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VISHAY INTERTECHNOLOGY, INC. FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

Loan Agreement

VISHAY INTERTECHNOLOGY, INC. FOURTH AMENDED AND RESTATED CREDIT AGREEMENT | Document Parties: VISHAY INTERTECHNOLOGY INC | COMERICA BANK, You are currently viewing:
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VISHAY INTERTECHNOLOGY INC | COMERICA BANK,

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Title: VISHAY INTERTECHNOLOGY, INC. FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
Governing Law: Michigan     Date: 6/25/2008
Industry: Electronic Instr. and Controls     Law Firm: Kramer Levin     Sector: Technology

VISHAY INTERTECHNOLOGY, INC. FOURTH AMENDED AND RESTATED CREDIT AGREEMENT, Parties: vishay intertechnology inc , comerica bank
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Exhibit 10.1

Execution Version

 

 

 

VISHAY INTERTECHNOLOGY, INC.

FOURTH AMENDED AND RESTATED

CREDIT AGREEMENT

DATED AS OF JUNE 24, 2008

COMERICA BANK,
AS LEAD ARRANGER, BOOK RUNNING MANAGER AND
ADMINISTRATIVE AGENT

BANK OF AMERICA N.A. AS CO-SYNDICATION AGENT

JPMORGAN CHASE BANK, N.A AS CO-SYNDICATION AGENT

HSBC BANK USA, NATIONAL ASSOCIATION AS DOCUMENTATION AGENT

 




TABLE OF CONTENTS
 
      Page
1.  DEFINITIONS 
  1.1  Certain Defined Terms 
  1.2  Euro  28 
 
2.  REVOLVING CREDIT  30 
  2.1  Commitment  30 
  2.2  Accrual of Interest and Maturity; Evidence of Indebtedness  31 
  2.3  Requests for and Refundings and Conversions of Advances  32 
  2.4  Disbursement of Advances  34 
  2.5  (a) Swing Line Advances  36 
  2.6  Prime-based Interest Payments  44 
  2.7  Eurocurrency-based Interest Payments and Quoted Rate Interest
Payments 
44 
  2.8  Interest Payments on Conversions  45 
  2.9  Interest on Default  45 
  2.10  Optional Prepayment  45 
  2.11        Determination, Denomination and Redenomination of Alternative   
    Currency Advances  46 
  2.12  Prime-based Advance in Absence of Election or Upon Default  47 
  2.13  Revolving Credit Facility Fee  47 
  2.14  Currency Appreciation; Mandatory Reduction of Indebtedness  47 
  2.15  Optional Reduction or Termination of Revolving Credit Aggregate Commitment  49 
  2.16  Extensions of Revolving Credit Maturity Date  50 
  2.17  Revolving Credit Optional Increase  52 
  2.18  Application of Revolving Credit Advances  54 
  2.19  Additional Mandatory Prepayments  54 
 
3.  LETTERS OF CREDIT  55 
  3.1  Letters of Credit  55 
  3.2  Conditions to Issuance  55 
  3.3  Notice  57 
  3.4  Letter of Credit Fees  57 
  3.5  Other Fees  59 
  3.6  Drawings and Demands for Payment Under Letters of Credit  59 
  3.7  Obligations Irrevocable  61 
  3.8  Risk Under Letters of Credit  62 
  3.9  Indemnification  63 
  3.10  Right of Reimbursement  64 
  3.11  Existing Letters of Credit  65 
 
4.       TERM LOAN  65 
  4.1  Term Loan  65 

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  4.2  Accrual of Interest and Maturity; Evidence of Indebtedness  65 
  4.3  Repayment of Principal  66 
  4.4  Requests for Term Loan Advances; Refundings and Conversions of   
    Advances of Term Loan  67 
  4.6  Prime-based Advance in Absence of Election or Upon Default  71 
  4.7  Interest Payments; Default Interest  71 
  4.8  Optional Prepayment of Term Loan  72 
  4.9  Mandatory Prepayment of Term Loan  73 
  4.10  Use of Proceeds  74 
 
4A.    MARGIN ADJUSTMENTS  74 
  4A.1        Margin Adjustments  74 
  4A.2  Margins  75 
 
5.  CONDITIONS  75 
  5.1  Execution of this Agreement and the other Loan Documents  75 
  5.2  Corporate Authority  76 
  5.3  Collateral Documents and Guaranties  76 
  5.4  Representations and Warranties — All Parties  76 
  5.5  Compliance with Certain Documents and Agreements  76 
  5.6  Opinion of Counsel  76 
  5.7  Certificates  77 
  5.8  Payment of Fees  77 
  5.9  Other Documents and Instruments  77 
  5.10  Continuing Conditions  77 
 
6.  REPRESENTATIONS AND WARRANTIES  77 
  6.1  Corporate Existence  77 
  6.2  Due Authorization Company  78 
  6.3  Due Authorization Significant Subsidiaries  78 
  6.4  Title to Material Property  78 
  6.5  Encumbrances  78 
  6.6  Subsidiaries  78 
  6.7  Taxes  79 
  6.8  No Defaults  79 
  6.9  Compliance with Laws  79 
  6.10  Enforceability of Agreement and Loan Documents  79 
  6.11  Non-contravention — Company  80 
  6.12  Non-contravention — Other Parties  80 
  6.13  No Litigation — Company  80 
  6.14  No Litigation — Other Parties  80 
  6.15  Consents, Approvals and Filings, Etc.  81 
  6.16  Agreements Affecting Financial Condition  81 
  6.17  No Investment Company; No Margin Stock  81 
  6.18  ERISA  82 
  6.19  Environmental Matters and Safety Matters  82 
  6.20  Accuracy of Information  83 

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7.      AFFIRMATIVE COVENANTS  84 
  7.1           Preservation of Existence, Etc.  84 
  7.2  Keeping of Books  84 
  7.3  Reporting Requirements  84 
  7.4  Tangible Net Worth  85 
  7.5  Leverage Ratio  85 
  7.6  Fixed Charge Coverage Ratio  86 
  7.7  Inspections  86 
  7.8  Taxes  86 
  7.9  Further Assurances and Information  86 
  7.10  Insurance  86 
  7.11  Indemnification  87 
  7.12  Governmental and Other Approvals  87 
  7.13  Compliance with Contractual Obligations and Laws  87 
  7.14  ERISA  88 
  7.15  Environmental Matters  88 
  7.16  Significant Subsidiaries  89 
  7.17  Security and Defense of Collateral  92 
  7.18  Vishay Israel  93 
  7.19  Use of Proceeds  93 
 
8.  NEGATIVE COVENANTS  93 
  8.1  Capital Structure, Business Objects or Purpose  93 
  8.2  Limitations on Fundamental Changes  94 
  8.3  Guaranties  95 
  8.4  Debt  95 
  8.5  Liens  97 
  8.6  Dividends  98 
  8.7  Investments  98 
  8.8  Accounts Receivable  100 
  8.9  Transactions with Affiliates  100 
  8.10  Intentionally Omitted  101 
  8.11  Prohibition Against Certain Restrictions  101 
  8.12  Intentionally omitted  101 
  8.13  Amendment of Subordinated Debt and Other Debt Documents and   
    Permitted Securitizations  101 
  8.14  Payment or Prepayment of Other Debts  101 
 
9.  DEFAULTS  102 
  9.1  Events of Default  102 
  9.2  Exercise of Remedies  105 
  9.3  Rights Cumulative  105 
  9.4  Waiver by Company and Permitted Borrowers of Certain Laws  105 
  9.5  Waiver of Defaults  106 
 
10.  PAYMENTS, RECOVERIES AND COLLECTIONS  106 
  10.1  Payment Procedure  106 

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  10.2       Application of Proceeds of Collateral  108 
  10.3  Pro-rata Recovery  108 
  10.4  Set Off  108 
 
11.     CHANGES IN LAW OR CIRCUMSTANCES; INCREASED COSTS  109 
  11.1  Reimbursement of Prepayment Costs  109 
  11.2  Eurocurrency Lending Office  110 
  11.3  Availability of Alternative Currency  110 
  11.4  Refunding Advances in Same Currency  110 
  11.5  Circumstances Affecting Eurocurrency-based Rate Availability  110 
  11.6  Laws Affecting Eurocurrency-based Advance Availability  111 
  11.7  Increased Cost of Eurocurrency-based Advances  111 
  11.8  Indemnity  112 
  11.9  Judgment Currency  112 
  11.10  Capital Adequacy and Other Increased Costs  113 
  11.11  Substitution of Lenders  113 
  11.12  Right of Lenders to Fund through Branches and Affiliates  114 
 
12.  AGENT  115 
  12.1  Appointment of Agent  115 
  12.2  Deposit Account with Agent or any Lender  115 
  12.3  Exculpatory Provisions  115 
  12.4  Successor Agent  116 
  12.5  Loans by Agent  116 
  12.6  Credit Decisions  116 
  12.7  Intentionally Omitted  117 
  12.8  Agent’s Fees  117 
  12.9  Nature of Agency  117 
  12.10  Authority of Agent to Enforce This Agreement  117 
  12.11  Indemnification  117 
  12.12  Knowledge of Default  118 
  12.13  Agent’s Authorization; Action by Lenders  118 
  12.14  Enforcement Actions by Agent  119 
  12.15  Collateral Matters  119 
  12.16  Syndication Agent and Documentation Agents  120 
  12.17  No Reliance on Agent’s Customer Identification Program  121 
 
13.  MISCELLANEOUS  121 
  13.1  Accounting Principles  121 
  13.2  Consent to Jurisdiction  121 
  13.3  Law of Michigan  122 
  13.4  Interest  122 
  13.5  Closing Costs; Other Costs  122 
  13.6  Notices  123 
  13.7  Further Action  124 
  13.8  Successors and Assigns; Assignments and Participations  124 
  13.9  Indulgence  128 

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        13.10        Counterparts   128  
13.11   Amendment and Waiver   128  
13.12   Taxes and Fees   130  
13.13   Confidentiality   130  
13.14   Withholding Taxes   130  
13.15   ERISA Restrictions   131  
13.16   Restatement Date   133  
13.17   Severability   133  
13.18   Table of Contents and Headings; Construction of Certain Provisions   133  
13.19   Independence of Covenants   133  
13.20   Reliance on and Survival of Various Provisions   133  
13.21   WAIVER OF JURY TRIAL   133  
13.22   Complete Agreement; Amendment and Restatements   134  
13.23   Patriot Act Notice   134  
13.24   Advertisements   134  
13.25   Electronic Transmissions   134  
 
 
[Schedules and Exhibits will be provided to the Securities and Exchange Commission, Supplementally, upon request.]  

v


FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

      THIS FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”) is made as of the 24 th day of June, 2008 by and among Lenders (as defined below), Comerica Bank, as Lead Arranger, Book Running Manager and Administrative Agent for Lenders (in its capacity as Administrative Agent, “Agent”), JPMorgan Chase Bank, N.A. as Co-Syndication Agent, Bank of America N.A. as Co-Syndication Agent, HSBC Bank USA, National Association as Documentation Agent, Vishay Intertechnology, Inc., a Delaware corporation (“Company”) and the Permitted Borrowers (as defined below and collectively with Company, the “Borrowers”) from time to time signatory hereto.

RECITALS

      A. The Borrowers have requested that Lenders amend and restate that certain Third Amended and Restated Credit Agreement dated as of April 20, 2007 (as amended the “Prior Credit Agreement”).

      B. Lenders are prepared to amend and restate the Prior Credit Agreement and to continue to extend credit to the Borrowers by amendment, restatement and renewal (but not in novation) of the Prior Credit Agreement, but only upon the terms and conditions set forth in this Agreement.

      NOW THEREFORE, BORROWERS, AGENT, AND LENDERS AGREE:

      1. DEFINITIONS

      1.1 Certain Defined Terms . For the purposes of this Agreement the following terms will have the following meanings:

      “Account Party(ies)” shall mean, with respect to any Letter of Credit, the account party or parties (which shall be any Borrower and/or any Significant Subsidiary which is not a Permitted Borrower hereunder jointly and severally with Company) as named in an application to Agent for the issuance of such Letter of Credit.

      “Advance(s)” shall mean, as the context may indicate, a Revolving Credit Advance, a Term Loan Advance or a Swing Line Advance (including without limitation any readvance, refunding or conversion of such Revolving Credit Advance, Term Loan Advance or Swing Line Advance pursuant to Sections 2.3, 2.5(c) or 4.4 hereof) and any advance in respect of a Letter of Credit under Section 3.6 hereof (including without limitation the unreimbursed amount of any draws under Letters of Credit) and shall include, as applicable, each Eurocurrency-based Advance, Quoted Rate Advance and Prime-based Advance. For the avoidance of doubt, Advances hereunder shall include all borrowings under the Prior Credit Agreement and still outstanding as of the Restatement Date.

      “Affected Lender” shall have the meaning set forth in Section 11.11 hereof.


      “Affiliate” shall mean, with respect to any Person, any other Person or group acting in concert in respect of the first Person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with such first Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any Person or group of Persons, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management and policies of such Person, whether through the ownership of voting securities or by contract or otherwise. Unless otherwise indicated, or the context otherwise requires, “Affiliates” as used herein shall mean Affiliates of Company.

      “Agent” shall mean Comerica Bank, a Texas banking association, acting as administrative agent hereunder, or any successor administrative agent appointed in accordance with Section 12.4 hereof.

      “Agent’s Correspondent” shall mean for Advances in eurodollars, Agent’s Grand Cayman Branch (or for the account of said branch office, at Agent’s main office in Detroit, Michigan, United States); for Advances in other Alternative Currencies, at such bank or banks as Agent may from time to time designate by written notice to the Borrowers and Lenders.

      “Agent’s Fees” shall mean those fees and expenses required to be paid by Company to Agent under Section 12.8 hereof.

      “Alternate Base Rate” shall mean, for any day, an interest rate per annum equal to the Federal Funds Effective Rate in effect on such day, plus one percent (1%).

      “Alternative Currency” shall mean Japanese Yen (“¥”), British Pounds Sterling (“Sterling”) and the Euro, and, subject to availability and to the terms and conditions of this Agreement, such other freely convertible foreign currencies, as requested by any of Borrowers and acceptable to Agent and Lenders, in their reasonable discretion.

      “Applicable Fee Percentage” shall mean, as of any date of determination thereof, the applicable percentage used to calculate certain of the fees due and payable hereunder, determined by reference to the appropriate columns in the Pricing Matrix attached to this Agreement as Schedule 4.1.

      “Applicable Interest Rate” shall mean the Eurocurrency-based Rate, the Prime-based Rate or, with respect to Swing Line Advances, the Quoted Rate, as selected by a Borrower from time to time subject to the terms and conditions of this Agreement.

      “Applicable Margin” shall mean, as of any date of determination thereof, the applicable interest rate margin, determined by reference to the appropriate columns in the Pricing Matrix attached to this Agreement as Schedule 4.1.

      “Asset Sale” shall mean the sale, transfer or other disposition by any Borrower or any of their Subsidiaries of any asset to any Person (other than to a Borrower or a Guarantor).

      “Assignment Agreement” shall have the meaning ascribed to such term in Section 13.8(c) hereof.

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      “Authorized Officer” shall mean the Chairman, any Vice Chairman, President, Treasurer, CFO, or the Corporate Controller of Company or any applicable Subsidiary, as the case may be, or any person otherwise designated by Company or such Subsidiary, as the case may be, as having the authority to act for Company or such Subsidiary in the particular instance.

      “BCc Replacement Financing” shall mean the debt in the aggregate amount of $105,000,000 issued by Company to refinance certain mezzanine debt issued by BCcomponents Holdings B.V., a Dutch private limited liability company.

      “Borrowers” is defined in the preamble.

      “Business Day” shall mean any day on which commercial banks are open for domestic and international business (including dealings in foreign exchange) in Detroit, London and New York, and if funds are to be paid or made available in any Alternative Currency, on such day in the place where such funds are to be paid or made available and, if the applicable Business Day relates to the borrowing or payment of a Eurocurrency-based Advance denominated in Euros, on which banks and foreign exchange markets are open for business in the city where disbursements of or payments on such Advance are to be made which is a Trans-European Business Day.

      “Capital Expenditures” shall mean, without duplication, any amounts paid or accrued for a period in respect of any purchase or other acquisition for value of fixed or capital assets, net of the cash proceeds of any grant (but exclusive of any related debt issuance or other borrowing) received during such period by Company or any of its Subsidiaries from any governmental authority, up to the aggregate amount of capital additions in the relevant jurisdiction in which such grant was received during such period; provided that, in no event shall Capital Expenditures include amounts expended in respect of normal repair and maintenance of plant facilities, machinery, fixtures and other like capital assets utilized in the ordinary conduct of business (to the extent such amounts would not be capitalized in preparing a balance sheet determined in accordance with GAAP).

      “Collateral” shall mean all property or rights in which a security interest, mortgage, Lien or other encumbrance for the benefit of Lenders is or has been granted or arises or has arisen, under or in connection with this Agreement, the other Loan Documents, or otherwise.

      “Collateral Documents” shall mean the Pledge Agreements, and any related documents, including but not limited to that certain Reaffirmation of Domestic Pledge Agreements, in each case as may be amended, restated or otherwise modified from time to time.

      “Commodities Hedging Obligation(s)” shall mean any precious metal commodity swap agreement, forward purchase agreement, cap agreement or collar agreement, and any other agreement or arrangement entered into for protection against fluctuations in precious metal prices, and, except as used in the definition of “Indebtedness,” not for speculative purposes.

      “Company” is defined in the Preamble.

      “Consolidated” or “Consolidating” shall, when used with reference to any financial information pertaining to (or when used as a part of any defined term or statement pertaining to the financial condition of) Company and its Subsidiaries mean the accounts of Company and its

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Subsidiaries determined on a consolidated or consolidating basis, as the case may be, all determined as to principles of consolidation and, except as otherwise specifically required by the definition of such term or by such statements, as to such accounts, in accordance with GAAP, applied on a consistent basis and consistent with the financial statements as at and for the fiscal year ended December 31, 2006.

      “Consolidated EBITDA” shall mean the EBITDA of Company and its Subsidiaries on a Consolidated basis.

