expenses, and providing financing for the post-Merger
working capital and general corporate needs of the Borrower and its Subsidiaries,
including acquisitions (collectively, the “Transaction”), the Borrower
has requested the following financing facilities: 

	
  

 	
  

 
	
  

 	
           (i) (a) a $1,600,000,000
 term loan facility (the “Term Loan Facility”) and (b) a $750,000,000
 revolving credit facility (the “Revolving Credit Facility”, together
 with the Term Loan Facility, the “Senior Credit Facilities”); and 

 
	
  

 	
  

 
	
  

 	
           (ii) a $1,000,000,000 bridge loan facility; and 

 

          WHEREAS,
the Lenders are willing, on the terms and subject to the conditions hereinafter
set forth, to provide the Senior Credit Facilities; 

          NOW,
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows: 

SECTION 1

DEFINITIONS AND ACCOUNTING TERMS

                    1.1
Definitions.

          As
used herein, the following terms shall have the meanings herein specified
unless the context otherwise requires. Defined terms herein shall include in
the singular number the plural and in the plural the singular:

          “Acquisition” means the acquisition by any Person of (a)
more than 50% of the Capital Stock of another Person, (b) all or substantially
all of the assets of another Person or (c) all or substantially all of a line
of business of another Person, in each case whether or not involving a merger
or consolidation with such other Person.

          “Additional
Credit Party” means
each Person that becomes a Guarantor after the Closing Date, as provided in
Section 7.12 or otherwise.

          “Administrative
Agent” means Bank of
America, N.A. (or any successor thereto) or any successor administrative agent
appointed pursuant to Section 10.9.

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

          “Affiliate” means, with respect to any Person, any other
Person directly or indirectly controlling (including but not limited to all
directors and officers of such Person), controlled by or under direct or
indirect common control with such Person. A Person shall be deemed to control a
corporation if such Person possesses, directly or indirectly, the power (a) to
vote 10% or more of the securities having ordinary voting power for the election
of directors of such corporation or (b) to direct or cause direction of the management and policies of such corporation, whether
through the ownership of voting securities, by contract or otherwise.

          “Affiliated
Practice” means any
physician-owned professional organization, association or corporation that
employs or contracts with physicians engaged in a pathology or other medical
practice and has entered into a Management Services Agreement with the Borrower
or any of its Subsidiaries.

          “Agency
Services Address”
means, with respect to any currency, the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 11.1 with
respect to such currency, or such other address or account with respect to such
currency as the Administrative Agent may from time to time designate by notice
to the Borrower and the Lenders. 

2

          “Agent-Related
Person” means the Administrative Agent (including any successor
administrative agent), together with its Affiliates (including, in the case of
Bank of America in its capacity as the Administrative Agent, BAS), and their
respective officers, directors, employees, agents, counsel and
attorneys-in-fact.

          “Agents”
means Bank of America N.A., in its capacity as Administrative Agent, Morgan
Stanley Senior Funding, Inc., in its capacity as Syndication Agent, Barclays
Bank PLC, in its capacity as Co-Documentation Agent, JPMorgan Chase Bank, N.A., ,
in its capacity as Co-Documentation Agent, Merrill Lynch Bank, USA, in its
capacity as Co-Documentation Agent, and Wachovia Bank, National Association in
its capacity as Co-Documentation Agent.

          “Alternative
Currency” means Euro, Sterling and each other currency (other than Dollars)
that is approved in accordance with Section 1.7.

          “Alternative
Currency Equivalent” means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable
Alternative Currency as determined by the Administrative Agent at such time on
the basis of the Spot Rate (determined in respect of the most recent
Revaluation Date) for the purchase of such Alternative Currency with Dollars.

          “Ameripath
Acquisition” has the meaning given to it in the first recital.

          “Ameripath
Refinancing” has the meaning given to it in the first recital.

          “Applicable
Percentage” means the appropriate applicable percentages corresponding to
the Debt Rating of the Borrower in effect from time to time as described below:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Pricing

 Level

 	
  

 	
 Debt
 Rating

 	
  

 	
 Applicable

 Percentage for

 Eurocurrency Rate

 Revolving Loans

 	
  

 	
 Applicable

 Percentage for Eurocurrency

 Rate Term Loans

 	
  

 	
 Applicable

 Percentage for

 Standby Letter of

 Credit Fees

 	
  

 	
 Applicable
 

 Percentage for

 Facility Fee on

 the Revolving

 Credit Facility

 Commitments

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 I

 	
  

 	
 3 BBB+ from S&P/
3 Baa1 from Moody’s

 	
  

 	
 .320

 	
 %

 	
  

 	
 .400

 	
 %

 	
  

 	
 .320

 	
 %

 	
  

 	
 .080

 	
 %

 
	
 II

 	
  

 	
 3BBB but < BBB+ from S&P/
3Baa2 but <Baa1 from Moody’s

 	
  

 	
 .400

 	
 %

 	
  

 	
 .500

 	
 %

 	
  

 	
 .400

 	
 %

 	
  

 	
 .100

 	
 %

 
	
 III

 	
  

 	
 3BBB- but <BBB from S&P/
3Baa3 but <Baa2 from Moody’s 

 	
  

 	
 .500

 	
 %

 	
  

 	
 .625

 	
 %

 	
  

 	
 .500

 	
 %

 	
  

 	
 .125

 	
 %

 
	
 IV

 	
  

 	
 3BB+ but < BBB- from S&P/
3Ba1 but <Baa3 from Moody’s

 	
  

 	
 .575

 	
 %

 	
  

 	
 .750

 	
 %

 	
  

 	
 .575

 	
 %

 	
  

 	
 .175

 	
 %

 
	
 V

 	
  

 	
 <BB+ or unrated by
 S&P/

 <Ba1 or unrated by Moody’s

 	
  

 	
 1.00

 	
 %

 	
  

 	
 1.250

 	
 %

 	
  

 	
 1.00

 	
 %

 	
  

 	
 .250

 	
 %

 

	
  

 	
  

 
	
  

 	
 The
 Applicable Percentage for the Eurocurrency Rate Revolving Loans, the
 Eurocurrency Rate Term Loans, the Letter of Credit Fees and the Facility Fees
 shall, in each case, be determined and adjusted on the date (each a “Calculation
 Date”) one Business Day after the date on which the Borrower’s
 Debt Rating is upgraded or downgraded in a manner which requires a change in
 the then applicable Pricing Level set forth above. If at any time there is a
 split in the Borrower’s Debt Ratings between S&P and Moody’s, the
 Applicable Percentages shall be determined by the higher of the two Debt
 Ratings (i.e. the lower

 

3

	
  

 	
  

 
	
  

 	
 pricing);
 provided that if the two Debt Ratings are more than
 one level apart, the Applicable Percentage shall be based on the Debt Rating
 which is one level higher than the lower rating. Each Applicable Percentage
 shall be effective from one Calculation Date until the next Calculation Date.
 Any adjustment in the Applicable Percentage shall be applicable to all
 existing Eurocurrency Rate Loans and Letters of Credit as well as any new
 Eurocurrency Rate Loans made or Letters of Credit issued.

 

          “Applicable
Time” means, with respect to any borrowings and
payments in any Alternative Currency, the local time in the place of settlement
for such Alternative Currency as may be determined by the Administrative Agent
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 (i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an
Affiliate of an entity that administers or manages a Lender.

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

          “Assignment
and Assumption” means an Assignment and Assumption substantially
in the form of Exhibit 11.3(b).

          “Attorney
Costs” means all reasonable fees and disbursements of
any law firm or other external counsel and the reasonable allocated cost of
internal legal services and all disbursements of internal counsel.

          “Attributable
Debt” means, with respect to a Sale and Leaseback
Transaction, an amount equal to the lesser of: (a) the fair market value of the
Principal Property (as determined in good faith by the Borrower’s board of
directors); and (b) the present value of the total net amount of rent payments
to be made under the lease during its remaining term, discounted at the rate of
interest set forth or implicit in the terms of the lease, compounded
semi-annually.

          “Authorized
Officer” means any of the chief executive officer,
president, chief financial officer, corporate controller, treasurer or
assistant treasurer of the Borrower.

          “Bank
of America” means Bank of America, N.A. or any successor
thereto.

          “Bankruptcy
Code” means the Bankruptcy Code in Title 11 of the
United States Code, as amended, modified, succeeded or replaced from time to
time.

          “BAS” means Banc of
America Securities LLC.

          “Base
Rate” means, for any day, the rate per annum equal to
the greater of (a) the Federal Funds Rate in effect on such day plus 1⁄2 of 1% or
(b) the Prime Rate in effect on such day. If for any reason the Administrative
Agent shall have determined (which determination shall be conclusive absent
manifest error) that it is unable after due inquiry to ascertain the Federal
Funds Rate for any reason, including the inability or failure of the
Administrative Agent to obtain sufficient quotations in accordance with the
terms hereof, the Base Rate shall be determined without

4

regard
to clause (a) of the first sentence of this definition until the circumstances
giving rise to such inability no longer exist. Any change in the Base Rate due
to a change in the Prime Rate or the Federal Funds Rate shall be effective at
the opening of business on the day specified in the public announcement of such
change.

          “Base
Rate Loan” means any Loan bearing interest at a rate determined by reference to
the Base Rate.

          “BBA
LIBOR” is defined within the definition of “Eurocurrency Rate”.

          “Borrower” means Quest
Diagnostics Incorporated, a Delaware corporation, together with any successors
and permitted assigns.

          “Borrower
Materials” has the meaning set forth in Section 7.1(i).

          “Borrower
Refinancing” has the meaning given to it in the first recital.

          “Bridge
Credit Agreement” means the Bridge Credit Agreement, dated as of
the date hereof, among the Borrower, the lenders party thereto and the Agents.

          “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 Agency Service Address with respect to Loans
denominated in Dollars is located and:

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

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

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

5

          “Businesses”
has the meaning set forth in Section 6.19(a)(i).

          “Calculation
Date” has the meaning set forth in the definition of Applicable Percentage.

          “CAP” means the College of American Pathologists.

          “Capital
Lease” means, as applied to any Person, any lease of any Property (whether
real, personal or mixed) by that Person as lessee which, in accordance with
GAAP, is or should be accounted for as a capital lease on the balance sheet of
that Person and the amount of such obligation shall be the capitalized amount
thereof determined in accordance with GAAP.

          “Capital
Stock” means (a) in the case of a corporation, all classes of capital stock
of such corporation, (b) in the case of a partnership, partnership interests
(whether general or limited), (c) in the case of a limited liability company,
membership interests and (d) any other interest or participation that confers
on a Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person.

          “Cash
Equivalents” means (a) securities issued or directly and fully guaranteed
or insured by the United States of America or any agency or instrumentality
thereof having maturities of not more than eighteen months from the date of
acquisition, (b) Dollar denominated time and demand deposits, certificates of
deposit and banker’s acceptances of (i) any Lender, (ii) any domestic
commercial bank having capital and surplus in excess of $500,000,000 or (iii)
any bank whose short-term commercial paper rating from S&P is at least A-1
or the equivalent thereof or from Moody’s is at least P-1 or the equivalent
thereof (any such bank being an “Approved Bank”), in each case
with maturities of not more than 270 days from the date of acquisition, (c)
commercial paper and variable or fixed rate notes issued by any Approved Bank
(or by the parent company thereof) or any variable rate notes issued by, or
guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof)
or better by S&P or P-1 (or the equivalent thereof) or better by Moody’s
and maturing within six months of the date of acquisition, (d) repurchase
agreements with a bank or trust company (including any of the Lenders) or
recognized securities dealer having capital and surplus in excess of
$500,000,000 for direct obligations issued by or fully guaranteed by the United
States of America in which the Borrower shall have a perfected first priority
security interest (subject to no other Liens) and having, on the date of
purchase thereof, a fair market value of at least 100% of the amount of the
repurchase obligations, (e) Investments in tax-exempt municipal bonds rated A
(or the equivalent thereof) or better by S&P or MIG2 (or the equivalent
thereof) or better by Moody’s, (f) auction rate securities rated AA or better
by S&P or Moody’s, in either case with a reset of no longer than 90 days
and (g) Investments, classified in accordance with GAAP as current assets, in
money market investment programs registered under the Investment Company Act of
1940, as amended, which are administered by reputable financial institutions
having capital of at least $500,000,000 and the portfolios of which are limited
to Investments of the character described in the foregoing subdivisions (a)
through (f).

          “Cash
Interest Expenses” means all Interest Expense actually paid in cash by the
Borrower and its Subsidiaries.

          “CHAMPUS”
means the United States Department of Defense Civilian Health and Medical
Program of the United States or any successor thereto including, without
limitation, TRICARE.

6

          “Change
of Control” means either of the following events:

	
  

 	
  

 
	
  

 	
           (a)
 any “person” or “group” (within the meaning of Section 13(d) or 14(d) of the
 Exchange Act) has become, directly or indirectly, the “beneficial owner” (as
 defined in Rules 13d-3 and 13d-5 under the Exchange Act), by way of merger,
 consolidation or otherwise of 35% or more of the Voting Stock of the Borrower
 on a fully-diluted basis, after giving effect to the conversion and exercise
 of all outstanding warrants, options and other securities of the Borrower
 convertible into or exercisable for Voting Stock of the Borrower (whether or
 not such securities are then currently convertible or exercisable); or

 
	
  

 	
  

 
	
  

 	
           (b)
 during any period of twelve calendar months, individuals who at the beginning
 of such period constituted the board of directors of the Borrower together
 with any new members of such board of directors whose elections by such board
 or board of directors or whose nomination for election by the stockholders of
 the Borrower was approved by a vote of a majority of the members of such
 board of directors then still in office who either were directors at the
 beginning of such period or whose election or nomination for election was
 previously so approved cease for any reason to constitute a majority of the
 directors of the Borrower then in office.

 

          “CLIA”
means the Clinical Laboratory Improvement Amendment as set forth at 42 U.S.C.
263a and the regulations promulgated thereunder, as amended.

          “Closing
Date” means the date on which the conditions set forth in Section
5.1 shall have been fulfilled (or waived in the sole discretion of the Lenders)
and on which the initial Loans shall have been made and/or the initial Letters
of Credit shall have been issued.

          “CMS”
means the Centers for Medicare and Medicaid Services of HHS, any successor
thereof and any predecessor thereof, including the HCFA.

          “Co-Documentation
Agents” has the meaning given to it in the preamble.

          “Code”
means the Internal Revenue Code of 1986 and the rules and regulations
promulgated thereunder, as amended, modified, succeeded or replaced from time
to time.

          “Commitments”
means, without duplication, (a) the commitment of each Lender with respect to
the Term Loan Committed Amount (b) the commitment of each Lender with respect
to the Revolving Committed Amount, (c) the commitment of the Issuing Lender
with respect to the LOC Committed Amount, (d) the commitment of the Swing Line
Lender with respect to the Swing Line Committed Amount and (e) the commitment
of each Lender with respect to the Incremental Revolving Committed Amount.

          “Company”
has the meaning given to it in the preamble.

          “Competitive
Bid” means an offer by a Lender to make a Competitive Bid Loan
pursuant to Section 2.5.

7

          “Competitive
Bid Fee” means $1,000 for each Competitive Bid Request.

          “Competitive
Bid Loan” means a loan made by a Lender in its discretion
pursuant to Section 2.5.

          “Competitive
Bid Loan Notes” means the promissory notes of the Borrower in
favor of each Lender evidencing the Competitive Bid Loans provided pursuant to
Section 2.5, individually or collectively, as appropriate, as such promissory
notes may be amended, modified, supplemented or replaced from time to time and
as evidenced in the form of Exhibit 2.5(g).

          “Competitive
Bid Rate” means, as to any Competitive Bid made by a
Lender in accordance with the provisions of Section 2.5, the rate of interest
offered by the Lender making the Competitive Bid.

          “Competitive
Bid Request” means a request by the Borrower for Competitive
Bids in the form of Exhibit 2.5(b).

          “Credit
Agreement” has the meaning given to it in the preamble.

          “Credit
Documents” means this Credit Agreement, the Notes, any
Joinder Agreement, the LOC Documents, any Notice of Borrowing, any Competitive
Bid Request and any Swing Line Loan Request.

          “Credit
Exposure” has the meaning set forth in the definition of
Required Lenders in this Section 1.1.

          “Credit
Parties” means the Borrower and the Guarantors and “Credit
Party”
means any one of them.

          “Credit
Party Obligations” means, without duplication, all of the
obligations of the Credit Parties to the Lenders (including the Issuing Lender
and the Swing Line Lender) and the Administrative Agent, whenever arising,
under this Credit Agreement, the Notes, or any of the other Credit Documents.

          “Debt
Rating” means the long-term senior unsecured,
non-credit enhanced debt rating of the Borrower from S&P and Moody’s.

          “Default” means any
event, act or condition which with notice or lapse of time, or both, would
constitute an Event of Default.

          “Defaulting
Lender” means, at any time, any Lender that, (a) has
failed to make a Loan or purchase a Participation Interest required pursuant to
the terms of this Credit Agreement (but only for so long as such Loan is not
made or such Participation Interest is not purchased), (b) has failed to pay to
the Administrative Agent or any Lender an amount owed by such Lender pursuant
to the terms of this Credit Agreement (but only for so long as such amount has
not been repaid) or (c) has been deemed insolvent or has become subject to a
bankruptcy or insolvency proceeding or to a receiver, trustee or similar
official.

8

          “Dividends”
means any payment of dividends or any other distribution upon any shares of any
class of Capital Stock of the Borrower.

          “Dollar
Equivalent” means, at any time, (a) with respect to any amount denominated
in Dollars, such amount, and (b) with respect to any amount denominated in any
Alternative Currency, the equivalent amount thereof in Dollars as determined by
the Administrative Agent at such time on the basis of the Spot Rate (determined
in respect of the most recent Revaluation Date) for the purchase of Dollars
with such Alternative Currency.

          “Dollars”
and “$” means dollars in lawful currency of the United States of America.

          “Domestic
Subsidiary” means each direct and indirect Subsidiary of the Borrower that
is domiciled or organized under the laws of any State of the United States or
the District of Columbia.

          “EBITDA”
means, for any period, with respect to the Borrower and its Subsidiaries on a
consolidated basis, (a) Net Income for such period (excluding the effect of any
extraordinary or other non-recurring gains and losses (including any gain or
loss from the sale of Property)) plus (b) an amount which, in the
determination of Net Income for such period, has been deducted for (i) Interest
Expense for such period, (ii) total Federal, state, foreign or other income or
franchise taxes for such period, (iii) all depreciation and amortization for
such period, (iv) other items of expense
during such period that do not involve a cash payment at any time (other than
the provision for bad debt in connection with uncollectible accounts
receivable), (v) cash charges during such period for which the Borrower and its
Subsidiaries are reimbursed by a third party during such period, (vi) special
or restructuring items during any such period included in Net Income that do
not involve a cash payment during such period (collectively, “Non-Cash Items”)
and (vii) expenses charged pursuant to FAS 123(R), as promulgated in accordance
with GAAP, during such period minus (c) any actual cash payments during
the applicable period related to Non-Cash Items expensed or reserved under
clauses (v) and (vi) above plus (d) Tender Costs during such period; provided
that, for purposes of calculating the Leverage Ratio and the Interest Coverage
Ratio hereunder, EBITDA shall be calculated as if Ameripath and its
Subsidiaries were Subsidiaries of the Borrower on the Closing Date and during
the twelve-month period preceding such date unless, in the case of any
Subsidiary of Ameripath which has not been a Subsidiary for the entire twelve-month
period preceding the Closing Date, such lesser period of time.

          “Eligible
Assets” means any assets or any business (or any substantial part thereof)
used or useful in the same or a similar line of business as the Borrower and
its Subsidiaries are engaged on the date hereof or other healthcare-related
businesses or businesses reasonably related thereto.

          “Eligible
Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved
Fund and (d) any other Person approved by the Administrative Agent, the Issuing
Lender, the Swing Line Lender and the Borrower (such approval not to be
unreasonably withheld or delayed); provided that (i) the Borrower’s
consent is not required during the existence and continuation of a Default or
an Event of Default, (ii) approval by the Borrower shall be deemed given if no
objection is received by the assigning Lender and the Administrative Agent from
the Borrower within five Business Days after notice of such proposed assignment
has been delivered to the Borrower; (iii) neither the Borrower nor an Affiliate
of the Borrower shall qualify as an Eligible Assignee; and (iv) no competitor
of the Borrower shall qualify as an Eligible Assignee.

9

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

          “Environmental
Laws” means any current or future legally enforceable
requirement of any Governmental Authority pertaining to (a) the protection of
the indoor or outdoor environment, (b) the conservation, management, or use of
natural resources and wildlife, (c) the protection or use of surface water and
groundwater or (d) the management, manufacture, possession, presence, use,
generation, transportation, treatment, storage, disposal, release, threatened
release, abatement, removal, remediation or handling of, or exposure to, any
hazardous or toxic substance or material or (e) pollution (including any
release to land surface water and groundwater) and includes, without
limitation, the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986, 42 USC 9601 et seq., Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984, 42 USC
6901 et seq., Federal Water
Pollution Control Act, as amended by the Clean Water Act of 1977, 33 USC 1251 et seq., Clean Air Act of 1966, as amended, 42 USC
7401 et seq., Toxic
Substances Control Act of 1976, 15 USC 2601 et seq., Hazardous Materials Transportation Act, 49 USC App. 1801 et seq., Occupational Safety and Health Act of
1970, as amended, 29 USC 651 et seq.,
Oil
Pollution Act of 1990, 33 USC 2701 et
seq., Emergency Planning and Community Right-to-Know Act of 1986, 42 USC
11001 et seq., National
Environmental Policy Act of 1969, 42 USC 4321 et seq., Safe Drinking Water Act of 1974, as amended, 42 USC 300(f) et seq., any analogous implementing or successor
law, and any amendment, rule, regulation, order, or directive issued
thereunder.

          “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended, and any successor
statute thereto, as interpreted by the rules and regulations thereunder, all as
the same may be in effect from time to time. References to sections of ERISA
shall be construed also to refer to any successor sections.

          “ERISA
Affiliate” means an entity, whether or not incorporated,
which is treated as a single employer with the Borrower or any Subsidiary of
the Borrower under Sections 414(b) or (c) of the Code and solely for purposes
of Section 412 of the Code under Section 414(m) of the Code.

          “ERISA
Event” means (a) with respect to any Single Employer or Multiple Employer
Plan, the occurrence of a Reportable Event or the substantial
cessation of operations (within the meaning of Section 4062(e) of ERISA); (b)
the withdrawal of the Borrower, any Subsidiary of the Borrower or any ERISA
Affiliate from a Multiple Employer Plan during a plan year in which it was a
substantial employer (as such term is defined in Section 4001(a)(2) of ERISA),
or the termination of a Multiple Employer Plan; (c) the distribution of a
notice of intent to terminate or the actual termination of a Plan pursuant to
Section 4041(a)(2) or 4041A of ERISA; (d) the institution of proceedings to
terminate or the actual termination of any Plan by the PBGC under Section 4042
of ERISA; (e) any event or condition which might constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee
to administer, any Plan; (f) the complete or partial withdrawal of the
Borrower, any Subsidiary of the Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (g) the conditions for imposition of a lien under Section
302(f) of ERISA exist with respect to any Plan; or (h) the adoption of an
amendment to any Plan requiring the provision of security to such Plan pursuant
to Section 307 of ERISA.

10

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

          “Eurocurrency
Rate” means, for any Interest Period with respect to a Eurocurrency
Rate Loan, the rate per annum equal to the British Bankers Association LIBOR
Rate (“BBA LIBOR”), as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as designated
by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period, for deposits
in the relevant currency (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period. If such rate is not
available at such time for any reason, then the “Eurocurrency Rate” for such Interest
Period shall be the rate per annum determined by the Administrative Agent to be
the rate at which deposits in the relevant currency for delivery on the first
day of such Interest Period in Same Day Funds in the approximate amount of the
Eurocurrency Rate Loan being made, continued or converted by Bank of America
and with a term equivalent to such Interest Period would be offered by Bank of
America’s London Branch (or other Bank of America branch or Affiliate) to major
banks in the London or other offshore interbank market for such currency at
their request at approximately 11:00 a.m. (London time) two Business Days prior
to the commencement of such Interest Period.

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

          “Eurocurrency
Reserve Percentage” means, with respect to each Lender, the
percentage (expressed as a decimal) applicable to such Lender which is in
effect from time to time under Regulation D as the reserve requirement
(including, without limitation, any basic, supplemental, emergency, special, or
marginal reserves) applicable with respect to its Eurocurrency liabilities, as
that term is defined in Regulation D (or against any other category of
liabilities that includes deposits by reference to which the interest rate of
Eurocurrency Rate Loans is determined). Eurocurrency Rate Loans made by a
Lender shall be deemed to constitute Eurocurrency liabilities and as such shall
be deemed subject to reserve requirements, if applicable, without benefits of
credits for proration, exceptions or offsets that may be available from time to
time to such Lender.

          “Event
of Default” means any of the events or circumstances specified in
Section 9.1.

          “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder, as amended, modified, succeeded
or replaced from time to time.

          “Existing
Letters of Credit” means the letters of credit described on Schedule
2.3(c).

          “Extension
of Credit” means, as to any Lender, the making of a Loan by such
Lender (or a participation therein by a Lender) or the issuance or increase in
the face amount of, or participation in, a Letter of Credit by such Lender.

          “Facility
Fees” means the fees payable to the Lenders pursuant to Section
3.4(a).

11

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

          “Fee
Letter” means that certain letter agreement dated as of April 23, 2007 among
the Borrower, BAS, Bank of America and Morgan Stanley.

          “Foreign
Subsidiary” means each direct and indirect Subsidiary of the Borrower that is
not a Domestic Subsidiary.

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

          “Funded
Debt” means, without duplication, the sum of (a) all Indebtedness of the
Borrower and its Subsidiaries for borrowed money, (b) all purchase money
Indebtedness of the Borrower and its Subsidiaries, (c) the principal portion of
all obligations of the Borrower and its Subsidiaries under Capital Leases, (d)
all drawn but unreimbursed amounts under all letters of credit (other than
letters of credit supporting trade payables in the ordinary course of business)
issued for the account of the Borrower or any of its Subsidiaries, (e) all
Funded Debt of another Person secured by a Lien on any Property of the Borrower
and its Subsidiaries whether or not such Funded Debt has been assumed by a
Borrower or any of its Subsidiaries, (f) all Funded Debt of any partnership or
unincorporated joint venture to the extent the Borrower or one of its
Subsidiaries is legally obligated with respect thereto and (g) the amount of
principal attributable under any outstanding Synthetic Lease. It is understood
and agreed that Indebtedness incurred pursuant to Hedging Agreements is not
Funded Debt.

          “GAAP” means
generally accepted accounting principles in the United States applied on a
consistent basis and subject to Section 1.3.

          “Government
Acts” has the meaning set forth in Section 2.3(j)(i).

          “Governmental
Authority” means any, Federal, state, local, provincial or foreign court or
governmental agency, authority (including executive authority), instrumentality
or regulatory body.

          “Granting
Lender” has the meaning set forth in Section 11.3(g).

          “Guarantor” means each of
the Material Domestic Subsidiaries of the Borrower, any other Subsidiary of the
Borrower that guaranties any Pari Passu Debt and each Additional Credit Party,
together with their successors and assigns.

12

          “Guaranty”
means the guaranty of the Credit Party Obligations provided by the Guarantors
pursuant to Section 4.

          “Guaranty
Obligations” means, with respect to any Person, without duplication, any
obligations (other than endorsements in the ordinary course of business of
negotiable instruments for deposit or collection) guaranteeing any Indebtedness
of any other Person in any manner, whether direct or indirect, and including
without limitation any obligation, whether or not contingent, (a) to purchase
any such Indebtedness or other obligation or any Property constituting security
therefor, (b) to advance or provide funds or other support for the payment or
purchase of such Indebtedness or obligation or to maintain working capital,
solvency or other balance sheet condition of such other Person (including,
without limitation, maintenance agreements, comfort letters, take or pay
arrangements, put agreements or similar agreements or arrangements) for the
benefit of the holder of Indebtedness of such other Person, (c) to lease or
purchase Property, securities or services primarily for the purpose of assuring
the owner of such Indebtedness or (d) to otherwise assure or hold harmless the
owner of such Indebtedness or obligation against loss in respect thereof. The
amount of any Guaranty Obligation hereunder shall (subject to any limitations
set forth therein) be deemed to be an amount equal to the outstanding principal
amount (or maximum principal amount, if larger) of the Indebtedness in respect
of which such Guaranty Obligation is made.

          “Hazardous
Materials” means any substance, material or waste defined in or regulated
under any Environmental Laws.

          “HCFA”
means the United States Health Care Financing Administration and any successor
thereto, including CMS.

          “Hedging
Agreements” means, collectively, interest rate protection agreements,
foreign currency exchange agreements, commodity purchase or option agreements
or other interest or exchange rate or commodity price hedging agreements, in
each case, entered into or purchased by a Credit Party.

          “HHS”
means the United States Department of Health and Human Services and any
successor thereof.

          “HIPAA”
means the Health Insurance Portability and Accountability Act of 1996, Pub. L.
104-191, Aug. 21, 1996, 110 Stat. 1936 and regulations promulgated thereunder,
as amended from time to time.

          “Incremental
Revolving Loans” has the meaning given to it in Section 2.2(e)(i).

          “Incremental
Revolving Loan Commitment” has the meaning given to it in Section
2.2(e)(i).

          “Incremental
Revolving Committed Amount” has the meaning given to it in Section
2.2(e)(i).

          “Indebtedness”
of any Person means, without duplication, (a) all obligations of such Person
for borrowed money, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, or upon which interest payments are
customarily made, (c) all obligations of

13

such Person
under conditional sale or other title retention agreements relating to Property
purchased by such Person to the extent of the value of such Property (other
than customary reservations or retentions of title under agreements with
suppliers entered into in the ordinary course of business), (d) all
obligations, other than intercompany items, of such Person issued or assumed as
the deferred purchase price of property or services purchased by such Person
which would appear as liabilities on a balance sheet of such Person, (e) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on,
or payable out of the proceeds of production from, property owned or acquired
by such Person, whether or not the obligations secured thereby have been
assumed, (f) all Guaranty Obligations of such Person, (g) the principal portion
of all obligations of such Person under (i) Capital Leases and (ii) any
synthetic lease, tax retention operating lease, off-balance sheet loan or
similar off-balance sheet financing product of such Person where such
transaction is considered borrowed money indebtedness for tax purposes but is
classified as an operating lease in accordance with GAAP, (h) all obligations
of such Person to repurchase any securities which repurchase obligation is
related to the issuance thereof, including, without limitation, obligations
commonly known as residual equity appreciation potential shares, (i) all net
obligations of such Person in respect of Hedging Agreements, (j) the maximum
amount of all performance and standby letters of credit issued or bankers’
acceptances facilities created for the account of such Person and, without
duplication, all drafts drawn thereunder (to the extent unreimbursed), and (k)
the aggregate amount of uncollected accounts receivable of such Person subject
at such time to a sale of receivables (or similar transaction) regardless of
whether such transaction is effected without recourse to such Person or in a
manner that would not be reflected on the balance sheet of such Person in
accordance with GAAP. The Indebtedness of any Person shall include the
Indebtedness of any partnership or unincorporated joint venture in which such
Person is legally obligated.

          “Indemnified
Liabilities” has the meaning set forth in Section 11.5(b)(i).

          “Indemnitees”
has the meaning set forth in Section 11.5(b)(i).

          “Intellectual
Property” has the meaning set forth in Section 6.20.

          “Information”
is defined in Section 11.15.

          “Interest
Coverage Ratio” means, as of the last day of each fiscal quarter, the ratio
of (a) EBITDA for the twelve month period ending on such date to (b) Cash
Interest Expense for the twelve month period ending on such date.

          “Interest
Expense” means, with respect to the Borrower and its Subsidiaries on a
consolidated basis for any period, all interest expense, including, without
duplication, the interest component under Capital Leases, as determined in
accordance with GAAP.

          “Interest
Payment Date” means (a) as to Base Rate Loans and Swing Line Loans, the
last day of each calendar quarter and the Maturity Date, (b) as to Eurocurrency
Rate Loans, the last day of each applicable Interest Period and the Maturity
Date and in addition, where the applicable Interest Period for a Eurocurrency
Rate Loan is greater than three months, then also the date three months from
the beginning of the Interest Period and each three months thereafter and (c)
as to Competitive Bid Loans, on the last day of the Interest Period for each
Competitive Bid Loan and on

14

the
Maturity Date. If an Interest Payment Date falls on a date which is not a
Business Day, such Interest Payment Date shall be deemed to be the next
succeeding Business Day, except that in the case of Eurocurrency Rate Loans
where the next succeeding Business Day falls in the next succeeding calendar
month, then on the next preceding Business Day.

          “Interest
Period” means (a) as to Eurocurrency Rate Loans, a period of one, two, three
or six months’ duration, as the Borrower may elect, commencing, in each case,
on the date of the borrowing (including continuations and conversions thereof)
and (b) as to Competitive Bid Loans, a period beginning on the date the
Competitive Bid Loan is made and ending on the date specified in the respective
Competitive Bid whereby the offer to make the Competitive Loan was extended,
which shall not be less than 14 days nor more than 180 days duration; provided,
however, (i) if any Interest Period would end on a day which is not a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day (except that where the next succeeding Business Day falls in the
next succeeding calendar month, then on the next preceding Business Day), (ii)
no Interest Period shall extend beyond the Maturity Date and (iii) where an
Interest Period begins on a day for which there is no numerically corresponding
day in the calendar month in which the Interest Period is to end, such Interest
Period shall end on the last Business Day of such calendar month.

          “Investment” in any Person
means (a) the acquisition (whether for cash, property, services, assumption of
Indebtedness, securities or otherwise) of assets, shares of Capital Stock,
bonds, notes, debentures, partnership, joint ventures or other ownership
interests or other securities of such other Person or (b) any deposit with, or
advance, loan or other extension of credit to, such Person (other than deposits
or advances made in connection with the purchase of equipment or other assets
or services in the ordinary course of business) or (c) any other capital
contribution to or investment in such Person, including, without limitation,
any Guaranty Obligation (including any support for a letter of credit issued on
behalf of such Person) incurred for the benefit of such Person.

          “Issuing
Lender” means Bank of America.

          “Issuing
Lender Fees” has the meaning set forth in Section
3.4(b)(ii).

          “Joinder
Agreement” means a Joinder Agreement substantially in the form of Exhibit 7.12.

          “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.

          “Lead
Arrangers” has the meaning given to it in the preamble.

          “Lender” means any of
the Persons identified as a “Lender” on the signature pages hereto, and any
Eligible Assignee which may become a Lender by way of assignment in accordance
with the terms hereof, together with their successors and permitted assigns.

15

          “Lending
Office” means, as to any Lender, the office or offices
of such Lender described as such on Schedule 1.1(a), or such other
office or offices as a Lender may from time notify to the Borrower and the
Administrative Agent.

          “Letter
of Credit” means any letter of credit issued for the
account of the Borrower by the Issuing Lender pursuant to Section 2.3, as such
letter of credit may be amended, modified, extended, renewed or replaced.

          “Letter
of Credit Fees” has the meaning set forth in Section 3.4(b)(i).

          “Leverage
Ratio” means, as of the last day of each fiscal
quarter, the ratio of (a) Funded Debt on such date to (b) EBITDA for the
twelve month period ending on such date.

          “Lien” means any
mortgage, pledge, hypothecation, assignment, deposit arrangement, security
interest, encumbrance, lien (statutory or otherwise), preference, priority or
charge of any kind, including, without limitation, any agreement to give any of
the foregoing, any conditional sale or other title retention agreement, and any
lease in the nature thereof (other than operating leases).

          “Loan” or “Loans” means the Term
Loans, the Revolving Loans, the Competitive Bid Loans and the Swing Line Loans
(or any portion thereof), individually or collectively, as appropriate.

          “Loan
Participant” has the meaning set forth in Section 11.3(d).

          “LOC
Commitment” means the commitment of the Issuing Lender to
issue Letters of Credit for the account of the Borrower in an aggregate face
amount outstanding (together with the amounts of any unreimbursed drawings
thereon) at any time of up to the LOC Committed Amount.

          “LOC
Committed Amount” means ONE HUNDRED FIFTY MILLION DOLLARS
($150,000,000).

          “LOC
Documents” means, with respect to any Letter of Credit,
such Letter of Credit, any amendments thereto, any documents delivered in
connection therewith, any application therefor, and any agreements,
instruments, guarantees or other documents (whether general in application or
applicable only to such Letter of Credit) governing or providing for (a) the
rights and obligations of the parties concerned or at risk or (b) any
collateral security for such obligations.

          “LOC
Obligations” means, at any time, the sum of (a) the maximum
amount which is, or at any time thereafter may become, available to be drawn
under Letters of Credit then outstanding, assuming compliance with all
requirements for drawings referred to in such Letters of Credit plus (b) the
aggregate amount of all drawings under Letters of Credit honored by the Issuing
Lender but not theretofore reimbursed.

          “Management
Services Agreement” means a written management agreement
entered into by the Borrower or any of its Subsidiaries in connection with an
Affiliated Practice, which agreement has been approved in accordance with the
Borrower’s customary policies and procedures (as then in effect) for similar
contracts and agreements.

16

          “Mandatory
Borrowing” has the meaning set forth in Section 2.3(e).

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

          “Material
Adverse Effect” means a material adverse effect on (a) the business,
operations or financial condition of the Borrower and its Subsidiaries taken as
a whole, (b) the ability of a Credit Party to perform its obligations under
this Credit Agreement or any of the other Credit Documents, or (c) the validity
or enforceability of this Credit Agreement, any of the other Credit Documents,
or the rights and remedies of the Lenders hereunder or thereunder taken as a
whole.

          “Material
Domestic Subsidiary” means any wholly-owned Domestic Subsidiary of
the Borrower that, directly or indirectly, (a) owns assets in excess of
$20,000,000 or (b) has annual revenues, as of the most recently ended fiscal
year of the Borrower, in excess of two percent (2%) of the total revenues of
the Borrower and its Subsidiaries on a consolidated basis; provided
that neither Quest Receivables nor any Affiliated Practice shall be deemed to
be a Material Domestic Subsidiary; and provided further that neither
Ameripath nor any of its wholly-owned Domestic Subsidiaries that would
otherwise qualify as a Material Domestic Subsidiary on the date hereof shall be
deemed to be a Material Domestic Subsidiary for purposes of Section 7.12(a)
hereof until the date that the 101⁄2%
Subordinated Note Tender Offer shall have been consummated.

          “Maturity
Date” means the fifth anniversary of the Closing Date.

          “Medicaid”
shall mean that entitlement program under Title XIX of the Social Security Act
that provides federal grants to states for medical assistance based on specific
eligibility criteria.

          “Medicaid
Provider Agreement” means an agreement entered into between a state
agency or other such entity administering the Medicaid program and a health
care provider or supplier under which the health care provider or supplier
agrees to provide services for Medicaid patients in accordance with the terms
of the agreement and Medicaid Regulations.

          “Medicaid
Regulations” means, collectively, (a) all federal statutes (whether
set forth in Title XIX of the Social Security Act or elsewhere) affecting
Medicaid and any statutes succeeding thereto; (b) all applicable provisions of
all federal rules, regulations, manuals and orders and administrative,
reimbursement and other guidelines having the force of law of all Governmental
Authorities promulgated pursuant to or in connection with the statutes
described in clause (a) above; (c) all state statutes and plans for medical
assistance enacted in connection with the statutes and provisions described in
clauses (a) and (b) above; and (d) all applicable provisions of all rules,
regulations, manuals and orders and administrative, reimbursement and other
guidelines having the force of law of all Governmental Authorities promulgated
pursuant to or in connection with the statutes described in clause (c) above
and all state administrative, reimbursement and other guidelines of all
Governmental Authorities having the force of law promulgated pursuant to or in
connection with the statutes described in clause (b) above, in each case as may
be amended, supplemented or otherwise modified from time to time.

          “Medical
Reimbursement Programs” shall mean the Medicare, Medicaid, CHAMPUS
and TRICARE programs and any other healthcare program operated by or financed
in whole or in part

17

by any
foreign, domestic, federal, state or local government and any other
non-government funded third party payor programs.

          “Medicare”
shall mean that government-sponsored entitlement program under Title XVIII of
the Social Security Act that provides for a health insurance system for
eligible elderly and disabled individuals.

          “Medicare
Provider Agreement” means an agreement entered into between CMS or
other such entity administering the Medicare program on behalf of CMS, and a
health care provider or supplier under which the health care provider or
supplier agrees to provide services for Medicare patients in accordance with
the terms of the agreement and Medicare Regulations.

          “Medicare
Regulations” shall mean, collectively, all federal statutes (whether
set forth in Title XVIII of the Social Security Act or elsewhere) affecting the
health insurance program for the aged and disabled established by Title XVIII
of the Social Security Act and any statutes succeeding thereto; together with
all applicable provisions of all rules, regulations, manuals and orders and
administrative, reimbursement and other guidelines having the force of law of
all Governmental Authorities (including, without limitation, the HHS, CMS, the
OIG, or any person succeeding to the functions of any of the foregoing)
promulgated pursuant to or in connection with any of the foregoing having the
force of law, as each may be amended, supplemented or otherwise modified from
time to time.

          “Merger”
has the meaning given to it in the first recital.

          “Merger
Agreement” has the meaning given to it in the first recital.

          “Merger Sub”
has the meaning given to it in the first recital.

          “Moody’s”
means Moody’s Investors Service, Inc., or any successor or assignee of the
business of such company in the business of rating securities.

          “Morgan
Stanley” has the meaning given to it in the preamble.

          “Multiemployer
Plan” means a Plan which is a multiemployer plan as defined in
Sections 3(37) or 4001(a)(3) of ERISA.

          “Multiple
Employer Plan” means a Plan covered by Title IV of ERISA (other than
a Multiemployer Plan) in which the Borrower, any Subsidiary of the Borrower or
any ERISA Affiliate and at least one employer other than the Borrower, any
Subsidiary of the Borrower or any ERISA Affiliate are contributing sponsors.

          “Net
Income” means, for any period, the net income after taxes for such
period of the Borrower and its Subsidiaries on a consolidated basis, determined
in accordance with GAAP and without duplication.

          “Non-Cash
Items” has the meaning set forth in the definition of EBITDA in
Section 1.1.

          “Non-Consenting
Lender” has the meaning set forth in Section 11.6.

18

          “Non-Material
Domestic Subsidiary” means any wholly-owned Domestic Subsidiary that is not
a Guarantor other than Quest Receivables and any Affiliated Practice.

          “Note”
or “Notes” means the Term Notes, the Revolving Notes, the Competitive
Bid Loan Notes and the Swing Line Loan Note, individually or collectively, as
appropriate.

          “Notice
of Borrowing” means a request by the Borrower for a Loan, in the form of Exhibit
2.2(b).

          “Notice
of Continuation/Conversion” means a request by the Borrower to continue an
existing Eurocurrency Rate Loan to a new Interest Period or to convert a
Eurocurrency Rate Loan to a Base Rate Loan or a Base Rate Loan to a
Eurocurrency Rate Loan, in the form of Exhibit 2.5.

          “OIG”
means the Office of Inspector General of HHS and any successor thereof.

          “Other
Taxes” has the meaning given to it in Section 3.13(b).

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

          “Pari
Passu Debt” means all unsecured indebtedness of the Borrower.

          “Participants”
means Lenders with a Revolving Loan Commitment Percentage greater than zero.

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

          “Participation
Interest” means the Extension of Credit by a Lender by way of a purchase of
a participation in (a) Letters of Credit or LOC Obligations as provided in
Section 2.3, (b) Swing Line Loans as provided in Section 2.4 or (c) any Loans
as provided in Section 3.8.

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

          “Patriot
Act Disclosures” means all documentation and other information available to
the Borrower or its Subsidiaries which a Lender, if subject to the Patriot Act,
is required to provide pursuant to the applicable section of the Patriot Act
and which required documentation and information the Administrative Agent or
any Lender reasonably requests in order to comply with their ongoing
obligations under applicable “know your customer” and anti-money laundering
rules and regulations, including the Patriot Act.

19

          “PBGC”
means the Pension Benefit Guaranty Corporation established pursuant to Subtitle
A of Title IV of ERISA and any successor thereto.

          “Permitted
Acquisition” means an Acquisition by the Borrower or any of its
Subsidiaries; provided that (a) substantially all of the Property
acquired (or the Property of the Person acquired) in such Acquisition constitutes
Eligible Assets (or goodwill associated therewith), (b) in the case of an
Acquisition of the Capital Stock of another Person, the board of directors (or
other comparable governing body) of such other Person or its parent shall have
duly approved such Acquisition, (c) on the date of such Acquisition no Event of
Default exists, (d) after giving effect to such Acquisition, no Default or
Event of Default shall exist, (e) if such Acquisition involves the formation of
a new Subsidiary of the Borrower, such Subsidiary complies with Section 7.12,
(f) such Acquisition is undertaken in accordance with all laws, rules,
regulations, orders, writs, judgments, injunctions, decrees and awards to which
any party to such Acquisition may be subject and (g) the Borrower shall have
delivered to the Administrative Agent a compliance certificate for the period
of four full fiscal quarters immediately preceding such acquisition (prepared
in good faith and in a manner and using such methodology which is consistent
with the most recent financial statements delivered pursuant to Section 7.1)
giving pro forma effect to the consummation of such acquisition and evidence
compliance with the covenants set forth in Section 7.2.

          “Permitted
Investments” means Investments which constitute the following: (a) cash
or Cash Equivalents, (b) trade accounts receivable created, acquired or made
in the ordinary course of business, (c) inventory, raw materials, general
intangibles and other current assets acquired in the ordinary course of
business, (d) Investments by the Borrower or one of its Subsidiaries in each
other, (e) Permitted Acquisitions, (f) advances to management personnel and
employees in the ordinary course of business, (g) Investments existing as of
the date hereof; provided that any such Investment in excess of $2,000,000
is set forth on Schedule 8.6, (h) Investments consisting of non-cash
consideration received in the form of securities, notes or similar obligations
in connection with any conveyance, sale, lease, assignment, transfer or other
disposition of any Property by the Borrower or one of its Subsidiaries to any
Person, and which are permitted hereunder, and (i) any other Investment as long
as (i) on the date of such Investment, no Event of Default exists and (ii)
after giving effect to such Investment no Default or Event of Default shall
exist.

