Document:

Exhibit
10.2

STANDARD
NON-ISO GRANT

EV3 INC.

2005 INCENTIVE STOCK PLAN

NON-INCENTIVE STOCK OPTION

OPTION CERTIFICATE

ev3 Inc., a Delaware
corporation, in accordance with the ev3 Inc. 2005 Incentive Stock Plan, hereby
grants an Option to
                      ,
who shall be referred to as “Optionee”, to purchase from the Company                       
shares of Stock at an Option Price per share equal to $                      ,
which grant shall be subject to all of the terms and conditions set forth in
this Option Certificate and in the Plan. 
This grant has been made as of                       ,
200[  ], which shall be referred to as the “Grant Date”.  This Option is not intended to satisfy the
requirements of § 422 of the Code and thus shall be a Non-ISO as that term
is defined in the Plan.

 

	
  

  	
   

  	
  EV3 INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  

 

 

TERMS AND CONDITIONS

§ 1.          Plan.  This Option grant is subject to all the terms
and conditions set forth in the Plan and this Option Certificate, and all the
terms in this Option Certificate which begin with a capital letter are either
defined in this Option Certificate or in the Plan.  If a determination is made that any term or
condition set forth in this Option Certificate is inconsistent with the Plan,
the Plan shall control.  A copy of the
Plan has been made available to Optionee.

§ 2.          Vesting and Option
Expiration.

(a)           General Rule.  Subject to § 2(b) and § 2(c),
Optionee’s right under this Option Certificate to exercise this Option shall
vest with respect to: (1) 25% of the shares of Stock which may be purchased
under this Option Certificate on [Date], such date being approximately twelve
(12) months from the Grant Date, provided he or she remains continuously
employed by the Company or continues to provide services to the Company through
such date, and (2) with respect to the remaining 75% of such shares of Stock,
in equal amounts on the [Xth] day of each of the next thirty-six (36) months
thereafter, beginning on [Date] provided he or she remains continuously
employed by the Company or continues to provide services to the Company through
each such date.

(b)           Option Expiration
Rules.

(1)           Non-Vested Shares.  If Optionee’s employment or service with the
Company terminates for any reason whatsoever, including death, Disability or
retirement, while there are any non-vested shares of Stock subject to this
Option under § 2(a), this Option immediately upon such termination of
employment or service shall expire and shall have no further force or effect
and be null and void with respect to such non-vested shares of Stock.

(2)           Vested Shares.  Optionee’s right to exercise all or any part
of this Option which has vested under § 2(a) shall expire no later than
the tenth anniversary of the Grant Date. 
However, if Optionee’s employment or service relationship with the
Company terminates before the tenth anniversary of the Grant Date, Optionee’s
right to exercise this Option which has vested under § 2(a) shall expire
and shall have no further force or effect and shall be null and void:

(A)          on
the date his or her employment or service relationship terminates if his or her
employment or service relationship terminates for Cause,

(B)           on
the first anniversary of the date his or her employment or service relationship
terminates if his or her employment or service relationship terminates as a
result of his or her death or Disability, or

 2
 

(C)           at
the end of the 90 day period which starts on the date his or her employment or
service relationship terminates if his or her employment or service
relationship terminates other than (1) for Cause or (2) as a result of his or
her death or Disability.

(c)           Special
Rules.

(1)           Sale of Business
Unit.  The Committee, in connection
with the sale of any Subsidiary, Affiliate, division or other business unit of
the Company, may, within the Committee’s sole discretion, take any or all of
the following actions if this Option or the rights under this Option will be
adversely affected by such transaction:

(A)          accelerate the time
Optionee’s right to exercise this Option will vest under § 2(a),

(B)           provide for vesting
after such sale or other disposition, or

(C)           extend the time at
which this Option will expire (but not beyond the tenth anniversary of the
Grant Date).

(2)           Change in Control.  If there is a Change in Control of the
Company, this Option shall be subject to the provisions of § 14 of the
Plan with respect to such Change in Control.

(3)           Affiliates.  For purposes of this Option Certificate, any
reference to the Company shall include any Affiliate, Parent or Subsidiary of
the Company, and a transfer of employment or service relationship between the
Company and any Affiliate, Parent or Subsidiary of the Company or between any
Affiliate, Parent or Subsidiary of the Company shall not be treated as a
termination of employment or service relationship under the Plan or this Option
Certificate.

(4)           Termination of
Employment or Service Relationship. 
For purposes of this Option Certificate, if the Optionee’s employment
with the Company terminates while there are any non-vested shares of Stock
subject to this Option under § 2(a) but the Optionee at such time then
becomes an

 3
 

independent consultant to the Company, the Optionee’s
right under this Option Certificate to exercise this Option shall continue to
vest so long as the Optionee continues to provide services to the Company in
accordance with § 2(a).  For
purposes of this Option Certificate, except as otherwise provided below, if the
Optionee’s employment with the Company terminates but the Optionee at such time
then becomes an independent consultant to the Company, the termination of the
Optionee’s employment shall not result in the expiration of the Option under § 2(b)(1)
or 2(b)(2).  Notwithstanding the
foregoing, the Optionee’s right to exercise all or any part of this Option
which has vested under § 2(a) shall expire no later than the tenth
anniversary of the Grant Date.

(5)           Fractional Shares.  Optionee’s right to exercise this Option
shall not include a right to exercise this Option to purchase a fractional
share of Stock.  If Optionee exercises
this Option on any date when this Option includes a fractional share of Stock,
his or her exercise right shall be rounded down to the nearest whole share of
Stock and the fractional share shall be carried forward until that fractional
share together with any other fractional shares can be combined to equal a
whole share of Stock or this Option expires.

(a)           Definitions.

(1)           Cause.  For purposes of this Certificate, “Cause”
shall exist if (A) Optionee has engaged in conduct that in the judgment of
the Committee constitutes gross negligence, misconduct or gross neglect in the
performance of Optionee’s duties and responsibilities, including conduct
resulting or intending to result directly or indirectly in gain or personal
enrichment for Optionee at the Company’s expense, (B) Optionee has been
convicted of or has pled guilty to a felony for fraud, embezzlement or theft,
(C) Optionee has engaged in a breach of any policy of the Company for
which termination of employment or service is a permissible consequence or
Optionee has not immediately cured any performance or other issues raised by
Optionee’s supervisor, (D) Optionee had knowledge of (and did not disclose
to the Company in writing) any condition that could potentially impair Optionee’s
ability to perform the functions of his or her job or service relationship

 4
 

fully, completely and successfully, or
(E) Optionee has engaged in any conduct that would constitute “cause”
under the terms of his or her employment or consulting agreement, if any.

(2)           Disability.  For purposes of this Certificate, “Disability”
means any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months and which renders Optionee unable to engage in any
substantial gainful activity. The Committee shall determine whether Optionee
has a Disability.  If Optionee disputes
such determination, the issue shall be submitted to a competent licensed
physician appointed by the Board, and the physician’s determination as to
whether Optionee has a Disability shall be binding on the Company and on
Optionee.

§ 3.          Method of Exercise of
Option.  Optionee may exercise this
Option in whole or in part (to the extent this Option is otherwise exercisable
under § 2 with respect to vested shares of Stock) only in accordance with
the rules and procedures established from time to time by the Company for the
exercise of an Option.  The Option Price
shall be paid at exercise either in cash, by check acceptable to the Company or
through any cashless exercise procedure which is implemented by a broker
unrelated to the Company through a sale of Stock in the open market and which
is acceptable to the Committee, or in any combination of these forms of
payment.

§ 4.          Delivery and Other
Laws.  The Company shall deliver
appropriate and proper evidence of ownership of any Stock purchased pursuant to
the exercise of this Option as soon as practicable after such exercise to the
extent such delivery is then permissible under applicable law or rule or
regulation, and such delivery shall discharge the Company of all of its duties
and responsibilities with respect to this Option.

§ 5.          Non-transferable.  No rights granted under this Option shall be transferable
by Optionee other than (a) by will or by the laws of descent and distribution
or (b) to a “family member” as provided in § 10.2 of the Plan.  The person or persons, if any, to whom this
Option is transferred shall be treated after Optionee’s death the same as
Optionee under this Option Certificate.

§ 6.          No Right to Continue
Service.  Neither the Plan, this
Option, nor any related material shall give Optionee the right to continue in
employment by or perform services to the Company or shall adversely affect the
right of the Company to terminate Optionee’s employment or service relationship
with the Company with or without Cause at any time.

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§ 7.          Stockholder Status.  Optionee shall have no rights as a
stockholder with respect to any shares of Stock under this Option until such
shares have been duly issued and delivered to Optionee, and no adjustment shall
be made for dividends of any kind or description whatsoever or for
distributions of rights of any kind or description whatsoever respecting such
Stock except as expressly set forth in the Plan.

§ 8.          Governing Law.  The Plan and this Option Certificate shall be
governed by the laws of the State of Delaware.

§ 9.          Binding Effect.  This Option Certificate shall be binding upon
the Company and Optionee and their respective heirs, executors, administrators
and successors.

§ 10.        Tax Withholding.  This Option has been granted subject to the
condition that Optionee consents to whatever action the Committee directs to
satisfy the minimum statutory federal and state withholding requirements, if
any, which the Company determines are applicable upon the exercise of this
Option.

§ 11.        References.  Any references to sections (§) in this Option
Certificate shall be to sections (§) of this Option Certificate unless otherwise
expressly stated as part of such reference.

§ 12.        Availability of Copy of
Plan and Plan Prospectus.  A copy of
the plan document and prospectus for the ev3 Inc. Amended and Restated 2005
Incentive Stock Plan are available on the Company’s intranet portal under the “Employee
Tools” section, which can be accessed by opening your web browser from your
Company desktop or laptop computer.  If
you like to receive a paper copy of the plan document and/or plan prospectus,
please contact:

Kevin M. Klemz

Vice President, Secretary and Chief Legal Officer

ev3 Inc.
9600 54th Avenue
North
Plymouth, Minnesota 55442
(763)
398-7000

KKlemz@ev3.net

§ 13.        Availability of Annual
Report to Stockholders and Other SEC Filings.  A copy of the Company’s most recent annual report
to stockholders and other filings made with the Securities and Exchange
Commission are available on the Company’s internet website, www.ev3.net, under
the Investors Relations—SEC Filings section. 
If you like to receive a paper copy of the Company’s most recent annual
report

 6
 

to stockholders and other
filings made by the Company with the Securities and Exchange Commission, please
contact Kevin M. Klemz at the address, telephone number or e-mail address
above.

 7Exhibit
10.1
  EXECUTION COPY
     
  
  SECOND LIEN CREDIT AGREEMENT
  dated as of January 22,
2007,
  among
  TRUE TEMPER CORPORATION,
  TRUE TEMPER SPORTS, INC.,

as Borrower
  THE LENDERS PARTY HERETO
  and
  CREDIT SUISSE,

as Administrative Agent
  

  CREDIT SUISSE SECURITIES
(USA) LLC,

as Sole Bookrunner and Sole Lead Arranger
     
  

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
  DEFINITIONS

  	
  1

  
	
  SECTION 1.01.

  	
  Defined Terms

  	
  1

  
	
  SECTION 1.02.

  	
  Terms Generally

  	
  25

  
	
  SECTION 1.03.

  	
  Classification of Loans and Borrowings

  	
  26

  
	
  SECTION 1.04.

  	
  Pro Forma Calculations

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  THE CREDITS

  	
  26

  
	
  SECTION 2.01.

  	
  Commitments

  	
  26

  
	
  SECTION 2.02.

  	
  Loans

  	
  26

  
	
  SECTION 2.03.

  	
  Borrowing Procedure

  	
  27

  
	
  SECTION 2.04.

  	
  Repayment of Loans; Evidence of Debt

  	
  28

  
	
  SECTION 2.05.

  	
  Fees

  	
  29

  
	
  SECTION 2.06.

  	
  Interest on Loans

  	
  29

  
	
  SECTION 2.07.

  	
  Default Interest

  	
  29

  
	
  SECTION 2.08.

  	
  Alternate Rate of Interest

  	
  29

  
	
  SECTION 2.09.

  	
  Termination and Reduction of Commitments

  	
  30

  
	
  SECTION 2.10.

  	
  Conversion and Continuation of Borrowings

  	
  30

  
	
  SECTION 2.11.

  	
  [Intentionally Omitted]

  	
  31

  
	
  SECTION 2.12.

  	
  Prepayment

  	
  31

  
	
  SECTION 2.13.

  	
  Mandatory Prepayments

  	
  32

  
	
  SECTION 2.14.

  	
  Reserve Requirements; Change in Circumstances

  	
  34

  
	
  SECTION 2.15.

  	
  Change in Legality

  	
  35

  
	
  SECTION 2.16.

  	
  Indemnity

  	
  35

  
	
  SECTION 2.17.

  	
  Pro Rata Treatment

  	
  36

  
	
  SECTION 2.18.

  	
  Sharing of Setoffs

  	
  36

  
	
  SECTION 2.19.

  	
  Payments

  	
  37

  
	
  SECTION 2.20.

  	
  Taxes

  	
  37

  
	
  SECTION 2.21.

  	
  Assignment of Commitments Under Certain
  Circumstances; Duty to Mitigate

  	
  39

  
	
  SECTION 2.22.

  	
  Prepayment Premium

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  REPRESENTATIONS AND WARRANTIES

  	
  40

  
	
  SECTION 3.01.

  	
  Organization; Powers

  	
  40

  
	
  SECTION 3.02.

  	
  Authorization; No Conflicts

  	
  41

  
	
  SECTION 3.03.

  	
  Enforceability

  	
  41

  
	
  SECTION 3.04.

  	
  Governmental Approvals

  	
  41

  
	
  SECTION 3.05.

  	
  Financial Statements

  	
  41

  
	
  SECTION 3.06.

  	
  No Material Adverse Change

  	
  42

  
	
  SECTION 3.07.

  	
  Title to Properties; Possession Under Leases

  	
  42

  
	
  SECTION 3.08.

  	
  Subsidiaries

  	
  42

  
	
  SECTION 3.09.

  	
  Litigation; Compliance with Laws

  	
  43

  
	
  SECTION 3.10.

  	
  Agreements

  	
  43

  
	
  SECTION 3.11.

  	
  Federal Reserve Regulations

  	
  43

  
	
  SECTION 3.12.

  	
  Investment Company Act

  	
  44

  
	
  SECTION 3.13.

  	
  Use of Proceeds

  	
  44

  
	
  SECTION 3.14.

  	
  Tax Returns

  	
  44

  
				

 

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  SECTION 3.15.

  	
  No Material Misstatements

  	
  44

  
	
  SECTION 3.16.

  	
  Employee Benefit Plans

  	
  45

  
	
  SECTION 3.17.

  	
  Environmental Matters

  	
  45

  
	
  SECTION 3.18.

  	
  Insurance

  	
  46

  
	
  SECTION 3.19.

  	
  Security Documents

  	
  46

  
	
  SECTION 3.20.

  	
  Location of Real Property

  	
  47

  
	
  SECTION 3.21.

  	
  Labor Matters

  	
  47

  
	
  SECTION 3.22.

  	
  Intellectual Property

  	
  47

  
	
  SECTION 3.23.

  	
  Solvency

  	
  48

  
	
  SECTION 3.24.

  	
  Senior Debt

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  CONDITIONS OF LENDING

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  AFFIRMATIVE COVENANTS

  	
  51

  
	
  SECTION 5.01.

  	
  Existence; Businesses and Properties

  	
  51

  
	
  SECTION 5.02.

  	
  Insurance

  	
  51

  
	
  SECTION 5.03.

  	
  Obligations and Taxes

  	
  52

  
	
  SECTION 5.04.

  	
  Financial Statements, Reports, etc.

  	
  52

  
	
  SECTION 5.05.

  	
  Litigation and Other Notices

  	
  54

  
	
  SECTION 5.06.

  	
  Information Regarding Collateral

  	
  54

  
	
  SECTION 5.07.

  	
  Maintaining Records; Access to Properties and
  Inspections

  	
  54

  
	
  SECTION 5.08.

  	
  Use of Proceeds

  	
  55

  
	
  SECTION 5.09.

  	
  Additional Collateral, etc.

  	
  55

  
	
  SECTION 5.10.

  	
  Further Assurances

  	
  57

  
	
  SECTION 5.11.

  	
  Post-Closing Obligations

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  NEGATIVE COVENANTS

  	
  58

  
	
  SECTION 6.01.

  	
  Indebtedness

  	
  58

  
	
  SECTION 6.02.

  	
  Liens

  	
  62

  
	
  SECTION 6.03.

  	
  Sale and Lease-Back Transactions

  	
  64

  
	
  SECTION 6.04.

  	
  Investments, Loans and Advances

  	
  64

  
	
  SECTION 6.05.

  	
  Mergers, Consolidations, Sales of Assets and
  Acquisitions

  	
  65

  
	
  SECTION 6.06.

  	
  Restricted Payments; Restrictive Agreements

  	
  67

  
	
  SECTION 6.07.

  	
  Transactions with Affiliates

  	
  68

  
	
  SECTION 6.08.

  	
  Business of Holdings, the Borrower and Subsidiaries;
  Limitation on Hedging Agreements

  	
  68

  
	
  SECTION 6.09.

  	
  Other Indebtedness and Agreements

  	
  69

  
	
  SECTION 6.10.

  	
  Capital Expenditures

  	
  69

  
	
  SECTION 6.11.

  	
  [Intentionally Omitted]

  	
  69

  
	
  SECTION 6.12.

  	
  Senior Leverage Ratio

  	
  69

  
	
  SECTION 6.13.

  	
  [Intentionally Omitted]

  	
  70

  
	
  SECTION 6.14.

  	
  Fiscal Year

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  EVENTS OF DEFAULT

  	
  70

  
				

 

 ii
 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
  THE AGENTS AND THE ARRANGER

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  MISCELLANEOUS

  	
  76

  
	
  SECTION 9.01.

  	
  Notices

  	
  76

  
	
  SECTION 9.02.

  	
  Survival of Agreement

  	
  77

  
	
  SECTION 9.03.

  	
  Binding Effect

  	
  77

  
	
  SECTION 9.04.

  	
  Successors and Assigns

  	
  77

  
	
  SECTION 9.05.

  	
  Expenses; Indemnity

  	
  81

  
	
  SECTION 9.06.

  	
  Right of Setoff

  	
  82

  
	
  SECTION 9.07.

  	
  Applicable Law

  	
  82

  
	
  SECTION 9.08.

  	
  Waivers; Amendment

  	
  82

  
	
  SECTION 9.09.

  	
  Interest Rate Limitation

  	
  83

  
	
  SECTION 9.10.

  	
  Entire Agreement

  	
  83

  
	
  SECTION 9.11.

  	
  WAIVER OF JURY TRIAL

  	
  84

  
	
  SECTION 9.12.

  	
  Severability

  	
  84

  
	
  SECTION 9.13.

  	
  Counterparts

  	
  84

  
	
  SECTION 9.14.

  	
  Headings

  	
  84

  
	
  SECTION 9.15.

  	
  Jurisdiction; Consent to Service of Process

  	
  84

  
	
  SECTION 9.16.

  	
  Confidentiality

  	
  85

  
	
  SECTION 9.17.

  	
  Delivery of Lender Addenda

  	
  86

  
	
  SECTION 9.18.

  	
  USA PATRIOT Act Notice

  	
  86

  
	
  SECTION 9.19.

  	
  Intercreditor Agreement

  	
  86

  
				

 

	
  Exhibits and
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Form of Administrative Questionnaire

  	
   

  
	
  Exhibit B

  	
  Form of Affiliate Subordination Agreement

  	
   

  
	
  Exhibit C

  	
  Form of Assignment and Acceptance

  	
   

  
	
  Exhibit D

  	
  Form of Borrowing Request

  	
   

  
	
  Exhibit E

  	
  Form of Guarantee and Collateral Agreement

  	
   

  
	
  Exhibit F

  	
  Form of Lender Addendum

  	
   

  
	
  Exhibit G

  	
  Form of Mortgage

  	
   

  
	
  Exhibit H

  	
  Form of Perfection Certificate

  	
   

  
	
  Exhibit I

  	
  Form of Note

  	
   

  
	
  Exhibit J

  	
  Form of Exemption Certificate

  	
   

  
	
  Exhibit K

  	
  Form of Intercreditor Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 1.01(b)

  	
  Mortgaged Properties

  	
   

  
	
  Schedule 1.01(c)

  	
  Subsidiary Guarantor

  	
   

  
	
  Schedule 2.01

  	
  Commitments

  	
   

  
	
  Schedule 3.08

  	
  Subsidiaries

  	
   

  
	
  Schedule 3.18

  	
  Insurance

  	
   

  

 

 iii
 

 

	
  Schedule 3.19(a)

  	
  UCC Filing Offices

  	
   

  
	
  Schedule 3.19(c)

  	
  Mortgage Filing Offices

  	
   

  
	
  Schedule 3.20

  	
  Owned and Leased Real Property

  	
   

  
	
  Schedule 6.01

  	
  Existing Indebtedness

  	
   

  
	
  Schedule 6.02

  	
  Existing Liens

  	
   

  
	
  Schedule 6.04

  	
  Existing Investments

  	
   

  

 

 iv

SECOND LIEN CREDIT AGREEMENT dated as of January 22,
2007, among TRUE TEMPER CORPORATION, a Delaware corporation ( “Holdings”),
TRUE TEMPER SPORTS, INC., a Delaware corporation (the “Borrower”), the
LENDERS from time to time party hereto and CREDIT SUISSE, as administrative
agent (in such capacity, the “Administrative Agent”) and as collateral
agent (in such capacity, the “Collateral Agent”).

The parties hereto agree as follows:

ARTICLE I

DEFINITIONS

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

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

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

“Administrative Agent” shall have the meaning
assigned to such term in the preamble.

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

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

“Affiliate Subordination Agreement” shall mean
an Affiliate Subordination Agreement in the form of Exhibit B
pursuant to which intercompany obligations and advances owed by any Loan Party
are subordinated to the Obligations.

“Agents” shall have the meaning assigned to
such term in Article VIII.

“Agreement” means this Second Lien Credit
Agreement, as amended, supplemented, amended and restated or otherwise modified
from time to time.

“Alternate Base Rate” shall mean, for any day,
a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal
to the greater of (a) the Prime Rate in effect on such day and
(b) the Federal Funds Effective Rate in effect on such day plus 1/2 of
1%.  Any change in 

the Alternate Base Rate
due to a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective as of the opening of business on the effective date of such change in
the Prime Rate or the Federal Funds Effective Rate, respectively.

“Applicable Margin” shall mean, for any day,
(a) with respect to any Eurodollar Loan, 5.50% per annum and (b) with respect
to any ABR Loan, 4.50% per annum.

“Arranger” shall mean Credit Suisse Securities
(USA) LLC.

“Asset Sale” shall mean the sale, lease, sale
and leaseback, assignment (other than for security purposes), conveyance,
transfer, issuance or other disposition (by way of merger, casualty,
condemnation or otherwise) (any of the foregoing, a “Disposition”) by
Holdings, the Borrower or any of the Subsidiaries to any person other than the
Borrower or any Subsidiary Guarantor of (a) any Equity Interests of any of the
Subsidiaries (other than directors’ qualifying shares) or (b) any other
assets of Holdings, the Borrower or any of the Subsidiaries, including Equity
Interests of any person that is not a Subsidiary (other than
(i) inventory, obsolete or worn out assets, assets that are no longer
useful, scrap and Permitted Investments, in each case Disposed of in the
ordinary course of business, (ii) the sale or discount by the Borrower or
any Subsidiary, in each case without recourse and in the ordinary course of
business, of overdue accounts receivable arising in the ordinary course of
business, but only in connection with the compromise or collection thereof
consistent with customary industry practice (and not as part of any bulk sale
or financing transaction), (iii) the Disposition by any Subsidiary that is
not a Loan Party of its assets that do not constitute Collateral in connection
with a foreclosure by the applicable lenders with respect to any Indebtedness
of such Subsidiary to the extent that such assets are collateral security for
such Indebtedness, (iv) the licensing of intellectual property in the
ordinary course of business, (v) the settlement, release or surrender of
tort or other litigation claims, (vi) Dispositions between Subsidiaries
that are not Subsidiary Guarantors, (vii) Permitted Acquisitions or other
Investments by the Borrower or any Subsidiary that are expressly permitted by Section 6.04
and that do not involve a Disposition of any assets of Holdings, the Borrower
or any of the Subsidiaries to any person other than the Borrower or any
Subsidiary Guarantor and (viii) Permitted Asset
Swaps); provided that any Disposition or series of related Dispositions
described in clause (b) above (but not excluded in clauses (i)
through (viii) above) having a value not in excess of $250,000 shall be
deemed not to be an “Asset Sale” for purposes of this Agreement.

“Assignment and Acceptance” shall mean an
assignment and acceptance entered into by a Lender and an assignee (with the
consent of any person whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit C
or such other form as shall be approved by the Administrative Agent.

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

 2
 

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

“Borrower” shall have the meaning assigned to such
term in the preamble.

“Borrowing” shall mean Loans of the same Type
made, converted or continued on the same date and, in the case of Eurodollar
Loans, as to which a single Interest Period is in effect.

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

“Breakage Event” shall have the meaning
assigned to such term in Section 2.16.

“Business Day” shall mean any day other than a
Saturday, Sunday or day on which commercial banks in New York City are
authorized or required by law to close; provided, however, that
when used in connection with a Eurodollar Loan (including with respect to all
notices and determinations in connection therewith and any payments of
principal, interest or other amounts thereon), the term “Business Day”
shall also exclude any day on which banks are not open for dealings in dollar
deposits in the London interbank market.

“Capital Expenditures” shall mean, for any
period, with respect to any person, (a) the additions to property, plant
and equipment and other capital expenditures of such person and its
consolidated subsidiaries that are (or should be) set forth in a consolidated
statement of cash flows of such person for such period prepared in accordance
with GAAP and (b) Capital Lease Obligations incurred by such person and
its consolidated subsidiaries during such period, but excluding in each case
any such expenditure made (i) in accordance with the terms of this
Agreement to restore, replace or rebuild property to the condition of such
property immediately prior to any damage, loss, destruction or condemnation of
such property, to the extent such expenditure is made with insurance proceeds,
condemnation awards or damage recovery proceeds relating to any such damage,
loss, destruction or condemnation, (ii) with the proceeds from the sale or
other disposition or trade-in or exchange of assets to the extent utilized to
purchase functionally equivalent assets, (iii) with the proceeds of a
substantially contemporaneous equity contribution from Holdings (other than any
Cure Securities) and (iv) consisting of the Proposed Domestic Acquisition.

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

“Change in Control” shall mean (a) if at
any time prior to a Qualified IPO, the Permitted Holders shall fail to own
directly or indirectly, beneficially and of record, Equity Interests
representing more than 50% of the aggregate ordinary voting power and aggregate
equity value represented by the issued and outstanding Equity Interests in
Holdings; (b) if after a Qualified IPO, any “person” or “group” (within
the meaning of Rule 13d-5 of the Securities Exchange Act 

 3
 

of 1934 as in effect on
the date hereof) other than the Permitted Holders shall own directly or
indirectly, beneficially or of record, Equity Interests representing either
(i) more than 30% of either the aggregate ordinary voting power or the
aggregate equity value represented by the issued and outstanding Equity
Interests in Holdings or (ii) a greater percentage of either the aggregate
ordinary voting power or the aggregate equity value represented by the issued
and outstanding Equity Interests in Holdings then held, directly or indirectly,
beneficially and of record, by the Permitted Holders; (c) if a majority of
the seats (other than vacant seats) on the board of directors of Holdings shall
at any time be occupied by persons who are not Continuing Directors;
(d) if Holdings shall at any time fail to own directly or indirectly, beneficially
and of record, 100% of each class of issued and outstanding Equity Interests in
the Borrower free and clear of all Liens (other than Liens expressly permitted
by clauses (b), (d) and (s) of Section 6.02);
or (e) if any change of control (or similar
event, however denominated) shall occur under the Subordinated Note Documents.

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

“Charges” shall have the meaning assigned to
such term in Section 9.09.