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

      “Covenant Compliance Report” shall mean the report to be furnished by Company to Agent, substantially in the form attached hereto as Exhibit D, as such exhibit may be amended or otherwise modified from time to time by the Required Lenders, and certified by the chief financial officer of Company pursuant to Section 7.3(c) hereof, for the purpose of monitoring the Borrowers’ compliance herewith and to notify Lenders of the acquisition or creation of new Subsidiaries.

      “Current Dollar Equivalent” shall mean, as of any applicable date of determination, with respect to any Advance or Letter of Credit made, issued or carried in an Alternative Currency, the amount of Dollars which is equivalent to the then outstanding principal amount of such Advance or Letter of Credit at the most favorable spot exchange rate determined by Agent to be available to it for the sale of Dollars for such Alternative Currency for delivery at approximately 11:00 A.M. (Detroit time) two (2) Business Days after such date. Alternative Currency equivalents of Advances in Dollars (to the extent used herein) shall be determined by Agent in a manner consistent herewith.

      “Debt” shall mean, as of any applicable date of determination, all items of indebtedness, obligation or liability of a Person, whether matured or unmatured, liquidated or unliquidated, direct or indirect, absolute or contingent, joint or several, that should be classified as liabilities on a balance sheet and/or in accompanying footnotes in accordance with GAAP, including any contingent obligations resulting from the sale or transfer of assets.

      “Default” shall mean any event which, with the giving of notice or the passage of time, or both, would constitute an Event of Default.

      “Dollar Amount” shall mean (i) with respect to each Advance or Letter of Credit made, issued or carried (or to be made, issued or carried) in Dollars, the principal amount thereof and (ii) with respect to each Advance or Letter of Credit made, issued or carried (or to be made or carried) in an Alternative Currency, the amount of Dollars which is equivalent to the principal amount of such Advance or Letter of Credit at the most favorable spot exchange rate determined by Agent to be available to it for the sale of Dollars for such Alternative Currency at approximately 11:00 A.M. (Detroit time) two (2) Business Days before such Advance or Letter of Credit is made or issued (or to be made or issued), as such Dollar Amount may be adjusted from time to time pursuant to Section 2.11 hereof. When used with respect to any Alternative

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Currency portion of an Advance or Letter of Credit being repaid or remaining outstanding at any time or with respect to any other sum expressed in an Alternative Currency, “Dollar Amount” shall mean the amount of Dollars which is equivalent to the principal amount of such Advance or Letter of Credit, or the amount so expressed in such Alternative Currency, at the most favorable spot exchange rate determined by Agent to be available to it for the sale of Dollars for such Alternative Currency at the relevant time. Alternative Currency amounts of Advances made, carried or expressed in Dollars (to the extent used herein) shall be determined by Agent in a manner consistent herewith.

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

      “Domestic Advance” shall mean any Advance other than a Eurocurrency-based Advance or any other Advance denominated in an Alternative Currency.

      “Domestic Guaranty” shall mean that certain Third Amended and Restated Domestic Guaranty dated as of the Restatement Date delivered to Agent covering all Indebtedness outstanding of the Borrowers executed and delivered as of the date hereof (or to be executed and delivered by joinder) by Company and each of the Significant Domestic Subsidiaries, as amended, restated or otherwise modified from time to time.

      “Domestic Permitted Borrower” shall mean any Permitted Borrower which is a Domestic Subsidiary.

      “Domestic Subsidiary” shall mean any Subsidiary of Company incorporated or organized under the laws of the United States of America, or any state or other political subdivision thereof or which is considered to be a “disregarded entity” for United States federal income tax purposes and which is not a “controlled foreign corporation” as defined under Section 957 of the Internal Revenue Code, in each case provided such Subsidiary is owned by Company or a Domestic Subsidiary of Company, and “Domestic Subsidiaries” shall mean any or all of them.

      “E-System” shall mean any electronic system and any other internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Agent, any of its Affiliates or any other Person, providing for access to data protected by passcodes or other security system.

      “EBITDA” shall mean, of any Person, for any period, the Net Income of such Person for such period adjusted (A) to include, if applicable, the Net Income of any Person accrued during such period but prior to the date it became a Subsidiary of Company or was merged into or consolidated with Company (based on financial information reasonably satisfactory to Agent), and (B) to exclude, without duplication, the following items of income or expense to the extent that such items are included in the calculation of such Net Income: (a) Interest Expense, (b) any non-cash expenses and charges, (c) total income tax expense, (d) depreciation expense, (e) the expense associated with amortization of intangible and other assets, (f) non-cash provisions for reserves for discontinued operations, (g) any extraordinary, unusual or non-recurring gains or losses or charges or credits, (h) any gain or loss associated with the sale or write-down of assets, (i) any gain or loss from or attributable to minority interests and (j) any gain or loss accounted for by the equity method of accounting (except in the case of income to the extent of the amount

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of cash dividends or cash distributions paid to such Person or any Subsidiary of such Person by the entity accounted for by the equity method of accounting).

      “Effective Date” shall mean April 20, 2007.

      “Electronic Transmission” shall mean each document, instruction, authorization, file, information and any other communication transmitted, posted or otherwise made or communicated by e-mail or e-fax or otherwise to or from an e-system or other equivalent service.

      “EMU” shall mean Economic and Monetary Union as contemplated in the Treaty on European Union.

      “EMU Legislation” shall mean legislative measures of the European Council (including European Council regulations) for the introduction of, changeover to or operation of a single or unified European currency (whether known as the Euro or otherwise), being in part the implementation of the third stage of EMU.

      “Environmental Auditors” shall mean, when selected or retained by Company or Agent, as the case may be hereunder, such counsel, engineering or testing firms or other experienced, reputable environmental consultants reasonably acceptable to the Required Lenders.

      “Equity Interest” shall mean (i) in the case of any corporation, all capital stock and any securities exchangeable for or convertible into capital stock, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents of corporate stock (however designated) in or to such association or entity, (iii) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited) and (iv) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distribution of assets of, the issuing Person, and including, in all of the foregoing cases described in clauses (i), (ii), (iii) or (iv), any warrants, rights or other options to purchase or otherwise acquire any of the interests described in any of the foregoing cases.

      “Equity Offering” shall mean the issuance and sale for cash, on or after the date hereof, by Company or any of its Subsidiaries of additional Equity Interests.

      “Equity Offering Adjustment” shall mean that amount to be added to the minimum Tangible Net Worth required to be maintained under Section 7.4 hereof consisting of an amount equal to seventy-five percent (75%) of each Equity Offering conducted by Company or any of its Subsidiaries, net of costs of issuance, on and after December 31, 2006, on a cumulative basis; provided, however, that in the case of each Equity Offering by a Subsidiary, the amount of the Equity Offering Adjustment shall not exceed 75% of the amount, if any, by which such Equity Offering increases Tangible Net Worth.

      “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, or any successor act or code, and the regulations in effect from time to time thereunder.

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      “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) which is under common control with Company within the meaning of Section 4001 of ERISA or is part of a group which includes Company and would be treated as a single employer under Section 414 of the Internal Revenue Code.

      “Euro” or “Euro Unit” shall mean the currency unit of the Euro as defined in the EMU Legislation.

      “Eurocurrency Rate” shall mean with respect to each Eurocurrency-based Advance carried in any Alternative Currency (and each Eurocurrency-Interest Period pertaining thereto) the per annum interest rate determined by Agent (or, in case of Swing Line Advances, Swing Line Lender) to be the offered rate for deposits in such currency with a term comparable to such Interest Period that appears on the applicable Reuters Screen Libor Page or the applicable British Bankers’ Association rate as reported by any generally recognized financial information service, in each case as reported at approximately 11:00 a.m., London time, two Business Days (or, in the case of a Eurocurrency-based Advance in Euros, on such other date as is customary in the relevant offshore interbank market) prior to the beginning of such Interest Period; provided, however, that if at any time for any reason such offered rate for any such currency does not appear on a Reuters Screen Libor Page or is not reported by any generally recognized financial information service, “Eurocurrency Rate” shall mean, with respect to each such Advance denominated in such currency, the per annum interest rate at which deposits in the relevant currency are offered to Agent’s Eurocurrency Lending Office (or, in the case of Swing Line Advances, Swing Line Lender’s Eurocurrency Lending Office) by other prime banks in the relevant offshore interbank market in an amount comparable to the relevant Eurocurrency-based Advance and for a period equal to the relevant Eurocurrency-Interest Period at approximately 11:00 a.m. Detroit time two (2) Business Days prior to the first day of such Eurocurrency-Interest Period.

      “Eurocurrency-based Advance” shall mean any Advance (including a Swing Line Advance) which bears interest at the Eurocurrency-based Rate.

      “Eurocurrency-based Rate” shall mean a per annum interest rate which is equal to the sum of the Applicable Margin (subject, if applicable, to adjustment under Section 4A.1 hereof), plus the quotient of:

                

(A) 

(a) in the case of Eurocurrency-based Advances carried in Dollars, the Eurodollar Rate, or

(b) in the case of Eurocurrency-based Advances carried in an Alternative Currency, the Eurocurrency Rate,

divided by

     

(B)   a percentage equal to 100% minus the maximum rate on such date at which Agent is required to maintain reserves on ‘Eurocurrency Liabilities’ as defined in and pursuant to Regulation D of the Board of Governors of the Federal Reserve System or, if such regulation or definition is modified, and as long as Agent is required to maintain reserves against a category of liabilities which

7



                

includes eurocurrency deposits or includes a category of assets which includes eurocurrency loans, the rate at which such reserves are required to be maintained on such category,

all as conclusively determined by Agent (absent manifest error), such sum to be rounded upward, if necessary, to the nearest whole multiple of 1/100th of 1%.

      “Eurocurrency-Interest Period” shall mean, (a) for Swing Line Advances carried at the Eurocurrency-based Rate, an interest period of fourteen (14) days or one month (or any lesser number of days agreed to in advance by a Borrower, Agent and Swing Line Lender) and (b) for all other Eurocurrency-based Advances, an interest period of one, two, three or six months (or any lesser or greater number of days agreed to in advance by a Borrower together with Agent and Lenders) as selected by such Borrower, as applicable, for a Eurocurrency-based Advance pursuant to Section 2.3 or 2.5 hereof, as the case may be.

      “Eurocurrency Lending Office” shall mean, (a) with respect to Agent, Agent’s office located at its Grand Caymans Branch or such other branch of Agent, domestic or foreign, as it may hereafter designate as its Eurocurrency Lending Office by written notice to Company and Lenders and (b) as to each of Lenders, its office, branch or affiliate located at its address set forth on the signature pages hereof (or identified thereon as its Eurocurrency Lending Office), or at such other office, branch or affiliate of such Lender as it may hereafter designate as its Eurocurrency Lending Office by written notice to Company and Agent.

      “Eurodollar Rate” shall mean with respect to each Eurocurrency-based Advance carried in Dollars (and each Eurocurrency-Interest Period pertaining thereto) the per annum interest rate at which deposits in dollars are offered to Agent’s Eurocurrency Lending Office (or, in the case of Swing Line Advances, Swing Line Lender’s Eurocurrency Lending Office) by other prime banks in the eurocurrency market in an amount comparable to the relevant Eurocurrency-based Advance and for a period equal to the relevant Eurocurrency-Interest Period at approximately 11:00 a.m. Detroit time two (2) Business Days prior to the first day of such Eurocurrency-Interest Period.

      “Event of Default” shall mean any of the events specified in Section 9.1 hereof.

      “Existing Letter of Credit” shall mean each letter of credit issued under the Prior Credit Agreement, if any, which is outstanding on the Restatement Date, as set forth on Schedule 1.4 hereto.

      “Federal Funds Effective Rate” shall mean, for any day, a fluctuating interest rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Agent from three Federal funds brokers of recognized standing selected by it.

      “Fee Letter” shall mean the fee letter dated May 16, 2008 between Company and Agent hereunder, as amended, restated or otherwise modified from time to time.

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      “Fees” shall mean Agent’s Fees, the Revolving Credit Facility Fee, the Letter of Credit Fees, and the other fees and charges payable hereunder.

      “Fixed Charge Coverage Ratio” shall mean, with respect to Company and its Consolidated Subsidiaries, as of any date of determination, a ratio, (i) the numerator of which shall be equal to Consolidated EBITDA for the preceding four fiscal quarters ending on the date of determination, minus Capital Expenditures during such period and (ii) the denominator of which shall be the sum of regularly scheduled principal payments and Interest Expense of Company and its Consolidated Subsidiaries for such period, in each case determined in accordance with GAAP.

      “Foreign Guaranty” shall mean that certain Second Amended and Restated Foreign Guaranty dated August 31, 2007 covering all Indebtedness of the Foreign Permitted Borrowers hereunder (but expressly excluding any Hedging Obligations) executed and delivered whether by joinder or otherwise (or to be executed and delivered by joinder) by the Significant Foreign Subsidiaries, together with any other guaranty executed and delivered by a Significant Foreign Subsidiary, in each case as amended, restated or otherwise modified from time to time.

      “Foreign Permitted Borrower” shall mean any Permitted Borrower hereunder which is a Foreign Subsidiary of Company.

      “Foreign Subsidiary” shall mean any of Company’s Subsidiaries, other than a Domestic Subsidiary; and “Foreign Subsidiaries” shall mean any or all of them.

      “GAAP” shall mean generally accepted accounting principles in the United States of America, as in effect from time to time, consistently applied.

      “Governmental Obligations” means noncallable direct general obligations of the United States of America or obligations the payment of principal of and interest on which is unconditionally guaranteed by the United States of America.

      “Granting Lender” shall mean a Lender which elects to grant to an SPFV the option to fund all or any part of any Advance that such Lender would otherwise be obligated to fund pursuant to this Agreement, in each case in accordance with Section 13.8(c) hereof; provided, however, that notwithstanding the funding by an SPFV of an Advance (or a portion thereof) hereunder, the Granting Lender shall retain all of its rights and obligations under this Agreement with respect to such Advance or otherwise.

      “Guarantee Obligation” shall mean as to any Person (the “guaranteeing person”) any obligation of the guaranteeing person in respect of any obligation of another Person (including, without limitation, any bank under any letter of credit), the creation of which was induced by a reimbursement agreement, guaranty agreement, keepwell agreement, purchase agreement, or similar obligation issued by the guaranteeing person, in either case guaranteeing or in effect guaranteeing any Debt, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any

9


such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by Company or Subsidiary, as applicable, in good faith.

      “Guaranties” shall mean the Domestic Guaranty and the Foreign Guaranty, and any other guaranty entered into in relation to the Indebtedness or any portion thereof, whether by joinder or otherwise, in each case as the same may be amended, restated or otherwise modified from time to time, and “Guaranty” shall mean any or all of them.

      “Guarantor(s)” shall mean each Person which shall have executed and delivered a Guaranty or a Joinder Agreement thereto.

      “Hazardous Material” shall mean and include any hazardous, toxic or dangerous waste, substance or material defined as such in (or for purposes of) the Hazardous Material Laws.

      “Hazardous Material Law(s)” shall mean all laws, codes, ordinances, rules, regulations, orders, decrees and directives issued by any federal, state, provincial, local, foreign or other governmental or quasi-governmental authority or body (or any agency, instrumentality or political subdivision thereof) pertaining to Hazardous Material on or about any facilities owned, leased or operated by Company or any of its Subsidiaries, or any portion thereof including, without limitation, those relating to soil, surface, subsurface ground water conditions and the condition of the ambient air; and any state and local laws and regulations pertaining to Hazardous Material and/or asbestos; any so-called “superfund” or “superlien” law; and any other federal, state, provincial, foreign or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material, as now or at any time prior to the payment in full of all Indebtedness and the termination in full of any obligations of the Lenders to extend Advances hereunder.

      “Hedging Obligation(s)” shall mean Interest Rate Protection Agreements and any foreign currency exchange agreements (including without limitation foreign currency hedges and swaps) or other foreign exchange transactions, or any combination of such transactions or agreements or any option with respect to any such transactions or agreements entered into between Company and/or any of its Subsidiaries and a Lender or an Affiliate of a Lender to manage existing or anticipated foreign exchange risk and not for speculative purposes, provided, that, for purposes

10


of the Collateral Documents and the Foreign Guaranty, “Hedging Obligations” shall also include the Commodities Hedging Obligations to the extent such Commodities Hedging Obligations are “Indebtedness” as defined in this Agreement.

      “Hereof”, “hereto”, “hereunder” and similar terms shall refer to this Agreement in its entirety and not to any particular paragraph or provision of this Agreement.

      “Indebtedness” shall mean (a) all indebtedness and liabilities including without limitation principal, interest (including without limitation interest accruing at the then-applicable rate provided in this Agreement or any other applicable Loan Document after an applicable maturity date and interest accruing at the then-applicable rate provided in this Agreement or any other applicable Loan Document after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding relating to the Company and/or any of its Subsidiaries, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), fees, expenses and other charges arising under this Agreement or any of the other Loan Documents, whether direct or indirect, absolute or contingent, owing by any of the Borrowers to Lenders (or any of them) or to Agent, in any manner and at any time, under this Agreement or the Loan Documents, due or hereafter to become due, now owing or that may hereafter be incurred by any of the Borrowers or any of the Subsidiaries to, or acquired by, Lenders (or any of them) or by Agent, (b) any Special Letters of Credit, (c) net obligations with respect to (i) Hedging Obligations and (ii) Commodities Hedging Obligations, provided that (x) the maximum aggregate amount which shall be available from proceeds of the Collateral under the Collateral Documents or from any other sums collected from the Borrowers or any of Company’s Subsidiaries pursuant to the Loan Documents (excluding the Loan Documents specifically governing the Commodities Hedging Obligations) for application against Commodities Hedging Obligations shall not exceed $10,000,000 (with the application of such proceeds to be made by Agent on a basis consistent with Section 10.2 hereof, such application to be made on a pro rata basis among the eligible hedging providers under those Commodities Hedging Obligations designated by Company pursuant to clause (y) of this definition, but otherwise in Agent’s sole discretion), (y) the documentation relating to such Commodities Hedging Obligations, including a letter agreement between the hedging provider and Company or applicable Subsidiary covering multiple commodities hedging transactions (I) specifies that such obligations have been designated by Company as (and, subject to the terms hereof, shall constitute) “Indebtedness” hereunder and (II) contains an express acknowledgment by the eligible hedging provider (satisfactory in form and substance to Agent) of the limitation imposed on all Commodities Hedging Obligations under clause (x) of this definition, and (z) copies of such documentation shall have been provided to Agent promptly following the execution thereof, accompanied by an updated list of all such documents having been so designated by Company (which Agent is hereby authorized to furnish to any hedging provider requesting such documentation), provided further that both the Commodities Hedging Obligations and the Hedging Obligations are entered into between Company and/or any of its Subsidiaries and a Lender or an Affiliate of a Lender, (d) any judgments that may hereafter be rendered on such indebtedness or any part thereof, with interest according to the rates and terms specified, or as provided by law, (e) solely to the extent this term is used in any Pledge Agreement, Guaranty or other document guarantying or pledging Collateral in support of the obligations of any of the Borrowers hereunder and as “Indebtedness” is used in Section 10.2 hereof, any liabilities to Agent or any Lender arising in connection with any Lender Products, and (f) any and all

11


consolidations, amendments, renewals, replacements or extensions of any of the foregoing. For the purposes of Section 9.2(b), “Indebtedness” shall exclude any Hedging Obligations or Commodities Hedging Obligations.