          “Permitted
Liens” means (a) Liens securing Credit Party Obligations, if any,
(b) Liens for taxes not yet due or Liens for taxes being contested in good
faith by appropriate proceedings for which adequate reserves determined in
accordance with GAAP have been established (and as to which the Property
subject to any such Lien is not yet subject to foreclosure, sale, collection,
levy or loss on account thereof), (c) Liens in respect of Property imposed by
law arising in the ordinary course of business such as materialmen’s,
mechanics’, warehousemen’s, carrier’s, landlords’ and other nonconsensual
statutory Liens which are not yet due and payable or which are being contested
in good faith by appropriate proceedings for which adequate reserves determined
in accordance with GAAP have been established (and as to which the Property
subject to any such Lien is not yet subject to foreclosure, sale or loss on
account thereof), (d) Liens (other than Liens imposed under ERISA) consisting
of pledges or deposits made in the ordinary course of business to secure
payment of worker’s compensation insurance, unemployment insurance, pensions or
social security programs, (e) Liens arising from good faith deposits in
connection with or to secure performance of tenders, bids, leases, government
contracts, performance and return-of-money bonds and other similar obligations
incurred in the ordinary course of business (other than obligations in respect
of

20

the
payment of borrowed money), (f) Liens arising from good faith deposits in
connection with or to secure performance of statutory obligations and surety
and appeal bonds, (g) easements, rights-of-way, restrictions (including zoning
restrictions), matters of plat, minor defects or irregularities in title and
other similar charges or encumbrances not, in any material respect, impairing
the use of the encumbered Property for its intended purposes, (h) judgment
Liens that would not constitute an Event of Default, (i) Liens in connection
with Indebtedness of the type permitted by Section 8.1(e) incurred by any
Subsidiary, (j) Liens arising by virtue of any statutory or common law
provision relating to banker’s liens, rights of setoff or similar rights as to
deposit accounts or other funds maintained with a creditor depository
institution, (k) Liens existing on the date hereof and identified on Schedule 8.2, (I) Liens upon
Property acquired (or the Property of a Subsidiary that is acquired) after the
Closing Date by the Borrower or its Subsidiaries, which Liens either (i)
existed on such Property before the time of such acquisition and was not
created in anticipation thereof or (ii) were created solely for the purpose of
securing Indebtedness representing, or incurred to finance or refinance, the
cost of such Property or improvements thereon; provided,
however; that (A) no such Lien shall extend to or cover any Property of any
Credit Party other than the Property so acquired and improvements thereon and
proceeds thereof, (B) the principal amount of Indebtedness secured by any such
Lien shall at no time exceed 100% of the fair market value of such Property at
the time it was acquired or constructed and (C) the Indebtedness secured by any
such Lien is permitted hereunder; provided that (x) no
such Lien shall extend to any Property other than the Property subject thereto
on the closing date of such acquisition and (y) the principal amount of the
Indebtedness secured by such Liens shall not be increased, (m) Liens in
connection with Permitted Receivables Financing, (n) Liens with respect to
lease filings for notice purposes only, (o) Liens on purchase money
Indebtedness incurred by the Borrower in an amount not to exceed, in the
aggregate, $100,000,000 less Indebtedness incurred by Subsidiaries of the
Borrower pursuant to Section 8.1(e), (p) Liens on Property of non-wholly owned
Subsidiaries of the Borrower incurred to finance working capital, (q) Liens on
Property of Foreign Subsidiaries securing Indebtedness of the type permitted by
Section 8.1(k) incurred by Foreign Subsidiaries, and (r) renewals and
extensions of the foregoing so long as such Lien (i) does not cover any
additional Property, (ii) does not secure additional Indebtedness and (iii) is not
otherwise prohibited by this Credit Agreement.

          “Permitted
Receivables Financing” means any transaction entered into pursuant to
documentation reasonably acceptable to the Administrative Agent in which (a)
one or more Credit Parties sells, conveys or otherwise transfers to Quest
Receivables and (b) Quest Receivables sells, conveys or otherwise transfers to
any other Person or grants a security interest to any Person in, any
Receivables (whether now existing or hereafter acquired) of a Credit Party, and
any assets related thereto including all collateral securing such Receivables,
all contracts and all Guaranty Obligations or other obligations in respect of
such Receivables, all proceeds of such Receivables and all other assets that
are customarily transferred or in respect of which security interests are
customarily granted in connection with asset securitization transactions
involving Receivables.

          “Person” means any
individual, partnership, joint venture, firm, corporation, limited liability
company, association, trust or other enterprise (whether or not incorporated),
or any Governmental Authority.

          “Plan”
means any employee benefit plan (as defined in Section 3(3) of ERISA) which is
covered by ERISA and with respect to which the Borrower, any Subsidiary of the
Borrower or any

21

ERISA
Affiliate is (or, if such plan were terminated at such time, would under
Section 4069 of ERISA be deemed to be) an “employer” within the meaning of
Section 3(5) of ERISA.

          “Platform”
has the meaning given thereto in Section 7.1(i).

          “Prime
Rate” means the per annum rate of interest established from time to time by
the Administrative Agent at its principal office in Charlotte, North Carolina
(or such other principal office of the Administrative Agent as communicated in
writing to the Borrower and the Lenders) as its Prime Rate. Any change in the
interest rate resulting from a change in the Prime Rate shall become effective
as of 12:01 a.m. of the Business Day on which each change in the Prime Rate is
announced by the Administrative Agent. The Prime Rate is a reference rate used
by the Administrative Agent in determining interest rates on some loans which
may be priced at, above or below such announced rate and is not intended to be the
lowest rate of interest charged on any extension of credit to any debtor.

          “Principal
Property” means any real property and any related buildings, fixtures or
other improvements located in the United States owned by the Borrower or its
Subsidiaries (a) on or in which one of its 30 largest domestic clinical
laboratories conducts operations, as determined by net revenues for the four
most recent fiscal quarters for which financial statements have been filed with
the Securities and Exchange Commission, or (b) the net book value of which at
the time of the determination exceeds 1% of Total Assets.

          “Projections”
has the meaning given thereto in Section 5.1(j).

          “Property”
means any right, title or interest in or to any property or asset of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible.

          “Public
Lender” has the meaning given thereto in Section 7.1(i).

          “Quest
Receivables” means Quest Diagnostics Receivables Incorporated, a Delaware
corporation, a wholly-owned, bankruptcy-remote, special purpose Subsidiary of
the Borrower.

          “Real
Properties” has the meaning given thereto in Section 6.19.

          “Receivable”
means the indebtedness and payment obligations of any Person to any Credit
Party or acquired by any Credit Party (including obligations constituting an
account or general intangible or evidenced by a note, instrument, contract,
security agreement, chattel paper or other evidence of indebtedness or
security) arising from a sale of merchandise or the provision of services in
the ordinary course of business by such Credit Party or the Person from which
such indebtedness and payment obligation were acquired by any Credit Party,
including (a) any right to payment for goods sold or for services rendered and
(b) the right to payment of any interest, sales taxes, finance charges,
returned check or late charges and other obligations of such Person with
respect thereto.

          “Refinancing”
has the meaning given to it in the first recital.

          “Register”
has the meaning given to it in Section 11.3(c).

22

          “Regulation
T, U or X” means Regulation T, U or X, respectively, of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof.

          “Reportable
Event” means any of the events set forth in Section 4043(c) of ERISA, other
than those events as to which the notice requirement has been waived by
regulation or by the PBGC.

          “Required
Lenders” means Lenders whose aggregate Credit Exposure (as hereinafter
defined) constitutes more than 50% of the Credit Exposure of all Lenders at
such time; provided, however, that if any Lender shall be a Defaulting
Lender at such time then there shall be excluded from the determination of
Required Lenders the aggregate principal amount of Credit Exposure of such
Lender at such time. For purposes hereof, the term “Credit Exposure” as
applied to each Lender shall mean (a) at any time prior to the termination of
the Commitments, the sum of (x) the Revolving Loan Commitment Percentage of
such Lender multiplied by the Revolving Committed Amount and (y) the Term Loan
Commitment Percentage of such Lender multiplied by the Term Loan Committed
Amount and (b) at any time after the termination of the Commitments, the sum of
(i) the principal balance of the outstanding Loans of such Lender plus (ii)
such Lender’s Participation Interests in the face amount of the outstanding
Letters of Credit and outstanding Swing Line Loans.

          “Requirement
of Law” means, as to any Person, the articles or certificate of
incorporation and by-laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or final, non-appealable determination
of an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or to which any of its material
Property is subject.

          “Revaluation
Date” means (a) with respect to any Loan, each of the following: (i) each
date of a borrowing of a Eurocurrency Rate Loan denominated in an Alternative
Currency, (ii) each date of a continuation of a Eurocurrency Rate Loan
denominated in an Alternative Currency pursuant to Section 2.7, and (iii) such
additional dates as the Administrative Agent shall determine or the Required
Lenders shall require; and (b) with respect to any Letter of Credit, each of
the following: (i) each date of issuance of a Letter of Credit denominated in
an Alternative Currency, (ii) each date of an amendment of any such Letter of
Credit having the effect of increasing the amount thereof (solely with respect
to the increased amount), (iii) each date of any payment by the Issuing Lender
under any Letter of Credit denominated in an Alternative Currency and (iv) such
additional dates as the Administrative Agent or the Issuing Lender shall
determine or the Required Lenders shall require.

          “Revolving
Committed Amount” means SEVEN HUNDRED AND FIFTY MILLION DOLLARS
($750,000,000) or such lesser amount to which the Revolving Committed Amount
may be reduced pursuant to Section 2.2(d) or increased pursuant to Section
2.2(e).

          “Revolving
Credit Facility” has the meaning given to it in the second recital.

          “Revolving
Loan Commitment Percentage” means, for each Lender, the percentage
identified as its Revolving Loan Commitment Percentage on Schedule 1.1(a),
as such percentage

23

may be
modified in connection with any assignment made in accordance with the
provisions of Section 11.3 and with any Incremental Revolving Loan Commitment.

          “Revolving
Loans” means the Revolving Loans made to the Borrower pursuant to
Section 2.2.

          “Revolving
Notes” means the promissory notes of the Borrower in favor of each
of the Lenders evidencing the Revolving Loans provided pursuant to Section 2.2,
individually or collectively, as appropriate, as such promissory notes may be
amended, modified, supplemented, extended, renewed or replaced from time to
time and as evidenced in the form of Exhibit 2.2(f).

          “S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. or any successor or assignee of the business of such division
in the business of rating securities.

          “Sale
and Leaseback Transaction” means any arrangement with any Person
providing for the leasing by the Borrower or one of its Subsidiaries of any
Principal Property that has been or is to be sold or transferred by the
Borrower or any Guarantor to such Person, as the case may be.

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

          “Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, as amended, modified, succeeded or replaced
from time to time.

          “Senior
Credit Facilities” has the meaning given to it in the second
recital.

          “Single
Employer Plan” means any Plan which is covered by Title IV of ERISA,
but which is not a Multiemployer Plan or a Multiple Employer Plan.

          “Social
Security Act” means the Social Security Act as set forth in Title 42
of the United States Code, as amended, and any successor statute thereto, as
interpreted by the rules and regulations issued thereunder, in each case as in
effect from time to time. References to sections of the Social Security Act
shall be construed also to refer to any successor sections.

          “Solvent”
means, with respect to any Person as of a particular date, that on such date
(a) such Person is able to pay its debts and other liabilities, contingent
obligations and other commitments as they mature in the normal course of business,
(b) such Person does not intend to, and does not believe that it will, incur
debts or liabilities beyond such Person’s ability to pay as such debts and
liabilities mature in their ordinary course, (c) such Person is not engaged in
a business or a transaction, and is not about to engage in a business or a
transaction, for which such Person’s assets would constitute unreasonably small
capital after giving due consideration to the prevailing practice in the
industry in which such Person is engaged or is to engage, (d) the fair value of
the assets of such Person is greater than the total amount of liabilities,
including, without limitation, contingent

24

liabilities,
of such Person and (e) the present fair saleable value of the assets of such
Person is not less than the amount that will be required to pay the probable
liability of such Person on its debts as they become absolute and matured. In
computing the amount of contingent liabilities at any time, it is intended that
such liabilities will be computed at the amount which, in light of all the
facts and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability reduced by the
amount of any contribution or indemnity that can reasonably be expected to be
received.

          “SPC”
has the meaning set forth in Section 11.3(g).

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

          “Spot
Rate” for a currency means the rate determined by the Administrative Agent
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 may obtain
such spot rate from another financial institution designated by the
Administrative Agent if the Person acting in such capacity does not have as of
the date of determination a spot buying rate for any such currency.

          “Sterling”
and “£” mean the lawful currency of the United Kingdom.

          “Stock
Repurchase” has the meaning set forth in Section 8.9.

          “Strategic
Investment Portfolio” means all Investments in Persons in which the
Borrower and its Subsidiaries own less than 50% of the Voting Stock of such
Person.

          “Subsidiary”
means, as to any Person, (a) any corporation more than 50% of whose stock of
any class or classes having by the terms thereof ordinary voting power to elect
a majority of the directors of such corporation (irrespective of whether or not
at the time, any class or classes of such corporation shall have or might have
voting power by reason of the happening of any contingency) is at the time
owned by such Person directly or indirectly through Subsidiaries, and (b) any
partnership, association, joint venture or other entity in which such person
directly or indirectly through Subsidiaries has more than a 50% equity interest
at any time.

          “Swing
Line Committed Amount” means FIFTY MILLION DOLLARS ($50,000,000).

          “Swing
Line Lender” means Bank of America.

          “Swing
Line Loans” means the loans made by the Swing Line Lender pursuant to
Section 2.4.

          “Swing
Line Loan Note” means the promissory note of the Borrower in favor of the
Swing Line Lender evidencing the Swing Line Loans provided pursuant to Section
2.4, as such promissory note may be amended, modified, supplemented, extended,
renewed or replaced from time to time in and as evidenced by the form of Exhibit
2.4(d).

25

          “Swing
Line Loan Request” means a request by the Borrower for a Swing
Line Loan in substantially the form of Exhibit 2.4(b).

          “Syndication
Agent” has the meaning given to it in the preamble.

          “Synthetic
Lease” means any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product where
such transaction is considered borrowed money indebtedness for tax purposes but
is classified as an operating lease in accordance with GAAP.

          “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.

          “Taxes” has the
meaning given to it in Section 3.13(a).

          “101⁄2% Subordinated Note Tender Offer” has the meaning given to it in Section
5.1(f).

          “Tender
Costs” means the costs incurred by the Borrower in connection with any
tender for outstanding indebtedness of the Borrower, and the termination of the
interest rate swap contracts related thereto in an aggregate amount not to
exceed $50,000,000 during the term of this Credit Agreement.

          “Term
Loan Commitment Percentage” means, for each Lender, the percentage
identified as its Term Loan Commitment Percentage on Schedule
1.1(a), as such percentage may be modified in connection with any assignment
made in accordance with the provisions of Section 11.3.

          “Term
Loan Committed Amount” means ONE BILLION SIX HUNDRED MILLION DOLLARS
($1,600,000,000).

          “Term
Loan Facility” has the meaning given to it in the second
recital.

          “Term
Loans” means the Term Loans made to the Borrower pursuant to Section 2.1.

          “Term
Notes” means the promissory notes of the Borrower in favor of each of the
Lenders evidencing the Term Loans provided pursuant to Section 2.1, individually
or collectively, as appropriate, as such promissory notes may be amended,
modified, supplemented, extended, renewed or replaced from time to time and as
evidenced in the form of Exhibit 2.1(c).

          “Termination
Date” means the date on which the Merger Agreement is terminated pursuant
to Section 10.1 of the Merger Agreement (as in effect on the date hereof).

          “Total
Assets” means all items that in accordance with GAAP would be classified as
assets of the Borrower and its Subsidiaries on a consolidated basis.

          “Transaction” has the
meaning given to it in the second recital.

26

          “TRICARE”
means the United States Department of Defense health care program for service
families including, but not limited to, TRICARE Prime, TRICARE Extra and
TRICARE Standard, and any successor to or predecessor thereof (including,
without limitation, CHAMPUS).

          “Voting
Stock” means all classes of the Capital Stock of such Person then
outstanding and normally entitled to vote in the election of directors (or
similar governing authority).

                    1.2 Other Interpretive Provisions.

          With
reference to this Credit Agreement and each other Credit Document, unless
otherwise specified herein or in such other Credit 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 Credit
 Document shall refer to such Credit Document as a whole and not to any
 particular provisions thereof.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 Article, Section, Exhibit and Schedule references are to the Credit 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.

 

          (c)
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”.

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

                    1.3 Accounting Terms/Calculation of Financial Covenants.

	
  

 	
  

 
	
  

 	
           (a)
 Except as otherwise expressly provided herein, all accounting terms used
 herein shall be interpreted, and all financial statements and certificates
 and reports as to financial matters required to be delivered to the Lenders
 hereunder shall be prepared, in accordance with GAAP applied on a consistent
 basis. All calculations made for the purposes of determining compliance with
 this Credit Agreement shall (except as otherwise expressly provided herein)
 be made by application of GAAP applied on a basis consistent with the most
 recent annual or quarterly financial statements delivered pursuant to Section
 7.1 (or, prior to the delivery of the first financial statements pursuant to
 Section 7.1, consistent with the financial statements delivered to the
 Lenders prior to the Closing Date); provided, however, if (a) the
 Borrower shall object to determining

 

27

	
  

 	
  

 
	
  

 	
 such
 compliance on such basis at the time of delivery of such financial statements
 due to any change in GAAP or the rules promulgated with respect thereto or
 (b) the Administrative Agent or the Required Lenders shall so object in
 writing within 30 days after delivery of such financial statements, then such
 calculations shall be made on a basis consistent with GAAP as in effect as of
 the date of the most recent financial statements delivered by the Borrower to
 the Lenders to which no such objection shall have been made.

 
	
  

 	
  

 
	
  

 	
           (b)
 Notwithstanding anything herein to the contrary, for the purposes of
 calculating the financial covenants set forth in Section 7.2, (i) income
 statement items (positive or negative) attributable to any Person or Property
 acquired in a Permitted Acquisition and Indebtedness incurred in connection
 with such Permitted Acquisition shall, without duplication, be treated as if
 such Person or Property was acquired or such Indebtedness incurred as of the
 first day of the twelve month period ending as of the most recently
 completely fiscal quarter of the Borrower and (ii) income statement items
 (positive or negative) attributable to Property disposed of in any asset sale
 permitted by Section 8.5(g) and Indebtedness retired in connection with such
 sale shall, without duplication, be treated as if such sale occurred as of
 the first day of the twelve month period ending as of the most recently
 completed fiscal quarter of the Borrower.

 

                    1.4 Time.

          All
references to time herein shall be references to Eastern Standard Time or Eastern
Daylight Time, as the case may be, unless specified otherwise.

                    1.5 Rounding.

          Any
financial ratios required to be maintained by the Borrower pursuant to this
Credit 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).

                    1.6 Exchange Rates; Currency
Equivalents.

	
  

 	
  

 
	
  

 	
           (a)
 The Administrative Agent shall determine the Spot Rates as of each
 Revaluation Date to be used for calculating Dollar Equivalent amounts of
 Loans denominated in Alternative Currencies. Such Spot Rates shall become
 effective as of such Revaluation Date and shall be the Spot Rates employed in
 converting any amounts between the applicable currencies until the next
 Revaluation Date to occur. Except for purposes of financial statements
 delivered by the Borrower 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 Credit Documents shall
 be such Dollar Equivalent amount as so determined by the Administrative
 Agent.

 
	
  

 	
  

 
	
  

 	
           (b)
 Wherever in this Agreement in connection with a borrowing, conversion,
 continuation or prepayment of a Eurocurrency Rate Loan or the issuance,
 amendment or extension of a Letter of Credit, an amount, such as a required
 minimum or multiple

 

28

	
  

 	
  

 
	
  

 	
 amount, is
 expressed in Dollars, but such borrowing, Eurocurrency Rate Loan or Letter of
 Credit is denominated in an Alternative Currency, such amount shall be the
 relevant Alternative Currency Equivalent of such Dollar amount (rounded to
 the nearest unit of such Alternative Currency, with 0.5 of a unit being
 rounded upward), as determined by the Administrative Agent.

 
	
  

 	
  

 
	
  

 	
           1.7 Additional Alternative Currencies.

 
	
  

 	
  

 
	
  

 	
           (a)
 The Borrower may from time to time request that Eurocurrency Rate Loans be
 made in a currency other than those specifically listed in the definition of
 “Alternative 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 Eurocurrency Rate Loans, such request shall be
 subject to the approval of the Administrative Agent and the Lenders.

 
	
  

 	
  

 
	
  

 	
           (b)
 Any such request shall be made to the Administrative Agent not later than
 11:00 a.m., 20 Business Days prior to the date of the desired making of
 Eurocurrency Rate Loans (or such other time or date as may be agreed by the
 Administrative Agent). In the case of any such request pertaining to
 Eurocurrency Rate Loans, the Administrative Agent shall promptly notify each
 Lender thereof. Each Lender (in the case of any such request pertaining to
 Eurocurrency Rate Loans) shall notify the Administrative Agent, not later than
 11:00 a.m., ten Business Days after receipt of such request whether it
 consents, in its sole discretion, to the making of Eurocurrency Rate Loans in
 such requested currency.

 
	
  

 	
  

 
	
  

 	
           (c)
 Any failure by a Lender to respond to such request within the time period
 specified in the preceding sentence shall be deemed to be a refusal by such
 Lender to permit Eurocurrency Rate Loans to be made in such requested
 currency. If the Administrative Agent and all the Lenders consent to making
 Eurocurrency Rate Loans in such requested currency, the Administrative Agent
 shall so notify the Borrower and such currency shall thereupon be deemed for
 all purposes to be an Alternative Currency hereunder for purposes of any
 borrowings of Eurocurrency Rate Loans. If the Administrative Agent shall fail
 to obtain consent to any request for an additional currency under this
 Section 1.7, the Administrative Agent shall promptly so notify the Borrower.

 
	
  

 	
  

 
	
  

 	
           1.8 Change of Currency.

 
	
  

 	
  

 
	
  

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

 

29

	
  

 	
  

 
	
  

 	
 borrowing in
 the currency of such member state is outstanding immediately prior to such
 date, such replacement shall take effect, with respect to such borrowing, at
 the end of the then current Interest Period.

 
	
  

 	
  

 	 

	
  

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

 	 

	
  

 	
  

 	 

	
  

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

 	 

	
  

 	
  

 	 

	
  

 	
           1.9 References to Agreements
 and Laws.

 	 

				

          Unless
otherwise expressly provided herein, (a) references to organization documents,
agreements (including the Credit 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 Credit Document and (b) references to any law shall
include all statutory and regulatory provisions (having the force of law)
consolidating, amending, replacing, supplementing or interpreting such law.

                    1.10 Letter of Credit Amounts.

          Unless
otherwise specified, all references herein to the amount of a Letter of Credit
at any time shall be deemed to mean the maximum face amount of such Letter of
Credit after giving effect to all increases thereof contemplated by such Letter
of Credit or the LOC Documents related thereto, whether or not such maximum
face amount is in effect at such time.

SECTION 2

CREDIT FACILITIES

	
  

 	
  

 
	
  

 	
           2.1 Term Loans.

 
	
  

 	
  

 
	
  

 	
           (a) Term
 Loan Commitment. Subject to the terms and conditions set forth herein,
 each Lender with a Commitment to make Term Loans severally agrees to make a
 single loan to the Borrower on the Closing Date (each a “Term Loan”
 and collectively the “Term Loans”), in Dollars, in an amount
 equal to such Lender’s Term Loan Commitment Percentage of the Term Loan
 Committed Amount; provided that the aggregate amount of such Term
 Loans made by all Term Loan Lenders shall not exceed the Term Loan Committed
 Amount. Once repaid or prepaid, Term Loans cannot be reborrowed.

 

30

	
  

 	
  

 
	
  

 	
           (b) Funding
 of Term Loans. Each Lender shall make its Term Loan Commitment
 Percentage of the Term Loan Committed Amount available to the Administrative Agent by 1:00 p.m. on the Closing
 Date by deposit, in Dollars, of immediately
 available funds at the Agency Services Address. The amount of the Term Loans will then be made available to the
 Borrower by the Administrative Agent as directed by the Borrower, to the extent the amount of such Term Loans
 are made available to the
 Administrative Agent. All Term Loans made on the Closing Date shall be Base Rate Loans unless the Borrower delivers a
 funding indemnity letter in form and substance
 reasonably acceptable to the Administrative Agent at least three (3) Business
 Days prior to the Closing Date. Thereafter,
 all or any portion of the Term Loans may be converted into Eurocurrency Rate Loans in accordance with the terms of
 Section 2.7. The obligations of the
 Lenders hereunder to make Term Loans and to make payments pursuant to
 Section 10.7 are several and not joint. No Lender shall be responsible for
 the failure or delay by any other Lender in
 its obligation to make Term Loans hereunder; provided, however, that the failure of any Lender to fulfill its
 obligations hereunder shall not
 relieve any other Lender of its obligations hereunder. Unless the
 Administrative Agent shall have
 been notified by any Lender prior to the Closing Date that such Lender does not intend to make available to the
 Administrative Agent its portion of the Term Loans, the Administrative Agent may assume that such Lender has made
 such amount available to the Administrative Agent on the Closing Date, and
 the Administrative Agent in reliance upon such assumption may (in its sole
 discretion but without any obligation to do so) make available to the Borrower a corresponding amount. If such
 Lender’s portion of the Term Loans
 is not in fact made available to the Administrative Agent, the Administrative Agent shall be able to recover
 from such Lender an amount equal to such corresponding amount which the Administrative Agent has made available
 to the Borrower. If such Lender
 does not pay such amount upon the Administrative Agent’s demand
 therefor, the Administrative Agent will promptly notify the Borrower, and the
 Borrower shall immediately pay such amount to the Administrative Agent. The Administrative Agent shall also be entitled to
 recover from such Lender or the Borrower, as the case may be, interest on such amount in respect of each day from
 the date an amount equal to such
 corresponding amount was made available by the Administrative Agent to the Borrower to the date such
 corresponding amount is recovered by the Administrative Agent at a per annum rate equal to (i) from the
 Borrower at the Base Rate or (ii) from such Lender, at a rate per annum equal
 to, during the period to but excluding the date two Business Days after demand therefor, the Federal Funds
 Rate, and, thereafter, the Base
 Rate plus two percent (2%) per annum.

 
	
  

 	
  

 
	
  

 	
           (c) Term Notes. The Term Loans made by each Lender shall be evidenced by a duly executed promissory note of the Borrower
 to each Lender that requests an Term Note in substantially the form of
 Exhibit 2.1(c).

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
           2.2
 Revolving Loans.

 
	
  

 	
  

 
	
  

 	
           (a)
 Revolving Loan Commitment. Subject to the terms and conditions set
 forth herein, including but not limited to Section 5.2, each Lender severally
 agrees to make revolving loans (each a “Revolving Loan” and
 collectively the “Revolving Loans”) to the Borrower, in Dollars or in
 one or more Alternative Currencies, in an amount equal

 

31

	
  

 	
  

 
	
  

 	
 to its Revolving Loan Commitment Percentage, if any, of such
 Revolving Loan, at any time
 and from time to time, during the period from and including the Closing Date
 to but not including the Maturity
 Date (or such earlier date if the Commitments have been terminated as provided herein); provided, however, that, after giving effect to any borrowing of Revolving Loans, the sum of (i) the
 aggregate amount of the Dollar Equivalent
 of Revolving Loans outstanding, plus (ii) the aggregate amount of LOC Obligations outstanding, plus (iii) the aggregate
 amount of Competitive Bid Loans outstanding
 plus (iv)
 the aggregate amount of Swing Line Loans outstanding shall not exceed the
 Revolving Committed Amount, and the Dollar Equivalent of the Revolving Loans denominated in Alternative Currencies at
 any time shall not exceed $100,000,000. Subject to the terms of this Credit Agreement, the Borrower may borrow,
 repay and reborrow Revolving Loans.

 
	
  

 	
  

 
	
  

 	
           (b) Method
 of Borrowing for Revolving Loans. By no later than 11:00 a.m. (i) on the date of the requested borrowing of
 Revolving Loans that will be made as Base Rate Loans or (ii) three Business
 Days prior to the date of the requested borrowing of Revolving Loans that
 will be made as Eurocurrency Rate Loans denominated in Dollars, and (iii) four Business Days (or five Business
 Days in the case of a Special Notice Currency) prior to the date of
 the requested borrowing of Revolving Loans that will be Eurocurrency Rate Loans denominated in
 Alternative Currencies, the Borrower shall provide telephonic notice to the Administrative Agent, followed
 promptly by a written Notice of
 Borrowing in the form of Exhibit 2.2(b) (which may be submitted by telecopy), each of
 such telephonic notice and such written Notice of Borrowing setting forth (A)
 the amount requested, (B) whether
 such Revolving Loans shall accrue interest at the Base Rate or the Eurocurrency Rate, (C) with respect
 to Revolving Loans that will be Eurocurrency
 Rate Loans, the Interest Period applicable thereto and (D) certification that
 the Borrower has complied in all
 respects with Section 5.2. Each such notice must be received by the
 Administrative Agent not later than (i) three Business Days prior to the requested date of any borrowing of, conversion
 to or continuation of Eurocurrency Rate Loans denominated in Dollars or of any conversion of Eurocurrency Rate
 Loans denominated in Dollars to Base
 Rate Loans, (ii) four Business Days (or five Business Days in the case of a Special Notice Currency)
 prior to the requested date of any borrowing
 or continuation of Eurocurrency Rate Loans denominated in Alternative Currencies, and (iii) on the requested date of
 any borrowing of Base Rate Loans; provided, however, that if the
 Borrower wishes to request Eurocurrency Rate Loans having an Interest Period other than one, two,
 three or six months in duration as provided in the definition of “Interest Period,” the applicable notice must be
 received by the Administrative Agent
 not later than 11:00 a.m. (i) four Business Days prior to the requested date of such borrowing, conversion or
 continuation of Eurocurrency Rate Loans
 denominated in Dollars, or (ii) five Business Days (or six Business days in
 the case of a Special Notice
 Currency) prior to the requested date of such borrowing, conversion or continuation of Eurocurrency Rate Loans
 denominated in Alternative Currencies, whereupon the Administrative Agent
 shall give prompt notice to the Lenders of such request and determine whether the requested
 Interest Period is acceptable to all of them. Not later than 11:00 a.m., (i) three Business Days before the requested
 date of such borrowing, conversion or continuation of Eurocurrency Rate Loans
 denominated in Dollars, or (ii) four
 Business Days (or five Business days in the case of a Special Notice

 

32

	
  

 	
  

 
	
  

 	
 Currency) prior to the requested date of such Borrowing, conversion
 or continuation of Eurocurrency
 Rate Loans denominated in Alternative Currencies, the Administrative Agent
 shall notify the Borrower (which notice may be by telephone) whether or not
 the requested Interest Period has been consented to by all the Lenders.

 
	
  

 	
  

 
	
  

 	
           (c)
 Funding of Loans. Upon
 receipt of a Notice of Borrowing, the Administrative Agent shall promptly inform the Lenders as to the terms
 thereof. Each Lender shall make its
 Revolving Loan Commitment Percentage of the requested Revolving Loans available to the Administrative
 Agent in Same Day Funds at the Agency
 Services Address for the applicable currency not later than 1:00 p.m. in the
 case of any Revolving Loans
 denominated in Dollars, and not later than the Applicable Time specified by the Administrative Agent in the
 case of any Revolving Loans in an Alternative
 Currency, in each case on the Business Day specified in the Notice of Borrowing. The amount of the requested Revolving
 Loans will then be made available to the Borrower by the
 Administrative Agent as directed by the Borrower, to the extent the amount of such Revolving Loans are made
 available to the Administrative Agent.

 

          No
Lender shall be responsible for the failure or delay by any other Lender in its
obligation to make Revolving Loans
hereunder; provided, however, that the
failure of any Lender to fulfill its obligations
hereunder shall not relieve any other Lender of its obligations hereunder.
Unless the Administrative Agent shall
have been notified by any Lender prior to the date of any such Revolving Loan that such Lender does not intend
to make available to the Administrative Agent its portion of the Revolving
Loans to be made on such date, the Administrative Agent may assume that such
Lender has made such amount available to the Administrative Agent on the date
of such Revolving Loans, and the
Administrative Agent in reliance upon such assumption may (in its sole discretion
but without any obligation to do so) make available to the Borrower a
corresponding amount. If such Lender’s
portion of the Revolving Loans is not in fact made available to the Administrative Agent, the Administrative Agent
shall be able to recover from such Lender an amount equal to such corresponding amount which the Administrative
Agent has made available to the
Borrower. If such Lender does not pay such amount upon the Administrative
Agent’s demand therefor, the Administrative Agent will promptly notify
the Borrower, and the Borrower shall immediately
pay such amount to the Administrative Agent. The Administrative Agent shall
also be entitled to recover from such Lender or the Borrower, as the
case may be, interest on such amount in respect of each day from the date an
amount equal to such corresponding amount was made available by the Administrative Agent to the Borrower to the date such
corresponding amount is recovered by the Administrative Agent at a per annum
rate equal to (i) from the Borrower at the applicable rate for such
Revolving Loan pursuant to the Notice of Borrowing or (ii) from such Lender, at the Overnight Rate, plus any
administrative, processing or similar fees customarily charged by the
Administrative Agent in connection with the foregoing.

	
  

 	
  

 
	
  

 	
           (d)
 Reductions of Revolving Committed Amount. Upon at least three Business Days’ prior written notice, the
 Borrower shall have the right to permanently reduce, without premium or penalty, all or part of the aggregate
 unused amount of the Revolving Committed Amount at any time or from time to
 time; provided that (i) each partial
 reduction shall be in an aggregate amount at least equal to $10,000,000 and
 in integral multiples of $1,000,000
 above such amount and (ii) no reduction shall be made which would reduce the Revolving Committed
 Amount to an amount less than the

 

33

	
  

 	
  

 
	
  

 	
 aggregate amount of outstanding Revolving Loans plus the aggregate
 amount of outstanding LOC
 Obligations plus the aggregate amount of outstanding Competitive Bid Loans plus the aggregate amount of outstanding
 Swing Line Loans. Any reduction in (or termination of) the Revolving Committed Amount pursuant to this
 Section 2.2(d) shall be permanent
 and may not be reinstated. The Administrative Agent shall immediately notify the Lenders of any reduction in the
 Revolving Committed Amount pursuant to this Section 2.2(d).

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e) Increases
 in Revolving Commitment Amount.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i) At
 any time that no Default has occurred and is continuing, and prior to the Maturity Date, the Borrower may,
 from time to time, notify the Administrative Agent that the Borrower is
 requesting that, on the terms and subject to the conditions contained
 in this Credit Agreement, the Lenders and/or other lenders or other financial institutions not then a party to this
 Credit Agreement provide up to an
 aggregate amount of an additional $250,000,000 Revolving Committed
 Amount to make Revolving Loans to the Borrower (such loans, the “Incremental Revolving Loans”) (any such commitment
 to make Incremental Revolving Loans
 being an “Incremental Revolving Loan Commitment”; and the
 aggregate amount thereof agreed to be provided by the applicable Lenders or other lenders in response
 to any such request, an “Incremental
 Revolving Committed Amount”).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii) Upon receipt of such notice, together with a
 certificate demonstrating pro forma
 compliance with the financial covenants contained in Section 7.2, after giving effect to the increase
 in, and assuming full usage of, the Revolving
 Committed Amount, the Administrative Agent shall use commercially reasonable efforts to arrange for the Lenders or
 other lenders to provide such additional
 Commitments. Nothing contained in this Section or otherwise in this Agreement is intended to commit any Person to
 provide any portion of any such additional Commitments.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii) If
 and to the extent that any Lenders and/or other lenders agree, in their sole discretion, to provide any such
 additional Commitments, pursuant to documentation in form and substance to be
 mutually satisfactory to the Borrower, the Administrative Agent and the
 applicable Lenders, such documentation shall provide (w) that the Revolving Committed Amount shall be increased by
 the aggregate amount of the
 Incremental Revolving Loan Commitments agreed to be so provided, (x) the
 Revolving Loan Commitment Percentage of the respective Lenders in respect of the increased Revolving
 Committed Amount shall be proportionally
 adjusted (provided, however, that for any Lender, the product
 of such Lender’s adjusted Revolving
 Loan Commitment Percentage of a Lender in respect of Revolving Loans
 multiplied by the Revolving Committed Amount as increased pursuant to clause (w) may not exceed an amount equal to the
 Revolving Loan Commitment Percentage of such Lender in respect of
 Revolving Loans immediately prior to any
 adjustment made pursuant to this clause (x) multiplied by the Revolving Committed Amount immediately prior to the

 

34

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 corresponding increase thereof pursuant to clause (w) without the
 consent of such Lender) and
 such adjustment shall be recorded in the Register, (y) at such time and in such manner as the Borrower and the
 Administrative Agent shall agree (it being
 understood that the Borrower and the Administrative Agent will use commercially reasonable efforts to avoid the
 prepayment or assignment of any Eurocurrency Rate Loan on a day other than
 the last day of the Interest Period applicable thereto), the Lenders shall
 assign and assume outstanding Revolving Loans and participations in outstanding Letters of Credit so as to
 cause the amounts of such Revolving
 Loans and participations in Letters of Credit held by each Lender with a
 Revolving Loan Commitment Percentage in excess of zero of the Revolving Loan Commitment to conform to its
 Revolving Loan Commitment Percentage
 of the Revolving Loan Commitment and (z) the Borrower shall execute and deliver any additional Notes, other
 amendments or modifications to any
 Credit Document and any other certificates, consents or legal opinions as the
 Administrative Agent may reasonably
 request, and (notwithstanding anything to the contrary contained in Section 11.6 hereof) each such amendment or modification may be effective without the
 consent of any other Lenders, as may be necessary or appropriate and
 to the extent not materially adverse to the other Lenders in the opinion of the Administrative Agent to effect the
 provisions of this Section 22(e).

 
	
  

 	
  

 	
  

 
	
  

 	
           (f) Revolving Notes. The Revolving Loans
 made by each Lender shall be evidenced
 by a duly executed promissory note of the Borrower to each Lender that requests
 a Revolving Note in substantially the form of Exhibit
 2.2(f).

 
	
  

 	
  

 
	
  

 	
  

 	
 2.3 Letter
 of Credit Subfacility.

 
	
  

 	
  

 	
  

 
	
  

 	
           (a)
 Issuance. Subject to the terms and conditions hereof and
 of the LOC Documents, if any, and
 any other terms and conditions relating to the Borrower which the Issuing Lender may reasonably require (so long as
 such terms and conditions do not impose
 any financial obligation on or require any Lien (not otherwise contemplated
 by this Credit Agreement) to be
 given by any Credit Party or conflict with any obligation of, or
 detract from any action which may be taken by, the Borrower or its
 Subsidiaries under this Credit
 Agreement), the Issuing Lender agrees, in reliance upon the agreements
 of the other Lenders set forth in
 this Section 2.3, from time to time upon request, in its reasonable discretion, to issue (from the
 Closing Date to thirty days prior to the Maturity Date and in a form reasonably acceptable to the
 Issuing Lender), in Dollars, and the Participants
 shall participate in, Letters of Credit for the account of the Borrower; provided, however, that, after giving effect to the issuance (or
 drawdown or extension) of any
 Letter of Credit, (i) the aggregate amount of LOC Obligations shall not at
 any time exceed the LOC Committed
 Amount and (ii) (A) the sum of the aggregate amount of outstanding LOC Obligations, plus (B) the aggregate
 amount of the Dollar Equivalent of Revolving
 Loans outstanding, plus (C) the aggregate amount of Competitive Bid
 Loans outstanding, plus (D) the aggregate
 amount of Swing Line Loans outstanding shall not exceed the Revolving
 Committed Amount and (iii) if any Participant shall be a Defaulting Lender at the time of issuance of any
 Letter of Credit, the amount of such Letter
 of Credit shall be reduced by the amount of such Participant’s Participation

 

35

	
  

 	
  

 	
  

 
	
  

 	
 Interest in such Letter of Credit, unless otherwise agreed by the
 Issuing Lender in its sole discretion.
 The Issuing Lender may require the issuance and expiry date of each Letter of
 Credit to be a Business Day. Each
 Letter of Credit shall be a standby letter of credit issued to support the obligations (including
 pension or insurance obligations), contingent or otherwise, of the Borrower
 or any of its Subsidiaries. Except as otherwise expressly agreed upon
 by all the Participants, no Letter of Credit shall have an original expiry
 date more than one year from the date of
 issuance nor, as extended or otherwise, shall have an expiry date beyond the Maturity Date. Each Letter
 of Credit shall comply with the related
 LOC Documents. The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is
 delivered to it and, in the event of any claim of noncompliance with the Borrower’s instructions
 or other irregularity, the Borrower will immediately notify the
 Issuing Lender.

 
	
  

 	
  

 	
  

 
	
  

 	
           (b) Notice
 and Reports. The request for the issuance of a Letter of Credit shall be submitted to the Issuing Lender at
 least three Business Days prior to the requested date of issuance. The Issuing Lender will, at least quarterly
 and more frequently upon request,
 provide to the Administrative Agent for dissemination to the Lenders a report
 specifying the Letters of Credit which are then issued and outstanding. The Issuing Lender will further provide to the
 Administrative Agent, promptly upon request, copies of the Letters of
 Credit and the other LOC Documents.

 
	
  

 	
  

 
	
  

 	
  

 	
 (c) Participations.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i) On
 the Closing Date, each Participant shall automatically acquire a participation in the liability of the Issuing
 Lender under each Existing Letter of Credit
 in an amount equal to its Revolving Loan Commitment Percentage of such Existing
 Letters of Credit.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii) Each Participant, upon issuance of a Letter of
 Credit, shall be deemed to have purchased without recourse a risk
 participation from the Issuing Lender in
 such Letter of Credit and each LOC Document related thereto and the rights and obligations arising thereunder and
 any collateral relating thereto, in each
 case in an amount equal to its Revolving Loan Commitment Percentage of the obligations under such Letter of Credit, and
 shall absolutely, unconditionally and irrevocably assume, as primary
 obligor and not as surety, and be obligated to pay to the Issuing Lender
 therefor and discharge when due, its Revolving Loan Commitment Percentage of
 the obligations arising under such Letter of Credit. Without limiting the scope and nature of each Participant’s
 participation in any Letter of
 Credit, to the extent that the Issuing Lender has not been reimbursed as required hereunder or under any such Letter of
 Credit or pursuant to a Mandatory Borrowing
 under Section 2.3(e)(i), each such Participant shall fund its Participation Interest in such unreimbursed
 drawing in accordance with the terms of
 Section 2.3(e)(ii). Any such reimbursement shall not relieve or otherwise impair
 the obligation of the Borrower or any other Credit Party to reimburse the Issuing Lender under any Letter of Credit,
 together with interest as hereinafter provided.

 

36

	
  

 	
  

 	
  

 
	
  

 	
           (d) Reimbursement
 by Borrower. In the event of any drawing under any Letter of Credit, the Issuing Lender will
 promptly notify the Borrower. Unless the Borrower shall notify the
 Issuing Lender of its intent to otherwise reimburse the Issuing Lender and shall reimburse the Issuing Lender in
 same day funds within one hour of receipt
 of notice of such drawing from the Issuing Lender, the Borrower shall be
 deemed to have requested a Revolving Loan at the Base Rate in the
 amount of the drawing, the proceeds of
 which will be used to satisfy the reimbursement obligations. The Borrower’s reimbursement obligations hereunder shall be
 absolute and unconditional under all circumstances
 irrespective of (but without waiver of) (i) any rights of set-off, counterclaim or defense to payment the applicable
 account party or the Borrower may claim or have against the Issuing Lender,
 the Administrative Agent, the Lenders, the beneficiary of the Letter of Credit drawn upon or any other Person,
 including without limitation, any defense based on any failure of the
 applicable account party, the Borrower or any other Credit Party to receive consideration or (ii) the
 legality, validity, regularity or
 unenforceability of the Letter of Credit, this Credit Agreement or any other
 Credit Document.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (e) Reimbursement by Lenders.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i) Reimbursement
 with Revolving Loans. On any day on which the Borrower shall have requested, or been deemed to
 have requested, a Revolving Loan
 borrowing to reimburse a drawing under a Letter of Credit (as set forth in clause (d) above), the Administrative Agent
 shall give notice to the Lenders that a Revolving Loan has been requested or deemed requested in connection
 with a drawing under a Letter of
 Credit, in which case a Revolving Loan borrowing comprised solely of Base Rate Loans (each such
 borrowing, a “Mandatory Borrowing”) shall be made from all Lenders (without giving
 effect to any termination of the
 Commitments pursuant to Section 9.2) pro rata based on each Lender’s respective Revolving Loan Commitment
 Percentage and the proceeds thereof
 shall be paid directly to the Issuing Lender for application to the respective LOC Obligations. Each applicable
 Lender hereby irrevocably agrees to
 make such Revolving Loans upon any such request or deemed request on account of each such Mandatory Borrowing in the
 amount and in the manner specified
 in the preceding sentence and in accordance with the terms of Section 2.3(e)(iii) notwithstanding (A) the
 amount of Mandatory Borrowing may not comply with the minimum amount for borrowings of Revolving Loans
 otherwise required hereunder, (B)
 whether any conditions specified in Section 5.2 are then satisfied,
 (C) whether a Default or Event of Default then exists, (D) failure of any such request or deemed request for Revolving
 Loans to be made by the time otherwise
 required hereunder, (E) the date of such Mandatory Borrowing, (F) any reduction in the Revolving Committed Amount or
 any termination of the Commitments,
 or (G) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the
 Issuing Lender, the Borrower or any
 other Person for any reason whatsoever.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 Reimbursement Through Funding of
 Participation Interests. In
 the event that any Mandatory
 Borrowing cannot for any reason be made on the date

 

37

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 otherwise required above (including, without limitation, as a result
 of the commencement of a proceeding under the Bankruptcy Code
 with respect to the Borrower or any other
 Credit Party), the Issuing Lender will promptly notify the Participants of the amount of any unreimbursed
 drawing (as of the date the Mandatory
 Borrowing would otherwise have occurred, but adjusted for any payments
 received from the Borrower on or after such date and prior to the funding of the Participation Interests therein)
 and each Participant shall fund its Participation
 Interest in such unreimbursed drawing by paying to the Issuing Lender, in Dollars and in immediately available
 funds, the amount of such Participant’s
 Revolving Loan Commitment Percentage of such unreimbursed drawing. Each Participant’s obligation to make
 such payment to the Issuing Lender,
 and the right of the Issuing Lender to receive the same, shall be absolute and unconditional, shall not be affected by any
 circumstance whatsoever and without
 regard to (A) the termination of this Credit Agreement or the Commitments hereunder, (B) the existence of a
 Default or Event of Default, (C) the acceleration of the obligations
 hereunder and (D) any set-off, counterclaim, recoupment, defense or other
 right which such Participant may have against the Issuing Lender, the Borrower or any other Person for any reason
 whatsoever. Simultaneously with the
 making of each such payment by a Participant to the Issuing Lender, such Participant shall,
 automatically and without any further action on the part of the Issuing Lender or such Participant, acquire
 a participation in an amount equal
 to such payment (excluding the portion of such payment constituting interest owing to the Issuing
 Lender) in the related unreimbursed drawing
 portion of the LOC Obligation and in the interest thereon and in the related
 LOC Documents, and shall have a claim against the Borrower and the other
 Credit Parties with respect thereto.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 Funding of Mandatory Borrowing or Participation Interest. Each applicable
 Lender (including the Lender acting as Issuing Lender) and each Participant
 shall upon any notice pursuant to Section 2.3(e)(i) or Section 2.3(e)(ii), respectively, make its Revolving
 Loan Commitment Percentage of the unreimbursed
 drawing available to the Administrative Agent, for the benefit of the Issuing
 Lender, by 1:00 p.m. on the day of the notice if notice is given on or before
 11:00 a.m. or by 1:00 p.m. the
 next Business Day if notice is given after 11:00 a.m., in Dollars, of
 immediately available funds at the Agency Services Address. The Administrative Agent shall remit the funds so
 received to the Issuing Lender.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv)
 Failure to Fund. In the
 event any Lender or any Participant shall fail to fund its portion of a Mandatory Borrowing or its Participation
 Interest, respectively, on the date required pursuant to Section 2.3(e)(iii),
 the amount of such Lender’s
 unfunded portion of the Mandatory Borrowing or such Participant’s unfunded Participation Interest
 shall bear interest payable to the Issuing
 Lender upon demand, at a rate per annum equal to the applicable Overnight Rate from time to time in
 effect, plus any administrative, processing
 or similar fees customarily charged by the Issuing Lender in connection
 with the foregoing.

