Document:

Exhibit 4.3

 

Execution
Copy

 

$275,000,000

 

Sensus
Metering Systems Inc.

 

85/8% Senior
Subordinated Notes Due 2013

 

 

REGISTRATION RIGHTS AGREEMENT

 

December 17, 2003

 

Credit Suisse First Boston LLC

Eleven Madison Avenue

New York, New York 10010-3629

 

Goldman, Sachs & Co.

85 Broad Street

New York, New York 10004

 

Dear Sirs:

 

Sensus
Metering Systems Inc., a Delaware corporation (the “Issuer”), proposes to issue
and sell to Credit Suisse First Boston LLC and Goldman, Sachs & Co. (the “Initial
Purchasers”), upon the terms set forth in a purchase agreement dated
as of December 11, 2003 (the “Purchase Agreement”), $275,000,000
aggregate principal amount of its 85/8% Senior
Subordinated Notes Due 2013 (the “Notes”) guaranteed on a subordinated basis
(the “Parent
Guaranty”) by Sensus Metering Systems (Bermuda 2) Ltd., a
company organized under the laws of Bermuda (the “Parent Guarantor”).  The Notes are also guaranteed (the “Subsidiary
Guaranties”) by each of its subsidiaries listed on Schedule I
hereto (the “Subsidiary Guarantors”). The Notes will be issued pursuant to
an Indenture, dated as of December 17, 2003 (the “Indenture”), among the
Issuer, the Parent Guarantor, the Subsidiary Guarantors and U.S. Bank National
Association, as trustee (the “Trustee”). 
Unless the context otherwise indicates or requires, as used herein, the
“Company”
refers to the Issuer, the Parent Guarantor and the Subsidiary Guarantors.  Unless the context otherwise indicates or
requires, the “Initial Securities” refers to the Notes, the Parent Guaranty
and the Subsidiary Guaranties. 
References herein to obligations of the Company relating to the
Securities shall be construed to refer to the separate obligations of:  (i) the Issuer to issue the Notes;
(ii) the Parent Guarantor to provide the Parent Guaranty; and
(iii) the Subsidiary Guarantors to provide the Subsidiary Guaranties.

 

As an
inducement to the Initial Purchasers to enter into the Purchase Agreement, the
Company agrees with the Initial Purchasers, for the benefit of the holders of
the Initial

 

 

Securities (including, without
limitation, the Initial Purchasers), the Exchange Securities (as defined below)
and the Private Exchange Securities (as defined below) (collectively, the “Holders”),
and the Market-Makers (as defined below), as follows:

 

1.  Registered Exchange Offer. 
Unless not permitted by applicable law (after the Company has complied
with the ultimate paragraph of this Section 1), the Company shall prepare
and, not later than 90 days (such 90th day being an “Exchange Offer Filing Deadline”) after the
date the Initial Purchasers purchase the Initial Securities pursuant to the
Purchase Agreement (the “Closing Date”),
file with the Securities and Exchange Commission (the “Commission”) a registration statement (the
“Exchange  Offer Registration  Statement”) on an appropriate form under
the United States Securities Act of 1933, as amended (the “Securities Act”), with respect to a
proposed offer (the “Registered Exchange
Offer”) to the Holders of Transfer Restricted Securities (as defined
in Section 7 hereof), who are not prohibited by any law or policy of the
Commission from participating in the Registered Exchange Offer, to issue and
deliver to such Holders, in exchange for the Initial Securities, a like
aggregate principal amount of debt securities of the Company issued under the
Indenture, identical in all material respects to the Initial Securities and
registered under the Securities Act (the “Exchange
Securities”).  The Company
shall use its reasonable best efforts to (i) cause such Exchange Offer
Registration Statement to become effective under the Securities Act within
210 days after the Closing Date (such 210th day being an “Effectiveness Deadline”)  and (ii)  keep the Exchange Offer
Registration Statement effective for not less than 30 days (or longer, if
required by applicable law) after the date notice of the Registered Exchange
Offer is mailed to the Holders (such period being called the “Exchange Offer  Registration Period”).

 

If the Company
commences the Registered Exchange Offer, the Company (i) will be entitled
to consummate the Registered Exchange Offer 30 days after such
commencement (provided that the Company has accepted all the Initial Securities
theretofore validly tendered in accordance with the terms of the Registered
Exchange Offer) and (ii) will be required to consummate the Registered
Exchange Offer no later than 40 days after the date on which the Exchange Offer
Registration Statement is declared effective (such 40th day being the “Consummation Deadline”).

 

Following the
declaration of the effectiveness of the Exchange Offer Registration Statement,
the Company shall promptly commence the Registered Exchange Offer, it being the
objective of such Registered Exchange Offer to enable each Holder of Transfer
Restricted Securities electing to exchange the Initial Securities for Exchange
Securities (assuming that such Holder is not an affiliate of the Company within
the meaning of the Securities Act, acquires the Exchange Securities in the
ordinary course of such Holder’s business and has no arrangements with any
person to participate in the distribution of the Exchange Securities and is not
prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer) to trade such Exchange Securities from and after
their receipt without any limitations or restrictions under the Securities Act
and without material restrictions under the securities laws of the several
states of the United States.

 

2

 

The Company
acknowledges that, pursuant to current interpretations by the Commission’s
staff of Section 5 of the Securities Act, in the absence of an applicable
exemption therefrom, (i) each Holder which is a broker-dealer electing to
exchange Initial Securities, acquired for its own account as a result of market
making activities or other trading activities, for Exchange Securities (an “Exchanging Dealer”), is required to deliver
a prospectus containing the information set forth in (a) Annex A hereto on the
cover, (b) Annex B hereto in the “Exchange Offer Procedures” section and the
“Purpose of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of
Distribution” section of such prospectus in connection with a sale of any such
Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer and (ii) an Initial Purchaser that elects to sell
Securities (as defined below) acquired in exchange for Initial Securities
constituting any portion of an unsold allotment, is required to deliver a
prospectus containing the information required by Items 507 or 508 of
Regulation S-K under the Securities Act, as applicable, in connection
with such sale.

 

The Company
shall use its reasonable best efforts to keep the Exchange Offer Registration
Statement effective and to amend and supplement the prospectus contained
therein, in order to permit such prospectus to be lawfully delivered by all
persons subject to the prospectus delivery requirements of the Securities Act
for such period of time as such persons must comply with such requirements in
order to resell the Exchange Securities; provided, however, that
(i) in the case where such prospectus and any amendment or supplement thereto
must be delivered by an Exchanging Dealer or an Initial Purchaser, such period
shall be the lesser of 180 days and the date on which all Exchanging
Dealers and the Initial Purchasers have sold all Exchange Securities held by
them (unless such period is extended pursuant to Section 3(j) below) and
(ii) the Company shall make such prospectus and any amendment or supplement
thereto available to any broker-dealer for use in connection with any
resale of any Exchange Securities for a period of not less than 180 days
after the consummation of the Registered Exchange Offer.

 

If, upon
consummation of the Registered Exchange Offer, any Initial Purchaser holds
Initial Securities acquired by it as part of its initial distribution, the
Company, simultaneously with the delivery of the Exchange Securities pursuant
to the Registered Exchange Offer, shall issue and deliver to such Initial
Purchaser upon the written request of such Initial Purchaser, in exchange (the
“Private Exchange”) for the
Initial Securities held by such Initial Purchaser, a like principal amount of
debt securities of the Company issued under the Indenture and identical in all
material respects to the Initial Securities (the “Private  Exchange Securities”).  The Initial Securities, the Exchange
Securities and the Private Exchange Securities are herein collectively called
the “Securities”.

 

In connection
with the Registered Exchange Offer, the Company shall:

 

(a)  mail to each Holder a copy of the
prospectus forming part of the Exchange Offer Registration Statement, together
with an appropriate letter of transmittal and related documents;

 

3

 

(b)  keep the Registered Exchange Offer
open for not less than 30 days (or longer, if required by applicable law)
after the date notice thereof is mailed to the Holders;

 

(c)  utilize the services of a depositary
for the Registered Exchange Offer with an address in the Borough of Manhattan,
The City of New York, which may be the Trustee or an affiliate of the Trustee;

 

(d)  permit Holders to withdraw tendered
Securities at any time prior to the close of business, New York time, on the
last business day on which the Registered Exchange Offer shall remain
open; and

 

(e)  otherwise comply with all applicable
laws.

 

As soon as
practicable after the close of the Registered Exchange Offer or the Private
Exchange, as the case may be, the Company shall:

 

(x) 
accept for exchange all the Securities validly tendered and not
withdrawn pursuant to the Registered Exchange Offer and the Private Exchange;

 

(y) 
deliver to the Trustee for cancellation all the Initial Securities so
accepted for exchange; and

 

(z) 
cause the Trustee to authenticate and deliver promptly to each Holder of
the Initial Securities, Exchange Securities or Private Exchange Securities, as
the case may be, equal in principal amount to the Initial Securities of such
Holder so accepted for exchange.

 

The Indenture
will provide that the Exchange Securities will not be subject to the transfer
restrictions set forth in the Indenture and that all the Securities will vote
and consent together on all matters as one class and that none of the
Securities will have the right to vote or consent as a class separate from one
another on any matter.

 

Interest on
each Exchange Security and Private Exchange Security issued pursuant to the
Registered Exchange Offer and in the Private Exchange will accrue from the last
interest payment date on which interest was paid on the Initial Securities
surrendered in exchange therefor or, if no interest has been paid on the
Initial Securities, from the date of original issue of the Initial Securities.

 

Each Holder
participating in the Registered Exchange Offer shall be required to represent
to the Company that at the time of the consummation of the Registered Exchange
Offer (i) any Exchange Securities received by such Holder will be acquired
in the ordinary course of business, (ii) such Holder will have no
arrangements or understanding with any person to participate in the
distribution of the Securities or the Exchange Securities within the meaning of
the Securities Act, (iii) such Holder is not an “affiliate,” as defined in
Rule 405 of the Securities Act, of the Company or if it is an affiliate,
such Holder will comply with the registration and prospectus delivery
requirements of the Securities Act to the extent applicable, (iv) if such
Holder is not a

 

4

 

broker-dealer, that it is
not engaged in, and does not intend to engage in, the distribution of the
Exchange Securities and (v) if such Holder is a broker-dealer, that
it will receive Exchange Securities for its own account in exchange for Initial
Securities that were acquired as a result of market-making activities or
other trading activities and that it will be required to acknowledge that it
will deliver a prospectus in connection with any resale of such Exchange
Securities.

 

Notwithstanding
any other provisions hereof, the Company will ensure that (i) any Exchange
Offer Registration Statement and any amendment thereto and any prospectus
forming part thereof and any supplement thereto complies in all material
respects with the Securities Act and the rules and regulations thereunder,
(ii) any Exchange Offer Registration Statement and any amendment thereto
does not, when it becomes effective, contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) any
prospectus forming part of any Exchange Offer Registration Statement, and any supplement
to such prospectus, does not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

 

If following
the date hereof there has been announced a change in Commission policy with
respect to exchange offers that in the reasonable opinion of counsel to the
Company raises a substantial question as to whether the Registered Exchange
Offer is permitted by applicable federal law, the Company will seek a no-action
letter or other favorable decision from the Commission allowing the Company to
consummate the Registered Exchange Offer. 
The Company will pursue the issuance of such a decision to the
Commission staff level.  In connection
with the foregoing, the Company will take all such other actions as may be
requested by the Commission or otherwise required in connection with the
issuance of such decision, including without limitation (i) participating
in telephonic conferences with the Commission, (ii) delivering to the
Commission staff an analysis prepared by counsel to the Company setting forth
the legal bases, if any, upon which such counsel has concluded that the Registered
Exchange Offer should be permitted and (iii) diligently pursuing a
resolution (which need not be favorable) by the Commission staff.

 

2.  Shelf Registration. 
If, (i) because of any change in law or in applicable interpretations
thereof by the staff of the Commission, the Company is not permitted to effect
a Registered Exchange Offer, as contemplated by Section 1 hereof,
(ii) the Registered Exchange Offer is not consummated by the 250th day
after the Closing Date, (iii) any Initial Purchaser so requests with respect
to the Initial Securities (or the Private Exchange Securities) prohibited by
applicable law or policy of the Commission to be exchanged for Exchange
Securities in the Registered Exchange Offer and held by it following
consummation of the Registered Exchange Offer or (iv) any Holder (other
than an Exchanging Dealer) is prohibited by applicable law or policy of the
Commission to participate in the Registered Exchange Offer or, in the case of
any Holder (other than an Exchanging Dealer) that participates in the
Registered Exchange Offer, such Holder does not receive freely tradeable
Exchange Securities on the date of the exchange and any such

 

5

 

Holder so requests, the Company shall take
the following actions (the date on which any of the conditions described in the
foregoing clauses (i) through (iv) occur, including in the case of
clauses (iii) or (iv) the receipt of the required notice, being a “Trigger Date”):

 

(a)  The Company shall, in the case of
clause (i), promptly (but in no event more than 45 days after the Trigger
Date), and in the case of clauses (ii) through (iv), no later than 45 days
after the Trigger Date (such 45th day being a “Shelf Filing Deadline” and, together with the Exchange Offer
Filing Date, the “Filing Date”)
file with the Commission and thereafter use its reasonable best efforts to
cause to be declared effective: in the case of clause (i), no later than 210
days after the Closing Date and, in the case of clauses (ii) through (iv), no
later than 60 days after the Trigger date (such 210th day after the Closing
Date in the case of clause (i), or such 60th day after the Trigger Date in the
case of clauses (ii) through (iv) being an “Effectiveness
Deadline”) a registration statement (the “Shelf Registration  Statement”
and, together with the Exchange Offer Registration Statement, a “Registration  Statement”) on an appropriate form under the Securities Act
relating to the offer and sale of the Transfer Restricted Securities by the
Holders thereof from time to time in accordance with the methods of
distribution set forth in the Shelf Registration Statement and Rule 415
under the Securities Act (hereinafter, the “Shelf
Registration”); provided, however, that no Holder
(other than an Initial Purchaser) shall be entitled to have the Securities held
by it covered by such Shelf Registration Statement unless such Holder agrees in
writing to be bound by all the provisions of this Agreement applicable to such
Holder.

 

(b)  The Company shall use its reasonable
best efforts to keep the Shelf Registration Statement continuously effective in
order to permit the prospectus included therein to be lawfully delivered by the
Holders of the relevant Securities, for a period of two years (or for such
longer period if extended pursuant to Section 3(j) below) from the date of
its effectiveness or such shorter period that will terminate when all the
Securities covered by the Shelf Registration Statement (i) have been sold
pursuant thereto or (ii) are no longer restricted securities (as defined in
Rule 144 under the Securities Act, or any successor
rule thereof).  The Company shall
be deemed not to have used its reasonable best efforts to keep the Shelf
Registration Statement effective during the requisite period if it voluntarily
takes any action that would result in Holders of Securities covered thereby not
being able to offer and sell such Securities during that period, unless such
action is required by applicable law.

 

(c)  Notwithstanding any other provisions
of this Agreement to the contrary, the Company shall cause the Shelf
Registration Statement and the related prospectus and any amendment or
supplement thereto, as of the effective date of the Shelf Registration
Statement, amendment or supplement, (i) to comply in all material respects with
the applicable requirements of the Securities Act and the rules and regulations
of the Commission and (ii) not to contain any untrue statement of a material
fact or omit to state a material fact required to be stated

 

6

 

therein or
necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

3.  Registration Procedures. 
In connection with any Shelf Registration contemplated by Section 2
hereof and, to the extent applicable, any Registered Exchange Offer
contemplated by Section 1 hereof, the following provisions shall apply:

 

(a)  The Company shall (i) furnish to
each Initial Purchaser, prior to the filing thereof with the Commission, a copy
of the Registration Statement and each amendment thereof and each supplement,
if any, to the prospectus included therein and, in the event that an Initial
Purchaser (with respect to any portion of an unsold allotment from the original
offering) is participating in the Registered Exchange Offer or the Shelf
Registration Statement, the Company shall use its reasonable best efforts to
reflect in each such document, when so filed with the Commission, such comments
as such Initial Purchaser reasonably may propose; (ii) include the
information set forth in Annex A hereto on the cover, in Annex B hereto in the
“Exchange Offer Procedures” section and the “Purpose of the Exchange Offer”
section and in Annex C hereto in the “Plan of Distribution” section of the
prospectus forming a part of the Exchange Offer Registration Statement and
include the information set forth in Annex D hereto in the Letter of
Transmittal delivered pursuant to the Registered Exchange Offer; (iii) if
requested by an Initial Purchaser, include the information required by Items
507 or 508 of Regulation S-K under the Securities Act, as applicable, in
the prospectus forming a part of the Exchange Offer Registration Statement;
(iv) include within the prospectus contained in the Exchange Offer
Registration Statement a section entitled “Plan of Distribution,” reasonably
acceptable to the Initial Purchasers, which shall contain a summary statement
of the positions taken or policies made by the staff of the Commission with
respect to the potential “underwriter” status of any broker-dealer that
is the beneficial owner (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of Exchange
Securities received by such broker-dealer in the Registered Exchange
Offer (a “Participating Broker-Dealer”),
whether such positions or policies have been publicly disseminated by the staff
of the Commission or such positions or policies, in the reasonable judgment of
the Initial Purchasers based upon advice of counsel (which may be in-house
counsel), represent the prevailing views of the staff of the Commission; and
(v) in the case of a Shelf Registration Statement, include the names of
the Holders who propose to sell Securities pursuant to the Shelf Registration
Statement as selling security holders.

 

(b)  The Company shall give written notice
to the Initial Purchasers, the Holders of the Securities and any Participating
Broker-Dealer from whom the Company has received prior written notice that it
will be a Participating Broker-Dealer in the Registered Exchange Offer (which
notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an
instruction to suspend the use of the prospectus until the requisite changes
have been made):

 

7

 

(i)  when the Registration Statement or
any amendment thereto has been filed with the Commission and when the
Registration Statement or any post-effective amendment thereto has become
effective;

 

(ii)  of any request by the Commission for
amendments or supplements to the Registration Statement or the prospectus
included therein or for additional information;

 

(iii)  of the issuance by the Commission of
any stop order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose;

 

(iv)  of the receipt by the Company or its
legal counsel of any notification with respect to the suspension of the
qualification of the Securities for sale in any jurisdiction or the initiation
or threatening of any proceeding for such purpose; and

 

(v)  of the happening of any event that
requires the Company to make changes in the Registration Statement or the
prospectus in order that the Registration Statement or the prospectus do not
contain an untrue statement of a material fact nor omit to state a material
fact required to be stated therein or necessary to make the statements therein
(in the case of the prospectus, in light of the circumstances under which they
were made) not misleading.

 

(c)  The Company shall use its reasonable
best efforts to obtain the withdrawal at the earliest possible time, of any
order suspending the effectiveness of the Registration Statement.

 

(d)  The Company shall furnish to each
Holder of Securities included within the coverage of the Shelf Registration,
without charge, at least one copy of the Shelf Registration Statement and any
post-effective amendment thereto, including financial statements and
schedules, and, if the Holder so requests in writing, all exhibits thereto (including
those, if any, incorporated by reference).

 

(e)  The Company shall deliver to each
Exchanging Dealer and each Initial Purchaser, and to any other Holder who so
requests, without charge, at least one copy of the Exchange Offer Registration
Statement and any post-effective amendment thereto, including financial
statements and schedules, and, if any Initial Purchaser or any such Holder
requests, all exhibits thereto (including those incorporated by reference).

 

(f)  The Company shall, during the Shelf Registration
Period, deliver to each Holder of Securities included within the coverage of
the Shelf Registration, without charge, as many copies of the prospectus
(including each preliminary prospectus) included in the Shelf Registration
Statement and any amendment or supplement thereto as such person may reasonably
request.  The Company consents, subject
to the provisions of this Agreement, to the use of the prospectus

 

8

 

or any
amendment or supplement thereto by each of the selling Holders of the
Securities in connection with the offering and sale of the Securities covered
by the prospectus, or any amendment or supplement thereto, included in the
Shelf Registration Statement.

 

(g)  The Company shall deliver to each
Initial Purchaser, any Exchanging Dealer, any Participating Broker-Dealer
and such other persons required to deliver a prospectus following the
Registered Exchange Offer, without charge, as many copies of the final
prospectus included in the Exchange Offer Registration Statement and any
amendment or supplement thereto as such persons may reasonably request.  The Company consents, subject to the
provisions of this Agreement, to the use of the prospectus or any amendment or
supplement thereto by any Initial Purchaser, if necessary, any Participating
Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer in connection with the offering and
sale of the Exchange Securities covered by the prospectus, or any amendment or
supplement thereto, included in such Exchange Offer Registration Statement.

 

(h)  Prior to any public offering of the
Securities pursuant to any Registration Statement the Company shall register or
qualify or cooperate with the Holders of the Securities included therein and
their respective counsel in connection with the registration or qualification
of the Securities for offer and sale under the securities or “blue sky” laws of
such states of the United States as any Holder of the Securities reasonably
requests in writing and do any and all other acts or things necessary or
advisable to enable the offer and sale in such jurisdictions of the Securities
covered by such Registration Statement; provided, however, that
the Company shall not be required to (i) qualify generally to do business
in any jurisdiction where it is not then so qualified or (ii) take any
action which would subject it to general service of process or to taxation in
any jurisdiction where it is not then so subject.

 

(i)  The Company shall cooperate with the
Holders of the Securities to facilitate the timely preparation and delivery of
certificates representing the Securities to be sold pursuant to any
Registration Statement free of any restrictive legends and in such denominations
and registered in such names as the Holders may request a reasonable period of
time prior to sales of the Securities pursuant to such Registration Statement.

 

(j)  Upon the occurrence of any event
contemplated by paragraphs (ii) through (v) of Section 3(b) above
during the period for which the Company is required to maintain an effective
Registration Statement, the Company shall promptly prepare and file a post-effective
amendment to the Registration Statement or a supplement to the related prospectus
and any other required document so that, as thereafter delivered to Holders of
the Securities or purchasers of Securities, the prospectus will not contain an
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under

 

9

 

which they
were made, not misleading.  If the
Company notifies the Initial Purchasers, the Holders of the Securities and any
known Participating Broker-Dealer in accordance with paragraphs
(ii) through (v) of Section 3(b) above to suspend the use of the
prospectus until the requisite changes to the prospectus have been made, then
the Initial Purchasers, the Holders of the Securities and any such
Participating Broker-Dealers shall suspend use of such prospectus, and
the period of effectiveness of the Shelf Registration Statement provided for in
Section 2(b) above and the Exchange Offer Registration Statement provided
for in Section 1 above shall each be extended by the number of days
from and including the date of the giving of such notice to and including the
date when the Initial Purchasers, the Holders of the Securities and any known
Participating Broker-Dealer shall have received such amended or
supplemented prospectus pursuant to this Section 3(j).

 

(k)  Not later than the effective date of
the applicable Registration Statement, the Company will provide a CUSIP number
for the Initial Securities, the Exchange Securities or the Private Exchange
Securities, as the case may be, and provide the applicable trustee with printed
certificates for the Initial Securities, the Exchange Securities or the Private
Exchange Securities, as the case may be, in a form eligible for deposit with
The Depository Trust Company.

 

(l)  The Company will comply with all
rules and regulations of the Commission to the extent and so long as they are
applicable to the Registered Exchange Offer or the Shelf Registration and will
make generally available to its security holders (or otherwise provide in
accordance with Section 11(a) of the Securities Act) an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act, no later
than 45 days after the end of a 12-month period (or 90 days, if
such period is a fiscal year) beginning with the first month of the Company’s
first fiscal quarter commencing after the effective date of the Registration
Statement, which statement shall cover such 12-month period.

 

(m)  The Company shall cause the Indenture
to be qualified under the United States Trust Indenture Act of 1939, as
amended, in a timely manner and containing such changes, if any, as shall be
necessary for such qualification.  In
the event that such qualification would require the appointment of a new
trustee under the Indenture, the Company shall appoint a new trustee thereunder
pursuant to the applicable provisions of the Indenture.

 

(n)  The Company may require each Holder
of Securities to be sold pursuant to the Shelf Registration Statement to
furnish to the Company such information regarding the Holder and the
distribution of the Securities as the Company may from time to time reasonably
require for inclusion in the Shelf Registration Statement, and the Company may
exclude from such registration the Securities of any Holder that unreasonably
fails to furnish such information within a reasonable time after receiving such
request.

 

10

 

(o)  The Company shall enter into such
customary agreements (including, if requested, an underwriting agreement in
customary form) and take all such other action, if any, as any Holder of the
Securities shall reasonably request in order to facilitate the disposition of
the Securities pursuant to any Shelf Registration.

 

(p)  In the case of any Shelf
Registration, the Company shall (i) make reasonably available for
inspection by the Holders of the Securities, any underwriter participating in
any disposition pursuant to the Shelf Registration Statement and any attorney,
accountant or other agent retained by the Holders of the Securities or any such
underwriter all relevant financial and other records, pertinent corporate
documents and properties of the Company and (ii) cause the Company’s
officers, directors, employees, accountants and auditors to supply all relevant
information reasonably requested by the Holders of the Securities or any such
underwriter, attorney, accountant or agent in connection with the Shelf
Registration Statement, in each case, as shall be reasonably necessary to
enable such persons, to conduct a reasonable investigation within the meaning
of Section 11 of the Securities Act; provided, however, that
the foregoing inspection and information gathering shall be coordinated on
behalf of the Initial Purchasers by you and on behalf of the other parties, by
one counsel designated by and on behalf of such other parties as described in
Section 5 hereof.

 

(q)  In the case of any Shelf
Registration, the Company, if requested by any Holder of Securities covered
thereby, shall cause (i) its counsel to deliver an opinion and updates
thereof relating to the Securities in customary form addressed to such Holders
and the managing underwriters, if any, thereof and dated, in the case of the
initial opinion, the effective date of such Shelf Registration Statement (it
being agreed that the matters to be covered by such opinion shall include,
without limitation, the due incorporation and good standing of the Company and
its subsidiaries; the qualification of the Company and its subsidiaries to
transact business as foreign corporations; the due authorization, execution and
delivery of the relevant agreement of the type referred to in Section 3(o)
hereof; the due authorization, execution, authentication and issuance, and the
validity and enforceability, of the applicable Securities; the absence of
material legal or governmental proceedings involving the Company and its
subsidiaries; the absence of governmental approvals required to be obtained in
connection with the Shelf Registration Statement, the offering and sale of the
applicable Securities, or any agreement of the type referred to in
Section 3(o) hereof; the compliance as to form of such Shelf Registration
Statement and any documents incorporated by reference therein and of the
Indenture with the requirements of the Securities Act and the Trust Indenture
Act, respectively; and, as of the date of the opinion and as of the effective
date of the Shelf Registration Statement or most recent post-effective
amendment thereto, as the case may be, the absence from such Shelf Registration
Statement and the prospectus included therein, as then amended or supplemented,
and from any documents incorporated by reference therein of an untrue statement
of a material fact or the omission to state therein a material fact required to
be stated therein or necessary to make the statements

 

11

 

therein not
misleading (in the case of any such documents, in the light of the
circumstances existing at the time that such documents were filed with the
Commission under the Exchange Act); (ii) its officers to execute and
deliver all customary documents and certificates and updates thereof requested
by any underwriters of the applicable Securities and (iii) its independent
public accountants to provide to the selling Holders of the applicable
Securities and any underwriter therefor a comfort letter in customary form and
covering matters of the type customarily covered in comfort letters in connection
with primary underwritten offerings, subject to receipt of appropriate
documentation as contemplated, and only if permitted, by Statement of Auditing
Standards No. 100.

 

(r)  If a Registered Exchange Offer or a
Private Exchange is to be consummated, upon delivery of the Initial Securities
by Holders to the Company (or to such other Person as directed by the Company)
in exchange for the Exchange Securities or the Private Exchange Securities, as
the case may be, the Company shall mark, or caused to be marked, on the Initial
Securities so exchanged that such Initial Securities are being canceled in
exchange for the Exchange Securities or the Private Exchange Securities, as the
case may be; in no event shall the Initial Securities be marked as paid or
otherwise satisfied.

 

(s)  The Company will use its reasonable
best efforts to (a) if the Initial Securities have been rated prior to the
initial sale of such Initial Securities, confirm such ratings will apply to the
Securities covered by a Registration Statement, or (b) if the Initial
Securities were not previously rated, cause the Securities covered by a
Registration Statement to be rated with the appropriate rating agencies, if so
requested by Holders of a majority in aggregate principal amount of Securities
covered by such Registration Statement, or by the managing underwriters, if
any.

 

(t)  In the event that any broker-dealer
registered under the Exchange Act shall underwrite any Securities or
participate as a member of an underwriting syndicate or selling group or
“assist in the distribution” (within the meaning of the Conduct Rules (the “Rules”) of the National Association of
Securities Dealers, Inc. (“NASD”))
thereof, whether as a Holder of such Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Company will assist such broker-dealer in complying with
the requirements of such Rules, including, without limitation, by (i) if
such Rules, including Rule 2720, shall so require, engaging a “qualified
independent underwriter” (as defined in Rule 2720) to participate in the
preparation of the Registration Statement relating to such Securities, to
exercise usual standards of due diligence in respect thereto and, if any
portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a placement or sales agent, to
recommend the yield of such Securities, (ii) indemnifying any such
qualified independent underwriter to the extent of the indemnification of underwriters
provided in Section 6 hereof and (iii) providing such information to
such broker-dealer as may be required in order for such broker-dealer
to comply with the requirements of the Rules.

 

12

 

(u)  The Company shall use its reasonable
best efforts to take all other steps necessary to effect the registration of
the Securities covered by a Registration Statement contemplated hereby.

 

4.  Market-Making.

 

(a)  For so long as any of the Securities
are outstanding and any of the Initial Purchasers (each in such capacity, a “Market-Maker” and collectively, the “Market-Makers”) or any of their respective
affiliates (as defined in the rules and regulations of the Commission) owns any
equity securities of the Company or its affiliates and proposes to make a
market in the Securities as part of its business in the ordinary course, unless
in the written opinion of outside counsel of the Company addressed to the
Market-Maker, based on the issuance of formal or informal guidance, advice or
other pronouncements by the Commission after the date hereof, that the
Market-Maker is not required to deliver a prospectus, the following provisions
shall apply for the sole benefit of each of the Market-Makers:

 

(i)  The Company shall (A) on the date
that the Exchange Offer Registration Statement is filed with the Commission,
file a registration statement (the “Market-Making
Registration Statement”) (which may be the Exchange Offer
Registration Statement or the Shelf Registration Statement if permitted by the
rules and regulations of the Commission) and use its reasonable best efforts to
cause such Market-Making Registration Statement to be declared effective by the
Commission on or prior to the consummation of the Exchange Offer; (B)
periodically amend such Market-Making Registration Statement so that the
information contained therein complies with the requirements of Section 10(a)
under the Securities Act; (C) amend the Market-Making Registration Statement or
supplement the related prospectus when necessary to reflect any material
changes in the information provided therein; and (D) amend the Market-Making
Registration Statement when required to do so in order to comply with Section
10(a)(3) of the Securities Act; provided, however, that (1) prior to filing the
Market-Making Registration Statement, any amendment thereto or any supplement
to the related prospectus, the Company will furnish to the Market-Makers copies
of all such documents proposed to be filed, which documents will be subject to
the review of the Market-Makers and their counsel, (2) the Company will not
file the Market-Making Registration Statement, any amendment thereto or any
supplement to the related prospectus to which either of the Market-Makers or
their counsel shall reasonably object unless the Company is advised by counsel
that such Market-Making Registration Statement, amendment or supplement is
required to be filed and (3) the Company will provide each of the Market-Makers
and their counsel with copies of the Market-Making Registration Statement and
each amendment and supplement filed.

 

13

 

(ii)  The Company shall notify each
Market-Maker and, if requested by any Market-Maker, confirm such advice in
writing, (A) when any post-effective amendment to the Market-Making
Registration Statement or any amendment or supplement to the related prospectus
has been filed, and, with respect to any post-effective amendment, when the
same has become effective; (B) of any request by the Commission for any
post-effective amendment to the Market-Making Registration Statement, any
supplement or amendment to the related prospectus or for additional
information; (C) the issuance by the Commission of any stop order suspending
the effectiveness of the Market-Making Registration Statement or the initiation
of any proceedings for that purpose; (D) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Securities for sale in any jurisdiction or the initiation or threatening of any
proceedings for such purpose; (E) of the happening of any event that makes any
statement made in the Market-Making Registration Statement, the related
prospectus or any amendment or supplement thereto untrue or that requires the
making of any changes in the Market-Making Registration Statement, such
prospectus or any amendment or supplement thereto, in order to make the
statements therein not misleading; and (F) of any advice from a nationally
recognized statistical rating organization that such organization has placed
the Company under surveillance or review with negative implications or has
determined to downgrade the rating of the Securities or any other debt
obligation of the Company whether or not such downgrade shall have been
publicly announced.

 

(iii)  If any event contemplated by Section
4(a)(ii)(B) through (F) occurs during the period for which the Company is
required to maintain an effective Market-Making Registration Statement, the
Company shall promptly prepare and file with the Commission a post-effective
amendment to the Market-Making Registration Statement or a supplement to the
related prospectus or file any other required document so that the prospectus
will not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading.

 

(iv)  In the event of the issuance of any
stop order suspending the effectiveness of the Market-Making Registration
Statement or of any order suspending the qualification of the Securities for
sale in any jurisdiction, the Company shall use promptly its reasonable best
efforts to obtain its withdrawal.

 

(v)  The Company shall furnish to each
Market-Maker, without charge, (i) at least one conformed copy of the
Market-Making Registration Statement and any post-effective amendment thereto;
and (ii) as many

 

14

 

copies of the
related prospectus and any amendment or supplement thereto as such Market-Maker
may reasonably request.

 

(vi)  The Company shall consent to the use
of the prospectus contained in the Market-Making Registration Statement or any
amendment or supplement thereto by each Market-Maker in connection its market
making activities.

 

(vii)  Notwithstanding the foregoing
provisions of this Section 4, the Company may for valid business reasons,
including without limitation, a potential acquisition, divestiture of assets or
other material corporate transaction, issue a notice that the Market-Making
Registration Statement is no longer effective or the prospectus included
therein is no longer usable for offers and sales of Securities and may issue
any notice suspending use of the Market-Making Registration Statement required
under applicable securities laws to be issued; provided that the use of the
Market-Making Registration Statement shall not be suspended for more than 60
days in the aggregate in any consecutive 12 month period.  Each Market-Maker agrees that upon receipt
of any notice from the Company pursuant to this Section 4(a)(vii), it will
discontinue use of the Market-Making Registration Statement until receipt of
copies of the supplemented or amended prospectus relating thereto or until
advised in writing by the Company that the use of the Market-Making
Registration Statement may be resumed.

 

(b)  In connection with each Market-Making
Registration Statement, the Company shall (i) make reasonably available for
inspection by a representative of, and counsel acting for, each Market-Maker
all relevant financial and other records, pertinent corporate documents and
properties of the Company and (ii) use its reasonable best efforts to have its
officers, directors, employees, accountants and counsel supply all relevant
information reasonably requested by such representative or counsel or such
Market-Maker.

 

(c)  Prior to the effective date of the
Market-Making Registration Statement, the Company shall use its reasonable best
efforts to register or qualify such Securities for offer and sale under the
securities or “blue sky” laws of such jurisdictions as each Market-Maker
reasonably requests in writing and do any and all other acts or things
necessary or advisable to enable the offer and sale in such jurisdictions of
the Securities covered by the Market-Making Registration Statement; provided
that the Company shall not be required to qualify generally to do business in
any jurisdiction where it is not then so qualified or to take any action which
would subject to it general service of process or to taxation in any such
jurisdiction where it is not then so subject.

 

(d)  The Company represents that the
Market-Making Registration Statement, any post-effective amendments thereto,
any amendments or supplements to the related prospectus and any documents filed
by it under the

 

15

 

Exchange Act
will, when they become effective or are filed with the Commission, as the case
may be, conform in all respects to the requirements of the Securities Act and
the Exchange Act and the rules and regulations of the Commission thereunder and
will not, as of the effective date of such Market-Making Registration Statement
or post-effective amendments and as of the filing date of amendments or
supplements to such prospectus or filings under the Exchange Act, contain an
untrue statement of a material fact or omit to state 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; provided that no
representation or warranty is made as to information contained in or omitted
from the Market-Making Registration Statement or the related prospectus in
reliance upon and in conformity with written information furnished to the
Company by the Market-Makers specifically for inclusion therein, which
information the parties hereto agree will be limited to the statements
concerning the Market-Making activities of the Market-Makers to be set forth on
the cover page and in the “Plan of Distribution” section of the prospectus.

 

(e)  At the time of effectiveness of the
Market-Making Registration Statement (unless it is the same as the time of
effectiveness of the Exchange Offer Registration Statement) and concurrently
with each time the Market-Making Registration Statement or the related
prospectus shall be amended or such prospectus shall be supplemented, the
Company shall (if requested in writing by either Market-Maker) furnish the
Market-Makers and their counsel with a certificate of its Chairman of the Board
of Directors or Chief Financial Officer to the effect that:

 

(i)  the Market-Making Registration
Statement has been declared effective; (ii) in the case of an amendment or
supplement, such amendment has become effective under the Securities Act as of
the date and time specified in such certificate, if applicable; if required,
such amendment or supplement to the prospectus was filed with the Commission
pursuant to the subparagraph of Rule 424(b) under the Securities Act specified
in such certificate on the date specified therein; (iii) to the knowledge of
such officers, no stop order suspending the effectiveness of the Market-Making
Registration Statement has been issued and no proceeding for that purpose is
pending or threatened by the Commission; (iv) such officers have carefully
examined the Market-Making Registration Statement and the prospectus (and, in
the case of an amendment or supplement, such amendment or supplement) and as of
the date of such Market-Making Registration Statement, amendment or supplement,
as applicable, the Market-Making Registration Statement and the prospectus, as
amended or supplemented, if applicable, did not include any untrue statement of
a material fact and did not omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading.

 

16

 

(f)  The Company, on the one hand, and
each Market-Maker, on the other hand, hereby agree to indemnify each other,
and, if applicable, contribute to the other, in accordance with Section 6 of
this Agreement.

 

(g)  The Company will comply with the
provisions of this Section 4 at its own expense.

 

(h)  The agreements contained in this Section
4 and the representations, warranties and agreements contained in this
Agreement shall survive all offers and sales of the Notes and Exchange Notes
and 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.

 

(i)  For purposes of this Section 4, any
reference to the terms “amend”, “amendment” or “supplement” with respect to the
Market-Making Registration Statement or the prospectus contained therein shall
be deemed to refer to and include the filing under the Exchange Act of any
document deemed to be incorporated therein by reference.

 

5.  Registration Expenses.

 

(a)  All expenses incident to the
Company’s performance of and compliance with this Agreement will be borne by
the Company, regardless of whether a Registration Statement is ever filed or
becomes effective, including without limitation;

 

(i)  all registration and filing fees and
expenses;

 

(ii)  all fees and expenses of compliance
with federal securities and state “blue sky” or securities laws;

 

(iii)  all expenses of printing (including
printing certificates for the Securities to be issued in the Registered
Exchange Offer and the Private Exchange and printing of Prospectuses), messenger
and delivery services and telephone;

 

(iv)  all fees and disbursements of counsel
for the Company;

 

(v)  all application and filing fees in
connection with listing the Exchange Securities on a national securities
exchange or automated quotation system pursuant to the requirements hereof; and

 

(vi)  all fees and disbursements of
independent certified public accountants of the Company (including the expenses
of any special audit and comfort letters required by or incident to such
performance).

 

The Company will bear its internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing
legal or

 

17

 

accounting duties), the expenses of any annual audit and the fees and
expenses of any person, including special experts, retained by the Company.

 

(b)  In connection with any Registration
Statement required by this Agreement, the Company will reimburse the Initial
Purchasers and the Holders of Transfer Restricted Securities who are tendering
Initial Securities in the Registered Exchange Offer and/or selling or reselling
Securities pursuant to the “Plan of Distribution” contained in the Exchange
Offer Registration Statement or the Shelf Registration Statement, as
applicable, for the reasonable fees and disbursements of not more than one
counsel, who shall be Cravath, Swaine & Moore LLP unless another firm shall
be chosen by the Holders of a majority in principal amount of the Transfer
Restricted Securities for whose benefit such Registration Statement is being
prepared.

 

6.  Indemnification.

 

(a)  The Company agrees to indemnify and
hold harmless (x) each Holder of the Securities (including each Market Maker)
included in a Registration Statement, any Participating Broker-Dealer and
each person, if any, who controls such Holder (including, in each case, each
Market-Maker) or such Participating Broker-Dealer within the meaning of
the Securities Act or the Exchange Act (each Holder, any Participating Broker-Dealer
and such controlling persons are referred to collectively as the “Indemnified  Parties”) from and against any losses, claims, damages or
liabilities, joint or several, or any actions in respect thereof (including,
but not limited to, any losses, claims, damages, liabilities or actions
relating to purchases and sales of the Securities) to which each Indemnified
Party may become subject under the Securities Act, the Exchange Act or
otherwise, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in a Registration Statement or prospectus or in
any amendment or supplement thereto or in any preliminary prospectus relating
to a Shelf Registration, or arise out of, or are 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 not misleading, and shall
reimburse, as incurred, the Indemnified Parties for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action in respect thereof; provided,
however, that (i) the Company shall not be liable in any such case
to the extent that such loss, claim, damage or liability arises out of or is
based upon any untrue statement or alleged untrue statement or omission or
alleged omission made in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary prospectus relating to a
Shelf Registration in reliance upon and in conformity with written information
pertaining to such Holder or the Market Makers (the “Market-Maker Information”), respectively, and furnished to the
Company by or on behalf of such Holder or such Market Maker, respectively,
specifically for inclusion therein and (ii) with respect to any untrue
statement or omission or alleged untrue statement or omission made in any
preliminary prospectus relating

 

18

 

to a Shelf
Registration Statement, the indemnity agreement contained in this
subsection (a) shall not inure to the benefit of any Holder (including
each Market-Maker) or Participating Broker-Dealer from whom the person
asserting any such losses, claims, damages or liabilities purchased the
Securities concerned, to the extent that a prospectus relating to such
Securities was required to be delivered by such Holder or Participating Broker-Dealer
under the Securities Act in connection with such purchase and any such loss,
claim, damage or liability of such Holder or Participating Broker-Dealer
results from the fact that there was not sent or given to such person, at or
prior to the written confirmation of the sale of such Securities to such
person, a copy of the final prospectus if the Company had previously furnished
copies thereof to such Holder or Participating Broker-Dealer; and
(y) each Market-Maker from and against any and all losses, claims, damages
and liabilities (including without limitation, legal fees and other expenses
incurred in connection with any suit, action or proceeding or any claim
asserted, as such fees and expense are incurred), that arise out of, or based
upon, any breach of the Company of its representations and warranties and
agreements and contained in Section 4 of this Agreement; provided  further,
however, that this indemnity agreement will be in addition to any
liability which the Company may otherwise have to such Indemnified Party.  The Company shall also indemnify
underwriters, their officers and directors and each person who controls such
underwriters within the meaning of the Securities Act or the Exchange Act to
the same extent as provided above with respect to the indemnification of the
Holders of the Securities if requested by such Holders.

 

(b)  Each Holder of the Securities
(including each Market-Maker), severally and not jointly, will indemnify and
hold harmless the Company and each person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act from and against
any losses, claims, damages or liabilities or any actions in respect thereof,
to which the Company or any such controlling person may become subject under
the Securities Act, the Exchange Act or otherwise, insofar as such losses,
claims, damages, liabilities or actions arise out of or are based upon any
untrue statement or alleged untrue statement of a material fact contained in a
Registration Statement or prospectus or in any amendment or supplement thereto or
in any preliminary prospectus relating to a Shelf Registration, or arise out of
or are based upon the omission or alleged omission to state therein a material
fact necessary to make the statements therein not misleading, but in each case
only to the extent that the untrue statement or omission or alleged untrue
statement or omission was made in reliance upon and in conformity with written
information pertaining to such Holder or the Market-Maker Information,
respectively, and furnished to the Company by or on behalf of such Holder or
the Market-Makers, as the case may be, specifically for inclusion therein; and,
subject to the limitation set forth immediately preceding this clause, shall
reimburse, as incurred, the Company for any legal or other expenses reasonably
incurred by the Company or any such controlling person in connection with
investigating or defending any loss, claim, damage, liability or action in
respect thereof.  This indemnity
agreement will be in addition to any liability

 

19

 

which such
Holder may otherwise have to the Company or any of its controlling persons.

 

(c)  Promptly after receipt by an
indemnified party under this Section 6 of notice of the commencement of
any action or proceeding (including a governmental investigation), such
indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 6, notify the indemnifying party of
the commencement thereof; but the failure to notify the indemnifying party
shall not relieve it from any liability that it may have under subsection (a)
or (b) above except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure; and
provided further that the failure to notify the indemnifying party shall not
relieve it from any liability that it may have to an indemnified party
otherwise than under subsection (a) or (b) above.  In case any such action is brought against any indemnified party,
and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent
that it may wish, jointly with any other indemnifying party similarly notified,
to assume the defense thereof, with counsel reasonably satisfactory to such
indemnified party (who shall not, except with the consent of the indemnified
party, be counsel to the indemnifying party), and after notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof the indemnifying party will not be liable to such indemnified
party under this Section 6 for any legal or other expenses, other than
reasonable costs of investigation, subsequently incurred by such indemnified
party in connection with the defense thereof. 
No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened action 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) includes an unconditional release of such indemnified party
from all liability on any claims that are the subject matter of such action,
and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party.

 

(d)  If the indemnification provided for
in this Section 6 is unavailable or insufficient to hold harmless an
indemnified party under subsections (a) or (b) above, then each indemnifying
party shall contribute to the amount paid or payable by such indemnified party
as a result of the losses, claims, damages or liabilities (or actions in
respect thereof) referred to in subsection (a) or (b) above in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party or parties on the one hand and the indemnified party on the other in
connection with the statements or omissions that resulted in such losses, claims,
damages or liabilities (or actions in respect thereof) as well as any other
relevant equitable considerations.  The
relative fault of the parties shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to
information supplied by the Company on the one hand or such Holder or such
other indemnified party or the Market-Maker Information, as the case may

 

20

 

be, on the
other, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.  The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first
sentence of this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this
subsection (d).  Notwithstanding
any other provision of this Section 6(d), the Holders (including the
Market-Makers) of the Securities shall not be required to contribute any amount
in excess of the amount by which the net proceeds received by such Holders from
the sale of the Securities pursuant to a Registration Statement exceeds the
amount of damages which such Holders (or such Market-Maker) have otherwise been
required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.  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.  For purposes of this paragraph (d), each
person, if any, who controls such indemnified party within the meaning of the
Securities Act or the Exchange Act shall have the same rights to contribution
as such indemnified party and each person, if any, who controls the Company
within the meaning of the Securities Act or the Exchange Act shall have the
same rights to contribution as the Company.

 

(e)  The agreements contained in this
Section 6 shall survive the sale of the Securities pursuant to a
Registration Statement and 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.

 

7.  Additional Interest Under Certain
Circumstances.

 

(a)  Additional interest (the “Additional  Interest”) with respect to the Securities shall be assessed as
follows if any of the following events occur (each such event in
clauses (i) through (iv) below being herein called a “Registration Default”):

 

(i)  any Registration Statement (other
than a Market-Making Registration Statement) required by this Agreement is not
filed with the Commission on or prior to the applicable Filing Deadline;

 

(ii)  any Registration Statement (other
than a Market-Making Registration Statement) required by this Agreement is not
declared effective by the Commission on or prior to the applicable
Effectiveness Deadline;

 

(iii)  the Registered Exchange Offer has not
been consummated on or prior to the Consummation Deadline; or

 

21

 

(iv)  any Registration Statement (other
than a Market-Making Registration Statement) required by this Agreement has
been declared effective by the Commission but (A) such Registration
Statement thereafter ceases to be effective or (B) such Registration
Statement or the related prospectus ceases to be usable in connection with
resales of Transfer Restricted Securities during the periods specified herein
because either (1) any event occurs as a result of which the related
prospectus forming part of such Registration Statement would include any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein in the light of the circumstances under which they
were made not misleading, or (2) it shall be necessary to amend such
Registration Statement or supplement the related prospectus, to comply with the
Securities Act or the Exchange Act or the respective rules thereunder.

