Document:

VANGUARD HEALTH SYSTEMS, INC.

EXHIBIT 4.10

SUPPLEMENTAL INDENTURE

                        FIFTH SUPPLEMENTAL INDENTURE (this “Supplemental Senior Subordinated Indenture”), dated as of  July
1, 2007, among  Vanguard Health Financial Company, LLC, a Delaware limited liability company ( the “New Guarantor”) and a subsidiary of Vanguard Health Holding Company II, LLC, a Delaware limited liability company (“VHS Holdco
II”), Vanguard Holding Company II, Inc., a Delaware corporation and a wholly owned subsidiary of VHS Holdco II (together with VHS Holdco II, the “Issuers”), Vanguard Health Holding Company I, LLC, Vanguard Health Systems, Inc. and U.S.
Bank National Association, as trustee under the Senior Subordinated Indenture referred to below (the “Trustee”).

WITNESSETH

                        WHEREAS, the Issuers and the existing Guarantors have heretofore executed and delivered to the Trustee an indenture (as
amended, supplemented or otherwise modified, the “Senior Subordinated Indenture”), dated as of September 23, 2004 providing for the issuance of 9% Senior Subordinated Notes due 2014 (the “Senior Subordinated Notes”);

                        WHEREAS, Section 4.16 of the Senior Subordinated Indenture provides that under certain circumstances the New Guarantor shall
execute and deliver to the Trustee a supplemental indenture pursuant to which the New Guarantor shall unconditionally guarantee all of the Issuers’ Obligations under the Senior Subordinated Notes and the Senior Subordinated Indenture on the terms and conditions
set forth herein (the “Note Guarantee”); and

                        WHEREAS, pursuant to Section 9.01 of the Senior Subordinated Indenture, the Trustee and the Issuers are authorized to execute
and deliver this Supplemental Senior Subordinated Indenture.

                        NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is
hereby acknowledged, the New Guarantor, the Issuers and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Senior Subordinated Notes as follows:

                        1.         DEFINED TERMS.  Defined terms used herein without definition shall
have the meanings assigned to them in the Senior Subordinated Indenture.

                        2.         AGREEMENT TO GUARANTEE.  The New Guarantor hereby agrees, jointly and
severally with all existing Guarantors (if any), to provide an unconditional Guarantee on the terms and subject to the conditions set forth in Article 12 of the Senior Subordinated Indenture and to be bound by all other applicable provisions of the Senior
Subordinated Indenture and the Senior Subordinated Notes and to perform all of the obligations and agreements of a Guarantor under the Senior Subordinated

1

Indenture.  The Guarantee of the New Guarantor shall be subordinated to Senior Debt as provided in the Senior Subordinated Note Indenture

                        3.         NO RECOURSE AGAINST OTHERS.  No past, present or future director,
manager, officer, employee, incorporator, stockholder or member of the Issuers, any parent entity of the Issuers or any Subsidiary, as such, will have any liability for any obligations of the Issuers or the Guarantors under the Senior Subordinated Notes, this Senior
Subordinated Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder of Senior Subordinated Notes by accepting a Senior Subordinated Note waives and releases all such
liability.  The waiver and release are part of the consideration for issuance of the Senior Subordinated Notes.  The waiver may not be effective to waive liabilities under the federal securities laws.

                        4.         NOTICES.  All notices or other communications to the New Guarantor
shall be given as provided in Section 14.02 of the Senior Subordinated Indenture.

                        5.         RATIFICATION OF INDENTURE; SUPPLEMENTAL INDENTURES PART OF
INDENTURE.  Except as expressly amended hereby, the Senior Subordinated Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Senior Subordinated
Indenture shall form a part of the Senior Subordinated Indenture for all purposes, and every holder of Senior Subordinated Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

                        6.         GOVERNING LAW.  THIS INDENTURE, THE NOTES AND THE SENIOR SUBORDINATED
NOTE GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                        7.         COUNTERPARTS.  The parties may sign any number of copies of this
Supplemental Senior Subordinated Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

                        8.         EFFECT OF HEADINGS.  The Section headings herein are for convenience
only and shall not affect the construction hereof.

                        9.         TRUSTEE MAKES NO REPRESENTATION.  The Trustee makes no representation
as to the validity or sufficiency of this Supplemental Indenture.

2

                        IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of
the date first above written.

Dated: July 1, 2007

                                                                             
VANGUARD HEALTH FINANCIAL

                                                                             
COMPANY, LLC

                                                                             
By:/s/ James H. Spalding                                     

                                                                             
Name: James H. Spalding

                                                                             
Title: Senior Vice President

                                                                             
VANGUARD HEALTH HOLDING 

                                                                             
COMPANY II, LLC

                                                                             
By:/s/ James H.
Spalding                                     

                                                                             
Name: James H. Spalding

                                                                             
Title: Senior Vice President

                                                                             
VANGUARD HOLDING COMPANY

                                                                              
II,INC.

                                                                             
By:/s/ James H.
Spalding                                     

                                                                             
Name: James H. Spalding

                                                                             
Title: Senior Vice President

                                                                             
VANGUARD HEALTH HOLDING 

                                                                             
COMPANY I, LLC

                                                                             
By:/s/ James H.
Spalding                                     

                                                                             
Name: James H. Spalding

                                                                             
Title: Senior Vice President

                                                                             
VANGUARD HEALTH SYSTEMS, INC.

                                                                             
By:/s/ James H.
Spalding                                     

                                                                             
Name: James H. Spalding

                                                                             
Title: Senior Vice President

3

                                                                             
U.S. BANK NATIONAL

                                                                             
ASSOCIATION

                                                                             
as Trustee

                                                                             
By:/s/ Richard
Prokosch                                      

                                                                             
Name: Richard Prokosch

                                                                             
Title: Vice President

4Exhibit 10.1

 

Execution Version

 

 

Published CUSIP Number: 767733AA6

 

$325,000,000

FIRST LIEN CREDIT AGREEMENT

 

Dated as of January 11, 2007

 

among

 

RISKMETRICS GROUP HOLDINGS, LLC,

as Borrower,

 

RISKMETRICS GROUP, INC.,

as
Holdings,

 

BANK OFAMERICA, N.A.,

as Administrative Agent, Swing Line Lender and

L/C Issuer,

 

and

 

The Other Lenders Party Hereto

 

BANC OF AMERICA SECURITIES LLC

and

 

CREDIT SUISSE SECURITIES (USA) LLC,

as Joint Lead Arrangers and Joint Book Managers

 

 

 

TABLE
OF CONTENTS

 

Section

 

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  1.01.

  	
   

  	
  Defined
  Terms

  	
   

  	
  2

  
	
  1.02.

  	
   

  	
  Other
  Interpretive Provisions

  	
   

  	
  35

  
	
  1.03.

  	
   

  	
  Accounting
  Terms

  	
   

  	
  36

  
	
  1.04.

  	
   

  	
  Rounding

  	
   

  	
  36

  
	
  1.05.

  	
   

  	
  Times of Day

  	
   

  	
  36

  
	
  1.06.

  	
   

  	
  Letter of
  Credit Amounts

  	
   

  	
  36

  
	
  1.07.

  	
   

  	
  Currency
  Equivalents Generally

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
  THE COMMITMENTS AND CREDIT EXTENSIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.01.

  	
   

  	
  The Loans

  	
   

  	
  37

  
	
  2.02.

  	
   

  	
  Borrowings,
  Conversions and Continuations of Loans

  	
   

  	
  37

  
	
  2.03.

  	
   

  	
  Letters of
  Credit

  	
   

  	
  39

  
	
  2.04.

  	
   

  	
  Swing Line Loans

  	
   

  	
  49

  
	
  2.05.

  	
   

  	
  Prepayments

  	
   

  	
  52

  
	
  2.06.

  	
   

  	
  Termination
  or Reduction of Commitments

  	
   

  	
  56

  
	
  2.07.

  	
   

  	
  Repayment of
  Loans

  	
   

  	
  57

  
	
  2.08.

  	
   

  	
  Interest

  	
   

  	
  58

  
	
  2.09.

  	
   

  	
  Fees

  	
   

  	
  58

  
	
  2.10.

  	
   

  	
  Computation
  of Interest and Fees

  	
   

  	
  59

  
	
  2.11.

  	
   

  	
  Evidence of Debt

  	
   

  	
  59

  
	
  2.12.

  	
   

  	
  Payments
  Generally; Administrative Agent’s Clawback

  	
   

  	
  60

  
	
  2.13.

  	
   

  	
  Sharing of
  Payments by Lenders

  	
   

  	
  62

  
	
  2.14.

  	
   

  	
  Increase in
  Facility

  	
   

  	
  63

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.01.

  	
   

  	
  Taxes

  	
   

  	
  65

  
	
  3.02.

  	
   

  	
  Illegality

  	
   

  	
  67

  
	
  3.03.

  	
   

  	
  Inability to
  Determine Rates

  	
   

  	
  67

  
	
  3.04.

  	
   

  	
  Increased
  Costs; Reserves on Eurodollar Rate Loans

  	
   

  	
  68

  
	
  3.05.

  	
   

  	
  Compensation
  for Losses

  	
   

  	
  69

  
	
  3.06.

  	
   

  	
  Mitigation
  Obligations; Replacement of Lenders

  	
   

  	
  70

  
	
  3.07.

  	
   

  	
  Survival

  	
   

  	
  70

  
	
   

  	
   

  	
  ARTICLE IV

  	
   

  	
   

  
	
   

  	
   

  	
  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.01.

  	
   

  	
  Conditions
  of Initial Credit Extension

  	
   

  	
  70

  

 

i

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  4.02.

  	
   

  	
  Conditions
  to All Credit Extensions

  	
   

  	
  74

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE V

  	
   

  	
   

  
	
   

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.01.

  	
   

  	
  Existence,
  Qualification and Power

  	
   

  	
  75

  
	
  5.02.

  	
   

  	
  Authorization;
  No Contravention

  	
   

  	
  75

  
	
  5.03.

  	
   

  	
  Governmental
  Authorization; Other Consents

  	
   

  	
  75

  
	
  5.04.

  	
   

  	
  Binding
  Effect

  	
   

  	
  76

  
	
  5.05.

  	
   

  	
  Financial
  Statements; No Material Adverse Effect

  	
   

  	
  76

  
	
  5.06.

  	
   

  	
  Litigation

  	
   

  	
  77

  
	
  5.07.

  	
   

  	
  No Default

  	
   

  	
  77

  
	
  5.08.

  	
   

  	
  Ownership of
  Property

  	
   

  	
  77

  
	
  5.09.

  	
   

  	
  Environmental
  Compliance

  	
   

  	
  77

  
	
  5.10.

  	
   

  	
  Insurance

  	
   

  	
  78

  
	
  5.11.

  	
   

  	
  Taxes

  	
   

  	
  78

  
	
  5.12.

  	
   

  	
  ERISA
  Compliance

  	
   

  	
  78

  
	
  5.13.

  	
   

  	
  Subsidiaries;
  Loan Parties

  	
   

  	
  79

  
	
  5.14.

  	
   

  	
  Margin
  Regulations; Investment Company Act

  	
   

  	
  80

  
	
  5.15.

  	
   

  	
  Disclosure

  	
   

  	
  80

  
	
  5.16.

  	
   

  	
  Intellectual
  Property; Licenses, Etc

  	
   

  	
  80

  
	
  5.17.

  	
   

  	
  Solvency

  	
   

  	
  81

  
	
  5.18.

  	
   

  	
  Collateral
  Documents

  	
   

  	
  81

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  VI

  	
   

  	
   

  
	
   

  	
   

  	
  AFFIRMATIVE COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.01.

  	
   

  	
  Financial
  Statements

  	
   

  	
  81

  
	
  6.02.

  	
   

  	
  Certificates;
  Other Information

  	
   

  	
  82

  
	
  6.03.

  	
   

  	
  Notices

  	
   

  	
  84

  
	
  6.04.

  	
   

  	
  Payment of
  Obligations

  	
   

  	
  85

  
	
  6.05.

  	
   

  	
  Preservation
  of Existence, Etc.

  	
   

  	
  85

  
	
  6.06.

  	
   

  	
  Maintenance
  of Properties

  	
   

  	
  86

  
	
  6.07.

  	
   

  	
  Maintenance
  of Insurance

  	
   

  	
  86

  
	
  6.08.

  	
   

  	
  Compliance
  with Laws

  	
   

  	
  86

  
	
  6.09.

  	
   

  	
  Books and
  Records

  	
   

  	
  86

  
	
  6.10.

  	
   

  	
  Inspection
  Rights

  	
   

  	
  86

  
	
  6.11.

  	
   

  	
  Use of Proceeds

  	
   

  	
  86

  
	
  6.12.

  	
   

  	
  Covenant to
  Guarantee Obligations and Give Security

  	
   

  	
  87

  
	
  6.13.

  	
   

  	
  Compliance
  with Environmental Laws

  	
   

  	
  88

  
	
  6.14.

  	
   

  	
  Further
  Assurances

  	
   

  	
  89

  
	
  6.15.

  	
   

  	
  Interest
  Rate Hedging

  	
   

  	
  89

  
	
  6.16.

  	
   

  	
  Material
  Contracts

  	
   

  	
  89

  
	
  6.17.

  	
   

  	
  Designation
  of Unrestricted Subsidiaries

  	
   

  	
  89

  
	
  6.18.

  	
   

  	
  Post-Closing
  Covenant

  	
   

  	
  90

  

 

ii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
  ARTICLE VII

  	
   

  	
   

  
	
   

  	
   

  	
  NEGATIVE COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.01.

  	
   

  	
  Liens

  	
   

  	
  91

  
	
  7.02.

  	
   

  	
  Indebtedness

  	
   

  	
  93

  
	
  7.03.

  	
   

  	
  Investments

  	
   

  	
  95

  
	
  7.04.

  	
   

  	
  Fundamental
  Changes

  	
   

  	
  96

  
	
  7.05.

  	
   

  	
  Dispositions

  	
   

  	
  97

  
	
  7.06.

  	
   

  	
  Restricted
  Payments

  	
   

  	
  98

  
	
  7.07.

  	
   

  	
  Change in
  Nature of Business

  	
   

  	
  100

  
	
  7.08.

  	
   

  	
  Transactions
  with Affiliates

  	
   

  	
  100

  
	
  7.09.

  	
   

  	
  Burdensome
  Agreements

  	
   

  	
  101

  
	
  7.10.

  	
   

  	
  Use of
  Proceeds

  	
   

  	
  101

  
	
  7.11.

  	
   

  	
  Consolidated
  Leverage Ratio

  	
   

  	
  102

  
	
  7.12.

  	
   

  	
  Capital
  Expenditures

  	
   

  	
  102

  
	
  7.13.

  	
   

  	
  Amendments
  of Organization Documents

  	
   

  	
  102

  
	
  7.14.

  	
   

  	
  Accounting
  Changes

  	
   

  	
  103

  
	
  7.15.

  	
   

  	
  Prepayments,
  Etc. of Indebtedness

  	
   

  	
  103

  
	
  7.16.

  	
   

  	
  Amendment,
  Etc. of Second Lien Loan Documents and Indebtedness

  	
   

  	
  103

  
	
  7.17.

  	
   

  	
  Holding
  Company

  	
   

  	
  103

  
	
  7.18.

  	
   

  	
  General Partner

  	
   

  	
  104

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VIII

  	
   

  	
   

  
	
   

  	
   

  	
  EVENTS OF DEFAULT AND REMEDIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.01.

  	
   

  	
  Events of
  Default

  	
   

  	
  104

  
	
  8.02.

  	
   

  	
  Remedies
  upon Event of Default

  	
   

  	
  107

  
	
  8.03.

  	
   

  	
  Application
  of Funds

  	
   

  	
  108

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IX

  	
   

  	
   

  
	
   

  	
   

  	
  ADMINISTRATIVE AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.01.

  	
   

  	
  Appointment
  and Authority

  	
   

  	
  109

  
	
  9.02.

  	
   

  	
  Rights as a
  Lender

  	
   

  	
  109

  
	
  9.03.

  	
   

  	
  Exculpatory
  Provisions

  	
   

  	
  109

  
	
  9.04.

  	
   

  	
  Reliance by
  Administrative Agent

  	
   

  	
  110

  
	
  9.05.

  	
   

  	
  Delegation
  of Duties

  	
   

  	
  111

  
	
  9.06.

  	
   

  	
  Resignation
  of Administrative Agent

  	
   

  	
  111

  
	
  9.07.

  	
   

  	
  Non-Reliance
  on Administrative Agent and Other Lenders

  	
   

  	
  112

  
	
  9.08.

  	
   

  	
  No Other
  Duties, Etc.

  	
   

  	
  112

  
	
  9.09.

  	
   

  	
  Administrative
  Agent May File Proofs of Claim

  	
   

  	
  112

  
	
  9.10.

  	
   

  	
  Collateral
  and Guaranty Matters

  	
   

  	
  113

  

 

iii

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
  ARTICLE
  X

  	
   

  	
   

  
	
   

  	
   

  	
  CONTINUING GUARANTY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.01

  	
   

  	
  Guaranty

  	
   

  	
  114

  
	
  10.02.

  	
   

  	
  Rights of
  Lenders

  	
   

  	
  114

  
	
  10.03.

  	
   

  	
  Certain
  Waivers

  	
   

  	
  114

  
	
  10.04.

  	
   

  	
  Obligations
  Independent

  	
   

  	
  115

  
	
  10.05.

  	
   

  	
  Subrogation

  	
   

  	
  115

  
	
  10.06.

  	
   

  	
  Termination;
  Reinstatement

  	
   

  	
  115

  
	
  10.07.

  	
   

  	
  Subordination

  	
   

  	
  115

  
	
  10.08.

  	
   

  	
  Stay of
  Acceleration

  	
   

  	
  116

  
	
  10.09.

  	
   

  	
  Condition of
  Borrower

  	
   

  	
  116

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE
  XI

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.01.

  	
   

  	
  Amendments,
  Etc

  	
   

  	
  116

  
	
  11.02.

  	
   

  	
  Notices;
  Effectiveness; Electronic Communications

  	
   

  	
  118

  
	
  11.03. 

  	
   

  	
  No Waiver; Cumulative
  Remedies

  	
   

  	
  120

  
	
  11.04. 

  	
   

  	
  Expenses; Indemnity;
  Damage Waiver

  	
   

  	
  120

  
	
  11.05. 

  	
   

  	
  Payments Set Aside

  	
   

  	
  122

  
	
  11.06.

  	
   

  	
  Successors and Assigns

  	
   

  	
  123

  
	
  11.07. 

  	
   

  	
  Treatment of Certain
  Information; Confidentiality

  	
   

  	
  127

  
	
  11.08.

  	
   

  	
  Right of
  Setoff

  	
   

  	
  128

  
	
  11.09.

  	
   

  	
  Interest
  Rate Limitation

  	
   

  	
  128

  
	
  11.10.

  	
   

  	
  Counterparts;
  Integration; Effectiveness

  	
   

  	
  128

  
	
  11.11.

  	
   

  	
  Survival of
  Representations and Warranties

  	
   

  	
  129

  
	
  11.12.

  	
   

  	
  Severability

  	
   

  	
  129

  
	
  11.13. 

  	
   

  	
  Replacement of Lenders

  	
   

  	
  129

  
	
  11.14.

  	
   

  	
  Governing
  Law; Jurisdiction, Etc.

  	
   

  	
  130

  
	
  11.15.

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  131

  
	
  11.16.

  	
   

  	
  No Advisory or Fiduciary
  Responsibility

  	
   

  	
  131

  
	
  11.17.

  	
   

  	
  USA PATRIOT Act Notice

  	
   

  	
  132

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SIGNATURES

  	
   

  	
  S-1

  

 

iv

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.01(a)

  	
   

  	
  Indebtedness
  to be Repaid

  
	
  2.01

  	
   

  	
  Commitments
  and Applicable Percentages

  
	
  5.03

  	
   

  	
  Certain
  Authorizations

  
	
  5.13

  	
   

  	
  Subsidiaries
  and Other Equity Investments; Loan Parties

  
	
  5.17

  	
   

  	
  Intellectual
  Property Matters

  
	
  6.12

  	
   

  	
  Guarantors

  
	
  7.01(b)

  	
   

  	
  Existing
  Liens

  
	
  7.02

  	
   

  	
  Existing
  Indebtedness

  
	
  7.03(f)

  	
   

  	
  Existing
  Investments

  
	
  11.02

  	
   

  	
  Administrative
  Agent’s Office, Certain Addresses for Notices

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Form
  of

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  Committed
  Loan Notice

  
	
  B

  	
   

  	
  Swing Line
  Loan Notice

  
	
  C-1

  	
   

  	
  Term B Note

  
	
  C-2

  	
   

  	
  Revolving
  Credit Note

  
	
  D

  	
   

  	
  Compliance
  Certificate

  
	
  E

  	
   

  	
  Assignment
  and Assumption

  
	
  F

  	
   

  	
  Guaranty

  
	
  G

  	
   

  	
  Security Agreement

  
	
  H

  	
   

  	
  Opinion Matters

  
	
  I

  	
   

  	
  Perfection
  Certificate

  
	
  J

  	
   

  	
  Intercreditor
  Agreement

  
	
  K

  	
   

  	
  Notice of
  Election

  

 

v

 

FIRST LIEN CREDIT AGREEMENT

 

This FIRST
LIEN CREDIT AGREEMENT (“Agreement”) is entered into as of January 11, 2007,
among RISKMETRICS GROUP HOLDINGS LLC, a Delaware limited liability company (the
“Borrower”), RISKMETRICS GROUP, INC., a Delaware corporation (“Holdings”),
each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), BANK OF AMERICA, N.A., as Administrative
Agent, Swing Line Lender and L/C Issuer and BANC OF AMERICA SECURITIES LLC and
CREDIT SUISSE SECURITIES (USA) LLC, as joint lead arrangers and joint book
managers (collectively, the “Arrangers”).

 

PRELIMINARY STATEMENTS:

 

Pursuant to
the Agreement and Plan of Merger dated October 31, 2006 among RiskMetrics,
Inc., formerly known as RiskMetrics Group, Inc. (“RiskMetrics”), RMG
Holdco, Inc. (“RMG Holdco”), RMG Merger Sub, Inc. (“RMG Merger Sub”),
ISS Merger Sub, Inc. (“ISS Merger Sub”), and Institutional Shareholder
Services Holdings, Inc. (“Seller”), as amended by Amendment No. 1 to
Agreement and Plan of Merger dated November 14, 2006 among RiskMetrics, RMG
Holdco, RMG Merger Sub, ISS Merger Sub and Seller and Amendment No. 2 dated
November 30, 2006 among Borrower, RiskMetrics, RMG Holdco, RMG Merger Sub, ISS
Merger Sub and Seller (collectively, the “Merger Agreement”) RiskMetrics
has agreed to consummate a business combination between RiskMetrics and Seller
as follows: The Borrower will acquire all of the capital stock of RiskMetrics
and Seller by means of (i) the merger of a wholly owned subsidiary, RMG Merger
Sub, Inc. with and into RiskMetrics (the “RMG Merger”), with RiskMetrics
continuing as the surviving corporation, and (ii) the merger of a wholly owned
subsidiary, ISS Merger Sub, Inc., with and into Seller (the “ISS Merger”
and collectively with the RMG Merger, the “Merger”), with Seller
continuing as the surviving corporation. Immediately following the Merger, each
of RiskMetrics and Seller will be a direct wholly owned subsidiary of Borrower.
In connection with the Merger, there will be a rollover by certain of the
existing common equity holders of Seller into Holdings (the “Rollover Equity
Contribution”).

 

The Borrower
has requested that (a) the Lenders provide a term B loan facility and a
revolving credit facility to pay to the Seller’s stockholders and optionholders
the cash consideration for their shares and vested options of Seller in the ISS
Merger, to pay transaction fees and expenses and to refinance certain
Indebtedness of Seller and (b) from time to time, the Lenders lend to the
Borrower and the L/C Issuer (as hereinafter defined) issue Letters of Credit
(as hereinafter defined) for the account of the Borrower to provide a revolving
credit facility for the Borrower and its Subsidiaries (as hereinafter defined),
and the Lenders have indicated their willingness to lend and the L/C Issuer has
indicated its willingness to issue Letters of Credit, in each case, on the
terms and subject to the conditions set forth herein.

 

In
consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:

 

 

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

 

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

 

“Administrative
Agent” means Bank of America in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent.

 

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 11.02, or such other
address or account as the Administrative Agent may from time to time notify to
the Borrower and the Lenders.

 

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

 

“Affiliate”
means, with respect to any Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under
common Control
with the Person specified.

 

“Aggregate Commitments”
means the Commitments of all the Lenders.

 

“Agreement”
means this First Lien Credit Agreement.

 

“Applicable
Commitment Fee Percentage” means, at any time, in respect of the Revolving
Credit Facility, (a) from the Closing Date to the date on which the
Administrative Agent receives a Compliance Certificate pursuant to Section
6.02(b) for the fiscal quarter ending June 30, 2007, 0.50% per annum and
(b) thereafter, the applicable percentage per annum set forth below determined by reference to
the Consolidated Leverage Ratio and effective as of the first Business Day
immediately following the earlier of (A) delivery of a certificate signed by a
Responsible Officer calculating the Consolidated Leverage Ratio and (B) the
date a Compliance Certificate is delivered pursuant to Section 6.02(b):

 

Applicable Commitment Fee Percentage

 

	
  Pricing

  	
   

  	
  Consolidated

  	
   

  	
  Commitment

  	
   

  
	
  Level

  	
   

  	
  Leverage Ratio

  	
   

  	
  Fee

  	
   

  
	
  1

  	
   

  	
  <4.0:1

  	
   

  	
  0.375

  	
  %

  
	
  2

  	
   

  	
  >4.0:1

  	
   

  	
  0.50

  	
  %

  

 

Any increase
or decrease in the Applicable Commitment Fee Percentage resulting from a change
in the Consolidated Leverage Ratio shall become effective as of the first
Business Day immediately following the date a Compliance Certificate is
delivered pursuant to Section 6.02(b); provided,  however,
if any adjustment becomes effective pursuant to the preceding clause (A), the
Consolidated Leverage Ratio shall be recalculated upon the first delivery of
financial statements pursuant to Sections 6.01 (a) or 6.01 (b)
after the delivery of the officer’s certificate referred to in such clause and
if such recalculation indicates that the

 

2

 

Consolidated
Leverage Ratio on the last day of such fiscal quarter was different from that
reported in such officer’s certificate, (I) the “Applicable
Commitment Fee Percentage” shall be readjusted based on the
recalculated Consolidated Leverage Ratio and (II) if the recalculated
Consolidated Leverage Ratio is higher than that reported on the officer’s
certificate and results in a higher Applicable Commitment Fee Percentage, the
Borrower shall immediately pay an amount equal to the additional amount on the
Loans that would have accrued thereto based on such higher Applicable
Commitment Fee Percentage, which amounts shall be paid (y) immediately, to the
extent that any date for payment of the fee to which such amounts related have
occurred and (z) otherwise, on the Interest Payment Date to which such amounts
relate. If a Compliance Certificate is not delivered when due in accordance
with such Section, then Pricing Level 2 shall apply as of the first Business
Day after the date on which such Compliance Certificate was required to have
been delivered.

 

“Applicable
Percentage” means (a) in respect of the Term B Facility, with respect to
any Term B Lender at any time, the percentage (carried out to the ninth decimal
place) of the Term B Facility represented by (i) on or prior to the Closing
Date, such Term B Lender’s Term B Commitment at such time and (ii) thereafter,
the principal amount of such Term B Lender’s Term B Loans at such time and (b)
in respect of the Revolving Credit Facility, with respect to any Revolving
Credit Lender at any time, the percentage (carried out to the ninth decimal
place) of the Revolving Credit Facility represented by such Revolving Credit
Lender’s Revolving Credit Commitment at such time. If the commitment of each
Revolving Credit Lender to make Revolving Credit Loans and the obligation of the
L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section
8.02, or if the Revolving Credit Commitments have expired, then the
Applicable Percentage of each Revolving Credit Lender in respect of the
Revolving Credit Facility shall be determined based on the Applicable
Percentage of such Revolving Credit Lender in respect of such Facility most
recently in effect, giving effect to any subsequent assignments. The initial
Applicable Percentage of each Lender in respect of each Facility is set forth
opposite the name of such Lender on Schedule 2.01 or in the Assignment
and Assumption pursuant to which such Lender becomes a party hereto, as
applicable.

 

“Applicable
Rate” means (a) in respect of the Revolving Credit Facility, (i) from the
Closing Date to the date on which the Administrative Agent receives a
Compliance Certificate pursuant to Section 6.02(b) for the fiscal
quarter ending June 30, 2007, 1.25% per annum for Base Rate Loans and 2.25% per
annum for Eurodollar Rate Loans and (ii) thereafter, the applicable percentage
per annum set forth below determined by reference to the Consolidated Leverage
Ratio and effective as of the first Business Day immediately following the
earlier of (A) delivery of a certificate signed by a Responsible Officer
calculating the Consolidated Leverage Ratio and (B) the date a Compliance
Certificate is delivered pursuant to Section 6.02(b):

 

3

 

Applicable Rate

 

	
   

  	
   

  	
   

  	
   

  	
  Eurodollar

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Rate

  	
   

  	
   

  	
   

  
	
  Pricing

  	
   

  	
  Consolidated

  	
   

  	
  (Letters of

  	
   

  	
  Base

  	
   

  
	
  Level

  	
   

  	
  Leverage Ratio

  	
   

  	
  Credit)

  	
   

  	
  Rate

  	
   

  
	
  1

  	
   

  	
  <3.0:1

  	
   

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  
	
  2

  	
   

  	
  >3.0:1 but <4.0:1

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  
	
  3

  	
   

  	
  >4.0:1

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  

 

and (b) in
respect of the Term B Facility, (i) from the Closing Date to the date on which
the Administrative Agent receives a Compliance Certificate pursuant to Section
6.02(b) for the fiscal quarter ending December 31, 2007, 1.25% per annum
for Base Rate Loans and 2.25% per annum for Eurodollar Rate Loans and (ii)
thereafter, the applicable percentage per annum set forth below determined by
reference to the Consolidated Leverage Ratio and effective as of the first
Business Day immediately following the earlier of (A) delivery of a certificate
signed by a Responsible Officer calculating the Consolidated Leverage Ratio and
(B) the date a Compliance Certificate is delivered pursuant to Section 6.02(b):

 

Applicable Rate

 

	
  Pricing

  	
   

  	
  Consolidated

  	
   

  	
  Eurodollar

  	
   

  	
  Base

  	
   

  
	
  Level

  	
   

  	
  Leverage Ratio

  	
   

  	
  Rate

  	
   

  	
  Rate

  	
   

  
	
  1

  	
   

  	
  <4.0:1

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  
	
  2

  	
   

  	
  >4.0:1

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  

 

Any increase
or decrease in the Applicable Rate resulting from a change in the Consolidated
Leverage Ratio shall become effective as of the first Business Day immediately
following the earlier of (A) delivery of a certificate signed by a Responsible
Officer calculating the Consolidated Leverage Ratio and (B) the date a
Compliance Certificate is delivered pursuant to Section 6.02(b); provided,
however, if any adjustment becomes effective pursuant to the preceding
clause (A), the Consolidated Leverage Ratio shall be recalculated upon the
first delivery of financial statements pursuant to Sections 6.01(a) or 6.01(b)
after the delivery of the officer’s certificate referred to in such clause and
if such recalculation indicates that the Consolidated Leverage Ratio on the last
day of such fiscal quarter was different from that reported in such officer’s
certificate, (I) the “Applicable Rate”
shall be readjusted based on the recalculated Consolidated Leverage Ratio and
(II) if the recalculated Consolidated Leverage Ratio is higher than that
reported on the officer’s certificate and results in a higher Applicable Rate,
the Borrower shall immediately pay an amount equal to the additional interest
on the Loans that would have accrued thereto based on such higher Applicable
Rate, which amounts shall be paid (y) immediately, to the extent that any
Interest Payment Date to which such amounts related have occurred and (z)
otherwise, on the Interest Payment Date to which such amounts relate. If a
Compliance Certificate is not delivered when due in accordance with such
Section, then Pricing Level 3 shall apply in respect of the Revolving Credit
Facility and Pricing Level 2 shall apply in respect of the Term B Facility, in
each case as of the first Business Day after the date on which such Compliance Certificate was required to
have been delivered.

 

4

 

“Applicable
Revolving Credit Percentage” means with respect to any Revolving Credit
Lender at any time, such Revolving Credit Lender’s Applicable Percentage in
respect of the Revolving Credit Facility at such time.

 

“Appropriate
Lender” means, at any time, (a) with respect to the Term B Facility or the Revolving Credit Facility, a Lender
that has a Commitment with respect to such  Facility or holds
a Term B Loan or a Revolving Credit Loan, respectively, at such time, (b) with
respect to the Letter of Credit Sublimit, (i) the L/C Issuer and (ii) if any
Letters of Credit have been issued pursuant to Section 2.03(a), the
Revolving Credit Lenders and (c) with respect to the Swing Line  Sublimit,
(i) the Swing Line Lender and (ii) if any Swing Line Loans are outstanding
pursuant to Section 2.04(a), the Revolving Credit Lenders.

 

“Approved
Fund” means any Fund that is administered or managed by (a) a Lender, (b)
an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages
a Lender.

 

“Arrangers”
has the meaning specified in the introductory paragraph hereto.

 

“Assignee
Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

 

“Assignment
and Assumption” means an assignment and assumption entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is
required by Section 11.06(b)), and accepted by the Administrative Agent,
in substantially the form of  Exhibit E or any other form
approved by the Administrative Agent.

 

“Attributable
Indebtedness” means, on any date, (a) in respect of any Capitalized Lease
of any Person, the capitalized amount thereof that would appear on a balance
sheet of such Person prepared as of such date in accordance with GAAP, (b) in
respect of any Synthetic Lease Obligation, the capitalized amount of the
remaining lease or similar payments under the relevant  lease or
other applicable agreement or instrument that would appear on a balance sheet
of such Person prepared as of such date in accordance with GAAP if such lease
or other agreement or instrument were accounted for as a Capitalized Lease and
(c) all Synthetic Debt of such Person.

 

“Auto-Extension
Letter of Credit” has the meaning specified in Section 2.03(b)(iii).

 

“Auto-Reinstatement
Letter of Credit” has the meaning specified in Section 2.03(b)(iv).

 

“Availability
Period” means, in respect of the Revolving Credit Facility, the period from
and including the Closing Date to the earliest of (i) the Maturity Date for the
Revolving Credit Facility, (ii) the date of termination of the Revolving Credit
Commitments pursuant to Section 2.06, and (iii) the date of termination
of the commitment of each Revolving  Credit Lender to make Revolving
Credit Loans and of the obligation of the L/C Issuer to make L/C Credit
Extensions pursuant to Section 8.02.

 

5

 

“Bank of
America” means Bank of America, N.A. and its successors.

 

“Base Rate”
means for any day a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect
for such day as publicly announced from time to time by Bank of America as its “prime
rate.” The “prime rate” is a rate set by Bank of America based upon various
factors including Bank of America’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some
loans, which may be priced at, above, or below such announced rate. Any change
in such rate announced by Bank of America shall take effect at the opening of
business on the day specified in the public announcement of such change.

 

“Base Rate
Loan” means a Revolving Credit Loan or a Term B Loan that bears interest
based on the Base Rate.

 

“Berman
Family” means (a) Ethan Berman, his spouse, members of his immediate
family, and/or any of the lineal descendants of any thereof and/or (b) any
trust or similar entity all of the beneficiaries of which, or a corporation,
partnership or limited liability company all of the stockholders and other
equity holders, limited and general partners or members of which, are (i)
solely the Persons identified in the foregoing clause (a) and/or (ii) any
entity described in this clause (b) all the beneficiaries of which, or all the
stockholders and other equity holders, limited and general partners of which,
are solely the Persons identified in the foregoing clause (a).

 

“Borrower”
has the meaning specified in the introductory paragraph hereto.

 

“Borrower
Materials” has the meaning specified in Section 6.02.

 

“Borrowing”
means a Revolving Credit Borrowing, a Swing Line Borrowing or a Term B
Borrowing, as the context may require.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent’s Office is located and, if
such day relates to any Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London
interbank eurodollar market.

 

“Capex
Carryover Amount” means, for any fiscal year of Holdings, the excess of (a)
the amount of Capital Expenditures set forth for such fiscal year in the chart
contained in Section 7.12  over (b) the aggregate amount of
Capital Expenditures made by Holdings and its Subsidiaries during such fiscal
year.

 

“Capital
Expenditures” means, with respect to any Person for any period, any
expenditure in respect of the purchase or other acquisition of any fixed or
capital asset (excluding normal replacements and maintenance which are properly
charged to current operations); provided that “Capital Expenditures”
shall not include: (a) any expenditures made with cash that could otherwise be
paid by Holdings in compliance with Section 7.06(g), (b) expenditures
made in connection with the replacement, substitution or restoration of assets
(i)

 

6

 

to the extent
financed from insurance proceeds or (ii) with awards of compensation arising
from the taking by eminent domain or condemnation of the assets being replaced,
(c) the purchase price of equipment that is purchased simultaneously with the
trade in of existing equipment to the extent that the gross amount of such
purchase price is reduced by the credit granted by the seller of such equipment
for the equipment being traded in at such time and (d) any capital expenditures
deemed to be made as part of any acquisition permitted by Section 7.03.

 

“Capitalized
Leases” means all leases that have been or should be, in accordance with
GAAP, recorded as capitalized leases.

 

“Cash
Collateralize” has the meaning specified in Section 2.03(g).

 

“Cash
Equivalents” means any of the following types of Investments: (a)
obligations issued or directly and fully guaranteed or insured by the United
States of America or any agency or instrumentality thereof having maturities of
not more than 360 days from the date of acquisition thereof; provided
that the full faith and credit of the United States of America is pledged in
support thereof; (b) deposits, time deposits, eurodollar time deposits or
overnight bank deposits with, or insured certificates of deposit or bankers’
acceptances of, any commercial bank that (i) (A) is a Lender or an Affiliate of
a Lender or (B) is organized under the laws of the United States of America,
any state thereof or the District of Columbia or is the principal banking
subsidiary of a bank holding company organized under the laws of the United
States of America, any state thereof or the District of Columbia, and is a
member of the Federal Reserve System, or under the laws of a foreign country
(or political subdivision thereof) in which a Subsidiary making such deposits
operates its business and (ii)(A) has combined capital and surplus of at least
$250,000,000, (B) whose senior unsecured debt is rated at least A-1 by S&P
and at least P-1 by Moody’s; (C) has a short-term commercial paper rating (at
the time of acquisition of such security) by S&P of at least A-1 or the
equivalent thereof or by Moody’s of at least Prime-1 or the equivalent thereof;
or (D) has a long-term unsecured debt rating (at the time of acquisition of
such security) of at least AA or the equivalent thereof by S&P or at least
Aa2 or the equivalent thereof by Moody’s (each commercial bank referred to in
this clause (b), being an “Approved Bank”); (c) deposits, time deposits;
eurodollar time deposits or overnight bank deposits with, or certificates of
deposit or bankers’ acceptances of any commercial bank that is organized under
the laws of a foreign country but is not an Approved Bank with a long-term unsecured
debt rating (at the time of acquisition of such security) of at least AA or the
equivalent thereof by S&P or at least Aa2 or the equivalent thereof by
Moody’s; (d) commercial paper and variable or fixed rate notes issued by any
Approved Bank or by the parent company of any Approved Bank; (e) commercial
paper and variable rate notes issued by, or guaranteed by, any industrial or
financial company with a short-term commercial paper rating (at the time of
acquisition of such security) of at least A-1 or the equivalent thereof by
S&P or at least Prime-1 or the equivalent thereof by Moody’s, or issued by,
or guaranteed by any industrial company with a long-term unsecured debt rating
(at the time of acquisition of such security) of at least AA or the equivalent
thereof by S&P or at least Aa or the equivalent thereof by Moody’s and in
each case maturing within one year after the date of acquisition; (f)
repurchase obligations of any Approved Bank, having a term of not more than 30
days, with respect to securities issued or fully guaranteed or insured by the
United States government; (g) repurchase agreements with any Lender or any
primary dealer maturing within one year from the date of acquisition that are
fully

 

7

 

collateralized
by investment instruments that would otherwise be Cash Equivalents; provided
that the terms of such repurchase agreements comply with the guidelines set
forth in the “Federal Financial Institutions Examination
Council Supervisory Policy - Repurchase Agreements of
Depository Institutions With Securities Dealers and Others, as adopted by the
Comptroller of the Currency on October 31, 1985”; (h) investments,
classified in accordance with GAAP as current assets of Holdings or any of its
Subsidiaries, in money market investment programs registered under the
Investment Company Act of 1940, which are administered by financial
institutions that have the highest rating obtainable from either Moody’s or
S&P, and the portfolios of which are limited solely to Investments of the
character, quality and maturity described in clauses (a) through (g) of this
definition; (i) auction rate securities including tax-exempt, DRD and fully-taxable issues rated AA2/AA
or better and with a maximum term between auctions of 180 days; and (j)
investments in municipal money market funds, or direct investments in municipal
money market securities including, but not limited to, Variable Rate Demand
Obligations (VRDOs), synthetic floaters (P-Floats), R-Floats, municipal commercial
paper, municipal notes and bonds with maturities or resets of one year or less
from settlement date and a minimum rating of at least A-1 or VMIG-1 or
underlying rating of Aa2 or AA or better.

 

“Cash
Management Agreement” means any agreement to provide cash management
services, including treasury, depository, overdraft, credit or debit card,
electronic funds transfer and other cash management arrangements.

 

“Cash
Management Bank” means any Person that, at the time it enters into a Cash
Management Agreement, is a Lender or an Affiliate of a Lender, in its capacity
as a party to such Cash
Management Agreement.

 

“CFC” means a Person that is a controlled
foreign corporation under Section 957 of
the Code.

