CREDIT AGREEMENT Dated as of November 28, 2001, as Amended and Restated as of April 10, 2002, as further Amended and Restated as of December 22, 2005, Among COMPASS MINERALS INTERNATIONAL, INC. (formerly known as SALT HOLDINGS CORPORATION); COMPASS...

EXECUTION COPY

EXHIBIT 10.1

[Confidential materials omitted and filed separately with the Securities and Exchange Commission. Asterisks denote omissions.]

CREDIT AGREEMENT

Dated as of November 28, 2001,

as Amended and Restated as of April 10, 2002, as further Amended and Restated as of

December 22, 2005,

Among

COMPASS MINERALS INTERNATIONAL, INC.

(formerly known as SALT HOLDINGS CORPORATION);

COMPASS MINERALS GROUP, INC.,

as US Borrower;

SIFTO CANADA CORP.,

as Canadian Borrower;

SALT UNION LIMITED,

as UK Borrower;

THE LENDERS PARTY HERETO;

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent;

Calyon New York Branch,

as Syndication Agent;

Bank of America, N.A.,

as Co-Documentation Agent

The Bank of Nova Scotia,

as Co-Documentation Agent

X.X. XXXXXX SECURITIES INC.,

as Co-Lead Arranger and Joint Bookrunner

XXXXXXX SACHS CREDIT PARTNERS L.P.,

as Co-Lead Arranger and Joint Bookrunner

TABLE OF CONTENTS

Page

ARTICLE I

SECTION 1.01. Definitions...........................................................................................................1

SECTION 1.02. Classification of Loans and Borrowings.......................................................46

SECTION 1.03. Terms Generally................................................................................................46

ARTICLE II

Amount and Terms of Credit

SECTION 2.01. Commitments....................................................................................................46

SECTION 2.02. Loans and Borrowings....................................................................................47

SECTION 2.03. Requests for Borrowings................................................................................48

SECTION 2.04. Swingline Loans...............................................................................................49

SECTION 2.05. Letters of Credit................................................................................................51

SECTION 2.06. Funding of Borrowings...................................................................................56

SECTION 2.07. Canadian Bankers’ Acceptances...................................................................57

SECTION 2.08. Interest Elections..............................................................................................61

SECTION 2.09. Termination and Reduction of Commitments...............................................63

SECTION 2.10. Repayment of Loans and B/As; Evidence of Debt.....................................64

SECTION 2.11. Voluntary Prepayments...................................................................................65

SECTION 2.12. Mandatory Repayments..................................................................................66

SECTION 2.13. Fees.....................................................................................................................70

SECTION 2.14. Interest...............................................................................................................72

SECTION 2.15. Alternate Rate of Interest................................................................................73

SECTION 2.16. Increased Costs.................................................................................................74

SECTION 2.17. Break Funding Payments.................................................................................75

SECTION 2.18. Taxes...................................................................................................................75

SECTION 2.19. Payments Generally; Pro Rata Treatment; Sharing of Set-offs..................77

SECTION 2.20. Mitigation Obligations; Replacement of Lenders........................................79

SECTION 2.21. Collection Allocation Mechanism..................................................................80

SECTION 2.22. Redenomination of Sterling.............................................................................82

SECTION 2.23. Incremental Term Loans...................................................................................83

SECTION 2.24. Additional Reserve Costs................................................................................85

SECTION 2.25. Change in Law...................................................................................................85

ARTICLE III

Conditions Precedent to Credit

SECTION 3.01. Execution of Agreement...................................................................................86

SECTION 3.02. Officer’s Certificate...........................................................................................86

Contents, p.ii

SECTION 3.03. Opinions of Counsel..........................................................................................86

SECTION 3.04. Company Documents; Proceedings................................................................87

SECTION 3.05. Adverse Change, etc.........................................................................................87

SECTION 3.06. Litigation.............................................................................................................87

SECTION 3.07. Approvals...........................................................................................................87

SECTION 3.08. Consummation of the Debt Tender Offer, etc................................................88

SECTION 3.09. US Collateral and Guaranty Agreement; Foreign Pledge Agreements......88

SECTION 3.10. US Collateral and Guaranty Agreement; Foreign Security Agreements...89

SECTION 3.11. US Collateral Assignment................................................................................90

SECTION 3.12. Foreign Guaranty...............................................................................................90

SECTION 3.13. Mortgages..........................................................................................................90

SECTION 3.14. Consent Letter...................................................................................................92

SECTION 3.15. Insurance Certificates.......................................................................................92

SECTION 3.16. Historical Financial Statements; Pro Forma Financial Statements;

Projections...........................................................................................92

SECTION 3.17. Payment of Fees................................................................................................93

SECTION 3.18. Payment of Existing Credit Agreement Indebtedness.................................93

ARTICLE IV

Conditions Precedent to All Credit Events

SECTION 4.01. No Default; Representations and Warranties................................................93

SECTION 4.02. Notice of Borrowing; Letter of Credit Request..............................................94

ARTICLE V

Representations and Warranties

SECTION 5.01. Company Status.................................................................................................94

SECTION 5.02. Company Power and Authority.......................................................................95

SECTION 5.03. No Violation........................................................................................................95

SECTION 5.04. Litigation.............................................................................................................95

SECTION 5.05. Use of Proceeds; Margin Regulations...........................................................96

SECTION 5.06. Governmental Approvals.................................................................................96

SECTION 5.07. Investment Company Act................................................................................96

SECTION 5.08. Public Utility Holding Company Act..............................................................96

SECTION 5.09. True and Complete Disclosure........................................................................96

SECTION 5.10. Financial Condition; Financial Statements; Undisclosed Liabilities;

Projections............................................................................................97

SECTION 5.11. The Security Interests.......................................................................................98

SECTION 5.12. Pension Matters.................................................................................................99

SECTION 5.13. Capitalization.....................................................................................................100

SECTION 5.14. Subsidiaries.......................................................................................................100

SECTION 5.15. Intellectual Property, etc.................................................................................100

SECTION 5.16. Compliance with Statutes, etc........................................................................100

SECTION 5.17. Environmental Matters....................................................................................101

Contents, p.iii

SECTION 5.18. Properties.............................................................................................................101

SECTION 5.19. Labor Relations...................................................................................................101

SECTION 5.20. Tax Returns and Payments...............................................................................102

SECTION 5.21. Insurance.............................................................................................................102

SECTION 5.22. The Transaction.................................................................................................102

SECTION 5.23. Subordination.....................................................................................................103

ARTICLE VI

Affirmative Covenants

SECTION 6.01. Information Covenants.......................................................................................103

SECTION 6.02. Books, Records and Inspections......................................................................106

SECTION 6.03. Insurance..............................................................................................................107

SECTION 6.04. Payment of Taxes................................................................................................108

SECTION 6.05. Corporate Franchises........................................................................................ 108

SECTION 6.06. Compliance with Statutes, etc.......................................................................... 108

SECTION 6.07. Compliance with Environmental Laws............................................................ 108

SECTION 6.08. Pension Matters..................................................................................................108

SECTION 6.09. Good Repair.........................................................................................................109

SECTION 6.10. End of Fiscal Years; Fiscal Quarters................................................................109

SECTION 6.11. Additional Security; Further Assurances.......................................................109

SECTION 6.12. Use of Proceeds..................................................................................................111

SECTION 6.13. Permitted Acquisitions......................................................................................111

SECTION 6.14. Performance of Obligations..............................................................................113

SECTION 6.15. Maintenance of Company Separateness........................................................113

SECTION 6.16. Contributions......................................................................................................113

SECTION 6.17. Holdings Notes and Permitted Holdings Refinancing Indebtedness........113

ARTICLE VII

Negative Covenants

SECTION 7.01. Business...............................................................................................................114

SECTION 7.02. Consolidation; Merger; Sale or Purchase of Assets; etc.............................115

SECTION 7.03. Liens.....................................................................................................................118

SECTION 7.04. Indebtedness......................................................................................................121

SECTION 7.05. Advances; Investments; Loans......................................................................124

SECTION 7.06. Dividends, etc....................................................................................................126

SECTION 7.07. Transactions with Affiliates and Unrestricted Subsidiaries.......................129

SECTION 7.08. Designated Senior Debt...................................................................................130

SECTION 7.09. Consolidated Interest Coverage Ratio...........................................................130

SECTION 7.10. Adjusted Total Leverage Ratio.......................................................................130

SECTION 7.11. Capital Expenditures.........................................................................................130

SECTION 7.12. Limitation on Voluntary Payments and Modifications of Indebtedness;

Modifications of Certificate of Incorporation, By-Laws and Certain

Other Agreements; Issuances of Capital Stock; etc...........................132

Contents, p.iv

SECTION 7.13. Limitation on Issuance of Capital Stock...........................................................133

SECTION 7.14. Limitation on Certain Restrictions on Subsidiaries........................................134

SECTION 7.15. Limitation on the Creation of Subsidiaries, Joint Ventures and

Unrestricted Subsidiaries....................................................................135

ARTICLE VIII

Events of Default

SECTION 8.01. Payments..............................................................................................................136

SECTION 8.02. Representations, etc...........................................................................................136

SECTION 8.03. Covenants............................................................................................................136

SECTION 8.04. Default Under Other Agreements.....................................................................136

SECTION 8.05. Bankruptcy, etc....................................................................................................137

SECTION 8.06. Pension Matters..................................................................................................137

SECTION 8.07. Security Documents...........................................................................................138

SECTION 8.08. Guaranties............................................................................................................138

SECTION 8.09. Judgments............................................................................................................138

SECTION 8.10. Ownership............................................................................................................138

SECTION 8.11. Remedies Blockage.............................................................................................138

ARTICLE IX

Administrative Agent

SECTION 9.01. Appointment.......................................................................................................139

SECTION 9.02. Delegation of Duties..........................................................................................140

SECTION 9.03. Exculpatory Provisions......................................................................................140

SECTION 9.04. Reliance by the Administrative Agent............................................................141

SECTION 9.05. Notice of Default.................................................................................................141

SECTION 9.06. Nonreliance on the Administrative Agent and Other Lenders....................141

SECTION 9.07. Indemnification...................................................................................................142

SECTION 9.08. Administrative Agent in its Individual Capacity...........................................142

SECTION 9.09. Holders.................................................................................................................142

SECTION 9.10. Resignation of the Administrative Agent.......................................................143

SECTION 9.11. Power of Attorney..............................................................................................143

SECTION 9.12. Trustee Provisions.............................................................................................144

ARTICLE X

Miscellaneous

SECTION 10.01. Payment of Expenses, etc...............................................................................144

SECTION 10.02. Right of Setoff..................................................................................................145

SECTION 10.03. Notices; Authorized Representative............................................................146

SECTION 10.04. Benefit of Agreement......................................................................................147

SECTION 10.05. No Waiver; Remedies Cumulative................................................................151

Contents, p.v

SECTION 10.06. Calculations; Computations..........................................................................151

SECTION 10.07. GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE..........153

SECTION 10.08. Counterparts....................................................................................................155

SECTION 10.09. [Reserved]........................................................................................................155

SECTION 10.10. Headings Descriptive.....................................................................................155

SECTION 10.11. Amendment or Waiver, etc............................................................................155

SECTION 10.12. Survival.............................................................................................................157

SECTION 10.13. Domicile of Loans and Commitments...........................................................157

SECTION 10.14. Confidentiality.................................................................................................157

SECTION 10.15. Waiver of Jury Trial........................................................................................158

SECTION 10.16. Limitation on Additional Amounts, etc.......................................................158

SECTION 10.17. Judgment Currency.........................................................................................158

SECTION 10.18. Immunity...........................................................................................................159

SECTION 10.19. USA Patriot Act..............................................................................................159

Contents, x.xx

SCHEDULE I

List of Lenders and Commitments

SCHEDULE II

Tax Returns and Payments

SCHEDULE III

Retained Existing Indebtedness

SCHEDULE IV

Real Properties

SCHEDULE V

Subsidiaries

SCHEDULE VI

Insurance

SCHEDULE VII

Existing Liens

SCHEDULE VIII

Existing Investments

SCHEDULE 2.05

Existing Letters of Credit

SCHEDULE 5.01

Permitted Encumbrances

SCHEDULE 5.04

Litigation

SCHEDULE 5.13

Capitalization

SCHEDULE 5.15

Intellectual Property, etc.

SCHEDULE 5.16

Compliance with Statutes, etc.

SCHEDULE 5.17

Environmental Matters

SCHEDULE 5.19

Labor Relations

SCHEDULE 7.14

Limitation on Certain Restrictions on Subsidiaries

SCHEDULE 10.03

Addresses

EXHIBIT A-1

Form of Term Note

EXHIBIT A-2A

Form of US Revolving Note

EXHIBIT A-2B

Form of Global Revolving Note

EXHIBIT A-3

Form of Swingline Note

EXHIBIT B-1

Form of Opinion of Xxxxx Xxxx LLP, special counsel to the Credit Parties

EXHIBIT B-2

Form of Opinion of Fasken Xxxxxxxxx DuMoulin LLP, special Canadian counsel

EXHIBIT B-3

Form of Opinion of English counsel

EXHIBIT C

Form of Officer’s Certificate

EXHIBIT D

Form of US Collateral and Guaranty Agreement

EXHIBIT E

Form of US Collateral Assignment

EXHIBIT F

Form of Foreign Guaranty

EXHIBIT G

Form of Consent Letter

EXHIBIT H

Form of Assignment and Assumption Agreement

EXHIBIT I

Form of Intercompany Note

EXHIBIT J

Mandatory Costs Rate

EXHIBIT K

White Salt Sale Description

CREDIT AGREEMENT dated as of November 28, 2001, as amended and restated as of April 10, 2002, as further amended and restated as of December 22, 2005, among COMPASS MINERALS INTERNATIONAL, INC. (formerly known as SALT HOLDINGS CORPORATION), COMPASS MINERALS GROUP, INC., SIFTO CANADA CORP., SALT UNION LIMITED, the LENDERS from time to time party hereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

W I T N E S S E T H :

WHEREAS, subject to and upon the terms and conditions set forth herein, the Lenders are willing to make available to the respective Borrowers the respective credit facilities provided for herein;

WHEREAS, subject to and upon the terms and conditions set forth herein, the Existing Credit Agreement is hereby amended and restated, effective as of the Effective Date, to read in its entirety as set forth herein;

NOW, THEREFORE, it is agreed:

ARTICLE I

Definitions

SECTION 1.01. Definitions. As used herein, the following terms shall have the meanings herein specified unless the context otherwise requires:

“Acquired Business” shall mean any Person or business, division or product line acquired pursuant to a Permitted Acquisition.

“Acquired EBITDA” shall mean, for any Acquired Business for any period, the Consolidated EBITDA as determined for such Acquired Business on a basis substantially the same (with necessary reference changes) as provided in the first sentence of the definition of Consolidated EBITDA contained herein, except that all references therein and in the component definitions used in determining Consolidated EBITDA to “the US Borrower and its Subsidiaries” shall be deemed to be references to the respective Acquired Business. All calculations of Acquired EBITDA shall be made on a Pro Forma Basis (for such purpose treating (i) each reference to “Consolidated EBITDA” contained in the definition of Pro Forma Basis as if it were a reference to “Acquired EBITDA,” (ii) clause (v) of said definition as if same applied to a determination of Acquired EBITDA for purposes of Section 7.11, and (iii) the text “the last two fiscal quarters comprising the respective Test Period” appearing in clause (v) of said definition as if same were a reference to “the trailing twelve month period immediately preceding the respective Permitted Acquisition” and disregarding subclauses (B) and (C) of clause (v) of said definition).

“Acquired Person” shall have the meaning provided in the definition of Permitted Acquisition.

“Additional Lender” shall have the meaning provided in Section 2.23(b).

“Additional Security and Guaranty Documents” shall have the meaning provided in Section 6.11(b).

“Additional Senior Subordinated Note Documents” shall mean the Additional Senior Subordinated Notes and all other documents executed and delivered with respect to the Additional Senior Subordinated Notes.

“Additional Senior Subordinated Notes” shall mean unsecured senior subordinated notes of the US Borrower (i) that are subordinated to the Loan Document Obligations (A) to the same extent as, or to a greater extent than, the Existing Senior Subordinated Notes are subordinated to the Loan Document Obligations or (B) on terms that are market terms on the date of issuance and reasonably satisfactory to the Administrative Agent, (ii) that do not require any scheduled payment of principal (including pursuant to a sinking fund obligation) or mandatory redemption or redemption at the option of the holders thereof (except for redemptions in respect of asset sales and changes in control on terms that are market terms on the date of issuance) prior to the date that is 91 days after the Term Loan Maturity Date or (unless otherwise provided in the applicable Incremental Term Loan Amendment), if such Indebtedness is incurred after the US Borrower has obtained any Incremental Term Loans or while any Commitments from Additional Lenders to make Incremental Term Loans remain in effect, 91 days after the maturity date for such Incremental Term Loans, unless all such Incremental Term Loans have been repaid in full, (iii) that contain payment blockage provisions that are (A) no less favorable to the Lenders than the payment blockage provisions of the Existing Senior Subordinated Notes or (B) on terms that are market terms on the date of issuance and reasonably satisfactory to the Administrative Agent and (iv) that otherwise contain terms and conditions (including the maturity thereof, the interest rate applicable thereto (provided that Additional Senior Subordinated Notes may bear interest at a rate or be issued at a discount that together result in a yield that is a market yield at the time of issuance thereof), amortization, defaults, voting rights, covenants and events of default) that are on terms that are market terms on the date of issuance.

“Adjusted Consolidated Net Income” shall mean, for any period, Consolidated Net Income for such period plus, without duplication, (a) the sum of the amount of all non-cash charges (including depreciation, amortization, deferred tax expense and non-cash interest expense but excluding any non-cash charges reflected in Adjusted Consolidated Working Capital) and non-cash losses that were included in arriving at Consolidated Net Income for such period less (b) the amount of all non-cash gains (exclusive of items reflected in Adjusted Consolidated Working Capital) included in arriving at Consolidated Net Income for such period.

“Adjusted Consolidated Working Capital” shall mean, at any time, Consolidated Current Assets (but excluding therefrom all cash and Cash Equivalents) less Consolidated Current Liabilities.

“Adjusted Total Leverage Ratio” shall mean, on any date, the ratio of (a) Consolidated Debt on such date to (b) Consolidated EBITDA for the Test Period most recently ended on or prior to such date. All calculations of the Adjusted Total Leverage Ratio

shall be made on a Pro Forma Basis, with determinations of Adjusted Total Leverage Ratio to give effect to all adjustments (including those specified in clauses (iv) and (v)) contained in the definition of “Pro Forma Basis” contained herein.

“Administrative Agent” shall mean JPMCB, in its capacity as administrative agent for the Lenders hereunder (and any successor thereto appointed pursuant to Section 9.10), or, as applicable, such Affiliates thereof as it shall from time to time designate for the purpose of performing its obligations hereunder in such capacity, including initially (a) with respect to a Loan or Borrowing made to the UK Borrower, X.X. Xxxxxx Europe Limited, and (b) with respect to a Loan or Borrowing made to, or a B/A Drawing drawn by, the Canadian Borrower, JPMorgan Chase Bank, N.A., Toronto Branch. References to the “Administrative Agent” shall also include X.X. Xxxxxx Europe Limited, JPMorgan Chase Bank, N.A., Toronto Branch, or any other Affiliate of JPMCB or any other person designated by JPMCB, in each case acting in its capacity as “Security Trustee”, “Trustee”, “Agent” or “Collateral Agent” under any Security Document relating to collateral provided under the laws of any United Kingdom jurisdiction or Canadian jurisdiction, or acting in any similar capacity under any other Security Document under the laws of the United States or any other jurisdiction.

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

“Affected Loans” shall have the meaning provided in Section 2.12(f).

“Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with such Person; provided, however, that, for purposes of Section 7.07, an Affiliate of Holdings shall include any Person that directly or indirectly owns more than 5% of any class of the capital stock of Holdings and any officer or director of Holdings or any such Person.

“Agent” shall mean any or all of Calyon New York Branch, Bank of America, N.A., and The Bank of Nova Scotia.

“Agreement” shall mean this Credit Agreement, as the same may be from time to time modified, restated, amended and/or supplemented.

“Applicable Excess Cash Flow Percentage” shall mean, with respect to any Excess Cash Flow Payment Date, 75%; provided that so long as no Default or Event of Default is then in existence, if, on the last day of the relevant Excess Cash Flow Payment Period, the Adjusted Total Leverage Ratio for the Test Period then most recently ended (as established pursuant to the officer’s certificate delivered (or required to be delivered) pursuant to Section 6.01(d)) (a) is less than or equal to 3.25:1.00 but greater than 2.75:1.00, then the Applicable Excess Cash Flow Percentage shall instead be 50% or (b) is less than or equal to 2.75:1.00, then the Applicable Excess Cash Flow Percentage shall instead be 0%.

“Applicable Rate” shall mean, initially, a percentage per annum equal to (a) in the case of Term Loans maintained as (i) Base Rate Loans, 0.50% and (ii) Eurodollar Loans, 1.50%, (b) in the case of Revolving Loans maintained as (i) Base Rate Loans, 0.75%, (ii) Canadian Base

Rate Loans, 0.75%, (iii) Eurodollar Loans, 1.75% and (iv) Canadian Prime Rate Loans, 0.75%, (c) in the case of Swingline Loans, 0.75%, (d) in the case of B/A Drawings, 1.75%, and (e) in the case of the Commitment Fee, 0.375%. From and after each day of delivery of any certificate and financial statements delivered in accordance with the first sentence of the following paragraph indicating a different margin than that described in the immediately preceding sentence (each, a “Start Date”) to and including the applicable End Date described below, the Applicable Rate for Term Loans shall (subject to any adjustment pursuant to the immediately succeeding paragraph) be that set forth below under the caption “Eurodollar Term Loans” or “Base Rate Term Loans”, as applicable, and the Applicable Rate for Revolving Loans, Swingline Loans, Letters of Credit, B/A Drawings and Commitment Fees shall (subject to any adjustment pursuant to the immediately succeeding paragraph) be that set forth below under the caption “Eurodollar Revolving Loans and B/A Drawings”, “Base Rate Revolving Loans, Canadian Base Rate Loans and Canadian Prime Rate Loans” or “Commitment Fee”, as applicable, in each case opposite the Total Leverage Ratio indicated to have been achieved in any certificate delivered in accordance with the following sentence:

Total Leverage Ratio	Eurodollar Term Loans	Eurodollar Revolving Loans and B/A Drawings	Base Rate Term Loans	Base Rate Revolving Loans, Canadian Base Rate Loans and Canadian Prime Rate Loans	Commitment Fee
Greater than 3.25:1.00	1.75%	2.00%	0.75%	1.00%	0.50%
Less than or equal to 3.25:1.00 but greater than 1.75:1.00	1.50%	1.75%	0.50%	0.75%	0.375%
Less than or equal to 1.75:1.00	1.50%	1.50%	0.50%	0.50%	0.25%

The Total Leverage Ratio shall be determined based on the delivery of a certificate of the US Borrower by an Authorized Officer of the US Borrower to the Administrative Agent (with a copy to be furnished by the Administrative Agent to each Lender), which certificate shall be accompanied by the financial statements required by Section 6.01(a) or (b) and shall set forth the calculation of the Total Leverage Ratio (based on such financial statements) as at the last day of the Test Period ended immediately prior to the relevant Start Date and the Applicable Rates that shall be thereafter applicable (until same are changed or cease to apply in accordance with the following sentences). The Applicable Rates so determined shall apply, except as set forth in the next succeeding sentence, from the relevant Start Date to the earliest of (a) the date on which the next certificate is delivered to the Administrative Agent or (b) the date that is 45 days following the last day of the Test Period in which the previous Start

Date occurred or, if such Test Period is a fiscal year of the US Borrower, 90 days following such last day (such earliest date, the “End Date”), at which time, if no certificate has been delivered to the Administrative Agent indicating an entitlement to new Applicable Rates (and thus commencing a new Start Date), the Applicable Rates shall be those set forth in the table above determined as if the Total Leverage Ratio were greater than 3.25:1.00 (such Applicable Rates as so determined, the “Highest Applicable Rates”). Notwithstanding anything to the contrary contained above in this definition, (a) the Applicable Rates shall be the Highest Applicable Rates at all times during which there shall exist any Event of Default and (b) prior to the date of delivery of the financial statements pursuant to Section 6.01(b) for the fiscal year ended December 31, 2005, in no event shall the Applicable Rates be less than those described in the first sentence of this definition.

“Approved Fund” shall have the meaning provided in Section 10.04(b).

“Asset Sale” shall mean any sale, transfer or other disposition by Holdings or any of its Subsidiaries to any Person other than Holdings or any Wholly-Owned Subsidiary of Holdings of, and any Recovery Event with respect to, any asset (including any capital stock or other securities of another Person, but excluding the sale by such Person of its own capital stock) of Holdings or such Subsidiary other than (a) sales, transfers or other dispositions of inventory made in the ordinary course of business, (b) any sale or other disposition of Cash Equivalents in the ordinary course of business, (c) any merger, consolidation or liquidation permitted by Section 7.02(g) or (h), (d) any transfer of assets permitted pursuant to Section 7.02(e), (f) or (k), (e) any transaction permitted pursuant to Section 7.02(j), (f) any sale permitted pursuant to Section 7.02(m), (n) or (q) and (g) any other sale, disposition or Recovery Event (or series of related sales, dispositions and Recovery Events) that generates Net Sale Proceeds of less than $1,000,000.

“Assignment and Assumption Agreement” shall mean the Assignment and Assumption Agreement substantially in the form of Exhibit H (appropriately completed).

“Authorized Officer” shall mean, with respect to (a) the delivery of Notices of Borrowing, Letter of Credit Requests and similar notices, the chief financial officer, the chief operating officer, any treasurer or other financial officer of the applicable Borrower, (b) delivery of financial information and officer’s certificates pursuant to this Agreement, the chief operating officer, the chief financial officer, any treasurer or other financial officer of Holdings or the US Borrower, as the case may be, and (c) any other matter in connection with this Agreement or any other Credit Document, any officer (or a person or persons so designated by any two officers) of the applicable Credit Party, in each case to the extent reasonably acceptable to the Administrative Agent.

“B/A” shall mean any instrument, including a xxxx of exchange within the meaning of the Bills of Exchange Act (Canada), and a depository xxxx issued in accordance with the Depository Bills and Notes Act (Canada), denominated in Canadian Dollars, drawn by the Canadian Borrower and accepted by a Global Revolving Lender in accordance with the terms of this Agreement.

“B/A Drawing” shall mean B/As accepted and purchased on the same date and as to which a single Contract Period is in effect, including any B/A Equivalent Loans accepted and purchased on the same date, and as to which a single Contract Period is in effect. For greater certainty, all provisions of this Agreement that are applicable to B/As are also applicable, mutatis mutandis, to B/A Equivalent Loans.

“B/A Equivalent Loan” shall have the meaning provided in Section 2.07(k).

“Bankruptcy Code” shall have the meaning provided in Section 8.05.

“Base Rate” shall mean, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus ½ of 1%. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the Federal Funds Effective Rate, respectively.

“Base Rate Loans” shall mean each US Dollar Loan made to the US Borrower and designated as such by the US Borrower at the time of the incurrence thereof or conversion thereto.

“Borrowers” shall mean the US Borrower, the Canadian Borrower and the UK Borrower, collectively.

“Borrowing” shall mean and include (a) the borrowing of Swingline Loans from the Swingline Lender on a given date and (b) the borrowing of one Type of Loan pursuant to a single Tranche by the US Borrower, the Canadian Borrower or the UK Borrower, as the case may be, from all of the Lenders having Commitments with respect to such Tranche on a pro rata basis on a given date (or resulting from conversions on a given date), having in the case of Eurodollar Loans the same Interest Period.

“Business Day” shall mean (a) for all purposes other than as covered by clause (b) or (c) below, any day except Saturday, Sunday and any day that shall be in New York City a legal holiday or a day on which banking institutions are authorized or required by law or other government action to close, (b) with respect to all notices and determinations in connection with, and payments of principal and interest on, Eurodollar Loans, any day that is a Business Day, as described in clause (a) above that is also a day for trading by and between banks in the applicable currency in the interbank Eurodollar market, except any day that shall be in London a legal holiday or a day on which banking institutions are authorized or required by law or other government action to close, and (c) with respect to all notices and determinations in connection with Loans made to the Canadian Borrower or B/As and with respect to all payments of principal and interest on Loans made to the Canadian Borrower and all payments in respect of B/As, the term “Business Day” shall also exclude any day on which banks are not open for dealings in deposits in Toronto.

“Calculation Period” shall mean the period of four consecutive fiscal quarters of the US Borrower (taken as one accounting period) most recently ended prior to the date of the respective Permitted Acquisition, Subsidiary Redesignation, Dividend or incurrence of Incremental Term Loans, as the case may be.

“CAM” shall mean the mechanism for the allocation and exchange of interests in the Loans, B/As, participations in Letters of Credit and collections thereunder established under Section 2.21.

“CAM Exchange” shall mean the exchange of the Lenders’ interests provided for in Section 2.21.

“CAM Exchange Date” shall mean the first date after the Effective Date on which there shall occur (a) any event described in Section 8.05 with respect to any Borrower or (b) an acceleration of the maturity of Loans pursuant to Article VIII.

“CAM Percentage” shall mean, as to each Lender, a fraction, expressed as a decimal, of which (a) the numerator shall be the aggregate US Dollar Equivalent (determined on the basis of the applicable Spot Exchange Rates prevailing on the CAM Exchange Date) of the sum (without duplication) of (i) the aggregate Loan Document Obligations owed to such Lender, (ii) the LC Exposure, if any, of such Lender, and (iii) the Swingline Exposure, if any, of such Lender, in each case immediately prior to the CAM Exchange Date, and (b) the denominator shall be the aggregate US Dollar Equivalent (determined on the basis of the applicable Spot Exchange Rates prevailing on the CAM Exchange Date) of the sum (without duplication) of (i) the aggregate Loan Document Obligations owed to all the Lenders and (ii) the aggregate LC Exposure of all the Lenders, in each case immediately prior to the CAM Exchange Date; provided that, for purposes of clause (a) above, the Loan Document Obligations owed to the Swingline Lender will be deemed not to include any Swingline Loans except to the extent provided in clause (a)(iii) above and the Loan Document Obligations owed to a Letter of Credit Issuer will be deemed not to include any LC Disbursements except to the extent provided in clause (a)(ii) above.

“Canadian Base Rate” shall mean a fluctuating rate of interest per annum which is equal at all times to the greater of (a) the reference rate of interest (however designated) announced from time to time by the Administrative Agent as being its reference rate for determining interest chargeable by it on US Dollar-denominated commercial loans made in Canada and (b) 0.50% above the Federal Funds Effective Rate from time to time in effect.

“Canadian Borrower” shall mean Sifto Canada Corp., a corporation continued and amalgamated under the laws of the province of Nova Scotia, Canada.

“Canadian Dollar Equivalent” shall mean, at any time for the determination thereof, the amount of Canadian Dollars that could be purchased with the amount of US Dollars (or any other foreign currency, as applicable) involved in such computation at the Spot Exchange Rate therefor as quoted by the Administrative Agent as of 11:00 a.m. (local time) on the date two Business Days prior to the date of any determination thereof for purchase on such date.

“Canadian Dollar Letter of Credit” shall mean any Letter of Credit denominated in Canadian Dollars.

“Canadian Dollar LC Exposure” means, at any time, the sum of (a) the US Dollar Equivalent of the aggregate undrawn and unexpired amount of all outstanding Canadian Dollar Letters of Credit at such time plus (b) the US Dollar Equivalent of the aggregate principal amount of all LC Disbursements in respect of Canadian Dollar Letters of Credit that have not yet been reimbursed at such time.

“Canadian Dollars” or “C$” shall mean the lawful money of Canada.

“Canadian Intercompany Loan” shall mean the loan made by the US Borrower to the Canadian Borrower prior to the Effective Date in the aggregate principal amount of $17,323,877, as of the date hereof, and assigned by the US Borrower to Subco.

“Canadian Intercompany Note” shall mean the promissory note issued by the Canadian Borrower to the US Borrower (and assigned by the US Borrower to Subco) representing amounts owed under the Canadian Intercompany Loan.

“Canadian Lending Office” shall mean, as to any Global Revolving Lender, the applicable branch, affiliate or office of such Global Revolving Lender designated by such Global Revolving Lender to make Loans to the Canadian Borrower and to accept and purchase or arrange for the purchase of B/As of the Canadian Borrower; provided that any such branch, affiliate or office shall be (a) of a bank named in Schedule I or Schedule II to the Bank Act (Canada) or (b) a branch, affiliate or office either (i) of a financial institution or other entity that is not a “non-resident of Canada” (as such term is defined in the Canadian Tax Act) or (ii) of a financial institution that is named on Schedule III to the Bank Act (Canada) and through which an “authorized foreign bank” (as such term is defined in the Canadian Tax Act) carries on a Canadian banking business.

“Canadian LP” shall mean Compass Canada Limited Partnership, a limited partnership organized under the laws of the Province of Ontario, Canada.

“Canadian LP Intercompany Loans” shall mean the loans made by Sideco to Canadian LP prior to the Effective Date in the aggregate principal amount of C$233,370,500.

“Canadian LP Intercompany Notes” shall mean the promissory notes issued by Canadian LP to Sideco representing amounts owed under the Canadian LP Intercompany Loans.

“Canadian Permitted Encumbrances” shall mean Permitted Encumbrances and the Permitted Liens described in Sections 7.03(a), (b), (c), (f), (g) and (h).

“Canadian Prime Rate” shall mean, for any day, the rate of interest per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greater of (a) the interest rate per annum publicly announced from time to time by the Administrative Agent as its reference rate in effect on such day at its principal office in Toronto for determining interest rates applicable to commercial loans denominated in Canadian Dollars in Canada (each change in such reference rate being effective from and including the date such change is publicly announced as being effective) and (b) the interest rate per annum equal to the sum of (i) the CDOR Rate on such day (or, if such rate is not so reported on the Reuters Screen CDOR Page, the average of the rate quotes for bankers’ acceptances denominated in Canadian Dollars with a

term of 30 days received by the Administrative Agent at approximately 10:00 a.m., Toronto time, on such day (or, if such day is not a Business Day, on the next preceding Business Day) from one or more banks of recognized standing selected by it) and (ii) 1.00% per annum.

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

“Canadian Revolving Credit Exposure” shall mean, at any time, the sum of (a) the US Dollar Equivalent of the aggregate principal amount of the Canadian Revolving Loans denominated in Canadian Dollars outstanding at such time, (b) the aggregate principal amount of the Canadian Revolving Loans denominated in US Dollars outstanding at such time and (c) the US Dollar Equivalent of the aggregate face amount of the B/As accepted by the Global Revolving Lenders and outstanding at such time. The Canadian Revolving Credit Exposure of any Global Revolving Lender at any time shall be such Lender’s Global Revolving Percentage of the total Canadian Revolving Credit Exposure at such time.

