Document:

Bombardier Recreational Products Inc - Exhibit 4.1 - Prepared by TNT
Filings Inc.

 

EXECUTION COPY 

AMENDED AND RESTATED CREDIT AGREEMENT

Cdn$250,000,000 Revolving Facilities

US$50,000,000 Term Facility

Dated as of December 18, 2003

Amended and Restated as of February 9, 2005

Among

Bombardier Recreational Products Inc.,

as Canadian Borrower,

BRP US Inc.,

as U.S. Revolving Borrower,

the Guarantors party hereto from time to time,

Merrill Lynch & Co.,

Merrill Lynch, Pierce, Fenner & Smith Incorporated,

as Global Transaction Coordinator,

Royal Bank of Canada,

as Canadian Transaction Coordinator,

Merrill Lynch & Co.,

Merrill Lynch, Pierce, Fenner & Smith Incorporated,

and

UBS Securities LLC,

as Joint Book Runners and Lead Arrangers of the New Term Facility,

BMO Nesbitt Burns Inc.

and

Royal Bank of Canada,

as Joint Book Runners and Lead Arrangers of the Revolving Facilities,

Bank of Montreal,

as Administrative Agent,

Merrill Lynch & Co.,

Merrill Lynch, Pierce, Fenner & Smith Incorporated,

UBS Securities LLC

and

Royal Bank of Canada,

as Co‐Syndication Agents,

and

General Electric Capital Corporation,

as Documentation Agent,

and

the Lenders party hereto from time to time

Cahill Gordon & Reindel
llp

80 Pine Street

New York, New York  10005

TABLE OF CONTENTS

This Table of Contents is not part of the Agreement to which it is attached
but is inserted for convenience of reference only. 

	 	 	Page
	 	 	 
	ARTICLE 1
	DEFINITIONS AND
    ACCOUNTING TERMS
	 	 	 
	1.1	Definitions	2
	1.2	Computation of Time Periods and Other
    Definitional Provisions	49
	1.3	Accounting Terms	49
	 	 	 
	ARTICLE 2
	CREDIT FACILITY
	 	 	 
	2.1	Revolving Loan Commitments	50
	2.2	Term Loan Commitments	50
	2.2A	Incremental Credit Extensions	50
	2.3	Availability	52
	2.4	Method of Borrowing	53
	2.5	Funding of Loans	55
	2.6	Bankers' Acceptances	55
	2.7	Voluntary Reductions of Committed Amount	59
	2.8	Mandatory Cancellation or Reductions in
    Committed Amount	59
	2.9	Notes and Loan Accounts	59
	2.10	LIBOR Loans and EUROLIBOR Loans	60
	2.11	Letters of Credit	61
	2.12	Swingline Facilities	65
	 	 	 
	ARTICLE 3
	GENERAL
    PROVISIONS APPLICABLE TO LOANS
	 	 	 
	3.1	Interest	67
	3.2	Conversions and Continuations	68
	3.3	Minimum Amounts and Maximum Number of
    Outstanding Loans	69
	3.4	Hedging Agreements	70
	3.5	Place and Manner of Payments	70
	3.6	Voluntary Prepayments	71
	3.7	Mandatory Repayments	72
	3.8	Disposition Events and Casualty Events	73
	3.9	Fees	75
	3.10	Maturity of Facilities	76
	3.11	Computations of Interest	76
	3.12	Pro Rata Treatment	76
	3.13	Sharing of Payments	77
	3.14	Capital Adequacy	78
	3.15	Illegality	79

-i- 

	 	 	Page
	3.16	Reserve Requirements	79
	3.17	Taxes	80
	3.18	Mitigation Obligations; Replacement of
    Lenders	82
	3.19	Indemnity Regarding LIBOR Loans and EUROLIBOR
    Loans	83
	3.20	Compliance with the Interest Act (Canada)	83
	 	 	 
	ARTICLE 4
	CONDITIONS
    PRECEDENT
	 	 	 
	4.1	Conditions to Effectiveness of Original
    Credit Agreement	84
	4.2	Conditions to Initial Extension of Credit
    Under Original Credit Agreement	84
	4.3A	Conditions to Effectiveness	84
	4.3B	Conditions to All Extensions of Credit	86
	 	 	 
	ARTICLE 5
	REPRESENTATIONS
    AND WARRANTIES
	 	 	 
	5.1	Financial Condition	87
	5.2	Organization and Good Standing	88
	5.3	Due Authorization	88
	5.4	No Conflicts	88
	5.5	Consents	88
	5.6	No Default	89
	5.7	Ownership	89
	5.8	Indebtedness	89
	5.9	Litigation	89
	5.10	Taxes	89
	5.11	Compliance with Law	90
	5.12	Pension Plans and ERISA	90
	5.13	Subsidiaries	91
	5.14	Use of Proceeds; Margin Stock	91
	5.15	Government Regulation	92
	5.16	Environmental Matters	92
	5.17	Intellectual Property	93
	5.18	Investments	93
	5.19	Insurance	93
	5.20	Material Contracts	94
	5.21	Employee Matters	94
	5.22	Security Interest; Absence of Financing
    Statements; Etc	94
	5.23	Licenses and Permits	94
	5.24	True and Complete Disclosure	95
	5.25	Solvency	95
	5.26	Real Estate	95
	5.27	Leases	97
	5.28	Financial Condition; Etc	98
	5.29	Holdco	98
	5.30	Relevant Borrower's Accounts	98
	5.31	Deemed Repetition	99
	5.32	Contingent Obligations	99
	5.33	Internal Controls	99
	5.34	Suppliers	99

-ii- 

	 	 	Page
	ARTICLE 6
	AFFIRMATIVE
    COVENANTS
	 	 	 
	6.1	Information Covenants	99
	6.2	Conduct of Business and Maintenance of
    Existence	103
	6.3	Books and Records	103
	6.4	Compliance with Law	103
	6.5	Payment of Taxes and Other Indebtedness	104
	6.6	Insurance	105
	6.7	Maintenance of Property	106
	6.8	Use of Proceeds	106
	6.9	Audits/Inspections	106
	6.10	Additional Obligors and Material Subsidiaries	107
	6.11	Security Interests, Further Assurances	108
	6.12	Hedging Requirements	109
	6.13	Post - Amendment Effective Date Obligations	109
	 	 	 
	ARTICLE 7
	NEGATIVE COVENANTS
	 	 	 
	7.1	Indebtedness	109
	7.2	Liens and Negative Pledges	110
	7.3	Nature of Business	110
	7.4	Mergers, Consolidations, Leases and Sales	110
	7.5	Sale and Leaseback Transactions	112
	7.6	Investments	112
	7.7	Dividends	112
	7.8	Capital Expenditures	113
	7.9	Transactions with Affiliates	114
	7.10	Fiscal Year; Organizational Documents	115
	7.11	Limitations on Restrictions on Payment of
    Dividends	115
	7.12	Modifications of Certain Documents, Etc	115
	7.13	Limitation on Activities of Holdco and Other
    Companies	116
	7.14	Payments or Prepayments of Indebtedness or
    Modification of Debt Documents	116
	7.15	Contingent Obligations	117
	7.16	Hedging Agreements	118
	7.17	Financial Covenants	118
	 	 	 
	ARTICLE 8
	EVENTS OF DEFAULT
	 	 	 
	8.1	Events of Default	119
	8.2	Allocation of Payments After Event of Default	122
	 	 	 
	ARTICLE 9
	GUARANTEE
	 	 	 
	9.1	The Guarantee	123
	9.2	Obligations Unconditional	123
	9.3	Reinstatement	124
	9.4	Subrogation, Subordination	125

-iii- 

	 	 	Page
	9.5	Remedies	125
	9.6	Instrument for the Payment of Money	125
	9.7	Continuing Guarantee	125
	9.8	General Limitation on Guarantee Obligations	125
	 	 	 
	ARTICLE 10
	AGENCY PROVISIONS
	 	 	 
	10.1	Appointment	126
	10.2	Delegation of Duties; Appointment of Agents	127
	10.3	Duties	127
	10.4	Exculpatory Provisions	127
	10.5	Reliance on Communications	128
	10.6	Notice of Default	128
	10.7	Non-Reliance on Agent and Other Lenders	128
	10.8	Indemnification	129
	10.9	Agents in Their Individual Capacity	129
	10.10	Successor Agent	129
	 	 	 
	ARTICLE 11
	MISCELLANEOUS
	 	 	 
	11.1	Notices	130
	11.2	Right of Set-off	130
	11.3	Benefit of Agreement; Assignments and
    Participations	130
	11.4	No Waiver; Remedies Cumulative	133
	11.5	Payment of Expenses; Indemnification	134
	11.6	Amendments; Waivers and Consents	136
	11.7	Counterparts	137
	11.8	Headings	137
	11.9	Defaulting Lender	137
	11.10	Survival of Indemnification, Representations
    and Warranties and Agent Fee Letter	137
	11.11	Judgment Currency	137
	11.12	Governing Law; Jurisdiction	138
	11.13	Waiver of Jury Trial	138
	11.14	Severability	138
	11.15	Entirety	138
	11.16	Binding Effect	138
	11.17	Credit Documents	139
	11.18	Confidentiality	139
	11.19	Effect of the Amendment and Restatement of
    the Original Credit Agreement; Waiver	140
	11.20	Patriot Act	140

	 	 
	 	 
	Schedules and
    Exhibits	 
	 	 
	Schedule 1.1	Lenders and
    Commitments
	Schedule 1.1(a)	Intercompany
    Loans
	Schedule 3.7(b)	Periodic
    Repayments
	Schedule
    4.3A(e)(ii)	Local Counsel
	Schedule 5.9	Litigation
	Schedule 5.10	Taxes

-iv- 

	Schedule 5.13	Subsidiaries and
    Guarantors
	Schedule 5.16	Environmental
    Matters
	Schedule 5.17	Intellectual
    Property
	Schedule 5.18	Existing
    Investments
	Schedule 5.19	Self-Insurance
	Schedule 5.20	Existing Material
    Contracts
	Schedule 5.21	Employee Matters
	Schedule 5.26(a)	Real Property
	Schedule 5.26(c)	Takings
	Schedule 5.26(d)	Assessments
	Schedule 5.26(e)	Joint Assessments
	Schedule 5.26(g)	Defects
	Schedule
    5.26(h)(i)	Possessory
    Interests
	Schedule
    5.26(h)(ii)	Options
	Schedule
    5.26(h)(iii)	Restrictions on
    Transferability
	Schedule
    5.26(i)(i)	Public Utility
    Locations
	Schedule 5.26(j)	Violation of
    Covenants
	Schedule 5.27(a)	Leases
	Schedule 5.27(b)	Lease Violations
	Schedule 5.27(c)	Lease Consents
	Schedule 5.28(b)	Material
    Liabilities
	Schedule 5.28(c)	Material Adverse
    Effect
	Schedule 5.29	Capital of Holdco
	Schedule 5.30	Relevant
    Borrower's Account
	Schedule 6.13(f)	Leased Real
    Property
	Schedule 7.1	Existing
    Indebtedness
	Schedule 7.2	Existing Liens
	Schedule 7.5	Sale and
    Leaseback Transactions
	Schedule 7.9	Closing Date
    Transactions
	Schedule 7.15(c)	Contingent
    Obligations
	Schedule 11.1(a)	Notice Addresses
	Schedule 11.19(b)	Changes to Entity
    Names
	 	 
	Exhibit A	Form of
    Assignment Agreement
	Exhibit B-1	Form of Canadian
    Mortgage
	Exhibit B-2	Form of U.S.
    Mortgage
	Exhibit D-1	Form of Canadian
    Security Agreement
	Exhibit D-2	Form of U.S.
    Security Agreement
	Exhibit E	Form of Joinder
    Agreement
	Exhibit F	Form of Note
	Exhibit G	Form of Notice of
    Borrowing
	Exhibit H	Form of Notice of
    Continuation/Conversion
	Exhibit I	Form of Escrow
    Agreement
	Exhibit K	Form of Notice of
    Prepayment
	Exhibit L-1	Form of Canadian
    Perfection Certificate
	Exhibit L-2	Form of U.S.
    Perfection Certificate
	Exhibit M	Form of Solvency
    Certificate
	Exhibit N	Form of Officer's
    Certificate
	Exhibit O	Form of
    Intercompany Note
	Exhibit P	Form of Mortgage
    Amendment

-v- 

AMENDED AND RESTATED CREDIT AGREEMENT 

                        This AMENDED AND RESTATED
CREDIT AGREEMENT (this "Agreement") is dated as of December 18, 2003
among Bombardier Recreational Products Inc., a corporation existing under the
laws of Canada (the "Canadian Borrower"), as Canadian Borrower, BRP US
Inc. (formerly known as Bombardier Motor Corporation of America), a Delaware
corporation (the "U.S. Revolving Borrower" and, together with the
Canadian Borrower, the "Borrowers"), as U.S. Revolving Borrower, the
Guarantors (as defined) party hereto from time to time, each of the lenders that
is a signatory hereto identified under the caption "LENDERS" on the signature
pages hereto or that shall become a "Lender" hereunder (individually, a "Lender"
and, collectively, the "Lenders"), Merrill Lynch & Co., Merrill
Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch"), as
Global Transaction Coordinator, Royal Bank of Canada, as Canadian
Transaction Coordinator, Merrill Lynch and UBS Securities LLC, as
Joint Book Runners and Lead Arrangers of the New Term Facility, BMO Nesbitt
Burns Inc. and Royal Bank of Canada, as Joint Book Runners and Lead
Arrangers of the Revolving Facilities, Bank of Montreal, as
Administrative Agent (the "Administrative Agent"), and Merrill Lynch,
UBS Securities LLC and Royal Bank of Canada, as Co-Syndication
Agents, and is amended and restated as of February 9, 2005. 

RECITALS 

                        WHEREAS,
the Lenders, Merrill Lynch, Royal Bank of Canada, UBS Securities LLC, BMO
Nesbitt Burns Inc., Bank of Montreal, the Canadian Borrower, BRP Holding LP, as
the U.S. Term Borrower (the "Original U.S. Term Borrower"), BRP Holdings
(USA) Inc. (formerly known as BRP (USA) Inc.), as the U.S. Revolving Borrower
(the "Original Revolving Borrower"), and certain other affiliates of the
Canadian Borrower, as guarantors, originally entered into that certain Credit
Agreement dated as of December 18, 2003 (the "Original Credit Agreement")
prior to and in connection with the consummation of the BRP Acquisition (as
defined) in order to obtain revolving credit facilities for working capital and
general corporate purposes and non-revolving term facilities for the purpose of
financing a portion of the BRP Acquisition and paying related fees and expenses;

                        WHEREAS the Lenders made the
Facilities (as defined in the Original Credit Agreement) available to the
Canadian Borrower, the Original U.S. Revolving Borrower and the Original U.S.
Term Borrower (together, the "Original Borrowers") on the terms and
conditions set forth in the Original Credit Agreement, and the BRP Acquisition
was consummated on December 18, 2003 as contemplated thereby; 

                        WHEREAS, in
connection herewith the Canadian Borrower and the Original U.S. Term Borrower
are prepaying the entire outstanding amount of the Canadian Term Facility and
the U.S. Term Facility under the Original Credit Agreement (each as defined
therein); 

                        WHEREAS, the U.S. Revolving
Borrower is becoming the primary obligor under the U.S. Revolving Facility;

                        WHEREAS,
the Lenders, Merrill Lynch, Royal Bank of Canada, UBS Securities LLC, BMO
Nesbitt Burns Inc., Bank of Montreal, the Borrowers and the Guarantors are
entering into this Agreement in order to amend and restate the Original Credit
Agreement to provide for the extension of a new term loan facility as provided
herein and to make such other amendments as are evidenced hereby; and 

                        WHEREAS, in connection
herewith the Borrowers will also enter into amendments to certain of the Credit
Documents; 

                        NOW THEREFORE,
in consideration of the premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree that the Original Credit Agreement is hereby amended and restated in its
entirety as follows: 

ARTICLE 1 

DEFINITIONS AND ACCOUNTING TERMS 

1.1 Definitions. 

                        As used herein, including the
recitals and Schedules hereto, the following terms shall have the meanings set
out below unless the context otherwise requires: 

                        "Acceptance Note" 
has the meaning set forth in Section 2.6(j)(ii). 

                        "Acquired Indebtedness"
means (i) with respect to any Person that becomes a Subsidiary of the Canadian
Borrower (or amalgamates with or is merged into the Canadian Borrower or any of
its Subsidiaries) after the Effective Date, Indebtedness of such Person or any
of its Subsidiaries; provided that such Indebtedness was not incurred in
connection with, or in contemplation of, such Person becoming a Subsidiary of
the Canadian Borrower (or being amalgamated with or merged into the Canadian
Borrower or any of its Subsidiaries) and (ii) with respect to the Canadian
Borrower or any of its Subsidiaries, any Indebtedness assumed by the Canadian
Borrower or any of its Subsidiaries in connection with the acquisition of any
assets from another Person (other than the Canadian Borrower or any of its
Subsidiaries) after the Effective Date; provided that such Indebtedness
was not incurred by such Person in connection with, or in contemplation of, such
acquisition. 

                        "Acquisition" means, with
respect to any Person, any transaction or series of related transactions for the
direct or indirect (a) acquisition of all or substantially all of the Property
of any other Person, or of any business or division of any other Person, (b)
acquisition of more than 50% of the Equity Interests of any other Person, or
otherwise causing any other Person to become a Subsidiary of such Person, or (c)
merger or consolidation or any other combination with any other Person. 

                        "Acquisition
Consideration" means the purchase consideration for any Acquisition and all
other payments made and liabilities incurred by any Person or any of its
Subsidiaries in exchange for, or as part of, or in connection with, any
Acquisition, whether paid in cash or by exchange of Equity Interests or of
assets or otherwise and whether payable on or prior to the consummation of such
Acquisition or constituting Deferred Acquisition Obligations. 

                        "Additional Intercompany Notes"
means promissory notes, substantially in the form of 

Exhibit O. 

                        "Additional Lender" has the
meaning set forth in Section 2.2A. 

                        "Additional Subordinated Debt"
means subordinated or senior subordinated Indebtedness of Holdco or the Canadian
Borrower incurred after the Closing Date that (i) requires no scheduled payment
of principal prior to the date that is one year after the Term Loan Maturity
Date and (ii) contains subordination provisions and other non-pricing terms and
conditions no less favorable to the Lenders than the analogous provisions of the
Senior Subordinated Notes. 

- 2 -

                        "Adjusted Net
Income" means, for any period, Consolidated Net Income for such period,
adjusted by excluding (to the extent taken into account in the calculation of
such consolidated net income (loss)) the effect of 

                          (a)        
  gains or losses for such period from Excluded Dispositions and Dispositions
  not in the ordinary course of business, and the tax consequences thereof, 

                          (b)        
  any nonrecurring, unusual or extraordinary items of income (other than the
  proceeds of business interruption insurance) or expense for such period and
  the tax consequences thereof, 

                          (c)        
  the net income of any Subsidiary to the extent that the declaration or payment
  of dividends or similar distribution by such Subsidiary was not for the
  relevant period permitted by operation of the terms of its Organizational
  Documents or any agreement, instrument, judgment, decree, order, statute, rule
  or governmental regulation applicable to such Subsidiary or its stockholders,
  

                          (d)        
  unrealized gains and losses due solely to fluctuations in currency values and
  the related tax effects according to GAAP, and 

                          (e)        
  the cumulative effect of a change in accounting principles during such period.
  

                        "Adjusting Participation"
has the meaning set forth in Section 3.13. 

                        "Administrative Agent"
means Bank of Montreal (or any successor thereto) in such capacity or any
successor administrative agent appointed pursuant to Section 10.10. 

                        "Affiliate" means, with
respect to any Person, any other Person directly or indirectly controlling,
controlled by or under direct or indirect common control with such specified
Person. A Person shall be deemed to control a corporation if such Person
possesses, directly or indirectly, the power (i) to vote 10% or more of the
securities having ordinary voting power for the election of directors of such
corporation or (ii) to direct or cause the direction of the management and
policies of such corporation, whether through the ownership of voting
securities, by contract or otherwise. For purposes of this Agreement, neither
Bombardier Inc. nor Bombardier Capital Inc. and their Subsidiaries will be
deemed to be an Affiliate of Holdco or any of its Subsidiaries for so long as
Bain or Bain and Caisse together own, directly or indirectly, Equity Interests
of Holdco having a greater percentage of the voting power of the outstanding
Equity Interests of Holdco than is owned by Beaudier. 

                        "Affiliate Transaction" has
the meaning set forth in Section 7.9. 

                        "Agent Fee Letter" means
that certain letter agreement dated November 11, 2003 among Holdco, Merrill
Lynch Capital Corporation, Merrill Lynch, UBS Loan Finance LLC, UBS Securities
LLC, Bank of Montreal and Royal Bank of Canada. 

                        "Agents" means,
collectively, the Administrative Agent, the Joint Book Runners, the Global
Transaction Coordinator, the Canadian Transaction Coordinator, the Lead
Arrangers, the Co-Syndication Agents and any sub-agent, other agent or trustee
appointed pursuant to Section 10.2, and "Agent" means any one of them as
the context may require. 

                        "Aggregate Committed Amount"
means, at any time, the sum of the Canadian Revolving Committed Amount, the
U.S. Revolving Committed Amount and the New Term Committed Amount. 

- 3 -

                        "Agreement" means this
Amended and Restated Credit Agreement, as the same may be amended, supplemented
or restated from time to time in accordance with the provisions hereof. 

                        "Amendment Effective Date"
has the meaning set forth in Section 4.3A. 

                        "Amendment Fee Letter"
means the fee letter dated the Amendment Effective Date between the Canadian
Borrower and then Lenders named therein. 

                        "Applicable Canadian Pension
Legislation" means, at any time, any applicable Canadian federal or
provincial pension legislation, including all regulations made thereunder and
all rules, regulations, rulings, guidelines, directives and interpretations made
or issued by any Governmental Authority in Canada having or asserting
jurisdiction in respect thereof, each as amended or replaced from time to time.

                        "Applicable Insolvency Law"
means the U.S. Bankruptcy Code in Title 11 of the United States Code, the
Bankruptcy and Insolvency Act (Canada), the Companies' Creditors
Arrangement Act (Canada), or any statute or law (including any applicable
corporations legislation) of any applicable jurisdiction, as now or hereafter in
effect, relating to liquidation, bankruptcy, insolvency, moratoria or creditors'
rights, including any thereof pursuant to which a Person may seek a stay,
moratorium, compromise, arrangement, restructuring, renegotiation, reduction or
other similar relief from or in respect of the claims of such Person's
creditors, in each case, as amended or replaced from time to time. 

                        "Applicable Margin" means:

                          (a)        
  with respect to any Extension of Credit made on or after the Amendment
  Effective Date under the Revolving Facilities, the applicable amount
  (expressed in basis points per annum) for such Extension of Credit
  corresponding to the Total Leverage Ratio in effect as of the most recent
  Calculation Date as shown below: 

	 	
    TOTAL	
    TOTAL	
    TOTAL	
    TOTAL	
    TOTAL	
    TOTAL
	 	
    LEVERAGE	
    LEVERAGE	
    LEVERAGE	
    LEVERAGE	
    LEVERAGE	
    LEVERAGE
	 	
    RATIO	
    RATIO	
    RATIO	
    RATIO	
    RATIO	
    RATIO
	 	
    > 3.0x	
    
    3.0x and	
    
    2.75x and	
    
    2.50x and	
    
    2.25x and	
    
    2.0x
	 	 	
    > 2.75x	
    > 2.50x	
    > 2.25x	
    > 2.0x	 
	
    LIBOR or	
    300	
    275	
    250	
    225	
    200	
    175
	
    EUROLIBOR	 	 	 	 	 	 
	
    U.S. Base	
    200	
    175	
    150	
    125	
    100	
    75
	
    Rate	 	 	 	 	 	 
	
    U.S. Prime	
    200	
    175	
    150	
    125	
    100	
    75
	
    Rate	 	 	 	 	 	 
	
    Canadian	
    200	
    175	
    150	
    125	
    100	
    75
	
    Prime Rate	 	 	 	 	 	 
	
    Bankers'	
    300	
    275	
    250	
    225	
    200	
    175
	
    Acceptance	 	 	 	 	 	 
	
    Fee	 	 	 	 	 	 
	
    Letter of	
    300	
    275	
    250	
    225	
    200	
    175
	
    Credit Fee	 	 	 	 	 	 

                          (b)        
  (i) with respect to any Extension of Credit made under the New Term Facility
  during any period in which no Pushdown Holdco Debt is outstanding, 175 basis
  points per annum; 

                          (c)        
  with respect to any Extension of Credit made under the New Term Facility
  during any period in which Pushdown Holdco Debt is outstanding: 

- 4 -

                        (i)     if the
Ratings Condition is satisfied as of the most recent Calculation Date, the
applicable amount (expressed in basis points per annum) for such
Extension of Credit corresponding to the Total Pushdown Debt Leverage Ratio in
effect as of the most recent Calculation Date as shown below: 

	 	
    TOTAL	
    TOTAL	
    TOTAL	
    TOTAL	
    TOTAL
	 	
    PUSHDOWN	
    PUSHDOWN	
    PUSHDOWN	
    PUSHDOWN	
    PUSHDOWN
	 	
    DEBT LEV-	
    DEBT LEV-	
    DEBT LEV-	
    DEBT LEV-	
    DEBT LEV-
	 	
    ERAGE	
    ERAGE	
    ERAGE	
    ERAGE	
    ERAGE
	 	
    RATIO	
    RATIO	
    RATIO	
    RATIO	
    RATIO
	 	
    > 5.0x	
    
    5.0x and	
    
    4.0x and	
    
    3.0x and	
    
    2.4x
	 	 	
    > 4.0x	
    > 3.0x	
    > 2.4x	 
	
    LIBOR	
    275	
    250	
    225	
    200	
    175
	
    U.S. Base	
    175	
    150	
    125	
    100	
    75
	
    Rate	 	 	 	 	 
	
    U.S. Prime	
    175	
    150	
    125	
    100	
    75
	
    Rate	 	 	 	 	 

                        (ii)     with
respect to any Extension of Credit made under the New Term Facility, if the
Ratings Condition is not satisfied as of the most recent Calculation Date, the
applicable amount (expressed in basis points per annum) for such
Extension of Credit corresponding to the Total Leverage Pushdown Debt Ratio in
effect as of the most recent Calculation Date as shown below: 

	 	
    TOTAL	
    TOTAL	
    TOTAL	
    TOTAL	
    TOTAL
	 	
    PUSHDOWN	
    PUSHDOWN	
    PUSHDOWN	
    PUSHDOWN	
    PUSHDOWN
	 	
    DEBT LEV-	
    DEBT LEV-	
    DEBT LEV-	
    DEBT LEV-	
    DEBT LEV-
	 	
    ERAGE	
    ERAGE	
    ERAGE	
    ERAGE	
    ERAGE
	 	
    RATIO	
    RATIO	
    RATIO	
    RATIO	
    RATIO
	 	
    > 5.0x	
    
    5.0x and	
    
    4.0x and	
    
    3.0x and	
    
    2.4x
	 	 	
    > 4.0x	
    > 3.0x	
    > 2.4x	 
	
    LIBOR	
    275	
    250	
    225	
    225	
    200
	
    U.S. Base	
    175	
    150	
    125	
    125	
    100
	
    Rate	 	 	 	 	 
	
    U.S. Prime	
    175	
    150	
    125	
    125	
    100
	
    Rate	 	 	 	 	 

The "Ratings Condition" shall be satisfied if the rating of the
Facilities by either Moody's or S&P as of any Calculation Date is not lower than
B1 or B+ respectively. The Applicable Margin for any such Extension of Credit
shall be determined and adjusted as of each date on which the Officer's
Certificate is provided in accordance with Section 6.1(c) (each such date, a "Delivery
Date") based on the Total Leverage Ratio or Total Pushdown Debt Leverage
Ratio, as the case may be, as of the end of the most recent Quarter (each such
date, a "Calculation Date"); provided that if the Officer's
Certificate required by Section 6.1(c) is not provided on or before the date
then required by Section 6.1(c), the Applicable Margin for all Extensions of
Credit on and after such date shall be the highest Applicable Margin until such
time as such Officer's Certificate is provided, whereupon the Applicable Margin
shall be determined by the Total Leverage Ratio or Total Pushdown Debt Leverage
Ratio, as the case may be, as of the Calculation Date evidenced by such
Officer's Certificate. Subject to the preceding sentence, each Applicable Margin
for any Extension of Credit shall be effective from one Delivery Date until the
next Delivery Date. Any adjustment in such Applicable Margin shall be applicable
to all relevant Extensions of Credit from and including each new Delivery Date
to but excluding the next Delivery Date without the necessity of any notice
being provided. 

- 5 -

                               
''Assignment Agreement'' means an agreement substantially in
the form of Exhibit A entered into by a Lender and another Person in
accordance with Section 11.3(b) pursuant to which all or a portion of such
Lender's rights and obligations, and all or any part of the Commitment of such
Lender in respect of any or all of the Facilities, is assigned by such Lender to
such other Person.

''Austrian Share Pledge Agreement'' means the share pledge
agreement dated December 18, 2003 between BRP (Luxembourg) 5 S.à r.l. and the
Administrative Agent.

''BA Discount Proceeds'' means, in respect of any Bankers'
Acceptance being accepted and purchased or any Acceptance Note issued in favor
of and purchased by a Relevant Lender on any Business Day pursuant to
Section 2.6, an amount (rounded up to the nearest whole Canadian cent, and with
one-half of one Canadian cent being rounded up) calculated on such Business Day
by multiplying:

(a)

the Face Amount of such Bankers' Acceptance or Acceptance Note;
by

(b)

the quotient (rounded up or down to the nearest fifth decimal
place with 0.000005 being rounded up) equal to one divided by the sum of one
plus the product of:

(i)

the applicable BA Rate (expressed as a decimal); and

(ii)

a fraction, the numerator of which is the number of days in the
Interest Period of such Bankers' Acceptance or Acceptance Note and the
denominator of which is 365.

''BA Rate'' means, for any particular Interest Period, in
respect of Bankers' Acceptance Loans,

(i)

by Lenders which are Schedule I Lenders, the arithmetic average
of the discount rates per annum that appear on the display page
designated as the CDOR Page (or any replacement page) by Reuters Money Market
Service (or its successor) as of 10:00 a.m. (Toronto, Ontario, time) on the date
of determination in respect of such term for value on the first day of such
Interest Period as reported by the Administrative Agent or, in the event such
display page is unavailable or does not display a rate for the appropriate
Interest Period, the average of the rates quoted by the Schedule I Reference
Lenders as of 10:00 a.m. (Toronto, Ontario time) for value on the first day of
such Interest Period; and

(ii)

by Lenders which are not Schedule I Lenders or which issue
Acceptance Notes, the lesser of (x) the arithmetic average of the rates quoted
by non-Schedule I Reference Lenders as of 10:00 a.m. (Toronto, Ontario time) in
respect of such Interest Period for value on the first day of such Interest
Period and (y) the rate determined in accordance with paragraph (i) above plus
ten basis points.

''Bain'' means (i) Bain Capital Investors, LLC and its
Affiliates (provided that, for purposes of this definition, references in
the definition of ''Affiliate'' to 10% shall be deemed to be a majority),
including any investment partnership whose general partner or manager is
controlled by, or under direct or indirect common control with, any of the
foregoing Persons, and (ii) any officer, director, employee, partner, member or
stockholder of the manager or general partner of the Persons identified in
clause (i).

- 6 -

                               
''Bank of Canada Overnight Rate'' means, on any date, the
rate at which the Canadian Transaction Coordinator may borrow funds on an
overnight basis from the Bank of Canada for value on such date.

''Bankers' Acceptance'' or ''BA'' means a draft
in Canadian Dollars drawn by a Relevant Borrower and accepted by a Relevant
Lender in accordance with Section 2.6 and includes a depository bill made
originally payable to and deposited with the Canadian Depository for Securities
Limited pursuant to the Depository Bills and Notes Act (Canada).

''Bankers' Acceptance Loan'' means the advance of
funds to the Canadian Borrower by way of the acceptance and purchase by a
Relevant Lender as a Bankers' Acceptance of a draft or depository bill or by way
of the issuance by the Canadian Borrower and the purchase by a Relevant Lender
of an Acceptance Note, in each case, in accordance with Section 2.6.

''Base Amount'' has the meaning set forth in Section 7.8.

''basis point'' or ''bp'' means one one-hundredth of
one percent.

''Beaudier'' means (i) Beaudier Group and its Affiliates (provided
that, for purposes of this definition, references in the definition of
''Affiliate'' to 10% shall be deemed to be a majority), including any investment
partnership whose general partner or manager is controlled by, or under common
control with, any of the foregoing Persons, and (ii) any officer, director,
employee, partner, member or stockholder of the manager or general partner of
the Persons identified in clause (i).

''Beaudier Group'' means, on any date, any individual who
is, or the combination of individuals who are, descendants (as determined in
accordance with, and notwithstanding any other provision hereof, the law of
Québec) of Joseph-Armand Bombardier and the spouses, whether by marriage, civil
union or common law relationship, of such individuals and each trust created
solely for the benefit of any such individual or individuals, each of whom owns,
directly or indirectly, through the Family Holding Companies or one or more
Affiliates (provided that, for purposes of this definition, references in
the definition of ''Affiliate'' to 10% shall be deemed to be a majority), an
Equity Interest in Holdco or the Canadian Borrower.  For the avoidance of doubt,
a combination may be comprised of one such individual.

''Borrowers'' means, collectively, the Canadian Borrower
and the U.S. Revolving Borrower (each, a ''Borrower'').

''BRP Acquisition'' means the acquisition on December 18,
2003 by the Canadian Borrower and its Subsidiaries of substantially all of the
assets of the recreational products business of Bombardier Inc.

''BRP Acquisition Agreement'' means the Purchase Agreement
dated as of December 2, 2003 between Bombardier Inc. and the Canadian Borrower.

''BRP Segment'' means Bombardier Recreational Products, a
reportable segment of Bombardier Inc.

''Business Day'' means any day, other than a Saturday or a
Sunday or a statutory holiday in the relevant jurisdiction or jurisdictions,
and, where used in the context of a notice, delivery, payment or other
communication addressed to the Administrative Agent, which is also a day on
which banks are not required or authorized to close in New York, Toronto or
Montreal; and in the case of LIBOR Loans

- 7 -

and EUROLIBOR Loans, which is also a day on which banks are not required or
authorized to close in London, England, and which is a day on which dealings are
carried on in the London interbank market.

''Caisse'' means (i) Caisse de dépôt et placement du Québec
and its Affiliates (provided that, for purposes of this definition,
references in the definition of ''Affiliate'' to 10% shall be deemed to be a
majority), including any investment partnership whose general partner or manager
is controlled by, or under direct or indirect common control with, any of the
foregoing Persons, and (ii) any officer, director, employee, partner, member or
stockholder of the manager or general partner of the Persons identified in
clause (i).

''Calculation Date'' has the meaning set forth in the
definition of ''Applicable Margin.''

''Canadian Borrower'' means Bombardier Recreational
Products Inc. and its successors and permitted assigns.

''Canadian Dollars'' and ''Cdn$'' mean
dollars in lawful currency of Canada.

''Canadian Obligor'' means an Obligor incorporated under the
laws of Canada or any province thereof.

''Canadian Payment Branch'' has the meaning set forth in the
definition of ''Relevant Payment Branch.''

''Canadian Pension Event'' means, with respect to any
Canadian Plan, (a) the termination of such Canadian Plan or the taking of any
other action with respect to such Canadian Plan that, individually or in the
aggregate, could reasonably be expected to result in a net liability of the
Canadian Borrower or any of its Subsidiaries (after giving effect to the
implementation of any new Canadian Plan or Plans and any cost reductions that
are reasonably and in good faith expected to be realized after such termination
or other action), or (b) the failure to make full payment when due of all
amounts which, under the provisions of such Canadian Plan, any agreement
relating thereto or Requirement of Law, the Canadian Borrower or any of its
Subsidiaries is required to pay as contributions thereto.

''Canadian Perfection Certificate'' means a certificate
substantially in the form of Exhibit L-1.

''Canadian Plan'' means any plan, program, agreement or
arrangement that is a pension plan for the purposes of Applicable Canadian
Pension Legislation or under the Income Tax Act (Canada) (whether or not
registered under such law) that is maintained or contributed to, or to which
there is or may be an obligation to contribute, by the Canadian Borrower or any
of its Subsidiaries in respect of their respective employees in Canada.

''Canadian Prime Rate'' means, at any time, the greater of (i) the
variable rate per annum, expressed on the basis of a 365- or
366-day year, established or quoted from time to time by the Administrative
Agent as the reference rate of interest then in effect for determining interest
rates on Canadian Dollar-denominated commercial loans made by it in Canada, and
referred to by it as its ''prime rate'', and (ii) the sum of (A) the rate per
annum for Canadian Dollar bankers' acceptances having a term of 30 days that
appears on the display page designated as the CDOR Page (or any replacement
page) by Reuters Money Market Service (or its successor) as of 10:00 a.m.
(Toronto, Ontario time) on the date of determination as reported by the
Administrative Agent or, in the event such display page is unavailable or does
not display a rate for the applicable term, the average of the rates for such
term quoted by the Schedule I 

- 8 -

Reference Lenders as of 10:00 a.m. (Toronto, Ontario time) for value as at such
time and (B) 1% per annum.

''Canadian Prime Rate Loan'' means a Loan bearing
interest at a rate determined by reference to the Canadian Prime Rate.

''Canadian Resident'' means, at any time, a Person who at
that time is (a) not a non-resident of Canada for purposes of the Income Tax
Act (Canada); (b) an authorized foreign bank deemed to be resident in Canada
for purposes of the Income Tax Act (Canada) in respect of all amounts
payable pursuant to this Agreement; (c) a Canadian partnership, as that term is
defined in the Income Tax Act (Canada) or (d) any other Person who is not
liable for withholding tax pursuant to Part XIII of the Income Tax Act
(Canada) in respect of all amounts payable to such Person pursuant to the
Canadian Revolving Facility.

''Canadian Revolving Commitment'' means, for each Canadian
Revolving Lender, the amount identified as its Canadian Revolving Commitment
(including its Canadian Swingline Facility Commitment in respect of such
Facility, if any), on Schedule 1.1 or on the execution pages of the
Original Credit Agreement, or both, or in an Assignment Agreement executed and
delivered by such Lender, as such amount shall be reduced as a result of any
assignment made by such Canadian Revolving Lender in accordance with the
provisions of Section 11.3(b) or as a result of any permanent reduction in the
amount thereof pursuant to Sections 2.7, 2.8, 3.6, 3.7 and 3.8.

''Canadian Revolving Committed Amount'' means, at any time,
the aggregate amount of the Canadian Revolving Commitments at such time; 
provided that the aggregate amount of the Canadian Revolving Committed
Amount shall not exceed Cdn$200.0 million (or the US$ Equivalent Amount or Euro
Equivalent Amount thereof) or such lesser amount to which such sum shall then
have been permanently reduced pursuant to Sections 2.7, 2.8, 3.6, 3.7 and 3.8.

''Canadian Revolving Facility'' means, at any time, that
certain revolving loan facility in the principal amount equal to the Canadian
Revolving Committed Amount from time to time established by the Canadian
Revolving Lenders in favor of the Canadian Borrower pursuant to Section 2.1(b).

''Canadian Revolving Lenders'' means, collectively, each
Person identified as a ''Canadian Revolving Lender'' on Schedule 1.1 or on
the execution pages of the Original Credit Agreement, or both (provided 
that such Person shall have delivered to the Canadian Borrower and the
Administrative Agent such certificates, forms, documents or other evidence as
may be applicable and determined by the Canadian Borrower, acting reasonably, to
be reasonably satisfactory to establish that such Person is a Canadian Resident
on the Effective Date (it being acknowledged that a representation by such
Person that it is a Canadian Resident shall be deemed to be reasonably
satisfactory evidence thereof if such representation is accompanied by an
explanation of the basis for such status)), each acting through its lending
office set forth in Schedule 1.1 or such other lending office as
such Person may specify in accordance with Section 11.1, and any Person who
becomes a Canadian Revolving Lender by way of assignment in accordance with
Section 11.3(b), together with such Person's successors and permitted assigns
(each, individually, a ''Canadian Revolving Lender'').

''Canadian Revolving Outstanding Amount'' has the meaning
set forth in Section 2.4(e)(i).

''Canadian Revolving Unused Commitment'' means, at any time,
the amount by which (i) the then Canadian Revolving Committed Amount exceeds
(ii) the then Canadian Revolving Outstanding Amount.

- 9 -

                               
''Canadian Security Agreement'' means a general security
agreement substantially in the form of Exhibit D-1 or such other form of
general security or other instrument charging personal property as Lead
Arrangers' Counsel may approve.

''Canadian Security Documents'' has the meaning set forth in
Section 4.2(n)(i) of the Original Credit Agreement, and shall also include the
documents identified in Section 4.3A(h).

''Canadian Swingline Facility'' means, in respect of the
Canadian Revolving Facility, a separate short term revolving line of credit not
greater than the Canadian Swingline Maximum Amount (or the Equivalent Amount in
U.S. Dollars or Euros) provided to the Canadian Borrower by the Canadian
Swingline Facility Lender, which shall form part of such Lender's Canadian
Revolving Commitment.

''Canadian Swingline Facility Commitment'' means the amount
identified as the Canadian Swingline Facility Commitment of the Canadian
Swingline Facility Lender in Schedule 1.1 or the execution pages of the
Original Credit Agreement, or both.

''Canadian Swingline Facility Lender'' means Bank of
Montreal (or any successor thereto), as maker of revolving Loans under the
Canadian Swingline Facility.

''Canadian Swingline Maximum Amount'' means, at any time,
the amount in Canadian Dollars specified on the execution page of the Original
Credit Agreement for the Swingline Facility Lender or on Schedule 1.1 or
both.

''Canadian Transaction Coordinator'' means Royal Bank of
Canada (or any successor thereto) or such other agent as the Administrative
Agent may appoint in its place in such capacity in accordance with the terms of
this Agreement.

''Capital Expenditures'' means, without duplication, for any
period, additions to property, plant and equipment and other capital
expenditures of the Consolidated Companies that are (or should be) set forth in
a consolidated statement of cash flows for the Consolidated Companies for such
period prepared in accordance with GAAP, but excluding 

(i)

normal replacement and maintenance programs properly charged to
current operations, 

(ii)

the purchase price of equipment to the extent that the
consideration therefor consists of used or surplus equipment being traded in at
such time or the proceeds of a concurrent sale of such used or surplus
equipment,

(iii)

any Transition Costs constituting capital expenditures in
accordance with GAAP,

(iv)

any expenditures made to restore, replace or rebuild property to
the condition of such property immediately prior to any Casualty Event to the
extent the expenditure is made with Net Available Proceeds in accordance with
Section 3.8(b), and

(v)

any expenditures made with the Net Available Proceeds of any
Disposition in accordance with Section 3.8(a) in an amount not to exceed
Cdn$25.0 million in any fiscal year.

''Capital Lease'' means any Lease of any property (whether
real, personal, immovable, movable or mixed) which, in accordance with GAAP,
would be accounted for by the lessee as a capital lease.

- 10 -

                               
''Cash Equivalents'' means, for any Person:

(a)

direct obligations of the United States of America or Canada, or
of any agency thereof, or obligations guaranteed as to principal and interest by
the United States of America or Canada, or by any agency thereof, in either case
maturing not more than one year from the date of acquisition thereof by such
Person;

(b)

time deposits, certificates of deposit or bankers' acceptances
(including eurodollar deposits) issued by any bank or trust company organized
under the laws of the United States of America or any state thereof or the
District of Columbia or under the laws of Canada or any U.S. or Canadian branch
of a foreign bank having capital, surplus and undivided profits of at least
US$500.0 million or the Canadian Dollar Equivalent Amount and a deposit rating
of not less than investment grade by any rating agency rating such financial
institution;

(c)

commercial paper rated A-1 or better by S&P or P-1 or better by
Moody's, respectively, or R1 or better by Dominion Bond Rating Service Limited,
respectively, in each case maturing not more than one year from the date of
acquisition thereof by such Person;

(d)

repurchase obligations with a term of not more than 30 days for
underlying securities of the types described in clause (a) entered into with a
bank meeting the qualifications described in clause (b);

(e)

securities with maturities of one year or less from the date of
acquisition issued or fully guaranteed by any state, commonwealth or territory
of the United States of America, by any province of Canada or by any political
subdivision or taxing authority of the foregoing, and, in each case, rated A or
better by S&P or A or better by Moody's;

(f)

instruments equivalent to those referred to in clauses (a)
through (e) above denominated in euros or any other foreign currency comparable
in credit quality and tenor to those referred to above and customarily used by
corporations for cash management purposes in any jurisdiction outside the United
States and Canada to the extent reasonably required in connection with any
business conducted by any subsidiary organized in such jurisdiction; and

(g)

money market mutual funds that invest all or substantially all
their assets in the foregoing items.

''Casualty Event'' means, with respect to any Property of
any Person, any loss of title with respect to Real Property or any loss of or
damage to, or any condemnation, expropriation or other taking (including by any
Governmental Authority) of, such Property for which such Person or any of its
Subsidiaries receives or may be entitled to receive insurance proceeds or
proceeds of a condemnation or expropriation award or other compensation; 
provided, however, no such event shall constitute a Casualty Event if
(x) such proceeds or other compensation in respect thereof is less than Cdn$2.5
million and (y) all such proceeds and other compensation in respect of all such
events since the Effective Date is less than Cdn$10.0 million.  ''Casualty Event''
shall include but not be limited to any taking of all or any part of any Real
Property of any Company, in or by condemnation or expropriation or other eminent
domain proceedings pursuant to any Requirement of Law, or by reason of the
temporary requisition of the use or occupancy of all or any part of any Real
Property of any Company by any Governmental Authority, civil or military.

''Casualty Event Offer'' has the meaning set forth in
Section 3.8(b).

- 11 -

                               
''Casualty Proceeds'' means, subject to Sections 3.8(b)(i)
and 3.8(b)(ii), the aggregate amount of Net Available Proceeds received by the
Canadian Borrower or any of its Subsidiaries from all Casualty Events.
 Following any Casualty Event Offer, the amount of Casualty Proceeds shall be
reset at zero.

''Catch-up Date'' has the meaning set forth in
Section 3.7(d).

''Change of Control'' shall be considered to have occurred
if

(i)

at any time prior to a Qualified Public Offering:  the Permitted
Holders shall cease to own, directly or indirectly, in the aggregate, issued and
outstanding Equity Interests of Holdco having at least a majority of the
ordinary voting power of the then outstanding Equity Interests of Holdco; or

(ii)

at any time on or after a Qualified Public Offering:  (a) any
Person (other than the Permitted Holders), whether singly or in concert with one
or more Persons, shall, directly or indirectly, have acquired or acquire the
power (x) to vote or direct the voting of 30% or more, on a fully diluted basis,
of the outstanding ordinary voting power of the outstanding Equity Interests of
Holdco, and the Permitted Holders shall at such time own less than such Person
or Persons, on a fully diluted basis, of the outstanding ordinary voting power
of the outstanding Equity Interests of Holdco, or (y) to elect or designate for
election a majority of the board of directors of Holdco by voting power,
contract or otherwise or (b) the board of directors of Holdco shall cease to
consist of at least a majority of Continuing Directors.

''Class'' means the Lenders under the Canadian Revolving
Facility, the U.S. Revolving Facility, the New Term Facility, the Canadian Swingline Facility or the U.S. Swingline Facility, as the context requires.

''Closing Date'' means December 18, 2003.

''Code'' means the U.S. Internal Revenue Code of 1986 and
the rules and regulations promulgated thereunder, as amended or replaced from
time to time.

''Collateral'' means all of the Pledged Collateral (as
defined in the Security Agreements), the Mortgaged Property, the Trust Property
and the Secured Property (each as defined in the applicable Mortgage) and any
other property, whether now owned or hereafter acquired, upon which a Lien
securing the Obligations is granted or purported to be granted under any
Security Document.

''Collateral Account'' has the meaning set forth in
the Canadian Security Agreement.

''Commission'' means the United States Securities and
Exchange Commission.

''Commitment'' means, for each Lender, the amount identified
as its Commitment with respect to each of the Canadian Revolving Facility, the
U.S. Revolving Facility, the New Term Facility or any Incremental Term Facility,
as the case may be, on Schedule 1.1 or the execution pages hereof, of the
Original Credit Agreement or of any Incremental Amendment, or any of them, as
such amount may be modified as a result of any assignment made in accordance
with Section 11.3(b) or permanently reduced in accordance with Sections 2.7,
2.8, 3.6, 3.7 and 3.8, and together comprising the Aggregate Committed Amount.

''Commitment Fees'' means the fees payable to the Lenders
pursuant to Section 3.9(a).

- 12 -

                               
''Commitment Percentage'' means, in respect of any Lender
and any Facility, the percentage determined by dividing that Lender's Commitment
(excluding its Canadian Swingline Facility Commitment or U.S. Swingline Facility
Commitment, if any) in respect of that Facility by the aggregate Committed
Amount (excluding the Canadian Swingline Facility Commitment and the U.S.
Swingline Facility Commitment, if any) in respect of that Facility.

''Committed Amount'' means, in respect of any Facility, the
aggregate amounts of the Relevant Lenders' Commitments in respect of such
Facility.

''Companies'' means Holdco and its Subsidiaries; and ''Company''
means any one of them.

''Consolidated Assets'' means, at any particular time with
respect to any Person, the aggregate assets of such Person and its Subsidiaries
at such time, determined on a consolidated basis in accordance with GAAP.

''Consolidated Companies'' means the Canadian Borrower and
its Consolidated Subsidiaries.

''Consolidated EBITDA'' means, for any period, the sum
(without duplication) of the amounts for such period of Adjusted Net Income, 
plus 

(a)

in each case to the extent deducted in calculating such Adjusted
Net Income (except for clause (viii) below which is not reflected in Adjusted
Net Income), (i) income tax expense, (ii) Consolidated Interest Expense,
(iii) depreciation and amortization expense, (iv) nonrecurring costs and
expenses not to exceed Cdn$10.0 million incurred in connection with the
Transactions within 365 days thereof, (v) non-cash write-offs and impairment
charges related to goodwill, intangibles and long-lived assets, (vi) write-offs
of the step-up of inventory to fair market value in accordance with purchase
accounting, (vii) non-cash compensation charges, (viii) the benefit (or, to the
extent not already deducted in computing Adjusted Net Income, the loss) of fair
market value amounts ascribed to foreign currency hedging contracts in purchase
accounting (or the deferred gain related to foreign currency hedging contracts
terminated on or prior to the Effective Date) in the period in which the
underlying contract is scheduled to be closed out, (ix) Transition Costs,
(x) fees and expenses payable pursuant to the Investor Agreements, and
(xi) other non-cash items of expense, other than to the extent requiring an
accrual or reserve for future cash expenses all as determined on a consolidated
basis for the Consolidated Companies, minus 

(b)

(i) changes in estimates to reserves established in purchase
accounting prior to the Transactions, and (ii) to the extent included in
determining such Consolidated Net Income, all non-cash items of income for such
period, other than changes in revenue estimates in the ordinary course of
business and reduction in reserves that were not added back pursuant to clause (a)(xi)
above, all determined on a consolidated basis in accordance with GAAP.  

Solely for purposes of calculating the Total Leverage Ratio and
the Interest Coverage Ratio, Consolidated EBITDA shall be calculated on a Pro
Forma Basis to give effect to the BRP Acquisition and any other Acquisition, any
Disposition of a Subsidiary, or any Disposition or discontinuation of a line of
business consummated during the fiscal period of the Canadian Borrower ended on
the applicable Test Date as if each such Acquisition had been effected on the
first day of such period and as if each such Disposition or discontinuation had
been consummated on the day prior to the first day of such period.  

- 13 -

Notwithstanding anything to the contrary in this Agreement, for
the Quarters ended July 31, 2003 and October 31, 2003, Consolidated EBITDA shall
be deemed to be Cdn$5.3 million and Cdn$82.4 million, respectively.

''Consolidated Interest Expense'' means, for any period,
(x) all interest expense of the Consolidated Companies for such period as
determined on a consolidated basis for the Consolidated Companies in accordance
with GAAP, whether paid in kind, or amortization of discounts and deferred
financing fees (it being understood that any fees or other charges in the nature
of interest or discount accrued in connection with any Permitted Receivables
Facility shall not be included as interest expense), minus (y) interest
income of the Consolidated Companies for such period.  For purposes of the
foregoing, interest expense is determined after giving effect to any net
payments made or received by a Consolidated Company with respect to interest
rate Hedging Agreements.  Solely for purposes of calculating clause (y) of the
Interest Coverage Ratio for the period of four Quarters ending on April 30,
2004, July 31, 2004 and October 31, 2004, Consolidated Interest Expense shall be
deemed to be (a) the Consolidated Interest Expense for the Quarter ending April
30, 2004, multiplied by four, (b) the Consolidated Interest Expense for the two
Quarters ending July 31, 2004, multiplied by 2, and (c) the Consolidated
Interest Expense for the three Quarters ending October 31, 2004, multiplied by
4/3, respectively.  Solely for purposes of calculating the Interest Coverage
Ratio, Consolidated Interest Expense shall be calculated on a Pro Forma Basis to
give effect to the BRP Acquisition and any other Acquisition, any Disposition of
a Subsidiary, or any Disposition or discontinuation of a line of business
consummated during the fiscal period of the Canadian Borrower ended on the Test
Date as if each such Acquisition had been effected on the first day of such
period and as if each such Disposition or discontinuation had been consummated
on the day prior to the first day of such period.

''Consolidated Net Income'' means, for any period, the
consolidated net income (or loss) of the Consolidated Companies for such period,
determined in conformity with GAAP, but excluding the income of any Person
(other than the Subsidiaries) in which any Company has an ownership interest,
until such income has been received by a Company in a cash distribution and in
any event not greater than the Canadian Borrower's proportionate interest in the
net income of such Person for the relevant period.

''Consolidated Revenues'' means, for any period with respect
to any Person, the total revenues of such Person and its Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP, except that
for the fiscal years ending January 31, 2004 and January 31, 2005, revenues
shall be increased by the fair market value amounts ascribed to foreign currency
hedging contracts in purchase accounting in the period in which the underlying
contract is closed out.

''Consolidated Subsidiary'' means, for any Person, each
Subsidiary of such Person (whether now existing or hereafter created or
acquired) the financial statements of which shall be (or should have been)
consolidated with the financial statements of such Person in accordance with GAAP.

''Contingent Obligation'' means, as to any Person, any
obligations or direct or indirect liability of such Person, whether or not
contingent, with or without recourse,

(a)

to guarantee or indemnify any other Person in respect of any
Indebtedness, lease, dividend, letter of credit or other obligation (the ''primary
obligations'') of another Person (the ''primary obligor''), including
any obligation of such Person (i) to purchase, repurchase or otherwise acquire
such primary obligations or any security therefor, (ii) to advance or provide
funds or other support for the payment or discharge of any such primary
obligation, or to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency or any balance sheet
item, level of income or financial condition of the primary obligor, (iii) to
lease or purchase property, securities or services primarily for the purpose of
assuring the owner of any such primary obligation of the ability of the primary
obligor to make payment of 

- 14 -

  such primary obligation, or
  (iv) otherwise to assure or hold harmless the holder of any such primary
  obligation against loss in respect thereof (each of clauses (i) through
  (iv), a ''Guarantee Obligation'');

(b)

with respect to any Surety Instrument (other than any Letter of
Credit) issued for the account of such Person or as to which such Person is
otherwise liable for reimbursement of drawings or payments;

(c)

to purchase any materials, supplies or other property from, or to
obtain the services of, another Person if the relevant contract or other related
document or obligation requires that payment for such materials, supplies or
other property, or for such services, shall be made regardless of whether
delivery of such materials, supplies or other property is ever made or tendered,
or such services are ever performed or tendered; or 

(d)

in respect of any Hedging Agreement;

provided, however, that the
term Contingent Obligation shall not include endorsements of instruments for
deposit or collection or standard contractual indemnities entered into, in each
case, in the ordinary course of business.  The amount of any Contingent
Obligation shall (x) in the case of any Guarantee Obligation, be deemed equal to
the stated or determinable amount of the primary obligation in respect of which
such Guarantee Obligation is made or, if not stated or if indeterminable, the
maximum reasonably anticipated liability in respect thereof, and (y) in the case
of other Contingent Obligations, be equal to the maximum reasonably anticipated
liability in respect thereof; provided, however, that in the case
of any repurchase or similar obligations under any Permitted Floorplan Facility
or Permitted Receivables Facility, the amount of such Contingent Obligations
shall be limited to the maximum stated or determinable amount of such
obligations under such facility, it being understood that if such maximum amount
applies on an annual basis, only the amount calculated for the then current year
shall be included in the calculation of the amount of Contingent Obligations.

''Continuing Directors'' means the directors of Holdco on
the Effective Date, after giving effect to the BRP Acquisition and the other
Transactions, and each other director, if, in each case, such other director's
nomination for election to the board of directors of Holdco is recommended by at
least a majority of the then Continuing Directors or by a nominations committee
thereof or designated or appointed by a Sponsor.

''Co-Syndication Agents'' means each of Merrill Lynch, UBS
Securities LLC and Royal Bank of Canada (or any successor thereto) in such
capacity or any successor co-syndication agent appointed pursuant to
Section 10.10.

''Credit Documents'' means this Agreement, the Notes, the
Security Documents, any L/C Documents, the Escrow Agreement, any evidence of
obligations under any Swingline Facility, any Hedging Agreements and, solely for
purposes of Section 8.1(i), the Agent Fee Letter.

''Credit Exposure'' means:

(a)

as to any Canadian Revolving Lender, (i) at any time prior to the
termination of the Canadian Revolving Facility, the Canadian Revolving
Commitment of such Canadian Revolving Lender and (ii) at any time after the
termination of the Canadian Revolving Facility, the aggregate principal amount
of the Extensions of Credit then outstanding and owed to such Canadian Revolving
Lender under the Canadian Revolving Facility, including in each case, where
applicable, the Canadian Swingline Facility;

- 15 -

                (b)

as to any U.S. Revolving Lender, (i) at any time prior to the
termination of the U.S. Revolving Facility, the U.S. Revolving Commitment of
such U.S. Revolving Lender and (ii) at any time after the termination of the
U.S. Revolving Facility, the aggregate principal amount of the Extensions of
Credit then outstanding and owed to such U.S. Revolving Lender under the U.S.
Revolving Facility, including in each case, where applicable, the U.S. Swingline
Facility; and

(c)

as to any New Term Lender, (i) at any time prior to the
termination of the New Term Facility, the New Term Commitment of such New Term
Lender and (ii) at any time after the termination of the New Term Facility, the
aggregate principal amount of the Loans then outstanding and owed to such New
Term Lender under the New Term Facility.

''Creditors'' means each Agent and each Lender.

''Cumulative Adjusted Net Income'' means, on any date of
determination, Adjusted Net Income for the period (taken as one accounting
period) commencing on February 1, 2005 and ending on the last date of the most
recently ended Quarter for which financial statements have been delivered in
accordance with Section 6.1, but excluding in any event interest expense accrued
on Permitted Holdco Debt for any period in which such Indebtedness was not
Pushdown Holdco Debt.

''Cumulative Growth Amount'' means, on any date of
determination, the sum of, without duplication, 

(A) the sum (which shall not be less than zero) of US$25,000,000
plus 50% of Cumulative Adjusted Net Income (or, if Cumulative Adjusted Net
Income at the time of determination is a deficit, minus 100% of such deficit),
plus 

(B) the amount of Net Available Proceeds actually received by the
Canadian Borrower from Equity Issuances by Holdco made after February 1, 2005
(to the extent that such amount was not required to be applied to prepay Loans
pursuant to Section 3.7(c)) plus 

(C) the amount of Net Available Proceeds actually received by the
Canadian Borrower from the issuance after February 1, 2005 of Permitted Holdco
Debt, plus 

(D) an amount equal to any repayments, interest, returns,
profits, distributions, income and similar amounts actually received by the
Canadian Borrower in cash on or prior to the date of determination in respect of
any Investment described under clause (p) of the definition of ''Permitted
Investments'' made since February 1, 2005 pursuant to Section 7.6, minus

(E) the sum at the date of determination of (1) the aggregate
amount of Investments described under clause (p) of the definition of ''Permitted
Investments'' made since February 1, 2005 pursuant to Section 7.6, plus (2) the
aggregate amount of Dividend Payments made since February 1, 2005 pursuant to
Section 7.7(f), and (3) the aggregate amount of payments, prepayments,
redemptions or repurchases made since February 1, 2005 pursuant to
Section 7.14(a)(3)(i).

''Debt Issuance'' means the incurrence by any Company of any
Indebtedness after the Effective Date.

''Default'' means any event, act, condition or circumstance
the occurrence or existence of which, with notice or lapse of time or both,
would constitute an Event of Default.

- 16 -

                               
''Defaulting Lender'' means, at any time, any Lender that (i) has
failed to make an Extension of Credit required pursuant to the terms of this
Agreement, (ii) has failed to pay to the Administrative Agent an amount to be
advanced by such Lender pursuant to the terms of this Agreement or (iii) has
been deemed insolvent or has become subject to a bankruptcy or insolvency
proceeding, or in respect of which or whose assets a receiver, liquidator,
curator, trustee, administrator or similar official has been appointed.

''Deferred Acquisition Obligations'' means, with respect to
any Acquisition, all Acquisition Consideration deferred for payment at any
future time, whether or not any such future payment is subject to the occurrence
of any contingency, and including any and all payments and liabilities
representing the purchase price and any assumptions of liabilities, ''earn-outs''
and other Profit Payment Agreements, consulting agreements, service agreements
and non-competition agreements and other liabilities of every type and
description.  The amount of any Deferred Acquisition Obligation shall be deemed
to be the reasonably anticipated liability in respect thereof as determined by
the Canadian Borrower in good faith on the date of the applicable Acquisition.

''Delivery Date'' has the meaning set forth in the
definition of ''Applicable Margin.''

''Disposition'' means (i) any conveyance, sale, lease,
assignment, transfer or other disposition (including by way of merger or
consolidation but excluding any Sale and Leaseback Transaction permitted by
Section 7.5) of any Property (including accounts receivable or chattel paper and
related assets of any Company and Equity Interests of Persons owned by any
Company) (whether owned on the Effective Date or thereafter acquired) by any
Company to any Person (other than (A) with respect to any Obligor, to any
Obligors and (B) with respect to any other Company, to any Company and
(C) dispositions of Cash Equivalents), and (ii) any liquidating dividend or
liquidating distribution received by any Company in respect of any Investment in
any Person that is not a Subsidiary excluding, however, in each case any
Excluded Disposition (except for purposes of defining the term ''Excluded
Disposition'').

''Disposition Event'' means the receipt by any Company of
cash or Cash Equivalent proceeds or cash or Cash Equivalent distributions of any
kind in consideration for a Disposition.

''Disposition Event Offer'' has the meaning set forth in
Section 3.8(a).

''Disposition Proceeds'' means, subject to Sections
3.8(a)(i) and 3.8(a)(ii), the aggregate amount of Net Available Proceeds
received by the Canadian Borrower or any of its Subsidiaries from all
Disposition Events.  Following any Disposition Event Offer, the amount of
Disposition Proceeds shall be reset at zero.

''Disqualified Capital Stock'' means, with respect to any
Person, any Equity Interest of such Person that, by its terms (or by the terms
of any security into which it is convertible or for which it is exchangeable),
or upon the happening of any event, matures (excluding any maturity as the
result of an optional redemption by the issuer thereof) or is mandatorily
redeemable (other than solely for Qualified Capital Stock), pursuant to a
sinking fund obligation or otherwise, or is redeemable at the sole option of the
holder thereof (other than solely for Qualified Capital Stock) or exchangeable
or convertible into debt securities of the issuer thereof at the sole option of
the holder thereof, in whole or in part, on or prior to the date which is
90 days after the Term Loan Maturity Date.  Notwithstanding the preceding
sentence, any Equity Interest that would constitute Disqualified Capital Stock
solely because the holders thereof have the right to require such Person to
repurchase or redeem such Equity Interest upon the occurrence of a change of
control or an asset sale shall not constitute Disqualified Capital Stock if the
terms of such 

- 17 -

Equity Interest provide that such Person may only repurchase or redeem such
Equity Interest pursuant to such provisions if such repurchase or redemption
complies with Section 7.7.

''Dividend Payment'' means dividends (in cash, Property or
obligations) on, or other payments or distributions on account of, or the
setting apart of money for a sinking or other analogous fund for, or the
purchase, redemption, retirement or other acquisition of, any Equity Interests
or Equity Rights of any Company, but excluding dividends paid through the
issuance of additional shares of Qualified Capital Stock and any redemption or
exchange of any Qualified Capital Stock of such Company through the issuance of
Qualified Capital Stock of such Company.

''Effective Date'' has the meaning set forth in Section 4.1.

''Eligible Person'' means (i) a commercial bank organized
under the laws of the United States, or any state thereof, and having a combined
capital and surplus of at least US$100.0 million; (ii) a commercial bank
organized under the laws of any other country that is a member of the
Organization for Economic Cooperation and Development (the ''OECD''), or a
political subdivision of any such country, and having a combined capital and
surplus in an Equivalent Amount of at least US$100.0 million; provided,
that such bank is acting through a branch or agency located in the country in
which it is organized or another country that is also a member of the OECD;
(iii) an insurance company, mutual fund or other entity that is regularly
engaged in making, purchasing or investing in loans or securities; or any other
financial institution organized under the laws of the United States, any state
thereof, any other country that is a member of the OECD or a political
subdivision of any such country with assets, or assets under management, in an
Equivalent Amount of at least US$100.0 million; (iv) any Affiliate of a Lender;
(v) any other entity (other than a natural person) that is an ''accredited
investor'' (as defined in Regulation D under the U.S. Securities Act or in
Ontario Securities Commission Rule 45-501 ''Exempt Distributions'', as amended)
that extends credit or buys loans as one of its businesses or investing
activities including insurance companies, mutual funds and investment funds; and
(vi) any other entity consented to by each of the Global Transaction Coordinator
and the Canadian Borrower.  With respect to any Lender that is a fund or
commingled investment vehicle that invests in loans, any other fund or
commingled investment vehicle that invests in loans and is managed or advised by
the same investment advisor of such Lender or by an Affiliate of such investment
advisor shall be treated as a single Eligible Person.

''Environmental Claim'' means, with respect to any Person,
any written notice, claim, demand or other communication (collectively, a ''claim'')
by any other Person alleging such Person's liability for any costs, cleanup
costs, investigation, remediation, response or corrective action costs, damages
to natural resources or other Property, personal injuries, fines or penalties
arising out of or resulting from (i) the presence, Release or threatened Release
into the environment of any Hazardous Material at any location, whether or not
owned by such Person, or (ii) any violation of any Environmental Law.  The term
''Environmental Claim'' shall include any claim by any Person seeking damages,
contribution, indemnification, cost recovery, compensation or injunctive relief
resulting from the presence of Hazardous Materials or arising from alleged
injury or threat of injury to health, safety or the environment.

''Environmental Laws'' means any applicable current or
future Requirement of Law, including legally enforceable requirement of the
common law or of any Governmental Authority having jurisdiction to the extent
pertaining to (a) the protection of public or occupational health and safety,
and the indoor or outdoor environment, (b) the conservation, management or use
of natural resources and wildlife, (c) the protection or use of surface water
and groundwater, (d) the management, manufacture, possession, presence, use,
generation, transportation, treatment, storage, disposal, Release, threatened
Release, investigation, abatement, removal, remediation or handling of, or
exposure to, any Hazardous Material, (e) pollution (including any release to
land surface water and groundwater) or (f) the health 

- 18 -

or safety of any employees of any Person, together with, in each case, any
analogous implementing or successor law, and any amendment thereto and any rule,
regulation, order or directive issued thereunder.

''Equity Financing'' means the purchase for cash of the
common equity of Holdco in an aggregate amount of not less than Cdn$304.5
million by the Investors.

''Equity Interests'' means, with respect to any Person, any
and all shares, interests, participations or other equivalents, including
membership interests (however designated, whether voting or non-voting), of
capital of such Person, including, if such Person is a partnership, partnership
interests (whether general or limited) and any other interest or participation
that confers on a Person the right to receive a share of the profits and losses
of, or distributions of assets of, such partnership, whether outstanding on the
Effective Date or thereafter.

''Equity Issuance'' means any of (a) any issuance or sale
after the Effective Date by any Company of any Equity Interests (including any
Equity Interests issued upon exercise of any Equity Rights) or any Equity Rights
(other than any issuance by a Company that is not an Obligor to any other
Company, and any issuance by any Obligor to any other Obligor), whether pursuant
to a public offering or private placement to any Person, or (b) the receipt by
any Company after the Effective Date of any capital contribution (whether or not
evidenced by any Equity Interest issued by the recipient of such contribution),
in each case other than any Excluded Equity Issuance.  The issuance or sale of
any debt security convertible into or exchangeable or exercisable for any Equity
Interests shall be deemed a Debt Issuance and not an Equity Issuance for
purposes of Section 3.7(c).

''Equity Rights'' means, with respect to any Person,
any outstanding subscriptions, options, warrants, commitments, pre-emptive
rights or agreements of any kind (including any stockholders' or voting trust
agreements) for the issuance, sale, registration or voting of, or outstanding
securities convertible into, any additional shares of Equity Interests of any
class, or partnership or other ownership interests of any type in, such Person.

''Equivalent Amount'' means, on any date in one
currency (the ''first currency'') of any amount denominated
in another currency (the ''second currency''), the amount of the first
currency which could be purchased with such amount of the second currency at the
Bank of Canada noon spot rate on such date.

''ERISA'' means the U.S. Employee Retirement Income
Security Act of 1974, as amended, and any successor statute thereto, as
interpreted by the rules and regulations thereunder, all as the same may be in
effect from time to time.  References to sections of ERISA shall be construed
also to refer to any successor sections.

''ERISA Affiliate'' means an entity, whether or not
incorporated, which is under common control with Holdco or any Material
Subsidiary within the meaning of Section 4001(a)(14) of ERISA, or is a member of
a group which includes Holdco or any Material Subsidiary and which is treated as
a single employer under Section 414(b), (c), (m) or (o) of the Code.

''ERISA Entity'' means Holdco, any Material Subsidiary and
any ERISA Affiliate.

''ERISA Event'' means (a) with respect to a Pension Plan,
the occurrence of a Reportable Event or the substantial cessation of operations
(within the meaning of Section 4062(e) of ERISA); (b) the existence with respect
to any Pension Plan of an ''accumulated funding deficiency'' (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived, the
failure to make by its due date a required installment under Section 412(m) of
the Code with respect to any Pension Plan or the failure to 

- 19 -

make any required contribution to a Multiemployer Plan; (c) the filing pursuant
to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a
waiver of the minimum funding standard with respect to any Pension Plan; (d) the
incurrence by any ERISA Entity of any liability under Title IV of ERISA with
respect to the termination of any Pension Plan; (e) the receipt by any ERISA
Entity from the PBGC or a plan administrator of any notice relating to an
intention to terminate any Pension Plan or to appoint a trustee to administer
any Pension Plan, or the occurrence of any event or condition which could
reasonably be expected to constitute grounds under ERISA for the termination of
or the appointment of a trustee to administer any Pension Plan; (f) the
incurrence by any ERISA Entity of any liability with respect to the withdrawal
or partial withdrawal from any Pension Plan or Multiemployer Plan; (g) the
receipt by any ERISA Entity of any notice, or the receipt by any Multiemployer
Plan from any ERISA Entity of any notice, concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or could
reasonably be expected to be, insolvent or in reorganization, within the meaning
of Title IV of ERISA; (h) the making of any amendment to any Pension Plan which
could result in the imposition of a lien or the posting of a bond or other
security; or (i) the occurrence of a nonexempt prohibited transaction (within
the meaning of Section 4975 of the Code or Section 406 of ERISA) which could
result in liability to any Obligor or any of its Subsidiaries.

''Escrow Agent'' means Bank of Montreal in such capacity
under the Escrow Agreement. 

''Escrow Agreement'' means the escrow agreement
substantially in the form of Exhibit I dated as of the Closing Date
between Holdco, the Investors and the Escrow Agent.

''Euro'' or ''€'' means the lawful currency of
the participating member states of the European Union that adopt a single
currency in accordance with the treaty establishing the European Communities as
amended by the Treaty on European Union.

''EUROLIBOR'' means, for each Interest Period for any EUROLIBOR Loan, the aggregate of (a) the applicable EUROLIBOR Reserve
Percentage, if any, and (b) the rate per annum, expressed on the
basis of a 360-day year, rounded upwards, if necessary, to the nearest
one-hundredth of one percent, equal to the average of the offered quotations
appearing on Telerate Page 3750 (or if such Telerate Page shall not be
available, any successor or similar service as may be selected by the
Administrative Agent) as of 11:00 a.m. (London, England, time) (or as soon
thereafter as practicable), on the date two (2) Business Days prior to and for
value on the first day of such Interest Period for deposits in Euros having a
term comparable to such Interest Period and in an amount comparable to the
principal amount of the EUROLIBOR Loan to which such Interest Period relates.
 If neither such Telerate Page 3750 nor any successor or similar service is
available, then ''EUROLIBOR'' shall mean, with respect to any Interest Period for
any applicable EUROLIBOR Loan, the rate of interest per annum, expressed
on the basis of a 360-day year, rounded upwards, if necessary, to the nearest
basis point, determined by the Administrative Agent as of 11:00 a.m. (London,
England, time) (or as soon thereafter as practicable), on the date two (2)
Business Days before and for value on the first day of such Interest Period, to
be the arithmetic average of the prevailing rates per annum at the time
of determination and in accordance with the then existing practice in the
applicable market, for the offering to the Administrative Agent, by one or more
prime banks selected by such Agent in its reasonable discretion, in the London
interbank market, of deposits in Euros for delivery on the first day of such
Interest Period and having a term comparable to such Interest Period and in an
amount comparable to the EUROLIBOR Loan to which such Interest Period relates.
 Each determination by the Administrative Agent of EUROLIBOR shall be conclusive
and binding, absent manifest error, and may be computed using any reasonable
averaging and attribution method.

''EUROLIBOR Loan'' means a Loan bearing interest at a rate
determined by reference to EUROLIBOR.

- 20 -

                               
''Event of Default'' has the meaning set forth in
Article 8.

''Exchange Indenture'' means an indenture pursuant to which
Exchange Notes are issued.

''Exchange Notes'' means the notes exchanged for Senior
Subordinated Notes pursuant to the Exchange Offer.

''Exchange Offer'' means the offer pursuant to which the
Senior Subordinated Notes are exchanged for Exchange Notes pursuant to the
Exchange Indenture.