 

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

 

“Change of
Control” means an event or series of events by which:

 

(a)           at any time prior to
the creation of a Public Market, the Permitted Holders, in the aggregate, shall
cease to own and control legally and beneficially (free and clear of all
Liens), either directly or indirectly, equity securities in Holdings
representing more than 50% of the combined economic and voting power of all of
the equity securities entitled to vote for members of the board of directors or
equivalent governing body of Holdings on a fully-diluted basis but excluding
unvested options and stock appreciation rights (and taking into account all
such securities that the Permitted Holders have the right to acquire pursuant
to any option right (as defined in clause (b) below)); or

 

8

 

(b)           at any time after
the creation of a Public Market, any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
excluding any employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan) other than the Permitted Holders becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act
of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to
acquire, whether such right is exercisable immediately or only after the
passage of time (such right, an “option right”)), directly or
indirectly, of more than 35% of the equity securities of Holdings entitled to
vote for members of the board of directors or equivalent governing body of
Holdings on a fully-diluted basis (and taking into account all such securities
that such “person” or “group” has the right to acquire pursuant to any option
right); or

 

(c)           Holdings shall cease, directly
or indirectly, to own and control legally and beneficially all of the Equity
Interests in the Borrower.

 

“Closing
Date” means January 11, 2007.

 

“Code”
means the Internal Revenue Code of 1986.

 

“Collateral”
means all of the “Collateral” or “Pledged Collateral” referred to
in the Collateral Documents and all of the other property that is or is
intended under the terms of the Collateral Documents to be subject to Liens in
favor of the Administrative Agent for the benefit of the Secured Parties, other
than Excluded Property.

 

“Collateral
Documents” means, collectively, the Security Agreement, the Intellectual
Property Security Agreement, each of the mortgages, collateral assignments,
Joinder Agreements, intellectual property security agreement supplements,
security agreements, pledge agreements or other similar agreements delivered to
the Administrative Agent pursuant to Section 6.12, and each of the other
agreements, instruments or documents that creates or purports to create a Lien
in favor of the Administrative Agent for the benefit of the Secured Parties.

 

“Commitment”
means a Term B Commitment or a Revolving Credit Commitment, as the context may require.

 

“Committed
Loan Notice” means a notice of(a) a Term B Borrowing, (b) a Revolving Credit Borrowing, (c) a conversion
of Loans from one Type to the other, or .(d) a continuation of
Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in
writing, shall be substantially in the form of Exhibit A.

 

“Compliance
Certificate” means a certificate substantially in the form of Exhibit D.

 

“Consolidated
Adjusted EBITDA” means, at any date of determination, an amount equal to
Consolidated Net Income of Holdings and its Subsidiaries on a consolidated basis
for the most recently completed Measurement Period plus (a) the
following to the extent

 

9

 

deducted in
calculating such Consolidated Net Income: (i) Consolidated Interest Charges,
(ii) the provision for Federal, state, local and foreign income taxes payable,
(iii) depreciation and amortization expense, (iv) impairment of goodwill and
other non-cash charges (including write downs and impairment of property,
plant, equipment and intangibles and other long lived assets) or expenses which
do not represent a cash item in such period or in any future period (excluding
any such non-cash charge or expense to the extent that it represents
amortization of a
prepaid cash expense), (v) unrealized losses (or minus unrealized gains)
from hedges and other financial derivatives, ordinary course foreign currency
exposure, mark-to-market activity and lower of cost or market adjustments, (vi)
non-cash compensation expense, or other non-cash expenses or charges which do
not represent a cash item in such period or in any future period, arising from
the granting of stock options, the granting of stock appreciation rights and
similar arrangements (including any strike price reductions for dividends paid,
repricing, amendment, modification, substitution or change of any stock option,
stock appreciation rights or similar arrangements), (vii) any financing or
financial advisory fees, accounting fees, legal fees, transfer or mortgage
recording taxes and other out-of-pocket expenses of Holdings or any of its
Subsidiaries (including expenses of third parties paid or reimbursed by
Holdings or any of its Subsidiaries) incurred in connection with the Merger,
(viii) unusual and non-recurring cash charges, (ix) any financing or financial
advisory fees, accounting fees, legal fees, transfer or other mortgage
recording taxes and related out-of-pocket expenses of Holdings and its
Subsidiaries (including expenses of
third parties paid or reimbursed by Holdings or any of its Subsidiaries), incurred
as a result of any
acquisition permitted under the terms of this Agreement or the issuance of any
debt or equity securities (including any Public Offering), any refinancing
transaction or any amendment or other modification of any debt instruments to
the extent not prohibited by the terms of the Loan Documents, (x) any other
non-recurring expenses reducing such Consolidated Net Income which do not
represent a cash item in such period or any future period (in each case of or
by Holdings and its Subsidiaries for such Measurement Period), (xi) that
portion of any Deferred Revenue Adjustment that would, in the absence of
purchase accounting adjustments relating to the Merger or any Permitted
Acquisition, have been recorded as revenue in such Measurement Period and (xii) with respect to any Permitted Acquisition,
expenses associated with the termination of any contracts with third
parties or the severance of any senior management of a Person acquired in such
Permitted Acquisition minus (b) the following to the extent included in
calculating such Consolidated Net Income: (i) Federal, state, local and foreign
income tax credits, (ii) all non-cash items increasing Consolidated Net Income
other than ordinary course accruals in accordance with GAAP and (iii) that portion
of any Deferred Cost Adjustment that
would, in the absence of purchase accounting adjustments relating to the Merger
or any Permitted Acquisition, have been recorded as an expense in such
Measurement Period (in each case of or by Holdings and its Subsidiaries for
such Measurement Period); provided that (a) Consolidated Adjusted EBITDA
for the fiscal quarter ended (i) June 30, 2006 shall be $12,757,161 and (ii) September 30, 2006 shall be $15,375,989 and (b)
Consolidated Adjusted EBITDA for the fiscal quarters ended December 31, 2006
and March 31, 2007 shall each be calculated on a pro forma basis as if
the Merger had occurred on October 1, 2006 with such pro forma adjustments as
are consistent with those implied by the calculations in the preceding clause (a) and otherwise are reasonably
acceptable to the Administrative Agent.

 

Consolidated
Adjusted EBITDA shall be calculated on a Pro Forma Basis to give effect to the
Merger, any Permitted Acquisitions and Disposition (other than any dispositions
in

 

10

 

the ordinary
course of business) consummated at any time on or after the first day of any
Measurement Period of Holdings as if the Merger and each such Permitted
Acquisition had been effected on the first day of such Measurement Period and
as if each such Disposition had been consummated on the day prior to the first
day of such Measurement Period, except that such pro forma
calculations may include operating expense and cost reductions for such period
resulting from such transaction which is being given pro forma
effect that (i) have been realized or (ii)(a) for which the steps necessary for
the realization have been taken (or are taken concurrently with such
transaction) or (b) with respect to any transactions for which the steps
necessary for realization are reasonably expected to be taken within the six
month period following such transaction, in each case, including but not
limited to (1) reductions in personnel expenses, (2) reductions of costs
related to administrative functions, (3) reductions of costs related to leased
or owned properties and (4) reductions from the consolidation of operations and
streamlining of corporate overhead; provided that any such operating
expense and cost reductions for such period included in such pro forma calculations shall be certified to the
Administrative Agent by the chief financial officer of the Borrower.

 

“Consolidated
Funded Indebtedness” means, as of any date of determination, for Holdings
and its Subsidiaries on a consolidated basis, the sum of (a) the outstanding
principal amount of all obligations, whether current or long-term, for borrowed
money (including Obligations hereunder) and all obligations evidenced by bonds,
debentures, notes, loan agreements or other similar instruments, (b) all
purchase money Indebtedness, (c) all direct obligations arising under letters
of credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments, (d) all obligations in
respect of the deferred purchase price of property or services (other than
trade accounts payable in the ordinary course of business), (e) all
Attributable Indebtedness, (f) without duplication, all Guarantees with respect
to outstanding Indebtedness of the types specified in clauses (a) through (e)
above of Persons other than the Borrower or any Subsidiary, and (g) all
Indebtedness of the types referred to in clauses (a) through (f) above of any
partnership or joint venture (other than a  joint venture that is itself
a corporation or limited liability company) in which the Borrower or a
Subsidiary is a general partner or joint venturer, unless such Indebtedness is
expressly made non-recourse to the Borrower or such Subsidiary.

 

“Consolidated
Interest Charges” means, for any Measurement Period, the sum of (a) all
interest, premium payments, debt discount, fees, charges and related expenses
in connection with borrowed money (including capitalized interest) or in
connection with the deferred purchase price of assets, in each case to the
extent treated as interest in accordance with GAAP and (b) the portion of rent
expense under Capitalized Leases that is treated as interest in accordance with
GAAP, in each case, of or by Holdings and its Subsidiaries on a consolidated basis
for the most recently completed Measurement Period.

 

“Consolidated
Leverage Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Funded Indebtedness less Excess Cash (as defined below) as
of such date to (b) Consolidated Adjusted EBITDA of Holdings and its
Subsidiaries on a consolidated basis for the most recently completed
Measurement Period. “Excess Cash” means, as of any date of
determination, the amount of cash and Cash Equivalents of Holdings and its
Subsidiaries in excess
of $3,000,000.

 

11

 

“Consolidated
Net Income” means, at any date of determination, the net income (or loss)
of Holdings and its Subsidiaries on a consolidated basis for the most recently
completed Measurement Period; provided that Consolidated Net Income
shall exclude (a) extraordinary gains and extraordinary losses for such
Measurement Period, (b) the net income of any Subsidiary during such
Measurement Period to the extent that the declaration or payment of dividends or similar distributions by such
Subsidiary of such income is not permitted by operation of the terms of
its Organization Documents or any agreement, instrument or Law applicable to
such Subsidiary during such Measurement Period, except that Holdings’ equity in
any net loss of any such Subsidiary for such Measurement Period shall be
included in determining Consolidated Net Income, and (c) any income (or loss)
for such Period of any Person if such Person is not a Subsidiary, except that
Holdings’ equity in the net income of any such Person for such Measurement
Period shall be included in Consolidated Net Income up to the aggregate amount
of cash actually distributed by such Person during such Period to Holdings or a
Subsidiary as a dividend or other distribution (and in the case of a dividend
or other distribution to a Subsidiary, such Subsidiary is not precluded from
further distributing such amount to Holdings as described in clause (b) of this
proviso) and (d) any non-cash after-tax gains or losses attributable to any
Disposition or returned surplus assets of any Plan.

 

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

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting
power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

 

“Credit
Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit Extension.

 

“Debtor
Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

 

“Default”
means any event or condition that constitutes an Event of Default or that, with
the giving of any notice, the passage of time, or both, would be an Event of
Default.

 

“Default
Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable
to Base Rate Loans under the applicable Facility plus (iii) 2% per annum; provided, however,
that with respect to a Eurodollar Rate Loan, the Default Rate shall be an
interest rate equal to the interest rate (including any Applicable Rate)
otherwise applicable to such Loan plus 2% per annum and (b) when used
with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus
2% per annum.

 

12

 

“Defaulting
Lender” means any Lender that (a) has failed to fund any portion of the
Term B Loans, Revolving Credit Loans, participations in L/C Obligations or
participations in Swing Line Loans required to be funded by it hereunder within
one Business Day of the date required to be funded by it hereunder, (b) has
otherwise failed to pay over to the Administrative Agent or any other Lender
any other amount required to be paid by it hereunder within one Business Day of
the date when due, unless the subject of a good faith dispute, or (c) has been
deemed insolvent or become the subject of a bankruptcy or insolvency
proceeding.

 

“Deferred
Cost Adjustment” means, with respect to the Merger or any Permitted
Acquisition, the reduction in the deferred costs reflected on the most recent
balance sheet of, with respect to the Merger, Seller or, with respect to any
Permitted Acquisition the Person acquired resulting from fair valuing such
deferred costs under the purchase method of accounting for the Merger for such
Permitted Acquisition

 

“Deferred
Revenue Adjustment” means, with respect to the Merger or any Permitted
Acquisition, the reduction in the deferred revenue reflected on the most recent
balance sheet of, with respect to the Merger, Seller or, with respect to any
Permitted Acquisition, the Person acquired resulting from fair valuing such
deferred revenue under the purchase method of accounting for the Merger or such Permitted
Acquisition.

 

“Disposition”
or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) of any property by
any Person (or the granting of any option or other right to do any of the
foregoing), including any sale, assignment, transfer or other disposal, with or
without recourse, of any notes or accounts receivable or any rights and claims
associated therewith.

 

“Disqualified
Capital Stock” means any Equity Interests of a Person or a Subsidiary
thereof issued after the date hereof which, by its terms (or by the terms of
any security into
which it is convertible or for which it is exchangeable at the option of the
holder), or upon the happening of any event other than a change of
control, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or is redeemable at the option of the holder thereof,
in whole or in part, or would require the mandatory payment of cash dividends on
or prior to the Maturity Date (as defined in the Second Lien Credit Agreement),
for cash or securities constituting Indebtedness. Without limitation of the
foregoing, Disqualified Capital Stock shall be deemed to include any preferred
stock of a Person or a Subsidiary of such Person, with respect to which, under
the terms of such preferred stock, by agreement or otherwise, such Person or
Subsidiary is obligated to pay current dividends or distributions in cash
during the period prior to the Maturity Date (as defined in the Second Lien
Credit Agreement); provided, however, that preferred stock of a
Person that is issued with the benefit of provisions requiring a change of
control offer to be made for such preferred stock in the event of a change of
control of such Person will not be deemed to be Disqualified Capital Stock
solely by virtue of such provisions.

 

“Dollar” and “$” mean lawful money of the United
States.

 

13

 

“Eligible
Assignee” means any Person that meets the requirements to be an assignee
under Section 11.06(b)(iii), (v) and (vi) (subject to such
consents, if any, as may be required under Section 11.06(b)(iii)).

 

“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 those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of  Holdings, any other Loan Party or any of their
respective Subsidiaries directly or indirectly resulting from or based upon (a)
violation of any Environmental Law, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to any
Hazardous Materials, (d) the release or threatened release of any Hazardous
Materials into the environment or (e) any contract pursuant to which liability
is assumed or imposed with respect to any of the foregoing.

 

“Environmental
Permit” means any permit, approval or license under any Environmental Law.

 

“Equity
Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the
warrants, options or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership or profit interests
in) such Person, all of the securities convertible into or exchangeable for
shares of capital stock of (or other ownership or profit interests in) such
Person or warrants, rights or options for the purchase or acquisition from such
Person of such shares (or such other interests), and all of the other ownership
or profit interests in such Person (including partnership, member or trust
interests therein), whether voting or nonvoting, and whether or not such
shares, warrants, options, rights or other interests are outstanding on any
date of determination.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974.

 

“ERISA
Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of
the Code (and Sections 414(m) and (o) of the Code for purposes of provisions
relating to Section 412 of the Code).

 

“ERISA
Event” means (a) a Reportable Event with respect to a Pension Plan; (b)
with respect to a Pension Plan, the failure to satisfy the minimum funding
standard of Section 412 of the Code or the failure to make by its due date a
required contribution under Section 412(m) of the Code; (c) a withdrawal by the
Borrower or any ERISA Affiliate from a Pension Plan subject to Section
4063 of ERISA during a plan year in which it was a substantial employer (as
defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is
treated as such a

 

14

 

withdrawal
under Section 4062(e) of ERISA; (d) a complete or partial withdrawal by the
Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that
a Multiemployer Plan is in reorganization; (e) the filing of a notice of intent
to terminate a Pension Plan, the treatment of a Plan amendment as a termination
under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (f) an event or condition which
constitutes grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan or Multiemployer Plan;
(g) the making of any amendment to any Pension Plan which would result in the
imposition of a lien or the posting of a bond or other security; (h) the
occurrence of a non-exempt prohibited transaction (within the meaning of
Section 4975 of the Code or Section 406 of ERISA) which would result in
liability to the Borrower; or (i) the imposition of any liability under Title
IV of ERISA, other than for PBGC premiums due but not delinquent under Section
4007 of ERISA, upon the Borrower or any ERISA Affiliate.

 

“Eurodollar
Rate” means, for any Interest Period with respect to a Eurodollar Rate
Loan, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA
LIBOR”), as published by Reuters (or other commercially available source
providing quotations of
BBA LIBOR as designated by the Administrative Agent from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest
Period. If such rate is not available at such time for any reason, then the “Eurodollar
Rate” for such Interest Period shall be the rate per annum determined by the
Administrative Agent to be the rate at which deposits in Dollars for delivery
on the first day of such Interest Period in same day funds in the approximate
amount of the Eurodollar Rate Loan being made, continued or converted by Bank
of America and with a term equivalent to such Interest Period would be offered
by Bank of America’s London Branch to major banks in the London interbank
eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement
of such Interest Period.

 

“Eurodollar
Rate Loan” means a Revolving Credit Loan or a Term B Loan that bears
interest at a rate based on the Eurodollar Rate.

 

“Event of
Default” has the meaning specified in Section 8.01.

 

“Excess
Cash Flow” means, for any fiscal year of Holdings, the excess (if any) of
(a) the sum of (i) Consolidated Adjusted EBITDA for such fiscal year and (ii)
the Capex Carryover Amount for a prior fiscal year permitted to be used for
Capital Expenditures during such fiscal year to the extent not so used during
such fiscal year over (b) the sum (for such fiscal year) of (i)
Consolidated Interest Charges actually paid in cash by Holdings and its
Subsidiaries, (ii) an amount equal to the aggregate amount of all regularly
scheduled principal payments or redemptions of outstanding Consolidated Funded
Indebtedness made during such period by Holdings and its Subsidiaries and the
aggregate principal amount of all prepayments made in respect of such
Consolidated Funded Indebtedness (other than any such prepayment in respect of
the Term B Loans pursuant to Section 2.05(a)(i) during such period),
(iii) all income taxes actually paid in
cash by Holdings and its Subsidiaries, (iv) Capital Expenditures (except to the
extent financed by incurring Consolidated Funded Indebtedness or issuing
Equity Interests)

 

15

 

actually made
by Holdings and its Subsidiaries in such fiscal year, (v) the Capex Carryover
Amount for such fiscal year and (vi) cash expenses, costs, fees or charges to
the extent included in Consolidated Adjusted EBITDA for such fiscal year
pursuant to clauses (a)(vii), (viii), (ix) or (xii) of the definition of “Consolidated
Adjusted EBITDA” (including giving effect to any cash pro forma adjustments
from the Merger, any Permitted Acquisition and any Disposition).

 

“Excluded
Property” means: (a) any lease, license, permit, contract, property right
or agreement to which any Loan Party is a party or any of such Loan Party’s
rights or interests thereunder if and only for so long as the grant of a Lien
thereon shall (i) give any other Person party to such lease, license, permit,
contract, property rights or agreement the right to terminate its obligations
thereunder, (ii) constitute or result in the abandonment, invalidation or
unenforceability of any right, title or interest of any Loan Party therein or
(iii) constitute or result in a breach or termination pursuant to the terms of,
or a default under, any such lease, license, permit, contract, property rights
or agreement (other than to the extent that any such term would be rendered
ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or
any successor provision or provisions)); provided that such lease,
license, permit, contract, property right or agreement shall be Excluded
Property only to the extent and for so long as the consequences specified above
shall exist and shall cease to be Excluded Property and shall become subject to
the Liens granted under the Collateral Documents, immediately and
automatically, at such time as such consequences shall no longer exist; (b) any
equipment (as such term is defined in the UCC) owned by any Loan Party that is
subject to a purchase money Lien or a Capitalized Lease permitted pursuant to this Agreement if the
contract or other agreement in which such Lien is granted (or in the
documentation providing for such Capitalized Lease) prohibits or requires the
consent of any Person other than any Loan Party as a condition to the creation
of any other Lien on such equipment, but only, in each case, to the extent, and
for so long as, the Indebtedness secured by the applicable Lien or the
Capitalized Lease has not been repaid in full or the applicable prohibition (or
consent requirement) has not otherwise been removed or terminated; (c) any
Equity Interests in Holdings; (d) any Equity Interests in or property of any
Excluded Subsidiary; (e) any leasehold property or owned real property with a
fair market value of less than $4,000,000, (f) after the date hereof, any
property acquired by any Loan Party if and to the extent that the
Administrative Agent shall have reasonably determined that the costs
(including, without limitation, recording taxes and filing fees) of creating
and perfecting a Lien on such property interests are excessive in relation to
the value of the security afforded thereby; (g) motor vehicles (as such term is
defined in the UCC) and (h) cash, Cash Equivalents and all deposit and
securities accounts (except to the extent that the foregoing are or contain
proceeds of any other Collateral).

 

“Excluded
Subsidiary” means any (i) Unrestricted Subsidiary, (ii) Subsidiary that is
owned directly or indirectly by a CFC or (iii) Subsidiary formed or acquired
after the Closing Date that has (a) less than $50,000 of assets and (b)
revenues for its most recent fiscal year of $50,000 or less.

 

“Excluded
Taxes” means, with respect to the Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes),

 

16

 

by the jurisdiction
(or any political subdivision thereof) under the laws of which such recipient
is organized or in which its principal office is located or in which its
applicable Lending Office is located (in the case of any Lender) or in which it
is engaged in business (other than business that the Administrative Agent, any
Lender, the L/C Issuer or any other recipient of any payment to be made by or
on account of any obligation of the Borrower hereunder is engaged in solely by
reason of the transactions contemplated by this Agreement), (b) any branch
profits taxes imposed by the United States or any similar tax imposed by any
other jurisdiction in which the Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 11.13), any United States federal withholding tax that is
imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party hereto (or designates a new Lending Office) or is
attributable to such Foreign Lender’s failure or inability (other than as a
result of a Change in Law) to comply with Section 3.01(e), except to the
extent that such Foreign Lender (or its assignor, if any) was entitled, at the
time of designation of a new Lending Office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax
pursuant to Section 3.01(a).

 

“Extraordinary
Receipt” means any cash received by or paid to or for the account of any
Person in respect of (a) proceeds of insurance (other than proceeds of business
interruption insurance to the extent such proceeds constitute compensation for
lost earnings), or (b)
condemnation awards (and payments in lieu thereof).

 

“Facility”
means the Term B Facility or the Revolving Credit Facility, as the context may require.

 

“Federal
Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of
the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next
succeeding such day; provided that (a) if such day is not a Business
Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next
succeeding Business Day, and (b) if no such rate is so published on such next
succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by the Administrative Agent.

 

“Fee Letter”
means the letter agreement, dated October 30, 2006, among RiskMetrics, the
Administrative Agent and Banc of America Securities LLC.

 

“Foreign
Government Scheme or Arrangement” has the meaning specified in Section 5.12(d).

 

“Foreign
Lender” means any Lender that is not a “United States Person” within the meaning of Section 7701(a)(30) of the
Code.

 

“Foreign
Plan” has the meaning specified in Section 5.12(d).

 

17

 

“FRB”
means the Board of Governors of the Federal Reserve System of the United
States.

 

“Fund”
means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business.

 

“GAAP”
means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or such other
principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of
the date of determination, consistently applied.

 

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

 

“Guarantee”
means, as to any Person, any (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation payable or performable by another Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any
obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services
for the purpose of assuring the obligee in respect of such Indebtedness or
other obligation of the payment or performance of such Indebtedness or other
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation, or (iv) entered into for the purpose of
assuring in any other manner the obligee in respect of such Indebtedness or
other obligation of the payment or performance thereof or to protect such obligee
against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any
other Person, whether or not such Indebtedness or other obligation is assumed
by such Person (or any right, contingent or otherwise, of any holder of such
Indebtedness to obtain any such Lien). The amount of any Guarantee shall be
deemed to be an amount equal to the stated or determinable amount of the
related primary obligation, or portion thereof, in respect of which such
Guarantee is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof as determined by the guaranteeing
Person in good faith. The term “Guarantee” as a verb has a corresponding
meaning.

 

“Guarantors”
means, collectively, Holdings, the direct and indirect Subsidiaries of Holdings
listed on Schedule 6.12 and each other Subsidiary of Holdings that shall
be required to execute and deliver a guaranty or guaranty supplement pursuant
to Section 6.12.

 

18

 

“Guaranty”
means, collectively, the Guaranty made by Holdings under Article X iri
favor of the Secured Parties and the Guaranty made by the other Guarantors in
favor of the Secured Parties, substantially in the form of Exhibit F,
together with each other guaranty and guaranty supplement delivered pursuant to
Section 6.12.

 

“Hazardous
Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum
or petroleum distillates, asbestos or asbestos-containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes, in each
case, where regulated pursuant to any applicable Environmental Law.

 

“Hedge Bank”
means any Person that, at the time it enters into a Secured Hedge Agreement, is
a Lender or an Affiliate of a Lender, in its capacity as a party to such
Secured Hedge
Agreement.

 

“Holdings”
has the meaning specified in the introductory paragraph hereto.

 

“Increase
Effective Date” has the meaning specified in Section 2.14(a).

 

“Increase
Joinder” has the meaning specified in Section 2.14(c).

 

“Incremental
Term B Commitment” has the meeting specified in Section 2.14(a).

 

“Incremental
Term B Loans” has the meaning specified in Section 2.14(c).

 

“Incremental
Term B Loan Maturity Date” has the meaning specified in Section 2.14(c).

 

“Indebtedness”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

 

(a)           all obligations of
such Person for borrowed money and all obligations of such Person evidenced by
bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)           the maximum amount of all
direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties,
surety bonds and similar instruments;

 

(c)           net obligations of
such Person under any Swap Contract;

 

(d)           all obligations of
such Person to pay the deferred purchase price of property or services;

 

(e)           indebtedness (excluding
prepaid interest thereon) secured by a Lien on property owned or being
purchased by such Person (including indebtedness arising under

 

19

 

conditional
sales or other title retention agreements), whether or not such indebtedness
shall have been assumed by such Person or is limited in recourse;

 

(f)            all Attributable
Indebtedness in respect of Capitalized Leases and Synthetic Lease Obligations
of such Person and all Synthetic Debt of such Person;

 

(g)           all obligations of such Person
to purchase, redeem, retire, defease or otherwise make any payment in respect
of any Equity Interest in such Person or any other Person or any warrant, right
or option to acquire such Equity Interest, valued, in the case of a redeemable
preferred interest, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends; and

 

(h)           all Guarantees of
such Person in respect of any of the foregoing;

 

provided,
however, that “Indebtedness” shall not include (i) any obligations under
any operating leases, (ii) trade accounts payable, trade credit or accrued
expenses arising in the ordinary course of business and trade letters of credit
issued in support of trade accounts payable and trade credit arising in the
ordinary course of business, (iii) any obligation to reimburse issuers of
surety bonds issued in the ordinary course of business, or (iv) amounts owing
in respect of existing preferred stock and other preferred stock (other than
Disqualified Stock issued after the Closing Date that would be treated as
Indebtedness under GAAP as in effect at such time).

 

For all
purposes hereof, the Indebtedness of any Person shall include the Indebtedness
of any partnership or joint venture (other than a joint venture that is itself
a corporation or limited liability company) in which such Person is a general
partner or a joint venturer, unless such Indebtedness is expressly made
non-recourse to such Person. The amount of any net obligation under any Swap
Contract on any date shall be deemed to be the Swap Termination Value thereof
as of such date.

 

“Indebtedness
to be Repaid” means the obligations set forth on Schedule 1.01(a).

 

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

 

“Indemnitees”
has the meaning specified in Section 11.04(b).

 

“Information”
has the meaning specified in Section 11.07.

 

“Intellectual
Property Security Agreement” has the meaning specified in Section
4.01(a)(iv).

 

“Intercompany
Note” has the meaning specified the Security Agreement.

 

“Intercreditor
Agreement” shall mean that certain Intercreditor Agreement dated as of the
Closing Date among the Administrative Agent and Bank of America, N.A. as the
administrative agent under the Second Lien Credit Agreement, and acknowledged
by the Borrower, substantially in the form of Exhibit J.

 

20

“Interest
Payment Date” means, (a) as to any Eurodollar Rate Loan, the last day of each Interest Period applicable to such
Loan and the Maturity Date of the Facility under which such Loan was
made; provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan or Swing Line Loan, the last
Business Day of each March, June, September and December and the Maturity Date
of the Facility under which such Loan was made (with Swing Line Loans being
deemed made under the Revolving Credit Facility for purposes of this
definition).

 

“Interest
Period” means, as to each Eurodollar Rate Loan, the period commencing on
the date such Eurodollar Rate Loan is disbursed or converted to or continued as
a Eurodollar Rate
Loan and ending on the date one, two, three or six months thereafter,. as
selected by the Borrower in its Committed Loan Notice or such other
period that is twelve months or less requested by the Borrower, if consented to
by all Lenders; provided that:

 

(a)           any
Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day
falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

 

(b)           any Interest Period
that begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of
such Interest Period) shall end on the last Business Day of the calendar month
at the end of such Interest Period; and

 

(c)           no
Interest Period shall extend beyond the Maturity Date of the Facility under
which such Loan was made.

 

“Investment”
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
Equity Interests of another Person, (b) a loan, advance or capital contribution
to, Guarantee or assumption of debt of, or purchase or other acquisition of any
other debt or interest in, another Person, or (c) the purchase or other acquisition (in one transaction or
a series of transactions) of assets of another Person that constitute a
business unit or all or a substantial part of the business of, such Person. For
purposes of covenant compliance, the amount of any Investment shall be the
amount actually invested (net of any return of capital in respect thereof),
without adjustment for subsequent increases or decreases in the value of such
Investment. .               .

 

“IRS”
means the United States Internal Revenue Service.

 

 “ISP” means, with respect to any Letter
of Credit, the “International Standby  Practices 1998” published by
the Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance).

 

“ISS” has the meaning
specified in preliminary statements hereto.

 

21

 

“ISS
Audited Financial Statements” means the audited consolidated balance sheet
of Seller and its Subsidiaries for the fiscal year ended December 31, 2005, and
the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year of Seller and its Subsidiaries,
including the notes thereto.

 

“ISS Material Adverse
Effect” means “Material Adverse Effect”
as defined in the Merger Agreement.

 

“ISS Merger” has the
meaning specified in the preliminary statements hereto.

 

“Issuer
Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by
the L/C Issuer and the Borrower (or any Subsidiary) or in favor of the L/C
Issuer and relating to such Letter of Credit.

 

“Joinder
Agreement” has the meaning specified in the Security Agreement.

 

“Joint
Venture” means a corporation, partnership, limited liability company, joint
venture or other similar arrangement (whether created by contract or conducted
through a separate legal entity) which is not a Subsidiary of any Loan Party or
any of their respective Subsidiaries and which is now or hereafter formed by
any Loan Party or any of their respective Subsidiaries with another Person in
order to conduct a common venture or enterprise with such Person.

 

“Laws”
means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities and all applicable
administrative orders, directed duties, licenses, authorizations and permits
of, and agreements with, any Governmental Authority, in each case where such
have the force of law.

 

“L/C
Advance” means, with respect to each Revolving Credit Lender, such Lender’s
funding of its participation in any L/C Borrowing in accordance with its
Applicable Revolving Credit Percentage.

 

“L/C
Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made refinanced as .a Revolving Credit
Borrowing.

 

“L/C Credit
Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount
thereof.

 

“L/C Issuer”
means Bank of America in its capacity as issuer of Letters of Credit hereunder,
or any successor issuer of Letters of Credit hereunder.

 

“L/C
Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For purposes
of computing the amount

 

22

 

available to
be drawn under any Letter of Credit, the amount of such Letter of Credit shall
be determined in accordance with Section 1.06. For all purposes of this
Agreement, if on any date of determination a Letter of Credit has expired by
its terms but any amount may still be drawn thereunder by reason of the
operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding”
in the amount so remaining available to be drawn.

 

“Lender”
has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Swing Line Lender.

 

“Lending
Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other
office or offices as a Lender may from time to time notify the Borrower and the
Administrative Agent.

 

“Letter of
Credit” means any letter of credit issued hereunder. A Letter of Credit may
be a commercial letter of credit or a standby letter of credit.

 

“Letter of
Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C
Issuer.

 

“Letter of
Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect for the Revolving Credit Facility (or, if such day
is not a Business Day, the next preceding Business Day).

 

“Letter of
Credit Fee” has the meaning specified in Section 2.03(i).

 

“Letter of
Credit Sublimit” means an amount equal to $10,000,000. The Letter of Credit
Sublimit is part of, and not in addition to, the Revolving Credit Facility.

 

“Licensed
Intellectual Property” has the meaning specified in Section 5.16.

 

“Lien” means, with
respect to any property, (a) any mortgage, deed of trust, deed to secure debt, lien (statutory
or otherwise), pledge, hypothecation, encumbrance, collateral assignment,
charge or security interest in, on or of such property, (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing), relating to such Property, and (c) in
the case of Equity Interests or debt securities, any purchase option, call or
similar right of a third party with respect to such Equity Interests or debt
securities. For the avoidance of doubt, “Lien” shall not include any netting or
set-off arrangements under any Contractual Obligation (other than any
Contractual Obligation constituting debt for borrowed money or having the
effect of debt for borrowed money) otherwise permitted under the terms of  this Agreement.

 

“Loan”
means an extension of credit by a Lender to the Borrower under Article II
in the form of a Term B Loan, a Revolving Credit Loan or a Swing Line Loan.

 

23

 

“Loan
Documents” means, collectively, (a) this Agreement, (b) the Notes, (c) the Guaranty, (d) the Collateral Documents, (e)
the Fee Letter, (f) each Issuer Document, (g) each Secured Hedge
Agreement, (h) each Secured Cash Management Agreement and (i) the Intercreditor
Agreement; provided that for purposes of the definition of “Material
Adverse Effect” and Articles IV
through IX, “Loan Documents” shall not include Secured Hedge
Agreements or Secured Cash Management Agreements.

 

“Loan
Parties” means, collectively, the Borrower and each Guarantor.

 

“Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the results of operations, business, properties, or
financial condition of Holdings and its Subsidiaries taken as a whole; (b) a
material impairment of the rights and remedies, taken as a whole, of the
Administrative Agent or any Lender under any Loan Document, or of the ability
of any Loan Party to perform its material obligations under any Loan Document
to which it is a party; or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Loan Party of any Loan
Document to which it is a party.

 

“Material
Contract” means, with respect to any Person, each contract to which such
Person is a party involving aggregate consideration payable to or by such
Person of $5,000,000 or more in any year or otherwise material to the business,
financial condition or results of operations of such Person.

 

“Maturity
Date” means (a) with respect to the Revolving Credit Facility, the sixth
anniversary of the Closing Date and (b) with respect to the Term B Facility,
the seventh anniversary of the Closing Date; provided, however,
that, in each case, if such date is not a Business Day, the Maturity Date shall
be the next preceding Business Day.

 

“Measurement
Period” means, at any date of determination, the most recently completed
four fiscal quarters of Holdings or, if fewer than four consecutive fiscal
quarters of Holdings have been completed since the Closing Date, the fiscal
quarters of Holdings that have been completed since the Closing Date taken
together with the number of fiscal quarters preceding the Closing Date of the
Borrower on a pro forma combined basis equal to four minus the number of fiscal quarters of Holdings
that have been completed since the Closing Date.

 

“Merger”
has the meaning specified in the Preliminary Statements. 

 

“Merger
Agreement” has the meaning specified in the Preliminary Statements.

 

“Moody’s”
means Moody’s Investors Service, Inc. and any successor thereto.

 

“Multiemployer
Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the
Borrower or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been
obligated to make contributions.

 

24

 

“Net Cash
Proceeds” means, (a) with respect to any Disposition (other than any Disposition
permitted under Section 7.05(a) through (f) or Section 7.05(h)),
the excess, if any, of (i) the sum of cash and Cash Equivalents received in
connection with such Disposition (including any cash or Cash Equivalents
received by way of deferred payment pursuant to, or by monetization of, a note
receivable or otherwise, but only as and when so received) over (ii) the sum of
(A) the principal amount of any Indebtedness (other than Indebtedness under the
Loan Documents) that is secured by such asset and that is required to be repaid
in connection with such Disposition, (B) the out-of-pocket costs, fees,
commissions, premiums and expenses (including attorneys fees, accountants’
fees, investment banking fees, survey costs, title insurance premiums and related
search and recording charges, transfer taxes, deed or mortgage recording taxes)
incurred by Holdings or its Subsidiaries in connection with such Disposition,
and (C) provisions for all federal, state, provincial, foreign and local taxes
reasonably estimated to be actually payable by the Loan Parties and their
Subsidiaries in connection with such Disposition, and (D) amounts required to
be paid to any Person (other than the Borrower or any Subsidiary of the
Borrower) having an interest in the asset subject to such Disposition; provided
however, that Net Cash Proceeds shall not include any such amounts that do
not exceed $2,500,000 in the aggregate in any fiscal year;

 

(b)           with respect to the
incurrence or issuance of any Indebtedness by Holdings or any of its
Subsidiaries (other than Indebtedness incurred or issued pursuant to Section
7.02), the excess of (i) the sum of cash and Cash Equivalents received in
connection with such incurrence or issuance over (ii) the underwriting
discounts and commissions or other similar payments and other out-of-pocket
costs, fees, commissions, premiums and expenses (including attorneys fees,
accountants’ fees, investment banking fees, survey costs, title insurance
premiums and related search and recording charges, transfer taxes, deed or
mortgage recording taxes) incurred by Holdings or its Subsidiaries in
connection with such incurrence or issuance; and

 

(c)           with respect to any
Extraordinary Receipt, the excess of (i) the sum of the cash and Cash
Equivalents received in connection with such Extraordinary Receipt over (ii)
the sum of (A) the principal amount of any Indebtedness (other than
Indebtedness under the Loan Documents) that is secured by the asset in respect
of which such Extraordinary Receipt is received and that is required to be
repaid with such Extraordinary Receipt, (B) the out-of-pocket costs, fees,
commissions, premiums and expenses (including attorneys fees, accountants’
fees, investment banking fees, survey costs, title insurance premiums and
related search and recording charges, transfer taxes, deed or mortgage
recording taxes) incurred by Holdings or its Subsidiaries in connection with
such Extraordinary Receipt, and (C) provisions for all federal, state,
provincial, foreign and local taxes reasonably estimated (on a consolidated
basis) to be actually payable as a result of such Extraordinary Receipt, and
(D) amounts required to be paid to any Person (other than the Borrower or any
Subsidiary of the Borrower) having an interest in the asset in respect of which
such Extraordinary Receipt is received; provided, however, that Net Cash
Proceeds shall not include any such amounts that do not exceed $2,500,000 in
the aggregate in any fiscal year.

 

“Note”
means a Term B Note or a Revolving Credit Note, as the context may require.

 

25

 

“Notice of
Election” means a notice substantially in the form of Exhibit K
hereto.

 

“Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, any Loan Party arising under any Loan Document or otherwise with
respect to any Loan or Letter of Credit, whether direct or indirect (including
those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter
arising and including, interest and fees that accrue after the
commencement by or against any Loan Party of any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding.

 

“Organization
Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) with respect to any
partnership, joint venture, trust or other form of business entity, the partnership,
joint venture or other applicable agreement of formation or organization and
any agreement, instrument, filing or notice with respect thereto filed in
connection with its formation or organization with the applicable Governmental Authority in the jurisdiction
of its ‘formation or organization and, if applicable, any certificate or
articles of formation or organization of such entity.

 

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

 

“Outstanding
Amount” means (a) with respect to Term B Loans, Revolving Credit Loans and
Swing Line Loans on any date, the aggregate outstanding principal amount
thereof after giving effect to any borrowings and prepayments or repayments of
Term B Loans, Revolving Credit Loans and Swing Line Loans, as the case may be,
occurring on such date; and (b) with respect to any L/C Obligations on any
date, the amount of such L/C Obligations on such date after giving effect to
any L/C Credit Extension occurring on such date and any other changes in the
aggregate amount of the L/C Obligations as of such date, including as a result
of any reimbursements by the Borrower of Unreimbursed Amounts.

 

“Owned
Intellectual Property” has the meaning specified in Section 5.16.

 

“Participant”
has the meaning specified in Section 11.06(d).

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“PCAOB”
means the Public Company Accounting Oversight Board.

 

“Pension
Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to
Title IV of ERISA and is sponsored or maintained by the Borrower or any ERISA
Affiliate or to which the

 

26

 

Borrower or
any ERISA Affiliate contributes or has an obligation to contribute, or in the
case of a multiple employer or other plan described in Section 4064(a) of
ERISA, has made contributions at any time during the immediately preceding five
plan years.

 

“Perfection Certificate”
means’ a certificate in the form of Exhibit I or any other form
approved by the Administrative Agent, as the same shall be supplemented from
time to time.

 

“Permitted
Acquisition” has the meaning specified in Section 7.03(h).

 

“Permitted
Holders” means Sponsor and any member of the Berman Family.

 

“Permitted
Refinancing” means, with respect to any Person, any modification,
refinancing, refunding, renewal or extension of any Indebtedness of such
Person; provided that (i) the principal amount
(or accreted value, if applicable) thereof does not exceed the principal amount
(or accreted value, if applicable) of the Indebtedness so modified, refinanced,
refunded, renewed or extended except by an amount equal to any interest
capitalized in connection with, any premium or other reasonable amount paid,
and fees and expenses reasonably incurred, in connection with such
modification, refinancing, refunding, renewal or extension and by an amount
equal to any existing commitments unutilized thereunder or as otherwise
permitted pursuant to Section 7.02, (ii) such modification, refinancing,
refunding, renewal or extension has a final maturity date equal to or later
than the final maturity date of, and has a Weighted Average Life to Maturity
equal to or greater than the Weighted Average Life to Maturity of, the
Indebtedness being modified, refinanced, refunded, renewed or extended, (iii)
if the Indebtedness being modified, refinanced, refunded, renewed or extended
is subordinated in right of payment to the Obligations, such modification,
refinancing, refunding, renewal or extension is subordinated in right of
payment to the Obligations on terms at least as favorable on the whole to the
Lenders as those contained in the documentation governing the Indebtedness
being modified, refinanced, refunded, renewed or extended, (iv) such
modification, refinancing, refunding, renewal or extension is incurred by the
Person who is the obligor on the Indebtedness being modified, refinanced,
refunded, renewed or extended, and (v) at the time thereof, no Event of Default
shall have occurred and be continuing.

 

“Person”
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity.

 

“Plan”
means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by any Loan Party or, with respect to any such plan that is
subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

 

“Platform”
has the meaning specified in Section 6.02.