“Closing Date” shall mean January 22, 2007.

“Collateral” shall mean all property and assets
of the Loan Parties, now owned or hereafter acquired, upon which a Lien is
purported to be created by any Security Document.

“Collateral Agent” shall have the meaning
assigned to such term in the preamble.

“Commitment” shall mean, with respect to any
Lender, the commitment of such Lender to make a Loan hereunder as set forth on
the Lender Addendum delivered by such Lender or as set forth on Schedule 2.01,
or in the Assignment and Acceptance pursuant to which such Lender assumed its Commitment,
as applicable, as the same may be (a) reduced from time to time pursuant to
Section 2.09 and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.04.  The initial aggregate amount of the Commitments
is $45,000,000.

“Consolidated EBITDA” shall mean, for any
period, Consolidated Net Income for such period plus (a) without
duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of (i) Consolidated Interest Expense for such period,
(ii) consolidated income tax expense for such period, (iii) all
amounts attributable to depreciation and amortization for such period,
including any increased expense or depreciation or amortization resulting from
purchase accounting adjustments or the write-up of inventory in connection with
acquisitions and amortization or write-off of debt discount and debt issuance
costs and commissions, discounts and other fees and charges associated with
Indebtedness, (iv) any noncash charges (other than the write-down of
accounts receivable or inventory held for sale

 4
 

(other than in connection
with Permitted Acquisitions consummated after the Closing Date)) for such
period, (v) any restructuring costs for such period that are incurred in
connection with Permitted Acquisitions consummated after the Closing Date,
(vi) any non-recurring or extraordinary fees, charges or other expenses
for such period, (vii) bonus and retention
payments, including earn-outs, stock appreciation rights, non-compete payments,
phantom stock plans and similar payments, made or incurred in connection with
Permitted Acquisitions consummated after the Closing Date and the financing
thereof, (viii) management fees paid during such period,
(ix) start-up and related costs associated with the Chinese operations not
to exceed the lesser of $1,000,000 and the actual amount of such start-up and
related costs in the fiscal years ending December 31, 2004 and
December 31, 2005 (provided that to the extent that all or any
portion of the income of any person is excluded from Consolidated Net Income
pursuant to the definition thereof for all or any portion of such period any
amounts set forth in the preceding clauses (i) through (ix)
that are attributable to such person shall not be included for purposes of this
definition for such period or portion thereof), (x) if and when incurred, the
amount of integration costs (not to exceed $3,000,000 in the aggregate)
associated with the Proposed Domestic Acquisition incurred 12 months prior to
or after the closing of that acquisition, (xi) for fiscal years 2006, 2007 and
2008, the amount of start-up and transition costs (not to exceed $1,500,000 in
any single fiscal year or $3,000,000 in the aggregate for all such fiscal
years) associated with the Borrower’s establishment and expansion of its
foreign operations with respect to the Foreign Target, (xii) for fiscal years
2006, 2007 and 2008, the amount of transition and shut-down costs (including
closure (in whole or in part) of facilities, relocation of assets, severance
costs and related amounts) associated with the Borrower’s establishment and
expansion of its foreign operations with respect to the Foreign Target, not to
exceed $1,500,000 in any single fiscal year or $3,000,000 in the aggregate for
all such fiscal years and (xiii) for purposes of determining compliance with
the financial covenants in Sections 6.11, 6.12 and 6.13,
the Cure Amount received by the Borrower for such period and permitted to be
included in Consolidated EBITDA pursuant to (and subject to the provisions in) Section
7.01, and minus (b) without duplication, to the extent included in the
statement of such Consolidated Net Income for such period, (i) all cash
payments made during such period on account of reserves, restructuring charges
and other non-cash charges added to Consolidated Net Income pursuant to clause (a)(iv)
above in a previous period and (ii) all non-cash items of income for such
period, all determined on a consolidated basis in accordance with GAAP; provided
that for purposes of calculating Consolidated EBITDA (other than for purposes
of the determination of Excess Cash Flow) for any period (A) the Consolidated
EBITDA of any Acquired Entity acquired by the Borrower or any Subsidiary
pursuant to a Permitted Acquisition during such period shall be included on a pro forma basis for such period (assuming the consummation
of such acquisition and the incurrence or assumption of any Indebtedness in
connection therewith occurred as of the first day of such period) and (B) the Consolidated
EBITDA of any person or line of business Disposed of by the Borrower or any
Subsidiary during such period for shall be excluded for such period (assuming
the consummation of such sale or other disposition and the repayment of any
Indebtedness in connection therewith occurred as of the first day of such
period).

“Consolidated Interest Expense” shall mean, for
any period, the cash interest expense (including imputed interest expense in
respect of Capital Lease Obligations and Synthetic Lease Obligations) of the
Borrower and the Subsidiaries for such period (including all commissions,
discounts and other fees and charges owed by the Borrower and the Subsidiaries
with respect to 

 5
 

letters of credit and
bankers’ acceptance financing), net of interest income, in each case determined
on a consolidated basis in accordance with GAAP.  For purposes of the foregoing, interest
expense shall be determined after giving effect to any net payments made or
received by the Borrower or any Subsidiary with respect to interest rate
Hedging Agreements (excluding (i) cash costs paid to unwind a Hedging Agreement
existing on the Closing Date and (ii) interest expense attributable to up to
$5,000,000 of outstanding Indebtedness incurred by the Foreign Target from a
lender that is organized or doing business in a jurisdiction in which the
Foreign Target is located or a province thereof).

“Consolidated Net Income” shall mean, for any
period, the net income or loss of the Borrower and the Subsidiaries for such
period determined on a consolidated basis in accordance with GAAP; provided
that there shall be excluded (a) the income of any Subsidiary to the extent
that the declaration or payment of dividends or similar distributions
(including a distribution in respect of intercompany Indebtedness) by such
Subsidiary of that income is not at the time permitted by operation of the
terms of its charter or any agreement, instrument, judgment, decree, statute,
rule or governmental regulation applicable to such Subsidiary, (b) the income or
loss of any person accrued prior to the date it becomes a Subsidiary or is
merged into or consolidated with the Borrower or any Subsidiary or the date
that such person’s assets are acquired by the Borrower or any Subsidiary, (c)
the income of any person (other than a Subsidiary) in which any other person
(other than the Borrower or a Subsidiary or any director holding qualifying
shares in accordance with applicable law) has an interest, except to the extent
of the amount of dividends or other distributions actually paid to the Borrower
or a Subsidiary by such person during such period, and (d) any extraordinary
gains or losses.

“Continuing Directors” shall mean, at any time
of determination, any member of the board of directors of Holdings who (a) was
a member of such board of directors on the Closing Date, (b) was nominated for
election or elected to such board of directors with the approval of a majority
of the Continuing Directors who were members of such board of directors at the
time of such nomination or election, (c) prior to the consummation of a
Qualified IPO, was nominated by the Sponsors pursuant to the Stockholders
Agreement or (d) following the consummation of a Qualified IPO, was nominated
for election or elected to such board of directors by the Sponsors at such time
when the Permitted Holders are the beneficial owners, directly or indirectly,
of Equity Interests representing more than 50% of the aggregate ordinary voting
power represented by the issued and outstanding Equity Interests in Holdings.

“Control” shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of a person, whether through the ownership of voting securities, by
contract or otherwise, and the terms “Controlling” and “Controlled”
shall have meanings correlative thereto.

“Cure Amount” shall have the meaning assigned
to such term in Section 7.01.

“Cure Right” shall have the meaning assigned to
such term in Section 7.01.

“Cure Securities” shall mean equity securities
of Holdings (the net proceeds of which are contributed to the common equity of
the Borrower) having no mandatory redemption, repurchase, repayment or similar
requirements prior to the date which occurs six months after the 

 6
 

Maturity Date, and upon which
all dividends or distributions shall be payable in additional shares of such
security only, and which are not convertible or exchangeable into any other
instrument (other than common equity of Holdings) and are not guaranteed or
secured.

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

“Current Liabilities” shall mean, at any time,
the consolidated current liabilities of the Borrower and the Subsidiaries at
such time, but excluding, without duplication, (a) the current portion of any
long-term Indebtedness and (b) outstanding Revolving Loans and Swingline Loans
(in each case under and as defined in the First Lien Credit Agreeement) and
other revolving debt.

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

“Discharge of First Lien Obligations” shall
have the meaning assigned to such term in the Intercreditor Agreement.

“Disposition” shall have the meaning assigned
to such term in the definition of “Asset Sale” and the term “Dispose”
shall have a correlative meaning.

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

“Domestic Subsidiaries” shall mean all
Subsidiaries incorporated, formed or organized under the laws of the United
States of America, any State thereof or the District of Columbia.

“Engagement Letter” shall mean the Engagement
Letter dated as of December 13, 2006, between the Borrower and Credit Suisse
Securities (USA) LLC.

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

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

 7
 

“Environmental Permit” shall mean any Permit
under Environmental Law.

“Equity Interests” shall mean shares of capital
stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity interests in any
person, or any obligations convertible into or exchangeable for, or giving any
person a right, option or warrant to acquire, such equity interests or such
convertible or exchangeable obligations.

“Equity Issuance” shall mean any issuance or
sale by Holdings or the Borrower of any Equity Interests of Holdings or the Borrower,
as applicable, or the receipt by Holdings or the Borrower of any capital
contribution, as applicable, except in each case for (a) in the case of the
Borrower, any issuance or sale to, or any receipt of any capital contribution
from, Holdings, (b) any issuance of directors’
qualifying shares, (c) sales or issuances of common stock of Holdings to
management or employees of Holdings, the Borrower or any Subsidiary under any
employee stock option or stock purchase plan or employee benefit plan in existence
from time to time in the ordinary course of business, (d) any issuance or sale
by, or capital contribution in, Holdings or the Borrower in a transaction not
constituting a public offering so long as the Net Cash Proceeds thereof are (i)
on or before the date of receipt thereof, designated by Holdings or the
Borrower, as the case may be, pursuant to a notice to the Administrative Agent
(specifying the amount and designated use thereof) for use to fund a Permitted
Acquisition in accordance with the terms hereof and (ii) within 30 days of the
receipt thereof, applied to fund such Permitted Acquisition in accordance with
the terms hereof; provided that in the case of any failure to satisfy
the requirement in clause (ii) such Net Cash Proceeds shall be deemed to
have been received for purposes of Section 2.13 when the 30-day
period referred to therein expires and (e) Cure Securities.

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

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

“ERISA Event” shall mean (a) any “reportable
event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder, with respect to a Benefit Plan (other than an event for which the
30-day notice period is waived); (b) the existence with respect to any Benefit
Plan of an “accumulated funding deficiency” (as defined in Section 412 of the
Tax Code or Section 302 of ERISA), whether or not waived; (c) the filing
pursuant to Section 412(d) of the Tax Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Benefit Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates
of any liability under Title IV of ERISA with respect to the termination of any
Benefit Plan or the withdrawal or partial withdrawal of the Borrower or any of
its ERISA Affiliates from any Benefit Plan or Multiemployer Plan; (e) the
receipt by the Borrower or any of its ERISA Affiliates from the PBGC or a plan
administrator of any notice relating to the intention to terminate any Benefit
Plan or Plans or to appoint a trustee to administer any Benefit Plan; (f) the
adoption of any amendment to a Benefit Plan that would require the provision of
security 

 8
 

pursuant to Section
401(a)(29) of the Tax Code or Section 307 of ERISA; (g) the receipt by the
Borrower or any of its ERISA Affiliates of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any of its ERISA Affiliates of any
notice, concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA; (h) the occurrence of
a “prohibited transaction” with respect to which the Borrower or any of the
Subsidiaries is a “disqualified person” (within the meaning of Section 4975 of
the Tax Code) or with respect to which the Borrower or any such Subsidiary
could otherwise be liable; or (i) any other event or condition with respect to
a Benefit Plan or Multiemployer Plan that could result in liability of the
Borrower or any Subsidiary.

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

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

“Excess Cash Flow” shall mean, for any fiscal
year of the Borrower, the excess of (a) the sum, without duplication, of
(i) Consolidated EBITDA for such fiscal year (calculated without giving
effect to the last proviso set forth in the definition of Consolidated EBITDA)
and (ii) the decrease, if any, in Current Assets minus Current Liabilities
(other than for the Foreign Target) from the beginning to the end of such
fiscal year over (b) the sum, without duplication, of (i) the amount
of any Taxes payable in cash by Holdings and the Subsidiaries with respect to
such fiscal year, (ii) Consolidated Interest Expense (including for
Indebtedness incurred in connection with the Proposed Domestic Acquisition and
the Proposed Foreign Acquisition) for such fiscal year payable in cash,
(iii) the aggregate amount paid in cash in respect of Capital Expenditures
(including in connection with the Proposed Domestic Acquisition and for the
Proposed Foreign Acquisition) and Permitted Acquisitions in accordance with Sections 6.10
and 6.04, respectively, during such fiscal year (and including in such
fiscal year, in the case of Capital Expenditures with respect to which the
obligation to make payment has accrued in the last fiscal quarter of such
fiscal year but such obligation is not payable in cash until the immediately
following fiscal quarter, the amount to be paid in cash in such following
fiscal quarter; provided that such amount, when paid in such following
fiscal quarter, shall not be included in this clause (iii)), in
each case, except to the extent financed with the proceeds of Indebtedness,
equity issuances, casualty proceeds, condemnation proceeds or other proceeds
that would not be included in Consolidated EBITDA, (iv) permanent
repayments of Indebtedness (other than mandatory prepayments of Loans under Section
2.13(b) of the First Lien Credit Agreement and under Section 2.13)
made by the Borrower and the Subsidiaries during such fiscal year, but only to
the extent that such prepayments by their terms cannot be reborrowed or redrawn
and do not occur in connection with a refinancing of all or any portion of such
Indebtedness, (v) the increase, if any, in Current Assets minus Current
Liabilities (in each case, other than for the Foreign Target) from the
beginning to the end of such fiscal year and (vi) the aggregate amount of
Investments made by the Borrower and Subsidiaries in the Foreign Target.

“Excluded Foreign Subsidiaries” shall mean, at
any time, any Foreign Subsidiary that is (or is treated as) for United States
federal income tax purposes either (a) a corporation or (b) a 

 9
 

pass-through entity owned
directly or indirectly by another Foreign Subsidiary that is (or is treated as)
a corporation.

“Excluded Taxes” shall mean, with respect to
the Administrative Agent, any Lender or any other recipient of any payment to
be made by or on account of any obligation of the Borrower hereunder,
(a) income or franchise taxes imposed on (or measured by) its net income
as a result of a present or former connection between such recipient and the
jurisdiction imposing such tax (or any political subdivision thereof), other
than any such connection arising solely from such recipient having executed,
delivered or performed its obligations or received a payment under, or
enforced, this Agreement or any other Loan Document and (b) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 2.21(a)), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party to this Agreement (or designates a new lending office) or is
attributable to such Foreign Lender’s failure to comply with Section 2.20(d),
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 2.20(a).

“Exempted Assets Sales” means a Disposition of
assets (whether real or personal, and whether tangible or intangible), within
nine months (unless otherwise extended for no more than three months by the
Administrative Agent in its sole discretion) following their acquisition by the
Borrower or a Subsidiary in the Proposed Domestic Acquisition or the
acquisition of the assets of, or Equity Interests of (resulting in a
Subsidiary), a person in connection with the Proposed Foreign Acquisition (but
in each case only as to assets actually acquired in the Proposed Domestic
Acquisition or such an acquisition in connection with the Proposed Foreign
Acquisition).

“Facility” shall mean the Commitments and the
Loans made thereunder.

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

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

“First Lien Administrative Agent” means the “Administrative
Agent” under and as defined in the First Lien Credit Agreement.

“First Lien Collateral Agent” means the “Collateral
Agent” under and as defined in the First Lien Credit Agreement.

“First Lien Credit Agreement” means the Amended
and Restated Credit Agreement dated as of March 27, 2006, as amended,
supplemented, amended and restated or otherwise modified from time to time
among Holdings, the Borrower, the lenders from time to time party thereto and 

 10
 

Credit Suisse, Cayman
Islands Branch, as administrative agent, collateral agent, swingline lender and
issuing bank.

“First Lien Loan Documents” means the “Loan
Documents” under and as defined in the First Lien Credit Agreement, as amended,
supplemented, amended and restated or otherwise modified from time to time.

“First Lien Indebtedness” means Indebtedness
arising under the First Lien Loan Documents.

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

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

“Foreign Target” means, collectively, any
direct or indirect Subsidiaries of the Borrower that are organized or existing
under the laws of a foreign jurisdiction previously identified in writing to
the Administrative Agent or a province thereof or a majority of the value (as determined
in good faith by the Borrower) of whose properties or assets are located in
such jurisdiction or a province thereof.

“Foreign Target Capital Expenditures” shall
mean, for any period, (a) expenditures made with respect to the Foreign Target
outside of the ordinary course of business (including the acquisition of the
Equity Interests (resulting in a Subsidiary) of, all or substantially all of
the assets of, a line of business of, or a business unit or division of, any
person in connection with the Proposed Foreign Acquisition, and the acquisition
of any other fixed or capital assets acquired outside of the ordinary course of
business from any person in connection with the Proposed Foreign Acquisition)
and (b) expenditures made in the ordinary course of business to restore,
replace or rebuild property of the Foreign Target to the condition of such
property immediately prior to any damage, loss, destruction or condemnation of
such property.

“Funded Debt” shall mean as of the last day of
any fiscal quarter, Total Debt at such time less the amount of cash and
Permitted Investments of the Borrower and the Subsidiary Guarantors at such
time in an aggregate amount not to exceed $7,500,000.

“Funded Senior Debt” shall mean, as of the last
day of any fiscal quarter, Funded Debt at such date, excluding the Indebtedness
represented by the Subordinated Notes.

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

“Governmental Authority” shall mean the
government of the United States of America or any other nation, 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.

 11
 

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

“Guarantee” of or by any person (the “guarantor”)
shall mean any obligation, contingent or otherwise, of (a) the guarantor
or (b) another person (including any bank under a letter of credit) to
induce the creation of which the guarantor has issued a reimbursement,
counterindemnity or similar obligation, in either case guaranteeing or having
the economic effect of guaranteeing any Indebtedness or other obligation of any
other person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation, contingent or otherwise, of the
guarantor, direct or indirect, (i) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness or other obligation or
to purchase (or to advance or supply funds for the purchase of) any security
for the payment of such Indebtedness or other obligation, (ii) to purchase or lease
property, securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment of such Indebtedness or other
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or other obligation, (iv)
as an account party in respect of any letter of credit or letter of guaranty
issued to support such Indebtedness or obligation or (v) to otherwise assure or
hold harmless the owner of such Indebtedness or other obligation against loss
in respect thereof; provided, however, that the term “Guarantee”
shall not include endorsements for collection or deposit in the ordinary course
of business.

“Guarantee and Collateral Agreement” shall mean
the Second Lien Guarantee and Collateral Agreement in the form of Exhibit E,
to be executed and delivered by Holdings, the Borrower and each Subsidiary
Guarantor.

“Guarantors” shall mean Holdings and the
Subsidiary Guarantors.

“Hazardous Materials” shall mean any petroleum
(including crude oil or fraction thereof) or petroleum products or byproducts,
or any pollutant, contaminant, chemical, compound, constituent, or hazardous,
toxic or other substances, materials or wastes defined, or regulated as such
by, or pursuant to, any Environmental Law, or requires removal, remediation or
reporting under any Environmental Law, including asbestos, or asbestos
containing material, radon or other radioactive material, polychlorinated
biphenyls and urea formaldehyde insulation.

“Hedging Agreement” shall mean any agreement
with respect to any swap, forward, future or derivative transaction or option
or similar agreement involving, or settled by reference to, one or more rates,
currencies, fuel or other commodities, equity or debt instruments or
securities, or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or any
combination of these transactions; provided, however, that no
phantom stock or similar plan providing for payments and on account of services
provided by current or former directors, officers, employees or consultants of
Holdings, the Borrower or any Subsidiary shall be a Hedging Agreement.

“Holdings” shall have the meaning assigned to
such term in the preamble.

“Indebtedness” of any person shall mean,
without duplication, (a) all obligations of such person for borrowed
money, (b) all obligations of such person evidenced by bonds, debentures, 

 12
 

notes or similar
instruments, (c) all obligations of such person under conditional sale or
other title retention agreements relating to property or assets acquired by
such person, (d) all obligations of such person in respect of the deferred
purchase price of property or services (other than current trade accounts
payable incurred in the ordinary course of business), (e) all obligations
of such person, contingent or otherwise, to purchase, redeem, retire or
otherwise acquire for value any Equity Interests in such person, (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such person, whether or not the Indebtedness
secured thereby has been assumed, (g) all Guarantees by such person of
Indebtedness of others, (h) all Capital Lease Obligations or Synthetic
Lease Obligations of such person, (i) all obligations, contingent or
otherwise, of such person as an account party in respect of letters of credit
and letters of guaranty and (j) all obligations, contingent or otherwise, of
such person in respect of bankers’ acceptances. 
The Indebtedness of any person shall include the Indebtedness of any
other person (including any partnership in which such person is a general
partner) to the extent such person is liable therefor as a result of such
person’s ownership interest in, or other relationship with, such other person,
except to the extent the terms of such Indebtedness provide (including by a
non-recourse nature) that such person is not liable therefor.

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

“Indemnitee” shall have the meaning assigned to
such term in Section 9.05(b).

“Information” shall have the meaning assigned
to such term in Section 9.16.

“Intellectual Property Collateral” shall have
the meaning assigned to such term in the Guarantee and Collateral Agreement.

“Intellectual Property Security Agreement”
shall mean all Intellectual Property Security Agreements to be executed and
delivered by the Loan Parties, each substantially in the applicable form
required by the Guarantee and Collateral Agreement.

“Intercreditor Agreement” shall mean the
Intercreditor Agreement dated as of the date hereof, in substantially the form
of Exhibit K, entered into by and among Holdings, the Borrower, the
Collateral Agent and Credit Suisse, Cayman Islands Branch, as First Lien
Collateral Agent.

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

“Interest Period” shall mean, with respect to
any Eurodollar Borrowing, the period commencing on the date of such Borrowing
and ending on the numerically corresponding day in the calendar month that is
1, 2, 3 or 6 months thereafter (or 9 or 12 months thereafter if, at the time of
the relevant Borrowing, an interest period of such duration is available to all
Lenders participating therein), as the Borrower may elect; provided, however,
that (a) if any Interest 

 13
 

Period would end on a day
other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in
the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (b) any Interest Period that commences on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period.  Interest shall accrue
from and including the first day of an Interest Period to but excluding the
last day of such Interest Period.  For
purposes hereof, the date of a Borrowing initially shall be the date on which
such Borrowing is made and thereafter shall be the effective date of the most
recent conversion or continuation of such Borrowing.

“Investments” shall have the meaning assigned
to such term in Section 6.04.

“Jineng” shall mean Jineng Composite Materials
and Products (Guangzhou) Company Ltd., a Subsidiary organized under the laws of
China.

“Lender Addendum” shall mean, with respect to
any initial Lender, a Lender Addendum in the form of Exhibit F, or such
other form as may be supplied by the Administrative Agent, to be executed and
delivered by such Lender on the Closing Date.

“Lenders” shall mean (a) the persons that
deliver a Lender Addendum (other than any such person that has ceased to be a
party hereto pursuant to an Assignment and Acceptance) and (b)
any person that has become a party hereto pursuant to an Assignment and
Acceptance.

“Leverage Ratio” shall mean, on the last day of
any fiscal quarter, the ratio of (a) Funded Debt on such date to (b)
Consolidated EBITDA for the period of four consecutive fiscal quarters most
recently ended on or prior to such date, taken as one accounting period.

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

“Lien” shall mean, with respect to any asset,
(a) any mortgage, deed of trust, lien (statutory or otherwise), pledge,
hypothecation, encumbrance, collateral assignment, charge or security interest
in, on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease 

 14
 

having substantially the
same economic effect as any of the foregoing) relating to such asset and (c) in
the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

“Loan Documents” shall mean this Agreement and
the Security Documents.

“Loan Parties” shall mean Holdings, the
Borrower and each Subsidiary (other than a Foreign Subsidiary) that is or
becomes a party to a Loan Document.

“Loans” shall mean the term loans made by the
Lenders pursuant to this Agreement.

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

“Material Adverse Effect” shall mean a material
adverse condition or material adverse change in or materially affecting (a) the
business, assets, liabilities, operations or condition (financial or otherwise)
of Holdings, the Borrower and the Subsidiaries, taken as a whole, or (b) the validity or enforceability of any of the Loan
Documents or the material rights and remedies of the Arranger, the
Administrative Agent, the Collateral Agent or the Secured Parties thereunder.

“Material Indebtedness” shall mean Indebtedness
(other than the Loans), or obligations in respect of one or more Hedging
Agreements, of any one or more of Holdings, the Borrower and the Subsidiaries
in an aggregate principal amount exceeding $6,000,000.  For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of Holdings, the
Borrower or any Subsidiary in respect of any Hedging Agreement at any time
shall be the maximum aggregate amount (giving effect to any netting agreements)
that Holdings, the Borrower for such Subsidiary would be required to pay if
such Hedging Agreement were terminated at such time.

“Maturity Date” shall mean June 30, 2011.

“Maximum Rate” shall have the meaning assigned
to such term in Section 9.09.

“Moody’s” shall mean Moody’s Investors Service,
Inc.

“Mortgaged Properties” shall mean, initially,
each parcel of real property and the improvements thereto owned or leased by a
Loan Party and specified on Schedule 1.01(b), and shall include each
other parcel of real property and improvements thereto with respect to which a
Mortgage is granted pursuant to Section 5.09 or 5.10.

“Mortgages” shall mean the fee or leasehold
mortgages or deeds of trust, assignments of leases and rents and other security
documents granting a Lien on any Mortgaged Property to secure the Obligations,
if such Mortgaged Property is owned, in form reasonably satisfactory to the
Collateral Agent or, if such Mortgaged Property is leased, in the form of Exhibit
G, as the case may be, with such changes as shall be advisable under the
law of the jurisdiction in which such Mortgage is to be recorded and as are
reasonably satisfactory to the Collateral Agent, as the same may be amended,
supplemented, replaced or otherwise modified from time to time in accordance
with this Agreement.

 15
 

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

“Net Cash Proceeds” shall mean (a) with respect
to any Asset Sale or Recovery Event, the proceeds thereof in the form of cash
and Permitted Investments (including any such proceeds subsequently received
(as and when received) in respect of noncash consideration initially received),
net of (i) selling expenses (including reasonable and customary broker’s or
investment banker’s fees or commissions, legal fees, transfer and similar taxes
incurred by the Borrower and the Subsidiaries in connection therewith and the
Borrower’s good faith estimate of income taxes paid or payable in connection
with such sale, after taking into account any available tax credits or
deductions and any tax sharing arrangements), (ii) amounts provided as a
reserve, in accordance with GAAP, against any liabilities under any
indemnification obligations or purchase price adjustment associated with such
Asset Sale (provided that, to the extent and at the time any such
amounts are released from such reserve, such amounts shall constitute Net Cash
Proceeds) and (iii) the principal amount, premium or penalty, if any, interest
and other amounts on any Indebtedness for borrowed money which is secured by
the asset sold in such Asset Sale and which is required to be repaid with such
proceeds (other than any such Indebtedness assumed by the purchaser of such
asset); provided, however, that, if (x) the Borrower shall deliver
a certificate of a Financial Officer of the Borrower to the Administrative
Agent within three Business Days of the time of receipt thereof setting forth
the Borrower’s intent to reinvest such proceeds in assets of a kind then used
or usable in the business of the Borrower and the Subsidiaries within 365 days
of receipt of such proceeds and (y) no Event of Default shall have occurred and
be continuing at the time of such certificate, such proceeds shall not
constitute Net Cash Proceeds except to the extent not so used at the end of
such 365-day period, at which time such proceeds shall be deemed to be Net Cash
Proceeds; provided further, however, that, if
(A) such proceeds shall result from an Asset Sale or Recovery Event to the
extent involving assets, rights or other property of a Subsidiary that is not a
Loan Party, (B) the terms of any Indebtedness of such Subsidiary require that
such proceeds be applied to repay such Indebtedness, (C) the Borrower shall
deliver a certificate of a Financial Officer to the Administrative Agent within
three Business Days of the time of receipt thereof setting forth the Borrower’s
intent to use such proceeds to repay such Indebtedness of such Subsidiary to
the extent required thereby and, if such Indebtedness is revolving credit
Indebtedness, to correspondingly reduce commitments with respect thereto,
within 365 days of receipt of such proceeds and (D) no Event of Default shall
have occurred and be continuing at the time of such certificate, such proceeds
shall not constitute Net Cash Proceeds except to the extent not so used at the
end of such 365-day period, at which time such proceeds shall be deemed to be
Net Cash Proceeds; and (b) with respect to any issuance or disposition of
Indebtedness or any Equity Issuance, the cash proceeds thereof, net of all
taxes and reasonable and customary fees (including legal fees), commissions,
underwriting discounts, costs and other expenses incurred by the Borrower and
the Subsidiaries in connection therewith.

