Document:

Fourth Amendment to Loan Agreement

 Exhibit 10.1 
  
 FOURTH AMENDMENT TO LOAN AGREEMENT 
  
 This Fourth Amendment to Loan Agreement (this “Amendment”) is entered into as of June 8, 2004 by and among:

  
 CITIZENS BANK OF MASSACHUSETTS (the
“Lender”) a state chartered bank with offices at 28 State Street, Boston, Massachusetts 02109, 
  
 and 
  
 LOJACK CORPORATION (in such capacity, the “Lead Borrower”), a Massachusetts corporation with its principal executive
offices at 200 Lowder Brook Drive, Suite 1000, Westwood, Massachusetts 02090, as agent for the following (individually, a “Borrower” and collectively, the “Borrowers”): 
  
 LOJACK CORPORATION, a Massachusetts corporation with its principal executive
offices at 200 Lowder Brook Drive, Suite 1000, Westwood, Massachusetts 02090, 
  
 LOJACK INTERNATIONAL CORPORATION, a Delaware corporation with its principal executive offices at 200 Lowder Brook Drive, Suite 1000, Westwood, Massachusetts 02090, 
  
 LOJACK GLOBAL LLC, a Delaware limited liability company with its principal
executive offices at 200 Lowder Brook Drive, Suite 1000, Westwood, Massachusetts 02090, 
  
 LOJACK OPERATING COMPANY, L.P., a Delaware limited partnership with its principal executive offices at 200 Lowder Brook Drive, Suite 1000, Westwood, Massachusetts 02090, 
  
 VEHICLE RECOVERY SYSTEMS COMPANY, a corporation organized under the laws of
the province of Nova Scotia, Canada with its principal executive offices at 200 Lowder Brook Drive, Suite 1000, Westwood, Massachusetts 02090. 
  
 in consideration of the mutual covenants contained herein and the benefits to be derived herefrom. Unless otherwise specified herein, all capitalized terms shall have the
same meaning as set forth in the Loan Agreement (as hereinafter defined). 
  
 W I T N E S S E T H 
  
 WHEREAS, the Borrowers executed and delivered to the Lender a certain Loan Agreement dated June 21, 2002, as amended by a certain First Amendment to Loan Agreement dated July 30, 2002, as further amended by a certain Second Amendment to
Loan Agreement dated November 6, 2002, as further amended by a certain Amendment No. 1 to Loan Agreement and Consent dated January 8, 2003, as further amended by a certain Third Amendment to Loan Agreement dated January 21, 2003 (as amended, the
“Loan Agreement”); and 
  
 WHEREAS, the Borrowers
and the Lender have agreed to further amend the Loan Agreement in order to, among other things, extend the Maturity Date and restate certain of the financial performance covenants therein; and 

 WHEREAS, the Borrowers have determined that this Amendment is in the Borrowers’ best interest.

  
 NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  

	1.	The Borrowers hereby certify to the Lender that, to the best of each Borrower’s knowledge and belief after due inquiry, the representations and warranties contained in the Loan
Agreement are true as of the date hereof. 

  

	2.	The Loan Agreement is hereby amended by deleting the definition of “Maturity Date” appearing in Article 1 thereof in its entirety and inserting in lieu thereof the
following: 

  
 “                “Maturity Date”:            June 21, 2007.” 
  

	3.	The Loan Agreement is hereby amended by deleting Section 2-14 (b) (i) thereof in its entirety and inserting in lieu thereof the following: 

  
 “(i) The aggregate Stated Amount of all L/C’s outstanding does not
exceed Four Million Dollars ($4,000,000.00).” 
  

	4.	The Loan Agreement is hereby amended by deleting Exhibit 5:5-8 thereto in its entirety and inserting in lieu thereof Exhibit 5:5-8 hereto. 

  

	5.	The Borrowers acknowledge and agree that the Borrowers have no offsets, defenses, claims or counterclaims against the Lender with respect to the Loan Agreement, this Amendment or
any other document, instrument or agreement executed and delivered by the Borrowers to the Lender in connection therewith and, to the extent that the Borrowers have any such offsets, defenses, claims or counterclaims, each Borrower hereby
affirmatively WAIVES any such offsets, defenses, claims or counterclaims and specifically RELEASES the Lender from any such liability on account thereof. 

  

	6.	This Amendment and all other documents, instruments or agreements executed in connection herewith incorporate all discussions and negotiations between the Borrowers and the Lender,
either expressed or implied, concerning the matters included herein, any statute, custom, or usage to the contrary notwithstanding. No such discussions or negotiations shall limit, modify or otherwise affect the provisions hereof. No modification,
amendment, or waiver of any provision of this Amendment or the Loan Agreement or any provision under any other agreement, document or instrument between the Borrowers and the Lender shall be effective unless executed in writing by the party to be
charged with such modification, amendment or waiver, and if such party be the Lender, then by a duly authorized officer thereof. 

  

	7.	Except as specifically modified herein, the Loan Agreement shall remain in full force and effect as originally written and the Borrowers hereby ratify and confirm all terms and
conditions contained therein. 

  

	8.	This Amendment shall be construed in accordance with and governed by the laws of the Commonwealth of Massachusetts and shall take effect as a sealed instrument.

 IN WITNESS WHEREOF, the parties have hereunto set their hands and seals as of the date first
written above. 
  

			
	Lead Borrower:
	
	LOJACK CORPORATION
		
	By	 	 /s/    Keith Farris        

	 	 	Duly Authorized
		
	Print Name:	 	 Keith Farris

		
	Title:	 	 VP Finance & CFO

	
	Borrowers:
	
	LOJACK CORPORATION
		
	By	 	 /s/    Keith Farris        

	 	 	Duly Authorized
		
	Print Name:	 	 Keith Farris

		
	Title:	 	 VP Finance & CFO

	
	LOJACK INTERNATIONAL CORPORATION
		
	By	 	 /s/    Keith Farris        

	 	 	Duly Authorized
		
	Print Name:	 	 Keith Farris

		
	Title:	 	 VP Finance & CFO

	
	LOJACK GLOBAL LLC
	
	By: LOJACK CORPORATION, its sole Member
		
	 By
	 	 /s/    Keith Farris        

	 	 	Duly Authorized
		
	Print Name:	 	 Keith Farris

		
	Title:	 	 VP Finance & CFO

			
	LOJACK OPERATING COMPANY, L.P.
	
	By: LOJACK CORPORATION, its General Partner
		
	By	 	 /s/    Keith Farris        

	 	 	Duly Authorized
		
	Print Name:	 	 Keith Farris

		
	Title:	 	 VP Finance & CFO

	
	VEHICLE RECOVERY SYSTEMS COMPANY
		
	By	 	 /s/    Keith Farris        

	 	 	Duly Authorized
		
	Print Name:	 	 Keith Farris

		
	Title:	 	 VP Finance & CFO

		
	Lender:	 	 
	
	CITIZENS BANK OF MASSACHUSETTS
		
	By	 	 /s/    David Farwell        

	 	 	Duly Authorized
		
	Print Name:	 	 David Farwell

		
	Title:	 	 Vice PresidentNote Purchase Agreement

 EXHIBIT 10.2 
  

  
 SYPRIS SOLUTIONS, INC. 
  
 $55,000,000 
 Aggregate Principal Amount 
 Senior Notes

  
 $7,500,000 4.73% Senior Notes, Series A 
 Due June 30, 2009 
  
 $27,500,000 5.35% Senior Notes, Series B 
 Due June 30, 2011 
  
 $20,000,000 5.78% Senior Notes, Series C 
 Due June 30, 2014 
  

 
 NOTE PURCHASE AGREEMENT 
  

  
 Dated as of June 1, 2004 
  

  
 Series A PPN: 871655 A* 7 
 Series B PPN: 871655 A@ 5 
 Series C PPN: 871655
A# 3 

 TABLE OF CONTENTS 
  

							
	 Section

	  	 	  	 	  	Page

	 1.
	  	AUTHORIZATION OF NOTES	  	1
			
	 2.
	  	SALE AND PURCHASE OF NOTES.	  	1
			
	 3.
	  	CLOSINGS.	  	2
			
	 4.
	  	CONDITIONS TO CLOSING	  	2
				
	 	  	4.1.	  	Representations and Warranties	  	2
	 	  	4.2.	  	Performance; No Default	  	2
	 	  	4.3.	  	Compliance Certificates	  	2
	 	  	4.4.	  	Opinions of Counsel	  	3
	 	  	4.5.	  	Purchase Permitted By Applicable Law, etc	  	3
	 	  	4.6.	  	Sale of Other Notes	  	3
	 	  	4.7.	  	Payment of Special Counsel Fees	  	3
	 	  	4.8.	  	Private Placement Numbers	  	3
	 	  	4.9.	  	Changes in Corporate Structure	  	3
	 	  	4.10.	  	Subsidiary Guaranty.	  	4
	 	  	4.11.	  	Consummation of Acquisition.	  	4
	 	  	4.12.	  	Proceedings and Documents.	  	4
			
	 5.
	  	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	4
				
	 	  	5.1.	  	Organization; Power and Authority	  	4
	 	  	5.2.	  	Authorization, etc	  	4
	 	  	5.3.	  	Disclosure	  	5
	 	  	5.4.	  	Organization and Ownership of Shares of Subsidiaries	  	5
	 	  	5.5.	  	Financial Statements	  	5
	 	  	5.6.	  	Compliance with Laws, Other Instruments, etc	  	6
	 	  	5.7.	  	Governmental Authorizations, etc.	  	6
	 	  	5.8.	  	Litigation; Observance of Statutes and Orders	  	6
	 	  	5.9.	  	Taxes	  	6
	 	  	5.10.	  	Title to Property; Leases	  	7
	 	  	5.11.	  	Licenses, Permits, etc	  	7
	 	  	5.12.	  	Compliance with ERISA	  	8
	 	  	5.13.	  	Private Offering by the Company	  	8
	 	  	5.14.	  	Use of Proceeds; Margin Regulations	  	8
	 	  	5.15.	  	Existing Debt; Future Liens	  	8
	 	  	5.16.	  	Foreign Assets Control Regulations, Anti-Terrorism Order, etc	  	9
	 	  	5.17.	  	Status under Certain Statutes	  	9
	 	  	5.18.	  	Environmental Matters	  	9
	 	  	5.19.	  	Solvency of Subsidiary Guarantors	  	9
			
	 6.
	  	REPRESENTATIONS OF THE PURCHASERS.	  	9
				
	 	  	6.1.	  	Purchase for Investment	  	9
	 	  	6.2.	  	Source of Funds	  	10
			
	 7.
	  	INFORMATION AS TO COMPANY	  	11
				
	 	  	7.1.	  	Financial and Business Information.	  	11
	 	  	7.2.	  	Officer’s Certificate	  	13
	 	  	7.3.	  	Inspection	  	13

							
	 8.
	  	PREPAYMENT OF THE NOTES.	  	13
				
	 	  	8.1.	  	No Scheduled Prepayments	  	13
	 	  	8.2.	  	Optional Prepayments with Make-Whole Amount	  	13
	 	  	8.3.	  	Mandatory Offer to Prepay Upon Change of Control	  	14
	 	  	8.4.	  	Allocation of Partial Prepayments	  	15
	 	  	8.5.	  	Maturity; Surrender, etc	  	15
	 	  	8.6.	  	Purchase of Notes	  	15
	 	  	8.7.	  	Make-Whole Amount	  	15
			
	 9.
	  	AFFIRMATIVE COVENANTS	  	17
				
	 	  	9.1.	  	Compliance with Law	  	17
	 	  	9.2.	  	Insurance	  	17
	 	  	9.3.	  	Maintenance of Properties	  	17
	 	  	9.4.	  	Payment of Taxes	  	17
	 	  	9.5.	  	Corporate Existence, etc	  	17
	 	  	9.6.	  	Pari Passu Ranking	  	18
			
