Document:

EXHIBIT 4.7

Systinet
Corporation

2001
Stock Option and Incentive Plan

1.   Purpose
and Eligibility

The purpose of this 2001 Stock Option and Incentive
Plan (the “Plan”) of Systinet Corporation (the “Company”) is to provide stock
options and other equity interests in the Company (each an “Award”) to
employees, officers, directors, consultants and advisors of the Company and its
Subsidiaries, all of whom are eligible to receive Awards under the Plan. Any
person to whom an Award has been granted under the Plan is called a “Participant”.
Additional definitions are contained in Section 8.

2.   Administration 

a.             Administration
by Board of Directors. The Plan will be administered by the Board of Directors
of the Company (the “Board”). The Board, in its sole discretion, shall have the
authority to grant and amend Awards, to adopt, amend and repeal rules relating
to the Plan and to interpret and correct the provisions of the Plan and any
Award. All decisions by the Board shall be final and binding on all interested
persons. Neither the Company nor any member of the Board shall be liable for
any action or determination relating to the Plan. 

b.             Appointment
of Committees. To the extent permitted by applicable law, the Board may
delegate any or all of its powers under the Plan to one or more committees or
subcommittees of the Board (a “Committee”). All references in the Plan to the
“Board” shall mean such Committee or the Board. 

c.             Delegation
to Executive Officers. To the extent permitted by applicable law, the Board may
delegate to one or more executive officers of the Company the power to grant
Awards and exercise such other powers under the Plan as the Board may
determine, provided that the Board shall fix the maximum number of Awards to be
granted and the maximum number of shares issuable to any one Participant
pursuant to Awards granted by such executive officers. 

3.   Stock Available for
Awards 

a.             Number
of Shares. Subject to adjustment under Section 3(c), the aggregate number
of shares of Common Stock of the Company (the “Common Stock”) that may be
issued pursuant to the Plan is 42,800,000 shares. If any Award expires, or is
terminated, surrendered or forfeited, in whole or in part, the unissued Common
Stock covered by such Award shall again be available for the grant of Awards
under the Plan. If shares of Common Stock issued pursuant to the Plan are
repurchased by, or are surrendered or forfeited to, the Company at no more than
cost, such shares of Common Stock shall again be available for the grant of
Awards under the Plan; provided, however, that the cumulative number of such
shares that may be so reissued under the Plan will not exceed 42,800,000
shares. Shares issued under the Plan may consist in whole or in part of
authorized but unissued shares or treasury shares. 

b.             Per-Participant
Limit. Subject to adjustment under Section 3(c), no Participant may be granted
Awards during any one fiscal year to purchase more than 2,000,000 shares of
Common Stock. 

 1
 

c.             Adjustment
to Common Stock. In the event of any stock split, stock dividend, extraordinary
cash dividend, recapitalization, reorganization, merger, consolidation,
combination, exchange of shares, liquidation, spin-off, split-up, or other
similar change in capitalization or event, (i) the number and class of
securities available for Awards under the Plan and the per-Participant share
limit, (ii) the number and class of securities, vesting schedule and
exercise price per share subject to each outstanding Option, (iii) the
repurchase price per security subject to repurchase, and (iv) the terms of
each other outstanding stock-based Award shall be adjusted by the Company (or
substituted Awards may be made) to the extent the Board shall determine, in
good faith, that such an adjustment (or substitution) is appropriate. If
Section 7(e)(i) applies for any event, this Section 3(c) shall not be
applicable. 

4.   Stock Options 

a.             General.
The Board may grant options to purchase Common Stock (each, an “Option”) and
determine the number of shares of Common Stock to be covered by each Option,
the exercise price of each Option and the conditions and limitations applicable
to the exercise of each Option and the Common Stock issued upon the exercise of
each Option, including vesting provisions, repurchase provisions and
restrictions relating to applicable federal or state securities laws, as it
considers advisable. 

b.             Incentive
Stock Options. An Option that the Board intends to be an “incentive stock
option” as defined in Section 422 of the Code (an “Incentive Stock
Option”) shall be granted only to employees of the Company and shall be subject
to and shall be construed consistently with the requirements of
Section 422 of the Code. The Board and the Company shall have no liability
if an Option or any part thereof that is intended to be an Incentive Stock
Option does not qualify as such. An Option or any part thereof that does not
qualify as an Incentive Stock Option is referred to herein as a “Nonstatutory
Stock Option.” 

c.             Exercise
Price. The Board shall establish the exercise price (or determine the method by
which the exercise price shall be determined) at the time each Option is
granted and specify it in the applicable option agreement. 

d.             Duration
of Options. Each Option shall be exercisable at such times and subject to such
terms and conditions as the Board may specify in the applicable option
agreement. 

e.             Exercise
of Option. Options may be exercised only by delivery to the Company of a
written notice of exercise signed by the proper person together with payment in
full as specified in Section 4(f) for the number of shares for which the
Option is exercised. 

f.              Payment
Upon Exercise. Common Stock purchased upon the exercise of an Option shall be
paid for by one or any combination of the following forms of payment: 

(i)            by
check payable to the order of the Company; 

(ii)           except
as otherwise explicitly provided in the applicable option agreement, and only
if the Common Stock is then publicly traded, delivery of an irrevocable and
unconditional undertaking by a creditworthy broker to deliver promptly to the
Company sufficient funds to pay the exercise price, or delivery by the
Participant to the Company of a copy of irrevocable and unconditional
instructions to a creditworthy broker to deliver promptly to the Company cash
or a check sufficient to pay the exercise price; or 

(iii)          to
the extent explicitly provided in the applicable option agreement, by
(x) delivery of shares of Common Stock owned by the Participant valued at
fair market value (as determined by the Board or as determined pursuant to the
applicable option agreement), (y) delivery of a promissory note of the
Participant to the Company (and delivery to the Company by the Participant of a
check in an amount equal to the par value of the shares purchased), or
(z) payment of such other lawful consideration as the Board may determine.

 2
 

5.   Restricted Stock 

a.             Grants.
The Board may grant Awards entitling recipients to acquire shares of Common
Stock, subject to (i) delivery to the Company by the Participant of a
check in an amount at least equal to the par value of the shares purchased, and
(ii) the right of the Company to repurchase all or part of such shares at
their issue price or other stated or formula price from the Participant in the
event that conditions specified by the Board in the applicable Award are not
satisfied prior to the end of the applicable restriction period or periods
established by the Board for such Award (each, a “Restricted Stock Award”). 

b.             Terms
and Conditions. The Board shall determine the terms and conditions of any such
Restricted Stock Award. Any stock certificates issued in respect of a
Restricted Stock Award shall be registered in the name of the Participant and,
unless otherwise determined by the Board, deposited by the Participant,
together with a stock power endorsed in blank, with the Company (or its
designee). After the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or, if the Participant has died, to the
beneficiary designated by a Participant, in a manner determined by the Board,
to receive amounts due or exercise rights of the Participant in the event of
the Participant’s death (the “Designated Beneficiary”). In the absence of an
effective designation by a Participant, Designated Beneficiary shall mean the Participant’s
estate. 

6.   Other
Stock-Based Awards

The Board shall have the right to grant other Awards
based upon the Common Stock having such terms and conditions as the Board may
determine, including, without limitation, the grant of shares based upon certain
conditions, the grant of securities convertible into Common Stock and the grant
of stock appreciation rights, phantom stock awards or stock units.

7.   General Provisions
Applicable to Awards 

a.             Transferability
of Awards. Except as the Board may otherwise determine or provide in an Award,
Awards shall not be sold, assigned, transferred, pledged or otherwise
encumbered by the person to whom they are granted, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and,
during the life of the Participant, shall be exercisable only by the
Participant. References to a Participant, to the extent relevant in the
context, shall include references to authorized transferees. 

b.             Documentation.
Each Award under the Plan shall be evidenced by a written instrument in such
form as the Board shall determine or as executed by an officer of the Company
pursuant to authority delegated by the Board. Each Award may contain terms and
conditions in addition to those set forth in the Plan provided that such terms
and conditions do not contravene the provisions of the Plan. 

c.             Board
Discretion. The terms of each type of Award need not be identical, and the
Board need not treat Participants uniformly. 

d.             Termination
of Status. The Board shall determine the effect on an Award of the disability,
death, retirement, authorized leave of absence or other change in the
employment or other status of a Participant and the extent to which, and the
period during which, the Participant, or the Participant’s legal
representative, conservator, guardian or Designated Beneficiary, may exercise
rights under the Award. 

e.             Acquisition
of the Company 

(i)            Consequences
of an Acquisition. 

(A)          Disposition
of Awards. Unless otherwise expressly provided in the applicable Option or
Award, upon the occurrence of an Acquisition the Board or the board of
directors of the surviving or acquiring entity (as used in this
Section 7(e)(i)(A), also the “Board”), shall, as to outstanding Awards (on
the same basis or on different bases, as the Board shall specify): 

 3
 

(1)           make
appropriate provision for the continuation of such Awards by the Company or the
assumption of such Awards by the surviving or acquiring entity and by
substituting on an equitable basis for the shares then subject to such Awards
either (a) the consideration payable with respect to the outstanding
shares of Common Stock in connection with the Acquisition, (b) shares of
stock of the surviving or acquiring corporation or (c) such other securities
as the Board deems appropriate, the fair market value of which (as determined
by the Board in its sole discretion) shall not materially differ from the fair
market value of the shares of Common Stock subject to such Awards immediately
preceding the Acquisition; 

(2)           upon
written notice to the affected optionees, provide that all Options then
outstanding shall become fully exercisable and must be exercised within a
specified number of days of the date of such notice, at the end of which period
such Options shall terminate; or 

(3)           upon
written notice to the affected optionees, provide that all Options then
outstanding shall be terminated in exchange for a cash payment equal to the
excess of the fair market value (as determined by the Board in its sole
discretion) of the shares subject to such Options over the exercise price
thereof. 

(B)           Acquisition
Defined. “Acquisition” means: (x) a merger, consolidation or other
reorganization of the outstanding voting securities of the Company in which the
holders of the outstanding voting securities of the Company immediately prior
to the consummation of such event, shall, immediately following such event,
hold, as a group, less than a majority of the outstanding voting securities of
the surviving or successor entity; (y) an acquisition (other than by
merger or consolidation) of more than 50% of the outstanding voting securities
of the Company in one or a series of related transactions by any person or
group that beneficially owned less than 20% of the voting securities of the
Company prior to such acquisition; or (z) a sale, lease, transfer or other
disposition (other than by merger or consolidation) of all or substantially all
of the assets of the Company (other than in a spin-off or similar transaction
to the Company’s existing voting securityholders). 

(ii)           Assumption
of Options Upon Certain Events. In connection with a merger or consolidation of
an entity with the Company or the acquisition by the Company of property or
stock of an entity, the Board may grant Awards under the Plan in substitution
for stock and stock-based awards issued by such entity or an affiliate thereof.
The substitute Awards shall be granted on such terms and conditions as the
Board considers appropriate in the circumstances. 

(iii)          Pooling-of
Interests-Accounting. If the Company proposes to engage in an Acquisition
intended to be accounted for as a pooling-of-interests, and in the event that
the provisions of this Plan or of any Award hereunder, or any actions of the
Board taken in connection with such Acquisition, are determined by the
Company’s or the acquiring company’s independent public accountants to cause
such Acquisition to fail to be accounted for as a pooling-of-interests, then
such provisions or actions shall be amended or rescinded by the Board, without
the consent of any Participant, to be consistent with pooling-of-interests
accounting treatment for such Acquisition. 

(iv)          Parachute
Awards. If, in connection with an Acquisition, a tax under Section 4999 of
the Code would be imposed on the Participant (after taking into account the
exceptions set forth in Sections 280G(b)(4) and 280G(b)(5) of the Code), then
the number of Awards which shall become exercisable, realizable or vested as
provided in such section shall be reduced (or delayed), to the minimum extent
necessary, so that no such tax would be imposed on the Participant (the Awards
not becoming so accelerated, realizable or vested, the “Parachute Awards”). 

f.              Withholding.
Each Participant shall pay to the Company, or make provisions satisfactory to
the Company for payment of, any taxes required by law to be withheld in
connection with Awards to such Participant no later than the date of the event
creating the tax liability. The Board may allow Participants to satisfy such
tax obligations in whole or in part by transferring shares of Common Stock,
including shares retained from the Award creating the tax obligation, valued at
their fair market value (as determined by the Board or as determined pursuant
to the applicable option agreement). The Company may, to the extent permitted
by law, deduct any such tax obligations from any payment of any kind otherwise
due to a Participant. 

 4
 

g.             Amendment
of Awards. The Board may amend, modify or terminate any outstanding Award
including, but not limited to, substituting therefor another Award of the same
or a different type, changing the date of exercise or realization, and
converting an Incentive Stock Option to a Nonstatutory Stock Option, provided
that, except as otherwise provided in Section 7(e)(iii), the Participant’s
consent to such action shall be required unless the Board determines that the
action, taking into account any related action, would not materially and
adversely affect the Participant. 

h.             Conditions
on Delivery of Stock. The Company will not be obligated to deliver any shares
of Common Stock pursuant to the Plan or to remove restrictions from shares
previously delivered under the Plan until (i) all conditions of the Award
have been met or removed to the satisfaction of the Company, (ii) in the
opinion of the Company’s counsel, all other legal matters in connection with
the issuance and delivery of such shares have been satisfied, including any
applicable securities laws and any applicable stock exchange or stock market
rules and regulations, and (iii) the Participant has executed and
delivered to the Company such representations or agreements as the Company may
consider appropriate to satisfy the requirements of any applicable laws, rules
or regulations. 

i.              Acceleration.
The Board may at any time provide that any Options shall become immediately
exercisable in full or in part, that any Restricted Stock Awards shall be free
of some or all restrictions, or that any other stock-based Awards may become
exercisable in full or in part or free of some or all restrictions or
conditions, or otherwise realizable in full or in part, as the case may be,
despite the fact that the foregoing actions may (i) cause the application
of Sections 280G and 4999 of the Code if a change in control of the Company occurs,
or (ii) disqualify all or part of the Option as an Incentive Stock Option.
In the event of the acceleration of the exercisability of one or more
outstanding Options, the Board may provide, as a condition of full
exercisability or any or all such Options, that the Common Stock as to which
exercisability has been accelerated shall be restricted stock subject to
forfeiture and repurchase at the option of the Company at the cost thereof upon
termination of employment or other relationship, with the timing and other
terms of the vesting of such restricted stock being equivalent to the timing
and other terms of the superseded exercise schedule of the related Option. 

8.   Miscellaneous 

a.             Definitions.

(i)            “Company,”
for purposes of eligibility under the Plan, shall include any present or future
subsidiary corporations of Systinet Corporation, as defined in
Section 424(f) of the Code (a “Subsidiary”), and any present or future
parent corporation of Systinet Corporation, as defined in Section 424(e)
of the Code. For purposes of Awards other than Incentive Stock Options, the
term “Company” shall include any other business venture in which the Company
has a direct or indirect significant interest, as determined by the Board in
its sole discretion. 

(ii)           “Code”
means the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder. 

(iii)          “employee”
for purposes of eligibility under the Plan (but not for purposes of
Section 4(b)) shall include a person to whom an offer of employment has
been extended by the Company. 

b.             No
Right To Employment or Other Status. No person shall have any claim or right to
be granted an Award, and the grant of an Award shall not be construed as giving
a Participant the right to continued employment or any other relationship with
the Company. The Company expressly reserves the right at any time to dismiss or
otherwise terminate its relationship with a Participant free from any liability
or claim under the Plan. 

c.             No
Rights As Stockholder. Subject to the provisions of the applicable Award, no
Participant or Designated Beneficiary shall have any rights as a stockholder
with respect to any shares of Common Stock to be distributed with respect to an
Award until becoming the record holder thereof. 

d.             Effective
Date and Term of Plan. The Plan shall become effective on the date on which it
is adopted by the Board. No Awards shall be granted under the Plan after the
completion of ten years from the date on which the Plan was adopted by the
Board, but Awards previously granted may extend beyond that date. 

 5
 

e.             Amendment
of Plan. The Board may amend, suspend or terminate the Plan or any portion
thereof at any time. 

f.              Governing
Law. The provisions of the Plan and all Awards made hereunder shall be governed
by and interpreted in accordance with the laws of the Commonwealth of
Massachusetts, without regard to any applicable conflicts of law. 

 

 6Exhibit
10.24

COMPOSITE AFTER ASSIGNMENTS

ON NOVEMBER 14, 2006

 

CREDIT
AGREEMENT

dated as of

November 13, 2006

among

KENEXA
TECHNOLOGY, INC.

The
Several Lenders From Time to Time

Parties Hereto,

PNC BANK, NATIONAL
ASSOCIATION,

as
Administrative Agent and Issuing Bank

 

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Managing Agent

and

PNC CAPITAL MARKETS LLC, as Lead Arranger

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
  Page

  
	
  SECTION 1. DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
   

  	
  1

  
	
  1.2

  	
  Other Definitional Provisions

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2. LOANS AND TERMS OF COMMITMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
  Commitments

  	
   

  	
  25

  
	
  2.2

  	
  Notes

  	
   

  	
  26

  
	
  2.3

  	
  Procedure for Revolving Credit Loans and Term Loans

  	
   

  	
  27

  
	
  2.4

  	
  Letter of Credit Subfacility

  	
   

  	
  28

  
	
  2.5

  	
  Interest and Payment Dates

  	
   

  	
  34

  
	
  2.6

  	
  Default Interest

  	
   

  	
  34

  
	
  2.7

  	
  Conversion and Continuation Options; Limitations on
  Tranches

  	
   

  	
  34

  
	
  2.8

  	
  Fees.

  	
   

  	
  36

  
	
  2.9

  	
  Termination and Reduction of Revolving Credit
  Commitments

  	
   

  	
  36

  
	
  2.10

  	
  Optional and Mandatory Prepayments of Loans

  	
   

  	
  37

  
	
  2.11

  	
  Illegality

  	
   

  	
  39

  
	
  2.12

  	
  Requirements of Law

  	
   

  	
  39

  
	
  2.13

  	
  Taxes

  	
   

  	
  41

  
	
  2.14

  	
  Indemnity

  	
   

  	
  42

  
	
  2.15

  	
  Treatment of Loans and Payments

  	
   

  	
  42

  
	
  2.16

  	
  Payments

  	
   

  	
  42

  
	
  2.17

  	
  Loan Accounts

  	
   

  	
  43

  
	
  2.18

  	
  Assignment of Loans and/or Revolving Credit
  Commitments Under Certain Circumstances; Duty to Mitigate

  	
   

  	
  43

  
	
  2.19

  	
  Use of Proceeds

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3. REPRESENTATIONS AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
  Corporate Existence

  	
   

  	
  44

  
	
  3.2

  	
  Subsidiaries

  	
   

  	
  44

  
	
  3.3

  	
  Authority and Binding Effect

  	
   

  	
  44

  
	
  3.4

  	
  Approvals

  	
   

  	
  45

  
	
  3.5

  	
  Recording and Enforceability

  	
   

  	
  45

  
	
  3.6

  	
  Litigation

  	
   

  	
  45

  
	
  3.7

  	
  Financial Information

  	
   

  	
  45

  
	
  3.8

  	
  Taxes

  	
   

  	
  46

  
	
  3.9

  	
  Intellectual Property

  	
   

  	
  46

  
	
  3.10

  	
  Intentionally Omitted

  	
   

  	
  46

  
	
  3.11

  	
  Material Agreements

  	
   

  	
  46

  
	
  3.12

  	
  Compliance With Law

  	
   

  	
  46

  
	
  3.13

  	
  Title to Property

  	
   

  	
  47

  
	
  3.14

  	
  Security Interests

  	
   

  	
  47

  
	
  3.15

  	
  Federal Regulations

  	
   

  	
  47

  
	
  3.16

  	
  ERISA

  	
   

  	
  47

  

 i
 

 

 

	
  3.17

  	
  Fictitious Names

  	
   

  	
  48

  
	
  3.18

  	
  No Event of Default

  	
   

  	
  48

  
	
  3.19

  	
  Solvency

  	
   

  	
  48

  
	
  3.20

  	
  Investment Company Act

  	
   

  	
  48

  
	
  3.21

  	
  Environmental Matters

  	
   

  	
  48

  
	
  3.22

  	
  Labor Matters

  	
   

  	
  49

  
	
  3.23

  	
  Anti-Terrorism Laws

  	
   

  	
  49

  
	
  3.24

  	
  BrassRing Acquisition

  	
   

  	
  50

  
	
  3.25

  	
  No Burdensome Agreements

  	
   

  	
  50

  
	
  3.26

  	
  No Misrepresentations or Material Nondisclosures

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4. CONDITIONS PRECEDENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Conditions to Closing

  	
   

  	
  51

  
	
  4.2

  	
  Conditions to Each Loan or Letter of Credit

  	
   

  	
  54

  
	
  4.3

  	
  Closing

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5. AFFIRMATIVE COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
  Furnishing Financial Statements

  	
   

  	
  55

  
	
  5.2

  	
  Books and Records

  	
   

  	
  57

  
	
  5.3

  	
  Taxes

  	
   

  	
  57

  
	
  5.4

  	
  Corporate Existence and Rights; Compliance with Laws

  	
   

  	
  58

  
	
  5.5

  	
  Maintenance of Properties

  	
   

  	
  58

  
	
  5.6

  	
  Performance and Compliance with Material Agreements

  	
   

  	
  58

  
	
  5.7

  	
  Insurance

  	
   

  	
  58

  
	
  5.8

  	
  Inspection; Collateral Audit

  	
   

  	
  59

  
	
  5.9

  	
  Leases and Mortgages

  	
   

  	
  59

  
	
  5.10

  	
  Pay Indebtedness and Perform Other Covenants

  	
   

  	
  59

  
	
  5.11

  	
  Notices

  	
   

  	
  60

  
	
  5.12

  	
  Deposit Accounts

  	
   

  	
  60

  
	
  5.13

  	
  ERISA

  	
   

  	
  60

  
	
  5.14

  	
  Environmental Laws

  	
   

  	
  61

  
	
  5.15

  	
  Notice and Joinder of New Subsidiaries

  	
   

  	
  62

  
	
  5.16

  	
  Anti-Terrorism Laws

  	
   

  	
  62

  
	
  5.17

  	
  Hedge Agreements

  	
   

  	
  63

  
	
  5.18

  	
  Kenexa Care, Inc.

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6. NEGATIVE COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Financial Covenants

  	
   

  	
  63

  
	
  6.2

  	
  Limitation on Indebtedness

  	
   

  	
  64

  
	
  6.3

  	
  Limitation on Liens

  	
   

  	
  65

  
	
  6.4

  	
  Limitations on Fundamental Changes

  	
   

  	
  66

  
	
  6.5

  	
  Limitations on Sale of Assets

  	
   

  	
  67

  
	
  6.6

  	
  Limitations on Acquisitions and other Investments

  	
   

  	
  67

  
	
  6.7

  	
  Limitation on Distributions

  	
   

  	
  68

  
	
  6.8

  	
  Transactions with Affiliates

  	
   

  	
  68

  
	
  6.9

  	
  Sale and Leaseback

  	
   

  	
  68

  
	
  6.10

  	
  Continuation of or Change in Business

  	
   

  	
  69

  

 ii
 

 

 

	
  6.11

  	
  Limitation on Negative Pledge

  	
   

  	
  68

  
	
  6.12

  	
  Limitation on Optional Prepayment of Indebtedness

  	
   

  	
  69

  
	
  6.13

  	
  Use of Proceeds

  	
   

  	
  69

  
	
  6.14

  	
  Fiscal Year

  	
   

  	
  69

  
	
  6.15

  	
  Clauses Restricting Subsidiary Distributions

  	
   

  	
  69

  
	
  6.16

  	
  Limitation on Activities of the Parent

  	
   

  	
  69

  
	
  6.17

  	
  No Misrepresentations or Material Nondisclosure

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7. EVENTS OF DEFAULT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Events of Default

  	
   

  	
  70

  
	
  7.2

  	
  Remedies

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8. THE ADMINISTRATIVE AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
  Appointment

  	
   

  	
  73

  
	
  8.2

  	
  Delegation of Duties

  	
   

  	
  73

  
	
  8.3

  	
  Exculpatory Provisions

  	
   

  	
  73

  
	
  8.4

  	
  Reliance by Administrative Agent

  	
   

  	
  74

  
	
  8.5

  	
  Notice of Default

  	
   

  	
  74

  
	
  8.6

  	
  Non-Reliance on Administrative Agent and Other
  Lenders

  	
   

  	
  74

  
	
  8.7

  	
  Indemnification

  	
   

  	
  75

  
	
  8.8

  	
  Agents in Their Individual Capacity

  	
   

  	
  75

  
	
  8.9

  	
  Release of Liens

  	
   

  	
  76

  
	
  8.10

  	
  Successor Administrative Agent

  	
   

  	
  76

  
	
  8.11

  	
  USA Patriot Act

  	
   

  	
  76

  
	
  8.12

  	
  Beneficiaries

  	
   

  	
  76

  
	
  8.13

  	
  Managing Agent and Lead Arranger

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9. MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
  Amendments and Waivers

  	
   

  	
  77

  
	
  9.2

  	
  Notices

  	
   

  	
  78

  
	
  9.3

  	
  No Waiver; Cumulative Remedies

  	
   

  	
  79

  
	
  9.4

  	
  Survival of Representations and Warranties

  	
   

  	
  79

  
	
  9.5

  	
  Payment of Expenses and Taxes

  	
   

  	
  80

  
	
  9.6

  	
  Successors and Assigns

  	
   

  	
  80

  
	
  9.7

  	
  Adjustments; Set-off

  	
   

  	
  84

  
	
  9.8

  	
  Counterparts

  	
   

  	
  84

  
	
  9.9

  	
  Severability

  	
   

  	
  85

  
	
  9.10

  	
  Integration

  	
   

  	
  85

  
	
  9.11

  	
  GOVERNING LAW

  	
   

  	
  85

  
	
  9.12

  	
  Confidentiality

  	
   

  	
  85

  
	
  9.13

  	
  Submission To Jurisdiction; Waivers

  	
   

  	
  85

  
	
  9.14

  	
  Acknowledgments

  	
   

  	
  86

  
	
  9.15

  	
  USA PATRIOT ACT

  	
   

  	
  86

  
	
  9.16

  	
  WAIVERS OF JURY TRIAL

  	
   

  	
  87

  

 iii
 

 

SCHEDULES

	
  SCHEDULE I

  	
  Lender and Commitment Information

  
	
  SCHEDULE II

  	
  BrassRing EBITDA and Adjustments

  
	
  SCHEDULE III

  	
  Existing Letters of Credit

  
	
  SCHEDULE IV

  	
  Existing Permitted Investments

  
	
  SCHEDULE 2.1(b)

  	
  Term Loan Amortization Schedule

  
	
  SCHEDULE 3.2

  	
  Subsidiaries

  
	
  SCHEDULE 3.6

  	
  Litigation

  
	
  SCHEDULE 3.11

  	
  Material Agreements

  
	
  SCHEDULE 3.14

  	
  Filing Locations

  
	
  SCHEDULE 3.16

  	
  ERISA Matters

  
	
  SCHEDULE 3.17

  	
  Fictitious Names

  
	
  SCHEDULE 3.22

  	
  Labor Matters

  
	
  SCHEDULE 4.1(o)

  	
  Agreed Upon Add-Backs to Targets’ Modified EBITDA

  
	
  SCHEDULE 6.2

  	
  Existing Indebtedness

  
	
  SCHEDULE 6.3

  	
  Existing Liens

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  
	
  EXHIBIT A-1

  	
  Form of Revolving Credit Note

  
	
  EXHIBIT A-2

  	
  Form of Term Note

  
	
  EXHIBIT B

  	
  Form of Notice of Borrowing

  
	
  EXHIBIT C

  	
  Form of Guaranty

  
	
  EXHIBIT D

  	
  Form of Assignment and Assumption

  
	
  EXHIBIT E

  	
  Form of Pledge Agreement

  
	
  EXHIBIT F

  	
  Form of Security Agreement

  

 

 iv

CREDIT AGREEMENT

THIS CREDIT AGREEMENT, dated as of
November 13, 2006, is among KENEXA TECHNOLOGY, INC., a Pennsylvania corporation (the “Borrower”),
the several banks and other financial institutions from time to time parties
hereto (individually, a “Lender”; collectively, the “Lenders”)
and PNC BANK, NATIONAL ASSOCIATION, as
Administrative Agent (in such capacity, the “Administrative Agent”).

W I T N E S S E T H:

In consideration of the premises and other valuable consideration, the
receipt and adequacy of which are hereby acknowledged, and with the intent to
be legally bound hereby, the parties hereto agree as follows:

SECTION
1.  DEFINITIONS

1.1           Defined Terms.  As used in this Agreement, the following
terms shall have the following meanings:

“Accumulated Funding Deficiency”:  any accumulated funding deficiency as defined
in Section 302(a) of ERISA.

“Administrative Agent”:  as defined in the Preamble hereto, and its
successors in such capacity appointed pursuant to Section 8.10.

“Affiliate”: 
as to any Person, any other Person which, directly or indirectly,
through one or more intermediaries, controls, or is controlled by, or is under
common control with, such Person and any member, partner, director, officer or
employee of any such Person.  For
purposes of this definition, “control” shall mean the power, directly or
indirectly, either to (a) vote 10% or more of the Capital Stock of such
Person, (b) vote 10% or more of the securities having ordinary voting power for
the election of directors of such Person or (c) direct or in effect cause the
direction of the management and policies of such Person whether by contract or
otherwise.

“Agents”: 
the collective reference to the Administrative Agent, the Lead Arranger
and the Managing Agent.

“Agreement”: 
this Credit Agreement, as amended, supplemented or otherwise modified
from time to time.

“Anti-Terrorism Laws”:  any laws relating to terrorism or money
laundering, including Executive Order No. 13224 and the USA Patriot Act.

“Applicable Commitment Fee Percentage”:  on any date, the percentage per annum set
forth below opposite the Total Net Leverage Ratio set forth below as shown on
the last Compliance Certificate delivered by the Borrower to the Administrative
Agent pursuant to subsection 5.1(c) prior to such date:

 

 

	
  Level

  	
   

  	
  Total Net Leverage Ratio

  	
   

  	
  Applicable Commitment

  Fee Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  Less than or equal to 1.50 to 1.0

  	
   

  	
  0.175

  	
  %

  
	
  II

  	
   

  	
  Greater than 1.50 to 1.0, but less than or equal to
  2.0 to 1.0

  	
   

  	
  0.20

  	
  %

  
	
  III

  	
   

  	
  Greater than 2.0 to 1.0, but less than or equal to
  2.5 to 1.0

  	
   

  	
  0.25

  	
  %

  
	
  IV

  	
   

  	
  Greater than 2.5 to 1.0, but less than or equal to
  3.0 to 1.0

  	
   

  	
  0.30

  	
  %

  
	
  V

  	
   

  	
  Greater than 3.0 to 1.0

  	
   

  	
  0.375

  	
  %

  
							

 

provided, however, that (a) adjustments,
if any, to the Applicable Commitment Fee Percentage resulting from a change in
the Total Net Leverage Ratio shall be effective three (3) Business Days after
the Administrative Agent has received a Compliance Certificate, (b) in the
event that no Compliance Certificate has been delivered for a fiscal quarter on
or prior to the last date on which it can be delivered without violation of
subsection 5.1(c), the Applicable Commitment Fee Percentage from such date
until such Compliance Certificate is actually delivered shall be that
applicable under Level V and (c) anything in this definition to the
contrary notwithstanding, until receipt by the Administrative Agent of the
annual audited financial statements required by subsection 5.1(a) for the
fiscal year ending December 31, 2006 together with the accompanying Compliance
Certificate, the Applicable Commitment Fee Percentage shall be that applicable
under Level II to Level IV as determined by the Administrative Agent in
its sole discretion from time to time during such period.  

