Exhibit 10.2





**INDICATES MATERIAL THAT WAS OMITTED AND FOR WHICH CONFIDENTIAL
TREATMENT WAS REQUESTED. ALL SUCH OMITTED MATERIAL WAS FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.


Exhibit 10.2




EXECUTION COPY




$150,000,000.00 REVOLVING CREDIT FACILITY




AMENDED AND RESTATED CREDIT AGREEMENT




by and among




GSI COMMERCE SOLUTIONS, INC.




and




THE LENDERS PARTY HERETO




and




PNC BANK, NATIONAL ASSOCIATION, As Administrative Agent




and




PNC CAPITAL MARKETS LLC




BANK OF AMERICA SECURITIES LLC




As Joint Lead Arrangers and Joint Bookrunners




Dated as of March 24, 2010



 


 









 





TABLE OF CONTENTS




	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	1. CERTAIN DEFINITIONS
	 	 	1	 
	1.1 Certain Definitions
	 	 	1	 
	1.2 Construction
	 	 	21	 
	1.3 Accounting Principles
	 	 	21	 
	 
	 	 	 	 
	2. REVOLVING CREDIT AND SWING LOAN FACILITIES
	 	 	22	 
	2.1 Revolving Credit Commitments
	 	 	22	 
	2.2 Nature of the Lenders’ Obligations with Respect to Revolving Credit Loans
	 	 	24	 
	2.3 Fees
	 	 	25	 
	2.4 Revolving Credit Loan Requests; Swing Loan Requests
	 	 	25	 
	2.5 Making Revolving Credit Loans and Swing Loans; Presumptions by the Administrative Agent;
Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans
	 	 	26	 
	2.6 Notes
	 	 	28	 
	2.7 Use of Proceeds
	 	 	28	 
	2.8 Letter of Credit Subfacility
	 	 	29	 
	2.9 Utilization of Commitments in Optional Currencies
	 	 	36	 
	2.10 Currency Repayments
	 	 	38	 
	2.11 Optional Currency Amounts
	 	 	38	 
	 
	 	 	 	 
	3. INTEREST RATES
	 	 	38	 
	3.1 Interest Rate Options
	 	 	38	 
	3.2 Interest Periods
	 	 	39	 
	3.3 Interest After Default
	 	 	40	 
	3.4 LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available
	 	 	40	 
	3.5 Selection of Interest Rate Options
	 	 	42	 
	 
	 	 	 	 
	4. PAYMENTS
	 	 	42	 
	4.1 Payments
	 	 	42	 
	4.2 Pro Rata Treatment of Lenders
	 	 	42	 
	4.3 Sharing of Payments by Lenders
	 	 	43	 
	4.4 Presumptions by Administrative Agent
	 	 	44	 
	4.5 Interest Payment Dates
	 	 	44	 
	4.6 Voluntary Prepayments; Reduction of Revolving Credit Commitments
	 	 	44	 
	4.7 Mandatory Prepayments
	 	 	46	 
	4.8 Increased Costs
	 	 	48	 
	4.9 Taxes
	 	 	49	 
	4.10 Indemnity
	 	 	51	 
	4.11 Settlement Date Procedures
	 	 	52	 
	4.12 Interbank Market Presumption
	 	 	52	 
	4.13 Judgment Currency
	 	 	52	 






 


i 









 





	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	5. REPRESENTATIONS AND WARRANTIES
	 	 	53	 
	5.1 Representations and Warranties
	 	 	53	 
	5.2 Updates to Schedules
	 	 	57	 
	 
	 	 	 	 
	6. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT
	 	 	57	 
	6.1 First Loans and Letters of Credit
	 	 	58	 
	6.2 Each Loan or Letter of Credit
	 	 	59	 
	 
	 	 	 	 
	7. COVENANTS
	 	 	59	 
	7.1 Affirmative Covenants
	 	 	59	 
	7.2 Negative Covenants
	 	 	62	 
	7.3 Reporting Requirements
	 	 	67	 
	 
	 	 	 	 
	8. DEFAULT
	 	 	69	 
	8.1 Events of Default
	 	 	69	 
	8.2 Consequences of Event of Default
	 	 	72	 
	 
	 	 	 	 
	9. THE ADMINISTRATIVE AGENT
	 	 	73	 
	9.1 Appointment and Authority
	 	 	73	 
	9.2 Rights as a Lender
	 	 	74	 
	9.3 Exculpatory Provisions
	 	 	74	 
	9.4 Reliance by Administrative Agent
	 	 	75	 
	9.5 Delegation of Duties
	 	 	75	 
	9.6 Resignation of Administrative Agent
	 	 	75	 
	9.7 Non-Reliance on Administrative Agent and Other Lenders
	 	 	76	 
	9.8 Administrative Agent’s Fee
	 	 	77	 
	9.9 Authorization to Release Collateral and Guarantors
	 	 	77	 
	9.10 No Reliance on Administrative Agent’s Customer Identification Program
	 	 	77	 
	 
	 	 	 	 
	10. MISCELLANEOUS
	 	 	77	 
	10.1 Modifications, Amendments or Waivers
	 	 	77	 
	10.2 No Implied Waivers; Cumulative Remedies
	 	 	78	 
	10.3 Expenses; Indemnity; Damage Waiver
	 	 	78	 
	10.4 Holidays
	 	 	80	 
	10.5 Notices; Effectiveness; Electronic Communication
	 	 	81	 
	10.6 Severability
	 	 	82	 
	10.7 Duration; Survival
	 	 	82	 
	10.8 Successors and Assigns
	 	 	82	 
	10.9 Confidentiality
	 	 	85	 
	10.10 Counterparts; Integration; Effectiveness
	 	 	86	 
	10.11 Choice of Law; Submission to Jurisdiction; Waiver of Venue; Service of Process; Waiver of Jury Trial
	 	 	86	 
	10.12 USA Patriot Act Notice
	 	 	88	 





 


ii 









 





LIST OF SCHEDULES AND EXHIBITS




	 	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 1.1(A)

	 	-
	 	PRICING GRID
	 
	 	 	 	 
	SCHEDULE 1.1(B)

	 	-
	 	COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES
	 
	 	 	 	 
	SCHEDULE 1.1(P)

	 	-
	 	PERMITTED LIENS
	 
	 	 	 	 
	SCHEDULE 2.8

	 	-
	 	EXISTING LETTERS OF CREDIT
	 
	 	 	 	 
	SCHEDULE 5.1(a)

	 	-
	 	QUALIFICATIONS TO DO BUSINESS
	 
	 	 	 	 
	SCHEDULE 5.1(b)

	 	-
	 	SUBSIDIARIES
	 
	 	 	 	 
	SCHEDULE 5.1(e)

	 	-
	 	MATERIAL LITIGATION
	 
	 	 	 	 
	SCHEDULE 5.1(n)

	 	-
	 	ENVIRONMENTAL DISCLOSURES
	 
	 	 	 	 
	SCHEDULE 6.1(a)

	 	-
	 	OPINION OF COUNSEL
	 
	 	 	 	 
	SCHEDULE 7.1(c)

	 	-
	 	INSURANCE REQUIREMENTS RELATING TO COLLATERAL
	 
	 	 	 	 
	SCHEDULE 7.2(a)

	 	-
	 	PERMITTED INDEBTEDNESS
	 
	 	 	 	 
	SCHEDULE 7.2(d)

	 	-
	 	EXISTING INVESTMENTS
	 
	 	 	 	 
	SCHEDULE 8.1(j)

	 	-	 	EXISTING 5% SHAREHOLDERS
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT 1.1(A)

	 	-
	 	ASSIGNMENT AND ASSUMPTION AGREEMENT
	 
	 	 	 	 
	EXHIBIT 1.1(G)

	 	-
	 	GUARANTOR JOINDER
	 
	 	 	 	 
	EXHIBIT 1.1(N)(1)

	 	-
	 	REVOLVING CREDIT NOTE
	 
	 	 	 	 
	EXHIBIT 1.1(N)(2)

	 	-
	 	SWING LOAN NOTE
	 
	 	 	 	 
	EXHIBIT 2.1

	 	-
	 	LENDER JOINDER
	 
	 	 	 	 
	EXHIBIT 2.4

	 	-
	 	LOAN REQUEST
	 
	 	 	 	 
	EXHIBIT 2.8

	 	-
	 	EXISTING LETTERS OF CREDIT
	 
	 	 	 	 
	EXHIBIT 2.4(b)

	 	-
	 	SWING LOAN REQUEST
	 
	 	 	 	 
	EXHIBIT 7.3(c)

	 	-
	 	QUARTERLY COMPLIANCE CERTIFICATE





 


 









 





AMENDED AND RESTATED CREDIT AGREEMENT




THIS AMENDED AND RESTATED CREDIT AGREEMENT (as hereafter amended, the “Agreement”) is
dated as of March 24, 2010, and is made by and among GSI COMMERCE SOLUTIONS, INC., a Pennsylvania
corporation (the “Borrower”), each of the GUARANTORS (as hereinafter defined), the LENDERS
(as hereinafter defined), and PNC BANK, NATIONAL ASSOCIATION, in its capacity as Administrative
Agent for the Lenders under this Agreement.



BACKGROUND




The Parties hereto entered into a Credit Agreement dated as of January 11, 2008 (the
“Original Agreement”), whereby the Lenders agreed to make available to the Borrower a
$75,000,000.00 revolving credit facility on the terms and conditions set forth in the Original
Agreement. On or about May 14, 2008, the amount of such revolving credit facility was increased to
$90,000,000.00 pursuant to Section 2.1(b) of the Original Agreement. The Borrower has
requested that certain terms of the Original Agreement be amended, and the parties hereto have
agreed to amend and restate the Original Agreement in its entirety as follows:



1. CERTAIN DEFINITIONS.




1.1 Certain Definitions. In addition to words and terms defined elsewhere in this
Agreement, the following words and terms shall have the following meanings, respectively, unless
the context hereof clearly requires otherwise:



Administrative Agent means PNC Bank, National Association, and its successors and
assigns, in its capacity as agent for the Lenders.



Administrative Agent’s Fee has the meaning specified in Section 9.8
[Administrative Agent’s Fee].



Administrative Agent’s Letter has the meaning specified in Section 9.8
[Administrative Agent’s Fee].



Affiliate means as to any Person, any other Person (a) which directly or indirectly
controls, is controlled by, or is under common control with such Person, (b) which beneficially
owns or holds 15% or more of any class of the voting or other equity interests of such Person, or
(c) 15% or more of any class of voting interests or other equity interests of which is beneficially
owned or held, directly or indirectly, by such Person.



Agreement has the meaning given to such term in the introductory paragraph.



Anti-Terrorism Laws means any Laws relating to terrorism or money laundering,
including Executive Order No. 13224, the USA Patriot Act, the Laws comprising or implementing the
Bank Secrecy Act, and the Laws administered by the United States Treasury Department’s Office of
Foreign Asset Control (as any of the foregoing Laws may from time to time be amended,
renewed, extended, or replaced).


 


 









 





Applicable Commitment Fee Rate means the percentage rate per annum based on the
Leverage Ratio then in effect according to the pricing grid on Schedule 1.1(A) below the
heading “Commitment Fee.”



Applicable Letter of Credit Fee Rate means the percentage rate per annum based on the
Leverage Ratio then in effect according to the pricing grid on Schedule 1.1(A) below the
heading “LIBOR Rate Spread.”



Applicable Margin means as applicable:



(a) the percentage spread to be added to the Base Rate applicable to Revolving Credit Loans
under the Base Rate Option and Swing Loans based on the Leverage Ratio then in effect according to
the pricing grid on Schedule 1.1(A) below the heading “Base Rate Spread”, or



(b) the percentage spread to be added to the LIBOR Rate applicable to Revolving Credit Loans
under the LIBOR Rate Option based on the Leverage Ratio then in effect according to the pricing
grid on Schedule 1.1(A) below the heading “LIBOR Rate Spread”.



Approved Fund means any fund that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course of business and
that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or
an Affiliate of an entity that administers or manages a Lender.



Assignment and Assumption means an assignment and assumption entered into by a Lender
and an assignee permitted under Section 10.8 [Successors and Assigns], in substantially the
form of Exhibit 1.1(A).



Authorized Officer means, with respect to any Loan Party, the Chief Executive Officer,
President, Chief Financial Officer, Treasurer or Assistant Treasurer of such Loan Party or such
other individuals, designated by written notice to the Administrative Agent from the Borrower,
authorized to execute notices, reports and other documents on behalf of the Loan Parties required
hereunder. The Borrower may amend such list of individuals from time to time by giving written
notice of such amendment to the Administrative Agent.



Base Rate means, for any day, a fluctuating per annum rate of interest equal to the
highest of (a) the Federal Funds Open Rate, plus 0.5% per annum, and (b) the Prime Rate,
and (c) the Daily LIBOR Rate, plus 1.0% per annum. Any change in the Base Rate (or any
component thereof) shall take effect at the opening of business on the day such change occurs.



Base Rate Option means the option of the Borrower to have Loans bear interest at the
rate and under the terms set forth in Section 3.1(a)(i) [Revolving Credit Base Rate
Option].



Borrower has the meaning specified in the introductory paragraph.


 


- 2 -









 





Borrower Equity Interests has the meaning specified in Section 5.1(b)
[Subsidiaries and Owners; Investment Companies].



Borrowing Date means, with respect to any Loan, the date for the making thereof or the
renewal or conversion thereof at the same or to a different Interest Rate Option, which shall be a
Business Day.



Borrowing Tranche means specified portions of Loans outstanding as follows: (a) any
Loans to which a LIBOR Rate Option applies which become subject to the same Interest Rate Option
under the same Loan Request by the Borrower and which have the same Interest Period and which are
denominated either in Dollars or in the same Optional Currency shall constitute one Borrowing
Tranche, and (b) all Loans to which a Base Rate Option applies shall constitute one Borrowing
Tranche.



Business Day means any day other than a Saturday or Sunday or a legal holiday on which
commercial banks are authorized or required to be closed for business in Pittsburgh, Pennsylvania
and (a) if the applicable Business Day relates to any Loan to which the LIBOR Rate Option applies,
such day must also be a day on which dealings are carried on in the London interbank market, (b)
with respect to advances or payments of Loans or any other matters relating to Loans denominated in
an Optional Currency, such day also shall be a day on which dealings in deposits in the relevant
Optional Currency are carried on in the applicable interbank market, and (c) with respect to
advances or payments of Loans denominated in an Optional Currency, such day shall also be a day on
which all applicable banks into which Loan proceeds may be deposited are open for business and
foreign exchange markets are open for business in the principal financial center of the country of
such currency.



Cash Collateralize means, with respect to Letter of Credit Obligations, that the
Borrower shall deposit in a non-interest bearing account with the Administrative Agent, as cash
collateral for its Obligations under the Loan Documents, an amount equal to the Letter of Credit
Obligations, and with respect to Section 4.7(c), the amount required under such Section.



Cash Equivalents means, as to any Person, (a) securities issued or directly and fully
guaranteed or insured by the United States or any agency or instrumentality thereof (provided that
the full faith and credit of the United States is pledged in support thereof) having maturities of
not more than one year from the date of acquisition, (b) time deposits and certificates of deposit
with maturities of not more than one year from the date of acquisition by such Person of any
commercial bank having, or which is the principal banking subsidiary of a bank holding company
organized under the laws of the United States, any state thereof, the District of Columbia or any
foreign jurisdiction having capital, surplus and undivided profits aggregating in excess of
$200,000,000, (c) repurchase obligations with a term of not more than 30 days for underlying
securities of the types described in clause (a) above entered into with any bank meeting the
qualifications specified in clause (b) above, (d) investments in money market funds substantially
all of whose assets are comprised of securities of the types described in clauses (a) through (c)
above (including each of the Blackrock money market funds currently utilized by the Borrower) and
(e) demand deposit accounts maintained in the ordinary course of business.


 


- 3 -









 





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



CIP Regulations has the meaning given to such term in Section 9.10 [No
Reliance on Administrative Agent’s Customer Identification Program]



Closing Date means the Business Day on which the Borrower first satisfies all of the
conditions set forth in Section 6.1 [First Loans and Letters of Credit] not otherwise
waived by the Administrative Agent.



Code means the Internal Revenue Code of 1986, as the same may be amended or
supplemented from time to time, and any successor statute of similar import, and the rules and
regulations thereunder, as from time to time in effect.



Collateral means the collateral under the Collateral Documents.



Collateral Documents has the meaning given to such term in Section 5.1(k)
[Liens in the Collateral].



Commitment means as to any Lender the aggregate of its Revolving Credit Commitment
and, in the case of the Administrative Agent, its Swing Loan Commitment, and Commitments
means the aggregate of the Revolving Credit Commitments and Swing Loan Commitment of all of the
Lenders.



Commitment Fee has the meaning specified in Section 2.3(a) [Commitment Fees].



Compliance Certificate has the meaning specified in Section 7.3(c)
[Certificate of the Borrower].



Complying Lender means any Lender which is not a Non-Complying Lender.



Computation Date has the meaning specified in Section 2.9(a).



Consolidated Adjusted EBITDA means, for any period of determination, Consolidated
EBITDA for such period plus (or minus, if negative), with respect to any Guarantor
acquired during such period, EBITDA of such Guarantor for such period prior to such acquisition
(whether positive or negative), provided that (a) if the aggregate amount of EBITDA
to be so included in any period equals or exceeds fifteen percent (15%) of Consolidated EBITDA for
such period, then any such EBITDA to be so included shall have been audited or otherwise verified
and validated by a Person unaffiliated with the Borrower acceptable to the Required Lenders in its
reasonable discretion, (b) if the aggregate amount of EBITDA to be so included in any period is
less than fifteen percent (15%) of Consolidated EBITDA for such period, then such EBITDA to be so
included shall be in amount, detail, historical presentation, analysis, and otherwise, satisfactory
to the Required Lenders in their reasonable discretion; and (c) any



 


- 4 -









 






adjustments to any such EBITDA to be so included shall be subject to approval of the Required
Lenders.



Consolidated EBITDA for any period of determination means (in each case, of the Loan
Parties for such period determined and consolidated in accordance with GAAP) (a) the sum of (i) net
income, depreciation, amortization, non-cash stock-based compensation expense, non-cash investment,
goodwill or other intangible impairment charges, interest expense and income tax expense, (ii) any
expenses directly resulting from GAAP treatment of earn-out liabilities incurred in connection with
any acquisition of a Guarantor and the payment of such liabilities during such period of
determination, (iii) uncapitalized expenses paid to unrelated third parties and uncapitalized
integration expenses incurred during such period in connection with the acquisition of any
Guarantor during such period to the extent that documentation for and other evidence of the
incurrence and purpose of such expenses are reasonably satisfactory to the Administrative Agent in
amounts not exceeding the Max Expense Add Back for each such acquisition, and (iv) the expense
resulting from any upward adjustment in inventory valuation directly related to an acquisition of a
Guarantor occurring in such period of determination, minus (b) (i) non-cash credits to net
income, (ii) the amount, if any, included in clause (a) attributable in such period to Persons
which have been divested during such period or which are the subject of written agreements
providing for their divestiture, which amount, and method of calculating such amount, shall be
reasonably satisfactory to the Administrative Agent, (iii) any income directly resulting from GAAP
treatment of earn-out liabilities incurred in connection with any acquisition of a Guarantor and
the payment of such liabilities during such period of determination, and (iv) any downward
adjustment in inventory valuation directly related to an acquisition of a Guarantor occurring in
such period of determination.



Consolidated Net Worth means at any time the Loan Parties’ assets minus the Loan
Parties’ liabilities, all determined on a consolidated basis in accordance with GAAP.



Daily LIBOR Rate means, for any day, the rate per annum determined by the
Administrative Agent by dividing (a) the Published Rate by (b) a number equal to 1.00 minus
the LIBOR Reserve Percentage on such day.



Delinquent Lender has the meaning specified in Section 4.3.



Dollar, Dollars, U.S. Dollars and the symbol $ means lawful money of the
United States of America.



Dollar Equivalent means, with respect to any amount of any currency, the Equivalent
Amount of such currency expressed in Dollars.



Dollar Equivalent Revolving Facility Usage means at any time the sum of the Dollar
Equivalent amount of Revolving Credit Loans then outstanding, the Dollar Equivalent amount of Swing
Loans then outstanding, and the Dollar Equivalent amount of Letters of Credit Outstanding.



Domestic Subsidiary means a Subsidiary of a Loan Party organized under the laws of the
United States or one of the states or territories thereof.


 


- 5 -









 





Drawing Date has the meaning specified in Section 2.8(c)(i) [Disbursements,
Reimbursement].



EBITDA means, for any period for any Person, net income plus interest expense,
depreciation, amortization, income tax expense and other non-cash charges to net income acceptable
to Required Lenders, minus non-cash credits to net income, all for such period and for such
Person, determined in accordance with GAAP.



Environmental Laws means all applicable federal, state, local, tribal, territorial and
foreign Laws (including common law), constitutions, statutes, treaties, regulations, rules,
ordinances and codes and any consent decrees, settlement agreements, judgments, orders, directives,
policies or programs issued by or entered into with an Official Body pertaining or relating to:
(a) pollution or pollution control; (b) protection of human health from exposure to regulated
substances; or the environment; (c) protection of the environment and/or natural resources;
employee safety in the workplace; (d) the presence, use, management, generation, manufacture,
processing, extraction, treatment, recycling, refining, reclamation, labeling, packaging, sale,
transport, storage, collection, distribution, disposal or release or threat of release of regulated
substances; (e) the presence of contamination; (f) the protection of endangered or threatened
species; and (g) the protection of environmentally sensitive areas.



Equity Interests has the meaning given to such term in Section 5.1(b)
[Subsidiaries and Owners; Investment Companies].



Equivalent Amount means, at any time, as determined by the Administrative Agent (which
determination shall be conclusive absent manifest error), with respect to an amount of any currency
(the “Reference Currency”) which is to be computed as an equivalent amount of another
currency (the “Equivalent Currency”): (a) if the Reference Currency and the Equivalent
Currency are the same, the amount of such Reference Currency, or (b) if the Reference Currency and
the Equivalent Currency are not the same, the amount of such Equivalent Currency converted from
such Reference Currency at the Administrative Agent’s spot selling rate (based on the market rates
then prevailing and available to the Administrative Agent) for the sale of such Equivalent Currency
for such Reference Currency at a time determined by the Administrative Agent on the second Business
Day immediately preceding the event for which such calculation is made.



Equivalent Currency has the meaning specified in the definition of Equivalent Amount.



ERISA means the Employee Retirement Income Security Act of 1974, as the same may be
amended or supplemented from time to time, and any successor statute of similar import, and the
rules and regulations thereunder, as from time to time in effect.



ERISA Affiliate means, at any time, any trade or business (whether or not
incorporated) under common control with the Borrower and are treated as a single employer under
Section 414 of the Code.



ERISA Event means (a) a reportable event (under Section 4043 of ERISA and regulations
thereunder) with respect to a Pension Plan; (b) a withdrawal by the Borrower or any



 


- 6 -









 






ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in
which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or
partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification
that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate,
the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the
commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an
event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the
imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate.



ERISA Group means, at any time, the Borrower and all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under common control and
all other entities which, together with the Borrower, are treated as a single employer under
Section 414 of the Internal Revenue Code.



Event of Default means any of the events described in Section 8.1 [Events of
Default] and referred to therein as an “Event of Default.”



Excluded Taxes means, with respect to the Administrative Agent, any Lender, the
Issuing Lender or any other recipient of any payment to be made by or on account of any obligation
of the Borrower hereunder (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction
(or any political subdivision thereof) under the Laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable
lending office is located, (b) any branch profits taxes imposed by the United States of America or
any similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the
case of a Foreign Lender, any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party hereto (or designates a new lending office)
or is attributable to such Foreign Lender’s failure or inability (other than as a result of a
Change in Law) to comply with Section 4.9(e) [Status of Lenders], except to the extent that
such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new
lending office (or assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 4.9(a) [Payment Free of Taxes].



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



Expiration Date means March 24, 2013.



Federal Funds Effective Rate for any day means the rate per annum (based on a year of
360 days and actual days elapsed and rounded upward to the nearest 1/100 of 1%) announced by the
Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of
the rates on overnight federal funds transactions arranged by federal



 


- 7 -









 






funds brokers on the previous trading day, as computed and announced by such Federal Reserve
Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and
announces the weighted average it refers to as the “Federal Funds Effective Rate” as of the date of
this Agreement; provided, if such Federal Reserve Bank (or its successor) does not announce
such rate on any day, the “Federal Funds Effective Rate” for such day shall be the Federal Funds
Effective Rate for the last day on which such rate was announced.



Federal Funds Open Rate for any day means the rate per annum (based on a year of 360
days and actual days elapsed) which is the daily federal funds open rate as quoted by ICAP North
America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for that day opposite
the caption “OPEN” (or on such other substitute Bloomberg Screen that displays such rate), or as
set forth on such other recognized electronic source used for the purpose of displaying such rate
as selected by the Administrative Agent (for purposes of this definition an “Alternate
Source”) or if such rate for such day does not appear on the Bloomberg Screen BTMM (or any
substitute screen) or any Alternate Source, or if there shall at any time, for any reason, no
longer exist a Bloomberg Screen BTMM (or any substitute screen) or any Alternate Source, a
comparable replacement rate determined by the Administrative Agent at such time (which
determination shall be conclusive absent manifest error); provided however, that if such day is not
a Business Day, the Federal Funds Open Rate for such day shall be the “open” rate on the
immediately preceding Business Day. If and when the Federal Funds Open Rate changes, the rate of
interest with respect to any amount to which the Federal Funds Open Rate applies will change
automatically without notice to the Borrower, effective on the date of any such change.



Fixed Charge Coverage Ratio means the ratio of Consolidated EBITDA to Fixed Charges.



Fixed Charges means, for any period of determination, the sum of cash interest
expense, cash income taxes, scheduled principal installments on Indebtedness and cash dividends, in
each case of the Borrower and its Subsidiaries for such period determined and consolidated in
accordance with GAAP.



Foreign Subsidiary means a Subsidiary of a Loan Party which is not a Domestic
Subsidiary.



Foreign Lender means any Lender that is organized under the Laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes. For purposes of this
definition, the United States of America, each State thereof and the District of Columbia shall be
deemed to constitute a single jurisdiction.



GAAP means generally accepted accounting principles as are in effect from time to
time, subject to the provisions of Section 1.3 [Accounting Principles], and applied on a
consistent basis both as to classification of items and amounts.



Guarantor means each of the parties to this Agreement which is designated as a
“Guarantor” on the signature page hereof and each other Person which joins this Agreement as a
Guarantor after the date hereof.


 


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Guarantor Joinder means a joinder by a Person as a Guarantor under the Loan Documents
in the form of Exhibit 1.1(G).



Guaranty of any Person means any obligation of such Person guaranteeing or in effect
guaranteeing any liability or obligation of any other Person in any manner, whether directly or
indirectly, including any agreement to indemnify or hold harmless any other Person, any performance
bond or other suretyship arrangement and any other form of assurance against loss, except
endorsement of negotiable or other instruments for deposit or collection in the ordinary course of
business.



Guaranty Agreement means the Continuing Agreement of Guaranty and Suretyship executed
and delivered by each of the Guarantors.



Increasing Lender has the meaning specified in Section 2.1(b) [Increase in
Revolving Credit Commitments].



Indebtedness means, as to any Person at any time and without duplication, any and all
indebtedness, obligations or liabilities (whether matured or unmatured, liquidated or unliquidated,
direct or indirect, absolute or contingent, or joint or several) of such Person for or in respect
of: (a) borrowed money, (b) amounts raised under or liabilities in respect of any note purchase or
acceptance credit facility, (c) reimbursement obligations (contingent or otherwise) under any
letter of credit, and the net value of any obligation under any currency swap agreement, interest
rate swap, cap, collar or floor agreement or other interest rate management device, (d) any other
transaction (including forward sale or purchase agreements, capitalized leases and conditional
sales agreements) having the commercial effect of a borrowing of money entered into by such Person
to finance its operations or capital requirements (but not including trade payables and accrued
expenses incurred in the ordinary course of business other than trade payables which are either or
both (i) represented by a promissory note or other evidence of indebtedness and/or (ii) are more
than ninety (90) days past due and are not being diligently contested in good faith), or (e) any
Guaranty of Indebtedness for borrowed money; provided that for purposes of this Agreement
in cases where GAAP reporting permits or requires a valuation of any Indebtedness at less than the
principal amount outstanding, the amount of any Indebtedness shall be determined by the principal
amount thereof outstanding.



Indemnified Taxes means Taxes other than Excluded Taxes.



Indemnitee has the meaning specified in Section 10.3(b) [Indemnification by
the Borrower].



Information means all information received from the Loan Parties or any of their
Subsidiaries relating to the Loan Parties or any of such Subsidiaries or any of their respective
businesses, other than any such information that is available to the Administrative Agent, any
Lender or the Issuing Lender on a non-confidential basis prior to disclosure by the Loan Parties or
any of their Subsidiaries, provided that, in the case of information received from the Loan Parties
or any of their Subsidiaries after the date of this Agreement, such information is clearly
identified at the time of delivery as confidential.


 


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Insolvency Proceeding means with respect to any Person, (a) a case, action or
proceeding with respect to such Person (i) before any court or any other Official Body under any
bankruptcy, insolvency, reorganization or other similar Law now or hereafter in effect, or (ii) for
the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
(or similar official) of any Loan Party or otherwise relating to the liquidation, dissolution,
winding-up or relief of such Person, or (b) any general assignment for the benefit of creditors,
composition, marshaling of assets for creditors, or other, similar arrangement in respect of such
Person’s creditors generally or any substantial portion of its creditors; undertaken under any Law.



Intercompany Subordination Agreement means a subordination agreement among the Loan
Parties for the benefit of the Administrative Agent and the Lenders, in form and substance
satisfactory to the Administrative Agent.



Interest Period means the period of time selected by the Borrower in connection with
(and to apply to) any election permitted hereunder by the Borrower to have Revolving Credit Loans
bear interest under the LIBOR Rate Option. Subject to the last sentence of this definition, such
period shall be one, two, three or six Months, provided that the only Interest Periods available
for Optional Currency Loans shall be one Month. Such Interest Period shall commence on the
effective date of such Interest Rate Option, which shall be (a) the Borrowing Date if the Borrower
is requesting new Loans, or (b) the date of renewal of or conversion to the LIBOR Rate Option if
the Borrower is renewing or converting to the LIBOR Rate Option applicable to outstanding Loans.
Notwithstanding the second sentence hereof: (i) any Interest Period which would otherwise end on a
date which is not a Business Day shall be extended to the next succeeding Business Day unless such
Business Day falls in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day, and (ii) the Borrower shall not select, convert to or renew an
Interest Period for any portion of the Loans that would end after the Expiration Date.



Interest Rate Hedge means an interest rate exchange, collar, cap, swap, adjustable
strike cap, adjustable strike corridor or similar agreements entered into by the Loan Parties or
their Subsidiaries in order to provide protection to, or minimize the impact upon, the Borrower,
the Guarantors and/or their Subsidiaries of increasing floating rates of interest applicable to
Indebtedness.



Interest Rate Option means any LIBOR Rate Option or Base Rate Option.



IRS means the Internal Revenue Service.



Issuing Lender means PNC Bank, in its individual capacity as the Lender which is the
issuer of Letters of Credit hereunder.



Joint Venture means a corporation, partnership, limited liability company or other
entities in which any Person other than the Loan Parties and their Subsidiaries holds, directly or
indirectly, an equity interest.



Law means any law (including common law), constitution, statute, treaty, regulation,
rule, ordinance, opinion, release, ruling, order, injunction, writ, decree, bond,



 


- 10 -









 






judgment, authorization or approval, lien or award by or settlement agreement with any
Official Body.



Lender Provided Interest Rate Hedge means an Interest Rate Hedge which is provided by
any Lender or its Affiliate and with respect to which the Administrative Agent determines: (a) is
documented in a standard International Swap Dealer Association Agreement, (b) provides for the
method of calculating the reimbursable amount of the provider’s credit exposure in a reasonable and
customary manner, and (c) is entered into for hedging (rather than speculative) purposes.



Lenders means the financial institutions named on Schedule 1.1(B) and their
respective successors and assigns as permitted hereunder, each of which is referred to herein as a
Lender. For the purpose of any Loan Document which provides for the granting of a Lien to the
Lenders or to the Administrative Agent for the benefit of the Lenders as security for the
Obligations, “Lenders” shall include any Affiliate of a Lender to which such Obligation is owed.



Letter of Credit has the meaning specified in Section 2.8(a) [Issuance of
Letters of Credit].



Letter of Credit Borrowing has the meaning specified in Section 2.8(c)(iii)
[Disbursements, Reimbursement].



Letter of Credit Fee has the meaning specified in Section 2.8(b) [Letter of
Credit Fees].



Letter of Credit Obligation means, as of any date of determination, the aggregate
amount available to be drawn under all outstanding Letters of Credit on such date (if any Letter of
Credit shall increase in amount automatically in the future, such aggregate amount available to be
drawn shall currently give effect to any such future increase) plus the aggregate
Reimbursement Obligations and Letter of Credit Borrowings on such date.



Letter of Credit Sublimit has the meaning specified in Section 2.8(a)
[Issuance of Letters of Credit].



Leverage Ratio means, as of the end of any date of determination, the ratio of (a)
consolidated Indebtedness of the Loan Parties and their Subsidiaries on such date; to (b)
Consolidated Adjusted EBITDA (i) for the four fiscal quarters then ending if such date is a fiscal
quarter end, or (ii) for the four fiscal quarters most recently ended if such date is not a fiscal
quarter end.



LIBOR Rate means (a) with respect to Dollar Loans comprising any Borrowing Tranche to
which the LIBOR Rate Option applies for any Interest Period, the interest rate per annum determined
by the Administrative Agent by dividing (the resulting quotient rounded upwards, if necessary, to
the nearest 1/100th of 1% per annum) (i) the rate of interest which appears on the Bloomberg Page
BBAM1 (or on such other substitute Bloomberg page that displays rates at which US dollar deposits
are offered by leading banks in the London interbank deposit market) or the rate which is quoted by
another source selected by the Administrative Agent which has been approved by the British Bankers’
Association as an authorized information



 


- 11 -









 






vendor for the purpose of displaying rates at which US dollar deposits are offered by leading
banks in the London interbank deposit market (an “Alternate Source”) at approximately 11:00
a.m., London time, two (2) Business Days prior to the first day of such Interest Period as the
London interbank offered rate for Dollars for an amount and having a borrowing date and a maturity
comparable to such Interest Period (or if there shall at any time, for any reason, no longer exist
a Bloomberg Page BBAM1 (or any substitute page) or any Alternate Source, a comparable replacement
rate determined by the Administrative Agent as such time (which determination shall be conclusive
absent manifest error)), by (ii) a number equal to 1.00 minus the LIBOR Rate Reserve Percentage.
Such LIBOR Rate may also be expressed by the following formula:



	 	 	 	 	 
	 

	 	London interbank offered rate quoted by Bloomberg

or appropriate successor as shown on	 	 
	LIBOR Rate =

	 	Bloomberg Page BBAM1	 	 
	 

	 	 

1.00 = LIBOR Rate Reserve Percentage
	 	 






The LIBOR Rate shall be adjusted with respect to any Loan to which the LIBOR Rate Option
applies that is outstanding on the effective date of any change in the LIBOR Rate Reserve
Percentage as of such effective date. The Administrative Agent shall give prompt notice to the
Borrower of the LIBOR Rate as determined or adjusted in accordance herewith, which determination
shall be conclusive absent manifest error; and



(b) with respect to Optional Currency Loans comprising any Borrowing Tranche to which the
LIBOR Rate Option applies for any Interest Period, the interest rate per annum determined by the
Administrative Agent by dividing (i) the rate of interest which appears on the relevant Bloomberg
Page (or, if no such quotation is available on such Bloomberg Page, on the appropriate such other
substitute Bloomberg page that displays rates at which the relevant Optional Currency deposits are
offered by leading banks in the London interbank deposit market) or the rate which is quoted by
another source selected by the Administrative Agent which has been approved by the British Bankers’
Association as an authorized information vendor for the purpose of displaying such rates at which
such Optional Currency deposits are offered by leading banks in the London interbank deposit
market, at approximately 9:00 a.m., Pittsburgh time, two (2) Business Days prior to the first day
of such Interest Period for delivery on the first day of such Interest Period for a period, and in
an amount, comparable to such Interest Period and principal amount of such Borrowing Tranche
(“LIBO Rate”) by (ii) a number equal to 1.00 minus the LIBOR Rate Reserve Percentage. Such
LIBOR Rate may also be expressed by the following formula:



	 	 	 	 	 
	 

	 	LIBO Rate	 	 
	 LIBOR
Rate =

	 	 

1 – LIBOR Rate Reserve Percentage
	 	 






The LIBOR Rate shall be adjusted with respect to any LIBOR Rate Option outstanding on the
effective date of any change in the LIBOR Rate Reserve Percentage as of such effective date. The
Administrative Agent shall give prompt notice to the Borrower of the LIBOR Rate as determined or
adjusted in accordance herewith, which determination shall be conclusive absent manifest error.
The LIBOR Rate for any Loans shall be based upon the LIBOR Rate for the currency in which such
Loans are requested.


