Document:

EXHIBIT 10.6

EXECUTION COPY  

SENIOR
SUBORDINATED LOAN AGREEMENT 

among

ROCKWOOD
SPECIALTIES GROUP, INC.

as Borrower, 

The
Several Lenders from Time to Time Party Hereto, 

CREDIT
SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

as Administrative Agent, 

GOLDMAN
SACHS CREDIT PARTNERS L.P.,

as Syndication Agent, 

UBS
AG, Stamford Branch,

as Documentation Agent, 

CREDIT
SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

UBS LOAN FINANCE LLC

and

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Initial Lenders 

and 

CREDIT
SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

UBS SECURITIES LLC

and

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Lead Arrangers 

Dated
as of July 30, 2004 

Table of Contents  

	 
	 	 
	 	Page

	SECTION 1.	 	Definitions.	 	2
	1.1	 	Defined Terms.	 	2
	1.2	 	Exchange Rates.	 	27
	SECTION 2.	 	Amount and Terms of Credit.	 	27
	2.1	 	Commitment.	 	27
	2.2	 	[Intentionally Omitted.]	 	28
	2.3	 	Notice of Borrowing.	 	28
	2.4	 	Disbursement of Funds.	 	28
	2.5	 	Initial Maturity Date; Final Maturity Date; Evidence of Debt.	 	29
	2.6	 	Pro Rata Borrowing.	 	30
	2.7	 	Interest.	 	30
	2.8	 	Interest Periods.	 	31
	2.9	 	Increased Costs, Illegality, etc.	 	32
	2.10	 	Compensation.	 	33
	2.11	 	Change of Lending Office.	 	33
	2.12	 	Notice of Certain Costs.	 	33
	SECTION 3.	 	Subordination.	 	33
	3.1	 	Agreement To Subordinate.	 	33
	3.2	 	Liquidation, Dissolution, Bankruptcy.	 	34
	3.3	 	Default on Senior Indebtedness.	 	34
	3.4	 	Acceleration of Payment of Loans.	 	35
	3.5	 	When Distribution Must Be Paid Over.	 	35
	3.6	 	Subrogation.	 	35
	3.7	 	Relative Rights.	 	35
	3.8	 	Subordination May Not Be Impaired by the Borrower.	 	35
	3.9	 	Rights of Agents.	 	35
	3.10	 	Distribution or Notice to Representative.	 	36
	3.11	 	Section 3 Not To Prevent Events of Default or Limit Right To Accelerate.	 	36
	3.12	 	Administrative Agent Entitled To Rely.	 	36
	3.13	 	Administrative Agent To Effectuate Subordination.	 	36
	3.14	 	Administrative Agent Not Fiduciary for Holders of Senior Indebtedness.	 	36
	3.15	 	Reliance by Holders of Senior Indebtedness on Subordination Provisions.	 	37
	3.16	 	Agents' Compensation Not Prejudiced.	 	37
	SECTION 4.	 	Fees; Voluntary Reduction of Initial Loan Commitments.	 	37
	4.1	 	Fees.	 	37
	4.2	 	Voluntary Reduction of Initial Loan Commitments.	 	37
	SECTION 5.	 	Payments.	 	37
	5.1	 	Voluntary Prepayments.	 	37
	5.2	 	Mandatory Prepayments.	 	38
	5.3	 	Method and Place of Payment.	 	38
	5.4	 	Net Payments; Tax Gross-Up.	 	39
	5.5	 	Computations of Interest and Fees.	 	41
	5.6	 	Pro Rata Treatment.	 	42
	5.7	 	Use of Proceeds.	 	42
	SECTION 6.	 	Conditions Precedent to Borrowing of Initial Loans.	 	43
	6.1	 	Credit Documents.	 	43
	6.2	 	Certain Funding Basis.	 	43
	6.3	 	[Intentionally Omitted.]	 	44
	6.4	 	Legal Opinions.	 	44
	6.5	 	No Default.	 	44
	 	 	 	 	 

 

	6.6	 	Receipt of Senior Term Loans.	 	44
	6.7	 	Equity Contribution and Acquisition; Escrow Agreements.	 	44
	6.8	 	Fees.	 	44
	6.9	 	Notice of Borrowing.	 	45
	6.10	 	Representations and Warranties.	 	45
	6.11	 	Closing Certificates.	 	45
	6.12	 	Corporate Proceedings of Each Credit Party.	 	45
	6.13	 	Corporate Documents.	 	45
	6.14	 	Patriot Act.	 	45
	SECTION 7.	 	Clean-Up Period.	 	45
	SECTION 8.	 	Representations, Warranties and Agreements.	 	46
	8.1	 	Corporate Status.	 	46
	8.2	 	Corporate Power and Authority.	 	46
	8.3	 	No Violation.	 	46
	8.4	 	Litigation.	 	47
	8.5	 	Margin Regulations.	 	47
	8.6	 	Governmental Approvals.	 	47
	8.7	 	Investment Company Act.	 	47
	8.8	 	True and Complete Disclosure.	 	47
	8.9	 	Financial Condition; Financial Statements	 	47
	8.10	 	Tax Returns and Payments.	 	48
	8.11	 	Compliance with ERISA.	 	49
	8.12	 	Subsidiaries.	 	49
	8.13	 	Patents, etc.	 	49
	8.14	 	Environmental Laws.	 	50
	8.15	 	Properties.	 	50
	SECTION 9.	 	Affirmative Covenants.	 	50
	9.1	 	Information Covenants.	 	50
	9.2	 	Books, Records and Inspections.	 	52
	9.3	 	Maintenance of Insurance.	 	52
	9.4	 	Payment of Taxes.	 	52
	9.5	 	Consolidated Corporate Franchises.	 	52
	9.6	 	Compliance with Statutes, Obligations, etc.	 	53
	9.7	 	ERISA.	 	53
	9.8	 	Good Repair.	 	53
	9.9	 	End of Fiscal Years; Fiscal Quarters.	 	53
	9.10	 	Additional Guarantors.	 	54
	9.11	 	Use of Proceeds.	 	54
	9.12	 	Changes in Business.	 	54
	9.13	 	[Intentionally Omitted].	 	54
	9.14	 	[Intentionally Omitted].	 	54
	9.15	 	Change of Control.	 	55
	9.16	 	Acquisition Agreement.	 	55
	SECTION 10.	 	Negative Covenants.	 	55
	10.1	 	Limitation on Asset Sales.	 	55
	10.2	 	Limitation on Restricted Payments.	 	57
	10.3	 	Limitations on Incurrence of Indebtedness and Issuance of Disqualified Stock.	 	62
	10.4	 	Liens	 	66
	 	 	 	 	 

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	10.5	 	Borrower and Subsidiary Guarantors May Consolidate, Etc. Only on Certain Terms.	 	66
	10.6	 	Transactions with Affiliates.	 	68
	10.7	 	Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.	 	69
	10.8	 	Limitation on Other Senior Subordinated Indebtedness.	 	71
	10.9	 	Limitation on Guarantees of Indebtedness by Restricted Subsidiaries.	 	71
	SECTION 11.	 	Events of Default.	 	72
	SECTION 12.	 	The Agents.	 	74
	12.1	 	Appointment.	 	74
	12.2	 	Delegation of Duties.	 	75
	12.3	 	Exculpatory Provisions.	 	75
	12.4	 	Reliance by Administrative Agent.	 	75
	12.5	 	Notice of Default.	 	76
	12.6	 	Non-Reliance on Agents and Other Lenders.	 	76
	12.7	 	Indemnification.	 	76
	12.8	 	Agents in their Individual Capacities.	 	77
	12.9	 	Successor Administrative Agent.	 	77
	12.10	 	Withholding Tax.	 	77
	SECTION 13.	 	Miscellaneous.	 	77
	13.1	 	Amendments and Waivers.	 	77
	13.2	 	Notices.	 	79
	13.3	 	No Waiver; Cumulative Remedies.	 	80
	13.4	 	Survival of Representations and Warranties.	 	80
	13.5	 	Payment of Expenses and Taxes.	 	80
	13.6	 	Successors and Assigns; Participations and Assignments.	 	81
	13.7	 	Replacements of Lenders under Certain Circumstances.	 	83
	13.8	 	Adjustments; Setoff.	 	83
	13.9	 	Counterparts.	 	84
	13.10	 	Severability and Integration.	 	84
	13.11	 	Governing Law.	 	84
	13.12	 	Submission to Jurisdiction; Waivers.	 	84
	13.13	 	Acknowledgments.	 	85
	13.14	 	Waivers of Jury Trial.	 	85
	13.15	 	Confidentiality.	 	85
	13.16	 	Judgment Currency.	 	85

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	SCHEDULES	 	 
	Schedule 2.1(a)	 	Commitments of Lenders
	Schedule 8.12	 	Subsidiaries
	Schedule 13.2	 	Addresses for Notices
	EXHIBITS	 	 
	Exhibit A	 	Form of Note
	Exhibit B	 	Form of Assignment and Acceptance
	Exhibit C	 	Form of Confidentiality Agreement
	Exhibit D-1	 	Form of Legal Opinion of General Counsel to the Borrower
	Exhibit D-2	 	Form of Legal Opinion of Simpson Thacher & Bartlett LLP
	Exhibit E	 	Form of Guarantee Agreement
	Exhibit F	 	Form of Closing Certificate

iv

   
        SENIOR SUBORDINATED LOAN AGREEMENT dated as of July 30, 2004, among ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation (the
"Borrower"), CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, UBS LOAN FINANCE LLC and GOLDMAN SACHS CREDIT PARTNERS L.P., as
initial Lenders, the other Lenders (as defined in Section 1), CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, UBS SECURITIES LLC and GOLDMAN SACHS CREDIT PARTNERS L.P., as
lead arrangers (in such capacity, the "Lead Arrangers"), CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as administrative agent
(in such capacity, the "Administrative Agent"), GOLDMAN SACHS CREDIT PARTNERS L.P., as syndication agent (in such capacity, the
"Syndication Agent"), and UBS AG, Stamford Branch, as documentation agent (in such capacity, the "Documentation
Agent"). 

RECITALS:

        Pursuant
to an acquisition agreement notarized on April 19, 2004 (as amended, supplemented or otherwise modified from time to time, the "Acquisition
Agreement"), the Borrower agreed to acquire (the "Acquisition") the outstanding capital stock of certain members of the Dynamit
Nobel Group (the "Target Business") from mg technologies ag and certain of its subsidiaries that are parties to the Acquisition Agreement (the
"Sellers"). In connection with the financing of the Acquisition, (a) an affiliate of each of Kohlberg Kravis Roberts & Co. L.P.
("KKR") and DLJ Merchant Banking Partners ("DLJ" and, together with KKR, the  "Sponsors") will contribute
approximately $488.0 million (assuming an exchange rate of $1.20 to €1.00 and subject to adjustment
based on the Acquisition Agreement such that the amount of such contribution, when coupled with the amounts described in Section 6.6, the Total Commitments and the amount of any revolving
credit loans funded pursuant to the Senior Secured Credit Agreement used to finance the Acquisition (which shall be accompanied by a proportionate increase in the amount of such equity contribution),
shall be sufficient to pay the purchase price under the Acquisition Agreement), in cash made on the Funding Date to Parent in the form of common equity (the "Equity
Contribution"), (b) the Borrower and Rockwood Specialities Limited will borrow an aggregate principal amount of up to $985,000,000 and €389,741,010.81
under senior secured facilities provided by Credit Suisse First Boston, acting through its Cayman Islands Branch, UBS Loan Finance LLC, Goldman Sachs Credit Partners L.P. and a syndicate of lenders
pursuant to a credit agreement dated as of the date hereof (the "Senior Secured Credit Agreement"), among the Borrower, Rockwood Specialities Limited,
Rockwood Specialties International, Inc., the lenders party thereto, Credit Suisse First Boston, acting through its Cayman Islands Branch, as administrative agent thereunder and UBS Securities
LLC and Goldman Sachs Credit Partners L.P., as co-syndication agents thereunder and (c) certain fees and expenses incurred in connection with the transactions described in this
paragraph will be paid. Concurrently with the borrowing of the Senior Term Loans (as herein defined) under the Senior Secured Credit Agreement, the Borrower will borrow the Initial Loans. The proceeds
of the Initial Loans will be used solely to pay a portion of the purchase price under the Acquisition Agreement, to refinance certain existing indebtedness of the Borrower and the Target Business and
to pay related fees and expenses. The transactions described above are referred to collectively as the "Transactions". 

1

 

        The
parties hereto hereby agree as follows: 

        SECTION
1    Definitions.    

        As
used herein, the following terms shall have the meanings specified in this Section 1 unless the context otherwise requires (it being understood that defined terms in this
Agreement shall include in the singular number the plural and in the plural the singular): 

        1.1    Defined Terms.    

        "Acquired Indebtedness" means, with respect to any specified Person, (i) Indebtedness of any other Person existing at the time such
other Person is merged with or into or became a Restricted Subsidiary of such specified Person, including, without limitation, Indebtedness incurred in connection with, or in contemplation of, such
other Person merging with or into or becoming a Restricted Subsidiary of such specified Person, and (ii) Indebtedness secured by a Lien encumbering any asset acquired by such specified Person. 

        "Acquisition" is defined in the recitals. 

        "Acquisition Agreement" is defined in the recitals. 

        "Acquisition Documents" means the Acquisition Agreement and all other agreements executed from time to time pursuant to the Acquisition
Agreement between the parties thereto. 

        "Acquisition Escrow Agreement" means the Acquisition Escrow Agreement dated as of the Funding Date among the Sellers, the Borrower, Knight
Erste Beteiligungs GmbH and The Bank of New York, as Financing Escrow Agent. 

        "Adjusted EURIBOR" means, with respect to the Borrowing for any Interest Period, an interest rate per annum equal to the product of
(a) EURIBOR in effect for such Interest Period and (b) Statutory Reserves. 

        "Adjusted LIBOR" means, with respect to the Borrowing for any Interest Period, an interest rate per annum equal to the product of
(a) LIBOR in effect for such Interest Period and (b) Statutory Reserves. 

        "Administrative Agent" means CSFB, together with its affiliates, as the administrative agent for the Lenders under this Agreement and the
other Credit Documents. With respect to Foreign Currency Loans, the Administrative Agent may be an Affiliate of CSFB for purposes of administering such Loans, and all references herein to the term
"Administrative Agent" shall be deemed to refer to the Administrative Agent in respect of the applicable Loan or to all Administrative Agents, as the context requires. 

        "Administrative Agent's Office" means the office of the Administrative Agent located at Eleven Madison Avenue, New York, NY 10010, or such
other office as the Administrative Agent may hereafter designate in writing as such to the other parties hereto. 

        "Affiliate" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, "control" (including, with correlative meanings, the terms
"controlling," "controlled by" and "under common control
with"), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of
such Person, whether through the ownership of voting securities, by agreement or otherwise. 

        "Affiliate Transaction" is defined in Section 10.6(a). 

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        "Agents" means the Administrative Agent and the Lead Arrangers. 

        "Agreement" means this senior subordinated loan agreement. 

        "Applicable Margin" means (i) in the case of Dollar Loans, 800 basis points and (ii) in the case of Foreign Currency Loans,
700 basis points, in each case, during the six-month period commencing on the Funding Date and increasing by an additional 75 basis points at the end of such six-month period
and at the end of each subsequent six-month period thereafter. 

        "Applicable Premium" means, with respect to any prepayment pursuant to Section 5.1, 5.2(a)(1) or 5.2(a)(3), the applicable premium
(expressed as a percentage of the principal amount being prepaid) set forth below based on the date such prepayment is made. 

	Months after Funding Date
	 	Percentage of Par

	0-6	 	0%
	7-12	 	1.00%
	13 to Initial Maturity Date	 	2.00%
	After Initial Maturity Date to 30	 	1.00%
	31-42	 	2.00%
	Thereafter	 	3.00%

        "Asset Sale" means (i) the sale, conveyance, transfer or other disposition (whether in a single transaction or a series of related
transactions) of property or assets (including by way of a sale and leaseback) of the Borrower or any Restricted Subsidiary (each referred to in this definition as a
"disposition") or (ii) the issuance or sale of Equity Interests of any Restricted Subsidiary (whether in a single transaction or a series of
related transactions) in each case other than: 

        (a)   a
disposition of Cash Equivalents or Investment Grade Securities or obsolete or worn out equipment in the ordinary course of business or inventory or goods held for sale
in the ordinary course of business; 

        (b)   the
disposition of all or substantially all of the assets of the Borrower in a manner permitted pursuant to Section 10.5 or any disposition that constitutes a
Change of Control; 

        (c)   the
making of any Restricted Payment or Permitted Investment that is permitted to be made, and is made, under Section 10.2; 

        (d)   any
disposition of assets or issuance or sale of Equity Interests of any Restricted Subsidiary in any transaction or a series of transactions with an aggregate fair
market value of less than $7.5 million; 

        (e)   any
disposition of property or assets or issuance of securities by a Restricted Subsidiary to the Borrower or by the Borrower or a Restricted Subsidiary to a Restricted
Subsidiary; 

        (f)    to
the extent allowable under Section 1031 of the Code, any exchange of like property (excluding any boot thereon) for use in a Similar Business; 

        (g)   the
lease, assignment or sub-lease of any real or personal property in the ordinary course of business; 

        (h)   any
sale of Equity Interests in, or Indebtedness or other securities of, an Unrestricted Subsidiary (with the exception of Investments in Unrestricted Subsidiaries
acquired pursuant to clause (x) of the definition of "Permitted Investments"); 

        (i)    foreclosures
on assets; 

3

 

        (j)    sales
of accounts receivable, or participations therein, in connection with any Receivables Facility; and 

        (k)   any
financing transaction with respect to property built or acquired by the Borrower or any Restricted Subsidiary after July 23, 2003, including, without
limitation, sale leasebacks and asset securitizations permitted by this Agreement. 

        "Asset Sale Offer" is defined in Section 10.1(c). 

        "Asset Sale Prepayment Event" means the consummation of any Asset Sale. 

        "Assignee" is defined in Section 13.6(c). 

        "Assignor" is defined in Section 13.6(c). 

        "Assignment and Acceptance" is defined in Section 13.6(c). 

        "Board" means the Board of Governors of the Federal Reserve System of the United States (or any successor). 

        "Board of Directors" means, with respect to any Person, the board of directors of such Person or any committee thereof duly authorized to
act on behalf of such board. 

        "Board Resolution" means, with respect to any Person, a copy of a resolution certified by the Secretary or an Assistant Secretary of such
Person to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and, if required by this Agreement, delivered to the Administrative
Agent. 

        "Borrower" is defined in the recitals. 

        "Borrowing" means the incurrence of an Initial Loan. 

        "Bridge Obligations" means the Obligations of the Borrower and each other Credit Party under or in connection with this Agreement and the
other Credit Documents. 

        "Business Day" means (a) for all purposes other than as covered by clause (b) below, any day excluding Saturday, Sunday and
any day that shall be in The City of New York or London a legal holiday or a day on which banking institutions are authorized by law or other governmental actions to close and (b) with respect
to all notices and determinations in connection with, and payments of principal and interest on, Foreign Currency Loans, any day that is a Business Day described in clause (a) and which is also
a day on which the TARGET payments system is open for the settlement of payment in Euro, provided that when used in connection with any Initial Loan
(including with respect to all notices and determinations in connection therewith and any payments of principal, interest or other amounts thereon), the term "Business Day" shall also exclude any day
on which banks are not open for dealing in the London interbank market. 

        "Calculation Date" means (a) such dates as the Administrative Agent may select at its discretion from time to time (but in any
event no more frequently than once per month) and (b) if a Default or an Event of Default shall have occurred and be continuing, such additional dates as the Administrative Agent or the
Required Lenders shall specify. 

        "Capital Stock" means (i) in the case of a corporation, corporate stock, (ii) in the case of an association or business
entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock, (iii) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited) and (iv) any other interest or 

4

 

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. 

        "Capitalized Lease Obligation" means, at the time any determination thereof is to be made, the amount of the liability in respect of a
capital lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) in accordance with GAAP. 

        "Cash Equivalents" means (i) United States Dollars, (ii) pounds sterling, (iii) (A) Euro or any national
currency of a participating member state in the European Union or, (B) in the case of any Foreign Subsidiary that is a Restricted Subsidiary, such local currencies held by it from time to time
in the ordinary course of business, (iv) securities issued or directly and fully and unconditionally guaranteed or insured by the United States government or any agency or instrumentality
thereof the securities of which are unconditionally guaranteed as a full faith and credit obligation of such government, with maturities of 24 months or less from the date of acquisition,
(v) certificates of deposit, time deposits and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers' acceptances with maturities not exceeding one
year and overnight bank deposits, in each case with any commercial bank having capital and surplus in excess of $500.0 million, (vi) repurchase obligations for underlying securities of
the types described in clauses (iv) and (v) entered into with any financial institution meeting the qualifications specified in clause (v) above, (vii) commercial paper
rated at least P-1 by Moody's or at least A-1 by S&P and in each case maturing within 12 months after the date of creation thereof, (viii) investment funds
investing 95% of their assets in securities of the types described in clauses (i)-(vii) above, (ix) readily marketable direct obligations issued by any state of the United States of
America or any political subdivision thereof having one of the two highest rating categories obtainable from either Moody's or S&P with maturities of 24 months or less from the date of
acquisition and (x) and (ii) Indebtedness or Preferred Stock issued by Persons with a rating of "A" or higher from S&P or
"A2" or higher from Moody's with maturities of 12 months or less from the date of acquisition. Notwithstanding the foregoing, Cash Equivalents
shall include amounts denominated in currencies other than those set forth in clauses (i) through (iii) above, provided that such amounts
are converted into any currency listed in clauses (i) through (iii) above as promptly as practicable and in any event within ten Business Days following the receipt of such amounts. 

        "Change of Control" means the occurrence of any of the following: 

        (i)    the
sale, lease or transfer, in one or a series of related transactions, of all or substantially all of the assets of the Borrower and its Subsidiaries, taken as a
whole, to any Person other than a Permitted Holder; or 

        (ii)   the
Borrower becomes aware of (by way of a report or any other filing pursuant to Section 13(d) of the Exchange Act, proxy, vote, written notice or otherwise)
the acquisition by any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision), including any group acting for the
purpose of acquiring, holding or disposing of securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act), other than the Permitted Holders, in a single transaction
or in a related series of transactions, by way of merger, consolidation or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the
Exchange Act, or any successor provision) of 50% or more of the total voting power of the Voting Stock of the Borrower or any of its direct or indirect parent corporations. 

        "Closing Date" means July 31, 2004. 

5

 

        "Code" means the United States Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings
issued thereunder. Section references to the Code are to the Code, as in effect at the date of this Agreement, and any subsequent provisions of the Code, amendatory thereof, supplemental thereto or
substituted therefor. 

        "Commitments" means as to any Lender, such Lender's Dollar Commitment and Foreign Currency Commitment. 

        "Common Stock" means, with respect to any Person, any and all shares, interests, participations and other equivalents (however designated,
whether voting or non-voting) of such Person's common stock, whether now outstanding or issued after the date of this Agreement, and includes, without limitation, all series and classes of
such common stock. 

        "Confidential Information" is defined in Section 13.15. 

        "Confidential Information Memorandum" means the Confidential Information Memorandum of the Borrower dated June 2004, delivered to
the Lenders in connection with the Senior Secured Credit Facilities. 

        "Consolidated Depreciation and Amortization Expense" means with respect to any Person for any period, the total amount of depreciation and
amortization expense, including the amortization of deferred financing fees, and other non-cash charges (excluding any non-cash item that represents an accrual or reserve for a
cash expenditure for a future period) of such Person and its Restricted Subsidiaries for such period on a consolidated basis and otherwise determined in accordance with GAAP. 

        "Consolidated Interest Expense" means, with respect to any Person for any period, the sum, without duplication, of:
(a) consolidated interest expense of such Person and its Restricted Subsidiaries for such period, to the extent such expense was deducted in computing Consolidated Net Income (including
amortization of original issue discount, non-cash interest payments (but excluding any non-cash interest expense attributable to the movement in the mark to market valuation of
Hedging Obligation pursuant to Financial Accounting Standards Board Statement
No. 133—"Accounting for Derivative Instruments and Hedging Activities"), the interest component of Capitalized Lease Obligations and net payments, if any, pursuant to Hedging
Obligations, and excluding amortization of deferred financing fees), and (b) consolidated capitalized interest of such Person and its Restricted Subsidiaries for such period, whether paid or
accrued. 

        "Consolidated Net Income" means, with respect to any Person for any period, the aggregate of the Net Income, of such Person and its
Restricted Subsidiaries for such period, on a consolidated basis, and otherwise determined in accordance with GAAP; provided, however, that
(i) any net after-tax extraordinary gains or losses (less all fees and expenses relating thereto) shall be excluded, (ii) the
Net Income for such period shall not include the cumulative effect of a change in accounting principles during such period, (iii) any net after-tax income (loss) from discontinued
operations and any net after-tax gains (or losses) on disposal of discontinued operations shall be excluded, (iv) any net after-tax gains (or losses)
(less all fees and expenses relating thereto) attributable to asset dispositions other than in the ordinary course of business (as determined in good
faith by the Board of Directors of such Person) shall be excluded, (v) the Net Income for such period of any Person that is not a Subsidiary, or is an Unrestricted Subsidiary, or that is
accounted for by the equity method of accounting, shall be excluded; provided that, to the extent not already included, Consolidated Net Income of such
Person shall be increased by the amount of dividends or distributions or other payments that are actually paid in cash (or to the extent converted into cash) to the referent Person or a Restricted
Subsidiary thereof in respect of such period, (vi) the Net Income for such period of any Restricted Subsidiary (other than any Guarantor) shall be excluded if the declaration or payment of 

6

 

dividends
or similar distributions by that Restricted Subsidiary of its Net Income is not at the date of determination wholly permitted without any prior governmental approval (which has not been
obtained) or, directly or indirectly, by the operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule, or governmental regulation applicable to that
Restricted Subsidiary or its stockholders, unless such restriction with respect to the payment of dividends or in similar distributions has been legally waived;  provided, that, Consolidated Net Income
of such Person shall be increased by the amount of dividends or other distributions or other payments actually
paid in cash (or to the extent converted into cash) to such Person or a Restricted Subsidiary thereof in respect of such period to the extent not already included therein, (vii) any increase in
amortization or depreciation resulting from purchase accounting in relation to any acquisition that is consummated after July 23, 2003, net of taxes, shall be excluded, (viii) any net
after-tax income (loss) from the early extinguishment of Indebtedness shall be excluded, and (ix) any goodwill impairment charge pursuant to Financial Accounting Standards Board
Statement No. 142—"Goodwill and Other Intangible Assets" shall be excluded. 

        Notwithstanding
the foregoing, for the purpose of Section 10.2 only (other than clause (a)(C)(4) thereof), there shall be excluded from Consolidated Net Income any income
arising from any sale or other disposition of Restricted Investments made by the Borrower and the Restricted Subsidiaries, any repurchases and redemptions of Restricted Investments from the Borrower
and the Restricted Subsidiaries, any repayments of loans and advances which constitute Restricted Investments by the Borrower or any Restricted Subsidiary, any sale of the stock of an Unrestricted
Subsidiary or any distribution or dividend from an Unrestricted Subsidiary, in each case only to the extent such amounts
increase the amount of Restricted Payments permitted under such covenant pursuant to clause (a)(C)(4) thereof. 

        "Contingent Obligations" means, with respect to any Person, any obligation of such Person guaranteeing any leases, dividends or other
obligations that do not constitute Indebtedness ("primary obligations") of any other Person (the "primary
obligor") in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not contingent, (i) to purchase any
such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (A) for the purchase or payment of any such primary obligation
or (B) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, or (iii) to purchase property,
securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation against loss in
respect thereof. 

        "Credit Documents" means this Agreement, the Guarantee Agreement together with any Guarantee Supplement, any promissory notes issued by
the Borrower hereunder and the Financing Escrow Agreement. 

        "Credit Facilities" means, with respect to the Borrower, one or more debt facilities, including, without limitation, the Senior Secured
Credit Facilities, or commercial paper facilities with banks or other institutional lenders or investors or indentures providing for revolving credit loans, term loans, receivables financing,
including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against receivables, letters of credit or other long-term
indebtedness, in each case, as amended, restated, modified, renewed, refunded, replaced or refinanced, including increasing the amount borrowed thereunder, in whole or in part from time to time. 

        "Credit Party" means the Borrower and each Guarantor. 

        "CSFB" means Credit Suisse First Boston, acting through its Cayman Islands Branch, and any successor thereto. 

7

 

        "Debt Incurrence Prepayment Event" means any issuance or incurrence by the Borrower or any Subsidiary of the Borrower (other than any
Unrestricted Subsidiary) of any debt securities after the Funding Date pursuant to Section 10.3(a) or, prior to the Initial Maturity Date, Section 10.3(b)(xiii) (except to the
extent that such issuance or incurrence (1) is used to finance an acquisition (including refinancing target group debt) or to refinance Indebtedness incurred as a result
of an acquisition or (2) is issued or incurred pursuant to clause (B) of Section 10.3(b)(xiii) to the extent of new capital contributions received after the Funding Date). 

        "Default" means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default. 

        "Designated Non-cash Consideration" means the fair market value of non-cash consideration received by the Borrower
or a Restricted Subsidiary in connection with an Asset Sale that is so designated as Designated Non-cash Consideration pursuant to an Officer's Certificate, setting forth the basis of such
valuation, executed by an executive vice president and the principal financial officer of the Borrower, less the amount of cash or Cash Equivalents
received in connection with a subsequent sale of such Designated Non-cash Consideration. 

        "Designated Non-Guarantor Joint Venture" means any non-Wholly Owned Restricted Subsidiary engaged in a Similar
Business that is designated as a Designated Non-Guarantor Joint Venture pursuant to an Officers' Certificate. 

        "Designated Preferred Stock" means Preferred Stock of the Borrower or any direct or indirect parent corporation thereof (in each case
other than Disqualified Stock) that is issued for cash (other than to a Restricted Subsidiary) and is so designated as Designated Preferred Stock, pursuant to an Officers' Certificate executed by an
executive vice president and the principal financial officer of the Borrower or the applicable direct or indirect parent corporation thereof, as the case may be, on the issuance date thereof, the cash
proceeds of which are excluded from the calculation set forth in Section 10.2(a)(C). 

        "Designated Senior Indebtedness" means (i) Senior Indebtedness under the Senior Secured Credit Facilities and (ii) any other
Senior Indebtedness permitted under this Agreement, the principal amount of which is $25.0 million or more and that has been specifically designated in the instrument evidencing such Senior
Indebtedness by the Borrower as Designated Senior Indebtedness. 

        "Disqualified Stock" means, with respect to any Person, any Capital Stock of such Person which, by its terms, or by the terms of any
security into which it is convertible or for which it is putable or exchangeable, or upon the happening of any event, matures or is mandatorily redeemable, other than as a result of a change of
control or asset sale, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, other than as a result of a change of control or asset sale, in whole
or in part, in each case prior to the date 91 days after the earlier of the Final Maturity Date of the Loans or the date the Loans are no longer outstanding;  provided, however, that if such Capital Stock is issued to any plan for the benefit of employees of the
Borrower or its Subsidiaries or by any such plan to such employees, such Capital Stock shall not constitute Disqualified Stock solely because it may be required to be repurchased by the Borrower or
its Subsidiaries in order to satisfy applicable statutory or regulatory obligations. 

        "Documentation Agent" is defined in the recitals. 

        "Dollar", "dollar" and "$" means lawful
currency of the United States. 

        "Dollar Commitment" means as to any Lender, its obligation to make a Dollar Loan to the Borrower pursuant to Section 2.1(a) and to
extend into Extended Loans as provided in Section 2.1(b) in an aggregate amount not to exceed the Dollar amount set forth under such Lender's name in 

8

 

Schedule 2.1(a)
opposite the caption "Dollar Commitment Amount" or in the Assignment and Acceptance pursuant to which a Lender acquires its
Commitment, as the same may be adjusted pursuant to Section 13.6. The aggregate Dollar Commitment on the Funding Date is $350.0 million. 

        "Dollar Equivalent" means, on any date of determination, (a) with respect to any amount denominated in Dollars, such amount, and
(b) with respect to any amount denominated in Euro, the equivalent in Dollars of such amount, determined by the Administrative Agent pursuant to Section 1.2, using the applicable
Exchange Rate with respect to the Euro at the time in effect under the provisions of such Section 1.2. 

        "Dollar Loan" is defined in Section 2.1(a). 

        "Domestic Subsidiary" means, with respect to any Person, any Restricted Subsidiary of such Person other than a Foreign Subsidiary. 

        "EBITDA" means, with respect to any Person for any period, the Consolidated Net Income of such Person for such period  plus (a) provision for taxes based on income
or profits of such Person for such period deducted in computing Consolidated Net Income,  plus (b) Consolidated Interest Expense of such Person for such period to the extent the same was deducted in
calculating such Consolidated Net
Income, plus (c) Consolidated Depreciation and Amortization Expense of such Person for such period to the extent such depreciation and
amortization were deducted in computing Consolidated Net Income, plus (d) any expenses or charges related to any Equity Offering, Permitted
Investment, acquisition, disposition, recapitalization or Indebtedness permitted to be made or incurred under this Agreement (whether or not successful) (including such fees, expenses or charges
related to the Loans (including the refinancing thereof) and the Credit Facilities) and deducted in computing Consolidated Net Income, plus
(e) the amount of any restructuring charge deducted in such period in computing Consolidated Net Income (including any one-time costs incurred in connection with acquisitions after
July 23, 2003), plus (f) without duplication, any other non-cash charges reducing Consolidated Net Income for such period
(excluding any such charge that represents an
accrual or reserve for a cash expenditure for a future period), plus (g) the amount of any minority interest expense deducted in calculating
Consolidated Net Income (less the amount of any cash dividends paid to the holders of such minority interests)  plus (h) Systems/Organizational
Establishment Expenses and, prior to December 31, 2001, unusual patent litigation expenses,  less (i) non-cash items increasing Consolidated Net Income of such Person for such period, excluding
any items which represent the
reversal of any accrual of, or cash reserve for, anticipated cash charges in any prior period. 

        "EMU" means economic and monetary union as contemplated in the Treaty on European Union. 

9

   
        "EMU Legislation" means the legislative measures of the European Union for the introduction of, changeover to or operation of the Euro in
one or more member states. 

        "Environmental Claims" means any and all administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens,
notices of noncompliance or violation, investigations (other than internal reports prepared by the Borrower or any of its Subsidiaries (a) in the ordinary course of such Person's business or
(b) as required in connection with a financing transaction or an acquisition or disposition of real estate) or proceedings relating in any way to any Environmental Law or any permit issued, or
any approval given, under any such Environmental Law (hereinafter, "Claims"), including, without limitation, (i) any and all Claims by
governmental or regulatory authorities for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any applicable Environmental Law and (ii) any and all Claims
by any third party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of
injury to health, safety or the environment. 

        "Environmental Law" means any applicable United States Federal, state, foreign or local statute, law, rule, regulation, ordinance, code
and rule of common law now or hereafter in effect and in each case as amended, and any binding judicial or administrative interpretation thereof, including any binding judicial or administrative
order, consent decree or judgment, relating to the environment, human health or safety or Hazardous Materials. 

        "Equity Contribution" is defined in the recitals. 

        "Equity Interests" means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security
that is convertible into, or exchangeable for, Capital Stock). 

        "Equity Issuance Prepayment Event" means any Equity Offering (except to the extent that such Equity Offering is to one or both of the
Sponsors or any of their respective affiliates or is used to finance an acquisition (including refinancing target group debt) or to refinance Indebtedness incurred as a result of an acquisition). 

        "Equity Offering" means any public or private sale of Common Stock or Preferred Stock of the Borrower or any of its direct or indirect
parent corporations (excluding Disqualified Stock), other than (x) public offerings with respect to the Borrower's or any direct or indirect parent corporation's
Common Stock registered on Form S-8 and (y) any such public or private sale that constitutes an Excluded Contribution. 

        "Equity Proceeds" means, with respect to any Equity Issuance Prepayment Event, the Net Proceeds from the issuance of equity interests
after, at the option of the Borrower, any prepayment of (a) the Senior Discount Notes, (b) the PIK loans and notes of PIK Holdco in respect of the financing consummated in
November 2000 and/or (c) the preferred equity of Parent issued in July 2003, in each case, including any accrued interest or dividends and prepayment premiums on, and any accreted
amount in respect thereof, and any instruments refinancing any of such items (to the extent any such instruments do not increase the accreted or accrued principal amount thereof or the rate of
accretion or accrual of principal thereon). 

        "ERISA" means the United States Employee Retirement Income Security Act of 1974, as amended from time to time. Section references to ERISA
are to ERISA as in effect at the date of this Agreement and any subsequent provisions of ERISA amendatory thereof, supplemental thereto or substituted therefor. 

        "ERISA Affiliate" means each person (as defined in Section 3(9) of ERISA) that together with the Borrower or a Subsidiary of the
Borrower would be deemed to be a "single employer" within the 

10

 

meaning
of Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code. 