“Applicable Margin”:  (a)  on
any date, for any Revolving Credit Loan, the percentage per annum set forth
below in the column entitled “Applicable Margin - Base Rate Loans” or “Applicable
Margin - Eurodollar Loans,” as appropriate, opposite the Total Net Leverage
Ratio set forth below as shown on the last Compliance Certificate delivered by
the Borrower to the Administrative Agent pursuant to subsection 5.1(c) prior to
such date:

	
  Level

  	
   

  	
  Total Net Leverage Ratio

  	
   

  	
  Applicable Margin -

  Base Rate Loans

  	
   

  	
  Applicable Margin -

  Eurodollar Loans

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  Less than or equal to 1.50 to 1.0

  	
   

  	
  0

  	
  %

  	
  1.25

  	
  %

  
	
  II

  	
   

  	
  Greater than 1.50 to 1.0, but less than or equal to
  2.0 to 1.0

  	
   

  	
  0.25

  	
  %

  	
  1.50

  	
  %

  
	
  III

  	
   

  	
  Greater than 2.0 to 1.0, but less than or equal
  to 2.5 to 1.0

  	
   

  	
  0.50

  	
  %

  	
  1.75

  	
  %

  
	
  IV

  	
   

  	
  Greater than 2.5 to 1.0, but less than or equal
  to 3.0 to 1.0

  	
   

  	
  0.75

  	
  %

  	
  2.00

  	
  %

  
	
  V

  	
   

  	
  Greater than 3.0 to 1.0

  	
   

  	
  1.25

  	
  %

  	
  2.50

  	
  %

  

 2
 

 

; provided, however, that (a) adjustments, if any, to the
Applicable Margin for Revolving Credit Loans resulting from a change in the
Total Net Leverage Ratio shall be effective three (3) Business Days after the
Administrative Agent has received a Compliance Certificate, (b) in the event
that no Compliance Certificate has been delivered for a fiscal quarter on or
prior to the last date on which it can be delivered without violation of
subsection 5.1(c), the Applicable Margin for Revolving Credit Loans from such
date until such Compliance Certificate is actually delivered shall be that
applicable under Level V and (c) anything in this definition to the
contrary notwithstanding, until receipt by the Administrative Agent of the
annual audited financial statements required by subsection 5.1(a) for the
fiscal year ending December 31, 2006 together with the accompanying
Compliance Certificate, the Applicable Margin for Revolving Credit Loans shall
be that applicable under Level II to Level IV as determined by the
Administrative Agent in its sole discretion from time to time during such
period.

(b)           on
any date, for any Term Loan, the percentage per annum set forth below in the column
entitled “Applicable Margin - Base Rate Loans” or “Applicable Margin -
Eurodollar Loans”, as appropriate, opposite the Total Net Leverage Ratio set
forth below as shown on the last Compliance Certificate delivered by the
Borrower to the Administrative Agent pursuant to subsection 5.1(c) prior to
such date:

	
  Level

  	
   

  	
  Total Net Leverage Ratio

  	
   

  	
  Applicable Margin -

  Base Rate Loans

  	
   

  	
  Applicable

  Margin -

  Eurodollar Loans

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  Less than or equal to 1.50 to 1.0

  	
   

  	
  0.50

  	
  %

  	
  1.75

  	
  %

  
	
  II

  	
   

  	
  Greater than 1.50 to 1.0, but less than or equal to
  2.0 to 1.0

  	
   

  	
  0.75

  	
  %

  	
  2.00

  	
  %

  
	
  III

  	
   

  	
  Greater than 2.0 to 1.0, but less than or equal
  to 2.5 to 1.0

  	
   

  	
  1.00

  	
  %

  	
  2.25

  	
  %

  
	
  IV

  	
   

  	
  Greater than 2.5 to 1.0, but less than or equal
  to 3.0 to 1.0

  	
   

  	
  1.25

  	
  %

  	
  2.50

  	
  %

  
	
  V

  	
   

  	
  Greater than 3.0 to 1.0

  	
   

  	
  1.75

  	
  %

  	
  3.00

  	
  %

  

; provided, however, that (a)
adjustments, if any, to the Applicable Margin for Term Loans resulting from a
change in the Total Net Leverage Ratio shall be effective three (3) Business
Days after the Administrative Agent has received a Compliance Certificate, (b)
in the event that

 3
 

 

no Compliance Certificate has been delivered for a
fiscal quarter on or prior to the last date on which it can be delivered
without violation of subsection 5.1(c), the Applicable Margin for Term Loans
from such date until such Compliance Certificate is actually delivered shall be
that applicable under Level V and (c) anything in this definition to the
contrary notwithstanding, until receipt by the Administrative Agent of the
annual audited financial statements required by subsection 5.1(a) for the
fiscal year ending December 31, 2006 together with the accompanying
Compliance Certificate, the Applicable Margin for Term Loans shall be that
applicable under Level II to Level IV as determined by the Administrative
Agent in its sole discretion from time to time during such period.  

“Application”: 
in respect of each Letter of Credit issued by the Issuing Bank, an
application, in such form as the Issuing Bank may specify from time to time,
requesting issuance of such Letter of Credit, as it may be amended,
supplemented or modified from time to time.

“Asset Sale”: 
as defined in subsection 2.10(c).

“Assignment and Assumption”:  an assignment and assumption entered into by
a Lender and a Purchasing Lender in accordance with and subject to the terms
and conditions of Section 9.6, substantially in the form of Exhibit D
attached hereto, or such other form as shall be approved by the Administrative
Agent, as it may be amended, supplemented or modified from time to time.

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

“Base Rate Borrowing”:  a Borrowing comprised of Base Rate Loans.

“Base Rate Loans”:  any Loan bearing interest at a rate determined
by reference to the Base Rate.

“Borrower”: 
as defined in the Preamble hereto.

“Borrowing”: 
each group of Loans of a single Type made by the Lenders under one
Facility on a single date and, in the case of Eurodollar Loans, as to which a
single Interest Period is in effect.

“Borrowing Availability”:  at any particular time, an amount equal to
the excess, if any, of (a) the aggregate Revolving Credit Commitments of the
Revolving Credit Lenders at such time over (b) the aggregate Revolving Credit
Exposure of the Revolving Credit Lenders at such time.

 4
 

 

“Borrowing Date”:  any Business Day on which a Loan is to be
made at the request of the Borrower under this Agreement.

“BrassRing Acquisition”:  (a) the purchase of all of the membership
interests of BrassRing LLC owned by Gannet Satellite Information Network, Inc.,
BRLLC Holdings, Inc. and Tribune National Marketing Company (which constitutes
approximately 88.6% of the membership interests in BrassRing LLC) and (b) the
merger of Birmingham Acquisition Corp. (a wholly-owned Subsidiary of the
Borrower) with and into BrassRing Inc., (the owner of the remaining 11.4% of
the membership interests of BrassRing LLC), in each case pursuant to the terms
of the BrassRing Acquisition Documents.

“BrassRing Acquisition Documents”:  the Equity Purchase Agreement and Plan of
Merger, dated as of October 5, 2006 by and among the Parent, the Borrower,
Birmingham Acquisition Corp., BrassRing LLC, BrassRing Inc., Gannet Satellite
Information Network, Inc., BRLLC Holdings, Inc., Tribune National Marketing
Company, The Accel Parties and Gerald M. Rosberg, as representative for the
equityholders, and the BrassRing
Escrow Agreement.

“BrassRing Escrow Agreement”:  the Escrow Agreement, dated as of the date
hereof by and among PNC Bank, National Association, as escrow agent, the
Borrower and Gerald M. Rosberg, as representative for the equityholders,
entered into in connection with the BrassRing Acquisition.

“BrassRing Escrow Event”:  the receipt by the Parent or any of its
Subsidiaries, in the aggregate, in excess of $1,000,000 from and after the
Closing Date under the BrassRing Escrow Agreement.

“Budget”: as defined in subsection 5.1(i).

“Business Day”: 
a day other than a Saturday, Sunday or other day on which commercial
banks in Pittsburgh or Philadelphia, Pennsylvania, are authorized or required
by law or other governmental action to close and if the applicable Business Day
relates to any Eurodollar Loan, such day must also be a day on which dealings
are carried on in the London interbank market.

“Capital Expenditures”:  any expenditure of the Parent or any
Subsidiary of the Parent which would be classified as a capital expenditure in
accordance with GAAP.

“Capital Lease”:  at any time, a lease with respect to which
the lessee is required to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP.

“Capital Lease Obligations”:  at any time, the amount of the obligations
under Capital Leases which would be shown at such time as a liability on a consolidated
balance sheet of the Parent and its consolidated Subsidiaries prepared in
accordance with GAAP.

“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all partnership interests in a partnership (general or limited), any
and all equivalent ownership interests in a Person (other

 5
 

 

than a corporation or partnership), including
interests in a limited liability company, and any and all warrants or options
to purchase any of the foregoing.

“Cash Equivalents”:  (a) securities with maturities of 90
days or less from the date of acquisition issued or fully guaranteed or insured
by the United States or any agency thereof, (b) certificates of deposit
with maturities of 90 days or less from the date of acquisition and overnight
bank deposits of any commercial bank having capital, surplus and undivided
profits aggregating at least $500,000,000, (c) repurchase obligations of
any commercial bank satisfying the requirements of clause (b) of this
definition, (d) commercial paper of a domestic issuer rated at least A-2
or better by S&P or P-2 or better by Moody’s and in either case maturing
within 90 days after the date of acquisition, (e) securities with
maturities of 90 days or less from the date of acquisition issued or fully
guaranteed by any state, commonwealth or territory of the United States or by
any political subdivision or taxing authority of any such state, commonwealth
or territory, and such securities of such state commonwealth, territory,
political subdivision or taxing authority, as the case may be, are rated at
least A by S&P or A by Moody’s, (f) securities with maturities of 90
days or less from the date of acquisition backed by standby letters of credit
issued by any commercial bank satisfying the requirements of clause (b) of this
definition, or (g) shares of “money market funds” within the meaning of
Rule 2a-7 of the Investment Company Act of 1940, as amended.

“Change of Control”:  any transaction or occurrence or series of
transactions or occurrences which results at any time in:

(a)           any Person or group of Persons
(within the meaning of Sections 13(d) or 14(a) of the Securities Exchange Act
of 1934, as amended) shall have acquired, after the Closing Date, beneficial
ownership of (within the meaning of Rule 13d-3 promulgated by the SEC under
said Act) 30.00% or more of the voting Capital Stock of the Parent;

(b)           within a period of twelve (12)
consecutive calendar months, individuals who were directors of the Parent on
the first day of such period (together with any new directors whose election by
the board of directors of the Parent or whose nomination for election by the
shareholders of the Parent was approved by a vote of a majority of the
directors then still in office who were either directors as of the first day of
such period or whose election or nomination for election was previously so
approved) shall cease to constitute a majority of the board of directors of the
Parent; or

(c)           the
Parent ceasing to own, whether directly or indirectly, beneficially and of
record less than one hundred percent (100%) of each class of Capital Stock of
the Borrower.

“Closing” and “Closing Date”:  as defined in Section 4.3.

“Code”: 
the Internal Revenue Code of 1986, as amended from time to time.

“Collateral”: 
all property of the Parent, Borrower and the other Loan Parties which is
at the time subject to the Lien of any of the Security Documents in favor of
the Administrative Agent for the benefit of the holders of the Obligations.

 6
 

 

“Commitment Fees”:  as defined in Section 2.8.

“Commonly Controlled Entity”:  an entity, whether or not incorporated, which
is under common control with the Parent within the meaning of Section 4001 of
ERISA or is part of a group which includes the Parent and which is treated as a
single employer under Section 414(b), (c), (m) or (o) of the Code.

“Compliance Certificate”:  as defined in subsection 5.1(c).

“Consideration”:  as defined in the definition of Permitted
Acquisitions.

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

“Default”: 
any of the events specified in Section 7.1, whether or not any
requirement for the giving of notice, the lapse of time, or both, or any other
condition precedent therein set forth, has been satisfied.

“Default Rate”: 
as defined in Section 2.6.

“Distribution”: 
in respect of any Capital Stock of any Person (a) dividends or other
distributions on such Capital Stock (except distributions in other Capital
Stock of such Person) and (b) the redemption or acquisition of such Capital
Stock or of warrants, rights or other options to purchase such Capital Stock
(except when solely in exchange for Capital Stock of such Person), including,
without limitation, any payments on or in respect of any redeemable preferred
stock of such Person.

“Dollars” and “$”:  dollars in lawful currency of the United
States of America.

“Domestic Subsidiary”:  any Subsidiary other than a Foreign
Subsidiary.

“EBITDA”: 
for any period, net income (excluding (i) non-cash equity compensation
expenses and (ii) interest income, in each case for such period), plus, to
the extent deducted from such net income, the sum of (a) gross interest
expense, (b) income taxes, and (c) depreciation and amortization, all
as determined for the Parent and its Subsidiaries on a consolidated basis in
accordance with GAAP and without duplication; provided that, if at any
time during such period the Parent or any of its Subsidiaries shall have sold
or otherwise divested any material assets or stock in any Subsidiary, any book
gain or loss resulting from such sale or other divestiture, together with the
net income or loss of such Subsidiary or attributable to such assets shall also
be excluded from net income.  As used in
the definitions of Modified EBITDA and Permitted Acquisition, EBITDA shall also
be determined for any Person who has (or whose assets have) been acquired by a
Loan Party to the extent provided in such definition.

“Employee Pension Plan”:  any pension plan which (a) is maintained by
the Parent or any Affiliate and (b) is subject to Part 3 of Title I
of ERISA.

 7
 

 

“Environmental Laws”:  any and all Federal, state, local, municipal
or foreign laws, rules, orders, regulations, statutes, ordinances, codes,
decrees or binding requirements of any Governmental Authority, or binding
Requirement of Law regulating, relating to or imposing liability or standards
of conduct concerning protection of the environment, as now or may at any time
hereafter be in effect.

“ERISA”: 
the Employee Retirement Income Security Act of 1974, as amended, and any
regulations issued thereunder by the Department of Labor or PBGC.

“Eurocurrency Reserve Requirements”:  for any day as applied to a Eurodollar Loan,
the aggregate (without duplication) of the rates (expressed as a decimal
fraction) of reserve requirements in effect on such day (including, without limitation,
basic, supplemental, marginal and emergency reserves under any regulations of
the Board of Governors of the Federal Reserve System or other Governmental
Authority having jurisdiction with respect thereto) dealing with reserve
requirements prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of such Board) maintained by a member bank of
such System.

“Eurodollar Base Rate”:  with respect to any Eurodollar Loan for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to
the next 1/100th of 1%) equal to the rate determined by the Administrative
Agent in accordance with its usual procedures (which determination shall be
conclusive absent manifest error) to be the average of the London interbank
offered rate of interest per annum for Dollars quoted by the British Bankers’
Association set forth on Moneyline Telerate (or appropriate successor, or if
the British Bankers’ Association or its successor ceases to provide such
quotes, a comparable replacement determined by the Administrative Agent),
display page 3750 (or such other display page on the Moneyline Telerate System
as may replace such page 3750) at approximately 11:00 a.m., London time, two
(2) Business Days prior to the first day of such Interest Period for an amount
approximately equal in principal amount to such Eurodollar Loan and having a
borrowing date and a maturity comparable to the Interest Period for such
Eurodollar Loan.

“Eurodollar Borrowing”:  a Borrowing comprised of Eurodollar Loans.

“Eurodollar Loan”:  any Loan bearing interest at a rate
determined by reference to the Eurodollar Rate in accordance with the
provisions of Section 2.

“Eurodollar Rate”:  with respect to each Interest Period
pertaining to a Eurodollar Loan, a rate per annum determined in accordance with
the following formula (rounded upward to the nearest 1/100th of 1%):

          Eurodollar
Base Rate          

1.00      - Eurocurrency
Reserve Requirements

Such Eurodollar Rate
shall be adjusted with respect to any outstanding Eurodollar Loan on the
effective date of any change in the Eurocurrency Reserve Requirements as of
such effective date.  The Administrative
Agent shall give prompt notice to the Borrower of the Eurodollar Rate as
determined or adjusted in accordance herewith, which determination shall be
conclusive absent error in calculation.

 8
 

 

“Event of Default”:  any of the events specified in
Section 7, provided that any requirement for the giving of notice,
the lapse of time, or both, or any other condition, has been satisfied.

“Excess Cash Flow”:  for any fiscal year, the amount by which
EBITDA exceeds Fixed Charges, in each case determined for the Parent and its
Subsidiaries on a consolidated basis in accordance with GAAP for such fiscal
year.

“Excluded Taxes”:  with respect to the Administrative Agent, any
Lender, any Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of Borrower hereunder (a) income or franchise
taxes imposed on (or measured by) its net income by the United States of
America, or 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, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which Borrower is located and (c) in the
case of a Foreign Lender (other than an assignee pursuant to a request by
Borrower under Section 2.18), 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) or is attributable to
such Foreign Lender’s failure to comply with subsection 2.13(b), 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 Borrower with respect to such withholding tax pursuant
to Section 2.13.

“Executive Order No. 13224”:  Executive Order No. 13224 on Terrorist
Financing, effective September 24, 2001, as the same has been, or shall
hereafter be, renewed, extended, amended or replaced.

“Existing Credit Agreement”:  that certain Credit Agreement dated as of
June 15, 2003 among the Borrower, PNC Bank, National Association, as
agent, and the banks and financial institutions party thereto, as heretofore
amended, modified or supplemented.

“Existing Letters of Credit”:  those letters of credit issued by PNC under
the Existing Credit Agreement which are outstanding on the Closing Date.  A list of the Existing Letters of Credit is
set forth on Schedule III.

“Facilities”: 
the facilities represented by the Term Loans and the Revolving Credit
Loans.  The two Facilities are the “Revolving
Credit Facility” and the “Term Loan Facility”.

“Fee Letter”: 
the letter dated as of September 29, 2006, signed by the Borrower, PNC
and the Lead Arranger relating to fees.

“Federal Funds Effective Rate”:  for any day, the weighted average 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 which is a Business Day, the average of
the quotations for the day of such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by it.

 9
 

 

“Federal Funds Open Rate”:  for any day, the rate per annum determined by
the Administrative Agent in accordance with its usual procedures (which
determination shall be conclusive absent manifest error) to be the “open” rate
for federal funds transactions as of the opening of business for federal funds
transactions among members of the Federal Reserve System arranged by federal
funds brokers on such day, as quoted by Garvin Guybutler, any successor entity
thereto, or any other broker selected by the Administrative Agent, as set forth
on the applicable Telerate display page; provided, however, that
if such day is not a Business Day, the Federal Funds Open Rate for such day
shall be the Open Rate on the immediately preceding Business Day, or if no such
rate shall be quoted by a federal funds broker at such time, such other rate as
determined by the Administrative Agent in accordance with its usual procedures.

“Fixed Charge Coverage Ratio”:  as of the last day of any fiscal quarter, the
ratio of (a) EBITDA to (b) Fixed Charges, in each case determined for the
Parent and its Subsidiaries on a consolidated basis for the period of four (4)
consecutive fiscal quarters ending on such date.

“Fixed Charges”:  for any period, the sum of (a) cash income
taxes, (b) gross cash interest expense, (c) cash Distributions, (d) scheduled
principal payments of all Indebtedness (excluding paydowns of Revolving Credit
Loans, but including seller notes) and (e) Capital Expenditures, all as
determined for the Parent and its Subsidiaries, on a consolidated basis in
accordance with GAAP and without duplication.

“Foreign Benefit Event”:  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 of 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 Plan, (d)
the incurrence of any liability in excess of $250,000 in the aggregate by the
Parent and its Subsidiaries under applicable law and on account of the complete
or partial termination of such Foreign Pension Plan or the complete or partial
withdrawal of any participating employer therein, or (e) the occurrence of any
transaction that is prohibited under any applicable law and that would
reasonably be expected to result in the incurrence of any liability by the
Parent, the Borrower and their Subsidiaries or the imposition on the Parent,
the Borrower and their Subsidiaries of any fine, excise tax or penalty
resulting from any noncompliance with any applicable law, in each in excess of
in the aggregate of $250,000.

“Foreign Lender”:  any Lender that is not organized under the
laws of the United States of America, any State thereof or the District of
Columbia.

“Foreign Pension Plan”:  any benefit plan maintained by a Foreign
Subsidiary 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”:  any Subsidiary not organized under the laws
of the United States of America, any State thereof or the District of Columbia.

 10
 

 

“GAAP”: 
at any time with respect to the determination of the character or amount
of any asset or liability or item of income or expense, or any consolidation or
other accounting computation, generally accepted accounting principles as in
effect in the United States on the date of, or at the end of the period covered
by, the financial statements from which such asset, liability, item of income,
or item of expense, is derived, or, in the case of any such computation, as in
effect on the date when such computation is required to be determined,
consistently applied.

“Governmental Acts”:  as defined in subsection 2.4(j).

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

“Guarantor”: 
the Parent and each Subsidiary of the Borrower now or hereafter
executing and delivering a Guaranty.  The
initial Guarantors shall be the Parent, Kenexa Government Solutions, Inc.,
Devon Royce, Inc., Nextworx, Inc., Kenexa Recruiter, Inc., Kenexa BrassRing
Inc. (formerly known as BrassRing, Inc.) and BrassRing LLC.

“Guaranty”: 
a Guaranty and Suretyship Agreement delivered to the Administrative
Agent by a Guarantor substantially in the form of Exhibit C hereto,
as the same may be amended, supplemented or otherwise modified from time to
time.

“Guaranty Obligation”:  as to any Person, any guarantee of payment or
performance by such Person of any Indebtedness or other obligation of any other
Person, or any agreement to provide financial assurance with respect to the
financial condition, or the payment of the obligations of, such other Person
(including, without limitation, purchase or repurchase agreements,
reimbursement agreements with respect to letters of credit or acceptances,
indemnity arrangements, grants of security interests to support the obligations
of another Person, keepwell agreements and take-or-pay or through-put
arrangements) which has the effect of assuring or holding harmless any third
Person against loss with respect to one or more obligations of such third
Person; provided, however, the term Guaranty Obligation shall not
include endorsements of instruments for deposit or collection in the ordinary
course of business.  The amount of any
Guaranty Obligation of any Person shall be deemed to be the lower of (a) an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guaranty Obligation is made and (b) the maximum amount
for which such contingently liable Person may be liable pursuant to the terms
of the instrument embodying such Guaranty Obligation, unless the maximum amount
is not stated or determinable, in which case the amount of such Guaranty
Obligation shall be such contingently liable Person’s maximum reasonably
anticipated liability in respect thereof as determined by such Person in good
faith and approved by the Administrative Agent. 
Guaranty Obligations of any Person shall include the amount of any future
“earn-out” or similar payments to be made to any other Person in connection
with a Permitted Acquisition to the extent included in accordance with GAAP as
a liability on the balance sheet of such Person.

“Hedge Agreement”:  any (a) interest rate swap agreement,
interest rate cap agreement, interest rate floor agreement, interest rate
collar agreement, interest rate option or any

 11
 

 

other agreement regarding the hedging of interest rate
risk exposure executed in connection with hedging the interest rate exposure of
any Person and any confirming letter executed pursuant to such agreement and
(b) a foreign exchange contract, currency swap agreement, futures contract,
option contract, synthetic cap or any other agreement regarding the hedging of
fluctuations of currency values and any confirming letter executed pursuant to
such agreement, all as amended, restated, supplemented or otherwise modified
from time to time.

“Indebtedness”:  of any Person at any date, without
duplication:

(a)           all indebtedness of
such Person for borrowed money or for the deferred purchase price of property
or services (other than trade liabilities incurred in the ordinary course of
business not more than 60 days overdue (or being contested in good faith) and
payable in accordance with customary practices), including seller’s notes and
to the extent included as a liability on the balance sheet of such Person in
accordance with GAAP, earn-outs and similar obligations,

(b)           any other indebtedness
which is evidenced by a note, bond, debenture or similar instrument,

(c)           all Capital Lease
Obligations of such Person,

(d)           all reimbursement and
other obligations of such Person in respect of letters of credit, bankers’
acceptances and similar obligations created for the account of such Person, in
each case whether or not matured,

(e)           all liabilities secured
by any Lien on any property owned by such Person even though such Person has
not assumed or otherwise become liable for the payment thereof,

(f)            all liabilities with
respect to redeemable preferred stock obligations arising prior to the later of
the Revolving Credit Termination Date and the Term Loan Maturity Date,

(g)           net liabilities of such
Person under any Hedge Agreements, foreign currency exchange agreements,
netting agreements and other hedging agreements or arrangements (calculated on
a basis satisfactory to the Administrative Agent and in accordance with
accepted practice),

(h)           withdrawal liabilities
of such Person or any Commonly Controlled Entity under a Plan or withdrawal
liabilities of such Person under a Foreign Pension Plan, and

(i)            all Guaranty
Obligations of such Person with respect to liabilities of a type described in
any of clauses (a) through (h) of this definition.

The Indebtedness of any Person shall include any Indebtedness of any partnership
in which such Person is the general partner.

 12
 

 

“Insolvency”: 
with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

“Insolvent”: 
pertaining to a condition of Insolvency.

“Intellectual Property”:  has the meaning ascribed thereto in Section
3.9.

“Interest Payment Date”:  (a) as to any Base Rate Loan, each
January 1, April 1, July 1 and October 1, (b) as to any
Eurodollar Loan having an Interest Period of three months or less, the last day
of such Interest Period, (c) as to any Eurodollar Loan having an Interest
Period longer than three months, each day which is three months, or a whole
multiple thereof, after the first day of such Interest Period and the last day
of such Interest Period, (d) as to any Revolving Credit Loan, in addition to
the foregoing, the Revolving Credit Termination Date and (e) as to any Term
Loan, in addition to the foregoing, the Term Loan Maturity Date.

“Interest Period”:  with respect to any Eurodollar Loan:

(a)           initially
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurodollar Loan and ending one, two, three, six or, if
available to all of the Lenders, nine or twelve months thereafter, as selected
by the Borrower in its notice of borrowing or notice of conversion, given with
respect thereto; and

(b)           thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurodollar Loan and ending one, two, three, six or, if
available to all of the Lenders, nine or twelve months thereafter, as selected
by the Borrower by irrevocable notice to the Administrative Agent not less than
three Business Days prior to the last day of the then current Interest Period
with respect thereto;

provided
that, the foregoing provisions relating to Interest Periods are subject
to the following:

(i)            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;

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

(iii)          with
respect to Eurodollar Loans that are Revolving Credit Loans, an Interest Period
that otherwise would extend beyond the Revolving Credit Termination Date shall
end on the Revolving Credit Termination Date;

(iv)          with
respect to any Eurodollar Loans that are Term Loans, an Interest Period that
otherwise would extend beyond the Term Loan Maturity Date shall end on the Term
Loan Maturity Date; and

 13
 

 

(v)           the
Borrower shall select Interest Periods so as not to require a payment or
prepayment of any Eurodollar Loan during an Interest Period for such Loan.

“Investments”: 
investments (by loan or extension of credit, purchase, advance,
guaranty, capital contribution or otherwise) made in cash or by delivery of
Property, by any of the Parent or any Subsidiary (a) in any Person, whether by
acquisition of stock or other ownership interest, indebtedness or other
obligation or Security, or by loan, advance or capital contribution or (b) in
any Property.

“Issuing Bank”: 
PNC, in its capacity as issuer of Letters of Credit, and any successor
thereto.

“Joinder”: 
a Joinder Agreement in a form acceptable to the Administrative Agent
pursuant to which a Subsidiary of the Borrower shall join the applicable Loan
Documents pursuant to Section 5.15, as amended, supplemented or otherwise
modified from time to time.

“Law”: 
any law (including common law), constitution, statute, treaty,
regulation, rule, ordinance, opinion, release, ruling, order, injunction, writ,
decree or award of any Governmental Authority.

“L/C Disbursement”: a payment or disbursement
made by the Issuing Bank pursuant to a Letter of Credit.

“L/C Sublimit”: 
$2,000,000.

“Lead Arranger”:  PNC Capital Markets LLC, in its capacity as
Lead Arranger.

“Lender”: 
as defined in the Preamble hereto and any other Person that becomes a
Lender hereunder by reason of an Assignment and Assumption.

“Letter of Credit Coverage Requirement”:  with respect to each Letter of Credit at any
time, 102% of the maximum amount available to be drawn thereunder at such time
(determined without regard to whether any conditions to drawing could be met at
such time).

“Letter of Credit Fee”:  has the meaning assigned to that term in
subsection 2.4(b).

“Letter of Credit Obligations”:  at any time, an amount equal to the sum of
(a) 100% of the maximum amount available to be drawn under all Letters of
Credit outstanding at such time (determined without regard to whether any
conditions to drawing could be met at such time) and (b) the aggregate amount
of drawings under Letters of Credit which have not then been reimbursed
pursuant to subsection 2.4(d)(i).

“Letter of Credit Participant”:  in respect of each Letter of Credit, each
Lender (other than the Issuing Bank) in its capacity as the holder of a
participating interest in such Letter of Credit.

 14
 

 

“Letters of Credit”:  collectively, the Existing Letters of Credit
and any letters of credit issued by the Issuing Bank under Section 2.4, as
amended, supplemented, extended or otherwise modified from time to time.

“Lien”: 
any mortgage, deed of trust, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or any preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever (including, without
limitation, any conditional sale or other title retention agreement and any capital
lease having substantially the same economic effect as any of the foregoing).

“Liquidity Level”:  at any particular time, an amount equal to
the sum of the Borrowing Availability and cash and Cash Equivalents maintained
in Unrestricted Investment Accounts as determined for the Parent and its Subsidiaries on a consolidated basis in accordance
with GAAP.

“Loan Documents”:  the collective reference to this Agreement,
the Notes, the Security Documents, the Applications, the Letters of Credit, the
Joinders, the Fee Letter and any Subordination Agreement(s) hereinafter entered
into, and all other documents, instruments, agreements or certificates
delivered in connection herewith, in each case as amended, supplemented or
otherwise modified.

“Loan Parties”: 
the Borrower, the Parent and each of their Subsidiaries that is party to
a Loan Document.

“Loans”: 
the collective reference to the Revolving Credit Loans and the Term
Loans.  Each Revolving Credit Loan and
Term Loan shall be either a Eurodollar Loan or a Base Rate Loan.

“Managing Agent”:  Wachovia Bank, National Association, in its
capacity as Managing Agent.

“Material Adverse Effect”:  a material adverse effect on (a) the validity
or enforceability of this Agreement or any other Loan Document, (b) the business,
Property, assets, financial condition or results of operations of the Parent
and its Subsidiaries taken as a whole, (c) the ability of the Parent and its
Subsidiaries to duly and punctually to pay their debts as they come due and to
perform their obligations under the Loan Documents, or (d) the ability of the
Administrative Agent and the Lenders to enforce their legal remedies pursuant
to this Agreement or any other Loan Document.

“Material Recovery Event”:  the receipt by the Parent or any of its Subsidiaries
of property, casualty or condemnation award proceeds in excess of $1,000,000.

“Materials of Environmental Concern”:  any gasoline or petroleum (including crude
oil or any fraction thereof) or petroleum products or any hazardous or toxic
substances, materials or wastes, defined or regulated as such in or under any
Environmental Law, including, without limitation, asbestos, polychlorinated
biphynels, and ureaformaldehyde insulation.