 

38

	
  

 	
  

 	
  

 
	
  

 	
           (f) Modification
 and Extension. The
 issuance of any supplement, modification,
 amendment, renewal, or extensions to any Letter of Credit shall, for purposes hereof, be treated in all respects the
 same as the issuance of a new Letter of Credit hereunder.

 
	
  

 	
  

 	
  

 
	
  

 	
           (g) Applicability of ISP98. Unless otherwise expressly agreed by the
 Issuing Lender and the Borrower
 when a Letter of Credit is issued (including any such agreement applicable to an Existing Letter of Credit), 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.

 
	
  

 	
  

 
	
  

 	
  

 	
 (h) Responsibility of Issuing Lender.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i) It is
 expressly understood and agreed as between the Lenders that the obligations of the Issuing Lender hereunder
 to the Participants are only those expressly set forth in this Credit
 Agreement and that the Issuing Lender shall be entitled to assume that the conditions precedent set forth in Section
 5.2 have been satisfied unless it
 shall have acquired actual knowledge that any such condition precedent has
 not been satisfied; provided, however, that nothing set forth
 in this Section 2.3 shall be deemed
 to prejudice the right of any Participant to recover from the Issuing Lender any amounts made
 available by such Participant to the Issuing Lender pursuant to this
 Section 2.3 in the event that it is determined by a court of competent jurisdiction that the payment with respect to a
 Letter of Credit constituted gross
 negligence or willful misconduct on the part of the Issuing Lender.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii) The
 Issuing Lender shall be under no obligation to issue any Letter of Credit if (a) any order, judgment or decree
 of any Governmental Authority or arbitrator shall by its terms purport
 to enjoin or restrain the Issuing Lender from issuing such Letter of Credit, (b) any Requirement of Law applicable
 to the Issuing Lender or any
 request or directive (whether or not having the force of law) from any Governmental Authority with
 jurisdiction over the Issuing Lender shall prohibit, or request that
 the Issuing Lender refrain from, the issuance of letters of credit generally or such Letter of Credit in
 particular or shall impose upon the Issuing Lender with respect to such
 Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Lender is not otherwise
 compensated hereunder) not in effect
 on the Closing Date, or shall impose upon the Issuing Lender any
 unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the Issuing Lender in
 good faith deems material to it, or (c)
 the issuance of such Letter of Credit would violate one or more policies of
 the Issuing Lender.

 
	
  

 	
  

 	
  

 
	
  

 	
           (i) Conflict with LOC Documents. In the event of any conflict between this Credit Agreement and any LOC Document, this
 Credit Agreement shall govern.

 
	
  

 	
  

 	
  

 
	
  

 	
           (j)
 Indemnification of Issuing Lender.

 

39

	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 	
           (i)
 In addition to its other obligations under this Credit Agreement, the
 Borrower hereby agrees to protect, indemnify, pay and save the Issuing Lender
 harmless from and against any and all
 claims, demands, liabilities, damages, losses, costs, charges and expenses (including Attorney Costs) that the
 Issuing Lender may incur or be
 subject to as a consequence, direct or indirect, of (A) the issuance of any Letter of Credit or (B) the
 failure of the Issuing Lender to honor a drawing under a Letter of Credit as a result of any act or omission, whether
 rightful or wrongful, of any present or future de jure or de facto
 Governmental Authority (all such acts or
 omissions, herein called “Government Acts”).

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii) As between the Borrower and the Issuing Lender,
 the Borrower shall assume all risks
 of the acts, omissions or misuse of any Letter of Credit by the
 beneficiary thereof. The Issuing Lender shall not be responsible for (except
 in the case of (A), (B) and (C) below if
 the Issuing Lender has actual knowledge to the contrary): (A) the form,
 validity, sufficiency, accuracy, genuineness or legal effect of any
 document submitted by any party in connection with the application for and
 issuance of any Letter of Credit, even if it should in fact prove to be in
 any or all respects invalid, insufficient,
 inaccurate, fraudulent or forged; (B) the validity or sufficiency of any instrument transferring or assigning or
 purporting to transfer or assign any
 Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, that may
 prove to be invalid or ineffective for any reason; (C) failure of the
 beneficiary of a Letter of Credit to comply fully with conditions required in order to draw upon a Letter of Credit; (D)
 errors, omissions, interruptions
 or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise,
 whether or not they be in cipher; (E)
 any loss or delay in the transmission or otherwise of any document required
 in order to make a drawing under a
 Letter of Credit or of the proceeds thereof; and (F) any
 consequences arising from causes beyond the control of the Issuing Lender, including, without limitation, any
 Government Acts. None of the above shall
 affect, impair, or prevent the vesting of the Issuing Lender’s rights or
 powers hereunder.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii) In furtherance and extension and not in
 limitation of the specific provisions hereinabove set forth, any action taken
 or omitted by the Issuing Lender,
 under or in connection with any Letter of Credit or the related certificates,
 if taken or omitted in good faith,
 shall not put the Issuing Lender under any resulting liability to the Borrower or any other Credit Party. It is
 the intention of the parties that
 this Credit Agreement shall be construed and applied to protect and indemnify the Issuing Lender against any and
 all risks involved in the issuance
 of the Letters of Credit, all of which risks are hereby assumed by the Borrower, including, without limitation, any and
 all risks of the acts or omissions, whether
 rightful or wrongful, of any present or future Government Acts. The Issuing Lender shall not, in any way, be liable
 for any failure by the Issuing Lender or anyone else to pay any
 drawing under any Letter of Credit as a result of any Government Acts or any other cause beyond the control of the
 Issuing Lender.

 

40

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv)
 Nothing in this subsection (j) is intended to limit the reimbursement obligation of the Borrower
 contained in this Section 2.3. The obligations
 of the Borrower under this subsection (j) shall survive the termination of this Credit Agreement. No act or omission of
 any current or prior beneficiary of
 a Letter of Credit shall in any way affect or impair the rights of the
 Issuing Lender to enforce any right, power or benefit under this
 Credit Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (v) Notwithstanding anything to the contrary
 contained in this subsection (j),
 the Borrower shall have no obligation to indemnify the Issuing Lender
 in respect of any liability incurred by the Issuing Lender arising out of the
 gross negligence or willful misconduct of the Issuing Lender, as determined
 by a court of competent jurisdiction.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
           (k)
 Designation of other Persons as Account
 Parties. Notwithstanding anything
 to the contrary set forth in this Credit Agreement, including without
 limitation Section 2.3(a) hereof, a Letter of Credit issued hereunder may
 contain a statement to the effect that
 such Letter of Credit is issued for the account of a Subsidiary of the
 Borrower; provided that notwithstanding such statement, the
 Borrower shall be the actual account party
 for all purposes of this Credit Agreement for such Letter of Credit and such statement shall not affect the Borrower’s
 reimbursement obligations hereunder with respect to such Letter of
 Credit.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 2.4 Swing Line Loans Subfacility.

 
	
  

 	
  

 	
  

 
	
  

 	
           (a) Swing
 Line Loans. The Swing Line Lender hereby agrees, on the terms and
 subject to the conditions set forth herein and in the other Credit Documents,
 to make loans (each a “Swing Line Loan”
 and collectively, the “Swing Line Loans”) to the Borrower, in Dollars, at any time and from time
 to time, during the period from and including
 the Closing Date to but not including the Maturity Date (or such earlier date
 if the Commitments have been terminated
 as provided herein); provided that, after giving effect to the issuance of any such Swing Line
 Loan, (i) the aggregate principal amount of the Swing Line Loans outstanding at any one time shall not exceed the
 Swing Line Committed Amount and (ii) the sum of (A) the aggregate
 amount of Swing Line Loans outstanding, plus
 (B) the aggregate amount of the Dollar Equivalent of Revolving Loans outstanding, plus (C) the aggregate
 amount of LOC Obligations outstanding, plus (D) the aggregate amount of outstanding Competitive Bid
 Loans shall not exceed the Revolving Committed
 Amount. Subject to the terms of this Credit Agreement, the Borrower may borrow, repay and reborrow Swing Line Loans.

 
	
  

 	
  

 	
  

 
	
  

 	
           (b) Method
 of Borrowing and Funding Swing Line Loans. By no later than 1:00 p.m. on the date of the requested borrowing
 of Swing Line Loans, the Borrower shall provide telephone notice to
 the Swing Line Lender, followed promptly by a written Swing Line Loan Request in the form of Exhibit 2.4(b) (which
 may be submitted by telecopy)
 setting forth (i) the amount of the requested Swing Line Loan and (ii) the
 date of the requested Swing Line
 Loan and complying in all respects with Section 5.2. The Swing Line
 Lender shall initiate the transfer of funds representing the Swing Line Loan advance to the Borrower by 3:00 p.m. on the
 Business Day of the requested borrowing.

 

41

	
  

 	
  

 
	
  

 	
           (c)
 Repayment and Participations of Swing Line Loans. The Borrower agrees
 to repay all Swing Line Loans immediately upon the existence of a Default or
 Event of Default or otherwise within three Business Days of demand therefor
 by the Swing Line Lender. Each repayment of
 a Swing Line Loan may be accomplished by requesting Revolving Loans which request is not subject to
 the conditions set forth in Section 5.2. In the event that the Borrower shall fail to timely repay any Swing
 Line Loan, and in any event upon (i)
 a request by the Swing Line Lender, (ii) the occurrence of an Event of Default
 described in Section 9.1(f) or (iii) the acceleration of any Loan or
 termination of any Commitment pursuant to
 Section 9.2, each Lender shall irrevocably and unconditionally purchase from the Swing Line Lender, without recourse
 or warranty, an undivided interest and participation in such Swing
 Line Loan in an amount equal to such other
 Lender’s Revolving Loan Commitment Percentage thereof, by directly purchasing
 a participation in such Swing Line
 Loan in such amount (regardless of whether the conditions precedent thereto set forth in Section 5.2 are then satisfied,
 whether or not the Borrower has submitted a Notice of Borrowing and
 whether or not the Commitments are then in
 effect, any Event of Default exists or all the Loans have been accelerated)
 and paying the proceeds thereof to
 the Swing Line Lender at the Agency Services Address, or at such other address as the Swing Line Lender
 may designate, in Dollars and in immediately
 available funds. If such amount is not in fact made available to the Swing Line
 Lender by any Participant, the Swing Line Lender shall be entitled to recover
 such amount on demand from such Participant, together with accrued interest
 thereon for each day from the date of
 demand thereof, at a rate equal to, if paid within two Business Days of such
 date, the Federal Funds Rate, and thereafter at a rate equal to the Base Rate
 plus two percent (2%) per annum. If
 such Participant does not pay such amount forthwith upon the Swing Line Lender’s demand therefor,
 and until such time as such Participant makes the required payment, the Swing Line Lender shall be deemed to
 continue to have outstanding Swing
 Line Loans in the amount of such unpaid participation obligation for all purposes of the Credit Documents other than
 those provisions requiring the other Participants
 to purchase a participation therein. Further, such Participant shall be
 deemed to have assigned any and all
 payments made of principal and interest on its Loans, and any other amounts due to it hereunder to the
 Swing Line Lender to fund Swing Line Loans
 in the amount of the participation in Swing Line Loans that such Participant
 failed to purchase pursuant to this
 Section 2.4(c) until such amount has been purchased (as a result of
 such assignment or otherwise).

 
	
  

 	
  

 
	
  

 	
           (d)
 Swing Line Loan Note. The Swing Line Loans made by the Swing Line
 Lender shall, if requested by the Swing Line Lender, be evidenced by a duly
 executed promissory note of the Borrower to the Swing Line Lender in
 substantially the form of Exhibit 2.4(d).

 
	
  

 	
  

 
	
  

 	
  

 	
 2.5 Competitive
 Bid Loans Subfacility.

 
	
  

 	
  

 	
  

 
	
  

 	
           (a)
 Competitive Bid Loans. Subject to the terms and conditions set forth herein, the Borrower may, from time to time,
 during the period from the Closing Date to the Maturity Date, request, and each Lender may, in its sole
 discretion, agree to make loans to
 the Borrower in accordance with the terms of this Section 2.5 (each a “Competitive Bid Loan” and collectively
 the “Competitive Bid Loans”); provided,

 

42

	
  

 	
  

 	
  

 
	
  

 	
 however,
 that (i) the sum of (A) the aggregate amount of the Dollar Equivalent of Revolving Loans outstanding, plus (B) the
 aggregate amount of Competitive Bid Loans outstanding, plus (C) the aggregate amount of Swing Line Loans
 outstanding, plus (D) the aggregate
 amount of LOC Obligations outstanding shall not exceed the Revolving Loan Commitment, (ii) the aggregate amount of
 Competitive Bid Loans outstanding at any one time cannot exceed $500,000,000, (iii) all Competitive Bid Loans shall
 be denominated in Dollars and (iv)
 if a Lender does make a Competitive Bid Loan it shall not reduce such Lender’s
 obligation to make its pro rata share of any Revolving Loan.

 
	
  

 	
  

 	
  

 
	
  

 	
           (b) Competitive
 Bid Requests. The Borrower may solicit Competitive Bids by delivery of a Competitive Bid Request to the
 Administrative Agent by 11:00 a.m. on a Business Day not less than one or more than five Business Days prior
 to the date of the requested
 Competitive Bid Loan. A Competitive Bid Request must be substantially in the form of Exhibit 2.5(b) and shall
 specify (i) the date of the requested Competitive Bid Loan (which
 shall be a Business Day), (ii) the amount of the requested Competitive Bid Loan and (iii) the applicable Interest Period or
 Interest Periods requested and be accompanied
 by the Competitive Bid Fee. The Administrative Agent shall notify the Lenders
 of its receipt of a Competitive Bid Request and the contents thereof and
 invite the Lenders to submit
 Competitive Bids in response thereto. The Borrower may not request a Competitive Bid for more than four
 different Interest Periods per Competitive Bid Request and Competitive Bid Requests may be made no more
 frequently than six times every calendar month.

 
	
  

 	
  

 	
  

 
	
  

 	
           (c) Competitive Bid Procedure. Each Lender may, in its sole discretion, make one or more Competitive Bids to the Borrower in
 response to a Competitive Bid Request. Each Competitive Bid must be received by the Administrative Agent not
 later than 11:00 a.m. on the
 proposed date of the requested Competitive Bid Loan; provided, however, that should the Administrative Agent, in its capacity as a Lender,
 desire to submit a Competitive Bid
 it shall notify the Borrower of its Competitive Bid and the terms thereof not later than 15 minutes prior
 to the time the other Lenders are required to submit their Competitive
 Bid. A Lender may offer to make all or part of the requested Competitive Bid Loan and may submit multiple
 Competitive Bids in response to a Competitive Bid Request. Any
 Competitive Bid must specify (i) the particular Competitive Bid Request as to which the Competitive Bid is submitted,
 (ii) the minimum (which shall be
 not less than $10,000,000 and integral multiples of $1,000,000 in excess thereof) and maximum principal amounts of the
 requested Competitive Bid Loan or Loans
 as to which the Lender is willing to make and (iii) the applicable interest
 rate or rates and Interest Period or Interest Periods therefor. A
 Competitive Bid submitted by a Lender in
 accordance with the provisions hereof shall be irrevocable. The
 Administrative Agent shall promptly
 notify the Borrower of all Competitive Bids made and the terms thereof. The Administrative Agent shall send a
 copy of each of the Competitive Bids to the Borrower and each of the Lenders for its records as soon as
 practicable.

 
	
  

 	
  

 	
  

 
	
  

 	
           (d) Acceptance
 of Competitive Bids. The Borrower may, in its sole discretion, subject only to the provisions of
 this subsection (d), accept or refuse any Competitive Bid offered to it. To accept a Competitive Bid, the
 Borrower shall give oral notification of its acceptance of any or all
 such Competitive Bids (which shall be

 

43

	
  

 	
  

 	
  

 
	
  

 	
 promptly confirmed in writing) to the Administrative Agent by 12:00
 noon on the proposed date of
 the Competitive Bid Loan; provided, however, (i) the failure by the Borrower to give timely
 notice of its acceptance of a Competitive Bid shall be deemed to be a refusal thereof, (ii) to the extent
 Competitive Bids are for comparable Interest Periods, the Borrower may accept
 Competitive Bids only in ascending order of rates, (iii) the aggregate
 amount of Competitive Bids accepted by the Borrower shall not exceed the principal amount specified in the
 Competitive Bid Request, (iv) if the Borrower shall accept a bid or bids made at a particular
 Competitive Bid Rate, but the amount of such bid or bids shall cause the total amount of bids to be accepted by the
 Borrower to be in excess of the amount specified in the Competitive
 Bid Request, then the Borrower shall accept
 a portion of such bid or bids in an amount equal to the amount specified in
 the Competitive Bid Request less the
 amount of all other Competitive Bids accepted with respect to such Competitive Bid Request, which
 acceptance in the case of multiple bids at such Competitive Bid Rate, shall
 be made pro rata in accordance with the amount of each such bid at
 such Competitive Bid Rate and (v) no bid shall be accepted for a Competitive Bid Loan unless such Competitive Bid Loan is in a
 minimum principal amount of $10,000,000 and integral multiples of
 $1,000,000 in excess thereof, except that where a portion of a Competitive Bid is accepted in accordance with the
 provisions of clause (iv) of subsection (d) hereof, then in a minimum
 principal amount of $500,000 and integral multiples
 of $100,000 (but not in any event less than the minimum amount specified in the Competitive Bid), and in calculating the pro
 rata allocation of acceptances of portions of multiple bids at a
 particular Competitive Bid Rate pursuant to clause (iv) of subsection (d) hereof, the amounts shall be
 rounded to integral multiples of $100,000 in a manner which shall be in the discretion of the Borrower. A notice of
 acceptance of a Competitive Bid
 given by the Borrower in accordance with the provisions hereof shall be irrevocable. The Administrative Agent shall, not
 later than 1:00 p.m. on the proposed date
 of such Competitive Bid Loan, notify each bidding Lender whether or not its Competitive Bid has been accepted (and if so, in
 what amount and at what Competitive Bid
 Rate), and each successful bidder will thereupon become bound, subject to the
 other applicable conditions hereof,
 to make the Competitive Bid Loan in respect of which its bid has been
 accepted.

 
	
  

 	
  

 	
  

 
	
  

 	
           (e)
 Funding of Competitive Bid Loans. Each Lender which is to make
 a Competitive Bid Loan shall make
 its Competitive Bid Loan available to the Administrative Agent by 2:00 p.m. on the date specified in the
 Competitive Bid Request by deposit
 of immediately available funds at the Agency Services Address or at such other
 address as the Administrative Agent may designate in writing. The
 Administrative Agent will, upon receipt,
 make the proceeds of such Competitive Bid Loans available to the
 Borrower.

 
	
  

 	
  

 	
  

 
	
  

 	
           (f)
 Maturity of Competitive Bid Loans. Each Competitive Bid Loan shall mature and be due and payable
 in full on the last day of the Interest Period applicable thereto. Unless the
 Borrower shall give notice to the Administrative Agent otherwise (or repays such Competitive Bid Loan), or a Default
 or Event of Default exists and is continuing,
 the Borrower shall be deemed to have requested Revolving Loans from all of the
 Lenders (in the amount of the maturing Competitive Bid Loan and accruing
 interest at the Base Rate), the proceeds
 of which will be used to repay such Competitive Bid Loan.

 

44

	
  

 	
  

 
	
  

 	
           (g)
 Competitive
 Bid Loan Notes. The
 Competitive Bid Loans made by each Lender shall be evidenced by a duly
 executed promissory note of the Borrower to each Lender that requests a
 Competitive Bid Loan Note in substantially the form of Exhibit 2.5(g).

 
	
  

 	
  

 
	
  

 	
           2.6 [Intentionally Omitted].

 
	
  

 	
  

 
	
  

 	
           2.7
 Continuations
 and Conversions.

 

          Subject to the
terms below, the Borrower shall have the option, on any Business Day, to
continue existing Eurocurrency Rate Loans for a subsequent Interest Period, to
convert Base Rate Loans into Eurocurrency Rate Loans or to convert Eurocurrency
Rate Loans into Base Rate Loans. By no later than 11:00 a.m. (a) on
the date of the requested conversion of a Eurocurrency Rate Loan denominated in
Dollars to a Base Rate Loan or (b) three Business Days prior to the date of the
requested continuation of a Eurocurrency Rate Loan denominated in Dollars or
conversion of a Base Rate Loan to a Eurocurrency Rate Loan denominated in
Dollars or (c) four Business Days (or five Business Days in the case of a
Special Notice Currency) prior to the date of the requested continuation of a
Eurocurrency Rate Loan denominated in Alternative Currencies, the Borrower
shall provide telephonic notice to the Administrative Agent, followed promptly
by a written Notice of Continuation/Conversion, in the form of Exhibit 2.7 setting forth (i)
whether the Borrower wishes to continue or convert such Loans and (ii) if the
request is to continue a Eurocurrency Rate Loan or convert a Base Rate Loan to
a Eurocurrency Rate Loan, the Interest Period applicable thereto.
Notwithstanding anything herein to the contrary, (A) except as provided in
Section 3.11, Eurocurrency Rate Loans may only be continued or converted into
Base Rate Loans on the last day of the Interest Period applicable thereto, (B)
Eurocurrency Rate Loans may not be continued nor may Base Rate Loans be
converted into Eurocurrency Rate Loans during the existence and continuation of
a Default or an Event of Default, (C) any request to continue a Eurocurrency
Rate Loan that fails to comply with the terms hereof or any failure to request
a continuation of a Eurocurrency Rate Loan at the end of an Interest Period
shall constitute a conversion to a Base Rate Loan on the last day of the applicable
Interest Period provided, however, that in the case of
a failure to timely request a continuation of Eurocurrency Rate Loans
denominated in an Alternative Currency, such Loans shall be continued as
Eurocurrency Rate Loans in their original currency with an Interest Period of
one month, and (D) any failure to state the Interest Period with respect to the
continuation of a Eurocurrency Rate Loan or
the conversion of a Base Rate Loan to a Eurocurrency Rate Loan shall
constitute a request for a one month Interest Period. No Revolving Loans may be
converted into or continued as a Revolving Loan denominated in a different
currency, but instead must be prepaid in the original currency of such
Revolving Loan and reborrowed in the other currency. It is understood and
agreed that Competitive Bid Loans and Swing Line Loans may not be continued or
converted. 

	
  

 	
  

 
	
  

 	
 2.8 Minimum Amounts.

 

          Each
request for a borrowing, conversion or continuation shall be subject to the
requirements that (a) each Eurocurrency Rate Loan and each Competitive Bid Loan
shall be in a minimum amount of $10,000,000 and in integral multiples of
$1,000,000 in excess thereof, (b) each Base Rate Loan shall be in a minimum
amount of the lesser of $5,000,000 (and in integral multiples of $1,000,000 in
excess thereof) or the remaining amount available under the Revolving Committed

45

Amount, (c)
each Swing Line Loan shall be in a minimum amount of the lesser of $1,000,000
(and in integral multiples of $100,000 in excess thereof) or the remaining
amount available under the Swing Line Committed Amount and (d) no more than ten
Eurocurrency Rate Loans shall be outstanding hereunder at any one time. For the
purposes of this Section 2.8, all Eurocurrency Rate Loans with the same
Interest Periods that begin and end on the same date shall be considered as one
Eurocurrency Rate Loan, but Eurocurrency Rate Loans with different Interest
Periods, even if they begin on the same date, shall be considered as separate
Eurocurrency Rate Loans. 

SECTION 3

GENERAL PROVISIONS APPLICABLE 

TO LOANS AND LETTERS OF CREDIT

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.1 Interest.

 
	
  

 	
  

 	
  

 
	
  

 	
           (a)
 Interest Rate. Subject to Section 3.1(b), (i) all Base Rate Loans
 shall accrue interest at the Base Rate, (ii) all Eurocurrency Rate Loans
 shall accrue interest at the Eurocurrency Rate plus the Applicable Percentage
 plus (in the case of a Eurocurrency Rate Loan of any Lender which is lent
 from a Lending Office in the United Kingdom or a Participating Member State)
 the Mandatory Cost, (iii) all Swing Line Loans shall accrue interest at the
 Base Rate and (iv) all Competitive Bid Loans shall accrue interest at the
 applicable Competitive Bid Rate with respect to each Competitive Bid Loan. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (b)
 Default Rate of Interest. Upon the occurrence, and during the
 continuation, of an Event of Default pursuant to Section 9.1(a) and (k), the
 principal of and, to the extent permitted by law, interest on the Loans and
 any other amounts owing hereunder or under the other Credit Documents
 (including without limitation fees and expenses) shall bear interest, payable
 on demand, at a per annum rate equal to 2% plus the rate which would
 otherwise be applicable (or if no rate is applicable, then the Base Rate plus
 two percent (2%) per annum). 

 
	
  

 	
  

 	
  

 
	
  

 	
           (c)
 Interest Payments. Except as set forth in clause (b) above, interest
 on Loans shall be due and payable in arrears on each Interest Payment Date. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 3.2 Place
 and Manner of Payments. 

 

          All
payments to be made by the Borrower shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff. Except as
otherwise expressly provided herein and except with respect to principal of and
interest on Loans denominated in an Alternative Currency, all payments by the
Borrower hereunder shall be made to the Administrative Agent, for the account
of the respective Lenders to which such payment is owed, at the applicable
Agency Services Address in Dollars and in Same Day Funds not later than 2:00
p.m. on the date specified herein. Except as otherwise expressly provided
herein, all payments by the Borrower hereunder with respect to principal and
interest on Loans denominated in an Alternative Currency shall be made to the
Administrative Agent, for the account of the respective Lenders to which such
payment is owed, at the applicable Agency Services Address in such Alternative
Currency and in Same Day Funds not later than the Applicable Time specified by
the Administrative Agent on the dates 

46

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 Alternative Currency, such Borrower
shall make such payment in Dollars in the Dollar Equivalent of the Alternative
Currency payment amount. The Administrative Agent will promptly distribute to
each Lender its pro rata share of such payment (based upon the applicable Commitments
of the Lenders) in like funds as received by wire transfer to such Lender’s
Lending Office. All payments received by the Administrative Agent (i) after
2:00 p.m., in the case of payments in Dollars, or (ii) after the Applicable
Time specified by the Administrative Agent in the case of payments in an
Alternative Currency, shall in each case be deemed received on the next
succeeding Business Day and any applicable interest or fee shall continue to
accrue. If any payment to be made by 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. 

	
  

 	
  

 
	
  

 	
           3.3
 Prepayments.

 
	
  

 	
  

 
	
  

 	
           (a)
 Voluntary Prepayments. The Borrower shall have the right to
 prepay Loans in whole or in part from time to time without premium or
 penalty; provided, however, that (i) (A)
 Eurocurrency Rate Loans denominated in Dollars may only be prepaid on three
 Business Days’ prior written notice to the Administrative Agent, (B)
 Eurocurrency Rate Loans denominated in Alternative Currencies may only be
 prepaid on four Business Days’ prior written notice to the Administrative
 Agent, (C) Eurocurrency Rate Loans denominated in Special Notice Currencies
 may only be prepaid on five Business Days’ prior written notice to the
 Administrative Agent and (D) Base Rate Loans may be prepaid on same-day prior
 written notice to the Administrative Agent, (ii) each such partial prepayment
 of Eurocurrency Rate Loans or Base Rate Loans shall be in the minimum
 principal amount of $5,000,000 and integral multiples of $1,000,000, (iii)
 each such partial prepayment of Swing Line Loans shall be in the minimum
 principal amount of $1,000,000 and integral multiples of $100,000 and (iv)
 Competitive Bid Loans may not be prepaid unless a breakage fee equal to the
 amount of damages suffered by the Lender (other than loss of anticipated
 profits) whose Competitive Bid Loan is prepaid is paid to such Lender (as determined
 by such Lender in its reasonable discretion). Amounts prepaid pursuant to
 this Section 3.3(a) shall be applied as the Borrower may elect; however, if the Borrower fails to
 specify, such prepayment will be applied in the manner set forth in Section
 3.3(d) below. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Mandatory Prepayments. If at any time (i) the sum of the
 aggregate amount of the Dollar Equivalent of outstanding Revolving Loans plus
 the aggregate amount of outstanding LOC Obligations plus the aggregate amount
 of outstanding Competitive Bid Loans plus the aggregate amount of outstanding
 Swing Line Loans exceeds the Revolving Committed Amount, (ii) the aggregate
 amount of outstanding Swing Line Loans exceeds the Swing Line Committed
 Amount, (iii) the aggregate amount of outstanding LOC Obligations exceeds the
 LOC Committed Amount or (iv) the amount of outstanding Competitive Bid Loans
 exceeds $500,000,000, the Borrower shall immediately make a principal payment
 to the Administrative Agent (or with respect to LOC Obligations an amount to
 be held as cash collateral) in a manner and in an

 

47

	
  

 	
  

 
	
  

 	
 amount
 necessary to be in compliance with Sections 2.1, 2.2, 2.3, 2.4 and 2.5, as
 applicable and as directed by the Administrative Agent (any such prepayment
 with respect to clause (i) above to be applied as set forth in Section 3.3(c)
 below). 

 
	
  

 	
  

 
	
  

 	
           (c)
 Scheduled Repayment of Term Loans. Commencing on the last day of the
 first full fiscal quarter following the Closing Date, the Borrower shall
 repay the aggregate outstanding principal amount of all Term Loans, in equal
 quarterly installments, in each of the relevant one-year periods (each an “Annual
 Period”) following the Closing Date set forth in the grid below in an
 amount equal to the product of (i) the percentage set forth opposite such
 Annual Period in the grid below (the “Repayment Percentage”) and (ii)
 the Term Loan Committed Amount: 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Annual
 Period

 	
  

 	
 Repayment Percentage

 of Term Loan

 Committed Amount

 	
  

 
	

 

 	
  

 	

 

 	

 

 	
  

 
	
 First Year

 	
  

 	
 5

 	
 %

 	
  

 
	
 Second Year

 	
  

 	
 5

 	
 %

 	
  

 
	
 Third Year

 	
  

 	
 10

 	
 %

 	
  

 
	
 Fourth Year

 	
  

 	
 10

 	
 %

 	
  

 
	
 Fifth Year

 	
  

 	
 70

 	
 %

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 
	
  

 	
           (d)
 Application of Prepayments. All amounts paid pursuant to Sections
 3.3(a) and 3.3(b)(i), if the Borrower has not otherwise elected an
 application of such amounts as contemplated in Section 3.3(a), shall be
 applied first to Term Loans (with the amount of such prepayment of the
 Term Loans being applied to the remaining Term Loan amortization payments,
 pro rata in accordance with the amount of each such remaining Term Loan
 amortization payment), second, once all Term Loans have been repaid in
 full, to Swing Line Loans, third, to Revolving Loans (first to Base
 Rate Loans and then to Eurocurrency Rate Loans in direct order of Interest
 Period Maturities), fourth, pro rata, to Competitive Bid Loans and fifth
 to a cash collateral account in respect of LOC Obligations. All prepayments
 under this Section 3.3 shall be subject to Section 3.14. 

 
	
  

 	
  

 
	
  

 	
           3.4
 Fees. 

 
	
  

 	
  

 
	
  

 	
           (a)
 Facility Fees. In consideration of the commitments under the Revolving
 Credit Facility being made available by the Lenders hereunder, the Borrower
 agrees to pay to the Administrative Agent a per annum fee (the “Facility
 Fee”) for the pro rata benefit of each Lender (based upon such Lender’s
 pro rata committed portion of the Revolving Committed Amount), which Facility
 Fee shall be calculated by multiplying, at any time of determination, the
 Applicable Percentage then in effect for the Facility Fee, by the daily
 average amount of the Revolving Committed Amount (whether or not drawn 

 

48

	
  

 	
  

 	
  

 
	
  

 	
 or available to be drawn)
 during the fiscal quarter or other relevant period for which such Facility
 Fee is being calculated. The Facility Fee shall accrue from the Closing Date
 and shall be due and payable in arrears on the last day of each fiscal
 quarter of the Borrower for such fiscal quarter, or period ended thereon, and
 on the Maturity Date, with the first such payment to be made on the last day
 of the first full fiscal quarter following the Closing Date. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Letter of Credit
 Fees. 

 
	
  

 	
  

 
	
  

 	
  

 	
           (i)
 Letter of Credit Fees. In consideration of the issuance of Letters of Credit hereunder, the
 Borrower agrees to pay to the Issuing Lender, for the pro rata benefit of
 each Lender (based on each Lender’s Revolving Loan Commitment Percentage), a
 per annum fee (the “Letter
 of Credit Fees”) for each
 standby Letter of Credit equal to the Applicable Percentage for Standby
 Letter of Credit Fees on the average daily maximum amount available to be
 drawn under each such Letter of Credit (whether or not such maximum amount is
 then in effect under such Letter of Credit) from the date of issuance to the
 date of expiration. The Letter of Credit Fees will be payable in arrears on
 the last day of each fiscal quarter of the Borrower for such fiscal quarter,
 or period ended thereon, and on the Maturity Date, with the first such
 payment to be made on the last day of the first full fiscal quarter following
 the Closing Date.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 Issuing Lender Fees. In addition to the Letter of Credit Fees payable pursuant to
 subsection (i) above, the Borrower shall pay to the Issuing Lender for its
 own account, without sharing by the other Lenders, (A) the customary,
 incidental and/or out of pocket charges from time to time to the Issuing Lender
 for its services in connection with the issuance, amendment, payment,
 transfer, administration, cancellation and conversion of, and drawings under,
 Letters of Credit and (B) with respect to each standby Letter of Credit, a
 standby letter of credit fronting fee of .125% per annum of the face amount
 of each Letter of Credit payable quarterly on the tenth day following each
 fiscal quarter of the Borrower and on the Maturity Date (collectively, the “Issuing Lender Fees”). 

 
	
  

 	
  

 	
  

 
	
  

 	
           (c)
 Administrative Fees. The Borrower agrees to pay to the Administrative Agent, for its own
 account, an annual fee as agreed to between the Borrower and the
 Administrative Agent as set forth in the Fee Letter. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (d)
 Ticking Fee. If the Closing Date has not occurred on or before the 90th
 day following the date hereof, the Borrower agrees to pay to the
 Administrative Agent a per annum fee for the pro rata benefit of each Lender
 (based upon such Lender’s pro rata portion of the Term Loan Committed Amount
 and the Revolving Committed Amount). Such fee shall begin to accrue on the 91st
 day following the date hereof (if the Closing Date shall not have occurred
 prior to such date) and shall be calculated by multiplying, at any time of
 determination, .08% by the aggregate amount of the Term Loan
 Committed Amount and the Revolving Committed Amount. If the Closing Date has
 not occurred on

 

49

	
  

 	
  

 
	
  

 	
 or before the 90th
 day following the date hereof, such fee shall be payable on the earlier of
 (i) the Closing Date and (ii) the Termination Date. 

 
	
  

 	
  

 
	
  

 	
           3.5
 Payment in full at Maturity.

 

          On
the Maturity Date, the entire outstanding principal balance of all Loans and
all LOC Obligations, together with accrued but unpaid interest and all other
sums owing with respect thereto, shall be due and payable in full, unless
accelerated sooner pursuant to Section 9. 

	
  

 	
  

 
	
  

 	
           3.6
 Computations of Interest and Fees.

 
	
  

 	
  

 
	
  

 	
           (a)
 Except for Base Rate Loans and Swing Line Loans that are based upon the Prime
 Rate, in which case interest shall be computed on the basis of the actual
 number of days elapsed over a year of 365 or 366 days, as the case may be,
 all computations of interest and fees hereunder shall be made on the basis of
 the actual number of days elapsed over a year of 360 days, or, in the case of
 interest in respect of Loans denominated in Alternative Currencies as to
 which market practice differs from the foregoing, in accordance with such
 market practice. Interest shall accrue from and include the date of borrowing
 (or continuation or conversion) but exclude the date of payment. 

 
	
  

 	
  

 
	
  

 	
           (b)
 It is the intent of the Lenders and the Credit Parties to conform to and
 contract in strict compliance with applicable usury law from time to time in
 effect. All agreements between the Lenders and the Credit Parties are hereby
 limited by the provisions of this paragraph which shall override and control
 all such agreements, whether now existing or hereafter arising and whether
 written or oral. In no way, nor in any event or contingency (including but
 not limited to prepayment or acceleration of the maturity of any obligation),
 shall the interest taken, reserved, contracted for, charged, or received
 under this Credit Agreement, under the Notes or otherwise, exceed the maximum
 nonusurious amount permissible under applicable law. If, from any possible
 construction of any of the Credit Documents or any other document, interest
 would otherwise be payable in excess of the maximum nonusurious amount, any
 such construction shall be subject to the provisions of this paragraph and
 such documents shall be automatically reduced to the maximum nonusurious
 amount permitted under applicable law, without the necessity of execution of
 any amendment or new document. If any Lender shall ever receive anything of
 value which is characterized as interest on the Loans under applicable law
 and which would, apart from this provision, be in excess of the maximum
 nonusurious amount, an amount equal to the amount which would have been
 excessive interest shall, without penalty, be applied to the reduction of the
 principal amount owing on the Loans and not to the payment of interest, or
 refunded to the Borrower or the other payor thereof if and to the extent such
 amount which would have been excessive exceeds such unpaid principal amount
 of the Loans. The right to demand payment of the Loans or any other
 Indebtedness evidenced by any of the Credit Documents does not include the
 right to accelerate the payment of any interest which has not otherwise
 accrued on the date of such demand, and the Lenders do not intend to charge
 or receive any unearned interest in the event of such demand. All interest
 paid or agreed to be paid to the Lenders with respect to the Loans shall, to
 the extent permitted 

 

50

	
  

 	
  

 
	
  

 	
 by
 applicable law, be amortized, prorated, allocated, and spread throughout the
 full stated term (including any renewal or extension) of the Loans so that
 the amount of interest on account of such Indebtedness does not exceed the
 maximum nonusurious amount permitted by applicable law. 

 
	
  

 	
  

 
	
  

 	
           3.7 Pro Rata Treatment. 

 
	
  

 	
  

 
	
  

 	
 Except to
 the extent otherwise provided herein: 

 
	
  

 	
  

 
	
  

 	
           (a)
 Revolving Loans. Each Revolving Loan borrowing (including, without
 limitation, each Mandatory Borrowing), each payment or prepayment of
 principal of any Revolving Loan, each payment of fees (other than the Issuing
 Lender Fees retained by the Issuing Lender for its own account and the
 Administrative Fees retained by the Administrative Agent for its own account),
 each reduction of the Revolving Committed Amount, and each conversion or
 continuation of any Revolving Loan, shall (except as otherwise provided in
 Section 3.11) be allocated pro rata among the relevant Lenders in accordance
 with the respective Revolving Loan Commitment Percentages of such Lenders, as
 applicable, (or, if the Commitments of such Lenders have expired or been
 terminated, in accordance with the respective principal amounts of the
 outstanding Revolving Loans and Participation Interests of such Lenders); provided
 that, if any Lender shall have failed to pay its applicable pro rata share of
 any Revolving Loan, then any amount to which such Lender would otherwise be
 entitled pursuant to this subsection (a) shall instead be payable to the
 Administrative Agent until the share of such Loan not funded by such Lender
 has been repaid; provided further, that in the event any amount
 paid to any Lender pursuant to this subsection (a) is rescinded or must
 otherwise be returned by the Administrative Agent, each Lender shall, upon
 the request of the Administrative Agent, repay to the Administrative Agent
 the amount so paid to such Lender, with interest for the period commencing on
 the date such payment is returned by the Administrative Agent until the date
 the Administrative Agent receives such repayment at a rate per annum equal
 to, during the period to but excluding the date two Business Days after such
 request, the Federal Funds Rate, and thereafter, the Base Rate plus two
 percent (2%) per annum; and 

 
	
  

 	
  

 
	
  

 	
           (b)
 Letters of Credit. Each payment of unreimbursed drawings in respect of
 LOC Obligations shall be allocated to each Participant pro rata in accordance
 with its Revolving Loan Commitment Percentage; provided that, if any
 Participant shall have failed to pay its applicable pro rata share of any
 drawing under any Letter of Credit, then any amount to which such Participant
 would otherwise be entitled pursuant to this subsection (b) shall instead be
 payable to the Issuing Lender until the share of such unreimbursed drawing
 not funded by such Lender has been repaid; provided further,
 that in the event any amount paid to any Participant pursuant to this
 subsection (b) is rescinded or must otherwise be returned by the Issuing
 Lender, each Participant shall, upon the request of the Issuing Lender, repay
 to the Administrative Agent for the account of the Issuing Lender the amount
 so paid to such Participant, with interest for the period commencing on the
 date such payment is returned by the Issuing Lender until the date the
 Issuing Lender receives such repayment at a rate per annum equal to, during
 the period to 

 

51

	
  

 	
  

 
	
  

 	
 but
 excluding the date two Business Days after such request, the Federal Funds
 Rate, and thereafter, the Base Rate plus two percent (2%) per annum. 

 
	
  

 	
  

 
	
  

 	
           (c)
 Swing Line Loans. The Swing Line Lender shall receive, for its own
 account, all payments or prepayments of principal and interest with respect
 to the Swing Line Loans; provided, however, upon the funding of the
 Participants’ participation interests with respect to a Swing Line Loan
 pursuant to Section 2.4(c), such Participants shall be entitled to receive
 their pro rata share of any payment or prepayment of principal and interest
 with respect to such Swing Line Loan. 

 
	
  

 	
  

 
	
  

 	
           3.8
 Sharing of Payments. 

 

          The
Lenders agree among themselves that, except to the extent otherwise provided
herein, in the event that any Lender shall obtain payment in respect of any
Loan, unreimbursed drawing with respect to any LOC Obligations or any other
obligation owing to such Lender under this Credit Agreement through the
exercise of a right of setoff, banker’s lien or counterclaim, or pursuant to a
secured claim under Section 506 of the Bankruptcy Code or other security or
interest arising from, or in lieu of, such secured claim, received by such
Lender under any applicable bankruptcy, insolvency or other similar law or
otherwise, or by any other means, in excess of its pro rata share of such
payment as provided for in this Credit Agreement, such Lender shall promptly
pay in cash or purchase from the other Lenders a participation in such Loans,
LOC Obligations, and other obligations in such amounts, and make such other
adjustments from time to time, as shall be equitable to the end that all
Lenders share such payment in accordance with their respective ratable shares
as provided for in this Credit Agreement. The Lenders further agree among
themselves that if payment to a Lender obtained by such Lender through the
exercise of a right of setoff, banker’s lien, counterclaim or other event as
aforesaid shall be rescinded or must otherwise be restored, each Lender which
shall have shared the benefit of such payment shall, by payment in cash or a
repurchase of a participation theretofore sold, return its share of that
benefit (together with its share of any accrued interest payable with respect
thereto) to each Lender whose payment shall have been rescinded or otherwise
restored. The Borrower agrees that any Lender so purchasing such a participation
may, to the fullest extent permitted by law, exercise all rights of payment,
including setoff, banker’s lien or counterclaim, with respect to such
participation as fully as if such Lender were a holder of such Loan, LOC
Obligation or other obligation in the amount of such participation. Except as
otherwise expressly provided in this Credit Agreement, if any Lender or the
Administrative Agent shall fail to remit to any other Lender an amount payable
by such Lender or the Administrative Agent to such other Lender pursuant to
this Credit Agreement on the date when such amount is due, such payments shall
be made together with interest thereon for each date from the date such amount
is due until the date such amount is paid to the Administrative Agent or such
other Lender at a rate per annum equal to the Federal Funds Rate. If under any
applicable bankruptcy, insolvency or other similar law, any Lender receives a
secured claim in lieu of a setoff to which this Section 3.8 applies, such
Lender shall, to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the rights of the Lenders under this
Section 3.8 to share in the benefits of any recovery on such secured claim. 

52

                    3.9
Capital Adequacy/Regulation D. 

          (a)
If, after the date thereof, any Lender determines that the introduction after
the Closing Date of any law, rule or regulation or other Requirement of Law
regarding capital adequacy or any change therein or in the interpretation
thereof, or compliance by such Lender (or its Lending Office) therewith, has or
would have the effect of reducing the rate of return on the capital or assets
of such Lender or any corporation controlling such Lender as a consequence of
such Lender’s obligations hereunder (taking into consideration its policies
with respect to capital adequacy and such Lender’s desired return on capital),
then from time to time upon demand of such Lender (with a copy of such demand
to the Administrative Agent), the Borrower shall pay to such Lender such
additional amounts as will compensate such Lender for such reduction. 

          (b)
The Borrower shall pay to each Lender, as long as such Lender shall be required
under regulations of the Board of Governors of the Federal Reserve System of
the United States of America to maintain reserves with respect to liabilities
or assets consisting of or including Eurocurrency funds or deposits (currently
known as “Eurocurrency Liabilities”), additional interest on the unpaid principal
amount of each Eurocurrency Rate Loan equal to (i) (A) the applicable
Eurocurrency Rate divided by (B) one minus the Eurocurrency Reserve Percentage minus (ii) the applicable Eurocurrency Rate. Such
additional interest shall be due and payable on each date on which interest is
payable on such Loan; provided the Borrower shall have received at least five days’ prior notice
(with a copy to the Administrative Agent) of such additional interest from such
Lender. If a Lender fails to give notice five days prior to the relevant
Interest Payment Date, such additional interest shall be due and payable five
days from the receipt by the Borrower of such notice. 