 

“Pledged
Securities” has the meaning specified in the Security Agreement.

 

“Post-Increase
Revolving Credit Lenders” has the meaning specified in Section 2. 14(d).

 

27

 

“Pre-Increase
Revolving Credit Lenders” has the meaning specified in Section 2.14(d).

 

“Pro Forma
Basis” shall mean on a basis consistent with GAAP and Regulation S-X under
the Securities Act of 1933 or as otherwise agreed to by the Arrangers.

 

“Public
Market” shall exist if (a) a Public Offering has been consummated and (b)
any Equity Interests of Holdings have been distributed by means of an effective
registration statement under the Securities Act of 1933.

 

“Public
Offering” means a public offering of the Equity Interests of Holdings
pursuant to an effective registration statement under the Securities Act of
1933.

 

“Register”
has the meaning specified in Section 11.06(c);

 

“Registered
Public Accounting Firm” has the meaning specified by the Securities Laws
and shall be independent of Holdings as prescribed by the Securities Laws.

 

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

 

“Reportable
Event” means any of the events set forth in Section 4043(c) of ERISA, other
than events for which the 30 day notice period has been waived.

 

“Request
for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Term B Loans or Revolving Credit Loans, a Committed Loan
Notice, (b) with respect to an L/C Credit Extension, a Letter of Credit
Application, and (c) with respect to a Swing Line Loan, a Swing Line Loan
Notice.

 

“Required
Lenders” means, as of any date of determination, Lenders holding more than
50% of the sum of the (a) Total Outstandings (with the aggregate amount of each
Revolving Credit Lender’s risk participation and funded participation in L/C
Obligations and Swing Line Loans being deemed “held” by such Revolving Credit
Lender for purposes of this definition) and (b) aggregate unused Revolving
Credit Commitments; provided that the unused Revolving Credit Commitment
of, and the portion of the Total Outstandings held or deemed held by, any
Defaulting Lender shall be excluded for purposes of making a determination of
Required Lenders.

 

“Required
Revolving Lenders” means, as of any date of determination, Revolving Credit
Lenders holding more than 50% of the sum of the (a) Total Revolving Credit
Outstandings (with the aggregate amount of each Revolving Credit Lender’s risk
participation and funded participation in L/C Obligations and Swing Line Loans
being deemed “held” by such Revolving Credit Lender for purposes of this
definition) and (b) aggregate unused Revolving Credit Commitments; provided
that the unused Revolving Credit Commitment of, and the portion of the Total
Revolving Credit Outstandings held or deemed held by, any Defaulting

 

28

 

Lender shall
be excluded for purposes of making a determination of Required Revolving
Lenders.

 

“Required
Term B Lenders” means, as of any date of determination, Term B Lenders
holding more than 50% of the Term B Facility on such date; provided that
the portion of the Term B Facility held by any Defaulting Lender shall be
excluded for purposes of making a determination of Required Term B Lenders.

 

“Responsible Officer”
means the chief executive officer, president, chief financial. officer,
treasurer, assistant treasurer or controller of a Loan Party. Any document
delivered hereunder that is signed by a Responsible Officer of a Loan Party
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf
of such Loan Party.

 

“Restricted
Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity
Interest of any Person or any of its Subsidiaries, or any payment (whether in
cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, defeasance,
acquisition, cancellation or termination of any such capital stock or other
Equity Interest, or on account of any return of capital to any Person’s
stockholders, partners or members (or the equivalent of any thereof), or any
option, warrant or other right to acquire any such dividend or other distribution
or payment.

 

“Revolving
Credit Borrowing” means a borrowing consisting of simultaneous Revolving
Credit Loans of the same Type and, in the case of Eurodollar Rate Loans, having
the same Interest Period made by each of the Revolving Credit Lenders pursuant
to Section 2.01(b).

 

“Revolving
Credit Commitment” means, as to each Revolving Credit Lender, its
obligation to (a) make Revolving Credit Loans to the Borrower pursuant to Section
2.01(b), (b) purchase participations in L/C Obligations, and (c) purchase
participations in Swing Line Loans, in an aggregate principal amount at any one
time outstanding not to exceed the amount set forth opposite such Lender’s name
on Schedule 2.01 under the caption “Revolving Credit Commitment” or
opposite such caption in the Assignment and Assumption pursuant to which such
Lender becomes a party hereto, as applicable, as such amount may be adjusted
from time to time
in accordance with this Agreement.

 

“Revolving
Credit Facility” means, at any time, the aggregate amount of the Revolving
Credit Lenders’ Revolving Credit Commitments at such time.

 

“Revolving
Credit Lender” means, at any time, any Lender that has a Revolving Credit Commitment at such time.

 

“Revolving
Credit Loan” has the meaning specified in Section 2.01(b).

 

29

 

“Revolving
Credit Note” means a promissory note made by the Borrower in favor of a
Revolving Credit Lender evidencing Revolving Credit Loans or Swing Line Loans,
as the case may be, made by such Revolving Credit Lender, substantially in the
form of Exhibit C-2.

 

“RiskMetrics”
has the meaning specified in the Preliminary Statements.

 

“RMG
Audited Financial Statements” means the audited consolidated balance sheet
of RiskMetrics and its Subsidiaries for the fiscal year ended December 31,
2005, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal year of RiskMetrics and its
Subsidiaries, including the notes thereto.

 

“RMG Holdco”
has the meaning specified in the Preliminary Statements. 

 

“RMG Merger”
has the meaning specified in the Preliminary Statements. 

 

“RMG Merger
Sub” has the meaning specified in the Preliminary Statements.

 

“Rollover
Equity Contribution” has the meaning specified in the Preliminary
Statements.

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., and any successor thereto.

 

“Second
Lien Administrative Agent” means Bank of America, N.A., in its capacity as
administrative agent under the Second Lien Credit Agreement and its successors
and assigns.

 

“Second
Lien Loan Documents” means the Second Lien Credit Agreement and the other
Loan Documents (as defined in the Second Lien Credit Agreement).

 

“Second
Lien Loans” means the senior secured second lien term loan facility under
the Second Lien Credit Agreement.

 

“Second
Lien Credit Agreement” means (i) that certain credit agreement dated as of
the date hereof among the Borrower, Holdings, the lenders party thereto, Bank
of America, N.A., as administrative agent and as collateral agent, as amended,
restated, supplemented or modified from time to time to the extent permitted by
this Agreement and the Intercreditor Agreement and (ii) any other credit
agreement, loan agreement, note agreement, promissory note, indenture or other
agreement or instrument evidencing or governing the terms of any indebtedness
or other financial accommodation that has been incurred to extend (subject to
the limitations set forth herein and in the Intercreditor Agreement) or
refinance in whole or in part the indebtedness and other obligations
outstanding under the (x) credit agreement referred to in clause (i) or (y) any
subsequent Second Lien Credit Agreement, unless such agreement or instrument
expressly provides that it is not intended to be and is not a Second Lien
Credit Agreement hereunder. Any reference to the Second Lien Credit Agreement
hereunder shall be deemed a reference to any Second Lien Credit Agreement then
in existence.

 

30

 

“SEC”
means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

 

“Secured
Cash Management Agreement” means any Cash Management Agreement that is
entered into by and between any Loan Party and any Cash Management Bank.

 

“Secured
Hedge Agreement” means any interest rate Swap Contract required or
permitted under Article VI or VII that is entered into by and
between any Loan Party and any Hedge Bank.

 

“Secured
Parties” means, collectively, the Administrative Agent, the Lenders, the
L/C Issuer, the Hedge Banks, the Cash Management Banks, each co-agent or
sub-agent appointed by the Administrative Agent from time to time pursuant to Section
9.05.

 

“Securities
Laws” means the Securities Act of 1933, the Securities Exchange Act of
1934, Sarbanes-Oxley, and the applicable accounting and auditing principles,
rules, standards and practices promulgated, approved or incorporated by the SEC
or the PCAOB.

 

“Security Agreement”
has the meaning specified in Section 4.01 (a)(iii).

 

“Seller”
has the meaning specified in the Preliminary Statements.

 

“Significant
Subsidiary” means, at any date of determination, any Subsidiary of the
Borrower that, either individually or together with its Subsidiaries, taken as
a whole, has revenues, assets or earnings in an amount equal to at least 2% of
(a) the consolidated revenues of the Borrower and its Subsidiaries for the most
recently completed fiscal quarter for which the Lenders have received financial
statements of Holdings and its Subsidiaries pursuant to Section 6.01(a)
or 6.01(b), (b) the consolidated assets of the Borrower and its
Subsidiaries as of the last day of the most recently completed fiscal quarter
for which the Lenders have received financial statements of Holdings and its Subsidiaries
pursuant to Section 6.01 (a) or 6.01(b), or (c) the consolidated
net earnings of the Borrower and its Subsidiaries for the most recently
completed fiscal quarter for which the Lenders have received financial statements
of Holdings and its Subsidiaries pursuant to Section 6.01(a) or 6.01(b),
respectively, in each case determined in accordance
with GAAP for such period.

 

“Solvent”
and “Solvency” mean, with respect to any Person on any date of
determination, that on such date (a) the fair value of the property of such
Person and its Subsidiaries, on a consolidated basis, is greater than the total
amount of liabilities, including contingent liabilities, of such Person and its
Subsidiaries, on a consolidated basis, (b) the present fair salable value of
the assets of such Person and its Subsidiaries, on a consolidated basis, is not
less than the amount that will be required to pay the probable liability of
such Person on its debts as they become absolute and matured, (c) such Person
does not intend to, and does not believe that it will, incur debts or
liabilities beyond such Person’s and its Subsidiaries’, on a consolidated basis, ability to pay such debts and
liabilities as they mature, and (d) such Person and its Subsidiaries, on
a consolidated basis, is not engaged in business or a transaction, and is not
about to engage in business or a transaction, for which such Person’s and its
Subsidiaries’, on a consolidated basis, property would constitute an unreasonably
small capital. The amount of

 

31

 

contingent
liabilities at any time shall be computed as the amount that, in the light of
all the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured liability.

 

“Sponsor” means,
collectively,. (i) Spectrum Equity Investors IV, L.P., Spectrum Equity Investors V, L.P.,
Applegate.& Collatos, Inc., Applegate & Collatos, LLC and their respective controlled Affiliates, (ii)
controlled Affiliates of General Atlantic LLC and (iii) Technology
Crossover Management V, L.L.C. and its controlled Affiliates.

 

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled,
directly, or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise specified, all references herein to a “Subsidiary”
or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of
Holdings. Notwithstanding the foregoing (except for the definition of “Unrestricted
Subsidiary” contained herein), an Unrestricted Subsidiary shall be deemed not
to be a Subsidiary of Holdings or any of its Subsidiaries for purposes of this
Agreement.

 

“Subsidiary
Redesignation” has the meaning specified in Section 6.17.

 

“Swap Contract” means
(a) any, and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price
or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and(b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

 

“Swap
Termination Value” means, in respect of any one or more Swap Contracts,
after taking into account the effect of any legally enforceable netting
agreement relating to such Swap Contracts, (a) for any date on or after the
date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as
the mark-to-market value(s) for such Swap Contracts, as determined based upon
one or more mid-market or other readily available quotations provided by any
recognized dealer in such Swap Contracts (which may include a Lender or any
Affiliate of a Lender).

 

32

 

“Swing Line”
means the revolving credit facility made available by the Swing Line Lender
pursuant to Section 2.04.

 

“Swing Line
Borrowing” means a borrowing of a Swing Line Loan pursuant to Section
2.04.

 

“Swing Line
Lender” means Bank of America in its capacity as provider of Swing Line
Loans, or any successor swing line lender hereunder.

 

“Swing Line
Loan” has the meaning specified in Section 2.04(a).

 

“Swing Line
Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section
2.04(b), which, if in writing, shall be substantially in the form of Exhibit
B.

 

“Swing Line
Sublimit” means an amount equal to the lesser of (a) $4,000,000 and (b) the
Revolving Credit Facility. The Swing Line Sublimit is part of, and not in
addition to, the Revolving Credit Facility.

 

“Synthetic
Debt” means, with respect to any Person as of any date of determination
thereof, all obligations of such Person in respect of transactions entered into
by such Person that are intended to function primarily as a borrowing of funds
(including any minority interest transactions that function primarily as a
borrowing) but are not otherwise included in the definition of “Indebtedness”
or as a liability on the consolidated balance sheet of such Person and its
Subsidiaries in accordance with GAAP.

 

“Synthetic
Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an
agreement for the use or possession of property (including sale and leaseback
transactions), in each case, creating obligations that do not appear on the
balance sheet of such Person but which, upon the application of any Debtor
Relief Laws to such Person, would be characterized as the indebtedness of such Person (without regard
to accounting treatment).

 

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

 

“Term B
Borrowing” means a borrowing consisting of simultaneous Term B Loans of the
same Type and, in the case of Eurodollar Rate Loans, having the same Interest
Period made by each of the Term B Lenders pursuant to Section 2.01(a).

 

“Term B
Commitment” means, as to each Term B Lender, its obligation to make Term B
Loans to the Borrower pursuant to Section 2.01(a) in an aggregate
principal amount at any one time outstanding not to exceed the amount set forth
opposite such Lender’s name on Schedule 2.01 under the caption “Term B
Commitment” or opposite such caption in the Assignment and Assumption pursuant
to which such Term B Lender becomes a party hereto, as applicable, as such
amount may be adjusted from time to time in accordance with this Agreement.

 

33

 

“Term B
Facility” means, at any time, (a) on or prior to the Closing Date, the
aggregate amount of the Term B Commitments at such time and (b) thereafter, the
aggregate principal amount of the Term B Loans of all Term B Lenders
outstanding at such time.

 

“Term B
Lender” means at any time, (a) on or prior to the Closing Date, any Lender
that has a Term B Commitment at such time and (b) at any time after the Closing
Date,. any Lender that holds Term B Loans at such time.

 

“Term B
Loan” means an advance made by any Term B Lender under the Term B Facility.

 

“Term B
Note” means a promissory note made by the Borrower in favor of a Term B
Lender, evidencing Term B Loans made by such Term B Lender, substantially in
the form of Exhibit C-1.

 

“Threshold
Amount” means $10,000,000.

 

“Total
Revolving Credit Outstandings” means the aggregate Outstanding Amount of
all Revolving Credit Loans, Swing Line Loans and L/C Obligations.

 

“Total
Outstandings” means the aggregate Outstanding Amount of all Loans and all
L/C Obligations.

 

“Transaction”
means, collectively, (a) the organization of Holdings and the issuance of
Equity Interests therein to the Permitted Holders and other stockholders and
option holders of RiskMetrics, the Rollover Equity Contribution, the rollover
of options in the Seller into Holdings, and the granting of options and stock
appreciation rights in Holdings to employees of the Loan Parties, (b) the
consummation of the Merger, (c) the entering into by the Loan Parties and their
applicable Subsidiaries of the Loan Documents to which they are or are intended
to be a party, (d) the refinancing of certain outstanding Indebtedness of the
Borrower, Seller and their respective Subsidiaries and the termination of all
commitments with respect thereto and (e) the payment of the fees and expenses
incurred in connection with the consummation of the foregoing.

 

“Type”
means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan.

 

“UCC”
means the Uniform Commercial Code as in effect in the State of New York; provided
that, if perfection or the effect of perfection or non-perfection or the
priority of any security interest in any Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New
York, “UCC” means the Uniform Commercial Code as in effect from time to
time in such other jurisdiction for purposes of the provisions hereof relating
to such perfection, effect of perfection or non-perfection or priority.

 

“Unfunded
Pension Liability” means the excess of a Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s

 

34

 

assets, determined in
accordance with the assumptions used for funding the Pension Plan pursuant
to Section 412 of the Code for the applicable plan year.

 

“United
States” and “U.S.” mean the United States of America.

 

“Unreimbursed
Amount” has the meaning specified in Section 2.03(c)(i).

 

“Unrestricted
Subsidiary” means any Subsidiary of Holdings designated as an Unrestricted
Subsidiary pursuant to Section 6.17.

 

“U.S. Loan
Party” means any Loan Party that is organized under the laws of one of the
states of the United States of America and that is not a CFC.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing: (i) the sum of the products obtained by multiplying (A) the amount
of each then remaining installment, sinking fund, serial maturity or other
required payments of principal, including payment at final maturity, in respect
thereof, by (B) the number of years (calculated to the nearest one-twelfth)
that will elapse between such date and the making of such payment; by (ii) the
then outstanding principal amount of such Indebtedness.

 

1.02.       Other Interpretive Provisions.
With reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document:

 

(a)           The definitions of
terms herein shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” The word “will” shall be construed to have
the same meaning and effect as the word “shall.” Unless the context
requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein
or in any other Loan Document), (ii) any reference herein to any Person shall
be construed to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used
in any Loan Document, shall be construed to refer to such Loan Document in its
entirety and not to any particular provision thereof, (iv) all references in a
Loan Document to Articles, Sections, Preliminary Statements, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and
Preliminary Statements, Exhibits and Schedules to, the Loan Document in which
such references appear, (v) any reference to any law shall include all
statutory and regulatory provisions consolidating, amending, replacing or
interpreting such law and any reference to any law or regulation shall, unless
otherwise specified, refer to such law or regulation
as amended, modified or supplemented from time to time, and (vi) the words “asset”
and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

35

 

(b)           In the computation of
periods of time from a specified date to a later specified date, the word “from means “from and including;”
the words “to” and “until” each  mean “to but
excluding;” and the word “through” means “to and including.”

 

(c)           Section headings herein
and in the other Loan Documents are included for convenience of reference only
and shall not affect the interpretation of this Agreement or any other Loan
Document.

 

1.03.       Accounting Terms.

 

(a)           Generally. All
accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial
ratios and other financial calculations) required to be submitted pursuant to
this Agreement shall be prepared in conformity with, GAAP applied on a
consistent basis, as in effect from time to time.

 

(b)           Changes in GAAP.
If at any time any change in GAAP would affect the computation of any financial
ratio or requirement set forth in any Loan Document, and either the Borrower or
the Required Lenders shall so request, the Administrative Agent, the Lenders
and the Borrower shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Required Lenders); provided that,
until so amended, (i) such ratio or requirement shall continue to be computed
in accordance with GAAP prior to such change therein and (ii) the Borrower
shall provide to the Administrative Agent and the Lenders financial statements
and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

 

1.04.       Rounding. Any financial ratios
required to be maintained by the Borrower pursuant to this Agreement shall be
calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such
ratio is expressed herein and rounding the result up or down to the nearest
number (with a rounding-up if there is no nearest number).

 

1.05.       Times of Day. Unless otherwise
specified, all references herein to times of day shall be references to Eastern
time (daylight or standard, as applicable).

 

1.06.       Letter of Credit Amounts. Unless
otherwise specified herein, the amount of a Letter of Credit at any time shall
be deemed to be the stated amount of such Letter of Credit in effect at such
time; provided, however, that with respect to any Letter of
Credit that, by its terms or the terms of any Issuer Document related thereto,
provides for one or more automatic increases in the stated amount thereof, the
amount of such Letter of Credit shall be deemed to be the maximum stated amount
of such Letter of Credit after giving effect to all such increases, whether or
not such maximum stated amount is in effect at such time.

 

1.07.       Currency Equivalents Generally.
Any amount specified in this Agreement (other than in Articles II, IX
and X ) or any of the other Loan Documents to be in Dollars shall also
include the equivalent of such amount in any currency other than Dollars, such
equivalent

 

36

 

amount thereof
in the applicable currency to be determined by the Administrative Agent at such
time on the basis of the Spot Rate (as defined below) for the purchase of such
currency with Dollars; For purposes of this Section 1.07, the “Spot
Rate” for a currency means the rate determined by the Administrative Agent
to be the rate quoted by the Person acting in such capacity as the spot rate
for the purchase by such Person of such currency with another currency through
its principal foreign exchange trading office at approximately 11:00 a.m. on
the date two Business Days prior to the date of such determination; provided
that the Administrative Agent may obtain such spot rate from another financial
institution designated by the Administrative Agent if the Person acting in such
capacity does not have as of the date of determination a spot buying rate for
any such currency.

 

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

 

2.01.       The Loans.

 

(a)           The Term B Borrowing. Subject to the terms
and conditions set forth herein, each Term B Lender severally agrees to make a
single loan to the Borrower on the Closing Date in an amount not to exceed such
Term B Lender’s Term B Commitment. The Term B Borrowing shall consist of Term B
Loans made simultaneously by the Term B Lenders in accordance with their
respective Term B Commitments. Amounts borrowed under this Section 2.01(a)
and repaid or prepaid may not be reborrowed. Term B Loans may be Base Rate
Loans or Eurodollar Rate Loans as further provided herein.

 

(b)           The Revolving Credit Borrowings.  Subject to the terms and conditions set forth herein, each
Revolving Credit Lender severally agrees to make loans (each such loan, a “Revolving
Credit Loan”) to the Borrower from time to time, on any Business Day during
the Availability Period, in an aggregate amount not to exceed at any time
outstanding the amount of such Lender’s Revolving Credit Commitment; provided,
however, that after giving effect to any Revolving Credit Borrowing, (i)
the Total Revolving Credit Outstandings shall not exceed the Revolving Credit
Facility, and (ii) the aggregate Outstanding Amount of the Revolving Credit
Loans of any Lender, plus such Revolving Credit Lender’s Applicable
Revolving Credit  Percentage of the Outstanding Amount of all L/C
Obligations, plus such Revolving Credit Lender’s Applicable Revolving
Credit Percentage of the Outstanding Amount of all Swing Line Loans shall not
exceed such Revolving Credit Lender’s Revolving Credit Commitment. Within the
limits of each Revolving Credit Lender’s Revolving Credit Commitment, and
subject to the other terms and conditions hereof, the Borrower may borrow under
this Section 2.01 (b), prepay under Section 2.05, and reborrow
under this Section 2.01(b). Revolving Credit Loans may be Base Rate
Loans or Eurodollar Rate Loans, as further provided herein.

 

2.02.       Borrowings, Conversions and Continuations of Loans.

 

(a)           Each Term B Borrowing,
each Revolving Credit Borrowing, each conversion of Term B Loans or Revolving
Credit Loans from one Type to the other, and each continuation of Eurodollar
Rate Loans shall be made upon the Borrower’s irrevocable notice to the
Administrative Agent, which may be given by telephone. Each such notice must be
received by the Administrative Agent not later than 11:00 a.m. (i) three
Business Days prior to the

 

37

 

requested date
of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or
of any conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) on the
requested date of any
Borrowing of Base Rate Loans; provided,  however, that if the
Borrower wishes to request Eurodollar Rate Loans having an Interest
Period other than one, two, three or six months in duration as provided in the
definition of “Interest Period,” the applicable notice must be received by the
Administrative Agent not later than 11:00 a.m. four Business Days prior to the
requested date of such Borrowing, conversion or continuation, whereupon the
Administrative Agent shall give prompt notice to the Lenders of such request
and determine whether the requested Interest Period is acceptable to all of
them. Not later than 11:00 a.m., three Business Days before the requested date
of such Borrowing, conversion or continuation, the Administrative Agent shall
notify the Borrower (which notice may be by telephone) whether or not the
requested Interest Period has been consented to by all the Lenders. Each
telephonic notice by the Borrower pursuant to this Section 2.02(a) must
be confirmed promptly by delivery to the Administrative Agent of a written
Committed Loan Notice, appropriately completed and signed by a Responsible
Officer of the Borrower. Each Borrowing of, conversion to or continuation of
Eurodollar Rate Loans shall be in a principal amount of $2,000,000 or a whole
multiple of $1,000,000 in excess thereof. Except as provided in Sections
2.03(c) and 2.04(c), each Borrowing of or conversion to Base Rate
Loans shall be in a principal amount of $500,000 or a whole multiple of
$100,000 in excess thereof. Each Committed Loan Notice (whether telephonic or
written) shall specify (i) whether the Borrower is requesting a Term B
Borrowing, a Revolving Credit Borrowing, a conversion of Term B Loans or
Revolving Credit Loans from one Type to
the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date
of the Borrowing, conversion or continuation, as the case may be (which
shall be a Business Day), (iii) the principal amount of Loans to be borrowed,
converted or continued, (iv) the Type of Loans to be borrowed or to which
existing Term B Loans or Revolving Credit Loans are to be converted, and (v) if
applicable, the duration of the Interest Period with respect thereto. If the
Borrower fails to specify a Type of Loan in a Committed Loan Notice or if the
Borrower fails to give a timely notice requesting a conversion or continuation,
then the applicable Term B Loans or Revolving Credit Loans shall be made as, or
converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans
shall be effective as of the last day of the Interest Period then in effect
with respect to the applicable Eurodollar Rate Loans. If the Borrower requests
a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any
such Committed Loan Notice, but fails to specify an Interest Period, it will be
deemed to have specified an Interest Period of one month. Notwithstanding
anything to the contrary herein, a Swing Line Loan may not be converted to a Eurodollar Rate Loan.

 

(b)           Following receipt of a Committed Loan Notice,
the Administrative Agent shall promptly notify each Lender of the amount of its
Applicable Percentage under the applicable Facility of the applicable Term B
Loans or Revolving Credit Loans, and if no timely notice of a conversion or
continuation is provided by the Borrower, the Administrative Agent shall notify
each Lender of the details of any automatic conversion to Base Rate Loans
described in Section 2.02(a). In the case of a Term B Borrowing or a
Revolving Credit Borrowing, each Appropriate Lender shall make the amount of
its Loan available to the Administrative Agent in immediately available funds
at the Administrative Agent’s Office not later than 1:00 p.m. on the Business
Day specified in the applicable Committed Loan Notice. Upon satisfaction of the
applicable conditions set forth in Section 4.02 (and, if such Borrowing
is the initial Credit

 

38

 

Extension, Section
4.01), the Administrative Agent shall make all funds so received available
to the Borrower in like funds as received by the Administrative Agent either by
(i) crediting the account of the Borrower on the books of Bank of America with
the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the
Administrative Agent by the Borrower; provided, however, that if,
on the date a Committed Loan Notice with respect to a Revolving Credit
Borrowing is given by the Borrower, there are L/C Borrowings outstanding, then
the proceeds of such Revolving Credit Borrowing, first shall be applied
to the payment in full of any such L/C Borrowings, and second, shall be made available to the Borrower as
provided above.

 

(c)           Except as otherwise provided herein, a
Eurodollar Rate Loan may be continued or converted only on the last day of an
Interest Period for such Eurodollar Rate Loan. During the existence of a
Default, no Loans may be requested as, converted to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders.

 

(d)           The Administrative Agent shall promptly
notify the Borrower and the Lenders of the interest rate applicable to any
Interest Period for Eurodollar Rate Loans upon determination of such interest
rate. At any time that Base Rate Loans are outstanding, the Administrative
Agent shall notify the Borrower and the Lenders of any change in Bank of
America’s prime rate used in determining the Base Rate promptly following the
public announcement of such change.

 

(e)           After giving effect to all Term B Borrowings, all
conversions of Term B Loans from one Type to the other, and all continuations
of Term B Loans as the same Type, there shall not be more than six Interest
Periods in effect in respect of the Term B Facility. After giving effect to all
Revolving Credit Borrowings, all conversions of Revolving Credit Loans from one
Type to the other, and all continuations of Revolving Credit Loans as the same
Type, there shall not be more than ten Interest Periods in effect in respect of
the Revolving Credit Facility.

 

(f)            Anything in this  Section 2.02 to the
contrary notwithstanding, the Borrower may not select (i) the Eurodollar Rate
for the initial Credit Extension or (ii) Interest Periods for Eurodollar Rate
Loans that have a duration of more than one month during the period from the
date hereof to 30 days after the Closing Date (or such earlier date as shall be
specified by the Administrative Agent in a notice to the Borrower and the
Lenders).

 

2.03.       Letters of Credit.

 

(a)           The Letter of Credit
Commitment.

 

(i)            Subject to the terms
and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon
the agreements of the Revolving Credit Lenders set forth in this  Section
2.03, (1) from time to time on any Business Day during the period from the
Closing Date until the Letter of Credit Expiration Date, to issue Letters of
Credit for the account of the Borrower
or its Subsidiaries and to amend or extend Letters of Credit previously
issued by it, in accordance with Section 2.03(b), and (2) to honor
drawings under the Letters of Credit; and (B) the Revolving Credit Lenders
severally agree to

 

39

 

participate in
Letters of Credit issued for the account of the Borrower or its Subsidiaries
and any drawings thereunder; provided that after giving effect to any
L/C Credit Extension with respect to any Letter of Credit, (x) the Total
Revolving Credit Outstandings shall not exceed the Revolving Credit Facility,
(y) the aggregate Outstanding Amount of the Revolving Credit Loans of any
Revolving Credit Lender, plus such Lender’s Applicable Revolving Credit
Percentage of the Outstanding Amount of all L/C Obligations, plus such
Lender’s Applicable Revolving Credit Percentage of the Outstanding Amount of
all Swing Line Loans shall not exceed such Lender’s Revolving Credit
Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not
exceed the Letter of Credit Sublimit.  Each request by the Borrower for the issuance
or amendment of a Letter of Credit shall be deemed to be a representation by
the Borrower that the L/C Credit Extension so requested complies with the
conditions set forth in the proviso to the preceding sentence. Within the
foregoing limits, and subject to the terms and conditions hereof, the Borrower’s
ability to obtain Letters of Credit shall be fully revolving, and accordingly
the Borrower may, during the foregoing period, obtain Letters of Credit to
replace Letters of Credit that have expired or that have been drawn upon and reimbursed.

 

(ii)           The L/C Issuer shall not issue any Letter of Credit if:

 

(A)          the expiry date of such requested Letter of
Credit would occur more than twelve months after the date of issuance or last
extension, unless the Required Revolving Lenders have approved such expiry
date; or

 

(B)          the expiry date of such requested Letter of
Credit would occur after the Letter of Credit Expiration Date, unless all the
Revolving Credit Lenders have approved such expiry date.

 

(iii)          The L/C Issuer shall not be under any obligation to issue
any Letter of Credit if:

 

(A)          any order, judgment or decree of any Governmental
Authority or arbitrator shall by its terms purport to enjoin or restrain the
L/C Issuer from issuing such Letter of Credit, or any Law applicable to the L/C
Issuer or any request or directive (whether or not having the force of law)
from any Governmental Authority with jurisdiction over the L/C Issuer shall
prohibit, or request that the L/C Issuer refrain from, the issuance of letters
of credit generally or such Letter of Credit in particular or shall impose upon
the L/C Issuer with respect to such Letter of Credit any restriction, reserve
or capital requirement (for which the L/C Issuer is not otherwise compensated
hereunder) not in effect on the Closing Date, or shall impose upon the L/C
Issuer any unreimbursed loss, cost or expense which was not applicable on the
Closing Date and which the L/C Issuer in good faith deems material to it;

 

(B)          the issuance of such Letter of Credit would violate
one or more policies of the L/C Issuer applicable to letters of credit
generally;

 

40

 

(C)          except as otherwise agreed by the
Administrative Agent and the L/C Issuer, such Letter of Credit is in an initial
stated amount less than $10,000, in the case of a commercial Letter of Credit,
or $10,000, in the case of a standby Letter of Credit;

 

(D)          such Letter of Credit is
to be denominated in a currency other than Dollars;

 

(E)           such
Letter of Credit contains any provisions for automatic reinstatement of the
stated amount after any drawing thereunder; or

 

(F)           a default of any Lender’s obligations to
fund under Section 2.03(c) exists or any Lender is at such time a
Defaulting Lender hereunder, unless the L/C Issuer has entered into
satisfactory arrangements with the Borrower or such Lender to eliminate the L/C
Issuer’s risk with respect to such Lender.

 

(iv)          The L/C Issuer shall not amend any Letter of
Credit if the L/C Issuer would not be permitted at such time to issue such
Letter of Credit in its amended form under the terms hereof.

 

(v)           The L/C Issuer shall be under no obligation to amend any
Letter of Credit if (A) the L/C Issuer would have no obligation at such
time to issue such Letter of Credit in its amended form under the terms hereof,
or (B) the beneficiary of such Letter of Credit does not accept the proposed
amendment to such Letter of Credit.

 

(vi)          The L/C Issuer shall act on behalf of the
Revolving Credit Lenders with respect to any Letters of Credit issued by it and
the documents associated therewith, and the L/C Issuer shall have all of the
benefits and immunities (A) provided to the Administrative Agent in Article
IX with respect to any acts taken or omissions suffered by the L/C Issuer
in connection with Letters of Credit issued by it or proposed to be issued by
it and Issuer Documents pertaining to such Letters of Credit as fully as if the
term “Administrative Agent” as used in Article IX included the L/C
Issuer with respect to such acts or omissions, and (B) as additionally provided
herein with respect to the L/C Issuer.

 

(b)           Procedures for Issuance and Amendment of Letters
of Credit; Auto-Extension Letters of Credit.

 

(i)            Each Letter of Credit
shall be issued or amended, as the case may be, upon the request of the Borrower delivered to the L/C Issuer (with a copy to
the Administrative Agent) in the form of a Letter of Credit Application,
appropriately completed and signed by a Responsible Officer of each Borrower.
Such Letter of Credit Application must be received by the L/C Issuer and the
Administrative Agent not later than 11:00 a.m. at least two Business Days (or
such later date and time as the Administrative Agent and the L/C Issuer may
agree in a particular instance in their sole discretion) prior to the proposed
issuance date or date of amendment, as the case may be. In the case of a
request for an initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in 

 

41

 

form and
detail satisfactory to the L/C Issuer:  (A) the proposed issuance date of the
requested Letter of Credit (which shall be a Business Day); (B) the amount
thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof (E) the documents to be presented by such beneficiary in
case of any drawing thereunder; (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing thereunder; and (G) such
other matters as the L/C Issuer may require. In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (1)
the Letter of Credit to be amended; (2) the proposed date of amendment thereof
(which shall be a Business Day); (3) the nature of the proposed amendment; and
(4) such other matters as the L/C Issuer may require.  Additionally, the Borrower shall furnish to
the L/C Issuer and the Administrative Agent such other documents and
information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the L/C Issuer or the
Administrative Agent may require.

 

(ii)           Promptly after receipt of
any Letter of Credit Application, the L/C Issuer will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has received a copy of such Letter of Credit Application from the Borrower and,
if not, the L/C Issuer will provide the Administrative Agent with a copy
thereof Unless the L/C Issuer has received written notice from any Revolving
Credit Lender, the Administrative Agent or any Loan Party, at least one
Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained
in Article IV shall not then be satisfied, then, subject to the terms and conditions hereof, the L/C Issuer shall, on
the requested date, issue a Letter of Credit for the account of the
Borrower or the applicable Subsidiary or enter into the applicable amendment,
as the case may be, in each case in accordance with the L/C Issuer’s usual and
customary business practices. Immediately upon the issuance of each Letter of
Credit, each Revolving Credit Lender shall be deemed to, and hereby irrevocably
and unconditionally agrees to, purchase from the L/C Issuer a risk
participation in such Letter of Credit in an amount equal to the product of
such Revolving Credit Lender’s Applicable Revolving Credit Percentage times
the amount of such Letter of Credit.

 

(iii)          If the Borrower so requests in any applicable Letter of
Credit Application, the L/C Issuer may, in its sole and absolute discretion,
agree to issue a Letter of Credit that has automatic extension provisions
(each, an “Auto-Extension Letter of Credit”); provided that any
such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any
such extension at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “NonExtension Notice Date”)
in each such twelve-month period to be agreed upon at the time such Letter of
Credit is issued. Once an Auto-Extension Letter of Credit has been issued, the
Lenders shall be deemed to have authorized (but may not require) the L/C Issuer
to permit the extension of such Letter of Credit at any time to an expiry date
not later than the Letter of Credit Expiration Date; provided, however,
that the L/C Issuer shall not permit any such extension if (A) the L/C Issuer
has determined that it would not be permitted, or would have no obligation at
such

 

42

 

time to issue
such Letter of Credit in its revised form (as extended) under the terms hereof
(by reason of the provisions of clauses (ii) or (iii) of Section 2.03(a)
or otherwise), or (B) it has received notice (which may be by telephone or in
writing) on or before the day that is five Business Days before the
NonExtension Notice Date (1) from the Administrative Agent that the Required
Revolving Lenders have elected not to permit such extension or (2) from the
Administrative Agent, any Revolving Credit Lender or the Borrower that one or
more of the applicable conditions specified in Section 4.02 is not then
satisfied, and in each such case directing the L/C Issuer not to permit such
extension.

 

(iv)          If the Borrower so requests in any applicable Letter of
Credit Application, the L/C Issuer may, in its sole and absolute
discretion, agree to issue a Letter of Credit that permits the automatic
reinstatement of all or a portion of the stated amount thereof after any
drawing thereunder (each, an “Auto-Reinstatement Letter of Credit”).
Unless. otherwise directed by the L/C Issuer, the Borrower shall not be
required to make a specific request to the L/C Issuer to permit such
reinstatement Once an Auto-Reinstatement Letter of Credit has been issued,
except as provided in the following sentence, the Lenders shall be deemed to
have authorized (but may not require) the L/C Issuer to reinstate all or a
portion of the stated amount thereof in accordance with the provisions of such
Letter of Credit. Notwithstanding the foregoing, if such Auto-Reinstatement Letter of Credit permits the
L/C Issuer to decline to reinstate all or any portion of the stated
amount thereof after a drawing thereunder by giving notice of such
non-reinstatement within a specified number of days after such drawing (the “Non-Reinstatement
Deadline”), the L/C Issuer shall not permit such reinstatement if it has
received a notice (which may be by telephone or in writing) on or before the
day that is five Business Days before the Non-Reinstatement Deadline (A) from
the Administrative Agent that the Required Revolving Lenders have elected not
to permit such reinstatement or (B) from the Administrative Agent, any Lender
or the Borrower that one or more of the applicable conditions specified in Section
4.02 is not then satisfied (treating such reinstatement as an L/C Credit
Extension for purposes of this clause) and, in each case, directing the L/C Issuer not to permit such
reinstatement.

 

(v)           Promptly after its
delivery of any Letter of Credit or any amendment to a Letter of Credit to an
advising bank with respect thereto or to the beneficiary thereof, the L/C
Issuer will also deliver to the Borrower and the Administrative Agent a true
and complete copy of such Letter of
Credit or amendment.

 

(c)           Drawings and
Reimbursements: Funding of Participations.

 

(i)            Upon receipt from the
beneficiary of any Letter of Credit of any notice of a drawing under such
Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof. Not later than 12:00 p.m. on the Business Day
following the date of any payment by
the L/C Issuer under a Letter of Credit (each such date, an “Honor
Date”), the Borrower shall reimburse the L/C Issuer through the
Administrative Agent in an amount equal to the amount of such drawing. If the
Borrower fails to so reimburse the L/C Issuer by such time, the Administrative
Agent shall promptly notify each Revolving Credit Lender of the Honor Date, the
amount of the unreimbursed

 

43

 

drawing (the “Unreimbursed
Amount”), and the amount of such Revolving Credit Lender’s Applicable
Revolving Credit Percentage thereof. In such event, the Borrower shall be
deemed to have requested a Revolving Credit Borrowing of Base Rate Loans to be
disbursed on the Honor Date in an amount equal to the Unreimbursed Amount,
without regard to the minimum and multiples specified in Section 2.02
for the principal amount of Base Rate Loans, but subject to the amount of the
unutilized portion of the Revolving Credit Commitments and the conditions set
forth in Section 4.02 (other than the delivery of a Committed Loan
Notice). Any notice given by the L/C Issuer or the Administrative Agent
pursuant to this Section 2.03 (c)(i) may be given by telephone if
immediately confirmed in writing; provided that the lack of such an
immediate confirmation shall not affect the conclusiveness or binding effect of
such notice.

 

(ii)           Each Revolving Credit
Lender shall upon any notice pursuant to, Section 2.03(c)(i) make funds
available to the Administrative Agent for the account of the L/C Issuer at the
Administrative Agent’s Office in an amount equal to its Applicable. Revolving
Credit Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the
Business Day specified in such notice by the Administrative Agent, whereupon,
subject to the provisions of Section 2.03(c)(iii), each Revolving Credit
Lender that so makes funds available shall be deemed to have made a Base Rate
Loan to the Borrower in such amount. The Administrative Agent shall remit the
funds so received to the L/C Issuer.

 

(iii)          With respect to any
Unreimbursed Amount that is not fully refinanced by a Revolving Credit
Borrowing of Base Rate Loans because the conditions set forth in Section
4.02 cannot be satisfied or for any other reason, the Borrower shall be
deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of
the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be
due and payable on demand (together with interest) and shall bear interest at
the Default Rate. In such event, each Revolving Credit Lender’s payment to the
Administrative Agent for the account of the L/C Issuer pursuant to Section
2.03(c)(ii) shall be deemed payment in respect of its participation in such
L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation
obligation under this Section 2.03.

 

(iv)          Until each Revolving
Credit Lender funds its Revolving Credit Loan or L/C Advance pursuant to this Section
2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter
of Credit, interest in respect of such Lender’s Applicable Revolving Credit
Percentage of such amount shall be solely for the account of the L/C Issuer.            .

 

(v)           Each Revolving Credit
Lender’s obligation to make Revolving Credit Loans or L/C Advances to reimburse
the L/C Issuer for amounts drawn under Letters of. Credit, as contemplated by
this Section 2.03(c), shall be absolute and unconditional and shall not
be affected by any circumstance, including (A) any setoff, counterclaim,
recoupment, defense or other right which such Lender may have against the L/C
Issuer, the Borrower or any other Person for any reason whatsoever; (B) the
occurrence or continuance of a Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided, however,
that each Revolving Credit Lender’s

 

44

 

obligation to
make Revolving Credit Loans pursuant to this Section 2.03(c) is subject
to the conditions set forth in Section 4.02 (other than delivery by the
Borrower of a Committed Loan Notice). No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Borrower to reimburse the L/C
Issuer for the amount of any payment made by the L/C Is suer under any Letter of Credit, together
with interest as provided herein.