 

Each of the foregoing will constitute a Registration Default whatever
the reason for any such event and whether it is voluntary or involuntary or is
beyond the control of the Company or pursuant to operation of law or as a
result of any action or inaction by the Commission .

 

Additional Interest shall accrue on the Securities over and above the
interest set forth in the title of the Securities from and including the date
on which any such Registration Default shall occur to but excluding the date on
which all such Registration Defaults have been cured, at a rate of 0.25% per
annum (the “Additional Interest Rate”)
for the first 90-day period immediately following the occurrence of such
Registration Default.  The Additional
Interest Rate shall increase by an additional 0.25% per annum with respect to
each subsequent 90-day period until all Registration Defaults have been cured,
up to a maximum Additional Interest Rate of 1.0% per annum.

 

(b)  A Registration Default referred to in
Section 7(a)(iv) hereof shall be deemed not to have occurred and be
continuing in relation to a Shelf Registration Statement or the related
prospectus if (i) such Registration Default has occurred solely as a
result of (x) the filing of a post-effective amendment to such Shelf
Registration Statement to incorporate annual audited financial information with
respect to the Company where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the
related prospectus or (y) other material events, with respect to the Company
that would need to be described in such Shelf Registration Statement or the
related prospectus and (ii) in the case of clause (y), the Company is
proceeding promptly and in good faith to amend or supplement such Shelf
Registration Statement and related prospectus to describe such events; provided,
however, that in any case if such Registration Default occurs for a
continuous period in excess of 30 days, Additional Interest shall be
payable in accordance with the above paragraph from the day such
Registration Default occurs until such Registration Default is cured.

 

22

 

(c)  Any amounts of Additional Interest
due pursuant to Section 7(a) will be payable in cash on the regular
interest payment dates with respect to the Securities.  The amount of Additional Interest will be
determined by multiplying the applicable Additional Interest Rate by the
principal amount of the Securities and further multiplied by a fraction, the
numerator of which is the number of days such Additional Interest Rate was
applicable during such period (determined on the basis of a 360-day year
comprised of twelve 30-day months), and the denominator of which is 360.

 

(d)  “Transfer
Restricted Securities” means each Security until (i) the date
on which such Security has been exchanged by a person other than a broker-dealer
for a freely transferable Exchange Security in the Registered Exchange Offer,
(ii) following the exchange by a broker-dealer in the Registered
Exchange Offer of an Initial Security for an Exchange Note, the date on which
such Exchange Note is sold to a purchaser who receives from such broker-dealer
on or prior to the date of such sale a copy of the prospectus contained in the
Exchange Offer Registration Statement, (iii) the date on which such
Security has been effectively registered under the Securities Act and disposed
of in accordance with the Shelf Registration Statement or (iv) the date on
which such Security is distributed to the public pursuant to Rule 144
under the Securities Act or is saleable pursuant to Rule 144(k) under the
Securities Act.

 

8.  Rules 144 and 144A. 
The Company shall use its reasonable best efforts to file the reports
required to be filed by it under the Securities Act and the Exchange Act in a
timely manner and, if at any time the Company is not required to file such
reports, it will, upon the request of any Holder of Securities or either
Market-Maker, make publicly available other information so long as necessary to
permit sales of their securities pursuant to Rules 144 and 144A.  The Company covenants that it will take such
further action as any Holder of Securities or either Market-Maker may
reasonably request, all to the extent required from time to time to enable such
Holder or such Market-Maker to sell such Securities without registration under
the Securities Act within the limitation of the exemptions provided by
Rules 144 and 144A (including the requirements of
Rule 144A(d)(4)).  The Company will
provide a copy of this Agreement to prospective purchasers of Initial
Securities identified to the Company by the Initial Purchasers upon
request.  Upon the request of any Holder
of Initial Securities or either Market-Maker, the Company shall deliver to such
Holder or such Market-Maker a written statement as to whether it has complied with
such requirements.  Notwithstanding the
foregoing, nothing in this Section 8 shall be deemed to require the
Company to register any of its securities pursuant to the Exchange Act.

 

9.  Underwritten Registrations. 
If any of the Transfer Restricted Securities covered by any Shelf
Registration are to be sold in an underwritten offering, the investment banker
or investment bankers and manager or managers that will administer the offering
(“Managing Underwriters”) will be
selected by the Holders of a majority in aggregate principal amount of such
Transfer Restricted Securities to be included in such offering.

 

23

 

No person may
participate in any underwritten registration hereunder unless such person (i)
agrees to sell such person’s Transfer Restricted Securities on the basis
reasonably provided in any underwriting arrangements approved by the persons
entitled hereunder to approve such arrangements and (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements
and other documents reasonably required under the terms of such underwriting
arrangements.

 

10.  Miscellaneous.

 

(a)  Remedies.  The Company acknowledges and agrees that any
failure by the Company to comply with its obligations under Section 1 and
2 hereof may result in material irreparable injury to the Initial Purchasers or
the Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchasers or any Holder may obtain such
relief as may be required to specifically enforce the Company’s obligations
under Sections 1 and 2 hereof.  The
Company further agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

 

(b)  No
Inconsistent Agreements.  The
Company will not on or after the date of this Agreement enter into any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders or the Market-Makers in this Agreement or otherwise
conflicts with the provisions hereof. 
The rights granted to the Holders hereunder do not in any way conflict
with and are not inconsistent with the rights granted to the holders of the
Company’s securities or the Market-Makers under any agreement in effect on the
date hereof.

 

(c)  Amendments
and Waivers.  The provisions
of this Agreement may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, except by
the Company and the written consent of the Holders of a majority in principal
amount of the Securities affected by such amendment, modification, supplement,
waiver or consents or, with respect to Section 4, the written consent of
the Market Makers.  Without the consent
of the Holder of each Security, however, no modification may change the
provisions relating to the payment of Additional Interest.

 

(d)  Notices.  All notices and other communications
provided for or permitted hereunder shall be made in writing by hand delivery,
first-class mail, facsimile transmission, or air courier which guarantees
overnight delivery:

 

(1) 
if to a Holder of the Securities, at the most current address given by
such Holder to the Company.

 

(2) 
if to the Initial Purchasers;

 

Credit Suisse First Boston LLC

Eleven Madison Avenue

New York, NY 10010-3629

 

24

 

Fax No.:  (212) 325-8278

Attention:  Transactions
Advisory Group

 

and

 

Goldman, Sachs & Co.

85 Broad Street

New York, NY 10004

Fax No.: (212) 357-5505

Attention:  Registration
Department

 

with a copy to:

 

Cravath, Swaine & Moore LLP

825 Eighth Avenue

New York, NY 10019

Fax No.:  (212) 474-3700

Attention:  William J. Whelan,
III, Esq.

 

(3) 
if to the Company;

 

Sensus Metering Systems, Inc.

8609 Six Forks Road

Raleigh, NC  27615

Fax No.:  (919) 845-3545

Attention:  Corporate Secretary

 

with a copy to:

 

Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, NY  10019

Fax No.:  (212) 262-1910

 

Attention:  James B. Carlson

 

(4)  If to the Market-Makers:

 

Goldman, Sachs & Co.

85 Broad Street

New York, NY 10004

Fax No.: (212) 357-5505

Attention:  Registration
Department

 

and

 

25

 

Credit Suisse First Boston LLC

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.:  (212) 325-8278

Attention:  Transactions
Advisory Group

 

All such notices and communications shall be
deemed to have been duly given:  at the
time delivered by hand, if personally delivered; three business days after
being deposited in the mail, postage prepaid, if mailed; when receipt is
acknowledged by recipient’s facsimile machine operator, if sent by facsimile
transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

 

(e)  Third
Party Beneficiaries.  The
Holders shall be third party beneficiaries to the agreements made hereunder
between the Company, on the one hand, and the Initial Purchasers, on the other
hand, and shall have the right to enforce such agreements directly to the
extent they may deem such enforcement necessary or advisable to protect their
rights or the rights of Holders hereunder.

 

(f)  Successors
and Assigns.  This Agreement
shall be binding upon the Company and its successors and assigns.

 

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

 

(h)  Headings.  The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

(i)  Governing
Law.  THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

(j)  Severability.  If any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of
any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

 

(k)  Securities
Held by the Company. 
Whenever the consent or approval of Holders of a specified percentage of
principal amount of Securities is required hereunder, Securities held by the
Company or its affiliates (other than subsequent Holders of Securities if such
subsequent Holders are deemed to be affiliates solely by reason of their
holdings of such Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

 

26

 

(l)  The Company hereby submits to the
non-exclusive jurisdiction of the Federal and State courts in the Borough of
Manhattan in the City of New York in any suit or proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby.

 

27

 

If the foregoing is in accordance with your
understanding of our agreement, please sign and return to the Issuer a
counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement among the several Initial Purchasers, the
Issuer, the Parent Guarantor and the Subsidiary Guarantors in accordance with
its terms.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS INC.

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS (BERMUDA 2) LTD.

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INVENSYS METERING HEADQUARTERS CORP.

  (to be renamed Sensus Metering Headquarters Corp.)

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

28

 

	
   

  	
  SMITH-BLAIR INC.

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INVENSYS METERING SYSTEMS – NORTH AMERICA

  (to be renamed Sensus Metering Systems—North America Inc.)

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INVENSYS PRECISION DIE CASTING INC.

  (to be renamed Sensus Precision Die Casting Inc.)

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  M&FC HOLDING COMPANY LLC

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS IP HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

29

 

The foregoing Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.

 

 

	
  Credit Suisse First Boston LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Goldman, Sachs & Co.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

30

 

ANNEX A

 

Each broker-dealer
that receives Exchange Securities for its own account pursuant to the Exchange
Offer must acknowledge that it will deliver a prospectus in connection with any
resale of such Exchange Securities.  The
Letter of Transmittal states that by so acknowledging and by delivering a
prospectus, a broker-dealer will not be deemed to admit that it is an
“underwriter” within the meaning of the Securities Act.  This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in
connection with resales of Exchange Securities received in exchange for Initial
Securities where such Initial Securities were acquired by such broker-dealer
as a result of market-making activities or other trading activities.  The Company has agreed that, for a period of
180 days after the Expiration Date (as defined herein), it will make this
Prospectus available to any broker-dealer for use in connection with any
such resale.  See “Plan of
Distribution.”

 

31

 

ANNEX B

 

Each broker-dealer
that receives Exchange Securities for its own account in exchange for Initial
Securities, where such Initial Securities were acquired by such broker-dealer
as a result of market-making activities or other trading activities, must
acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities.  See “Plan of
Distribution.”

 

32

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each broker-dealer
that receives Exchange Securities for its own account pursuant to the Exchange
Offer must acknowledge that it will deliver a prospectus in connection with any
resale of such Exchange Securities. 
This Prospectus, as it may be amended or supplemented from time to time,
may be used by a broker-dealer in connection with resales of Exchange
Securities received in exchange for Initial Securities where such Initial
Securities were acquired as a result of market-making activities or other
trading activities.  The Company has
agreed that, for a period of 180 days after the Expiration Date, it will
make this prospectus, as amended or supplemented, available to any broker-dealer
for use in connection with any such resale. 
In addition, until
                    ,
200 , all dealers effecting transactions in the Exchange Securities may be
required to deliver a prospectus.(1)

 

The Company
will not receive any proceeds from any sale of Exchange Securities by broker-dealers.  Exchange Securities received by broker-dealers
for their own account pursuant to the Exchange Offer may be sold from time to
time in one or more transactions in the over-the-counter market, in
negotiated transactions, through the writing of options on the Exchange
Securities or a combination of such methods of resale, at market prices
prevailing at the time of resale, at prices related to such prevailing market
prices or negotiated prices.  Any such
resale may be made directly to purchasers or to or through brokers or dealers
who may receive compensation in the form of commissions or concessions from any
such broker-dealer or the purchasers of any such Exchange
Securities.  Any broker-dealer
that resells Exchange Securities that were received by it for its own account
pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter”
within the meaning of the Securities Act and any profit on any such resale of
Exchange Securities and any commission or concessions received by any such
persons may be deemed to be underwriting compensation under the Securities
Act.  The Letter of Transmittal states
that, by acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act.

 

For a period
of 180 days after the Expiration Date the Company will promptly send
additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any broker-dealer that requests such documents in the
Letter of Transmittal.  The Company has
agreed to pay all expenses incident to the Exchange Offer (including

 

(1)           In addition, the legend required by
Item 502(b) of Regulation S-K will appear on the inside front cover page
of the Exchange Offer prospectus below the Table of Contents.

33

 

the expenses of one counsel for
the Holders of the Securities) other than commissions or concessions of any
brokers or dealers and will indemnify the Holders of the Securities (including
any broker-dealers) against certain liabilities, including liabilities
under the Securities Act.

 

34

 

ANNEX D

 

[   ]  CHECK HERE
IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF
THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  

 

If the undersigned is not a broker-dealer, the undersigned
represents that it is not engaged in, and does not intend to engage in, a
distribution of Exchange Securities.  If
the undersigned is a broker-dealer that will receive Exchange Securities
for its own account in exchange for Initial Securities that were acquired as a
result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
“underwriter” within the meaning of the Securities Act.

 

35

 

SCHEDULE I

 

 

M&FC Holding LLC

Invensys Metering Headquarters Corp.

Smith—Blair Inc.

Invensys Metering Systems – North America

Invensys Precision Die Casting Inc.

Sensus Metering Systems IP Holdings, Inc.

 

36EXHIBIT 10.1

 

EXECUTION
COPY

 

 

CREDIT AGREEMENT

 

dated as of December 17, 2003,

 

among

 

SENSUS METERING SYSTEMS INC.,

 

SENSUS METERING SYSTEMS (LUXCO 2) S.ÀR.L.,

 

SENSUS METERING SYSTEMS (BERMUDA 2) LTD.,

 

THE LENDERS NAMED HEREIN,

 

CREDIT SUISSE FIRST BOSTON,

 

as General Administrative Agent and U.S.
Collateral Agent

 

and

 

CREDIT SUISSE FIRST BOSTON,

 

as European Administrative Agent and European
Collateral Agent

 

 

CREDIT SUISSE FIRST BOSTON

 

and

 

GOLDMAN SACHS CREDIT PARTNERS L.P.,

 

as Joint Bookrunners and Joint Lead
Arrangers,

 

GOLDMAN SACHS CREDIT PARTNERS L.P.,

 

as Syndication Agent

 

and

 

NATIONAL CITY BANK,

 

as Documentation Agent

 

[CS&M Ref No. 5865-210]

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I

  
	
   

  	
   

  
	
  DEFINITIONS

  
	
   

  	
   

  
	
  SECTION 1.01.  Defined Terms

  	
   

  
	
  SECTION 1.02.  Terms Generally

  	
   

  
	
  SECTION 1.03.  Pro Forma Calculations

  	
   

  
	
  SECTION 1.04.  Classification of Loans and Borrowings

  	
   

  
	
  SECTION 1.05.  Exchange Rates

  	
   

  
	
  SECTION 1.06.  Redenomination of Certain Designated Foreign Currencies

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  II

  
	
   

  	
   

  
	
  THE
  CREDITS

  
	
   

  	
   

  
	
  SECTION 2.01.  Commitments

  	
   

  
	
  SECTION 2.02.  Loans

  	
   

  
	
  SECTION 2.03.  Borrowing Procedure

  	
   

  
	
  SECTION 2.04.  Evidence of Debt; Repayment of Loans

  	
   

  
	
  SECTION 2.05.  Fees

  	
   

  
	
  SECTION 2.06.  Interest on Loans

  	
   

  
	
  SECTION 2.07.  Default Interest

  	
   

  
	
  SECTION 2.08.  Alternate Rate of Interest

  	
   

  
	
  SECTION 2.09.  Termination and Reduction of Commitments

  	
   

  
	
  SECTION 2.10.  Conversion and Continuation of Borrowings

  	
   

  
	
  SECTION 2.11.  Repayment of Term Borrowings

  	
   

  
	
  SECTION 2.12.  Optional Prepayments

  	
   

  
	
  SECTION 2.13.  Mandatory Prepayments

  	
   

  
	
  SECTION 2.14.  Reserve Requirements; Change in Circumstances

  	
   

  
	
  SECTION 2.15.  Change in Legality

  	
   

  
	
  SECTION 2.16.  Indemnity

  	
   

  
	
  SECTION 2.17.  Pro Rata Treatment

  	
   

  
	
  SECTION 2.18.  Sharing of Setoffs

  	
   

  
	
  SECTION 2.19.  Payments

  	
   

  
	
  SECTION 2.20.  Taxes

  	
   

  
	
  SECTION 2.21.  Assignment of Commitments Under Certain Circumstances; Duty to
  Mitigate

  	
   

  
	
  SECTION 2.22.  Swingline Loans

  	
   

  
	
  SECTION 2.23.  Letters of Credit

  	
   

  
	
  SECTION 2.24.  Increase in Term Loan Commitments

  	
   

  
	
  SECTION 2.25.  Increase in Revolving Commitments

  	
   

  

 

 

	
  ARTICLE
  III

  
	
   

  	
   

  
	
  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
   

  
	
  SECTION 3.01.  Organization; Powers

  	
   

  
	
  SECTION 3.02.  Authorization

  	
   

  
	
  SECTION 3.03.  Enforceability

  	
   

  
	
  SECTION 3.04.  Governmental Approvals

  	
   

  
	
  SECTION 3.05.  Financial Statements

  	
   

  
	
  SECTION 3.06.  No Material Adverse Change

  	
   

  
	
  SECTION 3.07.  Title to Properties; Possession Under Leases

  	
   

  
	
  SECTION 3.08.  Subsidiaries

  	
   

  
	
  SECTION 3.09.  Litigation; Compliance with Laws

  	
   

  
	
  SECTION 3.10.  Material Agreements

  	
   

  
	
  SECTION 3.11.  Federal Reserve Regulations

  	
   

  
	
  SECTION 3.12.  Investment Company Act; Public Utility Holding Company Act

  	
   

  
	
  SECTION 3.13.  Use of Proceeds

  	
   

  
	
  SECTION 3.14.  Tax Returns

  	
   

  
	
  SECTION 3.15.  No Material Misstatements

  	
   

  
	
  SECTION 3.16.  Employee Benefit Plans

  	
   

  
	
  SECTION 3.17.  Environmental Matters

  	
   

  
	
  SECTION 3.18.  Insurance

  	
   

  
	
  SECTION 3.19.  Security Documents

  	
   

  
	
  SECTION 3.20.  Location of Real Property and Leased Premises

  	
   

  
	
  SECTION 3.21.  Labor Matters

  	
   

  
	
  SECTION 3.22.  Solvency

  	
   

  
	
  SECTION 3.23.  Purchase Agreement

  	
   

  
	
  SECTION 3.24.  Senior Indebtedness

  	
   

  
	
  SECTION 3.25.  Certain Treasury Regulation Matters

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  IV

  
	
   

  	
   

  
	
  CONDITIONS OF LENDING

  
	
   

  	
   

  
	
  SECTION 4.01.  All Credit Events

  	
   

  
	
  SECTION 4.02.  First Credit Event

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  V

  
	
   

  	
   

  
	
  AFFIRMATIVE COVENANTS

  
	
   

  	
   

  
	
  SECTION 5.01.  Existence; Businesses and Properties

  	
   

  
	
  SECTION 5.02.  Insurance

  	
   

  
	
  SECTION 5.03.  Obligations and Taxes

  	
   

  
	
  SECTION 5.04.  Financial Statements, Reports, etc

  	
   

  

 

ii

 

	
  SECTION 5.05.  Litigation and Other Notices

  	
   

  
	
  SECTION 5.06.  Information Regarding Collateral

  	
   

  
	
  SECTION 5.07.  Maintaining Records; Access to Properties and Inspections

  	
   

  
	
  SECTION 5.08.  Use of Proceeds

  	
   

  
	
  SECTION 5.09.  Further Assurances

  	
   

  
	
  SECTION 5.10.  Employee Benefits

  	
   

  
	
  SECTION 5.11.  Compliance with Environmental Laws

  	
   

  
	
  SECTION 5.12.  Certain Treasury Regulation Matters

  	
   

  
	
  SECTION 5.13.  Domestic Subsidiaries

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VI

  
	
   

  	
   

  
	
  NEGATIVE COVENANTS

  
	
   

  	
   

  
	
  SECTION 6.01.  Indebtedness

  	
   

  
	
  SECTION 6.02.  Liens

  	
   

  
	
  SECTION 6.03.  Sale and Lease-Back Transactions

  	
   

  
	
  SECTION 6.04.  Investments, Loans and Advances

  	
   

  
	
  SECTION 6.05.  Mergers, Amalgamations, Consolidations, Sales of Assets and
  Acquisitions

  	
   

  
	
  SECTION 6.06.  Restricted Payments; Restrictive Agreements

  	
   

  
	
  SECTION 6.07.  Transactions with Affiliates

  	
   

  
	
  SECTION 6.08.  Business of Holdings, the Borrowers and the Subsidiaries

  	
   

  
	
  SECTION 6.09.  Other Indebtedness and Agreements

  	
   

  
	
  SECTION 6.10.  Interest Coverage Ratio

  	
   

  
	
  SECTION 6.11.  Fixed Charge Coverage Ratio

  	
   

  
	
  SECTION 6.12.  Maximum Leverage Ratio

  	
   

  
	
  SECTION 6.13.  Fiscal Year

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  VII

  
	
   

  	
   

  
	
  EVENTS
  OF DEFAULT

  
	
   

  	
   

  
	
  ARTICLE
  VIII

  
	
   

  	
   

  
	
  THE ADMINISTRATIVE AGENTS AND THE
  COLLATERAL AGENTS

  
	
   

  	
   

  
	
  ARTICLE
  IX

  
	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  
	
  SECTION 9.01.  Notices

  	
   

  
	
  SECTION 9.02.  Survival of Agreement

  	
   

  
	
  SECTION 9.03.  Binding Effect

  	
   

  
	
  SECTION 9.04.  Successors and Assigns

  	
   

  

 

iii

 

	
  SECTION 9.05.  Expenses; Indemnity

  	
   

  
	
  SECTION 9.06.  Right of Setoff

  	
   

  
	
  SECTION 9.07.  Applicable Law

  	
   

  
	
  SECTION 9.08.  Waivers; Amendment

  	
   

  
	
  SECTION 9.09.  Interest Rate Limitation

  	
   

  
	
  SECTION 9.10.  Entire Agreement

  	
   

  
	
  SECTION 9.11.  WAIVER OF JURY TRIAL

  	
   

  
	
  SECTION 9.12.  Severability

  	
   

  
	
  SECTION 9.13.  Counterparts

  	
   

  
	
  SECTION 9.14.  Headings

  	
   

  
	
  SECTION 9.15.  Jurisdiction; Consent to Service of Process

  	
   

  
	
  SECTION 9.16.  CAM Exchange

  	
   

  
	
  SECTION 9.17.  Confidentiality

  	
   

  

 

Schedules

 

	
  Schedule 1.01(a)

  	
   

  	
  Subsidiary Guarantors

  
	
  Schedule 1.01(b)

  	
   

  	
  Mortgaged Properties

  
	
  Schedule 1.01(c)

  	
   

  	
  Certain Immaterial Subsidiaries

  
	
  Schedule 2.01

  	
   

  	
  Lenders and Commitments

  
	
  Schedule 3.04

  	
   

  	
  Governmental Approvals

  
	
  Schedule 3.08

  	
   

  	
  Subsidiaries

  
	
  Schedule 3.09

  	
   

  	
  Litigation

  
	
  Schedule 3.17

  	
   

  	
  Environmental Matters

  
	
  Schedule 3.18

  	
   

  	
  Insurance

  
	
  Schedule 3.19(a)

  	
   

  	
  Domestic Filing Offices

  
	
  Schedule 3.19(b)

  	
   

  	
  Other Filing Offices

  
	
  Schedule 3.19(c)

  	
   

  	
  Mortgage Filing Offices

  
	
  Schedule 3.20(a)

  	
   

  	
  Owned Property

  
	
  Schedule 3.20(b)

  	
   

  	
  Leased Property

  
	
  Schedule 3.21

  	
   

  	
  Certain Labor Matters

  
	
  Schedule 4.02(a)

  	
   

  	
  Other Local Counsel

  
	
  Schedule 6.01

  	
   

  	
  Outstanding Indebtedness on Closing Date

  
	
  Schedule 6.02

  	
   

  	
  Liens Existing on Closing Date

  
	
  Schedule 6.04

  	
   

  	
  Existing Investments

  

 

Exhibits

 

	
  EXHIBIT A

  	
   

  	
  Form of Administrative Questionnaire

  
	
  EXHIBIT B

  	
   

  	
  Form of Assignment and Acceptance

  
	
  EXHIBIT C

  	
   

  	
  Form of Borrowing Request

  
	
  EXHIBIT D

  	
   

  	
  Form of U.S. Guarantee and Collateral Agreement

  
	
  EXHIBIT E

  	
   

  	
  Form of European Guarantee Agreement

  
	
  EXHIBIT F-1

  	
   

  	
  Form of German Pledge Agreements

  
	
  EXHIBIT F-2

  	
   

  	
  Form of French Pledge Agreements

  
	
  EXHIBIT F-3

  	
   

  	
  Form of Luxembourg Pledge Agreements

  

 

iv

 

	
  EXHIBIT G

  	
   

  	
  Form of Perfection Certificate

  
	
  EXHIBIT H-1

  	
   

  	
  Form of Opinion of Mayer, Brown, Rowe & Maw LLP

  
	
  EXHIBIT H-2

  	
   

  	
  Form of Local Counsel Opinion

  
	
  EXHIBIT I

  	
   

  	
  Form of Minority Holder Acknowledgement, Consent and Waiver

  
	
  EXHIBIT J

  	
   

  	
  Form of Mortgage

  

 

v

 

CREDIT
AGREEMENT dated as of December 17, 2003, among SENSUS METERING SYSTEMS INC., a
Delaware corporation (the “U.S. Borrower”), SENSUS METERING SYSTEMS (LUXCO 2)
S.ÀR.L., à société a responsabilité limitée incorporated under Luxembourg law
(the “European Borrower”),
SENSUS METERING SYSTEMS (BERMUDA 2) LTD., a company organized under the laws of
Bermuda (“Holdings”),
the Lenders (as defined in Article I), CREDIT SUISSE FIRST BOSTON (“CSFB”), as
administrative agent for the Lenders (in such capacity, the “General Administrative Agent”)
and as collateral agent for the U.S. Lenders (as defined in Article I) (in such
capacity, the “U.S. Collateral Agent”),
and CSFB, as administrative agent for the European Lenders (as defined in
Article I) (in such capacity, the “European Administrative Agent”) and as collateral agent
for the European Lenders (in such capacity, the “European Collateral Agent”).

 

Pursuant to the Purchase Agreement (such term and each other
capitalized term used but not defined in this introductory statement having the
meaning given it in Article I), Holdings intends to acquire (the “Acquisition”),
directly or indirectly, the several subsidiaries of Invensys plc that comprise
and conduct its Invensys Metering Systems businesses (the “Acquired Business”) for an aggregate purchase
price of approximately $650,000,000 in cash (subject to adjustment as provided
in the Purchase Agreement, the “Acquisition Consideration”).  As part of the Acquisition, the U.S. Borrower will acquire all
the capital stock of BTR Dunlop Holdings (Delaware) Inc., a Delaware
corporation (“BTR”),
which is the holding company for the North American and South American
operations of the Acquired Business. 
Immediately following the consummation of the Acquisition, the U.S.
Borrower will merge with and into BTR, and BTR, as the surviving corporation in
such merger, shall be renamed Sensus Metering Systems Inc.  From and after the effective time of such
merger, all references herein and in the other Loan Documents to the term “U.S.
Borrower” shall be deemed to be references to such surviving corporation.

 

The Borrowers have requested that (a) the Term B-1 Lenders extend
credit in the form of Term B-1 Loans to the U.S. Borrower on the Closing Date,
in an aggregate principal amount not in excess of $200,000,000, (b) the
Term B-2 Lenders extend credit in the form of Term B-2 Loans to the European
Borrower on the Closing Date, in an aggregate principal amount not in excess of
$30,000,000, (c) at any time on or after the Closing Date and until the
earlier of the Revolving Credit Maturity Date and the termination of the applicable
Revolving Commitments, (i) the U.S. Revolving Lenders extend credit to the
U.S. Borrower in the form of U.S. Revolving Loans, in an aggregate principal
amount at any time outstanding not in excess of $40,000,000, and (ii) the
European Revolving Lenders extend credit to the European Borrower or the U.S.
Borrower in the form of European Revolving Loans, in an aggregate principal
amount at any time outstanding not in excess of $30,000,000, (d) the
Swingline Lender extend credit to the Borrowers in the form of Swingline Loans,
in an aggregate principal amount at any time outstanding not in excess of
$6,000,000, in the case of U.S. Swingline Loans, and $6,000,000, in the case of
European Swingline Loans, and (e) the Issuing Bank issue Letters of Credit
for the account of Holdings and its Subsidiaries in an aggregate face amount at
any time outstanding not

 

 

in excess of $20,000,000, in the case of U.S.
Letters of Credit, and $10,000,000, in the case of European Letters of
Credit.  The proceeds of the Term Loans
are to be used solely (a) to pay a portion of the Acquisition
Consideration and (b) to pay fees and expenses incurred in connection with
the Transactions in an aggregate amount not to exceed $37,500,000.  The proceeds of the Revolving Loans and the
Swingline Loans are to be used solely for general corporate purposes, including
to finance Permitted Acquisitions and purchase price adjustments in connection
with the Acquisition.  Letters of Credit
will be issued both in the form of documentary letters of credit to support
payment obligations incurred in the ordinary course of business by Holdings and
its Subsidiaries and in the form of standby letters of credit to be used for
other general corporate purposes.

 

The Lenders are willing to extend such credit to the Borrowers and the
Issuing Bank is willing to issue Letters of Credit for the account of Holdings
and the Subsidiaries, in each case on the terms and subject to the conditions
set forth herein.  Accordingly, the parties
hereto agree as follows:

 

ARTICLE I

 

Definitions

 

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

 

“ABR”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Alternate Base Rate.

 

“Acquired Business”
shall have the meaning assigned to such term in the preliminary statement.

 

“Acquisition”
shall have the meaning set forth in the preliminary statement.

 

“Acquisition
Consideration” shall have the meaning set forth in the
preliminary statement.

 

“Adjusted LIBO Rate”
shall mean, with respect to any Eurocurrency Borrowing for any Interest Period,
an interest rate per annum equal to the product of (a) the LIBO Rate in effect
for such Interest Period and (b) Statutory Reserves.

 

“Administrative Agent
Fees” shall have the meaning assigned to such term in
Section 2.05(b).

 

“Administrative Agents”
shall mean the General Administrative Agent and the European Administrative
Agent.

 

2

 

“Administrative
Questionnaire” shall mean an Administrative Questionnaire in the
form of Exhibit A, or such other form as may be supplied from time to time by
the General Administrative Agent.

 

“Affiliate”
shall mean, when used with respect to a specified person, another person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the person specified; provided,
however, that, for purposes of Section 6.07, the term “Affiliate” shall also include any person that
directly or indirectly owns 10% or more of any class of Equity Interests of the
person specified or that is an officer or director of the person specified.

 

“Agreement”
shall mean this Credit Agreement, as it may be amended, restated, supplemented
or otherwise modified from time to time.

 

“Alternate Base Rate”
shall mean, for any day, a rate per annum equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 1⁄2 of 1%.  If for
any reason the General Administrative Agent shall have determined (which
determination shall be conclusive absent manifest error) that it is unable to
ascertain the Federal Funds Effective Rate for any reason, including the
inability or failure of the General Administrative Agent to obtain sufficient
quotations in accordance with the terms of the definition thereof, the
Alternate Base Rate shall be determined without regard to clause (b) of the
preceding sentence until the circumstances giving rise to such inability no
longer exist.  Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective on the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.

 

“Applicable
Administrative Agent” shall mean (a) with respect to a Loan or
Borrowing denominated in Dollars or a U.S. Letter of Credit, and with respect to
any payment hereunder that does not relate to a particular Loan, Borrowing or
Class of Commitments, the General Administrative Agent, and (b) with respect to
a Loan or Borrowing denominated in a Designated Foreign Currency or a European
Letter of Credit, and with respect to any payment hereunder that relates only
to the European Revolving Commitments, the European Administrative Agent.

 

“Applicable Collateral
Agent” shall mean (a) with respect to any U.S. Collateral, the
U.S. Collateral Agent, and (b) with respect to any European Collateral, the
European Collateral Agent.

 

“Applicable Percentage”
shall mean, for any day, (a) with respect to any Eurocurrency Term Loan,
3.00%, (b) with respect to any ABR Term Loan, 2.00%, and (c) with
respect to any Eurocurrency Revolving Loan, ABR Revolving Loan, EBR Revolving
Loan or Swingline Loan, as the case may be, the applicable percentage set forth
below under the caption “Eurocurrency Spread—Revolving Loans”, “ABR/EBR
Spread—Revolving Loans” or “Swingline Loan Spread”, as the case may be, based
upon the Leverage Ratio as of the relevant date of determination:

 

3

 

	
  Leverage Ratio

  	
   

  	
  Eurocurrency

  Spread–

  Revolving

  Loans

  	
   

  	
  ABR/EBR

  Spread–

  Revolving

  Loans

  	
   

  	
  Swingline

  Loan Spread

  	
   

  
	
  Category 1

  

  Greater than or

  equal to 4.75 to

  1.00

  	
   

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  	
  2.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 2

  
Greater than or

  equal to 4.25 to

  1.00, but less than

  4.75 to 1.00

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  	
  1.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 3

  
Greater than or

  equal to 3.75 to

  1.00, but less than

  4.25 to 1.00

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  	
  1.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 4

  
Greater than or

  equal to 3.25 to

  1.00, but less than

  3.75 to 1.00

  	
   

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  	
  1.25

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Category 5

  
Less than 3.25 to

  1.00

  	
   

  	
  1.50

  	
  %

  	
  0.50

  	
  %

  	
  1.00

  	
  %

  

 

Each change in the Applicable Percentage resulting from a change in the
Leverage Ratio shall be effective with respect to all Loans and Letters of
Credit outstanding on and after the date of delivery to the General
Administrative Agent of the financial statements and certificates required by Section 5.04(a)
or (b) and Section 5.04(d), respectively, indicating such change, and
until the date immediately preceding the next date of delivery of such
financial statements and certificates indicating another such change.  Notwithstanding the foregoing, until the
Borrower shall have delivered the financial statements and certificates
required by Section 5.04(a) and Section 5.04(d), respectively, for
the fiscal period ending on March 31, 2004, the Leverage Ratio shall be deemed
to be in Category 1 for purposes of determining the Applicable Percentage. If
Holdings shall have failed to deliver the financial statements and certificates
required by Section 5.04(a) or (b) and Section 5.04(d), respectively,
in respect of any period, then, until the earlier to occur of the delivery of
such statements and certificates or the occurrence of an Event

 

4

 

of Default, the Leverage Ratio shall be
deemed to be in the same Category as it was during the prior period; provided,
however,
that, if such statements and certificates when delivered indicate that the
Leverage Ratio should have been adjusted to a lower Category (i.e.,
a higher spread), then the applicable Borrower shall, on the next Interest
Payment Date with respect to each Loan or date on which L/C Participation Fees
are payable, as the case may be, pay to the Lenders, through the Applicable
Administrative Agent, the additional interest and L/C Participation Fees that
would have accrued on or in respect of outstanding Loans and Letters of Credit
during such interim period.  The
calculation of such additional interest and L/C Participation Fees shall be
made by the General Administrative Agent and shall be conclusive absent manifest
error.  In addition, at any time after
the occurrence and during the continuance of an Event of Default, the Leverage
Ratio shall be deemed to be in Category 1 for purposes of determining the
Applicable Percentage.

 

“Asset Sale”
shall mean the sale, transfer or other disposition (by way of merger,
amalgamation, casualty, condemnation or otherwise) by Holdings or any
Subsidiary to any person other than a Borrower or a Subsidiary Guarantor of (a)
any Equity Interests of any Subsidiary (other than directors’ qualifying shares
and excluding a primary issuance of Equity Interests by such Subsidiary) or (b)
any other assets of Holdings or any Subsidiary (other than (i) inventory,
damaged, obsolete or worn out equipment or other assets, scrap and cash and
Permitted Investments, in each case disposed of in the ordinary course of
business, (ii) the creation of a Lien (but not the sale, transfer or other
disposition of the property subject to such Lien), (iii) the good faith
surrender or waiver of contract rights, tort claims or statutory rights, (iv) grants
of non-exclusive licenses or sublicenses to use the patents, copyrights and
other intellectual property of Holdings or any Subsidiary, (v) the
transfer of Receivables pursuant to the Receivables Program, or
(vi) dispositions between or among Subsidiaries that are not Loan
Parties); provided, however,
that any asset sale or series of related asset sales described in clause (b)
above having a value not in excess of $1,000,000, shall be deemed not to be an
“Asset Sale” for purposes of this Agreement.

 

“Assignment and
Acceptance” shall mean an assignment and acceptance entered into
by a Lender and an assignee, and accepted by the General Administrative Agent,
in the form of Exhibit B or such other form as shall be approved by the General
Administrative Agent with notice thereof to the Borrowers.

 

“Board”
shall mean the Board of Governors of the Federal Reserve System of the United
States of America.

 

“Borrowers”
shall mean the U.S. Borrower and the European Borrower.

 

“Borrowing”
shall mean (a) Loans of the same Class, Type and Currency made, converted
or continued on the same date and, in the case of Eurocurrency Loans, as to
which a single Interest Period is in effect, or (b) a Swingline Loan.

 

“Borrowing Minimum”
shall mean (a) with respect to a Borrowing denominated in Dollars, $1,000,000,
(b) with respect to a Borrowing denominated in Euro, €1,000,000, and
(c) with respect to a Borrowing denominated in Sterling, ₤1,000,000.

 

5

 

“Borrowing Multiple”
shall mean (a) with respect to a Borrowing denominated in Dollars, $500,000,
(b) with respect to a Borrowing denominated in Euro, €500,000, and
(c) with respect to a Borrowing denominated in Sterling, ₤500,000.

 

“Borrowing Request”
shall mean a request by a Borrower in accordance with the terms of
Section 2.03 and substantially in the form of Exhibit C, or such
other form as shall be approved by the General Administrative Agent and the
relevant Borrower.

 

“Business Day”
shall mean any day other than a Saturday, Sunday or day on which banks in New
York City are authorized or required by law to close; provided, however,
that when used in connection with a Eurocurrency Loan or in connection with a
Loan denominated in a Designated Foreign Currency, the term “Business Day” shall
also exclude any day on which banks are not open for dealings in Dollar
deposits (or in deposits of the applicable Designated Foreign Currency) in the
London interbank market; provided  further, that when used in
connection with a Loan denominated in Euro, the term “Business Day” shall also exclude any day on
which the Trans-European Automated Real Time Gross Settlement Express Transfer
(TARGET) payment system is not open for the settlement of payments in Euro.

 

“Calculation Date”
shall mean (a) the date of delivery of each Borrowing Request with respect
to the European Revolving Commitments or the European Swingline Commitment,
(b) the date of issuance, extension or renewal of any European Letter of
Credit, (c) the date of conversion or continuation of any European
Revolving Borrowing pursuant to Section 2.10, (d) the last Business
Day of each calendar quarter and (e) each other date occurring no earlier
than 30 days after the last Calculation Date on which the Exchange Rate is
calculated at the General Administrative Agent’s discretion.

 

“CAM”
shall mean the mechanism for the allocation and exchange of interests in the
Loans and other extensions of credit under the several Classes and collections
thereunder established under Section 9.16.

 

“CAM Exchange”
shall mean the exchange of the Lender’s interests provided for in
Section 9.16.

 

“CAM Exchange Date”
shall mean the date on which either (a) any event referred to in
paragraph (g) or (h) of Article VII shall occur in respect of Holdings or
either Borrower or (b) the Loans shall have been declared immediately due and
payable pursuant to Article VII.

 

“CAM Percentage”
shall mean, as to each Lender, a fraction, expressed as a decimal, of which
(a) the numerator shall be the aggregate Dollar Equivalent (determined on
the basis of Exchange Rates prevailing on the CAM Exchange Date) of the
Designated Obligations owed to such Lender (whether or not at the time due and
payable) immediately prior to the CAM Exchange Date and (b) the
denominator shall be the aggregate Dollar Equivalent (as so determined) of the
Designated Obligations owed to all the Lenders (whether or not at the time due
and payable) immediately prior to such CAM Exchange Date.

 

“Capital Expenditures”
shall mean, for any period, the additions to property, plant and equipment and
other capital expenditures of Holdings and its consolidated Subsidiaries that
are (or should be) set forth in a consolidated statement of cash flows of
Holdings and its

 

6

 

consolidated Subsidiaries for such period
prepared in accordance with GAAP, but excluding in each case (a) any such
expenditure made in accordance with the terms of this Agreement (i) to
restore, replace or rebuild property to the condition of such property
immediately prior to any damage, loss, destruction or condemnation of such
property, to the extent such expenditure is made with insurance proceeds,
condemnation awards or damage recovery proceeds relating to any such damage,
loss, destruction or condemnation, (ii) with the proceeds of the sale or other
disposition of any assets or (iii) as the purchase price of any Permitted
Acquisition or any investment in Equity Interests permitted by Section 6.04,
and (b) any such expenditure to the extent resulting from the trade-in of
equipment or other assets.  For purposes
of determining the Fixed Charge Coverage Ratio for the periods ended on
March 31, 2004, June 30, 2004, and September 30, 2004, Capital
Expenditures will be deemed to be equal to (i) for the fiscal quarter
ended June 30, 2003, $2,800,000, (ii) for the fiscal quarter ended
September 30, 2003, $2,800,000, and (iii) for the fiscal quarter
ended December 31, 2003, $4,000,000.

 

“Capital Lease
Obligations” of any person shall mean the obligations of such
person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination
thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in
accordance with GAAP.

 

A “Change in Control”
shall mean any of the following events:

 

(a)  prior to the initial Public
Equity Offering, the Sponsors and their respective Affiliates shall fail to
own, directly or indirectly, beneficially and of record, and have the right to
vote Equity Interests in Holdings representing at least a majority of the
aggregate ordinary voting power represented by the issued and outstanding
Equity Interests of Holdings;

 

(b)  after the initial Public
Equity Offering, any “person” or “group” (within the meaning of the Securities
Exchange Act of 1934 and the rules of the Securities and Exchange Commission
thereunder as in effect on the date hereof) other than the Permitted Investors
becomes, directly or indirectly, the beneficial owner of Equity Interests in
Holdings representing more than 35% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of Holdings;

 

(c)  at any time during any
consecutive two-year period, individuals who at the beginning of such period
constituted the board of directors of Holdings (together with any new directors
whose election or appointment by the board of directors of Holdings or whose
nomination for election by the shareholders of Holdings was approved by a vote
of a majority of the directors of Holdings then still in office who were either
directors at the beginning of such period or whose election, appointment or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the board of directors of Holdings then in office;

 

(d)  the occurrence of any
change in control or similar event (however denominated) with respect to
Holdings or the U.S. Borrower under and as defined in any indenture or
agreement in respect of Material Indebtedness to which Holdings, the U.S.
Borrower or a Subsidiary is a party; or

 

7

 

(e)  Holdings shall cease to
directly own, beneficially and of record, 100% of the issued and outstanding
Equity Interests of the U.S. Borrower.

 

“Change in Law”
shall mean (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the
interpretation or application thereof by any Governmental Authority after the
date of this Agreement or (c) compliance by any Lender or the Issuing Bank
(or, for purposes of Section 2.14, by any lending office of such Lender or
by such Lender’s or Issuing Bank’s holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Term B-1 Loans, Term B-2 Loans,
Other Term Loans, U.S. Swingline Loans, European Swingline Loans, U.S.
Revolving Loans or European Revolving Loans and, when used in reference to any
Commitment, refers to whether such Commitment is a Term B-1 Commitment, Term
B-2 Commitment, Incremental Term Commitment, U.S. Revolving Commitment,
European Revolving Commitment, U.S. Swingline Commitment or European Swingline
Commitment.

 

“Closing Date”
shall mean December 17, 2003.

 

“Code”
shall mean the U.S. Internal Revenue Code of 1986, as amended from time to
time.

 

“Collateral”
shall mean the U.S. Collateral and the European Collateral.

 

“Collateral Agents”
shall mean the U.S. Collateral Agent and the European Collateral Agent.

 

“Commitment”
shall mean, with respect to any Lender, such Lender’s Revolving Commitments,
Term Loan Commitments and/or Swingline Commitments.

 

“Confidential
Information Memorandum” shall mean the Confidential Information
Memorandum of Holdings dated November 2003.

 

“Consolidated EBITDA”
shall mean, for any period, Consolidated Net Income for such period plus (a)
without duplication and to the extent deducted in determining such Consolidated
Net Income, the sum of (i) Consolidated Interest Expense and any non-cash
interest expense and letter of credit issuance costs for such period,
(ii) consolidated income tax expense for such period (and, without
duplication, in respect of repatriations of income and Tax Distributions made
during such period), (iii) all amounts attributable to depreciation and
amortization for such period (including any increased expense or depreciation
or amortization charges resulting from purchase accounting adjustments or
inventory write-ups with respect to acquisitions and amortization charges or
write-offs of deferred financing costs and debt issuance costs), (iv) any
non-recurring non-capitalized costs in connection with financings, acquisitions,
dispositions or the establishment of joint ventures, strategic alliances or
similar arrangements during such period (including financing and refinancing
fees and any premium or penalty paid in connection with redeeming or retiring
Indebtedness prior to its stated maturity pursuant to the to agreements or

 

8

 

instruments governing such Indebtedness), (v)
Systems/Organizational Establishment Expenses and other non-recurring
restructuring, start-up and other similar costs (including expenses in
connection with Incentive Arrangements of the type described in clause (e) of
the definition thereof) in connection with the Acquisition and paid or
otherwise accounted for within 24 months of the consummation of the Acquisition,
in an aggregate amount not in excess of $15,000,000, (vi)
Systems/Organizational Establishment Expenses and other non-recurring
restructuring, start-up and other similar costs (including expenses in
connection with Incentive Arrangements of the type described in clause (e)
of the definition thereof) in connection with Permitted Acquisitions
consummated after the Closing Date in an aggregate amount not in excess of
$5,000,000 in any fiscal year of Holdings, (vii) non-recurring expenses in
connection with Incentive Arrangements of a type described in clauses (a)
through (d) of the definition thereof in connection with the Acquisition or
Permitted Acquisitions consummated after the Closing Date, (viii) amounts
paid or accrued under the Management Consulting Agreement during such period
and (ix) any other non-cash charges (other than the writedown of accounts
receivable or inventory held for sale (other than in connection with the
Acquisition or any Permitted Acquisition)) for such period, and minus (b) without
duplication (i) to the extent not deducted in determining such
Consolidated Net Income, all cash payments made during such period on account
of reserves and other non-cash charges added to Consolidated Net Income after
the date hereof pursuant to clause (a)(ix) above in a previous period and
(ii) to the extent included in determining such Consolidated Net Income,
all non-cash items of income for such period, all determined on a consolidated
basis in accordance with GAAP.  For
purposes of determining the Fixed Charge Coverage Ratio, the Interest Coverage
Ratio and the Leverage Ratio as of or for the periods ended on March 31,
2004, June 30, 2004 and September 30, 2004, Consolidated EBITDA will be deemed
to be equal to (i) for the fiscal quarter ended June 30, 2003,
$20,300,000, (ii) for the fiscal quarter ended September 30, 2003,
$27,900,000 and (iii) for the fiscal quarter ended December 31, 2003,
$20,500,000.