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

“Other Taxes” shall mean any and all present or
future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies (including interest, fines, penalties 

 16
 

and additions to tax)
arising from any payment made under any Loan Document or from the execution,
delivery or enforcement of, or otherwise with respect to, any Loan Document.

“PBGC” shall mean the Pension Benefit Guaranty
Corporation referred to and defined in ERISA and any successor entity
performing similar functions.

“Perfection Certificate” shall mean the
Pre-Closing UCC Diligence Certificate substantially in the form of Exhibit H
or any other form approved by the Collateral Agent.

“Permits” shall mean any and all material
franchises, licenses, leases, permits, approvals, notifications,
certifications, registrations, authorizations, exemptions, qualifications,
easements, rights of way, Liens and other rights, privileges and approvals
required under any Requirement of Law.

“Permitted Acquisition” shall mean (a) the
Proposed Domestic Acquisition and the acquisition of the assets of, or Equity
Interests of (resulting in a Subsidiary), a person in connection with the
Proposed Foreign Acquisition and (b) any other acquisition by the Borrower or
any Subsidiary of all or substantially all the assets of a person or line of
business of such person, or all of the Equity Interests of a person (referred
to herein as the “Acquired Entity”); provided that (i) the
Acquired Entity shall be a going concern and shall be in a Permitted Business;
(ii) at the time of such transaction (A) both before and after giving effect
thereto, no Event of Default or Default shall have occurred and be continuing;
(B) if the aggregate consideration paid in connection with such acquisition and
any related acquisition (including any Indebtedness of the Acquired Entity that
is assumed by the Borrower or any Subsidiary following such acquisition) is (x) $5,000,000 or more, then the Senior Leverage Ratio
would be at least 0.25 to 1.0 less than the maximum Senior Leverage Ratio
permitted under Section 6.12 at such time or (y) less than $5,000,000,
then the Borrower would be in compliance with the covenant set forth in Section 6.12,
in each case described in this clause (B) as of the most recently
completed period ending prior to such transaction for which the financial
statements and certificates required by Section 5.04(a) or 5.04(b)
were required to be delivered or for which comparable financial statements have
been filed with or furnished to the Securities and Exchange Commission, after
giving pro forma effect to such transaction and
to any other event occurring after such period as to which pro forma
recalculation is appropriate (including any other transaction described in this
definition occurring after such period) as if such transaction (and the
occurrence or assumption of any Indebtedness in connection therewith) had
occurred as of the first day of such period; and (C)
in the case of other than the Proposed Foreign Acquisition, after giving effect
to such acquisition, there must be at least $5,000,000 of unused and available
Revolving Credit Commitments under and as defined in the First Lien Credit
Agreement; and (iii) the Borrower shall comply, and shall cause the Acquired
Entity to comply, with the applicable provisions of Sections 5.09 and 5.10
and the Security Documents.

“Permitted Asset Swap” shall mean any transfer
of properties or assets by the Borrower or any of the Subsidiaries in which at
least 90% of the consideration received by the transferor consists of
properties or assets (other than cash or Permitted Investments) useful in the
business of the Borrower or the Subsidiaries; provided that (a) the
aggregate fair market value (as determined in good faith by the board of
directors of the Borrower) of the property or assets being transferred by the
Borrower or such Subsidiary is not greater than the aggregate fair 

 17
 

market value (as determined
in good faith by the board of directors of the Borrower) of the property or
assets received by the Borrower or such Subsidiary in such transfer and (b) the
aggregate fair market value (as determined in good faith by the board of
directors of the Borrower) of all property or assets transferred by the
Borrower or any of the Subsidiaries in such transfer, together with the
aggregate fair market value of all other property or assets transferred in
prior Permitted Asset Swaps in such fiscal year, shall not exceed $3,000,000 in
any fiscal year.

“Permitted Business” shall mean any business
conducted or proposed to be conducted by the Borrower and the Subsidiaries on
the date of this Agreement or any business that is similar, reasonably related,
incidental or ancillary thereto or to the manufacture of sports equipment or
metal or graphite products.

“Permitted Holders” shall mean the Sponsor and
the Sponsor Related Parties.

“Permitted Holdings Indebtedness” shall mean
Indebtedness of Holdings which (a) does not require the payment of cash
interest, does not mature, and is not subject to mandatory repurchase,
redemption or amortization (other than pursuant to customary asset sale or
change of control provisions requiring redemption or repurchase only if and to
the extent permitted by this Agreement), in each case, prior to the date that
is six months after the Maturity Date, (b) is not
secured by any assets of Holdings, the Borrower or any Subsidiary, (c) is not
Guaranteed by the Borrower or any Subsidiary, (d) is not exchangeable or
convertible into Indebtedness of Holdings (except other Permitted Holdings
Indebtedness), the Borrower or any Subsidiary or any preferred stock or other
Equity Interest (other than common equity of Holdings, provided that any
such exchange or conversion, if effected, would not result in a Change in
Control), (e) is subordinated to the Obligations to the same degree (or to a
greater degree) as those obligations that are subject to the Subordinated Notes
and (f) if at the time of such incurrence the Senior Leverage Ratio shall be
greater than 3.50 to 1.00 as of the most recently completed period ending prior
to such transaction for which financial statements and certificates required by
Section 5.04(a) or 5.04(b) were required to be delivered or
for which comparable financial statements have been filed with or furnished to
the Securities Exchange Commission, after giving pro forma effect to such
transaction and to any other event occurring after such period which required a
pro forma calculation to be made hereunder as if such transaction had occurred
as of the first day of such period, the Net Cash Proceeds of which are
contributed as common equity to the Borrower and used by the Borrower to
permanently repay Term Loans under and as defined in the First Lien Credit
Agreement, repay and permanently reduce commitments in respect of Revolving
Loans under and as defined in the First Lien Credit Agreement or permanently
repay Loans hereunder.

“Permitted Investments” shall mean:

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

 18
 

(b)           investments in commercial paper maturing within 270 days
from the date of acquisition thereof and having, at such date of acquisition,
the highest credit rating obtainable from S&P or from Moody’s;

(c)           investments in certificates of deposit, banker’s
acceptances and time deposits maturing within 270 days from the date of
acquisition thereof issued or guaranteed by or placed with, and money market
deposit accounts issued or offered by, the Administrative Agent or any domestic
office of any commercial bank organized under the laws of the United States of
America or any State thereof that has a combined capital and surplus and
undivided profits of not less than $500,000,000;

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

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

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

“Permitted Refinancing Indebtedness” shall mean
Indebtedness issued or incurred (including by means of the extension or renewal
of existing Indebtedness) to refinance, refund, extend, renew or replace
existing Indebtedness (“Refinanced Indebtedness”); provided that (a) the principal amount of such refinancing,
refunding, extending, renewing or replacing Indebtedness is not greater than
the principal amount of such Refinanced Indebtedness plus the amount of any
premiums or penalties and accrued and unpaid interest paid thereon and
reasonable fees and expenses, in each case associated with such refinancing,
refunding, extension, renewal or replacement, (b) such refinancing, refunding,
extending, renewing or replacing Indebtedness has a final maturity that is no
sooner than, and a weighted average life to maturity that is no shorter than,
such Refinanced Indebtedness, (c) if such Refinanced Indebtedness or any
Guarantees thereof are subordinated to the Obligations, such refinancing,
refunding, extending, renewing or replacing Indebtedness and any Guarantees
thereof remain so subordinated on terms no less favorable to the Lenders, (d) the
obligors in respect of such Refinanced Indebtedness immediately prior to such
refinancing, refunding, extending, renewing or replacing are the only obligors
on such refinancing, refunding extending, renewing or replacing Indebtedness
and (e) unless such refinancing, refunding, extending, renewing or replacing
shall occur within 30 days of the final maturity of such Refinanced
Indebtedness, such refinancing, refunding, extending, renewing or replacing
Indebtedness contains covenants and events of default and is benefited by
Guarantees, if any, which, taken as a whole, are determined in good faith by a
Financial Officer of the Borrower to be no less favorable to the Borrower or
the applicable Subsidiary and the Lenders in any material respect than the covenants
and events of default or Guarantees, if any, in respect of such Refinanced
Indebtedness; provided further, however, that any
Indebtedness issued or incurred to refinance, refund, extend, renew or replace 

 19
 

the Indebtedness of
Jineng that is set forth in Schedule 6.01 or the Foreign Target shall
not be subject to clause (b) or clause (e) above.

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

“Pledged Collateral” shall have the meaning
assigned to such term in the Guarantee and Collateral Agreement.

“Prime Rate” shall mean the rate of interest
per annum announced from time to time by Credit Suisse as its prime rate in
effect at its principal office in New York City; each change in the Prime Rate
shall be effective as of the opening of business on the date such change is
announced as being effective.  The Prime
Rate is a reference rate and does not necessarily represent the lowest or best
rate actually available.

“Proposed Domestic Acquisition” means the
acquisition by the Borrower of Royal Precision, Inc., which acquisition was
consummated prior to the Closing Date.

“Proposed Foreign Acquisition” means the
Borrower’s establishment or expansion of a Permitted Business in a foreign
jurisdiction previously identified in writing to the Administrative Agent or
any province thereof, including by way of the acquisition of the assets of, or
of the Equity Interests of (resulting in a Subsidiary), a Person located in
such jurisdiction or a province thereof, or the making of Capital Expenditures
therein.

“Qualified IPO” shall mean an underwritten
initial public offering of common stock of (and by) Holdings pursuant to an
effective registration statement filed with the Securities and Exchange
Commission in accordance with the Securities Act of 1933, as amended, which
initial public offering results in gross cash proceeds to Holdings of
$50,000,000 or more.

“Real Property” shall mean all Mortgaged
Property and all other real property owned or leased from time to time by
Holdings, the Borrower and the Subsidiaries.

“Receivables Subsidiary” shall mean a
Subsidiary which engages in no activities other than in connection with the
financing of accounts receivable or related assets (including contract rights)
and which is designated by the board of directors of the Borrower (as provided
below) as a Receivables Subsidiary (a) no portion of the Indebtedness or any other
obligations (contingent or otherwise) of which (i) is guaranteed by Holdings,
the Borrower or any of the other Subsidiaries (but excluding customary
representations, warranties, covenants and indemnities entered into in
connection with a Securitization Transaction), (ii) is recourse to or obligates
Holdings, the Borrower or any of the other Subsidiaries in any way other than
pursuant to customary representations, warranties, covenants and indemnities
entered into in connection with a Securitization Transaction or (iii) subjects
any property or asset (including contract rights) of Holdings, the Borrower or
any of the other Subsidiaries (other than accounts receivable and related
assets provided in the definition of “Securitization Transaction”), directly or
indirectly, contingently or otherwise, to the satisfaction thereof, other than
pursuant to customary representations, warranties, covenants and indemnities
entered into in connection with a Securitization Transaction, (b) with which
none of Holdings, the Borrower or any of the other 

 20
 

Subsidiaries has any
material contract, agreement, arrangement or understanding other than on terms
no less favorable to Holdings, the Borrower or such other Subsidiary than those
that might be obtained at the time from persons who are not Affiliates of
Holdings, other than customary fees payable in connection with servicing
accounts receivable and (c) with which none of Holdings, the Borrower or any of
the other Subsidiaries has any obligation to maintain or preserve such Subsidiary’s
financial condition or cause such Subsidiary to achieve certain levels of
operating results.  Any such designation
by the board of directors of the Borrower shall be evidenced to the
Administrative Agent by delivery to the Administrative Agent of a certified
copy of the resolution of the board of directors of the Borrower giving effect
to such designation and a certificate of a Financial Officer of the Borrower
certifying that such designation complied with the foregoing requirements.

“Recovery Event” shall mean any settlement of
or payment in respect of any property or casualty insurance claim or any taking
under power of eminent domain or by condemnation or similar proceeding of or
relating to any property or asset of Holdings, the Borrower or any Subsidiary.

“Reference Date” shall mean March 15, 2004.

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

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

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

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

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

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

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

“Required Lenders” shall mean, at any time,
Lenders having Loans and unused Commitments representing at least a majority of
the sum of all Loans outstanding and unused Commitments at such time.

 21

“Required Prepayment Percentage” shall mean (a)
in the case of any Asset Sale or Recovery Event, 100%; (b) in the case of any
Equity Issuance, if on the date of the applicable prepayment, to the extent
that the Leverage Ratio, after giving effect to any repayment of Loans or loans
under the First Lien Credit Agreement or cash collateralization of letters of
credit under the First Lien Credit Agreement with the applicable Net Cash
Proceeds, is greater than or equal to 4.00 to 1.00, 50%, and to the extent that
the Leverage Ratio, after giving effect to any repayment of Loans or loans
under the First Lien Credit Agreement or cash collateralization of letters of
credit under the First Lien Credit Agreement with the applicable Net Cash
Proceeds, is less than 4.00 to 1.00, 25%; (c) in the case of any issuance or
other incurrence of Indebtedness, 100%; and (d) in the case of any Excess Cash
Flow, if on the last day of the applicable fiscal year, to the extent that the
Leverage Ratio, after giving effect to any repayment of Loans or loans under
the First Lien Credit Agreement or cash collateralization of letters of credit
under the First Lien Credit Agreement with the applicable Net Cash Proceeds, is
(i) greater than or equal to 4.00 to 1.00, 75%, (ii) less than 4.00 to 1.00 but
greater than 3.00 to 1.00, 50%, (iii) less than or equal to 3.00 to 1.00 but greater than 2.00 to 1.00, 25% and (iv)
less than or equal to 2.00 to 1.00, 0%.

“Requirement of Law” shall mean as to any
person, the governing documents of such person, and any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such person or any of its
Real Property or personal property or to which such person or any of its
property of any nature is subject.

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

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

“Restricted Payment” shall mean any dividend or
other distribution (whether in cash, securities or other property) with respect
to any Equity Interests in Holdings, the Borrower or any Subsidiary, or any
payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, defeasance,
retirement, acquisition, cancellation or termination of any Equity Interests in
Holdings, the Borrower or any Subsidiary or any option, warrant or other right
to acquire any such Equity Interests in Holdings, the Borrower or any
Subsidiary.

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

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

“Securitization Transactions” shall mean, with
respect to any person, any transfer by such person of accounts receivable or
interests therein (a) to a trust, partnership, corporation or other entity that
is a Receivables Subsidiary, which transfer is funded in whole or in part,
directly or indirectly, by the incurrence or issuance by the transferee or any
successor transferee of 

 22
 

Indebtedness or
securities that are to receive payments from, or that represent interests in,
the cash flow derived from such accounts receivable or interests, or (b)
directly to one or more investors or other purchasers.  The amount of any Securitization Transaction
shall be deemed at any time to be the aggregate principal or stated amount of
the Indebtedness or securities referred to in the preceding sentence or, if
there shall be no such principal or stated amount, the uncollected amount of
the accounts receivable transferred pursuant to such Securitization Transaction
net of any accounts receivable that have been written off as uncollectible.

“Security Documents” shall mean the Guarantee
and Collateral Agreement, the Intercreditor Agreement, the Mortgages, the
Intellectual Property Security Agreements and each of the other security
agreements, pledges, mortgages, consents and other instruments and documents executed
and delivered pursuant to any of the foregoing or pursuant to Section 5.09
or 5.10.

“Senior Leverage Ratio” shall mean, on the last
day of any fiscal quarter, the ratio of (a) Funded Senior Debt on such date to
(b) Consolidated EBITDA for the period of four consecutive fiscal quarters most
recently ended on and prior to such date, taken as one accounting period.

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

“Sponsor” shall mean, collectively, Gilbert
Global Equity Partners, L.P., Gilbert Global Equity Partners (Bermuda), L.P.
and GGEP/SK Equity Partners, LLC.

“Sponsor Related Parties” shall mean (a) any
(i) controlling stockholder, partner or member, (ii) majority-owned (or more)
subsidiary or (iii) spouse or immediate family member (in the case of an
individual), in each case, of the Sponsor or (b) any trust, corporation,
partnership, limited liability company or other entity, the beneficiaries,
stockholders, partners, members, owners or persons beneficially holding
(directly or through one or more subsidiaries) a greater than 50% controlling
interest of which consist of the Sponsor and/or such persons referred to in the
immediately preceding clause (a).

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

“Stockholders Agreement” shall mean the Stockholders
Agreement dated as of the Reference Date among Holdings and its stockholders
party thereto.

 23
 

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

“Subordinated Notes” shall mean the Borrower’s
8-3/8% Senior Subordinated Notes due 2011, in an aggregate principal amount of
$125,000,000, including any notes issued by the Borrower in full exchange for,
and as contemplated by, the Subordinated Notes with substantially identical
terms as the Subordinated Notes.

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

“Subsidiary” shall mean any subsidiary of the
Borrower.

“Subsidiary Guarantor” shall mean, initially,
each Subsidiary specified on Schedule 1.01(c) and, at any time
thereafter, shall include each other Subsidiary that is not an Excluded Foreign
Subsidiary or a Receivables Subsidiary.

“Synthetic Lease Obligations” shall mean all
monetary obligations of a person under (a) a so-called synthetic, off-balance
sheet or tax retention lease (which is not a true operating lease) or (b) an
agreement for the use or possession of any property (whether real, personal or
mixed) creating obligations which do not appear on the balance sheet of such
person, but which, upon the insolvency or bankruptcy of such person, would be
characterized as Indebtedness of such person (without regard to accounting
treatment).

“Synthetic Purchase Agreement” shall mean any
swap, derivative or other agreement or combination of agreements pursuant to
which Holdings, the Borrower or any Subsidiary is or may become obligated to
make (a) any payment in connection with a purchase by any third party from a
person other than Holdings, the Borrower or any Subsidiary of any Equity
Interest or Restricted Indebtedness or (b) any payment (other than on account of
a permitted purchase by it of any Equity Interest or Restricted Indebtedness)
the amount of which is determined by reference to the price or value at any
time of any Equity Interest or Restricted Indebtedness; provided that no
phantom stock or similar plan providing for payments only to current or former
directors, officers or employees of Holdings, the Borrower or the Subsidiaries
(or to their heirs or estates) shall be deemed to be a Synthetic Purchase
Agreement.

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

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

 24
 

“Tax Sharing Agreement” shall mean the tax
sharing agreement dated as of the Reference Date among Holdings, the Borrower
and the Subsidiaries party thereto.

“Total Debt” shall mean, as of the last day of
any fiscal quarter, the aggregate amount of Indebtedness of the Borrower and
the Subsidiaries outstanding at such time, in the amount that would be
reflected on a balance sheet prepared at such time on a consolidated basis in
accordance with GAAP.

“Transactions” shall mean, collectively, (a)
the execution, delivery and performance by the Loan Parties of the Loan
Documents to which they are a party, (b) the borrowings hereunder and the use
of proceeds thereof, (c) the granting of Liens pursuant to the Security
Documents, (d) the payment of fees and expenses incurred in connection with the
foregoing and (e) any other transactions related to or entered into in
connection with any of the foregoing.

“Type”, when used in respect of any Loan or
Borrowing, shall refer to the Rate by reference to which interest on such Loan
or on the Loans comprising such Borrowing is determined.  For purposes hereof, the term “Rate”
shall include the Adjusted LIBO Rate and the Alternate Base Rate.

“UCC” shall mean the Uniform Commercial Code.

“USA PATRIOT Act” shall mean The Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56 (signed into
law October 26, 2001)).

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

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

SECTION 1.02.      Terms Generally.  The definitions in Section 1.01 shall
apply equally to both the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”,
and words of similar import, shall not be limiting and shall be deemed to be
followed by the phrase “without limitation”. 
The word “will” shall be construed to have the same meaning and effect
as the word “shall”.  The words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision of
this Agreement unless the context shall otherwise require.  All references herein to Articles, Sections,
Exhibits and Schedules shall be deemed references to Articles and Sections of,
and Exhibits and Schedules to, this Agreement unless the context shall
otherwise require.  Except as otherwise
expressly provided herein, (a) any definition of, or reference to, any Loan
Document, including this Agreement, or any other 

 25
 

agreement, instrument or
document in this Agreement shall mean such Loan Document or other agreement,
instrument or document as amended, restated, supplemented or otherwise modified
from time to time (subject to any restrictions on such amendments,
restatements, supplements or modifications set forth herein) and (b) all terms
of an accounting or financial nature shall be construed in accordance with
GAAP, as in effect from time to time; provided, however, that if
the Borrower notifies the Administrative Agent that the Borrower wishes to
amend any covenant in Article VI or any related definition to eliminate
the effect of any change in GAAP occurring after the date of this Agreement on
the operation of such covenant (or if the Administrative Agent notifies the
Borrower that the Required Lenders wish to amend Article VI or any
related definition for such purpose), then the Administrative Agent, the
Lenders and the Borrower shall negotiate in good faith to amend (subject to the
approval of the Required Lenders) such covenant to preserve the original intent
thereof in light of such change; provided that until so amended the
Borrower’s compliance with such covenant shall be determined on the basis of
GAAP in effect immediately before the relevant change in GAAP became effective,
until either such notice is withdrawn or such covenant is amended in a manner
satisfactory to the Borrower and the Required Lenders.

SECTION 1.03.      Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be
classified and referred to by Type (e.g.,
a “Eurodollar Loan”).  Borrowings also
may be classified and referred to by Type (e.g.,
a “Eurodollar Borrowing”).

SECTION 1.04.      Pro Forma Calculations.  All pro forma
calculations permitted or required to be made by the Borrower or any Subsidiary
pursuant to this Agreement shall include only those adjustments that would be
permitted or required by Regulation S-X under the Securities Act of 1933, as
amended, together with those adjustments that (a) have been certified by a
Financial Officer of the Borrower as having been prepared in good faith based
upon reasonable assumptions and (b) are based on reasonably detailed written
assumptions reasonably acceptable to the Administrative Agent.

ARTICLE
II

THE CREDITS

SECTION 2.01.      Commitments.  Subject to the terms and conditions hereof
and relying upon the representations and warranties set forth herein, each
Lender agrees, severally and not jointly, to make a Loan to the Borrower on the
Closing Date in a principal amount not to exceed its Commitment.  Amounts paid or prepaid in respect of Loans
may not be reborrowed.

SECTION
2.02.      Loans.  (a) 
Each Loan shall be made as part of a Borrowing consisting of Loans of
the same Type made by the Lenders ratably in accordance with their Commitments;
provided, however, that the failure of any Lender to make any
Loan required to be made by it shall not in itself relieve any other Lender of
its obligation to lend hereunder (it being understood, however, that no Lender
shall be responsible for the failure of any other Lender to make any Loan
required to be made by such other Lender). 
The Loans comprising any Borrowing shall be in an aggregate principal
amount that is (i) an integral multiple of $500,000 and not less than
$2,000,000 or (ii) equal to the remaining available balance of the applicable
Commitments.

 26
 

(b)           Subject to Sections 2.08 and 2.15,
each Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as
the Borrower may request pursuant to Section 2.03.  Each Lender may at its option make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option
shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement. 
Borrowings of more than one Type may be outstanding at the same time; provided,
however, that the Borrower shall not be entitled to request any
Borrowing that, if made, would result in more than ten Eurodollar Borrowings
outstanding hereunder at any time.  For
purposes of the foregoing, Borrowings having different Interest Periods,
regardless of whether they commence on the same date, shall be considered
separate Borrowings.

(c)           Each
Lender shall make each Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds to such account in New
York City as the Administrative Agent may designate not later than 11:00 a.m.,
New York City time, and the Administrative Agent shall promptly credit the
amounts so received to an account designated by the Borrower in the applicable
Borrowing Request or, if a Borrowing shall not occur on such date because any
condition precedent herein specified shall not have been met, return the
amounts so received to the respective Lenders.

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

SECTION 2.03.      Borrowing Procedure.  In order to request a Borrowing, the Borrower
shall notify the Administrative Agent by telephone (promptly confirmed by fax)
or shall hand deliver or fax to the Administrative Agent a duly completed
Borrowing Request (a) in the case of a Eurodollar Borrowing, not later than
12:00 p.m. (noon), New York City time, three
Business Days before a proposed Borrowing and (b) in the case of an ABR
Borrowing, not later than 12:00 p.m. 
(noon), New York City time, one Business Day before a proposed
Borrowing.  Each Borrowing Request shall
be irrevocable, shall be signed by or on behalf of the Borrower and shall
specify the following information:  (i) whether the Borrowing then being requested is to
be a Eurodollar Borrowing or an ABR Borrowing; (ii)
the date of such Borrowing (which shall be a Business Day); (iii) the number
and location of the account to which funds are to be disbursed 

 27
 

(which shall be an
account that complies with the requirements of Section 2.02(c)); (iv)
the amount of such Borrowing; and (v) if such Borrowing is to be a Eurodollar
Borrowing, the initial Interest Period with respect thereto; provided, however,
that, notwithstanding any contrary specification in any Borrowing Request, each
requested Borrowing shall comply with the requirements set forth in Section
2.02.  If no election as to the Type
of Borrowing is specified in any such notice, then the requested Borrowing
shall be an ABR Borrowing.  If no
Interest Period with respect to any Eurodollar Borrowing is specified in any
such notice, then the Borrower shall be deemed to have selected an Interest
Period of one month’s duration.  The
Administrative Agent shall promptly advise the applicable Lenders of any notice
given in accordance with this Section 2.03 (and the contents thereof),
and of each Lender’s portion of the requested Borrowing.

SECTION 2.04.      Repayment of Loans; Evidence of Debt.  (a) 
The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of each Lender the principal amount of
each Loan of such Lender on the Maturity Date, together with accrued and unpaid
interest on the principal amount to be paid to but excluding the date of
payment.

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

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

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

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

 28
 

SECTION 2.05.      Fees.  (a) 
The Borrower agrees to pay to the Administrative Agent, for its own
account, the fees in the amounts and at the times from time to time agreed to
in writing by the Borrower (or any Affiliate) and the Administrative Agent,
including pursuant to the Engagement Letter.

(b)           All
fees shall be paid on the dates due, in immediately available funds, to the
Administrative Agent for distribution, if and as appropriate, among the
Lenders.  Once paid, none of the fees
shall be refundable under any circumstances.

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

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

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

SECTION 2.07.      Default Interest.  If the Borrower shall default in the payment
of the principal of or interest on any Loan or any other amount becoming due
hereunder or under any other Loan Document, by acceleration or otherwise, the
Borrower shall on demand from time to time pay interest, to the extent
permitted by law, on such defaulted amount to but excluding the date of actual
payment (after as well as before judgment) (a) in the case of overdue
principal, at the rate otherwise applicable to such Loan pursuant to Section
2.06 plus 2.00% per annum and (b) in all other cases, at a rate per
annum (computed on the basis of the actual number of days elapsed over a year
of 365 or 366 days, as the case may be, when determined by reference to the
Prime Rate and over a year of 360 days at all other times) equal to the rate
that would be applicable to an ABR Loan plus 2.00%.