                    3.10
Inability
To Determine Interest Rate.

          If
the Administrative Agent determines (which determination shall be conclusive
and binding upon the Borrower) in connection with any request for a
Eurocurrency Rate Loan or a conversion to or continuation thereof that (a)
Dollar deposits are not being offered to banks in the applicable offshore
Dollar market for the applicable amount and Interest Period of such
Eurocurrency Rate Loan, (b) adequate and reasonable means do not exist for
determining the Eurocurrency Rate for such Eurocurrency Rate Loan, or (c) the
Eurocurrency Rate for such Eurocurrency Rate Loan does not adequately and
fairly reflect the cost to the Lenders of funding such Eurocurrency Rate Loan,
the Administrative Agent will promptly notify the Borrower and all the Lenders.
Thereafter, the obligation of the Lenders to make or maintain Eurocurrency Rate
Loans shall be suspended until the Administrative Agent revokes such notice.
Upon receipt of such notice, the Borrower may revoke any pending Notice of
Borrowing or Notice of Continuation/Conversion with respect to Eurocurrency
Rate Loans or, failing that, will be deemed to have converted such request into
a request for a borrowing of or conversion into a Base Rate Loan in the amount
specified therein. 

                    3.11
Illegality.

          If
any Lender determines that any Requirement of Law has made it unlawful, or that
any Governmental Authority has asserted that it is unlawful, for any Lender or
its applicable Lending Office to make, maintain or fund Eurocurrency Rate
Loans, or materially restricts the authority 

53

of such Lender
to purchase or sell, or to take deposits of, Dollars in the applicable offshore
Dollar market, or to determine or charge interest rates based upon the
Eurocurrency Rate, then, on notice thereof by such Lender to the Borrower
through the Administrative Agent, any obligation of such Lender to make or
continue Eurocurrency Rate Loans or to convert Base Rate Loans to Eurocurrency
Rate Loans shall be suspended until such Lender notifies the Administrative
Agent and the Borrower that the circumstances giving rise to such determination
no longer exist. Upon receipt of such notice, the Borrower shall, upon demand
from such Lender (with a copy to the Administrative Agent), prepay or, if
applicable, convert all Eurocurrency Rate Loans of such Lender to Base Rate
Loans, either on the last day of the Interest Period thereof, if such Lender
may lawfully continue to maintain such Eurocurrency Rate Loans to such day, or
immediately, if such Lender may not lawfully continue to maintain such
Eurocurrency Rate Loans. Upon any such prepayment or conversion, the Borrower
shall also pay interest on the amount so prepaid or converted, together with
any amounts due with respect thereto pursuant to Section 3.14. Each Lender
agrees to designate a different Lending Office if such designation will avoid
the need for such notice and will not, in the good faith judgment of such
Lender, otherwise be materially disadvantageous to such Lender. 

                    3.12
Requirements of Law. 

          If
any Lender determines that as a result of the introduction of or any change in,
or in the interpretation of, any Requirement of Law, or such Lender’s
compliance therewith, there shall be any increase in the cost to such Lender of
agreeing to make or making, funding or maintaining Eurocurrency Rate Loans or
(as the case may be) issuing or participating in Letters of Credit, or a
reduction in the amount received or receivable by such Lender in connection
with any of the foregoing (excluding for purposes of this subsection (a) any
such increased costs or reduction in amount resulting from (i) Taxes or Other
Taxes (as to which Section 3.13 shall govern) and (ii) reserve requirements
utilized in the determination of the Eurocurrency Rate), then from time to
time, within 10 days of demand of such Lender (with a copy of such demand to
the Administrative Agent), the Borrower shall pay to such Lender such
additional amounts as will compensate such Lender for such increased cost or
reduction in yield. 

                    3.13
Taxes. 

	
  

 	
  

 
	
  

 	
           (a)
 Any and all payments by or on behalf of a Credit Party to or for the account
 of the Administrative Agent or any Lender under any Credit Document shall be
 made free and clear of and without deduction for any and all present or
 future income, stamp or other taxes, duties, levies, imposts, deductions,
 assessments, fees, withholdings or similar charges, and all liabilities with
 respect thereto, but excluding, in the case of the Administrative Agent and
 each Lender, any branch profit taxes or taxes imposed on or measured by its
 net income, and franchise taxes imposed on it (in lieu of net income taxes),
 by the jurisdiction (or any political subdivision thereof) under the laws of
 which the Administrative Agent or such Lender, as the case may be, is organized
 or maintains its Lending Office (all such non-excluded present or future
 income, stamp or other taxes, duties, levies, imposts, deductions,
 assessments, fees, withholdings or similar charges, and liabilities being
 hereinafter referred to as “Taxes”). If a Credit Party shall be required by any
 Requirement of Law to deduct any Taxes from or in respect of any sum payable
 under any Credit Document to the Administrative Agent or any Lender, (i) the
 sum 

 

54

	
  

 	
  

 
	
  

 	
 payable shall be increased
 as necessary so that after making all required deductions (including
 deductions applicable to additional sums payable under this Section 3.13(a)),
 the Administrative Agent or such Lender, as the case may be, receives an
 amount equal to the sum it would have received had no such deductions been
 made, (ii) such Credit Party shall make such deductions, (iii) such Credit
 Party shall pay the full amount deducted to the relevant taxation authority
 or other Governmental Authority in accordance with applicable Requirements of
 Law, and (iv) within 30 days after the date of such payment, such Credit
 Party shall furnish to the Administrative Agent (which shall forward the same
 to such Lender) the original or a certified copy of a receipt evidencing
 payment thereof, to the extent such receipt is issued therefor, or other
 written proof of payment thereof that is reasonably satisfactory to the
 Administrative Agent. 

 
	
  

 	
  

 
	
  

 	
           (b)
 In addition, each Credit Party agrees to pay any and all present or future
 stamp, court or documentary taxes and any other excise or property taxes or
 charges or similar levies which arise from any payment made under any Credit
 Document or from the execution, delivery, performance, enforcement or
 registration of, or otherwise with respect to, any Credit Document
 (hereinafter referred to as “Other Taxes”). 

 
	
  

 	
  

 
	
  

 	
           (c)
 If a Credit Party shall be required to deduct or pay any Taxes or Other Taxes
 from or in respect of any sum payable under any Credit Document to the
 Administrative Agent or any Lender, such Credit Party shall also pay to the
 Administrative Agent (for the account of such Lender) or to such Lender, at
 the time interest is paid, such additional amount that such Lender reasonably
 specifies by written notice to such Credit Party as necessary to preserve the
 after-tax yield (after factoring in all taxes, including taxes imposed on or
 measured by net income) such Lender would have received if such Taxes or
 Other Taxes had not been imposed; provided that if
 such Lender fails to provide such notice to such Credit Party before the date
 which is five days prior to the date such interest is paid, such Credit Party
 shall pay at the time such interest is paid such amount as such Credit Party
 reasonably estimates will preserve such Lender’s after-tax yield (after
 factoring in only such Taxes or Other Taxes) and pay the balance within five
 days after receiving such notice. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Each Credit Party agrees to indemnify the Administrative Agent and each
 Lender for (i) the full amount of Taxes and Other Taxes (including any Taxes
 or Other Taxes imposed or asserted by any jurisdiction on amounts payable
 under this Section 3.13(d)) paid by the Administrative Agent and such Lender,
 and (ii) any liability (including penalties, interest and reasonable expenses)
 arising therefrom or with respect thereto. 

 
	
  

 	
  

 
	
  

 	
           (e)
 In the case of any payment hereunder or under any other Credit Document by or
 on behalf of a Credit Party through an account or branch outside the United
 States, or on behalf of a Credit Party by a payor that is not a United States
 person, if such Credit Party determines that no taxes are payable in respect
 thereof, such Credit Party shall furnish, or shall cause such payor to
 furnish, to the Administrative Agent, an opinion of counsel reasonably
 acceptable to the Administrative Agent stating that such payment is exempt
 from Taxes. For purposes of this subsection (e), the terms “United States” and “United States person” shall have the meanings specified in Section 7701 of the Code. 

 

55

	
  

 	
  

 
	
  

 	
           (f)
 Each Lender that is a foreign corporation, foreign partnership or foreign
 trust within the meaning of the Code shall deliver to the Administrative
 Agent, prior to receipt of any payment subject to withholding under the Code,
 two duly signed completed copies of either IRS Form W-8BEN or any successor
 thereto (relating to such Lender and entitling it to an exemption from, or
 reduction of, withholding tax on all payments to be made to such Lender by
 the Credit Parties pursuant to this Credit Agreement) or IRS Form W-8ECI or
 any successor thereto (relating to all payments to be made to such Lender by
 a Credit Party pursuant to this Credit Agreement), as appropriate, or such
 other evidence satisfactory to the Borrower and the Administrative Agent that
 such Lender is entitled to an exemption from, or reduction of, United States
 withholding tax. Upon the request of the Administrative Agent or the
 Borrower, each Lender that is a “United States person” within the meaning of
 Section 7701(a)(30) of the Code shall deliver to the Administrative Agent two
 duly signed completed copies of IRS Form W-9 or any successor thereto or such
 other evidence satisfactory to the Borrower and the Administrative Agent that
 such Lender is entitled to an exemption from, or reduction of, United States
 withholding tax. Thereafter and from time to time, each such Lender shall (i)
 promptly submit to the Administrative Agent such additional duly completed
 and signed copies of one of such forms (or such successor forms as shall be
 adopted from time to time by the relevant United States taxing authorities),
 as appropriate, as may reasonably be requested by the Borrower or the
 Administrative Agent and then be available under then current United States
 laws and regulations to avoid, or such evidence as is satisfactory to the
 Borrower and the Administrative Agent of any available exemption from or
 reduction of, United States withholding taxes in respect of all payments to
 be made to such Lender by the Borrower pursuant to this Credit Agreement,
 (ii) promptly notify the Administrative Agent of any change in circumstances
 which would modify or render invalid any claimed exemption or reduction (or
 it is determined the earlier claimed exemption was incorrectly claimed for
 any reason), and (iii) take such steps as shall not be materially
 disadvantageous to it, in the reasonable judgment of such Lender, and as may
 be reasonably necessary (including the re-designation of its Lending Office)
 to avoid any Requirement of Law that the Credit Parties make any deduction or
 withholding for taxes from amounts payable to such Lender. If the forms or
 other evidence provided by such Lender at the time such Lender first becomes
 a party to this Credit Agreement indicate a United States interest withholding
 tax rate in excess of zero, withholding tax at such rate shall be considered
 excluded from Taxes for purpose of any indemnity or gross up unless and until
 such Lender provides the appropriate forms certifying that a lesser rate
 applies, whereupon withholding tax at such lesser rate only shall be
 considered excluded from Taxes for periods governed by such forms; provided,
 however, that, if at the date of any assignment pursuant to which a
 Lender becomes a party to this Credit Agreement, the Lender assignor was
 entitled to payments under subsection (a) of this Section 3.13 in respect of
 United States withholding tax with respect to interest paid at such date,
 then, to such extent, the term Taxes shall include (in addition to
 withholding taxes that may be imposed in the future or other amounts
 otherwise includable in Taxes) United States withholding tax, if any,
 applicable with respect to the Lender assignee on such date. If such Lender
 fails to deliver the above forms or other evidence, then the Borrower or the
 Administrative Agent may withhold from any interest payment to such Lender an
 amount equal to the applicable withholding 

 

56

	
  

 	
  

 
	
  

 	
 tax imposed
 by the Code, without reduction. If any Governmental Authority asserts that
 the Borrower or the Administrative Agent did not properly withhold any tax or
 other amount from payments made in respect of such Lender, such Lender shall
 indemnify the Borrower or the Administrative Agent therefor, including all
 penalties and interest, any taxes imposed by any jurisdiction on the amounts
 payable to the Borrower or the Administrative Agent under this Section
 3.13(f), and costs and expenses (including Attorney Costs) of the Borrower or
 the Administrative Agent. For any period with respect to which a Lender has
 failed to provide the Administrative Agent with the above forms or other
 evidence (other than if such failure is due to a change in the applicable
 law, or in the interpretation or application thereof, occurring after the
 date on which such form or other evidence originally was required to be
 provided or if such form or other evidence otherwise is not required), such
 Lender shall not be entitled to indemnification under subsection (d) of this
 Section 3.13 nor shall the Credit Party be required to deduct or withhold
 under subsections (a) or (c) of this Section 3.13 with respect to Taxes
 imposed by the United States by reason of such failure; provided, however, that should a Lender become subject to Taxes
 because of its failure to deliver such form or other evidence required hereunder,
 the Borrower shall take such steps as such Lender shall reasonably request to
 assist such Lender in recovering such Taxes. The obligation of the Lenders
 under this Section 3.13(f) shall survive the payment of all Credit Party
 Obligations and the resignation or replacement of the Administrative Agent. 

 
	
  

 	
  

 
	
  

 	
           (g)
 In the event that an additional payment is made under Section 3.13(a) or (c)
 for the account of any Lender and such Lender, in its reasonable judgment,
 determines that it has finally and irrevocably received or been granted a
 credit against or release or remission for, or repayment of, any tax paid or
 payable by it in respect of or calculated with reference to the deduction or
 withholding giving rise to such payment, such Lender shall, to the extent
 that it determines that it can do so without prejudice to the retention of
 the amount of such credit, relief, remission or repayment, pay to the
 Borrower such amount as such Lender shall, in its reasonable judgment, have
 determined to be attributable to such deduction or withholding and which will
 leave such Lender (after such payment) in no worse position than it would
 have been in if the Borrower had not been required to make such deduction or
 withholding. Nothing herein contained shall interfere with the right of a
 Lender to arrange its tax affairs in whatever manner it thinks fit nor oblige
 any Lender to claim any tax credit or to disclose any information relating to
 its tax affairs or any computations in respect thereof or require any Lender
 to do anything that would prejudice its ability to benefit from any other
 credits, reliefs, remissions or repayments to which it may be entitled. 

 
	
  

 	
  

 
	
  

 	
           3.14
 Compensation.

 

          Upon
the written demand of any Lender, the Borrower shall promptly compensate such
Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of: 

	
  

 	
  

 
	
  

 	
           (a)
 any continuation, conversion, payment or prepayment of any Eurocurrency Rate
 Loan on a day other than the last day of the Interest Period for such 

 

57

	
  

 	
  

 
	
  

 	
 Eurocurrency Rate Loan
 (whether voluntary, mandatory, automatic, by reason of acceleration, or
 otherwise); or 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (c)
 any repayment of a Competitive Bid Loan on a date which is not the last day
 of the Interest Period applicable thereto or any failure by the Borrower to
 borrow a Competitive Bid Loan on the date in the amount previously agreed to
 by the Borrower; or 

 

                    (d)
any assignment required pursuant to Section 2.2(e)(iii), Section 3.17 or
Section 11.6. 

The amount each such Lender
shall be compensated pursuant to this Section 3.14 shall include, without
limitation, (i) any loss incurred by such Lender in connection with the
re-employment of funds prepaid, repaid, not borrowed or paid, as the case may
be and (ii) any reasonable out-of-pocket expenses (including Attorney Costs)
incurred and reasonably attributable thereto. 

For purposes of calculating
amounts payable by the Borrower to the Lenders under this Section 3.14, each
Lender may deem that it funded each Eurocurrency Rate Loan made by it at the
Eurocurrency Rate for such Eurocurrency Rate Loan by a matching deposit or
other borrowing in the applicable offshore interbank markets for such currency
for a comparable amount and for a comparable period, whether or not such
Eurocurrency Rate Loan was in fact so funded. 

                    3.15
Determination and Survival of Provisions. 

          All
determinations by the Administrative Agent or a Lender of amounts owing under
Sections 3.9 through 3.14, inclusive, shall, absent manifest error, be
conclusive and binding on the parties hereto. In determining such amount, the
Administrative Agent or such Lender may use any reasonable averaging and
attribution methods. Section 3.9 through 3.14, inclusive, shall survive the
termination of this Credit Agreement and the payment of all Credit Party
Obligations. 

                    3.16
Notification by Lenders. 

          Subject
to Section 3.13(c), each Lender shall notify the Borrower (and any applicable
Credit Party) of any event that will entitle such Lender to compensation under
Section 3.9, 3.12, 3.13 or 3.14 as promptly as practicable, but in any event
within 90 days after such Lender obtains actual knowledge thereof; provided,
however, that if any
Lender fails to give such notice within 90 days after it obtains actual
knowledge of such an event, such Lender shall, with respect to compensation
payable pursuant to Section 3.9, 3.12, 3.13 or 3.14 in respect of any costs
resulting from such event, only be entitled to payment under Section 3.9, 3.12,
3.13 or 3.14 for costs incurred from and after the date 90 days prior to the
date that such Lender gives such notice. If requested by the Borrower, each
Lender will furnish to Borrower within ten Business Days of the time the Lender
requests compensation under Section 3.9, 3.12, 3.13 or 3.14, a certificate
setting forth the basis, amount and reasonable detail of computation of each
request by such Lender for 

58

compensation under
Section 3.9, 3.12, 3.13 or 3.14, which certificate shall, except for
demonstrable error, be final, conclusive and binding for all purposes. 

                    3.17
Mitigation; Mandatory Assignment.

          Each
Lender shall use reasonable efforts to avoid or mitigate any increased cost or
suspension of the availability of an interest rate under Sections 3.9 through
3.14 above to the greatest extent practicable (including transferring the Loans
to another Lending Office or Affiliate of a Lender) unless, in the reasonable
opinion of such Lender, such efforts would be likely to have an adverse effect
upon it. In the event a Lender makes a request to the Borrower for additional
payments in accordance with Section 3.9, 3.11, 3.12, 3.13 or 3.14, then, provided that no Default or Event of
Default has occurred and is continuing at such time, the Borrower may, at its
own expense (such expense to include, without limitation, any transfer fee
payable to the Administrative Agent under Section 11.3(b)) and in its sole
discretion, require such Lender to transfer and assign in whole (but not in
part), without recourse (in accordance with and subject to the terms and
conditions of Section 11.3(b)), all of its interests, rights and obligations
under this Credit Agreement to an Eligible Assignee which shall assume such
assigned obligations (which assignee may be another Lender, if a Lender accepts
such assignment); provided that
(a) such assignment shall not conflict with any law, rule or regulation or
order of any court or other Governmental Authority and (b) the Borrower or such
assignee shall have paid to the assigning Lender in immediately available funds
the principal of and interest accrued to the date of such payment on the
portion of the Loans hereunder held by such assigning Lender and all other
amounts owed to such assigning Lender hereunder, including amounts owed
pursuant to Sections 3.9 through 3.14 hereof. 

SECTION 4

GUARANTY 

                    4.1 Guaranty of Payment.

          Subject
to Section 4.7 below, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Lender and the Administrative Agent the
prompt payment of the Credit Party Obligations in full when due (whether at
stated maturity, as a mandatory prepayment, by acceleration or otherwise) and
the timely performance of all other obligations under the Credit Documents.
This Guaranty is a guaranty of payment and not of collection and is a
continuing guaranty and shall apply to all Credit Party Obligations whenever
arising. 

                    4.2 Obligations Unconditional. 

          The
obligations of the Guarantors hereunder are absolute and unconditional,
irrespective of the value, genuineness, validity, regularity or enforceability
of any of the Credit Documents, or any other agreement or instrument referred
to therein, to the fullest extent permitted by applicable law, irrespective of
any other circumstance whatsoever which might otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor. Each Guarantor agrees
that this Guaranty may be enforced by the Lenders without the necessity at any
time of resorting to or exhausting any other security or collateral and without
the necessity at any time of having recourse to the Notes or

59

any other of the Credit
Documents or any collateral, if any, hereafter securing the Credit Party
Obligations or otherwise and each Guarantor hereby waives the right to require
the Lenders to proceed against the Borrower or any other Person (including a
co-guarantor) or to require the Lenders to pursue any other remedy or enforce
any other right. Each Guarantor further agrees that it shall have no right of
subrogation, indemnity, reimbursement or contribution against the Borrower or
any other Guarantor of the Credit Party Obligations for amounts paid under this
Guaranty until such time as the Lenders have been paid in full and all
Commitments under the Credit Agreement have been terminated. Each Guarantor
further agrees that nothing contained herein shall prevent the Lenders from
suing on the Notes or any of the other Credit Documents or foreclosing its
security interest in or Lien on any collateral, if any, securing the Credit
Party Obligations or from exercising any other rights available to it under
this Credit Agreement, the Notes, any other of the Credit Documents, or any
other instrument of security, if any, and the exercise of any of the aforesaid
rights and the completion of any foreclosure proceedings shall not constitute a
discharge of any of any Guarantor’s obligations hereunder; it being the purpose
and intent of each Guarantor that its obligations hereunder shall be absolute,
independent and unconditional under any and all circumstances. Neither any
Guarantor’s obligations under this Guaranty nor any remedy for the enforcement
thereof shall be impaired, modified, changed or released in any manner
whatsoever by an impairment, modification, change, release or limitation of the
liability of the Borrower or by reason of the bankruptcy or insolvency of the
Borrower. Each Guarantor waives any and all notice of the creation, renewal,
extension or accrual of any of the Credit Party Obligations and notice of or
proof of reliance of by the Administrative Agent or any Lender upon this
Guaranty or acceptance of this Guaranty. The Credit Party Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or
incurred, or renewed, extended, amended or waived, in reliance upon this
Guaranty. All dealings between the Borrower and any of the Guarantors, on the
one hand, and the Administrative Agent and the Lenders, on the other hand,
likewise shall be conclusively presumed to have been had or consummated in
reliance upon this Guaranty. The Guarantors further agree to all rights of
set-off as set forth in Section 11.2. 

                    4.3
Modifications.

          Each
Guarantor agrees that (a) all or any part of the collateral, if any, now or
hereafter held for the Credit Party Obligations, if any, may be exchanged,
compromised or surrendered from time to time; (b) the Lenders shall not have
any obligation to protect, perfect, secure or insure any such security
interests, liens or encumbrances now or hereafter held, if any, for the Credit
Party Obligations or the properties subject thereto; (c) the time or place of
payment of the Credit Party Obligations may be changed or extended, in whole or
in part, to a time certain or otherwise, and may be renewed or accelerated, in
whole or in part; (d) the Borrower and any other party liable for payment under
the Credit Documents may be granted indulgences generally; (e) any of the
provisions of the Notes or any of the other Credit Documents may be modified,
amended or waived; (f) any party (including any co-guarantor) liable for the
payment thereof may be granted indulgences or be released; and (g) any deposit
balance for the credit of the Borrower or any other party liable for the
payment of the Credit Party Obligations or liable upon any security therefor
may be released, in whole or in part, at, before or after the stated, extended
or accelerated maturity of the Credit Party Obligations, all without notice to
or further assent by such Guarantor, which shall remain bound thereon,
notwithstanding any such exchange, compromise, surrender, extension, renewal,
acceleration, modification, indulgence or release. 

60

                    4.4
Waiver of Rights.

          Each
Guarantor expressly waives to the fullest extent permitted by applicable law:
(a) notice of acceptance of this Guaranty by the Lenders and of all extensions
of credit to the Borrower by the Lenders; (b) presentment and demand for
payment or performance of any of the Credit Party Obligations; (c) protest and
notice of dishonor or of default (except as specifically required in the Credit
Agreement) with respect to the Credit Party Obligations or with respect to any
security therefor; (d) notice of the Lenders obtaining, amending, substituting
for, releasing, waiving or modifying any security interest, lien or
encumbrance, if any, hereafter securing the Credit Party Obligations, or the
Lenders’ subordinating, compromising, discharging or releasing such security
interests, liens or encumbrances, if any; and (e) all other notices to which
such Guarantor might otherwise be entitled. 

                    4.5
Reinstatement.

          The
obligations of the Guarantors under this Section 4 shall be automatically
reinstated if and to the extent that for any reason any payment by or on behalf
of any Person in respect of the Credit Party Obligations is rescinded or must
be otherwise restored by any holder of any of the Credit Party Obligations,
whether as a result of any proceedings in bankruptcy or reorganization or
otherwise, and each Guarantor agrees that it will indemnify the Administrative
Agent and each Lender on demand for all reasonable costs and expenses (including,
without limitation, reasonable Attorney Costs) incurred by the Administrative
Agent or such Lender in connection with such rescission or restoration,
including any such costs and expenses incurred in defending against any claim
alleging that such payment constituted a preference, fraudulent transfer or
similar payment under any bankruptcy, insolvency or similar law. 

                    4.6
Remedies.

          The
Guarantors agree that, as between the Guarantors, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, the Credit Party
Obligations may be declared to be forthwith due and payable as provided in
Section 9 (and shall be deemed to have become automatically due and payable in
the circumstances provided in Section 9) notwithstanding any stay, injunction
or other prohibition preventing such declaration (or preventing such Credit
Party Obligations from becoming automatically due and payable) as against any
other Person and that, in the event of such declaration (or such Credit Party
Obligations being deemed to have become automatically due and payable), such
Credit Party Obligations (whether or not due and payable by any other Person)
shall forthwith become due and payable by the Guarantors. 

                    4.7
Limitation of Guaranty. 

          Notwithstanding
any provision to the contrary contained herein or in any of the other Credit
Documents, to the extent the obligations of any Guarantor shall be adjudicated
to be invalid or unenforceable for any reason (including, without limitation,
because of any applicable state or federal law relating to fraudulent
conveyances or transfers) then the obligations of such Guarantor hereunder
shall be limited to the maximum amount that is permissible under applicable law
(whether federal or state or otherwise and including, without limitation, the
Bankruptcy Code). 

61

                    4.8
Rights of Contribution. 

          The
Credit Parties agree among themselves that, in connection with payments made
hereunder, each Credit Party shall have contribution rights against the other
Credit Parties as permitted under applicable law. Such contribution rights
shall be subordinate and subject in right of payment to the obligations of the
Credit Parties under the Credit Documents and no Credit Party shall exercise
such rights of contribution until all Credit Party Obligations have been paid
in full and the Commitments terminated. 

                    4.9
Release of Guarantors. 

          Subject
to Section 7.12(b), if any of the Guarantors shall cease to be a Material
Domestic Subsidiary of the Borrower for any reason subject to and in accordance
with the terms of the Credit Agreement, then such Guarantor shall,
automatically and without any further action on the part of any party to any
Credit Document, and upon notice to the Administrative Agent, be fully released
and discharged from all its liabilities and obligations under or in respect of
the Credit Documents to which such Guarantor is a party (other than liabilities
and obligations resulting from a demand on such Guarantor’s Guaranty pursuant
to Section 9.2) and, promptly upon the request of the Borrower and at the
expense of the Borrower, the Administrative Agent shall execute such documents
and take such other action as is reasonably requested by the Borrower to
evidence the release and discharge of such Guarantor from all such liabilities
and obligations and shall, if applicable, certify to the Borrower that such
Guarantor has no liabilities or obligations resulting from a demand on such
Guarantor’s Guaranty pursuant to Section 9.2. 

SECTION 5

CONDITIONS PRECEDENT

                    5.1
Closing Conditions to Extensions of Credit Made on the Closing Date.

          The
obligation of the Lenders to make the initial Extensions of Credit is subject
to satisfaction (or waiver) of the following conditions: 

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 Executed Credit Documents. Receipt by the Administrative Agent of duly executed copies of: (i)
 this Credit Agreement; (ii) the Notes requested by Lenders (or the Swing Line
 Lender) prior to the Closing Date; and (iii) all other Credit Documents, each
 in form and substance reasonably acceptable to the Lenders in their sole
 discretion. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (b)
 Authority Documents. Receipt by the Administrative Agent of the following with respect to
 each Credit Party: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 Organizational
 Documents. Copies of the articles or certificates of
 incorporation or other organizational documents of each Credit Party
 certified to be true and complete as of a recent date by the appropriate
 Governmental Authority of the state or other jurisdiction of its formation
 and certified by a secretary or assistant secretary of such Credit Party to
 be true and correct as of the Closing Date. 

 

62

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 Bylaws. A copy of the bylaws or other governing documents of each
 Credit Party certified by a secretary or assistant secretary of such Credit
 Party to be true and correct as of the Closing Date. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 Resolutions. Copies of resolutions of the Board of Directors or other
 governing body of each Credit Party approving and adopting the Credit
 Documents to which it is a party, the transactions contemplated therein and
 authorizing execution and delivery thereof, certified by a secretary or
 assistant secretary of such Credit Party to be true and correct and in full
 force and effect as of the Closing Date. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv)
 Good Standing. Copies of certificates of good standing, existence or
 its equivalent with respect to each Credit Party certified as of a recent
 date by the appropriate Governmental Authority of the state or other
 jurisdiction of its formation. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (v)
 Incumbency. An incumbency certificate of each Credit Party certified
 by a secretary or assistant secretary of such Credit Party to be true and
 correct as of the Closing Date. 

 
	
  

 	
  

 
	
  

 	
           (c)
 Opinions of Counsel. Receipt by the Administrative Agent of opinions
 reasonably satisfactory to the Administrative Agent, addressed to the
 Administrative Agent on behalf of the Lenders and dated as of the Closing
 Date. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Consents. Receipt by the Administrative Agent of evidence that all
 necessary governmental, shareholder and third party consents and approvals,
 if any, have been received and no condition or Requirement of Law exists
 which would reasonably be likely to restrain, prevent or impose any material
 adverse conditions on the transactions contemplated hereby. 

 
	
  

 	
  

 
	
  

 	
           (e)
 Officer’s Certificate. The Borrower shall have delivered a certificate
 of an Authorized Officer in substantially the form of Exhibit 5.1(e). 

 
	
  

 	
  

 
	
  

 	
           (f)
 Existing Debt. (A) Receipt by the Administrative Agent of “payoff
 letters” (or the like) or other evidence satisfactory to it that (i) the
 Amended and Restated Credit Agreement, dated as of April 20, 2004, among the
 Borrower, certain of the Borrower’s subsidiaries, as Guarantors, the Lenders
 (as defined therein), and Bank of America, N.A., as Administrative Agent,
 (ii) the Interim Credit Agreement, dated as of January 31, 2007, among the
 Borrower, certain of the Borrower’s subsidiaries, as Guarantors, the Lenders
 (as defined therein), and Bank of America, N.A., as Administrative Agent,
 (iii) the 10% Senior Subordinated Note due 2014 of Ameripath Holdings, Inc.
 and (iv) the Credit Agreement, dated as of January 31, 2006, and as amended
 on September 27, 2006, by and among Ameripath Holdings, Inc., Ameripath,
 Inc., Wachovia Bank, N.A., Citigroup Global Markets Inc., Deutsche Bank
 Securities Inc., UBS Securities LLC, and Wachovia Capital Markets, LLC, have
 been paid in full (or will be paid in full with the proceeds of the initial
 Loans made hereunder) and all agreements and notes executed or delivered in
 connection therewith have been cancelled or terminated, (B) receipt by the 

 

63

	
  

 	
  

 
	
  

 	
 Administrative Agent of
 evidence satisfactory to it that funds sufficient to defease the Floating
 Rate PIK Toggle Notes of Ameripath Intermediate Holdings, Inc shall be
 deposited with the trustee thereunder from the proceeds of the initial Loans
 made hereunder, and (C) evidence satisfactory to the Administrative Agent
 that the tender offer (the “101⁄2 Subordinated Note Tender Offer”) for the 101⁄2% Senior
 Subordinated Notes due 2013 of AmeriPath, Inc. shall have been commenced. 

 
	
  

 	
  

 
	
  

 	
           (g)
 Fees and Expenses. Payment by the Credit Parties of all fees (and all
 expenses for which invoices have been presented at least three Business Days
 prior to the Closing Date) owed by them as of the Closing Date to the Agents
 and the Lenders, including, without limitation, as set forth in the Fee
 Letter.

 
	
  

 	
  

 
	
  

 	
           (h)
 Bridge Credit Agreement. The Bridge Credit Agreement shall have been
 duly executed and be in full force and effect. 

 
	
  

 	
  

 
	
  

 	
           (i)
 Consummation of Ameripath Acquisition. The Lead Arrangers shall have
 received evidence reasonably satisfactory to it that the Ameripath
 Acquisition shall have been concurrently consummated in accordance with the
 Merger Agreement (as in effect on the date hereof). 

 
	
  

 	
  

 
	
  

 	
           (j)
 Financial Projections. The Administrative Agent shall have received
 financial projections prepared on a pro forma basis giving effect to the
 Transaction as if the Transaction had occurred as of the most recent fiscal
 quarter ended prior to the Closing Date (the “Projections”). The
 Borrower shall have prepared the Projections in good faith and based upon
 reasonable assumptions. 

 
	
  

 	
  

 
	
  

 	
           (k)
 Patriot Act Disclosures. The Lenders shall have received all Patriot
 Act Disclosures reasonably requested by them prior to execution of this
 Credit Agreement. 

 
	
  

 	
  

 
	
  

 	
           (1)
 Material Adverse Effect. Since April 15, 2007, there shall not have
 been a Material Adverse Effect (as defined in the Merger Agreement as in
 effect on the date hereof). 

 
	
  

 	
  

 
	
  

 	
           (m)
 [Intentionally Omitted].

 
	
  

 	
  

 
	
  

 	
           (n)
 Termination Date. The Termination Date shall not have occurred. 

 
	
  

 	
  

 
	
  

 	
           (o)
 Other. Receipt by the Administrative Agent of such other customary
 closing documents, certificates and instruments, as reasonably and timely
 requested by the Administrative Agent. 

 

                    5.2
Conditions to All Other Extensions of Credit. 

          In
addition to the conditions precedent stated elsewhere herein, the Lenders shall
not be obligated to make Loans nor shall the Issuing Lender be required to
issue or extend a Letter of Credit in each case, after the Closing Date and
excluding the initial funding of the Loans hereunder, unless, as of the date
thereof: 

64

	
  

 	
  

 
	
  

 	
           (a)
 Notice. The Borrower shall have delivered (i) in the case of any Loan,
 to the Administrative Agent, an appropriate Notice of Borrowing, duly
 executed and completed, by the time specified in Section 2.2, (ii) in the
 case of any Letter of Credit, to the Issuing Lender, an appropriate request
 for issuance of a Letter of Credit in accordance with the provisions of
 Section 2.3, (iii) in the case of any Swing Line Loan, to the Swing Line
 Lender, a Swing Line Loan Request, duly executed and completed, by the time
 specified in Section 2.4, and (iv) in the case of any Competitive Bid Loan,
 to the Administrative Agent, an appropriate Competitive Bid Request, duly
 executed and completed, by the time specified in Section 2.5. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Representations and Warranties. The representations and warranties
 made by the Credit Parties in this Agreement or any Credit Document are true
 and correct in all material respects at and as if made as of such date except
 to the extent they expressly and exclusively relate to an earlier date in
 which case such representations and warranties shall be true and correct as
 of such earlier date. 

 
	
  

 	
  

 
	
  

 	
           (c)
 No Default. No Default or Event of Default shall exist and be
 continuing either prior to or after giving effect to such Extension of
 Credit. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Availability. Immediately after giving effect to the making of a Loan
 (and the application of the proceeds thereof) or to the issuance of a Letter
 of Credit, as the case may be, (i) the sum of the Dollar Equivalent of
 outstanding Revolving Loans plus outstanding LOC Obligations plus
 outstanding Swing Line Loans plus outstanding Competitive Bid Loans shall not
 exceed the Revolving Committed Amount, (ii) the sum of outstanding LOC
 Obligations shall not exceed the LOC Committed Amount, (iii) the sum of
 outstanding Swing Line Loans shall not exceed the Swing Line Committed Amount
 and (iv) the sum of outstanding Competitive Bid Loans shall not exceed
 $500,000,000. 

 

The delivery of each Notice
of Borrowing, each request for a Letter of Credit, each Swing Line Loan Request
and each Competitive Bid Loan Request shall constitute a representation and
warranty by the Borrower of the correctness of the matters specified in
subsections (b), (c), and (d) above. 

SECTION 6

REPRESENTATIONS AND WARRANTIES

          The
Credit Parties hereby represent to the Administrative Agent and each Lender
that: 

                    6.1
Organization and Good Standing. 

          Each
Credit Party (a) is either a partnership, a corporation or a limited liability
company duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization, (b) is duly qualified and in good
standing as a foreign organization and authorized to do business in every other
jurisdiction where its ownership or operation of property or the conduct of its
business would require it to be qualified, in good standing and authorized,
unless 

65

the failure to be so
qualified, in good standing or authorized would not have or would not
reasonably be expected to have a Material Adverse Effect and (c) has the power
and authority to own and operate its properties and to carry on its business as
now conducted and as currently proposed to be conducted. 

                    6.2
Due Authorization. 

          Each
Credit Party (a) has the power and authority to execute, deliver and perform
this Credit Agreement and the other Credit Documents to which it is a party and
to incur the obligations herein and therein provided for and (b) has duly taken
all necessary action to authorize, and is duly authorized, to execute, deliver
and perform this Credit Agreement and the other Credit Documents to which it is
a party. 

                    6.3
Enforceable Obligations.

          Each
Credit Party has duly executed this Credit Agreement and each other Credit
Document to which such Credit Party is a party and this Credit Agreement and
such other Credit Documents constitute legal, valid and binding obligations of
such Credit Party enforceable against such Credit Party in accordance with
their respective terms, except as may be limited by bankruptcy or insolvency
laws or similar laws affecting creditors’ rights generally or by general
equitable principles. 

                    6.4
No Conflicts.

          Neither
the execution and delivery of the Credit Documents to which it is a party, nor
the consummation of the transactions contemplated herein and therein, nor the
performance of or compliance with the terms and provisions hereof and thereof
by a Credit Party will (a) violate, contravene or conflict with any provision
of such Credit Party’s organizational documents, (b) violate, contravene or
conflict with any Requirement of Law (including, without limitation,
Regulations T, U or X), order, writ, judgment, injunction, decree, license or
permit applicable to such Credit Party which violation would have or would
reasonably be expected to have a Material Adverse Effect, (c) violate,
contravene or conflict with contractual provisions of, or cause an event of
default under, any indenture, loan agreement, mortgage, deed of trust, contract
or other agreement or instrument to which such Credit Party is a party or by
which it or its properties may be bound which violation would have or would
reasonably be expected to have a Material Adverse Effect, or (d) result in or
require the creation of any Lien upon or with respect to the properties of such
Credit Party. 

                    6.5
Consents.

          Except
for consents, approvals and authorizations which have been obtained or the
absence of which would not have or would not reasonably be expected to have a
Material Adverse Effect, no consent, approval, authorization or order of, or
filing, registration or qualification with, any Governmental Authority, equity
owner or third party in respect of any Credit Party is required in connection
with the execution, delivery or performance of this Credit Agreement or any of
the other Credit Documents, or the consummation of any transaction contemplated
herein or therein by such Credit Party. 

66

                    6.6
Financial Condition.

          The
financial statements delivered to the Administrative Agent and the Lenders
pursuant to Sections 7.1(a) and (b): (a) have been prepared in accordance with
GAAP and (b) present fairly the consolidated financial condition, results of
operations and cash flows of the Borrower and its Subsidiaries as of such date
and for such periods. Since December 31, 2006, there has been no sale, transfer
or other disposition by the Borrower or any of its Subsidiaries of any material
part of the business or property of the Borrower and its Subsidiaries, taken as
a whole, or purchase or other acquisition by any such Person of any business or
property (including any Capital Stock of any other Person) material in relation
to the consolidated financial condition of the Borrower and its Subsidiaries,
taken as a whole, in each case, which, is not (i) reflected in the most recent
financial statements delivered to the Lenders prior to the date hereof or
pursuant to Section 7.1 or in the notes thereto or (ii) otherwise permitted by
the terms of this Credit Agreement and communicated to the Administrative Agent
and the Lenders. 

                    6.7
Intentionally Omitted.

                    6.8
Disclosure.

          Neither
this Credit Agreement, nor any other Credit Document, nor any financial
statements delivered to the Administrative Agent or the Lenders nor any other
document, certificate or statement furnished to the Administrative Agent or the
Lenders by or on behalf of any Credit Party in connection with the transactions
contemplated hereby, taken as a whole, contains any untrue statement of a
material fact or omits to state a material fact necessary in order to make the
statements contained therein or herein not misleading. 

                    6.9
No Default.

          No
Default or Event of Default has occurred and is continuing or would result from
the consummation of the transactions contemplated by this Credit Agreement and
the other Credit Documents. 

                    6.10
Litigation.

          Except
as set forth in Schedule
6.10, no litigation, investigation, claim,
criminal prosecution, civil investigative demand, imposition of criminal or
civil fines and penalties, or any other proceeding of or before any arbitrator
or Governmental Authority is pending or, to the knowledge of the Borrower,
threatened by or against the Borrower or any of its Subsidiaries or against any
of its or their respective Properties (a) with respect to the Credit Documents
or any Loan or any of the transactions contemplated hereby or (b) which would
reasonably be expected to have a Material Adverse Effect. 

                    6.11
Taxes. 

          The
Borrower and each of its Subsidiaries has filed, or caused to be filed, all
material tax returns (federal, state, local and foreign) required to be filed
and has paid (a) all amounts of taxes shown thereon to be due (including
interest and penalties) and (b) all other material taxes, fees, assessments and
other governmental charges (including mortgage recording taxes, documentary 

67

stamp taxes and intangibles
taxes) owing by it, except for such taxes (i) which are not yet delinquent or
(ii) that are being contested in good faith and by proper proceedings, and
against which adequate reserves are being maintained in accordance with GAAP. 

                    6.12
Compliance with Law.

          Except
to the extent the same would not have or would not reasonably be expected to
have a Material Adverse Effect: 

	
  

 	
  

 
	
  

 	
           (a)
 The Borrower and each of its Subsidiaries is in compliance with all
 Requirements of Law (including, without limitation, Environmental Laws,
 ERISA, HIPAA, Medicaid Regulations and Medicare Regulations) and all material
 orders, writs, injunctions and decrees applicable to it, or to its
 Properties. 

 
	
  

 	
  

 
	
  

 	
           (b)
 (i) Neither the Borrower nor any of its Subsidiaries nor any individual
 employed by the Borrower or any of its Subsidiaries has been, or may
 reasonably be expected to be, excluded or suspended from participation in any
 Medical Reimbursement Program for their corporate or individual actions or
 failures to act; and (ii) there is no member of management continuing to be
 employed by the Borrower or any of its Subsidiaries who has been, or may
 reasonably be expected to have, individual criminal culpability for healthcare
 matters under investigation by any Governmental Authority unless such member
 of management has been, within a reasonable period of time after discovery of
 such actual or potential culpability, either suspended or removed from
 positions of responsibility related to those activities under challenge by
 the Governmental Authority. 

 
	
  

 	
  

 
	
  

 	
           (c)
 Current billing policies, arrangements, protocols and instructions comply
 with all material requirements of Medical Reimbursement Programs and are
 administered by properly trained personnel. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Current medical director compensation arrangements and other arrangements
 with referring physicians comply with state and federal self-referral and
 anti-kickback laws, including without limitation 42 U.S.C. Section
 1320a-7b(b)(I) - (b)(2) and 42 U.S.C. Section 1395nn. 

 

                    6.13
Licensing and Accreditation. 

          Except
to the extent the same would not have or would not be reasonably expected to
have a Material Adverse Effect, each of the Credit Parties has, to the extent
applicable: (a) obtained and maintains in good standing all required licenses,
permits, authorization and approvals of each Governmental Authority necessary
to the conduct of its business; (b) to the extent prudent and customary in the
industry in which it is engaged, obtained and maintains accreditation from all
generally recognized accrediting agencies (including, but not limited to, CAP);
(c) obtained and maintains CLIA certification; (d) entered into and maintains
in good standing its Medicare Provider Agreements and its Medicaid Provider
Agreements; and (e) ensured that all such required licenses, certifications and
accreditations are in full force and effect on the date hereof and have not
been revoked or suspended or otherwise limited. 

68

                    6.14
Title to Properties, Liens. 

          The
Borrower and each of its Subsidiaries, is the owner of, and has good title to,
or has a valid license or lease to use, all of its material Properties. All
Liens on the Properties of the Borrower and its Subsidiaries are Permitted
Liens. 

                    6.15
Insurance. 

          The
properties of the Borrower and each of its Subsidiaries are insured with
financially sound and reputable insurance companies that are not Affiliates of
the Borrower (except to the extent that self-insurance is maintained in
reasonable amounts), in such amounts, with such deductibles and covering such
risks, as is reasonable and prudent. 

                    6.16
Use of Proceeds. 

          The
proceeds of the Loans will be used solely for the purposes specified in Section
7.10. No proceeds of the Loans will be used for the Acquisition of another
Person unless such Acquisition is a Permitted Acquisition. 

                    6.17
Government Regulation. 

	
  

 	
  

 
	
  

 	
           (a)
 “Margin stock” within the meaning of Regulation U does not constitute more
 than 25% of the value of the consolidated assets of the Borrower and its
 Subsidiaries. None of the transactions contemplated by the Credit Documents
 (including, without limitation, the direct or indirect use of the proceeds of
 the Loans) will violate or result in a violation of (i) the Securities Act,
 (ii) the Exchange Act or (iii) Regulations T, U or X. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Neither the Borrower nor any of its Subsidiaries is subject to regulation
 under the Federal Power Act or the Investment Company Act of 1940, each as
 amended. 

 

                    6.18
ERISA. 

          Except
as would not result in or would not reasonably be expected to result in a
Material Adverse Effect: 

	
  

 	
  

 
	
  

 	
           (a)
 (i) No ERISA Event has occurred, and, to the best knowledge of the Borrower,
 each of its Subsidiaries and each ERISA Affiliate, no event or condition has
 occurred or exists as a result of which any ERISA Event could reasonably be
 expected to occur, with respect to any Plan; (ii) no “accumulated funding
 deficiency,” as such term is defined in Section 302 of ERISA and Section 412
 of the Code, whether or not waived, has occurred with respect to any Plan and
 no application for a funding waiver or an extension of any amortization
 period pursuant to Section 412 of the Code has been made with respect to any
 Plan; (iii) each Plan has been maintained, operated, and funded in compliance
 with its own terms and in material compliance with the provisions of ERISA,
 the Code, and any other applicable federal or state laws; (iv) each Plan that
 is intended to qualify under Section 401(a) of the Code has received a
 favorable determination letter from the IRS or an application for such a
 letter is currently being processed by the IRS 

 

69

	
  

 	
  

 
	
  

 	
 with respect
 thereto and, to the best knowledge of the Borrower, each of its Subsidiaries
 and each ERISA Affiliate, nothing has occurred which would prevent, or cause
 the loss of, such qualification; and (v) no Lien in favor of the PBGC or a
 Plan has arisen or is reasonably likely to arise on account of any Plan. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Neither the Borrower nor any Subsidiary of the Borrower nor any ERISA
 Affiliate has incurred, or, to the best of each such party’s knowledge, is
 reasonably expected to incur, any liability under Title IV of ERISA with
 respect to any Single Employer Plan, or any withdrawal liability under ERISA
 to any Multiemployer Plan or Multiple Employer Plan. Neither the Borrower nor
 any Subsidiary of the Borrower nor any ERISA Affiliate has received any
 notification that any Multiemployer Plan is in reorganization (within the
 meaning of Section 4241 of ERISA), is insolvent (within the meaning of
 Section 4245 of ERISA), or has been terminated (within the meaning of Title
 IV of ERISA), and no Multiemployer Plan is, to the best of each such Person’s
 knowledge, reasonably expected to be in reorganization, insolvent, or
 terminated. Neither the Borrower nor any Subsidiary of the Borrower nor any
 ERISA Affiliate has engaged in a transaction that could be subject to
 Sections 4069 or 4212(c) of ERISA. 