 


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LIBOR Rate Option means the option of the Borrower to have Revolving Credit Loans bear
interest at the rate and under the terms set forth in Section 3.1(a)(ii) [Revolving Credit
LIBOR Rate Option].



LIBOR Rate Reserve Percentage means the maximum percentage (expressed as a decimal
rounded upward to the nearest 1/100 of 1%) as determined by the Administrative Agent which is in
effect during any relevant period, (a) as prescribed by the Board of Governors of the Federal
Reserve System (or any successor) for determining the reserve requirements (including supplemental,
marginal and emergency reserve requirements) with respect to eurocurrency funding (currently
referred to as “Eurocurrency Liabilities”) of a member bank in such System; and (b) to be
maintained by a Lender as required for reserve liquidity, special deposit, or a similar purpose by
any governmental or monetary authority of any country or political subdivision thereof (including
any central bank), against (i) any category of liabilities that includes deposits by reference to
which a LIBOR Rate is to be determined, or (ii) any category of extension of credit or other assets
that includes Loans or Borrowing Tranches to which a LIBOR Rate applies.



Lien means any mortgage, deed of trust, pledge, lien, security interest, charge or
other encumbrance or security arrangement of any nature whatsoever, whether voluntarily or
involuntarily given, including any conditional sale or title retention arrangement, and any
assignment, deposit arrangement or lease intended as, or having the effect of, security and any
filed financing statement or other notice of any of the foregoing (whether or not a lien or other
encumbrance is created or exists at the time of the filing).



Loan Documents means this Agreement, the Administrative Agent’s Letter, the Guaranty
Agreement, the Intercompany Subordination Agreement, if any, the Notes, the Patent, Trademark and
Copyright Assignment, the Pledge Agreement, the Security Agreement, and any other instruments,
certificates or documents delivered in connection herewith or therewith.



Loan Parties means the Borrower and the Guarantors.



Loan Request has the meaning specified in Section 2.4(a) [Revolving Credit
Loan Requests].



Loans means collectively and Loan means separately all Revolving Credit Loans
and Swing Loans or any Revolving Credit Loan or Swing Loan.



Material Adverse Change means any set of circumstances or events which (a) has or
could reasonably be expected to have any material adverse effect whatsoever upon the validity or
enforceability of this Agreement or any other Loan Document, (b) is or could reasonably be expected
to be material and adverse to the business, properties, assets, financial condition, or results of
operations of the Loan Parties taken as a whole, (c) impairs or could reasonably be expected to
impair the ability of the Loan Parties taken as a whole to duly and punctually pay or perform its
Indebtedness, or (d) impairs or could reasonably be expected to impair the ability of the
Administrative Agent or any of the Lenders, to the extent permitted, to enforce their legal
remedies pursuant to this Agreement or any other Loan Document.


 


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Max Expense Add Back means, for each acquisition of a Guarantor, an amount determined
in accordance with the following:



	 	 	 
	Total Acquisition Price	 	Max Expense Add Back
	 	 	 
	less that $50,000,000.00
	 	$1,000,000.00
	 	 	 
	$50,000,000.000 or more, but less than $100,000,000.00
	 	$2,000,000.00
	 	 	 
	$100,000,000.000 or more, but less than $150,000,000.00
	 	$3,000,000.00
	 	 	 
	$150,000,000.000 or more, but less than $200,000,000.00
	 	$4,000,000.00
	 	 	 
	$200,000,000.000 or more
	 	$5,000,000.00






Month with respect to an Interest Period under the LIBOR Rate Option, means the
interval between the days in consecutive calendar months numerically corresponding to the first day
of such Interest Period. If any Interest Period begins on a day of a calendar month for which
there is no numerically corresponding day in the month in which such Interest Period is to end, the
final month of such Interest Period shall be deemed to end on the last Business Day of such final
month.



Multiemployer Plan means any employee benefit plan which is a “multiemployer plan”
within the meaning of Section 4001(a)(3) of ERISA and to which the Borrower or any member of the
ERISA Group is then making or accruing an obligation to make contributions or, within the preceding
five Plan years, has made or had an obligation to make such contributions.



New Lender has the meaning specified in Section 2.1(b)(i) [Increasing Lenders
and New Lenders].



Non-Complying Lender means any Lender that (a) has failed to fund any portion of the
Loans, participations with respect to Letters of Credit, or participations in Swing Loans required
to be funded by it hereunder within one Business Day of the date required to be funded by it
hereunder unless such failure has been cured and all interest accruing as a result of such failure
has been fully paid in accordance with the terms hereof, (b) has otherwise failed to pay over to
the Administrative Agent or any other Lender any other amount required to be paid by it hereunder
within one Business Day of the date when due, unless the subject of a good faith dispute or unless
such failure has been cured and all interest accruing as a result of such failure has been fully
paid in accordance with the terms hereof, or (c) has since the date of this Agreement been deemed
insolvent by an Official Body or become the subject of a bankruptcy, receivership, conservatorship
or insolvency proceeding.



Non-Consenting Lender has the meaning specified in Section 10.1 [Modification,
Amendments or Waivers].



Notes means, collectively, the promissory notes evidencing the Revolving Credit Loans
in the form of Exhibit 1.1(N)(1) and the Swing Loan Note.


 


- 14 -









 





Obligation means any obligation or liability of any of the Loan Parties or any of
their Subsidiaries, howsoever created, arising or evidenced, whether direct or indirect, absolute
or contingent, now or hereafter existing, or due or to become due, under or in connection with (a)
this Agreement, the Notes, the Letters of Credit, the Administrative Agent’s Letter or any other
Loan Document whether to the Administrative Agent, any of the Lenders or their Affiliates or other
persons provided for under such Loan Documents, (b) any Lender Provided Interest Rate Hedge and (c)
any Other Lender Provided Financial Service Product.



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



Order has the meaning specified in Section 2.8(i) [Liability for Acts and
Omissions].



Original Agreement has the meaning specified in the Background section.



Optional Currency means any of the following currencies: British Pounds Sterling,
Euros, Canadian Dollars, Japanese Yen, Danish Kroner, Swedish Krona, Swiss Franc, Norwegian Krone,
Australian Dollar and any other currency approved by the Administrative Agent and all of the
Lenders pursuant to Section 2.9(d) [Request for Additional Optional Currencies], and no
other currency



Original Currency has the meaning specified in Section 4.13(a).



Other Currency has the meaning specified in Section 4.13(a).



Other Lender Provided Financial Service Product means agreements or other arrangements
under which any Lender or Affiliate of a Lender provides any of the following products or services
to any of the Loan Parties: (a) credit cards, (b) debit cards, (c) purchasing and commercial
cards, (d) ACH Transactions, (e) cash management, including controlled disbursement, accounts or
services, (f) foreign currency exchange, or (g) trade finance, including trade, commercial and
documentary letters of credit.



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



Overnight Rate means for any day with respect to any Loans in an Optional Currency,
the rate of interest per annum as determined by the Administrative Agent at which overnight
deposits in the such currency, in an amount approximately equal to the amount with respect to which
such rate is being determined, would be offered for such day in the applicable offshore interbank
market.


 


- 15 -









 





Parent means GSI Commerce, Inc., a Delaware corporation.



Participant has the meaning specified in Section 10.8(d) [Participations].



Participation Advance has the meaning specified in Section 2.8(c)
[Disbursements, Reimbursement].



Patent, Trademark and Copyright Assignment means the Patent, Trademark and Copyright
Security Agreement in form and substance acceptable to the Administrative Agent executed and
delivered by each of the Loan Parties to the Administrative Agent for the benefit of the Lenders.



Payment Date means (a) the first Business Day of each fiscal quarter after the date
hereof (being the first Business Day following the Saturday closest to the end of each calendar
quarter), (b) the Expiration Date and (c) the date of any acceleration of the Loans.



Payment In Full means payment in full in cash of the Loans and other Obligations
hereunder, termination of the Commitments and expiration or termination of all Letters of Credit.



PBGC means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A
of Title IV of ERISA or any successor.



Pension Plan means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions at any times
during the immediately preceding five plan years.



Permitted Investments means:



(a) direct obligations of the United States of America or any agency or instrumentality
thereof or obligations backed by the full faith and credit of the United States of America maturing
in twelve (12) months or less from the date of acquisition;



(b) commercial paper maturing in 180 days or less rated not lower than A-1, by Standard &
Poor’s or P-1 by Moody’s Investors Service, Inc. on the date of acquisition;



(c) Cash Equivalents; and



(d) money market or mutual funds whose investments are limited to those types of investments
described in clauses (a)-(c) above.



Permitted Liens means:



(a) Liens for taxes, assessments, or similar charges, incurred in the ordinary course of
business and which are not yet due and payable;


 


- 16 -









 





(b) Pledges or deposits made in the ordinary course of business to secure payment of workmen’s
compensation, or to participate in any fund in connection with workmen’s compensation, unemployment
insurance, old-age pensions or other social security programs;



(c) Liens of mechanics, materialmen, warehousemen, carriers, or other like Liens, securing
obligations incurred in the ordinary course of business that are not yet due and payable and Liens
of landlords securing obligations to pay lease payments that are not yet due and payable or in
default;



(d) Good-faith pledges or deposits made in the ordinary course of business to secure
performance of bids, tenders, contracts (other than for the repayment of borrowed money) or leases,
not in excess of the aggregate amount due thereunder, or to secure statutory obligations, or
surety, appeal, indemnity, performance or other similar bonds required in the ordinary course of
business;



(e) Encumbrances consisting of zoning restrictions, easements or other restrictions on the use
of real property, none of which materially impairs the use of such property or the value thereof,
and none of which is violated in any material respect by existing or proposed structures or land
use;



(f) Liens, security interests and mortgages in favor of the Administrative Agent for the
benefit of the Lenders and their Affiliates securing the Obligations including Other Lender
Provided Financial Services Obligations;



(g) Liens on personal property leased by any Loan Party or Subsidiary of a Loan Party under
capital and operating leases securing obligations of such Loan Party or Subsidiary to the lessor
under such leases;



(h) Any Lien existing on the date of this Agreement and described on Schedule 1.1(P),
provided that the principal amount secured thereby is not hereafter increased, and no
additional assets become subject to such Lien;



(i) Purchase Money Security Interests on personal property; provided that the
aggregate amount of loans and deferred payments secured by such Purchase Money Security Interests
shall not exceed $10,000,000.00 (excluding for the purpose of this computation any loans or
deferred payments secured by Liens described on Schedule 1.1(P)); and



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



(A) Claims or Liens for taxes, assessments or charges due and payable and subject to interest
or penalty; provided that the applicable Loan Party maintains such reserves or other appropriate
provisions as shall be required by GAAP and pays all such taxes,



 


- 17 -









 






assessments or charges forthwith upon the commencement of proceedings to foreclose any such
Lien;



(B) Claims or Liens of mechanics, materialmen, warehousemen, carriers, or other statutory
nonconsensual Liens; or



(C) Liens resulting from final judgments or orders described in Section 8.1(f) [Final
Judgments or Orders].



Permitted Repayment has the meaning given to such term in Section 2.5(d)
[Repayment of Loans].



Person means any individual, corporation, partnership, limited liability company,
association, joint-stock company, trust, unincorporated organization, joint venture, government or
political subdivision or agency thereof, or any other entity.



Plan means at any time an employee pension benefit plan (including a multiple employer
plan, but not a Multiemployer Plan) which is covered by Title IV of ERISA or is subject to the
minimum funding standards under Section 412 of the Code and either (a) is maintained by any member
of the ERISA Group for employees of any member of the ERISA Group or (b) has at any time within the
preceding five years been maintained by any entity which was at such time a member of the ERISA
Group for employees of any entity which was at such time a member of the ERISA Group.



Pledge Agreement means the Pledge Agreement in form and substance acceptable to the
Administrative Agent executed and delivered by each of the Loan Parties and their Subsidiaries to
the Administrative Agent for the benefit of the Lenders.



PNC Bank means PNC Bank, National Association, its successors and assigns, in its
individual capacity as a Lender.



Potential Default means any event or condition which with notice or passage of time,
or both, would constitute an Event of Default.



Prime Rate means the interest rate per annum announced from time to time by the
Administrative Agent at its Principal Office as its then prime rate, which rate may not be the
lowest or most favorable rate then being charged commercial borrowers or others by the
Administrative Agent. Any change in the Prime Rate shall take effect at the opening of business on
the day such change is announced.



Principal Office means the main banking office of the Administrative Agent in
Pittsburgh, Pennsylvania.



Prior Security Interest means a valid and enforceable perfected first-priority
security interest under the Uniform Commercial Code in the Collateral which is subject only to
Permitted Liens (other than Permitted Liens described in clauses (a), (c) or (j) of such definition
to the extent such Permitted Liens are not given super priority by statute).


 


- 18 -









 





Published Rate means the rate of interest published each Business Day in The Wall
Street Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for a one
Month period (or, if no such rate is published therein for any reason, then the Published Rate
shall be the rate at which U.S. Dollar deposits are offered by leading banks in the London
Interbank deposit market for a one Month period as published in another publication selected by the
Administrative Agent.



Purchase Money Security Interest means Liens upon tangible personal property securing
loans to any Loan Party or Subsidiary of a Loan Party or deferred payments by such Loan Party or
Subsidiary for the purchase (or for the refinancing thereof) of such tangible personal property
(but for no other purpose).



Ratable Share means the proportion that a Lender’s Commitment (excluding the Swing
Loan Commitment) bears to the Commitments (excluding the Swing Loan Commitment) of all of the
Lenders. If the Commitments have terminated or expired, the Ratable Shares shall be determined
based upon the Commitments (excluding the Swing Loan Commitment) most recently in effect, giving
effect to any assignments.



Reimbursement Obligation has the meaning specified in Section 2.8(c)
[Disbursements, Reimbursement].



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



Relief Proceeding means any proceeding seeking a decree or order for relief in respect
of any Loan Party or Subsidiary of a Loan Party in a voluntary or involuntary case under any
applicable bankruptcy, insolvency, reorganization or other similar law now or hereafter in effect,
or for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator,
conservator (or similar official) of any Loan Party or Subsidiary of a Loan Party for any
substantial part of its property, or for the winding-up or liquidation of its affairs, or an
assignment for the benefit of its creditors.



Required Lenders means:



(a) If there exists fewer than three (3) Lenders, all Lenders, and



(b) If there exist three (3) or more Lenders:



(i) if there are no Loans, Reimbursement Obligations or Letter of Credit Borrowings
outstanding, Complying Lenders whose Revolving Credit Commitments aggregate at least 50.1% of the
Revolving Credit Commitments of all of the Complying Lenders, or



(ii) if there are Loans, Reimbursement Obligations or Letter of Credit Borrowings outstanding,
any group of Complying Lenders if the sum of the Loans (excluding the Swing Loans), Reimbursement
Obligations and Letter of Credit Borrowings of such Lenders then outstanding aggregates at least
50.1% of the total principal amount of all of the Loans


 


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(excluding the Swing Loans), Reimbursement Obligations and Letter of Credit Borrowings of all
of the Complying Lenders then outstanding.



Required Share has the meaning assigned to such term in Section 4.11
[Settlement Date Procedures].



Revolving Credit Commitment means, as to any Lender at any time, the amount initially
set forth opposite its name on Schedule 1.1(B) in the column labeled “Amount of Commitment
for Revolving Credit Loans,” as such Commitment is thereafter assigned or modified and
Revolving Credit Commitments means the aggregate Revolving Credit Commitments of all of the
Lenders.



Revolving Credit Loans means collectively and Revolving Credit Loan means
separately all Revolving Credit Loans or any Revolving Credit Loan made by the Lenders or one of
the Lenders to the Borrower pursuant to Section 2.1 [Revolving Credit Commitments] or
Section 2.8(c) [Disbursements, Reimbursement].



Revolving Facility Usage means at any time the sum of the outstanding Revolving Credit
Loans, the outstanding Swing Loans and the Letter of Credit Obligations.



Security Agreement means the Security Agreement in form and substance reasonably
acceptable to the Administrative Agent executed and delivered by each of the Loan Parties to the
Administrative Agent for the benefit of the Lenders.



Senior Leverage Ratio means, as of the end of any date of determination, the ratio of
(a) consolidated Indebtedness of the Loan Parties and their Subsidiaries on such date which is
secured by Lien on any of their property; to (b) Consolidated Adjusted EBITDA (i) for the four
fiscal quarters then ending if such date is a fiscal quarter end, or (ii) for the four fiscal
quarters most recently ended if such date is not a fiscal quarter end.



Settlement Date means any Business Day on which the Administrative Agent elects to
effect settlement pursuant to Section 2.5(e) [Borrowings to Repay Swing Loans].



Standard & Poor’s means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc.



Statements has the meaning specified in Section 5.1(f)(i) [Historical
Statements].



Subsidiary of any Person at any time means any corporation, trust, partnership,
limited liability company or other business entity of which 50% or more of the outstanding voting
securities or other interests normally entitled to vote for the election of one or more directors
or trustees (regardless of any contingency which does or may suspend or dilute the voting rights)
is at such time owned directly or indirectly by such Person or one or more of such Person’s
Subsidiaries.



Subsidiary Equity Interests has the meaning specified in Section 5.1(b)
[Subsidiaries and Owners; Investment Companies].


 


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Swing Loan Commitment means PNC Bank’s commitment to make Swing Loans to the Borrower
pursuant to Section 2.1(c) [Swing Loan Commitment] in an aggregate principal amount up to
$15,000,000.00.



Swing Loan Note means the Swing Loan Note of the Borrower in the form of Exhibit
1.1(N)(2) evidencing the Swing Loans, together with all amendments, extensions, renewals,
replacements, refinancings or refundings thereof in whole or in part.



Swing Loan Request has the meaning given to such term in Section 2.4(b) [Swing
Loan Request].



Swing Loans means collectively and Swing Loan means separately all Swing Loans
or any Swing Loan made by the Administrative Agent to the Borrower pursuant to Section
2.1(c) [Swing Loan Commitment] hereof.



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



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



1.2
Construction. Unless the context of this Agreement otherwise clearly requires, the
following rules of construction shall apply to this Agreement and each of the other Loan Documents:
(a) references to the plural include the singular, the plural, the part and the whole and the
words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without
limitation”; (b) the words “hereof,” “herein,” “hereunder,” “hereto” and similar terms in this
Agreement or any other Loan Document refer to this Agreement or such other Loan Document as a
whole; (c) article, section, subsection, clause, schedule and exhibit references are to this
Agreement or other Loan Document, as the case may be, unless otherwise specified; (d) reference to
any Person includes such Person’s successors and assigns; (e) reference to any agreement, including
this Agreement and any other Loan Document together with the schedules and exhibits hereto or
thereto, document or instrument means such agreement, document or instrument as amended, modified,
replaced, substituted for, superseded or restated; (f) relative to the determination of any period
of time, “from” means “from and including,” “to” means “to but excluding,” and “through” means
“through and including”; (g) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights, (h) section headings herein and in each
other Loan Document are included for convenience and shall not affect the interpretation of this
Agreement or such Loan Document, and (i) unless otherwise specified, all references herein to times
of day shall be references to Eastern Standard Time.



1.3 Accounting Principles. Except as otherwise provided in this Agreement, all
computations and determinations as to accounting or financial matters and all financial statements
to be delivered pursuant to this Agreement shall be made and prepared in accordance with GAAP
(including principles of consolidation where appropriate), and all accounting or



 


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financial terms shall have the meanings ascribed to such terms by GAAP; provided, however, that all
accounting terms used in Section 7.2 [Negative Covenants] (and all defined terms used in
the definition of any accounting term used in Section 7.2 [Negative Covenants] have the
meanings given to such terms (and defined terms) under GAAP as in effect on the date hereof applied
on a basis consistent with those used in preparing Statements referred to in Section
5.1(f)(i) [Historical Statements]. In the event of any change after the date hereof in GAAP,
and if such change would affect the computation of any of the financial covenants set forth in
Section 7.2 [Negative Covenants], then the parties hereto agree to endeavor, in good faith,
to agree upon an amendment to this Agreement that would adjust such financial covenants in a manner
that would preserve the original intent thereof, but would allow compliance therewith to be
determined in accordance with the Borrower’s financial statements at that time, provided that ,
until so amended such financial covenants shall continue to be computed in accordance with GAAP
prior to such change therein.



2. REVOLVING CREDIT AND SWING LOAN FACILITIES.




2.1 Revolving Credit Commitments.



(a) Revolving Credit Loans.



Subject to the terms and conditions hereof and relying upon the representations and warranties
herein set forth, each Lender severally agrees to make Revolving Credit Loans in either Dollars or
one or more Optional Currencies to the Borrower at any time or from time to time on or after the
date hereof to the Expiration Date; provided that after giving effect to such Loan (i) the
aggregate Dollar Equivalent amount of Loans from such Lender shall not exceed such Lender’s
Revolving Credit Commitment minus such Lender’s Ratable Share of the Dollar Equivalent
amount of the then outstanding Swing Loans and the Dollar Equivalent amount of Letter of Credit
Obligations, (ii) the Revolving Facility Usage shall not exceed the Revolving Credit Commitments;
(iii) the aggregate Dollar Equivalent amount of Loans in Optional Currencies outstanding shall not
exceed $50,000,000.00; and (iv) no Loan to which the Base Rate Option applies shall be made in an
Optional Currency. Within such limits of time and amount and subject to the other provisions of
this Agreement, the Borrower may borrow, repay and reborrow pursuant to this Section 2.1.



(b) Increase in Revolving Credit Commitments.



(i) Increasing Lenders and New Lenders. The Borrower may, at any time prior to the
second (2nd) anniversary of the Closing Date, request that (A) the current Lenders
increase their Revolving Credit Commitments (any current Lender which elects to increase its
Revolving Credit Commitment shall be referred to as an “Increasing Lender”) by giving
written request thereof to the Administrative Agent for distribution to the Lenders not less than
fifteen (15) Business Days prior to the proposed effective date of such increase, or if there are
insufficient Increasing Lenders to provide such requested increase, (B) one or more new lenders
(each a “New Lender”) join this Agreement and provide a Revolving Credit Commitment
hereunder, subject to the following terms and conditions:


 


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(1) No Obligation to Increase. No Lender shall be obligated to increase its Revolving
Credit Commitment and any increase in its Revolving Credit Commitment shall be in the sole
discretion of such Lender.



(2) Defaults. There shall exist no Events of Default or Potential Default on the
effective date of such increase after giving effect to such increase.



(3) Aggregate Revolving Credit Commitments. After giving effect to such increase, the
total Revolving Credit Commitments shall not exceed $150,000,000.00.



(4) Minimum Revolving Credit Commitments. After giving effect to such increase, the
amount of the Revolving Credit Commitments provided by each of the New Lenders and each of the
Increasing Lenders with respect to such increase shall be at least $10,000,000.00 in the aggregate;
and



(5) Resolutions; Opinion. The Loan Parties shall deliver to the Administrative Agent
on or before the effective date of such increase the following documents in a form reasonably
acceptable to the Administrative Agent: (a) certifications of their corporate secretaries with
attached resolutions certifying that the increase in the Revolving Credit Commitment has been
approved by such Loan Parties, and (b) an opinion of counsel addressed to the Administrative Agent
and the Lenders addressing the authorization and execution of the Loan Documents by, and
enforceability of the Loan Documents against, the Loan Parties.



(6) Notes. The Borrower shall execute and deliver (a) to each Increasing Lender a
replacement revolving credit Note reflecting the new amount of such Increasing Lender’s Revolving
Credit Commitment after giving effect to the increase (and the prior Note issued to such Increasing
Lender shall be deemed to be terminated), and (b) to each New Lender a revolving credit Note
reflecting the amount of such New Lender’s Revolving Credit Commitment.



(7) Approval of New Lenders. Any New Lender shall be subject to the reasonable
approval of the Administrative Agent and the Borrower.



(8) Increasing Lenders. Each Increasing Lender shall confirm its agreement to
increase its Revolving Credit Commitment pursuant to an acknowledgement in a form acceptable to the
Administrative Agent, signed by it and the Borrower and delivered to the Administrative Agent at
least three (3) Business Days before the effective date of such increase.



(9) New Lenders-Joinder. Each New Lender shall execute a lender joinder in
substantially the form of Exhibit 2.1 pursuant to which such New Lender shall join and
become a party to this Agreement and the other Loan Documents with a Revolving Credit Commitment in
the amount set forth in such lender joinder.



(10) Commitments of Lenders. The Administrative Agent shall prepare a revised
Schedule 1.1(B) to reflect the changes occasioned by the increase



 


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in Revolving Credit Commitments pursuant to this Section 2.1(b), and distribute such
revised Schedule 1.1(B) to the Borrower and the Lenders, whereupon such revised
Schedule 1.1(B), absent manifest error, shall replace the prior schedule without any
further action by any of the other parties hereto.



(ii) Treatment of Outstanding Loans and Letters of Credit.



(A) Repayment of Outstanding Loans; Borrowing of New Loans. On the effective date of
such increase, the Borrower shall repay all Loans then outstanding, subject to the Borrower’s
indemnity obligations under Section 4.10 [Indemnity]; provided that it may borrow new Loans
with a Borrowing Date on such date. Each of the Lenders shall participate in any new Loans made on
or after such date in accordance with their respective Ratable Shares after giving effect to the
increase in Revolving Credit Commitments contemplated by this Section 2.1(b).



(B) Outstanding Letters of Credit; Repayment of Outstanding Loans; Borrowing of New
Loans. On the effective date of such increase, each Increasing Lender and each New Lender (1)
will be deemed to have purchased a participation in each then outstanding Letter of Credit equal to
its Ratable Share of such Letter of Credit and the participation of each other Lender in such
Letter of Credit shall be adjusted accordingly and (2) will acquire (and will pay to the
Administrative Agent, for the account of each Lender, in immediately available funds, an amount
equal to) its Ratable Share of all outstanding Participation Advances.



(c) Swing Loan Commitment.



Subject to the terms and conditions hereof and relying upon the representations and warranties
herein set forth, and in order to facilitate loans and repayments between Settlement Dates, PNC
Bank may, at its option, cancelable at any time for any reason whatsoever, make Swing Loans to the
Borrower at any time or from time to time after the date hereof to, but not including, the
Expiration Date, in an aggregate principal amount up to but not in excess of $15,000,000.00,
provided that the aggregate principal amount of PNC Bank’s Swing Loans and the Revolving Credit
Loans of all the Lenders at any one time outstanding shall not exceed the Revolving Credit
Commitments of all the Lenders. Within such limits of time and amount and subject to the other
provisions of this Agreement, the Borrower may borrow, repay and reborrow Swing Loans pursuant to
this Section 2.1(c).



2.2 Nature of the Lenders’ Obligations with Respect to Revolving Credit Loans. Each Lender
shall be obligated to participate in each request for Revolving Credit Loans pursuant to
Section 2.4(a) [Revolving Credit Loan Requests; Swing Loan Requests] in accordance with its
Ratable Share. If at any time the aggregate Dollar Equivalent amount of any Lender’s Revolving
Credit Loans outstanding hereunder to the Borrower shall exceed its Revolving Credit Commitment
minus its Ratable Share of the Dollar Equivalent amount of the then outstanding Swing Loans
and the Dollar Equivalent amount of Letter of Credit Obligations, the Borrower shall immediately
repay such excess without demand or prior notice. The obligations of each Lender hereunder are
several. The failure of any Lender to perform its obligations hereunder shall not affect the
Obligations of the Borrower to any other party, nor



 


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shall any other party be liable for the failure of such Lender to perform its obligations
hereunder. The Lenders shall have no obligation to make Revolving Credit Loans hereunder on or
after the Expiration Date.



2.3 Fees.



(a) Commitment Fees.



Accruing from the date hereof until the Expiration Date, the Borrower agrees to pay to the
Administrative Agent for the account of each Lender according to its Ratable Share, a nonrefundable
commitment fee (the “Commitment Fee”) equal to the Applicable Commitment Fee Rate (computed
on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed)
times the average daily difference between the amount of (i) the Revolving Credit
Commitments, and (ii) the Revolving Facility Usage (and for purposes of this computation, Swing
Loans shall be deemed to be borrowed amounts under PNC Bank’s Revolving Credit Commitment)
provided, however, that any Commitment Fee accrued with respect to the Revolving
Credit Commitment of a Non-Complying Lender during the period prior to the time such Lender became
a Non-Complying Lender and unpaid at such time shall not be payable by the Borrower so long as such
Lender shall be a Non-Complying Lender except to the extent that such Commitment Fee shall
otherwise have been due and payable by the Borrower prior to such time; and provided
further that no Commitment Fee shall accrue with respect to the Revolving Credit Commitment
of a Non-Complying Lender so long as such Lender shall be a Non-Complying Lender. Subject to the
proviso in the directly preceding sentence, all Commitment Fees shall be payable in arrears on each
Payment Date.



(b) Transaction Fees.



The Borrower agrees to pay to the Administrative Agent on the Closing Date for the account of
each Lender, as consideration for such Lender’s Commitment, a nonrefundable transaction fee equal
to (i) 0.2% of an amount equal to that portion of such Lender’s Commitment on the Closing Date
equal to such Lender’s Commitment under the Original Agreement immediately prior to the Closing
Date, plus (ii) 0.3% of an amount equal to that portion of such Lender’s Commitment in excess of
such Lender’s Commitment under the Original Agreement (or, if such Lender was not a lender under
the Original Agreement, equal to such Lender’s Commitment).



2.4 Revolving Credit Loan Requests; Swing Loan Requests.



(a) Revolving Credit Loan Requests.



Except as otherwise provided herein, the Borrower may from time to time prior to the
Expiration Date request the Lenders to make Revolving Credit Loans, or renew or convert the
Interest Rate Option applicable to existing Revolving Credit Loans pursuant to Section 3.2
[Interest Periods], by delivering to the Administrative Agent, not later than 10:00 a.m., (i) three
(3) Business Days prior to the proposed Borrowing Date with respect to the making of Revolving
Credit Loans in Dollars to which the LIBOR Rate Option applies or the conversion to or the renewal
of the LIBOR Rate Option for any Loans, and four (4) Business Days prior to the proposed Borrowing
Date with respect to the making of Revolving Credit



 


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Loans in an Optional Currency or the date of conversion or renewal of the LIBOR Rate Option
for Revolving Credit Loans in Optional Currencies; and (ii) one (1) Business Day prior to either
the proposed Borrowing Date with respect to the making of a Revolving Credit Loan to which the Base
Rate Option applies or the last day of the preceding Interest Period with respect to the conversion
to the Base Rate Option for any Loan, of a duly completed request therefor substantially in the
form of Exhibit 2.4 or a request by telephone immediately confirmed in writing by letter,
facsimile or telex in such form (each, a “Loan Request”), it being understood that the
Administrative Agent may reasonably rely on the authority of any individual making such a
telephonic request without the necessity of receipt of such written confirmation. Each Loan
Request shall be irrevocable and shall specify (A) the proposed Borrowing Date, (B) the aggregate
amount of the proposed Loans (expressed in the currency in which such Loans are to be funded)
comprising each Borrowing Tranche, provided that the amount of any Borrowing
Tranche in Dollars shall be in integral multiples of $100,000.00 and not less than $1,000,000.00
for each Borrowing Tranche under the LIBOR Rate Option and not less than the lesser of $500,000.00
or the maximum amount available for Borrowing Tranches under the Base Rate Option; (C) the
currencies in which such Loans shall be funded if the Borrower is electing the LIBOR Rate Option;
(D) whether the LIBOR Rate Option or Base Rate Option shall apply to the proposed Revolving Credit
Loans comprising each Borrowing Tranche; and (E) in the case of a Borrowing Tranche to which the
LIBOR Rate Option applies, an appropriate Interest Period. Each Loan Request shall be deemed a
representation by the Borrower that it has satisfied all of the conditions for the Loan so
requested set forth in this Agreement.



(b) Swing Loan Requests.



Except as otherwise provided herein, the Borrower may from time to time prior to the
Expiration Date request PNC Bank to make Swing Loans by delivery to PNC Bank not later than 10:00
o’clock a.m. Pittsburgh time on the proposed Borrowing Date of a duly completed request therefor
substantially in the form of Exhibit 2.4(b) hereto or a request by telephone immediately
confirmed in writing by letter, facsimile or telex (each, a “Swing Loan Request”), it being
understood that PNC Bank may rely on the authority of any individual making such a telephonic
request without the necessity of receipt of such written confirmation. Each Swing Loan Request
shall be irrevocable and shall specify the proposed Borrowing Date and the principal amount of such
Swing Loan, which shall be not less than $200,000.00. Each Swing Loan Request shall be deemed a
representation by the Borrower that it has satisfied all of the conditions for the Swing Loan so
requested set forth in this Agreement.



2.5 Making Revolving Credit Loans and Swing Loans; Presumptions by the Administrative
Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans.



(a) Making Revolving Credit Loans.



Promptly after receipt by the Administrative Agent of a Loan Request pursuant to Section
2.4 [Revolving Credit Loan Requests; Swing Loan Requests], the Administrative Agent shall
notify the Lenders of its receipt of such Loan Request specifying the information provided by the
Borrower and the apportionment among the Lenders of the requested Revolving Credit Loans as
determined by the Administrative Agent in accordance with


 


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Section 2.2 [Nature of Lenders’ Obligations with Respect to Revolving Credit Loans].
Each Lender shall remit the principal amount of each Revolving Credit Loan to the Administrative
Agent in the appropriate currencies such that the Administrative Agent is able to, and the
Administrative Agent shall, to the extent the Lenders have made funds available to it for such
purpose and subject to Section 6.2 [Each Loan or Letter of Credit], fund such Revolving
Credit Loans to the Borrower in U.S. Dollars and/or Optional Currencies, as applicable, and
immediately available funds at the Principal Office prior to 2:00 p.m., on the applicable Borrowing
Date; provided that if any Lender fails to remit such funds to the Administrative
Agent in a timely manner, the Administrative Agent may elect in its sole discretion to fund with
its own funds the Revolving Credit Loans of such Lender on such Borrowing Date, and such Lender
shall be subject to the repayment obligation in Section 2.5(b) [Presumptions by the
Administrative Agent].



(b) Presumptions by the Administrative Agent.



Unless the Administrative Agent shall have received notice from a Lender prior to the proposed
date of any Revolving Credit Loan that such Lender will not make available to the Administrative
Agent such Lender’s share of such Revolving Credit Loan, the Administrative Agent may assume that
such Lender has made such share available on such date in accordance with Section 2.5(a)
[Making Revolving Credit Loans] and may, in reliance upon such assumption, make available to the
Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the
applicable Revolving Credit Loan available to the Administrative Agent, then the applicable Lender
and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the date such amount is
made available to the Borrower to but excluding the date of payment to the Administrative Agent, at
(i) in the case of a payment to be made by such Lender, the greater of the Federal Funds Effective
Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation, and (ii) in the case of a payment to be made by the Borrower, the interest
rate applicable to Revolving Credit Loans under the Base Rate Option. If such Lender pays its
share of the applicable Revolving Credit Loan to the Administrative Agent, then the amount so paid
shall constitute such Lender’s Revolving Credit Loan. Any payment by the Borrower shall be without
prejudice to any claim the Borrower may have against a Lender that shall have failed to make such
payment to the Administrative Agent.



(c) Making Swing Loans.



So long as PNC Bank elects to make Swing Loans, PNC Bank shall, after receipt by it of a Swing
Loan Request pursuant to Section 2.4(b) [Swing Loan Request], fund such Swing Loan to the
Borrower in U.S. Dollars and immediately available funds at the Principal Office prior to 3:00
o’clock p.m. Philadelphia time on the Borrowing Date.



(d) Repayment of Loans.



The Borrower shall repay the Loans together with all outstanding interest thereon on the
Expiration Date. Except as set forth in the immediate following sentence, the Borrower shall also
repay the Loans together with all outstanding interest thereon prior to any



 


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Loan Party making any principal payment on any Indebtedness for borrowed money which is
unsecured or is subordinated to the Obligations, whereupon the Commitments shall terminate.
Notwithstanding the immediately prior sentence the Loans shall not become due and payable and the
Commitments shall not terminate solely due to the payment of principal of the Parent’s 3%
Convertible Notes due 2025 solely as a result of the exercise of the repurchase option by any
holder of, or the exercise of any redemption right by the Parent with respect to, such Convertible
Notes on June 1, 2010, or other payment, redemption or purchase permitted under Section
7.2(n) [Repayment of Indebtedness], provided that the Senior Leverage Ratio is
2.0 to 1.0 or less both before and after giving effect to such payment (a “Permitted
Repayment”).



(e) Borrowings to Repay Swing Loans.