“Canadian Revolving Loan” shall mean a Loan made by a Global Revolving Lender pursuant to Section 2.01(c)(ii). Each Canadian Revolving Loan (a) denominated in Canadian Dollars shall be a Canadian Prime Rate Loan and (b) denominated in US Dollars shall be a Canadian Base Rate Loan or a Eurodollar Loan.

“Canadian Tax Act” shall mean the Income Tax Act (Canada) or any successor law purported to cover the same subject matter, as amended from time to time.

“Capital Expenditures” shall mean, with respect to any Person, for any period, all expenditures by such Person that should be capitalized in accordance with GAAP during such period, including all such expenditures with respect to fixed or capital assets (including expenditures for maintenance and repairs that should be capitalized in accordance with GAAP) and, without duplication, the amount of all Capitalized Lease Obligations incurred by such Person during such period.

“Capital Lease,” as applied to any Person, shall mean any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is required to be accounted for as a capital lease on the balance sheet of that Person.

“Capitalized Lease Obligations” shall mean all obligations under Capital Leases of the US Borrower or any of its Subsidiaries, in each case taken at the amount thereof accounted for as liabilities in accordance with GAAP.

“Cash Equivalents” shall mean, as to any Person, (a) US Dollars and, in the case of any Foreign Subsidiaries of the US Borrower, Euros and such local currencies held by them from time to time in the ordinary course of business, (b) securities issued or directly and fully guaranteed or insured by the United States, Canada and Great Britain or any agency or instrumentality thereof (provided that the full faith and credit of the respective country is pledged in support thereof) having maturities of not more than six months from the date of acquisition, (c) time deposits, certificates of deposit, eurodollar time deposits and bankers’ acceptances of any Lender or any commercial bank having, or that is the principal banking subsidiary of a bank

holding company organized under the laws of the United States, any State thereof, the District of Columbia or any foreign jurisdiction having capital, surplus and undivided profits aggregating in excess of $250,000,000 and having a long-term unsecured debt rating of at least “A-” or the equivalent thereof from S&P or “A3” or the equivalent thereof from Xxxxx’x, with maturities of not more than six months from the date of acquisition by such Person, (d) repurchase agreements with a term of not more than 30 days, involving securities of the types described in preceding clause (b), and entered into with commercial banks meeting the requirements of preceding clause (c), (e) commercial paper issued by any Person incorporated in the United States rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the equivalent thereof by Xxxxx’x and in each case maturing not more than six months after the date of acquisition by such Person, (f) auction rate securities rated at least “A” or the equivalent thereof by S&P or at least “A2” or the equivalent thereof by Xxxxx’x, (g) investments in money market funds substantially all of whose assets are comprised of securities of the types described in clauses (b) through (f) above and (h) overnight deposits and demand deposit accounts (in the respective local currencies) maintained in the ordinary course of business.

“CDOR Rate” shall mean, on any date, an interest rate per annum equal to the average discount rate rounded upward to the nearest 1/100th of 1% applicable to bankers’ acceptances denominated in Canadian Dollars with a term of 30 days (for purposes of the definition of “Canadian Prime Rate”) or with a term equal to the Contract Period of the relevant B/As (for purposes of the definition of “Discount Rate”) appearing on the Reuters Screen CDOR Page (as defined in the International Swaps and Derivative Association, Inc. 1991 definitions, as modified and amended from time to time), or on any successor or substitute page of such Screen, or any successor to or substitute for such Screen, providing rate quotations comparable to those currently provided on such page of such Screen, as determined by the Administrative Agent from time to time, at approximately 10:00 a.m., Toronto time, on such date (or, if such date is not a Business Day, on the next preceding Business Day).

“Change in Law” shall mean (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or the Letter of Credit Issuer (or, for purposes of Section 2.16(b), by any lending office of such Lender or by such Lender’s or the Letter of Credit Issuer’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement.

“Change of Control Event” shall mean, (a)(i) any Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as in effect on the Effective Date), shall have acquired beneficial ownership of 30% or more on a fully diluted basis of the voting and/or economic interest in Holdings’s capital stock or (ii) the Board of Directors of Holdings shall cease to consist of a majority of Continuing Directors or (iii) a “change of control” or similar event shall occur as provided in any Senior Subordinated Notes, Holdings Notes, Permitted Holdings Refinancing Indebtedness or any Permitted Debt, Disqualified Preferred Stock or Qualified Preferred Stock or the documentation governing the same to the extent the outstanding principal amount or liquidation preference, as the case may be, of such Senior Subordinated Notes, Holdings Notes, Permitted Holdings Refinancing Indebtedness, Permitted Debt, Disqualified Preferred Stock or Qualified Preferred Stock exceeds $10,000,000

or (b)(i) Holdings shall cease to own on a fully diluted basis 100% of the economic and voting interest in the capital stock of the US Borrower, (ii) the US Borrower shall cease to own on a fully diluted basis 100% of the economic and voting interest in the Canadian Borrower (either directly or through one or more Wholly-Owned Subsidiaries of the US Borrower) or (iii) the US Borrower shall cease to own on a fully diluted basis 100% of the economic and voting interest in the UK Borrower (either directly or through one or more Wholly-Owned Subsidiaries of the US Borrower).

“CLO” shall have the meaning provided in Section 10.04.

“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the Treasury regulations promulgated thereunder. Section references to the Code are to the Code, as in effect at the date of this Agreement and any subsequent provisions of the Code, amendatory thereof, supplemental thereto or substituted therefor.

“Collateral” shall mean all property (whether real or personal, movable or immovable) with respect to which any security interests have been granted (or purported to be granted) pursuant to any Security Document, including all Pledged Collateral, all Security Agreement Collateral, all Mortgaged Property and all cash and Cash Equivalents delivered as collateral pursuant to any Security Document.

“Collateral Agent” shall have the meaning provided in the respective Security Documents.

“Commitment” shall mean any of the commitments of any Lender hereunder, i.e., whether the Term Loan Commitment (or any commitment in respect of any Incremental Term Loans), US Revolving Loan Commitment or Global Revolving Loan Commitment.

“Commitment Fee” shall have the meaning provided in Section 2.13(a).

“Company” shall mean any corporation, limited liability company, partnership or other business entity (or the adjectival form thereof, where appropriate).

“Consolidated Current Assets” shall mean, at any time, the current assets of the US Borrower and its Subsidiaries at such time determined on a consolidated basis.

“Consolidated Current Liabilities” shall mean, at any time, the current liabilities of the US Borrower and its Subsidiaries determined on a consolidated basis, but excluding the current portion of, and accrued but unpaid interest on, any Indebtedness under this Agreement and any other long-term Indebtedness that would otherwise be included therein.

“Consolidated Debt” shall mean, at any time, the sum of (without duplication) (a) all Indebtedness (other than take-or-pay obligations) of the US Borrower and its Subsidiaries as would be required to be reflected on the liability side of a balance sheet of such Person in accordance with GAAP as determined on a consolidated basis (excluding all Indebtedness of the US Borrower and its Subsidiaries of the type described in clause (h) of the definition of Indebtedness), (b) unreimbursed drawings on all letters of credit issued for the account of the US Borrower or any of its Subsidiaries and (c) all Contingent Obligations of the US Borrower

and its Subsidiaries in respect of Indebtedness of other Persons (i.e., Persons other than the US Borrower or any of its Subsidiaries) of the type referred to in preceding clauses (a) and (b) of this definition; provided that, for purposes of this definition, the amount available to be drawn under letters of credit issued for the account of the US Borrower or any of its Subsidiaries (other than unreimbursed drawings) shall be excluded in making any determination of “Consolidated Debt” and (iii) with respect to any determination of Consolidated Debt as of any time during the fourth calendar quarter of any year, the amount of Revolving Loans and Swingline Loans outstanding as of any such time shall be deemed to be equal to the daily average of the amount of Revolving Loans and Swingline Loans outstanding during each fiscal quarter of the US Borrower included in the applicable Test Period most recently ended prior to such date.

“Consolidated EBIT” shall mean, for any period, the Consolidated Net Income of the US Borrower and its Subsidiaries for such period, determined on a consolidated basis, before Consolidated Interest Expense (to the extent deducted in arriving at Consolidated Net Income) and provision for Taxes based on income for such period, in each case that were included in arriving at Consolidated Net Income for such period.

“Consolidated EBITDA” shall mean, for any period, Consolidated EBIT for such period, adjusted by (a) adding thereto (in each case to the extent deducted in determining Consolidated Net Income for such period and not already added back in determining Consolidated EBIT) the amount of (without duplication) all amortization and depreciation and other non-cash items that were deducted in arriving at Consolidated EBIT for such period (excluding any non-cash item (1) in respect of an item that was included in Consolidated EBITDA in a prior period during the term of this Agreement or (2) that represents the write-down or write-off of inventory) and (b) subtracting therefrom the amount of all cash payments made in such period to the extent that same relate to a non-cash item incurred in a previous period that was added back to Consolidated EBITDA in such previous period pursuant to clause (a) above in this definition.

“Consolidated Fixed Charge Coverage Ratio” shall mean, for any period, the ratio of (a) Consolidated EBITDA minus Capital Expenditures to (b) Consolidated Fixed Charges for such period. All calculations of the Consolidated Fixed Charge Coverage Ratio shall be made on a Pro Forma Basis, with determinations of Consolidated Fixed Charge Coverage Ratio to give effect to all adjustments (including those specified in clauses (iv) and (v)) contained in the definition of “Pro Forma Basis” contained herein).

“Consolidated Fixed Charges” shall mean, for any period, the sum of (without duplication) (a) Consolidated Interest Expense for such period, (b) the aggregate amount of scheduled principal payments during such period in respect of Indebtedness that, in accordance with GAAP constitutes (or, when incurred, constituted) a long-term liability (“Long-Term Indebtedness”) of the US Borrower and its Subsidiaries (other than the payment at final maturity of the Senior Subordinated Notes), (c) the aggregate amount of principal payments (other than scheduled principal payments) made during such period in respect of Long-Term Indebtedness of the US Borrower and its Subsidiaries to the extent that such payments reduced any scheduled principal payments that would have become due within one year after the date of the applicable payment (other than the payment at final maturity of the Senior Subordinated Notes), (d) the aggregate amount of Taxes based on income paid in cash by Holdings and its Subsidiaries during such period and (e) cash Dividends paid by Holdings in respect of Holdings Common Stock during such period.

“Consolidated Interest Coverage Ratio” shall mean, for any period, the ratio of Consolidated EBITDA to Consolidated Interest Expense for such period. All calculations of the Consolidated Interest Coverage Ratio shall be made on a Pro Forma Basis, with determinations of Consolidated Interest Coverage Ratio to give effect to all adjustments (including those specified in clauses (iv) and (v)) contained in the definition of “Pro Forma Basis” contained herein.

“Consolidated Interest Expense” shall mean, for any period, the total consolidated interest expense of the US Borrower and its Subsidiaries for such period (calculated without regard to any limitations on the payment thereof) plus, without duplication, (a) that portion of Capitalized Lease Obligations of the US Borrower and its Subsidiaries representing the interest factor for such period, and capitalized interest expense, plus (b) the product of (i) the amount of all cash Dividend requirements (whether or not declared or paid) on Preferred Stock of Holdings paid, accrued or scheduled to be paid or accrued during such period multiplied by (ii) a fraction, the numerator of which is one and the denominator of which is one minus the then-current effective consolidated Federal, state, local and foreign income tax rate (expressed as a decimal number between one and zero) of Holdings as would be required to be reflected in the audited consolidated financial statements of Holdings for its most recently completed fiscal year (whether or not such financial statements are actually prepared), which amounts described in preceding clause (b) shall be treated as interest expense of the US Borrower and its Subsidiaries for purposes of this definition regardless of the treatment of such amounts under GAAP, plus (c) the aggregate amount of all cash Dividends paid by the US Borrower to Holdings for such period pursuant to Section 7.06(k), in the case of each of clauses (a)-(c) payable or paid in cash in such period and net of the total consolidated cash interest income of the US Borrower and its Subsidiaries for such period, but excluding the amortization of (i) any deferred financing costs and (ii) any costs in respect of any Interest Rate Protection Agreement.

“Consolidated Net Income” shall mean, for any period, the remainder of (a) the net after-tax income of the US Borrower and its Subsidiaries determined on a consolidated basis, without giving effect to (without duplication) (i) (A) any after-tax nonrecurring gains or losses or after-tax items classified as extraordinary gains or losses and (B) any other nonrecurring cash and non-cash expenses incurred or payments made by the US Borrower and its Subsidiaries in connection with the Transaction, (ii) after-tax gains and losses from the sale or disposition of assets (other than sales or dispositions of inventory, equipment, raw materials and supplies in the ordinary course of business) by the US Borrower and its Subsidiaries and (iii) expenses of the US Borrower and its Subsidiaries incurred to replace or repair damage to property of the US Borrower and its Subsidiaries that is the subject of any non-recurring event referred to in the definition of the term Recovery Event to the extent such expenses exceed $1,000,000 during any period of four consecutive fiscal quarters of the US Borrower and to the extent insurance proceeds are not received in respect thereof minus (b) the aggregate amount of all Dividends paid by the US Borrower to Holdings for such period pursuant to Section 7.06(c), (e), (f), (h), (i) and (k) (in each case to the extent that such amounts were not already deducted in determining the net after-tax income of the US Borrower and its Subsidiaries for such period); provided that the following items shall be excluded in computing Consolidated Net Income (without

duplication): (i) the net income or net losses of any Person in which any other Person or Persons (other than the US Borrower and its Wholly-Owned Subsidiaries) has an equity interest or interests, except to the extent of the amount of dividends or other distributions actually paid to the US Borrower or such Wholly-Owned Subsidiaries by such Person during such period, (ii) except for determinations expressly required to be made on a Pro Forma Basis, the net income (or loss) of any Person accrued prior to the date it becomes a Subsidiary or all or substantially all of the property or assets of such Person are acquired by a Subsidiary and (iii) the net income of any Subsidiary to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary of such net income is not at the time permitted by the operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Subsidiary.

“Contingent Obligations” shall mean, as to any Person, any obligation of such Person guaranteeing or intended to guaranty any Indebtedness, leases, dividends or other obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, any obligation of such Person, whether or not contingent, (a) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any such primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (d) otherwise to assure or hold harmless the owner of such primary obligation against loss in respect thereof; provided, however, that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection or standard contractual indemnities entered into, in each case in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith.

“Continuing Directors” shall mean the directors of Holdings on the Effective Date and each other director if such director’s nomination for the election to the Board of Directors of Holdings is recommended by a majority of the then Continuing Directors.

“Contract Period” shall mean, with respect to any B/A, the period commencing on the date such B/A is issued and accepted and ending on the date 30, 60, 90, 180, 270 or 360 days thereafter, as the Canadian Borrower may elect (in each case subject to availability); provided that if such Contract Period would end on a day other than a Business Day, such Contract Period shall be extended to the next succeeding Business Day.

“Credit Documents” shall mean this Agreement, each Incremental Term Loan Amendment (when executed and delivered by the parties thereto), the Notes, each Guaranty and each Security Document.

“Credit Event” shall mean the making of a Loan or the issuance, amendment, renewal or extension of a Letter of Credit or a B/A Drawing.

“Credit Party” shall mean, collectively, each US Credit Party and each Foreign Credit Party.

“Debt Tender Offer” shall mean the offer to purchase and consent solicitation made by the US Borrower on November 21, 2005, with respect to all its outstanding Existing Senior Subordinated Notes, pursuant to which the US Borrower (a) will purchase all the Existing Senior Subordinated Notes validly tendered and not withdrawn pursuant to such offer to purchase (the “Tendered Senior Subordinated Notes”), (b) will enter into a supplemental indenture that amends the Senior Subordinated Note Indenture to eliminate or modify (in a manner reasonably satisfactory to the Administrative Agent) all the material covenants (including the so-called restrictive covenants) contained therein and (c) will pay tender premiums, accrued interest and consent fees in connection with the purchase of the Tendered Senior Subordinated Notes (the “Debt Tender Premium”), in each case in accordance with the Debt Tender Offer Documents.

“Debt Tender Offer Documents” shall mean the US Borrower’s Offer to Purchase and Consent Solicitation Statement dated November 21, 2005, and all other documents executed and delivered with respect to the Debt Tender Offer.

“Debt Tender Premium” shall have the meaning provided in the definition of “Debt Tender Offer”.

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

“Defaulting Lender” shall mean any Lender with respect to which a Lender Default is in effect.

“Discount Proceeds” shall mean, with respect to any B/A, an amount in Canadian Dollars (rounded upward, if necessary, to the nearest C$0.01) calculated by multiplying (a) the face amount of such B/A by (b) the quotient obtained by dividing (i) one by (ii) the sum of (A) one and (B) the product of (1) the Discount Rate (expressed as a decimal) applicable to such B/A and (2) a fraction of which the numerator is the Contract Period applicable to such B/A and the denominator is 365, with such quotient being rounded upward or downward to the fifth decimal place and .000005 being rounded upward.

“Discount Rate” shall mean, with respect to a B/A being accepted and purchased on any day, (a) for a Lender that is a Schedule I Lender, (i) the CDOR Rate applicable to such B/A or, (ii) if the discount rate for a particular Contract Period is not quoted on the Reuters Screen CDOR Page, the arithmetic average (as determined by the Administrative Agent) of the percentage discount rates (expressed as a decimal and rounded upward, if necessary, to the nearest 1/100 of 1%) quoted to the Administrative Agent by the Schedule I Reference Lenders as the percentage discount rate at which each such Schedule I Reference Lender would, in accordance with its normal practices, at approximately 10:00 a.m., Toronto time, on such day, be prepared to purchase bankers’ acceptances accepted by such Schedule I Reference Lender having a face amount and term comparable to the face amount and Contract Period of such B/A, and (b) for a Lender that is a Schedule II Lender or a Schedule III Lender, the lesser of (i) the CDOR

Rate applicable to such B/A plus 0.10% per annum and (ii) the percentage discount rate (expressed as a decimal and rounded upward, if necessary, to the nearest 1/100 of 1%) quoted to the Administrative Agent by the Schedule III Reference Lender as the percentage discount rate at which such Schedule III Reference Lender would, in accordance with its normal practices, at approximately 10:00 a.m., Toronto time, on such day, be prepared to purchase bankers’ acceptances accepted by such Schedule III Reference Lender having a face amount and term comparable to the face amount and Contract Period of such B/A.

“Disqualified Preferred Stock” shall mean any Preferred Stock of Holdings other than Qualified Preferred Stock.

“Dividend” shall have the meaning provided in the preamble to Section 7.06.

“Documents” shall mean and include (a) the Credit Documents, (b) the Debt Tender Offer Documents, (c) the Senior Subordinated Note Documents, (d) the Holdings Notes Documents in respect of the Holdings Notes, (e) the Canadian Intercompany Note, (f) the UK Intercompany Note, (g) the Canadian LP Intercompany Notes and (h) all other documents, agreements and instruments executed in connection with the Transaction.

“Domestic Subsidiary” shall mean each Subsidiary of Holdings (other than the US Borrower) incorporated or organized in the United States or any State thereof or the District of Columbia.

“Effective Date” shall mean the date on which the conditions specified in Article III are satisfied (or waived in accordance with Section 10.11).

“EMU Legislation” shall mean the legislative measures of the European Union for the introduction of, changeover to or operation of a single or unified European currency.

“End Date” shall have the meaning provided in the definition of “Applicable Rate.”

“Environmental Claims” shall mean any and all administrative, regulatory or judicial actions, suits, demands, demand letters, orders, directives, claims, liens, notices of non-compliance or violation, investigations or proceedings (hereafter, “Claims”), including any and all Claims by Governmental Authorities or any other third parties for enforcement, cleanup, removal, response, or any other remedial actions or seeking, fines, penalties, contribution, indemnification, cost recovery, natural resource damages compensation or any other damages or injunctive relief, resulting in any way from or relating to (a) the non-compliance (or alleged non-compliance) with any Environmental Law or any permit issued under any Environmental Law, (b) the presence, use, handling, transportation, storage, Release or threatened Release of or exposure to any Hazardous Materials or (c) the alleged injury or threat of injury to health, safety or the environment.

“Environmental Law” shall mean any federal, state, provincial, foreign or local policy, statute, law, rule, regulation, ordinance, code or rule of common law now or hereafter in effect and in each case as amended, and any judicial or administrative interpretation thereof, including any judicial or administrative order, consent, decree or judgment relating to the

environment, Hazardous Materials, the preservation or reclamation of natural resources or employee health and safety matters.

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder. Section references to ERISA are to ERISA, as in effect at the date of this Agreement and any subsequent provisions of ERISA, amendatory thereof, supplemental thereto or substituted therefor.

“ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) that together with Holdings or a Subsidiary of Holdings would be deemed to be a “single employer” within the meaning of Section 414(b), (c), (m) or (o) of the Code.

“Euro” shall mean the single currency of the European Union as constituted by the Treaty on European Union and as referred to in the EMU Legislation.

“Eurodollar Rate” shall mean (a) relative to any Interest Period for a Borrowing of a Eurodollar Loan, (i) the interest rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) for deposits in US Dollars in respect of US Dollar Loans and for deposits in Sterling in respect of Sterling Loans for a period equal to the relevant Interest Period that appears on Telerate Page 3750 (or any successor page) at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the commencement of such Interest Period for a term comparable to such Interest Period, (ii) to the extent that an interest rate is not ascertainable pursuant to preceding clause (i), the interest rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) for deposits in US Dollars for a period equal to the relevant Interest Period that appears on the Reuters Screen LIBO Page (or any successor page) (or, if more than one such rate appears on such page, the arithmetic mean of all such rates) at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the commencement of such Interest Period for a term comparable to such Interest Period or (iii) to the extent that an interest rate is not ascertainable pursuant to preceding clause (i) or (ii), the arithmetic average (rounded upwards, if necessary, to the nearest 1/100 of 1%) of the offered quotation to first-class banks in the London interbank Eurodollar market by the Administrative Agent for deposits in US Dollars in respect of US Dollar Loans and for deposits in Sterling in respect of Sterling Loans of amounts in immediately available funds comparable to the outstanding principal amount of the Eurodollar Loan of the Administrative Agent with terms comparable to the Interest Period applicable to such Eurodollar Loan commencing two Business Days thereafter as of 11:00 a.m. (London time) on the date that is two Business Days prior to the commencement of such Interest Period, divided (in any case) by (b) a percentage equal to 100% minus the then stated maximum rate of all reserve requirements (including any marginal, emergency, supplemental, special or other reserves required by applicable law) applicable to any member bank of the Federal Reserve System in respect of Eurocurrency funding or liabilities as defined in Regulation D (or any successor category of liabilities under Regulation D) or in effect in Canada or the United Kingdom and to which Global Revolving Lenders, as applicable, are subject for any category of deposits or liabilities customarily used to fund loans in the applicable currency or by reference to which interest rates applicable to loans in the applicable currency are determined in the applicable jurisdiction.

“Event of Default” shall have the meaning provided in Article VIII.

“Excess Cash Flow” shall mean, for any period, the remainder of (a) the sum of (i) Adjusted Consolidated Net Income for such period, and (ii) the decrease (expressed as a positive number), if any, in Adjusted Consolidated Working Capital (other than as a result of a reclassification of assets and liabilities from short to long-term or vice versa) from the first day to the last day of such period, minus (b) the sum of (i) the amount of Capital Expenditures made by the US Borrower and its Subsidiaries on a consolidated basis during such period pursuant to and in accordance with Sections 7.11(a) and (b), except to the extent financed with the proceeds of Indebtedness (other than the proceeds of Revolving Loans or Swingline Loans) or pursuant to Capitalized Lease Obligations, (ii) the aggregate amount of permanent principal payments of Indebtedness for borrowed money of the US Borrower and its Subsidiaries and the permanent repayment of the principal component of Capitalized Lease Obligations of the US Borrower and its Subsidiaries (excluding (A) payments with proceeds of asset sales, (B) payments with the proceeds of Indebtedness or equity and (C) payments of Loans, B/As or other Obligations; provided that repayment of Loans shall be deducted in determining Excess Cash Flow if such payments were required as a result of a Scheduled Repayment under Section 2.12(b)) during such period, (iii) the increase (expressed as a positive number), if any, in Adjusted Consolidated Working Capital (other than as a result of a reclassification of assets and liabilities from short to long-term or vice versa) from the first day to the last day of such period, (iv) without duplication of amounts deducted in the preceding clauses (b)(i), (ii) and (iii), the amount of cash expended in respect of Permitted Acquisitions during such period, except to the extent financed with Indebtedness, equity or Net Sale Proceeds of Asset Sales (in the case of such Net Sales Proceeds, to the extent the amount of prepayments required pursuant to Section 2.12(c) is reduced as a result of such Permitted Acquisitions having been made) and (v) the aggregate amount of Dividends paid by the US Borrower pursuant to Section 7.06(j) during such period.

“Excess Cash Flow Payment Date” shall mean the date occurring 90 days after the last day of a fiscal year of the US Borrower (beginning with the US Borrower’s fiscal year ending on December 31, 2006).

“Excess Cash Flow Payment Period” shall mean, with respect to the repayment required on any Excess Cash Flow Payment Date, the fiscal year of the US Borrower immediately preceding such Excess Cash Flow Payment Date.

“Excluded Taxes” shall mean, with respect to the Administrative Agent, any Lenders, the Letter of Credit Issuer or any other recipient of any payment to be made by or on account of any obligation of any Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income (including alternative minimum tax) 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 which it is engaged in business 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 described in clause (a) above and (c) in the case of a Non-US Lender or a Foreign Lender (other than an assignee pursuant to a request by a Borrower under Section 2.20(b) or 10.11(b)), any withholding tax that (i) is in effect and would apply to amounts payable to such Non-US Lender or Foreign Lender at the time such Non-US Lender or Foreign Lender becomes a party to this Agreement (or

designates a new lending office), except to the extent that such Non-US Lender or Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrowers with respect to any withholding tax pursuant to Section 2.18(a), or (ii) is attributable to such Non-US Lender’s or Foreign Lender’s failure to comply with Section 2.18(e) or 2.18(f), as applicable.

“Existing Credit Agreement” shall mean the Credit Agreement, dated as of November 28, 2001, as amended and restated as of April 10, 2002, as further amended prior to the date hereof, among Holdings, the Borrowers, the lenders party thereto, the Administrative Agent, JPMorgan Chase Bank, N.A., Toronto Branch, and X.X. Xxxxxx Europe Limited.

“Existing Credit Agreement Indebtedness” shall mean all principal, interest and all other amounts owing under the Existing Credit Agreement and any other obligations related thereto.

“Existing Letters of Credit” shall mean each letter of credit previously issued for the account of, or guaranteed by, any Borrower or any Subsidiary of any Borrower that (a) is outstanding on the Effective Date and (b) is listed on Schedule 2.05.

“Existing Senior Subordinated Notes” shall mean $325,000,000 in aggregate principal amount of 10% senior subordinated notes due 2011 of the US Borrower that remained outstanding on the Effective Date immediately prior to the consummation of the Debt Tender Offer.

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

“Foreign Credit Party” shall mean the Canadian Borrower, the UK Borrower and each other Guarantor that is also a Foreign Subsidiary of Holdings.

“Foreign Guaranty” shall have the meaning provided in Section 3.12.

“Foreign Lender” shall mean, as to the Canadian Borrower, any Lender that is a non-resident of Canada for purposes of the Canadian Tax Act and not an “authorized foreign bank” under the Canadian Tax Act, and as to the UK Borrower, any Lender that is neither a resident in the United Kingdom nor liable for the United Kingdom corporation tax with respect to any payment to be made by or on account of any obligation of the UK Borrower.

“Foreign Mortgaged Property” shall mean any Mortgaged Property located outside the United States or any State thereof.

“Foreign Obligations” shall mean the Loan Document Obligations that constitute Foreign Obligations (as defined in the Foreign Guaranty).

“Foreign Pension Plan” shall mean any plan, fund (including any superannuation fund) or other similar program established or maintained outside the United States of America by Holdings or any one or more of its Subsidiaries primarily for the benefit of employees of Holdings or any of its Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and which plan is not subject to ERISA or the Code.

“Foreign Perfection Certificate” shall mean a certificate in the form attached to each Foreign Security Agreement, with such modifications to such form as the Collateral Agent may reasonably request, or any other form approved by the Collateral Agent.

“Foreign Pledge Agreements” shall have the meaning provided in Section 3.09.

“Foreign Security Agreements” shall have the meaning provided in Section 3.10.

“Foreign Subsidiary” shall mean, as to any Person, each Subsidiary of such Person that is not a Domestic Subsidiary.

“Foreign Unrestricted Subsidiary” shall mean each Unrestricted Subsidiary that is incorporated under the laws of any jurisdiction other than the United States, any State thereof or the District of Columbia.

“GAAP” shall mean generally accepted accounting principles in the United States of America as in effect from time to time; it being understood and agreed that determinations in accordance with GAAP for purposes of Article VII, including defined terms as used therein, are subject (to the extent provided therein) to Section 10.06(a).

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

“Global Revolving Credit Exposure” shall mean, at any time, the sum of the outstanding principal amount of (a) Global US Revolving Loans, (b) Canadian Revolving Loans and (b) UK Revolving Loans. The Global Revolving Credit Exposure of any Global Revolving Lender at any time shall be such Lender’s Global Revolving Percentage of the total Global Revolving Credit Exposure at such time.

“Global Revolving Lender” shall mean a Lender with a Global Revolving Loan Commitment or with any outstanding Global Revolving Loans or B/A Drawings.

“Global Revolving Loan” shall mean a Loan made by a Global Revolving Lender pursuant to Section 2.01(c).

“Global Revolving Loan Commitment” shall mean, with respect to each Global Revolving Lender, the commitment of such Lender to make Global Revolving Loans hereunder

during the Revolving Availability Period and to accept and purchase or arrange for the purchase of B/As pursuant to Section 2.07, expressed as an amount expressed in US Dollars representing the maximum potential aggregate amount of such Lender’s Global Revolving Credit Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.09 or 2.20(b) and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 10.04 or 10.11(b). The initial amount of each Global Revolving Lender’s Global Revolving Loan Commitment is set forth opposite such Lender’s name in Schedule I directly below the column entitled “Global Revolving Loan Commitment”, or in the Assignment and Assumption Agreement pursuant to which such Lender shall have assumed its Global Revolving Loan Commitment, as applicable. The initial aggregate amount of the Global Revolving Lenders’ Global Revolving Loan Commitments is $50,000,000.

“Global Revolving Note” shall mean a promissory note substantially in the form of Exhibit A-2B with blanks appropriately completed in conformity herewith.

“Global Revolving Percentage” shall mean, with respect to any Global Revolving Lender, the percentage of the total Global Revolving Loan Commitments represented by such Lender’s Global Revolving Loan Commitment. If a calculation involving the Global Revolving Percentage is required to be made after the Global Revolving Loan Commitments have terminated or expired, the Global Revolving Percentages shall be determined based upon the Global Revolving Loan Commitments most recently in effect, giving effect to any assignments.

“Global Total Revolving Loan Commitment” shall mean, at any time, the sum of the Global Revolving Loan Commitments of each of the Global Revolving Lenders at such time.

“Global Total Unutilized Revolving Loan Commitment” shall mean, at any time, (a) the Global Total Revolving Loan Commitment at such time less (b) the sum of the total Global Revolving Credit Exposures of all the Global Revolving Lenders at such time.

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

“Global US Revolving Loan” shall mean a Loan made by a Global Revolving Lender pursuant to Section 2.01(c)(i).

“Governmental Authority” shall mean the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

“GSL” shall mean GSL Corporation, a Delaware corporation and Wholly-Owned Subsidiary of the US Borrower.

“GSLM” shall mean Great Salt Lake Minerals Corporation, a Delaware corporation and Wholly-Owned Subsidiary of the US Borrower.

“Guaranties” shall mean and include each of the US Collateral and Guaranty Agreement, the Foreign Guaranty and each Additional Security and Guaranty Document that is a guaranty agreement entered into pursuant to Section 6.11 and/or 6.12.

“Guarantors” shall mean and include each of Holdings and the US Borrower (in their capacity as a guarantor under the US Collateral and Guaranty Agreement), the Canadian Borrower and the UK Borrower (in their capacity as guarantor under the Foreign Guaranty) and each of the other Subsidiaries of Holdings that has executed the US Collateral and Guaranty Agreement or the Foreign Guaranty on the Effective Date and any other Subsidiary of Holdings that has entered into the US Collateral and Guaranty Agreement or the Foreign Guaranty pursuant to Sections 6.11 and/or 6.12

“Hazardous Materials” shall mean (a) any petrochemical or petroleum products or byproducts, radioactive materials, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, and radon gas; and (b) any chemicals, materials or substances prohibited, limited or regulated by or pursuant to any Environmental Law.

“Highest Applicable Rates” shall have the meaning provided in the definition of the term Applicable Rate.

“Holdings” shall mean Compass Minerals International, Inc., a Delaware corporation.

“Holdings Common Stock” shall mean the common stock of Holdings, having a par value of $0.01 per share.

“Holdings Indentures” shall mean the Holdings 2012 Notes Indenture and the Holdings 2013 Notes Indenture.

“Holdings Notes” shall mean the Holdings 2012 Notes and the Holdings 2013 Notes.

“Holdings Notes Documents” shall mean (a) the Holdings Notes and the Holdings Indentures and all other documents executed and delivered with respect to the Holdings Notes, as in effect on the date hereof as the same may hereafter be amended, modified or supplemented from time to time in accordance with the requirements hereof and thereof, and (b) all notes evidencing any Permitted Holdings Refinancing Indebtedness, any indenture or other agreement governing the terms of the Permitted Holdings Refinancing Indebtedness and all other documents executed and delivered with respect to the foregoing documents, as in effect on the date such Permitted Holdings Refinancing Indebtedness is first incurred and as the same may be amended, modified or supplemented from time to time in accordance with the requirements hereof and thereof.

“Holdings 2012 Notes” shall mean the 12 ¾% senior discount notes due 2012 issued by Holdings (a) prior to the Effective Date or (b) after the Effective Date in respect of accrued interest on the notes referred to in clause (a) above or this clause (b).

“Holdings 2012 Notes Indenture” shall mean the Indenture dated as of December 20, 2002, between Holdings, as Issuer, and The Bank of New York, as Trustee, as in effect on such date and as thereafter amended, modified or supplemented from time to time in accordance with the requirements hereof and thereof, including amendments, modifications and supplements effected by the First Supplemental Indenture dated as of May 21, 2003.

“Holdings 2013 Notes” shall mean the 12% subordinated discount notes due 2013 issued by Holdings (a) prior to the Effective Date or (b) after the Effective Date in respect of accrued interest on the notes referred to in clause (a) above or this clause (b).