 
	
  

 	
  

 
	
  

 	
           (c)
 No prohibited transaction (within the meaning of Section 406 of ERISA or
 Section 4975 of the Code) or breach of fiduciary responsibility has occurred
 with respect to a Plan which has subjected or may subject the Borrower, any
 Subsidiary of the Borrower or any ERISA Affiliate to any liability under
 Sections 406, 409, 502(i), or 502(1) of ERISA or Section 4975 of the Code, or
 under any agreement or other instrument pursuant to which the Borrower, any
 Subsidiary of the Borrower or any ERISA Affiliate has agreed or is required
 to indemnify any person against any such liability. There are no pending or,
 to the best knowledge of the Borrower, each of its Subsidiaries and each
 ERISA Affiliate, threatened claims, actions or lawsuits, or action by any
 Governmental Authority, with respect to any Plan that could reasonably be
 expected to have a Material Adverse Effect. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Each Plan that is a welfare plan (as defined in Section 3(1) of ERISA) to
 which Sections 601-609 of ERISA and Section 4980B of the Code apply has been
 administered in compliance in all material respects with such sections. 

 

                    6.19 Environmental Matters. 

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 Except as would not result in or would not reasonably be expected to result
 in a Material Adverse Effect: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 Each of the real properties owned, leased or operated by the Borrower or any
 of its Subsidiaries (the “Real Properties”) and all operations at the
 Real Properties are in compliance with all applicable Environmental Laws, and
 there is no violation of any Environmental Law with respect to the Real
 Properties or the businesses operated by the Borrower or any of its Subsidiaries
 (the “Businesses”), and
 there are no conditions relating to the Businesses or Real Properties that
 would reasonably be expected to give rise to liability under any applicable
 Environmental Laws. 

 

70

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 No Credit Party has received any written notice of, or inquiry from any
 Governmental Authority regarding, any violation, alleged violation,
 non-compliance, liability or potential liability regarding Hazardous
 Materials or compliance with Environmental Laws with regard to any of the
 Real Properties or the Businesses, nor, to the knowledge of the Borrower or
 any of its Subsidiaries, is any such notice being threatened. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 Hazardous Materials have not been transported or disposed of from the Real
 Properties, or generated, treated, stored or disposed of at, on or under any
 of the Real Properties or any other location, in each case by, or on behalf
 or with the permission of, the Borrower or any of its Subsidiaries in a
 manner that would give rise to liability under any applicable Environmental
 Laws. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv)
 No judicial proceeding or governmental or administrative action is pending
 or, to the knowledge of the Borrower or any of its Subsidiaries, threatened,
 under any Environmental Law to which the Borrower or any of its Subsidiaries
 is or will be named as a party, nor are there any consent decrees or other
 decrees, consent orders, administrative orders or other orders, or other
 administrative or judicial requirements outstanding under any Environmental Law
 with respect to the Borrower or any of its Subsidiaries, the Real Properties
 or the Businesses. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (v)
 There has been no release (including, without limitation, disposal) or threat
 of release of Hazardous Materials at or from the Real Properties, or arising
 from or related to the operations of the Borrower or any of its Subsidiaries
 in connection with the Real Properties or otherwise in connection with the
 Businesses where such release constituted a violation of, or would give rise
 to liability under, any applicable Environmental Laws. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (vi)
 None of the Real Properties contains, or has previously contained, any
 Hazardous Materials at, on or under the Real Properties in amounts or
 concentrations that, if released, constitute or constituted a violation of,
 or could give rise to liability under, Environmental Laws. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (vii)
 Neither the Borrower, nor any of its Subsidiaries, has assumed any liability
 of any Person (other than among themselves) under any Environmental Law. 

 
	
  

 	
  

 
	
  

 	
           (b)
 The Credit Parties have adopted procedures that are designed to (i) ensure
 that each Credit Party, any of its operations and each of the Real Properties
 complies with applicable Environmental Laws and (ii) minimize any liabilities
 or potential liabilities that each Credit Party, any of its operations and
 each of the Real Properties may have under applicable Environmental Laws. 

 

                    6.20
Intellectual Property. 

          The
Borrower and each of its Subsidiaries owns, or has the legal right to use, all
material patents, trademarks, tradenames, copyrights, technology, know-how and
processes (the “Intellectual

71

Property”) necessary for each of them to
conduct its business as currently conducted other than as would not have or
would not be reasonably expected to have a Material Adverse Effect. No claim
has been asserted and is pending by any Person challenging or questioning the
use of any Intellectual Property owned by the Borrower or any of its
Subsidiaries or that the Borrower or any of its Subsidiaries has a right to use
or the validity or effectiveness of any such Intellectual Property, nor does
the Borrower or any of its Subsidiaries have knowledge of any such claim, and,
to the knowledge of the Borrower and its Subsidiaries, the use of any
Intellectual Property by the Borrower and its Subsidiaries does not infringe on
the rights of any Person, except for such claims and infringements that in the
aggregate, would not have or would not reasonably be expected to have a
Material Adverse Effect. 

                    6.21
Subsidiaries.

          As
of the date hereof, set forth on Schedule 6.21 is a complete and
accurate list of all Subsidiaries of the Borrower and which of such
Subsidiaries are Material Domestic Subsidiaries. 

                    6.22
Solvency.

          Each
Credit Party is and, after consummation of the transactions contemplated by
this Credit Agreement, will be Solvent. 

                    6.23
Taxpayer Identification Number. 

          The
Borrower’s true and correct U.S. taxpayer identification number is set forth on
Schedule 6.23.

SECTION 7

AFFIRMATIVE COVENANTS

          Each
Credit Party hereby covenants and agrees that so long as this Credit Agreement
is in effect and until the Loans and LOC Obligations, together with interest
and fees and other obligations then due and payable hereunder, have been paid
in full and the Commitments and Letters of Credit hereunder shall have
terminated: 

                    7.1
Information Covenants. 

          The
Credit Parties will furnish, or cause to be furnished, to the Administrative
Agent and each of the Lenders an electronic (if readily available) and a hard
copy of: 

	
  

 	
  

 
	
  

 	
           (a)
 Annual
 Financial Statements.
 As soon as available, and in any event within the earlier of (i) 95 days
 after the close of each fiscal year of the Borrower or (ii) ten Business Days
 after the date the Borrower files its Form 10-K with the Securities and
 Exchange Commission, a consolidated balance sheet and income statement of the
 Borrower and its Subsidiaries, as of the end of such fiscal year, together
 with related consolidated statements of operations, cash flows and changes in
 stockholders’ equity for such fiscal year, setting forth in comparative form
 consolidated figures for the preceding 

 

72

	
  

 	
  

 
	
  

 	
 fiscal year,
 all such consolidated financial information described above to be audited by
 independent certified public accountants of recognized national standing and
 whose opinion shall be to the effect that such financial statements fairly
 present in all material respects the consolidated financial position, results
 of operations and cash flows of the Borrower and its Subsidiaries as at the
 end of, and for, such fiscal year in accordance with GAAP and shall not be
 limited as to the scope of the audit or qualified in any manner. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Quarterly Financial Statements. As soon as available, and in any event
 within the earlier of (i) 50 days after the close of each of the first three
 fiscal quarters of the Borrower or (ii) ten Business Days after the date the
 Borrower files its Form 10-Q with the Securities and Exchange Commission, a
 consolidated balance sheet and income statement of the Borrower and its
 Subsidiaries, as of the end of such fiscal quarter, together with related
 consolidated statements of operations, cash flows and changes in
 stockholders’ equity for such fiscal quarter setting forth in each case in
 comparative form the corresponding consolidated statements of operations and
 cash flows for the corresponding period of the preceding fiscal year, and
 accompanied by a certificate of an Authorized Officer of the Borrower to the
 effect that such quarterly financial statements fairly present in all
 material respects the consolidated financial condition of the Borrower and
 its Subsidiaries and in accordance with GAAP, subject to changes resulting
 from audit and normal year-end audit adjustments. Notwithstanding the above,
 it is understood and agreed that delivery of the Borrower’s applicable Form
 10-Q shall satisfy the requirements of this Section 7.1(b). 

 
	
  

 	
  

 
	
  

 	
           (c)
 Officer’s Certificate. At the time of delivery of the financial
 statements provided for in Sections 7.1(a) and 7.1(b) above, a certificate of
 an Authorized Officer of the Borrower substantially in the form of Exhibit
 7.1(c), (i) demonstrating compliance with the financial covenants
 contained in Section 7.2 and the covenant requirements in Section 7.12(b) by
 calculation thereof as of the end of each such fiscal period, (ii)
 demonstrating compliance with any other terms of this Credit Agreement as
 reasonably requested by the Administrative Agent, (iii) stating that no
 Default or Event of Default exists, or if any Default or Event of Default
 does exist, specifying the nature and extent thereof and what action the
 Borrower proposes to take with respect thereto and (iv) updating Schedule
 6.21 as of the end of such fiscal period. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Reports. Promptly upon transmission or receipt thereof, copies of all
 financial statements, proxy statements, notices and reports as the Borrower
 or any of its Subsidiaries shall send to shareholders of the Borrower
 generally and, upon request of the Administrative Agent, copies of any
 filings and registrations with, and reports to or from, any Governmental
 Authority which has regulatory authority with respect to the Borrower and its
 Subsidiaries. 

 
	
  

 	
  

 
	
  

 	
           (e)
 Notices. Upon a Credit Party obtaining knowledge thereof, the Borrower
 will give written notice to the Administrative Agent promptly (and in any
 event within five Business Days) of (i) the occurrence of an event or
 condition consisting of a Default or Event of Default, specifying the nature
 and existence thereof and what action the Borrower proposes to take with
 respect thereto, (ii) the occurrence of any of the 

 

73

	
  

 	
  

 	
  

 
	
  

 	
 following
 with respect to the Borrower or any of its Subsidiaries (A) the pendency or
 commencement of any litigation, arbitration or governmental proceeding
 against the Borrower or any of its Subsidiaries which (x) would have or would
 reasonably be expected to have a Material Adverse Effect, or (y) would result
 in a significant liability to the Credit Parties or (B) material
 non-compliance with, or the institution of any proceedings against the
 Borrower or any of its Subsidiaries with respect to, or the receipt of
 written notice by such Person of potential liability or responsibility for
 violation, or alleged violation of, any Requirement of Law (including,
 without limitation, Environmental Laws) the violation of which would have or
 would reasonably be expected to have a Material Adverse Effect, (iii) any
 change to the Debt Rating of the Borrower, and (iv) any investigation or
 proceeding against the Borrower or any of its Subsidiaries to suspend, revoke
 or terminate, any Medicaid Provider Agreement, Medicare Provider Agreement,
 or exclusion from any Medical Reimbursement Program, which is reasonably
 expected to have a Material Adverse Effect. 

 
	
  

 	
  

 
	
  

 	
           (f)
 ERISA. Upon the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate obtaining knowledge
 thereof, such Person shall give written notice to the Administrative Agent
 and each of the Lenders promptly (and in any event within two Business Days)
 of the occurrence of any of the following events which has had or would be
 reasonably expected to have a Material Adverse Effect: (i) any Reportable
 Event, that constitutes an ERISA Event; (ii) with respect to any
 Multiemployer Plan, the receipt of notice as prescribed in ERISA or otherwise
 of any withdrawal liability assessed against the Borrower, any Subsidiary of
 the Borrower or any ERISA Affiliate, or of a determination that any
 Multiemployer Plan is in reorganization or insolvent (both within the meaning
 of Title IV of ERISA); (iii) the failure to make full payment on or before
 the due date (including extensions) thereof of all amounts which the
 Borrower, any Subsidiary of the Borrower or any ERISA Affiliate is required
 to contribute to each Plan pursuant to its terms and as required to meet the
 minimum funding standard set forth in ERISA and the Code with respect
 thereto; or (iv) any change in the funding status of any Plan that could have
 a Material Adverse Effect; in each case together with a description of any
 such event or condition or a copy of any such notice and a statement by an
 Authorized Officer of the Borrower briefly setting forth the details
 regarding such event, condition, or notice, and the action, if any, which has
 been or is being taken or is proposed to be taken by such Person with respect
 thereto. Promptly upon request, the Credit Parties shall furnish the
 Administrative Agent and the Lenders with such additional information
 concerning any Plan as may be reasonably requested, including, but not
 limited to, copies of each annual report/return (Form 5500 series), as well
 as all schedules and attachments thereto required to be filed with the
 Department of Labor and/or the Internal Revenue Service pursuant to ERISA and
 the Code, respectively, for each “plan year” (within the meaning of Section
 3(39) of ERISA).

 
	
  

 	
  

 
	
  

 	
           (g)
 Environmental 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 Subsequent to a written notice from any Governmental Authority that would
 reasonably be expected to result in a Material Adverse Effect, or during the
 existence of an Event of Default, and upon the written request of
 Administrative Agent, the Credit Parties will furnish or cause to be
 furnished to 

 

74

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the
 Administrative Agent, at the Credit Parties’ expense, a report of an
 environmental assessment of reasonable scope, form and depth, including,
 where appropriate, invasive soil or groundwater sampling, by a consultant
 reasonably acceptable to the Administrative Agent addressing the subject of
 such notice or, if during the existence of an Event of Default, regarding any
 release or threat of release of Hazardous Materials on any Property owned,
 leased or operated by a Credit Party and the compliance by the Credit Parties
 with Environmental Laws. If the Credit Parties fail to deliver such an
 environmental report within seventy-five (75) days after receipt of such
 written request, then the Administrative Agent may arrange for same, and the
 Credit Parties hereby grant to the Administrative Agent and its
 representatives access to the Real Properties and a license of a scope
 reasonably necessary to undertake such an assessment (including, where
 appropriate, invasive soil or groundwater sampling). The reasonable cost of
 any assessment arranged for by the Administrative Agent pursuant to this
 provision will be payable by the Credit Parties on demand.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 Each Credit Party will conduct and complete, or cause to be conducted and
 completed, all investigations, studies, sampling, and testing and all
 remedial, removal, and other actions necessary to address all Hazardous
 Materials on, from, or affecting any Real Properties to the extent necessary
 to be in compliance with all Environmental Laws and all other applicable
 federal, state, and local laws, regulations, rules and policies and with the
 orders and directives of all Governmental Authorities exercising jurisdiction
 over such Real Properties to the extent any failure would have or would
 reasonably be expected to have a Material Adverse Effect. 

 
	
  

 	
  

 
	
  

 	
           (h)
 Other Information. With reasonable promptness upon any such request,
 such other information regarding the business, properties or financial
 condition of the Borrower and its Subsidiaries as the Administrative Agent
 may reasonably request. 

 
	
  

 	
  

 
	
  

 	
           (i)
 Public/Private Information. The Borrower hereby acknowledges that (i)
 the Administrative Agent will make available to the Lenders materials and/or
 information provided by or on behalf of the Borrower hereunder (collectively,
 “Borrower Materials”) by posting the Borrower Materials on
 IntraLinks or another similar electronic system (the “Platform”) and
 (ii) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that
 do not wish to receive material non-public information with respect to the
 Borrower or its securities) (each, a “Public Lender”). The Borrower
 hereby agrees that (A) all Borrower Materials that are to be made available
 to the 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; (B) by marking Borrower Materials
 “PUBLIC”, the Borrower shall be deemed to have authorized the Administrative
 Agent and the Lenders to treat such Borrower Materials as either publicly
 available information or not material information (although it may be
 sensitive and proprietary) with respect to the Borrower or its securities for
 purposes of United States federal and state securities laws; (C) all Borrower
 Materials marked “PUBLIC” are permitted to be made available through a
 portion of the Platform designated as “Public”; and (D) the Administrative
 Agent shall be entitled to treat any 

 

75

	
  

 	
  

 
	
  

 	
 Borrower
 Materials that are not marked “PUBLIC” as being suitable only for posting on
 a portion of the Platform not marked “Public”. Notwithstanding the foregoing,
 the Borrower shall be under no obligation to mark any Borrower Materials
 “PUBLIC”. 

 
	
  

 	
  

 
	
  

 	
           (j)
 Electronic Delivery. Documents required to be delivered pursuant to
 Section 7.1(a) or (b) (to the extent any such documents are included in
 materials otherwise filed with the Securities and Exchange Commission) may be
 delivered electronically and if so delivered, shall be deemed to have been
 delivered on the date (i) on which the Borrower posts such documents, or
 provides a link thereto on the Borrower’s website on the Internet at the
 website address listed on Schedule 11.1 or (ii) on which such
 documents are posted on the Borrower’s behalf on an Internet or intranet
 website, if any, to which each Lender and the Administrative Agent have
 access (whether a commercial, third-party website or whether sponsored by the
 Administrative Agent); provided that: (A) the Borrower shall deliver
 paper copies of such documents to the Administrative Agent or any Lender that
 requests the Borrower to deliver such paper copies until a written request to
 cease delivering paper copies is given by the Administrative Agent or such
 Lender and (B) the Borrower shall notify (which may be 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, in every instance the Borrower shall be required
 to provide paper copies of the compliance certificates required by Section
 7.1(c) to the Administrative Agent. Except for such compliance certificates,
 the Administrative Agent shall have no obligation to request the delivery or
 to maintain copies of the documents referred to above, and in any event shall
 have no responsibility to monitor compliance by the Borrower with any such
 request for delivery, and each Lender shall be solely responsible for
 requesting delivery to it or maintaining its copies of such documents. 

 

                    7.2
Financial Covenants. 

	
  

 	
  

 
	
  

 	
           (a)
 Leverage Ratio. The Leverage Ratio, as of the last day of each fiscal
 quarter of the Borrower, shall be less than or equal to (x) 3.50 to 1.0
 through June 30, 2008 and (y) 3.25 to 1.0 thereafter. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Interest Coverage Ratio. The Interest Coverage Ratio, as of the last
 day of each fiscal quarter of the Borrower, shall be greater than or equal to
 3.5 to 1.0. 

 

                    7.3
Preservation of Existence and Franchises. 

          The
Borrower will, and will cause its Subsidiaries to, do all things necessary to
preserve and keep in full force and effect its existence, rights, franchises,
Intellectual Property and authority except as permitted by Section 8.4; provided
that neither the Borrower nor any of its Subsidiaries shall be required to
preserve any rights, franchises, Intellectual Property or authority if the
Borrower or such Subsidiary shall determine that the preservation thereof is no
longer desirable in the conduct of its business and if the loss thereof would
not have or would not reasonably be expected to have a Material Adverse Effect.

76

                    7.4
Books and Records. 

          The
Borrower will, and will cause its Subsidiaries to, keep complete and accurate
books and records of its transactions in order to produce its financial
statements in accordance with GAAP (including the establishment and maintenance
of appropriate reserves). 

                    7.5
Compliance with Law. 

          Except
to the extent the failure to do so would not have or would not reasonably be
expected to have a Material Adverse Effect, the Borrower will, and will cause
each of its Subsidiaries to, (a) comply with all Requirements of Law, and all
applicable restrictions imposed by all Governmental Authorities, applicable to
it and its Property (including, without limitation, Environmental Laws and
ERISA), (b) conform with and duly observe in all material respects all laws,
rules and regulations and all other valid requirements of any regulatory
authority with respect to the conduct of its business, including without
limitation, HIPAA, Medicare Regulations, Medicaid Regulations, and all laws,
rules and regulations of Governmental Authorities, pertaining to the business
of the Credit Parties; (c) obtain and maintain all licenses, permits,
certifications and approvals of all applicable Governmental Authorities as are
required for the conduct of its business as currently conducted and herein
contemplated, including without limitation professional licenses, CLIA certifications,
Medicare Provider Agreements and Medicaid Provider Agreements; (d) ensure that
(i) billing policies, arrangements, protocols and instructions will comply with
reimbursement requirements under Medicare, Medicaid and other Medical
Reimbursement Programs and will be administered by properly trained personnel;
(ii) medical director compensation arrangements and other arrangements with
referring physicians will comply with applicable state and federal
self-referral and anti-kickback laws, including without limitation 42 U.S.C.
Section 1320a-7b(b)(1) - (b)(2) 42 U.S.C. and 42 U. S. C. Section 1395nn; and
(iii) no event or related events occur that results in the exclusion of the
Borrower or any of its Subsidiaries from participation in any Medical Reimbursement
Program and (e) make commercially reasonable efforts to implement policies that
are consistent with HIPAA on or before the date that any Credit Party is
required to comply therewith. 

                    7.6
Payment of Taxes and Other Indebtedness. 

          The
Borrower will, and will cause its Subsidiaries to, pay, settle or discharge (a)
all material taxes, assessments and governmental charges or levies imposed upon
it, or upon its income or profits, or upon any of its properties, before they
shall become delinquent, (b) all material lawful claims (including claims for
labor, materials and supplies) which, if unpaid, might give rise to a Lien upon
any of its properties, and (c) all of its other material Indebtedness as it
shall become due (to the extent such repayment is not otherwise prohibited by
this Credit Agreement); provided, however, that a Credit Party shall not be required to
pay any such tax, assessment, charge, levy, claim or Indebtedness which is
being contested in good faith by appropriate proceedings and as to which
adequate reserves therefor have been established in accordance with GAAP,
unless the failure to make any such payment (i) would give rise to an immediate
right to foreclose or collect on a Lien securing such amounts or (ii) would
have or would reasonably be expected to have a Material Adverse Effect. 

77

                    7.7
Insurance. 

          The
Borrower will, and will cause each of its Subsidiaries to, at all times
maintain in full force and effect insurance (including worker’s compensation,
liability, casualty and business interruption insurance) with reputable
national companies that are not Affiliates of the Borrower (except to the
extent that self-insurance is maintained in reasonable amounts), in such
amounts, covering such risks and liabilities as is reasonable and prudent. 

                    7.8
Maintenance of Property. 

          The
Borrower will, and will cause its Subsidiaries to, maintain and preserve its
properties and equipment in good repair, working order and condition, normal
wear and tear excepted, and will make, or cause to be made, in such properties
and equipment from time to time all repairs, renewals, replacements,
extensions, additions, betterments and improvements thereto as may be needed or
proper, in each case to the extent and in the manner customary for companies in
similar businesses. 

                    7.9
Performance of Obligations. 

          Except
to the extent the failure to do so would not have or would not reasonably be
expected to have a Material Adverse Effect, the Borrower will, and will cause
its Subsidiaries to, perform all of its obligations under the terms of all
contracts, agreements or other agreements not evidencing Indebtedness to which
it is a party or by which it or its Properties may be bound. 

                    7.10
Use of Proceeds. 

          The
Borrower will use the proceeds of the Loans solely for the Transactions. The
Borrower will use the Letters of Credit solely for the purposes set forth in
Section 2.3(a). 

                    7.11
Audits/Inspections. 

          Upon
reasonable notice and during normal business hours, but not more than once per
calendar year, the Borrower will, and will cause each of its Subsidiaries to,
permit representatives appointed by the Administrative Agent or any Lender,
including, without limitation, independent accountants, agents, attorneys and
appraisers to visit and inspect the Borrower’s or any Subsidiary’s Property,
including its books and records, its accounts receivable and inventory, its
facilities and its other business assets, and to make photocopies or
photographs thereof and to write down and record any information such
representative obtains and shall permit the Administrative Agent, any Lender or
its representatives to investigate and verify the accuracy of information
provided to the Administrative Agent or the Lenders and to discuss all such
matters with the officers, employees and representatives of the Borrower and/or
its Subsidiaries; provided, however, during the existence
of a Default or Event of Default, the Administrative Agent and the Lenders may
request as many inspections as reasonable under the circumstances. Any expenses
incurred in connection with this Section 7.11 shall be for the account of the
Lenders unless an Event of Default exists in which case such expenses shall be
for the account of the Borrower. Any representatives appointed by the
Administrative Agent shall sign a confidentiality agreement reasonably
acceptable to the Borrower prior to any visit, investigation, inspection or
verification permitted by this Section 7.11. 

78

	
  

 	
  

 
	
  

 	
           7.12 Additional Credit Parties. 

 
	
  

 	
  

 
	
  

 	
           (a)
 At the time any Person becomes a Material Domestic Subsidiary or at the time
 any Subsidiary of the Borrower guaranties any Pari Passu Debt (if it is not
 already a Guarantor), the Borrower shall so notify the Administrative Agent
 and promptly thereafter (but in any event within 30 days) shall cause such
 Person to (i) execute a Joinder Agreement in substantially the same form as Exhibit
 7.12, thereby, among other things, causing such Person to become a
 Guarantor, and (ii) deliver such other documentation as the Administrative
 Agent may reasonably request in connection with the foregoing, including,
 without limitation, certified resolutions and other organizational and
 authorizing documents of such Person and favorable opinions of counsel to
 such Person (which shall cover, among other things, the legality, validity,
 binding effect and enforceability of the documentation referred to above),
 all in form, content and scope reasonably satisfactory to the Administrative
 Agent. 

 
	
  

 	
  

 
	
  

 	
           (b)
 If at any time Non-Material Domestic Subsidiaries own assets in an aggregate
 amount greater than five percent (5%) of Total Assets or produce revenues in
 an aggregate amount greater than five percent (5%) of the total revenues of
 the Borrower and its Subsidiaries on a consolidated basis, the Borrower will
 designate one or more Non-Material Domestic Subsidiaries to become a
 Guarantor (and such Non-Material Domestic Subsidiary shall become a Guarantor
 in accordance with clause (a) above) so that after giving effect to such
 designation and action, Non-Material Domestic Subsidiaries own assets in the
 aggregate of equal to or less than five percent (5%) of Total Assets and
 produce revenues in an aggregate amount equal to or less than five percent
 (5%) of the total revenues of the Borrower and its Subsidiaries on a
 consolidated basis. 

 
	
  

 	
  

 
	
  

 	
           7.13 Compliance Program. 

 

          The
Borrower will, and will cause each of its Domestic Subsidiaries that operates a
clinical laboratory to, maintain, and be operated in accordance with, a
compliance program which is reasonably designed to provide effective internal
controls that promote adherence to applicable federal and state law and the
program requirements of federal and state health plans, and which includes the
implementation of internal audits and monitoring on a regular basis to monitor
compliance with the requirements of the compliance program and applicable law,
regulations and company policies. 

SECTION 8

NEGATIVE COVENANTS

          Each
Credit Party hereby covenants and agrees that so long as this Credit Agreement
is in effect and until the Loans and LOC Obligations, together with interest,
fees and other obligations then due and payable hereunder, have been paid in
full and the Commitments and Letters of Credit hereunder shall have terminated:

79

                    8.1 Indebtedness. 

          The
Borrower will not permit any of its Subsidiaries to, contract, create, incur,
assume or permit to exist any Indebtedness, other than: 

	
  

 	
  

 
	
  

 	
           (a)
 Guaranty Obligations arising under this Credit Agreement and the other Credit
 Documents;

 
	
  

 	
  

 
	
  

 	
           (b)
 [Intentionally Omitted];

 
	
  

 	
  

 
	
  

 	
           (c)
 Indebtedness in respect of current accounts payable and accrued expenses
 incurred in the ordinary course of business;

 
	
  

 	
  

 
	
  

 	
           (d)
 Indebtedness owing by a Subsidiary of the Borrower to the Borrower or another
 Subsidiary of the Borrower;

 
	
  

 	
  

 
	
  

 	
           (e)
 purchase money Indebtedness (including Capital Leases) to finance the
 purchase of fixed assets (including equipment); provided that (i) the
 total of all such Indebtedness shall not exceed an aggregate principal amount
 of $100,000,000 (less any purchase money Indebtedness incurred by the
 Borrower) at any one time outstanding; (ii) such Indebtedness when incurred
 shall not exceed the purchase price of the asset(s) financed; and (iii) no
 such Indebtedness shall be refinanced for a principal amount in excess of the
 principal balance outstanding thereon at the time of such refinancing;

 
	
  

 	
  

 
	
  

 	
           (f) Indebtedness
 arising from Permitted Receivables Financings in an amount not to exceed
 $600,000,000, in the aggregate (less any Indebtedness incurred by the
 Borrower arising from Permitted Receivables Financings), at any one time
 outstanding;

 
	
  

 	
  

 
	
  

 	
           (g)
 Indebtedness evidenced by Hedging Agreements entered into in the ordinary
 course of business and not for speculative purposes;

 
	
  

 	
  

 
	
  

 	
           (h)
 Any guaranty of Indebtedness of the Borrower;

 
	
  

 	
  

 
	
  

 	
           (i)
 Indebtedness incurred after the Closing Date in connection with the
 acquisition of a Person or Property as long as such Indebtedness existed
 prior to such acquisition and was not created in anticipation thereof; 

 
	
  

 	
  

 
	
  

 	
           (j)
 Indebtedness existing on the date hereof as set forth on Schedule 8.1; 

 
	
  

 	
  

 
	
  

 	
           (k)
 Indebtedness incurred after the Closing Date by Foreign Subsidiaries in an
 amount not to exceed $400,000,000 (or the Dollar equivalent thereof) in the
 aggregate at any time outstanding; and

 
	
  

 	
  

 
	
  

 	
           (l)
 other unsecured Indebtedness in an amount not to exceed $200,000,000, in the
 aggregate, at any one time outstanding.

 

80

                    8.2 Liens. 

          The
Borrower will not, nor will it permit its Subsidiaries to, contract, create,
incur, assume or permit to exist any Lien with respect to any of its Property
of any kind (whether real or personal, tangible or intangible), whether now
owned or after acquired, other than Permitted Liens. 

                    8.3 Nature of Business. 

          The
Borrower will not, nor will it permit its Subsidiaries to, alter the character
of its business from that conducted as of the date hereof or engage in any
substantial manner in any business other than (a) the business conducted by the
Borrower and its Subsidiaries as of the date hereof and (h) other
healthcare-related businesses and businesses reasonably related thereto. 

                    8.4 Consolidation and Merger. 

          The
Borrower will not, nor will it permit any Subsidiary to, enter into any
transaction of merger or consolidation or liquidate, wind up or dissolve
itself, or suffer any such liquidation, wind-up or dissolution; provided that (subject to Sections
7.12 and 7.13) (a) a Subsidiary of the Borrower may merge into the Borrower or
another Subsidiary of the Borrower, (b) a Subsidiary of the Borrower may merge
or consolidate with another Person in a transaction otherwise permitted by
Section 8.5 or (c) the Borrower or a Subsidiary of the Borrower may merge or consolidate
with or into another Person if the following conditions are satisfied: 

	
  

 	
  

 
	
  

 	
           (i)
 if such transaction involves total consideration (cash and non-cash) in
 excess of $750,000,000, the Administrative Agent is given prompt written
 notice of such action; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 if the merger or consolidation involves a Credit Party, the surviving entity
 of such merger or consolidation shall either (A) be such Credit Party or (B)
 be a Subsidiary of the Borrower and expressly assume in writing all of the
 obligations of such Credit Party under the Credit Documents; provided that if the transaction
 is between the Borrower and another Person, the Borrower must be the
 surviving entity;

 
	
  

 	
  

 
	
  

 	
           (iii)
 the Credit Parties execute and deliver such documents, instruments and
 certificates as the Administrative Agent may reasonably request; and

 
	
  

 	
  

 
	
  

 	
           (iv)
 immediately after giving effect to such transaction, no Default or Event of
 Default shall have occurred and be continuing.

 
	
  

 
	
  

 	
 8.5 Sale or Lease of Assets.

 

          The
Borrower will not, nor will it permit its Subsidiaries to, convey, sell, lease,
transfer or otherwise voluntarily dispose of, in one transaction or a series of
transactions, all or any part of its business or assets whether now owned or
hereafter acquired, including, without limitation, inventory, receivables,
equipment, real property interests (whether owned or leasehold) and securities,
other than a sale, lease, transfer or other disposal of (a) subject to Sections
7.12 and 7.13, assets from the Borrower or one of its Subsidiaries to each
other; (b) inventory and supplies in the 

81

ordinary
course of business; (c) obsolete, surplus, slow-moving, idle or worn-out assets
no longer used or useful in the business of such Credit Party or the trade-in
of equipment for equipment in better condition or of better quality; (d) assets
which constitute a Permitted Investment in the ordinary course of business; (e)
Receivables pursuant to a Permitted Receivables Financing; (f) Investments in the
Strategic Investments Portfolio and (g) assets of the Borrower and its
Subsidiaries, in addition to those permitted above in this Section 8.5; provided
that in the case of this clause (g) (i) no Event of Default exists prior to
such transfer, (ii) no Default or Event of Default exists after giving effect
to such transfer and (iii) after giving effect to such transfer, the aggregate
amount of all such transfers, calculated on a net book value basis, does not
exceed ten percent (10%) of Total Assets, as determined on the last day of the
most recently ended fiscal quarter of the Borrower for which an officer’s
certificate has been delivered pursuant to Section 7.1(c). 

                    8.6 Investments.

          The
Borrower will not, nor will it permit its Subsidiaries to, make or permit to
exist any Investments except for Permitted Investments. 

                    8.7 Transactions
with Affiliates. 

          The
Borrower will not, nor will it permit its Subsidiaries to, enter into any
transaction or series of transactions, whether or not in the ordinary course of
business, with any officer, director, shareholder, Subsidiary or Affiliate
other than on terms and conditions substantially as favorable as would be
obtainable in a comparable arm’s-length transaction with a Person other than an
officer, director, shareholder, Subsidiary or Affiliate, except that,
notwithstanding the foregoing, each of the following shall be permitted: (a)
transactions between or among the Credit Parties; (b) transactions between or
among the Borrower and its wholly owned Subsidiaries as long as such
transaction is not disadvantageous to the Lenders in any material respect; (c)
transactions between or among the Borrower or one or more of its wholly owned
Subsidiaries (on the one hand) and one of the non-wholly owned Subsidiaries of
the Borrower (on the other hand) as long as none of the equity of such
non-wholly owned Subsidiary is owned or controlled by an officer or director of
any Credit Party; (d) advances to employees permitted by clause (f) of the
definition of Permitted Investments; (e) Dividends; (f) fees, compensation and
other benefits paid to, and customary indemnity and reimbursement provided on
behalf of, officers, directors and employees of any Credit Party in the ordinary
course of business; (g) any employment agreements entered into by the Borrower
or any of its Subsidiaries in the ordinary course of business; (h) any
Permitted Receivables Financing; and (i) transactions and agreements in
existence on the date hereof and listed on Schedule 8.7 and, in each case, any
amendment thereto, that is not disadvantageous to the Lenders in any material
respect. 

                    8.8 Fiscal
Year; Accounting; Organizational Documents. 

          The
Borrower will not, nor will it permit its Subsidiaries to, unless such action
(i) would not affect the calculation of the financial covenants in Section 7.2
and (ii) would not or would not reasonably be likely to affect the rights of
the Lenders under the Credit Documents: (a) change its fiscal year other than
changing the fiscal year of a Subsidiary of the Borrower to a calendar year 

82

end, (b) change its
accounting procedures, except as a result of changes in GAAP and in accordance
with Section 1.3 or (c) change its organizational or governing documents. 

                    8.9 Stock Repurchases. 

          The
Borrower will not, nor will it permit its Subsidiaries to, directly or
indirectly, purchase, redeem or otherwise acquire or retire or make any
provisions for redemption, acquisition or retirement of any shares of the
Capital Stock of the Borrower of any class or any warrants or options to
purchase any such shares (collectively, a “Stock Repurchase”); provided
that the Borrower or its Subsidiaries may consummate Stock Repurchases as long
as on the date of such Stock Repurchase and after giving effect to such Stock
Repurchase no Default or Event of Default exists and is continuing. 

                    8.10 Sale/Leasebacks.

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 Except as set forth in clause (b) below, the Borrower will not, and will not
 permit any Subsidiary to, enter into any Sale and Leaseback Transaction with
 respect to any Principal Property unless: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 the Sale and Leaseback Transaction is solely with the Borrower or a Guarantor;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 the lease is for a period not in excess of five years, including renewal
 rights; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 prior to or within 270 days after the completion of the sale of such
 Principal Property in connection with the Sale and Leaseback Transaction, the
 Borrower or its Subsidiary applies the net cash proceeds of the sale of such
 Principal Property to: (A) the prepayment of (1) the Term Loans and, once the
 principal amount of Term Loans has been repaid in full, to the prepayment of
 the Revolving Loans (with a corresponding permanent reduction in the
 Revolving Committed Amount) or (2) debt ranking equally with the Loans; or (B) the acquisition of different property, facilities or equipment or the
 expansion of the Borrower and its Subsidiaries’ existing business, including
 the acquisition of other businesses. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (b)
 In addition to the Sale and Leaseback
 Transactions permitted by clause (a) above, the Borrower or any of its
 Subsidiaries may enter into any Sale and Leaseback Transactions if all
 Attributable Debt (measured, in each case, at the time such Sale and
 Leaseback Transaction is entered into by the Borrower or its Subsidiary) in
 respect of such Sale and Leaseback Transactions (not including any Sale and
 Leaseback Transactions permitted under clause (a) above), in the aggregate,
 does not exceed 5% of Total Assets. 

 

SECTION 9

EVENTS OF DEFAULT

83

                    9.1 Events
of Default. 

          An
Event of Default shall exist upon the occurrence, and during the continuation,
of any of the following specified events (each an “Event of Default”): 

	
  

 	
  

 	
  

 
	
  

 	
           (a) Payment. Any Credit Party shall default in the payment (i) when due
 of any principal of any of the Loans or any reimbursement obligation arising
 from drawings under Letters of Credit, whether hereunder, under any Guaranty
 or otherwise, or (ii) within three Business Days of when due of any interest
 on the Loans or any fees or other amounts owing hereunder, under any Guaranty
 or other Credit Documents or in connection herewith or therewith. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (b) Representations. Any representation, warranty or
 statement made or deemed to be made by any Credit Party herein, in any of the
 other Credit Documents, or in any statement or certificate delivered or
 required to be delivered pursuant hereto or thereto shall prove untrue in any
 material respect on the date as of which it was made or deemed to have been
 made. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (c) Covenants. Any Credit Party shall: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 default in the due performance or observance of any term, covenant or
 agreement contained in Sections 7.2, 7.3, 7.10, or 7.12 or Section 8
 inclusive;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 default in the due performance or observance by it of any term, covenant or
 agreement contained in Section 7.1 (excepting Section 7.1(e) for which the
 unremedied period shall only be five Business Days) and 7.11 and such default
 shall continue unremedied for a period of ten Business Days; or

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 default in the due performance or observance by it of any term, covenant or
 agreement (other than those referred to in subsections (a), (b) or (c)(i) or
 (ii) of this Section 9.1) contained in this Credit Agreement and such default
 shall continue unremedied for a period of at least 30 days after the earlier
 of an Authorized Officer of the Borrower becoming aware of such default or
 notice thereof given by the Administrative Agent.

 
	
  

 	
  

 	
  

 
	
  

 	
           (d) Other Credit Documents. (i) Any Credit Party shall default
 in the due performance or observance of any term, covenant or agreement in
 any of the other Credit Documents and such default shall continue unremedied
 for a period of at least 30 days after the earlier of an Authorized Officer
 of the Borrower becoming aware of such default or notice thereof given by the
 Administrative Agent, (ii) any Credit Document shall fail to be in full force
 and effect or any Credit Party shall so assert or (iii) any Credit Document
 shall fail to give the Administrative Agent and/or the Lenders the rights, powers
 and privileges purported to be created by such Credit Document. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (e) Guaranties. The guaranty given by the Credit
 Parties hereunder or by any Additional Credit Party or material provision
 thereof shall cease to be in full force and effect, or any Guarantor or any
 Person acting by or on behalf of such Guarantor shall 

 

84

	
  

 	
  

 
	
  

 	
 deny or
 disaffirm such Guarantor’s obligations under such guaranty or such Guarantor
 shall default in the due payment or performance of such guaranty.

 
	
  

 	
  

 
	
  

 	
           (f) Bankruptcy,
 etc. The occurrence of any of the following with respect to a
 Credit Party (i) a court or governmental agency having jurisdiction in the
 premises shall enter a decree or order for relief in respect of a Credit
 Party in an involuntary case under any applicable bankruptcy, insolvency or
 other similar law now or hereafter in effect, or appoint a receiver,
 liquidator, assignee, custodian, trustee, sequestrator, administrator or
 similar official of a Credit Party or for any substantial part of its
 Property or ordering the winding up or liquidation of, or an administrator in
 respect of, its affairs; or (ii) an involuntary case under any applicable
 bankruptcy, insolvency or other similar law now or hereafter in effect is
 commenced against a Credit Party and such petition remains unstayed and in
 effect for a period of 60 consecutive days; or (iii) a Credit Party shall
 commence a voluntary case under any applicable bankruptcy, insolvency or
 other similar law now or hereafter in effect, or consent to the entry of an
 order for relief in an involuntary case under any such law, or consent to the
 appointment or taking possession by a receiver, liquidator, assignee,
 custodian, trustee, sequestrator, administrator or similar official of such
 Person or any substantial part of its Property or make any general assignment
 for the benefit of creditors; or (iv) a Credit Party shall fail generally, or
 shall admit in writing its inability, to pay its debts as they become due or
 any action shall be taken by such Person in furtherance of any of the
 aforesaid purposes. 

 
	
  

 	
  

 
	
  

 	
           (g) Defaults
 under Other Indebtedness. With respect to any Indebtedness in
 excess of $150,000,000 (other than Indebtedness outstanding under this Credit
 Agreement) of the Borrower or any of its Subsidiaries (A) such Person shall
 (x) default in any payment (beyond the applicable grace period with respect
 thereto, if any) with respect to any such Indebtedness, or (y) default (after
 giving effect to any applicable grace period) in the observance or
 performance of any covenant or agreement relating to such Indebtedness or
 contained in any instrument or agreement evidencing, securing or relating
 thereto, or any other event or condition shall occur or condition exist, the
 effect of which default or other event or condition is to cause, or permit,
 the holder or holders of such Indebtedness (or trustee or agent on behalf of
 such holders, if any) to require (determined without regard to whether any
 notice or lapse of time is required) any such Indebtedness to become due
 prior to its stated maturity; or (B) any such Indebtedness shall be declared
 due and payable, or required to be prepaid other than by a regularly
 scheduled required prepayment prior to the stated maturity thereof; or (C)
 any such Indebtedness shall mature and remain unpaid. 

 
	
  

 	
  

 
	
  

 	
           (h) Judgments.
 One or more judgments, orders, or decrees shall be entered against any one or
 more of the Borrower and its Subsidiaries involving a liability of
 $150,000,000 or more, in the aggregate, (to the extent not paid, covered by
 insurance provided by a carrier who has acknowledged coverage or covered by
 an indemnification from Corning Incorporated or SmithKline Beecham PLC) and
 such judgments, orders or decrees (i) are the subject of any enforcement
 proceeding commenced by any creditor or (ii) shall continue unsatisfied,
 undischarged and unstayed for a period ending on the first to occur of (A)
 the last day on which such judgment, order or decree becomes final and
 unappealable or (B) 60 days.

 

85

	
  

 	
           (i) ERISA.
 The occurrence of any of the following events or conditions which
 individually or in the aggregate has had or would reasonably be expected to
 have a Material Adverse Effect: (i) any “accumulated funding deficiency,” as
 such term is defined in Section 302 of ERISA and Section 412 of the Code,
 whether or not waived, shall exist with respect to any Plan, other than a
 Multiemployer Plan, or any Lien shall arise on the assets of the Borrower,
 any Subsidiary of the Borrower or any ERISA Affiliate in favor of the PBGC or
 a Plan, other than a Multiemployer Plan; (ii) an ERISA Event shall occur with
 respect to a Single Employer Plan, which is reasonably likely to result in
 the termination of such Plan for purposes of Title IV of ERISA; (iii) an
 ERISA Event shall occur with respect to a Multiemployer Plan or Multiple
 Employer Plan, which is reasonably likely to result in (A) the termination of
 such plan for purposes of Title IV of ERISA, or (B) the Borrower, any
 Subsidiary of the Borrower or any ERISA Affiliate incurring any liability in
 connection with a withdrawal from, reorganization of (within the meaning of
 Section 4241 of ERISA), or insolvency (within the meaning of Section 4245 of
 ERISA) of such plan; (iv) any prohibited transaction (within the meaning of
 Section 406 of ERISA or Section 4975 of the Code) or breach of fiduciary
 responsibility shall occur which may subject the Borrower, any Subsidiary of
 the Borrower or any ERISA Affiliate to any liability under Sections 406, 409,
 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under any
 agreement or other instrument pursuant to which the Borrower, any Subsidiary
 of the Borrower or any ERISA Affiliate has agreed or is required to indemnify
 any Person against any such liability; or (v) the Borrower, any Subsidiary of
 the Borrower or any ERISA Affiliate fails to pay when due, after the
 expiration of any applicable grace period, any installment payment with
 respect to its withdrawal liability under Section 4201 of ERISA under a
 Multiemployer Plan in an aggregate amount in excess of $150,000,000. 

 
	
  

 	
  

 
	
  

 	
           (j) Ownership.
 There shall occur a Change of Control. 

 
	
  

 	
  

 
	
  

 	
           (k) Borrower
 Material Adverse Effect. Any event or other circumstance shall have
 occurred or come into effect on or prior to the Closing Date which shall have
 resulted in a Material Adverse Effect which shall be continuing on the 45th
 day following the Closing Date.

 
	
  

 	
  

 
	
  

 	
           9.2 Acceleration; Remedies. 

 
	
  

 	
  

 
	
           Upon
 the occurrence and during the continuation of an Event of Default, the
 Administrative Agent may or shall, upon the request and direction of the
 Required Lenders, take the following actions without prejudice to the rights
 of the Administrative Agent or any Lender to enforce its claims against the
 Credit Parties, except as otherwise specifically provided for herein:

 
	
  

 	
  

 
	
  

 	
           (a) Termination
 of Commitments. Declare the Commitments terminated whereupon the
 Commitments shall be immediately terminated. 

 
	
  

 	
  

 
	
  

 	
           (b) Acceleration
 of Loans. Declare the unpaid principal of and any accrued interest in
 respect of all Loans, any reimbursement obligations arising from drawings
 under Letters of Credit and any and all other Indebtedness or obligations of
 any and every kind owing by a Credit Party to any of the Lenders under the
 Credit Documents to be due

 

86

	
  

 	
  

 
	
  

 	
 whereupon
 the same shall be immediately due and payable without presentment, demand,
 protest or other notice of any kind, all of which are hereby waived by the
 Credit Parties.