PNC Bank may, at its option, exercisable at any time for any reason whatsoever, demand
repayment of the Swing Loans, and each Lender shall make a Revolving Credit Loan in an amount equal
to such Lender’s Ratable Share of the aggregate principal amount of the outstanding Swing Loans,
plus, if PNC Bank so requests, accrued interest thereon, provided that no Lender shall be
obligated in any event to make Revolving Credit Loans in excess of its Revolving Credit Commitment.
Revolving Credit Loans made pursuant to the preceding sentence shall bear interest at the Base
Rate Option and shall be deemed to have been properly requested in accordance with Section
2.4(a) [Revolving Credit Loan Requests] without regard to any of the requirements of that
provision. PNC Bank shall provide notice to the Lenders (which may be telephonic or written notice
by letter, facsimile or telex) that such Revolving Credit Loans are to be made under this
Section 2.5(e) and of the apportionment among the Lenders, and the Lenders shall be
unconditionally obligated to fund such Revolving Credit Loans (whether or not the conditions
specified in Section 6.2 [Each Loan or Letter of Credit] are then satisfied) by the time
PNC Bank so requests, which shall not be earlier than 2:00 p.m. Philadelphia time on the Business
Day next after the date the Lenders receive such notice from PNC.



2.6 Notes. The Obligation of the Borrower to repay the aggregate unpaid principal amount
(a) of the Revolving Credit Loans made to it by each Lender, together with interest thereon, shall
be evidenced by a revolving credit Note dated the Closing Date payable to the order of such Lender
in a face amount equal to the Revolving Credit Commitment of such Lender, and (b) of the Swing
Loans made to it by PNC Bank, together with interest thereon, shall be evidenced by the Swing Loan
Note, dated the Closing Date payable to the order of PNC Bank in the face amount of $15,000,000.00.



2.7 Use of Proceeds. The proceeds of the Loans shall be used for general corporate
purposes, including working capital financing, financing capital expenditures and financing
permitted acquisitions provided that except for a Permitted Repayment made when
there exists no Event of Default or Potential Default the Borrower shall not use the proceeds of
the Loans, directly or indirectly, to pay any Indebtedness for borrowed money of any Loan Party or
any of their Subsidiaries.


 


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2.8 Letter of Credit Subfacility.



(a) Issuance of Letters of Credit.



The Borrower may at any time prior to the Expiration Date request the issuance of a letter of
credit (each a “Letter of Credit”) which may be denominated in either Dollars or an
Optional Currency on behalf of itself or another Loan Party, or the amendment or extension of an
existing Letter of Credit, by delivering or having such other Loan Party deliver to the Issuing
Lender (with a copy to the Administrative Agent) a completed application and agreement for Letters
of Credit, or request for such amendment or extension, as applicable, in such form as the Issuing
Lender may specify from time to time by no later than 10:00 a.m. at least five (5) Business Days,
or such shorter period as may be agreed to by the Issuing Lender, in advance of the proposed date
of issuance. The letters of credit issued prior to, and outstanding on, the Closing Date as
identified on Schedule 2.8 attached hereto are deemed to be Letters of Credit hereunder.
Promptly after receipt of any Letter of Credit application, the Issuing Lender shall confirm with
the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a
copy of such Letter of Credit application and if not, such Issuing Lender will provide
Administrative Agent with a copy thereof. Unless the Issuing Lender has received notice from any
Lender, Administrative Agent or any Loan Party, at least one day prior to the requested date of
issuance, amendment or extension of the applicable Letter of Credit, that one or more applicable
conditions in Section 6 [Conditions of Lending and Issuance of Letters of Credit] is not
satisfied, then, subject to the terms and conditions hereof and in reliance on the agreements of
the other Lenders set forth in this Section 2.8, the Issuing Lender or any of the Issuing
Lender’s Affiliates will issue a Letter of Credit or agree to such amendment or extension,
provided that each Letter of Credit shall in no event expire later than five (5)
Business Days prior to the Expiration Date and provided further that in no event shall (i) the
Dollar Equivalent amount of the Letter of Credit Obligations exceed, at any one time,
$30,000,000.00 (the “Letter of Credit Sublimit”) or (ii) the Dollar Equivalent amount of
the Revolving Facility Usage exceed, at any time, the Revolving Credit Commitments. Each request
by the Borrower for the issuance, amendment or extension of a Letter of Credit shall be deemed to
be a representation by the Borrower that it is in compliance with the preceding sentence and with
Section 6 [Conditions of Lending and Issuance of Letters of Credit] after giving effect to
the requested issuance, amendment or extension of such Letter of Credit. The Revolving Credit
Commitments shall be available for the issuance of stand-by, documentary and commercial letters of
credit.



Notwithstanding any other provision hereof, no Issuing Lender shall be required to issue any
Letter of Credit, if any Lender is at such time a Non-Complying Lender hereunder, unless such
Issuing Lender has entered into satisfactory arrangements with the Borrower or such Non-Complying
Lender to eliminate the Issuing Lender’s risk with respect to such Non-Complying Lender (it being
understood that the Issuing Lender would consider the Borrower providing cash collateral to the
Administrative Agent, for the benefit of the Issuing Lender, to secure the Non-Complying Lender’s
Ratable Share of the Letter of Credit a satisfactory arrangement).


 


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(b) Letter of Credit Fees.



The Borrower shall pay in Dollars (i) to the Administrative Agent for the ratable account of
the Lenders a fee (the “Letter of Credit Fee”) computed at the Applicable Letter of Credit
Fee Rate, provided that the share of such fee to which any Non-Complying Lender
would otherwise be entitled shall be payable to the Issuing Lender, and (ii) to the Issuing Lender
for its own account a fronting fee computed at 0.125% per annum (in each case computed on the basis
of a year of 360 days and actual days elapsed), which fees shall be computed on the daily average
Dollar Equivalent Letter of Credit Obligations and shall be payable quarterly in arrears on each
Payment Date following issuance of each Letter of Credit. The Borrower shall also pay in Dollars
to the Issuing Lender for the Issuing Lender’s sole account the Issuing Lender’s then in effect
customary fees and administrative expenses payable with respect to the Letters of Credit as the
Issuing Lender may generally charge or incur from time to time in connection with the issuance,
maintenance, amendment (if any), assignment or transfer (if any), negotiation, and administration
of letters of credit.



(c) Disbursements, Reimbursement.



Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the Issuing Lender a participation
in such Letter of Credit and each drawing thereunder in an amount equal to such Lender’s Ratable
Share of the maximum amount available to be drawn under such Letter of Credit and the amount of
such drawing, respectively.



(i) In the event of any request for a drawing under a Letter of Credit by the beneficiary or
transferee thereof, the Issuing Lender will promptly notify the Borrower and the Administrative
Agent thereof. Provided that it shall have received such notice, the Borrower shall reimburse
(such obligation to reimburse the Issuing Lender shall sometimes be referred to as a
“Reimbursement Obligation”) the Issuing Lender in Dollars prior to 12:00 noon, Philadelphia
time on each date that an amount is paid by the Issuing Lender under any Letter of Credit (each
such date, a “Drawing Date”) by paying to the Administrative Agent for the account of the
Issuing Lender an amount equal to the Dollar Equivalent amount so paid by the Issuing Lender. In
the event the Borrower fails to reimburse the Issuing Lender (through the Administrative Agent) for
the full Dollar Equivalent amount of any drawing under any Letter of Credit by 12:00 noon,
Philadelphia time, on the Drawing Date, the Administrative Agent will promptly notify each Lender
thereof, and the Borrower shall be deemed to have requested that Revolving Credit Loans be made by
the Lenders under the Base Rate Option to be disbursed on the Drawing Date under such Letter of
Credit, subject to the amount of the unutilized portion of the Revolving Credit Commitment and
subject to the conditions set forth in Section 6.2 [Each Loan or Letter of Credit] other
than any notice requirements. Any notice given by the Administrative Agent or Issuing Lender
pursuant to this Section 2.8(c)(i) may be oral if immediately confirmed in writing;
provided that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.



(ii) Each Lender shall upon any notice pursuant to subsection (i) make available to the
Administrative Agent for the account of the Issuing Lender an amount in Dollars and in immediately
available funds equal to its Ratable Share of the Dollar Equivalent amount of



 


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the drawing, whereupon the participating Lenders shall each be deemed to have made a Revolving
Credit Loan in Dollars under the Base Rate Option to the Borrower in that amount. If any Lender so
notified fails to make available in Dollars to the Administrative Agent for the account of the
Issuing Lender the amount of such Lender’s Ratable Share of such Dollar Equivalent amount by no
later than 2:00 p.m., Philadelphia time on the Drawing Date, then interest shall accrue on such
Lender’s obligation to make such payment, from the Drawing Date to the date on which such Lender
makes such payment (A) at a rate per annum equal to the Federal Funds Effective Rate during the
first three (3) days following the Drawing Date, and (B) at a rate per annum equal to the rate
applicable to Loans under the Base Rate Option on and after the fourth day following the Drawing
Date. The Administrative Agent and the Issuing Lender will promptly give notice (as described in
subsection (i) above) of the occurrence of the Drawing Date, but failure of the Administrative
Agent or the Issuing Lender to give any such notice on the Drawing Date or in sufficient time to
enable any Lender to effect such payment on such date shall not relieve such Lender from its
obligation under this subsection (ii).



(iii) With respect to any unreimbursed drawing that is not converted into Revolving Credit
Loans under the Base Rate Option to the Borrower in whole or in part as contemplated by subsection
(i), because of the Borrower’s failure to satisfy the conditions set forth in Section 6.2
[Each Loan or Letter of Credit] other than any notice requirements, or for any other reason, the
Borrower shall be deemed to have incurred from the Issuing Lender a borrowing (each a “Letter
of Credit Borrowing”) in Dollars equal to the Dollar Equivalent amount of such drawing. Such
Letter of Credit Borrowing shall be due and payable on demand (together with interest) and shall
bear interest at the rate per annum applicable to the Revolving Credit Loans under the Base Rate
Option. Each Lender shall make payment to the Administrative Agent for the account of the Issuing
Lender as set forth in subsection (ii) and such payment shall be deemed to be a payment in respect
of its participation in such Letter of Credit Borrowing (each a “Participation Advance”)
from such Lender in satisfaction of its participation obligation under this Section 2.8(c).



(d) Repayment of Participation Advances.



(i) Upon (and only upon) receipt by the Administrative Agent for the account of the Issuing
Lender of immediately available funds from the Borrower (A) in reimbursement of any payment made by
the Issuing Lender under the Letter of Credit with respect to which any Lender has made a
Participation Advance to the Administrative Agent, or (B) in payment of interest on such a payment
made by the Issuing Lender under such a Letter of Credit, the Administrative Agent on behalf of the
Issuing Lender will pay to each Lender, in the same funds as those received by the Administrative
Agent, the amount of such Lender’s Ratable Share of such funds, except the Administrative Agent
shall retain for the account of the Issuing Lender the amount of the Ratable Share of such funds of
any Lender that did not make a Participation Advance in respect of such payment by the Issuing
Lender.



(ii) If the Administrative Agent or the Issuing Lender is required at any time to return to
any Loan Party, or to a trustee, receiver, liquidator, custodian, or any official in any Insolvency
Proceeding, any portion of any payment made by any Loan Party to the Administrative Agent for the
account of the Issuing Lender pursuant to this Section 2.8 in reimbursement of a payment
made under the Letter of Credit or interest or fee thereon, each



 


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Lender shall, on demand of the Administrative Agent, forthwith return to the Administrative
Agent for the account of the Issuing Lender the amount of its Ratable Share of any amounts so
returned by the Administrative Agent plus interest thereon from the date such demand is made to the
date such amounts are returned by such Lender to the Administrative Agent, at a rate per annum
equal to the Federal Funds Effective Rate in effect from time to time.



(e) Documentation.



Each Loan Party agrees to be bound by the terms of the Issuing Lender’s application and
agreement for letters of credit and the Issuing Lender’s written regulations and customary
practices relating to letters of credit, though such interpretation may be different from such Loan
Party’s own. In the event of a conflict between such application or agreement and this Agreement,
this Agreement shall govern. It is understood and agreed that, except in the case of gross
negligence or willful misconduct, the Issuing Lender shall not be liable for any error, negligence
and/or mistakes, whether of omission or commission, in following any Loan Party’s instructions or
those contained in the Letters of Credit or any modifications, amendments or supplements thereto.



(f) Determinations to Honor Drawing Requests.



In determining whether to honor any request for drawing under any Letter of Credit by the
beneficiary thereof, the Issuing Lender shall be responsible only to determine that the documents
and certificates required to be delivered under such Letter of Credit have been delivered and that
they comply on their face with the requirements of such Letter of Credit.



(g) Nature of Participation and Reimbursement Obligations.



Each Lender’s obligation in accordance with this Agreement to make the Revolving Credit Loans
or Participation Advances, as contemplated by Section 2.8(c) [Disbursements,
Reimbursement], as a result of a drawing under a Letter of Credit, and the Obligations of the
Borrower to reimburse the Issuing Lender upon a draw under a Letter of Credit, shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this
Section 2.8 under all circumstances, including the following circumstances:



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



(ii) the failure of any Loan Party or any other Person to comply, in connection with a Letter
of Credit Borrowing, with the conditions set forth in Section 2.1 [Revolving Credit
Commitments], Section 2.4 [Revolving Credit Loan Requests; Swing Loan Requests],
Section 2.5 [Making Revolving Credit Loans and Swing Loans; Presumptions by the
Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans] or
Section 6.2 [Each Loan and Letter of Credit] or as otherwise set forth in this Agreement
for the making of a Revolving Credit Loan, it being acknowledged that such



 


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conditions are not required for the making of a Letter of Credit Borrowing and the obligation
of the Lenders to make Participation Advances under Section 2.8(c) [Disbursements,
Reimbursement];



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



(iv) any claim of breach of warranty that might be made by any Loan Party or any Lender
against any beneficiary of a Letter of Credit, or the existence of any claim, set-off, recoupment,
counterclaim, crossclaim, defense or other right which any Loan Party or any Lender may have at any
time against a beneficiary, successor beneficiary any transferee or assignee of any Letter of
Credit or the proceeds thereof (or any Persons for whom any such transferee may be acting), the
Issuing Lender or its Affiliates or any Lender or any other Person, whether in connection with this
Agreement, the transactions contemplated herein or any unrelated transaction (including any
underlying transaction between any Loan Party or Subsidiaries of a Loan Party and the beneficiary
for which any Letter of Credit was procured);



(v) the lack of power or authority of any signer of (or any defect in or forgery of any
signature or endorsement on) or the form of or lack of validity, sufficiency, accuracy,
enforceability or genuineness of any draft, demand, instrument, certificate or other document
presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in
connection with any Letter of Credit, or the transport of any property or provision of services
relating to a Letter of Credit, in each case even if the Issuing Lender or any of its Affiliates
has been notified thereof;



(vi) payment by the Issuing Lender or any of its Affiliates under any Letter of Credit against
presentation of a demand, draft or certificate or other document which does not comply with the
terms of such Letter of Credit;



(vii) the solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit,
or any other Person having a role in any transaction or obligation relating to a Letter of Credit,
or the existence, nature, quality, quantity, condition, value or other characteristic of any
property or services relating to a Letter of Credit;



(viii) any failure by the Issuing Lender or any of its Affiliates to issue any Letter of
Credit in the form requested by any Loan Party, unless the Issuing Lender has received written
notice from such Loan Party of such failure within three (3) Business Days after the Issuing Lender
shall have furnished such Loan Party and the Administrative Agent a copy of such Letter of Credit
and such error is material and no drawing has been made thereon prior to receipt of such notice;



(ix) any adverse change in the business, operations, properties, assets, condition (financial
or otherwise) or prospects of any Loan Party or Subsidiaries of a Loan Party;



(x) any breach of this Agreement or any other Loan Document by any party thereto;



(xi) the occurrence or continuance of an Insolvency Proceeding with respect to any Loan Party;


 


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



(xiii) the fact that the Expiration Date shall have passed or this Agreement or the
Commitments hereunder shall have been terminated; and



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



(h) Indemnity.



The Borrower hereby agrees to protect, indemnify, pay and save harmless the Issuing Lender and
any of its Affiliates that has issued a Letter of Credit from and against any and all claims,
demands, liabilities, damages, taxes, penalties, interest, judgments, losses, costs, charges and
expenses (including reasonable fees, expenses and disbursements of counsel) which the Issuing
Lender or any of its Affiliates may incur or be subject to as a consequence, direct or indirect, of
the issuance of any Letter of Credit, other than as a result of (i) the gross negligence or willful
misconduct of the Issuing Lender as determined by a final non-appealable judgment of a court of
competent jurisdiction or (ii) the wrongful dishonor by the Issuing Lender or any of Issuing
Lender’s Affiliates of a proper demand for payment made under any Letter of Credit, except if such
dishonor resulted from any act or omission, whether rightful or wrongful, of any present or future
de jure or de facto government or governmental authority or a material breach of Issuing Lender’s
obligations hereunder with respect thereto.



(i) Liability for Acts and Omissions.



As between any Loan Party and the Issuing Lender, or the Issuing Lender’s Affiliates, such
Loan Party assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by,
the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of
the foregoing, the Issuing Lender shall not be responsible for any of the following, including any
losses or damages to any Loan Party or other Person or property relating therefrom: (i) the form,
validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party
in connection with the application for an issuance of any such Letter of Credit, even if it should
in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged
(even if the Issuing Lender or its Affiliates shall have been notified thereof); (ii) the validity
or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any
such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason; (iii) the failure of the
beneficiary of any such Letter of Credit, or any other party to which such Letter of Credit may be
transferred, to comply fully with any conditions required in order to draw upon such Letter of
Credit or any other claim of any Loan Party against any beneficiary of such Letter of Credit, or
any such transferee, or any dispute between or among any Loan Party and any beneficiary of any
Letter of Credit or any such transferee; (iv) errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or
not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in
the transmission or otherwise of any document required in order to make a drawing under any such
Letter of Credit or of the proceeds thereof; (vii) the



 


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misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing
under such Letter of Credit; or (viii) any consequences arising from causes beyond the control of
the Issuing Lender or the its Affiliates, as applicable, including any act or omission of any
governmental authority, and none of the above shall affect or impair, or prevent the vesting of,
any of the Issuing Lender’s or its Affiliates rights or powers hereunder. Nothing in the preceding
sentence shall relieve the Issuing Lender from liability for the Issuing Lender’s gross negligence
or willful misconduct in connection with actions or omissions described in such clauses (i) through
(viii) of such sentence. In no event shall the Issuing Lender or its Affiliates be liable to any
Loan Party for any indirect, consequential, incidental, punitive, exemplary or special damages or
expenses (including without limitation attorneys’ fees), or for any damages resulting from any
change in the value of any property relating to a Letter of Credit.



Without limiting the generality of the foregoing, the Issuing Lender and each of its
Affiliates (A) may rely on any oral or other communication believed in good faith by the Issuing
Lender or such Affiliate to have been authorized or given by or on behalf of the applicant for a
Letter of Credit, (B) may honor any presentation if the documents presented appear on their face
substantially to comply with the terms and conditions of the relevant Letter of Credit; (C) may
honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was
pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise,
and shall be entitled to reimbursement to the same extent as if such presentation had initially
been honored, together with any interest paid by the Issuing Lender or its Affiliate; (D) may honor
any drawing that is payable upon presentation of a statement advising negotiation or payment, upon
receipt of such statement (even if such statement indicates that a draft or other document is being
delivered separately), and shall not be liable for any failure of any such draft or other document
to arrive, or to conform in any way with the relevant Letter of Credit; (E) may pay any paying or
negotiating bank claiming that it rightfully honored under the laws or practices of the place where
such bank is located; and (F) may settle or adjust any claim or demand made on the Issuing Lender
or its Affiliate in any way related to any order issued at the applicant’s request to an air
carrier, a letter of guarantee or of indemnity issued to a carrier or any similar document (each an
“Order”) and honor any drawing in connection with any Letter of Credit that is the subject
of such Order, notwithstanding that any drafts or other documents presented in connection with such
Letter of Credit fail to conform in any way with such Letter of Credit.



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



(j) Issuing Lender Reporting Requirements.



The Issuing Lender shall, on the first business day of each month, provide to Administrative
Agent and the Borrower a schedule of the Letters of Credit issued by it, in form and substance
satisfactory to Administrative Agent, showing the date of issuance of each Letter of Credit, the
account party, the original face amount (if any), and the expiration date of



 


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any Letter of Credit outstanding at any time during the preceding month, and any other
information relating to such Letter of Credit that the Administrative Agent may request.



2.9 Utilization of Commitments in Optional Currencies.



(a) Periodic Computations of Dollar Equivalent Amounts of Loans and Letters of Credit
Outstanding.



The Administrative Agent will determine the Dollar Equivalent amount of (i) proposed Revolving
Credit Loans or Letters of Credit to be denominated in an Optional Currency as of the requested
Borrowing Date or date of issuance, as the case may be, (ii) Letters of Credit Outstanding
denominated in an Optional Currency as of the last Business Day of each month, and (iii)
outstanding Revolving Credit Loans denominated in an Optional Currency as of the end of each
Interest Period (each such date under clauses (i) through (iii), a “Computation Date”).



(b) Notices From Lenders That Optional Currencies Are Unavailable to Fund New Loans.



The Lenders shall be under no obligation to make the Revolving Credit Loans requested by the
Borrower which are denominated in an Optional Currency if any Lender notifies the Administrative
Agent by 5:00 p.m. (Pittsburgh time) four (4) Business Days prior to the Borrowing Date for such
Revolving Credit Loans that such Lender cannot provide its share of such Revolving Credit Loans in
such Optional Currency because (i) the making, maintenance or funding of such Optional Currency
Loan has been made impracticable or unlawful by compliance by such Lender in good-faith with any
Law or any interpretation or application thereof by any Official Body or with any request or
directive of any such Official Body (whether or not having the force of Law) or (ii) after making
all reasonable efforts, deposits of the relevant amount in the relevant Optional Currency for the
relevant Interest Period are not available to such Lender with respect to such Loan in the London
interbank market. In the event the Administrative Agent receives a timely notice from a Lender
pursuant to the preceding sentence, the Administrative Agent will notify the Borrower no later than
12:00 noon (Pittsburgh time) three (3) Business Days prior to the Borrowing Date for such Revolving
Credit Loans that the Optional Currency is not then available for such Revolving Credit Loans, and
the Administrative Agent shall promptly thereafter notify the Lenders of the same. If the Borrower
receives a notice described in the preceding sentence, the Borrower may, by notice to the
Administrative Agent not later than 5:00 p.m. (Pittsburgh time) three (3) Business Days prior to
the Borrowing Date for such Revolving Credit Loans, either (i) withdraw the Loan Request for such
Revolving Credit Loans, in which event the Administrative Agent will promptly notify each Lender of
the same and the Lenders shall not make such Revolving Credit Loans, or (ii) request that the
Revolving Credit Loans referred to in its Loan Request be made in Dollars or in a different
Optional Currency in an amount equal to the Dollar Equivalent or other Optional Currency Equivalent
Amount of such Revolving Credit Loans and which shall (A) in the case of Revolving Credit Loans
denominated in Dollars, bear interest under the Base Rate Option or the LIBOR Rate Option, as
elected by the Borrower, or (B) in the case of Revolving Credit Loans denominated in an Optional
Currency, bear interest under the LIBOR Rate Option, in which event the Administrative Agent shall
promptly deliver a notice to each Lender stating: (1) that such



 


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Revolving Credit Loans shall be made in the applicable currency and shall bear interest under
the Base Rate Option or the LIBOR Rate Option, as applicable, (2) the aggregate amount of such
Revolving Credit Loans, and (3) such Lender’s Ratable Share of such Revolving Credit Loans. If the
Borrower does not withdraw such Loan Request before such time as provided in clause (i) or request
before such time that the requested Revolving Credit Loans referred to in its Loan Request be made
in Dollars or a different Optional Currency as provided in clause (ii), then (a) the Borrower shall
be deemed to have withdrawn such Loan Request and (b) the Administrative Agent shall promptly
deliver a notice to each Lender thereof and the Lenders shall not make such Revolving Credit Loans.



(c) Notices From Lenders That Optional Currencies Are Unavailable to Fund Renewals of the
LIBOR Rate Option.



If the Borrower delivers a Loan Request requesting that the Lenders renew the LIBOR Rate
Option with respect to an outstanding Borrowing Tranche of Revolving Credit Loans denominated in an
Optional Currency, the Lenders shall be under no obligation to renew such LIBOR Rate Option if any
Lender delivers to the Administrative Agent a notice by 5:00 p.m. (Pittsburgh time) four (4)
Business Days prior to effective date of such renewal that such Lender cannot continue to provide
Revolving Credit Loans in such Optional Currency because (i) the making, maintenance or funding of
such Optional Currency Loan has been made impracticable or unlawful by compliance by such Lender in
good-faith with any Law or any interpretation or application thereof by any Official Body or with
any request or directive of any such Official Body (whether or not having the force of Law) or (ii)
after making all reasonable efforts, deposits of the relevant amount in the relevant Optional
Currency for the relevant Interest Period are not available to such Lender with respect to such
Loan in the London interbank market. In the event the Administrative Agent receives a timely
notice from a Lender pursuant to the preceding sentence, the Administrative Agent will notify the
Borrower no later than 12:00 noon (Pittsburgh time) three (3) Business Days prior to the renewal
date that the renewal of such Revolving Credit Loans in such Optional Currency is not then
available, and the Administrative Agent shall promptly thereafter notify the Lenders of the same.
If the Administrative Agent shall have so notified the Borrower that any such renewal of Optional
Currency Loans is not then available, any notice of renewal with respect thereto shall be deemed
withdrawn, and such Optional Currency Loans shall be redenominated into Base Rate Loans in Dollars
with effect from the last day of the Interest Period with respect to any such Optional Currency
Loans. The Administrative Agent will promptly notify the Borrower and the Lenders of any such
redenomination, and in such notice, the Administrative Agent will state the aggregate Dollar
Equivalent amount of the redenominated Optional Currency Loans as of the Computation Date with
respect thereto and such Lender’s Ratable Share thereof.



(d) Requests for Additional Optional Currencies.



The Borrower may deliver to the Administrative Agent a written request that Revolving Credit
Loans hereunder also be permitted to be made in any other lawful currency (other than Dollars), in
addition to the currencies specified in the definition of “Optional Currency” herein provided that
such currency must be freely traded in the offshore interbank foreign exchange markets, freely
transferable, freely convertible into Dollars and available to the Lenders in the applicable
interbank market. The Administrative Agent will promptly notify the



 


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Lenders of any such request promptly after the Administrative Agent receives such request.
The Administrative Agent and each Lender may grant or accept such request in their sole discretion.
The Administrative Agent will promptly notify the Borrower of the acceptance or rejection by the
Administrative Agent and each of the Lenders of the Borrower’s request. The requested currency
shall be approved as an Optional Currency hereunder only if the Administrative Agent and all of the
Lenders approve of the Borrower’s request.



2.10 Currency Repayments. Notwithstanding anything contained herein to the contrary, the
entire amount of principal of and interest on any Loan made in an Optional Currency shall be repaid
in the same Optional Currency in which such Loan was made, provided, however, that
if it is impossible or illegal for the Borrower to effect payment of a Loan in the Optional
Currency in which such Loan was made, or if the Borrower defaults in its obligations to do so, the
Required Lenders may at their option permit such payment to be made (a) at and to a different
location, subsidiary, affiliate or correspondent of the Administrative Agent, or (b) in the
Equivalent Amount of Dollars or (c) in an Equivalent Amount of such other currency (freely
convertible into Dollars) as the Required Lenders may solely at their option designate. Upon any
events described in (a) through (c) of the preceding sentence, the Borrower shall make such
payment, and the Borrower agrees to hold each Lender harmless from and against any loss incurred by
any Lender arising from the cost to such Lender of any premium, any costs of exchange, the cost of
hedging and covering the Optional Currency in which such Loan was originally made, and from any
change in the value of Dollars, or such other currency, in relation to the Optional Currency that
was due and owing. Such loss shall be calculated for the period commencing with the first day of
the Interest Period for such Loan and continuing through the date of payment thereof. Without
prejudice to the survival of any other agreement of the Borrower hereunder, the Borrower’s
obligations under this Section 2.10 shall survive termination of this Agreement.



2.11 Optional Currency Amounts. Notwithstanding anything contained herein to the contrary,
the Administrative Agent may, with respect to notices by the Borrower for Loans in an Optional
Currency or voluntary prepayments of less than the full amount of an Optional Currency Borrowing
Tranche, engage in reasonable rounding of the Optional Currency amounts requested to be loaned or
repaid; and, in such event, the Administrative Agent shall promptly notify the Borrower and the
Lenders of such rounded amounts and the Borrower’s request or notice shall thereby be deemed to
reflect such rounded amounts.



3. INTEREST RATES.




3.1 Interest Rate Options. The Borrower shall pay interest in respect of the outstanding
unpaid principal amount of the Loans as selected by it from the Base Rate Option or LIBOR Rate
Option set forth below applicable to the Loans, it being understood that, subject to the provisions
of this Agreement, the Borrower may select different Interest Rate Options and different Interest
Periods to apply simultaneously to the Loans comprising different Borrowing Tranches and may
convert to or renew one or more Interest Rate Options with respect to all or any portion of the
Loans comprising any Borrowing Tranche; provided that there shall not be at any one time
outstanding more than six (6) Borrowing Tranches in the aggregate among all of the Loans and
provided further that if an Event of Default or Potential Default exists and is
continuing, the Borrower may not request, convert to, or renew the LIBOR Rate Option for any



 


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Loans and the Required Lenders may demand that all existing Borrowing Tranches bearing interest
under the LIBOR Rate Option shall be converted immediately to the Base Rate Option, subject to the
obligation of the Borrower to pay any indemnity under Section 4.10 [Indemnity] in
connection with such conversion. If at any time the designated rate applicable to any Loan made by
any Lender exceeds such Lender’s highest lawful rate, the rate of interest on such Lender’s Loan
shall be limited to such Lender’s highest lawful rate. Interest on the principal amount of each
Loan made in an Optional Currency shall be paid by the Borrower in such Optional Currency.



(a) Revolving Credit Interest Rate Options.



The Borrower shall have the right to select from the following Interest Rate Options
applicable to the Revolving Credit Loans, except that no Loan to which the Base Rate Option shall
apply may be made in an Optional Currency:



(i) Revolving Credit Base Rate Option. A fluctuating rate per annum (computed on the basis of
a year of 365 or 366 days, as the case may be, and actual days elapsed) equal to the Base Rate plus
the Applicable Margin, such interest rate to change automatically from time to time effective as of
the effective date of each change in the Base Rate; or



(ii) Revolving Credit LIBOR Rate Option. A rate per annum (computed on the basis of a year of
360 days and actual days elapsed, provided that, for Loans made in Optional
Currencies for which a 365-day basis is the only market practice available to the Administrative
Agent, such rate shall be calculated on the basis of a year of 365 days for the actual days
elapsed) equal to the LIBOR Rate plus the Applicable Margin.



(b) Swing Line Interest Rate.



Only the Base Rate Option shall apply to the Swing Loans.



(c) Rate Quotations.



The Borrower may call the Administrative Agent on or before the date on which a Loan Request
is to be delivered to receive an indication of the rates and the applicable currency exchange rates
then in effect, but it is acknowledged that such projection shall not be binding on the
Administrative Agent or the Lenders nor affect the rate of interest or the calculation of
Equivalent Amounts which thereafter is actually in effect when the election is made.



3.2 Interest Periods. At any time when the Borrower shall select, convert to or renew a
LIBOR Rate Option, the Borrower shall notify the Administrative Agent thereof at least four (4)
Business Days prior to the effective date of such Interest Rate Option, with respect to an Optional
Currency Loan, and three (3) Business Days prior to the effective date of such LIBOR Rate Option by
delivering a Loan Request. The notice shall specify an Interest Period during which such Interest
Rate Option shall apply. Notwithstanding the preceding sentence, the following provisions shall
apply to any selection of, renewal of, or conversion to a LIBOR Rate Option:


 


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(a) Amount of Borrowing Tranche.



The Dollar Equivalent amount of each Borrowing Tranche of Loans under the LIBOR Rate Option
shall be in integral multiples of $100,000.00 and not less than $1,000,000.00; and



(b) Renewals.



In the case of the renewal of a LIBOR Rate Option at the end of an Interest Period, the first
day of the new Interest Period shall be the last day of the preceding Interest Period, without
duplication in payment of interest for such day.



3.3 Interest After Default. To the extent permitted by Law, upon the occurrence of an
Event of Default and until such time such Event of Default shall have been cured or waived:



(a) Letter of Credit Fees, Interest Rate.The Letter of Credit Fees and the rate of
interest for each Loan otherwise applicable pursuant to Section 2.8(b) [Letter of Credit
Fees] or Section 3.1 [Interest Rate Options], respectively, shall be increased by 2.0% per
annum at the direction of Required Lenders;



(b) Other Obligations.At the direction of Required Lenders each other Obligation
hereunder if not paid when due shall bear interest at a rate per annum equal to the sum of the rate
of interest applicable under the Base Rate Option plus an additional 2% per annum from the time
such Obligation becomes due and payable and until it is paid in full; and



(c) Acknowledgment.



The Borrower acknowledges that the increase in rates referred to in this Section 3.3
reflects, among other things, the fact that such Loans or other amounts have become a substantially
greater risk given their default status and that the Lenders are entitled to additional
compensation for such risk; and all such interest shall be payable by Borrower upon demand by
Administrative Agent.



3.4 LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available.



(a) Unascertainable.



If on any date on which a LIBOR Rate would otherwise be determined, the Administrative Agent
shall have determined that:



(i) adequate and reasonable means do not exist for ascertaining such LIBOR Rate, or



(ii) a contingency has occurred which materially and adversely affects the London interbank
eurodollar market relating to the LIBOR Rate, the Administrative Agent shall have the rights
specified in Section 3.4(c) [Administrative Agent’s and Lender’s Rights].


 


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(b) Illegality; Increased Costs; Deposits Not Available.



If at any time any Lender shall have determined that:



(i) the making, maintenance or funding of any Loan to which a LIBOR Rate Option applies has
been made impracticable or unlawful by compliance by such Lender in good faith with any Law or any
interpretation or application thereof by any Official Body or with any request or directive of any
such Official Body (whether or not having the force of Law), or



(ii) such LIBOR Rate Option will not adequately and fairly reflect the cost to such Lender of
the establishment or maintenance of any such Loan, or



(iii) after making all reasonable efforts, deposits of the relevant amount in Dollars or the
Optional Currency (as applicable) for the relevant Interest Period for a Loan, or to banks
generally, to which a LIBOR Rate Option applies, respectively, are not available to such Lender
with respect to such Loan, or to banks generally, in the interbank eurodollar market,



(iv) then the Administrative Agent shall have the rights specified in Section 3.4(c)
[Administrative Agent’s and Lender’s Rights].



(c) Administrative Agent’s and Lender’s Rights.



In the case of any event specified in Section 3.4(a) [Unascertainable] above, the
Administrative Agent shall promptly so notify the Lenders and the Borrower thereof, and in the case
of an event specified in Section 3.4(b) [Illegality; Increased Costs; Deposits Not
Available] above, such Lender shall promptly so notify the Administrative Agent and endorse a
certificate to such notice as to the specific circumstances of such notice, and the Administrative
Agent shall promptly send copies of such notice and certificate to the other Lenders and the
Borrower. Upon such date as shall be specified in such notice (which shall not be earlier than the
date such notice is given), the obligation of (i) the Lenders, in the case of such notice given by
the Administrative Agent, or (ii) such Lender, in the case of such notice given by such Lender, to
allow the Borrower to select, convert to or renew a LIBOR Rate Option or select an Optional
Currency (as applicable) shall be suspended until the Administrative Agent shall have later
notified the Borrower, or such Lender shall have later notified the Administrative Agent, of the
Administrative Agent’s or such Lender’s, as the case may be, determination that the circumstances
giving rise to such previous determination no longer exist. If at any time the Administrative
Agent makes a determination under Section 3.4(a) [Unascertainable] and the Borrower has
previously notified the Administrative Agent of its selection of, conversion to or renewal of a
LIBOR Rate Option and such Interest Rate Option has not yet gone into effect, such notification
shall be deemed to provide for selection of, conversion to or renewal of the Base Rate Option
otherwise available with respect to such Loans. If any Lender notifies the Administrative Agent of
a determination under Section 3.4(b) [Illegality; Increased Costs; Deposits Not Available],
the Borrower shall, subject to the Borrower’s indemnification Obligations under Section 4.10 [Indemnity], as to any Loan of the Lender to which a
LIBOR Rate Option applies, on the date specified in such notice either (A) as applicable convert
such Loan to the Base Rate Option otherwise available with respect to such Loan or select a
different Optional Currency or Dollars or (B) prepay such Loan in accordance with Section
4.6



 


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[Voluntary Prepayments]. Absent due notice from the Borrower of conversion or prepayment,
such Loan shall automatically be converted to the Base Rate Option otherwise available with respect
to such Loan upon such specified date.