''Excluded Dispositions'' means (i) Dispositions for fair
market value resulting in no more than Cdn$2.5 million in aggregate proceeds per
Disposition (or series of related Dispositions) and no more than Cdn$7.5 million
in aggregate proceeds in any fiscal year; (ii) an exchange of equipment or
inventory for other equipment or inventory; provided that the Company
effecting such exchange receives at least substantially equivalent value in such
exchange for the Property disposed of; (iii) the attachment or granting of any
Permitted Lien, the making of any Investment permitted by Section 7.6 and the
making of any Dividend Payment permitted by Section 7.7; (iv) the sale of
inventory in the ordinary course of business consistent with past practices; (v)
the sale or transfer of accounts receivable or chattel paper and related assets
in connection with any Permitted Receivables Facility and any assets directly
related thereto, including all collateral securing such accounts receivable,
chattel paper and other assets (including contract rights and all guarantees or
other obligations in respect of such accounts receivable or chattel paper,
proceeds of such accounts receivable or chattel paper and other assets which are
customarily transferred or in respect of which security interests are
customarily granted in connection with asset securitization transactions
involving accounts receivable or chattel paper); (vi) the non-exclusive license
or sublicense of rights to use patents, trade secrets, know-how and other
intellectual property of any Company to the extent such license or sublicense
does not interfere with the business of any Company; (vii) like-kind exchanges
subject to the provisions of Section 7.4(b)(iv)) and (viii) the liquidation of
Cash Equivalents.

''Excluded Equity Issuance'' means (i) any issuance of
Equity Interests of Holdco to the seller or sellers in consideration for a
Permitted Acquisition or pursuant to the BRP Acquisition Agreement; (ii) any
issuance of Equity Interests by Holdco to the Investors, the proceeds of which
are contributed as common equity to the Canadian Borrower; (iii) any issuance by
Holdco or any of its Subsidiaries of Equity Interests of Holdco or such
Subsidiary to employees, directors, officers or consultants pursuant to an
employment agreement or a benefit or compensation plan; (iv) any issuance of
Qualified Capital Stock of Holdco or any of its Subsidiaries to the extent that
the proceeds thereof are used for a substantially contemporaneous purchase or
redemption of Equity Interests of Holdco or such Subsidiary pursuant to
Section 7.7(b); (v) sales or issuances of Equity Interests of Holdco to members
of management, employees or consultants of any Company pursuant to an offering
completed prior to the date that is three months after the Closing Date; and
(vi) any issuance of Equity Interests by Holdco or any of its Subsidiaries to
directors or nominees if resulting in de minimis proceeds.

''Excluded Mortgaged Real Property'' has the meaning set
forth in Section 4.3A(g)(i).

''Excluded Taxes'' means (a) with respect to the
Administrative Agent, any Lender or any Transferee in connection with the U.S.
Revolving Facility, (i) income or franchise taxes imposed on (or measured by)
its net income by any jurisdiction under the laws of which the Administrative
Agent, such Lender or such Transferee is organized or in which its principal
office is located or, in the case of any Lender, in which its applicable lending
office is located and (ii) any tax similar to the branch profits tax under
Section 884 of the Code that is imposed by any jurisdiction described in
clause (a)(i) above, (b) with respect to the Administrative Agent, any Lender,
the Issuing Lender or any Transferee in connection 

- 21 -

with the Canadian Revolving Facility or the New Term Facility, (i) income or
franchise taxes imposed on (or measured by) its net income by any jurisdiction
under the laws of which the Administrative Agent, such Lender or such Transferee
is organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located and (ii) any tax
similar to the branch profits taxes currently imposed by Canada (or any
province) or that is imposed by any jurisdiction described in clause (b)(i)
above, (c) any Other Taxes and (d)  with respect to the Administrative Agent,
any Lender or any Transferee, increases (solely as a result of a Legal or
Regulatory Change that increases the rate but not as a result of a Legal or
Regulatory Change that changes the basis by which (or the base on which) capital
Tax is applied or calculated) in capital Taxes imposed on (or measured by)
taxable capital imposed by Canada or any province thereof.

''Extension Date'' means, in relation to any
Extension of Credit (except a Loan under any Swingline Facility), the date,
which shall be a Business Day, on which such Extension of Credit is made
available to a Borrower pursuant to a Notice of Borrowing and, in relation to
any Loan under any Swingline Facility, the date, which shall be a Business Day,
on which the applicable Floating Rate Loan is made available to the Relevant
Borrower.

''Extension of Credit'' means the making of any Loan by the
Relevant Lenders (other than a participation therein by a Lender) or the
issuance of any Letter of Credit by the Issuing Lender.

''Face Amount'' means, in respect of a Bankers'
Acceptance or Acceptance Note, the amount payable to the holder thereof on the
maturity thereof.

''Facility'' means, as the context requires, the Canadian
Revolving Facility, the U.S. Revolving Facility, the New Term Facility or any
Incremental Term Facility, and ''Facilities'' means any two or more
of them, as the context may require.

''Family Holding Companies'' means, collectively, Beaudier
Inc., Jadier International Inc., Gestion J.I.C.A. Inc. and Fonds Achbee Inc., in
each case for so long as such corporation continues to be used as a holding
corporation for one or more of the members of the Beaudier Group and such
members continue to beneficially hold, directly or indirectly, not less than 85%
of the ownership interests in such corporation.

''Federal Funds Rate'' means, for any day, the rate per
annum, expressed on the basis of a 360-day year (rounded upward, if
necessary, to the nearest one-sixteenth of one percent), equal to the weighted
average of the rates on overnight federal funds transactions with members of the
U.S. 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 (i) 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 and (ii) if no such rate is so published on such
next preceding Business Day, the Federal Funds Rate for such day shall be the
average rate quoted to the Administrative Agent on such day on such
transactions, as determined by the Administrative Agent.

''Fixed Rate Loans'' means, collectively, LIBOR Loans, EUROLIBOR
Loans and Bankers' Acceptance Loans and ''Fixed Rate Loan'' means
any one of them.

''Floating Rate Loans'' means, collectively Canadian Prime
Rate Loans, U.S. Base Rate Loans and U.S. Prime Rate Loans and ''Floating Rate
Loan'' means any one of them.

''Floor Planning Facility'' has the meaning set forth in
Section 4.2(j).

- 22 -

                               
''Forecast Exposure'' has the meaning set forth in Section
6.12.

''Foreign Obligor'' means any Obligor that is not a Canadian
Obligor or a U.S. Obligor.

''Foreign Plan'' means any employee benefit plan, program,
policy, arrangement or agreement maintained or contributed to by Holdco or any
of its Subsidiaries with respect to employees employed outside the United States
or Canada.

''Funded Debt'' means Indebtedness in respect of any
outstanding Pushdown Holdco Debt, the Senior Subordinated Notes, Additional
Subordinated Debt, Incremental Term Loans and Loans under the New Term Facility.

''GAAP'' means generally accepted accounting principles in
Canada, as set out in the Handbook of the Canadian Institute of Chartered
Accountants, as the same may be amended, supplemented or restated from time to
time, applied on a consistent basis, subject to Section 1.3.

''Global Transaction Coordinator'' means Merrill Lynch (or
any successor thereto).

''Government Acts'' has the meaning set forth in
Section 2.11(i).

''Governmental Authority'' means any federal,
provincial, state, regional, municipal or foreign (including the European Union)
court, government or governmental agency, board, tribunal, authority,
instrumentality or regulatory body and includes the Bank Committee on Banking
Regulation and Supervisory Practices of the Bank for International Settlement
and Her Majesty the Queen in right of Canada or any Province.

''Guaranteed Obligations'' has the meaning set forth in
Section 9.1.

''Guarantees'' means, collectively, the guarantee granted by Holdco, the Canadian Borrower and each other Guarantor in Article 9 or, where
applicable, substantially in the form of Exhibit E (with appropriate
changes as may be required by local law) or such other form as Lead Arrangers'
Counsel may approve, and ''Guarantee'' means any one of the foregoing, as
the context may require.

''Guarantors'' means, collectively, (i) Holdco, (ii) with
respect to the U.S. Revolving Facility, the Canadian Borrower, (iii) each
Material Subsidiary (other than any Receivables Co.) of the Canadian Borrower
and (iv) each Wholly Owned Subsidiary of the Canadian Borrower so long as, in
the case of clause (iii) or (iv), such Subsidiary (a) is designated as a
Guarantor in Schedule 5.13, or (b) is required to execute and
deliver a Guarantee pursuant to Section 6.10(a) or (b), and ''Guarantor'' means any
one of them, as the context may require.

''Hazardous Materials'' means any substance, material,
contaminant, pollutant or waste defined as a hazardous material or otherwise
regulated in or under or which could give rise to liability under any
Environmental Laws.

''Hedging Agreement'' means any agreement (including any
master agreement and any schedule or agreement, whether or not in writing,
relating to any single transaction) that is an interest rate swap agreement,
basis swap, forward rate agreement, commodity swap, commodity option, equity or
equity index swap or option, bond option, interest rate option, foreign exchange
agreement, rate cap, collar or floor agreement, currency swap agreement,
cross-currency rate swap agreement, swaption, currency option or any other
similar agreement (including any option to enter into any of the foregoing) and
is designed to protect any Company against fluctuations in interest rates,
currency exchange rates,  commodity

- 23 -

prices, equity prices or values or similar risks (including any Interest Rate
Protection Agreement or other agreement entered into pursuant to Section 3.4).

''Hedging Obligations'' of any Person mean the obligations
of such Person pursuant to a Hedging Agreement.

''Holdco'' means (i) J.A. Bombardier (J.A.B.) Inc., a
corporation incorporated under the Canada Business Corporations Act or
(ii) any other entity (a ''Succeeding Holdco'') organized under the laws of
Canada or any province thereof or the United States of America or any state
thereof that becomes the immediate parent of the Canadian Borrower.

''including'' shall be interpreted on an inclusive basis and
shall be deemed to be followed by the phrase ''without limitation.''

''Incremental Amendment'' has the meaning set forth in
Section 2.2A.

''Incremental Facility Closing Date'' has the meaning set
forth in Section 2.2A.

''Incremental Term Facility'' means a term loan facility
providing for Incremental Term Loans and documented by an Incremental Amendment
in accordance with Section 2.2A.

''Incremental Term Loans'' has the meaning set forth in
Section 2.2A. 

''Indebtedness'' of any Person means any
indebtedness or liability which, in accordance with GAAP, would be classified as
debt of such Person (excluding deferred taxes and all employee benefit
obligations), but in any event including, without duplication:

(a)

all indebtedness of such Person for or in respect of borrowed
money;

(b)

all indebtedness of such Person evidenced by bonds, debentures,
notes or similar instruments, or upon which interest payments are customarily
made;

(c)

the principal portion of all obligations of such Person under
Capital Leases and Synthetic Leases;

(d)

all indebtedness of such Person in respect of the deferred
purchase or acquisition price of any real or personal property or any services
(whether or not recourse for such indebtedness is limited to the repossession
and sale of any such property) other than trade payables and other accrued
obligations incurred in the ordinary course of business for the purchase of
goods and services for purposes of carrying on such business;

(e)

all Contingent Obligations of such Person;

(f)

for the purposes of Sections 7.1 and 8.1(e) only, all net
obligations of such Person in respect of Hedging Agreements;

(g)

the maximum amount (after giving effect to any prior drawings or
reductions which have been reimbursed) of all letters of credit or letters of
guarantee issued or bankers' acceptances issued by or for such Person and,
without duplication, the face amount of all drafts drawn thereunder (to the
extent unreimbursed or not converted);

- 24 -

                (h)

the aggregate amount of Indebtedness associated with uncollected
accounts receivable of such Person subject at such time to a sale of accounts
receivable (or similar transaction) to the extent such amount would be reflected
as debt on the balance sheet of such Person in accordance with GAAP; and

(i)

all liabilities secured by any Lien (other than Liens for taxes
not yet due and payable or otherwise being contested in good faith) on any
property owned by such Person even though such Person has not assumed or
otherwise become liable for the payment thereof, but limited to the fair market
value of the property;

provided, however, that
''Indebtedness'' shall not include:

(A)

representations, warranties, guarantees, covenants, indemnities,
reimbursement or repurchase obligations in agreements relating to any Permitted
Floorplan Facility or Permitted Receivables Facility that are customary in such
financings; and 

(B)

post-closing payment adjustments to which a seller may become
entitled to the extent such payment is determined by a final closing balance
sheet in connection with the purchase by a Company of any business.

In no event shall Indebtedness of any Person include Qualified
Capital Stock of such Person.  The Indebtedness of any Person shall include the
Indebtedness of any partnership or unincorporated joint venture to the extent
such Person is legally obligated with respect thereto.

''Indemnified Taxes'' means all Taxes (other than Excluded
Taxes) that are imposed on the Administrative Agent, any Lender or any
Transferee (i) in connection with any payments to be made by any Obligor in
connection with the Loans or otherwise hereunder or (ii) in connection with the
transactions described herein but not described in clause (i) (i.e., not
imposed on or in connection with any payments), but only to the extent such
Taxes do not arise as a result of a connection (other than being a party to this
Agreement, participating in the transactions contemplated herein, or enforcing
its rights hereunder) between the Administrative Agent, a Lender or a Transferee
and the jurisdiction imposing such Taxes.

''Indemnitee'' has the meaning set forth in Section 11.5(b).

''Initial Floorplan Facilities'' has the meaning set forth
in Section 4.2(j) of the Original Credit Agreement.

''Initial Intercompany Notes'' means each of the intercompany loans set forth Schedule 1.1(a).

''Initial Receivables Facilities'' has the meaning set forth
in Section 4.2(j) of the Original Credit Agreement.

''Intellectual Property'' has the meaning set forth in
Section 5.17.

''Intercompany Notes'' shall mean the Initial Intercompany
Notes, and any other intercompany loans or promissory notes, substantially in
the form of Exhibit O.

''Interest Coverage Ratio'' means, for any Test Date, the
ratio of (x) Consolidated EBITDA for the four Quarters ending on such Test Date
to (y) Consolidated Interest Expense to the extent paid or payable in cash for
the four Quarters ending on such Test Date. 

- 25 -

                               
''Interest Payment Date'' has the meaning set forth in
Section 3.1(a).

''Interest Period'' means, relative to any Fixed Rate Loan,
the period commencing on (and including) the date on which such Fixed Rate Loan
is made or continued, or converted into, a different type of Fixed Rate Loan,
and ending on (but excluding) (i) in the case of a Bankers' Acceptance Loan, the
day which is approximately 30, 60, 90 or 180 days thereafter (or, if requested
by the Relevant Borrower and agreed to by all Relevant Lenders, 14 days, nine
months or twelve months), (ii) in respect of a LIBOR Loan or EUROLIBOR Loan at
any time during the period specified in Section 2.10(b), the day which is
14 days thereafter, or (iii) in the case of a LIBOR Loan or EUROLIBOR Loan
at any time after such period, the day which numerically corresponds to such
date one, two, three, or six months thereafter (or, if requested by the Relevant
Borrower and agreed to by all Relevant Lenders, 14 days, nine months or twelve
months) (or, if such month has no numerically corresponding date, on the last
Business Day of such month), in each case as the Relevant Borrower may select;
provided, however, that:

(a)

if such Interest Period would otherwise end on a day which is not
a Business Day, such Interest Period shall end on the next following Business
Day (unless, if such Interest Period applies to a LIBOR Loan or EUROLIBOR Loan,
and such next following Business Day is the first Business Day of a calendar
month, in which case such Interest Period shall end on the Business Day next
preceding such numerically corresponding day); and

(b)

no Interest Period may end later than the Revolving Loan Maturity
Date or Term Loan Maturity Date, as applicable.

''Interest Rate Protection Agreement'' means, with respect
to any Person, an interest rate swap, cap or collar agreement or similar
arrangement between such Person and one or more financial institutions providing
for the transfer or mitigation of interest risks either generally or under
specific contingencies.

''Investment'' means (a) the acquisition (whether for cash,
property, services, assumption of Indebtedness, securities or otherwise) of all
or a material part of the assets comprising a business of a Person, shares of
capital stock, bonds, notes, debentures, partnership, joint venture or other
ownership interests or other securities of a Person, (b) any deposit with, or
advance, loan or other extension of credit to, a Person (other than deposits
made in connection with the purchase of any goods or services in the ordinary
course of business) or (c) any other capital contribution to or investment in a
Person incurred for the benefit of a Person.

''Investor Agreements'' means the Management Agreement, the
Stockholders Agreement, the Registration Rights Agreement and the Subscription
Agreements.

''Investors'' means Bain Capital Investors, LLC, Beaudier
Group and Caisse de dépôt et placement du Québec and a group of investors
arranged by them for the purpose of effectuating the Equity Financing and the
entering into and deposit of funds pursuant to the Escrow Agreement.

''ISP'' has the meaning set forth in Section 2.11(f).

''Issuing Lenders'' means collectively, (a) in the case of
Letters of Credit issued under the Canadian Revolving Facility, Bank of Montreal
(or any successor thereto), (b) in the case of Letter of Credit issued under the
U.S. Revolving Facility, Bank of Montreal (or any successor thereto) as issuer
of Letters of Credit under the Canadian Revolving Facility and (c) any other
Lender that may become an Issuing Lender pursuant to Section 2.11(j), with
respect to Letters of Credit issued by such Lender (each, an ''Issuing Lender'').

- 26 -

                               
''Joint Book Runners'' means, with respect to the New Term
Facility, Merrill Lynch and UBS Securities LLC and, with respect to the
Revolving Facilities, BMO Nesbitt Burns Inc. and Royal Bank of Canada.

''Judgment Currency'' has the meaning set forth in
Section 11.11.

''L/C Documents'' means, with respect to any Letter of
Credit, such Letter of Credit, any amendments thereto, any documents delivered
in connection therewith, any application therefor, and any agreements,
instruments, guarantees or other documents (whether general in application or
applicable only to such Letter of Credit) governing or providing for the rights
and obligations of the parties concerned or at risk.

''L/C Interest'' means, with respect to any Canadian
Revolving Lender or U.S. Revolving Lender, such Lender's participation interest
in the relevant Issuing Lender's liability under Letters of Credit issued under
the Relevant Facility and such Lender's rights and interests in Reimbursement
Obligations in respect thereof and fees, interest and other amounts payable in
connection with such Letters of Credit and such Reimbursement Obligations.

''L/C Maximum Amount'' has the meaning set forth in Section
2.11(d)(ii).

''L/C Obligations'' means the obligations of the Relevant
Borrower in respect of any Letter of Credit.

''Lead Arrangers'' means, with respect to the New Term
Facility, Merrill Lynch and UBS Securities LLC and, with respect to the
Revolving Facilities, BMO Nesbitt Burns Inc. and Royal Bank of Canada.

''Lead Arrangers' Counsel'' means Cahill Gordon & Reindel
LLP, Davies Ward Phillips & Vineberg LLP
and/or such other law firm or firms as the Lead Arrangers may designate from
time to time.

''Lease'' means any lease, sublease, offer to lease, grant
of a usufructory right or privilege, franchise agreement, license, occupancy or
concession agreement, or any other arrangement in substance similar to any of
the foregoing.

''Legal or Regulatory Change'' has the meaning set forth in
Section 3.16.

''Lender Affiliate'' means (a) with respect to any Lender, (i) a
Person directly or indirectly controlling, controlled by or under common control
with such Lender or (ii) any entity (whether a corporation, partnership, trust
or otherwise) that is engaged in making, purchasing, holding or otherwise
investing in bank loans and similar extensions of credit in the ordinary course
of its business and is Wholly Owned or controlled by a Lender or a Lender
Affiliate of such Lender and (b) with respect to any Lender that is a fund that
invests in bank loans and similar extensions of credit, any other fund that
invests in bank loans and similar extensions of credit and is managed by the
same investment advisor as such Lender or by an Affiliate of such investment
advisor.

''Lenders'' means, collectively, the Canadian Revolving
Lenders, the U.S. Revolving Lenders and the New Term Lenders (including the
Issuing Lenders and Swingline Lenders), any Additional Lenders and any Person
who becomes a Lender by way of assignment in accordance with the terms hereof
(each, individually, a ''Lender'').

- 27 -

                               
''Letter of Credit'' means a standby letter of credit, a
documentary letter of credit or commercial letter of credit issued for the
account of the Canadian Borrower or the U.S. Revolving Borrower, as the case may
be, by the Issuing Lender pursuant to Section 2.11, as such Letter of Credit may
be amended, modified, extended renewed or replaced.

''LIBOR'' means, for each Interest Period for any LIBOR
Loan, the aggregate of (a) the applicable LIBOR Reserve Percentage, if any, and
(b) the rate per annum, expressed on the basis of a 360-day year, rounded
upwards, if necessary, to the nearest one-hundredth of one percent, equal to the
average of the offered quotations appearing on Telerate Page 3750 (or if such
Telerate Page shall not be available, any successor or similar service as may be
selected by the Administrative Agent) as of 11:00 a.m. (London, England time)
(or as soon thereafter as practicable), on the date two (2) Business Days prior
to and for value on the first day of such Interest Period for deposits in U.S.
Dollars having a term comparable to such Interest Period and in an amount
comparable to the principal amount of the LIBOR Loan to which such Interest
Period relates.  If neither such Telerate Page 3750 nor any successor or similar
service is available, then ''LIBOR'' shall mean, with respect to any Interest
Period for any applicable LIBOR Loan, the rate of interest per annum,
expressed on the basis of a 360-day year, rounded upwards, if necessary, to the
nearest basis point, determined by the Administrative Agent as of 11:00 a.m.
(London, England time) (or as soon thereafter as practicable), on the date
two (2) Business Days before and for value on the first day of such Interest
Period, to be the arithmetic average of the prevailing rates per annum at
the time of determination and in accordance with the then existing practice in
the applicable market, for the offering to the Administrative Agent, by one or
more prime banks selected by such Agent in its reasonable discretion, in the
London interbank market, of deposits in U.S. Dollars for delivery on the first
day of such Interest Period and having a term comparable to such Interest Period
and in an amount comparable to the LIBOR Loan to which such Interest Period
relates.  Each determination by the Administrative Agent of LIBOR shall be
conclusive and binding, absent manifest error, and may be computed using any
reasonable averaging and attribution method.

''LIBOR Loan'' means a Loan bearing interest at a
rate determined by reference to LIBOR.

''LIBOR Reserve Percentage'' means, for any day during an
Interest Period in respect of a LIBOR Loan, the maximum rate per annum,
if any, expressed on the basis of a 360-day year, at which reserves (including
any supplement, marginal and emergency) are imposed on such day by the Board of
Governors of the U.S. Federal Reserve System (or any successor thereof) on
''Eurocurrency liabilities'', as defined in such Board's Regulation D (or in
respect of any other category of liabilities that includes deposits by reference
to which the interest rate on LIBOR Loans is determined on any category of
extension of credit or other assets that include loans by non-United States
offices of any Lender or Participant to United States residents) subject to any
amendments on such reserve requirement by such Board or its successor, taking
into account any transitional adjustments thereto.  The LIBOR Reserve Percentage
shall automatically be adjusted as of the date of any change in the aforesaid
rate.

''Lien'' means any mortgage, pledge, hypothecation,
assignment, deposit arrangement, security interest, security titles,
encumbrance, lien (statutory or otherwise), or charge of any kind, statutory,
consensual or otherwise, including any agreement to give any of the foregoing,
any conditional sale or other title retention agreement, and any lease in the
nature thereof.

''Loan'' means a U.S. Prime Rate Loan, a Canadian
Prime Rate Loan, a Bankers' Acceptance Loan, a LIBOR Loan, a U.S. Base Rate
Loan, a EUROLIBOR Loan, a loan under the Canadian Swingline Facility or under
the U.S. Swingline Facility or any other loan permitted hereunder, including any
Incremental Term Loans, and ''Loans'' means any or all of
them, as the context may require.

- 28 -

                               
''Majority Lead Arrangers'' means a majority in number of
the Lead Arrangers.

''Majority Lenders'' means

(i)

at any time prior to the Closing Date, Lenders holding at least a
majority of the aggregate amount of the Commitments, and

(ii)

at any time after the Closing Date, Lenders holding at least a
majority of the sum of (without duplication) (a) the aggregate principal amount
of outstanding Loans, plus (b) the aggregate amount of all L/C
Obligations, plus (c) the aggregate of the Canadian Revolving Unused
Commitment and the U.S. Revolving Unused Commitment then in effect; provided,
however, that if any Lender shall be a Defaulting Lender at such time,
then there shall be excluded from the determination of Majority Lenders the
aggregate principal amount of the Credit Exposure of such Lender at such time.

''Management Agreement'' means the Management Agreement
dated as of the Closing Date among J.A. Bombardier (J.A.B.) Inc., the Canadian
Borrower and the Sponsors, as amended or modified from time to time as permitted
by this Agreement.

''Material Adverse Effect'' means a materially adverse
effect on (a) the business, operations, financial condition, liabilities
(contingent or otherwise) or prospects of the Obligors and their consolidated
Subsidiaries, taken as a whole, (b) the ability of the Obligors to perform their
obligations under the Credit Documents or (c) the rights of or benefits
available to the Lenders under the Credit Documents.

''Material Contract'' means any contract, license or
agreement involving aggregate payments in any year to or by the Canadian
Borrower or any of its Subsidiaries in excess of Cdn$5.0 million (other than
purchase orders entered into in the ordinary course of business).

''Material Subsidiary'' means, at any time, (i) the U.S.
Revolving Borrower and (ii) any other Subsidiary of the Canadian Borrower that
satisfies any of the following requirements:

(a)

Consolidated Assets of such Subsidiary exceed an amount equal to
5% of Consolidated Assets of the Canadian Borrower as determined as of the end
of each of the two Quarters most recently ended for which financial statements
of the Canadian Borrower are available; or

(b)

Consolidated Revenues of such Subsidiary exceed an amount equal
to 5% of Consolidated Revenues of the Canadian Borrower as determined for each
of the two Quarters most recently ended for which financial statements of the
Canadian Borrower are available.

''Merrill Lynch'' has the meaning set forth in the preamble
hereto.

''Moody's'' means Moody's Investors Service, Inc. or any
successor to the business of such company in the rating of securities.

''Mortgage'' means an agreement, including a mortgage,
debenture, immovable hypothec, deed of trust or any other document, creating and
evidencing a Lien on a Mortgaged Real Property, which shall be in form and
substance reasonably satisfactory to Administrative Agent, with such schedules
and including such provisions as shall be necessary to conform such document to
applicable or local law or as shall be customary under local law, as the same
may at any time be amended in accordance with the terms thereof and hereof.

- 29 -

                               
''Mortgage Amendment'' has the meaning set forth in Section
4.3A(g).

''Mortgage Policy'' has the meaning set forth in Section
4.3A(g).

''Mortgaged Real Property'' means (a) each Real Property
identified as Mortgaged Real Property on Schedule 5.26(a) and (b) each
Real Property, if any, which shall be subject to a Mortgage delivered after the
Closing Date pursuant to Section 6.10.

''Multiemployer Plan'' means a Plan subject to Title IV of ERISA which is a multiemployer plan as defined in Section 3(37) or 4001(a)(3) of
ERISA.

''Net Available Proceeds'' means:

(i)

in the case of any Disposition Event, the amount of Net Cash
Payments received by the Person consummating such Disposition Event in
connection with such Disposition Event;

(ii)

in the case of any Casualty Event, the aggregate amount of cash
proceeds of insurance, condemnation or expropriation awards and other
compensation received by the Person whose Property was subject to such Casualty
Event in respect of such Casualty Event net of (A) fees and expenses incurred or
reasonably estimated to be incurred by such Company in connection with recovery
thereof, (B) repayments of Indebtedness (other than Indebtedness hereunder) to
the extent secured by a Lien on such Property that is permitted by the Credit
Documents, and (C) any Taxes paid or payable (or estimated to be payable by the
Canadian Borrower acting reasonably and in good faith) by any Company in respect
of the amount so recovered (after application of all credits and other offsets
at the discretion of the Canadian Borrower acting reasonably and in good faith);
and

(iii)

in the case of any Equity Issuance or any Debt Issuance, the
aggregate amount of all cash received in respect thereof by the Person
consummating such Equity Issuance or Debt Issuance, net of all investment
banking fees, discounts and commissions, legal fees, consulting fees,
accountants' fees, underwriting discounts and commissions and other fees and
expenses actually incurred in connection therewith.

''Net Cash Payments'' means, with respect to any Disposition
Event, the aggregate amount of all cash payments (including any cash payments
received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but
only as and when received) received by any Company directly or indirectly in
connection with such Disposition Event, net (without duplication) of (i) the
amount of all out-of-pocket fees and out-of-pocket expenses paid (or estimated
to be payable by the Canadian Borrower acting reasonably and in good faith) by
any Company in connection with such Disposition Event (the ''Relevant
Disposition''); (ii) any Taxes paid or reasonably estimated to be payable by
any Company as a result of the Relevant Disposition (after application of all
credits and other offsets at the discretion of the Canadian Borrower acting
reasonably and in good faith); (iii) any repayments by any Company of
Indebtedness (other than the Obligations) to the extent that such Indebtedness
is secured by a Permitted Lien on the subject Property required to be repaid as
a condition to the purchase or sale of such Property; (iv) amounts required to
be paid to any Person (other than any Company) owning a beneficial interest in
the subject Property; and (v) amounts reserved, in accordance with GAAP, against
any liabilities associated with such Relevant Disposition and retained by any
Company after such Relevant Disposition and related thereto, including pension
and other post-employment benefit liabilities, liabilities related to
environmental matters and liabilities under any indemnification obligations
associated with such Relevant Disposition, all as reflected in an Officer's
Certificate delivered to Administrative Agent.

- 30 -

                               
''New Term Commitment'' means, for each New Term Lender, the
amount identified as its New Term Commitment on Schedule 1.1 or on the
execution pages hereof, or both, or in an Assignment Agreement executed and
delivered by such Lender, as such amount shall be reduced as a result of any
assignment made by such New Term Lender in accordance with the provisions of
Section 11.3(b) or as a result of any permanent reduction in the amount thereof
pursuant to Sections 2.7, 2.8, 3.6, 3.7 and 3.8.

''New Term Committed Amount'' means, at any time, the
aggregate of the New Term Commitments at such time; provided that the
aggregate New Term Committed Amount shall not exceed US$50,000,000.

''New Term Facility'' means, at any time, that
certain non-revolving loan facility in the principal amount equal to the New
Term Committed Amount from time to time, established by the New Term Lenders in favor of the Canadian Borrower pursuant to Section 2.2.

''New Term Lenders'' means, collectively, each Person
identified as a ''New Term Lender'' on Schedule 1.1 or on the execution
pages hereof, or both, each acting through its lending office set forth on 
Schedule 1.1 or such other lending office as such Person may specify in
accordance with Section 11.1, and any Person who becomes a New Term Lender by
way of assignment in accordance with Section 11.3(b), together with such
Person's successors and permitted assigns (each, individually, a ''New 
Term Lender'').

''New Term Outstanding Amount'' means, at any time, the
aggregate principal amount of all Loans then outstanding under the New Term
Facility.

''Note'' or ''Notes'' means a promissory note of the
Relevant Borrower in favor of a Relevant Lender in the amount of such Lender's
U.S. Revolving Commitment, Canadian Revolving Commitment or New Term Commitment,
as the case may be, substantially in the form of Exhibit F (or as may
otherwise be required by the Relevant Lender) executed and delivered to such
Lender pursuant to Section 2.9.

''Notice of Borrowing'' means a request by a Borrower for an
Extension of Credit substantially in the form of Exhibit G.

''Notice of Continuation/Conversion'' means a request by a
Borrower substantially in the form of Exhibit H to continue an existing
Fixed Rate Loan for a further Interest Period or to convert one type of Loan to
another type of Loan, as more particularly described in Section 3.2.

''Obligations'' means all amounts, direct or indirect,
contingent or absolute, of every type or description, and at any time existing,
owing by any Obligor to any Creditor or their respective successors, transferees
or assignees pursuant to the terms of any Credit Document relating to the Loans
or secured by any of the Security Documents (including the relevant Issuing
Lender in respect of each Letter of Credit and the relevant Swingline Facility
Lender in respect of the relevant Swingline Facility) and any liabilities and
obligations of any Obligor to any Lender or Lender Affiliate under Hedging
Agreements, whether or not the right of such Person to payment in respect of
such obligations and liabilities is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured or unsecured and whether or not such claim is
discharged, stayed or otherwise affected by any bankruptcy case or insolvency or
liquidation proceeding.

''Obligors'' means, collectively, the Borrowers and the
Guarantors, and ''Obligor'' means any one of them, as the context may
require.

- 31 -

                               
''Officer's Certificate'' means, as applied to any entity, a
certificate executed on behalf of such entity by its Chairman of the Board (if
an officer) or its Chief Executive Officer or its President or one of its Vice
Presidents (or an equivalent officer) and, in respect of any financial matters,
by its Chief Financial Officer, Vice President-Finance or its Treasurer (or an
equivalent officer) or any Assistant Treasurer in their official (and not
individual) capacities.

''Operating Lease'' means any Lease of any property (whether
real, personal, movable or immovable or mixed) which, in accordance with GAAP,
should be accounted for by the lessee as an Operating Lease.

''Organizational Document'' means, with respect to any
Person, its certificate of incorporation, its by-laws, its partnership
agreement, its memorandum and articles of association, articles of
incorporation, continuation or amalgamation, share designations or similar
organizational documents and all shareholder agreements, voting trusts and
similar arrangements applicable to any of its authorized Equity Interests.

''Original Borrowers'' has the meaning set forth in the
recitals hereto.

''Original Credit Agreement'' has the meaning set forth in
the recitals hereto.

''Original U.S. Revolving Borrower'' has the meaning set
forth in the recitals hereto.

''Original U.S. Term Borrower'' has the meaning set forth in
the recitals hereto.

''Other Taxes''  means any and all present or future stamp
or documentary taxes or other excise or property taxes, charges or similar
levies arising from the execution, registration, delivery or enforcement of, or
otherwise with respect to, the Credit Documents, and any and all interest and
penalties related thereto.

''Outstanding Amount'' means, as the context requires, the
Canadian Revolving Outstanding Amount, the U.S. Revolving Outstanding Amount or
the New Term Outstanding Amount.

''Participant'' has the meaning set forth in
Section 11.3(c).

''Payment Currency'' has the meaning set forth in
Section 11.11.

''PBGC'' means the U.S. Pension Benefit Guaranty Corporation
referred to and defined in ERISA and any successor thereto.

''Pension Plan'' means an employee pension benefit plan
(other than a Multiemployer Plan) which is subject to Title IV of ERISA or
subject to the minimum funding standards under Section 412 of the Code or
Section 302 of ERISA and is maintained or contributed to (or required to be
contributed to) by any ERISA Entity or with respect to which any Obligor or any
of its Subsidiaries could incur liability under Title IV of ERISA.

''Permits'' has the meaning set forth in Section 5.23.

''Permitted Acquisition'' means any Acquisition effected in
compliance with clause (o) of the definition of ''Permitted Investments.''

- 32 -

                               
''Permitted Business'' means, at any time:

(a)

any business or operation which is the same as, substantially
similar to or reasonably related to the principal business or operation carried
on or conducted by the Obligors as of the Effective Date; or

(b)

any other business or operation, the assets or revenues of which
(together with the assets or revenues of all businesses or operations other than
those described in clause (a)) do not exceed in the aggregate 5% of Consolidated
Assets or Consolidated Revenues of the Canadian Borrower as reflected in the
most recent consolidated financial statements delivered pursuant to
Section 6.1(a) or Section 6.1(b), as applicable (measuring assets and
Consolidated Assets as of the last day of the most recent Quarter and measuring
revenues and Consolidated Revenues for the four most recent Quarters).

''Permitted Floorplan Facility'' means (a) the Initial Floorplan Facilities and (b) any other facility providing for the financing of
purchases of inventory from the Canadian Borrower and its Subsidiaries by
dealers, distributors and other customers of such products on terms that are
reasonably customary for such financings and subject to the provisions of
Section 7.15.

''Permitted Holdco Debt'' has the meaning set forth in the
definition of ''Permitted Indebtedness''.

''Permitted Holder(s)'' means one or more of Bain, Beaudier
or Caisse, provided that Caisse shall not be a Permitted Holder unless
Bain or Beaudier (or both taken together) owns, directly or indirectly, issued
and outstanding Equity Interests of Holdco having a greater percentage of the
ordinary voting power of the then outstanding Equity Interests of Holdco than
does Caisse.

''Permitted Indebtedness'' means any Indebtedness of the
Canadian Borrower and its Subsidiaries (and, with respect to clause (l) below, Holdco) which is:

(a)

Indebtedness arising under the Credit Documents;

(b)

Indebtedness under or in respect of any Capital Lease or Purchase
Money Obligations hereafter entered into in compliance with Section 7.8 or any
Synthetic Lease that, together with Indebtedness incurred in reliance on
clause (p) below and Contingent Obligations incurred in reliance on
Section 7.15(i), does not exceed Cdn$50.0 million in the aggregate outstanding
at any time; provided that no more than Cdn$15.0 million in the aggregate
may be entered into in any fiscal year (exclusive of renewals or refinancings);

(c)

Indebtedness existing on the Effective Date and set forth on 
Schedule 7.1 (which Schedule 7.1 shall also indicate which of such
Indebtedness is secured by a Permitted Lien) as to Holdco and each of its
Subsidiaries;

(d)

the Senior Subordinated Notes;

(e)

Deferred Acquisition Obligations and Acquired Indebtedness 
so long as (i) such Indebtedness was not incurred or assumed at any time when a
Default or Event of Default had occurred and was continuing or would or did
result from the incurrence or assumption of such Indebtedness, (ii) in the case
of Acquired Indebtedness, the principal amount thereof has not increased at any
time subsequent to the incurrence of such debt, and (iii) the aggregate amount
of 

- 33 -

    Indebtedness outstanding at any time pursuant to this clause (e) shall not
  exceed Cdn$25.0 million;

(f)

Indebtedness incurred solely to refinance Indebtedness then
outstanding and permitted under clauses (b), (c), (e) and this clause (f); 
provided that (i) the aggregate amount of the obligations incurred in
respect of such Indebtedness (both actual and contingent) does not exceed the
aggregate amount of obligations existing in respect of the Indebtedness being
refinanced at such time (both actual and contingent), (ii) such Indebtedness
shall be on then current normal commercial terms, and (iii) after giving effect
to such Indebtedness no Default or Event of Default shall exist;

(g)

Contingent Obligations permitted by Section 7.15;

(h)

Indebtedness owed to (including obligations in respect of letters
of credit for the benefit of) any Person providing workers' compensation,
health, disability or employee benefits or property, casualty or liability
insurance, pursuant to reimbursement or indemnification obligations to such
Person, in each case incurred in the ordinary course of business;

(i)

Indebtedness in respect of performance bonds, bid bonds, appeal
bonds, surety bonds and similar obligations, in each case provided in the
ordinary course of business including those incurred to secure health, safety
and environmental obligations in the ordinary course of business;

(j)

Indebtedness related to any Permitted Receivables Facility
described in clause (h) of the definition of ''Indebtedness'' that is non-recourse
to any assets other than the associated accounts receivable, chattel paper and
related assets except to the extent permitted by Section 7.15(g);

(k)

Indebtedness under Hedging Agreements permitted by Section 7.16;

(l)

Additional Subordinated Debt, 100% of the Net Available Proceeds
of which are contributed to the Canadian Borrower (if issued by Holdco) and are
applied by the Canadian Borrower to repay Loans under the New Term Facility (to
the extent any are outstanding) in accordance with Section 3.7;

(m)

intercompany Indebtedness of the Companies to the extent
constituting a Permitted Investment under clauses (d), (e), (f) and (j) of the
definition thereof;

(n)

Indebtedness of Companies that are not Obligors under lines of
credit extended by third Persons to such Companies, the proceeds of which are
used by such Companies for their working capital and general corporate purposes,
so long as the Equivalent Amount of the outstanding principal amount of all such
Indebtedness shall not exceed Cdn$60.0 million in the aggregate outstanding at
any time; 

(o)

Indebtedness incurred by a Receivables Co. in connection with a
Permitted Receivables Facility that, except to the extent permitted by Section
7.15(g), is non-recourse to any other Company that is not a Receivables Co.; and

(p)

Indebtedness in addition to that permitted by the foregoing
clauses (a) through (o) that, together with Indebtedness incurred in reliance on
clause (b) above and Contingent Obligations 

- 34 -

      incurred in reliance on Section 7.15(i), does not exceed
  Cdn$50.0 million in the aggregate outstanding at any time.

''Permitted Indebtedness'' shall also include (i) unsecured
Indebtedness of Holdco (''Permitted Holdco Debt'') that (A) does not
benefit from any Guarantee by the Canadian Borrower or any of its Subsidiaries,
(B) will not mature prior to the date that is 91 days after the Term Loan
Maturity Date, (C) has no scheduled amortization or payments of principal, (D)
does not permit any payments in cash of interest prior to the fifth anniversary
of the date of issuance or incurrence thereof, (E) has no mandatory prepayment,
repurchase or redemption, covenant, default and remedy provisions other than
those customary for senior discount notes of an issuer that is the parent of a
borrower under senior secured credit facilities, and in any event, with respect
to covenant, default and remedy provisions, no more restrictive than those set
forth in the Senior Subordinated Notes taken as a whole (other than provisions
customary for senior discount notes of a holding company), and (F) contains
provisions with respect to paid-in-kind interest which are reasonably
satisfactory to the Administrative Agent and (ii) any Permitted Holdco Debt that
is assumed by the Canadian Borrower (such assumed Indebtedness, ''Pushdown
Holdco Debt'') in connection with the amalgamation or merger of the Canadian
Borrower with Holdco in accordance with Section 7.4.

''Permitted Investments'' means Investments which are:

(a)

Cash Equivalents;

(b)

accounts receivable, chattel paper created, acquired or arising
in the ordinary course of business and payable or dischargeable in accordance
with customary trade terms;

(c)

inventory, raw materials and general intangibles (to the extent
any such general intangible is not a Capital Expenditure) acquired in the
ordinary course of business;

(d)

Investments by any Company in any Obligor and by any Company that
is not an Obligor into another Company that is not an Obligor;

(e)

Investments in the form of debt or equity by any Obligor in any
Company that is not an Obligor; provided that such Investments shall be
in the form of an intercompany loan to the maximum extent permitted by
applicable law without a reasonable possibility of material adverse tax
consequences to the Canadian Borrower and its Subsidiaries (as determined by the
Canadian Borrower acting reasonably and in good faith), which intercompany loan
shall (x) be evidenced by an Intercompany Note pledged to the Administrative
Agent for the ratable benefit of the Secured Parties (either directly as
security for the Obligations or indirectly by way of a pledge to an Obligor as
security for another Intercompany Note) and (y) be secured by a pledge of assets
by the obligor on such Intercompany Note to the maximum extent permitted by
applicable law without a reasonable possibility of material adverse tax
consequences to the Canadian Borrower and its Subsidiaries (as determined by the
Canadian Borrower acting reasonably and in good faith) (subject to contractual
limitations to which the obligor is subject, and subject to the provisions of
the last paragraph of Section 6.11);

(f)

Investments existing on the Effective Date and set forth on 
Schedule 5.18;

(g)

Investments the sole consideration for which is common shares of
Holdco constituting an acquisition (i) of the ownership or use of any property
or assets of, or (ii) of the ownership and control of any securities (other than
merely for portfolio investment purposes, which shall only be permitted if
qualifying as a Cash Equivalent) issued by another Person engaged in, a 

- 35 -

  Permitted Business; provided
  that in any such case such intended acquisition is viewed both by the Canadian
  Borrower and by such Person not to be hostile but to be voluntary and
  consensual;

(h)

Investments made as a result of the receipt of non-cash
consideration in connection with a Disposition permitted by Section 7.4;

(i)

Investments in securities of trade creditors, licensees,
suppliers or customers received in compromise of obligations of such Persons
incurred in the ordinary course of business, including pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors, licensees, suppliers or customers;

(j)

Investments by any Company or a Receivables Co. in connection
with a Permitted Receivables Facility;

(k)

travel and entertainment advances and relocation and other loans
made by the Canadian Borrower to officers and employees of the Canadian Borrower
or any of its Subsidiaries in the ordinary course of business;

(l)

loans made by the Canadian Borrower to senior management of the
Canadian Borrower and its Subsidiaries for purposes of their purchasing Equity
Interests of Holdco not to exceed Cdn$5.0 million in the aggregate outstanding
at any time;

(m)

Investments in Hedging Agreements effected in accordance with
Section 7.16;

(n)

Contingent Obligations otherwise permitted by this Agreement;

(o)

Investments made in order to consummate an Acquisition; 
provided, however, that

(i)

no Default or Event of Default exists or will result therefrom;

(ii)

on a pro forma basis, after giving effect to such Acquisition(s),
the Canadian Borrower would have been in compliance with Section 7.17 on the
last day of the most recently completed Quarter (assuming, for purposes of
Section 7.17, that such Acquisition had occurred on the first day of the
trailing four Quarter period ending on such last day) as evidenced in an
Officer's Certificate delivered to the Administrative Agent at least ten
Business Days prior to the consummation of such Acquisition, accompanied by
supporting schedules and data in reasonable detail; 

(iii)

the aggregate amount of the Acquisition Consideration (which for
each Acquisition shall be measured at the date of consummation thereof) for all
Acquisitions consummated since the Effective Date shall not exceed Cdn$25.0
million in the aggregate outstanding at any time (net of return on such
Investments); and

(iv)

the Person acquired shall be merged with or into an Obligor or
shall become an Obligor; 

(p)

so long as no Default or Event of Default shall have occurred and
be continuing or would result therefrom, additional Investments that do not
exceed the Cumulative Growth Amount immediately prior to the time of making such
Investment; and

- 36 -

                (q)

additional Investments that do not exceed Cdn$50.0 million in the
aggregate outstanding at any time (net of return on such Investments).

''Permitted Liens'' means:

(a)

any Lien securing any Obligation;

(b)

any Lien for Taxes, rates, assessments or other governmental
charges not yet due or for which installments have been paid based on reasonable
estimates pending final assessments, or any Lien for Taxes being contested in
good faith by appropriate actions or proceedings for which adequate cash
reserves determined in accordance with GAAP have been established, which actions
or proceedings (or order entered in connection with such actions or proceedings)
have the effect of preventing the forfeiture or sale of the property or assets
subject to any such Lien, so long as any such Lien shall in all respects be
subject and subordinate in priority to the Lien and security interest created
and evidenced by the Security Documents, except if and to the extent that the
law or regulation creating, permitting or authorizing such Lien provides that
such Lien is or must be pari passu with or superior to the Lien
and security interest created and evidenced by the Security Documents;

(c)

any Lien in respect of property imposed by law arising in the
ordinary course of business such as materialmen's, construction, mechanics',
warehousemen's, carrier's, landlord's and any other non-consensual statutory
Lien the obligation secured by which is not yet due and payable and which has
not at such time been filed or exercised and of which none of the Secured
Parties or the Obligors have been given notice, or is being contested in good
faith by appropriate actions or proceedings for which adequate reserves
determined in accordance with GAAP have been established, which proceedings (or
order entered in connection with such actions or proceedings) have the effect of
preventing the forfeiture or sale of the property or assets subject to any such
Lien, so long as any such Lien shall in all respects be subject and subordinate
in priority to the Lien and security interest created and evidenced by the
Security Documents, except if and to the extent that the law or regulation
creating, permitting or authorizing such Lien provides that such Lien is or must
be pari passu with or superior to the Lien and security interest created
and evidenced by the Security Documents;

(d)

any pledge or deposit made in the ordinary course of business to
secure payment of any workers' compensation insurance, unemployment insurance,
pension or other social security program imposed by any Governmental Authority;

(e)

any Lien arising from or constituted by a good faith deposit in
connection with or to secure the performance of any tender, bid, lease,
government contract or any performance and return of money bond or other similar
obligation incurred in the ordinary course of business (other than any such
obligation in respect of the payment of borrowed money);

(f)

any Lien arising from or constituted by any good faith deposit in
connection with or to secure the performance of any statutory obligation, and
any surety or appeal bond;

(g)

any easement, right-of-way, restrictive covenant, restriction
(including zoning and land use restriction), matter of plat, survey, minor
defect or irregularity in title and other similar claims, charges or
encumbrances which do not, in any material respect, individually or in the
aggregate, impair the use or value of the encumbered property for its intended
purposes;

- 37 -

                (h)

undetermined or inchoate Liens, rights of distress and charges
incidental to current operations of the Canadian Borrower and its Subsidiaries
which have not at such time been filed or exercised and of which none of the
Secured Parties has been given notice, or which relate to obligations not due or
payable;

(i)

reservations, limitations, provisos and conditions expressed in
any original grants from any Governmental Authority or other grants of Real
Property or held by any Governmental Authority pursuant to statute, or interests
therein, which do not materially affect the use of the affected land for the
purpose for which it is used by that Person or the value thereof;

(j)

the right reserved to or vested in any Governmental Authority by
the terms of any lease, license, franchise, grant or permit acquired by that
Person or by any statutory provision to terminate any such lease, license,
franchise, grant or permit, or to require annual or other payments as a
condition to the continuance thereof;

(k)

Liens resulting from the deposit of cash or securities in
connection with surety and appeal bonds and costs of litigation when required by
law, or in connection with contracts, tenders or condemnation or expropriation
proceedings;

(l)

security given to a public utility or any Governmental Authority
when required by such utility or authority in connection with the operations of
that Person in the ordinary course of its business;

(m)

any judgment Lien the existence of which does not constitute an
Event of Default in respect of which the applicable Obligor shall in good faith
be prosecuting an appeal or proceeding for review which has the effect of
preventing the forfeiture or sale of any Collateral subject to any such Lien,
and any such Lien shall in all respects be subject and subordinate in priority
to the Lien and security interest created and evidenced by the Security
Documents, except if and to the extent that the law or regulating creating,
permitting or authorizing such Lien provides that such Lien is or must be 
pari passu with or superior to the Lien and security interest created and
evidenced by the Security Documents;

(n)

any Lien arising by virtue of any statutory or common law
provision relating to banker's liens, rights of set-off, recoupment, combination
of accounts or similar rights as to deposit accounts or other funds maintained
with a creditor depository institution;

(o)

any Lien existing on the Effective Date in respect of Permitted
Indebtedness, other than as referred to in clause (p); provided that (i) the
aggregate amount secured by all such Liens shall not exceed the amount so
secured on the Effective Date, and (ii) no such Lien shall extend to any
property other than the property subject thereto on the Effective Date and,
where so provided for as of the Effective Date, any after-acquired property, nor
shall any such Lien secure an amount in excess of that secured on the Effective
Date;

(p)

Liens under Capital Leases or Operating Leases or Liens to secure
payment of Purchase Money Obligations existing on the Closing Date or entered
into thereafter; provided that (i) the aggregate amount secured by
Capital Leases, Operating Leases and Purchase Money Obligations entered into
after the Closing Date shall not exceed the original cost of the property which
is subject to such Capital Lease or Operating Lease or in respect of which such
Purchase Money Obligation arose, and (ii) no such Lien shall extend to any
property other than that which is subject to such Capital Lease, Operating Lease
or in respect of which such Purchase Money Obligation arose;

- 38 -

                (q)

any Lien to secure Acquired Indebtedness; provided that (i) such
Lien existed at the time such Person became a Subsidiary of the Canadian
Borrower (or was merged or amalgamated into the Canadian Borrower or any of its
Subsidiaries) or with respect to the foregoing or any of its Subsidiaries such
Lien existed at the time such Acquired Indebtedness was assumed by the Canadian
Borrower or such Subsidiary and, in each case, was not granted and did not arise
in connection with or in contemplation of, any such transaction, (ii) the
aggregate amount secured by all such Liens shall not exceed the original cost of
the property which is subject to such Capital Lease or Operating Lease or in
respect of which such Purchase Money Obligations arose, and (iii) no such Lien
shall, following any merger or amalgamation, extend to any property other than
the property of such Person at the time of such transaction;

(r)

any renewals or replacements of the Liens referred to in
clause (o), (p) or (q) above (subject to the restrictions contained in such
clauses);

(s)

Liens under shareholders' or similar agreements existing as at
the Effective Date and relating to Equity Securities of non-wholly owned
Subsidiaries or Permitted Investments of the Canadian Borrower or any of its
Subsidiaries;

(t)

Liens on accounts receivable, chattel paper and related assets
sold or transferred under agreements relating to any Permitted Receivables
Facility;

(u)

Liens under agreements relating to any Indebtedness incurred
pursuant to clause (n) of the definition of ''Permitted Indebtedness'';

(v)

consensual Liens in the Province of Quebec securing the payment
of rent and other amounts customarily owed to a landlord under leases of Real
Property in Quebec;

(w)

Liens created or deemed to exist by the establishment of trusts
or other similar arrangements in connection with self-insurance programs;

(x)

additional Liens securing Permitted Indebtedness that does not
exceed Cdn$10.0 million in the aggregate at any time; and

(y)

Liens on Property existing on the Closing Date and set forth in
Schedule 7.2; provided that such Liens may secure only those
obligations so secured on the Effective Date and any extensions, renewals and
replacements thereof permitted hereunder.

''Permitted Receivables Facility'' means the Initial
Receivables Facility and any other transaction providing for the sale or
financing of accounts receivable, chattel paper and related assets of the
Canadian Borrower and its Subsidiaries, including any receivables purchase
facility, factoring arrangement or securitization transaction, regardless of
whether such transaction is effected without recourse to the Canadian Borrower
or the Subsidiary or in any manner that would not be reflected on the
consolidated balance sheet of the Canadian Borrower in accordance with GAAP, in
each case as amended or modified from time to time, that is on terms that are
reasonably customary for such financings and subject to the provisions of
Section 7.15.

''Person'' means any individual, group, partnership, joint
venture, firm, corporation, limited liability company, association, trust or
other enterprise (whether or not incorporated), or any Governmental Authority.

- 39 -

                               
''Plan'' means any employee benefit plan (as defined in
Section 3(3) of ERISA) which is subject to ERISA and with respect to which a
Company or any ERISA Entity is (or, if such plan were terminated at such time,
would under Section 4069 of ERISA be) an ''employer'' within the meaning of
Section 3(5) of ERISA or with respect to which any Obligor or any of its
Subsidiaries could incur liability.

''PPSA'' means the Personal Property Security Act 
(Ontario) and any other applicable Canadian or provincial personal property
security legislation (including the Civil Code of Quebec) as all such
legislation now exists or may from time to time hereafter be amended or
replaced, together with all rules, regulations and interpretations thereunder or
related thereto.  References to sections of the PPSA shall be construed to also
refer to any successor sections.

''Preferred Stock Financing'' means the issuance by Holdco
to Bombardier Inc. or its Affiliates of preferred equity of Holdco of not less
than Cdn$50.0 million.

''Prior Liens'' means Liens which, pursuant to the
provisions of any Security Document, are or may be superior to the Lien of such
Security Document (including, with respect to Security Documents other than the
Mortgages, those set forth on Schedule 7.2).

''Pro Forma Basis'' means, with respect to the BRP
Acquisition and any other Acquisition, Disposition or discontinuation,
appropriate adjustments to reflect the Consolidated EBITDA attributable to the
business being acquired, disposed of or discontinued, any synergies or
reductions, including operating expense reductions, and any Indebtedness or
other liabilities incurred or repaid in connection with such Acquisition,
Disposition or discontinuation, as the case may be, in each case that (x) would
be permitted to be included in a pro forma calculation under Regulation S-X of
the Securities Act of 1933, as amended, or (y) are otherwise reasonably
estimated by the Canadian Borrower in good faith and on the basis of reasonable
assumptions to be realized within 12 months of the date of consummation of the
BRP Acquisition or other Acquisition, Disposition or discontinuation, so long as
such adjustments are set forth in the Officer's Certificate delivered by the
Canadian Borrower to the Administrative Agent with respect to the BRP
Acquisition or any other Acquisition, Disposition or discontinuation.

''Proceeding'' means any claim, counterclaim, action,
judgment, suit, hearing, governmental investigation, arbitration or proceeding,
including by or before any Governmental Authority and whether judicial or
administrative.

''Profit Payment Agreement'' means any agreement to make any
payment the amount of which is, or the terms of payment of which are, in any
respect subject to or contingent upon the revenues, income, cash flow or profits
(or the like) of any Person or business.

''Property'' means any right, title or interest in or to
property or assets of any kind whatsoever, whether real, personal, immovable,
movable or mixed and whether tangible or intangible and including Equity
Interests or other ownership interests of any Person.

''Purchase Money Obligations'' means any Indebtedness
in respect of a Capital Expenditure; provided that such Indebtedness is
limited to the purchase price of the capital property which is the subject of
such Capital Expenditure.

''Pushdown Holdco Debt'' has the meaning set forth in the
definition of ''Permitted Indebtedness''. 

- 40 -

                               
''Qualified Capital Stock'' means with respect to any Person
any Equity Interests of such Person which is not Disqualified Capital Stock.

''Qualified Public Offering'' means any public offering of
the common (or other voting) Equity Interests of the Canadian Borrower or Holdco
pursuant to an effective registration statement (other than a registration
statement on Form S-4, S-8 or any successor or similar form) filed under the
U.S. Securities Act or a prospectus filed under the Securities Act (Ontario)
where the gross proceeds raised are not less than Cdn$75.0 million and the gross
cash proceeds thereof received by the Canadian Borrower are not less than
Cdn$50.0 million.

''Quarter'' means each three-month period ending on
April 30, July 31, October 31 and January 31.

''Real Property'' means all right, title and interest of
any Obligor (including any leasehold estate) in and to a parcel of real or
immovable property owned or operated by any Obligor, whether by lease, license
or other use or occupancy agreement, together with, in each case, all
improvements and appurtenant fixtures, equipment, personal property, easements
and other property and rights incidental to the ownership, lease or operation
thereof or thereon and ''Real Properties'' means all Real Property owned or leased from time
to time by any Obligor.

''Real Property Disclosure Requirements'' means any federal,
state, provincial, local or foreign laws requiring notification of the buyer or
mortgagee of real property of, or notification, registration or filing to or
with any Governmental Authority, prior to the sale or mortgage of or transfer of
control of any real property or establishment, of the actual or threatened
presence or Release in or into the environment, or the use, disposal or handling
of Hazardous Materials on, at, under or near such real property or
establishment.

''Receivables Co.'' means any special purpose Wholly Owned
Subsidiary of the Canadian Borrower (or such other Person agreed to by the
Majority Lead Arrangers) that purchases accounts receivable, chattel paper and
related assets generated by any Company in connection with a Permitted
Receivables Facility.

''Register'' has the meaning set forth in Section 2.9(b).

''Registration Rights Agreement'' means the Registration
Rights Agreement dated as of the Closing Date, among J.A. Bombardier (J.A.B.)
Inc., the Canadian Borrower and the Investors, as the same may be amended or
modified from time to time as permitted by this Agreement.

''Regulation D, O, T, U or X'' means Regulation D, O,
T, U or X respectively, of the Board of Governors of the U.S. Federal Reserve
System as from time to time in effect and any successor to all or any portion
thereof.

''Reimbursement Obligations'' means, at any time, the
obligations of the Canadian Borrower or the U.S. Revolving Borrower then
outstanding, or that may thereafter arise in respect of all Letters of Credit
then outstanding, to reimburse amounts paid by Issuing Lender in respect of any
drawings under a Letter of Credit.

''Release'' means any release, spill, emission, leaking,
pumping, injection, deposit, disposal, discharge, dispersal, leaching or
migration in or into the indoor or outdoor environment.

- 41 -

                               
''Relevant Borrower'' means (a) in the case of the U.S.
Revolving Facility, the U.S. Revolving Borrower and (b) in the case of the
Canadian Revolving Facility or the New Term Facility, the Canadian Borrower.

''Relevant Borrower's Account'' means the Canadian Dollar
and/or U.S. Dollar and/or Euro account in the name of and maintained by the
Relevant Borrower with the Administrative Agent at the Relevant Payment Branch
as set out in Schedule 5.30 or such other account in the United States or
Canada specified from time to time in writing by the Relevant Borrower to the
Administrative Agent.

''Relevant Facility'' means:

(a)

with respect to a Canadian Revolving Lender, the Canadian
Revolving Facility;

(b)

with respect to a U.S. Revolving Lender, the U.S. Revolving
Facility; and

(c)

with respect to a New Term Lender, the New Term Facility.

''Relevant Lenders'' means:

(a)

with respect to the Canadian Revolving Facility, the Canadian
Revolving Lenders;

(b)

with respect to the U.S. Revolving Facility, the U.S. Revolving
Lenders; and

(c)

with respect to the New Term Facility, the New Term Lenders.

''Relevant Payment Account'' means, in the case of any
payment to be made in any currency under any Facility, the account at the
Relevant Payment Branch as the Administrative Agent may specify in writing from
time to time in respect of such Facility and in respect of transactions in such
currency by notice given in accordance with this Agreement to each Borrower,
each Lender and each other Agent.

''Relevant Payment Branch'' means:

(a)

in the case of any payment to be made under the Canadian
Revolving Facility or the New Term Facility, the Administrative Agent's branch
located at 100 King Street West, First Canadian Place, 19th Floor, Toronto,
Ontario M5X 1A1 (the ''Canadian Payment Branch''); and

(b)

in the case of any payment to be made under the U.S. Revolving
Facility, the Administrative Agent's branch located at 115 South LaSalle Street,
11th Floor, Chicago, Illinois 60603 (the ''U.S. Payment Branch'');

or, in either case, such other branch of the Administrative Agent
as the Administrative Agent may specify from time to time by notice given in
accordance with this Agreement to each Borrower, each Lender and each other
Agent.

''Reportable Event'' means a ''reportable event'' as defined
in Section 4043 of ERISA with respect to which the notice requirements have not
been waived.

''Requesting Lender'' has the meaning set forth in
Section 3.17(e).

- 42 -

                               
''Requirement of Law'' means, with respect to any Person,
any federal, provincial, state, local, municipal or foreign (including the
European Union) law, statute, treaty, rule or regulation or final, non-appealable
determination of any arbitrator or any court or other Governmental Authority, in
each case having legally binding effect upon and applicable to such Person or to
any of its property.

''Revolving Facilities'' means, collectively, the Canadian
Revolving Facility and the U.S. Revolving Facility (each, a ''Revolving
Facility'').

''Revolving Loan Maturity Date'' means the fifth anniversary
of the Closing Date or, if such date is not a Business Day, the next succeeding
Business Day.

''S&P'' means Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., or any successor to the business of such division
in the rating of securities.

''Sale and Leaseback Transaction'' means any arrangement,
directly or indirectly, with any Person whereby it shall sell or transfer any
Property used or useful in its business, now owned or hereafter acquired, and
thereafter rent or lease such Property or other Property which it intends to use
for substantially the same purpose or purposes as the Property being sold or
transferred.

''Schedule I Lender'' means a chartered bank of Canada
referred to in Schedule I to the Bank Act (Canada).

''Schedule I Reference Lenders'' means, where there are two
or fewer Canadian Revolving Lenders which are Canadian chartered banks that are
referred to in Schedule I to the Bank Act (Canada), all such Lenders, and
where there are more than two such Lenders, two of such Lenders chosen by the
Administrative Agent and identified as such by written notice given by the
Administrative Agent to the Canadian Borrower and the Relevant Lenders.

''Secured Parties'' means the collective reference to the
Administrative Agent, the Lenders and each party to a Hedging Agreement relating
to the Loans if at the date of entering into such Hedging Agreement such Person
was a Lender or an Affiliate of a Lender.

''Security Agreement(s)'' means the collective reference to
the U.S. Security Agreement, the Canadian Security Agreement and any other
security agreement which may from time to time be executed and delivered by an
Obligor pursuant to Section 4.2.

''Security Documents'' means the U.S. Security
Documents, the Canadian Security Documents, the Intercompany Notes and any other
security documents which may from time to time be executed and delivered by an
Obligor pursuant to Sections 4.2, 6.10, 6.11 and 6.13.

''Senior Subordinated Notes'' means US$200.0 million
aggregate principal amount of 8-3/8% Senior Subordinated Notes due 2013 of the
Canadian Borrower issued on the Closing Date, including the senior subordinated
notes to be issued pursuant to the Exchange Offer or private exchange therefor
as contemplated in the offering document for the Senior Subordinated Notes.

''Single Employer Plan'' means any Plan which is subject to
Title IV of ERISA but which is not a Multiemployer Plan or a Multiple Employer
Plan.

''Solvent'' and ''Solvency'' means, for any Person on a
particular date, that on such date (a) the fair value of the Property of such
Person is greater than the total amount of liabilities, including contingent
liabilities, of such Person, (b) the present fair salable value of the assets of
such Person is not 

- 43 -

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 and liabilities
beyond such Person's ability to pay as such debts and liabilities mature,
(d) such Person is not engaged in a business or a transaction, and is not about
to engage in a business or a transaction, for which such Person's Property would
constitute an unreasonably small capital and (e) such Person is able to pay its
debts as they become due and payable.

''Sponsors'' means Bain, Beaudier and Caisse.

''Stockholders Agreement'' means the Unanimous Shareholders
Agreement dated as of the Closing Date, among J.A. Bombardier (J.A.B.) Inc., the
Canadian Borrower and the Investors, as the same may be amended or modified from
time to time as permitted by this Agreement.

''Subordinated Debt'' means Indebtedness of any Company that
is contractually subordinated to any other Indebtedness of such Company.

''Subscription Agreements'' means each of the Institutional
Investor Share Subscription Agreements dated as of the Closing Date between J.A.
Bombardier (J.A.B.) Inc. and each Investor, as amended or modified from time to
time as permitted by this Agreement.

''Subsidiary'' means, with respect to any Person, any
corporation, partnership or other entity of which at least a majority of the
securities or other ownership interests having by the terms thereof ordinary
voting power to elect a majority of the board of directors or other persons
performing similar functions of such corporation, partnership or other entity
(irrespective of whether or not at the time securities or other ownership
interests of any other class or classes of such corporation, partnership or
other entity shall have or might have voting power by reason of the happening of
any contingency) is at the time directly or indirectly owned or controlled by
such Person and/or one or more Subsidiaries of such Person.  Unless the context
clearly requires otherwise, all references to any Subsidiary shall mean a
Subsidiary of the Canadian Borrower.  All references to any Subsidiary of the
Canadian Borrower on or after the Effective Date shall include all those Persons
which became Subsidiaries of the Canadian Borrower upon consummation of the BRP
Acquisition and at any time thereafter.

''Succeeding Holdco'' has the meaning set forth in the
definition of ''Holdco''. 

''Surety Instruments'' means all letters of credit
(including standby and commercial), bankers' acceptances, bank guarantees,
surety bonds and similar instruments.

''Survey'' means a survey of any Mortgaged Real Property
(and all improvements thereon):  (i) prepared by a surveyor or engineer licensed
to perform surveys in the state, province or country where such Mortgaged Real
Property is located, (ii) dated (or redated) not earlier than six months prior
to the date of delivery thereof unless there shall have occurred within the six
months prior to such date (or such earlier date as shall be reasonably
acceptable to the Global Transaction Coordinator) of delivery any material
exterior construction on the site of such Mortgaged Real Property, in which
event such survey shall be dated (or redated) after the completion of such
construction or if such construction shall not have been completed as of such
date of delivery, not earlier than 20 days prior to such date of delivery,
(iii) certified by the surveyor (in a manner reasonably acceptable to the Global
Transaction Coordinator) to the Administrative Agent and the Title Company, and
(iv) in the case of each Mortgaged Real Property located in the United States,
complying in all material respects with the minimum detail requirements of the
American Land Title Association as such requirements are in effect on the date
of preparation of such survey; provided, however, that such survey
is in a form sufficient for the Title Company to remove all standard survey
exceptions from the title insurance policy (or commitment) and issue a 

- 44 -

survey and comprehensive endorsement with respect to such Mortgaged Real
Property and, in the case of each Mortgaged Real Property located outside of the
United States, in form and substance reasonably acceptable to the Global
Transaction Coordinator.

''Swingline Facilities'' means, collectively, the Canadian Swingline Facility and the U.S. Swingline
Facility, and ''Swingline Facility''
means any one of them.

''Swingline Facility Lenders'' means, collectively, the
Canadian Swingline Facility Lender and the U.S. Swingline Facility Lender, and
''Swingline
Facility Lender'' means any one of them.

''Synthetic Lease'' means, as to any Person, any lease or
similar arrangement (including leases that may be terminated by the lessee at
any time) of any Property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains ownership of the
Property so leased for any U.S., Canadian or other federal income tax purposes,
other than any such lease under which such Person is the lessor.

''Taking'' means a taking or voluntary conveyance
since the Effective Date of all or part of any Mortgaged Real Property, or any
interest therein or right accruing thereto or use thereof, as the result of, or
in settlement of, any condemnation, expropriation or other eminent domain
proceeding by any Governmental Authority affecting any Mortgaged Real Property
or any portion thereof, whether or not the same shall have actually been
commenced.

''Taxes'' means all present and future taxes, charges, fees,
levies, imposts and other assessments imposed by any Governmental Authority,
whether disputed or not, including, without limitations, all income, sales, use,
goods and services, value added, capital, capital gains, alternative, net worth,
transfer, profits, withholding, payroll, employer health, excise, real property
and personal property taxes, and any other taxes, customs duties, fees,
assessments or similar charges in the nature of a tax including Canada Pension
Plan and provincial pension plan contributions, unemployment insurance,
employment insurance payments and workers' compensation premiums, in each case
together with any installments or estimated payments with respect thereto, and
any interest, fines and penalties with respect thereto.

''Term Loan Maturity Date'' means January 31, 2011 or, if
such date is not a Business Day, the next succeeding Business Day.

''Test Date'' means for any financial maintenance covenant
set forth in Section 7.17, the last day of each Quarter of the Canadian Borrower
included in any period set forth in the table for such financial maintenance
covenant.

''Title Company'' means First American Title Insurance
Company or such other title insurance or abstract company as shall be designated
by the Administrative Agent.

''Total Debt'' means, at any date:

(a)

the aggregate amount of Indebtedness (excluding Loans and Letters
of Credit outstanding under the Revolving Facilities and excluding amounts
outstanding under other revolving lines of credit permitted under clauses (j)
and (n) of the definition of ''Permitted Indebtedness'') as reflected on the
balance sheet of the Consolidated Companies at such date determined on a
consolidated basis in conformity with GAAP, plus

- 45 -

                (b)

the sum (which shall not be less than zero) of (i)  the average
monthly balance of the Loans outstanding under the Revolving Facilities and
amounts outstanding under other revolving lines of credit permitted under
clauses (j) and (n) of the definition of ''Permitted Indebtedness'') during the
four Quarters most recently ended prior to such date, minus (ii) the
average monthly balance of unrestricted cash and Cash Equivalents of the
Consolidated Companies during the four Quarters most recently ended prior to
such date.

For dates for which the Quarter ended April 30, 2004 is the
Quarter most recently ended, amounts calculated under clause (b) shall be
measured over the Quarter ended April 30, 2004.  For dates for which the Quarter
ended July 31, 2004 or October 31, 2004 is the Quarter most recently ended,
amounts calculated under clause (b) shall be measured over the two Quarters
ended July 31, 2004.

''Total Leverage Ratio'' means, for any Test Date, the ratio
of (x) Total Debt (excluding any Pushdown Holdco Debt) at such Test Date to
(y) Consolidated EBITDA for the four Quarters ending on such Test Date.

''Total Pushdown Debt Leverage Ratio'' means, for any Test
Date, the ratio of (x) Total Debt (including Pushdown Holdco Debt, if any) at
such Test Date to (y) Consolidated EBITDA for the four Quarters ending on such
Test Date.

''Transaction Documents'' means the BRP Acquisition
Agreement, the documents giving effect to the Equity Financing, the Escrow
Agreement, all documents relating to the Senior Subordinated Notes, the
documents giving effect to the Preferred Stock Financing, this Agreement and the
other Credit Documents and in each case all documents related thereto and all
exhibits, appendices, schedules and annexes to any thereof.

''Transactions'' means, collectively, the BRP Acquisition,
the Equity Financing, the entering into and deposit of funds pursuant to the
Escrow Agreement, the Preferred Stock Financing, the offering of the Senior
Subordinated Notes and the entering into of this Agreement and the other Credit
Documents and the Extensions of Credit hereunder.

''Transferee'' has the meaning set forth in Section 3.17.

''Transition Costs'' means any severance, relocation,
restructuring and other acquisition or transaction-related costs incurred in
connection with or as a consequence of the BRP Acquisition during the fiscal
years ending January 31, 2004 and January 31, 2005, in an aggregate amount not
to exceed Cdn$15.0 million.

''UCC'' means the Uniform Commercial Code as in
effect in the State of New York provided, however, that if by
reason of mandatory provisions of law, any or all of the attachment, perfection
or priority of the Administrative Agent's and the Secured Parties' security
interest in any item or portion of the Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New York,
the term ''UCC'' shall mean the Uniform Commercial Code as in effect on the date
hereof in such other jurisdiction for purposes of the provisions hereof relating
to such attachment, perfection or priority and for purposes of definitions
relating to such provisions.

''UCP'' has the meaning set forth in Section 2.11(f).

''U.S. Base Rate'' means, at any time, the rate per annum
equal to the greater of (i) the Federal Funds Rate then in effect plus 100
basis points and (ii) the variable rate of interest per annum, expressed
on the basis of a 365- or 366-day year, as the case may be, established or
quoted from time to 

- 46 -

time by the Administrative Agent as the
corporate base rate of interest then in effect for determining interest rates on
U.S. Dollar-denominated commercial loans made by it in Canada, and referred to
by it as its ''U.S. corporate base rate.''  If for any reason the Administrative
Agent shall have determined (which determination shall be conclusive absent
manifest error) that it is unable after due inquiry to ascertain the Federal
Funds Rate for any reason, the U.S. Base Rate shall be determined by the
Administrative Agent without regard to clause (i) of the first sentence of this
definition until the circumstances giving rise to such inability no longer
exist.  The U.S. corporate base rate is not necessarily the lowest rate charged
by the Administrative Agent to its customers.

''U.S. Base Rate Loan'' means a Loan bearing interest
at a rate determined by reference to the U.S. Base Rate.

''U.S. Dollars'' and ''US$'' mean dollars in lawful
currency of the United States of America.

''U.S. Obligor'' means any Obligor incorporated under the
laws of the United States or any state thereof.

''U.S. Payment Branch'' has the meaning set forth in the
definition of ''Relevant Payment Branch.''

''U.S. Perfection Certificate'' means a certificate
substantially in the form of Exhibit L-2.