 

“Consolidated Fixed
Charges” shall mean, for any period, without duplication, the
sum of (a) Consolidated Interest Expense for such period, (b) the aggregate
amount of scheduled principal payments made during such period in respect of
long term Indebtedness of Holdings and the Subsidiaries (other than payments
made by Holdings or any Subsidiary to Holdings or a Subsidiary), (c) the
aggregate amount of principal payments (other than scheduled principal
payments) made during such period in respect of long term Indebtedness of
Holdings and the Subsidiaries, to the extent that such payments reduced any scheduled
principal payments that would have become due during such period, (d) Capital
Expenditures for such period (other than in connection with restructuring and
start-up costs relating to the Acquisition or any Permitted Acquisition and
capitalized fees and expenses), (e) the aggregate amount of Taxes paid in cash
by Holdings and the Subsidiaries during such period and (f) the aggregate
amount of Restricted Payments made by Holdings and the Subsidiaries during such
period in respect of taxes or Tax Distributions.  For purposes of determining the Fixed Charge Coverage Ratio for
the period of four consecutive quarters ended March 31, 2004,
June 30, 2004 and September 30, 2004, Consolidated Fixed Charges (other
than Capital Expenditures, which shall be calculated as provided in the
definition of such term) shall be deemed to be equal to (a) the Consolidated
Fixed Charges for the fiscal quarter ended March 31, 2004, multiplied by
4, (b) the Consolidated Fixed Charges for the two consecutive fiscal quarters
ended June 30, 2004, multiplied by 2 and (c) the Consolidated Fixed
Charges for the three consecutive fiscal quarters ended September 30,
2004, multiplied by 4/3, respectively.

 

9

 

“Consolidated Interest
Expense” shall mean, for any period, the sum of (a) the
cash interest expense (including imputed interest expense in respect of Capital
Lease Obligations and Synthetic Lease Obligations) of Holdings and the
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP and (b) the aggregate amount of all dividends in respect of
Disqualified Capital Stock paid in cash by Holdings and the Subsidiaries during
such period.  For purposes of the foregoing,
interest expense shall be determined after giving effect to any net payments
made or received by Holdings or any Subsidiary with respect to interest rate
Hedging Agreements.  For purposes of
determining the Interest Coverage Ratio for the period of four consecutive
quarters ended March 31, 2004, June 30, 2004 and September 30, 2004,
Consolidated Interest Expense shall be deemed to be equal to (a) the
Consolidated Interest Expense for the fiscal quarter ended March 31, 2004,
multiplied by 4, (b) the Consolidated Interest Expense for the two consecutive
fiscal quarters ended June 30, 2004, multiplied by 2 and (c) the
Consolidated Interest Expense for the three consecutive fiscal quarters ended
September 30, 2004, multiplied by 4/3, respectively.

 

“Consolidated Net
Income” shall mean, for any period, the net income or loss of
Holdings and the Subsidiaries for such period determined on a consolidated
basis in accordance with GAAP (adjusted to reflect any charge, tax or expense
incurred or accrued by an Ultimate Parent during such period as though such
charge, tax or expense had been incurred by Holdings, to the extent that
Holdings has made any payment to or for the account of such Ultimate Parent in
respect thereof); provided, however, that there shall be excluded (a)
the income of any Subsidiary (other than a Loan Party party to the U.S.
Guarantee and Collateral Agreement) to the extent that the declaration or
payment of dividends or similar distributions by the Subsidiary of that income
is not at the time permitted by operation of the terms of its charter or any
agreement, instrument, judgment or decree applicable to such Subsidiary, except
to the extent cash equal to such income (or a portion thereof) for such period
is actually distributed by such Subsidiary in cash to such a Loan Party or is readily
procurable by such a Loan Party from such Subsidiary pursuant to an
intercompany loan, a repurchase of Equity Interests or otherwise, (b) any
gains or losses attributable to sales of assets out of the ordinary course of
business and any extraordinary gains or losses and (c) the cumulative effect of
any change in accounting principles.

 

“Control”
shall mean 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 ownership of voting securities, by contract or otherwise, and the terms “Controlling” and “Controlled” shall
have meanings correlative thereto.

 

“Credit Event”
shall have the meaning assigned to such term in Section 4.01.

 

“CSFB”
shall have the meaning set forth in the preamble.

 

“Currency”
shall mean Dollars or any Designated Foreign Currency.

 

“Current Assets”
shall mean, at any time, the consolidated current assets (other than cash and
Permitted Investments) of Holdings and the Subsidiaries.

 

“Current Liabilities”
shall mean, at any time, the consolidated current liabilities of Holdings and
the Subsidiaries at such time, but excluding, without duplication, (a) the
current

 

10

 

portion of any long-term Indebtedness and (b)
outstanding Revolving Loans, Swingline Loans and other revolving Indebtedness.

 

“Default”
shall mean any event or condition which upon notice, lapse of time or both
would constitute an Event of Default.

 

“Defaulting Lender”
shall mean any Revolving Lender that has (a) defaulted in its obligation
to make a Revolving Loan or to fund its participation in a Letter of Credit or
Swingline Loan required to be made or funded by it hereunder, (b) notified an
Administrative Agent or a Loan Party in writing that it does not intend to
satisfy any such obligation or (c) become insolvent or has been taken over
by any regulatory authority or agency.

 

“Designated Foreign
Currencies” shall mean Sterling and Euro.

 

“Designated Obligations”
shall mean all obligations of the Loan Parties with respect to (a) principal of
and interest on the Loans of each Class, (b) unreimbursed L/C Disbursements and
interest thereon and (c) all Facility Fees and L/C Participation Fees with
respect thereto.

 

“Disqualified Capital Stock”
shall mean any Equity Interest which, by its terms (or by the terms of any
security into which it is convertible or for which it is exchangeable), or upon
the happening of any event, (a) matures (excluding any maturity as the
result of an optional redemption by the issuer thereof) or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is
redeemable at the option of the holder thereof, in whole or in part, or
requires the payment of any cash dividend or any other scheduled payment
constituting a return of capital, in each case at any time on or prior to the
first anniversary of the Term Loan Maturity Date and in each case except to the
extent that payment thereof may be made solely with Equity Interests that are
not themselves Disqualified Capital Stock, or (b) is convertible into or
exchangeable (unless at the sole option of the issuer thereof) for
(i) debt securities or (ii) any Equity Interest referred to in
(a) above at any time on or prior to the first anniversary of the Term
Loan Maturity Date.

 

“Dollar Equivalent”
shall mean, on any date of determination, with respect to any amount
denominated in any Currency other than Dollars, the equivalent in Dollars of
such amount, determined by the General Administrative Agent pursuant to Section
1.05 using the applicable Exchange Rate with respect to such Currency at the
time in effect.

 

“Dollars”
or “$” shall mean lawful
money of the United States of America.

 

“Domestic Subsidiaries”
shall mean all Subsidiaries incorporated or organized under the laws of the
United States of America, any State thereof or the District of Columbia; provided
that the term “Domestic Subsidiary”
shall not include any such person whose only assets (other than insignificant
assets) consist of Equity Interests of a person that is not organized under the
laws of the United States of America, any State thereof or the District of
Columbia.

 

“EBR”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the European Base Rate.  Notwithstanding anything to the contrary contained herein, Loans
may

 

11

 

be made or maintained as EBR Revolving Loans
only to the extent specified in Section 2.08, 2.10(vii) or 2.15.

 

“Environmental Laws”
shall mean all former, current and future Federal, state, local and foreign
laws (including common law), treaties, regulations, rules, ordinances, codes,
decrees, judgments, directives, orders (including consent orders), and
agreements in each case, relating to protection of the environment, natural
resources, human health and safety or the presence, Release of, or exposure to,
Hazardous Materials, or the generation, manufacture, processing, distribution,
use, treatment, storage, transport, recycling or handling of, or the
arrangement for such activities with respect to, Hazardous Materials.

 

“Environmental
Liability” shall mean all liabilities, obligations, damages, losses,
claims, actions, suits, judgments, orders, fines, penalties, fees, expenses and
costs (including administrative oversight costs, natural resource damages and
remediation costs), whether contingent or otherwise, arising out of or relating
to (a) compliance or non-compliance with any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of
any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
Release of any Hazardous Materials or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing.

 

“Equity Interests”
shall mean shares, shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or
other equity interests in any person.

 

“Equity Issuance”
shall mean any issuance or sale by Holdings or any Subsidiary of any Equity
Interests (other than Disqualified Capital Stock) of Holdings or any
Subsidiary, as applicable, except in each case for (a) any issuance of
Equity Interests by Holdings, the Net Cash Proceeds of which are contributed as
common equity to a Borrower to fund all or a portion of the purchase price of a
Permitted Acquisition, (b) any issuance or sale to any Permitted Investor
(other than any such person acting in the capacity of an underwriter or
placement agent with regard to such Equity Issuance), Holdings or any
Subsidiary, (c) any issuance of directors’ qualifying shares and
(d) sales or issuances of common or ordinary shares of Holdings to
management, employees, directors or consultants of Holdings or any Subsidiary.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as the same may
be amended from time to time.

 

“ERISA Affiliate”
shall mean any trade or business (whether or not incorporated) that, together
with Holdings or any Subsidiary, is treated as a single employer under
Section 414(b) or (c) of the Code, or solely for purposes of
Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.

 

“ERISA Event”
shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA
or the regulations issued thereunder, with respect to a Plan (other than an
event for which the 30-day notice period is waived); (b) the existence with
respect to any Plan of an “accumulated funding deficiency” (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(d) of the Code or

 

12

 

Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by Holdings or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan
or the withdrawal or partial withdrawal of Holdings or any of its ERISA
Affiliates from any Plan or Multiemployer Plan; (e) the receipt by Holdings or
any of its ERISA Affiliates from the PBGC or a plan administrator of any notice
relating to the intention to terminate any Plan or Plans or to appoint a
trustee to administer any Plan; (f) the adoption of any amendment to a Plan
that would require the provision of security pursuant to
Section 401(a)(29) of the Code or Section 307 of ERISA; (g) the
receipt by Holdings or any of its ERISA Affiliates of any notice, or the
receipt by any Multiemployer Plan from Holdings or any of its ERISA Affiliates
of any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA; (h) the occurrence
of a “prohibited transaction” with respect to which Holdings or any of the
Subsidiaries is a “disqualified person” (within the meaning of
Section 4975 of the Code) or with respect to which Holdings or any such
Subsidiary could otherwise be liable; or (i) any Foreign Benefit Event.

 

“Euro”
or “€” shall mean the
single currency of the European Union as constituted by the Treaty on European
Union and as referred to in the legislative measures of the European Union for
the introduction of, changeover to or operation of the Euro in one or more
member states.

 

“Eurocurrency”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Adjusted LIBO Rate.

 

“European
Administrative Agent” shall mean CSFB, acting through any of its
affiliates or branches, as administrative agent for the European Lenders under
this Agreement, and any successor thereto appointed pursuant to Article VIII.

 

“European Base Rate”
shall mean, for any day with respect to any Designated Foreign Currency, the
rate of interest determined by the European Administrative Agent and notified
to the European Borrower to be its prime rate for daily rate loans in the
applicable Designated Foreign Currency. 
The European Base Rate is intended to be a “lending” rate and not a
“funding” rate, and may not be the lowest rate then available to other
customers of the European Administrative Agent for loans in such Designated
Foreign Currency.  The determination by
the European Administrative Agent of the European Base Rate shall be
conclusive.

 

“European Borrower”
shall have the meaning set forth in the preamble.

 

“European Collateral”
shall mean all the (i) “Collateral” as defined in the French Pledge Agreements
and the Luxembourg Pledge Agreements and (ii) “Shares” or “Interests” as
defined in the German Pledge Agreements.

 

“European Collateral
Agent” shall mean CSFB, acting through any of its affiliates or
branches, as collateral agent for the European Lenders under this Agreement and
the European Security Documents, and any successor thereto pursuant to Article
VIII.

 

13

 

“European Guarantee
Agreement” shall mean the European Guarantee Agreement,
substantially in the form of Exhibit E, among the European Borrower, Sensus
Metering Systems (Bermuda 3) Ltd., a company organized under the laws of
Bermuda, Sensus Metering Systems (LuxCo 1) s.àr.l., à société a responsabilité
limitée incorporated under Luxembourg law, the Subsidiaries of the European Borrower
party thereto and the European Collateral Agent for the benefit of the European
Secured Parties.

 

“European L/C
Disbursement” shall mean a payment or disbursement made by an
Issuing Bank pursuant to a European Letter of Credit.

 

“European L/C Exposure”
shall mean at any time the sum of (a) the aggregate undrawn amount of all
outstanding European Letters of Credit denominated in Dollars at such time,
(b) the Dollar Equivalent of the aggregate undrawn amount of all
outstanding European Letters of Credit denominated in a Designated Foreign
Currency at such time, (c) the aggregate principal amount of all European
L/C Disbursements denominated in Dollars that have not yet been reimbursed at
such time and (d) the Dollar Equivalent of the aggregate principal amount
of all European L/C Disbursements denominated in a Designated Foreign Currency
that have not yet been reimbursed at such time.  The European L/C Exposure of any European Revolving Lender at any
time shall equal its European Pro Rata Percentage of the aggregate European L/C
Exposure at such time.

 

“European Lenders”
shall mean the Term B-2 Lenders and the European Revolving Lenders.

 

“European Letter of
Credit” shall mean any letter of credit issued by an Issuing
Bank pursuant to Section 2.23 at the request of the European Borrower for
the account of Holdings or any Subsidiary. 
A European Letter of Credit may be denominated in Dollars or a
Designated Foreign Currency.

 

“European Obligations”
shall mean all obligations defined as “European Obligations” in the European
Guarantee Agreement and the other European Security Documents.

 

“European Pledge
Agreements” shall mean the German Pledge Agreements, the French
Pledge Agreements and the Luxembourg Pledge Agreements.

 

“European Pledged
Collateral” shall mean the Equity Interests and intercompany
notes (and the proceeds thereof) pledged by the Loan Parties to the European
Collateral Agent under the European Pledge Agreements, for the ratable benefit
of the European Secured Parties, to secure the European Obligations.

 

“European Pro Rata
Percentage” shall mean, with respect to any European Revolving
Lender at any time, the percentage of the aggregate amount of European
Revolving Commitments as in effect at such time represented by such European
Lender’s European Revolving Commitment. 
In the event that the European Revolving Commitments shall have expired
or have terminated, the European Pro Rata Percentages shall be determined on
the basis of the European Revolving Commitments most recently in effect.

 

14

 

“European Revolving
Borrowing” shall mean a Borrowing comprised of European
Revolving Loans.

 

“European Revolving
Commitment” shall mean, with respect to each European Revolving
Lender, its commitment set forth on Schedule 2.01 (or in the Assignment
and Acceptance pursuant to which it shall have assumed its European Revolving
Commitment) to make European Revolving Loans to either Borrower, as the same
may be (a) reduced from time to time pursuant to Section 2.09, (b)
increased from time to time pursuant to Section 2.25 or (c) reduced
or increased from time to time pursuant to assignments by or to such European
Lender pursuant to Section 9.04. 
The aggregate amount of the European Revolving Commitments on the Closing
Date is $30,000,000.

 

“European Revolving
Exposure” shall mean, with respect to any European Revolving
Lender at any time, the sum of (a) the aggregate principal amount of all
European Revolving Loans of such Lender denominated in Dollars, (b) the Dollar
Equivalent of the principal amounts of such Lender’s European Revolving Loans
denominated in Designated Foreign Currencies, (c) the aggregate amount at
such time of such Lender’s European Swingline Exposure and (d) the
aggregate amount at such time of such Lender’s European L/C Exposure.

 

“European Revolving
Lender” shall mean a Lender with a European Revolving Commitment
and/or an outstanding European Revolving Loan.

 

“European Revolving
Loans” shall mean revolving loans made by the European Revolving
Lenders to either Borrower pursuant to clause (iv) of
Section 2.01(a).  European
Revolving Loans may be denominated in Dollars or a Designated Foreign Currency.

 

“European Secured
Parties” shall have the meaning assigned to the term “European
Secured Parties” in the European Guarantee Agreement.

 

“European Security
Documents” shall mean the European Guarantee Agreement, the
European Pledge Agreements and each of the pledge agreements and documents
executed and delivered pursuant to any of the foregoing or pursuant to Section
5.09 and that secure only the European Obligations.

 

“European Swingline
Commitment” shall mean the commitment of the Swingline Lender to
make European Swingline Loans pursuant to Section 2.22, as such commitment
may be reduced from time to time pursuant to Section 2.09 or Section
2.22.  The amount of the European
Swingline Commitment on the Closing Date is $6,000,000.

 

“European Swingline
Exposure” shall mean, at any time, the sum of (a) the aggregate
principal amount of all European Swingline Loans denominated in Dollars
outstanding at such time and (b) the Dollar Equivalent of the aggregate
principal amount of all European Swingline Loans denominated in a Designated
Foreign Currency outstanding at such time. 
The European Swingline Exposure of any European Revolving Lender at any
time shall equal its European Pro Rata Percentage of the aggregate European
Swingline Exposures at such time.

 

“European Swingline
Loan” shall have the meaning assigned to such term in
Section 2.22(a).

 

15

 

“Event of Default”
shall have the meaning assigned to such term in Article VII.

 

“Excess Cash Flow”
shall mean, for any fiscal year of Holdings, the excess of (a) the sum, without
duplication, of (i) Consolidated EBITDA for such fiscal year and (ii)
reductions to noncash working capital of Holdings and the Subsidiaries for such
fiscal year (i.e., the decrease, if any, in Current Assets minus Current
Liabilities from the beginning to the end of such fiscal year) over (b) the
sum, without duplication, of (i) the amount of any Taxes payable in cash by
Holdings and the Subsidiaries with respect to such fiscal year (and, without
duplication, all Tax Distributions made during such period),
(ii) Consolidated Interest Expense for such fiscal year,
(iii) Capital Expenditures made in cash during such fiscal year, and cash
expenditures to fund Permitted Acquisitions and other investments permitted
under Section 6.04 during such fiscal year, in each case except to the extent
financed with the proceeds of Indebtedness, equity issuances or other proceeds
that would not be included in Consolidated EBITDA, (iv) repayments of
Indebtedness (other than mandatory prepayments of Loans under
Section 2.13) made by Holdings and the Subsidiaries during such fiscal
year, but only to the extent that such prepayments by their terms cannot be
reborrowed or redrawn (at the time a prepayment with respect to Excess Cash
Flow is required hereunder) and do not occur in connection with a refinancing
of all or any portion of such Indebtedness, (v) cash payments in respect of
long-term liabilities (other than Indebtedness) made during such fiscal year,
(vi) Restricted Payments permitted under Section 6.06 and made in cash
during such fiscal year, (vii) cash expenditures made during such fiscal
year in respect of accruals and reserves in effect as of the Closing Date,
(viii) other cash expenditures during such fiscal year that were added
back in determining Consolidated EBITDA pursuant to the definition of the term
“Consolidated EBITDA”, (ix) cash payments made by Holdings and the Subsidiaries
during such fiscal year as a purchase price adjustment pursuant to the Purchase
Agreement and (x) additions to noncash working capital for such fiscal
year (i.e.,
the increase, if any, in Current Assets minus Current Liabilities from the
beginning to the end of such fiscal year).

 

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

 

“Excluded Taxes”
shall mean, with respect to either Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account
of any obligation of either Borrower or any other Loan Party hereunder, (a)
income or franchise taxes

 

16

 

imposed on (or measured by) its net income by
the jurisdiction under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender or the
Issuing Bank, in which its applicable lending office is located, (b) any branch
profits or similar taxes imposed by any jurisdiction described in clause (a)
above and (c) (i) any withholding tax that is attributable to such Foreign
Lender’s failure to comply with Section 2.20(e) or (ii) in the case
of a Foreign Lender (other than an assignee pursuant to a request by a Borrower
under Section 2.21(a)), any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
to this Agreement (or designates a new lending office), 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 either Borrower or any other Loan Party with respect to such
withholding tax pursuant to Section 2.20(a).

 

“Facility Fee”
shall have the meaning assigned to such term in Section 2.05(a).

 

“Federal Funds
Effective Rate” shall mean, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for the day for such
transactions received by the General Administrative Agent from three Federal
funds brokers of recognized standing selected by it.

 

“Fee Letter”
shall mean the Fee Letter dated October 21, 2003, among IMS Meters Holdings,
Inc., a Delaware corporation, the General Administrative Agent and Goldman
Sachs Credit Partners L.P.

 

“Fees”
shall mean the Facility Fees, the Administrative Agent Fees, the L/C
Participation Fees and the Issuing Bank Fees.

 

“Financial Officer”
of any person shall mean the chief financial officer, principal accounting
officer, treasurer or controller of such person.

 

“Fixed Charge Coverage
Ratio” shall mean, for any period, the ratio of (a) Consolidated
EBITDA for such period to (b) Consolidated Fixed Charges for such period.

 

“Foreign Benefit Event”
shall mean, with respect to any Foreign Pension Plan, (a) the existence of
unfunded liabilities in excess of the amount permitted under any applicable
law, or in excess of the amount that would be permitted absent a waiver from a
Governmental Authority, (b) the failure to make the required contributions
or payments under any applicable law on or before the due date for such
contributions or payments, (c) the receipt of a notice by a Governmental
Authority relating to the intention to terminate any such Foreign Pension Plan
or to appoint a trustee or similar official to administer any such Foreign
Pension Plan, or alleging the insolvency of any such Foreign Pension Plan,
(d) the incurrence of any liability in excess of $10,000,000 by Holdings
or any of its Subsidiaries under applicable law on account of the complete or
partial termination of such Foreign Pension Plan or the complete or partial

 

17

 

withdrawal of any participating employer
therein or (e) the occurrence of any transaction that is prohibited under
any applicable law and could reasonably be expected to result in the incurrence
of any liability by Holdings or any of its Subsidiaries, or the imposition on
Holdings or any of its Subsidiaries of any fine, excise tax or penalty
resulting from any noncompliance with any applicable law, in each case in excess
of $10,000,000.

 

“Foreign Lender”
shall mean, as to either Borrower, any Lender that is organized under the laws
of a jurisdiction other than that in which such Borrower is located. For
purposes of this definition, the United States of America, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction.

 

“Foreign Pension Plan”
shall mean any benefit plan that under applicable law is required to be funded
through a trust or other funding vehicle other than a trust or funding vehicle
maintained exclusively by a Governmental Authority.

 

“Foreign Subsidiary”
shall mean any Subsidiary that is not a Domestic Subsidiary.

 

“French Pledge
Agreements” shall mean the collective reference to (a) the
Pledge Agreement (relating to shares of Sensus Metering Systems France
Holdings) among Sensus Metering Systems (LuxCo 3) s.àr.l., the European
Collateral Agent and the other European Secured Parties, (b) the Pledge
Agreement (relating to shares of Financiére Pollux) among Sensus Metering
Systems France Holdings, the European Collateral Agent and the other European
Secured Parties, and (c) the Pledge Agreement (relating to shares of Invensys
Metering Systems SAS) among Financiére Pollux, the European Collateral Agent
and the other European Secured Parties, each dated December 17, 2003 and each
substantially in the form of Exhibit F-2.

 

“GAAP”
shall mean United States generally accepted accounting principles.

 

“General Administrative
Agent” shall mean CSFB, acting through any of its affiliates or
branches, as administrative agent for the Lenders under this Agreement, and any
successor thereto appointed pursuant to Article VIII.

 

“German Pledge
Agreements” shall mean the collective reference to (a) the Share
Pledge Agreement (relating to shares of Blitz F03-1420 GmbH) among Sensus
Metering Systems (LuxCo 3) s.àr.l., the European Collateral Agent and the other
European Secured Parties, (b) the Share Pledge Agreement (relating to shares of
Invensys Metering Systems Holding GmbH) among Blitz F03-1420 GmbH, the European
Collateral Agent and the other European Secured Parties, (c) the Share Pledge
Agreement (relating to shares of IMServ GmbH, Invensys Metering Systems GmbH
Hannover and Invensys Metering Systems GmbH Ludwigshafen) among Invensys Metering
Systems Holding GmbH, the European Collateral Agent and the other European
Secured Parties, and (d) the Interest Pledge Agreement (relating to interests
in Pollux Meter GmbH & Co. KG) among Invensys Metering Systems Holding
GmbH, IMServ GmbH, the European Collateral Agent and the other European Secured
Parties, each dated December 17, 2003 and each substantially in the form of
Exhibit F-1.

 

“Governmental Authority”
shall mean any Federal, state, local or foreign court or governmental agency,
authority, instrumentality or regulatory body.

 

18

 

“Granting Lender”
shall have the meaning assigned to such term in Section 9.04(i).

 

“Guarantee”
of or by any person shall mean any obligation, contingent or otherwise, of such
person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such person, direct or
indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to
advance or supply funds for the purchase of) any security for the payment of
such Indebtedness or other obligation, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment of such Indebtedness or other
obligation or (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other obligation; provided,
however,
that the term “Guarantee” shall not
include endorsements for collection or deposit in the ordinary course of
business.

 

“Guarantors”
shall mean Holdings, the U.S. Borrower and the Subsidiary Guarantors.

 

“Hazardous Materials”
shall mean (a) any petroleum products or byproducts and all other hydrocarbons,
coal ash, radon gas, asbestos, urea formaldehyde foam insulation,
polychlorinated biphenyls, chlorofluorocarbons and all other ozone-depleting
substances and (b) any chemical, material, substance or waste that is
prohibited, limited or regulated by or pursuant to any Environmental Law.

 

“Hedging Agreement”
shall mean any interest rate protection agreement, foreign currency exchange
agreement, commodity price protection agreement or other interest or currency
exchange rate or commodity price hedging arrangement.

 

“Holdings”
shall have the meaning set forth in the preamble.

 

“Holdings Equity Contribution” shall mean
the indirect contribution by the Permitted Investors and certain other
investors of $195,000,000 in cash to Holdings in the form of common and/or
preferred equity or other capital contribution, which cash shall be used by
Holdings to finance in part the Acquisition and to pay related fees and
expenses.

 

“Immaterial Subsidiary”
shall mean, at any time, (a) the Subsidiaries set forth on Schedule 1.01(c),
and (b) any Subsidiary that (i) contributed 2.5% or less of the Consolidated
EBITDA of Holdings and the Subsidiaries for the period of four fiscal quarters
most recently ended on or prior to the date of determination, and (ii) had
consolidated assets representing 2.5% or less of the total consolidated assets
of Holdings and the Subsidiaries on the last day of the most recent fiscal
quarter ended on or prior to the date of determination.

 

“Incentive Arrangements”
shall mean any (a) earn-out arrangements, (b) share or stock appreciation
rights, (c) “phantom” share or stock plans, (d) non-competition agreements and
(e) other incentive and bonus plans entered into by Holdings or any Subsidiary
for the benefit of, and in order to retain, executives, officers or employees
of persons or businesses in connection with the Acquisition or with the
Permitted Acquisition of such person or business after the Closing Date.

 

19

 

“Incremental Revolving
Facility Amount” shall mean, at any time, the excess, if any, of
(a) $50,000,000 over (b) the aggregate increase in the Revolving Commitments
established prior to such time pursuant to Section 2.25.

 

“Incremental Term
Commitment” shall mean the commitment of any Lender, established
pursuant to Section 2.24, to make Incremental Term Loans to a Borrower.

 

“Incremental Term
Lender”  shall mean a Lender with an Incremental
Term Commitment or an outstanding Incremental Term Loan.

 

“Incremental Term Loan
Amount” shall mean, at any time, the excess, if any, of
(a) $100,000,000 over (b) the aggregate amount of all Incremental
Term Commitments established prior to such time pursuant to Section  2.24.

 

“Incremental Term Loan
Assumption Agreement” shall mean an Incremental Term Loan
Assumption Agreement in form and substance reasonably satisfactory to the
General Administrative Agent, among the applicable Borrower, the General
Administrative Agent and one or more Incremental Term Lenders.

 

“Incremental Term Loan
Maturity Date” shall mean the final maturity date of any
Incremental Term Loan, as set forth in the applicable Incremental Term Loan
Assumption Agreement.

 

“Incremental Term Loan
Repayment Dates” shall mean the dates scheduled for the
repayment of principal of any Incremental Term Loan, as set forth in the
applicable Incremental Term Loan Assumption Agreement.

 

“Incremental Term Loans”
shall mean Term Loans made by one or more Lenders to a Borrower pursuant to
Section 2.01(b).  Incremental Term
Loans may be made in the form of additional Term B-1 Loans, additional Term B-2
Loans or, to the extent permitted by Section 2.24 and provided for in the
relevant Incremental Term Loan Assumption Agreement, Other Term Loans.

 

“Indebtedness”
of any person shall mean, without duplication, (a) all obligations of such person
for borrowed money, (b) all obligations of such person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such person
under conditional sale or other title retention agreements relating to property
or assets purchased by such person, (d) all obligations of such person issued
or assumed as the deferred purchase price of property or services (excluding
trade accounts payable and accrued obligations incurred in the ordinary course
of business), which purchase price is due more than 90 days after the purchase
of such property or service, (e) all Indebtedness of others secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on property owned or acquired by such
person, whether or not the obligations secured thereby have been assumed, (f)
all Guarantees by such person of Indebtedness of others, (g) all Capital Lease
Obligations and Synthetic Lease Obligations of such person, (h) all obligations
of such person as an account party in respect of letters of credit,
(i) all obligations of such person in respect of bankers’ acceptances,
(j) all obligations of such person under or in respect of Hedging
Agreements and (k) all obligations of such person in respect of Disqualified
Capital Stock of

 

20

 

such person. 
For purposes of determining the amount of Indebtedness of any person
under clause (j) of the preceding sentence, the amount of the obligations of
such person in respect of any Hedging Agreement at any time shall be the
maximum aggregate amount (giving effect to any netting agreements) that such
person would be required to pay if such Hedging Agreement were terminated at
such time.  The Indebtedness of any
person shall include the Indebtedness of any partnership in which such person
is a general partner to the extent such person is liable therefor by contract,
as a matter of law or otherwise, and shall not include any Indebtedness of any
such partnership that is expressly non-recourse to such person.  Notwithstanding the foregoing, “Indebtedness” shall
not include obligations arising under agreements of Holdings or a Subsidiary
providing for indemnification, adjustment of purchase price or other post-closing
payment adjustments, including wholly contingent earn-outs and other similar
arrangements, in each case incurred in connection with the disposition or
acquisition of the assets of any person, a business of any person or the Equity
Interests in any person.

 

“Indemnified Taxes”
shall mean Taxes other than Excluded Taxes.

 

“Interest Coverage
Ratio” shall mean, for any period, the ratio of (a) Consolidated
EBITDA for such period to (b) Consolidated Interest Expense for such period.

 

“Interest Payment Date”
shall mean (a) with respect to any ABR Loan or EBR Loan, the last Business Day
of each March, June, September and December, and (b) with respect to any
Eurocurrency Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurocurrency
Borrowing with an Interest Period of more than three months’ duration, each day
that would have been an Interest Payment Date had successive Interest Periods
of three months’ duration been applicable to such Borrowing, and, in addition,
the date of any prepayment of a Eurocurrency Borrowing or conversion of a
Eurocurrency Borrowing to an ABR Borrowing or an EBR Borrowing.

 

“Interest Period”
shall mean, with respect to any Eurocurrency Borrowing, the period commencing
on the date of such Borrowing and ending on the numerically corresponding day
(or, if there is no numerically corresponding day, on the last day) in the
calendar month that is 1, 2, 3 or 6 months thereafter (or 9 or 12 months
thereafter if, at the time of the relevant Borrowing, all Lenders participating
therein agree to make an Interest Period of such duration available), as the
relevant Borrower may elect; provided, however, that if any
Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day unless such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day.  Interest shall accrue from and including the
first day of an Interest Period to but excluding the last day of such Interest
Period. For purposes hereof, the date of a Borrowing initially shall be the
date on which such Borrowing is made and thereafter shall be the effective date
of the most recent conversion or continuation of such Borrowing.

 

“Issuing Bank”
shall mean, as the context may require, (a) CSFB, in its capacity as the issuer
of Letters of Credit hereunder, and (b) any other Lender that may become an
Issuing Bank pursuant to Section 2.23(i) or 2.23(k), with respect to
Letters of Credit issued by such Lender. 
Any Issuing Bank may, in its discretion, arrange for one or more Letters
of Credit to be issued by

 

21

 

Affiliates or branches of such Issuing Bank,
in which case the term “Issuing Bank” shall include any such Affiliate or branch
with respect to Letters of Credit issued by such Affiliate or branch.

 

“Issuing Bank Fees”
shall have the meaning assigned to such term in Section 2.05(c).

 

“L/C Commitment”
shall mean the commitment of the Issuing Bank to issue Letters of Credit
pursuant to Section 2.23.

 

“L/C Disbursements”
shall mean the U.S. L/C Disbursements and the European L/C Disbursements.

 

“L/C Exposures”
shall mean the U.S. L/C Exposures and the European L/C Exposures.

 

“L/C Participation Fee”
shall have the meaning assigned to such term in Section 2.05(c).

 

“Lenders”
shall mean (a) the persons listed on Schedule 2.01 (other than any such
person that has ceased to be a party hereto pursuant to an Assignment and
Acceptance) and (b) any person that has become a party hereto pursuant to
an Assignment and Acceptance.  Unless
the context clearly indicates otherwise, the term “Lenders” shall include the Swingline Lender.

 

“Letters of Credit”
shall mean the U.S. Letters of Credit and the European Letters of Credit.

 

“Leverage Ratio”
shall mean, on any date, the ratio of Total Debt on such date to Consolidated
EBITDA for the period of four consecutive fiscal quarters most recently ended
on or prior to such date; provided, however, that for purposes of
calculating the Leverage Ratio, unrestricted cash on hand at Holdings and the
Subsidiaries in an aggregate amount not to exceed $15,000,000 on such date
shall be deducted from the amount of Total Debt on such date.

 

“LIBO Rate”
shall mean, with respect to any Eurocurrency Borrowing for any Interest Period,
the rate per annum determined by the Applicable Administrative Agent at
approximately 11:00 a.m. (London time), on the date that is two Business Days
prior to the commencement of such Interest Period by reference to the British
Bankers’ Association Interest Settlement Rates for deposits in the Currency of
such Borrowing (as set forth by any service selected by the Applicable Administrative
Agent that has been nominated by the British Bankers’ Association as an
authorized information vendor for the purpose of displaying such rates) for a
period equal to such Interest Period; provided, however, that, to the extent
that an interest rate is not ascertainable pursuant to the foregoing provisions
of this definition, the “LIBO Rate” shall be the interest rate per annum
determined by the Applicable Administrative Agent to be the average of the
rates per annum at which deposits in the Currency of such Borrowing are offered
for such relevant Interest Period to major banks in the London interbank market
in London, England by the Applicable Administrative Agent at approximately
11:00 a.m. (London time) on the date that is two Business Days prior to the
beginning of such Interest Period.

 

“Lien”
shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, encumbrance, charge or security interest in or on such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement (or any financing lease having substantially
the same economic effect as any of the foregoing) relating to

 

22

 

such asset and (c) in the case of securities,
any purchase option, call or similar right of a third party with respect to
such securities.

 

“Loan Documents”
shall mean this Agreement, the Security Documents and each Incremental Term
Loan Assumption Agreement.

 

“Loan Parties”
shall mean the Borrowers and the Guarantors.

 

“Loans”
shall mean the Revolving Loans, the Term Loans and the Swingline Loans.

 

“Local Time”
shall mean (a) with respect to a Loan, Borrowing or Letter of Credit
denominated in Dollars, New York City time, and (b) with respect to a
Loan, Borrowing or Letter of Credit denominated in a Designated Foreign
Currency, London time.

 

“Luxembourg Pledge
Agreements” shall mean the collective reference to (a) the
Pledge Over Shares (relating to shares of Sensus Metering Systems (LuxCo 1)
s.àr.l.) between Sensus Metering Systems (Bermuda 3) Ltd. and the European
Collateral Agent, (b) the Pledge Over Shares (relating to shares of the
European Borrower) between Sensus Metering Systems (LuxCo 1) s.àr.l. and
the European Collateral Agent, (c) the Pledge Over Shares (relating to shares
of Invensys Metering Systems (LuxCo 3) s.àr.l.) between the European Borrower
and the European Collateral Agent, (d) the Pledge Over Claims Agreement between
the European Borrower and the European Collateral Agent, and (e) the Pledge
Over Claims Agreement between Sensus Metering Systems (Bermuda 3) Ltd. and the
European Collateral Agent, each dated December 17, 2003 and each substantially
in the form of Exhibit F-3.

 

“Management Consulting
Agreement” shall mean the Management Consulting Agreement, dated
as of December 17, 2003, by and among The Jordan Company, L.P., a Delaware
limited partnership, Sensus Metering Systems (Bermuda 1) Ltd., a company
organized under the laws of Bermuda, and its direct and indirect subsidiaries,
as amended, restated or otherwise modified from time to time.

 

“Margin Stock”
shall have the meaning assigned to such term in Regulation U.

 

“Material Adverse
Effect” shall mean (a) a materially adverse effect on the
business, operations or financial condition of Holdings and its Subsidiaries,
taken as a whole, or (b) a material impairment of the ability of Holdings or
any other Loan Party to perform any of its obligations under any Loan Document
to which it is or will be a party.

 

“Material Indebtedness”
shall mean Indebtedness (other than the Loans and Letters of Credit) of any one
or more of Holdings and its Subsidiaries in an aggregate principal amount
exceeding $15,000,000.

 

“Minority Holder
Acknowledgement, Consent and Waiver” shall mean an agreement
substantially in the form of Exhibit I, with such modifications to such form as
may be reasonably approved by the General Administrative Agent.

 

23

 

“Mortgaged Properties”
shall mean, initially, the real properties owned by the Loan Parties specified
on Schedule 1.01(b), and shall include each parcel of real property and
improvements thereto with respect to which a Mortgage is granted pursuant to
Section 5.09.

 

“Mortgages”
shall mean the mortgages, deeds of trust, assignments of leases and rents,
modifications and other security documents delivered pursuant to clause (i) of
Section 4.02(h) or pursuant to Section 5.09, each substantially in
the form of Exhibit J.

 

“Multiemployer Plan”
shall mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA
with respect to which Holdings or any ERISA Affiliate shall have any liability.

 

“Net Cash Proceeds”
shall mean (a) with respect to any Asset Sale, the cash proceeds (including
cash proceeds subsequently received (as and when received) in respect of
noncash consideration initially received), net of (i) selling expenses
(including reasonable investment banker’s fees, broker’s fees or commissions,
transfer and similar taxes, Holdings’ good faith estimate of income taxes paid
or payable in connection with such sale and legal fees and other costs and
expenses incurred in connection therewith), (ii) amounts provided as a
reserve, in accordance with GAAP, against any liabilities under any indemnification
obligations or purchase price adjustment associated with such Asset Sale (provided
that, to the extent and at the time any such amounts are released from such
reserve, such amounts shall constitute Net Cash Proceeds) and (iii) the
principal amount, premium or penalty, if any, interest and other amounts on any
Indebtedness for borrowed money which is secured by the asset sold in such
Asset Sale and which is required to be repaid with such proceeds (other than
any such Indebtedness assumed by the purchaser of such asset); provided,
however,
that, if no Event of Default shall have occurred and shall be continuing at the
time of the receipt of such proceeds or at the proposed time of the application
thereof, such proceeds shall not constitute Net Cash Proceeds to the extent
reinvested or contractually committed to be reinvested in assets of a kind then
used or usable in the business of Holdings and the Subsidiaries within 360 days
of such receipt; and (b) with respect to (i) any issuance of Indebtedness,
(ii) any Equity Issuance or (iii) the transfer of Receivables
pursuant to the Receivables Program, the cash proceeds thereof, net of all
taxes and reasonable investment banker’s fees, underwriting discounts or
commissions, legal fees and other costs and other expenses incurred in
connection therewith.

 

“Obligations”
shall mean the U.S. Obligations and the European Obligations.

 

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

 

“Other Term Loans”
shall have the meaning assigned to such term in Section 2.24.

 

“PBGC” shall
mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA.

 

“Perfection Certificate”
shall mean the Perfection Certificate substantially in the form of
Exhibit G, prepared, signed and delivered by Holdings and the U.S.
Borrower.

 

24

 

“Permitted Acquisition”
shall have the meaning assigned to such term in Section 6.04(g).

 

“Permitted Investments”
shall mean:

 

(a) direct
obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency
thereof to the extent such obligations are backed by the full faith and credit
of the United States of America), in each case maturing within one year from
the date of acquisition thereof;

 

(b) investments
in commercial paper maturing within 270 days from the date of acquisition
thereof and having, at such date of acquisition, a credit rating of “A-1” (or
higher) from Standard & Poor’s Ratings Service or “P-1” (or higher) from
Moody’s Investors Service, Inc.;

 

(c) investments
in certificates of deposit, banker’s acceptances and time deposits maturing
within one year from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, the
General Administrative Agent or any domestic office of any Lender or any other
commercial bank organized under the laws of the United States of America or any
State thereof that has a combined capital and surplus and undivided profits of
not less than $500,000,000;

 

(d) fully
collateralized repurchase agreements with a term of not more than 30 days
for securities described in clauses (a), (b) or (c) above and entered into
with a financial institution satisfying the criteria of clause (c) above;

 

(e) investments
in “money market funds” within the meaning of Rule 2a-7 of the Investment
Company Act of 1940, as amended, substantially all of whose assets are invested
in investments of the type described in clauses (a) through (d) above; and

 

(f) other
short-term investments utilized by Foreign Subsidiaries in accordance with
normal investment practices for cash management in investments of a type
analogous to the foregoing.

 

“Permitted Investors” shall mean
(a) the Sponsors and their respective Affiliates and (b) the management, employees and
directors of Holdings or any Subsidiary on or after the Closing Date and prior
to April 1, 2004.

 

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

 

“Plan”
shall mean any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the
Code or Section 307 of ERISA, and in respect of which Holdings or any
ERISA Affiliate is (or, if such plan were terminated, would under
Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

 

25

 

“Prime Rate” shall mean the rate of interest per annum determined from time
to time by the General Administrative Agent as its prime rate in effect at its
principal office in New York City.

 

“Pro Forma Basis”
shall mean, with respect to compliance with any test or covenant hereunder,
compliance with such covenant or test after giving effect to any proposed
Permitted Acquisition or Asset Sale, using, for purposes of determining such
compliance, the historical financial statements of all entities or assets so
acquired or sold or to be acquired or sold and the consolidated financial
statements of Holdings and its Subsidiaries which shall be reformulated as if
such Permitted Acquisition or Asset Sale, and all other Permitted Acquisitions
or Asset Sales that have been consummated during the period, and any
Indebtedness or other liabilities incurred in connection with any such
Permitted Acquisition had been consummated and incurred at the beginning of
such period.  In making the calculations
referred to above, pro forma effect shall be given to events that are directly
attributable to the proposed Permitted Acquisition or Asset Sale, are factually
supportable and are expected to have a continuing impact (a) as determined
on a basis consistent with Article 11 of Regulation S-X of the Securities Act
of 1933, as amended, as interpreted by the Staff of the Securities and Exchange
Commission, and/or (b) as reasonably determined by Holdings and, in each case,
as certified by a Financial Officer of Holdings; provided, however,
that the aggregate amount of the adjustments made pursuant to clause (b) for
any period of four consecutive fiscal quarters shall not exceed 5% of the
Consolidated EBITDA (calculated without giving any effect to the proposed
Permitted Acquisition or Asset Sale) for such period.

 

“Pro Forma Compliance”
shall mean, at any date of determination, that Holdings shall be in pro forma
compliance with the covenants set forth in Sections 6.10, 6.11 and 6.12 as
of the date of such determination or the last day of the most recent
fiscal-quarter end, as the case may be (computed on the basis of
(a) balance sheet amounts as of such date and (b) income statement
amounts for the most recently completed period of four consecutive fiscal
quarters for which financial statements shall have been delivered to the
General Administrative Agent and calculated on a Pro Forma Basis in respect of
the event giving rise to such determination).

 

“Pro Rata Percentage”
shall mean, as the context may require, the U.S. Pro Rata Percentage or the
European Pro Rata Percentage.

 

“Public Equity Offering” shall mean an
underwritten public offering of common shares of, and by, Holdings pursuant to
a registration statement filed with the Securities and Exchange Commission in
accordance with the U.S. Securities Act of 1933, as amended, which yields not
less than $50,000,000 in Net Cash Proceeds to Holdings.

 

“Purchase Agreement”
shall mean the Stock Purchase Agreement, dated as of October 21, 2003,
among IMS Meters Holdings, Inc., Invensys plc, Invensys Inc., Invensys
International Holdings Limited, BTR Industries Limited, Foxboro Iberica SA, BTR
France SAS, Invensys Holdings Limited and Invensys SA (Pty) Ltd., as amended by
that certain amendment thereto dated as of December 17, 2003.

 

“Receivables” shall
mean all accounts receivable (whether now existing or arising in
the future) of Holdings or any Subsidiary, all collateral securing such
accounts receivable, all

 

26

 

guarantees or other obligations in respect of
such accounts receivable, proceeds of such accounts receivable and other assets
(including contract rights) that are customarily transferred in connection with
asset securitization transactions involving accounts receivable.

 

“Receivables Program”
shall mean any transaction or series of transactions entered into
by Holdings or any Subsidiary pursuant to which Holdings or any Subsidiary
sells, conveys or otherwise transfers to (a) a Receivables Subsidiary (in the
case of a transfer by Holdings or any Subsidiary) or (b) one or more special
purpose entities which are not Affiliates of Holdings or any Subsidiary (in the
case of a transfer by a Receivables Subsidiary), any Receivables, provided
that any such sale, conveyance or transfer is in exchange for consideration
equal to the fair market value of such Receivables (i.e., a “true sale”),
including cash in an amount equal to at least 75% of the book value of such
Receivables as determined in accordance with GAAP (it being understood that
investments received in exchange for the transfer of accounts receivable and
related assets will be deemed to constitute cash for purposes of such 75% test
if the Receivables Subsidiary or other payor is required to repay such
investments as soon as practicable from available cash collections less amounts
required to be established as reserves pursuant to contractual agreements with
persons that are not Affiliates of Holdings entered into as part of a
Receivables Program).

 

“Receivables Subsidiary”
shall mean a wholly owned Subsidiary of Holdings which engages in
no activities other than in connection with the financing of accounts
receivable or related assets (including contract rights) and which is
designated by the board of directors of Holdings (as provided below) as a
Receivables Subsidiary (a) no portion of the Indebtedness or any related
obligations (including with respect to principal, premium, interest, penalties,
fees, indemnifications, reimbursements and all other amounts payable pursuant
to the documentation such Indebtedness), contingent or otherwise, of which (i)
is Guaranteed by Holdings or any other Subsidiary (but excluding customary
representations, warranties, covenants and indemnities entered into in
connection with a Receivables Program), (ii) is recourse to or obligates
Holdings or any other Subsidiary in any way other than pursuant to customary
representations, warranties, covenants and indemnities entered into in
connection with a Receivables Program or (iii) subjects any property or asset
(including contract rights) of Holdings or any other Subsidiary (other than
accounts receivable and related assets as provided in the definition of  “Receivables Program”), directly or
indirectly, contingently or otherwise, to the satisfaction thereof, other than
pursuant to customary representations, warranties, covenants and indemnities
entered into in connection with a Receivables Program, (b) with which none of
Holdings or any other Subsidiary has any material contract, agreement,
arrangement or understanding other than on terms no less favorable to Holdings
or such other Subsidiary than those that might be obtained at the time from
persons who are not Affiliates of Holdings, other than customary fees payable
in connection with servicing accounts receivable and (c) with which none of
Holdings or any other Subsidiary has any obligation to maintain or preserve
such Subsidiary’s financial condition or cause such Subsidiary to achieve
certain levels of operating results. Holdings shall provide written notice to
the General Administrative Agent of any such designation by the board of
directors of Holdings, which notice shall be accompanied by a certified copy of
the resolution of the board of directors of Holdings giving effect to such
designation and a certificate of a Financial Officer of Holdings certifying
that such designation complied with the foregoing conditions.