 15
 

 

“Modified EBITDA”:  for any period of four consecutive fiscal
quarters (each a “Reference Period”), EBITDA for such Reference Period;
provided that, if at any time during such Reference Period, the Borrower or any
of its Subsidiaries shall have acquired the stock or assets of any Person in a
Permitted Acquisition, then so long as (a) the Lenders shall have received
audited financial statements for the prior two (2) years prepared on a GAAP
basis or an independent third-party due diligence report for such Person from a
nationally recognized accounting firm or other nationally recognized firm
reasonably acceptable to the Administrative Agent, (b) the Person who is being
acquired or who will own the assets being acquired is (or shall, upon closing
of such acquisition, become) a Guarantor, unless such Person is a Foreign Subsidiary,
and (c) the Borrower complies with Section 5.15 hereof, Modified EBITDA shall
include (i) the historical EBITDA of such Person or attributable to such assets
for the period from the beginning of such Reference Period to the day
immediately preceding the closing date of such Permitted Acquisition and
(ii) such adjustments to such actual EBITDA as shall be determined by the
Required Lenders in their sole discretion; provided, that, if
audited financial statements or third-party due diligence report have not been
provided to the Lenders, (I) the historical EBITDA, if positive, of such Person
or attributable to such assets shall not be included in the calculation of
Modified EBITDA, unless consented to in writing by the Required Lenders in
their sole discretion and (II) the historical EBITDA, if negative, of such
Person or attributable to such assets shall be included in the calculation of
Modified EBITDA, unless the Required Lenders in their sole discretion elect
otherwise; provided, further, that, notwithstanding the
foregoing, Modified EBITDA shall include (w) for the period ending September
30, 2006, one hundred percent (100%) of the historical EBITDA and adjustments
thereto set forth on Schedule II hereto for the Targets and their
Subsidiaries for the period prior to the Closing Date, (x) for the period
ending December 31, 2006, seventy-five percent (75%) of such historical EBITDA
and adjustments, (y) for the period ending March 31, 2007, fifty percent (50%)
of such historical EBITDA and adjustments and (z) for the period ending June
30, 2007, twenty-five percent (25%) of such historical EBITDA and adjustments.

“Moody’s”: 
Moody’s Investors Services, Inc.

“Multiemployer Plan”:  a Plan which is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA and to which the Parent or its
Subsidiaries, or a Commonly Controlled Entity of any of the foregoing, is
making or is obligated to make contributions, or has made, or been obligated to
make, contributions.

“Net Proceeds”: 
(a) with respect to the sale or issuance after the Closing Date of any
Capital Stock of the Parent or the incurrence of additional Indebtedness for
borrowed money by the Parent or any Subsidiary thereof, the amount equal to (i)
the aggregate amount received in cash in connection with such sale or issuance
or incurrence minus (ii) the reasonable fees, commissions and other
out-of-pocket expenses incurred by the Parent or such Subsidiary in connection
with such sale or issuance or incurrence, (b) with respect to any Asset Sale,
the amount equal to (i) the aggregate amount received in cash (including any
cash received by way of deferred payment pursuant to a note receivable, other
non-cash consideration or otherwise, but only as and when such cash is so
received) in connection with such Asset Sale minus (ii) the sum of (I) the
principal amount of Indebtedness which is secured by the asset that is the
subject of such Asset Sale (other than Indebtedness assumed by the purchaser of
such asset) and which is required to be, and is, repaid in connection with such
Asset Sale (other than Indebtedness

 16
 

 

hereunder), (II) the reasonable fees, commissions,
income taxes and other out-of-pocket expenses incurred by the Parent or such
Subsidiary in connection with such Asset Sale and (III) amounts established as
a reserve, reasonably established by the Borrower or its Subsidiaries (in
accordance with GAAP), against liabilities under any indemnification
obligations associated with such Asset Sale or other liabilities retained by
the Borrower and its Subsidiaries associated with the properties sold pursuant
to such Asset Sale (provided that, to the extent and at the time such
amounts are released from such reserve, such amounts shall constitute Net
Proceeds), (c) with respect to any Material Recovery Event, the amount equal to
(a) the aggregate amount of the property, casualty or condemnation award
proceeds received by the Parent or any Subsidiary in connection with such
Material Recovery Event minus (b) the reasonable fees and other out-of-pocket
expenses incurred by the Parent and its Subsidiaries in connection with
recovering such proceeds and (d) with respect to any BrassRing Escrow Event,
the amount equal to (i) the aggregate amount of the proceeds received by the
Parent or any Subsidiary in connection with such BrassRing Escrow Event minus
(ii) the reasonable fees and other out-of-pocket expenses incurred by the
Parent and its Subsidiaries in connection with recovering such amount.

“Non-Loan Party”:  any Subsidiary of the Borrower other than a
Guarantor.  The Non-Loan Parties as of
the Closing Date are BrassRing Canada, Inc, BrassRing Holdings BV, BrassRing
Ltd, BrassRing GmbH, BrassRing Asia Pacific Ltd., BrassRing BV, Kenexa Limited,
Kenexa Technologies Private Limited, Xplore Tower Sdn.  Bhd. and Kenexa Technology Canada Inc., all
of whom are Foreign Subsidiaries, and (subject to Section 5.18) Kenexa Care,
Inc.

“Notes”: 
the collective reference to the Revolving Credit Notes and the Term
Notes.

“Notice of Borrowing”:  with respect to any Loan, a notice from the
Borrower in respect of such Loan, containing the information in respect of such
Loan and delivered to the Administrative Agent, in the manner and by the time
specified pursuant to the terms hereof. 
A form of the Notice of Borrowing is attached hereto as Exhibit B.

“Obligations”: 
collectively, (a) all Reimbursement Obligations and all unpaid principal
of and accrued and unpaid interest on (including, without limitation, any
interest accruing subsequent to the commencement of a bankruptcy, insolvency or
similar proceeding with respect to the Borrower, whether or not such interest
constitutes an allowed claim in such proceeding) the Loans, (b) all accrued and
unpaid fees arising or incurred under this Agreement or any other Loan
Document, (c) any other amounts due hereunder or under any of the other Loan
Documents, including all reimbursements, indemnities, fees, costs, expenses,
prepayment premiums, break-funding costs and other obligations of the Borrower
or any other Loan Party to the Administrative Agent, any Lender or any
indemnified party hereunder or thereunder, (d) any obligations owed by the
Borrower or any other Loan Party to any Lender or to any Affiliate of any
Lender pursuant to a Hedge Agreement, and (e) all out-of-pocket costs and
expenses incurred by the Administrative Agent and the Lenders in connection
with this Agreement and the other Loan Documents, including but not limited to
the reasonable fees and expenses of the Administrative Agent’s counsel and each
Lender’s counsel, which the Borrower is responsible to pay pursuant to the
terms of this Agreement and/or the other Loan Documents.

 17
 

 

“Participant”: 
as defined in subsection 9.6(f).

“Parent”: 
Kenexa Corporation, a Pennsylvania corporation.

“PBGC”: 
the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA, or any Governmental Authority
succeeding to the function thereof.

“Permitted Acquisition”:  subject
to compliance with Section 6.6, an acquisition by the Borrower or any
Subsidiary thereof (whether by merger, consolidation, reorganization or
purchase of assets or stock or other ownership interests) of any Person engaged
in a business that the Borrower and its Subsidiaries are permitted to engage in
pursuant to Section 6.10 that is not hostile in nature; provided, that,
at the time that any definitive agreement is entered into in respect of such
acquisition (or immediately prior to the closing of such agreement if such
agreement contains a contingency for any approval required under this Agreement
with respect to such acquisition), no Default or Event of Default shall exist
or would exist if such acquisition were consummated on such date (assuming for
purposes of the covenants contained in Section 6.1, that pro forma
adjustments are made to the consolidated financial statements of the Parent and
its Subsidiaries in accordance with the terms hereof reflecting such
acquisition based on the historical audited financial statements (on a GAAP
basis) or independent third party due diligence report and other information of
such Person received by the Administrative Agent prior to the consummation of
such acquisition), provided  further, that approval of the
Required Lenders shall be required for any such acquisition if
(a)  at the time of and after giving effect to such acquisition, the
Parent and its Subsidiaries have on deposit, in the aggregate, less than
$15,000,000 in cash and Cash Equivalents in Unrestricted Investment Accounts,
(b) the aggregate consideration paid or proposed to be paid by the Borrower
and its Subsidiaries with respect to such acquisition (including earn-outs,
payments under non-compete arrangements and any assumption of Indebtedness)
(the “Consideration”) exceeds $15,000,000, (c) the Consideration of
all Permitted Acquisitions (including the proposed acquisition) exceeds in the
aggregate $25,000,000 during the twelve-month period then ended, excluding
Consideration paid in connection with any acquisition consummated on or prior
to the Closing Date or (d) such acquisition is entered into prior to April
1, 2007 and the Consideration therefor is $10,000,000 or more.  Notwithstanding anything to the contrary, the
BrassRing Acquisition shall be considered a Permitted Acquisition.

“Permitted Investments”:  Investments in:

(a)           one
or more Subsidiaries of the Borrower; provided  that the aggregate
amount of net Investments made by the Borrower and the other Loan Parties in
Non-Loan Parties shall not exceed $10,000,000 in the aggregate for the period
from and after the Closing Date, including, in each case any Investments made
after the Closing Date in Non-Loan Parties pursuant to any other provisions of
this definition including clause (o) below (measured, with respect to any
Permitted Acquisition involving the assets or stock of a Non-Loan Party, as the
purchase price for such assets or stock as reasonably determined by the
Borrower);

 18
 

 

(b)           Property
to be used in the ordinary course of business of the Borrower and its
Subsidiaries;

(c)           current
assets arising from the sale or purchase of goods and services in the ordinary
course of business of the Borrower and the Subsidiaries;

(d)           direct
obligations of the United States of America or any agency or instrumentality
thereof, or obligations guaranteed by the United States of America or any
agency or instrumentality thereof, provided that such obligations mature within
one (1) year from the date of acquisition thereof;

(e)           certificates
of deposit, time deposits or banker’s acceptances, maturing within one (1) year
from the date of acquisition, with banks or trust companies organized under the
laws of the United States, the unsecured long-term debt obligations of which
are rated “A3” or higher by Moody’s or “A-” or higher by S&P, and issued,
or in the case of banker’s acceptance, accepted, by a bank or trust company
having capital, surplus and undivided profits aggregating at least
$500,000,000;

(f)            commercial
paper given the highest rating by either S&P or Moody’s maturing not more
than 270 days from the date of creation thereof;

(g)           in
“money market funds” within the meaning of Rule 2a-7 of the Investment Company
Act of 1940, as amended;

(h)           in
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 clauses (d) through (g);

(i)            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;

(j)            in
connection with Hedge Agreements that are permitted pursuant to Section 6.2
hereof;

(k)           Investments
in connection with any cash management agreements with PNC;

(l)            trade
credit extended on usual and customary terms in the ordinary course of
business;

(m)          loans
to shareholders, directors or officers in an aggregate amount not to exceed
$500,000 at any one time outstanding;

(n)           advances
to employees to meet expenses incurred by such employees in the ordinary course
of business in an aggregate amount not to exceed $500,000 at
any one time outstanding;

 19
 

 

(o)           Investments
existing on the date hereof and set forth on Schedule IV hereto;

(p)           Permitted
Acquisitions; and

(q)           Investments
not otherwise provided in clauses (a) through (p) above in an aggregate amount
not to exceed $250,000 outstanding at any one time.

“Permitted Liens”:  as defined in Section 6.3.

“Person”: 
an individual, partnership, corporation, limited liability company,
limited liability partnership, business trust, joint stock company, trust,
unincorporated association, joint venture, Governmental Authority or other
entity of whatever nature.

“Plan”: 
at a particular time, any employee benefit plan which is covered by
ERISA and in respect of which the Parent, the Borrower, any Subsidiary or a
Commonly Controlled Entity is (or, if such plan were terminated at such time,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

“Pledge Agreement”:  (a) the Pledge Agreement or Agreements, dated
as of the date hereof, to be executed and delivered on the Closing Date and (b)
any other Pledge Agreement between a Loan Party and the Administrative Agent,
each substantially in the form of Exhibit E hereto, as amended,
supplemented or otherwise modified from time to time.

“PNC”: 
PNC Bank, National Association.

“Prime Rate”: 
the rate of interest per annum publicly announced from time to time by
PNC as its prime rate in effect at its principal office in Philadelphia,
Pennsylvania, which rate may not be the lowest rate then being charged to
commercial borrowers by PNC; each change in the Prime Rate shall be effective
on the date such change is publicly announced as effective.

“Properties”: 
the collective reference to the facilities and properties owned, leased
or operated by the Parent and its Subsidiaries.

“Purchasing Lender”:  as defined in subsection 9.6(b).

“Register”: 
as defined in subsection 9.6(d).

“Regulations D, T, U and X”:  Regulations D, T, U and X promulgated by the
Board of Governors of the Federal Reserve System (12 C.F.R. Part 204 et seq.,
12 C.F.R. part 220 et seq., 12 C.F.R. Part 221 et seq.
and 12 C.F.R. Part 224 et seq., respectively), as such
regulations are now in effect and as may hereafter be amended.

“Reimbursement Obligations”:  in respect of each Letter of Credit, the
obligation of the Borrower to reimburse the Issuing Bank for all drawings made
thereunder in accordance with subsection 2.4(d) and the Application related to
such Letter of Credit for amounts drawn under such Letter of Credit.

 20

 

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section
4241 of ERISA.

“Reportable Event”:  any of the events set forth in Section
4043(c)(1), (2), (4), (5), (6), (10) and (13) of ERISA.

“Required Lenders”:  at any time, such Lenders as hold,
individually or collectively, at least (a) 66 2/3% of the sum of
(i) the Revolving Credit Commitments and (ii) the aggregate principal
amount of the Term Loans then outstanding, or (b) in the event that the
Revolving Credit Commitments have expired or terminated, 66 2/3% of the Total
Exposure of all of the Lenders at such time.

“Requirement of Law”:  as to any Person, the Articles or Certificate
of Incorporation or Formation, By-Laws, partnership agreement, operating
agreement or other organizational or governing documents of such Person, and
any law, treaty, rule or regulation or determination of an arbitrator or a
court or other Governmental Authority, in each case binding upon such Person or
any of its property or to which such Person or any of its property is subject.

“Responsible Officer”:  with respect to any Person, the chief
executive officer, president, chief or principal financial officer or
controller of such Person.  Unless otherwise
qualified, all references to a “Responsible Officer” in this Agreement shall
refer to a Responsible Officer of the Borrower.

“Revolving Credit Commitment”:  with respect to each Revolving Credit Lender,
the commitment of such Lender to make Revolving Credit Loans and/or participate
in Letters of Credit in the aggregate amount not to exceed at any one time
outstanding:  (a) as to any Revolving
Credit Lender which is an original signatory to this Agreement, the amount set
forth opposite such Lender’s name on Schedule I hereto under the
caption “Revolving Credit Loans,” as such amount may be increased or decreased
from time to time in accordance with the provisions of this Agreement, or (b)
as to any Revolving Credit Lender which is not an original signatory to this
Agreement but which becomes a Revolving Credit Lender by executing an
Assignment and Assumption, the Revolving Credit Commitment for such Lender set
forth on Schedule I to such Assignment and Assumption, as such
amount may be increased or decreased from time to time in accordance with the
provisions of this Agreement.  The
aggregate amount of the Revolving Credit Commitments on the Closing Date is
$25,000,000.

“Revolving Credit Commitment Percentage”:  as to any Revolving Credit Lender at any time,
the percentage which such Lender’s Revolving Credit Commitment then constitutes
of the aggregate Revolving Credit Commitments of all of the Revolving Credit
Lenders at such time (or, at any time after the Revolving Credit Commitments
shall have expired or been terminated, the percentage which such Lender’s
Revolving Credit Exposure constitutes of the Revolving Credit Exposure of all
of the Revolving Credit Lenders at such time).

“Revolving Credit Commitment Period”:  the period from and including the Closing
Date to, but not including, the Revolving Credit Termination Date, or such
earlier date on which the Revolving Credit Commitments shall terminate in their
entirety as provided herein.

 21
 

 

“Revolving Credit Exposure”:  as to any Revolving Credit Lender at any
time, the sum of (a) the aggregate principal amount of all Revolving Credit
Loans made by such Lender then outstanding and (b) such Lender’s Revolving
Credit Commitment Percentage multiplied by the aggregate Letter of Credit
Obligations at such time.

“Revolving Credit Lender”:  at any time, any Lender having a Revolving
Credit Commitment and/or outstanding Revolving Credit Loans or issuing or
participating in Letters of Credit.

“Revolving Credit Loans”:  as defined in subsection 2.1(a).

“Revolving Credit Note”:  as defined in subsection 2.2(a).

“Revolving Credit Termination Date”:  the earlier of (a) November 12,
2011 and (b) the date the Revolving Credit Commitments are terminated in
their entirety as provided herein.

“SEC”: 
the Securities and Exchange Commission or any successor governmental
agency thereof.

“S&P”: 
Standard & Poor’s Rating Group, a division of McGraw-Hill
Corporation.

“Security”: 
“security” as defined in Section 2(1) of the Securities Act of 1933, as
amended.

“Security Agreement”:  (a) the Security Agreement entered into on
the Closing Date among the Borrower, the Guarantors as of such date and the
Administrative Agent for the benefit of the secured parties thereunder
(including the Lenders) and (b) any other Security Agreement entered into by a
Guarantor and the Administrative Agent, in each case substantially in the form
of Exhibit F hereto, as the same may be amended, supplemented or
otherwise modified from time to time.

“Security Documents”:  collectively, any and all of (a) the Security
Agreement(s), (b) the Guaranty(ies), (c) the Pledge Agreement(s) and (d) all
additional documents and instruments entered into from time to time for the
purpose of securing the Obligations, as the foregoing may be amended,
supplemented or otherwise modified from time to time.

“Solvent”:  as to any Person, as of the time of
determination, the financial condition under which the following conditions are
satisfied:

(a)           the
fair market value of the assets of such Person will exceed the debts and
liabilities, subordinated, contingent or otherwise, of such Person;

(b)           the
present fair saleable value of the Property of such Person will be greater than
the amount that will be required to pay the probable liability of such Person
on its debts and other liabilities, subordinated, contingent or otherwise, as
such debts and other liabilities become absolute and matured;

 22
 

 

(c)           such
Person intends and will be able to pay its debts and liabilities, subordinated,
contingent or otherwise, as such debts and liabilities become absolute and
matured; and

(d)           such
Person will not have unreasonably small capital with which to conduct the
business in which it is engaged as such business is then conducted and is
proposed to be conducted after the date thereof.

“Subordinated Debt”: 
Indebtedness of the Borrower and its Subsidiaries which is subordinated
to the Obligations in a manner satisfactory to the Administrative Agent,
including that (a) no portion of the principal of such Indebtedness shall be
payable prior to ninety (90) days after the later of the Revolving Credit
Termination Date and the Term Loan Maturity Date, (b) such Indebtedness
shall be unsecured and (c) the subordinated creditor(s) shall be subject to a
standstill period of at least one hundred eighty (180) days with respect to the
exercise of its remedies following the occurrence of an Event of Default.

“Subsidiary”: 
as to any Person, a corporation, partnership, limited liability company
or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests
having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation,
partnership, limited liability company or other entity are at the time owned,
or the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of the Parent.

“Targets”: 
BrassRing LLC, BrassRing Inc. and their subsidiaries being acquired
pursuant to the BrassRing Acquisition.

“Taxes”: 
as defined in Section 2.13.

“Term Loan”: 
as defined in subsection 2.1(b).

“Term Loan Lender”:  at any time, any Lender which has a Term Loan
Commitment or which holds an outstanding Term Loan.

“Term Loan Commitment”:  with respect to each Term Loan Lender, the
commitment of such Lender to make a Term Loan on the Closing Date pursuant to
subsection 2.1(b) in an amount not to exceed the amount set forth opposite such
Lender’s name on Schedule I hereto with respect to Term Loans.  The aggregate amount of the Term Loan
Commitments on the Closing Date is $50,000,000.

“Term Loan Maturity Date”:  October 1, 2012.

“Term Loan Percentage”:  as to any Term Loan Lender, (a) until the
funding of the Term Loans, the percentage which such Lender’s Term Loan
Commitment constitutes of the aggregate Term Loan Commitments of all of the
Term Loan Lenders and (b) thereafter, the

 23
 

 

percentage which such Lender’s Term Loan constitutes
of the aggregate Term Loans of all of the Term Loan Lenders then outstanding.

“Term Notes”: 
as defined in subsection 2.2(b)(i).

“Total Debt”: 
at any time, all Indebtedness of the Parent and its Subsidiaries at such
time determined on a consolidated basis in accordance with GAAP and without
duplication.

“Total Exposure”:  as to any Lender, at any time, the sum of
(a) the Revolving Credit Exposure of such Lender at such time and
(b) the aggregate amount of all Term Loans made by such Lender then
outstanding.

“Total Leverage Ratio”:  as of the last day of any fiscal quarter, the
ratio of (a) Total Debt at such date to (b) Modified EBITDA for the period
of four (4) consecutive fiscal quarters ending on such date.

“Total Net Debt”:  at any time (a) Total Debt at such time minus
(b) to the extent in excess of seven million five hundred thousand Dollars
($7,500,000), the lesser of (i) the average daily balance of cash and/or Cash
Equivalents maintained by the Parent and its Subsidiaries in Unrestricted
Investment Accounts during the fiscal quarter most recently ended and (ii) the
outstanding balance of cash and Cash Equivalents maintained by the Parent and
its Subsidiaries in Unrestricted Investment Accounts as of the last day of the
fiscal quarter most recently ended.

“Total Net Leverage Ratio”:  as of the last day any fiscal quarter, the
ratio of (a) Total Net Debt at such date to (b) Modified EBITDA for
the period of four (4) consecutive fiscal quarters ending on such date.

“Total Percentage”:  as to any Lender at any time, the percentage
which such Lender’s Revolving Credit Commitment plus principal amount of Term
Loans then outstanding then constitutes of the aggregate Revolving Credit
Commitments and principal amount of Term Loans then outstanding (or at any time
after the Revolving Credit Commitments shall have expired or been terminated,
the percentage which such Lender’s Total Exposure constitutes of the Total
Exposure of all of the Lenders at such time).

“Tranche”: 
the collective reference to (a) Eurodollar Loans whose Interest Periods
begin on the same date and end on the same later date (whether or not such
Loans originally were made on the same date) and (b) Base Rate Loans.

“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 determined.  For purposes
hereof, “Rate” shall include the Eurodollar Rate and the Base Rate.

“Unrestricted Investment Account”:  each investment account maintained by the
Parent and/or a Subsidiary thereof at a Lender or Affiliate thereof and which
has been designated by the Borrower and accepted by the Administrative Agent as
an “Unrestricted Investment Account.” 
For the avoidance of doubt, an operating account shall not constitute an
Unrestricted Investment Account.

 24
 

 

“Unused Revolving Credit Commitment”:  as to any Lender at any particular time during
the Revolving Credit Commitment Period, an amount equal to the excess, if any,
of the Revolving Credit Commitment of such Lender at such time over the
Revolving Credit Exposure of such Lender at such time.

“USA Patriot Act”:  the Uniting Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Public Law 107-56, as the same has been, or shall hereafter be, renewed,
extended, amended or replaced.

“Withdrawal Liability”:  any withdrawal liability as defined in
Section 4201 of ERISA.

1.2           Other Definitional
Provisions.  (a)  Unless otherwise specified therein,
all terms defined in this Agreement shall have the defined meanings when used
in the Notes, the other Loan Documents or any certificate or other document
made or delivered pursuant hereto or thereto. 
Except as otherwise provided in this Agreement, all computations and
determinations as to accounting or financial matters and all financial
statements to be delivered pursuant to this Agreement shall be made and
prepared in accordance with GAAP (including principals of consolidation where
appropriate).  As used herein and in the
Notes and the other Loan Documents, and any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms relating to the
Parent and its Subsidiaries not defined in Section 1.1 and accounting terms
partly defined in Section 1.1, to the extent not defined, shall have the
respective meanings given to them under GAAP.

(b)           The
words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section, Subsection, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

(c)           The
meanings given to terms defined in this Agreement shall be equally applicable
to both the singular and plural forms of such terms.

SECTION
2.  LOANS AND TERMS OF COMMITMENTS

2.1           Commitments.

(a)           Revolving
Credit Commitments.  Subject to the
terms and conditions hereof, each Revolving Credit Lender severally agrees to
make revolving credit loans (the “Revolving Credit Loans”) to the
Borrower from time to time during the Revolving Credit Commitment Period in an
aggregate principal amount at any one time outstanding not to exceed the amount
of such Lender’s Revolving Credit Commitment minus the sum of such Lender’s
Revolving Credit Commitment Percentage of all Letter of Credit Obligations then
outstanding; provided that no Revolving Credit Loan shall be made if,
after giving effect thereto and the simultaneous application of the proceeds
thereof, the Revolving Credit Exposure of all Revolving Credit Lenders would
exceed the Revolving Credit Commitments of all Revolving Credit Lenders at such
time.  If at any time the aggregate
Revolving Credit Exposure of all of the Revolving Credit Lenders exceeds the
Revolving Credit Commitments of all of the Revolving Credit Lenders at such
time, the Borrower shall promptly prepay the excess to the Administrative

 25
 

 

Agent, to be
applied first to repay the Revolving Credit Loans and then as cash collateral
to secure the Letter of Credit Obligations. 
Unless otherwise directed by the Borrower, payments on Revolving Credit
Loans pursuant to the preceding sentence shall be applied first to Base Rate
Loans and then to Eurodollar Loans in the direct order of maturity.  The Revolving Credit Commitments may be
reduced or terminated from time to time pursuant to Section 2.9.  Within the foregoing limits, the Borrower may
during the Revolving Credit Commitment Period borrow, repay and reborrow from
time to time under the Revolving Credit Commitments, subject to and in
accordance with the terms and limitations hereof.  The failure of any Revolving Credit Lender to
perform its obligations hereunder shall not relieve any other Revolving Credit
Lender of its obligations hereunder (it being understood, however, that no
Revolving Credit Lender shall be responsible for the failure of any other
Revolving Credit Lender to make any Revolving Credit Loan required to be made
by such other Revolving Credit Lender). 
Each Revolving Credit Loan shall be made in accordance with the
procedures set forth in Section 2.3.

(b)           Term
Loan Commitments.  Subject to the
terms and conditions hereof, each Term Loan Lender severally agrees to make to
the Borrower on the Closing Date a term loan (hereinafter separately called a “Term
Loan” and collectively the “Term Loans”) in an amount equal to its
Term Loan Percentage of the aggregate amount of Term Loans requested by the
Borrower but not to exceed such Term Loan Lender’s Term Loan Commitment.  The Term Loan Commitment of each Term Loan
Lender shall terminate on the Closing Date upon the making of such Term Loan
and no portion of a Term Loan which is repaid may be reborrowed.  Subject to any prepayment obligation provided
in this Agreement, the outstanding principal amount of the Term Loans shall be
due and payable in quarterly principal installments payable on the first day of
each calendar quarter as set forth on Schedule 2.1(b) hereto with all
outstanding principal and accrued interest due and payable on the Term Loan
Maturity Date.  The failure of any Term
Loan Lender to perform its obligations hereunder shall not relieve any other
Term Loan Lender of its obligations hereunder (it being understood, however,
that no Term Loan Lender shall be responsible for the failure of any other Term
Loan Lender to make any Term Loan required to be made by such other Term Loan
Lender).

2.2           Notes.

(a)           Revolving
Credit Notes.  The Revolving Credit
Loans made by each Revolving Credit Lender shall be evidenced by a promissory
note of the Borrower, substantially in the form of Exhibit A-1
hereto, with appropriate insertions as to payee, date and principal amount (as
each may be amended, supplemented or otherwise modified, a “Revolving Credit
Note”), payable to the order of such Revolving Credit Lender and in a
principal amount equal to the amount of the initial Revolving Credit Commitment
of such Revolving Credit Lender.  Each
Revolving Credit Lender is hereby authorized to record the date, Type, and
amount of each Revolving Credit Loan made by such Revolving Credit Lender, and
the date and amount of each payment or prepayment of principal thereof, on the
schedule annexed to and constituting a part of its Revolving Credit Note,
provided that the failure of any Revolving Credit Lender to make such
recordation (or any error in such recordation) shall not affect the obligations
of the Borrower hereunder or under such Revolving Credit Note.  Each Revolving Credit Note shall (a) be
dated the Closing Date, (b) be stated to mature on the Revolving Credit
Termination Date and (c) provide for the payment of interest in accordance
with Sections 2.5 and 2.6.

 26
 

 

(b)           Term
Notes.  The Term Loan made by each
Term Loan Lender shall be evidenced by a promissory note of the Borrower,
substantially in the form of Exhibit A-2 hereto, with
appropriate insertions as to payee, date and principal amount (as each may be
amended, supplemented or otherwise modified, a “Term Note”), payable to
the order of such Lender and in a principal amount equal to the principal
amount of such Lender’s Term Loan.  Each
Term Loan Lender is hereby authorized to record the date, Type and amount of
the Term Loan made by such Term Loan Lender, and the date and amount of each
payment or prepayment of principal thereof, on the schedule annexed to and
constituting a part of its Term Note, provided that the failure of any Term
Loan Lender to make such recordation (or any error in such recordation) shall
not affect the obligations of the Borrower hereunder or under such Term
Note.  Each Term Note shall (a) be
dated the Closing Date, (b) be stated to mature on the Term Loan Maturity Date
and (c) provide for the payment of interest in accordance with Sections 2.5 and
2.6 hereof.

2.3           Procedure for
Revolving Credit Loans and Term Loans. 
The Borrower may borrow (a) under the Revolving Credit Commitments from
time to time during the Revolving Credit Commitment Period on any Business Day
and (b) Term Loans only on the Closing Date. 
The Borrower shall give the Administrative Agent a Notice of Borrowing
(a) in the case of a Eurodollar Borrowing, not later than 10:30 a.m.,
Philadelphia time, three (3) Business Days before such proposed Borrowing and
(b) in the case of a Base Rate Borrowing, not later than 10:30 a.m.,
Philadelphia time, on the day of such proposed Borrowing.  All Loans borrowed on the Closing Date shall
initially be Base Rate Loans, provided that such Loans can be converted
thereafter to Eurodollar Loans in accordance with the terms hereof.  Such Notice of Borrowing shall be irrevocable
and shall in each case specify (a) whether the Borrowing then being requested
is to be a Revolving Credit Loan or Term Loan; (b) the date of such Borrowing
(which shall be a Business Day) and the amount thereof; and (c) if such
Borrowing is to be a Eurodollar Borrowing, the Interest Period with respect
thereto.  If no election as to the Type
of Borrowing is specified in any such notice, then the requested Borrowing
shall be a Base Rate Borrowing.  If no
Interest Period with respect to any Eurodollar Borrowing is specified in any
such notice, then the Borrower shall be deemed to have selected an Interest Period
of one month’s duration.  Each borrowing
under the Revolving Credit Commitments shall be in a minimum amount equal to
(x) with respect to Eurodollar Borrowings, $500,000 or in integral multiples of
$500,000 in excess thereof and (y) with respect to Base Rate Borrowings,
$500,000 or in integral multiples of $100,000 in excess thereof (or, with
respect to Base Rate Borrowings, if the aggregate Unused Revolving Credit
Commitments at such time are less than $500,000, such lesser amount, as
applicable).

Upon receipt of a Notice of Borrowing from the Borrower, the
Administrative Agent shall promptly notify each Revolving Credit Lender or Term
Loan Lender, as applicable, of such request. 
Each Revolving Credit Lender or Term Loan Lender, as the case may be, will
make the amount of its pro rata share of such Borrowing
(based on its Revolving Credit Commitment Percentage or Term Loan Percentage,
as the case may be, at that time) available to the Administrative Agent for the
account of the Borrower at the office of the Administrative Agent specified in
Section 9.2 prior to 2:00 p.m., Philadelphia time, on the Borrowing Date
requested by the Borrower in funds immediately available to the Administrative
Agent.  Such Borrowing will then be made
available to the Borrower by the Administrative Agent crediting the account of
the Borrower on the books of the Administrative Agent with the aggregate of the

 27
 

 

amounts made available to the Administrative Agent by
the Lenders and in like funds as received by the Administrative Agent.