''U.S. Prime Rate'' means, at any time, the rate per
annum equal to the greater of (i) the Federal Funds Rate then in effect
plus 50 basis points and (ii) the variable rate of interest per 
annum, expressed on the basis of a 365- or 366-day year, as the case may be,
established or quoted from time to time by the Administrative Agent as the
reference rate of interest then in effect for determining interest rates on U.S.
Dollar-denominated commercial loans made by it in the United States of America,
and referred to by it as its ''U.S. prime rate.''  If for any reason the
Administrative Agent shall have determined (which determination shall be
conclusive absent manifest error) that it is unable after due inquiry to
ascertain the Federal Funds Rate for any reason, the U.S. Prime Rate shall be
determined by the Administrative Agent without regard to clause (i) of the first
sentence of this definition until the circumstances giving rise to such
inability no longer exist.  The prime rate is not necessarily the lowest rate
charged by the Administrative Agent to its customers.

''U.S. Prime Rate Loan'' means a Loan bearing
interest at a rate determined by reference to the U.S. Prime Rate.

''U.S. Revolving Borrower'' means BRP (USA) Inc. and
its successors and permitted assigns.

''U.S. Revolving Commitment'' means, for each U.S. Revolving
Lender, the amount identified as its U.S. Revolving Commitment (including,
without duplication, its U.S. Swingline Facility Commitment in respect of such
Facility, if any) on Schedule 1.1 or on the execution pages of the
Original Credit Agreement, or both, or in an Assignment Agreement executed and
delivered by such U.S. Revolving Lender, as such amount shall be reduced as a
result of any assignment made by such U.S. Revolving Lender in accordance with
the provisions of Section 11.3(b) or as a result of any permanent reduction in
the amount thereof pursuant to Sections 2.7, 2.8, 3.6, 3.7 and 3.8.

- 47 -

                               
''U.S. Revolving Committed Amount'' means, at any time, the
aggregate amount of the U.S. Revolving Commitments at such time; provided
that the aggregate amount of the U.S. Revolving Committed Amount shall not
exceed the US$ Equivalent Amount of Cdn$50.0 million or such lesser amount to
which such sum shall then have been permanently reduced pursuant to
Sections 2.7, 2.8, 3.6, 3.7 and 3.8.

''U.S. Revolving Facility'' means, at any time, that certain
revolving loan facility in the principal amount equal to the U.S. Revolving
Committed Amount from time to time established by the U.S. Revolving Lenders in favor of the U.S. Revolving Borrower pursuant to Section 2.1(a).

''U.S. Revolving Lenders'' means, collectively, each Person
identified as a ''U.S. Revolving Lender'' on Schedule 1.1 or on the
execution pages of the Original Credit Agreement, or both, each acting through
its lending office set forth in Schedule 1.1 or such other lending
office as such Person may specify in accordance with Section 11.1, and any
Person who becomes a U.S. Revolving Lender by way of assignment in accordance
with Section 11.3(b), together with such Person's successors and permitted
assigns (each, individually, a ''U.S. Revolving Lender'').

''U.S. Revolving Outstanding Amount'' has the meaning set
forth in Section 2.4(e)(ii).

''U.S. Revolving Unused Commitment'' means, at any time, the
amount by which (i) the then U.S. Revolving Committed Amount exceeds (ii) the
then U.S. Revolving Outstanding Amount.

''U.S. Securities Act'' means the U.S. Securities Act of
1933 and the rules and regulations promulgated thereunder as amended or replaced
from time to time.

''U.S. Security Agreement'' means a general security
agreement substantially in the form of Exhibit D-2 or such other form of
general security agreement or other instrument charging personal property as
Lead Arrangers' Counsel may approve.

''U.S. Security Documents'' has the meaning set forth
in Section 4.2(m)(i) of the Original Credit Agreement and shall also include the
documents identified in Section 4.3(g)(iii).

''U.S. Swingline Facility'' means, in respect of the U.S.
Revolving Facility, a separate short term revolving line of credit not greater
than the U.S. Swingline Maximum Amount (or the Equivalent Amount in U.S. Dollars
or Euros) provided to the U.S. Borrower by the U.S. Swingline Facility Lender,
which shall form part of such Lender's U.S. Revolving Commitment.

''U.S. Swingline Facility Commitment'' means the amount
identified as the U.S. Swingline Facility Commitment of the U.S. Swingline
Facility Lender in Schedule 1.1 or the execution pages of the Original
Credit Agreement, or both.

''U.S. Swingline Facility Lender'' initially means Royal
Bank of Canada (or any successor thereto), as maker of revolving Loans under the
U.S. Swingline Facility.

''U.S. Swingline Maximum Amount'' means, at any time, the
amount in U.S. Dollars specified on the execution page of the Original Credit
Agreement for the Swingline Facility Lender or on Schedule 1.1 or both.

''Utility Vehicle Segment'' means the portion of the
business of the Consolidated Companies relating to (i) the manufacturing,
selling, distributing, developing or marketing of specialized 

- 48 -

tracked vehicles for snow removal or
grooming and rough terrain transport equipment and (ii) the sale of related
parts and accessories and products under research and/or development.

''Wholly Owned Subsidiary'' means, with respect to any
Person, a Subsidiary of such Person all of the outstanding Equity Interests of
which (other than (x) director's qualifying shares, (y) shares issued to foreign
nationals to the extent required by applicable law and (z) Equity Interests
issued to a Person other than the Canadian Borrower or a Wholly Owned Subsidiary
of the Canadian Borrower in connection with a Permitted Receivables Facility for
the purpose of establishing independence and not in order to provide substantive
economic or controlling voting interests to such Person) shall at the time be
owned by such Person and/or by one or more Wholly Owned Subsidiaries of such
Person.

''Withdrawal Liability'' means liability to a Multiemployer
Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part 1 of Subtitle E of Title IV of ERISA.

''Working Capital'' means an amount determined for the
Consolidated Companies equal to the sum of all current assets (other than cash
and Cash Equivalents and current deferred tax assets) less the sum of all
current liabilities (other than the current portion of long-term Indebtedness
and current deferred tax liabilities).

1.2 
       
Computation of Time Periods and Other Definitional Provisions. 

For purposes of computation of periods of time hereunder, the
word ''from'' means ''from and including'' and the words ''to'' and ''until'' each mean
''to but excluding.''  References in this Agreement to any ''Article,'' ''Section'' or
''Schedule'' shall be to an Article, Section or Schedule of or to this Agreement
unless otherwise specifically provided.  Defined terms used herein shall include
in the singular number the plural and in the plural the singular.  Any reference
in this Agreement to ''include,'' ''includes'' and ''including'' shall be deemed to be
followed by the phrase ''without limitation.''  Any reference in this Agreement to
any particular gender shall include, where the context permits or requires, each
of the genders.  Any reference in this Agreement to ''herein,''
''hereunder,'' ''hereof,'' ''hereto'' or other similar expressions shall be construed as a
reference to this Agreement and (unless the context otherwise requires) not to
any particular Article, Section or Schedule of or to this Agreement.

For purposes of calculating amounts hereunder, amounts in
currencies other than Cdn$ or US$ shall be converted to the Equivalent Amount of
Cdn$ or US$, as applicable, to the extent required by the context.

1.3 
       
Accounting Terms. 

Except as otherwise expressly provided herein, all accounting
terms used herein shall be interpreted, and all financial statements and
certificates and reports as to financial matters required to be delivered to the
Lenders hereunder shall be prepared, in accordance with GAAP.  All calculations
made for the purposes of determining compliance with this Agreement shall
(except as otherwise expressly provided herein) be made in accordance with GAAP
applied on a basis consistent with the then most recent annual or quarterly
financial statements delivered pursuant to Section 6.1 (or, prior to the
delivery of the first financial statements pursuant to Section 6.1, consistent
with the financial statements delivered pursuant to Section 4.2(a)(vi) of the
Original Credit Agreement); provided, however, that if the
Canadian Borrower notifies the Administrative Agent that the Borrowers wish to
amend any covenant in Section 7.17 or any related definition to eliminate the
effect of any change in GAAP occurring after the Effective Date on the operation
of such covenant and if the Majority Lenders agree in writing (or if the
Administrative Agent notifies the Borrowers that the Majority Lenders wish to
amend Section 7.17 or any related definition 

- 49 -

for such purpose), then compliance with such covenant shall be determined on the
basis of GAAP in effect immediately before the relevant change in GAAP became
effective, until either such notice is withdrawn or such covenant is amended in
a manner satisfactory to the Borrowers and the Majority Lenders.

ARTICLE 2

CREDIT FACILITY

  2.1       
  Revolving Loan Commitments.

 

Subject to the terms and conditions set forth in this Agreement:

(a)

U.S. Revolving Commitment.  Each
U.S. Revolving Lender severally agrees to make revolving Loans in U.S. Dollars
available to and, in the case of the U.S. Swingline Facility Lenders, to make
revolving Loans under the U.S. Swingline Facility to, and in the case of the
Issuing Lender under the U.S. Revolving Facility, to issue Letters of Credit on
behalf of, the U.S. Revolving Borrower under the U.S. Revolving Facility at any
time and from time to time from the Closing Date to the date that is one
Business Day prior to the Revolving Loan Maturity Date in accordance with the
U.S. Revolving Commitment of each such U.S. Revolving Lender.

(b)

Canadian Revolving Commitment.  Each
Canadian Revolving Lender severally agrees to make revolving Loans in Canadian
Dollars, U.S. Dollars or Euros available to, and, in the case of the Canadian
Swingline Facility Lender, to make revolving Loans under the Canadian Swingline
Facility to, and in the case of the Issuing Lender under the Canadian Revolving
Facility, to issue Letters of Credit on behalf of, the Canadian Borrower under
the Canadian Revolving Facility at any time and from time to time from the
Closing Date to the date that is one Business Day prior to the Revolving Loan
Maturity Date in accordance with the Canadian Revolving Commitment of each such
Canadian Revolving Lender.

  2.2       
  Term Loan Commitments.

 

Subject to the terms and conditions set forth in this Agreement,
each New Term Lender severally agrees to make Loans in U.S. Dollars available to
the Canadian Borrower under the New Term Facility on the Amendment Effective
Date in accordance with the New Term Commitment of such New Term Lender.

  
  2.2A       Incremental Credit
  Extensions.

 

The Canadian Borrower may at any time or from time to time after
the Amendment Effective Date, by written notice to the Administrative Agent
(whereupon the Administrative Agent shall promptly deliver a copy to each of the
Lenders), request one or more additional tranches of U.S. Dollar-denominated
term loans (the ''Incremental Term Loans'') so long as both at the time of
any such request and upon the effectiveness of any Incremental Amendment
referred to below, no Default or Event of Default shall exist, and so long as at
the time that any such Incremental Term Loan is made (and after giving effect
thereto and to the application of proceeds thereof) no Default or Event of
Default shall exist and the Canadian Borrower shall be in compliance with
Section 7.17 on a pro forma basis on the last day of the most recently completed
Quarter as if such Incremental Term Loans had been outstanding on the last day
of such Quarter.  Each tranche of Incremental Term Loans shall be in an
aggregate principal amount of not less than US$5,000,000.  Notwithstanding
anything to the contrary herein, the aggregate amount of the Incremental Term
Loans shall not exceed US$100,000,000.  The Incremental Term Loans 

- 50 -

                (a)

shall rank pari passu in right of payment with, and shall
benefit equally and ratably with respect to Guarantees and security with the
Loans under, the New Term Facility, 

(b)

shall not mature earlier than the Term Loan Maturity Date (but
may have nominal amortization prior to such date so long as the weighted average
life to maturity of the Incremental Term Loans is no shorter than the weighted
average life to maturity of the then-remaining Loans under the New Term
Facility),

(c)

except as set forth in clauses (a), (b) and (d), shall have terms
and conditions substantially the same as (and in any event no more favorable
than) those applicable to the Loans under the New Term Facility (in each case,
including with respect to sharing of mandatory and voluntary prepayments), and

(d)

shall not provide for any repayments pursuant to Section 3.7 in
excess of 25% of the initial aggregate principal amount thereof prior to the
first day after the fifth anniversary of the incurrence thereof.

Notwithstanding clauses (a), (b) and (c) above, (i) the terms and
conditions applicable to Incremental Term Loans maturing after the Term Loan
Maturity Date may provide for material additional or different financial or
other covenants or prepayment requirements applicable only during periods after
the Term Loan Maturity Date and (ii) if the interest rate for the Incremental
Term Loans shall at any time be higher than the then-applicable interest rate
with respect to the Loans under the New Term Facility plus 25 basis points, then
the Applicable Margin with respect to the Loans under the New Term Facility
shall automatically increase (without any further action required to be taken by
any party) to result in an interest rate applicable to the Loans under the New
Term Facility no lower than the interest rate then applicable to the Incremental
Term Loans minus 25 basis points.

Each notice from the Canadian Borrower pursuant to this Section
2.2A shall set forth the requested amount and proposed terms of the relevant
Incremental Term Loans.  Incremental Term Loans may be made by any existing
Lender (and each existing New Term Lender shall have the right to make a portion
of any Incremental Term Loan on terms permitted in this Section 2.2A and
otherwise on terms reasonably acceptable to the Administrative Agent); 
provided that the Administrative Agent shall have consented (such consent
not to be unreasonably withheld, delayed or conditioned) to such Lender's making
such Incremental Term Loans if such consent would be required under Section 11.3
for an assignment of Loans to such Lender.  Each existing Lender shall, by
notice to the Canadian Borrower and the Administrative Agent given not later
than ten days after the date of the Administrative Agent's notice delivered
pursuant to the first sentence of this Section 2.2A, either agree to make a
portion of any Incremental Term Loan or decline to do so (and any existing
Lender that does not deliver such notice within such period of ten days shall be
deemed to have declined to do so).  In the event that on the tenth day after the
Administrative Agent shall have delivered the notice pursuant to the first
sentence of this Section 2.2A the existing Lenders shall have agreed pursuant to
the preceding sentence to make Incremental Term Loans in an aggregate amount
that is less than the amount requested by the Canadian Borrower, the Incremental
Term Loans may be made by any other Eligible Person (any such other Eligible
Person being called an ''Additional Lender'') so long as the
Administrative Agent shall have consented (such consent not to be unreasonably
withheld, delayed or conditioned) to such Additional Lender's making such
Incremental Term Loans if such consent would be required under Section 11.3 for
an assignment of Loans to such Additional Lender.  Commitments in respect of
Incremental Term Loans shall become Commitments under this Agreement pursuant to
an amendment (an ''Incremental Amendment'') to this Agreement and, as appropriate, the other
Credit Documents, executed by Holdco, the Canadian Borrower, each Guarantor,
each Lender agreeing to provide such Commitment, if any, each Additional Lender,
if any, and the Administrative Agent.  The Incremental Amendment may, without
the consent of any other Lender, effect 

- 51 -

such amendments to this Agreement and the other Credit Documents as may be
necessary or appropriate, in the reasonable opinion of the Administrative Agent,
to effect the provisions of this Section 2.2A (including changes to the
provisions of this Section 2.2A and the definition of ''Majority Lenders'').  In
no event shall any such agreement (i) effect any change described in clauses (a)
through (i) of Section 11.6 without the consent of each person required to
consent to such change under such clause (it being agreed, however, that any
Incremental Term Loans or the establishment of any Class of Term Loans will not,
of itself, be deemed to effect any of the changes described in clauses (f) and
(g) of Section 11.6), (ii) amend this Agreement to establish any affirmative or
negative covenant, Event of Default or remedy that by its terms benefits one or
more Facilities, but not all Facilities, of Loans without the prior written
consent of Lenders holding a majority in interest of the Loans and Commitments
of each Facility not so benefited or (iii) change any other provision of this
Agreement or any other Credit Document that creates rights in favor of Lenders
holding Loans or Commitments of any existing Facility, other than as necessary
or advisable in the judgment of the Administrative Agent to cause such provision
to take into account, or to make the benefits of such provisions available to,
Lenders holding Incremental Term Loans in accordance with the terms set forth
herein.  The effectiveness of any Incremental Amendment shall be subject to the
satisfaction on the date thereof (each, an ''Incremental Facility Closing Date'')
of each of the conditions set forth in Section 4.3B (it being understood that
all references to ''the date of such Extension of Credit'' or similar language in
such Section 4.3B shall be deemed to refer to the closing date of such
Incremental Amendment) and such other conditions as the parties thereto shall
agree.  Subject to the minimum principal amount requirements specified above in
this Section 2.2A, no more than five Incremental Facility Closing Dates may be
selected by the Canadian Borrower.  The Canadian Borrower shall use the proceeds
of the Incremental Term Loans for any purpose not prohibited by this Agreement.
 No Lender shall be obligated to provide any Incremental Term Loans unless it so
agrees.

  2.3       
  Availability.

 

(a)

U.S. Revolving Facility.  The U.S.
Revolving Facility shall be available to the U.S. Revolving Borrower from the
U.S. Revolving Lenders as follows:

(i)

by way of Loans each in a minimum amount of the lesser of
(A) US$1.0 million and (B) the amount then remaining under the U.S. Revolving
Committed Amount and (if applicable) in integral multiples of US$250,000 in
excess thereof, in U.S. Dollars by way of U.S. Prime Rate Loans;

(ii)

by way of Loans each in a minimum amount of the lesser of
(A) US$2.5 million and (B) the amount then remaining under the U.S. Revolving
Committed Amount and (if applicable) in integral multiples of US$500,000 in
excess thereof, in U.S. Dollars by way of LIBOR Loans;

(iii)

by way of Letters of Credit issued by the relevant Issuing Lender
under the U.S. Revolving Commitment in accordance with Section 2.11; and 

(iv)

by way of Loans from the U.S. Swingline Facility Lender under the
U.S. Swingline Facility in accordance with Section 2.12.

(b)

Canadian Revolving Facility.  The
Canadian Revolving Facility shall be available to the Canadian Borrower from the
Canadian Revolving Lenders as follows:

(i)

by way of Loans each in a minimum amount of the lesser of
(A) Cdn$1.0 million and (B) the amount then remaining under the Canadian
Revolving Committed Amount and (if 

- 52 -

    applicable) in integral
  multiples of Cdn$250,000 in excess thereof in Canadian Dollars by way of
  Canadian Prime Rate Loans;

(ii)

by way of Loans in a minimum amount of the lesser of (A) Cdn$2.5
million and (B) the amount then remaining under the Canadian Revolving Committed
Amount and (if applicable) in integral multiples of Cdn$500,000 in excess
thereof in Canadian Dollars by way of Bankers' Acceptance Loans;

(iii)

by way of Loans each in a minimum amount of the lesser of US$2.5
million and the U.S. Dollar Equivalent Amount then remaining under the Canadian
Revolving Committed Amount and (if applicable) in integral multiples of
US$500,000 in excess thereof in U.S. Dollars by way of LIBOR Loans and by way of
Loans in a minimum amount of US$1.0 million and the U.S. Dollar Equivalent
Amount then remaining under the Canadian Revolving Committed Amount and (if
applicable) in integral multiples of US$250,000 in excess thereof in U.S.
Dollars by way of U.S. Base Rate Loans;

(iv)

by way of Loans each in a minimum amount of the lesser of €2.5
million and the Euro Equivalent Amount then remaining under the Canadian
Revolving Committed Amount and (if applicable) in integral multiples of €500,000
in excess thereof in Euros by way of EUROLIBOR Loans;

(v)

by way of Letters of Credit issued by the relevant Issuing Lender
under the Canadian Revolving Commitment in accordance with Section 2.11; and

(vi)

by way of Loans from the Canadian Swingline Facility Lender under
the Canadian Swingline Facility in accordance with Section 2.12.

(c)

New Term Facility.  The New Term
Facility shall be available to the Canadian Borrower from the New Term Lenders
by way of Loans in an amount up to the New Term Committed Amount in U.S. Dollars
by way of U.S. Prime Rate Loans (or U.S. Base Rate Loans for any Canadian Lender
whose lending office is located in Canada) or LIBOR Loans.

  2.4       
  Method of Borrowing.

 

(a)

Each Extension of Credit may be requested by an irrevocable
Notice of Borrowing, executed by the Borrower requesting such Extension of
Credit and delivered to the Administrative Agent within the time limits
specified in Section 2.4(b), setting forth (i) the type of Loan requested,
(ii) the amount requested, (iii) with respect to Loans that will be LIBOR Loans,
EUROLIBOR Loans or Bankers' Acceptance Loans, the Interest Period applicable
thereto, (iv) whether such Loan will be denominated in Canadian Dollars, U.S.
Dollars or Euros and (v) a certification that the Relevant Borrower has complied
in all respects with the applicable provisions of Article 4.  Alternatively, an
Extension of Credit may be requested verbally by the applicable Borrower to the
Administrative Agent within such time limits so long as such verbal notice is
followed by delivery of the irrevocable Notice of Borrowing as described in the
preceding sentence on the same Business Day at or before 3:00 p.m. (New York
City time).

(b)

Each Notice of Borrowing (other than an Extension of Credit under
a Swingline Facility) shall be delivered not later than (i) 11:00 a.m. (New York
City time) on the Business Day immediately prior to the relevant Extension Date
in the case of any U.S. Prime Rate Loan, U.S. Base Rate Loan or Canadian Prime
Rate Loan, in respect of any such Loan in an amount equal to or less than
US$25.0 million (in the case of any U.S. Prime Rate Loan or U.S. Base Rate
Loan), or Cdn$25.0 million (in the 

- 53 -

case of any Canadian Prime Rate Loan)
or two (2) Business Days prior to such Extension Date for any such Loan in
excess of any such amount or in the case of Bankers' Acceptance Loans and
(ii) 11:00 a.m. (New York City time) on the third Business Day prior to the
relevant Extension Date in the case of any LIBOR Loan or EUROLIBOR Loan.

(c)

The Canadian Revolving Facility and U.S. Revolving Facility shall
each be a revolving credit facility, and the Canadian Borrower and the U.S.
Revolving Borrower may borrow, repay and reborrow under the Relevant Facility,
as applicable, subject to the terms of this Agreement, at any time prior to the
first Business Day prior to the Revolving Loan Maturity Date, the Canadian
Borrower shall have the right to convert Loans under the Canadian Revolving
Facility from one currency to another, subject to the terms of this Agreement,
including Section 3.2(e).  Each Revolving Facility shall terminate on the
Revolving Loan Maturity Date.

(d)

The New Term Facility shall be a non-revolving credit facility,
and the Canadian Borrower may borrow under the New Term Facility only on the
Amendment Effective Date.  Once amounts outstanding under the New Term Facility
are repaid, whether pursuant to mandatory repayments or voluntary prepayments
made under this Agreement or otherwise, they may not be reborrowed.  The New
Term Facility shall terminate on the Term Loan Maturity Date.

(e)

A Borrower shall not be entitled to or receive an Extension of
Credit under the Relevant Facility if:

(i)

in the case of the Canadian Revolving Facility and subject to the
last sentence of this clause (e), the sum of (A) the aggregate principal amount
of all Canadian Prime Rate Loans, the aggregate Face Amount of all Bankers'
Acceptance Loans, all L/C Obligations thereunder, and amounts outstanding under
the Canadian Swingline Facility, plus (B) the Equivalent Amount expressed
in Canadian Dollars of the aggregate principal amount of all U.S. Base Rate
Loans, U.S. Prime Rate Loans, LIBOR Loans and EUROLIBOR Loans then outstanding
under the Canadian Revolving Facility (collectively, the ''Canadian Revolving
Outstanding Amount''), plus (C) the aggregate principal amount of
Indebtedness outstanding pursuant to clause (n) of the definition of ''Permitted
Indebtedness'' plus (D) the amount of the Extension of Credit requested or
intended to be requested by the Canadian Borrower pursuant to the applicable
Notice of Borrowing, would exceed the Canadian Revolving Committed Amount;

(ii)

in the case of the U.S. Revolving Facility and subject to the
last sentence of this clause (e), the sum of (A) the aggregate principal amount
of all U.S. Prime Rate Loans, U.S. Base Rate Loans and all LIBOR Loans, all L/C
Obligations thereunder, and amounts outstanding under the U.S. Swingline
Facility (collectively, the ''U.S. Revolving Outstanding Amount''), plus
(B) the amount of the Extension of Credit requested or intended to be requested
by the U.S. Revolving Borrower pursuant to the applicable Notice of Borrowing,
would exceed the U.S. Revolving Committed Amount; and

(iii)

in the case of the New Term Facility, the aggregate principal
amount of the Extension of Credit requested or intended to be requested by such
Borrower pursuant to the applicable Notice of Borrowing would exceed the New
Term Committed Amount.

For purposes of clauses (i) and (ii) above, any amount
temporarily prepaid pursuant to Section 3.8(a)(iii) or 3.8(b)(iii) and any
reborrowing for reinvestment or for a Disposition Event Offer or Casualty Event
Offer in accordance with Section 3.8(a) or 3.8(b), as applicable, shall be
disregarded.

- 54 -

  2.5       
  Funding of Loans.

 

(a)

Upon receipt of a Notice of Borrowing, the Administrative Agent
shall promptly (and in any event prior to 1:00 pm (New York City time) on the
date such Notice of Borrowing is received by the Administrative Agent) inform
the Relevant Lenders as to the terms thereof.  Each Relevant Lender shall make
its Commitment Percentage of the requested Loan available to the Administrative
Agent by 12:00 noon (New York City time) on the Extension Date specified in the
Notice of Borrowing by deposit in the relevant currency of immediately available
funds to the Relevant Payment Account.  The amount of the requested Loan shall
then be made available to the Relevant Borrower by the Administrative Agent
(subject to the other terms and conditions of this Agreement) by crediting the
Relevant Borrower's Account to the extent the amount of such Loan is made
available to the Administrative Agent.

(b)

No Lender shall be responsible for the failure or delay by any
other Lender in its obligation to make Loans hereunder, and the failure of any
Lender to fulfill its obligations hereunder shall not relieve any other Lender
of its obligations hereunder.  Unless the Administrative Agent shall have been
notified by any Relevant Lender prior to the Extension Date of any such Loan
that such Lender does not intend to make available to the Administrative Agent
its Commitment Percentage of the Loan to be made on such date, the
Administrative Agent may assume that such Lender has made such amount available
to the Administrative Agent on the Extension Date of such Loan, and the
Administrative Agent, in reliance upon such assumption, may (in its sole
discretion but without any obligation to do so) make available to the Relevant
Borrower a corresponding amount.  If such corresponding amount is not in fact
made available to the Administrative Agent by any Relevant Lender, the
Administrative Agent shall be entitled to recover such corresponding amount from
such Relevant Lender.  If such Relevant Lender does not pay such corresponding
amount promptly upon the Administrative Agent's demand therefor, the
Administrative Agent shall promptly notify the Relevant Borrower, and the
Relevant Borrower shall immediately repay such corresponding amount to the
Administrative Agent.  The Administrative Agent shall also be entitled to
recover from the Defaulting Lender or the Relevant Borrower, as the case may be,
interest on such corresponding amount in respect of each day from the date such
corresponding amount was made available by the Administrative Agent to the
Relevant Borrower to the date such corresponding amount is recovered by the
Administrative Agent at a rate equal to (a) from the Relevant Borrower, the rate
applicable to such Loan pursuant to the Notice of Borrowing, or (b) from the
Defaulting Lender at (i) in the case of any U.S. Dollar obligation, the Federal
Funds Rate plus 100 basis points for the period to and including the second
Business Day from the commencement of such first mentioned period and thereafter
the U.S. Prime Rate plus 1.0% or the U.S. Base Rate plus 1.0%, as applicable,
(ii) in the case of any Canadian Dollar obligation, the Bank of Canada Overnight
Rate plus 100 basis points for the period to and including the second Business
Day following the commencement of such period and, thereafter at the Canadian
Prime Rate plus 1.0%, and (iii) in the case of any EUROLIBOR Loan, the Interest
Rate applicable to such Loan plus 1.0%, and in each case otherwise in accordance
with Section 3.11.

  2.6       
  Bankers' Acceptances.

 

(a)

Funding of Bankers' Acceptances.  If
the Administrative Agent receives a Notice of Borrowing or a Notice of
Continuation/Conversion requesting a Loan by way of, or a continuation of a Loan
under the Canadian Revolving Facility, as or a conversion of a Loan into, a
Bankers' Acceptance Loan, the Administrative Agent shall notify each of the
Canadian Revolving Lenders prior to 4:00 p.m. (New York City time) on the
Business Day of receipt of such Notice of Borrowing or Notice of
Continuation/Conversion, as the case may be, of such receipt and of each
Canadian Revolving Lender's Commitment Percentage of such requested Bankers'
Acceptance Loan, except that, if the Face Amount of a Bankers' Acceptance which
would otherwise be accepted by or an Acceptance Note which would otherwise be
issued in favor of a Relevant Lender would not be Cdn$100,000 or an integral
multiple thereof, such Face Amount shall be increased or decreased by the
Administrative Agent in its sole discretion to 

- 55 -

the nearest integral multiple of
Cdn$100,000.  Subject to the terms of Section 2.4, this Section 2.6 and
Article 4, each Relevant Lender shall, not later than 12:00 noon (New York City
time) on the requested Extension Date of such Loan, accept and purchase Bankers'
Acceptances drawn by the Canadian Borrower which are presented to it for
acceptance, or accept and purchase Acceptance Notes made by such Borrower in
favor of such Lender, which have an aggregate Face Amount equal to such Lender's
Commitment Percentage of the total Face Amount of Bankers' Acceptance Loan on
such date.  With respect to each Bankers' Acceptance Loan (including any
continuation as, or conversion into, a Bankers' Acceptance Loan), each Relevant
Lender shall not be required to accept and purchase any Bankers' Acceptance or
accept and purchase any Acceptance Note which has a Face Amount which is not an
integral multiple of Cdn$100,000.  Concurrent with the acceptance and purchase
of a Bankers' Acceptance drawn, or Acceptance Note purchased, as aforesaid, each
Relevant Lender shall make available, subject to Section 2.6(b), to the
Administrative Agent the BA Discount Proceeds with respect to such Bankers'
Acceptance or Acceptance Note.  The Administrative Agent shall, subject to
fulfillment by the Relevant Borrower of the conditions set out in Article 4 and
subject to Section 2.6(b), make such BA Discount Proceeds available to the
Relevant Borrower on the Extension Date of such Loan by crediting the Relevant
Borrower's Account.

(b)

Acceptance Fees.  With respect to
each Bankers' Acceptance or Acceptance Note of the Canadian Borrower accepted
pursuant hereto, the Canadian Borrower shall pay, in advance, an acceptance fee
calculated by multiplying the Applicable Margin in respect of such Bankers'
Acceptance Loan by the Face Amount of such Bankers' Acceptance or the principal
amount of such Acceptance Note, as the case may be, and multiplying the product
thereby obtained by a fraction, the numerator of which is the number of days in
the Interest Period of such Bankers' Acceptance Loan and the denominator of
which is 365.  Such acceptance fees shall be non-refundable and shall be fully
earned upon such acceptance and purchase by the Relevant Lender of such Bankers'
Acceptance or Acceptance Note, as the case may be.  Such acceptance fees shall
be paid by the Canadian Borrower by means of the Relevant Lender deducting the
amount thereof from the BA Discount Proceeds payable to the Canadian Borrower by
such Lender upon such acceptance and purchase.

(c)

Safekeeping of Drafts.  The Relevant
Lenders agree that, in respect of the safekeeping of executed drafts or
depository bills which are delivered to them for acceptance hereunder, they
shall exercise the same degree of care which the Relevant Lenders give to their
own property; provided that the Relevant Lenders shall not be deemed to
be insurers thereof.  To facilitate the drawing of drafts or depository bills by
the Canadian Borrower for acceptance as Bankers' Acceptances hereunder, and the
making by the Canadian Borrower of Acceptance Notes for acceptance by the
Relevant Lenders hereunder, the Canadian Borrower hereby irrevocably appoints
the proper officers of each Relevant Lender as its lawful attorneys-in-fact to
complete, execute and deliver all such drafts and depository bills and
Acceptance Notes on behalf and in the name of the Canadian Borrower, and any
such draft or Acceptance Note so completed, executed and delivered on behalf and
in the name of the Canadian Borrower by any such officer or officers of any
Relevant Lender shall be valid, binding and enforceable against the Canadian
Borrower to the same extent as if such draft, depository bill or Acceptance Note
was executed and delivered by the proper officers of such Relevant Lender in its
name and on its behalf.  Bankers' Acceptances accepted under this Agreement
shall be in the form provided by the Relevant Lender or Relevant Lenders
accepting such Bankers' Acceptances.  The Canadian Borrower recognizes and
agrees that all Bankers' Acceptances signed and/or endorsed by a Relevant Lender
on behalf of the Canadian Borrower shall bind the Canadian Borrower as fully and
effectually as if signed in the handwriting of and duly issued by the proper
signing officers of the Canadian Borrower.  Each Relevant Lender is hereby
authorized (in accordance with a Notice of Borrowing relating to a Bankers'
Acceptance Loan) to issue such Bankers' Acceptances endorsed in blank in such
face amounts as may be determined by such Relevant Lender; provided that
the aggregate amount thereof is equal to the aggregate amount of Bankers'
Acceptances required to be accepted and purchased by such Relevant Lender.  No
Relevant Lender shall be liable 

- 56 -

for any damage, loss or other claim arising by reason of any loss or improper
use of any such instrument except the gross negligence or willful misconduct of
the Relevant Lender or its officers, employees, agents or representatives.  Each
Relevant Lender shall maintain a record with respect to Bankers' Acceptances (i) received
by it in blank hereunder, (ii) voided by it for any reason, (iii) accepted and
purchased by it hereunder, and (iv) cancelled at their respective maturities.
 On request by or on behalf of the Canadian Borrower, a Relevant Lender shall
cancel all forms of Bankers' Acceptances which have been pre-signed or
pre-endorsed on behalf of the Canadian Borrower and which are held by such
Relevant Lender and are not required to be issued in accordance with the
Canadian Borrower's irrevocable notice.  Alternatively, the Canadian Borrower
agrees that, at the request of the Administrative Agent, the Canadian Borrower
shall deliver to the Administrative Agent a ''depository note'' which complies
with the requirements of the Depository Bills and Notes Act (Canada), and
consents to the deposit of any such depository note in the book-based debt
clearance system maintained by the Canadian Depository for Securities Limited.

(d)

Execution of Drafts.  Drafts of the
Canadian Borrower to be accepted as Bankers' Acceptances hereunder shall be
signed as set forth in this Section 2.6.  Notwithstanding that any person whose
signature appears on any Bankers' Acceptance may no longer be an authorized
signatory for any Relevant Lender or the Canadian Borrower at the date of
issuance of a Bankers' Acceptance, such signature shall nevertheless be valid
and sufficient for all purposes as if such authority had remained in force at
the time of such issuance and any such Bankers' Acceptance so signed shall be
binding on the Canadian Borrower.

(e)

Sale of Bankers' Acceptances.  Each
Relevant Lender may at any time and from time to time hold, sell, rediscount or
otherwise dispose of any or all Bankers' Acceptances accepted and purchased by
it.

(f)

Payment on Maturity.  The Canadian
Borrower shall pay to the Administrative Agent, for the account of the Relevant
Lenders, on the last day of the Interest Period of any maturing Bankers'
Acceptance or Acceptance Note, an amount equal to the Face Amount of such
maturing Bankers' Acceptance or Acceptance Note, as the case may be; provided
that, subject to Sections 2.10 and 4.3B, the Canadian Borrower may, at its
option, so pay the Relevant Lenders, in whole or in part, by delivering to the
Administrative Agent no later than the time and Business Day specified in
Section 3.6 prior to the last day of the Interest Period of such maturing
Bankers' Acceptance or Acceptance Note, as the case may be, a Notice of
Continuation/Conversion specifying the next Interest Period of the Bankers'
Acceptance and/or Acceptance Note to be accepted and purchased by the Relevant
Lenders in accordance with the provisions hereof, and presenting or causing to
be presented a draft, depository bill or Acceptance Note to the Relevant Lenders
for acceptance and purchase having, in the case of reimbursement in whole by
replacement Bankers' Acceptances or Acceptance Note, an aggregate Face Amount at
least equal to the aggregate Face Amount of the maturing Bankers' Acceptance
and/or Acceptance Note, together with such amount as is required to repay the
maturing Bankers' Acceptance or Acceptance Note in full.  In the event that the
Canadian Borrower fails to so deliver a Notice of Continuation/Conversion and
fails to make payment to the Administrative Agent on the relevant maturity date
in respect of the maturing Bankers' Acceptance Loan, the sum of the aggregate
Face Amount of the maturing Bankers' Acceptances and Acceptance Notes comprising
such maturing Bankers' Acceptance Loan shall be deemed to be converted to a
Canadian Prime Rate Loan on the relevant maturity date and shall thereafter bear
interest as such.

(g)

Waiver of Defenses and Days of Grace.
 The Canadian Borrower waives presentment for payment and any other defense to
payment of any amounts due to a Relevant Lender in respect of a Bankers'
Acceptance accepted and purchased by it pursuant to this Agreement which might
exist solely by reason of such Bankers' Acceptance being held, at the maturity
thereof, by such Relevant Lender in its own right, and the Canadian Borrower
agrees not to claim any days of grace if such Relevant 

- 57 -

Lender, as holder, sues the Canadian
Borrower on the Bankers' Acceptance for payment of the amount payable by the
Canadian Borrower thereunder.

(h)

Participations.  If a Relevant
Lender grants a participation in a portion of its rights under this Agreement to
a Participant under Section 11.3(c), then, in respect of any Bankers' Acceptance
Loan, a portion thereof may, at the option of such Relevant Lender, be by way of
Bankers' Acceptance accepted by such participant.  In such event, the Canadian
Borrower shall, upon the request of the Administrative Agent or the Relevant
Lender granting the participation, execute and deliver a form of Bankers'
Acceptance undertaking in favor of such participant for delivery to such
participant.

(i)

Cash Collateral.  If any Event of
Default shall occur and be continuing, on the Business Day that the Relevant
Borrower receives notice from the Administrative Agent or the Majority Lenders
demanding the deposit of cash collateral pursuant to this Section 2.6, the
Relevant Borrower shall deposit in the relevant Collateral Account of such
Borrower an amount in cash equal to the face amount of all Bankers' Acceptance
Notes then outstanding; provided that the obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become
immediately due and payable, without demand or other notice of any kind, upon
the occurrence of any Event of Default with respect to the Relevant Borrower
described in Sections 8.1(f)(ii) and 8.1(f)(iii).  Such deposit shall be held by
the Administrative Agent as collateral for the payment and performance of the
obligations of the Relevant Borrower in respect of outstanding Bankers'
Acceptance Loans under this Agreement.  Moneys deposited in the Collateral
Account pursuant to this Section 2.6(i) shall be applied by the Administrative
Agent to reimburse the Relevant Lenders for payments made under Bankers'
Acceptances for which they have not been reimbursed and, to the extent not so
applied, if the maturity of the Loans has been accelerated (but subject to the
consent of the Majority Lenders), be applied to satisfy other obligations of the
Relevant Borrower under this Agreement.  If the Relevant Borrower is required to
provide an amount of cash collateral hereunder as a result of the occurrence of
an Event of Default, such amount (to the extent not applied as aforesaid) shall
be returned to the Relevant Borrower within three Business Days after all Events
of Default have been cured or waived.

(j)

Special Provisions Relating to Acceptance Notes.

(i)

The Canadian Borrower and each Relevant Lender hereby
acknowledges and agrees that certain Relevant Lenders may not be able to or may,
as a matter of general corporate policy, elect not to accept drafts or
depository bills as a Bankers' Acceptance, and the Canadian Borrower and each
such Relevant Lender agree that any such Relevant Lender shall, in lieu thereof,
accept and purchase Acceptance Notes of the Canadian Borrower in accordance with
the provisions of this Section 2.6.

(ii)

In the event that any Relevant Lender referred to in
Section 2.6(f) is unable to, or elects as a matter of general corporate policy
not to, accept Bankers' Acceptances hereunder, such Relevant Lender shall not be
required to accept such drafts or depository bills hereunder, but rather, if the
Canadian Borrower requests the acceptance and purchase of Bankers' Acceptances,
the Canadian Borrower shall deliver to such Relevant Lender one or more
non-interest bearing promissory notes (each, an ''Acceptance Note'') made
by the Canadian Borrower in favor of such Relevant Lender or to bearer in the
form customarily used by such Relevant Lender for such purposes, in an aggregate
principal amount equal to the Face Amount of such drafts or depository bills and
having the same maturity as the drafts or depository bills to be accepted as
Bankers' Acceptances.  The Relevant Lender shall accept and purchase such
Acceptance Notes from the Canadian Borrower at a purchase price equal to the BA
Discount Proceeds which would have been applicable if a draft or depository bill
in such amount and for the same Interest Period had been accepted and purchased
by it as a Bankers' Acceptance hereunder, and such Acceptance Notes shall be
governed by the provisions of this Section 2.6 in the same manner as if they
were Bankers' Acceptances.  The Canadian Borrower hereby irrevocably appoints
the proper officers of each 

- 58 -

  Relevant Lender as its lawful
  attorneys-in-fact to execute and deliver all Acceptance Notes on behalf and in
  the name of the Canadian Borrower, and any such Acceptance Note so executed
  and delivered on behalf and in the name of the Canadian Borrower by any such
  officer or officers of any Relevant Lender shall be valid, binding and
  enforceable against the Canadian Borrower to the same extent as if such
  Acceptance Note was executed and delivered by the proper officers of such
  Relevant Lender in its name and on its behalf.  The Canadian Borrower
  recognizes and agrees that all Acceptance Notes signed and/or endorsed by a
  Relevant Lender on behalf of the Canadian Borrower shall bind the Canadian
  Borrower as fully and effectually as if signed in the handwriting of and duly
  issued by the proper signing officers of the Canadian Borrower.

(k)

No Market.  If the Administrative
Agent determines in good faith and acting reasonably and gives notice to the
Relevant Lenders and the Canadian Borrower that, by reason of circumstances
affecting the Canadian money market, there is no market for Bankers'
Acceptances, then the right of the Canadian Borrower to request Bankers'
Acceptance Loans shall be suspended until the Administrative Agent, acting
reasonably and in good faith, determines that the circumstances causing such
suspension no longer exist and the Administrative Agent so notifies the Canadian
Borrower and the Relevant Lender.  In such circumstances, any Notice of
Borrowing requesting a Bankers' Acceptance Loan which is then outstanding shall
be cancelled and the Extension of Credit requested therein shall, at the option
of the Canadian Borrower exercisable by further notice to the Administrative
Agent, either not be made or be made (subject to the notice requirements in
Section 2.4) as a Canadian Prime Rate Loan.

  2.7       
  Voluntary Reductions of Committed Amount.

 

Any Borrower may at any time, upon giving at least five (5)
Business Days' prior written notice to the Administrative Agent, cancel in full
or, from time to time, in part, any undrawn portion of any Revolving Facility
and thereby automatically reduce and permanently terminate the Commitment of
each of the Relevant Lenders in an amount equal to such Lender's Commitment
Percentage of the undrawn portion of the Relevant Facility so cancelled by the
Relevant Borrower; provided, however, that:

(a)

any such cancellation in respect of any Facility shall be in a
minimum amount of Cdn$1.0 million (or if less, the amount then outstanding) and
integral multiples of Cdn$1.0 million in excess thereof (or the U.S. Dollar
Equivalent Amount, expressed in U.S. Dollars, of such amounts; and

(b)

any such notice, once given, shall be irrevocable except as the
Relevant Lenders may in their discretion otherwise agree.

The Administrative Agent shall immediately notify the Relevant
Lenders of any such termination of all or any portion of their respective
Commitments in respect of any Facility.

  2.8       
  Mandatory Cancellation or Reductions in Committed Amount.

 

All Loans under the New Term Facility shall be made on the
Amendment Effective Date, after which time all undrawn availability under the
New Term Facility shall be automatically cancelled without the necessity of any
further action by any of the parties to this Agreement.

  2.9       
  Notes and Loan Accounts.

 

(a)

The Loans made by each Lender shall, at the request of such
Lender, be evidenced by a duly executed Note.  Alternatively or in addition
thereto, each Lender may, in accordance with its usual practice, maintain an
account or accounts in respect of Loans made by it pursuant to its 

- 59 -

Commitment in respect of any Facility.
 Any entries made by such Lender on the back of any Note or on any grid appended
thereto and any entries made by any such Lender in maintenance of any such
account, with respect to the principal amount of any Loan made by such Lender,
any interest accrued thereon and any payments made by the Relevant Borrower in
respect of the outstanding principal amount of any such Loan or any interest
accrued thereon shall, to the extent not inconsistent with the notations made by
the Administrative Agent in the Register and absent manifest error, constitute
conclusive evidence of the amount of the Indebtedness, at any particular time
and from time to time, owing by the Relevant Borrower to such Lender in respect
of the Relevant Facility.  Notwithstanding the foregoing, the failure by any
Lender to obtain any such Note from any Borrower or to maintain any such account
or to make any such entries thereon or therein shall not limit or prejudice any
claim by such Lender against any such Borrower in respect of such Borrower's
Indebtedness to such Lender hereunder.

(b)

The Administrative Agent, on behalf of each Borrower, shall
maintain at its address referred to in Section 11.1, a copy of each Assignment
Agreement delivered to it and a register (the ''Register'') for the
recordation of the names and addresses of the Lenders and the Commitment of, and
the principal amount of and interest on the Loan owing to, and the Notes
evidencing such Loans owned by, each Lender from time to time.  Failure to make
any recordation, or any error in such recordation, shall not affect any
Borrower's obligation in respect of such Loans.  Notwithstanding anything in
this Agreement to the contrary, the Borrowers, the Administrative Agent and the
Lenders shall treat each Person whose name is recorded in the Register as the
owners of the Loan, the Notes and the Commitments recorded therein for the
purpose of this Agreement.  The entries in the Register shall be conclusive,
absent manifest error, and the parties hereto shall treat each person whose name
is recorded in the Register as the owner of an Extension of Credit or other
Obligation hereunder as the owner thereof for all purposes of the Credit
Documents, notwithstanding any notice to the contrary.  The Register shall be
available for inspection by the Borrowers or any Creditor at any reasonable time
and from time to time upon reasonable prior notice.

  2.10       
  LIBOR Loans and EUROLIBOR Loans.

 

(a)

LIBOR Loans in U.S. Dollars and EUROLIBOR Loans in Euros shall be
available to each Relevant Borrower for borrowing, continuance or conversion in
the minimum principal amounts and integral multiples thereof specified in
Section 2.3 for the Interest Periods selected by the Relevant Borrower in the
applicable Notice of Borrowing or Notice of Continuation/Conversion.

(b)

Unless (i) the Lead Arrangers shall be satisfied, in their sole
discretion, that the primary syndication of the Facilities has been completed,
or (ii) otherwise consented to by the Lead Arrangers in their sole discretion,
no Borrower shall be entitled to request, and no Lender shall be required to
make, any Bankers' Acceptance Loan, LIBOR Loan or EUROLIBOR Loan at any time on
or before the date that is 30 days after the Closing Date, except that from and
after the fifth Business Day after the Closing Date until the 30th day after the
Closing Date, a Borrower shall be entitled to request, and the Lenders shall
make, Bankers' Acceptance Loans, LIBOR Loans and EUROLIBOR Loans with Interest
Periods of 14 days, subject to the other terms and conditions of this Agreement.

(c)

If the Administrative Agent determines that deposits of the
necessary amount in U.S. Dollars or Euros for the applicable Interest Period are
not available in the London interbank market or if for any other reason such
Agent, acting reasonably, is unable to determine the applicable LIBOR or
EUROLIBOR, then the relevant LIBOR Loan or EUROLIBOR Loan will not be made, and
such Agent will notify the Relevant Borrower of such event promptly.  The
Administrative Agent will discuss with the Relevant Borrower the particular
circumstances and implications of such event.  In the event that such
determination is made by the Administrative Agent in the case of a proposed
Extension of Credit or continuance of an existing LIBOR Loan or EUROLIBOR Loan
or a proposed conversion of another type of

- 60 -

Loan into a LIBOR Loan or EUROLIBOR
Loan, the proposed LIBOR Loan or EUROLIBOR Loan will automatically be deemed to
be, in the case of a proposed LIBOR Loan, a U.S. Base Rate Loan (if the Relevant
Borrower delivering the Notice of Borrowing or Notice of Continuation/Conversion
is the Canadian Borrower), or a U.S. Prime Rate Loan (if the Relevant Borrower
delivering the Notice of Borrowing or Notice of Continuation/Conversion is the
U.S. Revolving Borrower), or in the case of a proposed EUROLIBOR Loan, a
Canadian Prime Rate Loan in the Equivalent Amount in Canadian Dollars of the
principal amount of such proposed EUROLIBOR Loan, and shall thereafter bear
interest as such.

(d)

If a LIBOR Loan to the U.S. Revolving Borrower is neither repaid
on the last day of the Interest Period applicable thereto nor converted into
another type of Loan on such date pursuant to and in accordance with
Section 3.2, or if the Administrative Agent has not received a Notice of
Continuation/Conversion specifying the term of the next Interest Period for such
LIBOR Loan in accordance with Section 3.2 on the third Business Day prior to the
last day of the then current Interest Period, then the outstanding LIBOR Loan
shall be deemed to be converted, on the last day of the then current Interest
Period, into a U.S. Prime Rate Loan and shall thereafter bear interest as such.

(e)

If a LIBOR Loan or EUROLIBOR Loan to the Canadian Borrower is
neither repaid on the last day of the Interest Period applicable thereto nor
converted into another type of Loan on such date pursuant to and in accordance
with Section 3.2, or if the Administrative Agent has not received a Notice of
Continuation/Conversion specifying the term of the next Interest Period for such
LIBOR Loan or EUROLIBOR Loan in accordance with Section 3.2 on the third
Business Day prior to the last day of the then current Interest Period, then the
outstanding LIBOR Loan or EUROLIBOR Loan shall be deemed to be converted, on the
last day of the then current Interest Period, in the case of a LIBOR Loan, into
a U.S. Base Rate Loan, or in the case of a EUROLIBOR Loan, a Canadian Prime Rate
Loan in the Equivalent Amount in Canadian Dollars of the principal amount of
such proposed EUROLIBOR Loan, and shall thereafter bear interest as such.

Except as otherwise provided herein, LIBOR Loans and EUROLIBOR
Loans shall not be repaid, prepaid or converted into another type of Loan except
on the last day of any Interest Period relating thereto.

  2.11       
  Letters of Credit.

 

(a)

Issuance; Expiry; Purpose.  Subject
to the terms and conditions hereof and of the applicable L/C Documents, if any,
and any other terms and conditions that the relevant Issuing Lender may
reasonably require (so long as such terms and conditions do not impose any
financial obligation on or require any Lien not otherwise contemplated by this
Agreement and any other Credit Document to be given by any Obligor or conflict
with any obligation of any Obligor under this Agreement or any other Credit
Document), each Issuing Lender agrees that it shall, from time to time upon
request by the Relevant Borrower in accordance with Section 2.11(c), issue (in
respect of Letters of Credit under the U.S. Revolving Facility) in U.S. Dollars
or (in respect of Letters of Credit under the Canadian Revolving Facility) in
Canadian Dollars, U.S. Dollars or Euros, as applicable (subject to the last
sentence of this paragraph), Letters of Credit for the account of the Canadian
Borrower or the U.S. Revolving Borrower for their own account or for the account
of any of their Subsidiaries (in which case the Relevant Borrower and such
Subsidiary shall be co-applicants with respect to such Letter of Credit unless
otherwise agreed to by the Issuing Lender; provided that to the extent
the Relevant Borrower is not a co-applicant, it shall remain principally liable
with respect to such Letter of Credit and all related reimbursement obligations
pursuant to Section 2.11(d) from the Closing Date until the Business Day prior
to the Revolving Loan Maturity Date, in the form established by the relevant
Issuing Lender; provided, however, that:

- 61 -

                       (i)

the sum of the aggregate amount of the L/C Obligations under the
U.S. Revolving Facility shall not at any time exceed the lesser of
(x) the U.S. Revolving Unused Commitment and (y) US$20.0 million; and

(ii)

the sum of the aggregate amount of the L/C Obligations
denominated in Canadian Dollars and the Equivalent Amount expressed in Canadian
Dollars of the L/C Obligations in U.S. Dollars or Euros under the Canadian
Revolving Facility shall not at any time exceed the lesser of (x) the
Canadian Revolving Unused Commitment and (y) Cdn$100.0 million. 

Promptly after receipt of any request for a Letter of Credit, the
relevant Issuing Lender shall confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has received a copy of
such request from the Relevant Borrower and, if not, the relevant Issuing Lender
will provide the Administrative Agent with a copy thereof.  Upon receipt by the
relevant Issuing Lender of confirmation from the Administrative Agent that the
requested issuance is permitted in accordance with the terms hereof, then,
subject to the terms and conditions hereof, the relevant Issuing Lender shall,
on the requested date, issue a Letter of Credit for the account of the Relevant
Borrower in accordance with the relevant Issuing Lender's usual and customary
business practices, and immediately thereupon, each Relevant Lender shall be
deemed to, and irrevocably and unconditionally agrees to, purchase from the
relevant Issuing Lender a risk participation in such Letter of Credit in an
amount equal to its ratable share of same.  Letters of Credit may, in the sole
discretion of the applicable Issuing Lenders, be denominated in currencies other
than Canadian Dollars, U.S. Dollars or Euros and shall be deemed for all
purposes hereunder to be denominated in the Equivalent Amount of Canadian
Dollars, such Equivalent Amount to be determined as of the last Business Day of
the most recently ended month, as of each Extension Date under the Canadian
Revolving Facility, as of the applicable expiry date, as of any drawing under
clause (b) and as of such other dates as the Administrative Agent shall
reasonably require.

The issuance and expiry date of each Letter of Credit shall be a
Business Day.  Except as otherwise expressly agreed upon by the relevant Issuing
Lender, no Letter of Credit shall have an original expiry date later than the
first anniversary of the date of issuance or, upon issuance or as extended,
shall have an expiry date later than the Revolving Loan Maturity Date.  Each
Letter of Credit shall be either (x) a standby Letter of Credit issued to
support the obligations, contingent or otherwise, of the Relevant Borrower or
any of its Wholly Owned Subsidiaries or (y) a commercial/import/documentary
Letter of Credit in respect of the purchase of goods or services by the Relevant
Borrower or any of its Wholly Owned Subsidiaries in the ordinary course
of business.  Each Letter of Credit shall comply with the related L/C Documents.

(b)

Fees.  Letter of Credit fees shall
be payable for the account of the Relevant Lenders on the daily average undrawn
face amount of each Letter of Credit at a rate per annum equal to
the Applicable Margin for LIBOR Loans under the U.S. Revolving Facility (in the
case of Letters of Credit issued under such facility) or under the Canadian
Revolving Facility (in the case of Letters of Credit issued under such
facility), as applicable, in each case as in effect from time to time, which
fees shall be paid on the last Business Day of each Quarter in arrears.  In
addition, an issuing fee on the face amount of each Letter of Credit equal to
0.25% per annum shall be payable to the relevant Issuing Lender
for its own account, which fee shall be paid on the last Business Day of each
Quarter in arrears.

(c)

Requests and Reports.  The request
for the issuance of a Letter of Credit shall be made by submitting a written
request, in a form reasonably acceptable to the relevant Issuing Lender at least
five (5) Business Days prior to the requested date of issuance, with a copy to
the Administrative Agent.  The request shall state (i) the requested date of
issuance, (ii) the amount thereof, (iii) the expiry date thereof, (iv) the name
and address of the beneficiary thereof, (v) the documents to be presented by
such beneficiary in case of any drawing thereof, (vi) the full text of any
certificate to be presented by such 

- 62 -

beneficiary in case of any drawing
thereunder, and (vii) such other matters as the relevant Issuing Lender may
reasonably require.  The relevant Issuing Lender will, upon issuance of any
Letter of Credit, at least quarterly and more frequently upon request, provide
to the Administrative Agent a report specifying the face amounts and terms of
all Letters of Credit issued by such Issuing Lender and which are then issued
and outstanding.

(d)

Reimbursement.  The Relevant
Borrower shall reimburse the relevant Issuing Lender, in the currency in which
such Letter of Credit is denominated, on the next Business Day succeeding the
drawing under any Letter of Credit either with the proceeds of a Loan obtained
hereunder or otherwise in same day funds as provided herein or in the L/C
Documents.  If:

(i)

the Relevant Borrower shall fail to reimburse the Issuing Lender
as provided hereinabove, or 

(ii)

there occurs an Event of Default when any Letter of Credit is
outstanding, whether or not drawn upon and the Administrative Agent or the
Majority Lenders so demands, unless the Relevant Borrower shall promptly notify
the relevant Issuing Lender of its intent to make alternate arrangements with
such Issuing Lender for payment to such Issuing Lender in immediately available
funds of an amount sufficient to permit such Issuing Lender to discharge its
liability under each such Letter of Credit (together with an amount equal to all
costs and expenses that such Issuing Lender may incur with respect to each such
Letter of Credit) (the ''L/C Maximum Amount''),

then the Relevant Borrower shall be deemed to have requested and
to have drawn down a U.S. Base Rate Loan where the Letter of Credit is
denominated in U.S. Dollars and issued under the Canadian Revolving Facility, a
U.S. Prime Rate Loan where the Letter of Credit is denominated in U.S. Dollars
and issued under the U.S. Revolving Facility, and a Canadian Prime Rate Loan
where the Letter of Credit is denominated in Canadian Dollars, Euros or any
currency, under the Relevant Revolving Facility, in each case in the amount of
the drawing in the case of (i) above, or in the L/C Maximum Amount, in the case
of (ii) above.  In the case of (i) above the proceeds of such Loan shall be used
to satisfy the Reimbursement Obligations, and in the case of (ii) above the
proceeds of such Loan shall be deposited and held in the Collateral Account as
cash collateral to secure L/C Obligations in respect of any such undrawn Letter
of Credit, to be released from the Collateral Account by the Administrative
Agent at such time as the applicable Letter of Credit has expired and all L/C
Obligations with respect thereto, if any, have been satisfied, unless the
maturity of the Loans shall have been accelerated, in which case such amounts
shall be applied to satisfy other Obligations of the Relevant Borrower under
this Agreement.  If the making of any Loan referred to above would be prohibited
pursuant to Section 2.4(e), such Loan shall not be made and instead the
unreimbursed amount of such drawing, or the L/C Maximum Amount, as applicable,
shall bear interest at a rate per annum equal to the interest rate for U.S. Base
Rate Loans where the Letter of Credit is denominated in U.S. Dollars and issued
under the Canadian Revolving Facility, a U.S. Prime Rate Loan where the Letter
of Credit is denominated in U.S. Dollars and issued under the U.S. Revolving
Facility, Canadian Prime Rate Loans where the Letter of Credit is denominated in
Canadian Dollars, Euros or any other currency, as applicable, plus 2.00% per
annum until the L/C Obligations with respect to the relevant Letter of
Credit have been satisfied.  The Relevant Borrower's Reimbursement Obligations
hereunder shall be absolute and unconditional under all circumstances
irrespective of (but without waiver of) any rights of set-off, counterclaim or
defense to payment that the applicable account party or the Relevant Borrower
may claim or have against the relevant Issuing Lender, the Agents, the Lenders,
the beneficiary of the Letter of Credit drawn upon or any other Person,
including any defense based on any failure of the applicable account party, the
Relevant Borrower or any other Obligor to receive consideration or the legality,
validity, regularity or unenforceability of the Letter of Credit.  For greater
certainty, all unpaid L/C Obligations shall constitute Obligations hereunder.

- 63 -

                               
(e)

Modification and Extension.  The
issuance of any supplement, modification, amendment, renewal or extension to any
Letter of Credit shall, for purposes hereof, be treated in all respects the same
as the issuance of a new Letter of Credit hereunder.

(f)

Uniform Customs and Practices; International Standby Practice.
 The Issuing Lender may provide that the Letter of Credit shall be subject to
The Uniform Customs and Practices for Documentary Credits (Publication No. 500
or the most recent publication) (the ''UCP'') or the International
Standby Practice (Publication No. 590 or the most recent publication) (the ''ISP''),
as published as of the date of issue by the International Chamber of Commerce,
in which case the UCP or ISP, as applicable, shall be incorporated in such
Letter of Credit and deemed in all respects to be a part thereof.

(g)

Responsibility of Issuing Lender.
 It is expressly understood and agreed as between the Lenders that the
obligations of the relevant Issuing Lender hereunder in respect of the issuance
or payment of any Letter of Credit are only those expressly set forth in this
Agreement and that such Issuing Lender shall be entitled to assume that the
conditions precedent set forth in Article 4 have been satisfied unless it shall
have acquired actual knowledge that any such condition precedent has not been
satisfied; provided, however, that nothing set forth in this
Section 2.11 shall be deemed to prejudice the right of any Lender to recover
from such Issuing Lender any amounts made available by such Lender for
distribution to such Issuing Lender pursuant to this Section 2.11 in the event
that it is finally determined by a court of competent jurisdiction that the
payment with respect to a Letter of Credit constituted gross negligence or
willful misconduct on the part of such Issuing Lender.

(h)

Conflict with L/C Documents.  In the
event of any conflict between the terms hereof and the terms of any L/C
Document, the terms hereof shall control.

(i)

Indemnification of Issuing Lender.

(i)

In addition to its other obligations under this Credit Agreement,
the Relevant Borrower hereby agrees to protect, indemnify, pay and hold the
relevant Issuing Lender harmless from and against any and all claims, demands,
liabilities, damages, losses, costs, charges and expenses (including reasonable
legal fees) that the relevant Issuing Lender may incur or be subject to as a
consequence, direct or indirect, of (A) the issuance of or payment or
non-payment of any Letter of Credit on behalf of such Borrower or (B) the
failure of the relevant Issuing Lender to honor a drawing under any such Letter
of Credit as a result of any act or omission, whether rightful or wrongful, of
any present or future de jure or de facto government or
governmental authority (all such acts or omissions herein called ''Government
Acts'').

(ii)

As between the Relevant Borrower and the relevant Issuing Lender,
the Relevant Borrower shall assume all risks of the acts, omissions or misuse of
any Letter of Credit by the beneficiary thereof.  The relevant Issuing Lender
shall not be responsible for:  (A) the form, validity, sufficiency, accuracy,
genuineness or legal effect of any document submitted by any party in connection
with the application for and issuance of any Letter of Credit, even if it should
in fact prove to be in any or all respects invalid, insufficient, inaccurate,
fraudulent or forged; (B) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign any Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, that may prove to be invalid or ineffective for any reason; (C) failure of
the beneficiary of a Letter of Credit to comply fully with conditions required
in order to draw upon a Letter of Credit; (D) errors, omissions, interruptions
or delays in transmission or delivery of any messages, by mail, cable,
telegraph, telex or otherwise, whether or not they be in cipher; (E) errors in
interpretation of technical terms; (F) any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under a Letter of
Credit or of the proceeds thereof; and (G) any consequences arising from causes
beyond the control of the relevant Issuing Lender, including any Government

- 64 -

     Acts.  None of the above
  shall affect, impair or prevent the vesting of the relevant Issuing Lender's
  rights or powers hereunder.

(iii)

In furtherance and extension and not in limitation of the
specific provisions set forth above, any action taken or omitted by the relevant
Issuing Lender, under or in connection with any Letter of Credit or the related
certificates, if taken or omitted in good faith, shall not put the relevant
Issuing Lender under any resulting liability to the Relevant Borrower or any
other Obligor.  It is the intention of the parties that this Credit Agreement
shall be construed and applied to protect and indemnify the relevant Issuing
Lender against any and all risks involved in the issuance of the Letter of
Credit, all of which risks are hereby assumed by the Relevant Borrower,
including any and all risks of the acts or omissions, whether rightful or
wrongful, of any present or future Government Acts.  The relevant Issuing Lender
shall not in any way be liable for any failure by such Issuing Lender or anyone
else to pay any drawing under any Letter of Credit as a result of any Government
Acts or any other cause beyond the control of such Issuing Lender.

(iv)

Nothing in this Section 2.11(i) is intended to limit the
Reimbursement Obligations of the Relevant Borrower contained in this
Section 2.11.  The obligations of the Relevant Borrower under this
Section 2.11(i) shall survive the termination of this Agreement.  No act or
omission of any current or prior beneficiary of a Letter of Credit shall in any
way affect or impair the rights of the relevant Issuing Lender to enforce any
right, power or benefit under this Agreement.

Notwithstanding anything to the contrary contained in this
Section 2.11, the Relevant Borrower shall have no obligation to indemnify the
relevant Issuing Lender in respect of any liability incurred by such Issuing
Lender arising solely out of the gross negligence or willful misconduct of such
Issuing Lender, as finally determined by a court of competent jurisdiction.
 Nothing in this Agreement shall relieve the relevant Issuing Lender of any
liability to the Relevant Borrower in respect of any action taken by the Issuing
Lender which action constitutes gross negligence or willful misconduct of such
Issuing Lender as determined by a court of competent jurisdiction.

(j)

Additional Issuing Lenders.  Either
Borrower may, at any time and from time to time with the written consent of the
Administrative Agent (which consent shall not be unreasonably withheld) and such
Lender, designate one or more additional Lenders to act as an issuing bank under
the terms of the Credit Agreement.  Any Lender designated as an issuing bank
pursuant to this paragraph (j) shall be deemed to be an ''Issuing Lender'' (in
addition to being a Lender) in respect of Letters of Credit issued or to be
issued by such Lender, and with respect to such Letters of Credit, such term
shall thereafter apply to the other issuing bank and such Lender.

  2.12       
  Swingline Facilities.

 

(a)

Subject to the terms and conditions set forth herein, the U.S.
Swingline Facility Lender agrees to make short term revolving lines of credit
available to the U.S. Revolving Borrower in an aggregate principal amount at any
time outstanding of up to the U.S. Swingline Maximum Amount, and the Canadian
Swingline Facility Lender agrees to make short term revolving lines of credit
available to the Canadian Borrower, in an aggregate principal account at any
time outstanding of up to the Canadian Swingline Maximum Amount, in each case
from time to time following the Closing Date until the Business Day prior to the
Revolving Loan Maturity Date:

(i)

by way of Loans each in a minimum amount of the lesser of
Cdn$100,000 and the amount then remaining under the Committed Amount in respect
of the relevant Swingline Facility, and (if applicable) in integral multiples of
Cdn$50,000 in excess thereof in Canadian Dollars by way of Canadian Prime Rate
Loans under the Canadian Swingline Facility; and

- 65 -

                       (ii)

by way of Loans each in a minimum amount of the lesser of
US$100,000 and the U.S. Dollar Equivalent Amount then remaining under the
Committed Amount in respect of the relevant Swingline Facility and (if
applicable) in integral multiples of US$50,000 in excess thereof in U.S. Dollars
by way of U.S. Base Rate Loans and U.S. Prime Rate Loans, respectively, under
the Canadian Swingline Facility and the U.S. Swingline Facility.

Provided that the maturity date of the Facilities has not
previously been accelerated in accordance with Section 2.12(c), each Loan under
a Swingline Facility, together with accrued and unpaid interest thereon, shall
be due and payable upon demand by the Swingline Lenders but no earlier than
12:00 noon (New York City time) on the fifth day following the Extension Date in
respect of such Loan (or, if such day is not a Business Day, on the Business Day
immediately following such day).  If the Relevant Borrower fails to repay a Loan
under the relevant Swingline Facility as provided hereinabove, the Relevant
Borrower shall be deemed to have requested and to have drawn down an equivalent
type of Loan under the relevant Revolving Facility (which, for greater
certainty, for the purposes hereof shall not include the relevant Swingline
Facility).  The proceeds of such Loan shall be used to repay the relevant Loan
under the relevant Swingline Facility.  Within the foregoing limits of such
terms and conditions set forth herein, the Relevant Borrower may borrow, prepay
and reborrow loans under the relevant Swingline Facility.  For greater
certainty, the Canadian Swingline Facility shall be a sub-facility of the
Canadian Revolving Facility, and the U.S. Swingline Facility shall be a
sub-facility of the U.S. Revolving Facility.

(b)

The relevant Swingline Facility Lender shall make Loans under the
relevant Swingline Facility available to the Relevant Borrower as arranged
between the Relevant Borrower and the relevant Swingline Facility Lender.  Each
Extension of Credit under a Swingline Facility (other than by way of overdraft)
shall be requested by oral notice from the Relevant Borrower to the relevant
Swingline Facility Lender on the relevant Extension Date (which shall be a
Business Day), with a Notice of Borrowing executed by the Relevant Borrower in
the manner specified in Section 2.4(a) to follow on the same day.  Each Loan
under a Swingline Facility shall be a Canadian Prime Rate Loan (where the Loan
is made under the Canadian Swingline Facility in Canadian Dollars), either a
U.S. Prime Rate Loan (where the Loan is made under the U.S. Swingline Facility),
U.S. Base Rate Loan (where the Loan is made under the Canadian Swingline
Facility in U.S. Dollars).  Loans under a Swingline Facility shall bear interest
at a rate per annum equal to the rate applicable to a Canadian
Prime Rate Loan, U.S. Prime Rate Loan or U.S. Base Rate Loan, as applicable,
shall be secured by the Security Documents and shall, except as specifically set
forth herein, be deemed to be Loans under the Relevant Revolving Facility.  The
interest paid on Loans under a Swingline Facility is solely for the account of a
Swingline Facility Lender.

(c)

Any Loans outstanding under a Swingline Facility on the
occurrence of an Event of Default shall, if the Administrative Agent declares
the Outstanding Amount under the Revolving Facilities to be immediately due and
payable or the Commitments under the Revolving Facilities to be terminated, be
immediately due and payable on the date of such declaration by the
Administrative Agent.  Upon such termination, the Commitment in respect of each
Swingline Facility shall be terminated and the Commitment Percentage of each
Swingline Facility Lender shall be adjusted to reflect such termination and the
payments by each Lender as provided in this Section 2.12(c).  Upon a declaration
by the Administrative Agent that such Loans have become due and payable, or upon
a failure by the Relevant Borrower to repay a Loan under the relevant Swingline
Facility as provided in Section 2.12(a), each Swingline Facility Lender shall
promptly notify the Administrative Agent and the Administrative Agent shall, by
notice to the Relevant Lenders (including each Swingline Facility Lender in its
respective capacity as Lender), require the Relevant Lenders to promptly pay to
the Administrative Agent, for the account of the relevant Swingline Facility
Lender, their respective Commitment Percentages (adjusted as aforesaid) of the
aggregate Outstanding Amount of such Loans, which shall then constitute Loans
under the Relevant Facility; provided that if the Relevant Lenders are
prevented from making such Loans by provisions of Applicable Insolvency Law or
otherwise, the amount so paid by each Relevant Lender shall constitute a 

- 66 -

purchase by it of a participation in the outstanding amount of such Swingline
Facility Loans.  Any such notice to the Relevant Lenders shall specify the date
on which such payments are to be made by them.  No later than 12:00 noon
(New York City time) on the date so specified each Relevant Lender shall pay the
amount so notified to it in immediately available funds to the Administrative
Agent for the account of the relevant Swingline Facility Lender.  Each Relevant
Lender's obligations to make payments for the account of the relevant Swingline
Facility Lender under this Section 2.12(c) shall be absolute and unconditional
and shall not be affected by any circumstance; provided that no Relevant
Lender shall be obligated to make any payment to the Administrative Agent under
this Section 2.12(c) with respect to a Swingline Facility Loan made by the
relevant Swingline Facility Lender at a time when the relevant Swingline
Facility Lender had received written notice from the Relevant Borrower or the
Administrative Agent that an Event of Default had occurred and was continuing
and the relevant Swingline Facility had not yet been terminated or to the extent
that such payment would exceed the relevant Commitment.

(d)

At any time and from time to time with the written consent of the
Administrative Agent (which consent shall not be unreasonably withheld) and such
Lender, the Canadian Borrower may designate a Lender to act as the U.S.
Swingline Facility Lender or Canadian Swingline Facility Lender under the terms
hereof.

ARTICLE 3

GENERAL PROVISIONS APPLICABLE TO LOANS

  3.1       
  Interest.

 

(a)

Interest on Floating Rate Loans.
 Interest on any outstanding Canadian Prime Rate Loans, U.S. Prime Rate Loans
and U.S. Base Rate Loans (including Loans made under a Swingline Facility) shall
accrue at a rate per annum equal to the Canadian Prime Rate, the U.S.
Prime Rate or the U.S. Base Rate, as the case may be, plus, in each case, the
Applicable Margin, as each is in effect from time to time during the period of
time that such Loan is outstanding.  Such interest shall be payable by the
Relevant Borrower:

(i)

in the case of any Canadian Prime Rate Loan, to the
Administrative Agent to the credit of the Relevant Payment Account in Canadian
Dollars; or

(ii)

in the case of any U.S. Prime Rate Loan or U.S. Base Rate Loan
made under any Facility, to the Administrative Agent to the credit of the
Relevant Payment Account in U.S. Dollars.

Subject to the provisions of Section 2.12 with respect to Loans
made under the Swingline Facilities, all interest payable in accordance with
this Section 3.1 shall be calculated and payable on a quarterly basis in arrears
on the last Business Day of each Quarter and on the Revolving Loan Maturity Date
or Term Loan Maturity Date, as the case may be (each, an ''Interest Payment
Date''), in each year for the period from the Extension Date (or, if
applicable, the date of conversion of such Loan into a Canadian Prime Rate Loan,
U.S. Prime Rate Loan or U.S. Base Rate Loan, as the case may be) or the
preceding Interest Payment Date for such Canadian Prime Rate Loan, U.S. Prime
Rate Loan or U.S. Base Rate Loan, as the case may be, to the day preceding the
next following Interest Payment Date.  Interest under this Section 3.1(a) shall
be calculated on the principal amount of such Floating Rate Loan from time to
time outstanding during such period.  Changes in the Canadian Prime Rate, U.S.
Prime Rate or U.S. Base Rate shall cause an automatic and immediate adjustment
of the interest rate payable on any outstanding Canadian Prime Rate Loans, U.S.
Prime Rate Loans or U.S. Base Rate Loans, as the case may be, without the
necessity of any notice to the Relevant Borrower.

- 67 -

                               
(b)

Interest on LIBOR Loans and EUROLIBOR Rate Loans.
 Interest on any outstanding LIBOR Loan and EUROLIBOR Rate Loan shall accrue
throughout the Interest Period in respect of such LIBOR Loan and EUROLIBOR Rate
Loan at a rate per annum equal to the LIBOR or EUROLIBOR, as applicable,
determined two Business Days prior to and for value on the first day of such
Interest Period, in each case plus the Applicable Margin in effect on the first
day of such Interest Period, which interest shall be calculated and payable in
arrears, on the principal amount of such LIBOR Loan or EUROLIBOR Loan, on the
basis of the actual number of days elapsed, on the last day of such Interest
Period (or if such Interest Period should exceed three months, on the last
Business Day of each three-month period during such Interest Period and on the
last day of such Interest Period), and in any event no later than the Revolving
Loan Maturity Date or Term Loan Maturity Date, as the case may be.  Such
interest shall be payable by the Relevant Borrower:

(i)

in the case of any LIBOR Loan made under any Facility, to the
Administrative Agent to the credit of the Relevant Payment Account in U.S.
Dollars; and

(ii)

in the case of any EUROLIBOR Loan, to the Administrative Agent to
the credit of the Relevant Payment Account in Euros.

