Document:

Exhibit 10.1

ARCC
COMMERCIAL LOAN TRUST 2006

U.S.$75,000,000
CLASS A-1A NOTES DUE 2019

U.S.$14,000,000
CLASS A-1B NOTES DUE 2019

U.S.$75,000,000
CLASS A-2A NOTES DUE 2019

U.S.$33,000,000
CLASS A-2B NOTES DUE 2019

U.S.$23,000,000
CLASS B NOTES DUE 2019

U.S.$44,000,000
CLASS C NOTES DUE 2019

PURCHASE
AGREEMENT

June 27, 2006

[                               ],

as the Initial Purchaser (the “Initial Purchaser”)

Ladies and Gentlemen:

Section 1.              Authorization
of Notes.

ARCC CLO 2006 LLC (the “Trust Depositor”), has
duly authorized the sale of the ARCC Commercial Loan Trust 2006 Notes,
consisting of the U.S.$75,000,000 Class A-1A Floating Rate Notes
(the “Class A-1A Notes”), U.S.$50,000,000 Class A-1A
VFN Revolving Floating Rate Notes (the “Class A-1A VFN Notes”),
U.S.$14,000,000 Class A-1B Floating Rate Notes (the “Class A-1B
Notes” and, together with the Class A-1A Notes and the Class A-1A
VFN Notes, the “Class A-1 Notes”), U.S.$75,000,000 Class A-2A
Floating Rate Notes (the “Class A-2A Notes”), U.S.
$33,000,000 Class A-2B Floating Rates Notes (the “Class A-2B
Notes” and, together with the Class A-2A Notes, the “Class A-2
Notes” and, the Class A-2 Notes together with the Class A-1
Notes, the “Class A Notes”), U.S.$23,000,000 Class B Floating
Rate Deferrable Interest Notes (the “Class B Notes”),
U.S.$44,000,000 Class C Floating Rate Deferrable Interest Notes (the “Class C
Notes” and, together with the Class A-1A Notes, the Class A-2
Notes, and the Class B Notes, the “Purchased Notes”, and the
Purchased Notes together with the Class A-1A VFN Notes, the “Offered
Notes”), U.S.$32,000,000 Class D Floating Rate Deferrable Interest
Notes (the “Class D Notes”) and the U.S.$54,000,000 Class E
Principal Only Notes (the “Class E Notes” and, together with the
Offered Notes and the Class D Notes, the “Notes”) of ARCC
Commercial Loan Trust 2006, a Delaware statutory trust (the “Trust”).
The Trust was formed pursuant to (i) a Trust Agreement, dated as of June 21,
2006 as amended and restated on July 7, 2006 (the “Trust Agreement”)
between the Trust Depositor and Wilmington Trust Company, as the owner trustee
(the “Owner Trustee”) and (ii) a Certificate of Trust filed with
the Secretary of State of the State of Delaware on June 21, 2006. The Class A-1A
Notes will be issued in an aggregate initial principal amount of $75,000,000,
the Class A-1A VFN Notes will be issued in a maximum initial
principal amount of $50,000,000, the Class A-1B

 

 

Notes will be issued in a maximum initial principal of
$14,000,000, the Class A-2A Notes will be issued in a maximum
initial principal of $75,000,000, the Class A-2B Notes will be
issued in a maximum initial principal of $33,000,000, the Class B Notes
will be issued in an aggregate initial principal amount of $23,000,000, the Class C
Notes will be issued in an aggregate initial principal amount of $44,000,000,
the Class D Notes will be issued in an aggregate initial principal amount
of $32,000,000, and the Class E Notes will be issued in an aggregate
initial principal amount of $54,000,000. In addition to the Notes, the Trust is
issuing a Trust Certificate (the “Certificate”). The Notes will be
secured by the assets of the Trust. The Certificate will represent a fractional
undivided ownership interest in the Trust. The Certificate will be issued
pursuant to the Trust Agreement. The Notes will be issued pursuant to an
Indenture, dated as of July 7, 2006 (the “Indenture”), between the
Trust and U.S. Bank National Association, as the trustee (the “Trustee”).
The primary assets of the Trust will be a pool of commercial loans, or
interests thereon, originated or purchased by the Company or acquired by the
Trust directly from a third party in transactions arranged and underwritten by
the Company or any transaction in which the Trust is the designee of the Company
under the instruments of conveyance relating to such loans (collectively, the “Commercial
Loans”). The Trust Depositor will acquire the Commercial Loans from the
Company pursuant to a Commercial Loan Sale Agreement, dated as of July 7,
2006 (the “Loan Sale Agreement”), between the Company and the Trust
Depositor. Pursuant to a Sale and Servicing Agreement, dated as of July 7,
2006 (the “Sale and Servicing Agreement”), among the Trust, the Company,
as the Originator and as the Servicer, the Trust Depositor, Lyon Financial
Services, Inc. (d/b/a U.S. Bank Portfolio Services), as the Backup
Servicer, the Owner Trustee and the Trustee, the Trust Depositor will sell,
transfer and convey to the Trust, without recourse, all of its right, title and
interest in the Commercial Loans. Pursuant to the Indenture, as security for
the indebtedness represented by the Notes, the Trust will pledge and grant to
the Trustee a security interest in the Commercial Loans, and its rights under
the Loan Sale Agreement and the Sale and Servicing Agreement. This Purchase
Agreement (the “Agreement”), the Trust Agreement, the Loan Sale
Agreement, the Sale and Servicing Agreement and the Indenture are referred to
collectively as the “Transaction Documents.”

Capitalized terms used herein but not otherwise
defined shall have the meanings set forth in the Sale and Servicing Agreement,
or if not defined therein, in the Indenture.

The Purchased Notes are to be offered without being
registered under the Securities Act of 1933, as amended (the “Securities Act”),
to “qualified institutional buyers” (as defined in Rule 144A under the
Securities Act (“QIBs”)) in compliance with the exemption from
registration provided by Rule 144A under the Securities Act (“Rule 144A”)
in offshore transactions in reliance on Regulation S under the Securities Act (“Regulation
S”), and to institutional “accredited investors” (as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act) (“Institutional
Accredited Investors”).

In connection with the sale of the Purchased Notes,
the Trust has prepared a preliminary confidential offering memorandum dated June 9,
2006 (including any exhibits thereto and all information incorporated therein
by reference, the “Preliminary Memorandum”), as supplemented by a
further preliminary confidential offering memorandum dated June 23, 2006
(including any exhibits thereto and all information incorporated therein by
reference, the “Preliminary Memorandum Supplement”), and a final
confidential offering memorandum dated as of the date hereof (including any
exhibits, amendments or supplements thereto and all 

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information incorporated therein by reference, the “Final
Memorandum”, and each of the Preliminary Memorandum, the Preliminary
Memorandum Supplement and the Final Memorandum, a “Memorandum”)
including a description of the terms of the Purchased Notes, the terms of the
offering, and a description of the Trust. It is understood and agreed that
11:09 a.m. on June 27, 2006 constitutes the time of the contract of
sale for each purchaser of the Purchased Notes offered to the investors for
purposes of Rule 159 under the Securities Act (the “Time of Sale”)
and that (i) the Preliminary Memorandum Supplement, which supplements,
amends and restates the Preliminary Memorandum and (ii) the term sheet
setting forth the pricing terms relating to each Class of Purchased Notes
constitute the entirety of the information conveyed to investors as of the Time
of Sale (the “Time of Sale Information”).

It is understood and agreed that nothing in this Agreement
shall prevent the Initial Purchaser from entering into any agency agreements,
underwriting agreements or other similar agreements governing the offer and
sale of securities with any issuer or issuers of securities, and nothing
contained herein shall be construed in any way as precluding or restricting the
Initial Purchaser’s right to sell or offer for sale any securities issued by
any person, including securities similar to, or competing with, the Notes.

During each Interest Period, the Class A-1A
Notes shall bear interest at a per annum
rate equal to the then applicable LIBOR plus 0.25% per annum, Class A-1B Notes shall bear interest
at a per annum rate equal to the
then applicable LIBOR plus 0.37% per annum,
the Class A-2A Notes shall bear interest at a per annum rate equal to the then
applicable LIBOR plus 0.22% per annum,
Class A-2B Notes shall bear interest at a per annum rate equal to the then applicable LIBOR plus 0.35%
per annum, the Class B Notes
shall bear interest at a per annum
rate equal to the then applicable LIBOR plus 0.43% per annum and the Class C Notes shall bear interest at
a per annum rate equal to the
then applicable LIBOR plus 0.70% per annum.

Each of the Trust Depositor and the Trust, as
applicable, hereby agrees with you, as the Initial Purchaser, as follows:

Section 2.              Purchase
and Sale of Purchased Notes.

Subject to the terms and
conditions and in reliance upon the representations and warranties set forth
herein, the Trust agrees to sell to the Initial Purchaser the Purchased Notes,
and the Initial Purchaser has agreed to use its reasonable best efforts to
place the aggregate principal amount of Purchased Notes set forth on Schedule
I hereto with investors in accordance with the terms hereof. It is
understood and agreed that the Initial Purchaser is not acquiring, and has no
obligation to acquire, the Class A-1A VFN Notes, the Class D
Notes, the Class E Notes or the Certificate. The Class A-1A VFN
Notes will be acquired by the initial Class A-1A VFN Noteholder
pursuant to the Class A-1A VFN Purchase Agreement, dated as of July 7,
2006 (the “Class A-1A VFN Purchase Agreement”), between the
Trust, the Class A-1A VFN Agent and the other Class A-1A
VFN Holders party thereto. The Class D Notes, the Class E Notes and
the Certificate will be acquired by the Trust Depositor on the Closing Date
pursuant to the Sale and Servicing Agreement. It is further understood and
agreed that the Initial Purchaser may purchase the Purchased Notes for its own
account, or sell the Purchased Notes to its affiliates or to any other
investor, in accordance with the applicable provisions hereof and of the
Indenture.

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Section 3.              Delivery.

Delivery of the Purchased Notes shall be made in the
form of one or more global certificates delivered to The Depository Trust
Company, except that any Purchased Note to be sold by the Initial Purchaser to
an Institutional Accredited Investor that is not a QIB (as defined herein)
shall be delivered in fully registered, certificated form in the minimum
denominations set forth in the Memorandum at the offices of Dechert LLP at
10:00 a.m. Charlotte, North Carolina time, on July 7, 2006, or such
other place, time or date as may be mutually agreed upon by the Initial
Purchaser and the Trust (the “Closing Date”). Subject to the foregoing,
the Purchased Notes will be registered in such names and such denominations as
the Initial Purchaser shall specify in writing to the Trust and the Trustee.
The Class A-1A VFN Notes, the Class D Notes, the Class E
Notes and the Certificate shall be delivered on the Closing Date in fully
registered, certificated form in the minimum denominations and the required
proportions set forth in the Memorandum.

Section 4.              Representations
and Warranties of the Trust.

The Trust represents and warrants to the Initial
Purchaser as of the date hereof and as of the Closing Date, that:

(i)            The
Final Memorandum does not and will not and any amendments thereof or supplement
thereto and any additional information and documents concerning the Purchased
Notes, including but not limited to one or more marketing books, delivered by
or on behalf of the Trust to prospective purchasers of the Purchased Notes
(collectively, such information and documents, the “Additional Offering
Documents”), did not or will not, each as of their respective dates or date
on which such statement was made, and as of the Closing Date do not and will
not, include an untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements in each, in light of the circumstances
under which they were made, not misleading; provided
that the Trust makes no representation or warranty as to the information
contained in or omitted from the Final Memorandum or the Additional Offering
Documents in reliance upon and in conformity with information furnished in
writing to the Trust by or on behalf of the Initial Purchaser referenced in the
last sentence of Section 9(a).

(ii)           The
Time of Sale Information, as of the Time of Sale, did not contain any untrue
statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading; provided that
the Trust makes no representation or warranty as to the information contained
in or omitted from the Time of Sale Information in reliance upon and in
conformity with information furnished in writing to the Trust by or on behalf
of the Initial Purchaser referenced in the last sentence of Section 9(a).

(iii)          The
Trust is a statutory trust, duly organized and validly existing and in good
standing under the laws of the state of Delaware, and has all power and
authority necessary to own or hold its properties and conduct its business in
which it is engaged as described in each Memorandum and has all licenses
necessary to carry on its business as it is now being conducted and is licensed
and qualified in each jurisdiction in which the 

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conduct
of its business (including, without limitation, the acquisition of Commercial
Loans and Related Property and the performance of its obligations hereunder and
under the Transaction Documents) requires such licensing or qualification and
in which the failure so to qualify would have a material adverse effect on the
business, properties, assets, or condition (financial or otherwise) of the
Trust.

(iv)          This
Agreement has been duly authorized, executed and delivered by the Trust, and,
assuming due authorization, execution and delivery thereof by the other parties
hereto, constitutes a valid and legally binding obligation of the Trust
enforceable against the Trust in accordance with its terms, subject, as to
enforcement only, to the effect of bankruptcy, insolvency, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights
generally or the application of equitable principles in any proceeding, whether
at law or in equity.

(v)           The
Sale and Servicing Agreement has been duly authorized, executed and delivered
by the Trust and, assuming due authorization, execution and delivery thereof by
the other parties thereto, constitutes a valid and binding agreement of the
Trust, enforceable against the Trust in accordance with its respective terms,
subject, as to enforcement only, to the effect of bankruptcy, insolvency,
reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally or the application of equitable principles in any
proceeding, whether at law or in equity.

(vi)          The
Purchased Notes have been duly authorized, and when executed and authenticated
in accordance with the Indenture and delivered to and paid for by the Initial
Purchaser in accordance with this Agreement, the Purchased Notes will
constitute valid and binding obligations of the Trust, enforceable against the
Trust in accordance with their terms, subject, as to enforcement only, to the
effect of bankruptcy, insolvency, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally or the application of
equitable principles in any proceeding, whether at law or in equity, and will
be entitled to the benefits of the Indenture.

(vii)         There is not pending or, to its
knowledge, threatened against the Trust or against any of its Affiliates, any
action, suit or proceeding at law or in equity or before any court, tribunal,
government body, agency or official or any arbitrator that is likely to affect
the legality, validity or enforceability against the Trust of this Agreement or
the Indenture or its ability (as a matter of law) to perform its obligations under
this Agreement or the Indenture.

(viii)        The
execution, delivery and performance of this Agreement and the other Transaction
Documents to which it is a party and the consummation by the Trust of the
transactions contemplated herein and therein and in all documents relating to
the Notes will not result in any breach or violation of, or constitute a
default under, any agreement or instrument to which the Trust is a party or to
which any of its properties or assets are subject, except for such of the foregoing
as to which relevant waivers or amendments have been obtained and are in full
force and effect, nor will any such action result in a violation of the trust
agreement of the Trust or any law or any order, decree, rule or 

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regulation
of any court or governmental agency having jurisdiction over the Trust or its
properties.

(ix)           Neither
the Trust nor the pool of Commercial Loans is, nor after giving effect to the
transactions contemplated by the Transaction Documents will be, required to be
registered as an “investment company” under the 1940 Act.

(x)            Assuming
the Initial Purchaser’s representations are true and accurate, it is not
necessary in connection with the offer, sale and delivery of the Purchased
Notes in the manner contemplated by this Agreement and each Memorandum to
register the Purchased Notes under the Securities Act or to qualify the
Indenture under the Trust Indenture Act of 1939, as amended.

(xi)           The
Trust has taken no action, and will take no future action, which would cause
the Purchased Notes to fail to satisfy the requirements set forth in Rule 144A(d)(3) under
the Securities Act.

(xii)          At
the time of execution and delivery of the Sale and Servicing Agreement, the
Trust Depositor owned the Commercial Loans conveyed to it on the Closing Date
free and clear of all liens, encumbrances, adverse claims or security interests
(“Liens”) other than Liens permitted by the Transaction Documents, and
the Trust Depositor had the power and authority to transfer such Commercial
Loans to the Trust.

(xiii)         Upon
the execution and delivery of the Transaction Documents, payment by the Initial
Purchaser and the Trust Depositor for the Purchased Notes and delivery to the
Initial Purchaser and the Trust Depositor of the Purchased Notes, the Trust
will own the Commercial Loans conveyed to it on the Closing Date and the
Initial Purchaser and the Trust Depositor will acquire title to the Purchased
Notes, in each case free of Liens except such Liens as may be created or
granted by the Initial Purchaser and those permitted in the Transaction
Documents.

(xiv)        No
consent, authorization or order of, or filing or registration with, any court
or governmental agency is required for the issuance and sale of the Purchased
Notes or the execution, delivery and performance by the Trust of this Agreement
or the other Transaction Documents to which it is a party, except such
consents, approvals, authorizations, registrations or qualifications as have
been obtained or as may be required under state securities or Blue Sky laws in
connection with the sale and delivery of the Purchased Notes in the manner
contemplated herein.

(xv)         The
Commercial Loans, individually and in the aggregate, in all material respects
have the characteristics described in the Final Memorandum.

(xvi)        Each
of the representations and warranties of the Trust and the Trust Depositor set
forth in each of the other Transaction Documents is true and correct in all
material respects.

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(xvii)       Any
taxes, fees and other governmental charges payable in connection with the execution,
delivery and issuance of this Agreement and the other Transaction Documents and
the Notes have been or will be paid by the Trust prior to the Closing Date.

(xviii)      No
adverse selection procedures were used in selecting the Commercial Loans from among
the loans that meet the representations and warranties of the Company contained
in the Loan Sale Agreement and that are included in the Loan Assets.

(xix)         Neither
the Trust nor any affiliate (as defined in Rule 501(b) of Regulation
D under the Securities Act (“Regulation D”)) of the Trust nor anyone
acting on their behalf, other than the Initial Purchaser as to which the Trust
makes no representation, has, directly or indirectly, sold or offered, or
attempted to offer or sell, or solicited any offers to buy, or otherwise
approached or negotiated in respect of, any of the Purchased Notes and neither
the Trust nor any of its affiliates will do any of the foregoing. As used
herein, the terms “offer” and “sale” have the meanings specified in Section 2(3) of
the Securities Act.

(xx)          Neither
the Trust nor any affiliate (as defined in Rule 501(b) of Regulation
D) of the Trust has directly, or through any agent, sold, offered for sale,
solicited offers to buy or otherwise negotiated in respect of, any security (as
defined in the Securities Act) which is or will be integrated with the sale of
the Purchased Notes in a manner that would require the registration under the
Securities Act of the offering contemplated by each Memorandum or engaged in
any form of general solicitation or general advertising in connection with the
offering of the Purchased Notes.

(xxi)         With
respect to any Purchased Notes subject to the provisions of Regulation S of the
Securities Act, the Trust has not offered or sold such Purchased Notes during
the Distribution Compliance Period to a person (other than the Initial
Purchaser) who is within the United States or its possessions or to a United
States person. For this purpose, the term “Distribution Compliance Period” is
defined as such term is defined in Regulation S and the terms “United States or
its possessions” and “United States person” are defined as such terms are
defined for purposes of Treas. Reg. § 1.163—5(c)(2)(i)(D).

Section 5.              Sale
of Purchased Notes to the Initial Purchaser.

(a)           The sale of the Purchased Notes to the Initial Purchaser and the
Trust Depositor will be made without registration of the Purchased Notes under
the Securities Act, in reliance upon the exemption therefrom provided by Section 4(2) of
the Securities Act.

(b)           The Trust, the Initial Purchaser and
the Trust Depositor hereby agree that the Purchased Notes will be offered and
sold only in transactions exempt from registration under the Securities Act. Assuming
the Notes are offered and sold in accordance with and in the manner set forth
in the Offering Documents, the Trust, the Initial Purchaser and the Trust
Depositor each reasonably believes that at the Time of Sale of the Purchased
Notes by the Trust through the Initial Purchaser (i) either (A) each
purchaser of the Purchased Notes is an institutional investor that is (1) a
QIB in transactions meeting the requirements of Rule 144A, or (2) an
Institutional 

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Accredited Investor who
purchases for its own account or for any discretionary account for which it is
acquiring the Purchased Notes and provides the Initial Purchaser or the Trust
Depositor with a written certification in substantially the form of Exhibit D-1
to the Indenture, or (B) each purchaser is acquiring the Purchased Notes
in an offshore transaction meeting the requirements of Regulation S and (ii) the
offering of the Purchased Notes will be made in a manner it reasonably believes
will enable the offer and sale of the Purchased Notes to be exempt from
registration under state securities or Blue Sky laws; and each such party
understands that no action has been taken to permit a public offering in any
jurisdiction where action would be required for such purpose. The Trust, the
Initial Purchaser and the Trust Depositor each further agree not to (i) engage
(and represents that it has not engaged) in any activity that would constitute
a public offering of the Purchased Notes within the meaning of Section 4(2) of
the Securities Act or (ii) offer or sell (and represents that it has not
offered or sold) the Purchased Notes by any form of general solicitation or
general advertising (as those terms are used in Regulation D), including the
methods described in Rule 502(c) of Regulation D, in connection with
any offer or sale of the Purchased Notes.

Section 6.              Representations
and Warranties of the Initial Purchaser

(a)           Neither the Initial Purchaser nor any affiliate (as defined in Regulation
D) of the Initial Purchaser nor anyone acting on their behalf has,
directly or indirectly, sold or offered, or attempted to offer or sell, or
solicited any offers to buy, or otherwise approached or negotiated in respect
of, any of the Purchased Notes and neither the Initial Purchaser nor any of its affiliates will do any of the
foregoing.