        "EURIBOR" means, in the case of any Foreign Currency Loan, the rate of interest which shall be determined by the Administrative Agent at
approximately 11:00 a.m., London time, on the Quotation Day for such Interest Period by reference to the British Bankers' Association Interest Settlement Rates for deposits in the currency of
such Borrowing (as set forth by the Bloomberg Information Service or any successor thereto or any other service selected by the Administrative Agent which has been nominated by the British Bankers'
Association as an authorized information vendor for the purpose of displaying such rates) for a period equal to such Interest Period; provided that, to
the extent that an interest rate is not ascertainable pursuant to the foregoing provisions of this definition, "EURIBOR" shall be the interest rate per
annum determined by the Administrative Agent to be the average of the rates per annum at which deposits in Euro in an amount comparable to the relevant Foreign Currency Loan are offered for such
relevant Interest Period to major banks in the London interbank market in London, England by the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two Business
Days prior to the beginning of such Interest Period. 

        "Euro" or "€" means the single currency of the European Union as
constituted by the Treaty on European Union and as referred to in the EMU Legislation. 

        "Event of Default" is defined in Section 11. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 

        "Exchange Rate" means on any day, with respect to the Euro, the rate at which the Euro may be exchanged into Dollars, as set forth at
approximately 11:00 a.m. (London time) on such day on the Bloomberg Key Cross—Currency Rates Page for the Euro. In the event that such rate does not appear on any Bloomberg Key
Cross—Reuters World Currency Rates Page, the Exchange Rate shall be determined by reference to such other publicly available service for displaying exchange rates as may be agreed upon by
the Administrative Agent and the Borrower, or, in the absence of such agreement, such Exchange Rate shall instead be the arithmetic average of the spot rates of exchange of the Administrative Agent in
the market where its foreign currency exchange operations in respect of the Euro are then being conducted, at or about 10:00 a.m. (Local Time) on such date for the purchase of Dollars for
delivery two Business Days later, provided that if at the time of any such determination, for any reason, no such spot rate is being quoted, the
Administrative Agent, after consultation with the Borrower, may use any reasonable method it deems appropriate to determine such rate, and such determination shall be conclusive absent manifest error. 

        "Excluded Contribution" means net cash proceeds, marketable securities or Qualified Proceeds, in each case received by the Borrower from: 

        (a)   contributions
to its common equity capital; and 

        (b)   the
sale (other than to a Subsidiary of the Borrower or to any management equity plan or stock option plan or any other management or employee benefit plan or agreement
of the Borrower) of Capital Stock (other than Disqualified Stock and Designated Preferred Stock) of the Borrower 

in
each case designated as Excluded Contributions pursuant to an Officers' Certificate executed by an executive vice president and the principal financial officer of the Borrower on the date such
capital contributions are made or the date such Equity Interests are sold, as the case may be which are excluded from the calculation set forth in Section 10.2(a)(C). 

11

 

        "Existing Indebtedness" means Indebtedness of the Borrower or the Restricted Subsidiaries outstanding on the Closing Date  plus interest accruing thereon. 

        "Extended Loans" is defined in Section 2.1(b). 

        "Fee Letter" means the Senior Subordinated Credit Facility Fee Letter, dated as of April 19, 2004, among the Borrower, CSFB, UBS
Loan Finance LLC, UBS Securities LLC and Goldman Sachs Credit Partners L.P. 

        "Fees" means all amounts payable pursuant to, or referred to in, Section 4.1. 

        "Final Maturity Date" means the tenth anniversary of the Funding Date; provided,  however, that the Final Maturity Date
will automatically become the Refinancing Date in the event that on or prior to the Refinancing Date either
(a) the 2011 Notes shall not have been extended, renewed, replaced or otherwise refinanced in full in accordance with the terms hereof by Indebtedness which shall have a final maturity no
earlier than (and which shall not require any mandatory payments of principal in excess of $75,000,000 (except pursuant to asset sale or change of control provisions that are no more materially
adverse to the interests of the Lenders than those relating to the 2011 Notes as in effect on the date hereof) any earlier than) the date that is 91 days following the date that is ten years
after the Funding Date or (b) legal defeasance or similar arrangements reasonably satisfactory to the Administrative Agent shall not have been made for the repayment or redemption of the 2011
Notes in full. 

        "Financing Escrow Agent" shall mean The Bank of New York. 

        "Financing Escrow Agreement" means the Financing Escrow Agreement dated as of the Funding Date among the Borrower, Rockwood Specialties
Limited, Rockwood Specialties Consolidated, Inc., Knight Erste Beteiligungs GmbH, the Administrative Agent, the administrative agent under the Senior Secured Credit Agreement, Allianz
Lebensversicherungs-AG, Stuttgart, Allianz Capital Partners GmbH, The Bank of New York, as Financing Escrow Agent and JPMorgan Chase Bank, as Collateral Escrow Agent. 

        "Fixed Charge Coverage Ratio" means, with respect to any Person for any period consisting of such Person and its Restricted Subsidiaries'
most recently ended four full fiscal quarters for which internal financial statements are available, the ratio of EBITDA of such Person for such period to the Fixed Charges of such Person for such
period. In the event that such Person or any Restricted Subsidiary thereof incurs, assumes, guarantees or redeems any Indebtedness or issues or redeems Disqualified Stock or Preferred Stock subsequent
to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated but prior to the event for which the calculation of the Fixed Charge Coverage Ratio is made (the
"Calculation Date"), then the Fixed Charge Coverage Ratio shall be
calculated giving pro forma effect to such incurrence, assumption, guarantee or redemption of Indebtedness, or such issuance or redemption of Disqualified Stock or Preferred Stock, as if the same had
occurred at the beginning of the applicable four quarter period. 

        For
purposes of making the computation referred to above, Investments, acquisitions, dispositions, mergers, consolidations and disposed operations (as determined in accordance with GAAP)
that have been made by such Person or any Restricted Subsidiary thereof during the four quarter reference period or subsequent to such reference period and on or prior to or simultaneously with the
Calculation Date shall be calculated on a pro forma basis assuming that all such Investments, acquisitions, dispositions, mergers, consolidations and disposed operations (and the change in any
associated fixed charge obligations and the change in EBITDA resulting therefrom) had occurred on the first day of the four quarter reference period. If since the beginning of such period any other
Person (that subsequently became a Restricted Subsidiary or was merged with or into such Person or any Restricted Subsidiary thereof since the beginning of such period) shall have made any Investment, 

12

 

acquisition,
disposition, merger, consolidation or disposed operation that would have required adjustment pursuant to this definition, then the Fixed Charge Coverage Ratio shall be calculated giving
pro forma effect thereto for such period as if such Investment, acquisition, disposition, merger, consolidation or disposed operation had occurred at the beginning of the applicable four quarter
period. 

        For
purposes of this definition, whenever pro forma effect is to be given to a transaction, the pro forma calculations shall be made in good faith by a responsible financial or
accounting officer of such Person. If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest on such Indebtedness shall be calculated as if the rate in
effect on the Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligations applicable to such Indebtedness). Interest on a Capitalized Lease
Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting officer of such Person to be the rate of interest implicit in such Capitalized
Lease Obligation in accordance with GAAP. For purposes of making the computation referred to above, interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall
be computed based upon the average daily balance of such Indebtedness during the applicable period. Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor
of a prime or similar rate, a eurocurrency interbank offered rate, or other rate, shall be deemed to have been based upon the rate actually chosen, or, if none, then based upon such optional rate
chosen as such Person may designate. 

        "Fixed Charges" means, with respect to any Person for any period, the sum of, without duplication, (a) Consolidated Interest
Expense of such Person for such period, (b) all cash dividend payments (excluding items eliminated in consolidation) on any series of Preferred Stock (including any Designated Preferred Stock)
of such Person, and (c) all cash dividend payments (excluding items eliminated in consolidation) on any series of Disqualified Stock. 

        "Foreign Currency Commitment" means as to any Lender, its obligation to make a Foreign Currency Loan to the Borrower pursuant to
Section 2.1(a) and to extend into Extended Loans as provided in Section 2.1(b) in an aggregate amount not to exceed the Euro-denominated amount set forth under such Lender's
name in Schedule 2.1(a) opposite the caption "Foreign Currency Commitment Amount" or in the Assignment and Acceptance pursuant to which a Lender
acquires its Commitment, as the same may be adjusted pursuant to Section 13.6. The aggregate Foreign Currency Commitment on the Funding Date is €419,076,355.71. 

        "Foreign Currency Loan" is defined in Section 2.1(a). 

        "Foreign Subsidiary" means, with respect to any Person, any Restricted Subsidiary of such Person that is not organized or existing under
the laws of the United States, any State thereof, the District of Columbia, or any territory thereof. 

        "Funding Date" means the date on which the funding of the Initial Loans is made. 

        "GAAP" means generally accepted accounting principles in the United States, which are in effect on July 23, 2003. For the purposes
of this Agreement, the term "consolidated" with respect to any Person shall mean such Person consolidated with its Restricted Subsidiaries, and shall
not include any Unrestricted Subsidiary. 

        "Governmental Authority" means any nation or government, any state or other political subdivision thereof, and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

        "Government Securities" means securities that are (a) direct obligations of the United States of America for the timely payment of
which its full faith and credit is pledged, or (b) obligations of a 

13

 

Person
controlled or supervised by and acting as an agency or instrumentality of the United States of America the timely payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case, are not callable or redeemable at the option of the issuers thereof, and shall also include a depository receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act), as custodian with respect to any such Government Securities or a specific payment of principal of or interest on any such Government
Securities held by such custodian for the account of the holder of such depository receipt; provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the Government Securities or the specific
payment of principal of or interest on the Government Securities evidenced by such depository receipt. 

        "guarantee" means a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business),
direct or indirect, in any manner (including, without limitation, letters of credit and reimbursement agreements in respect thereof), of all or any part of any Indebtedness or other obligations. 

        "Guarantee" means any guarantee of the obligations of the Borrower under this Agreement and the Loans by a Guarantor in accordance with
the provisions of this Agreement and pursuant to the Guarantee Agreement or a Guarantee Supplement. When used as a verb, "Guarantee" shall have a
corresponding meaning. 

        "Guarantee Agreement" means a Guarantee Agreement substantially in the form of Exhibit E, including any Guarantee Supplement. 

        "Guarantee Supplement" means a Guarantee Supplement, substantially in the form of Annex A to the Guarantee Agreement, entered into
pursuant to the terms hereof and thereof. 

        "Guarantors" means all Restricted Subsidiaries that are Domestic Subsidiaries (other than certain special-purpose Restricted Subsidiaries
formed in connection with Receivables Facilities) as of the Closing Date. 

        "Hazardous Materials" means (a) any petroleum or petroleum products, radioactive materials, friable asbestos, urea formaldehyde
foam insulation, transformers or other equipment that contain dielectric fluid containing regulated levels of polychlorinated biphenyls, and radon gas; (b) any chemicals,
materials or substances defined as or included in the definition of "hazardous substances", "hazardous waste", "hazardous materials", "extremely hazardous waste", "restricted hazardous waste", "toxic
substances", "toxic pollutants", "contaminants", or "pollutants", or words of similar import, under any applicable Environmental Law; and (c) any other chemical, material or substance, exposure
to which is prohibited, limited or regulated by any Environmental Law. 

        "Hedging Obligations" means, with respect to any Person, the obligations of such Person under (a) currency exchange, interest rate
or commodity swap agreements, currency exchange, interest rate or commodity cap agreements and currency exchange, interest rate or commodity collar agreements and (b) other agreements or
arrangements designed to protect such Person against fluctuations in currency exchange, interest rates or commodity prices. 

        "Holders" means the Lenders. 

        "Holdings" means Rockwood Specialties International, Inc., a Delaware corporation. 

        "Indebtedness" means, with respect to any Person, (a) any indebtedness (including principal and premium) of such Person, whether or
not contingent (i) in respect of borrowed money, (ii) evidenced by bonds, notes, debentures or similar instruments or letters of credit or bankers' acceptances (or, 

14

 

without
double counting, reimbursement agreements in respect thereof), (iii) representing the balance deferred and unpaid of the purchase price of any property (including Capitalized Lease
Obligations), except any such balance that constitutes a trade payable or similar obligation to a trade creditor, in each case accrued in the ordinary course of business or (iv) representing
any Hedging Obligations, if and to the extent that any of the foregoing Indebtedness (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet (excluding
the footnotes thereto) of such Person prepared in accordance with GAAP, (b) to the extent not otherwise included, any obligation by such Person to be liable for, or to pay, as obligor,
guarantor or otherwise, on the Indebtedness of another Person (other than by endorsement of negotiable instruments for collection in the ordinary course of business) and (c) to the extent not
otherwise included, Indebtedness of another Person secured by a Lien on any asset owned by such Person (whether or not such Indebtedness is assumed by such Person); provided,
however, that Contingent Obligations incurred in the ordinary course of business shall be deemed not to constitute Indebtedness and obligations under or in respect of
Receivables Facilities shall not be deemed to constitute Indebtedness. 

        "Independent Financial Advisor" means an accounting, appraisal, investment banking firm or consultant to Persons engaged in Similar
Businesses of nationally recognized standing that is, in the good faith judgment of the Borrower, qualified to perform the task for which it has been engaged. 

        "Initial Loans" is defined in Section 2.1(a). 

        "Initial Maturity Date" means the date that is eighteen months after the Funding Date. 

        "Interest Payment Date" is defined in Section 2.7(e). 

        "Interest Period" means the interest period applicable to any Loan, as set forth in Section 2.8. 

        "Investment Grade Securities" means (a) securities issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality thereof (other than Cash Equivalents), (b) debt securities or debt instruments with a rating of BBB- or higher by S&P or Baa3 or higher
by Moody's or the equivalent of such rating by such rating organization, or, if no rating by S&P or Moody's then exists, the equivalent of such rating by any other nationally recognized securities
rating agency, but excluding any debt securities or instruments constituting loans or advances among the Borrower and its Subsidiaries, (c) investments in any fund that invests exclusively in
investments of the type described in clauses (a) and (b) which fund may also hold immaterial amounts of cash pending investment and/or distribution and (d) corresponding
instruments in countries other than the United States customarily utilized for high quality investments. 

        "Investments" means, with respect to any Person, all investments by such Person in other Persons (including Affiliates) in the form of
loans (including guarantees), advances or capital contributions (excluding accounts receivable, trade credit, advances to customers, commission, travel and similar advances to officers and employees,
in each case made in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities issued by any other Person and
investments that are required by GAAP to be classified on the balance sheet (excluding the footnotes) of such Person in the same manner as the other investments included in this definition to the
extent such transactions involve the transfer of cash or other property. For purposes of the definition of "Unrestricted Subsidiary" and
Section 10.2, (i) "Investments" shall include the portion (proportionate to the Borrower's equity interest in such Subsidiary) of the fair
market value of the net assets of a Subsidiary of the Borrower at the time that such Subsidiary is designated an Unrestricted Subsidiary; provided,  however,
 that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Borrower shall be deemed to continue to have a permanent
"Investment" in an Unrestricted Subsidiary in an amount (if positive) equal to (x) the Borrower's
"Investment" in such Subsidiary at the time of such redesignation less (y) the portion
(proportionate to the Borrower's equity interest in such 

15

 

Subsidiary)
of the fair market value of the net assets of such Subsidiary at the time of such redesignation; and (ii) any property transferred to or from an Unrestricted Subsidiary shall be
valued at its fair market value at the time of such transfer, in each case as determined in good faith by the Borrower. 

        "Judgment Currency" is defined in Section 3.16 (a). 

        "Judgment Currency Conversion Date" is defined in Section 3.16(a). 

        "July 2003 Equity Contribution" means the common equity contribution in the amount of $25.0 million made to the Borrower by
the Sponsors in July 2003. 

        "Lead Arrangers" is defined in the recitals. 

        "Lenders" means (a) the financial institutions listed on the signature pages of this Agreement (other than any such financial
institution that has ceased to be a party hereto pursuant to an Assignment and Acceptance) and (b) any financial institution that has become a party hereto pursuant to an Assignment and
Acceptance. 

        "Letter of Credit Obligations" means all Obligations in respect of Indebtedness of the Borrower with respect to letters of credit issued
pursuant to the Senior Secured Credit Facilities which Indebtedness
shall be deemed to consist of (a) the aggregate maximum amount available to be drawn under all such letters of credit (the determination of such aggregate maximum amount to assume compliance
with all conditions for drawing) and (b) the aggregate amount that has been paid by, and not reimbursed to, the fronting bank and the lenders under such letters of credit. 

        "LIBOR" means, in the case of any Dollar Loan, with respect to each day during each Interest Period pertaining to such Dollar Loan, the
rate of interest per annum determined by the Administrative Agent at approximately 11:00 a.m., London time, on the date that is two Business Days prior to the commencement of such Interest
Period by reference to the British Bankers' Association Interest Settlement Rates for deposits in Dollars (as set forth by the Bloomberg Information Service or any successor thereto or any other
service selected by the Administrative Agent which has been nominated by the British Bankers' Association as an authorized information vendor for the purpose of displaying such rates) for a period
equal to such Interest Period, provided that, to the extent that an interest rate is not ascertainable pursuant to the foregoing provisions of this
definition, "LIBOR" shall be the interest rate per annum determined by the Administrative Agent to be the average of the rates per annum at which
deposits in Dollars in an amount comparable to the relevant Dollar Loan are offered for such relevant Interest Period to major banks in the London interbank market in London, England by the
Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of such Interest Period. 

        "Lien" means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of
such asset, whether or not filed, recorded or otherwise perfected under applicable law (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option
or other agreement to sell or give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction); provided that in no event shall an operating lease be deemed to constitute a Lien. 

        "Loans" means the Initial Loans and the Extended Loans. 

        "Local Time" means (a) with respect to a Dollar Loan, New York time, and (b) with respect to a Foreign Currency Loan, London
time. 

16

 

        "Management Group" means at any time, the Chairman of the Board of Directors, any President, any Executive Vice President or Vice
President, any Managing Director, any Treasurer and any Secretary or other executive officer of any of the Parent Companies, the Borrower or any Subsidiary of any such company at such time. 

        "Margin Stock" is defined in Regulation U. 

        "Material Adverse Change" means any change in the business, assets, operations, properties or financial condition of the Borrower and its
Subsidiaries, taken as a whole, that would materially adversely affect the ability of the Borrower and the other Credit Parties taken as a whole to perform their obligations under this Agreement and
the other Credit Documents. 

        "Material Adverse Effect" means a circumstance or condition affecting the business, assets, operations, properties or financial condition
of the Borrower and its Subsidiaries, taken as a whole, that would materially adversely affect (a) the ability of the Borrower and the other Credit Parties, taken as a whole, to perform their
obligations under this Agreement or any of the other Credit Documents or (b) the rights and remedies of the Administrative Agent and the Lenders under this Agreement or any of the other Credit
Documents. 

        "Material Subsidiary" means, at any date of determination, any Restricted Subsidiary (a) whose total assets at the last day of the
Test Period ending on the last day of the most recent fiscal period for which Section 9.1 Financial Statements have been delivered were equal to or greater than 5% of the consolidated total
assets of the Borrower and the Restricted Subsidiaries at such date or (b) whose gross revenues for such Test Period were equal to or greater than 5% of the consolidated gross revenues of the
Borrower and the Restricted Subsidiaries for such period, in each case determined in accordance with GAAP. 

        "Moody's" means Moody's Investors Service Inc. or any successor by merger or consolidation to its business. 

        "Net Income" means, with respect to any Person, the net income (loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of Preferred Stock dividends. 

        "Net Proceeds" means the total cash consideration received by the Borrower or any Restricted Subsidiary in respect of (a) any Asset
Sale (including without limitation, (i) any cash received upon the sale or other disposition of any Designated Non-cash Consideration received in any Asset Sale and (ii) the
amount of any debt owed to the Borrower or any Restricted Subsidiary by the Borrower or any Restricted Subsidiary disposed of which is repaid in connection with that disposal), (b) any Debt
Incurrence Prepayment Event and (c) any Equity Issuance Prepayment Event; but (i) in the case of any Prepayment Event, net of (A) the amount of any tax required to be paid by the
Borrower as a result of such Prepayment Event, (B) all other reasonable costs and expenses properly incurred by the Borrower or any Restricted Subsidiary in connection with such Prepayment
Event, (C) any amount contractually required to be paid to the employees of any disposed business, in the case of an Asset Sale, (D) the amount of any reasonable reserve established in
accordance with GAAP with respect to such Prepayment Event against any liabilities (other than any taxes deducted pursuant to clause (A) above) (1) associated with the assets that are
the subject of such Prepayment Event and (2) retained by the Borrower or any of the Restricted Subsidiaries, provided that the amount of any
subsequent reduction of such reserve (other than in connection with a payment in respect of any such liability) shall be deemed to be Net Proceeds of such a Prepayment Event occurring on the date of
such reduction and (E) the amount of any Indebtedness secured by a Lien on the assets that are the subject of such Prepayment Event to the extent that the instrument creating or evidencing such
Indebtedness requires that such Indebtedness be repaid or prepaid or upon consummation of such Prepayment Event and (ii) in the case of an Asset Sale only, net of the amount of any proceeds of
such Asset Sale that the 

17

 

Borrower
or any Restricted Subsidiary has either used to repay Indebtedness, including pursuant to an Asset Sale Offer, in accordance with Section 10.1 or has reinvested (or intends to reinvest
within one year of the date of such Asset Sale) in the business of the Borrower or any of the Restricted Subsidiaries (subject to Section 9.12) in accordance with Section 10.1. 

        "Non-Excluded Taxes" is defined in Section 5.4(a). 

        "Non-U.S. Lender" is defined in Section 5.4(a). 

        "Notes" is defined in Section 13.6(d). 

        "Notice of Borrowing" is defined in Section 2.3(a). 

        "Obligation Currency" is defined in Section 13.16(a). 

        "Obligations" means any principal, interest, penalties, fees, indemnifications, reimbursements (including, without limitation,
reimbursement obligations with respect to letters of credit and banker's acceptances), damages and other liabilities, and guarantees of payment of such principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities, payable under the documentation governing any Indebtedness. 

        "Officer" means the Chairman of the Board, the President, any Executive Vice President, Senior Vice President or Vice President, the
Treasurer or the Secretary of the Borrower. 

18

   
        "Officers' Certificate" means a certificate signed on behalf of the Borrower by two Officers of the Borrower one of whom must be the
principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Borrower. 

        "Original Purchase Agreement" means the Business and Share Sale and Purchase Agreement dated September 25, 2000, between the
Original Seller and Parent pursuant to which Parent, the Borrower and the Subsidiaries (i) acquired from the Original Seller (x) all of the Original Seller's assets (including capital
stock) primarily used in the conduct of the Original Seller's Plastics & Compounding, Water Technologies, Timber Treatments, Water Treatments, GD Holmes, Electronics, Pigments and Additives
business divisions and (y) all the outstanding capital stock of Laporte Electronics France, S.A. and (ii) assumed certain liabilities of the Original Seller, all as provided in such
purchase agreement, for consideration payable to the Original Seller in the aggregate amount of $1,175,000,000 in cash (subject to certain purchase price adjustments in accordance with such purchase
agreement). 

        "Original Seller" means Laporte plc. 

        "Parent" means Rockwood Holdings, Inc., a Delaware corporation. 

        "Parent Companies" means Parent, PIK Holdco and Holdings. 

        "Participant" is defined in Section 13.6(b). 

        "Payment Blockage Notice" is defined in Section 3.3. 

        "Payment Blockage Period" is defined in Section 3.3. 

        "Payment Sharing Notice" means a notice from any Lender to the Administrative Agent stating that an Event of Default has occurred and that
such Lender requires that all payments received by the Administrative Agent under this Agreement or any Note or any Credit Document be distributed in accordance with Section 5.6(b)(ii). 

        "PBGC" means the United States Pension Benefit Guaranty Corporation established pursuant to Section 4002 of ERISA, or any successor
thereto. 

        "Pension Plan" means any plan in which the Borrower or more of its Subsidiaries participates that provides for retirement, health, medical
or other similar benefits for employees or retirees of the Borrower or one or more of its Subsidiaries. 

        "Permitted Asset Swap" means the concurrent purchase and sale or exchange of Related Business Assets or a combination of Related Business
Assets and cash or Cash Equivalents between the Borrower or any Restricted Subsidiary and another Person; provided, that any cash or Cash Equivalents
received must be applied in accordance with Sections 10.1 and, to the extent applicable, 5.2. 

        "Permitted Holders" means the Sponsors and their respective Affiliates and the Management Group. 

        "Permitted Investments" means (i) any Investment in the Borrower or any Restricted Subsidiary; (ii) any Investment in cash
and Cash Equivalents or Investment Grade Securities; (iii) any Investment by the Borrower or any Restricted Subsidiary in a Person that is engaged in a Similar Business if as a result of such
Investment (A) such Person becomes a Restricted Subsidiary or (B) such Person, in one transaction or a series of related transactions, is merged, consolidated or amalgamated with or
into, or transfers or conveys substantially all of its assets to, or is liquidated into, the Borrower or a Restricted Subsidiary; (iv) any Investment in securities or other assets not
constituting cash or Cash Equivalents and received in connection with an Asset Sale made pursuant to Section 10.1 or any other disposition of assets not constituting an Asset Sale;
(v) any Investment existing on July 23, 2003; (vi) advances to employees not in excess of $25.0 million outstanding at any one time, in the aggregate; (vii) any
Investment acquired by the Borrower or any Restricted Subsidiary (A) in exchange for any other 

19

 

Investment
or accounts receivable held by the Borrower or any such Restricted Subsidiary in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of the issuer of
such other Investment or accounts receivable or (B) as a result of a foreclosure by the Borrower or any Restricted Subsidiary with respect to any secured Investment or other transfer of title
with respect to any secured Investment in default; (viii) Hedging Obligations permitted under Section 10.3(b)(x); (ix) loans and advances to officers, directors and employees for
business-related travel expenses, moving expenses and other similar expenses, in each case incurred in the ordinary course of business; (x) any Investment in a Similar Business having an
aggregate fair market value, taken together with all other Investments made pursuant to this clause (x) that are at the time outstanding (without giving effect to the sale of an Unrestricted
Subsidiary to the extent the proceeds of such sale do not consist of cash and/or marketable securities, not to exceed the greater of (x) $150.0 million and (y) 4.0% of Total
Assets at the time of such Investment (with the fair market value of each Investment being measured at the time made and without giving effect to subsequent changes in value); (xi) Investments
the payment for which consists of Equity Interests of the Borrower or any of its direct or indirect parent corporations (exclusive of Disqualified Stock); (xii) guarantees of Indebtedness
permitted under Section 10.3; (xiii) any transaction to the extent it constitutes an investment that is permitted and made in accordance with Section 10.6(b) (except transactions
described in clauses (ii), (vi), (vii) and (xi) of Section 10.6(b)); (xiv) Investments consisting of the licensing or contribution of intellectual property pursuant to
joint marketing arrangements with other Persons; (xv) additional Investments having an aggregate fair market value, taken together with all other Investments made pursuant to this
clause (xv) that are at that time outstanding (without giving effect to the sale of an Unrestricted Subsidiary to the extent the proceeds of such sale do not consist of cash and/or marketable
securities), not to exceed the greater of (x) $90.0 million and (y) 2.5% of Total Assets at the time of such Investment (with the fair market value of each Investment being
measured at the time made and without giving effect to subsequent changes in value); and (xvi) Investments relating to any special purpose wholly-owned subsidiary of the Borrower organized in
connection with a Receivables Facility that, in the good faith determination of the Board of Directors of the Borrower, are necessary or advisable to effect such Receivables Facility. 

        "Permitted Liens" means (i) Liens on assets of the Borrower or any Guarantor securing Senior Indebtedness that was permitted by the
terms of this Agreement to be incurred; (ii) Liens in favor of the Borrower or the Guarantors; (iii) Liens on property of a Person existing at the time such Person is merged with or into
or consolidated with the Borrower or any Subsidiary of the Borrower; provided that such Liens were in existence prior to the contemplation of such
merger or consolidation and do not extend to any assets other than those of the Person merged into or consolidated with the Borrower or the Subsidiary; (iv) Liens on property (including Capital
Stock) existing at the time of acquisition of the property by the Borrower or any Subsidiary of the Borrower; provided that such Liens were in existence
prior to, such acquisition, and not incurred in contemplation of, such acquisition; (v) Liens to secure the performance of statutory obligations, surety or appeal bonds, performance bonds or
other obligations of a like nature incurred in the ordinary course of business; (vi) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by
Section 10.3(b)(iv) covering only the assets acquired with or financed by such Indebtedness; (vii) Liens existing on the date of this Agreement; (viii) Liens for taxes,
assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded;  provided that
any reserve or other appropriate provision as is required in conformity with GAAP has been made therefor; (ix) Liens imposed by
law, such as carriers', warehousemen's, landlord's and mechanics' Liens, in each case, incurred in the ordinary course of business; (x) survey exceptions, easements or reservations of, or
rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use
of real property that were not incurred in connection with Indebtedness and that do not in the aggregate materially adversely affect the value of said properties or 

20

 

materially
impair their use in the operation of the business of such Person; (xi) Liens created for the benefit of (or to secure) the Loans (or the Guarantees); (xii) Liens to secure
any Refinancing Indebtedness permitted to be incurred under this Agreement; provided, however, that: (a) the new Lien shall be limited to all or
part of the same property and assets that secured or, under the written agreements pursuant to which the original Lien arose, could secure the original Lien (plus improvements and accessions to, such
property or proceeds or distributions thereof); and (b) the Indebtedness secured by the new Lien is not increased to any amount greater than the sum of (x) the outstanding principal
amount, or, if greater, committed amount, of the Refinancing Indebtedness and (y) an amount necessary to pay any fees and expenses, including premiums, related to such renewal, refunding,
refinancing, replacement, defeasance or discharge; and (xiii) Liens incurred in the ordinary course of business of the Borrower or any Subsidiary of the Borrower with respect to obligations
that do not exceed $5.0 million at any one time outstanding. 

        "Person" means any individual, corporation, limited liability company, partnership, joint venture, association, joint stock company,
trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity. 

        "PIK Holdco" means Rockwood Specialties Consolidated, Inc., a Delaware corporation. 

        "PIK Interest Amount" means the aggregate amount equal to the amount of interest borne by an Extended Loan (or Note) in excess of
(i) 12.0% per annum (excluding reserve asset costs) if the
Extended Loans are rated at or above the Ratings Threshold and (ii) 12.5% per annum (excluding reserve asset costs) if the Extended Loans are rated below the Ratings Threshold. 

        "Plan" means any multiemployer or single-employer plan, as defined in Section 4001 of ERISA and subject to Title IV of ERISA, that
is or was within any of the preceding five plan years maintained or contributed to by (or to which there is or was an obligation to contribute or to make payments of) the Borrower, a Subsidiary of the
Borrower or an ERISA Affiliate. 

        "Preferred Stock" means any Equity Interest with preferential rights of payment of dividends or upon liquidation, dissolution, or winding
up. 

        "Prepayment Amount" is defined in Section 5.1(a). 

        "Prepayment Event" means any Debt Incurrence Prepayment Event, any Asset Sale Prepayment Event or any Equity Issuance Prepayment Event. 

        "Qualified Proceeds" means assets that are used or useful in, or Capital Stock of any Person engaged in, a Similar Business;  provided that the fair market value of any
such assets or Capital Stock shall be determined by the Board of Directors in good faith. 

        "Quotation Day" means, with respect to any Foreign Currency Loan and any Interest Period, the day on which it is market practice in the
relevant interbank market for prime banks to give quotations for deposits in the currency of such Foreign Currency Loan for delivery on the first day of such Interest Period. If such quotations would
normally be given by prime banks on more than one day, the Quotation Day will be the last of such days. 

        "Ratings Threshold" means a rating of the Extended Loans by S&P of B- and Moody's of B3. 

        "Real Estate" is defined in Section 9.1(f). 

        "Recalculation Date" is defined in Section 1.2(a). 

        "Receivables Facility" means one or more receivables financing facilities, as amended from time to time, the Indebtedness of which is
non-recourse (except for standard representations, warranties, covenants and indemnities made in connection with such facilities) to the Borrower and all Restricted 

21

 

Subsidiaries
pursuant to which the Borrower and/or any of the Restricted Subsidiaries sells its accounts receivable to a Person that is not a Restricted Subsidiary. 

        "Receivables Fees" means distributions or payments made directly or by means of discounts with respect to any participation interest
issued or sold in connection with, and other fees paid to a Person that is not a Restricted Subsidiary in connection with, any Receivables Facility. 

        "Refinancing Date" means the date that is 91 days prior to the maturity of the 2011 Notes. 

        "Refinancing Indebtedness" is defined in Section 10.3(b)(xv), and "refinances," and
"refinanced" shall have a correlative meaning. 

        "Refunding Capital Stock" is defined in Section 10.2(b)(ii). 

        "Register" is defined in Section 13.6(e). 

        "Regulation D" means Regulation D of the Board as from time to time in effect and any successor to all or a portion thereof
establishing reserve requirements. 

        "Regulation T" means Regulation T of the Board as from time to time in effect and any successor to all or a portion thereof
establishing margin requirements. 

        "Regulation U" means Regulation U of the Board as from time to time in effect and any successor to all or a portion thereof
establishing margin requirements. 

        "Regulation X" means Regulation X of the Board as from time to time in effect and any successor to all or a portion thereof
establishing margin requirements. 

        "Related Business Assets" means assets (other than cash or Cash Equivalents) used or useful in a Similar Business;  provided that any assets received by the Borrower or a
Restricted Subsidiary in exchange for assets transferred by the Borrower or a Restricted
Subsidiary shall not be deemed to be Related Business Assets if they consist of securities of a Person, unless upon receipt of the securities of such Person, such Person would become a Restricted
Subsidiary. 

        "Reportable Event" means an event described in Section 4043 of ERISA and the regulations thereunder. 

        "Representative" means the trustee, agent or representative (if any) for an issue of Senior Indebtedness of the Borrower. 

        "Required Lenders" means, at any date, Holders having or holding Loans representing at least a majority of the Dollar Equivalent of the
outstanding principal amount of the Loans outstanding at such date. 

        "Requirement of Law" means, as to any Person, the Certificate of Incorporation and By-Laws or other organizational or
governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon
such Person or any of its property or assets or to which such Person or any of its property or assets is subject. 

        "Restricted Investment" means an Investment other than a Permitted Investment. 

        "Restricted Payment" is defined in Section 10.2. 

        "Restricted Subsidiary" means, at any time any direct or indirect Subsidiary of the Borrower (including any Foreign Subsidiary) that is
not then an Unrestricted Subsidiary; provided, however, that upon the occurrence of an Unrestricted
Subsidiary ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be included in the definition of "Restricted Subsidiary." 

        "Retired Capital Stock" is defined in Section 10.2(b)(ii). 

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        "Rockwood Group" means the Borrower and its Restricted Subsidiaries immediately prior to the Acquisition. 

        "RSGI Dollar Debt Escrow Account" shall mean Dollar Account Number 313122 established with the Financing Escrow Agent, to be administered
pursuant to the terms of the Financing Escrow Agreement. 

        "RSGI Euro Debt Escrow Account" shall mean Euro Account Number 7357879780 established with the Financing Escrow Agent, to be administered
pursuant to the terms of the Financing Escrow Agreement. 

        "S&P" means Standard and Poor's Ratings Services or any successor by merger or consolidation to its business. 

        "SEC" means the United States Securities and Exchange Commission or any successor thereto. 

        "Section 9.1 Financial Statements" means financial statements to be delivered by or on behalf of the Borrower pursuant to
Section 9.1. 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 

        "Sellers" is defined in the recitals. 

        "Senior Discount Notes" means the Senior Discount Notes of Holdings, issued on July 23, 2003 or any refinancing thereof in the form
of Indebtedness or Preferred Stock; provided, however, that such refinanced Indebtedness or Preferred Stock (i) shall be incurred by Holdings,
(ii) does not have a maturity date which is prior to August 15, 2011, (iii) does not require cash interest or cash dividends to be paid prior to August 15, 2007,
(iv) does not have an effective interest rate or dividend rate that exceeds 12% per annum and (v) does not have terms and conditions which taken as a whole, are materially
disadvantageous to the Holders of the Loans as compared to the Senior Discount Notes. 