	 10.
	  	NEGATIVE COVENANTS	  	18
				
	 	  	10.1.	  	Consolidated Net Debt.	  	18
	 	  	10.2.	  	Adjusted Consolidated Net Worth	  	18
	 	  	10.3.	  	Priority Debt	  	18
	 	  	10.4.	  	Liens.	  	18
	 	  	10.5.	  	Sale of Assets.	  	19
	 	  	10.6.	  	Mergers, Consolidations, etc.	  	20
	 	  	10.7.	  	Subsidiary Guaranty	  	21
	 	  	10.8.	  	Nature of Business.	  	21
	 	  	10.9.	  	Transactions with Affiliates	  	21
			
	 11.
	  	EVENTS OF DEFAULT	  	21
			
	 12.
	  	REMEDIES ON DEFAULT, ETC	  	23
				
	 	  	12.1.	  	Acceleration	  	23
	 	  	12.2.	  	Other Remedies	  	24
	 	  	12.3.	  	Rescission	  	24
	 	  	12.4.	  	No Waivers or Election of Remedies, Expenses, etc	  	24
			
	 13.
	  	REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES	  	24
				
	 	  	13.1.	  	Registration of Notes	  	24
	 	  	13.2.	  	Transfer and Exchange of Notes	  	24
	 	  	13.3.	  	Replacement of Notes	  	25
			
	 14.
	  	PAYMENTS ON NOTES.	  	25
				
	 	  	14.1.	  	Place of Payment	  	25
	 	  	14.2.	  	Home Office Payment	  	25
			
	 15.
	  	EXPENSES, ETC	  	26
				
	 	  	15.1.	  	Transaction Expenses	  	26
	 	  	15.2.	  	Survival	  	26
			
	 16.
	  	SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT	  	26
			
	 17.
	  	AMENDMENT AND WAIVER	  	26
				
	 	  	17.1.	  	Requirements	  	26
	 	  	17.2.	  	Solicitation of Holders of Notes	  	27
	 	  	17.3.	  	Binding Effect, etc	  	27

							
	 	  	17.4        Notes held by Company, etc	  	27
			
	 18.
	  	NOTICES	  	27
			
	 19.
	  	REPRODUCTION OF DOCUMENTS	  	28
			
	 20.
	  	CONFIDENTIAL INFORMATION	  	28
			
	 21.
	  	SUBSTITUTION OF PURCHASER	  	29
			
	 22.
	  	RELEASE OF SUBSIDIARY GUARANTOR	  	29
			
	 23.
	  	MISCELLANEOUS	  	29
				
	 	  	23.1.	  	Successors and Assigns	  	29
	 	  	23.2.	  	Payments Due on Non-Business Days	  	29
	 	  	23.3.	  	Severability	  	29
	 	  	23.4.	  	Construction	  	30
	 	  	23.5.	  	Counterparts	  	30
	 	  	23.6.	  	Governing Law	  	30
	 	  	23.7.	  	Submission to Jurisdiction	  	30
	 	  	23.8.	  	Waiver of Jury Trial	  	30

					
	 SCHEDULE A
	  	—  	  	Information Relating to Purchasers
	 SCHEDULE B
	  	—  	  	Defined Terms
	 SCHEDULE B-1
	  	—  	  	Existing Investments
			
	 SCHEDULE 5.3
	  	—  	  	Disclosure Materials
	 SCHEDULE 5.4
	  	—  	  	Subsidiaries and Ownership of Subsidiary Stock
	 SCHEDULE 5.5
	  	—  	  	Financial Statements
	 SCHEDULE 5.11
	  	—  	  	Licenses, Permits, etc.
	 SCHEDULE 5.14
	  	—  	  	Use of Proceeds
	 SCHEDULE 5.15
	  	—  	  	Existing Debt
	 SCHEDULE 10.4
	  	—  	  	Liens
			
	 EXHIBIT 1(a)
	  	—  	  	Form of Series A Senior Note
	 EXHIBIT 1(b)
	  	—  	  	Form of Series B Senior Note
	 EXHIBIT 1(c)
	  	—  	  	Form of Series C Senior Note
	 EXHIBIT 1(d)
	  	—  	  	Form of Subsidiary Guaranty
	 EXHIBIT 4.4(a)
	  	—  	  	Form of Opinion of Special Counsel for the Company and the Subsidiary Guarantors
	 EXHIBIT 4.4(b)
	  	—  	  	Form of Opinion of General Counsel of the Company
	 EXHIBIT 4.4(c)
	  	—  	  	Form of Opinion of Special Counsel for the Purchasers

 SYPRIS SOLUTIONS, INC. 
 101 Bullitt Lane, Suite 450 
 Louisville, Kentucky 40222 
 (502) 329-2000 
 Fax: (502) 329-2050 

 
 $55,000,000 
 Aggregate Principal Amount 
 Senior Notes 
  
 $7,500,000 4.73% Senior Notes, Series A, due June 30, 2009 
 $27,500,000 5.35% Senior Notes, Series B, due June 30, 2011 
 $20,000,000 5.78% Senior Notes, Series C, due June 30, 2014 
  
 Dated as of June 1, 2004 
  
 TO EACH OF THE PURCHASERS LISTED IN 
 THE ATTACHED SCHEDULE A: 
  
 Ladies and Gentlemen: 
  
 SYPRIS SOLUTIONS, INC., a Delaware corporation (the “Company”), agrees with you as follows: 
  
 1. AUTHORIZATION OF NOTES. 
  
 The Company has authorized the issue and sale of $55,000,000 aggregate
principal amount of Senior Notes, consisting of $7,500,000 4.73% Senior Notes, Series A, due June 30, 2009 (the “Series A Notes”), $27,500,000 5.35% Senior Notes, Series B, due June 30, 2011 (the “Series B Notes”) and $20,000,000
5.78% Senior Notes, Series C, due June 30, 2014 (the “Series C Notes” and collectively with the Series A Notes and Series B Notes, the “Notes”, such term to include any such Notes issued in substitution therefor pursuant to
Section 13 of this Agreement). The Notes shall be substantially in the form set out in Exhibits 1(a), 1(b) or 1(c), as appropriate, with such changes therefrom, if any, as may be approved by you, the Other Purchasers and the Company. Certain
capitalized terms used in this Agreement are defined in Schedule B; references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement. Subject to Section 22, the
Notes will be guaranteed by any Subsidiary that is or in the future becomes a guarantor of, or otherwise becomes obligated in respect of, any Debt to banks under the Credit Agreement (individually, a “Subsidiary Guarantor” and
collectively, the “Subsidiary Guarantors”) pursuant to a guaranty in substantially the form of Exhibit 1(d) (the “Subsidiary Guaranty”). The Notes will be unsecured and will rank pari passu with the Company’s Debt to
banks under the Credit Agreement and with all other senior unsecured Debt of the Company. 
  
 2. SALE AND PURCHASE OF NOTES. 
  
 Subject to the terms and conditions of this Agreement, the Company will issue and sell to you and each of the other purchasers named in Schedule A (the “Other Purchasers”), and you and the Other Purchasers will purchase from the
Company, at the Closings provided for in Section 3, Notes in the principal amount and series specified opposite your names in Schedule A at the purchase price of 100% of the principal amount thereof. Your obligation hereunder and the obligations of
the Other Purchasers are several and not joint obligations and you shall have no obligation and no liability to any Person for the performance or non-performance by any Other Purchaser hereunder. 
  

 1 

 3. CLOSINGS. 
  
 The sale and purchase of the Notes to be purchased by you and the Other Purchasers shall occur at the offices of Gardner Carton & Douglas LLP, 191
North Wacker Drive, Suite 3700, Chicago, Illinois 60606-1698, at 9:00 a.m., Chicago time, at closings on June 10, 2004 (the “First Closing”), on August 19, 2004 (the “Second Closing”) and on a Business Day on or prior to
September 30, 2004 as agreed upon by the Company and the purchasers that are scheduled to purchase Notes at such Closing (the “Third Closing” and, together with the First Closing and the Second Closing, the “Closings”). The date
or time of any Closing may be changed to such other Business Day as may be agreed upon by the Company and the purchasers that are scheduled to purchase Notes at such Closing. At the Closing applicable to your purchase the Company will deliver to you
the Notes to be purchased by you in the form of a single Note (or such greater number of Notes in denominations of at least $100,000 as you may request) dated the date of such Closing and registered in your name (or in the name of your nominee),
against delivery by you to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to account number 615694528 (Sypris
Solutions Operating Account) at Bank One, N.A., 416 W. Jefferson Street, Louisville, Kentucky, 40202, Attention: Elvia Schuler (502-566-2849), ABA routing number 083000137. If at such Closing the Company shall fail to tender such Notes to you as
provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to your satisfaction, you shall, at your election, be relieved of all further obligations under this Agreement, without thereby waiving
any rights you may have by reason of such failure or such nonfulfillment. 
  
 The Company and the Purchasers scheduled to purchase Notes at the Third Closing agree, if the conditions set forth in Section 4.11 have been fulfilled on or before the date of the Second Closing, to use their
reasonable efforts to cause the Third Closing to occur on the date of the Second Closing. 
  
 4. CONDITIONS TO CLOSING. 
  
 The Company’s obligation to issue and sell the Notes to be purchased and paid for by the Purchasers that are scheduled to purchase Notes at the Third Closing is subject to the fulfillment, prior to or at such Closing, of the condition
set forth in Section 4.11. 
  
 Your obligation to purchase and pay
for the Notes to be sold to you at the Closing applicable to your purchase is subject to the fulfillment to your satisfaction, prior to or at such Closing, of the following conditions: 
  
 4.1. Representations and Warranties. 
  
 The representations and warranties of the Company in this Agreement shall be correct when made and at the time of such Closing. 
  
 4.2. Performance; No Default. 
  
 The Company shall have performed and complied with all agreements and
conditions contained in this Agreement required to be performed or complied with by it prior to or at such Closing and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section
5.14) no Default or Event of Default shall have occurred and be continuing. 
  
 4.3. Compliance Certificates. 
  
 (a) Officer’s Certificate. The Company shall have delivered to you an Officer’s Certificate, dated the date of such Closing, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.

  
 (b) Secretary’s Certificate. Each
of the Company and each Subsidiary Guarantor shall have delivered to you a certificate of its Secretary or an Assistant Secretary certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization,
execution and delivery of the Notes and the Agreement or the Subsidiary Guaranty, as the case may be. 
  

 2 

 4.4. Opinions of Counsel. 
  
 You shall have received opinions in form and substance satisfactory to you, dated the date of such Closing (a) from Wyatt,
Tarrant & Combs, LLP special counsel for the Company and the Subsidiary Guarantors, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated hereby as you or your counsel may
reasonably request (and the Company instructs its counsel to deliver such opinion to you), (b) from John McGeeney, General Counsel of the Company, covering the matters set forth in Exhibit 4.4(b) and covering such other matters incident to the
transactions contemplated hereby as you or your counsel my reasonably request (and the Company instructs its counsel to deliver such opinion to you), and (c) from Gardner Carton & Douglas LLP, your special counsel in connection with such
transactions, substantially in the form set forth in Exhibit 4.4(c) and covering such other matters incident to such transactions as you may reasonably request. 
  

4.5. Purchase Permitted By Applicable Law, etc. 
  
 On the date of such Closing your purchase of Notes shall (i) be permitted by the laws and regulations of each jurisdiction to which you are subject,
without recourse to provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (ii) not violate any applicable law
or regulation (including, without limitation, Regulation U, T or X of the Board of Governors of the Federal Reserve System) and (iii) not subject you to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law
or regulation was not in effect on the date hereof. If requested by you, you shall have received an Officer’s Certificate certifying as to such matters of fact as you may reasonably specify to enable you to determine whether such purchase is so
permitted. 
  
 4.6. Sale of Other Notes. 
  
 Contemporaneously with or prior to each Closing the Company shall sell or
shall have sold to the Other Purchasers and the Other Purchasers shall purchase or shall have purchased the Notes to be purchased by them as specified in Schedule A at such Closing or any prior Closing. 
  