SECTION 2.08.      Alternate Rate of Interest.  In the event, and on each occasion, that
prior to the commencement of any Interest Period for a Eurodollar Borrowing (a)
the Administrative Agent shall have determined that adequate and reasonable
means do not exist for determining the Adjusted LIBO Rate for such Interest
Period or (b) the Administrative Agent is advised by the Required Lenders that
the Adjusted LIBO Rate for such Interest Period will not adequately and fairly
reflect the cost to such Lenders of making or maintaining their Loans included
in such Borrowing for such Interest Period, the Administrative Agent shall, as
soon as practicable thereafter, give written or fax notice of such
determination to the Borrower and the 

 29
 

Lenders.  In the event of any such determination, until
the Administrative Agent shall have advised the Borrower and the Lenders that
the circumstances giving rise to such notice no longer exist, (i) any request
by the Borrower for a Eurodollar Borrowing pursuant to Section 2.03 or
2.10 shall be deemed to be a request for an ABR Borrowing and (ii) any
Interest Period election that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be
ineffective.  Each determination by the
Administrative Agent under this Section 2.08 shall be conclusive absent
manifest error.

SECTION 2.09.      Termination and Reduction of
Commitments.  (a)  Unless previously terminated in accordance
with the terms hereof, the Commitments shall automatically terminate at 5:00
p.m., New York City time, on the Closing Date.

(b)           Upon
at least three Business Days’ prior irrevocable written or fax notice to the
Administrative Agent, the Borrower may at any time in whole permanently
terminate, or from time to time in part permanently reduce, the Commitments; provided,
however, that each partial reduction of the Commitments shall be in an
integral multiple of $500,000 and in a minimum amount of $2,000,000.

(c)           Each
reduction in the Commitments hereunder shall be made ratably among the Lenders
in accordance with their respective Commitments.

SECTION 2.10.      Conversion and Continuation of
Borrowings.  The Borrower shall have the
right at any time upon prior irrevocable notice to the Administrative Agent (a)
not later than 12:00 p.m. (noon), New York City time, one Business Day prior to
conversion, to convert any Eurodollar Borrowing of the Borrower into an ABR
Borrowing, (b) not later than 12:00 p.m. (noon), New York City time, three
Business Days prior to conversion or continuation, to convert any ABR Borrowing
of the Borrower into a Eurodollar Borrowing or to continue any Eurodollar
Borrowing of the Borrower as a Eurodollar Borrowing for an additional Interest
Period and (c) not later than 12:00 p.m. (noon), New
York City time, three Business Days prior to conversion, to convert the
Interest Period with respect to any Eurodollar Borrowing of the Borrower to
another permissible Interest Period, subject in each case to the following:

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

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

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

 30
 

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

(v)           no Borrowing may be converted into or
continued as a Eurodollar Borrowing less than one month prior to the Maturity
Date and no Interest Period may be selected for a Eurodollar Borrowing that
would end after the Maturity Date;

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

(vii)         upon notice to the Borrower from the
Administrative Agent given at the request of the Required Lenders, after the
occurrence and during the continuance of a Default or Event of Default, no
outstanding Loan may be converted into, or continued as, a Eurodollar Loan.

Each notice pursuant to this Section 2.10 shall
be irrevocable and shall refer to this Agreement and specify (i) the identity
and amount of the Borrowing that the Borrower requests be converted or
continued, (ii) whether such Borrowing is to be converted to or continued as a
Eurodollar Borrowing or an ABR Borrowing, (iii) if such notice requests a
conversion, the date of such conversion (which shall be a Business Day) and
(iv) if such Borrowing is to be converted to or continued as a Eurodollar
Borrowing, the Interest Period with respect thereto.  If no Interest Period is specified in any
such notice with respect to any conversion to or continuation as a Eurodollar
Borrowing, the Borrower shall be deemed to have selected an Interest Period of
one month’s duration.  The Administrative
Agent shall advise the Lenders of any notice given pursuant to this Section
2.10 and of each Lender’s portion of any converted or continued
Borrowing.  If the Borrower shall not
have given notice in accordance with this Section 2.10 to continue any
Borrowing into a subsequent Interest Period (and shall not otherwise have given
notice in accordance with this Section 2.10 to convert such Borrowing),
such Borrowing shall, at the end of the Interest Period applicable thereto
(unless repaid pursuant to the terms hereof), automatically be converted or
continued into an ABR Borrowing.

SECTION 2.11.      [Intentionally Omitted].

SECTION 2.12.      Prepayment.  (a) 
Subject to any restrictions with respect thereto set forth in the First
Lien Credit Agreement or the Intercreditor Agreement, the Borrower shall have
the right at any time and from time to time to prepay any Borrowing, in whole
or in part, upon at least three Business Days’ prior written or fax notice (or
telephone notice promptly confirmed by written or fax notice) in the case of
Eurodollar Loans, or written or fax notice (or telephone notice promptly
confirmed by written or fax notice) at least one Business Day prior to the date
of prepayment in the case of ABR Loans, to the Administrative Agent before
12:00 p.m. (noon), New York City time; provided, however, that
each partial prepayment shall be in an amount that is an integral multiple of
$500,000 and not less than $500,000.

 31
 

(b)           [Intentionally Omitted].

(c)           Each
notice of prepayment shall specify the prepayment date and the principal amount
of each Borrowing (or portion thereof) to be prepaid, shall be irrevocable and
shall commit the Borrower to prepay such Borrowing by the amount stated therein
on the date stated therein.  All
prepayments under this Section 2.12 shall be subject to Section 2.16,
but otherwise without premium or penalty (except as provided in Section
2.22).  All prepayments under this Section
2.12 shall be accompanied by accrued and unpaid interest on the principal
amount to be prepaid to but excluding the date of payment.

SECTION 2.13.      Mandatory Prepayments.  (a) 
[Intentionally Omitted].

(b)           Not
later than the sixth Business Day following the completion of any Asset Sale or
the occurrence of any Recovery Event (subject in each case to all applicable
reinvestment and repayment rights to the extent set forth in the definition of “Net
Cash Proceeds”), the Borrower shall, to the extent it is not required to
apply such Net Cash Proceeds to prepay or cash collateralize obligations under
the First Lien Credit Agreement, apply the Required Prepayment Percentage of
the Net Cash Proceeds received with respect thereto to prepay outstanding Loans
in accordance with Section 2.13(f) and (g).

(c)           In
the event and on each occasion that an Equity Issuance occurs, the Borrower
shall, substantially simultaneously with (and in any event not later than the
sixth Business Day next following) the occurrence of such Equity Issuance, to
the extent it is not required to apply such Net Cash Proceeds to prepay or cash
collateralize obligations under the First Lien Credit Agreement, apply the
Required Prepayment Percentage of the Net Cash Proceeds therefrom to prepay
outstanding Loans in accordance with Section 2.13(f) and (g).

(d)           In
the event that any Loan Party or any subsidiary of a Loan Party shall receive
Net Cash Proceeds from the issuance or other incurrence of Indebtedness of any
Loan Party or any subsidiary of a Loan Party (other than Indebtedness permitted
pursuant to Section 6.01 (other than pursuant to clause (A)
of the proviso in Section 6.01(h) or Section 6.01(k))), the
Borrower shall, substantially simultaneously with (and in any event not later
than the sixth Business Day next following) the receipt of such Net Cash
Proceeds by such Loan Party or such subsidiary, to the extent it is not
required to apply such Net Cash Proceeds to prepay or cash collateralize
obligations under the First Lien Credit Agreement, apply an amount equal to the
Required Prepayment Percentage of such Net Cash Proceeds to prepay outstanding
Loans in accordance with Section 2.13(f) and (g).

(e)           No
later than the earlier of (x) 95 days after the end of each fiscal year of the
Borrower and (y) the date on which the financial statements with respect to
such period are delivered pursuant to Section 5.04(a), the Borrower
shall, to the extent it is not required to apply such Excess Cash Flow to
prepay or cash collateralize obligations under the First Lien Credit Agreement,
prepay outstanding Loans in accordance with Section 2.13(f) and (g),
in an aggregate principal amount equal to the Required Prepayment Percentage of
Excess Cash Flow for the fiscal year then ended.

 32
 

(f)            Mandatory
prepayments of outstanding Loans under this Agreement shall be applied to
prepay outstanding Loans (and the corresponding accrued and unpaid interest on
the principal amount of Loans so prepaid), subject to the provisions in this
paragraph below and in paragraph (g) below. 
Notwithstanding anything to the contrary, any Lender may elect, by
notice to the Administrative Agent at or prior to the time and in the manner
specified by the Administrative Agent, prior to any prepayment of Loans
required to be made by the Borrower pursuant to this Section 2.13, to decline
all of any prepayment of its Loans pursuant to clauses (b), (c), (d) or (e) of
this Section 2.13, in which case the aggregate amount of the prepayment that
would have been applied to prepay such Loans but was so declined shall be
re-offered to those Lenders under this Agreement who have initially accepted
such prepayment (such re-offer to be made to each Lender based on the
percentage which such Lender’s Loans represents of the aggregate Loans of all
such Lenders who have initially accepted such prepayment).  In the event of such a re-offer, the relevant
Lenders may elect, by notice to the Administrative Agent at or prior to the
time and in the manner specified by the Administrative Agent, to decline all of
the amount of such prepayment that is re-offered to them, in which case the
aggregate amount of the prepayment that would have been applied to prepay such
Loans pursuant to such re-offer but was so declined shall be retained by the
Borrower to be used for any other purpose not prohibited by this Agreement.

(g)           In
applying mandatory prepayments of Loans in accordance with paragraph (f) above,
such mandatory prepayments shall be applied on a pro rata basis to the then
outstanding Loans being prepaid irrespective of whether such outstanding Loans
are ABR Loans or Eurodollar Loans; provided that if no Lenders exercise
the right to waive a given mandatory prepayment pursuant to paragraph (f)
above, then with respect to such mandatory prepayment, the amount of such
mandatory prepayment to be applied to Loans shall be applied first to Loans
that are ABR Loans to the full extent thereof before application to Loans that
are Eurodollar Loans in a manner that minimizes the amount of any payments
required to be made by the Borrower pursuant to Section 2.16.

(h)           The
Borrower shall deliver to the Administrative Agent, at the time of each
prepayment required under this Section 2.13, (i) a certificate signed by
a Financial Officer of the Borrower setting forth in reasonable detail the
calculation of the amount and date of such prepayment and (ii) to the extent
practicable, at least three days prior written notice of such prepayment.  Each notice of prepayment shall specify the
prepayment date, the Type of each Loan being prepaid and the principal amount
of each Loan (or portion thereof) to be prepaid.  All prepayments of Borrowings pursuant to
this Section 2.13 shall be subject to Section 2.16, but shall
otherwise be without premium or penalty.

(i)            Notwithstanding
anything in this Section 2.13 to the contrary, until the Discharge of
First Lien Obligations solely in respect of the Term Loan Facility (under and
as defined in the First Lien Credit Agreement) shall have occurred, no
mandatory prepayments of outstanding Loans that would otherwise be required
under this Section 2.13 shall be required to be made except with respect
to the portion (if any) of the proceeds of the event giving rise to such
mandatory prepayments as shall not be required to prepay the Term Loans under
and as defined in the First Lien Credit Agreement as a result of an amendment,
waiver or other modification with respect to the provisions of Section 2.13
of the First Lien Credit Agreement in accordance with the provisions of the
First Lien Credit Agreement.

 33
 

SECTION 2.14.      Reserve
Requirements; Change in Circumstances. 
(a)  Notwithstanding any other
provision of this Agreement, if any Change in Law shall:

(i)            impose, modify or deem applicable
any reserve, special deposit or similar requirement against assets of, deposits
with or for the account of, or credit extended by, any Lender or the
Administrative Agent (except any such reserve requirement which is reflected in
the Adjusted LIBO Rate) or

(ii)           impose on any Lender or the
Administrative Agent or the London interbank market any other condition
affecting this Agreement or Eurodollar Loans made by such Lender,

and the result of any of the foregoing shall be to
increase the cost to such Lender of maintaining any Eurodollar Loan or to
reduce the amount of any sum received or receivable by such Lender hereunder
(whether of principal, interest or otherwise) by an amount deemed by such
Lender or the Administrative Agent to be material, then the Borrower will pay
to such Lender or the Administrative Agent, as the case may be, upon demand
such additional amount or amounts as will compensate such Lender for such
additional costs incurred or reduction suffered.

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

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

(d)           Failure
or delay on the part of any Lender or the Administrative Agent to demand
compensation pursuant to this Section shall not constitute a waiver of such
Lender’s or the Administrative Agent’s right to demand such compensation; provided
that the Borrower shall not be under any obligation to compensate any Lender or
the Administrative Agent under paragraph (a) or (b) above for
increased costs or reductions with respect to any period prior to the date that
is 270 days prior to such request if such Lender or the Administrative Agent
knew or could reasonably have been expected to know of the circumstances giving
rise to such increased costs 

 34
 

or reductions and of the fact that such circumstances would result in a
claim for increased compensation by reason of such increased costs or
reductions; provided further that the foregoing limitation shall
not apply to any increased costs or reductions arising out of the retroactive
application of any Change in Law within such 270-day period.  The protection of this Section shall be
available to each Lender and the Administrative Agent regardless of any
possible contention of the invalidity or inapplicability of the Change in Law
that shall have occurred or been imposed.

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

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

(ii)           such Lender may require that all
outstanding Eurodollar Loans maintained by it be converted to ABR Loans, in
which event all such Eurodollar Loans shall be automatically converted to ABR
Loans as of the effective date of such notice as provided in paragraph (b)
below.

In the event any Lender shall exercise its rights
under (i) or (ii) above, all payments and prepayments of
principal that would otherwise have been applied to repay the converted Eurodollar
Loans of such Lender shall instead be applied to repay the ABR Loans resulting
from the conversion of such Eurodollar Loans. 
Any such conversion of a Eurodollar Loan under (i) above shall be
subject to Section 2.16.

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

SECTION 2.16.      Indemnity.  The Borrower shall indemnify each Lender
against any loss (other than (x) any loss of margin over funding cost or (y)
anticipated profit) or expense that such Lender may sustain or incur as a consequence
of (a) any event, other than a default by such Lender in the performance of its
obligations hereunder, which results in (i) such Lender receiving or being
deemed to receive any amount on account of the principal of any Eurodollar Loan
prior to the end of the Interest Period in effect therefor, (ii) the conversion
of any Eurodollar Loan to an ABR Loan, or the conversion of the Interest Period
with respect to any Eurodollar Loan, in each case other than on the last day of
the Interest Period in effect therefor or 

 35
 

(iii)
any Eurodollar Loan to be made by such Lender (including any Eurodollar Loan to
be made pursuant to a conversion or continuation under Section 2.10) not
being made after notice of such Loan shall have been given by the Borrower
hereunder (any of the events referred to in this clause (a) being called
a “Breakage Event”) or (b) any default in the making of any payment or
prepayment required to be made hereunder. 
In the case of any Breakage Event, such loss shall include an amount
equal to the excess, as reasonably determined by such Lender, of (i) its cost
of obtaining funds for the Eurodollar Loan that is the subject of such Breakage
Event for the period from the date of such Breakage Event to the last day of
the Interest Period in effect (or that would have been in effect) for such Loan
over (ii) the amount of interest likely to be realized by such Lender in
redeploying the funds released or not utilized by reason of such Breakage Event
for such period.  A certificate of any
Lender setting forth any amount or amounts which such Lender is entitled to
receive pursuant to this Section 2.16 shall be delivered to the Borrower
and shall be conclusive absent manifest error.

SECTION 2.17.      Pro Rata Treatment.  Except as required under Section 2.15,
each Borrowing, each payment or prepayment of principal of any Borrowing, each
payment of interest on the Loans, each reduction of the Commitments and each
conversion of any Borrowing to or continuation of any Borrowing as a Borrowing
of any Type shall be allocated pro rata among
the Lenders in accordance with their respective Commitments (or, if such
Commitments shall have expired or been terminated, in accordance with the
respective principal amounts of their outstanding Loans).  Each Lender agrees that in computing such
Lender’s portion of any Borrowing to be made hereunder, the Administrative
Agent may, in its discretion, round each Lender’s percentage of such Borrowing
to the next higher or lower whole dollar amount.

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

 36
 

SECTION 2.19.      Payments.  (a) 
The Borrower shall make each payment (including principal of or interest
on any Borrowing or any fees or other amounts) hereunder and under any other
Loan Document not later than 12:00 (noon), New York City time, on the date when
due in immediately available dollars, without setoff, defense or
counterclaim.  Each such payment shall be
made to the Administrative Agent at its offices at Eleven Madison Avenue,
New York, NY 10010.  All
payments hereunder and under each other Loan Document shall be made in
dollars.  The Administrative Agent shall
distribute such payments to the Lenders promptly upon receipt in like funds as
received.

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

SECTION
2.20.      Taxes.  (a) 
Any and all payments by or on account of any obligation of the Borrower
or any other Loan Party hereunder or under any other Loan Document shall be
made free and clear of and without deduction for any Indemnified Taxes or Other
Taxes; provided that if any Indemnified Taxes or Other Taxes are
required to be withheld or deducted from such payments, then (i) the sum
payable by the Borrower shall be increased as necessary so that after all
required deductions or withholding (including deductions or withholdings
applicable to additional sums payable under this Section) the Administrative
Agent or such 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 or
such other Loan Party shall make (or cause to be made) such deductions and
(iii) the Borrower or such other Loan Party shall pay (or cause to be paid) the
full amount deducted to the relevant Governmental Authority in accordance with
applicable law.  In addition, the
Borrower or any other Loan Party hereunder shall pay (or cause to be paid) any
Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

(b)           The
Borrower shall jointly and severally indemnify the Administrative Agent and
each Lender, within 10 days after written demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes paid by the Administrative Agent or
such Lender, as the case may be, or any of their respective Affiliates, on or
with respect to any payment by or on account of any obligation of the Borrower
or any Loan Party hereunder or under any other Loan Document (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) and any penalties, interest and expenses
arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority; provided that if the Borrower
determines in good faith that a reasonable basis exists for contesting any
Indemnified Taxes or Other Taxes for which an increase in the amount of such
payment is made or for which indemnification has been demanded pursuant to this
Section 2.20, such Lender or the Administrative Agent, as applicable,
shall reasonably cooperate with the Borrower in challenging such Indemnified
Taxes or Other Taxes at the Borrower’s expense if so requested by the Borrower
in writing to the extent that such cooperation is not, in the Lender’s or the
Administrative Agent’s reasonable discretion, unduly burdensome or
disadvantageous.  A 

 37
 

certificate as to the amount of such payment or liability delivered to
the Borrower by a Lender, or by the Administrative Agent on its behalf or on
behalf of a Lender, shall be conclusive absent manifest error.

(c)           As
soon as practicable after any payment of Indemnified Taxes or Other Taxes
pursuant to Section 2.20(a), and in any event within 30 days of any such
payment being due, the Borrower shall deliver (or cause to be delivered) to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

(d)           Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent) such properly completed and executed documentation
prescribed by applicable law or reasonably requested by the Borrower as will
permit such payments to be made without withholding or at a reduced rate; provided
that such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s judgment such completion, execution or
delivery would not materially prejudice the legal position of such Lender.  In addition, each Foreign Lender shall (i)
furnish on or before it becomes a party to the Agreement either (a) two
accurate and complete originally executed U.S. Internal Revenue Service Form
W-8BEN (or successor form) or (b) an accurate and complete U.S.  Internal Revenue Service Form W-8ECI (or
successor form), certifying, in either case, to such Foreign Lender’s legal
entitlement to an exemption or reduction from U.S. federal withholding tax with
respect to all interest payments hereunder, and (ii) provide a new Form W8BEN
(or successor form) or Form W-8ECI (or successor form) upon the expiration or
obsolescence of any previously delivered form to reconfirm any complete
exemption from, or any entitlement to a reduction in, U.S. federal withholding
tax with respect to any interest payment hereunder; provided that any
Foreign Lender that is not a “bank” within the meaning of Section 881(c)(3)(A)
of the Code and is relying on the so-called “portfolio interest exemption”
shall also furnish a “Non-Bank Certificate” in the form of Exhibit J
together with a Form W8BEN. 
Notwithstanding any other provision of this paragraph, a Foreign Lender
shall not be required to deliver any form pursuant to this paragraph that such
Foreign Lender is not legally able to deliver.

(e)           Any
Lender that is a United States person, as defined in Section 7701(a)(30) of the
Internal Revenue Code, and is not an exempt recipient within the meaning of
Treasury Regulations Section 1.6049-4(c) shall deliver to the Borrower (with a
copy to the Administrative Agent) two accurate and complete original signed
copies of Internal Revenue Service Form W-9, or any successor form that such
person is entitled to provide at such time in order to comply with United
States back-up withholding requirements.

(f)            Without
prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in this Section 2.20
shall survive the payment in full of all amounts due hereunder.

 38

(g)           In
the event that any Lender or the Administrative Agent receives a refund in
respect of Indemnified Taxes or Other Taxes as to which it has been paid
additional amounts by the Borrower pursuant to clause (a) of this
Section or indemnified by the Borrower pursuant to clause (b) of
this Section and such Lender or the Administrative Agent, as applicable,
reasonably determines that such refund is attributable to such additional
amounts or indemnification, then such Lender or the Administrative Agent, as applicable,
shall promptly notify the Administrative Agent and the Borrower and shall
within 30 Business Days after the refund is actually received remit to the
Borrower an amount as such Lender or the Administrative Agent, as applicable,
determines to be the proportion of the refunded amount as will leave such
Lender or the Administrative Agent, as applicable, after such remittance, in no
better or worse position than it would have been if the Indemnified Taxes or
Other Taxes had not been imposed and the corresponding additional amounts or
indemnification payment not been made. 
Nothing in this Section 2.20(g) shall oblige any Lender or the
Administrative Agent to disclose to the Borrower or any other person any
information regarding its tax affairs or tax computations or interfere with the
right of any Lender or the Administrative Agent to arrange its tax affairs in
whatever manner it thinks fit and, in particular, no Lender or the
Administrative Agent shall be under any obligation to claim relief from its corporate
profits or similar tax liability in credits or deductions available to it and,
if it does claim, the extent, order and manner in which it does so shall be at
its absolute discretion.

SECTION 2.21.      Assignment of Commitments Under Certain
Circumstances; Duty to Mitigate. 
(a)  In the event (i) any Lender
delivers a certificate requesting compensation pursuant to Section 2.14,
(ii) any Lender delivers a notice described in Section 2.15, (iii) the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority on account of any Lender pursuant to Section 2.20
or (iv) any Lender does not consent to a proposed amendment, modification or
waiver of this Agreement requested by the Borrower which requires the consent
of all of the Lenders or all of the Lenders to become effective (and which is
approved by at least the Required Lenders), the Borrower may, at its sole
expense and effort (including with respect to the processing and recordation
fee referred to in Section 9.04(b)), upon notice to such Lender and
the Administrative Agent, require such Lender to transfer and assign, without
recourse (in accordance with and subject to the restrictions contained in Section
9.04), all of its interests, rights and obligations under this Agreement to
an assignee that shall assume such assigned obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that (x)
such assignment shall not conflict with any law, rule or regulation or order of
any court or other Governmental Authority having jurisdiction, (y) solely with
respect to replacements of Lenders pursuant to clauses (i), (ii)
or (iii) of this Section, the Borrower shall have received the prior
written consent of the Administrative Agent, which consent shall not
unreasonably be withheld or delayed, and (z) the Borrower or such assignee
shall have paid to the affected Lender in immediately available funds an amount
equal to the sum of the principal of and interest accrued to the date of such
payment on the outstanding Loans of such Lender plus all fees and other amounts
accrued for the account of such Lender hereunder (including any amounts under Section 2.14,
Section 2.16 and, solely with respect to the replacement of Lenders
pursuant to clause (iv) of this Section, Section 2.22); provided
further that, if prior to any such transfer and assignment the
circumstances or event that resulted in such Lender’s claim for compensation
under Section 2.14 or notice under Section 2.15 or the amounts
paid pursuant to Section 2.20, as the case may be, cease to cause such
Lender to suffer increased costs or reductions in amounts received or
receivable or reduction in return on capital, or cease to have 

 39
 

the consequences
specified in Section 2.15, or cease to result in amounts being payable
under Section 2.20, as the case may be (including as a result of any
action taken by such Lender pursuant to paragraph (b) below), or if such
Lender shall waive its right to claim further compensation under Section
2.14 in respect of such circumstances or event or shall withdraw its notice
under Section 2.15 or shall waive its right to further payments under Section
2.20 in respect of such circumstances or event, as the case may be, then
such Lender shall not thereafter be required to make any such transfer and
assignment hereunder.  In connection with
any such replacement, if the replaced Lender does not execute and deliver to
the Administrative Agent a duly completed Assignment and Acceptance reflecting
such replacement within five Business Days of the date on which the replacement
Lender executes and delivers such Assignment and Acceptance to the replaced
Lender, then such replaced Lender shall be deemed to have executed and
delivered such Assignment and Acceptance.

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

SECTION 2.22.      Prepayment Premium.  (a)  In
the event that (i) the Loans are prepaid in whole or in part pursuant to
Section 2.12(a) on or prior to the second anniversary of the Closing Date or
(ii) the Loans of a Lender are prepaid on or prior to the second anniversary of
the Closing Date as a result of the mandatory assignment of such Loans in the
circumstances described in Section 2.21(a)(iv), the Borrower shall pay
to the applicable Lenders a prepayment premium of 2% on the principal amount so
prepaid.

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

Each of Holdings and the Borrower jointly and
severally represents and warrants to the Arranger, the Administrative Agent,
the Collateral Agent and each of the Lenders that:

SECTION 3.01.      Organization; Powers.  Holdings, the Borrower and each of the
Subsidiaries (a) is duly organized or formed, validly existing and (if
applicable) in good standing under the laws of the jurisdiction of its
organization or formation, (b) has all requisite power and authority to own and
operate its property and assets, to lease the property it operates as lessee
and to carry on its business as now conducted and as proposed to be conducted,
(c) is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required, 

 40
 

except where the failure
so to qualify, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect and (d) has the power and
authority to execute, deliver and perform its obligations under this Agreement,
each of the other Loan Documents to which it is or will be a party and each
other agreement or instrument contemplated hereby or thereby to which it is or
will be a party, including, in the case of the Borrower, to borrow hereunder,
in the case of each Loan Party, to grant the Liens contemplated to be granted
by it under the Security Documents and, in the case of each Subsidiary
Guarantor, to Guarantee the Obligations as contemplated by the Guarantee and
Collateral Agreement.

SECTION 3.02.      Authorization; No Conflicts.  The Transactions (a) have been duly
authorized by all requisite corporate, partnership or limited liability company
and, if required, stockholder, partner or member action and (b) will not (i)
violate (A) any provision of law, statute, rule or regulation, or of the
certificate or articles of incorporation or other constitutive documents or
by-laws of Holdings, the Borrower or any Subsidiary, (B) any order of any
Governmental Authority or arbitrator or (C) any provision of any indenture,
material agreement or other material instrument to which Holdings, the Borrower
or any Subsidiary is a party or by which any of them or any of their property
is or may be bound, (ii) be in conflict with, result in a breach of or
constitute (alone or with notice or lapse of time or both) a default under, or
give rise to any right to accelerate or to require the prepayment, repurchase
or redemption of any obligation under any such indenture, agreement or other
instrument or (iii) result in the creation or imposition of any Lien upon or
with respect to any property or assets now owned or hereafter acquired by
Holdings, the Borrower or any Subsidiary (other than Liens created under the
Security Documents and under the First Lien Loan Documents).

SECTION 3.03.      Enforceability.  This Agreement has been duly executed and
delivered by each of Holdings and the Borrower and constitutes, and each other
Loan Document when executed and delivered by each Loan Party party thereto will
constitute, a legal, valid and binding obligation of such Loan Party
enforceable against such Loan Party in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

SECTION 3.04.      Governmental Approvals.  No action, consent or approval of,
registration or filing with, Permit from, notice to, or any other action by,
any Governmental Authority is or will be required in connection with the Transactions,
except for (a) the filing of UCC financing statements and filings with the
United States Patent and Trademark Office and the United States Copyright
Office, (b) recordation of the Mortgages, (c) such as have been made or
obtained and are in full force and effect and (d) such the failure of which to
make or obtain, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

SECTION 3.05.      Financial Statements.  (a) 
The Borrower has heretofore furnished to the Lenders its consolidated
balance sheets and statements of income, stockholder’s equity and cash flows as
of and for the fiscal years ended December 31, 2005 audited by and accompanied
by the opinion of KPMG LLP, independent public accountants.  Such financial statements present fairly in
all material respects the financial condition and results of operations and
cash flows of the Borrower and its consolidated Subsidiaries as of such dates
and for such periods.  