        "Senior Indebtedness" means (i) the Obligations under the Senior Secured Credit Facilities and (ii) any other Indebtedness
permitted to be incurred by the Borrower under the terms of this Agreement, unless the instrument under which such Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Loans, including, with respect to clauses (i) and (ii), interest accruing subsequent to the filing of, or which would have accrued but for the filing of,
a petition for bankruptcy, in accordance with and at the rate (including any rate applicable upon any default or event of default, to the extent lawful) specified in the documents evidencing or
governing such Senior Indebtedness, to the extent such interest is an allowable claim in such bankruptcy proceeding. Notwithstanding anything to the contrary in the foregoing, Senior Indebtedness will
not include (1) any liability for foreign, federal, state, local or other taxes owed or owing by the Borrower, (2) any obligation of the Borrower to its direct or indirect parent
corporations or to any of its Subsidiaries or to any other Affiliate of the Borrower or any of such Affiliate's Subsidiaries, (3) any amounts owed to the Borrower for compensation to employees
or for services rendered to the Borrower, (4) any accounts payable or trade liabilities (including obligations in respect of funds held for the account of third parties) arising in the ordinary
course of business (including guarantees thereof or instruments evidencing such liabilities) other than Letter of Credit Obligations in respect of letters of credit under the Senior Secured Credit
Facilities, (5) any Indebtedness that is incurred in violation of this Agreement, (6) Indebtedness which, when incurred and without respect to any election under Section 1111(b)
of Title 11, United States Code, is without recourse to the Borrower, (7) any Indebtedness, guarantee or obligation of the Borrower which is subordinate or junior to any other Indebtedness,
guarantee or obligation of the Borrower, (8) Indebtedness evidenced by the Loans, (9) Capital Stock of the Borrower and (10) amounts owing under leases (other than Capitalized
Lease Obligations). "Senior Indebtedness" of any Guarantor has a correlative meaning. 

23

 

        "Senior Secured Credit Agreement" is defined in the recitals. 

        "Senior Secured Credit Facilities" means the Senior Secured Credit Agreement, including any guarantees, collateral documents, instruments
and agreements executed in connection therewith, and any amendments, supplements, modifications, extensions, renewals, restatements or refundings thereof and any indentures or credit facilities or
commercial paper facilities with banks or other institutional lenders or investors that replace, refund or refinance any part of the loans, notes, other credit facilities or commitments thereunder,
including any such replacement, refunding or refinancing facility or indenture that increases the amount borrowable thereunder or alters the maturity thereof. 

        "Senior Subordinated Indebtedness" means (a) with respect to the Borrower, Indebtedness which ranks pari passu in right of payment
to the Loans and (b) with respect to any Guarantor, Indebtedness which ranks pari passu in right of payment to the Guarantee of such Guarantor. 

        "Senior Term Loans" means the term loans made pursuant to the Senior Secured Credit Agreement. 

        "Significant Subsidiary" means any Restricted Subsidiary that would be a "significant
subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is
in effect on the date hereof. 

24

   
        "Similar Business" means the development, manufacture and distribution and/or provision of chemicals, chemical processes or performance
materials and any services, activities or businesses incidental or directly related or similar thereto, or any line of businesses engaged in by the Borrower and its Subsidiaries or the Target Business
or any business activity that is a reasonable extension, development or expansion thereof or ancillary thereto. 

        "Sponsors" is defined in the recitals. 

        "Statutory Reserves" means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is
the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board and any
other banking authority, domestic or foreign, to which the Administrative Agent or any Lender (including any branch, Affiliate, or other fronting office making or holding a Loan) is subject with
respect to LIBOR or EURIBOR, for Eurocurrency Liabilities (as defined in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D.
Loans shall be deemed to constitute Eurocurrency Liabilities and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from
time to time to any Lender under such Regulation D. Statutory Reserves shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 

        "Subordinated Indebtedness" means (a) with respect to the Borrower, any Indebtedness of the Borrower which is by its terms
subordinated in right of payment to the Loans and (b) with respect to any Guarantor, any Indebtedness of such Guarantor which is by its terms subordinated in right of payment to the Guarantee
of such Guarantor. 

        "Subsidiary" means, with respect to any Person, (i) any corporation, association, or other business entity (other than a
partnership, joint venture, limited liability company or similar entity) of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof is at the time of determination owned or controlled, directly or indirectly, by such Person or one or more of the other
Subsidiaries of that Person or a combination thereof and (ii) any partnership, joint venture, limited liability company or similar entity of which (x) more than 50% of the capital
accounts, distribution rights, total equity and voting interests or general or limited partnership interests, as applicable, are owned or controlled, directly or indirectly, by such Person or one or
more of the other Subsidiaries of that Person or a combination thereof whether in the form of membership, general, special or limited partnership or otherwise and (y) such Person or any
Restricted Subsidiary of such Person is a controlling general partner or otherwise controls such entity. 

        "Successor Company" is defined in Section 10.5(a). 

        "Successor Person" is defined in Section 10.5(b). 

        "Syndication Agent" is defined in the recitals. 

        "Systems/Organizational Establishment Expenses" means the aggregate of all expenditures (whether paid in cash or accrued as liabilities)
by the Borrower and the Restricted Subsidiaries in (i) establishing financial, information technology and other similar systems of the Borrower and the Restricted Subsidiaries, including costs
of the transition and integration of any such systems acquired in the Acquisition, as a direct result of the establishment of the business acquired in the Acquisition as a standalone business
following the Acquisition and (ii) establishing the business acquired in the Acquisition as a standalone business following the Acquisition including the amortization of sign-on
compensation arrangements for key executives; provided that such expenses for the period after January 1, 2003 shall not exceed
$4.0 million in the aggregate. 

        "Target Business" is defined in the recitals. 

25

 

        "Test Period" means, for any determination under this Agreement, the four consecutive fiscal quarters of the Borrower then last ended. 

        "Total Assets" means the total assets of the Borrower and the Restricted Subsidiaries, as shown on the most recent balance sheet of the
Borrower. 

        "Total Commitments" means the sum of the Commitments. 

        "Total Credit Exposure" means, at any date, the sum of the Dollar Equivalent of the outstanding principal amount of all Loans at such
date. 

        "Transactions" is defined in the recitals. 

        "Transferee" is defined in Section 13.6. 

        "Treaty on European Union" means the Treaty of Rome of March 25, 1957, as amended by the Single European Act 1986 and the
Maastricht Treaty (which was signed at Maastricht on February 7, 1992, and came into force on November 1, 1993), as amended from time to time. 

        "UK Borrower Debt Escrow Account" shall mean Euro Account Number 8371059780 established by the Financing Escrow Agent, to be administered
pursuant to the terms of the Financing Escrow Agreement. 

        "Unfunded Current Liability" of any Plan means the amount, if any, by which the present value of the accrued benefits under the Plan as of
the close of its most recent plan year, determined in accordance with Statement of Financial Accounting Standards No. 87 as in effect on the date hereof, based upon the actuarial assumptions
that would be used by the Plan's actuary in a termination of the Plan, exceeds the fair market value of the assets allocable thereto. 

        "United States" means the United States of America. 

        "Unrestricted Subsidiary" means (i) any Subsidiary of the Borrower which at the time of determination is an Unrestricted Subsidiary
(as designated by the Board of Directors of the Borrower, as provided below) and (ii) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors of the Borrower may designate any
Subsidiary of the Borrower (including any existing Subsidiary and any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns
any Equity Interests or Indebtedness of, or owns or holds any Lien on, any property of, the Borrower or any Subsidiary of the Borrower (other than any Subsidiary of the Subsidiary to be so
designated), provided that (a) any Unrestricted Subsidiary must be an entity of which shares of the Capital Stock or other Equity Interests
(including partnership interests) entitled to cast at least a majority of the votes that may be cast by all shares or Equity Interests having ordinary voting power for the election of directors or
other governing body are owned, directly or indirectly, by the Borrower, (b) such designation complies with the covenants described in Section 10.2 and (c) each of (I) the
Subsidiary to be so designated and (II) its Subsidiaries has not at the time of designation, and does not thereafter, create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable with respect to any Indebtedness pursuant to which the lender has recourse to any of the assets of the Borrower or any Restricted Subsidiary. The Board of Directors of the Borrower
may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that, immediately after giving effect to such designation no Default
or Event of Default shall have occurred and be continuing and either (i) the Borrower could incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test
described in Section 10.3(a) or (ii) the Fixed Charge Coverage Ratio for the Borrower and the Restricted Subsidiaries would be greater than such ratio for the Borrower and the Restricted
Subsidiaries immediately prior to such designation, in each case on a pro forma basis taking into account such designation. Any such designation by the Board of Directors of the Borrower shall be
notified by the Borrower to the Administrative Agent by promptly filing with the 

26

 

Administrative
Agent a copy of the Board Resolution giving effect to such designation and an Officers' Certificate certifying that such designation complied with the foregoing provisions. 

        "Voting Stock" of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of
the Board of Directors of such Person. 

        "Weighted Average Life to Maturity" means, when applied to any Indebtedness or Disqualified Stock or Preferred Stock, as the case may be,
at any date, the quotient obtained by dividing (i) the sum of the products of the number of years from the date of determination to the date of each successive scheduled principal payment of
such Indebtedness or redemption or similar payment with respect to such Disqualified Stock multiplied by the amount of such payment, by (ii) the sum of all such payments. 

        "Wholly Owned Restricted Subsidiary" is any Wholly Owned Subsidiary that is a Restricted Subsidiary. 

        "Wholly Owned Subsidiary" of any Person means a Subsidiary of such Person, 100% of the outstanding Capital Stock or other ownership
interests of which (other than directors' qualifying shares) shall at the
time be owned by such Person or by one or more Wholly Owned Subsidiaries of such Person or by such Person and one or more Wholly Owned Subsidiaries of such Person. 

        "2011 Notes" means the 105/8% Senior Subordinated Notes due 2011 of the Borrower issued pursuant to that certain Indenture,
dated as of July 23, 2003, among the Borrower, the guarantors party thereto and The Bank of New York, as trustee. 

        1.2    Exchange Rates.    

        (a)   Not
later than 1:00 p.m. (New York time) on each Calculation Date, the Administrative Agent shall (i) determine the Exchange Rate as of such Calculation
Date with respect to the Euro to be used for calculating the Dollar Equivalent and (ii) give notice thereof to the Lenders and the Borrower. The Exchange Rates so determined shall become
effective on the relevant Calculation Date (a "Recalculation Date"), shall remain effective until the next succeeding Recalculation Date, and shall for
all purposes of this Agreement (other than any provision expressly requiring the use of a current Exchange Rate) be the Exchange Rates employed in converting any amounts between Dollars and Euro. 

        (b)   For
purposes of determining compliance under Sections 10.1, 10.2, and 10.6, with respect to any amount in Euro, such amount shall be deemed to equal the Dollar
Equivalent thereof based on the average daily Exchange Rate for the Euro for the most recent twelve-month period immediately prior to the date of determination determined in a manner consistent with
that used in calculating EBITDA for the related period. For purposes of determining compliance with Sections 10.3 and 10.4, with respect to any amount of Indebtedness in Euro, compliance will be
determined at the time of incurrence thereof using the Dollar Equivalent thereof at the Exchange Rate in effect at the time of such incurrence. 

        SECTION
2.    Amount and Terms of Credit.    

        2.1    Commitment.    

        (a)   Subject
to and upon the terms and conditions herein set forth, each Lender agrees, severally and not jointly, to make to the Borrower: (i) a loan denominated in
Dollars (a "Dollar Loan") and/or (ii) a loan denominated in Euro (a "Foreign Currency Loan" and,
together with the Dollar Loan, the "Initial Loans"), which Initial Loans (i) shall be made on the Funding Date and the full amount of the
proceeds of the Dollar Loans shall be deposited on the Funding Date in the RSGI Dollar Debt Escrow Account to be held by the Financing Escrow Agent pursuant to the terms of the Financing Escrow
Agreement and the full amount of the proceeds of the Foreign Currency Loans shall be deposited on 

27

 

the
Funding Date in the RSGI Euro Debt Escrow Account to be held by the Financing Escrow Agent pursuant to the terms of the Financing Escrow Agreement, (ii) may be repaid in accordance with the
provisions hereof, but once repaid, may not be reborrowed, (iii) shall not exceed for any such Lender (x) in the case of a Dollar Loan, that aggregate principal amount that equals the
Dollar Commitment of such Lender at such time and (y) in the case of a Foreign Currency Loan, that aggregate principal amount that equals the Foreign Currency Commitment of such Lender at such
time and (iv) shall not, after giving effect thereto and the application of the proceeds thereof, exceed for all Lenders at any time outstanding the aggregate principal amount that equals the
Total Commitments then in effect. Each Lender may at its option make any Loan by causing a domestic or foreign branch or an Affiliate of such Lender to make such Loan,  provided that (A) any
exercise of such option shall not affect the obligation of the Borrower to repay such Loan and (B) if it exercises
such option, the Borrower shall not be required to pay any increased costs resulting therefrom. The Initial Loans deposited on the Funding Date in the RSGI Dollar Debt Escrow Account and the RSGI Euro
Debt Escrow Account shall be released from such accounts to the Borrower on the Closing Date only in accordance with the conditions for such release specified in the Financing Escrow Agreement. 

        (b)   Subject
to the terms and conditions hereof, each Lender severally agrees, if the Initial Loans have not been repaid on or prior to the Initial Maturity Date, that the
maturity of such Initial Loans shall automatically be extended to the Final Maturity Date (such extended Initial Loans, collectively, the "Extended
Loans"). Amounts repaid in respect of Extended Loans may not be reborrowed. 

        2.2    [Intentionally Omitted.]    

        2.3    Notice of Borrowing.    

        (a)   The
Borrower shall give the Administrative Agent at the location set forth in Section 13.2 prior to 12:00 noon (Local Time) at least one Business Day's prior
written notice (or telephonic notice promptly confirmed in writing) of the Borrowing of Initial Loans. Such notice (a "Notice of Borrowing") shall be
irrevocable and shall specify (i) the date of such Borrowing (which shall be a Business Day), (ii) the currency or currencies in which the Borrowing is to be made, which shall be either
Dollars or Euro, (iii) the amount of such Borrowing, (iv) the Interest Period to be initially applicable thereto and (v) remittance instructions. The Administrative Agent shall
promptly give each Lender written notice (or telephonic notice promptly confirmed in writing) of the Borrowing of Initial Loans, of such Lender's proportionate share thereof and of the other matters
covered by the related Notice of Borrowing. 

        (b)   Without
in any way limiting the obligation of the Borrower to confirm in writing any notice it may give hereunder by telephone, the Administrative Agent may act prior to
receipt of written confirmation without liability upon the basis of such telephonic notice believed by the Administrative Agent in good faith to be from an Officer of the Borrower. In each such case
the Borrower hereby waives the right to dispute the Administrative Agent's record of the terms of any such telephonic notice. 

        2.4    Disbursement of Funds.    

        (a)   Subject
to and upon the terms and conditions herein set forth, each Lender agrees, severally and not jointly, no later than 12:00 noon (Local Time) on the date specified
in the Notice of Borrowing, to make available its pro rata portion of the Borrowing requested to be made on such date in the manner provided below. 

        (b)   Each
Lender shall make available all amounts it is to fund under the Borrowing in Dollars or Euro, as the case may be, and in immediately available funds to the
Administrative Agent at the Administrative Agent's Office and the Administrative Agent will make available to the Borrower by depositing to the Borrower's account as designated in the Notice of
Borrowing the aggregate of the amounts so made available in the type of funds received. Unless the Administrative Agent shall have 

28

 

been
notified by any Lender prior to the date of the Borrowing that such Lender does not intend to make available to the Administrative Agent its portion of the Borrowing or Borrowings to be made on
such date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on such date of Borrowing, and the Administrative Agent, in reliance upon
such assumption, may (in its sole discretion and without any obligation to do so) make available to the Borrower a corresponding amount. If such corresponding amount is not in fact made available to
the Administrative Agent by such Lender and the Administrative Agent has made available same to the Borrower, the Administrative Agent shall be entitled to recover such corresponding amount from such
Lender and the Borrower. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent's demand therefor, the Administrative Agent shall promptly notify the Borrower,
and the Borrower shall immediately pay such corresponding 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 corresponding amount in respect of each day from the date 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 rate per annum equal to the then-applicable rate of interest, calculated in accordance with Section 2.7, for the
Loans. 

        (c)   Nothing
in this Section 2.4 shall be deemed to relieve any Lender from its obligation to fulfill its commitments hereunder or to prejudice any rights that the
Borrower may have against any Lender as a result of any default by such Lender hereunder (it being understood, however, that no Lender shall be responsible for the failure of any other Lender or the
Administrative Agent to fulfill its commitments hereunder). 

        2.5    Initial Maturity Date; Final Maturity Date; Evidence of Debt.    

        (a)   The
Initial Loans will mature on the Initial Maturity Date and, to the extent then unpaid, the maturity of the Initial Loans will automatically be extended to the Final
Maturity Date pursuant to Section 2.1(b). 

        (b)   Any
Extended Loan shall bear interest as described in Section 2.7 from the Initial Maturity Date until such Loan shall be paid in full. 

        (c)   Each
Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to the appropriate lending office of
such Lender resulting from each Loan made by such lending office of such Lender from time to time, including the amounts of principal and interest payable and paid to such lending office of such
Lender from time to time under this Agreement. 

        (d)   The
Administrative Agent shall maintain the Register pursuant to Section 13.6(e), and a subaccount for each Lender, in which Register and subaccounts (taken
together) shall be recorded (i) the amount and currency of each Loan made hereunder and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable (including, without limitation, any PIK Interest Amount and any interest payable thereon) from the Borrower to each Lender and (iii) the amount of any sum
received by the Administrative Agent hereunder from the Borrower and each Lender's share thereof. 

        (e)   The
entries made in the Register and accounts and subaccounts maintained pursuant to paragraphs (c) and (d) of this Section 2.5 shall, to the extent
permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided,  however,
that the failure of any Lender or the Administrative Agent to maintain such account, such Register or such subaccount, as applicable, or any
error therein, shall not in any manner affect the obligations of the Borrower hereunder, including obligations to repay (with applicable interest) the Loans made to the Borrower by such Lender in
accordance with the terms of this Agreement. 

29

 

        2.6    Pro Rata Borrowing.    

        The
Borrowing of Loans under this Agreement shall be granted by the Lenders pro rata on the basis of their Commitments. It is understood that no Lender shall be responsible for any
default by any other Lender in its obligation to make a Loan hereunder and that each Lender shall be obligated to make the Loan provided to be made by it hereunder, regardless of the failure of any
other Lender to fulfil its commitments hereunder. 

        2.7    Interest.    

        (a)   Except
as provided in paragraph (b) below, the unpaid principal amount of each Initial Loan shall bear interest from the Funding Date until maturity (whether by
acceleration or otherwise) at a rate per annum equal to the Applicable Margin plus (i) in the case of a Dollar Loan, the Adjusted LIBOR and
(ii) in the case of a Foreign Currency Loan, the Adjusted EURIBOR, in each case, in effect from time to time. 

        (b)   If
any event set forth in Section 2.9 shall have occurred, then (i) within 15 days after any notice given to the Borrower by the affected Lender or
Lenders in accordance with Section 2.9, the Agents and the Borrower shall enter into negotiations in good faith with a view to agreeing to an alternative interest rate acceptable to the
Borrower to make, fund or maintain affected Loans and (ii) if, at the expiration of 20 days from the giving of such notice by the Agents, the Agents and the Borrower shall not have
reached an agreement, such Loans will bear interest at a rate per annum specified by each such Lender to represent its cost of funds therefor plus the
Applicable Margin. 

        (c)   The
unpaid principal amount of each Extended Loan shall bear interest for the period from and including the Initial Maturity Date to, but excluding, the maturity thereof
(whether by acceleration or otherwise) at a rate equal to 14.5% per annum. 

        (d)   If
all or a portion of (i) the principal amount of any Loan or (ii) any interest payable thereon shall not be paid when due (whether at the stated
maturity, by acceleration or otherwise), such overdue amount shall bear interest at a rate per annum that is (x) in the case of overdue principal, the then applicable interest rate on the Loans  plus 2% or (y) in the case of any overdue interest, to the extent permitted by applicable law, the then applicable interest rate on the Loans  plus 2% from and including the date of such
non-payment to but excluding the date on which such amount is paid in full (after as well as
before judgment). 

        (e)   Interest
on each Loan shall accrue from and including the Funding Date to but excluding the date of any repayment thereof and shall be payable (i) in respect of
each Initial Loan, on the last day of each Interest Period applicable thereto, (ii) in respect of each Extended Loan, quarterly in arrears on the last day of each fiscal quarter of the Borrower
following the Initial Maturity Date and on the Final Maturity Date, (iii) on the date of any prepayment (on the amount prepaid), (iv) at maturity (whether by acceleration or otherwise),
and (v) after maturity, on demand (each such date referred to in clauses (i), (ii), (iii), (iv) and (v) being an "Interest Payment
Date"). It is understood and agreed that, in the event that the Acquisition is not consummated on July 31, 2004 and the Loans are prepaid, interest on each Loan made on
the Funding Date shall accrue from and including the Funding Date to but excluding the date of the repayment thereof in accordance with this Agreement and such interest shall be payable on the date of
such prepayment. 

        (f)    The
interest rate borne by the Initial Loans shall not exceed 12.0% per annum (excluding reserve asset costs) nor be less than 9.0% per annum, in each case,  plus any default interest pursuant to
Section 2.7(d). In respect of each Extended Loan, in lieu of paying the PIK Interest Amount in cash, the
Borrower may elect to add such PIK Interest Amount to the principal amount of such Extended Loan. 

        (g)   All
computations of interest hereunder shall be made in accordance with Section 5.5. 

30

 

        (h)   The
Administrative Agent, upon determining the interest rate for the Borrowing, shall promptly notify the Borrower and the Lenders thereof and of any PIK Interest
Amount. Each such determination shall, absent clearly demonstrable error, be final and conclusive and binding on all parties hereto. 

        2.8    Interest Periods.    

        The
Interest Period applicable to the Loans shall have a duration of one, two or three months, at the option of the Borrower, provided
that an Interest Period may be for a period less than one month if agreed upon by the Borrower and the Administrative Agent. Notwithstanding anything to the contrary contained above: 

        (a)   the
initial Interest Period for the Borrowing shall commence on the Funding Date and each Interest Period occurring thereafter in respect of such Borrowing shall
commence on the day on which the next preceding Interest Period expires; 

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

        (c)   if
any Interest Period would otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day,  provided that if any Interest Period would
otherwise expire on a day that is not a Business Day but is a day of the month after which no further
Business Day occurs in such month, such Interest Period shall expire on the next preceding Business Day; and 

31

   
        (d)   the last Interest Period applicable to Initial Loans shall end on the Initial Maturity Date and the last Interest Period applicable to Extended Loans shall end on the
Final Maturity Date. 

        2.9    Increased Costs, Illegality, etc.    

        (a)   In
the event that (x) in the case of clauses (i)(x) and (y) below, the Administrative Agent or (y) in the case of clauses (ii) and
(iii) below, any Lender shall have reasonably determined (which determination shall, absent clearly demonstrable error, be final and conclusive and binding upon all parties hereto) that: 

        (i)    on
any date for determining the Adjusted LIBOR or Adjusted EURIBOR for any Interest Period (x) deposits in the principal amounts of the Loans are not generally
available in the relevant market or (y) by reason of any changes arising on or after the date hereof affecting the interbank eurodollar market, adequate and fair means do not exist for
ascertaining the applicable interest rate on the basis provided for in the definition of Adjusted LIBOR or Adjusted EURIBOR; or 

        (ii)   at
any time, such Lender shall incur increased costs or reductions in the amounts received or receivable hereunder with respect to any Loans (other than any such
increase or reduction attributable to taxes) because of (x) any change since the date hereof in any applicable law, governmental rule, regulation, guideline or order (or in the interpretation
or administration thereof and including the introduction of any new law or governmental rule, regulation, guideline or order), such as, for example, but not limited to, a change in official reserve
requirements, and/or (y) other circumstances affecting the interbank eurodollar market or the position of such Lender in such market; or 

        (iii)  at
any time, the making or continuance of any Loan has become unlawful by compliance by such Lender in good faith with any law, governmental rule, regulation,
guideline or order (or would conflict with any such governmental rule, regulation, guideline or order not having the force of law even though the failure to comply therewith would not be unlawful), or
has become impracticable as a result of a contingency occurring after the date hereof that materially and adversely affects the interbank eurodollar market; 

then,
and in any such event, such Lender (or the Administrative Agent, in the case of clauses (i)(x) and (y) above) shall within a reasonable time thereafter give notice (if by telephone
confirmed in writing) to the Borrower and to the Administrative Agent of such determination (which notice the Administrative
Agent shall promptly transmit to each of the other Lenders) and in the case of each of clauses (i) and (ii) above, enter into negotiations with the Borrower pursuant to
Section 2.7(b). 

        (b)   If,
after the date hereof, the adoption of any applicable law, rule or regulation regarding capital adequacy, or any change therein, or any change in the interpretation
or administration thereof by any governmental authority, the National Association of Insurance Commissioners, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by a Lender or its parent with any request or directive made or adopted after the date hereof regarding capital adequacy (whether or not having the force of law) of any such
authority, association, central bank or comparable agency, has or would have the effect of reducing the rate of return on such Lender's or its parent's capital or assets as a consequence of such
Lender's commitments or obligations hereunder to a level below that which such Lender or its parent could have achieved but for such adoption, effectiveness, change or compliance (taking into
consideration such Lender's or its parent's policies with respect to capital adequacy), then from time to time, promptly after demand by such Lender (with a copy to the Administrative Agent), the
Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or its parent for such reduction, it being understood and agreed, however, that a Lender shall not be
entitled to such compensation as a result of such Lender's compliance with, or pursuant to any request or directive to comply with, any such law, rule or regulation as in effect on the date hereof.
Each Lender, upon determining in good faith that 

32

 

any
additional amounts will be payable pursuant to this Section 2.9(b), will give prompt written notice thereof to the Borrower, which notice shall set forth in reasonable detail the basis of
the calculation of such additional amounts, although the failure to give any such notice shall not release or diminish any of the Borrower's obligations to pay additional amounts pursuant to this
Section 2.9(b) upon receipt of such notice. 

        2.10    Compensation.    

        If
(a) any payment of principal of any Loan is made by the Borrower to or for the account of a Lender other than on the last day of the Interest Period for such Loan as a result
of a payment pursuant to Section 2.5, 2.9, 5.1, 5.2 or 13.7, as a result of acceleration of the maturity of the Loans pursuant to Section 11 or for any other reason, (b) the
Borrowing is not made as a result of a withdrawn Notice of Borrowing or (c) any prepayment of principal of any Loan is not made as a result of a withdrawn notice of prepayment pursuant to
Section 5.1 or 5.2, the Borrower shall, after receipt of a written request by such Lender (which request shall set forth in reasonable detail the basis for requesting such amount), pay to the
Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses that such Lender may reasonably incur as a result of
such payment, failure to borrow, failure to continue or failure to prepay, including, without limitation, any loss, cost or expense (excluding loss of anticipated profits) actually incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Loan. 

        2.11    Change of Lending Office.    

        Each
Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 2.9(a)(ii), 2.9(a)(iii), 2.9(b) or 5.4 with respect to such Lender, it will, if
requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office for any Loans affected by such event,  provided that such
designation is made on such terms that such Lender and its lending office suffer no economic, legal or regulatory disadvantage, with
the object of avoiding the consequence of the event giving rise to the operation of any such Section. Nothing in this Section 2.11 shall affect or postpone any of the obligations of the
Borrower or the right of any Lender provided in Section 2.9 or 5.4. 

        2.12    Notice of Certain Costs.    

        Notwithstanding
anything in this Agreement to the contrary, to the extent any notice required by Section 2.9, 2.10 or 5.4 is given by any Lender more than 180 days after
such Lender has knowledge (or should have had knowledge) of the occurrence of the event giving rise to the additional cost, reduction in amounts, loss, tax or other additional amounts described in
such Sections, such Lender shall not be entitled to compensation under Section 2.9, 2.10 or 5.4, as the case may be, for any such amounts incurred or accruing prior to the giving of such notice
to the Borrower. 

        SECTION
3.    Subordination.    

        3.1    Agreement To Subordinate.    

        The
Borrower agrees, and each Lender agrees, that the Bridge Obligations of the Borrower are subordinated in right of payment, to the extent and in the manner provided in this
Section 3, to the prior payment in full in cash or Cash Equivalents (other than those cash equivalents referred to in clause (iii)(B) of the definition of "Cash
Equivalents") of all Senior Indebtedness of the Borrower, whether outstanding on the date of this Agreement or incurred thereafter, and that the subordination is for the
benefit of and enforceable by the holders of such Senior Indebtedness. The Bridge Obligations of the Borrower shall in all respects rank pari passu with all other Senior Subordinated Indebtedness of
the Borrower and shall rank senior to all existing and future Subordinated Indebtedness of the Borrower; and only Indebtedness of the Borrower that is Senior Indebtedness of the Borrower shall 

33

 

rank
senior to the Bridge Obligations of the Borrower in accordance with the provisions set forth herein. All provisions of this Section 3 shall be subject to Section 3.12. 

        3.2    Liquidation, Dissolution, Bankruptcy.    

        Upon
any distribution to creditors of the Borrower in a liquidation or dissolution of the Borrower or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Borrower or its property, an assignment for the benefit of creditors or any marshalling of the Borrower's assets and liabilities, the holders of Senior Indebtedness shall be entitled
to receive payment in full in cash or Cash Equivalents of such Senior Indebtedness and all outstanding Letter of Credit Obligations thereunder shall be fully cash collateralized before the Lenders
will be entitled to receive any payment with respect to the Bridge Obligations, and until all Senior Indebtedness is paid in full in cash or Cash Equivalents (other than those cash equivalents
referred to in clause (iii)(B) of the definition of "Cash Equivalents"), any distribution to which the Lenders would be entitled shall be made to
the holders of Senior Indebtedness (except that Lenders may receive shares of stock and any debt securities that are subordinated at least to the same extent as the Bridge Obligations to
(a) Senior Indebtedness and (b) any securities issued in exchange for Senior Indebtedness). 

        3.3    Default on Senior Indebtedness.    

        The
Borrower shall not make any payment upon or in respect of the Bridge Obligations (except that Lenders may receive shares of stock and any debt securities that are subordinated at
least to the same extent as the Bridge Obligations to (a) Senior Indebtedness and (b) any securities issued in exchange for Senior Indebtedness) if (i) a default in the payment of
the principal of, premium, if any, or interest on, or of unreimbursed amounts under drawn letters of credit or in respect of bankers' acceptances or fees relating to letters of credit or bankers'
acceptances constituting Designated Senior Indebtedness occurs and is continuing beyond any applicable period of grace in the indenture, agreement or other document governing such Designated Senior
Indebtedness (a "payment default") or (ii) any other default occurs and is continuing with respect to Designated Senior Indebtedness that permits
holders of the Designated Senior Indebtedness as to which such default relates to accelerate its maturity without further notice (except such notice as may be required to effect such acceleration) or
the expiration of any applicable grace periods (a "non-payment default") and the Administrative Agent receives a notice of such default (a
"Payment Blockage Notice") from a representative of holders of any such Designated Senior Indebtedness. Payments on the Bridge Obligations, including
any missed payments, may and shall be resumed (a) in the case of a payment default, upon the date on which such default is cured or waived or shall have ceased to exist or such Designated
Senior Indebtedness shall have been discharged or paid in full in cash or Cash Equivalents (other than those cash equivalents referred to in clause (iii)(B) of the definition of
"Cash Equivalents") and all outstanding Letter of Credit Obligations thereunder shall have been fully cash collateralized and (b) in case of a
nonpayment default, the earlier of (x) the date on which such nonpayment default is cured or waived or shall have ceased to exist, (y) 179 days after the date on which the
applicable Payment Blockage Notice is received (each such period, the "Payment Blockage Period") or (z) the date such Payment Blockage Period
shall be terminated by written notice to the Administrative Agent from the requisite holders of such Designated Senior Indebtedness necessary to terminate such period or from their Representative. No
new Payment Blockage Period may be commenced unless and until 365 days have elapsed since the effectiveness of the immediately preceding Payment Blockage Notice. However, if any Payment
Blockage Notice within such 365-day period is given by or on behalf of any holders of Designated Senior Indebtedness (other than the administrative agent under the Senior Secured Credit
Facilities), the administrative agent under the Senior Secured Credit Facilities may give another Payment Blockage Notice within such period. In no event, however, shall the total number of days
during which any Payment Blockage Period or Periods is in effect exceed 179 days in the aggregate during any 365 consecutive day period. No nonpayment default that existed or was continuing on
the date of delivery of any Payment Blockage Notice to the Administrative Agent shall be, or be made, the basis for a 

34

 

subsequent
Payment Blockage Notice unless such default shall have been cured or waived for a period of not less than 90 days. 

        3.4    Acceleration of Payment of Loans.    

        If
payment of the Loans is accelerated because of an Event of Default, the Borrower or the Administrative Agent shall promptly notify the holders of Designated Senior Indebtedness (or
their Representative) of the acceleration. If any Designated Senior Indebtedness is outstanding, the Borrower shall not pay the Loans or other Bridge Obligations until five Business Days after such
holders or the Representative of the Designated Senior Indebtedness receive notice of such
acceleration and, thereafter, shall pay the Loans or other Bridge Obligations only if this Section 3 otherwise permits payment at that time. 

        3.5    When Distribution Must Be Paid Over.    

        If
a distribution is made to Lenders that because of this Section 3 should not have been made to them, the Lenders who receive the distribution shall hold it in trust for holders
of Senior Indebtedness of the Borrower and pay it over to them as their interests may appear. 

        3.6    Subrogation.    

        After
all Senior Indebtedness of the Borrower is paid in full and until the Bridge Obligations of the Borrower are paid in full, Lenders shall be subrogated to the rights of holders of
such Senior Indebtedness to receive distributions applicable to Senior Indebtedness. A distribution made under this Section 3 to holders of such Senior Indebtedness which otherwise would have
been made to Lenders is not, as between the Borrower and Lenders, a payment by the Borrower on such Senior Indebtedness. 

        3.7    Relative Rights.    

        This
Section 3 defines the relative rights of Lenders and holders of Senior Indebtedness of the Borrower. Nothing in this Agreement shall: 

	(1)
	impair,
as between the Borrower and Lenders, the obligation of the Borrower, which is absolute and unconditional, to pay principal of, and interest on, the Loans and the other Bridge
Obligations of the Borrower in accordance with their terms; or

	(2)
	prevent
the Administrative Agent or any Lender from exercising its available remedies upon a Default, subject to the rights of holders of Senior Indebtedness of the Borrower to
receive distributions otherwise payable to Lenders. 

        3.8    Subordination May Not Be Impaired by the Borrower.    

        No
right of any holder of Senior Indebtedness of the Borrower to enforce the subordination of the Bridge Obligations shall be impaired by any act or failure to act by the Borrower or by
its failure to comply with this Agreement. 

        3.9    Rights of Agents.    

        Notwithstanding
Section 3.3, the Administrative Agent (but not any Credit Party) may continue to make payments on the Bridge Obligations and shall not be charged with knowledge of
the existence of facts that would prohibit the making of any such payments unless, not less than two Business Days prior to the date of such payment, the Administrative Agent receives notice
satisfactory to it that payments may not be made under this Section 3. The Borrower, a Representative or a holder of Senior Indebtedness of the Borrower may give the notice;  provided, however, that, if an issue of Senior Indebtedness of the Borrower has a Representative, only
the Representative may give the notice. 

        The
Agents in their individual or any other capacities may hold Senior Indebtedness of the Borrower with the same rights they would have if they were not Agents. The Agents shall each be 

35

 

entitled
to all the rights set forth in this Section 3 with respect to any Senior Indebtedness of the Borrower which may at any time be held by them, to the same extent as any other holder of
such Senior Indebtedness, and nothing in Section 12 shall deprive any Agent of any of their rights as such holder. Nothing in this Section 3 shall apply to claims of, or payments to, any
Agent under or pursuant to Section 12.7. 

        3.10    Distribution or Notice to Representative.    

        Whenever
a distribution is to be made or a notice given to holders of Senior Indebtedness of the Borrower, the distribution may be made and the notice may be given to their
Representative (if any). 

        3.11    Section 3 Not To Prevent Events of Default or Limit Right To Accelerate.    

        The
failure to make a payment of the Bridge Obligations by reason of any provision in this Section 3 shall not be construed as preventing the occurrence of a Default. Nothing in
this Section 3 shall have any effect on the right of the Lenders or the Administrative Agent to accelerate the maturity of the Loans or other Bridge Obligations. 

        3.12    Administrative Agent Entitled To Rely.    

        Upon
any payment or distribution pursuant to this Section 3, the Administrative Agent and the Lenders shall be entitled to rely (i) upon any order or decree of a court of
competent jurisdiction in which any proceedings of the nature referred to in Section 3.2 are pending, (ii) upon a certificate of the liquidating Administrative Agent or agent or other
Person making such payment or distribution to the Administrative Agent or to the Lenders or (iii) upon the Representatives for the holders of Senior Indebtedness of the Borrower for the purpose
of ascertaining the Persons entitled to participate in such payment or distribution, the holders of such Senior Indebtedness and other Indebtedness of the Borrower, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Section 3. In the event that the Administrative Agent determines, in good faith, that
evidence is required with respect to the right of any Person as a holder of Senior Indebtedness of the Borrower to participate in any payment or distribution pursuant to this Section 3, the
Administrative Agent may request such Person to furnish evidence to the reasonable satisfaction of the Administrative Agent as to the amount of such Senior Indebtedness held by such Person, the extent
to which such Person is entitled to participate in such payment or distribution and other facts pertinent to the rights of such Person under this Section 3, and, if such evidence is not
furnished, the Administrative Agent may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment. The provisions of Section 12
shall be applicable to all actions or omissions of actions by the Administrative Agent pursuant to this Section 3. 