(b)           The Initial Purchaser hereby
represents and warrants to and agrees with the Trust, that (i) it is a
QIB, (ii) it will offer the Purchased Notes only (A) to persons who
it reasonably believes are QIBs in transactions meeting the requirements of Rule 144A,
(B) to institutional investors who it reasonably believes are
Institutional Accredited Investors or (C) in offshore transactions in
accordance with Regulation S. The Initial Purchaser further agrees that it will
(i) deliver to each purchaser of the Purchased Notes, at or prior to the
Time of Sale, a copy of the Time of Sale Information, as then amended or
supplemented, which Time of Sale Information will include a Notice to Investors
in the form attached hereto as Exhibit A, and (ii) prior to
any sale of the Purchased Notes to an Institutional Accredited Investor that it
does not reasonably believe is a QIB, it will receive from such Institutional
Accredited Investor a written certification in substantially the form attached
as Exhibit D-1 to the Indenture.

(c)           The Initial Purchaser hereby
represents that it is duly authorized and possesses the requisite corporate
power to enter into this Agreement.

(d)           The Initial Purchaser hereby
represents there is no action, suit or proceeding pending against or, to the
knowledge of such Initial Purchaser, threatened against or affecting, such
Initial Purchaser before any court or arbitrator or any government body,
agency, or official which could materially adversely affect the ability of such
Initial Purchaser to perform its obligations under this Agreement.

(e)           The Initial Purchaser hereby
represents and agrees that all offers and sales of the Purchased Notes to non—United
States persons, prior to the expiration of the Distribution 

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Compliance Period, will be
made only in accordance with the provisions of Rule 903 or Rule 904
of Regulation S (except to the extent of any beneficial owners thereof who
acquired an interest therein pursuant to another exemption from registration
under the Securities Act and who will take delivery of a beneficial ownership
interest in a Global Note, as contemplated in the Indenture) and only upon the
receipt of the certification of beneficial ownership of the securities by a non—United
States person in the form provided in the Indenture. For this purpose, the term
“Distribution Compliance Period” is defined as such term is defined in
Regulation S and the term “United States person” is defined as such term
is defined for purposes of Treas. Reg. § 1.163 5(c)(2)(i)(D).

(f)            Neither the Initial Purchaser nor
anyone acting on its behalf has offered or sold any Purchased Note or interest
therein by any form of general solicitation within the meaning of Rule 502(c) under
the Securities Act or general advertising.

(g)           The Initial Purchaser hereby
represents that it (i) has not offered or sold and will not offer or sell
any Purchased Notes to persons in the United Kingdom except to investment
professionals falling within Article 19(5) of the Financial Services
and Markets Act 2000 (the “FSMA”) (Financial Promotion) Order 2005 (the “Order”)
and high net worth entities, and other persons to whom they may lawfully be
offered, falling within Article 49(2)(a) to (e) of the Order, or
otherwise in circumstances which have not resulted and will not result in an
offer of transferable securities to the public within the meaning of Section 102B
of the FSMA, (ii) is an investment professional falling under Article 19(5) of
the Order, (iii) has only communicated or caused to be communicated and
will only communicate or cause to be communicated any invitation or inducement
to engage in investment activity (within the meaning of Section 21 of the
FSMA) received by it in connection with any issue of or sale of the Purchased
Notes in circumstances in which Section 21(1) of the FSMA does not
apply to the Trust, or to the persons to whom such communication may otherwise
be lawfully made and (iv) has complied and will comply with all applicable
provisions of the FSMA and regulations made thereunder with respect to anything
done by it in relation to the Purchased Notes in, from or otherwise involving
the United Kingdom.

(h)           The Initial Purchaser is a U.S.
registered broker-dealer subject to regulation under the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. No. 107-56 (2001) (the “USA
PATRIOT Act”). The Initial Purchaser represents that it has adopted
reasonable policies and procedures sufficient to meet the requirements of the
USA PATRIOT Act. In connection with the transactions contemplated herein, the
Initial Purchaser agrees that it will be responsible for compliance with the
USA PATRIOT Act (including “know your customer” procedures) and the
requirements fo the Office of Foreign Assets Control and any other applicable
anti-money laundering laws, rules or regulations.

(i)            The Initial Purchaser represents and
agrees that in connection with each sale (A) to a QIB, it has taken or
will take reasonable steps to ensure that the purchaser is aware that the
Purchased Notes have not been and will not be registered under the Securities
Act and that transfers of the Purchased Notes are restricted as set forth in
the Final Memorandum; and (B) to a non-U.S. Person, it has taken or will
take reasonable steps to ensure that the purchaser is aware

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that the Purchased Notes have not been and will not be
registered under the Securities Act and that transfers of the Purchased Notes
are restricted as set forth in the Final Memorandum.

Section 7.              Certain
Agreements of the Trust.

The Trust covenants and
agrees with the Initial Purchaser as follows:

(a)           If, at any time prior to the 90th day
following the Closing Date, any event involving the Trust shall occur as a
result of which the Final Memorandum (as then amended or supplemented) would
include an untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, the Trust will immediately notify
the Initial Purchaser and prepare and furnish to the Initial Purchaser an
amendment or supplement to the Final Memorandum that will correct such
statement or omission. The Trust will not at any time amend or supplement the
Final Memorandum (i) prior to having furnished the Initial Purchaser with
a copy of the proposed form of the amendment or supplement and giving the
Initial Purchaser a reasonable opportunity to review the same or (ii) in a
manner to which the Initial Purchaser or its counsel shall object.

(b)           During the period referred to in Section 7(a),
the Trust will furnish to the Initial Purchaser, without charge, copies of the
Final Memorandum (including all exhibits and documents incorporated by
reference therein), the Transaction Documents, and all amendments or
supplements to such documents, in each case as soon as reasonably available and
in such quantities as the Initial Purchaser may from time to time request.

(c)           At all times during the course of the
private placement contemplated hereby and prior to the Closing Date, (i) the
Trust will make available to each offeree the Additional Offering Documents and
information concerning any other relevant matters, as they or any of their
affiliates possess or can acquire without unreasonable effort or expense, as
determined in good faith by them, (ii) the Trust will provide each offeree
the opportunity to ask questions of, and receive answers from, them concerning
the terms and conditions of the offering and to obtain any additional
information, to the extent they or any of their affiliates possess such
information or can acquire it without unreasonable effort or expense (as
determined in good faith by them), necessary to verify the accuracy of the
information furnished to the offeree, (iii) the Trust will not publish or
disseminate any material in connection with the offering of the Purchased Notes
except as contemplated herein or as consented to by the Initial Purchaser, (iv) the
Trust will advise the Initial Purchaser promptly of the receipt by the Trust of
any communication from the SEC or any state securities authority concerning the
offering or sale of the Purchased Notes, (v) the Trust will advise the
Initial Purchaser promptly of the commencement of any lawsuit or proceeding to
which the Trust is a party relating to the offering or sale of the Purchased
Notes, and (vi) the Trust will advise the Initial Purchaser of the
suspension of the qualification of the Purchased Notes for offering or sale in
any jurisdiction, or the initiation or threat of any procedure for any such
purpose.

(d)           The Trust will furnish, upon the
written request of any Noteholder or of any owner of a beneficial interest
therein, such information as is specified in paragraph (d)(4) of Rule 144A
under the Securities Act (i) to such Noteholder or beneficial owner, (ii) to
a prospective

 10
 

 

 

purchaser of such Note or
interest therein who is a QIB designated by such Noteholder or beneficial
owner, or (iii) to the Trustee for delivery to such Noteholder, beneficial
owner or prospective purchaser, in order to permit compliance by such Noteholder
or beneficial owner with Rule 144A in connection with the resale of such
Note or beneficial interest therein by such holder or beneficial owner in
reliance on Rule 144A unless, at the time of such request, the Trust is
subject to the reporting requirements of Section 13 or 15(d) of the
Security Exchange Act of 1934 (the “Exchange Act”) or is exempt from
such reporting requirements pursuant to and in compliance with Rule 12g3-2(b) under
the Exchange Act.

(e)           Except as otherwise provided in the
Indenture, each Purchased Note will contain a legend to the effect set forth in
the form of Notice to Investors attached as Exhibit A hereto.

(f)            In connection with the application
to list the Listed Notes on the Irish Stock Exchange, the Trust will furnish
from time to time any and all documents, instruments, information and
undertakings and publish all advertisements or other material that may be
necessary in order to effect such listing and to maintain such listing until
none of such Notes is outstanding or until such time as payment of principal,
interest and any additional amounts (if any) in respect of all such Notes have
been duly provided for, whichever is earlier; provided
that if such listing can no longer be reasonably maintained, the Trust will use
its best efforts to obtain and maintain the quotation for, or listing of, such
Notes on such other stock exchange or exchanges in the European Union as the
Initial Purchaser may reasonably request.

Section 8.              Conditions
of the Initial Purchaser’s Obligations.

The obligations of the Initial Purchaser to purchase
the Purchased Notes on the Closing Date will be subject to the accuracy, in all
material respects, of the representations and warranties of the Trust herein,
to the performance, in all material respects, by the Trust of its obligations
hereunder and to the following additional conditions precedent:

(a)           The Purchased Notes shall have been
duly authorized, executed, authenticated and issued, the Transaction Documents
shall have been duly authorized, executed and delivered by the respective
parties thereto and shall be in full force and effect, and the Commercial Loans
shall have been delivered to the Trustee pursuant to the Sale and Servicing
Agreement.

(b)           The Class A-1A Notes, the Class A-1A
VFN Notes, the Class A-1B Notes, the Class A-2A Notes,
and the Class A-2B Notes shall each have been rated no less than “Aaa”
by Moody’s and “AAA” by S&P, the Class B Notes shall have been rated
no less than “Aa2” by Moody’s and “AA” by S&P, the Class C Notes shall
have been rated no less than “A2” by Moody’s and “A” by S&P, and the Class D
Notes shall have been rated no less than “Baa2” by Moody’s and “BBB” by
S&P, such ratings shall not have been rescinded, and no public announcement
shall have been made by the respective rating agencies that the rating of the
Purchased Notes have been placed under review.

(c)           On the date of the Final Memorandum,
KPMG LLC shall have furnished to the Initial Purchaser an “agreed upon
procedures” letter, dated the date of delivery thereof, in form and substance
satisfactory to the Initial Purchaser, with respect to certain financial and
statistical information contained in the Final Memorandum.

 11

 

(d)           The Initial Purchaser shall have
received an opinion, dated the Closing Date, of in-house counsel to the
Trustee, in form and substance satisfactory to the Initial Purchaser.

(e)           The Initial Purchaser shall have
received legal opinions of Latham & Watkins LLP, counsel to the
Company and the Trust Depositor, (i) with respect to certain corporate,
securities law and investment company matters, in form and substance
satisfactory to the Initial Purchaser and (ii) with respect to certain “true
sale” and “non—consolidation” issues in form and substance satisfactory to the
Initial Purchaser.

(f)            The Initial Purchaser shall have
received an opinion of Venable LLP, counsel to the Company, with respect to
certain corporate matters and “perfection issues” in form and substance
satisfactory to the Initial Purchaser.

(g)           The Initial Purchaser shall have
received an opinion of Dechert LLP, special tax counsel to the Trust with
respect to certain federal tax matters.

(h)           The Initial Purchaser shall have
received an opinion of Latham & Watkins LLP, counsel to the Company
and the Trust Depositor, with respect to certain “perfection issues” in form
and substance satisfactory to the Initial Purchaser.

(i)            The Initial Purchaser shall have
received opinions of Pepper Hamilton LLP, counsel to the Owner Trustee and the
Trust, with respect to certain trust matters and with respect to certain “perfection
issues,” in each case in form and substance satisfactory to the Initial
Purchaser.

(j)            The Initial Purchaser shall have
received an opinion of Nixon Peabody, counsel to the Trustee, with respect to
certain “perfection issues” in form and substance satisfactory to the Initial
Purchaser.

(k)           The Initial Purchaser shall have
received from the Trustee a certificate signed by one or more duly authorized
officers of the Trustee, dated the Closing Date, in customary form.

(l)            The Initial Purchaser shall have
received from the Owner Trustee a certificate signed by one or more duly
authorized officers of the Owner Trustee, dated the Closing Date, in customary
form.

(m)          The Initial Purchaser and its counsel
shall have received from the Trust and the Company such further information,
certificates and documents as the Initial Purchaser and its counsel may
reasonably have requested, and all proceedings in connection with the
transactions contemplated by this Agreement and all documents incident hereto
shall be in all material respects reasonably satisfactory in form and substance
to the Initial Purchaser and its counsel.

(n)           All documents incident hereto and to
the Transaction Documents shall be reasonably satisfactory in form and
substance to the Initial Purchaser and its counsel, and the Initial Purchaser
and its counsel shall have received such information, certificates and
documents as they may reasonably request.

 12
 

 

If any of the conditions specified in this Section 8
shall not have been fulfilled in all material respects when and as provided in
this Agreement, or if any of the opinions and certificates mentioned above
shall not be in all material respects reasonably satisfactory in form and
substance to the Initial Purchaser, this Agreement and all of the Initial
Purchaser’s obligations hereunder may be canceled by the Initial Purchaser at
or prior to delivery of and payment for the Purchased Notes. Notice of such
cancellation shall be given to the Trust in writing, or by telephone or
facsimile confirmed in writing.

Section 9.              Indemnification
and Contribution.

(a)           The Trust shall indemnify and hold
harmless the Initial Purchaser, its officers, directors, employees, agents and
each person, if any, who controls the Initial Purchaser within the meaning of
either the Securities Act or the Exchange Act and affiliates of the Initial
Purchaser from and against any loss, claim, damage or liability, joint or
several, and any action in respect thereof, to which the Initial Purchaser or
such controlling person may become subject, under the Securities Act or
Exchange Act or otherwise, insofar as such loss, claim, damage, liability or
action arises out of, or is based upon, any untrue statement or alleged untrue
statement of a material fact contained in the Final Memorandum, any Additional
Offering Document or the Time of Sale Information, or arises out of, or is
based upon, the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, and
shall reimburse the Initial Purchaser and such controlling person for any legal
and other expenses reasonably incurred by the Initial Purchaser or such
controlling person in investigating or defending or preparing to defend against
any such loss, claim, damage, liability or action; provided
that the Trust shall not be liable to the Initial Purchaser in any such case to
the extent that any such loss, claim, damage, liability or action arises out
of, or is based upon, any untrue statement or alleged untrue statement or
omission or alleged omission made in the Time of Sale Information or the Final
Memorandum in reliance upon and in conformity with written information
furnished to the Trust by the Initial Purchaser specifically for inclusion
therein; provided  further
that the foregoing indemnity shall not inure to the benefit of the Initial
Purchaser or any person that controls the Initial Purchaser from whom the
person asserting any such loss, claim, damage or liability purchased the
Purchased Notes which are the subject thereof if the Trust shall sustain the
burden of proving that the Initial Purchaser sold Purchased Notes to the person
alleging such loss, claim, damage or liability without sending or giving a copy
of the Time of Sale Information at or prior to the confirmation of the sale of
the Purchased Notes, if the Company shall have previously furnished copies
thereof to the Initial Purchaser and the loss, claim, damage or liability of
such person results from an untrue statement or omission of a material fact
contained in the Preliminary Memorandum which was corrected in the Time of Sale
Information. The foregoing indemnity is in addition to any liability that the
Trust may otherwise have to the Initial Purchaser or any person or entity
controlling the Initial Purchaser. The Trust acknowledges that the statements
set forth in the Time of Sale Information and the Final Memorandum (x) under
the caption: “Plan of Distribution” (but solely the second, third, fourth,
sixth, seventh, ninth and thirteenth paragraphs under such caption), with
respect to the Initial Purchaser; and (y) relating to: [                    ]
in the second full paragraph on page iii of each Memorandum, in the second
paragraph under the caption “Plan of Distribution” and in the fourth and sixth
paragraphs under the caption “Purchaser Inquiries” (setting forth address
information with respect to [                    ]),
constitute the only written information 

 13
 

 

furnished to the Trust by the Initial Purchaser or on
behalf of the Initial Purchaser specifically for inclusion in the Time of Sale
Information, the Final Memorandum or any Additional Offering Document.

(b)           Promptly after receipt by an
indemnified party under this Section 9 of notice of any claim or
the commencement of any action, the indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party under this Section 9,
notify the indemnifying party in writing of the claim or commencement of that
action, provided that the failure to notify the
indemnifying party shall not relieve the indemnifying party from any liability
that it may have to an indemnified party under this Section 9,
except to the extent that the indemnifying party has been materially prejudiced
by such failure and, provided  further that the failure to notify the indemnifying party
shall not relieve the indemnifying party from any liability that it may have to
an indemnified party otherwise than under this Section 9. If any
such claim or action shall be brought against an indemnified party, and it
shall notify the indemnifying party thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it wishes, jointly with
any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice
from the indemnifying party to the indemnified party of its election to assume
the defense of such claim or action, the indemnifying party shall not be liable
to the indemnified party under this Section 9 for any legal or
other expenses subsequently incurred by the indemnified party in connection
with the defense thereof; provided that the Initial Purchaser shall have the
right to employ counsel to represent the Initial Purchaser and the controlling
persons who may be subject to liability arising out of any claim or action in
respect of which indemnity may be sought by the Initial Purchaser against the
Trust under this Section 9, if (i) in the reasonable judgment
of an Initial Purchaser, there may be legal defenses available to such Initial
Purchaser, and those controlling persons, different from or in addition to
those available to the Trust, or there is a conflict of interest between the
Initial Purchaser and the controlling persons, on one hand, and the Trust, on
the other, or (ii) the Trust shall fail to select counsel reasonably
satisfactory to the indemnified party or parties, and in such event the fees
and expenses of such separate counsel shall be paid by the Trust. In no event
shall the Trust be liable for the fees and expenses of more than one separate
firm of attorneys for each of the Initial Purchaser and their controlling
persons in connection with any other action or separate but similar or related
actions in the same jurisdiction arising out of the same general allegations or
circumstances. No indemnifying party shall, without the prior written consent
of the indemnified party, effect any settlement of any pending or threatened
proceeding in respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party,
unless such settlement (i) does not include a statement as to or admission
of, fault, culpability or a failure to act by or on behalf of any such
indemnified party, and (ii) includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of
such proceeding.

(c)           If the indemnification provided for
in this Section 9 shall for any reason be unavailable to an
indemnified party under Section 9(a) hereof in respect of any
loss, claim, damage or liability, or any action in respect thereof, referred to
therein, then each indemnifying party shall, in lieu of indemnifying such
indemnified party, contribute to the amount paid or payable by such indemnified
party as a result of such loss, claim, damage or liability, or action in
respect thereof, (i) in such proportion as shall be appropriate to reflect
the relative benefits received by the Trust on the one hand and the Initial
Purchaser on the other from the offering of 

 14
 

 

the Purchased Notes or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the
Trust on the one hand and the Initial Purchaser on the other with respect to
the statements or omissions that resulted in such loss, claim, damage or
liability, or action in respect thereof, as well as any other relevant
equitable considerations. The relative benefits received by the Trust on the
one hand and the Initial Purchaser on the other with respect to such offering
shall be deemed to be in the same proportion as the total net proceeds from the
offering of the Purchased Notes (before deducting expenses) received by the Trust
bear to the total fees actually received by the Initial Purchaser with respect
to such offering pursuant to Section 2 and with respect to the
offering of the Class A-1A VFN Notes. The relative fault shall be
determined by reference to whether the untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by the Trust, the Initial Purchaser, the intent of the
parties and their relative knowledge, access to information and opportunity to
correct or prevent such statement or omission. The Trust and the Initial
Purchaser agree that it would not be just and equitable if contributions
pursuant to this Section 9(c) were to be determined by pro
rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to herein. The amount paid or
payable by an indemnified party as a result of the loss, claim, damage or
liability, or action in respect thereof, referred to above in this Section 9(c) shall
be deemed to include, for purposes of this Section 9(c), any legal
or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 9(c), the Initial Purchaser shall not be
required to contribute any amount in excess of the aggregate fee actually paid
to the Initial Purchaser pursuant to Section 2 of this Agreement
and with respect to the offering of the Class A-1A VFN Notes. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

(d)           The indemnity agreements contained in
this Section 9 shall survive the delivery of the Purchased Notes,
and the provisions of this Section 9 shall remain in full force and
effect, regardless of any termination or cancellation of this Agreement or any
investigation made by or on behalf of any indemnified party.

Section 10.            Termination.

This Agreement shall be subject to termination in the
absolute discretion of the Initial Purchaser, by notice given to the Trust
prior to delivery of and payment for the Purchased Notes, if prior to such time
(i) trading in securities generally in the New York Stock Exchange or the
Irish Stock Exchange shall have been suspended or materially limited or any
setting of minimum prices for trading on such exchange has occurred, (ii) there
has been, since the respective dates as of which information is given in the
Time of Sale Information or the Final Memorandum, any material adverse change
in the condition, financial or otherwise, or in the properties (including,
without limitation, the Commercial Loans) or the earnings, business affairs or
business prospects of the Trust considered as one enterprise, whether or not
arising in the ordinary course of business; (iii) a general moratorium on
commercial banking activities in New York or Ireland shall have been declared
by either U.S. federal, New York State or Irish authorities, or (iv) there
shall have occurred any material outbreak or escalation of hostilities or other
calamity or crises 

 15
 

 

the effect of which on the financial markets of the
United States is such as to make it, in the reasonable judgment of the Initial
Purchaser, impracticable or inadvisable to market the Purchased Notes on the
terms and in the manner contemplated by each Memorandum as amended or
supplemented.