 4.7. Payment of Special Counsel Fees. 
  
 Without limiting the provisions of Section 15.1, the Company shall have paid
on or before such Closing the reasonable fees, charges and disbursements of your special counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to such
Closing. 
  
 4.8. Private Placement Numbers. 
  
 A Private Placement Number issued by Standard & Poor’s CUSIP
Service Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners) shall have been obtained for each series of Notes by Gardner Carton & Douglas for the Notes. 
  
 4.9. Changes in Corporate Structure. 
  
 The Company shall not have changed its jurisdiction of incorporation or been
a party to any merger or consolidation and shall not have succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.

  

 3 

 4.10. Subsidiary Guaranty. 
  
 Each Subsidiary Guarantor shall have executed and delivered the Subsidiary Guaranty in favor of you and the Other
Purchasers. 
  
 4.11. Consummation of Acquisition. 
  
 As a condition to the Third Closing, at or prior to such Closing, the
Company shall have consummated the acquisition of certain assets of Dana Corporation located in Toluca, Mexico, or shall have entered into a binding agreement to acquire such assets that specifies a closing date not more than 30 days after the date
of execution of such agreement, provided that (unless the Company and the Purchasers scheduled to purchase Notes at the Third Closing otherwise agree) if such specified closing date is not on or before October 30, 2004, the Purchasers scheduled to
purchase Notes at the Third Closing shall have no obligation to purchase any Notes at such Closing. 
  
 4.12. Proceedings and Documents. 
  
 All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to you and your special
counsel, and you and your special counsel shall have received all such counterpart originals or certified or other copies of such documents as you or they may reasonably request. 
  
 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 
  
 The Company represents and warrants to you that: 
  
 5.1. Organization; Power and Authority. 
  
 The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly
qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and
proposes to transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof. 
  
 5.2. Authorization, etc. 
  
 This Agreement and the Notes have been duly authorized by all necessary corporate action on the part of the Company, and this Agreement constitutes, and
upon execution and delivery thereof each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law). 
  
 The Subsidiary Guaranty has been duly
authorized by all necessary corporate action on the part of each Subsidiary Guarantor and upon execution and delivery thereof will constitute the legal, valid and binding obligation of each Subsidiary Guarantor, enforceable against each Subsidiary
Guarantor in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting the enforcement of creditors’
rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  

 4 

 5.3. Disclosure. 
  
 The Company, through its agents, LaSalle Debt Capital Markets and SunTrust Capital Markets, Inc., has delivered to you and each Other Purchaser a copy of
a Private Placement Memorandum, dated April 2004 (the “Memorandum”), relating to the transactions contemplated hereby. Except as disclosed in Schedule 5.3, this Agreement, the Memorandum, the documents, certificates or other writings
identified in Schedule 5.3 and the financial statements listed in Schedule 5.5, taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in
light of the circumstances under which they were made. Except as disclosed in the Memorandum or as expressly described in Schedule 5.3, or in one of the documents, certificates or other writings identified therein, or in the financial statements
listed in Schedule 5.5, since December 31, 2003, there has been no change in the financial condition, operations, business or properties of the Company or any of its Subsidiaries except changes that individually or in the aggregate would not
reasonably be expected to have a Material Adverse Effect. 
  
 5.4. Organization
and Ownership of Shares of Subsidiaries. 
  
 (a) Schedule 5.4 is (except as noted therein) a complete and correct list of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of
each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary. 
  
 (b) All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being owned by
the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4). 
  
 (c) Each Subsidiary identified in Schedule 5.4 is a
corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each
jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact. 
  
 5.5. Financial Statements. 
  
 The Company has delivered to you and each Other Purchaser copies of the
financial statements of the Company and its Subsidiaries listed on Schedule 5.5. All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of
the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP
consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). 
  
 5.6. Compliance with Laws, Other Instruments, etc. 
  
 The execution, delivery and performance by the Company of this Agreement and the Notes will not (i) contravene, result in
any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate
charter or by-laws, or any other Material agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (ii) conflict with or result
in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (iii) violate any provision of any statute or other
rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary. 
  

 5 

 The execution, delivery and performance by each Subsidiary Guarantor of the Subsidiary Guaranty will not
(i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of such Subsidiary Guarantor under any indenture, mortgage, deed of trust, loan, purchase or credit agreement,
lease, corporate charter or by-laws, or any other Material agreement or instrument to which such Subsidiary Guarantor is bound or by which such Subsidiary Guarantor or any of its properties may be bound or affected, (ii) conflict with or result in a
breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to such Subsidiary Guarantor or (iii) violate any provision of any statute or other rule or
regulation of any Governmental Authority applicable to such Subsidiary Guarantor. 
  
 5.7. Governmental Authorizations, etc. 
  
 Except
for any filings under federal or state securities laws that have been or, prior to the date of the First Closing or the Second Closing, as applicable, will have been made, no consent, approval or authorization of, or registration, filing or
declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Notes or the execution, delivery or performance by each Subsidiary Guarantor of the Subsidiary
Guaranty. 
  
 5.8. Litigation; Observance of Statutes and Orders.

  
 (a) There are no actions, suits or
proceedings pending or, to the knowledge of the Company threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental
Authority that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 
  
 (b) Neither the Company nor any Subsidiary is in default under any term of any agreement or instrument to which it is a party or by which
it is bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including Environmental Laws and the USA Patriot Act) of any
Governmental Authority, which default or violation, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 
  
 5.9. Taxes. 
  
 The Company and its Subsidiaries have filed all income tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown
to be due and payable on such returns and all other taxes and assessments payable by them, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the
amount of which is not individually or in the aggregate Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company or a Subsidiary, as
the case may be, has established adequate reserves in accordance with GAAP. The Federal income tax liabilities of the Company and its Subsidiaries have been determined by the Internal Revenue Service and paid for all fiscal years up to and including
the fiscal year ended December 31, 1997. 
  
 5.10. Title to Property; Leases.

  
 The Company and its Subsidiaries have good and sufficient
title to their respective Material properties, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date (except as
sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement, except for those defects in title and Liens that, individually or in the aggregate, would not have a Material
Adverse Effect. All Material leases are valid and subsisting and are in full force and effect in all material respects. 
  

 6 

 5.11. Licenses, Permits, etc. 
  
 Except as disclosed in Schedule 5.11, 
  
 (a) the Company and its Subsidiaries own or possess all licenses, permits, franchises, authorizations,
patents, copyrights, service marks, trademarks and trade names, or rights thereto necessary for the conduct of their business without known conflict with the rights of others; 
  
 (b) to the best knowledge of the Company, no product of the Company or any Subsidiary infringes any license,
permit, franchise, authorization, patent, copyright, service mark, trademark, trade name or other right owned by any other Person; and 
  
 (c) to the best knowledge of the Company, there is no violation by any Person of any right of the Company or any Subsidiary with respect
to any patent, copyright, service mark, trademark, trade name or other right owned or used by the Company or any Subsidiary; 
  
 except, in each instance, for the lack of ownership or possession, conflicts or violations that, individually or in the aggregate, would not reasonably be expected to
have a Material Adverse Effect. 
  
 5.12. Compliance with ERISA.

  
 (a) The Company and each ERISA Affiliate
have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect. Neither the Company nor
any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in Section 3 of ERISA), and no event, transaction or condition has
occurred or exists that would reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA
Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to Section 401(a)(29) or 412 of the Code, other than such liabilities or Liens as would not be individually or in the aggregate Material.

  
 (b) The present value of the aggregate
benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s
most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities by more than $15,000,000 in the aggregate for all Plans. The term “benefit liabilities” has
the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA. 
  
 (c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to
contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material. 
  
 (d) The expected postretirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in
accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries is not Material. 
  
 (e) The execution and delivery of this Agreement and the
issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The
representation by the Company in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of your representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Notes to be
purchased by you. 
  

 7 

 5.13. Private Offering by the Company. 
  
 Neither the Company nor anyone acting on its behalf has offered the Notes, the Subsidiary Guaranty or any similar securities
for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any person other than you, the Other Purchasers and not more than 13 other Institutional Investors, each of which has
been offered the Notes and the Subsidiary Guaranty at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes or the Subsidiary
Guaranty to the registration requirements of Section 5 of the Securities Act. 
  
 5.14. Use of Proceeds; Margin Regulations. 
  
 The Company will apply the proceeds of the sale of the Notes to repay Debt of the Company as set forth in Schedule 5.14 and for general corporate purposes. No part of the proceeds from the sale of the Notes will be used, directly or
indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under
such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 1% of the
value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 1% of the value of such assets. As used in this Section, the terms “margin
stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U. 
  
 5.15. Existing Debt; Future Liens. 
  
 (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Debt of the Company and its
Subsidiaries as of March 31, 2004, since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Debt of the Company or its Subsidiaries. Neither the Company nor any
Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Debt of the Company or any Subsidiary and no event or condition exists with respect to any Debt of the Company or any
Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

  
 (b) Except as disclosed in Schedule 5.15,
neither the Company nor any Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by
Section 10.4. 
  
 5.16. Foreign Assets Control Regulations, Anti-Terrorism
Order, etc. 
  
 Neither the sale of the Notes by the Company
hereunder nor its use of the proceeds thereof will violate (a) the Trading with the Enemy Act, as amended, (b) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any
enabling legislation or executive order relating thereto, (c) the Anti-Terrorism Order or (d) the United States Foreign Corrupt Practices Act of 1997, as amended. Without limiting the foregoing, neither the Company nor any Subsidiary (i) is a
blocked person described in Section 1 of the Anti-Terrorism Order or (ii) engages in any dealings or transactions, or is otherwise associated, with any such person. 
  

 8 

 5.17. Status under Certain Statutes. 
  
 Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940, as amended, the
Public Utility Holding Company Act of 1935, as amended, the ICC Termination Act, as amended, or the Federal Power Act, as amended. 
  
 5.18. Environmental Matters. 
  
 Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim, and to the knowledge of the Company no
proceeding has been instituted raising any claim against the Company or any Subsidiary or any of their respective real properties now or formerly owned, leased or operated by any of them or other assets, alleging any damage to the environment or
violation of any Environmental Laws, except, in each case, such as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 
  
 (a) Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim,
public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets or their use,
except, in each case, such as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; 
  
 (b) Neither the Company nor any Subsidiary has stored any Hazardous Materials on real properties now or formerly owned, leased or operated
by any of them and has not disposed of any Hazardous Materials in a manner contrary to any Environmental Laws in each case in any manner that would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; and

  
 (c) All buildings on all real properties now
owned, leased or operated by the Company or any Subsidiary are in compliance with applicable Environmental Laws, except where failure to comply would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect. 
  
 5.19. Solvency of Subsidiary Guarantors. 
  
 After giving effect to the transactions contemplated herein, (i) the present
fair salable value of the assets of each Subsidiary Guarantor is in excess of the amount that will be required to pay its probable liability on its existing debts as said debts become absolute and matured, (ii) each Subsidiary Guarantor has received
reasonably equivalent value for executing and delivering the Subsidiary Guaranty, (iii) the property remaining in the hands of each Subsidiary Guarantor is not an unreasonably small capital, and (iv) each Subsidiary Guarantor is able to pay its
debts as they mature. 
  
 6. REPRESENTATIONS OF THE PURCHASERS. 

 
 6.1. Purchase for Investment. 
  
 You represent that you are purchasing the Notes for your own account or for
one or more separate accounts maintained by you or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of your or their property shall at all times be within your or
their control. You understand that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under
circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes. You represent that you are an “accredited investor” within the meaning of subparagraph
(a)(1), (2), (3) or (7) of Rule 501 of Regulation D under the Securities Act. 
  