        3.13    Administrative Agent To Effectuate Subordination.    

        Each
Lender authorizes and directs the Administrative Agent on its behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination between
the Lenders and the holders of Senior Indebtedness of the Borrower as provided in this Section 3 and appoints the Administrative Agent as attorney-in-fact for any and
all such purposes. 

        3.14    Administrative Agent Not Fiduciary for Holders of Senior Indebtedness.    

        The
Administrative Agent shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the Borrower and shall not be liable to any such holders if it shall
mistakenly pay over or distribute to the Lenders or the Borrower or any other Person, money or assets to which any holders of Senior Indebtedness of the Borrower shall be entitled by virtue of this
Section 3 or otherwise; provided that this Section 3.14 shall not impair the rights of holders of Senior Indebtedness under this
Section 3 as against the Lenders and the Borrower. 

36

 

        3.15    Reliance by Holders of Senior Indebtedness on Subordination Provisions.    

        Each
Lender acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration to each holder of any Senior Indebtedness
of the Borrower, whether such Senior Indebtedness was created or acquired before or after the Funding Date, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness and such
holder of such Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold, or in continuing to hold, such Senior Indebtedness. 

        3.16    Agents' Compensation Not Prejudiced.    

        Nothing
in this Section 3 shall apply to amounts due to the Agents pursuant to other sections of this Agreement. 

        SECTION
4.    Fees; Voluntary Reduction of Initial Loan Commitments.    

        4.1    Fees.    

        The
Borrower agrees to pay to the Lenders (a) without duplication of any conversion fee described in the Fee Letter, a conversion fee in an aggregate amount equal to 2.5% of the
amount of the Loans outstanding on the Initial Maturity Date (as determined immediately prior to the conversion of such Loans to Extended Loans), earned and payable upon the Initial Maturity Date pro
rata among the Lenders in accordance with the Dollar Equivalent of the respective principal amounts of their outstanding Loans and (b) any other fees in the amounts and on the dates previously
agreed to in writing between the Borrower and the Lead Arrangers. 

        4.2    Voluntary Reduction of Initial Loan Commitments.    

        Upon
at least one Business Day's prior written notice (or telephonic notice promptly confirmed in writing) to the Administrative Agent at the Administrative Agent's Office (which notice
the Administrative Agent shall promptly transmit to each of the Lenders), the Borrower shall have the right, without premium or penalty, on any day, permanently to terminate or reduce the Commitments
in whole or in part, provided that (a) any such reduction shall apply proportionately and permanently to reduce the Dollar Equivalent of the
Commitments of each of the Lenders, (b) any partial reduction pursuant to this Section 4.2 shall be in the amount of at least the Dollar Equivalent of $1,000,000 and (c) any such
reduction shall not reduce the amount of the commitment fee payable with respect to the initial amount of Total Commitments as previously agreed to in writing. 

        SECTION
5.    Payments.    

        5.1    Voluntary Prepayments.    

        The
Borrower shall have the right to prepay the Loans in whole or in part from time to time on the following terms and conditions: (a) the Borrower shall give the Administrative
Agent written notice (or telephonic notice promptly confirmed in writing) stating (i) its intent to make such prepayment and (ii) the amount of such prepayment including the Applicable
Premium, which notice shall be given by the Borrower no later than 10:00 A.M. (Local Time) three Business Days prior to the date of such prepayment; (b) as promptly as practicable after
receipt of such notice, the Administrative Agent shall give notice to each Lender of (i) the pro rata amount payable to such Lender in respect of its Loans (with respect to each Lender, such
Lender's "Prepayment Amount") and (ii) the expected date of such payment; (c) the Prepayment Amounts payable to the Lenders shall be paid
by the Borrower to the Administrative Agent for application pursuant to Section 5.2(b); (d) each partial prepayment of any Loans shall be in an amount that is a multiple of the Dollar
Equivalent of $100,000 and in an aggregate principal amount of at least the Dollar Equivalent of $1,000,000; and (e) any prepayment of Loans pursuant to this Section 5.1 on any day other
than the last day of an Interest Period applicable thereto shall be subject to compliance by the Borrower with the applicable provisions of Section 2.10. 

37

 

        5.2    Mandatory Prepayments.    

        (a)    Sources of Prepayments.    

        On
each occasion that a Prepayment Event occurs (but subject to Section 5.2(d) and, with respect to an Asset Sale Prepayment Event only, Section 5.2(c)), the Borrower
shall, within one Business Day after the occurrence of such Prepayment Event, notify the Administrative Agent of a pending prepayment of the Loans in an aggregate amount equal to (1) in the
case of a Debt Incurrence Prepayment Event, 100% of the Net Proceeds therefrom plus the Applicable Premium, (2) in the case of an Asset Sale
Prepayment Event, subject to Section 10.1(b) and (c), 100% of the Net Proceeds therefrom and (3) in the case of an Equity Issuance Prepayment Event, 100% of the Equity Proceeds therefrom  plus
the Applicable Premium. As promptly as practicable after receipt of such notice, (x) the Administrative Agent shall give notice to each
Lender of (i) the pro-rata amount that would be payable to such Lender in respect of its Loans and (ii) the expected date of such payment and (y) Prepayment Amounts
payable to the Lenders shall be paid by the Borrower to the Administrative Agent for application pursuant to Section 5.2(b). 

        (b)    Application to Loans.    

        Upon
receipt of the amount payable to the Lenders pursuant to Section 5.1, 5.2(a) or 9.15, the Administrative Agent shall distribute such amount in the following order:  First, to the payment of all
expenses due and payable to the Agents under Section 13.5; Second,
to the payment of all expenses due and payable to the Lenders under Section 13.5, ratably among the Lenders in accordance with the Dollar Equivalent of the aggregate amount of such payments
owed to each such Lender; Third, to the payment of interest (other than PIK Interest Amount added to the principal amount of the Extended Loans) then
due and payable on the Loans, ratably among the Lenders in accordance with the Dollar Equivalent of the aggregate amount of interest owed to each such Lenders; and  Fourth, to the payment of the
principal amount of the Loans that is then due and payable, ratably among such Lenders in accordance with the Dollar
Equivalent of the aggregate principal amount owed to each such Lender. 

        (c)    Application to Senior Indebtedness.    

        Notwithstanding
anything to the contrary in this Agreement, the Borrower is not obligated to apply Net Proceeds to the prepayment of the Loans to the extent that such Net Proceeds are
required to be and are applied pursuant to the Senior Secured Credit Facilities in satisfaction of obligations thereunder. 

        (d)    Temporary Investment.    

        Pending
the final application of any Net Proceeds pursuant to this Section 5.2, the Borrower or the applicable Restricted Subsidiary may apply such Net Proceeds temporarily to
reduce Indebtedness outstanding under a revolving credit facility or otherwise invest such Net Proceeds in Cash Equivalents or Investment Grade Securities. 

        5.3    Method and Place of Payment.    

        (a)   Except
as otherwise specifically provided herein, all payments under this Agreement shall be made, without set-off, counterclaim or deduction of any kind, to
the Administrative Agent for the ratable account of the Lenders entitled thereto not later than 12:00 noon (Local Time), on the date when due and shall be made (i) in the case of amounts
payable in Dollars, in immediately available funds at the Administrative Agent's Office and (ii) in the case of amounts payable in Euro, in immediately available funds at the Administrative
Agent's Office or at such other office as the Administrative Agent shall specify for such purpose by notice to the Borrower, it being understood that written or telecopy notice by the Borrower to the
Administrative Agent to make a payment from the funds in the Borrower's account at the Administrative Agent's Office shall constitute the making of such payment to the extent of such funds held in
such account. All payments under each Credit 

38

 

Document
(whether of principal, interest or otherwise) shall be made in (i) in the case of the principal of an interest on each Loan, in the currency in which such Loan is denominated,
(ii) in the case of any indemnification or expense reimbursement payment, in Dollars or Euro, as requested by the Person entitled to receive such payment and (iii) in all other cases, in
Dollars, in each case, except as otherwise expressly provided herein. The Administrative Agent will thereafter cause to be distributed on the same day (if payment was actually received by the
Administrative Agent prior to 2:00 P.M. (Local Time) on such day) like funds relating to the payment of principal or interest or Fees ratably to the Lenders entitled thereto. 

        (b)   Any
payments under this Agreement that are made later than 2:00 p.m. (Local Time), shall be deemed to have been made on the next succeeding Business Day. Whenever
any payment to be made hereunder shall be stated to be due on a day that is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day and, with respect to payments
of principal, interest shall be payable during such extension at the applicable rate in effect immediately prior to such extension. 

        5.4    Net Payments; Tax Gross-Up.    

        (a)   All
payments made by the Borrower under this Agreement shall be made free and clear of, and without deduction or withholding for or on account of, any current or future
income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority,
excluding (i) net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the Administrative Agent or any Lender and (ii) any taxes imposed on the
Administrative Agent or any Lender as a result of a current or former connection between the Administrative Agent or such Lender and the jurisdiction of the Governmental Authority imposing such tax or
any political subdivision or taxing authority thereof or therein (other than any such connection arising solely from the Administrative Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement). If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings
("Non-Excluded Taxes") are required to be withheld from any amounts payable to the Administrative Agent or any Lender hereunder, the amounts
so payable to the Administrative Agent or such Lender shall be increased to the extent necessary to yield to the Administrative Agent or such Lender (after payment of all Non-Excluded
Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement; provided, however, that the
Borrower shall not be required to increase any such amounts payable to any Lender that is not created or organized under the laws of the United States of America or a state thereof (a
"Non-U.S. Lender") if such Lender fails to comply with the requirements of paragraph (b) of this Section 5.4. Whenever any
Non-Excluded Taxes are payable by the Borrower, as promptly as possible thereafter, the Borrower shall send to the Administrative Agent for its own account or for the account of such
Lender, as the case may be, a certified copy of an original official receipt (or other evidence acceptable to such Lender, acting reasonably) received by Borrower showing payment thereof. If the
Borrower fails to pay any Non-Excluded Taxes when due to the appropriate taxing authority or fails to remit to the Administrative Agent the required receipts or other required documentary
evidence, the Borrower shall indemnify the Administrative Agent and the Lenders for any incremental taxes, interest, costs or penalties that may become payable by the Administrative Agent or any
Lender as a result of any such failure. The agreements in this Section 5.4(a) shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable
hereunder. 

	(b)
	Each
Non-U.S. Lender shall: 

        (i)    deliver
to the Borrower and the Administrative Agent two copies of either (x) in the case of Non-U.S. Lender claiming exemption from U.S. Federal
withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of "portfolio interest", United States Internal Revenue Service Form W-8BEN, (together
with a certificate representing that such Non-U.S. 

39

 

Lender
is not a bank for purposes of Section 881(c) of the Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Code) of the Borrower and
is not a controlled foreign corporation related to the Borrower (within the meaning of Section 864(d)(4) of the Code)), or (y) Internal Revenue Service Form W-8BEN or
Form W-8ECI, in each case properly completed and duly executed by such Non-U.S. Lender claiming complete exemption from, or reduced rate of, U.S. Federal withholding tax
on payments by the Borrower under this Agreement; 

        (ii)   deliver
to the Borrower and the Administrative Agent two further copies of any such form or certification (or any applicable successor form) on or before the date that
any such form or certification expires or becomes obsolete and after the occurrence of any event requiring a change in the most recent form previously delivered by it to the Borrower; and 

        (iii)  obtain
such extensions of time for filing and complete such forms or certifications as may reasonably be requested in writing by the Borrower or the Administrative
Agent; 

unless,
in any such case, any change in treaty, law or regulation, has occurred prior to the date on which any such delivery would otherwise be required that renders any such form inapplicable or
would prevent such Lender from duly completing and delivering any such form with respect to it and such Lender so advises the Borrower and the Administrative Agent. Each Person that shall become a
Participant pursuant to Section 13.6 or a Lender pursuant to Section 13.6 shall, upon the effectiveness of the related transfer, be required to provide all the forms and statements
required pursuant to this Section 5.4(b), provided that in the case of a Participant such Participant shall furnish all such required forms and
statements to the Lender from which the related participation shall have been purchased. Notwithstanding anything to the contrary, no Lender or Participant shall be required to deliver any form or
certification that it is not legally able to deliver. 

        (c)   The
Borrower shall not be required to indemnify any Non-U.S. Lender, or to pay any additional amounts to any Non-U.S. Lender, in respect of U.S.
Federal withholding tax pursuant to paragraph (a) above to the extent that (i) the obligation to withhold amounts with respect to U.S. Federal withholding tax existed on the date such
Non-U.S. Lender became a party to this Agreement (or, in the case of a Participant that is not an entity organized under the laws of the United States of America or a state thereof (a
"Non-U.S. Participant"), on the date such Participant became a Participant hereunder); provided,
however, that this clause (i) shall not apply to the extent that (x) the indemnity payments or additional amounts any Lender (or Participant) would be entitled to
receive (without regard to this clause (i)) do not exceed the indemnity payment or additional amounts that the person making the assignment, participation or transfer to such Lender (or
Participant) would have been entitled to receive in the absence of such assignment, participation or transfer, or (y) such assignment, participation or transfer had been requested by the
Borrower, (ii) the obligation to pay such additional amounts would not have arisen but for a failure by such Non-U.S. Lender or Non-U.S. Participant to comply with the
provisions of paragraph (b) above or (iii) any of the representations or certifications made by a Non-U.S. Lender or Non-U.S. Participant pursuant to
paragraph (b) above are incorrect at the time a payment hereunder is made, other than by reason of any change in treaty, law or regulation having effect after the date such representations or
certifications were made. 

        (d)   If
the Borrower determines in good faith that a reasonable basis exists for contesting any taxes for which indemnification has been demanded hereunder, the relevant
Lender or the Administrative Agent, as applicable, shall cooperate with the Borrower in challenging such taxes at the Borrower's expense if so requested by the Borrower. If any Lender or the
Administrative Agent, as applicable, receives a refund of a tax for which a payment has been made by the Borrower pursuant to this Agreement, which refund in the good faith judgment of such Lender or
Administrative Agent, as the case may be, is attributable to such payment made by the Borrower, then the Lender or the Administrative Agent, as the case may be, shall reimburse Borrower for such
amount (together with any interest received thereon) as the Lender or Administrative Agent, as the case may be, determines 

40

 

to
be the proportion of the refund as will leave it, after such reimbursement, in no better or worse position than it would have been in if the payment had not been required. A Lender or
Administrative Agent shall claim any refund that it determines is available to it, unless it concludes in its reasonable discretion that it would be adversely affected by making such a claim. Neither
any Lender nor the Administrative Agent shall be obliged to disclose any information regarding its tax affairs or computations to the Borrower in connection with this paragraph (d) or any other
provision of this Section 5.4. 

        (e)   Each
Lender represents and agrees that, on the date hereof and at all times during the term of this Agreement, it is not and will not be a conduit entity participating
in a conduit financing arrangement (as defined in Section 7701(1) of the Code and the regulations thereunder) with respect to the Borrowings hereunder unless the Borrower has consented to such
arrangement prior thereto. 

        5.5    Computations of Interest and Fees.    

	(a)
	Interest
shall be calculated on the basis of a 360-day year for the actual days elapsed. 

41

   
        (b)   Fees shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual days elapsed. 

        5.6    Pro Rata Treatment.    

        (a)   Except
as required under Section 2.9 or Section 2.10, each Borrowing, each payment or prepayment of principal of the Borrowing or any Loan, each payment of
interest on the Loans and each reduction of the Commitments shall be allocated pro rata among the Lenders in accordance with the Dollar Equivalent of their respective applicable Commitments (or, if
such Commitments shall have expired or been terminated, in accordance with the Dollar Equivalent of the respective principal amounts of their outstanding Loans). Each Lender agrees that in computing
such Lender's portion of the Borrowing to be made hereunder, the Administrative Agent may, in its discretion, round each Lender's percentage of such Borrowing to the next higher or lower whole Dollar
or Euro. 

        (b)   Whenever
any payment received by the Administrative Agent under this Agreement or any Note or any Credit Document is insufficient to pay in full all amounts then due and
payable to the Administrative Agent and the Lenders under this Agreement: 

        (i)    if
the Administrative Agent has not received a Payment Sharing Notice (or, if the Administrative Agent has received a Payment Sharing Notice but the Event of Default
specified in such Payment Sharing Notice has been cured or waived in accordance with the provisions of this Agreement), subject to Section 3, such payment shall be distributed by the
Administrative Agent and applied by the Administrative Agent and the Lenders in the following order: First, to the payment of all expenses due and
payable to the Agents under Section 13.5; Second, to the payment of all expenses due and payable to the Lenders under Section 13.5,
ratably among the Lenders in accordance with the Dollar Equivalent of the aggregate amount of such payments owed to each such Lender; Third, to the
payment of interest then due and payable on the Loans ratably among the Lenders in accordance with the Dollar Equivalent of the aggregate amount of interest owed to each such Lender; and  Fourth, to the
payment of the principal amount of the Loans that is then due and payable, ratably among the Lenders in accordance with the Dollar
Equivalent of the aggregate principal amount owed to each such Lender; or 

        (ii)   if
the Administrative Agent has received a Payment Sharing Notice that remains in effect, all payments received by the Administrative Agent under this Agreement or any
Note shall, subject to Section 3, be distributed by the Administrative Agent and applied by the Administrative Agent and the Lenders in the following order:  First, to the payment of all expenses
due and payable to the Agents under Section 13.5; Second,
to the payment of all expenses due and payable to the Lenders under
Section 13.5, ratably among the Lenders in accordance with the Dollar Equivalent of the aggregate amount of such payments owed to each such Lender;  Third, to the payment of the interest (other than
PIK Interest Amount added to the principal amount of the Extended Loans) accrued on all Loans,
regardless of whether any such amount is then due and payable, ratably among the Lenders in accordance with the Dollar Equivalent of the aggregate accrued interest  plus the Dollar Equivalent of the
aggregate principal amount owed to such Lender; and Fourth, to the
payment of the principal amount of all Loans, regardless of whether any such amount is then due and payable, ratably among the Lenders in accordance with the Dollar Equivalent of the aggregate
principal amount owed to such Lender. 

        5.7    Use of Proceeds.    

        The
proceeds of the Loans shall be available (and the Borrower agrees that it shall use such proceeds) solely to finance a portion of the purchase price under the Acquisition Agreement,
to refinance certain existing indebtedness of the Borrower and the Target Business and to pay fees, costs and expenses related to the Transactions. 

42

 

        SECTION
6.    Conditions Precedent to Borrowing of Initial Loans.    

        Subject
to Section 6.2, the Borrowing under this Agreement is subject to the satisfaction of the following conditions precedent: 

        6.1    Credit Documents.    

        The
Administrative Agent shall have received (a) this Agreement, executed and delivered by a duly authorized officer of each of the Borrower, the Agents and each Lender,
(b) the Guarantee Agreements, executed and delivered by a duly authorized officer of each Guarantor and (c) to the extent requested by any Lender, a Note payable to such Lender, executed
and delivered by a duly authorized officer of the Borrower. 

        6.2    Certain Funding Basis.    

        Once
each of the conditions precedent set forth in Section 6.1(a), 6.6 and 6.7 shall have been satisfied and if the condition precedent set forth Section 6.8 shall be
satisfied contemporaneously with the initial Borrowings hereunder, the Lenders shall only be entitled to (a) decline to make available any Loan or (b) exercise any right to cancel or
terminate any Commitment if any of the following events, circumstances or conditions shall be present: 

        (i)    any
failure of any condition precedent set forth in Section 6.1(b), 6.4, 6.11, 6.12, 6.13 or 6.14 to be satisfied to the extent that such condition relates
directly to (x) the Borrower or (y) any Restricted Subsidiary that is a member of the Rockwood Group that is legally able to satisfy such condition,  provided that, in the case of this
clause (y), each Restricted Subsidiary that is a member of the Rockwood Group shall have used reasonable
efforts to avoid any such legal prohibition; 

        (ii)   any
default of any covenant in the first sentence of Section 9.16; 

        (iii)  any
event described in Section 11(e) or (f) shall occur with respect to the Borrower; 

        (iv)  the
Borrower shall fail to pay any amounts due and payable under this Agreement, any other Credit Document or the Fee Letter; 

        (v)   any
Credit Document or any material provision thereof shall cease to be in full force and effect with respect to the Borrower or any Restricted Subsidiary that is a
member of the Rockwood Group (other than (x) pursuant to the terms hereof or thereof, (y) as a result of acts or omissions of the Administrative Agent or any Lender or (z) as a
result of any legal prohibition affecting any Restricted Subsidiary that is a member of the Rockwood Group; provided that, in the case of this
clause (z), each Restricted Subsidiary that is a member of the Rockwood Group shall have used reasonable efforts to avoid any such legal prohibition) or any of the Borrower or any Restricted
Subsidiary that is a member of the Rockwood Group shall deny or disaffirm in writing its obligations under any Credit Document (other than pursuant to the terms hereof or thereof); 

        (vi)  any
breach by the Borrower (with respect to itself) or by any Restricted Subsidiary that is a member of the Rockwood Group (other than, in the case of any Restricted
Subsidiary that is a member of the Rockwood Group, as a result of any legal prohibition affecting such Restricted Subsidiary; provided that such
Restricted Subsidiary shall have used reasonable efforts to avoid any legal prohibition) of any covenant in Section 10.2, 10.3 or 10.4; or 

        (vii) any
breach by the Borrower (with respect to itself) or by any Restricted Subsidiary that is a member of the Rockwood Group (other than, in the case of any Restricted
Subsidiary that is a member of the Rockwood Group, as a result of any legal prohibition affecting such Restricted Subsidiary; provided that, such
Restricted Subsidiary shall have used reasonable efforts to avoid any legal prohibition) of any representation or warranty in Section 8.1 or 8.2. 

43

 

Further,
the Lenders shall not be entitled to exercise any right of set-off against the proceeds of the Loans. Notwithstanding the foregoing, if any condition precedent to the initial
Borrowing set forth in Section 6 of this Agreement is not satisfied but as a result of the foregoing provisions of this Section 6.2 the Lenders are nonetheless required to make Loans on
the Funding Date, there shall be, subject to Section 7, an Event of Default under Section 11 on the day following the Closing Date and all rights and remedies shall be available to the
Lenders to the extent they would have been available but for this Section 6.2 (even though they were not available prior to such date). 

        6.3    [Intentionally Omitted.]    

        6.4    Legal Opinions.    

        The
Administrative Agent shall have received, with a counterpart for each Lender, the executed legal opinion of (a) Thomas J. Riordan, General Counsel to the Borrower,
substantially in the form of Exhibit D-1 and (b) Simpson Thacher & Bartlett LLP, special New York counsel to the Borrower, substantially in the form of
Exhibit D-2, and the Borrower hereby instructs such counsel to deliver such legal opinions. 

        6.5    No Default.    

        Subject
to Sections 6.2 and 7, after giving effect to the Acquisition and the other Transactions, no Default or Event of Default shall have occurred and be continuing. 

        6.6    Receipt of Senior Term Loans.    

        Gross
proceeds of not less than $985,000,000 and €389,741,010.81 from borrowings of the Senior Term Loans shall have been deposited on the Funding Date in the RSGI Dollar
Debt Escrow Account, the RSGI Euro Debt Escrow Account and the UK Borrower Debt Escrow Account,
respectively, to be held by the Financing Escrow Agent pursuant to the terms of the Financing Escrow Agreement. 

        6.7    Equity Contribution and Acquisition; Escrow Agreements.    

        The
Equity Contribution shall have been made and the full amount of the proceeds thereof shall have been deposited on the Funding Date in escrow accounts held by the Financing Escrow
Agent pursuant to the terms of the Financing Escrow Agreement. The full amount of the proceeds of the Dollar Loans shall be deposited on the Funding Date in the RSGI Dollar Debt Escrow Account to be
held by the Financing Escrow Agent pursuant to the terms of the Financing Escrow Agreement and the full amount of the proceeds of the Foreign Currency Loans shall be deposited on the Funding Date in
the RSGI Euro Debt Escrow Account to be held by the Financing Escrow Agent pursuant to the terms of the Financing Escrow Agreement. The Administrative Agent shall have received the Financing Escrow
Agreement, executed and delivered by a duly authorized officer of each Person party thereto, which shall provide, among other things, that as a condition precedent to the release of all funds held in
the RSGI Dollar Debt Escrow Account, the RSGI Euro Debt Escrow Account and the UK Borrower Debt Escrow Account, the Acquisition shall have been, or simultaneously with the initial release of funds
thereunder shall be, consummated in accordance in all material respects with applicable law and the Acquisition Agreement without any amendment or waiver of any provision relating to conditionality to
closing thereunder. The Administrative Agent shall have received the Acquisition Escrow Agreement executed and delivered by a duly authorized officer of each Person party
thereto.

        6.8    Fees.    

        The
fees in the amounts previously agreed in writing by the Agents and the Lenders to be received by the Lenders on the Closing Date and all expenses (including the reasonable fees,
disbursements and other charges of counsel to the Administrative Agent) for which invoices have been presented on or prior to the Funding Date shall, in each case, have been deposited on the Funding
Date in an escrow 

44

 

account
held by the Financing Escrow Agent on behalf and for the account of the Administrative Agent (or its nominee) pursuant to the terms of the Financing Escrow Agreement. 

        6.9    Notice of Borrowing.    

        Prior
to the making of the Initial Loans, the Administrative Agent shall have received a Notice of Borrowing (whether in writing or by telephone) meeting the requirements of
Section 2.3. 

        6.10    Representations and Warranties.    

        Subject
to Sections 6.2 and 7, on the Funding Date the representations and warranties made by any Credit Party contained herein or in the other Credit Documents shall be true and correct
in all material respects (except where such representations and warranties expressly relate to an earlier date, in which case, such representations and warranties shall have been true and correct in
all material respects as of such earlier date), it being understood that no such representation or warranty made on the Funding Date shall be deemed to be not true and correct solely as a result of
the fact that the Funding Date shall not occur simultaneously with the Closing Date. 

        6.11    Closing Certificates.    

        The
Administrative Agent shall have received a certificate of each Credit Party, dated the Funding Date, substantially in the form of Exhibit F, with appropriate insertions,
executed by the President or any Vice President and the Secretary or any Assistant Secretary of such Credit Party, and attaching the documents referred to in Sections 6.12 and 6.13. 

        6.12    Corporate Proceedings of Each Credit Party.    

        The
Administrative Agent shall have received a copy of the resolutions, in form and substance satisfactory to the Administrative Agent, of the Board of Directors (or equivalent governing
body) of each Credit Party (or a duly authorized committee thereof) authorizing (a) the execution, delivery and performance of the Credit Documents (and any agreements relating thereto) to
which it is a party and (b) in the case of the Borrower, the extensions of credit contemplated hereunder. 

        6.13    Corporate Documents.    

        The
Administrative Agent shall have received true and complete copies of the certificate of incorporation and by-laws (or equivalent organizational documents) of each Credit
Party. 

        6.14    Patriot Act.    

        The
Administrative Agent shall have received, at least five Business Days prior to the Funding Date, all documents and other information required by bank regulatory authorities under
applicable "know your
customer" and anti-money laundering rules and regulations, including the Patriot Act and requested by the Administrative Agent at least ten Business Days prior to the Funding Date. 

        SECTION
7.    Clean-Up Period.    

        From
the period from the Funding Date until the date which falls (a) 25 days after the Funding Date, in the case of circumstances affecting the Borrower and any Subsidiary
that is a member of the Rockwood Group or (b) 90 days after the Funding Date, in the case of circumstances affecting any other Subsidiary (such period described in clauses (a) and
(b), the "Clean-Up Period"), a breach of representation or warranty or a breach of covenant or a Default or an Event of Default hereunder
shall not be deemed to be a breach of representation or warranty or a breach of covenant or a Default or an Event of Default hereunder, as the case may be, if and for so long as, during such
Clean-Up 

45

 

Period,
the circumstances giving rise to the relevant breach of representation or warranty or breach of covenant or Default or Event of Default: 

        (i)    are
capable of being cured and, if Holdings, the Borrower or (after the date that is 30 days after the Funding Date) any Restricted Subsidiary is aware of the
relevant circumstances at the time and there exists no legal prohibition affecting any Restricted Subsidiary which would prevent such cure, reasonable efforts are being made to cure the same; 

        (ii)   have
not been procured by or approved by Holdings, the Borrower or (if arising after the date that is 30 days after the Funding Date) any Restricted Subsidiary
unless such Restricted Subsidiary was legally bound to take such action; and 

        (iii)  do
not have a Material Adverse Effect; 

provided that if the relevant circumstances are continuing at the end of the applicable Clean-Up Period there shall be a breach of
representation or warranty, breach of covenant, Default or Event of Default, as the case may be, on such date. 

        SECTION
8.    Representations, Warranties and Agreements.    

        In
order to induce the Lenders to enter into this Agreement and to make the Loans as provided for herein, the Borrower makes the following representations and warranties to, and
agreements with, the Lenders, all of which shall survive the execution and delivery of this Agreement and the making of the Loans: 

        8.1    Corporate Status.    

        Each
of the Borrower and each Material Subsidiary (a) is a duly organized and validly existing corporation or other entity in good standing under the laws of the jurisdiction of
its organization and has the corporate or other organizational power and authority to own its property and assets and to transact the business in which it is engaged and (b) has duly qualified
and is authorized to do business and is in good standing in all jurisdictions where it is required to be so qualified, except where the failure to be so qualified could not reasonably be expected to
result in a Material Adverse Effect. 

        8.2    Corporate Power and Authority.    

        Each
Credit Party has the corporate or other organizational power and authority to execute, deliver and carry out the terms and provisions of the Credit Documents to which it is a party
and has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of the Credit Documents to which it is a party. Each Credit Party has duly
executed and delivered each Credit Document to which it is a party and each such Credit Document constitutes the legal, valid and binding obligation of such Credit Party, enforceable in accordance
with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally and subject to general principles of equity. 

        8.3    No Violation.    

        Neither
the execution, delivery or performance by any Credit Party of the Credit Documents to which it is a party nor compliance with the terms and provisions thereof nor the
consummation of the Acquisition and the other transactions contemplated thereby will (a) contravene any applicable provision of any material law, statute, rule, regulation, order, writ,
injunction or decree of any court or governmental instrumentality, (b) result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result
in the creation or imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of the Borrower or any of the Restricted Subsidiaries pursuant to, the terms of any
material indenture, loan agreement, lease agreement, mortgage, deed of trust, agreement or other material instrument to which the Borrower or any of the Restricted Subsidiaries is a party or by which
it or any of its property or assets is bound or 

46

 

(c) violate
any provision of the certificate of incorporation or By-Laws of the Borrower or any of the Restricted Subsidiaries. 

        8.4    Litigation.    

        There
are no actions, suits or proceedings (including, without limitation, Environmental Claims) pending or, to the knowledge of the Borrower, threatened with respect to any of the
Borrower or any of its Subsidiaries that could reasonably be expected to result in a Material Adverse Effect. 

        8.5    Margin Regulations.    

        Neither
the making of any Loan hereunder nor the use of the proceeds thereof will violate the provisions of Regulation T, U or X of the Board. 

        8.6    Governmental Approvals.    

        No
order, consent, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, any Governmental Authority is required to authorize or
is required in connection with (a) the execution, delivery and performance of any Credit Document or (b) the legality, validity, binding effect or enforceability of any Credit Document,
except any of the foregoing the failure of which to obtain or make could not reasonably be expected to have a Material Adverse Effect. 

        8.7    Investment Company Act.    

        The
Borrower is not an "investment company" within the meaning of the Investment Company Act of 1940, as amended. 

        8.8    True and Complete Disclosure.    

        (a)   None
of the factual information and data (taken as a whole) heretofore or contemporaneously furnished by the Borrower, any of its Subsidiaries or any of their respective
authorized representatives in writing to the Administrative Agent and/or any Lender on or before the Funding Date (including, without limitation, (i) the Confidential Information Memorandum and
(ii) all information contained in the Credit Documents) for purposes of or in connection with this Agreement or any transaction contemplated herein contained any untrue statement or omitted to
state any material fact necessary to make such information and data (taken as a whole) not misleading at such time in light of the circumstances under which such information or data was furnished, it
being understood and agreed that for purposes of this Section 8.8(a), such factual information and data shall not include projections and pro forma financial information. 

        (b)   The
projections and pro forma financial information contained in the information and data referred to in paragraph (a) above were based on good faith estimates
and assumptions believed by such Persons to be reasonable at the time made, it being recognized by the Lenders that such projections as to future events are not to be viewed as facts and that actual
results during the period or periods covered by any such projections may differ from the projected results. 

        8.9    Financial Condition; Financial Statements    

        The
(a) unaudited and audited historical consolidated financial information of the Borrower as set forth in the Confidential Information Memorandum, (b) audited financial
statements of the Target Business for each of the fiscal years ended September 30, 2001 and September 30, 2002, the three months ended December 31, 2002 and the twelve months
ended December 31, 2003 and (c) audited balance sheet of the Borrower and the related audited statements of operations and cash flows (in each case to be provided pursuant to
Section 9.1 (a) and (b)), in each case present or will, when provided, present fairly in all material respects the combined financial position of each of the Borrower and the Target
Business (as applicable) at the respective dates of said information, statements and results of operations for the respective periods covered thereby. The audited financial statements referred to in 

47

 

this
Section 8.9 have been prepared in accordance with GAAP consistently applied except to the extent provided in the notes to said financial statements. There has been no Material Adverse
Change since December 31, 2003, other than solely as a result of changes in general economic conditions. 

        8.10    Tax Returns and Payments.    

        Each
of the Borrower and its Subsidiaries has filed all federal income tax returns and all other material tax returns, domestic and foreign, required to be filed by it and has paid all
material taxes and assessments payable by it that have become due, other than those not yet delinquent or contested in good faith. Each of the Borrower and its Subsidiaries has paid, or have provided
adequate reserves (in the good faith judgment of the management of the Borrower) in accordance with GAAP for the payment of, all material federal, state and foreign income taxes applicable for all
prior fiscal years and for the current fiscal year to the Closing Date. 

        To
the extent that any breach of any of the representations or warranties in this Section 8.10 relates to a period, event or action prior to the Closing Date in respect of which
the Borrower and/or the Restricted Subsidiaries are indemnified to the extent of the breach by the Sellers or the Original Seller pursuant to the Acquisition Agreement or the Original Purchase
Agreement, there shall be deemed to be no breach thereof, provided that such a breach will exist if the Sellers or the Original Seller, as applicable,
do not satisfy their indemnification obligations to the extent and in respect of the circumstances giving rise to such breach within a reasonable time of being notified by the Borrower and/or the
Restricted Subsidiaries of such circumstances (such Persons hereby agreeing to so notify the Sellers or the Original Seller, as applicable, promptly of such circumstances). 

48

   
        8.11    Compliance with ERISA.    

        Each
Plan is in compliance with ERISA, the Code and any applicable Requirement of Law; no Reportable Event has occurred (or is reasonably likely to occur) with respect to any Plan; no
Plan is insolvent or in reorganization (or is reasonably likely to be insolvent or in reorganization), and no written notice of any such insolvency or reorganization has been given to the Borrower,
any Subsidiary or any ERISA Affiliate; no Plan (other than a multiemployer plan) has an accumulated or waived funding deficiency (or is reasonably likely to have such a deficiency); none of the
Borrower, any Subsidiary or any ERISA Affiliate has incurred (or is reasonably likely expected to incur) any liability to or on account of a Plan pursuant to Section 409, 502(i), 502(1), 515,
4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the Code or has been notified in writing that it will incur any liability under any of the foregoing Sections with
respect to any Plan; no proceedings have been instituted (or are reasonably likely to be instituted) to terminate or to reorganize any Plan or to appoint a trustee to administer any Plan, and no
written notice of any such proceedings has been given to the Borrower, any Subsidiary or any ERISA Affiliate; and no lien imposed under the Code or ERISA on the assets of any of the Borrower or any
Subsidiary or any ERISA Affiliate exists (or is reasonably likely to exist) nor has the Borrower, any Subsidiary or any ERISA Affiliate been notified in writing that such a lien will be imposed on the
assets of the Borrower, any Subsidiary or any ERISA Affiliate on account of any Plan, except to the extent that a breach of any of the representations, warranties or agreements in this
Section 8.11 would not result, individually or in the aggregate, in an amount of liability that would be reasonably likely to have a Material Adverse Effect or relates to any matter disclosed
in the financial statements of the Borrower contained in the Confidential Information Memorandum. No Plan (other than a multiemployer plan) has an Unfunded Current Liability that would, individually
or when taken together with any other liabilities referenced in this Section 8.11, be reasonably likely to have a Material Adverse Effect. With respect to Plans that are multiemployer plans (as
defined in Section 3(37) of ERISA), the representations and warranties in this Section 8.11, other than any made with respect to (a) liability under Section 4201 or 4204 of
ERISA or (b) liability for termination or reorganization of such Plans under ERISA, are made to the best knowledge of the Borrower. To the extent that any breach of any of the representations
or warranties in this Section 8.11 relates to a period, event or action prior to the Closing Date in respect of which the Borrower and/or the Restricted Subsidiaries are indemnified to the
extent of the breach by the Sellers or the Original Seller pursuant to the Acquisition Agreement or the Original Purchase Agreement there shall be deemed to be no breach thereof,  provided, that such a
breach will exist if the Sellers or the Original Seller, as applicable, do not satisfy their indemnification obligations to the
extent and in respect of the circumstances giving rise to such breach within a reasonable time of being notified by the Borrower and/or the Restricted Subsidiaries of such circumstances (such Persons
hereby agreeing to so notify the Sellers or the Original Seller, as applicable, promptly of such circumstances). 