Unless the Administrative Agent shall have received notice from a
Revolving Credit Lender or Term Loan Lender, as the case may be, prior to the
date of any borrowing of Revolving Credit Loans or Term Loans, as applicable,
that such Lender will not make available to the Administrative Agent such
Lender’s pro rata portion of such Borrowing, the
Administrative Agent may assume that such Lender has made such portion
available to the Administrative Agent on the date of such borrowing in
accordance with this subsection and the Administrative Agent may, in reliance
upon such assumption, make available to the Borrower on such date a
corresponding amount.  If and to the
extent that such Lender shall not have made such portion available to the
Administrative Agent, such Lender and the Borrower (without prejudice to the
Borrower’s rights against such Lender) severally agree to repay to the
Administrative Agent forthwith on demand such corresponding amount together
with interest thereon, for each day from the date such amount is made available
to the Borrower until the date such amount is repaid to the Administrative
Agent at (i) in the case of the Borrower, the interest rate applicable at
the time to the Revolving Credit Loans or Term Loans, as the case may be,
comprising such Borrowing and (ii) in the case of such Lender, the Federal
Funds Effective Rate, provided, that, if such Lender shall not
pay such amount within three (3) Business Days of such Borrowing Date, the
interest rate on such overdue amount shall, at the expiration of such
three-Business Day period, be the rate per annum applicable to the Revolving
Credit Loans or the Term Loans, as the case may be, comprising such
Borrowing.  If such Lender shall repay to
the Administrative Agent such corresponding amount, such amount shall
constitute such Lender’s Revolving Credit Loan or Term Loan, as the case may
be, as part of such Borrowing for purposes of this Agreement.

2.4           Letter of Credit
Subfacility.

(a)           During
the Revolving Credit Commitment Period, the Borrower may request the issuance
of standby Letters of Credit to support obligations of the Borrower and the
other Loan Parties which finance the working capital and business needs of the
Borrower and the other Loan Parties by delivering to the Issuing Bank a
completed Application for letters of credit in such form and with such other
certificates, documents and information as the Issuing Bank may specify from
time to time by no later than 12:00 noon, Philadelphia time, at least five
(5) Business Days (or such shorter period as may be agreed to by the Issuing
Bank) in advance of the proposed date of issuance.  Each Application for issuance of a Letter of
Credit shall be accompanied by an issuance fee based upon the Issuing Bank’s
standard schedule of fees charged for issuing letters of credit as such may be
amended from time to time.  Subject to
the terms and conditions hereof and in reliance on the agreements of the other
Revolving Credit Lenders set forth in this Section, the Issuing Bank will issue
a Letter of Credit, provided, that each Letter of Credit shall
(i) have a maximum maturity of twelve (12) months from the date of
issuance, and (ii) in no event expire later than five (5) Business Days
prior to the Revolving Credit Termination Date, and provided  further,
that in no event shall the amount of the Letter of Credit Obligations at any
one time exceed the lesser of (i) the L/C Sublimit and (ii) the
aggregate Revolving Credit Commitments minus the aggregate principal
amount of the Revolving Credit Loans then outstanding.  The Issuing Bank shall not at any time be
obligated to issue any Letter of Credit hereunder if such issuance would
conflict with, or cause the Issuing Bank or any Letter

 28
 

 

of Credit
Participant to exceed, any limits imposed by any applicable Requirement of
Law.  Notwithstanding the provisions of
this Section, the Revolving Credit Lenders and the Borrower hereby agree that
the Issuing Bank may issue upon the Borrower’s request, one or more Letter(s)
of Credit which by its or their terms may be extended for additional periods of
up to one year each provided that (I) the initial expiration date (or any
subsequent expiration date) of each such Letter of Credit is not later than
five (5) Business Days prior to the Revolving Credit Termination Date, and
(II) renewal of such Letter(s) of Credit, at the Issuing Bank’s
discretion, shall be available upon written request from the Borrower to the
Issuing Bank at least thirty (30) days (or such other time period as agreed by
the Borrower and the Issuing Bank) before the date upon which notice of renewal
is otherwise required.

(b)           The
Borrower shall pay to the Administrative Agent for the ratable account of the
Revolving Credit Lenders a fee (the “Letter of Credit Fee”) equal to the
amount of the Applicable Margin for Revolving Credit Loans that are Eurodollar
Loans in effect from time to time multiplied by the daily average of the
undrawn face amount of each Letter of Credit during the preceding fiscal
quarter (or shorter period commencing with the Closing Date or ending on the
Revolving Credit Termination Date), and shall be payable quarterly in arrears
on each January 1, April 1, July 1 and October 1 commencing
with January 1, 2007 and on the Revolving Credit Termination Date.  The Borrower shall also pay to the Issuing
Bank the Issuing Bank’s then in effect customary fees, plus a fronting fee of
twelve and one-half basis points (.125%) on the face amount of each such Letter
of Credit, and administrative expenses payable with respect to each Letter of
Credit issued or renewed by it as the Issuing Bank may generally charge from
time to time.  Once paid, all of the
above fees shall be nonrefundable under all circumstances.  All periodic interest, fees and commissions
shall be calculated on the basis of the actual days elapsed in a 360 day year.

(c)           (i)            The Issuing Bank irrevocably agrees to
grant and hereby grants to each Letter of Credit Participant, and, to induce
the Issuing Bank to issue Letters of Credit hereunder, each Revolving Credit
Lender irrevocably agrees to accept and purchase and hereby accepts and
purchases from the Issuing Bank, on the terms and conditions hereinafter
stated, for such Letter of Credit Participant’s own account and risk, an
undivided interest equal to such Letter of Credit Participant’s Revolving
Credit Commitment Percentage in the Issuing Bank’s obligations and rights under
each Letter of Credit issued by the Issuing Bank (including the Existing
Letters of Credit) and the amount of each draft paid by the Issuing Bank
thereunder.  Each Letter of Credit Participant
unconditionally and irrevocably agrees with the Issuing Bank that, if a draft
is paid under any Letter of Credit issued by the Issuing Bank for which the
Issuing Bank is not reimbursed in full by the Borrower in accordance with the
terms of this Agreement, such Letter of Credit Participant shall pay to the
Issuing Bank upon demand at the Issuing Bank’s address for notices specified
herein an amount equal to such Letter of Credit Participant’s share (based on
its Revolving Credit Commitment Percentage) of (x) the amount of such draft or
any part thereof, which is not so reimbursed and (y) any taxes, fees, charges
or other costs or expenses incurred by the Issuing Bank in connection with such
payment.  Any action taken or omitted by
the Issuing Bank under or in connection with a Letter of Credit, if taken or
omitted in the absence of gross negligence or willful misconduct, shall not
create for the Issuing Bank any resulting liability to any Lender.

 29
 

 

(ii)           If
any amount required to be paid by any Letter of Credit Participant to the
Issuing Bank pursuant to subsection 2.4(c)(i) in respect of any unreimbursed
portion of any payment made by the Issuing Bank under any Letter of Credit is
not paid to the Issuing Bank on the date such payment is due from such Letter
of Credit Participant, such Letter of Credit Participant shall pay to the
Issuing Bank on demand an amount equal to the product of (x) such amount, times
(y) the daily average Federal Funds Effective Rate, as quoted by the Issuing
Bank, during the period from and including the date such payment is required to
the date on which such payment is immediately available to the Issuing Bank,
times (z) a fraction the numerator of which is the number of days that elapse
during such period and the denominator of which is 360.  A certificate of the Issuing Bank submitted
to any Letter of Credit Participant with respect to any amounts owing under
this subsection shall be conclusive in the absence of manifest error.

(iii)          Whenever,
at any time after the Issuing Bank has made payment under any Letter of Credit
and has received from any Letter of Credit Participant its pro rata
share of such payment in accordance with subsection 2.4(c)(i), the Issuing Bank
receives any payment related to such Letter of Credit (whether directly from
the Borrower or otherwise, including by way of set-off or proceeds of
collateral applied thereto by the Issuing Bank), or any payment of interest on
account thereof, the Issuing Bank will distribute to such Letter of Credit
Participant its pro rata share thereof; provided, however,
that in the event that any such payment received by the Issuing Bank shall be
required to be returned by the Issuing Bank, such Letter of Credit Participant
shall return to the Issuing Bank the portion thereof previously distributed by
the Issuing Bank to it.

(d)           (i)            The Borrower agrees to
reimburse the Issuing Bank in respect of a Letter of Credit (including an
Existing Letter of Credit) on each date on which a draft presented under such
Letter of Credit is paid by the Issuing Bank for the amount of (a) such draft
so paid and (b) any taxes, fees, charges or other costs or expenses
incurred by the Issuing Bank in connection with such payment.  Each such payment shall be made to the Issuing
Bank in immediately available funds.  Notwithstanding
any other provisions of this Agreement, unless other acceptable arrangements
for the immediate reimbursement by the Borrower of amounts required to be
advanced by the Issuing Bank pursuant to a Letter of Credit have been made by
the Borrower and the Issuing Bank and such reimbursement is made by the
Borrower, any and all amounts which the Issuing Bank is required to advance
pursuant to a Letter of Credit shall, at the option of the Issuing Bank,
become, at the time the amounts are advanced, Revolving Credit Loans from the
Revolving Credit Lenders made as a Base Rate Borrowing.  The Administrative Agent will notify the
Revolving Credit Lenders of the amount required to be advanced pursuant to the
Letters of Credit.  Before
10:00 A.M. (Philadelphia time) on the date of any advance the Revolving
Credit Lenders are required to make pursuant to the Letters of Credit, each
Revolving Credit Lender shall make available to the Administrative Agent such
Revolving Credit Lender’s Revolving Credit Commitment Percentage of such
advance in immediately available funds.

(ii)           Interest
shall be payable on any and all amounts remaining unpaid by the Borrower under
this subsection from the date such amounts become payable (whether at stated
maturity, by acceleration or otherwise) until payment in full at the per annum
rate of the then applicable Default Rate for Revolving Credit Loans which are
Base Rate Loans and shall be payable on demand by the Issuing Bank.

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(e)           (i)            The Borrower also
agrees with the Issuing Bank that the Issuing Bank shall not be responsible
for, and the Borrower’s Reimbursement Obligations under subsection 2.4(d)(i)
shall not be affected by, among other things (x) the validity or genuineness of
documents or of any endorsements thereon, even though such documents shall in
fact prove to be invalid, fraudulent or forged, provided, that reliance
upon such documents by the Issuing Bank shall not have constituted gross
negligence or willful misconduct of the Issuing Bank or (y) any dispute
between or among the Borrower and any beneficiary of any Letter of Credit or
any other party to which such Letter of Credit may be transferred or (z) any
claims whatsoever of the Borrower against any beneficiary of such Letter of
Credit or any such transferee.

(ii)           The
Issuing Bank shall not be liable for any error, omission, interruption or delay
in transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit, except for errors or
omissions caused by the Issuing Bank’s gross negligence or willful misconduct.

(iii)          The
Borrower agrees that any action taken or omitted by the Issuing Bank under or
in connection with any Letter of Credit or the related drafts or documents, if
done in the absence of gross negligence or willful misconduct, shall be binding
on the Borrower and shall not result in any liability of the Issuing Bank to
the Borrower.

(f)            If
any draft shall be presented for payment to the Issuing Bank under any Letter
of Credit, the Issuing Bank shall promptly notify the Borrower of the date and
amount thereof.  The responsibility of
the Issuing Bank to the Borrower in connection with any draft presented for
payment under any Letter of Credit shall, in addition to any payment obligation
expressly provided for in such Letter of Credit and any other obligation
expressly imposed by the provisions of the Uniform Customs and Practice for
Documentary Credits, 1993 Revision, International Chamber of Commerce
Publication No. 500 (“Publication 500”) other than Article 48(g)
thereof, be limited to determining that the documents (including each draft)
delivered under such Letter of Credit in connection with such presentment are
in conformity with such Letter of Credit.

(g)           To
the extent that any provision of any Application related to any Letter of
Credit is inconsistent with the provisions of this Agreement, the provisions of
this Agreement shall govern.

(h)           Subject
to subsection 2.4(g) above, the Borrower agrees to be bound by the terms of
each Application and the Issuing Bank’s written regulations and customary
practices relating to letters of credit, though such interpretation may be
different from the Borrower’s own.  It is
understood and agreed that, except in the case of gross negligence or willful
misconduct, the Issuing Bank shall not be liable for any error, negligence
and/or mistakes, whether of omission or commission, in following the Borrower’s
instructions or those contained in the Letters of Credit or any modifications,
amendments or supplements thereto.  To the
extent not otherwise inconsistent with this Agreement, the provisions of
Publication 500 are hereby made a part of this Agreement with respect to the
obligations in connection with each Letter of Credit.

 31
 

 

(i)            Each
Revolving Credit Lender’s payment obligation under subsection 2.4(c) and the
Reimbursement Obligations shall be absolute, unconditional and irrevocable
under any circumstances, and shall be performed strictly in accordance with the
terms of this Section 2.4 under all circumstances, including the following
circumstances:

(i)            any set-off,
counterclaim, recoupment, defense or other right which such Revolving Credit
Lender may have against the Issuing Bank, any Loan Party or any other Person
for any reason whatsoever;

(ii)           any lack of validity or
enforceability of any Letter of Credit;

(iii)          the existence of any
claim, set-off, defense or other right which any Loan Party or any Revolving
Credit Lender may have at any time against a beneficiary or any transferee of
any Letter of Credit (or any Persons for whom any such transferee may be
acting), the Issuing Bank or any Revolving Credit Lender or any other Person,
whether in connection with this Agreement, the transactions contemplated herein
or any unrelated transaction (including any underlying transaction between any
Loan Party and the beneficiary for which any Letter of Credit was procured);

(iv)          any draft, demand,
certificate or other document presented under any 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 even if the Issuing Bank has
been notified thereof;

(v)           payment by the Issuing
Bank under any Letter of Credit against presentation of a demand, draft or
certificate or other document which does not comply with the terms of such
Letter of Credit, provided that such payment shall not have constituted gross
negligence or willful misconduct on the part of the Issuing Bank;

(vi)          any adverse change in
the business, operations, properties, assets, condition (financial or
otherwise) or prospects of the Parent, the Borrower and their Subsidiaries;

(vii)         any breach of this
Agreement or any other Loan Document by any Loan Party;

(viii)        the occurrence or
continuance of an insolvency proceeding with respect to any Loan Party;

(ix)           the fact that an Event
of Default or a Default shall have occurred and be continuing;

(x)            the fact that the
Revolving Credit Termination Date shall have passed or this Agreement or the
Revolving Credit Commitments hereunder shall have been terminated; and

 32
 

 

(xi)           any other circumstance
or happening whatsoever, whether or not similar to any of the foregoing.

(j)            In
addition to amounts payable as provided in Section 9.5, the Borrower
hereby agrees to protect, indemnify, pay and save harmless the Issuing Bank,
the Agents and the Lenders from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including reasonable
fees, expenses and disbursements of counsel) which the Issuing Bank or the
Lenders may incur or be subject to as a consequence, direct or indirect, of
(i) the issuance of any Letter of Credit, other than as a result of
(A) the gross negligence or willful misconduct of the Issuing Bank as
determined by a final judgment of a court of competent jurisdiction or
(B) subject to the following clause (ii), the wrongful dishonor by the
Issuing Bank of a proper demand for payment made under any Letter of Credit, or
(ii) the failure of the Issuing Bank to honor a drawing under any such Letter
of Credit as a result of any act or omission, whether rightful or wrongful, of
any present or future de jure or de facto government or governmental
authority (all such acts or omissions herein called “Governmental Acts”).

(k)           As
among the Borrower and the Issuing Bank, the Borrower assumes all risks of the
acts and omissions of, or misuse of the Letters of Credit by, the respective
beneficiaries of such Letters of Credit. 
In furtherance and not in limitation of the foregoing, the Issuing Bank
shall not be responsible for: 
(i) the form, validity, sufficiency, accuracy, genuineness or legal
effect of any document submitted by any party in connection with the
application for an issuance of any such Letter of Credit, even if it should in
fact prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged (even if the Issuing Bank shall have been notified
thereof); (ii) the validity or sufficiency of any instrument transferring
or assigning or purporting to transfer or assign any such Letter of Credit or
the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason; (iii) the
failure of the beneficiary of any such Letter of Credit, or any other party to
which such Letter of Credit may be transferred, to comply fully with any
conditions required in order to draw upon such Letter of Credit or any other
claim of any Loan Party against any beneficiary of such Letter of Credit, or
any such transferee, or any dispute between or among any Loan Party and any
beneficiary of any Letter of Credit or any such transferee; (iv) errors,
omissions, interruptions or delays in transmission or delivery of any messages,
by mail, facsimile, cable, telex or otherwise; (v) errors in
interpretation of technical terms; (vi) any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences
arising from causes beyond the control of the Issuing Bank, including any
Governmental Acts, and none of the above shall affect or impair, or prevent the
vesting of, any of the Issuing Bank’s rights or powers hereunder.

In furtherance and extension and not in limitation of the specific
provisions set forth above, any action taken or omitted by the Issuing Bank
under or in connection with the Letters of Credit issued by it or any documents
and certificates delivered thereunder, if taken or omitted in good faith, shall
not create any liability of the Issuing Bank to the Borrower or any Lender.

 33
 

 

(l)            Notwithstanding
anything to the contrary herein, the Existing Letters of Credit shall be
considered Letters of Credit issued hereunder.

2.5           Interest and Payment
Dates.  (a)  Subject to the provisions of Section 2.6,
each Base Rate Loan 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) at a
rate per annum equal to the Base Rate plus the Applicable Margin.

(b)           Subject
to the provisions of Section 2.6, each Eurodollar Loan 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 Eurodollar Rate for the
Interest Period in effect for such Loan plus the Applicable Margin.

(c)           Interest
on each Loan shall be payable on each Interest Payment Date applicable to such
Loan; provided that, interest accruing on
overdue amounts pursuant to Section 2.6 shall be payable on demand as provided
in such Section.  The Eurodollar Rate and
the Base Rate shall be determined by the Administrative Agent, and such determination
shall be conclusive absent error.

2.6           Default Interest.  To the extent not contrary to any Requirement
of Law, upon the occurrence and during the continuation of an Event of Default,
any principal, past due interest, fee or other amount outstanding hereunder shall
bear interest for each day thereafter until paid in full (after as well as
before judgment) at a rate per annum which shall be equal to two percent (2%)
in excess of the rate which would otherwise be in effect for Base Rate Loans
(such rate being referred to as the “Default Rate”); provided that, with
respect to Eurodollar Loans, such rate shall be the higher of the Default Rate
and two percent (2%) in excess of the rate which would otherwise be applicable
to such Eurodollar Loan.  The Borrower
acknowledges that such increased interest rate reflects, among other things,
the fact that such loans or other amounts have become a substantially greater
risk given their default status and that the Lenders are entitled to additional
compensation for such risk.

2.7           Conversion and
Continuation Options; Limitations on Tranches.  (a) 
The Borrower shall have the right at any time upon prior irrevocable
notice to the Administrative Agent (a) not later than 10:30 a.m.,
Philadelphia time, on the Business Day of conversion, to convert any Eurodollar
Loan to a Base Rate Loan, (b) not later than 10:30 a.m., Philadelphia
time, three (3) Business Days prior to conversion or continuation (x) to
convert any Base Rate Loan into a Eurodollar Loan, or (y) to continue any
Eurodollar Loan as a Eurodollar Loan for any additional Interest Period and (c)
not later than 10:30 a.m., Philadelphia time, three (3) Business Days
prior to conversion, to convert the Interest Period with respect to any
Eurodollar Loan to another permissible Interest Period, subject in each case to
the following:

(A)          a
Eurodollar Loan may not be converted at a time other than the last day of the
Interest Period applicable thereto;

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

 34
 

 

(C)           no
Eurodollar Loan may be continued as such and no Base Rate Loan may be converted
to a Eurodollar Loan when any Default or Event of Default has occurred and is
continuing;

(D)          any
portion of a Eurodollar Loan that cannot be converted into or continued as a
Eurodollar Loan by reason of clauses (B) or (C) above automatically shall be
converted at the end of the Interest Period in effect for such Loan to a Base
Rate Loan;

(E)           if
by the third Business Day prior to the last day of any Interest Period for
Eurodollar Loans the Borrower has failed to give notice of conversion or
continuation as described in this subsection, the Administrative Agent shall
give notice thereof to the Lenders and such Loans shall be automatically
converted to Base Rate Loans on the last day of such then expiring Interest
Period;

(F)           all
conversions and continuations of Loans hereunder and all selections of Interest
Periods hereunder shall be in such amounts and be made pursuant to such
elections that, after giving effect thereto, the aggregate principal amount of
the Loans comprising each Tranche of Eurodollar Loans shall be equal to
$500,000 or in increments of $500,000 in excess thereof; and

(G)           the
Borrower shall not have outstanding at any one time more than six (6) Tranches
in the aggregate of Eurodollar Loans.

Each request by the Borrower to convert (but not continue) a Loan shall
constitute a representation and warranty that each of the representations and
warranties made by the Borrower herein is true and correct in all material
respects on and as of such date as if made on and as of such date (except to
the extent that such representations and warranties relate expressly to an
earlier date, in which case such request shall constitute a representation and
warranty that such representations and warranties are true and correct as of
such date).  Accrued interest on a Loan
(or portion thereof) being converted shall be paid by the Borrower at the time
of conversion.

(b)           In the event, and on each occasion, that on
the day two (2) Business Days prior to the commencement of any Interest
Period for a Eurodollar Loan, the Administrative Agent shall have determined
(which determination absent manifest error shall be conclusive and binding upon
the Borrower) that dollar deposits in the principal amount of such Eurodollar
Loan are not generally available in the London Interbank Market, or that the
rate at which such dollar deposits are being offered will not adequately and
fairly reflect the cost to the applicable Lenders of making or maintaining the
principal amount of such Eurodollar Loan during such Interest Period, or that
reasonable means do not exist for ascertaining the Eurodollar Base Rate, the
Administrative Agent shall, as soon as practicable thereafter, give written or
telephonic notice of such determination to the Borrower and the applicable
Lenders, and any request by the Borrower for a Eurodollar Loan or for
conversion to or maintenance of a Eurodollar Loan pursuant to the terms of this
Agreement shall be deemed a request for a Base Rate Loan.  After such notice shall have been given and
until the circumstances giving rise to such notice no longer exist, each
request for a Eurodollar Loan shall be deemed to be a request

 35
 

 

for a Base
Rate Loan.  Each determination by the
Administrative Agent hereunder shall be conclusive absent manifest error.

2.8           Fees.

(a)           Commitment
Fees.  The Borrower agrees to pay to
the Administrative Agent for the account of each Revolving Credit Lender, on
each January 1, April 1, July 1 and October 1, commencing
January 1, 2007, during the Revolving Credit Commitment Period and on the
date on which the Revolving Credit Commitments shall be permanently terminated
or reduced as provided herein, a revolving credit commitment fee (collectively,
the “Commitment Fees”) at a rate per annum equal to the Applicable
Commitment Fee Percentage in effect from time to time on the average daily
amount of the Unused Revolving Credit Commitments of each Revolving Credit
Lender during the preceding fiscal quarter (or shorter period commencing with
the Closing Date or ending on the Revolving Credit Termination Date).  The Commitment Fees due to each Revolving
Credit Lender shall commence to accrue on the Closing Date and shall cease to
accrue on the Revolving Credit Termination Date.  The Administrative Agent shall distribute the
Commitment Fees among the Revolving Credit Lenders pro rata in accordance
with their respective Revolving Credit Commitment Percentages.

(b)           Administrative
Agent Fee.  The Borrower shall pay to
the Administrative Agent for its own account the administrative agency fees set
forth in the Fee Letter.

All of the foregoing fees shall be (a) computed on the basis of the
actual number of days elapsed in a year of 360 days, including the first day
but excluding the last day occurring in the period for which such fees are
payable, and (b) paid on the dates due, in immediately available funds, to the
Administrative Agent for distribution, as appropriate, to the applicable
Lenders and/or the Administrative Agent. 
Once paid, none of the foregoing fees shall be refundable under any
circumstances, except in the case of manifest error by the Administrative Agent
in the computation of any such amount, which error is raised in writing by the
Borrower to the Administrative Agent within twenty (20) days of payment of such
amount.

2.9           Termination and
Reduction of Revolving Credit Commitments. 
(a)  The Revolving Credit
Commitments shall be automatically terminated on the Revolving Credit
Termination Date whereupon the entire outstanding principal balance of the
Revolving Credit Loans, plus all accrued and unpaid interest thereon, and any
fees or other amounts owed under the Loan Documents in connection with the
Revolving Credit Facility (including all Commitment Fees and fees and other
amounts in connection with the Letters of Credit) shall be due and payable.

(b)           Upon
at least five (5) Business Days’ prior irrevocable written notice to the
Administrative Agent, the Borrower may at any time prior to the Revolving
Credit Termination Date, in whole permanently terminate, or from time to time
in part permanently reduce, the Revolving Credit Commitments; provided, however,
that (A) each partial reduction of such Revolving Credit Commitments shall
be in a minimum aggregate principal amount of $1,000,000 or in integral
multiples of $500,000 in excess thereof, and (B) the Revolving Credit

 36
 

 

Commitments
may not be reduced or terminated if, after giving effect thereto and to any prepayments
of the Revolving Credit Loans made on the effective date thereof, the aggregate
amount of the Revolving Credit Exposure of the Revolving Credit Lenders at such
time would exceed the aggregate Revolving Credit Commitments of the Revolving
Credit Lenders (as the same are being reduced) at such time.  Each reduction in the Revolving Credits
Commitments hereunder shall be made ratably among the Revolving Credit Lenders
in accordance with their respective Revolving Credit Commitment
Percentages.  The Borrower shall pay to
the Administrative Agent for the account of the Revolving Credit Lenders on the
date of each termination or reduction of the Revolving Credits Commitments, the
Commitment Fees on the amount of the Revolving Credit Commitments so terminated
or reduced accrued to the date of such termination or reduction.

2.10         Optional and Mandatory
Prepayments of Loans.  (a)  The Borrower shall have the right at any time
and from time to time to prepay any Borrowing, in whole or in part, without
premium or penalty (but in any event subject to Section 2.14), upon prior
written, telecopy or telephonic notice to the Administrative Agent given no
later than 10:30 a.m., Philadelphia time, (i) in the case of Base
Rate Loans, on the same day such prepayment is to be made, and (ii) in the
case of Eurodollar Loans, three (3) Business Days before any proposed
prepayment is to be made; provided, however, that each such partial prepayment
shall be in the principal amount of at least (A) $500,000 or in whole multiples
of $100,000 in the case of Base Rate Loans and (B) $500,000 or in whole
multiples of $500,000 in excess thereof in the case of Eurodollar Loans.

(b)           On
the date of any termination or reduction of the Revolving Credit Commitments
pursuant to Section 2.9, the Borrower shall pay or prepay so much of the
Revolving Credit Loans as shall be necessary in order that the aggregate
Revolving Credit Exposure of the Revolving Credit Lenders will not exceed the
aggregate Revolving Credit Commitments of the Revolving Credit Lenders after
giving effect to such termination or reduction.

(c)           In
the event of (i) any direct or indirect sale or other disposition of any of the
assets, including lines of business, of the Borrower or any Subsidiary (other
than sales or dispositions referred to in subsections 6.5(a), (b) or (c))
(each, an “Asset Sale”) the sale price for which in the aggregate with
all prior Asset Sales made since the date of this Agreement (but only those
Asset Sales the Net Proceeds of which were not applied as a prepayment as
hereinafter provided in this subsection 2.10(c)) is greater than $1,000,000,
(ii) any sale or issuance of Capital Stock by the Parent (other than
Capital Stock issued (x) to any seller in connection with a Permitted
Acquisition or (y) pursuant to any employee equity plan of the Parent, the
Borrower or their Subsidiaries), (iii) the incurrence of additional
Indebtedness for borrowed money by the Parent, the Borrower or any of their
Subsidiaries (other than Indebtedness incurred to a seller in connection with a
Permitted Acquisition or otherwise permitted under Section 6.2 (other than
Subordinated Debt under subsection (g) thereto unless such Subordinated Debt
was incurred in connection with financing a Permitted Acquisition)), (iv) a
BrassRing Escrow Event or (v) any Material Recovery Event, the Borrower
shall promptly prepay the outstanding Loans in an amount equal to one hundred
percent (100%) of the amount of the Net Proceeds of such Asset Sale, issuance
of Capital Stock, incurrence of additional Indebtedness, BrassRing Escrow Event
or Material Recovery Event; provided  that, the amount of

 37
 

 

any prepayment
hereunder shall be rounded down to the nearest multiple of $1,000; provided,
further, that no such repayment shall be required in respect of the
Net Proceeds arising from (x) an Asset Sale if, and to the extent, that the
Borrower or such Subsidiary has reinvested any such Net Proceeds arising from
such Asset Sale in productive assets of a kind then used or useable in the
business of the Borrower and its Subsidiaries (including Capital Expenditures)
prior to the date that is one hundred eighty days (180) after the date such
Asset Sale is closed or (y) a Material Recovery Event if, and to the extent
that, (I) the Borrower has notified the Administrative Agent in writing
within five (5) Business Days following the receipt of the proceeds of such
Material Recovery Event of the Borrower’s or its Subsidiary’s intention to use
such Net Proceeds for the repair, replacement or restoration of the damaged condemned
property within one hundred and eighty (180) days following the receipt of such
proceeds and (II) the Borrower or such Subsidiary does in fact reinvest such
Net Proceeds arising from such Material Recovery Event for the repair,
replacement or restoration of the damaged or condemned property prior to the
date that is one hundred eighty days (180) after the receipt of such Net
Proceeds.  At the time any such Asset
Sale, issuance of Capital Stock or incurrence of additional Indebtedness is
completed, or promptly after any Net Proceeds are received by the Parent or a
Subsidiary thereof in connection with a BrassRing Escrow Event or a Material
Recovery Event (and, if the Borrower has given notice of its intention to use
all or a portion of the Net Proceeds from a Material Recovery Event as provided
above, one hundred and eighty (180) days after its receipt of such Net
Proceeds), the Borrower shall deliver to the Administrative Agent an accounting
of the Net Proceeds in sufficient detail and form acceptable to the
Administrative Agent together with the amount of any prepayment or repayment
required at such time.  Payments made
pursuant to this subsection 2.10(c) shall be applied in accordance with
subsection 2.10(f) below.

(d)           Commencing
with the fiscal year ending December 31, 2007, the Borrower shall, within
two (2) Business Days after the delivery of the Parent’s financial statements
for such fiscal year required pursuant to Section 5.1(a), prepay the
outstanding Loans in an amount equal to fifty percent (50%) of the amount of
the Excess Cash Flow for such fiscal year. 
Payments pursuant to this subsection 2.10(d) shall be applied in
accordance with subsection 2.10(f) below.

(e)           Each
notice of prepayment pursuant to subsections (a) and (b) of this Section 2.10
shall specify (i) the prepayment date, (ii) the principal amount of each
Borrowing to be prepaid and (iii) in the case of prepayments pursuant to
subsection (a), to which Facility the prepayment is to be applied.  Each notice of prepayment shall be irrevocable
and shall commit the Borrower to prepay such Borrowing (or portion thereof) by
the amount stated therein.  Each
prepayment under the Term Loan Facility pursuant to subsections (a) and (b) of
this Section 2.10 shall be applied to the Term Loans in the inverse order of
maturity.  All prepayments under this
Section 2.10 on other than Base Rate Borrowings shall be accompanied by accrued
interest on the principal amount being prepaid to the date of prepayment and any
amounts owed under Section 2.14.