 41
 

Such balance sheets and
the notes thereto disclose all material liabilities, direct or contingent, of
the Borrower and its consolidated Subsidiaries as of the dates thereof.  Such financial statements were prepared in
accordance with GAAP applied on a consistent basis.

(b)           [RESERVED]

SECTION 3.06.      No Material Adverse Change.  No event, change or condition has occurred
since December 31, 2005 that has caused, or could reasonably be expected to
cause, a Material Adverse Effect, other than any event, change or condition
that has been specifically disclosed in the Borrower’s public filings with the
Securities and Exchange Commission after such date and on or prior to November
15, 2006.

SECTION 3.07.      Title to Properties; Possession Under
Leases.  (a)  Each of Holdings, the Borrower and the Subsidiaries
has good and marketable title to, or valid leasehold interests in, all its
material properties and assets (including material Real Property), except for
(i) defects in title that, in the aggregate, are not substantial in amount and
do not materially detract from the value of the property subject thereto or
materially interfere with its ability to conduct its business as currently
conducted or to utilize such properties and assets for their intended purposes,
(ii) Liens expressly permitted by Section 6.02 and (iii) leasehold
interests that terminate in the ordinary course of business in accordance with
their terms and not on account of a tenant default.  Each material parcel of Real Property is free
from material structural defects and all building systems contained therein are
in good working order and condition, ordinary wear and tear excepted, suitable
for the purposes for which they are currently being used.

(b)           Each
of Holdings, the Borrower and the Subsidiaries, and, to the knowledge of the
Borrower, each other party thereto, has complied with all obligations under all
leases to which it is a party and all such leases are legal, valid, binding and
in full force and effect and are enforceable in accordance with their terms,
except, in each case, for such noncompliance or such failures to be in full
force and effect that could not reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect.  Each of Holdings, the Borrower and the
Subsidiaries enjoys peaceful and undisturbed possession under all such material
leases.  The Borrower has delivered to
the Administrative Agent true, complete and correct copies of all leases
(whether as landlord or tenant) of Real Property existing as of the Closing
Date the Borrower has promptly after execution delivered to the Administrative
Agent true, complete and correct copies of all leases (whether as landlord or
tenant) of Mortgaged Properties executed at any time after the Closing Date.

(c)           The
Borrower has obtained all material Permits, licenses, variances and
certificates (including certificates of occupancy) required by applicable law
to be obtained and necessary to the use and operation of each parcel of Real
Property, except where the failure to have such Permit, license, certificate or
variance could not reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.

SECTION 3.08.      Subsidiaries.  Schedule 3.08 sets forth as of the
Closing Date a list of all Subsidiaries, including each Subsidiary’s exact
legal name (as reflected in such Subsidiary’s certificate or articles of
incorporation or other constitutive documents) and jurisdiction of
incorporation or formation and the percentage ownership interest of Holdings or
the Borrower 

 42
 

(direct or indirect)
therein, and identifies each Subsidiary that is Loan Party.  The shares of capital stock or other Equity
Interests so indicated on Schedule 3.08 are (where applicable) fully
paid and non-assessable and are owned by Holdings or the Borrower, directly or
indirectly, free and clear of all Liens (other than Liens expressly permitted
by clauses (b), (d) or (s) of Section 6.02).

SECTION 3.09.      Litigation; Compliance with Laws.  (a) 
There are no actions, suits or proceedings at law or in equity or by or before
any arbitrator or Governmental Authority now pending or, to the knowledge of
Holdings or the Borrower, threatened against or affecting Holdings, the
Borrower or any Subsidiary or any business, property or rights of any such
person (i) that involve any Loan Document or the
Transactions or (ii) except as set forth on Schedule 3.09, as to which there is
a reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.

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

(c)           None
of Holdings, the Borrower or any of the Subsidiaries or any of their respective
material properties or assets is in violation of, nor will the continued
operation of their material properties and assets as currently conducted
violate, any law, rule or regulation (including any zoning, building,
Environmental Law, ordinance, code or approval or any building permits) or any
restrictions of record or agreements affecting the Mortgaged Property, or is in
default with respect to any judgment, writ, injunction, decree or order of any
Governmental Authority, where, in each case in this paragraph (c), such
violation or default, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect.

SECTION 3.10.      Agreements.  None of Holdings, the Borrower or any of the
Subsidiaries is in default in any manner under any provision of any agreement
or instrument, or subject to any corporate restriction, that, individually or
in the aggregate, has resulted or could reasonably be expected to result in a
Material Adverse Effect.

SECTION 3.11.      Federal Reserve Regulations.  (a) 
None of Holdings, the Borrower or any of the Subsidiaries is engaged
principally, or as one of its important activities, in the business of
extending credit for the purpose of buying or carrying Margin Stock.

(b)           None
of the transactions contemplated by this Agreement (including the making of the
Loans and the use of the proceeds thereof, including any refinancing or
retirement of Indebtedness with the proceeds thereof) will violate or result in
the violation of any of the provisions of the Regulations of the Board,
including Regulation T, U or X.  If
requested by any Lender or the Administrative Agent, the Borrower will furnish
to the Administrative Agent and each Lender a statement to the foregoing effect
in conformity with the requirements of FR Form G-3 or FR Form U-1 referred to
in Regulation U.

 43
 

SECTION 3.12.      Investment
Company Act.  None of Holdings, the
Borrower or any of the Subsidiaries is an “investment company” as defined in,
or subject to regulation under, the Investment Company Act of 1940, as amended.

SECTION 3.13.      Use of Proceeds.  The Borrower will use the proceeds of the
Loans first to repay $24,685.803.78 of Term Loans under as and as defined in
the First Lien Credit Agreement and to pay accrued and unpaid interest
thereon.  Any remaining proceeds of the
Loans shall be used solely (a) to finance the Proposed Foreign Acquisition, (b)
for general corporate purposes relating to new product launches and strategic
business initiatives of the Borrower and (c) to pay fees and expenses related
thereto and to the Loan Documents.

SECTION 3.14.      Tax Returns.  Each of Holdings, the Borrower and each of
the Subsidiaries has timely filed or timely caused to be filed all Federal,
state, material local and foreign tax returns or materials required to have
been filed by it and all such tax returns are correct and complete in all
material respects.  Each of Holdings, the
Borrower and each of the Subsidiaries has timely paid or timely caused to be
paid all Taxes due and payable by it and all assessments received by it, except
Taxes that are being contested in good faith by appropriate proceedings and for
which Holdings, the Borrower or such Subsidiary, as applicable, shall have set
aside on its books adequate reserves in accordance with GAAP.  Each of Holdings, the Borrower and each of
the Subsidiaries has made adequate provision in accordance with GAAP for all
Taxes not yet due and payable.  None of
the Holdings, the Borrower or any of the Subsidiaries intends to treat the
Loans or any of the transactions contemplated by any Loan Document as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4).

SECTION 3.15.      No Material Misstatements.  Each of Holdings and the Borrower has
disclosed to the Arranger, the Administrative Agent and the Lenders all
agreements, instruments and corporate or other restrictions to which Holdings,
the Borrower or any of the Subsidiaries is subject, and all other matters known
to any of them, that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect.  None of any factual information, report, financial
statement, exhibit or schedule furnished by or on behalf of Holdings, the
Borrower or any Subsidiary to the Arranger, the Administrative Agent or any
Lender for use in connection with the transactions contemplated by the Loan
Documents or in connection with the negotiation of any Loan Document or
included therein or delivered pursuant thereto, when taken as a whole,
contained, contains or will contain (in each case as of the date of its
delivery to the Arranger, the Administrative Agent or any Lender) any material
misstatement of fact or omitted, omits or will omit to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were, are or will be made, not misleading; provided
that to the extent any such information, report, financial statement, exhibit
or schedule was based upon or constitutes a forecast or projection, each of
Holdings and the Borrower represents only that it acted in good faith and
utilized assumptions believed by management of Holdings and the Borrower to be
reasonable at the time made in the preparation of such information, report,
financial statement, exhibit or schedule (it being understood by the Lenders
and the Agents that such financial information as it relates to future events
is not to be viewed as fact and that actual results during the period or
periods covered by such financial information may differ from the projected
results set forth therein).

 44
 

SECTION 3.16.      Employee Benefit Plans.  Each of the Borrower and each of its ERISA
Affiliates is in compliance in all material respects with the applicable
provisions of ERISA and the Tax Code and the regulations and published
interpretations thereunder.  No ERISA
Event has occurred or is reasonably expected to occur that, when taken together
with all other such ERISA Events, could reasonably be expected to result in a
Material Adverse Effect.  The present
value of all benefit liabilities under each Benefit Plan (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of December 31, 2005, exceed by more than $4,600,000 the
fair market value of the assets of such Benefit Plan, and the present value of
all benefit liabilities of all underfunded Benefit Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of December 31, 2005, exceed by more than $4,600,000 the
fair market value of the assets of all such underfunded Benefit Plans.

SECTION 3.17.      Environmental Matters.  Except with respect to matters that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, none of Holdings, the Borrower or any of the
Subsidiaries:

(a)           has failed to comply with any
Environmental Law or to take, in a timely manner, all actions necessary to
obtain, maintain, renew and comply with any Environmental Permit, and all such
Environmental Permits are in full force and effect and not subject to any
administrative or judicial appeal;

(b)           has become a party to any
governmental, administrative or judicial proceeding or possesses knowledge of
any such proceeding that has been threatened under Environmental Law;

(c)           has received written notice of,
become subject to, or is aware of any facts or circumstances that could form
the basis for, any Environmental Liability other than those which have been
fully and finally resolved and for which no obligations remain outstanding;

(d)           possesses knowledge that any
Mortgaged Property (A) is subject to any Lien, restriction on ownership,
occupancy, use or transferability imposed pursuant to Environmental Law or (B)
contains or previously contained Hazardous Materials of a form or type or in a
quantity or location that could reasonably be expected to result in any
Environmental Liability;

(e)           possess knowledge that there has been
a Release or threat of Release of Hazardous Materials at or from the Mortgaged
Properties (or from any facilities or other properties formerly owned, leased
or operated by Holdings, the Borrower or any of the Subsidiaries) in violation
of, or in amounts or in a manner that could give rise to liability under, any
Environmental Law;

(f)            has generated, treated, stored,
transported, or Released Hazardous Materials from the Mortgaged Properties (or
from any facilities or other properties formerly owned, leased or operated by
Holdings, the Borrower or any of the Subsidiaries) 

 45
 

in violation
of, or in a manner or to a location that could give rise to liability under,
any Environmental Law;

(g)           is aware of any facts, circumstances,
conditions or occurrences in respect of any of the facilities and properties
owned, leased or operated that could (A) form the basis of any action, suit,
claim or other judicial or administrative proceeding relating to liability
under or noncompliance with Environmental Law on the part of Holdings, the
Borrower or any of the Subsidiaries or (B) interfere with or prevent continued
compliance with Environmental Laws by Holdings, the Borrower or the
Subsidiaries; or

(h)           has pursuant to any order, decree,
judgment or agreement by which it is bound or has assumed the Environmental
Liability for any Person.

SECTION 3.18.      Insurance.  Schedule 3.18 sets forth a true,
complete and correct description of all insurance maintained by or on behalf of
Holdings, the Borrower and the Subsidiaries as of the Closing Date.  As of the Closing Date, such insurance is in
full force and effect and all premiums have been duly paid.  Holdings, the Borrower and the Subsidiaries
are insured by financially sound and reputable insurers and such insurance is
in such amounts and covering such risks and liabilities (and with such
deductibles, retentions and exclusions) as are in the Borrower’s reasonable
judgment in accordance with normal and prudent industry practice.  None of Holdings, the Borrower or any of the
Subsidiaries (a) has received notice from any insurer (or any agent thereof)
that substantial capital improvements or other substantial expenditures will
have to be made in order to continue such insurance, the cost of which improvements
or expenditures could reasonably be expected, individually or in the aggregate,
to result in a Material Adverse Effect or (b) has any reason to believe that it
will not be able to renew its existing coverage as and when such coverage
expires or to obtain similar coverage from similar insurers at a cost that
could not reasonably be expected to result in a Material Adverse Effect.

SECTION 3.19.      Security Documents.  (a) 
The Guarantee and Collateral Agreement is effective to create in favor
of the Collateral Agent, for the ratable benefit of the Secured Parties, a
legal, valid, binding and enforceable security interest in the Collateral
described therein in which a security interest can be created under Article 8
or 9 of the UCC and proceeds thereof and (i) in the
case of the Pledged Collateral, upon the earlier of (A) when such Pledged
Collateral is delivered to the First Lien Collateral Agent, as bailee for the
Collateral Agent, pursuant to the Intercreditor Agreement and (B) when
financing statements in appropriate form are filed in the offices specified on Schedule
3.19(a) and (ii) in the case of all other Collateral described therein in
which a security interest can be created under Article 8 or 9 of the UCC (other
than Intellectual Property Collateral), when financing statements in
appropriate form are filed in the offices specified on Schedule 3.19(a),
the Guarantee and Collateral Agreement shall constitute a fully perfected Lien
on, and security interest in, all right, title and interest of the Secured
Parties in such Collateral in which a security interest can be created under
Article 8 or 9 of the UCC and proceeds thereof, as security for the
Obligations, in each case prior and superior to the rights of any other person
(except, in the case of all Collateral other than Pledged Collateral, with
respect to Liens expressly permitted by Section 6.02 and, in the case of
Pledged Collateral, with respect to any Liens expressly permitted by clauses
(b), (d) or (s) of Section 6.02).

 46
 

(b)           Each Intellectual Property Security
Agreement is effective to create in favor of the Collateral Agent, for the
ratable benefit of the Secured Parties, a legal, valid, binding and enforceable
security interest in the Intellectual Property Collateral described therein and
proceeds thereof.  When each Intellectual
Property Security Agreement is filed in the United States Patent and Trademark
Office and the United States Copyright Office, respectively, together with
financing statements in appropriate form filed in the offices specified in Schedule
3.19(a), such Intellectual Property Security Agreement shall constitute a
fully perfected Lien on, and security interest in, all right, title and
interest of the grantors thereunder in the Intellectual Property Collateral in
which a security interest may be perfected by filing in the United States and
proceeds thereof, as security for the Obligations, in each case prior and
superior in right to any other person (except with respect to Liens expressly
permitted by Section 6.02) (it being understood that subsequent
recordings in the United States Patent and Trademark Office and the United
States Copyright Office may be necessary to perfect a lien on registered
trademarks, trademark applications and copyrights acquired by the grantors
after the Closing Date).

(c)           Each
of the Mortgages is effective to create in favor of the Collateral Agent, for
the ratable benefit of the Secured Parties, a legal, valid, binding and
enforceable Lien on, and security interest in, all of the Loan Parties’ right,
title and interest in and to the Mortgaged Property thereunder and proceeds
thereof, and when the Mortgages are filed in the offices specified on Schedule
3.19(c), each such Mortgage shall constitute a fully perfected Lien on, and
security interest in, all right, title and interest of the grantors thereof in
such Mortgaged Property and proceeds thereof, as security for the Obligations,
in each case prior and superior in right to any other person (except with
respect to Liens expressly permitted by Section 6.02).

SECTION 3.20.      Location of Real Property.  Schedule 3.20 lists completely and
correctly as of the Closing Date all Real Property and the addresses thereof,
indicating for each parcel whether it is owned or leased, including in the case
of leased Real Property, the landlord name, lease date and lease expiration
date.

SECTION 3.21.      Labor Matters.  As of the Closing Date, there are no strikes,
lockouts or slowdowns against Holdings, the Borrower or any Subsidiary pending
or, to the knowledge of Holdings or the Borrower, threatened.  The hours worked by and payments made to
employees of Holdings, the Borrower and the Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable Federal,
state, local or foreign law dealing with such matters, except for such
violations that could not reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect.  All payments due from Holdings, the Borrower
or any Subsidiary, or for which any claim may be made against Holdings, the
Borrower or any Subsidiary, on account of wages and employee health and welfare
insurance and other benefits, have been paid or accrued as a liability on the
books of Holdings, the Borrower or such Subsidiary, except for such failures
that could not reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.

SECTION 3.22.      Intellectual Property.  Each of Holdings, the Borrower and each of
the Subsidiaries owns, or is licensed to use, all trademarks, tradenames,
copyrights, patents and other intellectual property material to its business,
and the use thereof by Holdings, the Borrower and the Subsidiaries does not
infringe upon the rights of any other person, except for any such 

 47
 

infringements that, individually
or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

SECTION 3.23.      Solvency.  Immediately after the consummation of the
Transactions to occur on the Closing Date and immediately following the making
of each Loan (or other extension of credit hereunder) and after giving effect
to the application of the proceeds of each Loan (or other extension of credit
hereunder), subject, in the case of any guarantee of any Guarantor, to the
terms of Section 2 of the Guarantee and Collateral Agreement, (a) the fair
value of the assets of each Loan Party, at a fair valuation, will exceed its
debts and liabilities, subordinated, contingent or otherwise; (b) the present
fair saleable value of the property of each Loan Party will be greater than the
amount that will be required to pay the probable liability of its debts and
other liabilities, subordinated, contingent or otherwise, as such debts and
other liabilities become absolute and matured; (c) each Loan Party will be able
to pay its debts and liabilities, subordinated, contingent or otherwise, as
such debts and liabilities become absolute and matured; and (d) no Loan Party
will have unreasonably small capital with which to conduct the business in
which it is engaged as such business is now conducted and is proposed to be
conducted following the Closing Date.

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

ARTICLE
IV

CONDITIONS OF LENDING

The obligations of the Lenders to make Loans are
subject to the satisfaction of the following conditions:

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

(b)           The representations and warranties
set forth in each Loan Document shall be true and correct in all material
respects on and as of the date of the making of such Loans with the same effect
as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date, in which
case such representations and warranties shall have been true and correct in
all material respects on and as of such earlier date.

(c)           At the time of and immediately after
the making of such Loans, no Event of Default or Default shall have occurred
and be continuing.

(d)           The Administrative Agent shall have
received a favorable written opinion dated as of the Closing Date of Mayer,
Brown, Rowe & Maw LLP, special counsel for the Loan Parties, in form and
substance reasonably satisfactory to the Administrative Agent, and Holdings,
the Borrower and the Subsidiaries hereby request such counsel to deliver such
opinion.

 48
 

(e)           The Administrative Agent shall have
received (i) a copy of the certificate or articles of incorporation or other
formation documents, including all amendments thereto, of each Loan Party,
certified as of a recent date by the Secretary of State of the state of its
organization, and a certificate as to the good standing of each Loan Party as
of a recent date, from such Secretary of State; (ii) a certificate of the
Secretary or Assistant Secretary of each Loan Party dated the Closing Date and
certifying (A) that attached thereto is a true and complete copy of the by-laws
of such Loan Party as in effect on the Closing Date and at all times since a
date prior to the date of the resolutions described in clause (B) below,
(B) that attached thereto is a true and complete copy of resolutions duly
adopted by the Board of Directors of such Loan Party authorizing the execution,
delivery and performance of the Loan Documents to which such person is a party,
in the case of the Borrower, the borrowings hereunder, in the case of each Loan
Party, the granting of the Liens contemplated to be granted by it under the
Security Documents and, in the case of each Subsidiary Guarantor, the
Guaranteeing of the Obligations as contemplated by the Guarantee and Collateral
Agreement, and that such resolutions have not been modified, rescinded or
amended and are in full force and effect, (C) that the certificate or articles
of incorporation or other formation documents of such Loan Party have not been
amended since the date of the last amendment thereto shown on the certificate
of good standing furnished pursuant to clause (i) above and (D) as to
the incumbency and specimen signature of each officer executing any Loan
Document or any other document delivered in connection herewith on behalf of
such Loan Party; (iii) a certificate of another officer as to the incumbency
and specimen signature of the Secretary or Assistant Secretary executing the
certificate pursuant to (ii) above; and (iv) such other documents as the
Administrative Agent, the Arranger or the Lenders may reasonably request.

(f)            The Administrative Agent shall have
received a certificate, dated the Closing Date and signed by a Financial
Officer of the Borrower, confirming compliance with the conditions precedent
set forth in paragraphs (b) and (c) of this Article IV.

(g)           The Administrative Agent shall have
received (i) this Agreement, executed and delivered by a duly authorized
officer of each of Holdings and the Borrower, (ii) the Guarantee and Collateral
Agreement, executed and delivered by a duly authorized officer of each of
Holdings and the Borrower and each Subsidiary Guarantor, (iii)
the Intellectual Property Security Agreements, executed and delivered by a duly
authorized officer of each Loan Party a party thereto, (iv) if requested by any
Lender pursuant to Section 2.04, a promissory note or notes conforming
to the requirements of such Section and executed and delivered by a duly
authorized officer of the Borrower and (v) a Lender Addendum executed and
delivered by each Lender and accepted by the Borrower.

(h)           The Collateral Agent, for the ratable
benefit of the Secured Parties, shall have been granted on the Closing Date
first priority perfected Liens on the Collateral (subject to the Lien
priorities set forth in the Intercreditor Agreement and subject, in the case of
all Collateral other than Pledged Collateral, only to Liens expressly permitted
by Section 6.02 and, in the case of Pledged Collateral, only to Liens
expressly permitted by clauses (b), (d) or (s) of Section
6.02) and customary Guarantees from the Subsidiary Guarantors.  The Pledged Collateral shall have been duly
and validly pledged under the 

 49
 

Guarantee and
Collateral Agreement to the Collateral Agent, for the ratable benefit of the
Secured Parties, and certificates representing such Pledged Collateral,
accompanied by instruments of transfer and stock powers endorsed in blank,
shall be in the actual possession of the First Lien Collateral Agent, as bailee
for the Collateral Agent, pursuant to the terms of the Intercreditor Agreement.

(i)            The Collateral Agent shall have
received a duly executed Perfection Certificate dated on or prior to the
Closing Date.  The Collateral Agent shall
have received the results of a recent Lien and judgment search in each relevant
jurisdiction with respect to Holdings, the Borrower and those of the
Subsidiaries that shall be Subsidiary Guarantors or shall otherwise have assets
that are included in the Collateral, and such search shall reveal no Liens on
any of the assets of Holdings, the Borrower or any of such Subsidiaries except,
in the case of Collateral other than Pledged Collateral, for Liens expressly
permitted by Section 6.02 and except for Liens to be discharged on or
prior to the Closing Date pursuant to documentation reasonably satisfactory to
the Collateral Agent.

(j)            The Intercreditor Agreement shall
have been executed by the parties thereto.

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

(l)            After giving effect to the
Transactions and the other transactions contemplated hereby, Holdings and its
subsidiaries shall have outstanding no Indebtedness or preferred stock other
than (i) the Loans and other extensions of credit hereunder, (ii) the
Subordinated Notes, (iii) the loans and other extensions of credit under the
First Lien Credit Agreement and (iv) other Indebtedness permitted under Section
6.01.  On the Closing Date and
immediately following the making of the Loans, the Borrower shall repay
$24,685.803.78 of Term Loans under and as defined in the First Lien Credit
Agreement, together with accrued and unpaid interest.

(m)          The Administrative Agent shall have
received the financial statements described in Section 3.05.

(n)           The Administrative Agent shall have
received projections of Holdings and its subsidiaries for the years 2007
through 2011, in form and substance satisfactory to the Administrative Agent.

(o)           The Administrative Agent shall have
received a certificate from the chief financial officer of Holdings certifying
that Holdings, the Borrower and each of the Subsidiary Guarantors, after giving
effect to the Transactions and the other transactions contemplated hereby, are
solvent.

(p)           All material governmental and third
party consents and approvals with respect to the Transactions and the other
transactions contemplated hereby to the extent 

 50
 

required shall
have been obtained, all applicable appeal periods shall have expired and there
shall be no litigation, governmental, administrative or judicial action, actual
or threatened, that could reasonably be expected to restrain, prevent or impose
materially burdensome conditions on the Transactions or the other transactions
contemplated hereby.

(q)           The Administrative Agent shall have
received all documentation and other information required by bank regulatory
authorities under applicable “know your customer” and anti-money laundering
rules and regulations, including the U.S.A. Patriot Act.

(r)            The Administrative Agent shall have
received a copy of, or a certificate as to coverage under, the insurance
policies required by this Agreement, each of which shall be endorsed or
otherwise amended to include a customary lender’s loss payable endorsement and
to name the Collateral Agent as additional insured, in form and substance
reasonably satisfactory to the Administrative Agent.

(s)           The Amendment dated as of December
20, 2006 to the First Lien Credit Agreement shall have become effective in
accordance with its terms.

ARTICLE V

AFFIRMATIVE COVENANTS

Each of Holdings and the Borrower covenants and agrees
with each Lender that so long as this Agreement shall remain in effect and
until the Commitments have been terminated and the principal of and interest on
each Loan, all fees and all other expenses or amounts payable under any Loan
Document shall have been paid in full, each of Holdings and the Borrower will,
and will cause each of the Subsidiaries to:

SECTION 5.01.      Existence; Businesses and Properties.  (a)  Do
or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence, except as otherwise expressly permitted
under Section 6.05.

(b)           Do
or cause to be done all things necessary to obtain, preserve, renew, extend and
keep in full force and effect the rights, licenses, permits, franchises,
authorizations, patents, copyrights, trademarks and trade names material to the
conduct of its business; maintain and operate such business in substantially
the manner in which it is presently conducted and operated; comply in all
material respects with all applicable laws, rules, regulations and decrees and
orders of any Governmental Authority, whether now in effect or hereafter
enacted; and at all times maintain and preserve all property material to the
conduct of such business and keep such property in good repair, working order
and condition and from time to time make, or cause to be made, all needful and
proper repairs, renewals, additions, improvements and replacements thereto
necessary in order that the business carried on in connection therewith may be
properly conducted at all times.

SECTION 5.02.      Insurance.  Keep its insurable properties adequately
insured at all times by financially sound and reputable insurers; maintain such
other insurance, to such extent 

 51
 

and against such risks
(and with such deductibles, retentions and exclusions) as is customary with
companies in the same or similar businesses operating in the same or similar
locations, including liability insurance against claims for personal injury or
death or property damage occurring upon, in, about or in connection with the
use of any properties owned, occupied or controlled by it; maintain such other
insurance as may be required by law; and maintain such other insurance as
otherwise required by the Security Documents.