“Holdings 2013 Notes Indenture” shall mean the Indenture dated as of May 22, 2003, between Holdings, as Issuer, and The Bank of New York, as Trustee, as in effect on such date and as thereafter amended, modified or supplemented from time to time in accordance with the requirements hereof and thereof.

“Incremental Term Loan Amendment” shall have the meaning provided in Section 2.23(b).

“Incremental Term Loan Commitments” shall have the meaning provided in Section 2.23(b).

“Incremental Term Loans” shall have the meaning provided in Section 2.23(a).

“Indebtedness” of any Person shall mean, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) the deferred purchase price of assets or services payable to the sellers thereof or any of such seller’s assignees that in accordance with GAAP would be shown as a long-term liability on the liability side of the balance sheet of such Person but excluding deferred rent as determined in accordance with GAAP, (d) the face amount of all letters of credit issued for the account of such Person and, without duplication, all drafts drawn thereunder, (e) the face amount of all bankers’ acceptances and all obligations of such Person, contingent or otherwise, in respect of bankers’ acceptances, (f) all Indebtedness of a second Person secured by any Lien on any property owned by such first Person, whether or not such Indebtedness has been assumed, (g) all Capitalized Lease Obligations of such Person, (h) all obligations under Interest Rate Protection Agreements and other Swap Agreements and (i) all Contingent Obligations of such Person in respect of Indebtedness of others; provided that Indebtedness shall not include account payables and accrued expenses, in each case arising in the ordinary course of business.

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

“Intercompany Loan” shall have the meaning provided in Section 7.05(f).

“Intercompany Notes” shall mean promissory notes, in the form of Exhibit I, evidencing Intercompany Loans.

“Interest Election Request” shall mean a request by a Borrower to convert or continue a Borrowing or B/A Drawing in accordance with Section 2.08.

“Interest Payment Date” shall mean (a) with respect to any Base Rate Loan (other than a Swingline Loan), Canadian Prime Rate Loan or Canadian Base Rate Loan, the last day of each March, June, September and December, (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period and (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid; provided that if any such Interest Payment Date referred to in clause (a) or (c) above is not a Business Day, the “Interest Payment Date” shall be the next succeeding Business Day.

“Interest Period” shall mean, with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter (or nine or twelve months thereafter if, at the time of the relevant Borrowing, all Lenders participating therein agree to make an interest period of such duration available), as the applicable Borrower may elect; provided, that (a) 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, and (b) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

“Interest Rate Protection Agreement” shall mean any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedging agreement or other similar agreement or arrangement.

“Investment” shall have the meaning provided in the preamble to Section 7.05.

“Joint Venture” shall mean any Person, other than an individual or a Wholly-Owned Subsidiary of the US Borrower, (a) in which the US Borrower or any of its Subsidiaries holds or acquires an ownership interest (whether by way of capital stock, partnership or limited liability company interest, or other evidence of ownership) and (b) that is engaged in a Permitted Business.

“JPMCB” shall mean JPMorgan Chase Bank, N.A. and any successor thereto.

“Judgment Currency” shall have the meaning provided in Section 10.17(a).

“Judgment Currency Conversion Date” shall have the meaning provided in Section 10.17(a).

“LC Disbursement” shall mean a payment made by the Letter of Credit Issuer pursuant to a Letter of Credit.

“LC Exposure” shall mean, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit denominated in US Dollars at such time plus (b) the aggregate amount of all LC Disbursements that were made in US Dollars and have not yet been reimbursed by or on behalf of the US Borrower at such time plus (c) the Canadian Dollar LC Exposure at such time. The LC Exposure of any Revolving Lender at any time shall be its US Revolving Percentage of the total LC Exposure at such time.

“LC Reserve Account” shall have the meaning provided in Section 2.21(c).

“Leasehold” of any Person shall mean all of the right, title and interest of such Person as lessee or licensee in, to and under leases or licenses of land, improvements and/or fixtures.

“Lender Default” shall mean (a) the refusal (that has not been retracted) of a Lender to make available its portion of any Borrowing or B/A Drawing or to fund its portion of any unreimbursed payment under Section 2.05 or (b) a Lender having notified the Administrative Agent and/or any Borrower that it does not intend to comply with the obligations under Section 2.01 or 2.05, in the case of either clause (a) or (b) above as a result of the appointment of a receiver or conservator with respect to such Lender at the direction or request of any regulatory agency or authority.

“Lenders” means the Persons listed on Schedule I and any other Person that shall have become a party hereto pursuant to Section 10.04 or 2.23, other than any such Person that ceases to be a party hereto pursuant to Section 10.04. Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender.

“Letter of Credit” shall mean any letter of credit issued pursuant to this Agreement and each Existing Letter of Credit.

“Letter of Credit Issuer” shall mean (a) JPMCB and any other Lender that, at the request of the US Borrower and with the consent of the Administrative Agent, agrees in such Lender’s sole discretion to become a Letter of Credit Issuer for purposes of issuing Letters of Credit pursuant to Article II and (b) with respect to each Existing Letter of Credit, the Lender that issued such Existing Letter of Credit. The Letter of Credit Issuer may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Letter of Credit Issuer, in which case the term “Letter of Credit Issuer” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate; provided that any such arrangement shall not relieve or reduce the Letter of Credit Issuer’s obligation to issue Letters of Credit hereunder.

“Letter of Credit Request” shall have the meaning provided in Section 2.05(b).

“Lien” shall mean any mortgage, pledge, security interest, encumbrance, lien, hypothec or charge of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, any financing or similar statement or notice filed under the UCC or any similar recording or notice statute, and any lease having substantially the same effect as the foregoing).

“Loan” shall mean each Term Loan, each Incremental Term Loan, each Revolving Loan and each Swingline Loan.

“Loan Document Obligations” shall mean the Obligations described in clauses (a), (b) and (c) of the definition of the term Obligations contained in the US Collateral and Guaranty Agreement.

“Local Time” shall mean (a) with respect to a Loan or Borrowing made to the US Borrower, New York City time, (b) with respect to a Loan or Borrowing made to the Canadian Borrower or a B/A, Toronto time and (c) with respect to a Loan or Borrowing made to the UK Borrower, London time.

“Material Adverse Effect” shall mean a material adverse effect on (a) the business, condition (financial or otherwise), prospects or results of operations of the US Borrower and its Subsidiaries taken as a whole or Holdings and its Subsidiaries taken as a whole, in each case since December 31, 2004, (b) the ability of any Credit Party to perform any of its obligations under any Loan Document or (c) the rights of or benefits available to the Lenders under any Loan Document.

“Maturity Date,” with respect to any Tranche of Loans, shall mean the Term Loan Maturity Date, the Revolving Loan Maturity Date or the Swingline Expiry Date, as the case may be.

“Maximum Permitted Consideration” shall mean, with respect to any Permitted Acquisition, the sum (without duplication) of (a) the aggregate liquidation preference of Preferred Stock issued by Holdings as consideration in connection with such Permitted Acquisition, (b) the aggregate principal amount of Permitted Acquired Debt acquired or assumed by Holdings or any of its Subsidiaries in connection with such Permitted Acquisition, (c) the aggregate principal amount of all cash paid (or to be paid) by Holdings or any of its Subsidiaries in connection with such Permitted Acquisition (including payments of fees and costs and expenses in connection therewith), (d) the aggregate principal amount of all other Indebtedness assumed, incurred and/or issued in connection with such Permitted Acquisition and (e) the fair market value (determined in good faith by senior management of Holdings) of all other consideration payable in connection with such Permitted Acquisition (other than Holdings Common Stock).

“Xxxxx’x” shall mean Xxxxx’x Investors Service, Inc.

“Mortgage” shall mean a mortgage, leasehold mortgage, deed of trust, leasehold deed of trust, deed to secure debt, leasehold deed to secure debt or similar security instrument (or an amendment, a supplement or an other modification to any of the foregoing).

“Mortgage Policy” shall mean a mortgage title insurance policy or a binding commitment with respect thereto or an endorsement to an existing mortgage title insurance policy on any Mortgaged Property.

“Mortgaged Property” shall mean any Real Property owned or leased by a Credit Party that is encumbered (or required hereunder to be encumbered) by a Mortgage.

“Multiemployer Plan” shall mean any multiemployer plan as defined in Section 4001(a)(3) of ERISA and that is a pension plan as defined in Section 3(2) of ERISA that is maintained or contributed to by (or to which there is an obligation to contribute of) Holdings, a Subsidiary of Holdings or an ERISA Affiliate, and each such plan for the five-year period immediately following the latest date on which Holdings, a Subsidiary of Holdings or an ERISA Affiliate maintained, contributed to or had an obligation to contribute to such plan.

“NASC” shall mean North American Salt Company, a Delaware corporation and Wholly-Owned Subsidiary of the US Borrower.

“Net Cash Proceeds” shall mean for any event requiring a repayment of Term Loans pursuant to Section 2.12 (other than from any Asset Sale), the gross cash proceeds (including any cash received by way of deferred payment pursuant to a promissory note, receivable or otherwise, but only as and when received) received from such event, net of reasonable transaction costs (including, as applicable, any underwriting, brokerage or other customary commissions and reasonable legal, advisory and other fees and expenses associated therewith) received from any such event.

“Net Sale Proceeds” shall mean for any sale of assets or Recovery Event, the gross cash proceeds (including any cash received by way of deferred payment pursuant to a promissory note, receivable or otherwise, but only as and when received, and insurance proceeds received in respect of such Recovery Event) received from such sale of assets or Recovery Event, net of (a) reasonable transaction costs (including any underwriting, brokerage or other customary selling commissions and reasonable legal, advisory and other fees and expenses, including title and recording expenses, associated therewith) and payments of unassumed liabilities relating to the assets sold at the time of, or within 30 days after, the date of such sale or Recovery Event, (b) the amount of such gross cash proceeds required to be used to repay any Indebtedness (other than Indebtedness of the Lenders pursuant to this Agreement) that is secured by the respective assets that were sold or subject to such Recovery Event and (c) the estimated marginal increase in income taxes that will be payable by Holdings’s consolidated group with respect to the fiscal year in which the sale or Recovery Event occurs as a result of such sale or Recovery Event; provided, however, that such gross proceeds shall not include any portion of such gross cash proceeds that Holdings determines in good faith should be reserved for post-closing adjustments (including indemnification payments), it being understood and agreed that on the day that all such post-closing adjustments have been determined (which shall not be later than six months following the date of the respective asset sale), the amount (if any) by which the reserved amount in respect of such sale or disposition exceeds the actual post-closing adjustments payable by Holdings or any of its Subsidiaries shall constitute Net Sale Proceeds on such date received by Holdings and/or any of its Subsidiaries from such sale, lease, transfer or other disposition. The parties hereto acknowledge and agree that Net Sale Proceeds shall not include any trade-in-credits or purchase price reductions received by Holdings or any of its Subsidiaries in connection with an exchange of equipment for replacement equipment that is the functional equivalent of such exchanged equipment.

“Newco” shall mean Compass Minerals Canada Inc., a Nova Scotia limited company and direct Wholly-Owned Subsidiary of NSULC1.

“Non-Credit Party” shall mean any Subsidiary of Holdings that is not a Credit Party.

“Non-Defaulting Lender” shall mean each Lender other than a Defaulting Lender.

“Non-US Lender” shall have the meaning provided in Section 2.18(e).

“Non-Wholly-Owned Entity” shall have the meaning provided in the definition of Permitted Acquisition.

“Note” shall mean each Term Note, each US Revolving Note, each Global Revolving Note and/or each Swingline Note, as the context may require.

“Notice of Borrowing” shall mean a request by a Borrower for a Borrowing in accordance with Section 2.03.

“Notice/Payment Office” shall mean (a) except as provided in clauses (b), (c) and (d) below, the office of the Administrative Agent, located at 0000 Xxxxxx, 00xx Xxxxx, Xxxxxxx, Xxxxx 00000, Attention: Xxxxxx XxXxxxxxxx, or such other office or offices as the Administrative Agent may designate in writing to the Borrowers and the Lenders from time to time, (b) in the case of Letters of Credit, the office of the respective Letter of Credit Issuer designated in writing by such Letter of Credit Issuer, with a copy to the Administrative Agent at 0000 Xxxxxx, 00xx Xxxxx, Xxxxxxx, Xxxxx 00000, Attention: Xxxxxx XxXxxxxxxx, (c) in the case of B/As and Canadian Revolving Loans, the office of the Administrative Agent at Royal Bank Plaza, South Tower, Floor 18, Toronto, M5J 2J2, Canada, Ontario, Attention: Xxxxxx Xxxxxxxx, Phone: 000-000-0000, Fax: 000-000-0000, or as otherwise designated in writing by the Administrative Agent to the US Borrower, with a copy (in each case) to the Administrative Agent at 0000 Xxxxxx, 00xx Xxxxx, Xxxxxxx, Xxxxx 00000, Attention: Xxxxxx XxXxxxxxxx and (d) in the case of UK Revolving Loans, the office of the Administrative Agent at 000 Xxxxxx Xxxx, Xxxxxx, XX, Attention: Xxxxx Xxx, Phone: x00 000 000 0000, Fax: x00 000 000 0000, or as otherwise designated in writing by the Administrative Agent to the US Borrower, with a copy to the Administrative Agent at 0000 Xxxxxx, 00xx Xxxxx, Xxxxxxx, Xxxxx 00000, Attention: Xxxxxx XxXxxxxxxx.

“NSULC1” shall mean NASC Nova Scotia Company, a Nova Scotia unlimited liability company and direct Wholly-Owned Subsidiary of NASC.

“Obligation Currency” shall have the meaning provided in Section 10.17(a).

“Obligations” shall have the meaning provided in the US Collateral and Guaranty Agreement.

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

“Participant” shall have the meaning provided in Section 2.05(d).

“PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to Section 4002 of ERISA, or any successor thereto.

“Perfection Certificate” shall mean each of the US Perfection Certificate and each Foreign Perfection Certificate.

“Permitted Acquired Debt” shall have the meaning provided in Section 7.04(d) .

“Permitted Acquisition” shall mean the acquisition by the US Borrower or any of its Wholly-Owned Subsidiaries of assets constituting a business, division or product line of any Person not already a Subsidiary of the US Borrower or such Wholly-Owned Subsidiary or of 100% of the capital stock or other equity interests of any such Person; provided that (a) the consideration paid by the US Borrower or such Wholly-Owned Subsidiary consists solely of cash (including proceeds of Revolving Loans), the issuance of Holdings Common Stock, the issuance of any Qualified Preferred Stock or Disqualified Preferred Stock otherwise permitted pursuant to Section 7.13, the issuance of Indebtedness otherwise permitted in Section 7.04 and the assumption/acquisition of any Permitted Acquired Debt (calculated in accordance with GAAP) relating to such business, division, product line or Person that is permitted to remain outstanding in accordance with the requirements of Section 7.04, (b) in the case of the acquisition of 100% of the capital stock or other equity interests of any Person, such Person (the “Acquired Person”) shall own no capital stock or other equity interests of any other Person unless either (i) the Acquired Person owns 100% of the capital stock or other equity interests of such other Person or (ii) if the Acquired Person owns capital stock or equity interests in any other Person that is not a Wholly-Owned Subsidiary of the Acquired Person (a “Non-Wholly-Owned Entity”), both (A) the Acquired Person shall not have been created or established in contemplation of, or for purposes of, the respective Permitted Acquisition and (B) any Non-Wholly-Owned Entity of the Acquired Person shall have been non-wholly owned prior to the date of the respective Permitted Acquisition and not created or established in contemplation thereof, (c) the assets acquired, or the business of the Acquired Person and its Subsidiaries, shall be in a Permitted Business and (d) all applicable requirements of Sections 6.13 and 7.02 applicable to Permitted Acquisitions are satisfied.

“Permitted Acquisition Additional Cost-Savings” shall mean, in connection with each Permitted Acquisition, those demonstrable cost-savings and other adjustments (in each case not included pursuant to clause (iii) or (iv) of the definition of Pro Forma Basis contained herein and otherwise without duplication) reasonably anticipated by the US Borrower as of any date of determination to be achieved in connection with such Permitted Acquisition for the twelve-month period following the consummation of such Permitted Acquisition, which cost-savings and other adjustments shall be estimated on a good faith basis by the US Borrower as of each date of determination and, if requested by the Administrative Agent on a timely basis, shall be verified as of such date of determination (a) by a nationally recognized accounting firm or (b) as otherwise agreed to by the Administrative Agent, in each case prior to the inclusion of the applicable cost-savings and other adjustments in the calculation of Permitted Acquisition Additional Cost-Savings. It is understood and agreed that, for the avoidance of duplication, no anticipated cost-savings or other adjustments shall be included in the calculation of Permitted Acquisition Additional Cost-Savings for any period to the extent such anticipated cost-savings or other adjustments are otherwise reflected in Consolidated EBITDA for such period by virtue of

the achievement of actual cost-savings or other results that were part of the cost-savings or other adjustments anticipated to be achieved.

“Permitted Business” shall mean each business conducted by the US Borrower and its Subsidiaries on the date hereof and any other business or activities as may be substantially similar, incidental or related thereto, and reasonable extensions of the foregoing.

“Permitted Debt” shall mean and include Permitted Acquired Debt, Permitted Subordinated Refinancing Indebtedness and Additional Senior Subordinated Notes.

“Permitted Encumbrances” shall mean (a) those liens, encumbrances, hypothecs and other matters affecting title to any Real Property and found reasonably acceptable by the Administrative Agent, (b) as to any particular Real Property at any time, such easements, encroachments, covenants, restrictions, agreements, rights of way, minor defects, irregularities or encumbrances on title that could not reasonably be expected to materially impair such Real Property for the purpose for which it is held by the mortgagor or grantor thereof, or the lien or hypothec held by the Collateral Agent, (c) zoning and other municipal ordinances that are not violated in any material respect by the existing improvements and the present use made by the mortgagor or grantor thereof of the premises, except if permitted by a variance or “grandfather” provision, (d) general real estate taxes and assessments not yet delinquent, (e) such other items included on Schedule 5.01 hereto, and (f) such other similar items as the Administrative Agent may consent to (such consent not to be unreasonably withheld).

“Permitted Holdings Refinancing Indebtedness” shall mean Indebtedness of Holdings issued or given in exchange for, or all the proceeds of which are otherwise used to refinance, all or any portion of the then-outstanding Holdings 2012 Notes, Holdings 2013 Notes or Permitted Holdings Refinancing Indebtedness so long as (a) such Indebtedness has a weighted average life to maturity greater than or equal to the weighted average life to maturity of the Indebtedness being so refinanced (or, in the case of a refinancing of the Holdings 2012 Notes, such Indebtedness has a maturity no earlier than 91 days after the Term Loan Maturity Date (determined without regard to the proviso to the definition of Term Loan Maturity Date) or (unless otherwise provided in the applicable Incremental Term Loan Amendment), if such Indebtedness is incurred after the US Borrower has obtained any Incremental Term Loans or while any Commitments from Additional Lenders to make Incremental Term Loans remain in effect, 91 days after the maturity date for such Incremental Term Loans, unless all such Incremental Term Loans have been repaid in full and has no scheduled amortization prior to such date), (b) such refinancing does not (i) increase the amount of such Indebtedness outstanding immediately prior to such refinancing or (ii) add guarantors, obligors or security different from those which applied to the Indebtedness being so refinanced and (c) all other terms of such refinancing (including with respect to the amortization schedules, redemption provisions, maturities, covenants, defaults, remedies and cash interest payment provisions), are not materially less favorable to Holdings and its Subsidiaries than those previously existing with respect to the Indebtedness being so refinanced.

“Permitted Liens” shall have the meaning provided in Section 7.03.

“Permitted Sale-Leaseback Transaction” shall mean any sale by the US Borrower or any of its Subsidiaries of any asset first acquired by the US Borrower or such Subsidiary after the Effective Date, which asset, in each case, is thereafter leased by the purchaser thereof to the US Borrower or such Subsidiary; provided that (i) the consideration for such sale shall be entirely in cash, (ii) the consideration for such sale shall be in an amount at least equal to 100% of the aggregate amount expended by the US Borrower or such Subsidiary in so acquiring such asset, (iii) each such sale-leaseback transaction is effected within 90 days of the acquisition by the US Borrower or such Subsidiary of such asset, and (iv) in each case, the respective transaction is otherwise effected in accordance with the applicable requirements of Section 7.02(n).

“Permitted Subordinated Refinancing Documents” shall mean all notes evidencing any Permitted Subordinated Refinancing Indebtedness, any indenture or other agreement governing the terms of such Permitted Subordinated Refinancing Indebtedness and all other documents executed and delivered with respect to the foregoing documents, as in effect on the date such Permitted Subordinated Refinancing Indebtedness is first incurred and as the same may be amended, modified or supplemented from time to time in accordance with the requirements hereof and thereof.

“Permitted Subordinated Refinancing Indebtedness” shall mean Indebtedness of the US Borrower issued or given in exchange for, or all the proceeds of which are used to refinance, all or any portion of the then outstanding Senior Subordinated Notes, Additional Senior Subordinated Notes, or Permitted Subordinated Refinancing Indebtedness, so long as (a) such Indebtedness has a weighted average life to maturity greater than or equal to the weighted average life to maturity of the Indebtedness being so refinanced (or, in the case of a refinancing of the Senior Subordinated Notes, such Indebtedness has a maturity no earlier than 91 days after the Term Loan Maturity Date (determined without regard to the proviso to the definition of Term Loan Maturity Date) or (unless otherwise provided in the applicable Incremental Term Loan Amendment), if such Indebtedness is incurred after the US Borrower has obtained any Incremental Term Loans or while any Commitments from Additional Lenders to make Incremental Term Loans remain in effect, 91 days after the maturity date for such Incremental Term Loans, unless all such Incremental Term Loans have been repaid in full and has no scheduled amortization prior to such date), (b) such refinancing does not (i) increase the amount of such Indebtedness outstanding immediately prior to such refinancing or (ii) add guarantors, obligors or security from that which applied to the Indebtedness being so refinanced, (c) such Indebtedness has substantially the same (or, from the perspective of the Lenders, more favorable) subordination provisions, if any, as applied to the Indebtedness being so refinanced, and (d) all other terms of such refinancing (including with respect to the amortization schedules, redemption provisions, maturities, covenants, defaults and remedies), are not materially less favorable to the US Borrower and its Subsidiaries than those previously existing with respect to the Indebtedness being so refinanced.

“Person” shall mean any individual, partnership, joint venture, firm, corporation, limited liability company, association, trust or other enterprise or any Governmental Authority.

“Plan” shall mean any pension plan as defined in Section 3(2) of ERISA and that is subject to Title I of ERISA and that is maintained or contributed to by (or to which there is an

obligation to contribute of) Holdings or a Subsidiary of Holdings or an ERISA Affiliate, and each such plan for the five-year period immediately following the latest date on which Holdings, or a Subsidiary of Holdings or an ERISA Affiliate maintained, contributed to or had an obligation to contribute to such plan but excluding all Multiemployer Plans.

“Pledged Collateral” shall mean all of the “Collateral” (a) as defined in Section 3.01 of the US Collateral and Guaranty Agreement and (b) as defined in any Foreign Pledge Agreement or Foreign Security Agreement.

“Preferred Stock,” as applied to the capital stock of any Person, shall mean capital stock of such Person (other than common stock of such Person) of any class or classes (however designated) that ranks prior, as to the payment of dividends or as to the distribution of assets upon any voluntary or involuntary liquidation, dissolution or winding-up of such Person, to shares of capital stock of any other class of such Person, and shall include any Qualified Preferred Stock and Disqualified Preferred Stock.

“Prime Rate” shall mean the rate that JPMCB publicly announces from time to time as its prime lending rate in effect at its principal office in New York City, the Prime Rate to change when and as such prime lending rate changes. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer.

“Principal Amount” shall mean (a) the stated amount of each US Dollar Loan and/or (b) the US Dollar Equivalent of the stated amount of each Loan (other than a US Dollar Loan) or B/A, as the context may require.

“Pro Forma Balance Sheet” shall mean an unaudited pro forma consolidated balance sheet of Holdings and its Subsidiaries as of September 30, 2005, giving effect to the Transaction.

“Pro Forma Basis” shall mean, in connection with any calculation of compliance with any financial covenant or financial term, the calculation thereof after giving effect on a pro forma basis to (without duplication) (a) the incurrence of any Incremental Term Loan or other Indebtedness (other than revolving Indebtedness, except to the extent same is incurred (A) to finance the Transaction, (B) to refinance other outstanding Indebtedness (including to refinance any outstanding Indebtedness of an Unrestricted Subsidiary at the time same is designated as a Subsidiary pursuant to a Subsidiary Redesignation) or (C) to finance Permitted Acquisitions) or issuance of any Preferred Stock (other than Qualified Preferred Stock of Holdings) after the first day of the relevant Calculation Period as if such Indebtedness or Preferred Stock had been incurred or issued (and the proceeds thereof applied) on the first day of the relevant Calculation Period, (b) the permanent repayment of any Indebtedness (other than revolving Indebtedness except to the extent paid with Permitted Debt or Disqualified Preferred Stock) or Preferred Stock (other than Qualified Preferred Stock of Holdings) after the first day of the relevant Calculation Period as if such Indebtedness or Preferred Stock had been retired or redeemed on the first day of the relevant Calculation Period, (c) the Permitted Acquisition, if any, then being consummated as well as any other Permitted Acquisition consummated after the first day of the relevant Calculation Period and on or prior to the date of the respective Permitted Acquisition then being effected and (d) the Subsidiary Redesignation, if any, then being effected as well as any other

Subsidiary Redesignation after the first day of the relevant Calculation Period and on or prior to the date of the respective Subsidiary Redesignation then being designated with the following rules to apply in connection therewith:

(i)

all Indebtedness and Preferred Stock (other than Qualified Preferred Stock of Holdings) (A) (other than revolving Indebtedness, except to the extent same is incurred to finance the Transaction, to refinance other outstanding Indebtedness (including to refinance any outstanding Indebtedness of an Unrestricted Subsidiary at the time same is designated as a Subsidiary pursuant to a Subsidiary Redesignation), or to finance Permitted Acquisitions) incurred or issued after the first day of the relevant Calculation Period (whether incurred to finance a Permitted Acquisition, to refinance Indebtedness or otherwise) shall be deemed to have been incurred or issued (and the proceeds thereof applied) on the first day of the respective Calculation Period and remain outstanding through the date of determination (and thereafter in the case of projections pursuant to Section 6.13(a)(iv)) and (B) (other than revolving Indebtedness except to the extent paid with Permitted Debt or Disqualified Preferred Stock) permanently retired or redeemed after the first day of the relevant Calculation Period shall be deemed to have been retired or redeemed on the first day of the respective Calculation Period and remain retired through the date of determination (and thereafter in the case of projections pursuant to Section 6.13(a)(iv));

(ii)

all Indebtedness or Preferred Stock (other than Qualified Preferred Stock of Holdings) assumed to be outstanding pursuant to preceding clause (i) shall be deemed to have borne interest or accrued dividends, as the case may be, at (A) the rate applicable thereto, in the case of fixed rate Indebtedness or Preferred Stock or (B) the rates that would have been applicable thereto during the respective period when same was deemed outstanding, in the case of floating rate Indebtedness or Preferred Stock (although interest expense with respect to any Indebtedness or Preferred Stock for periods while same was actually outstanding during the respective period shall be calculated using the actual rates applicable thereto while same was actually outstanding); provided that for purposes of calculations pursuant to Section 6.13(a)(iv), all Indebtedness or Preferred Stock (whether actually outstanding or deemed outstanding) bearing interest at a floating rate of interest shall be tested on the basis of the rates applicable at the time the determination is made pursuant to said provisions;

(iii)

in making any determination of Consolidated EBITDA, pro forma effect shall be given to any Subsidiary Redesignation or Permitted Acquisition effected or consummated after the first day of the respective period being tested, taking into account (in the case of a Permitted Acquisition only), for any portion of the relevant period being tested, demonstrable cost savings actually achieved simultaneously with, or to be achieved within

the one-year period following, the closing of the respective Permitted Acquisition, which cost savings would be permitted to be recognized in pro forma statements prepared in accordance with Regulation S-X under the Securities Act, as if such cost savings were realized on the first day of the relevant period;

(iv)

without duplication of adjustments provided above, in case of any Permitted Acquisition consummated after the first day of the relevant period being tested, pro forma effect shall be given to the termination of operating leases or replacement of operating leases with Capitalized Lease Obligations or with other Indebtedness, and to any replacement of Capitalized Lease Obligations or other Indebtedness with operating leases, in each case effected at the time of the consummation of such Permitted Acquisition or thereafter, in each case if effected after the first day of the period being tested and prior to the date the respective determination is being made, as if such termination or replacement had occurred on the first day of the relevant period; and

(v)

in making any determination of Consolidated EBITDA for purposes of any calculation of the Adjusted Total Leverage Ratio, the Consolidated Interest Coverage Ratio and the Consolidated Fixed Charge Coverage Ratio only, (A) for any Permitted Acquisition that occurred during the last two fiscal quarters comprising the respective Test Period (and, in the case of Section 6.13, thereafter and on or prior to the relevant date of determination), there shall be added to Consolidated EBITDA the amount of Permitted Acquisition Additional Cost-Savings, determined in accordance with the definition thereof contained herein, expected to be realized with respect to such Permitted Acquisition, (B) for any Permitted Acquisition effected in the second fiscal quarter of the respective Test Period, the Consolidated EBITDA shall be increased by 50% of the Permitted Acquisition Additional Cost Savings estimated to arise in connection with the respective Permitted Acquisition and (C) for any Permitted Acquisition effected in the first fiscal quarter of the respective Test Period, the Consolidated EBITDA shall be increased by 25% of the Permitted Acquisition Additional Cost-Savings estimated to arise in connection with the respective Permitted Acquisition; provided that the aggregate additions to Consolidated EBITDA, for any period being tested, pursuant to this clause (v) shall not exceed 15% of the amount that would have been Consolidated EBITDA in the absence of the adjustment pursuant to this clause (v).

Notwithstanding anything to the contrary contained above, (a) for purposes of Sections 7.09 and 7.10 and, for purposes of all determinations of the Applicable Rate, pro forma effect (as otherwise provided above) shall only be given for events or occurrences that occurred during the respective Test Period but not thereafter and (b) for purposes of Section 6.13, the second sentence of the definition of “Unrestricted Subsidiary”, Section 2.23, Sections 7.04(n) and (o), Sections 7.06(j), (k) and (l) and Section 7.12(a), pro forma effect (as otherwise provided

above) shall be given for events or occurrences that occurred during the respective Test Period and thereafter but on or prior to the respective date of determination.

“Projections” shall mean the projections contained in the Confidential Information Memorandum, dated November 2005, that were prepared by or on behalf of the US Borrower in connection with the Transaction and delivered to the Administrative Agent and the Lenders prior to the Effective Date.

“Qualified Preferred Stock” shall mean any Preferred Stock of Holdings, the express terms of which shall provide that dividends thereon shall not be required to be paid at any time (and to the extent) that such payment would be prohibited by the terms of this Agreement or any other agreement of Holdings relating to outstanding indebtedness and that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event (including any Change of Control Event), cannot mature and is not mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, and is not redeemable, or required to be repurchased, at the sole option of the holder thereof (including upon the occurrence of a Change of Control Event), in whole or in part, on or prior to the date occurring two years after the Term Loan Maturity Date or (unless otherwise provided in the applicable Incremental Term Loan Amendment), if such Equity Interests are issued after the US Borrower has obtained any Incremental Term Loans or while any Commitments from Additional Lenders to make Incremental Term Loans remain in effect, two years after the maturity date for such Incremental Term Loans, unless all such Incremental Term Loans have been repaid in full and all Commitments in respect thereof shall have been terminated; provided that any such Preferred Stock of Holdings may provide that such Preferred Stock may be redeemable after all Loan Document Obligations have been paid in full in cash.

“Qualified Public Offering” shall mean a registered underwritten public offering of common stock of Holdings.

“Real Property” of any Person shall mean all of the right, title and interest of such Person in and to land, immovable property, improvements and fixtures, including Leaseholds.

“Recovery Event” shall mean the receipt by Holdings or any of its Subsidiaries of any insurance or condemnation proceeds (other than proceeds from business interruption insurance) payable (a) by reason of theft, physical destruction or damage or any other similar event with respect to any properties or assets of Holdings or any of its Subsidiaries (whether under any policy of insurance required to be maintained under Section 6.03 or otherwise) and (b) by reason of any condemnation, taking, seizing or similar event with respect to any properties or assets of Holdings or any of its Subsidiaries.

“Register” shall have the meaning provided in Section 10.04.

“Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof establishing reserve requirements.

“Regulation U” shall mean Regulation U of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof.

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

“Release” shall mean any release, disposing, discharging, injecting, spilling, pumping, leaking, leaching, dumping, emitting, escaping, emptying, seeping, placing, depositing, disposal, migrating or pouring, into, through or upon any land or water or air, or otherwise entering into the environment or within or upon any building, structure, facility or fixture.

“Reportable Event” shall mean an event described in Section 4043(c) of ERISA with respect to a Plan that is subject to Title IV of ERISA other than those events as to which the 30-day notice period is waived under subsection .22, .23, .24, .25, .27 or .28 of PBGC Regulation Section 4043 and the advance reporting events under subsections .61 to .68 of PBGC Regulation Section 4043.

“Required Lenders” shall mean Non-Defaulting Lenders, the sum of whose outstanding Term Loans, US Revolving Loan Commitments (or after the termination thereof, US Revolving Credit Exposures) and Global Revolving Loan Commitments (or after the termination thereof, Global Revolving Credit Exposures) represent an amount greater than 50% of the sum of all outstanding Term Loans of Non-Defaulting Lenders, the sum of the US Revolving Loan Commitments of all Non-Defaulting Lenders (or after the termination thereof, the aggregate US Revolving Credit Exposures of all Non-Defaulting Lenders at such time) and the sum of the Global Revolving Loan Commitments of all Non-Defaulting Lenders (or after the termination thereof, the aggregate Global Revolving Credit Exposures of all Non-Defaulting Lenders at such time). For purposes of this definition, the calculation of the outstanding principal amount of all Global Revolving Loans denominated in Canadian Dollars and Global Revolving Loans denominated in Sterling shall be determined by taking the US Dollar Equivalent thereof at the time of any such calculation.

“Retained Existing Indebtedness” shall have the meaning provided in Section 7.04(b).

“Restricted Indebtedness” shall mean Indebtedness of Holdings or any of its Subsidiaries, the payment, prepayment, redemption, repurchase or defeasance of which is restricted under Section 7.12.

“Revolving Availability Period” shall mean the period from and including the Effective Date to but excluding the earlier of (a) the Revolving Loan Maturity Date and (b) the date of termination of both the US Revolving Loan Commitments as provided for herein and the Global Revolving Loan Commitments as provided for herein.

“Revolving Borrowing” shall mean a US Revolving Borrowing or a Global Revolving Borrowing, as applicable.