 

27

 

“Register”
shall have the meaning assigned to such term in Section 9.04(d).

 

“Regulation T”
shall mean Regulation T of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

 

“Regulation U”
shall mean Regulation U of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

 

“Regulation X”
shall mean Regulation X of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

 

“Related Fund”
shall mean, with respect to any Lender that is a fund that invests in bank
loans, any other fund that invests in bank loans and is administered, advised
or managed by the same investment advisor as such Lender or by an Affiliate of
such investment advisor.

 

“Related Parties”
shall mean, with respect to any specified person, such person’s Affiliates and
the respective directors, officers, employees, agents and advisors of such
person and such person’s Affiliates.

 

“Release”
shall mean any release, spill, emission, leaking, dumping, injection, pouring,
deposit, disposal, discharge, dispersal, leaching or migration into or through
the environment or within or upon any building, structure, facility or fixture.

 

“Repayment Date”
shall have the meaning assigned to such term in Section 2.11.  Unless the context otherwise requires, the
term “Repayment Date”
shall also include each Incremental Term Loan Repayment Date.

 

“Required Lenders”
shall mean, at any time, Lenders having Loans (excluding Swingline Loans), L/C
Exposure, Swingline Exposure and unused Revolving Commitments and Term Loan
Commitments representing more than 50% of the sum of all Loans outstanding
(excluding Swingline Loans), L/C Exposure, Swingline Exposure and unused
Revolving Commitments and Term Loan Commitments at such time; provided,
however,
that the Revolving Loans, L/C Exposure, Swingline Exposure and unused Revolving
Commitments of any Defaulting Lender shall be disregarded in the determination
of Required Lenders at any time.

 

“Reset Date”
shall have the meaning assigned to such term in Section 1.05.

 

“Responsible Officer”
of any person shall mean any executive officer or Financial Officer of such
person and any other officer or similar official thereof responsible for the
administration of the obligations of such person in respect of this Agreement.

 

“Restricted Indebtedness”
shall mean Indebtedness of Holdings or any Subsidiary, the payment, prepayment,
repurchase or defeasance of which is restricted under Section 6.09(b).

 

“Restricted Payment”
shall mean any dividend or other distribution (whether in cash, securities or
other property) with respect to any Equity Interests in Holdings or any
Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancelation or

 

28

 

termination of any Equity Interests in
Holdings or any Subsidiary or any option, warrant or other right to acquire any
such Equity Interests in Holdings or any Subsidiary.

 

“Revolving Borrowing”
shall mean a Borrowing comprised of Revolving Loans.

 

“Revolving Commitments”
shall mean the U.S. Revolving Commitments and the European Revolving
Commitments.

 

“Revolving Credit Maturity Date”
shall mean December 17, 2009.

 

“Revolving Exposures”
shall mean, with respect to any Lender, such Lender’s U.S. Revolving Exposure
and European Revolving Exposure.

 

“Revolving Lenders”
shall mean the U.S. Revolving Lenders and the European Revolving Lenders.

 

“Revolving Loans”
shall mean the U.S. Revolving Loans and the European Revolving Loans.

 

“Secured Parties”
shall mean the U.S. Secured Parties and the European Secured Parties.

 

“Security Documents”
shall mean the U.S. Security Documents and the European Security Documents.

 

“SPC”
shall have the meaning assigned to such term in Section 9.04(i).

 

“Sponsors” shall mean The Resolute Fund
L.P., a Delaware limited partnership, and GS Capital Partners 2000, L.P., a
Delaware limited partnership.

 

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

 

“Sterling”
or “£” shall mean the
lawful money of the United Kingdom.

 

“Subordinated Notes”
shall mean the U.S. Borrower’s 8-5⁄8% Senior Subordinated Notes due 2013,
in an initial aggregate principal amount of $275,000,000.

 

29

 

“Subordinated Note Documents”
shall mean the indenture under which the Subordinated Notes are issued and all
other instruments, agreements and other documents evidencing or governing the
Subordinated Notes or providing for any Guarantee or other right in respect
thereof.

 

“subsidiary”
shall mean, with respect to any person (herein referred to as the “parent”), any corporation, company, limited
liability company, partnership, association or other business entity of which
securities or other ownership interests representing more than 50% of the
ordinary voting power are, at the time any determination is being made, owned,
controlled or held, by the parent or one or more subsidiaries of the parent or
by the parent and one or more subsidiaries of the parent.

 

“Subsidiary”
shall mean any subsidiary of Holdings or a Borrower; provided, however,
that Unrestricted Subsidiaries shall be deemed not to be Subsidiaries for any
purpose of this Agreement or the other Loan Documents.

 

“Subsidiary Guarantor”
shall mean each Subsidiary listed on Schedule 1.01(a), and each other
Subsidiary that is or becomes a party to the U.S. Guarantee and Collateral
Agreement or the European Guarantee Agreement.

 

“Swingline Commitments”
shall mean the U.S. Swingline Commitment and the European Swingline Commitment.

 

“Swingline Exposure”
shall mean the U.S. Swingline Exposure and the European Swingline Exposure.

 

“Swingline Lender”
shall mean Credit Suisse First Boston, acting through any of its Affiliates or
branches, in its capacity as lender of Swingline Loans hereunder.

 

“Swingline Loans”
shall mean the U.S. Swingline Loans and the European Swingline Loans.

 

“Synthetic Lease” shall mean, as to any
person, any lease (including leases that may be terminated by the lessee at any
time) of any property (whether real, personal or mixed) (a) that is accounted
for as an operating lease under GAAP and (b) in respect of which the lessee
retains or obtains ownership of the property so leased for U.S. Federal income
tax purposes, other than any such lease under which such person is the lessor.

 

“Synthetic Lease Obligations” shall mean,
as to any person, an amount equal to the sum of (a) the obligations of such
person to pay rent or other amounts under any Synthetic Lease which are
attributable to principal and, without duplication, (b) the amount of any
purchase price payment under any Synthetic Lease assuming the lessee exercises
the option to purchase the leased property at the end of the lease term.

 

“Synthetic Purchase Agreement”
shall mean any swap, derivative or other agreement or combination of agreements
pursuant to which Holdings or any Subsidiary is or may become obligated to make
(a) any payment in connection with a purchase by any third party from a person
other than Holdings or any Subsidiary of any Equity Interest or Restricted
Indebtedness

 

30

 

of Holdings or a Subsidiary or (b) any
payment (other than on account of a permitted purchase by it of any Equity
Interest or Restricted Indebtedness) the amount of which is determined by
reference to the price or value at any time of any Equity Interest or
Restricted Indebtedness of Holdings or a Subsidiary; provided, however, that no Incentive
Arrangement or any other phantom share or stock or similar plan providing for
payments only to current or former directors, officers or employees of Holdings
or the Subsidiaries (or to their heirs or estates) shall be deemed to be a
Synthetic Purchase Agreement.

 

“Systems/Organizational
Establishment Expenses” shall mean, without duplication,  all expenditures (whether paid in cash or
accrued as liabilities) by Holdings and the Subsidiaries in establishing
financial, information technology and other similar systems of Holdings and the
Subsidiaries, including costs of the transition and integration of any such
systems acquired in the Acquisition, as a direct result of the establishment of
the Acquired Business as a standalone business following the Acquisition, and
any similar systems establishment and implementation and transition and
integration costs incurred in connection with any Permitted Acquisition.

 

“Tax Distribution”
shall mean any payment made by Holdings to an Ultimate Parent or any direct or
indirect holder of Equity Interests of an Ultimate Parent solely in respect of
the U.S. Federal and applicable state and local income tax liabilities of an
Ultimate Parent or any direct or indirect holder of Equity Interests in an
Ultimate Parent directly attributable to (or arising as a result of) the
operations of Holdings and the Subsidiaries (other than taxes arising as result
of a dividend or distribution to such person); provided that no such
payment shall be in an amount that exceeds the amount of taxes actually paid or
payable in cash to the applicable taxing authority by any such person during or
in respect of the applicable tax period, as reasonably determined by Holdings
based on information provided by an Ultimate Parent or any direct or indirect
holder of Equity Interests of an Ultimate Parent.

 

“Taxes”
shall mean any and all present or future taxes, levies, imposts, duties,
deductions, charges, liabilities or withholdings imposed by any Governmental
Authority.

 

“Term B-1 Commitment”
shall mean, with respect to each Term B-1 Lender, its commitment set forth on
Schedule 2.01 (or in the Assignment and Acceptance pursuant to which it shall
have assumed its Term B-1 Commitment) to make Term B-1 Loans to the U.S.
Borrower, as the same may be (a) increased from time to time pursuant to
Section 2.24 or (b) reduced or increased from time to time pursuant
to assignments by or to such Term B-1 Lender pursuant to
Section 9.04.  The aggregate amount
of the Term B-1 Commitments on the Closing Date is $200,000,000.

 

“Term B-1 Lender”
shall mean a Lender with a Term B-1 Commitment and/or an outstanding Term B-1
Loan.

 

“Term B-1 Loans”
shall mean the term loans made by the Term B-1 Lenders to the U.S. Borrower
pursuant to clause (i) of Section 2.01(a).

 

“Term B-2 Commitment”
shall mean, with respect to each Term B-2 Lender, its commitment set forth on
Schedule 2.01 (or in the Assignment and Acceptance pursuant to which it
shall have assumed its Term B-2 Commitment) to make Term B-2 Loans to the
European

 

31

 

Borrower in Dollars, as the same may be
(a) increased from time to time pursuant to Section 2.24 or (b) reduced or
increased from time to time pursuant to assignments by or to such Term B-2
Lender pursuant to Section 9.04. 
The aggregate amount of the Term B-2 Commitments on the Closing Date is
$30,000,000.

 

“Term B-2 Lender”
shall mean a Lender with a Term B-2 Commitment and/or an outstanding Term B-2
Loan.

 

“Term B-2 Loans”
shall mean the term loans made by the Term B-2 Lenders to the European Borrower
pursuant to clause (ii) of Section 2.01(a).

 

“Term Borrowing”
shall mean a Borrowing comprised of Term Loans or Incremental Term Loans.

 

“Term Lenders”
shall mean the Term B-1 Lenders and the Term B-2 Lenders.  Unless the context shall otherwise require,
the term “Term Lenders”
shall also include the Incremental Term Lenders.

 

“Term Loan Commitments”
shall mean the Term B-1 Commitments and the Term B-2 Commitments.  Unless the context shall otherwise require,
the term “Term Loan Commitments”
shall also include the Incremental Term Commitments.

 

“Term Loan Maturity Date”
shall mean December 17, 2010.

 

“Term Loans”
shall mean the Term B-1 Loans and the Term B-2 Loans.  Unless the context shall otherwise require, the term “Term Loans” shall
also include Incremental Term Loans.

 

“Total Debt”
shall mean, as of any date of determination, the aggregate principal amount of
all Indebtedness of Holdings and its Subsidiaries as of such date, determined
on a consolidated basis (other than (a) Indebtedness of the type referred
to in clause (j) of the definition of the term “Indebtedness”, (b)
Indebtedness of the type referred to in clause (h) of the definition of the
term “Indebtedness”, except to the extent of unreimbursed drawings thereunder,
and (c) Indebtedness of the type referred to in Section 6.01(f) that is not
then due and payable by Holdings or a Subsidiary).

 

“Transactions”
shall mean, collectively, (a) the execution, delivery and performance by
Holdings and its Subsidiaries of the Purchase Agreement and the consummation of
the Acquisition, (b) the execution, delivery and performance by the Loan
Parties of the Loan Documents to which they are a party and, in the case of the
Borrowers, the making of the initial Borrowings hereunder, (c) the
execution, delivery and performance by the Loan Parties of the Subordinated
Note Documents to which they are a party and, in the case of the U.S. Borrower,
the issuance of the Subordinated Notes, (d) the payment of the Acquisition
Consideration and (e) the payment of related fees and expenses.

 

“Type”,
when used in respect of any Loan or Borrowing, shall refer to the Rate by
reference to which interest on such Loan or on the Loans comprising such
Borrowing is

 

32

 

determined. 
For purposes hereof, the term “Rate” shall include the Adjusted LIBO
Rate, the Alternate Base Rate and the European Base Rate.

 

“Ultimate Parent”
shall mean (a) Sensus Metering Systems (Bermuda 1) Ltd., a company
organized under the laws of Bermuda and (b) any other entity of which
Holdings becomes a wholly owned subsidiary after the Closing Date.

 

“Unrestricted
Subsidiary” shall mean any Subsidiary organized or acquired
directly or indirectly by Holdings after the Closing Date that, substantially
contemporaneously with such organization or acquisition, Holding designates as
an “Unrestricted Subsidiary” by written notice to the General Administrative
Agent.  No Unrestricted Subsidiary may
own any Equity Interests of a Subsidiary; provided that, so long as no Default or
Event of Default shall have occurred and be continuing or would result
therefrom, Holdings may redesignate any Unrestricted Subsidiary as a
“Subsidiary” by written notice to the General Administrative Agent and by
complying with the applicable provisions of Section 5.09.

 

“U.S. Borrower”
shall have the meaning set forth in the preamble.

 

“U.S. Collateral”
shall mean all “Collateral” as defined in any U.S. Security Document.

 

“U.S. Collateral Agent”
shall mean CSFB, acting through any of its affiliates or branches, as collateral
agent for the U.S. Lenders under this Agreement and the U.S. Security
Documents, and any successor thereto pursuant to Article VIII.

 

“U.S. Guarantee and Collateral Agreement”
shall mean the U.S. Guarantee and Collateral Agreement, substantially in the
form of Exhibit D, among the U.S.  Borrower, Holdings, the Domestic
Subsidiaries party thereto and the U.S. Collateral Agent for the benefit of the
Secured Parties.

 

“U.S. L/C Disbursement”
shall mean a payment or disbursement made by an Issuing Bank pursuant to a U.S.
Letter of Credit.

 

“U.S. L/C Exposure”
shall mean at any time the sum of (a) the aggregate undrawn amount of all
outstanding U.S. Letters of Credit at such time and (b) the aggregate
principal amount of all U.S. L/C Disbursements that have not yet been
reimbursed at such time.  The U.S. L/C
Exposure of any U.S. Revolving Lender at any time shall equal its U.S. Pro Rata
Percentage of the aggregate U.S. L/C Exposure at such time.

 

“U.S. Lenders”
shall mean the Term B-1 Lenders and the U.S. Revolving Lenders.

 

“U.S. Letter of Credit”
shall mean any letter of credit issued by an Issuing Bank pursuant to
Section 2.23 at the request of the U.S. Borrower for the account of
Holdings or any Subsidiary.  All U.S.
Letters of Credit will be denominated in Dollars.

 

“U.S. Obligations”
shall mean all obligations defined as “Obligations” in the U.S. Guarantee and
Collateral Agreement and the other U.S. Security Documents.

 

33

 

“U.S. Pledged
Collateral” shall mean all “Pledged Collateral” as defined in
the U.S. Guarantee and Collateral Agreement.

 

“U.S. Pro Rata
Percentage” shall mean, with respect to any U.S. Revolving
Lender at any time, the percentage of the aggregate amount of U.S. Revolving
Commitments as in effect at such time represented by such U.S. Lender’s U.S.
Revolving Commitment.  In the event that
the U.S. Revolving Commitments shall have expired or have terminated, the U.S.
Pro Rata Percentages shall be determined on the basis of the U.S. Revolving
Commitments most recently in effect.

 

“U.S. Revolving
Borrowing” shall mean a Borrowing comprised of U.S. Revolving
Loans.

 

“U.S. Revolving Commitment”
shall mean, with respect to each U.S. Revolving Lender, its commitment as set
forth on Schedule 2.01 (or in the Assignment and Acceptance pursuant to
which it assumed its U.S. Revolving Commitment) to make U.S. Revolving Loans to
the U.S. Borrower, as the same may be (a) reduced from time to time
pursuant to Section 2.09, (b) increased from time to time pursuant to
Section 2.25 or (c) reduced or increased from time to time pursuant to
assignments by or to such U.S. Revolving Lender pursuant to
Section 9.04.  The aggregate amount
of U.S. Revolving Commitments on the Closing Date is $40,000,000.

 

“U.S. Revolving Exposure”
shall mean, with respect to any U.S. Revolving Lender at any time, the sum of
(a) the aggregate principal amount at such time of all its outstanding U.S.
Revolving Loans, (b) the aggregate amount at such time of its U.S. L/C
Exposure and (c) the aggregate amount at such time of its U.S. Swingline
Exposure.

 

“U.S. Revolving Lender”
shall mean a Lender with a U.S. Revolving Commitment and/or an outstanding U.S.
Revolving Loan.

 

“U.S. Revolving Loans”
shall mean the revolving loans made by the U.S. Revolving Lenders to the U.S.
Borrower pursuant to clause (iii) of Section 2.01(a).

 

“U.S. Secured Parties”
shall have the meaning assigned to the term “Secured Parties” in the U.S.
Guarantee and Collateral Agreement.

 

“U.S. Security
Documents” shall mean the Mortgages, the U.S. Guarantee and
Collateral Agreement and each of the security agreements, mortgages and other
instruments and documents executed and delivered pursuant to any of the
foregoing or pursuant to Section 5.09, other than the European Security
Documents.

 

“U.S. Swingline
Commitment” shall mean the commitment of the Swingline Lender to
make U.S. Swingline Loans pursuant to Section 2.22, as such commitment may
be reduced from time to time pursuant to Section 2.09 or Section
2.22.  The amount of the U.S. Swingline
Commitment on the Closing Date is $6,000,000.

 

“U.S. Swingline
Exposure” shall mean, at any time, the aggregate principal
amount of all U.S. Swingline Loans outstanding at such time.  The U.S. Swingline Exposure of any U.S.

 

34

 

Revolving Lender at any time shall equal its
U.S. Pro Rata Percentage of the aggregate U.S. Swingline Exposures at such
time.

 

“U.S. Swingline Loan”
shall have the meaning assigned to such terms in Section 2.22(a).

 

“wholly owned Subsidiary”
of any person shall mean a subsidiary of such person of which securities
(except for directors’ qualifying shares) or other ownership interests
representing 100% of the Equity Interests are, at the time any determination is
being made, owned, controlled or held by such person or one or more wholly
owned Subsidiaries of such person or by such person and one or more wholly
owned Subsidiaries of such person.

 

“Withdrawal Liability”
shall mean liability to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as such terms are defined in
Part I of Subtitle E of Title IV of ERISA.

 

SECTION 1.02. 
Terms Generally.  The definitions in Section 1.01 shall
apply equally to both 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”; and the
words “asset” and “property” shall be construed as having 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.  All references herein to Articles, Sections,
Exhibits and Schedules shall be deemed references to Articles and Sections of,
and Exhibits and Schedules to, this Agreement unless the context shall
otherwise require.  Except as otherwise
expressly provided herein, (a) any reference in this Agreement to any Loan
Document shall mean such document as amended, restated, supplemented or otherwise
modified from time to time and (b) all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect from time to
time; provided, however, that if Holdings notifies the
General Administrative Agent that it wishes to amend any covenant in Article VI
or any related definition to eliminate the effect of any change in GAAP
occurring after the date of this Agreement on the operation of such covenant
(or if the General Administrative Agent notifies Holdings that the Required
Lenders wish to amend Article VI or any related definition for such purpose),
then Holdings’ compliance with such covenant shall be determined on the basis
of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant is amended in
a manner satisfactory to Holdings and the Required Lenders.

 

SECTION 1.03. 
Pro Forma Calculations.  With respect to any period during which any
Permitted Acquisition or Asset Sale occurs as permitted pursuant to the terms
hereof, the Leverage Ratio, the Interest Coverage Ratio and the Fixed Charge
Coverage Ratio shall be calculated with respect to such period and such
Permitted Acquisition or Asset Sale on a Pro Forma Basis.

 

SECTION 1.04. 
Classification of Loans and
Borrowings.  For purposes of
this Agreement, Loans may be classified and referred to by Class (e.g., a “U.S. Revolving Loan”) or by Type
(e.g., a “Eurocurrency Loan”) or
by Class and Type (e.g., a “U.S.
Eurocurrency

 

35

 

Revolving
Loan”).  Borrowings also may be
classified and referred to by Class (e.g.,
a “U.S. Revolving Borrowing”) or by Type (e.g.,
a “Eurocurrency Borrowing”) or by Class and Type (e.g., a “U.S. Eurocurrency Revolving Borrowing”).

 

SECTION 1.05. 
Exchange Rates.  On each Calculation Date, the General
Administrative Agent shall (i) determine the Exchange Rate as of such
Calculation Date with respect to each Designated Foreign Currency and (ii) give
written notice thereof to the Borrowers. 
The Exchange Rates so determined shall become effective on such
Calculation Date (a “Reset
Date”), shall remain effective until the next succeeding Reset
Date, and shall for all purposes of this Agreement (other than Section 9.05 or
any other provision expressly requiring the use of a current Exchange Rate) be
the Exchange Rates employed in converting any amounts between Dollars and
Designated Foreign Currencies.

 

SECTION 1.06. 
Redenomination of Certain Designated
Foreign Currencies.  (a) On
and after the effective date, if any, of the adoption by the United Kingdom of
the Euro as its lawful currency, each obligation of any party to this Agreement
to make a payment denominated in Sterling shall be redenominated into
Euro.  If the basis of accrual of
interest expressed in this Agreement in respect of Sterling shall be
inconsistent with any convention or practice in the London interbank market for
the basis of accrual of interest in respect of the Euro, such expressed basis
shall be replaced by such convention or practice with effect from the effective
date on which the United Kingdom adopts the Euro as its lawful currency, provided that if any Borrowing in Sterling
is outstanding immediately prior to such date, such replacement shall take
effect, with respect to such Borrowing, at the end of the then current Interest
Period.

 

(b)  Each provision of this Agreement shall be
subject to such reasonable changes of construction as the Administrative
Agents, in consultation with the Borrowers, may from time to time specify to be
appropriate to reflect the adoption of the Euro by the United Kingdom and any
relevant market conventions or practices relating to the Euro.

 

ARTICLE II

 

The Credits

 

SECTION 2.01. 
Commitments.  (a) Subject to the terms and conditions and
relying upon the representations and warranties herein set forth, (i) each
Term B-1 Lender agrees, severally and not jointly, to make a Term B-1 Loan to
the U.S. Borrower on the Closing Date, in Dollars, and in a principal amount
not to exceed its Term B-1 Commitment, (ii) each Term B-2 Lender agrees,
severally and not jointly, to make a Term B-2 Loan to the European Borrower on
the Closing Date, in Dollars, and in a principal amount not to exceed its
European Term Commitment, (iii) each U.S. Revolving Lender agrees,
severally and not jointly, to make U.S. Revolving Loans to the U.S. Borrower,
at any time and from time to time on or after the Closing Date and until the
earlier of the Revolving Credit Maturity Date and the termination of its U.S.
Revolving Commitments in accordance with the terms hereof, in Dollars, and in
an aggregate principal amount at any time outstanding that will not result in
(A) such U.S. Revolving Lender’s U.S. Revolving Exposure exceeding its
U.S. Revolving Commitment or (B) the aggregate amount of the U.S. Revolving
Exposure exceeding the aggregate amount of the U.S. Revolving

 

36

 

Commitments,
and (iv) each European Revolving Lender agrees, severally and not jointly,
to make European Revolving Loans to the U.S. Borrower or the European Borrower
in Dollars, or to the European Borrower in one or more Designated Foreign
Currencies, from time to time on or after the Closing Date and until the
earlier of the Revolving Credit Maturity Date and the termination of its European
Revolving Commitment in accordance with the terms hereof, in an aggregate
principal amount that will not result in (A) such European Revolving
Lender’s European Revolving Exposure exceeding its European Revolving
Commitment or (B) the aggregate amount of the European Revolving Exposure
exceeding the aggregate amount of the European Revolving Commitments.  Within the limits set forth in
clauses (iii) and (iv) of the preceding sentence and subject to the terms,
conditions and limitations set forth herein, the Borrowers may borrow, pay or
prepay and reborrow Revolving Loans. Amounts paid or prepaid in respect of Term
Loans may not be reborrowed.

 

(b)  Incremental Term Loans.  Each Lender having an Incremental Term Loan
Commitment hereby agrees, severally and not jointly, on the terms and subject
to the conditions set forth herein and in the applicable Incremental Term Loan
Assumption Agreement and in reliance on the representations and warranties set
forth herein and in the other Loan Documents, to make Incremental Term Loans to
the U.S. Borrower or the European Borrower, as specified in the applicable
Incremental Term Loan Assumption Agreement, in an aggregate principal amount
not to exceed its Incremental Term Commitment. 
Amounts paid or prepaid in respect of Incremental Term Loans may not be
reborrowed.

 

SECTION 2.02. 
Loans.  (a) 
Each Loan (other than Swingline Loans) shall be made as part of a
Borrowing consisting of Loans made by the Lenders ratably in accordance with
their respective applicable Term B-1 Commitments, Term B-2 Commitments, U.S.
Revolving Commitments, European Revolving Commitments or Incremental Term
Commitments, as the case may be.  The
failure of any Lender to make any Loan required to be made by it hereunder
shall not relieve any other Lender of its obligations hereunder; provided, however,
that the Commitments of the Lenders are several and no Lender shall be
responsible for any other Lender’s failure to make any Loan as required
hereunder.  Except for Swingline Loans
and Loans deemed made pursuant to Section 2.02(f), the Loans comprising
any Borrowing shall be in an aggregate principal amount that is (i) an integral
multiple of the Borrowing Multiple and not less than the Borrowing Minimum
(except with respect to any Incremental Term Borrowing, to the extent otherwise
provided in the related Incremental Term Loan Assumption Agreement) or
(ii)  equal to the remaining available balance of the applicable
Commitments.

 

(b)  Subject to Sections 2.02(f), 2.08 and 2.15,
(i) each Term Borrowing and Revolving Borrowing denominated in Dollars
shall be comprised entirely of ABR Loans or Eurocurrency Loans as the
applicable Borrower may request in accordance herewith and (ii) Revolving
Borrowings denominated in a Designated Foreign Currency shall be comprised
entirely of Eurocurrency Loans.  Each
Lender may at its option make any Eurocurrency Loan by causing any branch or
Affiliate of such Lender to make such Loan; provided, however, that any exercise
of such option shall not affect the obligation of applicable Borrower to repay
such Loan in accordance with the terms of this Agreement.  Borrowings of more than one Type may be
outstanding at the same time; provided, however, that no Borrower
shall be entitled to request any Borrowing that, if made, would result in more
than six Eurocurrency Borrowings of such Borrower being outstanding hereunder
at any time.  For purposes of the
foregoing, Borrowings

 

37

 

having
different Interest Periods, regardless of whether they commence on the same
date, shall be considered separate Borrowings.

 

(c)  Except with respect to Swingline Loans and
Loans made pursuant to Section 2.02(f), each Lender shall make each Loan
to be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds in the applicable Currency to such account as the
Applicable Administrative Agent may designate not later than 11:00 a.m., Local
Time, in the case of a Eurocurrency Borrowing, or 2:00 p.m., New York City
time, in the case of an ABR Borrowing, and the Applicable Administrative Agent
shall promptly transfer the amounts so received to the account designated by
the applicable Borrower in the applicable Borrowing Request or, if a Borrowing
shall not occur on such date because any condition precedent herein specified
shall not have been satisfied, return the amounts so received to the respective
Lenders.

 

(d)  Unless the Applicable Administrative Agent
shall have received notice from a Lender prior to the date of any Borrowing
that such Lender will not make available to such Administrative Agent such
Lender’s portion of such Borrowing, such Administrative Agent may assume that
such Lender has made such portion available to such Administrative Agent on the
date of such Borrowing in accordance with paragraph (c) above and such
Administrative Agent may, in reliance upon such assumption, make available to
the applicable Borrower on such date a corresponding amount.  If the Applicable Administrative Agent shall
have so made funds available then, to the extent that such Lender shall not
have made such portion available to such Administrative Agent, such Lender and
the applicable Borrower severally agree to repay to such Administrative Agent
forthwith on demand such corresponding amount together with interest thereon,
for each day from the date such amount is made available to such Borrower until
the date such amount is repaid to such Administrative Agent at (i) in the case
of such Borrower, the interest rate applicable at the time to the Loans
comprising such Borrowing and (ii) in the case of such Lender, a rate
determined by such Administrative Agent to represent its cost of overnight or
short-term funds in the applicable Currency (which determination shall be
conclusive absent manifest error).  If
such Lender shall repay to the Applicable Administrative Agent such
corresponding amount, such amount shall constitute such Lender’s Loan as part
of such Borrowing for purposes of this Agreement.

 

(e)  Notwithstanding any other provision of this
Agreement, the Borrowers shall not be entitled to request any Revolving
Borrowing if the Interest Period requested with respect thereto would end after
the Revolving Credit Maturity Date.

 

(f)  If the Issuing Bank shall not have received
from the applicable Borrower the payment required to be made by
Section 2.23(e) within the time specified therein (or, in the case of a
European Letter of Credit, if the European Borrower shall not have requested a
European Swingline Loan or European Revolving Loan in an amount sufficient to
repay such L/C Disbursement on or prior to the Business Day following such L/C
Disbursement), the Issuing Bank will promptly notify the Applicable
Administrative Agent of such L/C Disbursement and such Administrative Agent
will promptly notify each U.S. Revolving Lender (in the case of a U.S. L/C
Disbursement) or each European Revolving Lender (in the case of a European L/C
Disbursement), as the case may be, of such L/C Disbursement and its applicable
Pro Rata Percentage thereof.  Each such
Revolving Lender shall pay by wire transfer in immediately available funds to
the Applicable Administrative Agent (i) on the Business Day after
receiving

 

38

 

such notice,
in the case of a U.S. L/C Disbursement, or (ii) on the third Business Day
after receiving such notice, in the case of a European L/C Disbursement, an
amount equal to such Revolving Lender’s applicable Pro Rata Percentage of such
L/C Disbursement (it being understood that such amount shall be deemed to
constitute an ABR Revolving Loan (in the case of a U.S. L/C Disbursement) or a
European Revolving Loan with an Interest Period of one month (in the case of a
European L/C Disbursement), as the case may be, of such Revolving Lender and
such payment shall be deemed to have reduced the applicable L/C Exposure), and
the Applicable Administrative Agent will promptly pay to the Issuing Bank
amounts so received by it from each such Revolving Lender.  The General Administrative Agent will
promptly pay to the Issuing Bank any amounts received by it from or on behalf
of the U.S. Borrower pursuant to Section 2.23(e) prior to the time that
any U.S. Revolving Lender makes any payment pursuant to this paragraph (f); any
such amounts received by the General Administrative Agent thereafter will be
promptly remitted by the General Administrative Agent to each Revolving Lender
that shall have made such payments and to the Issuing Bank, as their interests
may appear.  If any Revolving Lender shall
not have made its Pro Rata Percentage of such L/C Disbursement available to the
Applicable Administrative Agent as provided above, such Revolving Lender and
the applicable Borrower severally agree to pay interest on such amount, for
each day from and including the date such amount is required to be paid in
accordance with this paragraph to but excluding the date such amount is paid,
to the Applicable Administrative Agent for the account of the Issuing Bank at
(i) in the case of a Borrower, a rate per annum equal to the interest rate
applicable to Revolving Loans of the related Class pursuant to
Section 2.06(a) or (b), and (ii) in the case of such Lender, for the
first such day, a rate determined by the Applicable Administrative Agent to
represent its cost of overnight funds in the relevant Currency, and for each
day thereafter, the Alternate Base Rate (for amounts denominated in Dollars) or
the European Base Rate for the applicable Designated Foreign Currency (for
amounts denominated in Designated Foreign Currencies).

 

SECTION 2.03. 
Borrowing Procedure.  In order to request a Borrowing (other than
a Swingline Loan or a deemed Borrowing pursuant to Section 2.02(f), as to
which this Section 2.03 shall not apply), a Borrower shall hand deliver or
fax to the Applicable Administrative Agent (or give telephonic notice promptly
confirmed by written notice) a duly completed Borrowing Request (a) in the
case of a Eurocurrency Borrowing, not later than 1:00 p.m., Local Time,
three Business Days before a proposed Borrowing, (b) in the case of an ABR
Borrowing, not later than 11:00 a.m., Local Time, on the day of a proposed
Borrowing, and  (c) in the case of an
EBR Borrowing, not later than 1:00 p.m., Local Time, one Business Day
before a proposed Borrowing.  Each Borrowing
Request shall be irrevocable, shall be signed by or on behalf of the applicable
Borrower and shall specify the following information:  (i) whether the Borrowing then being requested is to be a
Term B-1 Borrowing, a Term B-2 Borrowing, an Incremental Term Borrowing, a U.S.
Revolving Borrowing or a European Revolving Borrowing, and whether such
Borrowing is to be a Eurocurrency Borrowing, an ABR Borrowing or, subject to
the limitations contained in the definition thereof, an EBR Borrowing;
(ii) the date of such Borrowing (which shall be a Business Day);
(iii) the number and location of the account to which funds are to be
disbursed; (iv) the amount and Currency of such Borrowing; and (v) if
such Borrowing is to be a Eurocurrency Borrowing, the Interest Period with
respect thereto; provided, however, that, notwithstanding any
contrary specification in any Borrowing Request, each requested Borrowing shall
comply with the requirements set forth in Section 2.02.  If no Currency is specified with respect to
any requested Borrowing, then the applicable Borrower

 

39

 

shall be
deemed to have selected Dollars.  If no
election as to the Type of Borrowing is specified, then the applicable Borrower
shall be deemed to have selected (i) in the case of a Borrowing
denominated in Dollars, an ABR Borrowing, and (ii) in the case of a
Borrowing denominated in a Designated Foreign Currency, a Eurocurrency
Borrowing.  If no Interest Period is
specified with respect to any requested Eurocurrency Borrowing, then the
applicable Borrower shall be deemed to have selected an Interest Period of one
month’s duration.  The Applicable
Administrative Agent shall promptly advise the applicable Lenders of any notice
given pursuant to this Section 2.03 (and the contents thereof), and of
each Lender’s portion of the requested Borrowing.

 

SECTION 2.04. 
Evidence of Debt; Repayment of Loans.  (a) Each of the Borrowers hereby
unconditionally promises to pay to the Applicable Administrative Agent for the
account of each Lender (i) the principal amount of each Term Loan of such
Lender made to such Borrower as set forth in Section 2.11, and
(ii) the then unpaid principal amount of each Revolving Loan of such
Lender made to such Borrower on the Revolving Credit Maturity Date.  Each of the Borrowers hereby promises to pay
to the Swingline Lender the then unpaid principal amount of each Swingline Loan
made to such Borrower on the Revolving Credit Maturity Date.

 

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

 

(c)  The Applicable Administrative Agent shall
maintain accounts in which it will record (i) the amount of each Loan made
hereunder, the Class, Type and Currency thereof and, if applicable, the
Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from each of the
Borrowers to each Lender hereunder and (iii) the amount of any sum received by
such Administrative Agent hereunder from each of the Borrowers or any Guarantor
and each Lender’s share thereof.

 

(d)  The entries made in the accounts maintained
pursuant to paragraphs (b) and (c) above shall be prima facie evidence of the
existence and amounts of the obligations therein recorded; provided, however,
that the failure of any Lender or the Applicable Administrative Agent to
maintain such accounts or any error therein shall not in any manner affect the
obligations of each Borrower to repay the Loans made to it in accordance with
their terms.

 

(e)  Any Lender may request that Loans of any
Class made by it hereunder be evidenced by a promissory note.  In such event, the applicable Borrower shall
execute and deliver to such Lender a promissory note payable to such Lender
(or, if requested by such Lender, to such Lender and its registered assigns)
and in a form and substance reasonably acceptable to the General Administrative
Agent and the applicable Borrower. 
Notwithstanding any other provision of this Agreement, in the event any
Lender shall request and receive such a promissory note, the interests
represented by such note shall at all times (including after any assignment of
all or part of such interests pursuant to Section 9.04) be represented by
one or more promissory notes payable to the payee named therein or its
registered assigns.

 

40

 

SECTION 2.05. 
Fees.  (a) 
The U.S. Borrower agrees to pay to the General Administrative Agent for
the account of each U.S. Revolving Lender a facility fee equal to 0.50% per
annum on the daily amount of the U.S. Revolving Commitments of such Lender (whether used or unused) during the
preceding quarter (or other period commencing with the Closing Date or ending
with the earlier of the Revolving Credit Maturity Date or the date on which the
U.S. Revolving Commitment of such Lender shall expire or be terminated).  The European Borrower agrees to pay to the
European Administrative Agent for the account of each European Revolving Lender
a facility fee (together with the fee referred to in the preceding sentence,
the “Facility Fees”)
equal to 0.50% per annum on the daily amount of the European Revolving
Commitments of such Lender (whether used or unused) during the preceding
quarter (or other period commencing with the Closing Date or ending with the
earlier of the Revolving Credit Maturity Date or the date on which the European
Revolving Commitment of such Lender shall expire or be terminated).  Notwithstanding the foregoing, if any Lender
continues to have any Revolving Exposure of any Class after its Commitment with respect to such Class terminates, then the Facility Fee
shall continue to accrue on the daily amount of such Lender’s Revolving
Exposure of such Class to but
excluding the date on which such Lender ceases to have any such Revolving
Exposure.  Accrued Facility Fees with
respect to any Class of Revolving Commitments shall be payable in arrears on
the last Business Day of March, June, September and December of each year,
commencing on the first such date to occur after the Closing Date, and on the
date on which all Revolving Commitments of such Class shall have terminated and
the Lenders shall have no further Revolving Exposures of such Class.  All Facility Fees shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

 

(b)  The Borrowers agree to pay to the General
Administrative Agent, for its own account, the administration fees set forth in
the Fee Letter at the times and in the amounts specified therein (the “Administrative Agent Fees”).

 

(c)  The U.S. Borrower agrees to pay to each U.S.
Revolving Lender, through the General Administrative Agent, on the last
Business Day of March, June, September and December of each year, commencing on
the first such date to occur after the Closing Date, and on the date on which
the U.S. Revolving Commitment of such Lender shall expire or be terminated as
provided herein, a fee calculated on such Lender’s U.S. Pro Rata Percentage of
the daily aggregate U.S. L/C Exposures (excluding the portion thereof
attributable to unreimbursed U.S. L/C Disbursements) during the preceding
quarter (or shorter period commencing with the Closing Date or ending with the
earlier of the Revolving Credit Maturity Date or the date on which all U.S.
Letters of Credit have been canceled or have expired and the U.S. Revolving
Commitments shall have been terminated) at a rate per annum equal to the
Applicable Percentage from time to time used to determine the interest rate on
Eurocurrency Revolving Borrowings pursuant to Section 2.06.  The European Borrower agrees to pay to each
European Revolving Lender, through the European Administrative Agent, on the
last Business Day of March, June, September and December of each year,
commencing on the first such date to occur after the Closing Date, and on the
date on which the European Revolving Commitment of such Lender shall expire or
be terminated as provided herein, a fee (together with the fee referred to in
the preceding sentence, the “L/C Participation Fees”)
calculated on such Lender’s European Pro Rata Percentage of the daily aggregate
European L/C Exposures (excluding the portion thereof attributable to
unreimbursed European L/C Disbursements) during the preceding quarter (or
shorter period

 

41

 

commencing
with the Closing Date or ending with the earlier of the Revolving Credit
Maturity Date or the date on which all European Letters of Credit have been canceled
or have expired and the European Revolving Commitments shall have been
terminated) at a rate per annum equal to the Applicable Percentage from time to
time used to determine the interest rate on Eurocurrency Revolving Borrowings
pursuant to Section 2.06.  Each Borrower
agrees to pay to the Issuing Bank with respect to each Letter of Credit issued
at the request of such Borrower the fronting, issuance and drawing fees
separately agreed upon from time to time between such Borrower and the Issuing
Bank (the “Issuing Bank Fees”).  All L/C Participation Fees and Issuing Bank
Fees shall be computed on the basis of the actual number of days elapsed in a
year of 360 days.

 

(d)  All Fees shall be paid on the dates due, in
immediately available funds, to the Applicable Administrative Agent for
distribution, if and as appropriate, among the Lenders, except that the Issuing
Bank Fees shall be paid directly to the Issuing Bank.  All Facility Fees shall be payable in Dollars.  All L/C Participation Fees and Issuing Bank
Fees shall be payable in the Currencies of the related Letters of Credit.  Once paid, none of the Fees shall be
refundable under any circumstances.

 

SECTION 2.06. 
Interest on Loans.  (a) Subject to the provisions of
Section 2.07, the Loans comprising each ABR Borrowing, each U.S. Swingline
Loan and each European Swingline Loan denominated in Dollars shall bear
interest (computed on the basis of the actual number of days elapsed over a
year of 365 or 366 days, as the case may be, when the Alternate Base Rate is
determined by reference to the Prime Rate and over a year of 360 days at all
other times and calculated from and including the date of such Borrowing to but
excluding the date of repayment thereof) at a rate per annum equal to the
Alternate Base Rate plus the Applicable Percentage in effect from time to time.

 

(b)  Subject to the provisions of Section 2.07,
the Loans comprising each EBR Borrowing and each European Swingline Loan
denominated in a Designated Foreign Currency, shall bear interest (computed on
the basis of the actual number of days elapsed over a year of 365 or 366 days,
as the case may be, calculated from and including the date of such Loan to but
excluding the date of repayment thereof) at a rate per annum equal to the
European Base Rate plus the Applicable Percentage in effect from time to time.

 

(c)  Subject to the provisions of
Section 2.07, the Loans comprising each Eurocurrency Borrowing shall bear
interest (computed on the basis of the actual number of days elapsed over a
year of 360 days) at a rate per annum equal to the Adjusted LIBO Rate for the
Interest Period in effect for such Borrowing plus the Applicable Percentage in
effect from time to time.

 

(d)  Interest on each Loan shall be payable to
the Applicable Administrative Agent on the Interest Payment Dates applicable to
such Loan except as otherwise provided in this Agreement.  The applicable Alternate Base Rate, Adjusted
LIBO Rate or European Base Rate for each Interest Period or day within an
Interest Period, as the case may be, shall be determined by the Applicable
Administrative Agent, and such determination shall be conclusive absent
manifest error.

 

SECTION 2.07. 
Default Interest.  Any amount (whether of principal, interest,
Fees or otherwise) not paid by the applicable Borrower when due hereunder or
under any other Loan

 

42

 

Document shall
bear interest, to the extent permitted by law (after as well as before
judgment), payable on demand, (a) in the case of principal, at the rate
otherwise applicable thereto pursuant to Section 2.06 plus 2.00% per annum
and (b) in all other cases, at a rate per annum (computed on the basis of the
actual number of days elapsed over a year of 365 or 366 days, as the case may
be, when determined by reference to the Prime Rate and over a year of 360 days
at all other times) equal to the rate that would be applicable to an ABR Term
Borrowing plus 2.00% per annum.

 

SECTION 2.08. 
Alternate Rate of Interest.  In the event, and on each occasion, that on
the day two Business Days prior to the commencement of any Interest Period for
a Eurocurrency Borrowing the Applicable Administrative Agent shall have
determined that deposits in the principal amounts of the Loans comprising such
Borrowing are not generally available in the London interbank market, or that
the rates at which such deposits are being offered will not adequately and
fairly reflect the cost to any Lender of making or maintaining its Eurocurrency
Loan during such Interest Period, or that reasonable means do not exist for
ascertaining the Adjusted LIBO Rate, the Applicable Administrative Agent shall,
as soon as practicable thereafter, give written or fax notice of such
determination to the Borrowers and the Lenders.  In the event of any such determination, until the Applicable
Administrative Agent shall have advised the Borrowers and the Lenders that the
circumstances giving rise to such notice no longer exist, any request by a
Borrower for a Eurocurrency Borrowing pursuant to Section 2.03 or 2.10
shall be deemed to be (a) a request for an ABR Borrowing, if such Borrowing is
denominated in Dollars, or (b) a request for an EBR Borrowing, if such
Borrowing is denominated in a Designated Foreign Currency.  Each determination by the Applicable
Administrative Agent under this Section 2.08 shall be conclusive absent
manifest error.

 

SECTION 2.09. 
Termination and Reduction of
Commitments.  (a) The Term
Loan Commitments shall automatically terminate at 5:00 p.m., New York City
time, on the Closing Date. The Revolving Commitments, the Swingline Commitments
and the L/C Commitments shall automatically terminate on the Revolving Credit
Maturity Date.  Notwithstanding the
foregoing, all the Commitments shall automatically terminate at 5:00 p.m., New
York City time, on January 31, 2004, if the initial Credit Event shall not have
occurred by such time.

 

(b)  Upon at least three Business Days’ prior
irrevocable written or fax notice (or telephonic notice promptly confirmed by
written notice) to the Applicable Administrative Agent, either Borrower may at
any time in whole permanently terminate, or from time to time in part
permanently reduce, the Term Loan Commitments or the Revolving Commitments
extended to such Borrower; provided,
however, that (i) each partial
reduction of any Term Loan Commitments or any Revolving Commitments shall be in
an integral multiple of $500,000 and in a minimum amount of $2,500,000,
(ii) the U.S. Revolving Commitments shall not be reduced to an amount that
is less than the aggregate U.S. Revolving Exposure at the time, and (iii) the
European Revolving Commitments shall not be reduced to an amount that is less
than the aggregate European Revolving Exposure at the time.

 

(c)  Each reduction in Term Loan Commitments or
Revolving Commitments of a Class hereunder shall be made ratably among the
Lenders in accordance with their respective Commitments of the applicable
Class.  The applicable Borrower shall
pay to the Applicable Administrative Agent for the account of the applicable
Lenders, on the date of each termination

 

43

 

or reduction
of any Revolving Commitments, the Facility Fees on the amount of the
Commitments so terminated or reduced accrued to but excluding the date of such
termination or reduction.

 

SECTION 2.10. 
Conversion and Continuation of
Borrowings.  The Borrowers
shall have the right at any time upon prior irrevocable notice to the
Applicable Administrative Agent (a) not later than 1:00 p.m., Local
Time, on the day of conversion, to convert any Eurocurrency Borrowing
denominated in Dollars into an ABR Borrowing, (b) not later than
1:00 p.m., Local Time, three Business Days prior to conversion or
continuation, to convert any ABR Borrowing into a Eurocurrency Borrowing or to
continue any Eurocurrency Borrowing as a Eurocurrency Borrowing for an
additional Interest Period and (c) not later than 1:00 p.m., Local
Time, three Business Days prior to conversion, to convert the Interest Period
with respect to any Eurocurrency Borrowing to another permissible Interest
Period, subject in each case to the following:

 

(i) each conversion
or continuation shall be made pro rata among the applicable Lenders in
accordance with the respective principal amounts of the Loans comprising the
converted or continued Borrowing;

 

(ii) if less than all
the outstanding principal amount of any Borrowing shall be converted or
continued, then each resulting Borrowing shall satisfy the limitations
specified in Sections 2.02(a) and 2.02(b) regarding the principal amount and
maximum number of Borrowings of the relevant Type;

 

(iii) each conversion
shall be effected by each applicable Lender and the Applicable Administrative
Agent by recording for the account of such Lender the new Loan of such Lender
resulting from such conversion and reducing the Loan (or portion thereof) of
such Lender being converted by an equivalent principal amount; accrued interest
on any Eurocurrency Loan (or portion thereof) being converted shall be paid by
the applicable Borrower at the time of conversion;

 

(iv) if any
Eurocurrency Borrowing is converted at a time other than the end of the
Interest Period applicable thereto, the applicable Borrower shall pay, upon
demand, any amounts due to the Lenders pursuant to Section 2.16;

 

(v) any portion of a
Borrowing maturing or required to be repaid in less than one month may not be
converted into or continued as a Eurocurrency Borrowing;

 

(vi) any portion of a
Eurocurrency Borrowing that cannot be converted into or continued as a
Eurocurrency Borrowing by reason of the immediately preceding clause shall be
automatically converted at the end of the Interest Period in effect for such
Borrowing into an ABR Borrowing or an EBR Borrowing;

 

(vii) no Interest
Period may be selected for any Eurocurrency Term Borrowing that would end later
than a Repayment Date occurring on or after the first day of such Interest
Period if, after giving effect to such selection, the aggregate outstanding
amount of (A) the Eurocurrency Term Borrowings with Interest Periods ending
on or prior to

 

44

 

such Repayment Date and (B) the ABR Term
Borrowings would not be at least equal to the principal amount of Term
Borrowings to be paid on such Repayment Date; and

 

(viii) upon notice to
the Borrowers from the General Administrative Agent given at the request of the
Required Lenders, after the occurrence and during the continuance of a Default
or Event of Default, (A) no outstanding Borrowing denominated in Dollars may be
converted into, or continued as, a Eurocurrency Borrowing, (B) unless repaid,
each Eurocurrency Borrowing denominated in Dollars shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto and (C) no
Interest Period in excess of one month may be selected for any Borrowing
denominated in a Designated Foreign Currency.