Section 11.            Severability
Clause.

Any part, provision, representation, or warranty of
this Agreement which is prohibited or is held to be void 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.

Section 12.            Notices.

All
demands, notices and communications hereunder shall be in writing and shall be
deemed to have been duly given if personally delivered at or mailed by
overnight mail, certified mail or registered mail, postage prepaid and
effective only upon receipt and if sent to the Initial Purchaser, [[                    ];
or if sent to the Company, the Trust Depositor or the Trust will be delivered
to such party c/o Ares Capital Corporation, 280 Park Avenue, 22nd Floor,
Building East, New York, New York 10017, attention: Michael Arougheti,
facsimile (212) 750-1777.

Section 13.            Representations
and Indemnities to Survive.

The
respective agreements, representations, warranties, indemnities and other
statements of the Trust, the Trust Depositor and its officers, and of the
Initial Purchaser set forth in or made pursuant to this Agreement will remain
in full force and effect, regardless of any investigation made by or on behalf
of the Initial Purchaser, the Trust or any of the controlling persons referred
to in Section 9 and will survive delivery of and payment for the
Purchased Notes.

Section 14.            Successors.

This
Agreement will inure to the benefit of and be binding upon the parties hereto
and their respective successors by merger, consolidation or acquisition of
their assets substantially as an entity and the officers, directors and
controlling persons referred to in Section 9 and, except as
specifically set forth herein, no other person will have any right or obligation
hereunder.

Section 15.            Applicable
Law.

(a)           THIS AGREEMENT WILL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE
STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAW
PRINCIPLES).

(b)           EACH PARTY HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY 

 16
 

 

HERETO (I) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 15(b).

(c)           ANY LEGAL ACTION OR PROCEEDING WITH RESPECT
TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE UNITED STATES FOR
THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH PARTY HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON—EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH SUCH PARTY
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF
VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION
IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO.

Section 16.            Counterparts,
Etc.

This Agreement supersedes all prior or contemporaneous
agreements and understandings relating to the subject matter hereof. Neither
this Agreement nor any term hereof may be changed, waived, discharged or
terminated except by a writing signed by the party against whom enforcement of
such change, waiver, discharge or termination is sought. This Agreement may be
signed in any number of counterparts each of which shall be deemed an original,
which taken together shall constitute one and the same instrument.

Section 17.            Limitation
of Liability.

Notwithstanding any other provision herein or
elsewhere, this Agreement has been executed and delivered on behalf of the
Trust by Wilmington Trust Company, not in its individual capacity, but solely
in its capacity as Owner Trustee of the Trust, in no event shall Wilmington
Trust Company, or the Owner Trustee have any liability in respect of the
representations, warranties, or obligations of the Trust hereunder or under any
other document, as to all of which recourse shall be had solely to the assets
of the Trust, and for all purposes of this Agreement and each other document,
the Owner Trustee and Wilmington Trust Company, shall be entitled to the
benefits of the Trust Agreement.

Section 18.            No
Petition.

The Initial Purchaser covenants and agrees that, prior
to the date that is one year and one day (or such longer preference period as
shall then be in effect) after the payment in full of each Class of Notes
rated by any Rating Agency, it will not institute against the Trust or join any
other Person in instituting against the Trust any bankruptcy, reorganization,
arrangement, insolvency 

 17
 

 

or liquidation proceedings or other similar
proceedings under the laws of the United States or any state of the United
States. This Section 18 will survive the termination of this
Agreement.

[REST OF PAGE INTENTIONALLY LEFT BLANK]

 18
 

 

If the foregoing is in accordance with your understanding
of our agreement, please sign and return to the undersigned a counterpart
hereof, whereupon this letter and your acceptance shall represent a binding
agreement among the Trust Depositor, the Trust and the Initial Purchaser.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  ARCC CLO 2006 LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Arougheti

  
	
   

  	
  Name:

  	
  Micheal Arougheti

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ARCC COMMERCIAL
  LOAN TRUST 2006

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  WILMINGTON TRUST COMPANY,
  not in its individual capacity but solely as Owner Trustee on behalf of the
  Trust

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michele C. Harra

  
	
   

  	
  Name:

  	
  Michele C. Harra

  
	
   

  	
  Title:

  	
  Financial Services Officer

  
				

 

 19
 

 

The foregoing Agreement is hereby confirmed
and

accepted as of the date first above written.

[                              ],

as Initial Purchaser.

 

	
  By:

  	
  /s/ Kevin Sunday

  	
   

  
	
  Name:

  	
  Kevin Sunday

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  

 

 20
 

 

SCHEDULE
I

	
  Class Of Notes

  	
   

  	
  Principal Amount

  	
   

  	
  Purchase Price (% of Par)

  
	
  A-1A

  	
   

  	
  $75,000,000

  	
   

  	
  100%

  
	
  A-1B

  	
   

  	
  $14,000,000

  	
   

  	
  100%

  
	
  A-2A

  	
   

  	
  $75,000,000

  	
   

  	
  100%

  
	
  A-2B

  	
   

  	
  $33,000,000

  	
   

  	
  100%

  
	
  B

  	
   

  	
  $23,000,000

  	
   

  	
  100%

  
	
  C

  	
   

  	
  $44,000,000

  	
   

  	
  100%

  

 

 21EXHIBIT 10.1

CREDIT AGREEMENT

Dated as of June 27,
2006

among

INTERNATIONAL RECTIFIER
SOUTHEAST ASIA PTE. LTD.,

as the Borrower,

BANK OF AMERICA, N.A.,

as Administrative Agent

and

The Other Lenders Party
Hereto

BANC OF AMERICA
SECURITIES LLC,

as Sole Lead Arranger and Sole Book Manager

 

   
 

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  ARTICLE I.

  	
   

  	
  DEFINITIONS AND ACCOUNTING TERMS

  	
   

  	
  1

  	
   

  
	
  1.01.

  	
   

  	
  Defined Terms

  	
   

  	
  1

  	
   

  
	
  1.02.

  	
   

  	
  Other Interpretive Provisions

  	
   

  	
  13

  	
   

  
	
  1.03.

  	
   

  	
  Accounting Terms

  	
   

  	
  14

  	
   

  
	
  1.04.

  	
   

  	
  Rounding

  	
   

  	
  15

  	
   

  
	
  1.05.

  	
   

  	
  Times of Day

  	
   

  	
  15

  	
   

  
	
  1.06.

  	
   

  	
  Currency Equivalents Generally

  	
   

  	
  15

  	
   

  
	
  ARTICLE II.

  	
   

  	
  THE COMMITMENTS AND BORROWINGS

  	
   

  	
  15

  	
   

  
	
  2.01.

  	
   

  	
  The Loans

  	
   

  	
  15

  	
   

  
	
  2.02.

  	
   

  	
  Borrowings, Conversions and Continuations of Loans

  	
   

  	
  15

  	
   

  
	
  2.03.

  	
   

  	
  Prepayments and Repayments

  	
   

  	
  17

  	
   

  
	
  2.04.

  	
   

  	
  Interest

  	
   

  	
  17

  	
   

  
	
  2.05.

  	
   

  	
  Intentionally Omitted.

  	
   

  	
  18

  	
   

  
	
  2.06.

  	
   

  	
  Computation of Interest and Fees

  	
   

  	
  18

  	
   

  
	
  2.07.

  	
   

  	
  Evidence of Debt

  	
   

  	
  18

  	
   

  
	
  2.08.

  	
   

  	
  Payments Generally; Administrative Agent’s Clawback

  	
   

  	
  18

  	
   

  
	
  2.09.

  	
   

  	
  Sharing of Payments by Lenders

  	
   

  	
  20

  	
   

  
	
  ARTICLE III.

  	
   

  	
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
   

  	
  20

  	
   

  
	
  3.01.

  	
   

  	
  Taxes. (a) Payments Free of Taxes

  	
   

  	
  20

  	
   

  
	
  3.02.

  	
   

  	
  Illegality

  	
   

  	
  21

  	
   

  
	
  3.03.

  	
   

  	
  Inability to Determine Rates

  	
   

  	
  22

  	
   

  
	
  3.04.

  	
   

  	
  Increased Costs; Reserves on Eurodollar Rate Loans

  	
   

  	
  22

  	
   

  
	
  3.05.

  	
   

  	
  Compensation for Losses

  	
   

  	
  23

  	
   

  
	
  3.06.

  	
   

  	
  Mitigation Obligations; Replacement of Lenders

  	
   

  	
  24

  	
   

  
	
  3.07.

  	
   

  	
  Survival

  	
   

  	
  24

  	
   

  
	
  ARTICLE IV.

  	
   

  	
  CONDITIONS PRECEDENT TO Borrowing

  	
   

  	
  24

  	
   

  
	
  4.01.

  	
   

  	
  Conditions of Borrowing

  	
   

  	
  24

  	
   

  
	
  ARTICLE V.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  26

  	
   

  
	
  5.01.

  	
   

  	
  Existence, Qualification and Power

  	
   

  	
  26

  	
   

  
	
  5.02.

  	
   

  	
  Authorization; No Contravention

  	
   

  	
  27

  	
   

  
	
  5.03.

  	
   

  	
  Governmental Authorization; Other Consents

  	
   

  	
  27

  	
   

  

 

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TABLE OF CONTENTS

(continued)

	
   

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  5.04.

  	
   

  	
  Binding Effect

  	
   

  	
  27

  	
   

  
	
  5.05.

  	
   

  	
  Financial Statements; No Material Adverse Effect; No
  Internal Control Event

  	
   

  	
  27

  	
   

  
	
  5.06.

  	
   

  	
  Litigation

  	
   

  	
  27

  	
   

  
	
  5.07.

  	
   

  	
  No Default

  	
   

  	
  28

  	
   

  
	
  5.08.

  	
   

  	
  Ownership of Property; Liens; Investments

  	
   

  	
  28

  	
   

  
	
  5.09.

  	
   

  	
  Insurance

  	
   

  	
  28

  	
   

  
	
  5.10.

  	
   

  	
  Taxes

  	
   

  	
  28

  	
   

  
	
  5.11.

  	
   

  	
  Employee Benefit Plans

  	
   

  	
  28

  	
   

  
	
  5.12.

  	
   

  	
  Subsidiaries; Equity Interests; Loan Parties

  	
   

  	
  28

  	
   

  
	
  5.13.

  	
   

  	
  Disclosure

  	
   

  	
  29

  	
   

  
	
  5.14.

  	
   

  	
  Compliance with Laws

  	
   

  	
  29

  	
   

  
	
  5.15.

  	
   

  	
  Solvency

  	
   

  	
  29

  	
   

  
	
  ARTICLE VI.

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
  29

  	
   

  
	
  6.01.

  	
   

  	
  Financial Statements

  	
   

  	
  29

  	
   

  
	
  6.02.

  	
   

  	
  Certificates; Other Information

  	
   

  	
  30

  	
   

  
	
  6.03.

  	
   

  	
  Notices

  	
   

  	
  31

  	
   

  
	
  6.04.

  	
   

  	
  Payment of Obligations

  	
   

  	
  31

  	
   

  
	
  6.05.

  	
   

  	
  Preservation of Existence, Etc

  	
   

  	
  32

  	
   

  
	
  6.06.

  	
   

  	
  Maintenance of Insurance

  	
   

  	
  32

  	
   

  
	
  6.07.

  	
   

  	
  Compliance with Laws

  	
   

  	
  32

  	
   

  
	
  6.08.

  	
   

  	
  Books and Records

  	
   

  	
  32

  	
   

  
	
  6.09.

  	
   

  	
  Use of Proceeds

  	
   

  	
  32

  	
   

  
	
  6.10.

  	
   

  	
  Further Assurances

  	
   

  	
  32

  	
   

  
	
  ARTICLE VII.

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
  32

  	
   

  
	
  7.01.

  	
   

  	
  Liens

  	
   

  	
  32

  	
   

  
	
  7.02.

  	
   

  	
  Indebtedness

  	
   

  	
  33

  	
   

  
	
  7.03.

  	
   

  	
  Investments

  	
   

  	
  34

  	
   

  
	
  7.04.

  	
   

  	
  Fundamental Changes

  	
   

  	
  35

  	
   

  
	
  7.05.

  	
   

  	
  Restricted Payments

  	
   

  	
  35

  	
   

  
	
  7.06.

  	
   

  	
  Change in Nature of Business

  	
   

  	
  36

  	
   

  

 

 ii
 

 

TABLE OF CONTENTS

(continued)

	
   

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  7.07.

  	
   

  	
  Transactions with Affiliates

  	
   

  	
  36

  	
   

  
	
  7.08.

  	
   

  	
  Burdensome Agreements

  	
   

  	
  36

  	
   

  
	
  7.09.

  	
   

  	
  Financial Covenants

  	
   

  	
  36

  	
   

  
	
  7.10.

  	
   

  	
  Accounting Changes

  	
   

  	
  36

  	
   

  
	
  ARTICLE VIII.

  	
   

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
   

  	
  36

  	
   

  
	
  8.01.

  	
   

  	
  Events of Default

  	
   

  	
  36

  	
   

  
	
  8.02.

  	
   

  	
  Remedies upon Event of Default

  	
   

  	
  38

  	
   

  
	
  8.03.

  	
   

  	
  Application of Funds

  	
   

  	
  39

  	
   

  
	
  ARTICLE IX.

  	
   

  	
  ADMINISTRATIVE AGENT

  	
   

  	
  39

  	
   

  
	
  9.01.

  	
   

  	
  Appointment and Authority

  	
   

  	
  39

  	
   

  
	
  9.02.

  	
   

  	
  Rights as a Lender

  	
   

  	
  40

  	
   

  
	
  9.03.

  	
   

  	
  Exculpatory Provisions

  	
   

  	
  40

  	
   

  
	
  9.04.

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  41

  	
   

  
	
  9.05.

  	
   

  	
  Delegation of Duties

  	
   

  	
  41

  	
   

  
	
  9.06.

  	
   

  	
  Resignation of Administrative Agent

  	
   

  	
  41

  	
   

  
	
  9.07.

  	
   

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
   

  	
  42

  	
   

  
	
  9.08.

  	
   

  	
  No Other Duties, Etc

  	
   

  	
  42

  	
   

  
	
  9.09.

  	
   

  	
  Administrative Agent May File Proofs of Claim

  	
   

  	
  42

  	
   

  
	
  9.10.

  	
   

  	
  Guaranty Matters

  	
   

  	
  43

  	
   

  
	
  ARTICLE X.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  43

  	
   

  
	
  10.01.

  	
   

  	
  Amendments, Etc

  	
   

  	
  43

  	
   

  
	
  10.02.

  	
   

  	
  Notices; Effectiveness; Electronic Communications

  	
   

  	
  44

  	
   

  
	
  10.03.

  	
   

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  46

  	
   

  
	
  10.04.

  	
   

  	
  Expenses; Indemnity; Damage Waiver

  	
   

  	
  46

  	
   

  
	
  10.05.

  	
   

  	
  Payments Set Aside

  	
   

  	
  48

  	
   

  
	
  10.06.

  	
   

  	
  Successors and Assigns

  	
   

  	
  48

  	
   

  
	
  10.07.

  	
   

  	
  Treatment of Certain Information; Confidentiality

  	
   

  	
  51

  	
   

  
	
  10.08.

  	
   

  	
  Right of Setoff

  	
   

  	
  52

  	
   

  
	
  10.09.

  	
   

  	
  Interest Rate Limitation

  	
   

  	
  52

  	
   

  
	
  10.10.

  	
   

  	
  Counterparts; Integration; Effectiveness

  	
   

  	
  53

  	
   

  
	
  10.11.

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  53

  	
   

  

 

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TABLE OF CONTENTS

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
  10.12.

  	
   

  	
  Severability

  	
   

  	
  53

  	
   

  
	
  10.13.

  	
   

  	
  Replacement of Lenders

  	
   

  	
  53

  	
   

  
	
  10.14.

  	
   

  	
  Governing Law; Jurisdiction; Etc

  	
   

  	
  54

  	
   

  
	
  10.15.

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  55

  	
   

  
	
  10.16.

  	
   

  	
  No Advisory or Fiduciary Responsibility

  	
   

  	
  55

  	
   

  
	
  10.17.

  	
   

  	
  USA PATRIOT Act
  Notice

  	
   

  	
  56

  	
   

  

 

 iv

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2.01

  	
   

  	
  Commitments and Applicable Percentages

  
	
  5.08

  	
   

  	
  Existing Liens

  
	
  5.12

  	
   

  	
  Subsidiaries and Other Equity Investments; Loan
  Parties

  
	
  7.02

  	
   

  	
  Existing Indebtedness

  
	
  7.08

  	
   

  	
  Certain Contractual Obligations

  
	
  10.02

  	
   

  	
  Administrative Agent’s Office, Certain Addresses for
  Notices

  
	
  10.06

  	
   

  	
  Processing and Recordation Fees

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Form of

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Committed Loan Notice

  
	
  B

  	
   

  	
  Term Note

  
	
  C

  	
   

  	
  Compliance Certificate

  
	
  D

  	
   

  	
  Assignment and Assumption

  

 

CREDIT
AGREEMENT

This CREDIT AGREEMENT (“Agreement”) is entered
into as of June 27, 2006, among 
INTERNATIONAL RECTIFIER SOUTHEAST ASIA PTE. LTD. (registration no.
198801980R), a limited liability company organized under the laws of Singapore
(“Borrower”), each lender from time to time party hereto (collectively,
the “Lenders” and individually, a “Lender”), and BANK OF AMERICA,
N. A. as Administrative Agent.

PRELIMINARY
STATEMENTS:

The Borrower has requested that the Lenders provide a
term loan facility, and the Lenders have indicated their willingness to lend on
the terms and subject to the conditions set forth herein.

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

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

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

“Administrative Agent” means Bank of America,
N.A., in its capacity as administrative agent under any of the Loan Documents,
or any successor administrative agent.

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

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

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

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

“Applicable Percentage” means, with respect to
any Lender at any time, the percentage (carried out to the ninth decimal place)
of the Facility represented by the principal amount of such Lender’s Loans at
such time. The initial Applicable Percentage of each Lender in respect of each
Facility is set forth opposite the name of such Lender on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable.

“Applicable Rate” means  0.00% per annum
for Base Rate Loans and 1.00% per annum for Eurodollar Rate Loans.

 

 

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

“Arranger” means Banc of America Securities
LLC, in its capacity as sole lead arranger and sole book manager.

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

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

“Attributable Indebtedness” means, on any date,
(a) in respect of any Capitalized Lease of any Person, the capitalized
amount thereof that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP, (b) in respect of any Synthetic
Lease Obligation, the capitalized amount of the remaining lease or similar
payments under the relevant lease or other applicable agreement or instrument
that would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP if such lease or other agreement or instrument were
accounted for as a Capitalized Lease and (c) all Synthetic Debt of such
Person.

“Audited Financial Statements” means the
audited consolidated balance sheet of the Borrower for the fiscal year ended June 30,
2005, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal year of the Borrower,
including the notes thereto.

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

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

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

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

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

 2
 

 

 

“Business Day” means any day other than a
Saturday, Sunday or other day on which commercial banks are authorized to close
under the Laws of, or are in fact closed in, Singapore and, if such day relates
to any Eurodollar Rate Loan, means any such day on which dealings in Dollar
deposits are conducted by and between banks in the London interbank eurodollar
market.

“Capital Expenditures” means, with respect to
any Person for any period, any expenditure in respect of the purchase or other
acquisition of any fixed or capital asset (excluding normal replacements and
maintenance which are properly charged to current operations).

“Capitalized Leases” means all leases that have
been or should be, in accordance with GAAP, recorded as capitalized leases.

“Cash Equivalents” means any of the following
types of Investments, to the extent owned by the Borrower or any of its
Subsidiaries free and clear of all Liens:

(a)           readily
marketable obligations issued or directly and fully guaranteed or insured by
the United States of America or any agency or instrumentality thereof having
maturities of not more than 360 days from the date of acquisition thereof; provided
that the full faith and credit of the United States of America is pledged in
support thereof;

(b)           time
deposits with, or insured certificates of deposit or bankers’ acceptances of,
any commercial bank that (i) (A) is a Lender or (B) is organized
under the laws of the United States of America, any state thereof or the District
of Columbia or is the principal banking subsidiary of a bank holding company
organized under the laws of the United States of America, any state thereof or
the District of Columbia, and is a member of the Federal Reserve System, (ii) issues
(or the parent of which issues) commercial paper rated as described in clause (c) of
this definition and (iii) has combined capital and surplus of at least
$1,000,000,000, in each case with maturities of not more than 90 days from the
date of acquisition thereof;

(c)           commercial
paper issued by any Person organized under the laws of any state of the United
States of America and rated at least “Prime-1” (or the then equivalent
grade) by Moody’s or at least “A-1” (or the then equivalent
grade) by S&P, in each case with maturities of not more than 180 days
from the date of acquisition thereof; and

(d)           Investments,
classified in accordance with GAAP as current assets of the Borrower or any of
its Subsidiaries, in money market investment programs registered under the
Investment Company Act of 1940, which are (1) administered by financial
institutions that have the highest rating obtainable from either Moody’s or
S&P, and the portfolios of which are limited solely to Investments of the
character, quality and maturity described in clauses (a), (b) and (c) of
this definition, or (2) rated at all times at least “Baa3-” or “Prime-3”
(or the then equivalent grade) by Moody’s or “BBB-” or “A-3” (or the
then equivalent grade) by S&P or

“BBB-” or “F3” (or the then equivalent grade) by Fitch IBCA, Inc.