 

(vi)          If any Revolving Credit
Lender fails to make available to the Administrative Agent for the account of
the L/C Issuer any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.03(c) by the time specified in Section
2.03(c)(ii), the L/C Issuer shall be entitled to recover from such Lender
(acting through the Administrative Agent), on demand, such amount with interest
thereon for the period from the date
such payment is required to the date on which such payment is immediately
available to the L/C Issuer at a rate per annum equal to the greater of
the Federal Funds Rate and a rate determined by the L/C Issuer in accordance
with banking industry rules on interbank compensation, plus any administrative,
processing or similar fees customarily charged by the L/C Issuer in connection
with the foregoing. If such Lender pays such amount, the principal amount so paid
shall constitute such Lender’s Loan included in the relevant Borrowing or L/C
Advance in respect of the relevant L/C Borrowing, as the case may be. A
certificate of the L/C Issuer submitted to any Revolving Credit Lender (through
the Administrative Agent) with respect to any amounts owing under this Section
2.03(c)(vi) shall be conclusive absent manifest error.

 

(d)           Repayment of Participations.

 

(i)            At any time after the L/C Issuer has made a
payment under any Letter of Credit
and has received from any Revolving Credit Lender such Lender’s L/C Advance in
respect of such payment in accordance with Section 2.03(c), if the
Administrative Agent receives for the
account of the L/C Is suer any payment in respect of the related Unreimbursed
Amount or interest thereon (whether directly from the Borrower or otherwise,
including proceeds of cash collateral applied thereto by the Administrative
Agent), the Administrative Agent will distribute to such Lender its Applicable
Revolving Credit Percentage thereof in the same funds as those received by the
Administrative Agent.

 

(ii)           If any payment received
by the Administrative Agent for the account of the L/C Issuer pursuant to Section
2.03(c)(i) is required to be returned under any of the circumstances
described in Section 11.05 (including pursuant to any settlement entered
into by the’L/C Issuer in its discretion), each Revolving Credit Lender shall
pay to the Administrative Agent for the account of the L/C Issuer its
Applicable Revolving Credit Percentage thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date
such amount is returned by such Lender, at a rate per annum equal to the
Federal Funds Rate from time to time in effect. The obligations of the Lenders
under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

 

45

 

(e)           Obligations Absolute.
The obligation of the Borrower to reimburse the L/C Is suer for each drawing under each Letter of Credit and to repay
each L/C Borrowing shall be absolute, unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this Agreement under all
circumstances, including the following:

 

(i)            any lack of validity
or enforceability of such Letter of Credit, this Agreement, or any other Loan
Document;

 

(ii)           the existence of any
claim, counterclaim, setoff, defense or other right that’ the Borrower or any
Subsidiary may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the L/C Issuer or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by such
Letter of Credit or any agreement or instrument relating thereto, or any
unrelated transaction;

 

(iii)          any draft, demand,
certificate or other document presented under such Letter of Credit proving to
be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under such Letter of Credit;

 

(iv)          any
payment by the L/C Issuer under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such
Letter of Credit; except to the extent such payment has been made as the result
of the L/C Issuer’s gross negligence or willful misconduct as determined in the
final, non-appealable judgment of a court of competent jurisdiction; or any
payment made by the L/C Issuer under such Letter of Credit to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for
the benefit of creditors, liquidator, receiver or other representative of or
successor to any beneficiary or any transferee of such Letter of Credit,
including any arising in connection with any proceeding under any Debtor Relief
Law; or

 

(v)           any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute
a defense available to, or a discharge of, the Borrower or any of its
Subsidiaries, other than as the result of the L/C Issuer’s gross negligence or
willful misconduct as determined in the final, non-appealable judgment of a
court of competent jurisdiction.

 

The Borrower
shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance
with the Borrower’s instructions or other irregularity, the Borrower will
immediately notify the L/C Issuer. The Borrower shall be conclusively deemed to
have waived any such claim against the L/C Issuer and its correspondents unless
such notice is given as aforesaid.

 

(f)            Role of L/C Issuer.
Each Lender and the Borrower agrees that, in paying any drawing under a Letter
of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly
required by the

 

46

Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the
L/C Issuer, the Administrative Agent, any of their respective Related Parties
nor any correspondent, participant or assignee of the L/C Issuer shall be
liable to any Lender for (i) any action taken or omitted in connection herewith
at the request or with the approval of the Revolving Credit Lenders or the
Required Revolving Lenders, as applicable; (ii) any action taken or omitted in
the absence of bad faith, gross negligence or willful misconduct; or (iii) the
due execution, effectiveness, validity or enforceability of any document or
instrument related to anyLetter of Credit or Issuer Document. The Borrower
hereby assumes all risks of the acts or omissions of any beneficiary or
transferee with respect to its use of any Letter of Credit; provided, however,
that this assumption is not intended to, and shall not, preclude the Borrower’s
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the L/C Issuer shall be liable or
responsible for any of the matters described in clauses (i) through (v) of Section
2.03(e); provided, however, that anything in such clauses to
the contrary notwithstanding, the Borrower may have a claim against the L/C
Issuer, and the L/C Issuer may be liable to the Borrower, to the  extent,
but only to the extent, of any direct, as opposed to consequential or
exemplary, damages suffered by the Borrower which the Borrower proves were
caused by the L/C Issuer’s bad faith, willful misconduct or gross negligence or
the L/C Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing, the L/C Issuer may accept
documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary, and the L/C Is suer shall
not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole orin
part, which may prove to be. invalid or ineffective for any reason.

 

(g)           Cash Collateral. Upon the
request of the Administrative Agent, (i) if the. L/C Issuer has honored any
full or partial drawing request under any Letter of Credit and such drawing has
resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration
Date, any L/C Obligation for any reason remains outstanding, the Borrower
shall, ineach
case, immediately Cash Collateralize the then Outstanding Amount of all
L/C Obligations. Sections 2.05 and 8.02(c) set forth certain
additional requirements to deliver cash collateral hereunder. For purposes of
this Section 2.03, Section 2.05 and Section 8.02(c), “Cash
Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as
collateral for the L/C Obligations, cash or deposit account balances pursuant
to documentation in form and substance satisfactory to the Administrative Agent
and the L/C Issuer (which documents are hereby consented to by the Lenders).
Derivatives of such term have corresponding meanings. The Borrower hereby
grants to the Administrative Agent, for the benefit of the L/C Issuer and the
Lenders, a security interest in all such cash, deposit accounts and all
balances therein and all proceeds of the foregoing. Cash collateral shall be
maintained in blocked, non-interest bearing deposit accounts at Bank of
America. If at any time the Administrative Agent determines that any funds held
as cash collateral are subject to any right or claim of any Person other than
the Administrative Agent or that the total amount of such

 

47

 

funds is less
than the aggregate Outstanding Amount of all L/C Obligations, the Borrower
will, forthwith upon demand by the Administrative Agent, pay to the
Administrative Agent, as additional funds to be deposited as cash collateral,
an amount equal to the excess of (x) such aggregate Outstanding Amount over (y)
the total amount of funds, if any, then held as cash collateral that the
Administrative Agent determines to be free and clear of any such right and
claim. Upon the drawing of any Letterof Credit for which funds are on deposit
as cash collateral, such funds shall be applied, to the extent permitted under
applicable Laws, to reimburse the L/C Issuer;

 

(h)           Applicability of ISP and UCP. Unless
otherwise expresslyagreed by the L/C Issuer and the Borrower when a Letter of
Credit is issued, (i) the rules of the ISP shall apply to each standby Letter
of Credit, and (ii) the rules of the Unifoim Customs and Practice for
Documentary Credits, as most recently published by the International Chamber of
Commerce at the time of issuance shall apply to each commercial Letter of
Credit.

 

(i)            Letter of Credit Fees. The
Borrower shall pay to the Administrative Agent for the account of each
Revolving Credit Lender in accordance with its Applicable Revolving Credit
Percentage a Letter of Credit fee (the “Letter of Credit Fee”) for each
Letter of Credit equal to the Applicable Rate for Revolving Credit Loans that
are Eurodollar Rate Loans times the daily amount available to be drawn
under such Letter of Credit. For purposes of computing the daily amount
available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.06. Letter of
Credit Fees shall be (i) due and payable on the first Business Day after the
end of each March, June, September and December, commencing with the first such
date to occur after the issuance of such Letter of Credit, on the Letter of
Credit Expiration Date and thereafter on demand and (ii) computed on a.
quarterly basis in arrears. If there is any change in the Applicable Rate
during any quarter, the daily amount available to be drawn under each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for
each period during such quarter that such Applicable Rate was in effect; provided,
however, if any adjustment becomes effective pursuant to clause (A) of
the last paragraph of the definition of “Applicable Rate”, the Letter of Credit
Fee shall be recalculated upon the first delivery of financial statements
pursuant to Sections 6.01(a) or 6.01(b) after the delivery of the
officer’s certificate referred to in such clause and if such recalculation
indicates that the Consolidated Leverage Ratio on the last day of such fiscal
quarter was different from that reported in such officer’s certificate, (I) the
“Applicable Rate” shall be readjusted
based on the recalculated Consolidated Leverage Ratio and (II) if the
recalculated Consolidated Leverage Ratio is higher than that reported on the
officer’s certificate and results in a higher Applicable Rate, the Borrower
shall immediately pay an amount equal to the additional fees for each Letter of
Credit that would have accrued thereto based on such higher Applicable Rate, which amounts shall be paid (y)
immediately, to the extent that any payment date to which such fees related
have occurred and (z) otherwise, on the payment date to which such amounts
relate. Notwithstanding anything to the contrary contained herein, upon the
request of the Required Revolving Lenders, while any Event of Default exists,
all Letter of Credit Fees shall accrue at the Default Rate.

 

(j)            Fronting Fee and Documentary and Processing
Charges Payable to L/C Issuer. The Borrower shall pay to the Lender (i) a
Letter of Credit fee for each commercial

 

48

 

Letter of
Credit equal to 0.125% per annum times the actual daily maximum amount
available to drawn under each such Letter of Credit, (ii) with respect to any
amendment of a commercial Letter of Credit increasing the amount of such Letter
of Credit, at a rate equal to 0.125% computed on the amount of such increase,
and payable upon the effectiveness of such amendment, and (iii) a Letter of
Credit fee for each standby Letter of Credit at the rate per annum equal to
0.125%, computed on the daily amount available to be drawn under such Letter of
Credit on a quarterly basis in arrears. Such fronting fee shall be due and
payable on the tenth Business Day after the end of each March, June, September
and December in respect of the most recently-ended quarterly period (or portion
thereof, in the case of the first payment), commencing with the first such date
to occur after the issuance of such Letter of Credit, on the Letter of Credit
Expiration Date and thereafter on demand. For purposes of computing the daily
amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.06. In
addition, the Borrower shall pay directly to the L/C Issuer for its own account
the customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of the L/C Issuer relating to letters of
credit as from time to time in effect. Such customary fees and standard costs
and charges are due and
payable on demand and are nonrefundable.

 

(k)           Conflict with Issuer Documents. In the event
of any conflict between the terms hereof and the terms of any Issuer Document,
the terms hereof shall control.

 

(1)           Letters of Credit Issued for Subsidiaries.
Notwithstanding that a Letter of Credit issued or outstanding hereunder is in
support of any obligations of, or is for the account of, a Subsidiary, the
Borrower shall be obligated to reimburse the L/C Issuer hereunder for any and
all drawings under such Letter of Credit. The Borrower hereby acknowledges that
the issuance of Letters of Credit for the account of Subsidiaries inures to the
benefit of the Borrower, and that the Borrower’s business derives substantial
benefits from the businesses of such Subsidiaries.

 

2.04.       Swing Line Loans.

 

(a)           The Swing Line. Subject to the terms and conditions set forth
herein, the Swing Line Lender agrees, in reliance upon the agreements of the
other Lenders set forth in this Section 2.04, to make loans (each such
loan, a “Swing Line Loan”) to the Borrower from time to time on any
Business Day during the Availability Period in an aggregate amount not to
exceed at any time outstanding the
amouiit of the Swing Line Sublimit, notwithstanding the fact that such Swing
Line Loans, when aggregated with the Applicable Revolving Credit Percentage of
the Outstanding Amount of Revolving Credit Loans and L/C Obligations of the
Lender acting as Swing Line Lender, may exceed the amount of such Lender’s
Revolving Credit Commitment; provided, however, that after giving
effect to any Swing Line Loan, (i) the Total Revolving Credit Outstandings
shall not exceed the Revolving Credit Facility at such time, and (ii) the
aggregate Outstanding Amount of the Revolving Credit Loans of any Revolving
Credit Lender at such time, plus such Revolving Credit Lender’s Applicable
Revolving Credit Percentage of the Outstanding Amount of all L/C Obligations at
such time,plus such Revolving
Credit Lender’s Applicable Revolving Credit Percentage of the Outstanding
Amount of all Swing Line Loans at such time shall not exceed such Lender’s
Revolving Credit Commitment, and provided  further

 

49

 

that the Borrower shall not
use the proceeds of any Swing Line Loan to refinance any outstanding
Swing Line Loan. Within the foregoing limits, and subject to the other terms
and conditions hereof, the Borrower may borrow under this Section 2.04,
prepay under Section 2.05, and reborrow under this Section 2.04.
Each Swing Line Loan shall bear interest only at a rate based on the Base Rate.
Immediately upon the making of a Swing Line Loan, each Revolving Credit Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the Swing Line Lender a risk participation in such Swing Line
Loan in an amount equal to the product of such Revolving Credit Lender’s
Applicable Revolving Credit Percentage times the amount of such Swing
Line Loan.

 

(b)           Borrowing Procedures. Each Swing Line
Borrowing shall be made upon the Borrower’s irrevocable notice to the Swing Line Lender and the
Administrative Agent, which may be given by telephone. Each such notice must be
received by the Swing Line Lender and the Administrative Agent not later than
1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to
be borrowed, which shall be a minimum of $100,000, and (ii) the requested
borrowing date, which shall be a Business Day. Each such telephonic notice must
be confirmed promptly by delivery to the Swing Line Lender and the
Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by a Responsible Officer of the Borrower. Promptly after
receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the
Swing Line Lender will confirm with the Administrative Agent (by telephone or
in writing) that the Administrative Agent has also received such Swing Line
Loan Notice and, if not, the Swing Line Lender will notify the Administrative
Agent (by telephone or in writing) of the contents thereof. Unless the Swing
Line Lender has received notice (by telephone or in writing) from the
Administrative Agent (including at the request of any Revolving Credit Lender)
prior to 2:00 p.m. on the date of the proposed Swing Line Borrowing (A)
directing the Swing Line Lender not to make such Swing Line Loan as a result of
the limitations set forth in the proviso to the first sentence of Section 2 04(a),
or (B) that one or more of the applicable conditions specified in Article IV
is not then satisfied,then, subject to the terms and conditions hereof, the
Swing Line Lender will, not later than 3:00 p.m. on the borrowing date
specified in such Swing Line Loan Notice, make the amount of its Swing Line
Loan available to the Borrower at its office by crediting the account of the
Borrower on the books of the Swing Line Lender
in immediately available funds.

 

(c)           Refinancing of Swing Line Loans.

 

(i)            The Swing Line
Lender at any time in its sole and absolute discretion may request, on behalf
of the Borrower (which hereby irrevocably authorizes the Swing Line Lender to
so request on its behalf), that each Revolving Credit Lender make a Base Rate
Loan in an amount equal to such Lender’s Applicable Revolving Credit Percentage
of the amount of Swing Line Loans then outstanding. Such request shall be made
in writing (which written request shall be deemed to be a Committed Loan Notice
for purposes hereof) and in accordance with the requirements of Section 2.02,
without regard to the minimum and multiples specified therein for the principal
amount of Base Rate Loans, but subject to the unutilized portion of the
Revolving Credit Facility and the conditions set forth in Section 4.02.
The Swing Line Lender shall furnish the Borrower with a copy of the applicable
Committed Loan Notice promptly after delivering such notice to the

 

50

 

Administrative
Agent. Each Revolving Credit Lender shall make an amount equal to its
Applicable Revolving Credit Percentage of the amount specified in such
Committed Loan Notice available to the Administrative Agent in immediately
available funds for the account of the Swing Line Lender at the Administrative
Agent’s Office not later than 2:00 p.m. on the day specified in such Committed
Loan Notice, whereupon, subject to Section 2.04(c)(ii), each RevolvingCredit Lender that so
makes funds available shall be deemed to have made a Base Rate Loan to the
Borrower in such amount. The Administrative Agent shall remit the funds so received
to the Swing Line Lender.

 

(ii)           If for any reason any Swing
Line Loan cannot be refinanced by such a Revolving Credit Borrowing in
accordance with Section 2.04(c)(i), the request for Base Rate Loans
submitted by the Swing Line Lender as set forth herein shall be deemed to be a
request by the Swing Line Lender that each of the Revolving Credit Lenders fund
its risk participation in the relevant Swing Line Loan and each Revolving
Credit Lender’s payment to the Administrative Agent for the account of the
Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment
in respect of such participation.

 

(iii)          If any Revolving
Credit Lender fails to make available to the Administrative Agent for the
account of the Swing Line Lender any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.04(c) by the
time specified in Section 2.04(c)(i), the Swing Line Lender shall be
entitled to recover from such Lender (acting through the Administrative Agent),
on demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to the Swing Line Lender at a rate per annum equal to the greater of the
Federal Funds Rate and a rate determined by the Swing Line Lender in accordance
with banking industry rules on interbank compensation, plus any administrative,
processing or similar fees customarily charged by the Swing Line Lender in
connection with the foregoing. If such Lender pays such amount, the principal
amount so paid shall constitute such Lender’s Loan included in the relevant
Borrowing or funded participation in the relevant Swing Line Loan, as the case
may be. A certificate of the Swing Line Lender submitted to any Lender (through
the Administrative Agent) with respect to any amounts owing under this clause
(iii) shall be conclusive absent manifest error.

 

(iv)          Each Revolving Credit Lender’s
obligation to make Revolving Credit Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.04(c) shall, be absolute and unconditional and
shall not be affected by any circumstance, including (A) any setoff,
counterclaim, recoupment, defense or other right which such Lender may have
against the Swing Line Lender, the Borrower or any other Person for any reason
whatsoever, (B) the occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Revolving Credit Lender’s obligation
to make Revolving Credit Loans pursuant to this Section 2.04(c) is
subject to the conditions set forth in Section 4.02. No such funding of
risk participations shall relieve or otherwise impair the obligation of the
Borrower to repay Swing Line Loans, together with interest as provided herein.

 

51

 

(d)           Repayment of Participations.

 

(i)            At any time after
any Revolving Credit Lender has purchased and funded a risk participation in a
Swing Line Loan, if the Swing Line Lender receives any payment on account of
such Swing Line Loan, the Swing Line Lender will distribute to such Revolving
Credit Lender its Applicable Revolving Credit Percentage thereof in the same
funds as those received by the Swing Line Lender.

 

(ii)           If any payment received by the
Swing Line Lender in respect of principal or interest on any Swing .Line Loan is required to be returned by the
Swing Line Lender under any of the circumstances described in Section
11.05 (including pursuant to any settlement entered into by the Swing Line
Lender in its discretion), each Revolving Credit Lender shall pay to the Swing
Line Lender its Applicable Revolving Credit Percentage thereof on demand of the
Administrative Agent, plus interest
thereon from the date of such
demand to the date such amount is returned, at a rate per annum, equal to the Federal
Funds Rate. The Administrative Agent will make such demand upon the request of
the Swing Line Lender. The obligations of the Lenders under this clause shall
survive the payment in full of the
Obligations and the termination of this Agreement.

 

(e)           Interest for Account of Swing Line Lender.
The Swing’Line Lender shall be responsible for invoicing the Borrower for
interest on the Swing Line Loans. Until each Revolving Credit Lender funds its
Base Rate Loan or risk participation pursuant to this Section 2.04 to
refinance such Revolving Credit Lender’s Applicable Revolving Credit Percentage
of any Swing Line Loan, interest in respect of such Applicable Revolving Credit
Percentage shall be solely for the account of the Swing Line Lender.

 

(f)            Payments Directly to Swing Line Lender. The
Borrower shall make all payments of principal and intcrest in respect of the
Swing Line Loans directly to the Swing Line Lender.

 

2.05.       Prepayments.

 

(a)           Optional.

 

(i)            The Borrower may, upon notice
to the Administrative Agent, at any time or from time to time voluntarily prepay
Term B Loans and Revolving Credit Loans in whole or in part without premium or
penalty; provided that (A) such notice must be received by the
Administrative Agent not later than 11:00 a.m. (1) three Business Days prior to
any date of prepayment of Eurodollar Rate Loans and (2) on the date of
prepayment of Base Rate Loans; (B) any prepayment of Eurodollar Rate Loans
shall be in a principal amount of $2,000,000 or a whole multiple of $1,000,000
in excess thereof; and (C) any prepayment of Base Rate Loans shall be in a
principal amount of $500,000 or a whole multiple of $100,000 in excess thereof
or, in each case, if less, the entire principal amount thereof then
outstanding. Each such notice shall specify the date and amount of such
prepayment and the Type(s) of Loans to be prepaid and, if Eurodollar Rate Loans
are to be prepaid, the Interest Period(s) of such Loans. The Administrative
Agent will promptly notify each Lender of its receipt of each such notice, and
of the

 

52

 

amount of such
Lender’s ratable portion of such prepayment (based on such Lender’s Applicable
Percentage in respect of the relevant Facility). If such notice is given by the
Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified
therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all
accrued interest on the amount prepaid, together with any additional amounts
required pursuant to Section 3.05.  Each prepayment of the outstanding Term B
Loans pursuant to this Section 2.05(a) shall be applied first to the next four scheduled principal repayment
installments thereof and thereafter to the remaining scheduled principal
repayment installments on a pro rata basis, and each such prepayment shall be
paid to the Lenders in accordance with their respective Applicable Percentages
in respect of each of the relevant Facilities.

 

(ii)           The Borrower may, upon notice
to the Swing Line Lender (with a copy to the Administrative Agent), at any time
or from time to time, voluntarily prepay Swing Line Loans in whole or in part
without premium or penalty; provided that (A) such notice must be
received by the Swing Line Lender and the Administrative Agent not later than
1:00 p.m. on the date of the prepayment, and (B) any such prepayment shall be
in a minimum principal amount of $100,000. Each such notice shall specify the
date and amount of such prepayment. If such notice is given by the Borrower,
the Borrower shall make such prepayment and the payment amount specified in
such notice shall be due and payable on the date specified therein.

 

(b)           Mandatory.

 

(i)            No later than five Business
Days following the delivery by the Borrower of its annual audited financial
reports required pursuant to Section 6.01(a) and the related Compliance
Certificate has been delivered pursuant to Section 6.02(b), the Borrower
shall deliver to the Administrative Agent a calculation of the Excess Cash Flow
(without giving effect to prepayments of Second Lien Loans pursuant to Section
7.15(d)) for the fiscal year last ended and, no later than ten Business Days
following the delivery of such calculation, the Borrower shall prepay an
aggregate principal amount of Loans equal to the excess (if any) of (A) 50% (or
if the Consolidated Leverage Ratio as set forth in such Compliance Certificates
is less than 4.5:1.0, 25% or if the Consolidated Leverage Ratio as set forth in
such Compliance Certificate is less than 3.5:1.0, 0%) of Excess Cash Flow
(without giving effect to prepayments of Second Lien Loans pursuant to Section
7.15(d)) for the fiscal year covered by such financial statements over (B)
the aggregate principal amount of Term B Loans prepaid pursuant to Section
2.05(a)(i) during such fiscal year (such prepayments to be applied as set
forth in clauses (v) and (vii) below).

 

(ii)           If Holdings or any of its
Subsidiaries Disposes of any property (other than any Disposition of any
property permitted by Section 7.05(a) through (i)) which results
in  the realization by such Person of Net Cash Proceeds, the Borrower
shall, (i) no later than one Business Day following the receipt of any Net Cash
Proceeds by Holdings or such Subsidiary, the Borrower shall deliver to the
Administrative Agent a calculation of the amount of such Net Cash Proceeds and
(ii) on the date that is 10 Business Days following the receipt of such Net
Cash Proceeds prepay an aggregate principal amount of

 

53

 

Loans equal to
100% of such Net Cash Proceeds immediately upon receipt thereof by such Person
(such prepayments to be applied as set forth in clauses (v) and (vii) below); provided,
however, that, with respect to any Net Cash Proceeds realized under a
Disposition described in this Section 2.05(b)(ii), at the election of
the Borrower (as notified by the Borrower to the Administrative Agent within
ten Business Days of such Disposition), and so long as no Default or Event of
Default pursuant to Sections 8.01(a), (f) or (g )shall
have occurred and be continuing or any Event of Default (other than pursuant to Sections 8.01(a), (f)
or (g)) shall have occurred and be continuing for 10 calendar
days, Holdings or such Subsidiary may reinvest all or any portion of such Net
Cash Proceeds in operating assets so long as within 15 months after the receipt
of such Net Cash Proceeds, such purchase shall have been consummated or if
Holdings or such Subsidiary enters into a definitive agreement to reinvest such
Net Cash Proceeds during such 15 month
period, within 18 months after the receipt of such Net Cash Proceeds (as certified
by the Borrower in writing to the Administrative Agent); and provided  further,
however, that any Net Cash Proceeds not subject to such definitive
agreement or so reinvested shall be immediately applied to the prepayment of
the Loans as set forth in this Section
2.05(b)(ii).

 

(iii)          Upon the incurrence or issuance
by Holdings or any of its Subsidiaries of any Indebtedness (other than
Indebtedness expressly permitted to be incurred or issued pursuant to Section
7.02), the Borrower shall, concurrently with the receipt of any Net Cash
Proceeds by Holdings, the Borrower or any Subsidiary, deliver to the Administrative
Agent a calculation of the amount of such Net Cash Proceeds, and no later than
ten Business Days following the delivery of such calculation, prepay an
aggregate principal amount of Loans equal to 100% of all Net Cash Proceeds
received therefrom by Holdings or such Subsidiary (such prepayments to be
applied as set forth in clauses (v) and (vii) below).

 

(iv)          Upon any
Extraordinary Receipt received by or paid to or for the account of Holdings or
any of its Subsidiaries, and not otherwise included in clause (ii), (iii) or
(iv) of this Section 2.05(b), the Borrower shall, concurrently with the
receipt of any Net Cash Proceeds by Holdings, the Borrower or any Subsidiary,
deliver to the Administrative Agent a calculation of the amount of such Net Cash
Proceeds, and no later than ten Business Days following the delivery of such
calculation, the Borrower shall prepay an aggregate principal amount of Loans
equal to 100% of all Net Cash Proceeds received therefrom by Holdings or such
Subsidiary (such prepayments to be applied as set forth in clauses (v) and
(vii) below); provided, however, that at the election of the
Borrower (as notified by the Borrower to the Administrative Agent within ten
Business Days of the date of receipt of such Extraordinary Receipt), Holdings
or such Subsidiary may reinvest all or any portion of such Net Cash Proceeds in
operating assets so long as within 15 months after the receipt of such Net Cash
Proceeds such purchase shall have been consummated or if Holdings or any such
Subsidiary enters into a definitive agreement to reinvest such Net Cash
Proceeds within such 15 month period within 18 months of the receipt of such
Net Cash Proceeds; and provided  further, however, that any
Net Cash Proceeds not so applied shall be immediately applied to the prepayment
of the Loans as set forth in this Section 2.05(b)(iv).

 

54

 

(v)           Each prepayment of Loans
pursuant to the foregoing provisions of this Section 2.05(b) shall be
applied,first, to the next four principal
repayment installments in direct
order of maturity ratably among the Term B Lenders and the Term B Borrowings and
then to the remaining principal repayments installments thereof on a pro rata
basis as among the Term B Lenders and the Term B Borrowings and, following any
further prepayments of the Term B Facility required pursuant to Section
2.05(c), second, to the repayment of the
Second Lien Loans in accordance with the terms of the Second Lien Credit
Agreement and, following any further prepayments of the Second Lien Loans
required pursuant to Section 2.05(c) or the Second Lien Credit
Agreement, third to the Revolving Credit Facility
in the manner set forth in clause (vii) of this Section 2.05(b) (but
without any permanent reduction of the Revolving Credit Commitments).

 

(vi)          If for any reason the Total
Revolving Credit Outstandings at any time exceed the Revolving Credit Facility
at such time, the Borrower shall immediately prepay Revolving Credit Loans,
Swing Line Loans and L/C Borrowings and/or Cash Collateralize the L/C
Obligations (other than the L/C Borrowings) in an aggregate amount equal to
such excess.

 

(vii)         Prepayments of the
Revolving Credit Facility made pursuant to this Section 2.05(b), first,
shall be applied ratably to the L/C Borrowings and the Swing Line Loans,
(together with any accrued and unpaid interest or other amounts owing in
respect thereof and termination payments owed under any interest rate Swap
Contract as a result of such prepayment), second, shall be applied
ratably to the outstanding Revolving Credit Loans, (together with any accrued
and unpaid interest or other amounts owing in respect thereof and termination
payments owed under any interest rate Swap Contract as a result of such
prepayment), and, third, shall be used to Cash Collateralize the
remaining L/C Obligations; and, in the case of prepayments of the Revolving
Credit Facility required pursuant to clause (i), (ii), (iii) or (iv) of this Section
2.05(b), the amount remaining, if any, after the prepayment in full of all
L/C Borrowings, Swing Line Loans and Revolving Credit Loans outstanding at such
time and the Cash Collateralization of the remaining L/C Obligations in full
may be retained by the Borrower for use in the ordinary course of its business. Upon the drawing of any Letter
of Credit that has been Cash Collateralized, the funds held as cash
collateral shall be applied (without any further action by or notice to or from
the Borrower or any other Loan Party) to reimburse the L/C Issuer or the Revolving
Credit Lenders, as applicable.

 

(c)           Term B Opt-out. So long as any Term B Loans
remain outstanding, any Term B Lender may elect to decline the entire portion
of the prepayment of its Term B Loans pursuant to Section 2.05 (other
than an optional prepayment pursuant to clause (a) of Section 2.05
that has not been designated by the Borrower as being subject to this Section
2.05(c)) by delivery of a completed Notice of Election to the
Administrative Agent by telecopy at least five Business Days prior to the
applicable prepayment date, in which case the aggregate amount of the
prepayment that would have been applied to prepay Term B Loans but was so
declined shall be re-offered to those Term B Lenders under this Agreement who
have initially accepted such prepayment (such re-offer to be made to each such
Term B Lender based on the percentage which such Term B Lender’s Term B Loans
represents of the aggregate Term B Loans of all

 

55

 

such Term B
Lenders who have initially accepted such prepayment). In the event of such a
re-offer, the relevant Lenders may elect to decline in such Notice of Election
all of the amount of such prepayment that is re-offered to them, in which case
the aggregate amount of the prepayment that would have been applied to prepay
such Term B Loans pursuant to such re-offer but was so declined shall be
applied in the following order: first, to
prepay outstanding loans under the Second Lien Credit Agreement (subject to the
right, if any, of any holder of any such loans to decline such prepayment), second, if prepayment is declined by any lender under the
Second Lien Credit Agreement pursuant to the terms thereof, to repay the
Revolving Credit Facility in the manner set forth in clause (vii) of Section
2.05(b) and third the remainder, if any,
shall be returned to the Borrower. In the absence of delivery of a completed
Notice of Election with respect to any prepayment at least five Business Days
prior to the applicable prepayment date, such Lender shall automatically be
deemed to have accepted such prepayment and any re-offer in respect thereof.

 

2.06.       Termination or Reduction of Commitments.

 

(a)           Optional. The Borrower may,
upon notice to the Administrative Agent, terminate the Revolving Credit Facility,
the Letter of Credit Sublimit or the Swing Line Sublimit, or from time to time
permanently reduce the Revolving Credit Facility, the Letter of Credit Sublimit
or the Swing Line Sublimit; provided that (i) any such notice shall be
received by the Administrative Agent not later than 11:00 a.m. five Business
Days prior to the date of termination or reduction, (ii) any such partial
reduction shall be in an aggregate amount of $5,000,000 or any whole multiple
of $1,000,000 in excess thereof and (iii) the Borrower shall not terminate or
reduce (A) the Revolving Credit Facility if, after giving effect thereto and to
any concurrent
prepayments hereunder, the Total Revolving Credit Outstandings would exceed the
Revolving Credit Facility, (B) the Letter of Credit Sublimit if, after
giving effect thereto, the Outstanding Amount of L/C Obligations not fully Cash
Collateralized hereunder would exceed the Letter of Credit Sublimit, or (C) the
Swing Line Sublimit if, after giving effect thereto and to any concurrent prepayments
hereunder, the Outstanding Amount of Swing Line Loans would exceed the Letter
of Credit Sublimit.

 

(b)           Mandatory.

 

(i)            The aggregate Term B Commitments
shall be automatically and permanently reduced to zero on the date of the Term
B Borrowing.

 

(ii)           If after giving effect to any reduction or
termination of Revolving Credit Commitments under Section 2.06(a), the
Letter of Credit Sublimit or the Swing Line Sublimit exceeds the Revolving
Credit Facility at such time, the Letter of Credit Sublimit or the Swing Line
Sublimit, as the case may be, shall be automatically reduced by the amount of
such excess.

 

(c)           Application of Commitment Reductions: Payment of
Fees. The Administrative Agent will promptly notify the Lenders of any
termination or reduction of the Letter of Credit Sublimit, Swing Line Sublimit
or the Revolving Credit Commitment under this Section 2.06. Upon any
reduction of the Revolving Credit Commitments, the Revolving Credit Commitment
of each Revolving Credit Lender shall be reduced by such Lender’s Applicable

 

56

 

Revolving
Credit Percentage of such reduction amount. All fees in respect of the
Revolving Credit Facility accrued until the effective date of any termination
of the Revolving Credit Facility shall be paid on the effective date of such
termination.

 

2.07.       Repayment of Loans.

 

(a)           Term B Loans. The Borrower
shall repay to the Term B Lenders the aggregate principal amount of all Term B
Loans outstanding on the following dates in the respective amounts set forth
opposite such dates (which amounts shall be reduced as a result of the application of prepayments in accordance
with the order of priority set forth in Section 2.05):

 

	
  Date

  	
   

  	
  Amount

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  September 30, 2007

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  December 31, 2007

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  March 31, 2008

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  September 30, 2008

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  December 31, 2008

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  March 3l,2009

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  September 30, 2009

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  December 31, 2009

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  March 31, 2010

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  June 30, 2010

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  September 30, 2010

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  December 31, 2010

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  March 3l,2011

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  June 30, 2011

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  September 30, 2011

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  December 31, 2011

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  March 31, 2012

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  June 30, 2012

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  September 30, 2012

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  December 31, 2012

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  March 31, 2013

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  June 30, 2013

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  September 30, 2013

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  December 31, 2013

  	
   

  	
  $

  	
  750,000

  	
   

  

 

provided, however, that the final principal
repayment installment of the Term B Loans shall be repaid on the Maturity Date for the Term B
Facility and in any event shall be in an amount equal to the aggregate principal amount of all Term
B Loans outstanding on such date.

 

57

 

 

(b)           Revolving Credit Loans. The Borrower shall
repay to the Revolving Credit Lenders on the Maturity Date for the Revolving
Credit Facility the aggregate principal amount of all Revolving Credit Loans
outstanding on such date.

 

(c)           Swing Line Loans. The Borrower
shall repay each Swing Line Loan on the earlier to occur of (i) the date ten
Business Days after such Loan is made and (ii) the Maturity Date for the
Revolving Credit Facility.

 

2.08.       Interest.

 

(a)           Subject to the provisions of Section
2.08(b), (i) each Eurodollar Rate Loan under a Facility shall bear interest
on the outstanding principal amount thereof for each Interest Period at a rate
per annum equal to the Eurodollar Rate for such Interest Period plus the
Applicable Rate for such Facility; (ii) each Base Rate Loan under a
Facility shall bear interest on the outstanding principal amount thereof from
the applicable borrowing date at a rate per annum equal to the Base Rate plus
the Applicable Rate
for such Facility; and (iii) each Swing Line Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate for the Revolving Credit Facility.

 

(b)           (i) If any amount (other than
principal of any Loan) payable by the Borrower under any Loan Document is not
paid when due (without regard to any applicable grace periods); whether at
stated maturity, by acceleration or otherwise, then upon the request of the
Required Lenders such amount shall thereafter bear interest at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws.

 

(ii)           While any Event of Default pursuant to Sections
8.01(a), (f)  or (g) exists, the Borrower shall pay interest on the principal amount of all
outstanding Obligations hereunder at a fluctuating interest rate per annum at
all times equal to the Default Rate to the fullest extent permitted by
applicable Laws.

 

(iii)          Accrued and unpaid interest on past due amounts
(including interest on past due interest) shall be due and payable upon demand.

 

(c)           Interest on each Loan shall be the
obligation of the Borrower and shall be due and payable in arrears on each
Interest Payment Date applicable thereto and at such other times as may be
specified herein. Interest hereunder shall be due and payable in accordance
with the terms hereof before and after judgment, and before and after the
commencement of any proceeding
under any Debtor Relief Law.

 

2.09        Fees. In addition to certain fees
described in Sections 2.03(i) and (j):

 

(a)           Commitment Fee. The Borrower
shall pay to the Administrative Agent for the account of each Revolving Credit
Lender in accordance with its Applicable Revolving Credit Percentage, a
commitment fee equal to the Applicable Commitment Fee Percentage times
the actual daily amount by which the Revolving Credit Facility exceeds the sum
of (i) the Outstanding Amount of Revolving Credit Loans and (ii) the Outstanding
Amount of L/C

 

58

 

Obligations; provided,
however, that any commitment fee accrued with respect to any of the
Commitments of a Defaulting Lender during the period prior to the time such
Lender became a Defaulting Lender and unpaid at such time shall not be payable
by the Borrower so long as such Lender shall be a Defaulting Lender except to
the extent that such commitment fee shall otherwise have been due and payable
by the Borrower prior to such time; and provided  further that no
commitment fee shall accrue on any of the Commitments of a Defaulting Lender so
long as such Lender shall be a Defaulting Lender. The commitment fee shall
accrue at all times during the Availability Period, including at any time during
which one or more of the conditions in Article IV is not met, and shall
be due and payable quarterly in arrears on the last Business Day of each March,
June, September and December, commencing with the first such date to occur
after the Closing Date, and on the last day of the Availability Period for the
Revolving Credit Facility. The commitment fee shall be calculated quarterly in
arrears, and if there is any change in the Applicable Commitment Fee Percentage
during any quarter, the actual daily amount shall be computed and multiplied by
the Applicable Commitment Fee Percentage separately for each period during such
quarter that such Commitment Fee Percentage was in effect.

 

(b)           Other Fees. The Borrower shall
pay to the Arranger and the Administrative Agent for their own respective
accounts fees in the amounts and at the times specified in the Fee Letter. Such
fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 

2.10.       Computation of Interest and Fees.
All computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America’s “prime rate” shall be made on the basis of a
year of 365 or 366 days, as the case may be, and actual days elapsed. All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year). Interest shall
accrue on each Loan for the day on which the Loan is made, and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall, subject to Section 2.12(a), bear interest for
one day. Each determination by the Administrative Agent of an interest rate or
fee hereunder shall be conclusive and binding for all purposes, absent manifest
error.

 

2.11.       Evidence of Debt.

 

(a)           The Credit Extensions made by each Lender
shall be evidenced by one or more accounts or records maintained by such
Lender and by the Administrative Agent in the ordinary course of business. The
accounts or records maintained by the Administrative Agent and each Lender
shall be conclusive absent manifest error of the amount of the Credit
Extensions made by the Lenders to the Borrower and the interest and payments
thereon. Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict
between the accounts and records maintained by any Lender and the accountsand records
of the Administrative Agent in respect of such matters, the accounts and
records of the Administrative Agent shall control in the absence of manifest
error. Upon the request of any

 

59

 

Lender made
through the Administrative Agent, the Borrower shall execute and deliver to
such Lender (through the Administrative Agent) a Note, which shall evidence
such Lender’s Loans in addition to such accounts or records. Each Lender may
attach schedules to its Note and endorse thereon the date, Type (if
applicable), amount and maturity of its Loans and payments with respect
thereto.

 

(b)           In addition to the accounts and records referred to
in Section 2.11(a), each Lender and the Administrative Agent shall
maintain in accordance with its usual practice accounts or records evidencing
the purchases and sales by such Lender of participations in Letters of Credit
and Swing Line Loans. In the event of any conflict between the accounts and
records maintained by the Administrative Agent and the accounts and records of
any Lender in respect of such matters, the accounts and records of the Administrative
Agent shall control in the absence of manifest error.

 

2.12.       Payments Generally; Administrative
Agent’s Clawback.

 

(a)           General. All payments to be
made by the Borrower shall be made without condition or deduction for any
counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrower hereunder shall be made to the
Administrative Agent, for the account of the respective Lenders to which such
payment is owed, at the Administrative Agent’s Office in Dollars and in
immediately available funds not later than 2:00 p.m. on the date specified
herein. The Administrative Agent will promptly distribute to each Lender its
Applicable Percentage in respect of the relevant Facility (or other applicable
share as provided herein) of such payment in like funds as received by wire
transfer to such Lender’s Lending Office. All payments received by the
Administrative Agent after 2:00 p.m. shall be deemed received on the next
succeeding Business Day and any applicable interest or fee shall continue to
accrue. If any payment to be made by the Borrower shall come due on a day other
than a Business Day, payment shall be made on the next following Business Day,
and such extension of time shall be reflected on computing interest or fees, as
the case may be.