 

Each notice pursuant to this Section 2.10 shall be irrevocable and
shall refer to this Agreement and specify (i) the identity and amount of the
Borrowing that the applicable Borrower requests be converted or continued, (ii)
whether such Borrowing is to be converted to or continued as a Eurocurrency
Borrowing, an ABR Borrowing or, to the extent required by
Section 2.10(vi), an EBR Borrowing, (iii) if such notice requests a conversion,
the date of such conversion (which shall be a Business Day) and (iv) if such
Borrowing is to be converted to or continued as a Eurocurrency Borrowing, the
Interest Period with respect thereto. 
If no Interest Period is specified in any such notice with respect to
any conversion to or continuation as a Eurocurrency Borrowing, the applicable
Borrower shall be deemed to have selected an Interest Period of one month’s
duration.  The Applicable Administrative
Agent shall advise the applicable Lenders of any notice given pursuant to this
Section 2.10 and of each Lender’s portion of any converted or continued
Borrowing.  If the applicable Borrower
shall not have given notice in accordance with this Section 2.10 to continue
any Eurocurrency Borrowing into a subsequent Interest Period (and shall not
otherwise have given notice in accordance with this Section 2.10 to convert
such Borrowing), such Borrowing shall, at the end of the Interest Period
applicable thereto (unless repaid pursuant to the terms hereof) (i) in the case
of a Borrowing denominated in Dollars, automatically be continued as an ABR
Borrowing, and (ii) in the case of a Borrowing denominated in a Designated
Foreign Currency, automatically be continued into a new Eurocurrency Borrowing
with an Interest Period of one month. 
Notwithstanding any contrary provisions herein, the Currency of an
outstanding Borrowing may not be changed in connection with any conversion or
continuation of such Borrowing.

 

SECTION 2.11. 
Repayment of Term Borrowings.  (a) (i)  The U.S. Borrower shall
pay to the General Administrative Agent, for the account of the Term B-1
Lenders, on the dates set forth below, or if any such date is not a Business
Day, on the next preceding Business Day (each such date being called a “Repayment Date”), a
principal amount of the Term B-1 Loans (as adjusted from time to time pursuant
to Sections 2.11(c), 2.12, 2.13(f) and 2.24(d)) equal to the amount set
forth below for such date, together in each case with accrued and unpaid
interest on the principal amount to be paid to but excluding the date of such
payment:

 

45

 

	
  Repayment Date

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31, 2004

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  June, 30, 2004

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  September 30, 2004

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  December 31, 2004

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  March 31, 2005

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  June 30, 2005

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  September 30, 2005

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  December 31, 2005

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  March 31, 2006

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  September 30, 2006

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  December 31, 2006

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  March 31, 2007

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  September 30, 2007

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  March 31, 2008

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  September 30, 2008

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  March 31, 2009

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  September 30, 2009

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  December 31, 2009

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  March 31, 2010

  	
   

  	
  $

  	
  47,000,000

  	
   

  
	
  June 30, 2010

  	
   

  	
  $

  	
  47,000,000

  	
   

  
	
  September 30, 2010

  	
   

  	
  $

  	
  47,000,000

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  $

  	
  47,000,000

  	
   

  

 

(ii)  The European Borrower
shall pay to the General Administrative Agent, for the account of the Term B-2
Lenders, on the Repayment Dates set forth below, a principal amount of the Term
B-2 Loans (as adjusted from time to time pursuant to Sections 2.11(c), 2.12,
2.13(f) and 2.24(d)) equal to the amount set forth below for such date,
together in each case with accrued and unpaid interest on the principal amount
to be paid to but excluding the date of such payment:

 

46

 

	
  Repayment Date

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31, 2004

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  June, 30, 2004

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  September 30, 2004 

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  December 31, 2004 

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  March 31, 2005

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  June 30, 2005

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  September 30, 2005

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  December 31, 2005

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  March 31, 2006

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  September 30, 2006

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  December 31, 2006

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  March 31, 2007

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  September 30, 2007

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  March 31, 2008

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  September 30, 2008

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  March 31, 2009

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  September 30, 2009

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  December 31, 2009

  	
   

  	
  $

  	
  75,000

  	
   

  
	
  March 31, 2010

  	
   

  	
  $

  	
  7,050,000

  	
   

  
	
  June 30, 2010

  	
   

  	
  $

  	
  7,050,000

  	
   

  
	
  September 30, 2010

  	
   

  	
  $

  	
  7,050,000

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  $

  	
  7,050,000

  	
   

  

 

(b)  The applicable Borrower shall pay to the
Applicable Administrative Agent, for the account of the applicable Lenders, on
each Incremental Term Loan Repayment Date, a principal amount of the Other Term
Loans (as adjusted from time to time pursuant to Sections 2.11(c), 2.12
and 2.13(f)) equal to the amount set forth for such date in the applicable
Incremental Term Loan Assumption Agreement, together in each case with accrued
and unpaid interest on the principal amount to be paid to but excluding the
date of such payment.

 

(c)  In the event and on each occasion that the
Term Loan Commitments of any Class shall be reduced or shall expire or
terminate other than as a result of the making of a Term Loan, the installments
payable on each Repayment Date with respect to such Class shall be reduced pro
rata by an aggregate amount equal to the amount of such reduction, expiration
or termination.

 

(d)  To the extent not previously paid, all Term
Loans shall be due and payable on the Term Loan Maturity Date and all
Incremental Term Loans shall be due and payable on the applicable Incremental
Term Loan Maturity Date, together in each case with accrued and unpaid interest
on the principal amount to be paid to but excluding the date of payment.

 

(e)  All repayments pursuant to this Section 2.11
shall be subject to Section 2.16, but shall otherwise be without premium or
penalty.

 

SECTION 2.12. 
Optional Prepayments.  (a) The Borrowers shall have the right at any
time and from time to time to prepay any Borrowing, in whole or in part, upon
(i) at least three Business Days’ prior written or fax notice (or
telephonic notice promptly confirmed by written or fax notice) in the case of
Eurocurrency Loans, (ii) written or fax notice (or telephonic notice promptly
confirmed by written or fax notice) on the same Business Day in respect of ABR
Loans and (iii) at least one Business Day’s prior written or fax notice
(or telephonic notice promptly confirmed by written or fax notice) in the case
of EBR Loans, in each case to the Applicable Administrative Agent before 12:00
(noon), Local Time, on the relevant date; provided,
however,

 

47

 

that each
partial prepayment shall be in an amount that is an integral multiple of the
Borrowing Multiple and not less than the Borrowing Minimum.

 

(b)  Optional prepayments of Term Loans shall be
allocated among the Term B-1 Loans, the Term B-2 Loans and the Other Term
Loans, if any, as determined by Holdings, and shall be applied first, in
chronological order to the installments of principal in respect of such Term
Loans scheduled to be paid within 12 months after such optional prepayment
and second, pro rata against the remaining scheduled installments of principal
due in respect of the such Term Loans.

 

(c)  Each notice of prepayment shall specify the
prepayment date and the Class and principal amount of each Borrowing (or
portion thereof) to be prepaid, shall be irrevocable and shall commit the
applicable Borrower to prepay such Borrowing by the amount stated therein on
the date stated therein.  All
prepayments under this Section 2.12 shall be subject to Section 2.16, but shall
otherwise be without premium or penalty. 
All prepayments under this Section 2.12 (other than prepayments of ABR
Revolving Loans or EBR Revolving Loans that are not made in connection with the
termination or permanent reduction of the U.S. Revolving Commitments or the
European Revolving Commitments, respectively) shall be accompanied by accrued
and unpaid interest on the principal amount to be prepaid to but excluding the
date of payment.

 

SECTION 2.13. 
Mandatory Prepayments.  (a) In the event of any termination of all
the Revolving Commitments of a Class, the applicable Borrower shall, on the
date of such termination, repay or prepay all its outstanding Revolving
Borrowings and all its outstanding Swingline Loans and replace all outstanding
Letters of Credit issued at its request or for its account (or enter into other
arrangements reasonably satisfactory to the applicable Issuing Bank with
respect thereto).  If, as a result of
any partial reduction of the Revolving Commitments of a Class, the aggregate
Revolving Exposure of such Class would exceed the total Revolving Commitment of
such Class after giving effect thereto, then the applicable Borrower shall, on
the date of such reduction, repay or prepay its Revolving Borrowings or
Swingline Loans (or a combination thereof) and/or replace outstanding Letters
of Credit issued at its request or for its account (or enter into other
arrangements reasonably satisfactory to the applicable Issuing Bank with
respect thereto) in an amount sufficient to eliminate such excess.  If, as a result of fluctuations in Exchange
Rates, the aggregate European Revolving Exposure on any Reset Date would exceed
105% of the aggregate European Revolving Commitments on such date, then the
European Borrower shall, within three Business Days thereof, repay or prepay
European Revolving Loans and/or European Swingline Loans so that, after giving
effect thereto, the aggregate European Revolving Exposure would not exceed the
aggregate European Revolving Commitments. 
If at any time Holdings ceases to own, directly or indirectly,
beneficially and of record, 100% of the issued and outstanding Equity Interests
of the European Borrower, (i) the European Borrower shall immediately cease to
be permitted to request European Revolving Loans, European Swingline Loans and
European Letters of Credit (and thereafter any European Revolving Loans shall
only be made to the U.S. Borrower in Dollars), (ii) the European Borrower shall
promptly (and in any event within one Business Day) prepay all outstanding Term
B-2 Loans, European Revolving Loans made to it and European Swingline Loans (in
each case, together with accrued interest thereon), shall replace all
outstanding European Letters of Credit (or enter into other arrangements
reasonably satisfactory to the applicable Issuing Bank with respect thereto)
(it being understood that any such Letter of Credit that is denominated in

 

48

 

Dollars shall
not be required to be replaced so long as the U.S. Borrower would be permitted
to request the issuance of such Letter of Credit and in such event such Letter
of Credit shall be deemed to constitute a U.S. Letter of Credit hereunder) and
shall pay all accrued and unpaid Fees and expenses with respect to the European
Revolving Commitments and the European Letters of Credit and (iii) thereafter,
all Facility Fees in respect of the European Revolving Commitments shall be
payable by the U.S. Borrower.

 

(b)  Not later than the fifth Business Day
following the completion of any Asset Sale, the Borrowers shall apply an amount
equal to 100% of the Net Cash Proceeds received with respect thereto to prepay
outstanding Term Loans in accordance with Section 2.13(f).

 

(c)  If, at the time of any Equity Issuance, the
Leverage Ratio (after giving effect to such Equity Issuance and the proposed
use of the proceeds thereof) would be equal to or greater than 3.00 to 1.00,
the Borrowers shall, substantially simultaneously with (and in any event not
later than the fifth Business Day next following) the occurrence of such Equity
Issuance, apply an amount equal to 50% of the Net Cash Proceeds therefrom (or
such lesser percentage as shall be necessary to reduce the Leverage Ratio to
less than 3.00 to 1.00, after giving effect to such Equity Issuance and the
proposed use of the proceeds thereof) to prepay outstanding Term Loans in
accordance with Section 2.13(f).

 

(d)  If the Leverage Ratio as of the end of any
fiscal year of Holdings, commencing with the fiscal year ending on March 31,
2005, shall have been equal to or greater than 3.00 to 1.00, no later than the
earlier of (i) 95 days after the end of such fiscal year and (ii) the
fifth Business Day after the financial statements with respect to such period
are delivered pursuant to Section 5.04(a), the Borrowers shall prepay
outstanding Term Loans in accordance with Section 2.13(f) in an aggregate
principal amount equal to 50% of Excess Cash Flow for the fiscal year then
ended.

 

(e)  In the event that Holdings or any Subsidiary
shall receive Net Cash Proceeds from (i) the issuance of Indebtedness for
money borrowed (other than Indebtedness for money borrowed permitted pursuant
to Section 6.01, except for Indebtedness incurred pursuant to Section 6.01(i)
to the extent the proceeds thereof are not applied to finance the cash
consideration payable in a Permitted Acquisition (including the refinancing of
Indebtedness of the Acquired Entity and the payment of related fees and
expenses), cash Capital Expenditures or other investments in accordance with
the terms of Section 6.01(i)), or (ii) the initial transfer of Receivables
in connection with the establishment of the Receivables Program (and any
subsequent transfer of Receivables in connection with or that results in an
increase in the maximum aggregate outstanding funded amount of the Receivables
Program), the Borrowers shall, substantially simultaneously with (and in any
event not later than the fifth Business Day next following) the receipt of such
Net Cash Proceeds by Holdings or such Subsidiary, apply an amount equal to 100%
of such Net Cash Proceeds to prepay outstanding Term Loans in accordance with
Section 2.13(f).

 

(f)  Mandatory prepayments of outstanding Term
Loans under this Agreement shall be allocated ratably among the Term B-1 Loans,
the Term B-2 Loans and the Other Term Loans, if any, and shall be applied pro
rata against the remaining scheduled installments of principal due in respect
of the Term B-1 Loans, the Term B-2 Loans and Other Term Loans under

 

49

 

Section 2.11;
provided,
however,
that, if such mandatory prepayment was required under Section 2.13(b) or
clause (ii) of Section 2.13(e) as the result of an Asset Sale of
assets of the European Borrower or a Subsidiary of the European Borrower, then
the Borrowers may, in their sole discretion, elect to allocate the Net Cash
Proceeds thereof first to the prepayment of Term B-2 Loans.

 

(g)  Holdings shall give prior written notice of
any prepayment required under this Section 2.13 as far in advance thereof as is
reasonably practicable (and in any event at least one Business Day prior
thereto), and deliver to the Applicable Administrative Agent, at the time of
the making of each such prepayment, a certificate signed by a Financial Officer
of Holdings setting forth in reasonable detail the calculation of the amount of
such prepayment.  Each notice of
prepayment shall specify the prepayment date, the Class and Type of each Loan
being prepaid and the principal amount of each Loan (or portion thereof) to be
prepaid.  All prepayments of Borrowings
under this Section 2.13 shall be subject to Section 2.16, but shall otherwise
be without premium or penalty.

 

SECTION 2.14. 
Reserve Requirements; Change in
Circumstances.  (a)
Notwithstanding any other provision of this Agreement, if any Change in Law
shall impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of or credit
extended by any Lender or Issuing Bank (except any such reserve requirement
which is reflected in the Adjusted LIBO Rate) or shall impose on such Lender or
Issuing Bank or the London interbank market any other condition affecting this
Agreement or Eurocurrency Loans made by such Lender or any Letter of Credit or
participation therein, and the result of any of the foregoing shall be to
increase the cost to such Lender or such Issuing Bank of making or maintaining
any Eurocurrency Loan or increase the cost to any Lender or Issuing Bank of
issuing or maintaining any Letter of Credit or purchasing or maintaining a
participation therein or to reduce the amount of any sum received or receivable
by such Lender or Issuing Bank hereunder (whether of principal, interest or
otherwise), in each case, by an amount deemed by such Lender or Issuing Bank to
be material, then the applicable Borrower will pay to such Lender or Issuing
Bank, as the case may be, upon demand such additional amount or amounts as will
compensate such Lender or Issuing Bank, as the case may be, for such additional
costs incurred or reduction suffered.

 

(b)  If any Lender or Issuing Bank shall have
determined that any Change in Law regarding capital adequacy has or would have
the effect of reducing the rate of return on such Lender’s or Issuing Bank’s
capital or on the capital of such Lender’s or Issuing Bank’s holding company,
if any, as a consequence of this Agreement or the Loans made or participations
in Letters of Credit purchased by such Lender pursuant hereto or the Letters of
Credit issued by such Issuing Bank pursuant hereto to a level below that which
such Lender or Issuing Bank or such Lender’s or Issuing Bank’s holding company
could have achieved but for such Change in Law (taking into consideration such
Lender’s or Issuing Bank’s policies and the policies of such Lender’s or Issuing
Bank’s holding company with respect to capital adequacy) by an amount deemed by
such Lender or Issuing Bank to be material, then from time to time the
applicable Borrower shall pay to such Lender or Issuing Bank, as the case may
be, such additional amount or amounts as will compensate such Lender or Issuing
Bank or such Lender’s or Issuing Bank’s holding company for any such reduction
suffered.

 

50

 

(c)  A certificate of a Lender or Issuing Bank
setting forth the amount or amounts necessary to compensate such Lender or
Issuing Bank or its holding company, as applicable, as specified in paragraph
(a) or (b) above shall be delivered to the applicable Borrower and shall be
conclusive absent manifest error.  The
applicable Borrower shall pay such Lender or Issuing Bank the amount shown as
due on any such certificate delivered by it within 10 Business Days after its
receipt of the same.

 

(d)  Failure or delay on the part of any Lender
or Issuing Bank to demand compensation for any increased costs or reduction in
amounts received or receivable or reduction in return on capital shall not
constitute a waiver of such Lender’s or Issuing Bank’s right to demand such
compensation; provided, however, that no Borrower shall be under
any obligation to compensate any Lender or Issuing Bank under paragraph (a) or
(b) above with respect to increased costs or reductions with respect to any
period prior to the date that is 120 days prior to such request if such Lender
or Issuing Bank knew or could reasonably have been expected to know of the
circumstances giving rise to such increased costs or reductions and of the fact
that such circumstances would result in a claim for increased compensation by
reason of such increased costs or reductions; provided further, that the
foregoing limitation shall not apply to any increased costs or reductions
arising out of the retroactive application of any Change in Law within such
120-day period.  The protection of this
Section shall be available to each Lender and Issuing Bank regardless of any
possible contention of the invalidity or inapplicability of the Change in Law
that shall have occurred or been imposed.

 

SECTION 2.15. 
Change in Legality.  (a) Notwithstanding any other provision of
this Agreement, if any Change in Law shall make it unlawful for any Lender to
make or maintain any Eurocurrency Loan or to give effect to its obligations as
contemplated hereby with respect to any Eurocurrency Loan, then, by written
notice to the Borrowers and to the Applicable Administrative Agent:

 

(i) such Lender may
declare that Eurocurrency Loans will not thereafter (for the duration of such
unlawfulness) be made by such Lender hereunder (or be continued for additional
Interest Periods and ABR Loans and EBR Loans will not thereafter (for such
duration) be converted into Eurocurrency Loans), whereupon any request for a
Eurocurrency Borrowing (or to convert an ABR Borrowing or an EBR Borrowing to a
Eurocurrency Borrowing or to continue a Eurocurrency Borrowing for an
additional Interest Period) shall, as to such Lender only, be deemed a request
for an ABR Loan or an EBR Loan, as the case may be (or a request to continue an
ABR Loan or an EBR Loan, as the case may be, as such, or to convert a
Eurocurrency Loan into an ABR Loan or an EBR Loan, as the case may be), unless
such declaration shall be subsequently withdrawn; and

 

(ii) such Lender may
require that all outstanding Eurocurrency Loans made by it be converted to ABR
Loans (if denominated in Dollars) or EBR Loans (if denominated in a Designated
Foreign Currency), in which event all such Eurocurrency Loans shall be
automatically converted to ABR Loans or EBR Loans, as the case may be, as of
the effective date of such notice as provided in paragraph (b) below.

 

51

 

In the event
any Lender shall exercise its rights under (i) or (ii) above, all payments and
prepayments of principal that would otherwise have been applied to repay the
Eurocurrency Loans that would have been made by such Lender or the converted
Eurocurrency Loans of such Lender shall instead be applied to repay the ABR
Loans and EBR Loans made by such Lender in lieu of, or resulting from the
conversion of, such Eurocurrency Loans.

 

(b)  For purposes of this Section 2.15, a notice
to the Borrowers by any Lender shall be effective as to each Eurocurrency Loan
made by such Lender, if lawful, on the last day of the Interest Period then
applicable to such Eurocurrency Loan; in all other cases such notice shall be
effective on the date of receipt by the Borrowers.

 

SECTION 2.16. 
Indemnity.  The Borrowers shall indemnify each Lender
against any loss (other than loss of margin) or expense that such Lender may
sustain or incur as a consequence of (a) any event, other than a default
by such Lender in the performance of its obligations hereunder, which results
in (i) such Lender receiving or being deemed to receive any amount on
account of the principal of any Eurocurrency Loan prior to the end of the
Interest Period in effect therefor, (ii) the conversion of any
Eurocurrency Loan to an ABR Loan or an EBR Loan, or the conversion of the
Interest Period with respect to any Eurocurrency Loan, in each case other than
on the last day of the Interest Period in effect therefor, or (iii) any
Eurocurrency Loan to be made by such Lender (including any Eurocurrency Loan to
be made pursuant to a conversion or continuation under Section 2.10) not
being made after notice of such Loan shall have been given by a Borrower hereunder
(any of the events referred to in this clause (a) being called a “Breakage Event”) or
(b) any default in the making of any payment or prepayment required to be
made hereunder.  In the case of any
Breakage Event, such loss shall include an amount equal to the excess, as
reasonably determined by such Lender, of (i) its cost of obtaining funds
for the Eurocurrency Loan that is the subject of such Breakage Event for the
period from the date of such Breakage Event to the last day of the Interest
Period in effect (or that would have been in effect) for such Loan over
(ii) the amount of interest likely to be realized by such Lender in
redeploying the funds released or not utilized by reason of such Breakage Event
for such period.  A certificate of any
Lender setting forth any amount or amounts which such Lender is entitled to
receive pursuant to this Section 2.16 shall be delivered to the applicable
Borrower and shall be conclusive absent manifest error.

 

SECTION 2.17. 
Pro Rata Treatment.  Except as provided below in this Section
2.17 with respect to Swingline Loans and as required under Section 2.15, each
Borrowing, each payment or prepayment of principal of any Borrowing, each
payment of interest on the Loans, each payment of the Facility Fees or the L/C
Participation Fees, each reduction of the Term Loan Commitments or the
Revolving Commitments and each conversion of any Borrowing to or continuation
of any Borrowing as a Borrowing of any Type shall be allocated pro rata among
the Lenders in accordance with their respective applicable Commitments (or, if
such Commitments shall have expired or been terminated, in accordance with the
respective principal amounts of their outstanding Loans or participations in
L/C Disbursements, as applicable).  For
purposes of determining the available U.S. Revolving Commitments and European
Revolving Commitments of the Lenders at any time, each outstanding U.S.
Swingline Loan and European Swingline Loan shall be deemed to have utilized the
U.S. Revolving Commitments and European Revolving Commitments, respectively, of
the Lenders (including those Lenders which shall not have made Swingline Loans)
pro rata in accordance with such respective Revolving Commitments.  Each

 

52

 

Lender agrees
that in computing such Lender’s portion of any Borrowing to be made hereunder,
the Applicable Administrative Agent may, in its discretion, round each Lender’s
percentage of such Borrowing to the next higher or lower whole dollar amount.

 

SECTION 2.18. 
Sharing of Setoffs.  Each Lender agrees that if it shall, through
the exercise of a right of banker’s lien, setoff or counterclaim against either
Borrower or any other Loan Party, or pursuant to a secured claim under Section
506 of Title 11 of the United States Code or other security or interest arising
from, or in lieu of, such secured claim, received by such Lender under any
applicable bankruptcy, insolvency or other similar law or otherwise, or by any
other means, obtain payment (voluntary or involuntary) in respect of any Loan
or L/C Disbursement as a result of which the unpaid portion of its Loans and
participations in L/C Disbursements shall be proportionately less than the
unpaid portion of the Loans and participations in L/C Disbursements of any
other Lender, it shall be deemed simultaneously to have purchased from such
other Lender at face value, and shall promptly pay to such other Lender the
purchase price for, a participation in the Loans and L/C Exposure of such other
Lender, so that the aggregate unpaid amount of the Loans and L/C Exposure and
participations in Loans and L/C Exposure held by each Lender shall be in the
same proportion to the aggregate unpaid amount of all Loans and L/C Exposure
then outstanding as the amount of its Loans and L/C Exposure prior to such
exercise of banker’s lien, setoff or counterclaim or other event was to the
amount of all Loans and L/C Exposure outstanding prior to such exercise of
banker’s lien, setoff or counterclaim or other event; provided, however,
that if any such purchase or purchases or adjustments shall be made pursuant to
this Section 2.18 and the payment giving rise thereto shall thereafter be
recovered, such purchase or purchases or adjustments shall be rescinded to the
extent of such recovery and the purchase price or prices or adjustment restored
without interest.  The Borrowers and
Holdings expressly consent to the foregoing arrangements and agree that,
subject to applicable law, any Lender holding a participation in a Loan or L/C
Disbursement deemed to have been so purchased may exercise any and all rights
of banker’s lien, setoff or counterclaim with respect to any and all moneys
owing by either Borrower and Holdings to such Lender by reason thereof as fully
as if such Lender had made a Loan directly to the applicable Borrower in the
amount of such participation.

 

SECTION 2.19. 
Payments.  (a) The Borrowers shall make each payment
(including principal of or interest on any Borrowing or any L/C Disbursement or
any Fees or other amounts) hereunder and under any other Loan Document not
later than 1:00 p.m., Local Time, on the date when due in immediately
available funds, without setoff, defense or counterclaim.  Each such payment (other than (i) Issuing
Bank Fees, which shall be paid directly to the Issuing Bank, and (ii) principal
of and interest on Swingline Loans, which shall be paid directly to the
Swingline Lender except as otherwise provided in Section 2.22(e)) shall be made
to the Applicable Administrative Agent. 
Except as otherwise expressly provided herein, all payments hereunder or
under any other Loan Document in respect of any Loan or Letter of Credit
denominated in a Designated Foreign Currency (whether of principal, interest or
otherwise) shall be made in such Designated Foreign Currency.  All payments hereunder or under any other
Loan Document in respect of any Loan or Letter of Credit denominated in Dollars
(whether of principal, interest or otherwise) shall be made in Dollars.  Unless otherwise agreed by the applicable
Loan Party making such payment and the Lender receiving the same, all other
amounts payable by any Loan Party hereunder or under any other Loan Document
shall be payable in Dollars.

 

53

 

(b)  Except as otherwise expressly provided herein,
whenever any payment (including principal of or interest on any Borrowing or
any Fees or other amounts) hereunder or under any other Loan Document shall
become due, or otherwise would occur, on a day that is not a Business Day, such
payment may be made on the next succeeding Business Day, and such extension of
time shall in such case be included in the computation of interest or Fees, if
applicable.

 

SECTION 2.20. 
Taxes.  (a) Any and all payments by or on account of
any obligation of a Borrower or any other Loan Party hereunder or under any
other Loan Document shall be made free and clear of and without deduction for
any Indemnified Taxes or Other Taxes; provided,
however, that if a Borrower or
any Loan Party shall be required to deduct any Indemnified Taxes or 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 Applicable Administrative Agent,
such Lender or such Issuing Bank (as the case may be) receives an amount equal
to the sum it would have received had no such deductions been made, (ii) such
Borrower or such Loan Party shall make such deductions and (iii) such Borrower
or such Loan Party shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

 

(b)  In addition, the applicable Borrower shall
pay any Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

 

(c)  The Borrowers shall indemnify each
Administrative Agent, each Lender and each Issuing Bank, within 10 days
after written demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes paid by such Administrative Agent, such Lender or such Issuing
Bank, as the case may be, on or with respect to any payment by or on account of
any obligation of either Borrower or any Loan Party hereunder or under any
other Loan Document (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) 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 Borrowers by a Lender or an Issuing Bank,
or by an Administrative Agent on its behalf or on behalf of a Lender or an
Issuing Bank, shall be conclusive absent manifest error.

 

(d)  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by either Borrower or any other Loan Party to
a Governmental Authority, such Borrower shall deliver to the Applicable
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 such Administrative Agent.

 

(e)  Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which a Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments hereunder shall deliver to
the applicable Borrower (with a copy to each Administrative Agent), at the time
or times prescribed by applicable law, such properly completed and executed
documentation prescribed by applicable

 

54

 

law or
reasonably requested by such Borrower as will permit such payments to be made
without withholding or at a reduced rate; provided, however, that no Lender
shall be required to deliver any such documentation with respect to an
exemption from or reduction of withholding taxes imposed under the law of a
jurisdiction other than the United States of America unless the applicable
Borrower shall notify it of the availability of such exemption or reduction and
shall request the delivery of such documentation.

 

SECTION 2.21. 
Assignment of Commitments Under
Certain Circumstances; Duty to Mitigate.  (a) In the event (i) any Lender or Issuing Bank delivers a
certificate requesting compensation pursuant to Section 2.14, (ii) any Lender
or Issuing Bank delivers a notice described in Section 2.15, (iii) either
Borrower is required to pay any additional amount to any Lender or Issuing Bank
or any Governmental Authority on account of any Lender or Issuing Bank pursuant
to Section 2.20 or (iv) any Lender refuses to consent to any amendment, waiver
or other modification of any Loan Document requested by the Borrowers that
requires the consent of a greater percentage of the Lenders than the Required
Lenders and such amendment, waiver or other modification is consented to by the
Required Lenders, the Borrowers may, at their sole expense and effort
(including with respect to the processing and recordation fee referred to in
Section 9.04(b)), upon notice to such Lender or Issuing Bank and the General
Administrative Agent, require such Lender or Issuing Bank to transfer and
assign, without recourse (in accordance with and subject to the restrictions
contained in Section 9.04), all of its interests, rights and obligations under
this Agreement to an assignee that shall assume such assigned obligations
(which assignee may be another Lender, if a Lender accepts such assignment); provided, however,
that (x) such assignment shall not conflict with any law, rule or regulation or
order of any court or other Governmental Authority having jurisdiction, (y) the
Borrowers shall have received the prior written consent of the General
Administrative Agent (and, if a Revolving Commitment is being assigned, of the
Issuing Bank and the Swingline Lender), which consent shall not unreasonably be
withheld (it being acknowledged and agreed that the consent of any person that
would otherwise be required under this clause (y) shall not be required if such
person is the Lender or Issuing Bank required to make any such transfer and
assignment hereunder), and (z) the Borrowers or such assignee shall have
paid to the applicable Lender or Issuing Bank in immediately available funds an
amount equal to the sum of the principal of and interest accrued to the date of
such payment on the outstanding Loans or L/C Disbursements of such Lender or
Issuing Bank plus all Fees and other amounts accrued for the account of such
Lender or Issuing Bank hereunder (including any amounts under Section 2.14 and
Section 2.16); provided  further, that, if prior to any such
transfer and assignment the circumstances or event that resulted in such
Lender’s or Issuing Bank’s claim for compensation under Section 2.14 or
notice under Section 2.15 or the amounts paid pursuant to Section 2.20, as
the case may be, cease to cause such Lender or Issuing Bank to suffer increased
costs or reductions in amounts received or receivable or reduction in return on
capital, or cease to have the consequences specified in Section 2.15, or cease
to result in amounts being payable under Section 2.20, as the case may be
(including as a result of any action taken by such Lender or the Issuing Bank
pursuant to paragraph (b) below), or if such Lender or Issuing Bank shall waive
its right to claim further compensation under Section 2.14 in respect of such
circumstances or event or shall withdraw its notice under Section 2.15 or shall
waive its right to further payments under Section 2.20 in respect of such
circumstances or event or shall consent to the proposed amendment, waiver,
consent or other modification, as the case may be, then such Lender or Issuing
Bank shall not thereafter be required to make any such transfer and assignment
hereunder.  Each Lender hereby

 

55

 

grants to the
General Administrative Agent an irrevocable power of attorney (which power is
coupled with an interest) to execute and deliver, on behalf of such Lender as
assignor, any Assignment and Acceptance necessary to effectuate any assignment
of such Lender’s interests hereunder in the circumstances contemplated by this
Section 2.21(a).

 

(b)  If (i) any Lender or Issuing Bank shall
request compensation under Section 2.14, (ii) any Lender or Issuing Bank
delivers a notice described in Section 2.15 or (iii) the Borrowers are
required to pay any additional amount to any Lender or Issuing Bank or any
Governmental Authority on account of any Lender or Issuing Bank, pursuant to
Section 2.20, then such Lender or Issuing Bank shall use reasonable efforts
(which shall not require such Lender or Issuing Bank to incur an unreimbursed
loss or unreimbursed cost or expense or otherwise take any action inconsistent
with its internal policies or legal or regulatory restrictions or suffer any
disadvantage or burden deemed by it to be significant) (x) to file any
certificate or document reasonably requested in writing by the Borrowers or (y)
to assign its rights and delegate and transfer its obligations hereunder to
another of its offices, branches or Affiliates, if such filing or assignment
would reduce its claims for compensation under Section 2.14 or enable it to
withdraw its notice pursuant to Section 2.15 or would reduce amounts payable
pursuant to Section 2.20, as the case may be, in the future.

 

SECTION 2.22. 
Swingline Loans.  (a) Swingline
Commitments.  Subject to the
terms and conditions and relying upon the representations and warranties herein
set forth, the Swingline Lender agrees to make loans to the U.S. Borrower in
Dollars (“U.S. Swingline
Loans”), and to the European Borrower in Dollars or in one or
more Designated Foreign Currencies (“European Swingline Loans”) at any time and
from time to time on and after the Closing Date and until the earlier of the
Revolving Credit Maturity Date and the termination of the applicable Swingline
Commitment in accordance with the terms hereof, in an aggregate principal
amount at any time outstanding that will not result in (i) in the case of
U.S. Swingline Loans, (x) the U.S. Swingline Exposure exceeding the U.S.
Swingline Commitment or (y) the aggregate U.S. Revolving Exposure
exceeding the aggregate U.S. Revolving Commitments or (ii) in the case of
the European Swingline Loans, (x) the European Swingline Exposure
exceeding the European Swingline Commitment or (y) the aggregate European
Revolving Exposure exceeding the aggregate European Revolving Commitments.  Each Swingline Loan shall be in a principal
amount that is an integral multiple of $100,000, i100,000 or ₤100,000, as
the case may be.  The Swingline
Commitments may be terminated or reduced from time to time as provided
herein.  Within the foregoing limits,
the Borrowers may borrow, pay or prepay and reborrow Swingline Loans hereunder,
subject to the terms, conditions and limitations set forth herein.

 

(b)  Swingline Loans. The applicable Borrower
shall notify the Swingline Lender and the Applicable Administrative Agent by
fax, or by telephone (confirmed by fax), not later than 1:00 p.m., Local
Time, on the day of a proposed Swingline Loan. 
Such notice shall be delivered on a Business Day, shall be irrevocable
and shall refer to this Agreement and shall specify the requested date (which
shall be a Business Day), the amount and (in the case of a European Swingline
Loan) Currency of such Swingline Loan and the wire transfer instructions for
the account of the applicable Borrower to which the proceeds of such Swingline
Loan should be transferred. The Swingline Lender shall promptly make each
Swingline Loan by wire transfer to the account specified by the applicable
Borrower in such request.

 

56

 

(c)  Prepayment.  The applicable Borrower shall have the right at any time and from
time to time to prepay any Swingline Loan, in whole or in part and without
premium or penalty, upon giving written or fax notice (or telephonic notice
promptly confirmed by written or fax notice) to the Swingline Lender and to the
Applicable Administrative Agent before 1:00 p.m., Local Time, on the date
of prepayment at the Swingline Lender’s address for notices specified
herein.  All principal payments of
Swingline Loans shall be accompanied by accrued interest on the principal
amount being repaid to the date of payment.

 

(d)  Interest. 
Each U.S. Swingline Loan and each European Swingline Loan denominated in
Dollars shall be deemed to be an ABR Loan and, subject to the provisions of
Section 2.07, shall bear interest at the rate provided in Section 2.06(a).  Each European Swingline Loan denominated in
a Designated Foreign Currency shall be deemed to be an EBR Loan and, subject to
the provisions of Section 2.07, shall bear interest at the rate provided
in Section 2.06(b).

 

(e)  Participations.  By written notice given to the Applicable Administrative Agent
not later than 11:00 a.m., Local Time, on any Business Day the Swingline Lender
may require (i) the U.S. Revolving Lenders to acquire participations on
such Business Day in all or a portion of the U.S. Swingline Loans outstanding
and/or (ii) the European Revolving Lenders to acquire participations on the
next Business Day in all or a portion of the European Swingline Loans
outstanding.  Any such notice shall specify
the aggregate amount of Swingline Loans in which such Revolving Lenders will
participate.  The Applicable
Administrative Agent will, promptly upon receipt of such notice, give notice to
each applicable Revolving Lender, specifying in such notice such Revolving
Lender’s applicable Pro Rata Percentage of such Swingline Loan or Loans.  In furtherance of the foregoing, each
Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of
notice as provided above, to pay to the Applicable Administrative Agent, for
the account of the Swingline Lender, such Revolving Lender’s applicable Pro
Rata Percentage of such Swingline Loan or Loans.  Each Revolving Lender acknowledges and agrees that its obligation
to acquire participations in Swingline Loans pursuant to this paragraph is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including the occurrence and continuance of a Default or an Event
of Default, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever.  Each Revolving Lender shall comply with its obligation under this
paragraph by wire transfer in immediately available funds, in the same manner
as provided in Section 2.02(c) with respect to Loans made by such Lender (and
Section 2.02(c) shall apply, mutatis mutandis, to the payment
obligations of the Lenders) and the Applicable Administrative Agent shall
promptly pay to the Swingline Lender the amounts so received by it from the
applicable Revolving Lenders.  The
Applicable Administrative Agent shall notify the applicable Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph and
thereafter payments in respect of such Swingline Loan shall be made to the
Applicable Administrative Agent and not to the Swingline Lender.  Any amounts received by the Swingline Lender
from a Borrower (or other party on behalf of a Borrower) in respect of a
Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale
of participations therein shall be promptly remitted to the Applicable
Administrative Agent; any such amounts received by the Applicable
Administrative Agent shall be promptly remitted by the Applicable
Administrative Agent to the Revolving Lenders that shall have made their
payments pursuant to this paragraph and to the Swingline Lender, as their
interests may appear. The purchase of participations in a

 

57

 

Swingline Loan
pursuant to this paragraph shall not relieve a Borrower (or other party liable
for obligations of a Borrower) of any default in the payment thereof.

 

SECTION 2.23. 
Letters of Credit.  (a) General.  Either Borrower may request the issuance of
a Letter of Credit for its own account or for the account of Holdings or any
other Subsidiary (in which case the applicable Borrower, Holdings and/or such
Subsidiary shall be co-applicants with respect to such Letter of Credit), in a
form reasonably acceptable to the applicable Issuing Bank, at any time and from
time to time while (i) with respect to the U.S. Borrower, the U.S.
Revolving Commitments remain in effect and (ii) with respect to the
European Borrower, the European Revolving Commitments remain in effect.  Any U.S. Letter of Credit shall be
denominated in Dollars, and any European Letter of Credit shall be denominated
in Dollars or in a Designated Foreign Currency.  This Section shall not be construed to impose an obligation upon
the Issuing Bank to issue any Letter of Credit that is inconsistent with the terms
and conditions of this Agreement.

 

(b)  Notice of Issuance, Amendment, Renewal, Extension;
Certain Conditions.  In order
to request the issuance of a Letter of Credit (or to amend, renew or extend an
existing Letter of Credit), the applicable Borrower shall hand deliver or fax
to the Issuing Bank and the Applicable Administrative Agent (reasonably in
advance of the requested date of issuance, amendment, renewal or extension) a
notice requesting the issuance of a Letter of Credit, or identifying the Letter
of Credit to be amended, renewed or extended, the date of issuance, amendment,
renewal or extension, the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) below), the amount and (in the case of a
European Letter of Credit) Currency of such Letter of Credit, the name and
address of the beneficiary thereof and such other information as shall be
necessary to prepare such Letter of Credit. The Issuing Bank shall promptly
(i) notify each Administrative Agent in writing of the amount and expiry
date of each Letter of Credit issued by it and (ii) provide a copy of each
such Letter of Credit (and any amendments, renewals or extensions thereof) to
each Administrative Agent.  A Letter of
Credit shall be issued, amended, renewed or extended only if, and upon
issuance, amendment, renewal or extension of each Letter of Credit the
applicable Borrower shall be deemed to represent and warrant that, after giving
effect to such issuance, amendment, renewal or extension (i) in the case
of any U.S. Letter of Credit, (x) the U.S. L/C Exposure shall not exceed
$20,000,000 and (y) the aggregate U.S. Revolving Exposure shall not exceed
the aggregate U.S. Revolving Commitments and (ii) in the case of any European
Letter of Credit, (x) the European L/C Exposure shall not exceed $10,000,000
and (y) the aggregate European Revolving Exposure shall not exceed the
aggregate European Revolving Commitments.

 

(c)  Expiration Date.  Each Letter of Credit shall expire at the close of business on
the earlier of the date one year after the date of the issuance of such Letter
of Credit and the date that is five Business Days prior to the Revolving Credit
Maturity Date, unless such Letter of Credit expires by its terms on an earlier
date; provided,
however,
that a Letter of Credit may, upon the request of the applicable Borrower,
include a provision whereby such Letter of Credit shall be renewed
automatically for additional consecutive periods of 12 months or less (but not
beyond the date that is five Business Days prior to the Revolving Credit Maturity
Date) unless the Issuing Bank notifies the beneficiary thereof at least 30 days
prior to the then-applicable expiration date that such Letter of Credit will
not be renewed.

 

58

 

(d)  Participations.  By the issuance of a U.S. Letter of Credit and without any
further action on the part of the Issuing Bank or the U.S. Revolving Lenders,
the Issuing Bank hereby grants to each U.S. Revolving Lender, and each U.S.
Revolving Lender hereby acquires from the Issuing Bank, a participation in such
U.S. Letter of Credit equal to its U.S. Pro Rata Percentage of the aggregate
amount available to be drawn under such U.S. Letter of Credit, effective upon
the issuance of such U.S. Letter of Credit. 
By the issuance of a European Letter of Credit and without any further
action on the part of the Issuing Bank or the European Revolving Lenders, the
Issuing Bank hereby grants to each European Revolving Lender, and each European
Revolving Lender hereby acquires from the Issuing Bank, a participation in such
European Letter of Credit (payable in the Currency thereof) equal to its
European Pro Rata Percentage of the aggregate amount available to be drawn
under such European Letter of Credit, effective upon the issuance of such European
Letter of Credit.  In consideration and
in furtherance of the foregoing, each Revolving Lender hereby absolutely and
unconditionally agrees to pay to the Applicable Administrative Agent, for the
account of the Issuing Bank, its applicable Pro Rata Percentage of each
applicable L/C Disbursement made by the Issuing Bank and not reimbursed by the
applicable Borrower (or, if applicable, another party pursuant to its
obligations under any other Loan Document) forthwith on the date due as
provided in Section 2.02(f).  Each
Revolving Lender acknowledges and agrees that its obligation to acquire
participations and make payments pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including the occurrence and continuance of
Default or an Event of Default, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.

 

(e)  Reimbursement.  If an Issuing Bank shall make any L/C Disbursement in respect of
a Letter of Credit, the applicable Borrower shall pay to the Applicable
Administrative Agent (or directly to such Issuing Bank, with concurrent notice
to the Applicable Administrative Agent) an amount equal to such L/C Disbursement
(in the Currency in which such L/C Disbursement was made) (i) in the case of a
U.S. Letter of Credit, on or prior to the immediately following Business Day
and (ii) in the case of a European Letter of Credit, on or prior to the fourth
immediately following Business Day.

 

(f)  Obligations Absolute.  A Borrower’s obligation to reimburse L/C
Disbursements as provided in paragraph (e) above shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement, under any and all circumstances whatsoever,
and irrespective of:

 

(i) any lack of
validity or enforceability of any Letter of Credit or any Loan Document, or any
term or provision therein;

 

(ii) any amendment or
waiver of or any consent to departure from all or any of the provisions of any
Letter of Credit or any Loan Document;

 

(iii) the existence
of any claim, setoff, defense or other right that such Borrower, any other
party guaranteeing, or otherwise obligated with, such Borrower, any Subsidiary
or other Affiliate thereof or any other person may at any time have against the
beneficiary under any Letter of Credit, the Issuing Bank, either Administrative
Agent or any Lender

 

59

 

or any other person, whether in connection
with this Agreement, any other Loan Document or any other related or unrelated
agreement or transaction;

 

(iv) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect;

 

(v) payment by the
Issuing Bank under a Letter of Credit against presentation of a draft or other
document that does not strictly comply with the terms of such Letter of Credit;
and

 

(vi) any other act or
omission to act or delay of any kind of the Issuing Bank, any Lender, either
Administrative Agent or any other person or any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of a
Borrower’s obligations hereunder.

 

Without
limiting the generality of the foregoing, it is expressly understood and agreed
that the absolute and unconditional obligation of the Borrowers hereunder to
reimburse L/C Disbursements will not be excused by the gross negligence or
wilful misconduct of the Issuing Bank. 
However, the foregoing shall not be construed to excuse the Issuing Bank
from liability to either Borrower to the extent of any direct damages (as
opposed to special, indirect, consequential or punitive damages, claims in
respect of which are hereby waived by the Borrowers to the extent permitted by
applicable law) suffered by such Borrower that are caused by (i) the
Issuing Bank’s gross negligence or wilful misconduct in determining whether
drafts and other documents presented under a Letter of Credit comply with the
terms thereof or (ii) the Issuing Bank’s wilful failure to pay make a payment
under any Letter of Credit after presentation to it by the beneficiary
thereunder of a draft thereunder and related certificate(s) strictly complying
with the terms and conditions of such Letter of Credit.  It is further understood that an Issuing
Bank may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary and, in making any payment under any Letter of
Credit (i) the Issuing Bank’s exclusive reliance on the documents
presented to it under such Letter of Credit as to any and all matters set forth
therein, including reliance on the amount of any draft presented under such
Letter of Credit, whether or not the amount due to the beneficiary thereunder
equals the amount of such draft and whether or not any document presented
pursuant to such Letter of Credit proves to be insufficient in any respect, if
such document on its face appears to be in order, and whether or not any other
statement or any other document presented pursuant to such Letter of Credit
proves to be forged or invalid or any statement therein proves to be inaccurate
or untrue in any respect whatsoever and (ii) any noncompliance in any
immaterial respect of the documents presented under such Letter of Credit with
the terms thereof shall, in each case, be deemed not to constitute wilful
misconduct or gross negligence of an Issuing Bank.

 

(g)  Disbursement Procedures.  The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit.  The
Issuing Bank shall as promptly as possible give telephonic notification,
confirmed by fax, to the Applicable Administrative Agent and the applicable
Borrower of such demand for

 

60

 

payment and
whether the Issuing Bank has made or will make an L/C Disbursement thereunder; provided,
however,
that any failure to give or delay in giving such notice shall not relieve such
Borrower of its obligation to reimburse the Issuing Bank and the applicable
Revolving Lenders with respect to any such L/C Disbursement.  The Applicable Administrative Agent shall
promptly give each applicable Revolving Lender notice thereof.