“Revolving Facility Loan” shall have the meaning provided in Section 5.05(b).

“Revolving Loan” shall mean a Loan made pursuant to clause (b) or (c) of Section 2.01.

“Revolving Loan Maturity Date” shall mean December 22, 2010, or, if such date is not a Business Day, the next succeeding Business Day.

“S&P” shall mean Standard & Poor’s Ratings Group, Inc.

“Schedule I Lender” shall mean any Lender named on Schedule I to the Bank Act (Canada).

“Schedule I Reference Lender” shall mean any Schedule I Lender as may be agreed by the Canadian Borrower and the Administrative Agent from time to time.

“Schedule II Lender” shall mean any Lender named on Schedule II to the Bank Act (Canada) or any Lender that is a Canadian financial institution other than a Canadian chartered bank and is not a Schedule III Lender.

“Schedule III Lender” shall mean any Lender named on Schedule III to the Bank Act (Canada).

“Schedule III Reference Lender” shall mean JPMorgan Chase Bank, N.A., Toronto Branch.

“Scheduled Repayment” shall have the meaning provided in Section 2.12(b).

“SEC” shall mean the United States Securities and Exchange Commission or any successor thereto.

“Secured Parties” shall have the meaning provided in the respective Security Documents.

“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Security Agreement” shall mean each Foreign Security Agreement, the US Collateral and Guaranty Agreement and the US Collateral Assignment.

“Security Agreement Collateral” shall mean all of the “Collateral” as defined in any Security Agreement.

“Security Documents” shall mean and include the US Collateral and Guaranty Agreement, each Foreign Pledge Agreement, each Security Agreement, each Mortgage and each Additional Security and Guaranty Document, if any.

“Senior Subordinated Note Documents” shall mean the Senior Subordinated Notes, the Senior Subordinated Note Indenture and all other documents executed and delivered with respect to the Senior Subordinated Notes or the Senior Subordinated Note Indenture, as in effect on the Effective Date (for all purposes of this Agreement after the Effective Date (except as otherwise specifically provide herein), after giving effect to the consummation of the Debt Tender Offer), and as the same may be amended, modified or supplemented from time to time in accordance with the terms hereof and thereof.

“Senior Subordinated Note Indenture” shall mean the Indenture, dated as of November 28, 2001, among the US Borrower, the US Credit Parties that are subsidiary guarantors thereunder and the Senior Subordinated Note Indenture Trustee, as in effect on the Effective Date (for all purposes of this Agreement after the Effective Date (except as otherwise specifically provide herein), after giving effect to the consummation of the Debt Tender Offer) and as thereafter amended, modified or supplemented from time to time in accordance with the requirements hereof and thereof.

“Senior Subordinated Note Indenture Trustee” shall mean The Bank of New York or any successor thereto.

“Senior Subordinated Notes” shall mean the Existing Senior Subordinated Notes that remain outstanding after the consummation of the Debt Tender Offer.

“Sideco” shall mean Compass Minerals Nova Scotia Company, a Nova Scotia unlimited liability company and a direct Wholly-Owned Subsidiary of Canadian LP.

“Spot Exchange Rate” shall mean, on any day, (a) with respect to Sterling, the spot rate at which US Dollars are offered on such day by the Administrative Agent in London for Sterling at approximately 11:00 a.m. (London time) and (b) with respect to Canadian Dollars, the spot rate at which US Dollars are offered on such day by the Administrative Agent in Toronto for Canadian Dollars at approximately 11:00 a.m. (Toronto time).

“Start Date” shall have the meaning provided in the definition of Applicable Rate.

“Stated Amount” of each Letter of Credit shall mean the maximum amount available to be drawn thereunder (regardless of whether any conditions for drawing could then be met).

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

“Sterling Equivalent” shall mean, at any time for the determination thereof, the amount of Sterling that could be purchased with the amount of US Dollars (or any other foreign currency, as applicable) involved in such computation at the spot exchange rate therefor as quoted by the Administrative Agent as of 11:00 a.m. (local time) on the date two Business Days prior to the date of any determination thereof for purchase on such date.

“Subco” shall mean Compass Resources Canada Company, a Nova Scotia unlimited liability company and a direct Wholly-Owned Subsidiary of the Canadian Borrower.

“Subsidiary” of any Person shall mean and include (a) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries and (b) any partnership, limited liability company, association, joint venture or other entity (other than a corporation) in which such Person, directly or indirectly through Subsidiaries, has more than a 50% equity interest at the time. Notwithstanding the foregoing (and except for purposes of Sections 5.01, 5.04, 5.09, 5.12, 5.14 (other than the last sentence thereof), 5.16, 5.17, 5.20, 6.01(g), 6.02, 6.04, 6.06, 6.07, 6.08, 8.05, 8.06 and 8.09, and the definitions of Unrestricted Subsidiary, Foreign Unrestricted Subsidiary and Wholly-Owned Unrestricted Subsidiary contained herein), an Unrestricted Subsidiary shall be deemed not to be a Subsidiary of Holdings or any of its other Subsidiaries for purposes of this Agreement.

“Subsidiary Guarantor” shall mean (a) each US Credit Party (other than Holdings) in its capacity as a Guarantor under the US Collateral and Guaranty Agreement, and (b) each Foreign Credit Party in its capacity as a Guarantor under the Foreign Guaranty.

“Subsidiary Redesignation” shall have the meaning provided in the definition of “Unrestricted Subsidiary” contained in this Article I.

“Swap Agreement” shall mean any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions, provided that (a) no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of Holdings, any of the Borrowers or their respective Subsidiaries shall be a Swap Agreement and (b) no contract entered into in the ordinary course of business for the purchase of goods or services to be utilized in the business of Holdings, any of the Borrowers or their respective Subsidiaries shall be a Swap Agreement.

“Swingline Expiry Date” shall mean the date which is five Business Days prior to the Revolving Loan Maturity Date.

“Swingline Exposure” shall mean, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall be such Lender’s US Revolving Percentage of the total Swingline Exposure at such time.

“Swingline Lender” shall mean JPMCB, in its capacity as lender of Swingline Loans hereunder.

“Swingline Loan” shall mean a Loan made pursuant to Section 2.04.

“Swingline Note” shall mean a promissory note substantially in the form of Exhibit A-3 with blanks appropriately completed in conformity herewith.

“Synthetic Purchase Agreement” shall mean any swap, derivative or other agreement or combination of agreements pursuant to which Holdings or any of its Subsidiaries or any Unrestricted Subsidiary is or may become obligated to make (a) any payment not expressly permitted hereunder (i) in connection with a purchase by any Person other than Holdings or any of its Subsidiaries of any capital stock of or other equity interests in Holdings or any of its Subsidiaries, (ii) in respect of any Restricted Indebtedness or (iii) in respect of any liabilities of any Unrestricted Subsidiary or (b) any payment not expressly permitted hereunder the amount of which is determined by reference to (i) the price or value at any time of any capital stock of or other equity interests in Holdings or any of its Subsidiaries, (ii) Restricted Indebtedness or (iii) liabilities of any Unrestricted Subsidiary. Notwithstanding the foregoing, (A) the term “Synthetic Purchase Agreement” shall not include any swap, derivative or other agreement or combination of agreements to the extent that the inclusion of such agreement or combination of agreements in such term would restrict any transaction not otherwise restricted under this Agreement, unless such agreement or combination of agreements or the consummation of the transactions contemplated thereby is intended to have or would have an economic effect that is substantially equivalent to an economic effect of any transaction that is otherwise restricted under this Agreement and (B) any payment made or obligation incurred pursuant to a Synthetic Purchase Agreement that has an economic effect that is substantially equivalent to the economic effect of any payment or obligation expressly permitted by any provision of this Agreement will be deemed to have been made or incurred pursuant to such provision.

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

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

“Term Loan” shall mean a Loan made pursuant to Section 2.01(a).

“Term Loan Commitment” shall mean, with respect to each Lender, the commitment, if any, of such Lender to make a Term Loan hereunder on the Effective Date, expressed as an amount representing the maximum principal amount of the Term Loan to be made by such Lender hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.09 or 2.20(b) and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 2.23, Section 10.04 or Section 10.11(b). The initial amount of each Lender’s Term Loan Commitment is set forth opposite such Lender’s name in Schedule I directly below the column entitled “Term Loan Commitment”, or in the Assignment and Assumption Agreement or Incremental Term Loan Amendment pursuant to which such Lender shall have assumed its Term Loan Commitment, as applicable, and the initial aggregate amount of the Lenders’ Term Loan Commitments is $350,000,000, provided that such initial aggregate amount shall be reduced by the excess, if any, of (i) the aggregate principal amount of the Senior Subordinated Notes over (ii) $3,500,000 and such reduction shall be applied to the Lenders’ Term Loan Commitments on a pro rata basis in accordance with their respective Term Loan Commitments.

“Term Loan Maturity Date” shall mean December 22, 2012, or, if such date is not a Business Day, the next succeeding Business Day, provided that (a) if greater than $30,000,000

in aggregate principal amount of Senior Subordinated Notes is outstanding on any date that is 91 days prior to the maturity date of the Senior Subordinated Notes (“Senior Sub Debt Maturity Date”), then the Term Loan Maturity Date shall be such date that is 91 days prior to the Senior Sub Debt Maturity Date (but in no event later than December 22, 2012) or (b) if greater than $30,000,000 in aggregate principal amount of Holdings 2012 Notes is outstanding on any date that is 91 days prior to the maturity date of the Holdings 2012 Notes (“Holdco Debt Maturity Date”), then the Term Loan Maturity Date shall be the date that is 91 days prior to the Holdco Debt Maturity Date (but in no event later than December 22, 2012).

“Term Note” shall mean a promissory note substantially in the form of Exhibit A1 with blanks appropriately completed in conformity herewith.

“Test Period” shall mean, as of any date, the period of four consecutive fiscal quarters of the US Borrower then last ended prior to such date, in each case taken as one accounting period.

“Total Commitment” shall mean, at any time, the sum of the Total Term Loan Commitment, the US Total Revolving Loan Commitment and the Global Total Revolving Loan Commitment.

“Total Leverage Ratio” shall mean, on any date, the ratio of (a) Consolidated Debt on such date to (b) Consolidated EBITDA for the Test Period most recently ended prior to such date. All calculations of the Total Leverage Ratio shall be made on a Pro Forma Basis, it being understood and agreed that, as provided in the definition of Pro Forma Basis, the adjustments contained in clause (v) thereof shall not be taken into account in determining the Total Leverage Ratio.

“Total Term Loan Commitment” shall mean the sum of the Term Loan Commitments of each of the Term Lenders.

“Tranche” shall mean the respective facility and commitments utilized in making Loans and accepting and purchasing B/As hereunder (including any facility and commitments created pursuant to any Incremental Term Loan Amendment), with there being four separate Tranches on the Effective Date, i.e., Term Loans, US Revolving Loans, Global Revolving Loans and B/A Drawings and Swingline Loans.

“Transaction” shall mean, collectively, (a) the consummation of the Debt Tender Offer, (b) the entering into of the Credit Documents and the incurrence of all Loans hereunder on the Effective Date, (c) the paydown in full of all Existing Credit Agreement Indebtedness and the termination of all commitments related thereto, (d) the amendment, amendment and restatement, supplement or other modification of the guarantees and security interests with respect to such Existing Credit Agreement Indebtedness and commitments, in each case as contemplated by this Agreement, and (e) the payment of the Transaction Costs.

“Transaction Costs” shall have the meaning provided in Section 5.05(a)(i).

“Type” shall mean any type of Loan determined with respect to the interest option applicable thereto, i.e., a Base Rate Loan, a Eurodollar Loan, a Canadian Prime Rate Loan or a Canadian Base Rate Loan.

“UCC” shall mean the Uniform Commercial Code as in effect from time to time in the relevant jurisdiction.

“UK Borrower” shall mean Salt Union Limited, a company incorporated under the laws of England and Wales in the United Kingdom.

“UK Intercompany Loan” shall mean the loan made by the US Borrower to the UK Borrower prior to the Effective Date in the aggregate principal amount of £2,620,204, as of the date hereof.

“UK Intercompany Note” shall mean the promissory note issued by UK Borrower to US Borrower representing amounts owed under the UK Intercompany Loan.

“UK Lending Office” shall mean, as to any Global Revolving Lender, the applicable branch, affiliate or office of such Global Revolving Lender designated by such Global Revolving Lender to make Loans to the UK Borrower.

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

“UK Revolving Credit Exposure” shall mean, at any time, the sum of (a) the US Dollar Equivalent of the aggregate principal amount of the UK Revolving Loans denominated in Sterling outstanding at such time and (b) the aggregate principal amount of UK Revolving Loans denominated in US Dollars outstanding at such time. The UK Revolving Credit Exposure of any Lender at any time shall be such Lender’s Global Revolving Percentage of the total UK Revolving Credit Exposure at such time.

“UK Revolving Loan” shall mean a Loan made by a Global Revolving Lender pursuant to Section 2.01(c)(iii). Each UK Revolving Loan shall be a Eurodollar Loan.

“Unfunded Current Liability” of any Plan shall mean the amount, if any, by which the value of the accumulated plan benefits under the Plan, determined on a plan termination basis in accordance with actuarial assumptions at such time consistent with those prescribed by the PBGC for purposes of Sections 4022 and 4044 of ERISA, exceeds the fair market value of all plan assets allocable to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contributions).

“Unrestricted Subsidiary” shall mean any Subsidiary of the US Borrower that is acquired or created after the Effective Date and designated by the US Borrower as an Unrestricted Subsidiary hereunder by written notice to the Administrative Agent; provided that the US Borrower shall only be permitted to so designate a new Unrestricted Subsidiary after the Effective Date and so long as (a) no Default or Event of Default exists or would result therefrom, (b) all of the provisions of Section 7.15 shall have been complied with in respect of such newly-designated Unrestricted Subsidiary and such Unrestricted Subsidiary shall be capitalized (to the

extent capitalized by the US Borrower or any of its Subsidiaries) through Investments as permitted by, and in compliance with, Section 7.05(o), with any assets owned by such Unrestricted Subsidiary at the time of the initial designation thereof to be treated as Investments pursuant to Section 7.05(o), provided that at the time of the initial Investment by the US Borrower or any of its Wholly-Owned Subsidiaries in such Subsidiary, the US Borrower shall designate such entity as an Unrestricted Subsidiary in a written notice to the Administrative Agent, and (c) at all times after such designation, (i) such Subsidiary does not own any capital stock or other equity interests in, or Indebtedness of, and does not hold any Liens on any property of Holdings or any of its Subsidiaries that is not also (and will not, after giving effect to such designation, become) an Unrestricted Subsidiary and (ii) such Subsidiary is party to a tax sharing agreement with the US Borrower containing terms that, in the reasonable judgment of the US Borrower and the Administrative Agent, provide for a reasonable allocation of tax liabilities and benefits. The US Borrower may designate any Unrestricted Subsidiary to be a Subsidiary for purposes of this Agreement (each, a “Subsidiary Redesignation”); provided that (i) such Unrestricted Subsidiary, both before and after giving effect to such designation, shall be a Wholly-Owned Subsidiary of the US Borrower, (ii) no Default or Event of Default then exists or would occur as a consequence of any such Subsidiary Redesignation (including under Sections 7.03 and 7.04), (iii) all actions that would be required to be taken pursuant to Section 7.15(a) in connection with the establishment, creation or acquisition of a new Domestic Subsidiary or a new Wholly-Owned Foreign Subsidiary are taken at the time of the respective Subsidiary Redesignation, (iv) calculations are made by the US Borrower of compliance with the covenants contained in Sections 7.09 and 7.10 (in each case, giving effect to the last sentence appearing therein) for the relevant Calculation Period, on a Pro Forma Basis as if the respective Subsidiary Redesignation (as well as all other Subsidiary Redesignations theretofore consummated after the first day of such Calculation Period) had occurred on the first day of such Calculation Period, and such calculations shall show that such financial covenants would have been complied with if the Subsidiary Redesignation had occurred on the first day of such Calculation Period (for this purpose, (A) if the first day of the respective Calculation Period occurs prior to the Effective Date, calculated as if the covenants contained in Sections 7.09 and 7.10 (in each case, giving effect to the last sentence appearing therein) had been applicable from the first day of the Calculation Period and (B) using the covenant levels contained in such Sections 7.09 and 7.10 for the Test Period ending December 31, 2005, in connection with any Subsidiary Redesignation made prior to December 31, 2005), (v) all representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the date of such Subsidiary Redesignation (both before and after giving effect thereto), unless stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date, and (vi) the US Borrower shall have delivered to the Administrative Agent an officer’s certificate executed by an Authorized Officer of the US Borrower, certifying to the best of such officer’s knowledge, compliance with the requirements of preceding clauses (i) through (v), inclusive, and containing the calculations required by the preceding clause (iv).

“US Borrower” shall mean Compass Minerals Group, Inc., a Delaware corporation.

“US Collateral and Guaranty Agreement” shall have the meaning provided in Section 3.09.

“US Collateral Assignment” shall have the meaning provided in Section 3.11.

“US Credit Party” shall mean Holdings, the US Borrower and each other Guarantor that is also a Domestic Subsidiary.

“US Dollar Equivalent” shall mean, at any time for the determination thereof, (a) except as provided in clause (b) of this definition, the amount of US Dollars that could be purchased with the amount of Canadian Dollars or Sterling or any other foreign currency, as applicable, at the Spot Exchange Rate therefor on the date two Business Days prior to the date of any determination thereof for purchase on such date and shall be calculated in accordance with Section 10.06(b) and (b) for purposes of Section 10.06(d), the amount of US Dollars that could be purchased with the amount of the applicable currency involved in such computation at the spot exchange rate therefore as quoted or utilized by the Administrative Agent on the date of any determination thereof for purchase on such day.

“US Dollar Loan” shall mean all Loans denominated in US Dollars.

“US Dollars” and the sign “$” shall each mean freely transferable lawful money of the United States.

“US Holdco” shall mean Great Salt Lake Holdings, LLC, a Delaware limited liability company and a Wholly-Owned Subsidiary of the US Borrower.

“US Mortgaged Property” shall mean any Mortgaged Property located in the United States or any State thereof.

“US Perfection Certificate” shall mean a certificate in the form of Annex II to the US Collateral and Guaranty Agreement and any other form approved by the Collateral Agent.

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

“US Revolving Credit Exposure” shall mean, at any time, the sum of (a) the outstanding principal amount of US Revolving Loans, (b) the LC Exposure and (c) the Swingline Exposure at such time. The US Revolving Credit Exposure of any US Revolving Lender at any time shall be such Lender’s US Revolving Percentage of the total US Revolving Credit Exposure at such time.

“US Revolving Lender” shall mean, at any time, each Lender with a US Revolving Loan Commitment or with outstanding US Revolving Loans.

“US Revolving Loan” shall mean a Loan made by a US Revolving Lender pursuant to Section 2.01(b).

“US Revolving Loan Commitment” shall mean, with respect to each US Revolving Lender, the commitment, if any, of such Lender to make US Revolving Loans hereunder during the Revolving Availability Period, expressed as an amount expressed in US Dollars representing the maximum potential aggregate amount of such Lender’s US Revolving Credit Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.09 or 2.20(b) and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 10.04 or 10.11(b). The initial amount of each US Revolving Lender’s US Revolving Loan Commitment is set forth opposite such Lender’s name in Schedule I directly below the column entitled “US Revolving Loan Commitment”, or in the Assignment and Assumption Agreement pursuant to which such Lender shall have assumed its US Revolving Loan Commitment, as applicable. The initial aggregate amount of the US Revolving Lenders’ US Revolving Loan Commitments is $75,000,000.

“US Revolving Note” shall mean a promissory note substantially in the form of Exhibit A-2A with blanks appropriately completed in conformity herewith.

“US Revolving Percentage” shall mean, with respect to any US Revolving Lender, the percentage of the total US Revolving Loan Commitments represented by such Lender’s US Revolving Loan Commitment. If a calculation involving the US Revolving Percentage is required to be made after the US Revolving Loan Commitments have terminated or expired, the US Revolving Percentages shall be determined based upon the US Revolving Loan Commitments most recently in effect, giving effect to any assignments.

“US Total Revolving Loan Commitment” shall mean, at any time, the sum of the US Revolving Loan Commitments of each of the US Revolving Lenders at such time.

“US Total Unutilized Revolving Loan Commitment” shall mean, at any time, (a) the US Total Revolving Loan Commitment at such time less (b) the sum of the total US Revolving Credit Exposures of all the US Revolving Lenders at such time.

“White Salt Sale” shall mean the sale by the UK Borrower, substantially on the terms disclosed to the Administrative Agent prior to the date hereof, of the real property owned by the UK Borrower on which its evaporated salt production facility is located in Xxxxxx Xxxxx, Xxxxxxxx, Xxxxxx Xxxxxxx, and certain fixed and intangible assets related thereto, in each case as further described in Exhibit K.

“Wholly-Owned Domestic Subsidiary” shall mean, as to any Person, any Wholly-Owned Subsidiary of such Person that is a Domestic Subsidiary.

“Wholly-Owned Foreign Subsidiary” shall mean, as to any Person, any Wholly-Owned Subsidiary of such Person that is a Foreign Subsidiary.

“Wholly-Owned Subsidiary” shall mean, as to any Person, (a) any corporation 100% of whose capital stock (other than director’s qualifying shares and/or other nominal amounts of shares required to be held other than by such Person under applicable law) is at the time owned by such Person and/or one or more Wholly-Owned Subsidiaries of such Person and (b) any partnership, limited liability company, association, joint venture or other entity in which

such Person and/or one or more Wholly-Owned Subsidiaries of such Person has a 100% equity interest at such time; provided that (i) except as provided in the last sentence of the definition of Subsidiary and (ii) other than in the definition of Wholly-Owned Unrestricted Subsidiary, no Unrestricted Subsidiary shall be considered a Wholly-Owned Subsidiary.

“Wholly-Owned Unrestricted Subsidiary” shall mean any Wholly-Owned Subsidiary that is an Unrestricted Subsidiary.

“Written” (whether lower or upper case) or “in writing” shall mean any form of written communication or a communication by means of telex, facsimile device, telegraph or cable.

SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Tranche (e.g., a “Global Revolving Loan”, “US Revolving Loan”, etc.) or by Type (e.g., a “Eurodollar Loan”) or by Tranche and Type (e.g., a “Eurodollar Global Revolving Loan”, “Eurodollar US Revolving Loan”, etc.). Borrowings also may be classified and referred to by Tranche (e.g., a “Term Borrowing”, “Global Revolving Borrowing”, “US Revolving Borrowing”, etc.) or by Type (e.g., a “Eurodollar Borrowing”) or by Tranche and Type (e.g., a “Eurodollar Global Revolving Borrowing”, “Eurodollar US Revolving Borrowing”, etc.).

SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall, if such words are not followed by the phrase “without limitation”, be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

ARTICLE II

Amount and Terms of Credit

SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein:

(a) each Term Lender agrees to make a Term Loan to the US Borrower in US Dollars on the Effective Date in a principal amount not exceeding its Term Loan Commitment;

(b) each US Revolving Lender agrees, from time to time during the Revolving Availability Period, to make US Revolving Loans to the US Borrower in US Dollars in an aggregate Principal Amount that will not result in such US Revolving Lender’s US Revolving Credit Exposure exceeding such Lender’s US Revolving Loan Commitment;

(c) each Global Revolving Lender agrees, from time to time during the Revolving Availability Period, to make (i) Global US Revolving Loans to the US Borrower in US Dollars in an aggregate Principal Amount that will not result in such Lender’s Global Revolving Credit Exposure exceeding such Lender’s Global Revolving Loan Commitment, (ii) Canadian Revolving Loans to the Canadian Borrower from its Canadian Lending Office in Canadian Dollars and/or US Dollars and/or to cause its Canadian Lending Office to accept and purchase or arrange for the acceptance and purchase of drafts drawn by the Canadian Borrower in Canadian Dollars as B/As in an aggregate Principal Amount that will not result in (A) such Lender’s Global Revolving Credit Exposure exceeding such Lender’s Global Revolving Loan Commitment or (B) the Canadian Revolving Credit Exposure exceeding $40,000,000 and (iii) UK Revolving Loans to the UK Borrower from its UK Lending Office in Sterling and/or US Dollars in an aggregate Principal Amount that will not result in (A) such Lender’s Global Revolving Credit Exposure exceeding such Lender’s Global Revolving Loan Commitment or (B) the UK Revolving Credit Exposure exceeding $10,000,000.

Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow Revolving Loans. Amounts prepaid or repaid in respect of Term Loans may not be reborrowed.

SECTION 2.02. Loans and Borrowings. (a) Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting of Loans of the same Tranche and Type made to the applicable Borrower by the applicable Lenders (i) in the case of Term Borrowings, ratably in accordance with their respective Term Loan Commitments, (ii) in the case of US Revolving Borrowings, ratably in accordance with their respective US Revolving Loan Commitments and (iii) in the case of Global Revolving Borrowings, ratably in accordance with their respective Global Revolving Loan Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required.

(b) Subject to Section 2.15, (i) each Term Borrowing, US Revolving Borrowing and Global US Revolving Borrowing shall be comprised entirely of Base Rate Loans or Eurodollar Loans as the US Borrower may request in accordance herewith; provided that all such Borrowings made on the Effective Date must be made as Base Rate Borrowings, (ii) each Canadian Revolving Borrowing (A) denominated in Canadian Dollars shall be comprised entirely of Canadian Prime Rate Loans and (B) denominated in US Dollars shall be comprised

entirely of Eurodollar Loans or Canadian Base Rate Loans, as the Canadian Borrower may request in accordance herewith, provided that all such Borrowings made on the Effective Date must be made as Canadian Base Rate Loans, and (iii) each UK Revolving Borrowing shall be comprised entirely of Eurodollar Loans. Each Swingline Loan shall be a Base Rate Loan. Subject to Section 2.20, each Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the applicable Borrower to repay such Loan in accordance with the terms of this Agreement.

(c) At the commencement of each Interest Period for any Term Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000. At the time that each US Revolving Borrowing or Global Revolving Borrowing denominated in US Dollars is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000; provided that a Base Rate US Revolving Borrowing may be in an aggregate amount that is equal to the US Total Unutilized Revolving Loan Commitment (or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e)) and a Base Rate Global US Revolving Borrowing may be in an aggregate amount that is equal to the Global Total Unutilized Revolving Loan Commitment. At the commencement of each Interest Period for any Eurodollar Borrowing that is denominated in Sterling, such Borrowing shall be in an aggregate amount that is an integral multiple of £500,000 and not less than £1,000,000; provided that a Eurodollar Borrowing that is denominated in Sterling may be in an aggregate amount the US Dollar Equivalent of which is equal to the Global Total Unutilized Revolving Loan Commitment so long as after giving effect to such Borrowing the UK Revolving Credit Exposure does not exceed $10,000,000. At the time that each Canadian Prime Rate Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of C$500,000 and not less than C$1,000,000; provided that a Canadian Prime Rate Borrowing may be in an aggregate amount the US Dollar Equivalent of which is equal to the Global Total Unutilized Revolving Loan Commitment so long as after giving effect to such Borrowing the Canadian Revolving Credit Exposure does not exceed $40,000,000. Each Swingline Loan shall be in an amount that is an integral multiple of $100,000 and not less than $500,000. Borrowings of more than one Type and Tranche may be outstanding at the same time; provided that there shall not at any time be more than a total of 20 Eurodollar Borrowings outstanding.

(d) Notwithstanding any other provision of this Agreement, the applicable Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing or B/A Drawing if the Interest Period requested with respect thereto would end after the applicable Maturity Date.

SECTION 2.03. Requests for Borrowings. To request a Revolving Borrowing or Term Borrowing, the applicable Borrower shall notify the Administrative Agent of such request by telephone or telecopy (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., Local Time, three Business Days before the date of the proposed Borrowing, (b) in the case of a Base Rate Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the date of the proposed Borrowing, provided that any such notice of a Base Rate US Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e) may be given not later than 10:00

a.m., New York City time, on the date of the proposed Borrowing, (c) in the case of a Canadian Base Rate Borrowing, not later than 11:00 a.m., Local Time, one Business Day before the date of the proposed Borrowing and (d) in the case of a Canadian Prime Rate Borrowing, not later than 11:00 a.m., Local Time, one Business Day before the date of the proposed Borrowing. Each such telephonic Notice of Borrowing shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Notice of Borrowing in a form approved by the Administrative Agent and signed by the applicable Borrower (or by the US Borrower on behalf of the applicable Borrower). Each such telephonic and written Notice of Borrowing shall specify the following information in compliance with Section 2.02:

(i)	the Borrower requesting such Borrowing (or on whose behalf the US Borrower is requesting such Borrowing);

(ii)	whether the requested Borrowing is to be a Term Borrowing, US Revolving Borrowing or Global Revolving Borrowing;

(iii)

the currency and the aggregate amount of such Borrowing;

(iv)	the date of such Borrowing, which shall be a Business Day;

(v)	the Type of such Borrowing;

(vi)	in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and

(vii)

the location and number of the applicable Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.06.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be (A) in the case of a US Revolving Borrowing, Global US Revolving Borrowing or Term Borrowing, a Base Rate Borrowing, (B) in the case of a Canadian Revolving Borrowing, a Canadian Prime Rate Borrowing and (C) in the case of a UK Revolving Borrowing, a Eurodollar Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the applicable Borrower shall be deemed to have selected an Interest Period of one month’s duration. Promptly following receipt of a Notice of Borrowing in accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing. If no currency is specified (1) with respect to any Canadian Revolving Borrowing, then the currency of such Canadian Revolving Borrowing shall be Canadian Dollars and (2) with respect to any UK Revolving Borrowing, then the currency of such UK Revolving Borrowing shall be Sterling.

SECTION 2.04. Swingline Loans. (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make Swingline Loans to the US Borrower from time to time during the Revolving Availability Period, in an aggregate Principal Amount at any time outstanding that will not result in (i) the aggregate principal amount of

outstanding Swingline Loans exceeding $15,000,000 or (ii) the sum of the total US Revolving Credit Exposures exceeding the US Total Revolving Loan Commitment. Within the foregoing limits and subject to the terms and conditions set forth herein, the US Borrower may borrow, prepay and reborrow Swingline Loans.

(b) To request a Swingline Loan, the US Borrower shall notify the Administrative Agent of such request by telephone (confirmed by telecopy), not later than 12:00 noon, New York City time, on the day of a proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline Loan. The Administrative Agent will promptly advise the Swingline Lender of any such notice received from the US Borrower. The Swingline Lender shall make each Swingline Loan available to the US Borrower by means of a credit to the general deposit account of the US Borrower with the Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e), by remittance to the Letter of Credit Issuer) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan.

(c) The Swingline Lender may by written notice given to the Administrative Agent not later than 12:00 noon, New York City time, on any Business Day require the US Revolving Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such notice shall specify the aggregate amount of Swingline Loans in which US Revolving Lenders will participate. Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each US Revolving Lender, specifying in such notice such Lender’s US Revolving Percentage of such Swingline Loan or Loans. Each US Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s US Revolving Percentage of such Swingline Loan or Loans. Each US Revolving Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each US Revolving Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the US Revolving Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from the US Revolving Lenders. The Administrative Agent shall notify the US Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender. Any amounts received by the Swingline Lender from the US Borrower (or other party on behalf of the US Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the US Revolving Lenders that shall have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests may appear. The purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the US Borrower of any default in the payment thereof.

SECTION 2.05. Letters of Credit. (a) General. On the Effective Date, each Existing Letter of Credit will automatically, without any action on the part of any person, be deemed to be a Letter of Credit issued hereunder for the account of the applicable Borrower for all purposes of this Agreement and the other Credit Documents. In addition, subject to the terms and conditions set forth herein, the US Borrower may request the issuance of Letters of Credit for its own account (or for the account of any Subsidiary of the US Borrower so long as the US Borrower is a co-applicant with respect to such Letter of Credit), in a form reasonably acceptable to the Administrative Agent and the Letter of Credit Issuer, at any time and from time to time during the Revolving Availability Period, provided that no Letter of Credit Issuer shall be obligated to issue any Canadian Dollar Letter of Credit unless such Letter of Credit Issuer agrees to do so. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the US Borrower to, or entered into by the US Borrower with, the Letter of Credit Issuer relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

(b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the US Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Letter of Credit Issuer) to the Letter of Credit Issuer and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the currency in which such Letter of Credit is to be denominated (which shall be US Dollars or, if agreed to by the applicable Letter of Credit Issuer and subject to Section 2.25, Canadian Dollars), the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit (a “Letter of Credit Request”). If requested by the Letter of Credit Issuer, the US Borrower also shall submit a letter of credit application on the Letter of Credit Issuer’s standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the US Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed $50,000,000 and (ii) the total US Revolving Credit Exposures shall not exceed the US Total Revolving Loan Commitment.

(c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five Business Days prior to the Revolving Loan Maturity Date.

(d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Letter of Credit Issuer or the Lenders, the Letter of Credit Issuer hereby grants to each US Revolving Lender, and each US Revolving Lender (each, a “Participant”) hereby acquires from

the Letter of Credit Issuer, a participation in such Letter of Credit or increase therein, as applicable, equal to such Lender’s US Revolving Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each US Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent in US Dollars, for the account of the Letter of Credit Issuer with respect to each Letter of Credit, such Lender’s US Revolving Percentage of (i) each LC Disbursement made by the Letter of Credit Issuer in US Dollars and (ii) the US Dollar Equivalent, using the Spot Exchange Rate on the date such payment is required, of each LC Disbursement made by the Letter of Credit Issuer in Canadian Dollars with respect to such Letter of Credit and not reimbursed by the US Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the US Borrower for any reason (or, if such reimbursement payment was refunded in Canadian Dollars, the US Dollar Equivalent thereof using the Spot Exchange Rate on the date of such refund). Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.