 9 

 6.2. Source of Funds. 
  
 You represent that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by
you to pay the purchase price of the Notes to be purchased by you hereunder: 
  
 (a) the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which
the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the National Association of Insurance Commissioners (the “NAIC Annual Statement”)) for the general account contract(s) held by or on
behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as
defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual
Statement filed with such Purchaser’s state of domicile; or 
  
 (b) the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its
related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or 
  
 (c) the Source is either (i) an insurance company pooled
separate account, within the meaning of PTE 90-1 (issued January 29, 1990), or (ii) a bank collective investment fund, within the meaning of PTE 91-38 (issued July 12, 1991) and, except as you have disclosed to the Company in writing pursuant to
this paragraph (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or

  
 (d) the Source constitutes assets of an
“investment fund” (within the meaning of Part V of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no
employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1)
of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the
QPAM nor a person controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such QPAM and (ii) the names of all
employee benefit plans whose assets are included in such investment fund have been disclosed to the Company in writing pursuant to this clause (d); or 
  
 (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of PTE 96-23 (the “INHAM
Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV of the INHAM exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a
person controlling or controlled by the INHAM (applying the definition of “control” in Section IV(h) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee
benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or 
  
 (f) the Source is a governmental plan; or 
  

 10 

 (g) the Source is one or more employee benefit plans, or a separate account or trust fund
comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this paragraph (g); or 
  
 (h) the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA. 
  
 As used in this Section 6.2, the terms “employee benefit plan”, “governmental
plan” and “separate account” shall have the respective meanings assigned to such terms in Section 3 of ERISA. 
  
 7. INFORMATION AS TO COMPANY. 
  
 7.1. Financial and Business Information. 
  
 The Company will deliver to each holder of Notes that is an Institutional Investor: 
  
 (a) Quarterly Statements — within 60 days (or such other shorter period within which Quarterly
Reports on Form 10-Q are required to be timely filed with the Securities and Exchange Commission, including any extension permitted by Rule 12b-25 of the Exchange Act) after the end of each quarterly fiscal period in each fiscal year of the Company
(other than the last quarterly fiscal period of each such fiscal year), duplicate copies of, 
  
 (i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, 
  
 (ii) consolidated statements of income and changes in
stockholders’ equity of the Company and its Subsidiaries for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, and 
  
 (iii) consolidated statements of cash flows of the Company
and its Subsidiaries for such quarter or (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, 
  
 setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared
in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results
of operations and cash flows, subject to changes resulting from year-end adjustments, provided that delivery within the time period specified above of copies of the Company’s Quarterly Report on Form 10-Q prepared in compliance with the
requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(a); 
  
 (b) Annual Statements — within 105 days (or such other shorter period within which Annual Reports on Form 10-K are required to
be timely filed with the Securities and Exchange Commission, including any extension permitted by Rule 12b-25 of the Exchange Act) after the end of each fiscal year of the Company, duplicate copies of, 
  
 (i) a consolidated balance sheet of the Company and its
Subsidiaries, as at the end of such year, and 
  
 (ii) consolidated statements of income, changes in stockholders’ equity and cash flows of the Company and its Subsidiaries for such year, 
  

 11 

 setting forth in each case in comparative form the figures for the previous fiscal year, all in
reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all
material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such
financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that the delivery within the time period specified above of
the Company’s Annual Report on Form 10-K for such fiscal year (together with the Company’s annual report to stockholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the requirements therefor
and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(b); 
  
 (c) SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement, report, notice
or proxy statement sent by the Company or any Subsidiary to public securities holders generally, and (ii) each regular or periodic report, each registration statement (other than a Registration Statement on Form S-8) that shall have become effective
(without exhibits except as expressly requested by such holder), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the Securities and Exchange Commission; 
  
 (d) Notice of Default or Event of Default —
promptly, and in any event within five Business Days after a Responsible Officer becoming aware of the existence of any Default or Event of Default, a written notice specifying the nature and period of existence thereof and what action the Company
is taking or proposes to take with respect thereto; 
  
 (e) ERISA Matters — promptly, and in any event within five days after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an
ERISA Affiliate proposes to take with respect thereto: 
  
 (i) with respect to any Plan, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; or

  
 (ii) the taking by the PBGC of steps to
institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a
notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or 
  
 (iii) any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA Affiliate
pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to
Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect; and 
  
 (f) Requested Information — with reasonable
promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any Subsidiary or relating to the ability of the Company to perform its obligations hereunder and
under the Notes as from time to time may be reasonably requested by any such holder of Notes. 
  

 12 

 7.2. Officer’s Certificate. 
  
 Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be
accompanied by a certificate of a Senior Financial Officer setting forth: 
  
 (a) Covenant Compliance — the information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of Section 10.1 through Section 10.7,
inclusive, during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may
be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and 
  
 (b) Event of Default — a statement that such officer has reviewed the relevant terms hereof and has made, or caused to be
made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate
and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including any such event or condition
resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.

  
 7.3. Inspection. 
  
 The Company shall permit the representatives of each holder of Notes that is
an Institutional Investor: 
  
 (a) No
Default — if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of
the Company and its Subsidiaries with the Company’s officers, and, with the consent of the Company (which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Subsidiary, all at such
reasonable times and as often as may be reasonably requested in writing; and 
  
 (b) Default — if a Default or Event of Default then exists, at the expense of the Company, to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their
respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances, and accounts with their respective officers and independent public accountants (and by this
provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested. 
  
 8. PREPAYMENT OF THE NOTES. 
  
 8.1. No Scheduled Prepayments. 
  
 No regularly scheduled prepayments are due on the Notes prior to their stated maturity. 
  
 8.2. Optional Prepayments with Make-Whole Amount. 
  
 The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the
Notes of any series in an amount not less than $2,000,000 in the aggregate in the case of a partial prepayment, at 100% of the principal amount so prepaid, together with interest accrued to the date of prepayment, plus the Make-Whole Amount
determined for the prepayment date with respect to such principal 
  

 13 

 amount. The Company will give each holder of Notes of the series to be prepaid written notice of each optional prepayment
under this Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify such date, the aggregate principal amount of the Notes of such series to be prepaid on such date, the
principal amount of each Note of such series held by such holder to be prepaid (determined in accordance with Section 8.4), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be
accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such
computation. Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes of the series to be prepaid a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the
specified prepayment date. 
  
 8.3. Mandatory Offer to Prepay Upon Change of
Control. 
  
 (a) Notice of Change of
Control or Control Event — The Company will, within 15 Business Days after any Responsible Officer has knowledge of the occurrence of any Change of Control or Control Event, give notice of such Change of Control or Control Event to each
holder of Notes unless notice in respect of such Change of Control (or the Change of Control contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of this Section 8.3. If a Change of Control has occurred, such notice
shall contain and constitute an offer to prepay Notes as described in paragraph (c) of this Section 8.3 and shall be accompanied by the certificate described in paragraph (g) of this Section 8.3. 
  
 (b) Condition to Company Action — The Company
will not take any action that consummates or finalizes a Change of Control unless (i) at least 15 Business Days prior to such action it shall have given to each holder of Notes written notice containing and constituting an offer to prepay Notes
accompanied by the certificate described in paragraph (g) of this Section 8.3, and (ii) subject to the provisions of paragraph (d) below, contemporaneously with such action, it prepays all Notes required to be prepaid in accordance with this Section
8.3. 
  
 (c) Offer to Prepay Notes —
The offer to prepay Notes contemplated by paragraphs (a) and (b) of this Section 8.3 shall be an offer to prepay, in accordance with and subject to this Section 8.3, all, but not less than all, of the Notes held by each holder (in this case only,
“holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”). If such Proposed
Prepayment Date is in connection with an offer contemplated by subparagraph (a) of this Section 8.3, such date shall be not less than 30 days and not more than 60 days after the date of such offer. 
  
 (d) Acceptance; Rejection — A holder of Notes
may accept the offer to prepay made pursuant to this Section 8.3 by causing a notice of such acceptance to be delivered to the Company within 10 Business Days of receipt of the offer to prepay. A failure by a holder of Notes to respond to an offer
to prepay made pursuant to this Section 8.3, or to accept an offer as to all of the Notes held by the holder, within such time period shall be deemed to constitute rejection of such offer by such holder. 
  
 (e) Prepayment — Prepayment of the Notes to be
prepaid pursuant to this Section 8.3 shall be at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment and shall not require the payment of any Make-Whole Amount. The prepayment shall be
made on the Proposed Prepayment Date except as provided in paragraph (f) of this Section 8.3. 
  
 (f) Deferral Pending Change of Control — The obligation of the Company to prepay Notes pursuant to the offers required by
paragraphs (a) and (b) and accepted in accordance with paragraph (d) of this Section 8.3 is subject to the occurrence of the Change of Control in respect of which such offers and acceptances shall have been made. In the event that such Change of
Control does not occur on or prior to the Proposed Prepayment Date in respect thereof, the prepayment shall be deferred until and shall be made on the date on which such Change of Control occurs. The Company shall keep each holder of Notes
reasonably and timely informed of (i) any such deferral of the date of prepayment, (ii) the date on which 
  

 14 

 such Change of Control and the prepayment are expected to occur, and (iii) any determination by the
Company that efforts to effect such Change of Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to this Section 8.3 in respect of such Change of Control shall be deemed rescinded). Notwithstanding the
foregoing, in the event that the prepayment has not been made within 90 days after such Proposed Prepayment Date by virtue of the deferral provided for in this Section 8.3(f), the Company shall make a new offer to prepay in accordance with paragraph
(c) of this Section 8.3. 
  
 (g)
Officer’s Certificate — Each offer to prepay the Notes pursuant to this Section 8.3 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying: (i) the
Proposed Prepayment Date, (ii) that such offer is made pursuant to this Section 8.3, (iii) the principal amount of each Note offered to be prepaid, (iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed
Prepayment Date, (v) that the conditions of this Section 8.3 have been fulfilled and (vi) in reasonable detail, the nature and date or proposed date of the Change of Control. 
  
 8.4. Allocation of Partial Prepayments. 
  
 In the case of each partial prepayment of the Notes of a series, the principal amount of the Notes of such series to be prepaid shall be allocated among
all of the Notes of such series at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment. 
  
 8.5. Maturity; Surrender, etc. 
  
 In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment, together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount
when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to the Company and canceled and shall not
be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note. 
  
 8.6. Purchase of Notes. 
  
 The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes of any series except (a) upon the payment or prepayment of the Notes of a series
in accordance with the terms of this Agreement and the Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of all Notes of a series at the time outstanding upon the same terms and conditions. Any
such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 20 Business Days. If the holders of more than 25% of the principal amount of
the Notes of a series then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of Notes of such series of such offer shall be extended by the
number of days necessary to give each such remaining holder at least 5 Business Days from its receipt of such notice to accept such offer. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment, prepayment
or purchase of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes. 
  
 8.7. Make-Whole Amount. 
  
 The term “Make-Whole Amount” means, with respect to any Note, an amount equal to the excess, if any, of the Discounted Value of the
Remaining Scheduled Payments with respect to the Called Principal of such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount,
the following terms have the following meanings: 
  
 “Called Principal” means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the
context requires. 
  

 15 

 “Discounted Value” means, with respect to the Called Principal of any
Note, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted
financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield with respect to such Called Principal. 
  
 “Reinvestment Yield” means, with respect to
the Called Principal of any Note, .50% over the yield to maturity implied by (i) the yields reported, as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the
display designated as the “PX Screens” on the Bloomberg Financial Market Service (or such other display as may replace the PX Screens on Bloomberg Financial Market Service) for actively traded U.S. Treasury securities having a maturity
equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable, the Treasury Constant Maturity Series
Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (519) (or any comparable
successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. Such implied yield will be determined, if necessary, by (a)
converting U.S. Treasury bill quotations to bond-equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the actively traded U.S. Treasury security with the maturity closest to and greater than the
Remaining Average Life and (2) the actively traded U.S. Treasury security with the maturity closest to and less than the Remaining Average Life. 
  