(f)            Payments
pursuant to clauses (c) and (d) of this Section 2.10 shall be applied first to
the Term Loans in the inverse order of maturity until paid in full and second
to Revolving Credit Loans until paid in full; provided  that, if
an Event of Default shall have occurred and be continuing, any such payments
shall be applied pro rata to the Loans and the Letter of Credit Obligations
(based on the principal amount of the Loans outstanding and the

 38
 

 

aggregate
amount of the Letter of Credit Obligations then outstanding), with any amounts
attributable to the Letter of Credit Obligations to be held by the
Administrative Agent in a cash collateral account pursuant to Section 7.2 or,
at the Administrative Agent’s discretion, applied to the Revolving Credit Loans
then outstanding.  Payments of the
Revolving Credit Loans and/or in respect of the Letter of Credit Obligations
shall not reduce the Revolving Credit Commitments.  To the extent any prepayments are required
pursuant to clauses (c) or (d) of this Section 2.10 after the Loans have been
paid in full, then, no such payments shall be required unless an Event of
Default shall have occurred and be continuing, in which case the Borrower shall
deliver to the Administrative Agent, to be held in a cash collateral account pursuant
to Section 7.2, an amount equal to the difference between (i) the Letter of
Credit Coverage Requirement and (ii) the amount of cash, if any, then held by
the Administrative Agent in a collateral account pursuant to Section 7.2, with
any remaining Net Proceeds to be applied first to any other outstanding
Obligations and next to be retained by the Parent, the Borrower or its
Subsidiary, as applicable.  So long as no
Event of Default shall have occurred and be continuing, unless otherwise
requested by the Borrower, each payment, to the extent consistent with its
application to the appropriate Facility, shall be applied first to Base Rate
Loans and next to Eurodollar Loans in the direct order of maturity of Interest
Periods.

2.11         Illegality.  Notwithstanding any other provision herein,
if any change in any Requirement of Law or in the interpretation or application
thereof shall make it unlawful for any Lender to make or maintain Eurodollar
Loans as contemplated by this Agreement, (a) the commitment of such Lender
hereunder to make Eurodollar Loans, continue Eurodollar Loans as such and
convert or refinance Base Rate Loans to Eurodollar Loans shall forthwith be
cancelled and (b) such Lender’s Loans then outstanding as Eurodollar Loans, if
any, shall be converted automatically to Base Rate Loans on the respective last
days of the then current Interest Periods with respect to such Loans or within
such earlier period as required by law. 
If any such conversion of a Eurodollar Loan occurs on a day which is not
the last day of the then current Interest Period with respect thereto, the
Borrower shall pay to such Lender such amounts, if any, as may be required
pursuant to Section 2.14.

2.12         Requirements of Law.  (a)  In
the event that any change in any Requirement of Law or in the interpretation,
or application thereof or compliance by any Lender with any request or
directive (whether or not having the force of law) from any central bank or
other Governmental Authority made subsequent to the date hereof:

(i)            shall
subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, any Note or any Eurodollar Loan made by it, or change the basis of
taxation of payments to such Lender in respect thereof (except for taxes
covered by Section 2.13 and changes in the rate of tax on the overall net
income, gross receipts or revenue of such Lender);

(ii)           shall
impose, modify or hold applicable any reserve, special deposit or similar
requirement against assets held by, deposits or other liabilities in or for the
account of, advances, loans or other extensions of credit by, or any other
acquisition of funds by, any office of such Lender which is not otherwise
included in the determination of the interest rate on such Eurodollar Loan
hereunder; or

 39
 

 

(iii)          shall
impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such
Lender, by an amount which such Lender deems to be material, of making,
converting into, continuing or maintaining Eurodollar Loans or to reduce any
amount receivable hereunder in respect thereof then, in any such case, the
Borrower shall as promptly as practicable pay such Lender, upon its demand, any
additional amounts necessary to compensate such Lender for such increased cost
or reduced amount receivable.  If any
Lender becomes entitled to claim any additional amounts pursuant to this
subsection, it shall as promptly as practicable notify the Borrower, through
the Administrative Agent, of the event by reason of which it has become so
entitled.  A certificate as to any
additional amounts payable pursuant to this subsection submitted by such
Lender, through the Administrative Agent, to the Borrower shall be conclusive
in the absence of manifest error.  This
covenant shall survive the termination of this Agreement and the payment of the
Notes and all other amounts payable hereunder. 
If any amount is refunded to such Lender, such Lender will reimburse the
Borrower for amounts paid in respect of the refunded amount without interest
(except to the extent of any interest actually received by such Lender from the
relevant Governmental Authority with respect to such refund).

(b)           In
the event that any Lender shall have determined that any change in any
Requirement of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether
or not having the force of law) from any Governmental Authority made subsequent
to the date hereof does or shall have the effect of reducing the rate of return
on such Lender’s or such corporation’s capital as a consequence of its
obligations hereunder to a level below that which such Lender or such
corporation could have achieved but for such change or compliance (taking into
consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, after submission as promptly as practicable by such Lender to the
Borrower (with a copy to the Administrative Agent) of a written request
therefor, the Borrower shall pay to such Lender such additional amount or
amounts as will compensate such Lender for such reduction.

(c)           Each
Lender agrees that it will use reasonable efforts in order to avoid or to
minimize, as the case may be, the payment by the Borrower of any additional
amount under subsections 2.12(a) and (b); provided, however, that
no Lender shall be obligated to incur any expense, cost or other amount in
connection with utilizing such reasonable efforts; provided, further,
that the Borrower shall not be under any obligation to compensate any Lender
under this Section 2.12 with respect to increased costs or reductions with
respect to any period prior to the date that is one hundred eighty (180) days
prior to such request if such Lender 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
any Law within such one hundred eighty (180) day period.

 40

 

2.13         Taxes.  (a) 
All payments made by the Borrower under this Agreement and the Notes
shall be made free and clear of, and without deduction or withholding for or on
account of, any present or future income, stamp or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority,
other than Excluded Taxes (all such non-excluded taxes, levies, imposts,
duties, charges, fees, deductions and withholdings being hereinafter called “Taxes”).  If any Taxes are required to be withheld from
any amounts payable to the Administrative Agent or any Lender hereunder or
under the Notes, the amounts so payable to the Administrative Agent or such
Lender shall be increased to the extent necessary to yield to the
Administrative Agent or such Lender (after payment of all Taxes) interest or
any such other amounts payable hereunder at the rates or in the amounts
specified in this Agreement and the Notes. 
Whenever any Taxes are payable by the Borrower, as promptly as possible
thereafter the Borrower shall send to the Administrative Agent for its own
account or for the account of such Lender, as the case may be, a certified copy
of an original official receipt received by the Borrower showing payment
thereof.  If the Borrower fails to pay
any Taxes when due to the appropriate taxing authority or fails to remit to the
Administrative Agent the required receipts or other required documentary
evidence, the Borrower shall indemnify the Administrative Agent and the Lenders
for any incremental taxes, interest or penalties that may become payable by the
Administrative Agent or any Lender as a result of any such failure.  The agreements in this subsection shall
survive the termination of this Agreement and the payment of the Notes and all
other amounts payable hereunder.

(b)           Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate. 
Each such Foreign Lender shall also deliver to the Borrower (with a copy
to the Administrative Agent) such further documentation on or before the date
that any documentation previously delivered to the Borrower hereunder shall
expire or become obsolete and after the occurrence of any event requiring a
change in such previously delivered documentation.

(c)           The
Borrower shall not be required to pay any additional amounts to the
Administrative Agent or any Lender in respect of payments of United States
withholding tax or other Taxes made by the Borrower which are consistent with
the forms and information delivered to the Borrower and the Administrative
Agent or if the payment of such amounts would not have arisen but for a failure
by the Administrative Agent or such Lender to comply with the requirements of
subsection 2.13(b) or the Administrative Agent or such Lender did not timely
deliver to the Borrower the forms listed or described in subsection 2.13(b) or
did not take such other steps as reasonably may be available to it under
applicable tax laws and any applicable tax treaty or convention to obtain an
exemption from, or reduction (to the lowest applicable rate) of, such United
States withholding tax and other Taxes or, if such steps were taken, the
information was not timely and duly delivered to the Borrower.

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2.14         Indemnity.  (a) 
The Borrower agrees to indemnify each Lender and to hold each Lender
harmless from any loss or expense which such Lender may sustain or incur as a
consequence of (a) default by the Borrower in payment when due of the principal
amount of or interest on any Eurodollar Loan, (b) default by the Borrower in
making a borrowing of, conversion into or continuation of Eurodollar Loans
after the Borrower has given a notice requesting the same in accordance with
the provisions of this Agreement, (c) default by the Borrower in making any
prepayment after the Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (d) the making of a prepayment of Eurodollar
Loans on a day which is not the last day of an Interest Period with respect
thereto, including, without limitation, in each case, any such loss or expense
arising from the reemployment of funds obtained by it or from fees payable to
terminate the deposits from which such funds were obtained.  A certificate as to any amounts (including a
calculation thereof) that a Lender is entitled to receive under this Section
2.14 submitted by such Lender, through the Administrative Agent, to the
Borrower shall be conclusive in the absence of clearly demonstrable error and
all such amounts shall be paid by the Borrower promptly upon demand by such
Lender.  This covenant shall survive the
termination of this Agreement and the payment of the Notes and all other
amounts payable hereunder.

(b)           For
the purpose of calculation of all amounts payable to a Lender under this
Section, each Lender shall be deemed to have actually funded its relevant
Eurodollar Loan through the purchase of a deposit bearing interest at the
Eurodollar Rate in an amount equal to the amount of that Eurodollar Loan and
having a maturity comparable to the relevant Interest Period or applicable
period for such Eurodollar Loan; provided, however, that each
Lender may fund each of its Eurodollar Loans in any manner it sees fit, and the
foregoing assumptions shall be utilized only for the calculation of amounts
payable under this subsection.  This
covenant shall survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.

2.15         Treatment of Loans and
Payments.  Except as provided under
Sections 2.4, 2.11, 2.13 or subsection 9.6(g), each Borrowing by the Borrower
hereunder, each payment or prepayment of principal of the Loans, each payment
of interest on the Loans, each payment of Commitment Fees and participation in
Letters of Credit shall be made pro rata among the relevant Lenders in
accordance with their respective Revolving Credit Commitment Percentage, Term
Loan Percentage or Total Percentage, as the case may be.  Each Lender agrees that in computing such Lender’s
portion of any borrowing to be made hereunder, the Administrative Agent may, in
its discretion, round each Lender’s amount of such borrowing to the next higher
or lower whole dollar amount.

2.16         Payments.  (a) 
The Borrower shall make each payment (including principal of or interest
on any Borrowing or any fees or other amounts) hereunder not later than 12:00
(noon), Philadelphia time, on the date when due to the Administrative Agent at
its offices set forth in Section 9.2, in immediately available funds.  Such payments shall be made without setoff or
counterclaim of any kind.  The
Administrative Agent shall distribute to the Lenders any payments received by
the Administrative Agent for their account promptly upon receipt in like funds
as received, provided that, any payment received by the Administrative Agent
for the account of the Lenders at or before 2:00 p.m. Pennsylvania time
will be distributed to the

 42
 

 

Lenders on the same Business Day and any such payment
received after that time on a given day will be distributed on the next
Business Day.

(b)           Whenever
any payment hereunder or under the Notes shall be stated to be due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the
computation of the payment of interest or fees, as the case may be, provided
that if such extension would cause payment of any interest on or principal of
the Loans or payment of any commitment fees to be made in the next following
calendar month, such payment shall be made on the immediately preceding
Business Day.

(c)           In
the event that any payment of principal, interest or commitment fees due the
Lenders or the Administrative Agent under any of the Loan Documents is not paid
when due, the Administrative Agent is hereby authorized to effect such payment
upon prior notice to the Borrower by
debiting any demand deposit account of the Borrower now or in the future
maintained with the Administrative Agent. 
This right of debiting accounts of the Borrower is in addition to any
right of setoff accorded the Lenders hereunder or by operation of law.

2.17         Loan Accounts.  Each Lender shall open and maintain on its
books a loan account in the Borrower’s name with respect to Loans made,
repayments, prepayments, the computation and payment of interest and other
amounts due and sums paid to such Lender hereunder and under the Loan
Documents.  Except in the case of
manifest error in computation, such records shall be presumed correct as to the
amount at any time due to such Lender from the Borrower.  The failure of any Lender to make an entry in
its loan account shall not abrogate the Borrower’s duty to repay the
Indebtedness and other amounts owed to such Lender under the Loan Documents.

2.18         Assignment of Loans
and/or Revolving Credit Commitments Under Certain Circumstances; Duty to
Mitigate.  In the event (a) any
Lender delivers a notice pursuant to Section 2.11 that it has become unlawful
for such Lender to make or maintain Eurodollar Loans, (b) any Lender delivers a
certificate requesting compensation pursuant to Section 2.12 or (c) the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority on account of any Lender pursuant to Section 2.13, the
Borrower may, at its sole expense and effort (including with respect to the
processing and recordation fee referred to in subsection 9.6(b)), upon notice
to such Lender and the Administrative Agent, require such Lender to transfer
and assign, without recourse (in accordance with and subject to the restrictions
contained in Section 9.6), all of its interests, rights and obligations under
this Agreement to a Purchasing Lender that shall assume such assigned
obligations (which Purchasing Lender may be another Lender, if a Lender accepts
such assignment); provided that (i) such assignment shall not
conflict with any law, rule or regulation or order of any court or other
Governmental Authority having jurisdiction, (ii) the Borrower shall have
received the prior written consent of the Administrative Agent (and, if a
Revolving Credit Commitment or Revolving Credit Loans are being assigned, the
consent of the Issuing Bank), which consent(s) shall not be unreasonably
delayed or withheld, (iii) the Borrower or such Purchasing Lender shall have
paid to the affected Lender 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, plus all fees (including,

 43
 

 

without limitation, Commitment Fees) and other amounts
accrued hereunder for the account of such Lender (including, without
limitation, amounts owing under Sections 2.12, 2.13 and 2.14) and (iv) to the
extent such affected Lender is also the Issuing Bank, (A) the Borrower or such
Purchasing Lender  shall have paid to the
Issuing Bank all L/C Disbursements, plus all
fees (including, without limitation, Letter of Credit Fees) and other amounts
accrued hereunder for the account of the Issuing Bank and (B) the Borrower
shall have either (I) returned to the Issuing Bank the original of any
outstanding Letters of Credit or (II) delivered to the Issuing Bank cash
collateral for any such outstanding Letters of Credit in an amount equal to the
Letter of Credit Coverage Requirement for each such Letter of Credit the
original of which is not returned to the Issuing Bank.  Each Lender hereby grants to the
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 Assumption necessary to effectuate any assignment of such
Lender’s interests hereunder in the circumstances contemplated by this
Section 2.18.

2.19         Use of Proceeds.  The proceeds of the Loans may be used by the
Borrower for its working capital, capital expenditures and general corporate
purposes in the ordinary course of business (including paying off the
Indebtedness under the Existing Credit Agreement and paying the fees and
expenses associated with the Loan Documents) and to finance all or a portion of
the purchase price and transaction costs in connection with the BrassRing
Acquisition and other Permitted Acquisitions. 
The Letters of Credit shall be letters of credit required in the
ordinary course of the Borrower’s business or in connection with Permitted Acquisitions.

SECTION
3.  REPRESENTATIONS AND WARRANTIES

To induce the Administrative Agent, the Lenders and the Issuing Bank to
enter into this Agreement and to make the Loans and to issue and/or participate
in Letters of Credit, the Borrower hereby represents and warrants to the
Administrative Agent and each Lender that:

3.1           Corporate Existence.  Each of the Borrower and the other Loan
Parties is duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization, and is duly qualified or licensed to
do business and is in good standing in all other jurisdictions in which the
character of the properties owned or the nature of the activities conducted by
it makes such qualification or licensing necessary, except where the failure to
be so qualified would not reasonably be expected to have a Material Adverse
Effect.

3.2           Subsidiaries.  The Subsidiaries of the Parent and the record
ownership of each such Subsidiary on the date hereof are listed on Schedule
3.2 attached hereto.

3.3           Authority and
Binding Effect.  Each of the Borrower
and the other Loan Parties has all requisite power and authority, corporate and
otherwise, to own, lease, encumber and operate its properties and assets and to
carry on its business as now being conducted and to enter into and to perform
its obligations under this Agreement, the Notes and the other Loan Documents to
which it is a party and to fulfill its obligations set forth herein and
therein.  The execution, delivery and
performance of this Agreement, the borrowings hereunder and the execution and
delivery of the Notes, the Applications and the other Loan Documents to which
the Borrower or any other Loan Party is a party have been duly authorized by
all requisite corporate action and will not violate or constitute a default
under any Requirement of Law, or of

 44
 

 

any indenture, note, loan or credit agreement, license
or any other agreement, lease or instrument to which the Parent or any of its
Subsidiaries is a party or by which the Parent or any of its Subsidiaries or
any of its or their Properties are bound. 
This Agreement and the other Loan Documents have each been duly executed
and delivered by each Loan Party party thereto. 
This Agreement constitutes, and the Notes and other Loan Documents issued
or to be issued hereunder, when executed and delivered pursuant hereto, will
constitute, the authorized, valid and legally binding obligations of the
Borrower or other Loan Party party thereto enforceable in accordance with their
respective terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other laws or equitable principles from time to
time in effect relating to or affecting the rights of creditors generally.

3.4           Approvals.  No consent or approval of any trustee or
holder of any indebtedness, nor any authorization, consent, approval, license,
exemption of or registration, declaration or filing with any court or
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, is or will be necessary to the valid execution and
delivery of this Agreement, the Notes or the other Loan Documents or the
consummation by the Borrower or the other Loan Parties of the transactions
contemplated by this Agreement, except such as have been obtained.

3.5           Recording and
Enforceability.  No recording,
filing, registration, notice or other similar action is required in order to
insure the legality, validity, binding effect or enforceability of this
Agreement, the Notes or the other Loan Documents as against the Borrower and
any other Loan Party.

3.6           Litigation.  Schedule 3.6 attached hereto contains
a list as of the date hereof of all litigation, claims, disputes, assessments,
judgments, judicial and administrative orders outstanding against the Parent or
any of its Subsidiaries and any actions, suits or proceedings at law or in
equity or by or before any governmental or administrative instrumentality or
other agency pending or, to the knowledge of the Borrower, threatened against
the Parent or any of its Subsidiaries or affecting its or their property or
rights which in any such case if decided adversely individually or in the
aggregate would reasonably be expected to have a Material Adverse Effect.  Neither the Parent nor any Subsidiary is in
default under any applicable statute, rule, order, certificate or regulation of
any Governmental Authority having jurisdiction over the Parent or any
Subsidiary thereof which default would reasonably be expected to have a
Material Adverse Effect.  No litigation, investigation
or proceeding of or before any arbitrator or Governmental Authority is pending
or, to the knowledge of the Borrower, threatened against the Borrower, any
other Loan Party or any of its or their respective Subsidiaries or against any
of its or their respective business, operations, properties, prospects or
condition (financial or otherwise) (a) with respect to this Agreement, the
Notes, the other Loan Documents or any of the transactions contemplated hereby,
or (b) as to which there is a reasonable likelihood of an adverse determination
and which, if adversely determined, would reasonably be expected to have a
Material Adverse Effect.

3.7           Financial
Information.  The Borrower has
delivered to the Administrative Agent true, correct and complete copies of the
Parent’s audited balance sheet as of December 31, 2005 and statements of profit
and loss and surplus for the year then ended which have been certified by BDO
Seidman, LLP and the Parent’s unaudited
internally prepared balance sheet as

 45
 

 

of June 30, 2006 and statements of profit and
loss and surplus for the quarter then ended. 
All such financial statements have been prepared in accordance with
GAAP, except for the absence of footnotes and subject to year-end adjustments
in the unaudited financial statements, and are true and complete and present
fairly in accordance with GAAP, the financial condition and results of
operations of the Parent and its Subsidiaries as of such dates and for the
periods covered thereby, and said balance sheets accurately reflect all
liabilities, including contingent liabilities that are required by GAAP to be
reflected thereon as of the dates thereof. 
Since June 30, 2006, there has been no development or event nor any
prospective development or event which individually or in the aggregate would
reasonably be expected to have a Material Adverse Effect.

3.8           Taxes.  Each of the Parent and its Subsidiaries has
filed all federal, state and local tax returns which it is required by law to
file, subject to the timely filing of any extension therefor, and has paid all
material taxes, assessments and other governmental charges due in respect of
such returns, except to the extent that any such taxes, assessments or other
governmental charges are being contested in good faith and as to which the
Parent or such Subsidiary has set aside on its books adequate reserves.  No federal tax Lien has been filed against
the Parent or any of its Subsidiaries.

3.9           Intellectual
Property.  Each of the Borrower and
the other Loan Parties owns, or is licensed to use, all trademarks, tradenames,
copyrights, technology, know-how and processes necessary for the conduct of its
business as currently conducted (the “Intellectual Property”) except for
those as to which the failure to own or license would not reasonably be
expected to have a Material Adverse Effect. 
As of the date hereof, no claim has been asserted against the Parent or
any Subsidiary and is pending by any Person challenging or questioning the use
of any such Intellectual Property, nor to the Borrower’s knowledge, is any such
claim threatened and, with respect to any time thereafter, no such claim has
been asserted which would reasonably be expected to have a Material Adverse
Effect.  To the Borrower’s knowledge, the
use of such Intellectual Property by the Borrower and the other Loan Parties
does not infringe the rights of any Person, except for such claims and
infringements that, in the aggregate, would not reasonably be expected to have
such a Material Adverse Effect.

3.10         Intentionally Omitted.

3.11         Material Agreements.  As of the date hereof, Schedule 3.11
attached hereto contains a list of all of the Parent’s and its Subsidiaries’
material leases, contracts, agreements, understandings and commitments of any
kind the breach of which would directly or indirectly reasonably be expected to
have a Material Adverse Effect and all parties (including the Parent and its
Subsidiaries) to all such material leases, contracts, agreements,
understandings and commitments have to the Borrower’s knowledge complied with
the provisions thereof in all material respects and neither the Parent nor any
of its Subsidiaries is in material default under any provision thereof and to
the knowledge of the Borrower (i) no other party thereto is in default
under any material provision thereof and (ii) no event has occurred which,
but for the giving of notice or the passage of time, or both, would constitute
a material default thereunder.

3.12         Compliance With Law.  Each of the Parent and its Subsidiaries is in
compliance with all Requirements of Law except to the extent that the failure
to comply

 46
 

 

therewith would not in the aggregate reasonably be
expected to have a Material Adverse Effect. 
As of the date hereof, no Loan Party has received any written notice,
not heretofore complied with, from any federal, state or local authority or any
insurance or inspection body to the effect that any of its properties,
facilities, equipment or business procedures or practices fail to materially
comply with any applicable law, ordinance, regulation, building or zoning law,
or any other requirements of any such authority or body, except where such
failure would not reasonably be expected to have a Material Adverse Effect.

3.13         Title to Property.  Each of the Parent and its Subsidiaries has good
title to or valid leasehold interests in or license to use or similar interests
in all personal properties, assets and other rights which it purports to own or
lease or which is reflected as owned or leased on its respective books and
records (except where failure to have good title to, or valid leasehold or
similar interests in, would not reasonably be expected to have a Material
Adverse Effect), free and clear of all Liens except Permitted Liens, and
subject to the terms and conditions of the applicable leases.  Except for financing statements evidencing
Permitted Liens or protective filings related to operating leases or other
assets in the possession of, but not owned by, the Parent or any of its
Subsidiaries, no effective financing statement under the Uniform Commercial
Code is in effect in any jurisdiction and no other filing which names the
Parent or any of its Subsidiaries as debtor or which covers or purports to
cover any of the assets of the Parent or any of its Subsidiaries is currently
effective and on file in any state or other jurisdiction.  All of the assets and properties of the
Parent and its Subsidiaries that are necessary for the operation of their
respective businesses are in good working condition and are able to serve the
functions for which they are currently being used, except for ordinary wear and
tear.

3.14         Security Interests.  At all times after execution and delivery of
the Security Documents by the Loan Party or Loan Parties party thereto and
completion of the filings and recordings (to the extent not already filed and
recorded prior to the Closing Date) in the jurisdictions listed on Schedule
3.14, and delivery to the Administrative Agent of possession or control, as
applicable, of all Collateral the perfection of a security interest in which
requires possession or control under the Uniform Commercial Code, the security
interests created for the benefit of the Administrative Agent and the Lenders
pursuant to the Security Documents will constitute valid, perfected security
interests in the Collateral subject thereto, subject to no other Liens
whatsoever, except Permitted Liens.

3.15         Federal Regulations.  No part of the proceeds of any Loans will be
used for “purchasing” or “carrying” any “margin stock” within the respective
meanings of each of the quoted terms under Regulation U or for any purpose
which violates the provisions of Regulation U or any other Regulations of
the Board of Governors of the Federal Reserve System.  If requested by any Lender or the
Administrative Agent, the Borrower will furnish to the Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form U-l referred to in said Regulation U.  No part of the proceeds of the Loans
hereunder will be used for any purpose which violates, or which is inconsistent
with, the provisions of any of Regulations D, T, U and X.

3.16         ERISA.  Except as specifically disclosed on Schedule
3.16 to this Agreement:  (a) there is
no Accumulated Funding Deficiency with respect to any Employee Pension Plan,
(b) no Reportable Event (excluding those for which notice has been waived by
the

 47
 

 

PBGC) has occurred with respect to any Employee
Pension Plan, (c) neither the Parent nor any Commonly Controlled Entity has
incurred Withdrawal Liability with respect to any Multiemployer Plan, and (d)
no Multiemployer Plan is in Reorganization. 
No liability (whether or not such liability is being litigated) in
excess of $250,000 has been asserted against the Parent or any Commonly
Controlled Entity in connection with any Employee Pension Plan or any
Multiemployer Plan by the PBGC, by a trustee appointed pursuant to Section
4042(b) or (c) of ERISA, or by a sponsor or an agent of a sponsor of a
Multiemployer Plan, and no Lien has been attached and no Person has, to the
Borrower’s knowledge, threatened to attach a Lien on any of the Parent’s or any
Commonly Controlled Entity’s property as a result of failure to comply with
ERISA or as a result of the termination of any Employee Pension Plan.  Each Employee Pension Plan, as most recently
amended, including amendments to any trust agreement, group annuity or
insurance contract, or other governing instrument, is the subject of a
favorable determination by the Internal Revenue Service with respect to its qualification
under Section 401(a) of the Code, and
to the knowledge of the Borrower, no amendment adopted after such determination
negatively affects the qualification of such Plan.  Neither the Parent nor any Commonly
Controlled Entity has an unfulfilled obligation to contribute to any
Multiemployer Plan.

3.17         Fictitious Names.  Neither the Parent nor its Subsidiaries
operate or do business under any assumed, trade or fictitious names, other than
as listed on Schedule 3.17, or if after the date hereof, disclosed to
the Administrative Agent in writing.

3.18         No Event of Default.  No Default or Event of Default has occurred
and is continuing.

3.19         Solvency.  Each of the Parent and its Subsidiaries is,
and after receipt and application of any Loans hereunder, including the initial
Loans will be, Solvent.

3.20         Investment Company Act.  Neither the Parent, the Borrower nor any
Subsidiary thereof is an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended.

3.21         Environmental Matters.  Except to the extent that all of the
following would not reasonably be expected to have a Material Adverse Effect:

(a)           The
Properties do not contain, and have not previously contained, in, on, or under,
including, without limitation, the soil and groundwater thereunder, any
Materials of Environmental Concern in amounts or concentrations that constitute
or constituted a violation of, or reasonably would reasonably be expected to
give rise to liability under Environmental Laws.

(b)           The
Properties and all operations and facilities at the Properties are in
compliance, and have in the last five years been in compliance with all
Environmental Laws, and there is no contamination at, under or about the
Properties or violation of any Environmental Law with respect to the Properties
or the business operated by the Parent and its Subsidiaries which would
reasonably be expected to interfere with the continued operation of any of the
Properties or impair the fair saleable value of any thereof.  Neither the Parent nor any Subsidiary has
assumed any liability of any Person under Environmental Laws.

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(c)           Neither
the Parent nor any Subsidiary has received nor is it aware of any claim, notice
of violation, alleged violation, non-compliance, investigation or advisory
action or potential liability regarding environmental matters or compliance of
Environmental Law with regard to the Properties which has not been
satisfactorily resolved by the Parent or its Subsidiary and neither the Parent
nor any Subsidiary is aware and has no reason to believe that any such action
is being contemplated, considered or threatened.

(d)           Materials
of Environmental Concern have not been generated, treated, stored, transported,
disposed of, at, on, from or under any of the Properties by the Parent or any
of its Subsidiaries, nor have any Materials of Environmental Concern been
transferred by the Parent or any of its Subsidiaries from the Properties to any
other location except in either case in the ordinary course of business of the
Parent and its Subsidiaries in compliance with all Environmental Laws and such
that it would not reasonably be expected to give rise to liability under any
applicable Environmental Law.

(e)           There
are no governmental, administrative actions or judicial proceedings pending or,
to the best knowledge of the Borrower, contemplated or threatened under any
Environmental Laws to which the Parent or any of its Subsidiaries is or will be
named as a party with respect to the Properties, nor are there any consent
decrees or other decrees, consent orders, administrative orders or other
orders, or other administrative or judicial requirements outstanding under any
Environmental Law with respect to any of the Properties.

3.22         Labor Matters.  Except as set forth on Schedule 3.22,
as of the Closing Date, there are no collective bargaining agreements or
Multiemployer Plans covering the employees of the Parent or its Subsidiaries,
and neither the Parent nor its Subsidiaries has suffered any strikes, walkouts,
work stoppages or other material labor difficulty within the last five years
and to the knowledge of the Borrower, there are none now threatened.

3.23         Anti-Terrorism Laws.  (a)  Neither the Parent, its
Subsidiaries nor, to the Borrower’s knowledge, their Affiliates are in
violation of any Anti-Terrorism Law nor does the Parent or its Subsidiaries
engage in or conspire to engage in any transaction  that evades or avoids, or has the purpose of
evading or avoiding, or attempts to violate, any of the prohibitions set forth
in any Anti-Terrorism Law.

(b)           Executive
Order No. 13224.  Neither the Parent,
its Subsidiaries nor, to the Borrower’s knowledge, any of their Affiliates or
agents acting or benefiting in any capacity in connection with the extensions
of credit or other transactions hereunder, is any of the following (each a “Blocked
Person”):

(i)            a
Person that is listed in the annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224;

(ii)           a
Person owned or controlled  by, or acting
for or on behalf of, any Person that is listed in the annex to, or is otherwise
subject to the provisions of, Executive Order No. 13224;

(iii)          a
Person or entity with which any Lender is prohibited from dealing or otherwise
engaging in any transaction by any Anti-Terrorism Law;

 49
 

 

(iv)          a
Person or entity that commits, threatens or conspires to commit or supports “terrorism”
as defined in Executive Order No. 13224;

(v)           a
Person or entity that is named as a “specially designated national” on the most
current list published by the U.S. Treasury Department Office of Foreign Asset
Control at its official website or any replacement website or other replacement
official publication of such list; or

(vi)          a
person or entity who is affiliated or affiliated with a person or entity listed
above.

The Parent does not nor, to the Borrower’s knowledge, does any of the
Parent’s Subsidiaries, Affiliates or agents acting in any capacity in
connection with the extensions of credit hereunder or other transactions hereunder
(x) conduct any business or engage in making or receiving any contribution of
funds, goods or services to or for the benefit of any Blocked Person, or (y)
deal in, or otherwise engage in any transaction relating to, any property or
interests in property blocked  pursuant
to the Executive Order No. 13224.

3.24         BrassRing Acquisition.

(a)           Complete
and correct copies of the principal BrassRing Acquisition Documents have been
provided to the Administrative Agent.

(b)           Each
of the Loan Parties party to a BrassRing Acquisition Document (A) has the power
and authority under the laws of its jurisdiction of organization and under its
other organization documents to enter into and perform the BrassRing
Acquisition Documents to which it is a party and (B) has taken all actions
(corporate or otherwise) necessary for the execution and performance by it of
the BrassRing Acquisition Documents to which it is a party.  The BrassRing Acquisition Documents
constitute the valid and binding obligation of each Loan Party party thereto,
enforceable against such Loan Parties in accordance with their respective
terms, except that the enforceability of the obligations of the parties under
the BrassRing Acquisition Documents is subject to the provisions of bankruptcy,
insolvency, reorganization, moratorium or other similar laws and is subject to
general equity principles which may limit the specific enforcement of certain
remedies.