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

 3
 

 

 

“Change of Control” means an event or series of
events by which Guarantor shall cease, directly or indirectly, to own and
control legally and beneficially all of the Equity Interests in the Borrower.

“Closing Date” means the first date all the
conditions precedent in Section 4.01 are satisfied or waived in
accordance with Section 10.01.

“Commitment” means, as to each Lender, its
obligation to make Loans to the Borrower pursuant to Section 2.01
in an aggregate principal amount at any one time outstanding not to exceed the
amount set forth opposite such Lender’s name on Schedule 2.01 under the
caption “Commitment” or opposite such caption in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable, as such
amount may be adjusted from time to time in accordance with this Agreement

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

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

“Consolidated EBITDA” means, at any date of
determination, an amount equal to Consolidated Net Income of the Borrower and
its Subsidiaries on a consolidated basis for the most recently completed
Measurement Period plus (a) the following to the extent deducted in
calculating such Consolidated Net Income: 
(i) Consolidated Interest Charges, (ii) the provision for
Federal, state, local and foreign income taxes payable, (iii) depreciation
and amortization expense, and (iv) other charges reducing Consolidated Net
Income which do not represent a cash item in such period or any future period,
and minus (b) the following to the extent included in calculating
such Consolidated Net Income:  Federal,
state, local and foreign income tax credits.

“Consolidated Interest Charges” means, for any
Measurement Period, the sum of (a) all interest, premium payments, debt
discount, fees, charges and related expenses in connection with borrowed money
(including capitalized interest) or in connection with the deferred purchase
price of assets, in each case to the extent treated as interest in accordance
with GAAP, (b) all interest paid or payable with respect to discontinued
operations and (c) the portion of rent expense under Capitalized Leases
that is treated as interest in accordance with GAAP, in each case, of or by the
Borrower and its Subsidiaries on a consolidated basis for the most recently
completed Measurement Period.

“Consolidated Net Income” means, at any date of
determination, the net income (or loss) of the Borrower and its Subsidiaries on
a consolidated basis for the most recently completed Measurement Period; provided
that Consolidated Net Income shall exclude (a) extraordinary gains and
extraordinary losses for such Measurement Period, (b) the net income of
any Subsidiary during such Measurement Period to the extent that the
declaration or payment of dividends or similar distributions by such Subsidiary
of such income is not permitted by operation of the terms of its Organization
Documents or any agreement, instrument or Law applicable to such Subsidiary
during such Measurement Period, except that the Borrower’s equity in any net
loss of any such Subsidiary for such Measurement Period shall be included in 

 4
 

 

 

determining Consolidated Net Income, and (c) any
income (or loss) for such Period of any Person if such Person is not a
Subsidiary, except that the Borrower’s equity in the net income of any such
Person for such Measurement Period shall be included in Consolidated Net Income
up to the aggregate amount of cash actually distributed by such Person during
such Period to the Borrower or a Subsidiary as a dividend or other distribution
(and in the case of a dividend or other distribution to a Subsidiary, such
Subsidiary is not precluded from further distributing such amount to the
Borrower as described in clause (b) of this proviso).

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

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

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

“Default” means any event or condition that
constitutes an Event of Default or that, with the giving of any notice, the
passage of time, or both, would be an Event of Default.

“Default Rate” means an interest rate equal to (i) the
Base Rate plus (ii) the Applicable Rate, if any, applicable to Base
Rate Loans plus (iii) 2% per annum; provided, however,
that with respect to a Eurodollar Rate Loan, the Default Rate shall be an
interest rate equal to the interest rate (including any Applicable Rate)
otherwise applicable to such Loan plus 2% per annum.

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

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

 “Eligible
Assignee” means any Person that meets the requirements to be an assignee
under Section 10.06(b)(iii), (v) and (vi) (subject
to such consents, if any, as may be required under Section 10.06(b)(iii)).

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

 5
 

 

 

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

 “Eurodollar
Rate” means, for any Interest Period with respect to a Eurodollar Rate Loan,
the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA
LIBOR”), as published by Reuters (or other commercially available source
providing quotations of BBA LIBOR as designated by the Administrative Agent
from time to time) at approximately 11:00 a.m., London time, three
Business Days prior to the commencement of such Interest Period, for Dollar
deposits (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period. If such rate is not available at such time
for any reason, then the “Eurodollar Rate” for such Interest Period shall be
the rate per annum determined by the Administrative Agent to be the rate at
which deposits in Dollars for delivery on the first day of such Interest Period
in same day funds in the approximate amount of the Eurodollar Rate Loan being
made, continued or converted by Bank of America and with a term equivalent to
such Interest Period would be offered by Bank of America’s London Branch to
major banks in the London interbank eurodollar market at their request at
approximately 11:00 a.m. (London time) two Business Days prior to the
commencement of such Interest Period.

“Eurodollar Rate Loan” means a Loan that bears
interest at a rate based on the Eurodollar Rate.

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

“Excluded Taxes” means, with respect to the
Administrative Agent, any Lender, or any other recipient of any payment to be
made by or on account of any obligation of the Borrower hereunder, (a) taxes
imposed on or measured by its overall net income, gross receipts or capital
(however denominated), and franchise taxes, excise taxes, net worth or similar
levies imposed on it (in lieu of taxes on overall net income, gross receipts or
capital), by the jurisdiction (or any political subdivision thereof) under the
laws of which such recipient is organized or in which its principal office is
located or, in the case of any Lender, in which its applicable Lending Office
is located, (b) any branch profits taxes imposed by the United States or
any similar tax imposed by any other jurisdiction in which the Borrower is
located and (c) in the case of a Foreign Lender (other than an assignee
pursuant to a request by the Borrower under Section 10.13), any
withholding tax that is imposed on amounts payable to such Foreign Lender at
the time such Foreign Lender becomes a party hereto (or designates a new
Lending Office) or is attributable to such Foreign Lender’s failure or
inability (other than as a result of a Change in Law) to comply with Section 3.01(e),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new Lending Office (or assignment),
to receive additional amounts from the Borrower with respect to such withholding
tax pursuant to Section 3.01(a).

“Facility” means, at any time, the aggregate
principal amount of the Loans of all Lenders outstanding at such time..

“Federal” means the federal government of the
United States.

 6
 

 

 

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

“Foreign Government Scheme or Arrangement” has
the meaning specified in Section 5.12.

“Foreign Lender” means any Lender that is
organized under the laws of a jurisdiction other than that in which the
Borrower is resident for tax purposes.

“Foreign Plan” has the meaning specified in Section 5.12(d).

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

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

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

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

“Guarantee” means, as to any Person, any (a) any
obligation, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation payable or
performable by another Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person,
direct or indirect, (i) to purchase or pay (or advance or supply funds for
the purchase or payment of) such Indebtedness or other obligation, (ii) to
purchase or lease property, securities or services for the purpose of assuring
the obligee in respect of such Indebtedness or other obligation of the payment
or performance of such Indebtedness or other obligation, (iii) to maintain
working capital, equity capital or any other financial statement condition or
liquidity or level of income or cash flow of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered
into for the purpose of assuring in any other manner the obligee in respect of
such Indebtedness or other obligation of the payment or performance thereof or
to 

 7
 

 

protect such obligee against loss in respect thereof
(in whole or in part), or (b) any Lien on any assets of such Person
securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person (or any
right, contingent or otherwise, of any holder of such Indebtedness to obtain
any such Lien). The amount of any Guarantee shall be deemed to be an amount
equal to the stated or determinable amount of the related primary obligation,
or portion thereof, in respect of which such Guarantee is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect
thereof as determined by the guaranteeing Person in good faith. The term “Guarantee”
as a verb has a corresponding meaning.

“Guarantor” means International Rectifier
Corporation, a Delaware corporation.

“Guaranty” means, the Guaranty made by the
Guarantor in favor of the Lenders.

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

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

(b)           the
maximum amount of all direct or contingent obligations of such Person arising
under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar instruments;

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

(d)           all
obligations of such Person to pay the deferred purchase price of property or
services (other than (i) trade accounts payable in the ordinary course of
business and not past due for more than 60 days after the date on which such
trade account was created, and (ii) intercompany accounts payable not
outstanding for more than 180 days);

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

(f)            all
Attributable Indebtedness in respect of Capitalized Leases and Synthetic Lease
Obligations of such Person and all Synthetic Debt of such Person;

(g)           all
obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Equity Interest in such Person or any other
Person or any warrant, right or option to acquire such Equity Interest, valued,
in the case of a redeemable preferred interest, at the greater of its voluntary
or involuntary liquidation preference plus accrued and unpaid dividends;
and

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

 8
 

 

 

For all purposes hereof, the Indebtedness of any
Person shall include the Indebtedness of any partnership or joint venture
(other than a joint venture that is itself a corporation or limited liability
company) in which such Person is a general partner or a joint venturer, unless
such Indebtedness is non-recourse to such Person, whether expressly or at Law. The
amount of any net obligation under any Swap Contract on any date shall be
deemed to be the Swap Termination Value thereof as of such date.

“Indemnified Taxes” means Taxes other
than Excluded Taxes.

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

“Information” has the meaning specified in Section 10.07.

“Interest Payment Date” means, (a) as to
any Eurodollar Rate Loan, the last day of each Interest Period applicable to
such Loan and the Maturity Date of the Facility under which such Loan was made;
provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan, the last Business Day of
each March, June, September and December and the Maturity Date of the
Facility under which such Loan was made.

“Interest Period” means, as to each Eurodollar
Rate Loan, the period commencing on the date such Eurodollar Rate Loan is
disbursed or converted to or continued as a Eurodollar Rate Loan and ending on
the date one, two or three months thereafter, as selected by the Borrower in
its Committed Loan Notice; provided that:

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

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

(c)           no
Interest Period shall extend beyond the Maturity Date of the Facility under
which such Loan was made.

“Investment” means, as to any Person, any
direct or indirect acquisition or investment by such Person, by means of (a) the
purchase or other acquisition of Equity Interests of another Person, (b) a
loan, advance or capital contribution to, Guarantee or assumption of debt of,
or purchase or other acquisition of any other debt or interest in, another
Person, or (c) the purchase or other acquisition (in one transaction or a
series of transactions) of assets of another Person that constitute a business
unit or all or a substantial part of the business of, such Person. For purposes
of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in
the value of such Investment.

 9

 

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

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

“Lending Office” means, as to any Lender, the
office or offices of such Lender described as such in such Lender’s
Administrative Questionnaire, or such other office or offices as a Lender may
from time to time notify the Borrower and the Administrative Agent.

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

“Loan” means an extension of credit by a Lender
to the Borrower under Article II.

“Loan Documents” means, collectively, (a) this
Agreement, (b) the Notes, and (c) the Guaranty.

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

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

“Maturity Date” means June 26, 2008, provided,
however, that, if such date is not a Business Day, the Maturity Date
shall be the next preceding Business Day.

“Measurement Period” means, at any date of
determination, the most recently completed four fiscal quarters of the
Borrower.

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

“Obligations” means all advances to, and debts,
liabilities, obligations, covenants and duties of, any Loan Party arising under
any Loan Document or otherwise with respect to any Loan, whether direct or
indirect (including those acquired by assumption), absolute or 

 10
 

 

 

contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the
commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding.

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

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

“Outstanding Amount” means the aggregate
outstanding principal amount thereof after giving effect to any borrowings and
prepayments or repayments of Term Loans occurring on such date.

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

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

“Platform” has the meaning specified in Section 6.02.

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

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

“Request for Credit Extension” means with
respect to a Borrowing, conversion or continuation of a Term Loan, a Committed
Loan Notice.

“Required Lenders” means, as of any date of
determination, Lenders holding at least 50% of the Total Outstandings.

“Responsible Officer” means any director or the
chief executive officer, president or chief financial officer, secretary or
assistant secretary of a Loan Party. Any document delivered hereunder that is
signed by a Responsible Officer of a Loan Party shall be conclusively presumed 

 11
 

 

to have been authorized by all necessary corporate,
partnership and/or other action on the part of such Loan Party and such
Responsible Officer shall be conclusively presumed to have acted on behalf of
such Loan Party.

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

“Revolving Credit Agreement” means the Credit
Agreement dated as of November 7, 2003, among the Guarantor, the Lender
Parties (as defined therein), and BNP Paribas, as Administrative Agent for the
Lender Parties, as amended by that certain Amendment dated as of June 5,
2006.

“Solvent” and “Solvency” mean, with
respect to any Person on any date of determination, that on such date (a) the
fair value of the property of such Person is greater than the total amount of
liabilities, including contingent liabilities, of such Person, (b) the
present fair salable value of the assets of such Person is not less than the
amount that will be required to pay the probable liability of such Person on
its debts as they become absolute and matured, (c) such Person does not
intend to, and does not believe that it will, incur debts or liabilities beyond
such Person’s ability to pay such debts and liabilities as they mature, (d) such
Person is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which such Person’s property would constitute
an unreasonably small capital, and (e) such Person is able to pay its
debts and liabilities, contingent obligations and other commitments as they
mature in the ordinary course of business. The amount of contingent liabilities
at any time shall be computed as the amount that, in the light of all the facts
and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability.

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

“Swap Contract” means (a) any and all rate
swap transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts,
equity or equity index swaps or options, bond or bond price or bond index swaps
or options or forward bond or forward bond price or forward bond index
transactions, interest rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency swap
transactions, cross-currency rate swap 

 12
 

 

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

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

“Synthetic Debt” means, with respect to any
Person as of any date of determination thereof, all obligations of such Person
in respect of transactions entered into by such Person that are intended to
function primarily as a borrowing of funds but are not otherwise included in
the definition of “Indebtedness” or as a liability on the consolidated
balance sheet of such Person and its Subsidiaries in accordance with GAAP.

“Synthetic Lease Obligation” means the monetary
obligation of a Person under (a) a so-called synthetic, off-balance sheet
or tax retention lease, or (b) an agreement for the use or possession of
property (including sale and leaseback transactions), in each case, creating
obligations that do not appear on the balance sheet of such Person but which,
upon the application of any Debtor Relief Laws to such Person, would be
characterized as the indebtedness of such Person (without regard to accounting
treatment).

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

“Threshold Amount” means $5,000,000.

“Total Outstandings” means the aggregate
Outstanding Amount of all Loans.

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

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

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

 13
 

 

 

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

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

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

1.03.       Accounting Terms. (a) Generally. All
accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial
ratios and other financial calculations) required to be submitted pursuant to
this Agreement shall be prepared in conformity with, GAAP applied on a
consistent basis, as in effect from time to time, applied in a manner consistent
with that used in preparing the Audited Financial Statements, except as
otherwise specifically prescribed herein.

(b)           Changes in GAAP. If at any
time any change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrower or the
Required Lenders shall so request, the Administrative Agent, the Lenders and
the Borrower shall negotiate in good faith to amend such ratio or requirement
to preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders); provided that, until
so amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Borrower
shall provide to the Administrative Agent and the Lenders financial statements
and other documents 

 14
 

 

required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such
ratio or requirement made before and after giving effect to such change in
GAAP.

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

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

1.06.       Currency Equivalents Generally. Any amount specified in
this Agreement (other than in Articles II, IX and X) or
any of the other Loan Documents to be in Dollars shall also include the
equivalent of such amount in any currency other than Dollars, such equivalent
amount thereof in the applicable currency to be determined by the
Administrative Agent at such time on the basis of the Spot Rate (as defined
below) for the purchase of such currency with Dollars. For purposes of this Section 1.06,
the “Spot Rate” for a currency means the rate determined by the
Administrative Agent to be the rate quoted by the Person acting in such
capacity as the spot rate for the purchase by such Person of such currency with
another currency through its principal foreign exchange trading office at
approximately 8:00 a.m. on the date two Business Days prior to the date of
such determination; provided that the Administrative Agent may obtain
such spot rate from another financial institution designated by the
Administrative Agent if the Person acting in such capacity does not have as of
the date of determination a spot buying rate for any such currency.

ARTICLE II.

THE COMMITMENTS AND BORROWINGS

2.01.       The Loans. Subject to the terms and conditions set
forth herein, each Lender severally agrees to make a single loan to the
Borrower on the Closing Date in an amount not
to exceed such Lender’s Commitment. The Borrowing shall consist of Loans made
simultaneously by the Lenders in accordance with their respective Applicable
Percentage. Amounts borrowed under this Section 2.01 and repaid or
prepaid may not be reborrowed. Loans may be Base Rate Loans or Eurodollar Rate
Loans, as further provided herein.

2.02.       Borrowings, Conversions and Continuations of Loans.
(a) Each Borrowing, each conversion of Loans from one Type to the other,
and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s
irrevocable notice to the Administrative Agent, which may be given by telephone.
Each such notice must be received by the Administrative Agent not later than
8:00 a.m. (i) four Business Days prior to the requested date of any
Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any
conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) two
Business Days prior to the requested date of any Borrowing of Base Rate Loans. Each
telephonic notice by the Borrower pursuant to this Section 2.02(a) must
be confirmed promptly by delivery to the Administrative Agent of a written
Committed Loan Notice, appropriately completed and signed by a Responsible
Officer of the 

 15
 

 

Borrower. Each Borrowing of, conversion to or
continuation of Eurodollar Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $500,000 in excess thereof. Except as
provided in Section 2.03(a), each Borrowing of or conversion to
Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple
of $100,000 in excess thereof. Each Committed Loan Notice  (whether telephonic or written) shall specify
(i) whether the Borrower is requesting a conversion of Loans from one Type
to the other, or a continuation of Eurodollar Rate Loans, (ii) the
requested date of the Borrowing, conversion or continuation, as the case may be
(which shall be a Business Day), (iii) the principal amount of Loans to be
converted or continued, (iv) the Type of Loans to be borrowed or to which
existing Loans are to be converted, and (v) if applicable, the duration of
the Interest Period with respect thereto. If the Borrower fails to give a
timely notice requesting a conversion or continuation, then the applicable
Loans shall be converted to Eurodollar Rate Loans with an Interest Period of
three months. Any such automatic conversion shall be effective as of the last
day of the Interest Period then in effect with respect to the applicable
Eurodollar Rate Loans. If the Borrower requests a Borrowing of, conversion to,
or continuation of Eurodollar Rate Loans in any such Committed Loan Notice, but
fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of three months.

(b)           Following receipt of a Committed Loan
Notice, the Administrative Agent shall promptly notify each Lender of the amount
of its Applicable Percentage of the Loans, and if no timely notice of a
conversion or continuation is provided by the Borrower, the Administrative
Agent shall notify each Lender of the details of any automatic conversion to
Base Rate Loans described in Section 2.02(a). Each Lender (which,
in the case of Bank of America, shall be its Singapore Branch) shall make the
amount of its Loan available to the Administrative Agent in immediately
available funds at the Administrative Agent’s Office not later than 10:00 a.m.
on the Business Day specified in the applicable Committed Loan Notice. Upon
satisfaction of the applicable conditions set forth in Section 4.01, the Administrative Agent shall make all funds so received available to the
Borrower in like funds as received by the Administrative Agent either by (i) crediting
the account of the Borrower on the books of Bank of America with the amount of
such funds or (ii) wire transfer of such funds, in each case in accordance
with instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Borrower.

(c)           Except as otherwise provided herein,
a Eurodollar Rate Loan may be continued or converted only on the last day of an
Interest Period for such Eurodollar Rate Loan. During the existence of a
Default, no Loans may be requested as, converted to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders.

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

(e)           After giving effect to all
Borrowings, all conversions of Loans from one Type to the other, and all
continuations of Loans as the same Type, there shall not be more than four (4) Interest
Periods in effect in respect of the Facility.

 16
 

 

 

2.03.       Prepayments and Repayments.

(a)           Prepayments.
The Borrower may, upon notice to the Administrative Agent, at any
time or from time to time voluntarily prepay Term Loans in whole or in part
without premium or penalty; provided that (A) such notice must be
received by the Administrative Agent not later than 11:00 a.m. (1) four
Business Days prior to any date of prepayment of Eurodollar Rate Loans and (2) one
Business Day prior to the date of prepayment of Base Rate Loans; (B) any
prepayment of Eurodollar Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $500,000 in excess thereof; and (C) any
prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof or, in each case, if less, the
entire principal amount thereof then outstanding. Each such notice shall
specify the date and amount of such prepayment and the Type(s) of Loans to
be prepaid and, if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of
such Loans. The Administrative Agent will promptly notify each Lender of its
receipt of each such notice, and of the amount of such Lender’s ratable portion
of such prepayment (based on such Lender’s Applicable Percentage in respect of
the Facility). If such notice is given by the Borrower, the Borrower shall make
such prepayment and the payment amount specified in such notice shall be due
and payable on the date specified therein. Any prepayment of a Eurodollar Rate
Loan shall be accompanied by all accrued interest on the amount prepaid,
together with any additional amounts required pursuant to Section 3.05.
Each such prepayment shall be paid to the Lenders in accordance with their
respective Applicable Percentages.

(b)           Termination
or Reduction of Commitments. The aggregate Commitments shall be
automatically and permanently reduced to zero on the date of the Borrowing.

(c)           Repayment
of Loans; Currency. The Borrower shall repay to the Lenders the aggregate
principal amount of all Loans outstanding on the Maturity Date. All sums due
from the Borrower hereunder shall be payable in Dollars.

2.04.       Interest. (a) Subject to the provisions of Section 2.08(b),
(i) each Eurodollar Rate Loan shall bear interest on the outstanding
principal amount thereof for each Interest Period at a rate per annum equal to
the Eurodollar Rate for such Interest Period plus the Applicable Rate
for such Facility; and (ii) each Base Rate Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate.