 “Remaining Average Life” means, with respect to any Called Principal, the number of years (calculated to the nearest
one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (b) the number of
years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. 
  
 “Remaining Scheduled Payments” means, with
respect to the Called Principal of any Note, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its
scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of
interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or 12.1. 
  
 “Settlement Date” means, with respect to the Called Principal of any Note, the date on which such Called Principal is to
be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. 
  

 16 

 9. AFFIRMATIVE COVENANTS. 
  
 The Company covenants that so long as any of the Notes are outstanding: 
  
 9.1. Compliance with Law. 
  
 The Company will and will cause each of its Subsidiaries to comply with all
laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, Environmental Laws, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental
authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or
regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not reasonably be expected, individually or in the aggregate, to have a materially adverse effect on
the business, operations, affairs, financial condition, properties or assets of the Company and its Subsidiaries taken as a whole. 
  
 9.2. Insurance. 
  
 The Company will, and will cause each Subsidiary to, maintain, with financially sound and reputable insurers, insurance with respect to their respective
properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary
in the case of entities of established reputations engaged in the same or a similar business and similarly situated. 
  
 9.3. Maintenance of Properties. 
  
 The Company will and will cause each of its Subsidiaries to maintain and keep, or cause to be maintained and kept, their respective properties in good
repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent the Company or any Subsidiary from
discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance would not, individually or in the aggregate, have a
materially adverse effect on the business, operations, affairs, financial condition, properties or assets of the Company and its Subsidiaries taken as a whole. 
  

9.4. Payment of Taxes. 
  
 The Company will and will cause each of its Subsidiaries to file all income tax or similar tax returns required to be filed in any jurisdiction and to pay
and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies payable by any of them, to the extent such taxes and assessments have become due and payable and before they have
become delinquent, provided that neither the Company nor any Subsidiary need pay any such tax or assessment if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in
appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such taxes and assessments in the aggregate
would not reasonably be expected to have a materially adverse effect on the business, operations, affairs, financial condition, properties or assets of the Company and its Subsidiaries taken as a whole. 
  
 9.5. Corporate Existence, etc. 
  
 Subject to Sections 10.5 and 10.6, the Company will at all times preserve
and keep in full force and effect its corporate existence. Subject to Sections 10.5 and 10.6, the Company will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the
Company or a Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right
or franchise would not, individually or in the aggregate, have a materially adverse effect on the business, operations, affairs, financial condition, properties or assets of the Company and its Subsidiaries taken as a whole. 
  

 17 

 9.6. Pari Passu Ranking. 
  

The Company’s obligations under this Agreement and under the Notes will, upon issuance of the Notes, and will continue to, at all times until
payment in full of the Notes, rank at least pari passu, without preference or priority, with all of the Company’s other outstanding unsecured and unsubordinated obligations, except for those obligations that are mandatorily afforded
priority by operation of law (and not by contract). 
  
 10. NEGATIVE COVENANTS.

  
 The Company covenants that so long as any of the Notes
are outstanding: 
  
 10.1. Consolidated Net Debt. 
  
 The Company will not permit the ratio of Consolidated Net Debt to
Consolidated EBITDA (for the Company’s then most recently completed four fiscal quarters) to be greater than 3.0 to 1.0 as of the last day of any fiscal quarter. If, during the period for which Consolidated EBITDA is being calculated, the
Company or a Subsidiary has (i) acquired one or more Persons (or the assets thereof) or (ii) disposed of one or more Subsidiaries (or substantially all of the assets thereof), Consolidated EBITDA shall be calculated on a pro forma basis (including
adjustments to reflect consolidation savings) as if all of such acquisitions and all such dispositions had occurred on the first day of such period. 
  
 10.2. Adjusted Consolidated Net Worth. 
  
 The Company will not permit Adjusted Consolidated Net Worth as of the last day of any fiscal quarter to be less than $109,000,000 plus the cumulative sum
of 25% of Consolidated Net Income (but only if a positive number) for each fiscal quarter ending after December 31, 2003. 
  
 10.3. Priority Debt. 
  
 The Company will not permit Priority Debt to exceed 15% of Consolidated Total Capitalization as of the last day of any fiscal quarter of the Company.

  
 10.4. Liens. 
  
 The Company will not, and will not permit any Subsidiary to, permit to
exist, create, assume or incur, directly or indirectly, any Lien on its properties or assets, whether now owned or hereafter acquired, unless the Notes are equally and ratably secured by a Lien on the same property and assets pursuant to an
agreement reasonably acceptable to the Required Holders, except: 
  
 (a) Liens for taxes, assessments or governmental charges not then due and delinquent or the nonpayment of which is permitted by Section 9.4; 
  
 (b) Liens incidental to the conduct of business or the ownership of properties and assets (including
landlords’, lessors’, carriers’, operators’, warehousemen’s, mechanics’, materialmen’s and other similar Liens) and Liens to secure the performance of bids, tenders, leases or trade contracts, or to secure
statutory obligations (including obligations under workers compensation, unemployment insurance and other social security legislation), surety or appeal bonds or other Liens of like general nature incurred in the ordinary course of business and not
in connection with the borrowing of money; 
  
 (c) any attachment or judgment Lien, unless the judgment it secures has not, within 60 days after the entry thereof, been discharged or execution thereof stayed pending appeal, or has not been discharged within 60 days after the expiration
of any such stay; 
  
 (d) Liens securing Debt of
a Subsidiary owed to the Company or to a Wholly Owned Subsidiary; 
  

 18 

 (e) Liens existing on property or assets of the Company or any Subsidiary as of the date
of this Agreement that are described in Schedule 10.4; 
  
 (f) encumbrances in the nature of leases, subleases, zoning restrictions, easements, rights of way, minor survey exceptions and other rights and restrictions of record on the use of real property and defects in title arising or incurred in
the ordinary course of business, which, individually and in the aggregate, do not materially detract from the value of such property or assets subject thereto or materially impair the use of the property or assets subject thereto by the Company or
such Subsidiary; 
  
 (g) Liens (i) existing on
property at the time of its acquisition by the Company or a Subsidiary and not created in contemplation thereof, whether or not the Debt secured by such Lien is assumed by the Company or a Subsidiary; or (ii) on property created contemporaneously
with its acquisition or within 365 days of the acquisition or completion of construction or development thereof to secure or provide for all or a portion of the purchase price or cost of the acquisition, construction or development of such property
after the date of the First Closing; or (iii) existing on property of a Person at the time such Person is merged or consolidated with, or becomes a Subsidiary of, or substantially all of its assets are acquired by, the Company or a Subsidiary and
not created in contemplation thereof; provided that in the case of clauses (i), (ii) and (iii) such Liens do not extend to additional property of the Company or any Subsidiary (other than property that is an improvement to or is acquired for
specific use in connection with the subject property) and that the aggregate principal amount of Debt secured by each such Lien does not exceed the lesser of (y) the cost of acquisition or construction or (z) fair market value of the property
subject thereto (as determined in good faith by one or more officers of the Company to whom authority to enter into the transaction has been delegated by the board of directors); 
  
 (h) Liens resulting from extensions, renewals or replacements of Liens permitted by paragraphs (e) and (g),
provided that (i) there is no increase in the principal amount or decrease in maturity of the Debt secured thereby at the time of such extension, renewal or replacement, (ii) any new Lien attaches only to the same property theretofore subject to
such earlier Lien and (iii) immediately after such extension, renewal or replacement no Default or Event of Default would exist; and 
  
 (i) Liens securing Debt not otherwise permitted by paragraphs (a) through (h) of this Section 10.4, provided that Priority Debt shall not
exceed 15% of Consolidated Total Capitalization as of the last day of any fiscal quarter of the Company. 
  
 10.5. Sale of Assets. 
  
 Except as permitted by Section 10.6, the Company will not, and will not permit any Subsidiary to, sell, lease, transfer or otherwise dispose of, including by way of merger (collectively a “Disposition”), any assets, including
capital stock of Subsidiaries, in one or a series of transactions, to any Person, other than: 
  
 (a) Dispositions in the ordinary course of business; 
  
 (b) Dispositions by a Subsidiary to the Company or a Wholly Owned Subsidiary, provided that Dispositions by
a Subsidiary Guarantor shall be made only to another Subsidiary Guarantor; or 
  
 (c) Dispositions not otherwise permitted by clauses (a) or (b) of this Section 10.5, provided that (i) the aggregate net book value of all assets so disposed of in any twelve-month period pursuant to this Section
10.5(c) does not exceed 15% of Consolidated Total Assets as of the last day of then most recently ended fiscal quarter and (ii) after giving effect to such transaction, no Default or Event of Default shall exist. 
  
 Notwithstanding the foregoing, the Company may, or may permit a Subsidiary to, make a
Disposition and the assets subject to such Disposition shall not be subject to or included in the foregoing limitation and computation contained in clause (c) of the preceding sentence to the extent that the net proceeds from such Disposition are
within 365 days 
  

 19 

 of such Disposition (A) reinvested in productive assets to be used in the existing business of the Company or a
Subsidiary, or (B) applied to the payment or prepayment of the Notes or any other outstanding Debt of the Company or any Subsidiary ranking pari passu with or senior to the Notes (other than Debt owing to the Company, any Subsidiary or any
Affiliate or in respect of any revolving credit or similar credit facility providing the Company or any Subsidiary with the right to obtain loans or other extensions of credit from time to time, except to the extent that in connection with such
payment of Debt the availability of credit under such credit facility is permanently reduced by an amount not less than the amount of such proceeds applied to the payment of such Debt). For purposes of foregoing clause (B), the Company shall offer
to prepay (not less than 30 or more than 60 days following such offer) the Notes on a pro rata basis with such other Debt at a price of 100% of the principal amount of the Notes to be prepaid (without any Make-Whole Amount) together with interest
accrued to the date of prepayment; provided that if any holder of the Notes declines such offer, the proceeds that would have been paid to such holder shall be offered pro rata to the other holders of the Notes that have accepted the offer. A
failure by a holder of Notes to respond in writing not later than 10 Business Days prior to the proposed prepayment date to an offer to prepay made pursuant to this Section 10.5 shall be deemed to constitute a rejection of such offer by such holder.
 
  
 10.6. Mergers, Consolidations, etc. 
  
 The Company will not, and will not permit any Subsidiary to, consolidate
with or merge with any other Person or convey, transfer, sell or lease all or substantially all of its assets in a single transaction or series of transactions to any Person except that: 
  
 (a) the Company may consolidate or merge with any other Person or convey, transfer, sell or lease all or
substantially all of its assets in a single transaction or series of transactions to any Person, provided that: 
  
 (i) the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer, sale or
lease all or substantially all of the assets of the Company as an entirety, as the case may be, is a solvent Person organized and existing under the laws of the United States or any state thereof (including the District of Columbia), and, if the
Company is not such Person, (A) shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes and (B) shall have caused
to be delivered to each holder of any Notes an opinion of nationally recognized independent counsel or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such
assumption are enforceable in accordance with their terms and comply with the terms hereof; and 
  
 (ii) after giving effect to such transaction, no Default or Event of Default shall exist; and 
  
 (b) provided that immediately before and after giving effect
thereto, there shall exist no Default or Event of Default: 
  
 (i) any Subsidiary Guarantor may (x) merge into the Company (provided that the Company is the surviving corporation) or another Subsidiary Guarantor or (y) sell, transfer or lease all or any part of its assets to the
Company or another Subsidiary Guarantor, or (z) merge or consolidate with, or sell, transfer or lease all or substantially all of its assets to, any Person in a transaction (1) that is permitted by Section 10.5, or (2) as a result of which, such
Person becomes a Wholly Owned Subsidiary and executes and delivers to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of the Subsidiary Guaranty, together with the certificate
and opinion referred to in Section 10.7(b) and (c); and 
  

 20 

 (ii) any Subsidiary that is not a Subsidiary Guarantor may (x) merge into the Company
(provided that the Company is the surviving corporation) or a Wholly Owned Subsidiary or (y) sell, transfer or lease all or any part of its assets to the Company or a Wholly Owned Subsidiary, or (z) merge or consolidate with, or sell, transfer or
lease all or substantially all of its assets to, any Person in a transaction that is permitted by Section 10.5 or, as a result of which, such Person becomes a Wholly Owned Subsidiary. 
  