 

(h)  Interim Interest.  If an Issuing Bank shall make any L/C
Disbursement in respect of a Letter of Credit, then, unless the applicable
Borrower shall reimburse such L/C Disbursement in full on such date, the unpaid
amount thereof shall bear interest for the account of the Issuing Bank, for
each day from and including the date of such L/C Disbursement, to but excluding
the earlier of the date of payment by such Borrower or the date on which
interest shall commence to accrue thereon as provided in Section 2.02(f), at
the rate per annum that would apply to such amount if such amount were an ABR
Revolving Loan (if denominated in Dollars) or an EBR Loan (if denominated in a
Designated Foreign Currency).

 

(i)  Resignation or Removal of the Issuing Bank.  An Issuing Bank may resign at any time by
giving 30 days’ prior written notice to each Administrative Agent, the
applicable Revolving Lenders and the Borrowers, and may be removed at any time
by the Borrowers by notice to the Issuing Bank, the General Administrative
Agent and the applicable Revolving Lenders; provided, however, that no such
resignation by the Issuing Bank shall be effective if there shall not be one or
more other Issuing Banks hereunder at such time that are capable of issuing
U.S. Letters of Credit and European Letters of Credit, unless (i) any Change in
Law shall have made it unlawful for the resigning Issuing Bank to continue to
act as such hereunder or (ii) the resigning Issuing Bank shall have ceased to
act (or publicly announced its intention to cease to act) as an issuer of
letters of credit under U.S. syndicated loan facilities in general.  Upon the acceptance of any appointment as an
Issuing Bank hereunder by a Lender that shall agree to serve as a successor
Issuing Bank, such successor shall succeed to and become vested with all the
interests, rights and obligations of the retiring Issuing Bank and the retiring
Issuing Bank shall be discharged from its obligations to issue additional
Letters of Credit hereunder.  At the
time such removal or resignation shall become effective, the Borrowers shall
pay all accrued and unpaid Issuing Bank Fees. 
The acceptance of any appointment as an Issuing Bank hereunder by a
successor Lender shall be evidenced by an agreement entered into by such successor,
in a form satisfactory to the Borrowers and the General Administrative Agent,
and, from and after the effective date of such agreement, (i) such
successor shall have all the rights and obligations of the previous Issuing
Bank under this Agreement and the other Loan Documents and (ii) references
herein and in the other Loan Documents to the term “Issuing Bank” shall be
deemed to refer to such successor or to any previous Issuing Bank, or to such
successor and all previous Issuing Banks, as the context shall require.  After the resignation or removal of an
Issuing Bank hereunder, the retiring Issuing Bank shall remain a party hereto
and shall continue to have all the rights and obligations of an Issuing Bank
under this Agreement and the other Loan Documents with respect to Letters of
Credit issued by it prior to such resignation or removal, but shall not be
required to issue additional Letters of Credit.

 

(j)  Cash Collateralization.  If any Event of Default shall occur and be
continuing, each Borrower shall, on the Business Day it receives notice from
the Applicable Administrative Agent upon the request of the Required Lenders
(or, if the maturity of the Loans has been accelerated, (i) with respect to
U.S. Letters of Credit, U.S. Revolving Lenders holding participations in

 

61

 

outstanding
U.S. Letters of Credit representing greater than 50% of the aggregate undrawn
amount of all outstanding U.S. Letters of Credit, and (ii) with respect to
European Letters of Credit, European Revolving Lenders holding participations
in outstanding European Letters of Credit representing greater than 50% of the
aggregate undrawn amount of all outstanding European Letters of Credit) thereof
and of the amount to be deposited, deposit in an account with the Applicable
Collateral Agent, for the benefit of the applicable Revolving Lenders, an
amount in cash equal to the applicable L/C Exposure as of such date; provided, however,
that the obligation to deposit such cash shall become effective immediately,
and such deposit shall become immediately due and payable, without demand or
other notice of any kind, upon the occurrence of any Event of Default with
respect to Holdings or either Borrower described in clause (g) or (h) or
Article VII.  Such deposit shall be held
by the Applicable Collateral Agent as collateral for the payment and
performance of the U.S. Obligations or the European Obligations, as the case
may be.  The Collateral Agent shall have
exclusive dominion and control, including the exclusive right of withdrawal,
over such account.  Other than any
interest earned on the investment of such deposits in Permitted Investments,
which investments shall be made as determined by the Collateral Agent in the
exercise of its reasonable discretion, such deposits shall not bear
interest.  Interest or profits, if any,
on such investments shall accumulate in such account.  Moneys in such account shall (i) automatically be applied by
the Applicable Administrative Agent to reimburse the Issuing Bank for L/C
Disbursements for which it has not been reimbursed, (ii) be held for the
satisfaction of the reimbursement obligations of the applicable Borrower for
the L/C Exposure at such time and (iii) if the maturity of the Loans has been
accelerated (but subject to the consent of (A) with respect to U.S. Letters of
Credit, U.S. Revolving Lenders holding participations in outstanding U.S.
Letters of Credit representing greater than 50% of the aggregate undrawn amount
of all outstanding U.S. Letters of Credit and (B) with respect to European
Letters of Credit, European Revolving Lenders holding participations in
outstanding European Letters of Credit representing greater than 50% of the
aggregate undrawn amount of all outstanding European Letters of Credit), be
applied to satisfy the U.S. Obligations or the European Obligations, as the
case may be.  If the Borrowers are
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned within three Business Days after all Events of
Default have been cured or waived.

 

(k)  Additional Issuing Banks.  The Borrowers may, at any time and from time
to time with the consent of the General Administrative Agent (which consent
shall not be unreasonably withheld) and such Lender, designate one or more
additional Lenders to act as an issuing bank under the terms of this
Agreement.  Any Lender designated as an
issuing bank pursuant to this paragraph (k) shall be deemed to be an “Issuing
Bank” (in addition to being a Lender) in respect of Letters of Credit issued or
to be issued by such Lender, and, with respect to such Letters of Credit, such
term shall thereafter apply to the other Issuing Bank and such Lender.

 

SECTION 2.24. 
Increase in Term Loan
Commitments.  (a)  Either Borrower may, by written notice to
the General Administrative Agent from time to time, request Incremental Term
Commitments in an aggregate amount not to exceed the Incremental Term Loan
Amount from one or more Incremental Term Lenders, which may include any
existing Lender; provided, however, that each Incremental Term
Lender, if not already a Lender hereunder, shall be subject to the prior
approval of the General Administrative Agent (which approval shall not be
unreasonably withheld or delayed).  Such
notice shall set forth (i) whether such Incremental

 

62

 

Term Loans are
to be made to the U.S. Borrower or the European Borrower, (ii) the amount
of the Incremental Term Commitments being requested (which shall be in minimum
increments of $1,000,000 and a minimum amount of $10,000,000 or equal to the
remaining Incremental Term Loan Amount), (iii) the date on which such
Incremental Term Commitments are requested to become effective (which shall not
be less than 10 Business Days nor more than 60 days after the date of such
notice) and (iv) whether such Incremental Term Commitments are to be Term
B-1 Commitments, Term B-2 Commitments or commitments to make term loans with terms
different from the Term B-1 Loans and the Term B-2 Loans (“Other Term Loans”).

 

(b)  The applicable Borrower and each Incremental
Term Lender shall execute and deliver to the Applicable Administrative Agent an
Incremental Term Loan Assumption Agreement and such other documentation as the
Applicable Administrative Agent shall reasonably specify to evidence the
Incremental Term Commitment of such Incremental Term Lender.  Each Incremental Term Loan Assumption
Agreement shall specify the terms of the Incremental Term Loans to be made
thereunder; provided,
however,
that, without the prior written consent of Lenders holding a majority in
interest of the outstanding Loans and Commitments of each adversely affected
Class of Term Loans, (i) the final maturity date of any Other Term Loans
shall be no earlier than (x) the final maturity date of any other Class of Term
Loans and (y) if the initial yield (determined as provided below) on such Other
Term Loans exceeds the Applicable Percentage then in effect for Eurocurrency
Term Loans of any Class, the date falling six months after the final maturity
date of each such adversely affected Class; (ii) the average life to
maturity of any Other Term Loans shall be no shorter than (x) the average life
to maturity of any other Class of Term Loans and (y) if the initial yield
(determined as provided below) on such Other Term Loans exceeds the Applicable
Percentage then in effect for Eurocurrency Term Loans of any Class, six months
longer than the average life to maturity of each such adversely affected Class;
and (iii) if the initial yield on any Other Term Loans (as determined by the
General Administrative Agent to be equal to the sum of (x) the Adjusted
LIBOR margins on the Other Term Loans and (y) if the Other Term Loans are
initially made at a discount or the lenders making the same receive a fee from
Holdings, any Borrower or any Subsidiary for doing so (the amount of such
discount or fee, expressed as a percentage of the Other Term Loans, being
referred to herein as “OID”), the amount of
such OID divided by the lesser of (A) the average life to maturity of such
Other Term Loans and (B) four) exceeds by more than 50 basis points (the amount
of such excess above 50 basis points being referred to herein as the “Yield Differential”) the Applicable Percentage then in
effect for Eurocurrency Term Loans of any Class, then each Applicable
Percentage for each adversely affected Class of Term Loans shall automatically
be increased by the Yield Differential, effective upon the making of the Other
Term Loans.  The General Administrative
Agent shall promptly notify each Lender as to the effectiveness of each
Incremental Term Loan Assumption Agreement. 
Each of the parties hereto hereby agrees that, upon the effectiveness of
any Incremental Term Loan Assumption Agreement, this Agreement shall be deemed
amended to the extent (but only to the extent) necessary to reflect the
existence and terms of the Incremental Term Commitment evidenced thereby and
any increase to the Applicable Percentages required by the foregoing provisions
of this Section 2.24(b).  Any such
deemed amendment may be memorialized in writing by the General Administrative
Agent with the applicable Borrower’s consent (not to be unreasonably withheld)
and furnished to the other parties hereto.

 

63

 

(c)  Notwithstanding the foregoing, no
Incremental Term Commitment shall become effective under this Section 2.24
unless (i) on the date of such effectiveness, the conditions set forth in paragraphs
(b) and (c) of Section 4.01 shall be satisfied and the Applicable
Administrative Agent shall have received a certificate to that effect dated
such date and executed by a Financial Officer of Holdings, (ii) if requested,
the General Administrative Agent shall have received legal opinions, board
resolutions and other closing certificates and documentation consistent with
those delivered on the Closing Date under Section 4.02 and (iii) Holdings
would be in Pro Forma Compliance after giving effect to such Incremental Term
Commitment and the Loans to be made thereunder and the application of the
proceeds therefrom as if made and applied on such date.

 

(d)  Each of the parties hereto hereby agrees
that the General Administrative Agent may take any and all action as may be
reasonably necessary to ensure that all Incremental Term Loans (other than
Other Term Loans), when originally made, are included in each Borrowing of
outstanding Term B-1 Loans or Term B-2 Loans, as applicable, on a pro rata
basis.  This may be accomplished at the
discretion of the General Administrative Agent by requiring each outstanding
Eurocurrency Term B-1 Borrowing to be converted into an ABR Term Borrowing on
the date of each Incremental Term Loan, or by allocating a portion of each Incremental
Term Loan to each outstanding Eurocurrency Term Borrowing of the same Class on
a pro rata basis, even though as a result thereof such Incremental Term Loan
may effectively have a shorter Interest Period than the Term Loans included in
the Borrowing of which they are a part (and notwithstanding any other provision
of this Agreement that would prohibit such an initial Interest Period).  Any conversion of Eurocurrency Term Loans to
ABR Term Loans made pursuant to the preceding sentence shall be subject to
Section 2.16.  In addition, to the
extent any Incremental Term Loans are not Other Term Loans, the scheduled
amortization payments under Section 2.11(a)(i) or (ii), as applicable,
required to be made after the making of such Incremental Term Loans shall be
ratably increased by the aggregate principal amount of such Incremental Term
Loans.

 

SECTION 2.25. 
Increase in Revolving Commitments.  (a) 
Either Borrower may, by written notice to the General Administrative
Agent, request that the total U.S. Revolving Commitment or the total European
Revolving Commitment be increased by an aggregate amount not to exceed the
Incremental Revolving Facility Amount at such time.  Upon the receipt of such request by the General Administrative
Agent, the General Administrative Agent shall deliver a copy thereof to each
Revolving Lender of the Class to be increased. 
Such notice shall set forth the amount of the requested increase (which
shall be in minimum increments of $500,000 and a minimum amount of $2,500,000
or equal to the remaining Incremental Revolving Facility Amount) and the date
on which such increase is requested to become effective (which shall be not
less than 10 days nor more than 60 days after the date of such notice and
which, in any event, must be on or prior to the Revolving Credit Maturity
Date), and shall offer each such Revolving Lender the opportunity to increase
its Revolving Commitment of such Class by its applicable Pro Rata Percentage of
the proposed increased amount.  Each
such Revolving Lender shall, by notice to the applicable Borrower and the
General Administrative Agent given not more than 10 days after the date of the
General Administrative Agent’s notice, either agree to increase its Revolving
Commitment by all or a portion of the offered amount (each Revolving Lender so
agreeing being an “Increasing
Revolving Lender”) or decline to increase its Revolving
Commitment (and any Revolving Lender that does not deliver such a notice within
such period of 10 days shall be

 

64

 

deemed to have
declined to increase its Revolving Commitment) (each Revolving Lender so
declining or being deemed to have declined being a “Non-Increasing Revolving Lender”).  In the event that, on the 10th day after the
General Administrative Agent shall have delivered a notice pursuant to the
second sentence of this paragraph, the Increasing Revolving Lenders shall have
agreed pursuant to the preceding sentence to increase their Revolving
Commitments by an aggregate amount less than the increase requested by the
applicable Borrower, such Borrower may arrange for one or more banks or other
entities (any such bank or other entity being called an “Augmenting Revolving Lender”),
which may include any Lender, to extend Revolving Commitments or increase their
existing Revolving Commitments in an aggregate amount equal to the unsubscribed
amount; provided, however, that each Augmenting Revolving
Lender shall be subject to the prior written approval of the General
Administrative Agent, the Swingline Lender and the Issuing Bank (which
approvals shall not be unreasonably withheld or delayed), and the applicable
Borrower and each Augmenting Revolving Lender shall execute all such
documentation as the General Administrative Agent shall reasonably specify to
evidence its Revolving Commitment and/or its status as a Revolving Lender
hereunder.  Any such increase may be
made in an amount that is less than the increase requested by the applicable
Borrower if such Borrower is unable to arrange for, or chooses not to arrange
for, Augmenting Revolving Lenders.

 

(b)  Each of the parties hereto hereby agrees
that the General Administrative Agent may take any and all actions as may be
reasonably necessary to ensure that, after giving effect to any increase
pursuant to this Section 2.25, the outstanding Revolving Loans (if any) of
the affected Class are held by the Revolving Lenders of such Class in
accordance with their new applicable Pro Rata Percentages.  This may be accomplished at the discretion
of the General Administrative Agent, following consultation with the applicable
Borrower, (i) by requiring the outstanding Revolving Loans of the affected
Class to be prepaid with the proceeds of a new Revolving Borrowing of such
Class, (ii) by causing Non-Increasing Revolving Lenders to assign portions
of their outstanding Revolving Loans of the affected Class to Increasing
Revolving Lenders and/or Augmenting Revolving Lenders, or (iii) by any
combination of the foregoing.  Any
prepayment or assignment described in this paragraph (b) shall be subject
to Section 2.16, but shall otherwise be without premium or penalty.

 

(c)  Notwithstanding the foregoing, no increase
in the Revolving Commitments shall become effective under this Section 2.25
unless, (i) on the date of such increase, the conditions set forth in
paragraphs (b) and (c) of Section 4.01 shall be satisfied and the
General Administrative Agent shall have received a certificate to that effect
dated such date and executed by a Financial Officer of Holdings, and
(ii) if requested, the General Administrative Agent shall have received
legal opinions and board resolutions consistent with those delivered on the
Closing Date under clauses (a) and (c)(ii)(B) of Section 4.02.

 

ARTICLE III

 

Representations and Warranties

 

Each of Holdings and the Borrowers represents and warrants to each
Administrative Agent, each Collateral Agent, the Issuing Bank and each of the
Lenders that:

 

65

 

SECTION 3.01. 
Organization; Powers.  Each of Holdings, the Borrowers and the
Subsidiaries (a) is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, (b) has all
requisite power and authority to own its property and assets and to carry on
its business as now conducted and as proposed to be conducted, (c) is
qualified to do business in, and is in good standing in, every jurisdiction
where such qualification is required, except where the failure so to qualify
could not reasonably be expected to result in a Material Adverse Effect, and
(d) has the power and authority to execute, deliver and perform its
obligations under each of the Loan Documents and each other agreement or
instrument contemplated hereby or thereby to which it is or will be a party
and, in the case of each Borrowers, to borrow hereunder.

 

SECTION 3.02. 
Authorization.  The Transactions (a) have been duly
authorized by all requisite corporate and, if required, stockholder or
shareholder action and (b) will not (i) violate (A) any
provision of law, statute, rule or regulation in any material respect, or any
provision of the certificate or articles of incorporation, memorandum of
association or other constitutive documents or by-laws (or bye-laws) of
Holdings, either Borrower or any Subsidiary, (B) any order of any
Governmental Authority or (C) any provision of any material indenture,
agreement or other instrument to which Holdings, either Borrower or any
Subsidiary is a party or by which any of them or any material portion of their
property is or may be bound, (ii) be in conflict with, result in a breach
of or constitute (alone or with notice or lapse of time or both) a default
under, or give rise to any right to accelerate or to require the prepayment,
repurchase or redemption of any obligation under any such indenture, agreement
or other instrument or (iii) result in the creation or imposition of any
Lien upon or with respect to any material property or assets now owned or
hereafter acquired by Holdings, either Borrower or any Subsidiary (other than
any Lien created or permitted hereunder or under the Security Documents).

 

SECTION 3.03. 
Enforceability.  This Agreement has been duly executed and
delivered by Holdings and the Borrowers and constitutes, and each other Loan
Document when executed and delivered by each Loan Party party thereto will
constitute, a legal, valid and binding obligation of such Loan Party
enforceable against such Loan Party in accordance with its terms, except to the
extent that enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization or similar laws affecting the enforcement of
creditors’ rights generally or by general principles of equity (regardless of
whether such enforcement is considered in a proceeding in equity or at law).

 

SECTION 3.04. 
Governmental Approvals.  Except as set forth on Schedule 3.04, no
material action, consent or approval of, registration or filing with or any
other action by any Governmental Authority is or will be required in connection
with the Transactions, except for (a) the filing of Uniform Commercial
Code financing statements and filings with the United States Patent and
Trademark Office and the United States Copyright Office, (b) recordation
of the Mortgages and (c) such as have been made or obtained and are in
full force and effect or which are not material to the consummation of the
Transactions.

 

SECTION 3.05. 
Financial Statements.  (a) 
Holdings has heretofore furnished to the Lenders (i) the combined
balance sheets (except for the 2001 fiscal year) and related statements of
income and cash flows of the Acquired Business as of and for the fiscal years
ended March 31, 2001, 2002 and 2003, each audited by and accompanied by
the unqualified opinion of

 

66

 

Ernst &
Young, LLP, independent public accountants and (ii) the unaudited combined
balance sheet and related statements of income, stockholders’ equity and cash
flows of the Acquired Business as of and for each fiscal quarter subsequent to March 31,
2003 ended 30 days before the Closing Date.  Such financial statements present fairly in all material respects
the financial condition and results of operations and cash flows of the
Acquired Business as of such dates and for such periods.  Such balance sheets and the notes thereto
disclose all material liabilities, direct or contingent, of the Acquired
Business as of the dates thereof.  Such
financial statements were prepared in accordance with GAAP, except that the
unaudited financial statements are subject to normal year-end audit adjustments
and may not contain footnotes.

 

(b)  Holdings has heretofore delivered to the
Lenders its unaudited pro forma consolidated balance sheet and related pro
forma statements of income and cash flows as of and for the 12-month period
ended September 30, 2003, prepared after giving effect to the Transactions
as if they had occurred, with respect to such balance sheet, on such date and,
with respect to such other financial statements, on the first day of the 12-month
period ending on such date.  Such pro
forma financial statements have been prepared in good faith by Holdings, based
on the assumptions used to prepare the pro forma financial information
contained in the Confidential Information Memorandum (which assumptions are
believed by Holdings on the date hereof and on the Closing Date to be
reasonable), are based on the best information available to Holdings as of the
date of delivery thereof, accurately reflect all adjustments required to be
made to give effect to the Transactions and present fairly in all material
respects on a pro forma basis the estimated consolidated financial position of
Holdings and its consolidated Subsidiaries as of such date and for such period,
assuming that the Transactions had actually occurred at such date or at the
beginning of such period, as the case may be.

 

SECTION 3.06. 
No Material Adverse Change.  No event, change or condition has occurred
that has had, or could reasonably be expected to have, a material adverse
effect on the business, operations or financial condition of Holdings and its
Subsidiaries, taken as a whole, since March 31, 2003.

 

SECTION 3.07. 
Title to Properties; Possession Under
Leases.  (a)  Holdings
and each of the Subsidiaries has fee simple title to, or valid leasehold
interests in, all its material properties and assets, except for minor defects
in title that do not interfere in any material respect with its ability to
conduct its business as currently conducted or to utilize such properties and
assets for their intended purposes.  All
such material properties and assets are free and clear of Liens, other than
Liens expressly permitted by Section 6.02 or created hereunder or under
the Security Documents.

 

(b)  Each material lease to which Holdings or any
of the Subsidiaries is a party is in full force and effect and, as of the
Closing Date, Holdings and each of the Subsidiaries enjoys peaceful and
undisturbed possession under all such material leases.

 

SECTION 3.08. 
Subsidiaries.  Schedule 3.08 sets forth as of the
Closing Date a list of all Subsidiaries and the percentage ownership interest
of Holdings or any Subsidiary therein. 
The shares of Equity Interests so indicated on Schedule 3.08 are fully
paid and non-assessable and are owned by Holdings or any Subsidiary, directly
or indirectly, free and clear of all Liens (other than Liens permitted or
created under the Security Documents).

 

67

 

SECTION 3.09. 
Litigation; Compliance with Laws.  (a)  Except as set forth on
Schedule 3.09, there are not any actions, suits or proceedings at law or
in equity or by or before any Governmental Authority now pending or, to the
knowledge of Holdings or either Borrower, threatened in writing against or
affecting Holdings, any Subsidiary or any business, property or rights of any
such person (i) that involve any Loan Document or the Transactions or
(ii) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected,
individually or in the aggregate, to result in a Material Adverse Effect.

 

(b)  Since the date of this Agreement, there has
been no change in the status of the matters disclosed on Schedule 3.09
that, individually or in the aggregate, has resulted in, or materially
increased the likelihood of, a Material Adverse Effect.

 

(c)  Neither Holdings nor any of the Subsidiaries
or any of their respective material properties or assets is in violation of,
nor will the continued operation of their material properties and assets as
currently conducted violate, any law, rule or regulation (including any zoning,
building, Environmental Law, ordinance, code or approval or any building
permits), or is in default with respect to any judgment, writ, injunction, decree
or order of any Governmental Authority, where such violation or default could
reasonably be expected to result in a Material Adverse Effect.

 

SECTION 3.10. 
Material Agreements.  Neither Holdings nor any of the Subsidiaries
is in default in any manner under any provision of any indenture or other
agreement or instrument evidencing Indebtedness, or any other material
agreement or instrument to which it is a party or by which it or any of its
properties or assets are or may be bound, where such default could reasonably
be expected to result in a Material Adverse Effect.

 

SECTION 3.11. 
Federal Reserve Regulations.  (a) Neither Holdings nor any of the
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of buying or carrying Margin
Stock.

 

(b)  No part of the proceeds of any Loan or any
Letter of Credit will be used, whether directly or indirectly, and whether
immediately, incidentally or ultimately, for any purpose that entails a
violation of, or that is inconsistent with, the provisions of the regulations
of the Board, including Regulation T, U or X.

 

SECTION 3.12. 
Investment Company Act; Public
Utility Holding Company Act. 
Neither Holdings nor any Subsidiary is (a) an “investment company”
as defined in, or subject to regulation under, the U.S. Investment Company Act
of 1940 or (b) a “holding company” as defined in, or subject to regulation
under, the U.S. Public Utility Holding Company Act of 1935.

 

SECTION 3.13. 
Use of Proceeds.  Each Borrower will use the proceeds of the
Loans (other than any Incremental Term Loans) and will request the issuance of
Letters of Credit only for the purposes specified in the preliminary statement
to this Agreement.  The applicable
Borrower will use the proceeds of any Incremental Term Loans solely as set
forth in the applicable Incremental Term Loan Assumption Agreement.

 

68

 

SECTION 3.14. 
Tax Returns.  Holdings and each of the Subsidiaries has
filed or caused to be filed all Federal, state, local and foreign tax returns
or materials required to have been filed by it and has paid or caused to be
paid all taxes due and payable by it and all assessments received by it, except
taxes that are being contested in good faith by appropriate proceedings and for
which Holdings or such Subsidiary, as applicable, shall have set aside on its
books adequate reserves.

 

SECTION 3.15. 
No Material Misstatements.  As of the Closing Date, the Confidential
Information Memorandum and all other information, reports, financial
statements, exhibits and schedules furnished by or on behalf of Holdings or any
Subsidiary to either Administrative Agent or any Lender in connection with the
negotiation of any Loan Document or included therein or delivered pursuant
thereto, when taken as a whole, do not contain any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which such statements
are or were made, not materially misleading; provided,
however, that to the extent any
such information, report, financial statement, exhibit or schedule was based
upon or constitutes a forecast or projection, each of Holdings and the
Borrowers represents only that it acted in good faith and utilized assumptions
and estimates believed in good faith by it to be reasonable at the time made in
the preparation of such information, report, financial statement, exhibit or
schedule.

 

SECTION 3.16. 
Employee Benefit Plans.  (a)  Each of Holdings and its ERISA
Affiliates is in compliance in all material respects with the applicable
provisions of ERISA and the Code and the regulations and published
interpretations thereunder with respect to each “employee benefit plan” (as
defined in Section 3(3) of ERISA). 
No ERISA Event has occurred or is reasonably expected to occur that,
when taken together with all other such ERISA Events, could reasonably be
expected to result in any liability of Holdings or any of its ERISA Affiliates
in excess of $15,000,000.  The present
value of all benefit liabilities under each Plan (based on the assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as
of the last annual valuation date applicable thereto, exceed by more than
$10,000,000 the fair market value of the assets of such Plan, and the present
value of all benefit liabilities of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the last annual valuation date applicable thereto,
exceed by more than $15,000,000 the fair market value of the assets of all such
underfunded Plans.

 

(b)  Each Foreign Pension Plan is in compliance
in all material respects with all requirements of law applicable thereto and
the respective requirements of the governing documents for such plan.  With respect to each Foreign Pension Plan,
none of Holdings, its Affiliates or any of their respective directors,
officers, employees or agents has engaged in a transaction which would subject
Holdings or any of its Subsidiaries, directly or indirectly, to a tax or civil
penalty which could reasonably be expected, individually or in the aggregate,
to result in a Material Adverse Effect. 
With respect to each Foreign Pension Plan, reserves have been
established in the financial statements furnished to Lenders in respect of any
unfunded liabilities in accordance with applicable law and prudent business
practice or, where required, in accordance with ordinary accounting practices
in the jurisdiction in which such Foreign Pension Plan is maintained.  The aggregate unfunded liabilities with
respect to such Foreign Pension Plans could not reasonably be expected to
result in a Material Adverse Effect; the present value

 

69

 

of the
aggregate accumulated benefit liabilities of all such Foreign Pension Plans
(based on those assumptions used to fund each such Foreign Pension Plan) did
not, as of March 31, 2003, exceed by more than $35,000,000 the fair market
value of the assets of all such Foreign Pension Plans.

 

SECTION 3.17. 
Environmental Matters.  (a) Except as set forth in
Schedule 3.17 and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, neither Holdings nor any of the Subsidiaries
(i) has failed to comply with any Environmental Law or to obtain, maintain
or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability,
(iii) has received notice of any claim with respect to any Environmental
Liability or (iv) knows of any basis for any Environmental Liability.

 

(b)  Since the date of this Agreement, there has
been no change in the status of the matters disclosed on Schedule 3.17
that, individually or in the aggregate, has resulted in, or materially
increased the likelihood of, a Material Adverse Effect.

 

SECTION 3.18. 
Insurance.  Schedule 3.18 sets forth a true,
complete and correct description of all insurance maintained by or on behalf of
Holdings or any Subsidiary as of the date hereof and the Closing Date.  As of each such date, such insurance is in
full force and effect and all premiums have been duly paid.  Holdings and its Subsidiaries have insurance
in such amounts and covering such risks and liabilities as are in accordance
with normal industry practice.

 

SECTION 3.19. 
Security Documents.  (a) The U.S. Guarantee and Collateral
Agreement, upon execution and delivery thereof by the parties thereto, will
create in favor of the U.S. Collateral Agent, for the ratable benefit of the
Secured Parties, a legal, valid and enforceable security interest in the U.S.
Collateral and the proceeds thereof and (i) when the U.S. Pledged
Collateral required to be delivered on the Closing Date to the U.S. Collateral
Agent under the U.S. Guarantee and Collateral Agreement is delivered to the
U.S. Collateral Agent, the Lien created under the U.S. Guarantee and Collateral
Agreement shall constitute a fully perfected first priority Lien on, and
security interest in, all right, title and interest of the Loan Parties in such
U.S. Pledged Collateral, in each case prior and superior in right to any other
person, and (ii) when financing statements in appropriate form are filed
and maintained in the offices specified on Schedule 3.19(a) and, with
respect to Holdings as to the U.S. Guarantee and Collateral Agreement, filed
with the Registrar of Companies in Bermuda, the Lien created under the U.S.
Guarantee and Collateral Agreement will constitute a fully perfected Lien on,
and security interest in, all right, title and interest of the Loan Parties as
of the Closing Date in such U.S. Collateral to the extent that a security
interest in such U.S. Collateral may be perfected by such filing (other than
Intellectual Property, as defined in the U.S. Guarantee and Collateral
Agreement), in each case prior and superior in right to any other person, other
than with respect to Liens expressly permitted by Section 6.02.

 

(b)  Upon the recordation of the U.S. Guarantee
and Collateral Agreement with the United States Patent and Trademark Office and
the United States Copyright Office, together with the financing statements in
appropriate form filed in the offices specified on Schedule 3.19(a), the U.S.
Guarantee and Collateral Agreement shall provide for a fully perfected Lien on,
and

 

70

 

security
interest in, all right, title and interest of the Loan Parties in the
Intellectual Property (as defined in the U.S. Guarantee and Collateral
Agreement) in which a security interest may be perfected by filing in the
United States and its territories and possessions, in each case prior and
superior in right to any other person, other than with respect to Liens
expressly permitted by Section 6.02 (it being understood that subsequent
recordings in the United States Patent and Trademark Office and the United
States Copyright Office may be necessary to perfect a Lien on registered
trademarks, trademark applications and copyrights acquired by the Loan Parties
after the date hereof).

 

(c)  The Mortgages are effective to create in
favor of the U.S. Collateral Agent, for the ratable benefit of the Secured
Parties, a legal, valid and enforceable Lien on all of the Loan Parties’ right,
title and interest in and to the Mortgaged Property thereunder and the proceeds
thereof, and when the Mortgages are filed in the offices specified on Schedule 3.19(c),
the Lien created under the Mortgages delivered on the Closing Date shall
constitute a fully perfected Lien on, and security interest in, all right,
title and interest of the Loan Parties in such Mortgaged Property and the
proceeds thereof, in each case prior and superior in right to any other person,
other than with respect to the rights of persons pursuant to Liens expressly
permitted by Section 6.02.

 

(d)  The European Pledge Agreements, upon
execution and delivery thereof by the parties thereto, will create in favor of
the European Collateral Agent, for the ratable benefit of the European Secured
Parties, a legal, valid and enforceable security interest in the European
Pledged Collateral described therein and the proceeds thereof and when the European
Pledged Collateral is delivered to the European Collateral Agent and the
European Pledge Agreements are filed in the offices specified on Schedule
3.19(b), or other appropriate instruments are filed or other actions are taken,
all as described on Schedule 3.19(b), the Lien created under the applicable
European Pledge Agreement shall provide for a fully perfected first priority
Lien on, and security interest in, all right, title and interest of the
applicable Loan Parties in such European Pledged Collateral as of the Closing
Date, in each case prior and superior in right to any other person, other than
with respect to Liens expressly permitted by Section 6.02.

 

SECTION 3.20. 
Location of Real Property and Leased
Premises. 
Schedule 3.20(a) lists completely and correctly as of the Closing
Date all real property owned by Holdings and its Subsidiaries and the addresses
thereof.  Holdings and its Subsidiaries,
as the case may be, as of the Closing Date, own in fee all the real property
set forth on Schedule 3.20(a). 
Schedule 3.20(b) lists completely and correctly as of the Closing Date
all material real property leased by Holdings and its Subsidiaries and the
addresses thereof.  Holdings and its
Subsidiaries, as the case may be, as of the Closing Date, have valid leasehold
interests in all the real property set forth on Schedule 3.20(b).

 

SECTION 3.21. 
Labor Matters.  Except as set forth on Schedule 3.21, as of
the date hereof and the Closing Date, there are no strikes, lockouts or
slowdowns against Holdings or any Subsidiary pending or, to the knowledge of
Holdings or either Borrower, threatened. 
The hours worked by and payments made to employees of Holdings and the
Subsidiaries have not been in violation in any material respect of the Fair
Labor Standards Act or any other applicable Federal, state, local or foreign
law dealing with such matters.  All
payments due from Holdings or any Subsidiary, or for which any claim may be
made against Holdings or any Subsidiary, on account

 

71

 

of wages and
employee health and welfare insurance and other benefits, have been paid or
accrued as a liability on the books of Holdings or such Subsidiary.  The consummation of the Transactions will
not give rise to any right of termination or right of renegotiation on the part
of any union under any collective bargaining agreement to which Holdings or any
Subsidiary is bound.

 

SECTION 3.22. 
Solvency.  Immediately after the consummation of the
Transactions to occur on the Closing Date and immediately following the making
of each Loan and after giving effect to the application of the proceeds of each
Loan, (a) the fair value of the assets of the Loan Parties taken as a whole, at
a fair valuation, will exceed their debts and liabilities, subordinated,
contingent or otherwise; (b) the present fair saleable value of the property of
the Loan Parties will be greater than the amount that will be required to pay
the probable liability of their debts and other liabilities, subordinated, contingent
or otherwise, as such debts and other liabilities become absolute and matured;
(c) the Loan Parties taken as a whole will be able to pay their debts and
liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (d) the Loan Parties taken as a
whole will not have unreasonably small capital with which to conduct the
businesses in which they are engaged as such businesses are now conducted and
are proposed to be conducted following the Closing Date.

 

SECTION 3.23. 
Purchase Agreement.  As of the Closing Date, Holdings has
delivered to the General Administrative Agent a complete and correct copy of
the Purchase Agreement (including all schedules, exhibits, amendments,
supplements and modifications thereto). 
Neither Holdings nor any Loan Party or, to the knowledge of Holdings and
each Loan Party, any other person party thereto is in default in the
performance or compliance with any material provisions thereof.  The Purchase Agreement complies in all material
respects with all applicable laws.

 

SECTION 3.24. 
Senior Indebtedness.  The Obligations constitute “Senior
Indebtedness” under and as defined in the Subordinated Note Documents.

 

SECTION 3.25. 
Certain Treasury Regulation Matters.  Neither Borrower intends to treat the Loans
and related transactions as being a “reportable” transaction (within the
meaning of Treasury Regulation 1.6011-4).

 

ARTICLE IV

 

Conditions of Lending

 

The obligations of the Lenders to make Loans and of the Issuing Bank to
issue Letters of Credit hereunder are subject to the satisfaction of the
following conditions:

 

SECTION 4.01. 
All Credit Events.  On the date of each Borrowing (other than a
conversion or continuation of a Borrowing), including each Borrowing of a
Swingline Loan and on the date of each issuance, amendment, extension or
renewal of a Letter of Credit (each such event being called a “Credit Event”):

 

(a)  The Applicable Administrative Agent shall
have received a notice of such Borrowing as required by Section 2.03 (or
such notice shall have been deemed given in accordance with

 

72

 

Section 2.03)
or, in the case of the issuance, amendment, extension or renewal of a Letter of
Credit, the Issuing Bank and the General Administrative Agent shall have
received a notice requesting the issuance, amendment, extension or renewal of
such Letter of Credit as required by Section 2.23(b) or, in the case of
the Borrowing of a Swingline Loan, the Swingline Lender and the Applicable Administrative
Agent shall have received a notice requesting such Swingline Loan as required
by Section 2.22(b).

 

(b)  The representations and warranties set forth
in Article III hereof and in each other Loan Document shall be true and correct
in all material respects on and as of the date of such Credit Event with the
same effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date.

 

(c)  No Event of Default or Default shall have
occurred and be continuing.

 

Each Credit Event shall be deemed to constitute a representation and
warranty by the applicable Borrower and Holdings on the date of such Credit
Event as to the matters specified in paragraphs (b) and (c) of this
Section 4.01.

 

SECTION 4.02. 
First Credit Event.  On the Closing Date:

 

(a)  The General Administrative Agent shall have
received, on behalf of itself, the Lenders and the Issuing Bank, a favorable
written opinion of (i) Mayer, Brown, Rowe & Maw LLP, counsel for Holdings
and its Subsidiaries, substantially to the effect set forth in Exhibit H-1, and
(ii) each local counsel listed on Schedule 4.02(a), substantially to the
effect set forth in Exhibit H-2, in each case (A) dated the Closing Date, (B)
addressed to the Issuing Bank, the Administrative Agents and the Lenders and
(C) covering such other matters relating to the Loan Documents and the
Transactions as the General Administrative Agent shall reasonably request, and
Holdings and the Borrowers hereby request such counsel to deliver such
opinions.

 

(b)  All legal matters incident to this
Agreement, the Borrowings and extensions of credit hereunder and the other Loan
Documents shall be reasonably satisfactory to the Lenders, to the Issuing Bank
and to the Administrative Agents and, to the extent requested, the Lenders
shall have received all documentation and other information required by bank
regulatory authorities under applicable “know your customer” and anti-money
laundering rules and regulations, including the USA Patriot Act.

 

(c)  The General Administrative Agent shall have
received (i) a copy of the certificate or articles of incorporation, memorandum
of association, certificate of limited partnership or certificate of formation
(or other similar formation document), including all amendments thereto, of
each Loan Party, certified as of a recent date by the Secretary of State (or
other similar official) of the jurisdiction of its organization, and a
certificate as to the good standing of each Loan Party as of a recent date,
from such Secretary of State (or other similar official); (ii) a certificate of
the Secretary or Assistant Secretary of each Loan Party dated the Closing Date
and certifying (A) that attached thereto is a true and complete copy of the
by-laws (or bye-laws), partnership agreement, limited liability company
agreement (or other equivalent governing documents) of such Loan Party as in
effect on the Closing Date and at all times since a date prior to the date of
the resolutions described in clause (B) below, (B) that attached thereto is a
true and

 

73

 

complete copy
of resolutions duly adopted by the Board of Directors (or other equivalent
governing body) of such Loan Party authorizing the execution, delivery and
performance of the Loan Documents to which such person is a party and, in the
case of the Borrowers, the borrowings hereunder, and that such resolutions have
not been modified, rescinded or amended and are in full force and effect,
(C) that the certificate or articles of incorporation (or other similar
formation document) of such Loan Party has not been amended since the date of
the last amendment thereto shown on the certificate of good standing furnished
pursuant to clause (i) above and (D) as to the incumbency and specimen
signature of each officer executing any Loan Document or any other document
delivered in connection herewith on behalf of such Loan Party; (iii) a
certificate of another officer as to the incumbency and specimen signature of the
Secretary or Assistant Secretary executing the certificate pursuant to clause
(ii) above; and (iv) such other documents as the Lenders, the Issuing Bank or
the General Administrative Agent may reasonably request.

 

(d)  The General Administrative Agent shall have
received a certificate, dated the Closing Date and signed by a Financial
Officer of Holdings and each Borrower, confirming compliance with the
conditions precedent set forth in paragraphs (b) and (c) of Section 4.01.

 

(e)  The General Administrative Agent shall have
received all Fees and other amounts due and payable on or prior to the Closing
Date, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the Borrowers
hereunder or under any other Loan Document.

 

(f)  The Security Documents shall have been duly
executed by each Loan Party that is to be a party thereto and shall be in full
force and effect on the Closing Date. 
The Applicable Collateral Agent on behalf of the applicable Secured
Parties shall have a security interest in the Collateral of the type and
priority described in each applicable Security Document.

 

(g)  The U.S. Collateral Agent shall have
received a Perfection Certificate with respect to the Loan Parties dated the
Closing Date and duly executed by a Financial Officer of the U.S. Borrower, and
shall have received the results of a search of the Uniform Commercial Code
filings (or equivalent filings) made with respect to the Loan Parties in the
states (or other jurisdictions) of formation of such persons, in which the
chief executive office of each such person is located and in the other
jurisdictions within the United States in which such persons maintain property,
in each case as indicated on such Perfection Certificate, together with copies
of the financing statements (or similar documents) disclosed by such search,
and accompanied by evidence reasonably satisfactory to the U.S. Collateral
Agent that the Liens indicated in any such financing statement (or similar
document) would be permitted under Section 6.02 or have been or will be
contemporaneously released or terminated.

 

(h)  (i) 
Each of the Mortgages, in form and substance satisfactory to the
Lenders, relating to each of the Mortgaged Properties shall have been duly
executed by the parties thereto and delivered to the U.S. Collateral Agent and
shall be in full force and effect, (ii) each of such Mortgaged Properties
shall not be subject to any Lien other than those permitted under
Section 6.02, (iii) each of such Mortgages shall have been filed and
recorded in the recording office as specified on Schedule 3.19(c) (or a
lender’s title insurance policy, in form and substance acceptable to the
Collateral Agent, insuring such Mortgage as a first lien on such

 

74

 

Mortgaged
Property (subject to any Lien permitted by Section 6.02) shall have been
received by the U.S. Collateral Agent) and, in connection therewith, the U.S.
Collateral Agent shall have received evidence satisfactory to it of each such
filing and recordation and (iv) the U.S. Collateral Agent shall have
received such other documents, including a policy or policies of title
insurance issued by a nationally recognized title insurance company, together
with such endorsements, coinsurance and reinsurance as may be requested by the
U.S. Collateral Agent and the Lenders, insuring the Mortgages as valid first
liens on the Mortgaged Properties, free of Liens other than those permitted
under Section 6.02, together with such surveys, abstracts, appraisals and
legal opinions required to be furnished pursuant to the terms of the Mortgages
or as reasonably requested by the U.S. Collateral Agent or the Required
Lenders.

 

(i)  The General Administrative Agent shall have
received a copy of, or a certificate as to coverage under, the insurance
policies required by Section 5.02 and the applicable provisions of the
Security Documents, each of which shall be endorsed or otherwise amended to
include a customary lender’s loss payable endorsement and to name the U.S.
Collateral Agent as additional insured, in form and substance reasonably
satisfactory to the General Administrative Agent and the U.S. Collateral Agent.

 

(j)  The Acquisition shall have been, or
substantially simultaneously with the initial funding of Loans on the Closing
Date shall be, consummated in accordance with the Purchase Agreement and
applicable law, without giving effect to any waiver of any material terms or
conditions of the Purchase Agreement not approved by the Required Lenders.  The Holdings Equity Contribution shall have
been made on terms reasonably satisfactory to the Required Lenders.  The General Administrative Agent shall have
received copies of the Purchase Agreement and all certificates, opinions and
other documents delivered thereunder or in connection therewith, certified by a
Financial Officer of Holdings as being complete and correct.  The Required Lenders shall be reasonably
satisfied with any material changes to the capitalization, structure and equity
ownership of Holdings and its Subsidiaries after giving effect to the
Transactions from those contemplated in the Purchase Agreement.

 

(k)  The U.S. Borrower shall have received gross
cash proceeds of not less than $275,000,000 from the issuance of the
Subordinated Notes.  The terms and
conditions of the Subordinated Notes and the provisions of the Subordinated
Note Documents shall be reasonably satisfactory to the Required Lenders.  The General Administrative Agent shall have
received copies of the Subordinated Note Documents, certified by a Financial
Officer of the U.S. Borrower as being complete and correct.

 

(l)  Immediately after giving effect to the
Transactions and the other transactions contemplated hereby, no Subsidiary
shall have any outstanding Indebtedness or preferred Equity Interests other
than (a) Indebtedness outstanding under this Agreement, (b) the Subordinated
Notes, and (c) Indebtedness set forth on Schedule 6.01.  Immediately after giving effect to the
Transactions and the other transactions contemplated hereby, Holdings shall
have no outstanding Indebtedness or issued and outstanding preferred stock or
preferred shares other than (a) its Guarantee of the Indebtedness outstanding
under this Agreement, (b) its Guarantee of the Subordinated Notes and
(c) any preferred Equity Interests of Holdings that comprise a portion of
the Holdings Equity Contribution.

 

75

 

(m)  The Lenders shall have received the
financial statements and opinion referred to in Section 3.05.

 

(n)  All requisite Governmental Authorities shall
have approved or consented to the Transactions and the other transactions
contemplated hereby to the extent required (except to the extent the failure to
obtain such approval or consent could not reasonably be expected to have a
Material Adverse Effect), all applicable appeal periods with respect thereto
shall have expired and there shall not be any pending or threatened litigation,
governmental, administrative or judicial action that could reasonably be
expected to prevent or impose materially burdensome conditions on the
Transactions or the other transactions contemplated hereby.  All requisite third-party consents necessary
for the consummation of the Acquisition shall have been obtained except for
those third-party consents where the failure to so obtain such consents could
not reasonably be expected to have a Material Adverse Effect.

 

ARTICLE V

 

Affirmative Covenants

 

Each of Holdings and the Borrowers covenants and agrees with each
Lender that so long as this Agreement shall remain in effect and until the
Commitments have been terminated and the principal of and interest on each
Loan, all Fees and all other expenses or amounts payable under any Loan
Document shall have been paid in full and all Letters of Credit have been
canceled or have expired and all amounts drawn thereunder have been reimbursed
in full, unless the Required Lenders shall otherwise consent in writing, each
of Holdings and the Borrowers will, and will cause each of the Subsidiaries to:

 

SECTION 5.01. 
Existence; Businesses and Properties.  (a) Do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence, except (i)as otherwise expressly permitted under Section 6.05 or
(ii) other than in the case of Holdings or a Borrower, to the extent that the
failure to so preserve, renew and keep in full force and effect such legal
existence could not reasonably be expected to have a Material Adverse Effect.

 

(b)  Do or cause to be done all things necessary
to obtain, preserve, renew, extend and keep in full force and effect all
rights, licenses, permits, franchises, authorizations, patents, copyrights,
trademarks and trade names used in or relating to the conduct of its business,
except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect; maintain and operate such business in substantially
the manner in which it is presently conducted and operated; comply with all
applicable laws, rules, regulations and decrees and orders of any Governmental
Authority, whether now in effect or hereafter enacted, except where the failure
to do so could not reasonably be expected to have a Material Adverse Effect;
and at all times maintain and preserve all property material to the conduct of
such business and keep such property in good repair, working order and
condition and from time to time make, or cause to be made, all needful and
proper repairs, renewals, additions, improvements and replacements thereto
consistent with past practice.

 

76

 

SECTION 5.02. 
Insurance.  (a) Keep its material insurable properties
adequately insured at all times by financially sound and reputable insurers;
maintain such other insurance, to such extent and against such risks, including
fire and other risks insured against by extended coverage, as is customary with
companies in the same or similar businesses operating in the same or similar
locations, including public liability insurance against claims for personal
injury or death or property damage occurring upon, in, about or in connection
with the use of any properties owned, occupied or controlled by it; and
maintain such other insurance as may be required by law.