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

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

 17
 

 

 

(iii)          Upon the request of the Required
Lenders, while any Event of Default exists, the Borrower shall pay interest on
the principal amount of all outstanding Obligations hereunder at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws.

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

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

2.05.       Intentionally Omitted.

2.06.       Computation of Interest and Fees. All computations of
interest for Base Rate Loans when the Base Rate is determined by Bank of
America’s “prime rate” shall be made on the basis of a year of 365 or 366 days,
as the case may be, and actual days elapsed. All  computations of fees and interest shall be
made on the basis of a 360-day year and actual days elapsed (which
results in more fees or interest, as applicable, being paid than if computed on
the basis of a 365-day year). Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall, subject
to Section 2.08(a), bear interest for one day. Each determination
by the Administrative Agent of an interest rate or fee hereunder shall be
conclusive and binding for all purposes, absent manifest error.

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

2.08.       Payments Generally; Administrative Agent’s Clawback. (a)  General.
All payments to be made by the Borrower shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff. Except as
otherwise expressly provided herein, all 

 18
 

 

payments by the Borrower hereunder shall be made to
the Administrative Agent, for the account of the respective Lenders to which
such payment is owed, at the Administrative Agent’s Office in Dollars and in
immediately available funds not later than 11:00 a.m. on the date
specified herein. The Administrative Agent will promptly distribute to each
Lender its Applicable Percentage (or other applicable share as provided herein)
of such payment in like funds as received by wire transfer to such Lender’s
Lending Office. All payments received by the Administrative Agent after 11:00 a.m.
shall be deemed received on the next succeeding Business Day and any applicable
interest or fee shall continue to accrue. If any payment to be made by the
Borrower shall come due on a day other than a Business Day, payment shall be
made on the next following Business Day, and such extension of time shall be
reflected on computing interest or fees, as the case may be.

(b)           Payments by Borrower; Presumptions
by Administrative Agent. Unless the Administrative Agent shall have
received notice from the Borrower prior to the time at which any payment is due
to the Administrative Agent for the account of the Lenders hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders the amount due. In
such event, if the Borrower has not in fact made such payment, then each of the
Lenders severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender, in immediately available funds
with interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the greater of its cost of funds and a rate determined by the
Administrative Agent in accordance with banking industry rules on
interbank compensation. A notice of the Administrative Agent to any Lender or
the Borrower with respect to any amount owing under this subsection (b) shall
be conclusive, absent manifest error.

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

(d)           Funding Source. Nothing herein
shall be deemed to obligate any Lender to obtain the funds for any Loan in any
particular place or manner or to constitute a representation by any Lender that
it has obtained or will obtain the funds for any Loan in any particular place
or manner.

(e)           Insufficient Funds. If at any
time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, interest and fees then due
hereunder, such funds shall be applied (i) first, toward payment of
interest and fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such
parties, and (ii) second, toward payment of principal then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal then due to such parties.

 19

 

 

2.09.       Sharing of Payments by Lenders. If any Lender shall, by
exercising any right of setoff or counterclaim or otherwise, obtain payment in
respect of (a) Obligations due and payable to such Lender hereunder and
under the other Loan Documents at such time in excess of its ratable share
(according to the proportion of (i) the amount of such Obligations due and
payable to such Lender at such time to (ii) the aggregate amount of the
Obligations due and payable to all Lenders hereunder and under the other Loan
Documents at such time) of payments on account of the Obligations due and
payable to all Lenders hereunder and under the other Loan Documents at such
time obtained by all the Lenders at such time or (b) Obligations owing
(but not due and payable) to such Lender hereunder and under the other Loan
Documents at such time in excess of its ratable share (according to the
proportion of (i) the amount of such Obligations owing (but not due and
payable) to such Lender at such time to (ii) the aggregate amount of the
Obligations owing (but not due and payable) to all Lenders hereunder and under
the other Loan Parties at such time) of payment on account of the Obligations
owing (but not due and payable) to all Lenders hereunder and under the other
Loan Documents at such time obtained by all of the Lenders at such time then
the Lender receiving such greater proportion shall (a) notify the
Administrative Agent of such fact, and (b) purchase (for cash at face
value) participations in the Loans of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of Obligations then due and payable to the Lenders or owing (but not due and
payable) to the Lenders, as the case may be, provided that:

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

(ii)           the provisions of this Section shall
not be construed to apply to (A) any payment made by the Borrower pursuant
to and in accordance with the express terms of this Agreement or (B) any
payment obtained by a Lender as consideration for the assignment of or sale of
a participation in any of its Loans, other than to the Borrower or any
Subsidiary thereof (as to which the provisions of this Section shall
apply).

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

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

 20
 

 

 

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

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

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

(e)           Status of Lenders. Any Foreign
Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is resident for tax
purposes, or any treaty to which such jurisdiction is a party, with respect to
payments hereunder or under any other Loan Document shall deliver to the
Borrower  (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent, such properly
completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate of
withholding. In addition, any Lender, if requested by the Borrower or the
Administrative Agent, shall deliver such other documentation prescribed by
applicable law or reasonably requested by the Borrower or the Administrative
Agent as will enable the Borrower or the Administrative Agent to determine
whether or not such Lender is subject to backup withholding or information
reporting requirements.

3.02.       Illegality. If any Lender determines that any Law has
made it unlawful, or that any Governmental Authority has asserted that it is
unlawful, for any Lender or its applicable Lending Office to make, maintain or
fund Eurodollar Rate Loans, or to determine or charge interest rates based upon
the Eurodollar Rate, or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take
deposits of, Dollars in the London interbank market, then, on notice thereof by
such Lender to the Borrower through the Administrative Agent, any obligation of
such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate
Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies
the Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist. Upon receipt of such notice, the Borrower
shall, upon demand from such Lender (with a copy to the Administrative Agent),
prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to
Base Rate Loans, either on the last day of the Interest Period therefor, if
such Lender may lawfully continue to maintain such Eurodollar 

 21
 

 

Rate Loans to such day, or immediately, if such Lender
may not lawfully continue to maintain such Eurodollar Rate Loans. Upon any such
prepayment or conversion, the Borrower shall also pay accrued interest on the
amount so prepaid or converted.

3.03.       Inability to Determine Rates. If the Required Lenders
determine that for any reason in connection with any request for a Eurodollar
Rate Loan or a conversion to or continuation thereof that (a) Dollar
deposits are not being offered to banks in the London interbank eurodollar
market for the applicable amount and Interest Period of such Eurodollar Rate
Loan, (b) adequate and reasonable means do not exist for determining the
Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan, or (c) the Eurodollar Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Loan does not
adequately and fairly reflect the cost to such Lenders of funding such Loan,
the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter,
the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall
be suspended until the Administrative Agent (upon the instruction of the
Required Lenders) revokes such notice. Upon receipt of such notice, the
Borrower may revoke any pending request for a Borrowing of, conversion to or
continuation of Eurodollar Rate Loans or, failing that, will be deemed to have
converted such request into a request for a Committed Borrowing of Base Rate
Loans in the amount specified therein.

3.04.       Increased Costs; Reserves on Eurodollar Rate Loans.
(a)  Increased Costs Generally. If any Change in Law shall:

(i)            impose, modify or deem applicable
any reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement
contemplated by Section 3.04(e));

(ii)           subject any Lender to any tax of any
kind whatsoever with respect to this Agreement or any Eurodollar Rate Loan made
by it, or change the basis of taxation of payments to such Lender in respect
thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01
and the imposition of, or any change in the rate of, any Excluded Tax payable
by such Lender); or

(iii)          impose on any Lender or the London
interbank market any other condition, cost or expense affecting this Agreement
or Eurodollar Rate Loans made by such Lender;

and the result of
any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make
any such Loan), or to reduce the amount of any sum received or receivable by
such Lender hereunder (whether of principal, interest or any other amount)
then, upon request of such Lender, the Borrower will pay to such Lender such
additional amount or amounts as will compensate such Lender for such additional
costs incurred or reduction suffered.

(b)           Capital Requirements. If any
Lender determines that any Change in Law affecting such Lender or any Lending
Office of such Lender or such Lender’s holding company, 

 22
 

 

if any, regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s capital or on
the capital of such Lender’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, such Lender, to
a level below that which such Lender or such Lender’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s
policies and the policies of such Lender’s holding company with respect to
capital adequacy), then from time to time the Borrower will pay to such Lender
such additional amount or amounts as will compensate such Lender or such Lender’s
holding company for any such reduction suffered.

(c)           Certificates for Reimbursement.
A certificate of a Lender setting forth the amount or amounts necessary to
compensate such Lender or its holding company, as the case may be, as specified
in subsection (a) or (b) of this Section and delivered to the
Borrower shall be conclusive absent manifest error. The Borrower shall pay such
Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

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

(e)           Reserves on Eurodollar Rate Loans.
The Borrower shall pay to each Lender, as long as such Lender shall be required
to maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency funds or deposits (currently known as “Eurocurrency
liabilities”), additional interest on the unpaid principal amount of each
Eurodollar Rate Loan equal to the actual costs of such reserves allocated to
such Loan by such Lender (as determined by such Lender in good faith, which
determination shall be conclusive), which shall be due and payable on each date
on which interest is payable on such Loan, provided the Borrower shall
have received at least 10 days’ prior notice (with a copy to the Administrative
Agent) of such additional interest from such Lender. If a Lender fails to give
notice 10 days prior to the relevant Interest Payment Date, such additional
interest shall be due and payable 10 days from receipt of such notice.

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

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

 23
 

 

 

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

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

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

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

3.06.       Mitigation Obligations; Replacement of Lenders.

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

(b)           Replacement of Lenders. If any
Lender requests compensation under Section 3.04, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01,
the Borrower may replace such Lender in accordance with Section 10.13.

3.07.       Survival. All of the Borrower’s obligations under this Article III
shall survive termination of the Aggregate Commitments and repayment of all
other Obligations hereunder.

ARTICLE IV.

CONDITIONS PRECEDENT TO BORROWING

4.01.       Conditions of Borrowing. The obligation of each Lender
to make a Borrowing hereunder is subject to satisfaction of the following
conditions precedent:

 24
 

 

 

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

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

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

(iii)          such certificates of resolutions or
other action, incumbency certificates and/or other certificates of Responsible
Officers of each Loan Party as the Administrative Agent may require evidencing
the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Agreement
and the other Loan Documents to which such Loan Party is a party or is to be a
party;

(iv)          such documents and certifications as
the Administrative Agent may reasonably require to evidence that each Loan
Party is duly organized or formed, and that each the Borrower is validly
existing, in good standing and qualified to engage in business in Singapore,
and the Guarantor is validly existing, in good standing and qualified to engage
in business in Delaware and California;

(v)           such documents and certifications as
the Administrative Agent may reasonably require to comply with Section 10.17
hereof, including without limitation, photocopies of the passports of all
individuals executing any Loan Documents on behalf of the Borrower;

(vi)          a favorable opinion of Sheppard,
Mullin, Richter & Hampton LLP, counsel to the Loan Parties, addressed
to the Administrative Agent and each Lender, as to such matters concerning the
Loan Parties and the Loan Documents as the Required Lenders may reasonably
request;

(vii)         a favorable opinion of DLA Piper
Rudnick, local counsel to the Loan Parties in Singapore, addressed to the
Administrative Agent and each Lender, as to such matters concerning the Loan
Parties and the Loan Documents as the Required Lenders may reasonably request;

(viii)         a
certificate of a Responsible Officer of each Loan Party either (A) attaching
copies of all consents, licenses and approvals required in connection with the
execution, delivery and performance by such Loan Party and the validity against
such Loan Party of the Loan Documents to which it is a party, and such
consents, licenses and approvals shall be in full force and effect, or (B) stating
that no such consents, licenses or approvals are so required;

 25
 

 

 

(ix)           The representations and warranties of
the Borrower contained in Article V or any other Loan Document, or
which are contained in any document furnished at any time under or in
connection herewith or therewith, shall be true and correct;

(x)            No Default shall exist, or would
result from such proposed Borrowing or from the application of the proceeds
thereof;

(xi)           The Administrative Agent shall have
received a Request for Credit Extension in accordance with the requirements
hereof; and

(xii)          such other assurances, certificates,
documents, consents or opinions as the Administrative Agent or any Lender
reasonably may require.

(b)           (i) All fees required to be paid
to the Administrative Agent and the Arranger on or before the Closing Date
shall have been paid and (ii) all fees required to be paid to the Lenders
on or before the Closing Date shall have been paid.

(c)           Unless waived by the Administrative
Agent, the Borrower shall have paid all fees, charges and disbursements of
counsel to the Administrative Agent (directly to such counsel if requested by
the Administrative Agent) to the extent invoiced prior to or on the Closing
Date, plus such additional amounts of such fees, charges and disbursements as
shall constitute its reasonable estimate of such fees, charges and
disbursements incurred or to be incurred by it through the closing proceedings
(provided that such estimate shall not thereafter preclude a final
settling of accounts between the Borrower and the Administrative Agent).

(d)           The Closing Date shall have occurred
on or before June 28, 2006.

Without limiting
the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the
Administrative Agent and the Lenders that:

5.01.       Existence, Qualification and Power. Borrower (a) is
duly organized or formed, validly existing and, as applicable, in good standing
under the Laws of the jurisdiction of its incorporation or organization, (b) has
all requisite power and authority and all requisite governmental licenses,
authorizations, consents and approvals to (i) own or lease its assets and
carry on its business and (ii) execute, deliver and perform its obligations
under the Loan Documents and Related Documents to which it is a party and
consummate the Transaction, and (c) is duly qualified and is licensed and,
as applicable, in good standing under the Laws of each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business 

 26
 

 

requires such qualification or license; except in each
case referred to in clause (b)(i) or (c), to the extent that failure to do
so could not reasonably be expected to have a Material Adverse Effect.

5.02.       Authorization; No Contravention. The execution,
delivery and performance by Borrower of each Loan Document to which such Person
is or is to be a party have been duly authorized by all necessary corporate or
other organizational action, and do not and will not (a) contravene the
terms of any of such Person’s Organization Documents; (b) conflict with or
result in any breach or contravention of, or the creation of any Lien under, or
require any payment to be made under (i) any Contractual Obligation to
which such Person is a party or affecting such Person or the properties of such
Person or any of its Subsidiaries or (ii) any order, injunction, writ or
decree of any Governmental Authority or any arbitral award to which such Person
or its property is subject; or (c) violate any Law.

5.03.       Governmental Authorization; Other Consents. No
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person is necessary or
required in connection with (a) the execution, delivery or performance by,
or enforcement against, any Loan Party of this Agreement or any other Loan
Document, or (b) the exercise by the Administrative Agent or any Lender of
its rights under the Loan Documents.

5.04.       Binding Effect. This Agreement has been, and each other
Loan Document, when delivered hereunder, will have been, duly executed and
delivered by Borrower. This Agreement constitutes, and each other Loan Document
when so delivered will constitute, a legal, valid and binding obligation of
such Borrower, enforceable against it in accordance with its terms, except as
such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws relating to or limiting creditors’ rights
generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).

5.05.       Financial Statements; No Material Adverse Effect.

(a)           The Audited Financial Statements are
properly drawn up in accordance with the Singapore Financial Reporting
Standards.

(b)           The unaudited consolidated balance
sheet of the Borrower and its Subsidiaries dated April 30, 2006, and the
related consolidated statements of income or operations, shareholders’ equity
and cash flows for the fiscal quarter ended on that date were prepared in
accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein, subject to the absence of
footnotes and to normal year-end audit adjustments.

(c)           Since the date of the Audited
Financial Statements, there has been no event or circumstance, either
individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect.

5.06.       Litigation. There are no actions, suits, proceedings,
claims or disputes pending or, to the knowledge of the Borrower after due and
diligent investigation, threatened or contemplated, at law, in equity, in
arbitration or before any Governmental Authority, by or against the Borrower or
any of its Subsidiaries or against any of their properties or revenues that 

 27
 

 

purport to affect or pertain to this Agreement, or any
other Loan Document, either individually or in the aggregate, that could
reasonably be expected to have a Material Adverse Effect.

5.07.       No Default. Neither Borrower nor any Subsidiary thereof
is in default under or with respect to, or a party to, any Contractual
Obligation that could, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. No Default has occurred and is
continuing or would result from the consummation of the transactions
contemplated by this Agreement or any other Loan Document.

5.08.       Ownership of Property; Liens; Investments. Schedule 5.08
sets forth a complete and accurate list of all Liens on the property or assets
of Borrower and each of its Subsidiaries, showing as of the date hereof the
lienholder thereof, the principal amount of the obligations secured thereby and
the property or assets of Borrower or such Subsidiary subject thereto. The
property of Borrower and each of its Subsidiaries is subject to no Liens, other
than Liens set forth on Schedule 5.08, and as otherwise permitted
by Section 7.01.

5.09.       Insurance. The properties of the Borrower is insured with
financially sound and reputable insurance companies not Affiliates of the
Borrower, in such amounts,  with such
deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where
the Borrower operates.

5.10.       Taxes. The Borrower has filed all Singapore and other
material tax returns and reports required to be filed, and has paid all
Singapore and other material taxes, assessments, fees and other governmental
charges levied or imposed upon it or its properties, income or assets otherwise
due and payable, except those which are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves
have been provided in accordance with GAAP. There is no proposed tax assessment
against the Borrower that would, if made, have a Material Adverse Effect.

5.11.       Employee Benefit Plans. With respect to each scheme or
arrangement mandated by a government other than the United States (a “Foreign
Government Scheme or Arrangement”) and with respect to each employee
benefit plan maintained or contributed to the Borrower (a “Foreign Plan”),
any employer and employee contributions required by Law or by the terms of any
Foreign Plan to be paid by the Borrower have been made, or, if applicable,
accrued, in accordance with normal accounting practices in all material
respects;

5.12.       Subsidiaries; Equity Interests; Loan Parties. The
Borrower has no Subsidiaries. The Borrower has no equity investments in any
other corporation or entity other than those specifically disclosed in Part (a) of
Schedule 5.12. All of the outstanding Equity Interests in the Borrower
have been validly issued, are fully paid and non-assessable and are owned by
Guarantor free and clear of all Liens except as specified on Schedule 5.12.
Set forth on Part (b) of Schedule 5.12 is a complete and
accurate list of all Loan Parties, showing as of the Closing Date (as to each
Loan Party) the jurisdiction of its incorporation, the address of its principal
place of business and its U.S. taxpayer identification number or, in the case
of any non-U.S. Loan Party that does not have a U.S. taxpayer identification
number, its unique identification number issued to it by the jurisdiction of
its incorporation. The copy of the charter

 28

 

 

of each Loan Party and each amendment thereto provided
pursuant to Section 4.01(a) is a true and correct copy of each
such document, each of which is valid and in full force and effect.

5.13.       Disclosure. The Borrower has disclosed to the
Administrative Agent and the Lenders all agreements, instruments and corporate
or other restrictions to which it is subject, and all other matters known to
it, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect. No report, financial statement,
certificate or other information furnished (whether in writing or orally), when
such information is taken together as a whole, by or on behalf of any Loan
Party to the Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered
hereunder or under any other Loan Document (in each case as modified or
supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial
information, the Borrower represents only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time.

5.14.       Compliance with Laws. Borrower is in compliance in all
material respects with the requirements of all Laws and all orders, writs,
injunctions and decrees applicable to it or to its properties, except in such
instances in which (a) such requirement of Law or order, writ, injunction
or decree is being contested in good faith by appropriate proceedings
diligently conducted or (b) the failure to comply therewith, either
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

5.15.       Solvency. Borrower is Solvent.

ARTICLE VI.

AFFIRMATIVE COVENANTS

So long as any Lender shall have any Commitment
hereunder, or any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied, the Borrower shall, and shall (except in the case of the covenants
set forth in Sections 6.01, 6.02, 6.03 and 6.11)
cause each Subsidiary to:

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

(a)           as soon as available, but in any
event within 180 days after the end of each fiscal year of the Borrower, a
consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such fiscal year, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal year, and in
the case of the statements of income or operations and shareholders’ equity
setting forth in comparative form the figures for the previous fiscal year, in
each case all in reasonable detail and prepared in accordance with GAAP,
audited and accompanied by a report and opinion of accountants reasonably
acceptable to the Required Lenders, which report and opinion shall be prepared
in accordance with generally accepted auditing standards and shall not be
subject to any “going concern” or like 

 29
 

 

qualification or exception or any qualification or
exception as to the scope of such audit or with respect to the absence of any
material misstatement;

(b)           as soon as available, but in any
event within 45 days after the end of each fiscal quarter of the Borrower, a
consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such fiscal quarter, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal quarter and for
the portion of the Borrower’s fiscal year then ended, all in reasonable detail,
certified by one of the directors or controller of the Borrower as fairly
presenting the financial condition, results of operations, shareholders’ equity
and cash flows of the Borrower and its Subsidiaries in accordance with GAAP,
subject only to normal year-end audit adjustments and the absence of footnotes;

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

(a)           concurrently with the delivery of the
financial statements referred to in Sections 6.01(a) and (b) a
duly completed Compliance Certificate signed by one of the directors, the chief
executive officer or controller of the Borrower;

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

(c)           promptly after the furnishing
thereof, copies of any statement or report furnished to any holder of debt
securities of Borrower pursuant to the terms of any indenture, loan or credit
or similar agreement and not otherwise required to be furnished to the Lenders
pursuant to Section 6.01 or any other clause of this Section 6.02;

(d)           promptly, and in any event within
five Business Days after receipt thereof by the Borrower, copies of each notice
or other correspondence received from any Governmental Authority concerning any
investigation or possible investigation or other inquiry by such agency
regarding financial or other operational results of Borrower which may
reasonably be expected to have a Material Adverse Effect;

(e)           promptly,
such additional information regarding the business, financial, legal or
corporate affairs of Borrower or any Subsidiary thereof, or compliance with the
terms of the Loan Documents, as the Administrative Agent or any Lender may from
time to time reasonably request.