 No such conveyance, transfer, sale or lease of all or substantially all of the assets of the Company shall have the effect of releasing the
Company or any successor corporation that shall theretofore have become such in the manner prescribed in this Section 10.6 from its liability under this Agreement or the Notes. 
  
 10.7. Subsidiary Guaranty. 
  
 The Company will not permit any Subsidiary to become a guarantor or obligor of Debt owed to banks under the Credit Agreement unless such Subsidiary is, or
within 10 days becomes, a party to the Subsidiary Guaranty and, as a part thereof, delivers to each of the holders: 
  
 (a) a copy of an executed joinder to the Subsidiary Guaranty; 
  
 (b) a certificate signed by a Responsible Officer of the Company confirming the accuracy of the
representations and warranties in Sections 5.2, 5.6, 5.7 and 5.19, with respect to such Subsidiary and the Subsidiary Guaranty, as applicable; and 
  
 (c) an opinion of counsel (who may be counsel for the Company) reasonably satisfactory to the Required Holders addressed to each holder of
the Notes to the effect that the Subsidiary Guaranty of such Person has been duly authorized, executed and delivered and that the Subsidiary Guaranty constitutes the legal, valid and binding contract and agreement of such Person enforceable in
accordance with its terms, except as an enforcement of such terms may be limited by bankruptcy, insolvency, fraudulent conveyance and similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles.

  
 10.8. Nature of Business. 
  
 The Company will not, and will not permit any Subsidiary to, engage in any
business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its
Subsidiaries, taken as a whole, are engaged on the date of this Agreement as described in the Memorandum. 
  
 10.9. Transactions with Affiliates. 
  
 The Company will not, and will not permit any Subsidiary to, enter into directly or indirectly any Material transaction or Material group of related transactions (including the purchase, lease, sale or exchange of
properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and upon fair and
reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate. 
  
 11. EVENTS OF DEFAULT. 
  
 An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing: 
  
 (a) the Company defaults in the payment of any principal or
Make-Whole Amount, if any, on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or 
  

 21 

 (b) the Company defaults in the payment of any interest on any Note for more than five
Business Days after the same becomes due and payable; or 
  
 (c) the Company defaults in the performance of or compliance with any term contained in Section 7.1(d) or Sections 10.1 through 10.9; or 
  
 (d) the Company defaults in the performance of or compliance with any term contained herein (other than
those referred to in paragraphs (a), (b) and (c) of this Section 11) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written
notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this paragraph (d) of Section 11); or 
  
 (e) any representation or warranty made in writing by or on
behalf of the Company or any Subsidiary Guarantor or by any officer of the Company or any Subsidiary Guarantor in this Agreement, the Subsidiary Guaranty or in any writing furnished in connection with the transactions contemplated hereby or thereby
proves to have been false or incorrect in any material respect on the date as of which made; or 
  
 (f) (i) the Company or any Significant Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any
principal of or premium or make-whole amount or interest on any Debt that is outstanding in an aggregate principal amount of at least $15,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Significant
Subsidiary is in default in the performance of or compliance with any term of any evidence of any Debt that is outstanding in an aggregate principal amount of at least $15,000,000 or of any mortgage, indenture or other agreement relating thereto or
any other condition exists, and as a consequence of such default or condition such Debt has become, or has been declared, due and payable before its stated maturity or before its regularly scheduled dates of payment; or 
  
 (g) the Company or any Significant Subsidiary (i) is
generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition
in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a
custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any
of the foregoing; or 
  
 (h) a court or
governmental authority of competent jurisdiction enters an order appointing, without consent by the Company or any Significant Subsidiary, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any
substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any
jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any Significant Subsidiary, or any such petition shall be filed against the Company or any Significant Subsidiary and such petition shall not be dismissed within
60 days; or 
  
 (i) a final judgment or judgments
for the payment of money aggregating in excess of $15,000,000 are rendered against one or more of the Company and its Significant Subsidiaries, which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal,
or are not discharged within 60 days after the expiration of such stay; or 
  
 (j) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted
under section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is 
  

 22 

 reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA
section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit
liabilities” (within the meaning of section 4001(a)(18) of ERISA) under all Plans determined in accordance with Title IV of ERISA, shall exceed $15,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is reasonably expected
to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or
any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that would increase the liability of the Company or any Subsidiary thereunder; and any such event or events described
in clauses (i) through (vi) above, either individually or together with any other such event or events, would reasonably be expected to have a Material Adverse Effect; or 
  
 (k) the Subsidiary Guaranty ceases to be in full force and effect, except as provided in Section 22, or is
declared to be null and void in whole or in material part by a court or other governmental or regulatory authority having jurisdiction or the validity or enforceability thereof shall be contested by the Company or any Subsidiary Guarantor or any of
them renounces any of the same or denies that it has any or further liability thereunder. 
  
 As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in section 3 of ERISA. 
  
 12. REMEDIES ON DEFAULT, ETC. 
  
 12.1. Acceleration. 
  
 (a) If an Event of Default with respect to the Company described in paragraph (g) or (h) of Section 11
(other than an Event of Default described in clause (i) of paragraph (g) or described in clause (vi) of paragraph (g) by virtue of the fact that such clause encompasses clause (i) of paragraph (g)) has occurred, all the Notes then outstanding shall
automatically become immediately due and payable. 
  
 (b) If any other Event of Default has occurred and is continuing, holders of a majority or more in principal amount of the Notes at the time outstanding may at any time at its or their option, by notice or notices to the Company, declare
all the Notes then outstanding to be immediately due and payable. 
  
 (c) If any Event of Default described in paragraph (a) or (b) of Section 11 has occurred and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at
its or their option, by notice or notices to the Company, declare all the Notes held by it or them to be immediately due and payable. 
  
 Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by declaration, such Notes will forthwith mature and the entire
unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon and (y) the Make-Whole Amount determined in respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and
payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in
the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of
Default, is intended to provide compensation for the deprivation of such right under such circumstances. 
  

 23 

 12.2. Other Remedies. 
  
 If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due
and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of
any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 
  
 12.3. Rescission. 
  
 At any time after any Notes have been declared due and payable pursuant to clause (b) or (c) of Section 12.1, the holders of
a majority in principal amount of the Notes then outstanding, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all principal of and
Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any
overdue interest in respect of the Notes, at the Default Rate, (b) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to
Section 17, and (c) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or
impair any right consequent thereon. 
  
 12.4. No Waivers or Election of
Remedies, Expenses, etc. 
  
 No course of dealing and no
delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement or by
any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under
Section 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including reasonable
attorneys’ fees, expenses and disbursements. 
  
 13. REGISTRATION;
EXCHANGE; SUBSTITUTION OF NOTES. 
  
 13.1. Registration of Notes.

  
 The Company shall keep at its principal executive office
a register for the registration and registration of transfers of Notes. The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such
register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any
notice or knowledge to the contrary. The Company shall give to any holder of a Note that is an Institutional Investor, promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.

  
 13.2. Transfer and Exchange of Notes. 
  
 Upon surrender of any Note at the principal executive office of the Company
for registration of transfer or exchange (and in the case of a surrender for registration of transfer, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of such Note or his attorney duly
authorized in writing and accompanied by the address for notices of each transferee of such Note or part thereof), the Company shall execute and deliver within five Business Days, at the Company’s expense (except as provided below), one or more
new Notes (as requested by the holder thereof) of the same series in exchange therefor, in an aggregate 
  

 24 

 principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to
such Person as such holder may request and shall be substantially in the form of Exhibit 1(a), 1(b) or 1(c), as appropriate. Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered
Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes
shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000. Any transferee,
by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representations and agreements set forth in Section 6. 
  
 13.3. Replacement of Notes. 
  
 Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and 
  
 (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if
the holder of such Note is, or is a nominee for, an original Purchaser or any other Institutional Investor, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or 
  
 (b) in the case of mutilation, upon surrender and
cancellation thereof, 
  
 the Company at its own expense shall execute and deliver
within five Business Days, in lieu thereof, a new Note of the same series, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen,
destroyed or mutilated Note if no interest shall have been paid thereon. 
  
 14. PAYMENTS ON NOTES. 
  
 14.1. Place of Payment.

  
 Subject to Section 14.2, payments of principal,
Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in Chicago, Illinois at the principal office of LaSalle Bank National Association in such jurisdiction. The Company may at any time, by notice to each holder
of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction. 
  
 14.2. Home Office Payment. 
  
 So long as you or your nominee shall be the holder of any Note, and
notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such
purpose below your name in Schedule A, or by such other method or at such other address as you shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any
notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, you shall surrender such Note for cancellation, reasonably promptly after any such
request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1. Prior to any sale or other disposition of any Note held by you or your nominee you will, at your
election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2. The Company will
afford the benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by you under this Agreement and that has made the same agreement relating to such Note as you have made in this
Section 14.2. 
  

 25 

 15. EXPENSES, ETC. 
  
 15.1. Transaction Expenses. 
  
 Whether or not the transactions contemplated hereby or by the Subsidiary Guaranty are consummated, the Company will pay all costs and expenses (including
reasonable attorneys’ fees of a special counsel and, if reasonably required, local or other counsel) incurred by you and each Other Purchaser or holder of a Note in connection with such transactions and in connection with any amendments,
waivers or consents under or in respect of this Agreement, the Notes or the Subsidiary Guaranty (whether or not such amendment, waiver or consent becomes effective), including: (a) the costs and expenses incurred in enforcing or defending (or
determining whether or how to enforce or defend) any rights under this Agreement, the Notes or the Subsidiary Guaranty, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this
Agreement, the Notes or the Subsidiary Guaranty, or by reason of being a holder of any Note, (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any
Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby, by the Notes and by the Subsidiary Guaranty, and (c) the costs and expenses incurred in connection with (i) a merger, consolidation or similar
transaction, (ii) the delivery of a Subsidiary Guaranty pursuant to Section 10.7 or (iii) the release of a Subsidiary Guarantor pursuant to Section 22. The Company will pay, and will save you and each other holder of a Note harmless from, all claims
in respect of any fees, costs or expenses if any, of brokers and finders (other than those retained by you). 
  
 15.2. Survival. 
  
 The
obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement. 
  
 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT. 
  
 All representations and warranties contained herein shall survive the
execution and delivery of this Agreement and the Notes, the purchase or transfer by you of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any
investigation made at any time by or on behalf of you or any other holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations
and warranties of the Company under this Agreement. Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between you and the Company and supersede all prior agreements and understandings
relating to the subject matter hereof. 
  
 17. AMENDMENT AND WAIVER.

  
 17.1. Requirements. 
  
 This Agreement, the Notes and the Subsidiary Guaranty may be amended, and
the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the
provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to you unless consented to by you in writing, and (b) no such amendment or waiver may, without the written consent of the holder
of each Note at the time outstanding affected thereby, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time
of payment or method of computation of interest or of the Make-Whole Amount on, the Notes, (ii) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, or (iii) amend
any of Sections 8, 11(a), 11(b), 12, 17 or 20.  
  

 26 

 17.2. Solicitation of Holders of Notes. 
  
 (a) Solicitation. The Company will provide each holder of the Notes (irrespective of the amount of
Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in
respect of any of the provisions hereof or of the Notes. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 17 to each holder of outstanding Notes
promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes. 
  
 (b) Payment. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental
or additional interest, fee or otherwise, or grant any security, to any holder of Notes as consideration for or as an inducement to the entering into by any holder of Notes or any waiver or amendment of any of the terms and provisions hereof unless
such remuneration is concurrently paid, or security is concurrently granted, on the same terms, ratably to each holder of Notes then outstanding even if such holder did not consent to such waiver or amendment. 
  