 

(b)  Cause all such policies covering any
Collateral to be endorsed or otherwise amended to include a customary lender’s
loss payable endorsement, in form and substance reasonably satisfactory to the
General Administrative Agent and the U.S. Collateral Agent, which endorsement
shall provide that, from and after the Closing Date, if the insurance carrier
shall have received written notice from the General Administrative Agent or the
U.S. Collateral Agent of the occurrence of an Event of Default, the insurance carrier
shall pay all proceeds otherwise payable to any Loan Party under such policies
directly to the U.S. Collateral Agent; cause all such policies to provide that
none of the Borrowers, the Administrative Agents, the Collateral Agents or any
other party shall be a coinsurer thereunder and to contain a “Replacement Cost
Endorsement”, without any deduction for depreciation, and such other provisions
as the General Administrative Agent or the U.S. Collateral Agent may reasonably
require from time to time to protect their interests; deliver original or
certified copies of all such policies to the U.S. Collateral Agent; cause each
such policy to provide that it shall not be canceled, modified or not renewed
(i) by reason of nonpayment of premium upon not less than 10 days’ prior
written notice thereof by the insurer to the General Administrative Agent and
the U.S. Collateral Agent (giving the General Administrative Agent and the U.S.
Collateral Agent the right to cure defaults in the payment of premiums) or (ii)
for any other reason upon not less than 30 days’ prior written notice thereof
by the insurer to the General Administrative Agent and the U.S. Collateral
Agent; deliver to the General Administrative Agent and the U.S. Collateral
Agent, prior to the cancellation, modification or nonrenewal of any such policy
of insurance, a copy of a renewal or replacement policy (or other evidence of
renewal of a policy previously delivered to the General Administrative Agent
and the U.S. Collateral Agent) together with evidence satisfactory to the
General Administrative Agent and the U.S. Collateral Agent of payment of the
premium therefor.

 

(c)  If at any time the area in which the
Premises (as defined in the Mortgages) are located is designated (i) a “flood
hazard area” in any Flood Insurance Rate Map published by the Federal Emergency
Management Agency (or any successor agency), obtain flood insurance in such
total amount as the General Administrative Agent, the U.S. Collateral Agent or
the Required Lenders may from time to time require, and otherwise comply with
the National Flood Insurance Program as set forth in the Flood Disaster
Protection Act of 1973, as it may be amended from time to time, or (ii) a “Zone
1” area, obtain earthquake insurance in such total amount as the General
Administrative Agent, the U.S. Collateral Agent or the Required Lenders may
from time to time require.

 

(d)  With respect to any Mortgaged Property,
carry and maintain comprehensive general liability insurance including a “broad
form CGL endorsement” and coverage on an occurrence basis against claims made
for personal injury (including bodily injury, death and property

 

77

 

damage) and
umbrella liability insurance against any and all claims, in no event for a
combined single limit of less than $10,000,000, naming the U.S. Collateral
Agent as an additional insured, on forms satisfactory to the U.S. Collateral
Agent.

 

(e)  Notify the General Administrative Agent and
the U.S. Collateral Agent immediately whenever any separate insurance
concurrent in form or contributing in the event of loss with that required to
be maintained under this Section 5.02 is taken out by any Loan Party.

 

SECTION 5.03. 
Obligations and Taxes.  Pay its Indebtedness and other obligations
promptly and in accordance with their terms and pay and discharge promptly when
due all taxes, assessments and governmental charges or levies imposed upon it
or upon its income or profits or in respect of its property, before the same
shall become delinquent or in default, as well as all lawful claims for labor,
materials and supplies or otherwise that, if unpaid, might give rise to a Lien
upon such properties or any part thereof (other than any Lien permitted
pursuant to Section 6.02); provided,
however, that such payment and
discharge shall not be required with respect to any such tax, assessment,
charge, levy or claim so long as the validity or amount thereof shall be
contested in good faith by appropriate proceedings and the applicable Borrower
shall have set aside on its books adequate reserves with respect thereto in
accordance with GAAP and such contest operates to suspend collection of the
contested obligation, tax, assessment or charge and enforcement of a Lien and,
in the case of a Mortgaged Property, there is no risk of forfeiture of such
property.

 

SECTION 5.04. 
Financial Statements, Reports, etc.  In the case of Holdings, furnish to each
General Administrative Agent and each Lender:

 

(a)  within 105 days after the end of the fiscal
year ending March 31, 2004, and within 90 days after the end of each fiscal
year thereafter, its consolidated balance sheet and related statements of
income, stockholders’ or shareholders’ equity and cash flows showing the
financial condition of Holdings and its consolidated Subsidiaries as of the
close of such fiscal year and the results of its operations and the operations
of such Subsidiaries during such year, together with comparative figures for
the immediately preceding fiscal year, all audited by Ernst & Young,
LLP or other independent public accountants of recognized national standing and
accompanied by an opinion of such accountants (which shall not be qualified in
any material respect) to the effect that such consolidated financial statements
fairly present the financial condition and results of operations of Holdings
and its consolidated Subsidiaries on a consolidated basis in accordance with
GAAP consistently applied;

 

(b)  within 60 days after the end of the fiscal
quarter ending June 30, 2004, and, thereafter, within 45 days after the end of
each of the first three fiscal quarters of each fiscal year, its consolidated
balance sheet and related statements of income, stockholders’ or shareholders’
equity and cash flows showing the financial condition of Holdings and its
consolidated Subsidiaries as of the close of such fiscal quarter and the
results of its operations and the operations of such Subsidiaries during such
fiscal quarter and the then elapsed portion of the fiscal year, and comparative
figures for the same periods in the immediately preceding fiscal year, all
certified by one of its Financial Officers as fairly presenting the financial
condition and results of operations of Holdings and its consolidated
Subsidiaries on a consolidated basis in

 

78

 

accordance
with GAAP consistently applied, subject to normal year-end audit adjustments
and the absence of footnotes;

 

(c)  within 45 days after the end of the fiscal
months ending April 30, May 31, July 31 and August 31, 2004, and
within 30 days after the end of the first two fiscal months of each fiscal
quarter thereafter, its consolidated balance sheet and related statements of
income and cash flows showing the financial condition of Holdings and its
consolidated Subsidiaries during such fiscal month and the then elapsed portion
of the fiscal year, all certified by one of its Financial Officers as fairly
presenting the financial condition and results of operations of Holdings and
its consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes;

 

(d)  concurrently with any delivery of financial
statements under paragraph (a) or (b) above, a certificate of the chief
financial officer of Holdings (i) certifying that no Event of Default or
Default has occurred or, if such an Event of Default or Default has occurred,
specifying the nature and extent thereof and any corrective action taken or
proposed to be taken with respect thereto, (ii) setting forth computations in
reasonable detail satisfactory to the General Administrative Agent (which shall
include a reasonably detailed calculation of Consolidated EBITDA for the
relevant period) demonstrating compliance with the covenants contained in
Sections 6.06, 6.10, 6.11 and 6.12, and (iii) describing the material terms of
any Asset Sales that occurred during the preceding quarter (including the
nature of the assets sold, the purchase price and Net Cash Proceeds therefrom
and the amount of proceeds from all Asset Sales that have been reinvested or
that are awaiting reinvestment in accordance with the definition of the term
“Net Cash Proceeds”), and, in the case of a certificate delivered with the
financial statements required by paragraph (a) above, (x) setting forth
Holdings’ calculation of Excess Cash Flow and (y) certifying a list of names of
all Immaterial Subsidiaries, that each Subsidiary set forth on such list
individually qualifies as an Immaterial Subsidiary and that all Domestic
Subsidiaries listed as Immaterial Subsidiaries did not in the aggregate
comprise more than 5% of consolidated assets at the end of the relevant period
or more than 5% of Consolidated EBITDA for the relevant period (determined as
if the terms Consolidated Net Income and Consolidated Interest Expense as used
in the definition of the term “Consolidated EBITDA” were determined by
reference to the U.S. Borrower and its Subsidiaries instead of Holdings and the
Subsidiaries).

 

(e)  (i) within 45 days after the commencement of
each fiscal year of Holdings, a detailed consolidated budget for such fiscal
year (including a projected consolidated balance sheet and related statements
of projected operations and cash flows as of the end of and for such fiscal
year);

 

(f)  promptly after the same become publicly
available, copies of all periodic and other reports, proxy statements and other
materials filed by Holdings or any Subsidiary with the Securities and Exchange
Commission, or any Governmental Authority succeeding to any or all of the
functions of said Commission, or with any national securities exchange, and all
press releases;

 

79

 

(g)  promptly after the receipt thereof by
Holdings, either Borrower or any Subsidiary, a copy of any “management letter”
received by any such person from its certified public accountants and the
management’s response thereto;

 

(h)  promptly, following a request by any Lender,
all documentation and other information that such Lender reasonably requests in
order to comply with its ongoing obligations under applicable “know your
customer” and anti-money laundering rules and regulations, including the USA
Patriot Act; and

 

(i)  promptly, from time to time, such other
information regarding the operations, business affairs and financial condition
of Holdings or any Subsidiary, or compliance with the terms of any Loan
Document, as the General Administrative Agent or any Lender may reasonably
request.

 

SECTION 5.05. 
Litigation and Other Notices.  Furnish to the General Administrative Agent,
the Issuing Bank and each Lender written notice of the following within 5 days
of Holdings or any Subsidiary obtaining knowledge thereof:

 

(a)  any Event of Default or Default, specifying
the nature and extent thereof and the corrective action (if any) taken or
proposed to be taken with respect thereto;

 

(b)  the filing or commencement of, or any threat
or notice of intention of any person to file or commence, any action, suit or
proceeding, whether at law or in equity or by or before any Governmental
Authority, against Holdings or any Subsidiary that could reasonably be expected
to result in a Material Adverse Effect; and

 

(c)  any development that has resulted in, or
could reasonably be expected to result in, a Material Adverse Effect.

 

SECTION 5.06. 
Information Regarding Collateral.  (a) Furnish to the General Administrative
Agent prompt written notice of any change (i) in any Loan Party’s legal name,
(ii) in the jurisdiction of organization or formation of any Loan Party, (iii)
in any Loan Party’s identity or corporate structure or (iv) in any Loan Party’s
Federal Taxpayer Identification Number. 
Holdings and the Borrowers agree not to effect or permit any change
referred to in the preceding sentence unless Holdings or the applicable
Borrower has provided to the U.S. Collateral Agent sufficient notice to allow
the U.S. Collateral Agent a reasonable period of time to make all filings under
the Uniform Commercial Code or otherwise that are required in order for the
U.S. Collateral Agent to continue at all times following such change to have a
valid, legal and perfected security interest in all the U.S. Collateral.  Holdings and the Borrowers also agree
promptly to notify the General Administrative Agent if any material portion of
the Collateral is damaged or destroyed.

 

(b)  In the case of the U.S. Borrower, each year,
at the time of delivery of the annual financial statements with respect to the
preceding fiscal year by Holdings pursuant to Section 5.04(a), deliver to the
General Administrative Agent a certificate of a Financial Officer setting forth
the information required pursuant to Sections 1(a), (e) and (f) and 2(a) and
(b) of the Perfection Certificate or confirming that there has been no change
in such information since the

 

80

 

date of the
Perfection Certificate delivered on the Closing Date or the date of the most
recent certificate delivered pursuant to this Section 5.06.

 

SECTION 5.07. 
Maintaining Records; Access to
Properties and Inspections. 
Keep proper books of record and account in which full, true and correct
entries in conformity with GAAP and all requirements of law are made of all
dealings and transactions in relation to its business and activities.  Each Loan Party will, and will cause each of
its subsidiaries to, permit any representatives designated by the General
Administrative Agent or any Lender to visit and inspect the financial records
and the properties of Holdings or any Subsidiary at reasonable times and as
often as reasonably requested (but no more than twice per fiscal year, unless
an Event of Default has occurred and is continuing) and to make extracts from
and copies of such financial records, and permit any representatives designated
by the General Administrative Agent, or any Lender to discuss the affairs,
finances and condition of Holdings, or any Subsidiary with the officers thereof
and independent accountants therefor (provided that a member of management of
the applicable Loan Party shall be afforded a reasonable opportunity to be
present at any meeting with such accountants).

 

SECTION 5.08. 
Use of Proceeds.  Use the proceeds of the Loans and request
the issuance of Letters of Credit only for the purposes set forth in the
preliminary statement to this Agreement (or, in the case of the Incremental
Term Loans, as set forth in the applicable Incremental Term Loan Assumption
Agreement).

 

SECTION 5.09. 
Further Assurances.  Execute any and all further documents,
financing statements, agreements and instruments, and take all further action
(including filing Uniform Commercial Code and other financing statements,
charges, mortgages and deeds of trust) that may be required under any
applicable law, or that the Required Lenders, either Administrative Agent or
either Collateral Agent may reasonably request, in order to effectuate the
transactions contemplated by the Loan Documents and in order to grant,
preserve, protect and perfect the validity and priority of the security
interests created or intended to be created by the Security Documents.  Holdings and the U.S. Borrower will cause
any subsequently acquired or organized Domestic Subsidiary (other than any
Immaterial Subsidiary) or any Domestic Subsidiary that ceases to be an
Immaterial Subsidiary to become a Loan Party by executing the U.S. Guarantee
and Collateral Agreement and each other applicable U.S. Security Document in
favor of the U.S. Collateral Agent.  In
addition, from time to time, the U.S. Borrower will, at its cost and expense,
promptly secure the Obligations by pledging or creating, or causing to be
pledged or created, perfected security interests with respect to such of its
assets and properties as the General Administrative Agent, the U.S. Collateral
Agent or the Required Lenders shall designate in accordance with the terms of
the relevant Security Document (it being understood that it is the intent of
the parties that the Obligations shall be secured by substantially all the
assets of the U.S. Borrower and its Subsidiaries (other than any Immaterial
Subsidiary (including the Equity Interests of any Immaterial Subsidiary) and
any Foreign Subsidiary) (including real and other properties acquired
subsequent to the Closing Date)).  Such
security interests and Liens will be created under the U.S. Security Documents
and other security agreements, charges, mortgages, deeds of trust and other
instruments and documents in form and substance satisfactory to the General
Administrative Agent and the U.S. Collateral Agent, and the U.S. Borrower shall
deliver or cause to be delivered to the Lenders all such instruments and
documents (including legal opinions, title insurance policies and lien
searches) as the U.S. Collateral Agent shall reasonably

 

81

 

request to
evidence compliance with this Section 5.09.  The U.S. Borrower agrees to provide such evidence as the U.S.
Collateral Agent shall reasonably request as to the perfection and priority
status of each such security interest and Lien.  In furtherance of the foregoing, the U.S. Borrower will give
prompt notice to the General Administrative Agent of the acquisition by it or
any of its Subsidiaries of any real property (or any interest in real property)
having a value in excess of $2,500,000. 
It is understood and agreed that, notwithstanding anything to the
contrary in the foregoing, (a) the U.S. Borrower and its Subsidiaries will
not be required to (i) grant a security interest in or mortgage on any real
property acquired by it after the Closing Date having a value below that
specified in the immediately preceding sentence or (ii) grant a security
interest in motor vehicles, leasehold interests or any other category of assets
that is not expressly included in the security interest granted under the terms
of the U.S. Security Documents, and (b) no Receivables Subsidiary shall be
required to provide any Guarantee or other form of credit support in respect of
the Obligations.  Holdings and the
European Borrower will notify the General Administrative Agent of the creation
or acquisition of any Foreign Subsidiaries organized under the laws of the
Republic of France or the Federal Republic of Germany (other than an Immaterial
Subsidiary) after the Closing Date and, if reasonably requested by the General
Administrative Agent, will cause such Subsidiary (including any such Subsidiary
that ceases to be an Immaterial Subsidiary) to become a Loan Party by executing
the European Guarantee Agreement and one or more European Security Documents in
favor of the European Collateral Agent covering assets of the type constituting
European Collateral on the Closing Date.

 

SECTION 5.10. 
Employee Benefits.  (a) Comply in all material respects with the
applicable provisions of ERISA and the Code and the laws applicable to any
Foreign Pension Plan and (b) furnish to the General Administrative Agent as
soon as possible after, and in any event within 10 days after any responsible
officer of Holdings or any ERISA Affiliate knows or has reason to know that,
any ERISA Event has occurred that, alone or together with any other ERISA Event
could reasonably be expected to result in liability of Holdings and any ERISA
Affiliate in an aggregate amount exceeding $10,000,000, a statement of a
Financial Officer of Holdings setting forth details as to such ERISA Event and
the action, if any, that Holdings proposes to take with respect thereto.

 

SECTION 5.11. 
Compliance with Environmental Laws.  Comply, and cause all lessees and other
persons occupying its properties to comply, in all material respects with all
Environmental Laws applicable to its operations and properties; obtain and
renew all material environmental permits necessary for its operations and
properties; and conduct any remedial action in accordance with Environmental
Laws; provided, however, that neither Holdings, nor any
Subsidiary shall be required to undertake any remedial action required by
Environmental Laws to the extent that its obligation to do so is being
contested in good faith and by proper proceedings and appropriate reserves are
being maintained with respect to such circumstances in accordance with GAAP.

 

SECTION 5.12. 
Certain Treasury Regulation Matters.  In the event that Holdings or either
Borrower determines to take any action inconsistent with its intention as set
forth in the first sentence of Section 3.25, it will promptly notify the
General Administrative Agent thereof.

 

82

 

SECTION 5.13. 
Domestic Subsidiaries.  Ensure that Domestic Subsidiaries that are
Loan Parties at all times comprise at least 95% of the consolidated assets and
at least 95% of Consolidated EBITDA (determined as if the terms Consolidated
Net Income and Consolidated Interest Expense as used in the definition of the
term “Consolidated EBITDA” were determined by reference to the U.S. Borrower
and its Subsidiaries instead of Holdings and the Subsidiaries).

 

ARTICLE VI

 

Negative Covenants

 

Each of Holdings and the Borrowers covenants and agrees with each
Lender that, so long as this Agreement shall remain in effect and until the
Commitments have been terminated and the principal of and interest on each
Loan, all Fees and all other expenses or amounts payable under any Loan
Document have been paid in full and all Letters of Credit have been cancelled
or have expired and all amounts drawn thereunder have been reimbursed in full,
unless the Required Lenders shall otherwise consent in writing, neither
Holdings nor either Borrower will, nor will they cause or permit any of the
Subsidiaries to:

 

SECTION 6.01. 
Indebtedness.  Incur, create, assume or permit to exist any
Indebtedness, except:

 

(a)  Indebtedness existing on the date
hereof and set forth in Schedule 6.01;

 

(b)  Indebtedness created hereunder and
under the other Loan Documents;

 

(c)  intercompany Indebtedness of Holdings
and the Subsidiaries to the extent permitted by Section 6.04(c);

 

(d)  Indebtedness of Holdings or any
Subsidiary incurred to finance the acquisition, construction or improvement of
any fixed or capital assets, and extensions, renewals and replacements of any
such Indebtedness that do not increase the outstanding principal amount
thereof; provided, however, that (i) such Indebtedness
is incurred prior to or within 180 days after such acquisition or the
completion of such construction or improvement and (ii) the aggregate
principal amount of Indebtedness permitted by this Section 6.01(d), when
combined with the aggregate principal amount of all Capital Lease Obligations
and Synthetic Lease Obligations incurred pursuant to Section  6.01(e),
shall not exceed $30,000,000 at any time outstanding;

 

(e)  Capital Lease Obligations and
Synthetic Lease Obligations in an aggregate principal amount, when combined
with the aggregate principal amount of all Indebtedness incurred pursuant to
Section 6.01(d), not in excess of $30,000,000 at any time outstanding;

 

(f)  Indebtedness under completion
guarantees, performance, bid or surety bonds, statutory, insurance, appeal or
similar bonds, or with respect to workers’ compensation claims, in each case
incurred in the ordinary course of business;

 

83

 

(g)  Indebtedness of Holdings and its
Domestic Subsidiaries that are Loan Parties in respect of the Subordinated
Notes, in an aggregate principal amount not in excess of $275,000,000 at any
time outstanding;

 

(h)  Indebtedness acquired or assumed by
either Borrower or any Subsidiary in connection with any Permitted Acquisition
(i) in an aggregate principal amount not in excess of $5,000,000 at any time
outstanding or (ii) in respect of Capital Lease Obligations, Synthetic Lease
Obligations, mortgage indebtedness and industrial revenue or development bonds;
provided, however, that all such Indebtedness
existed at the time of such Permitted Acquisition and was not created in
connection therewith or in contemplation thereof;

 

(i)  unsecured subordinated Indebtedness
of Holdings or either Borrower (which may be Guaranteed by any Loan Party on a
subordinated basis), or Disqualified Capital Stock of Holdings, in an aggregate
principal (or face) amount, when combined with the aggregate principal amount
of all Indebtedness incurred pursuant to Section 6.01(h), not in excess of
$150,000,000 at any time outstanding, the proceeds of which are used to finance
the cash consideration payable in a Permitted Acquisition (including the
refinancing of Indebtedness of the Acquired Entity and the payment of related
fees and expenses), to finance cash Capital Expenditures and/or to prepay Term
Loans; provided, however, that up to $35,000,000 of such
Indebtedness may be used to finance other investments permitted by Section
6.04; provided further, however, that all such Indebtedness
(i) matures (or becomes mandatorily redeemable at the option of the holder
thereof) after the first anniversary of the Term Loan Maturity Date,
(ii) requires no scheduled payment of principal (or other scheduled
payment constituting a return of capital) prior to its maturity,
(iii) does not require Holdings or any Subsidiary to maintain any
specified financial condition (other than as a condition to the taking of
certain actions), (iv) except in the case of Disqualified Capital Stock,
contains subordination provisions that, when taken as a whole, are no less
favorable to the Lenders than the subordination provisions contained in the
Subordinated Note Documents, and (v) contains non-economic covenants,
events of default, remedies and other provisions which, when taken as a whole,
are no less favorable to Holdings and its Subsidiaries than those contained in
the Subordinated Note Documents;

 

(j)  Indebtedness under or in respect of
Hedging Agreements that are not speculative in nature;

 

(k)  Indebtedness incurred to extend,
renew or refinance any Indebtedness described in Section 6.01(a), (d), (e),
(g), (h) or (i) (“Refinancing
Indebtedness”); provided,
however, that (i) such
Refinancing Indebtedness is in an aggregate principal amount not greater than
the aggregate principal amount of the Indebtedness being extended, renewed or
refinanced, plus the amount of any interest, premiums or penalties required to
be paid thereon plus fees and expenses associated therewith, (ii) such
Refinancing Indebtedness has a later or equal final maturity and a longer or
equal weighted average life to maturity than the Indebtedness being extended,
renewed or refinanced, (iii) if the Indebtedness being extended, renewed or
refinanced is subordinated to the Obligations, the Refinancing Indebtedness is
subordinated to the

 

84

 

Obligations on terms no less favorable to the
Lenders than the Indebtedness being extended, renewed or refinanced, (iv) only
the obligors in respect of the Indebtedness being extended, renewed or
refinanced may become obligated with respect to such Refinancing Indebtedness
and (v) the non-economic covenants, events of default, remedies and other
provisions of the Refinancing Indebtedness, when taken as a whole, shall be
materially no less favorable to the Lenders than those contained in the
Indebtedness being extended, renewed or refinanced;

 

(l)  Indebtedness of a Receivables
Subsidiary incurred pursuant to a Receivables Program in an amount not
exceeding $25,000,000 in the aggregate at any time outstanding; provided, however,
that such amount may be increased to $40,000,000 (and may remain at
$40,000,000) if, immediately prior to any such increase, the Leverage Ratio was
less than 3.0 to 1.0.

 

(m)  Indebtedness of Foreign Subsidiaries
that are not Loan Parties incurred for working capital purposes in an aggregate
principal amount not exceeding $10,000,000 at any one time outstanding;

 

(n)  Indebtedness arising from the
honoring by a bank or other financial institution of a check, draft or similar
instrument drawn against insufficient funds in the ordinary course of business;
provided that such Indebtedness
is extinguished within five Business Days of its incurrence;

 

(o)  endorsements for collection, deposit
or negotiation and warranties of products and services, in each case, incurred
in the ordinary course of business;

 

(p)   unsecured Indebtedness of Holdings issued in lieu of making a
Restricted Payment permitted pursuant to Section 6.06(a) (or, in the case of a
Restricted Payment under Section 6.06(a)(v), that would be permitted but for
the relevant Event of Default provisions relating thereto);

 

(q)  unsecured Indebtedness of Holdings
incurred in lieu of paying an indemnification or reimbursement obligation to a
director or officer of Holdings or a Subsidiary pursuant to indemnification
arrangements between such persons; and

 

(r)  other Indebtedness of Holdings or the
Subsidiaries in an aggregate principal amount not exceeding $25,000,000 at any
time outstanding.

 

SECTION 6.02. 
Liens.  Create, incur, assume or permit to exist any
Lien on any property or assets (including Equity Interests or other securities
of any person, including any Subsidiary) now owned or hereafter acquired by it
or on any income or revenues or rights in respect of any thereof, except:

 

(a)  Liens existing on the date hereof and
set forth in Schedule 6.02; provided
that such Liens shall secure only those obligations which they secure on the
date hereof and any extensions, renewals and replacements thereof permitted
hereunder;

 

(b)  any Lien created under the Loan Documents;

 

85

 

(c)  any Lien existing on any property or
asset prior to the acquisition thereof by Holdings or any Subsidiary; provided that (i) such Lien is not
created in contemplation of or in connection with such acquisition,
(ii) such Lien does not apply to any other property or assets of a
Borrower or any other Subsidiary and (iii) such Lien does not materially
interfere with the use, occupancy and operation of any Mortgaged Property;

 

(d)  Liens for taxes not yet due or which
are being contested in compliance with Section 5.03;

 

(e)  carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s or other like Liens arising in the
ordinary course of business and securing obligations that are not due and
payable or which are being contested in compliance with Section 5.03;

 

(f)  pledges and deposits made in the
ordinary course of business in compliance with workmen’s compensation,
unemployment insurance and other social security laws or regulations;

 

(g)  deposits to secure the performance of
bids, trade contracts (other than for Indebtedness), leases (other than Capital
Lease Obligations), statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature incurred in the ordinary course of
business;

 

(h)  zoning restrictions, easements,
rights-of-way, restrictions on use of real property and other similar
encumbrances incurred in the ordinary course of business which, in the
aggregate, are not substantial in amount and do not materially detract from the
value of the property subject thereto or interfere with the ordinary conduct of
the business of either Borrower or any Subsidiary;

 

(i)  purchase money security interests in
real property, improvements thereto or equipment hereafter acquired (or, in the
case of improvements, constructed) by Holdings or any Subsidiary; provided that (i) such security interests
secure Indebtedness permitted by Section 6.01, (ii) such security
interests are incurred, and the Indebtedness secured thereby is created, within
180 days after such acquisition (or construction), (iii) the Indebtedness
secured thereby does not exceed 100% of the lesser of the cost or the fair
market value of such real property, improvements or equipment at the time of
such acquisition (or construction) and (iv) such security interests do not
apply to any other property or assets of Holdings or any Subsidiary;

 

(j)  Liens arising in respect of Capital
Lease Obligations and Synthetic Lease Obligations permitted under Section 6.01(e);
provided that such Liens apply
only to the property that is the subject of the related Capital Lease
Obligation or Synthetic Lease Obligation;

 

(k)  Liens arising out of judgments or
awards, in respect of which Holdings or any Subsidiary shall in good faith be
prosecuting an appeal or proceedings for review in respect of which there shall
be secured a subsisting stay of execution pending such appeal or proceedings;

 

86

 

(l)  licenses, leases or subleases granted
by either Borrower or any other Subsidiary to third persons in the ordinary
course of business not interfering in any material respect with the business of
either Borrower or any other Subsidiary;

 

(m)  Liens granted by the Receivables Subsidiary
pursuant to the Receivables Program;

 

(n)  Lien securing Indebtedness permitted
under Section 6.01(m); provided
that such Liens apply only to the assets of the Foreign Subsidiary obligated on
such Indebtedness;

 

(o)  Liens on Equity Interests of
Unrestricted Subsidiaries;

 

(p)  statutory and common law landlord’s
Liens under leases to which Holdings or any Subsidiary is a party;

 

(q)  Liens in favor of customs and revenue
authorities arising as a matter of law to secure payment of customs duties in
connection with the importation of goods;

 

(r)  Liens in respect of an agreement to
dispose of any asset, to the extent such disposal is permitted by
Section 6.05 and such Liens apply only to the assets to be disposed of;

 

(s)  Liens arising due to any cash
pooling, netting or composite accounting arrangements between any one or more
of the Borrowers and any of their Subsidiaries or between any one or more of
such persons and one or more banks or other financial institutions where any
such person maintains deposits;

 

(t)  Liens arising solely by virtue of any
statutory or common law provision relating to bankers’ liens, rights of setoff
or similar rights and remedies as to deposit accounts or other funds maintained
with a creditor depository institution;

 

(u)  Liens incurred in the ordinary course
of business on securities to secure repurchase and reverse repurchase
obligations in respect of such securities; provided
that the related repurchase agreement constitutes a Permitted Investment;

 

(v)  Liens on goods the purchase price of
which is financed by a documentary letter of credit; provided that such Lien secures only the obligations of
Holdings or a Subsidiary in respect of such letter of credit to the extent
permitted under Section 6.01; and

 

(w)  other Liens that do not, individually
or in the aggregate, secure obligations (or encumber property with a fair
market value) in excess of $10,000,000 at any one time.

 

SECTION 6.03. 
Sale and Lease-Back Transactions.  Enter into any arrangement, directly or indirectly,
with any person whereby it shall sell or transfer any property, real or
personal, used or useful in its business, whether now owned or hereafter
acquired, and thereafter rent or lease such property or other property which it
intends to use for substantially the same

 

87

 

purpose or
purposes as the property being sold or transferred unless (a) the sale of such
property is permitted by Section 6.05 and (b) any Capital Lease Obligations,
Synthetic Lease Obligations or Liens arising in connection therewith are
permitted by Sections 6.01 and 6.02, as applicable.

 

SECTION 6.04. 
Investments, Loans and Advances.  Purchase, hold or acquire any Equity
Interests, evidences of indebtedness or other securities of, make or permit to
exist any loans or advances to, or make or permit to exist any investment or
any other interest in, any other person, except:

 

(a)  (i) investments by Holdings and the
Subsidiaries existing on the Closing Date in the Equity Interests of the
Subsidiaries and (ii) additional investments by Holdings and the
Subsidiaries in the Equity Interests of the Subsidiaries; provided, however,
that (A) any such Equity Interests (other than Equity Interests in an
Immaterial Subsidiary) held by a Loan Party shall be pledged to the Applicable
Collateral Agent pursuant to the applicable Security Document (subject to the
limitations applicable to voting stock of a Foreign Subsidiary of the U.S.
Borrower referred to in the U.S. Guarantee and Collateral Agreement) and (B)
the aggregate amount of investments by Loan Parties in, and loans and advances
by Loan Parties to, Subsidiaries that are not Loan Parties (determined without
regard to any write-downs or write-offs of such investments, loans and
advances), excluding (for the avoidance of doubt) investments, loans and
advances described in Schedule 6.04, shall not exceed $25,000,000 at any time
outstanding;

 

(b)  Permitted Investments;

 

(c)  loans or advances made by Holdings to
any Subsidiary and made by any Subsidiary to Holdings or any other Subsidiary; provided, however,
that (i) any such loans and advances made by a Loan Party in an amount in
excess of $1,000,000 (other than loans and advances between or among the U.S.
Borrower and its Domestic Subsidiaries that are Loan Parties) shall be (A)
evidenced by a promissory note pledged to the Applicable Collateral Agent
pursuant to the applicable Security Document or (B) made pursuant to a loan
agreement or similar document (so long as the Loan Party making the loan or
advance thereunder has pledged its rights thereunder to the Applicable
Collateral Agent pursuant to the applicable Security Document) and (ii) the
amount of such loans and advances made by Loan Parties to Subsidiaries that are
not Loan Parties shall be subject to the limitation set forth in clause (a)
above;

 

(d)  investments received in connection
with the bankruptcy or reorganization of, or settlement of delinquent accounts
and disputes with, customers and suppliers, in each case in the ordinary course
of business;

 

(e)  Holdings and the Subsidiaries may
make loans and advances for corporate purposes to employees of Holdings and the
Subsidiaries so long as the aggregate principal amount thereof at any time
outstanding (determined without regard to any write-downs or write-offs of such
loans and advances) shall not exceed $5,000,000 at any time;

 

88

 

(f)  Holdings and the Subsidiaries may
enter into Hedging Agreements that are not speculative in nature;

 

(g)  Holdings or any Subsidiary may
acquire all or substantially all the assets of a person or line of business of
such person, or not less than 80% of the Equity Interests of a person (referred
to herein as the “Acquired
Entity”); provided,
however, that (i) such
acquisition was not preceded by an unsolicited tender offer for such Equity
Interests by, or proxy contest initiated by, Holdings or any Subsidiary;
(ii) the Acquired Entity shall be a going concern and shall be in a
similar line of business as that of a Borrower and its Subsidiaries as
conducted during the current and most recent calendar year; (iii) at the
time of such transaction (A) both before and after giving effect thereto,
no Event of Default or Default shall have occurred and be continuing;
(B) Holdings would be in Pro Forma Compliance; (C) after giving
effect to such acquisition, there must be at least $15,000,000 of unused and
available Revolving Commitments and unrestricted cash on hand at Holdings and
the Subsidiaries on a consolidated basis; and (D) except to the extent
consisting of, or financed with the proceeds of, Equity Interests of Holdings
(other than Disqualified Capital Stock), the total consideration paid in
connection with such acquisition and any other acquisitions pursuant to this
Section 6.04(g) (including any Indebtedness of the Acquired Entity that is
assumed, refinanced or repaid by Holdings or any of its Subsidiaries in
connection with or following such acquisition and the cash payments in respect
of Incentive Arrangements of a type described in clause (a) or (d) of the
definition thereof made with respect to such acquisition and previous Permitted
Acquisitions) shall not in the aggregate exceed $250,000,000 (not more than
$50,000,000 of such consideration may be expended with respect to acquisitions
of Acquired Entities a majority of the earnings before interest, taxes,
depreciation and amortization of which are derived, or a majority of the book
value of the assets of which are located, outside the United States); (iv) Holdings
and the Subsidiaries shall comply, and shall cause the Acquired Entity to
comply, with the applicable provisions of Section 5.09 and the Security
Documents; and (v) if the Acquired Entity would not constitute a wholly
owned Subsidiary and would be required to become a Subsidiary Guarantor
hereunder, each holder of an Equity Interest therein (other than Holdings or
any wholly owned Subsidiary) shall have executed and delivered to the
Applicable Collateral Agent a Minority Holder Acknowledgement, Consent and
Waiver (any acquisition of an Acquired Entity meeting all the criteria of this
Section 6.04(g) being referred to herein as a “Permitted Acquisition”);

 

(h)  acquisitions of, investments in, and loans
and advances to, Unrestricted Subsidiaries and joint ventures so long as the
aggregate amount invested, loaned or advanced pursuant to this
paragraph (h) (determined without regard to any write-downs or write-offs
of such investments, loans or advances) does not exceed $15,000,000 in the aggregate
at any time outstanding;

 

(i)  the Subsidiaries may acquire and hold
non-cash consideration issued by the purchaser of assets in connection with a
sale of such assets to the extent permitted by Section 6.05;

 

89

 

(j)  investments, loans and advances
existing on the date hereof and set forth in Schedule 6.04, and extensions,
replacements and renewals thereof;

 

(k)  investments by any person existing at
the time such person became a Subsidiary (and extensions, replacements and
renewals thereof); provided, however, that all such investments existed
at the time such person became a Subsidiary and were not made or incurred in
connection therewith or in contemplation thereof; and

 

(l)  in addition to investments permitted
by paragraphs (a) through (k) above, additional investments, loans and advances
by Holdings and the Subsidiaries (other than investments, loans and advances to
Unrestricted Subsidiaries) so long as the aggregate amount invested, loaned or
advanced pursuant to this paragraph (l) (determined without regard to any
write-downs or write-offs of such investments, loans and advances) does not
exceed the sum of (i) $15,000,000 and (ii) 25% of the Net Cash Proceeds of a
substantially concurrent Equity Issuance, in the aggregate at any time
outstanding.

 

SECTION 6.05. 
Mergers, Amalgamations,
Consolidations, Sales of Assets and Acquisitions.  (a) Merge into, amalgamate, or consolidate
with any other person (other than the merger of the U.S. Borrower with and into
BTR as described in the preliminary statement), or permit any other person to
merge into, amalgamate or consolidate with it, or sell, transfer, lease or
otherwise dispose of (in one transaction or in a series of transactions) all or
substantially all of the assets (whether now owned or hereafter acquired) of
either Borrower or less than all the Equity Interests of any Subsidiary, or
purchase, lease or otherwise acquire (in one transaction or a series of
transactions) all or any substantial part of the assets of any other person,
except that if at the time thereof and immediately after giving effect thereto
no Event of Default or Default shall have occurred and be continuing
(i) any wholly owned Subsidiary may merge into or amalgamate with either
Borrower in a transaction in which such Borrower is the surviving or continuing
corporation, (ii) any wholly owned Subsidiary may merge into, amalgamate
or consolidate with any other wholly owned Subsidiary in a transaction in which
the surviving or continuing entity is a wholly owned Subsidiary and no person
other than a Borrower or a wholly owned Subsidiary receives any consideration
(provided that if any party to any such transaction is a Loan Party, the
surviving entity of such transaction shall be a Loan Party) and (iii) the
Borrowers and the other Subsidiaries may make Permitted Acquisitions.

 

(b)  Engage in any Asset Sale otherwise permitted
under paragraph (a) above unless (i) such Asset Sale is for consideration
at least 75% of which is cash or Permitted Investments, (ii) such consideration
is at least equal to the fair market value of the assets being sold,
transferred, leased or disposed of and (iii) the fair market value of all
assets sold, transferred, leased or disposed of pursuant to this paragraph (b)
shall not exceed (x) $25,000,000 in the aggregate with respect to assets of the
U.S. Borrower and its Domestic Subsidiaries and (y) $75,000,000 in the
aggregate with respect to all Asset Sales; provided, however, that, so long as
any Term B-2 Loans remain outstanding, not more than $10,000,000 of the Net
Cash Proceeds of Assets Sales of the European Borrower and its Subsidiaries may
be reinvested pursuant to the definition of the term “Net Cash Proceeds” and,
instead, must be used to prepay the Term Loans (or, if Holdings elects pursuant
to Section 2.13(f), Term B-2 Loans) pursuant to Section 2.13(b).

 

90

 

SECTION 6.06. 
Restricted Payments; Restrictive
Agreements.  (a) Declare or
make, or agree to declare or make, directly or indirectly, any Restricted
Payment (including pursuant to any Synthetic Purchase Agreement), or incur any
obligation (contingent or otherwise) to do so; provided,
however, that (i) any
Subsidiary may declare and pay dividends or make other distributions ratably to
its equity holders, (ii) Holdings and any Subsidiary may pay or make
dividends or distributions to any holder of its Equity Interests in the form of
additional shares of Equity Interests of the same class, and may exchange one
class or type of Equity Interests with shares of another class or type of
Equity Interests (other than Disqualified Capital Stock for Equity Interests
that are not Disqualified Capital Stock), (iii) Holdings may, and Holdings
may make distributions directly or indirectly to an Ultimate Parent so that the
Ultimate Parent may, repurchase Equity Interests of Holdings or such Ultimate
Parent, respectively, with the proceeds received by Holdings or such Ultimate
Parent from the substantially concurrent sale of Equity Interests of Holdings
or such Ultimate Parent (in the case of such sale of Equity Interests of such
Ultimate Parent, to the extent such proceeds are contributed directly or
indirectly to Holdings as common equity), provided
that such sale was not part of an Equity Issuance, (iv) repurchases of
Equity Interests deemed to occur upon the exercise of stock or share options,
warrants or similar rights if such Equity Interests represent a portion of the
exercise price of such options, warrants or other similar rights, and cash
payments in lieu of the issuance of fractional shares in connection with the
exercise of warrants, options or other securities convertible into or
exchangeable for Equity Interests of Holdings, shall be permitted, (v) so
long as no Event of Default shall have occurred and be continuing or would
result therefrom, Holdings may, and Holdings may make distributions directly or
indirectly to an Ultimate Parent so that the Ultimate Parent may, repurchase
Equity Interests of Holdings or such Ultimate Parent owned by employees of
Holdings, such Ultimate Parent or the Subsidiaries or make payments to
employees of Holdings, such Ultimate Parent or the Subsidiaries upon
termination of employment in connection with the exercise of stock or share
options, stock or share appreciation rights or similar equity incentives or
equity based incentives pursuant to management incentive plans or in connection
with the death or disability of such employees in an aggregate amount not to
exceed $2,500,000 in any fiscal year (it being agreed that (A) any amount
not utilized in any fiscal year may be carried forward and utilized in any
subsequent fiscal year, provided
that the aggregate amount of such repurchases and other payments shall not
exceed $5,000,000 in any fiscal year and (B) any proceeds of key man life
insurance actually received by Holdings may be used or distributed by Holdings
for purposes of such repurchases without regard to such amounts),
(vi) Holdings may make Restricted Payments to an Ultimate Parent in an
amount not to exceed $1,000,000 in any fiscal year, to the extent necessary to
pay general corporate and overhead expenses incurred by such Ultimate Parent in
the ordinary course of business; provided,
however, that all Restricted
Payments made to an Ultimate Parent pursuant to this clause (vii) are used
by such Ultimate Parent for the purposes specified herein within 20 days
of the receipt thereof, (viii) Holdings may make Tax Distributions,
(ix) any Borrower and any Subsidiary may make Restricted Payments to
Holdings or an Ultimate Parent to enable Holdings or an Ultimate Parent to pay
management, consulting or advisory fees pursuant to the Management Consulting
Agreement to the extent permitted pursuant to clause (d) of
Section 6.07, (x) so long as no Event of Default shall have occurred
and be continuing or would result therefrom, Holdings may pay regularly
scheduled cash dividends on Disqualified Capital Stock, and (xi) Holdings or
any Subsidiary may consummate any transaction permitted by Section 6.09(b) with
respect to Disqualified Capital Stock.

 

91

 

(b)  Enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any
condition upon (i) the ability of Holdings or any Subsidiary to create, incur
or permit to exist any Lien upon any of its property or assets to secure the
Obligations or (ii) the ability of any Subsidiary to pay dividends or
other distributions with respect to any of its Equity Interests or to make or
repay loans or advances to Holdings or any other Subsidiary or to Guarantee
Indebtedness of Holdings or any Subsidiary; provided, however,
that (A) the foregoing shall not apply to restrictions and conditions
imposed by applicable law, regulation or order of any Governmental Authority,
or by any Loan Document, (B) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a
Subsidiary pending such sale, provided  further, that such restrictions
and conditions apply only to the Subsidiary that is to be sold and such sale is
permitted hereunder, (C) clause (i) of the foregoing shall not apply
to restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Indebtedness,
(D) clause (i) of the foregoing shall not apply to customary
provisions in leases and other contracts restricting the assignment thereof,
(E) the foregoing shall not apply to restrictions and conditions imposed
under Indebtedness permitted under Sections 6.01(h) or 6.01(k), or under
Indebtedness of Foreign Subsidiaries permitted under Section 6.01(m), and (F)
the foregoing shall not apply to restrictions and conditions imposed under the
terms of any agreement entered into in connection with the Receivables Program,
provided,
further,
that such restrictions and conditions apply only to a Receivables Subsidiary.

 

SECTION 6.07. 
Transactions with Affiliates.  Except for transactions by or among Loan
Parties, sell or transfer any property or assets to, or purchase or acquire any
property or assets from, or otherwise engage in any other transactions with,
any of its Affiliates, except that (a) Holdings or any Subsidiary may
engage in any of the foregoing transactions in the ordinary course of business
at prices and on terms and conditions not less favorable to Holdings or such
Subsidiary than could be obtained on an arm’s-length basis from unrelated third
parties, (b) dividends may be paid to the extent provided in
Section 6.06, (c) loans, investments and advances may be made to the
extent permitted by Sections 6.01 and 6.04, (d) so long as no Event of Default
shall have occurred and be continuing, Holdings and the Subsidiaries may pay
management, consulting or advisory fees pursuant to the Management Consulting
Agreement, (e) Receivables may be sold pursuant to the Receivables
Program, (f) securities may be issued and other payments, awards or grants
(in cash, securities or otherwise) may be made pursuant to, or with respect to
the funding of, employment arrangements, stock or share options and stock or
share ownership plans approved by the board of directors of Holdings,
(g) reasonable fees and compensation may be paid to, and reasonable
indemnities may be provided on behalf of, officers, directors and employees of
Holdings or any Subsidiary, as determined by the board of directors of Holdings
in good faith, (h) equity securities of Holdings may be sold, and (i) fees
may be paid to any nationally recognized commercial or investment bank or any
of its Affiliates in connection with any management, financial advisory,
financing, underwriting or placement services or any other investment banking,
capital markets, banking or similar services, which fees, in the reasonable
determination of a majority of the directors of Holdings disinterested with
respect to the applicable transaction, are commercially reasonable.

 

SECTION 6.08. 
Business of Holdings, the Borrowers
and the Subsidiaries.  Engage
at any time in any business or business activity other than the business
currently conducted by Holdings and Subsidiaries and similar, related,
ancillary or complementary businesses.

 

92

 

SECTION 6.09. 
Other Indebtedness and Agreements.  (a) Permit any waiver, supplement,
modification, amendment, termination or release of (i) the Management
Consulting Agreement, or (ii) any indenture, instrument or agreement
pursuant to which any Material Indebtedness of Holdings or any Subsidiary is
outstanding if the effect of such waiver, supplement, modification, amendment,
termination or release would materially increase the obligations of Holdings or
any Subsidiary (or in the case of Material Indebtedness, confer additional
material rights on the holder of such Indebtedness) in a manner adverse to
Holdings, any Subsidiary or the Lenders.

 

(b)  Make any distribution, whether in cash,
property, securities or a combination thereof, other than regular scheduled
payments of principal and interest as and when due (to the extent not
prohibited by applicable subordination provisions), in respect of, or pay, or
offer or commit to pay, or directly or indirectly (including pursuant to any
Synthetic Purchase Agreement) redeem, repurchase, retire or otherwise acquire
for consideration, or set apart any sum for the aforesaid purposes, any
Disqualified Capital Stock or any Indebtedness which is subordinate or junior
in right of payment to the Obligations pursuant to a written agreement to that
effect (provided,
however, that, so long as no Default then exists or would occur as a
result thereof, any of the foregoing may be effected with that portion of the
Net Cash Proceeds of any substantially concurrent Equity Issuance that is not
required to be applied to prepay Term Loans in accordance with Section
2.13(c)).