Documents required to be delivered pursuant to Section 6.01(a) or
(b) may be delivered electronically and if so delivered, shall be
deemed to have been delivered on the date (i) on which the Borrower posts
such documents, or provides a link thereto on the Borrower’s website on the
Internet at the website address listed on Schedule 10.02; or (ii) on
which such documents are posted on the Borrower’s behalf on an Internet or
intranet website, if any, to which each Lender and the Administrative Agent
have access (whether a commercial, third-party website or whether sponsored by
the Administrative Agent); provided that:  (i) the Borrower shall deliver 

 30
 

 

paper copies of such
documents to the Administrative Agent or any Lender that requests the Borrower
to deliver such paper copies until a written request to cease delivering paper
copies is given by the Administrative Agent or such Lender and (ii) the
Borrower shall notify the Administrative Agent and each Lender (by telecopier
or electronic mail) of the posting of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft
copies) of such documents. Notwithstanding anything contained herein, in every
instance the Borrower shall be required to provide paper copies of the
Compliance Certificates required by Section 6.02(b) to the
Administrative Agent. Except for such Compliance Certificates, the
Administrative Agent shall have no obligation to request the delivery or to
maintain copies of the documents referred to above, and in any event shall have
no responsibility to monitor compliance by the Borrower with any such request
for delivery, and each Lender shall be solely responsible for requesting delivery
to it or maintaining its copies of such documents.

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

(a)           of the occurrence of any Default;

(b)           of any matter that has resulted or
could reasonably be expected to result in (a) a material adverse change
in, or a material adverse effect upon, the operations, business, properties,
liabilities (actual or contingent), or condition (financial or otherwise) of
the Borrower; (b) a material impairment of the rights and remedies of the
Administrative Agent or any Lender under any Loan Document, or of the ability
of any Loan Party to perform its obligations under any Loan Document to which
it is a party; or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Loan Party of any Loan
Document to which it is a party; and

(c)           of any material change in accounting
policies or financial reporting practices by Borrower or any Subsidiary
thereof.

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

6.04.       Payment of Obligations. Pay and discharge as the same
shall become due and payable, all its obligations and liabilities where the
failure to so pay or discharge would have a Material Adverse Effect (but in the
case of any Indebtedness, the non-payment of which would result in an Event of
Default under Section 8.01(e)), and in any event (a) all tax
liabilities, assessments and governmental charges or levies upon it or its
properties or assets, and (b) all lawful claims which, if unpaid, would by
law become a Lien upon its property; in the case of each of (a) and (b) where
the amount exceeds the Threshold Amount, unless the same are being contested in
good faith by appropriate proceedings or other actions diligently conducted and
adequate reserves in accordance with GAAP are being maintained by the Borrower
or such Subsidiary.

 31
 

 

6.05.       Preservation of Existence, Etc. (a)  Preserve,
renew and maintain in full force and effect its legal existence and good
standing under the Laws of the jurisdiction of its organization except in a
transaction permitted by Section 7.04; (b) take all reasonable
action to maintain all rights, privileges, permits, licenses and franchises
necessary or desirable in the normal conduct of its business, except to the
extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (c) preserve or renew all of its registered
patents, trademarks, trade names and service marks, the non-preservation of
which could reasonably be expected to have a Material Adverse Effect.

6.06.       Maintenance of Insurance. Maintain with financially
sound and reputable insurance companies not Affiliates of the Borrower,
insurance with respect to its properties and business against loss or damage of
the kinds customarily insured against by Persons engaged in the same or similar
business, of such types and in such amounts as are customarily carried under
similar circumstances by such other Persons.

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

6.08.       Books and Records. (a) Maintain proper books of
record and account, sufficient to enable the preparation of financial
statements in conformity with GAAP; and (b) maintain such books of record
and account in material conformity with all applicable requirements of any
Governmental Authority having regulatory jurisdiction over the Borrower or such
Subsidiary, as the case may be.

6.09.       Use of Proceeds. Use the proceeds of the Borrowings for
general corporate purposes not in contravention of any Law or of any Loan
Document.

6.10.       Further Assurances. Promptly upon request by the
Administrative Agent, or any Lender through the Administrative Agent, (a) correct
any material defect or error that may be discovered in any Loan Document or in
the execution, acknowledgment, filing or recordation thereof, and (b) do,
execute, acknowledge, deliver, record, re-record, file, re-file, register and
re-register any and all such further acts, deeds, certificates, assurances and
other instruments as the Administrative Agent, or any Lender through the
Administrative Agent, may reasonably require from time to time in order to
carry out more effectively the purposes of the Loan Documents.

ARTICLE VII.

NEGATIVE COVENANTS

So long as any Lender shall have any Commitment
hereunder, or any Loan or other Obligation hereunder shall remain unpaid or
unsatisfied, the Borrower shall not, nor shall it permit any Subsidiary to,
directly or indirectly:

7.01.       Liens. At any time after the Revolving Credit Agreement
has terminated, create, incur, assume or suffer to exist any Lien upon any of
its property, assets or revenues, whether 

 32
 

 

now owned or hereafter acquired, or sign or file or
suffer to exist under the Uniform Commercial Code of any jurisdiction a
financing statement that names the Borrower or any of its Subsidiaries as
debtor, or assign any accounts or other right to receive income, other than the
following:

(a)           Liens existing on the date hereof and
listed on Schedule 5.08 and any renewals or extensions thereof, provided
that (i) the property covered thereby is not changed, (ii) the amount
secured or benefited thereby is not increased except as contemplated by Section 7.02(b),
or with respect to the Liens shown on Schedule 5.08, Section 7.02(c),
(iii) the direct or any contingent obligor with respect thereto is not
changed, and (iv) any renewal or extension of the obligations secured or
benefited thereby is permitted by Section 7.02(b);

(b)           Liens for taxes not yet due or which
are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

(c)           carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business, and including Liens in respect of suppliers arising by operation
of Law, which are not overdue for a period of more than 30 days or which are
being contested in good faith and by appropriate proceedings diligently conducted,
if adequate reserves with respect thereto are maintained on the books of the
applicable Person;

(d)           pledges or deposits in the ordinary
course of business in connection with workers’ compensation, unemployment
insurance and other social security legislation, other than any Lien imposed by
a Foreign Government Scheme or Arrangement;

(e)           deposits to secure the performance of
bids, supplier or trade contracts and leases (other than Indebtedness),
statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature incurred in the ordinary course of business;

(f)            easements, rights-of-way,
restrictions and other similar encumbrances affecting real property which, in
the aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the applicable Person;

(g)           Liens securing judgments for the
payment of money not constituting an Event of Default under Section 8.01(h);

(h)           Liens securing Indebtedness permitted
under Section 7.02(d); provided that (i) such Liens do
not at any time encumber any property other than the property financed by such
Indebtedness and (ii) the Indebtedness secured thereby does not exceed the
cost or fair market value, whichever is lower, of the property being acquired
on the date of acquisition; and

(i)            other Liens securing Indebtedness
outstanding in an aggregate principal amount not to exceed $2,000,000.

7.02.       Indebtedness. Create, incur, assume or suffer to exist
any Indebtedness, except:

(a)           Indebtedness under the Loan
Documents;

 33
 

 

(b)           Indebtedness outstanding on the date
hereof as shown on the financial statements of Borrower provided to the
Administrative Agent (which, in the case of each item of Indebtedness in excess
of $1,000,000 is also listed on Schedule 7.02) and any
refinancings, refundings, replacements, renewals or extensions thereof; provided
that the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses
reasonably incurred, in connection with such refinancing and by an amount equal
to any existing commitments unutilized thereunder, as a result of or in
connection with such refinancing, refunding, renewal or extension;

(c)           Guarantees of the Borrower and any of
its Subsidiaries in respect of (i) the Revolving Credit Agreement, and in
respect of any refinancings, refundings, replacements, renewals or extensions
thereof provided that the aggregate principal amount of the related lending
commitments are not increased to an amount which is in excess of $150,000,000,
and of Swap Contracts and other related obligations of the Guarantor to the
extent permitted under the Revolving Credit Agreement, up to $750,000,000, and (ii) Indebtedness
otherwise permitted hereunder of the Borrower and its Subsidiaries;

(d)           Indebtedness in respect of
Capitalized Leases, Synthetic Lease Obligations and purchase money obligations
for fixed or capital assets within the limitations set forth in Section 7.01(h);
provided, however, that the aggregate amount of all such
Indebtedness at any one time outstanding shall not exceed $5,000,000;

(e)           Swap Contracts consisting of foreign
currency transactions having a tenor of not more than 60 days, and other Swap
Contracts with respect to Indebtedness in an aggregate notional amount not in
excess of the amount of the Loans; and

(f)            unsecured Indebtedness in an
aggregate principal amount not to exceed $5,000,000 at any time outstanding.

For purposes of this Section 7.02, any item of Indebtedness
incurred under this Section will be separately valued for exchange rate
purposes as of the date of its incurrence and no Event of Default shall result
under this Section solely as a result of foreign currency movements
thereafter.

7.03.       Investments. Make or hold any Investments, except:

(a)           Investments held by the Borrower and
its Subsidiaries in the form of Cash Equivalents;

(b)           (i) Investments by the Borrower
and its Subsidiaries in their respective Subsidiaries outstanding on the date
hereof, (ii) additional Investments by the Borrower and its Subsidiaries
in Loan Parties, (iii) additional Investments by Subsidiaries of the
Borrower that are not Loan Parties in other Subsidiaries that are not Loan
Parties and (iv) so long as no Default has occurred and is continuing or
would result from such Investment, additional Investments by the Loan Parties in
Subsidiaries that are not Loan Parties in an aggregate amount invested from the
date hereof not to exceed $500,000;

 34
 

 

(c)           Investments consisting of extensions
of credit in the nature of accounts receivable or notes receivable arising from
the grant of trade credit in the ordinary course of business, and Investments
received in satisfaction or partial satisfaction thereof from financially
troubled account debtors to the extent reasonably necessary in order to prevent
or limit loss;

(d)           Guarantees permitted by Section 7.02;

(e)           Investments existing on the date
hereof (other than those referred to in Section 7.03(c)(i)) and set
forth on Schedule 5.08;

(f)            Investments under
Swap Contracts permitted by Section 7.02;

(g)           Investments made in
third party customers and subcontractors not exceeding $5,000,000 in the
aggregate;

(h)           Investments
consisting of the purchase by the Borrower on or prior to June 30, 2006 of
intercompany indebtedness owed to the Guarantor by IR Newport Limited in an
aggregate amount not to exceed $81,000,000;

(i)            other Investments
not exceeding $5,000,000 in the aggregate in any fiscal year of the Borrower;
and

(j)            any other
Investments held by the Borrower and its Subsidiaries on the date hereof,
provided that the same are liquidated not later than July 1, 2006.

7.04.       Fundamental Changes. Merge, dissolve, liquidate,
consolidate with or into another Person, or Dispose of (whether in one
transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired) to or in favor of any Person,
except that, so long as no Default exists or would result therefrom:

(a)           any Subsidiary may merge with (i) the
Borrower, provided that the Borrower shall be the continuing or
surviving Person, or (ii) any one or more other Subsidiaries;

(b)           any Subsidiary may dispose of all or
substantially all its assets (including any Disposition that is in the nature
of a liquidation) to (i) another Subsidiary or (ii) to a Borrower;
and

(c)           so long as no Default has occurred and
is continuing or would result therefrom, each
of the Borrower and any of its Subsidiaries may
merge into or consolidate with any other Person or permit any other Person to
merge into or consolidate with it; provided, however, that in
each case, immediately after giving effect thereto in the case of any such
merger to which the Borrower is a party, the Borrower is the surviving
corporation.

7.05.       Restricted Payments. Declare or make, directly or
indirectly, any Restricted Payment, or incur any obligation (contingent or
otherwise) to do so, or issue or sell any Equity Interests (except to the
Guarantor), except that, so long as no Default shall have occurred and be
continuing at the time of any action described below or would result therefrom:

 35
 

 

(a)           each Subsidiary may make Restricted
Payments to the Borrower;

(b)           the Borrower and each Subsidiary may
declare and make dividend payments or other distributions payable solely in the
common stock or other common Equity Interests of such Person; and

(c)           the Borrower may declare or pay cash
dividends to the Guarantor on or before June 30, 2006.

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

7.07.       Transactions with Affiliates. Permit the relationship
between the Borrower and its Subsidiaries, on the one hand, and the Guarantor
and its other Subsidiaries, on the other hand, or any material transactions
amongst them, when taken as a whole, to be other than on terms which are either
(a) materially consistent with those in place during the Borrower’s fiscal
year ended April 2006, or (b) at least as favorable to the Borrower
or such Subsidiary as would be obtainable by the Borrower and its Subsidiaries
at the time in a comparable arm’s length transaction with a Person other than
an Affiliate.

7.08.       Burdensome Agreements. At any time after the Revolving
Credit Agreement has terminated, enter into or permit to exist any Contractual
Obligation (other than this Agreement or any other Loan Document) that (a) limits
the ability (i) of any Subsidiary to make Restricted Payments to the
Borrower or any Guarantor or to otherwise transfer property to or invest in the
Borrower or any Guarantor, except for any agreement in effect (A) on the
date hereof and set forth on Schedule 7.08 or (B) at the time any
Subsidiary becomes a Subsidiary of the Borrower, so long as such agreement was
not entered into solely in contemplation of such Person becoming a Subsidiary
of the Borrower, (ii) of any Subsidiary to Guarantee the Indebtedness of
the Borrower or (iii) of the Borrower or any Subsidiary to create, incur,
assume or suffer to exist Liens on property of such Person; provided, however,
that this clause (iii) shall not prohibit any negative pledge provided to
the holder of Indebtedness permitted under Section 7.02(d) solely
to the extent any such negative pledge relates to the property financed by or
the subject of such Indebtedness; or (b) requires the grant of a Lien to
secure an obligation of such Person if a Lien is granted to secure another
obligation of such Person.

7.09.       Financial Covenants. (a)  Minimum EBITDA.
Permit Consolidated EBITDA at any time during any period of four fiscal
quarters of the Borrower to be less than $75,000,000, or for any single fiscal
quarter of the Borrower to be less than $10,000,000.

7.10.       Accounting Changes. Make any change in (a) accounting
policies or reporting practices, except as required by GAAP, or (b) fiscal
year.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

8.01.       Events of Default. Any of the following shall
constitute an Event of Default:

 36
 

 

(a)           Non-Payment. The Borrower
fails to (i) pay when and as required to be paid herein, any amount of
principal of any Loan, or (ii) pay within three days after the same
becomes due, any interest on any Loan, or any fee due hereunder, or (iii) pay
within thirty days after the same becomes due, any other amount payable
hereunder or under any other Loan Document; or

(b)           Specific Covenants. The
Borrower fails to perform or observe any term, covenant or agreement contained
in any of Section 6.01, 6.02, 6.03, 6.05, 6.09,
6.10, or Article VII, provided that no such failure to
perform or observe the covenants set forth in Section 7.02, 7.03 or 7.07,
in each case to the extent resulting from (i) an item of Indebtedness in
an amount which is less than $1,000,000, (ii) the existence of an
Investment in an amount which is less than $1,000,000, or (iii) any
transaction or series of related transactions pursuant to Section 7.07
involving property of less than $1,000,000, shall be deemed to constitute an
Event of Default during the ten (10) Business Day period following the
earlier of the date upon which the Administrative Agent notifies the Borrower
thereof, or the Borrower or the Guarantor otherwise becomes aware that such
failure would otherwise breach this Agreement; or

(c)           Other Defaults. The Borrower
fails to perform or observe any other covenant or agreement (not specified in Section 8.01(a) or
(b) above) contained in any Loan Document on its part to be
performed or observed and such failure continues for 30 days; or

(d)           Representations and Warranties.
Any representation, warranty, certification or statement of fact made or deemed
made by or on behalf of the Borrower or any other Loan Party herein, in any
other Loan Document, or in any document delivered in connection herewith or
therewith shall be incorrect or misleading when made or deemed made in any
material respect; or

(e)           Cross-Default. (i) The
Borrower (A) fails to make any payment when due (whether by scheduled
maturity, required prepayment, acceleration, demand, or otherwise) in respect
of any Indebtedness or Guarantee (other than Indebtedness hereunder) having an
aggregate principal amount (including undrawn committed or available amounts
and including amounts owing to all creditors under any combined or syndicated
credit arrangement) of more than the Threshold Amount, or (B) fails to
observe or perform any other agreement or condition relating to any such
Indebtedness or Guarantee or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, the effect
of which default or other event is to cause, or to permit the holder or holders
of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or
a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased, prepaid,
defeased or redeemed (automatically or otherwise), or an offer to repurchase,
prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity,
or such Guarantee to become payable or cash collateral in respect thereof to be
demanded; or (ii) there occurs under any Swap Contract an Early
Termination Date (as defined in such Swap Contract) resulting from (A) any
event of default under such Swap Contract as to which the Borrower is the
Defaulting Party (as defined in such Swap Contract) or (B) any Termination
Event (as so defined) under such Swap Contract as to which the Borrower is an
Affected Party (as so defined) and, in either event, the Swap Termination Value
owed by such Loan Party or such Subsidiary as a result thereof is greater than
the Threshold Amount; or

 37

 

(f)            Insolvency Proceedings, Etc. The
Borrower institutes or consents to the institution of any proceeding under any
Debtor Relief Law, or makes an assignment for the benefit of creditors; or
applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator, judicial manager or similar officer for
it or for all or any material part of its property; or any receiver, trustee,
custodian, conservator, liquidator, rehabilitator, judicial manager or similar
officer is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or
any material part of its property is instituted without the consent of such
Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or

(g)           Inability to Pay Debts; Attachment.
(i) The Borrower becomes unable or admits in writing its inability or
fails generally to pay its debts as they become due, or (ii) any writ or
warrant of attachment or execution or similar process is issued or levied
against all or any material part of the property of any such Person and is not
released, vacated or fully bonded within 30 days after its issue or levy; or

(h)           Judgments. There is entered
against the Borrower (i) one or more final judgments or orders for the
payment of money in an aggregate amount (as to all such judgments and orders)
exceeding the Threshold Amount (to the extent not covered by independent
third-party insurance as to which the insurer is rated at least “A” by A.M.
Best Company, has been notified of the potential claim and does not dispute
coverage), or (ii) any one or more non-monetary final judgments that have,
or could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect and, in either case, (A) enforcement proceedings
are commenced by any creditor upon such judgment or order, or (B) there is
a period of 10 consecutive days during which a stay of enforcement of such
judgment, by reason of a pending appeal or otherwise, is not in effect; or

(i)            Invalidity of Loan Documents.
Any provision of any Loan Document, at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or
thereunder or satisfaction in full of all the Obligations, ceases to be in full
force and effect; or any Loan Party or any other Person contests in any manner
the validity or enforceability of any provision of any Loan Document; or any
Loan Party denies that it has any or further liability or obligation under any
provision of any Loan Document, or purports to revoke, terminate or rescind any
provision of any Loan Document; or

(j)            Change of Control. There
occurs any Change of Control.

(k)           Declared Company.
The Borrower is declared by the Minister of Finance to be a company to which Part IX
of the Companies Act, Chapter 50 of Singapore, applies.

8.02.       Remedies upon Event of Default. If any Event of Default
occurs and is continuing, the Administrative Agent shall, at the request of, or
may, with the consent of, the Required Lenders, take any or all of the
following actions:

(a)           declare the unpaid principal amount
of all outstanding Loans, all interest accrued and unpaid thereon, and all
other amounts owing or payable hereunder or under any other Loan 

 38
 

 

Document to be immediately due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by the Borrower; and

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

provided, however, that upon
the occurrence of an actual or deemed entry of an order for relief with respect
to the Borrower under the Bankruptcy Code of the United States or similar law
of Singapore or any other applicable jurisdiction, the obligation of each
Lender to make Loans shall automatically terminate, the unpaid principal amount
of all outstanding Loans and all interest and other amounts as aforesaid shall
automatically become due and payable without further act of the Administrative
Agent or any Lender.

8.03.       Application of Funds. After the exercise of remedies
provided for in Section 8.02 (or after the Loans have automatically
become immediately due and payable), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following order

First, to payment of that portion of
the Obligations constituting fees, indemnities, expenses and other amounts
(including fees, charges and disbursements of counsel to the Administrative
Agent and amounts payable under Article III) payable to the
Administrative Agent in its capacity as such;

Second, to payment of that portion
of the Obligations constituting fees, indemnities and other amounts (other than
principal and interest) payable to the Lenders (including fees, charges and
disbursements of counsel to the respective Lenders and amounts payable under Article III,
ratably among them in proportion to the respective amounts described in this
clause Second payable to them;

Third, to payment of that portion of
the Obligations constituting accrued and unpaid interest on the Loans and other
Obligations, ratably among the Lenders in proportion to the respective amounts
described in this clause Third payable to them;

Fourth, to payment of that portion
of the Obligations constituting unpaid principal of the Loans, ratably among
the Lenders in proportion to the respective amounts described in this clause Fourth
held by them; and

Last, the balance, if any, after all
of the Obligations have been indefeasibly paid in full, to the Borrower or as
otherwise required by Law.