 (c) Consent in Contemplation of Transfer. Any consent
made pursuant to this Section 17 by a holder of Notes that has transferred or has agreed to transfer its Notes to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a
condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for
such consent (and the consents of other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder. 
  
 17.3. Binding Effect, etc. 
  
 Any amendment or waiver consented to as provided in this Section 17 applies equally to all holders of Notes and is binding upon them and upon each future
holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default
not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and the holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of
any holder of such Note. As used herein, the term “this Agreement” or “the Agreement” and references thereto shall mean this Note Purchase Agreement as it may from time to time be amended or supplemented. 
  
 17.4. Notes held by Company, etc. 
  
 Solely for the purpose of determining whether the holders of the requisite
percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes
to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

  
 18. NOTICES. 
  
 All notices and communications provided for hereunder shall be in writing
and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or
(c) by a recognized overnight delivery service (with charges prepaid). Any such notice must be sent: 
  
 (i) if to you or your nominee, to you or it at the address specified for such communications in Schedule A, or at such other address as
you or it shall have specified to the Company in writing, 
  

 27 

 (ii) if to any other holder of any Note, to such holder at such address as such other
holder shall have specified to the Company in writing, or 
  
 (iii) if to the Company or any Subsidiary Guarantor, to the Company at its address set forth at the beginning hereof to the attention of the Chief Financial Officer, or at such other address as the Company shall have
specified to the holder of each Note in writing. 
  
 Notices under this Section 18
will be deemed given only when actually received. 
  
 19. REPRODUCTION OF
DOCUMENTS. 
  
 This Agreement and all documents relating
thereto, including (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by you at a Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or
hereafter furnished to you, may be reproduced by you by any photographic, photostatic, microfilm, microcard, miniature photographic or other similar process and you may destroy any original document so reproduced. The Company agrees and stipulates
that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such
reproduction was made by you in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any other holder
of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. 
  
 20. CONFIDENTIAL INFORMATION. 
  
 For the purposes of this Section 20, “Confidential Information” means information delivered or disclosed to you with respect to the Company or
any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by you as being
confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to you prior to the time of such disclosure, (b) subsequently becomes publicly known
through no act or omission by you or any Person acting on your behalf, (c) otherwise becomes known to you other than through disclosure by the Company or any Subsidiary, or (d) constitutes financial statements delivered to you under Section 7.1 that
are otherwise publicly available. You will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by you in good faith to protect confidential information of third parties delivered to you, provided that
you may deliver or disclose Confidential Information to (i) your directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by your
Notes), (ii) your financial advisors and other professional advisors whose duties require them to hold confidential the Confidential Information substantially in accordance with the terms of this Section 20, (iii) any other holder of any Note, (iv)
any Institutional Investor to which you sell or offer to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of
this Section 20), (v) any Person from which you offer to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any
federal or state regulatory authority having jurisdiction over you, (vii) the National Association of Insurance Commissioners or any similar organization, or any nationally recognized rating agency that requires access to information about your
investment portfolio or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to you, (x) in response to any subpoena or other legal
process, (y) in connection with any litigation to which you are a party or (z) if an Event of Default has occurred and is continuing, to the extent you may reasonably determine such delivery and disclosure to be necessary or appropriate in the
enforcement or for the protection of the rights and remedies under your Notes and this Agreement. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 20
as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other
than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 20. 
  

 28 

 21. SUBSTITUTION OF PURCHASER. 
  
 You shall have the right to substitute any one of your Affiliates as the purchaser of the Notes that you have agreed to
purchase hereunder, by written notice to the Company, which notice shall be signed by both you and such Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the
accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such notice, wherever the word “you” is used in this Agreement (other than in this Section 21), such word shall be deemed to refer to such Affiliate
in lieu of you. In the event that such Affiliate is so substituted as a purchaser hereunder and such Affiliate thereafter transfers to you all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, wherever
the word “you” is used in this Agreement (other than in this Section 21), such word shall no longer be deemed to refer to such Affiliate, but shall refer to you, and you shall have all the rights of an original holder of the Notes under
this Agreement. 
  
 22. RELEASE OF SUBSIDIARY GUARANTOR. 
  
 You and each subsequent holder of a Note agree to release any Subsidiary
Guarantor from the Subsidiary Guaranty upon written request of the Company if (i) such Subsidiary Guarantor ceases to be such as a result of a Disposition permitted by Sections 10.5 or 10.6 or (ii) such Subsidiary Guarantor has been or, concurrently
with the release by the holders of Notes, will be released as guarantor, or ceases to be an obligor, under and in respect of the Credit Agreement and any other Debt guaranteed by such Subsidiary or as to which such Subsidiary is obligated; provided,
however, that you and each subsequent holder will not be required to release a Subsidiary Guarantor from the Subsidiary Guaranty under the circumstances contemplated by clause (ii), if (A) immediately before or after giving effect to such release
there shall exist a Default or Event of Default, (B) such release is part of a plan of financing that contemplates such Subsidiary Guarantor guaranteeing, or being directly or indirectly obligated for, any other Debt of the Company, or (C) any fee
or other consideration is paid or given to any holder of Debt in connection with such release, and each holder of a Note does not receive equivalent consideration on a pro rata basis. Your obligation to release a Subsidiary Guarantor from the
Subsidiary Guaranty is conditioned upon your prior receipt of a certificate from a Senior Financial Officer of the Company stating that none of the circumstances described in clauses (A), (B) and (C) above are true.  
  
 23. MISCELLANEOUS. 
  
 23.1. Successors and Assigns. 
  
 All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including any subsequent holder of a Note) whether so expressed or not. 
  
 23.2. Payments Due on Non-Business Days. 
  
 Anything in this Agreement or the Notes to the contrary notwithstanding, any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a Business Day shall be made on the
next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day. 
  
 23.3. Severability. 
  
 Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such
provision in any other jurisdiction. 
  

 29 

 23.4. Construction. 
  
 Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein,
so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is
prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person. 
  
 23.5. Counterparts. 
  
 This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one
instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. 
  
 23.6. Governing Law. 
  
 This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of Illinois
excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State. 
  
 23.7. Submission to Jurisdiction. 
  
 Any litigation based hereon, or arising out of, under or in connection with this Agreement or the Notes may be brought and maintained in the courts of
the State of Illinois or in the United States District Court for the Northern District of Illinois. The Company expressly and irrevocably submits to the jurisdiction of the courts of the State of Illinois and of the United States District Court for
the Northern District of Illinois for the purpose of any such litigation as set forth above. The Company further irrevocably consents to the service of process by registered mail, postage prepaid, to the address specified in Section 18 or by
personal service within or without the State of Illinois. The Company expressly and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of venue of any such litigation brought in
any such court referred to above and any claim that any such litigation has been brought in an inconvenient forum. 
  
 23.8. Waiver of Jury Trial. 
  
 The Company waives any right to a trial by jury in any action or proceeding to enforce or defend any rights under this Agreement or the Notes or under
any amendment, instrument, document or Agreement delivered or that may in the future be delivered in connection herewith and agrees that any such action or proceeding shall be tried before a court and not before a jury. 
  
 *    *    *    *    * 
  

 30 

 If you are in agreement with the foregoing, please sign the form of agreement on the accompanying
counterpart of this Agreement and return it to the Company, whereupon the foregoing shall become a binding agreement between you and the Company. 
  

			
	 Very truly yours,

	
	 SYPRIS SOLUTIONS, INC.

		
	 By:
	 	 /s/ David D. Johnson

	 Name:
	 	 David D. Johnson

	 Title:
	 	 Vice President and CFO

  

 31 

 The foregoing is agreed to as of the date thereof. 
  

			
	THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA
		
	 By:
	 	 /s/ Ellen I. Whitaker

	 Name:
	 	 Ellen I. Whitaker

	 Title:
	 	 Director, Fixed Income Investments

  

					
	 CONNECTICUT GENERAL LIFE INSURANCE COMPANY

	 By: CIGNA Investments, Inc. (authorized agent)

			
	 	 	 By:
	 	 /s/ David M. Cass

	 	 	 Name:
	 	 David M. Cass

	 	 	 Title:
	 	 Managing Director

  

					
	 LIFE INSURANCE COMPANY OF NORTH AMERICA

	 By: CIGNA Investments, Inc. (authorized agent)

			
	 	 	 By:
	 	 /s/ David M. Cass

	 	 	 Name:
	 	 David M. Cass

	 	 	 Title:
	 	 Managing Director

  

			
	 JEFFERSON PILOT FINANCIAL INSURANCE COMPANY

		
	 By:
	 	 /s/ James E. McDonald, Jr.

	 Name:
	 	 JamesE.McDonald,Jr.

	 Title:
	 	 Vice President

	
	 JEFFERSON-PILOT LIFE INSURANCE COMPANY

		
	 By:
	 	 /s/ James E. McDonald, Jr.

	 Name:
	 	 JamesE.McDonald,Jr.

	 Title:
	 	 Vice President

	
	 JEFFERSON PILOT LIFEAMERICA INSURANCE COMPANY

		
	 By:
	 	 /s/ James E. McDonald, Jr.

	 Name:
	 	 James E. McDonald, Jr.

	 Title:
	 	 Vice President

  

 32 

 SCHEDULE B 
  

DEFINED TERMS 
  
 As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term: 
  
 “Adjusted Consolidated Net Worth” means, as of any date,
consolidated stockholders’ equity of the Company and its Subsidiaries on such date, less (a) minority interests in Subsidiaries and (b) the amount by which outstanding Restricted Investments on such date exceed 10% of consolidated
stockholders’ equity of the Company and its Subsidiaries on such date determined on a consolidated basis in accordance with GAAP. 
  
 “Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or
more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person. As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the
Company. 
  
 “Anti-Terrorism Order” means
Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)). 
  
 “Business Day” means (a) for the purposes of Section 8.7 only, any day other than a Saturday, a Sunday or a
day on which commercial banks in New York City are required or authorized to be closed, and (b) for the purposes of any other provision of this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in Chicago,
Illinois, New York City or Louisville, Kentucky are required or authorized to be closed. 
  
 “Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with
GAAP. 
  
 “Change of Control” means the
acquisition, directly or indirectly, through purchase or otherwise by any Person, or group of Persons acting in concert, other than Robert E. Gill, Jeffrey T. Gill or R. Scott Gill, members of their immediate family and their lineal descendants, or
trusts or any other entity created for their benefit, in one or more transactions, of beneficial ownership or control of securities representing more than 50% of the voting power of the Company’s Voting Stock (including the agreement to act in
concert by any such group of Persons who beneficially own or control securities representing more than 50% of the voting power of the Company’s Voting Stock). 
  
 “Closings” is defined in Section 3. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time. 
  
 “Company” means Sypris Solutions, Inc., a Delaware corporation. 
  
 “Confidential Information” is defined in Section 20. 
  
 “Consolidated Debt” means, as of any date, outstanding Debt of the Company and its Subsidiaries as of such date, determined on a
consolidated basis in accordance with GAAP. 
  
 “Consolidated EBITDA” means, for any period, the sum of Consolidated Net Income for such period, plus, to the extent deducted in determining such Consolidated Net Income, (i) federal, state, local and foreign 
  

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 income, value added and similar taxes, (ii) Consolidated Interest Expense, (iii) depreciation and amortization expense
and (iv) other non-cash expenses, in each case determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Interest Expense” means, for any period, the consolidated interest expense of the Company and its Subsidiaries for such
period determined in accordance with GAAP. 
  
 “Consolidated Net Debt” means, as of any date, outstanding Debt of the Company and its Subsidiaries as of such date less cash and cash equivalents of the Company and its Subsidiaries as of such date, each as determined on a
consolidated basis in accordance with GAAP. 
  
 “Consolidated Net Income” means, for any period, the net income or loss of the Company and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.  
  