(e) Reimbursement. If the Letter of Credit Issuer shall make any LC Disbursement in respect of a Letter of Credit, the US Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement in US Dollars or (subject to the two immediately succeeding sentences), if the applicable Letter of Credit is a Canadian Dollar Letter of Credit, in Canadian Dollars not later than 12:00 noon, New York City time, on the Business Day immediately following the day that the US Borrower receives notice of such LC Disbursement; provided that, in the case of any LC Disbursement made in US Dollars, the US Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or 2.04 that such payment be financed with a Base Rate US Revolving Borrowing or Swingline Loan in an equivalent amount and, to the extent so financed, the US Borrower’s obligation to make such payment shall be discharged and replaced by the resulting Base Rate US Revolving Borrowing or Swingline Loan. If the US Borrower’s reimbursement of, or obligation to reimburse, any amounts in Canadian Dollars would subject the Administrative Agent, the Letter of Credit Issuer or any Lender to any stamp duty, ad valorem charge or similar tax that would not be payable if such reimbursement were made or required to be made in US Dollars, the US Borrower shall reimburse each LC Disbursement made in Canadian Dollars in US Dollars, in an amount equal to the US Dollar Equivalent, calculated using the applicable Spot Exchange Rate on the date such LC Disbursement is made, of such LC Disbursement. If the US Borrower fails to make such payment when due, (i) if such payment relates to a Canadian Dollar Letter of Credit, automatically and with no further action required, the US Borrower’s obligation to reimburse the applicable LC Disbursement shall be permanently converted into an obligation to reimburse the US Dollar Equivalent, calculated using the Spot Exchange Rate on the date which such payment was due, of such LC Disbursement and (ii) the Administrative Agent shall notify each US Revolving Lender of the applicable LC Disbursement, the US Dollar Equivalent thereof (if such LC Disbursement relates to a Canadian Dollar Letter of Credit), the payment then due from the

US Borrower in respect thereof and the amount of such Lender’s participation in such LC Disbursement, determined as set forth in paragraph (d) above. Promptly following receipt of such notice, each US Revolving Lender shall pay to the Administrative Agent its participation in such LC Disbursement (determined as provided in clause (i) above, if such payment relates to a Canadian Dollar Letter of Credit), in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the US Revolving Lenders), and the Administrative Agent shall promptly pay to the Letter of Credit Issuer the amounts so received by it from the US Revolving Lenders. Promptly following receipt by the Administrative Agent of any payment from the US Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Letter of Credit Issuer or, to the extent that US Revolving Lenders have made payments pursuant to this paragraph to reimburse the Letter of Credit Issuer, then to such Lenders and the Letter of Credit Issuer as their interests may appear. Any payment made by a US Revolving Lender pursuant to this paragraph to reimburse the Letter of Credit Issuer for any LC Disbursement (other than the funding of Base Rate US Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the US Borrower of its obligation to reimburse such LC Disbursement.

(f) Obligations Absolute. The US Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the Letter of Credit Issuer under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the US Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor the Letter of Credit Issuer, nor any of their respective Affiliates, nor any of their (and their respective Affiliates’) respective directors, officers, employees, agents and advisors, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Letter of Credit Issuer; provided that the foregoing shall not be construed to excuse the Letter of Credit Issuer from liability to the US Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the US Borrower to the extent permitted by applicable law) suffered by the US Borrower that are caused by the Letter of Credit Issuer’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Letter of Credit Issuer (as finally determined by a court of

competent jurisdiction), the Letter of Credit Issuer shall be deemed to have exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented that appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Letter of Credit Issuer may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

(g) Disbursement Procedures. The Letter of Credit Issuer shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. The Letter of Credit Issuer shall promptly notify the Administrative Agent and the US Borrower by telephone (confirmed by telecopy) of such demand for payment and whether the Letter of Credit Issuer has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the US Borrower of its obligation to reimburse the Letter of Credit Issuer and the US Revolving Lenders with respect to any such LC Disbursement.

(h) Interim Interest. If the Letter of Credit Issuer shall make any LC Disbursement, then, unless the US Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the US Borrower reimburses such LC Disbursement, at the rate per annum then applicable to Base Rate Revolving Loans; provided that, if the US Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.14(c) shall apply; provided further that, in the case of any LC Disbursement made under a Canadian Dollar Letter of Credit, the amount of interest due with respect thereto shall (i) in the case of any LC Disbursement that is reimbursed on or before the Business Day immediately succeeding such LC Disbursement, (A) be payable in Canadian Dollars and (B) bear interest at the rate per annum then applicable to Canadian Prime Rate Loans, subject to Section 2.14(c), and (ii) in the case of any LC Disbursement that is reimbursed after the Business Day immediately succeeding such LC Disbursement, (A) be payable in US Dollars, (B) accrue on the US Dollar Equivalent, calculated using the Spot Exchange Rate on the date such LC Disbursement was made, of such LC Disbursement and (C) bear interest at the rate per annum then applicable to Base Rate Revolving Loans, subject to Section 2.14(c). Interest accrued pursuant to this paragraph shall be for the account of the Letter of Credit Issuer, except that interest accrued on and after the date of payment by any US Revolving Lender pursuant to paragraph (e) of this Section to reimburse the Letter of Credit Issuer shall be for the account of such Lender to the extent of such payment.

(i) Replacement of the Letter of Credit Issuer. Any Letter of Credit Issuer may be replaced at any time by written agreement among the US Borrower, the Administrative Agent, the replaced Letter of Credit Issuer and the successor Letter of Credit Issuer; provided that no Letters of Credit issued by the existing Letter of Credit Issuer shall terminate solely due to such replacement of the Letter of Credit Issuer. The Administrative Agent shall notify the Lenders of any such replacement of the Letter of Credit Issuer. At the time any such replacement shall become effective, the US Borrower shall pay all unpaid fees accrued for the account of the replaced Letter of Credit Issuer pursuant to Section 2.13(b). From and after the

effective date of any such replacement, (i) the successor Letter of Credit Issuer shall have all the rights and obligations of the Letter of Credit Issuer under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Letter of Credit Issuer” shall be deemed to refer to such successor or to any previous Letter of Credit Issuer, or to such successor and all previous Letter of Credit Issuers, as the context shall require. After the replacement of Letter of Credit Issuer hereunder, the replaced Letter of Credit Issuer shall remain a party hereto and shall continue to have all the rights and obligations of a Letter of Credit Issuer under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.

(j) Cash Collateralization. If any Event of Default shall occur and be continuing, on the Business Day that the US Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, US Revolving Lenders with LC Exposure representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the US Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that (i) the portions of such amount attributable to undrawn Canadian Dollar Letters of Credit or LC Disbursements in Canadian Dollars that the US Borrower is not late in reimbursing shall be deposited in Canadian Dollars in the actual amounts of such undrawn Letters of Credit and LC Disbursements and (ii) the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable in US Dollars, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the US Borrower described in Section 8.05. For the purposes of this paragraph, the Canadian Dollar LC Exposure shall be calculated using the Spot Exchange Rate on the date that notice demanding cash collateralization is delivered to the US Borrower. Each such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the US Borrower under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the US Borrower’s risk and expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Letter of Credit Issuer for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the US Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of US Revolving Lenders with LC Exposure representing greater than 50% of the total LC Exposure), be applied to satisfy other obligations of the US Borrower under this Agreement. If the US Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the US Borrower within three Business Days after all Events of Default have been cured or waived. If the US Borrower is required to provide an amount of cash collateral hereunder pursuant to Section 2.12(a), such amount (to the extent not applied as aforesaid) shall be returned to the US Borrower as and to the extent that, after giving effect to

such return, the US Borrower would remain in compliance with Section 2.12(a) and no Default shall have occurred and be continuing.

(k) Issuing Bank Agreements. Unless otherwise requested by the Administrative Agent, each Letter of Credit Issuer shall report in writing to the Administrative Agent (i) on the first Business Day of each week, the daily activity (set forth by day) in respect of Letters of Credit during the immediately preceding week, including all issuances, extensions, amendments and renewals, all expirations and cancelations and all disbursements and reimbursements, (ii) on or prior to each Business Day on which such Letter of Credit Issuer expects to issue, amend, renew or extend any Letter of Credit, the date of such issuance, amendment, renewal or extension, and the aggregate face amount and currencies of the Letters of Credit to be issued, amended, renewed or extended by it and outstanding after giving effect to such issuance, amendment, renewal or extension occurred (and whether the amount thereof changed), it being understood that such Letter of Credit Issuer shall not permit any issuance, renewal, extension or amendment resulting in an increase in the amount of any Letter of Credit to occur without first obtaining written (or, with respect to any Letter of Credit Issuer, if the Administrative Agent so agrees with respect to such Letter of Credit Issuer, telephonic) confirmation from the Administrative Agent that it is then permitted under this Agreement, (iii) on each Business Day on which such Letter of Credit Issuer makes any LC Disbursement in respect of any Letter of Credit, the date of such LC Disbursement and the amount and currency of such LC Disbursement, (iv) on any Business Day on which the US Borrower fails to reimburse an LC Disbursement required to be reimbursed to such Letter of Credit Issuer on such day, the date of such failure, and the amount and currency of such LC Disbursement and (v) on any other Business Day, such other information as the Administrative Agent shall reasonably request.

(l) Conversion. In the event that the Loans become immediately due and payable on any date pursuant to Article VIII, all amounts (i) that the US Borrower is at the time or thereafter becomes required to reimburse or otherwise pay to the Administrative Agent in respect of LC Disbursements made under any Canadian Dollar Letter of Credit (other than amounts in respect of which the US Borrower has deposited cash collateral pursuant to Section 2.05(j), if such cash collateral was deposited in Canadian Dollars to the extent so deposited or applied), (ii) that the Lenders are at the time or thereafter become required to pay to the Administrative Agent and the Administrative Agent is at the time or thereafter becomes required to distribute to the Letter of Credit Issuer pursuant to paragraph (e) of this Section 2.05 in respect of unreimbursed LC Disbursements made under any Canadian Dollar Letter of Credit and (iii) of each Lender’s participation in any Canadian Dollar Letter of Credit under which an LC Disbursement has been made shall, automatically and with no further action required, be converted into the US Dollar Equivalent, calculated using the Spot Exchange Rate on such date (or in the case of any LC Disbursement made after such date, on the date such LC Disbursement is made), of such amounts. On and after such conversion, all amounts accruing and owed to the Administrative Agent, the Letter of Credit Issuer or any Lender in respect of the obligations described in this paragraph shall accrue and be payable in US Dollars at the rates otherwise applicable hereunder.

SECTION 2.06. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it and disburse the Discount Proceeds (net of applicable acceptance

fees) of each B/A to be accepted and purchased by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be made as provided in Section 2.04. The Administrative Agent will make such Loans or Discount Proceeds (net of applicable acceptance fees) available to the applicable Borrower by promptly crediting the amounts so received, in like funds, to an account of the applicable Borrower (i) in New York City in the case of Loans made to the US Borrower, (ii) in Toronto, in the case of Canadian Revolving Loans or B/As and (iii) in London, in the case of UK Revolving Loans, and in each case designated by the applicable Borrower in the applicable Notice of Borrowing; provided that Base Rate US Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be remitted by the Administrative Agent to the Letter of Credit Issuer.

(b) Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing or acceptance and purchase of B/As that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing or the applicable Discount Proceeds (net of applicable acceptance fees), the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the applicable Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing or the applicable Discount Proceeds (net of applicable acceptance fees) available to the Administrative Agent, then the applicable Lender and the applicable Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the applicable Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of a Lender, the greater of (A)(1) the Federal Funds Effective Rate, in the case of Loans denominated in US Dollars and (2) the rate reasonably determined by the Administrative Agent to be the cost to it of funding such amount, in the case of Loans denominated in Canadian Dollars or Sterling, and (B) a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, or (ii) in the case of a Borrower, the interest rate applicable to (A) Base Rate Loans, if such Borrower is the US Borrower, (B) Canadian Base Rate Loans, if such Borrower is the Canadian Borrower in the case of a Loan denominated in US Dollars, (C) Canadian Prime Rate Loans, if such Borrower is the Canadian Borrower in the case of a Loan denominated in Canadian Dollars or a B/A and (D) Eurodollar Loans with an Interest Period of one month, if such Borrower is the UK Borrower. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.

SECTION 2.07. Canadian Bankers’ Acceptances. (a) Each acceptance and purchase of B/As of a single Contract Period pursuant to Section 2.01(c)(ii) or Section 2.08 shall be made ratably by the Global Revolving Lenders in accordance with the amounts of their Global Revolving Loan Commitments. The failure of any Global Revolving Lender to accept or cause its Canadian Lending Office to accept any B/A required to be accepted by it shall not relieve any other Global Revolving Lender of its obligations hereunder; provided that the Global Revolving Loan Commitments are several and no Global Revolving Lender

shall be responsible for any other Global Revolving Lender’s failure to accept B/As as required.

(b) The B/As of a single Contract Period accepted and purchased on any date shall be in an aggregate amount that is an integral multiple of C$1,000,000 and not less than C$2,000,000. The face amount of each B/A shall be C$100,000 or any whole multiple thereof. If any Global Revolving Lender’s ratable share of the B/As of any Contract Period to be accepted on any date would not be an integral multiple of C$100,000, the face amount of the B/As accepted by such Lender may be increased or reduced to the nearest integral multiple of C$100,000 by the Administrative Agent in its sole discretion. B/As of more than one Contract Period may be outstanding at the same time; provided that there shall not at any time be more than a total of five B/A Drawings outstanding (or such greater number as the Administrative Agent shall agree).

(c) To request an acceptance and purchase of B/As, the Canadian Borrower shall notify the Administrative Agent of such request by telephone or by telecopy not later than 11:00 a.m., Local Time, one Business Day before the date of such acceptance and purchase. Each such request shall be irrevocable and, if telephonic, shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written request in a form approved by the Administrative Agent and signed by the Canadian Borrower. Each such telephonic and written request shall specify the following information:

(i)	the aggregate face amount of the B/As to be accepted and purchased;

(ii)	the date of such acceptance and purchase, which shall be a Business Day;

(iii)

the Contract Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Contract Period” (and which shall in no event end after the Maturity Date); and

(iv)

the location and number of the Canadian Borrower’s account to which any funds are to be disbursed, which shall comply with the requirements of Section 2.06. If no Contract Period is specified with respect to any requested acceptance and purchase of B/As, then the Canadian Borrower shall be deemed to have selected a Contract Period of 30 days’ duration.

Promptly following receipt of a request in accordance with this paragraph, the Administrative Agent shall advise each Global Revolving Lender of the details thereof and of the amount of B/As to be accepted and purchased by such Lender.

(d) The Canadian Borrower hereby appoints each Global Revolving Lender as its attorney to sign and endorse on its behalf, manually or by facsimile or mechanical signature, as and when deemed necessary by such Global Revolving Lender, blank forms of B/As. It shall be the responsibility of each Global Revolving Lender to maintain an adequate supply of blank forms of B/As for acceptance under this Agreement. The Canadian Borrower recognizes and agrees that all B/As signed and/or endorsed on its behalf by any Global Revolving Lender shall bind the Canadian Borrower as fully and effectually as if manually signed and duly issued by

authorized officers of the Canadian Borrower. Each Global Revolving Lender is hereby authorized to issue such B/As endorsed in blank in such face amounts as may be determined by such Global Revolving Lender; provided that the aggregate face amount thereof is equal to the aggregate face amount of B/As required to be accepted by such Lender. No Global Revolving Lender shall be liable for any damage, loss or claim arising by reason of any loss or improper use of any such instrument unless such loss or improper use results from the bad faith, gross negligence or willful misconduct of such Lender. Each Global Revolving Lender shall maintain a record with respect to B/As (i) received by it from the Administrative Agent in blank hereunder, (ii) voided by it for any reason, (iii) accepted and purchased by it hereunder and (iv) canceled at their respective maturities. Each Global Revolving Lender further agrees to retain such records in the manner and for the periods provided in applicable provincial or Federal statutes and regulations of Canada and to provide such records to the Canadian Borrower upon its request and at its expense. Upon request by the Canadian Borrower, a Global Revolving Lender shall cancel all forms of B/A that have been pre-signed or pre-endorsed on behalf of the Canadian Borrower and that are held by such Lender and are not required to be issued pursuant to this Agreement.

(e) Drafts of the Canadian Borrower to be accepted as B/As hereunder shall be signed as set forth in paragraph (d) above. Notwithstanding that any Person whose signature appears on any B/A may no longer be an authorized signatory for any of the Global Revolving Lenders or the Canadian Borrower at the date of issuance of such B/A, such signature shall nevertheless be valid and sufficient for all purposes as if such authority had remained in force at the time of such issuance and any such B/A so signed shall be binding on the Canadian Borrower.

(f) Upon acceptance of a B/A by a Global Revolving Lender, such Lender shall purchase, or arrange the purchase of, such B/A from the Canadian Borrower at the Discount Rate for such Lender applicable to such B/A accepted by it and provide to the Administrative Agent the Discount Proceeds for the account of the Canadian Borrower as provided in Section 2.06. The acceptance fee payable by the Canadian Borrower to a Global Revolving Lender under Section 2.13 in respect of each B/A accepted by such Lender shall be set off against the Discount Proceeds payable by such Lender under this paragraph. Notwithstanding the foregoing, in the case of any B/A Drawing resulting from the conversion or continuation of a B/A Drawing or Global Revolving Loan pursuant to Section 2.08, the net amount that would otherwise be payable to the Canadian Borrower by each Lender pursuant to this paragraph will be applied as provided in Section 2.08(f).

(g) Each Global Revolving Lender may at any time and from time to time hold, sell, rediscount or otherwise dispose of any or all B/A’s accepted and purchased by it; provided that no such sale or disposition shall cause the amount payable by a Borrower under Section 2.18 to exceed the amount that would have been payable thereunder in the absence of such sale or disposition.

(h) Each B/A accepted and purchased hereunder shall mature at the end of the Contract Period applicable thereto.

(i) The Canadian Borrower waives presentment for payment and any other defense to payment of any amounts due to a Global Revolving Lender in respect of a B/A accepted and purchased by it pursuant to this Agreement that might exist solely by reason of such B/A being held, at the maturity thereof, by such Lender in its own right and the Canadian Borrower agrees not to claim any days of grace if such Lender as holder sues the Canadian Borrower on the B/A for payment of the amounts payable by the Canadian Borrower thereunder. On the specified maturity date of a B/A, or such earlier date as may be required pursuant to the provisions of this Agreement, the Canadian Borrower shall pay the Global Revolving Lender that has accepted and purchased such B/A the full face amount of such B/A (or shall make provision for the conversion or continuation of such B/A in accordance with Section 2.08) in Canadian Dollars, and after such payment the Canadian Borrower shall have no further liability in respect of such B/A and such Lender shall be entitled to all benefits of, and be responsible for all payments due to third parties under, such B/A.

(j) At the option of the Canadian Borrower and any Global Revolving Lender, B/As under this Agreement to be accepted by that Lender may be issued in the form of depository bills for deposit with The Canadian Depository for Securities Limited pursuant to the Depository Bills and Notes Act (Canada). All depository bills so issued shall be governed by the provisions of this Section 2.07.

(k) If a Global Revolving Lender is not a chartered bank under the Bank Act (Canada) or if a Global Revolving Lender notifies the Administrative Agent in writing that it is otherwise unable to accept B/As, such Lender will, instead of accepting and purchasing B/As, make a Loan (a “B/A Equivalent Loan”) from its Canadian Lending Office to the Canadian Borrower in the amount and for the same term as the draft that such Lender would otherwise have been required to accept and purchase hereunder. Each such Lender may request that such B/A Equivalent Loan be evidenced by a non-interest bearing promissory note, in a form approved by the US Borrower and the Administrative Agent. Each such Lender will provide to the Administrative Agent the Discount Proceeds of such B/A Equivalent Loan for the account of the Canadian Borrower in the same manner as such Lender would have provided the Discount Proceeds in respect of the draft that such Lender would otherwise have been required to accept and purchase hereunder. Each such B/A Equivalent Loan will bear interest at the same rate that would result if such Lender had accepted (and been paid an acceptance fee for) and purchased (on a discounted basis) a B/A for the relevant Contract Period (it being the intention of the parties that each such B/A Equivalent Loan shall have the same economic consequences for the Global Revolving Lenders and the Canadian Borrower as the B/A that such B/A Equivalent Loan replaces). All such interest shall be paid in advance on the date such B/A Equivalent Loan is made, and will be deducted from the principal amount of such B/A Equivalent Loan in the same manner in which the Discount Proceeds of a B/A would be deducted from the face amount of the B/A. Subject to the repayment requirements of this Agreement, on the last day of the relevant Contract Period for such B/A Equivalent Loan, the Canadian Borrower shall be entitled to convert each such B/A Equivalent Loan into another type of Loan, or to roll over each such B/A Equivalent Loan into another B/A Equivalent Loan, all in accordance with the applicable provisions of this Agreement.

(l) If the Administrative Agent determines and promptly notifies the US Borrower that, by reason of circumstances affecting the money market, there is no market for

B/As, (i) the right of the Canadian Borrower to request an acceptance and purchase of B/As shall be suspended until the Administrative Agent determines that the circumstances causing such suspension no longer exist and so notifies the US Borrower, and (ii) any notice relating to an acceptance and purchase of B/As that is outstanding at such time shall be deemed to be a notice requesting a Canadian Prime Rate Borrowing (as if it were a notice given pursuant to Section 2.03).

SECTION 2.08. Interest Elections. (a) Each Revolving Borrowing and Term Borrowing initially shall be of the Type specified in the applicable Notice of Borrowing and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified (or deemed to be specified) in such Notice of Borrowing. Each B/A Drawing shall have a Contract Period as specified (or deemed to be specified) in the applicable request therefor. Thereafter, the applicable Borrower may elect to convert such Borrowing or a B/A Drawing to a different Type or to continue such Borrowing or B/A Drawing and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section, it being understood that no B/A Drawing may be converted or continued other than at the end of the Contract Period applicable thereto. The applicable Borrower may elect different options with respect to different portions of the affected Borrowing or B/A Drawing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing or accepting the B/As comprising such B/A Drawing, as the case may be, and the Loans or B/As comprising each such portion shall be considered a separate Borrowing or B/A Drawing. Notwithstanding any other provision of this Section, no Borrowing or B/A Drawing may be converted into or continued as a Borrowing or B/A Drawing with an Interest Period or Contract Period ending after the applicable Maturity Date. This Section shall not apply to Swingline Borrowings, which may not be converted or continued.

(b) To make an election pursuant to this Section, a Borrower (or the US Borrower on its behalf) shall notify the Administrative Agent of such election by telephone or telecopy (i) in the case of an election that would result in a Borrowing, by the time that a Notice of Borrowing would be required under Section 2.03 if such Borrower were requesting a Revolving Borrowing of the Type resulting from such election to be made on the effective date of such election and (ii) in the case of an election that would result in a B/A Drawing or the continuation of a B/A Drawing, by the time and date that a request would be required under Section 2.07 if such Borrower were requesting an acceptance and purchase of B/As to be made on the effective date of such election. Each such Interest Election Request shall be irrevocable and, if telephonic, shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the applicable Borrower (or the US Borrower on its behalf). Notwithstanding any other provision of this Section, no Borrower shall be permitted to (i) change the currency of any Borrowing, (ii) elect an Interest Period for Eurodollar Loans that does not comply with Section 2.02(d) or (iii) convert any Borrowing or B/A Drawing to a Borrowing or B/A Drawing not available under the Tranche of Commitments pursuant to which such Borrowing or B/A Drawing was made.

(c) Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02 and paragraph (f) of this Section:

(i)

the Borrowing or B/A Drawing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing or B/A Drawing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing or B/A Drawing);

(ii)	the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

(iii)

whether the resulting Borrowing is to be a Base Rate Borrowing, a Eurodollar Borrowing, a Canadian Base Rate Borrowing, a Canadian Prime Rate Borrowing or a B/A Drawing; and

(iv)

if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”, and in the case of an election of a B/A Drawing, the Contract Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Contract Period”.

If any such Interest Election Request requests a Eurodollar Borrowing or B/A Drawing but does not specify an Interest Period or Contract Period, then the applicable Borrower shall be deemed to have selected an Interest Period or Contract Period of one month’s or 30 days’ duration, as applicable.

(d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each applicable Lender of the details thereof and of such Lender’s portion of each resulting Borrowing or B/A Drawing.

(e) If the applicable Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period applicable thereto, such Eurodollar Borrowing shall, (i) in the case of a Borrowing by the US Borrower denominated in US Dollars, be converted to a Base Rate Borrowing, (ii) in the case of a Borrowing by the Canadian Borrower denominated in US Dollars, be converted to a Canadian Base Rate Borrowing and (iii) in the case of a Borrowing by the UK Borrower denominated in Sterling or US Dollars, be converted to a Eurodollar Borrowing with an Interest Period of one month’s duration. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the US Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing denominated in US Dollars may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing denominated in US Dollars shall be converted to a Base Rate Borrowing at the end of the Interest Period applicable thereto.

(f) Upon the conversion of any Canadian Borrowing (or portion thereof), or the continuation of any B/A Drawing (or portion thereof), to or as a B/A Drawing, the net amount that would otherwise be payable to the Canadian Borrower by each Global Revolving Lender pursuant to Section 2.07(f) in respect of such new B/A Drawing shall be applied against the principal of the Canadian Revolving Loan made by such Lender as part of such Canadian Borrowing (in the case of a conversion), or the reimbursement obligation owed to such Lender under Section 2.07(i) in respect of the B/As accepted by such Lender as part of such maturing B/A Drawing (in the case of a continuation), and the Canadian Borrower shall pay to such Lender an amount equal to the difference between the principal amount of such Canadian Revolving Loan or the aggregate face amount of such maturing B/As, as the case may be, and such net amount in respect of such new B/A Drawing.

(g) A Borrowing of any Tranche may not be converted to or continued as a Eurodollar Borrowing if after giving effect thereto (i) the Interest Period therefor would commence before and end after a date on which any principal of the Loans of such Tranche is scheduled to be repaid and (ii) the sum of the aggregate principal amount of outstanding Eurodollar Borrowings of such Tranche with Interest Periods ending on or prior to such scheduled repayment date plus the aggregate principal amount of outstanding Base Rate Borrowings or Canadian Base Rate Borrowings, as applicable, of such Tranche would be less than the aggregate principal amount of Loans of such Tranche required to be repaid on such scheduled repayment date.

SECTION 2.09. Termination and Reduction of Commitments. (a) Unless previously terminated, (i) the Term Loan Commitments shall terminate at 5:00 p.m., New York City time, on the Effective Date and (ii) both the US Revolving Loan Commitments and the Global Revolving Loan Commitments shall terminate on the Revolving Loan Maturity Date.

(b) The Borrowers may at any time terminate, without payment of any premium or penalty, or from time to time reduce, the Commitments of any Tranche; provided that (i) each reduction of the Commitments of any Tranche shall be in an amount that is an integral multiple of $500,000 and not less than $1,000,000, (ii) the Borrowers shall not terminate or reduce the US Revolving Loan Commitments if, after giving effect to any concurrent prepayment of the US Revolving Loans in accordance with Section 2.12, the total US Revolving Credit Exposures would exceed the US Total Revolving Loan Commitment and (iii) the Borrowers shall not terminate or reduce the Global Revolving Loan Commitments if, after giving effect to any concurrent prepayment of the Global Revolving Loans in accordance with Section 2.12, the total Global Revolving Credit Exposures would exceed the Global Total Revolving Loan Commitments.

(c) The applicable Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at least two Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by a Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the US Revolving Loan Commitments or the Global Revolving Loan Commitments delivered by

a Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by such Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Commitments of any Tranche shall be permanent. Each reduction of the Commitments of any Tranche shall be made ratably among the Lenders in accordance with their respective Commitments under such Tranche.

SECTION 2.10. Repayment of Loans and B/As; Evidence of Debt. (a) Each Borrower (or, in the case of clauses (ii) and (iii), the US Borrower) hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Revolving Loan of such Lender made to such Borrower on the Revolving Loan Maturity Date, and the face amount of each B/A of such Borrower, if any, accepted by such Lender as provided in Section 2.07, (ii) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Term Loan of such Lender as provided in Section 2.12 and (iii) to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of the Revolving Loan Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day of a calendar month and is at least two Business Days after such Swingline Loan is made; provided that on each date that a US Revolving Borrowing is made, the US Borrower shall repay all Swingline Loans that were outstanding on the date such Borrowing was requested.

(b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of each Borrower to such Lender resulting from each Loan made or B/A accepted by such Lender, including the amounts of principal and interest and amounts in respect of B/As payable and paid to such Lender from time to time hereunder.

(c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Tranche, Type and currency thereof and the Interest Period applicable thereto, and the amount of each B/A and the Contract Period applicable thereto, (ii) the amount of any principal, interest or other amount in respect of any B/A due and payable or to become due and payable from the Canadian Borrower to each Lender hereunder, (iii) the amount of any principal, interest or other amount in respect of any Loan due and payable or to become due and payable from the applicable Borrower to each Lender hereunder and (iv) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

(d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of any Borrower to repay the Loans or B/As in accordance with the terms of this Agreement.

(e) Any Lender may request that Loans of any Tranche made by it be evidenced by a promissory note. In such event, the applicable Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in the form of Exhibit

X-0, X-0X, X-0X or A-3, as applicable. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 10.04) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).

SECTION 2.11. Voluntary Prepayments. (a) The Borrowers shall have the right at any time and from time to time to prepay any Borrowing or amount owed in respect of outstanding B/As, in whole or in part, subject to prior notice in accordance with paragraph (c) of this Section and payment of any amounts required under Section 2.17.

(b) Prior to any optional or mandatory prepayment of Borrowings or amounts owing in respect of outstanding B/A Drawings, the applicable Borrower shall select the Borrowing or Borrowings and the B/A Drawing or B/A Drawings to be prepaid and shall specify such selection in the notice of such prepayment pursuant to paragraph (c) below.

(c) The US Borrower, Canadian Borrower or UK Borrower, as the case may be, shall give the Administrative Agent at the applicable Notice/Payment Office written notice (or telephonic notice promptly confirmed in writing) of its intent to prepay the Loans, whether such Loans are Term Loans, US Revolving Loans, Global US Revolving Loans, Canadian Revolving Loans, UK Revolving Loans or Swingline Loans, the amount of such prepayment, the Types of Loans to be repaid and (in the case of Eurodollar Loans) the specific Borrowing(s) pursuant to which such Eurodollar Loans were made, which notice (i) shall be given by the applicable Borrower, (A) prior to 12:00 noon. (Local Time) at least one Business Day prior to the date of such prepayment in the case of Loans maintained as Base Rate Loans (other than Swingline Loans), Canadian Base Rate Loans and Canadian Prime Rate Loans, (B) prior to 12:00 noon. (Local Time) at least one Business Day prior to the date of such prepayment in the case of Eurodollar Loans and (C) prior to 12:00 noon. (Local Time) on the date of such prepayment in the case of Swingline Loans and (ii) shall, except in the case of Swingline Loans, promptly be transmitted by the Administrative Agent to each of the applicable Lenders.

(d) except for a prepayment pursuant to Section 2.20, each prepayment of B/A Drawings or principal of Term Borrowings pursuant to this Section 2.11 shall be applied to the B/As included in such B/A Drawing or the Term Loans included in such Term Borrowing, as applicable, and to reduce the remaining Scheduled Repayments of the Term Loans, at the US Borrower’s option, in direct order of maturity or on a pro rata basis (in each case, based upon the then remaining principal amounts of such Scheduled Repayments after giving effect to all prior reductions thereto);

(e) Amounts to be applied pursuant to this Section or Article VIII to prepay or repay amounts to become due with respect to outstanding B/As shall be deposited in the Prepayment Account (as defined below). The Administrative Agent shall apply any cash deposited in the Prepayment Account allocable to amounts to become due in respect of B/As on the last day of their respective Contract Periods until all amounts due in respect of outstanding B/As have been prepaid or until all the allocable cash on deposit has been exhausted. For purposes of this Agreement, the term “Prepayment Account” shall mean an account established by the Canadian Borrower with the Administrative Agent and over which the Administrative

Agent shall have exclusive dominion and control, including the exclusive right of withdrawal for application in accordance with this paragraph (e). The Administrative Agent will, at the request of the Canadian Borrower, invest amounts on deposit in the Prepayment Account in short-term, cash equivalent investments selected by the Administrative Agent in consultation with the Canadian Borrower that mature on or prior to the last day of the applicable Contract Periods of the B/As to be prepaid; provided, however, that the Administrative Agent shall have no obligation to invest amounts on deposit in the Prepayment Account if an Event of Default shall have occurred and be continuing. The Canadian Borrower shall indemnify the Administrative Agent for any losses relating to the investments so that the amount available to prepay amounts due in respect of B/As on the last day of the applicable Contract Period is not less than the amount that would have been available had no investments been made pursuant hereto. Other than any interest earned on such investments (which shall be for the account of the Canadian Borrower, to the extent not necessary for the prepayment of B/As in accordance with this Section), the Prepayment Account shall not bear interest. Interest or profits, if any, on such investments shall be deposited in the Prepayment Account and reinvested and disbursed as specified above. If the maturity of the Loans and all amounts due hereunder has been accelerated pursuant to Article VIII, the Administrative Agent may, in its sole discretion, apply all amounts on deposit in the Prepayment Account to satisfy any of the Loan Document Obligations in respect of Canadian Revolving Loans and B/As (and the Canadian Borrower hereby grants to the Administrative Agent, as agent for the Secured Parties, a security interest in its Prepayment Account to secure such Loan Document Obligations).

SECTION 2.12. Mandatory Repayments. (a)(i) If on any date the US Revolving Credit Exposure of any Lender (after giving effect to any concurrent prepayment of US Revolving Loans) would exceed such Lender’s US Revolving Loan Commitment, or if the sum of the total US Revolving Credit Exposures (after giving effect to any concurrent prepayment of the US Revolving Loans) would exceed the US Total Revolving Loan Commitment, the US Borrower shall repay on such date the principal of Swingline Loans and, after all Swingline Loans have been repaid in full or if no Swingline Loans are outstanding, the US Borrower shall repay on such date the principal of US Revolving Loans, in either case, in the aggregate amount necessary to eliminate such excess. If, after giving effect to the prepayment of all outstanding Swingline Loans and all outstanding US Revolving Loans, the LC Exposure of any Lender exceeds such Lender’s US Revolving Loan Commitment as then in effect, the US Borrower shall pay to the Administrative Agent at the applicable Notice/Payment Office on such date the amount in cash and/or Cash Equivalents necessary to eliminate such excess (up to the aggregate amount of LC Exposure at such time) and the Administrative Agent shall hold such payment as security for the obligations of the US Borrower hereunder pursuant to a cash collateral agreement to be entered into in form and substance reasonably satisfactory to the Administrative Agent.

(ii)

If on any date the Global Revolving Credit Exposures of any Global Revolving Lender (after giving effect to all other concurrent prepayments on such date) would exceed such Lender’s Global Revolving Loan Commitment, or if the sum of the total Global Revolving Credit Exposures (after giving effect to all other concurrent prepayments on such date) would exceed the Global Total Revolving Loan Commitment, the US

Borrower shall repay on such date the principal of Global US Revolving Loans, if any, in the aggregate amount necessary to eliminate such excess.

(iii)

If on any date the total Canadian Revolving Credit Exposures (after giving effect to all other concurrent prepayments on such date) would exceed $30,000,000, the Canadian Borrower shall prepay on such date the principal of Canadian Revolving Loans incurred by it in an aggregate amount equal to such excess.

(iv)	If on any date the UK Revolving Credit Exposure (after giving effect to all other concurrent prepayments on such date) would exceed $10,000,000, the UK Borrower shall prepay on such date the principal of UK Revolving Loans incurred by it in an aggregate amount equal to such excess.