 
	
  

 	
  

 
	
  

 	
           (c) Cash
 Collateral. Direct the Borrower to pay (and the Borrower agrees that upon
 receipt of such notice, or upon the occurrence of an Event of Default under
 Section 9.1(f), it will immediately pay) to the Administrative Agent
 additional cash, to be held by the Administrative Agent, for the benefit of
 the Lenders, in a cash collateral account as additional security for the LOC
 Obligations in respect of subsequent drawings under all then outstanding
 Letters of Credit in an amount equal to the maximum aggregate amount which
 may be drawn under all Letters of Credits then outstanding. 

 
	
  

 	
  

 
	
  

 	
           (d) Enforcement
 of Rights. To the extent permitted by law, enforce any and all rights and
 interests created and existing under the Credit Documents, including, without
 limitation, all rights and remedies against a Guarantor and all rights of
 set-off.

 

Notwithstanding
the foregoing, if an Event of Default specified in Section 9.1(f) shall occur,
then the Commitments shall automatically terminate and all Loans, all
reimbursement obligations under Letters of Credit, all accrued interest in
respect thereof, all accrued and unpaid fees and other indebtedness or
obligations owing to the Lenders hereunder shall immediately become due and
payable without the giving of any notice or other action by the Administrative
Agent or the Lenders, which notice or other action is expressly waived by the
Credit Parties. 

Notwithstanding
the fact that enforcement powers reside primarily with the Administrative
Agent, each Lender has, to the extent permitted by law, a separate right of
payment and shall be considered a separate “creditor” holding a separate
“claim” within the meaning of Section 101(5) of the Bankruptcy Code or any
other insolvency statute. 

                    9.3 Allocation
of Payments After Event of Default. 

          Notwithstanding
any other provisions of this Credit Agreement, after the exercise of any
remedies by the Administrative Agent or the Lenders pursuant to Section 9.2 (or
after any Event of Default that causes the Commitments to terminate and/or all
of the Credit Party Obligations to be due hereunder), all amounts collected or
received by the Administrative Agent or any Lender on account of amounts
outstanding under any of the Credit Documents shall be paid over or delivered
as follows: 

          FIRST,
to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation reasonable Attorney Costs) of the Administrative Agent or
any of the Lenders in connection with enforcing the rights of the Lenders under
the Credit Documents, pro rata as set forth below; 

          SECOND,
to payment of any fees owed to the Administrative Agent, the Issuing Lender,
the Swing Line Lender or any Lender, pro rata as set forth below; 

          THIRD, to the payment of all accrued
interest payable to the Lenders hereunder, pro rata as set forth below; 

87

          FOURTH,
to the payment of the outstanding principal amount of the Loans and
unreimbursed drawings under Letters of Credit, and to the payment or cash
collateralization of the outstanding LOC Obligations, pro rata as set forth
below; 

          FIFTH,
to all other obligations which shall have become due and payable under the
Credit Documents and not repaid pursuant to clauses “FIRST” through “FOURTH”
above; and 

          SIXTH,
to the payment of the surplus, if any, to whoever may be lawfully entitled to
receive such surplus. 

In carrying
out the foregoing, (a) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category;
(b) each of the Lenders shall receive an amount equal to its pro rata share
(based on the proportion that the then outstanding Loans, and LOC Obligations
held by such Lender bears to the aggregate then outstanding Loans and LOC
Obligations of amounts available to be applied; and (c) to the extent that any
amounts available for distribution pursuant to clause “FOURTH” above are
attributable to the issued but undrawn amount of outstanding Letters of Credit,
such amounts shall be held by the Administrative Agent in a cash collateral
account and applied (i) first, to reimburse the Issuing Lender from time to
time for any drawings under such Letters of Credit and (ii) then, following the
expiration of all Letters of Credit, to all other obligations of the types
described in clauses “FOURTH” and “FIFTH” above in the manner provided in this
Section 9.3. 

SECTION 10

AGENCY PROVISIONS

                    10.1 Appointment. 

	
  

 	
  

 
	
  

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

 

88

	
  

 	
  

 
	
  

 	
           (b)
 The Issuing Lender shall act on behalf of the Lenders with respect to any Letters
 of Credit issued by it and the documents associated therewith until such time
 (and except for so long) as the Administrative Agent may agree at the request
 of the Required Lenders to act for the Issuing Lender with respect thereto; provided,
 however, that the Issuing Lender shall have all of the benefits and
 immunities (i) provided to the Administrative Agent in this Section 10 with
 respect to any acts taken by or omissions of the Issuing Lender in connection
 with Letters of Credit issued by it or proposed to be issued by it and the
 application and agreements for letters of credit pertaining to the Letters of
 Credit as fully as if the term “Administrative Agent” as used in this Section
 10 included the Issuing Lender with respect to such acts or omissions, and
 (ii) as additionally provided herein with respect to the Issuing Lender. 

 
	
  

 	
  

 
	
  

 	
           (c)
 Each of (1) Morgan Stanley in its capacity as Syndication Agent and (ii)
 Barclays Bank PLC, JPMorgan Chase Bank, N.A., Merrill Lynch Bank, USA and
 Wachovia Bank, National Association in their capacities as Co-Documentation
 Agents shall have no duties or obligations whatsoever under this Credit
 Agreement or the other Credit Documents. 

 
	
  

 	
  

 
	
  

 	
           10.2 Delegation of Duties.

 
	
  

 	
  

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

 
	
  

 	
  

 
	
  

 	
           10.3 Exculpatory
 Provisions.

 
	
  

 	
  

 
	
           No
 Agent-Related Person shall (a) be liable for any action taken or omitted to
 be taken by any of them under or in connection with this Credit Agreement or
 any other Credit Document or the transactions contemplated hereby (except for
 its own gross negligence or willful misconduct in connection with its duties
 expressly set forth herein), or (b) be responsible in any manner to any
 Lender or participant for any recital, statement, representation or warranty
 made by any Credit Party or any officer thereof, contained herein or in any other
 Credit Document, or in any certificate, report, statement or other document
 referred to or provided for in, or received by the Administrative Agent under
 or in connection with, this Credit Agreement or any other Credit Document, or
 the validity, effectiveness, genuineness, enforceability or sufficiency of
 this Credit Agreement or any other Credit Document, or for any failure of any
 Credit Party or any other party to any Credit Document to perform its
 obligations hereunder or thereunder. No Agent-Related Person shall be under
 any obligation to any Lender or participant to ascertain or to inquire as to
 the observance or performance of any of the agreements contained in, or
 conditions of, this Credit Agreement or any other Credit Document, or to
 inspect the properties, books or records of any Credit Party or any Affiliate
 thereof.

 

89

                    10.4 Reliance on Communications.

	
  

 	
  

 
	
  

 	
           (a) The
 Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing,
 communication, signature, resolution, representation, notice, consent,
 certificate, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document
 or conversation believed by it to be genuine
 and correct and to have been signed, sent or made by the proper Person or
 Persons, and upon advice and statements of legal counsel (including counsel
 to any Credit Party), independent accountants and other experts
 selected by the Administrative Agent. The
 Administrative Agent may deem and treat each Lender as the owner of its interests
 hereunder for all purposes unless a written notice of assignment, negotiation
 or transfer thereof shall have been
 delivered to the Administrative Agent in accordance with Section
 11.3(b). The Administrative Agent shall be fully justified in failing or
 refusing to take any action under any
 Credit Document unless it shall first receive such advice or concurrence
 of the Required Lenders as it deems appropriate and, if it so requests, it
 shall first be indemnified to its satisfaction by the Lenders against any and
 all liability and expense which may be incurred by it by reason of taking or
 continuing to take any such action. The Administrative Agent shall in all
 cases be fully protected in acting, or in refraining
 from acting, under this Credit Agreement or any other Credit Document in accordance with a request or consent of the
 Required Lenders or all the Lenders, if required hereunder, and such request
 and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders
 and participants, and their respective successors and assigns. Where this Credit Agreement expressly permits
 or prohibits an action unless the Required Lenders otherwise
 determine, the Administrative Agent shall, and in all other instances, the
 Administrative Agent may, but shall not be required to, initiate any
 solicitation for the consent or a vote of the Lenders.

 
	
  

 	
  

 
	
  

 	
           (b) For purposes of determining compliance with the
 conditions specified in Section
 5.1, each Lender that has signed this Credit Agreement shall be deemed to
 have consented to, approved or
 accepted or to be satisfied with, each document or other matter either sent by the Administrative Agent to such
 Lender for consent, approval, acceptance or satisfaction, or required thereunder to be consented to or
 approved by or acceptable or satisfactory to a Lender.

 

                    10.5 Notice of Default.

          The
Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default,
except with respect to defaults in the payment of principal, interest and fees
required to be paid to the Administrative Agent for the account of the Lenders, unless the Administrative Agent shall
have received written notice from a Lender or the Borrower referring to this Credit Agreement, describing
such Default or Event of Default and stating
that such notice is a “notice of default.” The Administrative Agent will notify
the Lenders of its receipt of any
such notice. The Administrative Agent shall take such action with respect to such Default or Event of Default as may
be reasonably directed by the Required Lenders
in accordance with Section 9.2; provided, however, that unless and until the Administrative
Agent has received any such direction, the Administrative Agent may (but shall 

90

not be
obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable or in
the best interest of the Lenders.

                    10.6 Non-Reliance on
Administrative Agent and Other Lenders.

          Each Lender
acknowledges that no Agent-Related Person has made any representation or warranty to it, and that no act by the
Administrative Agent hereinafter taken, including any consent to and
acceptance of any assignment or review of the affairs of any Credit Party or
any Affiliate thereof, shall be deemed to constitute any representation or
warranty by any Agent-Related Person to any Lender as to any matter, including
whether Agent-Related Persons have disclosed material information in their
possession. Each Lender represents to the Administrative Agent that it has, independently and without
reliance upon any Agent-Related Person or any other Lender and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, Property, financial and other condition and creditworthiness of the Credit Parties and their
respective Affiliates, and all
applicable bank or other regulatory laws relating to the transactions
contemplated hereby, and made its own decision to enter into this Credit
Agreement and to extend credit to the Borrower hereunder. Each Lender also
represents that it will, independently and without reliance upon any Agent-Related
Person 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 analysis, appraisals and decisions in taking or not taking action under this Credit Agreement and
the other Credit Documents, and to
make such investigations as it deems necessary to inform itself as to the business, prospects, operations, Property,
financial and other condition and creditworthiness of the Borrower. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent herein, the Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, prospects, operations, Property, financial and
other condition or creditworthiness of
any of the Credit Parties or any of their respective Affiliates which may come into the possession of any Agent-Related
Person.

91

                    10.7 Indemnification.

          To the
extent that the Borrower for any reason fails to indefeasibly pay any amount
required under Section 11.5 to be paid by it to the Administrative Agent (or
any sub-agent thereof), the Issuing Lender or any Agent-Related
Person of any of the foregoing, each Lender severally agrees to pay to the
Administrative Agent (or any such sub-agent), the Issuing Lender or such Agent-Related Person, as the case may be,
such Lender’s Revolving Loan Commitment Percentage and/or Term Loan Commitment Loan Percentage, as applicable,
(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
Issuing Lender in its capacity as such, or against any Agent-Related Person of
any of the foregoing acting for the Administrative Agent (or any such
sub-agent) or Issuing Lender in connection with such capacity. 

                    10.8
Administrative Agent in Its Individual
Capacity.

          Bank of
America and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests
in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with each of the
Credit Parties and their respective Affiliates as though Bank of America were
not the Administrative Agent or the
Issuing Lender hereunder and without notice to or consent of the Lenders. The
Lenders acknowledge that, pursuant to such activities, Bank of America
or its Affiliates may receive information
regarding any Credit Party or its Affiliates (including information that may be
subject to confidentiality
obligations in favor of such Credit Party or such Affiliate) and that the Administrative Agent shall be under no obligation
to provide such information to them. With respect to its Loans, Bank of
America shall have the same rights and powers under this Credit Agreement as
any other Lender and may exercise such rights and powers as though it were not
the Administrative Agent or the Issuing Lender, and the terms “Lender” and
“Lenders” include Bank of America in its
individual capacity.

                    10.9 Successor
Agent.

          The
Administrative Agent may resign as Administrative Agent upon 30 days’ notice to
the Lenders. If the
Administrative Agent resigns under this Credit Agreement, the Required Lenders
shall appoint from among the Lenders a successor administrative agent for the
Lenders which successor administrative agent
(such appointment, absent the existence of an Event of Default, to be subject to the consent of the Borrower, which consent of the Borrower shall not be unreasonably withheld or delayed). If no
successor administrative agent is appointed prior to the effective date of the resignation of the
Administrative Agent, the Administrative Agent may appoint, after consulting with the Lenders and the Borrower, a successor administrative agent from among the
Lenders. Upon the acceptance of its
appointment as successor administrative agent hereunder, such successor
administrative agent shall succeed to all the rights, powers and duties of the retiring Administrative Agent and
the term “Administrative Agent” shall mean such successor administrative
agent and the retiring Administrative Agent’s appointment, powers and duties as Administrative Agent shall be
terminated. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the
provisions of this Section 10 and Sections

92

11.5 and 11.10 shall continue to inure to its benefit as to any actions
taken or omitted to be taken by
it while it was Administrative Agent under this Credit Agreement. If no
successor administrative agent has
accepted appointment as Administrative Agent by the date which is 30 days following a retiring Administrative Agent’s
notice of resignation, the retiring Administrative
Agent’s resignation shall nevertheless thereupon become effective and the Lenders
shall perform all of the duties of the Administrative Agent hereunder until
such time, if any, as the Required Lenders appoint a successor agent as
provided for above.

                    10.10
Agent May File Proofs of Claim.

          In case of
the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Borrower or any of its Subsidiaries, the Administrative
Agent (irrespective of whether the principal
of any Loan shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether the Administrative Agent shall have
made any demand on the 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 and all other Credit Party Obligations
 that are owing and unpaid and to file such
 other documents as may be necessary or advisable in order to have the claims of the Lenders and the
 Administrative Agent (including any claim for the reasonable
 compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their
 respective agents and counsel and all other amounts due the Lenders
 and the Administrative Agent) 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 to
make such payments to the Administrative
Agent and, in the event that the Administrative Agent shall consent to the
making of such payments directly to the Lenders, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative
Agent under the Credit Documents.

          Nothing
contained herein shall be deemed to authorize the Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or
composition affecting the Credit Party 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.

SECTION 11

MISCELLANEOUS

93

                    11.1
Notices Etc.

	
  

 	
  

 
	
  

 	
           (a) General.
Unless otherwise expressly provided herein, all notices and other communications provided for hereunder shall be in
writing (including by facsimile transmission).
All such written notices shall be mailed certified or registered mail, faxed or delivered to the applicable address,
facsimile number or (subject to subsection (c) below) electronic mail
address, and all notices and other communications expressly permitted
hereunder to be given by telephone shall be made to the applicable telephone
number, as follows: 

 

	
  

 	
  

 
	
  

 	
           (i) if to
 a Credit Party or the Administrative Agent to the address, facsimile
 number, electronic mail address or telephone number specified for such Person on Schedule 11.1 or to such other address, facsimile number,
 electronic mail address or telephone number as shall be designated by
 such party in a notice to the other parties; and

 
	
  

 	
  

 
	
  

 	
           (ii) if
 to any other Lender, to the address, facsimile number, electronic mail
 address or telephone number specified in its administrative questionnaire provided by the Administrative Agent or to such
 other address, facsimile number, electronic mail address or telephone
 number as shall be designated by such party in a notice to such Credit Party
 and the Administrative Agent.

 

	
  

 	
  

 
	
  

 	
           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 facsimile 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
 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 pursuant to Section
 2 if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such
 Section 2 by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to
 accept notices and other
 communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval
 of such procedures may be limited to particular
 notices or communications. Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
 sent to an e-mail address shall be deemed
 received upon the sender’s receipt of an acknowledgement from the intended recipient
 (such as by the “return receipt requested” function, as available, return
 e-mail or other written acknowledgement), provided that if such
 notice or other communication is not sent during the normal business hours of
 the recipient, such notice or communication shall be deemed to have been sent
 at the opening of business on the next business day for the recipient, and
 (ii) notices or communications posted to an Internet or intranet website

 

94

	
  

 	
  

 
	
  

 	
 shall be
 deemed received upon the deemed receipt by the intended recipient at its
 e-mail address as described in the
 foregoing clause (i) of notification that such notice or communication
 is available and identifying the website address therefor.

 
	
  

 	
  

 
	
  

 	
           (c) The
Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT-RELATED PERSONS DO NOT
WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM
LIABILITY FOR ERRORS IN OR OMISSIONS
FROM THE BORROWER MATERIALS. NO WARRANTY
OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY
ANY AGENT- RELATED PERSON IN CONNECTION WITH THE BORROWER MATERIALS OR
THE PLATFORM. In no event shall the
Agent-Related Persons have any liability to the Borrower, any Lender or any other Person for
losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising
out of the Borrower’s or the
Administrative Agent’s transmission of Borrower Materials through the
Internet, except to the extent that such losses, claims, damages, liabilities
or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Agent-Related Person; provided, however, that in no event shall any
Agent-Related Person have any
liability to the Borrower, any Lender or any other Person for indirect,
special, incidental, consequential or punitive damages {as opposed to direct
or actual damages).  

 
	
  

 	
  

 
	
  

 	
           (d) Effectiveness
 of Facsimile Documents and Signatures. Credit Documents may be transmitted and/or signed by facsimile.
 The effectiveness of any such documents and signatures shall, subject to applicable law, have the same force
 and effect as manually-signed
 originals and shall be binding on the Borrower, the Administrative Agent and the Lenders. The Administrative Agent
 may also require that any such documents
 and signatures be confirmed by a manually-signed original thereof; provided,
 however, that the failure to request or deliver the same shall
 not limit the effectiveness of any facsimile document or signature.

 
	
  

 	
  

 
	
  

 	
           (e) Reliance by Administrative Agent and Lenders. The Administrative Agent and the Lenders shall be entitled to rely
 and act upon any notices (including telephonic notices) purportedly
 given by or on behalf of a Credit Party even if (i) such notices were not made in a manner specified
 herein, were incomplete or were not preceded
 or followed by any other form of notice specified herein, or (ii) the terms thereof,
 as understood by the recipient, varied from any confirmation thereof. The
 Credit Parties shall indemnify each
 Agent-Related Person and each Lender from all losses, costs, expenses and liabilities resulting from
 the reliance by such Person on each notice purportedly given by or on
 behalf of a Credit Party. All telephonic notices to and other communications with the Administrative Agent may
 be recorded by the Administrative Agent, and each of the parties hereto
 hereby consents to such recording.

 

95

	
  

 	
  

 
	
  

 	
           (f)
 Change of Address, Etc. Each of the Borrower, the Administrative
 Agent, the Issuing Lender and the Swing
 Line Lender may change its address, telecopier or telephone number for
 notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its
 address, telecopier or telephone number
 for notices and other communications hereunder by notice to the Borrower, the
 Administrative Agent, the Issuing Lender and the Swing Line Lender. In
 addition, each Lender agrees to notify the Administrative Agent from time to
 time to ensure that the Administrative
 Agent has on record (i) an effective address, 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 Borrower Materials 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 the Borrower or its securities for purposes of United States
 Federal or state securities laws.

 

                    11.2
Right of Set-Off.

          In addition
to any rights now or hereafter granted under applicable law or otherwise, and not
by way of limitation of any
such rights, upon the occurrence of an Event of Default and the commencement of remedies described in Section 9.2,
each Lender is authorized at any time and from time to time, without presentment, demand, protest or other notice
of any kind (all of which rights
being hereby expressly waived), to set-off and to appropriate and apply any and
all deposits (general or special) and
any other indebtedness at any time held or owing by such Lender (including,
without limitation, branches, agencies or Affiliates of such Lender wherever
located) to or for the credit or the account
of any Credit Party against obligations and liabilities of such Credit Party to the Lenders hereunder, under the Notes,
the other Credit Documents or otherwise, irrespective of whether the
Administrative Agent or the Lenders shall have made any demand hereunder and although such obligations,
liabilities or claims, or any of them, may be contingent or unmatured, and any such set-off shall be deemed to
have been made immediately upon the occurrence
of an Event of Default even though such charge is made or entered on the books
of such Lender subsequent thereto. The
Credit Parties hereby agree that any Person purchasing a participation
in the Loans and Commitments hereunder pursuant to Sections 11.3(e) or 3.8 may exercise all rights of set-off with respect to
its participation interest as fully as if such Person were a Lender hereunder.

                    11.3
Benefit of Agreement.

	
  

 	
  

 
	
  

 	
           (a)
 Generally. The provisions of this Credit Agreement shall be binding
 upon and inure to the benefit of the parties hereto and their respective
 successors and assigns permitted hereby,
 except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the
 prior written consent of each Lender and no Lender may assign or otherwise
 transfer any of its rights or obligations hereunder except

 

96

	
  

 	
  

 
	
  

 	
 (i) to an Eligible Assignee in accordance with the provisions of
subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section, (iii) by
way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section
or (iv) to an SPC in accordance with the provisions of subsection (g) of this Section (and
any other attempted assignment or transfer by any party hereto shall
be null and void). Nothing in this Credit Agreement, expressed or implied, shall be construed to confer upon any Person (other
than the parties hereto, their respective successors and assigns
permitted hereby, Loan Participants to the extent
provided in subsection (d) of this Section and, to the extent expressly
contemplated hereby, the
Indemnitees) any legal or equitable right, remedy or claim under or by reason
of this Credit 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 Credit Agreement (including all or a portion of its Commitment
and the Loans (including participations in LOC Obligations and in
Swing Line 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 subsection (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 principal outstanding balance of the Loans of the assigning Lender subject to each such
 assignment, determined as of the date the Assignment and Assumption
 with respect to such assignment is delivered
 to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade
 Date, shall not be less than $5,000,000 unless each of the Administrative
 Agent and, so long as no Event of
 Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be
 unreasonably withheld or delayed); provided, however, that concurrent assignments to members of an Assignee Group and concurrent assignments from
 members of an Assignee Group to a single Eligible Assignee (or to an
 Eligible Assignee and members of its Assignee Group) will be treated as a
 single assignment for purposes of determining whether such minimum amount has
 been met.

 
	
  

 	
  

 

	
  

 	
  

 
	
  

 	
           (ii)
 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 Loans or the
 Commitment assigned, except that
 this clause (ii) shall not (A) apply to the Swing Line Lender’s rights and obligations in respect of Swing
 Line Loans or (B) prohibit

 

97

	
  

 	
  

 
	
  

 	
 any Lender
 from assigning all or a portion of its Revolving Committed Amount and Term
 Loan Committed Amount on a non-pro rata basis;

 
	
  

 	
  

 
	
  

 	
           (iii)
 Required Consents. No consent shall be required for any assignment except
 to the extent required by subsection (b)(i)(B) of this Section and as
 set forth below:

 

	
  

 	
  

 
	
  

 	
           (A) the
 consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be
 required unless (1) an Event of Default has occurred and is continuing
 at the time of such assignment or (2) 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 (1) any
 Term Loan Committed Amount or Revolving Committed Amount if such
 assignment is to a Person that is not a Lender with a Commitment in respect of the applicable Senior Credit Facility,
 an Affiliate of such Lender or an
 Approved Fund with respect to such Lender,
 or (2) any Term Loan to a Person that is not a Lender, an Affiliate of
 a Lender or an Approved Fund;

 
	
  

 	
  

 
	
  

 	
           (C) the
 consent of the Issuing Lender (such consent 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); and

 
	
  

 	
  

 
	
  

 	
           (D) the consent of the Swing Line Lender (such
 consent not to be unreasonably withheld or delayed) shall be required for any
 assignment in respect of the Revolving Credit Facility.

 

	
  

 	
  

 
	
  

 	
           (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 in the amount of $3,500; provided,
 however, that 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 Borrower. No such assignment shall be made to the
 Borrower or any of the Borrower’s Affiliates or Subsidiaries.

 
	
  

 	
  

 
	
  

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

 

Subject to acceptance and recording thereof by the Administrative Agent
pursuant to subsection (c) of
this Section, from and after the effective date specified in each Assignment
and Assumption, the assignee thereunder shall be a party to this
Agreement and, to the extent of the

98

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 3.9, 3.12, 3.13, 3.14 and 11.5 with respect to facts and
circumstances occurring prior to the effective date of such assignment). Upon request, the Borrower (at its expense) shall
execute and deliver a Note to the assignee Lender. Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be
treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in
accordance with subsection (d) of this Section.

	
  

 	
  

 
	
  

 	
           (c) Register.
 The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the
 Agency Service Address a copy of each Assignment and Assumption delivered to it and a register for the
 recordation of the names and addresses of the Lenders, and the
 Commitments of, and principal amounts of the
 Loans owing to, each Lender pursuant to the terms hereof from time to time
 (the “Register”). The entries in the Register shall be conclusive
 (absent manifest error), and the Borrower, the Administrative Agent and the
 Lenders may treat each Person whose name is recorded in the Register pursuant
 to the terms hereof as a Lender hereunder for all purposes of this Credit Agreement, notwithstanding notice to the
 contrary. The Register shall be
 available for inspection by the Borrower, at any reasonable time and from
 time to time upon reasonable prior notice. In addition, at any time that a
 request for a consent for a
 material or other substantive change to the Credit Documents is pending, any Lender wishing to consult with other Lenders
 in connection therewith may request and
 receive from the Administrative Agent a copy of the Register.

 
	
  

 	
  

 
	
  

 	
           (d) Participations.
 Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative
 Agent, sell participations to any Person (other than a natural person or the Borrower or any of the Borrower’s
 Affiliates or Subsidiaries or any competitor of the Borrower or any
 affiliate of a competitor of the Borrower)
 (each, a “Loan Participant”) in all or a portion of such Lender’s
 rights and/or obligations under
 this Credit Agreement (including all or a portion of its Commitment and/or
 the Loans; provided that (i) such Lender’s obligations under this
 Credit Agreement shall remain unchanged,
 (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such
 obligations and (iii) the Borrower, the Administrative Agent 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 Credit Agreement. Any agreement or instrument
 pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole
 right to enforce this Credit
 Agreement and to approve any amendment, modification or waiver of any provision of this Credit Agreement; provided
 that such agreement or instrument may provide that such Lender will not, without the consent of the Loan
 Participant, agree to any
 amendment, waiver or other modification that would change the amount,
 interest rate or maturity of the
 Loans or any other matter that requires unanimous consent of all of the Lenders. Subject to subsection (e) of this
 Section, the Borrower agrees that each Loan

 

99

	
  

 	
  

 
	
  

 	
 Participant shall be entitled to the benefits of Sections 3.9, 3.13
 and 3.14 to the same extent
 as if it were a Lender and had acquired its interest by assignment pursuant
 to subsection (b) of this Section. To the extent permitted by law,
 each Loan Participant also shall be entitled to the benefits of Section 11.2
 as though it were a Lender, provided such Loan Participant agrees to
 be subject to Section 3.8 as though it were a Lender.

 
	
  

 	
  

 
	
  

 	
           (e)
 Loan Participant’s Rights. A Loan Participant shall not be entitled to receive any greater payment under Section 3.9 or
 3.14 than the applicable Lender would have been entitled to receive with respect to the participation sold
 to such Loan Participant, unless
 the sale of the participation to such Loan Participant is made with the Borrower’s prior written consent. A Loan
 Participant that would be a foreign Lender if it were a Lender shall
 not be entitled to the benefits of Section 3.13 unless the Borrower is notified of the participation sold to such Loan
 Participant and such Loan Participant agrees, for the benefit of the
 Borrower, to comply with Section 3.13 as though it were a Lender.

 
	
  

 	
  

 
	
  

 	
           (f) Unrestricted
 Assignments. Any Lender may at any time pledge or assign a security interest in all or any portion of its
 rights under this Credit Agreement (including
 under its Note(s), if any) to secure obligations of such Lender, including
 any pledge or assignment to secure obligations to a Federal Reserve
 Bank; provided that no such pledge
 or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or
 assignee for such Lender as a party hereto.

 
	
  

 	
  

 
	
  

 	
           (g)
 Special Purpose Entities. Notwithstanding anything to the contrary contained herein, so long as any action in accordance
 with this Section 11.3(g) does not cause
 increased costs or expenses for the Borrower, any Lender (a “Granting
 Lender”) may grant to a special purpose funding vehicle (an “SPC”)
 the option to fund all or any part of any
 Loan that such Granting Lender would otherwise be obligated to fund pursuant to this Credit Agreement; provided
 that (i) nothing herein shall constitute a commitment by any SPC to fund any Loan, (ii) if an SPC elects not to
 exercise such option or otherwise fails to fund all or any part of
 such Loan, the Granting Lender shall be obligated to fund such Loan pursuant
 to the terms hereof, (iii) no SPC shall have any voting rights pursuant to Section 11.6 and (iv) with respect to
 notices, payments and other matters
 hereunder, the Borrower, the Administrative Agent and the Lenders shall not
 be obligated to deal with an SPC, but may limit their communications
 and other dealings relevant to such SPC to
 the applicable Granting Lender. The funding of a Loan by an SPC
 hereunder shall utilize the Commitment of the Granting Lender to the same
 extent that, and as if, such Loan were
 funded by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for
 any indemnity or payment under this Credit Agreement for which a
 Lender would otherwise be liable for so long as, and to the extent, the
 Granting Lender provides such indemnity or makes such payment.
 Notwithstanding anything to the contrary contained in this Credit Agreement,
 any SPC may disclose any non-public information relating to its funding of
 Loans to any rating agency, commercial paper
 dealer or provider of any surety or guarantee to such SPC so long as such disclosure is clearly designated as being made
 on a confidential basis. This Section 11.3(g) may not be amended without
 the prior written consent of each Granting

 

100

	
  

 	
  

 
	
  

 	
 Lender,
 all or any part of whose Loan is being funded by an SPC at the time of such
 amendment.

 
	
  

 	
  

 
	
  

 	
           (h)
 Electronic Execution
 of Assignments. The words
 “execution,” “signed,” “signature,” and words of like import in any
 Assignment and Assumption shall be deemed to include electronic signatures or
 the keeping of records in electronic form, each of which shall be of the same
 legal effect, validity or enforceability as a manually executed signature or
 the use of a paper-based recordkeeping system, as the case may be, to the
 extent and as provided for in any applicable law, including the Federal
 Electronic Signatures in Global and National Commerce Act, the New York State
 Electronic Signatures and Records Act, or any other similar state laws based
 on the Uniform Electronic Transactions Act.

 

                    11.4
No Waiver; Remedies Cumulative.

          No
failure or delay on the part of the Administrative Agent or any Lender in
exercising any right, power or privilege hereunder or under any other Credit
Document and no course of dealing between the Borrower or any Credit Party and
the Administrative Agent or any Lender shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder
or under any other Credit Document preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder or
thereunder. The rights and remedies provided herein are cumulative and not
exclusive of any rights or remedies which the Administrative Agent or any
Lender would otherwise have. No notice to or demand on any Credit Party in any
case shall entitle any Credit Party to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the
Administrative Agent or the Lenders to any other or further action in any
circumstances without notice or demand.

                    11.5
Payment of Expenses; Indemnification.

	
  

 	
  

 
	
  

 	
 (a)
 The Borrower shall pay on demand:

 
	
  

 	
  

 
	
  

 	
           (i)
 any and all attorneys’ fees and disbursements and out-of-pocket costs and
 expenses incurred by the Administrative Agent in connection with the
 development, drafting, negotiation and administration of the Credit
 Documents, any amendments thereto and the syndication and closing of the
 transactions contemplated thereby; and

 
	
  

 	
  

 
	
  

 	
           (ii)
 all costs and expenses (including fees and disbursements of in-house and
 other attorneys, appraisers and consultants) incurred by the Agents or the
 Lenders in any workout, restructuring or similar arrangements or, after an
 Event of Default, in connection with the protection, preservation, exercise
 or enforcement of any of the terms of the Credit Documents or in connection
 with any foreclosure, collection or bankruptcy proceedings.

 

          The
foregoing costs and expenses shall include all 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. If
requested by the Borrower, the Administrative Agent or a Lender, as applicable,
will furnish to the Borrower, within ten

101

Business Days
of such request, a certificate setting forth the basis in reasonable detail
with respect to any amounts requested under this Section 11.5(a). All
amounts due under this Section 11.5(a) shall be payable within twenty Business
Days after demand therefor. The agreements in this Section shall survive the
termination of the Commitments and repayment of all Credit Party Obligations. 

	
  

 	
  

 
	
  

 	
 (b)
 Indemnification.

 
	
  

 	
  

 
	
  

 	
           (i)
Whether or not the transactions contemplated hereby are consummated, the
Borrower shall indemnify and hold harmless each Agent-Related Person, each
Lender and their respective Affiliates, directors, officers, employees,
counsel, agents and attorneys-in-fact (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
Credit 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 or Loan or the use
or proposed use of the proceeds therefrom, (C) any actual or alleged presence
or release of hazardous materials on or from any property currently or
formerly owned or operated by the Borrower or any of its Subsidiaries or any
environmental liability related in any way to the Borrower or any of its
Subsidiaries or (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”); 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 are determined by a final and nonappealable
judgment of a court of competent jurisdiction to have resulted from the gross
negligence, willful misconduct or bad faith of such Indemnitee. 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 Credit Agreement,
nor shall any Indemnitee have any liability for any indirect or consequential
damages relating to this Credit Agreement or any other Credit Document or
arising out of its activities in connection herewith or therewith (whether
before or after the Closing Date). All amounts due under this Section
11.5(b) shall be payable within ten Business Days after demand therefor.
The agreements in this Section shall survive the resignation of the
Administrative Agent, the replacement of any Lender, the termination of the
Commitments and the repayment, satisfaction or discharge of all the Credit
Party Obligations. 

 

102

	
  

 	
  

 
	
  

 	
           (ii)
 To the extent that the undertaking to indemnify and hold harmless set forth
 in Section 11.5(b)(i) may be unenforceable as violative of any applicable law
 or public policy, the Borrower shall make the maximum contribution to the
 payment and satisfaction of each of the Indemnified Liabilities that is
 permissible under applicable law.

 

                    11.6
Amendments, Waivers and Consents.

          Neither
this Credit Agreement nor any other Credit Document nor any of the terms hereof
or thereof may be amended, changed, waived, discharged or terminated unless
such amendment, change, waiver, discharge or termination is in writing and
signed by the Required Lenders and the then Credit Parties; provided that no such amendment, change, waiver, discharge or termination shall without
the consent of each Lender affected thereby: 

	
  

 	
  

 
	
  

 	
           (a)
 extend the Maturity Date or extend or postpone the time for any payment or
 prepayment of principal of any Loan or unreimbursed drawing of any Letter of
 Credit;

 
	
  

 	
  

 
	
  

 	
           (b)
 reduce the rate or amount or extend the time of payment of interest (other
 than as a result of waiving the applicability of any post-default increase in
 interest rates) thereon or fees hereunder;

 
	
  

 	
  

 
	
  

 	
           (c)
 reduce or waive the principal amount of any Loan or unreimbursed drawing of
 any Letter of Credit;

 
	
  

 	
  

 
	
  

 	
           (d)
 increase or extend the Commitment of a Lender (it being understood and agreed
 that a waiver of any Default or Event of Default or a waiver of any mandatory
 reduction in the Commitments shall not constitute a change in the terms of
 any Commitment of any Lender);

 
	
  

 	
  

 
	
  

 	
           (e)
 release the Borrower from its obligations or consent to the assignment or
 transfer by the Borrower of any of its rights and obligations under (or in
 respect of) the Credit Documents or release (i) all or substantially all of
 the Guarantors from their respective obligations under the Credit Documents
 or (ii) any material Guaranty;

 
	
  

 	
  

 
	
  

 	
           (f)
 amend, modify or waive any provision of this Section 11.6 or Section 3.4(a),
 3.4(b)(i), 3.7 (or any other provision providing for the pro rata nature of
 payments or disbursements to Lenders), 3.8, 9.1(a), 11.2, 11.3 or 11.5; or

 
	
  

 	
  

 
	
  

 	
           (g)
 reduce any percentage specified in, or otherwise modify, the definition of
 Required Lenders.

 

Notwithstanding
the above, (i) no provisions of Section 10 may be amended or modified without
the consent of the Administrative Agent, (ii) no provisions of Section 2.3 may
be amended or modified without the consent of the Issuing Lender and (iii) no
provisions of Section 2.4 may be amended or modified without the consent of the
Swing Line Lender.

Notwithstanding
the fact that the consent of all the Lenders is required in certain
circumstances as set forth above, (x) each Lender is entitled to vote as such
Lender sees fit on any reorganization plan

103

that affects
the Loans or the Letters of Credit, and each Lender acknowledges that the
provisions of Section 1126(c) of the Bankruptcy Code supersedes the unanimous
consent provisions set forth herein and (y) the Required Lenders may consent to
allow a Credit Party to use cash collateral in the context of a bankruptcy or
insolvency proceeding.

If, in
connection with any proposed amendment, waiver or consent requiring the consent
of a greater percentage of the Lenders than the Required Lenders and the
consent of the Required Lenders is obtained, but the consent of one or more
other Lenders is not obtained (any such Lender which declares in writing that
it will not provide such consent or whose consent is not obtained within the
applicable period prescribed for such amendment, waiver or consent being
referred to herein as a “Non-Consenting Lender”),
then, so long as the Administrative Agent is not a Non-Consenting Lender, the
Borrower may, within 45 days of such Lender becoming a Non-Consenting Lender,
give notice in writing to the Administrative Agent and such Non-Consenting
Lender of the Borrower’s intention to cause such Non-Consenting Lender to sell
all of such Non-Consenting Lenders’ interests in its Commitments for an amount
equal to the principal balances thereof and all accrued interest and fees with
respect thereto through the date of sale pursuant to one or more Assignment and
Acceptance Agreements, such sale being without premium or discount. In the
event of any such notice, such Non-Consenting Lender shall be required to sell
and assign such interests (including all of its related rights and obligations)
as provided in this Section. Any such sale of a Non-Consenting Lender’s
Commitments must be to an Eligible Assignee and, unless otherwise agreed to by
the Administrative Agent, the Borrower shall be solely responsible for sourcing
such Eligible Assignee, at no cost or expense to the Administrative Agent or
any Lender. Any such assignment to an Eligible Assignee pursuant to this
Section shall be in accordance with clause (b)(iv) of Section 11.3. At any time
during or after the period during which a proposed amendment, waiver or consent
was pending, upon the request of the Borrower the Administrative Agent shall
promptly provide (but in any event within one Business Day) the Borrower with
the names, contact information, Commitment percentages, principal balances and
any other information reasonably requested for each Lender which, at the time
of such request, was either a Non-Consenting Lender or had not yet decided
whether or not to approve or consent to such amendment, waiver or consent.

                    11.7
Counterparts.

          This
Credit Agreement may be executed in any number of counterparts, each of which
when so executed and delivered shall be an original, but all of which shall
constitute one and the same instrument.

                    11.8
Headings.

          The
headings of the sections and subsections hereof are provided for convenience
only and shall not in any way affect the meaning or construction of any
provision of this Credit Agreement.

                    11.9
Defaulting Lender.

          Each
Lender understands and agrees that if such Lender is a Defaulting Lender then
notwithstanding the provisions of Section 11.6 it shall not be entitled to vote
on any matter requiring

104

the consent of
the Required Lenders or to object to any matter requiring the consent of all
the Lenders; provided, however, that all other
benefits and obligations under the Credit Documents shall apply to such
Defaulting Lender.

                    11.10
Survival of Indemnification.

          All
indemnities set forth herein shall survive the execution and delivery of this
Credit Agreement, the making of the Loans, the issuance of the Letters of
Credit and the repayment of the Loans, LOC Obligations and other obligations
and the termination of the Commitments hereunder. All representations and warranties
made hereunder and in any other Credit 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 Extension of Credit, and shall continue in full force and effect as long
as any Loan or any other Credit Party Obligation hereunder shall remain unpaid
or unsatisfied.

                    11.11 Governing Law; Venue; Jurisdiction.

	
  

 	
  

 
	
  

 	
           (a)
 THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND
 OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND
 CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
 Any legal action or proceeding with respect to this Credit Agreement or any
 other Credit Document may be brought in the courts of the State of New York
 or of the United States sitting in New York City, and, by execution and
 delivery of this Credit Agreement, each Credit Party hereby irrevocably
 accepts for itself and in respect of its Property, generally and
 unconditionally, the jurisdiction of such courts. Each Credit Party
 irrevocably consents to the service of process in any action or proceeding
 with respect to this Credit Agreement or any other Credit Document by the
 mailing of copies thereof by registered or certified mail, postage prepaid,
 to it at the address for notices pursuant to Section 11.1, such
 service to become effective 10 days after such mailing. Nothing herein shall
 affect the right of a Lender to serve process in any other manner permitted
 by law or to commence legal proceedings or otherwise proceed against a Credit
 Party in any other jurisdiction. Each Credit Party agrees that a final judgment
 in any action or proceeding shall be conclusive and may be enforced in other
 jurisdictions by suit on the judgment or in any other manner provided by law;
 provided that nothing in this Section 11.11(a) is intended to impair a Credit
 Party’s right under applicable law to appeal or seek a stay of any judgment.

 
	
  

 	
  

 
	
  

 	
           (b)
 Each Credit Party hereby irrevocably waives any objection which it may now or
 hereafter have to the laying of venue of any of the aforesaid actions or
 proceedings arising out of or in connection with this Credit Agreement or any
 other Credit Document in the courts referred to in subsection (a) hereof and
 hereby further irrevocably waives and agrees not to plead or claim in any
 such court that any such action or proceeding brought in any such court has
 been brought in an inconvenient forum.

 

105

                    11.12
Waiver of Jury Trial; Waiver of
Consequential Damages.

          EACH
OF THE PARTIES TO THIS CREDIT AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR
RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY. 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 CREDIT DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION. Each Credit Party agrees not to assert any
claim against the Administrative Agent, the Issuing Lenders, any Lender, any of
their Affiliates, or any of their respective directors, officers, employees,
attorneys or agents, on any theory of liability, for special, indirect,
consequential or punitive damages arising out of or otherwise relating to any
of the transactions contemplated herein.

                    11.13
Severability.

          If
any provision of any of the Credit Documents is determined to be illegal,
invalid or unenforceable, such provision shall be fully severable and the
remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.

                    11.14
Further Assurances.

          The
Credit Parties agree, upon the request of the Administrative Agent, to promptly
take such actions, as reasonably requested, as is necessary to carry out the
intent of this Credit Agreement and the other Credit Documents.

                    11.15
Confidentiality.

          Each
of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its and its Affiliates’
respective partners, directors, officers, employees, agents, advisors and
representatives, excluding equity security departments and their members (it
being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other
Credit Document or any action or proceeding relating to this Credit Agreement
or any other Credit 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 Loan Participant in,
or any prospective assignee of or Loan

106

Participant
in, any of its rights or obligations under this Credit Agreement or (ii) any
actual or prospective counterparty (or its advisors) to any swap or derivative
transaction relating to a Credit Party and its obligations, (g) with the
consent of the Borrower or (h) to the extent such Information (x) becomes
publicly available other than as a result of a breach of this Section or (y)
becomes available to the Administrative Agent, any Lender or any of their
respective Affiliates on a nonconfidential basis from a source other than the
Borrower. In addition, the Administrative Agent and the Lenders may disclose
the existence of this Credit Agreement and information about this Credit
Agreement to market data collectors, similar service providers to the lending
industry and service providers to the Administrative Agent and the Lenders in
connection with the administration and management of this Credit Agreement, the
other Credit Documents and the Loans.

For purposes
of this Section, “Information” means all information received from the Borrower
or any of its Subsidiaries relating to the Borrower or any Subsidiary or any of
their respective businesses, other than any such information that is available
to the Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by the Borrower or any Subsidiary, provided that, in the case of information received from the Borrower or any Subsidiary
after the date hereof, such information is clearly identified in writing 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 to maintain the confidentiality of such Information as such
Person would accord to its own confidential information. In addition, the
Administrative Agent may disclose to any agency or organization that assigns
standard identification numbers to loan facilities such basic information
describing the facilities provided hereunder as is necessary to assign unique
identifiers (and, if requested, supply a copy of this Credit Agreement), it
being understood that the Person to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to make
available to the public only such Information as such person normally makes
available in the course of its business of assigning identification numbers.
Each of the Administrative Agent and the Lenders acknowledges that (a) the
Information may include material non-public information concerning the Borrower
or a Subsidiary, as the case may be, (b) it has developed compliance procedures
regarding the use of material non-public information and (c) it will handle
such material non-public information in accordance with applicable law,
including federal and state securities laws. 

                    11.16
Entirety.

          This
Credit Agreement together with the other Credit Documents and the Fee Letter
represent the entire agreement of the parties hereto and thereto, and supersede
all prior agreements and understandings, oral or written, if any, including any
commitment letters or correspondence relating to the Credit Documents or the
transactions contemplated herein and therein.

                    11.17
Binding Effect; Continuing Agreement.

	
  

 	
  

 
	
  

 	
           (a)
 This Credit Agreement shall become effective at such time when all of the
 conditions set forth in Section 5.1 have been satisfied or waived by the
 Lenders and it shall have been executed by the Borrower, the Guarantors and
 the Administrative Agent, and the Administrative Agent shall have received
 copies hereof (telefaxed or otherwise)

 

107

	
  

 	
  

 
	
  

 	
 which, when
 taken together, bear the signatures of each Lender, and thereafter this
 Credit Agreement shall be binding upon and inure to the benefit of the Borrower, the
 Guarantors, the Administrative Agent and each Lender and their respective
 successors and assigns.

 
	
  

 	
  

 
	
  

 	
           (b)
This Credit Agreement shall be a continuing agreement and shall remain in full
force and effect until all Loans, LOC Obligations, interest, fees and other
Credit Party Obligations have been paid in full and all Commitments and
Letters of Credit have been terminated. Upon termination, the Credit Parties
shall have no further obligations (other than the indemnification provisions
that survive) under the Credit Documents; provided that should any payment,
in whole or in part, of the Credit Party Obligations be rescinded or
otherwise required to be restored or returned by the Administrative Agent or
any Lender, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, then the Credit Documents shall automatically be
reinstated and all amounts required to be restored or returned and all costs
and expenses incurred by the Administrative Agent or any Lender in connection
therewith shall be deemed included as part of the Credit Party Obligations. 