 

(b)           (i) Funding by Lenders;
Presumption by Administrative Agent. Unless the Administrative Agent shall
have received notice from a Lender prior to the proposed date of any Borrowing
of Eurodollar Rate Loans (or, in the case of any Borrowing of Base Rate Loans,
prior to 12:00 noon on the date of such Borrowing) that such Lender will not
make available to the Administrative Agent such Lender’s share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with Section 2.02 (or, in the case of a Borrowing of Base Rate
Loans, that such Lender has made such share  available in
accordance with and at the time required by Section 2.02) and may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount. In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then the applicable
Lender and the Borrower agrees to pay to the Administrative Agent forthwith on
demand such corresponding amount in immediately available funds with interest
thereon, for each day from and including the date such amount is made available
to the Borrower to but excluding the date of payment to the Administrative
Agent, at (A) in the case of a payment to be made by such Lender, the greater
of the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation, plus

 

60

 

any
administrative, processing or similar fees customarily charged by the
Administrative Agent in connection with the foregoing, and (B) in the case of a
payment to be made by the Borrower, the interest rate applicable to Base Rate
Loans. If the Borrower and such Lender shall pay such interest to the
Administrative Agent for the same or an overlapping period, the Administrative
Agent shall promptly remit to the Borrower the amount of such interest paid by
the Borrower for such period. If such Lender pays its share of the applicable
Borrowing to the Administrative Agent, then the amount so paid shall constitute
such Lender’s Loan included in such Borrowing. Any payment by the Borrower
shall be without prejudice to any claim the Borrower may have against a Lender
that shall have failed to make such payment to the Administrative Agent.

 

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

 

A notice of
the Administrative Agent to any Lender or the Borrower with respect to any
amount owing under this subsection (b) shall be conclusive, absent manifest
error.

 

(c)           Failure to Satisfy Conditions
Precedent. If any Lender makes available to the Administrative Agent funds
for any Loan to be made by such Lender as provided in the foregoing provisions
of this Article II, and such funds are not made available to the
Borrower by the Administrative Agent because the conditions to the applicable
Credit Extension set forth in Article IV are not satisfied or waived in
accordance with the terms hereof, the Administrative Agent shall return such
funds (in like funds as received from such Lender) to such Lender, without interest.

 

(d)           Obligations of Lenders Several. The
obligations of the Lenders hereunder to make Term B Loans and Revolving Credit
Loans, to fund participations in Letters of Credit and Swing Line Loans and to
make payments pursuant to Section 11.04(c) are several and not joint.
The failure of any Lender to make any Loan, to fund any such participation or
to make any payment under Section 11.04(c) on any date required
hereunder shall not relieve any other Lender of its corresponding obligation to
do so on such date, and no Lender shall be responsible for the failure of any
other Lender to so make its Loan, to purchase its participation or to make its
payment under Section 11.04(c).

 

(e)           Funding Source. Nothing herein
shall be deemed to obligate any Lender to obtain the funds for any Loan in any
particular place or manner or to constitute a

 

61

 

representation
by any Lender that it has obtained or will obtain the funds for any Loan in any
particular place or manner.

 

(f)            Insufficient Funds. If at any time
insufficient funds are received by and available to the Administrative Agent to
pay fully all amounts of principal, L/C Borrowings, interest and fees then due
hereunder, such funds shall be applied (i) first, toward payment of interest and fees
then due hereunder, ratably among the parties entitled thereto in accordance
with the amounts of interest and fees then due to such parties, and (ii) second,
toward payment of principal and L/C Borrowings then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of principal
and L/C Borrowings then due to such parties.

 

2.13.       Sharing of Payments by Lenders. If any Lender shall, by
exercising any right of setoff or counterclaim or otherwise, obtain
payment in respect of (a) Obligations in respect of any the Facilities due and
payable to such Lender hereunder and under the other Loan Documents at such
time in excess of its ratable share (according to the proportion of (i) the
amount of such Obligations due and payable to such Lender at such time to (ii)
the aggregate amount of the Obligations in respect of the Facilities due and
payable to all Lenders hereunder and under the other Loan Documents at such
time) of payments on account of the Obligations in respect of the Facilities
due and payable to all Lenders hereunder and under the other Loan Documents at
such time obtained by all the Lenders at such time or (b) Obligations in
respect of any of the Facilities owing (but not due and payable) to such Lender
hereunder and under the other Loan Documents at such time in excess of its
ratable share (according to the proportion of (i) the amount of such
Obligations owing (but not due and payable) to such Lender at such time to (ii)
the aggregate amount of the Obligations in respect of the Facilities owing (but
not due and payable) to all Lenders hereunder and under the other Loan Parties
at such time) of payment on account of the Obligations in respect of the
Facilities owing (but not due and payable) to all Lenders hereunder and under
the other Loan Documents at such time obtained by all of the Lenders at such
time then the Lender receiving such greater proportion shall (a) notify the
Administrative Agent of such fact, and (b) purchase (for cash at face value)
participations in the Loans and subparticipations in L/C Obligations and Swing
Line Loans of the other Lenders, or make such other adjustments as shall be
equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of Obligations in
respect of the Facilities then due and payable to the Lenders or owing (but not
due and payable) to the Lenders, as the case may be, provided that:

 

(i)            if any such participations, or subparticipations
are purchased and all or any portion of the payment giving rise thereto
is recovered, such participations or subparticipations shall be rescinded and
the purchase price restored to the extent of such recovery, without interest;
and

 

(ii)           the provisions of this Section
shall not be construed to apply to (A) any payment made by the Borrower
pursuant to and in accordance with the express terms of this Agreement or (B)
any payment obtained by a Lender as consideration for the assignment of or sale
of a participation in any of its Loans or subparticipations in L/C Obligations or Swing Line Loans to any assignee
or participant, other than to the

 

62

 

Borrower or
any Subsidiary thereof (as to which the provisions of this Section shall
apply).

 

Each Loan
Party consents to the foregoing and agrees, to the extent it may effectively do
so under applicable law, that any Lender acquiring a participation pursuant to
the foregoing arrangements may exercise against such Loan Party rights of
setoff and counterclaim with respect to such participation as fully as if such
Lender were a direct creditor of such Loan Party in the amount of such
participation.

 

2.14.       Increase in Facility.

 

(a)           Borrower Request. The Borrower
may by written notice to the Administrative Agent elect to request (x) prior to
the Maturity Date for the Revolving Credit Facility, an increase to the
existing Revolving Credit Commitments and/or (y) the establishment of one or
more new Term B Commitments (each, an “Incremental Term B Commitment”)
by an amount not in excess of $60,000,000 in the aggregate and not less than
$15,000,000 individually. Each such notice shall specify (i) the date (each, an
“Increase Effective Date”) on which the Borrower proposes that the
increased or new Commitments shall be effective, which shall be a date not less
than 10 Business Days after the date on which such notice is delivered to the
Administrative Agent and (ii) the identity of each Eligible Assignee to whom
the Borrower proposes any portion of such increased or new Commitments be
allocated and the amounts of such allocations; provided that any
existing Lender approached to provide all or a portion of the increased or new
Commitments may elect or decline, in its sole discretion, to provide such
increased or new Commitment.

 

(b)           Conditions. The increased or new Commitments
shall become effective, as of such Increase Effective Date; provided
that:

 

(i)            each of the
conditions set forth in Section 4.02 shall be satisfied;

 

(ii)           no Default shall have occurred
and be continuing or would result from the borrowings to be made on the
Increase Effective Date;

 

(iii)          the Borrower shall
make any payments required pursuant to Section 2.12 in connection with
any adjustment of Revolving Loans pursuant to Section 2.14(d); and

 

(iv)          the Borrower shall
deliver or cause to be delivered any legal opinions or other documents
reasonably requested by the Administrative Agent in connection with any such
transaction consisting of Incremental Term B Commitments of at least
$25,000,000 in the aggregate.

 

(c)           Terms of New Loans and Commitments.
The terms and provisions of Loans made pursuant to the new Commitments shall be
as follows:

 

(i)            terms and provisions of Loans
made pursuant to Incremental Term B Commitments (“Incremental Term B Loans”)
shall be, except as otherwise set forth herein or in the Increase Joinder, identical to the Term B Loans
(it being understood that

 

63

 

Incremental
Term B Loans may be a part of the Term B Loans); provided that the rate
of interest and the amortization schedule applicable to the Incremental Term B
Loans shall be determined by the Borrower and the applicable new Lenders and
shall be set forth in the applicable Increase Joinder;

 

(ii)           the terms and provisions of Revolving
Credit Loans made pursuant to new Commitments, except as otherwise set
forth herein or in the Increase Joinder, shall be identical to the Revolving
Credit Loans;

 

(iii)          the weighted
average life to maturity of any Incremental Term B Loans shall be no shorter
than the weighted average life to maturity of the existing Term B Loans; and

 

(iv)          the maturity date of
Incremental Term B Loans (the “Incremental Term B Loan Maturity Date”)
shall not be earlier than the Maturity Date for the Term B Loans;

 

The increased
or new Commitments shall be effected by a joinder agreement (the “Increase
Joinder”) executed by the Borrower, the Administrative Agent and each
Lender making such increased or new Commitment, in form and substance
satisfactory to each of them. The Increase Joinder may, without the consent of
any other Lenders, effect such amendments to this Agreement and the other Loan
Documents as may be necessary or appropriate, in the opinion of the
Administrative Agent, to effect the provisions of this Section 2.14. In
addition, unless otherwise specifically provided herein, all references in Loan
Documents to Revolving Credit Loans shall be deemed, unless the context
otherwise requires, to include references to Revolving Credit Loans made
pursuant to new Commitments and Incremental Term B Loans that are Term B Loans,
respectively, made pursuant to this Agreement.

 

(d)           Adjustment of Revolving Credit
Loans. To the extent the Commitments being increased on the relevant Increase
Effective Date are Revolving Credit Commitments, then each of the Revolving
Credit Lenders having a Revolving Credit Commitment prior to such Increase
Effective Date (the “Pre-Increase Revolving Credit Lenders”) shall
assign to any Revolving Credit Lender which is acquiring a new or additional
Revolving Credit Commitment on the Increase Effective Date (the “Post-Increase
Revolving Credit Lenders”), and such Post-Increase Revolving Credit Lenders
shall purchase from each Pre-Increase Revolving Credit Lender, at the principal
amount thereof, such interests in the Revolving Credit Loans and participation
interests in Letters of Credit and Swing Line Loans outstanding on such
Increase Effective Date as shall be necessary in order that, after giving effect
to all such assignments and purchases, such Revolving Credit Loans and
participation interests in Letters of Credit and Swing Line Loans will be held
by Pre-Increase Revolving Credit Lenders and Post-Increase Revolving Credit
Lenders ratably in accordance with their Revolving Credit Commitments after
giving effect to such increased Revolving Credit Commitments.

 

(e)           Making of New Term B Loans. On any Increase
Effective Date on which new Commitments for Term B Loans are effective, subject
to the satisfaction of the foregoing terms and conditions, each Lender of such
new Commitment shall make a Term B Loan to the Borrower in an amount equal to
its new Commitment.

 

64

 

(f)            Equal and Ratable Benefit. The Loans and
Commitments established pursuant to this Section shall constitute Loans and
Commitments under, and shall be entitled to all the benefits afforded by, this
Agreement and the other Loan Documents, and shall, without limiting the
foregoing, benefit equally and ratably from the Guaranties and security
interests created by the Collateral Documents. The Loan Parties shall take any
actions reasonably required by the Administrative Agent to ensure and/or
demonstrate that the Lien and security interests granted by the Collateral
Documents continue to be perfected under the UCC or otherwise after giving
effect to the establishment of any such class of Term Loans or any such new Commitments.

 

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01        Taxes.

 

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

 

(b)           Payment of Other Taxes by the
Borrower and Holdings. Without limiting the provisions of subsection (a)
above, the Borrower and Holdings shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

 

(c)           Indemnification by the Borrower and Holdings.
The Borrower and Holdings shall, jointly and severally, indemnify the
Administrative Agent, each Lender and the L/C Issuer, within 30 days after
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender or the L/C Issuer, as the case may be, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to
the amount of such payment or liability delivered to the Borrower by a Lender
or the L/C Issuer (with a copy to the Administrative Agent), or by the
Administrative Agent on its own
behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive absent
manifest error.

 

(d)           Evidence of Payments. As soon as practicable
after any payment of Indemnified Taxes or Other Taxes by any Loan Party to a
Governmental Authority, such Loan

 

65

 

Party shall
deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(e)           Status of Lenders. Any Foreign
Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower or Holdings, as the
case may be, is resident for tax purposes, or any treaty to which such jurisdiction
is a party, with respect to payments hereunder or under any other Loan Document
shall deliver to the Borrower and Holdings (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law or reasonably
requested by the Borrower, Holdings or the Administrative Agent, such properly
completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate of
withholding. In addition, any Lender, if requested by the Borrower, Holdings or
the Administrative Agent, shall deliver such other documentation prescribed by
applicable law or reasonably requested by the Borrower, Holdings or the
Administrative Agent as will enable the Borrower, Holdings or the Administrative
Agent to determine whether or not such Lender is subject to backup withholding or information
reporting requirements.

 

Without
limiting the generality of the foregoing, if the Borrower or Holdings, as the
case may be, is resident for tax purposes in the United States, to the extent
it is legally entitled to do so, any Foreign Lender shall deliver to the
Borrower, Holdings and the Administrative Agent (in such number of copies as
shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Borrower, Holdings or the Administrative
Agent), whichever of the following is applicable:

 

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

 

(ii)           duly completed copies of Internal Revenue Service
Form W-8ECI,

 

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

 

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

 

(f)            Treatment of Certain Refunds. If the
Administrative Agent, any Lender or the L/C Issuer determines, in its sole
discretion, that it has received a refund of any Taxes or

 

66

 

Other Taxes as to which it
has been indemnified by the Borrower or Holdings, as the case may be, or
with respect to which the Borrower or Holdings, as the case may be, has paid
additional amounts pursuant to this Section, it shall pay to the Borrower or
Holdings, as the case may be, an amount equal to such refund (but only to the
extent of indemnity payments made and additional amounts paid, by the Borrower
or Holdings under this Section with respect to the Taxes or Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative
Agent, such Lender or the L/C Issuer, as the case may be, and without interest
(other than any interest paid by the relevant Governmental Authority with
respect to such refund), provided that the Borrower or Holdings, as the
case may be, upon the request of the Administrative Agent, such Lender or the LIC  Issuer, agree to
repay the amount paid over to  the Borrower (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative
Agent, such Lender or the L/C Is suer if the Administrative Agent, such Lender
or the L/C Issuer is required to repay such refund to such Governmental
Authority. This subsection shall not be
construed to require the Administrative Agent, any Lender or the L/C Issuer to
make available its tax returns (or any other information relating to its
taxes that it deems confidential) to the Borrower, Holdings or any other
Person.

 

3.02.       Illegality. If any Lender determines that any
Law has made it unlawful, or that any Governmental Authority has asserted that
it is unlawful, for any Lender or its applicable Lending Office to make,
maintain or fund Eurodollar Rate Loans, or to determine or charge interest
rates based upon the Eurodollar Rate, or any Governmental Authority has imposed
material restrictions on the authority of such Lender to purchase or sell, or
to take deposits of, Dollars in the London interbank market, then, on notice
thereof by such Lender to the Borrower through the Administrative Agent, any
obligation of such Lender to make or continue Eurodollar Rate Loans or to
convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until such
Lender notifies the Administrative Agent and the Borrower that the circumstances
giving rise to such determination no longer exist. Upon receipt of such notice,
the Borrower shall, upon demand from such Lender (with a copy to the
Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate
Loans of such Lender to Base Rate Loans, either on the last day of the Interest
Period therefor, if such Lender may lawfully continue to maintain such
Eurodollar Rate Loans to such day, or immediately, if such Lender may not
lawfully continue to maintain such Eurodollar Rate Loans. Upon any such
prepayment or conversion, the Borrower shall also pay accrued interest on the
amount so prepaid or converted.

 

3.03.       Inability to Determine Rates. If
the Required Lenders determine that for any reason in connection with any
request for a Eurodollar Rate Loan or a conversion to or continuation thereof
that (a) Dollar deposits are not being offered to banks in the London interbank
eurodollar market for the applicable amount and Interest Period of such
Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for
determining the Eurodollar Rate for any requested Interest Period with respect
to a proposed Eurodollar Rate Loan, or (c) the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan does
not adequately and fairly reflect the cost to such Lenders of funding such
Loan, the Administrative Agent will promptly so notify the Borrower and each
Lender. Thereafter, the obligation of the Lenders to make or maintain
Eurodollar Rate Loans shall be suspended until the Administrative Agent (upon
the instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, the Borrower may
revoke any pending request for a Borrowing of,

 

67

 

conversion to or
continuation of Eurodollar Rate Loans or, failing that, will be deemed to have converted
such request into a request for a Borrowing of Base Rate Loans in the amount
specified therein.

 

3.04.       Increased Costs: Reserves on
Eurodollar Rate Loans.

 

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

 

(i)            impose, modify or
deem applicable any reserve, special deposit, compulsory loan, insurance charge
or similar requirement against assets of, deposits with or for the account of,
or credit extended or participated in by, any Lender (except any reserve
requirement contemplated by Section 3 .04(e) or the L/C Issuer;

 

(ii)           subject any Lender or the L/C
Issuer to any tax of any kind whatsoever with respect to this Agreement, any
Letter of Credit, any participation in a Letter of Credit or any Eurodollar
Rate Loan made by it, or change the basis of taxation of payments to such
Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or
Other Taxes covered by Section 3.01 and the imposition of, or any change
in the rate of, any Excluded Tax payable by such Lender or the L/C Issuer); or

 

(iii)          impose on any Lender or the L/C
Issuer or the London interbank market any other condition, cost or expense
affecting this Agreement or Eurodollar Rate Loans made by such Lender or any
Letter of Credit or participation therein;

 

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

 

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

 

68

 

compensate
such Lender or the L/C Issuer or such Lender’s
or the L/C Issuer s. holding company for any such reduction suffered.

 

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

 

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

 

(e)           Reserves on Eurodollar Rate Loans.
The Borrower shall pay to each Lender, as long as such Lender shall be required
to maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency funds or deposits (currently known as “Eurocurrency
liabilities”), additional interest on the unpaid principal amount of each
Eurodollar Rate Loan equal to the actual costs of such reserves allocated to
such Loan by such Lender (as determined by such Lender in good faith, which
determination shall be conclusive), which shall be due and payable on each date
on which interest is payable on such Loan, provided the Borrower shall
have received at least 10 days’ prior notice (with a copy to the Administrative
Agent) of such additional interest from such Lender. If a Lender fails to give
notice 10 days prior to the relevant Interest Payment Date, such additional
interest shall be due and payable 10 days from receipt of such notice.

 

3.05.       Compensation
for Losses. Upon demand of
any Lender (with a copy to the Administrative Agent) from time to time,
the Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it, if any, as a result of:

 

(a)          any continuation,
conversion, payment or prepayment of any Loan other than a Base Rate Loan on a
day other than the last day of the Interest Period for such Loan (whether
voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

 

(b)          any failure by the Borrower
(for a reason other than the failure of such Lender to make a Loan) to prepay,
borrow, continue or convert any Loan other than a Base Rate Loan on the date or
in the amount notified by the Borrower; or

 

69

 

(c)           any assignment of a Eurodollar Rate
Loan on a day other than the last day of the Interest Period therefor as a
result of a request by the Borrower pursuant to Section 11.13;

 

including any
loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Loan or from fees payable to terminate the deposits from
which such funds were obtained (but excluding any loss of anticipated profit).
The Borrower shall also pay any customary administrative fees charged by such Lender in connection with
the foregoing.

 

3.06.       Mitigation Ob1igations Replacement of
Lenders.

 

(a)           Designation of a Different Lending
Office. If any Lender requests compensation under Section 3.04, or
the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section
3.01, or if any Lender gives a notice pursuant to Section 3.02, then
such Lender shall use reasonable efforts to designate a different Lending
Office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or
eliminate the need for the notice pursuant to Section 3.02, as
applicable, and (ii) in each case, would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

 

(b)           Replacement of Lenders. If any
Lender requests compensation under Section 3.04, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, the
Borrower may replace such Lender in accordance with Section 11.13.

 

3.07.       Survival. All of the Borrower’s
obligations under this Article III shall survive termination of the
Aggregate Commitments and repayment of all other Obligations hereunder.

 

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

4.01.       Conditions of Initial Credit Extension.
The obligation of the L/C Issuer and each Lender to make its initial Credit
Extension hereunder is subject to satisfaction of the following conditions
precedent:

 

(a)           The Administrative Agent’s receipt of the
following, each of which shall be originals or telecopies (followed promptly by
originals) unless otherwise specified, each properly executed by a Responsible
Officer of the signing Loan Party, each dated the Closing Date (or, in the case
of certificates of governmental officials, a recent date before the Closing
Date) and each in form and substance satisfactory to the Administrative Agent
and each of the Lenders:

 

70

 

(i)            executed counterparts of this
Agreement and the Guaranty of the Holdings’ Subsidiaries, sufficient in number
for distribution to the Administrative Agent, each Lender and the Borrower;

 

(ii)           a Note executed by the Borrower in favor of each
Lender requesting a Note;

 

(iii)          a pledge and security agreement, in substantially
the form of Exhibit G (together with each other pledge and security
agreement and pledge and security agreement supplement delivered pursuant to Section
6.12, in each case as amended,the “Security Agreement”), duly
executed by each Loan Party, together with (to the extent required by the Security Agreement):

 

(A)          certificates representing the
Pledged Securities referred to therein accompanied by undated stock powers
executed in blank and instruments evidencing the Intercompany Notes indorsed in
blank,

 

(B)          proper financing statements in
form appropriate for filing under the  Uniform Commercial Code of the
State of Delaware, covering the Collateral described in the Security Agreement,

 

(C)          completed Perfection
Certificate and requests for information, dated on or before the date of the
initial Credit Extension, listing all effective financing statements filed in
the jurisdictions referred to in clause (B) above that name any Loan Party as debtor,
together with copies of such other financing statements, and

 

(D)          evidence that all other action
that the Administrative Agent may reasonably deem necessary in order to perfect
the Liens created under the Security Agreement has been taken (including receipt
of duly executed payoff letters, UCC-3 termination statements and landlords’
and bailees’ waiver and consent agreements);

 

(iv)          an intellectual property security
agreement, in substantially the form of Exhibit 6. 7 and 8 to the
Security Agreement, as applicable (together with each other intellectual
property security agreement and intellectual property security agreement
supplement delivered pursuant to Section 6.12, in each case as amended,
the “Intellectual Property Security Agreement”), duly executed by each
Loan Party, together with evidence that all action that the Administrative
Agent may reasonably deem necessary in order to perfect the Liens created under
the Intellectual Property Security Agreement has been taken;

 

(v)           such certificates of resolutions or other action,
incumbency certificates and/or other certificates of Responsible Officers
and/or the Secretary of each Loan Party as the Administrative Agent may
reasonably require evidencing the identity, authority and capacity of each
Responsible Officer thereof authorized to act as a Responsible

 

71

 

Officer in
connection with this Agreement and the other Loan Documents to which such Loan
Party is a party or is to be a party;

 

(vi)          such documents and
certifications as the Administrative Agent may reasonably require to evidence
that each Loan Party is duly organized or formed, and that each of Holdings and
its Subsidiaries is validly existing, in good standing and qualified to engage
in business in each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification;

 

(vii)         a favorable opinion
of Shearman & Sterling LLP, counsel to the Loan Parties, and a favorable
opinion of Kramer Levin Naftalis & Frankel LLP, counsel to the Loan
Parties, in each case, addressed to the Administrative Agent and each Lender,
collectively, as to the matters set forth in Exhibit H and such other
matters concerning the Loan Parties and the Loan Documents as the
Administrative Agent may reasonably request;

 

(viii)        a certificate signed by a
Responsible Officer of the Borrower certifying (A) that the conditions
specified in Sections 4.02(a) (subject to the proviso therein) and (b)
have been satisfied, and (B) that there has been no event or circumstance since
the date of the ISS Audited Financial Statements that has had or would be
reasonably expected to have, either individually or in the aggregate, an ISS
Material Adverse Effect;

 

(ix)          certificates
attesting to the Solvency of Holdings and its Subsidiaries as a whole before
and after giving effect to the Transaction, from its chief financial officer;

 

(x)           evidence that all insurance
required to be maintained pursuant to the Loan Documents has been obtained and
is in effect, together with the certificates of insurance, naming the
Administrative Agent, on behalf of the Lenders, as an additional insured or
loss payee, as the case may be, under all insurance policies maintained with
respect to the assets and properties of the Loan Parties that constitute
Collateral;

 

(xi)          promptly following the initial Credit
Extension on the Closing Date, certified copies of a certificate of
merger or other confirmation satisfactory to the Administrative Agent of the
consummation of the Merger from the Secretary of State of the State of Delaware;

 

(xii)         evidence that the
Indebtedness to be repaid as shown on the pro forma balance sheet of Holdings delivered
pursuant to Section 4.01(h) has been, or concurrently with the Closing
Date is being, terminated and all Liens securing obligations under such
Indebtedness have been or concurrently with the Closing Date are being,
released.

 

Notwithstanding
anything to the contrary herein, with respect to any Collateral, the security
interest in which may not be perfected by the filing of a UCC financing
statement, if the perfection of the security interest in such Collateral may
not be accomplished on or prior to the Closing Date without undue burden or
expense, then the delivery of documents and instruments for perfection of such
security interest shall not constitute a condition precedent to the initial
Borrowing on the Closing Date. To the extent that any such security interest is
not so

 

72

 

perfected on or prior to the Closing Date, then Holdings and the
Borrower agree to deliver or cause to be delivered such documents and
instruments, and take or cause to be taken such other actions as may be
required to perfect such security interests, on or prior to the date that is 30
days after the Closing Date, or such longer period as may be acceptable to the
Arrangers in their sole discretion.

 

(b)           (i) All fees required to be paid to the
Administrative Agent and the Arrangers on or before the Closing Date shall have
been paid and (ii) all fees required to be paid to the Lenders on or before the
Closing Date shall have been paid.

 

(c)           Unless waived by the Administrative
Agent, the Borrower shall have paid all fees, charges and disbursements of
counsel to the Administrative Agent (directly to such counsel if requested by
the Administrative Agent) to the extent invoiced at least three calendar days
prior to the Closing Date (it being understood that the failure to invoice such
fees shall not relieve the Borrower of its obligations under Section 11.04),
plus such additional amounts of such fees, charges and disbursements as shall
constitute its reasonable estimate of such fees, charges and disbursements
incurred or to be incurred by it through the closing proceedings (provided
that such estimate shall not thereafter preclude a final settling of accounts
between the Borrower and the Administrative Agent).

 

(d)           The Merger Agreement shall be in full force and
effect.

 

(e)           The Merger shall have been
consummated contemporaneously with the initial Credit Extension, strictly in
accordance with the terms of the Merger Agreement, which shall not have been
amended or modified or any condition therein waived or otherwise unsatisfied in
a manner that is, in the reasonable judgment of the Arrangers, material and
adverse to the Lenders (including, without limitation any amendment,
modification or waiver of any condition precedent requiring the absence of a
material adverse effect and without giving effect to any exclusion from the
definition of a material adverse effect resulting from actions consented to or
directed by the Borrower or any of its affiliates) without the prior written
consent of the Administrative Agent and in compliance with all applicable
requirements of Law.

 

(f)            The Administrative Agent shall have
received reasonably satisfactory evidence of receipt by the Borrower of not
less than $125,000,000 aggregate principal amount of Second Lien Loans.

 

(g)           The Rollover Equity Contribution
shall have been consummated on terms reasonably acceptable to the
Administrative Agent.

 

(h)           The Administrative Agent and Lenders
shall have received: audited consolidated financial statements of Seller and
its Subsidiaries for the three most recent fiscal years ended 90 days or more
prior to the Closing Date, unaudited consolidated financial statements of
RiskMetrics, Seller and their respective subsidiaries for any interim quarterly
periods that have ended more than 45 days before the Closing Date, and a pro
forma balance sheet prepared by management of Holdings and its Subsidiaries
giving effect to the Transaction as of November 30, 2006, which shall be
reasonably satisfactory in form and substance to the Administrative Agent and
the Lenders (it being recognized by the Administrative Agent and the

 

73

 

Lenders that
such balance sheet does not give effect to changes arising from any purchase
accounting valuation adjustments in accordance with the Transaction and
otherwise represents the Borrower’s good faith estimate of the pro forma items
contained therein and that such estimate is inherently uncertain and subject to change).

 

(i)            The representations and warranties
in the Merger Agreement relating to Seller, its Subsidiaries and their
respective businesses that are material to the interests of the Lenders shall
be true and correct on and as of the Closing Date (except where such
representations and warranties shall have been true and correct as of such
earlier date) unless, as a result of any failure to be so true and correct,
RiskMetrics does not have the right to terminate  its obligations
under the Merger Agreement.

 

Without
limiting the generality of the provisions of Section 9.04, for purposes
of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with,  each document or
other matter required thereunder to be consented to or approved by or acceptable
or satisfactory to a Lender unless the Administrative Agent shall have received
notice  from such Lender prior to the proposed Closing Date
specifying its objection thereto.

 

4.02.        Conditions to All Credit Extensions.
The obligation of each Lender to honor any Request for Credit Extension (other
than a Committed Loan Notice requesting only a conversion of Loans to the other
Type, or a continuation of Eurodollar Rate Loans) is subject to the following
conditions precedent:

 

(a)           The representations and warranties of
the Borrower and each other Loan Party contained in Article V or any
other Loan Document, or which are contained in any document when furnished
under or in connection herewith or therewith, shall be true and correct in all
material respects on and as of the date of such Credit Extension, except to the
extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct in all material
respects as of such earlier date, provided that in the case of any
Credit Extension to be made on the Closing Date, only the Specified
Representations shall apply for purposes of this Section 4.02(a). For
purposes of this Section 4.02(a), the “Specified Representations” shall
mean the representations and warranties set forth in Sections 5.01(b) (excluding clause (b)(i) thereof), 5.02(a),
5.04, 5.14 and 5.18.

 

(b)           Except in the case of any Credit Extension on the
Closing Date, no Default shall exist, or would result from such proposed Credit
Extension or from the application of the proceeds thereof.

 

(c)           The Administrative Agent and, if applicable, the
L/C Issuer or the Swing Line Lender shall have received a Request for Credit
Extension in accordance with the requirements hereof.

 

Each Request
for Credit Extension (other than a Committed Loan Notice requesting only a
conversion of Loans to the other Type or a continuation of Eurodollar Rate
Loans) submitted by the Borrower shall be deemed to be a representation and
warranty that the

 

74

 

conditions
specified in Sections 4.02(a) (subject to the proviso set forth therein)
and (b) have been satisfied on and as of the date of the applicable
Credit Extension.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

 

Each Loan
Party represents and warrants to the Administrative Agent and the Lenders on
the date of each Credit Extension (other than the Closing Date) and each Loan
Party (other than Seller and its Subsidiaries) represents and warrants to the
Administrative Agent and the Lenders on the Closing Date:

 

5.01.       Existence, Qualification and Power. Each Loan Party and
each of its Subsidiaries (a) is duly organized or formed, validly
existing and, as applicable, in good standing under the Laws of the
jurisdiction of its incorporation or organization, (b) has all requisite power
and authority and all requisite governmental authorizations to (i) own,
operate, lease and otherwise hold its assets and carry on its business as it is
now being conducted and (ii) execute, deliver and perform its obligations under
the Loan Documents to which it is a party and consummate the Transaction, and
(c) is duly qualified and is licensed and, as applicable, in good standing
under the Laws of each jurisdiction where the character of the properties
owned, leased or operated by it or the nature of its assets, business or
activities makes such qualification or licensing necessary; except in each case
referred to in clause (b)(i) or (c), to the extent that failure to do so would
not reasonably be expected to have a Material Adverse Effect.

 

5.02.       Authorization; No Contravention. (a) The execution,
delivery and performance by each Loan Party of each Loan Document to
which such Person is or is to be a party have been duly authorized by all
necessary corporate or other organizational action, and (b) do not and will not
result in any violation or default (with or without notice or lapse of time or
both) under or give rise to a right of acceleration, termination or
cancellation of any obligation or result in the creation of any Lien upon any
of the properties or assets of Holdings or its Subsidiaries under, any
provision of (i) any of such Person’s Organization Documents; (ii) any
Contractual Obligation to which such Person is a party or affecting such Person
or the properties of such Person or any of its Subsidiaries; (iii) any order,
injunction, writ or decree of any Governmental Authority or any arbitral award
to which such Person or its property is subject; or (iv) any Law other than, in
the case of clause (ii), (iii) or (iv), such items that would not have a
Material Adverse Effect.

 

5.03.       Governmental Authorization; Other
Consents. Except as set forth on Schedule 5.03, no approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority is required in connection with (a) the execution, delivery or performance by any Loan Party of
this Agreement or any other Loan Document or for the consummation of the
Transaction, (b) the grant by any Loan Party of the Liens granted by it
pursuant to the Collateral Documents, (c) the perfection or maintenance of the
Liens created under the Collateral Documents (including the first priority
nature thereof), other than the filing of appropriate UCC financing statements and
appropriate filings with the United States Patent and Trademark Office and the
United States Copyright Office, or (d) the exercise by the Administrative Agent
or any Lender of its rights under the Loan Documents or remedies in respect of
the Collateral pursuant to the Collateral Documents except (i) approvals,
consents,

 

75

 

exemptions,
authorizations, actions, notices or filings required by securities or
applicable law in connection with an exercise of remedies, (ii) approvals,
consents, exemptions, authorizations, actions, notices to, or filings with any
Governmental Authority, the absence of which or the failure to make would not
reasonably be expected to have a Material Adverse Effect or (iii) those that
have been obtained and are in full force and effect.

 

5.04.       Binding Effect. This Agreement has been, and each other Loan Document,
when delivered hereunder, will have been, duly executed and delivered by each
Loan Party that is party thereto. This Agreement constitutes, and each other
Loan Document when so delivered will constitute, a legal, valid and binding
obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally or by equitable principles relating to
enforceability.

 

5.05.       Financial Statements; No Material Adverse Effect.

 

(a)           The RMG Audited Financial Statements (i) were
prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; (ii) fairly
present in all material respects the financial condition of RiskMetrics and its
Subsidiaries as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein; and
(iii) show all material indebtedness and other liabilities, direct or
contingent, to the extent required to be reflected on the face of a balance
sheet in accordance with GAAP, of RiskMetrics and its Subsidiaries as of the
date thereof, including liabilities for taxes, material commitments and
Indebtedness.

 

(b)           The ISS Audited Financial Statements (i) are
accurate and complete in all material respects, have been prepared in
accordance with GAAP consistently applied, (ii) are consistent with the books
and records of Seller and (iii) fairly present, in all material respects, the
consolidated financial condition, results of operations and cash flows of
Seller and its Subsidiaries as of the dates and for the periods indicated
therein.

 

(c)           The unaudited consolidated balance
sheet of Seller and its Subsidiaries dated September 30, 2006, and the related
unaudited consolidated statements of operation and cash flows for the
nine-month period ended on that date (i) are accurate and complete in all
material respects, have been prepared in accordance with GAAP consistently
applied, except as otherwise expressly noted in Schedule 5.6 of the Merger
Agreement, (ii) are consistent with the books and records of Seller and its
Subsidiaries and (iii) fairly present, in all material respects, the consolidated
financial condition, results of operations and cash flows of Seller and its
Subsidiaries as of the date thereof and for the periods indicated therein,
subject, in the case of clauses (i) and (ii), to the absence of footnotes and
to normal year-end audit adjustments and other presentation items.

 

(d)           Since December 31, 2006, there has
been no event or circumstance, either individually or in the aggregate, that
has had or would reasonably be expected to have a Material Adverse Effect.

 

76

 

(e)           The consolidated pro forma balance
sheet prepared by management of Holdings and its Subsidiaries as of the
November 30, 2006 delivered pursuant to Section 4.01(h) fairly presented
in all material respects on the Closing Date the consolidated pro forma
financial condition of Holdings and its Subsidiaries at such date, giving
effect to the Transaction (it being recognized by the Administrative Agent and
the Lenders that such balance sheet does not give effect to changes arising
from any purchase accounting valuation adjustments in accordance with the
Transaction and otherwise represents the Borrower’s good faith estimate of the
pro forma items contained therein and that such estimate is inherently
uncertain and subject to change).

 

(f)            The consolidated forecasted balance
sheet, statements of income and cash flows of Holdings and its Subsidiaries
delivered pursuant to Section 6.01(c) after the Closing Date were
prepared in good faith on the basis of the assumptions stated therein, which
assumptions were reasonable in light of the conditions existing at the time of
delivery of such forecasts, and represented, at the time of delivery, the
Borrower’s good faith estimate of its future financial condition and
performance (it being recognized by Administrative Agent and the Lenders that
such consolidated forecasted balance sheet, statements of income and cash flows
are not to be viewed as facts and that actual results during the period or
periods covered thereby may vary and that such variances may be material).

 

5.06.       Litigation. There are no actions,
suits, proceedings, claims or disputes pending or, to the knowledge of the
Borrower, threatened at law, in equity, in arbitration or before any
Governmental Authority, by or against the Borrower or any of its Subsidiaries
or against any of their properties or revenues that (a) purport to affect or
pertain to this Agreement, any other Loan Document, or the consummation of the
Transaction, or (b) either individually or in the aggregate, if determined
adversely, would reasonably be expected to have a Material Adverse Effect.

 

5.07.       No Default. Neither any Loan Party
nor any Subsidiary thereof is in default under or with respect to, or a party
to, any Contractual Obligation that would, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. No  Default
has occurred and is continuing or would result from the consummation of the
transactions contemplated by this Agreement or any other Loan Document.

 

5.08.       Ownership of Property.

 

(a)           Each Loan Party and each of its
Subsidiaries has good record and marketable title in fee simple to, or
leasehold interests in, all real property necessary or used in the ordinary
conduct of its business, except for such defects in title as would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

(b)           As of the Closing Date, no Loan Party
owns any real property.

 

5.09.       Environmental Compliance. Except
as would not reasonably be expected to have a Material Adverse Effect and to
the knowledge of the Loan Parties, the Loan Parties and  their
respective Subsidiaries are in compliance in all material respects with all
applicable Environmental Laws. No Loan Party has caused, arranged or allowed,
or contracted with any party for, the transportation, treatment, storage or
disposal of any Hazardous Materials. Except

 

77

 

as would not
reasonably be expected to have a Material Adverse Effect and to the Borrower’s
knowledge, no Hazardous Materials have been released into the environment on or
from the premises of the Loan Parties or their respective Subsidiaries which is
required under applicable Environmental Law to be abated or remediated by any
Loan Party. Except as would not reasonably be expected to have a Material
Adverse Effect and to the Borrower’s knowledge, there are no past or present
conditions, events, circumstances or facts that can reasonably be expected to
form the basis of any claim or legal proceedings against or involving any Loan
Party based on or related to any violation of any Environmental Law. For the
avoidance of doubt, this Section 5.09 represents the sole and exclusive
representations and warranties of the Loan Parties regarding compliance with
Environmental Laws.

 

5.10.       Insurance. The properties of
Holdings and its Subsidiaries are insured with financially sound and reputable
insurance companies not Affiliates of the Borrower, in such amounts, with such
deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where
Holdings or the applicable Subsidiary operates.

 

5.11.       Taxes. Holdings and its
Subsidiaries have filed all material Federal, state and other tax returns and
reports required to be filed, and have paid all material Federal, state and
other taxes, assessments, fees and other governmental charges levied or imposed
upon them or their properties (whether or not any such items are shown on a tax
return), income or assets otherwise due and payable, except those which are
being contested in good faith by appropriate proceedings and for which adequate
reserves have been provided in accordance with GAAP. Neither any Loan Party nor
any Subsidiary thereof is party to any tax sharing agreement.

 

None of
Holdings or its Subsidiaries has ever been a party to any understanding or
arrangement constituting a “tax shelter” within the meaning of Section
6662(d)(2)(C)(iii) of the Code or within the meaning of Section 6111(c) or
Section 6111(d) of the Code as in effect immediately prior to the enactment of
the American Jobs Creation of 2004, or has ever “participated” in a “reportable
transaction” within the meaning of Treasury Regulation Section 1.6011-4, except
as would not, individually or in the aggregate, have a Material Adverse Effect.

 

5.12.       ERISA Compliance.

 

(a)           Except as has not resulted and would
not reasonably be expected to result in a Material Adverse Effect, each Plan is
in compliance with the applicable provisions of ERISA, the Code and other
Federal or state Laws. Each Plan that is intended to qualify under Section
401(a) of the Code has received a favorable determination letter from the IRS
or an application for such a letter is currently being processed by the IRS
with respect thereto and, to the best knowledge of the Borrower, nothing has
occurred which would prevent, or cause the loss of, such qualification.
Holdings and each ERISA Affiliate have made all required contributions to each
Plan subject to Section 412 of the Code, and no application for a funding
waiver or an extension of any amortization period pursuant to Section 412 of
the Code has been made with respect to any Plan.

 

(b)         There are no pending or, to the
best knowledge of the Borrower, threatened claims, actions or lawsuits, or
action by any Governmental Authority, with respect to

 

78

 

any Plan that
would reasonably be expected to have a Material Adverse Effect. There has been
no prohibited transaction or violation of the fiduciary responsibility rules
with respect to any Plan that has resulted or would reasonably be expected to
result in a Material Adverse Effect.

 

(c)           (i) No ERISA Event has occurred or is reasonably
expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability;
(iii) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably
expects to incur, any liability under Title IV of ERISA with respect to any
Pension Plan (other than premiums due and not delinquent under Section 4007 of
ERISA); (iv) neither the Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability (and no event has occurred which,
with the giving of notice under Section 4219 of ERISA, would result in such
liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer
Plan; and (v) neither the Borrower nor any ERISA Affiliate has engaged in a
transaction that would be subject to Section 4069 or 4212(c) of ERISA.

 

(d)           With respect to each scheme or arrangement mandated
by a government other than the United States (a “Foreign Government Scheme
or Arrangement”) and with respect to each employee benefit plan maintained
or contributed to by any Loan Party or any Subsidiary of any Loan Party that is
not subject to United States law (a “Foreign Plan”):

 

(i)            any employer and
employee contributions required by law or by the terms of any Foreign
Government Scheme or Arrangement or any Foreign Plan have been made, or, if
applicable, accrued, in accordance with normal accounting practices;

 

(ii)           the fair market value of the
assets of each funded Foreign Plan, the liability of each insurer for any
Foreign Plan funded through insurance or the book reserve established for any
Foreign Plan, together with any accrued contributions, is sufficient to procure
or provide for the accrued benefit obligations, as of the date hereof, with
respect to all current and former participants in such Foreign Plan according
to the actuarial assumptions and valuations most recently used to account for
such obligations in accordance with applicable generally accepted accounting
principles and to the extent required by applicable laws; and

 

(iii)          each Foreign Plan required to
be registered has been registered and has been maintained in good standing with
applicable regulatory authorities.