3.5 Selection of Interest Rate Options. If the Borrower fails to select a new
Interest Period or Optional Currency to apply to any Borrowing Tranche of Loans under the LIBOR
Rate Option at the expiration of an existing Interest Period applicable to such Borrowing Tranche
in accordance with the provisions of Section 3.2 [Interest Periods], the Borrower shall be
deemed to have (a) with respect to Dollar Loans, converted such Borrowing Tranche to the Base Rate
Option commencing upon the last day of the existing Interest Period, and (b) with respect to any
such Optional Currency Borrowing Tranche, continue the same Optional Currency therefor, but select
a one Month Interest Period, commencing upon the last day of the existing Interest Period.



4. PAYMENTS.




4.1 Payments. All payments and prepayments to be made in respect of principal, interest,
Commitment Fees, Letter of Credit Fees, Administrative Agent’s Fee or other fees or amounts due
from the Borrower hereunder shall be payable prior to 11:00 a.m. on the date when due without
presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the
Borrower, and without set-off, counterclaim or other deduction of any nature, and an action
therefor shall immediately accrue. Such payments shall be made to the Administrative Agent at the
Principal Office for the account of PNC Bank with respect to the Swing Loans, for the accounts of
the Issuing Bank and/or the ratable accounts of the Lenders (as provided in Section 2.8
[Letter of Credit Subfacility] with respect to payments respecting Letter of Credit Obligations and
fees payable under such Section, for the ratable accounts of the Lenders with respect to the
Revolving Credit Loans and for the account of the Administrative Agent with respect to the
Administrative Agent’s Fee in U.S. Dollars, except that payments of principal or interest shall be
made in the currency in which such Loan was made, and in immediately available funds, and the
Administrative Agent shall promptly distribute any such amounts payable to the Lenders in
immediately available funds; provided that in the event payments are received by 11:00 a.m.
by the Administrative Agent with respect to the Loans and such payments are not distributed to the
Lenders on the same day received by the Administrative Agent, the Administrative Agent shall pay
the Lenders the Federal Funds Effective Rate in the case of Loans or other amounts due in Dollars,
or the Overnight Rate in the case of Loans or other amounts due in an Optional Currency with
respect to the amount of such payments for each day held by the Administrative Agent and not
distributed to the Lenders. The Administrative Agent’s and each Lender’s statement of account,
ledger or other relevant record shall, in the absence of manifest error, be conclusive as the
statement of the amount of principal of and interest on the Loans and other amounts owing under
this Agreement (including the Equivalent Amounts of the applicable currencies where such
computations are required) and shall be deemed an “account stated.”



4.2 Pro Rata Treatment of Lenders. Each borrowing shall be allocated to each Lender
according to its Ratable Share, and each selection of, conversion to or renewal of any Interest
Rate Option and each payment or prepayment by the Borrower with respect to principal, interest,
Commitment Fees, Letter of Credit Fees, or other fees (except for the Administrative Agent’s Fee
and fronting or administrative fees charged by the Issuing Lender) or amounts due



 


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from the Borrower hereunder to the Lenders with respect to the Loans, shall (except as provided with respect to a
Non-Complying Lender or a Delinquent Lender and except as provided in Section 3.4(c)
[Administrative Agent’s and Lender’s Rights], Section 4.6(b) [Replacement of a Lender] or
Section 4.8 [Increased Costs]) be made in proportion to the applicable Loans outstanding
from each Lender and, if no such Loans are then outstanding, in proportion to the Ratable Share of
each Lender. Notwithstanding any of the foregoing, each borrowing or payment or prepayment by the
Borrower of principal, interest, fees or other amounts from the Borrower with respect to Swing
Loans shall be made by or to PNC Bank according to Section 2.5 [Making Revolving Credit
Loans and Swing Loans; Presumption by the Administrative Agent; Repayment of Revolving Credit
Loans; Borrowing to Repay Swing Loans].



4.3 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of
setoff, counterclaim or banker’s lien, by receipt of voluntary payment, by realization upon
security, or by any other non-pro rata source, obtain payment in respect of any principal of or
interest on any of its Loans or other obligations hereunder resulting in such Lender’s receiving
payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other
such obligations greater than its Ratable Share thereof as provided herein, then the Lender
receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b)
purchase (for cash at face value) participations in the Loans and such other obligations of the
other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all
such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective Loans and other amounts owing them,
provided that:



(i) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the
extent of such recovery, together with interest or other amounts, if any, required by Law
(including court order) to be paid by the Lender or the holder making such purchase; and



(ii) the provisions of this Section 4.3 shall not be construed to apply to (A) any
payment made by the Loan Parties pursuant to and in accordance with the express terms of the Loan
Documents or (B) any payment obtained by a Lender as consideration for the assignment of or sale of
a participation in any of its Loans or Participation Advances to any assignee or participant, other
than to the Borrower or any Subsidiary thereof (as to which the provisions of this Section
4.3 shall apply).



Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under
applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements
may exercise against each Loan Party rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of each Loan Party in the amount of
such participation. Notwithstanding anything to the contrary contained in this
Agreement or any of the other Loan Documents, any Lender that fails at any time to comply with the
provisions of this Section 4.3 with respect to purchasing participations from the other
Lenders whereby such Lender’s share of any payment received, whether by setoff or otherwise, is in
excess of its Ratable Share of such payments due and payable to all of the Lenders, when and



 


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to the full extent required by the provisions of this Agreement, shall be deemed delinquent (a
“Delinquent Lender”) and shall be deemed a Delinquent Lender until such time as each such
delinquency and all of its obligations hereunder are satisfied. A Delinquent Lender shall be
deemed to have assigned any and all payments due to it from the Borrower, whether on account of or
relating to outstanding Loans, Letters of Credit, interest, fees or otherwise, to the remaining
nondelinquent Lenders for application to, and reduction of, their respective Ratable Share of all
outstanding Loans and other unpaid Obligations of any of the Loan Parties. The Delinquent Lender
hereby authorizes the Administrative Agent to distribute such payments to the nondelinquent Lenders
in proportion to their respective Ratable Share of all outstanding Loans and other unpaid
Obligations of any of the Loan Parties. A Delinquent Lender shall be deemed to have satisfied in
full a delinquency when and if, as a result of application of the assigned payments to all
outstanding Loans and other unpaid Obligations of any of the Loan Parties to the nondelinquent
Lenders, the Lenders’ respective Ratable Share of all outstanding Loans and unpaid Obligations have
returned to those in effect immediately prior to such delinquency and without giving effect to the
nonpayment causing such delinquency.



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



4.5 Interest Payment Dates. Interest on Loans to which the Base Rate Option applies shall
be due and payable in arrears on each Payment Date. Interest on Loans to which the LIBOR Rate
Option applies shall be due and payable in the currency in which such Loan was made on the last day
of each Interest Period for those Loans and, if such Interest Period is longer than three (3)
Months, also on the 90th day of such Interest Period. Interest on mandatory prepayments of
principal under Section 4.7 [Mandatory Prepayments] shall be made in the currency in which
such Loan was made and shall be due on the date such mandatory prepayment is due. Interest on the
principal amount of each Loan or other monetary Obligation shall be due and payable on demand after
such principal amount or other monetary Obligation becomes due and payable (whether on the stated
Expiration Date, upon acceleration or otherwise).



4.6 Voluntary Prepayments; Reduction of Revolving Credit Commitments.



(a) Right to Prepay.



The Borrower shall have the right at its option from time to time to prepay the Loans in whole
or part without premium or penalty (except as provided in Section 4.6(b)



 


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[Replacement of a
Lender] below, in Section 4.8 [Increased Costs] and Section 4.10 [Indemnity]) in
the currency in which such Loan was made. Whenever the Borrower desires to prepay any part of the
Loans, it shall provide a prepayment notice to the Administrative Agent by 1:00 p.m. at least one
(1) Business Day prior to the date of prepayment of the Revolving Credit Loans or no later than
12:00 p.m., Philadelphia time, on the date of prepayment of Swing Loans, setting forth the
following information:



(i) the date, which shall be a Business Day, on which the proposed prepayment is to be made;



(ii) a statement indicating the application of the prepayment between the Revolving Credit
Loans and Swing Loans; and



(iii) the total principal amount and currency of such prepayment, the Dollar Equivalent of
which shall not be less than the lesser of the then outstanding amount or $100,000.00 for any Swing
Loan or $250,000.00 for any Revolving Credit Loan.



All prepayment notices shall be irrevocable. The principal amount of the Loans for which a
prepayment notice is given, together with interest on such principal amount except with respect to
Loans to which the Base Rate Option applies, shall be due and payable on the date specified in such
prepayment notice as the date on which the proposed prepayment is to be made in the currency in
which such Loan was made. Except as provided in Section 3.4(c) [Administrative Agent’s and
Lender’s Rights], if the Borrower prepays a Loan but fails to specify the applicable Borrowing
Tranche which the Borrower is prepaying, the prepayment shall be applied first to Loans to which
the Base Rate Option applies, then to Dollar Loans to which the LIBOR Rate Option applies and then
to Optional Currency Loans. Any prepayment hereunder shall be subject to the Borrower’s Obligation
to indemnify the Lenders under Section 4.10 [Indemnity].



(b) Replacement of a Lender.



In the event any Lender (i) gives notice under Section 3.4 [LIBOR Rate
Unascertainable, Etc.], (ii) requests compensation under Section 4.8 [Increased Costs], or
requires the Borrower to pay any additional amount to any Lender or any Official Body for the
account of any Lender pursuant to Section 4.9 [Taxes], (iii) is a Non-Complying Lender,
(iv) becomes subject to the control of an Official Body (other than normal and customary
supervision), or (v) is a Non-Consenting Lender referred to in Section 10.1 [Modifications,
Amendments or Waivers] then in any such event the Borrower may, at its sole expense, upon notice to
such Lender and the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and consents required
by, Section 10.8 [Successors and Assigns]), all of its interests, rights and obligations
under this Agreement and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such assignment),
provided that:



(A) the Borrower shall have paid to the Administrative Agent the assignment fee specified in
Section 10.8 [Successors and Assigns];


 


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



(C) in the case of any such assignment resulting from a claim for compensation under
Section 4.8(a) [Increased Costs Generally] or payments required to be made pursuant to
Section 4.9 [Taxes], such assignment will result in a reduction in such compensation or
payments thereafter; and



(D) such assignment does not conflict with applicable Law.



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



(c) Termination or Reduction of Revolving Credit Commitments.



The Borrower may, upon notice to the Administrative Agent, terminate the Revolving Credit
Commitments, or from time to time permanently reduce the Revolving Credit Commitments;
provided that (i) any such notice shall be received by the Administrative Agent not
later than 11:00 a.m. five (5) Business Days prior to the date of termination or reduction, (ii)
any such partial reduction shall be in an aggregate amount of $10,000,000.00 or a whole multiple of
$1,000,000.00 in excess thereof , (iii) the Borrower shall not terminate or reduce the Revolving
Credit Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the
Revolving Facility Usage would exceed the Revolving Credit Commitments, and (iv) if, after giving
effect to any reduction of the Revolving Credit Commitments, the Letter of Credit Sublimit or the
Swing Line Commitment exceeds the amount of the Revolving Credit Commitments, each shall be
automatically reduced by the amount of such excess. The Administrative Agent will promptly notify
the Lenders of any such notice of termination or reduction of the Revolving Credit Commitments.
The amount of any such Revolving Credit Commitment reduction shall not be applied to the Swing Line
pro rata or the Letter of Credit Sublimit unless otherwise specified by the Borrower or required by
clause (iv). Any reduction of the Revolving Credit Commitments shall be applied to the Revolving
Credit Commitment of each Lender pro rata. All fees accrued until the effective date of any
termination of the Revolving Credit Commitments shall be paid on the effective date of such
termination.



4.7 Mandatory Prepayments.



(a) Sale of Assets.



Within five (5) Business Days of any sale of assets authorized by Section 7.2(g)
[Disposition of Assets or Subsidiaries] for a purchase price (when added to the purchase price of
other assets sold during the same fiscal year) equal to or in excess of Five Million Dollars
($5,000,000.00), the Borrower shall make a mandatory prepayment of principal (and simultaneous
reduction of Revolving Credit Commitments) equal to after-tax proceeds of



 


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such sale (as estimated
in good faith by the Borrower) net of any such proceeds used within 365 days of such sale for the
purchase of property of a kind and use similar to the property sold. The Borrower shall also pay
simultaneously with such prepayment accrued interest on any principal amount of the Loans prepaid
under this clause (a).



(b) Material Recovery Event.



Within five (5) Business Days following any receipt by a Loan Party of property or casualty
insurance proceeds or condemnation award proceeds, (when added to other such proceeds received
during the same fiscal year), equal or exceed Five Million Dollars ($5,000,000.00), if the
recovered proceeds are not intended by such Loan Party to be used within 365 days for the repair,
replacement or restoration of damaged property (or on such 365th day if the Borrower intended to
use such proceeds for such repair, replacement or restoration but fails to do so within such
365-day period), the Borrower shall make a mandatory prepayment of principal (and simultaneous
reduction of Revolving Credit Commitments) equal to such proceeds not intended to be so used, or
not so used (as the case may be), together with accrued interest on such principal amount.



(c) Currency Fluctuations.



If on any Computation Date (i) the Dollar Equivalent Revolving Facility Usage is greater than
the Revolving Credit Commitments, (ii) the Dollar Equivalent of Loans in Optional Currencies shall
exceed $50,000,000.00, in the aggregate, or (iii) the Dollar Equivalent of Letters of Credit
Outstanding shall exceed $30,000,000.00, in each case as a result of a change in exchange rates
between one (1) or more Optional Currencies and Dollars, then the Administrative Agent shall notify
the Borrower of the same. The Borrower shall pay or prepay Loans (subject to Borrower’s indemnity
obligations under Section 4.8 [Increase Costs] and Section 4.10 [Indemnity]) within
one (1) Business Day after receiving such notice such that after giving effect to such payments or
prepayments, (A) the Dollar Equivalent Revolving Facility Usage shall not exceed the Revolving
Credit Commitments, and (B) the Dollar Equivalent of Loans in Optional Currencies shall not exceed
$50,000,000.00. With respect to the circumstance identified in clause (iii) of the first sentence
of this paragraph, the Borrower shall Cash Collateralize the Letters of Credit Outstanding to the
extent of the amount by which the Dollar Equivalent of Letters of Credit Outstanding exceeds
$30,000,000.00.



(d) Application Among Interest Rate Options.



All prepayments required pursuant to this Section 4.7 shall first be applied among the
Interest Rate Options to the principal amount of the Loans subject to the Base Rate
Option, then to Loans subject to a LIBOR Rate Option. In accordance with Section 4.10
[Indemnity], the Borrower shall indemnify the Lenders for any loss or expense, including loss of
margin, incurred with respect to any such prepayments applied against Loans subject to a LIBOR Rate
Option on any day other than the last day of the applicable Interest Period.


 


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4.8 Increased Costs.



(a) Increased Costs Generally.



If any Change in Law shall:



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



(ii) subject any Lender or the Issuing Lender to any tax of any kind whatsoever with respect
to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any Loan under
the LIBOR Rate Option made by it, or change the basis of taxation of payments to such Lender or the
Issuing Lender in respect thereof (except for Indemnified Taxes or Other Taxes covered by
Section 4.9 [Taxes] and the imposition of, or any change in the rate of, any Excluded Tax
payable by such Lender or the Issuing Lender); or



(iii) impose on any Lender, the Issuing Lender or the London interbank market any other
condition, cost or expense affecting this Agreement or Loan under the LIBOR Rate Option made by
such Lender or any Letter of Credit or participation therein;



and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Loan under the LIBOR Rate Option (or of maintaining its obligation to make any such
Loan), or to increase the cost to such Lender or the Issuing Lender of participating in, issuing or
maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue
any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or
the Issuing Lender hereunder (whether of principal, interest or any other amount) then, upon
request of such Lender or the Issuing Lender, the Borrower will pay to such Lender or the Issuing
Lender, as the case may be, such additional amount or amounts as will compensate such Lender or the
Issuing Lender, as the case may be, for such additional costs incurred or reduction suffered.



(b) Capital Requirements.



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



 


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such additional
amount or amounts as will compensate such Lender or the Issuing Lender or such Lender’s or the
Issuing Lender’s holding company for any such reduction suffered.



(c) Certificates for Reimbursement; Repayment of Outstanding Loans; Borrowing of New
Loans.



A certificate of a Lender or the Issuing Lender setting forth the amount or amounts necessary
to compensate such Lender or the Issuing Lender or its holding company, as the case may be, as
specified in Section 4.8(a) [Increased Costs Generally] or Section 4.8(b) [Capital
Requirements] and delivered to the Borrower shall be conclusive absent manifest error. The
Borrower shall pay such Lender or the Issuing Lender, as the case may be, the amount shown as due
on any such certificate within ten (10) days after receipt thereof.



(d) Delay in Requests.



Failure or delay on the part of any Lender or the Issuing Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Lender’s
right to demand such compensation, provided that the Borrower shall not be required
to compensate a Lender or the Issuing Lender pursuant to this Section for any increased costs
incurred or reductions suffered more than nine months prior to the date that such Lender or the
Issuing Lender, as the case may be, notifies the Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or the Issuing Lender’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the nine (9) month period referred to above shall be extended to
include the period of retroactive effect thereof).



4.9 Taxes.



(a) Payments Free of Taxes.



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



(b) Payment of Other Taxes by the Borrower.



Without limiting the provisions of Section 4.9(a) [Payments Free of Taxes] above, the
Borrower shall timely pay any Other Taxes to the relevant Official Body in accordance with
applicable Law.


 


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(c) Indemnification by the Borrower.



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



(d) Evidence of Payments.



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



(e) Status of Lenders.



Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under
the Law of the jurisdiction in which the Borrower is resident for tax purposes, or any treaty to
which such jurisdiction is a party, with respect to payments hereunder or under any other Loan
Document shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or
times prescribed by applicable Law or reasonably requested by the Borrower or the Administrative
Agent, such properly completed and executed documentation prescribed by applicable Law as will
permit such payments to be made without withholding or at a reduced rate of withholding.
Notwithstanding the submission of any such documentation claiming a reduced rate of or exemption
from U.S. withholding tax, the Administrative Agent shall be entitled to withhold United States
federal income taxes at the full 30% withholding rate if in its reasonable judgment it is required
to do so under the due diligence requirements imposed upon a withholding agent under §1.1441-7(b)
of the United States Income Tax Regulations. Further, the Administrative Agent is indemnified
under §1.1461-1(e) of the United States Income Tax Regulations against any claims and demands of
any Lender or assignee or participant of a Lender for the amount of any tax it deducts and
withholds in accordance with regulations under §1441 of the Code. In addition, any Lender, if
requested by the Borrower or the Administrative Agent, shall deliver such other documentation
prescribed by applicable Law or reasonably requested by the Borrower or the Administrative Agent as will
enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject
to backup withholding or information reporting requirements.



Without limiting the generality of the foregoing, in the event that the Borrower is resident
for tax purposes in the United States of America, any Foreign Lender shall



 


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deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on
or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from
time to time thereafter upon the request of the Borrower or the Administrative Agent, but only if
such Foreign Lender is legally entitled to do so), whichever of the following is applicable:



(i) duly completed copies of IRS Form W-8BEN claiming eligibility for benefits of an income
tax treaty to which the United States of America is a party,



(ii) duly completed copies of IRS Form W-8ECI,



(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio
interest under section 881(c) of the Code, (A) a certificate to the effect that such Foreign Lender
is not (1) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (2) a “10 percent
shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of the Code, or (3) a
“controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (B) duly
completed copies of IRS Form W-8BEN, or



(iv) any other form prescribed by applicable Law as a basis for claiming exemption from or a
reduction in United States Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable Law to permit the Borrower to determine the
withholding or deduction required to be made.



4.10 Indemnity. In addition to the compensation or payments required by Section
4.8 [Increased Costs] or Section 4.9 [Taxes], the Borrower shall indemnify each Lender
against all liabilities, losses or expenses (including loss of margin, any loss or expense incurred
in liquidating or employing deposits from third parties and any loss or expense incurred in
connection with funds acquired by a Lender to fund or maintain Loans subject to a LIBOR Rate
Option) which such Lender sustains or incurs as a consequence of any



(a) payment, prepayment, conversion or renewal of any Loan to which a LIBOR Rate Option
applies on a day other than the last day of the corresponding Interest Period (whether or not such
payment or prepayment is mandatory, voluntary or automatic and whether or not such payment or
prepayment is then due),



(b) attempt by the Borrower to revoke (expressly, by later inconsistent notices or otherwise)
in whole or part any Loan Requests under Section 2.4 [Revolving Credit Loan Requests] or
Section 3.2 [Interest Periods] or notice relating to prepayments under Section 4.6
[Voluntary Prepayments], or



(c) default by the Borrower in the performance or observance of any covenant or condition
contained in this Agreement or any other Loan Document, including any failure of
the Borrower to pay when due (by acceleration or otherwise) any principal, interest,
Commitment Fee or any other amount due hereunder.



If any Lender sustains or incurs any such loss or expense, it shall from time to time notify
the Borrower in writing of the amount determined in good faith by such Lender (which determination
may include such assumptions, allocations of costs and expenses and




 


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averaging or attribution methods as such Lender shall deem reasonable) to be necessary to
indemnify such Lender for such loss or expense. Such notice shall set forth in reasonable detail
the basis for such determination. Such amount shall be due and payable by the Borrower to such
Lender ten (10) Business Days after such notice is given.



4.11 Settlement Date Procedures. In order to minimize the transfer of funds between
the Lenders and the Agent, the Borrower may borrow, repay and reborrow Swing Loans and PNC Bank may
make Swing Loans as provided in Section 2.1(c) [Swing Loan Commitment] hereof during the
period between Settlement Dates. Not later than 11:00 a.m. on each Settlement Date, the
Administrative Agent shall notify each Lender of its Ratable Share of the total of the Revolving
Credit Loans and the Swing Loans (each a “Required Share”). Prior to 2:00 p.m.,
Philadelphia time, on such Settlement Date, each Lender shall pay to the Administrative Agent the
amount equal to the difference between its Required Share and its Revolving Credit Loans, and the
Administrative Agent shall pay to each Lender its Ratable Share of all payments made by the
Borrower to the Administrative Agent with respect to the Revolving Credit Loans. The
Administrative Agent shall also effect settlement in accordance with the foregoing sentence on the
proposed Borrowing Dates for Revolving Credit Loans and may at its option effect settlement on any
other Business Day. These settlement procedures are established solely as a matter of
administrative convenience, and nothing contained in this Section 4.11 shall relieve the
Lenders of their obligations to fund Revolving Credit Loans on dates other than a Settlement Date
pursuant to Section 2.5 [Making Revolving Credit Loans and Swing Loans; Presumptions by the
Administrative Agent; Repayment of Revolving Credit Loans; Borrowing to Repay Swing Loans]. The
Administrative Agent may at any time at its option for any reason whatsoever require each Lender to
pay immediately to the Administrative Agent such Lender’s Ratable Share of the outstanding
Revolving Credit Loans and each Lender may at any time require the Administrative Agent to pay
immediately to such Lender its Ratable Share of all payments made by the borrower to the
Administrative Agent with respect to the Revolving Credit Loans.



4.12 Interbank Market Presumption. For all purposes of this Agreement and each Note
with respect to any aspects of the LIBOR Rate, or any Loan under the LIBOR Rate Option, or any
Optional Currency, each Lender and the Administrative Agent shall be presumed to have obtained
rates, funding, currencies, deposits, and the like in the London interbank market regardless
whether it did so or not; and, each Lender’s and the Administrative Agent’s determination of
amounts payable under, and actions required or authorized by, Section 4.10 [Indemnity]
shall be calculated, at each Lender’s and the Administrative Agent’s option, as though each Lender
and the Administrative Agent funded each Borrowing Tranche of Loans under the LIBOR Rate Option
through the purchase of deposits of the types and maturities corresponding to the deposits used as
a reference in accordance with the terms hereof in determining the LIBOR Rate applicable to such
Loans, whether in fact that is the case.




4.13 Judgment Currency.




(a) Currency Conversion Procedures for Judgments.



If for the purposes of obtaining judgment in any court it is necessary to convert a sum due
hereunder or under a Note in any currency (the “Original Currency”) into another currency
(the “Other Currency”), the parties hereby agree, to the fullest extent



 


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permitted by Law, that the rate of exchange used shall be that at which in accordance with
normal banking procedures the Administrative Agent could purchase the Original Currency with the
Other Currency after any premium and costs of exchange on the Business Day preceding that on which
final judgment is given.




(b) Indemnity in Certain Events.



The obligation of the Borrower in respect of any sum due from the Borrower to any Lender
hereunder shall, notwithstanding any judgment in an Other Currency, whether pursuant to a judgment
or otherwise, be discharged only to the extent that, on the Business Day following receipt by any
Lender of any sum adjudged to be so due in such Other Currency, such Lender may in accordance with
normal banking procedures purchase the Original Currency with such Other Currency. If the amount
of the Original Currency so purchased is less than the sum originally due to such Lender in the
Original Currency, the Borrower agrees, as a separate obligation and notwithstanding any such
judgment or payment, to indemnify such Lender against such loss.



5. REPRESENTATIONS AND WARRANTIES.





5.1 Representations and Warranties.



The Loan Parties, jointly and severally, represent and warrant to the Administrative Agent and
each of the Lenders as follows:



(a) Organization and Qualification; Power and Authority; Compliance With Laws; Title to
Properties; Event of Default.



Each Loan Party and each Subsidiary of each Loan Party (i) is a corporation, partnership or
limited liability company duly organized, validly existing and in good standing under the laws of
its jurisdiction of organization, (ii) has the lawful power to own or lease its properties and to
engage in the business it presently conducts or proposes to conduct, (iii) is duly licensed or
qualified and in good standing in each jurisdiction listed on Schedule 5.1(a) and in all
other jurisdictions where the property owned or leased by it or the nature of the business
transacted by it or both makes such licensing or qualification necessary except where the failure
to be so qualified could not reasonably be expected to result in a Material Adverse Change, (iv)
has full power to enter into, execute, deliver and carry out this Agreement and the other Loan
Documents to which it is a party, to incur the Indebtedness contemplated by the Loan Documents and
to perform its Obligations under the Loan Documents to which it is a party, and all such actions
have been duly authorized by all necessary proceedings on its part, (v) is in compliance in all
material respects with all applicable Laws (other than Environmental Laws which are specifically
addressed in Section 5.1(n) [Environmental Matters]) in all jurisdictions in which any Loan
Party or Subsidiary of any Loan Party is presently or will be doing business except where the
failure to do so would not constitute a Material Adverse Change, and (vi) has good and marketable
title to or valid leasehold interest in all properties, assets and other rights which it purports
to own or lease or which are reflected as owned or leased on its books and records, free and clear
of all Liens and encumbrances except Permitted Liens. No Event of Default or Potential Default
exists or is continuing.


 


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(b) Subsidiaries and Owners; Investment Companies.



Schedule 5.1(b) states (i) the name of each of the Parent’s Subsidiaries, its
jurisdiction of organization and the amount, percentage and type of equity interests in such
Subsidiary (the “Subsidiary Equity Interests”), (ii) the amount, percentage and type of
each equity interest in the Borrower (the “Borrower Equity Interests”), all of which is
owned by the Parent, (iii) the name of each other Loan Party, its jurisdiction of organization, and
whether such Loan Party is a public company, and, if not, the owners and ownership percentages of
the equity of such Loan Party and (iv) any options, warrants or other rights outstanding to
purchase any such equity interests referred to in clauses (i), (ii) or (iii) (collectively the
“Equity Interests”). The Loan Parties have good and marketable title to all of the Equity
Interests they purport to own, free and clear in each case of any Lien and all such Equity
Interests been validly issued, fully paid and nonassessable. None of the Loan Parties or
Subsidiaries of any Loan Party is an “investment company” registered or required to be registered
under the Investment Company Act of 1940 or under the “control” of an “investment company” as such
terms are defined in the Investment Company Act of 1940 and shall not become such an “investment
company” or under such “control.”




(c) Validity and Binding Effect.



This Agreement and each of the other Loan Documents (i) has been duly and validly executed and
delivered by each Loan Party, and (ii) constitutes, or will constitute, legal, valid and binding
obligations of each Loan Party which is or will be a party thereto, enforceable against such Loan
Party in accordance with its terms except to the extent that enforceability of any Loan Document
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforceability of creditors’ rights generally or limiting the rights of specific
performance.




(d) No Conflict; Material Agreements; Consents.



Neither the execution and delivery of this Agreement or the other Loan Documents by any Loan
Party nor the consummation of the transactions herein or therein contemplated or compliance with
the terms and provisions hereof or thereof by any of them will conflict with, constitute a default
under or result in any breach of (i) the terms and conditions of the certificate of incorporation,
bylaws, certificate of limited partnership, partnership agreement, certificate of formation,
limited liability company agreement or other organizational documents of any Loan Party or (ii) any
Law or any material agreement or instrument or order, writ, judgment, injunction or decree to which
any Loan Party or any of its Subsidiaries is a party or by which it or any of its Subsidiaries is
bound or to which it is subject, or result in the creation or enforcement of any Lien, charge or
encumbrance whatsoever upon any property (now or hereafter acquired) of any Loan Party or any of
its Subsidiaries (other than Liens granted under the Loan Documents). There is no default under
such material agreement (referred to above) and none of the Loan Parties or their Subsidiaries is
bound by any contractual obligation, or subject to any restriction in any organization document, or
any requirement of Law which could result in a Material Adverse Change. No consent, approval,
exemption, order or authorization of, or a registration or filing with, any Official Body or any
other Person is required by any Law or any



 


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agreement in connection with the execution, delivery and carrying out of this Agreement and
the other Loan Documents.




(e) Litigation.



Except as set forth on Schedule 5.1(e), there are no actions, suits, proceedings or
investigations pending or, to the knowledge of any Loan Party, threatened against such Loan Party
or any Subsidiary of such Loan Party at law or in equity before any Official Body which
individually or in the aggregate could reasonably be expected to result in any Material Adverse
Change. None of the Loan Parties or any Subsidiaries of any Loan Party is in violation of any
order, writ, injunction or any decree of any Official Body which could reasonably be expected to
result in any Material Adverse Change.




(f) Financial Statements.



(i) Historical Statements. The Loan Parties have delivered to the Administrative Agent copies
of their audited consolidated year-end financial statements for and as of the fiscal year ended
January 2, 2010 (the “Statements”). The Statements were compiled from the books and
records maintained by the Parent’s management, are correct and complete and fairly represent in all
material respects the consolidated financial condition of the Loan Parties as of the respective
dates thereof and the results of operations for the fiscal periods then ended and have been
prepared in accordance with GAAP consistently applied.



(ii) Accuracy of Financial Statements. No Loan Party has any liabilities, contingent or
otherwise, or forward or long-term commitments that are not disclosed in the Statements or in the
notes thereto, and except as disclosed therein there are no unrealized or anticipated losses from
any commitments of any Loan Party which may cause a Material Adverse Change. Since January 2,
2010, no Material Adverse Change has occurred.




(g) Margin Stock.



None of the Loan Parties or any Subsidiaries of any Loan Party engages or intends to engage
principally, or as one of its important activities, in the business of extending credit for the
purpose, immediately, incidentally or ultimately, of purchasing or carrying margin stock (within
the meaning of Regulation U, T or X as promulgated by the Board of Governors of the Federal Reserve
System). No part of the proceeds of any Loan has been or will be used, immediately, incidentally
or ultimately, to purchase or carry any margin stock or to extend credit to others for the purpose
of purchasing or carrying any margin stock or which is inconsistent with the provisions of the
regulations of the Board of Governors of the Federal Reserve System. None of the Loan Parties or
any Subsidiary of any Loan Party holds or intends to hold margin stock in such amounts that more
than 25% of the reasonable value of the assets of any Loan Party or Subsidiary of any Loan Party
are or will be represented by margin stock.




(h) Full Disclosure.



Neither this Agreement nor any other Loan Document, nor any written certificate, statement,
agreement or other documents furnished to the Administrative Agent or any Lender in connection
herewith or therewith, contains any untrue statement of a material fact



 


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or omits to state a material fact necessary in order to make the statements contained herein
and therein, in light of the circumstances under which they were made, not misleading. There is no
fact known to any Loan Party which materially adversely affects the business, property, assets,
financial condition, results of operations or prospects of any Loan Party or Subsidiary of any Loan
Party which has not been set forth in this Agreement or in the certificates, statements, agreements
or other documents furnished in writing to the Administrative Agent and the Lenders prior to or at
the date hereof in connection with the transactions contemplated hereby.




(i) Taxes.



All federal, state, and material local and other tax returns required to have been filed with
respect to each Loan Party and each Subsidiary of each Loan Party have been filed, and payment or
adequate provision has been made for the payment of all taxes, fees, assessments and other
governmental charges which have or may become due pursuant to said returns or to assessments
received, except to the extent that such taxes, fees, assessments and other charges are being
contested in good faith by appropriate proceedings diligently conducted and for which such reserves
or other appropriate provisions, if any, as shall be required by GAAP shall have been made.




(j) Patents, Trademarks, Copyrights, Licenses, Etc.



Each Loan Party and each Subsidiary of each Loan Party owns or possesses all the material
patents, trademarks, service marks, trade names, copyrights, licenses, registrations, franchises,
permits and rights necessary to own and operate its properties and to carry on its business as
presently conducted and planned to be conducted by such Loan Party or Subsidiary, without, to the
best of the knowledge of the Loan Parties, conflict with the rights of others which could
reasonably be expected to result in a Material Adverse Change.




(k) Liens in the Collateral.



The Liens in the Collateral granted to the Administrative Agent for the benefit of the Lenders
pursuant to the Patent, Trademark and Copyright Assignment, the Pledge Agreement and the Security
Agreement (collectively, the “Collateral Documents”) constitute and will continue to
constitute a Prior Security Interest. All filing fees and other expenses in connection with the
perfection of such Liens have been or will be paid by the Borrower.




(l) Insurance.



The properties of each Loan Party and each of its Subsidiaries are insured pursuant to
policies and other bonds which are valid and in full force and effect and which provide adequate
coverage from reputable and financially sound insurers in amounts sufficient to insure the assets
and risks of each such Loan Party and Subsidiary in accordance with prudent business practice in
the industry of such Loan Parties and Subsidiaries.




(m) ERISA Compliance.



Each Plan is in compliance in all material respects with the applicable provisions of ERISA,
the Code and other federal or state Laws. Each Plan that is intended to



 


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qualify under Section 401(a) of the Code has received a favorable determination letter from
the IRS or is the subject of a favorable opinion letter or an application for such a letter from
the IRS is currently being processed by the IRS with respect thereto and, to the best knowledge of
the Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification.
The Borrower and each ERISA Affiliate have made all required contributions to each Plan subject to
Section 412 of the Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with respect to any Plan. No
ERISA Event has occurred or is reasonably expected to occur; no Pension Plan has any unfunded
pension liability (i.e. excess of benefit liabilities over the current value of that Pension Plan’s
assets, determined in accordance with the assumptions used for funding the Pension Plan for the
applicable plan year); neither the Borrower nor any ERISA Affiliate has incurred, or reasonably
expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other
than premiums due and not delinquent under Section 4007 of ERISA); neither the Borrower nor any
ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has
occurred which, with the giving of notice under Section 4219 of ERISA, would result in such
liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and neither
the Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections
4069 or 4212(c) of ERISA.




(n) Environmental Matters.



Each Loan Party is and, to the knowledge of each respective Loan Party and each of its
Subsidiaries is and has been in material compliance with applicable Environmental Laws except as
disclosed on Schedule 5.1(n); provided that such matters so disclosed could not in
the aggregate result in a Material Adverse Change.



5.2 Updates to Schedules. Should any of the information or disclosures provided on any of
the Schedules attached hereto become outdated or incorrect in any material respect, the Borrower
shall promptly provide the Administrative Agent in writing with such revisions or updates to such
Schedule as may be necessary or appropriate to update or correct same; provided,
however, that no Schedule shall be deemed to have been amended, modified or superseded by
any such correction or update, nor shall any breach of warranty or representation resulting from
the inaccuracy or incompleteness of any such Schedule be deemed to have been cured thereby, unless
and until the Required Lenders, in their sole and absolute discretion acting in good faith, shall
have accepted in writing such revisions or updates to such Schedule.



6. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT.




The obligation of each Lender to make Loans and of the Issuing Lender to issue Letters of
Credit hereunder is subject to the performance by each of the Loan Parties of its Obligations to be
performed hereunder at or prior to the making of any such Loans or issuance of such Letters of
Credit and to the satisfaction of the following further conditions:


 


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6.1 First Loans and Letters of Credit.




(a) Deliveries.



On the Closing Date (except as expressly set forth below), the Administrative Agent shall have
received each of the following in form and substance satisfactory to the Administrative Agent:



(i) A certificate of each of the Loan Parties signed by an Authorized Officer, dated the
Closing Date stating that the Loan Parties are in compliance with each of its representations,
warranties, covenants and conditions hereunder and no Event of Default or Potential Default exists
and no Material Adverse Change has occurred since the date of the last audited financial statements
of the Borrower delivered to the Administrative Agent.