 

                    11.18
USA Patriot Act Notice.

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

                    11.19
No Advisory or Fiduciary Responsibility.

          In
connection with all aspects of each transaction contemplated hereby (including
in connection with any amendment, waiver or other modification hereof or of any
other Credit Document), the Borrower and each Guarantor acknowledges and
agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the
arranging and other services regarding this Agreement provided by the
Administrative Agent and the Lead Arrangers are arm’s-length commercial
transactions between the Borrower, each Guarantor and their respective
Affiliates, on the one hand, and the Administrative Agent and the Lead
Arrangers, on the other hand, (B) each of the Borrower and the Guarantors has
consulted its own legal, accounting, regulatory and tax advisors to the extent
it has deemed appropriate, and (C) the Borrower and each Guarantor is capable
of evaluating, and understands and accepts, the terms, risks and conditions of
the transactions contemplated hereby and by the other Credit Documents; (ii)
(A) each of the Administrative Agent and the Lead Arrangers is and has been
acting solely as a principal and, except as expressly agreed in writing by the
relevant parties, has not been, is not, and will not be acting as an advisor,
agent or fiduciary for the Borrower, any Guarantor or any of their respective
Affiliates, or any other Person and (B) neither the Administrative Agent nor
either Lead Arranger has any obligation to the Borrower, the Guarantors or any
of their respective Affiliates with respect to the transactions contemplated
hereby except those obligations expressly set forth

108

herein and in
the other Credit Documents; and (iii) the Administrative Agent and the Lead
Arrangers and their respective Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Borrower, the
Guarantors and their respective Affiliates, and neither the Administrative
Agent either Lead Arranger has any obligation to disclose any of such interests
to the Borrower, any Guarantor or any of their respective Affiliates, it being
understood that nothing in the Credit Documents is in any way intended to limit
the scope of the engagement of Morgan Stanley & Co. Incorporated or the
obligations of Morgan Stanley & Co. Incorporated pursuant to its engagement
by you as financial advisor in connection with the Acquisition, or your rights
and remedies in connection therewith.

                    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 Credit 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 each Credit Party in respect of any
such sum due from it to any Agent or the Lenders hereunder or under the other
Credit Documents shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than that in which such sum is denominated in
accordance with the applicable provisions of this Agreement (the “Agreement
Currency”), be discharged only to the extent that on the Business
Day following receipt by the Administrative Agent of any sum adjudged to be so
due in the Judgment Currency, the Administrative Agent may in accordance with
normal banking procedures purchase the Agreement Currency with the Judgment
Currency. If the amount of the Agreement Currency so purchased is less than the
sum originally due to the Administrative Agent from any Credit Party in the
Agreement Currency, such Credit Party 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 such Borrower (or to any other Person who
may be entitled thereto under applicable law).

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

109

          Each
of the parties hereto has caused a counterpart of this Credit Agreement to be
duly executed and delivered as of the date first above written.

BORROWER:  

	
  

 	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS INCORPORATED,

 a Delaware corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	

	
  

 	
  

 	

 

 
	
  

 	
 Name:          Joseph P. Manory

 
	
  

 	
 Title:          Vice President and Treasurer

 

Signature Page to Credit Agreement

Quest Diagnostics Incorporated

GUARANTORS:

	
  

 	
  

 	
  

 
	
  

 	
 AMERICAN
 MEDICAL LABORATORIES,

 
	
  

 	
  

 	
 INCORPORATED,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 
	
  

 	
 AML INC.,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 APL
 PROPERTIES LIMITED LIABILITY COMPANY,

 
	
  

 	
 a Nevada limited liability
 company

 
	
  

 	
  

 
	
  

 	
 CENTRAL
 PLAINS HOLDINGS, INC.,

 
	
  

 	
 a Kansas corporation

 
	
  

 	
  

 
	
  

 	
 CENTRAL
 PLAINS LABORATORIES, LLC,

 
	
  

 	
 a Kansas limited liability
 company

 
	
  

 	
  

 
	
  

 	
 DIAGNOSTIC
 REFERENCE SERVICES INC.,

 
	
  

 	
 a Maryland corporation

 
	
  

 	
  

 
	
  

 	
 DPD
 HOLDINGS INC.,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 
	
  

 	
 ENTERIX
 INC.,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 
	
  

 	
 EXAMONE
 WORLD WIDE, INC.,

 
	
  

 	
 a Pennsylvania corporation

 
	
  

 	
  

 
	
  

 	
 EXAMONE
 WORLD WIDE OF NJ, INC.,

 
	
  

 	
 a New Jersey corporation

 
	
  

 	
  

 
	
  

 	
 FNA
 CLINICS OF AMERICA, INC.,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 
	
  

 	
 FOCUS
 DIAGNOSTICS, INC.,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 
	
  

 	
 FOCUS
 TECHNOLOGIES HOLDINGS COMPANY,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 
	
  

 	
 LABONE,
 INC.,

 
	
  

 	
 a Missouri corporation

 

Signature
Page to Credit Agreement

Quest Diagnostics Incorporated

	
  

 	
  

 	
  

 
	
  

 	
 LABONE OF OHIO, INC.,

 
	
  

 	
 a
 Delaware corporation

 
	
  

 	
  

 
	
  

 	
 MEDPLUS, INC.,

 
	
  

 	
 an
 Ohio corporation

 
	
  

 	
  

 
	
  

 	
 METWEST INC.,

 
	
  

 	
 a
 Delaware corporation

 
	
  

 	
  

 
	
  

 	
 NICHOLS INSTITUTE DIAGNOSTICS,

 
	
  

 	
 a
 California corporation

 
	
  

 	
  

 
	
  

 	
 OSBORN GROUP INC.,

 
	
  

 	
 a Delaware
 corporation

 
	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS CLINICAL

 
	
  

 	
  

 	
 LABORATORIES, INC.,

 
	
  

 	
 a
 Delaware corporation

 
	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS HOLDINGS 

 
	
  

 	
  

 	
 INCORPORATED,

 
	
  

 	
 a
 Delaware corporation

 
	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS NICHOLS INSTITUTE,

 
	
  

 	
 a
 California corporation

 
	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS INCORPORATED,

 
	
  

 	
 a
 Maryland corporation

 
	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS INCORPORATED,

 
	
  

 	
 a
 Michigan corporation

 
	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS INCORPORATED,

 
	
  

 	
 a
 Nevada corporation

 
	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS LLC,

 
	
  

 	
 a
 Connecticut limited liability company

 
	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS LLC,

 
	
  

 	
 an
 Illinois limited liability company

 
	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS LLC,

 
	
  

 	
 a
 Massachusetts limited liability company

 

	
  

 	
  

 	
  

 
	
  

 	
 Signature Page
 to Credit Agreement 

 Quest Diagnostics Incorporated

 
	
  

 	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS NICHOLS INSTITUTE, INC.,

 
	
  

 	
 a Virginia corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS OF PENNSYLVANIA, INC.,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 SYSTEMATIC BUSINESS SERVICES, INC.,

 
	
  

 	
 a Missouri corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 UNILAB
 CORPORATION,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Joseph P. Manory

 
	
  

 	
 Title:

 	
 Vice President and Treasurer

 of each of the above Guarantors

 
	
  

 	
  

 	
  

 
	
  

 	
 PATHOLOGY
 BUILDING PARTNERSHIP,

 
	
  

 	
 a Maryland general partnership

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 Quest Diagnostics Incorporated, a Maryland
corporation, its general partner

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Joseph P. Manory

 
	
  

 	
 Title:

 	
 Vice President and Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 Diagnostic Reference Services
 Inc., a Maryland corporation, its general partner

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Joseph P. Manory 

 
	
  

 	
 Title:

 	
 Vice President and Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
 QUEST DIAGNOSTICS INVESTMENTS INCORPORATED,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Stephen A. Calamari

 
	
  

 	
 Title:

 	
 Treasurer

 

	
  

 	
  

 	
  

 
	
  

 	
 Signature Page
 to Credit Agreement 

 Quest Diagnostics Incorporated

 
	
  

 	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS FINANCE INCORPORATED,

 
	
  

 	
 a Delaware corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Stephen A. Calamari

 
	
  

 	
 Title:

 	
 Treasurer

 

Signature Page to Credit Agreement 

Quest Diagnostics Incorporated

LENDERS:

	
  

 	
  

 	
  

 
	
  

 	
 BANK OF
 AMERICA, N.A.,

 
	
  

 	
 individually
 in its capacity as administrative Agent

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Craig Murlless

 
	
  

 	
 Title:

 	
 Senior Vice President

 
	
  

 	
  

 	
  

 
	
  

 	
 BANK OF
 AMERICA, N.A.,

 
	
  

 	
 individually
 in its capacity as a Lender and in its capacity as Issuing Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Craig Murlless

 
	
  

 	
 Title:

 	
 Senior Vice President

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 MORGAN
 STANLEY SENIOR FUNDING, INC.

 
	
  

 	
 as a
 Lender,

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
 Anish
 Shah 

 
	
  

 	
 Title:

 	
 Vice
 President

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 NORDEA BANK
 FINLAND PLC, 

 
	
  

 	
 New York and
 Grand Cayman Branches

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Henrik M. Steffensen 

 
	
  

 	
 Title: Senior Vice President

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Gerald E. Chelius 

 
	
  

 	
 Title: SVP Credit

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 Wachovia
 Bank, National Association

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Jeanette A. Griffin 

 
	
  

 	
 Title:
  Director

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 SUNTRUST BANK

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Helen C. Hartz 

 
	
  

 	
 Title: Vice President

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 Union Bank of California,
 N. A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

	
  

 	
  

 	

 

 
	
  

 	
 Name: Richard A. Lopart 

 
	
  

 	
 Title:
   Vice President

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 MERRILL
 LYNCH BANK USA

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Louis Alder

 
	
  

 	
 Title:
  Director

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 Manufacturers and Traders
 Trust Company

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Laurel LB Magruder 

 
	
  

 	
 Title:   Vice
 President

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 KeyBank National Association

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	

	
  

 	
  

 	

 

 
	
  

 	
 Name: J. T. Taylor 

 
	
  

 	
 Title:
 Senior Vice President

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 SUMITOMO MITSUI BANKING CORPORATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: David A. Buck 

 
	
  

 	
 Title: Senior Vice President

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 Calyon
 New York Branch

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Thomas Randolph 

 
	
  

 	
 Title:
 Managing Director

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Yuri Muzichenko

 
	
  

 	
 Title:
 Director

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 FIFTH THIRD BANK

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 George B. Davis 

 
	
  

 	
 Title:
 Vice Presient

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 The
 Royal Bank of Scotland plc

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Iain Stewart

 
	
  

 	
 Title:   Managing
 Director

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 FORTIS
 CAPITAL CORP.

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	

	
  

 	
  

 	

 

 
	
  

 	
 Name: John W. Deegan

 
	
  

 	
 Title:
   Senior Vice President

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Rachel Lanava 

 
	
  

 	
 Title:   Vice President

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 Taipel
 Fubon Commercial Bank, New York Agency

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

	
  

 	
  

 	

 

 
	
  

 	
 Name: Sophia Jing

 
	
  

 	
 Title:
 FVP & General manager

 

	
  

 	
  

 
	
  

 	
 Five-Year Credit Agreement

 

	
  

 	
  

 	
  

 
	
  

 	
 JPMorgan
 Chase Bank, N.A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Harold V. Garrity III 

 
	
  

 	
 Title: Vice President

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 COMMERCE BANK, N.A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 ILLEGIBLE

 
	
  

 	
 Title: Vice President

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 THE BANK OF TOKYO-MITSUBISHI
 UFJ, LTD., 

 NEW YORK BRANCH

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: LILLIAN KIM

 
	
  

 	
 Title:
 AUTHORIZED SIGNATORY

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 The Northern Trust Company

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Courtney L. O’Connor 

 
	
  

 	
 Title:
   2nd Vice President

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 BARCLAYS BANK PLC

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: Nicholas Bell 

 
	
  

 	
 Title: Director

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 Citibank,
 N.A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Christopher Conway 

 
	
  

 	
 Title:
 Vice President

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 CHANG
 HWA COMMERCIAL BANK, LTD. 

 LOS
 ANGELES BRANCH

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Wen-Che Chen 

 
	
  

 	
 Title: VP & General
 Manager

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 Wells Fargo Bank, N.A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Donald P. Schwartz 

 
	
  

 	
 Title:
 Sr. V.P.

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 U.S.
 Bank, N.A.

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Thomas A. Heckman 

 
	
  

 	
 Title: Vice President

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 [NAME
 OF LENDER]

 
	
  

 	
 THE BANK OF NEW YORK

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: JOHN M. LOKAY, JR. 

 
	
  

 	
 Title:
 VICE PRESIDENT

 

Five-Year Credit Agreement

	
  

 	
  

 	
  

 
	
  

 	
 Mizuho
 Corporate Bank, Ltd.

 
	
  

 	
  

 	
  

 
	
  

 	
 By

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:
 Raymond Ventura 

 
	
  

 	
 Title:
 Deputy General Manager

 

Five-Year Credit Agreement

Signature Page to Amended and Restated Credit Agreement 

Quest Diagnostics Incorporated

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 PNC Bank,
 National Association

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: 

 	
 Michael Richards

 
	
  

 	
 Title: 

 	
 Senior Vice President

 

SCHEDULE 1.01

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 possible 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 Borrower or any Lender, deliver to the Borrower 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:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 in
 relation to any Loan in Sterling:

 

	
  

 	
  

 	
  

 
	
  

 	
 AB+C(B-D)+E
 × 0.01

 	
  per
 cent per annum

 
	
  

 	
 100 - (A+C)

 

	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 in
 relation to any Loan in any currency other than Sterling:

 

	
  

 	
  

 	
  

 
	
  

 	
 E × 0.01

 	
  per
 cent per annum

 
	
  

 	
 300

 

	
  

 	
  

 	
  

 
	
 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.

 
	
  

 	
  

 	
  

 
	
  

 	
 “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
 2.08(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:

 
	
  

 	
  

 
	
  

 	
 (a)

 	
  “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;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
  “Fees Rules” means the rules on periodic fees contained
 in the FSA Supervision 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;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
  “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

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 Capitalized terms used in
 this Schedule and not otherwise defined herein are used as defined in this
 Agreement.

 
	
  

 	
  

 	
  

 
	
 6.

 	
 In application of the
 above formulae, A, B, C and D will be included in the formulae as percentages
 (i.e. 5% 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 Borrower, 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 Borrower, 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 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:

 
	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the jurisdiction of the
 Lending Office out of which it is making available its participation in the
 relevant Loan; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (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 of each
 Lender for the purpose of A and C above and the rates of charge of each
 Lender for the purpose of 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 and Special Deposits
 are the same as those of a typical bank from its jurisdiction of
 incorporation with a Lending Office in the same jurisdiction as its 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.

 
	
  

 	
  

 
	
           The
 Administrative Agent may from time to time, after consultation with the
 Borrower 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.

 

Schedule 1.1(a)

Credit
Agreement

COMMITMENT PERCENTAGES

LENDING OFFICE

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 LENDER

 	
  

 	
 LENDING OFFICE

 	
  

 	
 TERM LOAN

 COMMITMENT

 AMOUNT

 	
  

 	
 REVOLVING

 LOAN

 COMMITMENT

 AMOUNT

 	
  

 	
 COMMITMENT

 PERCENTAGE

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Morgan Stanley Senior

 Funding, Inc.

 	
  

 	
 Morgan Stanley Senior Funding, Inc.

 1585 Broadway

 New York, NY 10036

 Attention: Lisa Malone

 (718) 754-7425

 	
  

 	
 $108,936,170.20

 	
  

 	
 $51,063,829.80

 	
  

 	
 6.808510638

 	
 %

 
	
 Bank of America, N.A.

 	
  

 	
 Bank of America, N.A.

 101 N. Tryon Street

 Mail Code: NC1-001-04-39

 Charlotte, NC 28255

 Attention: Katrina Linen

 (704) 388-3918

 	
  

 	
 $108,936,170.20

 	
  

 	
 $51,063,829.80

 	
  

 	
 6.808510638

 	
 %

 
	
 Merrill Lynch Bank

 USA

 	
  

 	
 Merrill Lynch Bank USA

 15 W. South Temple, Suite 300

 Salt Lake City, UT 84101

 Attention: Dave Millett

 (801) 526-8312

 	
  

 	
 $95,319,148.94

 	
  

 	
 $44,680,851.06

 	
  

 	
 5.957446809

 	
 %

 
	
 Barclays Bank PLC

 	
  

 	
 Barclays Bank PLC

 200 Park Avenue, 4th FL

 New York, NY 10166

 Attention: Nicholas Bell

 (212) 412-4029

 	
  

 	
 $95,319,148.94

 	
  

 	
 $44,680,851.06

 	
  

 	
 5.957446809

 	
 %

 
	
 JPMorgan Chase Bank,

 N.A.

 	
  

 	
 JPMorgan Chase Bank, N.A.

 277 Park Avenue

 New York, NY 10172

 Attention: Hal Garrity

 (212) 622-3499

 	
  

 	
 $95,319,148.94

 	
  

 	
 $44,680,851.06

 	
  

 	
 5.957446809

 	
 %

 
	
 Wachovia Bank,

 National Association

 	
  

 	
 Wachovia Bank, National

 Association

 One South Broad St.
 PA4152
Philadelphia,
 PA 19107

 Attention: Jeanette Griffin

 (267) 321-6615

 	
  

 	
 $95,319,148.94

 	
  

 	
 $44,680,851.06

 	
  

 	
 5.957446809

 	
 %

 
	
 The Bank of Tokyo-

 Mitsubishi UFJ, Ltd.,

 NY Branch

 	
  

 	
 Bank of Tokyo-Mitsubishi UFJ, Ltd

 1251 Avenue of the Americas, 12th

 FL

 New York, NY 10020-1104

 Attention: Jose Carlos

 (212) 782-4233

 	
  

 	
 $81,702,127.66

 	
  

 	
 $38,297,872.34

 	
  

 	
 5.106382979

 	
 %

 
	
 Calyon New York

 Branch

 	
  

 	
 Healthcare Group

 1301 Avenue of the Americas

 New York, NY 10019

 Attention: Tom Randolph

 (212) 261-7431

 	
  

 	
 $81,702,127.66

 	
  

 	
 $38,297,872.34

 	
  

 	
 5.106382979

 	
 %

 
	
 Citibank, N.A.

 	
  

 	
 Citibank, N.A.

 338 Greenwich St. 21th FL

 	
  

 	
 $81,702,127.66

 	
  

 	
 $38,297,872.34

 	
  

 	
 5.106382979

 	
 %

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 New York, NY 10026

 Attention: Mark R. Floyd

 (212) 816-2111

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Mizuho Corporate

 Bank, Ltd.

 	
  

 	
 Mizuho Corporate Bank, Ltd.

 1251 Avenue of the Americas

 New York, NY 10020

 Attention: Vadim Mulodzhanov

 (212) 282-3559

 	
  

 	
 $81,702,127.66

 	
  

 	
 $38,297,872.34

 	
  

 	
 5.106382979

 	
 %

 
	
 PNC Bank National

 Association

 	
  

 	
 PNC Bank National Association
 1950 Rt 70W

 Cherryhill, NJ 08003

 Attention: Leslie Turkington

 (856) 489-2765

 	
  

 	
 $81,702,127.66

 	
  

 	
 $38,297,872.34

 	
  

 	
 5.106382979

 	
 %

 
	
 The Royal Bank of

 Scotland plc

 	
  

 	
 The Royal Bank of Scotland plc

 101 Park Avenue, 12th FL

 New York, NY 10178

 Attention: Eugene Shim

 (212) 401-3804

 	
  

 	
 $81,702,127.66

 	
  

 	
 $38,297,872.34

 	
  

 	
 5.106382979

 	
 %

 
	
 Fifth Third Bank

 	
  

 	
 Fifth Third Bank

 707 Grant St. MDAGTB21

 Pittsburgh, PA 15219

 Attention: George Davis

 (412) 291-5703

 	
  

 	
 $51,063,829.79

 	
  

 	
 $23,936,170.21

 	
  

 	
 3.191489362

 	
 %

 
	
 KeyBank National

 Association

 	
  

 	
 KeyBank National Association

 127 Public Square, 6th FL

 Cleveland, OH 44114

 Attention: J.T. Taylor

 (216) 689-4490

 	
  

 	
 $51,063,829.79

 	
  

 	
 $23,936,170.21

 	
  

 	
 3.191489362

 	
 %

 
	
 Nordea Bank Finland

 Plc, New York and

 Cayman Branches

 	
  

 	
 Nordea Bank Finland Plc, New York

 Branch

 437 Madison Avenue

 New York, NY 10022

 Attention: Henrik Steffensen

 (212) 318-9303

 	
  

 	
 $51,063,829.79

 	
  

 	
 $23,936,170.21

 	
  

 	
 3.191489362

 	
 %

 
	
 Sumitomo Mitsui

 Banking Corporation,

 New York

 	
  

 	
 Sumitomo Mitsui Banking

 Corporation, New York

 277 Park Avenue

 New York, NY 10172

 Attention: Ed McColly

 (212) 224-4139

 	
  

 	
 $51,063,829.79

 	
  

 	
 $23,936,170.21

 	
  

 	
 3.191489362

 	
 %

 
	
 SunTrust Bank

 	
  

 	
 SunTrust Bank

 201 Fourth Ave., North

 Nashville, TN 37219

 Attention: Mark D. Mattson

 (615) 748-4831

 	
  

 	
 $51,063,829.79

 	
  

 	
 $23,936,170.21

 	
  

 	
 3.191489362

 	
 %

 
	
 Wells Fargo Bank,

 National Association

 	
  

 	
 Wells Fargo Bank, National

 Association

 550 5th Avenue 19th FL

 New York, NY 10036

 Attention: Megan Donnelly

 (212) 805-1613

 	
  

 	
 $51,063,829.79

 	
  

 	
 $23,936,170.21

 	
  

 	
 3.191489362

 	
 %

 
	
 Fortis Capital Corp.

 	
  

 	
 Fortis Capital Corp.

 C/O 520 Madison Avenue, 3rd FL

 New York, NY 10022

 Attention: William Rogers
(212) 340-5364

 	
  

 	
 $34,042,553.19

 	
  

 	
 $15,957,446.81

 	
  

 	
 2.127659574

 	
 %

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Manufacturers and

 Traders Trust Company

 	
  

 	
 M&T Bank

 25 S. Charles St. 19th FL

 Baltimore, MD 21201

 Attention: Laurel Magruder

 (410) 244-4297

 	
  

 	
 $   34,042,553.19

 	
  

 	
 $   15,957,446.81

 	
  

 	
 2.127659574

 	
 %

 
	
 U.S. Bank, N.A.

 	
  

 	
 U.S. Bank, N.A.

 150 4th Ave. North, 3rd FL

 Nashville, TN 37219

 Attention: Thomas A. Heckman

 (615) 251-9214

 	
  

 	
 $   34,042,553.19

 	
  

 	
 $   15,957,446.81

 	
  

 	
 2.127659574

 	
 %

 
	
 Union Bank of

 California, N.A.

 	
  

 	
 Union Bank of California, N.A.

 445 South Figueroa Street, 16th FL

 Los Angeles, CA 90071

 Attention: Michael Tschida

 (213) 236-5273

 	
  

 	
 $   27,234,042.55

 	
  

 	
 $   12,765,957.45

 	
  

 	
 1.702127659

 	
 %

 
	
 The Bank of New York

 	
  

 	
 The Bank of New York

 One Wall St., 22nd FL

 New York, NY 10286

 Attention: John Lokay

 (212) 635-1172

 	
  

 	
 $   20,425,531.91

 	
  

 	
 $   9,574,468.09

 	
  

 	
 1.276595744

 	
 %

 
	
 The Northern Trust

 Company

 	
  

 	
 The Northern Trust Company

 50 South LaSalle Street, L-8

 Chicago, IL 60603

 Attention: Courtney L. O’Connor

 (312) 557-5126

 	
  

 	
 $   20,425,531.91

 	
  

 	
 $   9,574,468.09

 	
  

 	
 1.276595744

 	
 %

 
	
 Commerce Bank, N.A.

 	
  

 	
 Commerce Bank, N.A.

 1701 Route 70 East

 Cherry Hill, NJ 08034

 Attention: Jamison T. Tranfalia

 (856) 874-2458

 	
  

 	
 $   13,617,021.28

 	
  

 	
 $   6,382,978.72

 	
  

 	
 .851063829

 	
 %

 
	
 Chang Hwa

 Commercial Bank, Ltd.,

 Los Angeles Branch

 	
  

 	
 Chang Hwa Commercial Bank, Ltd.

 333 South Grand Avenue, Suite 600

 Los Angeles, California 90071

 Attention: Jessy Liu

 (213) 620-7200 ext. 230

 	
  

 	
 $   10,212,765.96

 	
  

 	
 $   4,787,234.04

 	
  

 	
 .638297872

 	
 %

 
	
 Taipei Fubon

 Commercial Bank, New

 York Agency

 	
  

 	
 Taipei Fubon Bank, New York Agency

 100 Wall St. 14th FL

 New York, NY 10005

 Attention: Mr. MS Wu

 (212) 968-9888 ext: 16

 	
  

 	
 $   10,212,765.96

 	
  

 	
 $   4,787,234.04

 	
  

 	
 .638297872

 	
 %

 
	
 TOTAL AMOUNTS:

 	
  

 	
  

 	
  

 	
 $1,600,000,000.00

 	
  

 	
 $750,000,000.00

 	
  

 	
 100.000000000

 	
 %

 

SCHEDULE 2.3(c) 

LETTERS OF CREDIT

None.

SCHEDULE 6.10

LITIGATION

None.

SCHEDULE 6.21 

SUBSIDIARIES

MATERIAL
DOMESTIC SUBSIDIARIES1

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Subsidiary

 	
  

 	
 Ownership

 	
  

 	
 Jurisdiction of

 Incorporation /

 Organization

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
 American Medical Laboratories, Incorporated2

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)3

 	
  

 	
 Delaware

 
	
 AML
 Inc.

 	
  

 	
 American
 Medical Laboratories, Incorporated

 	
  

 	
 Delaware

 
	
 APL Properties Limited Liability Company

 	
  

 	
 Quest Diagnostics Incorporated (NV), f/k/a APL Healthcare Group, Inc.

 	
  

 	
 Nevada

 
	
 Central Plains Holdings, Inc.4

 	
  

 	
 LabOne, Inc.

 	
  

 	
 Kansas

 
	
 Central Plains Laboratories, LLC5

 	
  

 	
 Central Plains Holdings, Inc.

 	
  

 	
 Kansas

 
	
 Diagnostic Reference Services Inc.

 	
  

 	
 Quest Diagnostics Incorporated (MD)

 	
  

 	
 Maryland

 
	
 DPD
 Holdings Inc.

 	
  

 	
 Quest Diagnostics Incorporated (DE)

 	
  

 	
 Delaware

 
	
 Enterix Inc.6

 	
  

 	
 Quest Diagnostics Incorporated (DE)

 	
  

 	
 Delaware

 
	
 ExamOne World Wide, Inc.7

 	
  

 	
 LabOne, Inc.

 	
  

 	
 Pennsylvania

 

	
  

 
	

 

 

1 Certain of the subsidiaries listed may not meet the definition of “Material Subsidiary” but are included as Guarantors. Neither
AmeriPath nor any of its wholly-owned domestic subsidiaries are Material Domestic Subsidiaries as of the date of the Credit
Agreement, based on the last proviso in the definition of Material Domestic Subsidiary in said Agreement.

2 American Medical Laboratories, Incorporated and its subsidiaries, AML
Inc., Quest Diagnostics Incorporated (NV) (f/k/a
APL Healthcare Group, Inc.), Quest Diagnostics Nichols Institute, Inc. (f/k/a Medical Laboratories Corporation), and APL Properties Limited Liability
Company, were acquired on 4/1/02.

3 The state designations are included for clarification only and are not
part of the legal name.

4 Acquired November 1, 2005 as part of the LabOne, Inc. acquisition.

5 Acquired November 1, 2005 as part of the LabOne, Inc. acquisition.

6
Acquired August 31, 2006.

7 Acquired November 1, 2005 as part of the LabOne, Inc. acquisition.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ExamOne World Wide of NJ, Inc.8

 	
  

 	
 ExamOne
 World Wide, Inc.

 	
  

 	
 New Jersey

 
	
 FNA Clinics of America, Inc., f/k/a Unilab Acquisition
 Corporation

 	
  

 	
 Unilab
 Corporation

 	
  

 	
 Delaware

 
	
 Focus
 Diagnostics, Inc.9

 	
  

 	
 Focus
 Technologies Holding Company

 	
  

 	
 Delaware

 
	
 Focus Technologies Holding Companyl0 

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Delaware

 
	
 LabOne, Inc.11

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Missouri

 
	
 LabOne of Ohio, Inc.12

 	
  

 	
 LabOne, Inc.

 	
  

 	
 Delaware

 
	
 MedPlus,
 Inc.

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Ohio

 
	
 MetWest Inc.

 	
  

 	
 DPD Holdings
 Inc. (DE)

 	
  

 	
 Delaware

 
	
 Nichols
 Institute Diagnostics

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 California

 
	
 Osborn Group Inc.13

 	
  

 	
 LabOne, Inc.

 	
  

 	
 Delaware

 
	
 Pathology
 Building Partnership

 	
  

 	
 Diagnostic Reference Services Inc. (MD) - 50%; Quest
 Diagnostics Incorporated (MD) – 50%

 	
  

 	
 Maryland

 
	
 Quest Diagnostics Clinical Laboratories, Inc.

 	
  

 	
 Quest Diagnostics Holdings Incorporated (DE)

 	
  

 	
 Delaware

 
	
 Quest Diagnostics Finance Incorporated

 	
  

 	
 Quest Diagnostics Investments Incorporated (DE)

 	
  

 	
 Delaware

 
	
 Quest Diagnostics Holdings Incorporated

 	
  

 	
 Quest Diagnostics Incorporated (DE)

 	
  

 	
 Delaware

 

	
  

 
	

 

 

8 Acquired November 1, 2005 as part of the LabOne, Inc. acquisition. 

9 Acquired July 3, 2006.

10 Acquired July 3, 2006.

11 Acquired November 1, 2005.

12 Acquired November
1, 2005 as part of the LabOne, Inc. acquisition.

13 Acquired November
1, 2005 as part of the LabOne, Inc. acquisition.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Quest
 Diagnostics Nichols Institute,
 f/k/a Quest Diagnostics Incorporated (CA)

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 California

 
	
 Quest Diagnostics
 Incorporated (MD)

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Maryland

 
	
 Quest Diagnostics
 Incorporated (MI)

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Michigan

 
	
 Quest Diagnostics
 Incorporated (NV) (f/k/a APL Healthcare Group,
 Inc.)

 	
  

 	
 AML Inc.

 	
  

 	
 Nevada

 
	
 Quest
 Diagnostics Investments Incorporated

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Delaware

 
	
 Quest
 Diagnostics LLC (CT)14

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Connecticut

 
	
 Quest
 Diagnostics LLC (IL)

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Illinois

 
	
 Quest
 Diagnostics LLC (MA)15

 	
  

 	
 Quest
 Diagnostics Incorporated (DE) 3

 	
  

 	
 Massachusetts

 
	
 Quest
 Diagnostics Nichols Institute,
 Inc., f/k/a Medical Laboratories
 Corporation

 	
  

 	
 AML Inc.

 	
  

 	
 Virginia

 
	
 Quest
 Diagnostics of Pennsylvania Inc.

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Delaware

 
	
 Systematic Business
 Services, Inc.16

 	
  

 	
 LabOne, Inc.

 	
  

 	
 Missouri

 
	
 Unilab
 Corporation17

 	
  

 	
 Quest
 Diagnostics Incorporated (DE)

 	
  

 	
 Delaware

 

	
  

 
	

 

 

14 Successor to Quest Diagnostics Incorporated, a Connecticut corporation, which has dissolved.

15 Successor by merger to
Quest Diagnostics Incorporated, a Massachusetts corporation.

16 Acquired November
1, 2005 as part of the LabOne, Inc. acquisition.

17 Incorporated 3/20/02 as Quest Diagnostics Newco Incorporated (“Newco”).
Borrower acquired Unilab Corporation and its
subsidiary, Unilab Acquisition Corporation, on 2/28/03. The acquired Unilab was
merged into Newco on 2/28/02 and Newco changed its name
to Unilab Corporation.

List
of all Subsidiaries and Joint Ventures of Borrower as of the Closing Date

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 100%

 	
 Quest Diagnostics Holdings Incorporated (f/k/a SBCL,
 Inc.) (DE) 

 
	
  

 	
 100% 

 	
 Quest Diagnostics Clinical Laboratories, Inc. (f/k/a
 SmithKline Beecham Clinical Laboratories, Inc.) (DE)

 
	
  

 	
  

 	
 (33-113%)

 	
 Compunet Clinical Laboratories (OH)

 
	
  

 	
  

 	
 (44%)

 	
 Mid America Clinical Laboratories (IN)

 
	
  

 	
  

 	
 (51%)

 	
 Diagnostic Laboratory of Oklahoma LLC (OK)

 
	
  

 	
  

 
	
 100%

 	
 Quest Diagnostics Nichols Institute (f/k/a Quest
 Diagnostics Incorporated) (CA)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 100%

 	
 Quest
 Diagnostics Incorporated (MD)

 
	
  

 	
  

 	
 100%

 	
 Diagnostic
 Reference Services Inc. (MD)

 
	
  

 	
  

 	
  

 	
 50%

 	
 Pathology
 Building Partnership (MD) (gen.

 
	
  

 	
  

 	
  

 	
  

 	
 ptnrshp.) (other 50% is owned by Quest

 
	
  

 	
  

 	
  

 	
  

 	
 Diagnostics Incorporated (MD))

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 100%

 	
 Quest
 Diagnostics Incorporated (MI)

 
	
  

 	
  

 
	
 100%

 	
 Quest Diagnostics Investments Incorporated (DE) 

 
	
  

 	
 100% 

 	
 Quest Diagnostics Finance Incorporated (DE

 
	
  

 	
  

 	
  

 
	
 100%

 	
 Quest
 Diagnostics LLC (IL) 

 
	
 100% 

 	
 Quest Diagnostics LLC (MA) 

 
	
 100%

 	
 Quest
 Diagnostics LLC (CT)

 
	
  

 	
  

 	
  

 
	
 100%

 	
 Unilab
 Corporation (DE)

 
	
  

 	
 100%

 	
 FNA Clinics of America, Inc. (f/k/a Unilab Acquisition Corporation) (DE)

 
	
 100%

 	
 Quest Diagnostics of Pennsylvania Inc. (DE)

 
	
  

 	
 51%

 	
 Quest Diagnostics Venture LLC (PA)

 
	
  

 	
  

 	
 53.5%

 	
 Associated
 Clinical Laboratories (PA) (gen. ptnrshp.)

 
	
  

 	
  

 	
  

 	
 100%

 	
 North Coast General Services, Inc. (PA)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 100%

 	
 Quest
 Diagnostics of Puerto Rico, Inc 

 
	
 100% 

 	
 Quest Diagnostics Receivables Inc. (DE)

 
	
  

 	
  

 
	
 100%

 	
 Quest Diagnostics Ventures LLC (DE)

 
	
  

 	
  

 
	
 100%

 	
 DPD
 Holdings, Inc. (DE)

 
	
  

 	
 100%

 	
 MetWest Inc. (DE)

 
	
  

 	
  

 	
 100%

 	
 Diagnostic Path Lab, Inc. (TX)

 
	
  

 	
  

 	
 100%

 	
 Quest Diagnostics Provider Network, LLC (CO) 

 
	
  

 	
  

 	
 49%

 	
 Sonora
 Quest Laboratories LLC (AZ)

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 100%

 	
 American Medical Laboratories, Incorporated (DE)

 
	
  

 	
 100%

 	
 AML
 Inc. (DE)

 
	
  

 	
  

 	
 100%

 	
 Quest Diagnostics Nichols Institute, Inc. (f/kla
 Medical Laboratories Corporation) (VA)

 
	
  

 	
  

 	
 100%

 	
 Quest Diagnostics Incorporated (NV)

 
	
  

 	
  

 	
  

 	
 100%

 	
 APL Properties Limited Liability Company (NV)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 100%

 	
 Enterix
 Inc. (DE)

 
	
  

 	
 100%

 	
 Enterix (Australia) Pty Limited (Australia) 

 
	
  

 	
 100%

 	
 Enterix Pty Limited (Australia)

 
	
  

 	
  

 	
 100%

 	
 Enterix
 UK Limited (UK)

 
	
  

 	
  

 	
  

 	
  

 
	
 100%

 	
 Focus Technologies Holding Company (DE)

 
	
  

 	
 100%

 	
 Focus
 Diagnostics, Inc. (DE)

 
	
  

 	
  

 	
  

 
	
 100%

 	
 HemoCue,
 Inc. (CA)

 
	
 100%

 	
 QDI
 Acquisition AB (Sweden)

 
	
  

 	
 100%

 	
 POCT
 Holding AB (Sweden)

 
	
  

 	
  

 	
 100%

 	
 HemoCue Holding AB (Sweden)

 
	
  

 	
  

 	
  

 	
 100%

 	
 HemoCue AB (Sweden)

 
	
  

 	
  

 	
  

 	
  

 	
 100%     HemoCue Oy (Finland)

 
	
  

 	
  

 	
  

 	
 100%

 	
 HemoCue
 GmbH (Germany)

 
	
  

 	
  

 	
  

 	
 99.7%

 	
 HemoCue AG (Switzerland) (other 0.3% held by Glanzmann Muller and Bauman in trust
 for HemoCue Holding AB)

 
	
  

 	
  

 	
  

 	
 100%

 	
 Biotest Medizintechnik GmbH (Germany) 

 
	
  

 	
  

 	
  

 	
 100%

 	
 HemoCue Diagnostics B.V. (The Netherlands) 

 
	
  

 	
  

 	
  

 	
 100%

 	
 HC Diagnostics, Limited (UK)

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 100%

 	
 Lab
 Portal, Inc. (DE)

 
	
  

 	
  

 
	
 100%

 	
 LabOne,
 Inc. (MO)

 
	
  

 	
 100%

 	
 ExamOne World Wide, Inc. (PA)

 
	
  

 	
  

 	
 100%

 	
 ExamOne World Wide of NJ, Inc. (NJ) 

 
	
  

 	
 100%

 	
 Systematic
 Business Services, Inc. (MO)

 
	
  

 	
  

 	
 100%

 	
 Scan Tech Solutions, LLC (MO) 

 
	
  

 	
 100%

 	
 LabOne,
 L.L.C. (KS)

 
	
  

 	
 100%

 	
 Central
 Plains Holdings, Inc. (KS)

 
	
  

 	
  

 	
 100%

 	
 Central Plains Laboratories, LLC (KS) 

 
	
  

 	
 100%

 	
 Lab
 One Canada, Inc. (Ontario)

 
	
  

 	
  

 	
 100%

 	
 ExamOne Canada, Inc. (Ontario)

 
	
  

 	
  

 	
  

 	
 100%

 	
 Rapid-Med Plus Franchise Corporation (Ontario) 

 
	
  

 	
 100%

 	
 LabOne of Ohio, Inc. (DE)

 
	
  

 	
 100%

 	
 Osborn Group Inc. (DE)

 
	
  

 	
  

 	
 100%

 	
 Intellisys, Inc. (GA)

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 100%

 	
 Lifepoint Medical Corporation (DE)

 
	
  

 	
 100%

 	
 C&S Clinical Laboratory, Inc. (d/b/a Clinical
 Diagnostic Services) (NJ)

 
	
  

 	
  

 	
  

 
	
 100%

 	
 MedPlus, Inc. (OH)

 
	
  

 	
 100%

 	
 Worktiviti, Inc. (fka Universal Document Management
 Systems, Inc.) (OH)

 
	
  

 	
 100%

 	
 Valcor
 Associates Inc. (PA)

 
	
  

 	
  

 	
  

 
	
 100%

 	
 Nichols
 Institute Diagnostics (CA)

 
	
  

 	
  

 
	
 100%

 	
 Nichols Institute Diagnostics Limited (UK)

 
	
  

 	
  

 
	
 100%

 	
 Nichols Institute Diagnostics Trading AG (Switzerland)

 
	
  

 	
  

 
	
 100%

 	
 Nichols Institute Diagnostika GmbH (Germany)

 
	
  

 	
 100%

 	
 Nichols Institute Diagnostika GmbH (Austria)

 
	
  

 	
  

 	
  

 
	
 100%

 	
 Nichols Institute International Holding B.V.
 (Netherlands)

 
	
  

 	
 100%

 	
 Nichols Institute Diagnostics B.V. (Netherlands) 

 
	
  

 	
 100%

 	
 Nichols
 Institute Diagnostics SARL (France)

 
	
  

 	
  

 	
  

 
	
 100%

 	
 Nomad
 Massachusetts, Inc. (MA)

 
	
  

 	
 100%

 	
 Quest Diagnostics Mexico, S.A. de C.V. (f/k/a
 Laboratorios Clinicos de Mexico, S.A.de C.V.) (Mexico)**

 
	
  

 	
 100%

 	
 Laboratorio de Analisis Biomedicos, S.A. (Mexico)

 
	
  

 	
  

 	
  

 
	
 100%

 	
 Quest Diagnostics do Brasil Ltda. (Brazil)

 
	
  

 	
  

 
	
 100%

 	
 Quest
 Diagnostics India Private Limited (India)

 
	
  

 	
  

 
	
 100%

 	
 Quest Diagnostics Limited (UK)

 
	
  

 	
 100%

 	
 The Pathology Partnership plc (UK)

 
	
  

 	
  

 	
  

 
	
 19.9%

 	
 Clinical Genomics Pty Ltd. (Australia)

 

	
  

 
	

 

 

** successor by merger with Quest Diagnostics, S.A. de C.V., Analisis, S. A., Servicios de Laboratorio, S.A. de C.V., and Laboratorios
de Frontera Polanco, S.A. de C.V.

List of all Persons that will
become Subsidiaries of the Borrower as of 11:59 p.m. on the
Closing Date, as a result of consummation of the Acquisition

	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Subsidiary
 	
  
 	
 Jurisdiction of 

 Incorporation
 	
  
 	
 Ownership
 
	

 
 	
  
 	

 
 	
  
 	

 
 
	
 AmeriPath Holdings, Inc.
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath Group Holdings, Inc. (100%)
 
	
 AmeriPath Intermediate Holdings, Inc.
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath Holdings, Inc. (100%)
 
	
 AmeriPath, Inc.
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath Intermediate Holdings, Inc. (100%)
 
	
 A. Bernard Ackerman, M.D. Dermatopathology, P.C.
 	
  
 	
 New
 York
 	
  
 	
 *
 
	
 AmeriPath 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Cincinnati, Inc.
 	
  
 	
 Ohio
 	
  
 	
 AmeriPath Ohio Trust, dated 9/30/96, David R. Barron, M.D., Trustee for the benefit of AmeriPath, Inc.
 
	
 AmeriPath Cleveland, Inc.
 	
  
 	
 Ohio
 	
  
 	
 AmeriPath Ohio Trust, dated 9/30/96, David R.
 Barron, M.D., Trustee for the benefit of AmeriPath,
 Inc.
 
	
 AmeriPath Consolidated Labs, Inc.
 	
  
 	
 Florida
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 AmeriPath
 Consulting Pathology Services, P.A.
 	
  
 	
 North Carolina
 	
  
 	*

	
 AmeriPath Florida, LLC
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Hospital Services Florida, LLC
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Indemnity, Ltd.
 	
  
 	
 Cayman Islands
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 AmeriPath Indiana, LLC
 	
  
 	
 Indiana
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Indianapolis, P.C.
 	
  
 	
 Indiana
 	
  
 	*

	
 AmeriPath
 Institute of Urological Pathology, P.C.
 (f/k/a J.J. Humes M.D. and Assoc.)
 	
  
 	
 Michigan
 	
  
 	*

	
 AmeriPath Kentucky, Inc.
 	
  
 	
 Kentucky
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 AmeriPath
 Lubbock 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Lubbock Outpatient 5.01(a) Corporation (f/k/a Simpson Pathology 5.01(a)
 Corporation)
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Marketing USA, Inc.
 	
  
 	
 Florida
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 AmeriPath Michigan, Inc.
 	
  
 	
 Michigan
 	
  
 	
 AmeriPath, Inc. (100%)
 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Subsidiary
 	
  
 	
 Jurisdiction of 

 Incorporation
 	
  
 	
 Ownership
 
	

 
 	
  
 	

 
 	
  
 	

 
 
	
 AmeriPath Milwaukee, S.C.
 	
  
 	
 Wisconsin
 	
  
 	*

	
 AmeriPath Mississippi, Inc.
 	
  
 	
 Mississippi
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 AmeriPath New York, LLC
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath North Carolina, Inc.
 	
  
 	
 North Carolina
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 AmeriPath Ohio, Inc.
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 AmeriPath PAT 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Pennsylvania, LLC
 	
  
 	
 Pennsylvania
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Philadelphia, Inc.
 	
  
 	
 New
 Jersey
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 AmeriPath Pittsburgh, P.C.
 	
  
 	
 Pennsylvania
 	
  
 	*

	
 AmeriPath San Antonio 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath SC, Inc.
 	
  
 	
 South Carolina
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 AmeriPath
 Severance 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath
 Texarkana 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Texas, LP
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath,
 LLC, general partner (1%) API No. 2, LLC,
 limited partner (99%)
 
	
 AmeriPath Wisconsin, LLC
 	
  
 	
 Wisconsin
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 AmeriPath Youngstown Labs, Inc.
 	
  
 	
 Ohio
 	
  
 	
 AmeriPath Ohio, Inc. (100%)
 
	
 AmeriPath Youngstown, Inc.
 	
  
 	
 Ohio
 	
  
 	
 AmeriPath Ohio Trust, dated 9/30/96, David R. Barron,
 M.D., Trustee for the benefit of AmeriPath,
 Inc.
 
	
 AmeriPath, LLC
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 Anatomic Pathology Services, Inc.
 	
  
 	
 Oklahoma
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 API No. 2, LLC
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 Arizona Pathology Group, Inc.
 	
  
 	
 Arizona
 	
  
 	
 Strigen, Inc. (100%)
 
	
 Arlington
 Pathology Association 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 Colorado Diagnostic LLC Laboratory
 	
  
 	
 Colorado
 	
  
 	
 Colorado Pathology Consultants, P.C.
 
	
 Colorado Pathology Consultants, P.C.
 	
  
 	
 Colorado
 	
  
 	*

	
 Consulting
 Pathologists of Pennsylvania, P.C.
 	
  
 	
 Pennsylvania
 	
  
 	*

	
 Dermatopathology of Wisconsin, S.C.
 	
  
 	
 Wisconsin
 	
  
 	*

	
 Dermatopathology Services, Inc.
 	
  
 	
 Alabama
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 DFW 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Diagnostic Pathology Management Services, LLC
 	
  
 	
 Oklahoma
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 Diagnostic Pathology Services, P.C.
 	
  
 	
 Oklahoma
 	
  
 	*

	
 Institute for Dermatopathology, P.C.
 	
  
 	
 Pennsylvania
 	
  
 	*

	
 Jill A. Cohen, M.D., Inc.
 	
  
 	
 Arizona
 	
  
 	*

	
 Kailash B. Sharma, M.D., Inc.
 	