(c)

Default Rate of Interest.  Overdue
amounts hereunder shall bear interest, calculated daily and compounded and
payable monthly in arrears and in any event on the Revolving Loan Maturity Date
or Term Loan Maturity Date, at a rate per annum equal to 2.00% plus the
rate that would otherwise be applicable to such overdue amounts.

  3.2   
  Conversions and Continuations.

 

Subject to the other provisions of this Agreement, including
Sections 3.14 and 3.15, each Borrower shall have the option, on any Business
Day, to continue any particular type of Loan outstanding under the Relevant
Facility as the same type of Loan and, where applicable, for a subsequent
Interest Period, or to convert any type of Loan outstanding under the Relevant
Facility into another type of Loan available under such Relevant Facility; 
provided that:

(a)

each such continuation or conversion must be requested by the
Relevant Borrower pursuant to a written Notice of Continuation/Conversion, in
compliance with the terms set forth below;

(b)

a Fixed Rate Loan may only be continued or converted into a
Floating Rate Loan or another type of Fixed Rate Loan (i) on the last day of the
Interest Period applicable thereto, and (ii) if no Default or Event of Default
then exists and is continuing;

(c)

a Floating Rate Loan may only be converted into a Fixed Rate Loan
or another type of Floating Rate Loan if no Default or Event of Default then
exists and is continuing;

(d)

any request to continue a Fixed Rate Loan that fails to comply
with the terms hereof, or any failure to request a continuation of a Fixed Rate
Loan at the end of the Interest Period applicable thereto in accordance with the
provisions hereof, shall constitute an automatic conversion on the last day of
the applicable Interest Period to (i) a U.S. Prime Rate Loan, in the case of any
such Fixed Rate Loan outstanding under the U.S. Revolving Facility, (ii) a U.S.
Base Rate Loan, in the case of any such Fixed Rate Loan outstanding under the
Canadian Revolving Facility that is denominated in U.S. Dollars or that is
outstanding under the New Term Facility, (iii) a Canadian Prime Rate Loan, in
the case of any such Fixed Rate Loan outstanding under the Canadian Revolving
Facility that is denominated in Canadian Dollars, and (iv) a Canadian Prime

- 68 -

Rate Loan in the Equivalent Amount in Canadian Dollars of the principal amount
of such Fixed Rate Loan, in the case of any such Fixed Rate Loan outstanding
under the Canadian Revolving Facility that is denominated in Euros; and

(e)

where any conversion of a Loan under the Canadian Revolving
Facility as permitted hereby would involve a change from one currency to
another, such conversion shall also be subject to such other requirements as the
Administrative Agent may reasonably impose, including the requirement that the
Relevant Borrower repay the outstanding Loan and reborrow a new Loan in the
requested currency.

Each such continuation or conversion must be requested by the
Relevant Borrower no later than 11:00 a.m. (New York City time) on:

(i)

the third Business Day prior to the last day of the relevant
Interest Period in respect of the requested conversion on such last day of an
outstanding Fixed Rate Loan (other than a Bankers' Acceptance Loan) into a
Floating Rate Loan or into a different type of Fixed Rate Loan;

(ii)

the third Business Day prior to the first day of the relevant
Interest Period of a requested continuation of an outstanding Fixed Rate Loan
(other than a Bankers' Acceptance Loan) for a further Interest Period or a
requested conversion of a Floating Rate Loan into a Fixed Rate Loan (other than
a Bankers' Acceptance Loan) for such Interest Period;

(iii)

the third Business Day prior to the first day of the relevant
Interest Period prior to the last day of the relevant Interest Period in respect
of the requested conversion on such last day of an outstanding Bankers'
Acceptance Loan into a EUROLIBOR Loan;

(iv)

the second Business Day prior to the last day of the relevant
Interest Period in respect of the requested conversion on such last day of an
outstanding Bankers' Acceptance Loan into a Floating Rate Loan or a different
type of Fixed Rate Loan (other than a EUROLIBOR Loan);

(v)

the second Business Day prior to the last day of the relevant
Interest Period in respect of a requested continuation of an outstanding
Bankers' Acceptance Loan for such further Interest Period, or a requested
conversion of an outstanding Fixed Rate Loan or Floating Rate Loan into a
Bankers' Acceptance Loan for such Interest Period; and

(vi)

the second Business Day prior to the requested Extension Date in
respect of a requested conversion of a Floating Rate Loan into a different type
of Floating Rate Loan.

For greater certainty, any change in the basis on which interest
on the New Term Facility is computed from time to time in accordance with the
terms hereof shall not constitute a substitution of new indebtedness for
existing indebtedness and in all such circumstances the indebtedness under the
New Term Facility shall continue with only the basis on which interest is
computed changing.

 

 

 

 

 

  3.3 
          Minimum Amounts and
  Maximum Number of Outstanding Loans.

 

Each request for a conversion or continuation of any particular
Loan shall be subject to the minimum amounts specified in Section 2.3 in respect
of the Relevant Facility and the type of Loan requested to be continued or
converted into pursuant to any Notice of Continuation/ Conversion.  In addition,

- 69 -

                                (a)

no more than eight LIBOR Loans shall be outstanding under the
U.S. Revolving Facility at any one time;

(b)

no more than ten Bankers' Acceptance Loans, BA Rate Loans, LIBOR
Loans and EUROLIBOR Loans in total shall be outstanding under the Canadian
Revolving Facility at any one time; and

(c)

no more than ten LIBOR Loans shall be outstanding under the New
Term Facility at any one time.

For purposes of the foregoing, (i) a LIBOR Loan, EUROLIBOR Loan
or Bankers' Acceptance Loan that any Borrower has requested be made available by
the Relevant Lenders pursuant to a Notice of Borrowing or a Notice of
Continuation/Conversion shall not be counted if it is intended to repay, in
full, another LIBOR Loan, EUROLIBOR Loan or Bankers' Acceptance Loan then
outstanding on the Extension Date of the requested LIBOR Loan, EUROLIBOR Loan or
Bankers' Acceptance and (ii) two or more LIBOR Loans, EUROLIBOR Loans or
Bankers' Acceptance Loans, as the case may be, with Interest Periods of the same
duration and ending on the same day shall be considered as one LIBOR Loan,
EUROLIBOR Loan or Bankers' Acceptance Loan, as the case may be, for purposes
only of the foregoing clauses (a) through (c).

  3.4       
  Hedging Agreements.

 

(a)

Each Borrower may, for reasonable business and not for
speculative purposes, hedge its interest rate risk or foreign exchange rate risk
through the use of one or more Hedging Agreements for time periods expiring no
later than the Term Loan Maturity Date in the case of the Relevant Borrowers'
hedging exposure under the New Term Facility, and the Revolving Loan Maturity
Date in the case of the Relevant Borrowers' hedging exposure under the Revolving
Facilities, and, except with respect to any Hedging Agreements in effect prior
to and on the Closing Date to the extent not relating to hedging of Obligations
hereunder, only with any Lender or Lender Affiliate (or with other
counterparties reasonably acceptable to the Lead Arrangers), as such Borrower
elects.  Any such Borrower's obligations to any such Lender or Lender Affiliate
in connection with such Hedging Agreements shall not constitute usage of the
Commitment of such Lender.  No Lender not a party to the applicable Hedging
Agreement shall be subject to or participate in any risk in connection
therewith, and no Lender shall be obligated to enter into any such transaction.
 All Hedging Obligations of the Borrowers under Hedging Agreements with the
Lenders and Lender Affiliates shall be secured by the Security Documents, shall
rank pari passu with all other Obligations and shall be entitled to the
benefits of the Guarantees and of the Credit Documents.

(b)

The Canadian Borrower shall at all times prior to the third
anniversary of the Amendment Effective Date cause the percentage of the
outstanding principal amount of its Funded Debt that is subject to a fixed rate
of interest, whether in accordance with its terms or by way of the use of one or
more Interest Rate Protection Agreements with any Lender or Lender Affiliate (or
with other counterparties reasonably acceptable to the Lead Arrangers), as the
Canadian Borrower elects, to be at least 25%.  To the extent that such Interest
Rate Protection Agreements are entered into with any Lender or any Lender
Affiliate, the provisions of Section 3.4(a) shall be applicable thereto.

  3.5       
  Place and Manner of Payments

 

(a)

All payments of principal, interest, fees, expenses and other
amounts to be made by any Borrower under this Agreement shall be deposited by
such Borrower into the Relevant Payment Account not later than 12:00 noon
(New York City time) on the date when due, in the relevant currency 

- 70 -

and in immediately available funds.  Payments received after such time on such
date or on any succeeding date shall be deemed to have been received on the
Business Day next following such date of receipt.  Each Borrower shall, at the
time it makes any payment under this Agreement, specify to the Administrative
Agent the Loans, fees or other Obligations by such Borrower hereunder to which
such payment is to be applied (and in the event that it fails to so specify, or
if such application would be inconsistent with the terms hereof, the
Administrative Agent shall, subject to Section 3.11, distribute such payment to
the Relevant Lenders in such manner as the Administrative Agent may deem
appropriate).  The Administrative Agent shall distribute such payments to the
applicable Lenders on the date of receipt if any such payment is received prior
to 12:00 noon (New York City time) on such date; otherwise the Administrative
Agent shall distribute such payment to the Relevant Lenders on the next
succeeding Business Day.  

(b)

Unless the Administrative Agent shall have received written
notice from the Relevant Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Relevant Lenders and the
relevant Issuing Lender hereunder that such Borrower will not make such payment,
the Administrative Agent may assume that such Borrower has made such payment on
such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Relevant Lenders or the relevant Issuing Lender, as the case
may be, the amount due.  In such event, if the Relevant Borrower has not in fact
made such payment, then each of the Relevant Lenders or the relevant Issuing
Lender, as the case may be, severally agrees to repay to the Administrative
Agent forthwith on demand the amount so distributed to such Relevant Lender or
relevant Issuing Lender with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment
to the Administrative Agent, at (i) in the case of any U.S. Dollar obligation,
the Federal Funds Rate plus 200 basis points, (ii) in the case of any Canadian
Dollar obligation, the Bank of Canada Overnight Rate plus 200 basis points, and
(ii) in the case of any Euro obligation, the Bank of Canada Eurolibor rate plus
200 basis points.

(c)

If any Lender shall fail to make any payment required to be made
by it pursuant to Section 3.5(b), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender
to satisfy such Lender's obligations under such Section 3.5(b) until all such
unsatisfied obligations are fully paid.  Whenever any payment hereunder shall be
stated to be due on a day which is not a Business Day, the due date thereof
shall be extended to the next succeeding Business Day (subject to the accrual of
interest and fees for the period of such extension), except that in the case of
LIBOR Loans and EUROLIBOR Loans, if such extension would cause such payment to
be made in the next following calendar month, then such payment shall instead be
made on the next preceding Business Day.

  3.6       
  Voluntary Prepayments.

 

Each Borrower may, upon not less than one (1) Business Day's
prior notice to the Administrative Agent, make repayments under the Revolving
Facilities in whole or in part from time to time without premium or penalty
(which shall be available to be reborrowed subject to the terms and conditions
of this Agreement) and may prepay any Loan under the New Term Facility made to
it in whole or in part from time to time without premium or penalty; provided,
however, that (except in the case of any Loan under a Swingline
Facility):

(i)

Floating Rate Loans may only be prepaid upon prior notice to the
Administrative Agent substantially in the form of Exhibit K at least
one (1) Business Day prior to the date of such prepayment, and each such partial
prepayment of any Floating Rate Loan shall be in the minimum aggregate principal
amount of Cdn$1.0 million, US$1.0 million and €1.0 million, as applicable (or,
if less, the amount then outstanding), and integral multiples of Cdn$250,000,
US$250,000 and €250,000, as applicable, in excess thereof;

- 71 -

                      (ii)

LIBOR Loans and EUROLIBOR Loans may only be prepaid upon prior
notice to the Administrative Agent substantially in the form of Exhibit K
at least three (3) Business Days prior to the date of such prepayment and
will be subject to Section 3.19, and each such partial prepayment of any LIBOR
Loan or EUROLIBOR Loan shall be, in the case of LIBOR Loans, in the minimum
aggregate principal amount of US$2.5 million (or, if less, the amount then
outstanding) and integral multiples of US$500,000 in excess thereof, and in the
case of EUROLIBOR Loans, in the minimum aggregate principal amount of €2.5
million (or, if less, the amount then outstanding) and integral multiples of
€500,000 in excess thereof; and

(iii)

outstanding Bankers' Acceptances may not be prepaid but may be
cash collateralized, and the provisions of Section 2.6(i) will apply mutatis
mutandis.

Any voluntary prepayments made pursuant to this Section 3.6 shall
be applied in accordance with the provisions of Section 3.7(f).

  3.7       
  Mandatory Repayments.

 

(a)

Excess Repayments.  In the event
that, at any time, the Outstanding Amount in respect of any Facility exceeds the
Committed Amount in respect of such Facility, then the Relevant Borrower shall
promptly repay to the Administrative Agent the full amount of such excess; 
provided that in the case of the Revolving Facilities, if such excess
results from changes in exchange rates, the Relevant Borrower shall repay,
within two (2) Business Days after notice from the Administrative Agent, such
excess or the balance thereof then outstanding on the date of payment.

(b)

Periodic Repayments.  The Canadian
Borrower shall make repayments in respect of the New Term Facility in the
amounts and on the dates set forth in Schedule 3.7(b).

(c)

Net Available Proceeds.  The
Canadian Borrower on behalf of all the Borrowers shall make repayments in
respect of the Facilities as follows:

(i)

Equity Issuance.  Within two (2)
Business Days after any Equity Issuance, in an aggregate principal amount equal
to the lesser of (A) 25% of the Net Available Proceeds from such Equity Issuance
and (B) 50% of the excess (if any) of (x) the aggregate principal amount of
Incremental Loans and New Term Loans outstanding on the date of such Equity
Issuance over (y) US$50,000,000.

(ii)

Debt Issuance.  Within two (2)
Business Days after any Debt Issuance (other than Permitted Indebtedness (except
Permitted Indebtedness incurred pursuant to clause (l) of the definition
thereof)), in an aggregate principal amount equal to 100% of the Net Available
Proceeds of such Debt Issuance.

(d)

New Term Facility Exceptions.
 Notwithstanding anything contained in any Credit Document, but subject to
Article 8, the aggregate amount of repayments required to be made under this
Section 3.7 from the Amendment Effective Date to the first day after the fifth
anniversary thereof (the ''Catch-up Date'') in respect of the New Term
Facility shall not exceed 25% of the Outstanding Amount of the New Term Facility
as of the Amendment Effective Date.  Within five (5) Business Days following the
Catch-up Date, the Canadian Borrower shall repay the New Term Facility in an
aggregate principal amount equal to the amount of repayments that would have
been required to be made (but were not so made) in respect thereof under this
Section 3.7 but for the limitation expressed in the preceding sentence, and such
payments shall be applied in the manner specified in Section 3.7(f).

- 72 -

                              
(e)

Facility Reductions.  The Commitment
in respect of each Facility shall be reduced by the amount of each repayment
required to be made or applied to the Relevant Facility under this Section 3.7
and under Section 3.8 at the time when such repayment is required to be
made or applied.

(f)

Applications of Payments.  Subject
to the provisions of Sections 2.2A(d) and 3.7(d), in connection with any
repayment or reduction of Commitment pursuant to this Section 3.7 (other than
pursuant to Section 3.7(a) or (b)) or Section 3.8 or any voluntary prepayment
pursuant to Section 3.6, such repayment, reduction or prepayment shall be made
such that the aggregate amount thereof is applied to the New Term Facility.
 Each such repayment or voluntary prepayment (other than pursuant to
Section 3.7(a) or (b)) applied against the New Term Facility shall be applied
against the repayments required to be made pursuant to Section 3.7(b) pro
rata.

  3.8       
  Disposition Events and Casualty Events.

 

(a)

Disposition Events.  Within two (2)
Business Days after any date on which Disposition Proceeds exceed Cdn$5.0
million, the Canadian Borrower shall give written notice to the Administrative
Agent thereof (a ''Disposition Event Offer''), which shall contain and
constitute an offer by and on behalf of the Relevant Borrowers to prepay the New
Term Facility as specified in Sections 3.7(e) and (f) in an aggregate
principal amount equal to the entire amount of such Disposition Proceeds on a
date specified in the Disposition Event Offer that is not less than five
Business Days and not more than ten Business Days after the date of the
Disposition Event Offer.  For purposes of this Section 3.8(a):

(i)

Disposition Proceeds shall not include Net Available Proceeds
from a Disposition Event to the extent that (A) no Default or Event of Default
then exists or would arise therefrom, and (B) the Canadian Borrower has
delivered an Officer's Certificate to the Administrative Agent on or prior to
such date stating that such Net Available Proceeds shall be reinvested in assets
used or usable in the business of (x) if such Disposition Event was effected by
any Obligor, any Company (but if such Company is not an Obligor, such
reinvestment must constitute a Permitted Investment) and (y) if such Disposition
Event was effected by any other Company, any Company (other than Holdco or a
Receivables Co.), in each case within one year following the date of such
Disposition Event (which certificate shall set forth the estimates of the
proceeds to be so expended);

(ii)

if all or any portion of Net Available Proceeds permitted to be
applied to reinvestment pursuant to clause (i) above are not so used within the
period beginning on the date such Net Available Proceeds are received and ending
on the first anniversary of such date, then such remaining portion shall be
deemed Disposition Proceeds received on the last day of such period (or such
earlier date as the relevant Company determines not to reinvest any portion
thereof) or upon the acceleration of the maturity of the Loans, as applicable,
as specified in Section 3.7(e) and (f) (it being understood that the foregoing
shall in no way affect the obligation of any Company to obtain the consent of
the Majority Lenders to effect any Disposition not permitted by this Agreement);
and

(iii)

pending reinvestment in accordance with clause (i) above or the
making of a Disposition Event Offer, the Relevant Borrower shall either (A)
temporarily prepay Revolving Loans under the U.S. Revolving Facility and/or the
Canadian Revolving Facility, as applicable, in accordance with Section 3.6 in an
amount equal to such Net Available Proceeds or (B) deposit such Net Available
Proceeds in the relevant Collateral Account of such Borrower, to be released
therefrom in connection with such reinvestment (unless the maturity of the Loans
shall have been accelerated) or otherwise applied in accordance with the terms
of the Canadian Security Agreement or U.S. Security Agreement, as applicable.

- 73 -

Each Lender shall have the right to accept or decline the
Disposition Event Offer by providing written notice to the Canadian Borrower (on
behalf of all the Borrowers) within five Business Days of receipt of the
Disposition Event Offer.  The failure of any Lender to notify the
Canadian Borrower of its acceptance within such five Business Days shall be
deemed to be a rejection of the Disposition Event Offer.  To the extent any
portion of Disposition Proceeds subject to the Disposition Event Offer are
declined by the Relevant Lenders, the Relevant Borrower may use such portion of
the Disposition Proceeds for any purpose not otherwise prohibited by this
Agreement.

(b)

Casualty Events.  Within two (2)
Business Days after any date on which Casualty Proceeds exceed Cdn$5.0 million,
the Canadian Borrower shall give written notice to the Administrative Agent
thereof (a ''Casualty Event Offer''), which shall contain and constitute an
offer by and on behalf of the Relevant Borrowers to prepay the New Term Facility
as specified in Sections 3.7(e) and (f) in an aggregate principal amount equal
to the entire amount of such Casualty Proceeds on a date specified in the
Casualty Event Offer that is not less than five Business Days and not more than
ten Business Days after the date of the Casualty Event Offer.  For purposes of
this Section 3.8(b):

(i)

Casualty Proceeds shall not include Net Available Proceeds from a
Casualty Event to the extent that (A) no Default or Event of Default then exists
or would arise therefrom, and (B) the Canadian Borrower has delivered an
Officer's Certificate to the Administrative Agent on or prior to such date
stating that such Net Available Proceeds shall be reinvested in assets used or
usable in the business of the Canadian Borrower or any of its Subsidiaries or
the repair, replacement or restoration of the Property in respect of which such
Casualty Event has occurred, in each case within one year following the date of
the receipt of such Net Available Proceeds (which certificate shall set forth
the estimates of the proceeds to be so expended);

(ii)

if all or any portion of Net Available Proceeds permitted to be
applied to reinvestment pursuant to clause (i) above are not so used within the
period beginning on the date such Net Available Proceeds are received and ending
on the first anniversary of such date, then such remaining portion shall be
deemed Casualty Proceeds received on the last day of such period (or such
earlier date as the relevant Company determines not to reinvest any portion
thereof) or upon the acceleration of the maturity of the Loans, as applicable,
as specified in Sections 3.7(e) and (f); and

(iii)

pending reinvestment in accordance with clause (i) above or the
making of a Casualty Event Offer, the Relevant Borrower shall either
(A) temporarily prepay Revolving Loans under the U.S. Revolving Facility and/or
the Canadian Revolving Facility, as applicable, in accordance with Section 3.6
in an amount equal to such Net Available Proceeds or (B) deposit such Net
Available Proceeds in the relevant Collateral Account of such Borrower, to be
released therefrom in connection with such reinvestment (unless the maturity of
the Loans shall have been accelerated) or otherwise applied in accordance with
the terms of the Canadian Security Agreement or the U.S. Security Agreement, as
applicable.

Each Lender shall have the right to accept or decline the
Casualty Event Offer by providing written notice to the Canadian Borrower (on
behalf of all the Borrowers) within five Business Days of receipt of the
Casualty Event Offer.  The failure of any Lender to notify the Canadian Borrower
of its acceptance within such five Business Days shall be deemed to be a
rejection of the Casualty Event Offer.  To the extent any portion of Casualty
Proceeds subject to the Casualty Event Offer are declined by the Relevant
Lenders, the Relevant Borrower may use such portion of the Casualty Proceeds for
any purpose not otherwise prohibited by this Agreement.

- 74 -

  3.9       
  Fees.

 

(a)

Commitment Fees.  In consideration
of the Canadian Revolving Committed Amount being made available to the Canadian
Borrower and the U.S. Revolving Committed Amount being made available to the
U.S. Revolving Borrower by the Revolving Lenders hereunder:

(i)

the Canadian Borrower shall pay to the Administrative Agent, for
the pro rata benefit of each Canadian Revolving Lender (based on each
such Lender's Commitment Percentage of the Aggregate Committed Canadian
Revolving Amount), a Commitment Fee as set out in paragraph (b) of this
Section 3.9; and

(ii)

the U.S. Revolving Borrower shall pay to the Administrative
Agent, for the pro rata benefit of each U.S. Revolving Lender (based on
each such Lender's Commitment Percentage of the Aggregate Committed U.S.
Revolving Amount), a Commitment Fee as set out in paragraph (b) of this
Section 3.9.

(b)

Calculation of Commitment Fees.  The
Commitment Fees will be calculated at the end of each Quarter by multiplying the
daily unused average amount of each of the following (based on the daily closing
balances), as applicable by 0.50%:

(i)

the U.S. Revolving Unused Commitment (in the case of the U.S.
Revolving Facility);

(ii)

the Canadian Revolving Unused Commitment (in the case of the
Canadian Revolving Facility); 

(iii)

the amount by which the Committed Amount in respect of the U.S.
Swingline Facility exceeds the aggregate of the then Outstanding Amount of Loans
under the U.S. Swingline Facility; and 

(iv)

the amount by which the Committed Amount in respect of the
Canadian Swingline Facility exceeds the aggregate of the then Outstanding Amount
of Loans under the Canadian Swingline Facility,

and multiplying the product thereby obtained by a fraction, the
numerator of which is the number of days elapsed in the immediately preceding
Quarter and the denominator of which is 360.  For greater certainty the
Commitment Fees in respect of each Swingline Facility shall be calculated
separately from each other and from all other Commitment Fees in accordance with
clause (b)(iii) or (b)(iv) above (and no Swingline Lender shall receive
Commitment Fees under clause (b)(iii) or (b)(iv) above on the portion of its
U.S. Revolving Commitment or Canadian Revolving Commitment relating to its U.S.
Swingline Facility Commitment or Canadian Swingline Facility Commitment, as
applicable).  The Commitment Fees shall commence accruing on the Closing Date
and shall be due and payable in arrears on the first Business Day following the
end of each Quarter (as well as on the Revolving Loan Maturity Date and, in the
case of any particular Facility the Commitments in respect of which shall have
been reduced to nil pursuant to Sections 2.7, 2.8, 3.6, 3.7 and 3.8, on the date
of such reduction) for the immediately preceding Quarter (or portion thereof),
beginning with the first of such dates to occur after the Closing Date.  For the
purposes of determining the Equivalent Amount in respect of any calculation used
in determining any Commitment Fees, such Equivalent Amount shall be, for each
month, the Equivalent Amount determined as at the first Business Day of such
month.

- 75 -

  3.10       
  Maturity of Facilities.

 

Provided that the Facilities have not previously been prepaid or
repaid in full or accelerated in accordance with Article 8, each Borrower shall
repay the principal amount of all Loans made to it outstanding under the
Relevant Facility, together with all accrued and unpaid interest thereon and all
other fees and other amounts payable by it hereunder or under any of the other
Credit Documents to the Administrative Agent on the Revolving Loan Maturity Date
or Term Loan Maturity Date, as the case may be.

  3.11       
  Computations of Interest.

 

It is the intent of the Lenders and the Obligors to conform to
and contract in strict compliance with applicable usury law from time to time in
effect.  All agreements between the Lenders and the Borrowers are hereby limited
by the provisions of this Section 3.11 which shall override and control all such
agreements, whether now existing or hereafter arising and whether written or
oral.  In no way, nor in any event or contingency (including prepayment or
acceleration of the maturity of any obligation), shall the interest taken,
reserved, contracted for, charged or received under this Agreement, under the
Notes or under any of the other Credit Documents exceed the maximum non-usurious
amount permissible under applicable law.  If, from any possible construction of
this Agreement or any of the other Credit Documents, interest would otherwise be
payable in excess of the maximum non-usurious amount, any such construction
shall be subject to the provisions of this Section 3.11 and such documents shall
be automatically amended to provide for the maximum non-usurious amount
permitted under applicable law, without the necessity of execution or delivery
of any amendment to any Credit Document or new document.  If any Lender shall
ever receive anything of value which is characterized as interest on the Loans
under applicable law and which would, apart from this Section 3.11, be in excess
of the maximum non-usurious lawful amount, an amount equal to the amount which
would have been excessive interest shall, without penalty, be automatically
applied to the reduction of the principal amount owing on the relevant Loans and
not to the payment of interest, after which the same (or any remaining balance
thereof) shall be applied to any other amount owed by the Relevant Borrower to
the Relevant Lender or to the Administrative Agent hereunder or under any other
Credit Document, after which the same (or any remaining balance thereof) shall
be refunded to the Relevant Borrower.  The right to demand payment of the Loans
or any other Indebtedness evidenced by any of the Credit Documents does not
include the right to receive any interest which has not otherwise accrued on the
date of such demand, and the Lenders do not intend to charge or receive any
unearned interest in the event of any such demand.  All interest paid or agreed
to be paid to the Lenders with respect to the Loans shall, to the extent
permitted by applicable law, be amortized, pro-rated, allocated and spread
throughout the full stated term (including any renewal or extension) of the
Loans so that the amount of interest on account of such Indebtedness does not
exceed the maximum non-usurious amount permitted by applicable law.

Without limiting the generality of the foregoing provisions of
this Section 3.11, the Canadian Borrower shall in no capacity and in no event be
obliged to make any payment of interest or any other amount payable to the
Relevant Lenders or any of them hereunder in excess of any amount or rate which
would be prohibited by law or would result in the receipt by the Relevant
Lenders or any of them of, or any agreement by the Relevant Lenders or any of
them to receive, ''interest'' at a ''criminal rate'' (as each such term is defined
in and construed under Section 347 of the Criminal Code (Canada)).

  3.12       
  Pro Rata Treatment.

 

Except in respect of each Swingline Facility and the L/C
Obligations (but subject to Sections 2.11(d) and 2.12(c), as applicable) and
except to the extent otherwise provided herein, each payment to be made to the
Administrative Agent for the account of the relevant Swingline Facility Lender
pursuant to Section 2.12(c) or the relevant Issuing Lender pursuant to
Section 2.11(d), each payment or prepayment 

- 76 -

of the principal amount of any Loan, each payment of fees (other than fees to be
paid to an Agent for its own account), each reduction of the Aggregate Committed
Amount, and each conversion or continuation of any Loan, shall be allocated
(subject to Section 3.8) pro rata among the Relevant Lenders in
accordance with their respective Commitment Percentages; provided that,
if any Relevant Lender shall have failed to advance its Commitment Percentage of
any Loan, then any amount to which such Lender would otherwise be entitled
pursuant to this Section 3.12 shall instead be payable to the Administrative
Agent for distribution to the other Relevant Lenders or to reimburse the
Administrative Agent in respect thereof or to the Administrative Agent for the
account of the Swingline Facility Lender pursuant to Section 2.12(c) or for the
account of the Issuing Lender pursuant to Section 2.11(d), until the Commitment
Percentage of such Loan not funded by such Defaulting Lender has been repaid in
full and provided further that if any amount paid to any Lender pursuant
to this Section 3.12 is not actually received by the Administrative Agent on the
due date therefor or is rescinded or must otherwise be returned by the
Administrative Agent or such Lender to the Relevant Borrower, such Lender shall,
upon the request of the Administrative Agent, repay to the Administrative Agent
the amount so paid to such Lender, with interest for the period commencing on
the date such payment was paid to such Lender by the Administrative Agent until
the date the Administrative Agent receives such repayment at a rate equal to,
during the period to but excluding the date two (2) Business Days after such
request:  (a) in the case of any U.S. Dollar obligation, the Federal Funds Rate
plus 200 basis points and thereafter the U.S. Base Rate plus 200 basis points;
(b) in the case of any Canadian Dollar obligation, the Bank of Canada Overnight
Rate plus 200 basis points, and thereafter the Canadian Prime Rate plus 200
basis points; and (c) in the case of any Euro obligation, the Canadian Prime
Rate plus 200 basis points.  The Administrative Agent, upon receipt of any such
amount and interest thereon to be paid to a Relevant Lender, shall promptly pay
such amount to the Relevant Lender by depositing the same in the Relevant
Lender's Account, and such Relevant Lender agrees to accept the interest paid on
any such amount, calculated as aforesaid, in full satisfaction of any claim by
it for, on account, in lieu of or in satisfaction of interest on such amount.

  3.13       
  Sharing of Payments.

 

The Lenders each respectively agree among themselves that, except
in respect of each Swingline Facility (but subject to Section 2.12(c)) and the
L/C Obligations (but subject to Section 2.11(d)), and except to the
extent otherwise provided herein, in the event that any Relevant Lender, or any
other Person to which any such Lender shall have sold a participation in
accordance with Section 11.3(c), shall obtain any payment in respect of any
Loan, or any other obligation owing to such Relevant Lender under this Agreement
through the exercise of a right of set-off, recoupment, combination of accounts,
banker's lien or counterclaim, or pursuant to a secured claim under Section 506
of the U.S. Bankruptcy Code or other security or interest arising from,
or in lieu of, any such claim, received by such Lender or participant under any
Applicable Insolvency Law or otherwise, or by any other means, in excess of its
pro rata share of such payment as provided for in this Agreement,
such Lender or participant shall promptly pay in cash or purchase from the other
Relevant Lenders in the Relevant Facility a participation (an ''Adjusting
Participation'') in the Loans and other obligations owed to such other
Relevant Lenders in such amounts, and make such other adjustments from time to
time, as shall be equitable to the end that all Relevant Lenders in the Relevant
Facility share any such payment, recovery or recoupment in accordance with their
respective Commitment Percentages as provided for in this Agreement.  The
Relevant Lenders further agree among themselves that if any payment to any such
Relevant Lender or participant obtained by such Lender or participant through
the exercise of any right of set-off, recoupment, combination of accounts,
banker's lien, counterclaim or other claim as aforesaid shall be rescinded or
must otherwise be restored, each Relevant Lender or participant which shall have
shared the benefit of such payment shall, by payment in cash or a repurchase of
a participation heretofore sold, return its share of that benefit (together with
its share of any accrued interest payable with respect thereto) to each Relevant
Lender whose payment shall have been rescinded or otherwise restored.  The
Relevant Borrower agrees that any Relevant Lender so purchasing an Adjusting
Participation may, to the fullest extent permitted 

- 77 -

by law, exercise all rights of payment, including set-off, recoupment,
combination of accounts, banker's lien or counterclaim, with respect to such
Adjusting Participation as fully as if such Relevant Lender were a holder of
such Loan or other obligation in the amount of such Adjusting Participation.
 Except as otherwise expressly provided in this Agreement, if any Relevant
Lender or participant or the Administrative Agent shall fail to remit to the
Administrative Agent or any other Relevant Lender an amount payable by such
Lender or participant or the Administrative Agent to the Administrative Agent or
such other Lender or participant pursuant to this Agreement on the date when
such amount is due, such payment shall be made together with interest thereon
from the date such amount is due until the date such amount is paid to the
Administrative Agent or such other Lender or participant at a rate per 
annum equal to (a) the Federal Funds Rate plus 200 basis points, in the case
of any U.S. Dollar obligation, (b) the Bank of Canada Overnight Rate plus 200
basis points, in the case of any Canadian Dollar obligation, and (c) the Bank of
Canada Overnight Rate plus 200 basis points, in the case of any Euro obligation.
 If under any Applicable Insolvency Law, any Relevant Lender or participant
receives a secured claim in lieu of a set-off or other claim to which this
Section 3.13 applies, such Lender or participant shall, to the extent
practicable, exercise its rights in respect of such secured claim in a manner
consistent with the rights of the other Relevant Lenders under this Section 3.13
to share in the benefits of any recovery on such secured claim.

  3.14       
  Capital Adequacy.

 

If (a) the adoption or effectiveness after the Effective Date of,
or any change after the Effective Date in, any applicable law, rule or
regulation regarding capital adequacy, or any change after the Effective Date by
any Governmental Authority (including any central bank or comparable agency)
charged with the interpretation or administration thereof in the interpretation
or administration of any applicable law, rule or regulation regarding capital
adequacy, or (b) compliance by any Relevant Lender or its parent with any
direction, request or requirement regarding capital adequacy (whether or not
having the force of law) of any Governmental Authority (including any central
bank or comparable agency), has or would have the effect of reducing the rate of
return on such Lender's (or parent's) capital or assets as a consequence of its
commitments or obligations hereunder otherwise than as a result of Taxes to a
level below that which such Lender, or its parent, could have achieved but for
such adoption, effectiveness, change or compliance (taking into consideration
such Lender's (or parent's) policies with respect to capital adequacy), then
such Lender or Lenders shall give prompt written notice thereof (setting forth
the computations in reasonable detail) to the Administrative Agent and the
Administrative Agent shall give prompt written notice thereof to the Relevant
Borrower, and such Borrower shall be obligated to pay to each such Lender such
additional amount or amounts as will compensate such Lender on an after-tax
basis (after taking into account applicable deductions and credits in respect of
the amount indemnified) for such reduction.  Each determination by any such
Lender of any amount owing under this Section 3.14 shall, absent manifest error,
be conclusive and binding on the parties hereto.  Any Lender entitled to a
payment under this Section 3.14 shall, in conjunction with the notice referred
to above, provide to the Relevant Borrower a photocopy of the relevant law,
rule, guideline, regulation, treaty or directive.  The Lender shall, at the
written request of the Relevant Borrower, take such steps as the Lender, in its
sole discretion, deems appropriate and not detrimental to its interests, and
subject to payment of all expenses (including internal chargeout rates) and
indemnification satisfactory to the Lender, to limit the incidence of any amount
payable under this Section 3.14.  Notwithstanding anything else to the contrary
in this Section 3.14, no Borrower is under any obligation to compensate any
Lender or Issuing Lender under this Section 3.14 with respect to increased costs
or reductions with respect to any period prior to the date that is 180 days
prior to such request if such Lender or Issuing Lender knew or could reasonably
have been expected to know of the circumstances giving rise to such increased
costs or reductions and of the fact that such circumstances would result in a
claim for increased compensation by reason of such increased costs or
reductions; provided that the foregoing limitation does not apply
to any increased costs or reductions arising out of the retroactive application
of any change in law within such 180-day period.

- 78 -

  3.15       
  Illegality.

 

Notwithstanding any other provision hereof, if the adoption of or
any change in any Requirement of Law or in the interpretation or application
thereof occurring after the Closing Date shall make it unlawful for any Lender
to make, fund or maintain all or any portion of a Loan or to give effect to such
Lender's obligations in respect of all or any portion of an outstanding Loan as
contemplated by this Agreement, (a) such Lender shall promptly give notice of
such circumstances to the Relevant Borrower and the Administrative Agent (which
notice shall be withdrawn by further notice to such Persons whenever such
circumstances no longer exist), and (b) the commitment of such Lender hereunder
to make such Loan shall promptly be cancelled and, until such time as it shall
no longer be unlawful for such Lender to make or maintain such Loan, such Lender
shall then have a commitment only to make Loans hereunder of a type which are
not prohibited and such prohibited Loan shall convert into a type of Loan into
which it is otherwise convertible and which is not prohibited (on the last day
of each then current Interest Period with respect to any such outstanding Fixed
Rate Loan, or within such earlier period as required by law).  If any such
conversion of a Fixed Rate Loan occurs on a day which is not the last day of the
then current Interest Period with respect thereto, the Relevant Borrower shall
pay to such Relevant Lender such amounts, if any, as may be required pursuant to
Section 3.19.

  3.16       
  Reserve Requirements.

 

If the adoption of or any change in any Requirement of Law or in
the interpretation or application thereof applicable to any Relevant Lender, or
compliance by any Relevant Lender with any request or directive (whether or not
having the force of law) from any central bank or other Governmental Authority
(each such event, a ''Legal or Regulatory Change''), in each case made
subsequent to the Closing Date:

(a)

shall subject such Lender to any Taxes or change the basis of
taxation of such Lender except for (i) Indemnified Taxes grossed up or
indemnified under Section 3.17 (including Indemnified Taxes that would have been
grossed up or indemnified but for any failure of such Lender to comply with its
obligations under, or such Lender being expressly disentitled from a gross-up or
indemnity by virtue of Section 3.17(c) or (d)) or (ii) Excluded Taxes to which
such Lender is subject;

(b)

shall impose, modify or hold applicable any reserve (other than
any reserve related to the LIBOR Reserve Percentage or the EUROLIBOR Reserve
Percentage), special deposit, compulsory loan or similar requirement against any
asset held by, deposit or other liability in or for the account of, advance,
loan or other extension of credit by, or any other acquisition of funds by, any
office of such Lender which is not otherwise included in the determination of a
rate hereunder; or

(c)

shall impose on such Lender any other condition (excluding any
Taxes and any matter referred to in Section 3.15);

and the result of any of the foregoing is to increase the cost to
such Lender, by an amount which such Lender, acting reasonably, deems to be
material, of making, converting into, continuing or maintaining any Loan or to
reduce any amount receivable hereunder in respect thereof, then, in any such
case, upon notice to the Relevant Borrower and the Administrative Agent, by such
Lender, the Relevant Borrower shall be obligated to promptly pay such Lender,
upon its demand, any additional amounts necessary to compensate such Lender on
an after-tax basis (after taking into account applicable deductions and credits
in respect of the amount indemnified) for such increased cost or reduced amount
receivable; provided, however, that a party that becomes a Lender
after the Closing Date shall be entitled to no greater payment 

- 79 -

under this Section 3.16 than the transferor would have been entitled to receive
had no transfer taken place, except to the extent that the entitlement to a
greater payment results from a Legal or Regulatory Change occurring after such
party becomes a Lender.  If any Relevant Lender becomes entitled to claim any
additional amounts pursuant to this Section 3.16, it shall provide prompt notice
thereof to the Relevant Borrower and the Administrative Agent, certifying (i) that
one of the events described in this Section 3.16 has occurred and describing in
reasonable detail the nature of such event, (ii) as to the increased cost or
reduced amount resulting from such event and (iii) as to the additional amount
demanded by such Lender and a reasonably detailed explanation of the calculation
thereof.  Such a certificate as to any additional amounts payable pursuant to
this Section 3.16 submitted by any such Lender shall be conclusive evidence of
such additional amounts (absent manifest error).  Any Lender entitled to a
payment under this Section 3.16 shall, in conjunction with the notice referred
to above, provide to the Relevant Borrower a photocopy of the relevant law,
rule, guideline, regulation, treaty or directive.  Such Lender shall, at the
written request of the Relevant Borrower, take such steps as such Lender, in its
sole discretion, deems appropriate and not detrimental to its interests and
subject to payment of all expenses (including internal chargeout rates) and
indemnification satisfactory to such Lender, to limit the incidence of any
amount payable under this Section 3.16, including seeking recovery for the
account of the Relevant Borrower, by appealing any assessment.  This covenant
shall survive the termination of this Agreement and the payment of the Loans and
all other amounts payable hereunder.

  3.17       
  Taxes.

 

(a)

All payments by any Obligor of principal of, and interest on, the
Loans and all other amounts payable hereunder shall be made free and clear of
and without deduction for any Indemnified Taxes of any nature whatsoever imposed
by any taxing authority on the Administrative Agent, any Issuing Lender or any
Lender (or any assignee of such Lender or Issuing Lender, as the case may be, or
a change in designation of the lending office of a Lender or an Issuing Lender,
as the case may be (a ''Transferee'')), unless required by applicable law,
rule or regulation or the interpretation thereof by the relevant taxing
authority.  In the event that any withholding or deduction from any payment to
be made by any Obligor hereunder is required in respect of any Indemnified Taxes
pursuant to any applicable law, rule or regulation or the interpretation thereof
by the relevant authority, then the Obligor will: 

(i)

timely pay directly to the relevant taxing authority the full
amount required to be so withheld or deducted;

(ii)

promptly forward to the Administrative Agent an official receipt
or other documentation reasonably satisfactory to the Administrative Agent
evidencing such payment to such authority; and

(iii)

pay to the Administrative Agent for its account or the account of
any Issuing Lender, any Lender or any Transferee, as the case may be, such
additional amount or amounts as are necessary to ensure that the net amount
actually received by each such Person will equal the full amount such Person
would have received had no such withholding or deduction been required.

Moreover, if any Indemnified Taxes are directly asserted against
the Administrative Agent, any Issuing Lender or any Lender or Transferee, each
Obligor will indemnify and hold harmless the Administrative Agent, Issuing
Lender, Lender or Transferee (as the case may be) from all such Indemnified
Taxes (and all reasonable expenses related thereto), whether or not such
Indemnified Taxes were correctly asserted.

- 80 -

                               (b)

Each Obligor will timely pay and indemnify and hold harmless the
Administrative Agent, Issuing Lender, Lender or Transferee (as the case may be)
from all Other Taxes (and all reasonable expenses related thereto) whether or
not such Other Taxes were correctly asserted.

(c)

Each Lender or Transferee that is a U.S. Revolving Lender and
that is organized under the laws of a jurisdiction other than the United States
of America or any state or political subdivision thereof shall, on or prior to
the Effective Date (in the case of each such Lender that is a party hereto on
the Effective Date) or on or prior to the date of any assignment, participation
or change in the designated lending office hereunder (in the case of a
Transferee) and thereafter as reasonably requested from time to time by the U.S.
Revolving Borrower or the Administrative Agent, execute and deliver, if legally
able to do so, to the U.S. Revolving Borrower and the Administrative Agent one
or more (as the U.S. Revolving Borrower or the Administrative Agent may
reasonably request) United States Internal Revenue Service Forms W-8BEN or
W-8ECI or such other forms or documents (or successor forms or documents),
appropriately completed, as may be applicable and determined by the U.S.
Revolving Borrower to be reasonably satisfactory to establish the extent, if
any, to which a payment to such Lender or Transferee is exempt from or entitled
to a reduced rate of withholding or deduction of Indemnified Taxes imposed by
the United States.

(d)

No Obligor shall be required to indemnify or to pay any
additional amounts to the Administrative Agent, any Issuing Lender, any Lender
or Transferee, as the case may be, with respect to any Indemnified Taxes (A)
imposed by the United States with respect to the U.S. Revolving Facility or (B)
imposed by Canada with respect to the Canadian Revolving Facility pursuant to
Section 3.17(a) to the extent that such Indemnified Tax results from any
obligation to withhold, deduct or pay amounts with respect to such Indemnified
Tax that existed on the date the Administrative Agent, the Issuing Lender, such
Lender or Transferee became a party to this Agreement or otherwise becomes a
Transferee (except where such Issuing Lender or Transferee became a party to
this Agreement (or designated a new lending office) at the request of any
Obligor, during the continuance of an Event of Default or as a result of any
Legal or Regulatory Change); provided, however, that in the case
of a Transferee, the foregoing shall apply only to the extent that the rate of
such Indemnified Tax exceeds the rate of Indemnified Tax in respect of which the
Obligor was required to pay an additional amount or otherwise indemnify the
Lender or Transferee from whom the Transferee acquired its interest immediately
prior to such transfer.  No Obligor shall be required to indemnify or pay any
additional amounts to the Administrative Agent, any Issuing Lender, any Lender
or Transferee, as the case may be, with respect to any Indemnified Taxes
pursuant to Section 3.17(a) to the extent that such Indemnified Tax results from
a failure by the Administrative Agent, any Issuing Lender, Lender or Transferee,
as the case may be, to comply with the provisions of clause (c) or any other
certification, identification, information, documentation or other reporting
requirement if compliance is required by law, regulation, administrative
practice or any applicable tax treaty as a precondition to exemption from or a
reduction in the rate of deduction or withholding of Indemnified Taxes, but only
to the extent that the Administrative Agent, any Issuing Lender, Lender or
Transferee, as the case may be, was legally entitled to comply; provided,
however, that the Administrative Agent, any Issuing Lender, Lender or
Transferee, as the case may be, shall have no obligation under this clause (d)
with respect to any Indemnified Taxes imposed by any jurisdiction other than the
United States or Canada if in the reasonable judgment of such Person such
compliance would subject such Person to any material unreimbursed cost or
out-of-pocket expense or would otherwise be disadvantageous to such Person in
any material respect.  No Obligor shall be required to indemnify or pay any
additional amounts to the Administrative Agent, any Issuing Lender, any Lender
or Transferee, as the case may be, with respect to any Indemnified Taxes
pursuant to Section 3.17(a) to the extent that (i) in the case of the New Term
Facility, such Indemnified Tax is imposed by Canada and the Administrative Agent
or such Issuing Lender, Lender or Transferee does not deal at arm's length with
the relevant Obligor for purposes of the Income Tax Act (Canada), or
(ii) in the case of the Canadian Revolving Facility, such Indemnified Tax is
imposed by Canada and the Administrative Agent, or such Issuing Lender, Lender
or Transferee is not a Canadian 

- 81 -

Resident, but only to the extent that the rate of such Indemnified Taxes on such
non-Canadian Resident exceeds the highest rate of such Indemnified Taxes that
applied to any transferor of such non-Canadian Resident (or any direct or
indirect transferor of such transferor) while it was a Canadian Resident or
immediately after it ceased to be a Canadian Resident because of a Legal or
Regulatory Change.

(e)

If the Administrative Agent, any Issuing Lender, any Lender or
any Transferee determines in its sole discretion that it has received a refund
of any Indemnified Taxes as to which it has been indemnified by any Obligor or
with respect to which any Obligor has paid additional amounts pursuant to this
Section 3.17, it shall pay over such refund to the Obligor (to the extent of
indemnity payments made, or additional amounts paid, by the Obligor under this
Section 3.17 with respect to Indemnified Taxes giving rise to such refund), net
of all out-of-pocket expenses (including, without limitation, any Taxes
attributable to such refund) of such Person and without interest (other than any
interest paid by the relevant taxing authority with respect to such refund (net
of any Taxes attributable to such interest)); provided that each Obligor,
upon request of the Administrative Agent or any Issuing Lender, Lender or
Transferee (the ''Requesting Lender''), agrees to repay within 10 days
after receiving such request, the amount paid over to such Obligor (plus any
penalties, interest or other charges imposed by the relevant Governmental
Authority) to such Requesting Lender in the event the Requesting Lender is
required to repay such refund to the relevant Governmental Authority.  This
Section 3.17 shall not be construed to require the Administrative Agent or any
Issuing Lender, Lender or Transferee to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to any
Obligor or any other Person.

  3.18       
  Mitigation Obligations; Replacement of Lenders.

 

(a)

Mitigation of Obligations.  If any
Lender requests compensation under Section 3.16 or if a Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 3.15 or Section 3.17, 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 reasonable judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 3.15, 3.16 or 3.17, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender.  Each
Borrower hereby agrees to pay all reasonable costs and out-of-pocket expenses
incurred by any Lender in connection with any such designation or assignment.

(b)

Replacement of Lenders.  If any
Lender requests compensation under Section 3.16, or if a Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 3.15 or 3.17, or if any Lender
defaults in its obligation to fund Loans hereunder, then the Borrowers may, at
their 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 Section 11.3), all
of its interests, rights and obligations under this Agreement to an assignee
selected by the Borrowers that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that (i) the
Borrowers shall have received the prior written consent of the Administrative
Agent (and, if a Commitment related to a Revolving Facility is being assigned,
the relevant Issuing Lender and relevant Swingline Facility Lender), which
consent shall not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and L/C
Interests and Swingline Facility Loans, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder, including Section 3.17 (assuming
for this purpose that the Loans of such Lender were being prepaid), from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrowers (in the case of all other amounts) and (iii) in the case
of any such assignment resulting from a 

- 82 -

claim for compensation under Section 3.15, or payments required to be made
pursuant to Section 3.17, such assignment will result in a material reduction in
such compensation or payments.  A Lender shall not be required to make any such
assignment and delegation if, prior thereto, as a result of a waiver by such
Lender or otherwise, the circumstances entitling the Borrowers to require such
assignment and delegation cease to apply.

  3.19       
  Indemnity Regarding LIBOR Loans and EUROLIBOR Loans.

 

Each Borrower promises to indemnify each Relevant Lender and each
Borrower agrees to hold each such Lender harmless from and against, any loss or
expense which such Lender may suffer, sustain or incur (other than through such
Lender's gross negligence or willful misconduct) as a consequence of (a) any
default by any such Borrower in making a borrowing of, conversion into or
continuation of any LIBOR Loan or EUROLIBOR Loan after the Relevant Borrower has
given notice thereof in accordance with the provisions of this Agreement,
(b) any default by any Borrower in making any prepayment of any LIBOR Loan or
EUROLIBOR Loan after such Borrower has given notice of its intention to make any
such prepayment in accordance with the provisions of this Agreement and (c) the
making of a prepayment of any LIBOR Loan or EUROLIBOR Loan on a day which is not
the last day of an Interest Period with respect thereto, whether or not
voluntary on the part of such Borrower.  Such indemnification shall include an
amount equal to (i) the amount of interest which would have accrued on the
amount so prepaid, or not so borrowed, converted or continued, for the period
from the date of such prepayment or of such failure to so borrow, convert or
continue to the last day of the applicable Interest Period (or, in the case of a
failure to so borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such LIBOR Loan or EUROLIBOR Loan provided for herein (excluding,
however, the Applicable Margin applicable thereto) minus the amount of interest
(as reasonably determined by the Relevant Lender) which would have accrued to
such Lender on such amount by placing such amount on deposit for a comparable
period with one or more leading banks in the London interbank market.  The
agreements in this Section 3.19 shall survive the termination of this Agreement
and the payment of the Loans and all other amounts payable hereunder.

  3.20       
  Compliance with the Interest Act (Canada).

 

For the purposes of this Agreement, whenever any interest is
calculated on the basis of a period of time other than a calendar year, the
annual rate of interest to which such rate of interest determined pursuant to
such calculation is equivalent for the purposes of the Interest Act 
(Canada) is such rate as so determined multiplied by the actual number of days
in the calendar year in which the same is to be ascertained and divided by the
number of days used as the basis of such calculation.

- 83 -

ARTICLE 4

CONDITIONS PRECEDENT

  4.1       
  Conditions to Effectiveness of Original Credit Agreement.

 

The effectiveness of the Original Credit Agreement was subject to
the satisfaction (or waiver) of the conditions precedent set forth in Section
4.1 of the Original Credit Agreement (the date of the satisfaction (or waiver)
of each of such conditions, the ''Effective Date'').  The text thereof is
not included herein for economy of documentation; reference is made to the
Original Credit Agreement for the text of Section 4.1.

  4.2       
  Conditions to Initial Extension of Credit Under Original Credit Agreement.

 

The obligation of the Lenders to make Extensions of Credit under
the Original Credit Agreement was subject to the satisfaction (or waiver) of the
condition precedent that the Effective Date had occurred not more than five
Business Days prior thereto (or occurred simultaneously therewith) and to the
satisfaction (or waiver) of additional conditions precedent set forth in Section
4.2 of the Original Credit Agreement on the Closing Date.  The text thereof is
not included herein for economy of documentation; reference is made to the
Original Credit Agreement for the text of Section 4.2.

4.3A       Conditions to
Effectiveness.

 

The effectiveness of this Agreement is subject to the
satisfaction (or waiver) of the following conditions precedent (the date, which
shall be a Business Day, of the satisfaction (or waiver) of each of the
following conditions, the ''Amendment Effective Date''):

(a)

Executed Credit Documents.  The Lead
Arrangers shall have received a copy of this Agreement, duly executed by each
Person party hereto on the Amendment Effective Date, with executed counterparts
of the signature pages hereto in such quantity as the Lead Arrangers shall
reasonably request.

(b)

Constitutional Documents; Additional Documents.
 The Lead Arrangers shall have received each of the following documents with
respect to each Obligor, certified (other than those referred to in clause (iv)
below) by a senior officer of such Obligor to be true, complete and correct and
in full force and effect, unamended, as of the Amendment Effective Date:

(i)

Organizational Documents.  Copies of
the Organizational Documents of each Obligor to the extent not previously
delivered;

(ii)

Incumbency.  An incumbency
certificate in respect of each Obligor to the extent not previously delivered.

(iii)

Resolutions.  Copies of resolutions
of the shareholders and/or the board of directors or partners, as applicable, of
each Obligor of its obligations under the Credit Documents to which it is a
party and the transactions contemplated therein and of the related intercompany
transactions to be consummated in connection with the Amendment Effective Date,
and authorizing the execution and delivery thereof; and

(iv)

Good Standing.  Copies of
certificates of good standing, status, compliance, existence or qualification to
carry on business or their equivalent with respect to each Obligor to the extent
not previously delivered, certified as of a recent date prior to 

- 84 -

  the Effective Date by the appropriate Governmental Authority of the country,
  province, state or other jurisdiction of formation, incorporation,
  amalgamation or continuation, as the case may be.

(c)

Fees and Expenses.  The Agent Fee
Letter shall be in full force and effect, and the Obligors shall have paid all
fees and expenses, including reasonable legal fees and disbursements of Lead
Arrangers' Counsel, then owing by them to the Lenders and the Agents or any of
them.

(d)

Repayment of Term Facilities.  The
Lead Arrangers shall have received evidence reasonably satisfactory to them of
the repayment in full of amounts outstanding under the Canadian Term Facility
and the U.S. Term Facility under the Original Credit Agreement, together with
interest and fees and all other Obligations under the Credit Documents related
thereto.

(e)

Documentation and Evidence of Certain Matters.
 The Lead Arrangers shall have received each of the following documents, each
duly executed where appropriate (with executed counterparts of the signature
pages thereto in such quantity as the Lead Arrangers shall reasonably request),
and each of which shall be reasonably satisfactory to the Administrative Agent
in form and substance:

(i)

Officer's Certificates.  A
certificate of the Canadian Borrower executed by the chief financial officer of
the Canadian Borrower dated as of the Amendment Effective Date and stating that,
immediately after giving effect to this Agreement and the other Credit Documents
and the transactions contemplated therein (if any) to occur on the Amendment
Effective Date, all representations and warranties contained herein and in the
other Credit Documents are true and correct in all material respects (except to
the extent any such representation or warranty is by its terms already qualified
as to materiality, in which case such representation or warranty shall be true
and correct), including all Extensions of Credit.

(ii)

Opinions of Counsel.  Opinions of
each of Ropes & Gray LLP, special U.S. counsel to the Obligors, Osler, Hoskin &
Harcourt LLP, special Canadian counsel to the Obligors, and each other counsel
to the Obligors set forth on Schedule 4.3A(e)(ii), in each case as to
such matters as the Lead Arrangers may reasonably require, including as to
Mortgages.

(iii)

Notes.  The Notes evidencing the New
Term Commitment duly completed and executed for each Lender that has requested
Notes prior to the Amendment Effective Date.

(iv)

Other Documents.  The Lenders shall
have received such other customary legal opinions, corporate documents and other
instruments and/or certificates as they may reasonably request.

(f)

Payment of Fees and Expenses.  All
accrued and unpaid fees and expenses (including the reasonable fees and expenses
of Lead Arrangers' Counsel) in connection with the Credit Documents shall have
been paid.  All fees to be paid in connection with the Amendment Fee Letter
shall have been paid.

(g)

U.S. Collateral.  The Lead Arrangers
shall have received each of the following documents with respect to Collateral
located in the United States:

- 85 -

                     
(i)

Mortgage Amendments.  With respect
to each Mortgage executed prior to the Amendment Effective Date, a Mortgage
Amendment substantially in the form of Exhibit P (each, a ''Mortgage
Amendment'') duly executed and acknowledged by the applicable Obligor, and
otherwise in form for recording in the recording office where each such Mortgage
was recorded, together with such certificates, affidavits, questionnaires or
returns as shall be required in connection with the recording or filing thereof
under applicable law, all of which shall be in form and substance reasonably
satisfactory to the Administrative Agent.  The foregoing requirement for
Mortgage Amendments shall not be a condition to the effectiveness of this
Agreement on the Amendment Effective Date with respect to the Mortgages on the
properties located at (i) 6545 US 1, Grant, Florida, (ii) 1111 J-A Bombardier
Boulevard, SW, Palm Bay, Florida and (iii) 1211 Greenwood Road, Spruce Pine, NC
(each, an ''Excluded Mortgaged Real Property'').

(ii)

Title Insurance Policies.  With
respect to each Mortgage Amendment, a copy of the existing mortgage title
insurance policy and an endorsement with respect thereto (each, a ''Mortgage
Policy'') relating to the Mortgage encumbering such Mortgaged Real Property
assuring the Administrative Agent that the Mortgage, as amended by the Mortgage
Amendment, is a valid and enforceable first priority lien on such Mortgaged Real
Property in favor of the Administrative Agent for the benefit of the Secured
Parties free and clear of all defects and encumbrances and liens except Prior
Liens (as defined in the applicable Mortgage), and such Mortgage Policy shall
otherwise be in form and substance reasonably satisfactory to the Administrative
Agent.  The foregoing requirement for Mortgage Policies shall not be a condition
to the effectiveness of this Agreement on the Amendment Effective Date with
respect to the Excluded Mortgaged Real Properties.

(iii)

Other Security Documents.  The U.S.
Security Agreement as amended and restated as of the Amendment Effective Date,
UCC Financing Statements (Form UCC-1), financing statements under any other
applicable law, rule or regulation and such other security pledge agreements
required under local law in the judgment of Lead Arrangers' Counsel and
requested reasonably in advance of the intended Amendment Effective Date, each
of which shall be in full force and effect, and in each case duly authorized,
executed and delivered and registered, filed or recorded (if applicable) by each
U.S. Obligor and the Administrative Agent.

(h)

Canadian Collateral.  The
Administrative Agent shall have received each of the following documents with
respect to Collateral located in Canada or owned by a Person having a principal
place of business, chief executive office or domicile in Canada:

(i)

Security Documents.  The Canadian
Security Agreement as amended and restated as of the Amendment Effective Date
and such other pledge agreements required under Canadian or applicable
provincial law in the judgment of Lead Arrangers' Counsel and requested
reasonably in advance of the intended Amendment Effective Date, each of which
shall be in full force and effect, and in each case duly authorized, executed
and delivered by each Canadian Obligor and the Administrative Agent.

  
  4.3B        Conditions to
  All Extensions of Credit.

 

In addition to the conditions precedent set forth in this
Agreement stated elsewhere herein, including Section 4.3A (in respect of the
Extensions of Credit made on the Amendment Effective Date), the obligation of
the Lenders to make any Extension of Credit hereunder is subject to the
satisfaction 

- 86 -

(or waiver) of the following additional conditions precedent, except that
clause 4.3B(b) shall not apply to the continuation or conversion of Loans:

(i)

Notice of Borrowing.  The Relevant
Borrower requesting such Extension of Credit shall have delivered a Notice of
Borrowing or Notice of Continuation/Conversion, as applicable, duly executed and
completed, to the Administrative Agent in accordance with Section 2.4 or 3.2, as
applicable;

(j)

Representations and Warranties.  The
representations and warranties made by the Obligors in each of the Credit
Documents shall be true and correct in all material respects (except to the
extent any such representation or warranty is by its terms already qualified as
to materiality, in which case such representation or warranty shall be true and
correct) at and as if made as of the date of any such Notice of Borrowing and as
of the intended Extension Date, except to the extent they expressly relate only
to, and were true and correct in all material respects (except to the extent any
such representation or warranty is by its terms already qualified as to
materiality, in which case such representation or warranty shall be true and
correct) on, an earlier date specified therein;

(k)

No Default.  No Default or Event of
Default shall exist or be continuing either prior to or immediately after giving
effect to the requested Extension of Credit;

(l)

Availability.  Immediately after
giving effect to the making of any Extension of Credit (and the application of
the proceeds thereof), the Outstanding Amount under the Relevant Facility shall
not exceed the Committed Amount in respect of the Relevant Facility; and

(m)

Payment of All Indebtedness Due.
 The Obligors shall have paid in full all amounts (whether in respect of the
principal of or interest on any Loan theretofore made, any fee payable
hereunder, any cost or expense to be reimbursed to any Lender or Agent or
otherwise) theretofore due and payable by any of the Obligors under or pursuant
to any of the Credit Documents.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES

Each Obligor, jointly and severally, hereby represents and
warrants to the Agents and the Lenders that:

  5.1       
  Financial Condition.

 

The financial statements and reports that have been delivered to
the Lenders pursuant to Section 4.2 of the Original Credit Agreement and
Sections 6.1(a) and 6.1(b), as applicable, (a) have been prepared (except as
referred to in such sections) in accordance with GAAP; and (b) present fairly in
all material respects the combined and combining (as applicable) financial
condition, results of operations and cash flows of the Canadian Borrower and its
Subsidiaries as of the respective dates thereof and for the respective periods
covered thereby, subject to normal year-end audit adjustments.  There has been
no change in the financial condition of the Canadian Borrower or its
Subsidiaries since the date of the most recent audited financial statements of
the Canadian Borrower that, individually or in the aggregate, has had or could
reasonably be expected to have a Material Adverse Effect.

- 87 -

  5.2       
  Organization and Good Standing.

 

Except as permitted by this Agreement, each of the Obligors and
their respective Subsidiaries:  (a) is a corporation or other entity duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization, and is duly qualified as a
foreign corporation or other entity and in good standing under the laws of each
jurisdiction where its ownership or lease of property or the conduct of its
business requires such qualification (except for jurisdictions in which such
failure to so qualify or to be in good standing, individually or in the
aggregate, has not had and could not reasonably be expected to have a Material
Adverse Effect); (b) has the requisite corporate or organizational power and
authority and the legal right to own and operate its properties and (except as
set forth in Schedule 5.13) create a Lien thereon, to lease the property
it operates under Lease, and to conduct its business as now, heretofore and as
proposed to be conducted; and (c) is in compliance with its Organizational
Documents.

  5.3       
  Due Authorization.

 

Each Obligor has all necessary corporate, partnership or other
organizational power, authority and legal right to execute, deliver and perform
its obligations under each Credit Document and each other Transaction Document
to which it is a party and to consummate the transactions herein and therein
contemplated, including borrowings under the New Term Facility; the execution,
delivery and performance by each Obligor of each Transaction Document to which
it is a party and the consummation of the transactions herein and therein
contemplated have been duly authorized by all necessary corporate, partnership
or other organizational action on its part; and this Agreement has been, and the
other Transaction Documents have been, or when executed and delivered will be,
duly and validly executed and delivered by such Obligor and constitute, and each
of the Notes to which it is a party when executed and delivered by such Obligor
(in the case of the Notes, for value) will constitute, its legal, valid and
binding obligation, enforceable against such Obligor in accordance with their
respective terms, except as such enforceability may be limited by (a) Applicable
Insolvency Laws and (b) the application of general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).

  5.4       
  No Conflicts.

 

Neither the execution and delivery of any of the Transaction
Documents, nor the consummation of the transactions herein and therein
contemplated, nor performance of and compliance with the terms and provisions
herein and thereof, by any Obligor will (a) violate or conflict with any
provision of its Organizational Documents, (b) violate, contravene or materially
conflict with any Requirement of Law or any order, writ, judgment, injunction,
decree or permit applicable to it the violation of which, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect,
(c) violate, contravene or breach any contractual provisions of, or cause any
event of default under, any Material Contract or any other indenture, loan
agreement, mortgage, deed of trust, contract or other agreement or instrument to
which it is a party or by which it or any of its properties is bound, the
violation of which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect, or (d) result in or require the
creation of any Lien (other than any Permitted Lien) upon or with respect to any
of its properties.

  5.5       
  Consents.

 

As of the Closing Date, no consent, approval, authorization or
order of, or filing, registration or qualification with, any Governmental
Authority or third party in respect of any Obligor (other than filings or
registrations in respect of Security Documents) is required in connection with
the execution, delivery or observance or performance of this Agreement or any of
the other Transaction Documents by 

- 88 -

such Obligor, except those that have been obtained or the failure of which to
obtain could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

  5.6       
  No Default.

 

No Obligor or any of its Subsidiaries is in default in any
respect of or under any contract, Lease, loan agreement, indenture, mortgage,
security agreement or other agreement (including any Material Contract, other
than the Credit Documents) or obligation to which it is a party or by which any
of its properties is bound which default, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.  Each Material
Contract is in full force and effect.  No Default or Event of Default has
occurred or exists except as previously disclosed in writing to the
Administrative Agent pursuant to and in accordance with Section 6.1(h)(ii).

  5.7       
  Ownership.

 

Each Obligor has good and marketable title to all of the material
Property (other than Intellectual Property) owned by it (except insofar as
marketability may be limited by any laws or regulations of any Governmental
Authority affecting such assets), and all such assets and Property are free and
clear of all Liens except Liens permitted under Section 7.2.  Substantially all
of the assets and Property owned by, leased to or used by each Obligor in its
business are in good operating condition and repair, ordinary wear and tear
excepted, are free and clear of any known defects except such defects as do not
substantially interfere with the continued use thereof in the conduct of normal
operations, and are able to serve the function for which they are currently
being used, except in each case where the failure of such asset to meet such
requirements, individually or in the aggregate, has not had and could not
reasonably be expected to have a Material Adverse Effect.  No Transaction
Document and no transaction contemplated under any such document will affect any
right, title or interest of any Obligor in or to any of such assets in a manner
that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

  5.8       
  Indebtedness.

 

No Obligor has any Indebtedness except Permitted Indebtedness.

  5.9       
  Litigation.

 

Except as set forth in Schedule 5.9, there is no
Proceeding pending against or, to the knowledge of the Obligors, threatened
against any Obligor or any of its Properties before any Governmental Authority
or private arbitrator that (i) individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect or (ii) may challenge
the validity or enforceability of any of the Transaction Documents.

  5.10       
  Taxes.

 

Each Obligor has timely filed, or caused to be timely filed, all
material tax returns (federal, provincial, state, regional, municipal and
foreign) required to be filed by it and has timely paid (a) all amounts of Taxes
shown thereon to be due (including interest and penalties) and (b) all other
taxes, fees, assessments and other governmental charges (including mortgage
recording taxes, documentary stamp taxes and intangible taxes) due and payable
through the date hereof, except for such Taxes that are being contested in good
faith and by proper proceedings, and in respect of which adequate reserves are
being maintained by it in accordance with GAAP, unless the failure to make any
such payment, individually or in the aggregate, (i) would give rise to an
immediate right to foreclose, distrain, sale or commence a similar 

- 89 -

proceeding or the enforcement of a Lien securing any such amount or (ii) has had
or could reasonably be expected to have a Material Adverse Effect.  As of the
Amendment Effective Date, except as set forth in Schedule 5.10 with
respect to each Obligor and any of its Subsidiaries, there are no audits,
investigations or claims being asserted in writing with respect to any Taxes
that, individually or in the aggregate, has had or could reasonably be expected
to have a Material Adverse Effect, having regard to the overall tax liability of
such Obligor and its Subsidiaries.

  5.11       
  Compliance with Law.

 

Each Obligor is in compliance with all Requirements of Law and
all orders and decrees applicable to it, or to its Properties, except to the
extent that any failure to comply therewith, individually or in the aggregate,
has not had and could not reasonably be expected to have a Material Adverse
Effect.

  5.12       
  Pension Plans and ERISA.

 

Except as, individually or in the aggregate, has not had and
could not reasonably be expected to have a Material Adverse Effect:

(a)

(i) No ERISA Event has occurred, and, to the knowledge of the
Obligors, no event or condition has occurred or exists as a result of which any
ERISA Event could reasonably be expected to occur, with respect to any Plan;
(ii) each Plan has been maintained, operated and funded in compliance with its
own terms and with the provisions of ERISA and any other applicable U.S. federal
or state laws; and (iii) no Lien, including any Lien in favor of the PBGC or a
Plan, has arisen and, to the knowledge of the Obligors, no event has occurred
that is reasonably likely to give rise to such a Lien on account of any Plan;

(b)

The actuarial present value of all ''benefit liabilities'' under
each Single Employer Plan (determined within the meaning of Section 4041(d) of ERISA, utilizing the actuarial assumptions used to fund such Plans), whether or
not vested, did not, as of the last annual valuation date prior to the date on
which this representation is made or repeated, exceed the current value of the
assets of such Plan allocable to such accrued liabilities;

(c)

The present value (determined using actuarial and other
assumptions which are reasonable with respect to the benefits provided and the
employees participating) of the liability of each of the Obligors and their
respective Subsidiaries and each ERISA Affiliate for post-retirement welfare
benefits to be provided to their current and former employees under Plans which
are welfare benefit plans (as defined in Section 3(1) of ERISA), net of all
assets under all such Plans allocable to such benefits, are reflected on the
financial statements of such Person, in accordance with FASB 106 or generally
accepted accounting principles in the United States, as the case may be;

(d)

(i) All Canadian Plans are duly established, registered,
administered and invested in compliance with the terms thereof, any applicable
collective agreements and Applicable Canadian Pension Legislation; (ii) no
events have occurred and no action has been taken by any Person which would
reasonably be likely to result in the termination or partial termination of any
Canadian Plan, whether by declaration of any federal or provincial pension
regulatory authority or otherwise; (iii) none of the Obligors or any of their
respective Subsidiaries has withdrawn any assets held in respect of any Canadian
Plan except as permitted under the terms thereof and Applicable Canadian Pension
Legislation and all reports, returns and filings required to be made thereunder
have been made, except where the failure to make such report, return or filing,
individually or in the aggregate, has not had and could not reasonably be
expected to have a Material Adverse Effect; 

- 90 -

(iv) no Canadian Plan has a solvency deficiency or going concern unfunded
liability that is not funded in accordance with the Supplemental Pension
Plans Act (Québec) and the regulations thereunder, as amended; (v) all
contributions, premiums and other payments required to be paid to or in respect
of each Canadian Plan have been paid in a timely fashion in accordance with the
terms thereof and Applicable Canadian Pension Legislation, and no Taxes,
penalties or fees are owing or exigible in respect of any Canadian Plan; and
(vi) no actions, suits, claims or proceedings are pending or, to the knowledge
of the Obligors, threatened in respect of any Canadian Plan or its assets, other
than routine claims for benefits;

(e)

Each Foreign Plan has been maintained in compliance with its
terms and with the requirements of any and all applicable laws, statutes, rules,
regulations and orders and has been maintained, where required, in good standing
with applicable regulatory authorities.  No Borrower nor any Subsidiary has
incurred any material obligation in connection with the termination of or
withdrawal from any Foreign Plan.  The present value of the accrued benefit
liabilities (whether or not vested) under each Foreign Plan which is funded,
determined as of the end of the most recently ended fiscal year of the Canadian
Borrower on the basis of actuarial assumptions, each of which is reasonable
(based on the actuarial assumptions used for purposes of the applicable
jurisdiction's financial reporting requirements), did not exceed the current
value of the assets of such Foreign Plan, and for each Foreign Plan which is not
funded, the obligations of such Foreign Plan are properly accrued; and

(f)

There does not exist any accumulated deficiency, whether or not
waived, with respect to the Canadian Borrower or any of its Subsidiaries.

  5.13       
  Subsidiaries.

 

(a)

As of the Amendment Effective Date, set forth on Schedule 5.13
is a complete and accurate list of (i) each Subsidiary of the Obligors,
including jurisdiction of incorporation or organization thereof and indicating
whether such Subsidiary is a Material Subsidiary or a Guarantor, (ii) the
authorized and issued Equity Interests of each such Subsidiary and (iii) the
percentage of outstanding shares or other interests of each class of Equity
Interests of each such Subsidiary owned directly or indirectly by the Obligors.

(b)

As of the Amendment Effective Date, the outstanding Equity
Interests held by the Obligors, directly or indirectly, in each such Subsidiary
are validly issued, fully paid and non-assessable (where applicable) and are so
owned by the Obligors, directly or indirectly, free and clear of all Liens other
than Permitted Liens.  As of the Amendment Effective Date, other than as set
forth on Schedule 5.13, (i) no Person other than the Obligors and their
Subsidiaries owns any Equity Interests, directly or indirectly, of any
Subsidiary of an Obligor, (ii) no Person has any written or oral agreement or
option or any right or privilege (whether by law, pre-emptive or contractual)
capable of becoming an agreement or option for the purchase or acquisition from
the Obligors or any of their respective Subsidiaries of any of the outstanding
Equity Interests of any Subsidiary of an Obligor, and (iii) no Subsidiary of the
Obligors has outstanding any security convertible into or exchangeable for its
Equity Interests nor does any such Subsidiary have outstanding any right to
subscribe for or to purchase or any option for the purchase of, or any agreement
providing for the issuance (contingent or otherwise) of, or any call, commitment
or claim of any character relating to, any of its Equity Interests.