        8.12    Subsidiaries.    

        Schedule 8.12
lists each Subsidiary of the Borrower (and the direct and indirect ownership interest of the Borrower therein), in each case existing on the Funding Date (after
giving effect to the
Acquisition). To the knowledge of the Borrower, after due enquiry, each Material Subsidiary as of the Funding Date (after giving effect to the Acquisition) has been so designated on
Schedule 8.12. 

        8.13    Patents, etc.    

        The
Borrower and each of the Restricted Subsidiaries have obtained all patents, trademarks, servicemarks, trade names, copyrights, licenses and other rights, free from burdensome
restrictions, that are necessary for the operation of their respective businesses as currently conducted and as proposed to be conducted, except where the failure to obtain any such rights could not
reasonably be expected to have a Material Adverse Effect. 

49

 

        8.14    Environmental Laws.    

        (a)   Except
as could not reasonably be expected to have a Material Adverse Effect: (i) each of the Borrower and its Subsidiaries are in compliance with all
Environmental Laws in all jurisdictions in which the Borrower and each of its Subsidiaries are currently doing business (including, without limitation, having obtained all material permits required
under Environmental Laws); (ii) the Borrower will comply and cause each of its Subsidiaries to comply with all such Environmental Laws (including, without limitation, all permits required under
Environmental Laws); and (iii) none of the Borrower nor any of its Subsidiaries has become subject to any Environmental Claim or any other liability under any Environmental Law. 

        (b)   None
of the Borrower or any of its Subsidiaries has treated, stored, transported or disposed of Hazardous Materials at or from any currently or formerly owned Real
Estate or facility relating to its business in a manner that could reasonably be expected to have a Material Adverse Effect. 

        8.15    Properties.    

        Each
of the Borrower and its Subsidiaries has good title to or leasehold interest in all properties that are necessary for the operation of their respective businesses as currently
conducted and as proposed to be conducted, free and clear of all Liens (other than any Liens permitted by this Agreement) and except where the failure to have such good title could not reasonably be
expected to have a Material Adverse Effect. 

        SECTION
9.    Affirmative Covenants.    

        The
Borrower hereby covenants and agrees that on the Funding Date and thereafter, for so long as this Agreement is in effect until the Commitments have terminated and the Loans together
with interest, Fees and all other Obligations incurred hereunder, are paid in full: 

        9.1    Information Covenants.    

        The
Borrower will furnish to each Lender and the Administrative Agent: 

        (a)   Annual Financial Statements.

        As
soon as available and in any event on or before the date on which such financial statements are required to be filed with the SEC (or, if such financial statements are not required to
be filed with the SEC, on or before the date that is 90 days after the end of each such fiscal year), the consolidated balance sheet of (i) the Borrower and the Restricted Subsidiaries
and (ii) the Borrower and its Subsidiaries, in each case as at the end of such fiscal year prepared in accordance with GAAP, and the related consolidated statement of operations and cash flows
for such fiscal year, each prepared in accordance with GAAP, setting forth comparative consolidated figures for the preceding fiscal year, and certified by independent certified public accountants of
recognized national standing whose opinion shall not be qualified as to the scope of audit or as to the status of the Borrower or any of the Material Subsidiaries as a going concern. 

        (b)   Quarterly Financial Statements.

        As
soon as available and in any event on or before the date on which such financial statements are required to be filed with the SEC with respect to each of the first three quarterly
accounting periods in each fiscal year of the Borrower (or, if such financial statements are not required to be filed with the SEC, on or before the date that is 45 days after the end of each
such quarterly accounting period) the consolidated balance sheet of (i) the Borrower and the Restricted Subsidiaries and (ii) the Borrower and its Subsidiaries, in each case as at the
end of such quarterly period, and the related consolidated statement of operations for such quarterly accounting period and for the elapsed portion of the fiscal year ended with the last day of such
quarterly period, and the related consolidated statement of cash flows for the elapsed portion of the fiscal year ended with the last day of such quarterly period, and setting forth comparative
consolidated figures for the related periods in the prior fiscal year or, in the case of such consolidated balance sheet, for the last day of such quarterly period in the prior fiscal year 

50

 

and
each prepared in accordance with GAAP, all of which shall be certified by an Officer of the Borrower, subject to changes resulting from audit and normal year-end audit adjustments. 

        (c)   Budgets.

        Within
60 days after the commencement of each fiscal year of the Borrower, consolidated budgets of the Borrower and its Restricted Subsidiaries in reasonable detail for the fiscal
year as customarily prepared by management of the Borrower for their internal use, setting forth the principal assumptions upon which such budgets are based. 

        (d)   Officer's Certificates.

        At
the time of the delivery of the financial statements provided for in Sections 9.1(a) and (b), a certificate of an Officer of the Borrower to the effect that no Default or Event of
Default, exists or, if any Default or Event of Default does exist, specifying the nature and extent thereof, which certificate shall set forth a specification of any change in the identity of the
Restricted Subsidiaries, Unrestricted Subsidiaries and Foreign Subsidiaries as at the end of such fiscal year or period, as the case may be, from the Restricted Subsidiaries, Unrestricted Subsidiaries
and Foreign Subsidiaries, respectively, provided to the Lenders on the Funding Date or the most recent fiscal year or period, as the case may be. 

        (e)   Notice of Default or Litigation.

        Promptly
after an Officer of any of the Borrower or any of its Subsidiaries obtains knowledge thereof, notice of (i) the occurrence of any event that constitutes a Default or
Event of Default, which notice shall specify the nature thereof, the period of existence thereof and what action the Borrower proposes to take with respect thereto, and (ii) any litigation or
governmental proceeding pending against the Borrower or any of its Subsidiaries that could reasonably be expected to result in a Material Adverse Effect. 

        (f)    Environmental Matters.

        The
Borrower will promptly advise the Lenders in writing after obtaining knowledge of any one or more of the following environmental matters, unless such environmental matters would not,
individually or when aggregated with all other such matters, be reasonably expected to result in a Material Adverse Effect: 

          (i)  any
pending or threatened Environmental Claim against the Borrower or any of its Subsidiaries or any Real Estate (as defined below); 

         (ii)  any
condition or occurrence on any Real Estate that (x) results in noncompliance by the Borrower or any of its Subsidiaries with any applicable Environmental Law
or (y) could reasonably be anticipated to form the basis of an Environmental Claim against the Borrower or any of its Subsidiaries or any Real Estate; 

        (iii)  any
condition or occurrence on any Real Estate that could reasonably be anticipated to cause such Real Estate to be subject to any restrictions on the ownership,
occupancy, use or transferability of such Real Estate under any Environmental Law; and 

        (iv)  the
taking of any removal or remedial action in response to the actual or alleged presence of any Hazardous Material on any Real Estate. 

        All
such notices shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal or remedial action and the response thereto. The term
"Real Estate" shall mean land, buildings and improvements owned or leased by the Borrower or any of its Subsidiaries, but excluding all operating
fixtures and equipment, whether or not incorporated into improvements. 

        (g)   Other Information. 

51

 

        Promptly
upon filing thereof, copies of any filings (including on Form 10-K, 10-Q or 8-K) or registration statements with, and reports to, the
SEC or any analogous Government Authority in any relevant jurisdiction by the Borrower or any of its Subsidiaries (other than amendments to any registration statement (to the extent such registration
statement, in the form it becomes effective, is delivered to the Lenders), exhibits to any registration statement and, if applicable, any registration statements on Form S-8) and
copies of all financial statements, proxy statements, notices and reports that the Borrower or any of its Subsidiaries shall send to the holders of any publicly issued debt of the Borrower and/or any
of its Subsidiaries (in each case whether publicly issued or not) in their capacity as such holders (in each case to the extent not theretofore delivered to the Lenders pursuant to this Agreement)
and, with reasonable promptness, such other information (financial or otherwise) as the Administrative Agent on its own behalf or on behalf of any Lender may reasonably request in writing from time to
time. 

        9.2    Books, Records and Inspections.    

        The
Borrower will, and will cause each of the Borrower's Subsidiaries to, permit officers and designated representatives of the Administrative Agent or the Required Lenders to visit and
inspect
any of the properties or assets of the Borrower and any such Subsidiary in whomsoever's possession to the extent that it is within such party's control to permit such inspection, and to examine the
books of account of the Borrower and any such Subsidiary and discuss the affairs, finances and accounts of the Borrower and of any such Subsidiary with, and be advised as to the same by, its and their
officers and independent accountants, all at such reasonable times and intervals and to such reasonable extent as the Administrative Agent or the Required Lenders may desire. 

        9.3    Maintenance of Insurance.    

        The
Borrower will, and will cause each of the Material Subsidiaries to, at all times maintain in full force and effect, with insurance companies that the Borrower believes (in the good
faith judgment of the management of the Borrower) are financially sound and responsible at the time the relevant coverage is placed or renewed, insurance in at least such amounts and against at least
such risks (and with such risk retentions) as are usually insured against in the same general area by companies engaged in the same or a similar business; and will furnish to the Lenders, upon written
request from the Administrative Agent, information presented in reasonable detail as to the insurance so carried. 

        9.4    Payment of Taxes.    

        The
Borrower will pay and discharge, and will cause each of its Subsidiaries to pay and discharge, all material taxes, assessments and governmental charges or levies imposed upon it or
upon its income or profits, or upon any properties belonging to it, prior to the date on which material penalties attach thereto, and all lawful material claims that, if unpaid, could reasonably be
expected to become a material Lien upon any properties of the Borrower or any of the Restricted Subsidiaries, provided that none of the Borrower nor any
of its Subsidiaries shall be required to pay any such tax, assessment, charge, levy or claim that is being contested in good faith and by proper proceedings if it has maintained adequate reserves (in
the good faith judgment of the management of the Borrower) with respect thereto in accordance with GAAP. 

        9.5    Consolidated Corporate Franchises.    

        The
Borrower will do, and will cause each Material Subsidiary to do, or cause to be done, all things necessary to preserve and keep in full force and effect its existence, corporate
rights and authority, except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect; provided,  however,
that the Borrower and its Subsidiaries may consummate any transaction permitted under Section 10.1, 10.5 or the definition of "Permitted
Investment." 

52

 

        9.6    Compliance with Statutes, Obligations, etc.    

        The
Borrower will, and will cause each Subsidiary to, comply with all applicable laws, rules, regulations and orders, except to the extent the failure to do so could not reasonably be
expected to have a Material Adverse Effect. 

        9.7    ERISA.    

        Promptly
after any of the Borrower or any Subsidiary or any ERISA Affiliate knows or has reason to know of the occurrence of any of the following events that, individually or in the
aggregate (including in the aggregate such events previously disclosed or exempt from disclosure hereunder, to the extent the liability therefor remains outstanding), would be reasonably likely to
have a Material Adverse Effect, the Borrower will deliver to each of the Lenders a certificate of an Officer or any other senior officer of the Borrower setting forth details as to such occurrence and
the action, if any, that the Borrower, such Subsidiary or such ERISA Affiliate is required or proposes to take, together with any notices (required, proposed or otherwise) given to or filed with or by
Borrower, such Subsidiary, such ERISA Affiliate, the PBGC, a Plan participant (other than notices relating to an individual participant's benefits) or the Plan administrator with respect thereto: that
a Reportable Event has occurred; that an accumulated funding deficiency has been incurred or an application is to be made to the Secretary of the Treasury for a waiver or modification of the minimum
funding standard (including any required installment payments) or an extension of any amortization period under Section 412 of the Code with respect to a Plan; that a Plan having an Unfunded
Current Liability has been or is to be terminated, reorganized, partitioned or declared insolvent under Title IV of ERISA (including the giving of written notice thereof); that a Plan has an Unfunded
Current Liability that has or will result in a lien under ERISA or the Code; that proceedings will be or have been instituted to terminate a Plan having an Unfunded Current Liability (including the
giving of written notice thereof); that a proceeding has been instituted against the Borrower, a Subsidiary of the Borrower or an ERISA Affiliate pursuant to Section 515 of ERISA to collect a
delinquent contribution to a Plan; that the PBGC has notified the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate of its intention to appoint a trustee to administer any Plan; that the
Borrower, any Subsidiary of the Borrower or any ERISA Affiliate has failed to make a required instalment or other payment pursuant to Section 412 of the Code with respect to a Plan; or that the
Borrower, any Subsidiary of the Borrower or any ERISA Affiliate has incurred or will incur (or has been notified in writing that it will incur) any liability (including any contingent or secondary
liability) to or on account of a Plan pursuant to Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of the Code. 

        9.8    Good Repair.    

        The
Borrower will, and will cause each of the Restricted Subsidiaries to, ensure that its properties and equipment used or useful in its business in whomsoever's possession they may be
to the extent that it is within the control of such party to cause same, are kept in good repair, working order and condition, normal wear and tear excepted, and that from time to time there are made
in such properties and equipment all needful and proper repairs, renewals, replacements, extensions, additions, betterments and improvements thereto, to the extent and in the manner customary for
companies in similar businesses and consistent with third party leases, except in each case to the extent the failure to do so could not be reasonably expected to have a Material Adverse Effect. 

        9.9    End of Fiscal Years; Fiscal Quarters.    

        The
Borrower will, for financial reporting purposes, cause (a) each of its, and each of its Subsidiaries', fiscal years to end on December 31 of each year and
(b) each of its, and each of its Subsidiaries', fiscal quarters to end on dates consistent with such fiscal year-end and the Borrower's past practice;  provided, however, that the Borrower may, upon
written notice to the Administrative Agent, change the financial reporting convention specified above to
any other financial reporting convention reasonably acceptable to the Administrative Agent, in which case the Borrower and the 

53

 

Administrative
Agent will, and are hereby authorized by the Lenders to, make any adjustments to this Agreement that are necessary in order to reflect such change in financial reporting. 

        9.10    Additional Guarantors.    

        The
Borrower will cause each Domestic Subsidiary who guarantees the Obligations of the Borrower under the Senior Secured Credit Facilities to become a Guarantor hereunder. 

        9.11    Use of Proceeds.    

        The
Borrower will use the proceeds of all Loans for the purposes set forth in Section 5.7. 

        9.12    Changes in Business.    

        The
Borrower and its Subsidiaries, taken as a whole, will not fundamentally and substantively alter the character of their business, taken as a whole, from the business conducted by the
Borrower and its Subsidiaries, taken as a whole, on the Funding Date and other business activities incidental or related to any of the foregoing. 

        9.13    [Intentionally Omitted].    

        9.14    [Intentionally Omitted].    

54

   
        9.15    Change of Control.    

        (a)   Upon
a Change of Control, the Borrower shall prepay each Lender's Loans at par (if such Change of Control occurs on or prior to the Initial Maturity Date) or at 101% of
par (if such Change of Control occurs thereafter), plus accrued and unpaid interest, if any, to the date of prepayment (the
"Change of Control Payment"), in accordance with the terms contemplated in this Section 9.15. 

        (b)   Prior
to complying with the provisions of this Section 9.15, but in any event within 30 days following a Change of Control, the Borrower shall either repay
all outstanding Indebtedness under the Senior Secured Credit Facilities or obtain the requisite consents, if any, under the Senior Secured Credit Facilities necessary to permit the prepayment of the
Loans and Notes required by this Section 9.15, provided that the failure to repay such Indebtedness or obtain such consent shall not affect the
obligation of the Borrower pursuant to subsection 9.15(a). 

        (c)   The
Borrower shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the
extent such laws or regulations are applicable in connection with the prepayment of the Loans pursuant to a Change of Control. To the extent that the provisions of any securities laws or regulations
conflict with the provisions of this Section 9.15, the Borrower shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations
described in this Section 9.15 by virtue thereof. 

        9.16    Acquisition Agreement.    

         The
Borrower and any applicable Restricted Subsidiary shall not amend or waive any of the terms of the Acquisition Agreement in any way that would reasonably be expected to
be materially adverse to the interests of the Lenders. The Borrower and any applicable Restricted Subsidiary shall consult with the Agents in connection with any litigation or arbitration proceeding
to which it is a party involving the Acquisition Agreement. 

        SECTION
10.    Negative Covenants.    

         The
Borrower hereby covenants and agrees that on the Funding Date and thereafter, for so long as this Agreement is in effect and until the Commitments have terminated and
the Loans, together with interest, Fees and all other Obligations incurred hereunder are paid in full: 

        10.1    Limitation on Asset Sales.    

        (a)   The
Borrower will not, and will not permit any Restricted Subsidiary to, cause, make or suffer to exist an Asset Sale, unless (x) the Borrower or such Restricted
Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal to the fair market value (as determined in good faith by the Borrower) of the assets sold or
otherwise disposed of and (y) except for any Permitted Asset Swap, at least 75% of the consideration therefor received by the Borrower or such Restricted Subsidiary, as the case may be, is in
the form of cash or Cash Equivalents; provided that the amount of (a) any liabilities (as shown on the Borrower's, or such Restricted
Subsidiary's most recent balance sheet or in the notes thereto) of the Borrower or any Restricted Subsidiary (other than liabilities that are by their terms subordinated to the Loans), that are
assumed by the transferee of any such assets and for which the Borrower and all Restricted Subsidiaries have been validly released by all creditors in writing, (b) any securities received by
the Borrower or such Restricted Subsidiary from such transferee that are converted by the Borrower or such Restricted Subsidiary into cash (to the extent of the cash received) within 180 days
following the closing of such Asset Sale and (c) any Designated Non-cash Consideration received by the Borrower or any Restricted Subsidiary in such Asset Sale having an aggregate
fair market value, taken together with all other Designated Non-cash Consideration received pursuant to this clause (c) that is at that time outstanding, not to exceed 7.0% of Total
Assets at the time of the receipt of such Designated Non-cash Consideration (with the fair market value of each item of Designated Non-cash Consideration being measured at the
time received 

55

 

and
without giving effect to subsequent changes in value), shall be deemed to be cash for purposes of this provision and for no other purpose. 

        (b)   Within
365 days after the Borrower's or any Restricted Subsidiary's receipt of the Net Proceeds of any Asset Sale, the Borrower or such Restricted Subsidiary, at
its option, may, apply the Net Proceeds from such Asset Sale: 

        (i)    to
permanently reduce: (A) Obligations under the Senior Secured Credit Facilities (and to correspondingly reduce commitments with respect thereto),
(B) Obligations under other Senior Indebtedness (and to correspondingly reduce commitments with respect thereto) or (C) Indebtedness of a Restricted Subsidiary which is not a Guarantor,
other than Indebtedness owed to the Borrower or another Restricted Subsidiary, 

        (ii)   to
an investment in (A) any one or more businesses, provided that such investment in any business is in the form
of the acquisition of Capital Stock and results in the Borrower or a Restricted Subsidiary,
as the case may be, owning an amount of the Capital Stock of such business such that it constitutes a Restricted Subsidiary, (B) capital expenditures or (C) acquisitions of other assets,
in each of (A), (B) and (C), used or useful in a Similar Business, and/or 

        (iii)  to
an investment in (A) any one or more businesses, provided that such investment in any business is in the form
of the acquisition of Capital Stock and results in the Borrower or a Restricted Subsidiary, as the case may be, owning an amount of the Capital Stock of such business such that it constitutes a
Restricted Subsidiary, (B) properties or (C) other assets that, in each of (A), (B) and (C) replace the businesses, properties and assets that are the subject of such Asset
Sale; 

provided that, any portion of such proceeds that has not been so reinvested within such one-year period pursuant to clauses (ii) or
(iii) above shall (x) be deemed to be Net Proceeds of an Asset Sale occurring on the last day of such one-year period and (y) be applied to the repayment of Loans and
other pari passu Indebtedness ratably, in accordance with Sections 10.1(c) and 5.2(a); and provided further that, for purposes of the preceding proviso,
such one-year period shall be extended by up to twelve months (or, if less, extended by up to the shortest period of time in excess of one year that such a reinvestment period exists
pursuant to, or may be extended under the terms of, any instrument governing any publicly offered or privately placed Indebtedness of the Parent Companies or the Borrower) from the last day of such
one-year period so long as (A) such proceeds are to be reinvested within such additional twelve-month period under the Borrower's business plan as most recently adopted in good
faith by its Board of Directors and (B) the Borrower believes in good faith that such proceeds will be so reinvested within such additional twelve-month period. 

        (c)   Any
Net Proceeds from the Asset Sale that are not invested or applied as provided and within the time period set forth in Section 10.1(b) shall be deemed to
constitute "Excess Proceeds." When the aggregate amount of Excess Proceeds exceeds $15.0 million, the Borrower shall make an offer to all Lenders and, if required by the terms of any pari passu
Indebtedness, to the holders of such pari passu Indebtedness (an "Asset Sale Offer") to prepay or purchase the maximum principal amount of the Loans and
such pari passu Indebtedness that is an integral multiple of $1,000, that may be prepaid or purchased out of the Excess Proceeds at an offer price in cash in an amount equal to 100% of the principal
amount thereof, plus accrued and unpaid interest, if any, to the date fixed for the closing of such offer, in accordance with the procedures set forth
in this Agreement. The Borrower shall commence an Asset Sale Offer with respect to Excess Proceeds within ten Business Days after the date that Excess Proceeds exceeds $15.0 million by mailing
the notice required pursuant to the terms of this Agreement, with a copy to the Administrative Agent. To the extent that the aggregate amount of the Loans and such pari passu Indebtedness tendered
pursuant to an Asset Sale Offer is less than the Excess Proceeds, the Borrower may use any remaining Excess Proceeds for general corporate purposes, subject to other covenants contained in this
Agreement. If the aggregate principal amount of the Loans 

56

 

or
the pari passu Indebtedness surrendered by such holders thereof exceeds the amount of Excess Proceeds, the Borrower shall select the Loans and such pari passu Indebtedness to be prepaid or
purchased on a pro rata basis based on the accreted value or principal amount of the Loans or such pari passu Indebtedness tendered. Upon completion of any such Asset Sale Offer, the amount of Excess
Proceeds shall be reset at zero. 

        (d)   Pending
the final application of any Net Proceeds pursuant to this Section 10.1, the Borrower or the applicable Restricted Subsidiary may apply such Net Proceeds
temporarily to reduce Indebtedness outstanding under a revolving credit facility or otherwise invest such Net Proceeds in any manner not prohibited by this Agreement. 

        (e)   Notices
of prepayment, purchase or redemption shall be mailed by first class mail, postage prepaid, at least 30 but not more than 60 days before the purchase or
redemption date to each Holder to be prepaid at such Holder's registered address. If any Loan is to be prepaid in part only, any notice of prepayment, purchase or redemption that relates to such Loans
shall state the portion of the principal amount thereof that has been or is to be purchased or redeemed. 

        (f)    A
new Note in principal amount equal to the unpurchased or unredeemed portion of any Note prepaid in part shall be issued in the name of the Holder thereof upon
cancellation of the original Note. On and after the prepayment, unless the Borrower defaults in payment of the purchase or redemption price, interest shall cease to accrue on Notes or portions thereof
purchased or called for redemption. 

        10.2    Limitation on Restricted Payments.    

        (a)   The
Borrower will not, and will not permit any Restricted Subsidiary to, directly or indirectly: (i) declare or pay any dividend or make any distribution on
account of the Borrower's or any Restricted Subsidiary's Equity Interests, including any dividend or distribution payable in connection with any merger or consolidation (other than
(A) dividends or distributions by the Borrower payable in Equity Interests (other than Disqualified Stock) of the Borrower or in options, warrants or other rights to purchase such Equity
Interests or (B) dividends or distributions by a Restricted Subsidiary so long as, in the case of any dividend or distribution payable on or in respect of any class or series of securities
issued by a Subsidiary other than a Wholly Owned Subsidiary, the Borrower or a Restricted Subsidiary receives at least its pro rata share of such dividend or distribution in accordance with its Equity
Interests in such class or series of securities); (ii) purchase, redeem, defease or otherwise acquire or retire for value any Equity Interests of the Borrower or any direct or indirect parent
of the Borrower, including in connection with any merger or consolidation; (iii) make any principal payment on, or redeem, repurchase, defease or otherwise acquire or retire for value in each
case, prior to any scheduled repayment, sinking fund payment or maturity, any Subordinated Indebtedness (other than (x) Indebtedness permitted under clauses (b)(vii) and
(b)(viii) of Section 10.3 or (y) the purchase, repurchase or other acquisition of Subordinated Indebtedness purchased in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the date of purchase, repurchase or acquisition); or (iv) make any Restricted Investment (all such payments and
other actions set forth in clauses (i) through (iv) above being collectively referred to as "Restricted Payments") unless at the time of
such Restricted Payment: 

        (A)  no
Default or Event of Default shall have occurred and be continuing or would occur as a consequence thereof; 

        (B)  immediately
after giving effect to such transaction on a pro forma basis, the Borrower could incur at least $1.00 of additional Indebtedness under
Section 10.3(a); and 

        (C)  such
Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Borrower and its Restricted Subsidiaries after July 23,
2003 (including Restricted Payments permitted by clauses (b)(i), (b)(ii) (with respect to the payment of dividends 

57

 

on
Refunding Capital Stock pursuant to clause (B) thereof only), (b)(iv) (only to the extent that amounts could have been paid pursuant to such clause if $7.5 million and
$15.0 million were substituted in such clause for $15.0 million and $30.0 million, respectively), (b)(v), (b)(vi)(A) and (C) and (b)(ix) below, but excluding all
other Restricted Payments permitted by clause (b) below, is less than the sum, without duplication, of: 

        (1)   50%
of the Consolidated Net Income of the Borrower for the period (taken as one accounting period) from the beginning of the first fiscal quarter commencing after
July 23, 2003, to the end of the Borrower's most recently ended fiscal quarter for which internal financial statements are available at
the time of such Restricted Payment, or, in the case such Consolidated Net Income for such period is a deficit, minus 100% of such deficit, plus

        (2)   100%
of the aggregate net cash proceeds and the fair market value, as determined in good faith by the Borrower's Board of Directors, of marketable securities received by
the Borrower since immediately after July 23, 2003 (other than net cash proceeds to the extent such net cash proceeds have been used to incur Indebtedness, Disqualified Stock or Preferred Stock
pursuant to Section 10.3(b)(xiii)) from the issue or sale of: 

        (x)   Equity
Interests of the Borrower, including Retired Capital Stock, but excluding cash proceeds and marketable securities received from the sale of (A) Equity
Interests to members of management, directors or consultants of the Borrower, any direct or indirect parent corporation of the Borrower and the Borrower's Subsidiaries after July 23, 2003 to
the extent such amounts have been applied to Restricted Payments made in accordance with clause (b)(iv) below and (B) Designated Preferred Stock, and to the extent actually
contributed to the Borrower, Equity Interests of the Borrower's direct or indirect parent corporations (excluding contributions of the proceeds from the sale of Designated Preferred Stock of such
corporations), or 

        (y)   debt
securities of the Borrower that have been converted into such Equity Interests of the Borrower; 

provided, however, that this clause (2) shall not include the proceeds from (a) Refunding
Capital Stock, (b) Equity Interests or converted debt securities of the Borrower sold to a Restricted Subsidiary or the Borrower, as the case may be, (c) Disqualified Stock or debt
securities that have been converted into Disqualified Stock or (d) Excluded Contributions, plus

        (3)   100%
of the aggregate amount of cash and the fair market value, as determined in good faith by the Borrower, of marketable securities contributed to the capital of the
Borrower following July 23, 2003 (other than net cash proceeds to the extent such net cash proceeds have been used to incur Indebtedness, Disqualified Stock or Preferred Stock pursuant to
Section 10.3(b)(xiii)) (other than by a Restricted Subsidiary and other than by any Excluded Contributions), plus

        (4)   100%
of the aggregate amount received in cash and the fair market value, as determined in good faith by the Borrower, of marketable securities received by means of, 

        (A)  the
sale or other disposition (other than to the Borrower or a Restricted Subsidiary) of Restricted Investments made by the Borrower and its Restricted Subsidiaries and
repurchases and redemptions of such Restricted Investments from the Borrower and its Restricted Subsidiaries and repayments of loans or advances which constitute Restricted Investments by the Borrower
and its Restricted Subsidiaries, or 

        (B)  the
sale (other than to the Borrower or a Restricted Subsidiary) of the stock of an Unrestricted Subsidiary or a distribution from an Unrestricted Subsidiary (other than
in each case to the extent the Investment in such Unrestricted Subsidiary was made by 

58

 

the
Borrower or a Restricted Subsidiary pursuant to clause (b)(vii) or (b)(x) below or to the extent such Investment constituted a Permitted Investment) or a dividend from an
Unrestricted Subsidiary, plus

        (5)   in
the case of the redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary, the fair market value of the Investment in such Unrestricted Subsidiary, as
determined by the Borrower's Board of Directors in good faith or if, in the case of an Unrestricted Subsidiary, such fair market value may exceed $25.0 million, in writing by an independent
investment banking firm of nationally recognized standing, at the time of the redesignation of such Unrestricted Subsidiary as a Restricted Subsidiary, other than an Unrestricted Subsidiary to the
extent the Investment in such Unrestricted Subsidiary was made by the Borrower or a Restricted Subsidiary pursuant to clause (b)(vii) or (b)(x) below or to the extent such
Investment constituted a Permitted Investment. 

        (b)   The
foregoing provisions will not prohibit: 

        (i)    the
payment of any dividend within 60 days after the date of declaration thereof, if at the date of declaration such payment would have complied with the
provisions of this Agreement; 

        (ii)   (A)
the redemption, repurchase, retirement or other acquisition of any Equity Interests ("Retired Capital Stock") or
Subordinated Indebtedness of the Borrower, or any Equity Interests of any direct or indirect parent corporation of the Borrower, in exchange for, or out of proceeds of the substantially concurrent
sale (other than to a Restricted Subsidiary) of, Equity Interests of the Borrower (in each case, other than Disqualified Stock) ("Refunding Capital
Stock") and (B) if immediately prior to the retirement of Retired Capital Stock, the declaration and payment of dividends thereon was permitted under clause (vi)
below, the declaration and payment of dividends on the Refunding Capital Stock (other than any Refunding Capital Stock the proceeds of which were used to redeem, repurchase, retire or otherwise
acquire any Equity Interests of any direct or indirect parent corporation of the Borrower) in an aggregate amount per year no greater than the aggregate amount of dividends per annum that was
declarable and payable on such Retired Capital Stock immediately prior to such retirement; 

        (iii)  the
redemption, repurchase or other acquisition or retirement of Subordinated Indebtedness of the Borrower made by exchange for, or out of the proceeds of the
substantially concurrent sale of, new Indebtedness of the Borrower, which is incurred in compliance with Section 10.3 so long as (A) the principal amount of such new Indebtedness does
not exceed the principal amount of the Subordinated Indebtedness being so redeemed, repurchased, acquired or retired for value (plus the amount of any
reasonable premium required to be paid under the terms of the instrument governing the Subordinated
Indebtedness being so redeemed, repurchased, acquired or retired), (B) such Indebtedness is subordinated to Senior Indebtedness and the Loans at least to the same extent as such Subordinated
Indebtedness so purchased, exchanged, redeemed, repurchased, acquired or retired for value, (C) such Indebtedness has a final scheduled maturity date equal to or later than the final scheduled
maturity date of the Subordinated Indebtedness being so redeemed, repurchased, acquired or retired and (D) such Indebtedness has a Weighted Average Life to Maturity equal to or greater than the
remaining Weighted Average Life to Maturity of the Subordinated Indebtedness being so redeemed, repurchased, acquired or retired; 

        (iv)  a
Restricted Payment to pay for the repurchase, retirement or other acquisition or retirement for value of common Equity Interests of the Borrower or any of its direct
or indirect parent corporations held by any future, present or former employee, director or consultant of the Borrower, any of its Subsidiaries or any of its direct or indirect parent corporations
pursuant to any management equity plan or stock option plan or any other management or employee benefit plan or agreement; provided, however, that the
aggregate Restricted Payments made under this clause (iv) do not exceed in any calendar year $15.0 million (with unused amounts in any calendar 

59

 

year
being carried over to succeeding calendar years subject to a maximum (without giving effect to the following proviso) of $30.0 million in any calendar year); and  provided further that such amount
in any calendar year may be increased by an amount not to exceed (A) the cash proceeds from the sale of Equity
Interests of the Borrower and, to the extent contributed to the Borrower, Equity Interests of any of the Borrower's direct or indirect parent corporations, in each case to members of management,
directors or consultants of the Borrower, any of its Subsidiaries or any of its direct or indirect parent corporations that occurs after July 23, 2003, to the extent the cash proceeds from the
sale of such Equity Interests have not otherwise been applied to the payment of Restricted Payments by virtue of Section 10.2(a)(C)  plus(B) the cash proceeds of key man life insurance policies
received by the Borrower and the Restricted Subsidiaries after July 23, 2003  less (C) the amount of any Restricted Payments previously made pursuant to clauses (A) and (B) of this
clause (iv); and  provided further that cancellation of Indebtedness owing to the Borrower from members of management of the Borrower, any of its direct or indirect
parent corporations or any Restricted Subsidiary in connection with a repurchase of Equity Interests of the Borrower or any of its direct or indirect parent corporations will not be deemed to
constitute a Restricted Payment for purposes of this Section 10.2 or any other provision of this Agreement; 

        (v)   the
declaration and payment of dividends to holders of any class or series of Disqualified Stock of the Borrower or any Restricted Subsidiary issued in accordance with
Section 10.3 to the extent such dividends are included in the definition of "Fixed Charges"; 

        (vi)  (A)
the declaration and payment of dividends to holders of any class or series of Designated Preferred Stock (other than Disqualified Stock) issued by the Borrower
after the Closing Date; 

        (B)  the
declaration and payment of dividends to a direct or indirect parent corporation of the Borrower, the proceeds of which will be used to fund the payment of dividends
to holders of any class or series of Designated Preferred Stock (other than Disqualified Stock) of such parent corporation issued after the Closing Date,  provided that the amount of dividends paid
pursuant to this clause (vi)(B) shall not exceed the aggregate amount of cash actually contributed to
the Borrower from the sale of such Designated Preferred Stock, or 

        (C)  the
declaration and payment of dividends on Refunding Capital Stock in excess of the dividends declarable and payable thereon pursuant to clause (ii) above; 

provided, however, in the case of each of (A), (B) and (C) of this clause (vi),
that for the most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date of issuance of such Designated Preferred Stock or the
declaration of such dividends on Refunding Capital Stock, after giving effect to such issuance or declaration on a pro forma basis, the Borrower and the Restricted Subsidiaries would have had a Fixed
Charge Coverage Ratio of at least 2.00 to 1.00; 

        (vii) Investments
in Unrestricted Subsidiaries having an aggregate fair market value, taken together with all other Investments made pursuant to this clause (vii)
that are at the time outstanding, without giving effect to the sale of an Unrestricted Subsidiary to the extent the proceeds of such sale do not consist of cash and/or marketable securities, not to
exceed $75.0 million at the time of such Investment (with the fair market value of each Investment being measured at the time made and without giving effect to subsequent changes in value); 

        (viii) repurchases
of Equity Interests deemed to occur upon exercise of stock options or warrants if such Equity Interests represent a portion of the exercise price of such
options or warrants; 

        (ix)  the
payment of dividends on the Borrower's Common Stock following the first public offering of the Borrower's Common Stock or the Common Stock of any of its direct or
indirect 

60

 

parent
corporations after the Closing Date of up to 6% per annum of the net proceeds received by or contributed to the Borrower in such public offering, other than public offerings with respect to the
Borrower's Common Stock registered on Form S-8 and other than any public sale constituting an Excluded Contribution; 

        (x)   Investments
that are made with Excluded Contributions; 

        (xi)  other
Restricted Payments in an aggregate amount not to exceed $75.0 million; 

        (xii) the
declaration and payment of dividends by the Borrower to, or the making of loans to, its parent corporation in amounts required for each of their respective direct
or indirect parent corporations to pay 

        (A)  franchise
taxes and other fees, taxes and expenses required to maintain their corporate existence, 

        (B)  federal,
state and local income taxes, to the extent such income taxes are attributable to the income of the Borrower and the Restricted Subsidiaries (and, to the extent
of the amount actually received from the Unrestricted Subsidiaries, in amounts required to pay such taxes to the extent attributable to the income of such Unrestricted Subsidiaries), 

        (C)  customary
salary, bonus and other benefits payable to officers and employees of any direct or indirect parent corporation of the Borrower to the extent such salaries,
bonuses and other benefits are attributable to the ownership or operation of the Borrower and the Restricted Subsidiaries, and 

61

  

        (D)  general
corporate overhead expenses of any direct or indirect parent corporation of the Borrower to the extent such expenses are attributable to the ownership or
operation of the Borrower and the Restricted Subsidiaries; 

        (xiii) distributions
or payments of Receivables Fees; 

        (xiv) cash
dividends or other distributions on the Borrower's or any Restricted Subsidiary's Capital Stock used to fund the payment of fees and expenses incurred in
connection with the Transactions or owed to Affiliates, in each case, to the extent permitted by Section 10.6; 

        (xv) the
payment of dividends or distributions to Holdings to be applied to fund cash interest payments on the Senior Discount Notes commencing August 15, 2007 in
accordance with the terms of the Senior Discount Notes on the Closing Date; and 

        (xvi) the
payment of dividends or distributions to Holdings in an amount equal to the July 2003 Equity Contribution for the purpose of repaying Indebtedness of any of
the Parent Companies; provided, however, that for the most recently ended four full fiscal quarters for
which internal financial statements are available immediately preceding the date of the declaration of such dividends or distributions, after giving effect to such declaration on a pro forma basis,
the Borrower and Restricted Subsidiaries would have had a Fixed Charge Coverage Ratio of at least 2.50 to 1.00; 

provided, however, that at the time of, and after giving effect to, any Restricted Payment permitted
under clauses (v) through (vii), clause (xi) and clauses (xv) and (xvi) above, no Default or Event of Default shall have occurred and be continuing or would occur as a
consequence thereof. 