(ii) A certificate dated the Closing Date and signed by the Secretary or an Assistant
Secretary of each of the Loan Parties, certifying as appropriate as to: (A) all action taken by
each Loan Party in connection with this Agreement and the other Loan Documents; (B) the names of
the Authorized Officers authorized to sign the Loan Documents and their true signatures; and (C)
copies of its organizational documents as in effect on the Closing Date certified by the
appropriate state official where such documents are filed in a state office (or a certification
that there have been no changes to the organizational documents since last delivered to the
Administrative Agent), together with certificates from the appropriate state officials as to the
continued existence and good standing of each Loan Party in each state where organized or qualified
to do business.



(iii) This Agreement and each of the other Loan Documents signed by an Authorized Officer and
all appropriate financing statements and appropriate stock powers and certificates evidencing the
pledged Collateral; provided that the Loan Parties agree to take all action to
perfect, at the Loan Parties’ cost, the Administrative Agent’s lien in sixty five percent (65%) of
the equity in first tier Foreign Subsidiaries pursuant to the Pledge Agreement within ninety (90)
days after the Closing Date or such longer period of time agreed to by the Administrative Agent.



(iv) A written opinion of counsel for the Loan Parties, dated the Closing Date and as to the
matters set forth in Schedule 6.1(a).



(v) Evidence that adequate insurance required to be maintained under this Agreement is in full
force and effect, with additional insured, mortgagee and lender loss payable special endorsements
attached thereto in form and substance satisfactory to the Administrative Agent and its counsel
naming the Administrative Agent as additional insured, mortgagee and lender loss payee.



(vi) A duly completed Compliance Certificate as of the last day of the fiscal quarter of the
Borrower most recently ended prior to the Closing Date, signed by an Authorized Officer of the
Borrower;



(vii) Copies of all material consents required to effectuate the transactions contemplated
hereby;


 


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(viii) A Lien search in acceptable scope and with results acceptable to the Administrative
Agent showing the Liens in favor of the Administrative Agent to be a Prior Security Interest,
provided that the Loan Parties agree to provide the Administrative Agent with a Lien search
of the real properties owned by any of the Loan Parties or their Subsidiaries within ninety (90)
days of the Closing Date, showing no Liens against any such real estate except for Permitted Liens;



(ix) Use commercially reasonable efforts to obtain an executed landlord’s waiver in form and
substance acceptable to the Administrative Agent from the lessor for each leased Collateral
location as required under the Security Agreement; and



(x) Such other documents in connection with such transactions as the Administrative Agent or
said counsel may reasonably request.




(b) Payment of Fees.




The Borrower shall have paid all fees payable on or before the Closing Date.




(c) Completion of Due Diligence.



Each of the Administrative Agent and the Lenders shall have completed its due diligence on the
Loan Parties and shall be satisfied with the results thereof, including without limitation, with
respect to creditworthiness, ERISA matters, Environmental Law matters, and labor and employment
matters.



6.2 Each Loan or Letter of Credit. At the time of making any Loans or issuing any Letters
of Credit and after giving effect to the proposed extensions of credit: the representations,
warranties and covenants of the Loan Parties shall then be true in all material respects and no
Event of Default or Potential Default shall have occurred and be continuing; the making of the
Loans or issuance of such Letter of Credit shall not contravene any Law applicable to any Loan
Party or Subsidiary of any Loan Party or any of the Lenders; and the Borrower shall have delivered
to the Administrative Agent a duly executed and completed Loan Request or to the Issuing Lender an
application for a Letter of Credit, as the case may be.



7. COVENANTS.




The Loan Parties, jointly and severally, covenant and agree that until Payment in Full, the
Loan Parties shall comply at all times with the following covenants:




7.1 Affirmative Covenants.




(a) Preservation of Existence, Etc.



Each Loan Party shall, and shall cause each of its Subsidiaries to, maintain its legal
existence as a corporation, limited partnership or limited liability company and its license or
qualification and good standing in each jurisdiction in which its ownership or lease of property or
the nature of its business makes such license or qualification necessary, except as



 


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otherwise expressly (i) required by subsection (j) of this Section 7.1, or (ii)
permitted in Section 7.2(f) [Liquidations, Mergers, Etc.].




(b) Payment of Liabilities, Including Taxes, Etc.



Each Loan Party shall, and shall cause each of its Subsidiaries to, duly pay and discharge all
liabilities to which it is subject or which are asserted against it, promptly as and when the same
shall become due and payable, including all taxes, assessments and governmental charges upon it or
any of its properties, assets, income or profits, prior to the date on which penalties attach
thereto, except to the extent that such liabilities, including taxes, assessments or charges, are
being contested in good faith and by appropriate and lawful proceedings diligently conducted and
for which such reserve or other appropriate provisions, if any, as shall be required by GAAP shall
have been made.




(c) Maintenance of Insurance.



Each Loan Party shall, and shall cause each of its Subsidiaries to, insure its properties and
assets against loss or damage by fire and such other insurable hazards as such assets are commonly
insured (including fire, extended coverage, property damage, workers’ compensation, public
liability and business interruption insurance) and against other risks (including errors and
omissions) in such amounts as similar properties and assets are insured by prudent companies in
similar circumstances carrying on similar businesses, and with reputable and financially sound
insurers, including self-insurance to the extent customary, all as reasonably determined by the
Administrative Agent. The Loan Parties shall comply with the covenants and provide the endorsement
set forth on Schedule 7.2(c) relating to property and related insurance policies covering
the Collateral.




(d) Maintenance of Properties and Leases.



Each Loan Party shall, and shall cause each of its Subsidiaries to, maintain in good repair,
working order and condition (ordinary wear and tear excepted) in accordance with the general
practice of other businesses of similar character and size, all of those properties useful or
necessary to its business, and from time to time, such Loan Party will make or cause to be made all
appropriate repairs, renewals or replacements thereof.




(e) Visitation Rights.



Each Loan Party shall, and shall cause each of its Subsidiaries to, permit any of the officers
or authorized employees or representatives of the Administrative Agent or any of the Lenders to
visit and inspect any of its properties and to examine and make excerpts from its books and records
and discuss its business affairs, finances and accounts with its officers, all in such detail and
at such times and as often as any of the Lenders may reasonably request, provided that each
Lender shall provide the Borrower and the Administrative Agent with reasonable notice prior to any
visit or inspection. In the event any Lender desires to conduct an audit of any Loan Party, such
Lender shall make a reasonable effort to conduct such audit contemporaneously with any audit to be
performed by the Administrative Agent.


 


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(f) Keeping of Records and Books of Account.



Each Loan Party shall maintain and keep proper books of record and account which enable the
Borrower and its Subsidiaries to issue financial statements in accordance with GAAP and as
otherwise required by applicable Laws of any Official Body having jurisdiction over the Borrower or
any Subsidiary of the Borrower, and in which full, true and correct entries shall be made in all
material respects of all its dealings and business and financial affairs.




(g) Compliance with Laws; Use of Proceeds.



Each Loan Party shall, and shall cause each of its Subsidiaries to, comply with all applicable
Laws, including all Environmental Laws, in all respects; provided that it shall not be
deemed to be a violation of this Section 7.1(g) if any failure to comply with any Law would
not result in fines, penalties, remediation costs, other similar liabilities or injunctive relief
which in the aggregate would constitute a Material Adverse Change. The Loan Parties will use the
Letters of Credit and the proceeds of the Loans only in accordance with Section 2.7 [Use of
Proceeds] and as permitted by applicable Law.




(h) Further Assurances.



Each Loan Party shall, from time to time, at its expense, faithfully preserve and protect the
Administrative Agent’s Lien on and Prior Security Interest in the Collateral and all other real and
personal property of the Loan Parties whether now owned or hereafter acquired as a continuing first
priority perfected Lien, subject only to Permitted Liens, and shall do such other acts and things
as the Administrative Agent in its sole discretion may deem reasonably necessary or advisable from
time to time in order to preserve, perfect and protect the Liens granted under the Loan Documents
and to exercise and enforce its rights and remedies thereunder with respect to the Collateral.
Without limiting the generality of the foregoing, the Loan Parties shall continue to use
commercially reasonable efforts to obtain (i) executed landlord’s waivers in form and substance
acceptable to the Administrative Agent from the lessors of Collateral locations now or hereafter
leased, as required by the Security Agreement, and (ii) executed account control agreements in form
and substance acceptable to the Administrative Agent from each financial institution, other than
the Administrative Agent, at which any Loan Party maintains a deposit account if required in
writing by the Administrative Agent.




(i) Anti-Terrorism Laws.



None of the Loan Parties is or shall be (i) a Person with whom any Lender is restricted from
doing business under Executive Order No. 13224 or any other Anti-Terrorism Law, (ii) engaged in any
business involved in making or receiving any contribution of funds, goods or services to or for the
benefit of such a Person or in any transaction that evades or avoids, or has the purpose of evading
or avoiding, the prohibitions set forth in any Anti-Terrorism Law, or (iii) otherwise in violation
of any Anti-Terrorism Law. The Loan Parties shall provide to the Lenders any certifications or
information that a Lender requests to confirm compliance by the Loan Parties with Anti-Terrorism
Laws.


 


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7.2 Negative Covenants.




(a) Indebtedness.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, at any time
create, incur, assume or suffer to exist any Indebtedness, except:




(i) Indebtedness under the Loan Documents;



(ii) Existing Indebtedness as set forth on Schedule 7.2(a) (including any extensions,
refinancings or renewals thereof; provided there is no increase in the amount thereof or
other significant change in the terms thereof unless otherwise specified on
Schedule 7.2(a);




(iii) Capitalized and operating leases;




(iv) Indebtedness secured by Purchase Money Security Interests not exceeding $10,000,000.00;



(v) Indebtedness of a Loan Party to another Loan Party which is subordinated pursuant to the
Intercompany Subordination Agreement;



(vi) Indebtedness for borrowed money which is subordinated to the Obligations pursuant to a
subordination agreement on terms and conditions satisfactory to the Administrative Agent in its
sole discretion, or unsecured Indebtedness for borrowed money, provided that the
principal amount of any such Indebtedness coming due prior to April 1, 2013, when added to the
amount of dividends and distributions (including stock repurchases) paid as permitted pursuant to
Section 7.2(e)(ii) and the amount of repayments, redemptions and repurchases of
Indebtedness paid as permitted pursuant to Section 7.2(n)(ii) shall not exceed in the
aggregate $50,000,000.00; and provided further that (A) at the time of
incurrence there does not exist any Event of Default or Potential Default, and (B) after giving
effect thereto, the Loan Parties would remain in compliance with clauses (o), (p) and (s) of this
Section 7.2;



(vii) Any (A) Lender Provided Interest Rate Hedge, (B) other Interest Rate Hedge approved by
the Administrative Agent, for or (C) Indebtedness under any Other Lender Provided Financial
Services Product.




(b) Liens.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, at any time
create, incur, assume or suffer to exist any Lien on any of its property or assets, tangible or
intangible, now owned or hereafter acquired, or agree or become liable to do so, except Permitted
Liens.




(c) Guaranties.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, at any time,
directly or indirectly, become or be liable in respect of any Guaranty, or assume,



 


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guarantee, become surety for, endorse or otherwise agree, become or remain directly or
contingently liable upon or with respect to any obligation or liability of any other Person except
with respect to Indebtedness of a Loan Party permitted under Section 7.2(a) [Indebtedness].




(d) Loans and Investments.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, at any time
make or suffer to remain outstanding any loan or advance to, or purchase, acquire or own any stock,
bonds, notes or securities of, or any partnership interest (whether general or limited) or limited
liability company interest in, or any other investment or interest in, or make any capital
contribution to, any other Person, or agree, become or remain liable to do any of the foregoing,
except:




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



(ii) advances to employees to meet expenses incurred by such employees in the ordinary course
of business;




(iii) Permitted Investments;




(iv) loans, advances and investments in other Loan Parties;




(v) investments existing on the Closing Date as described on Schedule 7.2(d); and



(vi) other investments (not otherwise prohibited by Section 7.2(f) [Liquidation,
Mergers, Consolidations, Acquisitions], Section 7.2(h) [Affiliate Transactions] or
Section 7.2(i) [Subsidiaries, Partnerships and Joint Ventures]) provided
that (A) at the time of any such investment there exists no Event of Default or Potential
Default; (B) if such investment had occurred during the fiscal quarter last ended, the Loan Parties
would have been in compliance with all of the terms and conditions of this Agreement, Section
7.2(q) [Minimum Liquidity]; (C) if such investment had occurred during the fiscal quarter last
ended, the Senior Leverage Ratio would have been equal to or less than 2.0 to 1.0; and (D) the
aggregate amount of such investments, (computed for each investment at the time such investment is
made) shall not exceed 20% of the Loan Parties’ Consolidated Net Worth.




(e) Dividends and Related Distributions.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, make or pay,
or agree to become or remain liable to make or pay, any dividend or other distribution of any
nature (whether in cash, property, securities or otherwise) on account of or in respect of its
shares of capital stock, partnership interests or limited liability company interests on account of
the purchase, redemption, retirement or acquisition of its shares of capital stock (or warrants,
options or rights therefor), partnership interests or limited liability company interests, except
(i) dividends or other distributions payable to another Loan Party; and (ii) dividends or other
distributions, including stock repurchases, made when there exists no Event of Default or Potential
Default provided that the aggregate of all such dividends and distributions
(including



 


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stock repurchases) paid, when added to the aggregate of all principal of Indebtedness
permitted pursuant to Section 7.2(a)(vi) coming due prior to April 1, 2013, and repayments,
repurchases or redemptions of Indebtedness paid as permitted under Section 7.2(n)(ii) shall
not exceed $50,000,000.00.




(f) Liquidations, Mergers, Consolidations, Acquisitions.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, dissolve,
liquidate or wind-up its affairs, or become a party to any merger or consolidation, or acquire by
purchase, lease or otherwise all or substantially all of the assets or capital stock of any other
Person; provided that (i) any Loan Party other than the Borrower may consolidate with or
merge into another Loan Party which is wholly-owned by one or more of the other Loan Parties; (ii)
any Loan Party may be liquidated if such Loan Party has no assets or liabilities; and (iii) any
Loan Party shall be entitled to acquire by purchase or by merger all of the ownership interest, or
substantially all of the assets, of a Person as long as each of the following requirements are met



(A) there does not then, or immediately after such acquisition, exist any Potential Default or
Event of Default;



(B) if any Loan Party acquires the ownership interests in a Person, such Person shall execute
a Guarantor Joinder and other documents and join this Agreement simultaneously with such
acquisition, as contemplated by Section 7.2(i) [Subsidiaries, Partnerships and Joint
Ventures];



(C) the boards of directors of the Loan Party acquiring a Person and the Person which is being
acquired each approving such acquisition, and certified copies thereof shall have been delivered to
the Administrative Agent;



(D) the business acquired shall be substantially the same as or complementary to one or more
lines of business conducted by the Loan Parties prior to such acquisition;



(E) the Loan Parties shall deliver to the Administrative Agent not less than five (5) Business
Days prior to such acquisition, evidence and a certification thereto, all in form and substance
acceptable to the Administrative Agent (1) that, if such acquisition had occurred during the fiscal
quarter last ended, the Loan Parties would have been in compliance with all of the terms and
conditions of this Agreement, including Section 7.2(q) [Minimum Liquidity], and (2) that if
such acquisition had occurred during the fiscal quarter last ended, the Senior Leverage Ratio would
have been equal to or less than 2.0 to 1.0; and



(F) the Loan Parties shall deliver to the Administrative Agent not less than five (5) Business
Days prior to such acquisition, copies of any agreements entered into or proposed to be entered
into in connection therewith and shall deliver to the Administrative Agent such other information
as it may request, all such agreements and information shall be reasonably satisfactory to the
Administrative Agent.


 


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(g) Dispositions of Assets or Subsidiaries.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, sell, convey,
assign, lease, abandon or otherwise transfer or dispose of, voluntarily or involuntarily, any of
its properties or assets, tangible or intangible (including sale, assignment, discount or other
disposition of accounts, contract rights, chattel paper, equipment or general intangibles with or
without recourse or of capital stock, shares of beneficial interest, partnership interests or
limited liability company interests of a Subsidiary of such Loan Party), except:




(i) transactions involving the sale of inventory in the ordinary course of business;



(ii) any sale, transfer or lease of assets in the ordinary course of business which are no
longer necessary or required in the conduct of such Loan Party’s or such Subsidiary’s business;



(iii) any sale, transfer or lease of assets by any wholly owned Subsidiary of such Loan Party
to another Loan Party;



(iv) any sale, transfer or lease of assets in the ordinary course of business which are
replaced by substitute assets; provided such substitute assets are subject to the Prior
Security Interest in favor of the Administrative Agent; or



(v) any sale, transfer or lease of assets, other than those specifically excepted pursuant to
clauses (i) through (iv) above, which is approved by the Required Lenders so long as the after-tax
proceeds (as reasonably estimated by the Borrower) are applied as a mandatory prepayment of the
Loans in accordance with the provisions of Section 4.7(a) [Sale of Assets] above.




(h) Affiliate Transactions.



No Loan Parties shall, and no Loan Party shall permit any of its Subsidiaries to, enter into
or carry out any transaction (including purchasing property or services from or selling property or
services to any Affiliate of any Loan Party) unless such transaction is not otherwise prohibited by
this Agreement, is entered into in the ordinary course of business upon fair and reasonable
arm’s-length terms and conditions which are fully disclosed to the Administrative Agent and is in
accordance with all applicable Law.




(i) Subsidiaries, Partnerships and Joint Ventures.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to own or create
directly or indirectly any Domestic Subsidiaries other than (i) any Domestic Subsidiary which has
joined this Agreement as Guarantor on the Closing Date; (ii) 935 HQ Associates, LLC,
provided that it owns no assets other than the land and improvements constituting
935 First Avenue, King of Prussia, PA 19406; and (iii) any Domestic Subsidiary formed after the
Closing Date which joins this Agreement as a Guarantor by delivering to the Administrative Agent
(A) a signed Guarantor Joinder; (B) documents in the forms described in clauses (i), (ii), (iii),
(v), (vi), (vii), (viii), (ix) and if required by the Administrative Agent, (iv)



 


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and (x) of Section 6.1 [First Loans and Letters of Credit] modified as appropriate;
and (C) documents necessary to grant and perfect Prior Security Interests to the Administrative
Agent for the benefit of the Lenders in the equity interests of, and Collateral held by, such
Subsidiary. No Loan Party shall become or agree to become a party to a Joint Venture, unless (1)
it is not otherwise prohibited by Section 7.2(f) [Liquidation, Merger, Consolidations,
Acquisitions] or Section 7.2(h) [Affiliate Transactions], (2) the conditions set forth in
Section 7.2(d)(vi)(A)-(D) have been met, and (3) to the extent such Joint Venture
would be a Subsidiary, the conditions set forth in this Section 7.2(i) have been met.




(j) Continuation of or Change in Business.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, engage in any
business that is not similar or complementary to the business in which they engage as of the
Closing Date, and such Loan Party or Subsidiary shall not permit any material change in such
business.




(k) Fiscal Year.



The Parent shall not, and shall not permit Borrower or any other Loan Party to, change its
fiscal year end from the Saturday nearest to December 31st.




(l) Issuance of Stock.



No Loan Party (other than the Parent) shall, and no Loan Party shall permit any of its
Subsidiaries to, issue any additional shares of its capital stock or any options, warrants or other
rights in respect thereof other than the issuance of capital stock by one Loan Party to another
Loan Party provided that such capital stock shall be subject to the Pledge
Agreement and all certificates evidencing such capital stock shall be delivered immediately upon
issuance to the Administrative Agent together with stock powers executed in blank.




(m) Changes in Organizational Documents.



No Loan Party shall, and no Loan Party shall permit any of its Subsidiaries to, amend in any
respect its certificate of incorporation (including any provisions or resolutions relating to
capital stock), by-laws, certificate of limited partnership, partnership agreement, certificate of
formation, limited liability company agreement or other organizational documents without providing
at least thirty (30) calendar days’ prior written notice to the Administrative Agent and the
Lenders and, in the event such change would be adverse to the Lenders as determined by the
Administrative Agent in its sole discretion, obtaining the prior written consent of the Required
Lenders.




(n) Repayment of Indebtedness.



The Loan Parties shall not prepay, redeem or repurchase any Indebtedness except (i)
repurchases or early redemptions of the Parent’s 3% Convertible Notes due 2025 in the aggregate
amount of $57,500,000.00 as identified on Schedule 7.2(a), or (ii) repayments, redemptions
or repurchases of other Indebtedness in an aggregate principal amount under this clause (ii) that,
when added to the aggregate amount of Indebtedness permitted under


 


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Section 7.2(a)(vi) and the aggregate amount of dividends and distributions (including
stock repurchases) paid as permitted pursuant to Section 7.2(e)(ii), shall not exceed
$50,000,000.00.




(o) Minimum Fixed Charge Coverage Ratio.



The Loan Parties shall not permit the Fixed Charge Coverage Ratio, calculated as of the end of
each fiscal quarter for the four (4) fiscal quarters then ended, to be less than 2.5 to 1.0.




(p) Maximum Leverage Ratio.




The Loan Parties shall not at any time permit the Leverage Ratio to exceed 4.0 to 1.0.




(q) Minimum Liquidity.



The Loan Parties shall not permit cash and Cash Equivalents to be less than $30,000,000.00 as
of the end of any fiscal quarter, of which not less than $25,000,000.00 shall be owned by the
Parent, the Borrower and/or the Domestic Subsidiaries and maintained in the United States.




(r) Foreign Subsidiaries.



The Loan Parties shall not permit more than the following portion of their consolidated total
assets to be owned by Foreign Subsidiaries:



	 	 	 
	Maximum Percentage	 	Period
	 
	 	 
	25%
	 	Through fiscal year end 2009
	 
	 	 
	35%
	 	During fiscal year 2010 and through fiscal year end 2011
	 
	 	 
	40%
	 	after fiscal year end 2011







(s) Maximum Senior Leverage Ratio.




The Loan Parties shall not at any time permit the Senior Leverage Ratio to exceed 2.5 to 1.0.



7.3 Reporting Requirements. The Loan Parties will furnish or cause to be furnished to the
Administrative Agent and each of the Lenders.




(a) Quarterly Financial Statements.



As soon as available and in any event within forty-five (45) calendar days after the end of
each of the first three fiscal quarters in each fiscal year, financial statements of the Parent,
consisting of a consolidated and consolidating balance sheet as of the end of such fiscal quarter
and related consolidated and consolidating statements of income, retained earnings and cash flows
for the fiscal quarter then ended and the fiscal year through that date, all in



 


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reasonable detail and certified (subject to normal year-end audit adjustments) by the Chief
Executive Officer, President or Chief Financial Officer of the Parent as having been prepared in
accordance with GAAP, consistently applied, and setting forth in comparative form the respective
financial statements for the corresponding date and period in the previous fiscal year, it being
understood and agreed that the delivery of the Parent’s Form 10-Q (or transmission of the weblink
where such Form 10-Q can be found), promptly after the filing thereof with the Securities and
Exchange Commission shall satisfy the requirements of this subsection with respect to consolidated
financial statements and reports.




(b) Annual Financial Statements.



As soon as available and in any event within one hundred twenty (120) days after the end of
each fiscal year of the Borrower, financial statements of the Parent consisting of a consolidated
and consolidating balance sheet as of the end of such fiscal year, and related consolidated and
consolidating statements of income, retained earnings and cash flows for the fiscal year then
ended, all in reasonable detail and setting forth in comparative form the financial statements as
of the end of and for the preceding fiscal year, and certified by independent certified public
accountants of nationally recognized standing satisfactory to the Administrative Agent, it being
understood and agreed that the delivery of the Parent’s Form 10-K (or transmission of the weblink
where such Form 10-K can be found), promptly after the filing thereof with the Securities and
Exchange Commission together with a certificate or report of such independent certified public
accountants shall satisfy the requirements of this subsection with respect to consolidated
financial statements and reports. The certificate or report of accountants shall be free of
qualifications (other than any consistency qualification that may result from a change in the
method used to prepare the financial statements as to which such accountants concur) and shall not
indicate the occurrence or existence of any event, condition or contingency which would materially
impair the prospect of payment or performance of any covenant, agreement or duty of any Loan Party
under any of the Loan Documents.




(c) Certificate of the Borrower.



Concurrently with the financial statements of the Borrower furnished to the Administrative
Agent and to the Lenders pursuant to Section 7.3(a) [Quarterly Financial Statements] and
Section 7.3(b) [Annual Financial Statements], a certificate (each a “Compliance
Certificate”) of the Borrower signed by the Chief Executive Officer, President or Chief
Financial Officer of the Borrower, in the form of Exhibit 7.3(c).




(d) Notices.



(i) Default. Promptly after any officer of any Loan Party has learned of the occurrence of an
Event of Default or Potential Default, a certificate signed by an Authorized Officer setting forth
the details of such Event of Default or Potential Default and the action which such Loan Party
proposes to take with respect thereto.



(ii) Litigation. Promptly after the commencement thereof, notice of all actions, suits,
proceedings or investigations before or by any Official Body or any other Person against any Loan
Party or Subsidiary of any Loan Party which relate to the Collateral, involve a



 


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claim or series of claims in excess of $2,000,000.00 or which if adversely determined would
constitute a Material Adverse Change.



(iii) Organizational Documents. Within the time limits set forth in Section 7.2(m)
[Changes in Organizational Documents], any amendment to the organizational documents of any Loan
Party.



(iv) Erroneous Financial Information. Immediately in the event that any Loan Party or its
accountants conclude or advise that any previously issued financial statement, audit report or
interim review should no longer be relied upon or that disclosure should be made or action should
be taken to prevent future reliance.




(v) ERISA Event. Immediately upon the occurrence of any ERISA Event.



(vi) Other Reports. Promptly upon their becoming available to any Loan Party or filed with the
Securities and Exchange Commission:



(A) Annual Budget. The annual budget, any forecasts or projections of the Borrower and the
other Loan Parties and any supplements or updates thereto, to be supplied with the annual financial
statements required under Section 7.3(b) [Annual Financial Statements] and at such times as
the Administrative Agent may reasonably require, from time to time.



(B) Management Letters. Any reports including management letters submitted to the Borrower or
any other Loan Party by independent accountants in connection with any annual, interim or special
audit,



(C) SEC Reports; Shareholder Communications. Reports, including Forms 10-K, 10-Q and 8-K,
registration statements and prospectuses and other shareholder communications, filed by any Loan
Party with the Securities and Exchange Commission (or transmission of the weblink where such
reports, statements or other communications can be found).



(D) Other Information. Such other reports and information as any of the Lenders may from time
to time reasonably request.



8. DEFAULT.




8.1 Events of Default. An Event of Default means the occurrence or existence of any one or
more of the following events or conditions (whatever the reason therefor and whether voluntary,
involuntary or effected by operation of Law):




(a) Payments Under Loan Documents.



The Borrower shall fail to pay any principal of any Loan (including scheduled installments,
mandatory prepayments or the payment due at maturity), Reimbursement Obligation or Letter of Credit
Obligation or any interest on any Loan , Reimbursement



 


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Obligation or Letter of Credit Obligation or any other amount owing hereunder or under the
other Loan Documents on the date on which such principal, interest or other amount becomes due in
accordance with the terms hereof or thereof;




(b) Breach of Warranty.



Any representation or warranty made at any time by any of the Loan Parties herein or by any of
the Loan Parties in any other Loan Document, or in any certificate, other instrument or statement
furnished pursuant to the provisions hereof or thereof, shall prove to have been false or
misleading in any material respect as of the time it was made or furnished;




(c) Breach of Negative Covenants or Visitation Rights.



Any of the Loan Parties shall default in the observance or performance of any covenant
contained in Section 7.1(e) [Visitation Rights] or Section 7.2 [Negative
Covenants];




(d) Breach of Other Covenants.



Any of the Loan Parties shall default in the observance or performance of any other covenant,
condition or provision hereof or of any other Loan Document and such default shall continue
unremedied for a period of thirty (30) Business Days;




(e) Defaults in Other Agreements or Indebtedness.



A default or event of default shall occur at any time under the terms of any other agreement
involving borrowed money or the extension of credit or any other Indebtedness under which any Loan
Party or Subsidiary of any Loan Party may be obligated as a borrower or guarantor in excess of
$5,000,000.00 in the aggregate, and such breach, default or event of default consists of the
failure to pay (beyond any period of grace permitted with respect thereto, whether waived or not)
any Indebtedness when due (whether at stated maturity, by acceleration or otherwise) or if such
breach or default permits or causes the acceleration of any Indebtedness (whether or not such right
shall have been waived) or the termination of any commitment to lend, or if there occurs any
“Fundamental Change” under the Indenture dated as of July 2, 2007, between the Parent and The Bank
of New York, as trustee, providing for the issuance of the Parent’s 2.50% Convertible Senior Notes
due 2027, or a “Designated Event” under the Indenture dated as of June 1, 2005 between the Parent
and JP Morgan Chase Bank, NA as trustee providing for the issuance of the Parent’s 3% Convertible
Notes due 2025, or any other event under either such Indenture which entitles either trustee or any
noteholder to accelerate repayment of any notes issued under either such Indenture, other than an
event that gives rise to a Permitted Payment;




(f) Final Judgments or Orders.



Any final judgments or orders for the payment of money in excess of $1,000,000.00 in the
aggregate shall be entered against any Loan Party or any Subsidiary of any Loan Party by a court
having jurisdiction in the premises, which judgment is not discharged,



 


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vacated, bonded or stayed pending appeal within a period of thirty (30) days from the date of
entry;




(g) Loan Document Unenforceable.



Any of the Loan Documents shall cease to be legal, valid and binding agreements enforceable
against the Loan Party executing the same or such party’s successors and assigns (as permitted
under the Loan Documents) in accordance with the respective terms thereof or shall in any way be
terminated (except in accordance with its terms) or become or be declared ineffective or
inoperative or shall in any way be challenged or contested or cease to give or provide the
respective Liens, security interests, rights, titles, interests, remedies, powers or privileges
intended to be created thereby except if resulting solely from the Administrative Agent’s failure
to file UCC-3 continuation statements in a timely manner;




(h) Uninsured Losses; Proceedings Against Assets.



There shall occur any material uninsured damage to or loss, theft or destruction of any of the
Collateral in excess of $5,000,000.00 or the Collateral or any material portion of the Loan
Parties’ or any of their Subsidiaries’ assets are attached, seized, levied upon or subjected to a
writ or distress warrant; or such come within the possession of any receiver, trustee, custodian or
assignee for the benefit of creditors and the same is not cured within thirty (30) days thereafter;




(i) Events Relating to Plans and Benefit Arrangements.



(i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has
resulted or could reasonably be expected to result in liability of any Loan Party under Title IV of
ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of
$500,000.00 or (ii) the Borrower or any ERISA Affiliate fails to pay when due, after the expiration
of any applicable grace period, any installment payment with respect to its withdrawal liability
under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of
$500,000.00;




(j) Change of Control.



Any person or group of persons (within the meaning of Sections 13(d) or 14(a) of the
Securities Exchange Act of 1934, as amended) other than those shareholders identified on
Schedule 8.1(j) shall have acquired beneficial ownership of (within the meaning of Rule
13d-3 promulgated by the Securities and Exchange Commission under said Act) 25.5% or more of the
voting capital stock of the Parent; (ii) within a period of twelve (12) consecutive calendar
months, individuals who were directors of the Parent on the first day of such period (together with
any new directors whose election by the board of directors or nomination for election by the
shareholders was approved by a vote of the majority of directors then still in office who were
either directors as of the first day of the period or whose election or nomination for election was
previously so approved) shall cease to constitute a majority of the board of directors of the
Parent; or (iii) the Parent ceases to own 100% of the Borrower Equity Interests.


 


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(k) Relief Proceedings.



(i) Relief Proceeding shall have been instituted against any Loan Party or Subsidiary of a
Loan Party and such Relief Proceeding shall remain undismissed or unstayed and in effect for a
period of thirty (30) consecutive days or such court shall enter a decree or order granting any of
the relief sought in such Relief Proceeding, (ii) any Loan Party or Subsidiary of a Loan Party
institutes, or takes any action (other than action to dismiss such Relief Proceeding) in
furtherance of, a Relief Proceeding, or (iii) any Loan Party or any Subsidiary of a Loan Party
ceases to be solvent or admits in writing its inability to pay its debts as they mature.




8.2 Consequences of Event of Default.




(a) Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings.



If an Event of Default specified under Sections 8.1(a) through (j) shall occur and be
continuing, the Lenders and the Administrative Agent shall be under no further obligation to make
Loans and the Issuing Lender shall be under no obligation to issue Letters of Credit and the
Administrative Agent may, and, upon the request of the Required Lenders, shall (i) by written
notice to the Borrower, declare the unpaid principal amount of the Notes then outstanding and all
interest accrued thereon, any unpaid fees and all other Indebtedness of the Borrower to the Lenders
hereunder and thereunder to be forthwith due and payable, and the same shall thereupon become and
be immediately due and payable to the Administrative Agent for the benefit of each Lender without
presentment, demand, protest or any other notice of any kind, all of which are hereby expressly
waived, and (ii) require the Borrower to, and the Borrower shall thereupon, deposit in a
non-interest-bearing account with the Administrative Agent, as cash collateral for its Obligations
under the Loan Documents, an amount equal to the maximum amount currently or at any time thereafter
available to be drawn on all outstanding Letters of Credit, and the Borrower hereby pledges to the
Administrative Agent and the Lenders, and grants to the Administrative Agent and the Lenders a
security interest in, all such cash as security for such Obligations; and




(b) Bankruptcy, Insolvency or Reorganization Proceedings.



If an Event of Default specified under Section 8.1(k) [Relief Proceedings] shall
occur, the Lenders shall be under no further obligations to make Loans hereunder and the Issuing
Lender shall be under no obligation to issue Letters of Credit and the unpaid principal amount of
the Loans then outstanding and all interest accrued thereon, any unpaid fees and all other
Indebtedness of the Borrower to the Lenders hereunder and thereunder shall be immediately due and
payable, without presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived; and




(c) Set-off.



If an Event of Default shall have occurred and be continuing, each Lender, the Issuing Lender,
and each of their respective Affiliates and any participant of such Lender or Affiliate which has
agreed in writing to be bound by the provisions of Section 4.3 [Sharing of Payments by
Lenders] is hereby authorized at any time and from time to time, to the fullest



 


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extent permitted by applicable Law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender, the Issuing Lender or any such
Affiliate or participant to or for the credit or the account of any Loan Party against any and all
of the Obligations of such Loan Party now or hereafter existing under this Agreement or any other
Loan Document to such Lender, the Issuing Lender, Affiliate or participant, irrespective of whether
or not such Lender, Issuing Lender, Affiliate or participant shall have made any demand under this
Agreement or any other Loan Document and although such Obligations of the Borrower or such Loan
Party may be contingent or unmatured or are owed to a branch or office of such Lender or the
Issuing Lender different from the branch or office holding such deposit or obligated on such
Indebtedness. The rights of each Lender, the Issuing Lender and their respective Affiliates and
participants under this Section are in addition to other rights and remedies (including other
rights of setoff) that such Lender, the Issuing Lender or their respective Affiliates and
participants may have. Each Lender and the Issuing Lender agrees to notify the Borrower and the
Administrative Agent promptly after any such setoff and application; provided that
the failure to give such notice shall not affect the validity of such setoff and application; and



(d) Application of Proceeds. From and after the date on which the Administrative Agent
has taken any action pursuant to this Section 8.2 and until all Obligations of the Loan
Parties have been paid in full, any and all proceeds received by the Administrative Agent from any
sale or other disposition of the Collateral, or any part thereof, or the exercise of any other
remedy by the Administrative Agent, shall be applied as follows:



(i) first, to reimburse the Administrative Agent and the Lenders for out-of-pocket costs,
expenses and disbursements, including reasonable attorneys’ and paralegals’ fees and legal
expenses, incurred by the Administrative Agent or the Lenders in connection with realizing on the
Collateral or collection of any Obligations of any of the Loan Parties under any of the Loan
Documents, including advances made by the Lenders or any one of them or the Administrative Agent
for the reasonable maintenance, preservation, protection or enforcement of, or realization upon,
the Collateral, including advances for taxes, insurance, repairs and the like and reasonable
expenses incurred to sell or otherwise realize on, or prepare for sale or other realization on, any
of the Collateral;



(ii) second, to the repayment of all Obligations then due and unpaid of the Loan Parties to
the Lenders or their Affiliates incurred under this Agreement or any of the other Loan Documents or
agreements evidencing Other Lender Provided Financial Services Obligations or agreements evidencing
Lender Provided Interest Rate Hedges, whether of principal, interest, fees, expenses or otherwise
and to Cash Collateralize the Letter of Credit Obligations, in such manner as the Administrative
Agent may determine in its discretion; and



(iii) the balance, if any, as required by Law.