(b) In addition to any other mandatory repayments pursuant to this Section 2.12, on each date set forth below, the US Borrower shall be required to repay that principal amount of Term Loans, to the extent then outstanding, as is set forth opposite each such date (each such repayment, as the same may be reduced as provided in Sections 2.11(d) and 2.12(f), a “Scheduled Repayment”):

Scheduled Repayment Date	Amount
March 31, 2006	$875,000
June 30, 2006	$875,000
September 30, 2006	$875,000
December 31, 2006	$875,000
March 31, 2007	$875,000
June 30, 2007	$875,000
September 30, 2007	$875,000
December 31, 2007	$875,000
March 31, 2008	$875,000
June 30, 2008	$875,000
September 30, 2008	$875,000
December 31, 2008	$875,000
March 31, 2009	$875,000
June 30, 2009	$875,000
September 30, 2009	$875,000
December 31, 2009	$875,000
March 31, 2010	$875,000
June 30, 2010	$875,000
September 30, 2010	$875,000
December 31, 2010	$875,000
March 31, 2011	$875,000
June 30, 2011	$875,000
September 30, 2011	$875,000
December 31, 2011	$875,000
March 31, 2012	$875,000

Scheduled Repayment Date

Amount

June 30, 2012	$875,000
September 31, 2012	$875,000
Term Loan Maturity Date	$326,375,000

Notwithstanding the foregoing, if the aggregate principal amount of the Term Loans made on the Effective Date is less than $350,000,000, then the Scheduled Repayments to be made pursuant to this Section shall be reduced ratably by an aggregate amount equal to such difference.

(c) In addition to any other mandatory repayments pursuant to this Section 2.12, on the fifth Business Day following each date on or after the Effective Date on which Holdings or any of its Subsidiaries receives Net Sale Proceeds from any Asset Sale, an amount equal to 100% of the Net Sale Proceeds from such Asset Sale shall be applied as a mandatory repayment in accordance with the requirements of Section 2.12(f) and 2.12(g); provided that such Net Sale Proceeds shall not give rise to a mandatory repayment on such date to the extent that no Default or Event of Default then exists and such Net Sale Proceeds shall be used or contractually committed to be used to purchase, or repair damage to, assets used or to be used in the businesses permitted pursuant to Section 7.01 (including (but only to the extent permitted by Section 7.02), the purchase of the capital stock of a Person engaged in such businesses) within 365 days following the date of receipt of such Net Sale Proceeds from such Asset Sale; and provided further that (i) if all or any portion of such Net Sale Proceeds are not so used (or contractually committed to be used) within such 365-day period, such remaining portion shall be applied on the last day of such period (or such earlier date, if any, as Holdings or the relevant Subsidiary determines not to reinvest the Net Sale Proceeds from such Asset Sale as set forth above) as a mandatory repayment as provided above (without giving effect to the immediately preceding proviso) and (ii) if all or any portion of such Net Sale Proceeds are not so used within such 365-day period referred to in clause (i) of this proviso because such amount is contractually committed to be used and subsequent to such date such contract is terminated or expires without such portion being so used, such remaining portion shall be applied on the second Business Day following the date of such termination or expiration as a mandatory repayment as provided above (without giving effect to the immediately preceding proviso). Notwithstanding the foregoing provisions of this Section 2.12(c), so long as no Default or Event of Default shall have occurred and be continuing, no mandatory repayments shall be required pursuant to the immediately preceding proviso appearing in this Section 2.12(c) until the date on which the aggregate Net Sale Proceeds from all Asset Sales not reinvested within the time periods specified by said proviso equals or exceeds $2,000,000.

(d) In addition to any other mandatory repayments pursuant to this Section 2.12, on each date on or after the Effective Date on which Holdings or any of its Subsidiaries receives any cash proceeds from any incurrence of Indebtedness (other than Indebtedness permitted to be incurred pursuant to Section 7.04 as in effect (and waived in accordance with Section 10.11)) from time to time or issuance of Preferred Stock (other than Qualified Preferred Stock) by Holdings or any of its Subsidiaries, an amount equal to 100% of the Net Cash Proceeds of the respective incurrence of Indebtedness or issuance of Preferred Stock shall be applied as a mandatory repayment in accordance with the requirements of Section 2.12(f) and 2.12(g). Notwithstanding the foregoing provisions of this Section 2.12(d), so long as no Default or Event of Default shall have occurred and be continuing, no mandatory repayment

shall be required pursuant to this Section 2.12(d) until the date on which the sum of the Net Cash Proceeds required to be applied pursuant to this Section 2.12(d) as mandatory repayments in the absence of this sentence equals or exceeds $2,000,000.

(e) In addition to any other mandatory repayments pursuant to this Section 2.12, on each Excess Cash Flow Payment Date, an amount equal to (i) the Applicable Excess Cash Flow Percentage of the Excess Cash Flow for the relevant Excess Cash Flow Payment Period minus (ii) the aggregate amount of principal repayments of Loans made during the relevant Excess Cash Flow Payment Period to the extent (and only to the extent) that such repayments were made as a voluntary prepayment pursuant to Section 2.11 with internally generated funds (but in a case of a voluntary prepayment of Revolving Loans or Swingline Loans, only to the extent accompanied by a corresponding voluntary reduction to the Total Revolving Loan Commitment) shall be applied as a mandatory repayment in accordance with the requirements of Section 2.12(f).

(f) Each amount required to be applied pursuant to Sections 2.12(c), (d) and (e) in accordance with this Section 2.12(f) shall be applied to repay the outstanding principal amount of Term Loans on a pro rata basis. All repayments of outstanding Term Loans pursuant to Section 2.12(c), (d) and (e) shall be applied to reduce the then remaining Scheduled Repayments of the Term Loans on a pro rata basis (based upon the then remaining Scheduled Repayments after giving effect to all prior reductions thereto).

With respect to each repayment of Loans required by this Section 2.12, the US Borrower, the Canadian Borrower or the UK Borrower, as the case may be, may designate the Types of Loans of the respective Tranche that are to be repaid and, in the case of Eurodollar Loans, the specific Borrowing or Borrowings of the respective Tranche pursuant to which such Eurodollar Loans were made; provided that: (i) repayments of Eurodollar Loans pursuant to this Section 2.12 on a day other than the last day of an Interest Period applicable thereto shall be accompanied by payment by the US Borrower, the UK Borrower or the Canadian Borrower, as the case may be, of all breakage costs and other amounts owing to each Lender pursuant to Section 2.17; (ii) if any repayment of Eurodollar Loans made pursuant to a single Borrowing shall reduce the outstanding Eurodollar Loans made pursuant to such Borrowing to an amount less than the minimum amount for such Borrowing set forth in Section 2.02(c), such Borrowing shall be converted at the end of the then current Interest Period into a Borrowing of Base Rate Loans (if a Borrowing by the US Borrower) or Canadian Base Rate Loans (if a Borrowing by the Canadian Borrower) ; and (iii) each repayment of any Tranche of Loans made pursuant to a Borrowing shall be applied pro rata among such Tranche of Loans. In the absence of a designation by the US Borrower, the Canadian Borrower or the UK Borrower, as the case may be, as described in the preceding sentence, the Administrative Agent shall, subject to the above, make such designation in its sole discretion with a view, but no obligation, to minimize breakage costs owing under Section 2.17. Notwithstanding the foregoing provisions of this Section 2.12 (other than Section 2.12(a) or (b), which Sections shall not have the benefits of this sentence), if at any time the mandatory repayment of Loans pursuant to this Section 2.12 would result, after giving effect to the procedures set forth in this clause (i) above, in any Borrower incurring breakage costs under Section 2.17 as a result of Eurodollar Loans being repaid other than on the last day of an Interest Period applicable thereto (any such Eurodollar Loans, “Affected Loans”), the US Borrower, the Canadian Borrower or the UK Borrower, as the case may be, may elect, by

written notice to the Administrative Agent, to have the provisions of the following sentence be applicable so long as no Default or Event of Default then exists. At the time any Affected Loans are otherwise required to be prepaid, the US Borrower, the Canadian Borrower or the UK Borrower, as the case may be, may elect to deposit 100% (or such lesser percentage elected by the US Borrower, the Canadian Borrower or the UK Borrower, as the case may be, as not being repaid) of the principal amounts that otherwise would have been paid in respect of the Affected Loans with the Administrative Agent to be held as security for the obligations of the US Borrower, the Canadian Borrower or the UK Borrower, as the case may be, hereunder pursuant to a cash collateral agreement to be entered into in form and substance satisfactory to the Administrative Agent, with such cash collateral to be released from such cash collateral account (and applied to repay the principal amount of such Eurodollar Loans) upon each occurrence thereafter of the last day of an Interest Period applicable to such Eurodollar Loans (or such earlier date or dates as shall be requested by the US Borrower, the Canadian Borrower or the UK Borrower, as the case may be), with the amount to be so released and applied on the last day of each Interest Period to be the amount of such Eurodollar Loans to which such Interest Period applies (or, if less, the amount remaining in such cash collateral account); provided, however, that at any time while an Event of Default has occurred and is continuing, the Required Lenders may direct the Administrative Agent (in which case the Administrative Agent shall, and is hereby authorized by the Borrowers to, follow said directions) to apply any or all proceeds then on deposit in such collateral account to the payment of such Affected Loans.

(g) Notwithstanding anything to the contrary contained elsewhere in this Agreement, all then outstanding Loans of a given Tranche shall be repaid in full on the respective Maturity Date for such Tranche of Loans.

(h) Notwithstanding anything to the contrary contained in this Section 2.12 (and subject to Section 2.21), all payments owing with respect to each Tranche of outstanding Loans pursuant to this Section 2.12 shall be made in the respective currency or currencies in which the respective obligations are owing in accordance with the terms of this Agreement. For purposes of making calculations pursuant to this Section 2.12, the Administrative Agent shall be entitled to use the US Dollar Equivalent of any such amounts required to be converted into other currencies for purposes of making determinations pursuant to this Section 2.12.

SECTION 2.13. Fees. (a) The US Borrower agrees to pay to the Administrative Agent for the account of each Lender a Commitment Fee (the “Commitment Fee”), which shall accrue at the Applicable Rate on the average daily unused amount of the Term Loan Commitment, the US Revolving Loan Commitment and the Global Revolving Loan Commitment of such Lender during the period from and including the Effective Date to but excluding the date on which such Commitment terminates. Accrued Commitment Fees shall be payable in US Dollars in arrears (i) in the case of Commitment Fees in respect of the US Revolving Loan Commitments, on the third Business Day after the last day of March, June, September and December of each year and on the date on which the US Revolving Loan Commitments terminate, commencing on the first such date to occur after the date hereof, (ii) in the case of Commitment Fees in respect of the Global Revolving Loan Commitments, on the third Business Day after the last day of March, June, September and December of each year and on the date on which the Global Revolving Loan Commitments terminate, commencing on the first such date to occur after the date hereof

and (iii) in the case of Commitment Fees in respect of the Term Loan Commitments, on the Effective Date or any earlier date on which such Commitments terminate. All Commitment Fees shall be computed on the basis of a year of 360 days and, in each case, shall be payable for the actual number of days elapsed (including the first day but excluding the last day). For purposes of computing Commitment Fees with respect to US Revolving Loan Commitments, a US Revolving Loan Commitment of a Lender shall be deemed to be used to the extent of the outstanding US Revolving Loans and LC Exposure of such Lender (and the Swingline Exposure of such Lender shall be disregarded for such purpose).

(b) The US Borrower agrees to pay (i) to the Administrative Agent for the account of each US Revolving Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Rate as interest on Eurodollar US Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s US Revolving Loan Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to each Letter of Credit Issuer (for its own account) a fronting fee, which shall accrue at a rate of 0.20% per annum or as otherwise separately agreed upon between the US Borrower and such Letter of Credit Issuer on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) in respect of Letters of Credit issued by such Letter of Credit Issuer during the period from and including the Effective Date to but excluding the later of the date of termination of the US Revolving Loan Commitments and the date on which there ceases to be any LC Exposure in respect of Letters of Credit issued by such Letter of Credit Issuer, as well as such Letter of Credit Issuer’s standard fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the US Revolving Loan Commitments terminate and any such fees accruing after the date on which the US Revolving Loan Commitments terminate shall be payable on demand. Any other fees payable to the Letter of Credit Issuer pursuant to this paragraph shall be payable within 10 days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). For purposes of computing the average daily amount of the LC Exposure for any period under this Section 2.13(b), the average daily amount of the Canadian Dollar LC Exposure for such period shall be calculated by multiplying (x) the average daily balance of each Canadian Dollar Letter of Credit (expressed in Canadian Dollars) by (y) the Spot Exchange Rate for Canadian Dollars in effect on the last Business Day of such period or by such other reasonable method that the Administrative Agent deems appropriate.

(c) The Canadian Borrower agrees to pay to the Administrative Agent, for the account of each Global Revolving Lender, on each date on which B/As drawn by the Canadian Borrower are accepted hereunder, in Canadian Dollars, an acceptance fee computed by multiplying (i) the face amount of all B/As drawn on such date by (ii) the Applicable Rate for B/A Drawings on such date by (iii) a fraction, the numerator of which is the number of days in the Contract Period applicable to such B/A and the denominator of which is 365.

(d) Each Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the US Borrower and the Administrative Agent.

(e) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the Letter of Credit Issuer, in the case of fees payable to it) for distribution, in the case of Commitment Fees and participation fees, to the Lenders entitled thereto. Fees paid shall not be refundable under any circumstances.

SECTION 2.14. Interest. (a) The Loans comprising each Base Rate Borrowing (including each Swingline Loan) shall bear interest at the Base Rate plus the Applicable Rate.

(b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Eurodollar Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

(c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by any Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate (including margin) otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate (including margin) applicable to Base Rate Revolving Loans as provided in paragraph (a) of this Section.

(d) The loans comprising each Canadian Prime Rate Borrowing shall bear interest at the Canadian Prime Rate plus the Applicable Rate. The loans comprising each Canadian Base Rate Borrowing shall bear interest at the Canadian Base Rate plus the Applicable Rate.

(e) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date and on the applicable Maturity Date for such Loan and, in the case of Revolving Loans of any Tranche, upon termination of the Commitments of such Tranche; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of a Base Rate Revolving Loan, Canadian Prime Rate Loan or Canadian Base Rate Loan prior to the end of the Revolving Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

(f) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to (A) the Canadian Prime Rate, (B) the Base Rate at times when the Base Rate is based on the Prime Rate and (C) the Canadian Base Rate at times when the Canadian Base Rate is based on the rate described in clause (a) of the definition thereof shall be computed on the basis of a year of 365 days (or, except for purposes of clause (A) above, when the Canadian Prime Rate is based upon the rate described in clause (b) of the

definition thereof, 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The applicable Base Rate, Eurodollar Rate, Canadian Prime Rate or Canadian Base Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error. For the purposes of the Interest Act (Canada), whenever any interest or fee under this Agreement is calculated using a rate based on a year of 360 days or 365 days, as the case may be, the rate determined pursuant to such calculation, when expressed as an annual rate, is equivalent to (A) the applicable rate based on a year of 360 days or 365 days, as the case may be, (B) multiplied by the actual number of days in the calendar year in which the period for which such interest or fee is payable (or compounded) ends, and (C) divided by 360 and 365, as the case may be. The rates of interest under this Agreement are nominal rates, and not effective rates or yields. The principle of deemed reinvestment of interest does not apply to any interest calculation under this Agreement.

(g) If any provision of this Agreement would require the Canadian Borrower to make any payment of interest or other amount payable to any Global Revolving Lender in an amount or calculated at a rate that would be prohibited by law or would result in a receipt by that Lender of “interest” at a “criminal rate” (as such terms are construed under the Criminal Code (Canada)), then, notwithstanding such provision, such amount or rate shall be deemed to have been adjusted with retroactive effective to the maximum amount or rates of interest, as the case may be, as would not be so prohibited by law or so result in a receipt by that Lender of “interest” at a “criminal rate”, such adjustment to be effected, to the extent necessary (but only to the extent necessary), as follows:

(i)	first, by reducing the amount or rate of interest or the amount or rate of any acceptance fee required to be paid to the affected Lender under Section 2.13(c); and

(ii)	thereafter, by reducing any fees, commissions, premiums and other amounts required to be paid to the affected Lender that would constitute interest for purposes of Section 347 of the Criminal Code (Canada).

SECTION 2.15. Alternate Rate of Interest. If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

(a) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period; or

(b) the Administrative Agent is advised by the Required Lenders that the Eurodollar Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the applicable Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, in the case of Eurodollar Borrowings, until the Administrative Agent notifies the applicable Borrower and the

Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Notice of Borrowing requests a Eurodollar Borrowing, (A) in the case of a Eurodollar Borrowing made to the US Borrower, such Borrowing shall be made as a Base Rate Borrowing, (B) in the case of a Eurodollar Borrowing made to the Canadian Borrower, such Borrowing shall be made as a Canadian Base Rate Borrowing and (C) in the case of a Eurodollar Borrowing made to the UK Borrower, such Borrowing shall bear interest at such rate as the Lenders and the UK Borrower may agree adequately reflects the costs to the Lenders of making or maintaining their Loans (or, in the absence of such agreement, shall be repaid as of the last day of the current Interest Period applicable thereto).

SECTION 2.16. Increased Costs. (a) If any Change in Law shall:

(i)	impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Eurodollar Rate) or the Letter of Credit Issuer; or

(ii)	impose on any Lender or the Letter of Credit Issuer or the London or Canadian interbank markets any other condition affecting this Agreement or Eurodollar Loans or B/A Drawings made by such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan or obtaining funds for the purchase of B/As (or of maintaining its obligation to make any such Loan or to accept and purchase B/As) or to increase the cost to such Lender or the Letter of Credit Issuer of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or the Letter of Credit Issuer hereunder (whether of principal, interest or otherwise), then the applicable Borrower will pay to such Lender or the Letter of Credit Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the Letter of Credit Issuer, as the case may be, for such additional costs incurred or reduction suffered.

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

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

(d) Failure or delay on the part of any Lender or the Letter of Credit Issuer to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Letter of Credit Issuer’s right to demand such compensation; provided that the US Borrower shall not be required to compensate a Lender or the Letter of Credit Issuer pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or the Letter of Credit Issuer, as the case may be, notifies the US Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Letter of Credit Issuer’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.

SECTION 2.17. Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Revolving Loan or Term Loan or to issue B/As for acceptance and purchase on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked and is revoked in accordance herewith), or (d) the assignment of any Eurodollar Loan or the right to receive payment in respect of a B/A other than on the last day of the Interest Period or Contract Period, as the case may be, applicable thereto as a result of a request by the applicable Borrower pursuant to Section 2.20 or Section 10.11(b), then, in any such event, such Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Loan had such event not occurred, at the Eurodollar Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest that would accrue on such principal amount for such period at the interest rate that such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollar market. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the applicable Borrower and shall be conclusive absent manifest error. The applicable Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

SECTION 2.18. Taxes. (a) Any and all payments by or on account of any obligation of any Borrower hereunder or under any other Credit Document shall be made

free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if any Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Lenders or Letter of Credit Issuer (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the applicable Borrower shall make such deductions and (iii) the applicable Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.

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

(c) Each Borrower shall indemnify the Administrative Agent, the Lenders and the Letter of Credit Issuer, within 20 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Letter of Credit Issuer, as the case may be, on or with respect to any payment by or on account of any obligation of any Borrower hereunder or under any other Credit Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any penalties, interest and other reasonable expenses arising therefrom or with respect thereto whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; provided, however, that the Borrowers shall not be obligated to indemnify the Administrative Agent, the Lenders or the Letter of Credit Issuer (as the case may be) pursuant to this Section 2.18(c) in respect of penalties, interest and other reasonable expenses arising from any Indemnified Taxes or Other Taxes, if such penalties, interest and other reasonable expenses are attributable solely to the gross negligence or willful misconduct of the Administrative Agent, the Lenders or the Letter of Credit Issuer (as the case may be); provided further, that the Administrative Agent, the Lenders or the Letter of Credit Issuer (as the case may be) shall use commercially reasonable efforts promptly to notify the US Borrower upon receipt of any written demand or notice for payment of Indemnified Taxes or Other Taxes that are subject to indemnification under this Section 2.18(c) and shall reasonably cooperate with the Borrowers to minimize the amount of Indemnified Taxes and Other Taxes to the extent permitted by law. A certificate as to the amount of such payment or liability delivered to the applicable Borrower by a Lender or the Letter of Credit Issuer, or by the Administrative Agent on its own behalf or on behalf of a Lender or the Letter of Credit Issuer, shall be conclusive absent manifest error.

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

(e) On or before the date it becomes a party to this Agreement, each Lender that is lending to the US Borrower or receiving payments under this Agreement from the US Borrower and that is not a United States person as defined in Section 7701(a)(30) of the Code (a “Non-US Lender”) shall deliver to the US Borrower two copies of duly completed United States

Internal Revenue Service Form (i) W-8ECI, specifying that all payments to be received under this Agreement or any other Credit Document by such Non-US Lender will be effectively connected with the conduct of a trade or business in the US, (ii) W-8BEN, certifying eligibility for complete exemption from US Federal withholding tax with respect to payments to be made under this Agreement or under any other Credit Document under an applicable tax treaty or (iii) W-8BEN along with a certificate reasonably acceptable to the Administrative Agent (a “Non-Bank Certificate”), in the case of a Non-US Lender that cannot submit a United States Internal Revenue Service Form as provided in clause (i) or (ii) and that is qualified to receive interest under this Agreement free of US Federal withholding tax pursuant to Section 871(h) of the Code. Each Non-US Lender shall redeliver such forms promptly upon the obsolescence or invalidity of any form previously delivered by such Non-US Lender, except to the extent that such Non-US Lender is unable to redeliver such forms due to the adoption of, or change in, any law, rule, treaty or regulation or in the interpretation or application thereof by any Governmental Authority after the date on which the applicable loan is made by such Non-US Lender.

(f) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the applicable Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to such 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 applicable Borrower as will permit such payments to be made without withholding or at a reduced rate, provided that such Foreign Lender has received written notice from such Borrower advising it of the availability of such exemption or reduction and supplying all applicable documentation.

(g) If the Administrative Agent or any Lender determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by a Borrower or with respect to which a Borrower has paid additional amounts pursuant to this Section 2.18, it shall pay over such refund to such Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such Borrower under this Section 2.18 with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided, that the Borrowers, upon the request of the Administrative Agent or such Lender, agree to repay to the Administrative Agent or such Lender the amount paid over to any Borrower under this Section 2.18(g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority. This Section 2.18(g) shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its Taxes which it deems, in its sole discretion, to be confidential) to any Borrower or any other Person.

SECTION 2.19. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

(a) Each Borrower shall make each payment required to be made by it hereunder or under any other Credit Document (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.16, 2.17 or 2.18, or otherwise) prior

to the time expressly required hereunder or under such other Credit Document for such payment (or, if no such time is expressly required, prior to 12:00 noon, New York City time), on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its Notice/Payment Office, except payments to be made directly to the Letter of Credit Issuer or Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.16, 2.17, 2.18 and 9.07 shall be made directly to the Persons entitled thereto and payments pursuant to other Credit Documents shall be made to the Persons specified therein. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment under any Credit Document shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder of principal or interest in respect of any Loan or amounts owing in respect of any B/A Drawing (or of any breakage indemnity in respect of any Loan or B/A Drawing) shall be made in the currency of such Loan or B/A Drawing; all other payments hereunder and under each other Credit Document shall be made in US Dollars, except as otherwise expressly provided herein.

(b) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, amounts owing in respect of B/A Drawings, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties (based on the US Dollar Equivalent of such amounts or the US Dollar amount thereof, as applicable), and (ii) second, towards payment of principal, amounts owing in respect of B/A Drawings, and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal, face amounts of B/As and amounts of unreimbursed LC Disbursements then due to such parties (based on the US Dollar Equivalent of such amounts or the US Dollar amount thereof, as applicable).

(c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Revolving Loans, Term Loans, amounts owing in respect of any B/A Drawing or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Loans, Term Loans, amounts owing in respect of any B/A Drawing and participations in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Loans, Term Loans, amounts owing in respect of any B/A Drawing and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Revolving Loans, Term Loans, amounts owing in respect of any B/A Drawing and participations in LC Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any

portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by any Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to US Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Borrower in the amount of such participation.

(d) Unless the Administrative Agent shall have received notice from a Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Letter of Credit Issuer hereunder that the applicable Borrower will not make such payment, the Administrative Agent may assume that such Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Letter of Credit Issuer, as the case may be, the amount due. In such event, if the applicable Borrower has not in fact made such payment, then each of the Lenders or the Letter of Credit Issuer, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Letter of Credit Issuer with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

(e) If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.19(d) or 9.07, then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

SECTION 2.20. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests compensation under Section 2.16, or if any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.18, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the reasonable judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.16 or 2.18, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. Each Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

(b) If any Lender requests compensation under Section 2.16, or if any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.18, or if any Lender defaults in its obligation to fund Loans hereunder, then the applicable Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 10.04), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the applicable Borrower shall have received the prior written consent of the Administrative Agent (and, if a US Revolving Loan Commitment is being assigned, the Letter of Credit Issuer and Swingline Lender), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the applicable Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.16 or payments required to be made pursuant to Section 2.18, such assignment will result in a material reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the applicable Borrower to require such assignment and delegation cease to apply.

SECTION 2.21. Collection Allocation Mechanism. (a) On the CAM Exchange Date, (i) the Commitments shall automatically and without further act be terminated as provided in Article VIII, (ii) each US Revolving Lender shall immediately be deemed to have acquired (and shall promptly make payment therefor to the Administrative Agent in accordance with Section 2.04(c)) participations in the Swingline Loans in an amount equal to such US Revolving Lender’s Swingline Exposure on such date and (iii) the Lenders shall automatically and without further act (and without regard to the provisions of Section 10.04) be deemed to have exchanged interests in the Loans (other than the Swingline Loans) and B/A Drawings and, in the case of the US Revolving Lenders, participations in Swingline Loans and Letters of Credit such that in lieu of the interest of each Lender in each Loan, B/A Drawing and Letter of Credit in which it shall participate as of such date (including such Lender’s interest in the Loan Document Obligations of each Credit Party in respect of each such Loan, B/A Drawing and Letter of Credit), such Lender shall hold an interest in every one of the Loans (other than the Swingline Loans) and B/A Drawings and a participation in every one of the Swingline Loans and Letters of Credit (including the Loan Document Obligations of each Credit Party in respect of each such Loan and B/A Drawing and each LC Reserve Account established pursuant to Section 2.21(c) below), whether or not such Lender shall previously have participated therein, equal to such Lender’s CAM Percentage thereof. It is understood and agreed that Lenders holding interests in B/As on the CAM Exchange Date shall discharge the obligations to fund such B/As at maturity in exchange for the interests acquired by such Lenders pursuant to the CAM Exchange. Each Lender and each Credit Party hereby consents and agrees to the CAM Exchange, and each Lender agrees that the CAM Exchange shall be binding upon its successors and assigns and any person that acquires a

participation in its interests in any Loan or B/A Drawing. Each Credit Party agrees from time to time to execute and deliver to the Administrative Agent all such Notes and other instruments and documents as the Administrative Agent shall reasonably request to evidence and confirm the respective interests of the Lenders after giving effect to the CAM Exchange, and each Lender agrees to surrender any Notes originally received by it in connection with its Loans hereunder to the Administrative Agent against delivery of new Notes evidencing its interests in the Loans; provided, however, that the failure of any Credit Party to execute or deliver or of any Lender to accept any such Note, instrument or document shall not affect the validity or effectiveness of the CAM Exchange.

(b) As a result of the CAM Exchange, upon and after the CAM Exchange Date, each payment received by the Administrative Agent or the Collateral Agent pursuant to any Credit Document in respect of the Loan Document Obligations, and each distribution made by the Collateral Agent pursuant to any Security Document in respect of the Loan Document Obligations, shall be distributed to the Lenders pro rata in accordance with their respective CAM Percentages. Any direct payment received by a Lender upon or after the CAM Exchange Date, including by way of setoff, in respect of a Loan Document Obligation shall be paid over to the Administrative Agent for distribution to the Lenders in accordance herewith.

(c) In the event that on the CAM Exchange Date any Letter of Credit shall be outstanding and undrawn in whole or in part, or any LC Disbursement shall not have been reimbursed by the US Borrower or with the proceeds of a US Revolving Borrowing or Swingline Loan, each US Revolving Lender shall promptly pay over to the Administrative Agent, in immediately available funds, an amount in US Dollars equal to such US Revolving Lender’s US Revolving Percentage of each such undrawn face amount or (to the extent it has not already done so) each such unreimbursed drawing, as the case may be, together with interest thereon from the CAM Exchange Date to the date on which such amount shall be paid to the Administrative Agent at the rate that would be applicable at the time to a Base Rate Revolving Loan in a principal amount equal to such amount. The Administrative Agent shall establish a separate account or accounts for each Lender (each, an “LC Reserve Account”) for the amounts received with respect to each such Letter of Credit pursuant to the preceding sentence. The Administrative Agent shall deposit in each Lender’s LC Reserve Account such Lender’s CAM Percentage of the amounts received from the US Revolving Lenders as provided above. The Administrative Agent shall have sole dominion and control over each LC Reserve Account, and the amounts deposited in each LC Reserve Account shall be held in such LC Reserve Account until withdrawn as provided in paragraph (d) or (e) below. The Administrative Agent shall maintain records enabling it to determine the amounts paid over to it and deposited in the LC Reserve Accounts in respect of each Letter of Credit and the amounts on deposit in respect of each Letter of Credit attributable to each Lender’s CAM Percentage. The amounts held in each Lender’s LC Reserve Account shall be held as a reserve against the LC Exposures, shall be the property of such Lender, shall not constitute Loans to or give rise to any claim of or against any Credit Party and shall not give rise to any obligation on the part of any Borrower to pay interest to such Lender, it being agreed that the reimbursement obligations in respect of Letters of Credit shall arise only at such times as drawings are made thereunder, as provided in Section 2.05.

(d) In the event that after the CAM Exchange Date any drawing shall be made in respect of a Letter of Credit, the Administrative Agent shall, at the request of the Letter of

Credit Issuer, withdraw from the LC Reserve Account of each Lender any amounts, up to the amount of such Lender’s CAM Percentage of such drawing, deposited in respect of such Letter of Credit and remaining on deposit and deliver such amounts to the Letter of Credit Issuer in satisfaction of the reimbursement obligations of the US Revolving Lenders under Section 2.05(e). In the event that any US Revolving Lender shall default on its obligation to pay over any amount to the Administrative Agent in respect of any Letter of Credit as provided in this Section 2.21, the Letter of Credit Issuer shall, in the event of a drawing thereunder, have a claim against such US Revolving Lender to the same extent as if such Lender had defaulted on its obligations under Section 2.05(c), but shall have no claim against any other Lender in respect of such defaulted amount, notwithstanding the exchange of interests in the US Borrower’s reimbursement obligations pursuant to Section 2.21(a). Each other Lender shall have a claim against such defaulting US Revolving Lender for any damages sustained by it as a result of such default, including, in the event that such Letter of Credit shall expire undrawn, its CAM Percentage of the defaulted amount.

(e) In the event that after the CAM Exchange Date any Letter of Credit shall expire undrawn, the Administrative Agent shall withdraw from the LC Reserve Account of each Lender the amount remaining on deposit therein in respect of such Letter of Credit and distribute such amount to such Lender.

(f) With the prior written approval of the Administrative Agent (not to be unreasonably withheld), any Lender may withdraw the amount held in its LC Reserve Account in respect of the undrawn amount of any Letter of Credit. Any Lender making such a withdrawal shall be unconditionally obligated, in the event there shall subsequently be a drawing under such Letter of Credit, to pay over to the Administrative Agent, for the account of the applicable Issuing Bank, on demand, its CAM Percentage of such drawing.

(g) In the event the CAM Exchange Date shall occur, (i) Loan Document Obligations of the Credit Parties (other than in respect of B/As) denominated in any currency other than US Dollars shall, automatically and with no further act required, be converted to obligations of the same Credit Parties denominated in US Dollars, effective immediately prior to the Lenders being deemed to have exchanged interests pursuant to Section 2.21(a)(iii) and based upon the Spot Exchange Rates in effect with respect to the relevant currencies on the CAM Exchange Date, and (ii) immediately upon the date of expiration of the Contract Period in respect thereof, the interests in each B/A received in the deemed exchange of interests pursuant to Section 2.21(a)(iii) shall, automatically and with no further action required, be converted into the US Dollar Equivalent, determined using the Spot Exchange Rate calculated as of such date, of such amount. On and after any such conversion, all amounts accruing and owed to any Lender in respect of its applicable Loan Document Obligations shall accrue and be payable in US Dollars at the rates otherwise applicable hereunder (and, in the case of interest on Loans and B/A Drawings, at the default rate applicable to Base Rate Loans hereunder).

SECTION 2.22. Redenomination of Sterling. (a) Each obligation of any party to this Agreement to make a payment denominated in Sterling if the United Kingdom adopts the Euro as its lawful currency after the date hereof shall be redenominated into Euro at the time of such adoption (in accordance with the EMU Legislation). If the basis of accrual of interest expressed in this Agreement in respect of Sterling shall be inconsistent

with any convention or practice in the London interbank market for the basis of accrual of interest in respect of the Euro, such expressed basis shall be replaced by such convention or practice with effect from the date on which the United Kingdom adopts the Euro as its lawful currency; provided that if any Borrowing in Sterling is outstanding immediately prior to such date, such replacement shall take effect, with respect to such Borrowing, at the end of the then current Interest Period.

(b) Without prejudice and in addition to any method of conversion or rounding prescribed by any EMU Legislation and (i) without limiting the liability of any Borrower for any amount due under this Agreement and (ii) without increasing any Commitment of any Lender, all references in this Agreement to minimum amounts (or integral multiples thereof) denominated in Sterling shall, if the United Kingdom adopts the Euro as its lawful currency after the date hereof, immediately upon such adoption, be replaced by references to such minimum amounts (or integral multiples thereof) as shall be specified herein with respect to Borrowings denominated in Euro.