ARTICLE IX.

ADMINISTRATIVE AGENT

9.01.       Appointment and Authority. Each of the Lenders hereby
irrevocably appoints Bank of America to act on its behalf as the Administrative
Agent hereunder and under the other Loan Documents and authorizes the
Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental
thereto. The 

 39
 

 

provisions of this Article are solely for the
benefit of the Administrative Agent and the Lenders and neither the Borrower
nor any other Loan Party shall have rights as a third party beneficiary of any
of such provisions.

9.02.       Rights as a Lender. The Person serving as the
Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it
were not the Administrative Agent and the term “Lender” or “Lenders” shall,
unless otherwise expressly indicated or unless the context otherwise requires,
include the Person serving as the Administrative Agent hereunder in its
individual capacity. Such Person and its Affiliates may accept deposits from,
lend money to, act as the financial advisor or in any other advisory capacity
for and generally engage in any kind of business with the Borrower or any
Subsidiary or other Affiliate thereof as if such Person were not the
Administrative Agent hereunder and without any duty to account therefor to the
Lenders.

9.03.       Exculpatory Provisions. The Administrative Agent shall
not have any duties or obligations except those expressly set forth herein and
in the other Loan Documents. Without limiting the generality of the foregoing,
the Administrative Agent:

(a)           shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default has occurred and is
continuing;

(b)           shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent is required to exercise as directed in writing by
the Required Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose the Administrative Agent
to liability or that is contrary to any Loan Document or applicable law; and

(c)           shall not, except as expressly set
forth herein and in the other Loan Documents, have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to
the Borrower or any of its Affiliates that is communicated to or obtained by
the Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

The Administrative Agent shall not be liable for any
action taken or not taken by it (i) with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary, or as the Administrative Agent shall believe in good faith
shall be necessary, under the circumstances as provided in Sections 10.01
and 8.02) or (ii) in the absence of its own gross negligence or
willful misconduct. The Administrative Agent shall be deemed not to have
knowledge of any Default unless and until notice describing such Default is
given to the Administrative Agent by the Borrower or a Lender.

The Administrative Agent shall not be responsible for
or have any duty to ascertain or inquire into (i) any statement, warranty
or representation made in or in connection with this Agreement or any other
Loan Document, (ii) the contents of any certificate, report or other
document delivered hereunder or thereunder or in connection herewith or
therewith, (iii) the 

 40
 

 

performance or observance
of any of the covenants, agreements or other terms or conditions set forth
herein or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

9.04.       Reliance by Administrative Agent. The Administrative
Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. In determining compliance with any
condition hereunder to the making of a Loan that, by its terms, must be
fulfilled to the satisfaction of a Lender, the Administrative Agent may presume
that such condition is satisfactory to such Lender unless the Administrative
Agent shall have received notice to the contrary from such Lender prior to the
making of such Loan. The Administrative Agent may consult with legal counsel
(who may be counsel for the Borrower), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not
taken by it in accordance with the advice of any such counsel, accountants or
experts.

9.05.       Delegation of Duties. The Administrative Agent may
perform any and all of its duties and exercise its rights and powers hereunder
or under any other Loan Document by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties. The exculpatory provisions
of this Article shall apply to any such sub-agent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

9.06.       Resignation of Administrative Agent. The Administrative
Agent may at any time give notice of its resignation to the Lenders and the
Borrower. Upon receipt of any such notice of resignation, the Required Lenders
shall have the right, in consultation with the Borrower, to appoint a
successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States. If no such
successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative
Agent gives notice of its resignation, then the retiring Administrative Agent
may on behalf of the Lenders, appoint a successor Administrative Agent meeting
the qualifications set forth above; provided that if the Administrative
Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective
in accordance with such notice and (a) the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder and under the
other Loan Documents and (b) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender directly, until such time as the
Required Lenders appoint a successor Administrative Agent as provided for above
in this Section. Upon the acceptance of a successor’s appointment 

 41
 

 

as Administrative Agent hereunder, such successor
shall succeed to and become vested with all of the rights, powers, privileges
and duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). The fees payable by the Borrower
to a successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such successor. After
the retiring Administrative Agent’s resignation hereunder and under the other
Loan Documents, the provisions of this Article and Section 10.04
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as Administrative Agent.

9.07.       Non-Reliance on Administrative Agent and Other Lenders.
Each Lender acknowledges that it has, independently and without reliance upon
the Administrative Agent or any other Lender or any of their Related Parties
and based on such documents and information as it has deemed appropriate, made
its own credit analysis and decision to enter into this Agreement. Each Lender
also acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and
based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or any related
agreement or any document furnished hereunder or thereunder.

9.08.       No Other Duties, Etc. Anything herein to the contrary
notwithstanding, none of the Bookrunners or Arrangers listed on the cover page hereof
shall have any powers, duties or responsibilities under this Agreement or any
of the other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent or a Lender hereunder.

9.09.       Administrative Agent May File Proofs of Claim. In
case of the pendency of any proceeding under any Debtor Relief Law or any other
judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Loan shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Borrower)
shall be entitled and empowered, by intervention in such proceeding or
otherwise

(a)           to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the
Loans, and all other Obligations that are owing and unpaid and to file such
other documents as may be necessary or advisable in order to have the claims of
the Lenders, and the Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Lenders,
and the Administrative Agent and their respective agents and counsel and all
other amounts due the Lenders, and the Administrative Agent under Sections  2.05 and 10.04) allowed in such
judicial proceeding; and

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

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator, judicial manager or other similar official in any
such judicial proceeding is hereby authorized by each Lender to make such 

 42
 

 

payments to the Administrative Agent and, if the
Administrative Agent shall consent to the making of such payments directly to
the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.05 and 10.04.

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

9.10.       Guaranty Matters. Upon request by the Administrative
Agent at any time, the Required Lenders will confirm in writing the
Administrative Agent’s authority to release any Guarantor from its obligations
under the Guaranty pursuant to this Section 9.10. The
Administrative Agent will, at the Borrower’s expense, execute and deliver to
the applicable Loan Party such documents as such Loan Party may reasonably
request to release such Guarantor from its obligations under the Guaranty, in
each case in accordance with the terms of the Loan Documents and this Section 9.10.

ARTICLE X.

MISCELLANEOUS

10.01.     Amendments, Etc. No amendment or waiver of any
provision of this Agreement or any other Loan Document, and no consent to any
departure by the Borrower or any other Loan Party therefrom, shall be effective
unless in writing signed by the Required Lenders and the Borrower or the
applicable Loan Party, as the case may be, and acknowledged by the
Administrative Agent, and each such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall:

(a)           waive any condition set forth in Section 4.01
(other than Section 4.01(b)(i) or (c)), without the
written consent of each Lender;

(b)           extend or increase the Commitment of
any Lender (or reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

(c)           postpone any date fixed by this
Agreement or any other Loan Document for any payment of principal, interest,
fees or other amounts due to the Lenders (or any of them) hereunder or under
such other Loan Document without the written consent of each Lender entitled to
such payment;

(d)           reduce the principal of, or the rate
of interest specified herein on, any Loan or any fees or other amounts payable
hereunder or under any other Loan Document without the written consent of each
Lender entitled to such amount; provided, however, that only the
consent of the 

 43
 

 

Required Lenders shall be necessary to amend the
definition of “Default Rate” or to waive any obligation of the Borrower to pay
interest at the Default Rate,

(e)           change (i) Section 8.03
in a manner that would alter the pro rata sharing of payments required thereby
without the written consent of each Lender;

(f)            change (i) any provision of
this Section 10.01 or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required
to amend, waive or otherwise modify any rights hereunder or make any
determination or grant any consent hereunder;

(g)           release the Guaranty, without the
written consent of each Lender; or

(h)           impose any greater restriction on the
ability of any Lender to assign any of its rights or obligations hereunder
without the written consent of the Required Lenders;

and provided, further, that no
amendment, waiver or consent shall, unless in writing and signed by the Administrative
Agent in addition to the Lenders required above, affect the rights or duties of
the Administrative Agent under this Agreement or any other Loan Document.

10.02.     Notices; Effectiveness; Electronic Communications.
(a)  Notices Generally. Except in the case of notices and
other communications expressly permitted to be given by telephone (and except
as provided in subsection (b) below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopier
as follows, and all notices and other communications expressly permitted
hereunder to be given by telephone shall be made to the applicable telephone
number, as follows:

(i)            if to the Borrower or the
Administrative Agent, to the address, telecopier number, electronic mail
address or telephone number specified for such Person on Schedule 10.02;
and

(ii)           if to any other Lender, to the
address, telecopier number, electronic mail address or telephone number
specified in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or
mailed by certified or registered mail, shall be deemed to have been given when
received; notices sent by telecopier shall be deemed to have been given when
sent (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next
business day for the recipient). Notices delivered through electronic communications
to the extent provided in subsection (b) below shall be effective as
provided in such subsection (b).

(b)           Electronic Communications. Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communication (including e-mail, and Internet or intranet
websites or similar platforms (each a “Platform”)) pursuant to
procedures approved by the Administrative Agent, provided that the
foregoing shall not apply to notices to any Lender pursuant to Article II
if such Lender has notified the Administrative Agent that it is incapable of
receiving notices under such Article by electronic communication. The 

 44
 

 

Administrative Agent or the Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

Unless the Administrative Agent otherwise prescribes, (i) notices
and other communications sent to an e-mail address shall be deemed received
upon the sender’s receipt of an acknowledgement from the intended recipient
(such as by the “return receipt requested” function, as available, return
e-mail or other written acknowledgement), provided that if such notice
or other communication is not sent during the normal business hours of the
recipient, such notice or communication shall be deemed to have been sent at
the opening of business on the next business day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefor.

(c)           The Platform. THE PLATFORM IS
PROVIDED “AS IS” AND “AS AVAILABLE.”  THE
AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF
THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM
LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY
OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY
AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no
event shall the Administrative Agent or any of its Related Parties
(collectively, the “Agent Parties”) have any liability to the Borrower,
any Lender, or any other Person for losses, claims, damages, liabilities or
expenses of any kind (whether in tort, contract or otherwise) arising out of
the Borrower’s or the Administrative Agent’s transmission of Borrower Materials
through the Internet, except to the extent that such losses, claims, damages,
liabilities or expenses are determined by a court of competent jurisdiction by
a final and nonappealable judgment to have resulted from the gross negligence
or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to the Borrower, any
Lender, or any other Person for indirect, special, incidental, consequential or
punitive damages (as opposed to direct or actual damages).

(d)           Change of Address, Etc. Each
of the Borrower and the Administrative Agent may change its address, telecopier
or telephone number for notices and other communications hereunder by notice to
the other parties hereto. Each other Lender may change its address, telecopier
or telephone number for notices and other communications hereunder by notice to
the Borrower and the Administrative Agent. In addition, each Lender agrees to
notify the Administrative Agent from time to time to ensure that the
Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which
notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

 45
 

 

(e)           Reliance by Administrative Agent
and Lenders. The Administrative Agent and the Lenders shall be entitled to
rely and act upon any notices (including telephonic Committed Loan Notices)
purportedly given by or on behalf of the Borrower even if (i) such notices
were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the
terms thereof, as understood by the recipient, varied from any confirmation
thereof. The Borrower shall indemnify the Administrative Agent, each Lender and
the Related Parties of each of them from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Borrower. All telephonic notices to
and other telephonic communications with the Administrative Agent may be
recorded by the Administrative Agent, and each of the parties hereto hereby
consents to such recording.

10.03.     No Waiver; Cumulative Remedies. No failure by any
Lender or the Administrative Agent to exercise, and no delay by any such Person
in exercising, any right, remedy, power or privilege hereunder or under any
other Loan Document 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, and provided under each other Loan Document, are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

10.04.     Expenses; Indemnity; Damage Waiver. (a)  Costs
and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates (including the
reasonable fees, charges and disbursements of counsel for the Administrative
Agent), in connection with the syndication of the credit facilities provided
for herein, the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), and (ii) all out-of-pocket expenses incurred by
the Administrative Agent, or any Lender (including the fees, charges and
disbursements of any counsel for the Administrative Agent, or any Lender), in
connection with the enforcement or protection of its rights (A) in
connection with this Agreement and the other Loan Documents, including its
rights under this Section, or (B) in connection with Loans made hereunder,
including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans.

(b)           Indemnification by the Borrower.
The Borrower shall indemnify the Administrative Agent (and any sub-agent
thereof), each Lender and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses (including the fees, charges and disbursements of any counsel
for any Indemnitee) incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower or any other Loan Party
arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, or, in the
case of the Administrative Agent (and any sub-agent thereof) and its Related
Parties only, the administration of this Agreement and the other Loan
Documents, (ii) any Loan or the use or 

 46
 

 

proposed use of the proceeds therefrom, or (iii) any
actual or prospective claim, litigation, investigation or proceeding relating
to any of the foregoing, whether based on contract, tort or any other theory,
whether brought by a third party or by the Borrower or any other Loan Party,
and regardless of whether any Indemnitee is a party thereto, in all cases,
whether or not caused by or arising, in whole or in part, out of the
comparative, contributory or sole negligence of the Indemnitee; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) 
result from the gross negligence or willful misconduct of such Indemnitee or (y) result
from a claim brought by the Borrower or any other Loan Party against an
Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder
or under any other Loan Document, if the Borrower or such Loan Party has
obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction.

(c)           Reimbursement by Lenders. To
the extent that the Borrower for any reason fails to indefeasibly pay any
amount required under subsection (a) or (b) of this Section to
be paid by it to the Administrative Agent (or any sub-agent thereof), or any
Related Party of any of the foregoing, each Lender severally agrees to pay to the
Administrative Agent (or any such sub-agent), or such Related Party, as the
case may be, such Lender’s Applicable Percentage (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) of
such unpaid amount, provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may
be, was incurred by or asserted against the Administrative Agent (or any such
sub-agent) or in its capacity as such, or against any Related Party of any of
the foregoing acting for the Administrative Agent (or any such sub-agent) or in
connection with such capacity. The obligations of the Lenders under this
subsection (c) are subject to the provisions of Section 2.08(c).

(d)           Waiver of Consequential Damages,
Etc. To the fullest extent permitted by applicable law, the Borrower shall
not assert, and hereby waives, any claim against any Indemnitee, on any theory
of liability, for special, indirect, consequential or punitive damages (as
opposed to direct or actual damages) arising out of, in connection with, or as
a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or
thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred to
in subsection (b) above shall be liable for any damages arising from the
use by unintended recipients of any information or other materials distributed
to such unintended recipients by such Indemnitee through telecommunications,
electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby
or thereby other than for direct or actual damages resulting from the gross
negligence or willful misconduct of such Indemnitee as determined by a final
and nonappealable judgment of a court of competent jurisdiction.

(e)           Payments. All amounts due
under this Section shall be payable not later than ten Business Days after
demand therefor.

(f)            Survival. The agreements in
this Section shall survive the resignation of the Administrative Agent,
the replacement of any Lender, the termination of the Aggregate Commitments and
the repayment, satisfaction or discharge of all the other Obligations.

 

 47

 

 

10.05.     Payments Set Aside. To the extent that any payment by
or on behalf of the Borrower is made to the Administrative Agent or any Lender,
or the Administrative Agent or any Lender exercises its right of setoff, and
such payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent
or such Lender in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in
full force and effect as if such payment had not been made or such setoff had
not occurred, and (b) each Lender severally agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of
any amount so recovered from or repaid by the Administrative Agent, plus
interest thereon from the date of such demand to the date such payment is made
at a rate per annum equal to its cost of funds. The obligations of the Lenders
under clause (b) of the preceding sentence shall survive the payment in
full of the Obligations and the termination of this Agreement.

10.06.     Successors and Assigns. (a)  Successors
and Assigns Generally. The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that the Borrower may not
assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of the Administrative Agent and each Lender and no
Lender may assign or otherwise transfer any of its rights or obligations
hereunder except (i) to an assignee in accordance with the provisions of Section 10.06(b),
(ii) by way of participation in accordance with the provisions of Section 10.06(d),
or (iii) by way of pledge or assignment of a security interest subject to
the restrictions of Section 10.06(f) (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of
this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

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

(i)            Minimum Amounts.

(A)          in the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an Affiliate
of a Lender or an Approved Fund, no minimum amount need be assigned; and

(B)           in any case not described in
subsection (b)(i)(A) of this Section, the aggregate amount of the
Commitment (which for this purpose includes Loans outstanding thereunder) or,
if the Commitment is not then in effect, the principal outstanding balance of
the Loans of the assigning Lender subject to each such 

 48
 

 

assignment, determined as
of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than
$10,000,000, unless each of the Administrative Agent and, so long as no Event
of Default has occurred and is continuing, the Borrower otherwise consents
(each such consent not to be unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met;

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

(A)          the consent of the Borrower (such
consent not to be unreasonably withheld or delayed) shall be required unless (1) an
Event of Default has occurred and is continuing at the time of such assignment
or (2) such assignment is to a Lender, an Affiliate of a Lender or an
Approved Fund; and

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

(iii)          Assignment and Assumption. The
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee in the amount, if any, required as set forth in Schedule 10.06; provided,
however, that the Administrative Agent may, in its sole discretion,
elect to waive such processing and recordation fee in the case of any
assignment. The assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

(iv)          No Assignment to Borrower. No
such assignment shall be made to the Guarantor or any of the Guarantor’s
Affiliates or Subsidiaries.

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

Subject to acceptance and recording thereof by the
Administrative Agent pursuant to subsection (c) of this Section, from
and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under 

 49
 

 

this Agreement, such Lender shall cease to be a party
hereto but shall continue to be entitled to the benefits of Sections 3.01,
3.04, 3.05 and 10.04 with respect to facts and
circumstances occurring prior to the effective date of such assignment). Upon
request, the Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender. Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this subsection
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section 10.06(d).

(c)           Register. The Administrative
Agent, acting solely for this purpose as an agent of the Borrower, shall
maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amounts of the
Loans owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive, and the
Borrower, the Administrative Agent and the Lenders may treat each Person whose
name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and
any Lender, at any reasonable time and from time to time upon reasonable prior
notice.

(d)           Participations. Any Lender may
at any time, without the consent of, or notice to, the Borrower or the
Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries)
(each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its
Commitment and/or the Loans owing to it); provided that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative
Agent and the Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in
the first proviso to Section 10.01 that affects such Participant. Subject
to subsection (e) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 3.01, 3.04
and 3.05 to the same
extent as if it were a Lender and had acquired its interest by assignment
pursuant to Section 10.06(b). To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.09 as though it
were a Lender.

(e)           Limitations upon Participant
Rights. A Participant shall not be entitled to receive any greater payment
under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower’s prior written
consent. A Participant that would be a Foreign Lender if it were a Lender shall
not be entitled to the benefits 

 50
 

 

of Section 3.01 unless the Borrower is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 3.01(e) as though it were a Lender.

(f)            Certain Pledges. Any Lender
may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement (including under its Note, if any) to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

(g)           Electronic Execution of
Assignments. The words “execution,” “signed,” “signature,” and words of
like import in any Assignment and Assumption shall be deemed to include electronic
signatures or the keeping of records in electronic form, each of which shall be
of the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

10.07.     Treatment of Certain Information; Confidentiality. Without
prejudice to the rights of the Administrative Agent or any Lender to disclose
information relating to any Loan Party or any Subsidiary thereof whether under
the common law or the Banking Act, Chapter 19 of Singapore (as amended or
re-enacted from time to time, the “Banking Act”) or otherwise, the Borrower
consents to the Administrative Agent or any Lender, its officers (as defined in
the Banking Act) and agents and all persons to whom Section 47 of the
Banking Act applies, disclosing any information relating to any Loan Party or
any Subsidiary thereof and this Agreement or any Loan Document as the
Administrative Agent or that Lender shall consider appropriate for any such
purposes as it thinks fit, and any other information relating to any Loan Party
or any Subsidiary thereof and the account relationship (including deposit
accounts) and/or dealing relationship of that Loan Party or any Subsidiary
thereof with the Administrative Agent or any Lender, including but not limited
to details of the Loans, this Agreement or any Loan Document, any security
taken, transactions undertaken and balances and positions with the
Administrative Agent or any Lender to:

(a)           any of the agents,
contractors or third party service providers or professional advisers, of the
Administrative Agent or that Lender whether in Singapore or outside Singapore;

(b)           the head office,
branches, representative offices, Subsidiaries, related corporations or
Affiliates, of the Administrative Agent or that Lender in Singapore or any
other jurisdiction (collectively the “Related Parties” and each a “Related
Party”) for any database or data processing purposes, notwithstanding that a
Related Party’s principal place of business may be outside of Singapore or the
information of that Loan Party or any Subsidiary thereof following disclosure
may be collected, held, processed or used by any Related Party in whole or in
part outside of Singapore;

 51
 

 

 

(c)           any regulatory,
supervisory or other authority, court of law, tribunal or person, in Singapore,
or any other jurisdiction, where such disclosure is required by law,
regulation, judgment or order of court or order of any tribunal;

(d)           in respect of a
Lender, any actual or potential new lender or other assignee or transferee of
any rights and obligations of that Lender or other participants in any of its
rights and/or obligations under or relating to the Loans, this Agreement or any
other Loan Document and any security therefor on a confidential basis for any
purposes connected with the proposed assignment or transfer;

(e)           any insurer (whether
of the Administrative Agent or that Lender or a Loan Party or Subsidiary
thereof or otherwise) or provider of security (on a confidential basis);

(f)            in respect of the
Administrative Agent, any person who is succeeding (or may potentially succeed)
that Administrative Agent in such capacity on a confidential basis;

(g)           any other Lender or
any Loan Party or any Subsidiary thereof; or

(h)           any Affiliates of
the Administrative Agent or that Lender, any other Lender, the Loan Parties,
any of their Subsidiaries and any other person:

(i)            with
(or through) whom the Administrative Agent or that Lender enters into (or may
potentially enter into) any sub-participation in relation to, or any other
transaction under which payments are to be made by reference to, this Agreement
or the Loan Parties or Subsidiaries thereof on a confidential basis; or

(ii)           who
is a person, or who belongs to a class of persons, specified in the second
column of the Third Schedule to the Banking Act.