 

SECTION 6.10. 
Interest Coverage Ratio.  Permit the Interest Coverage Ratio for any
period of four consecutive fiscal quarters, in each case taken as one
accounting period, ending on the last day of any fiscal quarter (commencing
with the first quarter ending on March 31, 2004) during any period set
forth below to be less than the ratio set forth opposite such period below:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Closing Date through March 31, 2006

  	
   

  	
  2.00 to 1.00

  	
   

  
	
  April 1, 2006 through March 31, 2007

  	
   

  	
  2.05 to 1.00

  	
   

  
	
  April 1, 2007 through March 31, 2008

  	
   

  	
  2.15 to 1.00

  	
   

  
	
  April 1, 2008 through March 31, 2009

  	
   

  	
  2.25 to 1.00

  	
   

  
	
  April 1, 2009 through March 31, 2010

  	
   

  	
  2.35 to 1.00

  	
   

  
	
  Thereafter

  	
   

  	
  2.50 to 1.00

  	
   

  

 

SECTION 6.11. 
Fixed Charge Coverage Ratio.  Permit the Fixed Charge Coverage Ratio for
any period of four consecutive fiscal quarters, in each case taken as one
accounting period, ending on the last day of any fiscal quarter (commencing
with the fiscal quarter ending on March 31, 2004) during any period set
forth below to be the less than the ratio set forth opposite such period below:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Closing Date through March 31, 2006

  	
   

  	
  1.00 to 1.00

  	
   

  
	
  April 1, 2006 through March 31, 2008

  	
   

  	
  1.05 to 1.00

  	
   

  
	
  April 1, 2008 through March 31, 2009

  	
   

  	
  1.10 to 1.00

  	
   

  
	
  Thereafter

  	
   

  	
  1.15 to 1.00

  	
   

  

 

93

 

SECTION 6.12. 
Maximum Leverage Ratio.  Permit the Leverage Ratio as of the last day
of any fiscal quarter (commencing with the fiscal quarter ending on
March 31, 2004) ending during a period set forth below to be greater than
the ratio set forth opposite such period below:

 

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Closing Date through March 31, 2005

  	
   

  	
  5.95 to 1.00

  	
   

  
	
  April 1, 2005 through March 31, 2006

  	
   

  	
  5.90 to 1.00

  	
   

  
	
  April 1, 2006 through March 31, 2007

  	
   

  	
  5.50 to 1.00

  	
   

  
	
  April 1, 2007 through March 31, 2008

  	
   

  	
  5.00 to 1.00

  	
   

  
	
  April 1, 2008 through March 31, 2009

  	
   

  	
  4.50 to 1.00

  	
   

  
	
  April 1, 2009 through March 31, 2010

  	
   

  	
  4.00 to 1.00

  	
   

  
	
  Thereafter

  	
   

  	
  3.75 to 1.00

  	
   

  

 

SECTION 6.13. 
Fiscal Year.  With respect to Holdings and the Borrowers,
change their fiscal year-end to a date other than March 31.

 

ARTICLE VII

 

Events of Default

 

In case of the happening of any of the following events (“Events of Default”):

 

(a)  any representation or warranty made or
deemed made in or in connection with any Loan Document or the borrowings or
issuances of Letters of Credit hereunder, or any representation, warranty,
statement or information contained in any report, certificate, financial
statement or other instrument furnished in connection with or pursuant to any
Loan Document, shall prove to have been false or misleading in any material
respect when so made, deemed made or furnished;

 

(b)  default shall be made in the payment of any
principal of any Loan or the reimbursement with respect to any L/C Disbursement
when and as the same shall become due and payable, whether at the due date
thereof or at a date fixed for prepayment thereof or by acceleration thereof or
otherwise;

 

(c)  default shall be made in the payment of any
interest on any Loan or L/C Disbursement or any Fee or any other amount (other
than an amount referred to in (b) above) due under any Loan Document, when and
as the same shall become due and payable, and such default shall continue
unremedied for a period of (i) five Business Days, in the case of any such
interest or Fees or (ii) 15 Business Days, in the case of any such other
amount;

 

(d)  default shall be made in the due observance
or performance by Holdings or any Subsidiary of any covenant, condition or
agreement contained in Section 5.01(a), 5.05 or 5.08 or in Article VI;

 

(e)  default shall be made in the due observance
or performance by Holdings or any Subsidiary of any covenant, condition or
agreement contained in any Loan Document (other than

 

94

 

those
specified in (b), (c) or (d) above) and such default shall continue unremedied
for a period of 30 days after notice thereof from the General Administrative
Agent or any Lender to Holdings;

 

(f)  (i) 
Holdings or any Subsidiary shall fail to pay any principal or interest,
regardless of amount, due in respect of any Material Indebtedness, when and as
the same shall become due and payable, or (ii) any other event or condition
occurs that results in any Material Indebtedness becoming due prior to its
scheduled maturity or that enables or permits (with or without the giving of
notice, the lapse of time or both) the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity; provided,  however, that this clause (ii) shall not apply to secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of
the property or assets securing such Indebtedness;

 

(g)  an involuntary proceeding shall be commenced
or an involuntary petition shall be filed in a court of competent jurisdiction
seeking (i) relief in respect of Holdings or any Subsidiary (other than an
Immaterial Subsidiary), or of a substantial part of the property or assets of
Holdings or any Subsidiary (other than an Immaterial Subsidiary), under Title
11 of the United States Code, as now constituted or hereafter amended, or any
other Federal, state or foreign bankruptcy, insolvency, receivership or similar
law, (ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for Holdings or any Subsidiary (other than an
Immaterial Subsidiary) or for a substantial part of the property or assets of
Holdings or any Subsidiary (other than an Immaterial Subsidiary) or (iii) the
winding-up or liquidation of Holdings or any Subsidiary (other than an
Immaterial Subsidiary); and such proceeding or petition shall continue
undismissed for 60 days or an order or decree approving or ordering any of
the foregoing shall be entered;

 

(h)  Holdings or any Subsidiary (other than an
Immaterial Subsidiary) shall (i) voluntarily commence any proceeding or
file any petition seeking relief under Title 11 of the United States Code, as
now constituted or hereafter amended, or any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in (g) above,
(iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for Holdings or any
Subsidiary (other than an Immaterial Subsidiary) or for a substantial part of
the property or assets of Holdings or any Subsidiary (other than an Immaterial
Subsidiary), (iv) file an answer admitting the material allegations of a
petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors, (vi) become unable, admit in
writing its inability or fail generally to pay its debts as they become due or
(vii) take any action for the purpose of effecting any of the foregoing;

 

(i)  one or more judgments shall be rendered
against Holdings or any Subsidiary or any combination thereof and the same
shall remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be legally taken
by a judgment creditor to levy upon assets or properties of Holdings or any
Subsidiary to enforce any such judgment and such judgment is for the payment of
money in an aggregate amount in excess

 

95

 

of $15,000,000
(to the extent not adequately covered by insurance as to which the insurance
company has not denied coverage);

 

(j)  an ERISA Event shall have occurred that, in
the reasonable opinion of the Required Lenders, when taken together with all
other such ERISA Events, could reasonably be expected to result in liability of
the Borrower and its ERISA Affiliates in an aggregate amount exceeding
$15,000,000;

 

(k)  any Guarantee under the U.S. Guarantee and
Collateral Agreement or the European Guarantee Agreement for any reason shall
cease to be in full force and effect (other than in accordance with its terms),
or any Guarantor shall deny in writing that it has any further liability under
the U.S. Guarantee and Collateral Agreement or the European Guarantee Agreement
(other than as a result of the discharge of such Guarantor in accordance with
the terms of the Loan Documents);

 

(l)  any security interest purported to be
created by any Security Document shall cease to be, or shall be asserted by any
Loan Party not to be, a valid, perfected, first priority (except as otherwise
expressly provided in this Agreement or such Security Document) security
interest in the securities, assets or properties covered thereby, except to the
extent that any such loss of perfection or priority results from the failure of
the Applicable Collateral Agent to maintain possession of certificates
representing securities pledged under the U.S. Guarantee and Collateral
Agreement or a European Pledge Agreement and except to the extent that such
loss is covered by a lender’s title insurance policy and the related insurer
promptly after such loss shall have acknowledged in writing that such loss is
covered by such title insurance policy;

 

(m)  the Indebtedness under the Subordinated
Notes or any Guarantees thereof shall cease, for any reason (other than a
failure by the General Administrative Agent or any other Secured Party to take
any action required to be taken by it thereunder), to be validly subordinated
to the Obligations, as provided in the Subordinated Note Documents, or any Loan
Party shall so assert; or

 

(n)  there shall have occurred a Change in
Control;

 

then, and in
every such event (other than an event with respect to Holdings or either
Borrower described in paragraph (g) or (h) (other than
clause (vii) thereof) above), and at any time thereafter during the
continuance of such event, the General Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrowers, take either
or both of the following actions, at the same or different times:  (i) terminate forthwith the Commitments
and (ii) declare the Loans then outstanding to be forthwith due and
payable in whole or in part, whereupon the principal of the Loans so declared
to be due and payable, together with accrued interest thereon and any unpaid
accrued Fees and all other liabilities of Holdings and the Borrowers accrued
hereunder and under any other Loan Document, shall become forthwith due and
payable, without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived by Holdings and the Borrowers,
anything contained herein or in any other Loan Document to the contrary
notwithstanding; and in any event with respect to Holdings or either Borrower
described in paragraph (g) or (h) (other than clause (vii) thereof) above,
the Commitments shall automatically terminate and the principal of the Loans
then outstanding,

 

96

 

together with
accrued interest thereon and any unpaid accrued Fees and all other liabilities
of Holdings and the Borrowers accrued hereunder and under any other Loan
Document, shall automatically become due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived by Holdings and the Borrowers, anything contained herein or in
any other Loan Document to the contrary notwithstanding.

 

ARTICLE VIII

 

The Administrative Agents and the Collateral
Agents

 

Each of the Lenders and the Issuing Bank hereby irrevocably appoints
each of the General Administrative Agent, the European Administrative Agent,
the U.S. Collateral Agent and the European Collateral Agent (for purposes of
this Article VIII, referred to collectively as the “Agents”) its agent and authorizes the Agents
to take such actions on its behalf and to exercise such powers as are delegated
to such Agent by the terms of the Loan Documents, together with such actions
and powers as are reasonably incidental thereto.  Without limiting the generality of the foregoing, the Agents are
hereby expressly authorized to execute any and all documents (including
releases) with respect to the Collateral and the rights of the Secured Parties
with respect thereto, as contemplated by and in accordance with the provisions
of this Agreement and the Security Documents.

 

The bank or banks serving as an 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 an Agent, and such bank and its
Affiliates may accept deposits from, lend money to and generally engage in any
kind of business with Holdings or any Subsidiary or other Affiliate thereof as
if it were not an Agent hereunder.

 

No Agent shall have any duties or obligations except those expressly
set forth in the Loan Documents. 
Without limiting the generality of the foregoing, (a) no Agent shall be
subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) no Agent shall have any duty to
take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby that such Agent is required to
exercise in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be necessary under the circumstances as provided in
Section 9.08), and (c) except as expressly set forth in the Loan
Documents, no Agent shall have any duty to disclose, nor shall it be liable for
the failure to disclose, any information relating to Holdings or any Subsidiary
that is communicated to or obtained by the bank or banks serving as an Agent or
any of its Affiliates in any capacity. 
No Agent shall be liable for any action taken or not taken by it with
the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.08) or in the absence of its own gross negligence or
wilful misconduct.  No Agent shall be
deemed to have knowledge of any Default unless and until written notice thereof
is given to such Agent by Holdings, a Borrower or a Lender, and no Agent shall
be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with any Loan
Document, (ii) the contents of any certificate, report or other document
delivered thereunder or in connection therewith, (iii) the performance or
observance of

 

97

 

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

 

Each 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 believed by it to be genuine
and to have been signed or sent by the proper person.  Each Agent may also 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.  Each Agent may consult with legal counsel (who may be counsel for
Holdings and the Borrowers), 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.

 

Each Agent may perform any and all its duties and exercise its rights
and powers by or through any one or more sub-agents appointed by it.  Each Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers by or through
their respective Related Parties.  The
exculpatory provisions of the preceding paragraphs shall apply to any such
sub-agent and to the Related Parties of each 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 Agent.

 

Subject to the appointment and acceptance of a successor Agent as
provided below, any Agent may resign at any time by notifying the Lenders, the
Issuing Bank and the Borrowers.  Upon
any such resignation, the Required Lenders shall have the right, in
consultation with Holdings, to appoint a successor.  If no successor shall have been so appointed by the Required
Lenders and shall have accepted such appointment within 30 days after the
retiring Agent gives notice of its resignation, then the retiring Agent may, on
behalf of the Lenders and the Issuing Bank, appoint a successor Agent which
shall be a bank with an office in New York, New York, or an Affiliate of any
such bank.  Upon the acceptance of its
appointment as Agent hereunder by a successor (which successor shall, so long
as no Event of Default has occurred and is continuing, be subject to the approval
of the Borrowers (such approval not to be unreasonably withheld or delayed)),
such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations hereunder. The fees payable by the
Borrowers to a successor Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrowers and such
successor.  After an Agent’s resignation
hereunder, the provisions of this Article and Section 9.05 shall continue
in effect for the benefit of such retiring 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 acting as Agent.

 

Each Lender acknowledges that it has, independently and without
reliance upon the Agents or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. 
Each Lender also acknowledges that it will, independently and without
reliance upon the Agents or any other

 

98

 

Lender 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 or any other Loan Document, any related agreement or any document
furnished hereunder or thereunder.

 

The European Collateral Agent shall administer all German Pledge
Agreements or other European Security Documents which are transferred to any
European Secured Party under an accessory security right in the name and on
behalf of the European Secured Parties pursuant to the laws of the Federal
Republic of Germany.  With respect to
the German Pledge Agreements, each Lender hereby authorizes the European
Collateral Agent, on behalf of such Lender and as such Lender’s representative,
to (i) accept any pledge made to such Lender or the creation of any accessory
security right in favor of such Lender (under the laws of the Federal Republic
of Germany) in relation to this Agreement or any other Loan Document, (ii)
execute all amendments and alterations to any German Pledge Agreement which
creates a pledge or any other accessory security right and (iii) release any
German Pledge Agreement in accordance with this Agreement or any other Loan
Document.

 

ARTICLE IX

 

Miscellaneous

 

SECTION 9.01. 
Notices.  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 telecopy, as
follows:

 

(a)  if to the U.S. Borrower or Holdings,
to it at 8609 Six Forks Road, Raleigh, N.C. 27615, Attention of Peter Mainz
(Fax No. (919) 845-3545), with a copy to The Jordan Company, L.P., to it at 767
Fifth Avenue, 48th Floor, New York, NY 10153, Attention of Jonathan
F. Boucher (Fax No. (212) 755-5263);

 

(b)  if to the European Borrower, to it at
8609 Six Forks Road, Raleigh, N.C. 27615, Attention of Peter Mainz (Fax No.
(919) 845-3545), with a copy to The Jordan Company, L.P., to it at 767 Fifth
Avenue, 48th Floor, New York, NY 10153, Attention of Jonathan F.
Boucher (Fax No. (212) 755-5263);

 

(c)  if to the General Administrative
Agent, the U.S. Collateral Agent, the Swingline Lender (with respect to U.S.
Swingline Loans) or the Issuing Bank (with respect to U.S. Letters of Credit),
to Credit Suisse First Boston, Eleven Madison Avenue, New York, NY 10010,
Attention of Agency Group (Fax No. (212) 325-8304);

 

(d)  if to the European Administrative
Agent, the European Collateral Agent, the Swingline Lender (with respect to
European Swingline Loans) or the Issuing Bank (with respect to European Letters
of Credit) to Credit Suisse First Boston, One Cabot Square, London E14 4QJ
United Kingdom, Attention of Agency Group (Fax No. +44 207 888 8125); and

 

99

 

(e)  if to a Lender, to it at its address
(or fax number) set forth on Schedule 2.01 or in the Assignment and
Acceptance pursuant to which such Lender shall have become a party hereto.

 

All notices
and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of
receipt if delivered by hand or overnight courier service or sent by fax or on
the date five Business Days after dispatch by certified or registered mail if
mailed, in each case delivered, sent or mailed (properly addressed) to such
party as provided in this Section 9.01 or in accordance with the latest
unrevoked direction from such party given in accordance with this
Section 9.01.  As agreed to among
Holdings, the Borrowers, the Applicable Administrative Agent and the applicable
Lenders from time to time, notices and other communications may also be
delivered by e-mail to the e-mail address of a representative of the applicable
person provided from time to time by such person.

 

SECTION 9.02. 
Survival of Agreement.  All covenants, agreements, representations
and warranties made by the Borrowers or Holdings herein and in the certificates
or other instruments prepared or delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the Lenders and the Issuing Bank and shall survive the making by
the Lenders of the Loans and the issuance of Letters of Credit by the Issuing
Bank, regardless of any investigation made by the Lenders or the Issuing Bank
or on their behalf, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any Fee or any other amount
payable under this Agreement or any other Loan Document is outstanding and
unpaid or any Letter of Credit is outstanding and so long as the Commitments
have not been terminated.  The
provisions of Sections 2.14, 2.16, 2.20 and 9.05 shall remain operative
and in full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the expiration of the Commitments, the
expiration of any Letter of Credit, the invalidity or unenforceability of any
term or provision of this Agreement or any other Loan Document, or any investigation
made by or on behalf of either Administrative Agent, either Collateral Agent,
any Lender or the Issuing Bank.

 

SECTION 9.03. 
Binding Effect.  This Agreement shall become effective when
it shall have been executed by each Borrower, Holdings and the General
Administrative Agent and when the General Administrative Agent shall have
received counterparts hereof which, when taken together, bear the signatures of
each of the other parties hereto.

 

SECTION 9.04. 
Successors and Assigns.  (a) Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the
permitted successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of the Borrowers, Holdings, the Administrative
Agents, the Collateral Agents, the Issuing Bank or the Lenders that are
contained in this Agreement shall bind and inure to the benefit of their
respective successors and assigns.

 

(b)  Each Lender may assign to one or more
assignees all or a portion of its interests, rights and obligations under this
Agreement (including all or a portion of its Commitments and the Loans at the
time owing to it); provided, however,
that (i) (A) the General Administrative

 

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Agent (and, in
the case of any assignment of a Revolving Commitment, the Issuing Bank and the
Swingline Lender) and the applicable Borrower must give their prior written
consent to such assignment (which consent shall not be unreasonably withheld or
delayed) (provided that the
consent of the applicable Borrower shall not be required with respect to any
assignment (x) of a Term Loan to a Lender or an Affiliate or Related Fund
of a Lender or (y) during the continuance of any Event of Default) and
(B) unless such assignment is made to a Lender or an Affiliate or Related
Fund of a Lender and subject to clause (iii) below, the amount of the Loans or
Commitments of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance with respect to such assignment is
delivered to the General Administrative Agent) shall not be less than
$1,000,000 in respect of Term Loans or Term Loan Commitments (or, if less, the
entire remaining amount of such Term Lender’s Term Loans or Term Loan
Commitments) or $1,000,000 (or, in the case of an assignment by any Revolving
Lender whose Revolving Commitment is greater than $10,000,000 as of the date
hereof, $2,500,000) in respect of Revolving Loans or Revolving Commitments (or,
if less, the entire remaining amount of such Revolving Lender’s Revolving Loans
or Revolving Commitments), (ii) following any partial assignment of
Commitments or Loans, each of the assignor and the assignee shall have
(A) if such assignment is in respect of Term Loans or Term Loan
Commitments, Term Loans and/or Term Loan Commitments aggregating at least
$1,000,000 and (B) if such assignment is in respect of Revolving Loans or
Revolving Commitments, Revolving Loans and/or Revolving Commitments aggregating
at least $1,000,000 (or, in the case of an assignment by any Revolving Lender
whose Revolving Commitment is greater than $10,000,000 as of the date hereof,
$2,500,000), (iii) no assignment of any Lender’s Term B-1 Loans or Term
B-1 Commitment, as applicable, may be made unless a pro rata portion of the
such Lender’s Term B-2 Loans or Term B-2 Commitment, as applicable, is assigned
simultaneously to the same assignee, and vice versa (and the amount of any Term
B-1 Loans and Term B-2 Loans, or Term B-1 Commitment or Term B-2 Commitment, as
applicable, shall be aggregated for purposes of determining compliance with the
minimum assignment amounts set forth in clause (i)(B) above), (iv) the parties
to each such assignment shall (A) electronically execute and deliver to the
General Administrative Agent an Assignment and Acceptance via an electronic
settlement system acceptable to the General Administrative Agent (which
initially shall be ClearPar, LLC) or (B) if no such system shall then be
being utilized by the General Administrative Agent, manually execute and
deliver to the General Administrative Agent an Assignment and Acceptance,
together with a processing and recordation fee of $3,500 (unless such fee is
waived at the discretion of the General Administrative Agent) and (v) the
assignee, if it shall not be a Lender, shall deliver to the General
Administrative Agent an Administrative Questionnaire and all applicable tax
documentation.  Upon acceptance and
recording pursuant to paragraph (e) of this Section 9.04, from and after
the effective date specified in each Assignment and Acceptance, (A) the
assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of
a Lender under this Agreement and (B) the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and Acceptance, be
released from its obligations under this Agreement, but for the avoidance of
doubt, the European Borrower and the Lenders hereby expressly accept and
confirm that, for the purpose of article 1278 and following of the Luxembourg
civil code, notwithstanding any assignment, transfer and/or novation permitted
under and made in accordance with this Section 9.04, the European Obligations
created by and under any of the Loan Documents shall be preserved for the
benefit of the assignee (and, in the

 

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case of an
Assignment and Acceptance covering all or the remaining portion of an assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease
to be a party hereto but shall continue to be entitled to the benefits of
Sections 2.14, 2.16, 2.20 and 9.05, as well as to any Fees accrued for its
account and not yet paid).

 

(c)  By executing and delivering an Assignment
and Acceptance, the assigning Lender thereunder and the assignee thereunder
shall be deemed to confirm to and agree with each other and the other parties
hereto as follows:  (i) such assigning
Lender warrants that it is the legal and beneficial owner of the interest being
assigned thereby free and clear of any adverse claim and that its Term Loan
Commitment and Revolving Commitment, and the outstanding balances of its Term
Loans and Revolving Loans, in each case without giving effect to assignments
thereof which have not become effective, are as set forth in such Assignment
and Acceptance, (ii) except as set forth in (i) above, such assigning Lender
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
this Agreement, or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement, any other Loan Document or
any other instrument or document furnished pursuant hereto, or the financial
condition of Holdings or any Subsidiary or the performance or observance by
Holdings or any Subsidiary of any of its obligations under this Agreement, any
other Loan Document or any other instrument or document furnished pursuant
hereto; (iii) such assignee represents and warrants that it is legally
authorized to enter into such Assignment and Acceptance; (iv) such assignee
confirms that it has received a copy of this Agreement, together with copies of
the most recent financial statements referred to in Section 3.05(a) or
delivered pursuant to Section 5.04 and such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to enter
into such Assignment and Acceptance; (v) such assignee will independently and
without reliance upon either Administrative Agent, either Collateral Agent,
such assigning Lender 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 this Agreement; (vi) such
assignee appoints and authorizes the Administrative Agents and the Collateral
Agents to take such action as agent on its behalf and to exercise such powers
under this Agreement as are delegated to the Administrative Agents and the
Collateral Agents, respectively, by the terms hereof, together with such powers
as are reasonably incidental thereto; and (vii) such assignee agrees that
it will perform in accordance with their terms all the obligations which by the
terms of this Agreement are required to be performed by it as a Lender.

 

(d)  The General Administrative Agent, acting for
this purpose as an agent of the Borrowers, shall maintain at one of its offices
in The City of New York a copy of each Assignment and Acceptance delivered to
it and a register for the recordation of the names and addresses of the
Lenders, and the Commitment of, and principal amount 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 Holdings, the Borrowers, the Administrative Agents, the Issuing
Bank, the Collateral Agents 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 Borrowers, the Issuing Bank, the Collateral Agents and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

 

102

 

(e)  Upon its receipt of a duly completed
Assignment and Acceptance executed by an assigning Lender and an assignee, an
Administrative Questionnaire (including all applicable tax documentation)
completed in respect of the assignee (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in paragraph
(b) above, if any, and, if required, the written consent of applicable
Borrower, the Swingline Lender, the Issuing Bank and the General Administrative
Agent to such assignment, the General Administrative Agent shall (i) accept
such Assignment and Acceptance, (ii) record the information contained
therein in the Register and (iii) give prompt notice thereof to the Borrowers,
the Issuing Bank and the Swingline Lender. 
No assignment shall be effective unless it has been recorded in the
Register as provided in this paragraph (e).

 

(f)  Each Lender may without the consent of
either Borrower, the Swingline Lender, the Issuing Bank or either
Administrative Agent sell participations to one or more banks or other entities
in all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it); provided, however, 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, (iii) the participating
banks or other entities shall be entitled to the benefit of the cost protection
provisions contained in Sections 2.14, 2.16 and 2.20 to the same extent as
if they were Lenders (but, with respect to any particular participant, to no
greater extent than the Lender that sold the participation to such
participant), and the amounts payable to any Lender under any such Sections
shall be no greater than any amount so payable in the event such Lender had not
sold or agreed to sell any participations in such rights and obligations, and
(iv) the Borrowers, the Administrative Agents, the Issuing Bank, the
Swingline Lender 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, and such Lender shall retain the sole right to enforce the
obligations of the Borrowers relating to the Loans or L/C Disbursements and to
approve any amendment, modification or waiver of any provision of this
Agreement (other than amendments, modifications or waivers decreasing any fees
payable hereunder or the amount of principal of or the rate at which interest
is payable on the Loans, extending any scheduled principal payment date or date
fixed for the payment of interest on the Loans, increasing or extending the
Commitments or releasing any Guarantor or all or substantially all of the U.S.
Collateral or the European Collateral).

 

(g)  Any Lender or participant may, in connection
with any assignment or participation or proposed assignment or participation
pursuant to this Section 9.04, disclose to the assignee or participant or
proposed assignee or participant any information relating to Holdings and its
Subsidiaries furnished to such Lender by or on behalf of Holdings and its
Subsidiaries; provided, however,
that, prior to any such disclosure of information designated by the
Borrowers as confidential, each such assignee or participant or proposed
assignee or participant shall execute an agreement whereby such assignee or
participant shall agree (subject to customary exceptions) to preserve the
confidentiality of such confidential information on terms no less restrictive
than those applicable to the Lenders pursuant to Section 9.16.

 

(h)  Any Lender may (without the consent of
either Borrower or either Administrative Agent) at any time assign all or any
portion of its rights under this Agreement to secure extensions of credit to
such Lender or in support of obligations owed by such Lender (including,

 

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if such Lender
is a fund that invests in bank loans, to a trustee for holders of obligations
owed, or securities issued, by such fund); provided, however,
that no such assignment shall release a Lender from any of its obligations
hereunder or substitute any such assignee for such Lender as a party hereto and
any foreclosure or exercise of remedies by such assignee or trustee shall be
subject to the provisions of this Section 9.04 regarding assignments in
all respects.

 

(i)  Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Lender”) may grant to a special
purpose funding vehicle (an “SPC”), identified as such in writing from time to time
by the Granting Lender to the General Administrative Agent and the Borrowers,
the option to provide to the Borrowers all or any part of any Loan that such
Granting Lender would otherwise be obligated to make to the Borrowers pursuant
to this Agreement; provided, however,
that (i) nothing herein shall constitute a commitment by any SPC to make
any Loan and (ii) if an SPC elects not to exercise such option or
otherwise fails to provide all or any part of such Loan, the Granting Lender
shall be obligated to make such Loan pursuant to the terms hereof.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPC shall be liable for
any indemnity or similar payment obligation under this Agreement (all liability
for which shall remain with the Granting Lender).  In furtherance of the foregoing, each party hereto hereby agrees
(which agreement shall survive the termination of this Agreement) that, prior
to the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior indebtedness of any SPC, it will
not institute against, or join any other person in instituting against, such
SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States or any State thereof.  In addition, notwithstanding anything to the
contrary contained in this Section 9.04, any SPC may (i) with notice
to, but without the prior written consent of, the Borrowers and the General
Administrative Agent and without paying any processing fee therefor, assign all
or a portion of its interests in any Loans to the Granting Lender or to any
financial institutions (consented to by the Borrowers and the General
Administrative Agent) providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Loans and
(ii) disclose on a confidential basis any non-public information relating
to its Loans to any rating agency, commercial paper dealer or provider of any
surety, guarantee or credit or liquidity enhancement to such SPC.

 

(j)  Neither Holdings nor either Borrower shall
assign or delegate any of its rights or duties hereunder without the prior
written consent of the General Administrative Agent, the Issuing Bank, the
Swingline Lender and each Lender, and any attempted assignment without such
consent shall be null and void.

 

(k)  In the event that (a) any Revolving Lender
shall become a Defaulting Lender, (b) Standard & Poor’s Ratings Service,
Moody’s Investors Service, Inc., and Thompson’s BankWatch (or InsuranceWatch
Ratings Service, in the case of Lenders that are insurance companies (or Best’s
Insurance Reports, if such insurance company is not rated by InsuranceWatch
Ratings Service)) shall, after the date that any Lender becomes a Revolving
Lender, downgrade the long-term certificate deposit ratings of such Lender, and
the resulting ratings shall be below BBB-, Baa3 and C (or BB, in the case of a
Lender that is an insurance company (or B, in the case of an insurance company
not rated by InsuranceWatch Ratings Service)), or (c) with respect to any
Lender that is not rated by any such ratings service or

 

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provider, the
Issuing Bank or the Swingline Lender shall have reasonably determined that
there has occurred a material adverse change in the financial condition of any
such Lender, or a material impairment of the ability of any such Lender to
perform its obligations hereunder, as compared to such condition or ability as
of the date that any such Lender became a Revolving Lender, then, in any such
case, the Issuing Bank or the Swingline Lender shall have the right, but not
the obligation, at its own expense, upon notice to such Lender and the General
Administrative Agent, to replace (or to request the Borrowers to use their
reasonable efforts to replace) such Lender with an assignee (in accordance with
and subject to the restrictions contained in paragraph (b) above), and
such Lender hereby agrees to transfer and assign without recourse (in
accordance with and subject to the restrictions contained in paragraph (b)
above) all its interests, rights and obligations in respect of its Revolving
Commitment to such assignee; provided,
however, that (i) no such assignment shall conflict with any
law, rule and regulation or order of any Governmental Authority and (ii) the
Issuing Bank, the Swingline Lender or such assignee, as the case may be, shall
pay to such Lender in immediately available funds on the date of such
assignment the principal of and interest accrued to the date of payment on the
Loans made by such Lender hereunder and all other amounts accrued for such Lender’s
account or owed to it hereunder.

 

(l)  The Loan Parties and the European Secured
Parties acknowledge that the security created under the French Pledge
Agreements are rights and obligations attached to this Agreement and will be
transferred or assigned together with all rights and obligations arising out of
this Agreement. Pursuant to article 1278 of the French Civil code, all security
governed by French law attaching to the European Lenders’ participation in the
Facilities is hereby expressly preserved for the benefit of the assignee
Lender.

 

SECTION 9.05. 
Expenses; Indemnity.  (a) The Borrowers and Holdings agree,
jointly and severally, to pay all reasonable out-of-pocket expenses incurred by
the Administrative Agents, the Collateral Agents, the Issuing Bank and the
Swingline Lender in connection with the syndication of the credit facilities
provided for herein and the preparation of this Agreement and the other Loan
Documents or in connection with any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions hereby or thereby
contemplated shall be consummated), or incurred by the Administrative Agents,
the Collateral Agents, the Issuing Bank, the Swingline Lender or any Lender in
connection with the enforcement of its rights in connection with this Agreement
and the other Loan Documents or in connection with the Loans made or Letters of
Credit issued hereunder (and, in the case of the Collateral Agents, in
connection with the protection of such rights), including the reasonable and
documented fees, charges and disbursements of Cravath, Swaine & Moore LLP,
counsel for the Administrative Agents and the Collateral Agents, and, in
connection with any such enforcement or protection, the reasonable and documented
fees, charges and disbursements of any other counsel for the Administrative
Agents, the Collateral Agents, the Issuing Bank, the Swingline Lender or any
Lender.

 

(b)  The Borrowers and Holdings agree, jointly
and severally, to indemnify each Administrative Agent, each Collateral Agent,
each Lender, the Issuing Bank, the Swingline Lender and each Related Party of
any of the foregoing persons (each such person being called an “Indemnitee”) against,
and to hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including reasonable counsel fees, charges
and

 

105

 

disbursements,
incurred by or asserted against any Indemnitee arising out of, in any way
connected with, or as a result of (i) the execution or delivery of this
Agreement or any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto or
thereto of their respective obligations hereunder or thereunder or the
consummation of the Transactions and the other transactions contemplated hereby
or thereby, (ii) the use of the proceeds of the Loans or issuance of
Letters of Credit, (iii) any claim, litigation, investigation or
proceeding relating to any of the foregoing, whether or not any Indemnitee is a
party thereto, or (iv) any actual or alleged presence or Release of Hazardous
Materials on any property currently or formerly owned or operated by Holdings
or any Subsidiary, or any Environmental Liability related in any way to
Holdings or the Subsidiaries; provided, however,
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence, wilful misconduct or bad
faith of such Indemnitee (and any Indemnitee receiving payment under this
Section 9.05(b) shall promptly refund the amount of such payment to the
extent that there is a final and nonappealable judgment of a court of competent
jurisdiction that such Indemnitee was not entitled to indemnification in
respect of such payment by virtue of such Indemnitee’s gross negligence, wilful
misconduct or bad faith).

 

(c)  To the extent that Holdings and the
Borrowers fail to pay any amount required to be paid by them to the
Administrative Agents, the Collateral Agents, the Issuing Bank, the Swingline
Lender or any related Party of the foregoing persons under paragraph (a) or (b)
of this Section, each Lender severally agrees to pay to the Administrative
Agents, the Collateral Agents, the Issuing Bank, the Swingline Lender and any
related Party of the foregoing persons, as the case may be, such Lender’s pro
rata share (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided, however, that
the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against such
Administrative Agent, Collateral Agent, Issuing Bank, Swingline Lender or
related Party of the foregoing persons in its capacity as such.  For purposes hereof, a Lender’s “pro rata
share” shall be determined based upon its share of the sum of the aggregate
Revolving Exposure, outstanding Term Loans and unused Commitments at the time.

 

(d)  To the extent permitted by applicable law,
neither Holdings nor either Borrower shall assert, and each 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
or any agreement or instrument contemplated hereby, the Transactions, any Loan
or Letter of Credit or the use of the proceeds thereof.

 

(e)  The provisions of this Section 9.05
shall remain operative and in full force and effect regardless of the
expiration of the term of this Agreement, the consummation of the transactions
contemplated hereby, the repayment of any of the Loans, the expiration of the
Commitments, the expiration of any Letter of Credit, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of either Administrative
Agent, either Collateral Agent, any Lender, the Issuing Bank, the Swingline

 

106

 

Lender or any
Related Party of the foregoing persons. 
All amounts due under this Section 9.05 shall be payable on written
demand therefor.

 

SECTION 9.06. 
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, except to the extent prohibited by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held and other indebtedness at any time owing by such Lender to or for the
credit or the account of either Borrower or Holdings against any of and all the
obligations of either Borrower or Holdings now or hereafter existing under this
Agreement and other Loan Documents held by such Lender, irrespective of whether
or not such Lender shall have made any demand under this Agreement or such
other Loan Document and although such obligations may be unmatured.  The rights of each Lender under this
Section 9.06 are in addition to other rights and remedies (including other
rights of setoff) which such Lender may have.

 

SECTION 9.07. 
Applicable Law.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
(OTHER THAN LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN
DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK.  EACH LETTER OF
CREDIT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE
LAWS OR RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO SUCH LAWS OR RULES
ARE DESIGNATED, THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS MOST
RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE SUCH LETTER OF CREDIT WAS ISSUED,
BY THE INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”) AND, AS TO
MATTERS NOT GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 9.08. 
Waivers; Amendment.  (a) No failure or delay of either
Administrative Agent, either Collateral Agent, any Lender or the Issuing Bank
in exercising any power or right hereunder or under any other Loan Document
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof
or the exercise of any other right or power. 
The rights and remedies of the Administrative Agents, the Collateral
Agents, the Issuing Bank and the Lenders hereunder and under the other Loan
Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have.  No waiver of
any provision of this Agreement or any other Loan Document or consent to any
departure by either Borrower or any other Loan Party therefrom shall in any
event be effective unless the same shall be permitted by paragraph (b) below,
and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. 
No notice or demand on either Borrower or Holdings in any case shall
entitle such Borrower or Holdings to any other or further notice or demand in
similar or other circumstances.

 

(b)  Except as expressly provided by Section
2.24(b) or 2.25, neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Borrowers, Holdings and the Required Lenders; provided, however, that no such agreement
shall (i) decrease the principal amount of, or extend the maturity of or
any scheduled principal payment date or date for the payment of any interest

 

107

 

on any Loan or
any date for reimbursement of an L/C Disbursement, or waive or excuse any such
payment or any part thereof, or decrease the rate of interest on any Loan or
L/C Disbursement, without the prior written consent of each Lender affected thereby,
(ii) increase or extend the Commitment or decrease or extend the date for
payment of any Fees or any other amount due and payable hereunder to any Lender
without the prior written consent of such Lender, (iii) amend or modify
the pro rata requirements of Section 2.17, the provisions of
Section 9.04(j), the provisions of this Section, or release any of
Holdings, the U.S. Borrower, Sensus Metering Systems - North America Inc. or
any other Guarantor that accounted for more than 10% of the Consolidated EBITDA
of Holdings and the Subsidiaries for the period of four fiscal quarters most
recently ended on or prior to the date of determination, or that had
consolidated assets representing more than 10% of the total consolidated assets
of Holdings and the Subsidiaries on the last day of the most recent fiscal
quarter ended on or prior to the date of determination (in each case, other
than in accordance with the terms of the applicable Security Document) or all
or substantially all of the U.S. Collateral or the European Collateral, without
the prior written consent of each Lender, (iv) change the provisions of
any Loan Document in a manner that by its terms adversely affects the rights in
respect of payments due to Lenders holding Loans of one Class differently from
the rights of Lenders holding Loans of any other Class without the prior
written consent of Lenders holding a majority in interest of the outstanding
Loans and unused Commitments of each adversely affected Class, (v) modify
the protections afforded to an SPC pursuant to the provisions of
Section 9.04(i) without the written consent of such SPC, or
(vi) reduce the percentage contained in the definition of the term
“Required Lenders” without the prior written consent of each Lender (it being
understood that with the consent of the Required Lenders, additional extensions
of credit pursuant to this Agreement may be included in the determination of
the Required Lenders on substantially the same basis as the Term Loan
Commitments and Revolving Commitments on the date hereof); provided  further, that no such
agreement shall amend, modify or otherwise affect the rights or duties of
either Administrative Agent, either Collateral Agent, the Issuing Bank or the
Swingline Lender hereunder or under any other Loan Document without the prior
written consent of such Administrative Agent, such Collateral Agent, the
Issuing Bank or the Swingline Lender, as applicable.  Notwithstanding the foregoing, if the terms of any amendment to
this Agreement provide that any Class of Loans will be repaid in full and the
Commitments of such Class (if any) terminated as a condition to the
effectiveness of such amendment, then so long as the Loans and Commitments (if
any) of such Class are in fact repaid and terminated upon the effectiveness of
such amendment, such Loans and Commitments shall not be included in the
determination of the Required Lenders with respect to such amendment.

 

SECTION 9.09. 
Interest Rate Limitation.  Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan or
participation in any L/C Disbursement, together with all fees, charges and
other amounts which are treated as interest on such Loan or participation in
such L/C Disbursement under applicable law (collectively the “Charges”), shall
exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan or
participation in accordance with applicable law, the rate of interest payable
in respect of such Loan or participation hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the
extent lawful, the interest and Charges that would have been payable in respect
of such Loan or participation but were not payable as a result of the operation
of this Section 9.09 shall be cumulated and the interest and Charges payable to
such

 

108

 

Lender in
respect of other Loans or participations or periods shall be increased (but not
above the Maximum Rate therefor) until such cumulated amount, together with
interest thereon at the Federal Funds Effective Rate to the date of repayment,
shall have been received by such Lender.

 

SECTION 9.10. 
Entire Agreement.  This Agreement, the Fee Letter and the other
Loan Documents constitute the entire contract between the parties relative to
the subject matter hereof.  Any other
previous agreement among the parties with respect to the subject matter hereof
is superseded by this Agreement and the other Loan Documents.  Nothing in this Agreement or in the other
Loan Documents, expressed or implied, is intended to confer upon any person
(other than the parties hereto and thereto, their respective successors and
assigns permitted hereunder (including any Affiliate of the Issuing Bank that
issues any Letter of Credit) and, to the extent expressly contemplated hereby,
the Related Parties of each of the Administrative Agents, the Collateral
Agents, the Issuing Bank and the Lenders) any rights, remedies, obligations or
liabilities under or by reason of this Agreement or the other Loan Documents.

 

SECTION 9.11. 
WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE 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 OR ANY OF THE OTHER LOAN DOCUMENTS.  EACH PARTY HERETO (A) 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 (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 9.11.

 

SECTION 9.12. 
Severability.  In the event any one or more of the
provisions contained in this Agreement or in any other Loan Document should be
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein, to
the fullest extent permitted by applicable law, shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction).  The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions.

 

SECTION 9.13. 
Counterparts.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which when taken together
shall constitute a single contract, and shall become effective as provided in
Section 9.03.  Delivery of an
executed signature page to this Agreement by facsimile transmission shall be as
effective as delivery of a manually signed counterpart of this Agreement.

 

SECTION 9.14. 
Headings.  Article and Section headings and the Table
of Contents used herein are for convenience of reference only, are not part of
this Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.

 

109

 

SECTION 9.15. 
Jurisdiction; Consent to Service of
Process.  (a) Each of
Holdings and the Borrowers hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any New York State
court or Federal court of the United States of America sitting in New York
City, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement or the other Loan Documents, or
for recognition or enforcement of any judgment, and each of the parties hereto
hereby 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
or, to the extent permitted by 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
shall affect any right that either Administrative Agent, either Collateral
Agent, the Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or the other Loan Documents against
either Borrower, Holdings or their respective properties in the courts of any
jurisdiction.

 

(b)  Each of Holdings and the Borrowers hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or the other Loan Documents in any New York State or Federal
court.  Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

 

(c)  Each party to this Agreement irrevocably
consents to service of process in the manner provided for notices in
Section 9.01 or as otherwise required by applicable law.  Nothing in this Agreement will affect the
right of any party to this Agreement to serve process in any other manner
permitted by law.

 

SECTION 9.16. 
CAM Exchange.  (a) 
On the CAM Exchange Date, (i) to the extent not prohibited by a
requirement of law, all Loans outstanding in any Currency other than Dollars
shall be converted to Dollars (calculated on the basis of the relevant Exchange
Rates as of the Business Day immediately preceding the CAM Exchange Date) and
shall be ABR Loans, and (ii) the Lenders shall automatically and without
further act be deemed to have exchanged interests in the Classes such that, in
lieu of the interests of each Lender in each Class in which it shall
participate as of such date (including such Lender’s interest in the Designated
Obligations of each Loan Party in respect of each such Class), such Lender
shall hold an interest in every one of the Classes (including the Designated
Obligations of each Loan Party in respect of each such Class but excluding
participations in undrawn Letters of Credit), whether or not such Lender shall
previously have participated therein, equal to such Lender’s CAM Percentage
thereof.  Each Lender, Holdings and each
Borrower hereby consents and agrees to the CAM Exchange, and each Lender hereby
agrees that the CAM Exchange shall be binding upon its successors and assigns
and any person that acquires a participation in its interests in any
Class.  Holdings, each Borrower and each
Lender agrees from time to time to execute and deliver to the General Administrative
Agent all such promissory notes and other instruments and documents as the
General Administrative Agent shall reasonably request to evidence and confirm
the respective interests and obligations of the Lenders after giving effect to
the CAM Exchange, and each Lender agrees to surrender any promissory notes
originally received by it in connection with its Loans hereunder to the General
Administrative Agent against delivery of any promissory notes

 

110

 

so executed
and delivered; provided, however, that the failure of any Borrower
to execute or deliver or of any Lender to accept any such promissory note,
instrument or document shall not affect the validity or effectiveness of the
CAM Exchange.  In the event that on the
CAM Exchange Date any Swingline Loan shall be outstanding (other than any
Swingline Loan in respect of which Revolving Lenders have funded their purchase
of participations pursuant to Section 2.22), then each applicable Revolving
Lender (determined immediately prior to the CAM Exchange) shall, in accordance
with the provisions of Section 2.22, promptly purchase from the Swingline
Lender a participation in such Swingline Loan in the amount of such Revolving
Lenders’ applicable Pro Rata Percentage of such Swingline Loan (determined
immediately prior to the CAM Exchange).

 

(b)  As a result of the CAM Exchange, on and
after the CAM Exchange Date, (i) each payment received by either Administrative
Agent pursuant to any Loan Document in respect of the Designated Obligations
shall be distributed to the Lenders pro rata in accordance with their
respective CAM Percentages (to be redetermined as of each such date of payment
or distribution to the extent required by paragraph (c) below) and (ii)
Section 2.20(e) shall not apply with respect to any Taxes required to be
withheld or deducted by a Borrower from or in respect of payments hereunder to
any Lender or Administrative Agent that exceed the Taxes such Borrower would
have otherwise been required to withhold or deduct from or in respect of
payments to such Lender or Administrative Agent had such CAM Exchange not
occurred.

 

(c)  In the event that, on or after the CAM
Exchange Date, the aggregate amount of the Designated Obligations shall change
as a result of the making of an L/C Disbursement by the Issuing Bank that is
not reimbursed by the applicable Borrower, then (i) each applicable
Revolving Lender (determined without giving effect to the CAM Exchange) shall,
in accordance with Section 2.23(d), promptly purchase from the Issuing Bank a
participation in such L/C Disbursement in the amount of such Revolving Lender’s
applicable Pro Rata Percentage of such L/C Disbursement (without giving effect
to the CAM Exchange) and (ii) the General Administrative Agent shall
redetermine the CAM Percentages after giving effect to such L/C Disbursement
and the purchase of participations therein by the applicable Revolving
Lenders.  Each such redetermination
shall be binding on each of the Lenders and their successors and assigns and
shall be conclusive, absent manifest error.

 

SECTION 9.17. 
Confidentiality.  (a) Each of the Administrative Agents, the
Collateral Agents, the Issuing Bank and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates’ officers, directors,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any
regulatory authority or quasi-regulatory authority (such as the National
Association of Insurance Commissioners), in which case (to the extent not
legally prohibited) the relevant Loan Party shall be informed promptly,
(c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, in which case (to the extent not legally
prohibited) the relevant Loan Party shall be informed promptly, (d) in
connection with the exercise of any remedies hereunder or under the other Loan
Documents or any suit, action or proceeding relating to the enforcement of its
rights hereunder or thereunder, (e) subject to an agreement containing
provisions substantially the same as those of this

 

111

 

Section 9.16,
to (i) any actual or prospective assignee of or participant in any of its
rights or obligations under this Agreement and the other Loan Documents or
(ii) any actual or prospective counterparty (or its advisors) to any swap
or derivative transaction relating to Holdings, either Borrower or any
Subsidiary or any of their respective obligations, (f) with the consent of
Holdings or the Borrowers or (g) to the extent such Information becomes
publicly available other than as a result of a breach of this
Section 9.17.  For the purposes of
this Section, “Information”
shall mean all information received from either Borrower or Holdings and
related to such Borrower or Holdings or their business, other than any such
information that was available to either Administrative Agent, either
Collateral Agent, the Issuing Bank or any Lender on a nonconfidential basis
prior to its disclosure by such Borrower or Holdings.  Any person required to maintain the confidentiality of
Information as provided in this Section 9.17 shall be considered to have
complied with its obligation to do so if such person has exercised the same
degree of care to maintain the confidentiality of such Information as such
person would accord its own confidential information.

 

(b)  Notwithstanding anything herein to the
contrary, any party subject to confidentiality obligations hereunder or otherwise
(and any Affiliate thereof and any employee, representative or other agent of
such party or such Affiliate) may disclose to any and all persons, without
limitation of any kind, the U.S. Federal income tax treatment and the U.S.
federal income tax structure of the transactions contemplated hereby and all
materials of any kind (including opinions or other tax analyses) that are
provided to it relating to such tax treatment and tax structure.

 

112

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

	
   

  	
  SENSUS METERING SYSTEMS INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS (LUXCO 2) S.ÀR.L.,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  SENSUS METERING SYSTEMS (BERMUDA 2) LTD.,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands branch,
  individually and as General Administrative Agent, U.S. Collateral Agent,
  Issuing Bank and Swingline Lender,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

113

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON, acting through its London branch,
  individually and as European Administrative Agent and European Collateral
  Agent,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  CREDIT SUISSE FIRST BOSTON INTERNATIONAL,

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

114

 

SIGNATURE PAGE TO

SENSUS METERING SYSTEMS

CREDIT AGREEMENT

DATED DECEMBER 17, 2003

 

 

	
   

  	
  Name of Lender:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
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  Title:

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