 “Consolidated Total Assets” means, as of any date, the
assets and properties of the Company and its Subsidiaries as of such date, determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Total Capitalization” means, as of any date, the sum of Consolidated Debt and Adjusted Consolidated Net Worth as of such
date. 
  
 “Control Event” means: 
  
 (a) the execution by the Company or any of its Subsidiaries
or Affiliates of any agreement with respect to any proposed transaction or event or series of transactions or events that, individually or in the aggregate, may reasonably be expected to result in a Change of Control, or 
  
 (b) the execution of any written agreement that, when fully
performed by the parties thereto, would result in a Change of Control. 
  
 “Credit Agreement” means the 1999 Amended and Restated Loan Agreement dated as of October 27, 1999 among the Company, the Subsidiaries of the Company named as guarantors therein, Bank One, Kentucky, NA, as Agent Bank, and
the other lenders party thereto, as amended by the 2000A Amendment to Loan Documents dated as of November 9, 2000, the 2001A Amendment to Loan Documents dated as of February 15, 2001, the 2002A Amendment to Loan Documents dated as of January 1,
2002, the 2002B Amendment to Loan Documents dated as of July 3, 2002 and the 2003A Amendment to Loan Documents dated as of October 16, 2003, and as such agreement may be hereafter amended, modified, restated, supplemented, replaced, refinanced,
increased or reduced from time to time, and any successor credit agreement or similar facility. 
  
 “Debt” with respect to any Person means, at any time, without duplication, 
  
 (a) its liabilities for borrowed money; 
  
 (b) its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts
payable and other accrued liabilities arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property); 
  
 (c) all liabilities appearing on its balance sheet in
accordance with GAAP in respect of Capital Leases; 
  
 (d) all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities); and 
  
 (e) any Guaranty of such Person with respect to liabilities
of a type described in any of clauses (a) through (d) hereof. 
  

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 “Default” means an event or condition the occurrence or existence of which would, with
the lapse of time or the giving of notice or both, become an Event of Default. 
  
 “Default Rate” means that rate of interest that is the greater of (i) 2% per annum above the rate of interest stated in clause (a) of the first paragraph of the Notes or (ii) 2% over the rate of
interest publicly announced by LaSalle Bank National Association as its “base” or “prime” rate. 
  
 “Disposition” is defined in Section 10.5. 
  
 “Environmental Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but not limited
to those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations
promulgated thereunder from time to time in effect. 
  
 “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code. 
  
 “Event of Default” is defined in Section 11. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
  
 “First Closing” is defined in
Section 3. 
  
 “GAAP” means generally accepted
accounting principles as in effect from time to time in the United States of America. 
  
 “Governmental Authority” means 
  
 (a) the government of 
  
 (i) the United States of America or any state or other political subdivision thereof, or 
  
 (ii) any jurisdiction in which the Company or any Subsidiary
conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or 
  
 (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such
government. 
  
 “Guaranty” means, with respect to
any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any
other Person in any manner, whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person: 
  
 (a) to purchase such indebtedness or obligation or any property constituting security therefor; 
  
 (b) to advance or supply funds (i) for the purchase or
payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of
such indebtedness or obligation; 
  

 35 

 (c) to lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or 
  
 (d) otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof. 
  
 In any computation of the indebtedness or other liabilities of the obligor under any
Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.  
  
 “Hazardous Material” means any and all pollutants, toxic or hazardous wastes or any other substances that might pose a hazard to health
or safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage, or filtration of which is
or shall be, prohibited or penalized by any applicable law (including, asbestos, urea formaldehyde foam insulation and polychlorinated biphenyls). 
  
 “holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company
pursuant to Section 13.1. 
  
 “INHAM Exemption”
is defined in Section 6.2(e). 
  
 “Institutional
Investor” means (a) any original purchaser of a Note, (b) any holder of more than $2,000,000 in aggregate principal amount of the Notes at the time outstanding, and (c) any bank, trust company, savings and loan association or other
financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form. 
  
 “Investments” means all investments made, in cash or by
delivery of property, directly or indirectly, by any Person, in any other Person, whether by acquisition of shares of capital stock, indebtedness or other obligations or securities or by loan, Guaranty, advance, capital contribution or otherwise.

  
 “Lien” means, with respect to any Person, any
mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital
Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements). 
  
 “Make-Whole Amount” is defined in Section 8.7. 
  
 “Material” means material in relation to the business,
operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or
properties of the Company and its Subsidiaries taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement and the Notes, or (c) the ability of the Subsidiary Guarantors, taken as a whole, to perform their
obligations under the Subsidiary Guaranty, or (d) the validity or enforceability of this Agreement, the Notes or the Subsidiary Guaranty. 
  
 “Memorandum” is defined in Section 5.3. 
  
 “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in section 4001(a)(3) of ERISA).

  

 36 

 “NAIC Annual Statement” is defined in Section 6.2. 
  
 “Notes” is defined in Section 1. 
  
 “Officer’s Certificate” means a certificate of a Senior
Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate. 
  
 “Other Purchasers” is defined in Section 2. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto. 
  
 “Person” means an individual, partnership, corporation,
limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof. 
  
 “Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) that is or, within the preceding five years, has
been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any
liability. 
  
 “Priority Debt” means, as of any
date, the sum (without duplication) of (a) outstanding unsecured Debt of Subsidiaries other than (i) Debt owed to the Company or a Wholly Owned Subsidiary, (ii) any Guaranty of any Debt of the Company by any Subsidiary Guarantor, (iii) Debt of any
Subsidiary Guarantor owed to the lenders under the Credit Agreement, and (iv) Debt of a Person that is outstanding at the time it becomes a Subsidiary, provided that such Debt was not incurred in contemplation of such Person becoming a Subsidiary,
and (b) Debt of the Company and its Subsidiaries secured by Liens not otherwise permitted by the introductory paragraph of Section 10.4 or Sections 10.4(a) through (h). 
  
 “property” or “properties” means, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate. 
  
 “Purchaser” means each purchaser listed in Schedule A. 
  
 “QPAM Exemption” is defined in Section 6.2(d). 
  
 “Required Holders” means, at any time, the holders of at least a majority in principal amount of the Notes at the time outstanding
(exclusive of Notes then owned by the Company or any of its Affiliates). 
  
 “Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this agreement. 
  
 “Restricted Investments” means all Investments of the
Company and its Subsidiaries, other than: 
  
 (a)
property or assets to be used or consumed in the ordinary course of business; 
  
 (b) assets arising from the sale of goods or services in the ordinary course of business; 
  
 (c) Investments in Subsidiaries or in any Person that, as a result thereof, becomes a Subsidiary; 
  
 (d) Investments in common stock of the Company; 

 

 37 

 (e) Investments existing as of the date of this Agreement that are listed in the attached
Schedule B-1 and any earnings thereon; and 
  
 (f) Investments in: 
  
 (i) obligations,
maturing within one year from the date of acquisition, of or fully guaranteed by the United States of America, or an agency thereof, or Canada, or any province thereof; 
  
 (ii) state, or municipal securities having an effective maturity within one year from the date of
acquisition that are rated in one of the top two rating classifications by at least one nationally recognized rating agency; 
  
 (iii) certificates of deposit, banker’s acceptances or demand deposits (A) maturing more than 30 days after but within one year from
the date of acquisition thereof and issued by commercial banks whose long-term unsecured debt obligations (or the long-term unsecured debt obligations of the bank holding company owning all of the capital stock of such bank) are rated in one of the
top two rating classifications by at least one nationally recognized rating agency at the time of making such investment (“Acceptable Bank”), (B) maturing 30 days or less from the date of issuance thereof, issued by a commercial
bank rated at least investment grade by at least one nationally recognized rating agency at the time of making such investment or (C) that constitute the normal operating checking accounts of the Company and its Subsidiaries; 
  
 (iv) commercial paper maturing within 270 days from the date
of issuance that, at the time of acquisition, is rated in one of the top two rating classifications by at least one credit rating agency of recognized national standing; 
  
 (v) Repurchase Agreements; and 
  
 (vi) money market instrument programs that are properly classified as current assets in accordance with
GAAP. 
  
 As used in this definition of Restricted Investments,

  
 “Acceptable Broker-Dealer”
means any Person other than a natural person (i) that is registered as a broker or dealer pursuant to the Exchange Act and (ii) whose long-term unsecured debt obligations are rated in one of the top two rating classifications by at least one
nationally recognized rating agency. 
  
 “Repurchase Agreement” means any written agreement 
  
 (a) that provides for (i) the transfer of one or more United States Governmental Securities in an aggregate principal amount at least equal to the amount of the Transfer Price (defined below) to the Company or any of
its Subsidiaries from an Acceptable Bank or an Acceptable Broker-Dealer against a transfer of funds (the “Transfer Price”) by the Company or such Subsidiary to such Acceptable Bank or Acceptable Broker-Dealer, and (ii) a
simultaneous agreement by the Company or such Subsidiary, in connection with such transfer of funds, to transfer to such Acceptable Bank or Acceptable Broker-Dealer the same or substantially similar United States Governmental Securities for a price
not less than the Transfer Price plus a reasonable return thereon at a date certain not later than 365 days after such transfer of funds, 
  
 (b) in respect of which the Company or such Subsidiary has the right, whether by contract or pursuant to applicable law, to liquidate
such agreement upon the occurrence of any default thereunder, and 
  

 38 

 (c) in connection with which the Company or such Subsidiary, or an agent thereof, shall
have taken all action required by applicable law or regulations to perfect a Lien in such United States Governmental Securities. 
  
 “United States Governmental Security” means any direct obligation of, or obligation guaranteed by, the United States of
America, or any agency controlled or supervised by or acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America, so long as such obligation or guarantee shall have the
benefit of the full faith and credit of the United States of America which shall have been pledged pursuant to authority granted by the Congress of the United States of America. 
  
 “Second Closing” is defined in Section 3. 
  
 “Securities Act” means the Securities Act of 1933, as amended from time to time. 
  
 “Senior Financial Officer” means the chief financial
officer, principal accounting officer, treasurer or controller of the Company. 
  
 “Series A Notes” is defined in Section 1. 
  
 “Series B Notes” is defined in Section 1. 
  
 “Series C Notes” is defined in Section 1. 
  
 “Significant Subsidiary” means, as of the date of determination, any Subsidiary that would at such time account for more than 10% of (i) Consolidated Total Assets as of the end of the most recently
completed fiscal quarter or (ii) consolidated revenue of the Company and its Subsidiaries for the four fiscal quarters ending as of the end of the most recently completed fiscal quarter. 
  
 “Source” is defined in Section 6.2. 
  
 “Subsidiary” means, as to any Person, any corporation, association or other business entity in which such
Person or one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of
such entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such Person or one or more of its Subsidiaries (unless such partnership can and does ordinarily take major business actions
without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company. 
  
 “Subsidiary Guarantor” is defined in Section 1. 

 
 “Subsidiary Guaranty” is defined in Section 1.

  
 “Third Closing” is defined in Section 3.

  
 “this Agreement” or “the Agreement”
is defined in Section 17.3. 
  
 “USA Patriot Act”
means Public Law 107-56 of the United States of America, United and Strengthening America by Providing Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001. 
  

 39 

 “Voting Stock” means the capital stock of any class or classes of a corporation, or
equivalent interests in any other Person, having power under ordinary circumstances to vote for the election of members of the board of directors of such corporation, or person performing similar functions (irrespective of whether or not at the time
stock of any of the class or classes, or equivalent interests, shall have or might have special voting power or rights by reason of the happening of any contingency). 
  
 “Wholly Owned Subsidiary” means, at any time, any Subsidiary 100% of all of the equity interests (except
directors’ qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly Owned Subsidiaries at such time. 
  

 40 

 Certain exhibits and schedules have been omitted because they are not material. Copies of such omitted exhibits and
schedules will be supplementally furnished to the Commission upon request 
  

 41

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