  5.14       
  Use of Proceeds; Margin Stock.

 

The proceeds of the Loans hereunder will be used solely for the
purposes specified in Section 6.8.  Without limiting the generality of the
immediately preceding sentence, none of the proceeds 

- 91 -

of any Loans will be used for the purpose of purchasing or carrying any
''margin
stock'' as defined in Regulation U or X, or for the purpose of reducing or
retiring any Indebtedness which was originally incurred to purchase or carry ''margin stock'' or any
''margin security'' (as defined in Regulation T) or for any
other purpose which might constitute this transaction a ''purpose credit'' within
the meaning of Regulation T, U or X.

  5.15       
  Government Regulation.

 

No Obligor incorporated or organized under the laws of the United
States of America or any state thereof is subject to regulation under the U.S.
Public Utility Holding Company Act of 1935, the Federal Power Act,
or the U.S. Investment Company Act of 1940, each as amended.  As of the
Amendment Effective Date, no director, executive officer or Affiliate of the
Obligors is a director, executive officer or principal shareholder (each as
defined in Regulation O) of any of the Agents or any of the Lenders.

  5.16       
  Environmental Matters.

 

Except as specifically set forth on Schedule 5.16 (as
updated by notice in writing to the Administrative Agent from time to time), and
except where any non-compliance with clauses (i) through (vii) below,
individually or in the aggregate, has not had and could not reasonably be
expected to have a Material Adverse Effect:

(i)

each of the Real Properties and all operations at each of the
Real Properties are in compliance with all applicable Environmental Laws, and
there is no violation of, or any liability incurred with respect to, any
Environmental Law with respect to any of the Real Properties, or the facilities
owned, leased or operated or the businesses operated by the Companies, and there
are no conditions relating to any such Real Properties, facilities or businesses
that have given rise to or will give rise to or could be reasonably expected to
give rise to liability under any Environmental Laws;

(ii)

none of the Companies has received or has knowledge of any
written notice of, or written inquiry from any Person regarding, or is aware of,
any violation, alleged violation, non-compliance, liability or potential
liability regarding any Hazardous Materials or compliance with any Environmental
Laws, nor do the Obligors have knowledge that any such notice or inquiry is
being threatened;

(iii)

no Hazardous Materials have been transported, disposed of, used,
handled, generated, treated, stored or Released from, at, on or under any
location in a manner that will give rise to or could reasonably be expected to
give rise to liability under any Environmental Law;

(iv)

no judicial proceeding or governmental or administrative action
is pending or, to the knowledge of any Obligor, threatened under any
Environmental Law to which the Obligors or any of their respective Subsidiaries
is or, to the knowledge of the Obligors, will be named as a party, nor are there
any consent decrees or other decrees, consent orders, administrative orders or
other orders, or other administrative or judicial requirements outstanding under
any Environmental Law with respect to the Obligors, or any of their respective
Subsidiaries or the Real Properties;

(v)

there has been no Release or threat of Release of any Hazardous
Materials at or under or from any of the Real Properties or any real property or
facility currently or formerly owned, leased or operated by the Obligors or any
of their respective Subsidiaries, or arising from or related to any current or
former businesses operated by the Obligors or any of their respective
Subsidiaries, in violation of or in amounts or in a manner that gave rise to or
will give rise to or could reasonably be expected to give rise to liability
under any Environmental Laws;

- 92 -

                      (vi)

none of the Real Properties and no real property or facility
currently or formerly owned, leased or operated by the Obligors or any of their
respective Subsidiaries contains, or has previously contained, any Hazardous
Materials in amounts or concentrations that constitute or constituted a
violation of, or gave rise to or will give rise to or could reasonably be
expected to give rise to liability under any Environmental Laws; and

(vii)

none of the Obligors nor any of their respective Subsidiaries has
assumed any liability of any Person under any Environmental Law.

  5.17       
  Intellectual Property.

 

Each of the Obligors and their respective Subsidiaries owns free
and clear of all Liens other than Permitted Liens, or has the legal right to use
(directly or indirectly), all patents, trademarks, trade names, copyrights,
licenses, technology, know-how, processes or other intellectual property rights
(collectively, ''Intellectual Property'') necessary for each of them to
conduct their respective businesses as currently conducted by them, except to
the extent that any failure to own or have any such legal right to use any such
intellectual property, individually or in the aggregate, has not had and could
not reasonably be expected to have a Material Adverse Effect.  Except as set
forth on Schedule 5.17, to the knowledge of the Obligors, no claim is
pending that any Obligor infringes upon the asserted rights of any other Person
under any Intellectual Property, except for any such claim that could not and
could not reasonably be expected to, individually or in the aggregate, if
determined adversely, have a Material Adverse Effect.  Except as set forth on 
Schedule 5.17, to the knowledge of the Obligors, no claim is pending that
any such Intellectual Property owned or licensed by any Obligor or which any
Obligor otherwise has the right to use is invalid or unenforceable, except for
any such claim that, individually or in the aggregate, has not had and could not
reasonably be expected to have a Material Adverse Effect.

  5.18       
  Investments.

 

All Investments of the Obligors and their respective Subsidiaries
constitute Permitted Investments.

  5.19       
  Insurance.

 

All policies of property, marine, boiler, fire, flood, liability,
workers' compensation, casualty, business interruption and other forms of
insurance owned or held by any Obligor on its own behalf or on behalf of its
Subsidiaries (and all self-insurance retentions and deductibles thereunder)
conform to the requirements set forth in Section 6.6 and (a) are sufficient for
compliance with all Requirements of Law and all Material Contracts to which any
such Person is a party, and (b) provide adequate insurance coverage in at least
such amounts and against at least such risks (including in any event public
liability) as are customary for companies engaged in the same or a similar
business for the assets and operations of any such Person.  All such policies
are in full force and effect, all premiums with respect thereto have been paid
in accordance with their respective terms and no written notice of cancellation
or termination has been received by any Obligor with respect to any such policy,
except for any cancellation, termination or other modification to such policies
that does not have or could not reasonably be expected to have a Material
Adverse Effect.  Except as described in Schedule 5.19 as of the Closing
Date, no Obligor self-insures against any risks, losses or perils.

- 93 -

  5.20       
  Material Contracts.

 

Schedule 5.20 sets forth each
Material Contract in effect on the Closing Date.  As of the Closing Date, a true
and complete copy of each Material Contract has been delivered or made available
to the Administrative Agent.  As of the Closing Date, each Obligor has performed
all of the obligations required to be performed by it in all material respects
and is entitled to all benefits under, and is not in default or, to the
knowledge of the Obligors, alleged to be in default under any Material Contract
to which such Obligor is a party or by which it is bound.  Each Material
Contract is in and in full force and effect, and no event, condition or
occurrence exists which, after notice or lapse of time or both, would constitute
a default under any Material Contract, except for any event, condition or
occurrence that does not have or could not reasonably be expected to have a
Material Adverse Effect.

  5.21       
  Employee Matters.

 

 (i) No Obligor and none of their Subsidiaries and none of their
respective employees is subject to any collective bargaining agreement as of the
Closing Date, except as set forth on Schedule 5.21, (ii) there is no
strike, slowdown, work stoppage or controversy pending or, to the knowledge of
the Obligors, threatened against the Obligors or any of their respective
Subsidiaries or any of their respective employees, that, individually or in the
aggregate, has had or could reasonably be expected to have a Material Adverse
Effect and (iii) no Obligor and none of their Subsidiaries is party to an
employment contract the termination of which or payments under which,
individually or in the aggregate, have had or could reasonably be expected to
have a Material Adverse Effect.

5.22

Security Interest; Absence of Financing Statements; Etc.

The Security Documents, once executed and delivered, will create,
in favor of the Administrative Agent for the benefit of the Secured Parties, as
security for the obligations purported to be secured thereby, (i) a valid and
enforceable security interest in and Lien upon all of the Collateral (and the
proceeds thereof) and (ii) upon the filing, recording or registering with the
appropriate Governmental Authorities and delivery of the applicable documents to
the Administrative Agent, a perfected security interest in all of the Collateral
(and the proceeds thereof) in which a security interest may be perfected by
filing, recording or registering with the appropriate Governmental Authorities
and delivery of applicable documents to the Administrative Agent superior to and
prior to the rights of all third persons other than the holders of Prior Liens
and subject to no other Liens except as expressly permitted by the Security
Documents.

Except for (i) in the case of Collateral, Liens expressly
permitted by the Security Documents, (ii) in the case of all other Property,
Permitted Liens and (iii) the Liens created by the Security Documents, there is
no currently effective financing statement, security agreement, chattel
mortgage, real estate mortgage or other document filed or recorded with any
filing records, registry, or other public office, that purports to cover, affect
or give notice of any Lien on, or security interest in, any Property of any
Company or rights thereunder, except for filings and notices to be terminated
prior to the Closing Date or pursuant to proper documentation delivered by the
Canadian Borrower to the Administrative Agent on the Closing Date.

  5.23       
  Licenses and Permits.

 

The Obligors hold all governmental permits, licenses,
authorizations, consents and approvals necessary for them to own, lease and
operate their respective Properties and to operate their respective businesses
as now being conducted and as proposed to be conducted (collectively, the ''Permits''),
except for Permits the failure of which to obtain, individually or in the
aggregate, has not had, and 

- 94 -

could not reasonably be expected to have a Material Adverse Effect.  None of the
Permits has been modified in any way that, individually or in the aggregate, has
had or could reasonably be expected to have a Material Adverse Effect.  All
Permits are in full force and effect except where the failure to be in full
force and effect, individually or in the aggregate, has not had and could not
reasonably be expected to have a Material Adverse Effect.

  5.24       
  True and Complete Disclosure.

 

The information, reports, financial statements, exhibits and
schedules furnished in writing by or on behalf of any Obligor to any Creditor in
connection with the negotiation, preparation or delivery of the Credit Documents
or included or delivered pursuant thereto or pursuant to the Confidential
Information Memorandum dated November 2003 distributed in connection with the
syndication of the Commitments and Loans, including all filings made with the
Commission or with any securities commission of any province of Canada by any
Company, in each case as modified or supplemented, but in each case excluding
all projections, whether prior to or after the date of this Agreement, when
taken as a whole, do not, as of the date such information was furnished, contain
any untrue statement of material fact or omit to state a material fact necessary
in order to make the statements herein or therein, in light of the circumstances
under which they were made, not materially misleading.  The projections and pro
forma financial information furnished at any time by any Obligor to any Creditor
pursuant to this Agreement have been prepared in good faith based on assumptions
believed by the Canadian Borrower to be reasonable at the time made, it being
recognized by the Lenders that such financial information as it relates to
future events is not to be viewed as fact, that actual results during the period
or periods covered by such financial information may differ from the projected
results set forth therein by a material amount and that no Obligor makes any
representation as to the ability of any Company to achieve the results set forth
in any such projections.  Each Obligor understands that all such statements,
representations and warranties shall be deemed to have been relied upon by the
Lenders as a material inducement to entering into this Agreement and the other
Credit Documents and to making each Extension of Credit hereunder.

  5.25       
  Solvency.

 

As of the Closing Date immediately after the consummation of the
Transactions and the Extensions of Credit to occur on such date, and as of each
Extension Date immediately prior to and immediately after the consummation of
the Extensions of Credit to occur on such date, each Borrower (on a consolidated
basis with its Subsidiaries) is and will be Solvent (after giving effect to
Section 9.8 and assuming realization on any rights of indemnity or contribution
available to the Obligors).

  5.26       
  Real Estate.

 

(a)

Schedule 5.26(a) sets forth a true,
complete and correct list of all Real Property owned, used or occupied by the
Obligors and their respective Subsidiaries as of the Closing Date, including a
brief description thereof, including each Mortgaged Real Property and, in the
case of Leases of Real Property, the street address (to the extent available)
and landlord name.  The Canadian Borrower has delivered or made available to
Collateral Agent true, complete and correct copies of all such Leases of Real
Property.

(b)

Each Mortgaged Real Property and the current use thereof complies
with all applicable Requirements of Law (including building and zoning
ordinances and codes) and no Obligor or tenant is a non-conforming user of such
Mortgaged Real Property, and each Mortgaged Real Property complies with all
Insurance Requirements, except where noncompliance, individually or in the
aggregate, has not had and could not reasonably be expected to have a Material
Adverse Effect.

- 95 -

                                (c)

Except as set forth on Schedule 5.26(c), to the knowledge
of the Obligors, no Taking has been commenced or is contemplated with respect to
all or any portion of the applicable Mortgaged Real Property or for the
relocation of roadways providing access to such Mortgaged Real Property.

(d)

Except as set forth on Schedule 5.26(d), there are no
current or, to the knowledge of the Obligors, pending or proposed special or
other material assessments for public improvements, or otherwise affecting any
Mortgaged Real Property in a material amount, nor are there any contemplated
improvements (including local improvements charges) to such Mortgaged Real
Property, to the knowledge of the Obligors, that may result in such special or
other material assessments (including local improvements charges).

(e)

Except as set forth on Schedule 5.26(e), no Obligor and
none of their Subsidiaries has knowingly suffered, permitted or initiated the
joint assessment of any parcel of Mortgaged Real Property with any other real
property which is not a Mortgaged Real Property, and each Mortgaged Real
Property is assessed for real estate tax purposes separate from any adjoining
land or improvements which is not a Mortgaged Real Property, and no other land
or improvement which is not a Mortgaged Real Property is assessed and taxed
together with such Mortgaged Real Property or any portion thereof.

(f)

Each Obligor and each of their Subsidiaries (or, with respect to
Real Property leased by any Obligor as tenant, the fee owner of such Real
Property, or with respect to any Mortgaged Real Property leased to a tenant,
such tenant, in all cases to the knowledge of each Obligor and each of their
Subsidiaries) has obtained all construction, building, occupancy and use
permits, licenses, variances and certificates required by Requirements of Law to
be obtained by such person and necessary to the present and contemplated uses
and operation of each Mortgaged Real Property and the business conducted
thereon, except as, individually or in the aggregate, has not had and could not
reasonably be expected to have a Material Adverse Effect.  The use being made of
each Mortgaged Real Property is in conformity with the certificate of occupancy
and/or such other permits, licenses, variances and certificates for such
Mortgaged Real Property and any other restrictions, covenants or conditions
affecting such Mortgaged Real Property, except where such nonconformity would
not foreseeably materially impair or prohibit the use of any Mortgaged Real
Property as now conducted.

(g)

Except as set forth on Schedule 5.26(g), each Mortgaged
Real Property is free from structural defects and all building systems
(including all liquid and solid waste disposal septic and sewer systems)
contained therein are in good working order and condition, ordinary wear and
tear excepted, suitable for the purposes for which they are currently being
used, except as, individually or in the aggregate, has not had and could not
reasonably be expected to have a Material Adverse Effect.

(h)

Except as set forth on Schedule 5.26(h)(i), no Person has
any possessory interest in any Mortgaged Real Property or right to occupy any
Mortgaged Real Property except the Obligors or their respective Subsidiaries
(other than any tenant of any leased Mortgaged Real Property).  Except as set
forth on Schedule 5.26(h)(ii), there are no outstanding options to
purchase or rights of first refusal for the purchase of any Real Property that
is owned by the Obligors or a Subsidiary.  Except as set forth on 
Schedule 5.26(h)(iii), there are no transfer restrictions contained in any
Lease relating to such leased Real Property or other outstanding restrictions on
transferability affecting any Real Property.

(i)

Each Mortgaged Real Property has adequate rights of access to
public roadways to permit such Mortgaged Real Property to be used for its
current use and is served by installed, operating and adequate water, electric,
gas, telephone, sewer, sanitary sewer and storm drain facilities.  Except as set
forth in Schedule 5.26(i)(i), all public utilities necessary to the
continued use and enjoyment of each Mortgaged Real Property as used and enjoyed
on the Closing Date are located in the public right-of-way abutting the premises
or are furnished through recorded easements, and all such utilities are
connected so 

- 96 -

as to serve such Mortgaged Real Property without passing over other property
except for land of the utility company providing such utility service and except
where permitted by easement.  All roads necessary for the full utilization of
each Mortgaged Real Property for its current purpose have been completed and
dedicated to public use and accepted by all Governmental Authorities or are the
subject of access easements for the benefit of such Mortgaged Real Property and
no Obligor has knowledge of or received notice of termination of any such access
easement.

(j)

Except as set forth on Schedule 5.26(j), no building or
structure constituting a Mortgaged Real Property or any appurtenance thereto or
equipment thereon, or the use, operation or maintenance thereof, violates in a
material respect any restrictive covenant of record applicable to such Mortgaged
Real Property (or other private agreement, whether or not recorded) or intrudes
and/or encroaches on any easement or on any property owned by others, which
violation, intrusion or encroachment interferes with the use or could materially
adversely affect the value of such building, structure or appurtenance or which
encroachment or intrusion is necessary for the operation of the business at any
Mortgaged Real Property or which could reasonably be expected to have a Material
Adverse Effect.  All buildings, structures, appurtenances and equipment
necessary for the use of each Mortgaged Real Property for the purpose for which
it is currently being used as of the Closing Date are located on and within the
boundary lines of such Mortgaged Real Property, except where the failure to be
so located could not, individually or in the aggregate, reasonably be expected
to result in a Material Adverse Effect.

(k)

As of the Closing Date, without reference to Section 5.31, no
portion of any Mortgaged Real Property has suffered any material damage by fire
or other casualty loss that has not heretofore been repaired and restored to its
original condition.

  5.27       
  Leases.

 

(a)

As of the Closing Date, none of the Obligors nor any of their
respective Subsidiaries have received written notice of any failure to make any
material payments required to be made by it under leases of Real Property where
any of the Collateral is or may be located from time to time and no landlord
Lien has been filed against any of the Collateral.

(b)

As of the Closing Date, each of the Leases relating to the Real
Property set forth on Schedule 5.27(a) is in full force and effect and is
legal, valid, binding and enforceable in accordance with its terms, except as
such enforceability may be limited by (i) Applicable Insolvency Laws and
(ii) the application of general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law, except where
the failure to be so located could not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect).  As of the
Closing Date, without reference to Section 5.31, no such Lease has been amended,
modified or assigned except as set forth on Schedule 5.27(a).  Except as
set forth on Schedule 5.27(b), to the knowledge of the Obligors, there is
not under any such Lease any existing breach, default, event of default or event
that, with or without notice or lapse of time or both, would constitute a
breach, default or an event of default by the Obligors or any other party to
such Lease, except where such breach, default, or event of default could not,
individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect.

(c)

All third party Lease consents to the consummation of the
Transactions contemplated by the BRP Acquisition Agreement have been obtained,
except as set forth on Schedule 5.27(c) or as, individually or in the
aggregate, has not had and could not reasonably be expected to have a Material
Adverse Effect.

- 97 -

  5.28       
  Financial Condition; Etc.

 

(a)

The Canadian Borrower has delivered to the Lenders (i) the
audited combined balance sheets of the BRP Segment as of January 31, 2001,
January 31, 2002, January 31, 2003 and July 31, 2003, and the related statements
of income, changes in stockholders' investments and cash flows for the fiscal
years or six months ended on those dates, together with reports thereon by Ernst
& Young LLP, chartered accountants, and (ii) unaudited combined balance sheet of
the BRP Segment and its Subsidiaries as of July 31, 2002 and the related
statements of earnings, changes in stockholders' investments and cash flows for
the six-month period ended on such date.  All of said financial statements,
including in each case the related schedules and notes, are true, complete and
correct and have been prepared in accordance with GAAP consistently applied and
present fairly in all material respects the financial position of the BRP
Segment as of the dates of said balance sheets and the results of their
operations for the periods covered thereby, subject (in the case of interim
statements) to normal period-end audit adjustments.

(b)

As of the Closing Date, except as set forth on 
Schedule 5.28(b) or in the financial statements or other information
referred to in Section 5.28(a), there are no material liabilities of any Company
of kind required to be set forth on a balance sheet or in the notes thereto
prepared in accordance with GAAP as of the dates of such financial statements,
whether accrued, contingent, absolute, determined, determinable or otherwise.

(c)

Except as set forth on Schedule 5.28(c), since July 31,
2003 there has been no Material Adverse Effect or event or condition that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.

(d)

The pro forma balance sheet of Consolidated Companies (the ''Pro
Forma Balance Sheet''), certified by the chief financial officer of the
Canadian Borrower, copies of which will be furnished to each Lender not later
than the second Business Day (nor earlier than the fifth Business Day) prior to
the Closing Date, is the balance sheet of Consolidated Companies as of July 31,
2003 (the ''Pro Forma Date''), adjusted to give effect (as if such events
had occurred on such date) to the Transactions to occur on the Closing Date and
the application of the proceeds of all Indebtedness to be incurred on such date.
 The Pro Forma Balance Sheet, together with the notes thereto, accurately
reflects in all material respects all adjustments necessary to give effect to
the Transactions, was prepared based on good faith assumptions, and presents
fairly in all material respects on a pro forma basis the consolidated financial
position of Consolidated Companies as at the Pro Forma Date, adjusted as
described above.

  5.29       
  Holdco.

 

As of the Amendment Effective Date, Holdco is a company organized
under the laws of Canada on behalf of the Investors in connection with the BRP
Acquisition and has not carried on any activities, incurred any liabilities,
assumed any obligations or acquired any assets prior to the Closing Date other
than those incident to its formation and the transactions contemplated by the
Transaction Documents.  Schedule 5.29 sets forth as of the Closing Date
the authorized and issued share capital of Holdco, including a list of the names
and shareholdings of all Persons who beneficially own, directly or indirectly,
or exercise control and direction over Equity Interests of Holdco.  Except as
set forth on Schedule 5.29, as of the Closing Date, no Person has any
agreement, right or option to acquire any Equity Interests or securities
convertible into, or other rights to acquire, Equity Interests of Holdco.

  5.30       
  Relevant Borrower's Accounts.

 

Each Relevant Borrower's Account is, as of the Amendment
Effective Date, as set forth on Schedule 5.30.

- 98 -

  5.31       
  Deemed Repetition.

 

The representations and warranties contained in this Article 5
shall be deemed to be repeated on the date of the delivery of each Notice of
Borrowing (other than a Notice of Continuation/Conversion of a Loan pursuant to
Section 3.2 hereof) and of each Officer's Certificate delivered pursuant to
Section 6.1(c) as if made on each such date (except to the extent any such
representation or warranty relates expressly to an earlier date).

  5.32       
  Contingent Obligations.

 

None of the Obligors and their Subsidiaries have (i) any material
Contingent Obligations or contingent liabilities known to them which are not
disclosed or referred to in the most recent financial statements delivered to
the Administrative Agent in accordance with the provisions of Section 6.1 or
otherwise disclosed to the Administrative Agent in writing, or (ii) incurred any
material indebtedness which is not disclosed in or reflected in such financial
statements, or otherwise disclosed to the Administrative Agent in writing, other
than Contingent Obligations or contingent liabilities incurred in the ordinary
course of business.  

  5.33       
  Internal Controls.

 

Each of the Obligors and their Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurances that (i) transactions
are executed in accordance with management's general or specific authorization,
(ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain accountability for assets,
(iii) access to assets is permitted only in accordance with management's general
or specific authorization and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

  5.34       
  Suppliers.

 

As of the Amendment Effective Date, no supplier of merchandise
has ceased shipments of merchandise to any Obligor (other than in the normal
course of business consistent with past practices), which cessation would,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

ARTICLE 6

AFFIRMATIVE COVENANTS

Holdco and each Borrower hereby covenants and agrees that so long
as this Agreement is in effect and until the Loans, together with interest and
fees and all other Obligations under the Credit Documents (other than contingent
indemnification obligations to the extent no claim giving rise thereto has been
asserted), have been paid in full and the Commitments hereunder shall have been
terminated:

  6.1       
  Information Covenants.

 

The Borrowers shall furnish, or cause to be furnished, to the
Administrative Agent:

(a)

Annual Financial Statements.  As
soon as available, and in any event within 90 days after the end of each fiscal
year of the Canadian Borrower:

- 99 -

                      (i)

audited consolidated financial statements of the Canadian
Borrower, which shall include a balance sheet and income statement as of the end
of such fiscal year, together with related consolidated statements of operations
and retained earnings and of cash flows for such fiscal year, setting forth in
comparative form consolidated figures for the preceding fiscal year (or
preceding fiscal year-end in the case of the consolidated balance sheet); and

(ii)

unaudited consolidating balance sheets and income statements
(together with unaudited consolidating statements of cash flows to the extent
available) of the Canadian Borrower and its Subsidiaries as of and for such
fiscal year.

The audited consolidated financial statements pursuant to
Section 6.1(a)(i) of the Canadian Borrower shall be audited by a firm of
independent chartered accountants of recognized national standing acceptable to
the Administrative Agent, acting reasonably, and whose opinion shall be to the
effect that such financial statements have been prepared in accordance with GAAP
(except for changes identified by such accountants and with which such
accountants concur) and shall not be limited as to the scope of the audit or
qualified in any material respect.

(b)

Quarterly Financial Statements.  As
soon as available, and in any event within 45 days after the end of each of the
first three Quarters of each fiscal year:

(i)

an unaudited consolidated balance sheet and income statement of
the Canadian Borrower as of the end of such Quarter, together with related
consolidated statements of operations and retained earnings and of cash flows
for such Quarter, setting forth in comparative form consolidated figures for the
corresponding Quarter of the preceding fiscal year; and

(ii)

unaudited consolidating balance sheets and income statements
(together with unaudited consolidating statements of cash flows to the extent
available) of the Canadian Borrower and its Subsidiaries as of and for the
preceding fiscal year-end to the end of such Quarter.

All such financial information specified in clauses (a) and (b)
shall include information by segment (such segments to be defined consistently
with those in the forecast for such period previously delivered pursuant to
clause (e) below) and shall otherwise be in reasonable form and detail and
acceptable to the Administrative Agent, acting reasonably, and accompanied by a
''Management's Discussion and Analysis of Financial Condition and Results of
Operations'' and a certificate (with supporting details) of the chief financial
officer of the Canadian Borrower to the effect that such financial statements
present fairly in all material respects the financial condition of the Canadian
Borrower and have been prepared in accordance with GAAP, subject to any changes
therein which may result from an audit and normal year-end adjustments and
subject to the absence of notes.

(c)

Officer's Certificate.  At the times
specified for delivery of the financial statements and reports provided for in
Sections 6.1(a) and (b), a certificate of the chief financial officer of the
Canadian Borrower, substantially in the form of Exhibit N,

(i)

demonstrating in detail satisfactory to the Administrative Agent,
acting reasonably, compliance as of the end of such fiscal period with
Sections 7.1, 7.6, 7.7, 7.8 and with the financial covenants contained in
Section 7.17 by calculation thereof, and 

- 100 -

              
demonstrating in detail satisfactory to the Administrative Agent, acting
reasonably, the calculation of the Cumulative Growth Amount as of the end of
such Quarter,

(ii)

setting forth the rating of the Facilities by Moody's and S&P as
of the end of such Quarter,

(iii)

stating that no Default or Event of Default has occurred during
the applicable period, or, if any Default or Event of Default has occurred,
specifying whether the same still exists on the date of the certificate, the
nature and extent thereof and, if existing, what action is being taken or
proposed to be taken with respect thereto and the time frame within which any
such action will be taken, and

(iv)

providing updated Schedules 5.13, 5.16 and 5.18,
if applicable.

(d)

Accountant's Certificate.  At or
prior to the time specified for delivery of the annual financial statements and
reports provided for in Section 6.1(a)(i), a certificate of the independent
chartered accountants conducting the annual audit (which certificate will be
limited solely to accounting matters and related to the financial covenants in
Sections 7.8 and 7.17 and disclaim responsibility for legal interpretations)
stating that they have reviewed this Agreement and stating further whether, in
the course of their audit, they have become aware of any Default or Event of
Default which exists related to Sections 7.8 and 7.17 and, if they have become
aware of any such Default or Event of Default, specifying the nature and extent
thereof.

(e)

Business Plan and Financial Forecast.
 As soon as available, and in any event within 45 days after the end of each
fiscal year of the Canadian Borrower, a copy of the Canadian Borrower's
consolidated business plan covering, in reasonable detail and including
information by segment, the upcoming fiscal year of the Canadian Borrower and a
financial forecast covering, in reasonable detail, the upcoming three fiscal
years.

(f)

Auditor's Reports.  Promptly upon
receipt thereof, a copy of any ''management letter'' or report submitted by
independent chartered accountants to the Canadian Borrower or any of its
Subsidiaries in connection with any annual, interim or special audit or review
of the books of the Canadian Borrower or any of its Subsidiaries.

(g)

Reports.  Concurrently with the
transmission thereof or promptly upon the receipt thereof, copies of any
material filings, registrations, reports or documents of the Canadian Borrower
or any of its Subsidiaries with, and reports to or from, the Commission, the
Ontario Securities Commission and any other securities commission in Canada, The
Toronto Stock Exchange, the New York Stock Exchange and any other exchange or
market on which any of the securities of the Canadian Borrower or any of its
Subsidiaries are listed or traded, and any other Governmental Authority, 
or any successor agencies, and copies of all financial statements, proxy
statements or circulars or dissident proxy statements or circulars, information
circulars, notices and reports that the Canadian Borrower may send to its
shareholders or holders of Indebtedness issued by it (to the extent not already
provided in Section 6.1(a) or (b)) and, upon the request of the Administrative
Agent, copies of all reports, correspondence and written information relating to
the Canadian Borrower or any of its Subsidiaries to and from the United States
Environmental Protection Agency, Environment Canada, the Ontario Ministry of the
Environment and the Ministère de l'environnement du Québec, or any other
Governmental Authority responsible for environmental matters, and to or from the
United States Occupational Safety and Health Administration, the Québec
Commission de la Santé et de la Sécurité du travail, the Ministry of Labour and
the 

- 101 -

Workplace Safety and Insurance Board in Ontario, or any other Governmental
Authority responsible for public or occupational health and safety matters.

(h)

Notices.  Promptly upon the Canadian
Borrower obtaining knowledge thereof (and in any event within five (5) Business
Days after obtaining said knowledge), written notice from the Canadian Borrower
to the Administrative Agent of (A) the occurrence of any event, circumstances or
condition which constitutes a Default or Event of Default, specifying the nature
and extent thereof and what action is proposed to be taken with respect thereto
and the time frame within which any such action is to be taken, (B) the
occurrence of any of the following with respect to the Canadian Borrower or any
of its Subsidiaries:  (1) the pendency or commencement of any litigation,
arbitral or governmental proceeding against the Canadian Borrower or any of its
Subsidiaries that, individually or in the aggregate, has had or could reasonably
be expected to have a Material Adverse Effect; (2) the institution of any
proceedings against the Canadian Borrower or any of its Subsidiaries with
respect to, or the receipt of notice by such Person of potential liability or
responsibility for violation or alleged violation, of any applicable federal,
provincial, state, regional, municipal or foreign law, rule or regulation,
including Environmental Laws, the violation of which could reasonably be
expected to have a Material Adverse Effect; (3) any actual or anticipated Change
of Control and of all relevant particulars thereof; or (4) the occurrence of any
strike, slowdown, lock-out, work stoppage or other labor dispute affecting or
involving any employees of the Canadian Borrower or any of its Subsidiaries,
other than any ordinary course labor grievance, that, individually or in the
aggregate, has had or could reasonably be expected to have a Material Adverse
Effect and (C) the occurrence of any Material Adverse Effect or any event or
condition that, individually or in the aggregate, has had or could reasonably be
expected to have a Material Adverse Effect.

(i)

ERISA and Canadian Plans.  Promptly
upon the Canadian Borrower obtaining knowledge thereof (and in any event within
five (5) Business Days), written notice from the Canadian Borrower to the
Administrative Agent of:

(i)

any event or condition that constitutes an ERISA Event and any
change in the funding status of any Plan that, individually or in the aggregate,
has had or could reasonably be expected to have a Material Adverse Effect, in
each case together with a description of any such event or condition or a copy
of any such notice and a statement by the chief financial officer of the
Canadian Borrower briefly setting forth the details regarding such event,
condition or notice and the action, if any, which has been or is being taken or
is proposed to be taken with respect thereto.  Promptly upon request, the
Canadian Borrower shall furnish the Administrative Agent with such additional
information concerning any Plan as may be reasonably requested, including copies
of each annual report or return, as well as all schedules and attachments
thereto required to be filed with any Governmental Authority pursuant to ERISA
and the Code, for each ''plan year'' (within the meaning of Section 3(39) of ERISA);
and

(ii)

upon the institution of any steps by the Canadian Borrower or any
of its Subsidiaries to terminate any Canadian Plan that, individually or in the
aggregate, has had or could reasonably be expected to have a Material Adverse
Effect, or the occurrence of any event with respect to any Canadian Plan that,
individually or in the aggregate, had had or could reasonably be expected to
have a Material Adverse Effect and, upon request by the Administrative Agent,
copies of all documentation relating thereto.

- 102 -

                               
(j)

Relevant Borrower's Accounts.
 Promptly upon making any change to any Relevant Borrower's Account (and in any
event within five (5) Business Days), written notice thereof to the
Administrative Agent.

(k)

Other Information.  With reasonable
promptness upon any such request, all such other information regarding the
business, properties or financial condition of the Canadian Borrower or any of
its Subsidiaries as the Administrative Agent may reasonably request, including
reports identifying in reasonable detail the assets, revenues and EBITDA
attributable to each of the Obligors.

(l)

Lien Matters; Casualty and Damage to Collateral.
 Prompt written notice of (i) the incurrence of any Lien not expressly permitted
by the applicable Security Document on any of the Collateral or (ii) any
Casualty Event or other insured damage to any material portion of the Collateral
or the commencement of any Proceeding likely to result in a Casualty Event as a
result of which any repayment in respect of the Facilities would be required
pursuant to Section 3.8.

  6.2       
  Conduct of Business and Maintenance of Existence.

 

Except as otherwise permitted by Section 7.4, Holdco shall, and
shall cause each of its Subsidiaries to, preserve, renew and keep in full force
and effect its corporate, limited partnership, limited liability company or
other entity existence and take all reasonable action to maintain all material
rights, material privileges, franchises, copyrights, patents, trademarks and
trade names necessary or desirable in the normal conduct of its business except
for rights, privileges, franchises, copyrights, patents, trademarks and trade
names the loss of which, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect; and comply with all applicable
Requirements of Law except to the extent that the failure to comply therewith,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

The Canadian Borrower shall notify the Administrative Agent of
any significant change in the executive management of the Canadian Borrower.

  6.3       
  Books and Records.

 

Holdco shall, and shall cause each of its Subsidiaries to, keep
complete and accurate books and records of its transactions in accordance with
standard accounting practices on the basis of and in accordance with GAAP
(including the establishment and maintenance of appropriate reserves).  In the
event that an Obligor or any of its Subsidiaries keeps in the Province of Québec
any books and records with respect to any Collateral, such Obligor or Subsidiary
shall, if requested by the Administrative Agent, keep on computer disks or tapes
a duplicate of such books and records at a location outside of the Province of
Québec in a jurisdiction in which the Administrative Agent has confirmed that it
has perfected security in such books and records.

  6.4       
  Compliance with Law.

 

(a)

Holdco shall, and shall cause each of its Subsidiaries to, comply
with all Requirements of Law (including Environmental Laws), and all applicable
restrictions imposed by all Governmental Authorities applicable to it and any of
its Properties except to the extent any such non-compliance therewith,
individually or in the aggregate, has not had and could not reasonably be
expected to have a Material Adverse Effect.

- 103 -

                                (b)

Holdco and its Subsidiaries shall (i) maintain policies and
procedures that are intended to (A) ensure that each of them, any of their
respective operations and facilities, and each of the properties owned, leased
or operated by each of them remains in compliance with all Environmental Laws
and (B) minimize any liabilities or potential liabilities that each of them, any
of their respective operations and facilities, and each of the properties owned,
leased or operated by each of them may have under any Environmental Laws;
(ii) comply in all material respects with all Environmental Laws, and keep or
cause all Real Property to be kept free of any Liens under Environmental Laws,
unless failure to do so, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect; (iii) in the event of any
Hazardous Material at, on, under or emanating from any Real Property which could
reasonably be expected to result in liability under or a violation of any
Environmental Law, in each case that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect, undertake, and/or
cause any of its respective tenants or occupants to undertake, at its sole
expense, any action required pursuant to Environmental Laws to mitigate and
eliminate such condition; provided, however, that Holdco and its
Subsidiaries shall not be required to comply with any order or directive which
is being contested in good faith and by proper actions or proceedings so long as
they have maintained adequate reserves with respect to such compliance to the
extent required in accordance with GAAP; (iv) promptly notify the Administrative
Agent of any event specified in clause (ii) of this Section 6.4(b) and
periodically thereafter keep the Administrative Agent informed of any material
actions taken in response to such event and the results thereof, and (v) at the
written request of the Administrative Agent, provide, at such Obligor's sole
cost and expense, an environmental site assessment addressed to (or accompanied
by a reliance letter addressed to) the Lenders (including the results of any
soil or groundwater or other testing conducted at the Administrative Agent's
request) concerning any Real Property now or hereafter owned, leased or operated
by the Canadian Borrower and its Subsidiaries, conducted by an environmental
consulting firm proposed by such Obligor and approved by the Administrative
Agent (not to be unreasonably withheld) indicating the presence or absence of
Hazardous Materials and the potential cost of any required action in connection
with any Hazardous Materials on, at, under or emanating from such Real Property;
provided, however, that such request may be made only if (x) there
has occurred and is continuing an Event of Default, or (y) circumstances exist
that reasonably could be expected to form the basis of an Environmental Claim
against such Obligor or any such Real Property that could reasonably be expected
to have a Material Adverse Effect; if the Canadian Borrower and its Subsidiaries
fail to provide the same within 60 days after such request was made, the
Administrative Agent may but is under no obligation to conduct the same, and
such Obligor shall grant and hereby grants to the Administrative Agent and its
agents access to such Real Property and specifically grants Administrative Agent
an irrevocable non-exclusive license, subject to the rights of tenants, to
undertake such an assessment, all at such Obligor's sole cost and expense.

  6.5       
  Payment of Taxes and Other Indebtedness.

 

Holdco shall, and shall cause each of its Subsidiaries to timely
pay, settle or discharge (a) all Taxes, assessments and governmental charges or
levies imposed upon it, its income or profits or upon any of its properties
before they shall become delinquent and (b) all lawful claims (including claims
for labor, materials and supplies) which, if unpaid, might give rise to a Lien
 (other than a Permitted Lien) upon any of their respective properties; 
provided, however, that any such Person shall not be required to pay
any such tax, assessment, charge, levy or claim referred to in clauses (a) and
(b) which is being contested by it in good faith by appropriate proceedings and
as to which adequate cash reserves therefor have been established by it in
accordance with GAAP, and such contest operates to suspend collection of the
contested obligation, tax, assessment or charge and enforcement of a Lien; 
provided, further, that no such contested items either individually
or in the aggregate have had or could reasonably be expected to have a Material
Adverse Effect.

- 104 -

  6.6       
  Insurance.

 

(a)

Holdco shall, and shall cause each of its Subsidiaries to,
maintain in full force and effect insurance programs (or self-insurance) as
described in Section 5.19, including insurance with respect to Mortgaged Real
Properties and other properties material to the business of the Obligors against
such casualties and contingencies and of such types and in such amounts with
such deductibles as is customary in the case of similar businesses operating in
the same or similar locations (including, without limitation, (i) physical
hazard insurance on an ''all risk'' basis, (ii) commercial general liability
against claims for bodily injury, death or property damage covering any and all
insurable claims, (iii) explosion insurance in respect of any boilers, machinery
or similar apparatus constituting Collateral, (iv) business interruption
insurance, (v) worker's compensation insurance as may be required by any
Requirement of Law and (vi) such other insurance against risks as the
Administrative Agent may from time to time reasonably require); provided
that Holdco or any of its Subsidiaries may implement programs of self-insurance
in the ordinary course of business and in accordance with industry standards for
a company of similar size so long as reserves are maintained in accordance with
GAAP for the liabilities associated therewith; and maintain such other insurance
as may be required by law (such policies to be in such form and amounts and
having such coverage as may be reasonably satisfactory to the Administrative
Agent); and with respect to physical hazard insurance neither Administrative
Agent nor the Borrower (or the applicable Obligor) shall agree to the adjustment
of any claim related to a Casualty Event thereunder without the consent of the
other (such consent not to be unreasonably withheld or delayed, and such consent
of Borrower (or the applicable Obligor) not to be required following the
occurrence and during the continuance of an Event of Default).  All such
policies and programs (other than self-insurance) shall be maintained with
responsible and reputable insurers of companies engaged in similar businesses
and owning similar property in the same general geographic areas in which the
Canadian Borrower and its Subsidiaries, as applicable, operate.

(b)

All policies of insurance required to be maintained by the
Canadian Borrower shall name the Administrative Agent, on behalf of the
Creditors, as mortgagee or first loss payee (in the case of property insurance
and business interruption insurance) and additional insured (in the case of
liability insurance), as applicable, or certificate holder (in the case of
workers' compensation insurance), shall provide for 30 days' prior written
notice by the applicable insurance carriers to the Administrative Agent of
cancellation, non-renewal or modification (including reduced coverage) of the
policies and shall provide that if the insurance carrier shall have received
written notice from the Administrative Agent of the occurrence and continuance
of an Event of Default, the insurance carrier shall pay all proceeds otherwise
payable to the Canadian Borrower under such policies directly to the
Administrative Agent.  No act, whether willful or negligent, or Default of the
Canadian Borrower or any other Person shall affect the right of the
Administrative Agent to recover under such policy or policies, of insurance in
case of loss or damage.

(c)

The Canadian Borrower shall give prompt written notice of any
Casualty Event by any Borrower or any Subsidiary of any Borrower to the
insurance carrier and to the Administrative Agent.

(d)

If at any time the area in which any Mortgaged Real Property is
located is designated a ''flood hazard area'' in any Flood Insurance Rate Map
published by the Federal Emergency Management Agency (or any successor agency)
or the equivalent, if any, under the laws of Canada, then the Canadian Borrower
shall obtain flood insurance in such total amount as the Administrative Agent or
the Majority Lenders may from time to time require (so long as such requirements
is reasonably grounded in applicable Requirements of Law), and otherwise comply
with the National Flood Insurance Program, as set forth in the Flood Disaster
Protection Act of 1973, as amended from time to time or the equivalent, if any,
under the laws of Canada.  If at any time the area in which any Mortgaged Real
Property is designated 

- 105 -

a ''Zone 1'' area, the Canadian Borrower shall obtain earthquake insurance in such
total amount as Administrative Agent or the Majority Lenders may reasonably
require (so long as such requirement is reasonably grounded in applicable
Requirements of Law).

(e)

The policies for any property insurance required hereunder shall
either name or contain an endorsement naming the Administrative Agent as first
mortgage and first loss payee under a first mortgage clause or endorsement
without contribution substantially equivalent to the New York or Insurance
Bureau of Canada, as applicable, standard first mortgage clause of endorsement.

(f)

Without limiting the obligations of the Companies under the
foregoing provisions of this Section 6.6, in the event the Canadian Borrower
shall fail to maintain in full force and effect insurance as required by the
foregoing provisions of this Section 6.6, then the Administrative Agent may, but
shall have no obligations so to do, procure insurance covering the interests of
the Lenders and the Administrative Agent in such amounts and against such risks
as the Administrative Agent (or the Majority Lenders) shall deem appropriate,
and all sums so disbursed by Administrative Agent shall be part of the
Obligations, payable as provided in this Agreement.

  6.7       
  Maintenance of Property.

 

Holdco shall, and shall cause each of its Subsidiaries to,
maintain and preserve its properties and equipment in good repair, working order
and condition, normal wear and tear excepted (subject to damage by casualties),
and will make, or cause to be made, to such Properties and equipment from time
to time all such repairs, renewals, replacements, extensions, additions,
betterments and improvements thereto as may be needed or proper, to the extent
material to the conduct of their business.

  6.8       
  Use of Proceeds.

 

Each Borrower shall use the proceeds of the Loans (i) under the
Revolving Credit Facilities for general corporate purposes, including for
working capital requirements, (ii) under the Term Facilities borrowed on the
Closing Date solely for the purposes of financing the BRP Acquisition and paying
related fees and expenses and (iii) under the New Term Facility solely for the
purpose of repaying amounts outstanding under the Canadian Term Facility and the
U.S. Term Facility and paying related interest and fees.

  6.9       
  Audits/Inspections.

 

Upon reasonable notice and during normal business hours and in a
manner that will not unreasonably interfere with its business operations, the
Canadian Borrower shall, at the expense of the Borrowers, to the extent such
expenses are reasonable, permit one or more representatives appointed by the
Administrative Agent or the Majority Lenders, including independent accountants,
agents, attorneys and appraisers, to visit and inspect the Canadian Borrower's
or any of its Subsidiaries' property, including its books and records, its
accounts receivable and inventory, its Real Property, its facilities and its
other business assets, and to make photocopies or photographs thereof and to
write down and record any information any such representative obtains, and shall
permit the Lead Arrangers or the Administrative Agent or its representatives to
investigate and verify the accuracy of any information provided to any Agent or
any Lender, and to discuss all such matters with the officers, employees and
representatives of any Person.  Notwithstanding the foregoing, however, other
than after the occurrence and during the continuance of any Default or Event of
Default, the Administrative Agent and its representatives shall not be permitted
to make any such audit or inspection more than twice in any 12-month period.

- 106 -

6.10       
Additional Obligors and Material Subsidiaries.

(a)

At the time that any Person becomes (A) a Succeeding Holdco, (B)
a Wholly Owned Subsidiary of the Canadian Borrower or (C) a Material Subsidiary
of the Canadian Borrower (in the clauses (B) or (C), whether or not such Person
was prior to that time a Subsidiary of the Canadian Borrower), the Canadian
Borrower shall promptly notify the Administrative Agent thereof and the Canadian
Borrower shall cause the Succeeding Holdco and each such Subsidiary (other than
any Receivables Co. and other than any Subsidiary that is not organized under
the laws of Canada or any province thereof or under the laws of the United
States or any state thereof) that is permitted to provide a full and
unconditional guarantee of the Obligations without violating any applicable law
and without material adverse tax consequences to the Canadian Borrower or its
Subsidiaries (as determined reasonably and in good faith by the Canadian
Borrower), to execute and deliver a joinder agreement substantially in the form
of Exhibit E in favor of the Agents and the Lenders and, to the extent
permissible without violating any applicable law and without material adverse
tax consequences to the Canadian Borrower or its Subsidiaries (as determined
reasonably and in good faith by the Canadian Borrower), execute and deliver in
favor of the Agents and the Lenders, the other Security Documents described in
Sections 4.2(m)(i) and 4.2(n)(i) of the Original Credit Agreement, in each case
within (i) ten days after the date on which such Person becomes a Succeeding
Holdco, and (ii) 30 days after the date on which such Person became a Wholly
Owned Subsidiary or a Material Subsidiary of the Canadian Borrower, and in each
case together with such other documentation as the Administrative Agent may
reasonably request in connection with same, including certified resolutions and
other organizational and authorizing documents of such entity and an opinion of
counsel to such entity, which shall cover, where customary, among other things,
the existence of such entity and the due authorization, execution, delivery,
legality, validity, binding effect and enforceability of the documentation
referred to above, all in form and substance reasonably satisfactory to the
Administrative Agent.

(b)

The Canadian Borrower may, by notice in writing to the
Administrative Agent at any time, elect to cause any Subsidiary that can provide
a full and unconditional guarantee of the Canadian Borrower which is not then a
Guarantor to become a Guarantor by delivering, following the receipt of such
written notice, the applicable Security Documents executed by such Subsidiary
(including a Guarantee), together with such other documentation as the
Administrative Agent may reasonably request in connection with same, including
certified resolutions and other organizational and authorizing documents of such
Subsidiary and a favorable opinion of counsel to such Subsidiary (to the extent
customary in the relevant jurisdiction for secured lending transactions), which
shall cover, where customary, among other things, the existence of such
Subsidiary and the due authorization, execution, delivery, legality, validity,
binding effect and enforceability of the documentation referred to above, all in
form and substance reasonably satisfactory to the Administrative Agent.

(c)

Without limiting the generality of clauses (a) and (b) of this
Section 6.10, in the event that, after the Closing Date, any Obligor acquires or
holds a leasehold, fee interest or ownership with a market or book value of
Cdn$2.0 million or more in any Real Property located in the United States or
Canada, such Obligor shall promptly and in any event within 90 days of the date
of acquisition of such Real Property by any Obligor (i) take such actions and
execute such documents as the Administrative Agent, or the Global Transaction
Coordinator, as appropriate, shall reasonably require to confirm the Lien of an
existing Mortgage, if applicable, or to create a new Mortgage on such additional
Real Property in favor of the Administrative Agent, or the Global Transaction
Coordinator, as appropriate, and (ii) cause to be delivered to the
Administrative Agent, or the Global Transaction Coordinator, as appropriate, on
behalf of the Secured Parties, the documents and instruments reasonably
requested by the Administrative Agent, or the Global Transaction Coordinator, as
appropriate, including, without limitation, the items set forth in
Section 4.2(m)(v) of the Original Credit Agreement (with respect to Real
Property located 

- 107 -

in the United States) or Section 4.2(n)(v) of the Original Credit Agreement
(with respect to Real Property located in Canada or owned by a Person having a
principal place of business, chief executive office or domicile in Canada) in
respect of Mortgaged Real Property.  If requested by the Administrative Agent,
or the Global Transaction Coordinator, as appropriate, or the Majority Lenders,
each Obligor shall obtain at its sole expense and as soon as practicable but in
any event not later than 90 days after request therefor, Phase 1 environmental
reports from an environmental engineering firm reasonably acceptable to the
Administrative Agent, or the Global Transaction Coordinator, as appropriate,
with respect to any Real Property owned by any Obligor if not delivered on or
prior to the Closing Date.

                           
(d)                
The Canadian Borrower
shall within 30 days of the Amendment Effective Date deliver a legal opinion to
the Administrative Agent from Barbados counsel to the Obligors in form and
substance substantially consistent with the opinion delivered by Barbados
counsel to the Obligors on the Closing Date and otherwise in form and substance
reasonably satisfactory to the Administrative Agent. 

  6.11       
  Security Interests, Further Assurances.

 

The Canadian Borrower shall, promptly, upon the reasonable
request of the Administrative Agent, at the Canadian Borrower's expense,
execute, acknowledge and deliver, or cause the execution, acknowledgment and
delivery of, and thereafter register, file or record, or cause to be registered,
filed or recorded, in an appropriate governmental office, any document or
instrument supplemental to or confirmatory of the Security Documents or
otherwise deemed by the Administrative Agent reasonably necessary or desirable
for the continued validity, perfection and priority of the Liens on the
Collateral covered thereby superior to and prior to the rights of all third
Persons other than the holders of Prior Liens and subject to other Liens except
as permitted by the Security Documents, or obtain any consents, including
landlord or similar lien waivers and consents, as may be necessary or
appropriate in connection therewith.  Each Company shall deliver or cause to be
delivered to the Administrative Agent from time to time such other
documentation, consents, authorizations, approvals and orders in form and
substance reasonably satisfactory to the Administrative Agent as the
Administrative Agent shall reasonably request to perfect or maintain the Liens
on the Collateral pursuant to the Security Documents.  Upon the exercise by the
Administrative Agent or the Lenders of any power, right, privilege or remedy
pursuant to any Credit Document which requires any consent, approval,
registration, qualification or authorization of any Governmental Authority, each
Company shall execute and deliver all applications, certifications, instruments
and other documents and papers that the Administrative Agent or the Lenders may
be so required to obtain.  If the Administrative Agent or the Majority Lenders
are required by law or regulation to have appraisals prepared in respect of the
Real Property of any Obligor constituting Collateral, Borrower shall provide to
the Administrative Agent appraisals that satisfy the applicable requirements of
the Real Estate Appraisal Reform Amendments of FIRREA and are in form and
substance reasonably satisfactory to the Administrative Agent.

Notwithstanding anything to the contrary in this Agreement, no
Subsidiary shall be required to become a Guarantor or to grant any security
interest in its assets if, in the reasonable judgment of the Administrative
Agent, the cost of implementing such Guarantee or creating or perfecting such
security 

- 108 -

interests is excessive in view of the benefits to
be obtained by the Secured Parties therefrom.  The Administrative Agent may
grant extensions of time for the execution of any Guarantee or the creation or
perfection of security interests with respect to particular assets (including
extensions beyond the Closing Date) if it determines that execution, creation or
perfection cannot be accomplished without undue effort or expense by the time or
times at which it would otherwise be required by this Agreement or the Security
Documents.

6.12       
Hedging Requirements.

Within 60 days after the Closing Date, the Canadian Borrower
shall enter into, and shall maintain at all times during the fiscal year ending
January 31, 2005, Hedging Agreements with respect to (i) not less than 80%
of the Forecast Exposure (as defined below) for the fiscal year ending
January 31, 2005, and (ii) not less than 50% of the Forecast Exposure for the
fiscal year ending January 31, 2006, in each case with such Forecast Exposure to
be based on a written report delivered by the Canadian Borrower to the
Administrative Agent on or prior to the Closing Date.  Commencing with the
fiscal year ending January 31, 2006, the Canadian Borrower shall enter into, and
shall maintain at all times during such fiscal year, Hedging Agreements with
respect to not less than 50% of the Forecast Exposure for each fiscal year, in
each case with such Forecast Exposure to be based on a written report delivered
by the Canadian Borrower to the Administrative Agent not less than 45 days after
the beginning of such fiscal year, it being understood that the Canadian
Borrower shall have a period of 45 days to enter into such Hedging Agreements
after the delivery of such forecast.  Upon not less than 45 days' prior written
notice of the Administrative Agent and/or the Majority Lenders at any time after
January 31, 2005, the Canadian Borrower shall thereafter maintain Hedging
Agreements with respect to not less than 80% of the Forecast Exposure for the
applicable fiscal year.  The ''Forecast Exposure'' for any fiscal year shall equal the
projected net exposure of the Consolidated Companies to changes in the value of
the U.S. Dollar and the Euro against the Canadian Dollar as reflected in a
report prepared by the Canadian Borrower in good faith and based on reasonable
assumptions.

  6.13       
  Post - Amendment Effective Date Obligations.

 

With respect to each Excluded Mortgaged Real Property, to the
extent that such property is not sold, transferred or otherwise disposed by July
31, 2005 (or, if a contract for the sale or transfer of such property has been
signed by such date, October 31, 2005), the U.S. Revolving Borrower shall
deliver the documents described in Section 4.3A(g)(i) and (ii) with respect to
each such Excluded Mortgaged Real Property as promptly after such date as is
reasonably practicable, but in no event later than 30 days thereafter.

ARTICLE 7

NEGATIVE COVENANTS

Holdco and each Borrower hereby covenants and agrees that so long
as this Agreement is in effect and until the Loans, together with interest and
fees and all other obligations hereunder (other than contingent indemnification
obligations to the extent no claim giving rise thereto has been asserted), have
been paid in full and the Commitments hereunder shall have been terminated, it
shall not, and it shall not permit any of its Subsidiaries to, directly or
indirectly:

  7.1       
  Indebtedness.

 

(a)

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

- 109 -

 

                               
(b)            Designate,
or permit or suffer to exist the designation of, any Indebtedness or other
obligation, other than the Obligations, as ''Designated Senior Debt,'' as such
term (or similar term) may be defined in the Senior Subordinated Notes or the
indenture under which they were issued.

  

  7.2        Liens and Negative Pledges.

 

(a)

Contract, create, incur, assume or suffer or permit to exist any
Lien with respect to any of its property of any kind, whether real or personal,
immovable or movable, tangible or intangible, and whether now owned or hereafter
acquired, except for Permitted Liens.

(b)

Enter into any agreement prohibiting the creation or assumption
of any Lien upon its properties or assets, whether now owned or hereafter
acquired, except pursuant to 

(i)

the Credit Documents;

(ii)

any other agreement that does not restrict in any manner
(directly or indirectly) Liens created pursuant to the Credit Documents on
property or assets of any Company (whether now owned or hereafter acquired)
securing the Loans or any Hedging Agreements entered into with any Lender or
Affiliate of a Lender and does not require the direct or indirect granting of
any Lien securing any Indebtedness or other obligation by virtue of the granting
of Liens on or pledge of property of any Company to secure the Loans or any
Hedging Agreements entered into with any Lender or Affiliate of a Lender;

(iii)

any industrial revenue or development bonds, acquisition
agreement or operating leases of real property and equipment entered into in the
ordinary course of business;

(iv)

the Senior Subordinated Notes and any Pushdown Holdco Debt;

(v)

prohibitions against other encumbrances on specific property
encumbered to secure particular associated Indebtedness permitted under
Section 7.1;

(vi)

prohibitions in license agreements under which any Company is the
licensee; and

(vii)

contractual obligations of any Person that becomes a Subsidiary
after the date hereof so long as any such obligations existed at the time such
Person becomes a Subsidiary and are not created in contemplation of or in
connection with such Person's becoming a Subsidiary.

  7.3       
  Nature of Business.

 

Enter into or engage in any business, either directly or through
any Subsidiary, except for the Permitted Business.

  7.4       
  Mergers, Consolidations, Leases and Sales.

 

(a)

Enter into any merger or consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution), except:

(i)

for the transactions otherwise permitted pursuant to paragraph (i)
or (vii) of Section 7.4(b) or pursuant to Section 7.6;

(ii)

any Wholly Owned Subsidiary may be amalgamated or merged with and
into any Obligor, including without limitation the merger or amalgamation of
Holdco with the Canadian Borrower, so long as the succeeding entity is an
Obligor; provided, however, that any merger or amalgamation of
Holdco with the Canadian 

- 110 -

Borrower may only occur so long as no Default or Event of Default
is then existing or would result therefrom;

(iii)

any non-Obligor may be amalgamated or  merged with another
non-Obligor; and

(iv)

any Subsidiary may dissolve, liquidate or wind up its affairs at
any time, so long as such dissolution, liquidation or winding-up, individually
or in the aggregate with other related dissolutions, liquidations or
windings-up, could not reasonably be expected to have a Material Adverse Effect;

provided that in connection with the
foregoing, the appropriate Obligors (including any Succeeding Holdco) shall take
all actions necessary or reasonably requested by the Administrative Agent to
maintain the perfection or perfect, as the case may be, protect and preserve the
Liens on the Collateral granted to the Administrative Agent pursuant to the
Security Document, including the priority thereof, and otherwise comply with the
provisions of Section 6.10 to the extent applicable.

(b)

Effect any Disposition, except:

(i)

any Subsidiary of the Canadian Borrower may sell, lease,
transfer, or otherwise dispose of any or all of its assets (upon voluntary
liquidation or otherwise) to, and any Subsidiary of the Canadian Borrower may
merge, consolidate or amalgamate with and into, any Obligor; provided
that all actions necessary or reasonably requested by the Administrative Agent
shall be taken by the appropriate Obligors to maintain the perfection or
perfect, as the case may be, protect and preserve the Liens on the Collateral
granted to the Administrative Agent pursuant to the Security Documents,
including the priority thereof;

(ii)

Leases of real or personal property owned in fee; provided
that, in the case of any Lease of Mortgaged Property, such Lease shall be (i)
subordinate in all respects to the Liens granted and evidenced by the Security
Documents and shall not, individually or in the aggregate, (x) interfere in any
material respect with the ordinary conduct of the business of any Obligor or (y)
materially impair the use (for its intended purposes) or the value of the
property subject thereto;

(iii)

any Taking or Casualty Event affecting any property or assets;

(iv)

substantially like-kind exchanges of real property or equipment;
provided that any cash in excess of Cdn$2.0 million received by the
Canadian Borrower or any Subsidiary of the Canadian Borrower in connection with
such an exchange (net of all costs and expenses incurred in connection with such
transaction or with the commencement of operation of real property received in
such exchange, including any Taxes paid or payable (or estimated to be payable
by the Canadian Borrower or any Subsidiary acting reasonably and in good faith)
by any Company in respect of the amount so recovered (after application of all
credits and other offsets at the discretion of the Company acting reasonably and
in good faith)) shall constitute Net Available Proceeds from a Disposition and
shall be applied in accordance with Section 3.8(a) and, to the extent the real
property or equipment subject to such exchange constituted Collateral under the
Security Documents, then the property exchanged therefor shall be mortgaged or
pledged contemporaneously with such exchange, as the case may be, for the
benefit of the Secured Parties in accordance with Section 6.10;

- 111 -

                      (v)

the sale or other disposition of any property or asset (other
than Mortgaged Real Property) that, in the reasonable judgment of the Canadian
Borrower, has become uneconomic, obsolete or worn out and that is sold or
disposed of in the ordinary course of business or the trade-in of equipment for
equipment in better condition or of better quality;

(vi)

the sale or other disposition of any property or assets the
aggregate amount of the net proceeds received in respect of which shall not
exceed Cdn$25.0 million during any fiscal year;

(vii)

the sale or other disposition of all or a portion of the assets
constituting the Utility Vehicle Segment;

(viii)

Subsidiaries may (x) be dissolved in accordance with
Section 7.4(a)(iii) and (y) pay dividends in accordance with Section 7.7;

(ix)

Investments permitted by Section 7.6; and

(x)

licenses or sublicenses by the Canadian Borrower or any of its
Subsidiaries of software, Intellectual Property and general intangible and
leases, licenses or subleases of other property in the ordinary course of
business and which do not materially interfere with the business of the Canadian
Borrower or any of its Subsidiaries.

  7.5       
  Sale and Leaseback Transactions.

 

Enter into any arrangement with any Person providing for the
leasing by the Canadian Borrower or any Subsidiary of real or personal property
that has been or is to be sold or transferred by the Canadian Borrower or such
Subsidiary to such Person or to any other Person to whom funds have been or are
to be advanced by such Person on the security of such property or rental
obligations of the Canadian Borrower or such Subsidiary, in each case other than
the lease set forth on Schedule 7.5 and other than Capital Leases,
Synthetic Leases or any sale and leaseback transaction that would be treated as
an Operating Lease under GAAP permitted by Section 7.1 (treating any such
Operating Lease as Indebtedness for this purpose).

  7.6       
  Investments.

 

Make any Investment other than (i) Permitted Investments and (ii)
Investments to the extent permitted by Section 7.1 or 7.15.

  7.7       
  Dividends.

 

Declare, make or pay any Dividend Payments on any shares of any
class of Equity Interests, either directly or indirectly, except that:

(a)

Subsidiaries may pay Dividend Payments pro rata to
the holders of their Equity Interests (giving effect to relative preferences and
priorities);

(b)

Holdco may, and the Canadian Borrower may make Dividend Payments
to Holdco so that Holdco may, redeem or repurchase (or may make dividend
payments so any direct or indirect parent may redeem or repurchase) Equity
Interests of Holdco (or any direct or indirect parent of Holdco) owned by
former, present or future employees, directors, officers and consultants of
Holdco (or any direct or indirect parent of Holdco) or its Subsidiaries or their
assigns, estates 

- 112 -

and heirs in connection with the repurchase provisions of
employee, director or stock option or stock purchase agreements or other
agreements to compensate employees, directors, officers and consultants; 
provided that the aggregate amount expended by Holdco or paid by the
Canadian Borrower pursuant to this paragraph (b) shall not exceed (i) Cdn$2.5 million
in any fiscal year (plus unused amounts carried over from the previous year) or
(ii) Cdn$10.0 million (excluding any such repurchases funded with the proceeds
of any life insurance policy maintained by Holdco or any of its Subsidiaries or
under which Holdco or any of its Subsidiaries is the beneficiary) in the
aggregate since the Effective Date, plus any amounts contributed to Holdco as a
result of resales of such repurchased shares of Equity Interests;

(c)

the Canadian Borrower may make Dividend Payments to Holdco so
that Holdco may pay its Taxes and other fees required to maintain its or any of
its direct or indirect parent's corporate existence and to pay general corporate
and overhead expenses incurred by Holdco in the ordinary course of its business
(or so that Holdco may make Dividend Payments so that any direct or indirect
parent of Holdco may pay such parent's Taxes and other fees required to maintain
its corporate existence and to pay general corporate and overhead expenses
incurred by it in the ordinary course of business); provided that such
Dividend Payments shall not exceed Cdn$2.5 million in any fiscal year;

(d)

Holdco may (or may make Dividend Payments so that any direct or
indirect parent of Holdco may) repurchase Equity Interests of Holdco upon the
surrender of such Equity Interests in satisfaction of all or a portion of the
exercise price of a stock option granted under a stock option plan established
by Holdco (or any direct or indirect parent of Holdco) for the benefit of its
directors, employees or consultants, in each case so long as no payment in cash
or other property is made by Holdco (or any direct or indirect parent of Holdco)
in connection therewith; 

(e)

the Canadian Borrower may make Dividend Payments to Holdco so
that Holdco may make payments in accordance with clauses (9) and (10) of Section
7.9 (or so that Holdco may make Dividend Payments so that any direct or indirect
parent of Holdco may make similar payments); 

(f)

so long as no Default or Event of Default shall have occurred and
be continuing or would result therefrom, the Canadian Borrower may make Dividend
Payments to Holdco, in an aggregate amount not to exceed the Cumulative Growth
Amount, the proceeds of which may be used by Holdco to make payment, including
Dividend Payments; and

(g)

so long as no Default or Event of Default shall have occurred and
be continuing or would result therefrom, Holdco may make payments, including
Dividend Payments, with the Net Available Proceeds from the issuance of
Permitted Holdco Debt and, to the extent such amounts are not required to be
applied to prepay Loans pursuant to Section 3.7(c), the Net Available Proceeds
from Equity Issuances by Holdco.

  7.8       
  Capital Expenditures.

 

Make any Capital Expenditures (other than expenditures relating
to the acquisition of fixed or capital assets acquired in any Permitted
Acquisition), except that the Canadian Borrower and its Subsidiaries may make
Capital Expenditures not exceeding the amount set forth below (the ''Base
Amount'') for each of the fiscal years of the Canadian Borrower (or other
period) set forth below:

- 113 -

	
    Fiscal Year	
    Base Amount
	 	 
	
    Fiscal year ended January 31, 2005	
    Cdn$114,000,000
	
    Fiscal year ended January 31, 2006	
    Cdn$129,000,000
	
    Fiscal year ended January 31, 2007	
    Cdn$122,000,000
	
    Fiscal year ended January 31, 2008	
    Cdn$124,000,000
	
    Fiscal year ended January 31, 2009	
    Cdn$127,000,000
	
    Fiscal year ended January 31, 2010	
    Cdn$127,000,000
	
    Fiscal year ended January 31, 2011	
    Cdn$127,000,000

; provided that for any period set forth above, the Base
Amount set forth above may be increased by a maximum of 50% of the Base Amount
for any such period by carrying over to any such period any portion of the Base
Amount (without giving effect to any increase) not spent in the immediately
preceding period, and that Capital Expenditures in any period shall be deemed
first made from any carryover from the prior period.

  7.9       
  Transactions with Affiliates.

 

Enter into any transaction, including any purchase, sale, lease
or exchange of property or the rendering of any service, with any Affiliate
(each, an ''Affiliate Transaction'') except for transactions which are
otherwise permitted under this Agreement and which are in the ordinary course of
the Canadian Borrower's or a Subsidiary's business and which are upon fair and
reasonable terms no less favorable to the Canadian Borrower or such Subsidiary
than it would obtain in a hypothetical comparable arm's length transaction with
a Person not an Affiliate; provided that nothing in this Section 7.9
shall prohibit Holdco or its Subsidiaries from engaging in the following
transactions:

(1)

transactions between or among Obligors,

(2)

the performance of Holdco's or any of its Subsidiaries'
obligations under any employment contract, collective bargaining agreement,
employee benefit plan, related trust agreement or any other similar arrangement
heretofore or hereafter entered into in the ordinary course of business,

(3)

the payment of fees, compensation and other benefits to, and
customary indemnity and reimbursement provided on behalf of, employees,
officers, directors or consultants of Holdco or any of its Subsidiaries in the
ordinary course of business,

(4)

the maintenance of benefit programs or arrangements for
employees, officers or directors, including vacation plans, health and life
insurance plans, deferred compensation plans, and retirement or savings plans
and similar plans, in each case, in the ordinary course of business,

(5)

transactions permitted by Section 7.7,

(6)

transactions between or among the Canadian Borrower and its
Subsidiaries permitted by Sections 7.1, 7.4(b), 7.6 and 7.15,

(7)

transactions pursuant to agreements with terms in effect on the
Closing Date and included on Schedule 7.9 or pursuant to any amendment,
modification or replacement thereof not disadvantageous to the Lenders in any
material respect,

- 114 -

               
(8)

transactions in connection with any Permitted Floorplan Facility
or Permitted Receivables Facility,

(9)

the payment by the Canadian Borrower or Holdco to the Investors
of (A) an upfront fee payable on the Closing Date in an aggregate amount not to
exceed Cdn$22.2 million, (B) a management fee payable quarterly in an aggregate
amount not to exceed US$2.25 million in any fiscal year and (C) the additional
investment banking, transaction or similar fees not to exceed the amount
provided for in the Management Agreement as in effect on the Closing Date and

(10)

the payment by the Canadian Borrower or Holdco of customary
indemnification and expense reimbursements provided for in the Investor
Agreements.

Notwithstanding any other provision of this Section 7.9, any
transaction entered into by the Canadian Borrower or any of its Subsidiaries
with or for the benefit of any Person, which at the time of entering into such
transaction was not an Affiliate, shall not be subject to the provisions of this
Section 7.9, notwithstanding the fact that after the entering into of such
transaction, such Person would be or thereafter becomes an Affiliate.

  7.10       
  Fiscal Year; Organizational Documents.

 

Change its Organizational Documents if such change, individually
or in the aggregate, could reasonably be expected to have a Material Adverse
Effect or, in the case of the Canadian Borrower, change its fiscal year.

  7.11       
  Limitations on Restrictions on Payment of Dividends.

 

With the exception of Permitted Indebtedness or Permitted Liens
in existence as of the Closing Date, create or otherwise cause, incur, assume,
suffer or permit to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any such Person to (a) pay dividends
or make any other distribution on any of such Person's capital stock, (b) pay
any Indebtedness owed to any Obligor, (c) make Loans or advances to any other
Obligor or (d) transfer any of its property to any Obligor except for
encumbrances or restrictions existing under or by reason of (i) customary
non-assignment or net worth provisions in any lease governing a leasehold
interest, (ii) any agreement or other instrument of a Person existing at the
time it becomes a Subsidiary of the Canadian Borrower; provided that such
encumbrance or restriction is not applicable to any other Person, or any
property of any other Person, other than such Person becoming a Subsidiary of a
Borrower and was not entered into in contemplation of such Person becoming a
Subsidiary of a Borrower, (iii) the Credit Documents, (iv) any agreement or
other instrument of a Company related to any Permitted Receivables Facility,
(v) prohibitions against any other encumbrances on specific property encumbered
to secure payment of particular Indebtedness or a Permitted Lien permitted
hereunder or prohibitions in license agreements under which the Canadian
Borrower or any of its Subsidiaries is the licensee, (vi) customary restrictions
and conditions contained in any agreement relating to the sale of any assets or
property permitted under Section 7.4(b) pending the consummation of such sale
and (vii) customary provisions with respect to the pledge, disposition or
distribution of assets or property contained in joint venture agreements.

7.12

Modifications of Certain Documents, Etc.

Directly or indirectly, consent to any modification, supplement,
waiver or termination of, or amend, in any manner which could reasonably be
expected to be materially adverse to the Lenders, or have a Material Adverse
Effect, any of the provisions of the BRP Acquisition Agreement or any Investor
Agreement.

- 115 -

  7.13       
  Limitation on Activities of Holdco and Other Companies.

 

Notwithstanding anything to the contrary set forth herein,
(a) permit Holdco to conduct any business or hold or acquire any assets (other
than the Equity Interests of the Borrowers and cash sufficient to pay amounts
owing under its Indebtedness and Equity Interests permitted to be incurred
hereunder and to pay its expenses permitted to be paid hereunder) or to have any
operations other than (i) holding such Equity Interests and engaging in
corporate and administrative functions and other activities incidental thereto,
 (ii) the incurrence of Permitted Holdco Debt and the making of Dividend
Payments permitted to be made hereunder, and the incurrence of Additional
Subordinated Debt, and (iii) the amalgamation or merger of Holdco with the
Canadian Borrower in accordance with Section 7.4, (b) permit Sonis
Beteiligungsverwaltungs GmbH to conduct any business or hold or acquire any
assets (other than the Equity Interests of Bombardier-Rotax GmbH & Co. and
Bombardier Rotax Management GmbH and cash sufficient to pay amounts owing under
its Indebtedness and to pay its expenses permitted to be paid hereunder) or to
have any operations other than holding such Equity Interests and engaging in
corporate and administrative functions, (c) permit BRP (Luxembourg) 5 S.à r.l.
to conduct any business or hold or acquire any assets (other than the Equity
Interests of Sonis Beteiligungsverwaltungs GmbH and Lanceolatus Oy and their
successors and cash sufficient to pay amounts owing under its Indebtedness and
to pay its expenses permitted to be paid hereunder) or to have any operations
other than holding such Equity Interests and engaging in corporate and
administrative functions, and (d) at any time prior to the merger or liquidation
of Bombardier Nordtrak OY with or into Lanceolatus Oy, permit Lanceolatus Oy to
conduct any business or hold or acquire any assets (other than the Equity
Interests of Bombardier Nordtrak OY and cash sufficient to pay amounts owing
under its Indebtedness and to pay its expenses permitted to be paid hereunder)
or to have any operations other than holding such Equity Interests and engaging
in corporate and administrative functions.