10.08.     Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by applicable law, to set
off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender to or for
the credit or the account of the Borrower against
any and all of the obligations of the Borrower now or hereafter existing under
this Agreement or any other Loan Document to such Lender, irrespective of
whether or not such Lender shall have made any demand under this Agreement or
any other Loan Document and although such obligations of the Borrower may be
contingent or unmatured or are owed to a branch or office of such Lender
different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of each Lender under this Section are in addition
to other rights and remedies (including other rights of setoff) that such
Lender may have. Each Lender agrees to notify the Borrower and the
Administrative Agent promptly after any such setoff and application, provided
that the failure to give such notice shall not affect the validity of such
setoff and application.

10.09.     Interest Rate Limitation. Notwithstanding anything to
the contrary contained in any Loan Document, the interest paid or agreed to be
paid under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the “Maximum 

 52
 

 

Rate”). If the Administrative Agent
or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if
it exceeds such unpaid principal, refunded to the Borrower. In determining
whether the interest contracted for, charged, or received by the Administrative
Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Law, (a) characterize any payment that is not
principal as an expense, fee, or premium rather than interest, (b) exclude
voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate,
and spread in equal or unequal parts the total amount of interest throughout
the contemplated term of the Obligations hereunder.

10.10.     Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement
and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall
become effective when it shall have been executed by the Administrative Agent
and when the Administrative Agent shall have received counterparts hereof that,
when taken together, bear the signatures of each of the other parties hereto. Delivery
of an executed counterpart of a signature page of this Agreement by
telecopy shall be effective as delivery of a manually executed counterpart of
this Agreement.

10.11.     Survival of Representations and Warranties. All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default at the time of any Borrowing, and shall continue in full force and
effect as long as any Loan or any other Obligation hereunder shall remain
unpaid or unsatisfied.

10.12.     Severability. If any provision of this Agreement or the
other Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired
thereby and (b) the parties shall endeavor in good faith negotiations to
replace the illegal, invalid or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the illegal,
invalid or unenforceable provisions. The invalidity of a provision in a
particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.

10.13.     Replacement of Lenders. If any Lender requests
compensation under Section 3.04, or if the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 3.01, then the Borrower
may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and
consents required by, Section 10.06), all of its 

 53
 

 

interests, rights and obligations under this Agreement
and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

(a)           the Borrower shall have paid to the
Administrative Agent the assignment fee specified in Section 10.06(b);

(b)           such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder
and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other amounts);

(c)           in the case of any such assignment
resulting from a claim for compensation under Section 3.04 or
payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments
thereafter; and

(d)           such assignment does not conflict
with applicable Laws.

A Lender shall not be required to make any such
assignment or delegation if, prior thereto, as a result of a waiver by such
Lender or otherwise, the circumstances entitling the Borrower to require such
assignment and delegation cease to apply.

10.14.     Governing Law; Jurisdiction; Etc. (a) GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF NEW YORK.

(b)           SUBMISSION TO JURISDICTION. THE
BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY,
TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING
IN NEW YORK CITY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES
HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK
STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH
FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY
SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING
IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION
OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE
BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 54
 

 

 

(c)           WAIVER OF VENUE. THE BORROWER
IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

(d)           SERVICE OF PROCESS. EACH PARTY
HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE
RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW

10.15.     Waiver of Jury Trial. EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

10.16.     No Advisory or Fiduciary Responsibility. In connection
with all aspects of each transaction contemplated hereby, the Borrower
acknowledges and agrees, that: (i) the credit facility provided for
hereunder and any related arranging or other services in connection therewith
(including in connection with any amendment, waiver or other modification
hereof or of any other Loan Document) are an arm’s-length commercial
transaction between the Borrower on the one hand, and the Administrative Agent
and the Arranger, on the other hand, and the Borrower  is capable of evaluating and understanding
and understands and accepts the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents (including any amendment,
waiver or other modification hereof or thereof); (ii) in connection with
the process leading to such transaction, the Administrative Agent and the
Arranger each is and has been acting solely as a principal and is not the
financial advisor, agent or fiduciary, for the Borrower or any of its Affiliates, stockholders, creditors or
employees or any other Person; (iii) neither the Administrative Agent nor
the Arranger has assumed or will assume an advisory, agency or fiduciary
responsibility in favor of the Borrower with respect to any of the transactions
contemplated hereby or the process leading thereto, including with respect to
any amendment, waiver or other modification hereof or of any other Loan
Document (irrespective of whether the 

 55
 

 

Administrative Agent or the Arranger has advised or is
currently advising the Borrower or any of its Affiliates on other matters) and
neither the Administrative Agent nor the Arranger  has any obligation to the Borrower or any of
its Affiliates with respect to the transactions contemplated hereby except
those obligations expressly set forth herein and in the other Loan Documents; (iv) the
Administrative Agent and the Arranger and their respective Affiliates may be
engaged in a broad range of transactions that involve interests that differ
from those of the Borrower and its Affiliates, and neither the Administrative
Agent nor the Arranger  has any obligation
to disclose any of such interests by virtue of any advisory, agency or
fiduciary relationship; and (v) the Administrative Agent and the
Arranger  have not provided and will not
provide any legal, accounting, regulatory or tax advice with respect to any of
the transactions contemplated hereby (including any amendment, waiver or other
modification hereof or of any other Loan Document) and  the Borrower has consulted its own legal,
accounting, regulatory and tax advisors to the extent it has deemed appropriate.
The Borrower hereby waives and releases, to the fullest extent permitted by
law, any claims that it may have against the Administrative Agent and the
Arranger with respect to any breach or alleged breach of agency or fiduciary
duty arising out of or related to this Agreement, the Loan Documents, or the
transactions contemplated hereby or thereby.

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

 56

 

 

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

	
  

  	
   

  	
  INTERNATIONAL RECTIFIER SOUTHEAST

  ASIA PTE. LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael P. McGee

  	
   

  
	
   

  	
   

  	
  Name: Michael P. McGee

  
	
   

  	
   

  	
  Title: Director

  

 

 S-1
 

 

 

	
  

  	
  BANK OF AMERICA, N.A., AS

  ADMINISTRATIVE AGENT AND LENDER

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	
  /s/ Lee Merkle-Raymond

  	
   

  	
   

  
	
   

  	
  Name: Lee Merkle-Raymond

  	
   

  	
   

  	 

	
   

  	
  Title: Managing Director

  	
   

  	
   

  	 

							

 

 S-2

 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

	
  Lender

  	
   

  	
   

  	
   

  	
  Commitment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Applicable Percentage

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $81,000,000

  	
   

  	
   

  	
   

  	
  100.000000000%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $81,000,000

  	
   

  	
   

  	
   

  	
  100.000000000%

  

 

 

 

SCHEDULE 5.08

EXISTING LIENS

Pursuant to the Revolving Credit Agreement, in order
to secure its guarantee of certain of the obligations under the Revolving
Credit Agreement, the Borrower has granted to the administrative agent under
the Revolving Credit Agreement a lien upon its interests in the preferred stock
of International Rectifier (Great Britain) Limited.

Also pursuant to the Revolving Credit Agreement, a
lien has been granted by the Guarantor to the administrative agent under the
Revolving Credit Agreement upon the shares held by the Guarantor in the
Borrower.

 

 

SCHEDULE 5.12

SUBSIDIARIES AND OTHER EQUITY INVESTMENTS;

LOAN PARTIES

Part (a)

The Borrower owns 15,600,000 redeemable preference
shares of £1.00 each in the capital of International Rectifier (Great Britain)
Limited.

The shares of the stock of the Borrower are subject to
a lien in favor of the administrative agent under the Revolving Credit
Agreement as described in Schedule 5.08.

Part (b)

The following constitute the Loan Parties:

	
  “Borrower”

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  International Rectifier Southeast

  
	
   

  	
   

  	
   

  	
   

  	
  Asia PTE. LTD.

  
	
  :

  	
   

  	
  Jurisdiction of formation

  	
   

  	
  Republic of Singapore

  
	
   

  	
   

  	
  Address of Principal Place of Business:

  	
   

  	
  1 Kim Seng Promenade #13-11,

  
	
   

  	
   

  	
   

  	
   

  	
  Great World City West Tower

  
	
   

  	
   

  	
   

  	
   

  	
  Singapore 237994

  
	
   

  	
   

  	
  Organizational Identification Number:

  	
   

  	
  198801980R

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  “Guarantor”

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
  International Rectifier Corporation

  
	
   

  	
   

  	
  Jurisdiction of formation:

  	
   

  	
  Delaware

  
	
   

  	
   

  	
  Address of Principal Place of Business:

  	
   

  	
  233 Kansas Street, El Segundo, CA

  
	
   

  	
   

  	
   

  	
   

  	
  90245

  
	
   

  	
   

  	
  Organizational Identification Number:

  	
   

  	
  95-1528961

  

 

 

 

 

SCHEDULE 7.02

EXISTING INDEBTEDNESS

None

 

 

SCHEDULE 7.08

CERTAIN CONTRACTUAL OBLIGATIONS

None

 

 

SCHEDULE 10.02

ADMINISTRATIVE
AGENT’S OFFICE,

CERTAIN ADDRESSES FOR NOTICES

INTERNATIONAL RECTIFIER SOUTHEAST ASIA PTE. LTD.:

50 Kallang Avenue
#08-01/03

Noel Corporate
Building

Singapore 339505

Attention:              Jeanne
Chong - Controller, Asia Operations

Telephone:            +65 6295 9548

Telecopier:            +65 6733
7995

Electronic Mail:  jchong2@irf.com

Singapore Registration
Number:  198801980R

ADMINISTRATIVE AGENT:

Administrative
Agent’s Office  

(for payments and Requests for Credit Extensions):

Bank of America,
Singapore

Street Address:    9 Raffles
Place, #18-00

Republic Plaza, Tower 1

Singapore 048619

Attention:  Ms. Tan
Cheng-Bee

Telephone:  65 6239 3119

Telecopier:  65 6239 3035

Electronic Mail: cheng-bee.tan@bankofamerica.com

Account No.:        Bank of America, New York

For credit to Bank of
America, Singapore

A/C no:  97492 Chip UID 046346

Quoting Ref:  ________________

Other Notices as Administrative
Agent:

Bank of America,
Singapore 

Street Address:     9 Raffles Place, #18-00

Republic Plaza, Tower 1

Singapore 048619

Attention:  Dedicated Client
Services Team

Telephone:  65 6239 3000

Telecopier:  65 6239 3266

Electronic Mail:
asia.sse-sg@bankofamerica.com

 

 

SCHEDULE 10.06

PROCESSING
AND RECORDATION FEES

The
Administrative Agent will charge a processing and recordation fee (an “Assignment
Fee”) in the amount of $2,500 for each assignment; provided, however,
that in the event of two or more concurrent assignments to members of the same
Assignee Group (which may be effected by a suballocation of an assigned amount
among members of such Assignee Group) or two or more concurrent assignments by
members of the same Assignee Group to a single Eligible Assignee (or to an
Eligible Assignee and members of its Assignee Group), the Assignment Fee will
be $2,500 plus the amount set forth below:

	
  

  	
  Transaction

  	
   

  	
   

  	
  

  	
  Assignment Fee

  	
   

  
	
   

  	
   

  	
   

  
	
  First four concurrent
  assignments or suballocations to members of an Assignee Group (or from
  members of an Assignee Group, as applicable)

  	
   

  	
  -0-

  
	
   

  	
   

  	
   

  
	
  Each additional concurrent assignment or suballocation
  to a member of such Assignee Group (or from a member of such Assignee Group,
  as applicable)

  	
   

  	
  $500

  

 

 

 

 

EXHIBIT A

FORM OF COMMITTED LOAN NOTICE

Date:  ___________, _____

To:   Bank of America, N.A., as Administrative
Agent

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement,
dated as of June 27, 2006 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Agreement;” the
terms defined therein being used herein as therein defined), among International
Rectifier Southeast Asia Pte. Ltd., a Singapore limited liability
company (the “Borrower”), the Lenders from time to time party
thereto, and Bank of America, N.A., as Administrative Agent.

The undersigned hereby requests (select one):

____ A Borrowing of Loans

____ A conversion or continuation of Loans

1.   On                                                                                   (a
Business Day).

2.   In the amount of $

3.   Comprised of                                                                                                 
                                                                                [Type
of Loan requested]

4.   For Eurodollar Rate Loans:  with an Interest Period of           months.

	
  

  	
  INTERNATIONAL
  RECTIFIER SOUTHEAST

  ASIA PTE. LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

 

EXHIBIT B

FORM OF TERM NOTE

            ,
2006

FOR VALUE RECEIVED, the undersigned (the “Borrower”),
hereby promises to pay to                                         
or registered assigns (the “Lender”), in accordance with the provisions
of the Agreement (as hereinafter defined), the principal amount of the Loan
from time to time made by the Lender to the Borrower under that certain Credit
Agreement, dated as of [_________, _____] (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;”
the terms defined therein being used herein as therein defined), among the
Borrower, the Lenders from time to time party thereto, and Bank of America,
N.A., as Administrative Agent.

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

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

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

THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

	
  

  	
  INTERNATIONAL
  RECTIFIER SOUTHEAST

  ASIA PTE. LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

 

LOANS AND PAYMENTS
WITH RESPECT THERETO

	
  Date

  	
   

  	
  Amount of

  Loan Made

  	
   

  	
  End of

  Interest

  Period

  	
   

  	
  Amount of

  Principal or

  Interest Paid

  This Date

  	
   

  	
  Outstanding

  Principal

  Balance This

  Date

  	
   

  	
  Notation

  Made By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

Financial
Statement Date:           ,       

To:   Bank of
America, N.A., as Administrative Agent

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement,
dated as of June 27, 2006 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Agreement;” the
terms defined therein being used herein as therein defined), among
International Rectifier Southeast Asia Pte. Ltd. (the “Borrower”), the
Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent.

The undersigned Responsible Officer(1) hereby
certifies as of the date hereof that he/she is the                                   
of the Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

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

Attached hereto as Schedule 1 are the year-end
audited financial statements required by Section 6.01(a) of
the Agreement for the fiscal year of the Borrower ended as of the above date,
together with the report and opinion of an independent certified public
accountant required by such section. Attached hereto as Schedule 2 is a
listing of Indebtedness of the Borrower to the extent not reflected on the
financial statements attached in Schedule 1.

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

Attached hereto as Schedule 1 are the unaudited
financial statements required by Section 6.01(b) of the
Agreement for the fiscal quarter of the Borrower ended as of the above date.

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

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

[select one:]

1.   This certificates should be from the chief
executive officer or treasurer of the Borrower.

 

[to the best knowledge of the undersigned during such
fiscal period, the Borrower performed and observed each covenant and condition
of the Loan Documents applicable to it, and no Default has occurred and is
continuing.]

—or—

[the following covenants or conditions have not been
performed or observed and the following is a list of each such Default and its
nature and status:]

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

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

	
  

  	
  INTERNATIONAL RECTIFIER SOUTHEAST

  ASIA PTE. LTD.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

 

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

 

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

I.   Section 7.09 (a) — Minimum EBITDA.

	
  A.

  	
   

  	
   

  	
   

  	
  Consolidated EBITDA for Measurement Period ending on
  above date (“Subject Period”):

  	
   

  	
  $______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
   

  	
  Consolidated Net Income for Subject Period:

  	
   

  	
  $______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.

  	
   

  	
  Consolidated Interest Charges for Subject Period:

  	
   

  	
  $______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.

  	
   

  	
  Provision for income taxes for Subject Period:

  	
   

  	
  $______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.

  	
   

  	
  Depreciation expenses for Subject Period:

  	
   

  	
  $______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5.

  	
   

  	
  Amortization expenses for Subject Period:

  	
   

  	
  $______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6.

  	
   

  	
  Other non-cash charges (in the Subject Period or any
  other) reducing Consolidated Net Income

  	
   

  	
  $______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7.

  	
   

  	
  Income Tax credits for Subject Period:

  	
   

  	
  $______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  8.

  	
   

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

  	
   

  	
  $______

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Minimum required: $75,000,000 for last 4 fiscal
  quarters, or $10,000,000 for any single fiscal quarter

  	
   

  	
   

  

 

 

EXHIBIT D

ASSIGNMENT
AND ASSUMPTION

This Assignment and Assumption (this “Assignment
and Assumption”) is dated as of the Effective Date set forth below and is
entered into by and between [the][each](2) Assignor identified in item 1 below
([the][each, an] “Assignor”) and [the][each](3) Assignee identified in
item 2 below ([the][each, an] “Assignee”). [It is understood and agreed
that the rights and obligations of [the Assignors][the Assignees](4) hereunder
are several and not joint.](5) 
Capitalized terms used but not defined herein shall have the meanings
given to them in the Credit Agreement identified below (the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a
part of this Assignment and Assumption as if set forth herein in full.

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

1.             Assignor[s]:          ______________________________

(2)             For bracketed
language here and elsewhere in this form relating to the Assignor(s), if the
assignment is from a single Assignor, choose the first bracketed language.  If the assignment is from multiple Assignors,
choose the second bracketed language.

(3)             For
bracketed language here and elsewhere in this form relating to the Assignee(s),
if the assignment is to a single Assignee, choose the first bracketed
language.  If the assignment is to
multiple Assignees, choose the second bracketed language.

(4)             Select
as appropriate.

(5)             Include bracketed
language if there are either multiple Assignors or multiple Assignees.

 

 

  ______________________________

2.             Assignee[s]:         ______________________________

  ______________________________

[for each Assignee, indicate [Affiliate][Approved
Fund] of [identify Lender]]

3.             Borrower(s):          ______________________________

4.             Administrative
Agent: Bank of America, N.A, as the administrative agent under the Credit
Agreement.

5.             Credit
Agreement: Credit Agreement, dated as of June 27, 2006, among
International Rectifier Southeast Asia Pte. Ltd, the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent.

6.             Assigned
Interest:

	
  Assignor[s](6)

  	
   

  	
  Assignee[s](7)

  	
   

  	
  Aggregate

  Amount of

  Commitment/Loans

  for all Lenders(8)

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned

  	
   

  	
  Percentage

  Assigned of

  Commitment/

  Loans(9)

  	
   

  	
  CUSIP

  Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $________________

  	
   

  	
  $_________

  	
   

  	
  ____________%

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $________________

  	
   

  	
  $_________

  	
   

  	
  ____________%

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $________________

  	
   

  	
  $_________

  	
   

  	
  ____________%

  	
   

  	
   

  

 

[7.            Trade
Date:           __________________](10)

Effective Date: 
__________________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND
WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

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

ASSIGNOR

[NAME OF ASSIGNOR]

By: 
_____________________________

(6)             List each Assignor,
as appropriate.

(7)             List each Assignee,
as appropriate.

(8)             Amounts
in this column and in the column immediately to the right to be adjusted by the
counterparties to take into account any payments or prepayments made between
the Trade Date and the Effective Date.

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

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

 

 

 

Title:

ASSIGNEE

[NAME OF ASSIGNEE]

By:  _____________________________

Title:

Consented to and
Accepted:

BANK OF AMERICA, N.A., as

Administrative Agent

By:      _________________________________
            Title:

[Consented to:]

By:      _________________________________
            Title:

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

[___________________](11)

STANDARD
TERMS AND CONDITIONS FOR

ASSIGNMENT
AND ASSUMPTION

1.             Representations
and Warranties.

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

1.2.          Assignee.
[The][Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and Assumption and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it meets
all the requirements to be an assignee under Section 10.06(b)(iii), (v) and
(vi) of the Credit Agreement (subject to such consents, if any, as may be
required under Section 10.06(b)(iii) of the Credit Agreement), (iii) from
and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of [the][the relevant]
Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it
is sophisticated with respect to decisions to acquire assets of the type
represented by [the][such] Assigned Interest and either it, or the Person
exercising discretion in making its decision to acquire [the][such] Assigned
Interest, is experienced in acquiring assets of such type, (v) it has
received a copy of the Credit Agreement, and has received or has been accorded
the opportunity to receive copies of the most recent financial statements
delivered pursuant to Section __ thereof, as applicable, and such other
documents and information as it deems appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase [the][such] Assigned Interest, (vi) it has, independently and
without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Assignment and Assumption and
to purchase [the][such] Assigned Interest, and (vii) if it is a Foreign
Lender, attached hereto is any documentation required to be delivered by it
pursuant to the terms of the Credit Agreement, duly completed and executed by
[the][such] Assignee; and (b) agrees that (i) it will, independently
and without reliance upon the Administrative Agent, 

(11)       Describe
Credit Agreement at option of Administrative Agent.

 

 

 

[the][any] Assignor or any other Lender, and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Loan Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

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

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

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