9. THE ADMINISTRATIVE AGENT.




9.1 Appointment and Authority. Each of the Lenders and the Issuing Lender hereby
irrevocably appoints PNC Bank, National Association to act on its behalf as the



 


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Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take
such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent
by the terms hereof or thereof, together with such actions and powers as are reasonably incidental
thereto. The provisions of this Section 9 are solely for the benefit of the Administrative
Agent, the Lenders and the Issuing Lender, and neither the Borrower nor any other Loan Party shall
have rights as a third party beneficiary of any of such provisions.



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



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



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



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



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



The Administrative Agent shall not be liable for any action taken or not taken by it (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Section 10.1
[Modifications, Amendments or Waivers] and Section 8.2 [Consequences of Event of
Default]) or (ii) in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Potential Default or Event of
Default



 


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unless and until notice describing such Potential Default or Event of Default is given to
the Administrative Agent by the Borrower, a Lender or the Issuing Lender.



The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (A) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (B) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (C) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Potential Default or Event of Default, (D) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement,
instrument or document or (E) the satisfaction of any condition set forth in Section 6
[Conditions of Lending and Issuance of Letters of Credit] or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Administrative Agent.



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



9.5 Delegation of Duties. The Administrative Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document by or through any one
or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and powers by or through
their respective Related Parties. The exculpatory provisions of this Section 9 shall apply
to any such sub-agent and to the Related Parties of the Administrative Agent and any such
sub-agent, and shall apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as Administrative Agent.



9.6 Resignation of Administrative Agent. The Administrative Agent may at any time give
notice of its resignation to the Lenders, the Issuing Lender and the Borrower. Upon
receipt of any such notice of resignation, the Required Lenders shall have the right, with approval
from the Borrower (so long as no Event of Default has occurred and is continuing), to appoint a
successor, such approval not to be unreasonably withheld or delayed. If no such



 


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successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within
thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of the Lenders and the Issuing Lender, appoint a
successor Administrative Agent meeting the qualifications set forth above; provided that if
the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective in accordance
with such notice and (a) the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents (except that in the case of any collateral
security held by the Administrative Agent on behalf of the Lenders or the Issuing Lender under any
of the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral
security until such time as a successor Administrative Agent is appointed) and (b) all payments,
communications and determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender and the Issuing Lender directly, until such time as the
Required Lenders appoint a successor Administrative Agent as provided for above in this Section
9.6. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such
successor shall succeed to and become vested with all of the rights, powers, privileges and duties
of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be
discharged from all of its duties and obligations hereunder or under the other Loan Documents (if
not already discharged therefrom as provided above in this Section). The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After the retiring Administrative
Agent’s resignation hereunder and under the other Loan Documents, the provisions of this
Section 9 and Section 10.3 [Expenses; Indemnity; Damage Waiver] shall continue in
effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any of them while the
retiring Administrative Agent was acting as Administrative Agent.



If PNC Bank resigns as Administrative Agent under this Section 9.6, PNC Bank shall
also resign as an Issuing Lender. Upon the appointment of a successor Administrative Agent
hereunder, such successor shall (i) succeed to all of the rights, powers, privileges and duties of
PNC Bank as the retiring Issuing Lender and Administrative Agent and PNC Bank shall be discharged
from all of its respective duties and obligations as Issuing Lender and Administrative Agent under
the Loan Documents, and (ii) issue letters of credit in substitution for the Letters of Credit
issued by PNC Bank, if any, outstanding at the time of such succession or make other arrangement
satisfactory to PNC Bank to effectively assume the obligations of PNC Bank with respect to such
Letters of Credit.



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



 


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action under or based upon this Agreement, any other Loan Document or any related agreement or any
document furnished hereunder or thereunder.



9.8 Administrative Agent’s Fee. The Borrower shall pay to the Administrative Agent a
nonrefundable fee (the “Administrative Agent’s Fee”) under the terms of a letter (the
“Administrative Agent’s Letter”) between the Borrower and Administrative Agent, as amended
from time to time.



9.9 Authorization to Release Collateral and Guarantors. The Lenders and Issuing Lenders
authorize the Administrative Agent to release (a) any Collateral consisting of assets or equity
interests sold or otherwise disposed of in a sale or other disposition or transfer permitted under
Section 7.2(g) [Disposition of Assets or Subsidiaries] or Section 7.2(f)
[Liquidations, Mergers, Consolidations, Acquisitions], and (b) any Guarantor from its obligations
under the Guaranty Agreement if the ownership interests in such Guarantor are sold or otherwise
disposed of or transferred to persons other than Loan Parties or Subsidiaries of the Loan Parties
in a transaction permitted under Section 7.2(g) [Disposition of Assets or Subsidiaries] or
Section 7.2(f) [Liquidations, Mergers, Consolidations, Acquisitions].



9.10 No Reliance on Administrative Agent’s Customer Identification Program. Each Lender
acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or
assignees, may rely on the Administrative Agent to carry out such Lender’s, Affiliate’s,
participant’s or assignee’s customer identification program, or other obligations required or
imposed under or pursuant to the USA Patriot Act or the regulations thereunder, including the
regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP
Regulations”), or any other Anti-Terrorism Law, including any programs involving any of the
following items relating to or in connection with any of the Loan Parties, their Affiliates or
their agents, the Loan Documents or the transactions hereunder or contemplated hereby: (a) any
identity verification procedures, (b) any recordkeeping, (c) comparisons with government lists, (d)
customer notices or (e) other procedures required under the CIP Regulations or such other Laws.



10. MISCELLANEOUS.




10.1 Modifications, Amendments or Waivers. With the written consent of the Required
Lenders, the Administrative Agent, acting on behalf of all the Lenders, and the Borrower, on behalf
of the Loan Parties, may from time to time enter into written agreements amending or changing any
provision of this Agreement or any other Loan Document or the rights of the Lenders or the Loan
Parties hereunder or thereunder, or may grant written waivers or consents hereunder or thereunder.
Any such agreement, waiver or consent made with such written consent shall be effective to bind all
the Lenders and the Loan Parties; provided, that no such agreement, waiver or consent may
be made which will:




(a) Increase of Commitment.



Increase the amount of the Revolving Credit Commitment of any Lender hereunder without the
consent of such Lender;


 


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(b) Extension of Payment; Reduction of Principal, Interest or Fees; Modification of Terms
of Payment.



Whether or not any Loans are outstanding, extend the Expiration Date or the time for payment
of principal or interest of any Loan (excluding the due date of any mandatory prepayment of a
Loan), the Commitment Fee or any other fee payable to any Lender, or reduce the principal amount of
or the rate of interest borne by any Loan or reduce the Commitment Fee or any other fee payable to
any Lender, the Commitment Fee or any other fee payable to any Lender, without the consent of each
Lender directly affected thereby;




(c) Release of Collateral or Guarantor.



Except for sales of assets permitted by Section 7.2(g) [Disposition of Assets or
Subsidiaries], release all or substantially all of the Collateral or any Guarantor from its
Obligations under the Guaranty Agreement without the consent of all Complying Lenders; or




(d) Miscellaneous.



Amend Section 4.2 [Pro Rata Treatment of Lenders], Section 9.3 [Exculpatory
Provisions, Etc.] or Section 4.3 [Sharing of Payments by Lenders] or this
Section 10.1, alter any provision regarding the pro rata treatment of the Lenders or
requiring all Lenders to authorize the taking of any action or reduce any percentage specified in
the definition of Required Lenders, in each case without the consent of all of the Complying
Lenders;



provided that no agreement, waiver or consent which would modify the interests, rights or
obligations of the Administrative Agent or the Issuing Lender without the written consent of such
Administrative Agent or Issuing Lender, as applicable, and provided, further that,
if in connection with any proposed waiver, amendment or modification referred to in subsections (a)
through (d) above, the consent of the Required Lenders is obtained but the consent of one or more
of such other Lenders whose consent is required is not obtained (each a “Non-Consenting
Lender”), then the Borrower shall have the right to replace any such Non-Consenting Lender with
one or more replacement Lenders pursuant to Section 4.6(b) [Replacement of a Lender].



10.2 No Implied Waivers; Cumulative Remedies. No course of dealing and no delay or failure
of the Administrative Agent or any Lender in exercising any right, power, remedy or privilege under
this Agreement or any other Loan Document shall affect any other or future exercise thereof or
operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any further
exercise thereof or of any other right, power, remedy or privilege. The rights and remedies of the
Administrative Agent and the Lenders under this Agreement and any other Loan Documents are
cumulative and not exclusive of any rights or remedies which they would otherwise have.




10.3 Expenses; Indemnity; Damage Waiver.




(a) Costs and Expenses.



The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates (including the reasonable fees, charges and



 


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disbursements of counsel for the Administrative Agent), and shall pay all fees and time charges and disbursements
for attorneys who may be employees of the Administrative Agent, in connection with the syndication
of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Loan Documents or any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or
thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing
Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder, (iii) all out-of-pocket expenses incurred by the Administrative
Agent, any Lender or the Issuing Lender (including the fees, charges and disbursements of any
counsel for the Administrative Agent, any Lender or the Issuing Lender) in connection with the
enforcement or protection of its rights (A) in connection with this Agreement and the other Loan
Documents, including its rights under this Section, or (B) in connection with the Loans made or
Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of Credit, and (iv) all
reasonable out-of-pocket expenses of the Administrative Agent’s regular employees and agents
engaged periodically to perform audits of the Loan Parties’ books, records and business properties
provided that as long as there exists no Event of Default or Potential Default, the
Borrower shall not be obligated to pay more than $15,000.00 in any fiscal year for expenses
incurred under this clause (iv).




(b) Indemnification by the Borrower.



The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender
and the Issuing Lender, and each Related Party of any of the foregoing Persons (each such Person
being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses (including the fees, charges and
disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each
Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of
any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or
by the Borrower or any other Loan Party arising out of, in connection with, or as a result of
(i) the execution or delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the Issuing Lender to honor a demand for payment under a Letter
of Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit), (iii) breach of representations, warranties or covenants of the
Borrower under the Loan Documents, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, including any such items or losses
relating to or arising under
Environmental Laws or pertaining to environmental matters, whether based on contract, tort or
any other theory, whether brought by a third party or by the Borrower or any other Loan Party, and
regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses (A) are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or willful misconduct of



 


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 such
Indemnitee or (B) result from a claim brought by the Borrower or any other Loan Party against an
Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other
Loan Document, if the Borrower or such Loan Party has obtained a final and nonappealable judgment
in its favor on such claim as determined by a court of competent jurisdiction.




(c) Reimbursement by Lenders.



To the extent that the Borrower for any reason fails to indefeasibly pay any amount required
under Section 10.3(a) [Costs and Expenses] or Section 10.3(b) [Indemnification by
the Borrower] to be paid by it to the Administrative Agent (or any sub-agent thereof), the Issuing
Lender or any Related Party of any of the foregoing, each Lender severally agrees to pay to the
Administrative Agent (or any such sub-agent), the Issuing Lender or such Related Party, as the case
may be, such Lender’s Ratable Share (determined as of the time that the applicable unreimbursed
expense or indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the
Issuing Lender in its capacity as such, or against any Related Party of any of the foregoing acting
for the Administrative Agent (or any such sub-agent) or Issuing Lender in connection with such
capacity.




(d) Waiver of Consequential Damages, Etc.



To the fullest extent permitted by applicable Law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter
of Credit or the use of the proceeds thereof. No Indemnitee referred to in Section 10.3(b)
[Indemnification by the Borrower] shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.




(e) Payments.



All amounts due under this Section shall be payable not later than ten (10) days after demand
therefor.



10.4 Holidays. Whenever payment of a Loan to be made or taken hereunder shall be due on a
day which is not a Business Day such payment shall be due on the next Business Day (except as
provided in Section 3.2 [Interest Periods]) and such extension of time shall be included in
computing interest and fees, except that the Loans shall be due on the Business Day preceding the
Expiration Date if the Expiration Date is not a Business Day. Whenever any payment or action to be
made or taken hereunder (other than payment of the Loans) shall be stated to be due on a day which
is not a Business Day, such payment or action shall be made or



 


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taken on the next following Business
Day, and such extension of time shall not be included in computing interest or fees, if any, in
connection with such payment or action.




10.5 Notices; Effectiveness; Electronic Communication.




(a) Notices Generally.



Except in the case of notices and other communications expressly permitted to be given by
telephone (and except as provided in Section 10.5(b) [Electronic Communications]), all
notices and other communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or sent by telecopier (i)
if to a Lender, to it at its address set forth in its administrative questionnaire, or (ii) if to
any other Person, to it at its address set forth on Schedule 1.1(B).



Notices sent by hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier shall be deemed to
have been given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next Business Day
for the recipient). Notices delivered through electronic communications to the extent provided in
Section 10.5(b) [Electronic Communications], shall be effective as provided in such
Section.




(b) Electronic Communications.



Notices and other communications to the Lenders and the Issuing Lender hereunder may be
delivered or furnished by electronic communication (including e-mail and Internet or intranet
websites) pursuant to procedures approved by the Administrative Agent; provided that the
foregoing shall not apply to notices to any Lender or the Issuing Lender if such Lender or the
Issuing Lender, as applicable, has notified the Administrative Agent that it is incapable of
receiving notices under such Article by electronic communication. The Administrative Agent or the
Borrower may, in its discretion, agree to accept notices and other communications to it hereunder
by electronic communications pursuant to procedures approved by it; provided that approval
of such procedures may be limited to particular notices or communications. Unless the
Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail
address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended
recipient (such as by the “return receipt requested” function, as available, return e-mail or other
written acknowledgement); provided that if such notice or other communication is not sent
during the normal business hours of the recipient, such notice or communication shall be deemed to
have been sent at the opening of business on the next Business Day for the recipient, and
(ii) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the intended recipient at
its e-mail address as described in the foregoing clause (i) of notification that such notice or
communication is available and identifying the website address therefor.




(c) Change of Address, Etc.



Any party hereto may change its address or telecopier number for notices and other
communications hereunder by notice to the other parties hereto.


 


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10.6 Severability. The provisions of this Agreement are intended to be severable. If any
provision of this Agreement shall be held invalid or unenforceable in whole or in part in any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such
invalidity or unenforceability without in any manner affecting the validity or enforceability
thereof in any other jurisdiction or the remaining provisions hereof in any jurisdiction.



10.7 Duration; Survival. All representations and warranties of the Loan Parties contained
herein or made in connection herewith shall survive the execution and delivery of this Agreement,
the completion of the transactions hereunder and Payment In Full. All covenants and agreements of
the Borrower contained herein relating to the payment of principal, interest, premiums, additional
compensation or expenses and indemnification, including those set forth in the Notes,
Section 4 [Payments] and Section 10.3 [Expenses; Indemnity; Damage Waiver], shall
survive Payment in Full. All other covenants and agreements of the Loan Parties shall continue in
full force and effect from and after the date hereof and until Payment in Full.




10.8 Successors and Assigns.




(a) Successors and Assigns Generally.



The provisions of this Agreement shall be binding upon, and inure to the benefit of, the
parties hereto and their respective successors and assigns permitted hereby, except that neither
the Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative Agent and each Lender
and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an assignee in accordance with the provisions of Section 10.8(b) [Assignments by
Lenders], (ii) by way of participation in accordance with the provisions of Section 10.8(d)
[Participations], or (iii) by way of pledge or assignment of a security interest subject to the
restrictions of Section 10.8(f) [Certain Pledges; Successors and Assigns Generally] (and
any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby, Participants to the
extent provided in Section 10.8(d) [Participations] and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.




(b) Assignments by Lenders.



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




(i) Minimum Amounts.



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


 


- 82 -









 





(B) in any case not described in clause (i)(A) of this subsection (b), the aggregate amount of
the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable
Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning
Lender subject to each such assignment (determined as of the date the Assignment and Assumption
Agreement with respect to such assignment is delivered to the Administrative Agent or, if “Trade
Date” is specified in the Assignment and Assumption Agreement, as of the Trade Date) shall not be
less than $5,000,000.00, in the case of any assignment in respect of the Revolving Credit
Commitment of the assigning Lender, unless each of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent
not to be unreasonably withheld or delayed).



(ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loan or the Commitment assigned.



(iii) Required Consents. No consent shall be required for any assignment except for the
consent of the Administrative Agent (which shall not be unreasonably withheld or delayed) and:



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



(B) the consent of the Issuing Lender (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment that increases the obligation of the assignee to
participate in exposure under one or more Letters of Credit (whether or not then outstanding).



(iv) Assignment and Assumption Agreement. The parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption Agreement, together with a
processing and recordation fee of $3,500.00, and the assignee, if it is not a Lender, shall deliver
to the Administrative Agent an administrative questionnaire provided by the Administrative Agent.



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




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



Subject to acceptance and recording thereof by the Administrative Agent pursuant to
Section 10.8(c) [Register], from and after the effective date specified in each Assignment
and Assumption Agreement, the assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Assumption Agreement, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption Agreement, be released



 


- 83 -









 






from its obligations under this Agreement (and, in the case of an Assignment and Assumption Agreement
covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto) but shall continue to be entitled to the benefits of
Section 3.4 [LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not
Available], Section 4.8 [Increased Costs], and Section 10.3 [Expenses, Indemnity;
Damage Waiver] with respect to facts and circumstances occurring prior to the effective date of
such assignment. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection (b) shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and obligations in accordance
with Section 10.8(d) [Participations].




(c) Register.



The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall
maintain a record of the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time. Such
register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat
each Person whose name is in such register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. Such register shall be
available for inspection by the Borrower and any Lender, at any reasonable time and from time to
time upon reasonable prior notice.




(d) Participations.



Any Lender may at any time, without the consent of, or notice to, the Borrower or the
Administrative Agent, sell participations to any Person (other than a natural person or the
Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in
all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or
a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent and the Lenders, Issuing Lender shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement.



Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, modification or waiver with respect to
Section 10.1(a) [Increase of Commitment, Etc.], Section 10.1(b) [Extension of
Payment; Reduction of Principal, Interest or Fees; Modification of Terms of Payment], or
Section 10.1(c) [Release of Collateral or Guarantor]). Subject to Section 10.18(e)
[Limitations upon Participant Rights Successors and Assigns Generally], the Borrower agrees that
each Participant shall be entitled to the benefits of Section 3.4 [LIBOR Rate
Unascertainable; Illegality; Increased Costs; Deposits Not Available] and Section 4.8
[Increased Costs] to the same extent as if it were a



 


- 84 -









 






Lender and had acquired its interest by
assignment pursuant to Section 10.8(b) [Assignments by Lenders]. To the extent permitted
by Law, each Participant also shall be entitled to the benefits of Section 8.2(c) [Setoff]
as though it were a Lender; provided such Participant agrees to be subject to Section
4.3 [Sharing of Payments by Lenders] as though it were a Lender.




(e) Limitations upon Participant Rights Successors and Assigns Generally.



A Participant shall not be entitled to receive any greater payment under Section 4.8
[Increased Costs], Section 4.9 [Taxes] or Section 10.3 [ Expenses; Indemnity;
Damage Waiver] than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 4.9 [Taxes] unless the
Borrower is notified of the participation sold to such Participant and such Participant agrees, for
the benefit of the Borrower, to comply with Section 4.9(e) [Status of Lenders] as though it
were a Lender.




(f) Certain Pledges; Successors and Assigns Generally.



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




10.9 Confidentiality.




(a) General.



Each of the Administrative Agent, the Lenders and the Issuing Lender agrees to maintain the
confidentiality of the Information, except that Information may be disclosed (i) to its Affiliates
and to its and its Affiliates’ respective partners, directors, officers, employees, agents,
advisors and other representatives (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Information and instructed to keep such
Information confidential), (ii) to the extent requested by any regulatory authority purporting to
have jurisdiction over it (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (iii) to the extent required by applicable Laws or
regulations or by any subpoena or similar legal process, (iv) to any other party hereto, (v) in
connection with the exercise of any remedies hereunder or under
any other Loan Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement
containing provisions substantially the same as those of this Section, to (A) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (B) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (vii) with the consent of the
Borrower or (viii) to the extent such Information (A) becomes publicly available other than as a
result of a breach of this Section or (B) becomes available to the Administrative Agent, any
Lender, the Issuing Lender or any of their respective Affiliates on a nonconfidential



 


- 85 -









 






basis from a source other than the Borrower or the other Loan Parties. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.




(b) Sharing Information With Affiliates of the Lenders.



Each Loan Party acknowledges that from time to time financial advisory, investment banking and
other services may be offered or provided to the Borrower or one or more of its Affiliates (in
connection with this Agreement or otherwise) by any Lender or by one or more Subsidiaries or
Affiliates of such Lender and each of the Loan Parties hereby authorizes each Lender to share any
information delivered to such Lender by such Loan Party and its Subsidiaries pursuant to this
Agreement to any such Subsidiary or Affiliate subject to the provisions of Section 10.9(a)
[General].




10.10 Counterparts; Integration; Effectiveness.




(a) Counterparts; Integration; Effectiveness.



This Agreement may be executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which when taken together
shall constitute a single contract. This Agreement and the other Loan Documents, and any separate
letter agreements with respect to fees payable to the Administrative Agent, constitute the entire
contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof including any
prior confidentiality agreements and commitments. Except as provided in Section 6
[Conditions Of Lending And Issuance Of Letters Of Credit], this Agreement shall become effective
when it shall have been executed by the Administrative Agent and when the Administrative Agent
shall have received counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this
Agreement.



10.11 Choice of Law; Submission to Jurisdiction; Waiver of Venue; Service of Process;
Waiver of Jury Trial.




(a) Governing Law.



This Agreement shall be deemed to be a contract under the Laws of the Commonwealth of
Pennsylvania without regard to its conflict of laws principles. Each standby Letter of Credit
issued under this Agreement shall be subject either to the rules of the Uniform Customs and
Practice for Documentary Credits, as most recently published by the International Chamber of
Commerce (the “ICC”) at the time of issuance (“UCP”) or the rules of the International Standby
Practices (ICC Publication Number 590) (“ISP98”), as determined by the Issuing Lender, and each
trade Letter of Credit shall be subject to UCP, and in each case to the extent not inconsistent
therewith, the Laws of the Commonwealth of Pennsylvania without regard to is conflict of laws
principles.


 


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(b) SUBMISSION TO JURISDICTION.



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




(c) WAIVER OF VENUE.



THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT IN ANY COURT REFERRED TO IN THIS SECTION 10.11. EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND AGREES NOT
ASSERT ANY SUCH DEFENSE.




(d) SERVICE OF PROCESS.



EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR
NOTICES IN SECTION 10.5 [NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATION]. NOTHING IN
THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW.


 


- 87 -









 






(e) WAIVER OF JURY TRIAL.



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



10.12 USA Patriot Act Notice. Each Lender that is subject to the USA Patriot Act and the
Administrative Agent (for itself and not on behalf of any Lender) hereby notifies Loan Parties that
pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and record
information that identifies the Loan Parties, which information includes the name and address of
Loan Parties and other information that will allow such Lender or Administrative Agent, as
applicable, to identify the Loan Parties in accordance with the USA Patriot Act.


 


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



	 	 	 	 	 
	 	BORROWER:



GSI COMMERCE SOLUTIONS, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President, Finance 	 
	 	 	 	 
	 	GUARANTORS:



GSI COMMERCE, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President, Finance 	 
	 	 	 	 
	 	935 KOP ASSOCIATES, LLC
 	 
	 	By:  	GSI Commerce, Inc., its sole member and manager
 	 
	 	 	 
	 	By:  	                        /s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President, Finance 	 
	 	 	 	 
	 	1075 FIRST GLOBAL ASSOCIATES, LLC
 	 
	 	By:  	GSI Commerce, Inc., its sole member and manager
 	 
	 	 	 
	 	By:  	                     /s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President, Finance 	 
	 	 	 	 
	 	GSI LEGACY HOLDINGS, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: President 	 






 


 









 







	 	 	 	 	 
	 	ASFD, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: President 	 
	 	 	 	 
	 	GSI COMMERCE CALL CENTER, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: President 	 
	 	 	 	 
	 	GSI COMMERCE SOUTH, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President 	 
	 	 	 	 
	 	GSI EQUIPMENT, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: President 	 
	 	 	 	 
	 	7601 TRADE PORT DRIVE, LLC
 	 
	 	By:  	GSI Commerce Solutions, Inc., its sole member and manager
 	 
	 	 	 
	 	By:  	                 /s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President, Finance 	 
	 	 	 	 
	 	ONLINE DIRECT, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: President 	 







 


 









 







	 	 	 	 	 
	 	PROMOTIONS DISTRIBUTOR


SERVICES CORPORATION

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: President 	 
	 	 	 	 
	 	GSI INTERACTIVE, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President, Finance 	 
	 	 	 	 
	 	KOP PROMOTIONS, LLC

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: President 	 
	 	 	 	 
	 	SILVERLIGN GROUP, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President, Finance 	 
	 	 	 	 
	 	GSI MEDIA, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President, Finance 	 
	 	 	 	 
	 	RETAIL CONVERGENCE, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President 	 






 


 









 







	 	 	 	 	 
	 	SMARTBARGAINS, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President 	 
	 	 	 	 
	 	SMARTBARGAINS SECURITY CORPORATION

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President 	 
	 	 	 	 
	 	SB.com, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President 	 
	 	 	 	 
	 	RETAIL CONVERGENCE.com, LP
 	 
	 	By:  	SB.com, Inc., its general partner
 	 
	 	 	 
	 	By:  	     /s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President 	 
	 	 	 	 
	 	SHOPRUNNER, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President 	 
	 	 	 	 
	 	E-DIALOG, INC.

 	 
	 	By:  	/s/ Michael R. Conn
 	 
	 	 	Title: Executive Vice President 	 








 


 









 







	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, 

individually and as Administrative Agent

 	 
	 	By:  	/s/ John M. DiNapoli
 	 
	 	 	Name:  	John M. DiNapoli 	 
	 	 	Title:  	Sr. Vice President 	 






 


 









 







	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Andrew Richards
 	 
	 	 	Name:  	Andrew Richards 	 
	 	 	Title:  	Senior Vice President 	 







 


 









 







	 	 	 	 	 
	 	HSBC BANK USA, N.A.

 	 
	 	By:  	/s/ Susan A. Waters
 	 
	 	 	Name:  	Susan A. Waters 	 
	 	 	Title:  	VP, Senior Relationship Manager 	 






 


 









 







	 	 	 	 	 
	 	SOVEREIGN BANK

 	 
	 	By:  	/s/ Dennis Wasilewski
 	 
	 	 	Name:  	Dennis Wasilewski 	 
	 	 	Title:  	Senior Vice President 	 








 


 









 







	 	 	 	 	 
	 	TD BANK, N.A.

 	 
	 	By:  	/s/ Thomas M. McGrory
 	 
	 	 	Name:  	Thomas M. McGrory 	 
	 	 	Title:  	Vice President 	 








 


 









 







	 	 	 	 	 
	 	MORGAN STANLEY BANK

 	 
	 	By:  	/s/ Sherrese Clarke
 	 
	 	 	Name:  	Sherrese Clarke 	 
	 	 	Title:  	Authorized Signatory 	 








 


 









 







	 	 	 	 	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH

 	 
	 	By:  	/s/ Stefan Freckmann
 	 
	 	 	Name:  	Stefan Freckmann 	 
	 	 	Title:  	Vice President 	 
	 	 	 
	 	By:  	                                              /s/ Oliver Schwarz
 	 
	 	 	Name:  	Oliver Schwarz 	 
	 	 	Title:  	Director 	 







 


 









 







	 	 	 	 	 
	 	UBS LOAN FINANCE LLC

 	 
	 	By:  	/s/ Ifja R. Otsa
 	 
	 	 	Name:  	Ifja R. Otsa 	 
	 	 	Title:  	Associate Director, Banking Products
Services, US 	 
	 	 	 
	 	By:  	                                              /s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director, Banking Products
Services, US 	 









 


 









 







	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ James A. Knight
 	 
	 	 	Name:  	James A. Knight 	 
	 	 	Title:  	Vice President 	 







 


 











 




SCHEDULE 1.1(A)



PRICING GRID—

VARIABLE PRICING AND FEES BASED ON LEVERAGE RATIO

(PRICING EXPRESSED IN BASIS POINTS)




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Commitment	 	 	Base Rate	 	 	LIBOR Rate	 
	Level	 	Leverage Ratio	 	Fee	 	 	Spread	 	 	Spread	 
	I
	 	Positive, but less than or equal to 2.0 to 1.0	 	 	0.4	%	 	 	1.0	%	 	 	2.0	%
	II
	 	Greater than 2.0 to 1.0 but less than or equal to 2.5 to 1.0	 	 	0.4	%	 	 	1.25	%	 	 	2.25	%
	III
	 	Greater than 2.5 to 1.0 but less than or equal to 3.0 to 1.0	 	 	0.4	%	 	 	1.5	%	 	 	2.5	%
	IV
	 	Greater than 3.0 to 1.0 but less than or equal to 3.5 to 1.0	 	 	0.4	%	 	 	1.75	%	 	 	2.75	%
	V
	 	Greater than 3.5 to 1.0 or negative	 	 	0.4	%	 	 	2.25	%	 	 	3.25	%






For purposes of determining the Applicable Margin, the Applicable Commitment Fee Rate and the
Applicable Letter of Credit Fee Rate:



(a) The Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of
Credit Fee Rate shall be determined on the Closing Date based on the Leverage Ratio computed on
such date pursuant to a Compliance Certificate to be delivered on the Closing Date.



(b) The Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of
Credit Fee Rate shall be recomputed as of the end of each fiscal quarter ending after the Closing
Date based on the Leverage Ratio as of such quarter end. Any increase or decrease in the
Applicable Margin, the Applicable Commitment Fee Rate or the Applicable Letter of Credit Fee Rate
computed as of a quarter end shall be effective on the date on which the Compliance Certificate
evidencing such computation is due to be delivered under Section 7.3(c) [Compliance
Certificate], provided that any increase or decrease in the Applicable Margin
relating to any Borrowing Tranche in an Optional Currency shall become effective at the end of the
Interest Period therefor.


 


 









 





(c) If, as a result of any restatement of or other adjustment to the financial statements of
the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Leverage
Ratio as calculated by the Borrower as of any applicable date was inaccurate and (ii) a proper
calculation of the Leverage Ratio would have resulted in higher pricing for such period, the
Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent for
the account of the applicable Lenders, promptly on demand by the Administrative Agent (or, after
the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower
under the Bankruptcy Code of the United States, automatically and without further action by the
Administrative Agent, any Lender or the Issuing Lender), an amount equal to the excess of the
amount of interest and fees that should have been paid for such period over the amount of interest
and fees actually paid for such period. This paragraph shall not limit the rights of the
Administrative Agent, any Lender or the Issuing Lender, as the case may be, under Section
2.8 [Letter of Credit Subfacility] or Section 3.3 [Interest After Default] or
Section 8 [Default]. The Borrower’s obligations under this paragraph shall survive the
termination of the Commitments and the repayment of all other Obligations hereunder.



SCHEDULE 1.1(A) — 2





 


 









 







SCHEDULE 1.1(B)




COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES




Page 1 of 3




Part 1 — Commitments of Lenders and Addresses for Notices to Lenders




	 	 	 	 	 	 	 	 	 
	 	 	Amount of Commitment	 	 	 	 
	 	 	for Revolving Credit	 	 	 	 
	Lender	 	Loans	 	 	Ratable Share	 
	 
	 	 	 	 	 	 	 	 
	Name: PNC Bank, National Association 

Address: 1000 Westlakes Drive, Suite 200

Berwyn PA 19312

Attention: John DiNapoli 

Telephone: (610) 725-5760

Telecopy:   (610) 725-5799
	 	$	31,250,000.00	 	 	 	20.833333333	%
	 
	 	 	 	 	 	 	 	 
	Name: Bank of America, N.A. 

Address: 1600 John F. Kennedy Boulevard, 11th FL. 

Philadelphia, PA 19103

Attention: Andrew Richards III 

Telephone: (267) 675-0385

Telecopy:   (267) 675-0219
	 	$	31,250,000.00	 	 	 	20.833333333	%
	 
	 	 	 	 	 	 	 	 
	Name: Deutsche Bank AG New York Branch 

Address: 225 Franklin Street 24th Fl. Boston, MA 02110

Attention: David Dickinson 

Telephone: (617) 217-6381

Telecopy:   (617) 217-6300
	 	$	15,000,000.00	 	 	 	10.000000000	%







 


 









 





	 	 	 	 	 	 	 	 	 
	 	 	Amount of Commitment	 	 	 	 
	 	 	for Revolving Credit	 	 	 	 
	Lender	 	Loans	 	 	Ratable Share	 
	 
	 	 	 	 	 	 	 	 
	Name: JPMorgan Chase Bank, N.A. 

Address: 277 Park Ave., 23rd Fl. New York, NY 10172

Attention: James Knight 

Telephone: (212) 622-8486

Telecopy:   (646) 534-3081
	 	$	15,000,000.00	 	 	 	10.000000000	%
	 
	 	 	 	 	 	 	 	 
	Name: TD Bank, N.A. 

Address: 2005 Market Street, 2nd Floor 

Philadelphia, PA 19103

Attention: Thomas M. McGrory 

Telephone: (215) 282-3851

Telecopy:   (215) 557-6209
	 	$	15,000,000.00	 	 	 	10.000000000	%
	 
	 	 	 	 	 	 	 	 
	Name: HSBC Bank USA 

Address: 1515 Market Street, Suite 110

Philadelphia, PA 19102

Attention: Colleen Glackin

Telephone: (215) 575-9103

Telecopy:   (215) 563-1901
	 	$	15,000,000.00	 	 	 	10.000000000	%
	 
	 	 	 	 	 	 	 	 
	Name: Sovereign Bank 

Address: 1500 Market Street, 

Philadelphia, PA 19102

Attention: Dennis Wasilewski 

Telephone: (267) 256-2828

Telecopy:   (215) 568-5914
	 	$	15,000,000.00	 	 	 	10.000000000	%
	 
	 	 	 	 	 	 	 	 
	Name: UBS Loan Finance LLC 

Address: 677 Washington Blvd. 

Stamford, CT 06901

Attention: Jenny E. Milioti 

Telephone: (203) 719-5993

Telecopy:   (203) 719-3888
	 	$	7,500,000.00	 	 	 	5.000000000	%







 


 









 





	 	 	 	 	 	 	 	 	 
	 	 	Amount of Commitment	 	 	 	 
	 	 	for Revolving Credit	 	 	 	 
	Lender	 	Loans	 	 	Ratable Share	 
	 
	 	 	 	 	 	 	 	 
	Name: Morgan Stanley Bank 

Address: One Pierrepont Plaza 7th Fl. 

300 Camden Plaza West 

Brooklyn, NY 11201

Attention: Daniel Twenge 

Telephone: (718) 754-7285

Telecopy:   (718) 754-7250
	 	$	5,000,000.00	 	 	 	3.333333334	%
	 
	 	 	 	 	 	 	 	 
	Total
	 	$	150,000,000.00	 	 	 	100.000000000	%







 


 









 





SCHEDULE 1.1(B)




COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES




Page 1 of 5




Part 2 — Addresses for Notices to Borrower and Guarantors:




BORROWER:




Name: GSI Commerce Solutions, Inc.

Address:935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




GUARANTORS:




Name: GSI Commerce, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: 935 KOP Associations, LLC.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: 1075 First Global Associates, LLC

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: GSI Legacy Holdings, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730



 


 









 





Name: ASFD, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: GSI Commerce Call Center, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: GSI Commerce South, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: GSI Equipment, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: 7601 Trade Port Drive, LLC

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: Online Direct, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730



 


 









 





Name: Promotions Distributor Services Corporation

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: E-Dialog, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: GSI Interactive, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: KOP Promotions, LLC.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: Silverlign Group, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: GSI Media, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730



 


 









 





Name: Retail Convergence, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: SmartBargains, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: SmartBargains Security Corporation

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: SB.com, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: Retail Convergence.com, LP

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: ShopRunner, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: M3 Mobile, Incorporated

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730



 


 









 





Name: MBS Insight, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: VendorNet, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: GSI Marketing Services, Inc.

Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730




Name: Fetchback, Inc.




Address: 935 First Avenue

King of Prussia, PA 19406

Attention: Chief Financial Officer

Telephone: (610) 496-7000

Telecopy:   (610) 265-1730





 


 











 




SCHEDULE 1.1(P)




PERMITTED LIENS




GSI Commerce Solutions, Inc.




Pledge to PNC Bank, National Association of securities account # **, titled “PNC Bank,
National Association, Pledgee f/b/o GSI Commerce Solutions, Inc.” held at BlackRock Institutional
Management Corporation, and all assets in such account, pursuant to that certain Second Amended and
Restated Pledge Agreement between PNC Bank, National Association and GSI Commerce Solutions, Inc.,
dated December 22, 2006.



	 	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	Pennsylvania

	 	Department of State, Uniform Commercial Code Section
	 	1/12/2007

2007011201980

PNC Equipment Finance, LLC

Collateral: equipment lease (lessee/lessor)

	 
	 	 	 	 
	 

	 	 	 	4/11/2007

2007041107227

Marlin Leasing Corp.