      “Intercompany Loan” shall mean any loan (or advance in the nature of a loan) by Company or any Subsidiary of Company to Company or any Subsidiary of Company.

      “Intercompany Loans, Advances or Investments” shall mean any Intercompany Loan, any advance, any Investment (including, without limitation, any Guaranty Obligations of any indebtedness or lease obligations of Company or any Subsidiary to a third party) made by Company or any Subsidiary to, in or for the benefit of, as applicable, Company or any Subsidiary.

      “Intercompany Notes” shall mean the promissory notes issued or to be issued by any Subsidiary to Company or to any Significant Domestic Subsidiary to evidence an Intercompany Loan, substantially in the form attached hereto as Exhibit I.

      “Interest Expense” shall mean, for any Person and with respect to any period, the sum of the amount of interest paid or accrued in respect of such period, determined in accordance with GAAP.

      “Interest Period” shall mean (a) with respect to a Eurocurrency-based Advance, a Eurocurrency-Interest Period commencing on the day a Eurocurrency-based Advance is made, or on the effective date of an election of the Eurocurrency-based Rate made under Section 2.3 hereof, as the case may be, and (b) with respect to a Swing Line Advance carried at the Quoted Rate, an interest period of one month (or any lesser number of days agreed to in advance by any Borrower, Agent and Swing Line Lender); provided, however that (i) any Interest Period which would otherwise end on a day which is not a Business Day shall end on the next succeeding Business Day, except that as to a Eurocurrency-Interest Period, if the next succeeding Business Day falls in another calendar month, such Eurocurrency-Interest Period shall end on the next preceding Business Day, and (ii) when a Eurocurrency-Interest Period begins on a day which has no numerically corresponding day in the calendar month during which such Eurocurrency-Interest Period is to end, it shall end on the last Business Day of such calendar month, and (iii) no Interest Period in respect of any Advance shall extend beyond the Revolving Credit Maturity Date or the Term Loan Maturity Date, as applicable.

      “Interest Rate Protection Agreement(s)” shall mean any interest rate, swap, cap, floor, collar, forward rate agreement or other rate protection transaction, or any combination of such transactions or agreements or any option with respect to any such transactions or agreements now existing or hereafter entered into by Company or any of its Subsidiaries to manage existing or anticipated interest rate risk and not for speculative purposes.

      “Internal Revenue Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated thereunder.

      “Investment” shall mean any investment, loan or advance by Company or any of its Subsidiaries to, or any other loan, advance or investment (including without limitation any Guarantee Obligation) by Company or any of its Subsidiaries in, to or for the benefit of any

12


Person (including without limitation, Company or any Subsidiary), without offset, reduction or other adjustment, whether such loan, advance or investment shall be in the nature of an investment in Equity Interests, evidences of indebtedness, Guarantee Obligations or otherwise.

      “Israeli Subsidiary(ies)” shall mean any Subsidiary of the Company (including Vishay Israel), whether direct or indirect, incorporated under the laws of Israel.

      “Issuing Lender” shall mean Comerica Bank, or any successor thereto.

      “Issuing Office” shall mean Agent’s office located at One Detroit Center, 500 Woodward Avenue, Detroit, Michigan 48275 or such other office as Agent shall designate in writing as its Issuing Office.

      “Joinder Agreement” shall mean a joinder agreement in the form attached as Exhibit A to the form of the Domestic Guaranty or to the form of the Foreign Guaranty, to be executed and delivered by any Person required to be a Guarantor pursuant to Section 7.16 of this Agreement.

      “Joint Venture” shall mean any corporation, partnership, association, joint stock company, limited liability company, partnership, business trust or other combined enterprise, other than a Subsidiary, in which (or to which) Company or any of its Subsidiaries has made a loan, investment or advance or has an ownership stake or interest, whether in the nature of Share Capital or otherwise (but expressly excluding Permitted Investments) to fund a business enterprise.

      “Lender(s)” shall mean each of the Lenders signatory to this Agreement and any assignee which becomes a Lender pursuant to Section 13.8(c) hereof, and shall include, as applicable, Swing Line Lender.

      “Lender Products” shall mean any one or more of the following types of services or facilities extended to Company or any of its Subsidiaries by any Lender: (i) credit cards, (ii) credit card processing services, (iii) debit cards, (iv) purchase cards, (v) Automated Clearing House (ACH) transactions, (vi) cash management, including controlled disbursement services, and (vii) establishing and maintaining deposit accounts.

      “Letter(s) of Credit” shall mean any standby letters of credit issued by Agent at the request of or for the account of an Account Party or Account Parties pursuant to Article 3 hereof, including, without limitation, any Existing Letters of Credit.

      “Letter of Credit Agreement” shall mean, in respect of each Letter of Credit, the application and related documentation satisfactory to Agent of an Account Party or Account Parties requesting Agent to issue such Letter of Credit, as amended from time to time.

      “Letter of Credit Fees” shall mean the fees payable to Agent for the accounts of Lenders in connection with Letters of Credit pursuant to Section 3.4 hereof.

      “Letter of Credit Maximum Amount” shall mean, as of any date of determination, the lesser of: (a) Seventy Five Million Dollars ($75,000,000) and (b) the Revolving Credit Aggregate Commitment as of such date, minus the aggregate principal amount of Advances

13


outstanding as of such date under the Revolving Credit and under the Swing Line, minus, in each case the Letter of Credit Reserve in effect on such date.

      “Letter of Credit Obligations” shall mean at any date of determination, the sum of (a) the aggregate undrawn amount of all Letters of Credit then outstanding, and (b) the aggregate amount of Reimbursement Obligations which remain unpaid as of such date.

      “Letter of Credit Payment” shall mean any amount paid or required to be paid by Agent in its capacity hereunder as issuer of a Letter of Credit as a result of a draft or other demand for payment under any Letter of Credit.

      “Letter of Credit Reserve” shall mean Five Million Dollars ($5,000,000), as decreased by Company with Agent’s approval.

      “Leverage Ratio” shall mean, as of any date of determination, with respect to Company and its Consolidated Subsidiaries, the ratio of (a) Total Debt as of such date to (b) Consolidated EBITDA for the four consecutive fiscal quarters then ending.

      “Lien” shall mean any pledge, assignment, hypothecation, mortgage, security interest, deposit arrangement, option, trust receipt, conditional sale or title retaining contract, sale and leaseback transaction, or any other type of Lien, charge or encumbrance, whether based on common law, statute or contract.

      “Loan Documents” shall mean collectively, this Agreement, the Letter of Credit Agreements, the Guaranties, the Collateral Documents, agreements relating to Hedging Obligations entered into between Company and/or any of its Subsidiaries and a Lender or an Affiliate of a Lender, agreements relating to Commodities Hedging Obligations (to the extent such Commodities Hedging Obligations are “Indebtedness” as defined in this Agreement), and any other documents, instruments or agreements executed pursuant to or in connection with any such document, the Indebtedness or this Agreement as such documents may be amended or otherwise modified from time to time. For the purposes of Section 13.11, “Loan Documents” shall exclude any Hedging Obligations and Commodities Hedging Obligations.

      “Moody’s” means Moody’s Investors Service, Inc., its successors and assigns, and, if such organization shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized securities rating agency designated by Agent.

      “Multiemployer Plan” shall mean any multiemployer plan within the meaning of Section 4001(a)(3) of ERISA.

      “National Currency Unit” shall mean a fraction or multiple of one Euro Unit expressed in units of the former national currency of a Participating Member State.

      “Net Cash Proceeds” shall mean the aggregate cash payments received by any Borrower or any of their respective Subsidiaries from any Asset Sale, the issuance of Equity Interests or the issuance of Subordinated Debt, as the case may be, net of the ordinary and customary direct costs incurred in connection with such sale or issuance, as the case may be, such as legal,

14


accounting and investment banking fees, sales commissions, and other third party charges, and net of property taxes, transfer taxes and any other taxes paid or payable by such Person in respect of any sale or issuance.

      “Net Income” shall mean the net income (or loss) of a Person for any period determined in accordance with GAAP.

      “Net Income Adjustment” shall mean that amount to be added to the minimum Tangible Net Worth required to be maintained under Section 7.4 hereof consisting of fifty percent (50%) of Company’s Consolidated Net Income for each of Company’s fiscal quarters ending on or after March 31, 2007 (in each case, only if a positive number), on a cumulative basis.

      “New Convertible Subordinated Debt” means that certain new convertible subordinated Debt of Company in the amount of up to $500,000,000 issued by Company under an Indenture dated as of August 6, 2003 between Company and Wachovia Bank, National Association, as Trustee on substantially the terms and conditions contained in Company’s Offering Memorandum relating to such debt dated July 31, 2003.

      “Notes” shall mean the Revolving Credit Notes, the Swing Line Notes and the Term Loan Notes.

      “Participating Member State” shall mean such country so described in any EMU Legislation.

      “PBGC” shall mean the Pension Benefit Guaranty Corporation under ERISA, or any successor corporation.

      “Pension Plan” shall mean each employee pension benefit plan, as defined in Section 3(2) of ERISA, of Company or an ERISA Affiliate but only to the extent such Pension Plan is subject to ERISA, as provided in Section 4 of ERISA, and is subject to Section 412 of the Internal Revenue Code and Section 302 of ERISA other than a Multiemployer Plan.

      “Percentage” shall mean, as applicable, the Revolving Credit Percentage, the Term Loan Percentage or the Weighted Percentage.

      “Permitted Acquisition” shall mean any acquisition by Company or any of its Subsidiaries of assets, businesses or business interests or Equity Interests in any Person (whether such acquisition is consummated by purchase or merger, provided that the Company or the applicable Subsidiary is the survivor of such merger), conducted while no Default or Event of Default has occurred and is continuing hereunder (both before and after giving effect thereto) in accordance with the following requirements:

 

     

(a)
          

Such acquisition is of a business or Person primarily engaged in a line of business in which Company or any Subsidiary is permitted to engage under Section 8.1(b) hereof;

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      (b)
          
The board of directors (or other Person(s) exercising similar functions) of the seller of the assets or issuer of the Equity Interests being acquired shall have approved such transaction or recommended that such transaction be approved;
 
(c) in the event that the value of such proposed new acquisition, computed on the basis of total acquisition consideration paid or incurred, or to be paid or incurred, by Company or its Subsidiaries with respect thereto, including all indebtedness which is assumed or to which such assets, businesses or business or ownership interests or shares, or any Person so acquired, is subject, but excluding the value of any common shares of the Company transferred as a part of such acquisition, shall be
 
  (i)
          
greater than or equal to Fifty Million Dollars ($50,000,000), determined as of the date of such acquisition, then not less than fifteen (15) nor more than ninety (90) days prior to the date each such proposed acquisition is scheduled to be consummated, Company provides written notice thereof to Agent, accompanied by (A) the term sheet, purchase agreement and, when available, drafts of all material documents pertaining to such proposed acquisition, (B) historical financial information (including, but not limited to, income statements, balance sheets and cash flows) covering either the three most recent complete fiscal years of the acquisition target prior to the effective date of the acquisition or the entire credit history of the acquisition target, whichever period is shorter, and the quarterly financial statements of the acquisition target for the most recent eight consecutive fiscal quarters (provided however that, if the financial information referred to in this subparagraph (B) is not available, Company shall furnish Agent with financial information otherwise reasonably satisfactory to the Required Lenders) and (C) Pro Forma Projected Financial Information, or
 
  (ii) less than Fifty Million Dollars ($50,000,000) but greater than or equal to Ten Million Dollars ($10,000,000), then not less than ten (10) Business Days after date each such proposed acquisition has been consummated, Company provides written notice thereof to Agent (with certified copies of all material documents pertaining to such acquisition);

whereupon Agent shall promptly upon its receipt thereof distribute copies of all notices and other materials received from Company under this clause (c) to each Lender; and

      (d)
          
within thirty (30) days after any such acquisition has been completed, Company, its Subsidiaries and any of the other business entities involved in such acquisition shall execute or cause to be executed, and provide or cause to be provided to Agent, any Loan Documents required under Section 7.16 hereof.

      “Permitted Borrower Addendum” shall mean an addendum substantially in the form attached hereto as Exhibit H, to be executed and delivered by each Permitted Borrower which

16


becomes a party to this Agreement after the date hereof, as such Exhibit may be amended from time to time.

      “Permitted Borrower Sublimit” shall mean the maximum aggregate amount of Advances and Letters of Credit (including Letter of Credit Obligations) available at any time to each of the Permitted Borrowers hereunder, as set forth on Schedule 1.6 hereof.

      “Permitted Borrower(s)” shall mean Vishay Europe, Vishay Electronic, Vishay Asia, Siliconix, Siliconix Technology and Vishay India (subject, in each case, to prior compliance in full with the requirements of Section 2.1 hereof and in the case of Vishay India, with appropriate changes in local law and regulation which would make the extension of credit to Vishay India on the terms set forth herein compliant with such local law and regulation), and any Wholly Owned Subsidiary of Company which, after the Restatement Date and with the prior written approval of Lenders, becomes a party hereto pursuant to the requirements of Section 2.1 hereof.

      “Permitted Currencies” shall mean Dollars or any Alternative Currency.

      “Permitted Liens” shall mean, with respect to any Person:

      (a) Liens for taxes not yet due and payable or which are being contested in good faith by appropriate proceedings diligently pursued, provided that such provision for the payment of all such taxes known to such Person has been made on the books of such Person as may be required by GAAP;
          
(b) mechanics’, materialmen’s, bankers’, carriers’, warehousemen’s, and similar Liens and encumbrances arising in the ordinary course of business and securing obligations of such Person that are not overdue for a period of more than 60 days or are being contested in good faith by appropriate proceedings diligently pursued, provided that in the case of any such contest (i) any proceedings commenced for the enforcement of such Liens and encumbrances shall have been duly suspended; and (ii) such provision for the payment of such Liens and encumbrances has been made on the books of such Person as may be required by GAAP;
 
(c) Liens arising in connection with worker’s compensation, unemployment insurance, old age pensions (subject to the applicable provisions of this Agreement) and social security benefits which are not overdue or are being contested in good faith by appropriate proceedings diligently pursued, provided that in the case of any such contest (i) any proceedings commenced for the enforcement of such Liens shall have been duly suspended; and (ii) such provision for the payment of such Liens has been made on the books of such Person as may be required by GAAP;
 
(d) (i) Liens incurred in the ordinary course of business to secure the performance of statutory obligations arising in connection with progress payments or advance payments due under contracts with the United States or any foreign government or any agency thereof entered into in the ordinary course of business and (ii) Liens incurred or deposits made in the ordinary course of business to secure the

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                 performance of statutory obligations (including obligations to customs authorities), bids, leases, fee and expense arrangements with trustees and fiscal agents and other similar obligations (exclusive of obligations incurred in connection with the borrowing of money, any lease-purchase arrangements or the payment of the deferred purchase price of property), provided that full provision for the payment of all such obligations set forth in clauses (i) and (ii) has been made on the books of such Person as may be required by GAAP; and
 
(e) any minor imperfections of title, including but not limited to easements, covenants, rights-of-way or other similar restrictions, which, either individually or in the aggregate do not materially adversely affect the present or future use of the property to which they relate, which would have a material adverse effect on the sale or lease of such property, or which would render title thereto unmarketable.

      “Permitted Investments” shall mean:

      (a) Governmental Obligations;
          
(b) Obligations of a state of the United States, the District of Columbia or any possession of the United States, or any political subdivision thereof, which are described in Section 103(a) of the Internal Revenue Code and are rated in any of the highest 3 major rating categories as determined by at least one nationally recognized Rating Agency; or secured, as to payments of principal and interest, by a letter of credit provided by a financial institution or insurance provided by a bond insurance company which itself or its debt is rated in the highest 3 major rating categories as determined by at least one Rating Agency;
 
(c) Banker’s acceptances, commercial accounts, certificates of deposit, or depository receipts issued by a bank, trust company, savings and loan association, savings bank or other financial institution whose deposits are insured by the Federal Deposit Insurance Corporation and whose reported capital and surplus equal at least $500,000,000;
 
(d) commercial paper with a minimum rating of “A-1” (or better) by S&P or “P-1” (or better) by Moody’s, full faith and credit direct obligations of the United States of America or, with respect to the Foreign Subsidiaries, of the central government of the applicable jurisdiction, or any agency thereof, certificates of deposit, and other short term investments (each of a duration of one year or less), maintained by Company or any of its Subsidiaries consistent with the present investment practices of such parties (as classified in the current financial statements of such parties);
 
(e)
          
Secured repurchase agreements against obligations itemized in paragraph (a) above, and executed by a bank or trust company or by members of the association of primary dealers or other recognized dealers in United States government securities, the market value of which must be maintained at levels at least equal to the amounts advanced and repurchase agreements entered into with counterparties

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        having ratings in either of the highest two rating categories by Moody’s or S&P, or the highest rating category by Fitch Investor Services, Duff & Phelps or Thompson Bank Watch and providing for underlying securities to be held by a third party;
          
(f) Any fund or other pooling arrangement which exclusively purchases and holds the investments itemized in (a) through (e) above; and
 
(g)
          
other short term investments (excluding investments in Subsidiaries, Affiliates or Joint Ventures) made or maintained by any Foreign Subsidiary outside of the United States of America in the ordinary course of its business, consistent with the present investment practices of Company and its Subsidiaries as of the date hereof (generally, and as to the individual and aggregate amounts and other terms thereof).