 

5.13.       Subsidiaries; Loan Parties. As of
the Closing Date (after giving effect to the Merger), no Loan Party has any
Subsidiaries other than those specifically disclosed in Part (a) of Schedule
5.13, and all of the outstanding Equity Interests in such Subsidiaries have
been validly
issued, are fully paid and non-assessable and are owned by a Loan Party in the
amounts specified on Part (a) of Schedule 5.13 free and clear of
all Liens except those permitted under the Loan Documents. All of the
outstanding Equity Interests in the Borrower have been validly issued, are
fully paid and non-assessable and as of the Closing Date (after giving effect
to the Merger) are owned by Holdings in the amounts specified on Part (b) of Schedule
5.13 free and clear of all Liens except those permitted under the Loan
Documents. Set forth on Part (c) of Schedule 5.13 is a complete and
accurate list of all Loan Parties as of the Closing Date (after giving effect
to the Merger), showing as of the Closing Date (after giving effect to the
Merger)

 

79

 

(as to each
Loan Party) the jurisdiction of its organization, the address of its principal
place of business and its U.S. taxpayer identification number or, in the case
of any non-U.S. Loan Party that does not have a U.S. taxpayer identification
number, its unique identification number issued to it by the jurisdiction of
its organization, if any. As of the Closing Date (after giving effect to the
Merger), the copy of the charter (or the equivalent thereof) of each Loan Party
and each amendment
thereto provided pursuant to Section 4.01(a)(vi) is a true and correct
copy of each such document, each of which is valid and in full force and
effect.

 

5.14.       Margin Regulations; Investment Company
Act.

 

(a)           The Borrower is not
engaged and will not engage, principally or as one of its important activities,
in the business of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the FRB), or extending credit for the purpose of
purchasing or
carrying margin stock.

 

(b)           No Loan Party is
required to be registered as an “investment company” under the Investment
Company Act of 1940.

 

5.15.       Disclosure. To the best knowledge
of the Responsible Officers of the Borrower, (a) all written factual
information (other than the Projections (as defined below) and other
forward-looking information and information of a general economic or industry
specific nature), that has been made available to the Administrative Agent or
any of the Lenders by or on behalf of any Loan Party in connection with the
Merger and the other transactions contemplated hereby on or prior to the date
hereto, taken as a whole, was complete and correct in all material respects
when furnished and did not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements contained
therein; not misleading in light of the circumstances under which such statements
were made and after giving effect to all supplements thereto and (b) all
financial projections concerning Holdings and its Subsidiaries that have been
made available to the Administrative Agent or any of the Lenders by or on
behalf of any Loan Party (the “Projections”) and other forward-looking
information and information of a general economic or industry specific nature,
taken as a whole, has been prepared in good faith based upon reasonable
assumptions (it being recognized by the Administrative Agent and the Lenders
that such Projections and forward-looking information are not to be viewed as
facts and that actual results during the period or periods covered thereby may
vary and that such variances may be material).

 

5.16.       Intellectual Property; Licenses, Etc.
Schedule 5.17 sets forth as of the Closing Date a true and complete list
of (i) all registered patents and patent applications, registered trademarks
and trademark applications, registered copyrights and copyright applications
and domain names owned by Holdings and its Subsidiaries (collectively, “Owned
Intellectual Property”) and (ii) material licenses of intellectual property
granted by third parties to Holdings or any of its Subsidiaries, or to third
parties by Holdings or any or its Subsidiaries, except (A) licenses of
commercially available off-the-shelf software, (B) licenses of market and other
data used in the ordinary course of business and (C) those licenses the failure
of which to remain
in full force and effect would not reasonably be expected to have a Material
Adverse Effect (“Licensed Intellectual Property”). Except as
would not have a Material Adverse Effect, Holdings or one of its Subsidiaries:
(a) is the owner of each listed item of Owned Intellectual

 

80

 

Property, and
(b) is entitled to use each item of Licensed Intellectual Property in the
operation of  its business as currently conducted. The Owned
Intellectual Property is free and clear of any Lien other than any Lien
permitted under the terms of the Loan Documents.

 

5.17.       Solvency. Holdings is, together
with its Subsidiaries on a consolidated basis, Solvent.

 

5.18.       Collateral
Documents. The provisions of the Collateral Documents are effective (to the
extent complied with) to create in favor of the Administrative Agent for the
benefit of the Secured Parties a valid and perfected first priority Lien
(subject to Liens permitted by Section 7.01) on all right, title and
interest of the respective Loan Parties in the Collateral described therein.
Except for filings completed prior to the Closing Date and as contemplated
hereby and by the Collateral Documents, no filing or other action (except to
the extent possession of portions of the Collateral is required for perfection)
will be necessary to perfect or protect such Liens.

 

ARTICLE
VI

AFFIRMATIVE COVENANTS

 

So long as any
Lender shall have any Commitment hereunder, any Loan or other Obligation (other
than any contingent indemnification obligations) hereunder shall remain unpaid
or unsatisfied, or any Letter of Credit shall remain outstanding (unless Cash
Collateralized in an amount equal to 102.5% of the face amount thereof),
Holdings shall, and shall (except in the case of the covenants set forth in Sections
6.01, 6.02, 6.03, and 6.11) cause each Subsidiary to:

 

6.01.       Financial Statements. Deliver to
the Administrative Agent:

 

(a)           as soon as available, but in any
event within 120 days after (i) the end of each fiscal year of Holdings
(commencing with the fiscal year ended December 31, 2007, a consolidated
balance sheet of Holdings and its Subsidiaries as at the end of such fiscal
year, and (ii) December 31, 2006, a consolidated balance sheet of RiskMetrics
and its Subsidiaries as at the end of such fiscal year, and (iii) December 31,
2006, a consolidated balance sheet of Seller and its Subsidiaries as at the end
of such fiscal year, and, in the case of each of the foregoing clauses  (i),
(ii), and (iii),
the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year, setting forth in each case
in comparative form the figures for the previous fiscal year, (commencing with
fiscal year 2008), all in reasonable detail and prepared in accordance with
GAAP, audited and accompanied by a report and opinion of a Registered Public
Accounting Firm of nationally recognized standing reasonably acceptable to the
Required Lenders, which report and opinion shall be prepared in accordance with
generally accepted auditing standards and shall not be subject to any “going
concern” or like qualification or exception or any qualification or exception
as to the scope of such audit or with respect to the  absence of any
material misstatement;

 

(b)           as soon as available, but in any
event within 45 days after (i) the end of each fiscal quarter of Holdings
(commencing with the fiscal quarter ended March 31, 2007), a consolidated
balance sheet of Holdings and its Subsidiaries as at the end of such fiscal
quarter,

 

81

 

(ii) December
31, 2006, a consolidated balance sheet of RiskMetrics and its Subsidiaries as
at the  end of such fiscal quarter, and (iii) December 31, 2006, a
consolidated balance sheet of Seller and its Subsidiaries as at the end of such
fiscal quarter, and in the case of each of the foregoing clauses  (i),
(ii), and (iii),
the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal quarter and for the portion of the fiscal
year then ended, setting forth in each case in comparative form the figures for
the corresponding fiscal quarter (commencing with the fiscal quarter ended
March 31, 2008) of the previous fiscal year and the corresponding portion of
the previous fiscal year, all in reasonable detail, certified by the chief
executive officer, chief financial officer, treasurer or controller of Holdings
as fairly presenting the financial condition, results of operations,
shareholders’ equity and cash flows of  Holdings and its Subsidiaries
in accordance with GAAP, subject only to normal year-end audit  adjustments
and the absence of footnotes; and

 

(c)           as soon as available, but in any
event not later than 60 days after the first day of each fiscal year of
Holdings (commencing with fiscal year 2008), an annual business plan  and
budget of Holdings and its Subsidiaries on a consolidated basis for such fiscal
year, including forecasts prepared by management of the Borrower in the form
customarily prepared by management of the Borrower for its internal use, of
consolidated balance sheets and  statements of income or operations
and cash flows of Holdings and its Subsidiaries on a quarterly basis for the
immediately following fiscal year (including the fiscal year in which the  Maturity
Date for the Term B Facility occurs).

 

As to any
information contained in materials furnished pursuant to Section 6.02(d),
the Borrower shall not be separately required to furnish such information under
Section 6.01(a) or (b) above, but the foregoing shall not be
in derogation of the obligation of the Borrower to furnish the information and materials described in Sections
6.01 (a) and (b). above
at the times specified therein.

 

6.02.       Certificates: Other Information.
Deliver to the Administrative Agent:

 

(a)           concurrently with the delivery of the
financial statements referred to in Section 6.01(a) (commencing with the delivery of the
financial statements for the fiscal year ended December 31, 2007, a
certificate of its independent certified public accountants certifying such
financial statements and stating that in making the examination necessary
therefor no knowledge was obtained of any Default under Section 7.11 or,
if any such Default shall exist, stating the nature and status of such event; provided
that if, as a matter of policy, such accountants cease to provided such
statements generally (and not only to the Borrower), the Borrower shall not be
required to deliver such certificate;

 

(b)           concurrently with the delivery of the
financial statements referred to in Sections 6.01 (a) and (b) (commencing with the delivery of the
financial statements for the fiscal  quarter ended June 30,
2007) a duly completed Compliance Certificate signed by the chief executive
officer, chief financial officer, treasurer or controller of Holdings and (ii)
a copy of management’s discussion and analysis with respect to such financial
statements;

 

(c)           promptly after any request by the Administrative
Agent or any Lender, copies of any detailed audit reports, management letters
or recommendations submitted to the

 

82

 

board of
directors (or the audit committee of the board of directors) of any Loan Party
by independent accountants in connection with the accounts or books of any Loan
Party or any of its  Subsidiaries, or any audit of any of them;

 

(d)           promptly after the same are available, copies of
each annual report, proxy or
financial statement or other report or communication sent to the stockholders
of the Borrower, and copies of all annual, regular, periodic and special
reports and registration statements which the Borrower may file or be required
to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act
of 1934, or with any national securities exchange, and in any case not otherwise required to be delivered to the
Administrative Agent pursuant hereto;

 

(e)           promptly after the furnishing
thereof, copies of any statement or report furnished to any holder of debt
securities of any Loan Party or of any of its Subsidiaries pursuant to the
terms of any indenture, loan or credit or similar agreement and not otherwise
required to be furnished to the Lenders pursuant to Section 6.01 or any
other clause of this Section 6.02;

 

(f)            promptly, and in any event within
five Business Days after receipt thereof by any Loan Party or any Subsidiary
thereof, copies of each notice or other correspondence received from the SEC
(or comparable agency in any applicable non-U.S. jurisdiction) concerning any
investigation or possible investigation or other inquiry by such agency regarding
financial or other operational results of any Loan Party or any Subsidiary
thereof;

 

(g)           promptly after the assertion or
occurrence thereof, notice of any action or proceeding against or of any
noncompliance by any Loan Party or any of its Subsidiaries with any
Environmental Law or Environmental Permit that would reasonably be expected to
have a Material Adverse Effect;

 

(h)           as soon as available, but in any
event within 30 days after the end of each fiscal year of Holdings, a report
supplementing Schedule 5.17, setting forth (A) a list of registration
numbers for all patents, trademarks, service marks, trade names and copyrights
awarded to any Loan Party during such fiscal year and (B) a list of all patent
applications, trademark applications, service mark applications, trade name
applications and copyright applications submitted by any Loan Party or any
Subsidiary thereof during such fiscal year and  the status of each such application in a form
reasonably satisfactory to the Administrative Agent; and

 

(i)            promptly, such additional
information regarding the business, financial, legal or corporate affairs of
any Loan Party or any Subsidiary thereof, or compliance with the  terms of the Loan Documents, as the
Administrative Agent may from time to time reasonably request.

 

Documents required to
be delivered pursuant to Section 6.01 (a) or (b) or Section
6.02(d) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto on the Borrower’s
website on the Internet at the website address listed on Schedule 11.02;
or (ii) on which such documents are posted on the Borrower’s behalf on an
Internet or intranet website,

 

83

 

if any, to
which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative
Agent); provided that: (i) the Borrower shall deliver paper copies of
such documents to the Administrative Agent or any Lender that requests the
Borrower to deliver such paper copies until a written request to cease
delivering paper copies is given by the Administrative Agent or such Lender and
(ii) the Borrower shall notify the Administrative Agent and each Lender (by
telecopier or electronic mail) of the posting of any such documents and provide
to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.
Notwithstanding anything contained
herein, in every instance the Borrower shall be required to provide paper copies
of the Compliance Certificates required by Section 6.02(b) to the
Administrative Agent. Except for such Compliance Certificates, the
Administrative Agent shall have no obligation to            request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by the Borrower with
any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

 

The Borrower
hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will
make available to the Lenders and the L/C Issuer materials and/or information
provided by or on behalf of the Borrower hereunder (collectively, “Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another
similar electronic system (the “Platform”) and (b) certain of the
Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to
receive material non-public information with respect to the Borrower or its
securities) (each, a “Public Lender”). The Borrower hereby agrees that
so long as the Borrower is the issuer of any outstanding debt or equity
securities that are registered or issued pursuant to a private offering or is
actively contemplating issuing any such securities it will use commercially
reasonable efforts to identify that portion of the Borrower Materials that may
be distributed to the Public Lenders and that (w) all such Borrower Materials
shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall
mean that the word “PUBLIC” shall appear prominently on the first page thereof;
(x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to
have authorized the Administrative Agent, the Arrangers, the L/C Issuer and the
Lenders to treat such Borrower Materials as not containing any material non-public
information (although it may be sensitive and proprietary) with respect to the
Borrower or its securities for purposes of United States Federal and state
securities laws (provided, however, that to the extent such
Borrower Materials constitute Information, they shall be treated as set forth
in Section 11.07); (y) all Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated “Public
Investor”; and (z) the Administrative Agent and the Arrangers shall be entitled
to treat any Borrower Materials that are not marked “PUBLIC” as being suitable
only for posting on a portion of the Platform not designated “Public Investor.”
Notwithstanding the foregoing, the Borrower shall be under no obligation to
mark any Borrower Materials “PUBLIC.”

 

6.03.       Notices. Promptly notify the
Administrative Agent and each Lender:

 

(a)           of the occurrence of any Default;

 

84

 

(b)           of any matter that has resulted or would reasonably
be expected to result in a Material Adverse Effect, including (i) breach or
non-performance of, or any default under, a Contractual Obligation of any Loan
Party or any Subsidiary thereof; (ii) any dispute, litigation, investigation,
proceeding or suspension between any Loan Party or any Subsidiary thereof and
any Governmental Authority; or (iii).the commencement of, or any material
development in, any litigation or proceeding affecting any Loan Party or any
Subsidiary thereof, including pursuant to any applicable Environmental Laws;

 

(c)           of the occurrence of any ERISA Event
that would reasonably be expected to result in liability in excess of the
Threshold Amount;

 

(d)           of any material change in accounting
policies or financial reporting practices by any Loan Party or any Subsidiary
thereof;

 

(e)           of the (i) occurrence of any Disposition of
property or assets for which the Borrower is required to make a mandatory
prepayment pursuant to Section 2.05(b)(ii), (ii) incurrence or issuance
of any Indebtedness for which the Borrower is required to make a mandatory
prepayment pursuant to Section 2.05(b)(iii), and (iii) receipt of any
Extraordinary Receipt for which the Borrower is required to make a mandatory
prepayment pursuant to Section 2.05(b)(iv); and

 

Each notice pursuant
to Section 6.03 shall be accompanied by a statement of a Responsible
Officer of the Borrower setting forth details of the occurrence referred to
therein and  stating what action the Borrower has taken and proposes
to take with respect thereto. Each notice pursuant to Section 6.03(a) shall describe with
particularity any and all provisions of this Agreement and any other
Loan Document that have been breached.

 

6.04.       Payment of Obligations. Except as
would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, pay and discharge as the same shall become due and
payable, all its material obligations and liabilities, including (a)all  tax
liabilities, assessments and governmental charges or levies upon it or its properties
or assets, unless the same are being contested in good faith by appropriate
proceedings and adequate reserves in accordance with GAAP are being maintained
by the Borrower or such Subsidiary; (b) all lawful claims which, if unpaid,
would by law become a Lien upon its property (other than any Lien permitted
under Section 7.01); and (c) all Indebtedness, as and when due and
payable, but subject to any subordination provisions contained in any
instrument or agreement evidencing such Indebtedness.

 

6.05.      Preservation of
Existence, Etc. (a) Preserve, renew and maintain in full force and effect
its legal existence and good standing under the Laws of the jurisdiction of its
organization
except in a transaction permitted by Section 7.04 or 7.05; provided, however, that  the Borrower and its
Subsidiaries may consummate the Merger and any other merger or consolidation
permitted under Section 7.04; (b)take all reasonable action to maintain
all rights, privileges, permits, licenses and franchises necessary or desirable
in the normal conduct of its business, except to the extent that failure to do
so would not reasonably be expected to have a Material Adverse Effect; and (c)
preserve or renew all of its registered patents, trademarks, trade

 

85

 

names and
service marks, the non-preservation of which would reasonably be expected to
have a Material Adverse Effect.

 

6.06.       Maintenance of Properties. (a)
Maintain, preserve and protect all of its material properties and equipment
necessary in the operation of its business in good working order and condition,
ordinary wear and tear excepted; and (b) make all necessary repairs thereto and
renewals and replacements thereof except where the failure to do so would not
reasonably be expected to have a Material Adverse Effect.

 

6.07.       Maintenance of Insurance. Maintain
with financially sound and reputable insurance companies not Affiliates of the
Borrower, insurance with respect to its properties and business against loss or
damage of the kinds customarily insured against by Persons engaged in the same
or similar business, of such types and in such amounts as are customarily
carried under similar circumstances by such other Persons and providing for not
less than 30 days’ prior notice to the Administrative Agent of termination,
lapse or cancellation of such insurance.

 

6.08.       Compliance with Laws. Comply in
all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its business or property, except in such
instances in which (a) such requirement of Law or order, writ, injunction or
decree is being contested in good faith by appropriate proceedings or (b) the
failure to comply therewith would not reasonably be expected to have a Material
Adverse Effect.

 

6.09.       Books and Records. Maintain proper
books of record and account, in which full, true and correct entries, in all
material respects, in conformity with GAAP consistently applied shall be made
of all financial transactions and matters involving the assets and business of
the Borrower or such Subsidiary, as the case may be.

 

6.10.       Inspection Rights. (a) Upon
reasonable advance notice to the Borrower and at reasonable times during normal
business hours, permit representatives and independent contractors of the
Administrative Agent and each Lender to visit and inspect any of its
properties, to examine its corporate, financial and operating records, and make
copies thereof or abstracts therefrom, and to discuss its affairs, finances and
accounts with its directors, officers, and independent public accountants, all
at the expense of the Borrower; provided, however, that so long
as no Event of Default shall have occurred and be continuing, (i) only the
Administrative Agent on behalf of the Lenders may exercise rights of the
Administrative Agent and the Lenders under this Section 6.10 and (ii)
only one such visit shall be at the Borrower’s expense; provided  further
that when an Event of Default exists and is continuing, the Administrative
Agent or any Lender (or any of their respective representatives or independent
contractors) may do any of the foregoing at the expense of the Borrower at any
time during normal business hours and upon reasonable advance notice and (b)
host a telephonic meeting annually with Lenders to discuss the Borrower’s
affairs, finances and accounts with the Borrower’s directors, officers, and
independent public accountants, all at the expense of the Borrower. .

 

6.11.       Use of Proceeds. Use the proceeds of the Credit
Extensions on the Closing Date to consummate the Transactions and, thereafter,
use the proceeds of Credit Extensions under the Revolving Credit Facility for
general corporate purposes not in contravention of any Law or of any Loan
Document.

 

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6.12.       Covenant to Guarantee Obligations and
Give Security.

 

(a)           Upon the formation or acquisition of
any new direct or indirect Subsidiary by any Loan Party, then the Borrower
shall, at the Borrower’s expense:

 

(i)            within 30 days
after such formation or acquisition, cause such Subsidiary (other than an
Excluded Subsidiary or a CFC), and cause each direct and indirect parent of
such Subsidiary (other than an Excluded Subsidiary or a CFC) (if it has not
already done so), to duly execute and deliver to the Administrative Agent a
guaranty or guaranty supplement, in form and substance reasonably satisfactory
to the Administrative Agent, guaranteeing the other Loan Parties’ obligations
under the Loan Documents,

 

(ii)           within 30 days after such
formation or acquisition, furnish to the Administrative Agent a description of
the real and personal properties (other than any Excluded Property) of such
Subsidiary (other than an Excluded Subsidiary or a CFC),

 

(iii)          within 45 days after such formation or
acquisition, cause (A) such Subsidiary (other than an Excluded Subsidiary or a
CFC) to duly execute and deliver to the Administrative Agent deeds of trust,
trust deeds, deeds to secure debt, mortgages (but only with respect to owned real
property with a fair market value in excess of $4,000,000), Joinder Agreements,
intellectual property security agreement supplements and other security and
pledge agreements, as specified by and in form and substance reasonably
satisfactory to the Administrative Agent (including delivery of all Pledged
Securities by such Subsidiary, and other instruments of the type specified in Section
4.01(a)(iii)) and (B) each direct and indirect parent of such Subsidiary
(other than an Excluded Subsidiary) to
deliver all Pledged Securities of such Subsidiary (other than an Excluded
Subsidiary) to the Administrative Agent, in each case, securing payment of all
the Obligations of such Subsidiary or such parent, as the case may be, under
the Loan Documents and constituting Liens on all such real and personal
properties; provided that the direct or indirect parent of any CFC shall
not be required to deliver Equity Interests of such CFC which represent more
than 65% of the total voting power of all Equity Interests of such CFC,

 

(iv)          within 60 days after
such formation or acquisition, deliver to the Administrative Agent, upon the
request of the Administrative Agent in its sole discretion, a signed copy of a
favorable opinion, addressed to the Administrative Agent and the other  Secured
Parties, of counsel for the Loan Parties acceptable to the Administrative Agent
as to the matters contained in clauses (i) and (iii) above, and as to such
other matters as the Administrative Agent may reasonably request, and

 

(b)           Upon the acquisition of any real property with a
fair market value in excess of $4,000,000 (but excluding any leasehold estate)
by any Loan Party, if such real property, in the judgment of the Administrative
Agent, shall not already be subject to a perfected first priority security
interest in favor of the Administrative Agent for the benefit of the Secured
Parties, then the Borrower shall, at the Borrower’s expense:

 

87

 

(i)              within 30 days
after such acquisition, furnish to the Administrative Agent a description of
the real property so acquired in detail satisfactory to the Administrative Agent,

 

(ii)             within 30 days after such
acquisition, cause the applicable Loan Party to duly execute and deliver to the
Administrative Agent deeds of trust, trust deeds, deeds to secure debt, and
mortgages, as specified by and in form and substance (but only with respect to
real properties with a fair market value in excess of $4,000,000) satisfactory
to the Administrative Agent, securing payment of all the Obligations of the
applicable Loan Party under the Loan Documents and constituting Liens on all
such properties,

 

(iii)            within 45 days after such
acquisition, cause the applicable Loan Party to take whatever action (including
the recording of mortgages, the filing of Uniform Commercial Code financing
statements, the giving of notices and the endorsement of notices on title
documents) may be necessary in the reasonable opinion of the Administrative
Agent to vest in the Administrative Agent (or in any representative of the
Administrative Agent designated by it) valid and subsisting Liens on such
property enforceable against all third parties, and

 

(iv)            within 60 days after such
acquisition, deliver to the Administrative Agent, upon the request of the
Administrative Agent in its sole discretion, a signed copy of a  favorable
opinion, addressed to the Administrative Agent and the other Secured Parties,
of counsel for the Loan Parties reasonably acceptable to the Administrative
Agent as to the matters contained in clauses (ii) and (iii) above, and as to
such other matters as the Administrative Agent may reasonably request.

 

(c)             At any time upon
the reasonable request of the Administrative Agent, promptly execute and
deliver any and all further instruments and documents and take all such other
action as the Administrative Agent may deem reasonably necessary in obtaining
the full benefits of, or (as applicable) in perfecting and preserving the Liens
of, such guaranties, deeds of trust, trust deeds, deeds to secure debt,
mortgages, Joinder Agreements, intellectual property security agreement
supplements and other security and pledge agreements; provided that
notwithstanding the foregoing, the preceding requirements of this Section
6.12 shall not apply to any Excluded Property.

 

6.13.       Compliance with Environmental Laws.
Comply, and take commercially reasonable steps to cause all lessees and other
Persons operating or occupying its properties to comply, in all material
respects, with all applicable Environmental Laws and Environmental Permits;
obtain and renew all Environmental Permits necessary for its operations and
properties; and conduct any investigation, study, sampling and testing, and
undertake any cleanup, removal, remedial or other action necessary to remove
and clean up all Hazardous Materials from any of its properties where required
to do so pursuant to applicable Environmental Laws; provided, however,
that neither the Borrower nor any of its Subsidiaries shall be required to
undertake any such cleanup, removal, remedial or other action to the extent
that its obligation to do so is being contested in good faith and by proper
proceedings and appropriate reserves are being maintained with respect to such
circumstances in accordance with GAAP.

 

88

 

6.14.       Further Assurances. Promptly upon
the reasonable request by the Administrative Agent, or any Lender through the
Administrative Agent, (a) correct any material defect or error that may be
discovered in any Loan Document or in the execution, acknowledgment, filing or
recordation thereof, and (b) to execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register any and all such further
acts, deeds, certificates, assurances and other instruments as the
Administrative Agent may reasonably require from time to time in order to (i)
carry out more effectively the purposes of the Loan Documents, (ii) to the
fullest extent permitted by applicable law, subject any Loan Party’s or any of
its Subsidiaries’ properties, assets, rights or interests to the Liens now or
hereafter intended to be covered by any of the Collateral Documents, (iii)
perfect and maintain the validity, effectiveness and priority of any of the
Collateral Documents and any of the Liens intended to be created thereunder and
(iv) assure, convey, grant, assign, transfer, preserve, protect and confirm
more effectively unto the Secured Parties the rights granted or now or
hereafter intended to be granted to the Secured Parties under any Loan Document
or under any other instrument executed in connection with any Loan Document to
which any Loan Party or any of its Subsidiaries is or is to be a party, and
cause each of its Subsidiaries to do so.

 

6.15.       Interest Rate Hedging. No later than
the 180th day after the Closing Date, the Borrower shall enter into, and
maintain for three years after the Closing Date, Swap Contracts with Persons
and terms and conditions acceptable to the Administrative Agent that result in
at least 50% of the reasonably anticipated aggregate principal amount of
Holdings’ Indebtedness for borrowed money (other than Total Revolving Credit
Outstandings) projected to be outstanding through the third anniversary of the
Closing Date (taking into account any scheduled or projected repayment or
prepayments of such Indebtedness pursuant to or permitted under this Agreement)
being effectively subject to a fixed or maximum interest rate acceptable to the
Administrative Agent.

 

6.16.       Material Contracts. Perform and
observe all the terms and provisions of each Material Contract to be performed
or observed by it, maintain each such Material Contract in full force and
effect, and enforce each such Material Contract in accordance with its terms
and cause each of its Subsidiaries to do so, except, in any case, where the
failure to do so, either individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect.

 

6.17.       Designation of Unrestricted
Subsidiaries. Holdings’ board of directors may, at any time, designate any
Subsidiary that is acquired or created after the Closing Date as an
Unrestricted Subsidiary by prior written notice to the Administrative Agent; provided
that Holdings shall only be permitted to so designate a new Unrestricted
Subsidiary after the Closing Date and so long as (a) no Default or Event of
Default exists or would result therefrom, (b) such Subsidiary does not own any
capital stock or Indebtedness of, or own or hold a Lien on any property of,
Holdings or any other Subsidiary that is not a subsidiary of the Subsidiary to
be so designated, (c) such Unrestricted Subsidiary shall be capitalized (to the
extent capitalized by Holdings or any of its Subsidiaries) through Investments
permitted by, and in compliance with, Sections 7.03(i) or (k) with any assets
owned by such Unrestricted Subsidiary at the time of the initial designation
thereof to be treated as Investments pursuant to Section 7.03(i) or (k)
and (d) Holdings shall have been able to make a Restricted Payment in
accordance with Section 7.06(g)

 

89

 

in an amount
equal to the greater of (i) the aggregate of all investments made in such
Subsidiary and (ii) the fair market value of such Subsidiary; provided
that at the time of the initial Investment by Holdings or any of its
Subsidiaries in such Subsidiary, the Borrower shall designate such entity as an
Unrestricted Subsidiary in a written notice to the Administrative Agent.
Holdings may designate any Unrestricted Subsidiary to be a Subsidiary for
purposes of this Agreement (each, a “Subsidiary Redesignation”); provided
further that (i) such Unrestricted Subsidiary, both before and after
giving effect to such designation, shall be a wholly owned Subsidiary of
Holdings, (ii) no Default or Event of Default then exists or would occur as a
consequence of any such Subsidiary Redesignation, (iii)based on good faith
projections prepared by Holdings for the period from the date of the respective
Subsidiary Redesignation to the date that is one year thereafter, the
Consolidated Leverage Ratio shall be better than or equal to such level as
would be required to provide that no Default or Event of Default would exist
under Section 7.11 through the date that is one year from the date of
the respective Subsidiary. Redesignation, (iv) all representations and
warranties contained herein and in the other Loan Documents shall be true and
correct in all material respects with the same effect as though such
representations and warranties had been made on and as of the date of such
Subsidiary Redesignation (both before and after giving effect thereto), unless
stated to relate to a specific earlier date, in which case such representations
and warranties shall be true and correct in all material respects as of such
earlier date, (v) Holdings shall have delivered to the Administrative Agent an
officer’s certificate executed by a Responsible Officer, certifying to the best
of such officer’s knowledge, compliance with the requirements of preceding
clauses (i) through (iv), inclusive, and containing the calculations required
by the preceding clause (iii), and (vi) any Unrestricted Subsidiary subject to a
Subsidiary Redesignation may not thereafter be designated as an Unrestricted
Subsidiary.

 

6.18.       Post-Closing Covenant. To the
extent not delivered on the Closing Date, the Borrower shall, and shall cause
each relevant Loan Party to meet the following requirements within the time
frames specified below; provided that in each case, the Administrative
Agent may waive any requirement of this Section 6.18 in whole or in
part, or extend the number of days for compliance, subject to such terms and
conditions as the Administrative Agent may determine in its sole discretion:

 

(a)           The Borrower shall as expeditiously
as possible, but in no event later than 30 days after the Closing Date, deliver
to the Administrative Agent certificates or instruments representing or
evidencing the Pledged Securities with respect to the Equity Interests of
RiskMetrics (U.K.) Limited, RiskMetrics (Singapore) Pte Ltd., RiskMetrics Group
KK, 1 Corporate Governance Pty Ltd. and Institutional Shareholders Services Pty
Ltd., in each case, accompanied by instruments of transfer and stock powers
undated and endorsed in blank; and

 

(b)           The Borrower shall as expeditiously
as possible, but in no event later than 3 Business Days after the Closing Date,
deliver to the Administrative Agent certificates or instruments representing or
evidencing the Pledged Securities with respect to the Equity Interests of ISS Corporate
Services, Inc., accompanied by instrument of transfer and stock powers undated and endorsed in blank.

 

90

 

ARTICLE VII

NEGATIVE COVENANTS

 

So long as any
Lender shall have any Commitment hereunder, any Loan or other Obligation (other
than any contingent indemnification obligations) hereunder shall remain unpaid
or unsatisfied, or any Letter of Credit shall remain outstanding (unless Cash
Collateralized in an amount equal to 102.5% of the face amount thereof),
Holdings shall not, nor shall it permit any Subsidiary to, directly or
indirectly, and solely in the case of Section 7.17, Holdings shall not:

 

7.01.       Liens. Create, incur, assume or suffer to exist any
Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, or sign or file or suffer to exist under the Uniform
Commercial Code of any jurisdiction a financing statement that names the
Borrower or any of its Subsidiaries as debtor, or assign any accounts or other
right to receive income, other than the following:

 

(a)           Liens pursuant to any Loan Document
or any Second Lien Loan Document;

 

(b)           Liens existing on the date hereof and listed on Schedule
7.01(b) and any renewals or extensions thereof, provided that (i)
the property covered thereby is not changed, (ii) the amount secured or
benefited thereby is not increased except as contemplated by Section 7.02(e),
(iii) the direct or any contingent obligor with respect thereto is not changed,
and (iv) any renewal or extension of the obligations secured or benefited
thereby is permitted by Section 7.02(e);

 

(c)           Liens for taxes not yet due or which are being
contested in good faith and by appropriate proceedings, if adequate reserves
with respect thereto are maintained on the books of the applicable Person in
accordance with GAAP;

 

(d)           carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 45 days or which
are being contested in good faith and by appropriate proceedings, if adequate
reserves with respect thereto are maintained on the books of the applicable
Person;

 

(e)           pledges or deposits in the ordinary
course of business in connection with workers’ compensation, unemployment
insurance and other social security legislation, other than any Lien imposed by
ERISA;

 

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

 

(g)           easements, rights-of-way, restrictions and other
similar encumbrances affecting real property which, in the aggregate, are not
substantial in amount, and which do not in any case materially detract from the
value of the property subject thereto or materially interfere with the ordinary
conduct of the business of the applicable Person;

 

91

 

(h)           Liens securing judgments for the payment of money
not constituting an Event of
Default under Section 8.01(h);

 

(i)            Liens securing Indebtedness
permitted under Section 7.02(g); provided that such Liens do not
at any time encumber any property other than the property financed by such
Indebtedness;

 

(j)            (i) Liens on property of a Person
existing at the time such Person is merged into or consolidated with the
Borrower or any Subsidiary of the Borrower or becomes a Subsidiary of the
Borrower; provided that such Liens were not created in contemplation of
such merger, consolidation or investment and do not extend to any assets other than those of the Person merged into
or consolidated with the Borrower or such Subsidiary or acquired by the
Borrower or such Subsidiary; and (ii) Liens on property of a Person existing at
the time such property is purchased by the Borrower or any Subsidiary of the
Borrower in a transaction constituting a Permitted Acquisition; provided
that such Liens were not created in contemplation of such acquisition;;

 

(k)           leases, licenses, subleases or sublicenses granted
to others in the ordinary course of business that do not (i) interfere in any
material respect with the business of Holdings or any of its Subsidiaries or
(ii) secure any Indebtedness;

 

(1)           Liens
arising out of conditional sale, title retention, consignment or similar arrangements
for sale of goods entered into by Holdings or any of its Subsidiaries in the
ordinary course of business permitted by this Agreement;

 

(m)          the replacement, extension or renewal
of any Lien permitted by clauses (i) and (j) above upon or in the same property
theretofore subject thereto or the replacement, extension or renewal (without
increase in the amount or change in any direct or contingent obligor) of the
Indebtedness secured thereby;

 

(n)           zoning, entitlement and other similar
land use restrictions or regulations by any Governmental Authority;

 

(o)           any interest or title of a lessor or
sublessor under any lease not prohibited under the terms of the Loan Documents;

 

(p)           Liens on cash earnest money deposits made by Holdings or
any of its Subsidiaries in connection with any letter of intent or
purchase agreement;

 

(q)           Liens evidenced by the filing of
precautionary UCC financing statements relating solely to operating leases of
personal property entered into the ordinary course of business;

 

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

 

92

 

(s)            licenses of patents, trademarks and other
intellectual property rights granted by the Borrower or any of its Subsidiaries
in the ordinary course of business and not interfering in any respect with the
ordinary conduct of the business of the Borrower or such Subsidiary;

 

(t)            Liens arising by virtue of any
statutory or common law provision relating to bankers’ liens, rights of set-off
or similar rights;

 

(u)           escrow deposits of source codes in
the ordinary course of business in connection with licensing of intellectual
property by Borrower or any of its Subsidiaries to its customers; and

 

(v)           other Liens securing Indebtedness
outstanding in an aggregate principal amount not to exceed $10,000,000, provided
that no such Lien shall extend to or cover any Collateral.

 

7.02.       Indebtedness. Create, incur,
assume or suffer to exist any Indebtedness, except:

 

(a)           obligations (contingent or otherwise)
existing or arising under any Swap Contract, provided that (i) such
obligations are (or were) entered into by such Person in the ordinary course of
business for the purpose of directly mitigating risks associated with
fluctuations in interest rates or foreign exchange rates and (ii) such Swap
Contract does not contain any provision exonerating the non-defaulting party
from its obligation to make payments on outstanding transactions to the
defaulting party;

 

(b)           Indebtedness under the Second Lien Credit Agreement
in an aggregate principal amount of not more than $150,000,000 (plus the
aggregate amount of all incremental term loans incurred pursuant to Section
2.14 of the Second Lien Credit Agreement) at any time and refinancings,
repricing, amendments, amendments and restatements, waivers, modifications
and/or renewals thereof in compliance with the Intercreditor Agreement; provided
that, in the case of any replacement or refinancing after the date hereof, (x)
the Second Lien Administrative Agent shall enter into the Intercreditor
Agreement with the Administrative Agent, (y) the amount of such Indebtedness is
not increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to a reasonable premium or other reasonable amount
paid, accrued and unpaid interest in respect of the Indebtedness being repaid
and fees and expenses reasonably incurred, in connection with such refinancing
and by an amount equal to any existing commitments unutilized thereunder and
the direct or any contingent obligor with respect thereto is not changed, as a
result of or in connection with such refinancing, refunding, renewal or
extension, and (z) the Second Lien Loan Documents shall not include any
provisions, terms or conditions that would not be permitted, under Section
5.3of the Intercreditor Agreement, in any amendment of the Second Lien Loan
Documents;

 

(c)           Indebtedness of a Subsidiary of
Holdings owed to Holdings or a wholly owned Subsidiary of Holdings, which
Indebtedness shall (i) in the case of Indebtedness owed to a Loan Party,
constitute “Pledged Debt” under the Security Agreement, and (ii) be otherwise
permitted under the provisions of Section 7.03;

 

93

 

(d)           Indebtedness under the Loan
Documents;

 

(e)           Indebtedness outstanding on the date
hereof and listed on Schedule 7.02 and any Permitted Refinancing
thereof;

 

(f)            Guarantees of Holdings or any Subsidiary in
respect of Indebtedness otherwise permitted hereunder of the Borrower or any
wholly owned Subsidiary;

 

(g)           Indebtedness in respect of
Capitalized Leases, Synthetic Lease Obligations and purchase money obligations
for fixed or capital assets within the limitations set forth in Section
7.01(i); provided, however, that the aggregate amount of all
such Indebtedness at any one time outstanding shall not exceed $20,000,000;

 

(h)           Indebtedness of any Person that becomes a
Subsidiary of the Borrower after the date hereof in accordance with the terms
of Section 7.03(h), which Indebtedness is existing at the time such
Person becomes a Subsidiary of the Borrower (other than Indebtedness incurred
solely in contemplation of such Person’s becoming a Subsidiary of the Borrower)
and any Permitted Refinancing thereof;

 

(i)            Indebtedness of Holdings and its Subsidiaries (i)
assumed in connection with any Permitted Acquisition, provided that such
Indebtedness is not incurred in contemplation of such Permitted Acquisition, or
(ii) owed to the seller of any property acquired in a Permitted Acquisition on
an unsecured subordinated (relative to the Loan Documents) basis and any
Permitted Refinancing thereof;

 

(j)            Indebtedness representing deferred
compensation to employees of Holdings and its Subsidiaries incurred in the
ordinary course of business;

 

(k)           Indebtedness incurred by Holdings or
its Subsidiaries in a Permitted Acquisition or Disposition under agreements
providing for indemnification;

 

(l)            Indebtedness in respect of netting services,
overdraft protections and similar arrangements in each case in connection with
deposit accounts;

 

(m)          Indebtedness incurred by Holdings or
any of its Subsidiaries constituting reimbursement obligations with respect to
letters of credit, bank guarantees or similar instruments issued in respect of
workers compensation claims, health, disability or other employee benefits or
property, casualty or liability insurance or self-insurance or other
Indebtedness with respect to similar reimbursement type obligations; provided
that upon the drawing of such letters of credit or the incurrence of such
Indebtedness, such obligations are reimbursed within 30 days following such
drawing or incurrence;

 

(n)           Indebtedness of CFCs owed to Holdings
or any Subsidiary of Holdings incurred in the ordinary course of business and
substantially consistent with past practice;

 

(o)           unsecured Indebtedness in an
aggregate principal amount not to exceed $25,000,000 at any time outstanding;
and

 

94

 

(p)           to the extent constituting Indebtedness, contingent
obligations under or in respect of performance bonds, bid bonds, appeal bonds,
surety bonds, financial assurances, completion guarantees, indemnification
obligations, obligations to pay insurance premiums, take or pay obligations and
similar obligations in each case incurred in the ordinary course of business
and not in connection with debt for borrowed money.

 

It is understood and agreed
that any Indebtedness borrowed in a foreign currency shall continue to
be permitted under this Section 7.02, notwithstanding any fluctuation in
the Dollar amount of such Indebtedness, as long as the outstanding principal balance
of such Indebtedness (denominated in its original currency) does not exceed the
maximum amount of such Indebtedness (denominated in such currency) permitted to
be outstanding on the date such Indebtedness was incurred.