  7.14       
  Payments or Prepayments of Indebtedness or Modification of Debt Documents.

 

Directly or indirectly:

(a)

make any payment or prepayment (optional or otherwise) on, or
redemption of, or any payments in redemption, defeasance or repurchase (whether
in cash, securities or other Property) of, any Subordinated Debt (other than
Intercompany Notes owed to Obligors or Wholly Owned Subsidiaries and other than
payments by Holdco on its Indebtedness outstanding with respect to Permitted
Holdco Debt and Additional Subordinated Debt that in either case is not an
obligation of the Canadian Borrower) or Senior Subordinated Notes, except
(1) regularly scheduled and mandatory payments to the extent permitted by the
subordination provisions thereof and any reasonable consent solicitation fees
and consent payments (including in connection with a tender offer therefor) on
the Senior Subordinated Notes made in connection with any consent solicitation
(or tender offer and consent solicitation) that eliminates all negative
covenants thereunder permitted by the Indenture to be eliminated through a
supplemental indenture thereto, (2)  the conversion or exchange of any
Indebtedness into shares of common Equity Interests of Holdco, and (3) so long
as no Default or Event of Default shall have occurred and be continuing or would
result therefrom, (i) such payments, prepayments, defeasance, repurchases or
redemptions of Senior Subordinated Notes, Additional Subordinated Debt and
Pushdown Holdco Debt so long as, both immediately before and after any such
action, not less than Cdn$100,000,000 is available to be borrowed under the
Revolving Facilities for an aggregate purchase price (including interest and
fees) not to exceed the Cumulative Growth Amount plus (ii) such payments,
prepayments, defeasance, repurchases or redemptions of Senior Subordinated
Notes, Additional Subordinated Debt and Pushdown Holdco Debt for an aggregate
purchase price not to exceed US$50,000,000 so long as, both immediately before
and after such action, no Loans are outstanding;

- 116 -

                            
(b)

amend, supplement, waive or otherwise modify any of the
provisions of any document relating to the Senior Subordinated Notes:

(i)

which shortens the fixed maturity, or increases the rate or
shortens the time of payment of interest or dividends on, or increases the
amount or shortens the time of payment of any principal, or premium payable
whether at maturity, at a date fixed for prepayment or by acceleration or
otherwise of such Indebtedness, or increases the amount of, or accelerates the
time of payment of, any fees payable in connection therewith;

(ii)

which relates to the affirmative or negative covenants, events of
default, redemption or repurchase provisions, or remedies under the documents or
instruments evidencing such Indebtedness and the effect of which is to subject
any Company to any materially more onerous or more restrictive provisions; or

(iii)

which effects and changes to the subordination provisions (or
related definitions) therein or otherwise materially adversely affects the
interests of the Creditors as senior creditors or the interests of the Creditors
under this Agreement or any other Credit Document in any respect;

(c)

in the event of the occurrence of a ''Change of Control'' (as
defined in the indenture related to the Senior Subordinated Notes), repurchase
any Senior Subordinated Notes, unless the Canadian Borrower shall have (i) made
payment in full of all Obligations and any other amounts then due and owing to
each Creditor hereunder and under any Note and cash collateralized the L/C
Obligations on terms reasonably satisfactory to Administrative Agent or
(ii) made an offer to pay all Obligations and any amounts then due and owing to
each Creditor hereunder and under any Note and to cash collateralize the L/C
Obligations in respect of each Lender and shall have made payment in full
thereof to each such Lender or Administrative Agent which has accepted such
offer and cash collateralized the L/C Obligations in respect of each such Lender
which has accepted such offer; or

(d)

effect any material change in any Senior Subordinated Note
Indenture in connection with an Exchange Offer unless the terms thereof are
reasonably acceptable to the Agents and the Majority Lenders.

Nothing in this Section 7.14 shall preclude the exchange of the
Senior Subordinated Notes for the Exchange Notes.

  7.15       
  Contingent Obligations.

 

Create, incur, assume or suffer to exist any Contingent
Obligation, except:

(a)

the Guarantees;

(b)

guarantees by the Canadian Borrower or any Subsidiary of
obligations of any Company permitted by this Agreement; provided that, in
each case, (i) any such guarantee by an Obligor of obligations of any Company
that is not an Obligor is subordinated to the Obligations and (ii) if the
primary obligation being guaranteed is subordinated to the Obligations, such
guarantees are subordinated to the Obligations on substantially the same basis
as such primary obligation is subordinated to the Obligations;

- 117 -

 

(c)

(i) Contingent Obligations existing on the Closing Date and
described in Schedule 7.15(c) (as amended, restated, extended or replaced
from time to time to the extent the stated amount thereof is not increased) and
(ii) Contingent Obligations relating to any Indebtedness permitted under
Section 7.1 (other than Indebtedness created pursuant to this clause (c)(ii));

(d)

guarantees of obligations to third parties in connection with
relocation of employees of the Canadian Borrower or any of its Subsidiaries, in
an amount which, together with all loans and advances made pursuant to clause (i)
of the definition of ''Permitted Investments,'' shall not exceed US$2.0 million at
any time outstanding;

(e)

Contingent Obligations in connection with workers' compensation
obligations, and in connection with performance, surety and appeal bonds, and
similar obligations incurred in the ordinary course of business, of the Canadian
Borrower and its Subsidiaries;

(f)

Hedging Agreements permitted by Section 7.16 or otherwise entered
into in the ordinary course of business to hedge obligations and not for
speculative purposes;

(g)

with respect to Permitted Floorplan Facilities and Permitted
Receivables Facilities, (i) representations, warranties, covenants and
indemnities that are customary in such financings, and (ii) repurchase and
similar recourse obligations ; provided, however, that the
aggregate amount of such repurchase or similar recourse obligations (other than
recourse limited to the associated accounts receivable, chattel paper and
related assets) of the Canadian Borrower and its Subsidiaries (other than any
Receivable Co.) shall not at any time exceed the greater of Cdn$150.0 million
and 8% of Consolidated Revenues of the Canadian Borrower and its Subsidiaries
(measured over the four Quarters ended on the most recent Test Date);

(h)

endorsements for collection in the ordinary course of business;
and

(i)

other guarantees by the Canadian Borrower or any Obligor incurred
in the ordinary course of business that, taken together with Indebtedness
incurred in reliance on clauses (b) and (p) of the definition of ''Permitted
Indebtedness,'' do not exceed Cdn$50.0 million in the aggregate outstanding at
any time.

  7.16       
  Hedging Agreements.

 

Enter into, create, incur, assume or suffer to exist any Hedging
Agreements or obligations in respect thereof except in the ordinary course of
business for non-speculative purposes and as required pursuant to Section 3.4.

  7.17       
  Financial Covenants.

 

(a)

Maximum Total Leverage Ratio.  (i) The
Total Leverage Ratio shall not on any Test Date exceed the ratio set forth
opposite such period in the table below:

- 118 -

 

	
    Period	
    Ratio
	 	 
	
    February 1, 2004 - July 31, 2004	
    4.75x
	
    August 1, 2004 - October 31, 2005	
    4.50x
	
    November 1, 2005 - January 31, 2006	
    4.25x
	
    February 1, 2006 - July 31, 2006	
    4.00x
	
    August 1, 2006 - January 31, 2007	
    3.75x
	
    February 1, 2007 - January 31, 2008	
    3.50x
	
    February 1, 2008 - January 31, 2009	
    3.25x
	
    February 1, 2009 - January 31, 2011	
    3.00x

and 

(ii)  During any period in which Pushdown Holdco Debt is outstanding and
Loans under either the New Term Facility or any Incremental Facility are
outstanding, the Total Pushdown Debt Leverage Ratio shall not on any Test Date
exceed the ratio set forth opposite such period in the table below: 

	
    Period	
    Ratio
	 	 
	
    February 1, 2004 - July 31, 2004	
    5.75x
	
    August 1, 2004 - October 31, 2005	
    5.50x
	
    November 1, 2005 - January 31,
    2006	
    5.25x
	
    February 1, 2006 - July 31, 2006	
    5.00x
	
    August 1, 2006 - January 31, 2007	
    5.00x
	
    February 1, 2007 - January 31,
    2008	
    5.00x
	
    February 1, 2008 - January 31,
    2009	
    5.00x
	
    February 1, 2009 - January 31,
    2011	
    5.00x

                           
(b)            
Minimum Interest Coverage
Ratio. The Interest Coverage Ratio shall not on any Test Date be less than the
applicable ratio set forth opposite such period in the table below: 

	
    Period	
    Ratio
	 	 
	
    February 1, 2004 - January 31, 2005	
    2.25x
	
    February 1, 2005 - January 31, 2009	
    2.50x
	
    February 1, 2009 - January 31, 2011	
    2.75x

 

ARTICLE 8

EVENTS OF DEFAULT

  8.1       
  Events of Default.

 

Upon the occurrence and during the continuance of any of the
following events (each, an ''Event of Default''):

(a)

Any Borrower shall fail to (i) pay any principal of any Loan or
Note when due in accordance with the terms hereof or thereof or to reimburse the
relevant Issuing Lender in accordance with Section 3.5 or (ii) pay any interest
on any Loan or Note or any other amount payable under any Credit Document within
three Business Days after any such interest or other amount becomes due in
accordance with the terms hereof or thereof; or

- 119 -

                               
(b)

(i) any representation or warranty not qualified by materiality
made or deemed made by any Obligor in any Credit Document shall prove to have
been incorrect in any material respect on or as of the date made or deemed made,
and (ii) any other representation or warranty made or deemed made by any Obligor
in any Credit Document shall prove to have been incorrect on or as of the date
made or deemed made; or

(c)

Any Obligor shall default in the observance or performance of any
agreement contained in Section 6.1(h), 6.1(j), 6.10 or Article 7 of this
Agreement; or

(d)

Any Obligor shall default in the observance or performance of any
other agreement contained in any Credit Document and such default shall continue
unremedied for a period of 30 days after the earlier of (i) the Canadian
Borrower's actual knowledge thereof, and (ii) the Canadian Borrower's receipt of
written notice of such default from the Administrative Agent or any other
Creditor; or

(e)

With respect to any Indebtedness which aggregates in excess of
Cdn$10.0 million (other than the Loans and L/C Obligations) (i) any Obligor or
any of its Subsidiaries shall (A) default in any payment of principal of or
interest on or other amounts in respect of any Indebtedness (other than the
Loans, the L/C Obligations and any intercompany debt) beyond the period of
grace, if any, provided in the instrument or agreement under which such
Indebtedness was created; or (B) default (after giving effect to any applicable
grace period) in the observance or performance of any other agreement or
condition relating to any such Indebtedness or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall
occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness
(or party or parties to such Indebtedness constituting a Hedging Agreement, or
beneficiary or beneficiaries of such Indebtedness constituting a Contingent
Obligation) (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause (determined without regard to whether any
notice or lapse of time is required), such Indebtedness to become due prior to
its stated maturity (or any Indebtedness constituting a Hedging Agreement to be
terminated, or any Indebtedness constituting a Contingent Obligation to become
payable), (ii) any such Indebtedness shall be declared due and payable, or
required to be prepaid other than by regularly scheduled required repayment
prior to the stated maturity thereof, or (iii) any such Indebtedness shall
mature and remain unpaid; or

(f)

(i)  Any Obligor or any Material Subsidiary shall commence any
case, Proceeding or other action (or files a notice of its intention to do so)
(A) under any Applicable Insolvency Law, seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it as bankrupt or
insolvent, making a proposal or seeking reorganization, arrangement, protection,
adjustment, winding-up, liquidation, dissolution, compromise, composition or
other relief with respect to it or its debts, or (B) seeking appointment of a
receiver, interim receiver/manager sequestrator, conservator, administrator,
liquidator, trustee, custodian or other similar official for it or for all or
any material part of its assets, or any Obligor shall make a general assignment
for the benefit of its creditors; or (ii) there shall be commenced against any
Obligor or any Material Subsidiary any case, Proceeding or other action of a
nature referred to in clause (i) above which (A) results in the entry of an
order for relief or any such adjudication or appointment or (B) remains
undismissed, undischarged, unstayed or unbonded for a period of 30 days; or
(iii) there shall be commenced against any Obligor or any Material Subsidiary
any case, Proceeding or other action seeking issuance of a warrant of
attachment, execution, distraint, seizure, execution, attachment, garnishment or
similar process against all or any substantial part of its assets which results
in the entry of an order for any such relief which shall not have been vacated,
discharged or stayed or bonded pending appeal within 30 days from the entry
thereof; or (iv) any 

- 120 -

Obligor or any Material Subsidiary shall take any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the acts set
forth in clause (i), (ii) or (iii) above; (v) any other event occurs which under
the laws of any applicable jurisdiction has an effect equivalent to any of the
events referred to in the foregoing clauses (i) through (iv); or (vi) any
Obligor or any of its Subsidiaries shall commit an act of bankruptcy under the
Bankruptcy and Insolvency Act (Canada), shall become insolvent or shall
generally not, or shall be unable to, shall admit in writing its inability to,
pay its debts as they become due, or shall declare a general moratorium on its
indebtedness or propose a compromise or arrangement between it and any class of
its creditors; or

(g)

An ERISA Event, Canadian Pension Event or non-compliance with
respect to Foreign Plans shall occur that, when taken together with all other
such ERISA Events, Canadian Pension Events and noncompliance with respect to
Foreign Plans that have occurred, could reasonably be expected to result in
liability of the Canadian Borrower and its ERISA Affiliates in an aggregate
amount that exceeds Cdn$10.0 million; or

(h)

One or more judgments or decrees shall be entered against any
Obligor or any of its Material Subsidiaries involving in the aggregate a
liability (to the extent not paid, or covered by insurance as to which the
relevant insurance company has acknowledged coverage) of Cdn$10.0 million or
more and all such judgments or decrees shall not have been vacated, discharged,
stayed or bonded pending appeal within 60 consecutive days after such judgments
become final and nonappealable; or

(i)

Any Credit Document shall cease, for any reason, to be in full
force and effect or any Obligor or any of its Subsidiaries shall so assert in
writing, or any Security Document shall cease to give the Administrative Agent
for the benefit of the Secured Parties the rights, powers and privilege
purported to be created thereby or cease to be effective to grant a perfected
first priority Lien on the Collateral described in such Security Document with
the priority purported to be created thereby, subject to such exceptions as may
be permitted therein or herein, and in the case of any Security Agreement, such
condition shall continue unremedied for 10 days after the earlier of (i) the
Canadian Borrower's actual notice thereof, or (ii) notice thereof being given to
the Canadian Borrower by the Administrative Agent or any Lender; or

(j)

There shall occur a Change of Control; or

(k)

The Canadian Borrower shall fail to make a Disposition Event
Offer or Casualty Event Offer as required pursuant to Section 3.8, or if such
offer is accepted the Relevant Borrower shall have failed to fulfill its
obligations pursuant thereto; or

(l)

Holdco shall cease to own 100% of the Equity Interests of the
Canadian Borrower or the Canadian Borrower shall, directly or indirectly, cease
to own 100% of the Equity Interests of the U.S. Revolving Borrower; or

(m)

The Senior Subordinated Notes shall cease, for any reason, to be
validly subordinated to the Obligations as provided in the indenture therefor,
or any Obligor, any Affiliate of any Obligor, the trustee in respect of the
Senior Subordinated Notes or the holders of at least 25% in aggregate principal
amount of the Senior Subordinated Notes shall so assert; or

(n)

The BRP Acquisition shall not be consummated in all material
respects in accordance with this Agreement and the BRP Acquisition Agreement
substantially concurrently with the making of the initial Extensions of Credit
hereunder, or the BRP Acquisition shall be unwound, 

- 121 -

reversed or otherwise rescinded in whole or in any material part for any reason
(it being understood that the unwinding, reversal or rescission of the BRP
Acquisition with respect to any one Subsidiary that is not a Material Subsidiary
shall not in and of itself constitute an Event of Default under this
clause (n));

then, and in any such event, (x) if such event is an Event of
Default specified in paragraph (f) above with respect to any Obligor,
automatically (i) the Commitments shall immediately terminate and the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement and the Notes shall immediately become due and payable, and (ii) all
obligations of the Canadian Borrower and the U.S. Revolving Borrower in respect
of the Letters of Credit, although contingent and unmatured, shall become
immediately due and payable and the Issuing Lenders' obligations to issue the
Letters of Credit and the Canadian Revolving Lenders' obligations to issue
Bankers' Acceptances or Acceptance Notes shall immediately terminate and (y) if
such event is any other Event of Default, so long as any such Event of Default
shall be continuing, either or both of the following actions may be taken:  (i) with
the written consent of the Majority Lenders, the Administrative Agent may, or
upon the request of the Majority Lenders, the Administrative Agent shall, by
notice to the Canadian Borrower, declare the Commitments and the Issuing
Lenders' obligations to issue the Letters of Credit and the Canadian Revolving
Lenders' obligations to issue Bankers' Acceptances or Acceptance Notes to be
terminated promptly, whereupon the Commitments and such obligations shall
immediately terminate; and (ii) with the consent of the Majority Lenders, the
Administrative Agent may, or upon the request of the Majority Lenders, the
Administrative Agent shall, by notice of default to the Canadian Borrower,
(a) declare all or a portion of the Loans hereunder (with accrued interest
thereon) and all other amounts owing under this Agreement and the Notes to be
due and payable promptly, whereupon the same shall immediately become due and
payable, and (b) declare all or a portion of the obligations of the Canadian
Borrower and the U.S. Revolving Borrower in respect of the Letters of Credit and
of the Canadian Borrower in respect of Bankers' Acceptances, although contingent
and unmatured, to be due and payable promptly, whereupon the same shall
immediately become due and payable and/or demand that the Canadian Borrower
discharge any or all of the obligations supported by the Letters of Credit by
paying or prepaying any amount due or to become due in respect of such
obligations.  Except as expressly provided above in this Article 8, presentment,
demand, protest and all other notices and defenses to payment of any kind are
hereby expressly waived.

  8.2       
  Allocation of Payments After Event of Default.

 

Notwithstanding any other provisions of this Agreement, after the
occurrence and during the continuance of an Event of Default, all amounts
collected or received by the Administrative Agent or the Lenders or any
participant of any Lender or any of them on account of amounts outstanding under
any of the Credit Documents shall be paid over or delivered as follows:

FIRST, to the payment of all out-of-pocket costs and expenses
(including reasonable legal fees and disbursements) of the Agents or any Persons
acting in their stead, including any receiver, manager, receiver/manager or like
Person, or any of them, in connection with enforcing the rights of the Agents
and the Lenders under the Credit Documents or any of them;

SECOND, to the payment of any outstanding and unpaid fees owed to
any of the Agents or Issuing Lenders or Swingline Facility Lenders;

THIRD, to the payment of all out-of-pocket costs and expenses
(including reasonable legal fees and disbursements) of the Administrative Agent
in connection with enforcing any of its rights under any of the Credit
Documents;

- 122 -

                  FOURTH, pro rata to the payment of the outstanding
principal amount of and accrued and unpaid interest on the Loans and of any
principal amounts outstanding under any Hedging Agreements permitted or required
under Section 3.4 to which any Lender or any of its Affiliates is a party, and
to the payment of all other outstanding and unpaid Indebtedness (including in
respect of the Swingline Facilities) owing to any of the Lenders or to any of
the Agents under the Credit Documents which shall not have been repaid pursuant
to the foregoing provisions of this Section 8.2; provided that any
amounts applied to temporarily prepay Revolving Loans under the Canadian
Revolving Facility and/or the U.S. Revolving Facility, as applicable, pursuant
to the provisions of Sections 3.8(a)(iii) and 3.8(b)(iii) shall be paid over and
delivered by the Revolving Lenders to the Administrative Agent for application,
amounts held in the Collateral Account pursuant to Sections 3.8(a)(ii) and (iii)
and 3.8(b)(ii) and (iii), and amounts subject to a Disposition Event Offer or a
Casualty Event Offer accepted by the Relevant Lenders pursuant to Section 3.8(a)
and 3.8(b) shall be applied, pro rata to the payment of all
outstanding and unpaid Indebtedness owing to the Lenders under the New Term
Facility; and

FIFTH, to the payment of the surplus, if any, to whoever may be
lawfully entitled thereto.

ARTICLE 9

GUARANTEE

  9.1       
  The Guarantee.

 

The Guarantors hereby jointly and severally guarantee as a
primary obligor and not as a surety to each Creditor and their respective
successors and assigns the prompt payment in full when due (whether at stated
maturity, by acceleration or otherwise) of the principal of and interest
(including any interest, fees, costs or charges that would accrue but for the
provisions of the Applicable Insolvency Law after any bankruptcy or insolvency
petition under the Applicable Insolvency Law) on the Loans made by the Lenders
to, and the Notes held by each Lender of, Borrower, and all other Obligations
from time to time owing to the Creditors by any Obligor under any Credit
Document or Hedging Agreement relating to the Loans, in each case strictly in
accordance with the terms thereof (such obligations being herein collectively
called the ''Guaranteed Obligations'').  The Guarantors hereby jointly and
severally agree that if any Borrower or other Guarantor(s) shall fail to pay in
full when due (whether at stated maturity, by acceleration or otherwise) any of
the Guaranteed Obligations, the Guarantors will promptly pay the same, without
any demand or notice whatsoever, and that in the case of any extension of time
of payment or renewal of any of the Guaranteed Obligations, the same will be
promptly paid in full when due (whether at extended maturity, by acceleration or
otherwise) in accordance with the terms of such extension or renewal.

  9.2       
  Obligations Unconditional.

 

The obligations of the Guarantors under Section 9.1 shall
constitute a guarantee of payment and are absolute, irrevocable and
unconditional, joint and several, irrespective of the value, genuineness,
validity, regularity or enforceability of the Guaranteed Obligations of any
Obligor under this Agreement, the Notes, the Interest Rate Protection Agreements
or any other agreement or instrument referred to herein or therein, or any
substitution, release or exchange of any other guarantee of or security for any
of the Guaranteed Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever that might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor (except for payment in full).  Without limiting the generality of the
foregoing, it is agreed that the occurrence of any one or more of the following
shall not alter or impair the liability of the Guarantors hereunder, which shall
remain absolute, irrevocable and unconditional under any and all circumstances
as described above:

- 123 -

                       (i)

at any time or from time to time, without notice to the
Guarantors, the time for any performance of or compliance with any of the
Guaranteed Obligations shall be extended, or such performance or compliance
shall be waived;

(ii)

any of the acts mentioned in any of the provisions of this
Agreement or the Notes or any other agreement or instrument referred to herein
or therein shall be done or omitted;

(iii)

the maturity of any of the Guaranteed Obligations shall be
accelerated, or any of the Guaranteed Obligations shall be amended in any
respect, or any right under the Credit Documents or any other agreement or
instrument referred to herein or therein shall be amended or waived in any
respect or any other guarantee of any of the Guaranteed Obligations or any
security therefor shall be released or exchanged in whole or in part or
otherwise dealt with;

(iv)

any lien or security interest granted to, or in favor of, any
Lender or Agent as security for any of the Guaranteed Obligations shall fail to
be perfected; or

(v)

any other Guarantor shall be released.

To the fullest extent permitted by law, the Guarantors hereby
expressly waive diligence, presentment, demand of payment, protest and all
notices whatsoever, and any requirement that any Creditor thereof exhaust any
right, power or remedy or proceed against any Borrower under this Agreement or
the Notes or any other agreement or instrument referred to herein or therein, or
against any other Person under any other guarantee of, or security for, any of
the Guaranteed Obligations.  To the fullest extent permitted by law, the
Guarantors waive any and all notice of the creation, renewal, extension, waiver,
termination or accrual of any of the Guaranteed Obligations and notice of or
proof of reliance by any Creditor thereof upon this guarantee or acceptance of
this guarantee, and the Guaranteed Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred in reliance
upon the Guarantees, and all dealings between any other Obligor and the
Creditors shall likewise be conclusively presumed to have been had or
consummated in reliance upon the Guarantees.  The Guarantees shall be construed
as a continuing, absolute, irrevocable and unconditional guarantee of payment
without regard to any right of offset with respect to the Guaranteed Obligations
at any time or from time to time held by the Creditors, and the obligations and
liabilities of the Guarantors hereunder shall not be conditioned or contingent
upon the pursuit by the Creditors or any other Person at any time of any right
or remedy against any other Obligor or against any other Person which may be or
become liable in respect of all or any part of the Guaranteed Obligations or
against any collateral security or guarantee therefor or right of offset with
respect thereto.  Each Guarantee shall remain in full force and effect and be
binding in accordance with and to the extent of its terms upon the Guarantors
and the successors and assigns thereof, and shall inure to the benefit of the
Creditors, and their respective successors and assigns, notwithstanding that
from time to time during the term of this Agreement there may be no Guaranteed
Obligations outstanding.

  9.3       
  Reinstatement.

 

The obligations of the Guarantors under this Article 9 shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Borrower or other Obligor in respect of the Guaranteed
Obligations is rescinded or must be otherwise restored by any holder of any of
the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy
or reorganization or otherwise.  The Guarantors jointly and severally agree that
they will indemnify each Creditor on demand for all reasonable costs and
expenses (including reasonable fees of counsel) incurred by such Creditor in
connection with such rescission or restoration, including any such costs and
expenses incurred in defending against any claim alleging that such payment
constituted a preference, fraudulent transfer or similar 

- 124 -

payment under any bankruptcy, insolvency or similar law, other
than any costs or expenses resulting from the gross negligence or bad faith of
such Creditor.

  9.4       
  Subrogation, Subordination.

 

Each Guarantor hereby agrees that until the indefeasible payment
and satisfaction in full in cash of all Obligations and the expiration and
termination of the Commitments of the Lenders under this Agreement, it shall not
exercise any right or remedy arising by reason of any performance by it of its
guarantee in this Article 9, whether by subrogation or otherwise, against any
Borrower or any other Guarantor of any of the Guaranteed Obligations or any
security for any of the Guaranteed Obligations.  The payment of any amounts due
with respect to any indebtedness of any Obligor now or hereafter owing to any
Guarantor by reason of any payment by such Guarantor under the Guarantee in this
Article 9 is hereby postponed and subordinated to the prior indefeasible payment
in full in cash of the Guaranteed Obligations.  Each Guarantor agrees that it
will not demand, sue for or otherwise attempt to collect any such indebtedness
of any Obligor to such Guarantor until the Guaranteed Obligations shall have
been indefeasibly paid in full in cash.  If, notwithstanding the foregoing
sentence, any Guarantor shall, prior to the indefeasible payment in full in cash
of the Guaranteed Obligations, collect, enforce or receive any amounts in
respect of such indebtedness, such amounts shall be collected, enforced and
received by such Guarantor as trustee for Creditors and be paid over to
Administrative Agent on account of the Guaranteed Obligations without affecting
in any manner the liability of such Guarantor under the other provisions of the
guarantee contained herein.

  9.5       
  Remedies.

 

The Guarantors jointly and severally agree that, as between the
Guarantors and the Creditor, the obligations of any Borrower under this
Agreement and the Notes may be declared to be promptly due and payable as
provided in Article 8 (and shall be deemed to have become automatically due and
payable in the circumstances provided in Article 8) for purposes of Section 9.1,
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or such obligations from becoming automatically due and payable) as
against any Borrower and that, in the event of such declaration (or such
obligations being deemed to have become automatically due and payable), such
obligations (whether or not due and payable by Borrower) shall promptly become
due and payable by the Guarantors for purposes of Section 9.1.

  9.6       
  Instrument for the Payment of Money.

 

Each Guarantor hereby acknowledges that the Guarantee in this
Article 9 constitutes an instrument for the payment of money, and consents and
agrees that any Creditor, at its sole option, in the event of a dispute by such
Guarantor in the payment of any moneys due hereunder, shall have the right to
bring a motion-action under New York CPLR Section 3213.

  9.7       
  Continuing Guarantee.

 

Each Guarantee in this Article 9 is a continuing guarantee of
payment, and shall apply to all Guaranteed Obligations whenever arising.

  9.8       
  General Limitation on Guarantee Obligations.

 

In any action or proceeding involving any state, federal,
provincial or foreign corporate law, or any state, federal, provincial or
foreign bankruptcy, insolvency, reorganization or other law affecting the rights
of creditors generally, if the obligations of any Guarantor under Section 9.1
would otherwise 

- 125 -

be held or determined to be void, voidable, invalid or
unenforceable, or subordinated to the claims of any other creditors, on account
of the amount of its liability under Section 9.1, then, notwithstanding any
other provision to the contrary, the amount of such liability shall, without any
further action by such Guarantor, any Creditor or any other Person, be
automatically limited and reduced to the highest amount that is valid and
enforceable and not subordinated to the claims of other creditors as determined
in such action or proceeding.

ARTICLE 10

AGENCY PROVISIONS

  10.1       
  Appointment.

 

(a)

Each Lender hereby affirms the appointment of Bank of Montreal
(or any successor thereto) as Administrative Agent hereunder to act as specified
herein and in the other Credit Documents, and each Lender hereby authorizes the
Administrative Agent, as the agent for such Lender, to take all such action on
its behalf under the provisions of this Agreement and the other Credit Documents
and, without limitation, to act as a security trustee or similar capacity on
behalf of the Lenders for the purposes of, and in accordance with the Security
Documents entered into by it in its capacity as Administrative Agent, security
trustee or similar capacity and to exercise all such powers and perform all such
duties as are expressly delegated by the terms hereof and by the other Credit
Documents, including the application of all payments and other benefits arising
thereunder, together with such other powers as are reasonably incidental
thereto.  The Administrative Agent is entitled to claim all Obligations against
the Borrowers that are required to be assigned by the Lenders to the
Administrative Agent in its own name in connection with the Austrian Share
Pledge Agreement.  With respect to any action by the Administrative Agent to
enforce the rights and remedies of the Administrative Agent and the Lenders
under this Agreement and the other Credit Documents, each Lender hereby consents
to the jurisdiction of the court in which such action is maintained, and agrees
to deliver its Note to the Administrative Agent to the extent necessary to
enforce the rights and remedies of the Administrative Agent for the benefit of
the Lenders under the Mortgage in accordance with the provisions hereof and
thereof.

(b)

Each Lender (acting for itself and on behalf of each of its
Affiliates that which are or become party to a Hedging Agreement from time to
time) confirms the appointment and designation of the Administrative Agent (or
any successor thereto) as the person holding the power of attorney (''fondé de
pouvoir'') within the meaning of Article 2692 of the Civil Code of Québec
for the purposes of the hypothecary security to be granted by the Borrowers,
the Guarantors, their respective Wholly Owned Subsidiaries or any one of them
under the laws of the Province of Québec and, in such capacity, the
Administrative Agent shall hold the hypothecs granted under the laws of the
Province of Québec as such fondé de pouvoir in the exercise of the rights
conferred thereunder.  The execution by the Administrative Agent prior to the
Effective Date of any document creating or evidencing any such hypothec for the
benefit of any of the Secured Parties or their respective Affiliates is hereby
ratified and confirmed.  Notwithstanding the provisions of Section 32 of an 
Act respecting the special powers of legal persons (Québec), the
Administrative Agent may acquire and be the holder of any of the bonds secured
by any such hypothec.  Each future Lender that becomes party to this Agreement,
by becoming a party to this Agreement, shall be deemed to have ratified and
confirmed (for itself and on behalf of each of its Affiliates that are or become
party to a Hedging Agreement from time to time) the appointment of the
Administrative Agent as fondé de pouvoir.

(c)

Each Lender hereby designates Merrill Lynch and UBS Securities
LLC as Joint Book Runners and Lead Arrangers of the New Term Facility and BMO
Nesbitt Burns Inc. and Royal Bank of Canada as Joint Book Runners and Lead
Arrangers of the Revolving Facilities.  Each Lender and 

- 126 -

the Borrowers agree that the Lead Arrangers and the Joint Book Runners have no
duties or obligations in such capacity under any Credit Documents to any Lender
or any Obligor.

  10.2       
  Delegation of Duties; Appointment of Agents.

 

The Administrative Agent may execute any of its duties hereunder
or under the other Credit Documents by or through agents or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to
such duties.  In particular and without limiting the generality of the
foregoing, the Administrative Agent may appoint one or more sub-agents in
respect of each Facility and in respect of any Security Document or other
arrangements to protect the Lenders' interests, including any insurance or
deposit agent or trustee, and each of the Lenders and each of the Obligors
hereby consents to the appointment, in the Administrative Agent's sole
discretion, of such agents.

  10.3       
  Duties.

 

Notwithstanding any provision to the contrary elsewhere herein
and in the other Credit Documents, the Agents shall not have any duties or
responsibilities except those expressly set forth herein and therein, or any
(save as expressly provided for in any Credit Document) fiduciary relationship
with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or any of the other
Credit Documents, or shall otherwise exist against the Agents or any of them.
 The provisions of this Section 10.3 are solely for the benefit of the Agents
and the Secured Parties and each of them and none of the Obligors shall have any
rights as a third party beneficiary of the provisions hereof.  In performing
their respective functions and duties under this Agreement and the other Credit
Documents, the Agents shall act solely as an agent of the Lenders, and the
Agents do not assume and shall not be deemed to have assumed any obligation or
relationship of agency or trust with or for any Obligor.  No Agent shall be
responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care.

  10.4       
  Exculpatory Provision.

 

None of the Agents, any Issuing Lender nor any of their
respective officers, directors, employees, agents, attorneys-in-fact or
affiliates shall be (a) liable for any action lawfully taken or omitted to be
taken by it or by any such other Person under or in connection herewith or in
connection with any other Credit Document (except for its or such Person's own
gross negligence or willful misconduct) or (b) responsible in any manner to any
of the Lenders for any recitals, statements, representations or warranties made
by any of the Obligors contained herein or in any of the other Credit Documents
or in any certificate, report, document, financial statement or other written or
oral statement referred to or provided for herein or any of the other Credit
Documents, or received by the Agents or any of them under or in connection
herewith or in connection with the other Credit Documents, or for the
effectiveness, perfection, genuineness, validity, enforceability, collectability
or sufficiency of this Agreement or any of the other Credit Documents, furnished
or made available by the Agents or any of them to the Lenders or any of them or
by or on behalf of the Obligors or any of them to the Agents or any of them or
to any Lender, or for any failure of the Obligors or any of them to perform
their respective obligations hereunder or thereunder.  None of the Agents shall
be required to ascertain or inquire as to the performance or observance of any
of the terms, conditions, provisions, covenants or agreements contained herein
or in any other Credit Document, or as to the use of the proceeds of the Loans,
or of the existence or possible existence of any Default or Event of Default, or
to inspect the properties, books or records of any of the Obligors.  None of the
Agents is a trustee for any of the Lenders and owes no fiduciary duty to the
Lenders or any of them.

- 127 -

  10.5       
  Reliance on Communications.

 

Each of the Agents shall be entitled to rely, and shall be fully
protected in relying, upon any note, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex, teletype
or e-mail message, statement, order or other document or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons, and upon advice and statements of legal counsel
(including counsel to any of the Obligors), independent accountants and other
experts selected by the Agents or any of them with reasonable care.  Each of the
Agents may deem and treat the Lenders and each of them as the owner of its
interests hereunder for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Agents in
accordance with Section 11.3.  The Agents and each of them shall be fully
justified in failing or refusing to take any action under this Agreement or
under any of the other Credit Documents unless they or it, as the case may be,
shall first receive such advice or concurrence of the Majority Lenders or any of
them as they deem appropriate or they or it shall first be indemnified to its or
their satisfaction by the Lenders or any of them against any and all liability
and expense which may be incurred by it or them by reason of taking or
continuing to take any such action.  The Agents and each of them shall in all
cases be fully protected in acting, or in refraining from acting, hereunder or
under any of the other Credit Documents in accordance with a request of the
Majority Lenders (or to the extent specifically provided in Section 11.6, all
the Lenders), and such request and any action taken or failure to act pursuant
thereto shall be binding upon all the Lenders (including their successors and
assigns).

  10.6       
  Notice of Default.

 

An Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless such Agent has
received notice from a Lender or an Obligor referring to the Credit Document,
describing such Default or Event of Default and stating that such notice is a
''notice of default.''  In the event that such Agent receives such a notice, the
Agent shall give prompt notice thereof to the Lenders and to the other Agents
and such Agent shall take such action with respect to such Default or Event of
Default as shall be reasonably directed by the Majority Lenders.

  10.7       
  Non-Reliance on Agent and Other Lenders.

 

Each Lender expressly acknowledges that none of the Agents, nor
any of their respective officers, directors, employees, agents,
attorneys-in-fact or Affiliates, has made any representation or warranty to it
and that no act by the Agents or any of them or any Affiliate thereof
hereinafter taken, including any review of the affairs of any Obligor, shall be
deemed to constitute any representation or warranty by the Agents or any of them
to any Lender.  Each Lender represents to the Agents and each of them that it
has, independently and without reliance upon the Agents or any of them or any
other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
assets, operations, property, financial and other conditions, prospects and
creditworthiness of the Obligors and each of them and has made its own decision
to make its Loans hereunder and enter into this Agreement.  Each Lender also
represents that it will, independently and without reliance upon the Agents or
any of them or any other Lender, and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit analysis,
appraisal and decision in taking or not taking action under this Agreement and
the other Credit Documents, and to make such investigation as it deems necessary
to inform itself as to the business, assets, operations, property, financial and
other conditions, prospects and creditworthiness of the Obligors and each of
them.  Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Agents (which notices, reports and other
documents may be delivered by the Agents via e-mail) or any of them hereunder,
the Agents and each of them shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
operation, assets, property, financial or other 

- 128 -

conditions, prospects or creditworthiness of the Obligors or any of them which
may come into the possession of the Agents or any of them or any of their
respective officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

  10.8       
  Indemnification.

 

The Lenders and each of them agree to indemnify the Agents, the
Swingline Facility Lenders and the Issuing Lenders and each of them in their
respective capacities (to the extent not reimbursed by the Obligors or any of
them and without limiting the obligation of the Obligors and each of them to do
so pursuant to any of the Credit Document) ratably according to their respective
Credit Exposures, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever which may at any time (including, at any time, following
payment in full of the Obligor Obligations) be imposed on, incurred by or
asserted against any Agent, Swingline Facility Lender or Issuing Lender in its
capacity as such in any way relating to or arising out of this Agreement or the
other Credit Documents or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby or any action taken
or omitted by any such Agent under or in connection with any of the foregoing;
provided that no Lender shall be liable for the payment of any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the gross negligence or
willful misconduct of any Agent, Swingline Facility Lender or Issuing Lender.
 If any indemnity furnished to any Agent, Swingline Facility Lender or Issuing
Lender for any purpose shall, in the opinion of such Agent, Swingline Facility
Lender or Issuing Lender, be insufficient or become impaired, such Agent may
call for additional indemnity and cease, or not commence, to do the acts
indemnified against until such additional indemnity is furnished.  The
agreements in this Section 10.8 shall survive the payment of the Obligor
Obligations and all other amounts payable hereunder and under the other Credit
Documents.

  10.9       
  Agents in Their Individual Capacity.

 

Each of the Agents and their respective Affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any
Obligor as though such Agent were not an Agent hereunder.  With respect to the
Extensions of Credit made by it and all other obligations owed to it, such Agent
shall have the same rights and powers under this Agreement as any Lender and may
exercise the same as though it were not an Agent, and the terms ''Lender'' and
''Lenders'' shall include each Agent in its individual capacity.

  10.10       
  Successor Agent.

 

Any Agent may, at any time, resign upon not less than 20 days'
written notice to (a) the other Agents and the Canadian Borrower, in the case
where the resigning Agent is an Agent other than the Administrative Agent and
(b) the Lenders, the other Agents and the Borrowers in the case where the
resigning Agent is the Administrative Agent.  Upon any such resignation, (i) the
Administrative Agent shall have the right to appoint any successor
Administrative Agent within 25 days of such resignation with the consent of the
Borrower (not to be unreasonably withheld) and (ii) if the Administrative Agent
has not appointed any successor Administrative Agent pursuant to clause (i) above,
the Majority Lenders shall have the right to appoint a successor Administrative
Agent within 25 days after such 25th day with the consent of the Borrower (not
to be unreasonably withheld).  If no successor Agent shall have been so
appointed by the Administrative Agent or the Majority Lenders, as the case may
be, and shall have accepted such appointment within such time periods, then the
retiring Agent shall select a successor Agent provided such successor is a
Lender hereunder or a commercial bank organized under the laws of Canada or the
United States of America or any State thereof and has a combined capital
and surplus of at least US$500.0 million or the Equivalent Amount of any such
capital and surplus denominated in any other 

- 129 -

currency.  Upon the acceptance of any appointment as an Agent hereunder by a
successor, such successor Agent shall thereupon succeed to and become vested
with all the rights, powers, privileges and duties of the retiring Agent, and
the retiring Agent shall be discharged from its duties and obligations as such
Agent, as appropriate, under this Agreement and the other Credit Documents, and
the provisions of this Article 10 shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was an Agent under this Agreement.

ARTICLE 11

MISCELLANEOUS

  11.1       
  Notices.

 

Except as otherwise expressly provided herein, all notices and
other communications shall have been duly given and shall be effective (a) when
delivered prior to 4:00 p.m. (local time of the intended recipient) on any
Business Day, or on the next succeeding Business Day if after such time,
(b) when transmitted via telecopy (or other facsimile device) prior to 4:00 p.m.
(local time of the intended recipient) on any Business Day, or on the next
succeeding Business Day if after such time, (c) the second Business Day
following the day on which the same has been delivered prepaid to a reputable
national overnight air courier service and (d) the fifth Business Day following
the day on which the same is sent by certified or registered mail, postage
prepaid, in each case to the respective parties at the address or telecopy
numbers set forth on Schedule 11.1(a), or at such other address as such
party may specify by notice to the other parties hereto given in accordance with
the provisions of this Section 11.1.

  11.2       
  Right of Set-off.

 

In addition to any rights now or hereafter granted under
applicable law or otherwise, and not by way of limitation of any such rights, in
each case to the maximum extent permitted by law, upon the occurrence of an
Event of Default and the commencement of remedies described in Section 9.2, each
Lender and each participant of any Lender is authorized at any time and from
time to time, without presentment, demand, protest or other notice of any kind
to the Obligors or any of them (all of which rights being hereby expressly
waived by the Obligors and each of them) to set off and to appropriate and apply
any and all deposits (general or special) and any other Indebtedness at any time
held or owing by each Lender (including branches, agencies or Affiliates of each
Lender wherever located) to or for the credit or the account of any Obligor
against any Indebtedness of such Obligor to the Lender hereunder, under the
Notes, the other Credit Documents or otherwise, irrespective of whether any
Agent or any Lender shall have made any demand hereunder and although such
obligations, liabilities or claims, or any of them, may be contingent or
unmatured.  The Obligors hereby agree that any Person purchasing a participation
in the Loans and Commitments hereunder pursuant to Section 11.3(c) or 3.13 may
exercise all rights of set-off with respect to its participation interest as
fully as if such Person were a Lender hereunder.

  11.3       
  Benefit of Agreement; Assignments and Participations.

 

(a)

Generally.  This Agreement shall be
binding upon and inure to the benefit of and be enforceable by the respective
successors and assigns of the parties hereto; provided that (i) none of
the Borrowers may assign and transfer any of its interests (except as permitted
herein) without the prior written consent of all of the Lenders, and (ii) the
rights of any Lender to transfer, assign or grant participations in its rights
and/or obligations hereunder shall be limited as set forth below in this
Section 11.3.  Notwithstanding any other provision set forth in this Agreement,
nothing herein shall restrict, prevent or prohibit any Lender from:

- 130 -

                     
(i)

creating security interests in any Loan or Note held by it,
including any pledge or assignment by a Lender of such Loan or Note to any
trustee, lender or agent for such Lenders or to any Federal Reserve Bank or the
Bank of Canada or Canada Deposit Insurance Corporation in accordance with
applicable law, in support of borrowings made by such Lender from, or securities
issues by such Leader to, such entity; provided that (x) no such security
interest shall release such Lender from any of its obligations hereunder and
(y) any transfer to any Person upon the enforcement of such security interest
shall be subject to the provisions of this Section 11.3 concerning assignments
and shall be void and of no force or effect unless in compliance with such
provisions, or

(ii)

granting assignments or participations in such Lender's Loans
and/or Commitments hereunder to any Affiliate of such Lender or to any existing
Lender or Affiliate thereof; provided that consent from the Canadian
Borrower shall be required for assignments to another Lender or Lender Affiliate
if such assignment would by virtue of such assignment subject any Obligor to
additional costs or liability under Section 3.15, 3.16, 3.17 (except during the
continuance of an Event of Default) or 3.19 that such Obligor would not have had
to the Lender effecting such assignment (based on applicable law on the date of
such assignment), which consent shall not be unreasonably withheld or delayed
(it being agreed that it shall not be unreasonable for the Canadian Borrower to
withhold such consent if the Relevant Borrower would by virtue of such
assignment be subject to any additional cost or liability under Section 3.15,
3.16, 3.17 (except during the continuance of an Event of Default) or 3.19 to
such assignee that such Borrower would not have had to the Lender effecting such
assignment (based on applicable law on the date of such assignment) in respect
of Indemnified Taxes imposed by the United States with respect to the U.S.
Revolving Facility or imposed by Canada with the respect to the Canadian
Revolving Facility, but not in respect of any other Indemnified Taxes).

(b)

Assignments.  Each Lender may assign
(which may be non-pro rata among Loans and Commitments) to any Eligible
Person any of its Loans, its Notes, its L/C Interests and its Commitments (but
only with the consent (which consent shall not be unreasonably withheld, delayed
or conditioned, it being agreed that it shall not be unreasonable for the
Canadian Borrower to withhold such consent to an assignment if any Obligor would
by virtue of such assignment be subject to any additional cost or liability
under Section 3.15, 3.16, 3.17 (except during the continuance of an Event of
Default) or 3.19 to such assignee that such Borrower would not have had to the
Lender effecting such assignment (based on applicable law on the date of such
assignment) in respect of Indemnified Taxes imposed by the United States with
respect to the U.S. Revolving Facility or imposed by Canada with the respect to
the Canadian Revolving Facility, but not in respect of any other Indemnified
Taxes) of the Canadian Borrower and the Administrative Agent); provided,
however, that

(i)

except as provided in Section 11.3(a)(ii), no consent of the
Canadian Borrower shall be required in the case of any assignment to another
Lender or any Lender's Affiliate (in which case the assignee and assignor
Lenders shall give written notice of the assignment to the Global Transaction
Coordinator and the Administrative Agent);

(ii)

no consent of the Canadian Borrower shall be required if any
Event of Default shall have occurred and be continuing or if the Administrative
Agent, in consultation with the Canadian Borrower, determines that such
assignment is necessary to achieve a successful syndication; and

(iii)

each assignment, other than to a Lender or any Lender's Affiliate
and other than any assignment effected by the Administrative Agent or any of its
Affiliates in connection with the syndication of the Commitments and/or Loans or
otherwise, shall be in an aggregate amount 

- 131 -

  
  
  

  of at least US$2.0 million in the case of the New Term Facility or the U.S.
  Revolving Facility and US$5.0 million in the case of the Canadian Revolving
  Facility (in each case, unless the assignor's Loans and Commitments are
  reduced to zero or unless the Canadian Borrower and the Administrative Agent
  otherwise consent).

Any assignment of a Loan shall be effective only upon appropriate
entries with respect thereto being made in the Register (and each Note shall
expressly so provide).  Any assignment or transfer of a Loan shall be registered
on the Register only upon surrender for registration of assignment or transfer
of the Note evidencing such Loan (if a Note was issued in respect thereof),
accompanied by an Assignment Agreement, and upon consent thereto by the Canadian
Borrower and the Administrative Agent to the extent required above, one or more
new Notes (if requested by the assignee Lender) in the same aggregate principal
amount shall be issued to the designated assignee (or its nominee) and any old
Notes shall be returned by Administrative Agent to the Canadian Borrower marked
''cancelled.''  Upon execution and delivery by the assignee to the Canadian
Borrower and the Administrative Agent of an Assignment Agreement, and upon
consent thereto by the Canadian Borrower and the Administrative Agent to the
extent required above and, in the case of a Loan, upon appropriate entries being
made in the Register the assignee shall have, to the extent of such assignment
(unless otherwise provided in such assignment with the consent of Administrative
Agent), the obligations, rights and benefits of a Lender hereunder holding the
Commitments, Loans (or portions thereof) and L/C Interests assigned to it (in
addition to the Commitments, Loans and L/C Interests, if any, theretofore held
by such assignee) and the assigning Lender shall, to the extent of such
assignment, be released from the Commitments, Loans (or portion(s) thereof) and
L/C Interests so assigned.  Upon any such assignment (other than during the
initial syndication (as determined by the Global Transaction Coordinator and the
Administrative Agent) or to a Lender or any Affiliate of a Lender) the assignee
Lender shall pay a fee of US$3,500 to Administrative Agent.  Upon any such
assignment, certain rights and obligations of the assigning Lender shall survive
as set forth in Section 11.10.  Each assignment shall be made pursuant to an
Assignment Agreement.

(c)

A Lender may sell or agree to sell to one or more other Persons a
participation in all or any part of any Commitments, Loans and L/C Interests
held by it, in which event each purchaser of a participation (a ''Participant'')
shall be entitled to the rights and benefits of the provisions of Article 3 (and
the Lender shall not be entitled to such rights and benefits in regard to such
participation) (provided, however, that (a) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such Lender's obligations under this Agreement, which shall remain unchanged and
(b) no Participant shall be entitled to receive any greater amount pursuant to
Article 3 than the transferor Lender would have been entitled to receive in
respect of the participation effected by such transferor Lender had no
participation occurred (i) unless the sale of the participation to such
Participant is made with the Relevant Borrower's prior written consent (which
shall not be unreasonably withheld, it being agreed that it shall not be
unreasonable for the Relevant Borrower to withhold consent if any Obligor would
by virtue of such Participations be subject to any additional cost or liability
under Section 3.15, 3.16, 3.17 (except during the continuance of an Event of
Default) or 3.19 to such Participant that such Borrower would not have had to
the Lender effecting such participation (based on applicable law on the date of
such participation) in respect of Indemnified Taxes imposed by the United States
with respect to the U.S. Revolving Facility or imposed by Canada with the
respect to the Canadian Revolving Facility, but not in respect of any other
Indemnified Taxes)) or (ii) except to the extent such entitlement to a greater
payment results from the adoption or a change of any law, rule or regulation or
in the interpretation or application thereof by any Governmental Authority after
such Participant became a Participant but to no greater extent than such
adoption or change affects the Lender) with respect to its participation in such
Commitments, Loans and L/C Interests as if such Participant were a ''Lender'' for
purposes of Article 3, but, except as otherwise provided in Section 3.13, shall
not have any other rights or benefits under any Credit Document (the
Participant's rights against such Lender in respect of such participation to be
those set forth in the agreements executed by such Lender in favor of the
Participant).  All amounts payable by the Borrowers to any 

- 132 -

Lender under Article 2 in respect of its Commitments, Loans and L/C Interests
shall be no greater than the amount that would have applied if such Lender had
not sold or agreed to sell any participation in such Commitments, Loans and L/C
Interests, and as if such Lender were funding each of such Commitments, Loan and
L/C Interests in the same way that it is funding the portion of such
Commitments, Loan and L/C Interests in which no participations have been sold.
 In no event shall a Lender that sells a participation agree with the
Participant to take or refrain from taking any action hereunder or under any
other Credit Document, except that such Lender may agree with the Participant
that it will not, without the consent of the Participant, agree to any
modification or amendment set forth in subclause (a), (b) or (c) of the proviso
to Section 11.6 to the extent such Lender's consent is required therefor.
 Notwithstanding the foregoing, except in the case of an Event of Default which
is continuing, no transfer, assignment or granting of participation in the
Canadian Revolving Facility will be made to a Person other than a Canadian
Resident.

(d)

In addition to the assignments and participations permitted under
the foregoing provisions of this Section 11.3, any Lender may assign and pledge
all or any portion of its Loans and its Notes to any United States Federal
Reserve Bank as collateral security pursuant to Regulation A of the Board of
Governors of the Federal Reserve System and any Operating Circular issued by
such Federal Reserve Bank and, in the case of a Lender that is a fund that
invests in bank loans, any such Lender may assign or pledge all or any portion
of its Loans and its Notes to any holders of obligations owed, or securities
issued, by such fund, as security for such obligations or securities, or to any
trustee for, or any other representative of, such holders, without notice to or
consent of the Relevant Borrowers and Lead Arrangers.  Any transfer as a result
of the foreclosure on such pledge shall be subject to Section 11.3(b).  No such
assignment shall release the assigning Lender from its obligations hereunder.

(e)

A Lender may furnish any information concerning any Company or
any of its Affiliates in the possession of such Lender from time to time to
assignees and participants and to prospective assignees and participants
subject, however, to the provisions of Section 11.18.  In addition, each Agent
may furnish any information concerning any Company or any of its Affiliates in
such Agent's possession to any Affiliate of such Agent, subject, however, to the
provisions of Section 11.18.  The Obligors shall assist any Lender in
effectuating any assignment or participation pursuant to this Section 11.3
(including during syndication) in whatever manner such Lender reasonably deems
necessary, including participation in meetings with prospective transferees.

(f)

Each Person that is or becomes a Lender, Administrative Agent or
Issuing Lender in respect of the Canadian Revolving Facility shall (i) promptly
notify the Canadian Borrower and the Administrative Agent whether  or not it is
a Canadian Resident and, if it is a Canadian Resident, shall deliver to the
Canadian Borrower and the Administrative Agent such certificates, forms,
documents or other evidence as may be applicable and determined by the Canadian
Borrower, acting reasonably, to be reasonably satisfactory to establish that
such Person is a Canadian Resident and (ii) if it becomes a Person other than a
Canadian Resident promptly notify the Canadian Borrower in writing that it is
not a Canadian Resident.

  11.4       
  No Waiver; Remedies Cumulative.

 

No failure or delay on the part of any Agent or any Lender in
exercising any right, power or privilege hereunder or under any other Credit
Document and no course of dealing between any Obligor and any Agent or any
Lender shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege hereunder or under any other Credit
Document preclude any other or further exercise thereof or the exercise of any
other right, power or privilege hereunder or thereunder.  The rights and
remedies herein are cumulative and not exclusive of any other rights or remedies
which any Agent or any Lender would otherwise have.  No notice to or demand on
any Obligor in any case shall entitle any Obligor to any other or further notice
or demand in similar or other circumstances or constitute a waiver 

- 133 -

of the rights of any Agent or any Lender to any other or further action in any
circumstances without notice or demand.

11.5        Payment of Expenses; Indemnification.

(a)

The Obligors, jointly and severally, agree to pay or reimburse
upon demand:

(i)

each Agent for all reasonable out-of-pocket costs and expenses
(including the reasonable fees and expenses of Lead Arrangers' Counsel or other
counsel to Agents selected by Agents (and all local counsel deemed necessary by
Agents)) in connection with (A) any action, suit or other proceeding affecting
the Collateral or any part thereof commenced, in which action, suit or
proceeding the Administrative Agent is made a party or participates or in which
the right to use the Collateral or any part thereof is threatened, or in which
it becomes necessary in the reasonable judgment of the Administrative Agent to
defend or uphold the Liens granted by the Security Documents (including, without
limitation, any action, suit or proceeding to establish or uphold the compliance
of the Collateral with any Requirements of Law), (B) the negotiation,
preparation, execution, delivery, administration and interpretation of the
Credit Documents and the extension and syndication of credit hereunder, (C) the
negotiation or preparation of any modification, supplement or waiver of any of
the terms of any Credit Document (whether or not consummated or effective),
(D) the syndication of the Loans and Commitments, and (E) the administration of
the Credit Documents (including in each case in connection with the protest by
the Obligors of the payment of the Georgia Recording Tax paid upon recordation
of that certain Amendment to Deed to Secure Debt dated the Amendment Effective
Date in Clayton County, State of Georgia);

(ii)

each Creditor for all reasonable out-of-pocket costs and expenses
of such Creditor (including the reasonable fees and out-of-pocket costs and
expenses of legal counsel) in connection with (A) any enforcement or collection
proceedings resulting from any Default, including all manner of participation in
or other involvement with (x) bankruptcy, insolvency, receivership, foreclosure,
winding-up or liquidation proceedings, (y) judicial or regulatory proceedings
and (z) workout, restructuring or other negotiations or proceedings (whether or
not the workout, restructuring or transaction contemplated thereby is
consummated), (B) the enforcement of this Section 11.5 and (C) any documentary
taxes; and

(iii)

the Administrative Agent for all reasonable costs, out-of-pocket
expenses, taxes, assessments and other charges (including reasonable fees and
out-of-pocket expenses of counsel) incurred in connection with (A) any filing,
registration, recording or perfection of any security interest contemplated by
any Credit Document or any other document referred to therein, (B) any
protective advances made by the Administrative Agent under any Mortgage or any
other Security Document and (C) the administration of the Credit Facilities
(including in each case in connection with the protest by the Obligors of the
payment of the Georgia Recording Tax paid upon recordation of that certain
Amendment to Deed to Secure Debt dated the Amendment Effective Date in Clayton
County, State of Georgia).

(b)

The Obligors, jointly and severally, hereby agree to indemnify
each Creditor and its Affiliates and their respective directors, trustees,
officers, employees and agents (each, an ''Indemnitee'') from, and hold
each of them harmless against, and agree that no Indemnitee will have any
liability for, any and all Losses incurred by any of them (including any and all
Losses incurred by any Agent or any Issuing Lender to any Lender, whether or not
any Creditor is a party thereto) directly or indirectly arising out of or by
reason of or relating to the negotiation, execution, delivery, performance,
administration or enforcement of any Credit Document, any of the transactions
contemplated by the Credit Documents  

- 134 -

(including the Transactions), any breach by
any Company of any representation, warranty, covenant or other agreement
contained in any Credit Document in connection with any of the Transactions, the
use or proposed use of any of the Loans or Letters of Credit, the issuance of or
performance under any Letter of Credit or the use of any collateral security for
the Loans (including the exercise by any Creditor of the rights and remedies or
any power of attorney with respect thereto and any action or inaction in respect
thereof), including all amounts payable by any Lender pursuant to Section 10.8,
but excluding any such Losses to the extent determined by a court of competent
jurisdiction in a final nonappealable judgment to have arisen from the gross
negligence, bad faith or willful misconduct of the Indemnitee.

Without limiting the generality of the foregoing, the Obligors,
jointly and severally, will indemnify each Creditor and each other Indemnitee
from, and hold each Creditor and each other Indemnitee harmless against, any
Losses described in the preceding sentence arising under any Environmental Law
as a result of (i) the past, present or future operations of any Company (or any
predecessor in interest to any Company), (ii) the past, present or future
condition of any site or facility, including the Real Property, owned, operated,
leased or used at any time by any Company (or any such predecessor in interest),
or (iii) any Release or threatened Release of any Hazardous Materials at, on,
under or from any such site or facility, including the Real Property, including
any such Release or threatened Release that shall occur during any period when
any Creditor shall be in possession of any such site or facility, including the
Real Property, following the exercise by such Creditor of any of its rights and
remedies hereunder or under any of the Security Documents; provided, 
however, that the indemnity hereunder shall be subject to the exclusions
from indemnification set forth in the preceding sentence.

(c)

To the extent that the undertaking to indemnify and hold harmless
set forth in this Section 11.5 or any other provision of any Credit Document
providing for indemnification is unenforceable because it is violative of any
law or public policy or otherwise, the Obligors, jointly and severally, shall
contribute the maximum portion that each of them is permitted to pay and satisfy
under applicable law to the payment and satisfaction of all indemnified
liabilities incurred by any of the Persons indemnified hereunder.

(d)

The Obligors also agree that no Indemnitee shall have any
liability (whether direct or indirect, in contract or tort or otherwise) for any
Losses to any Obligor or any Obligor's security holders or creditors resulting
from, arising out of, in any way related to or by reason of any matter referred
to in any indemnification or expense reimbursement provisions set forth in any
Credit Document, except to the extent that any Loss is determined by a court of
competent jurisdiction in a final nonappealable judgment to have resulted from
the gross negligence, bad faith or willful misconduct of such Indemnitee.

(e)

The Obligors agree that, without the prior written consent of the
Administrative Agent, Co-Syndication Agents and the Majority Lenders (which
consent shall not be unreasonably withheld, delayed or conditioned) no Obligor
will settle, compromise or consent to the entry of any judgment in any pending
or threatened Proceeding in respect of which indemnification is reasonably
likely to be sought under the indemnification provisions of this Section 11.5
(whether or not any Indemnitee is an actual or potential party to such
Proceeding), unless such settlement, compromise or consent includes an
unconditional written release of each Indemnitee from all liability arising out
of such Proceeding and does not include any statement as to an admission of
fault, culpability or failure to act by or on behalf of any Indemnitee and does
not involve any payment of money or other value by any Indemnitee or any
injunctive relief or factual findings or stipulations binding on any Indemnitee.

- 135 -

11.6        Amendments; Waivers and Consents.

Neither this Agreement nor any of the other Credit Documents nor
any of the terms hereof or thereof may be amended, changed, waived, discharged
or terminated unless such amendment, change, waiver, discharge or termination is
in writing and signed by the Majority Lenders and the Obligors and acknowledged
by the Administrative Agent; provided that no such amendment, change,
waiver, discharge or termination shall without the written consent of each
Lender affected thereby:

(a)

extend the final maturity of any Loan or any portion thereof or
amend the date of any scheduled repayment;

(b)

reduce the rate or extend the time of payment of interest (other
than as a result of waiving the applicability of any post-default increase in
interest rates) thereon or fees hereunder;

(c)

reduce or waive the principal amount of any Loan;

(d)

increase the Commitment of any Lender over the amount thereof
then in effect (it being understood and agreed that a waiver of any Default or
Event of Default or a modification of any of the defined terms contained therein
shall not constitute a change in the terms of any Commitment of any Lender);

(e)

release any Obligor from any obligation under any of the Credit
Documents, except for releases of security from time to time in connection with
dispositions by the Obligors as permitted or contemplated by this Agreement;

(f)

amend, modify or waive any provision of Section 11.2 or 11.5 or
this Section 11.6;

(g)

reduce any percentage specified in, or otherwise modify, the
definition of Majority Lenders;

(h)

consent to the assignment or transfer by any Borrower of any of
its rights and obligations under or in respect of any Credit Document; or 

(i)

expressly amend, modify, supplement or waive any condition
precedent in Section 4.3B to any Loans under the Revolving Facilities without
the written consent of Relevant Lenders having Loans, L/C Obligations and unused
Commitments under the Revolving Facilities holding at least a majority of the
sum of all Loans outstanding, L/C Obligations and unused Commitment under the
Revolving Facilities at such time;

provided, further, that no
amendment, change, waiver, discharge or termination of Section 3.1, 3.7, 3.8,
3.11 or 3.12 that by its terms adversely affects the rights in respect of
payments due to Lenders holding Loans of one Class differently from the rights
of Lenders holding Loans of any other Class shall be effective without the prior
written consent of Lenders holding a majority in interest of the outstanding
Loans and unused Commitments of each adversely affected Class.

Notwithstanding the fact that the consent of all the Lenders is
required in certain circumstances as set forth above, (i) each Lender shall be
entitled to vote as such Lender sees fit on any reorganization plan that affects
the Loans, and each Lender acknowledges that the provisions of Section 1126(c)
of the U.S. Bankruptcy Code and analogous provisions, if any, of other
Applicable Insolvency Law supersede the unanimous consent provisions set forth
herein and (ii) the Majority Lenders 

- 136 -

may consent to allow an Obligor to use cash collateral in the context of a
bankruptcy or insolvency proceeding.

11.7        Counterparts.

This Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument.  It shall not be necessary
in making proof of this Agreement to produce or account for more than one such
counterpart.  Delivery of an executed counterpart of this Agreement by
telefacsimile shall be equally as effective as delivery of an original executed
counterpart of this Agreement.  Any party delivering an executed counterpart of
this Agreement by telecopy also shall deliver an original executed counterpart
of this Agreement but the failure to deliver an original executed counterpart
shall not affect the validity, enforceability and binding effect of this
Agreement.  The foregoing shall apply to each other Credit Document mutatis
mutandis.

11.8        Headings.

The headings of the Sections and subsections hereof are provided
for convenience only and shall not in any way affect the meaning or construction
of any provision of this Agreement.

11.9        Defaulting Lender.

Each Lender understands and agrees that if such Lender is a
Defaulting Lender, then notwithstanding the other provisions of this Agreement,
including Section 11.6, it shall not be entitled to vote on any matter requiring
the consent of the Majority Lenders or to object to any matter requiring the
consent of all Lenders; provided, however, that all other benefits
and obligations under the Credit Documents shall apply to such Defaulting
Lender.

11.10        Survival of Indemnification, Representations and Warranties
and Agent Fee Letter.

All indemnities set forth herein and all representations and
warranties made in any Credit Document shall survive the execution and delivery
of this Agreement, the making of the Loans and the repayment of the Loans and
other Obligations hereunder and termination of the Commitments hereunder.
 Paragraph 10 of the Agent Fee Letter shall survive the execution and delivery
of this Agreement and the making of the Loans hereunder.

11.11        Judgment Currency.

If, for the purposes of obtaining judgment in any court in any
jurisdiction with respect to this Agreement or any other Credit Document, it
becomes necessary to convert into the currency of such jurisdiction (herein
called the ''Judgment Currency'') any amount due in any currency (the ''Payment
Currency'') other than the Judgment Currency, then the amount of the Payment
Currency as so converted shall be the Equivalent Amount expressed in the
Judgment Currency, calculated as at the Business Day immediately before the day
on which judgment is given.  In the event that such Equivalent Amount as so
calculated is different from the such Equivalent Amount calculated as at the
date of payment of the amount due, the Relevant Borrower shall, on the date of
payment, pay such additional or lesser amounts (if any) as may be necessary to
ensure that the amount paid on such date is the amount in the Judgment Currency
which is the Equivalent Amount, expressed in the Payment Currency calculated as
at the date of payment, of the amount then due under this Agreement in the
Payment Currency.  Any additional amount due from the Borrowers under this
provision shall be due as a separate debt and shall not be affected by judgment
being obtained for any other sums due under or in respect of this Agreement.

- 137 -

11.12        Governing Law; Jurisdiction.

(a)

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.  Any legal action or proceeding with respect
to this Agreement or any other Credit Document to which it is a party may be
brought in the courts of the State of New York or any Federal courts sitting
therein and, by execution and delivery of this Agreement, each Borrower hereby
irrevocably attorns for itself and in respect of its property, generally and
unconditionally, the jurisdiction of such courts.  Each Borrower further
irrevocably consents to the service of process out of any of the aforementioned
courts in any such action or proceeding by the mailing of copies thereof by
registered or certified mail, postage prepaid, to it at its address for notice
pursuant to Section 11.1, such service to become effective 15 days after such
mailing.  Nothing herein shall affect the right of any Agent or any Lender to
serve process in any other manner permitted by law or to commence legal
proceedings or to otherwise proceed against any Borrower in any other
jurisdiction.  Each Borrower agrees that a final judgment in any action or
proceeding shall be conclusive and may be enforced in any other jurisdiction by
suit on the judgment or in any other manner provided by law; provided
that nothing in this Section 11.12(a) is intended to impair any Borrower's right
under applicable law to appeal or seek a stay of any judgment.

(b)

Each Borrower hereby irrevocably waives any objection which it
may now or hereafter have to the laying of venue of any of the aforesaid actions
or proceedings arising out of or in connection with this Agreement or any other
Credit Document to which it is a party brought in the courts referred to in
Section 11.12(a) and hereby further irrevocably waives and agrees not to plead
or claim in any such court that any such action or proceeding brought in any
such court has been brought in an inconvenient forum.

11.13        Waiver of Jury Trial.

EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT,
ANY OF THE OTHER CREDIT DOCUMENTS TO WHICH IT IS A PARTY OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREBY.

11.14        Severability.

If any provision of any of the Credit Documents is determined to
be illegal, invalid or unenforceable, such provision shall be fully severable
and the remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.

11.15        Entirety.

This Agreement together with the other Credit Documents represent
the entire agreement of the parties hereto and thereto, and supersede all prior
agreements and understandings, oral or written, if any, or correspondence
relating to any of the Credit Documents or the transactions contemplated herein
and therein.

11.16        Binding Effect.

This Agreement shall be binding upon and inure to the benefit of
the Borrowers, the Agents, the Lenders, and each of them and their respective
successors and permitted assigns.

- 138 -

11.17        Credit Documents.

The Obligations are secured by the Security Documents and are
intended by the parties hereto to be senior in right of payment to all other
Indebtedness of the Obligors except to the extent expressly contemplated hereby.
 All references to this Agreement or to any other Credit Document whether herein
or in any other Credit Document shall refer to this Agreement or such other
Credit Document as the same may be amended, restated, supplemented or otherwise
modified from time to time.

11.18        Confidentiality.

(a)

Each Creditor agrees that it shall, and shall cause its
representatives to, keep confidential any non-public information from time to
time supplied or otherwise made available to it under any Credit Document using
at least the same degree of care as it employs in keeping confidential its own
non-public information, but in no event less than a reasonable degree of care;
provided, however, that nothing herein shall prevent the
disclosure of any such information to the extent disclosure is required by any
Requirement of Law, or to any (a) counsel for any Creditor or to their
respective accountants, (b) bank examiners, auditors or quasi-regulatory
authorities, (c) Affiliate of any Creditor, (d) Creditor, (e)  assignee,
transferee or participant, or any potential assignee, transferee or participant
of all or any portion of any Creditor's rights under this Agreement who is
notified of the confidential nature of the information and agrees to be bound by
the provisions of this Section 11.18, (f) direct and indirect contractual
counterparty in Hedging Agreements or swap agreements or such contractual
counterparty's professional advisor (so long as the contractual counterparty or
professional advisor to such contractual counterparty agrees to be bound by the
provisions of this Section 11.18), (g) rating agency on a confidential basis in
connection with the rating of any indebtedness or other obligation of a Lender
(but not any Borrower) or (h)  other Person to the extent required  in
connection with any litigation to which any one or more Creditors is a party; 
provided that in the event that any Creditor or representative of such
Creditor is required to disclose such information pursuant to this clause (h),
the applicable Creditor or Creditors shall, to the extent practicable, provide
the Canadian Borrower with prompt written notice of such requirement so that the
Canadian Borrower may, at its expense, seek a protective order or other
appropriate remedy and in any such case, the applicable Creditor or Creditors,
or their representatives, shall furnish only that portion of the information
which, in the opinion of their counsel, is legally required and shall exercise
reasonable efforts to obtain reliable assurance that confidential treatment will
be accorded such information.  No Creditor shall have any obligation under this
Section 11.18 to the extent that any such information becomes available on a
non-confidential basis from a source other than a party hereto or that any
information becomes publicly available other than, in each case, as a result of
disclosures by such Creditor or its representative a breach of this
Section 11.18.

(b)

Notwithstanding anything contained in this Agreement or elsewhere
to the contrary (and notwithstanding any other express or implied agreement or
understanding regarding confidentiality), each party hereto and its employees,
representatives and other agents are authorized to disclose to any and all
persons, without limitation of any kind, the tax treatment and tax structure of
the transactions contemplated herein and all materials of any kind (including
opinions or other tax analyses) to the extent such materials relate to such tax
treatment and tax structure.  This authorization does not extend to disclosure
of any other information, including (without limitation) (a) the identity of
participants or potential participants in the transactions, (b) the existence or
status of any negotiations, (c) any pricing information or (d) any financial,
business, legal or personal information of or regarding a participant or
potential participant (or any of their respective affiliates) that is not
related to the tax treatment and tax structure of the transactions.

- 139 -

11.19        Effect of the Amendment and Restatement of the Original Credit
Agreement; Waiver.

(a)

On the Amendment Effective Date, the Original Credit Agreement
shall be amended, restated and superseded in its entirety.  The parties hereto
acknowledge and agree that (i) this Agreement  and the other Credit Documents,
whether executed and delivered in connection herewith or otherwise, do not
constitute a novation, payment and reborrowing or termination of the
''Obligations'' (as defined in the Original Credit Agreement) under the Original
Credit Agreement as in effect prior to the Amendment Effective Date; (ii) such
''Obligations'' are in all respects continuing (as amended and restated hereby)
with only the terms thereof being modified as provided in this Agreement;
(iii) upon the effectiveness of this Agreement all Extensions of Credit of
Lenders outstanding under the Original Credit Agreement immediately before the
effectiveness of this Agreement will be converted into Extensions of Credit of
such Lenders hereunder on the terms and conditions set forth in this Agreement;
provided, in furtherance thereof, that all outstanding Obligations of the
Original U.S. Revolving Borrower in respect of Extensions of Credit to the
Original U.S. Revolving Borrower will be converted into Obligations of the U.S.
Revolving Borrower; and (iv) all Security Documents granted pursuant to the
terms of the Original Credit Agreement are hereby expressly reserved by the
parties and are intended to remain in full force and effect and to secure the
payment and performance of the Obligations.  

(b)

In addition, the Lenders waive, effective on the Amendment
Effective Date, any Default or Event of Default under any Credit Document
arising out of the following events  (i) the offer by the Canadian Borrower in
Fiscal Year 2005 and Fiscal Year 2006 to approximately 200 of its employees of
the option to join an early retirement program; (ii) the change of the name of
the entities set forth on Schedule 11.19(b), in each case without complying with
the notice and other requirements of the Security Documents, and (iii) the
investment of approximately US$50.0 million in BRP Holdings (Hungary) Asset
Management Ltd. in connection with the repayment of amounts outstanding under
the U.S. Term Facility and the other transactions to be consummated on or
immediately prior to the Amendment Effective Date.  

11.20        Patriot Act.

 

The Lenders hereby notify the Borrowers that pursuant to the
requirements of the USA Patriot Act, Title III of Pub. L. 107-56 (signed into
law October 26, 2001) (the "Patriot Act"), each Lender is required to
obtain, verify and record information that identifies each Borrower, which
information includes the name, address, tax identification number and other
information regarding such Borrower that will allow such Lender to identify such
Borrower in accordance with the Patriot Act.  This notice is given in accordance
with the requirements of the Patriot Act and is effective as to each Lender.

[Remainder of Page Intentionally Left Blank] 

 

- 140 -

                   
IN WITNESS WHEREOF, each
of the parties hereto has caused a counterpart of this Agreement to be duly
executed and delivered as of the date first above written. 