      “Permitted Securitization” shall mean the transfer or encumbrance of certain foreign accounts receivable by any of the Foreign Subsidiaries to a Special Purpose Subsidiary conducted in accordance with the following requirements:

      (a)
          
The disposition of foreign accounts receivable will not result in the aggregate principal amount of Debt at any time issued and outstanding in respect of Permitted Securitizations being in excess of Two Hundred Million Dollars ($200,000,000) in aggregate while the Indebtedness remains outstanding;
          
(b) The Foreign Subsidiary disposing of foreign accounts receivable to a Special Purpose Subsidiary pursuant to such Permitted Securitization shall itself actually receive (substantially contemporaneously with such disposition) cash in connection with any such Securitization Transaction in an amount based on normal and customary advance rates (and taking into account typical deductions for market-based, arms-length Securitization Transactions);
 
(c) Each such disposition shall be without recourse to Company or its Domestic Subsidiaries and otherwise on normal and customary terms and conditions for comparable asset-based Securitization Transactions;
 
(d) Each such Securitization Transaction shall be structured on the basis of the issuance of non-recourse (to Company or its Domestic Subsidiaries) Debt or other similar securities by a Special Purpose Subsidiary;
 
(e) Both immediately before and immediately after each such disposition, no Default or Event of Default (whether or not related to such disposition) shall have occurred and be continuing; and
 
(f) Immediately prior to and immediately after conducting each such Securitization Transaction, Company must have on its rated Senior Debt a BB- or better rating from S&P and a Ba3 rating or better from Moody’s.

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      “Permitted Transfer” shall mean (i) any disposition of inventory or worn out or obsolete machinery, equipment or other such personal property in the ordinary course of business, and (ii) the transfer by Company or its Subsidiaries to Company or any Wholly Owned Subsidiary of machinery and equipment from and after the Restatement Date (provided that no Default or Event of Default has occurred and is continuing at the time of any such transfer).

      “Permitted Transferee” shall mean a “Permitted Transferee” as defined in Company’s current Certificate of Incorporation, and any subsequent amendment of the definition of such term approved by the Required Lenders.

      “Person” shall mean an individual, corporation, partnership, limited liability company, trust, incorporated or unincorporated organization, joint venture, joint stock company, or a government or any agency or political subdivision thereof or other entity of any kind.

      “Pledge Agreement(s)” shall mean that certain Second Amended and Restated Stock Pledge and Security Agreement dated as of April 20, 2007, as the same may be amended, restated or otherwise modified from time to time, together with all other pledge agreements, including any nantissements , notarial deeds, pledges of financial instrument accounts, or other local law pledges (and any of them) previously executed and delivered, executed and delivered as of the Effective Date or to be executed or delivered pursuant to this Agreement (as the same may be amended, restated or otherwise modified from time to time) all, in favor of Agent, for and on behalf of Lenders under this Agreement (or pledged directly to the Lenders, as local law shall require), provided, however, that with respect to those Pledge Agreements executed by or covering the Equity Interests of a Significant Foreign Subsidiary prior to the Restatement Date such Pledge Agreements may exclude from the Indebtedness secured thereunder Hedging Obligations that are deemed Indebtedness hereunder.

      “Prime Rate” shall mean the per annum interest rate established by Agent, or in the case of Swing Line Advances carried at the Prime-based Rate, by Swing Line Lender, as its prime rate for its borrowers, as such rate may vary from time to time, which rate is not necessarily the lowest rate on loans made by Agent or Swing Line Lender at any such time.

      “Prime-based Advance” shall mean an Advance (including a Swing Line Advance) which bears interest at the Prime-based Rate.

      “Prime-based Rate” shall mean that rate of interest which is the sum of the Applicable Margin plus the greater of (i) the Prime Rate or (ii) the Alternate Base Rate.

      “Prior Credit Agreement” is defined in the Preamble.

      “Pro Forma Projected Financial Information” shall mean, as to any proposed acquisition, a statement executed by an Authorized Officer of Company (supported by reasonable detail) setting forth the total consideration to be paid or incurred in connection with the proposed acquisition and, pro forma combined projected financial information for Company and its Consolidated Subsidiaries and the acquisition target (if applicable), consisting of projected opening balance sheets and covenant calculations as of the proposed effective date of the acquisition and as of the end of at least the next succeeding three (3) fiscal years of Company following the acquisition and projected statements of income, balance sheets and cash flow

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statements for each of those years based on historical financial information prepared in accordance with GAAP, including sufficient detail to permit calculation of the amounts and the financial covenants described in Sections 7.4 through 7.6 hereof and evidencing projected compliance therewith, as projected as of the effective date of the acquisition and for those fiscal years and accompanied by (i) a statement setting forth a calculation of the ratios and amounts so described and (ii) a statement in reasonable detail specifying all material assumptions underlying the projections.

      “Prohibited Transaction” shall mean any transaction involving a Pension Plan which constitutes a “prohibited transaction” under Section 406 of ERISA or Section 4975 of the Internal Revenue Code.

      “Quoted Rate” shall mean the rate of interest per annum offered by Swing Line Lender in its sole discretion with respect to a Swing Line Advance.

      “Quoted Rate Advance” means any Swing Line Advance which bears interest at the Quoted Rate.

      “Rating Agency” shall mean S&P, or Moody’s, or any of their respective successors, or any other nationally recognized rating agency, and “Rating Agencies” shall be the collective reference to any or all of the foregoing.

      “Reaffirmation of Domestic Pledge Agreements” shall mean that certain Reaffirmation of Domestic Pledge Agreements dated as of the Restatement Date to the Agent for the benefit of the Lenders as the same may be amended, restated or otherwise modified from time to time.

      “Refunded Swing Line Advance” is defined in Section 2.5(e) hereof.

      “Register” is defined in Section 13.8(f) hereof.

      “Reimbursement Obligation(s)” shall mean the aggregate amount of all unreimbursed drawings under all Letters of Credit (excluding for the avoidance of doubt, reimbursement obligations that are deemed satisfied pursuant to a deemed disbursement under this Agreement).

      “Reinvest” or “Reinvestment” shall mean, with respect to any Net Cash Proceeds, received by any Person, the application of such monies to (i) repair, improve or replace any tangible personal (excluding Inventory) or real property of the Company and its Subsidiaries or any intellectual property reasonably necessary in order to use or benefit from any property or (ii) acquire any such property (excluding Inventory) to be used in the business of such Person.

      “Reinvestment Period” shall mean a 180-day period during which Reinvestment must be completed under Section 4.9(b) of this Agreement.

      “Reportable Event” shall mean a “reportable event” within the meaning of Section 4043 of ERISA and the regulations promulgated thereunder, which is material to Company and its Subsidiaries, taken as a whole, the reporting of which has not been waived under such regulations.

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      “Request for Advance” shall mean a Request for Revolving Credit Advance, a Request for Swing Line Advance, a Request for Term Loan Advance, or any of them, as the context may indicate or otherwise require.

      “Request for Revolving Credit Advance” shall mean a request for Revolving Credit Advance issued by Company or by a Permitted Borrower and countersigned by Company under Section 2.3(c) hereof, as the case may be, in the form attached annexed hereto as Exhibit A-1, as such form may be amended or otherwise modified from time to time.

      “Request for Swing Line Advance” shall mean a request for Swing Line Advance issued by Company or by a Permitted Borrower and countersigned by Company under Section 2.5(c) hereof, in the form attached annexed hereto as Exhibit A-2, as such form may be amended or otherwise modified from time to time.

      “Request for Term Loan Advance” shall mean a request for Term Loan Advance issued by Company under Section 4.4 hereof, in the form attached annexed hereto as Exhibit K, as such form may be amended or otherwise modified from time to time.

      “Required Lenders” shall mean at any time (a) so long as the Revolving Credit Aggregate Commitment has not been terminated, Lenders holding more than 50.0% of the sum of (i) the Revolving Credit Aggregate Commitment plus (ii) the aggregate principal amount of Indebtedness then outstanding under the Term Loan and (b) if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity, acceleration or otherwise), Lenders holding more than 50.0% of the aggregate principal amount then outstanding under the Revolving Credit and the Term Loan; provided that, for purposes of determining Required Lenders hereunder, the Letter of Credit Obligations and principal amount outstanding under the Swing Line shall be allocated among the Revolving Credit Lenders based on their respective Revolving Credit Percentages.

      “Required Revolving Credit Lenders” shall mean at any time (a) so long as the Revolving Credit Aggregate Commitment has not been terminated, the Revolving Credit Lenders holding more than 50.0% of the Revolving Credit Aggregate Commitment and (b) if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity, acceleration or otherwise), Revolving Credit Lenders holding more than 50.0% of the aggregate principal amount then outstanding under the Revolving Credit; provided that, for purposes of determining Required Revolving Credit Lenders hereunder, the Letter of Credit Obligations and principal amount outstanding under the Swing Line shall be allocated among the Revolving Credit Lenders based on their respective Revolving Credit Percentages.

      “Required Term Loan Lenders” shall mean at any time with respect to the Term Loan, Term Loan Lenders holding more than 50.0% of the aggregate principal amount then outstanding under the Term Loan.

      “Restatement Date” shall mean the date on which all of the conditions precedent set forth in Sections 5.1 through 5.10 hereof have been satisfied, as evidenced by the closing certificate of Company.

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      “Revolving Credit” shall mean the revolving credit loans to be advanced to the Borrowers by Lenders pursuant to Section 2 hereof, in an aggregate amount (subject to the terms hereof), not to exceed, at any one time outstanding, the Revolving Credit Aggregate Commitment.

      “Revolving Credit Advance” or “Advance of the Revolving Credit” shall mean a borrowing requested by a Borrower and made by the Revolving Credit Lenders under Section 2.1 of this Agreement, including without limitation any readvance, refunding or conversion of such borrowing pursuant to Section 2.3 hereof and any deemed disbursement of an Advance in respect of a Letter of Credit under Section 3.6(a) hereof, and may include, subject to the terms hereof, Eurocurrency-based Advances and Prime-based Advances.

      “Revolving Credit Aggregate Commitment” shall mean Two Hundred Fifty Million Dollars ($250,000,000.00) subject to (i) any increases in the Revolving Credit Aggregate Commitment from time to time pursuant to Section 2.17 of this Agreement, by an amount not to exceed the Revolving Credit Optional Increase and (ii) reduction or termination under Section, 2.15, 2.16 or 9.2 hereof.

      “Revolving Credit Commitment Amount” shall mean with respect to any Revolving Credit Lender, (i) if the Revolving Credit Aggregate Commitment has not been terminated, the amount specified opposite such Revolving Credit Lender’s name in the column entitled “Revolving Credit Commitment Amount” on Schedule 1.1, as adjusted from time to time in accordance with the terms hereof; and (ii) if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity, acceleration or otherwise), the amount equal to its Revolving Credit Percentage of the aggregate principal amount outstanding under the Revolving Credit (including the outstanding Letter of Credit Obligations and any outstanding Swing Line Advances).

      “Revolving Credit Facility Fee” shall mean the facility fee payable to Agent for distribution to Lenders pursuant to Section 2.13 hereof.

      “Revolving Credit Lenders” shall mean the financial institutions from time to time parties hereto as lenders of the Revolving Credit.

      “Revolving Credit Maturity Date” shall mean the earlier to occur of (i) April 20, 2012, as such date may be extended from time to time pursuant to Section 2.16 hereof, and (ii) the date on which the Revolving Credit Aggregate Commitment shall be terminated pursuant to Section 2.15 or 9.2 hereof.

      “Revolving Credit Notes” shall mean the revolving credit notes which may be issued by the Borrowers at the request of a Lender pursuant to Section 2.2(e) hereof in the form annexed to this Agreement as Exhibit B-1 and B-2, as applicable, as such Notes may be amended, renewed, replaced or extended from time to time.

      “Revolving Credit Optional Increase” shall mean an amount up to Two Hundred Fifty Million Dollars ($250,000,000.00), minus the portions thereof applied from time to time under Section 2.16 hereof to increase the Revolving Credit Aggregate Commitment.

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      “Revolving Credit Percentage” means, with respect to any Revolving Credit Lender, the percentage specified opposite such Revolving Credit Lender’s name in the column entitled “Revolving Credit Percentage” on Schedule 1.1, as adjusted from time to time in accordance with the terms hereof.

      “Securitization Transaction(s)” shall mean a transfer of, or grant of a Lien on, foreign accounts receivable by any Foreign Subsidiary to a Special Purpose Subsidiary or other special purpose or limited purpose entity and the issuance (whether by such Special Purpose Subsidiary or other special purpose or limited purpose entity or any other Person) of Debt or of any securities secured directly or indirectly by interests in, or of trust or a comparable certificates or other securities directly or indirectly evidencing interests in, such foreign accounts receivable.

      “Senior Debt” shall mean, with respect to Company and its Consolidated Subsidiaries, Total Debt, excluding Subordinated Debt.

      “Significant Domestic Subsidiary(ies)” shall mean, at any time the Domestic Permitted Borrowers and all Domestic Subsidiaries, whether existing as of the Restatement Date or created or acquired by Company thereafter, except any Subsidiary:

      (a) the total assets of which, on an individual basis, on any date of determination, are less than $20,000,000; and
         
(b) which has, as of the most recent fiscal quarter then ending, for the four preceding fiscal quarters, an EBITDA of less than $5,000,000.

      “Significant Foreign Subsidiary(ies)” shall mean, at any time, the Foreign Permitted Borrowers and all Foreign Subsidiaries, whether existing as of the Restatement Date or created or acquired by Company thereafter, except any Subsidiary:

      (a) the total assets of which, on an individual basis, on any date of determination, are, excluding goodwill, less than $100,000,000; and
           
(b) which has, as of the most recent fiscal quarter then ending, for the four preceding fiscal quarters, an EBITDA of less than $15,000,000,

provided however that, notwithstanding the foregoing, none of the Israeli Subsidiaries shall be considered a Significant Foreign Subsidiary hereunder and none of the Subsidiaries the Equity Interests of which are not held directly by Company or any Domestic Subsidiary shall be considered a Significant Foreign Subsidiary hereunder.

      “Significant Subsidiary(ies)” shall mean the Significant Domestic Subsidiaries and the Significant Foreign Subsidiaries.

      “Siliconix” shall mean Siliconix Incorporated, a Delaware corporation.

      “Siliconix Technology” shall mean Siliconix Technology C.V., a company formed under the laws of The Netherlands.

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      “SPFV” shall mean a special purpose funding vehicle utilized by a Granting Lender pursuant to Section 13.8 hereof to fund all or any part of any Advance that such Lender would otherwise be obligated to fund under this Agreement.

      “Special Letters of Credit” shall mean letters of credit issued by Agent from time to time as an administrative convenience for the account of Company or its Subsidiaries on its own behalf and not on behalf (by risk participation or otherwise) of the other Lenders, in an aggregate undrawn amount at any time outstanding plus the aggregate amount of unpaid Reimbursement Obligations not to exceed the Letter of Credit Reserve in effect at such time, each such letter of credit being in an undrawn amount of less than $750,000.

      “Special Purpose Subsidiary” shall mean any wholly-owned direct or indirect Subsidiary of Company established for the sole purpose of conducting a Permitted Securitization and otherwise established and operated in accordance with customary industry practices.

      “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc., its successors and assigns, and, if such organization shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, “S&P” shall be deemed to refer to any other nationally recognized securities rating agency designated by Agent.

      “Stockholder’s Equity” shall mean (i) legal capital (carried at the par or stated value thereof) consisting of common or preferred stock, (ii) paid-in capital to the extent of the excess over par or stated value paid for Equity Interests and that created by a corporate readjustment and (iii) retained earnings consisting of cumulative Net Income reduced by dividends declared or paid.

      “Subordinated Debt” shall mean all Debt of Company and its Subsidiaries which has been subordinated in right of payment and priority to the Indebtedness, in each case on terms and conditions reasonably satisfactory to Agent and the Required Lenders, including, without limitation, the Subordinated Debt existing on the Restatement Date and identified (as such) on Schedule 8.13 hereto.

      “Subsidiary(ies)” shall mean any corporation, association, joint stock company, limited liability company, partnership or business trust of which more than fifty percent (50%) of the outstanding voting Equity Interests are owned either directly or indirectly by Company or one or more of its Subsidiaries or by Company and one or more of its Subsidiaries, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by Company and/or its Subsidiaries.

      “Sweep Agreement” means any agreement relating to the “Sweep to Loan” automated system of Agent or any other cash management arrangement which Company and/or any Permitted Borrower and Agent have executed for the purposes of effecting the borrowing and repayment of Swing Line Advances.

      “Swing Line” shall mean the revolving credit loan to be advanced to any of the a Borrowers by Swing Line Lender pursuant to Section 2.5 hereof, in an aggregate amount (subject to the terms hereof) not to exceed, at any one time outstanding, the Swing Line Maximum Amount.

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      “Swing Line Advance” or “Advance of the Swing Line” shall mean a borrowing requested by Borrower and made by Swing Line Lender pursuant to Section 2.5 hereof and may include, subject to the terms hereof, Quoted Rate Advances and Prime-based Advances.

      “Swing Line Lender” shall mean Comerica Bank, and its successors and assigns.

      “Swing Line Maximum Amount” shall mean Forty Million Dollars ($40,000,000).

      “Swing Line Notes” shall mean the swing line notes which may be issued by Company or a Permitted Borrower at the request of Swing Line Lender pursuant to Section 2.5(a) hereof in the form annexed hereto as Exhibit C-1 or C-2, as the case may be, as such Notes may be amended or supplemented from time to time, and any notes issued in substitution, replacement or renewal thereof from time to time.