(c)           The
making and performance of the BrassRing Acquisition Documents does not in any
material respects violate any provision of any law or regulation, federal,
state or local, and does not violate any provisions of the organizational
documents of any Loan Party, or constitute a default under any material
agreement by which any Loan Party or its property may be bound.  No contracts that are material, in the
aggregate which were acquired in the BrassRing Acquisition may be terminated by
the counterparty(ies) thereto as a result of the BrassRing Acquisition and the
change of ownership occasioned thereby.

3.25         No Burdensome
Agreements.  Neither the Parent, the
Borrower nor any Subsidiary thereof is a party to or bound by any agreement or
instrument or subject to any corporate or other restriction the performance or
observance of which now has or, as far as the Borrower can reasonably foresee,
would reasonably be expected to have, a Material Adverse Effect.

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3.26         No Misrepresentations
or Material Nondisclosures.  Neither
this Agreement nor any other document, certificate or statement furnished to
the Administrative Agent or the Lenders in connection herewith contains any
untrue statement of a material fact or omits to state a material fact necessary
in order to make the statements contained herein and therein not
misleading.  As of the Closing Date,
there is no fact known to the Borrower which now or in the future (so far as
the Borrower can reasonably foresee) would reasonably be expected to have a
Material Adverse Effect which has not been set forth in this Agreement or in
the other documents, certificates and statements furnished to the Lenders in
connection with the transactions contemplated hereby.

All of the foregoing representations and warranties shall survive the
execution and delivery of the Notes and the making by the Lenders of the Loans
and issuance of Letters of Credit hereunder and shall continue in full force
and effect so long as any indebtedness or obligation of the Borrower to the
Lenders and/or the Administrative Agent hereunder or under the other Loan
Documents is outstanding or unperformed or this Agreement remains in effect.

SECTION
4.  CONDITIONS PRECEDENT

4.1           Conditions to
Closing.  The agreement of each
Lender to enter into this Agreement and to make the initial Loans requested to
be made and the Issuing Bank and each Revolving Credit Lender to issue and/or
participate in Letters of Credit requested to be issued on the Closing Date is
subject to the satisfaction on and as of the Closing Date of the following
conditions precedent:

(a)           Credit
Agreement and Notes.  The
Administrative Agent shall have received (i) this Agreement,
(A) executed and delivered by a duly authorized officer of the Borrower,
with a counterpart for each Lender, and (B) executed and delivered by a
duly authorized officer of the Administrative Agent and each Lender,
(ii) for the account of each (as applicable) Lender, a Revolving Credit
Note and/or Term Note, with each such Note conforming to the requirements
hereof and executed by a duly authorized officer of the Borrower.

(b)           Other
Loan Documents.  The Administrative
Agent shall have received each of the Security Documents and other Loan
Documents duly executed and delivered by each party thereto (including any
stock certificates and undated stock powers other than for any Foreign
Subsidiary of a Target, which shall be delivered as soon as practicable but in
any event within thirty (30) days after the Closing Date or such later date as
the Administrative Agent shall agree to in writing).  Any document (including without limitation
UCC financing statements) required to be filed, registered or recorded in order
to create, in favor of the Administrative Agent for the benefit of the Lenders,
a perfected, first priority Lien (subject only to Permitted Liens), shall have
been filed, registered or recorded and/or properly prepared for filing,
registration or recording in each office in each jurisdiction in which such
filings, registration and recordation are required to perfect such first
priority security interests created by the Security Documents, and the
Administrative Agent shall be satisfied that all such recordings and filings
have been or will be completed promptly following the Closing Date and that all
necessary filing, recording and other fees and all taxes and expenses related
to such filings, registrations and recordings have been or will be paid in full
by the Borrower.

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(c)           Loan
Party Certificates.  The
Administrative Agent shall have received a certificate of the Secretary or
Assistant Secretary of the Borrower and the other Loan Parties certifying the
resolutions of the board of directors of such Person and true and correct
copies of the certificate or articles of incorporation, bylaws or other
applicable governing documents of such Person and the signatures and incumbency
of the officers of such Person authorized to sign the Loan Documents to which
it is a party, and such certificates and attachments thereto shall be in form
and substance satisfactory to the Administrative Agent.

(d)           Existing
Credit Arrangements.  The Existing
Credit Agreement and any existing credit facilities relating to the BrassRing
Acquisition shall have been
terminated, all Indebtedness thereunder shall have been paid in full and the
Liens securing any such Indebtedness shall have been released and payoff
letters shall have been delivered to the Administrative Agent and be in a form
acceptable to the Administrative Agent.

(e)           Fees.  Each of the Administrative Agent and the Lead
Arranger shall have received all fees to be received by it individually or on
behalf of the Lenders on the Closing Date pursuant to the Fee Letter.

(f)            Legal
Opinions.  The Administrative Agent
shall have received the executed legal opinion of Pepper Hamilton, LLP, counsel
to the Borrower and the other Loan Parties. 
Such opinion shall be addressed to the Lenders and the Administrative
Agent and cover such matters incident to the transactions contemplated by this
Agreement as the Administrative Agent may reasonably require.

(g)           UCC
Filing and Other Searches.  The
Administrative Agent shall have received the results of (i) Uniform
Commercial Code searches made with respect to each of the Parent, the Borrower,
the other Loan Parties, together with copies of financing statements disclosed
by such searches and (ii) such tax and judgment lien searches as the
Administrative Agent shall reasonably request, and each of the foregoing
searches shall disclose no Liens, except for Permitted Liens or, if unpermitted
Liens are disclosed, the Administrative Agent shall have received satisfactory
evidence of the release of such Liens.

(h)           Insurance.  The Administrative Agent shall have received
certificates of insurance with respect to the Parent’s, the Borrower’s and the
other Loan Parties’ fire, casualty, liability and other insurance covering its
respective property and business, including lender loss payee endorsements in
favor of the Administrative Agent on Acord Form 27.

(i)            Good
Standing.  The Administrative Agent
shall have received certificates of good standing, subsistence and/or status
dated a recent date from the Secretary of State or appropriate authorities in
the state of formation of each of the Borrower and the other Loan Parties.

(j)            No
Material Adverse Effect; Closing Certificate.  No Material Adverse Effect shall have
occurred since June 30, 2006.  The
Administrative Agent shall have received a certificate from the Borrower and
the other Loan Parties, dated as of the Closing Date, and executed by a
Responsible Officer of such party stating that, as of the Closing Date
(i) all of

 52
 

 

the
representations and warranties made by such party herein and in the other Loan
Documents are true and correct in all material respects (except that
representations and warranties that expressly relate to an earlier date are
true and correct in all material respects as of such date), (ii) no Default
or Event of Default exists and (iii) no Material Adverse Effect has
occurred since June 30, 2006.

(k)           Governmental
Approvals.  The Administrative Agent
shall have received evidence that any necessary authorizations from any
Governmental Authority for the consummation of the transactions contemplated
hereby have been obtained.

(l)            Due
Diligence.  The Administrative Agent
and the Lenders shall have completed their due diligence review, including,
without limitation, a review of true and correct copies of the BrassRing
Acquisition Documents and any third party due diligence reports prepared in
connection therewith, the results of which shall be satisfactory to the
Lenders.

(m)          BrassRing
Acquisition Certification.  The
Administrative Agent shall have received a certificate from the Borrower
certifying that (i) the BrassRing Acquisition will be consummated
simultaneously herewith on terms and conditions consistent with the terms of
the BrassRing Acquisition Documents, (ii) the purchase price paid in
connection with the BrassRing Acquisition does not exceed $120,000,000
(excluding reasonable transaction expenses) and (iii) such aggregate purchase
price was partially funded with cash from the Parent and its Subsidiaries and
cash on hand of the Targets in an aggregate amount of at least $50,000,000.

(n)           Closing
Financial Condition Certificate.  The
Borrower shall have delivered to the Administrative Agent a certificate dated
as of the Closing Date and executed by a Responsible Officer of the Borrower,
with calculations attached thereto, evidencing (i) a minimum Liquidity Level
after giving effect to the Loans made by the Lenders on the Closing Date, the
issuance of any Letters of Credit by the Issuing Bank on such date and the
BrassRing Acquisition of at least $10,000,000,
(ii) the Parent’s pro forma Modified EBITDA for
the four (4) consecutive fiscal quarters ending September 30, 2006 of at
least $21,000,000 after giving effect to the BrassRing Acquisition and (iii)
the Total Net Leverage Ratio as of September 30, 2006 on a pro forma
basis after giving effect to the BrassRing Acquisition.

(o)           Financial
Statements and Projections.  The
Borrower shall have delivered to the Administrative Agent and the Lenders (i)
consolidated pro forma financial statements for the Parent and its Subsidiaries
(after giving effect to the BrassRing Acquisition) for the fiscal quarters
ended March 31, 2006, June 30, 2006 and September 30, 2006,
(ii) consolidated financial projections on a quarterly basis for the 2006
and 2007 fiscal years and on an annual basis for each fiscal year ending
thereafter through and including the 2009 fiscal year and (iii) a report,
prepared by a third party acceptable to the Administrative Agent, confirming
that the Targets’ modified EBITDA for the four consecutive fiscal quarters
ended June 30, 2006 is at
least $5,000,000, (inclusive of agreed-upon add-backs as set forth on Schedule
II hereto) in each case in form and substance satisfactory to the Lenders.

 53
 

 

(p)           BrassRing
Acquisition.  The Administrative
Agent shall have received and reviewed to its satisfaction BrassRing
Acquisition Documents and all of the documents, agreements or instruments
evidencing any seller notes or earn-outs.

(q)           Principal
Deposit Accounts.  The Borrower and
the other Loan Parties (other than the Targets and their Subsidiaries) shall
have established their principal deposit accounts at PNC.

(r)            Additional
Matters.  All corporate and other
proceedings, and all documents, instruments and other legal matters in
connection with the transactions contemplated by this Agreement and the other
Loan Documents shall be satisfactory in form and substance to the
Administrative Agent, and the Administrative Agent shall have received such
other documents and legal opinions in respect of any aspect or consequence of
the transactions contemplated hereby or thereby as it shall reasonably request.

4.2           Conditions to Each
Loan or Letter of Credit.  The
agreement of each Lender to make any Loan requested to be made by it and of the
Issuing Bank and each Revolving Credit Lender to issue and/or participate in
Letters of Credit requested to be issued on any date (including the Closing
Date) is subject to the satisfaction of the following conditions precedent:

(a)           Representations
and Warranties.  Each of the
representations and warranties made by the Borrower or any other Loan Party
herein or under the other Loan Documents shall be true and correct in all
material respects on and as of such date as if made on and as of such date
(except to the extent that such representations and warranties relate expressly
to an earlier date in which case such representations and warranties shall be
true and correct in all material respects as of such earlier date).

(b)           No
Default.  No Default or Event of
Default shall have occurred and be continuing on such date or after giving
effect to the making of such Loan or issuing such Letter of Credit.

(c)           No
Material Adverse Effect.  At the time
of making such Loan or issuing such Letter of Credit, no Material Adverse
Effect shall have occurred and be continuing.

Each request by the Borrower for a Loan or Letter of Credit hereunder
shall constitute a representation and warranty by the Borrower as of the date
thereof that the conditions contained in this Section 4.2 have been
satisfied.

4.3           Closing.  The closing (the “Closing”) of the
transactions contemplated hereby shall take place at the offices of Ballard
Spahr Andrews & Ingersoll, LLP, 1735 Market Street, Philadelphia, PA 19103,
commencing at 10:00 A.M., Philadelphia time, on November 13, 2006, or
such other place or date as to which the Administrative Agent, the Lenders and
the Borrower shall agree.  The date on
which the Closing shall be completed is referred to herein as the “Closing Date”.

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SECTION
5.  AFFIRMATIVE COVENANTS

The Borrower hereby agrees that, so long as the Revolving Credit
Commitments remain in effect, any Note or Letter of Credit remains outstanding
and unpaid, or any other amount is owing to any Lender or the Administrative
Agent hereunder or under any other Loan Document, the Borrower shall and
(except in the case of delivery of financial information, reports and notices,
Section 5.17 and Section 5.18) shall cause the Parent and each of its other
Subsidiaries to:

5.1           Furnishing Financial
Statements.  Furnish or cause to be
furnished to the Administrative Agent:

(a)           as
soon as available, but in any event not later than 90 days (or such earlier
date mandated by the SEC) after the close of each fiscal year of the Parent, a
copy of the annual audit report for such year for the Parent and its
consolidated Subsidiaries, including therein a consolidated balance sheet of
the Parent and its consolidated Subsidiaries as at the end of such fiscal year,
and related consolidated statements of income and retained earnings and changes
in cash flows of the Parent and its consolidated Subsidiaries for such fiscal
year, all in reasonable detail, prepared in accordance with GAAP applied on a
basis consistently maintained throughout the period involved and with the prior
year with such changes thereon as shall be approved by the Parent’s independent
certified public accountants, such financial statements to be certified by a
BDO Seidman, LLP or other
nationally recognized independent certified public accountants selected by the
Parent and reasonably acceptable to the Administrative Agent, without a “going
concern” or like qualification or exception or qualification arising out of the
scope of the audit;

(b)           as
soon as available, but in any event not later than 45 days after the end of
each fiscal quarter of the Parent (other than the last fiscal quarter),
unaudited consolidated financial statements of the Parent and its consolidated
Subsidiaries, including therein (i) a consolidated balance sheet of the
Parent and its consolidated Subsidiaries as at the end of such fiscal quarter,
(ii) the related consolidated statements of income and retained earnings
of the Parent and its consolidated Subsidiaries, and (iii) the related
consolidated statement of changes in cash flows of the Parent and its consolidated
Subsidiaries all for the period from the beginning of such fiscal quarter to
the end of such fiscal quarter and the portion of the fiscal year through the
end of such quarter setting forth in each case in comparative form the
corresponding figures for the like period of the preceding fiscal year; all in
reasonable detail, prepared in accordance with GAAP applied on a basis
consistently maintained throughout the period involved and with prior periods
(except for the absence of footnotes and subject to year-end adjustments) and
accompanied by a certificate of a Responsible Officer of the Parent stating
that the financial statements fairly present the financial condition of the
Parent and its consolidated Subsidiaries as of the date and for the periods
covered thereby;

The financial statements required to be delivered pursuant to clauses
(a) and (b) of this Section 5.1 shall be deemed to have been delivered on the
date on which such report is posted on the website of the Securities and
Exchange Commission at www.sec.gov and Borrower notifies Administrative Agent
in writing thereof.

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(c)           concurrently with the delivery of:

(i)            the financial statements referred to in
subsection 5.1(a), a certificate of the Parent’s independent certified public
accountants reporting on such financial statements stating that in making the
examination necessary for certifying such financial statements no knowledge was
obtained of any Event of Default under Section 6.1 hereof, except as
specifically indicated;

(ii)           the annual and quarterly financial
statements referred to in subsections 5.1(a) and 5.1(b), respectively, a
certificate of a Responsible Officer of the Borrower (each a “Compliance
Certificate”) showing in detail the calculations demonstrating compliance
with the financial covenants set forth in Section 6.1 and the Applicable
Margin and Applicable Commitment Fee Percentage, together with a certificate of
a Responsible Officer of the Borrower stating that, to his or her knowledge,
the Borrower during such period has kept, observed, performed and fulfilled
each and every covenant and condition contained in this Agreement and in the
Notes and the other Loan Documents to which it is a party and that such officer
has obtained no knowledge of any Default or Event of Default except as specifically
indicated; if the Compliance Certificate shall indicate that such officer has
obtained knowledge of a Default or Event of Default, such Compliance
Certificate shall state what efforts the Borrower is making to cure such
Default or Event of Default; and

(iii)          the financial statements referred to in
subsections 5.1(a) and 5.1(b), sufficient financial information to permit the
Lenders to calculate Modified EBITDA, including with respect to any Person who
has (or whose assets have) been acquired in a Permitted Acquisition and who is
(or whose assets have been) owned for less than four (4) full fiscal quarters,
calculations on a quarterly basis of the EBITDA attributable to such Person (or
such assets) for the applicable period prior to such acquisition.

(d)           any reports, including management letters,
promptly after their submittal to the Parent by its independent accountants in
connection with any annual, interim or special audit;

(e)           promptly, such additional financial and
other information as the Administrative Agent or any Lender may from time to
time reasonably request;

(f)            promptly after the same are available,
quarterly account statements with respect to each Unrestricted Investment
Account demonstrating the amount of cash and/or Cash Equivalents maintained in
such Unrestricted Investment Accounts by the Parent and/or its Subsidiaries
during such quarter, together with documentation in sufficient detail,
including summary sheets, to permit the Administrative Agent to confirm any
deduction by any Loan Party from Total Net Debt on account of cash and Cash
Equivalents maintained in Unrestricted Investment Accounts;

(g)           promptly following the execution thereof, a
copy of any letter of intent executed by the Borrower or any other Loan Party
in respect of a proposed acquisition for which the proposed Consideration is
$10,000,000 or more;

 56
 

 

(h)           any reports, notices or proxy statements
generally distributed by the Parent to its stockholders on a date no later than
the date supplied to such stockholders;

(i)            simultaneously with the delivery of the
financial statements required under subsection 5.1(a), but in any event on or
before ninety (90) days after the end of each fiscal year, (i) a budget for the
current fiscal year (and, if available, for the next fiscal year) approved by
the board of directors of the Parent (each
a “Budget”), and copies of any updates to such Budget prepared by or for
any Loan Party and (ii) projections through the later of the Revolving Credit
Termination Date and the Term Loan Maturity Date; and promptly upon request,
such additional or updated Budgets, projections, reports (including inventory
reports) and other information regarding the operations, business affairs and
financial condition of the Borrower and the other Loan Parties as the Required
Lenders may, from time to time, reasonably request;

(j)            As soon as possible, but in any event not
later than thirty (30) days after the Closing Date, a report by Parente
Randolph confirming the achievement of personnel related cost savings of at
least $6,600,000 in connection with the BrassRing Acquisition; and

(k)           promptly after the same become publicly
available, copies of all periodic, other reports, proxy statements or other
materials filed by the Parent or any Subsidiary thereof with the SEC, or any
Governmental Authority succeeding to any or all of the functions of the SEC, or
with any national securities exchange, or distributed to its equityholders, as
the case may be.

All balance sheets, statements and other information furnished pursuant
hereto shall be prepared in accordance with GAAP, except for the absence of
footnotes and subject to year-end adjustments in the case of the unaudited
financial statements, and shall fairly set forth the consolidated financial
condition of the Parent and its Subsidiaries and the results of their
operations.  The Lenders shall have the
right, from time to time, to discuss the Loan Parties’ affairs directly with
the Parent’s independent certified public accountants after notice to the
Borrower and the opportunity for the Borrower to be present at any such
discussions.  The Administrative Agent
and each Lender is authorized to show or deliver a copy of any financial
statement or any other information relating to the business, operations or
financial condition of the Parent and its Subsidiaries which may be furnished
to any Lender or come to its attention pursuant to this Agreement or otherwise,
to any regulatory body or agency having jurisdiction over such Lender and to
any bank or other financial institution which is a present or potential
participant with such Lender in the Loans and other extensions of credit
hereunder, provided such bank or financial institution agrees to keep such
information confidential on the terms hereof.

5.2           Books and Records.  Maintain proper and complete books and
records of account in which shall be set forth accurately and in accordance
with GAAP, all of its dealings and transactions.

5.3           Taxes.  Pay when due all taxes, assessments, charges
and levies imposed upon it or any of its properties or which it is required to
withhold and pay over, and provide evidence of such payment to the
Administrative Agent if requested, except where such taxes,

 57
 

 

assessments or charges shall be contested in good
faith by appropriate proceedings and where adequate reserves therefor have been
set aside on its books, provided that the Parent and its Subsidiaries shall pay
or cause to be paid all such taxes, assessments, charges, and levies forthwith
whenever foreclosure on any Lien that attaches (or security therefor) appears
imminent.

5.4           Corporate Existence
and Rights; Compliance with Laws. 
Preserve and keep in full force and effect its corporate existence,
rights, permits, patents, franchises, licenses, trademarks and trade names and
other Intellectual Property and comply with any and all laws, regulations,
rules or requirements of any federal agency or department and of any state,
local or municipal government, agency or department which may at any time be
applicable to it, except to the extent failure to do so would not reasonably be
expected to have a Material Adverse Effect.

5.5           Maintenance of
Properties.  Maintain all of its
tangible property (except for obsolete property not yet disposed of) in good
repair, working order and condition and, from time to time, make all
appropriate and proper repairs, renewals, replacements, additions and
improvements thereto, except to the extent failure to do so would not
reasonably be expected to have a Material Adverse Effect.

5.6           Performance and
Compliance with Material Agreements. 
Perform and comply with each of the provisions of all Loan Documents
and, except to the extent failure to do so would not otherwise cause an Event
of Default or would not reasonably be expected to have a Material Adverse
Effect, all other material agreements.

5.7           Insurance.  Carry at all times, in coverage, form and
amount reasonably satisfactory to the Administrative Agent (and, in any event
in such amounts and covering such risks as is consistent with sound business
practice and other similarly situated companies), hazard insurance and business
interruption coverage (with fire, extended coverage, vandalism, malicious
mischief coverage and business interruption coverage and coverage against such
other hazards as are customarily insured against by companies in the same or
similar business), comprehensive general liability insurance, worker’s
compensation insurance, comprehensive automobile liability insurance and such
other insurance as may be required by the Loan Documents and as the Administrative
Agent may from time to time reasonably require, and pay all premiums on the
policies for such insurance when and as they become due and do all other things
necessary to maintain such policies in full force and effect.  The Borrower shall from time to time upon
request by the Administrative Agent or the Required Lenders, promptly furnish
or cause to be furnished to the Administrative Agent or the Lenders evidence in
form and substance satisfactory to the Administrative Agent or the Required
Lenders, of the maintenance of all insurance required to be maintained by this
Section 5.7 including, but not limited to, such originals or copies as the
Administrative Agent or the Required Lenders may request of policies,
certificates of insurance, riders and endorsements relating to such insurance
and proof of premium payments.  The
Borrower shall cause all hazard insurance policies and any policies insuring
the inventory and equipment covered by the Security Agreement to provide, and
the insurers issuing such policies to certify to the Lenders, that (a) the
interest of the Administrative Agent shall be insured regardless of any breach
or violation by the Parent or any Subsidiary thereof or the holder or owner of
the policies of any warranties, declarations and conditions

 58
 

 

contained in such policies; (b) if such insurance be
proposed to be canceled or materially changed for any reason whatsoever, such
insurer will promptly notify the Administrative Agent and such cancellation or
change shall not be effective as to the Administrative Agent for thirty (30)
days after receipt by the Administrative Agent of such notice, unless the
effect of such change is to extend or increase coverage under the policy; (c)
the Administrative Agent and the Lenders will have the right at their election
to remedy any default in the payment of premiums within thirty (30) days of
notice from the insurer of such default; and (d) loss payments in each instance
will be payable to the Administrative Agent as secured party, or otherwise as
its or the Lenders’ interests may appear. 
The Administrative Agent, its officers, employees and authorized agents,
are hereby irrevocably appointed attorneys-in-fact of the Borrower to endorse
any draft or check which may be payable to the Administrative Agent, in order
to collect the proceeds of such insurance covering the collateral and
distribute the same as the Required Lenders may determine; provided that, if at
the time of receipt of any such proceeds no Event of Default has occurred and
is continuing, such proceeds shall be released to the Borrower to pay the costs
of repairing, restoring or replacing the assets lost, damaged or destroyed.

5.8           Inspection;
Collateral Audit.  Permit any
representative of the Administrative Agent and the Lenders to visit and inspect
any of its properties, to examine its books of account and other records and
files, to make copies thereof, and to discuss their affairs, business, finances
and accounts with its officers and employees, all at such reasonable times and
as often as the Administrative Agent or any Lender may reasonably request,
provided that such inspections shall not unreasonably interfere with the
conduct of the Loan Parties’ business.  All reasonable costs incurred by the
Administrative Agent and the Lenders in connection with up to two (2) such
inspections conducted in any calendar year shall be paid by the Borrower; provided,
however, the Borrower also shall pay all such costs in connection with
any such inspections during the existence of a Default or Event of Default.  The inspections are solely for the protection
of the Administrative Agent and the Lenders and no action or inaction of the
Administrative Agent or the Lenders shall constitute any representation that
the Borrower is in compliance with the terms of this Agreement or that the
Administrative Agent or the Lenders approve of the Loan Parties’ affairs,
business, finances or accounts.

5.9           Leases and Mortgages.  Pay all rent or other sums required by any
lease or mortgage to which it is a party as the same becomes due and payable,
duly perform and comply with all of its other obligations as tenant or
mortgagor thereunder, except to the extent that any such obligation is the
subject of a good faith dispute and adequate reserves have been set aside
therefor, and keep all such leases in full force and effect, except to the
extent the absence or loss of such lease would not reasonably be expected to
have a Material Adverse Effect.

5.10         Pay Indebtedness and
Perform Other Covenants.  Make full
and timely payment of the principal of, and interest on, the Notes, the
Reimbursement Obligations, the Commitment Fees and (except to the extent
non-payment of such Indebtedness would not violate Section 7.1(f)) all
other Indebtedness of the Loan Parties, whether now existing or hereafter
arising, and duly comply with all covenants and agreements set forth in or
required pursuant to any other agreement or document previously, concurrently
or hereafter executed or delivered by the Loan Parties in connection with this
Agreement, except that the Loan Parties may contest in good faith after making
appropriate reserves therefor amounts owing in respect of Indebtedness other
than Indebtedness arising under the Loan Documents.

 59
 

 

5.11         Notices.  Promptly give notice to the Administrative
Agent on behalf of the Lenders of:

(a)           as soon as the Borrower has knowledge, the
occurrence of any Default or Event of Default;

(b)           any (i) default or event of default under
any material Contractual Obligation of the Parent or any of its Subsidiaries or
(ii) litigation, investigation or proceeding which may exist at any time
between the Parent or any of its Subsidiaries and any Governmental Authority,
which in either case, if not cured or if adversely determined, as the case may
be, would reasonably be expected to have a Material Adverse Effect or result in
a liability in excess of $500,000;

(c)           any litigation or proceeding which could
give rise to a liability of the Parent or any of its Subsidiaries of $500,000
or more and not covered by insurance as reasonably determined by the Borrower’s
corporate counsel or in which injunctive or similar relief is sought;

(d)           the occurrence or existence of a material
default by any party, including the Parent or any of its Subsidiaries, to any
material contract to which the Parent or a Subsidiary is a party, or the actual
or threatened termination, revocation or non-renewal of any such material
contract;

(e)           entry of any order, judgment, decree or
decision issued by any court, arbitrator or Governmental Authority in any proceeding
to which the Parent or any of its Subsidiaries is a party and which would
individually or in the aggregate reasonably be expected to have a Material
Adverse Effect;

(f)            any material default, event of default or
breach by any Person under any BrassRing Acquisition Document; and

(g)           any other event which, to the Borrower’s
knowledge, has had or would reasonably be expected to have a Material Adverse
Effect.

Each notice pursuant to this subsection shall be accompanied by a
statement of a Responsible Officer of the Borrower setting forth details of the
occurrence referred to therein and stating what action the Borrower proposes to
take with respect thereto.  Upon the
request of the Administrative Agent, the Borrower shall send (or cause to be
sent) to the Administrative Agent and/or the Lenders copies of all Federal,
state, local and foreign tax returns and reports filed by the Parent or any of
its Subsidiaries in respect of taxes measured by income.

5.12         Deposit Accounts.  Except with respect
to the Targets and their Subsidiaries, maintain its principal domestic deposit
accounts with PNC.  Within sixty (60)
days of the Closing Date, open and thereafter maintain the principal domestic
deposit accounts of the Targets and their Subsidiaries at PNC.

5.13         ERISA. 
Furnish to the Administrative Agent (a) promptly and in any event within
30 days after it has knowledge that it or any Affiliate has incurred Withdrawal

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Liability, or that any Multiemployer Plan is in Reorganization or that
any Reportable Event or Foreign Benefit Event has occurred with respect to any
Employee Pension Plan or that PBGC has instituted or will institute proceedings
under Title IV of ERISA to terminate any Employee Pension Plan or to appoint a
trustee to administer any Employee Pension Plan, a statement setting forth the
amount of such Withdrawal Liability, the details of the Reorganization,
Reportable Event, Foreign Benefit Event or termination or appointment
proceedings and the action which it (or the Multiemployer Plan sponsor or
Employee Pension Plan sponsor if other than the Parent) proposes to take with
respect thereto, together with a copy of any notice of Withdrawal Liability or
Reorganization given to the Parent or any Affiliate and a copy of the notice of
such Reportable Event given to PBGC or a copy of the notice of such Foreign
Benefit Event, in each case, if a copy of such notice is reasonably available
to the Borrower or any of its Affiliates, and (b) promptly after receipt
thereof, a copy of any notice (i) the Parent or any of its Affiliates or the
sponsor of any Employee Pension Plan receives from PBGC or the Internal Revenue
Service which sets forth or proposes any negative action or determination with
respect to such Employee Pension Plan and (ii) the Parent, the Borrower, any of
their Subsidiaries or the sponsor of any Foreign Benefit Plan receives from any
Governmental Authority regulating such Foreign Benefit Plan which sets forth or
proposes any action or determination with respect to such Foreign Benefit
Plan.  The Borrower will promptly notify
the Administrative Agent of any excise taxes which have been assessed against
the Parent or any of its Subsidiaries or any of its Affiliates by (x) the
Internal Revenue Service with respect to any Employee Pension Plan or
Multiemployer Plan or (y) the applicable Government Authority regulating any
Foreign Benefit Plan.  Within the time
required for notice to the PBGC under Section 302(f)(4)(A) of ERISA, the
Borrower will notify the Administrative Agent of any Lien of which the Borrower
has knowledge arising under Section 302(f) of ERISA in favor of any Employee
Pension Plan.  The Borrower will promptly
notify the Administrative Agent of the following events, and in any event
within 30 days after the Borrower knows or has reason to know thereof: (i) a
failure to make any required contribution to a Plan or Foreign Benefit Plan,
any Lien in favor of PBGC, Plan or Foreign Benefit Plan, or any withdrawal
from, or the termination, Reorganization or Insolvency of any Multiemployer
Plan or (ii) assessment of liability under the Coal Industry Retiree Health
Benefit Act of 1992.

5.14         Environmental Laws.

(a)           Comply with, and require compliance by all
tenants and all subtenants, if any, with, all Environmental Laws and obtain and
comply with and maintain, and require that all tenants and subtenants obtain
and comply with and maintain, any and all licenses, approvals, registrations or
permits required by Environmental Laws, except to the extent that failure to so
comply or obtain or maintain such documents would not reasonably be expected to
have a Material Adverse Effect;

(b)           Comply with all lawful and binding orders
and directives of all Governmental Authorities respecting Environmental Laws,
except to the extent the failure to so comply would not reasonably be expected
to have a Material Adverse Effect; and

(c)           Defend, indemnify and hold harmless each of
the Agents and the Lenders, and their respective Affiliates, employees, agents,
advisors, officers, directors, successors and assigns (each, an “Indemnitee”)
from and against any claims, demands, penalties,

 61
 

 

fines, liabilities, settlements, damages, costs and expenses of
whatever kind or nature known or unknown, contingent or otherwise, arising out
of, or in any way relating to any violation of or noncompliance with or
liability under any Environmental Laws, or any orders, requirements or demands
of Governmental Authorities related thereto which in each case relate to or
arise in connection with the Parent, the Borrower, any Subsidiaries thereof,
any Property or any activities relating to any property or business of the
Parent, the Borrower or any Subsidiaries thereof or the enforcement of any
rights provided herein or in the other Loan Documents, including, without
limitation, attorneys’ and consultants’ fees, response costs, investigation and
laboratory fees, court costs and litigation expenses, except to the extent that
any of the foregoing arise out of the gross negligence or willful misconduct of
such Indemnitee.  This indemnity shall
continue in full force and effect regardless of the termination of this
Agreement and the payment of the Notes and other Obligations.