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

SECTION 5.04.      Financial Statements, Reports, etc.  In the case of the Borrower, furnish to the
Administrative Agent for distribution to each Lender:

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

(b)           within
45 days after the end of each of the first three fiscal quarters of each fiscal
year, its consolidated balance sheet and related statements of income,
stockholders’ equity and cash flows showing the financial condition of the
Borrower and its consolidated Subsidiaries as of the close of such fiscal
quarter and the results of its operations and the operations of such
Subsidiaries during such fiscal quarter and the then elapsed portion of the fiscal
year, and comparative figures for the same periods in the immediately preceding
fiscal year, all certified by one of its Financial Officers as fairly
presenting the financial condition and results of operations of the Borrower
and its consolidated Subsidiaries on a consolidated basis in accordance with
GAAP consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes;

 52
 

(c)           (i)
concurrently with any delivery of financial statements under paragraph (a) above, a letter from the accounting firm
opining on such statements (which letter may be limited to accounting matters
or other items that independent certified public accountants are permitted to
cover in such letters pursuant to their professional standards and customs and may
disclaim responsibility for legal interpretations) stating whether, in
connection with their audit examination, anything has come to their attention
which would cause them to believe that there has been a violation of any of the
provisions of Section 6.10 or 6.12 of this Agreement or, if any
such a violation has occurred, specifying the nature thereof; provided
that no such letter shall be required to the extent that (x) it is prohibited
at such time by the then current recommendations of the American Institute of
Certified Public Accountants or any other applicable accounting governing body
or (y) such accounting firm has at such time a firm-wide policy prohibiting the
delivery of such a letter and such firm does not at such time provide such
letters in connection with any other credit agreements, (ii) concurrently with
any delivery of financial statements under paragraph (a) above, a
certificate of a Financial Officer of the Borrower identifying the assets
transferred to the Foreign Target during such fiscal year and setting forth the
Borrower’s election pursuant to paragraph (b)(i)(II)(b)(i) of Section
6.05 and (iii) concurrently with any delivery of financial statements under
paragraph (a) or (b) above, a certificate of a Financial Officer
of the Borrower (A) certifying that no Event of Default or Default has occurred
or, if such an Event of Default or Default has occurred, specifying the nature
and extent thereof and any corrective action taken or proposed to be taken with
respect thereto and (B) setting forth computations in reasonable detail
satisfactory to the Administrative Agent demonstrating compliance with the
covenant contained in Section 6.12 and, in the case of a certificate
delivered with the financial statements required by paragraph (a) above
with respect to the fiscal year ending December 31, 2006 and each fiscal year
thereafter, setting forth the Borrower’s calculation of Excess Cash Flow;

(d)           within
90 days after the end of each fiscal year of the Borrower, a detailed
consolidated budget for the following fiscal year (including a projected
consolidated balance sheet and related statements of projected operations and
cash flows as of the end of and for such following fiscal year and setting
forth the assumptions used for purposes of preparing such budget) and, promptly
when available, any significant revisions of such budget;

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

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

(g)           promptly,
from time to time, such other information regarding the operations, business
affairs and financial condition of Holdings, the Borrower or any 

 53
 

Subsidiary, or compliance with
the terms of any Loan Document, as the Administrative Agent or any Lender
(acting through the Administrative Agent) may reasonably request.

SECTION 5.05.      Litigation and Other Notices.  Furnish to the Administrative Agent and each
Lender written notice of the following promptly after any Responsible Officer
obtains knowledge thereof:

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

(b)           the filing or commencement of, or any
threat or notice of intention of any person to file or commence, any action,
suit or proceeding, whether at law or in equity or by or before any arbitrator
or Governmental Authority, against Holdings, the Borrower or any Subsidiary
that involves, in the Borrower’s good faith judgment, a reasonable possibility
of an adverse determination and which, if adversely determined, could
reasonably be expected to result in a Material Adverse Effect;

(c)           the occurrence of any ERISA Event
described in clause (b) of the definition thereof or any other ERISA
Event that, alone or together with any other ERISA Events that have occurred,
could reasonably be expected to result in liability of Holdings, the Borrower
and the Subsidiaries in an aggregate amount of $6,000,000 or greater; and

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

SECTION 5.06.      Information Regarding Collateral.  (a) 
Furnish to each of the Administrative Agent and the Collateral Agent (i)
prompt written notice of any change (A) in any Loan Party’s corporate name, (B)
in any Loan Party’s corporate structure or (C) in any Loan Party’s Federal
Taxpayer Identification Number and (ii) on the date of delivery of financial
statements and certificates required by Section 5.04(a), written notice
of any change, if any, in the location of Collateral with a fair market value
(as determined by the Borrower) in excess of $1,000,000.  Each of Holdings and the Borrower agrees not
to effect or permit any change referred to in the preceding sentence unless all
filings have been made (or will have been made within 30 days of such change)
under the UCC or otherwise and all other actions have been taken (or will have
been taken within 30 days of such change) that are required in order for the
Collateral Agent to continue at all times following such change to have a
valid, legal and perfected security interest in all the Collateral.  Each of Holdings and the Borrower also agrees
promptly to notify each of the Administrative Agent and the Collateral Agent if
any material portion of the Collateral is damaged or destroyed.

(b)           In
the case of the Borrower, each year, unless otherwise agreed by the
Administrative Agent to extend such time, at the time of delivery of the annual
financial statements with respect to the preceding fiscal year pursuant to Section
5.04(a), deliver to the Administrative Agent a certificate of a Financial
Officer setting forth the information required pursuant to Section I of the
Perfection Certificate.

SECTION 5.07.      Maintaining Records; Access to
Properties and Inspections.  Keep
proper books of record and account in which full, true and correct entries in
conformity with 

 54
 

GAAP and all requirements
of law are made of all dealings and transactions in relation to its business
and activities.  Each of Holdings and the
Borrower will, and will cause each of its subsidiaries to, permit any representatives
designated by the Administrative Agent or any Lender to visit and inspect
(including with respect to environmental matters) the financial records and the
properties of Holdings or the Borrower, as the case may be, or any of its
subsidiaries at reasonable times (but, in the case of any Lenders, not more
than one time each year for all Lenders and at such Lenders’ expense, unless an
Event of Default is continuing) and to make extracts from and copies of such
financial records, and permit any representatives designated by the
Administrative Agent or any Lender (acting through the Administrative Agent) to
discuss the affairs, finances and condition of Holdings or the Borrower, as the
case may be, or any of its subsidiaries with the officers thereof and
independent accountants therefor; provided that the Borrower shall be
given an opportunity to have a designated representative present at any
discussions with such independent accountants if available at such time and
shall be given at least five Business Days’ notice of such discussions.

SECTION 5.08.      Use of Proceeds.  Use the proceeds of the Loans only for the
purposes set forth in Section 3.13.

SECTION 5.09.      Additional Collateral, etc.  (a) 
Subject to the terms of the Intercreditor Agreement, with respect to any
Collateral acquired after the Closing Date or, in the case of inventory or
equipment, any material Collateral moved after the Closing Date by the Borrower
or any other Loan Party (other than any Collateral described in paragraphs
(b), (c) or (d) of this Section) as to which the Collateral
Agent, for the benefit of the Secured Parties, does not as a result of such
acquisition or move have a first priority perfected security interest (subject
to the Lien priorities set forth in the Intercreditor Agreement and subject to
Liens expressly permitted by Section 6.02), promptly (and, in any event,
within 20 days following the date of such acquisition) (i) execute and deliver
to the Administrative Agent and the Collateral Agent such amendments to the Guarantee
and Collateral Agreement or such other Security Documents substantially similar
to those that are delivered to the First Lien Agent to grant to the Collateral
Agent, for the benefit of the Secured Parties, a security interest in such
Collateral and (ii) promptly following the Administrative Agent’s or the
Collateral Agent’s request, take all actions necessary or advisable to grant
to, or continue on behalf of, the Collateral Agent, for the benefit of the
Secured Parties, a perfected first priority security interest (subject to the
Lien priorities set forth in the Intercreditor Agreement and subject to Liens
expressly permitted by Section 6.02) in such Collateral, including the
filing of UCC financing statements in such jurisdictions as may be required by
the Guarantee and Collateral Agreement or by law or as may be requested by the
Administrative Agent or the Collateral Agent.

(b)           Subject
to the terms of the Intercreditor Agreement, with respect to any (x) fee
interest in any Collateral consisting of material Real Property (as determined
by Administrative Agent) and (y) lease of Collateral consisting of Real
Property with an annual base rent in excess of $2,500,000 after the expiration
of any rent abatement or free rent period, acquired or leased after the Closing
Date by the Borrower or any other Loan Party and promptly (and, in any event,
within 20 days following the date of such acquisition, in the case of clause
(x)) (i) execute and deliver or, in the case of clause (y), use
commercially reasonable efforts to execute and deliver, a first priority
(subject to the Lien priorities set forth in the Intercreditor Agreement and
subject to Liens expressly permitted by Section 6.02) Mortgage in favor
of the Collateral Agent, for the 

 55
 

benefit of the Secured Parties, covering such Real Property and
complying with the provisions herein and in the Security Documents, (ii)
provide or, in the case of clause (y), use commercially reasonable
efforts to provide, the Secured Parties with title and extended coverage insurance
in an amount at least equal to the purchase price of such Real Property (or
such other amount as the Administrative Agent shall reasonably specify),
surveys, and if applicable, flood insurance, lease estoppel certificates or, in
the event that the Administrative Agent has determined that a recorded
memorandum of lease or an amendment of lease is necessary or appropriate in
order to make any such leased Real Property mortgageable, evidence of such
recordation or a copy of such fully executed and binding lease amendment, all
as may be reasonably requested by the Administrative Agent, (iii) if requested
by the First Lien Administrative Agent, deliver to the Administrative Agent and
the Collateral Agent legal opinions relating to the matters described above,
which opinions shall be in form and substance substantially similar to those
legal opinions that are delivered to the First Lien Administrative Agent and
(iv) deliver to the Administrative Agent a notice identifying, and upon the
Administrative Agent’s request and subject to any contractual restrictions
contained therein, provide a copy of, the consultant’s reports, environmental
site assessments or other documents relied upon by the Borrower or any other
Loan Party to determine that any such Real Property included in such Collateral
does not contain Hazardous Materials of a form or type or in a quantity or
location that could reasonably be expected to result in a material
Environmental Liability.  Holdings or the
Borrower shall use commercially reasonable efforts to deliver to the
Administrative Agent estoppel certificates from the landlord with respect to
each leased Mortgaged Property, confirming the nonexistence of any default
thereunder and certain other information with respect to such lease, each of
the foregoing in form and substance reasonably satisfactory to the
Administrative Agent and the Collateral Agent.

(c)           Subject
to the terms of the Intercreditor Agreement, with respect to any Subsidiary
(other than an Excluded Foreign Subsidiary or a Receivables Subsidiary) created
or acquired after the Closing Date (which, for the purposes of this paragraph,
shall include any existing Subsidiary that ceases to be an Excluded Foreign
Subsidiary at any time after the Closing Date) by the Borrower or any of the
Subsidiaries, promptly (and, in any event, within 20 days following such
creation or the date of such acquisition) (i) execute and deliver to the
Administrative Agent and the Collateral Agent such amendments or supplements to
the Guarantee and Collateral Agreement substantially similar to those that are
delivered to the First Lien Collateral Agent to grant to the Collateral Agent,
for the benefit of the Secured Parties, a valid, perfected first priority
security interest (subject to the Lien priorities set forth in the
Intercreditor Agreement and subject to Liens expressly permitted by clauses
(b), (d) or (s) of Section 6.02) in the Equity
Interests in such new Subsidiary that are owned by the Borrower or any of the
Subsidiaries, (ii) deliver to the First Lien Collateral Agent, as bailee for
the Collateral Agent, pursuant to the Intercreditor Agreement, the
certificates, if any, representing such Equity Interests, together with undated
stock powers, in blank, executed and delivered by a duly authorized officer of
the Borrower or such Subsidiary, as the case may be, (iii) cause such new
Subsidiary (A) to become a party to the Guarantee and Collateral Agreement (and
provide Guarantees of the Obligations) and the Intellectual Property Security
Agreements and (B) to take such actions necessary or advisable to grant to the
Collateral Agent, for the benefit of the Secured Parties, a perfected first
priority security interest (subject to the Lien priorities set forth in the
Intercreditor Agreement and subject to Liens expressly permitted by Section
6.02) in the Collateral described in the Guarantee and Collateral Agreement
and the Intellectual Property 

 56
 

Security Agreement with respect to such new Subsidiary, including the
recording of instruments in the United States Patent and Trademark Office and
the United States Copyright Office and the filing of UCC financing statements
in such jurisdictions as may be required by the Guarantee and Collateral
Agreement, the Intellectual Property Security Agreement or by law or as may be
requested by the Administrative Agent or the Collateral Agent and (iv) if
requested by the First Lien Administrative Agent, deliver to the Administrative
Agent and the Collateral Agent legal opinions relating to the matters described
above, which opinions shall be in form and substance substantially similar to
those legal opinions that are delivered to the First Lien Administrative Agent.

(d)           Subject
to the terms of the Intercreditor Agreement, with respect to any Excluded
Foreign Subsidiary created or acquired after the Closing Date directly by the
Borrower or any of its Domestic Subsidiaries, promptly (and, in any event,
within 60 days following such creation or the date of such acquisition) (i)
execute and deliver to the Administrative Agent and the Collateral Agent such
amendments to the Guarantee and Collateral Agreement substantially similar to
those that are delivered to the First Lien Collateral Agent to grant to the
Collateral Agent, for the benefit of the Secured Parties, a perfected first
priority security interest (subject to the Lien priorities set forth in the
Intercreditor Agreement and subject to Liens expressly permitted by clauses
(b), (d) or (s) of Section 6.02) in the Equity
Interests in such new Excluded Foreign Subsidiary that is directly owned by the
Borrower or any of its Domestic Subsidiaries (provided that in no event
shall more than 65% of the total outstanding voting Equity Interests in any
such new Excluded Foreign Subsidiary be required to be so pledged), (ii)
deliver to the First Lien Collateral Agent, as bailee for the Collateral Agent,
pursuant to the Intercreditor Agreement, the certificates (if applicable)
representing such Equity Interests, together with undated stock powers, in
blank, executed and delivered by a duly authorized officer of the Borrower or
such Domestic Subsidiary, as the case may be, and take such other action as may
be necessary or, in the opinion of the Administrative Agent or the Collateral
Agent, desirable to perfect the security interest of the Collateral Agent
thereon and (iii) if requested by the First Lien Administrative Agent, deliver
to the Administrative Agent and the Collateral Agent legal opinions relating to
the matters described above, which opinions shall be in form and substance substantially
similar to those legal opinions that are delivered to the First Lien
Administrative Agent.

(e)           Subject
to the terms of the Intercreditor Agreement, prior to the Discharge of First
Lien Obligations, the requirement of this Section 5.09 to deliver any
Collateral to the Collateral Agent shall be deemed satisfied by the delivery of
such Collateral to the First Lien Collateral Agent, as bailee for the
Collateral Agent pursuant to the Intercreditor Agreement.

SECTION 5.10.      Further Assurances.  From time to time duly authorize, execute and
deliver, or cause to be duly authorized, executed and delivered, such
additional instruments, certificates, financing statements, agreements or
documents, and take all such actions (including filing UCC and other financing
statements), as the Administrative Agent or the Collateral Agent may reasonably
request, for the purposes of implementing or effectuating the provisions of
this Agreement and the other Loan Documents, or of more fully perfecting or
renewing the rights of the Administrative Agent, the Collateral Agent and the
Secured Parties with respect to the Collateral (or with respect to any
additions thereto or replacements or proceeds or products thereof or with
respect to any other property or assets hereafter acquired by Holdings, the 

 57
 

Borrower or any
Subsidiary which may be deemed to be part of the Collateral) pursuant hereto or
thereto.  Upon the exercise by the
Administrative Agent, the Collateral Agent or any Lender of any power, right,
privilege or remedy pursuant to this Agreement or the other Loan Documents
which requires any consent, approval, recording, qualification or authorization
of any Governmental Authority, each of Holdings and the Borrower will execute
and deliver, or will cause the execution and delivery of, all applications,
certifications, instruments and other documents and papers that the
Administrative Agent, the Collateral Agent or such Lender may be required to
obtain from Holdings, the Borrower or any of the Subsidiaries for such governmental
consent, approval, recording, qualification or authorization.

SECTION 5.11.      Post-Closing Obligations.  Use commercially reasonable efforts to
complete the following items as promptly as practicable following the Closing
Date and, in any event, within 60 days after the Closing Date, unless the
Administrative Agent, in its sole discretion, agrees to an extension of such
period: (a) deliver to the Administrative Agent (i) a Mortgage covering each of
the Mortgaged Properties, executed and delivered by a duly authorized officer
of each Loan Party thereto, (ii) an opinion of Baker Donelson Bearman Caldwell
& Berkowitz, Mississippi real estate counsel for Holdings, the Borrower and
the Subsidiaries, in form and substance reasonably satisfactory to the Administrative
Agent, and (iii) such reports, documents and agreements (including title
insurance, flood insurance and surveys) as the Administrative Agent shall
reasonably request and that are customarily delivered in connection with
security interests in real property and (b) deliver to the Administrative Agent
(i) certificates representing no less than 65% of the voting Equity Interests
in Jineng to be delivered to the First Lien Administrative Agent or the
Administrative Agent, as applicable, in accordance with the Intercreditor
Agreement, duly endorsed by the applicable Grantor (as defined in the Guarantee
and Collateral Agreement) to the First Lien Administrative Agent or the
Administrative Agent, as applicable, in accordance with the Intercreditor
Agreement, together with an undated stock power or similar instrument of
transfer covering such certificates duly executed in blank by the applicable
Grantor (as defined in the Guarantee and Collateral Agreement) and (ii) an
Acknowledgment and Consent executed and delivered by Jineng, substantially in
the form of Exhibit A to the Guarantee and Collateral Agreement.

ARTICLE
VI

NEGATIVE COVENANTS

Each of Holdings and the Borrower covenants and agrees
with each Lender that, so long as this Agreement shall remain in effect and
until the Commitments have been terminated and the principal of and interest on
each Loan, all fees and all other expenses or amounts payable under any Loan
Document have been paid in full, neither Holdings nor the Borrower will, nor
will it cause or permit any of the Subsidiaries to:

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

(a)           Indebtedness existing on the
Reference Date and set forth in Schedule 6.01 and any Permitted
Refinancing Indebtedness in respect of any such Indebtedness;

 58

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

(c)           unsecured
intercompany Indebtedness of Holdings, the Borrower and the Subsidiaries to the
extent permitted by Section 6.04(a) or Section 6.04(i) so long as
such Indebtedness is subordinated to the Obligations pursuant to an Affiliate
Subordination Agreement;

(d)           Indebtedness
of the Borrower or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets; provided
that (i) such original Indebtedness is incurred prior to or within 120 days
after such acquisition or the completion of such construction or improvement
and (ii) the aggregate principal amount of Indebtedness permitted by this Section
6.01(d), when combined with the aggregate principal amount of all Capital
Lease Obligations and Synthetic Lease Obligations incurred pursuant to Section
6.01(e), shall not exceed (x) if at the time of such incurrence the Senior
Leverage Ratio shall be greater than 3.50 to 1.00 as of the most recently
completed period ending prior to such transaction for which the financial
statements and certificates required by Section 5.04(a) or 5.04(b)
were required to be delivered or for which comparable financial statements have
been filed with or furnished to the Securities Exchange Commission, after
giving pro forma effect to such
transaction and to any other event occurring after such period which required a
pro forma calculation to be made
hereunder as if such transaction had occurred as of the first day of such
period, $6,000,000 or (y) if otherwise, $30,000,000, at any time outstanding;

(e)           Capital
Lease Obligations and Synthetic Lease Obligations in an aggregate principal
amount, when combined with the aggregate principal amount of all Indebtedness
incurred pursuant to Section 6.01(d), not exceeding (x) if at the time
of such incurrence the Senior Leverage Ratio shall be greater than 3.50 to 1.00
as of the most recently completed period ending prior to such transaction for
which the financial statements and certificates required by Section 5.04(a)
or 5.04(b) were required to be delivered or for which comparable
financial statements have been filed with or furnished to the Securities
Exchange Commission, after giving pro forma
effect to such transaction and to any other event occurring after such period
which required a pro forma
calculation to be made hereunder as if such transaction had occurred as of the
first day of such period, $6,000,000 or (y) if otherwise, $30,000,000, at any
time outstanding;

(f)            Indebtedness
of the Borrower under the Subordinated Notes and Indebtedness of the Subsidiary
Guarantors under any Guarantees in respect of the Subordinated Notes and any
Permitted Refinancing Indebtedness in respect of any such Indebtedness;

(g)           if
at the time of such incurrence the Senior Leverage Ratio shall be less than or
equal to 3.50 to 1.00 as of the most recently completed period ending prior to
such transaction for which the financial statements and certificates required
by Section 5.04(a) or 5.04(b) were required to be delivered or
for which comparable financial statements have been filed with or furnished to
the Securities Exchange Commission, after giving pro forma effect to such transaction and to any other event
occurring after such period which required a pro
forma calculation to be made hereunder as if such 

 59
 

transaction had occurred as of
the first day of such period, Indebtedness of any person that becomes a
Subsidiary after the Closing Date hereof; provided that (i) such
Indebtedness exists at the time such person becomes a Subsidiary and is not
created in contemplation of or in connection with such person becoming a
Subsidiary, (ii) immediately before and after such person becomes a Subsidiary,
no Default or Event of Default shall have occurred and be continuing and (iii) the aggregate principal amount of Indebtedness
permitted by this Section 6.01(g) shall not exceed $9,000,000 at any
time outstanding;

(h)           if
at the time of such incurrence the Senior Leverage Ratio shall be less than or
equal to 3.50 to 1.00 as of the most recently completed period ending prior to
such transaction for which the financial statements and certificates required
by Section 5.04(a) or 5.04(b) were required to be delivered or
for which comparable financial statements have been filed with or furnished to
the Securities Exchange Commission, after giving pro forma effect to such transaction and to any other event
occurring after such period which required a pro
forma calculation to be made hereunder as if such transaction had
occurred as of the first day of such period, unsecured Indebtedness of the
Borrower or the Subsidiary Guarantors that is subordinated to the Obligations
to the same degree (or to a greater degree) as the Subordinated Notes, in each
case (i) that does not mature, and is not subject to mandatory repurchase,
redemption or amortization (other than pursuant to customary asset sale or
change of control provisions requiring redemption or repurchase only if and to
the extent permitted by this Agreement) prior to the date that is six months
after the Maturity Date and (ii) that is not exchangeable or convertible into
Indebtedness of the Borrower or any Subsidiary (other than other Indebtedness
permitted by this clause) or any preferred stock or other Equity Interest
(other than common equity); provided that either (A) the Net Cash
Proceeds thereof are used to refinance Term Loans (as defined in the First Lien
Credit Agreement), refinance and permanently reduce commitments in respect of
Revolving Loans (as defined in the First Lien Credit Agreement or refinance
Loans hereunder or (B) the proceeds thereof are used to consummate a Permitted
Acquisition or an Investment permitted pursuant to Section 6.04(k)
(including financing the cash consideration payable in connection with a
Permitted Acquisition or such an Investment or refinancing any Indebtedness of
the Acquired Entity and the payment of related fees and expenses); provided,
further, that the aggregate principal amount of Indebtedness permitted
by clause (B) of this Section 6.01(h)
shall not exceed $6,000,000 at any time outstanding;

(i)            Indebtedness
under performance, surety, appeal or indemnity bonds or with respect to workers’
compensation claims, in each case incurred in the ordinary course of business;

(j)            Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently drawn against insufficient funds in
the ordinary course of business; provided that such Indebtedness is
promptly covered by the Borrower or any Subsidiary;

(k)           Indebtedness
of a Receivables Subsidiary in respect of Securitization Transactions solely to
the extent the Net Cash Proceeds thereof are used to refinance 

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Term Loans (under and as defined in the First Lien Credit Agreement),
refinance and permanently reduce commitments in respect of Revolving Loans
(under and as defined in the First Lien Credit Agreement) or refinance Loans
hereunder; provided that the aggregate principal amount of Indebtedness
permitted by this Section 6.01(k) shall not exceed $15,000,000 at any
time outstanding;

(l)            Indebtedness
incurred by Foreign Subsidiaries in an aggregate principal amount not exceeding
(x) if at the time of such incurrence the Senior Leverage Ratio shall be
greater than 3.50 to 1.00 as of the most recently completed period ending prior
to such transaction for which the financial statements and certificates
required by Section 5.04(a) or 5.04(b) were required to be
delivered or for which comparable financial statements have been filed with or
furnished to the Securities Exchange Commission, after giving pro forma effect to such transaction and
to any other event occurring after such period which required a pro forma calculation to be made hereunder
as if such transaction had occurred as of the first day of such period,
$2,500,000 or (y) if otherwise, $15,000,000, at any time outstanding;

(m)          to
the extent constituting Indebtedness of the Borrower or any Subsidiary,
customary indemnification or deferred purchase price adjustments, including
wholly contingent earn-outs or similar obligations, in each case incurred in
connection with the acquisition of any business or assets, including Equity
Interests, permitted to be acquired hereunder; provided that the maximum
aggregate liability in respect of all such obligations permitted by this clause
(m) shall not exceed 25% of the purchase price for such acquisitions;

(n)           Permitted
Holdings Indebtedness;

(o)           other
Indebtedness (including subordinated Indebtedness) of the Borrower or the
Subsidiaries in an aggregate principal amount not exceeding (x) if at the time
of such incurrence the Senior Leverage Ratio shall be greater than 3.50 to 1.00
as of the most recently completed period ending prior to such transaction for
which the financial statements and certificates required by Section 5.04(a)
or 5.04(b) were required to be delivered or for which comparable
financial statements have been filed with or furnished to the Securities
Exchange Commission, after giving pro forma
effect to such transaction and to any other event occurring after such period
which required a pro forma
calculation to be made hereunder as if such transaction had occurred as of the
first day of such period, $2,500,000 or (y) if otherwise, $25,000,000, at any
time outstanding; provided that the aggregate principal amount of such
Indebtedness permitted by this Section 6.01(o) that is incurred by a
Loan Party that is secured shall not exceed $2,500,000 at any time outstanding;
and

(p)           subject
to the terms of the Intercreditor Agreement, Indebtedness in respect of the
First Lien Credit Agreement in an aggregate principal amount of up to
$133,000,000 at any time outstanding, less the amount of any principal payments
made thereon after the Closing Date which are accompanied by a permanent
reduction in the commitments thereunder, any Guarantees in respect of such
Indebtedness, and any Permitted Refinancing Indebtedness in respect of such
Indebtedness.

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

(a)           Liens
on property or assets of the Borrower and the Subsidiaries existing on the
Reference Date and set forth in Schedule 6.02; provided that such
Liens shall secure only those obligations which they secure on the Reference
Date and refinancings, extensions, renewals and replacements thereof permitted
hereunder;

(b)           any
Lien created under the Loan Documents (including in respect of Hedging
Agreements that are permitted by the terms of the Security Documents to be
secured thereunder);

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

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

(e)           carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens
arising in the ordinary course of business and securing obligations that are
not overdue for a period of more than 30 days or which are being contested in
compliance with Section 5.03;

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

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

(h)           zoning
restrictions, easements, rights-of-way, restrictions on use of Real Property
and other similar encumbrances incurred in the ordinary course of business
which, in the aggregate, are not substantial in amount and do not materially
detract from the value of the property subject thereto or interfere with the ordinary
conduct of the business of the Borrower or any of the Subsidiaries or the
ability of the Borrower or any of the Subsidiaries to utilize such property for
its intended purpose;

(i)            purchase
money security interests in Real Property, improvements thereto or other fixed
or capital assets hereafter acquired (or, in the case of improvements,
constructed) by the Borrower or any Subsidiary; provided that (i) such
security interests 

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secure Indebtedness permitted by Section 6.01, (ii) such
security interests are incurred, and the Indebtedness secured thereby is
created, within 90 days after such acquisition (or construction) and (iii) such
security interests do not apply to any other property or assets of the Borrower
or any Subsidiary;

(j)            judgment
Liens securing judgments not constituting an Event of Default under Article
VII;

(k)           any
interest or title of a lessor, sublessor or licensor under any lease (including
a capital lease or synthetic lease) or license entered into by the Borrower or
any of its Subsidiaries in the ordinary course of business and covering only
the assets so leased or licensed, as the case may be, and including any Liens
arising from precautionary UCC financing statements filed under any such lease;

(l)            Liens
on cash deposits and other funds maintained with a depositary institution, in
each case arising in the ordinary course of business by virtue of any statutory
or common law provision relating to banker’s liens, including Section 4-210 of
the UCC;

(m)          Liens
of sellers of goods to the Borrower or any of the Subsidiaries arising under
Section 2-502 of the UCC in the ordinary course of business; provided
that such Liens apply only to the goods sold and secure only the unpaid
purchase price for such goods and related expenses;

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

(o)           Liens
arising from an agreement by the Borrower or any of the Subsidiaries to Dispose
of any asset in accordance with the provisions hereof; provided that
such Liens apply only to the assets to be Disposed of;

(p)           Liens
in connection with Securitization Transactions permitted by Section 6.01(k)
on the assets that are the subject of such Securitization Transactions; provided
that such Liens apply only to assets in respect of which security interests are
customarily granted in connection with asset securitization transactions
involving accounts receivable;

(q)           Liens
on assets owned or leased by the Foreign Target securing not more than
$15,000,000 of Indebtedness at any time outstanding;

(r)            Liens
not otherwise permitted by this Section 6.02 so long as neither (i) the
aggregate outstanding principal amount of the obligations secured thereby nor
(ii) the aggregate fair market value of the assets subject thereto exceeds
$2,500,000 at any one time; and

(s)           Liens
on the Collateral securing obligations in respect of First Lien Indebtedness
and Hedging Agreements permitted under the First Lien Loan Documents 

 63
 

(or, in each case, any Guarantees thereof), in each case permitted to
be incurred hereunder, or any refinancing thereof permitted hereunder.