  
 	
 Georgia
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 Kilpatrick Pathology, P.A.
 	
  
 	
 North Carolina
 	
  
 	*

	
 Nuclear
 Medicine and Pathology Associates
 	
  
 	
 Georgia
 	
  
 	
 Kailash B Sharma, M.D., Inc. (33.333%)
Sharon G.
 Daspit, M.D., Inc. (33.333%)
Peter G. Klacsmann, M.D., Inc. (33.333%
 
	
 NAPA 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 Ocmulgee
 Medical Pathology Association, Inc
 	
  
 	
 Georgia
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 O’Quinn
 Medical Pathology Association, LLC
 	
  
 	
 Georgia
 	
  
 	
 AmeriPath, Inc., sole member
 
	
 PCA of Denver, Inc.
 	
  
 	
 Tennessee
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 PCA of Nashville, Inc.
 	
  
 	
 Tennessee
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 PCA Southeast II, Inc.
 	
  
 	
 Tennessee
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 Peter G. Klacsmann, M.D., Inc.
 	
  
 	
 Georgia
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 Regional Pathology Consultants, LLC
 	
  
 	
 Utah
 	
  
 	
 Strigen, Inc., sole member
 
	
 Rocky Mountain Pathology, LLC
 	
  
 	
 Utah
 	
  
 	
 Strigen, Inc., sole member
 
	
 Rose Pathology Associates, P.C.
 	
  
 	
 Colorado
 	
  
 	*

	
 Sharon G. Daspit, M.D., Inc.
 	
  
 	
 Georgia
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 Shoals Pathology Associates, Inc.
 	
  
 	
 Alabama
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 Southwest Diagnostic Laboratories, P.C.
 	
  
 	
 Colorado
 	
  
 	*

	
 Specialty Laboratories, Inc.
 	
  
 	
 California
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 St. Luke’s Pathology Associates, P.A.
 	
  
 	
 Kansas
 	
  
 	*

	
 Strigen, Inc.
 	
  
 	
 Utah
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 TID Acquisition Corp.
 	
  
 	
 Delaware
 	
  
 	
 AmeriPath, Inc. (100%)
 
	
 Tulsa Diagnostics, P.C.
 	
  
 	
 Oklahoma
 	
  
 	*

	
 TXAR 5.01(a) Corporation
 	
  
 	
 Texas
 	
  
 	
 AmeriPath, Inc., sole member
 

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

SCHEDULE
6.23 

Taxpayer Identification Number of Borrower

The Borrower’s true and correct U.S. taxpayer
identification number is:

16-1387862

SCHEDULE 8.1 

INDEBTEDNESS

Set forth in an attachment is a listing of
the Indebtedness of the Borrower and its

Subsidiaries outstanding at April 30, 2007. All of such Indebtedness will
remain outstanding at

and after the Closing Date except for the Interim Credit Facility, which will
be retired at closing.

Quest Diagnostics Incorporated

April 30, 2007

($ in 000’s)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Interest

 Rate

 	
  

 	
 Maturity

 	
  

 	
 Long Term

 	
  

 	
 Short Term

 	
  

 	
 Total

 	
  

 
	
  

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 
	
 Notes Payable:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Receivable Financing

 	
  

 	
  

 	
 5.580%

 	
  

 	
  

 	
 7/2007

 	
  

 	
  

 	
 0

 	
  

 	
  

 	
 300,000

 	
  

 	
  

 	
 300,000

 	
  

 
	
 Sumitomo Mitsui Term Loan due December 2008

 	
  

 	
  

 	
 5.820%

 	
  

 	
  

 	
 12/2008

 	
  

 	
  

 	
 45,000

 	
  

 	
  

 	
 15,000

 	
  

 	
  

 	
 60,000

 	
  

 
	
 5.125% Senior Notes due November 2010

 	
  

 	
  

 	
 5.125%

 	
  

 	
  

 	
 11/2010

 	
  

 	
  

 	
 399,474

 	
  

 	
  

 	
 0

 	
  

 	
  

 	
 399,474

 	
  

 
	
 5.45% Senior Notes due November 2015

 	
  

 	
  

 	
 5.450%

 	
  

 	
  

 	
 11/2015

 	
  

 	
  

 	
 498,640

 	
  

 	
  

 	
 0

 	
  

 	
  

 	
 498,640

 	
  

 
	
 3.5% Debentures due June 2034

 	
  

 	
  

 	
 3.500%

 	
  

 	
  

 	
 6/2034

 	
  

 	
  

 	
 2,976

 	
  

 	
  

 	
 0

 	
  

 	
  

 	
 2,976

 	
  

 
	
 Industrial Revenue Bonds due September 2009

 	
  

 	
  

 	
 5.525%

 	
  

 	
  

 	
 9/2009

 	
  

 	
  

 	
 3,579

 	
  

 	
  

 	
 1,800

 	
  

 	
  

 	
 5,379

 	
  

 
	
 Interim Credit Facility

 	
  

 	
  

 	
 5.720%

 	
  

 	
  

 	
 1/2008

 	
  

 	
  

 	
 (0

 	
 )

 	
  

 	
 450,000

 	
  

 	
  

 	
 450,000

 	
  

 
	
 7.50% Senior Notes due July 2011

 	
  

 	
  

 	
 7.500%

 	
  

 	
  

 	
 7/2011

 	
  

 	
  

 	
 274,539

 	
  

 	
  

 	
 0

 	
  

 	
  

 	
 274,539

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 
	
 Total Notes Payable

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 1,224,208

 	
  

 	
  

 	
 766,800

 	
  

 	
  

 	
 1,991,008

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Other 3rd Party:

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Focus Lease

 	
  

 	
  

 	
 10.000%

 	
  

 	
  

 	
 6/2010

 	
  

 	
  

 	
 42

 	
  

 	
  

 	
 24

 	
  

 	
  

 	
 66

 	
  

 
	
 Enterix Debt / Lease Obligation

 	
  

 	
  

 	
 11.374%

 	
  

 	
  

 	
 11/2008

 	
  

 	
  

 	
 2

 	
  

 	
  

 	
 4

 	
  

 	
  

 	
 6

 	
  

 
	
 AML Leases

 	
  

 	
  

 	
 8.500%

 	
  

 	
  

 	
 12/2016

 	
  

 	
  

 	
 (5

 	
 )

 	
  

 	
 (5

 	
 )

 	
  

 	
 (10

 	
 )

 
	
 HemoCue Lease Obligation

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 14,622

 	
  

 	
  

 	
 222

 	
  

 	
  

 	
 14,844

 	
  

 
	
 LabOne

 	
  

 	
  

 	
 15.070%

 	
  

 	
  

 	
 8/2008

 	
  

 	
  

 	
 3

 	
  

 	
  

 	
 1

 	
  

 	
  

 	
 4

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 14,664

 	
  

 	
  

 	
 246

 	
  

 	
  

 	
 14,909

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 
	
 Total Long Term / Short Term Debt

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 1,238,872

 	
  

 	
  

 	
 767,046

 	
  

 	
  

 	
 2,005,918

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 	

 

 	

 

 	
  

 

Standby Letters of
Credit ($, as of May 31, 2007)

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Facility Amount

 	
  

 	
 Outstanding

 	
  

 	
 Availability

 	
  

 
	
  

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 
	
 SunTrust
 Banks

 	
  

 	
 $

 	
 60,000,000

 	
  

 	
 $

 	
 49,744,624

 	
  

 	
 $

 	
 10,255,376

 	
  

 
	
 KeyBank, NA

 	
  

 	
 $

 	
 25,000,000

 	
  

 	
 $

 	
 12,604,485

 	
  

 	
 $

 	
 12,395,515

 	
  

 
	
 Wachovia, NA

 	
  

 	
  

 	
  

 	
  

 	
 $

 	
 11,650,215

 	
  

 	
  

 	
  

 	
  

 

No additional debt has been incurred since April 30, 2007.

All Ameripath debt will be retired in accordance with terms
including tender for the 10.50% notes and the redemption of the PIK Notes with
proceeds deposited on the Closing Date with the trustee of the Notes.

The receivables financing facility has been increased from
$300 million to $375 million. At closing, borrowings under the facility are
$300 million.

$500 million revolving credit facility has no borrowings
outstanding; will be terminated concurrent with the establishment of the new facility.

SCHEDULE 8.2

LIENS

	
  

 	
  

 	
  

 	
  

 
	
 Description

 	
  

 	
 Amount of Secured 

 Indebtedness

 as of April 30, 2007

 
	

 

 	
  

 	
 

 
	
 A. Quest Diagnostics

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 Receivable financing
 (Wachovia Bank, N.A. has a lien on receivables that Quest Diagnostics
 Receivables Inc. has purchased from Borrower and its wholly owned
 Subsidiaries)

 	
  

 	
 $300 million

 
	
  

 	
  

 	
  

 	
  

 
	
 2.

 	
 Capitalized leases (debt
 assumed in connection with the Acquisition of American Medical Laboratories,
 Inc., LabOne, Focus Diagnostics, Enterix and HemoCue)

 	
  

 	
 $14.9 million

 

SCHEDULE 8.6

Investments as of April 30, 2007

	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Investment 
 	
  
 	
 Date Invested
 	
  
 	
 Amount 

 Invested
 	
  
 	
 Book Value 

 at 4/30/2007
 	
  
 	
 Unrealized 

 Gain/(Loss)
 	
  
 	
 DGX 

 Ownership %
 	
  
 
	
 
 	
  
 	

 
 	
  
 	

 
 	
  
 	

 
 	
  
 	

 
 	
  
 	

 
 	
  
 
	
 *
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Vasogen, Inc.
 	
  
 	
  
 	
 *
 	
 (1)
 	
 $
 	*
	
  
 	
 $
 	*
	
  
 	
 $
 	*
	 	*
	
  
 	
  
 
	
 Q-Med, Inc.
 	
  
 	
  
 	
 *
 	
 (2)
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	*
	
  
 	*
	
  
 	
  
 
	
 Ciphergen Biosystems, Inc.
 	
  
 	
  
 	*
	
 (3)
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	*
	
  
 	*
	
  
 	
  
 
	
  
 
	
 Ciphergen Biosystems, Inc. Warrants
 	
  
 	
  
 	*
	
 (4)
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	

 
 	

 
 	
  
 	

 
 	

 
 	
  
 	

 
 	

 
 	
  
 	
  
 	
  
 	
  
 
	
 *
 	
  
 	
  
 	
  
 	
  
 	
 $
 	*
	
  
 	
 $
 	*
	
  
 	
 $
 	*
	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	

 
 	

 
 	
  
 	

 
 	

 
 	
  
 	

 
 	

 
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	*
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 GMP Companies Inc
 	
  
 	
  
 	*
	
  
 	
 $
 	*
	
  
 	
 $
 	
 —
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Cengent Therapeutics Inc (Formerly SBI)
 	
  
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	
 —
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Enterix (non-colon cancer)
 	
  
 	
  
 	*
	
 (5)
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	
  
 	
  
 	*
	
  
 	
  
 
	
 Correlogic
 	
  
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	
  
 	
  
 	*
	
  
 	
  
 
	
 Somalogic
 	
  
 	
  
 	*
	
 (6)
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	
  
 	
  
 	*
	
  
 	
  
 
	
 DNA Genotek
 	
  
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	
  
 	
  
 	*
	
  
 	
  
 
	
 Test My Health
    LabOne
 	
  
 	
  
 	
  
 	
 (7)
 	
  
 	*
	
  
 	
  
 	*
	
  
 	
  
 	
  
 	
  
 	*
	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	

 
 	

 
 	
  
 	

 
 	

 
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 *
 	
  
 	
  
 	
  
 	
  
 	
 $
 	*
	
  
 	
 $
 	*
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	

 
 	

 
 	
  
 	

 
 	

 
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 *
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 CompuNet Clinical Labs (CCL)
 	
  
 	
  
 	
 Laboratory
 JV
 	
  
 	
  
 	
 —
 	
  
 	
 $
 	*
	
  
 	
  
 	
  
 	
  
 	
 33
 
 	
 %
 	
  
 
	
  
 
	
 Mid-America Clinical Labs (MACL)
 	
  
 	
  
 	
 Laboratory
 JV
 	
  
 	
  
 	
 —
 	
  
 	
  
 	*
	
  
 	
  
 	
  
 	
  
 	
 44
 
 	
 %
 	
  
 
	
 Sonora Quest Labs (SQL)
 	
  
 	
  
 	
 Laboratory
 JV
 	
  
 	
  
 	
  
 	
  
 	
  
 	*
	
  
 	
  
 	
  
 	
  
 	
 49
 
 	
 %
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	

 
 	

 
 	
  
 	

 
 	

 
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 *

	
  
 	
  
 	
  
 	
  
 	
  
 	
 —
 	
  
 	
 $
 	*
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	

 
 	

 
 	
  
 	

 
 	

 
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 *
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 UPMC
 	
  
 	
  
 	
  
 	
  
 	
  
 	
 —
 	
  
 	
  
 	
 —
 	
  
 	
  
 	
  
 	
  
 	
 51
 
 	
 %
 	
  
 
	
 DLO
 	
  
 	
  
 	
  
 	
  
 	
  
 	
 —
 	
  
 	
  
 	
 —
 	
  
 	
  
 	
  
 	
  
 	
 51
 
 	
 %
 	
  
 
	
 Erie
 	
  
 	
  
 	
  
 	
  
 	
  
 	
 —
 	
  
 	
  
 	
 —
 	
  
 	
  
 	
  
 	
  
 	
 54
 
 	
 %
 	
  
 
	
 Clinical Genomics Pty Ltd
 	
  
 	
  
 	
  
 	
 (5)
 	
  
 	
 —
 	
  
 	
  
 	
 —
 	
  
 	
  
 	
  
 	
  
 	*
	 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 *
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 
	
 Ciphergen Biosystems,
    Inc. (Loan)
 	
  
 	
  
 	
  
 	
  
 	
 $
 	*
	
  
 	
 $
 	*
	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 	
  
 

	(1)	 	Initial Investment of * was made in *, with additional investments of * and * in * and *, respectively. A * was recorded in *.
	(2)	 	Initial Investment of * was made in *, with an additional investment of * in *.
	(3)	 	A * was recorded in *.
        Future market value changes are recorded as * or * in the *.
	(4)	 	Market value changes of the Ciphergen warrants are recognized in the income statement on a * basis.
	(5)	 	The investments in these entities were established in connection with the acquisition of * in *. The consolidated entity is R&D related to * and the cost investment is for all other R&D.
	(6)	 	A * was recorded in *.
	(7)	 	The investment in Test My Health was acquired in connection with the acquisition of * in *.
	 
	 
	 
	 
	 
	 

	*	 	Portions of this Exhibit
        have been omitted pursuant to a request for confidential treatment and
        filed separately with the Securities and Exchange Commission.
	 	 	 

SCHEDULE 8.7

AFFILIATE TRANSACTIONS

	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 GlaxoSmithKline
 plc — Acquisition of SmithKline Beecham Clinical Laboratories, Inc.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Stock and
 Asset Purchase Agreement dated as of February 9, 1999, among SmithKline
 Beecham plc (“SSB”), and SmithKline Beecham Corporation, as sellers, and
 Borrower, as buyer, for the purchase of SSB’s U.S. and certain non-U.S.
 clinical laboratory business.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Related
 Agreements:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 Stockholders
 Agreement;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 Clinical
 Trials Agreement (amended and restated in December 2002); and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 Intellectual
 Property Agreements, including assignments, licenses, etc.

 
	
  

 	
  

 	
  

 	
  

 
	
 2.

 	
 Coming
 Incorporated

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 In
 connection with the 1996 spin-off from Coming Incorporated (“Corning”),
 Borrower and Covance, Inc. (another former Corning subsidiary) entered into a
 tax sharing agreement with Corning that allocates responsibility for federal
 income and various other taxes for 1996 and prior years among the three
 Companies. Coming no longer holds any stock of Borrower.

 

SCHEDULE 11.1

NOTICES

Borrower and other Credit Parties:

Quest
Diagnostics Incorporated 

1290 Wall Street West

Lyndhurst, New Jersey 07071 

Attn: Michael G. Lukas

               Vice
President, Finance

Telephone:          (201)
729-8158

Facsimile:           (201)
393-5903

Administrative Agent:

Administrative Agent’s Office

(for payments and Requests for Credit Extensions):

Bank
of America, N.A. 

101 N. Tryon Street

Mail Code: NC1-001-04-39 

Charlotte, NC 28255

Attention: Katrina Linen 

Telephone: 704-388-3918 

Telecopier: 704-719-8132

Electronic Mail: katrina.linen@bankofamerica.com

Bank
of America, N.A.

New York, NY

Account No. (for Dollars): *

ABA# 026009593

Attn: Credit Services

Ref: Quest Diagnostics Incorporated

Bank
of America, London

Account No. (for Euro): * 

Swift Address: BOFAGB22

Attn: Credit Services

Ref: Quest Diagnostics Incorporated

Bank
of America, London

Account No. (for Sterling): * 

London Sort Code: 16-50-50

Swift Address: BOFAGB22

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

Attn:
Credit Services

Ref: Quest Diagnostics Incorporated

Other Notices as Administrative Agent:

Bank
of America, N.A. 

Agency Management

1455 Market Street

Mail Code: CA5-701-05-19 

San Francisco, CA 94103 

Attention: Angela Lau 

Telephone: 415-436-4000 

Telecopier: 415-503-5008

Electronic Mail: angela.lau@bankofamerica.com

with a copy to:

Bank
of America, N.A.

Portfolio Management

100 N. Tryon Street

Mail Code: NC1-007-17-11

Charlotte, NC 28255

Attention: Richard Hardison

Telephone: 704-386-1185

Telecopier: 704-388-6002

Electronic Mail: richard.c.hardison@bankofamerica.com

ISSUING LENDER:

Bank
of America, N.A. 

Trade Finance Services 

1 Fleet Way

Mail Code: PA6-580-02-30 

Scranton, PA 18507

Attention: John Yzeik 

Telephone: 570-330-4315 

Telecopier: 570-330-4186

Electronic Mail: john.p.yzeik@bankofamerica.com

SWING LINE LENDER:

Bank
of America, N.A.

101 N. Tryon Street

Mail Code: NC1-001-04-39

Charlotte,
NC 28255

Attention: Katrina Linen

Telephone: 704-388-3918

Telecopier: 704-719-8132

Electronic Mail: katrina.linen@bankofamerica.com

Bank
of America, N.A.

New York, NY

Account No.: * 

ABA# 026009593

Attn: Credit Services

Ref: Quest Diagnostics
Incorporated

	 
	 
	 
	 
	 
	 

	*
	 	Portions of this Exhibit have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission.

Exhibit 2.1(c) to

Credit Agreement

	
  

 
	
 FORM OF TERM NOTE

 
	
 May 31, 2007 

 

          FOR
VALUE RECEIVED, QUEST DIAGNOSTICS INCORPORATED, a Delaware corporation (the “Borrower”),
hereby promises to pay to the order of (the “Lender”), at
the office of Bank of America, N.A. (the “Administrative
Agent”) as set forth in that certain Credit Agreement dated as of May 31,
2007 among Quest Diagnostics Incorporated, as Borrower, certain Subsidiaries of
the Borrower, as Guarantors, the Lenders identified therein and Bank of
America, N.A., as Administrative Agent (as the same may be amended, modified,
extended or restated from time to time, the “Credit Agreement”) (or at
such other place or places as the holder of this Term Note may designate), the
aggregate amount of all advances made by the Lender as Term Loans (and not
otherwise repaid), in Dollars and in immediately available funds, on the dates
and in the principal amounts provided in the Credit Agreement, and to pay
interest on the unpaid principal amount of each Term Loan made by the Lender,
at such office, in like money and funds, for the period commencing on the date
of each Term Loan until each Term Loan shall be paid in full, at the rates per
annum and on the dates provided in the Credit Agreement. 

          This
Term Note is one of the Term Notes referred to in the Credit Agreement and
evidences Term Loans made by the Lender thereunder. The Lender shall be
entitled to the benefits of the Credit Agreement. Capitalized terms used in
this Tenn Note have the respective meanings assigned to them in the Credit
Agreement and the terms and conditions of the Credit Agreement are expressly
incorporated herein and made a part hereof. 

          The
Credit Agreement provides for the acceleration of the maturity of the Term
Loans evidenced by this Term Note upon the occurrence of certain events (and
for payment of collection costs in connection therewith) and for prepayments of
Term Loans upon the terms and conditions specified therein. In the event this
Term Note is not paid when due at any stated or accelerated maturity, the
Borrower agrees to pay, in addition to the principal and interest, all costs of
collection, including reasonable attorney fees. 

          Except
as permitted by Section 11.3(b) of the Credit Agreement, this Term Note may not
be assigned by the Lender to any other Person. 

          The
date, amount, type, interest rate and duration of Interest Period (if
applicable) of each Tenn Loan made by the Lender to the Borrower, and each
payment made on account of the principal thereof, shall be recorded by the
Administrative Agent and the Lender on its books; provided that the failure of
the Administrative Agent or the Lender to make any such recordation shall not
affect the obligations of the Borrower to make a payment when due of any amount
owing hereunder or under the Credit Agreement in 

respect of the
Term Loans to be evidenced by this Term Note, and each such recordation shall
be prima facie evidence of the obligations owing under this Term Note absent
manifest error. 

          THIS
TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK. 

          IN
WITNESS WHEREOF, the Borrower has caused this Term Note to be executed as of the
date first above written. 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS INCORPORATED,

 
	
  

 	
 a Delaware
 corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 

2

FORM OF NOTICE OF BORROWING

	
  

 	
  

 	
  

 
	
 TO:

 	
 BANK OF
 AMERICA, N.A., as Administrative Agent

 
	
  

 	
 101 North
 Tryon Street

 
	
  

 	
 NC1-001-04-39

 
	
  

 	
 Charlotte,
 North Carolina 28255

 
	
  

 	
  

 
	
 RE:

 	
 Credit
 Agreement dated as of May 31, 2007 among Quest Diagnostics Incorporated (the
 “Borrower”), certain Subsidiaries of the Borrower as Guarantors, the Lenders
 identified therein and Bank of America, N.A., as Administrative Agent (as the
 same may be amended, modified, extended or restated from time to time, the
 “Credit Agreement”)

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
  

 
	
 DATE:

 	
 _________________

 
	
 ____________________________________________________________________________________________________________

 
	
 ______

 	
  

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 This Notice
 of Borrowing is made pursuant to the terms of the Credit Agreement. All capitalized
 terms used herein unless otherwise defined shall have the meanings set forth
 in the Credit Agreement. 

 
	
  

 	
  

 
	
 2.

 	
 Please be
 advised that the Borrower is requesting a [Revolving][Term] Loan in the
 amount of ___________ [insert type of currency] to be funded on ____________,
 ____ at the interest rate option set forth in paragraph 3 below. 

 
	
  

 	
  

 
	
 3.

 	
 The interest
 rate option applicable to the requested [Revolving][Term] Loan shall be equal
 to: 

 
	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 _________

 	
 the Base
 Rate

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
  

 	
 the Eurocurrency Rate plus the Applicable Percentage for an Interest
 Period of:

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 _________

 	
 one month

 
	
  

 	
  

 	
  

 	
 _________

 	
 two months

 
	
  

 	
  

 	
  

 	
 _________

 	
 three months

 
	
  

 	
  

 	
  

 	
 _________

 	
 six months

 
	
  

 	
  

 	
  

 
	
 4.

 	
 [Immediately
 after giving effect to the making of the requested Revolving Loan and the
 application of the proceeds thereof, (i) the sum of the outstanding Revolving
 Loans plus outstanding LOC Obligations plus outstanding Swing Line

 

	
  

 	
  

 
	
  

 	
 Loans plus outstanding Competitive Bid Loans will be $__________, which is less than or
 equal to the Revolving Committed Amount, (ii) the sum of outstanding LOC
 Obligations shall not exceed the LOC Committed Amount, (iii) the sum of
 outstanding Swing Line Loans shall not exceed the Swing Line Committed Amount
 and (iv) the sum of outstanding Competitive Bid Loans shall not exceed
 $500,000,000.]1

 
	
  

 	
  

 
	
 5.

 	
 The
 representations and warranties made by the Credit Parties in any Credit
 Document are true and correct in all material respects at and as if made on
 the date the requested [Revolving][Term] Loan is made except to the extent
 they expressly and exclusively relate to an earlier date. 

 
	
  

 	
  

 
	
 6.

 	
 No Default
 or Event of Default shall exist and be continuing either prior to or after
 giving effect to the [Revolving][Term] Loan made pursuant to this Notice of
 Borrowing. 

 

	
  

 	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS INCORPORATED,

 
	
  

 	
 a Delaware
 corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 
	

 

 
	
 [Applicable to Revolving Credit Loan only].

 	
  

 
	
  

 	
  

 
	
 2

 	
 Notice of Borrowing

 

FORM OF REVOLVING NOTE

May 31, 2007 

          FOR
VALUE RECEIVED, QUEST DIAGNOSTICS INCORPORATED, a Delaware corporation (the “Borrower”),
hereby promises to pay to the order of (the “Lender”), at the office of
Bank of America, N.A. ( the “Administrative Agent”) as set forth in
that certain Credit Agreement dated as of May 31, 2007 among Quest Diagnostics
Incorporated, as Borrower, certain Subsidiaries of the Borrower, as Guarantors,
the Lenders identified therein and Bank of America, N.A., as Administrative
Agent (as the same may be amended, modified, extended or restated from time to
time, the “Credit Agreement”) (or at such other place or places as the
holder of this Revolving Note may designate), the aggregate amount of all
advances made by the Lender as Revolving Loans (and not otherwise repaid), in
Dollars and in immediately available funds, on the dates and in the principal
amounts provided in the Credit Agreement, and to pay interest on the unpaid
principal amount of each Revolving Loan made by the Lender, at such office, in
like money and funds, for the period commencing on the date of each Revolving
Loan until each Revolving Loan shall be paid in full, at the rates per annum
and on the dates provided in the Credit Agreement. 

          This
Revolving Note is one of the Revolving Notes referred to in the Credit
Agreement and evidences Revolving Loans made by the Lender thereunder. The
Lender shall be entitled to the benefits of the Credit Agreement. Capitalized
terms used in this Revolving Note have the respective meanings assigned to them
in the Credit Agreement and the terms and conditions of the Credit Agreement
are expressly incorporated herein and made a part hereof. 

          The
Credit Agreement provides for the acceleration of the maturity of the Revolving
Loans evidenced by this Revolving Note upon the occurrence of certain events
(and for payment of collection costs in connection therewith) and for
prepayments of Revolving Loans upon the terms and conditions specified therein.
In the event this Revolving Note is not paid when due at any stated or accelerated
maturity, the Borrower agrees to pay, in addition to the principal and
interest, all costs of collection, including reasonable attorney fees. 

          Except
as permitted by Section 11.3(b) of the Credit Agreement, this Revolving Note
may not be assigned by the Lender to any other Person. 

          The
date, amount, type, interest rate and duration of Interest Period (if
applicable) of each Revolving Loan made by the Lender to the Borrower, and each
payment made on account of the principal thereof, shall be recorded by the
Administrative Agent and the Lender on its books; provided that the failure of
the Administrative Agent or the Lender to make any such recordation shall not
affect the obligations of the Borrower to make a 

payment when
due of any amount owing hereunder or under the Credit Agreement in respect of
the Revolving Loans to be evidenced by this Revolving Note, and each such
recordation shall be prima facie evidence of the obligations owing under this
Revolving Note absent manifest error. 

          THIS
REVOLVING NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK. 

          IN
WITNESS WHEREOF, the Borrower has caused this Revolving Note to be executed as
of the date first above written. 

	
  

 	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS INCORPORATED,

 
	
  

 	
 a Delaware
 corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 FORM OF 

 SWING LINE LOAN REQUEST

 
	
  

 	
  

 	
  

 
	
 TO:

 	
 BANK OF
 AMERICA, N.A., as Swing Line Lender 

 101 North Tryon Street 

 NC1-001-04-39 

 Charlotte, North Carolina 28255 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	
 Credit
 Agreement dated as of May 31, 2007 among Quest Diagnostics Incorporated (the
 “Borrower”), certain Subsidiaries of the Borrower, as Guarantors, Bank of
 America, N.A., as Administrative Agent, and the Lenders party thereto (as the
 same may be amended, modified, extended or restated from time to time, the
 “Credit Agreement”) 

 	
  

 
	
  

 	
  

 	
  

 
	
 DATE:

 	
 _____________________

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 _____________________________________________________________________________________________________________________________

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 This Swing
 Line Loan Request is made pursuant to the terms of the Credit Agreement. All
 capitalized terms used herein unless otherwise defined shall have the
 meanings set forth in the Credit Agreement. 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.

 	
  Please
 be advised that the Borrower is requesting a Swing Line Loan on the terms set
 forth below: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (A)

 	
  

 	
 Principal
 amount of requested Swing Line Loan

 	
 __________________________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (B)

 	
  

 	
 Date of
 requested Swing Line Loan

 	
 __________________________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3.

 	
 Immediately
 after giving effect to the making of the requested Swing Line Loan and the
 application of the proceeds thereof, (i) the sum of the outstanding Revolving
 Loans plus outstanding LOC Obligations plus outstanding Swing Line Loans plus
 outstanding Competitive Bid Loans will be $     , which is less than or equal to
 the Revolving Committed Amount, (ii) the sum of outstanding LOC Obligations
 shall not exceed the LOC Committed Amount, (iii) the sum of outstanding Swing
 Line Loans shall not exceed the Swing Line 

 

	
  

 	
  

 
	
  

 	
 Committed
 Amount and (iv) the sum of outstanding Competitive Bid Loans shall not exceed
 $500,000,000.

 

	
  

 	
  

 
	
 4.

 	
 The
 representations and warranties made by the Credit Parties in any Credit
 Document are true and correct in all material respects at and as if made on
 the date the requested Swing Line Loan is made except to the extent they
 expressly and exclusively relate to an earlier date. 

 
	
  

 	
  

 
	
 5.

 	
 No Default
 or Event of Default shall exist and be continuing either prior to or after
 giving effect to the Swing Line Loans made pursuant to this Swing Line Loan
 Request. 

 

	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS 

 INCORPORATED,

 
	
  

 	
 a Delaware
 corporation

 

	
  

 	
  

 	
  

 
	
  

 	
  By: 

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
  Name: 

 	
  

 
	
  

 	
  

 	
 

 

	
  

 	
  

 	
  

 
	
  

 	
    Title: 

 	
  

 
	
  

 	
  

 	

 

 

2

FORM OF

SWING LINE LOAN NOTE

	
  

 	
  

 
	
 $50,000,000

 	
 May 31, 2007

 

          FOR
VALUE RECEIVED, QUEST DIAGNOSTICS INCORPORATED, a Delaware corporation (the “Borrower”),
hereby promises to pay to the order of Bank of America, N.A. (the “Swing
Line Lender”), at the office of the Swing Line Lender, as set forth in that
certain Credit Agreement, dated as of May 31, 2007, among the Borrower, the
Subsidiaries of the Borrower as Guarantors, the Lenders party thereto (including
the Swing Line Lender) and Bank of America, N.A. as Administrative Agent (as
amended, modified, extended or restated from time to time, the “Credit
Agreement”), the principal amount of FIFTY MILLION DOLLARS ($50,000,000)
(or such lesser amount as shall equal the aggregate unpaid principal amount of
the Swing Line Loans made by the Swing Line Lender to the Borrower under the
Credit Agreement), in lawful money of the United States of America and in
immediately available funds, on the dates and in the principal amounts provided
in the Credit Agreement, and to pay interest on the unpaid principal amount of
each such Swing Line Loan, at such office, in like money and funds, for the
period commencing on the date of each Swing Line Loan until each Swing Line
Loan shall be paid in full, at the rates per annum and on the dates provided in
the Credit Agreement. 

          This
Note is the Swing Line Loan Note referred to in the Credit Agreement and
evidences Swing Line Loans made by the Swing Line Lender thereunder.
Capitalized terms used in this Swing Line Loan Note and not otherwise defined
shall have the respective meanings assigned to them in the Credit Agreement and
the terms and conditions of the Credit Agreement are expressly incorporated
herein and made a part hereof. 

          The
Credit Agreement provides for the acceleration of the maturity of the Swing
Line Loans evidenced by this Swing Line Loan Note upon the occurrence of
certain events (and for payment of collection costs in connection therewith)
and for prepayments of Swing Line Loans upon the terms and conditions specified
therein. In the event this Swing Line Loan Note is not paid when due at any
stated or accelerated maturity, the Borrower agrees to pay, in addition to
principal and interest, all costs of collection, including reasonable,
documented attorney fees. 

          The
date, amount and interest rate of each Swing Line Loan made by the Swing Line
Lender to the Borrower, and each payment made on account of the principal
thereof, shall be recorded by the Swing Line Lender on its books; provided that
the failure of the Swing Line Lender to make any such recordation or
endorsement shall not affect the 

obligation of the Borrower to make a payment when due
of any amount owing hereunder or under this Swing Line Loan Note in
respect of the Swing Line Loans to be evidenced by this Swing Line Loan Note,
and each such recordation or endorsement shall be prima facie evidence of such
information, absent manifest error. 

          THIS
SWING LINE LOAN NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK. 

          IN
WITNESS WHEREOF, the Borrower has caused this Swing Line Loan Note to be
executed as of the date first above written. 

	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS INCORPORATED,

 
	
  

 	
 a Delaware
 corporation

 

	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 

2

FORM OF COMPETITIVE BID REQUEST

	
  

 	
  

 	
  

 
	
TO:

	
 BANK OF AMERICA, N.A., as
 Administrative Agent 

 101 North Tryon Street

 NC 1-001-04-39

 Charlotte, North Carolina 28255

 	
  

 
	
  

 	
  

 	
  

 
	
 RE:

 	
 Credit Agreement dated as
 of May 31, 2007 among Quest Diagnostics
 Incorporated (the “Borrower”), certain Subsidiaries of the Borrower, as Guarantors, Bank of America, N.A., as Administrative Agent, and the
 Lenders party thereto (as the same
 may be amended, modified, extended
 or restated from time to time, the “Credit Agreement”)

 	
  

 
	
  

 	
  

 	
  

 
	
 DATE: ______________, 200

 	
  

 
	
  

 
	
 _____________________________________________________________________________________________________________________________

 

	
  

 	
  

 	
  

 
	
	
 This
 Competitive Bid Request is made pursuant to the terms of the Credit Agreement. Capitalized
 terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in
 the Credit Agreement.

 
	
  

 	
  

 	
  

 
	
 2.

 	
 Please
 be advised that the Borrower is requesting quotes for a proposed Competitive Bid Loan
 and in connection therewith sets forth below the terms of such proposed Competitive Bid Loan:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (A)

 	
Date of requested Competitive Bid Loan

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (B)

 	
Principal amount of requested Competitive
 Bid Loan

 	
 $

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (C)

 	
Interest Period(s) and the last day thereof

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 

	
  

 	
  

 
	
3.

	
 Immediately
 after giving effect to the making of the requested Competitive Bid Loan and the
 application of the proceeds thereof, (i) the sum of the outstanding Revolving Loans plus outstanding LOC
 Obligations plus outstanding Swing Line Loans plus outstanding Competitive Bid Loans will be $     , which
 is less than or equal to the Revolving Committed Amount, (ii) the sum of

 

	
  

 	
  

 
	
  

 	
 outstanding
 LOC Obligations shall not exceed the LOC Committed Amount, (iii) the sum of
 outstanding Swing Line Loans shall not exceed the Swing Line Committed Amount
 and (iv) the sum of outstanding Competitive Bid Loans shall not exceed $500,000,000.

 
	
  

 	
  

 
	
 4.

 	
 The
 representations and warranties made by the Credit Parties in any Credit Document are true and
 correct in all material respects at and as if made on the date the requested
 Competitive Bid Loan is made except to the extent they expressly and
 exclusively relate to an earlier date.

 
	
  

 	
  

 
	
 5.

 	
 No
 Default or Event of Default shall exist and be continuing either prior to or after giving effect to the Competitive Bid
 Loan made pursuant to this Competitive Bid Request.

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS INCORPORATED, 

 a Delaware corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 

2

	
  

 	
  

 
	
  

 	
 Exhibit 2.5(g) to
Credit
 Agreement 

 

FORM OF

COMPETITIVE BID LOAN NOTE

___________, 200

          FOR
VALUE RECEIVED, QUEST DIAGNOSTICS INCORPORATED, a Delaware corporation
(the “Borrower”), hereby promises to pay to the order of (the “Lender”),
at the office of Bank of America, N.A. (the “Administrative Agent”)
as set forth in that certain Credit Agreement dated as of May 31, 2007 among the Borrower, certain Subsidiaries of
the Borrower, as Guarantors, the Lenders
named therein (including the Lender) and Bank of America, N.A., as Administrative
Agent (as the same may be amended, modified, extended or restated from time to time, the “Credit Agreement”) (or at
such other place or places as the holder of this Competitive Bid Loan Note may designate), the aggregate amount of
all advances made by the Lender as
Competitive Bid Loans (and not otherwise repaid) in lawful money and in immediately available funds, on the
dates and in the principal amounts provided
in the Credit Agreement, and to pay interest on the unpaid principal amount of
each Competitive Bid Loan made by the Lender, at such office, in like money and
funds, for the period commencing on
the date of each Competitive Bid Loan until each Competitive Bid Loan shall be paid in full, at the rates per annum and
on the dates provided in the Credit Agreement.

          This
Note is one of the Competitive Bid Loan Notes referred to in the Credit Agreement and evidences
Competitive Bid Loans made by the Lender thereunder. The Lender shall be entitled
to the benefits of the Credit Agreement. Capitalized terms used in this Competitive Bid
Loan Note have the respective meanings assigned to them in the Credit Agreement
and the terms and conditions of the Credit Agreement are expressly incorporated herein and
made a part hereof

          The
Credit Agreement provides for the acceleration of the maturity of the Competitive Bid Loans
evidenced by this Competitive Bid Loan Note upon the occurrence of certain events (and for payment
of collection costs in connection therewith) and for prepayments of Competitive
Bid Loans upon the teams and conditions specified therein. In the event this Competitive Bid Loan Note is not paid when due
at any stated or accelerated maturity, the Borrower agrees to pay, in addition
to the principal and interest, all
costs of collection, including reasonable attorney fees.

          Except
as permitted by Section 11.3(b) of the Credit Agreement, this Competitive Bid Loan Note may not be assigned by the Lender to
any other Person.

          THIS
COMPETITIVE BID LOAN NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          IN
WITNESS WHEREOF, the Borrower has caused this Competitive Bid Loan Note to be executed as
of the date first above written.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS INCORPORATED, 

 a Delaware corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title: 

 	
  

 
	
  

 	
  

 	

 

 

2

FORM OF NOTICE OF CONTINUATION/CONVERSION

	
  

 	
  

 	
  

 
	
 TO:

 	
 BANK OF AMERICA, N.A., as Administrative Agent 

 101 North Tryon Street

 NC 1-001-04-39

 Charlotte, North Carolina 28255

 	
  

 
	
  

 	
  

 	
  

 
	
 RE:

 	
 Credit Agreement dated as of May 31, 2007 among
 Quest Diagnostics Incorporated (the “Borrower”), certain Subsidiaries of the Borrower, as
 Guarantors, Bank of America, N.A., as Administrative Agent, and the Lenders party
 thereto (as the same may be amended, modified, extended or restated from
 time to time, the “Credit Agreement”)

 	
  

 

DATE:       __________________

	
  

 	
  

 	
  

 
	
_____________________________________________________________________________________________________________________________________

 
	
  

 	
  

 	
  

 
	
 

 	
 This
 Notice of Continuation/Conversion is made pursuant to the terms of the Credit
 Agreement. All capitalized terms used herein unless otherwise defined shall have the
 meanings set forth in the Credit Agreement.

 
	
  

 	
  

 
	
 2.

 	
 Please
 be advised that the Borrower is requesting that a portion of the current outstanding Revolving
 Loans in the amount of $ __________ currently accruing interest at __________ be extended or
 converted as of ________ at the interest rate option set forth in paragraph 3 below.

 
	
  

 	
  

 	
  

 
	
 3.

 	
 The
 interest rate option applicable to the continuation or conversion of all or
 part of the existing Revolving Loans (as set forth above) shall be equal to:

 
	
  

 	
  

 
	
  

 	
 a.

 	
 ___________
 the Base Rate

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
                       the Eurocurrency Rate plus the Applicable Percentage for an Interest Period of:

 

	
  

 	
  

 	
  

 
	
  

 	
 ____________

 	
 one month

 
	
  

 	
 ____________

 	
two months

 
	
  

 	
 ____________

 	
 three
 months 

 
	
  

 	
 ____________

 	
 six months

 

	
  

 	
  

 
	
 4.

 	
 As of
 the date hereof, no Default or Event of Default has occurred and is continuing.

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUEST
 DIAGNOSTICS INCORPORATED, 

 a Delaware corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	
  

 	

 

 

2

FORM OF JOINDER AGREEMENT

          THIS
JOINDER AGREEMENT (this “Agreement”), dated as of _____________, is entered into between,
a (the “Subsidiary”), and BANK OF AMERICA, N.A., in its capacity as
Administrative Agent (the “Administrative Agent”) under that certain Credit Agreement dated as
of May 31, 2007 among Quest Diagnostics Incorporated (the “Borrower”), certain Subsidiaries of the Borrower as Guarantors, the Lenders identified
therein and Bank of America, N.A. as Administrative Agent (as the same may be amended, modified, extended or restated from time to time, the “Credit Agreement”). All
capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Credit Agreement.

          The
Subsidiary and the Administrative Agent, for the benefit of the Lenders, hereby agree as follows:

          1. The
Subsidiary hereby acknowledges, agrees and confirms that, by its execution
of this Agreement, the Subsidiary will be deemed to be a Credit Party under the
Credit Agreement and a “Guarantor” for all
purposes of the Credit Agreement and shall have all of the obligations of a Credit Party and Guarantor thereunder as
if it had executed the Credit
Agreement. The Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms,
provisions and conditions contained in the Credit Agreement, including without limitation (a) all of
the representations and warranties of the
Credit Parties set forth in Section 6 of the Credit Agreement, (b) all of the
affirmative and negative covenants set
forth in Sections 7 and 8 of the Credit Agreement and (c) all of the guaranty obligations set forth in Section 4
of the Credit Agreement. Without limiting
the generality of the foregoing terms of this paragraph 1, the Subsidiary,
subject to the limitations set forth
in Section 4.7 of the Credit Agreement, hereby guarantees, jointly and severally with the other Guarantors,
to the Administrative Agent and the Lenders, as provided in Section 4 of the
Credit Agreement, the prompt payment when due, by mandatory prepayment, acceleration, as a mandatory cash
collateralization or otherwise, of the Credit Party Obligations, including in
the case of any extension of time of
payment or renewal of any of the Credit Party Obligations, the prompt payment
and perfolinance in full when due
(whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension or renewal.

          1. The address of the Subsidiary for purposes
of Section 11.1 of the Credit Agreement is as follows:

	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 

          2. The Subsidiary hereby
waives acceptance by the Administrative Agent and the Lenders of the guaranty by the Subsidiary
under the Credit Agreement upon the execution of this Agreement by the Subsidiary.

          3.
This Agreement may be
executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of
which shall constitute one and the
same instrument.

          4.
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK.

11

          IN
WITNESS WHEREOF, the Subsidiary has caused this Agreement to be duly executed by its authorized officer, and the
Administrative Agent, for the benefit of the Lenders, has caused the same to be
accepted by its authorized officer, as of the day and year first above
written.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 [SUBSIDIARY]

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	

	
  

 	
 Acknowledged and accepted:

 
	
  

 	
  

 
	
  

 	
 BANK
 OF AMERICA, N.A, 

 as
 Administrative Agent

 
	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 

3

Exhibit 11.3(b) to 

Credit Agreement 

FORM OF 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 tennis 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, guarantees and Swing Line
Loans 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] 

 
	
  

 	
  

 
	
 3.

 	
 Borrower(s):
 Quest Diagnostics Incorporated 

 
	
  

 	
  

 
	
 4.

 	
 Administrative
 Agent: Bank of America, N.A., as the administrative agent under the Credit
 Agreement. 

 

	
  

 	
  

 	
  

 
	
 5.

 	
 Credit
 Agreement:

 	
 The Credit
 Agreement, dated as of May 31, 2007 among Quest Diagnostics Incorporated (the
 “Borrower”), certain Subsidiaries of the Borrower, as Guarantors, the Lenders
 party thereto, the Guarantors parties thereto and Bank of America, N.A., as
 Administrative Agent. 

 
	
  

 	
  

 	
  

 
	
 6.

 	
 Assigned
 Interest: 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Facility Assigned

 	
  

 	
 Aggregate

 Amount of

 Commitment/Loans

 for all Lenders*

 	
  

 	
 Amount of

 Commitment/Loans

 Assigned*

 	
  

 	
 Percentage

 Assigned of

 Commitment/Loans 

 	
  

 	
 CUSIP

 Number

 	
  

 
	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
 1

 	
  

 	
  

 	
  

 	
  

 
	
 [Tenn Loan]

 	
  

 	
 $

 	
  

 	
  

 	
 $

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [Revolving Loan]

 	
  

 	
 $

 	
  

 	
  

 	
 $

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 
	
 [7.

 	
 Trade Date:
 ____________________]2

 

Effective
Date: ___________________, 20 __ [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: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
       Title:
 

 
	
  

 	
  

 	
  

 
	
  

 	
 ASSIGNEE

 
	
  

 	
 [NAME OF
 ASSIGNEE] 

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
       Title:
 

 

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

2
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 Accepted: 

BANK OF AMERICA, N.A., as 

Administrative Agent 

	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	

 

 
	
       Title:
 

 
	
  

 	
  

 
	
 [Consented
 to:] 

 
	
  

 	
  

 
	
 [QUEST
 DIAGNOSTICS INCORPORATED] 

 
	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	

 

 
	
       Title:
 

 
	
  

 	
  

 
	
 [BANK OF
 AMERICA, N.A., as Issuing Lender and Swing Line Lender] 

 
	
  

 	
  

 
	
 By:

 	
  

 
	
  

 	

 

 
	
       Title:
 

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ASSUMPTION

	
  

 	
  

 
	
 1

 	
 Representations and Warranties.

 

                    1.1.
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 Credit Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Credit
Documents or any collateral thereunder, (iii) the financial condition of the
Borrower, any of its Subsidiaries or Affiliates or any other Person obligated
in respect of any Credit Document or (iv) the performance or observance by the
Borrower, any of its Subsidiaries or Affiliates or any other Person of any of
their respective obligations under any Credit Document. 

                    1.2.
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 Eligible 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 7.1 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 Lender that is not
a “United States person” within the meaning of Section 7701(a)(30) of the Code
(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 Credit Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the telins of the
Credit Documents are required to be performed by it as a Lender. 

                    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 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.

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