        (c)   As
of the Funding Date, all of the Borrower's Subsidiaries will be Restricted Subsidiaries. The Borrower will not permit any Unrestricted Subsidiary to become a
Restricted Subsidiary except pursuant to the second to last sentence of the definition of "Unrestricted Subsidiary". For purposes of designating any
Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by the Borrower and the Restricted Subsidiaries (except to the extent repaid) in the Subsidiary so designated will be
deemed to be Restricted Payments in an amount determined as set forth in the last sentence of the definition of "Investment". Such designation will be
permitted only if a Restricted Payment in such amount would be permitted at such time, whether pursuant to Section 10.2(a) or under clause (vii), (x) or (xi) of
Section 10.2(b)), and if such Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. Unrestricted Subsidiaries will not be subject to any of the restrictive covenants set
forth in this Agreement. 

        10.3    Limitations on Incurrence of Indebtedness and Issuance of Disqualified Stock. 

        (a)   The
Borrower will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable, contingently or otherwise (collectively, "incur" and collectively, an "incurrence")
with respect to any Indebtedness (including Acquired Indebtedness) and the Borrower will not issue any shares of Disqualified Stock and will not permit any Restricted Subsidiary to issue any shares of
Disqualified Stock or Preferred Stock; provided, however, that the Borrower may incur Indebtedness
(including Acquired Indebtedness) or issue shares of Disqualified Stock, and any Restricted Subsidiary may incur Indebtedness (including Acquired Indebtedness), issue shares of Disqualified Stock and
issue shares of Preferred Stock, if the Fixed Charge Coverage Ratio for the Borrower's and the Restricted Subsidiaries' most recently ended four full fiscal quarters for which internal financial
statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock or Preferred Stock is issued would have been at least 2.00 to 1.00,
determined on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred, or the Disqualified Stock or Preferred Stock had
been issued, as the case may be, and the application of proceeds therefrom had occurred at the beginning of such four-quarter period;  provided that the 

62

 

amount
of Indebtedness (other than Acquired Indebtedness), Disqualified Stock and Preferred Stock that may be incurred pursuant to the foregoing by Restricted Subsidiaries that are not Guarantors of
the Loans shall not exceed $150.0 million at any one time outstanding; 

        (b)   The
foregoing limitations will not apply to: 

        (i)    the
existence of Indebtedness under the Credit Facilities on the Closing Date together with the incurrence by the Borrower or any Restricted Subsidiary of Indebtedness
under the Credit Facilities and the issuance and creation of letters of credit and bankers' acceptances thereunder (with letters of credit and bankers' acceptances being deemed to have a principal
amount equal to the face amount thereof), up to an aggregate principal amount of $2.05 billion outstanding at any one time; provided,  however that the
aggregate amount of Indebtedness incurred by Restricted Subsidiaries (other than Guarantors) pursuant to this
clause 10.3(b)(i) may not exceed $300.0 million outstanding at any one time; 

        (ii)   the
incurrence by the Borrower and the Guarantors of Indebtedness represented by the Loans (including the Guarantees); 

        (iii)  Existing
Indebtedness (other than Indebtedness described in clauses (i) and (ii)); 

        (iv)  Indebtedness
(including Capitalized Lease Obligations), Disqualified Stock and Preferred Stock incurred by the Borrower or any Restricted Subsidiary to finance the
purchase, lease or improvement of property (real or personal) or equipment that is used or useful in a Similar Business (whether through the direct purchase of assets or the Capital Stock of any
Person owning such assets) in an aggregate principal amount which, when aggregated with the principal amount of all other Indebtedness, Disqualified Stock and Preferred Stock then outstanding and
incurred pursuant to this clause (iv) and including all Refinancing Indebtedness incurred to refund, refinance or replace any other Indebtedness, Disqualified Stock and Preferred Stock incurred
pursuant to this clause (iv), does not exceed the greater of (x) $150.0 million and (y) 4.0% of Total Assets; 

        (v)   Indebtedness
incurred by the Borrower or any Restricted Subsidiary constituting reimbursement obligations with respect to letters of credit issued in the ordinary course
of business, including without limitation letters of credit in respect of workers' compensation claims, or other Indebtedness with respect to reimbursement type obligations regarding workers'
compensation claims; provided, however, that upon the drawing of such letters of credit or the
incurrence of such Indebtedness, such obligations are reimbursed within 30 days following such drawing or incurrence; 

        (vi)  Indebtedness
arising from agreements of the Borrower or a Restricted Subsidiary providing for indemnification, adjustment of purchase price or similar obligations, in
each case, incurred or assumed in connection with the disposition of any business, assets or a Subsidiary, other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of
such business, assets or a Subsidiary for the purpose of financing such acquisition; provided, however, that (A) such Indebtedness is not
reflected on the balance sheet of the Borrower or any Restricted Subsidiary (contingent obligations referred to in a footnote to financial statements and not otherwise reflected on the balance sheet
will not be deemed to be reflected on such balance sheet for purposes of this clause (A)) and (B) the maximum assumable liability in respect of all such Indebtedness shall at no time
exceed the gross proceeds including non-cash proceeds (the fair market value of such non-cash proceeds being measured at the time received and without giving effect to any
subsequent changes in value) actually received by the Borrower and any Restricted Subsidiary in connection with such disposition; 

        (vii) Indebtedness
of the Borrower to a Restricted Subsidiary; provided that any such Indebtedness owing to a
non-Guarantor is subordinated in right of payment to the Loans to at 

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least
the same extent as the Loans are subordinated to Senior Indebtedness; and provided further that any subsequent issuance or transfer of any Capital
Stock or any other event which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of any such Indebtedness (except to the Borrower or
another Restricted Subsidiary) shall be deemed, in each case to be an incurrence of such Indebtedness; 

        (viii) Indebtedness
of a Restricted Subsidiary to the Borrower or another Restricted Subsidiary; provided that (A) any
such Indebtedness is made pursuant to an intercompany note and (B) if a Guarantor incurs such Indebtedness to a Restricted Subsidiary that is not a Guarantor such Indebtedness is subordinated
in right of payment to the Guarantee of such Guarantor to at least the same extent as such Guarantor's Guarantee is subordinated to Senior Indebtedness; and provided
further that any subsequent transfer of any such Indebtedness (except to the Borrower or another Restricted Subsidiary) shall be deemed, in each case to be an incurrence of
such Indebtedness; 

        (ix)  shares
of Preferred Stock of a Restricted Subsidiary issued to the Borrower or another Restricted Subsidiary; provided
that any subsequent issuance or transfer of any Capital Stock or any other event which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer
of any such shares of Preferred Stock (except to the Borrower or another Restricted Subsidiary) shall be deemed in each case to be an issuance of such shares of Preferred Stock; 

        (x)   Hedging
Obligations (excluding Hedging Obligations entered into for speculative purposes) for the purpose of limiting (A) interest rate risk with respect to any
Permitted Indebtedness, (B) exchange rate risk with respect to any currency exchange or (C) commodity risk; 

        (xi)  obligations
in respect of performance and surety bonds and completion guarantees provided by the Borrower or any Restricted Subsidiary in the ordinary course of
business; 

        (xii) Indebtedness
of any Guarantor in respect of such Guarantor's Guarantee; 

        (xiii) Indebtedness,
Disqualified Stock and Preferred Stock of the Borrower or any Restricted Subsidiary not otherwise permitted hereunder in an aggregate principal amount
or liquidation preference, which when aggregated with the principal amount and liquidation preference of all other Indebtedness,
Disqualified Stock and Preferred Stock then outstanding and incurred pursuant to this clause (xiii), does not at any one time outstanding exceed the sum of: 

        (A)  $250.0 million,
and 

        (B)  100%
of the net cash proceeds received by the Borrower since immediately after July 23, 2003 from the issue or sale of Equity Interests of the Borrower or cash
contributed to the capital of the Borrower (in each case other than proceeds of Disqualified Stock or sales of Equity Interests to the Borrower or any of its Subsidiaries) as determined in accordance
with clauses (C)(2) and (C)(3) of Section 10.2(a) to the extent such net cash proceeds or cash have not been applied pursuant to such clauses to make Restricted Payments or to make other
investments, payments or exchanges pursuant to Section 10.2(b) or to make Permitted Investments (other than Permitted Investments specified in clauses (i) and (iii) of the
definition thereof), 

provided further, however, that the aggregate amount of Indebtedness, Disqualified Stock and Preferred
Stock incurred by Restricted Subsidiaries (other than Guarantors) pursuant to this clause (xiii) may not exceed $150.0 million outstanding at any one time (it being understood that any
Indebtedness, Disqualified Stock or Preferred Stock incurred pursuant to this clause (xiii) shall cease to be deemed incurred or outstanding for purposes of this clause (xiii) but shall
be deemed incurred for the purposes of Section 10.3(a) from and after the first date on which the Borrower or such Restricted Subsidiary 

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could
have incurred such Indebtedness, Disqualified Stock or Preferred Stock under Section 10.3(a) without reliance on this clause (xiii)); 

        (xiv) (A)
any guarantee by the Borrower or a Guarantor of Indebtedness or other obligations of any Restricted Subsidiary so long as the incurrence of such Indebtedness
incurred by such Restricted Subsidiary is permitted under the terms of this Agreement, or (B) any guarantee by a Restricted Subsidiary of Indebtedness of the Borrower  provided that such guarantee
is incurred in accordance with Section 10.9; 

        (xv) the
incurrence by the Borrower or any Restricted Subsidiary of Indebtedness, Disqualified Stock or Preferred Stock that serves to refund or refinance any Indebtedness,
Disqualified Stock or Preferred Stock incurred as permitted under Section 10.3(a) and Sections 10.3(b)(ii), (b)(iii), this clause (b)(xv) and (b)(xvi) or any Indebtedness,
Disqualified Stock or Preferred Stock issued to so refund or refinance such Indebtedness, Disqualified Stock or Preferred Stock including additional Indebtedness, Disqualified Stock or Preferred Stock
incurred to pay premiums and fees in connection therewith (the "Refinancing Indebtedness") prior to its respective maturity; provided,  however, that such
Refinancing Indebtedness (I) has a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is incurred
which is not less than the remaining Weighted Average Life to Maturity of Indebtedness, Disqualified Stock or Preferred Stock being refunded or refinanced, (II) to the extent such Refinancing
Indebtedness
refinances (x) Indebtedness subordinated or pari passu to the Loans or any Guarantee of the Loans, such Refinancing Indebtedness is subordinated
or pari passu to the Loans or such Guarantee at least to the same extent as the Indebtedness being refinanced or refunded or (y) Disqualified
Stock or Preferred Stock, such Refinancing Indebtedness must be Disqualified Stock or Preferred Stock, respectively, and (III) shall not include (A) Indebtedness, Disqualified Stock or
Preferred Stock of a Subsidiary that refinances Indebtedness, Disqualified Stock or Preferred Stock of the Borrower, (B) Indebtedness, Disqualified Stock or Preferred Stock of a Subsidiary that
is not a Guarantor that refinances Indebtedness, Disqualified Stock or Preferred Stock of a Guarantor, or (C) Indebtedness, Disqualified Stock or Preferred Stock of the Borrower or a Restricted
Subsidiary that refinances Indebtedness, Disqualified Stock or Preferred Stock of an Unrestricted Subsidiary; 

and
provided further that subclause (I) above of this clause (xv) shall not apply to any refunding or refinancing of any Senior
Indebtedness; and 

        (xvi) Indebtedness,
Disqualified Stock or Preferred Stock of Persons that are acquired by the Borrower or any Restricted Subsidiary or merged into the Borrower or a
Restricted Subsidiary in accordance with the terms of this Agreement; provided that such Indebtedness is not incurred or Disqualified Stock or Preferred
Stock is not issued in contemplation of such acquisition or merger; and provided further that after giving effect to such acquisition or merger, either: 

        (A)  the
Borrower would be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 10.3(a),
or 

        (B)  the
Fixed Charge Coverage Ratio is greater than immediately prior to such acquisition or merger. 

        (c)   For
purposes of determining compliance with this Section 10.3, in the event that an item of Indebtedness, Disqualified Stock or Preferred Stock meets the criteria
of more than one of the categories of permitted Indebtedness, Disqualified Stock or Preferred Stock described in clauses (i) through (xvi) above or is entitled to be incurred pursuant to
Section 10.3(a), the Borrower shall, in its sole discretion, classify such item of Indebtedness in any manner that complies with this Section 10.3 and such item of Indebtedness,
Disqualified Stock or Preferred Stock shall be treated as having been incurred pursuant to only one of such clauses of Section 10.3(b) or pursuant to Section 10.3(a) except as otherwise
set forth in clause (xiii) of Section 10.3(b). Accrual of interest, the accretion of accreted 

65

 

value
and the payment of interest in the form of additional Indebtedness, Disqualified Stock or Preferred Stock shall not be deemed to be an incurrence of Indebtedness, Disqualified Stock or Preferred
Stock for purposes of this Section 10.3. 

        (d)   For
purposes of determining compliance with any U.S. dollar-denominated restriction on the incurrence of Indebtedness, the U.S. dollar equivalent principal amount of
Indebtedness denominated in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred, in the case of term debt, or first
committed in the case of revolving credit debt; provided that if such Indebtedness is incurred to refinance other Indebtedness denominated in a foreign
currency, and such refinancing would cause the applicable U.S. dollar denominated restriction to be exceeded, such U.S. dollar denominated restriction shall be deemed not to have been exceeded so long
as the principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being refinanced. 

        (e)   The
principal amount of any Indebtedness incurred to refinance other Indebtedness, if incurred in a different currency from the Indebtedness being refinanced, shall be
calculated based on the currency exchange rate applicable to the currencies in which such respective Indebtedness is denominated that is in effect on the date of such refinancing. 

        10.4    Liens. 

        The
Borrower will not, and will not permit any of the Guarantors to, directly or indirectly create, incur, assume or suffer to exist any Lien (other than Permitted Liens) that secures
obligations under any Senior Subordinated Indebtedness or Subordinated Indebtedness on any asset or property of the Borrower or such Guarantor, or any income or profits therefrom, or assign or convey
any right to receive income therefrom, unless the Loans (or the Guarantee in the case of Liens of a Guarantor) are equally and ratably secured with (or senior to, in the event the Lien relates to
Subordinated Indebtedness) the obligations so secured or until such time as such obligations are no longer secured by a Lien. 

        10.5    Borrower and Subsidiary Guarantors May Consolidate, Etc. Only on Certain Terms. 

        (a)   The
Borrower may not consolidate or merge with or into or wind up into (whether or not the Borrower is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or assets in one or more related transactions, to any Person unless: 

        (i)    the
Borrower is the surviving corporation or the Person formed by or surviving any such consolidation or merger (if other than the Borrower) or to which such sale,
assignment, transfer, lease, conveyance or other disposition will have been made is a corporation organized or existing under the laws of the United States, any state thereof, the District of
Columbia, or any territory thereof (such Person, as the case may be, being herein called the "Successor Company"); 

        (ii)   the
Successor Company, if other than the Borrower, expressly assumes all the obligations of the Borrower under this Agreement and the Loans pursuant to an agreement or
other documents or instruments in form reasonably satisfactory to the Administrative Agent; 

        (iii)  immediately
after such transaction no Default or Event of Default exists; 

        (iv)  immediately
after giving pro forma effect to such transaction, as if such transaction had occurred at the beginning of the applicable four-quarter period, 

        (A)  the
Successor Company would be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in
Section 10.3(a) or 

        (B)  the
Fixed Charge Coverage Ratio for the Successor Company and the Restricted Subsidiaries would be greater than such Ratio for the Borrower and the Restricted
Subsidiaries immediately prior to such transaction; 

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        (v)   each
Guarantor, unless it is the other party to the transactions described above, in which case clause (b) below shall apply, shall have confirmed in writing that
its Guarantee shall apply to such Person's obligations under this Agreement and the Loans; and 

        (vi)  the
Borrower shall have delivered to the Administrative Agent an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, merger or
transfer and such supplemental agreement, if any, comply with this Agreement. 

        The
Successor Company shall succeed to, and be substituted for, the Borrower under this Agreement and the Loans. Notwithstanding clauses (iii) and (iv) above, 

        (A)  any
Restricted Subsidiary may consolidate with, merge into or transfer all or part of its properties and assets to the Borrower, and 

        (B)  the
Borrower may merge with an Affiliate incorporated solely for the purpose of reincorporating the Guarantor or the Borrower in another State of the United States so
long as the amount of Indebtedness of the Borrower and the Restricted Subsidiaries is not increased thereby. 

        (b)   Subject
to Section 10.9(b), each Guarantor shall not, and the Borrower shall not permit any Guarantor to, consolidate or merge with or into or wind up into
(whether or not such Guarantor is the surviving corporation), or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets in one or more
related transactions to, any Person unless: 

        (A)    (1) such
Guarantor is the surviving corporation or the Person formed by or surviving any such consolidation or merger (if other than such Guarantor) or to
which such sale, assignment, transfer, lease, conveyance or other disposition will have been made is a corporation organized or existing under the laws of the United States, any state thereof, the
District of Columbia, or any territory thereof (such Guarantor or such Person, as the case may be, being herein called the "Successor Person"); 

        (2)   the
Successor Person, if other than such Guarantor, expressly assumes all the obligations of such Guarantor under this Agreement and such Guarantor's Guarantee pursuant
to a supplemental agreement or other documents or instruments in form reasonably satisfactory to the Administrative Agent; 

        (3)   immediately
after such transaction no Default or Event of Default exists; and 

        (4)   the
Borrower shall have delivered to the Administrative Agent an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, merger or
transfer and such supplemental agreement, if any, comply with this Agreement; or 

        (B)    (1) the
transaction is made in compliance with Sections 10.1 and, to the extent applicable, 5.2; and 

        (2)   if
the Successor Person is a Restricted Subsidiary (other than such Guarantor or a Designated Non-Guarantor Joint Venture), the Successor Person expressly
assumes all the obligations of such Guarantor under this Agreement and such Guarantor's Guarantee pursuant to supplemental agreements or other documents or instruments in form reasonably satisfactory
to the Administrative Agent; provided, however, that if the Successor Person is a Designated
Non-Guarantor Joint Venture, all the obligations of such Guarantor under this Agreement and such Guarantor's Guarantee will be required to be expressly assumed by such Designated
Non-Guarantor Joint Venture only if, immediately after giving effect to such transaction or transactions on a pro forma basis, (i) a Default or Event of Default would then exist and
be continuing or (ii) the total assets (excluding intercompany assets) of such Guarantor, valued immediately prior to such transaction, together with any assets (excluding 

67

 

intercompany
assets) previously transferred to any Designated Non-Guarantor Joint Venture by any other Guarantor, valued at the time such assets were transferred to such Designated
Non-Guarantor Joint Ventures, would exceed 10.0% of Total Assets (excluding intercompany assets) prior to the most recent proposed transfer. 

        Subject
to Section 10.9(b) hereof, the Successor Person shall succeed to, and be substituted for, such Guarantor under this Agreement and such Guarantor's Guarantee.
Notwithstanding the foregoing, any Guarantor may merge into or transfer all or part of its properties and assets to another Guarantor or the Borrower. 

        (c)   Upon
any consolidation or merger, or any sale, assignment, conveyance, transfer, lease or disposition of all or substantially all of the assets of the Borrower or any
Guarantor in accordance with Sections 10.5(a) and (b) hereof, the successor Person formed by such consolidation or into which the Borrower or such Guarantor, as the case may be, is merged or
the successor Person to which such sale, assignment, conveyance, transfer, lease or disposition is made, shall succeed to, and be substituted for, and may exercise every right and power of, the
Borrower or such Guarantor, as the case may be, under this Agreement and/or the Guarantees, as the case may be, with the same effect as if such successor Person had been named as the Borrower or such
Guarantor, as the case may be, herein and/or the Guarantees, as the case may be. When a successor Person assumes all obligations of its predecessor hereunder, the Loans or the Guarantees, as the case
may be, such predecessor shall be released from all obligations; provided that in the event of a transfer or lease, the predecessor shall not be
released from the payment of principal and interest or other obligations on the Loans or the Guarantees, as the case may be. 

        10.6    Transactions with Affiliates. 

        (a)   The
Borrower will not, and will not permit any Restricted Subsidiary to, make any payment to, or sell, lease, transfer or otherwise dispose of any of their respective
properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the
benefit of, any Affiliate of the Borrower (each of the foregoing, an "Affiliate Transaction") involving aggregate payments or consideration in excess of
$5.0 million, unless (i) such Affiliate Transaction is on terms that are not materially less favorable to the Borrower or the relevant Restricted Subsidiary than those that would have
been obtained in a comparable transaction by the Borrower or such Restricted Subsidiary with an unrelated Person and (ii) the Borrower delivers to the Administrative Agent with respect to any
Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $10.0 million, a resolution adopted by the majority of the Board of Directors of
the Borrower approving such Affiliate Transaction and set forth in an Officers' Certificate certifying that such Affiliate Transaction complies with clause (i) above. 

        (b)   The
foregoing provisions will not apply to the following: 

        (i)    transactions
between or among the Borrower and/or any Restricted Subsidiaries; 

        (ii)   Restricted
Payments permitted by the provisions of this Agreement described in Section 10.2 and the definition of "Permitted Investment"; 

        (iii)  the
payment of customary annual management, consulting, monitoring and advisory fees and related expenses to the Sponsors and their respective Affiliates; 

        (iv)  the
payment of reasonable and customary fees paid to, and indemnities provided on behalf of, officers, directors, employees or consultants of the Borrower, any of its
direct or indirect parent corporations or any Restricted Subsidiary; 

        (v)   payments
by the Borrower or any Restricted Subsidiary to the Sponsors and their respective Affiliates made for any financial advisory, financing, underwriting or
placement services 

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or
in respect of other investment banking activities, including, without limitation, in connection with acquisitions or divestitures which payments are approved by a majority of the Board of Directors
of the Borrower in good faith; 

        (vi)  transactions
in which the Borrower or any Restricted Subsidiary, as the case may be, delivers to the Administrative Agent a letter from an Independent Financial Advisor
stating that such transaction is fair to the Borrower or such Restricted Subsidiary from a financial point of view or meets the requirements of clause (i) of the preceding paragraph; 

        (vii) payments
or loans (or cancellations of loans) to employees or consultants of the Borrower or any of its direct or indirect parent corporations or any Restricted
Subsidiary which are approved by a majority of the Board of Directors of the Borrower in good faith; 

        (viii) any
agreement as in effect as of the Closing Date or any amendment thereto (so long as any such amendment is not disadvantageous to the Lenders in any material
respect); 

        (ix)  the
existence of, or the performance by the Borrower or any Restricted Subsidiary of its obligations under the terms of, any stockholders agreement (including any
registration rights agreement or purchase agreement related thereto) to which it is a party as of the Closing Date and any similar agreements which it may enter into thereafter;  provided, however, that
the existence of, or the performance by the Borrower or any Restricted Subsidiary of obligations under any future amendment to
any such existing agreement or under any similar agreement entered into after the Closing Date shall only be permitted by this clause (ix) to the extent that the terms of any such amendment or
new agreement are not otherwise disadvantageous to the Lenders in any material respect; 

        (x)   the
Transactions and the payment of all fees and expenses related to the Transactions; 

        (xi)  transactions
with customers, clients, suppliers, or purchasers or sellers of goods or services, in each case in the ordinary course of business and otherwise in
compliance with the terms of this Agreement which are fair to the Borrower and the Restricted Subsidiaries, in the reasonable determination of the Board of Directors of the Borrower or the senior
management thereof, or are on terms at least as favorable as might reasonably have been obtained at such time from an unaffiliated party; 

        (xii) the
issuance of Equity Interests (other than Disqualified Stock) of the Borrower to any Permitted Holder; and 

        (xiii) sales
of accounts receivable, or participations therein, in connection with any Receivables Facility. 

        10.7    Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries. 

        The
Borrower will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any consensual
encumbrance or consensual restriction on the ability of any Restricted Subsidiary to: 

        (a)    (i) pay
dividends or make any other distributions to the Borrower or any Restricted Subsidiary (1) on its Capital Stock or (2) with respect to
any other interest or participation in, or measured by, its profits, or (ii) pay any Indebtedness owed to the Borrower or any Restricted Subsidiary; 

        (b)   make
loans or advances to the Borrower or any Restricted Subsidiary; or 

        (c)   sell,
lease or transfer any of its properties or assets to the Borrower or any Restricted Subsidiary, except (in each case) for such encumbrances or restrictions
existing under or by reason of: 

        (i)    contractual
encumbrances or restrictions in effect on the Closing Date, including, without limitation, pursuant to the Senior Secured Credit Facilities and their related
documentation; 

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        (ii)   this
Agreement and the Loans; 

        (iii)  purchase
money obligations for property acquired in the ordinary course of business that impose restrictions of the nature discussed in clause (c) above on the
property so acquired; 

        (iv)  applicable
law or any applicable rule, regulation or order; 

        (v)   any
agreement or other instrument of a Person acquired by the Borrower or any Restricted Subsidiary in existence at the time of such acquisition (but not created in
contemplation thereof), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so
acquired; 

        (vi)  contracts
for the sale of assets, including, without limitation customary restrictions with respect to a Subsidiary pursuant to an agreement that has been entered into
for the sale or disposition of all or substantially all of the Capital Stock or assets of such Subsidiary; 

        (vii) secured
Indebtedness otherwise permitted to be incurred pursuant to Sections 10.3 and 10.4 that limit the right of the debtor to dispose of the assets securing such
Indebtedness; 

        (viii) restrictions
on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business; 

70

  

        (ix)  other
Indebtedness, Disqualified Stock or Preferred Stock of Restricted Subsidiaries permitted to be incurred subsequent to the Closing Date pursuant to
Section 10.3; 

        (x)   customary
provisions in joint venture agreements and other similar agreements; 

        (xi)  customary
provisions contained in leases and other agreements entered into in the ordinary course of business; 

        (xii) any
encumbrances or restrictions of the type referred to in clauses (i), (ii) and (iii) above imposed by any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings of the contracts, instruments or obligations referred to in clauses (i) through (xi) above,  provided that such
amendments, modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings are, in the good
faith judgment of the Borrower's Board of Directors, no more restrictive with respect to such encumbrance and other restrictions than those prior to such amendment, modification, restatement, renewal,
increase, supplement, refunding, replacement or refinancing; and 

        (xiii) restrictions
created in connection with any Receivables Facility that, in the good faith determination of the Board of Directors of the Borrower, are necessary or
advisable to effect such Receivables Facility. 

        10.8    Limitation on Other Senior Subordinated Indebtedness. 

        The
Borrower will not, and will not permit any Guarantor to, directly or indirectly, incur any Indebtedness (including Acquired Indebtedness) that is subordinate in right of payment to
any other Indebtedness of the Borrower or such Guarantor, as the case may be, unless such Indebtedness is either (a) pari passu in right of payment with the Loans or such other Guarantor's
Guarantee, as the case may be or (b) subordinate in right of payment to the Loans or such Guarantor's Guarantee, as the case may be. 

        10.9    Limitation on Guarantees of Indebtedness by Restricted Subsidiaries. 

        (a)   The
Borrower shall not permit any Restricted Subsidiary, other than a Guarantor, to guarantee the payment of any Indebtedness of the Borrower or any other Guarantor
unless: 

        (i)    such
Restricted Subsidiary simultaneously executes and delivers a Guarantee Supplement to the Guarantee Agreement providing for a guarantee of payment of the Loans by
such Restricted Subsidiary, except that with respect to a guarantee of Indebtedness of the Borrower or any Guarantor: 

        (A)  if
the Loans or such Guarantor's Guarantee of the Loans are subordinated in right of payment to such Indebtedness, the Guarantee under the Guarantee Supplement shall be
subordinated to such Restricted Subsidiary's guarantee with respect to such Indebtedness substantially to the same extent as the Loans are subordinated to such Indebtedness under this Agreement and 

        (B)  if
such Indebtedness is by its express terms subordinated in right of payment to the Loans or such Guarantor's Guarantee of the Loans, any such guarantee of such
Restricted Subsidiary with respect to such Indebtedness shall be subordinated in right of payment to such Restricted Subsidiary's Guarantee with respect to the Loans substantially to the same extent
as such Indebtedness is subordinated to the Loans; 

        (ii)   such
Restricted Subsidiary waives and shall not in any manner whatsoever claim or take the benefit or advantage of, any rights of reimbursement, indemnity or
subrogation or any other rights against the Borrower or any other Restricted Subsidiary as a result of any payment by such Restricted Subsidiary under its guarantee; and 

71

 

        (iii)  such
Restricted Subsidiary shall deliver to the Administrative Agent an Opinion of Counsel to the effect that: 

        (A)  such
Guarantee of the Loans has been duly executed and authorized, and 

        (B)  such
Guarantee of the Loans constitutes a valid, binding and enforceable obligation of such Restricted Subsidiary, except insofar as enforcement thereof may be limited
by bankruptcy, insolvency or similar laws (including, without limitation, all laws relating to fraudulent transfers) and except insofar as enforcement thereof is subject to general principles of
equity; 

provided that this Section 10.9(a) shall not be applicable to any guarantee of any Restricted Subsidiary that (x) existed at the time such
Person became a Restricted Subsidiary and was not incurred in connection with, or in contemplation of, such Person becoming a Restricted Subsidiary or (y) guarantees the payment of Obligations
of the Borrower or any Restricted Subsidiary under the Senior Secured Credit Facilities or any other Senior Indebtedness and any refunding, refinancing or replacement thereof, in whole or in part,  provided that such refunding, refinancing or replacement thereof constitutes Senior Indebtedness and provided
further that any such Senior Indebtedness and any refunding, refinancing or replacement thereof is not incurred pursuant to a registered offering of securities under the
Securities Act or a private placement of securities (including under Rule 144A) pursuant to an exemption from the registration requirements of the Securities Act, which private placement
provides for registration rights under the Securities Act. 

        (b)   Notwithstanding
the foregoing and the other provisions of this Agreement, any Guarantee by a Restricted Subsidiary of the Loans shall provide by its terms that it shall
be automatically and unconditionally released and discharged upon: 

        (i)    any
sale, exchange or transfer of all of the Borrower's Capital Stock in any Restricted Subsidiary (by merger or otherwise), which sale, exchange or transfer is not
prohibited by this Agreement to (A) any Person not a Restricted Subsidiary or (B) any Designated Non-Guarantor Joint Venture;  provided, however,
that, in the case of transfers to a Designated Non-Guarantor Joint
Venture, the applicable Guarantee shall not be released and discharged if, immediately after giving effect to such release and discharge on a pro forma basis, (x) a Default or Event of Default
would then exist and be continuing or (y) the total assets (excluding intercompany assets) of such Restricted Subsidiary transferred, valued immediately prior to its transfer to a Designated
Non-Guarantor Joint Venture, together with any assets (excluding intercompany assets) previously transferred to any Designated Non-Guarantor Joint Venture by any other
Restricted Subsidiary that was a Guarantor, valued at the time such assets were transferred to such Designated Non-Guarantor Joint Ventures, would exceed 10.0% of the Total Assets
(excluding intercompany assets) prior to the most recent proposed transfer, or 

        (ii)   the
release or discharge of the guarantee by such Restricted Subsidiary which resulted in the creation of such Guarantee, except a discharge or release by or as a
result of payment under such guarantee, or 

        (iii)  if
the Borrower properly designates any Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary. 

        SECTION
11.    Events of Default.

        An
"Event of Default" occurs if: 

        (a)   the
Borrower defaults in payment when due and payable, upon redemption, acceleration or otherwise, of principal on the Loans whether or not such payment shall be
prohibited by Section 3; 

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        (b)   the
Borrower defaults in the payment when due of interest on or with respect to the Loans whether or not such payment shall be prohibited by Section 3 and such
default continues for a period of 30 days, or the Borrower defaults in the payment when due of any other amount payable under the Credit Documents whether or not such payment shall be
prohibited by Section 3 and such default continues for a period of 30 days; 

        (c)   the
Borrower or any Restricted Subsidiary defaults in the performance, or breaches any covenant, warranty or other agreement contained in this Agreement or the Guarantee
Agreement (other than a default in the performance, or breach of a covenant, warranty or agreement which is specifically dealt with in clauses (a) or (b) of this Section 11) and
such default or breach continues for a period of 30 days after receipt of written notice given by the Administrative Agent or the Holders of at least 30% in aggregate principal amount of the
outstanding Loans; 

        (d)   the
Borrower or any Restricted Subsidiary defaults under any mortgage, indenture or instrument under which there is issued or by which there is secured or evidenced any
Indebtedness for money borrowed by the Borrower or any Restricted Subsidiary or the payment of which is guaranteed by the Borrower or any Restricted Subsidiary (other than Indebtedness owed to the
Borrower or a Restricted Subsidiary), whether such Indebtedness or guarantee now exists or is created after the Funding Date, if both (i) such default either (A) results from the failure
to pay any such Indebtedness at its stated final maturity (after giving effect to any applicable grace periods) or (B) relates to an obligation other than the obligation to pay principal of any
such Indebtedness at its stated final maturity and results in the holder or holders of such Indebtedness causing such Indebtedness to become due prior to its stated maturity and (ii) the
principal amount of such Indebtedness, together with the principal amount of any other such Indebtedness in default for failure to pay principal at its stated final maturity (after giving effect to
any applicable grace periods), or the maturity of which has been so accelerated, aggregate $35.0 million or more at any one time outstanding; 

        (e)   Holdings,
the Borrower or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 

        (i)    commences
a voluntary case; 

        (ii)   consents
to the entry of an order for relief against it in an involuntary case; 

        (iii)  consents
to the appointment of a Custodian of it or for all or substantially all of its property; or 

        (iv)  takes
any comparable action under any foreign laws relating to insolvency; 

        (f)    a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that remains unstayed and in effect for 60 days and: 

        (i)    is
for relief against Holdings, the Borrower or any Significant Subsidiary in an involuntary case; 

        (ii)   appoints
a Custodian of Holdings, the Borrower or any Significant Subsidiary or for all or substantially all of the property of Holdings, the Borrower or any
Significant Subsidiary; or 

        (iii)  orders
the winding up or liquidation of Holdings, the Borrower or any Significant Subsidiary, 

provided that clauses (i), (ii) and (iii) shall not apply to an Unrestricted Subsidiary, unless such action or proceeding has a material
adverse effect on the interests of Holdings, the Borrower or any Significant Subsidiary; 

        (g)   the
failure by the Borrower or any Significant Subsidiary to pay final judgments aggregating in excess of $35.0 million, which final judgments remain unpaid,
undischarged and unstayed for a period 

73

 

of
more than 60 days after such judgment becomes final, and in the event such judgment is covered by insurance, an enforcement proceeding has been commenced by any creditor upon such judgment
or decree which is not promptly stayed; 

        (h)   the
Guarantee Agreement of any Significant Subsidiary shall for any reason cease to be in full force and effect or be declared null and void or any Officer of any
Guarantor that is a Significant Subsidiary denies that it has any further liability under its Guarantee or gives notice to such effect (other than by reason of the termination of this Agreement or the
release of any such Guarantee in accordance with this Agreement); or 

        (i)    any
representation or warranty made by any Credit Party (or any of its officers) under or in connection with any Credit Document shall prove to have been incorrect in
any material respect when made. 

        The
foregoing shall constitute Events of Default whatever the reason for any such Event of Default and whether it is voluntary or involuntary or is effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body. 

        The
term "Bankruptcy Law" means Title 11, United States Bankruptcy Code of 1978, as amended, or any similar United State federal or state
law relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or for the relief of debtors or any amendment to, succession to or change in any such law. The
term "Custodian" means any receiver, trustee, assignee, liquidator, administrator, administrative receiver, custodian or similar official under any
Bankruptcy Law. 