      “Tangible Net Worth” shall mean, as of any date of determination, the total common shareholders’ equity of Company and its Subsidiaries on a Consolidated basis, together with the amount, if any, of preferred stock which is classified as part of shareholders’ equity, as reflected on the most recent regularly prepared quarterly balance sheet of Company and such Subsidiaries, which balance sheet shall be prepared in accordance with GAAP, minus the book amount of intangible assets including, without limitation, such items as goodwill, trademarks, trade names, copyrights, patents, licenses and rights in any intangible assets, and unamortized debt discount and expense, as of such date determined in accordance with GAAP, but excluding the effects of the currency translation adjustment and of the pension adjustment under the additional minimum liability section of FASB 87.

      “Term Loan” shall mean the term loan to be made to Borrower by the Term Loan Lenders pursuant to Section 4.1 hereof, in the aggregate principal amount of not more than One Hundred Twenty Five Million Dollars ($125,000,000).

      “Term Loan Advance” or “Advance of the Term Loan” shall mean the borrowing requested by the Company and made by the Term Loan Lenders pursuant to Sections 4.1 and 4.4 hereof, including without limitation any refunding or conversion of such borrowing pursuant to Section 4.4 hereof, and may include, subject to the terms hereof, Eurocurrency-based Advances and Prime-based Advances.

      “Term Loan Amount” shall mean with respect to any Term Loan Lender, the amount equal to its Term Loan Percentage of the aggregate principal amount outstanding under the Term Loan.

      “Term Loan Lenders” shall mean the financial institutions from time to time parties hereto as lenders of the Term Loan.

      “Term Loan Maturity Date” shall mean July 1, 2011.

      “Term Loan Notes” shall mean the term notes described in Section 4.2(e) hereof, made by Borrower to each of the Term Loan Lenders in the form attached hereto as Exhibit J, as such notes may be amended or supplemented from time to time, and any other notes issued in substitution, replacement or renewal thereof from time to time.

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      “Term Loan Percentage” shall mean with respect to any Term Loan Lender, the percentage specified opposite such Term Loan Lender’s name in the column entitled “Term Loan Percentage” on Schedule 1.1, as adjusted from time to time in accordance with the terms hereof.

      “Total Debt” shall mean, with respect to Company and its Consolidated Subsidiaries, as of any date of determination, the sum, without duplication, of (a) the aggregate outstanding principal amounts of (i) Advances outstanding as of such date and any Letter of Credit Obligations outstanding as of such date, (ii) all other Debt of Company and its Subsidiaries as of such date for borrowed money or which is evidenced by debentures, notes or other similar instruments, (iii) all other obligations of Company and its Subsidiaries as of such date to reimburse the issuers of letters of credit issued for their account for each payment made by such issuers under such letters of credit (iv) all capitalized lease obligations of Company and its Subsidiaries as of such date (v) all obligations of Company and its Subsidiaries under conditional sale or other title retention agreements relating to property or assets purchased and (vi) any Debt or off balance sheet obligations issued pursuant to a Securitization Transaction (whether by a Special Purpose Subsidiary or otherwise), all determined on a Consolidated basis.

      “Trans-European Business Day” shall mean a day when the Trans-European Settlement System is open for business.

      “Trans-European Settlement System” shall mean the Trans-European Automated Real-time Gross Settlement Express Transfer System or any successor.

      “Treaty on European Union” shall mean the Treaty of Maastricht (which was signed at Maastricht on February 7, 1992 and came into force on November 1, 1993), as amended by the Treaty of Amsterdam (which was signed on October 2, 1997 and came into force on May 1, 1999) and the Treaty of Nice (which was signed on February 26, 2001 and came into force on February 1, 2003).

      “USA Patriot Act” shall have the meaning set forth in Section 6.9.

      “Vishay Asia” shall mean Vishay Intertechnology Asia Ltd. Pte., a company organized under the laws of Singapore.

      “Vishay Europe” shall mean Vishay Europe GmbH, a company organized under the laws of the Federal Republic of Germany, formerly known as Vishay Beteiligungs GmbH.

      “Vishay Electronic” shall mean Vishay Electronic GmbH, a company organized under the laws of the Federal Republic of Germany.

      “Vishay India” shall mean Vishay Components India Pvt Ltd., a company organized under the laws of India.

      “Vishay Israel” shall mean Vishay Israel Limited, a corporation organized under the laws of Israel and a Subsidiary of Company.

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      “Weighted Percentage” shall mean with respect to any Lender, its percentage share as set forth in Schedule 1.1, as such Schedule may be revised by the Agent from time to time, which percentage shall be calculated as follows:

      (a) as to such Lender, so long as the Revolving Credit Aggregate Commitment has not been terminated, its weighted percentage calculated by dividing (i) the sum of (x) its Revolving Credit Commitment Amount plus (y) its Term Loan Amount, by (ii) the sum of (x) the Revolving Credit Aggregate Commitment plus (y) the aggregate principal amount of Indebtedness outstanding under the Term Loan; and
                 
(b) as to such Lender, if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity, acceleration or otherwise), its weighted percentage calculated by dividing (i) the sum of (x) its applicable Revolving Credit Commitment Amount plus (y) its Term Loan Amount, by (ii) the sum of the aggregate principal amount outstanding under (x) the Revolving Credit (including any outstanding Letter of Credit Obligations and outstanding Swing Line Advances) and (z) the Term Loan.

      “Wholly Owned Subsidiary(ies)” shall mean any of Company’s direct or indirect Subsidiaries whose Equity Interests (other than directors’ or qualifying shares to the extent required under applicable law) are owned entirety by any other Wholly Owned Subsidiary and/or Company, and for the avoidance of doubt, shall include the Israeli Subsidiaries.

      1.2 Euro.

      (a) Redenomination of Eurocurrency-based Advances and other Advances into Euro Units .
 
          (i) Each obligation under this Agreement of a party hereto which (A) was originally denominated in the former national currency of a Participating Member State, or (B) would otherwise have been denominated in such former national currency prior to such date shall be denominated in, or redenominated into, as applicable, the Euro Unit in accordance with EMU Legislation and applicable state law, provided that, if and to the extent that any EMU Legislation provides that amounts denominated in the euro unit or the National Currency Unit of a Participating Member State, that are payable by crediting an account of the creditor within that country, may be made in either Euro or National Currency Units, each party to this Agreement shall be entitled to pay or repay any such amounts in either the Euro Unit or such National Currency Unit.
         
  (ii) Subject to any EMU Legislation, references in this Agreement to a minimum amount (or an integral multiple thereof) in a National Currency Unit to be paid to or by a party hereto shall be deemed to be a reference to such reasonably comparable and convenient amount (or an integral multiple thereof) in the Euro Unit as Agent may from time to time specify.

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      (b)       Payments .

                (i) All payments by any Borrower or any Lender of amounts denominated in the Euro or a National Currency Unit of a Participating Member State, shall be made in immediately available, freely transferable, cleared funds to the account of Agent in the principal financial center in such Participating Member State, as from time to time designated by Agent for such purpose.
         
(ii) All amounts payable by Agent to any party under this Agreement in the National Currency Unit of a Participating Member State shall instead be paid in the Euro Unit.
 
(iii) Subject in the case of any Lender to Section 12.3 hereof, Agent shall not be liable to any party to this Agreement in any way whatsoever for any delay, or the consequences of any delay, in the crediting to any account of any amount denominated in the Euro or a National Currency Unit of a Participating Member State.
 
(iv) All references herein to the London interbank or other national market with respect to any National Currency Unit of a Participating Member State shall be deemed a reference to the applicable markets and locations referred to in the definition of “Business Day” in Section 1.1 .
 
      (c) Increased Costs . The Borrowers shall, from time to time upon demand of any Lender (with a copy to Agent), pay to such Lender the amount of any cost or increased cost incurred by, or of any reduction in any amount payable to or in the effective return on its capital to, or of interest or other return foregone by, such Lender or any holding company of such Lender as a result of the introduction of, changeover to or operation of the Euro in a Participating Member State, other than any such cost or reduction or amount foregone reflected in any interest rate hereunder.
         
(d) Inconsistent Practice . If the basis of accrual of interest or fees expressed in this Agreement with respect to the currency of any state that becomes a Euro Member shall be inconsistent with any convention or practice in the London interbank market for the basis of accrual of interest or fees in respect of Euros, such convention or practice shall replace such expressed basis effective as of and from the date on which such state becomes a Euro Member; provided, that if any Advance in the currency of such state is outstanding immediately prior to such date, such replacement shall take effect, with respect to such Advance, at the end of the then current Interest Period.
 
(e) Unavailability of Euro . If Agent at any time determines that: (i) the Euro has ceased to be utilized as the basic accounting unit of the European Community; (ii) for reasons affecting the market in Euros generally, Euros are not freely traded between banks internationally; or (iii) it is illegal, impossible or impracticable for

29



  payments to be made hereunder in Euro, then Agent may, in its discretion declare (such declaration to be binding on all the parties hereto) that any payment made or to be made thereafter which, but for this provision, would have been payable in the Euro shall be made in a component currency of the Euro or Dollars (as selected by Agent (the “ Selected Currency ”) and the amount to be so paid shall be calculated on the basis of the equivalent of the Euro in the Selected Currency).
         
      (f) Additional Changes at Agent’s Discretion . This section and other provisions of this Agreement relating to Euros and the National Currency Units of Participating Member States shall be subject to such further changes (including changes in interpretation or construction) as Agent may from time to time in its reasonable discretion notify to the Borrowers and Lenders to be necessary or appropriate to reflect the changeover to the Euro in Participating Member States.

      2. REVOLVING CREDIT

      2.1 Commitment . Subject to the terms and conditions of this Agreement (including without limitation Section 2.3 hereof), each Revolving Credit Lender severally and for itself alone agrees to make Advances of the Revolving Credit in any one or more of the Permitted Currencies to any of the Borrowers from time to time on any Business Day during the period from the Restatement Date until (but excluding) the Revolving Credit Maturity Date in an aggregate amount, based on the Dollar Amount of any Revolving Credit Advances outstanding in Dollars and the Current Dollar Equivalent of any Advances outstanding in Alternative Currencies, not to exceed at any one time outstanding such Revolving Credit Lender’s Revolving Credit Percentage. Except as provided in Section 2.12 hereof, for purposes of this Agreement, Revolving Credit Advances in Alternative Currencies shall be determined, denominated and redenominated as set forth in Section 2.11 hereof. Subject to the terms and conditions set forth herein, advances, repayments and readvances may be made under the Revolving Credit. Advances of the Revolving Credit shall be subject to the following additional conditions and limitations:

      (a) No Permitted Borrower shall be entitled to request an Advance of the Revolving Credit or the Swing Line or the issuance of a Letter of Credit hereunder until (i) it has become a party to this Agreement, either by execution and delivery of this Agreement, or by execution and delivery of a Permitted Borrower Addendum to this Agreement, (ii) it has become a party to the applicable Guaranty either by execution and delivery of such Guaranty or by execution and delivery of a Joinder Agreement to such Guaranty, and (iii) in the case of each Permitted Borrower, Company has encumbered and/or delivered (or caused to be encumbered and/or delivered), as the case may be, pursuant to a Pledge Agreement those Equity Interests issued by such Permitted Borrower and owned (directly or indirectly) by Company by authority documents, legal opinions and other supporting documents as reasonably required by Agent and the Required Revolving Credit Lenders hereunder;
         
(b) No Subsidiary which is a Permitted Borrower as of the Restatement Date nor any Foreign Subsidiary which becomes a Permitted Borrower after the Restatement

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Date shall be entitled to request or maintain (or, in the case of any Eurocurrency-based Advance, maintain beyond any applicable Interest Period then in effect) an Advance of the Revolving Credit or the Swing Line or the issuance of a Letter of Credit hereunder if it ceases to be a Wholly Owned Subsidiary of Company.

      2.2 Accrual of Interest and Maturity; Evidence of Indebtedness . (a) Company hereby unconditionally promises to pay to Agent for the account of each Revolving Credit Lender the then unpaid principal amount of each Revolving Credit Advance of such Revolving Credit Lender made to Company and each Permitted Borrower, and each Permitted Borrower hereby unconditionally promises to pay to Agent for the account of each Revolving Credit Lender the then unpaid principal amount of each Revolving Credit Advance of such Revolving Credit Lender made to such Permitted Borrower, on the Revolving Credit Maturity Date and on such other dates and in such other amounts as may be required from time to time pursuant to this Agreement.

      (a) Each Revolving Credit Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of Company and each Permitted Borrower to the appropriate lending office of such Revolving Credit Lender resulting from each Revolving Credit Advance made by such lending office of such Revolving Credit Lender from time to time, including the amounts of principal and interest payable thereon and paid to such Revolving Credit Lender from time to time under this Agreement.
         
(b) Agent shall maintain the Register pursuant to Section 13.8(f), and a subaccount therein for each Revolving Credit Lender, in which Register and subaccounts (taken together) shall be recorded (i) the amount and applicable Permitted Currency of each Revolving Credit Advance made hereunder, the type thereof and each Interest Period applicable to any Eurocurrency-based Advance, (ii) the amount of any principal or interest due and payable or to become due and payable from Company or the applicable Permitted Borrower, as the case may be, to each Revolving Credit Lender hereunder in respect of the Revolving Credit Advances and (iii) both the amount of any sum received by Agent hereunder from Company or the applicable Permitted Borrower in respect of the Revolving Credit Advances and each Revolving Credit Lender’s share thereof.
 
(c) The entries made in the Register and the accounts of each Revolving Credit Lender maintained pursuant to paragraphs (b) and (c) of this Section 2.1 shall absent manifest error, to the extent permitted by applicable law, be conclusive evidence of the existence and amounts of the obligations of Company and the Permitted Borrowers therein recorded; provided , however , that the failure of any Revolving Credit Lender or Agent to maintain the Register or any such account, as applicable, or any error therein, shall not in any manner affect the obligation of each of Company and each Permitted Borrower to repay the Revolving Credit Advances (and all other amounts owing with respect thereto) made to Company or such Permitted Borrower by such Revolving Credit Lender in accordance with the terms of this Agreement.

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      (d)
           
Company agrees that, upon written request to the Agent (with a copy to Company) by any Revolving Credit Lender, Company and each of the Permitted Borrowers will execute and deliver, to such Revolving Credit Lender, at Company’s (or such Permitted Borrower’s) own expense, a Revolving Credit Note of each of Company and each of the Permitted Borrowers evidencing the outstanding Revolving Credit Advances owing to such Revolving Credit Lender; provided, that the delivery of such Revolving Credit Notes shall not be a condition precedent to the Restatement Date.

      2.3 Requests for and Refundings and Conversions of Advances . Company or a Permitted Borrower (with the countersignature of Company hereunder) may request a Revolving Credit Advance, refund any such Revolving Credit Advance in the same type of Revolving Credit Advance or convert any such Revolving Credit Advance to any other type of Revolving Credit Advance only after delivery to Agent of a Request for Revolving Credit Advance executed by an Authorized Officer of Company or of such Permitted Borrower (with the countersignature of an Authorized Officer of Company), subject to the following and to the remaining provisions hereof:

      (a) each such Request for Revolving Credit Advance shall set forth the information required on the Request for Revolving Credit Advance form annexed hereto as Exhibit A-1, including without limitation:
         
  (i) the proposed date of such Revolving Credit Advance, which must be a Business Day;
         
  (ii) whether such Revolving Credit Advance is a refunding or conversion of an outstanding Revolving Credit Advance;
 
  (iii) whether such Revolving Credit Advance is to be a Prime-based Advance or a Eurocurrency-based Advance, and, except in the case of a Prime-based Advance, the first Interest Period applicable thereto; and
 
  (iv) in the case of a Eurocurrency-based Advance, the Permitted Currency in which such Revolving Credit Advance is to be made.
 
(b) each such Request for Revolving Credit Advance shall be delivered to Agent by 12:00 noon (Detroit time) three (3) Business Days prior to the proposed date of such Revolving Credit Advance, except in the case of a Prime-based Advance to the Company or a Domestic Permitted Borrower, for which the Request for Revolving Credit Advance must be delivered by 12:00 noon (Detroit time) on such proposed date;
 
(c) on the proposed date of such Revolving Credit Advance, the Dollar Amount of the principal amount of such requested Revolving Credit Advance, plus the Dollar Amount of the principal amount of any other Revolving Credit Advances and Swing Line Advances being requested on such date, plus the principal amount of all other Advances of the Revolving Credit and of the Swing Line (except to the extent being refunded by such requested Revolving Credit Advance) then

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  outstanding hereunder, in each case whether to Company or any of the Permitted Borrowers (using the Current Dollar Equivalent of any such Revolving Credit Advances outstanding in any Alternative Currency, determined pursuant to the terms hereof as of the date of such requested Revolving Credit Advance), plus the aggregate outstanding amount of all Letter of Credit Obligations (based on the Dollar Amount of such Letter of Credit Obligations for any Letters of Credit denominated in Dollars and the Current Dollar Equivalent of any Letters of Credit denominated in any Alternative Currency) shall not exceed the Revolving Credit Aggregate Commitment; provided however, that, in the case of any Revolving Credit Advance being applied to refund an outstanding Swing Line Advance, the aggregate principal amount of Swing Line Advances to be refunded shall not be included for purposes of calculating the limitation under this Section 2.3(c);
 
      (d) in the case of a Permitted Borrower, on the proposed date of such Revolving Credit Advance, the principal amount of the Revolving Credit Advance being requested by such Permitted Borrower (determined and tested as aforesaid), plus the principal amount of any other Revolving Credit Advances and Swing Line Advances being requested by such Permitted Borrower on such date, plus the principal amount of any other Revolving Credit Advances and all Swing Line Advances then outstanding to such Permitted Borrower hereunder (determined as aforesaid), plus the Letter of Credit Obligations relating to Letters of Credit issued for the account of such Permitted Borrower, shall not exceed the applicable Permitted Borrower Sublimit;
         
(e) in the case of a Prime-based Advance, the principal amount of the initial funding of such Revolving Credit Advance, as opposed to any refunding or conversion thereof, shall be in a minimum amount of $5,000,000;
 
(f) in the case of a Eurocurrency-based Advance, the principal amount of such Advance, plus the amount of any other outstanding Advance of the Revolving Credit to be then combined therewith having the same Applicable Interest Rate and Interest Period, if any, shall be in a minimum amount of Ten Million Dollars ($10,000,000) or the equivalent thereof in an Alternative Currency (or a whole multiple of One Hundred Thousand Dollars ($100,000), or the equivalent thereof in the applicable Alternative Currency) and at any one time there shall not be in effect more than (x) for Revolving Credit Advances to Company, ten (10) Applicable Interest Rates and Interest Periods, and (y) for Revolving Credit Advances to each Permitted Borrower five (5) Applicable Interest Rates and Interest Periods for each such currency;
 
(g) a Request for Revolving Credit Advance, once delivered to Agent, shall not be revocable by Company or the Permitted Borrowers;
 
(h) each Request for Revolving Credit Advance shall constitute a certification by Company and the applicable Permitted Borrower, if any, as of the date thereof that:

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                (i) both before and after such Revolving Credit Advance, the obligations of Company and the Permitted Borrowers set forth in this Agreement and the other Loan Documents to which such Persons are parties are valid, binding and enforceable obligations of Company and the Permitted Borrowers, as the case may be;
         
(ii) all conditions to Revolving Credit Advances of the Revolving Credit have been satisfied, and shall remain satisfied to the date of such Revolving Advance (both before and after giving effect to such Revolving Credit Advance);
 
(iii) there is no Default or Event of Default in existence, and none will exist upon the making of such Revolving Credit Advance (both before and after giving effect to such Revolving Credit Advance);
 
(iv) the representations and warranties contained in this Agreement and the other Loan Documents are true and correct in all material respects and shall be true and correct in all material respects as of the making of such Revolving Credit Advance (both before and after giving effect to such Revolving Credit Advance); and
 
(v) the execution of such Request for Revolving Credit Advance will not violate the material terms and conditions of any material contract, agreement or other borrowing of Company or the Permitted Borrowers.
 