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

SECTION 2.23. Incremental Term Loans. (a) The US Borrower may at any time, by notice to the Administrative Agent (which shall promptly deliver a copy to each of the Lenders), request one or more additional tranches of term loans (each, an “Incremental Term Loan”); provided, that (i) at the time that any such Incremental Term Loan is made (and after giving effect thereto), (A) no Default or Event of Default shall have occurred and be continuing, (B) the Total Leverage Ratio on a Pro Forma Basis (including, to the extent any Permitted Acquisition or Subsidiary Redesignation has occurred during the applicable Test Period, giving effect to such Permitted Acquisition and/or Subsidiary Redesignation on a Pro Forma Basis) after giving effect to the incurrence of the Incremental Term Loans and the application of the proceeds therefrom, as of the last day of the most recently ended four fiscal quarters of the US Borrower, shall not exceed 4.25 to 1.00, (C) the US Borrower shall be in compliance, on a Pro Forma Basis (including, to the extent any Permitted Acquisition or Subsidiary Redesignation has occurred during the applicable Test Period, giving effect to such Permitted Acquisition and/or Subsidiary Redesignation on a Pro Forma Basis) after giving effect to the incurrence of such Incremental Term Loans and the application of the proceeds therefrom, with Section 7.09 and Section 7.10 of this Agreement computed as if such Indebtedness had been outstanding during the most recently ended period of four consecutive fiscal quarters of the US Borrower, (D) the incurrence of any such Incremental Term Loans has been duly authorized by the US Borrower and (E) the US Borrower has delivered to the Administrative Agent a certificate to the effect set forth in clauses (A), (B), (C) and (D) above, together with all relevant calculations related thereto; and (ii) the US Borrower shall promptly after the US Borrower receives the proceeds from the incurrence of any Incremental Term Loans, pay Dividends to Holdings (and, at the option of the US Borrower, related transaction costs) with such proceeds and Holdings shall promptly thereafter utilize the proceeds of such Dividends to redeem, repurchase or repay Holdings Notes or Permitted Holdings Refinancing Indebtedness in accordance with

Section 7.12(a)(iv). The Incremental Term Loans (a) shall be in an aggregate principal amount not in excess of $325,000,000 (less the aggregate principal amount of Additional Senior Subordinated Notes issued pursuant to Section 7.04(o)), (b) shall rank pari passu in right of payment, security and guarantees with the Revolving Loans and the Term Loans, (c) shall not mature earlier than the Term Loan Maturity Date (but may, subject to clause (d) below, have amortization prior to such date), (d) shall not have a weighted average life that is shorter than that of the then-remaining Term Loans, (e) shall accrue interest at a rate determined at the time the commitments to provide such Incremental Term Loans are obtained (it being understood that the Incremental Term Loans may be priced differently from the Term Loans) and (f) shall, except as set forth above, have terms identical to and be treated the same as the Term Loans for all purposes of the Credit Documents (including with respect to mandatory and voluntary prepayments), provided that if the Applicable Rate (which, for such purposes only, shall be deemed to include all upfront or similar fees or original issue discount payable to all Lenders providing such Incremental Term Loan) relating to any Incremental Term Loan exceeds the Applicable Rate (which, for such purposes only, shall be deemed not to include any upfront or similar fees or original issue discount payable to the Lenders of Term Loans) relating to the Term Loans immediately prior to the effectiveness of the applicable Incremental Term Loan Amendment by more than 0.50%, then the Applicable Rate relating to the Term Loans shall be adjusted to be equal to the Applicable Rate (which, for such purposes only, shall be deemed to include all upfront or similar fees or original issue discount payable to all Lenders providing such Incremental Term Loans) relating to such Incremental Term Loans minus 0.50%. In lieu of requesting an additional tranche of term loans, the US Borrower may, in such notice, request that the Incremental Term Loans constitute additional Term Loans which shall have terms identical to the existing Term Loans. Such notice shall set forth (1) the requested amount of Incremental Term Loans, together with all relevant calculations confirming compliance with sub-clause (i) of the fourth preceding sentence, and (2) the proposed terms of the Incremental Term Loans (or, if applicable, that the US Borrower wishes that the Incremental Term Loans constitute additional Term Loans which shall have terms identical to the existing Term Loans).

(b) The US Borrower may arrange for one or more banks, financial institutions or other Persons (including existing Lenders) reasonably acceptable to the Administrative Agent (any such bank, financial institution or other Person being called an “Additional Lender”) to extend commitments to provide Incremental Term Loans in an aggregate amount equal to the unsubscribed amount. All commitments in respect of Incremental Term Loans (the “Incremental Term Loan Commitments”) shall become Commitments under this Agreement, and all Additional Lenders that are not already Lenders shall become Lenders under this Agreement, pursuant to an amendment (the “Incremental Term Loan Amendment”) to this Agreement and, as appropriate, the other Credit Documents, executed by Holdings, the Borrowers and, as appropriate, each other Credit Party, each Additional Lender and the Administrative Agent. The Incremental Term Loan Amendment may, without the consent of any other Lender, effect such amendments to this Agreement and the other Credit Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent, to effect the provisions of this Section. The effectiveness of the Incremental Term Loan Amendment shall be subject to the satisfaction on the date thereof of each of the conditions set forth in

Section 4.01 (it being understood that all references to “the time of each such Credit Event” and “the date of such Credit Event” in such Section 4.01 shall be deemed to refer to the effective date of such Incremental Term Loan Amendment) and such other conditions as the parties thereto shall agree. No Lender shall be obligated to provide any Incremental Term Loans, unless it so agrees.

SECTION 2.24. Additional Reserve Costs. (a) If and so long as any Lender is required to make special deposits with the Bank of England, to maintain reserve asset ratios or to pay fees, in each case in respect of such Lender’s Loans, such Lender may require the relevant Borrower to pay, contemporaneously with each payment of interest on each of such Loans, additional interest on such Loans at a rate per annum equal to the Mandatory Costs Rate calculated in accordance with the formula and in the manner set forth in Exhibit J hereto, provided that no Lender may request the payment of any amount under this paragraph to the extent resulting from a requirement imposed (other than as provided in Section 2.16) on such Lender by any Governmental Authority (and not on Lenders or any class of Lenders generally) in respect of a concern expressed by such Governmental Authority with such Lender specifically, including with respect to its financial health.

(b) If and so long as any Lender is required to comply with reserve assets, liquidity, cash margin or other requirements of any monetary or other authority (including any such requirement imposed by the European Central Bank or the European System of Central Banks, but excluding requirements reflected in the Mandatory Costs Rate) in respect of any of such Lender’s Loans, such Lender may require the relevant Borrower to pay, contemporaneously with each payment of interest on each of such Lender’s Loans, subject to such requirements, additional interest on such Loans at a rate per annum specified by such Lender to be the cost to such Lender of complying with such requirements in relation to such Loans, provided that no Lender may request the payment of any amount under this paragraph to the extent resulting from a requirement imposed (other than as provided in Section 2.16) on such Lender by any Governmental Authority (and not on Lenders or any class of Lenders generally) in respect of a concern expressed by such Governmental Authority with such Lender specifically, including with respect to its financial health.

(c) Any additional interest owed pursuant to paragraph (a) or (b) above shall be determined by the relevant Lender, acting in good faith, which determination shall be conclusive absent manifest error, and notified to the relevant Borrower (with a copy to the Administrative Agent) at least five Business Days before each date on which interest is payable for the relevant Loans, and such additional interest so notified to the relevant Borrower by such Lender shall be payable to such Lender on each date on which interest is payable for such Loans.

SECTION 2.25. Change in Law. Notwithstanding any other provision of this Agreement, if, after the date hereof, (i) any Change in Law shall make it unlawful for any Letter of Credit Issuer to issue Letters of Credit denominated in Canadian Dollars, or (ii) there shall have occurred any change in national or international financial, political or economic conditions (including the imposition of or any change in exchange controls) or currency exchange rates that would make it impracticable for any Letter of Credit Issuer to issue Letters of Credit denominated Canadian Dollars, then by prompt written notice thereof to the US Borrower and to the Administrative Agent (which notice shall be withdrawn

whenever such circumstances no longer exist), such Letter of Credit Issuer may declare that Letters of Credit will not thereafter be issued by it in Canadian Dollars, whereupon Canadian Dollars shall be deemed (for the duration of such declaration) not to constitute a permitted currency for purposes of the issuance of Letters of Credit by such Letter of Credit Issuer.

ARTICLE III

Conditions Precedent to Credit

Events on the Effective Date. The amendment and restatement of the Existing Credit Agreement pursuant to this Agreement is subject, and the obligation of each Lender to make each Loan and accept and purchase each B/A hereunder, and the obligation of each Letter of Credit Issuer to issue each Letter of Credit hereunder, in each case on the Effective Date, is subject at the time of the making of such Loan or the issuance of such Letter of Credit, as the case may be, to the satisfaction of the following conditions:

SECTION 3.01. Execution of Agreement. The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

SECTION 3.02. Officer’s Certificate. On the Effective Date, the Administrative Agent shall have received a certificate from Holdings and each Borrower dated such date signed by an appropriate officer of such Credit Party stating that all of the applicable conditions set forth in Sections 3.05 through 3.08, inclusive, and 4.01 (other than such conditions to the extent that same are subject to the satisfaction of the Administrative Agent and/or the Required Lenders), have been satisfied on such date.

SECTION 3.03. Opinions of Counsel. On the Effective Date, the Administrative Agent shall have received opinions, addressed to the Administrative Agent, the Collateral Agent and each of the Lenders and dated the Effective Date, from (a) Xxxxx Xxxx LLP, special counsel to the Credit Parties, which opinion shall cover the matters contained in Exhibit B-1 and such other matters incident to the transactions contemplated herein as the Administrative Agent may reasonably request, (b) Fasken Xxxxxxxxx DuMoulin LLP, special Canada counsel to the Credit Parties, which opinion shall cover the matters contained in Exhibit B-2 and such other matters incident to the transactions contemplated herein as the Administrative Agent may reasonably request, (c) English counsel, which opinion shall cover the matters contained in Exhibit B-3 and such other matters incident to the transactions contemplated herein as the Administrative Agent may reasonably request, and (d) local counsel to the Credit Parties and/or the Administrative Agent in (i) Illinois, Kansas, Utah and Wisconsin in the United States and (ii) Saskatchewan, Nova Scotia and Ontario in Canada, in each case reasonably satisfactory to the Administrative Agent, which opinions in the case of this clause (d) (A) shall cover the perfection of the security interests granted pursuant to the Security Documents and such other matters incident to the transactions contemplated herein as the Administrative Agent

may reasonably request and (B) shall be in form and substance reasonably satisfactory to the Administrative Agent.

SECTION 3.04. Company Documents; Proceedings. (a) On the Effective Date, the Administrative Agent shall have received from each Credit Party a certificate, dated the Effective Date, signed by the chairman of the board, the chief executive officer, the president or any vice president of such Credit Party (or, in the case of any Foreign Credit Party, an authorized signatory thereof as permitted under applicable law and the relevant charter documents of such Foreign Credit Party), and attested to by the secretary or any assistant secretary of such Credit Party (or, in the case of any Foreign Credit Party, another authorized signatory thereof as permitted under applicable law and the relevant charter documents of such Foreign Credit Party), in the form of Exhibit C with appropriate insertions, together with copies of the certificate or articles of incorporation, certificate of formation, operating agreements and by-laws (or equivalent organizational documents) of such Credit Party and the resolutions of such Credit Party referred to in such certificate and each of the foregoing shall be in form and substance reasonably satisfactory to the Administrative Agent.

(b) On the Effective Date, all Company and legal proceedings and all instruments and agreements in connection with the transactions contemplated by this Agreement and the other Documents shall be reasonably satisfactory in form and substance to the Administrative Agent, and the Administrative Agent shall have received all information and copies of all certificates, documents and papers, including good standing certificates, bring- down certificates and any other records of Company proceedings and governmental approvals, if any, that the Administrative Agent reasonably may have requested in connection therewith, such documents and papers, where appropriate, to be certified by proper Company or governmental authorities.

SECTION 3.05. Adverse Change, etc. On the Effective Date, nothing shall have occurred that has had, or is reasonably likely to have, a material adverse effect on the Transaction or a Material Adverse Effect.

SECTION 3.06. Litigation. On the Effective Date, there shall be no actions, suits, proceedings or investigations pending or threatened (a) with respect to this Agreement or any other Document or the Transaction, (b) with respect to any Retained Existing Indebtedness or the Existing Credit Agreement Indebtedness or (c) that is reasonably likely to have (i) a Material Adverse Effect or (ii) a material adverse effect on the Transaction, the rights or remedies of the Lenders or the Administrative Agent hereunder or under any other Credit Document or on the ability of any Credit Party to perform its respective obligations to the Lenders or the Administrative Agent hereunder or under any other Credit Document.

SECTION 3.07. Approvals. On the Effective Date, (a) all necessary and material governmental (domestic and foreign), regulatory and third party approvals in connection with any Existing Indebtedness or Retained Existing Indebtedness, the Transaction or the transactions contemplated by the Documents and otherwise referred to herein or therein shall have been obtained and remain in full force and effect and, to the extent reasonably requested by the Administrative Agent, evidence thereof shall have been

provided to the Administrative Agent and (b) all applicable appeal periods and waiting periods shall have expired without any action being taken by any competent authority that restrains (or that could have a reasonable likelihood of restraining), prevents or imposes materially adverse conditions upon the consummation of the Transaction, the making of the Loans and the transactions contemplated by the Documents or otherwise referred to herein or therein. On the Effective Date, there shall not exist any judgment, order, injunction or other restraint issued or filed or a hearing seeking injunctive relief or other restraint pending or notified prohibiting or imposing materially adverse conditions upon, or materially delaying, or making economically unfeasible, the consummation of the Transaction or the making of the Loans.

SECTION 3.08. Consummation of the Debt Tender Offer, etc. (a) On the Effective Date, pursuant to or in connection with the Debt Tender Offer and in accordance with the Debt Tender Offer Documents, the US Borrower will (a) purchase all the Existing Senior Subordinated Notes validly tendered and not withdrawn by the holders thereof (which shall constitute at least a majority of the aggregate principal amount of the Existing Senior Subordinated Notes), (b) amend the Senior Subordinated Notes Indenture prior to giving effect to the consummation of the Debt Tender Offer to eliminate or modify (in a manner reasonably satisfactory to the Administrative Agent) all the material covenants (including the so-called restrictive covenants) contained therein and (c) pay the Debt Tender Premium in connection with the consummation of the Debt Tender Offer.

(b) On the Effective Date, the Administrative Agent shall have received true and correct copies of all the Debt Tender Offer Documents, certified as such by an appropriate officer of Holdings, with, in each case, any changes thereto or waivers to the terms thereof to be reasonably satisfactory to the Administrative Agent. Each component of the Transaction shall have been consummated in accordance with the terms and conditions of the applicable Documents and all applicable laws.

SECTION 3.09. US Collateral and Guaranty Agreement; Foreign Pledge Agreements. On the Effective Date, (a) Holdings, the US Borrower and each Domestic Subsidiary of the US Borrower shall have duly authorized, executed and delivered the US Collateral and Guaranty Agreement in the form of Exhibit D, with such changes thereto, or additional pledge agreements (or amendments thereto) entered into in connection therewith, as the Collateral Agent may reasonably request in respect of any Pledged Collateral of any Foreign Subsidiary to be pledged by any US Credit Party, or (at the option of the Administrative Agent) supplements to the US Collateral and Guaranty Agreement and any such additional pledge agreements executed and delivered in connection with the Existing Credit Agreement and in form and substance reasonably satisfactory to the Administrative Agent (as amended, restated, modified and/or supplemented from time to time in accordance with the terms thereof and hereof (as well as any guaranty, pledge and/or security agreements delivered by any Domestic Subsidiary of the US Borrower pursuant to Section 6.11(a) or (b)), the “US Collateral and Guaranty Agreement”), (b) each Foreign Subsidiary of the US Borrower organized under the laws of Canada (or any province or territory thereof) or of England and Wales in the United Kingdom (other than such Foreign Subsidiaries that do not own any equity of any other Person) shall have duly authorized, executed and delivered one or more other pledge agreements in form and substance

satisfactory to the Collateral Agent in connection with the Pledged Collateral to be pledged by any such Foreign Subsidiary, or (at the option of the Administrative Agent) a supplement to the Foreign Pledge Agreement executed and delivered in connection with the Existing Credit Agreement and in form and substance reasonably satisfactory to the Administrative Agent (such pledge agreements referred to in this clause (b), as the same may be amended, restated, modified and/or supplemented from time to time in accordance with the terms thereof and hereof (as well as any pledge agreements delivered by any Foreign Subsidiary pursuant to Section 6.11(a)), the “Foreign Pledge Agreements” and each, a “Foreign Pledge Agreement”), (c) each Credit Party to the US Collateral and Guaranty Agreement or a Foreign Pledge Agreement shall have delivered to the Collateral Agent, as pledgee thereunder, all of the certificated Pledged Collateral, if any, referred to therein and then owned by each such Credit Party, (i) endorsed in blank in the case of promissory notes constituting such Pledged Collateral and (ii) together with (A) executed and undated stock powers or stock transfer forms, as applicable, in the case of capital stock constituting such Pledged Collateral and (B) proper financing statements (Form UCC-1) or appropriate local or foreign equivalent fully executed for filing under the UCC or other appropriate filing offices of each jurisdiction as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable to perfect the security interests purported to be created by the US Collateral and Guaranty Agreement and Foreign Pledge Agreements, and (d) each Credit Party shall have taken all such further actions as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable, to perfect the security interest purported to be created by the US Collateral and Guaranty Agreement and Foreign Pledge Agreements, and the US Collateral and Guaranty Agreement and each Foreign Pledge Agreement shall be in full force and effect.

SECTION 3.10. US Collateral and Guaranty Agreement; Foreign Security Agreements. On the Effective Date, each Foreign Subsidiary of the US Borrower incorporated under the laws of Canada (or any province or territory thereof) or of England and Wales in the United Kingdom shall have duly authorized, executed and delivered one or more other security agreements in form and substance satisfactory to the Collateral Agent in connection with the Security Agreement Collateral of each such Foreign Subsidiary, or (at the option of the Administrative Agent) a supplement to the Foreign Security Agreement executed and delivered in connection with the Existing Credit Agreement and in form and substance reasonably satisfactory to the Administrative Agent (such security agreements (as well as any security agreements delivered by any Foreign Subsidiary pursuant to Section 6.11(b)), the “Foreign Security Agreements” and each, a “Foreign Security Agreement”). The US Collateral and Guaranty Agreement and the Foreign Security Agreements executed and delivered on the Effective Date shall cover all of each Credit Party’s present and future Security Agreement Collateral and shall be delivered together with:

(a) executed copies of financing statements (Form UCC-1) or appropriate local or foreign equivalents (if any) in appropriate form for filing under the UCC or appropriate local or foreign equivalent of each jurisdiction as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable to perfect the security interests purported to be created by the US Collateral and Guaranty Agreement and the Foreign Security Agreements;

(b) certified copies of Requests for Information or Copies (Form UCC-11), or equivalent reports (if any), listing all effective financing statements that name any Credit Party as debtor and that are filed in the jurisdictions referred to in clause (i) above together with copies of all other financing statements that name any Credit Party as debtor (none of which shall cover any Collateral except to the extent evidencing Permitted Liens or in respect of which the Collateral Agent shall have received termination statements (Form UCC-3 or the equivalent) as shall be required by local or foreign law fully executed for filing);

(c) evidence of the completion (or arrangements therefor reasonably satisfactory to the Collateral Agent) of all other recordings and filings of, or with respect to, the US Collateral and Guaranty Agreement and the Foreign Security Agreements as may be necessary to perfect the security interests intended to be created by the US Collateral and Guaranty Agreement and the Foreign Security Agreements; and

(d) evidence that all other actions necessary to perfect and protect the security interests purported to be created by the US Collateral and Guaranty Agreement and the Foreign Security Agreements have been taken, except as provided in such Security Documents.

SECTION 3.11. US Collateral Assignment. On the Effective Date, each of Holdings and the US Borrower shall have duly authorized, executed and delivered the US Collateral Assignment in the form of Exhibit E (as amended, restated, modified and/or supplemented from time to time in accordance with the terms thereof, the “US Collateral Assignment”) and shall have taken all such further actions as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable, to perfect the security interest purported to be created by the US Collateral Assignment, and the US Collateral Assignment shall be in full force and effect.

SECTION 3.12. Foreign Guaranty. On the Effective Date, the Canadian Borrower, the UK Borrower and each other Foreign Subsidiary of the US Borrower shall have duly authorized, executed and delivered the Foreign Guaranty in the form of Exhibit F, with such changes thereto as the Collateral Agent may reasonably request with respect to any such Foreign Subsidiary, or (at the option of the Administrative Agent) a supplement to the Foreign Guaranty executed and delivered in connection with the Existing Credit Agreement and in form and substance reasonably satisfactory to the Administrative Agent (as amended, restated, modified and/or supplemented from time to time in accordance with the terms thereof and hereof, the “Foreign Guaranty”), and the Foreign Guaranty shall be in full force and effect.

SECTION 3.13. Mortgages. (a) On the Effective Date, the Collateral Agent shall have received:

(i)

fully executed counterparts of Mortgages, in form and substance reasonably satisfactory to the Collateral Agent, which Mortgages shall cover such of the Real Property located in the United States or any State thereof that is owned or leased by any US Credit Party and that is designated as a “US Mortgaged Property” on Part A of Schedule IV, together with evidence that counterparts of such Mortgages have been

delivered to the title insurance company retained by the US Borrower in connection with the execution and delivery of such Mortgages for recording in all places to the extent necessary or, in the reasonable opinion of the Collateral Agent, desirable to effectively create a valid and enforceable first priority mortgage lien, subject only to Permitted Encumbrances, on each such US Mortgaged Property in favor of the Collateral Agent (or such other trustee as may be required or desired under local law) for the benefit of the Secured Parties; and

(ii)

Mortgage Policies on the Mortgages for the US Mortgaged Properties issued by Chicago Title Insurance Company or such other title company as may be reasonably acceptable to the Administrative Agent in amounts reasonably satisfactory to the Collateral Agent and assuring the Collateral Agent that each of the Mortgages on such US Mortgaged Properties is a valid and enforceable first priority mortgage lien on such US Mortgaged Properties, free and clear of all defects and encumbrances except Permitted Encumbrances, and such Mortgage Policies shall otherwise be in form and substance reasonably satisfactory to the Collateral Agent and shall include, as appropriate, an endorsement for future advances under this Agreement and the Notes and for any other matter that the Collateral Agent in its discretion may reasonably request, shall not include an exception for mechanics’ liens, and shall provide for affirmative insurance and such reinsurance as the Collateral Agent in its discretion may reasonably request.

(b) On the Effective Date, with respect to each parcel of Real Property located (i) in Canada that is owned by the Canadian Borrower or any of its Subsidiaries and (ii) in the United Kingdom that is owned by the UK Borrower or any of its Subsidiaries, in each case that is designated on Part C of Schedule IV as a “Foreign Mortgaged Property”, the respective Foreign Credit Party owning same shall have executed and delivered such security documentation as the Collateral Agent may reasonably request to create a valid and enforceable first priority mortgage lien, subject only to Canadian Permitted Encumbrances in the case of the Foreign Mortgaged Property referred to in clause (i) of this Section 3.13(b) and only to Permitted Encumbrances in the case of the Foreign Mortgaged Property referred to in clause (ii) of this Section 3.13(b), on each such Foreign Mortgaged Property in favor of the Collateral Agent (or such other agent or trustee as may be required or desired under local law) for the benefit of the Secured Parties. All actions required pursuant to this Section 3.13(b) shall be taken to the reasonable satisfaction of the Administrative Agent.

(c) On the Effective Date, with respect to each parcel of Real Property located (i) in Canada that is leased by the Canadian Borrower or any of its Subsidiaries and (ii) in the United Kingdom that is leased by the UK Borrower or any of its Subsidiaries, in each case that is designated on Part C of Schedule IV as a “Foreign Lease Subject to an Assignment For Security Purposes”, the respective Foreign Credit Party leasing same shall have executed and delivered such security documentation as the Collateral Agent may reasonably request to create an assignment for security purposes on such Foreign Credit Party’s Leasehold interest in the

respective Foreign Mortgaged Property. All actions required pursuant to this Section 3.13(c) shall be taken to the reasonable satisfaction of the Collateral Agent.

(d) On the Effective Date, with respect to each parcel of Real Property located in the United States that is leased by the US Borrower or any of its Subsidiaries, in each case that is designated on Part D of Schedule IV as a “US Lease Subject to an Assignment For Security Purposes”, the respective US Credit Party leasing same shall have executed and delivered such security documentation as the Collateral Agent may reasonably request to create an assignment for security purposes on such US Credit Party’s Leasehold interest in the respective US Mortgaged Property. All actions required pursuant to this Section 3.13(d) shall be taken to the reasonable satisfaction of the Collateral Agent.

SECTION 3.14. Consent Letter. On the Effective Date, the Administrative Agent shall have received a letter from CT Corporation System, 000 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, substantially in the form of Exhibit G, indicating its consent to its appointment by each Credit Party as its agent to receive service of process as specified in Section 10.07 of this Agreement.

SECTION 3.15. Insurance Certificates. On or before the Effective Date, the Administrative Agent shall have received evidence of insurance complying with the requirements of Section 6.03 for the business and properties of the US Borrower and its Subsidiaries, in form reasonably satisfactory to the Administrative Agent, and naming the Collateral Agent as an additional insured and/or loss payee, and stating that such insurance shall not be canceled or revised without at least 30 days’ prior written notice by the insurer to the Collateral Agent.

SECTION 3.16. Historical Financial Statements; Pro Forma Financial Statements; Projections. (a) On or prior to the Effective Date, there shall have been delivered to the Administrative Agent (i) true and correct copies of the historical financial statements referred to in Section 5.10(b) and (ii) (A) the Pro Forma Balance Sheet, together with a related funds flow statement for the Transaction, and (B) a certificate of the chief financial officer of the US Borrower to the effect that the Pro Forma Balance Sheet fairly presents in all material respects the pro forma financial condition of Holdings and its Subsidiaries as of such date after giving effect to the Transaction, which historical financial statements, Pro Forma Balance Sheet, certificate of Holdings and funds flow statement shall be reasonably satisfactory to the Administrative Agent.

(b) On or prior to the Effective Date, there shall have been delivered to the Administrative Agent the Projections containing the projected consolidated financial statements of the US Borrower and its Subsidiaries certified by an officer of the US Borrower for the five fiscal years ended after the Effective Date, which Projections (i) shall reflect the forecasted consolidated financial conditions and income and expenses of the US Borrower and its Subsidiaries after giving effect to the Transaction and the related financing thereof and the other transactions contemplated hereby and (ii) shall be reasonably satisfactory in form and substance to the Administrative Agent.

SECTION 3.17. Payment of Fees. On the Effective Date, all costs, fees and expenses, and all other compensation due to the Administrative Agent or the Lenders (including legal fees and expenses), shall have been paid to the extent due.

SECTION 3.18. Payment of Existing Credit Agreement Indebtedness. On the Effective Date, Holdings and its Subsidiaries shall have paid down in full their Existing Credit Agreement Indebtedness and terminated all the commitments related thereto, and the Administrative Agent shall be satisfied that all guarantees and security interests relating thereto shall have been amended, amended and restated, supplemented or otherwise modified, in each case as contemplated by this Agreement, simultaneously with the repayment or repurchase of the respective Existing Credit Agreement Indebtedness. After giving effect to the Transaction and the other transactions contemplated hereby and by the Debt Tender Offer Documents, Holdings and its Subsidiaries shall have outstanding no Indebtedness or Preferred Stock or other preferred equity interests other than (a) in the case of the US Borrower, the Senior Subordinated Notes, (b) in the case of Holdings, the Holdings Notes, (c) Indebtedness incurred pursuant to this Agreement and the other Credit Documents, (d) the UK Intercompany Loan, (e) the Retained Existing Indebtedness (if any), (f) the Canadian Intercompany Loan, (g) the Canadian LP Intercompany Loans, (h) other Indebtedness among the US Borrower and its Subsidiaries permitted under the Existing Credit Agreement and (g) in the case of GSLM, Preferred Stock held by US Holdco.

The Administrative Agent shall notify the Borrowers and the Lenders of the Effective Date, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the amendment and restatement of the Existing Credit Agreement pursuant to this Agreement and the obligations of the Lenders to make Loans or accept and purchase B/As and of the Letter of Credit Issuer to issue Letters of Credit hereunder shall not become effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 10.11) at or prior to 5:00 p.m., New York City time, on January 31, 2006 (and, in the event such conditions are not so satisfied or waived, the Commitments shall terminate at such time).

ARTICLE IV

Conditions Precedent to All Credit Events

The obligation of each Lender to make Loans (including Loans made on the Effective Date) and accept and purchase B/As, and the obligation of each Letter of Credit Issuer to issue, amend, renew or extend any Letter of Credit, is subject, at the time of each such Credit Event (except as hereinafter indicated), to the satisfaction of the following conditions:

SECTION 4.01. No Default; Representations and Warranties. At the time of each such Credit Event and also after giving effect thereto (a) there shall exist no Default or Event of Default and (b) all representations and warranties contained herein and in each other Credit Document shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on the date of such Credit Event (it being understood and agreed that any representation or warranty that by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date).

SECTION 4.02. Notice of Borrowing; Letter of Credit Request. (a) Prior to the making of each Loan (excluding Swingline Loans), the Administrative Agent shall have received a Notice of Borrowing meeting the requirements of Section 2.03. Prior to the making of each Swingline Loan, the Swingline Lender shall have received the notice required by Section 2.04.

(b) Prior to the issuance, amendment renewal or extension of each Letter of Credit, the Administrative Agent and the respective Letter of Credit Issuer shall have received a Letter of Credit Request meeting the requirements of Section 2.05.

(c) Prior to the acceptance and purchase of any B/A, the Administrative Agent shall have received a written request meeting the requirements of Section 2.07(c).

The occurrence of the Effective Date and the acceptance of the benefits or proceeds of each Credit Event shall constitute a representation and warranty by each of Holdings and each Borrower to the Administrative Agent and each of the Lenders that all the conditions specified in Article III (with respect to the Effective Date and the Credit Events to occur on the Effective Date) and in this Article IV (with respect to the Effective Date and the Credit Events to occur on or after the Effective Date) and applicable to such Credit Event (other than such conditions to the extent that same are subject to the satisfaction of the Administrative Agent and/or the Required Lenders) exist as of that time.

ARTICLE V

Representations and Warranties

In order to induce the Lenders to enter into this Agreement and to make the Loans, accept and purchase B/As and issue and/or participate in the Letters of Credit provided for herein, each of Holdings and each Borrower makes the following representations and warranties to the Lenders, in each case after giving effect to the Transaction, all of which shall survive the execution and delivery of this Agreement, the making of the Loans and the issuance of the Letters of Credit (with the occurrence of the Effective Date and each Credit Event on and after the Effective Date being deemed to constitute a representation and warranty that the matters specified in this Article V are true and correct in all material respects on and as of the Effective Date and the date of each such Credit Event, unless stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects only as of such earlier date):

SECTION 5.01. Company Status. Each of Holdings and each of its Subsidiaries (a) is a duly organized and validly existing Company in good standing under the laws of the jurisdiction of its organization (provided that the representation and warranty in this clause (a) as it relates to Foreign Subsidiaries of Holdings shall only be made to the extent that such concept is legally applicable under the laws of the respective jurisdictions in which such Foreign Subsidiaries are organized), (b) has the Company power and authority to own its property and assets and to transact the business in which it is engaged and presently proposes to engage and (c) is duly qualified and is authorized to do business and is in good standing in all jurisdictions where it is required to be so qualified and where

the failure to be so qualified would have a Material Adverse Effect (provided that the representation and warranty in this clause (c) as to good standing as it relates to Foreign Subsidiaries of Holdings shall be made only to the extent that such concept is legally applicable under the laws of the respective jurisdictions in which such Foreign Subsidiaries are organized).

SECTION 5.02. Company Power and Authority. Each Credit Party has the Company power and authority to execute, deliver and carry out the terms and provisions of the Documents to which it is a party and has taken all necessary Company action to authorize the execution, delivery and performance of the Documents to which it is a party. Each Credit Party has duly executed and delivered each Document to which it is a party and each such Document constitutes the legal, valid and binding obligation of such Credit Party enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).

SECTION 5.03. No Violation. Neither the execution, delivery or performance by any Credit Party of the Documents to which it is a party, nor compliance by any Credit Party with the terms and provisions thereof, nor the consummation of the transactions contemplated herein or therein, (a) will contravene any material provision of any applicable law, statute, rule or regulation, or any order, writ, injunction or decree of any Governmental Authority, (b) will conflict or be inconsistent with, or result in any breach of, any of the terms, covenants, conditions or provisions of, or constitute a default under, or (other than pursuant to the Security Documents) result in the creation or imposition of (or the obligation to create or impose) any Lien upon any of the property or assets of such Credit Party or any of its Subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, credit agreement or any other material agreement or instrument to which such Credit Party or any of its Subsidiaries is a party or by which it or any of its property or assets are bound or to which such Credit Party and any of its Subsidiaries may be subject or (c) will violate any provision of the certificate or articles of incorporation, by-laws, certificate of partnership, partnership agreement, certificate of limited liability company, limited liability company agreement or equivalent organizational document, as the case may be, of such Credit Party or any of its Subsidiaries.

SECTION 5.04. Litigation. Except as set forth on Schedule 5.04 hereto, there are no actions, suits, proceedings or investigations pending or, to the best knowledge of each of Holdings and each Borrower, threatened (a) with respect to any Credit Document, (b) with respect to the Transaction or any other Document, or (c) with respect to Holdings or any of its Subsidiaries (i) that could reasonably be expected to have a Material Adverse Effect or (ii) that could reasonably be expected to have a material adverse effect on the rights or remedies of the Administrative Agent or the Lenders or on the ability of any Credit Party to perform its respective obligations to the Administrative Agent or the Lenders hereunder and under the other Credit Documents to which it is, or will be, a party. Additionally, there does not exist any judgment, order or injunction prohibiting or imposing material adverse conditions upon the occurrence of any Credit Event.

SECTION 5.05. Use of Proceeds; Margin Regulations. (a) The proceeds of the Term Loans, together with the proceeds of the Revolving Facility Loan, shall be utilized by the Borrowers on the Effective Date solely to (i) pay the Debt Tender Premium and other fees and expenses incurred in connection with the Transaction in an aggregate amount not to exceed $35,000,000 (the “Transaction Costs”), (ii) consummate the Debt Tender Offer and (iii) pay the Existing Credit Agreement Indebtedness.

(b) The proceeds of all Revolving Loans, Swingline Loans and B/As shall be utilized by each Borrower for the general corporate and working capital purposes of the US Borrower and its Subsidiaries (including Permitted Acquisitions), including use of Revolving Loans (the “Revolving Facility Loan”) by any Borrower on the Effective Date in connection with the Transaction.

(c) Neither the making of any Loan, nor the use of the proceeds thereof, nor the occurrence of any other Credit Event, will violate or be inconsistent with the provisions of Regulation U or X of the Board of Governors of the Federal Reserve System.

SECTION 5.06. Governmental Approvals. Except as may have been obtained or made on or prior to the Effective Date (and which remain in full force and effect on the Effective Date), no order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by, any foreign or domestic Governmental Authority, or any subdivision thereof, is required to authorize or is required in connection with (a) the execution, delivery and performance of any Document or (b) the legality, validity, binding effect or enforceability of any Document.

SECTION 5.07. Investment Company Act. Neither Holdings nor any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.