 

7.03.       Investments. Make or hold any Investments, except:

 

(a)           Investments held by the Borrower and
its Subsidiaries in the form of Cash Equivalents;

 

(b)           (i) loans and advances to officers, directors and
employees of Holdings and its Subsidiaries in an aggregate amount not to
exceed $2,000,000 at any time outstanding, for travel, entertainment,
relocation and analogous ordinary business purposes and (ii) loans and advances
to directors, employees and officers of Holdings and its Subsidiaries in
connection with the purchase of Equity Interests of Holdings by such directors,
employees or officers not to exceed $2,000,000 at any time outstanding;

 

(c)           (i) Investments by Holdings and its Subsidiaries in
their respective Subsidiaries outstanding on the date hereof, (ii) additional
Investments by Holdings and its Subsidiaries in Loan Parties (other than
Holdings), (iii) additional Investments by Subsidiaries of Holdings that are
not Loan Parties in other Subsidiaries that are not Loan Parties and (iv)
additional Investments by Loan Parties and Subsidiaries that are not Loan
Parties in CFCs in the ordinary course of business and substantially consistent
with past practice;

 

(d)           (i) Investments consisting of
extensions of credit in the nature of accounts receivable or notes receivable
arising from the grant of trade credit in the ordinary course of business, and
Investments received in satisfaction or partial satisfaction thereof from
financially troubled account debtors to the extent reasonably necessary in
order to prevent or limit loss and (ii) Investments received in satisfaction of
judgments or pursuant to any plan of reorganization or similar arrangement upon
the bankruptcy or insolvency of trade creditors or account debtors;

 

(e)           Guarantees and Indebtedness permitted
by Section 7.02; 

 

(f)            Investments existing on the date
hereof and set forth on Schedule 7.03(f);

 

(g)           Investments by the Borrower in Swap Contracts
permitted under Section
7.02(a);

 

95

 

(h)           the purchase or other acquisition of
all of the Equity Interests in, or all or substantially all of the property of,
any Person or of assets constituting a business unit, line of business or
division of such Person that, upon the consummation thereof, will be
wholly-owned directly by the Borrower or one or more of its wholly owned
Subsidiaries (including as a result of a merger or consolidation); provided
that, with respect to each purchase or other acquisition made pursuant to this Section
7.03(h) (each, a “Permitted Acquisition”):

 

(i)            any such newly-created
or acquired Subsidiary shall comply with the requirements of Section 6.12;

 

(ii)           (A) immediately before and
immediately after giving pro forma effect to any such purchase or other
acquisition, no Default shall have occurred and be continuing and (B)
immediately after giving effect to such purchase or other acquisition, Holdings
and its Subsidiaries shall be in pro forma compliance with all of the covenants
set forth in Section 7.11, such compliance to be determined on the basis
of the financial information most recently delivered to the Administrative
Agent and the Lenders pursuant to Section 6.01(a) or (b) as though such purchase
or other acquisition had been consummated as of the first day of the fiscal
period covered thereby;

 

(iii)          immediately after giving pro
forma effect to any such purchase or other acquisition, the Borrower shall have
availability under the Revolving Credit Facility together with unrestricted
cash on hand in an aggregate amount of at least $10,000,000; and

 

(iv)          the Borrower shall
have delivered to the Administrative Agent and each Lender, at least five
Business Days prior to the date on which any such purchase or other acquisition
is to be consummated, a certificate of a Responsible Officer, in form and
substance reasonably satisfactory to the Administrative Agent, certifying that
all of the requirements set forth in this clause (h) have been satisfied or
will be satisfied on or prior to the consummation of such purchase or other
acquisition;

 

(i)            Investments by the Borrower and its
Subsidiaries in Joint Ventures; provided that,
immediately before and after giving effect to such investment, no Default or
Event of Default shall have occurred and be continuing, and the aggregate
amount of all Investments pursuant to this clause (i) shall not exceed
$1,000,000 in the aggregate outstanding at any time;

 

(j)            Investments made or received as
consideration received in connection with a Disposition permitted by Section
7.05(j) not to exceed $1,000,000 in the aggregate outstanding at any time;
and

 

(k)           Investments by Holdings and its
Subsidiaries not otherwise permitted under this Section 7.03 in an
aggregate amount not to exceed $10,000,000.

 

7.04.       Fundamental Changes. Merge,
dissolve, liquidate, consolidate with or into another Person, or Dispose of
(whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or
in favor of any Person, except that, so long as no Default exists or would
result therefrom:

 

96

 

(a)           any Subsidiary may merge with (i) the Borrower, provided
that the Borrower shall be the continuing or surviving Person, or (ii) any one
or more other Subsidiaries, provided that when any wholly owned
Subsidiary is merging with another Subsidiary, such wholly owned Subsidiary
shall be the continuing or surviving Person;

 

(b)           any Loan Party may Dispose of all or substantially
all of its assets (upon voluntary liquidation or otherwise) to the Borrower or
to another Loan Party (other than Holdings);

 

(c)           any Subsidiary that is not a Loan
Party may dispose of all or substantially all its assets (including any
Disposition that is in the nature of a liquidation) to (i) another Subsidiary
that is not a Loan Party or (ii) to a Loan Party;

 

(d)           the Borrower and its Subsidiaries may consummate
the Merger;

 

(e)           in connection with any Permitted
Acquisition, any Subsidiary of the Borrower may merge into or consolidate with
any other Person or permit any other Person to merge into or consolidate with
it; provided that (i) the Person surviving such merger shall be a wholly
owned Subsidiary of the Borrower and (ii) in the case of any such merger to
which any Loan Party (other than the Borrower) is a party, such Loan Party is
the surviving Person; and

 

(f)            so long as no Default has occurred
and is continuing or would result therefrom, any Subsidiary of the Borrower may
merge into or consolidate with any other Person or permit any other Person to
merge into or consolidate with it; provided, however, that in
each case, immediately after giving effect thereto (i) in the case of any such
merger to which the Borrower is a party, the Borrower is the surviving
corporation and (ii) in the case of any such merger to which any Loan Party
(other than the Borrower) is a party, such Loan Party is the surviving corporation.

 

7.05.       Dispositions. Make any Disposition
or enter into any agreement to make any Disposition, except:

 

(a)           Dispositions of damaged, obsolete or
worn out property or property that is no longer useful or useable in its
business, whether now owned or hereafter acquired, in the ordinary course of
business;

 

(b)           Dispositions of inventory, product,
accounts receivable or other assets or services in the ordinary course of business
and the granting of any option or other right to purchase, lease or otherwise
acquire inventory, products, equipment, accounts receivables or other assets or
services in the ordinary course of business;

 

(c)           Dispositions of equipment or real
property to the extent that (i) such property is exchanged for credit against
the purchase price of similar replacement property or (ii) the proceeds of such
Disposition are reasonably promptly applied to the purchase price of such
replacement property;

 

97

 

(d)           Dispositions of property by any Subsidiary to the
Borrower or to a wholly owned Subsidiary; provided that if the
transferor of such property is a Guarantor, the transferee thereof must either
be the Borrower or a Guarantor;

 

(e)           Dispositions permitted by Section
7.04;

 

(f)            non-exclusive licenses of Owned
Intellectual Property in the ordinary course of business and substantially
consistent with past practice;

 

(g)           the sale or other disposition of Cash
Equivalents;

 

(h)           Dispositions of accounts receivable in connection
with the compromise, settlement or collection thereof in the ordinary course of
business or in bankruptcy or similar proceedings;

 

(i)            any issuance or, or disposition in
connection with, directors’ qualifying shares or investments by foreign
nationals mandated by foreign law; and

 

(j)            other Dispositions by Holdings and
its Subsidiaries for at least 90% cash (provided that the following shall
constitute cash for purposes of this clause: (i) any liabilities (as shown on
Holdings or its Subsidiaries’ most recent balance sheet) of Holdings and its
Subsidiaries (other than contingent liabilities and subordinated Indebtedness)
that are assumed by the transferee in connection with such Disposition whereby
Holdings or such Subsidiary is released from further liability therefor and
(ii) any securities, notes or other obligations received by Holdings or any
Subsidiary from such transferee that are converted, sold or exchanged within
180 days of their receipt by Holdings or such Subsidiary into cash (to the
extent of the cash received in that conversion)) and for fair value in an
aggregate amount not to exceed $15,000,000 in any fiscal year.

 

7.06.       Restricted Payments. Declare or
make, directly or indirectly, any Restricted Payment, except that:

 

(a)           each Subsidiary may make Restricted
Payments to the Borrower, any Subsidiaries of the Borrower that are Guarantors and any other
Person that owns a direct Equity Interest in such Subsidiary, ratably according
to their respective holdings of the type of Equity Interest in respect of which
such Restricted Payment is being made;

 

(b)           each Subsidiary of Holdings may declare and make
dividend payments or other distributions payable solely in the common stock or
other common Equity Interests of such Person;

 

(c)           so long as no Default shall have
occurred and be continuing or would result therefrom, the Borrower and
each Subsidiary may purchase, redeem or otherwise acquire its common Equity
Interests with the proceeds received from the substantially concurrent issue of
new common Equity Interests;

 

98

 

(d)           the Borrower may
declare and pay cash dividends to Holdings not to exceed an amount necessary to
permit Holdings to pay (i) reasonable and customary corporate and operating
expenses (including reasonable out-of-pocket expenses for legal, administrative
and accounting services provided by third parties, and compensation, benefits
and other amounts payable to officers and employees in connection with their
employment in the ordinary course of business and to board of director
observers), (ii) franchise fees or similar taxes and fees required to maintain
Holdings’ corporate existence, (iii) Holdings’ proportionate share of the tax
liability of the affiliated group of corporations that file consolidated
Federal income tax returns (or that file state and local income tax returns on
a consolidated basis) and (iv) so long as no Default shall have occurred and be
continuing below or would result therefrom, customary investment banking fees
and other amounts in connection with any Public Offering;

 

(e)           so long as no Event
of Default shall have occurred and be continuing or would result therefrom,
Holdings and the Borrower may make Restricted Payments for the purpose of
enabling Holdings to purchase Equity Interests (i) from present or former
officers or employees of Holdings or any of its Subsidiaries and (ii) from any
Person that received shares of Holdings’ Equity Interests as all or a portion
of the consideration in a Permitted Acquisition; provided that the
aggregate amount of payments under this clause (e) after the date hereof (net
of any proceeds received by Holdings and contributed to Borrower after the date
hereof in connection with resales of any Equity Interests so purchased) (A)
shall not exceed (1) $7,000,000 for the fiscal year ended December 31, 2007 and
(2) $5,000,000 for each fiscal year thereafter; provided, further
that any unused amount in any fiscal year may be used in the next succeeding
fiscal year and (B) shall not exceed $25,000,000 in the aggregate since the
Closing Date; plus in each case, any amount
received by Holdings from the sale of Equity Interests (other than Disqualified
Capital Stock) of Holdings from officers and employees which amount is contributed
to the Borrower;

 

(f)            in addition to clause (e) above, so
long as no Event of Default shall have occurred and be continuing or would
result therefrom, Holdings and the Borrower may make Restricted Payments not to
exceed $3,000,000 in any fiscal year of Holdings for the purpose of, enabling
Holdings to purchase Equity Interests (i) from present or former officers or
employees of Holdings or any of its
Subsidiaries and. (ii) from any Person that received shares of Holdings’ Equity
Interests as all or a portion of the consideration in a Permitted Acquisition; provided
that after giving effect to such Restricted Payment on a pro forma basis,
Holdings’ Consolidated Leverage Ratio is not greater than 4.75:1.00;

 

(g)           so long as no Default shall
have occurred and be continuing or would result therefrom, Holdings, the
Borrower and each Subsidiary may (A) declare and make dividend payments or
other distributions and (B) make Restricted Payments for the purpose of enabling Holdings to purchase Equity
Interests (i) from present or former officers or employees of Holdings
or any of its Subsidiaries and (ii) from any Person that received shares of
Holdings’ Equity Interests as all or a portion of the consideration in a
Permitted Acquisition, in a collective amount not to exceed 50% of Excess Cash
Flow (less the amount of any expenditures excluded from the definition of “Capital
Expenditures” pursuant to clause (a) of the proviso in such definition)
in the aggregate and for the period beginning with the fiscal quarter in which
Holdings’ Consolidated Leverage Ratio is less than 6.25:1.00; provided
that, in the case of clause

 

99

 

(A), after
giving effect to such dividend or distribution on a pro forma basis, Holdings’
Consolidated Leverage Ratio is not greater than 3.75:1.00, and in the case of
clause (B), after giving effect to such purchase of Equity Interests on a pro
forma basis, Holdings’ Consolidated Leverage Ratio is not greater than
4.75:1.00; and

 

(h)           in addition to clause (g) above but without
duplication of clause (c) above, so long as no Event of Default shall have
occurred and be continuing or would result therefrom, Holdings, the Borrower
and each Subsidiary may declare and make dividend payments or other
distributions in an amount not to exceed 50% of the net cash proceeds received
by the Borrower from Holdings’ initial Public Offering; provided that,
in each case, after giving effect to such dividend or distribution on a pro
forma basis, Holdings’ Consolidated Leverage Ratio is not greater than
3.75:1.00.

 

7.07.       Change in Nature of Business. Engage
in any material line of business substantially different from those lines of
business conducted by the Borrower and its Subsidiaries on the date hereof or
any business substantially related or incidental thereto.

 

7.08.       Transactions with Affiliates. Enter
into any transaction of any kind with any Affiliate of the Borrower, whether or
not in the ordinary course of business, other than on fair and reasonable terms
substantially as favorable to the Borrower or such Subsidiary as would be
obtainable by the Borrower or such Subsidiary at the time in a comparable arm’s
length transaction with a Person other than an Affiliate; provided that
the foregoing restriction shall not apply to:

 

(a)           transactions between or among the
Loan Parties (other than Holdings) or any Person that will become a Loan Party
as a result of such transaction;

 

(b)           the payment of fees and expenses in connection with
the consummation of the Merger and the other Transactions;

 

(c)           contracts or agreements and
transactions with customers, clients, suppliers or purchasers and sellers of
goods or services, in each case, in the ordinary course of business and
otherwise not prohibited by the terms of this Agreement, which are fair to
Holdings or its Subsidiaries or are on terms, taken as a whole, at least as
favorable as might reasonably have been obtained at that time from a Person who
is not an Affiliate of the Borrower;

 

(d)           employment and severance arrangements
between Holdings and its Subsidiaries and their respective officers and
employees in the ordinary course of business or in connection with the Merger;

 

(e)           the payment of customary fees and
reasonable out-of-pocket costs to, and indemnities provided on behalf of,
directors, officers, employees and consultants of Holdings and its Subsidiaries
in the ordinary course of business, as determined in good faith by the board of
directors of the Borrower or senior management thereof;

 

(f)            customary shareholder and registration rights
agreements among Holdings and its shareholders; and

 

100

 

(g)           Restricted Payments permitted under Section
7.06.

 

7.09.       Burdensome Agreements. Enter into
or permit to exist any Contractual Obligation (other than this Agreement or any
other Loan Document) that limits the ability of any Subsidiary to make
Restricted Payments to the Borrower or any Guarantor or to otherwise transfer
property to or invest in the Borrower or any Guarantor, provided that the
foregoing shall not be violated by reason of: (A) the Loan Documents, (B) any
agreement or instrument evidencing any Indebtedness permitted to be incurred
under Sections 7.02(b), 7.02(e), 7.02(g), 7.02(h)
or 7.02(i) or any Indebtedness issued, assumed or incurred to refinance
any of the foregoing, (C) any agreement in effect as of the date hereof, (D)
any agreement in effect at the time a Person first became a Subsidiary of the
Borrower so long as such agreement has not been entered into solely in
contemplation of such Person becoming a Subsidiary, (E) applicable law, rule, regulation or order including of any
regulatory body, (F) customary restrictions on subletting, assignment or
transfer of any property or asset contained in a lease, license, conveyance or
contract or similar property or asset, (G) any Lien permitted under the terms
of Section 7.01, (H) customary restrictions in Contractual Obligations
entered into in the ordinary course of business; provided
that any such limitations contained therein relate only to such agreements and
that any such limitations, individually or in the aggregate, shall not
materially affect any Loan Party’s ability to pay its Obligations under the
Loan Documents, (I) restrictions (1) arising or agreed to in the ordinary
course of business, not relating to any Indebtedness, and that do not,
individually or in the aggregate detract from the value of property or assets
of Holdings or any Subsidiary thereof, (2) existing under, by reason of, or
with respect to, any agreement for the sale or other disposition of all or
substantially all of the Equity Interests in, or property and assets of, a
Subsidiary that restricts distributions by the Subsidiary pending such sale or
other disposition, (3) that are or were created by virtue of any transfer of,
agreement to transfer or option or right with respect to any property, assets
or Equity Interests not otherwise prohibited under this Agreement or (4)
existing under restrictions on cash or other deposits or net worth tests
imposed by customers or required by insurance, surety or bonding companies, (J)
encumbrances on the assets or Equity Interests of CFCs pursuant to Indebtedness
of CFCs permitted to be incurred under this Agreement; provided that (1)
such encumbrances are ordinary and customary with respect to the type of
Indebtedness being incurred and (2) such encumbrances will not affect the
Borrower’s ability to make payments of principal or interest on the Loans, as
determined in good faith by the board of directors of the Borrower and (K)
provisions in joint venture agreements, partnership agreements, limited
liability organizational documents and other similar agreements and documents
that restrict (1) the transfer of ownership interests in such entity that was
not entered into solely in contemplation of such Person becoming a Subsidiary
of the Borrower or (2) the ability of the Borrower or any Subsidiary to create,
incur, assume or suffer to exist Liens on property of such Person.

 

7.10.       Use of Proceeds. Use the proceeds
of any Credit Extension, whether directly or indirectly, and whether immediately,
incidentally or ultimately, to purchase or carry margin stock (within the
meaning of Regulation U of the FRB) or to extend credit to others for the
purpose of purchasing or carrying margin stock or to refund indebtedness
originally incurred for
such purpose.

 

101

 

7.11.       Consolidated Leverage Ratio.
Permit the Consolidated Leverage Ratio at any time during any period of four
fiscal quarters of Holdings set forth below to be greater than the ratio set
forth below opposite such period:

 

	
  Four Fiscal Quarters Ending

  	
   

  	
  Maximum 

  Consolidated 

  Leverage Ratio

  
	
  June 30, 2007

  	
   

  	
  8.25:1.00

  
	
  September 30, 2007

  	
   

  	
  7.75:1.00

  
	
  December 31, 2007

  	
   

  	
  7.00:1.00

  
	
  March 31, 2008

  	
   

  	
  6.75:1.00

  
	
  June 30,
  2008

  	
   

  	
  6.25:1.00

  
	
  September30,2008

  	
   

  	
  5.75:1.00

  
	
  December 31, 2008

  	
   

  	
  5.25:1.00

  
	
  March 31,
  2009

  	
   

  	
  5.00:1.00

  
	
  June 30,
  2009

  	
   

  	
  4.50:1.00

  
	
  September 30, 2009

  	
   

  	
  4.25:1.00

  
	
  December 31, 2009

  	
   

  	
  4.00:1.00

  
	
  March 31,
  2010

  	
   

  	
  3.75:1.00

  
	
  June 30,
  2010

  	
   

  	
  3.50:1.00

  
	
  September 30, 2010

  	
   

  	
  3.25:1.00

  
	
  December 31,
  2010 and thereafter

  	
   

  	
  3.00:1.00

  

 

7.12.       Capital Expenditures. Make or
become legally obligated to make any Capital Expenditure, except for Capital
Expenditures in the ordinary course of business not exceeding, in the aggregate
for Holdings and its Subsidiaries during each fiscal year set forth below, the
amount set forth opposite such fiscal year:

 

	
  Fiscal Year

  	
   

  	
  Amount

  	
   

  
	
  2007

  	
   

  	
  $

  	
  11,700,000

  	
   

  
	
  2008

  	
   

  	
  $

  	
  11,700,000

  	
   

  
	
  2009

  	
   

  	
  $

  	
  12,600,000

  	
   

  
	
  2010

  	
   

  	
  $

  	
  14,000,000

  	
   

  
	
  2011

  	
   

  	
  $

  	
  15,400,000

  	
   

  
	
  2012

  	
   

  	
  $

  	
  15,400,000

  	
   

  
	
  2013

  	
   

  	
  $

  	
  17,000,000

  	
   

  

 

; provided,
however, that so long as no Default has occurred and is continuing or
would result from such expenditure, any portion of any amount set forth above,
if not expended in the fiscal year for which it is permitted above, may be
carried over for expenditure in the next following fiscal year; and provided,
further, if any such amount is so carried over, it will be deemed used
in the applicable subsequent fiscal year before the amount set forth opposite
such fiscal year above.

 

7.13.       Amendments of Organization Documents.
Amend any of its Organization Documents other than any changes which are not
materially adverse to the Administrative Agent and the Lenders.

 

102

 

7.14.       Accounting Changes. Make any
change in (a) accounting policies or reporting practices, except as required or
permitted by GAAP or the Financial Accounting Standards Board and as otherwise
not materially adverse to the Lenders, or (b) fiscal year.

 

7.15.       Prepayments, Etc. of Indebtedness.
Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled
maturity thereof in any manner, or make any payment in violation of any
subordination terms of, any Indebtedness, except (a) the prepayment of the Credit Extensions in accordance with the
terms of this Agreement and (b) regularly scheduled or required
repayments or redemptions of Indebtedness set forth in Schedule 7.02 and
refinancings and refundings of such Indebtedness in compliance with Sections7.02(e)
and (c) any Net Cash Proceeds in accordance with Section 2.05(c) and the
mandatory prepayment provisions of the Second Lien Credit Agreement and (d)
prepayments of Second Lien Loans in accordance with the terms of the Second
Lien Credit Agreement (x) not to exceed cumulative Excess Cash Flow (less (i)
the amount of any expenditures excluded from the definition of “Capital
Expenditures” pursuant to clause (a) of the proviso in such definition,
(ii) the aggregate amount of Restricted Payments made pursuant to Section
7.06(g) and (iii) the aggregate amount applied to prepay Loans pursuant to
Section 2.05(b)(i) or, with respect to the any fiscal year for which a
prepayment of Loans pursuant to Section 2.05(b)(i) is not yet due and payable,
that would be required to prepay Loans pursuant to Section 2.05(b)(i) on the
basis of Excess Cash Flow accumulated during such fiscal year and Holdings’
Consolidated Leverage Ratio through or as of the date of any proposed
prepayment of Second Lien Loans) in the aggregate or (y) so long as after
giving effect to such prepayment or a pro forma basis, Holdings’ Consolidated
Leverage Ratio is not greater than 3.75:1.00.

 

7.16.       Amendment, Etc. of Second Lien Loan
Documents and Indebtedness. (a) Cancel or terminate any Second Lien Loan
Document or consent to or accept any cancellation or termination thereof, (b)
amend, modify or change in any manner any term or condition of any Second Lien
Loan Document or give any consent, waiver or approval thereunder, (c) waive any
default under or any breach of any term or condition of any Second Lien Loan
Document, (d) take any other action in connection with any Second Lien Loan
Document that would impair the value of the interest or rights of any Loan
Party thereunder or that would impair the rights or interests of the
Administrative Agent or any Lender or (e) amend, modify or change in any manner
any term or condition of any Indebtedness set forth in Schedule 7.02,
except for any refinancing, refunding, renewal or extension thereof permitted
by Section 7.02(e) or the Intercreditor Agreement.

 

7.17.       Holding Company. In the case of
Holdings, engage in any business or activity other than (a) the ownership of
all outstanding Equity Interests in the Borrower, (b) maintaining its corporate
existence, (c) participating in tax, accounting and other administrative
activities as the parent of the consolidated group of companies, including the
Loan Parties, (d) the execution and delivery of the Loan Documents to which it
is a party and the performance of its obligations thereunder, (e) any public
offering of its common stock or any other issuance or registration of its
Equity Interests or stock appreciation rights, (f) any transaction that
Holdings is permitted to enter into or consummate under this Article VII,
(g) incurring fees, costs and expenses relating to overhead and general
operating including professional fees for legal, tax and accounting issues, (h)
providing indemnification to officers and directors, (i) activities

 

103

 

contemplated
by Section 7.06 and (j) activities incidental to the businesses or activities
described in clauses (a) through (h) of this Section 7.17.

 

7.18.        General Partner.
No Loan Party shall become a general partner, either directly or indirectly in
any partnership (other than through a separate Subsidiary of Holdings in
compliance with Sections 7.02 and 7.03).

 

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

 

8.01.       Events of Default. Any of the
following shall constitute an “Event of Default”:

 

(a)           Non-Payment. The Borrower or any other Loan
Party fails to (i) pay when and as required to be paid herein, any amount of
principal of any Loan or any L/C Obligation or deposit any funds as cash
collateral in respect of L/C Obligations, or (ii) pay within three days after
the same becomes due, any interest on any Loan or on any L/C Obligation, or any
fee due hereunder, or (iii) pay within five days after the same becomes due,
any other amount payable hereunder or under any other Loan Document; or

 

(b)           Specific Covenants. The
Borrower fails to perform or observe any term, covenant or agreement contained
in any of Sections 6.01, 6.02(a),  6.02(b), 6.03(a), 6.03(b),
6.10,  6.11,  6.12,  6.14,  6.17 or Article
VII; or

 

(c)           Other Defaults. Any Loan Party
fails to perform or observe any other covenant or agreement (not specified in Section
8.01 (a) or (b) above) contained in any Loan Document on its part to be
performed or observed and such failure continues for 60 days after the earlier
of the date on which (i) any Responsible Officer of a Loan Party becomes aware
of such failure or (ii) written notice thereof shall have been given to the
Borrower by the Administrative Agent or the Required Lenders; or

 

(d)           Representations and Warranties.
Any representation, warranty, certification or statement of fact made or deemed
made by or on behalf of the Borrower or any other Loan Party herein, in any
other Loan Document, or in any document delivered in connection herewith or
therewith shall be incorrect or misleading, in the case of any representation,
warranty, certification or statement qualified by materially or a Material
Adverse Effect, when made or deemed made and otherwise in any material respect
when made or deemed made; provided that (i) if such Loan Party was not
aware that such representation or warranty was false or incorrect at the time
such representation or warranty was made, (ii) the fact, event or circumstance
resulting in such false or incorrect representation or warranty is capable of
being cured, corrected or otherwise remedied without any adverse consequence to
the Lenders, and (iii) such fact, event or circumstance resulting in such false
or incorrect representation or warranty shall have been cured, corrected or
otherwise remedied without any adverse consequence to the Lenders within 30
days from the date a Responsible Officer of the Borrower or any Loan Party
obtains actual knowledge thereof such that such representation or warranty (as
cured, corrected or
remedied) would not reasonably be expected to result in a Material Adverse
Effect, then such

 

104

 

false or
incorrect representation or warranty shall not constitute a Default or an Event
of Default for purposes of the Loan Documents; or

 

(e)           Cross-Default. (i) Any Loan
Party or any Significant Subsidiary or one or more Subsidiaries that in the
aggregate would constitute a Significant Subsidiary thereof (A) fails to make
any payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee
(other than Indebtedness hereunder and Indebtedness under Swap Contracts) having
an aggregate principal amount (including undrawn committed or available amounts
and including amounts owing to all creditors under any combined or syndicated
credit arrangement) of more than the Threshold Amount and such failure shall
continue after the applicable grace period, if any, specified in the agreement
or instrument relating to such Indebtedness, or (B) fails to observe or perform
any other agreement or condition relating to any such Indebtedness or Guarantee
or contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event occurs, the effect of which default or other event
is to cause, or to permit the holder or holders of such Indebtedness or the
beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf
of such holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such Indebtedness to be demanded or to become due
or to be repurchased, prepaid, defeased or redeemed (automatically or
otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity, or such Guarantee to
become payable or cash collateral in respect thereof to be demanded; or (ii)
there occurs under any Swap Contract an Early Termination Date (as defined in
such Swap Contract) resulting from (A) any event of default under such Swap
Contract as to which a Loan Party or any Subsidiary thereof is the Defaulting
Party (as defined in such Swap Contract) or (B) any Termination Event (as so
defined) under such Swap Contract as to which a Loan Party or any Subsidiary
thereof is an Affected Party (as so defined) and, in either event, the Swap
Termination Value owed and not paid on the due date by such Loan Party or such
Subsidiary as a result thereof is greater than the Threshold Amount; or

 

(f)            Insolvency Proceedings, Etc. Any Loan Party
or any Significant Subsidiary or one or more Subsidiaries that in the aggregate
would constitute a Significant Subsidiary thereof institutes or consents to the
institution of any proceeding under any Debtor Relief Law, or makes an
assignment for the benefit of creditors; or applies for or consents to the
appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer for it or for all or any material part of its
property; or any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer is appointed without the application or
consent of such Person and the appointment continues undischarged or unstayed
for 60 calendar days; or any proceeding under any Debtor Relief Law relating to
any such Person or to all or any material part of its property is instituted
without the consent of such Person and continues undismissed or unstayed for 60
calendar days, or an order for relief is entered in any such proceeding; or

 

(g)          Inability to Pay Debts:
Attachment. (i) Any Loan Party or any Significant Subsidiary or one or more
Subsidiaries that in the aggregate would constitute a Significant Subsidiary
thereof becomes unable or admits in writing its inability or fails generally to
pay its debts as they become due, or (ii) any writ or warrant of attachment or
execution or similar

 

105

 

process is
issued or levied against all or any material part of the property of any such
Person and is not released, vacated or fully bonded within 30 days after its
issue or levy; or

 

(h)           Judgments. There is entered
against any Loan Party or any Significant Subsidiary or one or more
Subsidiaries that in the aggregate would constitute a Significant Subsidiary
thereof (i) one or more final judgments or orders for the payment of money in
an aggregate amount (as to all such judgments and orders) exceeding the
Threshold Amount (to the extent not covered by independent third-party
insurance as to which the insurer is rated at least “A” by A.M. Best Company,
has been notified of the potential claim and does not dispute coverage), or
(ii) any one or more non-monetary final judgments that have, or would
reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect and, in either case, (A) enforcement proceedings are commenced
by any creditor upon such judgment or order, or (B) there is a period of 10
consecutive days during which a stay of enforcement of such judgment, by reason
of a pending appeal or otherwise, is not in effect; or

 

(i)            ERISA. (i) An ERISA Event occurs with
respect to a Pension Plan or Multiemployer Plan which has resulted or would
reasonably be expected to result in liability of the Borrower under Title IV of
ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
amount that would reasonably be expected to result in an Material Adverse
Effect or the imposition of a Lien or security interest on any assets of any
Loan Party, or (ii) the Borrower or any ERISA Affiliate fails to pay when due,
after the expiration of any applicable grace period, any installment payment
with respect to its withdrawal liability under Section 4201 of ERISA under a
Multiemployer Plan in an aggregate amount that would reasonably be expected to
result in an Material Adverse Effect or the imposition of a Lien or security
interest on any assets of any Loan Party; or

 

(j)            Invalidity of Loan Documents. Any provision
of any Loan Document, at any time after its execution and delivery and for any
reason other than as expressly permitted hereunder or thereunder or
satisfaction in full of all the Obligations, ceases to be in full force and
effect (except as the result of any act or omission of the Administrative Agent
or any Secured Party); or any Loan Party contests in any manner the validity or
enforceability of any provision of any Loan Document; or any Loan Party denies
that it has any or further liability or obligation under any provision of any
Loan Document, or purports to revoke, terminate or rescind any provision of any
Loan Document; or

 

(k)           Change of Control. There occurs any Change
of Control; or

 

(1)           Collateral Documents. Any Collateral
Document after delivery thereof pursuant to Section 4.01 or 6.12  shall for any reason (other than
pursuant to the terms thereof or as a result of any act or omission of the
Administrative Agent or Secured Party) cease to create a valid and perfected
first priority Lien (subject to Liens permitted by Section 7.01) on the
Collateral purported to be covered thereby; or

 

Notwithstanding
anything to the contrary contained in this Section 8.01, in the event
that Holdings fails to comply with the requirements of the covenant contained
in Section 7.11, until the 10th
day subsequent to delivery of the related Compliance Certificate, Sponsor shall
have the right, but in any event no more than two (2) times in any four
consecutive fiscal -

 

106

 

quarter period, to make cash
contributions to the capital of the Borrower in an amount equal to the
amount necessary to cure the relevant failure to comply with the covenant
contained in Section 7.11 and to contribute any such cash to the common
equity capital of the Borrower (collectively, the “Cure Right”), and
upon the receipt by the Borrower of such cash (the “Cure Amount”)
pursuant to the exercise by Sponsor of such Cure Right such covenant shall be
recalculated giving effect to the following pro forma adjustments:

 

(A)                               Consolidated
Adjusted EBITDA shall be increased, in accordance with the definition thereof,
solely for the purpose of measuring the relevant covenant and not for any other
purpose under this Agreement, by an amount equal to the Cure Amount;

 

(B)                               if,
after giving effect to the foregoing recalculations, Holdings shall then be in
compliance with the requirements of the covenant contained in Section 7.11,
Holdings shall be deemed to have satisfied the requirements of the covenants
contained in Section 7.11 as of the relevant date of determination with
the same effect as though there had been no failure to comply therewith at such
date, and the applicable breach or default of the covenant contained in Section
7.11 which had occurred shall be deemed cured for all purposes of this
Agreement and the other Loan Documents; and

 

to the extent
that the Cure Amount proceeds are used to repay Indebtedness, such Indebtedness
shall not be deemed to have been repaid for purposes of calculating the
Consolidated Leverage Ratio for the period with respect to which such
Compliance Certificate
applies.

 

8.02.                     Remedies
upon Event of Default. If any Event of Default occurs and is continuing,
the Administrative Agent shall, at the request of, or may, with the consent of,
the Required Lenders, take any or all of the following actions:

 

(a)                                 declare
the commitment of each Lender to make Loans and any obligation of the L/C
Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated;

 

(b)                                 declare
the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower;

 

(c)                               require
that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

 

(d)                              exercise
on behalf of itself, the Lenders and the L/C Issuer all rights and remedies
available to it, the Lenders and the L/C Issuer under the Loan Documents;

 

provided,
however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the
United States, the obligation of

 

107

 

each Lender to
make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions
shall automatically terminate, the unpaid principal amount of all outstanding
Loans and all interest and other amounts as aforesaid shall automatically
become due and payable, and the obligation of the Borrower to Cash
Collateralize the L/C Obligations as aforesaid shall automatically become
effective, in each case without further act of the Administrative Agent or any
Lender.

 

8.03.       Application of Funds. After the
exercise of remedies provided for in Section 8.02 (or after the Loans
have automatically become immediately due and payable and the L/C Obligations have
automatically been required to be Cash Collateralized as set forth in the
proviso to Section 8.02), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following
order:

 

First, to payment of that portion of the
Obligations constituting fees, indemnities, expenses and other amounts
(including fees, charges and disbursements of counsel to the Administrative
Agent and amounts payable under Article III) payable to the
Administrative Agent in its capacity as such;

 

Second, to payment of that portion of the
Obligations constituting fees, indemnities and other amounts (other than
principal, interest and Letter of Credit Fees) payable to the Lenders and the
L/C Issuer (including fees, charges and disbursements of counsel to the
respective Lenders and the L/C Issuer (including fees and time charges for
attorneys who may be employees of any Lender or the L/C Issuer) and amounts
payable under Article III, ratably among them in proportion to the
respective amounts described in this clause Second payable to them;

 

Third, to payment of that portion of the
Obligations constituting accrued and unpaid Letter of Credit Fees and interest
on the Loans, unpaid principal of the Loans, L/C Borrowings and amounts owing
under Secured Hedge Agreements and Secured Cash Management Agreements, L/C Borrowings
and other Obligations and to the Administrative Agent for the account of the
L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised of
the aggregate undrawn amount of Letters of Credit, ratably among the Lenders
and the L/C Issuer, the Hedge Banks and the Cash Management Banks in proportion
to the respective amounts described in this clause Third payable to
them; and

 

Last, the balance, if any, after all of the
Obligations have been indefeasibly paid in full, to the Borrower or as
otherwise required by Law.

 

Subject to Section
2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount of
Letters of Credit pursuant to clause Third above shall be applied to
satisfy drawings under such Letters of Credit as they occur. If any. amount
remains on deposit as cash collateral after all Letters of Credit have either
been fully drawn or expired, such remaining amount shall be applied to the
other Obligations, if any, in the order set forth above.

 

108

 

ARTICLE IX

ADMINISTRATIVE AGENT

 

9.01.       Appointment and Authority.

 

(a)           Each of the Lenders and the L/C Issuer hereby
irrevocably appoints Bank of America to act on its behalf as the Administrative
Agent hereunder and under the other Loan Documents and authorizes the
Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental
thereto. The provisions of this
Article are solely for the benefit of the Administrative Agent, the Lenders and
the L/C Issuer, and neither the Borrower nor any other Loan Party shall
have rights as a third party beneficiary of any of such provisions.

 

(b)           The Administrative
Agent shall also act as the “collateral agent” under the Loan Documents,
and each of the Lenders (in its capacities as a Lender, Swing Line Lender (if
applicable), potential Hedge Bank and potential Cash Management Bank) and the L/C
Issuer hereby irrevocably appoints and authorizes the Administrative Agent to
act as the agent of such Lender and the L/C Issuer for purposes of acquiring,
holding and enforcing any and all Liens on Collateral granted by any of the
Loan Parties to secure any of the Obligations, together with such powers and
discretion as are reasonably incidental thereto. In this connection, the
Administrative Agent, as “collateral agent” and any co-agents, sub-agents and
attorneys-in-fact appointed by the Administrative Agent pursuant to Section
9.05 for purposes of holding or enforcing any Lien on the Collateral (or any
portion thereof) granted under the Collateral Documents, or for
exercising any rights and remedies thereunder at the direction of the
Administrative Agent), shall be entitled to the benefits of all provisions of
this Article IX and Article XI (including Section 11.04(c),
as though such co-agents, sub-agents and attorneys-in-fact were the “collateral
agent” under the Loan Documents) as if set forth in full herein with respect
thereto.

 

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

 

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

 

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

 

109

 

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

 

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

 

The Administrative Agent shall not be liable for any action taken or
not taken by it (i) with the consent or at the request of the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary, or as
the Administrative Agent shall believe in good faith shall be necessary, under
the circumstances as provided in Sections 11.01 and 8.02) or (ii)
in the absence of its own bad faith, gross negligence or willful misconduct.
The Administrative Agent shall be deemed not to have knowledge of any Default
unless and until notice describing such Default is given to the Administrative
Agent by the Borrower, a Lender or the L/C Issuer.

 

The Administrative Agent shall not be responsible for or have any duty
to ascertain or inquire into (i) any statement, warranty or representation made
in or in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan
Document or any other agreement, instrument or document, or the creation,
perfection or priority of any Lien purported to be created by the Collateral
Documents, (v) the value or the sufficiency of any Collateral, or (v) the
satisfaction of any condition set forth in Article IV or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

 

9.04.       Reliance by
Administrative Agent. The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. The Administrative Agent also
may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability
for relying thereon. In determining compliance with any condition hereunder to
the making of a Loan, or the issuance of a Letter of Credit, that by its terms
must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative
Agent may presume that such condition is

 

110

 

 

satisfactory
to such Lender or the L/C Issuer unless the Administrative Agent shall have
received notice to the contrary from such Lender or the L/C Issuer prior to the making of such
Loan or the issuance of such Letter of Credit. The Administrative Agent may
consult with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

 

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

 

9.06.       Resignation of Administrative Agent.
The Administrative Agent may at any time give notice of its resignation to the
Lenders, the L/C Issuer and the Borrower. Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, with the consent of
Borrower (not to be unreasonably withheld), to appoint a successor, which shall
be a bank with an office in the United States, or an Affiliate of any such bank
with an office in the United States. If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its
resignation, then the retiring Administrative Agent may on behalf of the
Lenders and the L/C Issuer, with the consent of Borrower (not to be
unreasonably withheld) appoint a successor Administrative Agent meeting the
qualifications set forth above; provided that if the Administrative
Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and (a) the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder and under
the other Loan Documents (except that in the case of any collateral security
held by the Administrative Agent on behalf of the Lenders or the L/C Issuer
under any of the Loan Documents, the retiring Administrative Agent shall
continue to hold such collateral security until such time as a successor
Administrative Agent is appointed) and (b) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender and the L/C Issuer directly, until
such time as the Required Lenders appoint a successor Administrative Agent as
provided for above in this Section. Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired) Administrative Agent, and the retiring Administrative
Agent shall be discharged from all of its duties and obligations hereunder or
under the other Loan Documents (if not already discharged therefrom as provided
above in this Section). The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After the
retiring Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article and Section 11.04 shall
continue in effect for the

 

111

 

benefit of
such retiring Administrative Agent, its sub-agents and their respective Related
Parties in respect of any actions taken or omitted to be taken by any of them
while the retiring Administrative Agent was acting as Administrative Agent.

 

Any
resignation by Bank of America as Administrative Agent pursuant to this Section
shall also constitute its resignation as L/C Issuer and Swing Line Lender. Upon
the acceptance of a successor’s appointment as Administrative Agent hereunder,
(i) such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer and Swing Line Lender,
(ii) the retiring L/C Issuer and Swing Line Lender shall be discharged from all
of their respective duties and obligations hereunder or under the other Loan
Documents, and (iii) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if
any, outstanding at the time of such succession or make other
arrangements satisfactory to the retiring L/C Issuer to effectively assume the
obligations of the retiring L/C Issuer with respect to such Letters of Credit.

 

9.07.       Non-Reliance on Administrative Agent
and Other Lenders. Each Lender and the L/C Issuer acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender and the L/C Issuer also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and based on
such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or any related
agreement or any document furnished hereunder or thereunder.

 

9.08.       No Other Duties, Etc. Anything
herein to the contrary notwithstanding, none of the Bookrunners or Arrangers
listed on the cover page hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Administrative Agent, a Lender or
the L/C Issuer hereunder.

 

9.09.       Administrative Agent May File Proofs
of Claim. In case of the pendency of any proceeding under any Debtor Relief
Law or any other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C
Obligation shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether the Administrative Agent shall have
made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding or otherwise

 

(a)           to file and prove a claim for the
whole amount of the principal and interest owing and unpaid in respect of the
Loans, L/C Obligations and all other Obligations that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have
the claims of the Lenders, the L/C Issuer and the Administrative Agent
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Lenders, the L/C Issuer and the Administrative Agent and
their respective agents and counsel and all other amounts due the Lenders, the
L/C Issuer and the Administrative Agent under Sections 2.03(i) and (j), 2.09 and 11.04)
allowed in such judicial proceeding; and

 

112

 

(b)           to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same;

 

and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender and the L/C Issuer to make such payments to the Administrative Agent and, if the
Administrative Agent shall consent to the making
of such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation,
expenses, disbursements and advances of the Administrative Agent and its agents
and counsel, and any other amounts due the Administrative Agent under Sections
2.09 and 11.04.