Agent, acting on behalf of Revolving Credit Lenders, may, at its option, lend under this Section 2 upon the telephone request of an Authorized Officer of Company or a Permitted Borrower and, in the event Agent, acting on behalf of Revolving Credit Lenders, makes any such Advance upon a telephone request, the requesting officer shall fax or email to Agent, on the same day as such telephone request, a Request for Revolving Credit Advance. Company and Permitted Borrowers hereby authorize Agent to disburse Revolving Credit Advances under this Section 2.3 pursuant to the telephone instructions of any person purporting to be a person identified by name on a written list of persons authorized by Company and delivered to Agent prior to the date of such request to make Requests for Revolving Credit Advance on behalf of Company and the Permitted Borrowers. Notwithstanding the foregoing, Company and each Permitted Borrower acknowledge that Company and each such Permitted Borrower shall bear all risk of loss resulting from disbursements made upon any telephone request. Each telephone request for a Revolving Credit Advance shall constitute a certification of the matters set forth in the Request for Revolving Credit Advance form as of the date of such requested Advance.

     2.4 Disbursement of Advances.

      (a)        Upon receiving any Request for Revolving Credit Advance from Company or a Permitted Borrower under Section 2.3 hereof, Agent shall promptly notify each

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Revolving Credit Lender by wire, telex, email or telephone (confirmed by email, wire, telecopy or telex) of the amount and currency of such Advance to be made and the date such Advance is to be made by said Revolving Credit Lender pursuant to its Revolving Credit Percentage of such Advance. Unless such Revolving Credit Lender’s commitment to make Advances of the Revolving Credit hereunder shall have been suspended or terminated in accordance with this Agreement, each such Revolving Credit Lender shall make available the amount of its Revolving Credit Percentage of each Advance in immediately available funds in the currency of such Advance to Agent, as follows:
 
  (i) for Domestic Advances, at the office of Agent located at One Detroit Center, Detroit, Michigan 48226, not later than 3:00 p.m. (Detroit time) on the date of such Advance; and
         
  (ii) for Eurocurrency-based Advances, at Agent’s Correspondent for the account of the Eurocurrency Lending Office of Agent, not later than 12 noon (the time of Agent’s Correspondent) on the date of such Advance.
 
      (b) Subject to submission of an executed Request for Revolving Credit Advance by Company or a Permitted Borrower (with the countersignature of Company as aforesaid) without exceptions noted in the compliance certification therein, Agent shall make available to Company or to the applicable Permitted Borrower, as the case may be, the aggregate of the amounts so received by it from Revolving Credit Lenders in like funds and currencies:
         
  (i) for Domestic Advances, not later than 4:00 p.m. (Detroit time) on the date of such Advance by credit to an account of Company or such Permitted Borrower maintained with Agent or to such other account or third party as Company or such Permitted Borrower may reasonably direct; and
 
  (ii) for Eurocurrency-based Advances, not later than 4:00 p.m. (the time of Agent’s Correspondent) on the date of such Advance, by credit to an account of Company or such Permitted Borrower maintained with Agent’s Correspondent or to such other account or third party as Company or such Permitted Borrower may reasonably direct.
 
(c) Agent shall deliver the documents and papers received by it for the account of each Revolving Credit Lender to such Revolving Credit Lender or upon its order. Unless Agent shall have been notified by any Revolving Credit Lender prior to the date of any proposed Advance that such Revolving Credit Lender does not intend to make available to Agent such Revolving Credit Lender’s Revolving Credit Percentage of such Advance, Agent may assume that such Revolving Credit Lender has made such amount available to Agent on such date and in such currency, as aforesaid and may, in reliance upon such assumption, make available to Company or to the applicable Permitted Borrower, as the case may be, a corresponding amount. If such amount is not in fact made available to Agent by such Revolving Credit Lender, as aforesaid, Agent shall be entitled to recover

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such amount on demand from such Revolving Credit Lender. If such Revolving Credit Lender does not pay such amount forthwith upon Agent’s demand therefor, Agent shall promptly notify Company, and Company or the applicable Permitted Borrower shall pay such amount to Agent, if such notice is delivered to Company prior to 1:00 p.m (Detroit time) on a Business Day, on the day such notice is received, and otherwise on the next Business Day, and such amount paid by Company shall be applied as a prepayment of the Revolving Credit (without any corresponding reduction in the Revolving Credit Aggregate Commitment), reimbursing Agent for having funded said amounts on behalf of such Revolving Credit Lender. The Company shall retain its claim against such Revolving Credit Lender with respect to the amounts repaid by it to Agent and, if such Revolving Credit Lender subsequently makes such amounts available to the Agent, Agent shall promptly make such amounts available to the Borrower as a Revolving Credit Advance. Agent shall also be entitled to recover from such Revolving Credit Lender or Company or the applicable Permitted Borrower, as the case may be, but without duplication, interest on such amount in respect of each day from the date such amount was made available by Agent to Company or such Permitted Borrower, as the case may be, to the date such amount is recovered by Agent, at a rate per annum equal to:
 
                (i) in the case of such Revolving Credit Lender, for the first two (2) Business Days such amount remains unpaid, with respect to Domestic Advances, the Federal Funds Effective Rate, and with respect to Eurocurrency-based Advances, Agent’s aggregate marginal cost (including the cost of maintaining any required reserves or deposit insurance and of any fees, penalties, overdraft charges or other costs or expenses incurred by Agent as a result of such failure to deliver funds hereunder) of carrying such amount and thereafter, at the rate of interest then applicable to such Revolving Credit Advances; and
         
(ii) in the case of Company or such Permitted Borrower, the rate of interest then applicable to such Advance of the Revolving Credit.
 
Until such Revolving Credit Lender has paid Agent such amount, such Revolving Credit Lender shall have no interest in or rights with respect to such Advance for any purpose whatsoever. The obligation of any Revolving Credit Lender to make any Advance of the Revolving Credit hereunder shall not be affected by the failure of any other Revolving Credit Lender to make any Advance hereunder, and no Revolving Credit Lender shall have any liability to Company or any of its Subsidiaries, Agent, any other Revolving Credit Lender, or any other party for another Revolving Credit Lender’s failure to make any loan or Advance hereunder.

        2.5 (a) Swing Line Advances . Swing Line Lender may, on the terms and subject to the conditions hereinafter set forth (including without limitation Section 2.5(c) hereof), make one or more advances in Dollars or in any Alternative Currency (each such advance being a “Swing Line Advance”) to any Borrower, from time to time on any Business Day during the period from

36


the date hereof to (but excluding) the Revolving Credit Maturity Date in an aggregate amount, based on the Dollar Amount of any such Advances outstanding in Dollars and the Current Dollar Equivalent of any such Advances outstanding in Alternative Currencies, not to exceed at any time outstanding the Swing Line Maximum Amount. Swing Line Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of each Borrower to Swing Line Lender resulting from each Swing Line Advance of such Lender from time to time, including the amounts of principal and interest payable thereon and paid to such Lender from time to time. The entries made in such account or accounts of Swing Line Lender shall, to the extent permitted by applicable law, be conclusive evidence, absent manifest error, of the existence and amounts of the obligations of such Borrower therein recorded; provided , however , that the failure of Swing Line Lender to maintain such account, as applicable, or any error therein, shall not in any manner affect the obligation of such Borrower to repay the Swing Line Advances (and all other amounts owing with respect thereto) made to such Borrower by Swing Line Lender in accordance with the terms of this Agreement. Advances, repayments and readvances under the Swing Line may be made, subject to the terms and conditions of this Agreement. Each Swing Line Advance shall mature and the principal amount thereof shall be due and payable by the applicable Borrower on the last day of the Interest Period applicable thereto (if any) and in the case of any Prime-based Advance, on the Revolving Credit Maturity Date.

      Each Borrower agrees that, upon the written request of Swing Line Lender (with a copy concurrently delivered to Agent) it will execute and deliver to Swing Line Lender Swing Line Notes executed by it provided, that the delivery of such Swing Line Notes shall not be a condition precedent to the Restatement Date.

      (a) Accrual of Interest . Each Swing Line Advance shall, from time to time after the date of such Advance, bear interest at its Applicable Interest Rate. The amount and date of each Swing Line Advance, its Applicable Interest Rate, its Interest Period, if any, and the amount and date of any repayment shall be noted on Swing Line Lender’s account maintained pursuant to Section 2.5(a), which records will be conclusive evidence thereof, absent manifest error; provided , however, that any failure by Swing Line Lender to record any such information shall not relieve such Borrower of its obligation to repay the outstanding principal amount of such Advance, all interest accrued thereon and any amount payable with respect thereto in accordance with the terms of this Agreement and the other Loan Documents.
         
(b) Requests for Swing Line Advances . Company or a Permitted Borrower (with the countersignature of Company) may request a Swing Line Advance only after delivery to Swing Line Lender (with a copy concurrently delivered to Agent) of a Request for Swing Line Advance executed by an Authorized Officer of Company and, if applicable such Permitted Borrower, subject to the following and to the remaining provisions hereof:
         
  (i) each such Request for Swing Line Advance shall set forth the information required on the Request for Advance form annexed hereto as Exhibit A–2, including without limitation:

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(A) the proposed date of such Swing Line Advance, which must be a Business Day;
 
(B) whether such Swing Line Advance is to be a Prime-based Advance, a Eurocurrency-based Advance or a Quoted Rate Advance;
 
                (C) except with respect to any Prime-based Advance, the duration of the Interest Period applicable thereto; and
 
(D) in the case of a Eurocurrency-based Advance, the Permitted Currency in which such Advance is to be made.

      (ii) the Dollar Amount of the principal amount of such requested Swing Line Advance, plus the aggregate principal amount of all other Swing Line Advances then outstanding hereunder (including any other Swing Line Advances requested to be made on such date but excluding any such Advances being refunded by such requested Swing Line Advance) to any Borrower (using the Current Dollar Equivalent of any such Advances outstanding in any Alternative Currency, determined pursuant to the terms hereof as of the date of such requested Advance) shall not exceed the Swing Line Maximum Amount;
          
(iii) as of the proposed date of such Swing Line Advance, the Dollar Amount of the principal amount of such requested Swing Line Advance, plus the aggregate principal amount of all other Swing Line Advances and all Advances of the Revolving Credit then outstanding hereunder (including any Revolving Credit Advances or other Swing Line Advances requested to be made on such date, but excluding any such Advances being refunded by such requested Swing Line Advance) to any Borrower (using the Current Dollar Equivalent of any such Advances outstanding in any Alternative Currency, determined pursuant to the terms hereof as of the date of such requested Advance), and the aggregate outstanding Letter of Credit Obligations (based on the Dollar Amount of any Letters of Credit denominated in Dollars and the Current Dollar Equivalent of the Letters of Credit denominated in any Alternative Currency) shall not exceed the Revolving Credit Aggregate Commitment;
 
(iv) in the case of any Permitted Borrower, as of the proposed date of such Swing Line Advance, the principal amount of the requested Swing Line Advance to such Permitted Borrower (determined as aforesaid), plus the aggregate principal amount of any other Swing Line Advances and all other Advances then outstanding to such Permitted Borrower hereunder (including, without duplication, Revolving Credit Advances or Swing Line Advances requested to be made on such date) determined as aforesaid, plus the aggregate amount of all outstanding Letter of Credit Obligations relating to Letters of Credit issued for the account of such Permitted Borrower (using the Current Dollar Equivalent thereof for any Letters of

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  Credit denominated in any Alternative Currency) shall not exceed the applicable Permitted Borrower Sublimit;
 
(v) in the case of a Prime-based Advance, the principal amount of the initial funding of such Advance, as opposed to any refunding or conversion thereof, shall be at least One Hundred Thousand Dollars ($100,000) or, in the case of such Advances requested by any Permitted Borrowers formed under the laws of The Netherlands, the Dollar Amount as of such date of Euro 50,000, if such Dollar Amount is greater than $100,000;
 
(vi) in the case of a Eurocurrency-based Advance or a Quoted Rate Advance, the principal amount of such Advance, the principal amount of such Swing Line Advance plus the amount of any other outstanding Advance of the Swing Line to be then combined therewith having the same Applicable Interest Rate and Interest Period, if any, shall be, at least Two Hundred Fifty Thousand Dollars ($250,000), or the equivalent thereof in an Alternative Currency (or a whole multiple of One Hundred Thousand Dollars ($100,000), or the equivalent thereof in the applicable Alternative Currency), and at any one time there shall not be in effect more than (x) for Advances in Dollars, Five (5) Applicable Interest Rates and Interest Periods, and (y) for Advances in any Alternative Currency (other than eurodollars), two (2) Applicable Interest Rates and Interest Periods for each such currency;
 
      (vii) each such Request for Swing Line Advance shall be delivered to Swing Line Lender (with a copy concurrently delivered to Agent) (x) for each Advance in Dollars, by 2:00 p.m. (eastern time) (or such other time as Swing Line Lender shall specify to the applicable Borrower) on the proposed date of the Advance and (y) for each Advance in any Alternative Currency, by 10:00 a.m. (eastern time) two (2) Business Days prior to the proposed date of Advance;
          
(viii) each Request for Swing Line Advance, once delivered to Swing Line Lender, shall be irrevocable by Company and any applicable Permitted Borrower, and shall constitute and include a certification by Company and any applicable Permitted Borrower as of the date thereof that:
 

(A) both before and after such Swing Line Advance, the obligations of the Borrowers set forth in this Agreement and the Loan Documents, are valid, binding and enforceable obligations of the Borrowers and any of their Subsidiaries party thereto;

 

(B) all conditions to the making of Swing Line Advances have been satisfied (both before and after giving effect to such Advance);

 

(C) both before and after the making of such Swing Line Advance, there is no Default or Event of Default in existence; and

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  (D) both before and after such Swing Line Advance, the representations and warranties contained in this Agreement and the other Loan Documents are true and correct in all material respects.
 
  (ix)       At the option of Agent, subject to revocation by Agent at any time and from time to time and so long as Agent is Swing Line Lender, Borrower may utilize Agent’s “Sweep to Loan” automated system for obtaining Swing Line Advances and making periodic repayments. At any time during which the “Sweep to Loan” system is in effect, Swing Line Advances shall be advanced to fund borrowing needs pursuant to the terms of the Sweep Agreement. Each time a Swing Line Advance is made using the “Sweep to Loan” system, Company and the applicable Permitted Borrowers shall be deemed to have certified to Agent and Revolving Credit Lenders each of the matters set forth in clause (viii) of this Section 2.5(c). Principal and interest on Swing Line Advances requested, or deemed requested, pursuant to this Section shall be paid pursuant to the terms and conditions of the Sweep Agreement without any deduction, setoff or counterclaim whatsoever. Unless sooner paid pursuant to the provisions hereof or the provisions of the Sweep Agreement, the principal amount of the Swing Loans shall be paid in full, together with accrued interest thereon, on the Revolving Credit Maturity Date. Agent may suspend or revoke any Borrower’s privilege to use the “Sweep to Loan” system at any time and from time to time for any reason and, immediately upon any such revocation, the “Sweep to Loan” system shall no longer be available to Borrower for the funding of Swing Line Advances hereunder (or otherwise), and the regular procedures set forth in this Section 2.5 for the making of Swing Line Advances shall be deemed immediately to apply. Agent may, at its option, also elect to make Swing Line Advances upon Borrower’s telephone requests on the basis set forth in the last paragraph of Section 2.3, provided that Company and the applicable Permitted Borrowers each complies with the provisions set forth in this Section 2.5.
          