        If
any Event of Default (other than of a type specified in clauses (e) or (f) above) occurs and is continuing, the Administrative Agent or the Lenders holding at least 30%
in aggregate principal amount of the then outstanding Loans may declare the principal, premium, if any, interest and any other monetary obligations on all the then outstanding Loans to be due and
payable immediately; provided, however, that, so long as any Indebtedness permitted to be incurred under this Agreement as part of the Senior Secured
Credit Facilities shall be outstanding, no such acceleration shall be effective until the earlier of (i) acceleration of any such Indebtedness under the Senior Secured Credit Facilities or
(ii) five Business Days after the giving of written notice to the Borrower and the Administrative Agent of such acceleration. Upon the effectiveness of such declaration, such principal and
interest will be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising under clauses (e) or (f) of the first paragraph of this section,
all outstanding Loans will become immediately due and payable without further action or notice. 

        Notwithstanding
the foregoing, in the event of any Event of Default specified in clause (d) above, such Event of Default and all consequences thereof (excluding, however, any
resulting payment default) shall be annulled, waived and rescinded, automatically and without any action by the Administrative Agent or the Lenders, if within 20 days after such Event of
Default arose (x) the Indebtedness or guarantee that is the basis for such Event of Default has been discharged, or (y) the holders thereof have rescinded or waived the acceleration,
notice or action (as the case may be) giving rise to such Event of Default, or (z) if the default that is the basis for such Event of Default has been cured. 

        SECTION
12.    The Agents.

        12.1    Appointment.

        Each
Lender hereby irrevocably designates and appoints the Administrative Agent as the agent of such Lender under this Agreement and the other Credit Documents, and each such Lender
irrevocably authorizes the Administrative Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Credit Documents and to exercise such powers
and perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement and 

74

 

the
other Credit Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, (i) the Agents shall
not have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any other Credit Document or otherwise exist against the Agents and (ii) the term "Agent" or "Syndication Agent" as applied to
Goldman Sachs Credit Partners L.P. is a title of convenience and Goldman Sachs Credit Partners L.P. is not acting in any representative capacity for any Lender except itself. 

        12.2    Delegation of Duties.

        The
Administrative Agent may execute any of its duties under this Agreement and the other Credit Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agents or attorneys
in-fact selected by it with reasonable care. 

        12.3    Exculpatory Provisions.

        Neither
the Agents nor any of their respective officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be (a) liable for any action
lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement or any other Credit Document (except for its or such Person's own gross negligence or wilful
misconduct) or (b) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by the Borrower or any Guarantor or any officer thereof
contained in this Agreement or 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 Agreement or any other Credit Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Credit Document or for
any failure of the Borrower or any Guarantor to perform its obligations hereunder or thereunder. The Agents shall not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Credit Document, or to inspect the properties, books or records of the Borrower. 

        12.4    Reliance by Administrative Agent.

        The
Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telecopy,
telex or teletype 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 Borrower), independent accountants and other experts selected by the Administrative Agent. The Administrative
Agent may deem and treat the Lender specified in the Register with respect to any amount owing hereunder as the owner thereof for all purposes unless a written notice of assignment, negotiation or
transfer thereof shall have been filed with the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other
Credit Document unless it shall first receive such advice or concurrence of the Lenders as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all
liability and expense that may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining
from acting, under this Agreement and the other Credit Documents in accordance with a request of the Lenders, and such request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders and all future Holders of the Loans. 

75

 

        12.5    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 hereunder unless the Administrative Agent has received
notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a "notice of
default". In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to the Lenders. The Administrative Agent shall
take such action with respect to such Default or Event of Default as shall be reasonably directed by the Lenders, provided that unless and until the
Administrative Agent shall have received such directions, the Administrative Agent may (but shall 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 in the best interests of the Lenders (except to the extent that this Agreement requires that such action be taken only with the approval of the
Lenders, as applicable). 

        12.6    Non-Reliance on Agents and Other Lenders.

        Each
Lender expressly acknowledges that neither the Agents nor any of their officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Agents hereinafter taken, including any review of the affairs of the Borrower or any Guarantor, shall be deemed to constitute any
representation or warranty by the Agents to any Lender. Each Lender represents to the Agents that it has, independently and without reliance upon the Agents 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, operations, property, financial and other condition and creditworthiness of the
Borrower and any Guarantor and made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also represents that it will, independently and without reliance upon the
Agents 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 Agreement and the other Credit Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other
condition and creditworthiness of the Borrower and any Guarantor. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Agents hereunder, the Agents
shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, assets, operations, properties, financial condition, prospects or
creditworthiness of the Borrower or any Guarantor that may come into the possession of the Agents or any of their officers, directors, employees, agents, attorneys-in-fact or
Affiliates. 

        12.7    Indemnification.

        The
Lenders agree to indemnify the Agents in their capacity as such (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), ratably
according to their respective portions of the Total Credit Exposure in effect on the date on which indemnification is sought (or, if indemnification is sought after the date upon which the Commitments
shall have terminated and the Loans shall have been paid in full, ratably in accordance with their respective portions of the Total Credit Exposure in effect immediately prior to such date), from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (including, without
limitation, at any time following the payment of the Loans) be imposed on, incurred by or asserted against the Agents, or any of them, in any way relating to or arising out of, the Commitments, this
Agreement, any of the other Credit Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by the
Agents, or any of them, under or in connection with any of the foregoing, provided that no Lender shall be liable for the payment of any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, 

76

 

suits,
costs, expenses or disbursements resulting from the gross negligence or wilful misconduct of any Agent. The agreements in this Section 12.7 shall survive the payment of the Loans and all
other amounts payable hereunder. 

        12.8    Agents in their Individual Capacities.

        The
Agents and their respective Affiliates may make loans to, accept deposits from and generally engage in any kind of business with the Borrower and any Guarantor as though the Agents
were not the Agents hereunder and under the other Credit Documents. With respect to the Loans made by it, the Agents shall have the same rights and powers under this Agreement and the other Credit
Documents as any Lender and may exercise the same as though it were not an Agent, and the terms "Lender" and
"Lenders" shall include the Agents in their individual capacities. 

        12.9    Successor Administrative Agent.

        The
Administrative Agent may resign as Administrative Agent upon 20 days' prior written notice to the Lenders and the Borrower. If the Administrative Agent shall resign as
Administrative Agent under this Agreement and the other Credit Documents, then the Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall, so long
as no Default has occurred and is continuing, be approved by the Borrower (which approval shall not be unreasonably withheld), whereupon such successor agent shall succeed to the rights, powers and
duties of the Administrative Agent, and the term "Administrative Agent" means such successor agent effective upon such appointment and approval, and the
former Administrative Agent's rights, powers and duties as Administrative Agent shall be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any Holders of the Loans. After any retiring Administrative Agent's resignation as Administrative Agent, the provisions of this Section 12 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement and the other Credit Documents. 

        12.10    Withholding Tax.

        To
the extent required by any applicable law, the Administrative Agent may withhold from any interest payment to any Lender an amount equivalent to any applicable withholding tax. If the
Internal Revenue Service or any other Governmental Authority asserts a claim that the Administrative Agent did not properly withhold tax from amounts paid to or for the account of any Lender because
the appropriate form was not delivered or was not properly executed or because such Lender failed to notify the Administrative Agent of a change in circumstance which rendered the exemption from, or
reduction of, withholding tax ineffective or for any other reason, such Lender shall indemnify the Administrative Agent fully for all amounts paid, directly or indirectly, by the Administrative Agent
as tax or otherwise, including any penalties or interest and together with all expenses (including legal expenses, allocated internal costs and out-of-pocket expenses)
incurred. For the avoidance of doubt, the foregoing shall have no effect on any obligations of the Borrower hereunder. 

        SECTION 13.    Miscellaneous.

        13.1    Amendments and Waivers.

        Neither
this Agreement nor any other Credit Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with the provisions of this
Section 13.1. The Required Lenders may, or, with the written consent of the Required Lenders, the Administrative Agent may, from time to time, (a) enter into with the relevant Credit
Party or Credit Parties written amendments, supplements or modifications hereto and to the other Credit Documents for the purpose of adding any provisions to this Agreement or the other Credit
Documents or changing in any manner the rights of the Lenders or of the Borrower hereunder or thereunder or (b) waive, on such terms and conditions as the Required Lenders or the Administrative
Agent, as the case may be, may specify in 

77

 

such
instrument, any of the requirements of this Agreement or the other Credit Documents or any Default or Event of Default and its consequences; provided,
however, that no such waiver and no such amendment, supplement or modification shall directly (i) forgive any portion of any Loan or extend the final scheduled maturity
date of any Loan or reduce the stated rate, or forgive any portion, or extend the date for the payment, of any interest or fee payable hereunder (other than as a result of waiving the applicability of
any post-default increase in interest rates) or extend the final expiration date of any Lender's Commitment or increase the aggregate amount of the Commitments of any Lender, in each case
without the written consent of each Lender directly and adversely affected thereby, or (ii) amend, modify or waive any provision of this Section 13.1 or reduce the percentage specified
in the definition of "Required Lenders" or consent to the assignment or transfer by the Borrower of its rights and obligations under any Credit Document to which it is a party (except as permitted
pursuant to Section 10.5), in each case without the written consent of each Lender directly and adversely affected thereby, or (iii) amend, modify or waive any provision of
Section 12 without the written consent of the then current Administrative Agent, or (iv) release all or substantially all the Guarantors under the Guarantee Agreement, in each case
without the written consent of all Lenders, or (v) restrict the right of any Lender to extend the Initial Loans into Extended Loans on the Initial Maturity Date without the consent of each
Lender directly affected thereby, or (vi) amend, modify or waive any provisions of Section 3 that adversely affects the rights of the Lenders without the written consent of Holders
having or holding Loans representing at least 662/3% of the Dollar Equivalent of the aggregate principal amount of the Loans then outstanding. Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the affected Lenders and shall be binding upon the Borrower, such Lenders, the Administrative Agent and all future Holders of the affected
Loans. In the case of any waiver, the Borrower, the Lenders and the Administrative Agent shall be restored to their former positions and rights hereunder and under the other Credit Documents, and any
Default or Event of Default waived shall be deemed to be cured and not continuing, it being understood that no such waiver shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereon. 

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        13.2    Notices.    

        All
notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy transmission), and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered, or three days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received,
addressed as follows in the case of the Borrower and the Administrative Agent, and as set forth on Schedule 13.2 in the case of the other parties hereto, or to such other address as may be
hereafter notified by the respective parties hereto: 

	 	 	The Borrower:	 	Rockwood Specialties Group, Inc.

100 Overlook Center

Princeton, NJ 08540
	

 	
 	

with a copy to:	
 	

Attention: Thomas J. Riordan, General Counsel

Fax: +1-609-514-8722
	

 	
 	

with a copy to:	
 	

Kohlberg Kravis Roberts & Co., L.P.

9 West 57th Street

Suite 4200

New York, NY 10019

Attention: Brian Carroll

Fax: +1-212-750-0003
	

 	
 	

and to:	
 	

 
	

 	
 	

The Administrative Agent:	
 	

Credit Suisse First Boston

11 Madison Avenue

New York, NY 10010

Attention: Carloyn Tee

Phone: (212) 325-9936

Fax: (212) 325-8304
	

 	
 	

with a copy to:	
 	

Douglas Buffone

Credit Suisse First Boston LLC

11 Madison Avenue

New York, NY 10010

Phone: (212) 325-2000

Fax: (917) 326-8389
	

 	
 	

with a copy to:	
 	

Peter M. Labonski

Latham & Watkins LLP

885 Third Avenue

New York, NY 10022

Phone: (212) 906-1200

Fax: (212) 751-4864

provided that any notice, request or demand to or upon the Administrative Agent or the Lenders pursuant to Sections 2.3, 2.9 and 5.1 shall not be
effective until received. Notwithstanding the foregoing, notices and other communications to the Lenders may be delivered or furnished by electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by the Administrative Agent. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic 

79

 

communications
pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications. 

        13.3    No Waiver; Cumulative Remedies.    

        No
failure to exercise and no delay in exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or privilege hereunder or under the other Credit
Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise
of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by
law. 

        13.4    Survival of Representations and Warranties    

        All
representations and warranties made hereunder, in the other Credit Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall
survive the execution and delivery of this Agreement and the making of the Loans hereunder. 

        13.5    Payment of Expenses and Taxes.    

        The
Borrower agrees (a) to pay or reimburse the Administrative Agent and each Lead Arranger for all their reasonable out-of-pocket costs and expenses
incurred in connection with the development, negotiation, preparation and execution and completion of, and any amendment, supplement or modification to, this Agreement, the other Credit Documents and
any other documents prepared in connection herewith or therewith, and the consummation and administration of the transactions contemplated hereby and thereby, including, without limitation, the
reasonable fees, disbursements and other charges of counsel to the Administrative Agent and each Lead Arranger and any value added tax or other similar tax thereon, (b) to pay or reimburse each
Lender and the Administrative Agent for all its reasonable and documented costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement, the other
Credit Documents and any such other documents, including, without limitation, the reasonable fees, disbursements and other charges of counsel to each Lender and of counsel to the Administrative Agent
and any value added tax or other similar tax thereon, (c) to pay, indemnify, and hold harmless each Lender and the Administrative Agent from, any and all recording and filing fees and any and
all liabilities with respect to, or resulting from any delay in paying, stamp, excise, value added and other similar taxes, if any, that may be payable or determined to be payable in connection with
the execution and delivery of, or consummation or administration of any of the transactions contemplated by, or any amendment, restatement, supplement or modification of, or any waiver or consent or
suspension of rights under or in respect of, this Agreement, the other Credit Documents and any such other documents, and (d) to pay, indemnify, and hold harmless each Lender and the
Administrative Agent and their respective directors, officers, employees, trustees and agents from and against any and all other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever, including, without limitation, reasonable and documented fees, disbursements and other charges of counsel (and any
value added tax or similar tax thereon), with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Credit Documents and the transaction
contemplated thereunder and any such other documents including, without limitation, any of the foregoing relating to the use of the Loans and other proceeds received by the Borrower hereunder and
thereunder, or to the violation of, noncompliance with or liability under, any Environmental Law applicable to the operations of the Borrower, any of its Subsidiaries or any of their respective
property (all the foregoing in this clause (d), collectively, the "indemnified liabilities");  provided that the Borrower shall have no obligation
hereunder to the Administrative Agent or any Lender nor any of their respective directors, officers,
employees, trustees and agents with respect to indemnified liabilities arising from (i) the gross negligence or wilful 

80

 

misconduct
of the party to be indemnified or (ii) disputes among the Administrative Agent, the Lenders and/or their transferees. The agreements in this Section 13.5 shall survive
repayment of the Loans and all other amounts payable hereunder. 

        The
Borrower agrees that, without the prior written consent of Credit Suisse First Boston, UBS Loan Finance LLC, UBS Securities LLC or Goldman Sachs Credit Partners L.P., as the case may
be, it will not settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding in respect of which indemnification could be sought under the
indemnification provisions of this Agreement (whether or not any of the Lead Arrangers or any other Person entitled to indemnification under this Section 13.5 is an actual or potential party to
such claim, action or proceeding), unless such settlement, compromise or consent includes an unconditional release of each Person entitled to indemnification under this Section 13.5 from all
liability arising out of such claim, action or proceeding. 

        13.6    Successors and Assigns; Participations and Assignments.    

        (a)   This
Agreement shall be binding upon and inure to the benefit of the Borrower, the Lenders, the Agents and their respective successors and assigns, except that the
Borrower may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of each Lender. 

        (b)   Any
Lender may, in the ordinary course of its business and in accordance with applicable law, at any time sell to one or more banks or other entities
("Participants") participating interests in any Loan owing to such Lender, any Commitment of such Lender or any other interest of such Lender hereunder
and under the other Credit Documents (including to loan derivative counterparties in respect of swaps or similar arrangements having the practical or economic effect thereof). In the event of any such
sale by a Lender of a participating interest to a Participant, such Lender's obligations under this Agreement to the other parties to this Agreement shall remain unchanged, such Lender shall remain
solely responsible for the performance thereof, such Lender shall remain the Holder of any such Loan for all purposes under this Agreement and the other Credit Documents, and the Borrower and the
Administrative Agent shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement and the other Credit Documents. In no
event shall any Participant under any such participation have any right to approve any amendment or waiver of any provision of any Credit Document, or any consent to any departure by any Credit Party
therefrom, except to the extent that such amendment, waiver or consent would directly forgive any principal of any Loan or reduce the stated rate, or forgive any portion, or postpone the date for the
payment, of any interest or fee payable hereunder (other than as a result of waiving the applicability of any post-default increase in interest rates), or increase the aggregate amount of
the Commitments of any Lender or postpone the date of the final scheduled maturity of any Loan, in each case to the extent subject to such participation. The Borrower agrees that if amounts
outstanding under this Agreement are due or unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default, each Participant shall, to the maximum
extent permitted by applicable law, be deemed to have the right of setoff in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this Agreement; provided that, in purchasing such participating interest, such
Participant shall be deemed to have agreed to share with the Lenders the proceeds thereof as provided in Section 13.7 as fully as if it were a Lender hereunder. The Borrower also agrees that
each Participant shall be entitled to the benefits of Sections 2.9 and 2.10 with respect to its participation in the Commitments and the Loans outstanding from time to time as if it were a Lender;  provided that no Participant shall be entitled to receive any greater amount pursuant to any such Section than the transferor Lender would have been
entitled to receive in respect of the amount 

81

 

of
the participation transferred by such transferor Lender to such Participant had no such transfer occurred. 

        (c)   Any
Lender (an "Assignor") may, in the ordinary course of its business and in accordance with applicable law, at any time
and from time to time assign to any Lender or any Affiliate thereof or to any other banks or other entities (an "Assignee") (A) without
consulting with the Borrower, all or any part of its rights and obligations under this Agreement with respect to its Commitments and (B) without consulting with the Borrower, Loans made
pursuant to this Agreement and the other Credit Documents and all rights related thereto, in each case pursuant to an Assignment and Acceptance, substantially in the form of Exhibit B (an
"Assignment and Acceptance"), (i) to be electronically executed and delivered to the Administrative Agent via an electronic settlement system
then acceptable to the Administrative Agent, which shall initially be the settlement system of ClearPar, LLC, or (ii) to be manually executed and delivered together with a processing and
recordation fee of $3500, in each case, by such Assignee and such Assignor for the Administrative Agent's acceptance and recording in the Register;  provided that, except in the case of an assignment of
all of a Lender's interests under this Agreement, unless otherwise agreed to by the Administrative
Agent, no such assignment to an Assignee (other than any Lender or any Affiliate thereof) shall be in an aggregate principal amount of less than the Dollar Equivalent of $250,000. Upon such execution,
delivery, acceptance and recording, from and after the effective date determined pursuant to such Assignment and Acceptance, (x) the Assignee thereunder shall be a party hereto and, to the
extent provided in such Assignment and Acceptance, have the rights and obligations of a Lender hereunder with a Commitment as set forth therein and (y) the Assignor thereunder shall, to the
extent provided in such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an
assigning Lender's rights and obligations under this Agreement, such assigning Lender shall cease to be a party hereto). Notwithstanding any provision of this Agreement to the contrary, consultation
with the Borrower shall not be required for any assignment that occurs at any time when any of the events described in Section 11(e) or (f) shall have occurred and be continuing with
respect to the Borrower. 

        (d)   Nothing
herein shall prohibit any Lender from pledging or assigning all or any portion of its Loans to any Federal Reserve Bank in accordance with applicable law. To the
extent requested by any Lender, the Borrower shall execute and deliver to such Lender a Note dated the Funding Date substantially in the form Exhibit A hereto to evidence the portion of the
Loan made by such Lender and with appropriate insertions, as it may from time to time be amended pursuant to the applicable provisions hereof (collectively, the
"Notes"). 

        (e)   The
Administrative Agent, on behalf of the Borrower, shall maintain at the address of the Administrative Agent referred to in Section 13.12 a copy of each
Assignment and Acceptance delivered to it and a register (the "Register") for the recordation of the names and addresses of the Lenders, the Commitment
of, and principal amount of the Loans owing to, each Lender from time to time and the other information required by Section 2.5(e). The entries in the Register shall be conclusive, in the
absence of manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register as the owner of a Loan or other obligation
hereunder as the owner thereof for all purposes of this Agreement and the other Credit Documents, notwithstanding any notice to the contrary. Any assignment of any Loan or other obligation hereunder
shall be effective only upon appropriate entries with respect thereto being made in the Register. The Register shall be available for inspection by the Borrower or by the Administrative Agent on
behalf of any Lender at any reasonable time and from time to time upon reasonable prior notice. 

        (f)    Upon
its receipt of an Assignment and Acceptance executed by an assigning Lender and an Assignee (and, in the case of an Assignee that is not then a Lender or an
Affiliate thereof, by the Borrower and the Administrative Agent) and, if required under clause (c)(B) above, together with 

82

 

payment
to the Administrative Agent of a registration and processing fee of $3500, the Administrative Agent shall (i) promptly accept such Assignment and Acceptance and (ii) on the
effective date determined pursuant thereto record the information contained therein in the Register and give notice of such acceptance and recordation to the Lenders and the Borrower. 

        (g)   Subject
to Section 13.15, the Borrower authorizes each Lender to disclose to any Participant or Assignee (each, a
"Transferee") and any prospective Transferee any and all financial information in such Lender's possession concerning the Borrower and its Affiliates
that has been delivered to such Lender by or on behalf of the Borrower pursuant to this Agreement or which has been delivered to such Lender by or on behalf of the Borrower in connection with such
Lender's credit evaluation of the Borrower and its Affiliates prior to becoming a party to this Agreement; provided that neither the Administrative
Agent nor any Lender shall provide to any Transferee or prospective Transferee any of the Confidential Information unless such person shall have previously executed a Confidentiality Agreement in the
form of Exhibit C. 

        13.7    Replacements of Lenders under Certain Circumstances.    

        The
Borrower shall be permitted to replace any Lender that (a) requests reimbursement for amounts owing pursuant to Section 2.9, 2.10, 2.11 or 5.4 or (b) is affected
in the manner described in Section 2.9(d) and as a result thereof any of the actions described in such Section is required to be taken, with a replacement bank or other financial institution  provided that (i) such replacement does not conflict with any Requirement of Law, (ii) no Event of Default shall have occurred and be
continuing at the time of such replacement, (iii) the Borrower shall repay (or the replacement bank or institution shall purchase, at par) all Loans and other amounts (other than any disputed
amounts), pursuant to Section 2.9, 2.10, 2.11 or 5.4, as the case may be, owing to such replaced Lender prior to the date of replacement, (iv) the replacement bank or institution, if not
already a Lender, and the terms and conditions of such replacement, shall be reasonably satisfactory to the Agents, (v) the replaced Lender shall be obligated to make such replacement in
accordance with the provisions of Section 13.6 (provided that the Borrower shall be obligated to pay the registration and processing fee referred
to therein) and (vi) any such replacement shall not be deemed to be a waiver of any rights that the Borrower, the Administrative Agent or any other Lender shall have against the replaced
Lender. 

        13.8    Adjustments; Setoff.    

        (a)   If
any Lender (a "benefitted Lender") shall at any time receive any payment of all or part of its Loans, or interest
thereon, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by setoff, pursuant to events or proceedings of the nature referred to in Section 11(e) or (f), or
otherwise), in a greater proportion than any such payment to or collateral received by any other Lender, if any, in respect of such other Lender's Loans, or interest thereon, such benefitted Lender
shall purchase for cash from the other Lenders a participating interest in such portion of each such other Lender's Loan, or shall provide such other Lenders with the benefits of any such collateral,
or the proceeds thereof, as shall be necessary to cause such benefitted Lender to share the excess payment or benefits of such collateral or proceeds ratably with each of the Lenders;  provided, however,
that if all or any portion of such excess payment or benefits is thereafter recovered from such benefitted Lender, such purchase
shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest. 

        (b)   After
the occurrence and during the continuance of an Event of Default, in addition to any rights and remedies of the Lenders provided by law, each Lender shall have the
right, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by the Borrower
hereunder (whether at the stated maturity, by acceleration or otherwise) to setoff and appropriate and apply against such 

83

 

amount
any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of the Borrower. Each Lender agrees
promptly to notify the Borrower and the Administrative Agent after any such setoff and application made by such Lender; provided that the failure to
give such notice shall not affect the validity of such setoff and application. 

        13.9    Counterparts.    

        This
Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy transmission), and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative
Agent. 

        13.10    Severability and Integration.    

        Any
provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. This Agreement and the
other Credit Documents represent the agreement of the Borrower, the Administrative Agent and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent or any Lender relative to subject matter hereof not expressly set forth or referred to herein or in the other Credit Documents. 

        13.11    Governing Law.    

        THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

        13.12    Submission to Jurisdiction; Waivers.    

        The
Borrower hereby irrevocably and unconditionally: 

        (a)   submits
for itself and its property in any legal action or proceeding relating to this Agreement and the other Credit Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America
for the Southern District of New York and appellate courts from any thereof; 

        (b)   consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

        (c)   agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar
form of mail), postage prepaid, to the Borrower at its address set forth in Section 13.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto; 

        (d)   agrees
that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other
jurisdiction; and 

84

 

        (e)   waives,
to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 13.12
any special, exemplary, punitive or consequential damages. 

        13.13    Acknowledgments.    

        The
Borrower hereby acknowledges that: 

        (a)   it
has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Credit Documents; 

        (b)   no
Agent or Lender has any fiduciary relationship with or duty to the Borrower arising out of or in connection with this Agreement or any of the other Credit Documents,
and the relationship between Agents and Lenders, on one hand, and the Borrower, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and 

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

        13.14    Waivers of Jury Trial.    

        THE BORROWER, THE AGENTS AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT
OR ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN. 

        13.15    Confidentiality.    

        The
Administrative Agent and each Lender shall hold all non-public information furnished by or on behalf of the Borrower in connection with such Lender's evaluation of
whether to become a Lender hereunder or obtained by such Lender or the Administrative Agent pursuant to the requirements of this Agreement ("Confidential
Information"), in accordance with its customary procedure for handling confidential information of this nature and (in the case of a Lender that is a bank) in accordance with
safe and sound banking practices and in any event may make disclosure as
required or requested by any governmental agency or representative thereof or pursuant to legal process or to such Lender's or the Administrative Agent's attorneys, professional advisors or
independent auditors or Affiliates, or any nationally recognized rating agency that requires access to information about a Lender's investment portfolio in connection with ratings issued with respect
to such Lender; provided that unless specifically prohibited by applicable law or court order, each Lender and the Administrative Agent shall notify the
Borrower of any request by any governmental agency or representative thereof (other than any such request in connection with an examination of the financial condition of such Lender by such
governmental agency) for disclosure of any such non-public information prior to disclosure of such information, and provided further that in
no event shall any Lender or the Administrative Agent be obligated or required to return any materials furnished by the Borrower or any Subsidiary of the Borrower. Each Lender and the Administrative
Agent agrees that it will not provide to prospective Transferees or to prospective direct or indirect contractual counterparties in swap agreements to be entered into in connection with Loans made
hereunder any of the Confidential Information unless such Person shall have previously executed a Confidentiality Agreement in the form of Exhibit C. 

        13.16    Judgment Currency.    

        (a)   The
obligations of the Borrower hereunder and under the other Credit Documents to make payments in Dollars or in Euro, as the case may be (the
"Obligation Currency"), shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any 

85

 

currency
other than the Obligation Currency, except to the extent that such tender or recovery results in the effective receipt by the Administrative Agent or a Lender of the full amount of the
Obligation Currency expressed to be payable to the Administrative Agent or Lender under this Agreement or the other Credit Documents. If, for the purpose of obtaining or enforcing judgment against the
Borrower or any other Credit Party in any court or in any jurisdiction, it becomes necessary to convert into or from any currency other than the Obligation Currency (such other currency being
hereinafter referred to as the "Judgment Currency") an amount due in the Obligation Currency, the conversion shall be made, at the Dollar Equivalent of
such amount, in each case, as of the date immediately preceding the day on which the judgment is given (such Business Day being hereinafter referred to as the "Judgment
Currency Conversion Date"). 

        (b)   If
there is a change in the rate of exchange prevailing between the Judgment Currency Conversion Date and the date of actual payment of the amount due, the Borrower
covenants and agrees to pay, or cause to be paid, such additional amounts, if any (but in any event not a lesser amount), as may be necessary to ensure that the amount paid in the Judgment Currency,
when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the Obligation Currency which could have been purchased with the amount of Judgment Currency
stipulated in the judgment or judicial award at the rate of exchange prevailing on the Judgment Currency Conversion Date. 

        (c)   For
purposes of determining the Dollar Equivalent, such amounts shall include any premium and costs payable in connection with the purchase of the Obligation Currency. 

86

        IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written. 

	 	 	ROCKWOOD SPECIALTIES GROUP, INC.
	

 	
 	

By:	

/s/  MICHAEL W. VALENTE      

	

 	
 	

 	

Name:	

Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as Administrative Agent, a Lead Arranger and a Lender
	

 	
 	

By:	

/s/  DAVID J. DODD      

	

 	
 	

 	

Name:	

David J. Dodd
	 	 	 	Title:	Associate
	

 	
 	

By:	

/s/  ALEXIS F. MAGED      

	

 	
 	

 	

Name:	

Alexis F. Maged
	 	 	 	Title:	Director
	

 	
 	

GOLDMAN SACHS CREDIT PARTNERS L.P., as Syndication Agent, a Lead Arranger and a Lender
	

 	
 	

By:	

/s/  WILLIAM W. ARCHER      

	

 	
 	

 	

Name:	

William W. Archer
	 	 	 	Title:	Managing Director
	

 	
 	

UBS SECURITIES LLC, as a Lead Arranger
	

 	
 	

By:	

/s/  ERIC H. COOMBS      

	

 	
 	

 	

Name:	

Eric H. Coombs
	 	 	 	Title:	Executive Director
	

 	
 	

By:	

/s/  WARREN JERVEY      

	

 	
 	

 	

Name:	

Warren Jervey
	 	 	 	Title:	Director and Counsel

Region Americas Legal
	 	 	 	 	 

	

 	
 	

UBS AG, Stamford Branch, as Documentation Agent
	

 	
 	

By:	

/s/  WILFRED V. SAINT      

	

 	
 	

 	

Name:	

Wilfred V. Saint
	 	 	 	Title:	Director

Banking Products Services, US
	

 	
 	

By:	

/s/  JOSELIN FERNANDES      

	

 	
 	

 	

Name:	

Joselin Fernandes
	 	 	 	Title:	Associate Director

Banking Products Services, US
	

 	
 	

UBS LOAN FINANCE LLC, as a Lender
	

 	
 	

By:	

/s/  WILFRED V. SAINT      

	

 	
 	

 	

Name:	

Wilfred V. Saint
	 	 	 	Title:	Director

Banking Products Services, US
	

 	
 	

By:	

/s/  JOSELIN FERNANDES      

	

 	
 	

 	

Name:	

Joselin Fernandes
	 	 	 	Title:	Associate Director

Banking Products Services, USEXHIBIT 10.7  

GUARANTEE AGREEMENT  

        GUARANTEE dated as of July 30, 2004 (this "Guarantee"), made among each of the subsidiaries of the Borrower
(as defined below) listed on the signature pages of this Guarantee (each such subsidiary individually, a "Guarantor" and, collectively, the
"Guarantors") and the Agents (as defined below) for the lenders (the "Lenders") from time to time
parties to the Senior Subordinated Loan Agreement dated as of July 30, 2004 (as the same may be amended, supplemented or otherwise modified from time to time, the
"Senior Subordinated Loan Agreement") among Rockwood Specialties Group, Inc., a Delaware corporation (the
"Borrower"), the Lenders, Credit Suisse First Boston, acting through its Cayman Islands Branch, as Administrative Agent (the
"Administrative Agent"), Goldman Sachs Credit Partners L.P., as syndication agent (in such capacity, the "Syndication
Agent") for the Lenders, and UBS AG, Stamford Branch, as documentation agent (in such capacity, the "Documentation Agent") for
the Lenders and Credit Suisse First Boston, acting through its Cayman Islands Branch, UBS Securities LLC and Goldman Sachs Credit Partners L.P. as lead arrangers (the "Lead
Arrangers" and together with the Administrative Agent, the Documentation Agent and the Syndication Agent, the "Agents"). 

W I T N E S S E T H:  

        WHEREAS, pursuant to the Senior Subordinated Loan Agreement, the Lenders have severally agreed to make Loans to the Borrower upon the terms and subject to the
conditions set forth therein; 

        WHEREAS,
the proceeds of the Loans will be used in part to enable the Borrower to make valuable transfers to the Guarantors in connection with the operation of their respective
businesses; 

        WHEREAS,
each Guarantor acknowledges that it will derive substantial direct and indirect benefit from the making of the Loans by the Lenders; and 

        WHEREAS,
it is a condition precedent to the obligation of the Lenders to make the Loans available to the Borrower under the Senior Subordinated Loan Agreement that the Guarantors shall
have executed and delivered this Guarantee to the Agents for the ratable benefit of the Lenders; 

        NOW
THEREFORE, in consideration of the premises and to induce the Agents and the Lenders to enter into the Senior Subordinated Loan Agreement and to induce the Lenders to make the Loans
available to the Borrower under the Senior Subordinated Loan Agreement, the Guarantors hereby agree with the Agents, for the ratable benefit of the Lenders, as follows: 

        1.    Defined Terms.    

        (a)   Unless
otherwise defined herein, terms defined in the Senior Subordinated Loan Agreement and used herein shall have the meanings given to them in the Senior Subordinated
Loan Agreement. 

        (b)   As
used herein, the term "Closing Time" means 24:00 (German time) on the Closing Date. 

        (c)   As
used herein, the term "Guaranteed Obligations" means the collective reference to the unpaid principal of and interest
on the Loans (including, without limitation, PIK Interest Amounts and interest accruing at the then applicable rate provided in the Senior Subordinated Loan Agreement after the filing of any petition
in bankruptcy or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding) and any other Obligations of the Borrower to the Agents or any Lender, whether direct or indirect, absolute or contingent, due or to become due, or now existing
or hereafter incurred, which may arise under, out of or in connection with, the Senior Subordinated Loan Agreement, this Agreement, the other Credit Documents, or any other document made, delivered or
given in connection with any of the foregoing, in each case whether on account of principal, interest, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and
disbursements 

 

of
counsel to the Agents or to the Lenders that are required to be paid by the Borrower or any Guarantor pursuant to the terms of any of the foregoing agreements). 

        (d)   References
to "Lenders" in this Guarantee shall be deemed to include Assignees. 

        (e)   The
words "hereof", "herein",
"hereunder" and words of similar import when used in this Guarantee shall refer to this Guarantee as a whole and not to any particular provision of this
Guarantee, and Section references are to Sections of this Guarantee unless otherwise specified. 

        (f)    The
meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 

        2.    Guarantee.    

        (a)   Subject
to the provisions of Sections 2(b) and 10 and effective immediately upon the Closing Time, each of the Guarantors hereby, jointly and severally, unconditionally
and irrevocably, guarantees to each of the Lenders and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by the Borrower when due
(whether at the stated maturity, by acceleration or otherwise) of the Guaranteed Obligations. 

        (b)   Anything
herein or in any other Credit Document to the contrary notwithstanding, the maximum liability of each Guarantor hereunder and under the other Credit Documents
shall in no event exceed the amount that can be guaranteed by such Guarantor under applicable federal and state laws relating to the insolvency of debtors. 

        (c)   Each
Guarantor further agrees to pay any and all expenses (including, without limitation, all fees and disbursements of counsel) that may be paid or incurred by any
Agent or any Lender in enforcing, or obtaining advice of counsel in respect of, any rights with respect to, or collecting, any or all of the Guaranteed Obligations and/or enforcing any rights with
respect to, or collecting against, such Guarantor under this Guarantee. This Guarantee shall remain in full force and effect until the Guaranteed Obligations are paid in full. 

        (d)   Each
Guarantor agrees that the Guaranteed Obligations may at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without
impairing this Guarantee or affecting the rights and remedies of the Agents or any Lender hereunder. 

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

        (f)    Each
Guarantor agrees that whenever, at any time, or from time to time, it shall make any payment to the Agents or any Lender on account of its liability hereunder, it
will notify the Agents in writing that such payment is made under this Guarantee for such purpose. 

        3.    Right of Contribution.    Each Guarantor hereby agrees to the extent that a Guarantor shall have paid more than
its proportionate share of any payment hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder who has not paid its proportionate
share of such payment. Each Guarantor's right of contribution shall be subject to the terms and conditions of Section 5 hereof. The provisions of this Section 3 shall in no respect limit 

2

 

the
obligations and liabilities of any Guarantor to the Administrative Agent, the other Agents and the Lenders, and each Guarantor shall remain liable to the Administrative Agent, the other Agents and
the Lenders for the full amount guaranteed by such Guarantor hereunder. 

        4.    Right of Set-off.    Each Guarantor hereby irrevocably authorizes the Agents and each Lender at any
time and from time to time following (a) the occurrence and during the continuance of an Event of Default and (b) the declaration by the Agents or the Lenders, as specified in
Section 11 of the Senior Subordinated Loan Agreement, that the Loans are due and payable pursuant to the provisions of said Section 11, without notice to such Guarantor or any other
Guarantor, any such notice being expressly waived by each Guarantor, upon any amount becoming due and payable by such Guarantor hereunder (whether at stated maturity, by acceleration or otherwise) to
set-off and appropriate and apply any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent, due or to become due, at any time held or owing by the Agents or such Lender to or for the credit or the account of such
Guarantor. The Agents and each Lender shall notify such Guarantor promptly of any such set-off and the appropriation and application made by the Agents or such Lender,  provided that the failure to give
such notice shall not affect the validity of such set-off and application. 