 

Nothing
contained herein shall be deemed to authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender or the L/C
Issuer any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or the L/C Issuer to authorize the Administrative
Agent to vote in respect of the claim
of any Lender or the L/C Issuer or in any such proceeding.

 

9.10.       Collateral and Guaranty Matters.
The Lenders and the L/C Issuer irrevocably authorize the Administrative Agent,
at its option and in its discretion,

 

(a)           to release any Lien on any
property granted to or held by the Administrative Agent under any Loan Document
(i) upon tçrmination of the Aggregate Commitments and payment in full of all
Obligations (other than contingent indemnification obligations) and the
expiration or termination of all Letters of Credit, (ii) that is sold or to be
sold as part of or in connection with any sale permitted hereunder or under any
other Loan Document, or (iii) if approved, authorized or ratified in writing in
accordance’ with Section 11.01;

 

(b)           to release any Guarantor from its
obligations under the Guaranty if such Person ceases to be a Subsidiary or is
designated an Unrestricted Subsidiary as a result of a transaction permitted
hereunder; and

 

(c)           to subordinate any Lien on any
property granted to or held by the Administrative Agent under any Loan Document
to the holder of any Lien on such property that is permitted by Section
7.01(i).

 

Upon request
by the Administrative Agent at any time, the Required Lenders will confiim in
writing the Administrative Agent’s authority to release or subordinate its
interest in particular types or items of property, or to release any Guarantor
from its obligations under the Guaranty pursuant to this Section 9.10.
In each case as specified in this Section 9.10, the Administrative Agent
will, at the Borrower’s expense, execute and deliver to the applicable Loan
Party such documents as such Loan Party may reasonably request to evidence the
release of such item of Collateral from the assignment and security interest
granted under the Collateral Documents or to subordinate its interest in such
item, or to release such Guarantor from its obligations under the Guaranty, in
each case in accordance with the terms of the Loan Documents and this Section
9.10.

 

113

 

ARTICLE X

CONTINUING GUARANTY

 

10.01.     Guaranty. Holdings hereby absolutely
and unconditionally guarantees, as a guaranty of payment and performance and not merely as a guaranty of
collection, prompt payment when due, whether at stated maturity, by
required prepayment, upon acceleration, demand or otherwise, and at all times
thereafter, of any and all of the Obligations, whether for principal, interest,
premiums, fees, indemnities, damages, costs, expenses or otherwise, of the
Borrower to the Secured Parties, arising hereunder and under the other Loan
Documents (including all renewals, extensions, amendments, refinancings and
other modifications thereof and all costs, attorneys’ fees and expenses
incurred by the Secured Parties in connection with the collection or
enforcement thereof). The Administrative Agent’s books and records showing the
amount of the Obligations shall be admissible in evidence in any action or
proceeding, and shall be binding upon Holdings, and conclusive for the purpose
of establishing the amount of the Obligations. This Guaranty shall not be
affected by the genuineness, validity, regularity or enforceability of the
Obligations or any instrument or agreement evidencing any Obligations, or by
the existence, validity, enforceability, perfection, non-perfection or extent
of any collateral therefor, or by any fact or circumstance relating to the
Obligations which might otherwise constitute a defense to the obligations of
Holdings under this Guaranty, and Holdings hereby irrevocably waives any defenses
it may now have or hereafter acquire in any way relating to any or all of the
foregoing.

 

10.02.     Rights of Lenders. Holdings consents
and agrees that the Secured Parties may, at any time and from time to time,
without notice or demand, and without affecting the enforceability or
continuing effectiveness hereof: (a) amend, extend, renew, compromise,
discharge, accelerate or otherwise change the time for payment or the terms of
the Obligations or any part thereof; (b) take, hold, exchange, enforce, waive,
release, fail to perfect, sell, or otherwise dispose of any security for the
payment of this Guaranty or any Obligations; (c) apply such security and direct
the order or manner of sale thereof as the Administrative Agent, the L/C Issuer
and the Lenders in their sole discretion may determine; and (d) release or
substitute one or more of any endorsers or other guarantors of any of the
Obligations. Without limiting the generality of the foregoing, Holdings
consents to the taking of, or failure to take, any action which might in any
manner or to any extent vary the risks of Holdings under this Guaranty or
which, but for this provision, might operate as a discharge of Holdings.

 

10.03.     Certain Waivers. Holdings waives (a)
any defense arising by reason of any disability or other defense of the
Borrower or any other guarantor, or the cessation from any cause whatsoever
(including any act or omission of any Secured Party) of the liability of the
Borrower; (b) any defense based on any claim that Holdings’ obligations exceed
or are more burdensome than those of the Borrower; (c) the benefit of any
statute of limitations affecting Holdings’ liability hereunder; (d) any right
to proceed against the Borrower, proceed against or exhaust any security for
the Obligations, or pursue any other remedy in the power of any Secured Party
whatsoever; (e) any benefit of and any right to participate in any security now
or hereafter held by any Secured Party; and (f) to the fullest extent permitted
by law, any and all other defenses or benefits that may be derived from or
afforded by applicable law limiting the liability of or exonerating guarantors
or sureties. Holdings expressly waives all setoffs and counterclaims

 

114

 

and all presentments,
demands for payment or performance, notices of nonpayment or nonperformance,
protests, notices of protest, notices of dishonor and all other notices or
demands of any kind or nature whatsoever with respect to the Obligations, and
all notices of acceptance of this Guaranty or of the existence, creation or
incurrence of new or additional Obligations.

 

10.04.     Obligations Independent. The
obligations of Holdings hereunder are those of primary obligor, and not merely
as surety, and are independent of the Obligations and the obligations of any
other guarantor, and a separate action may be brought against Holdings to
enforce this Guaranty whether or not the Borrower or any other person or entity
is joined as a party.

 

10.05.     Subrogation. Holdings shall not
exercise any right of subrogation, contribution, indemnity, reimbursement or
similar rights with respect to any payments it makes under this Guaranty until
all of the Obligations and any amounts payable under this Guaranty have been
indefeasibly paid and performed in full and the Commitments and the Facilities
are terminated. If any amounts are paid to Holdings in violation of the
foregoing limitation, then such amounts shall be held in trust for the benefit
of the Secured Parties and shall forthwith be paid to the Secured Parties to
reduce the amount of the Obligations, whether matured or unmatured.

 

10.06.     Termination; Reinstatement. This
Guaranty is a continuing and irrevocable guaranty of all Obligations now or
hereafter existing and shall remain in full force and effect until all
Obligations and any other amounts payable under this Guaranty are indefeasibly
paid in full in cash and the Commitments and the Facilities with respect to the
Obligations are terminated. Notwithstanding the foregoing, this Guaranty shall
continue in full force and effect or be revived, as the case may be, if any
payment by or on behalf of the Borrower or Holdings is made, or any of the
Secured Parties exercises its right of setoff, in respect of the Obligations
and such payment or the proceeds of such setoff or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required (including pursuant to any settlement entered into by any of the
Secured Parties in their discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Laws or
otherwise, all as if such payment had not been made or such setoff had not
occurred and whether or not the Secured Parties are in possession of or have
released this Guaranty and regardless of any prior revocation, rescission,
termination or reduction. The obligations of Holdings under this paragraph
shall survive termination of this Guaranty.

 

10.07.     Subordination. Holdings hereby
subordinates the payment of all obligations and indebtedness of the Borrower
owing to Holdings, whether now existing or hereafter arising, including but not
limited to any obligation of the Borrower to Holdings as subrogee of the
Secured Parties or resulting from Holdings’ performance under this Guaranty, to
the indefeasible payment in full in cash of all Obligations. If the Secured
Parties so request, any such obligation or indebtedness of the Borrower to
Holdings shall be enforced and performance received by Holdings as trustee for
the Secured Parties and the proceeds thereof shall be paid over to the Secured
Parties on account of the Obligations, but without reducing or affecting in any
manner the liability of Holdings under this Guaranty.

 

115

 

10.08.     Stay of Acceleration. If acceleration
of the time for payment of any of the Obligations is stayed, in connection with
any case commenced by or against Holdings or the Borrower under any Debtor
Relief Laws, or otherwise, all such amounts shall nonetheless be payable by
Holdings immediately upon demand by the Secured Parties.

 

10.09.     Condition of Borrower. Holdings
acknowledges and agrees that it has the sole responsibility for, and has
adequate means of, obtaining from the Borrower and any other guarantor such
information concerning the financial condition, business and operations of the
Borrower and any such other guarantor as Holdings requires, and that none of
the Secured Parties has any duty, and Holdings is not relying on the Secured
Parties at any time, to disclose to Holdings any information relating to the
business, operations or financial condition of the Borrower or any other
guarantor (Holdings waiving any duty on the part of the Secured Parties to
disclose such information and any defense relating to the failure to provide
the same).

 

ARTICLE XI

MISCELLANEOUS

 

11.01.     Amendments, Etc. No amendment or
waiver of any provision of this Agreement or any other Loan Document, and no
consent to any departure by the Borrower or any other Loan Party therefrom,
shall be effective unless in writing signed by the Required Lenders and the
Borrower or the applicable Loan Party, as the case may be, and acknowledged by
the Administrative Agent, and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall:

 

(a)           waive any condition set forth in Section
4.01 (other than Section 4.01(b)(i) or (c)),
or, in the case of the initial Credit Extension, Section 4.02, without
the written consent of each Lender;

 

(b)           without limiting the generality of clause (a)
above, waive any condition set forth in Section 4.02 as to any Credit
Extension under a particular Facility without the written consent of the
Required Revolving Lenders or the Required Term B Lenders, as the case may be;

 

(c)           extend or increase the Commitment of
any Lender (or reinstate any Commitment terminated pursuant to Section 8.02)
without the written consent of such Lender;

 

(d)           postpone any date fixed by this Agreement or any
other Loan Document for any payment (excluding mandatory prepayments) of
principal, interest, fees or other amounts due to the Lenders (or any of them)
hereunder or under such other Loan Document without the written consent of each
Lender entitled to such payment;

 

(e)           reduce the principal of, or the rate
of interest specified hetein on, any Loan or L/C Borrowing, or any fees or
other amounts payable hereunder or under any other Loan Document without the
written consent of each Lender entitled to such amount; provided,  however,
that only the consent of the Required Lenders shall be necessary (i) to amend
the definition of “Default Rate” or to waive any obligation of the Borrower to
pay interest or Letter of Credit Fees at the Default Rate or (ii) to amend any
financial covenant hereunder (or any

 

116

 

defined term
used therein) even if the effect of such amendment would be to reduce the rate
of interest on any Loan or L/C Borrowing or to reduce any fee payable
hereunder;

 

(f)            change (i) Section 2.13 or Section 8.03
in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each
Lender or (ii) the order of application of any reduction in the
Commitments or any prepayment of Loans among the Facilities from the
application thereof set forth in the applicable provisions of Section
2.05(b) or 2.06(b), respectively, in any manner that materially and
adversely affects the Lenders under a Facility without the written consent of
(i) if such Facility is the Term B Facility, the Required Term B Lenders and
(ii) if such Facility is the Revolving Credit Facility, the Required Revolving
Lenders;

 

(g)           change (i) any provision of this Section 11.01
or the definition of “Required Lenders” or any other provision hereof
specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any
consent hereunder (other than the definitions specified in clause (ii) of this Section
11.01(g)), without the written consent of each Lender or (ii) the
definition of “Required Revolving Lenders,” or “Required Term B Lenders”
without the written consent of each Lender under the applicable Facility;

 

(h)           release all or substantially all of the Collateral
in any transaction or series of related transactions, without the written
consent of each Lender;

 

(i)            release all or substantially all of
the value of the Guaranty, without the written consent of each Lender; or 

 

(j)            impose any greater restriction on
the ability of any Lender under a Facility to assign any of its rights or
obligations hereunder without the written consent of (i) if such Facility is
the Term B Facility, the Required Term B Lenders and (ii) if such Facility is
the Revolving Credit Facility, the Required Revolving Lenders;

 

and provided,
further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above,
affect the rights or duties of the L/C Issuer under this Agreement or any
Issuer Document relating to any Letter of Credit issued or to be issued by it;
(ii) no amendment, waiver or consent shall, unless in writing and signed by the
Swing Line Lender in addition to the Lenders required above, affect the rights
or duties of the Swing Line Lender under this Agreement; (iii) no amendment,
waiver or consent shall, unless in writing and signed by the Administrative
Agent in addition to the Lenders required above, affect the rights or duties of
the Administrative Agent under this Agreement or any other Loan Document; and
(iv) the Fee Letter may be amended, or rights or privileges thereunder waived,
in a writing executed only by the parties thereto. Notwithstanding anything to
the contrary herein, no Defaulting Lender shall have any right to approve or
disapprove any amendment, waiver or consent hereunder, except that the
Commitment of such Lender may not be increased or extended without the consent
of such Lender.

 

If, in
connection with any proposed amendment, waiver, or consent, the consent of all
of the Lenders, or all of the Lenders directly affected thereby, is required
pursuant to this

 

117

 

Section 11.01,
and any such Lender refuses to consent to such amendment, waiver or consent as.
to which the Required Lenders have consented (any such Lender whose consent is
not obtained as described in this Section 11.01 being referred to as a “Non-Consenting
Lender”), then, so long as the Administrative Agent is not a Non-Consenting
Lender, at the Borrower’s request and at the sole cost and expense of the
Borrower, the Administrative Agent or an Eligible Assignee shall be entitled
(but shall have no obligation) to purchase from such Non-Consenting Lender, and
such Non-Consenting Lender (by its acceptance of the benefits of the applicable
Loan Documents) agrees that it shall, upon the Administrative Agent’s request,
sell and assign to the Administrative Agent or such Eligible Assignee, all of
the Loans and Commitments of such Non-Consenting Lender or Non-Consenting
Lenders for an amount equal to the principal balance of all Loans held by the
Non-Consenting Lender and all accrued interest and fees with respect thereto
through the date of sale; provided that such Eligible Assignee consents
to the proposed amendment, waiver or consent and provided, further,
that such amendment, waiver or consent can be effected as a result of such purchase
(together with all other purchases to be made pursuant to this paragraph). Each
Lender (by its acceptance of the benefits of the Loan Documents) agrees that,
if it becomes a Non-Consenting Lender, it shall execute and deliver to the
Administrative Agent an Assignment and Assumption to evidence such sale and
purchase and shall deliver to the Administrative Agent any Note (if the
assigning Lender’s Loans are evidenced by Notes) subject to such Assignment and
Acceptance; provided, however, that the failure of any Non-Consenting Lender to
execute an Assignment and Acceptance shall not render such sale and purchase
(and the corresponding assignment) ineffective.

 

11.02.     Notices: Effectiveness: Electronic
Communications.

 

(a)           Notices Generally. Except in
the case of notices and other communications expressly permitted to be given by
telephone (and except as provided in subsection (b) below), all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopier as follows, and all notices and other
communications expressly permitted hereunder to be given by telephone shall be
made to the applicable telephone number, as follows:

 

(i)            if to Holdings, the
Borrower, the Administrative Agent, the L/C Issuer or the Swing Line Lender, to
the address, telecopier number, electronic mail address or telephone number
specified for such Person on Schedule 11.02; and

 

(ii)           if to any other Lender, to the
address, telecopier number, electronic mail address or telephone number
specified in its Administrative Questionnaire.

 

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

 

118

 

(b)           Electronic
Communications. Notices and other communications to the Lenders and the L/C
Issuer hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures
approved by the Administrative Agent, provided that the foregoing shall
not apply to notices to any Lender or the L/C Issuer pursuant to Article II if such
Lender or the L/C Issuer, as applicable, has notified the Administrative
Agent that it is incapable of receiving notices under such Article by
electronic communication. The Administrative Agent or the Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it, provided
that approval of such procedures may be limited to particular notices or
communications.

 

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of
an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written
acknowledgement), provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in
the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

 

(c)           The Platform.
THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE
ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE
PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY,
INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE
DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS
OR THE PLATFORM. In no event shall the Administrative Agent or any of its
Related Parties (collectively, the “Agent Parties”) have any liability
to Holdings, the Borrower, any Lender, the L/C Issuer or any other Person for
losses, claims, damages, liabilities or expenses of any kind (whether in tort,
contract or otherwise) arising out of the Borrower’s or the Administrative
Agent’s transmission of Borrower Materials through the Internet, except to the
extent that such losses, claims, damages, liabilities or expenses are
determined by a court of competent jurisdiction by a final and nonappealable
judgment to have resulted from the, bad faith, gross negligence or willful
misconduct of such Agent Party; provided, however, that in no
event shall any Agent Party have any liability to Holdings, the Borrower, any
Lender, the L/C Issuer or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

 

(d)          Change of Address,
Etc. Each of Holdings, the Borrower, the Administrative Agent, the L/C
Issuer and the Swing Line Lender may change its address, telecopier or
telephone number for notices and other communications hereunder by notice to
the

 

119

 

other parties
hereto. Each other Lender may change its address, telecopier or telephone
number for notices and other communications hereunder by notice to the
Borrower, the Administrative Agent, the L/C Issuer and the Swing Line Lender.
In addition, each Lender agrees to notify the Administrative Agent from time to
time to ensure that the Administrative Agent has on record (i) an effective
address, contact name, telephone number, telecopier number and electronic mail
address to which notices and other communications may be sent and (ii) accurate
wire instructions for such Lender.

 

(e)           Reliance by Administrative Agent,
L/C Issuer and Lenders. The Administrative Agent, the L/C Issuer and the Lenders shall be entitled
to rely and act upon any notices (including telephonic Committed Loan Notices
and Swing Line Loan Notices) purportedly given by or on behalf of the
Borrower even if (i) such notices were not made in a manner specified herein,
were incomplete or were not preceded or followed by any other form of notice
specified herein, or (ii) the terms thereof, as understood by the recipient,
varied from any confirmation thereof. The Borrower shall indemnify the
Administrative Agent, the L/C Issuer, each
Lender and the Related Parties of each of them from all losses, costs, expenses
and liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Borrower. All telephonic notices to
and other telephonic communications with the Administrative Agent may be
recorded by the Administrative Agent, and each of the parties hereto hereby
consents to such recording.

 

11.03.     No Waiver; Cumulative Remedies. No
failure by any Lender, the L/C Issuer or the Administrative Agent to exercise,
and no delay by any such Person in exercising, any right, remedy, power or
privilege hereunder or under any other Loan Document shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege. The rights, remedies, powers
and privileges herein provided, and provided under each other Loan Document,
are cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

 

11.04.     Expenses; Indemnity; Damage Waiver.

 

(a)           Costs and Expenses. The
Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates (including the reasonable fees, charges
and disbursements of counsel for the Administrative Agent), in connection with
the syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration of this Agreement and the
other Loan Documents or any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket
expenses incurred by the L/C Issuer in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment
thereunder and (iii) all out-of-pocket expenses incurred by the Administrative
Agent, any Lender or the L/C Issuer (including the fees, charges and
disbursements of any counsel for the Administrative Agent, any Lender or the
L/C Issuer), in connection with the enforcement or protection of its rights (A)
in connection with this Agreement and the other Loan Documents, including its
rights under this Section, or (B) in connection with Loans made or Letters of
Credit issued hereunder,

 

120

 

including all such
out-of-pocket expenses incurred during any workout, restructuring or negotiations
in respect of such Loans or Letters of Credit; provided that the Borrower shall
not be liable for the fees and expenses of more than one separate firm of
attorneys at any time for all Lenders, except to the extent that any additional
counsel are in the reasonable judgment of such Lender necessary as a result of
an actual or potential conflict of interest among Lenders.

 

(b)           Indemnification by the Borrower.
The Borrower shall indemnify the Administrative Agent (and any sub-agent
thereof), each Lender and the L/C Issuer, and each Related Party of any of the
foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the fees, charges and
disbursements of any counsel for any Indenmitee), incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by the Borrower or any
other Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement, any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, or, in the
case of the Administrative Agent (and any sub-agent thereof) and its Related
Parties only, the administration of this Agreement and the other Loan
Documents, (ii) any Loan or Letter of Credit or the use or proposed use of
the proceeds therefrom (including any refusal by the L/C Issuer to honor a
demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such
Letter of Credit), (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by the Borrower or any of
its Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third
party or by the Borrower or any other Loan Party and regardless of whether any
Indemnitee is a party thereto; provided that such indemnity shall not,
as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses (w) are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the bad faith, gross
negligence or willful misconduct of such Indemnitee or (x) result from a claim
brought by the Borrower or any other Loan Party against an Indemnitee for
breach of such Indemnitee’s obligations hereunder or under any other Loan
Document, (y) does not involve, directly or indirectly, an act or omission of
any Loan Party or any of their respective affiliates, stockholders, partners or
other equity holders or (z) is brought by an Indemnitee against another
Indemnitee (other than against Bank of America in its capacity of
Administrative Agent or Banc of America Securities LLC or Credit Suisse
Securities (USA) LLC in their capacity as Arrangers), provided, further that
the Borrower shall not, in connection with any one such action or proceeding or
separate but substantially similar actions or proceedings arising out of the
same general allegations, be liable for the fees and expenses or more than one
separate firm of attorneys at any time for air Indemnitees, except to the
extent that (x) local or special counsel, in addition to its regular counsel,
is required in the reasonable judgment of such Indemnitee in order to
effectively defend against such action or proceeding or (y) any additional
counsel are in the reasonable judgment of such Indemnitee necessary as a result
of an actual or potential conflict of interest among Indemnitees.

 

121

 

(c)           Reimbursement by Lenders. To
the extent that the Borrower for any reason fails to indefeasibly pay any
amount required under subsection (a) or (b) of this Section to be paid by it to
the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any
Related Party of any of the foregoing, each Lender severally agrees to pay to
the Administrative Agent (or any such sub-agent), the L/C Issuer or such
Related Party, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount, provided that the unreimbursed
expense or indemnified loss, claim, damage, liability or related expense, as
the case may be, was incurred by or asserted against the Administrative Agent
(or any such sub-agent) or the L/C Issuer in its capacity as such, or against any Related Party of
any of the foregoing acting for the Administrative Agent (or any such
sub-agent) or L/C Issuer in connection with such capacity. The obligations of
the Lenders under this subsection (c) are subject to the provisions of

Section 2.12(d).

 

(d)           Waiver of Consequential Damages.
Etc. To the fullest extent permitted by applicable law, the Borrower shall
not assert, and hereby waives, any claim against any Indemnitee, on any theory
of liability, for special, indirect, consequential or punitive damages (as
opposed to direct or actual damages) arising out of, in connection with, or as
a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or
thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No
Indemnitee referred to in subsection (b) above shall be liable for any damages
arising from the use by unintended recipients of any information or other
materials distributed to such unintended recipients by such Indemnitee through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby other than for direct or actual damages
resulting from the bad faith, gross negligence or willful misconduct of such
Indemnitee as determined by a final and nonappealable judgment of a court of
competent jurisdiction.

 

(e)           Payments. All amounts due
under this Section shall be payable not later than ten Business Days after
demand therefor.

 

(f)            Survival. The agreements in
this Section shall survive the resignation of the Administrative Agent, the L/C
Issuer and the Swing Line Lender, the replacement of any Lender, the
termination of the Aggregate Commitments and the repayment, satisfaction or discharge
of all the other Obligations.

 

11.05.     Payments Set Aside. To the
extent that any payment by or on behalf of the Borrower is made to the Administrative
Agent, the L/C Issuer or any Lender, or the Administrative Agent, the L/C
Issuer or any Lender exercises its right of setoff, and such payment or the
proceeds of such setoff or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including
pursuant to any settlement entered into by the Administrative Agent, the L/C
Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or
any other party, in connection with any proceeding under any Debtor Relief Law
or otherwise, then (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in
full force and effect

 

122

 

as if such
payment had not been made or such setoff had not occurred, and (b) each Lender
and the L/C Issuer severally agrees to pay to the Administrative Agent upon
demand its applicable share (without duplication) of any amount so recovered from
or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate
per annum equal to the Federal Funds Rate from time to time in effect. The
obligations of the Lenders and the L/C Issuer under clause (b) of the preceding
sentence shall survive the payment in full of the Obligations and the
termination of this Agreement.

 

11.06.     Successors and Assigns.

 

(a)           Successors and Assigns Generally. The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that neither the Borrower nor any other Loan Party may assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of the Administrative Agent and each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an assignee in accordance with the provisions of Section 11.06(b),
(ii) by way of participation in accordance with the provisions of Section
11.06(d), or (iii) by way of pledge or assignment of a security interest
subject to the restrictions of Section 11.06(f), (and any other
attempted assignment or transfer by any party hereto shall be null and void).
Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and
assigns permitted hereby, Participants to the extent provided in subsection (d)
of this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the L/C Issuer and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this
Agreement.

 

(b)           Assignments by Lenders. Any
Lender may at any time assign to one or more assignees all or a portion of its
rights and obligations under this Agreement (including all or a portion of its
Commitment(s) and the Loans (including for purposes of this Section 11.06(b),
participations in L/C Obligations and in Swing Line Loans) at the time owing to
it); provided that any such assignment shall be subject to the following
conditions:

 

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

 

(B)          in any case not
described in subsection (b)(i)(A) of this Section, the aggregate amount of the
Commitment (which for this purpose includes Loans outstanding thereunder) or,
if the Commitment is not then in effect, the principal outstanding balance of
the Loans of the assigning Lender subject to each such assignment, determined
as of the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than
$5,000,000, in the case of any assignment in respect of the Revolving Credit
Facility, or $1,000,000, in the case of any assignment in respect of the Term B
Facility, unless each of the Administrative Agent

 

123

 

and, so long
as no Event of Default under Section 8.01 (a), (f) or (g) has occurred and is
continuing or any other Event of Default has occurred and is continuing for ten
or more Business Days at the time of such assignment, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met;

 

(ii)           Proportionate Amounts.
Each partial assignment shall be made as an assignment of a proportionate part
of all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loans or the Commitment assigned, except that this clause (ii)
shall not (A) apply to the Swing Line Lender’s rights and obligations in
respect of Swing Line Loans or (B) prohibit any Lender from assigning all
or a portion of its rights and obligations among separate Facilities on a
non-pro rata basis;

 

(iii)          Required
Consents. No consent shall be required for any assignment except to the
extent required by subsection (b)(i)(B) of this Section and, in addition:

 

(A)          the consent of the Borrower
(such consent not to be unreasonably withheld or delayed) shall be required
unless (1) an Event of Default under Section 8.01(a), (f) or (g) has occurred and
is continuing or any other Event of  Default has occurred and
is continuing for ten or more Business Days at the time of such assignment or
(2) such assignment is to a Lender, an Affiliate of a Lender or an Approved
Fund;

 

(B)          the consent of the
Administrative Agent (such consent not to be unreasonably withheld or delayed)
shall be required for assignments in respect of (i) any Term B Commitment or
Revolving Credit Commitment if such assignment is to a Person that is not a
Lender with a Commitment in respect of the applicable Facility, an Affiliate of
such Lender or an Approved Fund with respect to such Lender or (ii) any Term B
Loan to a Person that is not a Lender, an Affiliate of a Lender or an Approved
Fund; and

 

(C)          the consent of the
L/C Issuer (such consent not to be unreasonably withheld or delayed) shall be
required for any assignment that increases the obligation of the assignee to
participate in exposure under one or more Letters of Credit (whether or not
then outstanding); and

 

(D)          the consent of the Swing Line
Lender (such consent not to be unreasonably withheld or delayed) shall be
required for any assignment in respect of the Revolving Credit Facility.

 

(iv)          Assignment and Assumption.
The parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; provided,
however, that the Administrative Agent may, in its sole discretion,
elect to waive such processing and

 

124

 

recordation
fee in the case of any assignment. The assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire.

 

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

 

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

 

Subject to
acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the assignee thereunder shall be a party to
this Agreement and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 3.01, 3.04, 3.05
and 11.04 with respect to facts and circumstances occurring prior to the
effective date of such assignment). Upon request, the Borrower (at their
expense) shall execute and deliver a Note to the assignee Lender. Any
assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with Section 11.06(d).

 

(c)           Register. The Administrative
Agent, acting solely for this purpose as an agent of the Borrower, shall
maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amounts of the
Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders shall
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

 

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

 

125

 

Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agrees to any amendment, waiver or other modification described in the first
proviso to Section 11.01 that affects such Participant. Subject to subsection
(e) of this Section, the Borrower agrees that each Participant shall be
entitled to the benefits of Sections 3.01, 3.04 and 3.05
to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 11.06(b). To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 11.08
as though it were a Lender, provided such Participant agrees to be
subject to Section 2.13 as though it were a Lender.

 

(e)           Limitations upon
Participant Rights. A Participant shall not be entitled to receive any
greater payment under Section 3.01 or 3.04  than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the right to a greater payment results from a Change in Law
after the Participant becomes a Participant with respect to such Participation.
A Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 3.01 unless the Borrower is notified
of the participation sold to such Participant and such Participant agrees, for
the benefit of the Borrower, to comply with Section 3.01(e) as though it
were a Lender.

 

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

 

(g)           Electronic Execution of
Assignments. The words “execution,” “signed,” “signature,” and words of
like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of
which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce
Act, the New York State Electronic Signatures and Records Act, or any other
similar state laws based on the Uniform Electronic Transactions Act.

 

(h)          Resignation as L/C Issuer or
Swing Line Lender After Assignment. Notwithstanding anything to the
contrary contained herein, if at any time Bank of America assigns all of its
Revolving Credit Commitments and Revolving Credit Loans pursuant to Section
11.06(b), Bank of America may, (i) upon 30 days’ notice to the Borrower and
the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to the
Borrower, resign as Swing Line Lender. In the event of any such resignation as
L/C Issuer or Swing Line Lender, the Borrower shall be entitled to appoint from
among the Lenders a successor L/C Issuer or Swing Line Lender hereunder; provided,
however, that no failure by the Borrower to appoint any such successor
shall affect the resignation of Bank of America as L/C Issuer or Swing Line
Lender, as

 

126

 

the case may be. If Bank of
America resigns as L/C  Issuer, it shall retain all the rights,
powers,  privileges and duties of the L/C Issuer hereunder
with respect to all Letters of Credit outstanding as of the effective date of
its resignation as L/C Issuer and all L/C Obligations with respect thereto
(including the right to require the Lenders to make Base Rate Loans or fund
risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).
If Bank of America resigns as Swing Line Lender, it shall retain all the rights
of the Swing Line Lender provided for hereunder with respect to Swing Line
Loans made by it and outstanding as of the effective date of such resignation,
including the right to require the Lenders to make Base Rate Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section 2.04(c).
Upon the appointment of a successor L/C Issuer and/or Swing Line Lender, (a)
such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender,
as the case may be, and (b) the successor L/C Issuer shall issue letters of
credit in substitution for the Letters of Credit, if any, outstanding at the
time of such succession or make other arrangements satisfactory to Bank of
America to effectively assume the obligations of Bank of America with respect
to such Letters of Credit.

 

11.07.     Treatment of Certain Information;
Confidentiality. Each of the Administrative Agent, the Lenders and the L/C
Issuer agrees to maintain the confidentiality of the Information (as defined
below), except that Information may be disclosed (a) to its Affiliates and to
its and its Affiliates’ respective partners, directors, officers, employees,
agents, advisors and representatives (it being understood that the Persons to
whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement, (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating
to the Borrower and its obligations or (iii) any pledgee referred to in Section
11.06(f), (g) with the consent of the Borrower or (h) to the extent such
Information (i) becomes publicly available other than as a result of a breach
of this Section or (ii) becomes available to the Administrative Agent, any
Lender, the L/C Issuer or any of their respective Affiliates on a nonconfidential
basis from a source other than the Borrower.

 

For purposes
of this Section, “Information” means all information received from any
Loan Party or any Subsidiary thereof relating to any Loan Party or any
Subsidiary thereof or their respective businesses, other than any such
information that is available to the Administrative Agent, any Lender or the
L/C Issuer on a nonconfidential basis prior to disclosure by any Loan Party or
any Subsidiary thereof, provided that, in the case of information
received from a Loan Party or any such Subsidiary after the date hereof, such
information is clearly identified at the time of delivery as confidential. Any
Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied

 

127

 

with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information.

 

Each of the
Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning the Borrower
or a Subsidiary, as the case may be, (b) it has developed compliance procedures
regarding the use of material non-public information and (c) it will handle
such material non-public information in accordance with applicable Law,
including Federal and state securities Laws.

 

11.08.     Right of Setoff. If an Event of
Default shall have occurred and be continuing, each Lender, the L/C Issuer and
each of their respective Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by applicable law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final, in whatever currency) at any time held and other obligations (in
whatever currency) at any time owing by such Lender, the L/C Issuer or any such
Affiliate to or for the credit or the account of the Borrower or any other Loan
Party against any and all of the obligations of the Borrower or such Loan Party
now or hereafter existing under this Agreement or any other Loan Document to
such Lender or the L/C Issuer, irrespective of whether or not such Lender or the
L/C Issuer shall have made any demand under this Agreement or any other Loan
Document and although such obligations of the Borrower or such Loan Party may
be contingent or unmatured or are owed to a branch or office of such Lender or
the L/C Issuer different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of each Lender, the L/C Issuer and
their respective Affiliates under this Section are in addition to other rights
and remedies (including other rights of setoff) that such Lender, the L/C
Issuer or their respective Affiliates may have. Each Lender and the L/C Issuer
agrees to notify the Borrower and the Administrative Agent promptly after any
such setoff and application, provided that the failure to give such notice
shall not affect the validity of such setoff and application.

 

11.09.     Interest Rate Limitation.
Notwithstanding anything to the contrary contained in any Loan Document, the
interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the “Maximum
Rate”). If the Administrative Agent or any Lender shall receive interest in
an amount that exceeds the Maximum Rate, the excess interest shall be applied
to the principal of the Loans or, if it exceeds such unpaid principal, refunded
to the Borrower. In determining whether the interest contracted for, charged,
or received by the Administrative Agent or a Lender exceeds the Maximum Rate,
such Person may, to the extent permitted by applicable Law, (a)
characterize any payment that is not principal as an expense, fee, or premium
rather than interest, (b) exclude voluntary prepayments and the effects
thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal
parts the total amount of interest throughout the contemplated term of the
Obligations hereunder.

 

11.10.     Counterparts; Integration; Effectiveness.
This Agreement may be executed in counterparts (and by different parties hereto
in different counterparts), each of which shall constitute an original, but all
of which when taken together shall constitute a single contract. This Agreement
and the other Loan Documents constitute the entire contract among

 

128

 

the parties relating to the
subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except
as provided in Section 4.01, this Agreement shall become effective when
it shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof that, when taken
together, bear the signatures of each of the other parties hereto. Delivery of
an executed counterpart of a signature page of this Agreement by telecopy shall
be effective as delivery of a manually executed counterpart of this Agreement.

 

11.11.     Survival of Representations and
Warranties. All representations and warranties made hereunder and in any
other Loan Document or other document delivered pursuant hereto or thereto or
in connection herewith or therewith shall survive the execution and delivery
hereof and thereof as of the date such representation and warranties were last
made or reaffirmed. Such representations and warranties have been or will be
relied upon by the Administrative Agent and each Lender, regardless of any
investigation made by the Administrative Agent or any Lender or on their behalf
and notwithstanding that the Administrative Agent or any Lender may have had
notice or knowledge of any Default at the time of any Credit Extension, and
shall continue in full force and effect as of the date such representation and
warranties were last made or reaffirmed as long as any Loan or any other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit
shall remain outstanding.

 

11.12.     Severability. If any provision of
this Agreement or the other Loan Documents is held to be illegal, invalid or
unenforceable, (a) the legality, validity and enforceability of the remaining
provisions of this Agreement and the other Loan Documents shall not be affected
or impaired thereby and (b) the parties shall endeavor in good faith
negotiations to replace the illegal, invalid or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to
that of the illegal, invalid or unenforceable provisions. The invalidity of a
provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

11.13.     Replacement of Lenders. If any
Lender requests compensation under Section 3.04, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if
any Lender is a Defaulting Lender, then the Borrower may, at its sole expense
and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and
subject to the restrictions contained in, and consents required by, Section
11.06), all of its interests, rights and obligations under this Agreement
and the related Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

 

(a)           the Borrower shall have paid to the
Administrative Agent the assignment fee specified in Section 11.06(b);

 

(b)           such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and L/C
Advances, accrued interest thereon, accrued fees and all other amounts payable
to it hereunder and under the other Loan Documents (including any

 

129

 

amounts under Section
3.05) from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or the Borrower (in the case of all other amounts);

 

(c)           in the case of any such assignment
resulting from a claim for compensation under Section 3.04 or payments
required to be made pursuant to Section 3.01, such assignment will
result in a reduction in such compensation or payments thereafter; and

 

(d)           such assignment does not conflict
with applicable Laws.

 

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

 

11.14.     Governing Law; Jurisdiction, Etc.

 

(a)           GOVERNING LAW. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

 

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

 

(c)           WAIVER OF VENUE. THE BORROWER
AND EACH OTHER LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT
REFERRED TO IN PARAGRAPH (B) OF

 

130

 

THIS SECTION.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)           SERVICE OF PROCESS. EACH PARTY HERETO
IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 11.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY
PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW

 

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

 

11.16.     No Advisory or Fiduciary Responsibility.
In connection with all aspects of each transaction contemplated hereby, the
Borrower and Holdings each acknowledge and agree, and acknowledge their
respective Affiliates’ understanding, that: (i) the credit facilities provided
for hereunder and any related arranging or other services in connection
therewith (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document) are an arm’s-length
commercial transaction between the Borrower, Holdings and their respective
Affiliates, on the one hand, and the Administrative Agent and the Arrangers, on
the other hand, and each of the Borrower and Holdings is capable of evaluating
and understanding and understands and accepts the terms, risks and conditions
of the transactions contemplated hereby and by the other Loan Documents
(including any amendment, waiver or other modification hereof or thereof); (ii)
in connection with the process leading to such transaction, the Administrative
Agent and, each Arranger each is and has been acting solely as a principal and
is not the financial advisor, agent or fiduciary, for the Borrower, Holdings or
any of their respective Affiliates, stockholders, creditors or employees or any
other Person; (iii) neither the Administrative Agent nor, any Arranger has
assumed or will assume an advisory, agency or fiduciary responsibility in favor
of the Borrower or Holdings with respect to any of the transactions
contemplated hereby or the process leading thereto, including with respect to any
amendment, waiver or other modification hereof or of any other Loan Document
(irrespective of whether the Administrative Agent or any Arranger has advised
or is currently advising the Borrower, Holdings or any of their respective
Affiliates on other matters) and neither the

 

131

 

Administrative
Agent nor any Arranger has any obligation to the Borrower, Holdings or any of
their respective Affiliates with respect to the transactions contemplated
hereby except those obligations expressly set forth herein and in the other
Loan Documents; (iv) the Administrative Agent and the Arrangers and their
respective Affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of the Borrower, Holdings and their
respective Affiliates, and neither the Administrative Agent nor any Arranger
has any obligation to disclose any of such interests by virtue of any advisory,
agency or fiduciary relationship; and (v) the Administrative Agent and the
Arrangers have not provided and will not provide any legal, accounting,
regulatory or tax advice with respect to any of the transactions contemplated
hereby (including any amendment, waiver or other modification hereof or of any
other Loan Document) and each of the Borrower and Holdings has consulted its
own legal, accounting, regulatory and tax advisors to the extent it has deemed
appropriate. Each of the Borrower and Holdings hereby waives and release, to
the fullest extent permitted by law, any claims that it may have against the
Administrative Agent and the Arrangers with respect to any breach or alleged
breach of agency or fiduciary duty.

 

11.17.     USA PATRIOT Act Notice. Each Lender
that is subject to the Act (as hereinafter defined) and the Administrative
Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower
that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies each Loan Party, which information includes
the name and address of each Loan Party and other information that will allow
such Lender or the Administrative Agent, as applicable, to identify each Loan
Party in accordance with the Act.

 

132

 

IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as of the date first above written.

 

	
   

  	
  RISKMETRICS GROUP, INC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ M. Ethan
  Berman

  
	
   

  	
  Name:

  	
  M. Ethan
  Berman

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  RISKMETRICS GROUP HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ M. Ethan
  Berman

  
	
   

  	
  Name:

  	
  M. Ethan
  Berman

  
	
   

  	
  Title:

  	
  President

  
				

 

 

[First
Lien Credit Agreement]

 

S-1

 

	
   

  	
  BANK OF
  AMERICA, N.A., as

  
	
   

  	
  Administrative
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  Klawinski

  
	
   

  	
  Name:

  	
  Robert Klawinski

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  
				

 

 

[First
Lien Credit Agreement]

 

S-2

 

	
   

  	
  BANK OF AMERICA, N.A., as a Lender, L/C Is-

  
	
   

  	
  suer and
  Swing Line Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Robert
  Klawinski

  
	
   

  	
  Name:

  	
  Robert
  Klawinski

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  
				

 

 

[First
Lien Credit Agreement]

 

S-3

 

	
   

  	
  CREDIT
  SUISSE, CAYMAN ISLANDS

  
	
   

  	
  BRANCH, as a
  Revolving Credit Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James
  Morin

  
	
   

  	
  Name:

  	
  James Morin

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nupur Kumar

  
	
   

  	
  Name:

  	
  Nupur Kumar

  
	
   

  	
  Title:

  	
  Associate

  
				

 

 

[First
Lien Credit Agreement]

 

S-4

 

	
   

  	
  GENERAL ELECTRIC CAPITAL

  
	
   

  	
  CORPORATION,
  as a Revolving Credit Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark E. Blankstein

  
	
   

  	
  Name:

  	
  Mark E. Blankstein

  
	
   

  	
   

  	
  Duly Authorized Signatory

  
	
   

  	
  Title:

  	
   

  
				

 

 

[First
Lien Credit Agreement]

 

S-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]