SECTION 5.08. Public Utility Holding Company Act. Neither Holdings nor any of its Subsidiaries is a “holding company”, or a “subsidiary company” of a “holding company”, or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company”, within the meaning of the Public Utility Holding Company Act of 1935, as amended.

SECTION 5.09. True and Complete Disclosure. All information (taken as a whole) heretofore or contemporaneously furnished by or on behalf of Holdings or any of its Subsidiaries in writing to the Administrative Agent or any Lender (including all information contained in the Documents and all information contained in the Confidential Information Memorandum dated November 2005 relating to the facilities hereunder) for purposes of or in connection with this Agreement or any transaction contemplated herein or therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of any such Persons in writing to the Administrative Agent or any Lender will be, true and accurate in all material respects on the date as of which such information is dated or certified and not incomplete by omitting to state any material fact necessary to make such information (taken as a whole) not misleading at such time in light of the circumstances under which such information was provided, it being understood and agreed that for

purposes of this Section 5.09, such information shall not include the Projections or any pro forma financial information.

SECTION 5.10. Financial Condition; Financial Statements; Undisclosed Liabilities; Projections. (a) On and as of the Effective Date, on a pro forma basis after giving effect to the Transaction and to all Indebtedness (including the Loans) incurred, and to be incurred, and Liens created, and to be created, by each Credit Party in connection therewith, with respect to the US Borrower (on a stand-alone basis), the Canadian Borrower (on a stand-alone basis), the UK Borrower (on a stand-alone basis) and the US Borrower and its Subsidiaries (on a consolidated basis), (i) the sum of the assets, at a fair valuation, of the US Borrower (on a stand-alone basis), the Canadian Borrower (on a stand-alone basis), the UK Borrower (on a stand-alone basis) and the US Borrower and its Subsidiaries (on a consolidated basis) will exceed its or their debts, (ii) it has or they have not incurred nor intended to, nor believes or believe that it or they will, incur debts beyond its or their ability to pay such debts as such debts mature and (iii) it or they will have sufficient capital with which to conduct its or their business. For purposes of this Section 5.10(a), “debt” means any liability on a claim, and “claim” means (A) right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured or (B) right to an equitable remedy for breach of performance if such breach gives rise to a payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured. The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

(b) (i)(A) The audited consolidated balance sheets of Holdings as of the end of the fiscal years ended December 31, 2003, and December 31, 2004, respectively, and the related audited consolidated statements of operations, shareholders’ equity and cash flows of Holdings for the fiscal years ended on such dates, and (B) the unaudited consolidated balance sheet of Holdings as of September 30, 2005, and the related unaudited consolidated statements of operations and cash flows of Holdings for the nine-month period ended on such date, copies of which (in each case) have been furnished to the Lenders prior to the Effective Date, present fairly in all material respects the consolidated financial position of Holdings at the dates of such balance sheets and the consolidated results of the operations and cash flows of Holdings for the periods covered thereby. All such financial statements have been prepared in accordance with GAAP consistently applied except to the extent provided in the notes to said financial statements, subject to year-end audit adjustments and the absence of footnotes in the case of the financial statements referred to in clause (B) above.

(ii)

The Pro Forma Balance Sheet, copies of which have been furnished to the Lenders prior to the Effective Date pursuant to Section 3.16(a), present a good faith estimate of the consolidated pro forma financial condition of Holdings at the date of such Pro Forma Financial Statements (after giving effect to the Transaction).

(c) Since December 31, 2004, nothing has occurred that has had or could reasonably be expected to have a Material Adverse Effect.

(d) Except as fully reflected in the financial statements described in Section 5.10(b) and except for the Indebtedness incurred under this Agreement, (i) as of the Effective Date (and after giving effect to any Loans made on such date and the consummation of the Debt Tender Offer and the repayment of Existing Credit Agreement Indebtedness), there were no liabilities or obligations (excluding obligations incurred in the ordinary course of business) with respect to Holdings or any of its Subsidiaries of any nature whatsoever (whether absolute, accrued, contingent or otherwise and whether or not due) that, either individually or in the aggregate, could reasonably be expected to be material to Holdings and its Subsidiaries taken as a whole and (ii) as of the Effective Date, neither Holdings nor any Borrower knows of any basis for the assertion against it or any of its Subsidiaries of any such liability or obligation that, either individually or in the aggregate, are or would be reasonably likely to have, a Material Adverse Effect.

(e) The Projections delivered to the Administrative Agent and the Lenders prior to the Effective Date have been prepared on a basis consistent with the financial statements referred to in Section 5.10(b), and have been prepared in good faith and are based on reasonable assumptions under the then known facts and circumstances. On the Effective Date, the management of each of Holdings and each Borrower believes that the Projections are reasonable and attainable based upon the then known facts and circumstances (it being understood that nothing contained in this Section 5.10(e) shall constitute a representation that the results forecasted in such Projections will in fact be achieved). There is no fact known to Holdings or any Borrower that could reasonably be expected to have a Material Adverse Effect that has not been disclosed herein or in such other documents, certificates and statements furnished to the Lenders for use in connection with the transactions contemplated hereby.

SECTION 5.11. The Security Interests. On and after the Effective Date, each of the Security Documents creates (or after the execution and delivery thereof will create), as security for the obligations secured thereby, a valid and enforceable perfected security interest in and Lien in favor of the Collateral Agent on all of the Collateral subject thereto, superior to and prior to the rights of all third Persons, and subject to no other Liens (except that (a) the Security Agreement Collateral may be subject to Permitted Liens relating thereto, (b) the Mortgaged Properties may be subject to Permitted Encumbrances relating thereto and the Mortgaged Property referred to in Section 3.13(c)(i) may be subject to Canadian Permitted Encumbrances relating thereto and (c) the Pledged Collateral may be subject to the Liens described in clauses (a) and (e) of Section 7.03); provided that the security documentation covering (i) Real Property designated on Part B of Schedule IV as a “Foreign Mortgaged Property” and (ii) Real Property designated on Part C of Schedule IV as a “Foreign Lease Subject to an Assignment For Security Purposes” may be subject to applicable limitations under local law. No filings or recordings are required in order to perfect and/or render enforceable as against third parties the security interests created under any Security Document except for filings or recordings required in connection with any such Security Document that shall have been made (A) on or prior to the Effective Date (or (1) within 10 days thereafter in the case of UCC-1 filings in connection with the US Collateral and Guaranty Agreement and filings with the Quebec Register of Personal and

Moveable Real Rights in connection with a Foreign Security Agreement entered into by Subsidiaries of Holdings organized under the laws of Canada (or any province or territory thereof) or (2) within 21 days in the case of filings on Form 395 in connection with a Foreign Security Agreement entered into by Subsidiaries of Holdings organized under the laws of England and Wales in the United Kingdom) as contemplated by Section 3.10 or 3.12 or (B) on or prior to the execution and delivery thereof as contemplated by Sections 6.11, 6.12 and 7.15 (or (1) within 10 days thereafter in the case of UCC-1 filings in connection with the US Collateral and Guaranty Agreement and filings with the Quebec Register of Personal and Moveable Real Rights in connection with a Foreign Security Agreement entered into by Subsidiaries of Holdings organized under the laws of Canada (or any province or territory thereof) or (2) within 21 days (x) in the case of filings on Form 395 in connection with a Foreign Security Agreement entered into by Subsidiaries of Holdings organized under the laws of England and Wales in the United Kingdom) or (y) in the case of other filings in connection with a Foreign Security Agreement entered into by Subsidiaries of Holdings not organized under the laws of the United States (or any state thereof or the District of Columbia), Canada (or any province or territory thereof) or England and Wales in the United Kingdom.

SECTION 5.12. Pension Matters. (a)(i) Each Plan (and each related trust, insurance contract or fund) is in substantial compliance with its terms and with all applicable laws, including without limitation ERISA and the Code; (ii) each Plan that is intended to be qualified under Section 401(a) of the Code has received a determination letter from the Internal Revenue Service to the effect that it meets the requirements of Sections 401(a) and 501(a) of the Code and such determination letter has not been revoked; (iii) no Reportable Event has occurred; (iv) no Plan has an Unfunded Current Liability; (v) no Plan that is subject to Section 412 of the Code or Section 302 of ERISA has an accumulated funding deficiency, within the meaning of such sections of the Code or ERISA, or has applied for or received a waiver of an accumulated funding deficiency or an extension of any amortization period, within the meaning of Section 412 of the Code or Section 303 or 304 of ERISA; (vi) neither Holdings nor any Subsidiary of Holdings nor any ERISA Affiliate has incurred any liability to or on account of a Multiemployer Plan pursuant to Section 515, 4201, 4204, or 4212 of ERISA; (vii) no proceedings have been instituted under Section 4042 of ERISA to terminate or appoint a trustee to administer any Plan that is subject to Title IV of ERISA; and (viii) no lien imposed under the Code or ERISA on the assets of Holdings or any Subsidiary of Holdings or any ERISA Affiliate exists or is likely to arise on account of any Plan; except, with respect to clauses (iii)-(viii), to the extent any exceptions thereunder could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(b) Each Foreign Pension Plan has been maintained in substantial compliance with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and orders and has been maintained, where required, in good standing with applicable regulatory authorities. Neither Holdings nor any of its Subsidiaries has incurred any liability that could reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect in connection with the termination of or withdrawal from any Foreign Pension Plan that has not been accrued or otherwise properly reserved on Holdings’s or such Subsidiary’s balance sheet. With respect to each Foreign Pension Plan that is required by

applicable local law or by its terms to be funded through a separate funding vehicle, the present value of the accrued benefit liabilities (whether or not vested) under each such Foreign Pension Plan, determined as of the latest valuation date for such Foreign Pension Plan on the basis of actuarial assumptions, each of which is reasonable or utilized in accordance with applicable law, rule, or regulation, did not exceed the current value of the assets of such Foreign Pension Plan allocable to such benefit liabilities except to the extent that such underfunding could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect.

SECTION 5.13. Capitalization. On the Effective Date, (a) the authorized capital stock of the US Borrower shall be as set forth on Schedule 5.13, all of which shall be issued and outstanding and owned by Holdings and (b) the authorized capital stock of the Canadian Borrower and UK Borrower shall be as set forth on Schedule 5.13, all of which shall be issued and outstanding and owned, directly or indirectly through Wholly-Owned Subsidiaries of the US Borrower, by the US Borrower.

SECTION 5.14. Subsidiaries. On and as of the Effective Date, Holdings has no Subsidiaries other than those Subsidiaries listed on Schedule V. Schedule V correctly sets forth, as of the Effective Date, (a) the percentage ownership (direct and indirect) of Holdings in each class of capital stock or other equity interests of each of its Subsidiaries and also identifies the direct owner thereof and (b) the jurisdiction of organization of each Subsidiary of Holdings. All outstanding equity interests of each Subsidiary of Holdings have been duly and validly issued, are fully paid and non-assessable, have been issued free of preemptive rights and, in the case of equity of Foreign Subsidiaries, no depository receipts have been issued in respect of such equity. No Subsidiary of Holdings has outstanding any securities convertible into or exchangeable for its capital stock or outstanding any right to subscribe for or to purchase, or any options or warrants for the purchase of, or any agreement providing for the issuance (contingent or otherwise) of or any calls, commitments or claims of any character relating to, its capital stock or any stock appreciation or similar rights.

SECTION 5.15. Intellectual Property, etc. Except as disclosed in Schedule 5.15 hereto, each of Holdings and each of its Subsidiaries owns or has a valid existing license to use all patents, trademarks, permits, service marks, trade names, copyrights, licenses, franchises and other rights with respect to the foregoing reasonably necessary for the conduct of its business, without any known conflict with the rights of others which, or the failure to obtain which, as the case may be, could reasonably be expected to result in a Material Adverse Effect.

SECTION 5.16. Compliance with Statutes, etc. Except as set forth in Schedule 5.16 hereto, each of Holdings and each of its Subsidiaries is in compliance with all applicable statutes, regulations, rules and orders of, and all applicable restrictions imposed by, all Governmental Authorities, domestic or foreign, in respect of the conduct of its business and the ownership of its property, except such non-compliance as is not reasonably likely to, individually or in the aggregate, have a Material Adverse Effect.

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SECTION 5.17. Environmental Matters. Except as set forth in Schedule 5.17 hereto and except for any matters that could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect:

(a) each of Holdings and each of its Subsidiaries has complied with, and on the date of each Credit Event is in compliance with, all applicable Environmental Laws and the requirements of any permits issued under such Environmental Laws;

(b) there are no pending or, to the best knowledge of each of Holdings and each Borrower after due inquiry, threatened Environmental Claims against Holdings or any of its Subsidiaries, or against any Real Property owned or operated by Holdings or any of its Subsidiaries;

(c) there are no facts, circumstances, conditions or occurrences with respect to the business or operations of Holdings or any of its Subsidiaries or any Real Property currently or formerly owned or operated by Holdings or any of its Subsidiaries that could reasonably be expected (i) to form the basis of an Environmental Claim against Holdings or any of its Subsidiaries or any such Real Property or (ii) to cause any such Real Property to be subject to any restrictions on the ownership, occupancy, use or transferability of such Real Property by Holdings or any of its Subsidiaries under any applicable Environmental Law;

(d) Hazardous Materials have not at any time been generated, used, treated or stored on, or transported by Holdings or any of its Subsidiaries or by any Person acting for or under contract to Holdings or any of its Subsidiaries or, to the knowledge of each of Holdings and each Borrower, by any other Person, to or from any Real Property owned or operated by Holdings or any of its Subsidiaries; and

(e) Hazardous Materials have not at any time been Released by Holdings or any of its Subsidiaries or by any Person acting for or under contract to Holdings or any of its Subsidiaries or, to the knowledge of each of Holdings and each Borrower, by any other Person on, at, under or from any Real Property currently or formerly owned or operated by Holdings or any of its Subsidiaries.

SECTION 5.18. Properties. All material Real Property owned by Holdings or any of its Subsidiaries and all material Leaseholds leased by Holdings or any of its Subsidiaries, in each case as of the Effective Date, and the nature of the interest therein, is correctly set forth in Schedule IV. Each of Holdings and each of its Subsidiaries has good and marketable title to, or a validly subsisting leasehold interest in, all material properties owned or leased by it, including all Real Property reflected in Schedule IV and in the financial statements (including the Pro Forma Balance Sheet) referred to in Section 5.10(b) (except such properties sold since the dates of the respective financial statements referred to therein in accordance with Section 7.02), free and clear of all Liens, other than Permitted Encumbrances (except that the Mortgaged Property referred to in Section 3.13(c)(i) may be subject to Canadian Permitted Encumbrances relating thereto).

SECTION 5.19. Labor Relations. Neither Holdings nor any of its Subsidiaries is engaged in any unfair labor practice that could reasonably be expected to

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have a Material Adverse Effect. Except as disclosed in Schedule 5.19 hereof, there is (a) no unfair labor practice complaint pending against Holdings or any of its Subsidiaries or, to the best knowledge of each of Holdings and each Borrower, threatened against any of them, before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement is so pending against Holdings or any of its Subsidiaries or, to the best knowledge of each of Holdings and each Borrower, threatened against any of them, (b) no strike, labor dispute, slowdown or stoppage pending against Holdings or any of its Subsidiaries or, to the best knowledge of each of Holdings and each Borrower, threatened against Holdings or any of its Subsidiaries, and (c) no union representation question existing with respect to the employees of Holdings or any of its Subsidiaries and, to the best knowledge of each of Holdings and each Borrower, no union organizing activities are taking place, except (with respect to any matter specified in clause (a), (b) or (c) above, individually and in the aggregate) such as is not reasonably likely to have a Material Adverse Effect.

SECTION 5.20. Tax Returns and Payments. Except as provided in Part A of Schedule III, each of Holdings and each of its Subsidiaries has filed all United States Federal income tax returns and all other material tax returns, domestic and foreign, required to be filed by it and has paid all material Taxes and assessments payable by it that have become due, except for those contested in good faith and fully provided for on the financial statements of Holdings and its Subsidiaries in accordance with GAAP. Each of Holdings and each of its Subsidiaries has provided adequate reserves (in the good faith judgment of the management of Holdings) for the payment of all United States Federal, state and foreign income taxes that have not yet become due. Except as provided in Part B and C of Schedule III, there is no material action, suit, proceeding, investigation, audit or claim now pending or, to the knowledge of each of Holdings and each Borrower, threatened by any Governmental Authority regarding any Taxes relating to Holdings or any of its Subsidiaries. Except as provided in Part D of Schedule III, neither Holdings nor any of its Subsidiaries has entered into an agreement or waiver or been requested to enter into an agreement or waiver extending any statute of limitations relating to the payment or collection of Taxes of Holdings or any of its Subsidiaries, or is aware of any circumstances that would cause the taxable years or other taxable periods of Holdings or any of its Subsidiaries not to be subject to the normally applicable statute of limitations, in each case except to the extent the liability for Taxes of Holdings or such Subsidiary giving rise to any extension of any such normally applicable statute of limitation is not material.

SECTION 5.21. Insurance. Set forth on Schedule VI is a true, correct and complete summary of all insurance carried by each Credit Party on and as of the Effective Date, with the amounts insured set forth therein.

SECTION 5.22. The Transaction. At the time of consummation thereof, the Transaction shall have been consummated in all material respects in accordance with the terms of the relevant Documents therefor and all applicable laws. At the time of consummation thereof, all material consents and approvals of, and filings and registrations with, and all other actions in respect of, all governmental agencies, authorities or instrumentalities required in order to make or consummate the Transaction in accordance with the terms of the relevant Documents therefor and all applicable laws have been

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obtained, given, filed or taken and are or will be in full force and effect (or effective judicial relief with respect thereto has been obtained). All applicable waiting periods with respect thereto have or, prior to the time when required, will have, expired without, in all such cases, any action being taken by any competent authority that restrains, prevents, or imposes material adverse conditions upon the Transaction. Additionally, there does not exist any judgment, order or injunction prohibiting or imposing material adverse conditions upon any element of the Transaction, the occurrence of any Credit Event, or the performance by Holdings and its Subsidiaries of their respective obligations under the Documents and all applicable laws.

SECTION 5.23. Subordination. The subordination provisions contained in the Senior Subordinated Note Documents and the Holdings 2013 Notes and, on and after the execution and delivery thereof, the Additional Senior Subordinated Note Documents, Permitted Subordinated Refinancing Indebtedness and initial and successive Permitted Holdings Refinancing Indebtedness in respect of the Holdings 2013 Notes, are enforceable against Holdings, each Borrower, the respective Subsidiary Guarantors and the holders of such Indebtedness, as applicable, and all Loan Document Obligations hereunder and under the other Credit Documents (including the US Collateral and Guaranty Agreement and the Foreign Guaranty) are within the definitions of “Senior Debt” (or “Guarantor Senior Debt” in the case of the obligations of any Subsidiary Guarantor) and “Designated Senior Debt” (or any similar terms in any such case) included in such subordination provisions.

ARTICLE VI

Affirmative Covenants

Each of Holdings and each Borrower hereby covenants and agrees that as of the Effective Date and thereafter for so long as this Agreement is in effect and until the Total Commitment has terminated, no Letters of Credit or Notes are outstanding and the Loans, LC Disbursements and all amounts due in respect of B/As, together with interest, fees and all other Loan Document Obligations (other than any indemnities described in Section 10.12 that are not then due and payable) incurred hereunder, are paid in full:

SECTION 6.01. Information Covenants. The US Borrower will furnish to each Lender:

(a) Quarterly Financial Statements. Within 45 days after the close of the first three quarterly accounting periods in each fiscal year of Holdings, (i) (x) the consolidated balance sheet of Holdings as at the end of such quarterly accounting period setting forth comparative figures for the most recently ended fiscal year, (y) the related consolidated statements of operations of Holdings for such quarterly accounting period setting forth comparative figures for the corresponding quarterly accounting period in the prior fiscal year and (z) the related consolidated statements of operations, stockholders’ equity and cash flows of Holdings for the elapsed portion of the fiscal year ended with the last day of such quarterly accounting period, in each case of this clause (z) (except with respect to such consolidated statement of stockholders’ equity) setting forth comparative figures for the corresponding elapsed period in the prior fiscal year, and (ii) management’s discussion and analysis of

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significant operational and financial developments during such quarterly accounting period, all of which shall be in reasonable detail and certified by the chief financial officer or other Authorized Officer of Holdings that they fairly present in all material respects the consolidated financial condition of Holdings as of the dates indicated and the results of their operations and changes in their cash flows for the periods indicated, subject to normal year-end audit adjustments and the absence of footnotes. If the US Borrower has designated any Unrestricted Subsidiaries hereunder, then the quarterly financial information required by this Section 6.01(a) shall include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in management’s discussion and analysis of operational and financial developments, of the financial condition and results of operations of Holdings and its Subsidiaries separate from the financial condition and results of operations of the Unrestricted Subsidiaries of Holdings.

(b) Annual Financial Statements. Within 90 days after the close of each fiscal year of Holdings, (i) the consolidated balance sheet of Holdings as at the end of such fiscal year and the related consolidated statements of operations and stockholders’ equity and of cash flows for such fiscal year, in each case setting forth comparative consolidated figures for the preceding fiscal year and (except for such comparable budgeted figures) certified by independent certified public accountants of recognized national standing as shall be reasonably acceptable to the Administrative Agent, in each case without any qualification or material exception as to the scope of such audit and to the effect that such statements fairly present in all material respects the consolidated financial condition of Holdings as of the dates indicated and the results of their operations and changes in financial position for the periods indicated in conformity with GAAP applied on a basis consistent with prior years, together with a certificate of such accounting firm stating that in the course of its regular audit of the consolidated business of Holdings, which audit was conducted in accordance with generally accepted auditing standards, no Default or Event of Default that has occurred and is continuing has come to their attention or, if such a Default or an Event of Default has come to their attention, a statement as to the nature thereof, and (ii) management’s discussion and analysis of significant operational and financial developments during such fiscal year. If the US Borrower has designated any Unrestricted Subsidiaries hereunder, then the annual financial information required by this Section 6.01(b) shall include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in management’s discussion and analysis of operational and financial developments, of the consolidated financial condition and results of operations of Holdings separate from the financial condition and results of operations of the Unrestricted Subsidiaries of Holdings.

(c) Budgets, etc. Not more than 60 days after the commencement of each fiscal year of Holdings, consolidated budgets (including Capital Expenditures budgets) of Holdings and its Subsidiaries (i) in reasonable detail for each of the four fiscal quarters of such fiscal year and (ii) in summary form for each of the four fiscal years immediately following such fiscal year, in each case as customarily prepared by management for its internal use setting forth, with appropriate discussion, the principal assumptions upon which such budgets are based.

(d) Officer’s Certificates. At the time of the delivery of the financial statements provided for in Sections 6.01(a) and (b), a certificate of the chief financial officer or other Authorized Officer of Holdings to the effect that, to the best of such officer’s knowledge,

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no Default or Event of Default exists or, if any Default or Event of Default does exist, specifying the nature and extent thereof, which certificate shall, (i) if delivered in connection with the financial statements in respect of a period ending on the last day of a fiscal quarter or a fiscal year of Holdings, set forth (A) the calculations required to establish whether (1) the US Borrower and its Subsidiaries were in compliance with the provisions of Sections 2.12, 7.02, 7.04(d), (e), (j), (m) and (n), 7.05(f), (g), (k), (m), (o) and (p), 7.06(b) (e), (h), (i) and (j), and (2) the US Borrower and its Subsidiaries were in compliance with the provisions of Sections 7.09, 7.10 and 7.11, in each case as at the end of such fiscal quarter or year, as the case may be, (B) the calculation of the Total Leverage Ratio and the Adjusted Total Leverage Ratio as at the last day of the respective fiscal quarter or fiscal year of the US Borrower and the Consolidated Fixed Charge Coverage Ratio for the four fiscal quarter period ended on such last day, as the case may be, and (C) a reasonably detailed summary of the differences between such financial statements of Holdings and what would be reflected in consolidated financial statements of the US Borrower prepared on a comparable basis, including calculations showing the adjustments made to consolidated net income of Holdings reflected in such financial statements to arrive at Consolidated Net Income and Consolidated EBITDA for such period, and (ii) if delivered with the financial statements required by Section 6.01(b), set forth in reasonable detail the amount of (and the calculations required to establish the amount of) Adjusted Excess Cash Flow for the respective Excess Cash Flow Payment Period.

(e) Notice of Default or Litigation. Promptly, and in any event within three Business Days after an executive officer of Holdings or any of its Subsidiaries obtains actual knowledge thereof, notice of (i) the occurrence of any event that constitutes a Default or an Event of Default, which notice shall specify the nature and period of existence thereof and what action each of Holdings and each Borrower proposes to take with respect thereto, (ii) any litigation or proceeding pending or threatened (A) against Holdings or any of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect, (B) with respect to any material Indebtedness of Holdings or any of its Subsidiaries or (C) with respect to any Document (other than such Documents referred to in clause (f) or (g) of the definition thereof), (iii) any governmental investigation pending or threatened against Holdings or any of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect and (iv) any other event that could reasonably be expected to have a Material Adverse Effect.

(f) Auditors’ Reports. Promptly upon receipt thereof, a copy of each report or “management letter” submitted to Holdings or any of its Subsidiaries by its independent accountants in connection with any annual, interim or special audit made by them of the books of Holdings or any of its Subsidiaries and the management’s non-privileged responses thereto.

(g) Environmental Matters. Promptly after an executive officer of Holdings or any of its Subsidiaries obtains actual knowledge of any of the following (but only to the extent that any of the following, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect), written notice of:

(i)	any pending or threatened Environmental Claim against Holdings or any of its Subsidiaries or any Real Property owned or operated by Holdings or any of its Subsidiaries; and

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(ii)

any condition or occurrence on any Real Property at any time owned or operated by Holdings or any of its Subsidiaries that (A) results in non-compliance by Holdings or any of its Subsidiaries with any applicable Environmental Law; (B) could reasonably be anticipated to form the basis of an Environmental Claim against Holdings or any of its Subsidiaries or any such Real Property; or (C) results in the taking of any removal or remedial action in response to the actual or alleged presence of any Hazardous Material.

All such notices shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal or remedial action and each of Holdings’s, each of its Subsidiary’s and each other third Person’s response or proposed response thereto.

(h) Notice of Commitment Reductions and Mandatory Repayments. On or prior to the date of any reduction to the Total Revolving Loan Commitment or any mandatory repayment of outstanding Term Loans pursuant to any of Sections 2.12(c) through (e), inclusive, the US Borrower shall provide written notice of the amount of the respective reduction or repayment, as the case may be, to the Total Revolving Loan Commitment or the outstanding Term Loans, as applicable, and the calculation thereof (in reasonable detail).

(i) Other Information. Promptly upon transmission thereof, copies of any filings and registrations with, and reports to, the SEC by Holdings or any of its Subsidiaries and copies of all financial statements, proxy statements, notices and reports as Holdings or any of its Subsidiaries shall send generally to analysts and the holders of their capital stock or of any Permitted Debt, Holdings Notes, Permitted Holdings Refinancing Indebtedness and Senior Subordinated Notes Indebtedness, in their capacity as such holders (to the extent not theretofore delivered to the Lenders pursuant to this Agreement) and, with reasonable promptness, such other information or documents (financial or otherwise) as the Administrative Agent on its own behalf or on behalf of any Lender may reasonably request from time to time.

(j) Collateral Information. Concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of the chief financial officer of the US Borrower setting forth the information required pursuant to (i) (A) in the case of financial statements delivered under clause (a) above, the paragraphs numbered 1, 2, 3, 8, 9, 11 and 13 of the US Perfection Certificate or (B) in the case of financial statements delivered under clause (b) above, the paragraphs numbered 1, 2, 3, 8, 9, 10, 11, 12 and 13 of the US Perfection Certificate and (ii) the equivalent paragraphs under Foreign Perfection Certificates and such other paragraphs under Foreign Perfection Certificates and such other information as the Administrative Agent may reasonably request and/or as the Administrative Agent shall have designated, or in each case confirming that there has been no change in such information since the date of the applicable Perfection Certificate delivered on the later of the Effective Date and the date of the most recent certificate delivered pursuant to this Section 6.01(j).

SECTION 6.02. Books, Records and Inspections. Holdings will, and will cause each of its Subsidiaries to, keep proper books of record and account in which full, true and correct entries in conformity with GAAP and all requirements of law shall be made of all dealings and transactions in relation to its business and activities. Holdings will, and will

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cause each of its Subsidiaries to, permit, upon reasonable notice to the chief financial officer or other Authorized Officer of Holdings, officers and designated representatives of the Administrative Agent or the Required Lenders to visit and inspect under the guidance of officers of Holdings any of the properties or assets of Holdings and any of its Subsidiaries in whomsoever’s possession, and to examine the books of account of Holdings and any of its Subsidiaries and discuss the affairs, finances and accounts of Holdings and of any of its Subsidiaries with, and be advised as to the same by, their officers and independent accountants, all at such reasonable times and intervals and to such reasonable extent as the Administrative Agent or the Required Lenders may desire; provided that, excluding any such visits and inspections during the continuation of a Default or an Event of Default, neither the Administrative Agent nor the Required Lenders shall conduct such visits or inspections more often than two times during any calendar year (or such greater number of times as the US Borrower may agree to from time to time); and provided further that, so long as no Default or Event of Default is then in existence, Holdings shall have the right to participate in any discussions of the Administrative Agent or the Lenders with any independent accountants of Holdings.

SECTION 6.03. Insurance. (a) The US Borrower will, and will cause each of its Subsidiaries to, (i) maintain, with financially sound and reputable insurance companies, insurance on all its property in at least such amounts and against at least such risks as is consistent and in accordance with industry practice and (ii) furnish to the Administrative Agent and each of the Lenders, upon request, full information as to the insurance carried. The provisions of this Section 6.03 shall be deemed supplemental to, but not duplicative of, the provisions of any Security Documents that require the maintenance of insurance.

(b) The US Borrower will, and will cause each of its Subsidiaries to, at all times keep the respective property of the US Borrower and its Subsidiaries (except real or personal property leased or financed through third parties in accordance with this Agreement) insured in favor of the Collateral Agent, and all policies or certificates with respect to such insurance (and any other insurance maintained by, or on behalf of, the US Borrower or any Subsidiary of the US Borrower) (i) shall be endorsed to the Collateral Agent’s satisfaction for the benefit of the Collateral Agent (including by naming the Collateral Agent as certificate holder, mortgagee and loss payee with respect to real property, certificate holder and loss payee with respect to personal property, additional insured with respect to general liability and umbrella liability coverage and certificate holder with respect to workers’ compensation insurance), (ii) shall state that such insurance policies shall not be cancelled or materially changed without at least 30 days’ prior written notice thereof by the respective insurer to the Collateral Agent and (iii) shall, upon the request of the Collateral Agent, be deposited with the Collateral Agent.

(c) If the US Borrower or any of its Subsidiaries shall fail to maintain all insurance in accordance with this Section 6.03, or if the US Borrower or any of its Subsidiaries shall fail to so name the Collateral Agent as an additional insured, mortgagee or loss payee, as the case may be, or so deposit all certificates with respect thereto, the Administrative Agent and/or the Collateral Agent shall have the right (but shall be under no obligation) to procure such insurance, and the Credit Parties agree to jointly and severally reimburse the Administrative

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Agent or the Collateral Agent, as the case may be, for all costs and expenses of procuring such insurance.

SECTION 6.04. Payment of Taxes. Holdings will pay and discharge, and will cause each of its Subsidiaries to pay and discharge, all material Taxes imposed upon it or upon its income or profits, or upon any material properties belonging to it, prior to the date on which penalties attach thereto, and all material lawful claims for sums that have become due and payable that, if unpaid, might become a Lien not otherwise permitted under Section 7.03(a); provided that neither Holdings nor any of its Subsidiaries shall be required to pay any such Taxes that are being contested in good faith and by proper proceedings if (a) Holdings has maintained adequate reserves with respect thereto in accordance with GAAP and (b) such failure to pay could not reasonably be expected to result in a Material Adverse Effect.

SECTION 6.05. Corporate Franchises. Holdings will do, and will cause each of its Subsidiaries to do, or cause to be done, all things necessary to preserve and keep in full force and effect its existence and its material rights, franchises, authority to do business, licenses and patents, except for rights, franchises, authority to do business, licenses and patents the loss of which (individually or in the aggregate) could not reasonably be expected to have a Material Adverse Effect; provided, however, that any transaction permitted by Section 7.02 will not constitute a breach of this Section 6.05.

SECTION 6.06. Compliance with Statutes, etc. Holdings will, and will cause each of its Subsidiaries to, comply with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all Governmental Authorities, domestic or foreign, in respect of the conduct of its business and the ownership of its property, except for such non-compliance as would not, either individually or in the aggregate, have a Material Adverse Effect or a material adverse effect on the ability of any Credit Party to perform its obligations under any Credit Document to which it is a party.

SECTION 6.07. Compliance with Environmental Laws. (a) Holdings will comply, and will cause each of its Subsidiaries to comply, in all material respects with all Environmental Laws applicable to their businesses and to the ownership or use of Real Property now or hereafter owned or operated by Holdings or any of its Subsidiaries, will promptly pay or, with respect to any of its Subsidiaries, cause to be paid all costs and expenses incurred in connection with such compliance, and will keep or cause to be kept all such Real Property free and clear of any Liens imposed pursuant to such Environmental Laws and (b) neither Holdings nor any of its Subsidiaries will generate, use, treat, store or Release, or permit the generation, use, treatment, storage or Release of, Hazardous Materials on any Real Property owned or operated by Holdings or any of its Subsidiaries other than in compliance with Environmental Laws, or transport or permit the transportation of Hazardous Materials other than in compliance with Environmental Laws, unless the failure to comply with the requirements specified in clause (a) or (b) above could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

SECTION 6.08. Pension Matters. To the extent that any of the following events could, either individually or in the aggregate, reasonably be expected to result in

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liabilities in excess of $2,500,000, as soon as possible and, in any event, within ten Business Days after Holdings or any Subsidiary of Holdings or any ERISA Affiliate knows or has reason to know of the occurrence of any of the following, Holdings will deliver to each of the Lenders a certificate of the chief financial officer or other Authorized Officer of Holdings setting forth the full details as to such occurrence and the action, if any, that Holdings, such Subsidiary or such ERISA Affiliate is required or proposes to take with respect thereto: that a Reportable Event has occurred; that an accumulated funding deficiency, within the meaning of Section 412 of the Code or Section 302 of ERISA, has been incurred or an application has been made or is reasonably expected to be made for a waiver or modification of the minimum funding standard or an extension of any amortization period under Section 412 of the Code or Section 303 or 304 of ERISA with respect to a Plan; t

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CREDIT AGREEMENT Dated as of November 28, 2001, as Amended and Restated as of April 10, 2002, as further Amended and Restated as of December 22, 2005, Among COMPASS MINERALS INTERNATIONAL, INC. (formerly known as SALT HOLDINGS CORPORATION); COMPASS...