Collateral: equipment lease

	 
	 	 	 	 
	 

	 	 	 	11/25/2009

2009112504104

Raymond Leasing Corporation

Collateral: specified equipment (lessee/ lessor)
	 
	 	 	 	 
	GSI Commerce, Inc.
	 	 	 	 
	 
	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	Delaware

	 	Secretary of State
	 	3/13/2009

90875127

First Western Bank and Trust

Collateral: specified equipment






 


 









 





	 	 	 	 	 
	GSI Equipment, Inc.
	 
	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	New York

	 	Secretary of State
	 	11/24/2009

200911246055446

IBM Credit LLC

Collateral: specified equipment (lessee/ lessor)
	 
	 	 	 	 
	GSI Commerce Call Center, Inc.
	 
	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	Florida

	 	Secured Transaction Registry
	 	10/27/2006

200603998303

GFC Leasing, a Division of Gordon Flesch Co., Inc.

Collateral: equipment lease (lessee/lessor)

	 
	 	 	 	 
	 

	 	 	 	10/27/2006

200603998281

GFC Leasing, a Division of Gordon Flesch Co., Inc.

Collateral: equipment lease (lessee/lessor)

	 
	 	 	 	 
	 

	 	 	 	2/9/2009

200909990849

Eau Claire County

Collateral: all assets
	 
	 	 	 	 
	GSI Commerce South, Inc. (formerly known as Accretive Commerce, Inc. and NewRoads, Inc.)
	 
	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	Delaware

	 	Secretary of State
	 	4/1/2005

50997271

Crown Credit Company

Collateral: equipment


8/21/2006

62904266

IBM Credit LLC

Collateral: equipment

12/13/2006

64413373

First Western Bank & Trust

Collateral: equipment







 


 









 





	 	 	 	 	 
	 

	 	 	 	10/10/2008

83438569

BB&T Equipment Finance Corporation

Collateral: specified equipment


11/13/2008

83804448

BB&T Equipment Finance Corporation

Collateral: leased equipment


11/20/2009

93730477

Ikon Financial Svcs

Collateral: leased equipment (lessee/ lessor)

4/1/2005

50997271

Crown Credit Company

Collateral: equipment
	 
	 	 	 	 
	 

	 	 	 	Amendment
(debtor name change to Accretive Commerce, Inc.)

9/1/2006
	 
	 	 	 	 
	 

	 	 	 	5/11/2005

51443051

BBH Financial Services Company

Collateral: equipment






 


 









 





	 	 	 	 	 
	 

	 	 	 	5/11/2005

51443176

BBH Financial Services Company

Collateral: equipment


6/15/2005

51834655

IOS Capital

Collateral: equipment lease (lessee/lessor)
	 
	 	 	 	 
	 

	 	 	 	10/17/2007

73908414

Ikon Financial Services

Collateral: equipment lease (lessee/lessor)






935 HQ Associates, LLC




Mortgage, Assignment of Leases and Rents and Security Agreement, in the amount of $13,000,000
by 935 HQ Associates, LLC in favor of CIBC Inc., dated June 9, 2004.



E-Dialog, Inc.




	 	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	Delaware

	 	Secretary of State
	 	7/22/2005

52268713

Vencore Solutions LLC

Collateral: Equipment Lease (Lessee/Lessor)

	 
	 	 	 	 
	 

	 	 	 	Assignment (Boston Financial & Equity Corporation)

7/27/2005
	 
	 	 	 	 
	 

	 	 	 	9/13/2005

52908326

Banc of America Leasing & Capital, LLC

Collateral: Equipment and specified rights, third party claims,
software, proceeds and books and records in connection therewith

	 
	 	 	 	 
	 

	 	 	 	9/13/2005

52908557

Banc of America Leasing & Capital, LLC
Collateral: Equipment
and specified rights, third party claims, software, proceeds and
books and records in connection therewith







 


 









 





	 	 	 	 	 
	 

	 	 	 	9/14/2005

52921295

General Electric Capital Corporation

Collateral: In lieu
for 4/21/2004 MA SOS filing (equipment)


10/4/2005

53116762

Banc of America Leasing & Capital, LLC

Collateral: Equipment and specified rights, third party claims, software, proceeds and books and records in connection therewith


10/4/2005

53116820

Banc of America Leasing & Capital, LLC
Collateral: Equipment and specified rights, third party claims, software, proceeds and books and records in connection therewith


11/14/2005

53594711

General Electric Capital Corporation

Collateral: Equipment Lease


11/22/2005

53613065

Banc of America Leasing & Capital, LLC

Collateral: Equipment and specified rights, third party claims, software, proceeds and books and records in connection therewith







 


 









 





	 	 	 	 	 
	 

	 	 	 	11/22/2005

53613230

Banc of America Leasing & Capital, LLC

Collateral: Equipment and specified rights, third party claims, software, proceeds and books and records in connection therewith


4/23/2007

71512952

De Lage Landen Financial Services Corporation

Collateral: Equipment


4/16/2008

81328630

US Express Leasing, Inc.

Collateral: leased equipment







	 	 	 	 	 
	Retail Convergence, Inc.
	 	 	 	 
	 
	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	Delaware

	 	Secretary of State
	 	9/17/2008

83140884

John Hardy USA Inc.

Collateral: rights in specified trademarks that have been consigned by Secured Party to Debtor

	 
	 	 	 	 
	Retail Convergence.com, LP
	 
	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	Delaware

	 	Secretary of State
	 	7/18/2008

82539433

De Lage Landen Financial Services, Inc.

Collateral: equipment lease (lessee/ lessor)






 


 









 





	 	 	 	 	 
	SmartBargains, Inc.	 	 
	 
	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	Delaware

	 	Secretary of State
	 	2/26/2007

70721935

Eugene Biro Borp. [sic]

Collateral: diamond jewelry (consigned merchandise)


7/18/2008

82539425

De Lage Landen Financial Services, Inc.

Collateral: lease guaranty (for Retail Convergence.com, LP; lessee/ lessor)

	 
	 	 	 	 
	MBS Insight, Inc.
	 
	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	New York

	 	Secretary of State
	 	4/2/2003

200304020732239

American Express Business Finance Corporation

Collateral: equipment lease (lessee/ lessor)


10/15/2009

200910150594554

De Lage Landen Financial Services, Inc.

Collateral: equipment lease (lessee/ lessor)
	 
	 	 	 	 






 


 









 





	 	 	 	 	 
	Fetchback, Inc.
	 
	 	 	 	 
	UCC Debtor
	 	 	 	 
	 
	 	 	 	 
	Delaware

	 	Secretary of State
	 	4/1/2008

20081130390

Bank of America Lease & Capital, LLC

Collateral: equipment lease (lessee/ lessor)


5/20/2008
	 

	 	 	 	20081732005

Dell Financial Services L.L.C.

Collateral: equipment lease (lessee/ lessor)


4/27/2010

200101468135

US Bancorp

Collateral: equipment lease (lessee/ lessor)


Security interest granted by Equipment Lease/Finance Agreement dated March 31, 2009 between Axis Capital Inc. and Fetchback, Inc.


Security interest granted by Equipment Lease Agreement No. 915077, dated May 9, 2007 between Axis Capital Inc. and Fetchback, Inc.


Security interest granted by Equipment Lease Agreement No. 915077, dated June 6, 2007 between Axis Capital Inc. and Fetchback, Inc.







 


 











 




SCHEDULE 2.8 TO CREDIT AGREEMENT




EXISTING LETTERS OF CREDIT




	 	 	 	 	 
	AMOUNT	 	LC#	 	EXPIRY DATE
	136,000.00
	 	**	 	1/22/2011
	129,862.60
	 	**	 	11/11/2010
	38,059.80
	 	**	 	2/25/2011
	106,708.50
	 	**	 	3/17/2011
	1,000,000.00
	 	**	 	6/8/2010
	91,000.00
	 	**	 	7/15/2010
	4,686,630.75
	 	**	 	5/20/2011
	250,000.00
	 	**	 	3/30/2011
	500,000.00
	 	**	 	3/30/2011
	250,000.00
	 	**	 	3/30/2011





 


 









 





SCHEDULE 5.1(a) TO CREDIT AGREEMENT


QUALIFICATIONS TO DO BUSINESS




1. GSI Commerce, Inc.: Pennsylvania



2. GSI Commerce Solutions, Inc.: Kentucky, California, Massachusetts, Georgia, and Virginia, New
Jersey, Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario,
Prince Edward Island, Quebec, Saskatchewan



3. GSI Equipment, Inc.: New Jersey.



4. ASFD, Inc.: Pennsylvania



5. GSI Commerce Call Center, Inc.: Wisconsin and Pennsylvania



6. GSI Commerce South, Inc.: California, Connecticut, Tennessee, Georgia, North Carolina, and
Virginia



7. Online Direct, Inc.: Georgia and Tennessee



8. E-Dialog, Inc.: Massachusetts, New York, California, Texas and Washington



9. GSI Interactive, Inc: Pennsylvania , New York, and California



10. KOP Promotions, LLC: Pennsylvania



11. GSI Media, Inc.: Pennsylvania



12. Retail Convergence, Inc.: Massachusetts and New York



13. SmartBargains, Inc.: Kentucky, Massachusetts, New York and Washington



14. SB.com, Inc.: Massachusetts



15. Retail Convergence.com, LP: Kentucky, Massachusetts and Washington



16. Silverlign Group, Inc.: Oregon and Washington



17. Fetchback, Inc.: Arizona


 


 









 





SCHEDULE 5.1(b)(i) TO CREDIT AGREEMENT




SUBSIDIARY EQUITY INTERESTS




	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Percentage of Equity	 
	 	 	 	 	 	 	 	 	Interest Owned	 
	 	 	Jurisdiction of	 	Type of Equity	 	Amount of	 	Directly or Indirectly	 
	Name	 	Organization	 	Interest	 	Equity Interest	 	by Parent	 
	 
	GSI Commerce Solutions, Inc.
	 	Pennsylvania	 	Common Stock	 	100 shares	 	 	100	%
	 
	GSI Equipment, Inc.
	 	New York	 	Common Stock	 	100 shares	 	 	100	%**
	 
	 	 	 	 	 	 	 	 	 	 
	7601 Trade Port Drive, LLC
	 	Kentucky	 	Limited Liability Company Interest	 	10 units	 	 	100	%**
	 
	 	 	 	 	 	 	 	 	 	 
	935 KOP Associates, LLC
	 	Pennsylvania	 	Limited Liability Company Interest	 	10 units	 	 	100	%
	 
	935 HQ Associates, LLC
	 	Delaware	 	Limited Liability Company Interest	 	10 units	 	 	100	%
	 
	1075 First Global Associates, LLC
	 	Pennsylvania	 	Limited Liability Company Interest	 	10 units	 	 	100	%
	 
	GSI Legacy Holdings, Inc.
	 	Pennsylvania	 	Common Stock	 	100 shares	 	 	100	%
	 
	ASFD, Inc.
	 	Delaware	 	Common Stock	 	100 shares	 	 	100	%
	 
	GSI Commerce Call Center, Inc.
	 	Florida	 	Common Stock	 	100 shares	 	 	100	%
	 
	GSI Luxembourg S.à.r.l
	 	Luxembourg	 	Limited Liability Company (Societe a Responsabilite Limitee) Interest	 	125 shares	 	 	100	%






 


 









 





	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Percentage of Equity	 
	 	 	 	 	 	 	 	 	Interest Owned	 
	 	 	Jurisdiction of	 	Type of Equity	 	Amount of	 	Directly or Indirectly	 
	Name	 	Organization	 	Interest	 	Equity Interest	 	by Parent	 
	 
	GSI Commerce Solutions International, S.L.
	 	Spain	 	Limited Liability Company (Sociedad de Responsabilidad Limitada) Interest	 	46,480 shares	 	 	100	%**
	 
	Zendor/GSI Commerce Limited
	 	United Kingdom	 	Limited Company Interest	 	1,010 shares comprising 750 A Shares, 250 B Shares, and 10 C Shares	 	 	100	%**
	 
	GSI Commerce South, Inc.
	 	Delaware	 	Common Stock	 	100 shares	 	 	100	%
	 
	Online Direct, Inc.
	 	Delaware	 	Common Stock	 	100 shares	 	 	100	%**
	 
	 	 	 	 	 	 	 	 	 	 
	Promotions Distributor Services Corporation
	 	California	 	Common Stock	 	1,000 shares	 	 	100	%**
	 
	E-Dialog, Inc.
	 	Delaware	 	Common Stock	 	100 shares	 	 	100	%
	 
	E-Dialog UK Limited
	 	England and Wales	 	Limited Company Interest	 	1 ordinary share	 	 	100 	%**
	 
	GSI Interactive, Inc.
	 	Delaware	 	Common Stock	 	100 shares	 	 	100 	%**
	 
	KOP Promotions, LLC
	 	Virginia	 	Limited Liability Company Interest	 	100 units	 	 	100 	%**
	 
	Silverlign Group, Inc.
	 	California	 	Common Stock	 	400,000 shares	 	 	100 	%**
	 
	GSI Commerce Solutions Canada Corp.
	 	New Brunswick, Canada	 	Common Shares	 	100 shares	 	 	100	%






 


 









 





	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Percentage of Equity	 
	 	 	 	 	 	 	 	 	Interest Owned	 
	 	 	Jurisdiction of	 	Type of Equity	 	Amount of	 	Directly or Indirectly	 
	Name	 	Organization	 	Interest	 	Equity Interest	 	by Parent	 
	 	 	 	 	 	 	 	 	 	 	 
	GSI Media, Inc. (f/k/a Peanut Butter Corporation)
	 	Delaware	 	Common Stock	 	100 shares	 	 	100 	%**
	 
	Retail Convergence, Inc.
	 	Delaware	 	Common Stock	 	964.4635 shares	 	 	100	%
	 
	 	 	 	Preferred Stock	 	35.5365 shares	 	 	 	 
	 
	SmartBargains, Inc.
	 	Delaware	 	Common Stock	 	100 shares	 	 	100 	%**
	 
	SmartBargains Security Corporation
	 	Massachusetts	 	Common Stock	 	1000 shares	 	 	100 	%**
	 
	SB.com, Inc.
	 	Delaware	 	Common Stock	 	1000 shares	 	 	100 	%**
	 
	Retail Convergence.com, LP
	 	Delaware	 	Partnership interests	 	99% limited partner interest and 1% general partner interest	 	 	100 	%**
	 
	ShopRunner, Inc.
	 	Pennsylvania	 	Common Stock	 	100 shares	 	 	100	%
	 
	M3 Mobile, Incorporated
	 	Pennsylvania	 	Common Stock	 	10,000 shares	 	 	100 	%**
	 
	MBS Insight, Inc.
	 	Delaware	 	Common Stock	 	1,000 shares	 	100% (through E-Dialog, Inc.)	 
	 
	VendorNet, Inc.
	 	Delaware	 	Common Stock	 	100 shares	 	 	100 	%**
	 
	GSI Marketing Solutions, Inc.
	 	Pennsylvania	 	Common Stock	 	100 shares	 	 	100	%
	 
	Fetchback, Inc.
	 	Delaware	 	Common Stock	 	100 shares	 	 	100 	%**
	 
	GSI Commerce Japan K.K.
	 	Japan	 	Common Stock	 	100 common shares	 	 	100	%
	 
	e-Dialog Singapore Private Ltd.
	 	Singapore	 	Limited Company Interest	 	100 shares	 	 	100 	%**





 


 









 





SCHEDULE 5.1(b)(ii)


BORROWER EQUITY INTERESTS




	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage of	 
	 	 	Type of Equity	 	 	Amount of	 	 	Equity Interest	 
	Name	 	Interest	 	 	Equity Interest	 	 	Owned by Parent	 
	 
	GSI Commerce Solutions, Inc.
	 	Common Stock	 	100 shares	 	 	100	%





 


 









 





SCHEDULE 5.1(b)(iii)


OTHER LOAN PARTY EQUITY INTERESTS




	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Jurisdiction of	 	 	Public	 	 	 	 
	Name	 	Organization	 	 	Company	 	 	Owner	 
	 
	GSI Commerce, Inc.
	 	Delaware	 	Yes	 	Publicly Held






 


 









 





SCHEDULE 5.1(b)(iv)


OUTSTANDING OPTIONS, WARRANTS, AND OTHER RIGHTS TO PURCHASE EQUITY 
INTERESTS OF LOAN PARTIES




1. There are outstanding options and warrants to acquire equity interests in GSI Commerce, Inc., as
disclosed from time to time in its filings with the Securities and Exchange Commission.


 


 









 





SCHEDULE 5.1(e)


LITIGATION




The Borrower, the other Loan Parties and the subsidiaries of the Borrower and the other Loan
Parties (collectively, the “Company”) are involved in various litigation incidental to their
business, including alleged contractual claims, claims relating to infringement of intellectual
property rights of third parties claims relating to the manner in which goods are sold through its
e-commerce platform, and claims relating to the Company’s collection of sales taxes in certain
states. The Company currently collects sales taxes for goods owned and sold by the Company and
shipped into certain states. As a result, the Company is subject from time to time to claims from
other states alleging that we failed to collect and remit sales taxes for sales and shipments of
products to customers in those states. Based on the merits of the cases and/or the amounts claimed,
the Company does not believe that any claims are likely to have a material adverse effect on its
business, financial position or results of operations. The Company may, however, incur substantial
expenses and devote substantial time to defend these claims whether or not such claims are
meritorious. In addition, litigation is inherently unpredictable. In the event of a determination
adverse to us, the Company may incur substantial monetary liability and may be required to
implement expensive changes in our business practices, enter into costly royalty or licensing
agreements, or begin to collect sales taxes in states in which it previously did not. An adverse
determination could have a material adverse effect on the Company’s business, financial position or
results of operations.



The Company discloses material legal proceedings in its quarterly and annual reports on Forms
10-Q and 10-K filed with the Securities and Exchange Commission


 


 









 





SCHEDULE 5.1(n)


ENVIRONMENTAL DISCLOSURES




None.


 


 









 





SCHEDULE 6.1(a)


OPINION OF COUNSEL




PNC Bank, National Association,

as Administrative Agent and

The Lenders

1600 Market Street

Philadelphia, PA 19103





			
		 	Re: $150,000,000 Amended and Restated Credit Agreement/GSI
Commerce Solutions, Inc.





Ladies and Gentlemen:



We have acted as counsel to GSI Commerce Solutions, Inc., a Pennsylvania corporation
(“Borrower”), GSI Commerce, Inc., a Delaware corporation (the “Parent”) and the subsidiaries of
Borrower listed on Schedule I hereto (together with the Parent, individually each a “Guarantor” and
collectively, the “Guarantors”), in connection with the execution and delivery of the Amended and
Restated Credit Agreement dated as of the date hereof (the “Credit Agreement”) among Borrower, the
Guarantors, the lenders party thereto (collectively, the “Lenders”) and PNC Bank, National
Association, as Administrative Agent (in such capacity, the “Administrative Agent”), and the
transactions contemplated thereby. This opinion is furnished to you pursuant to Section 6.1(a)(iv)
of the Credit Agreement.



Unless defined in this opinion, capitalized terms are used herein as defined in the Credit
Agreement. The term “UCC” as used herein means the Uniform Commercial Code as in effect in the
Commonwealth of Pennsylvania (sometimes referred to as the “State”). Uncapitalized terms that are
defined in Division 9 of the UCC are used herein as defined in the UCC. Borrower, GSI Legacy
Holdings, Inc. and ShopRunner, Inc. are each referred to herein individually as a “Pennsylvania
Corporate Loan Party” and collectively as “Pennsylvania Corporate Loan Parties.” The Parent, ASFD,
Inc., GSI Commerce South, Inc., Online Direct, Inc., GSI Interactive, Inc., e-Dialog, Inc., GSI
Media, Inc., Retail Convergence, Inc., SmartBargains, Inc., and SB.com, Inc. are each referred to
herein individually as a “Delaware Corporate Loan Party” and collectively as “Delaware Corporate
Loan Parties.” 935 KOP Associates, LLC and 1075 First Global Associates, LLC are each referred to
herein individually as a “Pennsylvania LLC Loan Party” and collectively as “Pennsylvania LLC Loan
Parties.” Retail Convergence.com, LP is referred to herein as a “Delaware Partnership Loan Party.”
Promotions Distributor Services Corporation and Silverlign Group, Inc. are each referred to
herein individually as a “California Corporate Loan Party” and collectively as “California Loan
Parties.”


 


 









 





In so acting, we have examined executed originals or counterparts of the following documents,
each dated the date hereof (the “Loan Documents”):




1. the Credit Agreement;




2. the Notes;



3. the Reaffirmation Agreement by the Loan Parties in favor of the Administrative Agent; and



4. the Amended and Restated Patent, Trademark and Copyright Collateral Assignment by the Loan
Parties in favor of the Administrative Agent.



We have reviewed such other documents and made such examinations of law as we have deemed
appropriate to give the opinions set forth below. We have relied, without independent
verification, on certificates or comparable documents of public officials and as to matters of fact
material to our opinions, also without independent verification, on representations and warranties
made in the Loan Documents and on certificates and other inquiries of officers, members and
representatives of Borrower and the Guarantors.



We have assumed the legal capacity and competence of natural persons, the genuineness of all
signatures (other than the signatures of Borrower and Guarantors), the authenticity of all
documents submitted to us as originals and the conformity to original documents of documents
submitted to us as certified, conformed, photostatic, electronic or facsimile copies. We have not
examined any records of any court, administrative tribunal or other similar entity in connection
with our opinion.



When an opinion or confirmation is given to our knowledge or to the best of our knowledge or
with reference to matters of which we are aware or which are known to us, or with another similar
qualification, the relevant knowledge or awareness is limited to the actual contemporaneous
knowledge or awareness of facts, without investigation, by the individual lawyers in this firm who
have participated in the specific transaction to which this opinion relates.



We have also assumed, without verification, (i) that the parties to the Loan Documents and the
other agreements, instruments and documents executed in connection therewith, other than Borrower
and Guarantors, have the power (including, without limitation, corporate or limited liability
company power where applicable) and authority to enter into and perform the Loan Documents and such
other agreements, instruments and documents, (ii) the due authorization, execution and delivery by
such parties other than Borrower and Guarantors, of each Loan Document and such other agreements,
instruments and documents and (iii) that the Loan Documents and such other agreements, instruments
and documents constitute legal, valid and binding obligations of each such party other than
Borrower and the Guarantors, enforceable against each such other party in accordance with their
respective terms.



We have also assumed, without verification for purposes of opinion 13 (i) with respect to each
of GSI Commerce Call Center, Inc., GSI Equipment, Inc., and SmartBargains Security Corporation that
such corporation has the power (including, without limitation, corporate power) and authority to
enter into and perform the Loan Documents and its due authorization, execution and delivery of each
Loan Document, and (ii) with respect to each of 7601 Trade Port Drive, LLC and KOP Promotions,
LLC, that such limited liability company has the power (including, without limitation, limited
liability power) and authority to enter into and perform the Loan Documents and its due
authorization, execution and delivery of each Loan Document.


 


 









 





Based upon the foregoing and subject to the assumptions, exceptions, limitations and
qualifications set forth herein, we are of the opinion that:



(a) The Pennsylvania Corporate Loan Parties are each a corporation, validly existing and,
based solely on the respective Subsistence Certificates issued by the Secretary of the Commonwealth
of Pennsylvania each dated February 18, 2010, presently subsisting under the laws of the
Commonwealth of Pennsylvania.



(b) The Pennsylvania LLC Loan Parties are each a limited liability company validly existing
and, based solely on the respective Subsistence Certificates issued by the Secretary of the
Commonwealth of Pennsylvania each dated February 18, 2010, subsisting as a limited liability
company under the laws of the Commonwealth of Pennsylvania.



(c) The Delaware Corporate Loan Parties are each a corporation validly existing and, based
solely on the respective Good Standing Certificates issued by the Delaware Secretary of State each
dated February 17, 2010 or February 18, 2010, as applicable, in good standing under the laws of the
State of Delaware.



(d) The Delaware Partnership Loan Party is a limited partnership validly existing and, based
solely on the respective Good Standing Certificate issued by the Delaware Secretary of State dated
February 17, 2010, in good standing under the laws of the State of Delaware



(e) The California Corporate Loan Parties are each a corporation validly existing and, based
solely on the respective Certificates of Status issued by the California Secretary of State each
dated February 17, 2010, in good standing under the laws of the State of California.



(f) Each of the Pennsylvania Corporate Loan Parties has the corporate power to enter into and
perform its obligations under the Loan Documents to which it is a party and to incur the
obligations provided therein, and has taken all corporate action necessary to authorize the
execution, delivery and performance of such Loan Documents.



(g) Each of the Pennsylvania LLC Loan Parties has the limited liability company power to enter
into and perform its obligations under the Loan Documents to which it is a party and to incur the
obligations provided therein, and has taken all limited liability company action necessary to
authorize the execution, delivery and performance of such Loan Documents.



(h) Each of the Delaware Corporate Loan Parties has the corporate power to enter into and
perform its obligations under the Loan Documents to which it is a party and to incur the
obligations provided therein, and has taken all corporate action necessary to authorize the
execution, delivery and performance of such Loan Documents.



(i) The Delaware Partnership Loan Party has the limited partnership power to enter into and
perform its obligations under the Loan Documents to which it is a party and to incur the
obligations provided therein, and has taken all limited partnership action necessary to authorize
the execution, delivery and performance of such Loan Documents.


 


 









 





(j) Each of the California Corporate Loan Parties has the corporate power to enter into and
perform its obligations under the Loan Documents to which it is a party and to incur the
obligations provided therein, and has taken all corporate action necessary to authorize the
execution, delivery and performance of the Loan Documents.



(k) (a) The execution and delivery by each of the Pennsylvania Corporate Loan Parties, the
Pennsylvania LLC Loan Parties, the Delaware Corporate Loan Parties, the Delaware Partnership Loan
Party and California Corporate Loan Parties of the respective Loan Documents to which it is a party
do not and the performance of the obligations thereunder will not (i) violate such Person’s
Certificate of Incorporation, Articles of Incorporation, Certificate of Formation, Bylaws,
Operating Agreement, Limited Liability Company Agreement and/or Limited Partnership Agreement, as
applicable or (ii) violate any present statute, rule or regulation promulgated by the United
States, the Commonwealth of Pennsylvania, the General Corporation Law of the State of Delaware, the
Delaware Revised Uniform Limited Partnership Act or the California General Corporation Law, which
in our experience is normally applicable both to entities that are not engaged in regulated
business activities and to transactions of the type contemplated by the Loan Documents.



(b) The execution and delivery by the Borrower and the Guarantors of the Loan Documents will
not breach or result in a default under those agreements listed on Schedule II hereto.



(l) Each Loan Document to which it is a party has been duly executed and delivered on behalf
of Borrower, each Pennsylvania Corporate Loan Party, Pennsylvania LLC Loan Party, Delaware
Corporate Loan Party, Delaware Partnership Loan Party and California Corporate Loan Party.



(m) Each Loan Document to which it is a party constitutes the legal, valid and binding
obligation of Borrower and each Guarantor enforceable in accordance with its respective terms.



(n) No consent or approval of, or notice to or filing with, any federal or state regulatory
authority of the United States or the Commonwealth of Pennsylvania is required by any of the
Pennsylvania Corporate Loan Parties or Pennsylvania LLC Loan Parties in connection with the
execution or delivery by the Pennsylvania Corporate Loan Parties or Pennsylvania LLC Loan Parties
of any of the Loan Documents or the payment of the Pennsylvania Corporate Loan Parties’ or
Pennsylvania LLC Loan Parties’ obligations under the Loan Documents.



(o) No consent or approval of, or notice to or filing with, any federal or state regulatory
authority of the United States or the State of Delaware under the General Corporation Law of the
State of Delaware is required by the Delaware Corporate Loan Parties in connection with the
execution or delivery by the Delaware Corporate Loan Parties of any of the Loan Documents or the
payment of the Delaware Corporate Loan Parties’ obligations under the Loan Documents. No consent or
approval of, or notice to or filing with, any federal or state regulatory authority of the United
States or the State of Delaware under the Delaware Revised Uniform Limited Partnership Act is
required by the Delaware Partnership Loan Party in connection with the execution or delivery by the
Delaware Partnership Loan Party of any of the Loan Documents or the payment of the Delaware
Partnership Loan Party’s obligations under the Loan Documents.


 


 









 





(p) No consent or approval of, or notice to or filing with, any federal or state regulatory
authority of the United States or the State of California under the California General Corporation
Law is required by the California Corporate Loan Parties in connection with the execution or
delivery by the California Corporate Loan Parties of any of the Loan Documents or the payment of
the California Corporate Loan Parties’ obligations under the Loan Documents.



(q) Assuming the representations and warranties in Section 5.1(g) of the Credit Agreement are
correct, the borrowing on the date hereof of the Loans under the Credit Agreement and the Notes,
and the application of the proceeds thereof as contemplated by the Credit Agreement and the other
Loan Documents, do not violate any of the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System.



We do not have knowledge of any action, suit or litigation proceeding against Borrower or any
Guarantor that is either pending or overtly threatened in writing with respect to the Loan
Documents other than as set forth in Schedule 5.1(e) to the Credit Agreement.



The foregoing opinions are subject to the following exceptions, limitations and
qualifications:



Our opinion is subject to the effect of applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, fraudulent transfer, marshalling or similar laws affecting
creditors’ rights and remedies generally; the rights of account debtors, claims and defenses of
account debtors and the terms of agreements with account debtors; general principles of equity,
including without limitation, concepts of materiality, reasonableness, good faith and fair dealing
(regardless of whether such enforceability is considered in a proceeding in equity or at law); and
limitations on enforceability of rights to indemnification or contribution by federal or state
securities laws or regulations or by public policy.



5. We draw to your attention the provisions of Section 911(b) of the Pennsylvania Crimes Code
(the “Crimes Code”), 18 Pa. C.S. § 911(b), in connection with the fact that the Loans bear floating
rates of interest. Section 911(b) of the Crimes Codes makes it unlawful to use or invest income
derived from a pattern of “racketeering activity” in the establishment or operation of any
enterprise. “Racketeering activity,” as defined in the Crimes Code, includes the collection of
money or other property in full or partial satisfaction of a debt which arose as the result of the
lending of money or other property at a rate of interest exceeding 25% per annum where not
otherwise authorized by law.



6. We express no opinion as to the application or requirements of federal or state securities
(except with respect to opinion 17), patent, trademark, copyright, antitrust and unfair
competition, pension or employee benefit, labor, environmental, health and safety or tax laws in
respect of the transactions contemplated by or referred to in the Loan Documents.


 


 









 





7. We express no opinion as to the validity or enforceability of any provision of the Loan
Documents which (i) permits the Lenders to increase the rate of interest or to collect a late
charge in the event of delinquency or default to the extent deemed to be penalties or forfeitures;
(ii) purports to grant the Administrative Agent or any Lender a power-of-attorney; (iii) purports
to entitle the Administrative Agent or any Lender to take possession of collateral in any manner
other than peaceably and by reason of the peaceable surrender of such possession by Borrower or the
Guarantors or by reason of appropriate judicial proceedings; (iv) purports to require that waivers
must be in writing to the extent that an oral agreement or implied agreement by trade practice or
course of conduct modifying provisions of the Loan Documents has been made; (v) purports to require
that certain waivers are irrevocable and cannot be subsequently waived, including by written
waiver; (vi) purports to be a waiver of the right to a jury trial, a waiver of any right to object
to jurisdiction or venue, a waiver of any right to claim damages or to service of process or a
waiver of any provisions of Divisions 8 or 9 of the UCC that may not be waived, or a waiver of any
other rights or benefits bestowed by operation of law or the waiver of which is limited by
applicable law; (vii) purports to be a waiver of the obligations of good faith, fair dealing,
diligence, mitigation of damages or commercial reasonableness; (viii) purports to exculpate any
party from its own negligent acts or limit any party from certain liabilities; (ix) purports to
require the payment of attorneys’ fees to the extent such fees exceed reasonable attorneys’ fees;
and (x) purports to authorize the Administrative Agent, any Lender or any Affiliate thereof to set
off and apply any deposits at any time held, and any other indebtedness at any time owing, by it to
or for the account of Borrower or any Guarantor or which purports to provide that any purchaser of
a participation from a Lender may exercise setoff or similar rights with respect to such
participation.



8. We express no opinion as to the enforceability of forum selection clauses upon the courts
in the forum selected.



We express no opinion as to the law of any jurisdiction other than (a) the federal law of the
United States, (b) the law of the Commonwealth of Pennsylvania, (c) the General Corporation Law of
the State of Delaware, (d) the Delaware Revised Uniform Limited Partnership Act, and (e) the
California General Corporation Law.



A copy of this opinion may be delivered by you to each financial institution that may become a
Lender under the Credit Agreement, and such persons may rely on this opinion to the same extent as,
but to no greater extent than, the addressee. This opinion may be relied upon by you and such
persons to whom you may deliver copies as provided in the preceding sentence only in connection
with the consummation of the transactions described herein and may not be used or relied upon by
you or any other person for any other purpose, without in each instance our prior written consent;
provided, however, that a copy of this opinion may be furnished to your regulators and attorneys
for the purposes of confirming its existence, and this opinion may be disclosed in connection with
any legal or regulatory proceeding relating to the subject matter hereof (but in each such case may
not be relied upon by any such parties).



This opinion is limited to the matters expressly stated herein. No implied opinion may be
inferred to extend this opinion beyond the matters expressly stated herein. We do not undertake to
advise you or anyone else of any changes in the opinions expressed herein resulting from changes in
law, changes in facts or any other matters that hereafter might occur or be brought to our
attention.



This opinion shall be interpreted in accordance with the Legal Opinion Principles issued by
the Committee on Legal Opinions of the American Bar Association’s Section of Business Law as
published in 53 Business Lawyer 831 (May 1998).



Very truly yours,



 


 









 





SCHEDULE 7.1(c)



INSURANCE REQUIREMENTS RELATING TO THE COLLATERAL




COVENANTS:



At the request of the Administrative Agent, the Loan Parties shall deliver to the Administrative
Agent and each of the Lenders (x) on the Closing Date and annually thereafter an original
certificate of insurance signed by the Loan Parties’ independent insurance broker describing and
certifying as to the existence of the insurance on the Collateral required to be maintained by this
Agreement and the other Loan Documents, together with a copy of the endorsement described in the
next sentence attached to such certificate and (y) from time to time a summary schedule indicating
all insurance then in force with respect to each of the Loan Parties. Such policies of insurance
shall contain special endorsements, in form and substance acceptable to the Administrative Agent,
which shall include the provisions set forth below. The applicable Loan Parties shall notify the
Administrative Agent promptly of any occurrence causing a material loss or decline in value of the
Collateral and the estimated (or actual, if available) amount of such loss or decline. Any monies
received by the Administrative Agent constituting insurance proceeds or condemnation proceeds may,
at the option of the Administrative Agent, (i) be applied by the Administrative Agent to the
payment of the Loans in such manner as the Administrative Agent may reasonably determine, or
(ii) be disbursed to the applicable Loan Parties on such terms as are deemed appropriate by the
Administrative Agent for the repair, restoration and/or replacement of property in respect of which
such proceeds were received.



ENDORSEMENT:



(i) specify the Administrative Agent as an additional insured and lender loss payee as its
interests may appear, with the understanding that any obligation imposed upon the insured
(including the liability to pay premiums) shall be the sole obligation of the applicable Loan
Parties and not that of the insured,



(ii) provide that the interest of the Lenders shall be insured regardless of any breach or
violation by the applicable Loan Parties of any warranties, declarations or conditions contained in
such policies or any action or inaction of the applicable Loan Parties or others insured under such
policies,



(iii) provide a waiver of any right of the insurers to set off or counterclaim or any other
deduction, whether by attachment or otherwise,



(iv) provide that any and all rights of subrogation which the insurers may have or acquire shall
be, at all times and in all respects, junior and subordinate to the prior payment in full of the
Indebtedness hereunder and that no insurer shall exercise or assert any right of subrogation until
such time as the Indebtedness hereunder has been paid in full and the Commitments have terminated,


 


 









 





(v) provide, except in the case of public liability insurance and workmen’s compensation insurance,
that all insurance proceeds for losses of less than $2,500,000.00 shall be adjusted with and
payable to the applicable Loan Parties and that all insurance proceeds for losses of $2,500,000.00
or more shall be adjusted with and payable to the Administrative Agent,



(vi) include effective waivers by the insurer of all claims for insurance premiums against the
Administrative Agent,



(vii) provide that no cancellation of such policies for any reason (including non-payment of
premium) nor any change therein shall be effective until at least thirty (30) days after receipt by
the Administrative Agent of written notice of such cancellation or change,



(viii) be primary without right of contribution of any other insurance `carried by or on behalf of
any additional insureds with respect to their respective interests in the Collateral, and



(ix) provide that inasmuch as the policy covers more than one insured, all terms, conditions,
insuring agreements and endorsements (except limits of liability) shall operate as if there were a
separate policy covering each insured.