SECTION 6.03.      Sale and Lease-Back Transactions.  Enter into any arrangement, directly or
indirectly, with any person whereby it shall sell or transfer any property,
real or personal or mixed, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other
property which it intends to use for substantially the same purpose or purposes
as the property being sold or transferred unless (a) the sale of such property
is permitted by Section 6.05 and (b) any Capital Lease Obligations,
Synthetic Lease Obligations or Liens arising in connection therewith are
permitted by Sections 6.01 and 6.02, respectively.

SECTION 6.04.      Investments, Loans and Advances.  Purchase, hold or acquire any Equity
Interests, evidences of indebtedness or other securities of, make or permit to
exist any loans or advances or capital contributions to, or make or permit to
exist any investment or any other interest in, any other person (all of the
foregoing, “Investments”), except:

(a)           (i)
Investments by Holdings, the Borrower and the Subsidiaries existing on the
Reference Date in the Equity Interests of, or in the form of loans or advances
to, the Borrower and the Subsidiaries and (ii) additional Investments by
Holdings, the Borrower and the Subsidiaries in the Equity Interests of, or in
the form of loans or advances to, the Borrower and the Subsidiaries; provided
that (A) any such Equity Interests held by a Loan Party shall be pledged
pursuant to the Guarantee and Collateral Agreement (subject to the limitation
referred to in Section 5.09(d) in the case of any Excluded Foreign
Subsidiary), (B) in the case of clause (ii), the aggregate amount of
additional Investments by Loan Parties in Subsidiaries that are not Subsidiary
Guarantors (including the Foreign Target) shall not exceed $35,000,000 (unless
otherwise reduced by the amount of Asset Sales to the Foreign Target pursuant
to Section 6.05(b)(i)) at any time outstanding and (C) if such
Investment shall be in the form of a loan or advance, such loan or advance
shall be unsecured and subordinated to the Obligations pursuant to an Affiliate
Subordination Agreement and, if such loan or advance shall be made by a Loan
Party, it shall be evidenced by a promissory note pledged to the Collateral
Agent for the ratable benefit of the Secured Parties pursuant to the Guarantee
and Collateral Agreement (provided that this clause (C) shall not
apply to the loans and advances made and to be made to Jineng pursuant to the
commitments existing on the Reference Date or to the Foreign Target);

(b)           Permitted
Investments;

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

(d)           the
Borrower and the Subsidiaries may make loans and advances in the ordinary
course of business to their respective employees so long as the aggregate
principal amount thereof at any time outstanding (determined without regard to
any write-downs or write-offs of such loans and advances) shall not exceed
$2,000,000;

 64
 

(e)           Permitted
Acquisitions;

(f)            Investments
existing on the Reference Date and set forth on Schedule 6.04;

(g)           extensions
of trade credit in the ordinary course of business;

(h)           Investments
made as a result of the receipt of non-cash consideration from a Disposition of
any asset in compliance with Section 6.05;

(i)            intercompany
loans and advances to Holdings to the extent that the Borrower may pay
dividends to Holdings pursuant to Section 6.06 (and in lieu of paying
such dividends); provided that such intercompany loans and advances (i)
shall be made for the purposes, and shall be subject to all the applicable
limitations set forth in, Section 6.06 and
(ii) shall be unsecured and subordinated to the Obligations pursuant to an
Affiliate Subordination Agreement;

(j)            Investments
made by any person that becomes a Subsidiary after the Closing Date; provided
that (i) such Investments exist at the time such person becomes a Subsidiary
and are not made in contemplation of or in connection with such person becoming
a Subsidiary and (ii) at the time such person becomes a Subsidiary no portion
of such Investments may represent a commitment or other obligation to make or
fund any additional Investment that has not been made on funded at such time;
and

(k)           in
addition to Investments permitted by paragraphs (a) through (j)
above, additional Investments by the Borrower and the Subsidiaries so long as
the aggregate amount invested, loaned or advanced pursuant to this clause
(determined without regard to any write-downs or write-offs of such
investments, loans and advances) does not exceed $19,500,000 in the aggregate.

SECTION 6.05.      Mergers, Consolidations, Sales of
Assets and Acquisitions.  (a)  Merge into or consolidate with any other
person, or permit any other person to merge into or consolidate with it, or
liquidate or dissolve, or Dispose of (in one transaction or in a series of
transactions) all or substantially all the assets (whether now owned or
hereafter acquired) of the Borrower or less than all the Equity Interests of
any Subsidiary, or purchase, lease or otherwise acquire (in one transaction or
a series of transactions) all or substantially all of the assets of any other
person, except for (i) the purchase and sale by the Borrower or any Subsidiary
of inventory or the Disposition of obsolete or worn-out assets, assets that are
no longer useful or scrap, in each case in the ordinary course of business,
(ii) the sale or discount by the Borrower or any Subsidiary, in each case
without recourse and in the ordinary course of business, of overdue accounts
receivable arising in the ordinary course of business, but only in connection
with the compromise or collection thereof consistent with customary industry
practice (and not as part of any bulk sale or financing transaction), (iii)
sales of accounts receivable or interests therein and other customary assets in
Securitization Transactions permitted under Section 6.01(k), (iv) the
Disposition by any Subsidiary that is not a Loan Party of its assets that do
not constitute Collateral in connection with a foreclosure by the applicable
lenders with respect to any Indebtedness of such Subsidiary to the extent that
such assets are collateral security for such 

 65
 

Indebtedness, (v) the
licensing of intellectual property in the ordinary course of business, (vi) the
settlement, release or surrender of tort or other litigation claims and (vii)
if at the time thereof and immediately after giving effect thereto no Event of
Default or Default shall have occurred and be continuing, (x) the merger or
consolidation of any wholly-owned Subsidiary into or with the Borrower in
a transaction in which the Borrower is the surviving corporation, (y) the
merger or consolidation of any Subsidiary into or with any other Subsidiary in
a transaction in which the surviving entity is a Subsidiary (provided
that (A) the Borrower shall own, directly or indirectly, beneficially and of
record, Equity Interests representing a percentage of the aggregate ordinary
voting power and aggregate equity value represented by the issued and
outstanding Equity Interest in such surviving Subsidiary that is equal to or
greater than the percentage of the aggregate ordinary voting power and the
aggregate equity value represented by the issued and outstanding Equity
Interests that were owned immediately prior to such merger or consolidation,
directly or indirectly, beneficially and of record, by the Borrower in such
other merged or consolidated Subsidiary, (B) if any party to any such
transaction is a Loan Party, the surviving entity of such transaction shall be a
Loan Party, (C) if any party to any such transaction is a Domestic Subsidiary,
the surviving entity of such transaction shall be a Domestic Subsidiary and (D) if any person other than the Borrower or a
wholly-owned Subsidiary receives any consideration in connection with such
transaction, such transaction shall comply with the provisions of Section
6.04, if applicable) and (z) Permitted Acquisitions or other Investments by
the Borrower or any Subsidiary that are expressly permitted by Section 6.04.

(b)           Engage in any Asset Sale otherwise permitted under paragraph
(a) above unless

(i)            in the case of other than Exempted Asset Sales, (A) such
Asset Sale is for consideration at least 75% of which is cash (and no portion
of the remaining consideration shall be in the form of Indebtedness of the
Borrower or any Subsidiary), (B) such consideration
is at least equal to the fair market value of the assets being Disposed of and
(C) the fair market value of all assets Disposed of pursuant to this paragraph
(b)(i) shall not exceed

(I)            $3,000,000 in any fiscal year, and

(II)           (a) in the case of other than the
Foreign Target, $10,000,000 in the aggregate and (b) in the case of the Foreign
Target, in the aggregate, an amount equal to (i) at the Borrower’s election (as
set forth in a certificate delivered to the Administrative Agent pursuant to Section
5.04(c)(ii)), either (x) the aggregate amount of Capital Expenditures
permitted for the Foreign Target pursuant to Section 6.10(b) or (y) the
amount of Investments made to the Foreign Target pursuant to Section 6.04(a)
minus (ii) the fair market value
(determined in good faith by the Borrower) of assets transferred to the Foreign
Target; or

(ii)           such
Asset Sale is a Permitted Asset Swap; or

(iii)          in
the case of Exempted Asset Sales, the aggregate cash consideration and the
value (determined in good faith by the Borrower) of the non-cash consideration
received does not exceed $6,000,000.

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SECTION 6.06.      Restricted Payments; Restrictive
Agreements.  (a)  Declare or make, or agree to declare or make,
directly or indirectly, any Restricted Payment (including pursuant to any
Synthetic Purchase Agreement), or incur any obligation (contingent or
otherwise) to do so; provided, however, that (i) any Subsidiary
may declare and pay dividends or make other distributions, including in the
form of additional Equity Interests, ratably to its equity holders, (ii) so long as no Event of Default or Default shall have
occurred and be continuing or would result therefrom, the Borrower may, or may
pay dividends or make other distributions to Holdings so that Holdings may,
repurchase its Equity Interests owned by employees of Holdings, the Borrower or
the Subsidiaries or make payments to employees of Holdings, the Borrower or the
Subsidiaries upon termination of employment in connection with the exercise of
stock options, stock appreciation rights or similar equity incentives or equity
based incentives pursuant to management incentive plans or in connection with
the death or disability of such employees or make customary and reasonable
salary and bonus and other benefits payments to officers, employees and
consultants of Holdings or payments of customary fees and expenses of members
of the board of directors of Holdings in an aggregate amount for this clause
(ii) not to exceed $1,500,000 in any fiscal year (it being agreed that any
such amount not utilized in any fiscal year may be carried forward and utilized
in any subsequent fiscal year so long as the aggregate amount of such
repurchases or payments pursuant to this clause (ii) shall not exceed
$3,000,000 in any fiscal year), (iii) the Borrower may make Restricted Payments
to Holdings (x) in an amount not to exceed, when taken together with the
aggregate amount of all loans or advances made pursuant to Section 6.04(i)
for such purpose, $1,000,000 in any fiscal year to the extent necessary to pay
general corporate and overhead expenses incurred by Holdings in the ordinary
course of business and (y) in an amount necessary to pay the Tax liabilities of
Holdings directly attributable to (or arising as a result of) the operations of
the Borrower and the Subsidiaries pursuant to the Tax Sharing Agreement, as
such agreement exists on the Closing Date and with such changes after the
Closing Date as may be approved by the Administrative Agent; provided
that all Restricted Payments made to Holdings pursuant to clause (iii)
shall be used by Holdings for the purpose specified herein within 20 days of
the receipt thereof, (iv) so long as no Event of Default or Default shall have
occurred and be continuing or would result therefrom, the Borrower may pay
dividends or make other distributions to Holdings so that Holdings may pay
those fees, costs and expenses that are expressly permitted by clause (c)
of Section 6.07 and (v) so long as no Event of Default or Default shall
have occurred and be continuing or would result therefrom, the Borrower may
make Restricted Payments to Holdings, and Holdings may, in turn, make such
Restricted Payments to its equity holders so long as (A) the Leverage Ratio
would be 3.50 to 1.00 or less as of the most recently completed period ending
prior to such transaction for which the financial statements and certificates
required by Section 5.04(a) or 5.04(b) were required to be
delivered or for which comparable financial statements have been filed with or
furnished to the Securities and Exchange Commission, after giving pro forma effect to such transaction and to any other event
occurring after such period as to which pro forma
recalculation is appropriate as if such transaction had occurred as of the
first day of such period and (B) at the time of, after giving effect to, such
transaction, there shall be at least $7,500,000 of unused and available
Revolving Credit Commitments under and as defined in the First Lien Credit
Agreement.

(b)           Enter into, incur or permit to exist any agreement or
other arrangement that prohibits, restricts or imposes any condition upon (i)
the ability of Holdings, the Borrower or any Subsidiary to create, incur or
permit to exist any Lien upon any of its property or assets, or (ii) 

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the ability of any Subsidiary to pay
dividends or other distributions with respect to any of its Equity Interests or
to make or repay loans or advances to the Borrower or any other Subsidiary or
to Guarantee Indebtedness of the Borrower or any other Subsidiary; provided
that (A) the foregoing shall not apply to restrictions and conditions imposed
by law or by any Loan Document, (B) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a
Subsidiary or its assets pending such sale, provided such restrictions
and conditions apply only to the Subsidiary or its assets that are to be sold
and such sale is permitted hereunder, (C) the foregoing shall not apply to
restrictions and conditions imposed on any Subsidiary that is not a Loan Party
by the terms of any Indebtedness of such Subsidiary permitted to be incurred
hereunder, (D) clause (i) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Indebtedness, (E) clause
(i) of the foregoing shall not apply to restrictions or conditions imposed
by the Subordinated Note Documents as in effect on the Closing Date, (F) clause
(i) of the foregoing shall not apply to customary provisions in leases and
other contracts restricting the assignment thereof and (G) the foregoing shall
not apply to restrictions and conditions imposed by the First Lien Loan
Documents with respect to any First Lien Indebtedness (or any refinancing of
such First Lien Indebtedness that is permitted hereunder).

SECTION 6.07.      Transactions with Affiliates.  Except for transactions by or among Loan
Parties or transactions with the Foreign Target pursuant to Sections 6.01,
6.04, 6.05 and 6.10, sell or transfer any property or
assets to, or purchase or acquire any property or assets from, or otherwise
engage in any other transactions with, any of its Affiliates, except that (a) Holdings, the Borrower or any Subsidiary may engage in
any of the foregoing transactions in the ordinary course of business at prices
and on terms and conditions not less favorable to Holdings, the Borrower or
such Subsidiary than could be obtained on an arm’s-length basis from unrelated
third parties, (b) Restricted Payments may be made to the extent provided in Section
6.06, (c) so long as no Event of Default or Default shall have occurred and
be continuing or would result therefrom, fees may be paid to the Sponsor or any
of its Affiliates in an aggregate amount not to exceed $1,875,000 in any fiscal
year plus all reasonable out-of-pocket costs and expenses and indemnification
amounts incurred by the Sponsor or any such Affiliate, in each case in
connection with their performance of management, consulting, monitoring,
financial advisory or other services with respect to Holdings, the Borrower and
the Subsidiaries, (d) payments may be made under the Tax Sharing Agreement, as
such agreement exists on the Closing Date and with such changes after the
Closing Date as may be approved by the Administrative Agent, and (e) the
Transactions may be consummated, including the making of any payments on the
Closing Date in connection therewith.

SECTION 6.08.      Business of Holdings, the Borrower and
Subsidiaries; Limitation on Hedging Agreements.  (a) 
With respect to Holdings, engage in any business activities or have any
assets or liabilities other than (i) its ownership of the Equity Interests in
the Borrower, (ii) liabilities incidental thereto, including its liabilities
pursuant to the Loan Documents or the First Lien Loan Documents with respect to
any First Lien Indebtedness (or any refinancing of such First Lien Indebtedness
that is permitted hereunder), and (iii) Permitted Holdings Indebtedness.

(b)           With respect to the Borrower and the Subsidiaries, engage
at any time in any business or business activity other than a Permitted
Business.

 68
 

(c)           Enter into any Hedging Agreement other than (a) any such
agreement or arrangement entered into in the ordinary course of business and
consistent with prudent business practice to hedge or mitigate risks to which
the Borrower or any Subsidiary is exposed in the conduct of its business or the
management of its liabilities or (b) any such agreement entered into to hedge
against fluctuations in interest rates or currency incurred in the ordinary
course of business and consistent with prudent business practice; provided
that in each case such agreements or arrangements shall not have been entered
into for speculation purposes.

SECTION 6.09.      Other Indebtedness and Agreements.  (a) 
Permit any waiver, supplement, modification, amendment, termination or
release of any indenture, instrument or agreement pursuant to which any
Material Indebtedness of any Loan Party is outstanding if the effect of such
waiver, supplement, modification, amendment, termination or release would
materially increase the obligations of the obligor or confer additional
material rights on the holder of such Indebtedness in a manner adverse to any
Loan Party or the Lenders; provided that, without limiting the
foregoing, waivers, supplements, modifications, amendments, terminations and
releases made in accordance with the Intercreditor Agreement shall be permitted
hereunder.

(b)           Make any distribution, whether in cash, property,
securities or a combination thereof, other than regular scheduled payments of
principal and interest as and when due (to the extent not prohibited by
applicable subordination provisions), in respect of, or pay, or offer or commit
to pay, or directly or indirectly (including pursuant to any Synthetic Purchase
Agreement) redeem, repurchase, retire or otherwise acquire for consideration, or
set apart any sum for the aforesaid purposes, any Indebtedness that is
subordinated to the Obligations, including the Subordinated Notes.

SECTION 6.10.      Capital Expenditures.  Permit the aggregate amount
of Capital Expenditures made by the Borrower and the Subsidiaries to exceed (a)
in the case of other than by the Foreign Target, $6,000,000 in any fiscal year;
provided that the amount of permitted Capital Expenditures set forth
above in respect of any fiscal year commencing with the fiscal year ending on December
31, 2005, shall be increased (but not decreased) by (i) the amount of unused
Capital Expenditures permitted pursuant to this clause (a) for the
immediately preceding fiscal year less (ii) an amount equal to unused Capital
Expenditures under this clause (a) carried forward to such preceding
fiscal year, and (b) in the case of the Foreign Target, $10,000,000 (unless
otherwise reduced by the amount of Asset Sales to the Foreign Target pursuant
to Section 6.05(b)(i)) per each fiscal year 2006, 2007 and 2008 (provided,
that the amount of Capital Expenditures incurred pursuant to this clause (b)
shall not exceed $25,000,000 (unless otherwise reduced by the amount of Asset
Sales to the Foreign Target pursuant to Section 6.05(b)(i)) at any time
outstanding during the term of this Agreement).

SECTION 6.11.      [Intentionally Omitted].

SECTION 6.12.      Senior Leverage Ratio.  On or after December 31, 2006, permit the
Senior Leverage Ratio on the last day of any fiscal quarter during any period
set forth below to be greater than the ratio set forth opposite such period
below:

 69
 

 

	
  Period

  	
   

  	
  Ratio

  
	
  December 31,
  2006

  	
   

  	
  5.50 to 1.00

  
	
  March 31, 2007

  	
   

  	
  5.50 to 1.00

  
	
  June 30, 2007

  	
   

  	
  5.75 to 1.00

  
	
  September 30,
  2007

  	
   

  	
  5.50 to 1.00

  
	
  December 31,
  2007

  	
   

  	
  5.00 to 1.00

  
	
  March 31, 2008

  	
   

  	
  4.75 to 1.00

  
	
  June 30, 2008

  	
   

  	
  4.50 to 1.00

  
	
  September 30,
  2008

  	
   

  	
  4.25 to 1.00

  
	
  December 31,
  2008

  	
   

  	
  4.00 to 1.00

  
	
  March 31, 2009
  through December 31, 2009

  	
   

  	
  3.25 to 1.00

  
	
  Thereafter

  	
   

  	
  3.00 to 1.00

  

 

SECTION 6.13.      [Intentionally Omitted].  

SECTION 6.14.      Fiscal Year. 
With respect to Holdings or the Borrower, change its
fiscal year-end to a date other than December 31.

ARTICLE
VII

EVENTS OF DEFAULT

SECTION 7.01. 
In case of the happening of any of the following events (“Events of
Default”):

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

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

(c)           default
shall be made in the payment of any interest on any Loan or any fee or any
other amount (other than an amount referred to in (b) above) due
under any Loan Document, when and as the same shall become due and payable, and
such default shall continue unremedied for a period of three Business Days;

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

(e)           default
shall be made in the due observance or performance by Holdings, the Borrower or
any Subsidiary of any covenant, condition or agreement contained in any Loan
Document (other than those specified in clauses (b), (c) or (d)
above) and such default shall continue unremedied for a period of 30 days
following the earlier of 

 70
 

(i) knowledge thereof by a Responsible Officer of a Loan Party and
(ii) written notice thereof by the Administrative Agent or any Lender to a Loan
Party;

(f)            Holdings,
the Borrower or any Subsidiary shall (i) fail to pay any principal or interest,
regardless of amount, due in respect of any Material Indebtedness, when and as
the same shall become due and payable (after giving effect to any applicable
grace period), or (ii) any other event or condition occurs that results in any
Material Indebtedness becoming due prior to its scheduled maturity or that
enables or permits (with or without the giving of notice, the lapse of time or
both) the holder or holders of any Material Indebtedness or any trustee or
agent on its or their behalf to cause any Material Indebtedness to become due,
or to require the prepayment, repurchase, redemption or defeasance thereof,
prior to its scheduled maturity; provided that this clause (ii)
shall not apply to secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing such
Indebtedness; and provided, further, an Event of Default under
and as defined in the First Lien Credit Agreement (a “First Lien Event of
Default”) shall not constitute an Event of Default under this paragraph
until the earlier to occur of (x) a period of 90 days has elapsed following
notice of such First Lien Event of Default from the administrative agent or any
lender under the First Lien Credit Agreement to the Borrower, or from the
Borrower to such administrative agent or any such lender, and (y) the
acceleration of the maturity of any of the loans or the termination of any of
the commitments under the First Lien Credit Agreement as a result of such First
Lien Event of Default;

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

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

 71
 

pay its debts as they become due or (vii) take any action for the
purpose of effecting any of the foregoing;

(i)            one
or more judgments for the payment of money in an aggregate amount in excess of
$6,000,000 (excluding therefrom any amount covered by insurance as to which the
applicable insurer has acknowledged in writing its obligation to cover) shall
be rendered against Holdings, the Borrower, any Subsidiary or any combination
thereof and the same shall remain undischarged for a period of 30 consecutive
days during which execution shall not be effectively stayed, or any action
shall be legally taken by a judgment creditor to levy upon assets or properties
of Holdings, the Borrower or any Subsidiary to enforce any such judgment;

(j)            an
ERISA Event described in clause (b) of the definition thereof shall have
occurred or any other ERISA Event shall have occurred that, when taken together
with all other such ERISA Events, could reasonably be expected to result in
liability of the Borrower and its ERISA Affiliates in an aggregate amount
exceeding $6,000,000;

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

(l)            any
Lien purported to be created under any Security Document shall cease to be, or
shall be asserted by the Borrower or any other Loan Party not to be, a valid,
perfected and, with respect to the Secured Parties, first priority (subject to
the Lien priorities set forth in the Intercreditor Agreement and except as
otherwise expressly provided in this Agreement or such Security Document) Lien
on any material Collateral covered thereby, except to the extent that any such
loss of perfection or priority results from the failure of the First Lien
Collateral Agent, as bailee for the Collateral Agent pursuant to the
Intercreditor Agreement, to maintain possession of certificates representing
Equity Interests pledged under the Guarantee and Collateral Agreement; or

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

then, and in every such event (other than an event
with respect to Holdings or the Borrower described in paragraph (g) or (h)
above), and at any time thereafter during the continuance of such event the
following action may be taken, in each case subject to the terms of the
Intercreditor Agreement: the Administrative Agent may, and at the request of
the Required Lenders shall, declare the Loans then outstanding to be forthwith
due and payable in whole or in part, whereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and any
unpaid accrued fees and all other liabilities of the Borrower accrued hereunder
and under any other Loan Document, shall become forthwith due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Borrower, anything contained herein or
in any other Loan Document (other than the Intercreditor Agreement) to the contrary
notwithstanding, and the Administrative Agent and the Collateral Agent shall
have the right to take all or any actions and 

 72
 

exercise any remedies available to a secured party
under the Security Documents or applicable law or in equity; and in any event
with respect to Holdings or the Borrower described in paragraph (g) or (h)
above, the principal of the Loans then outstanding, together with accrued
interest thereon and any unpaid accrued fees and all other liabilities of the
Borrower accrued hereunder and under any other Loan Document, shall
automatically become due and payable, without presentment, demand, protest or
any other notice of any kind, all of which are hereby expressly waived by the
Borrower, anything contained herein or in any other Loan Document (other than
the Intercreditor Agreement) to the contrary notwithstanding, and the
Administrative Agent and the Collateral Agent shall have the right to take all
or any actions and exercise any remedies available to a secured party under the
Security Documents or applicable law or in equity.  The Required Lenders may, by notice to the
Administrative Agent, rescind an acceleration of the Loans described in the
first clause above in this paragraph.