5.15         Notice
and Joinder of New Subsidiaries. 
Notify the Administrative Agent as soon as practicable after acquiring
or creating a new Subsidiary, and cause

(a)           (i) any new Domestic Subsidiary to execute
and deliver to the Administrative Agent (A) a Guaranty (or Joinder, as
determined by the Administrative Agent) in form and substance acceptable to the
Administrative Agent pursuant to which it shall guaranty all of the Obligations
and (B) a Security Agreement (or Joinder, as determined by the Administrative
Agent) in form and substance satisfactory to the Administrative Agent pursuant
to which such Domestic Subsidiary shall grant a security interest to the
Administrative Agent in its assets as additional Collateral for the Obligations
and (ii) the owner of such Domestic Subsidiary to execute and deliver a Pledge
Agreement (or Joinder as determined by the Administrative Agent) in form and
substance acceptable to the Administrative Agent pursuant to which all of the
Capital Stock in such Domestic Subsidiary shall be pledged to the Administrative
Agent, for the benefit of the holders of the Obligations, as Collateral for the
Obligations.

(b)           any Domestic Subsidiary that is the owner of
any new first-tier Foreign Subsidiary to execute and deliver to the
Administrative Agent a Pledge Agreement (or Joinder as determined by the
Administrative Agent) in form and substance reasonably acceptable to the
Administrative Agent pursuant to which sixty-five percent (65%) of the issued
and outstanding Capital Stock of such Foreign Subsidiary (to the extent owned by
the Parent or a Domestic Subsidiary) shall be pledged to the Administrative
Agent, for the benefit of the holders of the Obligations, as Collateral for the
Obligations.

(c)           in connection with any such Guaranties,
Security Agreements, Pledge Agreements and/or Joinders, the Parent, the
Borrower and/or the applicable Subsidiary or Subsidiaries to execute and
deliver or cause to be executed and delivered such additional documentation as
the Administrative Agent shall reasonably require, including without limitation,
certificates similar to those referred to in subsection 4.1(c), opinions and
stock certificates, if any, evidencing such Capital Stock (together with
undated stock powers endorsed in blank).

5.16         Anti-Terrorism Laws.  Neither the Parent, the Borrower nor their
Affiliates, Subsidiaries and agents shall (a) conduct any business or engage in
any transaction or

 62
 

 

dealing with any Blocked Person, including the making
or receiving of any contribution of funds, goods or services to or for the
benefit of any Blocked Person, (b) deal in, or otherwise engage in any
transaction relating to, any property or interests in property blocked pursuant
to Executive Order No. 13224; or (c) engage in or conspire to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in Executive Order
No. 13224 or the USA Patriot Act.  The
Borrower shall deliver to the Administrative Agent any certification or other
evidence requested from time to time by the Administrative Agent in its sole
discretion, confirming Borrower’s compliance with this Section 5.16.

5.17         Hedge Agreements.  Within one (1) year following the Closing
Date, purchase and enter into, and at all times thereafter maintain, one or
more Hedge Agreements which shall hedge the interest cost to the Borrower on at
least $15,000,000 of the Indebtedness hereunder.  Each such Hedge Agreement (i) shall
provide interest rate protection for at least twenty-four (24)
months from the date of such Hedge Agreement, (ii) must be reasonably
satisfactory to the Administrative Agent in all respects, (iii) shall be
entered into with counterparties reasonably satisfactory to the Administrative
Agent (it being agreed that any Lender shall be deemed acceptable), and
(iv) shall conform to then current International Swaps and Derivatives
Association standards.  All obligations
of the Borrower to any Lender or Affiliate thereof pursuant to any Hedge
Agreement entered into between the Borrower and such Lender or its Affiliate
shall be secured by a Lien on the Collateral. 
Any Hedge Agreement entered into between the Borrower and any Person
other than a Lender or Affiliate thereof shall be unsecured.

5.18         Kenexa Care, Inc.  Unless Kenexa Care, Inc. is dissolved within
six months of the Closing Date (or such later date as the Administrative Agent
shall agree to in writing), cause Kenexa Care, Inc. to become a Guarantor and
otherwise comply with the provisions of Section 5.15 as if Kenexa Care, Inc.
was a new Domestic Subsidiary.

SECTION
6.  NEGATIVE COVENANTS

The Borrower hereby agrees that, so long as the Revolving Credit
Commitments remain in effect, any Note or Letter of Credit remains outstanding
and unpaid, or any other amount is owing to any Lender or the Administrative
Agent hereunder or under any other Loan Document, the Borrower shall not, and
shall not permit the Parent or any of its Subsidiaries to, directly or
indirectly:

6.1           Financial Covenants.

(a)           Total Leverage Ratio.  Permit, as of the last day of any fiscal
quarter ending during the periods set forth below, the Total Leverage Ratio to
exceed that set forth opposite such period:

	
  Period

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  Closing Date - March 30, 2007

  	
   

  	
  3.50 to 1.0

  
	
  March 31, 2007 - December 30, 2007

  	
   

  	
  3.00 to 1.0

  
	
  December 31, 2007 and thereafter

  	
   

  	
  2.50 to 1.0

  

 

 63
 

 

(b)           Fixed Charge Coverage Ratio.  Permit, as of the end of any fiscal quarter,
commencing with the fiscal quarter ending September 30, 2007, the Fixed Charge
Coverage Ratio to be less than 1.20 to 1.00.

(c)           Minimum EBITDA.  Permit, as of the last day of any fiscal
quarter ending during the periods set forth below, EBITDA to be less than that
set forth opposite such period:

	
  Period

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  Closing Date - June 29, 2007

  	
   

  	
  $

  	
  20,000,000

  
	
  June 30, 2007 - December 30, 2007

  	
   

  	
  $

  	
  23,000,000

  
	
  December 31, 2007 and thereafter

  	
   

  	
  $

  	
  27,500,000

  

 

6.2           Limitation on
Indebtedness.  At any time incur,
create, assume, or suffer to exist any Indebtedness except:

(a)           amounts outstanding under the Loan Documents
and Indebtedness relating to Hedge Agreements required pursuant to Section
5.17;

(b)           purchase money Indebtedness on equipment
purchased in the ordinary course of business and Capital Lease Obligations not
exceeding, together with any purchase money Indebtedness or Capital Lease
Obligations listed on Schedule 6.2, an aggregate principal amount at any
time outstanding of $4,000,000;

(c)           Indebtedness existing as of the date hereof
described on Schedule 6.2 (including, except with respect to seller
notes, any extensions or renewals or refinancings thereof provided there is no
increase in the amount thereof or other significant change in the terms
thereof);

(d)           Indebtedness in an aggregate amount not to
exceed $1,000,000 at any one time outstanding of a Person which becomes a
Subsidiary after the Closing Date, provided that (i) such Indebtedness existed
at the time such Person became a Subsidiary and was not created in anticipation
of the acquisition, (ii) immediately after giving effect to the acquisition of
such Person by the Borrower or a Subsidiary, no Default or Event of Default
shall have occurred and be continuing and (iii) the Borrower has complied with
Section 5.15 hereof;

(e)           earn-outs in connection with Permitted
Acquisitions consummated after the date hereof (but not seller notes which, for
any Permitted Acquisition consummated on or after the Closing Date, shall only
be permitted to the extent that they constitute Subordinated Debt);

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(f)            unsecured Indebtedness of the Borrower and
its Subsidiaries in an aggregate principal amount not to exceed $500,000 at any
time outstanding the proceeds of which are to be used for the Borrower’s and
its Subsidiaries’ general corporate purposes;

(g)           Subordinated Debt;

(h)           subject to Section 6.6, Indebtedness owed to
a Loan Party or any other Subsidiary by another Loan Party or any other
Subsidiary;

(i)            other Indebtedness in respect of letters of
credit or bank guaranties issued for the account of Foreign Subsidiaries in an
aggregate amount available to be drawn not to exceed $500,000 at any time
outstanding;

(j)            Guaranty Obligations incurred in the
ordinary course of business by the Parent or any of its Subsidiaries of (i)
obligations of any Loan Party or (ii) any Indebtedness of the Parent or any of its
Subsidiaries permitted under this Section 6.2 (except (x) as regards
Indebtedness under clause (c) above, only if and to the extent such
Indebtedness was guaranteed on the Closing Date and (y) Subordinated Debt under
clause (g) above); and

(k)           Indebtedness relating to Hedge Agreements
entered into for non-speculative purposes.

6.3           Limitation on Liens.  Create, incur, assume or suffer to exist any
Lien upon any of its property, assets or revenues, including, without
limitation, the stock of any Subsidiary, whether now owned or hereafter
acquired, except for (the following, collectively, “Permitted Liens”):

(a)           Liens in favor of the Lenders or the
Administrative Agent arising under the Loan Documents;

(b)           The following, (i) if the validity or amount
thereof is being contested in good faith by appropriate and lawful proceedings
diligently conducted so long as levy and execution thereon have been stayed and
continue to be stayed or (ii) if a final judgment is entered and such judgment
is discharged within thirty (30) days of entry, and in either case they do not
materially impair the ability of the Loan Parties to perform their obligations
hereunder or under the other Loan Documents:

(A)          Claims or Liens for taxes, assessments or
charges due and payable and subject to interest or penalty, provided that the
Loan Parties maintain such reserves or other appropriate provisions as shall be
required by GAAP and pay all such taxes, assessments or charges forthwith upon
the commencement of proceedings to foreclose any such Lien; and

(B)           Claims or Liens upon, and defects of title
to, real or personal property including any attachment of personal or real
property or other legal process prior to adjudication of a dispute on the
merits.

(c)           liens for taxes not yet due or which are
being contested in compliance with Section 5.3;

 65
 

 

(d)           carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business;

(e)           pledges or deposits in connection with
workers’ compensation, unemployment insurance and other social security or
social welfare legislation;

(f)            liens of landlords or of mortgagees of
landlords arising by operation of law and deposits to secure the performance of
leases in the ordinary course of business;

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

(h)           easements, rights-of-way, restrictions and
other similar encumbrances incurred in the ordinary course of business which,
in the aggregate, are not substantial in amount and which do not interfere with
the ordinary conduct of the business of the Loan Parties;

(i)            Liens which were in existence on the date
hereof and shown on Schedule 6.3 and extensions or replacements thereof;

(j)            Liens on assets (other than inventory or
receivables) of Persons which become Subsidiaries after the date of this Agreement,
provided that such Liens existed at the time the respective corporations became
a Subsidiary and were not created in anticipation thereof, provided that, (i)
any such Lien does not by its terms cover any property or assets after the time
such company becomes a Subsidiary which were not covered immediately prior
thereto (ii) and the Borrower has complied with Section 5.15 hereof;

(k)           Capital Leases and purchase money security
interests as and to the extent permitted under this Agreement; and

(l)            Liens securing reimbursement obligations
under any letter of credit permitted by subsection 6.2(i), provided that such
Liens attach solely to the assets of the Foreign Subsidiary to which such
letter of credit relates;

6.4           Limitations on
Fundamental Changes.  Enter into any
merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself
(or suffer any liquidation or dissolution), or convey, sell, lease, assign,
transfer or otherwise dispose of, all or substantially all of its property,
business or assets except:

(a)           a Subsidiary of the Borrower may merge,
consolidate or amalgamate into the Borrower so long as the Borrower is the
surviving entity;

(b)           a Subsidiary of the Borrower may merge,
consolidate or amalgamate into or with any Subsidiary provided that the
surviving entity is or becomes a Loan Party;

 66
 

 

(c)           a Non-Loan Party may merge, consolidate or
amalgamate with or into any other Non-Loan Party;

(d)           subject to Section 6.16, a Subsidiary of the
Borrower may sell, lease, transfer or otherwise dispose of any or all of its
assets (upon voluntary liquidation or otherwise) to the Borrower or any other
Loan Party;

(e)           a Non-Loan Party may liquidate, wind up or
dissolve itself or suffer any liquidation or dissolution;

(f)            a Non-Loan Party may sell, lease, transfer
or otherwise dispose of any or all of its assets (upon voluntary liquidation or
otherwise) to any other Non-Loan Party; and

(g)           a merger permitted under Section 6.6.

provided that, immediately after each such
transaction and after giving effect thereto, the Borrower is in compliance with
this Agreement and no Default or Event of Default shall be in existence or
result from such transaction.

6.5           Limitations on Sale
of Assets.  Convey, sell, lease,
assign, transfer or otherwise dispose of any of its property, business or
assets (including, without limitation, accounts receivables and leasehold
interests), whether now owned or hereafter acquired, except:

(a)           obsolete or worn out property disposed of in
the ordinary course of business;

(b)           the sale of inventory or other assets in the
ordinary course of business;

(c)           as permitted by Section 6.4;

(d)           Permitted Liens;

(e)           the abandonment of any patent, patent
application, trademark, trademark application service mark or copyright that
the Borrower or any Subsidiary determines, in its commercial reasonable
judgment, is no longer necessary or useful in any material respect in its
business; and

(f)            transfers of assets by any Loan Party to
any Non-Loan Party, provided that such Loan Party receives cash consideration
in an amount not less than the fair market value of such transferred assets.

This Section 6.5 shall not prohibit the Borrower or any Subsidiary from
purchasing, holding or acquiring any Investment that is a Permitted Investment.

6.6           Limitations on
Acquisitions and other Investments. 
Purchase, hold or acquire beneficially any stock, other securities or
evidences of indebtedness of, or make or

 67
 

 

permit any Investment (including in any other Person),
except for Permitted Investments; provided that, no Permitted Acquisition shall
be completed after the Closing Date unless prior to the 15th day before such
completion (or, with respect to any Permitted Acquisition the Consideration for
which is less than $10,000,000, within 30 days after such completion), the
Borrower has provided to the Administrative Agent (a) audited, if
available, and, if not, unaudited annual financial statements of the Person
being acquired (or whose assets are being acquired) for the two (2) fiscal
years (or such lesser period of such Person’s existence), (b) unaudited
financial statements for any interim fiscal period(s), prior to the
consummation of such proposed acquisition, and (c) such additional independent
third party due diligence reports and field audits and/or examinations, as the
Required Lenders may request, all in form and substance satisfactory to the
Required Lenders; provided that, the Borrower shall use good faith efforts to
obtain three (3) years of financial statements of the Person being acquired (or
whose assets are being acquired).

6.7           Limitation on
Distributions.  At any time make (or
incur any liability to make) or pay any Distribution (whether in cash or
property or obligations of a Borrower or any Subsidiary thereof) in respect of
the Parent or any Subsidiary thereof (other than a Distribution payable to the
Borrower or from a Subsidiary of the Borrower to another Subsidiary of the
Borrower); except that, so long as no Default or Event of Default shall have
occurred and be continuing, Borrower shall be permitted to pay dividends to the
Parent, to pay professional fees, franchise and income taxes and other ordinary
course of business operating expenses 
incurred by the Parent solely in its capacity as parent corporation of
Borrower and the Subsidiaries thereof.

6.8           Transactions with
Affiliates.  Except as expressly
permitted in this Agreement, directly or indirectly enter into any transaction
or arrangement whatsoever or make any payment to or otherwise deal with any
Affiliate other than a Loan Party, except, as to all of the foregoing pursuant
to the reasonable requirements of the Loan Parties’ businesses and upon fair
and reasonable terms no less favorable to the Loan Parties than would be
obtained in a comparable arm’s length transaction with a Person not an Affiliate.

6.9           Sale and Leaseback.  Enter into any arrangement with any Person
providing for the leasing by the Borrower or any Subsidiary of real or personal
property which has been or is to be sold or transferred by the Borrower or any
Subsidiary to such Person or to any other Person to whom funds have been or are
to be advanced by such Person on the security of such property or rental
obligations of the Borrower or such Subsidiary.

6.10         Continuation of or
Change in Business.  Engage in any
business either directly or through any Subsidiary except for businesses in
which the Borrower and its Subsidiaries are engaged in on the date of this
Agreement and any business activities directly related to such existing
businesses.

6.11         Limitation on Negative
Pledge.  Enter into any agreement
with any Person other than the Administrative Agent and the Lenders which
prohibits or limits the ability of the Parent or its Subsidiaries to create,
incur, assume or suffer to exist any Lien upon any of its or their properties,
assets or revenues, whether now owned or hereafter acquired; provided, that,
the Borrower or any Subsidiary thereof may enter into such agreement in
connection with any Lien

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permitted by subsection 6.2(b) of this Agreement, when
such prohibition or limitation is by its terms effective only against the
assets subject to such Lien.

6.12         Limitation on Optional
Prepayment of Indebtedness.  Make any
optional payment or prepayment or redemption, defeasance or purchase of any
Subordinated Debt, earn-outs and any other Indebtedness evidenced by any seller
notes (other than the seller note payable to Scottworks Solutions, Inc., dated
July 29, 2005 in the original principal amount of $300,000); or amend, modify
or change, or consent or agree to any amendment, modification or change to, any
of the terms of any Subordinated Debt or any seller notes or earn-out
arrangements (other than any amendment, modification or change of a nature
which (a) would extend the maturity or reduce the amount of any payment of
principal thereof, (b) would reduce the rate or extend the date for payment of
interest thereon or (c) is not material and, in any event, will not involve
accelerating the date or increasing the amount of any payment or
prepayment.  Notwithstanding anything in
this Section 6.12 to the contrary, the Borrower and its Subsidiaries shall be
permitted to set off amounts owed by them under any seller note against
indemnification obligations owed to them by the payee of such note in
accordance with the terms thereof, and such setoff shall not be deemed an
optional payment or prepayment or redemption, defeasance or purchase of any
Indebtedness or earn-out payment under this Section 6.12.  Promptly following any such set-off, the
Borrower shall provide the Administrative Agent with notice of such set-off
setting forth in reasonable detail the amount of such set-off and the resulting
principal amount then outstanding under such seller note after giving effect to
such set-off.

6.13         Use of Proceeds.  Directly or indirectly apply any part of the
proceeds of the Loans to the purchasing or carrying of any “margin stock”
within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System, or any regulations, interpretations or rulings thereunder.

6.14         Fiscal Year.  Permit any fiscal year of the Parent to end
on a day other than December 31.

6.15         Clauses Restricting
Subsidiary Distributions.  Enter into
or suffer to exist or become effective any (a) consensual encumbrance or
restriction or (b) injunction or other order imposing a restriction, on the
ability of any Subsidiary of the Borrower to (i) make Distributions in respect
of any Capital Stock of such Subsidiary held by, or pay any Indebtedness owed
to, the Borrower or any other Subsidiary, (ii) make loans or advances to, or
other Investments in, the Borrower or any other Subsidiary of the Borrower or
(iii) transfer any of its assets to the Borrower or any other Subsidiary of the
Borrower, except for any restrictions existing under the Loan Documents.

6.16         Limitation on
Activities of the Parent.  Permit the
Parent to (a) own any property other than Capital Stock of the Borrower
and property ancillary thereto, (b) engage in any business other than
business incidental to its ownership of Capital Stock in the Borrower or
(c) have any liabilities other than liabilities incurred in the ordinary
course of business.

6.17         No Misrepresentations
or Material Nondisclosure.  Furnish
the Administrative Agent or any Lender any certificate or other document that
will contain any

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untrue statement of a material fact or that will omit
to state a material fact necessary in order to make it not misleading in light
of the circumstances under which it was furnished.

SECTION
7.  EVENTS OF DEFAULT

7.1           Events of Default.  Each of the following shall constitute an
event of default (an “Event of Default”):

(a)           The Borrower fails to pay on or before the
date when due, whether on demand or otherwise, any principal of the Notes or
any Reimbursement Obligation, or fails to pay within five (5) days after the
date when due, any interest thereon or any other Indebtedness (including fees
and expenses) to the Administrative Agent or the Lenders under this Agreement
or the other Loan Documents.

(b)           The Borrower fails to comply with or perform
as and when required or to observe any of the terms, conditions or covenants
contained in Sections 5.1, 5.7, 5.11, 5.15, 5.17 or Section 6 of this
Agreement.

(c)           The Borrower or any Loan Party fails to
comply with or perform as and when required any of the terms, covenants, or
conditions of this Agreement or any other Loan Document (other than as provided
in subsections (a) and (b) above) to be complied with, performed or observed by
the Borrower or such Loan Party and such failure shall continue unremedied for
a period of 30 days after notice thereof from the Administrative Agent or any
Lender to the Borrower.

(d)           Any financial statement or any
representation or warranty of the Borrower or any Loan Party made herein or in
any other Loan Document or in any report, certificate or other document
furnished under or in connection with this Agreement proves to have been false
or misleading in any material respect on or as of the date made or deemed made.

(e)           There occurs a default or event of default
under (a) any of the other Loan Documents or any other document or instrument
delivered to the Administrative Agent by the Borrower or any other Loan Party
or (b) any Hedge Agreement entered into with a Lender or Affiliate thereof, and
such default or event of default continues unremedied beyond the grace period,
if any, provided therein.

(f)            The Parent or any Subsidiary thereof shall
(i) default in the payment of any principal of or interest on or any other
amount payable on any Indebtedness beyond the period of grace (not to exceed 30
days), if any, provided in the instrument or agreement under which such
Indebtedness was created and the aggregate amount of such Indebtedness in
respect of which such default or defaults shall have occurred is at least
$500,000; or (ii) default in the observance or performance of any other
agreement or condition relating to any such Indebtedness in excess of $500,000
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which
default or other event or condition is to cause, or to permit the holder or
holders of such Indebtedness (or a trustee or agent on behalf of such holder or
holders) to cause, with the giving of notice if required, such Indebtedness to
become due and payable prior to its stated maturity.

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(g)           (i) The Parent, the Borrower or any
Subsidiary thereof makes an assignment for the benefit of its creditors or a
composition with its creditors, or is unable or admits in writing its inability
to pay its debts as they mature, or files a petition in bankruptcy, or
commences a federal bankruptcy proceeding in which an order for relief or such
other court order or statutory provision which authorizes the case to proceed
is entered against it, or is adjudicated insolvent or bankrupt, or petitions or
applies to any tribunal for the appointment of any custodian, receiver,
liquidator or trustee of or for it or any substantial part of its properties or
assets, or commences any proceeding relating to it under any bankruptcy,
reorganization, arrangement, readjustment of debt, receivership, dissolution or
liquidation law or statute of any jurisdiction, whether now or hereafter in
effect; or there is commenced against the Parent, the Borrower or any
Subsidiary thereof any such proceeding which shall remain undismissed for a
period of 60 days, or an order for relief, order, judgment or decree approving
the petition in any such proceeding is entered; (ii) or the Parent, the
Borrower or any Subsidiary thereof by any act or failure to act indicates its
consent to, approval of or acquiescence in any such proceeding or in the
appointment of any custodian, receiver, liquidator or trustee of or for it or
any substantial part of its properties or assets, or suffers any such appointment
to continue undischarged or unstayed for a period of 60 days; (iii) or the
Parent, the Borrower or any Subsidiary thereof takes any action for the purpose
of effecting any of the foregoing.

(h)           One or more judgments or decrees shall be
entered against the Parent, the Borrower or any Subsidiary thereof involving in
the aggregate a liability (to the extent not covered by insurance as to which
the insurer does not dispute coverage thereof) of $500,000 or
more and all such judgments or decrees shall not have been vacated, discharged,
settled, satisfied or paid, or stayed or bonded pending appeal, within 30 days
from the entry thereof.

(i)            Any of the Loan Documents shall cease to be
legal, valid and binding agreements enforceable against a Loan Party executing
the same in accordance with the respective terms thereof or shall in any way be
terminated (except in accordance with its terms) or become or be declared
ineffective or inoperative or shall in any way be challenged and thereby
deprive or deny the Lenders and the Administrative Agent of the intended
benefits thereof or they shall thereby cease substantially to have the rights,
titles, interests, remedies, powers or privileges intended to be created
thereby.

(j)            Any attachment or execution process is issued
against 10% or more of the assets of the Parent, the Borrower or any Subsidiary
thereof; or any material uninsured damage to, or loss, theft or destruction of,
any of the collateral subject to the Security Documents occurs which would
reasonably be expected to result in a Material Adverse Effect.

(k)           The suspension by the Parent, the Borrower
or any other Loan Party of all or any significant part of its business
operations or the loss, suspension, revocation or failure of the Parent, the
Borrower or any other Loan Party to renew any license or permit now held or
hereafter acquired by the Parent, the Borrower or any other Loan Party, which
loss, suspension, revocation or failure to file would reasonably be expected to
have a Material Adverse Effect.

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(l)            (A) (i) Any Employee Pension Plan is
terminated within the meaning of Title IV of ERISA, or (ii) a trustee is
appointed by the appropriate United States District Court to administer any
Employee Pension Plan, or (iii) PBGC institutes proceedings to terminate any
Employee Pension Plan or to appoint a trustee to administer any Employee
Pension Plan, or (iv) any Reportable Event occurs which the Required Lenders
determine in good faith indicates a substantial likelihood that an event
described in (i), (ii) or (iii) above will occur, or (v) the Parent, the
Borrower or any of their Affiliates incurs any Withdrawal Liability with
respect to any Multiemployer Plan, or (vi) any Multiemployer Plan enters
Reorganization, and (B) with respect to events described in (i)-(iv) above,
only if, (1) the benefit liabilities (within the meaning of Section 4001(a)(16)
of ERISA) exceed the market value of the assets in the fund under the Employee
Pension Plan by 5% or more of the Parent’s, Borrower’s or respective Affiliate’s
tangible net worth or (2) there occurs an Accumulated Funding Deficiency in
excess of $250,000 with respect to any Employee Pension Plan or (3) there
occurs any Accumulated Funding Deficiency with respect to any Employee Pension
Plan and the Parent, the Borrower or any of their Affiliates fails to correct
such Accumulated Funding Deficiency prior to the end of the correction period
within the meaning of Section 4971(c)(3) of the Code, or (4) there arises a
Lien under Section 302(f) of ERISA in favor of any Employee Pension Plan.

(m)          Any Change of Control shall occur.

(n)           There is a Material Adverse Effect.

7.2           Remedies.  If an Event of Default specified in
subsection 7.1(g) with respect to the Borrower shall occur and be continuing,
the Revolving Credit Commitments (including the obligation of the Issuing Bank
to issue Letters of Credit) shall automatically and immediately terminate, and
the Loans hereunder (with accrued interest thereon) and all other amounts owing
under this Agreement, the Notes and the other Loan Documents shall
automatically and immediately become due and payable (including, without
limitation, all Letter of Credit Obligations, whether or not the beneficiaries
of the then outstanding Letters of Credit shall have presented the documents required
thereunder).  If any other Event of
Default shall occur and be continuing, with the consent of the Required
Lenders, the Administrative Agent may, or upon the written request of the
Required Lenders, the Administrative Agent shall (a) by notice to the Borrower
declare the Revolving Credit Commitments to be terminated forthwith, whereupon
such Revolving Credit Commitments and the obligations of the applicable Lenders
to make Revolving Credit Loans and the obligation of the Issuing Bank to issue
Letters of Credit, shall immediately terminate; (b) by notice of default to the
Borrower, declare the Loans hereunder (with accrued interest thereon) and all
other amounts owing under this Agreement, the Notes and the other Loan
Documents to be due and payable forthwith, whereupon the same shall immediately
become due and payable (including, without limitation, all Letter of Credit
Obligations, whether or not the beneficiaries of the then outstanding Letters
of Credit shall have presented the documents required thereunder); (c) exercise
such remedies as may be available to the Administrative Agent and the Lenders
hereunder or under the Security Documents, the other Loan Documents or
otherwise at law or equity; and/or (d) by notice to the Borrower require the
Borrower to, and the Borrower shall thereupon, deposit in a non-interest
bearing account with the Administrative Agent, as cash collateral for its
obligations under this Agreement, the Notes and the Applications, an amount
equal to the aggregate Letter of Credit Coverage Requirement, and the Borrower
hereby pledges to the Administrative Agent and the Lenders, and grants to the

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Administrative Agent and the Lenders a security
interest in, all such cash as security for such obligations.  Amounts held in such cash collateral account
shall be applied by the Administrative Agent to the payment of drafts drawn
under the Letters of Credit, and the unused portion thereof after all the
Letters of Credit shall have expired or been fully drawn upon, if any, shall be
applied to repay the other Obligations. 
After all the Letters of Credit shall have expired or been fully drawn
upon, all Reimbursement Obligations shall have been satisfied and all other
Obligations shall have been paid in full, the balance, if any, in such cash collateral
account shall be returned to the Borrower (or such other Person or Persons as
may be lawfully entitled thereto).  The
Borrower shall execute and deliver to the Administrative Agent, for the account
of the Issuing Bank and the Letter of Credit Participants, such further
documents and instruments as the Administrative Agent may request to evidence
the creation and perfection of the within security interest in such cash
collateral account.  Except as expressly provided
above in this Section, presentment, demand, protest and all other notices of
any kind are hereby expressly waived.

SECTION
8.  THE ADMINISTRATIVE AGENT

8.1           Appointment.  Each Lender hereby irrevocably designates and
appoints PNC as administrative agent of such Lender, in each case under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes PNC, in such capacity to take such action on its behalf under the
provisions of this Agreement and the other Loan Documents and to exercise such
powers and perform such duties as are expressly delegated to the Administrative
Agent by the terms of this Agreement and the other Loan Documents, together
with such other powers as are reasonably incidental thereto.  Notwithstanding any provision to the contrary
elsewhere in this Agreement and the other Loan Documents, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set
forth herein or therein, or any fiduciary relationship with any Lender, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement and the other Loan Documents or
otherwise exist against the Administrative Agent.  PNC agrees to act as the Administrative Agent
on behalf of the Lenders to the extent provided in this Agreement and the other
Loan Documents.

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

8.3           Exculpatory
Provisions.  The Lenders hereby agree
that neither the Administrative Agent, any other Agent nor any of their
officers, directors, employees, agents, attorneys-in-fact or Affiliates shall
be (a) liable for any action lawfully taken or omitted to be taken by it or
such Person under or in connection with this Agreement or the other Loan
Documents (except for its or such Person’s own gross negligence or willful
misconduct) or (b) responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by the Borrower, any
other party or any officer thereof contained in this Agreement, the other Loan
Documents or in any certificate, report, statement or other document referred
to or provided for in, or received by the Administrative Agent or any other
Agent under

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or in connection with, this Agreement or the other
Loan Documents or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement, the Notes or the other Loan
Documents or for any failure of the Borrower or any other party to perform its
or their obligations hereunder or thereunder. 
The Administrative Agent shall not be under any obligation to any Lender
to ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or the other Loan
Documents, or to inspect the properties, books or records of the other parties
to the Loan Documents (or any of them).

8.4           Reliance by Administrative
Agent.  The Administrative Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
Note, writing, resolution, notice, consent, certificate, affidavit, letter,
cablegram, telegram, telecopy, telex or teletype message, statement, order or
other document or conversation believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person or Persons and upon advice
and statements of legal counsel (including, without limitation, counsel to the
Borrower or any other party to a Loan Document), independent accountants and
experts selected by the Administrative Agent. 
The Administrative Agent may deem and treat the payee of any Note as the
owner thereof for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent.  The Administrative Agent shall be
fully justified in failing or refusing to take any action under this Agreement
or the other Loan Documents unless it shall first receive such advice or
concurrence of the Required Lenders (or such other percentage of the Lenders as
shall be required hereunder) as it deems appropriate and it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take
any such action.  The Lenders hereby
agree that the Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement, the Notes or the
other Loan Documents in accordance with a request of the Required Lenders (or
such other percentage of Lenders as shall be required hereunder), and such
request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Notes.