  	J.A. BOMBARDIER (J.A.B.)
      INC.,
	as Holdco and a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BOMBARDIER RECREATIONAL
      PRODUCTS
	INC.,
	as Canadian Borrower and
      Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP US INC.,
	as U.S. Revolving Borrower
      and Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP HOLDINGS (USA) INC.,
	as Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP HOLDING LP,
	as Guarantor
	 
	
      By:
	
      Name:
	Title:

- S-1 -

  	BRP LLC,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP (BARBADOS) INC.,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP HOLDINGS (HUNGARY)
      ASSET
	MANAGEMENT LIMITED
      LIABILITY
	COMPANY
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP NOVA SCOTIA ULC,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	4186524 CANADA INC.,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:

- S-2 -

  	4279174 CANADA INC.,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP (Luxembourg) 1 S.à r.l.,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP (Luxembourg) 2 S.à r.l.,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP (Luxembourg) 3 S.à r.l.,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP (Luxembourg) 4 S.à r.l.,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:
	 
	BRP (Luxembourg) 5 S.à r.l.,
	as a Guarantor
	 
	
      By:
	
      Name:
	Title:

- S-3 -

  	AIRCRAFT ENGINE SERVICES (AES)
      INC.,
	as a Guarantor
	 
	 
	 
	
      By:
	
      Name:
	Title:
	 
	 
	 
	BRP AUSTRALIA PTY LTD.,
	as a Guarantor
	 
	 
	 
	
      By:
	
      Name:
	Title:
	 
	 
	 
	BRP JAPAN LTD.,
	as a Guarantor
	 
	 
	 
	
      By:
	
      Name:
	Title:
	 
	 
	 
	BRP MEXICO S.A. DE C.V.,
	as a Guarantor
	 
	 
	 
	
      By:
	
      Name:
	Title:

- S-4 -

  	 
	 
	MERRILL LYNCH & CO.,
	MERRILL LYNCH, PIERCE, FENNER & SMITH
	INCORPORATED,
	as Global Transaction Coordinator, as Joint Book
	Runner and Joint Lead Arranger of the New Term Facility
	and as Co-Syndication Agent
	 
	
      By:
	
      Name:
	Title:
	 
	ROYAL BANK OF CANADA,
	as Canadian Transaction Coordinator and as Joint Book
	Runner and Joint Lead Arranger of the Revolving
	Facilities
	 
	
      By:
	
      Name:
	Title:
	 
	UBS SECURITIES LLC,
	as Joint Book Runner and Joint Lead Arranger of the
	New Term Facility and as Co-Syndication Agent
	 
	
      By:
	
      Name:
	Title:
	 
	
      By:
	
      Name:
	Title:
	 
	BMO NESBITT BURNS INC.,
	as Joint Book Runner and Joint Lead Arranger of the
	Revolving Facilities
	 
	
      By:
	
      Name:
	Title:

- S-5 -

  	BANK OF MONTREAL,
	as the Administrative Agent
	 
	
      By:
	
      Name:
	Title:

 

 

 

- S-6 -

  	MERRILL LYNCH CAPITAL
      CORPORATION,
	as a Lender
	 
	
      By:
	
      Name:
	Title:

 

 

- S-7 -

  	UBS LOAN FINANCE LLC,
	as a Lender
	 
	
      By:
	
      Name:
	Title:
	 
	
      By:
	
      Name:
	Title:

 

 

- S-8 -

  	BANK OF MONTREAL,
	as a Lender
	 
	
      By:
	
      Name:
	Title:

 

 

- S-9 -

  	ROYAL BANK OF CANADA,
	as a Lender
	 
	
      By:
	
      Name:
	Title:

 

 

- S-10 -

  	GENERAL ELECTRIC CAPITAL
	CORPORATION,
	as a Lender
	 
	
      By:
	
      Name:
	Title:

 

 

- S-11 -

  	CAISSE DE DÉPÔT ET
      PLACEMENT DU
	QUÉBEC,
	as a Lender
	 
	
      By:
	
      Name:
	Title:
	 
	
      By:
	
      Name:
	Title:

 

 

- S-12 -

  	GE CANADA FINANCE HOLDING
      COMPANY
	as a Lender
	 
	
      By:
	
      Name:
	Title:

 

 

- S-13 -

  	MERRILL LYNCH CAPITAL
      CANADA INC.
	as a Lender
	 
	
      By:
	
      Name:
	Title:

 

 

 

- S-14 -

  	ROYAL BANK OF
      CANADA
	as a Lender
	 	 
	
      By:	 
	
      Name:	
      Suzanne Kaicher
	Title:	Attorney - in -
      Fact

 

 

 

- S-15 -

  	UBS AG CANADA BRANCH
	as a Lender
	 
	
      By:
	
      Name:
	Title:

 

 

 

- S-16 -

  	BANK OF MONTREAL, CHICAGO
      BRANCH
	as a Lender
	 
	
      By:
	
      Name:
	Title:

 

 

 

- S-17 -

  	UBS LOAN FINANCE, LLC
	as a Lender
	 
	
      By:
	
      Name:
	Title:

 

 

 

- S-18 -

  	ROYAL BANK OF CANADA
	as a Lender to Bombardier
      Recreational Products Inc.
	as the Canadian borrower
	 
	 
	 
	
      By:
	
      Name:
	Title:

 

 

 

- S-19 -

 

 

 

 

 

 

 

- S-20 -

SCHEDULE 3.7(b) 

  
  	Periodic
      Repayments
	 	 
	
      Payment Date	
      New Term Facility
	
      June 30, 2005	
      0.5%
	December 31, 2005	0.5%
	June 30, 2006	0.5%
	December 31, 2006	0.5%
	June 30, 2007	0.5%
	December 31, 2007	0.5%
	June 30, 2008	0.5%
	December 31, 2008	0.5%
	June 30, 2009	0.5%
	December 31, 2009	0.5%
	June 30, 2010	0.5%
	January 31, 2011	94.5%

  

 

 

- S-21 -Bombardier Recreational Products Inc - Exhibit 4.2 - Prepared By TNT
Filings Inc.

 

AMENDED AND RESTATED U.S. SECURITY AGREEMENT  

By

BRP US Inc.,

as U.S. Revolving Borrower

and

THE GUARANTORS PARTY HERETO FROM TIME TO TIME

and

BANK OF MONTREAL,  

as Administrative Agent

______________________

Dated as of December 18, 2003

and Amended and Restated as of February 9, 2005

		
    TABLE OF CONTENTS
	
	 	 	Page
	 	 	 
	PREAMBLE	 	1
	RECITALS	 	1
	AGREEMENT	 	2
	 	 	 
	 	ARTICLE I	 
	 	 	 
	 	DEFINITIONS AND INTERPRETATION	 
	SECTION 1.1.	Definitions	3
	SECTION 1.2.	Interpretation	11
	SECTION 1.3.	Perfection Certificate	12
	 	ARTICLE II	 
	 	 	 
	 	GRANT OF SECURITY AND SECURED
    OBLIGATIONS	 
	SECTION 2.1.	Pledge	12
	SECTION 2.2.	Obligations	13
	SECTION 2.3.	Security Interest	13
	 	ARTICLE III	 
	 	 	 
	 	PERFECTION; SUPPLEMENTS; FURTHER
    ASSURANCES;	 
	 	USE OF PLEDGED COLLATERAL	 
	SECTION 3.1.	Delivery of Certificated
    Securities Collateral	14
	SECTION 3.2.	Perfection of Uncertificated
    Securities Collateral	14
	SECTION 3.3.	Financing Statements and Other
    Filings; Maintenance of Perfected	 
	 	Security Interest	14
	SECTION 3.4.	Other Actions	15
	SECTION 3.5.	Joinder of Additional Guarantors	19
	SECTION 3.6.	Supplements; Further Assurances	19
	 	ARTICLE IV	 
	 	 	 
	 	REPRESENTATIONS, WARRANTIES AND
    COVENANTS	 
	SECTION 4.1.	Title	20
	SECTION 4.2.	Validity of Security Interest	20
	SECTION 4.3.	Defense of Claims/Transferability
    of Pledged Collateral	20
	SECTION 4.4.	Other Financing Statements	21

-i- 

	 	 	Page
	SECTION 4.5.	Chief Executive Office; Change of Name;
    Jurisdiction of	 
	 	Organization	21
	SECTION 4.6.	Location of Inventory and Equipment	22
	SECTION 4.7.	Corporate Names; Prior Transactions	22
	SECTION 4.8.	Due Authorization and Issuance	22
	SECTION 4.9.	No Conflicts, Consents, etc	23
	SECTION 4.10.	Pledged Collateral	23
	SECTION 4.11.	Insurance	23
	SECTION 4.12.	Payment of Taxes; Compliance with Laws;
    Contesting Liens;	 
	 	Claims	23
	 	ARTICLE V	 
	 	 	 
	CERTAIN PROVISIONS CONCERNING
    SECURITIES COLLATERAL	 
	SECTION 5.1.	Pledge of Additional Securities Collateral	24
	SECTION 5.2.	Voting Rights; Distributions; etc	24
	SECTION 5.3.	Operative Agreements	25
	SECTION 5.4.	Defaults, etc	26
	SECTION 5.5.	Certain Agreements of Pledgors as Issuers and
    Holders of Equity	 
	 	Interests	26
	 	ARTICLE VI	 
	 	 	 
	 	CERTAIN PROVISIONS CONCERNING INTELLECTUAL	 
	 	PROPERTY COLLATERAL	 
	SECTION 6.1.	Grant of License	26
	SECTION 6.2.	Protection of Administrative Agent's Security	26
	SECTION 6.3.	After-Acquired Property	27
	SECTION 6.4.	Modifications	28
	SECTION 6.5.	Litigation	28
	 	ARTICLE VII	 
	 	 	 
	 	CERTAIN PROVISIONS CONCERNING ACCOUNTS	 
	SECTION 7.1.	Maintenance of Records	29
	SECTION 7.2.	Legend	29
	SECTION 7.3.	Modification of Terms, etc	29
	SECTION 7.4.	Collection	29
	 	ARTICLE VIII	 
	 	 	 
	 	TRANSFERS	 
	SECTION 8.1.	Transfers of Pledged Collateral	30

 

-ii- 

 

	 	 	Page
	 	ARTICLE IX	 
	 	 	 
	 	REMEDIES	 
	SECTION 9.1.	Remedies	30
	SECTION 9.2.	Notice of Sale	32
	SECTION 9.3.	Waiver of Notice and Claims	32
	SECTION 9.4.	Certain Sales of Pledged Collateral	32
	SECTION 9.5.	No Waiver; Cumulative Remedies	33
	SECTION 9.6.	Certain Additional Actions Regarding
    Intellectual Property	34
	 	ARTICLE X	 
	 	 	 
	COLLATERAL ACCOUNT/PROCEEDS OF CASUALTY
    EVENTS AND COLLATERAL
	 	DISPOSITIONS/APPLICATION OF PROCEEDS	 
	SECTION 10.1.	Collateral Account	34
	SECTION 10.2.	Proceeds of Casualty Events and Collateral
    Dispositions	34
	SECTION 10.3.	Application of Proceeds	35
	 	ARTICLE XI	 
	 	 	 
	 	MISCELLANEOUS	 
	SECTION 11.1.	Concerning Administrative Agent	35
	SECTION 11.2.	Administrative Agent May Perform;
    Administrative Agent	 
	 	Appointed Attorney-in-Fact	36
	SECTION 11.3.	Continuing Security Interest; Assignment	37
	SECTION 11.4.	Termination; Release	37
	SECTION 11.5.	Modification in Writing	38
	SECTION 11.6.	Notices	38
	SECTION 11.7.	GOVERNING LAW	38
	SECTION 11.8.	CONSENT TO JURISDICTION AND SERVICE OF
    PROCESS;	 
	 	WAIVER OF JURY TRIAL	38
	SECTION 11.9.	Severability of Provisions	39
	SECTION 11.10.	Execution in Counterparts	39
	SECTION 11.11.	Business Days	39
	SECTION 11.12.	Waiver of Stay	39
	SECTION 11.13.	No Credit for Payment of Taxes or Imposition	39
	SECTION 11.14.	No Claims Against Administrative Agent	39
	SECTION 11.15.	No Release	40
	SECTION 11.16.	Obligations Absolute	40
	 	 	 
	SIGNATURES	 	 
	SCHEDULE 3.4	Locations for Landlord Lien Waivers/Bailee
    Letters	 
	SCHEDULE 4.9	Required Consents	 

-iii- 

	EXHIBIT 1	Form of Issuer's
    Acknowledgment
	EXHIBIT 2	Form of Securities
    Pledge Amendment
	EXHIBIT 3	Form of Joinder
    Agreement
	EXHIBIT 4	Form of Control
    Agreement Concerning Securities Accounts
	EXHIBIT 5	Form of Control
    Agreement Concerning Deposit Accounts
	EXHIBIT 6	Form of Copyright
    Security Agreement
	EXHIBIT 7	Form of Patent
    Security Agreement
	EXHIBIT 8	Form of Trademark
    Security Agreement

-iv- 

 

AMENDED AND RESTATED U.S. SECURITY AGREEMENT

This AMENDED AND RESTATED U.S. SECURITY AGREEMENT dated as of December 18, 2003 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this “Agreement”) was originally made by BRP Holdings (USA) Inc. (formerly known as BRP (USA) Inc.), a corporation existing under the laws of Delaware (the “Original U.S. Revolving Borrower”), BRP Holdings LP, a limited partnership formed under the laws of Delaware (the “Original U.S. Term Borrower” and, together with the Original U.S. Revolving Borrower, the “Original U.S. Borrowers”), and the Guarantors listed on the signature pages hereto at such date (the “Original Guarantors”) or from time to time party hereto by execution of a joinder agreement (the “Additional Guarantors” and, together with the Original Guarantors, the “U.S. Guarantors”), as pledgors, assignors and debtors (the Original U.S. Borrowers, together with the U.S. Guarantors, in such capacities and in the capacities described below and together with any successors in such capacities, the “Pledgors” and each, a “Pledgor”), in favor of the BANK OF MONTREAL, in its capacity as Administrative Agent pursuant to the Credit Agreement (as hereinafter defined), as pledgee, assignee and secured party (in such capacities and together with any successors in such capacities, the “Administrative Agent”) is amended and restated as of February 9, 2005.

R E C I T A L S  :

A.

The Original U.S. Borrowers, the Original Guarantors and the Administrative Agent, in connection with the execution and delivery of this Agreement, entered into that certain credit agreement, dated as of December 18, 2003 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Original Credit Agreement”) among Bombardier Recreational Products Inc., as Canadian Borrower, the Original U.S. Revolving Borrower, the Original U.S. Term Borrower, J.A. Bombardier (J.A.B.) Inc. and the Guarantors party thereto from time to time, the Lenders party thereto from time to time, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Global Transaction Coordinator, Royal Bank of Canada, as Canadian Transaction Coordinator, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and UBS Securities LLC, as Joint Book Runners and Lead Arrangers of the Term Facilities, BMO Nesbitt Burns Inc. and Royal Bank of Canada, as Joint Book Runners and Lead Arrangers of the Revolving Facilities, Bank of Montreal, as Administrative Agent, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC and Royal Bank of Canada, as Co-Syndication Agents and General Electric Capital Corporation, as Documentation Agent.

B.

The Canadian Borrower and the Original U.S. Term Borrower are prepaying the entire outstanding amount of the Canadian Term Facility and the U.S. Term Facility under the Original Credit Agreement (each as defined therein), and in connection with such prepayment and to make such other amendments as are evidenced thereby, the Lenders, Merrill Lynch, Royal Bank of Canada, UBS Securities LLC, BMO Nesbitt Burns Inc., Bank of Montreal, the Borrowers and the Guarantors are entering into an amendment and restatement of the Original Credit Agreement as of February 9, 2005 (the “Credit Agreement”).

                               
C.           BRP US Inc.
(formerly known as Bombardier Motor Corporation of America), a Delaware
corporation, is becoming the primary obligor (the "U.S. Revolving Borrower")
under the Credit Agreement under the U.S. Revolving Facility (as defined
therein), and the Original U.S. Borrowers have guaranteed the obligations of the
U.S. Revolving Borrower under the Credit Agreement and the other Credit
Documents. 

                               
D.           Each Original
Guarantor, pursuant to the Original Credit Agreement, among other things,
guaranteed the obligations of the Original U.S. Borrowers under the Original
Credit Agreement and the other Credit Documents, and (other than the U.S.
Revolving Borrower), pursuant to the Credit Agreement, among other things, have
reaffirmed their guarantee of the obligations of the U.S. Revolving Borrower
under the Credit Agreement and the other Credit Documents. 

                               
E.           Each Pledgor has,
pursuant to the Original Credit Agreement, among other things, unconditionally
guaranteed the obligations of the Canadian Borrower under the Credit Agreement
and the other Credit Documents, and, pursuant to the Credit Agreement, among
other things, have reaffirmed their guarantee of the obligations of the Canadian
Borrower under the Credit Agreement and the other Credit Documents. 

                               
F.           The Pledgors have
received, and will receive, substantial benefits from the execution, delivery
and performance of the obligations under the Credit Agreement and the other
Credit Documents and each is, therefore, willing to enter into this Agreement.

                               
G.           The Pledgors
have, from time to time entered into, and it is contemplated that one or more of
the Pledgors may enter into, one or more Interest Rate Protection Agreements,
foreign currency exchange agreements, commodity price protection agreements or
other interest or currency exchange rate or commodity price hedging arrangements
with one or more of the Lenders or their respective Affiliates designed to alter
the risks arising from the fluctuations in interest rates, currency values or
commodity prices with respect to Loans under the Credit Agreement (any such
agreement or arrangement, a "Hedging Agreement"). 

                               
H.           Each Pledgor is
or, as to Pledged Collateral (as hereinafter defined) acquired by such Pledgor
after the date hereof will be, the legal and/or beneficial owner of the Pledged
Collateral pledged by it hereunder. 

                               
I.           This Agreement is
given by each Pledgor in favor of the Administrative Agent for the benefit of
the Secured Parties (as hereinafter defined) to secure the payment and
performance of all of the Obligations. 

                               
J.           It is a condition
to the obligations of the Lenders to make the Loans under the Credit Agreement
and a condition to any Lender issuing Letters of Credit under the Credit
Agreement or entering into any Hedging Agreement that each Pledgor execute and
deliver the applicable Credit Documents, including this Agreement. 

 

A G R E E M E N T  :

NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Pledgor and the Administrative Agent hereby agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

SECTION 1.1.

Definitions

.    Unless otherwise defined herein, terms used herein that are defined in the UCC (as hereafter defined) shall have the meanings assigned to them in the UCC.

(a)

Capitalized terms used but not otherwise defined herein that are defined in the Credit Agreement shall have the meanings assigned to them in the Credit Agreement.

(b)

References to “$” in this Agreement shall mean Canadian Dollars unless the context otherwise requires (or the Equivalent Amount thereof).

(c)

The following terms shall have the following meanings:

“Additional Guarantors” shall have the meaning assigned to such term in the Preamble hereof.

“Additional Pledged Interests” shall mean, collectively, with respect to each Pledgor, (i) all options, warrants, rights, agreements, additional membership, partnership or other equity interests of whatever class of any issuer of Initial Pledged Interests or any interest in any such issuer, together with all rights, privileges, authority and powers of such Pledgor relating to such interests in each such issuer or under the Operative Agreement of any such issuer, and the certificates, instruments and agreements representing such membership, partnership or other interests and any and all interest of such Pledgor in the entries on the books of any financial intermediary pertaining to such membership, partnership or other equity interests from time to time acquired by such Pledgor in any manner and (ii) all membership, partnership or other equity interests, as applicable, of each limited liability company, partnership or other entity (other than a corporation) hereafter acquired or formed by such Pledgor and all options, warrants, rights, agreements, additional membership, partnership or other equity interests of whatever class of such limited liability company, partnership or other entity, together with all rights, privileges, authority and powers of such Pledgor relating to such interests or under the Operative Agreement of any such issuer, and the certificates, instruments and agreements representing such membership, partnership or other equity interests and any and all interest of such Pledgor in the entries on the books of any financial intermediary pertaining to such membership, partnership or other interests, from time to time acquired by such Pledgor in any manner.

 

“Additional Pledged Shares” shall mean, collectively, with respect to each Pledgor, (i) all options, warrants, rights, agreements, additional shares of capital stock of whatever class of any issuer of the Initial Pledged Shares or any other equity interest in any such issuer, together with all rights, privileges, authority and powers of such Pledgor relating to such interests issued by any such issuer under the Operative Agreement of any such issuer, and the certificates, instruments and agreements representing such interests and any and all interest of such Pledgor in the entries on the books of any financial intermediary pertaining to such interests, from time to time acquired by such Pledgor in any manner and (ii) all the issued and outstanding shares of capital stock of each corporation hereafter acquired or formed by such Pledgor and all options, warrants, rights, agreements or additional shares of capital stock of whatever class of such corporation, together with all rights, privileges, authority and powers of such Pledgor relating to such shares or under the Operative Agreement of such corporation, and the certificates, instruments and agreements representing such shares and any and all interest of such Pledgor in the entries on the books of any financial intermediary pertaining to such shares, from time to time acquired by such Pledgor in any manner.

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

“Agreement” shall have the meaning assigned to such term in the Preamble hereof.
 

“Bailee Letter” shall have the meaning assigned to such term in Section 3.4(g) hereof.

“Claims” shall mean any and all property and other taxes, assessments and special assessments, levies, fees and all governmental charges imposed upon or assessed against, and all claims (including landlords', carriers', mechanics', workmen's, repairmen's, laborers', materialmen's, suppliers' and warehousemen's Liens and other claims arising by operation of law) against, all or any portion of the Pledged Collateral.

“Collateral Account” shall mean the collateral account established pursuant to Section 10.1 hereof and all property from time to time on deposit therein.

“Commodity Account Control Agreement” shall mean a commodity account control agreement in form and substance that is reasonably satisfactory to the Pledgor and the Administrative Agent.

“Contested Liens” shall mean, collectively, any Liens incurred in respect of any Claims to the extent that the amounts owing in respect thereof are not yet delinquent or are being contested and otherwise comply with the provisions of Section 4.12 hereof; provided, however, that such Liens shall in all respects be subject and subordinate in priority to the Lien and security interest created and evidenced by this Agreement, except if and to the extent that the law or regulation creating, permitting or authorizing such Lien provides that such Lien must be superior to the Lien and security interest created and evidenced hereby.

“Contracts” shall mean, collectively, with respect to each Pledgor, all sale, service, performance, equipment or property lease contracts, agreements and grants and all other contracts, agreements or grants (in each case, whether written or oral, or third party or intercompany), between such Pledgor and third parties, and all assignments, amendments, restatements, supplements, extensions, renewals, replacements or modifications thereof.

 

“Control” shall mean (i) in the case of each Deposit Account, “control,” as such term is defined in Section 9-104 of the UCC, (ii) in the case of any Security Entitlement, “control,” as such term is defined in Section 8-106 of the UCC, and (iii) in the case of any Commodity Contract, “control,” as such term is defined in Section 9-106 of the UCC.  

“Control Agreements” shall mean, collectively, the Deposit Account Control Agreement, the Securities Account Control Agreement and the Commodity Account Control Agreement.

“Copyright Security Agreement” shall mean an agreement substantially in the form annexed hereto as Exhibit 6.

“Copyrights” shall mean, collectively, with respect to each Pledgor, all copyrights (whether statutory or common law, whether established or registered in the United States or any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished) and all copyright registrations and applications made by such Pledgor, in each case, whether now owned or hereafter created or acquired by or assigned to such Pledgor, including the copyrights, registrations and applications listed in Schedule 15(b) annexed to the Perfection Certificate, together with any and all (i) rights and privileges arising under applicable law with respect to such Pledgor's use of such copyrights, (ii) reissues, renewals, continuations and extensions thereof, (iii) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable with respect thereto, including damages and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout the world and (v) rights to sue for past, present or future infringements thereof.

“Credit Agreement” shall have the meaning assigned to such term in Recital B hereof.

“Deposit Account Control Agreement” shall mean an agreement substantially in the form annexed hereto as Exhibit 5 with such changes as are reasonably acceptable to the applicable Pledgor and the Administrative Agent or such other agreement in form and substance as is reasonably satisfactory to the applicable Pledgor and the Administrative Agent.

“Deposit Accounts” shall mean, collectively, with respect to each Pledgor, (i) all “deposit accounts” as such term is defined in the UCC and in any event shall include the Collateral Account and all accounts and sub-accounts relating to any of the foregoing accounts and (ii) all cash, funds, checks, notes and instruments from time to time on deposit in any of the accounts or sub-accounts described in clause (i) of this definition.

“Distributions” shall mean, collectively, with respect to each Pledgor, all dividends, cash, options, warrants, rights, instruments, distributions, returns of capital or principal, income, interest, profits and other property, interests (debt or equity) or proceeds, including as a result of a split, revision, reclassification or other like change of the Pledged Securities, from time to time received, receivable or otherwise distributed to such Pledgor in respect of or in exchange for any or all of the Pledged Securities or Intercompany Notes.

 

“Excluded Property” shall mean Special Property other than, with respect to clauses (a) through (d) inclusive, of the definition of “Special Property”, the following:

(a)

the right to receive any payment of money (including Accounts, General Intangibles and Payment Intangibles) or any other rights referred to in Sections 9-406(f), 9-407(a) or 9-408(a) of the UCC to the extent that such sections are applicable; and

(b)

any Proceeds, substitutions or replacements of any Special Property (unless such Proceeds, substitutions or replacements would constitute Special Property).

“General Intangibles” shall mean, collectively, with respect to each Pledgor, all “general intangibles,” as such term is defined in the UCC, of such Pledgor and, in any event, shall include (i) all of such Pledgor's rights, title and interest in, to and under all insurance policies and Contracts, (ii) all know-how and warranties relating to any of the Pledged Collateral or the Mortgaged Property, (iii) any and all other rights, claims, choses-in-action and causes of action of such Pledgor against any other person and the benefits of any and all collateral or other security given by any other person in connection therewith, (iv) all guarantees, endorsements and indemnifications on, or of, any of the Pledged Collateral or any of the Mortgaged Property, (v) all lists, books, records, correspondence, ledgers, print-outs, files (whether in printed form or stored electronically), tapes and other papers or materials containing information relating to any of the Pledged Collateral or any of the Mortgaged Property, including all customer or tenant lists, identification of suppliers, data, plans, blueprints, specifications, designs, drawings, appraisals, recorded knowledge, surveys, studies, engineering reports, test reports, manuals, standards, processing standards, performance standards, catalogs, research data, computer and automatic machinery software and programs and the like, field repair data, accounting information pertaining to such Pledgor's operations or any of the Pledged Collateral or any of the Mortgaged Property and all media in which or on which any of the information or knowledge or data or records may be recorded or stored and all computer programs used for the compilation or printout of such information, knowledge, records or data, (vi) all licenses, consents, permits, variances, certifications, authorizations and approvals, however characterized, of any Governmental Authority (or any person acting on behalf of a Governmental Authority) now or hereafter acquired or held by such Pledgor pertaining to operations now or hereafter conducted by such Pledgor or any of the Pledged Collateral or any of the Mortgaged Property including building permits, certificates of occupancy, environmental certificates, industrial permits or licenses and certificates of operation and (vii) all rights to reserves, deferred payments, deposits, refunds, indemnification of claims to the extent the foregoing relate to any Pledged Collateral or Mortgaged Property and claims for tax or other refunds against any Governmental Authority relating to any Pledged Collateral or any of the Mortgaged Property.

“Goodwill” shall mean, collectively, with respect to each Pledgor, the goodwill connected with such Pledgor's business including (i) all goodwill connected with the use of and symbolized by any of the Intellectual Property Collateral in which such Pledgor has any interest, (ii) all know-how, trade secrets, customer and supplier lists, proprietary information, inventions, methods, procedures, formulae, descriptions, compositions, technical data, drawings, specifications, name plates, catalogs, confidential information and the right to limit the use or disclosure thereof by any person, pricing and cost information, business and marketing plans and proposals, consulting agreements, engineering contracts and such other assets which relate to such goodwill and (iii) all goodwill associated with the product lines of such Pledgor's business.

 

“Hedging Agreement” shall have the meaning assigned to such term in Recital G hereof.

“Initial Pledged Interests” shall mean, with respect to each Pledgor, all membership, partnership or other equity interests (other than in a corporation), as applicable, of each issuer described in Schedule 12 annexed to the Perfection Certificate, together with all rights, privileges, authority and powers of such Pledgor in and to each such issuer or under the Operative Agreement of each such issuer, and the certificates, instruments and agreements representing such membership, partnership or other interests and any and all interest of such Pledgor in the entries on the books of any financial intermediary pertaining to such membership, partnership or other interests.

“Initial Pledged Shares” shall mean, collectively, with respect to each Pledgor, the issued and outstanding shares of capital stock of each issuer described in Schedule 12 annexed to the Perfection Certificate, together with all rights, privileges, authority and powers of such Pledgor relating to such interests in each such issuer or under the Operative Agreement of each such issuer, and the certificates, instruments and agreements representing such shares of capital stock and any and all interest of such Pledgor in the entries on the books of any financial intermediary pertaining to the Initial Pledged Shares.

“Instruments” shall mean, collectively, with respect to each Pledgor, all “instruments,” as such term is defined in Article 9, rather than Article 3, of the UCC, and shall include all promissory notes, drafts, bills of exchange or acceptances.

“Intellectual Property Collateral” shall mean, collectively, the Patents, Trademarks, Copyrights, Licenses, related General Intangibles and Goodwill.

“Intercompany Notes” shall mean, with respect to each Pledgor, all intercompany notes described in Schedule 13 annexed to the Perfection Certificate and intercompany notes hereafter acquired by such Pledgor and all certificates, instruments or agreements evidencing such intercompany notes, and all assignments, amendments, restatements, supplements, extensions, renewals, replacements or modifications thereof to the extent permitted pursuant to the terms hereof.

“Investment Property” shall mean a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract or commodity account, excluding, however, the Securities Collateral.
 

“Joinder Agreement” shall mean an agreement substantially in the form annexed hereto as Exhibit 3.

“Licenses” shall mean, collectively, with respect to each Pledgor, all license and distribution agreements with, and covenants not to sue, any other party with respect to any Patent, Trademark or Copyright or any other patent, trademark or copyright, whether such Pledgor is a licensor or licensee, distributor or distributee under any such license or distribution agreement, including the license and distribution agreements listed in Schedules 15(a) and 15(b) annexed to the Perfection Certificate, together with any and all (i) renewals, extensions, supplements and continuations thereof, (ii) income, fees, royalties, damages, claims and payments now and hereafter due and/or payable thereunder and with respect thereto including damages and payments for past, present or future infringements or violations thereof, (iii) rights to sue for past, present and future infringements or violations thereof and (iv) other rights to use, exploit or practice any or all of the Patents, Trademarks or Copyrights or any other patent, trademark or copyright.

 

“Mortgaged Property” shall mean all “Mortgaged Properties” (as defined in each of the Mortgages) located in the United States.

“Operative Agreement” shall mean (i) in the case of any limited liability company or partnership or other non-corporate entity, any membership or partnership agreement or other organizational agreement or document thereof and (ii) in the case of any corporation, any charter or certificate of incorporation and by-laws thereof.

“Original Credit Agreement” shall have the meaning assigned to such term in Recital A hereof.

“Original Guarantors” shall have the meaning assigned to such term in the Preamble hereof.

“Original Borrowers” shall have the meaning assigned to such term in the Preamble hereof.

“Original U.S. Revolving Borrower” shall have the meaning assigned to such term in the Preamble hereof.

“Original U.S. Term Borrower” shall have the meaning assigned to such term in the Preamble hereof.

“Patent Security Agreement” shall mean an agreement substantially in the form annexed hereto as Exhibit 7.

“Patents” shall mean, collectively, with respect to each Pledgor, all patents issued or assigned to and all patent applications and registrations made by such Pledgor (whether established or registered or recorded in the United States or any political subdivision thereof), including those patents, patent applications and registrations listed in Schedule 15(a) annexed to the Perfection Certificate, together with any and all (i) rights and privileges arising under applicable law with respect to such Pledgor's use of any patents, (ii) inventions and improvements described and claimed therein, (iii) reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof, (iv) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable thereunder and with respect thereto including damages and payments for past, present or future infringements thereof, (v) rights corresponding thereto throughout the world and (vi) rights to sue for past, present or future infringements thereof.

 

“Perfection Certificate” shall mean that certain perfection certificate dated December 18, 2003, executed and delivered by each Original U.S. Borrower and each Original Guarantor in favor of the Administrative Agent for the benefit of the Secured Parties, and each other Perfection Certificate (which shall be in form and substance reasonably acceptable to the Administrative Agent) executed and delivered by the applicable Additional Guarantor in favor of the Administrative Agent for the benefit of the Secured Parties contemporaneously with the execution and delivery of each Joinder Agreement executed in accordance with Section 3.5 hereof, in each case as the same may be amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the Credit Agreement, including as supplemented in connection with the amendment and restatement of the Original Credit Agreement on February 9, 2005.

“Pledge Amendment” shall have the meaning assigned to such term in Section 5.1 hereof.

“Pledged Collateral” shall have the meaning assigned to such term in Section 2.1 hereof.

“Pledged Interests” shall mean, collectively, the Initial Pledged Interests and the Additional Pledged Interests (in each case, other than membership interests of BRP Nova Scotia ULC); provided, however, that Pledged Interests shall not include any outstanding interest possessing more than 65% of the voting power or control of all classes of interests entitled to vote of any non-U.S. Subsidiary, and in any event, shall not include the interests of any Subsidiary otherwise required to be pledged pursuant to this Agreement to the extent that such pledge would constitute an investment of earnings in United States property under Section 956 (or a successor provision) of the Code, which investment would trigger an increase in the gross income of a United States shareholder of such Subsidiary pursuant to Section 951 (or a successor provision) of the Code.

“Pledged Securities” shall mean, collectively, the Pledged Interests, the Pledged Shares and the Successor Interests.

“Pledged Shares” shall mean, collectively, the Initial Pledged Shares and the Additional Pledged Shares (in each case, other than membership interests of BRP Nova Scotia ULC); provided, however, that Pledged Interests shall not include more than 65% of the issued and outstanding voting Equity Interests of any non-U.S. Subsidiary, and in any event, shall not include the Equity Interests of any Subsidiary otherwise required to be pledged pursuant to this Agreement to the extent that such pledge would constitute an investment of earnings in United States property under Section 956 (or a successor provision) of the Code, which investment would trigger an increase in the gross income of a United States shareholder of such Subsidiary pursuant to Section 951 (or a successor provision) of the Code.

“Pledgor” shall have the meaning assigned to such term in the Preamble hereof.

“Secured Parties” shall mean, collectively, the Administrative Agent, each other Agent, the Lenders and each party to a Hedging Agreement relating to the Loans if at the date of entering into such Hedging Agreement such person was a Lender or an Affiliate of a Lender and such person executes and delivers to the Administrative Agent a letter agreement in form and substance acceptable to the Administrative Agent pursuant to which such person (i) appoints the Administrative Agent as its agent under the applicable Credit Documents and (ii) agrees to be bound by the provisions of Section 8.2 of the Credit Agreement.

 

“Securities Account Control Agreement” shall mean an agreement substantially in the form annexed hereto as Exhibit 4 with such changes as are reasonably acceptable to the applicable Pledgor and the Administrative Agent or such other agreement in form and substance as is reasonably satisfactory to the applicable Pledgor and the Administrative Agent.

“Securities Collateral” shall mean, collectively, the Pledged Securities, the Intercompany Notes and the Distributions.

“Special Property” shall mean:

(a)

any contract, instrument, permit, lease, license or other document as to which and for so long as the creation of a security interest would constitute a violation of a valid and enforceable restriction in favor of a third party on such creation unless and until any required consents were obtained;

(b)

any contract, instrument, permit, lease, license or other documents as to which and for so long as the creation of a security interest would give any other party to such contract, instrument, permit, lease, license or other document the right to terminate its obligations thereunder;

(c)

any contract, instrument, permit, lease, license or other document to the extent that and for so long as any Requirement of Law applicable thereto prohibits the creation of a security interest therein;

(d)

Equipment owned by any Pledgor on the date hereof or hereafter acquired that is subject to a Lien securing obligations under or in respect of any Capital Lease, Synthetic Lease or Purchase Money Obligations, permitted to be incurred under the Credit Agreement if, and for so long as, the contract or other agreement in which such Lien is granted (or the documentation providing for such obligations under or in respect of any Capital Lease, Synthetic Lease or Purchase Money Obligations) would not permit such Equipment to be subject to the security interests and Liens created under this Agreement; and

(e)

Accounts receivable or chattel paper and related assets in connection with any Permitted Receivables Facility and any assets directly related thereto, including all collateral securing such accounts receivable, chattel paper and other assets (including contract rights and all guarantees or other obligations in respect of such accounts receivable or chattel paper, proceeds of such accounts receivable or chattel paper and other assets) that are sold or transferred to, or with respect to which a security interest is granted to, any Person (other than a Pledgor) in connection with a Permitted Receivables Facility (but in any event excluding proceeds paid or payable to, or received or receivable by, a Pledgor in consideration of such sale or transfer).

 

“Successor Interests” shall mean, collectively, with respect to each Pledgor, all Equity Interests of the successor corporation or interests or certificates of the successor limited liability company, partnership or other entity owned by such Pledgor (unless such successor is such Pledgor itself) formed by or resulting from any consolidation or merger in which any person listed in Schedule 1(a) annexed to the Perfection Certificate is not the surviving entity; provided, however, that Successor Interests shall not include more than 65% of the Equity Interests of any non-U.S. Subsidiary and, in any event, will not include Equity Interests of any Subsidiary otherwise required to be pledged pursuant to this Agreement to the extent that such pledge would constitute an investment of earnings in United States property under Section 956 (or a successor provision) of the Code, which investment would trigger an increase in the gross income of a United States shareholder of such Pledgor pursuant to Section 951 (or a successor provision) of the Code.

“Trademark Security Agreement” shall mean an agreement substantially in the form annexed hereto as Exhibit 8.

“Trademarks” shall mean, collectively, with respect to each Pledgor, all trademarks (including service marks), slogans, logos, certification marks, trade dress, uniform resource locations (URLs), domain names, corporate names and trade names, whether registered or unregistered, owned by or assigned to such Pledgor and all registrations and applications for the foregoing (whether statutory or common law and whether established or registered in the United States or any other country or any political subdivision thereof), including the registrations and applications listed in Schedule 15(a) annexed to the Perfection Certificate, together with any and all (i) rights and privileges arising under applicable law with respect to such Pledgor's use of any trademarks, (ii) extensions and renewals thereof, (iii) income, fees, royalties, damages and payments now and hereafter due and/or payable thereunder and with respect thereto, including damages, claims and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout the world and (v) rights to sue for past, present and future infringements thereof.

“UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that if by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the Administrative Agent's and the Secured Parties' security interest in any item or portion of the Pledged Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority and for purposes of definitions relating to such provisions.

“U.S. Guarantors” shall have the meaning assigned to such term in the Preamble hereof.

“U.S. Revolving Borrower” shall have the meaning assigned to such term in the Preamble hereof.

SECTION 1.2.

Interpretation

.  The rules of interpretation specified in the Credit Agreement shall be applicable to this Agreement.

 

SECTION 1.3.

Perfection Certificate.

  The Administrative Agent and each Secured Party agree that the Perfection Certificate and all descriptions of Pledged Collateral, schedules, amendments and supplements thereto are and shall at all times remain a part of this Agreement.

ARTICLE II

GRANT OF SECURITY AND SECURED OBLIGATIONS

SECTION 2.1.

Pledge

.  As collateral security for the payment and performance in full of all the Obligations, each Pledgor hereby pledges and grants to the Administrative Agent for the benefit of the Secured Parties, a lien on and security interest in and to all of the right, title and interest of such Pledgor in, to and under the following property, wherever located, whether now existing or hereafter arising or acquired from time to time (collectively, the “Pledged Collateral”):  

(i)

all Accounts;

(ii)

all Equipment, Goods, Inventory and Fixtures;

(iii)

all Documents, Instruments and Chattel Paper;

(iv)

all Letters of Credit and Letter-of-Credit Rights;

(v)

all Securities Collateral;

(vi)

the Collateral Account;

(vii)

all Investment Property;

(viii)

all Intellectual Property Collateral;

(ix)

all Commercial Tort Claims;

(x)

all General Intangibles;

(xi)

all Deposit Accounts;

(xii)

all Supporting Obligations;

(xiii)

all books and records relating to the Pledged  Collateral; and

(xiv)

to the extent not covered by clauses (i) through (xii) of this sentence, all other personal property of such Pledgor, whether tangible or intangible and all Proceeds and products of each of the foregoing and all accessions to, substitutions and replacements for, and rents, profits and products of, each of the foregoing, any and all proceeds of any insurance, indemnity, warranty or guaranty payable to such Pledgor from time to time with respect to any of the foregoing.

 

Notwithstanding anything to the contrary contained in clauses (i) through (xiii) above, the security interest created by this Agreement shall not extend to, and the term “Pledged Collateral” shall not include, (a) any Excluded Property and (b) any of a Pledgor's real property leaseholds, and the Pledgors shall from time to time at the reasonable request of the Administrative Agent identify in writing and in reasonable detail the Special Property and shall provide to the Administrative Agent such other information regarding the Special Property as the Administrative Agent may reasonably request.

SECTION 2.2.

Obligations

.  This Agreement secures, and the Pledged Collateral is collateral security for, the payment and performance in full when due of the Obligations.

SECTION 2.3.

Security Interest

(a)    Each Pledgor hereby irrevocably authorizes the Administrative Agent at any time and from time to time to file in any relevant jurisdiction any initial financing statements (including fixture filings) and amendments thereto that contain the information required by Article 9 of the Uniform Commercial Code of each applicable jurisdiction for the filing of any financing statement or amendment relating to the Pledged Collateral, including (i) whether such Pledgor is an organization, the type of organization and any organizational identification number issued to such Pledgor, (ii) any financing or continuation statements or other documents without the signature of such Pledgor where permitted by law, including the filing of a financing statement describing the Pledged Collateral as “all assets in which the Pledgor now owns or hereafter acquires rights” but excluding scheduled assets relating to clause (e) of the definition of “Special Property” and (iii) in the case of a financing statement filed as a fixture filing, a sufficient description of the real property to which such Pledged Collateral relates.  Each Pledgor agrees to provide all information described in the immediately preceding sentence to the Administrative Agent promptly upon request.

(b)

Each Pledgor hereby ratifies its authorization for the Administrative Agent to file in any relevant jurisdiction any initial financing statements or amendments thereto relating to the Pledged Collateral if filed prior to the date hereof or prior to the date of such Pledgor's joinder to this Agreement pursuant to Section 3.5.

(c)

Each Pledgor hereby further authorizes the Administrative Agent to file filings with the United States Patent and Trademark Office or United States Copyright Office (or any successor office or any similar office in any other country), including without limitation, the Copyright Security Agreement, the Patent Security Agreement and the Trademark Security Agreement, or other documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by such Pledgor hereunder, without the signature of such Pledgor, and naming such Pledgor, as debtor, and the Administrative Agent, as secured party.

ARTICLE III

PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES;

USE OF PLEDGED COLLATERAL

SECTION 3.1.

Delivery of Certificated Securities Collateral

.  Each Pledgor represents and warrants that all certificates, agreements or instruments representing or evidencing the Securities Collateral in existence on the date hereof have been delivered to the Administrative Agent in suitable form for transfer by delivery or accompanied by duly executed instruments of transfer or assignment in blank and that the Administrative Agent has a perfected first priority security interest therein.  Each Pledgor hereby agrees that all certificates, agreements or instruments representing or evidencing Securities Collateral acquired by such Pledgor after the date hereof, shall promptly upon receipt thereof by such Pledgor be delivered to and held by or on behalf of the Administrative Agent pursuant hereto.  All certificated Securities Collateral shall be in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Administrative Agent.  The Administrative Agent shall have the right, at any time upon the occurrence and during the continuance of any Event of Default, to endorse, assign or otherwise transfer to or to register in the name of the Administrative Agent or any of its nominees or endorse for negotiation any or all of the Securities Collateral, without any indication that such Securities Collateral is subject to the security interest hereunder.  In addition, upon the occurrence and during the continuance of an Event of Default, the Administrative Agent shall have the right at any time to exchange certificates representing or evidencing Securities Collateral for certificates of smaller or larger denominations.

SECTION 3.2.

Perfection of Uncertificated Securities Collateral

.  Each Pledgor represents and warrants that the Administrative Agent has a perfected first priority security interest in all uncertificated Pledged Securities pledged by it hereunder that is in existence on the date hereof.  Each Pledgor hereby agrees that if any of the Pledged Securities are at any time not evidenced by certificates of ownership, then each applicable Pledgor shall, to the extent permitted by applicable law, cause such pledge to be recorded on the equityholder register or the books of the issuer, cause the issuer to execute and deliver to the Administrative Agent an acknowledgment of the pledge of such Pledged Securities substantially in the form of Exhibit 1 annexed hereto, execute any customary pledge forms or other documents necessary or appropriate to complete the pledge and give the Administrative Agent the right to transfer such Pledged Securities upon the occurrence and during the continuance of an Event of Default, under the terms hereof and, upon request, provide to the Administrative Agent an opinion of counsel, in form and substance reasonably satisfactory to the Administrative Agent, confirming such pledge and perfection thereof.

SECTION 3.3.

Financing Statements and Other Filings; Maintenance of Perfected Security Interest

.  Each Pledgor represents and warrants that the only filings, registrations and recordings necessary to create, preserve, protect, publish notice of and perfect the security interest granted by each Pledgor to the Administrative Agent (for the benefit of the Secured Parties) pursuant to this Agreement in respect of the Pledged Collateral are listed in Schedule 7 annexed to the Perfection Certificate.  Each Pledgor represents and warrants that all such filings, registrations and recordings have been delivered to the Administrative Agent in completed and, to the extent necessary, duly executed form for filing in each governmental, municipal or other office specified in Schedule 7 annexed to the Perfection Certificate.  Each Pledgor agrees that at the sole cost and expense of the Pledgors, (i) such Pledgor will maintain the security interest created by this Agreement in the Pledged Collateral as a perfected first priority security interest and shall (subject to the final sentence of this Section 3.3) defend such security interest against the claims and demands of all persons, (ii) such Pledgor shall furnish to the Administrative Agent from time to time statements and schedules further identifying and describing the Pledged Collateral and such other reports in connection with the Pledged Collateral as the Administrative Agent may reasonably request, all in reasonable detail, and (iii) at any time and from time to time, upon the written request of the Administrative Agent, such Pledgor shall promptly and duly execute and deliver, and file and have recorded, such further instruments and documents and take such further action as the Administrative Agent may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and the rights and powers herein granted, including the filing of any financing statements, continuation statements and other documents (including this Agreement) under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with respect to the security interest created hereby and the execution and delivery of Control Agreements, all in form reasonably satisfactory to the Administrative Agent and in such offices (including the United States Patent and Trademark Office) wherever required by law to perfect, continue and maintain a valid, enforceable, first priority security interest in the Pledged Collateral as provided herein and to preserve the other rights and interests granted to the Administrative Agent hereunder, as against third parties, with respect to the Pledged Collateral.  Nothing in this Agreement prevents any Pledgor from discontinuing the operation or maintenance of any of its assets or properties if such Pledgor determines in good faith that such discontinuance is immaterial in the conduct of its business to the extent permitted by the Credit Agreement.

 

SECTION 3.4.

Other Actions

.  In order to further insure the attachment, perfection and priority of, and the ability of the Administrative Agent to enforce, the Administrative Agent's security interest in the Pledged Collateral, each Pledgor represents (as to itself) as follows and agrees, in each case at such Pledgor's own expense, to take the following actions with respect to the following Pledged Collateral:

(a)

Instruments and Tangible Chattel Paper.  As of the date hereof (i) no amount in the aggregate in excess of $1,000,000 payable under or in connection with any of the Pledged Collateral is evidenced by any Instrument or Tangible Chattel Paper other than such Instruments and Tangible Chattel Paper listed in Schedule 13 annexed to the Perfection Certificate and (ii) each Instrument and each item of Tangible Chattel Paper listed in Schedule 13 annexed to the Perfection Certificate has been properly endorsed, assigned and delivered to the Administrative Agent, accompanied by instruments of transfer or assignment duly executed in blank.  If any amount in the aggregate in excess of $1,000,000 payable under or in connection with any of the Pledged Collateral shall be evidenced by any Instrument or Tangible Chattel Paper, the Pledgor acquiring such Instrument or Tangible Chattel Paper shall forthwith endorse, assign and deliver the same to the Administrative Agent, accompanied by such instruments of transfer or assignment duly executed in blank as the Administrative Agent may from time to time specify.

 

(b)

Deposit Accounts.  (i) Each Pledgor has neither opened nor maintains any Deposit Accounts other than the accounts listed in Schedule 17 annexed to the Perfection Certificate, (ii) the Administrative Agent has a perfected first priority security interest in each Deposit Account listed in Schedule 17 annexed to the Perfection Certificate by Control, and (iii) except as indicated on Schedule 17 to the Perfection Certificate, each bank or other financial institution with which the Deposit Accounts referred to in Schedule 17 annexed to the Perfection Certificate are maintained has executed and delivered to the Administrative Agent a Deposit Account Control Agreement in respect of the relevant Deposit Accounts.  No Pledgor shall hereafter establish and maintain any Deposit Account unless the applicable Bank and such Pledgor shall have duly executed and delivered to the Administrative Agent a Deposit Account Control Agreement with respect to such Deposit Account.  Each Pledgor agrees that at the time it establishes any additional Deposit Accounts it shall enter into a duly authorized, executed and delivered Deposit Account Control Agreement with respect to such Deposit Account.  The Administrative Agent agrees with each Pledgor that the Administrative Agent shall not give any Notice of Sole Control (as defined in any Deposit Account Control Agreement) or any instructions directing the disposition of funds from time to time credited to any Deposit Account or withhold any withdrawal rights from such Pledgor with respect to funds from time to time credited to any Deposit Account unless an Event of Default has occurred and is continuing or after giving effect to any withdrawal would occur.  The provisions of this Section 3.4(b) shall not apply to (a) any Deposit Accounts for which the Administrative Agent is the Bank, (b) any Deposit Account for which a Pledgor, the depositary bank and the Administrative Agent have entered into a cash collateral agreement specially negotiated among such Pledgor, the depository bank and the Administrative Agent for the specific purpose set forth therein, (c) any Deposit Account opened or maintained by a Pledgor with a monthly average daily balance over the immediately preceding 12-month period of less than $5,000,000 in the aggregate with any financial institution and (d) Deposit Accounts primarily for payroll purposes or holding restricted cash in connection with self-insurance programs.  No Pledgor shall grant Control of any Deposit Account to any person other than the Administrative Agent.

(c)

Investment Property.    (i) Each Pledgor (1) has no Securities Accounts or Commodity Accounts other than those listed in Schedule 17 annexed to the Perfection Certificate and the Administrative Agent has a perfected first priority security interest in such Securities Accounts and Commodity Accounts by Control, (2) does not hold, own or have any interest in any certificated securities or uncertificated securities other than those constituting Pledged Securities and those maintained in Securities Accounts or Commodity Accounts listed in Schedule 17 annexed to the Perfection Certificate and (3) as of the date hereof, has entered into a duly authorized, executed and delivered Securities Account Control Agreement or a Commodity Account Control Agreement with respect to each Securities Account or Commodity Account listed in Schedule 17 annexed to the Perfection Certificate, as applicable.

                               
(ii) 
If any Pledgor shall at any time
hold or acquire any certificated securities constituting Investment Property,
such Pledgor shall promptly (a) endorse, assign and deliver the same to the
Administrative Agent, accompanied by such instruments of transfer 

or assignment duly executed in
blank, all in form and substance reasonably satisfactory to the Administrative
Agent or (b) deliver such securities into a Securities Account with respect to
which a Control Agreement is in effect in favor of the Administrative Agent. If
any securities now or hereafter acquired by any Pledgor constituting Investment
Property are uncertificated and are issued to such Pledgor or its nominee
directly by the issuer thereof, such Pledgor shall promptly notify the
Administrative Agent thereof and pursuant to an agreement in form and substance
reasonably satisfactory to the Administrative Agent, either (a) use reasonable
efforts to cause the issuer to agree to comply with instructions from the
Administrative Agent as to such securities, without further consent of any
Pledgor or such nominee, (b) cause a Security Entitlement with respect to such
un-certificated security to be held in a Securities Account with respect to
which the Administrative Agent has Control or (c) arrange for the Administrative
Agent to become the registered owner of the securities. No Pledgor shall
hereafter establish and maintain any Securities Account or Commodity Account
with any Securities Intermediary or Commodity Intermediary unless the applicable
Securities Intermediary or Commodity Intermediary, as the case may be, and such
Pledgor shall have duly executed and delivered a Control Agreement with respect
to such Securities Account or Commodity Account, as the case may be. Each
Pledgor shall accept any cash and Investment Property in trust for the benefit
of the Administrative Agent and within one (1) Business Day of actual receipt
thereof, deposit any cash or Investment Property and any new securities,
instruments, documents or other property by reason of ownership of the
Investment Property received by it into a Controlled Account. The Administrative
Agent agrees with each Pledgor that the Administrative Agent shall not give any
Entitlement Orders or instructions or directions to any issuer of uncertificated
securities, Securities Intermediary or Commodity Intermediary, and shall not
withhold its consent to the exercise of any withdrawal or dealing rights by such
Pledgor, unless an Event of Default has occurred and is continuing, or, after
giving effect to any such investment and withdrawal rights would occur. The
provisions of this Section 3.4(c) shall not apply to any Financial Assets
credited to a Securities Account for which the Administrative Agent is the
Securities Intermediary. No Pledgor shall grant control over any Investment
Property to any person other than the Administrative Agent. 

                               
(iii) 
As between the Administrative Agent
and the Pledgors, the Pledgors shall bear the investment risk with respect to
the Investment Property and Pledged Securities, and the risk of loss of, damage
to, or the destruction of the Investment Property and Pledged Securities,
whether in the possession of, or maintained as a security entitlement or deposit
by, or subject to the control of, the Administrative Agent, a Securities
Intermediary, Commodity Intermediary, any Pledgor or any other person; provided,
however, that nothing contained in this Section 3.4(c) shall release or relieve
the Administrative Agent, any Securities Intermediary or Commodity Intermediary,
if any, of its duties and obligations to the Pledgors or any other person under
any Control Agreement or under applicable law. Each Pledgor shall promptly pay
all Claims and fees of whatever kind or nature with respect to the Investment
Property and Pledged Securities pledged by it under this Agreement. In the event
any Pledgor shall fail to make such payment contemplated in the immediately
preceding sentence, the Administrative Agent may do so for the account of such
Pledgor and the Pledgors shall promptly reimburse and indemnify the
Administrative Agent from all reasonable costs and out-of-pocket expenses
incurred by the 
Administrative Agent under this Section 3.4(c) in accordance with Section 11.5
of the Credit Agreement. 

 

(d)

Electronic Chattel Paper and Transferable Records.  As of the date hereof no amount in the aggregate in excess of $1,000,000 payable under or in connection with any of the Pledged Collateral is evidenced by any Electronic Chattel Paper or any “transferable record” (as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction) other than such Electronic Chattel Paper and transferable records listed in Schedule 13 annexed to the Perfection Certificate.  If any amount in the aggregate in excess of $1,000,000 payable under or in connection with any of the Pledged Collateral shall be evidenced by any Electronic Chattel Paper or any transferable record, the Pledgor acquiring such Electronic Chattel Paper or transferable record shall promptly notify the Administrative Agent thereof and shall take such action as the Administrative Agent may reasonably request to vest in the Administrative Agent control under UCC Section 9-105 of such Electronic Chattel Paper or control under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record.  The Administrative Agent agrees with such Pledgor that the Administrative Agent will arrange, pursuant to procedures satisfactory to the Administrative Agent and so long as such procedures will not result in the Administrative Agent's loss of control, for the Pledgor to make alterations to the Electronic Chattel Paper or transferable record permitted under UCC Section 9-105 or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in control to allow without loss of control, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by such Pledgor with respect to such Electronic Chattel Paper or transferable record.

(e)

Letter-of-Credit Rights.  If any Pledgor is at any time a beneficiary under a Letter of Credit now or hereafter issued in favor of such Pledgor, other than a Letter of Credit issued pursuant to the Credit Agreement, in an amount individually in excess of $2,000,000, such Pledgor shall promptly notify the Administrative Agent thereof and such Pledgor shall, at the request of the Administrative Agent, pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent, either (i) arrange for the issuer and any confirmer of such Letter of Credit to consent to an assignment to the Administrative Agent of the proceeds of any drawing under the Letter of Credit or (ii) arrange for the Administrative Agent to become the transferee beneficiary of such Letter of Credit, with the Administrative Agent agreeing, in each case, that the proceeds of any drawing under the Letter of Credit are to be applied as provided in the Credit Agreement.  

(f)

Commercial Tort Claims.  As of the date hereof each Pledgor hereby represents and warrants that it holds no Commercial Tort Claims other than those listed in Schedule 16 annexed to the Perfection Certificate.  If any Pledgor shall at any time hold or acquire a Commercial Tort Claim having a value individually in excess of $2,000,000, such Pledgor shall, as promptly as reasonably practicable but in no event later than the next date on which the Canadian borrower is required to provide information pursuant to Section 6.1 of the Credit Agreement), notify the Administrative Agent in writing signed by such Pledgor of the brief details thereof and grant to the Administrative Agent in such writing a security interest therein and in the Proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to the Administrative Agent.

 

(g)

Landlord Lien Waivers/Bailee Letters.  Each Pledgor shall use its commercially reasonable efforts to obtain as soon as practicable after the date hereof with respect to each location set forth in Schedule 3.4 annexed hereto, where such Pledgor maintains Pledged Collateral, a waiver of bailee's and/or landlord's lien (the “Bailee Letter”), as applicable, and use commercially reasonable efforts to obtain a Bailee Letter and/or landlord lien waiver, as applicable, from all such bailees and landlords, as applicable, who from time to time have possession of Pledged Collateral having an aggregate value in such location in excess of $2,000,000 in the ordinary course of such Pledgor's business upon the request of the Administrative Agent.

SECTION 3.5.

Joinder of Additional Guarantors

.  The Pledgors shall cause each U.S. Subsidiary of the Canadian Borrower and any entity organized under the laws of the United States or any state thereof that becomes a Succeeding Holdco which, from time to time, after the date hereof shall be required to pledge any assets to the Administrative Agent for the benefit of the Secured Parties hereunder pursuant to the provisions of the Credit Agreement, to execute and deliver to the Administrative Agent (i) a Joinder Agreement substantially in the form of Exhibit 3 annexed hereto within thirty (30) Business Days on which it was acquired or created (or ten (10) days in the case of a Succeeding Holdco) and (ii) a Perfection Certificate, in each case, within thirty (30) Business Days of the date on which it was acquired or created (or ten (10) days in the case of a Succeeding Holdco) and, upon such execution and delivery, such Subsidiary shall constitute a “U.S. Guarantor” and a “Pledgor” for all purposes hereunder with the same force and effect as if originally named as a U.S. Guarantor and Pledgor herein.  The execution and delivery of such Joinder Agreement shall not require the consent of any Pledgor hereunder.  The rights and obligations of each Pledgor hereunder shall remain in full force and effect notwithstanding the addition of any new U.S. Guarantor and Pledgor as a party to this Agreement.

SECTION 3.6.

Supplements; Further Assurances

.  Each Pledgor shall take such further actions, and to execute and deliver to the Administrative Agent such additional assignments, agreements, supplements, powers and instruments, as the Administrative Agent may in its reasonable judgment deem necessary or appropriate, wherever required by law, in order to perfect, preserve and protect the security interest in the Pledged Collateral as provided herein and the rights and interests granted to the Administrative Agent hereunder, to carry into effect the purposes hereof or better to assure and confirm unto the Administrative Agent or permit the Administrative Agent to exercise and enforce its rights, powers and remedies hereunder with respect to any Pledged Collateral.  Without limiting the generality of the foregoing, each Pledgor shall make, execute, endorse, acknowledge, file or refile and/or deliver to the Administrative Agent from time to time upon reasonable request lists, descriptions and designations of the Pledged Collateral, copies of warehouse receipts, receipts in the nature of warehouse receipts, bills of lading, documents of title, vouchers, invoices, schedules, confirmatory assignments, supplements, additional security agreements, conveyances, financing statements, transfer endorsements, powers of attorney, certificates, reports and other assurances or instruments.  If an Event of Default has occurred and is continuing, the Administrative Agent may institute and maintain, in its own name or in the name of any Pledgor, such suits and proceedings as the Administrative Agent may be advised by counsel shall be necessary or expedient to prevent any impairment of the security interest in or the perfection thereof in the Pledged Collateral.  All of the foregoing shall be at the sole cost and expense of the Pledgors.  The Pledgors and the Administrative Agent acknowledge that this Agreement is intended to grant to the Administrative Agent for the benefit of the Secured Parties a security interest in and Lien upon the Pledged Collateral and shall not constitute or create a present assignment of any of the Pledged Collateral.

 

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS

Each Pledgor represents, warrants and covenants as follows:

SECTION 4.1.

Title

.  Except for Permitted Liens and the security interest granted to the Administrative Agent for the ratable benefit of the Secured Parties pursuant to this Agreement, each Pledgor owns and, as to Pledged Collateral acquired by it from time to time after the date hereof, will own the rights in each item of Pledged Collateral pledged by it hereunder free and clear of any and all Liens or claims of others.  No person other than the Administrative Agent has control or possession of all or any part of the Pledged Collateral, except as permitted by the Credit Agreement.

SECTION 4.2.

Validity of Security Interest

.  The security interest in and Lien on the Pledged Collateral granted to the Administrative Agent for the benefit of the Secured Parties hereunder constitutes (a) a legal and valid security interest in all the Pledged Collateral securing the payment and performance of the Obligations, and (b) subject to the filings described in Schedule 7 annexed to the Perfection Certificate, a perfected security interest in all the Pledged Collateral in which a security interest may be perfected by such filings.  The security interest and Lien granted to the Administrative Agent for the benefit of the Secured Parties pursuant to this Agreement in and on the Pledged Collateral will at all times constitute a perfected, continuing first priority security interest therein, superior and prior to the rights of all other persons therein, subject to (1) Permitted Liens and (2) the automatic release of such security interest and Lien pursuant to Section 11.4 of this Agreement.

SECTION 4.3.

Defense of Claims/Transferability of Pledged Collateral

.  Each Pledgor shall, at its own cost and expense, (subject to the last sentence of this Section 4.3) defend title to the Pledged Collateral pledged by it hereunder and the security interest therein and Lien thereon granted to the Administrative Agent and the priority thereof against all claims and demands of all persons, at its own cost and expense, at any time claiming any interest therein materially adverse to the Administrative Agent or any other Secured Party.  Nothing in this Agreement prevents any Pledgor from discontinuing the operation or maintenance of any of its assets or properties if such discontinuance is, in the judgment of its Board of Directors, desirable in the conduct of its business to the extent permitted by the Credit Agreement.

 

SECTION 4.4.

Other Financing Statements

.  There is no (nor will there be any) valid or effective financing statement (or similar statement or instrument of registration under the law of any jurisdiction) covering or purporting to cover any interest of any kind in the Pledged Collateral, except for financing statements related to Permitted Liens or financing statements as are to be terminated in connection with the closing of the Credit Agreement (or pursuant to any termination statement or the equivalent thereof delivered to the Administrative Agent on the Closing Date).  So long as any of the Obligations remain unpaid, no Pledgor shall execute, authorize or permit to be filed in any public office any financing statement (or similar statement or instrument of registration under the law of any jurisdiction) or statements relating to any Pledged Collateral, except financing statements filed or to be filed in respect of Permitted Liens or financing statements as are to be terminated in connection with the closing of the Credit Agreement (or pursuant to any termination statement or the equivalent thereof delivered to the Administrative Agent on the Closing Date).  No financing statement or other public notice with respect to all or any part of the Pledged Collateral is on file or of record in any public office, except for financing statements related to Permitted Liens or financing statements as are to be terminated in connection with the closing of the Credit Agreement (or pursuant to any termination statement or the equivalent thereof delivered to the Administrative Agent on the Closing Date).

SECTION 4.5.

Chief Executive Office; Change of Name; Jurisdiction of Organization

(a)    The exact legal name, type of organization, jurisdiction of organization, Federal Taxpayer Identification Number, organizational identification number and chief executive office of such Pledgor is indicated next to its name in Schedules 1(a) and 2(a) annexed to the Perfection Certificate.  Such Pledgor shall not change (i) its corporate name, (ii) the location of its chief executive office or its principal place of business, (iii) its identity or type of organization or corporate structure, (iv) its Federal Taxpayer Identification Number or organizational identification number, if any, or (v) its jurisdiction of organization (in each case, including by merging with or into any other entity, reorganizing, dissolving, liquidating, reincorporating or incorporating in any other jurisdiction) until 

(A) it shall have given the Administrative Agent not less than 15 days' prior written notice of its intention to so do, clearly describing such change and providing such other information in connection therewith as the Administrative Agent may reasonably request, and 

(B) with respect to such change, such Pledgor shall have taken all action reasonably satisfactory to the Administrative Agent to maintain the perfection and priority of the security interest of the Administrative Agent for the benefit of the Secured Parties in the Pledged Collateral intended to be granted hereunder, including using commercially reasonable efforts to obtain waivers of landlord's or warehousemen's liens with respect to such new location, if applicable, who from time to time have possession of Pledged Collateral having an aggregate value in such new location in excess of $2,000,000, 

except that any Pledgor having aggregate consolidated net assets of less than $2,000,000 (either alone or taken together with all other Pledgors relying on this exception) need not notify the Administrative Agent of any such intention or take such actions until the next date the Canadian Borrower is required to deliver information pursuant to Section 6.1 of the Credit Agreement (at which time such Pledgor shall include the notice required by clause (A) above with such information, together with evidence of the taking of the actions required by clause (B) above).  Each Pledgor agrees to promptly provide the Administrative Agent with certified organizational documents reflecting any of the changes described in the preceding sentence.

 

(b)

The Administrative Agent may rely on opinions of counsel as to whether any or all UCC financing statements of the Pledgors need to be amended as a result of any of the changes described in Section 4.5(a).  If any Pledgor fails to provide information to the Administrative Agent about such changes on a timely basis, the Administrative Agent shall not be liable or responsible to any party for any failure to maintain a perfected security interest in such Pledgor's property constituting Pledged Collateral, for which the Administrative Agent needed to have information relating to such changes.  The Administrative Agent shall have no duty to inquire about such changes if any Pledgor does not inform the Administrative Agent of such changes, the parties acknowledging and agreeing that it would not be feasible or practical for the Administrative Agent to search for information on such changes if such information is not provided by any Pledgor.

SECTION 4.6.

Location of Inventory and Equipment.

  All Equipment and Inventory of such Pledgor is located at the chief executive office or such other location listed in Schedules 2(a), 2(b), 2(c), 2(d) or 2(e) annexed to the Perfection Certificate.  Such Pledgor shall not move any Equipment or Inventory to any location other than one within the Continental United States or Canada that is listed in such Schedules of the Perfection Certificate except in the ordinary course of business and consistent with such Pledgor's past practice until (i) it shall have given the Administrative Agent not less than 30 days' prior written notice (in the form of an Officers' Certificate) of its intention so to do, clearly describing such new location within the Continental United States or Canada and providing such other information in connection therewith as the Administrative Agent may request and (ii) with respect to such new location in the Continental United States or Canada, such Pledgor shall have taken all action reasonably satisfactory to the Administrative Agent to maintain the perfection and priority of the security interest of the Administrative Agent for the benefit of the Secured Parties in the Pledged Collateral intended to be granted hereby in excess of $2,000,000 in the aggregate, including using commercially reasonable efforts to obtain waivers of landlord's or warehousemen's and/or bailee's liens with respect to such new location, if applicable.

SECTION 4.7.

Corporate Names; Prior Transactions

.  Such Pledgor has not, during the past five years, been known by or used any other corporate or fictitious name or been a party to any merger or consolidation, or acquired all or substantially all of the assets of any person, or acquired any of its property or assets out of the ordinary course of business, except as set forth in Schedules 1(a), 1(b), 1(c) and 4 annexed to the Perfection Certificate.

SECTION 4.8.

Due Authorization and Issuance

.  All of the Initial Pledged Shares have been, and to the extent any Pledged Shares are hereafter issued, such shares will be, upon such issuance, duly authorized, validly issued and fully paid and non-assessable.  All of the Initial Pledged Interests have been fully paid for, and there is no amount or other obligation owing by any Pledgor to any issuer of the Initial Pledged Interests in exchange for or in connection with the issuance of the Initial Pledged Interests or any Pledgor's status as a partner or a member of any issuer of the Initial Pledged Interests.

 

SECTION 4.9.

No Conflicts, Consents, etc.

  Except as set forth in Schedule 4.9 annexed hereto, no consent of any party (includ­ing equityholders or creditors of such Pledgor) and no consent, authorization, approval, license or other action by, and no notice to or filing with, any Governmental Authority or regulatory body or other person is required (A) for the pledge by such Pledgor of the Pledged Collateral pledged by it as of the date hereof and after giving effect to the transactions contemplated by any Credit Document and the BRP Acquisition Agreement pursuant to this Agreement or for the execution, delivery or performance hereof by such Pledgor, (B) for the exercise by the Administrative Agent of the voting or other rights provided for in this Agreement or (C) for the exercise by the Administrative Agent of the remedies in respect of the Pledged Collateral pledged by such Pledgor as of the Closing Date pursuant to this Agreement and after giving effect to the transactions contemplated by any Credit Document and the BRP Acquisition Agreement except in each case, for those consents, authorizations, approval, licenses, other actions, notices or filings, the failure of which to obtain or complete could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  In the event that the Administrative Agent desires to exercise any remedies, voting or consensual rights or attorney-in-fact powers set forth in this Agreement and determines it necessary to obtain any approvals or consents of any Governmental Authority or any other person therefor, then, upon the reasonable request of the Administrative Agent, such Pledgor agrees to use its commercially reasonable efforts to assist and aid the Administrative Agent to obtain as soon as practicable any necessary approvals or consents for the exercise of any such remedies, rights and powers.

SECTION 4.10.

Pledged Collateral

.  All information set forth herein, including the schedules annexed hereto, and all information contained in any documents, schedules and lists heretofore delivered to any Secured Party in connection with this Agreement, in each case, relating to the Pledged Collateral, is accurate and complete in all material respects.  The Pledged Collateral described on the schedules annexed hereto constitutes all of the property of such type of Pledged Collateral owned or held by the Pledgors.

SECTION 4.11.

Insurance

.  In the event that the proceeds of any insurance claim are paid after the Administrative Agent has exercised its right to foreclose after an Event of Default such proceeds shall be paid to the Administrative Agent to satisfy any deficiency remaining after such foreclosure.  The Administrative Agent shall retain its interest in the insurance policies required to be maintained pursuant to this Agreement during any redemption period.  

SECTION 4.12.

Payment of Taxes; Compliance with Laws; Contesting Liens; Claims

.  Each Pledgor represents and warrants that all Claims imposed upon or assessed against the Pledged Collateral have been paid and discharged except to the extent such Claims (a) constitute a Lien not yet due and payable or (b) are Permitted Liens.  Each Pledgor shall comply with all Requirement of Law applicable to the Pledged Collateral the failure to comply with which would, individually or in the aggregate, have a Material Adverse Effect.  Each Pledgor may at its own expense contest the validity, amount or applicability of any Claims so long as the contest thereof shall be conducted in accordance with, and permitted pursuant to the provisions of, the Credit Agreement.  Notwithstanding the foregoing provisions of this Section 4.12, (i) no contest of any such obligation may be pursued by such Pledgor if such contest would reasonably be expected to expose the Administrative Agent or any other Secured Party to (A) any possible criminal liability or (B) any additional civil liability for failure to comply with such obligations unless such Pledgor shall have furnished a bond or other security therefor satisfactory to the Administrative Agent, or such Secured Party, as the case may be and (ii) if at any time payment or performance of any obligation contested by such Pledgor pursuant to this Section 4.12 shall become necessary to prevent the imposition of remedies because of non-payment, such Pledgor shall pay or perform the same, in sufficient time to prevent the imposition of remedies in respect of such default or prospective default.

ARTICLE V

CERTAIN PROVISIONS CONCERNING SECURITIES COLLATERAL

SECTION 5.1.

Pledge of Additional Securities Collateral

.  Each Pledgor shall, upon obtaining any Pledged Securities or Intercompany Notes of any person, accept the same in trust for the benefit of the Administrative Agent and forthwith deliver to the Administrative Agent a pledge amendment, duly executed by such Pledgor, in substantially the form of Exhibit 2 annexed hereto (each, a “Pledge Amendment”), and the certificates and other documents required under Section 3.1 and Section 3.2 hereof in respect of the additional Pledged Securities or Intercompany Notes which are to be pledged pursuant to this Agreement, and confirming the attachment of the Lien hereby created on and in respect of such additional Pledged Securities or Intercompany Notes.  Each Pledgor hereby authorizes the Administrative Agent to attach each Pledge Amendment to this Agreement and agrees that all Pledged Securities or Intercompany Notes listed on any Pledge Amendment delivered to the Administrative Agent shall for all purposes hereunder be considered Pledged Collateral.

SECTION 5.2.

Voting Rights; Distributions; etc.

(i)

Unless and until an Event of Default has occurred and be continuing:

(A)

Each Pledgor shall be entitled to exercise any and all voting and other consensual rights and powers inuring to an owner of the Securities Collateral or any part thereof for any purpose not inconsistent with the terms or purposes hereof, the Credit Agreement or any other document evidencing the Obligations; provided, however, that no Pledgor shall in any event exercise such rights in any manner which could reasonably be expected to have a Material Adverse Effect.

(B)

Each Pledgor shall be entitled to receive and retain, and to utilize free and clear of the Lien hereof, any and all Distributions, but only if and to the extent made in accordance with the provisions of the Credit Agreement; provided, however, that any and all such Distributions consisting of rights or interests in the form of securities shall be forthwith delivered to the Administrative Agent to hold as Pledged Collateral and shall, if received by any Pledgor, be received in trust for the benefit of the Administrative Agent, be segregated from the other property or funds of such Pledgor and be forthwith delivered to the Administrative Agent as Pledged Collateral in the same form as so received (with any necessary endorsement).

 

(C)

The Administrative Agent shall be deemed without further action or formality to have granted to each Pledgor all necessary consents relating to voting rights and shall, if necessary, upon written request of any Pledgor and at the sole cost and expense of the Pledgors, from time to time execute and deliver (or cause to be executed and delivered) to such Pledgor all such instruments as such Pledgor may reasonably request in order to permit such Pledgor to exercise the voting and other rights which it is entitled to exercise pursuant to Section 5.2(i)(A) hereof and to receive the Distributions which it is authorized to receive and retain pursuant to Section 5.2(i)(B) hereof.

(ii)

Upon the occurrence and during the continuance of any Event of Default:

(A)

All rights of each Pledgor to exercise the voting and other consensual rights it would otherwise be entitled to exercise pursuant to Section 5.2(i)(A) hereof without any action, other than, in the case of any Securities Collateral, or the giving of any notice shall cease, and all such rights shall thereupon become vested in the Administrative Agent, which shall thereupon have the sole right to exercise such voting and other consensual rights.

(B)

All rights of each Pledgor to receive Distributions which it would otherwise be authorized to receive and retain pursuant to Section 5.2(i)(B) hereof shall cease and all such rights shall thereupon become vested in the Administrative Agent, which shall thereupon have the sole right to receive and hold as Pledged Collateral such Distributions.

(iii)

Each Pledgor shall, at its sole cost and expense, from time to time execute and deliver to the Administrative Agent appropriate instruments as the Administrative Agent may request in order to permit the Administrative Agent to exercise the voting and other rights which it may be entitled to exercise pursuant to Section 5.2(i)(A) hereof and to receive all Distributions which it may be entitled to receive under Section 5.2(i)(B) hereof.

(iv)

All Distributions which are received by any Pledgor contrary to the provisions of Section 5.2(i)(B) hereof shall be received in trust for the benefit of the Administrative Agent, shall be segregated from other funds of such Pledgor and shall promptly be paid over to the Administrative Agent as Pledged Collateral in the same form as so received (with any necessary endorsement).

SECTION 5.3.

Operative Agreements

.  Each Pledgor shall deliver to the Administrative Agent a copy of any notice of default given or received by it under any Operative Agreement within fifteen (15) days after such Pledgor gives or receives such notice.  No Pledgor will terminate or agree to terminate any Operative Agreement or make any amendment or modification to any Operative Agreement which could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, including electing to treat any Pledged Interests of such Pledgor as a security under Section 8-103 of the UCC (unless provisions satisfactory to the Administrative Agent have been made to perfect such security interest).