      (c) Disbursement of Swing Line Advances . Unless otherwise notified in writing by Agent promptly following each receipt of a Request for Swing Line Advance hereunder, Swing Line Lender may assume that all conditions precedent to the disbursement of such requested Swing Line Advance have been satisfied, including without limitation that no Default or Event of Default has occurred and is continuing and that the entirety of the Swing Line Maximum Amount less any outstanding Swing Line Advances is available hereunder (provided that Agent shall have no responsibility whatsoever to Swing Line Lender or to any other Lender to give any notice hereunder, except as set forth in Section 12.12 of this Agreement), and subject to the proper submission of an executed Request for Swing Line Advance by Company or a Permitted Borrower without exceptions noted in the compliance certification therein and to the other terms and conditions hereof, Swing Line Lender shall make available to Company or the applicable

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  Permitted Borrower the amount so requested, in like funds and currencies, not later than:
 
  (i)       for Prime-based Advances or Quoted Rate Advances, not later than 5:00 p.m. (eastern time) on the date of such Advance by credit to an account of Company or the applicable Permitted Borrower maintained with Swing Line Lender or with Agent or to such other account or third party as Company or the Permitted Borrower may reasonably direct in writing; and
 
  (ii) for Eurocurrency-based Advances, not later than 4:00 p.m. (the time of the office of Swing Line Lender funding such Advance) on the date of such Advance, by credit to an account of Company or the Permitted Borrower maintained with Swing Line Lender’s or Agent’s Correspondent or to such other account or third party as Company or the applicable Permitted Borrower may reasonably direct in writing.
 
  Swing Line Lender shall promptly notify Agent of any Swing Line Advance by telephone, telex or telecopier.
 
      (d) Refunding of or Participation Interest in Swing Line Advances .
          
  (i) Acting through Agent (which shall, subject to the terms hereof, comply with Swing Line Lender’s request), Swing Line Lender, at any time in its sole and absolute discretion, may on behalf of Company or the applicable Permitted Borrower (each of which hereby irrevocably directs Swing Line Lender and Agent to act on its behalf) request each of Revolving Credit Lenders (including Swing Line Lender in its capacity as a Revolving Credit Lender) to make an Advance of the Revolving Credit to each of Company and/or the applicable Permitted Borrowers, for each Permitted Currency in which Swing Line Advances are outstanding to such party, in an amount (in the applicable Permitted Currency, determined in accordance with Section 2.11(b) hereof) equal to such Revolving Credit Lender’s Revolving Credit Percentage of the principal amount of the aggregate Swing Line Advances outstanding in each Permitted Currency to each such party on the date such notice is given (the “Refunded Swing Line Advances”); provided however that Swing Line Advances which are carried at the Quoted Rate or the Eurocurrency-based Rate which are converted to Revolving Credit Advances at the request of Swing Line Lender at a time when no Default or Event of Default has occurred and is continuing, shall not be subject to Section 11.1 and no losses, costs or expenses may be assessed by Swing Line Lender against any Borrower or other Revolving Credit Lenders as a consequence of such conversion. In the case of each Refunded Swing Line Advance outstanding in Dollars, the applicable Advance of the Revolving Credit used to refund such Swing Line Advance shall be a Prime-based Advance. In the case of each Refunded Swing Line Advance outstanding in any Alternative Currency, the applicable Advance of the Revolving Credit used to refund such Swing

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  Line Advance shall be an Advance in the applicable Alternative Currency, with an Interest Period of one month (or any lesser number of days selected by Agent in consultation with Revolving Credit Lenders). In connection with the making of any such Refunded Swing Line Advances or the purchase of a participation interest in Swing Line Advances under Section 2.5(e)(ii) hereof, Swing Line Lender shall retain its claim against Company or the applicable Permitted Borrower for any unpaid interest or fees in respect thereof. Unless any of the events described in Section 9.1(j) hereof shall have occurred (in which event the procedures of subparagraph (ii) of this Section 2.5(e) shall apply) and regardless of whether the conditions precedent set forth in this Agreement to the making of an Advance of the Revolving Credit are then satisfied, but subject to Section 2.5(e)(iii), each Revolving Credit Lender shall make the proceeds of its Advance of the Revolving Credit available to Agent for the benefit of Swing Line Lender at the office of Agent specified in Section 2.4(a) hereof prior to 11:00 a.m. Detroit time (for Domestic Advances) on the Business Day next succeeding the date such notice is given, and, in the case of any Eurocurrency-based Advance, prior to 2:00 p.m. Detroit time on the third Business Day following the date such notice is given, in each case in immediately available funds in the applicable Permitted Currency. The proceeds of such Advances of the Revolving Credit shall be promptly delivered by Agent to Swing Line Lender for application to repay the Refunded Swing Line Advances in accordance with the terms and conditions of this Agreement.
 
      (ii) If, prior to the making of an Advance of the Revolving Credit pursuant to subparagraph (i) of this Section 2.5(e), one of the events described in Section 9.1(j) hereof shall have occurred, each Revolving Credit Lender will, on the date such Advance of the Revolving Credit was to have been made, purchase from Swing Line Lender an undivided participating interest in each Refunded Swing Line Advance in an amount equal to its Revolving Credit Percentage of such Refunded Swing Line Advance. Each Revolving Credit Lender within the time periods specified in Section 2.5(e)(i) hereof, as applicable, shall immediately transfer to Agent for the benefit of Swing Line Lender, in immediately available funds in the applicable Permitted Currency of such Swing Line Advance, the amount of its participation and upon receipt thereof Swing Line Lender will deliver to such Revolving Credit Lender a participation certificate evidencing such participation.
          
(iii) Each Revolving Credit Lender’s obligation to make Advances of the Revolving Credit and to purchase participation interests in accordance with clauses (i) and (ii) of this Section 2.5(e) shall be absolute and unconditional and shall not be affected by any circumstance, including, without limitation, (i) any set-off, counterclaim, recoupment, defense or other right which such Revolving Credit Lender may have against Swing Line Lender, any Borrower or any other Person for any reason

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whatsoever; (ii) the occurrence or continuance of any Default or Event of Default; (iii) any adverse change in the condition (financial or otherwise) of Company, any Permitted Borrower or any other Person; (iv) any breach of this Agreement by Company, any Permitted Borrower or any other Person; (v) any inability of Company or the Permitted Borrowers to satisfy the conditions precedent to borrowing set forth in this Agreement on the date upon which such Advance is to be made or such participating interest is to be purchased; (vi) the termination of the Revolving Credit Aggregate Commitment hereunder; or (vii) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. If any Revolving Credit Lender does not make available to Agent or Swing Line Lender, as applicable the amount required pursuant to clause (i) or (ii) above, as the case may be, Agent or Swing Line Lender, as the case may be, shall be entitled to recover such amount on demand from such Revolving Credit Lender, together with interest thereon for each day from the date of non-payment until such amount is paid in full (x) for the first two (2) Business Days such amount remains unpaid, at the Federal Funds Effective Rate for Domestic Advances and for any other Advances, Agent’s marginal cost (including the cost of maintaining any required reserves or deposit insurance and of any fees, penalties, overdraft charges or other costs or expenses incurred by Agent as a result of such failure to deliver funds hereunder) of carrying such amount and (y) thereafter, at the rate of interest then applicable to such Swing Line Advances. The obligation of any Revolving Credit Lender to make available its pro rata portion of the amounts required pursuant to clause (i) or (ii) above shall not be affected by the failure of any other Revolving Credit Lender to make such amounts available, and no Revolving Credit Lender shall have any liability to Company or any Permitted Borrower, Agent, Swing Line Lender, or any other Revolving Credit Lender or any other Person for another Revolving Credit Lender’s failure to make the amounts required under clause (i) or (ii) available.

Notwithstanding the foregoing, however, no Revolving Credit Lender shall be required to make any Revolving Credit Advance to refund a Swing Line Advance or to purchase a participation in a Swing Line Advance (including without limitation any Swing Line Advance funded under the “Sweep to Loan” system) if at least two (2) Business Days prior to the making of such Swing Line Advance by Swing Line Lender, the officers of Swing Line Lender immediately responsible for matters concerning this Agreement shall have received written notice from Agent or any Revolving Credit Lender that Swing Line Advances should be suspended based on the occurrence and continuance of a Default or an Event of Default and stating that such notice is a “notice of default”; provided, however that the obligation of Revolving Credit Lenders to make such Revolving Credit Advances or to purchase such participations shall be reinstated upon the date which such Default or Event of Default has been waived by the requisite Lenders.

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      2.6 Prime-based Interest Payments . Interest on the unpaid balance of all Prime-based Advances of the Revolving Credit and all Swing Line Advances carried at the Prime-based Rate from time to time outstanding shall accrue from the date of such Advance to the Revolving Credit Maturity Date (and until paid), at a per annum interest rate equal to the Prime-based Rate, and shall be payable in immediately available funds (a) with respect to Swing Line Advances, quarterly commencing on the first day of the calendar quarter next succeeding the calendar quarter during which the initial Swing Line Advance is made and on the first day of each calendar quarter thereafter, and (b) with respect to Advances of the Revolving Credit, quarterly commencing on the first day of the calendar quarter next succeeding the calendar month during which the initial Advance of the Revolving Credit is made and on the first day of each calendar quarter thereafter. Interest accruing at the Prime-based Rate shall be computed on the basis of a 360 day year and assessed for the actual number of days elapsed, and in such computation effect shall be given to any change in the interest rate resulting from a change in the Prime-based Rate on the date of such change in the Prime-based Rate.

      2.7 Eurocurrency-based Interest Payments and Quoted Rate Interest Payments.

      (a) Interest on each Eurocurrency-based Advance of the Revolving Credit and all Swing Line Advances carried at the Eurocurrency-based Rate shall accrue at its Applicable Interest Rate and shall be payable in immediately available funds on the last day of the Interest Period applicable thereto (and, if any Interest Period shall exceed three months, then on the last Business Day of the third month of such Interest Period, and at three month intervals thereafter). Interest accruing at the Eurocurrency-based Rate shall be computed on the basis of a 360 day year (except that any such Advances made in Sterling or any other Alternative Currency with respect to which applicable law or market custom so requires shall be calculated based on a 365 day year, or as otherwise required under applicable law or market custom) and assessed for the actual number of days elapsed from the first day of the Interest Period applicable thereto to but not including the last day thereof. Interest due on a Eurocurrency-based Advance made in an Alternative Currency shall be paid in such Alternative Currency.
          
(b) Interest on each Quoted Rate Advance of the Swing Line shall accrue at its Quoted Rate and shall be payable in immediately available funds on the last day of the Interest Period applicable thereto. Interest accruing at the Quoted Rate shall be computed on the basis of a 360 day year (except that any such Advances made in any Alternative Currency with respect to which applicable law or market custom so requires shall be calculated based on a 365 day year, or as otherwise required under applicable law or market custom) and assessed for the actual number of days elapsed from the first day of the Interest Period applicable thereto to, but not including the last day thereof.
 
(c) If the basis of accrual of interest or fees expressed in this Agreement with respect to the National Currency Unit of a Participating Member State shall be inconsistent with any convention or practice in the London interbank market or other applicable interbank market, as the case may be, for the basis of accrual of interest or fees with respect to the Euro, such convention or practice shall replace

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such expressed basis, effective as of and from the date on which such country becomes a Participating Member State; provided that if any Eurocurrency-based Advance in the currency of such country is outstanding immediately prior to such date, such replacement shall take effect, with respect to such Advance, at the end of the then current Interest Period.

      2.8 Interest Payments on Conversions . Notwithstanding anything to the contrary in the preceding sections, all accrued and unpaid interest on any Advance converted pursuant to Section 2.3 hereof shall be due and payable in full on the date such Advance is converted.

      2.9 Interest on Default . In the event and so long as any Event of Default shall exist after giving effect to any applicable grace or cure periods, in the case of any Event of Default under Sections 9.1(a), 9.1(b) or 9.1(j), immediately upon the occurrence thereof (and without the requirement of any notice or demand), in the case of all other Events of Default, upon written notice from the Required Revolving Credit Lenders, interest shall be payable daily (a) on all Eurocurrency-based Advances of the Revolving Credit, Swing Line Advances carried at the Eurocurrency-based Rate and Quoted Rate Advances from time to time outstanding at a per annum rate equal to the Applicable Interest Rate plus three percent (3%) for the remainder of the then existing Interest Period, if any, (b) with respect to Prime-based Advances from time to time outstanding, at a per annum rate equal to the Prime-based Rate plus three percent (3%), and (c) with respect to Eurocurrency-based Advances thereof in any Alternative Currency from time to time outstanding, (i) at a per annum rate calculated by Agent, whose determination shall be conclusive absent manifest error, on a daily basis, equal to three percent (3%) above the interest rate per annum at which one (1) day deposits (or, if such amount due remains unpaid for more than three (3) Business Days, then for such other period of time as Agent may elect which shall in no event be longer than six (6) months) in the relevant eurocurrency in the amount of such overdue payment due to Agent are offered by Agent’s Eurocurrency Lending Office for the applicable period determined as provided above, or (ii) if at any such time such deposits are not offered by the Eurocurrency Lending Office, then at a rate per annum equal to three percent (3%) above the rate determined by Agent to be its aggregate marginal cost (including the cost of maintaining any required reserves or deposit insurance) of carrying the amount of such Eurocurrency-based Advance.

      2.10       Optional Prepayment . Company or the Permitted Borrowers may prepay all or part of the outstanding balance of any Prime-based Advance(s) of the Revolving Credit at any time, provided that the amount of any partial prepayment shall be at least One Million Dollars ($1,000,000) and, after giving effect to any such partial prepayment, the aggregate balance of Prime-based Advance(s) of the Revolving Credit remaining outstanding, if any, shall be at least Five Million Dollars ($5,000,000). Subject to Section 11.1 hereof, Company or the Permitted Borrowers may prepay all or part of any Eurocurrency-based Advance (subject to not less than two (2) Business Days’ notice to Agent) provided that the amount of any such partial prepayment shall be at least One Million Dollars ($1,000,000), or the Current Dollar Equivalent thereof in an Alternative Currency, and, after giving effect to any such partial prepayment, the unpaid portion of such Advance which is refunded or converted under Section 2.3 hereof shall be at least Fifteen

45



  Million Dollars ($15,000,000) or the Current Dollar Equivalent thereof in an Alternative Currency.
 
      (b) Company or the Permitted Borrowers may prepay all or part of the outstanding balance of any Swing Line Advance carried at the Prime-based Rate at any time, provided that, unless the “Sweep to Loan” system shall be in effect hereunder, the amount of any partial prepayment shall be at least Twenty Five Thousand Dollars ($25,000) and, after giving effect to any such partial prepayment, the aggregate balance of such Swing Line Advances remaining outstanding, if any, shall be at least One Hundred Thousand Dollars ($100,000), or, in the case of any Swing Line Advances outstanding of any Permitted Borrowers formed under the laws of The Netherlands, the Dollar Amount of Euro 50,000, if such Dollar Amount is greater than $100,000. Subject to Section 11.1 hereof, Company may prepay all or part of any Swing Line Advances carried at the Eurocurrency-based Rate or Quoted Rate (subject to not less than two (2) Business Days’ notice to Swing Line Lender and Agent) only on the last day of the Interest Period therefor, provided that the amount of any such partial payment shall be at least Twenty Five Thousand Dollars ($25,000) and, after giving effect to any such partial prepayment, the unpaid portion of such Advance which is refunded or converted under Section 2.5(c) hereof shall be at least Two Hundred Fifty Thousand Dollars ($250,000).
          
(c) Any prepayment made in accordance with this Section shall be subject to Section 11.1 hereof, but otherwise without premium, penalty or prejudice to the right to readvance under the terms of this Agreement.

      2.11 Determination, Denomination and Redenomination of Alternative Currency Advances . Whenever, pursuant to any provision of this Agreement:

      (a) an Advance of the Revolving Credit or a Swing Line Advance is initially funded, as opposed to any refunding or conversion thereof, in an Alternative Currency, the amount to be advanced hereunder will be the equivalent in such Alternative Currency of the Dollar Amount of such Advance;
          
(b) an existing Advance of the Revolving Credit or a Swing Line Advance denominated in an Alternative Currency is to be refunded, in whole or in part, with an Advance denominated in the same Alternative Currency, the amount of the new Advance shall be continued in the amount of the Alternative Currency so refunded;
 
(c) an existing Advance of the Revolving Credit denominated in an Alternative Currency is to be converted, in whole or in part, to an Advance denominated in another Alternative Currency, the amount of the new Advance shall be that amount of the Alternative Currency of the new Advance which may be purchased, using the most favorable spot exchange rate determined by Agent to be available to it for the sale of Dollars for such other Alternative Currency at approximately 11:00 a.m. (Detroit time) two (2) Business Days prior to the last day of the

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  Eurocurrency Interest Period applicable to the existing Advance, with the Dollar Amount of the existing Advance, or portion thereof being converted; and
          
      (d) an existing Advance of the Revolving Credit denominated in an Alternative Currency is to be converted, in whole or in part, to an Advance denominated in Dollars, the amount of the new Advance shall be the Dollar Amount of the existing Advance, or portion thereof being converted (determined as aforesaid).

      2.12 Prime-based Advance in Absence of Election or Upon Default . If, (a) as to any outstanding Eurocurrency-based Advance of the Revolving Credit, or any Swing Line Advance carried at the Eurocurrency-based Rate, Agent has not received payment of all outstanding principal and accrued interest on the last day of the Interest Period applicable thereto, or does not receive a timely Request for Advance meeting the requirements of Section 2.3 or 2.5(c) hereof with respect to the refunding or conversion of such Advance, or (b) if any Advance denominated in an Alternative Currency or any deemed Advance under Section 3.6 hereof in respect of a Letter of Credit denominated in an Alternative Currency cannot be refunded or made, as the case may be, in such Alternative Currency by virtue of Section 11.3 hereof, or (c) subject to Section 2.9 hereof, if on such day a Default or an Event of Default shall have occurred and be continuing, then the principal amount thereof which is not then prepaid in the case of a Eurocurrency-based Advance shall, absent a contrary election of the Required Revolving Credit Lenders, be converted automatically to a Prime-based Advance and Agent shall thereafter promptly notify Company of said action. If a Eurocurrency-based Advance converted hereunder is payable in an Alternative Currency, the Prime-based Advance shall be in an amount equal to the Dollar Amount of such Eurocurrency-based Advance at such time and Agent and Revolving Credit Lenders shall use said Prime-based Advance to fund payment of the Alternative Currency obligation, all subject to the provisions of Section 2.14 hereof. Company and the Permitted Borrowers, if applicable, shall reimburse Agent and Revolving Credit Lenders on demand for any costs incurred by Agent or any of Revolving Credit Lenders, as applicable, resulting from the conversion pursuant to this Section 2.12 of Eurocurrency-based Advances payable in an Alternative Currency to Prime-based Advances.