        5.    No Subrogation.    Notwithstanding any payment or payments made by any of the Guarantors hereunder or any
set-off or appropriation and application of funds of any of the Guarantors by the Agents or any Lender, no Guarantor shall be entitled to be subrogated to any of the rights of the Agents
or any Lender against the Borrower or any other Guarantor or any collateral security or guarantee or right of offset held by the Agents or any Lender for the payment of the Guaranteed Obligations, nor
shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Borrower or any other Guarantor in respect of payments made by such Guarantor hereunder, until all amounts
owing to the Agents and the Lenders by the Borrower on account of the Guaranteed Obligations are paid in full. If any amount shall be paid to any Guarantor on account of such subrogation rights at any
time when all the Guaranteed Obligations shall not have been paid in full, such amount shall be held by such Guarantor in trust for the Agents and the Lenders, segregated from other funds of such
Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the Agents in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Agents, if required),
to be applied against the Guaranteed Obligations, whether due or to become due, in such order as the Agents may determine. 

        6.    Net payments; Tax Gross-Up.    

        (a)   All
payments made by a Guarantor under this Guarantee shall be made free and clear of, and without deduction or withholding for or on account of, any current or future
income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority,
excluding (i) net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the Agents or any Lender and (ii) any taxes imposed on the Agents or any Lender as a
result of a current or former connection between the Agents or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof
or therein (other than any such connection arising solely from the Agents or such Lender having executed, delivered or performed its obligations or received a payment under, or enforced, this
Guarantee). If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings ("Non-Excluded Taxes") are required to be withheld from any
amounts payable to the Agents or any Lender hereunder, the amounts so payable to the Agents or such Lender shall be increased to the extent necessary to yield to the Agents or such Lender (after
payment of all Non-Excluded Taxes) interest or any such other amounts payable under this Guarantee at the rates or in the amounts specified in this Guarantee; provided, however, that a
Guarantor shall not be required to increase any such amounts payable to any Lender that is not 

3

 

created
or organized under the laws of the United States of America or a state thereof (a "Non-U.S. Lender") if such Lender fails to comply with the requirements of paragraph (b) of
this Section 5. Whenever any Non-Excluded Taxes are payable by any Guarantor, as promptly as possible thereafter, such Guarantor shall send to the Agents for its own account or for
the account of such Lender, as the case may be, a certified copy of an original official receipt (or other evidence acceptable to such Lender, acting reasonably) received by such Guarantor showing
payment thereof. If a Guarantor fails to pay any Non-Excluded Taxes when due to the appropriate taxing authority or fails to remit to the Agents the required receipts or other required
documentary evidence, such Guarantor shall indemnify the Agents and the Lenders for any incremental taxes, interest, costs or penalties that may become payable by the Administrative Agent or any
Lender as a result of any such failure. The agreements in this Section 5 shall survive the termination of this Guarantee and the payment of the Loans and all other amounts payable hereunder. 

        (b)   Each
Non-U.S. Lender shall: 

        (i)    deliver
to each Guarantor and the Agents two copies of either (x) in the case of Non-U.S. Lender claiming exemption from U.S. Federal withholding tax
under Section 871(h) or 881(c) of the Internal Revenue Code with respect to payments of "portfolio interest", United States Internal Revenue Service Form W-8BEN, together
with a certificate representing that such Non-U.S. Lender is not a bank for purposes of Section 881(c) of the Internal Revenue Code, is not a 10-percent shareholder
(within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of such Guarantor and is not a controlled foreign corporation related to such Guarantor (within the meaning of
Section 864(d)(4) of the Internal Revenue Code)), or (y) Internal Revenue Servie Form W-8BEN or Form W-8ECI, in each case properly completed and
duly executed by such Non-U.S. Lender claiming complete exemption from, or reduced rate of, U.S. Federal withholding tax on payments by any Guarantor under this Guarantee; 

        (ii)   deliver
to such Guarantor and the Agents two further copies of any such form or certification (or any applicable successor form) on or before the date that any such
form or certification expires or becomes obsolete and after the occurrence of any event requiring a change in the most recent form previously delivered by it to such Guarantor; and 

        (iii)  obtain
such extensions of time for filing and complete such forms or certifications as may reasonably be requested in writing by any Guarantor or the Agents; 

        unless,
in any such case, any change in treaty, law or regulation, has occurred prior to the date on which any such delivery would otherwise be required that renders any such form
inapplicable or would prevent such Lender from duly completing and delivering any such form with respect to it and such Lender so advises the Borrower and the Administrative Agent. Each Person that
shall become a Participant pursuant to Section 13.6 of the Senior Subordinated Loan Agreement or a Lender pursuant to Section 13.6 of the Senior Subordinated Loan Agreement shall, upon
the effectiveness of the related transfer, be required to provide all the forms and statements required pursuant to this Section 5(b), provided that in the case of a Participant such
Participant shall furnish all such required forms and statements to the Lender from which the related participation shall have been purchased. Notwithstanding anything to the contrary, no Lender or
Participant shall be required to deliver any form or certification that it is not legally able to deliver. 

        (c)   A
Guarantor shall not be required to indemnify any Non-U.S. Lender, or to pay any additional amounts to any Non-U.S. Lender, in respect of U.S.
Federal withholding tax pursuant to paragraph (a) above to the extent that (i) the obligation to withhold amounts with respect to U.S. Federal withholding tax existed on the date such
Non-U.S. Lender became a party to the Senior Subordinated Loan Agreement (or, in the case of a Participant that is not an entity organized under the laws of the United States of America or
a state thereof (a "Non-U.S. Participant"), on the date such Participant became a Participant under the Senior Subordinated Loan Agreement); provided, 

4

 

however,
that this clause (i) shall not apply to the extent that (x) the indemnity payments or additional amounts any Lender (or Participant) would be entitled to receive (without regard
to this clause (i)) do not exceed the indemnity payment or additional amounts that the person making the assignment, participation or transfer to such Lender (or Participant) would have been
entitled to receive in the absence of such assignment, participation or transfer, or (y) such assignment, participation or transfer had been requested by the Borrower or such Guarantor,
(ii) the obligation to pay such additional amounts would not have arisen but for a failure by such Non-U.S. Lender or Non-U.S. Participant to comply with the provisions
of paragraph (b) above or (iii) any of the representations or certifications made by a Non-U.S. Lender or Non-U.S. Participant pursuant to paragraph (b)
above are incorrect at the time a payment hereunder is made, other than by reason of any change in treaty, law or regulation having effect after the date such representations or certifications were
made. 

        (d)   If
a Guarantor determines in good faith that a reasonable basis exists for contesting any taxes for which indemnification has been demanded hereunder, the relevant
Lender or the Agents, as applicable, shall cooperate with such Guarantor in challenging such taxes at such Guarantor's expense if so requested by such Guarantor. If any Lender or the Agents, as
applicable, receives a refund of a tax for which a payment has been made by a Guarantor pursuant to this Agreement, which refund in the good faith judgment of such Lender or Agents, as the case may
be, is attributable to such payment made by such Guarantor, then the Lender or the Agents, as the case may be, shall reimburse such Guarantor for such amount (together with any interest received
thereon) as the Lender or the Agents, as the case may be, determines to be the proportion of the refund as will leave it, after such reimbursement, in no better or worse position than it would have
been in if the payment had not been required. A Lender or the Agents shall claim any refund that it determines is available to it, unless it concludes in its reasonable discretion that it would be
adversely affected by making such a claim. Neither the Lender nor the Agents shall be obliged to disclose any information regarding its tax affairs or computations to any Guarantor in connection with
this paragraph (d) or any other provision of this Section 5. 

        7.    Amendments, etc. with Respect to the Obligations; Waiver of Rights.    Each Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Guaranteed
Obligations made by the Agents or any Lender may be rescinded by such party and any of the Guaranteed Obligations continued, and the Guaranteed Obligations, or the liability of any other party upon or
for any part thereof or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Agents or any Lender, and the Senior Subordinated Loan Agreement, the other Credit Documents and any other documents executed and
delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Agents (or the Required Lenders, as the case may be) may deem advisable from time to
time, and any collateral security, guarantee or right of offset at any time held by the Agents or any Lender for the payment of the Guaranteed Obligations may be sold, exchanged, waived, surrendered
or released. Neither the Agents nor any Lender shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Guaranteed Obligations or for this
Guarantee or any property subject thereto. When making any demand hereunder against any of the Guarantors, the Agents or any Lender may, but shall be under no obligation to, make a similar demand on
the Borrower or any Guarantor or guarantor, and any failure by the Agents or any Lender to make any such demand or to collect any payments from the Borrower or any such Guarantor or guarantor or any
release of the Borrower or such Guarantor or guarantor shall not relieve any of the Guarantors in respect of which a demand or collection is not made or any of the Guarantors not so released of their
several obligations or liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of the 

5

 

Agents
or any Lender against any of the Guarantors. For the purposes hereof, "demand" shall include the commencement and continuance of any legal proceedings. 

        8.    Guarantee Absolute and Unconditional.    Each Guarantor waives any and all notice of the creation, contraction,
incurrence, renewal, extension, amendment, waiver or accrual of any of the Guaranteed Obligations, and notice of or proof of reliance by the Agents or any Lender upon this Guarantee or
acceptance of this Guarantee, the Guaranteed Obligations or any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended, waived or accrued, in
reliance upon this Guarantee; and all dealings between the Borrower and any of the Guarantors, on the one hand, and the Agents and the Lenders, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon this Guarantee. Each Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the
Borrower or any of the Guarantors with respect to the Guaranteed Obligations. Each Guarantor understands and agrees that this Guarantee shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity, regularity or enforceability of the Senior Subordinated Loan Agreement or any other Credit Document, any of the Guaranteed Obligations
or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Agents or any Lender, (b) any defense,
set-off or counterclaim (other than a defense of payment or performance) that may at any time be available to or be asserted by the Borrower against the Agents or any Lender or
(c) any other circumstance whatsoever (with or without notice to or knowledge of the Borrower or such Guarantor) that constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrower for the Guaranteed Obligations, or of such Guarantor under this Guarantee, in bankruptcy or in any other instance. When pursuing its rights and remedies hereunder against any
Guarantor, the Agents and any Lender may, but shall be under no obligation to, pursue such rights and remedies as it may have against the Borrower or any other Person or against any collateral
security or guarantee for the Guaranteed Obligations or any right of offset with respect thereto, and any failure by the Agents or any Lender to pursue such other rights or remedies or to collect any
payments from the Borrower or any such other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Borrower or any such
other Person or any such collateral security, guarantee or right of offset, shall not relieve such Guarantor of any liability hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Agents and the Lenders against such Guarantor. This Guarantee shall remain in full force and effect and be binding in accordance with and to
the extent of its terms upon each Guarantor and the successors and assigns thereof, and shall inure to the benefit of the Agents and the Lenders, and their respective successors, indorsees,
transferees and assigns, until all the Guaranteed Obligations and the obligations of each Guarantor under this Guarantee shall have been satisfied by payment in full. 

        9.    Reinstatement.    This Guarantee shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Guaranteed Obligations is rescinded or must otherwise be restored or returned by the Agents or any Lender upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of the Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Borrower
or any Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made. 

        10.    Payments.    Each Guarantor hereby guarantees that payments hereunder will be paid to the Agents without
set-off or counterclaim in Dollars or Euros, as applicable, at the Administrative Agent's Office. 

6

   
        11.    Terms of Subordination.    

        (a)   Agreement To Subordinate.Each Guarantor agrees, and each Agent, Lender and holder of any Note, by its acceptance thereof,
as the case may be, also agrees, that the Obligations of the Guarantors pursuant to this Guarantee (the "Guarantor Bridge Obligations") are subordinated
in right of payment, to the extent and in the manner provided in this Section 10, to the prior payment in full in cash or Cash Equivalents (other than those cash equivalents referred to in
clause (iii)(B) of the definition of "Cash Equivalents" in the Senior Subordinated Loan Agreement) of all Senior Indebtedness of each Guarantor, whether outstanding on the date of this
Agreement or incurred thereafter, and that the subordination is for the benefit of and enforceable by the holders of such Senior Indebtedness. The Guarantor Bridge Obligations of each Guarantor shall
in all respects rank pari passu with all other Senior Subordinated Indebtedness of such Guarantor and shall rank senior to all existing and future Subordinated Indebtedness of such Guarantor; and only
Indebtedness of each Guarantor that is Senior Indebtedness of such Guarantor shall rank senior to the Guarantor Bridge Obligations of such Guarantor in accordance with the provisions set forth herein.
All provisions of this Section 10 shall be subject to Section 10(l). 

        (b)   Liquidation, Dissolution, Bankruptcy. Upon any distribution to creditors of a Guarantor in a liquidation or dissolution
of such Guarantor or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating to such Guarantor or its property, an assignment for the benefit of creditors or any
marshaling of such Guarantor's assets and liabilities, the holders of Senior Indebtedness of the Guarantor shall be entitled to receive payment in full in cash or Cash Equivalents of such Senior
Indebtedness and all outstanding Letter of Credit Obligations thereunder shall be fully cash collateralized before the Lenders will be entitled to receive any payment with respect to the Guarantor
Bridge Obligations, and until all Senior Indebtedness of the Guarantor is paid in full in cash or Cash Equivalents (other than those cash equivalents referred to in clause (iii)(B) of the
definition of "Cash Equivalents" in the Senior Subordinated Loan Agreement), any distribution to which the Lenders would be entitled shall be made to the holders of such Senior Indebtedness (except
that Lenders may receive shares of stock and any debt securities that are subordinated at least to the same extent as the Guarantor Bridge Obligations to (a) such Senior Indebtedness and
(b) any securities issued in exchange for such Senior Indebtedness). 

        (c)   Default on Senior Indebtedness. No Guarantor shall make any payment upon or in respect of the Guarantor Bridge
Obligations (except that Lenders may receive shares of stock and any debt securities that are subordinated at least to the same extent as the Guarantor Bridge Obligations to (a) Senior
Indebtedness of such Guarantor and (b) any securities issued in exchange for such Senior Indebtedness) if (i) a default in the payment of the principal of, premium, if any, or interest
on, or of unreimbursed amounts under drawn letters of credit or in respect of bankers' acceptances or fees relating to letters of credit or bankers' acceptances constituting Designated Senior
Indebtedness occurs and is continuing beyond any applicable period of grace in the indenture, agreement or other document governing such Designated Senior Indebtedness (a
"payment default") or (ii) any other default occurs and is continuing with respect to Designated Senior Indebtedness that permits holders of the
Designated Senior Indebtedness as to which such default relates to accelerate its maturity without further notice (except such notice as may be required to effect such acceleration) or the expiration
of any applicable grace periods (a "non-payment default") and the Administrative Agent receives a notice of such default (a
"Payment Blockage Notice") from a representative of holders of any such Designated Senior Indebtedness. Payments on the Guarantor Bridge Obligations,
including any missed payments, may and shall be resumed (a) in the case of a payment default, upon the date on which such default is cured or waived or shall have ceased to exist or such
Designated Senior Indebtedness shall have been discharged or paid in full in cash or Cash Equivalents (other than those cash equivalents referred to in clause (iii)(B) of the definition of
"Cash Equivalents" in the Senior Subordinated Loan Agreement) and all outstanding Letter of Credit obligations thereunder shall have been fully cash collateralized and 

7

 

(b) in
case of a nonpayment default, the earlier of (x) the date on which such nonpayment default is cured or waived or shall have ceased to exist, (y) 179 days after the
date on which the applicable Payment Blockage Notice is received (each such period, the "Payment Blockage Period") or (z) the date such Payment
Blockage Period shall be terminated by written notice to the Administrative Agent from the requisite holders of such Designated Senior Indebtedness necessary to terminate such period or from their
Representative. No new Payment Blockage Period may be commenced unless and until 365 days have elapsed since the effectiveness of the immediately preceding Payment Blockage Notice. However, if
any Payment Blockage Notice within such 365-day period is given by or on behalf of any holders of Designated Senior Indebtedness (other than the administrative agent under the Senior
Secured Credit Facilities), the administrative agent under the Senior Secured Credit Facilities may give another Payment Blockage Notice within such period. In no event, however, shall the total
number of days during which any Payment Blockage Period or Periods is in effect exceed 179 days in the aggregate during any 365 consecutive day period. No nonpayment default that existed or was
continuing on the date of delivery of any Payment Blockage Notice to the Administrative Agent shall be, or be made, the basis for a subsequent Payment Blockage Notice unless such default shall have
been cured or waived for a period of not less than 90 days. 

        (d)   Acceleration of Payment of Loans. If payment of the Loans is accelerated because of an Event of Default, the Guarantor or
the Administrative Agent shall promptly notify the holders of Designated Senior Indebtedness (or their Representative) of the acceleration. If any Designated Senior Indebtedness is outstanding, the
Guarantor shall not pay the Guarantor Bridge Obligations until five Business Days after such holders or the Representative of the Designated Senior Indebtedness receive notice of such acceleration
and, thereafter, shall pay the Loans or other Guarantor Bridge Obligations only if this Section 10 otherwise permits payment at that time. 

        (e)   When Distribution Must Be Paid Over. If a distribution is made to Lenders (including by way of set off) that because of
this Section 10 should not have been made to them, the Lenders who receive the distribution shall hold it in trust for holders of Senior Indebtedness of the relevant Guarantor and pay it over
to them as their interests may appear. 

        (f)    Subrogation. After all Senior Indebtedness of the Guarantors is paid in full and until the Guarantor Bridge Obligations
of the Guarantors are paid in full, Lenders shall be subrogated to the rights of holders of such Senior Indebtedness to receive distributions applicable to such Senior Indebtedness. A distribution
made under this Section 10 to holders of such Senior Indebtedness which otherwise would have been made to Lenders is not, as between the applicable Guarantor and Lenders, a payment by such
Guarantor on such Senior Indebtedness. 

        (g)   Relative Rights. This Section 10 defines the relative rights of Lenders and holders of Senior Indebtedness of the
Guarantors. Nothing in this Agreement shall: 

        (1)   impair,
as between each Guarantor and Lenders, the obligation of each Guarantor, which is absolute and unconditional, to pay principal of, and interest on, the Loans and
the Guarantor Bridge Obligations of such Guarantor in accordance with their terms; or 

        (2)   prevent
the Administrative Agent or any Lender from exercising its available remedies upon a Default, subject to the rights of holders of Senior Indebtedness of each
Guarantor to receive distributions otherwise payable to Lenders. 

        (h)   Subordination May Not Be Impaired by any Guarantor. No right of any holder of Senior Indebtedness of any Guarantor to
enforce the subordination of the Guarantor Bridge Obligations shall be impaired by any act or failure to act by any Guarantor or by its failure to comply with this Guarantee. 

        (i)    Rights of Agents. Notwithstanding Section 10(c), the Administrative Agent (but not any Credit Party) may continue
to make payments on the Guarantor Bridge Obligations and shall not be charged 

8

 

with
knowledge of the existence of facts that would prohibit the making of any such payments unless, not less than two Business Days prior to the date of such payment, the Administrative Agent
receives notice satisfactory to it that payments may not be made under this Section 10. Any Guarantor, a Representative or a holder of Senior Indebtedness of any Guarantor may give the notice;  provided,
however, that, if an issue of Senior Indebtedness of any Guarantor has a Representative, only the Representative may give the notice.
 

        The
Agents in their individual or any other capacities may hold Senior Indebtedness of any Guarantor with the same rights they would have if they were not Agents. The Agents shall each
be entitled to all the rights set forth in this Section 10 with respect to any Senior Indebtedness of any Guarantor which may at any time be held by them, to the same extent as any other holder
of such Senior Indebtedness; and nothing in Section 12 of the Senior Subordinated Loan Agreement shall deprive any Agent of any of its rights as such holder. Nothing in this Section 10
shall apply to claims of, or payments to, any Agent under or pursuant to Section 12.7 of the Senior Subordinated Loan Agreement. 

        (j)    Distribution or Notice to Representative. Whenever a distribution is to be made or a notice given to holders of Senior
Indebtedness of any Guarantor, the distribution may be made and the notice may be given to their Representative (if any). 

        (k)   Section 10 Not To Prevent Events of Default or Limit Right To Accelerate. The failure to make a payment of the
Guarantor Bridge Obligations by reason of any provision in this Section 10 shall not be construed as preventing the occurrence of a Default. Nothing in this Section 10 shall have any
effect on the right of the Lenders or the Administrative Agent to accelerate the maturity of the Loans or the other Bridge Obligations. 

        (l)    Agent Entitled To Rely. Upon any payment or distribution pursuant to this Section 10, the Administrative Agent and
the Lenders shall be entitled to rely (i) upon any order or decree of a court of competent jurisdiction in which any proceedings of the nature referred to in Section 10(b) are pending,
(ii) upon a certificate of the Administrative Agent or agent or other Person making such payment or distribution to the Administrative Agent or to the Lenders or (iii) upon the
Representatives for the holders of Senior Indebtedness of any Guarantor for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of such Senior
Indebtedness and other Indebtedness of such Guarantor, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this
Section 10. In the event that the Administrative Agent determines, in good faith, that evidence is required with respect to the right of any Person as a holder of Senior Indebtedness of any
Guarantor to participate in any payment or distribution pursuant to this Section 10, the Administrative Agent may request such Person to furnish evidence to the reasonable satisfaction of the
Administrative Agent as to the amount of such Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and other facts
pertinent to the rights of such Person under this Section 10, and, if such evidence is not furnished, the Administrative Agent may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment. The provisions of Section 12 of the Senior Subordinated Loan Agreement shall be applicable to all actions or omissions of
actions by the Administrative Agent pursuant to this Section 10. 

        (m)  Administrative Agent To Effectuate Subordination. Each Lender authorizes and directs the Administrative Agent on its
behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination between the Lenders and the holders of Senior Indebtedness of each Guarantor as provided in
this Section 10 and appoints the Administrative Agent as attorney-in-fact for any and all such purposes. 

        (n)   Administrative Agent Not Fiduciary for Holders of Senior Indebtedness. The Administrative Agent shall not be deemed to
owe any fiduciary duty to the holders of Senior Indebtedness of any 

9

 

Guarantor
and shall not be liable to any such holders if it shall mistakenly pay over or distribute to the Lenders or such Guarantor or any other Person, money or assets to which any holders of Senior
Indebtedness of such Guarantor shall be entitled by virtue of this Section 10 or otherwise; provided that this clause (n) shall not impair
the rights of holders of Senior Indebtedness under this Section 10 as against the Lenders and the Guarantor. 

        (o)   Reliance by Holders of Senior Indebtedness on Subordination Provisions. Each Lender acknowledges and agrees that the
foregoing subordination provisions are, and are intended to be, an inducement and a consideration to each holder of any Senior Indebtedness of the Guarantor, whether such Senior Indebtedness was
created or acquired before or after the Closing Date, to acquire and continue to hold, or to continue to hold, such Senior Indebtedness and such holder of such Senior Indebtedness shall be deemed
conclusively to have relied on such subordination provisions in acquiring and continuing to hold, or in continuing to hold, such Senior Indebtedness. 

        (p)   Agents' Compensation Not Prejudiced. Nothing in this Section 10 shall apply to amounts due to the Agents pursuant
to the Senior Subordinated Loan Agreement. 

        12.    Representations and Warranties; Covenants.    

        (a)   Each
Guarantor hereby represents and warrants that the representations and warranties set forth in Section 8 of the Senior Subordinated Loan Agreement as they
relate to such Guarantor or the Credit Documents to which such Guarantor is a party, each of which is hereby incorporated herein by reference, are true and correct, and the Agents and each Lender
shall be entitled to rely on each of them as if they were fully set forth herein. 

        (b)   Each
Guarantor hereby covenants and agrees with the Agents and each Lender that, from and after the date of this Guarantee until the Guaranteed Obligations are paid in
full, such Guarantor shall take, or shall refrain from taking, as the case may be, all actions that are necessary to be taken or not taken so that no violation of any provision, covenant or agreement
of the Senior Subordinated Loan Agreement, and so that no Default or Event of Default, is caused by any act or failure to act of such Guarantor or any of its Subsidiaries. 

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

        14.    Notices.    All notices, requests and demands pursuant hereto shall be made in accordance with
Section 13.2 of the Senior Subordinated Loan Agreement. All communications and notices hereunder to each Guarantor shall be given to it in care of the Borrower at the Borrower's address set
forth in Section 13.2 of the Senior Subordinated Loan Agreement. 

        15.    Counterparts.    This Guarantee may be executed by one or more of the Guarantors on any number of separate
counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the counterparts
of this Guarantee signed by all the Guarantors shall be lodged with the Agents and the Borrower. 

        16.    Severability.    Any provision of this Guarantee that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or 

10

 

unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. 

        17.    Integration.    This Guarantee represents the agreement of each Guarantor with respect to the subject matter
hereof and there are no promises or representations by the Agents or any Lender relative to the subject matter hereof not reflected herein. 

        18.    Amendments in Writing; No Waiver; Cumulative Remedies.    

        (a)   None
of the terms or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the affected
Guarantor(s) and the Agents in accordance with Section 13.1 of the Senior Subordinated Loan Agreement. 

        (b)   Neither
the Agents nor any Lender shall by any act (except by a written instrument pursuant to Section 17(a)), delay, indulgence, omission or otherwise be deemed
to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay
in exercising, on the part of the Agents or any Lender, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Agents or any Lender of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy that the Agents or such Lender would otherwise have on any future occasion. 

        (c)   The
rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law. 

        19.    Section Headings.    The Section headings used in this Guarantee are for convenience of reference only and are
not to affect the construction hereof or be taken into consideration in the interpretation hereof. 

        20.    Successors and Assigns.    This Guarantee shall be binding upon the successors and assigns of each Guarantor
and shall inure to the benefit of the Agents and the Lenders and their successors and assigns, except that no Guarantor may assign, transfer or delegate any of its rights or obligations under this
Agreement without the prior written consent of the Agents; provided, however, that to the extent any Guarantor is released from its obligations under
the Senior Guarantee as permitted by the Senior Secured Credit Agreement, such Guarantor shall be released from its obligations under this Guarantee without further action. 

        21.    Release.    All obligations of any Guarantor under this Guarantee shall be automatically and unconditionally
released and discharged upon (i) any sale, transfer, exchange or other disposition of all of the Capital Stock in, or all or substantially all the assets of, such Guarantor in a transaction
permitted under the Senior Subordinated Loan Agreement, (ii) the release or discharge of (A) such Guarantor's obligations under the Senior Guarantee as permitted by the Senior Secured
Credit Agreement or (B) the Guaranteed Obligations or (iii) if the Borrower properly designates any Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary. In connection
with any such release, the Administrative Agent shall execute and deliver to any Guarantor, at such Guarantor's expense, all documents that such Guarantor shall reasonably request to evidence such
termination or release. Any execution and delivery of documents pursuant to the preceding sentence of this Section 21 shall be without recourse to or warranty by the Administrative Agent. 

        22.    Additional Guarantors.    Pursuant to Section 9.10 of the Senior Subordinated Loan Agreement, the
Borrower will cause each Person who guarantees the Obligations of the Borrower under the Senior Secured Credit Facilities to execute a supplement to this Guarantee substantially in the form of Annex A
hereto, (a "Guarantee Supplement"), in order to become a Guarantor hereunder 

11

 

with
the same force and effect as if originally named as a Guarantor herein. The execution and delivery of any Guarantee Supplement shall not require the consent of any other Guarantor hereunder. The
rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any new Guarantor as a party to this Guarantee. 

        23.    WAIVER OF JURY TRIAL.    EACH GUARANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE, ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

        24.    Submission to Jurisdiction; Waivers.    Each Guarantor hereby irrevocably and unconditionally: 

        (a)   submits
for itself and its property in any legal action or proceeding relating to this Guarantee, any other Credit Document, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts of the State of New York, the courts of the United States of America for the Southern District of New
York and appellate courts from any thereof; 

        (b)   consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

        (c)   agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar
form of mail), postage prepaid, to such Guarantor at its address referred to in Section 13 or at such other address of which the Agents shall have been notified pursuant thereto; 

        (d)   agrees
that nothing herein shall affect the right of the Agents or any Lender to effect service of process in any other manner permitted by law or shall limit the right
of the Agents or any Lender to sue in any other jurisdiction; and 

        (e)   waives,
to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 23
any special, exemplary, punitive or consequential damages. 

        25.    GOVERNING LAW.    THIS GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

12

   
        IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee to be duly executed and delivered by its duly authorized officer as of the day and year first above written. 

	 
	 	 
	 
	 

	 	 	ALPHAGARY CORPORATION,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

ADVANTIS TECHNOLOGIES, INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

CERAMTEC NORTH AMERICA INNOVATIVE CERAMIC ENGINEERING CORPORATION,
	

 	
 	

by	

/s/  WALTER DOLLMAN      

	 	 	 	Name:	Walter Dollman
	 	 	 	Title:	President/CEO
	

 	
 	

CHEMETALL CHEMICAL PRODUCTS INC.,
	

 	
 	

by	

/s/  PHILIP E. KELLY      

	 	 	 	Name:	Philip E. Kelly
	 	 	 	Title:	President
	

 	
 	

CHEMETALL CORP.,
	

 	
 	

by	

/s/  PHILIP E. KELLY      

	 	 	 	Name:	Philip E. Kelly
	 	 	 	Title:	President
	

 	
 	

CHEMETALL FOOTE CORP.,
	

 	
 	

by	

/s/  PAUL J. SEAMAN      

	 	 	 	Name:	Paul J. Seaman
	 	 	 	Title:	Vice President
	

 	
 	

CHEMICAL SPECIALTIES, INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

COMPUGRAPHICS U.S.A. INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	 	 	 	 	 

13

 

	

 	
 	

CYANTEK CORPORATION,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

ELECTROCHEMICALS INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

EXSIL, INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

FOOTE CHILE HOLDING COMPANY,
	

 	
 	

by	

/s/  PAUL J. SEAMAN      

	 	 	 	Name:	Paul J. Seaman
	 	 	 	Title:	Vice President
	

 	
 	

LUREX, INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

OAKITE PRODUCTS, INC.,
	

 	
 	

by	

/s/  GREGORY V. POFF      

	 	 	 	Name:	Gregory V. Poff
	 	 	 	Title:	Vice President
	

 	
 	

ROCKWOOD AMERICA INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

ROCKWOOD SPECIALTIES INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

ROCKWOOD PIGMENTS NA, INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	 	 	 	 	 

14

 

	

 	
 	

RS FUNDING CORPORATION,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

RW HOLDING CORP.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

SACHTLEBEN CORPORATION,
	

 	
 	

by	

/s/  PAUL FRAZIER      

	 	 	 	Name:	Paul Frazier
	 	 	 	Title:	Vice President
	

 	
 	

SOUTHERN CLAY PRODUCTS, INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

SOUTHERN COLOR N.A., INC.,
	

 	
 	

by	

/s/  MICHAEL W. VALENTE      

	 	 	 	Name:	Michael W. Valente
	 	 	 	Title:	Assistant Secretary
	

 	
 	

CREDIT SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

as Administrative Agent and Lead Arranger
	

 	
 	

by	

/s/  DAVID J. DODD      

	 	 	 	Name:	David J. Dodd
	 	 	 	Title:	Associate
	

 	
 	

by	

/s/  ALEXIS F. MAGED      

	 	 	 	Name:	Alexis F. Maged
	 	 	 	Title:	Director
	

 	
 	

GOLDMAN SACHS CREDIT PARTNERS L.P., as

Syndication Agent and Lead Arranger
	

 	
 	

by	

/s/  WILLIAM W. ARCHER      

	 	 	 	Name:	William W. Archer
	 	 	 	Title:	Managing Director
	 	 	 	 	 

15

 

	

 	
 	

UBS SECURITIES LLC, as

Lead Arranger
	

 	
 	

by	

/s/  ERIC H. COOMBS      

	 	 	 	Name:	Eric H. Coombs
	 	 	 	Title:	Executive Director
	

 	
 	

by	

/s/  WALTER JERVEY      

	 	 	 	Name:	Walter Jervey
	 	 	 	Title:	Director and Counsel

Region Americas Legal
	

 	
 	

UBS AG, Stamford Branch, as

Documentation Agent
	

 	
 	

by	

/s/  WILFRED V. SAINT      

	 	 	 	Name:	Wilfred V. Saint
	 	 	 	Title:	Director

Banking Products Services, US
	

 	
 	

by	

/s/  JOSELIN FERNANDES      

	 	 	 	Name:	Joselin Fernandes
	 	 	 	Title:	Associate Director

Banking Products Services, US

16

   ANNEX A

TO THE GUARANTEE  

GUARANTEE
SUPPLEMENT 

        SUPPLEMENT
NO.    dated as of                        , to the Guarantee (the "Guarantee") dated as of July 30, 2004, among each
of the subsidiaries listed on the signature pages thereof (each such subsidiary individually, a "Guarantor" and, collectively, the
"Guarantors" and Credit Suisse First Boston, acting through its Cayman Islands Branch, Goldman Sachs Credit Partners L.P. and UBS Securities LLC, as
Agents (in such capacity, the "Agents") for the lenders (the "Lenders") from time to time parties to the
Senior Subordinated Loan Agreement. 

        A.
Reference is made to (a) the Senior Subordinated Loan Agreement dated as of July 30, 2004 (as amended, supplemented or otherwise modified from time to time, the
"Senior Subordinated Loan Agreement"), among Rockwood Specialties Group, Inc., a Delaware corporation (the
"Borrower"), the Lenders from time to time party thereto, Credit Suisse First Boston, acting through its Cayman Islands Branch, as Administrative Agent,
Goldman Sachs Credit Partners L.P., as Syndication Agent (the "Syndication Agent"), UBS AG, Stamford Branch, as Documentation Agent (the
"Documentation Agent"), Credit Suisse First Boston, acting through its Cayman Islands Branch, UBS Securities LLC and Goldman Sachs Credit Partners L.P.,
as Lead Arrangers (in such capacity, the "Lead Arrangers") and (b) the Guarantee. 

        B.
Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Guarantee and the Senior Subordinated Loan Agreement. 

        C.
The Guarantors have entered into the Guarantee in order to induce the Lenders to make the Loans. Section 9.10 of the Senior Subordinated Loan Agreement and Section 21 of
the Guarantee provide that additional Subsidiaries may become Guarantors under the Guarantee by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the
"New Guarantor") is executing this Supplement in accordance with the requirements of the Senior Subordinated Loan Agreement to become a Guarantor under
the Guarantee in order to induce the Lenders to continue to make the Loans and as consideration for Loans previously made. 

        Accordingly,
the Agents and the New Guarantor agree as follows: 

        SECTION
1. In accordance with Section 21 of the Guarantee, the New Guarantor by its signature below becomes a Guarantor under the Guarantee with the same force and effect as if
originally named therein as a Guarantor and the New Guarantor hereby (a) agrees to all the terms and provisions of the Guarantee applicable to it as a Guarantor thereunder (including the
Subordination provisions in Section 10) and (b) represents and warrants that the representations and warranties made by it as a Guarantor thereunder are true and correct on and as of the
date hereof. Each reference to a Guarantor in the Guarantee shall be deemed to include the New Guarantor. The Guarantee is hereby incorporated herein by reference. 

        SECTION
2. Subject to the provisions of Section 2(b) and 10 of the Guarantee, the New Guarantor hereby, jointly and severally with the other Guarantors, unconditionally and
irrevocably, guarantees to each of the Lenders and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by the Borrower when due (whether at
the stated maturity, by acceleration or otherwise) of the Guaranteed Obligations. 

        SECTION
3. The New Guarantor represents and warrants to the Agents and all Lenders that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal,
valid and binding obligation, enforceable against it in accordance with its terms. 

        SECTION
4. This Supplement may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This
Supplement shall 

17

 

become
effective when the Agents shall have received counterparts of this Supplement that, when taken together, bear the signatures of the New Guarantor and the Agents. Delivery of an executed
signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually executed counterpart of this Supplement. 

        SECTION
5. Except as expressly supplemented hereby, the Guarantee shall remain in full force and effect. 

        SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

        SECTION
7. In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and in the Guarantee shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision
in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

        SECTION
8. All communications and notices hereunder shall be in writing and given as provided in Section 13 of the Guarantee. All communications and notices hereunder to the New
Guarantor shall be given to it in care of the Borrower at the Borrower's address set forth in Section 13.2 of the Senior Subordinated Loan Agreement. 

        SECTION
9. The New Guarantor agrees to reimburse the Agents for its out-of-pocket expenses in connection with this Supplement, including the fees, disbursements
and other charges of counsel for the Agents. 

18

 

        IN
WITNESS WHEREOF, the New Guarantor and the Agents have duly executed this Supplement to the Guarantee as of the day and year first above written. 

	 	 	[Name of New Guarantor]
	 	 	By:	
 Name:

Title:

	
 
	
 	

 
	

 

	 	 	                        , as Agents
	 	 	By:	
 Name:

Title:

19

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