 


 









 





SCHEDULE 7.2(a)



PERMITTED INDEBTEDNESS




1. GSI Commerce, Inc. 3% Convertible Notes due 2025 in the aggregate amount of $57,500,000, issued
pursuant to an Indenture from GSI Commerce, Inc. to JPMorgan Chase Bank, N.A., dated June 1, 2005.



2. GSI Commerce, Inc. 2.5% Convertible Notes due 2027 in the aggregate amount of $150,000,000,
issued pursuant to an Indenture from GSI Commerce, Inc. to The Bank of New York, dated July 2,
2007.



3. Master Lease Agreement in the amount of $14,500,000 between GSI Commerce Solutions, Inc. and PNC
Equipment Finance, LLC, dated December 22 2006, as amended, including without limitation, that
certain Schedule of Leased Equipment No. ** dated June 30, 2008 assigned to Commerce Commercial
Leasing, LLC and that certain assignment of a particpation interest to Sovereign Bankon January 10,
2008.



4. Capital Lease in the amount of $2,800,000 between Accretive Commerce and BB&T Equipment Finance,
dated May 18, 2007, and any amendments thereto.



5. Letter Agreement for $2,000,000 Committed Line of Credit and $1,000,000 Existing Standby Letter
of Credit between PNC Bank, National Association and GSI Commerce Solutions, Inc., dated January
11, 2008.



6. Mortgage, Assignment of Leases and Rents and Security Agreement, in the amount of $13,000,000 by
935 HQ Associates, LLC in favor of CIBC Inc., dated June 9, 2004.



7. Promissory Note in the amount of $13,000,000 by 935 HQ Associates, LLC in favor of CIBC Inc.,
dated June 9, 2004.



8. Lease Agreement (Lease #**) between Bank of America Leasing & Capital, LLC and e-Dialog, Inc.,
dated August 31, 2005.



9. Master Lease Agreement (Contract # **) between Fleet Business Credit, LLC and e-Dialog, Inc.,
dated August 31, 2005.



10. Master Lease Agreement Number ** between VenCore Solutions LLC and e-Dialog, Inc., dated
August 27, 2004.



11. Master Lease Agreement (Lease #**) between EMC Corporation and e-Dialog, Inc., dated March 28,
2007.



12. Master Lease Agreement between Hewlett Packard Financial Services Company and Retail Converge,
Inc. dated March 11, 2010.



13. Master Lease Agreement (Contract #**) between Delage Landen Financial Services Inc. and Retail
Convergence, Inc., dated July 16, 2008.


 


 









 





14. Master Lease Agreement between Raymond Storage Concepts, Inc. and GSI Commerce, Inc., dated
July 8, 2009.



15. Master Lease Agreement between Ikon Financial Services and GSI Commerce South, Inc., dated
August 18, 2009.



16. Wisconsin Community Development Block Grant Agreement between the Wisconsin Department of
Commerce, Eau Claire County and GSI Commerce Call Center, Inc., effective October 1, 2007 and
Promissory Note in the amount of $1,000,000 by GSI Commerce Call Center in favor of Wisconsin
Department of Commerce, Eau Claire County, dated July 10, 2007.



17. Master Lease Agreement (Contract #**) between De Lage Landen Financial Services Inc. and MBS
Insight, Inc.



18. Equipment Lease/Finance Agreement dated March 31, 2009 between Axis Capital Inc. and
Fetchback, Inc.



19. Equipment Lease Agreement No. **, dated May 9, 2007 between Axis Capital Inc. and Fetchback,
Inc.



20. Equipment Lease Agreement No. **, dated June 6, 2007 between Axis Capital Inc. and Fetchback,
Inc.



21. Installment Payment Agreement No. **, dated March 12, 2008, by and between Fetchback, Inc. and
Bank of America Leasing & Capital, LLC and its supplier, ADG Communications.



22. Master Lease Agreement #** dated 6/01/09 by and between Fetchback, Inc. and US Bancorp




23. Master Lease Agreement #** dated 6/22/09 by and between Fetchback, Inc and US Bancorp




24. Master Lease Agreement No. **, dated May 16, 2008 by and between Fetchback, Inc. and Dell
Financial Services, L.L.C. and the related Schedules setting forth equipment leased.



25. Equipment Lease Agreement No. **, dated February 5, 2008, by and between Fetchback, Inc. and
Fidelity Capital Partners, LLC



26. Equipment Lease Agreement dated February 5, 2008, by and between Fetchback, Inc. and Fidelity
Capital Partners, LLC


 


 









 





SCHEDULE 7.2(d)



EXISTING INVESTMENTS




1. ** shares of ** Stock of WebCollage, Inc.



2. ** shares of ** Stock of WebCollage, Inc.



3. ** shares of** Stock of Allurent, Inc.



4. **


5. **


 


 









 





SCHEDULE 8.1(j)



EXISTING 5% SHAREHOLDERS




1. Michael G. Rubin




2. Fred Alger Management, Inc. and affiliates




3. Wells Fargo & Co. and affiliates


 


 









 





EXHIBIT 1.1(a)



ASSIGNMENT AND ASSUMPTION AGREEMENT




Reference is made to the Amended and Restated Credit Agreement dated as of
 _____,
2010 (as amended, supplemented, restated or modified from time to time, the “Credit
Agreement”) among GSI COMMERCE SOLUTIONS, INC., a Delaware corporation (“Borrower”),
certain Guarantors from time to time parties thereto, Lenders now or hereafter party thereto, and
PNC BANK, NATIONAL ASSOCIATION, as Agent for Lenders (“Agent”). Unless otherwise defined
herein, terms defined in the Credit Agreement are used herein with the same meanings. The rules of
construction set forth in Section 1.2 of the Credit Agreement shall apply to this
Assignment and Assumption Agreement. The Standard Terms and Conditions set forth in Annex 1
attached hereto are hereby agreed to and incorporated herein by reference and made a part of this
Assignment as if set forth herein in full.



For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Agent as contemplated below, the interest in and to all of the
Assignor’s rights and obligations under the Credit Agreement and any other documents or instruments
delivered pursuant thereto that represents the amount and percentage interest identified below of
all of the Assignor’s outstanding rights and obligations under the credit facility identified below
(including, to the extent included in any such facilities, letters of credit and swingline loans)
(the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor
and, except as expressly provided in this Assignment, without representation or warranty by the
Assignor.



1. Assignor:



2. Assignee:



3. Borrower: GSI COMMERCE SOLUTIONS, INC.



4. Agent:
     PNC BANK, NATIONAL ASSOCIATION


 


 









 





5. Assigned Interest:



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate	 	 	 	 	 	 	 	 
	 	 	Amount of	 	 	 	 	 	 	Percentage	 
	 	 	Commitment/Loans	 	 	Amount of Revolving	 	 	Assigned of Revolving	 
	 	 	of such Facility for	 	 	Credit Commitment	 	 	Credit	 
	Facility Assigned	 	all Lenders	 	 	Assigned	 	 	Commitment	 
	Revolving Credit Commitment
	 	$	150,000,000.00	 	 	$	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 	 	 	 







6. Effective Date:



	 	 	 	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 
	 

	 	 	Name:	 	 	 	 
	 

	 	 	Title: 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 
	 

	 	 	Name:	 	 	 	 
	 

	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Notice Address:
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Telephone No.:	 	 	 	 
	 	 	Telecopier No.:	 	 	 	 
	 	 	Attn:	 	 	 	 






CONSENTED TO this
 _____ 



day of
 _____,
 _____ 





	 	 	 	 	 	 	 
	PNC BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 





 


 









 





ANNEX 1




STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT

AND ASSUMPTION AGREEMENT





1. Representations and Warranties.



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



1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and to
consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement,
(ii) it meets all requirements, if any, of an eligible assignee under the Credit Agreement, (iii)
from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement and,
to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it
has received a copy of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 5.1(f) and Section 7.3 thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and to purchase the Assigned Interest on the basis of which
it has made such analysis and decision, and (v) if Assignee is not incorporated or organized under
the laws of the United States of America or any State thereof, attached to the Assignment is any
documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without
reliance on the Agent, the Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Credit Documents are required to be
performed by it as a Lender.


 


 









 





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



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


 


 









 





EXHIBIT 1.1(G)


GUARANTOR JOINDER AND ASSUMPTION AGREEMENT




THIS GUARANTOR JOINDER AND ASSUMPTION AGREEMENT is made as of
 _____, 20____, by

 _____, a
 _____ 


[corporation/partnership/limited liability company] (the “New Guarantor”).



Background




Reference is made to (i) the Amended and Restated Credit Agreement, dated as of
 _____,
2010 as the same may be amended, restated, supplemented or modified from time to time (the
“Credit Agreement”), by and among GSI COMMERCE SOLUTIONS, INC., a Delaware corporation,
(the “Borrower”), each of the Guarantors now or hereafter party thereto, the Lenders now or
hereafter party thereto (the “Lenders”) and PNC BANK, NATIONAL ASSOCIATION, in its capacity
as administrative agent for itself and the Lenders (the “Administrative Agent”), (ii) the
Continuing Agreement of Guaranty and Suretyship, dated January 11, 2008, as the same has been and
may be amended, restated, supplemented or modified from time to time (the “Guaranty
Agreement”) of Guarantors given to the Administrative Agent, as administrative agent for the
Lenders, (iii) the Pledge Agreement, dated as of January 11, 2008, as the same has been and may be
amended, restated, supplemented or modified from time to time (the “Pledge Agreement”) made
by certain Loan Parties and certain of their Subsidiaries in favor of the Administrative Agent;
(iv) the Security Agreement, dated as of January 11, 2008, as the same has been and may be amended,
restated, supplemented or modified from time to time (the “Security Agreement”) made by the
Loan Parties in favor of the Administrative Agent; and (v) the other Loan Documents referred to in
the Credit Agreement, as the same may be amended, restated, supplemented or modified from time to
time (collectively, the “Loan Documents”).



Agreement





Capitalized terms defined in the Credit Agreement are used herein as defined therein.



New Guarantor hereby becomes a Guarantor under the terms of the Credit Agreement and in
consideration of the value of the synergistic and other benefits received by New Guarantor as a
result of being or becoming affiliated with the Borrower and the Guarantors, New Guarantor hereby
agrees that effective as of the date hereof it hereby is, and shall be deemed to be, and assumes
the obligations of, a “Loan Party” and a “Guarantor”, jointly and severally, under the Credit
Agreement, a “Guarantor,” jointly and severally with the existing Guarantors under the Guaranty
Agreement, a “Pledgor”, jointly and severally, under the Pledge Agreement, a “Debtor” jointly and
severally, under the Security Agreement, and a Loan Party or Guarantor, as the case may be, under
each of the other Loan Documents to which the Lenders or Guarantors are a party; and, New Guarantor
hereby agrees that from the date hereof and so long as any Loan, Letter of Credit or any Revolving
Credit Commitment of the Administrative Agent or any Lender shall remain outstanding and until the
payment in full of the Loans and the Notes, the expiration of all Letters of Credit, and the
performance of all other obligations of the Lenders under the Loan Documents, New Guarantor shall
perform, comply with, and be subject to and bound by each of the terms and provisions of the Credit
Agreement, the Guaranty Agreement, the Pledge Agreement, the Security Agreement and each of the
other Loan Documents, jointly and severally, with the existing parties thereto. Without limiting
the generality of the foregoing, New Guarantor hereby represents and warrants that (i) each of the
representations and warranties set forth in Section 5 of the Credit Agreement applicable to a Loan
Party are true and correct as to New Guarantor on and as of the date hereof and (ii) New Guarantor
has heretofore received a true and correct copy of the Credit Agreement, Guaranty Agreement, Pledge
Agreement, Security Agreement and each of the other Loan Documents (including any modifications
thereof or supplements or waivers thereto) in effect on the date hereof.


 


 









 





New Guarantor hereby makes, affirms, and ratifies in favor of the Administrative Agent and the
Lenders, the Credit Agreement, Guaranty Agreement, the Pledge Agreement, the Security Agreement and
each of the other Loan Documents given by the Guarantors to the Administrative Agent and the
Lenders.



New Guarantor is simultaneously delivering to the Administrative Agent and the Lenders the
documents, together with this Guarantor Joinder and Assumption Agreement, required under Sections
6.1 and 7.2(i).



In furtherance of the foregoing, New Guarantor shall execute and deliver or cause to be
executed and delivered at any time and from time to time such further instruments and documents and
do or cause to be done such further acts as may be reasonably necessary in the reasonable opinion
of the Administrative Agent or the Lenders to carry out more effectively the provisions and
purposes of this Guarantor Joinder and Assumption Agreement and the other Loan Documents.



New Guarantor acknowledges and agrees that a telecopy transmission to the Administrative Agent
and the Lenders of signature pages hereof purporting to be signed on behalf of New Guarantor shall
constitute effective and binding execution and delivery hereof by New Guarantor.



In connection with its becoming a Debtor under the Security Agreement, New Guarantor grants to
and creates in favor of the Administrative Agent a first priority security interest under the Code
in and to the Collateral to secure the due and punctual payment and performance of the Debt in
full. Such security interest shall be subject to the terms and conditions set forth in the
Security Agreement. (Capitalized terms used in this paragraph and not otherwise defined have the
meanings given to them in the Security Agreement).



In connection with becoming a Pledgor under the Pledge Agreement, New Guarantor grants to the
Administrative Agent a first priority security interest in New Guarantor’s now existing and
hereafter acquired and/or arising right, title and interest in, to and under the Pledged Collateral
owned by New Guarantor, whether now or hereafter existing and wherever located. Such security
interest shall be subject to the terms and conditions set forth in the Pledge Agreement.
(Capitalized terms used in this paragraph and not otherwise defined have the meanings given to them
in the Pledge Agreement).


 


 









 





NEW GUARANTOR SHALL CAUSE BORROWER TO PROVIDE SUCH ADDITIONAL DOCUMENTS AS REQUIRED BY SECTION
7.2(i) OF THE CREDIT AGREEMENT.



IN WITNESS WHEREOF, and intending to be legally bound hereby, the New Guarantor has duly
executed this Guarantor Joinder and Assumption Agreement and delivered the same to the
Administrative Agent for the benefit of the Lenders, as of the date and year first above written
with the intention that this Guarantor Joinder and Assumption Agreement constitute a sealed
instrument.



	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 	 	 	(SEAL)
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 	 
	 

	 	 
	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 
	 

	 	 
	 	 	 	 	 	 	 






Acknowledged and accepted:



PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent




	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 







 


 











 




EXHIBIT 1.1(N)(1)




FORM OF

REVOLVING CREDIT NOTE




			
	 	 	 
	$                    
	 	Pittsburgh, Pennsylvania

Original date: January 11, 2008

Amended and restated:                     , 2010






FOR VALUE RECEIVED, the undersigned, GSI COMMERCE SOLUTIONS, INC., a Pennsylvania corporation
(herein called the “Borrower”), hereby promises to pay to the order of
                     (the “Lender”) the lesser of (1) the principal sum of                     
U.S. Dollars (U.S. $_____), or (2) the aggregate unpaid principal balance of all
Revolving Credit Loans made by the Lender to the Borrower pursuant to Section 2 of the Amended and
Restated Credit Agreement dated as of                     , 2010, between the Borrower, PNC Bank, National
Association as Administrative Agent, Guarantors (as therein defined) and the Lenders party thereto,
including the Lender (the “Credit Agreement”), whichever is less, payable on the Expiration
Date. All capitalized terms used herein shall, unless otherwise defined herein, have the same
meanings given to such terms in the Credit Agreement.



The Borrower shall pay interest on the unpaid principal balance hereof from time to time
outstanding from the date hereof at the rate or rates per annum specified by the Borrower pursuant
to Section 3.1(a) of, or as otherwise provided in, the Credit Agreement.



Upon the occurrence and during the continuation of an Event of Default, at the direction of
the Required Lenders, the Borrower shall pay interest on the entire principal amount of the then
outstanding Revolving Credit Loans evidenced by this Revolving Credit Note at a rate in accordance
with Section 3.3 of, or as otherwise provided in, the Credit Agreement. Such interest rate will
accrue before and after any judgment has been entered.



Borrower shall pay interest on and principal of this Revolving Credit Note at the times set
forth in the Credit Agreement.



If any payment or action to be made or taken hereunder shall be stated to be or become due on
a day which is not a Business Day, such payment or action shall be made or taken on the next
following Business Day and such extension of time shall be included in computing interest or fees,
if any, in connection with such payment or action.



Subject to the provisions of the Credit Agreement, payments of both principal and interest
shall be made without setoff, counterclaim or other deduction of any nature at the office of the
Administrative Agent located at 249 Fifth Avenue, Pittsburgh, Pennsylvania 15222, in lawful money
of the United States of America in immediately available funds, for further distribution to the
Lender as set forth in the Credit Agreement.



This Note is one of the Revolving Credit Notes referred to in, and is entitled to the benefits
of, the Credit Agreement and other Loan Documents, including the representations, warranties,
covenants, conditions, security interests or Liens contained or granted therein to the
Administrative Agent for the benefit of the Lenders. The Credit Agreement among other things
contains provisions for acceleration of the maturity hereof upon the happening of certain
stated events and also for prepayment, in certain circumstances, on account of principal hereof
prior to maturity upon the terms and conditions therein specified.


 


 









 





Except as otherwise provided in the Credit Agreement, the Borrower waives presentment, demand,
notice, protest and all other demands and notices in connection with the delivery, acceptance,
performance, default or enforcement of this Note and the Credit Agreement.



This Note shall bind the Borrower and its successors and assigns, and the benefits hereof
shall inure to the benefit of the Lender and its successors and assigns. All references herein to
the “Borrower” and the “Lender” shall be deemed to apply to the Borrower and the Lender,
respectively, and their respective successors and assigns.



This Note and any other documents delivered in connection herewith and the rights and
obligations of the parties hereto and thereto shall for all purposes be governed by and construed
and enforced in accordance with the internal laws of the Commonwealth of Pennsylvania without
giving effect to its conflicts of law principles.



This Note amends and restates in its entirety, but does not constitute a novation of the
indebtedness evidenced by, that certain Revolving Credit Note dated as of January 11, 2008 of
Borrower to the order of Lender.


 


 









 





IN WITNESS WHEREOF, the undersigned has executed this Note by its duly authorized officers
with the intention that it constitute a sealed instrument.



	 	 	 
	ATTEST:

	 	GSI COMMERCE SOLUTIONS, INC.
	 
	 	 
	 

	 	By:
	 


	 	 
 
	Title:

	 	Title:

	 
	 	 
	[Seal]
	 	 





 


 









 





EXHIBIT 1.1(N)(2)


SWING LOAN NOTE




			
	 	 	 
	$15,000,000
	 	Pittsburgh, Pennsylvania

Original date: January 11, 2008

Amended and restated:                     , 2010






FOR VALUE RECEIVED, the undersigned, GSI COMMERCE SOLUTIONS, INC., a Pennsylvania corporation (the
“Borrower”), hereby promises to pay to the order of PNC BANK, NATIONAL ASSOCIATION (the
“Bank”), as provided below the lesser of the principal sum of Fifteen Million U.S. Dollars
(U.S. $15,000,000.00) or the aggregate unpaid principal amount of all “Swing Loans” in the
currencies in which such Swing Loans were made by the Bank to the Borrower pursuant to the Amended
and Restated Credit Agreement dated as of                     , 2010, as amended from time to time, among the
Borrower, the Guarantors, the Lenders, and PNC Bank, National Association, as Administrative Agent
(the “Credit Agreement”), together with interest on the unpaid principal balance hereof
from time to time outstanding from the date hereof at the rate provided in Section 3.1(b) of the
Credit Agreement.



After request for payment of any principal hereof or interest hereon shall have been made by
the Bank, or upon the occurrence and continuance of an Event of Default at the direction of the
Required Lenders, such amount shall thereafter bear interest at a rate per annum as set forth in
Section 3.3 of the Credit Agreement. Such interest will accrue before and after any judgment has
been entered with respect to this Swing Loan Note.




Interest hereon will be payable at the times specified in the Credit Agreement.



Subject to the provisions of the Credit Agreement, payments of both principal and interest
shall be made without setoff, counterclaim or other deduction of any nature at the office of the
Administrative Agent located at 249 Fifth Avenue, Pittsburgh, Pennsylvania 15222, in lawful money
of the United States of America in immediately available funds.



This Note is the Swing Loan Note referred to in, is subject to the provisions of, and is
entitled to the benefits of, the Credit Agreement and the other Loan Documents, including the
representations, warranties, covenants conditions and Liens contained or granted therein. This
Swing Loan Note shall be payable ON DEMAND and regardless of whether or not an Event of Default has
occurred and is continuing.



The Borrower waives presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance, default or enforcement of this Swing Loan
Note and the Credit Agreement.



All capitalized terms used herein shall, unless otherwise defined herein, have the same
meanings assigned to such terms in the Credit Agreement.


 


 









 





This Swing Loan Note shall bind the Borrower and its successors and assigns, and the benefits
hereof shall inure to the benefit of the Administrative Agent, the Bank and their successors and
assigns; provided, that any assignment of this Swing Loan Note by the Borrower or the Bank
shall be subject to the provisions of Section 10.8 of the Credit Agreement. All
references herein to the “Borrower,” the “Administrative Agent” and the “Bank” shall be deemed
to apply to the Borrower, the Administrative Agent and the Bank, respectively, and their respective
successors and assigns.



This Swing Loan Note and any other documents delivered in connection herewith and the rights
and obligations of the parties hereto and thereto shall for all purposes be governed by and
construed and enforced in accordance with the substantive law of the Commonwealth of Pennsylvania
without giving effect to the principles of conflict of laws.



This Swing Loan Note amends and restates in its entirety, but does not constitute a novation
of the indebtedness evidenced by, that certain Swing Loan Note dated January 11, 2008 of Borrower
to the order of Bank.



IN WITNESS WHEREOF, the undersigned has executed this Note by its duly authorized officers
with the intention that it constitute a sealed instrument.



	 	 	 	 	 
	 	GSI COMMERCE SOLUTIONS, INC.

 	 
	 	By:  	 
 	[Seal] 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



 


 









 





EXHIBIT 2.1




LENDER JOINDER AND ASSUMPTION AGREEMENT




THIS LENDER JOINDER AND ASSUMPTION AGREEMENT is made as of                     , 20
_____, by
                    , a                      (the “New Lender”).



Background




Reference is made to (i) the Amended and Restated Credit Agreement, dated as of                     ,
2010, as the same may be amended, restated, supplemented or modified from time to time (the
“Credit Agreement”), by and among GSI COMMERCE SOLUTIONS, INC., a Pennsylvania corporation,
(the “Borrower”), each of the Guarantors now or hereafter party thereto, the Lenders now or
hereafter party thereto (the “Lenders”) and PNC BANK, NATIONAL ASSOCIATION, in its capacity
as administrative agent for itself and the Lenders (the “Administrative Agent”), and (ii)
the other Loan Documents referred to in the Credit Agreement, as the same may be amended, restated,
supplemented or modified from time to time (collectively, the “Loan Documents”).



Agreement




Capitalized terms defined in the Credit Agreement are used herein as defined therein.



New Lender hereby becomes a Lender under the terms of the Credit Agreement pursuant to the
operation of Section 2.1(b) thereof. On the effective date of the increase in the
aggregate Revolving Credit Commitments pursuant to such Section 2.1(b) as set forth in
written notice from the Administrative Agent to the New Lender, New Lender shall remit to the
Administrative Agent in immediately available funds an amount equal to the sum of (i) the New
Lender’s Ratable Share of then outstanding Revolving Credit Loans plus (ii) the New
Lender’s Ratable Share of any new Revolving Credit Loan being advanced to the Borrower on such
effective date. From and after the effective date of the increase in aggregate Revolving Credit
Commitments (a) the New Lender shall be responsible to the Administrative Agent for funding its
Ratable Share of any Revolving Credit Loan under Section 2 of the Credit Agreement, whether
in response to a Loan Request, a demand by PNC Bank for repayment of the Swing Loan, repayment of
any Reimbursement Obligation or otherwise; (b) the New Lender shall have a participation interest
equal to its Ratable Share of any Letters of Credit then outstanding or thereafter issued and any
Letter of Credit Borrowing then outstanding or thereafter incurred; and (c) the New Lender shall
have all of the rights and duties of a Lender under the Credit Agreement and the other Loan
Documents.



The New Lender hereby represents and warrants that it has heretofore received a true and
correct copy of the Credit Agreement, an original Revolving Credit Note in the amount of its
Revolving Credit Commitment and a true and correct copy of each of the other Loan Documents
(including any modifications thereof or supplements or waivers thereto) in effect on the date
hereof.


 


 









 





In furtherance of the foregoing, New Lender shall execute and deliver or cause to be executed
and delivered at any time and from time to time such further instruments and documents and do or
cause to be done such further acts as may be reasonably necessary in the reasonable opinion of the
Administrative Agent to carry out more effectively the provisions and purposes of this Lender
Joinder and Assumption Agreement and the other Loan Documents.



New Lender acknowledges and agrees that a telecopy transmission to the Administrative Agent of
signature pages hereof purporting to be signed on behalf of New Lender shall constitute effective
and binding execution and delivery hereof by New Lender.



IN WITNESS WHEREOF, and intending to be legally bound hereby, the New Lender has duly executed
this Lender Joinder and Assumption Agreement and delivered the same to the Administrative Agent, as
of the date and year first above written with the intention that this Lender Joinder and Assumption
Agreement constitute a sealed instrument.



	 	 	 	 	 
	ATTEST:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 


	 

	 	By:	 	(SEAL) 
	 

	 	 


	 	 
	Name:

	 	Name:
	 	 
	
 


	 	
 



	Title:

	 	Title:



	
 


	 	
 









	 	 	 	 	 
	Acknowledged and accepted:



PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 



 


 









 





Commitments of New Lender and Address for Notices




	 	 	 	 	 	 	 	 	 
	 	 	Amount of Revolving Credit	 	 	 	 
	New Lender	 	Commitment	 	 	Ratable Share	 
	 
	 	 	 	 	 	 	 	 
	Name:
	 	$	 	 	 	 	 	%
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Telephone:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Telecopy:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 





 


 









 





EXHIBIT 2.4




LOAN REQUEST FORM




	 	 	 
	TO:

	 	PNC Bank, National Association, as Administrative Agent
	 

	 	Telephone No.: (412) 762-7196 
	 

	 	Telecopier No.: (412) 705-2006 
	 

	 	Attention: Andrea Gibb
	 
	 	 
	FROM:

	 	GSI Commerce Solutions, Inc.
	 
	 	 
	RE:

	 	Amended and Restated Credit Agreement (as it may have been or may
hereafter be amended from time to time, the “Agreement”) dated as of
                    , 2010 by and between GSI Commerce Solutions, Inc.,
(the “Borrower”), the Guarantors now or hereafter party thereto, PNC
Bank, National Association, as administrative agent for the Lenders,
(the “Administrative Agent”) and the Lenders now or hereafter party
thereto.







	 	A.	 	Pursuant to Section 2.4 of the Agreement, the undersigned hereby makes the
following Revolving Credit Loan Request:






	 	1.	 	Aggregate Principal Amounts of the Loans Requested Hereunder






	 	(a)	 	Amount to be advanced in US Dollars	 	$                  
	 
	 	(b)	 	in British Pounds Sterling	 	                    
	 
	 	(c)	 	in Euros	 	                    
	 
	 	(d)	 	in Canadian Dollars	 	                    
	 
	 	(e)	 	in Japanese Yen	 	                    
	 
	 	(f)	 	in Danish Kroner	 	                    
	 
	 	(g)	 	in Swedish Krona	 	                    
	 
	 	(h)	 	in Swiss Franc	 	                    
	 
	 	(i)	 	in Norwegian Krone	 	                    
	 
	 	(j)	 	in Australian Dollars	 	                    
	 
	 	(k)	 	in another currency (requires all Lenders’ consent)	 	                    
	 
	 2.	Aggregate Amount of Loans Subject to LIBOR Rate Option	 	                    
	 
	 	(a)	 	subject to One Month Interest Period
(only option available for Optional Currency Advance)	 	                    
	 
	 	(b)	 	subject to Two Month Interest Period	 	                    
	 
	 	(c)	 	subject to Three Month Interest Period	 	                    
	 
	 	(d)	 	subject to Six Month Interest Period	 	                    




 


 









 






	 	3.	 	Aggregate Amount of Loans Subject to Base Rate Option (US Dollar advances only)	 	                    
	 
	 	4.	 	Proposed Borrowing Date:	 	                    






	 	B.	 	Pursuant to Section 3.1 of the Agreement, the undersigned requests that the
following Loans presently outstanding be converted to the Interest Rate Option
indicated below on the dates indicated below, which dates, the undersigned represents
and warrants, as to any Loans previously earning interest at the LIBOR Rate Option, are
the last days of the then current Interest Periods.





1. Convert $                     earning interest at the Base Rate Option to the LIBOR Rate
Option with an Interest Period of                      Month(s), commencing                     .




(Repeat as necessary)



( ) Convert                      (identify currency) earning interest at the LIBOR Rate Option
with a current Interest Period ending                      to the LIBOR Rate Option with an Interest
Period of                      Month(s) (only one month periods available for Optional Currency), commencing
on such date.




(Repeat as necessary)



( ) Convert $                     earning interest at the LIBOR Rate Option with a current
Interest Period ending                      to the Base Rate Option on such date.




	 	C.	 	As of the date hereof and the date of making of the Loans: the representations
and warranties contained in Section 5 of the Agreement are and will be true (except
representations and warranties that expressly relate solely to an earlier date or time,
which representations and warranties were true on and as of the specific date referred
to therein) in all material respects; the Borrower has performed and complied with all
covenants of the Agreement; all conditions for the making of the Loans under the
Agreement have been satisfied; no Event of Default or Potential Default has occurred
and is continuing or shall exist; and the making of the Loans shall not contravene any
Law applicable to the Borrower.





Capitalized terms used but not defined herein shall have the meanings given to them in the
Agreement.


 


 









 






The undersigned certifies to the accuracy of the foregoing.



	 	 	 	 	 
	 	GSI COMMERCE SOLUTIONS, INC.

 	 
	Date:                      	By:  	 	 
	 	 	Its: 	 
	 	 	 	 	 




 


 











 




EXHIBIT 2.4(B)




SWING LOAN REQUEST FORM




	 	 	 
	TO:

	 	PNC Bank, National Association, as Administrative Agent
	 

	 	Telephone No.: (412) 762-7196
	 

	 	Telecopier No.: (412) 705-2006
	 

	 	Attention: Andrea Gibb
	 
	 	 
	FROM:

	 	GSI Commerce Solutions, Inc.
	 
	 	 
	RE:

	 	Amended and Restated Credit Agreement (as it may have been or may
hereafter be amended from time to time, the “Agreement”) dated as of
_____, 2010 by and between GSI Commerce Solutions, Inc.,
(the “Borrower”), the Guarantors now or hereafter party thereto, PNC
Bank, National Association, as administrative agent for the Lenders,
(the “Administrative Agent”) and the Lenders now or hereafter party
thereto.






A. Pursuant to Section 2.4(c) of the Agreement, the undersigned hereby makes the following
Swing Loan Request:



	 	 	 	 	 
	1.

	 	Aggregate Principal Amount of the Loans
Requested Hereunder
	 	$___________


	 
	 	 	 	 
	2.

	 	Proposed Borrowing Date:
	 	____________







B. As of the date hereof and the date of making of the Loans: the representations and
warranties contained in Section 5 of the Agreement are and will be true (except representations and
warranties that expressly relate solely to an earlier date or time, which representations and
warranties were true on and as of the specific date referred to therein) in all material respects;
the Borrower has performed and complied with all covenants of the Agreement; all conditions for the
making of the Loans under the Agreement have been satisfied; no Event of Default or Potential
Default has occurred and is continuing or shall exist; and the making of the Loans shall not
contravene any Law applicable to the Borrower.



Capitalized terms used but not defined herein shall have the meanings given to them in the
Agreement.



The undersigned certifies to the accuracy of the foregoing.



	 	 	 	 	 	 	 
	 	 	 	 	GSI COMMERCE SOLUTIONS, INC.
	 
	 	 	 	 	 	 
	Date:

	 	 	 	By:  	 	 
	 

	 	 
	 	 	 
	 

	 	 	 	 	Its:	 
	 

	 	 	 	 	 	 





 


 









 





EXHIBIT 7.3(C)


FORM OF QUARTERLY COMPLIANCE CERTIFICATE




In accordance with the provisions of Section 7.3(c) of the Amended and Restated Credit
Agreement dated as of ___________, 2010, as amended, restated and otherwise modified through the
date hereof (the “Credit Agreement”) by and among GSI Commerce Solutions, Inc. (the
“Borrower”), GSI Commerce, Inc. (the “Company”), PNC Bank, National Association, as
Administrative Agent (the “Agent”), and the other parties thereto from time to time, I, ___________, the ___________ and authorized officer of the Company, on behalf of all
of the Loan Parties (as defined in the Credit Agreement), do hereby certify to the Agent and
Lenders (as defined in the Credit Agreement) as follows:



(a) I am familiar with, and have reviewed, the provision of the Credit Agreement and the other
Loan Documents, and have done such investigations as is necessary to support the statements made in
this certificate.



(b) The representations and warranties made by the Loan Parties in the Credit Agreement and
other Loan Documents are true with the same effect as though such representations and warranties
are made on and as of this date (except representations and warranties which expressly relate
solely to an earlier date or time, which remain true as of such date or time) and the Loan Parties
have performed and complied with all covenants and conditions set forth in the Credit Agreement and
other Loan Documents;




(c) No Event of Default or Potential Default has occurred or now exists; and



(d) The Loan Parties, on a consolidated basis, are in compliance with the financial covenants
set forth in Section 7.2 of the Credit Agreement as more fully set forth below and on Annex
1 hereto:



	 	 	 	 	 
	 	 	Actual	 	Required
	 
	 	 	 	 
	Prepayment of Indebtedness

	 	___________
	 	not more than $___________
1
	 
	 	 	 	 
	Leverage Ratio
	 	 	 	 
	 
	 	 	 	 
	ratio of consolidated Indebtedness
divided by

	 	___________
	 	 
	 
	 	 	 	 
	Consolidated Adjusted EBITDA

	 	___________
	 	 
	 
	 	 	 	 
	Leverage Ratio

	 	___________
	 	not more than 4.00 to 1.00





 





	 	 	 
	1	 	Refer to Section 7.2(n) of Credit Agreement to
determine applicable maximum amount.



 


 









 





	 	 	 	 	 
	Fixed Coverage Ratio
	 	 	 	 
	ratio of Consolidated EBITDA divided by

	 	___________
	 	 
	Fixed Charges

	 	___________
	 	 
	 
	 	 	 	 
	Fixed Charge Coverage Ratio

	 	___________
	 	not less than 2.5 to 1.00
	 
	 	 	 	 
	Cash and Cash Equivalents

	 	___________
	 	not less than $30,000,000.002
	 
	 	 	 	 
	Senior Leverage Ratio
	 	 	 	 
	ratio of secured consolidated Indebtedness divided by

	 	___________
	 	 
	Consolidated Adjusted EBITDA

	 	___________
	 	 
	 
	 	 	 	 
	Senior Leverage Ratio

	 	___________
	 	not to exceed 2.5 to 1.00
	 
	 	 	 	 
	Foreign Subsidiaries
	 	 	 	 
	The Company’s Foreign Subsidiaries
	 	 	 	 
	own consolidated assets equal to

	 	___________
	 	 
	The Company’s consolidated total assets

	 	___________
	 	 
	Percentage owned by Foreign
Subsidiaries

	 	___________
	 	not more than ___________%3
	 
	 	 	 	 
	Maximum repayment, redemptions, dividends, distribution, and subordinate indebtedness maturing
prior to April 1, 2013.
	 
	 	 	 	 
	Aggregate repayments, redemptions
and repurchase of Indebtedness
(other than the first $57,500,000 of 3%
Convertible Notes due 2025)

	 	___________
	 	 
	 
	 	 	 	 
	plus
	 	 	 	 
	 
	 	 	 	 
	Aggregate Subordinated Indebtedness
due prior to April 1, 2013

	 	___________
	 	 
	 
	 	 	 	 
	plus
	 	 	 	 





 





	 	 	 
	2	 	of which not less than $25,000,000.00 shall be owned by
the Parent, the Borrower and/or the Domestic Subsidiaries and maintained in the
United States. Refer to Section 7.2(q) of Credit Agreement.
	 
	3	 	refer to Section 7.2(r) for applicable percentage.



 


 









 





	 	 	 	 	 
	Aggregate dividends, distributions and
stock repurchases (other than payable
to another Loan Party)

	 	___________
	 	 
	 
	 	 	 	 
	Total

	 	___________
	 	not to exceed $50,000,000.00






Attached hereto as Annex 1 are calculations supporting the figures reported above.



Any capitalized terms which are used in this Certificate and which are not defined herein, but
which are defined in the above-described Credit Agreement, shall have the meanings given to those
terms in the Credit Agreement.




IN WITNESS WHEREOF, I have executed this Certificate the ___________ day of ___________.



	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	___________
of GSI Commerce, Inc. on
behalf of all of the Loan Parties