Notwithstanding anything
to the contrary contained in this Section 7.01, in the event the
Borrower fails to comply with any financial covenant contained in Section
6.12 Holdings shall have the right, no later than ten (10) Business Days
after the delivery of the financial statements and certificates required by Section
5.04(a) or (b), as applicable, with respect to such applicable
fiscal quarter, to issue Cure Securities for cash in an aggregate amount not in
excess of the lesser of (x) the minimum amount necessary to cure the relevant
failure to comply with such financial covenant and (y) $15,000,000, the net
cash proceeds of which shall be contributed to the common equity capital of the
Borrower (collectively, the “Cure Right”), and upon the receipt by the
Borrower of such cash (the “Cure Amount”), such financial covenant shall
be recalculated giving effect to the following pro forma adjustments:

(n)           Consolidated
EBITDA shall be increased, in accordance with the definition thereof, solely
for the purpose of measuring such financial covenant and not for any other
purpose under this Agreement (for the avoidance of doubt, Consolidated EBITDA
shall only be adjusted for the purposes of the quarterly tests pursuant to Section
6.12 and shall not be increased for purposes of determining any other
covenant or definition which incorporates such covenants), by an amount equal
to the Cure Amount;

(o)           if,
after giving effect to the foregoing recalculations, the Borrower shall then be
in compliance with the requirements of such financial covenant, the Borrower
shall be deemed to have satisfied the requirements of such financial covenant
as of the relevant date of determination with the same effect as though there
had been no failure to comply therewith at such date, and the applicable breach
or default of such financial covenant which had occurred shall be deemed not to
have occurred in the first instance for all purposes of this Agreement and the
Loan Documents;

(p)           to
the extent that the Cure Amount proceeds are used to repay Indebtedness, such
Indebtedness shall not be deemed to have been repaid for purposes of
calculating the financial covenants set forth in Section 6.12 for the
period with respect to which such Compliance Certificate applies; and

(q)           to
the extent a fiscal quarter ended for which such financial covenant is initially
recalculated as a result of a Cure Right is included in the calculation of a

 73

  financial
covenant in a subsequent fiscal period, the Cure Amount shall be included in
the amount of Consolidated EBITDA for such initial fiscal quarter;
  provided
that the Cure Rights shall not be exercised more than twice in any four quarter
period.
  Notwithstanding anything
herein to the contrary, the lien and security interests granted to the
Administrative Agent or the Collateral Agent pursuant to the Security Documents
and the exercise of any right or remedy by the Administrative Agent or the
Collateral Agent thereunder are subject to the terms of the Intercreditor
Agreement.
  ARTICLE
VIII
  

THE AGENTS AND THE ARRANGER
  Each of the Lenders hereby irrevocably appoints each
of the Administrative Agent and the Collateral Agent (for purposes of this Article
VIII, the Administrative Agent and the Collateral Agent are referred to
collectively as the “Agents”) its agent and authorizes the Agents to
take such actions on its behalf and to exercise such powers as are delegated to
such Agent by the terms of the Loan Documents, together with such actions and
powers as are reasonably incidental thereto. 
Without limiting the generality of the foregoing, the Agents are hereby
expressly authorized by the Lenders to execute any and all documents (including
releases and the Security Documents) with respect to the Collateral and the
rights of the Secured Parties with respect thereto, as contemplated by and in
accordance with the provisions of this Agreement and the Security
Documents.  The Lenders acknowledge and
agree that the Administrative Agent shall also act, subject to and in
accordance with the terms of the Intercreditor Agreement, as administrative
agent for the lenders under the First Lien Credit Agreement.
  Each bank serving as an Agent hereunder shall have the
same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not an Agent, and such bank and its
Affiliates may accept deposits from, lend money to and generally engage in any
kind of business with Holdings, the Borrower or any Subsidiary or any of their
respective Affiliates as if it were not an Agent hereunder.
  No Agent shall have any duties or obligations except
those expressly set forth in the Loan Documents.  Without limiting the generality of the
foregoing, (a) no Agent shall be subject to any fiduciary or other implied
duties, regardless of whether a Default has occurred and is continuing, (b) no
Agent shall have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly
contemplated hereby that the Administrative Agent or the Collateral Agent is
required to exercise in writing by the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.08), and (c) except as expressly set forth in the
Loan Documents, no Agent shall have any duty to disclose, nor shall it be
liable for the failure to disclose, any information relating to Holdings, the
Borrower or any of the Subsidiaries that is communicated to or obtained by the
bank serving as any Agent or any of its Affiliates in any capacity.  The Administrative Agent and the Collateral
Agent shall not be liable for any action taken or not taken by it with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as
provided 

 74
 

    in Section 9.08)
or in the absence of its own gross negligence or willful misconduct.  No Agent shall be deemed to have knowledge of
any Default unless and until written notice thereof is given to such Agent by
Holdings, the Borrower or a Lender, and no Agent shall be responsible for or
have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with any Loan Document, (ii) the
contents of any certificate, report or other document delivered thereunder or
in connection therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of
any Loan Document or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere in
any Loan Document, other than to confirm receipt of items expressly required to
be delivered to such Agent.
  Each Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing believed by it to be
genuine and to have been signed or sent by the proper person.  Each Agent may also rely upon any statement
made to it orally or by telephone and believed by it to have been made by the
proper person, and shall not incur any liability for relying thereon.  Each Agent may consult with legal counsel
(who may be counsel for Holdings or 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.
  Each Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by it.  Each Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
by or through their respective Related Parties. 
The exculpatory provisions of the preceding paragraphs shall apply to any
such sub-agent and to the Related Parties of each Agent and any such sub-agent,
and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as Agent.
  Subject to the appointment and acceptance of a
successor Agent as provided below, each Agent may resign at any time by
notifying the Lenders and the Borrower. 
Upon any such resignation of the Administrative Agent or the Collateral
Agent, the Required Lenders shall have the right to appoint a successor, subject
to the Borrower’s approval (not to be unreasonably withheld or delayed) so long
as no Default or Event of Default shall have occurred and be continuing.  If no successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Agent gives notice of its resignation, then the retiring
Agent may, on behalf of the Lenders, appoint a successor Agent which shall be a
bank with an office in New York, New York, or an Affiliate of any such bank.  Upon the acceptance of its appointment as
Agent hereunder by a successor, such successor shall succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Agent, and the retiring Agent shall be discharged from its duties and
obligations hereunder.  The fees payable
by the Borrower to a successor Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such successor.  After an Agent’s resignation hereunder, the
provisions of this Article and Section 9.05 shall continue in
effect for the benefit of such retiring Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while acting as Agent. 
Notwithstanding the foregoing, at the election of the Agent, the Agent
may resign from its agency capacity as set 

 75
 

    forth above and retain
its duties solely as paying agent (in such capacity, the “Paying Agent”)
with respect to the receipt and payment of funds hereunder.  In such event, the Paying Agent shall be
entitled to all of the rights and benefits afforded to the Administrative Agent
under the terms of this Article VIII.
  The Arranger, in its capacity as such, shall have no
duties or responsibilities, and shall incur no liability, under this Agreement
or any other Loan Document.
  Each Lender acknowledges that it has, independently
and without reliance upon the Agents, the Arranger or any other Lender and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will,
independently and without reliance upon the Agents, the Arranger or any other
Lender and based on such documents and information as it shall from time to
time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement or any other Loan Document,
any related agreement or any document furnished hereunder or thereunder.
  To the extent required by any applicable law, the
Administrative Agent may withhold from any interest payment to any Lender an
amount equivalent to any applicable withholding tax.  If the Internal Revenue Service or any other
Governmental Authority asserts a claim that the Administrative Agent did not
properly withhold tax from amounts paid to or for the account of any Lender
because the appropriate form was not delivered or was not properly executed or
because such Lender failed to notify the Administrative Agent of a change in
circumstance which rendered the exemption from, or reduction of, withholding
tax ineffective or for any other reason, such Lender shall indemnify the
Administrative Agent fully for all amounts paid, directly or indirectly, by the
Administrative Agent as tax or otherwise, including any penalties or interest
and together with all expenses (including legal expenses, allocated internal
costs and out-of-pocket expenses) incurred.
  ARTICLE
IX
  

MISCELLANEOUS
  SECTION 9.01.      Notices.  Notices and other communications provided
for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by fax, as
follows:
  (a)           if to Holdings or the Borrower, to it
at True Temper Sports, Inc., 8275 Tournament Drive, Suite 200, Memphis, TN
38125, Attention of President and Chief Financial Officer (Fax No. (901)
746-2162), with a copy to Andrew Mattei, Esq. 
at Mayer, Brown, Rowe & Maw LLP, 1675 Broadway, New York, NY 10019
(Fax No.  (212) 849-5572);
  (b)           if to the Administrative Agent or the
Collateral Agent, to Credit Suisse, Eleven Madison Avenue, New York, NY 10010,
Attention of Loan Services Manager (Fax No. (212) 325-8304); and

 76
 

    (c)           if to a Lender, to it at its address
(or fax number) set forth in the Lender Addendum or the Assignment and
Acceptance pursuant to which such Lender shall have become a party hereto.
  All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt if delivered by hand or
overnight courier service or sent by fax or on the date five Business Days
after dispatch by certified or registered mail if mailed, in each case
delivered, sent or mailed (properly addressed) to such party as provided in
this Section 9.01 or in accordance with the latest unrevoked
direction from such party given in accordance with this Section 9.01.
  SECTION 9.02.      Survival of Agreement.  All covenants, agreements, representations
and warranties made by Holdings or the Borrower herein and in the certificates
or other instruments prepared or delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the Lenders and shall survive the making by the Lenders of the
Loans, regardless of any investigation made by the Lenders or on their behalf,
and shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement or any other Loan Document is outstanding and unpaid and so long as
the Commitments have not been terminated. 
The provisions of Sections 2.14, 2.16, 2.20
and 9.05 shall remain operative and in full
force and effect regardless of the expiration of the term of this Agreement,
the consummation of the transactions contemplated hereby, the repayment of any
of the Loans, the expiration of the Commitments, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan
Document or any investigation made by or on behalf of the Administrative Agent,
the Collateral Agent, the Arranger or any Lender.
  SECTION 9.03.      Binding Effect.  This Agreement shall become effective when it
shall have been executed by each of the parties hereto and when the
Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto.
  SECTION 9.04.      Successors and Assigns.  (a) 
Whenever in this Agreement any of the parties hereto is referred to,
such reference shall be deemed to include the permitted successors and assigns
of such party; and all covenants, promises and agreements by or on behalf of
Holdings, the Borrower, the Administrative Agent, the Collateral Agent or the
Lenders that are contained in this Agreement shall bind and inure to the
benefit of their respective successors and assigns.
  (b)           Each Lender may assign to one or more assignees all or a
portion of its interests, rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing
to it); provided, however, that (i) the Administrative Agent
must give its prior written consent to such assignment (which consent shall not
be unreasonably withheld or delayed) other than any assignment of Loans to a
Lender or an Affiliate or Related Fund of a Lender, (ii) the Borrower must give
its prior written consent to such assignment (which consent shall not be
unreasonably withheld or delayed) other than any assignment of Loans to a
Lender or an Affiliate or Related Fund of a Lender; provided that the
consent of the Borrower shall not be required to any such assignment during the
continuance of any Event of 

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    Default,
(iii) the amount of the Commitment of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than $1,000,000 (or, if less, the entire remaining amount of such
Lender’s Commitment) and shall be in an amount that is an integral multiple of
$1,000,000 (or the entire remaining amount of such Lender’s Commitment), unless
otherwise agreed by the Administrative Agent, (iv) the parties to each
such assignment shall execute and deliver to the Administrative Agent an
Assignment and Acceptance (such Assignment and Acceptance to be
(A) electronically executed and delivered to the Administrative Agent via
an electronic settlement system then acceptable to the Administrative Agent,
which shall initially be the settlement system of ClearPar, LLC, or
(B) manually executed and delivered together with a processing and
recordation fee of $3,500) and (v) the assignee, if it shall not be a
Lender immediately prior to the assignment, shall deliver to the Administrative
Agent an Administrative Questionnaire. 
Upon acceptance and recording pursuant to paragraph (e) of
this Section 9.04, from and after the effective date specified in each
Assignment and Acceptance, (A) the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Acceptance, have the rights and obligations of a Lender under this Agreement
and (B) the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering
all or the remaining portion of an assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.14, 2.16,
2.20 and 9.05, as well as to any fees
accrued for its account and not yet paid).
  (c)           By
executing and delivering an Assignment and Acceptance, the assigning Lender
thereunder and the assignee thereunder shall be deemed to confirm to and agree
with each other and the other parties hereto as follows: (i) such
assigning Lender warrants that it is the legal and beneficial owner of the interest
being assigned thereby free and clear of any adverse claim and that its
Commitment, and the outstanding balance of its Loans, in each case without
giving effect to assignments thereof which have not become effective, are as
set forth in such Assignment and Acceptance, (ii) except as set forth in (i)
above, such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement,
any other Loan Document or any other instrument or document furnished pursuant
hereto, or the financial condition of Holdings, the Borrower or any Subsidiary
or the performance or observance by Holdings, the Borrower or any Subsidiary of
any of its obligations under this Agreement, any other Loan Document or any
other instrument or document furnished pursuant hereto; (iii) such
assignee represents and warrants that it is legally authorized to enter into
such Assignment and Acceptance; (iv) such assignee confirms that it has
received a copy of this Agreement, together with copies of the most recent
financial statements referred to in Section 3.05(a) or delivered
pursuant to Section 5.04 and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into such Assignment and Acceptance; (v) such
assignee will independently and without reliance upon the Administrative Agent,
the Collateral Agent, the Arranger, such assigning Lender or any other Lender
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement; (vi) such assignee appoints and authorizes the
Administrative Agent and the Collateral Agent to take such action as agent on 

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    its behalf and to exercise such powers under this Agreement as are
delegated to the Administrative Agent and the Collateral Agent, respectively,
by the terms hereof, together with such powers as are reasonably incidental
thereto; and (vii) such assignee agrees that it will perform in accordance
with their terms all the obligations which by the terms of this Agreement are
required to be performed by it as a Lender.
  (d)           The
Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices in The City of New York a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitment of, and principal
amount of the Loans owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). 
The entries in the Register shall be conclusive absent manifest error
and the Borrower, the Administrative Agent, the Collateral Agent and the
Lenders may treat each person whose name is recorded in the Register pursuant
to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by the Borrower, the
Collateral Agent and any Lender, at any reasonable time and from time to time
upon reasonable prior notice.
  (e)           Upon
its receipt of a duly completed Assignment and Acceptance executed by an
assigning Lender and an assignee, an Administrative Questionnaire completed in
respect of the assignee (unless the assignee shall already be a Lender
hereunder) and the written consent of the Administrative Agent, the
Administrative Agent shall (i) accept such Assignment and Acceptance and (ii)
record the information contained therein in the Register.  No assignment shall be effective unless it
has been recorded in the Register as provided in this paragraph (e).
  (f)            Each
Lender may without the consent of the Borrower or the Administrative Agent sell
participations to one or more banks or other entities in all or a portion of
its rights and obligations under this Agreement (including all or a portion of
its Commitment and the Loans); provided, however, that
(i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, (iii) the participating
banks or other entities shall be entitled to the benefit of the cost protection
provisions contained in Sections 2.14, 2.16 and 2.20 to
the same extent as if they were Lenders (but, with respect to any particular
participant, to no greater extent than the Lender that sold the participation
to such participant) and (iv) the Borrower, the Administrative Agent and
the Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement, and
such Lender shall retain the sole right to enforce the obligations of the
Borrower relating to the Loans and to approve any amendment, modification or
waiver of any provision of this Agreement (other than amendments, modifications
or waivers decreasing any fees payable hereunder or the amount of principal of
or the rate at which interest is payable on the Loans (in each case to the
extent participated in by such participant), extending any scheduled principal
payment date or date fixed for the payment of interest on the Loans (in each
case to the extent participated in by such participant), increasing or
extending the Commitments (in each case to the extent participated in by such
participant) or releasing any Guarantor or all or any substantial part of the
Collateral).
  (g)           Any
Lender or participant may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 9.04,
disclose to 

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    the assignee or participant or proposed assignee or participant any
information relating to the Borrower furnished to such Lender by or on behalf
of the Borrower; provided that, prior to any such disclosure of
information designated by the Borrower as confidential, each such assignee or
participant or proposed assignee or participant shall execute an agreement
whereby such assignee or participant shall agree (subject to customary
exceptions) to preserve the confidentiality of such confidential information on
terms no less restrictive than those applicable to the Lenders pursuant to Section 9.16.
  (h)           Any
Lender may at any time assign all or any portion of its rights under this
Agreement to secure extensions of credit to such Lender or in support of
obligations owed by such Lender and, in the case of any Lender that is a fund
that invests in bank loans, such Lender may pledge all or any portion of its
rights under this Agreement to any holder of, trustee for, or other
representative of any holders of, obligations owed or securities issued by such
fund as security for such obligations or securities; provided that no
such assignment or pledge described in this clause (h) shall
release a Lender from any of its obligations hereunder or substitute any such
assignee or pledgee for such Lender as a party hereto.
  (i)            Notwithstanding
anything to the contrary contained herein, any Lender (a “Granting Lender”)
may grant to a special purpose funding vehicle (an “SPC”), identified as
such in writing from time to time by the Granting Lender to the Administrative
Agent and the Borrower, the option to provide to the Borrower all or any part
of any Loan that such Granting Lender would otherwise be obligated to make to
the Borrower pursuant to this Agreement; provided that (i) nothing
herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC elects not to exercise such option or
otherwise fails to provide all or any part of such Loan, the Granting Lender
shall be obligated to make such Loan pursuant to the terms hereof.  The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPC
shall be liable for any indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Lender).  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior
indebtedness of any SPC, it will not institute against, or join any other
person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof.  In
addition, notwithstanding anything to the contrary contained in this Section 9.04,
any SPC may (i) with notice to, but without the prior written consent of,
the Borrower and the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loans to the Granting
Lender or to any financial institutions (consented to by the Borrower and
Administrative Agent) providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Loans and
(ii) disclose on a confidential basis any non-public information relating
to its Loans to any rating agency, commercial paper dealer or provider of any
surety, guarantee or credit or liquidity enhancement to such SPC.
  (j)            Neither
Holdings nor the Borrower shall assign or delegate any of its rights or duties
hereunder without the prior written consent of the Administrative Agent and
each Lender, and any attempted assignment without such consent shall be null
and void.

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    SECTION 9.05.      Expenses;
Indemnity.  (a)  Holdings and the Borrower agree, jointly and
severally, to pay all reasonable out-of-pocket costs and expenses incurred by
the Administrative Agent, the Collateral Agent and the Arranger in connection
with the syndication of the credit facility provided for herein and the
preparation and administration of this Agreement and the other Loan Documents
or in connection with any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions hereby or thereby
contemplated shall be consummated) or incurred by the Administrative Agent, the
Arranger or any Lender in connection with the enforcement or protection of its
rights in connection with this Agreement and the other Loan Documents or in
connection with the Loans made hereunder, including in each case the fees and
disbursements of Latham & Watkins LLP, counsel for the Administrative Agent
and the Collateral Agent, and, in connection with any such enforcement or
protection, the reasonable fees and disbursements of any counsel for the
Administrative Agent or the Collateral Agent and one other transaction counsel
acting on behalf of the Arranger and the Lenders, together with any other local
and special counsel reasonably required in connection with such enforcement or
protection.
  (b)           Holdings
and the Borrower agree, jointly and severally, to indemnify the Administrative
Agent, the Collateral Agent, the Arranger, each Lender and each Related Party
of any of the foregoing persons (each such person being called an “Indemnitee”)
against, and to hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related costs and expenses, including reasonable
counsel fees and disbursements, incurred by or asserted against any Indemnitee
arising out of, in any way connected with, or as a result of (i) the execution
or delivery of this Agreement or any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties thereto of their
respective obligations thereunder or the consummation of the Transactions and
the other transactions contemplated hereunder or thereby, (ii) the use of the
proceeds of the Loans, (iii) any claim, litigation, investigation or proceeding
relating to any of the foregoing, whether or not any Indemnitee is a party
thereto, or (iv) any actual or alleged presence or Release of Hazardous
Materials on any property owned or operated by Holdings, the Borrower or any of
the Subsidiaries, or any Environmental Liability related in any way to
Holdings, the Borrower or any of the Subsidiaries; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related costs and expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from primarily the gross negligence, willful
misconduct or bad faith of such Indemnitee (and, upon any such determination,
any indemnification payments with respect to such losses, claims, damages,
liabilities or related costs and expenses previously received by such
Indemnitee shall be promptly reimbursed by such Indemnitee).
  (c)           To
the extent that Holdings and the Borrower fail to pay any amount required to be
paid by them to the Administrative Agent, the Collateral Agent or the Arranger
under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent, the
Collateral Agent or the Arranger, as the case may be, such Lender’s pro  rata
share (determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount; provided 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, the Collateral Agent or the Arranger in its capacity as
such.  

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    For purposes hereof, a Lender’s “pro rata share” shall be
determined based upon its share of the sum of the outstanding Loans and unused
Commitments at the time.
  (d)           To
the extent permitted by applicable law, neither Holdings nor the Borrower shall
assert, and each hereby waives, any claim against any Indemnitee, on any theory
of liability, for special, indirect, consequential or punitive damages (as
opposed to direct or actual damages) arising out of, in connection with, or as
a result of, this Agreement or any agreement or instrument contemplated hereby,
the Transactions, any Loan or the use of the proceeds thereof.
  (e)           The
provisions of this Section 9.05 shall remain operative and in full
force and effect regardless of the expiration of the term of this Agreement,
the consummation of the Transactions or the other transactions contemplated
hereby, the repayment of any of the Loans, the expiration of the Commitments,
the invalidity or unenforceability of any term or provision of this Agreement
or any other Loan Document, or any investigation made by or on behalf of the
Administrative Agent, the Collateral Agent, the Arranger or any Lender.  All amounts due under this Section 9.05
shall be payable on written demand therefor.
  SECTION 9.06.      Right of Setoff.  If an Event of Default shall have occurred
and be continuing, subject to the terms of the Intercreditor Agreement, each
Lender is hereby authorized at any time and from time to time, except to the
extent prohibited by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender to or for the credit or the
account of Holdings or the Borrower against any of and all the obligations of
Holdings or the Borrower now or hereafter existing under this Agreement and
other Loan Documents held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement or such other Loan
Document and although such obligations may be unmatured.  The rights of each Lender under this Section 9.06
are in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.
  SECTION 9.07.      Applicable Law.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
(OTHER THAN AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL BE CONSTRUED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
  SECTION 9.08.      Waivers; Amendment.  (a)  No
failure or delay of the Administrative Agent, the Collateral Agent or any
Lender in exercising any power or right hereunder or under any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power.  The rights and remedies of the Administrative
Agent, the Collateral Agent and the Lenders hereunder and under the other Loan
Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have.  No waiver of
any provision of this Agreement or any other Loan Document or consent to any
departure by the Borrower or any other Loan Party therefrom shall in any event
be effective unless the same shall be permitted by paragraph (b)
below, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. 
No notice or demand on Holdings or the Borrower 

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    in any case shall entitle
Holdings or the Borrower to any other or further notice or demand in similar or
other circumstances.
  (b)           Neither
this Agreement nor any other Loan Document nor any provision hereof or thereof
may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by Holdings, the Borrower and the Required
Lenders; provided, however, that no such agreement shall
(i) decrease the principal amount of or prepayment premium on, or extend
the maturity of or any date for the payment of scheduled principal of (subject
to the last sentence of the first paragraph of Article VII) or any
prepayment premium on or any interest on any Loan, or waive or excuse any such
payment or any part thereof, or decrease the rate of interest on any Loan,
without the prior written consent of each Lender adversely affected thereby,
(ii) increase or extend the Commitment or decrease or extend the date for
payment of any fees of any Lender without the prior written consent of such
Lender, (iii) amend or modify the pro  rata requirements of Section 2.17,
the provisions of Section 9.04(j), the provisions of this Section
or the percentage set forth in the definition of the term “Required Lenders,”
or release any Guarantor (other than in accordance with the terms of the
Guarantee and Collateral Agreement), without the prior written consent of each
Lender adversely affected thereby, (iv) release all or substantially all
of the Collateral without the prior written consent of each Lender or
(v) modify the protections afforded to an SPC pursuant to the provisions
of Section 9.04(i) without the written consent of such SPC; provided  further that no such agreement shall amend, modify or otherwise affect
the rights or duties of the Administrative Agent or the Collateral Agent
hereunder or under any other Loan Document without the prior written consent of
the Administrative Agent or the Collateral Agent, as applicable.
  SECTION 9.09.      Interest Rate Limitation.  Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts which are treated as interest on such
Loan under applicable law (collectively the “Charges”), shall exceed the
maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such
Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges
that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section 9.09 shall be cumulated and
the interest and Charges payable to such Lender in respect of other Loans or
periods shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective
Rate to the date of repayment, shall have been received by such Lender.
  SECTION 9.10.      Entire Agreement.  This Agreement, the Engagement Letter and the
other Loan Documents constitute the entire contract between the parties
relative to the subject matter hereof. 
Any other previous agreement among the parties with respect to the
subject matter hereof is superseded by this Agreement and the other Loan
Documents.  Except as otherwise provided
in Section 9.19, nothing in this Agreement or in the other Loan
Documents, expressed or implied, is intended to confer upon any person (other
than the parties hereto and thereto, their respective successors and assigns
permitted hereunder and, to the extent expressly contemplated hereby, the
Related Parties of each of the Administrative Agent, the Collateral 

 83
 

    Agent, the Arranger and
the Lenders ) any rights, remedies, obligations or liabilities under or by
reason of this Agreement or the other Loan Documents.
  SECTION 9.11.      WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS.  EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND
THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.11.
  SECTION 9.12.      Severability.  In the event any one or more of the
provisions contained in this Agreement or in any other Loan Document should be
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby (it being understood that
the invalidity of a particular provision in a particular jurisdiction shall not
in and of itself affect the validity of such provision in any other
jurisdiction).  The parties shall
endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.
  SECTION 9.13.      Counterparts.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which when taken together
shall constitute a single contract, and shall become effective as provided in Section 9.03.  Delivery of an executed signature page to
this Agreement or of a Lender Addendum by facsimile transmission shall be as
effective as delivery of a manually signed counterpart of this Agreement.
  SECTION 9.14.      Headings.  Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.
  SECTION 9.15.      Jurisdiction; Consent to Service of
Process.  (a)  Each of Holdings and the Borrower hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or the other Loan Documents, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State court or, to the extent permitted by law,
in such Federal court.  Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the 

 84
 

    judgment or in any other
manner provided by law.  Nothing in this
Agreement shall affect any right that the Administrative Agent, the Collateral
Agent, the Arranger or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or the other Loan Documents against
either Holdings or the Borrower or its properties in the courts of any
jurisdiction.
  (b)           Each
of Holdings and the Borrower hereby irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection which it
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or the other Loan
Documents in any New York State or Federal court.  Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.
  (c)           Each
party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 9.01.  Nothing in this Agreement will affect the
right of any party to this Agreement to serve process in any other manner
permitted by law.
  SECTION 9.16.      Confidentiality.  Each of the Administrative Agent, the
Collateral Agent and the Lenders agrees to maintain the confidentiality of the
Information, except that Information may be disclosed (a) to its and its
Affiliates’ officers, directors, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the persons to whom
such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the
extent requested by any regulatory authority or quasi-regulatory authority
(such as the National Association of Insurance Commissioners), (c) to the
extent required by applicable laws or regulations or by any subpoena or similar
legal process, (d) in connection with the exercise of any remedies
hereunder or under the other Loan Documents or any suit, action or proceeding
relating to the enforcement of its rights hereunder or thereunder,
(e) subject to a prior or contemporaneous agreement containing provisions substantially
the same as those of this Section 9.16, to (i) any actual or
prospective assignee of or participant in any of its rights or obligations
under this Agreement and the other Loan Documents or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative
transaction relating to Holdings, the Borrower or any Subsidiary or any of
their respective obligations, (f) with the consent of Holdings or the
Borrower or (g) to the extent such Information becomes publicly available other
than as a result of a breach of this Section 9.16.  Each of the Administrative Agent, the
Collateral Agent and the Lenders agrees not to use any Information except for
evaluating the performance of Holdings, the Borrower and the Subsidiaries
hereunder and enforcing the rights, remedies and obligations hereunder and
under the other Loan Documents.  For the
purposes of this Section, “Information” shall mean all information received
from Holdings or the Borrower and related to the Borrower or its business,
other than any such information that was available to the Administrative Agent,
the Collateral Agent or any Lender on a nonconfidential basis prior to its
disclosure by Holdings or the Borrower; provided that, in the case of
Information received from Holdings or the Borrower after the Closing Date, such
information is clearly identified at the time of delivery as confidential.  Any person required to maintain the
confidentiality of Information as provided in this Section 9.16
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 

 85
 

    person would accord its
own confidential information. 
Notwithstanding any other express or implied agreement, arrangement or
understanding to the contrary, each of the parties hereto agrees that each
other party hereto (and each of its employees, representatives or agents) are
permitted to disclose to any persons, without limitation, the tax treatment and
tax structure of the Loans and the other transactions contemplated by the Loan
Documents and all materials of any kind (including opinions and tax analyses)
that are provided to the Loan Parties, the Lenders, the Arranger or any Agent
related to such tax treatment and tax aspects. 
To the extent not inconsistent with the immediately preceding sentence,
this authorization does not extend to disclosure of any other information or
any other term or detail not related to the tax treatment or tax aspects of the
Loans or the transactions contemplated by the Loan Documents.
  SECTION 9.17.      Delivery of Lender Addenda.  Each initial Lender shall become a party to
this Agreement by delivering to the Administrative Agent a Lender Addendum duly
executed by such Lender, the Borrower and the Administrative Agent.
  SECTION 9.18.      USA PATRIOT Act Notice.  Each Lender and the Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies Holdings and the
Borrower that pursuant to the requirements of the USA PATRIOT Act, it is
required to obtain, verify and record information that identifies Holdings and
the Borrower, which information includes the name and address of Holdings and
the Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable to identify Holdings and the Borrower in
accordance with the USA PATRIOT ACT.
  SECTION 9.19.      Intercreditor Agreement.  Each Lender hereunder (a) acknowledges that
it has received a copy of the Intercreditor Agreement, (b) consents to the
subordination of liens provided for in the Intercreditor Agreement, (c) agrees
that it will be bound by and will take no actions contrary to the provisions of
the Intercreditor Agreement and (d) authorizes and instructs the Administrative
Agent to enter into the Intercreditor Agreement as Administrative Agent and on
behalf of such Lender.  The foregoing
provisions are intended as an inducement to the lenders under the First Lien
Credit Agreement to extend credit to the Borrower and such lenders are intended
third party beneficiaries of such provisions.
  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 86

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

	
  

  	
  TRUE TEMPER CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name.

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TRUE TEMPER SPORTS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

(signatures
continue on next page)

 

	
  

  	
  CREDIT SUISSE, CAYMAN ISLANDS

  
	
   

  	
  BRANCH, individually and as Administrative

  
	
   

  	
  Agent and Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
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  SIGNATURE PAGE TO TRUE TEMPER

  SPORTS, INC. SECOND LIEN CREDIT

  AGREEMENT DATED AS OF THE DATE FIRST

  ABOVE WRITTEN

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAME OF LENDER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]