      2.13 Revolving Credit Facility Fee . From the Restatement Date to the Revolving Credit Maturity Date, the Company and the Domestic Permitted Borrowers shall pay to Agent, for distribution to Revolving Credit Lenders (as set forth below), a Revolving Credit Facility Fee determined by multiplying the Applicable Fee Percentage per annum times the Revolving Credit Aggregate Commitment then applicable under Section 2.15 hereof (whether used or unused) then in effect computed on a daily basis. The Revolving Credit Facility Fee shall be payable quarterly in arrears commencing July 1, 2007 (in respect of the prior calendar quarter or portion thereof), and on the first day of each calendar quarter thereafter and on the Revolving Credit Maturity Date, and shall be computed on the basis of a year of three hundred sixty (360) days and assessed for the actual number of days elapsed. Whenever any payment of the Revolving Credit Facility Fee shall be due on a day which is not a Business Day, the date for payment thereof shall be extended to the next Business Day. Upon receipt of such payment Agent shall make prompt payment to each Revolving Credit Lender of its share of the Revolving Credit Facility Fee based upon its respective Revolving Credit Percentage.

      2.14 Currency Appreciation; Mandatory Reduction of Indebtedness.

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      (a) Revolving Credit Aggregate Commitment . If at any time and for any reason, the aggregate principal amount of all Advances of the Revolving Credit hereunder to Company and to the Permitted Borrowers made in Dollars and the aggregate Current Dollar Equivalent of all Advances of the Revolving Credit outstanding hereunder to Company and to the Permitted Borrowers in any Alternative Currency as of such time, plus the aggregate principal amount of Swing Line Advances outstanding hereunder as of such time (determined as aforesaid), plus the aggregate Letter of Credit Obligations of Company and the Permitted Borrowers which shall be outstanding (based on the Dollar Amount of any Letters of Credit denominated in Dollars and the Current Dollar Equivalent of any Letters of Credit denominated in any Alternative Currency), as of such time exceeds the Revolving Credit Aggregate Commitment (as used in this clause (a), the “Excess”), Company and the Permitted Borrowers shall:
          
  (i)       immediately repay that portion of such Indebtedness then carried as a Prime-based Advance, if any, by the Dollar Amount of such Excess, and/or reduce any pending request for an Advance in Dollars on such day by the Dollar Amount of the Excess, to the extent thereof; and
 
  (ii) on the last day of each Interest Period of any Eurocurrency-based Advance outstanding as of such time, until the necessary reductions of Indebtedness under this Section 2.14(a) have been fully made, repay the Indebtedness carried in such Advances and/or reduce any requests for refunding or conversion of such Advances submitted (or to be submitted) by Company or the applicable Permitted Borrower in respect of such Advances, by the amount in Dollars or the applicable Alternative Currency, as the case may be, of the Excess, to the extent thereof.
 
  Compliance with this Section 2.14(a) shall be tested on the last day of each Interest Period in effect from time to time hereunder and may be tested on any other basis satisfactory to Agent in its sole discretion, provided that, so long as no Default or Event of Default has occurred and is continuing, at any time while the aggregate Advances of the Revolving Credit available to be borrowed hereunder (based on the Revolving Credit Aggregate Commitment then in effect) equal or exceed Fifty Million Dollars ($50,000,000), compliance with this Section 2.14(a) shall be tested as of the last day of each calendar quarter. Notwithstanding the foregoing, upon the occurrence and during the continuance of any Default or Event of Default, or if any Excess remains after recalculating said Excess based on ninety-five percent (95%) of the Current Dollar Equivalent of any Advances or Letters of Credit denominated in Alternative Currencies (and one hundred percent (100%) of any Advances or Letters of Credit denominated in Dollars), Company and the Permitted Borrowers shall be obligated immediately to reduce the foregoing Indebtedness hereunder by an amount sufficient to eliminate such Excess.
 
  Notwithstanding the foregoing, upon the occurrence and during the continuance of any Default or Event of Default, or if any Excess remains after recalculating

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  said Excess based on ninety-five percent (95%) of the Dollar Amount of any such Advances or Letter of Credit Obligations denominated in Alternate Currencies and one hundred percent (100%) of any such Advances or Letter of Credit Obligations denominated in Dollars, the Foreign Borrowers shall be obligated immediately to reduce the foregoing Indebtedness hereunder by an amount sufficient to eliminate such Excess.
 
      (b) Permitted Borrower Sublimit . If at any time and for any reason with respect to any Permitted Borrower, the aggregate principal amount (tested in the manner set forth in clause (a) above) of all Advances of the Revolving Credit and of the Swing Line outstanding hereunder to such Permitted Borrower, plus the Letter of Credit Obligations under any Letters of Credit to or for the account of such Permitted Borrower (tested in the manner set forth in clause (a) above), which Advances and Letters of Credit are made or issued, or to be made or issued, in Dollars and ninety percent (90%) of the aggregate Current Dollar Equivalent of all such Advances and Letter of Credit Obligations for the account of such Permitted Borrower in any Alternative Currency as of such time, exceeds the applicable Permitted Borrower Sublimit (as used in this clause (b), the “Excess”), then in each case, such Permitted Borrower shall
          
  (i)       immediately repay that portion of the Indebtedness outstanding to such Permitted Borrower then carried as a Prime-based Advance, if any, by the Dollar Amount of such Excess, and/or reduce on such day any pending request for an Advance in Dollars submitted by such Permitted Borrower by the Dollar Amount of such Excess, to the extent thereof; and
 
  (ii) on the last day of each Interest Period of any Eurocurrency-based Advance outstanding to such Permitted Borrower as of such time, until the necessary reductions of Indebtedness under this Section 2.14(b) have been fully made, repay such Indebtedness carried in such Advances and/or reduce any requests for refunding or conversion of such Advances submitted (or to be submitted) by such Permitted Borrower in respect of such Advances, by the amount in Dollars or the applicable Alternative Currency, as the case may be, of such Excess, to the extent thereof.

Provided that no Default or Event of Default has occurred and is continuing, each Permitted Borrower’s compliance with this Section 2.14(b) shall be tested as of the last day of each calendar quarter or, upon the written request of Company from time to time, as of the last day of each calendar month, provided Company furnishes Agent with current monthly financial statements complying with the requirements set forth in subparagraphs (i) and (ii) of Section 7.3(c) hereof. Upon the occurrence and during the continuance of any Default or Event of Default, compliance with this Section 2.14(b) shall be tested on a daily or other basis satisfactory to Agent in its sole discretion.

      2.15 Optional Reduction or Termination of Revolving Credit Aggregate Commitment . Provided that no Default or Event of Default has occurred and is continuing, Company may upon at least five (5) Business Days’ prior written notice to Agent, permanently reduce the Revolving

49


Credit Aggregate Commitment in whole at any time, or in part from time to time, without premium or penalty, provided that: (i) each partial reduction of the Revolving Credit Aggregate Commitment shall be in an aggregate amount equal to Twenty Million Dollars ($20,000,000) or a larger integral multiple of One Million Dollars ($1,000,000); (ii) each reduction shall be accompanied by the payment of the Revolving Credit Facility Fee, if any, accrued to the date of such reduction; (iii) Company or any Permitted Borrower, as applicable, shall prepay in accordance with the terms hereof the amount, if any, by which the aggregate unpaid principal amount of Advances (using the Current Dollar Equivalent of any such Advance outstanding in any Alternative Currency) of the Revolving Credit, plus the aggregate principal amount of Swing Line Advances outstanding hereunder (using the Current Dollar Equivalent of any such Advance outstanding in an Alternative Currency), plus the aggregate undrawn amount of outstanding Letters of Credit (using the Current Dollar Equivalent thereof for any Letters of Credit denominated in any Alternative Currency), plus the unreimbursed amount of any draws under any Letters of Credit (determined as aforesaid), exceeds the amount of the Revolving Credit Aggregate Commitment as so reduced, together with interest thereon to the date of prepayment; (iv) if the termination or reduction of the Revolving Credit Aggregate Commitment requires the prepayment of a Eurocurrency-based Advance or a Quoted Rate Advance, the termination or reduction may be made only on the last Business Day of the then current Interest Period applicable to such Eurocurrency-based Advance or such Quoted Rate Advance; and (v) no reduction shall reduce the Revolving Credit Aggregate Commitment to an amount which is less than the aggregate undrawn amount of any Letters of Credit outstanding at such time. Reductions of the Revolving Credit Aggregate Commitment and any accompanying prepayments of Advances of the Revolving Credit shall be distributed by Agent to each Revolving Credit Lender in accordance with such Revolving Credit Lender’s Revolving Credit Percentage thereof, and will not be available for reinstatement by or readvance to Company or any Permitted Borrower, and any accompanying prepayments of Advances of the Swing Line shall be distributed by Agent to Swing Line Lender and will not be available for reinstatement by or readvance to Company. Any reductions of the Revolving Credit Aggregate Commitment hereunder shall reduce each Revolving Credit Lender’s portion thereof proportionately (based on the applicable Revolving Credit Percentages), and shall be permanent and irrevocable. Any payments made pursuant to this Section shall be applied first to outstanding Prime-based Advances under the Revolving Credit, next to Swing Line Advances carried at the Prime-based Rate, next to Eurocurrency-based Advances of the Revolving Credit and then to Swing Line Advances carried at the Eurocurrency-based Rate or the Quoted Rate.

      2.16 Extensions of Revolving Credit Maturity Date . (a) Provided that no Default or Event of Default has occurred and is continuing, Company may, by written notice to Agent and each Revolving Credit Lender (which notice shall be irrevocable and which shall not be deemed effective unless actually received by Agent and each Revolving Credit Lender) prior to April 30 but not before March 31st of each year, request that Revolving Credit Lenders extend the then applicable Revolving Credit Maturity Date to a date that is one year later than the Revolving Credit Maturity Date then in effect (such request, a “Request”).

      (a)       Each Revolving Credit Lender shall, within 30 days of receipt of such request, notify Agent in writing whether such Revolving Credit Lender consents to the extension of the Revolving Credit Maturity Date, such consent to be in the sole discretion of such Revolving Credit Lender. If any Revolving Credit Lender does

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  not so notify Agent of its decision within such 30 day period, such Revolving Credit Lender shall be deemed to have not consented to such request of the Borrower.
 
      (b) Agent shall promptly notify Company whether Revolving Credit Lenders have consented to such request. If Agent does not so notify Company within 30 days of Agent’s receipt such Request, Agent shall be deemed to have notified Company that Revolving Credit Lenders have not consented to Company’s request.
          
(c) Each Revolving Credit Lender which elects not to extend the Revolving Credit Maturity Date or fails to so notify Agent of such consent (a “Non-Consenting Lender”) hereby agrees that if any other Revolving Credit Lender or financial institution acceptable to Company and Agent offers to purchase such Non- Consenting Lender’s Revolving Credit Percentage of the Revolving Credit Aggregate Commitment within 180 days after receipt of the related Request for a purchase price equal to the sum of all amounts then owing with respect to the outstanding Advances (and participations in any Swing Line Advances or any Letters of Credit) and all other amounts accrued for the account of such Non- Consenting Lender, such Non-Consenting Lender will promptly assign, sell and transfer all of its right, title, interest and obligations with respect to the foregoing to such other Revolving Credit Lender or financial institution pursuant to and on the terms specified in the form of Assignment Agreement attached hereto as Exhibit E. Before assigning to a financial institution other than a Revolving Credit Lender pursuant to this clause (d), each Revolving Credit Lender that has elected to extend the Revolving Credit Maturity Date (a “Consenting Lender”) shall have the right, but not any obligation, pro rata with all other Consenting Lenders which elect to purchase a pro rata share of such non-consenting Revolving Credit Lender’s Revolving Credit Percentage of the Revolving Credit Aggregate Commitment (and participations in Swing Line Advances and Letters of Credit) to purchase each such Non-Consenting Lender’s Revolving Credit Percentage thereof pursuant to this clause (d). The Consenting Lenders which elect to exercise their purchase options hereunder shall by mutual agreement determine the amount of each Non-Consenting Lender’s Revolving Credit Percentage of the Revolving Credit Aggregate Commitment being purchased by each Consenting Lender, provided that if there is any dispute among the Consenting Lenders such purchase shall be based upon a pro rata sharing of each Non-Consenting Lender’s Revolving Credit Percentage thereof. Only if the Consenting Lenders have determined not to purchase all of the Non-Consenting Lender’s Revolving Credit Aggregate Commitment may financial institutions other than a Consenting Lender then purchase such Non-Consenting Lender’s Revolving Credit Aggregate Commitment.
 
(d) Except as set forth in subparagraph (f) hereof, notwithstanding anything herein to the contrary, the Revolving Credit Maturity Date will not be extended unless all Revolving Credit Lenders have consented to the extension or if another Lender or

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  financial institution has purchased each such Non-Consenting Lender’s Revolving Credit Aggregate Commitment pursuant to the terms of clause (d) above.
          
      (e) In the event, after giving effect to any assignments to Consenting Lenders under Section 2.16(d) hereof or otherwise, Revolving Credit Lenders holding eighty percent (80%) or more of the Revolving Credit Percentages (the “Approving Percentages”) have consented to an extension of the Revolving Credit Maturity Date hereunder, such extension shall become effective, notwithstanding that all of Revolving Credit Lenders have failed to approve such extension in accordance with this Section 2.16, so long as Company, at least five (5) Business Days prior to the Revolving Credit Maturity Date then in effect, reduces the Revolving Credit Aggregate Commitment to an amount not greater than the product of the Approving Percentages times the Revolving Credit Aggregate Commitment then in effect and repays the Indebtedness then outstanding hereunder (and, if necessary causes any outstanding Letters of Credit to be terminated or discharged) to the extent such Indebtedness exceeds the Revolving Credit Aggregate Commitment as so reduced, such that the entire Indebtedness outstanding to the Non-Consenting Lenders shall have been paid and discharged in full. Reductions may be made without regard to the notice provisions set forth in Section 2.15 hereof, but shall otherwise comply with said Section 2.15, except that any amounts repaid by Company against the Indebtedness pursuant to this subparagraph (f) shall be first applied to the Indebtedness outstanding to the Non- Consenting Lenders still holding Indebtedness hereunder at such time, with any remaining amounts applied in accordance with Section 2.15 hereof and the Revolving Credit Percentages held by such Non-Consenting Lenders shall be reallocated to the Consenting Lenders (giving effect to any assignments, as aforesaid), pro rata, based on the Revolving Credit Percentages then in effect and Agent shall distribute to the remaining Revolving Credit Lenders a revised Schedule 1.1 reflecting such reallocated Revolving Credit Percentages.

      2.17 Revolving Credit Optional Increase . Provided that no Default or Event of Default has occurred and is continuing, and provided that the Borrowers have not previously elected to terminate the Revolving Credit Aggregate Commitment, Borrowers may request that the Revolving Credit Aggregate Commitment be increased in an aggregate amount (for all such Requests under this Section 2.17 not to exceed the Revolving Credit Optional Increase, subject, in each case, to the other terms and requirements of this Agreement and to the satisfaction concurrently with or prior to the date of each such request of the following conditions:

      (a)       The Borrowers shall have delivered to Agent a written request for such increase, specifying the amount of Revolving Credit Optional Increase thereby requested (each such request, a “Request for Increase”); provided, however that in the event the Borrowers have previously delivered a Request for Increase pursuant to this Section 2.17, Borrowers may not deliver a subsequent Request for Increase until all the conditions to effectiveness of such first Request for Increase have been fully satisfied hereunder (or such Request for Increase has been withdrawn), and Borrowers may not submit more than three (3) Requests for Increases hereunder;

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      (b) a lender or lenders meeting the requirements of Section 13.8(c) hereof and acceptable to the Borrowers, Agent and Issuing Lender (including, for the purposes of this Section 2.17, any existing Lender which agrees to increase its commitment hereunder, the “New Lender(s)”) shall have become a party to this Agreement by executing and delivering a New Lender Addendum for a minimum amount (including for the purposes of this Section 2.17, the existing commitment of any existing Revolving Credit Lender) for each such New Lender of Fifteen Million Dollars ($15,000,000) and an aggregate amount for all such New Lenders of that portion of the then available Revolving Credit Optional Increase covered by the applicable Request, provided, however that each New Lender shall remit to Agent funds in an amount equal to its Revolving Credit Percentage (after giving effect to this Section 2.17) of all Advances of the Revolving Credit then outstanding, such sums to be reallocated among and paid to the existing Revolving Credit Lenders based upon the new Revolving Credit Percentages as determined below;
          
(c) Borrowers (i) shall have paid to Agent for distribution to the existing Revolving Credit Lenders, as applicable, all interest, fees (including the Revolving Credit Facility Fee and the Letter of Credit Fees) and other amounts, if any, accrued to the effective date of such increase and any breakage fees attributable to the reduction (prior to the last day of the applicable Interest Period) of any outstanding Eurocurrency-based Advances, calculated on the basis set forth in Section 11.1 hereof as though Borrower has prepaid such Advances and (ii) shall have paid to each New Lender a special letter of credit fee on the Letters of Credit outstanding on the effective date of such increase, calculated on the basis of the Letter of Credit Fees which would be applicable to such Letters of Credit if issued on the date of such increase, for the period from the effective date of such increase to the expiration date of such Letters of Credit;
 
(d) the Borrowers shall have executed and delivered to Agent new Revolving Credit Notes payable to each of the New Lenders in the face amount of each such New Lender’s Revolving Credit Percentage of the Revolving Credit Aggregate Commitment (after giving effect to this Section 2.17) and, if applicable, renewal and replacement Revolving Credit Notes payable to each of the existing Revolving Credit Lenders in the face amount of each such Revolving Credit Lender’s Revolving Credit Percentage of the Revolving Credit Aggregate Commitment (after giving effect to this Section 2.17), each of such Revolving Credit Notes to be substantially in the form specified by this Agreement, and dated as of the effective date of such increase (with appropriate insertions relevant to such Notes and acceptable to the applicable Revolving Credit Lender, including the New Lenders);
 
(e) th

 
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