8.5           Notice of Default.  The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default hereunder unless it has received notice from a Lender, the Borrower or
any other Loan Party referring to this Agreement, describing such Default or
Event of Default and stating that such notice is a “notice of default”.  In the event that the Administrative Agent
receives such a notice, the Administrative Agent shall promptly give notice
thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders (or
such other percentage of the Lenders as shall be required hereunder); provided
that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default
or Event of Default as it shall deem advisable in the best interests of the
Lenders.

8.6           Non-Reliance on
Administrative Agent and Other Lenders. 
Each Lender expressly acknowledges that neither the Administrative
Agent, any other Agent nor any of its or their officers, directors, employees,
agents, attorneys-in-fact or Affiliates has made any representations or
warranties to it and that no act by the Administrative Agent or any other Agent

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hereinafter taken, including any review of the affairs
of the Borrower and/or any other party to the Loan Documents, shall be deemed
to constitute any representation or warranty by the Administrative Agent or
such Agent to any Lender.  Each Lender
represents to the Administrative Agent that it has, independently and without
reliance upon the Administrative Agent, any other Agent or any other Lender,
and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower and the
other parties to the Loan Documents and made its own decision to make its Loans
hereunder, issue and/or participate in Letters of Credit and enter into this
Agreement and each other Loan Document to which it is a party.  Each Lender also represents that it will,
independently and without reliance upon the Administrative Agent, any other
Agent or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement
and the other Loan Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property, financial
and other condition and creditworthiness of the Borrower and the other Loan
Parties.  Except for notices, reports and
other documents expressly required to be furnished to the Lenders by the Administrative
Agent hereunder, the Administrative Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information
concerning the business, operations, property, condition (financial or
otherwise), prospects or creditworthiness of the Borrower or any other party to
the Loan Documents which may come into the possession of the Administrative
Agent or its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

8.7           Indemnification.  The Lenders agree to indemnify the
Administrative Agent and the other Agents in each of their agent capacities
hereunder and under the other Loan Documents (to the extent not reimbursed by
the Borrower and without limiting the obligation, if any, of the Borrower to do
so) ratably in accordance with each Lender’s respective Total Percentage, from
and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including, without limitation, at any time following
the payment of the Notes) be imposed on, incurred by or asserted against the
Administrative Agent or such other Agent in any way relating to or arising out
of this Agreement, the other Loan Documents, or any documents contemplated by
or referred to herein or therein or the transactions contemplated hereby or
thereby or any action taken or omitted by the Administrative Agent or such
other Agent under or in connection with any of the foregoing; provided that no
Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting solely from the Administrative Agent’s or
such other Agent’s gross negligence or willful misconduct.  The agreements in this Section 8.7 shall
survive the payment of the Notes and all other amounts payable hereunder.

8.8           Agents in Their
Individual Capacity.  Each of the
Agents and its Affiliates may make loans to, accept deposits from and generally
engage in any kind of business with the Borrower or any other party to the Loan
Documents as though such Agent were not an agent hereunder.  With respect to its Loans made or renewed by
it and any Notes issued to it, the Administrative Agent shall have the same
rights and powers under this Agreement and the other Loan Documents as any
Lender and may exercise the same as though it were not the

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administrative agent hereunder and under the other
Loan Documents, and the terms “Lender” and “Lenders” shall include the Administrative
Agent in its individual capacity.

8.9           Release of Liens.  Upon the sale or other transfer of any assets
of the Borrower or any other Loan Party in compliance with Section 6.5, and so
long as it is not aware that any Default or Event of Default shall exist, the
Administrative Agent will take such action as may be necessary to evidence the
release of the Administrative Agent’s Lien on such assets, including delivering
to the Borrower or such other Loan Party, at the cost of the Borrower,
appropriate collateral releases.

8.10         Successor
Administrative Agent.  The
Administrative Agent may resign as administrative agent hereunder and under the
other Loan Documents upon 30 days’ notice to the Lenders and the Borrower.  If the Administrative Agent shall resign,
then the Required Lenders shall appoint from among the Lenders a successor
administrative agent for the Lenders, which appointment shall be subject to
(unless a Default or Event of Default shall exist) the approval of the Borrower
(which approval shall not be unreasonably withheld or delayed) and the
appointee, whereupon such successor administrative agent shall succeed to the
rights, powers and duties of the Administrative Agent and the term “Administrative
Agent” shall mean such successor administrative agent effective upon its
appointment and the former Administrative Agent’s rights, powers and duties
shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the other parties to this Agreement
or the other Loan Documents or any holders of the Notes.  After any retiring Administrative Agent’s
resignation, the provisions of this Article 8 shall inure to its benefit as to
any actions taken or omitted to be taken by it while it was an Administrative
Agent under this Agreement and the other Loan Documents.  If any Agent other than the Administrative
Agent shall resign, such Agent shall not be replaced.

8.11         USA Patriot Act.  Each Lender or assignee or participant of a
Lender that is not incorporated under the Laws of the United States of America
or a state thereof (and is not excepted from the certification requirement
contained in Section 313 of the USA Patriot Act and the applicable regulations
because it is both (a) an Affiliate of a depository institution or foreign bank
that maintains a physical presence in the United States or foreign country, and
(b) subject to supervision by a banking authority regulating such affiliated
depository institution or foreign bank) shall deliver to the Administrative
Agent the certification, or, if applicable, recertification, certifying that
such Lender is not a “shell” and certifying to other matters as required by
Section 313 of the USA Patriot Act and the applicable regulations:  (i) within 10 days after the Closing Date,
and (ii) at such other times as are required under the USA Patriot Act.

8.12         Beneficiaries.  Except as expressly provided herein, the
provisions of this Section 8 are solely for the benefit of the Agents and the
Lenders, and the Borrower and the other Loan Parties shall not have any right
to rely on or enforce any of the provisions hereof.  In performing its functions and duties under
this Agreement and the other Loan Documents, the Administrative Agent shall act
solely as administrative agent of the Lenders and does not assume and shall not
be deemed to have assumed any obligation toward or relationship of agency or
trust with or for the Borrower or any of the other Loan Parties.

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8.13         Managing Agent and
Lead Arranger.  The Managing Agent,
in its capacity as Managing Agent, and the Lead Arranger, in its capacity as
Lead Arranger, shall have no duties or responsibilities under this Agreement or
any other Loan Document.

SECTION
9.  MISCELLANEOUS

9.1           Amendments and
Waivers.

(a)           Subject to the remaining provisions of this
Section 9.1, the Required Lenders, or the Administrative Agent with the consent
of the Required Lenders, and the Borrower (or, in the case of the other Loan
Documents, the relevant parties thereto) may from time to time enter into amendments,
extensions, supplements and replacements to and of this Agreement and the other
Loan Documents to which they are parties, and the Required Lenders may from
time to time waive compliance with a provision of any of the Loan Documents.  Subject to the remaining provisions of this
Section 9.1, no amendment, extension, supplement, replacement or waiver shall
be effective unless it is in writing and is signed by the Required Lenders or
the Administrative Agent with the consent of the Required Lenders, and the
Borrower (or, in the case of the other Loan Documents, the relevant parties
thereto).  Each waiver shall be effective
only for the specific instance and for the specific purpose for which it is
given.

(b)           The foregoing notwithstanding, no such amendment,
extension, supplement, replacement or waiver shall, directly or indirectly,
without the consent of all the Lenders:

(i)            change the Revolving Credit Commitments
(except as expressly provided in Section 2.9) or the principal amount of the
Loans which may be outstanding hereunder;

(ii)           reduce any interest rate hereunder (other
than to waive the Default Rate) or any of the fees due hereunder or under any
of the other Loan Documents (other than fees to the Administrative Agent, which
shall require the consent of the Borrower and the Administrative Agent to
change);

(iii)          postpone any scheduled payment date of
principal, interest or fees hereunder or under any of the other Loan Documents
(excluding mandatory principal prepayment of the Loans);

(iv)          release all or substantially all of the
Lenders’ security interest in the Collateral securing the Obligations;

(v)           change the definition of “Required Lenders”;

(vi)          release or discharge, or consent to any
release or discharge of (A) the Borrower as borrower under the Loan Documents
or (B) a Guarantor as guarantor (other than in connection with a sale of such
Guarantor in a transaction permitted hereunder); or permit the Borrower or any
Affiliate to assign to another Person any of its obligations under the Loan Documents;

 77
 

 

(vii)         amend this Section 9.1; or

(viii)        change Section 2.15 in a manner that would
alter the pro rata sharing provisions required thereby.

(c)           The foregoing notwithstanding, no such
amendment, extension, supplement, or replacement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent or the
Issuing Bank hereunder of any other Loan Document without the prior written
consent of the Administrative Agent or the Issuing Bank, as the case may be.

(d)           Any waiver or amendment, supplement or
modification permitted hereunder shall apply equally to each of the Lenders and
shall be binding upon the Borrower, the Lenders, the Administrative Agent and
all future holders of the Notes.  In the
case of any waiver, the Borrower, the Lenders and the Administrative Agent
shall be restored to their former position and rights hereunder and under the
other Loan Documents, and any Default or Event of Default waived shall be
deemed to be cured and not continuing; but no such waiver shall extend to any
subsequent or other Default or Event of Default, or impair any right consequent
thereon.

9.2           Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
electronic transmission, telecopy transmission or posting on a secured web
site), and, unless otherwise expressly provided herein, shall be deemed to have
been duly given or made when delivered by hand, or three days after being
deposited in the mail, postage prepaid, or the next Business Day if sent by
reputable overnight courier, postage prepaid, for delivery on the next Business
Day, or, in the case of telecopy notice, when received during normal business
hours, or in the case of electronic transmission, when received and in the case
of posting on a secured web site, upon receipt of (i) notice of such posting
and (ii) rights to access such web site, addressed as follows in the case of
the Borrower, the Administrative Agent and the Issuing Bank, and as set forth
in Schedule I or in its Assignment and Assumption in the case of
the other parties hereto, or to such other address as may be hereafter notified
by the respective parties hereto and any future holders of the Notes:

	
  If to the Borrower:

  	
   

  	
  Kenexa Technology, Inc.

  
	
   

  	
   

  	
  650 East Swedesford Road

  
	
   

  	
   

  	
  Wayne, PA 
  19087

  
	
   

  	
   

  	
  Attention:  Don
  Volk, Chief Financial Officer

  
	
   

  	
   

  	
  Telecopy: 
  (610) 971-2576

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
  Attention: 
  Cynthia Pyle Dixon, Esq.

  
	
   

  	
   

  	
  Telecopy: 
  (610) 971-2576

  

 78
 

 

 

	
  

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pepper Hamilton LLP

  
	
   

  	
   

  	
  3000 Logan Square

  
	
   

  	
   

  	
  18th and Arch
  Streets 

  
	
   

  	
   

  	
  Philadelphia, PA 
  19103 

  
	
   

  	
   

  	
  Attention: 
  Barry M. Abelson, Esq.

  
	
   

  	
   

  	
  Telecopy: 
  (215) 981-4750

  

 

provided
that failure to send a copy of such notice to Pepper Hamilton LLP shall in no
way affect, limit or invalidate any notice sent to the Borrower or the exercise
of any of the Administrative Agent’s or the Lenders’ rights or remedies
pursuant to a notice sent to the Borrower;

	
  If to the Administrative

  	
   

  	
  PNC Bank, National Association

  
	
  Agent or the
  Issuing Bank:

  	
   

  	
  1000 Westlakes Drive, Suite 200

  
	
   

  	
   

  	
  Berwyn, PA 
  19312

  
	
   

  	
   

  	
  Attention: 
  Daniel C. Takoushian

  
	
   

  	
   

  	
  Telecopy: 
  (610) 725-5799

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PNC Bank, National Association

  
	
   

  	
   

  	
  Agency Services

  
	
   

  	
   

  	
  PNC Firstside Center

  
	
   

  	
   

  	
  500 First Avenue, 4th Floor

  
	
   

  	
   

  	
  Pittsburgh, PA 
  15219

  
	
   

  	
   

  	
  Attention: 
  Lisa Pierce

  
	
   

  	
   

  	
  Telecopy: 
  (412) 762-8672

  

 

provided (a) any notice, request or demand to or upon
the Administrative Agent, the Issuing Bank or the Lenders pursuant to Sections
2.3, 2.4, 2.9 and 2.10 shall not be effective until received and (b) any notice
of a Default or Event of Default hereunder shall be sent by telecopy or
reputable overnight courier.

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

9.4           Survival of
Representations and Warranties.  All
representations and warranties made hereunder and in any document, certificate
or statement delivered pursuant hereto or in connection herewith shall survive
the execution and delivery of this Agreement, the Notes and the other Loan
Documents.

 79

 

9.5           Payment of Expenses
and Taxes.  The Borrower agrees (a)
to pay or reimburse the Administrative Agent for all of its reasonable
out-of-pocket costs and expenses incurred in connection with the development,
preparation and execution of, and the syndication and administration of, this
Agreement, the Notes, the other Loan Documents and any other documents executed
and delivered in connection herewith or therewith, and the consummation of the
transactions contemplated hereby and thereby, including, without limitation,
the reasonable fees and disbursements of counsel, (b) to pay or reimburse the
Administrative Agent for all of its reasonable out-of-pocket costs and expenses
incurred in connection with the performance of or any amendment, supplement or
modification or proposed amendment, supplement or modification to this
Agreement, the Notes and the other Loan Documents and any other documents
executed and delivered in connection therewith, including without limitation,
the reasonable fees and disbursements of counsel, (c) pay or reimburse
each Lender and each Agent for all its reasonable costs and expenses incurred
in connection with the enforcement or preservation of any rights under this
Agreement, the Notes, the other Loan Documents and any such other documents,
including, without limitation, reasonable fees and disbursements of counsel,
(d) to pay, indemnify, and hold each Lender and each Agent harmless from, any
and all recording and filing fees and any and all liabilities with respect to,
or resulting from any delay in paying, stamp, excise and other similar taxes,
if any, which may be payable or determined to be payable in connection with the
execution and delivery of, or consummation of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement, the Notes, the other Loan
Documents and any such other documents, and (e) to pay, indemnify, and
hold each Lender, each Agent and each of their respective Affiliates and the
officers, directors, employees, agents and advisors of such Persons and such
Affiliates (the “Indemnified Parties”) harmless from and against any and
all other liabilities, obligations, losses, damages, penalties, actions
(whether sounding in contract, in tort or on any other ground), judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of or in any other way arising out of or relating to, this Agreement, the
Notes, the other Loan Documents, or any such other documents contemplated by or
referred to herein or therein or any action taken by any Lender or any Agent
with respect to the foregoing (all the foregoing, collectively, the “indemnified
liabilities”), provided, that the Borrower shall have no obligation hereunder
to any Indemnified Party with respect to indemnified liabilities arising from
the gross negligence or willful misconduct of such Indemnified Party.  The agreements in this subsection shall
survive repayment of the Notes and all other amounts payable hereunder.

9.6           Successors and
Assigns.

(a)           Whenever
in this Agreement any of the parties hereto is referred to, such reference
shall be deemed to include the successors and permitted assigns of such party;
and all covenants, promises and agreements by or on behalf of the Borrower, the
Administrative Agent or the Lenders that are contained in this Agreement shall
bind and inure to the benefit of its respective successors and assigns.  The Borrower may not assign or transfer any of
its rights or obligations under this Agreement or the other Loan Documents
without the prior written consent of each Lender.

(b)           Each
Lender may, in accordance with applicable law, sell to any Lender or Affiliate
thereof and, with the consent of the Borrower (except when any Event of

 80
 

 

Default
exists) and the Administrative Agent (which consents shall not be unreasonably
withheld or delayed), to one or more other banks or financial institutions
(each, a “Purchasing Lender”) all or a part of its interests, rights and
obligations under this Agreement, the Notes and the other Loan Documents
(including all or a portion of its Revolving Credit Commitment and the Loans at
the time owing to it and the Notes held by it); provided, however,
that (i) so long as no Event of Default shall exist and be continuing, such
assignment shall be in an amount not less than $1,000,000 (or such lesser
amount as the Borrower and the Administrative Agent shall agree in their sole
discretion), unless the sum of such assigning Lender’s Total Exposure plus
Unused Revolving Credit Commitment is less than $1,000,000 in which case such
assigning Lender may transfer all, but not less than all, of its interests
hereunder and (ii) the parties to each such assignment shall execute and
deliver to the Administrative Agent and the Borrower for its acceptance (to the
extent required) and recording in the Register an Assignment and Assumption,
together with the Notes subject to such assignment and, except for assignments
by a Lender to one of its Affiliates, a processing and recordation fee of
$3,500.  Upon acceptance and recording
pursuant to paragraph (e) of this Section 9.6, from and after the effective
date specified in the applicable Assignment and Assumption, which effective
date shall be at least five Business Days after the receipt thereof by the
Administrative Agent and the Borrower (unless otherwise agreed by the
Administrative Agent), (A) such Purchasing Lender shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Assumption, have
the rights and obligations of a Lender under this Agreement and (B) the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all or the
remaining portion of an assigning Lender’s rights and obligations under this
Agreement and the other Loan Documents, such Lender shall cease to be a party
hereto but shall continue to be entitled to the benefits of subsections 2.12,
2.13, 2.14, 5.14(c) and 9.5 (to the extent that such Lender’s entitlement to
such benefits arose out of such Lender’s position as a Lender prior to the applicable
assignment).  Such Assignment and
Assumption shall be deemed to amend this Agreement to the extent, and only to
the extent, necessary to reflect the addition of such Purchasing Lender and the
resulting amounts and percentages held by the Lenders arising from the purchase
by such Purchasing Lender of all or a pro  rata portion of the
rights and obligations of such assigning Lender under this Agreement, the Notes
and the other Loan Documents.

(c)           By
executing and delivering an Assignment and Assumption, the assigning Lender
thereunder and the Purchasing Lender 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 commitment, and the outstanding
balances of its Loans, without giving effect to assignments thereof which have
not become effective, are as set forth in such Assignment and Assumption, (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 other Loan Documents, or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, the other
Loan Documents or any other instrument or document furnished pursuant hereto or
thereto, or the financial condition of the Borrower, the Parent, any other
party, or any Subsidiary thereof or the performance or observance by the
Borrower, any other Loan Party or any other party of any of its obligations
under this Agreement or the other Loan Documents or any other instrument or document
furnished pursuant hereto or

 81
 

 

thereto; (iii)
such Purchasing Lender represents and warrants that it is legally authorized to
enter into such Assignment and Assumption; (iv) such Purchasing Lender confirms
that it has received a copy of this Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 5.1 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 Assumption; (v) such
Purchasing Lender will independently and without reliance upon the
Administrative 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 and the other Loan Documents; (vi) such Purchasing Lender
appoints and authorizes the Administrative Agent to take such action as
administrative agent on its behalf and to exercise such powers under this
Agreement and the other Loan Documents as are delegated to the Administrative
Agent by the terms hereof or thereof, together with such powers as are
reasonably incidental thereto; and (vii) such Purchasing Lender agrees that it
will perform in accordance with their terms all the obligations which by the
terms of this Agreement and the other Loan Documents are required to be
performed by it as a Lender including, if it is organized under the laws of a
jurisdiction outside the United States, its obligation pursuant to Section 2.13
to deliver the forms prescribed by the Internal Revenue Service of the United
States certifying as to the Purchasing Lender’s exemption from United States
withholding taxes with respect to all payments to be made to the Purchasing
Lender under this Agreement.

(d)           The
Administrative Agent shall maintain at its offices a copy of each Assignment
and Assumption and the names and addresses of the Lenders, and the commitments
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 in the absence of manifest error and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is recorded
in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement.  The Register
shall be available for inspection by the Borrower and any Lender at any
reasonable time and from time to time upon reasonable prior notice.

(e)           Upon
its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and a Purchasing Lender (and in the case of a Purchasing
Lender that is not then a Lender or an Affiliate thereof, by the Borrower
(unless an Event of Default shall then exist) and the Administrative Agent)
together with the Note or Notes subject to such assignment and the processing
and recordation fee referred to in paragraph (b) above, the Administrative
Agent shall promptly (i) accept such Assignment and Assumption,
(ii) record the information contained therein in the Register and (iii)
give notice thereof to the Lenders. 
Within five Business Days after receipt of notice, the Borrower, at its
own expense, shall execute and deliver to the Administrative Agent, in exchange
for the surrender of the original Note or Notes (A) a new Revolving Credit Note
and Term Loan Note, to the order of such Purchasing Lender in the appropriate
amounts assumed and (B) if the assigning Lender has retained an interest hereunder,
the applicable Note or Notes in the appropriate amount(s).  Such new Note(s) shall be dated the date of
the surrendered Note(s) which such new Note(s) replace and shall otherwise be
in substantially the form of Exhibit A-1 and A-2, respectively.  Canceled Notes shall be returned to the
Borrower.

 82
 

 

(f)            Each
Lender may, in accordance with applicable law, 
sell participations to any Lender or Affiliate thereof and to one or
more banks or other Persons (each a “Participant”), in each case in any
Loan owing to such Lender, any Note held by such Lender, any commitment of such
Lender, or any other interest of such Lender hereunder and under the other Loan
Documents, provided, however, that (i) such Lender’s
obligations under this Agreement to the other parties to this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) such
Lender shall remain the holder of any such Note for all purposes under this
Agreement and the other Loan Documents, (iv) the Borrower, the Lenders and
the Administrative Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this
Agreement and the other Loan Documents, (v) in any proceeding under the
Bankruptcy Code, such Lender shall be, to the extent permitted by law, the sole
representative with respect to the obligations held in the name of such Lender,
whether for its own account or for the account of any Participant and
(vi) such Lender shall retain the sole right to approve, without the
consent of any Participant, any amendment, modification or waiver of any
provision of this Agreement or the Notes held by such Lender or any other Loan
Document, other than with respect to the matters described in clauses (i)
through (viii) of subsection 9.1(b).

(g)           If
amounts outstanding under this Agreement and the Notes are due or unpaid, or
shall have been declared or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall be deemed to have the
right of set-off in respect of its participating interest in amounts owing
under this Agreement and any Note to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement or any Note, provided that in purchasing such participation
such Participant shall be deemed to have agreed to share with the Lenders the
proceeds thereof as provided in Section 9.7 
The Borrower also agrees that each Participant shall be entitled to the
benefits of subsections 2.12, 2.13, 2.14, 5.14(c) and 9.5 with respect to its
participation in the commitments and the Loans outstanding from time to time; provided,
that no Participant shall be entitled to receive any greater amount pursuant to
such subsections than the assigning Lender would have been entitled to receive
in respect of the amount of the participation transferred by such assigning
Lender to such Participant had no such transfer occurred.

(h)           If
any Participant of a Lender is organized under the laws of any jurisdiction
other than the United States or any state thereof, the assigning Lender,
concurrently with the sale of a participating interest to such Participant,
shall cause such Participant (i) to represent to the assigning Lender (for the
benefit of the assigning Lender and the other Lenders), the Administrative
Agent and the Borrower that under applicable law and treaties no taxes will be
required to be withheld by the Administrative Agent, the Borrower or the
assigning Lender with respect to any payments to be made to such Participant in
respect of its participation in the Loans and Letters of Credit and (ii) to
agree (for the benefit of the assigning Lender, the other Lenders, the
Administrative Agent and the Borrower) that it will deliver the tax forms and
other documents required to be delivered pursuant to subsection 2.13(b) and
comply from time to time with all applicable U.S. laws and regulations with
respect to withholding tax exemptions.

(i)            Notwithstanding
any other provision contained in this Agreement or any other Loan Document to
the contrary, any Lender may, without obtaining any consents

 83
 

 

from any of
the parties hereto, at any time (i) assign all or any portion of the Loans or
Notes held by it to any Federal Reserve Bank or the United States Treasury as
collateral security pursuant to Regulation A of the Board of Governors of the
Federal Reserve System and any Operating Circular issued by such Federal
Reserve Bank and (ii) in the case of a Lender that is or owns, controls or
serves as originator for a fund, trust or similar entity, assign or pledge all
or any portion of the Loans or Notes held by it to a trustee under any
indenture to which such Lender is a party or to the lenders to such Lender for
collateral security purposes, provided that any payment in respect of such
assigned Loans or Notes made by the Borrower to or for the account of the
assigning or pledging Lender in accordance with the terms of this Agreement
shall satisfy the Borrower’s obligations hereunder in respect to such assigned
Loans or Notes to the extent of such payment. 
No such assignment shall release the assigning Lender from its
obligations hereunder.

9.7           Adjustments; Set-off.  (a) 
Except as otherwise expressly provided herein, if any Lender (a “benefited
Lender”) shall at any time receive any payment of all or part of its Loans
or the Reimbursement Obligations owing to it, or interest thereon, or receive
any collateral in respect thereof (whether voluntarily or involuntarily, by
set-off, pursuant to events or proceedings of the nature referred to in
subsection 7.1(g), or otherwise), in a greater proportion than any such payment
to or collateral received by any other Lender, if any, in respect of such other
Lender’s Loans or the Reimbursement Obligations owing to it, or interest
thereon, such benefited Lender shall purchase for cash from the other Lenders
such portion of each such other Lender’s Loans or the Reimbursement Obligations
owing to it, or shall provide such other Lenders with the benefits of any such
collateral, or the proceeds thereof, as shall be necessary to cause such
benefited Lender to share the excess payment or benefits of such collateral or
proceeds ratably with each of the Lenders; provided, however,
that if all or any portion of such excess payment or benefits is thereafter
recovered from such benefited Lender, such purchase shall be rescinded, and the
purchase price and benefits returned, to the extent of such recovery, but
without interest.  The Borrower agrees
that each Lender so purchasing a portion of another Lender’s Loans may exercise
all rights of payment (including, without limitation, rights of set-off) with
respect to such portion as fully as if such Lender were the direct holder of
such portion.

(b)           In
addition to any rights and remedies of the Lenders provided by law, upon the
occurrence and during the continuance of an Event of Default, each Lender shall
have the right, without prior notice to the Borrower, any such notice being expressly
waived by the Borrower to the extent permitted by applicable law, upon any
amount becoming due and payable by the Borrower hereunder or under the Notes or
the other Loan Document (whether at the stated maturity, by acceleration or
otherwise) to set-off and appropriate and apply against such amount any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Lender to or for the credit or the
account of the Borrower.  Each Lender
agrees promptly to notify the Borrower and the Administrative Agent after any
such set-off and application made by such Lender, provided that the failure to
give such notice shall not affect the validity of such set-off and application.

9.8           Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts, and
all of said counterparts

 84
 

 

taken together shall be deemed to constitute one and
the same instrument.  A set of the copies
of this Agreement signed by all the parties shall be lodged with the Borrower
and the Administrative Agent.

9.9           Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

9.10         Integration.  This Agreement and the other Loan Documents
represent the agreement of the parties hereto with respect to the subject
matter hereof, and there are no promises, undertakings, representations or
warranties by the Administrative Agent or any Lender relative to the subject
matter hereof not expressly set forth or referred to herein or in the other
Loan Documents.

9.11         GOVERNING LAW.  THIS AGREEMENT AND THE NOTES, AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT AND THE NOTES, SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
COMMONWEALTH OF PENNSYLVANIA.

9.12         Confidentiality.  Each of the Lenders severally agrees that it
will use reasonable precautions to keep confidential, in accordance with its
customary procedures for handling confidential information of the same nature
any non-public information supplied to it by the Borrower or any other Loan
Party pursuant to the Loan Documents; provided that nothing herein shall
prevent any Lender from disclosing any such information (a) to the
Administrative Agent or any other Lender, (b) to any prospective assignee or
participant in connection with any assignment or participation (or proposed
assignment or participation) of Loans or commitments permitted by this
Agreement so long as such assignee or participant is notified as to the
confidential nature of such information and agrees to keep such information
confidential, (c) to its employees, directors, agents, attorneys, accountants
and other professional advisors, rating agencies, and funding sources, (d) upon
the request or demand of any Governmental Authority having jurisdiction over
such Lender, (e) in response to any order of any court or other Governmental
Authority or as may otherwise be required pursuant to any Requirement of Law,
(f) which has been publicly disclosed other than in breach of this Agreement or
(g) in connection with the exercise of any remedy hereunder or under the Notes
or other Loan Documents.

9.13         Submission To
Jurisdiction; Waivers.  The Borrower
hereby irrevocably and unconditionally:

(a)           submits
for itself and its property in any legal action or proceeding relating to this
Agreement, the Notes or the other Loan Documents, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general
jurisdiction of the courts of the Commonwealth of Pennsylvania, the courts of
the United States of America for the Eastern District of Pennsylvania, and
appellate courts from any thereof;

 85
 

 

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

(c)           waives
and hereby acknowledges that it is estopped from raising any objection based on
forum non conveniens, any claim that any of the above-referenced courts
lack proper venue or any objection that any of such courts lack personal
jurisdiction over it so as to prohibit such courts from adjudicating any issues
raised in a complaint filed with such courts against the Borrower concerning
this Agreement or the other Loan Documents;

(d)           acknowledges
and agrees that the choice of forum contained in this Section 9.13 shall not be
deemed to preclude the enforcement of any judgment obtained in any forum or the
taking of any action under the Loan Documents to enforce the same in any
appropriate jurisdiction;

(e)           agrees
that service of process in any such action or proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to the Borrower at its address set
forth in Section 9.2 or at such other address of which the Administrative Agent
shall have been notified pursuant thereto;

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

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

9.14         Acknowledgments.  The Borrower hereby acknowledges that:

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

(b)           neither
the Administrative Agent nor any Lender has any fiduciary relationship to the
Borrower or any other party to the Loan Documents (or any of them) and the
relationship hereunder between the Administrative Agent and Lenders, on the one
hand, and the Borrower and its Affiliates parties to the Loan Documents, on the
other hand, is solely that of debtor and creditor; and

(c)           no
joint venture exists among the Borrower and its Affiliates parties to the Loan
Documents (or any of them) and the Lenders or the Agents.

9.15         USA PATRIOT ACT.  Each Lender that is subject to the
requirements of the USA Patriot Act hereby notifies the Borrower and the other
Loan Parties that pursuant to the requirements of the USA Patriot Act, it is
required to obtain, verify and record information that identifies the Borrower
and such other Loan Parties, which information includes the name and address of
the Borrower and such other Loan Parties and other information that will allow
such

 86
 

 

Lender to identify the Borrower and such other Loan
Parties in accordance with the USA Patriot Act.

9.16         WAIVERS OF JURY TRIAL.  THE BORROWER, THE ADMINISTRATIVE AGENT AND
EACH LENDER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, THE NOTES OR ANY OTHER
LOAN DOCUMENT AND FOR ANY MANDATORY COUNTERCLAIM THEREIN.

[Signature Pages
to Follow]

 87

 

IN WITNESS WHEREOF, the parties hereto, by their officers thereunto
duly authorized, have executed this Agreement as of the day and year first
above written.

	
   

  	
  KENEXA TECHNOLOGY, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DONALD F.
  VOLK

  	
   

  	
   

  
	
   

  	
  Name: Donald F. Volk

  	
   

  
	
   

  	
  Title: Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  as Administrative Agent, Issuing Bank and a

  Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DANIEL C.
  TAKOUSHIAN

  	
   

  	
   

  
	
   

  	
  Name: Daniel C. Takoushian

  	
   

  
	
   

  	
  Title: Vice President

  	
   

  

 

Schedule 2.1(b)

Term Loan Amortization Schedule 

	
  Payment Date

  	
   

  	
  Payment Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  January 1, 2007

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
  April 1, 2007

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
  July 1, 2007

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
  October 1, 2007

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
  January 1, 2008

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  April 1, 2008

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  July 1, 2008

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  October 1, 2008

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  January 1, 2009

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  April 1, 2009

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  July 1, 2009

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  October 1, 2009

  	
   

  	
  $

  	
  1,875,000

  	
   

  
	
  January 1, 2010

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  April 1, 2010

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  July, 1, 2010

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  October 1, 2010

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  January 1, 2011

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  April 1, 2011

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  July 1, 2011

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  October 1, 2011

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  January 1, 2012

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  April 1, 2012

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  July 1, 2012

  	
   

  	
  $

  	
  2,500,000

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  $

  	
  2,500,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]