 

SECTION 5.4.

Defaults, etc

.  Such Pledgor is not in default in the payment of any portion of any mandatory capital contribution, if any, required to be made under any agreement to which such Pledgor is a party relating to the Pledged Securities pledged by it, and such Pledgor is not in violation of any other material provisions of any such agreement to which such Pledgor is a party, or otherwise in default or violation thereunder.  No Securities Collateral pledged by such Pledgor is subject to any defense, offset or counterclaim, nor have any of the foregoing been asserted or alleged against such Pledgor by any person with respect thereto, and as of the date hereof, there are no certificates, instruments, documents or other writings (other than the Operative Agreements and certificates, if any, delivered to the Administrative Agent) which evidence any Pledged Securities of such Pledgor.

SECTION 5.5.

Certain Agreements of Pledgors as Issuers and Holders of Equity Interests

.    In the case of each Pledgor which is an issuer of Securities Collateral, such Pledgor agrees to be bound by the terms of this Agreement relating to the Securities Collateral issued by it and will comply with such terms insofar as such terms are applicable to it.

(i)

In the case of each Pledgor which is a partner in a partnership, limited liability company or other entity, such Pledgor hereby consents to the extent required by the applicable Operative Agreement to the pledge by each other Pledgor, pursuant to the terms hereof, of the Pledged Interests in such partnership, limited liability company or other entity and, upon the occurrence and during the continuance of an Event of Default, to the transfer of such Pledged Interests to the Administrative Agent or its nominee and to the substitution of the Administrative Agent or its nominee as a substituted partner or member in such partnership, limited liability company or other entity with all the rights, powers and duties of a general partner or a limited partner or member, as the case may be.

ARTICLE VI

CERTAIN PROVISIONS CONCERNING INTELLECTUAL

PROPERTY COLLATERAL

SECTION 6.1.

Grant of License

.  For the purpose of enabling the Administrative Agent to exercise rights and remedies under Article IX hereof at such time as the Administrative Agent shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Pledgor hereby grants to the Administrative Agent, exercisable upon the occurrence and during the continuation of an Event of Default, to the extent assignable, an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to such Pledgor) to use, assign, license or sublicense any of the Intellectual Property Collateral now owned or hereafter acquired by such Pledgor, wherever the same may be located, including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout hereof.

 

SECTION 6.2.

Protection of Administrative Agent's Security

.  On a continuing basis, each Pledgor shall, at its sole cost and expense, (i) promptly following its becoming aware thereof, notify the Administrative Agent of (A) any materially adverse determination in any proceeding in the United States Patent and Trademark Office or the United States Copyright Office with respect to any Patent, Trademark or Copyright material to the conduct of such Pledgor's business or (B) the institution of any proceeding or any materially adverse determination in any Federal, state or local court or administrative body regarding such Pledgor's claim of ownership in or right to use any of the Intellectual Property Collateral material to the conduct of such Pledgor's business, its right to register such Intellectual Property Collateral or its right to keep and maintain such registration in full force and effect, (ii) use reasonable efforts to maintain and protect the Intellectual Property Collateral material to the conduct of such Pledgor's business, (iii) not permit to lapse or become abandoned any Intellectual Property Collateral material to the conduct of such Pledgor's business, and not settle or compromise any pending or future litigation or administrative proceeding with respect to such Intellectual Property Collateral, in each case except as shall be consistent with commercially reasonable business judgment (provided that such Pledgor shall have exercised reasonable business judgment if, among other things, it deems in good faith that such Intellectual Property Collateral is not material to the conduct of its business), (iv) upon such Pledgor obtaining knowledge thereof, promptly notify the Administrative Agent of any event which may be reasonably expected to materially and adversely affect the value or utility of the Intellectual Property Collateral or any portion thereof material to the conduct of such Pledgor's business, the ability of such Pledgor or the Administrative Agent to dispose of such Intellectual Property Collateral or any portion thereof or the rights and remedies of the Administrative Agent in relation thereto including a levy or threat of levy or any legal process against such Intellectual Property Collateral or any portion thereof, (v) not license the Intellectual Property Collateral other than licenses entered into by such Pledgor in, or incidental to, the ordinary course of business, or amend or permit the amendment of any of the licenses in a manner that materially and adversely affects the right to receive payments thereunder, or in any manner that would materially impair the value of any Intellectual Property Collateral material to the conduct of such Pledgor's business or the Lien on and security interest in any such Intellectual Property Collateral intended to be granted to the Administrative Agent for the benefit of the Secured Parties, without the consent of the Administrative Agent (such consent not to be unreasonably withheld), (vi) until the Administrative Agent exercises its rights to make collection, use commercially reasonable efforts to keep adequate records respecting the Intellectual Property Collateral and (vii) furnish to the Administrative Agent from time to time upon the Administrative Agent's reasonable request therefor detailed statements and amended schedules further identifying and describing the material Intellectual Property Collateral and such other materials evidencing or reports pertaining to such Intellectual Property Collateral as the Administrative Agent may from time to time request.  Nothing in this Agreement prevents any Pledgor from discontinuing the use or maintenance of any of its Intellectual Property Collateral if such Pledgor determines in good faith that such discontinuance is desirable in the conduct of its business to the extent permitted by the Credit Agreement.

SECTION 6.3.

After-Acquired Property

.  If any Pledgor shall, at any time before the Obligations have been paid in full (other than contingent indemnification obligations which, pursuant to the provisions of the Credit Agreement or the Security Documents, survive the termination thereof), (i) obtain any rights to any additional Intellectual Property Collateral or (ii) become entitled to the benefit of any additional Intellectual Property Collateral or any renewal or extension thereof, including any reissue, division, continuation, or continuation-in-part of any Intellectual Property Collateral, or any improvement on any Intellectual Property Collateral, the provisions hereof shall automatically apply thereto and any such item enumerated in clause (i) or (ii) of this Section 6.3 with respect to such Pledgor shall automatically constitute Intellectual Property Collateral if such would have constituted Intellectual Property Collateral at the time of execution hereof and be subject to the Lien and security interest created by this Agreement without further action by any party.  Each Pledgor shall, as promptly as reasonably practicable but in no event later than the next date on which the Canadian Borrower is required to deliver information to the Administrative Agent under Section 6.1 of the Credit Agreement, (i) provide to the Administrative Agent written notice of any of the foregoing and (ii) confirm the attachment of the Lien and security interest created by this Agreement to any rights described in clauses (i) and (ii) of the immediately preceding sentence of this Section 6.3 by execution of an instrument in form reasonably acceptable to the Administrative Agent.

 

SECTION 6.4.

Modifications

.  Each Pledgor authorizes the Administrative Agent to modify this Agreement by amending Schedules 15(a) and 15(b) annexed to the Perfection Certificate solely to include any Intellectual Property Collateral acquired or arising after the date hereof of such Pledgor, including any of the items listed in Section 6.3 hereof.

SECTION 6.5.

Litigation

.  Unless there shall occur and be continuing any Event of Default, each Pledgor shall have the right to commence and prosecute in its own name, as the party in interest, for its own benefit and at the sole cost and expense of the Pledgors, such applications for protection of the Intellectual Property Collateral and suits, proceedings or other actions to prevent the infringement, counterfeiting, unfair competition, dilution, diminution in value or other damage as are necessary to protect the Intellectual Property Collateral.  Upon the occurrence and during the continuance of any Event of Default, the Administrative Agent shall have the right but shall in no way be obligated to file applications for protection of the Intellectual Property Collateral and/or bring suit in the name of any Pledgor, the Administrative Agent or the Secured Parties to enforce the Intellectual Property Collateral material to the conduct of a Pledgor's business and any license thereunder.  In the event of such suit, each Pledgor shall, at the reasonable request of the Administrative Agent, do any and all lawful acts and execute any and all documents requested by the Administrative Agent in aid of such enforcement and the Pledgors shall promptly reimburse and indemnify the Administrative Agent, as the case may be, for all reasonable costs and out-of-pocket expenses incurred by the Administrative Agent in the exercise of its rights under this Section 6.5 in accordance with Section 11.5 of the Credit Agreement.  In the event that the Administrative Agent shall elect not to bring suit to enforce the Intellectual Property Collateral, each Pledgor agrees, at the reasonable request of the Administrative Agent, to take all commercially reasonable actions necessary, whether by suit, proceeding or other action, to prevent the infringement, counterfeiting, unfair competition, dilution, diminution in value of or other damage to any of the Intellectual Property Collateral by others and for that purpose agrees to diligently maintain any suit, proceeding or other action against any person so infringing necessary to prevent such infringement.

 

ARTICLE VII

CERTAIN PROVISIONS CONCERNING ACCOUNTS

SECTION 7.1.

Maintenance of Records

.  Each Pledgor shall keep and maintain at its own cost and expense complete records of each Account, in a manner consistent with standard business practice, including records of all payments received, all credits granted thereon, all merchandise returned and all other documentation relating thereto.  Each Pledgor shall, at such Pledgor's sole cost and expense, upon the Administrative Agent's demand made at any time after the occurrence and during the continuance of any Event of Default, deliver all tangible evidence of Accounts, including all documents evidencing Accounts and any books and records relating thereto to the Administrative Agent or to its representatives (copies of which evidence and books and records may be retained by such Pledgor).  Upon the occurrence and during the continuance of any Event of Default, the Administrative Agent may transfer a full and complete copy of any Pledgor's books, records, credit information, reports, memoranda and all other writings relating to the Accounts to and for the use by any person that has acquired or is contemplating acquisition of an interest in the Accounts or the Administrative Agent's security interest therein without the consent of any Pledgor.

SECTION 7.2.

Legend

.  Each Pledgor shall legend, at the request of the Administrative Agent made at any time after the occurrence of any Event of Default and in form and manner reasonably satisfactory to the Administrative Agent, the Accounts and the other books, records and documents of such Pledgor evidencing or pertaining to the Accounts with an appropriate reference to the fact that the Accounts have been assigned to the Administrative Agent for the benefit of the Secured Parties and that the Administrative Agent has a security interest therein.

SECTION 7.3.

Modification of Terms, etc

.  No Pledgor shall rescind or cancel any indebtedness evidenced by any Account or modify any term thereof or make any adjustment with respect thereto except in the ordinary course of business, or extend or renew any such indebtedness except in the ordinary course of business or compromise or settle any dispute, claim, suit or legal proceeding relating thereto or sell any Account or interest therein except in the ordinary course of business without the prior written consent of the Administrative Agent (not to be unreasonably withheld).  Each Pledgor shall timely fulfill all obligations on its part to be fulfilled under or in connection with the Accounts.

SECTION 7.4.

Collection

.  Each Pledgor shall cause to be collected from the account debtor of each of the Accounts, as and when due in the ordinary course of business (including Accounts that are delinquent, such Accounts to be collected in accordance with generally accepted commercial collection procedures), any and all amounts owing under or on account of such Account (other than the collection of Accounts which the Pledgor determines in good faith for valid business reasons should not be collected), and apply forthwith upon receipt thereof all such amounts as are so collected to the outstanding balance of such Account, except that any Pledgor may, with respect to an Account, allow in the ordinary course of business (i) a refund or credit due as a result of returned or damaged or defective merchandise and (ii) such extensions of time to pay amounts due in respect of Accounts and such other modifications of payment terms or settlements in respect of Accounts as shall be commercially reasonable in the circumstances, all in accordance with such Pledgor's ordinary course of business.  The costs and expenses (including reasonable attorneys' fees) of collection, in any case, whether incurred by any Pledgor, the Administrative Agent or any Secured Party, shall be paid by the Pledgors.

ARTICLE VIII

TRANSFERS

SECTION 8.1.

Transfers of Pledged Collateral

.  No Pledgor shall sell, convey, assign or otherwise dispose of, or grant any option with respect to, any of the Pledged Collateral pledged by it hereunder except as permitted by the Credit Agreement.

ARTICLE IX

REMEDIES

SECTION 9.1.

Remedies

.  Upon the occurrence and during the continuance of any Event of Default, the Administrative Agent may from time to time exercise in respect of the Pledged Collateral, in addition to the other rights and remedies provided for herein or otherwise available to it:

  
                   
    (i)    Personally,
    or by agents or attorneys, immediately take possession of the Pledged
    Collateral or any part thereof, from any Pledgor or any other person who
    then has possession of any part thereof with or without notice or process of
    law, and for that purpose may, to the extent permitted under applicable law,
    enter upon any Pledgor's premises where any of the Pledged Collateral is
    located, remove such Pledged Collateral, remain present at such premises to
    receive copies of all communications and remittances relating to the Pledged
    Collateral and use in connection with such removal and possession any and
    all services, supplies, aids and other facilities of any Pledgor; 
    

                   
    (ii)   Demand,
    sue for, collect or receive any money or property at any time payable or
    receivable in respect of the Pledged Collateral including instructing the
    obli-gor or obligors on any agreement, instrument or other obligation
    constituting part of the Pledged Collateral to make any payment required by
    the terms of such agreement, instrument or other obligation directly to the
    Administrative Agent, and in connection with any of the foregoing,
    compromise, settle, extend the time for payment and make other modifications
    with respect thereto; provided, however, that in the event that any such
    payments are made directly to any Pledgor, prior to receipt by any such
    obligor of such instruction, such Pledgor shall segregate all amounts
    received pursuant thereto in trust for the benefit of the Administrative
    Agent and shall promptly (but in no event later than two (2) Business Days
    after receipt thereof) pay such amounts to the Administrative Agent; 
    

  

  
                   
    (iii) 
      Sell, assign, grant a
    license to use or otherwise liquidate, or direct any Pledgor to sell,
    assign, grant a license to use or otherwise liquidate, any and all
    investments made in whole or in part with the Pledged Collateral or any part
    thereof, and take possession of the proceeds of any such sale, assignment,
    license or liquidation; 

                   
    (iv) 
     Take possession of the
    Pledged Collateral or any part thereof, by directing any Pledgor in writing
    to deliver the same to the Administrative Agent at any place or places so
    designated by the Administrative Agent, in which event such Pledgor shall at
    its own expense: (A) forthwith cause the same to be moved to the place or
    places designated by the Administrative Agent and there delivered to the
    Administrative Agent, (B) store and keep any Pledged Collateral so delivered
    to the Administrative Agent at such place or places pending further action
    by the Administrative Agent and (C) while the Pledged Collateral shall be so
    stored and kept, provide such security and maintenance services as shall be
    necessary to protect the same and to preserve and maintain them in good
    condition. Each Pledgor's obligation to deliver the Pledged Collateral as
    contemplated in this Section 9.1(iv) is of the essence hereof. Upon
    application to a court of equity having jurisdiction, the Administrative
    Agent shall be entitled to seek a decree requiring specific performance by
    any Pledgor of such obligation; 

                   
    (v)   
    Withdraw all moneys,
    instruments, securities and other property in any bank, financial
    securities, deposit or other account of any Pledgor, including, in the
    Collateral Account, constituting Pledged Collateral for application to the
    Obligations as provided in Article X hereof; 

                   
    (vi) 
     Retain and apply the
    Distributions to the Obligations as provided in Article X hereof; 
    

                   
    (vii) 
     Exercise any and all
    rights as beneficial and legal owner of the Pledged Collateral, including
    perfecting assignment of and exercising any and all voting, consen-sual and
    other rights and powers with respect to any Pledged Collateral; and 
    

                   
    (viii) 
     Exercise all the rights
    and remedies of a secured party on default under the UCC, and the
    Administrative Agent may also in its sole discretion, without notice except
    as specified in Section 9.2 hereof, sell, assign or grant a license to use
    the Pledged Collateral or any part thereof in one or more parcels at public
    or private sale, at any exchange, broker's board or at any of the
    Administrative Agent's offices or elsewhere, for cash, on credit or for
    future delivery, and at such price or prices and upon such other terms as
    are commercially reasonable. The Administrative Agent or any other Secured
    Party or any of their respective Affiliates may be the purchaser, licensee,
    assignee or recipient of any or all of the Pledged Collateral at any such
    sale and shall be entitled, for the purpose of bidding and making settlement
    or payment of the purchase price for all or any portion of the Pledged
    Collateral sold, assigned or licensed at such sale, to use and apply any of
    the Obligations owed to such person as a credit on account of the purchase
    price of any Pledged Collateral payable by such person at such sale. Each
    purchaser, assignee, licensee or recipient at any such sale shall acquire
    the property sold, assigned or licensed absolutely free from any claim or
    right on the part of any Pledgor, and each Pledgor hereby waives, to the
    fullest extent permitted by law, all rights of redemption, stay and/or
    appraisal which it now has or may at any time in the future have under any
    rule of law or statute now existing or hereafter enacted. The Administrative
    Agent shall not be obligated to make any sale of Pledged Collateral
    regardless of notice of sale having been given. The Administrative Agent may
    adjourn any public or private sale from time to time by announcement at the
    time and place fixed therefor, and such sale may, without further notice, be
    made at the time and place to which it was so adjourned. Each Pledgor hereby
    waives, to the fullest extent permitted by law, any claims against the
    Administrative Agent arising by reason of the fact that the price at which
    any Pledged Collateral may have been sold, assigned or licensed at such a
    private sale was less than the price which might have been obtained at a
    public sale, even if the Administrative Agent accepts the first offer
    received and does not offer such Pledged Collateral to more than one offeree.
    

  

 

SECTION 9.2.

Notice of Sale

.  Each Pledgor acknowledges and agrees that, upon the occurrence and during the continuance of any Event of Default, to the extent notice of sale or other disposition of Pledged Collateral shall be required by law, ten (10) days' prior notice to such Pledgor of the time and place of any public sale or of the time after which any private sale or other intended disposition is to take place shall be commercially reasonable notification of such matters.

SECTION 9.3.

Waiver of Notice and Claims

.  Each Pledgor hereby waives, upon the occurrence and during the continuance of any Event of Default, to the fullest extent permitted by applicable law, notice or judicial hearing in connection with the Administrative Agent's taking possession or the Administrative Agent's disposition of any of the Pledged Collateral, including any and all prior notice and hearing for any prejudgment remedy or remedies and any such right which such Pledgor would otherwise have under law, and each Pledgor hereby further waives, to the fullest extent permitted by applicable law:  (i) all damages occasioned by such taking of possession except to the extent caused by the gross negligence, bad faith or willful misconduct of the Administrative Agent, (ii) all other requirements as to the time, place and terms of sale or other requirements with respect to the enforcement of the Administrative Agent's rights hereunder and (iii) all rights of redemption, appraisal, valuation, stay, extension or moratorium now or hereafter in force under any applicable law.  The Administrative Agent shall not be liable for any incorrect or improper payment made pursuant to this Article IX in the absence of gross negligence, bad faith or willful misconduct.  Any sale of, or the grant of options to purchase, or any other realization upon, any Pledged Collateral shall operate to divest all right, title, interest, claim and demand, either at law or in equity, of the applicable Pledgor therein and thereto, and shall be a perpetual bar both at law and in equity against such Pledgor and against any and all persons claiming or attempting to claim the Pledged Collateral so sold, optioned or realized upon, or any part thereof, from, through or under such Pledgor.

SECTION 9.4.

Certain Sales of Pledged Collateral

(i)    Each Pledgor recognizes that, by reason of certain prohibitions contained in law, rules, regulations or orders of any Governmental Authority, the Administrative Agent may be compelled, with respect to any sale of all or any part of the Pledged Collateral, to limit purchasers to those who meet the requirements of such Governmental Authority.  Each Pledgor acknowledges that any such sales may be at prices and on terms less favorable to the Administrative Agent than those obtainable through a public sale without such restrictions, and, notwithstanding such circumstances, agrees that any such restricted sale shall be deemed to have been made in a commercially reasonable manner and that, except as may be required by applicable law, the Administrative Agent shall have no obligation to engage in public sales.

 

(ii)

Each Pledgor recognizes that, by reason of certain prohibitions contained in the Securities Act, and applicable state securities laws, the Administrative Agent may be compelled, with respect to any sale of all or any part of the Securities Collateral and Investment Property under this Article IX, to limit purchasers to persons who will agree, among other things, to acquire such Securities Collateral or Investment Property for their own account, for investment and not with a view to the distribution or resale thereof.  Each Pledgor acknowledges that any such private sales may be at prices and on terms less favorable to the Administrative Agent than those obtainable through a public sale without such restrictions (including a public offering made pursuant to a registration statement under the Securities Act), and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner and that the Administrative Agent shall have no obligation to engage in public sales and no obligation to delay the sale of any Securities Collateral or Investment Property for the period of time necessary to permit the issuer thereof to register it for a form of public sale requiring registration under the Securities Act or under applicable state securities laws, even if such issuer would agree to do so.

(iii)

If the Administrative Agent determines to exercise its right to sell any or all of the Securities Collateral or Investment Property, upon written request, the applicable Pledgor shall from time to time furnish to the Administrative Agent all such information as the Administrative Agent may request in order to determine the number of securities included in the Securities Collateral or Investment Property which may be sold by the Administrative Agent as exempt transactions under the Securities Act and the rules of the Securities and Exchange Commission thereunder, as the same are from time to time in effect.

(iv)

Each Pledgor further agrees that a breach of any of the covenants contained in this Section 9.4 could cause irreparable injury to the Administrative Agent and other Secured Parties, that the Administrative Agent and the other Secured Parties have no adequate remedy at law in respect of such breach and, as a consequence, that the Administrative Agent may seek specific enforcement of each and every covenant contained in this Section 9.4.

SECTION 9.5.

No Waiver; Cumulative Remedies

(i)    No failure on the part of the Administrative Agent to
exercise, no course of dealing with respect to, and no delay on the part of the
Administrative Agent in exercising, any right, power or remedy hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right, power or remedy hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or remedy; nor shall the
Administrative Agent be required to look first to, enforce or exhaust any other
security, collateral or guaranties.  The remedies herein provided are cumulative
and are not exclusive of any remedies provided by law.

(ii)

In the event that the Administrative Agent shall have instituted any proceeding to enforce any right, power or remedy under this Agreement by foreclosure, sale, entry or otherwise, and such proceeding shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Administrative Agent, then and in every such case, the Pledgors, the Administrative Agent and each other Secured Party shall be restored to their respective former positions and rights hereunder with respect to the Pledged Collateral (except for determinations made in such proceedings), and all rights, remedies and powers of the Administrative Agent and the other Secured Parties shall continue as if no such proceeding had been instituted (except for determinations made in such proceedings).

 

SECTION 9.6.

Certain Additional Actions Regarding Intellectual Property

.  Upon the occurrence and during the continuance of an Event of Default:

(a)

upon the written demand of the Administrative Agent, each Pledgor shall execute and deliver to the Administrative Agent an assignment or assignments of the registered and owned Patents, Trademarks and/or Copyrights and such other documents by such Pledgor as are necessary to carry out the intent and purposes hereof;

(b)

each Pledgor will, at the request of the Administrative Agent, use its commercially reasonable efforts to obtain all requisite consents or approvals by the licensor of each License owned by a third party to effect the assignment of all such Pledgor's right, title and interest thereunder to the Administrative Agent; and

(c)

within five (5) Business Days of written notice thereafter from Administrative Agent, each Pledgor shall make available to Administrative Agent, to the extent within such Pledgor's power and authority, such personnel in such Pledgor's employ on the date of the Event of Default as Administrative Agent may reasonably designate to permit such Pledgor to continue, directly or indirectly, to produce, advertise and sell the products and services sold by such Pledgor under the registered Patents, Trademarks and/or Copyrights owned by such Pledgor or licensed and validly assigned to the Administrative Agent, and such persons shall be available to perform their prior functions on Administrative Agent's behalf.

ARTICLE X

COLLATERAL ACCOUNT/PROCEEDS OF CASUALTY EVENTS AND COLLATERAL DISPOSITIONS/APPLICATION OF PROCEEDS

SECTION 10.1.

Collateral Account

.  The U.S. Revolving Borrower and the U.S. Term Borrower shall jointly establish, in the name of the U.S. Revolving Borrower and the U.S. Term Borrower, and maintain an interest-bearing cash collateral account (the “Collateral Account”) at the Relevant Payment Branch of the U.S. Revolving Borrower or the U.S. Term Borrower, which shall be in the control of the Administrative Agent for the benefit of the Secured Parties.  Amounts on deposit in the Collateral Account from time to time shall be released or applied by the Administrative Agent as provided in the Credit Agreement or herein, as applicable.

SECTION 10.2.

Proceeds of Casualty Events and Collateral Dispositions

.  The Pledgors shall take all actions required by the Credit Agreement and the provisions of this Agreement with respect to any Net Cash Payments of any Casualty Event or from the sale or disposition of any Pledged Collateral.

 

SECTION 10.3.

Application of Proceeds

.  The proceeds received by the Administrative Agent in respect of any sale of, collection from or other realization upon all or any part of the Collateral pursuant to the exercise by the Administrative Agent of its remedies shall be applied, together with any other sums then held by the Administrative Agent pursuant to this Agreement, in accordance with the Credit Agreement and the provisions of this Agreement.

ARTICLE XI

MISCELLANEOUS

SECTION 11.1.

Concerning Administrative Agent

(i)    The Administrative Agent has been appointed as
administrative agent pursuant to the Credit Agreement.  The actions of the
Administrative Agent hereunder are subject to the provisions of the Credit
Agreement.  The Administrative Agent shall have the right hereunder to make
demands, to give notices, to exercise or refrain from exercising any rights, and
to take or refrain from taking action (including the release or substitution of
the Pledged Collateral), in accordance with this Agreement and the Credit
Agreement.  The Administrative Agent may employ agents and attorneys-in-fact in
connection herewith and shall not be liable for the negligence or misconduct of
any such agents or attorneys-in-fact selected by it in good faith.  The
Administrative Agent may resign and a successor Administrative Agent may be
appointed in the manner provided in the Credit Agreement.  Upon the acceptance
of any appointment as the Administrative Agent by a successor Administrative
Agent, that successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Administrative Agent under this Agreement, and the retiring Administrative Agent
shall thereupon be discharged from its duties and obligations under this
Agreement.  After any retiring Administrative Agent's resignation, the
provisions hereof shall inure to its benefit as to any actions taken or omitted
to be taken by it under this Agreement while it was the Administrative Agent.

(ii)

The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if such Pledged Collateral is accorded treatment substantially equivalent to that which the Administrative Agent, in its individual capacity, accords its own property consisting of similar instruments or interests, it being understood that neither the Administrative Agent nor any of the Secured Parties shall have responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any Securities Collateral, whether or not the Administrative Agent or any other Secured Party has or is deemed to have knowledge of such matters or (ii) taking any necessary steps to preserve rights against any person with respect to any Pledged Collateral.

(iii)

The Administrative Agent shall be entitled to rely upon any written notice, statement, certificate, order or other document or any telephone message believed by it to be genuine and correct and to have been signed, sent or made by the proper person, and, with respect to all matters pertaining to this Agreement and its duties hereunder, upon advice of counsel selected by it.

 

(iv)

If any item of Pledged Collateral also constitutes collateral granted to Administrative Agent under any other deed of trust, mortgage, security agreement, pledge or instrument of any type, in the event of any conflict between the provisions hereof and the provisions of such other deed of trust, mortgage, security agreement, pledge or instrument of any type in respect of such collateral, Administrative Agent, in its sole discretion, shall select which provision or provisions shall control.

(v)

The Administrative Agent may grant extensions of time for the execution of any agreement or other document hereunder or the creation or perfection of security interests with respect to Collateral, if it determines that execution, creation or perfection cannot be accomplished without undue effort or expense by the time or times at which it would otherwise be required by this Agreement.

(vi)

Notwithstanding anything contained in this Agreement or any other Credit Document to the contrary, the Administrative Agent hereby acknowledges and agrees that none of the following actions shall be taken without the prior written consent of the Lenders: (A) exercise any rights with respect to any pledge agreement or any stock pledged thereunder; or (B) purchase or otherwise acquire any direct ownership interest in any real property owned by any Obligor or any subsidiary thereof, whether through purchase upon foreclosure of any lien granted to the Administrative Agent for the benefit of the Secured Parties under this Agreement or any other Security Document or any Mortgage or otherwise.  The foregoing shall in no way limit the ability of the Administrative Agent to perform its duties thereunder.

SECTION 11.2.

Administrative Agent May Perform; Administrative Agent Appointed Attorney-in-Fact

.  If any Pledgor shall fail to perform any covenants contained in this Agreement (including such Pledgor's covenants to (i) pay the premiums in respect of all required insurance policies hereunder, (ii) pay Claims, (iii) make repairs, (iv) discharge Liens or (v) pay or perform any obligations of such Pledgor under any Pledged Collateral) or if any warranty on the part of any Pledgor contained herein shall be breached, the Administrative Agent may (but shall not be obligated to) do the same or cause it to be done or remedy any such breach, and may expend funds for such purpose; provided, however, that Administrative Agent shall in no event be bound to inquire into the validity of any tax, lien, imposition or other obligation which such Pledgor fails to pay or perform as and when required hereby and which such Pledgor does not contest in accordance in accordance with the provision of Section 4.12 hereof.  Any and all amounts so expended by the Administrative Agent shall be paid by the Pledgors in accordance with the provisions of Section 11.5 of the Credit Agreement.  Neither the provisions of this Section 11.2 nor any action taken by Administrative Agent pursuant to the provisions of this Section 11.2 shall prevent any such failure to observe any covenant contained in this Agreement nor any breach of warranty form constituting an Event of Default.  Each Pledgor hereby appoints the Administrative Agent its attorney-in-fact upon the occurrence and during the continuance of an Event of Default, with full authority in the place and stead of such Pledgor and in the name of such Pledgor, or otherwise, from time to time in the Administrative Agent's discretion to take any action and to execute any instrument consistent with the terms of the Credit Agreement, this Agreement and the other Security Documents which the Administrative Agent may deem necessary to accomplish the purposes hereof.  The foregoing grant of authority is a power of attorney coupled with an interest and such appointment shall be irrevocable for the term hereof.  Each Pledgor hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue hereof.

 

SECTION 11.3.

Continuing Security Interest; Assignment

.  This Agreement shall create a continuing security interest in the Pledged Collateral and shall (i) be binding upon the Pledgors, their respective successors and assigns and (ii) inure, together with the rights and remedies of the Administrative Agent hereunder, to the benefit of the Administrative Agent and the other Secured Parties and each of their respective successors, transferees and assigns.  No other persons (including any other creditor of any Pledgor) shall have any interest herein or any right or benefit with respect hereto.  Without limiting the generality of the foregoing clause (ii), any Secured Party may assign or otherwise transfer any indebtedness held by it secured by this Agreement to any other person, and such other person shall thereupon become vested with all the benefits in respect thereof granted to such Secured Party, herein or otherwise, subject however, to the provisions of the Credit Agreement and any Hedging Agreement.  Each Pledgor hereby affirms its prior grant of security interests under this Agreement as of December 18, 2003 (or such later date on which it became party to this Agreement) in favor of the Administrative Agent and the other Secured Parties.  Without limiting the foregoing, it is expressly understood and agreed that all security interests, assignments and liens granted by the Pledgors in favor of the Administrative Agent for the benefit of itself and the other Secured Parties in this Agreement in connection with the Original Credit Agreement are not terminated hereby, but continue and remain in full force and effect, subject to the terms and provisions hereof.

SECTION 11.4.

Termination; Release

(a)    This Agreement and the Liens and security interests
granted hereby shall terminate when all the Obligations (other than wholly
contingent indemnification obligations) then due and owing have been
indefeasibly paid in full and the Lenders have no further commitment to lend
under the Credit Agreement.

(b)

A Pledgor shall automatically be released from its obligations hereunder and the Liens on and security interests granted in the Pledged Collateral of such Pledgor under this Agreement shall be automatically released upon the consummation of any transaction permitted by the Credit Agreement as a result of which such Pledgor ceases to be a Subsidiary of the Canadian Borrower.

(c)

Upon any sale or other transfer by any Pledgor of any Pledged Collateral that is permitted under the Credit Agreement to any person that is not a Pledgor, or upon the effectiveness of any written consent to the release of the Liens on and security interests granted in the Pledged Collateral of such Pledgor under this Agreement in any Pledged Collateral pursuant to Section 11.6 of the Credit Agreement, the Liens and security interests granted in such Pledged Collateral under this Agreement shall be automatically released.

(d)

In connection with any termination or release pursuant to paragraphs (a) through (c) above, the Administrative Agent shall, at the sole cost and expense of the Pledgors, execute and deliver to any Pledgor all documents that such Pledgor shall reasonably request to evidence such termination or release, and assign, transfer and deliver to such Pledgor, against receipt and without recourse to or warranty by the Administrative Agent except as to the fact that the Administrative Agent has not encumbered the released assets, such of the Pledged Collateral to be released (in the case of a release) as may be in possession of the Administrative Agent and as shall not have been sold or otherwise applied pursuant to the terms hereof.

 

SECTION 11.5.

Modification in Writing

.  No amendment, modification, supplement, termination or waiver of or to any provision hereof, nor consent to any departure by any Pledgor therefrom, shall be effective unless the same shall be made in accordance with the terms of the Credit Agreement.  Any amendment, modification or supplement of or to any provision hereof, any waiver of any provision hereof and any consent to any departure by any Pledgor from the terms of any provision hereof shall be effective only in the specific instance and for the specific purpose for which made or given.  Except where notice is specifically required by this Agreement or any other document evidencing the Obligations, no notice to or demand on any Pledgor in any case shall entitle any Pledgor to any other or further notice or demand in similar or other circumstances.

SECTION 11.6.

Notices

.  Unless otherwise provided herein or in the Credit Agreement, any notice or other communication herein required or permitted to be given shall be given in the manner and become effective as set forth in the Credit Agreement, as to any Pledgor, addressed to it at the address of the U.S. Borrowers set forth in the Credit Agreement and as to the Administrative Agent, addressed to it at the address set forth in the Credit Agreement, or in each case at such other address as shall be designated by such party in a written notice to the other party complying as to delivery with the terms of this Section 11.6.

SECTION 11.7.

GOVERNING LAW

.  THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

SECTION 11.8.

CONSENT TO JURISDICTION AND SERVICE OF PROCESS; WAIVER OF JURY TRIAL

.  ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PLEDGOR WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, THE COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AND APPELLATE COURTS OF ANY THEREOF, AND BY EXECUTION AND DELIVERY HEREOF, EACH PLEDGOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT.  EACH PLEDGOR AGREES THAT SERVICE OF PROCESS IN ANY PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO THE U.S. BORROWERS AT ITS ADDRESS SET FORTH IN THE CREDIT AGREEMENT OR AT SUCH OTHER ADDRESS OF WHICH THE ADMINISTRATIVE AGENT SHALL HAVE BEEN NOTIFIED PURSUANT THERETO.  IF ANY AGENT APPOINTED BY ANY PLEDGOR REFUSES TO ACCEPT SERVICE, SUCH PLEDGOR HEREBY AGREES THAT SERVICE UPON IT BY MAIL SHALL CONSTITUTE SUFFICIENT NOTICE.  NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT TO BRING PROCEEDINGS AGAINST ANY PLEDGOR IN THE COURTS OF ANY OTHER JURISDICTION.

 

THE PLEDGORS HEREBY IRREVOCABLY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

SECTION 11.9.

Severability of Provisions

.  Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

SECTION 11.10.

Execution in Counterparts

.  This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all such counterparts together shall constitute one and the same agreement.

SECTION 11.11.

Business Days

.  In the event any time period or any date provided in this Agreement ends or falls on a day other than a Business Day, then such time period shall be deemed to end and such date shall be deemed to fall on the next succeeding Business Day, and performance herein may be made on such Business Day, with the same force and effect as if made on such other day.

SECTION 11.12.

Waiver of Stay

.  Each Pledgor agrees that in the event that such Pledgor or any property or assets of such Pledgor shall hereafter become the subject of a voluntary or involuntary proceeding under the Code or such Pledgor shall otherwise be a party to any Federal or state bankruptcy, insolvency, moratorium or similar proceeding to which the provisions relating to the automatic stay under Section 362 of the Code or any similar provision in any such law is applicable, then, in any such case, whether or not the Administrative Agent has commenced foreclosure proceedings under this Agreement, the Administrative Agent shall be entitled to relief to the fullest extent permitted by law from any such automatic stay as it relates to the exercise of any of the rights and remedies (including any foreclosure proceedings) available to the Administrative Agent as provided in this Agreement, in any other Collateral Document or any other document evidencing the Obligations.

SECTION 11.13.

No Credit for Payment of Taxes or Imposition

.  Such Pledgor shall not be entitled to any credit against the principal, premium, if any, or interest payable under the Credit Agreement, and such Pledgor shall not be entitled to any credit against any other sums which may become payable under the terms thereof or hereof, by reason of the payment of any Taxes on the Pledged Collateral or any part thereof.

SECTION 11.14.

No Claims Against Administrative Agent

.  Nothing contained in this Agreement shall constitute any consent or request by the Administrative Agent, express or implied, for the performance of any labor or services or the furnishing of any materials or other property in respect of the Pledged Collateral or any part thereof, nor as giving any Pledgor any right, power or authority to contract for or permit the performance of any labor or services or the furnishing of any materials or other property in such fashion as would permit the making of any claim against the Administrative Agent in respect thereof or any claim that any Lien based on the performance of such labor or services or the furnishing of any such materials or other property is prior to the Lien hereof.

 

SECTION 11.15.

No Release

.  Nothing set forth in this Agreement shall relieve any Pledgor from the performance of any term, covenant, condition or agreement on such Pledgor's part to be performed or observed under or in respect of any of the Pledged Collateral or from any liability to any person under or in respect of any of the Pledged Collateral or shall impose any obligation on the Administrative Agent or any other Secured Party to perform or observe any such term, covenant, condition or agreement on such Pledgor's part to be so performed or observed or shall impose any liability on the Administrative Agent or any other Secured Party for any act or omission on the part of such Pledgor relating thereto or for any breach of any representation or warranty on the part of such Pledgor contained in this Agreement, the Credit Agreement or the other Credit Documents, or under or in respect of the Pledged Collateral or made in connection herewith or therewith.  The obligations of each Pledgor contained in this Section 11.15 shall survive the termination hereof and the discharge of such Pledgor's other obligations under this Agreement, the Credit Agreement and the other Credit Documents.

SECTION 11.16.

Obligations Absolute

 All obligations of each Pledgor hereunder shall be absolute and unconditional irrespective of:

  
                   
    (i) 
    any bankruptcy, insolvency,
    reorganization, arrangement, readjustment, composition, liquidation or the
    like of any Pledgor; 

                   
    (ii) 
    any lack of validity or
    enforceability of the Credit Agreement, any Hedging Agreement or any other
    Credit Document, or any other agreement or instrument relating thereto;
    

                   
    (iii) 
    any change in the time, manner
    or place of payment of, or in any other term of, all or any of the
    Obligations, or any other amendment or waiver of or any consent to any
    departure from the Credit Agreement, any Hedging Agreement or any other
    Credit Document or any other agreement or instrument relating thereto;
    

                   
    (iv) 
    any pledge, exchange, release or
    non-perfection of any other collateral, or any release or amendment or
    waiver of or consent to any departure from any guarantee, for all or any of
    the Obligations; 

                   
    (v) 
    any exercise, non-exercise or
    waiver of any right, remedy, power or privilege under or in respect hereof,
    the Credit Agreement, any Hedging Agreement or any other Credit Document
    except as specifically set forth in a waiver granted pursuant to the
    provisions of Section 11.5 hereof; or 

                   
    (vi) 
    any other circumstances which
    might otherwise constitute a defense available to, or a discharge of, any
    Pledgor. 

  

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

 

 
IN WITNESS WHEREOF, the Pledgors and the Administrative Agent have caused this Agreement to be duly executed and delivered by their duly authorized officers as of the date first above written.

BRP US INC., as U.S. Revolving Borrower

By:

           
______________________

Name:

Title:

BRP HOLDINGS LP, as U.S. Guarantor

By:

           
______________________

Name:

Title:

BRP HOLDINGS (USA) INC., as U.S. Guarantor

By:

           
_____________________

Name:

Title:

BRP LLC, as U.S. Guarantor

By:

           
______________________

Name:

Title:

\

AIRCRAFT ENGINE SERVICES (AES) INC., as U.S. Guarantor

By:

           
______________________

Name:

Title:

BANK OF MONTREAL, as Administrative Agent

By:
           
______________________

Name:

Title:

SCHEDULE 3.4

Locations for Landlord Lien Waivers/Bailee Letters

 

SCHEDULE 4.9

Required Consents

 

EXHIBIT 1

[Form of]

ISSUER'S ACKNOWLEDGMENT

The undersigned hereby (i) acknowledges receipt of a copy of that certain security agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement;” capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement), dated as of December 18, 2003, as amended and restated as of February 9, 2005, made by BRP US Inc., a corporation existing under the laws of Delaware (the “U.S. Revolving Borrower”), the U.S. Guarantors party thereto and BANK OF MONTREAL, as Administrative Agent (in such capacity and together with any successors in such capacity, the “Administrative Agent”), (ii) agrees promptly to note on its books the security interests granted to the Administrative Agent and confirmed under the Security Agreement, (iii) agrees that it will comply with instructions of the Administrative Agent with respect to the applicable Securities Collateral without further consent by the applicable Pledgor, (iv) agrees to notify the Administrative Agent upon obtaining knowledge of any interest in favor of any person in the applicable Securities Collateral that is adverse to the interest of the Administrative Agent therein and (v) waives any right or requirement at any time hereafter to receive a copy of the Security Agreement in connection with the registration of any Securities Collateral thereunder in the name of the Administrative Agent or its nominee or the exercise of voting rights by the Administrative Agent or its nominee.

[                                                         ]

By:  

           
__________________________

Name:

Title:

EXHIBIT 2

[Form of]

SECURITIES PLEDGE AMENDMENT

This Securities Pledge Amendment, dated as of [                  ], is delivered pursuant to Section 5.1 of that certain security agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement;” capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement), dated as of December 18, 2003, as amended and restated as of February 9, 2005, made by BRP US Inc., a corporation existing under the laws of Delaware (the “U.S. Revolving Borrower”), the U.S. Guarantors party thereto and BANK OF MONTREAL, as Administrative Agent (in such capacity and together with any successors in such capacity, the “Administrative Agent”).  The undersigned hereby agrees that this Pledge Amendment may be attached to the Security Agreement and that the Pledged Securities and/or Intercompany Notes listed on this Pledge Amendment shall be deemed to be and shall become part of the Pledged Collateral and shall secure all Obligations.

PLEDGED SECURITIES

  
	ISSUER

	CLASS

OF STOCK

OR INTERESTS

  
	PAR

VALUE

  
	CERTIFICATE

NO(S).

	NUMBER OF SHARES

OR

INTERESTS

	PERCENTAGE OF

ALL ISSUED CAPITAL

OR OTHER EQUITY INTERESTS OF ISSUER

INTERCOMPANY NOTES

  
	ISSUER

	PRINCIPAL

AMOUNT

	DATE OF

ISSUANCE

	INTEREST

RATE

	MATURITY

DATE

[                      as Pledgor                            ],

 

By:  

        _________________________

Name:

Title:

AGREED TO AND ACCEPTED:

BANK OF MONTREAL,  

     as Administrative Agent

By:  

        _________________________

Name:

Title:

 

EXHIBIT 3

[Form of]

JOINDER AGREEMENT

[Name of New Pledgor]

[Address of New Pledgor]

[Date]

                                          

                                          

                                          

                                          

Ladies and Gentlemen:

Reference is made to that certain security agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement;” capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement), dated as of December 18, 2003, as amended and restated as of February 9, 2005, made by BRP US Inc., a corporation existing under the laws of Delaware (the “U.S. Revolving Borrower”), the U.S. Guarantors party thereto and BANK OF MONTREAL, as Administrative Agent (in such capacity and together with any successors in such capacity, the “Administrative Agent”).

This letter supplements the Security Agreement and is delivered by the undersigned, [                    ] (the “New Pledgor”), pursuant to Section 3.5 of the Security Agreement.  The New Pledgor hereby agrees to be bound as a U.S. Guarantor and as a Pledgor by all of the terms, covenants and conditions set forth in the Security Agreement to the same extent that it would have been bound if it had been a signatory to the Security Agreement on the execution date of the Security Agreement.  The New Pledgor also hereby agrees to be bound as a party by all of the terms, covenants and conditions applicable to it set forth in Articles 6, 7, and 9 of the Credit Agreement to the same extent that it would have been bound if it had been a signatory to the Credit Agreement (as to Articles 6, 7, and 9 only) on the execution date of the Credit Agreement.  Without limiting the generality of the foregoing, the New Pledgor hereby grants and pledges to the Administrative Agent, as collateral security for the full, prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of the Obligations, a Lien on and security interest in, all of its right, title and interest in, to and under the Pledged Collateral and expressly assumes all obligations and liabilities of a U.S. Guarantor and Pledgor thereunder.  The New Pledgor hereby makes each of the representations and warranties and agrees to each of the covenants applicable to the Pledgors contained in the Security Agreement and Article 5 of the Credit Agreement, except that such representations and warranties expressly relate to the date hereof.

 

Annexed hereto are supplements to each of the schedules to the Security Agreement and the Credit Agreement, as applicable, with respect to the New Pledgor.  Such supplements shall be deemed to be part of the Security Agreement or the Credit Agreement, as applicable.

This agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all such counterparts together shall constitute one and the same agreement.

THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

IN WITNESS WHEREOF, the New Pledgor has caused this letter agreement to be executed and delivered by its duly authorized officer as of the date first above written.

[NEW PLEDGOR]

By:

           
____________________________

Name:

Title:

AGREED TO AND ACCEPTED:

BANK OF MONTREAL,

    as Administrative Agent

By:

____________________________

Name:

Title:

[Schedules to be attached]

EXHIBIT 4

[Form of]

CONTROL AGREEMENT CONCERNING SECURITIES ACCOUNTS

This Control Agreement Concerning Securities Accounts (this “Control Agreement”), dated as of [                    ], by and among BRP US Inc. (the “U.S. Revolving Borrower”), Bank of Montreal (the “Administrative Agent”) and [                    ] (the “Securities Intermediary”), is delivered pursuant to Section 3.4(c) of that certain security agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”), dated as of December 18, 2003 made by and among the U.S. Revolving Borrower, each of the U.S. Guarantors party thereto from time to time (together with the U.S. Borrowers, the “Pledgors”), in favor of Bank of Montreal, as Administrative Agent, as pledgee, assignee and secured party (the “Administrative Agent”), and amended and restated as of February 9, 2005.  This Control Agreement is for the purpose of perfecting the security interests of the Secured Parties granted by the Pledgor in the Designated Securities Accounts described below.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Security Agreement.

Section 1.

Confirmation of Establishment and Maintenance of Designated Accounts.  The Securities Intermediary hereby confirms that (i) the Securities Intermediary has established for the Pledgor and maintains the securities account(s) listed in Schedule I annexed hereto (such account(s), together with each such other securities account maintained by the Pledgor with the Securities Intermediary collectively, the “Designated Accounts” and each a “Designated Account”), (ii) each of the Designated Accounts is a “securities account” as such term is defined in Section 8-501(a) of the UCC, (iii) the Securities Intermediary shall, subject to the terms of this Control Agreement and the Security Agreement, treat the Pledgor as entitled to exercise the rights that comprise any financial asset which is Investment Property and which is credited to a Designated Account and (iv) all securities or other property underlying any financial assets which constitute Investment Property and which are credited to any Designated Account shall be registered in the name of the Securities Intermediary, indorsed to the Securities Intermediary or in blank or credited to another securities account maintained in the name of the Securities Intermediary and in no case will any financial asset credited to any Designated Account be registered in the name of the Pledgor, payable to the order of the Pledgor or specially endorsed to the Pledgor, except to the extent the foregoing have been specially endorsed to the Securities Intermediary or in blank.  For avoidance of doubt, it is noted that the term “Designated Accounts” as used in any security agreement or collateral agreement means both the Designated Accounts hereunder and the “Designated Accounts” in the comparable agreement entered into with respect to any other Pledgor.

Section 2.

“Financial Assets” Election.  The Securities Intermediary hereby agrees that each item of Investment Property (whether investment property, financial asset, security, instrument or cash) credited to any Designated Account shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC.

 

Section 3.

Entitlement Order.  If at any time the Securities Intermediary shall receive an “entitlement order” (within the meaning of Section 8-102(a)(8) of the UCC) issued by the Administrative Agent and relating to Investment Collateral or other Investment Property maintained in one or more of the Designated Accounts, the Securities Intermediary shall comply with such entitlement order without further consent by the Pledgor or any other person.

Section 4.

Subordination of Lien; Waiver of Set-Off.  In the event that the Securities Intermediary has or subsequently obtains by agreement, operation of law or otherwise a security interest in any Designated Account or any Investment Property, the Securities Intermediary hereby agrees that such security interest shall be subordinate to the security interest of the Administrative Agent.  The financial assets and other items deposited to any Designated Account will not be subject to deduction, set-off, banker's lien, or any other right in favor of any Person other than the Secured Parties (except that the Securities Intermediary may set off (i) all amounts due to the Securities Intermediary in respect of its customary fees and expenses for the routine maintenance and operation of the Designated Accounts, including overdraft fees and amounts advanced to settle authorized transactions, and (ii) the face amount of any checks or other items which have been credited to any Designated Account but are subsequently returned unpaid because of uncollected or insufficient funds).

Section 5.

Choice of Law.  Both this Control Agreement and the Designated Accounts shall be governed by the laws of the State of New York.  Regardless of any provision in any other agreement, for purposes of the UCC, New York shall be deemed to be the Securities Intermediary's location and the Designated Accounts (as well as the security entitlements related thereto) shall be governed by the laws of the State of New York.

Section 6.

Conflict with Other Agreements; Amendments.  As of the date hereof, there are no other agreements entered into between the Securities Intermediary and the Pledgor with respect to any Designated Account or any security entitlements or other financial assets credited thereto (other than standard and customary documentation with respect to the establishment and maintenance of such Designated Accounts).  The Securities Intermediary and the Pledgor will not enter into any other agreement with respect to any Designated Account unless the Administrative Agent shall have received prior written notice thereof.  The Securities Intermediary and the Pledgor will not enter into any other agreement with respect to creation or perfection of any security interest in, or control of security entitlements maintained in any of the Designated Accounts without the prior written consent of the Administrative Agent acting in its sole discretion.  In the event of any conflict with respect to “control” over any Designated Account between this Control Agreement (or any portion hereof) and any other agreement now existing or hereafter entered into, the terms of this Control Agreement shall prevail.  No amendment or modification of this Control Agreement or waiver of any rights hereunder shall be binding on any party hereto unless it is in writing and is signed by all the parties hereto.

Section 7.

Certain Agreements.  

(i)

The Securities Intermediary acknowledges receipt of a copy of the Security Agreement.

 

(ii)

The Securities Intermediary has furnished to the Administrative Agent and the Pledgor the most recent account statement issued by the Securities Intermediary with respect to each of the Designated Accounts and the financial assets and cash balances held therein.  The account statement for each Designated Account identifies the Investment Collateral held therein in the manner set forth on Schedule II annexed hereto.  The Securities Intermediary represents and warrants to the Administrative Agent that each such statement accurately reflects the assets held in such Designated Account as of the date thereof.

(iii)

The Securities Intermediary will, upon its receipt of each supplement to the Security Agreement signed by the Pledgor and identifying one or more security entitlements or other financial assets as “Investment Collateral,” enter into its records, including computer records, with respect to each Designated Account a notation with respect to Investment collateral so that such records and reports generated with respect thereto identify the Investment Collateral as “Pledged.”

(iv)

The Administrative Agent has delivered to the Securities Intermediary a list, signed by an authorized representative (the “Authorized Representative”), of the officers of the Administrative Agent authorized to give approvals or instructions under this Control Agreement (including notices and other instructions under Section 12 hereof) and the Securities Intermediary shall be entitled to rely on communications from such authorized officers until the earlier of the termination of this Control Agreement in accordance with the terms hereof, with notification by the Authorized Representative of a change and the assignment of the rights of the Secured Parties in accordance with Section 12 hereof.

Section 8.

Notice of Adverse Claims.  Except for the claims and interest of the Administrative Agent and of the Pledgor in the Investment Collateral and other Investment Property, the Securities Intermediary on the date hereof has not received notice of any claim to, or security interest in, any Designated Account or in any “financial asset” (as defined in Section 8-102(a) of the UCC) credited thereto and has not received notice of any claim that any Person other than the Administrative Agent has been given “control” of any Designated Account or any such financial asset.  If any Person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process and any claim of “control”) against any of the Investment Collateral or in any financial asset carried in any Designated Account constituting Investment Property, the Securities Intermediary will promptly notify the Administrative Agent and the Pledgor thereof.

Section 9.

Maintenance of Designated Accounts.  In addition to, and not in lieu of, the obligation of the Securities Intermediary to honor entitlement orders as agreed in Section 3 hereof, the Securities Intermediary agrees to maintain the Designated Accounts as follows:

(i)

Notice of Sole Control.  If at any time the Administrative Agent delivers to the Securities Intermediary a notice of sole control in substantially the form set forth in Exhibit A attached hereto (the “Notice of Sole Control”) with respect to any Designated Account, the Securities Intermediary agrees that, after receipt of such notice, it will take all instructions with respect to such Designated Account solely from the Administrative Agent.  Permitting settlement of trades pending at the time of receipt of such notice shall not constitute a violation of the immediately preceding sentence.  Without limiting the generality of the first sentence of this paragraph, upon receipt of a Notice of Sole Control, the Securities Intermediary shall (x) no longer permit any trading with respect to the applicable Investment Collateral to be initiated by the Pledgor or any representative of, or investment manager appointed by, the Pledgor and the Securities Intermediary shall follow all instructions given by an authorized officer of the Administrative Agent, including without limitation instructions for distribution or transfer of any Investment Collateral or other Investment Property in any Designated Account to be made to the Administrative Agent and (y) follow all instructions given by an authorized officer of the Administrative Agent, including instructions for distribution or transfer of any funds in any Designated Account to be made to the Administrative Agent.

 

(ii)

Voting Rights.  Until such time as the Securities Intermediary receives a Notice of Sole Control pursuant to clause (i) of this Section 9, the Pledgor, or an investment manager on behalf of the Pledgor, shall direct the Securities Intermediary with respect to the voting of any Investment Collateral or other financial assets constituting Investment Property credited to any Designated Account.

                                   
(iii)     
 Permitted
Dispositions. Until such time as the Securities Intermediary receives either
a Notice of Sole Control signed by the Administrative Agent with respect to some
or all of the Investment Collateral and other Investment Property or a notice
signed by the Administrative Agent that a proposed sale, exchange or transfer of
certain Investment Collateral by or on behalf of the Pledgor will violate the
Security Agreement, a Pledgor, or any representative of, or investment manager
appointed by, a Pledgor, shall direct the Securities Intermediary with respect
to the sale, exchange or transfer of such Investment Collateral held in a
Designated Account. 

                                   
(iv)    
Statements and
Confirmations. The Securities Intermediary will send copies of all
statements and other correspondence (excluding routine confirmations) concerning
any Designated Account or any financial assets constituting Investment Property
credited thereto simultaneously to each of the Pledgor and the Administrative
Agent at the address set forth in Section 12 hereof. The Securities Intermediary
will provide to the Administrative Agent and to the Pledgor, upon the
Administrative Agent's reasonable request therefor from time to time (which may
be as frequent as daily and is expected to be at least as frequent as weekly)
and, in any event as of the last business day of each calendar month, a
statement of the market value of each item of the Investment Collateral in each
Designated Account.a 

(v)

Bailee for Perfection.  The Securities Intermediary acknowledges that, in the event that it should come into possession of any certificate representing any security or other assets held as Investment Collateral in any of the Designated Accounts, the Securities Intermediary shall retain possession of the same for the benefit of the Administrative Agent (and such act shall cause the Securities Intermediary to be deemed a bailee for the Administrative Agent, if necessary) to perfect the Administrative Agent's security interest in such securities or assets.  The Securities Intermediary hereby acknowledges its receipt of a copy of the Security Agreement as notice to the Securities Intermediary regarding notice of a security interest in collateral held by a bailee.

__________________

* Subject to Bank of Montreal
administrative procedures. 

(vi)

Certain Matters Relating to Interest, Dividends, etc.  Until receipt of a Notice of Sole Control with respect to some or all of the Investment Collateral, the Securities Intermediary shall have no responsibility to furnish reports to the Administrative Agent with respect to, or to segregate or otherwise account to the Administrative Agent for, dividends, interest or other amounts received in Designated Accounts with respect to Investment Collateral.

Section 10.

Representations, Warranties and Covenants of the Securities Intermediary.  The Securities Intermediary hereby makes the following representations, warranties and covenants:

(i)

The Designated Accounts have been established as set forth in Section 1 hereof and each Designated Account will be maintained in the manner set forth herein until termination of this Control Agreement.  The Securities Intermediary shall not change the name or account number of any Designated Account without the prior written consent of the Administrative Agent.

(ii)

No financial asset constituting Investment Collateral is or will be registered in the name of the Pledgor, payable to its order or specially indorsed to it, except to the extent such financial asset has been indorsed to the Securities Intermediary or in blank.

(iii)

This Control Agreement is the valid and legally binding obligation of the Securities Intermediary.

(iv)

The Securities Intermediary has not entered into any agreement with any other Person pursuant to which it has agreed to comply with entitlement orders (as defined in Section 8-102(a)(8) of the UCC) with respect to financial assets credited to any Designated Account.  Until the termination of this Control Agreement the Securities Intermediary will not, without the written approval of the Administrative Agent, enter into any agreement with any Person pursuant to which it agrees to comply with entitlement orders with respect to Investment Collateral.  Until the termination of this Control Agreement, the Securities Intermediary will not, without the written approval of the Administrative Agent (which shall not be unreasonably withheld), enter into any agreement with any Person relating to any Designated Account or any financial assets credited thereto pursuant to which it agrees to comply with entitlement orders of such Person.

(v)

The Securities Intermediary is a “securities intermediary” as defined in Article 8-102(a)(14) of the UCC.

The Securities Intermediary has not entered into any other agreement with the Pledgor or Administrative Agent purporting to limit or condition the obligation of the Securities Intermediary to comply with entitlement orders with respect to financial assets credited to any Designated Account as set forth in Section 3 hereof.

 

Section 11.

Successors; Assignment.  The terms of this Control Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective corporate successors and permitted assignees.
 

Section 12.

Notices.  Any notice, request or other communication required or permitted to be given under this Control Agreement shall be in writing and deemed to have been properly given when delivered in person, or when sent by telecopy or other electronic means and electronic confirmation of error free receipt is received or two (2) days after being sent by certified or registered United States mail, return receipt requested, postage prepaid, addressed to the party at the address set forth below.

Pledgors:

[                                   ]

[Address]

Attention:

Telecopy:

Telephone:

with copy to:

[                                   ]

[Address]  

Attention:

Telecopy:

Telephone:

Securities

Intermediary:  

[                                   ]

[Address]

Attention:

Telecopy:  

Telephone:  

Administrative

Agent:

Bank of Montreal 

115 South LaSalle Street, 11th Floor

Chicago, Illinois  60603

Attention:  Terri Perez-Ford

Telecopy:  (312) 750-3456

Telephone: (312) 461-5594

 

with a copy to:

 

  
    
      
        
          	Cahill
              Gordon & Reindel LLP
	80 Pine
              Street	 
	New York,
              New York 10005
	Attention:	Michael E.
              Michetti
	Telecopy:	(212)
              269-5420
	Telephone:	(212)
              701-3000

        

      

    

  

Any party may change its address for notices in the manner set forth above.

Section 13.

Termination.  The rights and powers granted herein to the Administrative Agent have been granted in order to perfect the security interests of the Secured Parties in the Investment Collateral and other Investment Property maintained in the Designated Accounts, are powers coupled with an interest and will be affected neither by the bankruptcy of the Pledgor nor by the lapse of time.  The obligations of the Securities Intermediary hereunder shall continue in effect until the security interests of the Secured Parties (including by virtue of the notice pursuant to Section 12 hereof) with respect to the Investment Collateral and other Investment Property have been terminated and an Authorized Representative has notified the Securities Intermediary of such termination in writing.

Section 14.

Definitions.  The following terms shall have the following meanings:

“Investment Collateral” shall mean, all “investment property,” as such term is used in the UCC, of the Pledgor and, in any event, shall include (i) the Designated Account, (ii) all financial assets, cash, checks, drafts, securities and instruments deposited or held or required to be deposited or held in the Designated Account and all security entitlements relating thereto, (iii) all investments and all certificates and instruments, if any, from time to time representing or evidencing any other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing items listed in clauses (i) and (ii) of this definition and (iv) each consent, control or other agreement, including this Control Agreement, entered into by the Pledgor with the Securities Intermediary and all rights, if any, and interests of the Pledgor in, to and under each such consent, control or other agreement; provided, however, that Investment Collateral shall in no event include the Investment Property.

“UCC” shall mean the Uniform Commercial Code as in effect in the State of New York from time to time.

Section 15.

Severability.  If any term or provision set forth in this Agreement shall be invalid or unenforceable, the remainder of this Agreement, other than those provisions held invalid or unenforceable, shall be construed in all respects as if such invalid or unenforceable term or provision were omitted.

Section 16.

Counterparts.  This Control Agreement may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Control Agreement by signing and delivering one or more counterparts.

[                      as Pledgor                         ],

 

By:  

           
_____________________

Name:

Title:

BANK OF MONTREAL,

as Administrative Agent

By:  

           
______________________

Name:

Title:

[                                                                    ],

as Securities Intermediary

By:  

           
_______________________

Name:

Title:

SCHEDULE I

Designated Account(s)

SCHEDULE II

 

EXHIBIT A

[Letterhead of BANK OF MONTREAL]

[Date]

[Securities Intermediary]

[Address]

Attention:  

Re: Notice of Sole Control

Ladies and Gentlemen:

As referenced in Section 9(i) of the Control Agreement Concerning Designated Accounts dated as of [                                   ], by and among [                                   ], us and you (the “Control Agreement;” capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Control Agreement) (a copy of which is attached) we hereby give you notice of our sole control over the Investment Collateral and other financial assets constituting Investment Property maintained in the securities accounts, account numbers:  ________________ (the “Specified Designated Accounts”).  You are hereby instructed not to accept any direction, instruction or entitlement order with respect to Investment Collateral maintained in the Specified Designated Accounts or the financial assets constituting Investment Property credited thereto from any person other than the undersigned, unless otherwise ordered by a court of competent jurisdiction.

You are instructed to deliver a copy of this notice by facsimile transmission to the U.S. Revolving Borrower and the Canadian Borrower.

Very truly yours,

BANK OF MONTREAL, 

as Administrative Agent

By:  

           
____________________

Name:

Title:

cc: BRP US Inc

Bombardier Recreational Products Inc.

 

EXHIBIT 5

[Form of]

CONTROL AGREEMENT CONCERNING DEPOSIT ACCOUNTS

This CONTROL AGREEMENT CONCERNING DEPOSIT ACCOUNTS (this “Control Agreement”), dated as of [                              ], by and among BRP US Inc. (the “U.S. Revolving Borrower”), BANK OF MONTREAL (the “Administrative Agent”) and
 

[                             ] (the “Bank”), is delivered pursuant to Section 3.4(b) of that certain security agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”), dated as of December 18, 2003, and amended and restated as of February 9, 2005, made by the U.S. Revolving Borrower, each of the U.S. Guarantors party thereto from time to time (together with the U.S. Revolving Borrower, the “Pledgors”), in favor of BANK OF MONTREAL, as Administrative Agent, as pledgee, assignee and secured party (the “Administrative Agent”).  This Control Agreement is for the purpose of perfecting the security interests of the Secured Parties granted by the Pledgor in the Designated Accounts described below.  All references herein to the “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of New York.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Security Agreement.

Section 1.

Confirmation of Establishment and Maintenance of Designated Accounts.  The Bank hereby confirms that (i) the Bank has established for the Pledgor and maintains the deposit account(s) listed in Schedule 1 annexed hereto (such deposit account(s), together with each such other deposit account maintained by the Pledgor with the Bank collectively, the “Designated Accounts” and each a “Designated Account”), (ii) each Designated Account is a “deposit account” as such term is defined in Article 9 of the UCC.  For avoidance of doubt, it is noted that the term “Designated Accounts” as used in any security agreement means both the Designated Accounts hereunder and the “Designated Accounts” in the comparable agreement entered into with respect to any other Pledgor.

Section 2.

Control.  The Administrative Agent shall at all times (A) have “control” (as defined in Section 9-104 of the UCC) of any Designated Account and (B) be authorized to direct the Bank to comply without further consent of the Pledgor or any person acting or purporting to act for the Pledgor being required, with all instructions originated by the Administrative Agent directing disposition of the funds in the Designated Account.  The Pledgor, the Administrative Agent, and the Bank agree that the Bank will comply with instructions originated by the Administrative Agent directing the disposition of the funds in the Designated Account without further consent by the Pledgor.  Notwithstanding the foregoing, the Bank shall comply with instructions directing the disposition of funds in the Designated Account(s) originated by the Pledgor or its authorized representatives until such time as the Administrative Agent delivers a Notice of Sole Control pursuant to Section 8(i) hereof to the Bank.

Section 3.

Subordination of Lien; Waiver of Set-Off.  In the event that the Bank has or subsequently obtains by agreement, operation of law or otherwise a security interest in any Designated Account, the Bank hereby agrees that such security interest shall be subordinate to that of the Secured Parties.  The funds deposited into any Designated Account will not be subject to deduction, set-off, banker's lien, or any other right in favor of any Person other than the Secured Parties (except that the Bank may set off (i) all amounts due to the Bank in respect of its customary fees and expenses for the routine maintenance and operation of the Designated Accounts, including overdraft fees, and (ii) the face amount of any checks or other items which have been credited to any Designated Account but are subsequently returned unpaid because of uncollected or insufficient funds).

 

Section 4.

Choice of Law.  Both this Control Agreement and the Designated Account(s) shall be governed by the law of the State of New York.  Regardless of any provision in any other agreement, for purposes of the UCC, New York shall be deemed to be the Bank's jurisdiction and the Designated Account(s) shall be governed by the law of the State of New York.

Section 5.

Conflict with Other Agreements; Amendments.  As of the date hereof, there are no other agreements entered into between the Bank and the Pledgor with respect to any Designated Account or any funds credited thereto (other than standard and customary documentation with respect to the establishment and maintenance of such Designated Accounts).  The Bank and the Pledgor will not enter into any other agreement with respect to any Designated Account unless the Administrative Agent shall have received prior written notice thereof.  The Bank and the Pledgor will not enter into any other agreement with respect to control of the Designated Accounts without the prior written consent of the Administrative Agent acting in its sole discretion.  In the event of any conflict with respect to “control” over any Designated Account between this Control Agreement (or any portion hereof) and any other agreement now existing or hereafter entered into, the terms of this Control Agreement shall prevail.  No amendment or modification of this Control Agreement or waiver of any right hereunder shall be binding on any party hereto unless it is in writing and is signed by all the parties hereto.

Section 6.

Certain Agreements.

(i)

The Bank has furnished to the Administrative Agent and the Pledgor the most recent account statement issued by the Bank with respect to each of the Designated Accounts and the cash balances held therein.  The Bank represents and warrants to the Administrative Agent that each such statement accurately reflects the assets held in such Designated Account as of the date thereof.

(ii)

The Administrative Agent has delivered to the Bank a list, signed by an authorized representative (the “Authorized Representative”), of the officers of the Administrative Agent authorized to give approvals or instructions under this Control Agreement (including notices and other instructions under Section 11 hereof) and the Bank shall be entitled to rely on communications from such authorized officers until the earlier of the termination of this Control Agreement in accordance with the terms hereof, the notification by the Authorized Representative of a change and the assignment of the rights of the Secured Parties in accordance with Section 11 hereof.  

Section 7.

Notice of Adverse Claims.  Except for the claims and interest of the Secured Parties and of the Pledgor in the Designated Account(s), the Bank on the date hereof has not received notice of any claim to, or security interest in, any Designated Account or in any funds credited thereto and has not received notice of any claim that any Person other than the Administrative Agent has been given “control” of any Designated Account or any such funds.  If any Person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process and any claim of “control”) against any funds in any Designated Account, the Bank will promptly notify the Administrative Agent and the Pledgor thereof.

 

Section 8.

Maintenance of Designated Accounts.  In addition to, and not in lieu of, the obligation of the Bank agreed in Section 2 hereof, the Bank agrees to maintain the Designated Accounts as follows:

(i)

Notice of Sole Control.  If at any time the Administrative Agent delivers to the Bank a notice of sole control in substantially the form set forth in Exhibit A attached hereto (the “Notice of Sole Control”) with respect to any Designated Account, the Bank agrees that, after receipt of such notice, it will take all instruction with respect to such Designated Account solely from the Administrative Agent.  Without limiting the generality of the first sentence of this paragraph, upon receipt of a Notice of Sole Control, the Bank shall follow all instructions given by an authorized officer of the Administrative Agent, including instructions for distribution or transfer of any funds in any Designated Account to be made to the Administrative Agent.

(ii)

Permitted Dispositions.  Until such time as the Bank receives a Notice of Sole Control signed by the Administrative Agent with respect to a Designated Account, a Pledgor, or any representative of a Pledgor, shall direct the Bank with respect to the transfer of the funds held in such Designated Account.  Until such time as the Bank receives a Notice of Sole Control, the Pledgor shall be entitled to write checks against amounts in each Designated Account, and make withdrawals, transfers, and other dispositions of the funds in each Designated Account.

(iii)

Statements and Confirmations.  The Bank will promptly send copies of all statements and other correspondence (excluding routine confirmations) concerning any Designated Account to each of the Pledgor and the Administrative Agent at the address set forth in Section 11 hereof.  The Bank will promptly provide to the Administrative Agent and to the Pledgor, upon the Administrative Agent's request therefor from time to time and, in any event as of the last business day of each calendar month, a statement of the cash balance in each Designated Account.

Section 9.

Representations, Warranties and Covenants of the Bank.  The Bank hereby makes the following representations, warranties and covenants:

(i)

The Designated Accounts have been established as set forth in Section 1 hereof and each Designated Account will be maintained in the manner set forth herein until termination of this Control Agreement.  The Bank shall not change the name or account number of any Designated Account without the prior written consent of the Administrative Agent.

 

(ii)

The Bank is a “bank,” as such term is defined in the UCC.

(iii)

This Control Agreement is the valid and legally binding obligation of the Bank.

(iv)

The Bank has not entered into any agreement with any other Person pursuant to which it has agreed to comply with any orders or instructions with respect to any Designated Account.  Until the termination of this Control Agreement, the Bank will not, without the written approval of the Administrative Agent, enter into any agreement with any Person pursuant to which it agrees to comply with any orders or instructions of such Person with respect to any Designated Account.

(v)

The Bank has not entered into any other agreement with the Pledgor or the Administrative Agent purporting to limit or condition the obligation of the Bank to comply with any orders or instructions with respect to any Designated Account as set forth in Section 2 hereof.

Section 10.

Successors; Assignment.  The terms of this Control Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective corporate successors and permitted assignees.

Section 11.

Notices.  Any notice, request or other communication required or permitted to be given under this Control Agreement shall be in writing and deemed to have been properly given when delivered in person, or when sent by telecopy or other electronic means and electronic confirmation of error free receipt is received or two (2) days after being sent by certified or registered United States mail, return receipt requested, postage prepaid, addressed to the party at the address set forth below.

Pledgors:

[                               ]

[Address]

Attention:

Telecopy:

Telephone:

with copy to:

[                              ] 

[Address] 

Attention:

Telecopy:

Telephone:

Bank:  

[                                             ]

[                                             ]

[                                             ]

Attention:  

Telecopy:  

Telephone:  

Administrative

Agent:

Bank of Montreal 

115 South LaSalle Street, 11th Floor

Chicago, Illinois  60603

Attention:  Terri Perez-Ford

Telecopy:  (312) 750-3456

Telephone: (312) 461-5594

with a copy to:

 

  
    
      
        
          	Cahill
              Gordon & Reindel LLP
	80 Pine
              Street	 
	New York,
              New York 10005
	Attention:	Michael E.
              Michetti
	Telecopy:	(212)
              269-5420
	Telephone:	(212)
              701-3000

        

      

    

  

 

Any party may change its address for notices in the manner set forth above.

Section 12.

Termination.  The rights and powers granted herein to the Administrative Agent have been granted in order to perfect the security interests of the Secured Parties in the Designated Accounts, are powers coupled with an interest and will be affected neither by the bankruptcy of the Pledgor nor by the lapse of time.  The obligations of the Bank hereunder shall continue in effect until the termination of the security interests of the Secured Parties (including by virtue of the notice pursuant to Section 11 hereof) with respect to the Designated Account(s) have been terminated and an Authorized Representative has notified the Bank of such termination in writing.

Section 13.

Severability.  If any term or provision set forth in this Agreement shall be invalid or unenforceable, the remainder of this Agreement, other than those provisions held invalid or unenforceable, shall be construed in all respects as if such invalid or unenforceable term or provision were omitted.

Section 14.

Counterparts.  This Control Agreement may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Control Agreement by signing and delivering one or more counterparts.

[                                                            ]

By:  

           
___________________

Name:

Title:

BANK OF MONTREAL,  

as Administrative Agent

By:  

           
___________________

Name:

Title:

[                                                                 ],

as Bank

By:  

           
____________________

Name:

Title:

SCHEDULE 1

Designated Account(s)

EXHIBIT A

[Letterhead of Bank of Montreal]

[Date]

[Bank]

[Address]

Attention:  _______________

Re:  Notice of Sole Control

Ladies and Gentlemen:

As referenced in Section 8(i) of the Control Agreement Concerning Designated Accounts dated as of [                ], by and among [                   ], us and you (the “Control Agreement;” capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Control Agreement) (a copy of which is attached) we hereby give you notice of our sole control over the Designated Account(s), account number(s):  _______________________________ (the “Specified Designated Accounts”).  You are hereby instructed not to accept any direction or instructions with respect to the Specified Designated Accounts or any funds credited thereto from any Person other than the undersigned, unless otherwise ordered by a court of competent jurisdiction.

 

You are instructed to deliver a copy of this notice by facsimile transmission to the U.S. Revolving Borrower and the Canadian Borrower.

Very truly yours,

BANK OF MONTREAL,  

as Administrative Agent

By:  

           
_____________________

Name:

Title:

cc:  BRP US Inc.

Bombardier Recreational Products Inc.

EXHIBIT 6

[Form of]

COPYRIGHT SECURITY AGREEMENT

[To Come]

 

EXHIBIT 7

[Form of]

PATENT SECURITY AGREEMENT

[To come]

 

EXHIBIT 8

[Form of]

TRADEMARK SECURITY AGREEMENT

[To come]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]