Document:

exv4w2

 

Exhibit 4.2

FIRST SUPPLEMENTAL INDENTURE

Dated as of September 15, 2004

TO

INDENTURE

Dated as of October 15, 2002

Among

GOLFSMITH INTERNATIONAL, INC.,

as Issuer,

U.S. BANK TRUST NATIONAL ASSOCIATION,

as Trustee

AND

THE GUARANTORS NAMED HEREIN,

as Guarantors

 

 

     FIRST SUPPLEMENTAL INDENTURE, dated as of September 15, 2004, (the “First
Supplemental Indenture”) between Golfsmith International, Inc., a Delaware
corporation (the “Company”), the guarantors listed on the signature pages
hereto (the “Guarantors”), and U.S. Bank Trust National Association, as trustee
(the “Trustee”), to the Indenture (the “Indenture”) dated as of October 15,
2002, among the Company, the Guarantors, and the Trustee. All capitalized
terms used in this First Supplemental Indenture and not otherwise defined have
the meanings assigned to them in the Indenture.

RECITALS

     WHEREAS, the Company desires to make certain modifications to Sections
4.14, 4.22, and 4.24 of the Indenture;

     WHEREAS, Section 9.02 of the Indenture provides that, subject to certain
exceptions, the Indenture may be amended or supplemented by the Company, the
Guarantors and the Trustee with the written consent of the Holder or Holders of
at least a majority in aggregate principal amount of the outstanding Notes;

     WHEREAS, the Board of Directors of the Company, by written consent
effective as of August 25, 2004, authorized (i) the solicitation of consents to
certain proposed amendments to the Indenture (the “Proposed Amendments”) and
(ii) the execution and delivery of this First Supplemental Indenture upon
receipt of the necessary consents;

     WHEREAS, the Board of Directors of each of the Guarantors, by written
consent effective as of August 25, 2004, authorized the execution and delivery
of this First Supplemental Indenture upon receipt of the necessary consents;

     WHEREAS, the Holders of at least a majority in aggregate principal amount
of the outstanding Notes have consented to the Proposed Amendments;

     WHEREAS, in accordance with Sections 9.02, 9.04, 9.06, 11.04, and 11.05 of
the Indenture, the Company has furnished the Trustee with an Officers’
Certificate and an Opinion of Counsel; and

     WHEREAS, all actions have been taken that are necessary to make this First
Supplemental Indenture a valid and binding agreement by and between the
Company, the Guarantors and the Trustee and a valid and binding amendment of,
and supplement to, the Indenture;

     NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Company, the Guarantors, and the Trustee agree for the
benefit of the other parties and for the equal and ratable benefit of the
Holders of the outstanding Notes:

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ARTICLE I

EFFECTIVENESS AND EFFECT

     SECTION 1.01. Effectiveness and Effect.

     This First Supplemental Indenture shall take effect on the date hereof.
The provisions set forth in this First Supplemental Indenture shall be deemed
to be, and shall be construed as part of, the Indenture, the terms of which
shall bind every Holder. On and after the date hereof, all references to the
Indenture in the Indenture or in any other agreement, document or instrument
delivered in connection therewith or pursuant thereto shall be deemed to refer
to the Indenture as amended by this First Supplemental Indenture.

ARTICLE II

AMENDMENT OF CERTAIN PROVISIONS OF THE INDENTURE

     SECTION 2.01. Restatement of Certain Provisions.

     (a) Section 1.01 of the Indenture is hereby amended so that the definition
of “Capital Expenditures Basket” reads in its entirety as follows:

     “Capital Expenditure Basket” means, in any fiscal year, (x)
$7,000,000 plus (y) the amount, if any, of the Excess Cash Flow
Offer made and not accepted by the Holders during the immediately
preceding fiscal year plus (z) any Capital Expenditure Basket
amounts (not to exceed $1,000,000) not previously applied by the
Company as Capital Expenditures.

     (b) Section 4.14(c) of the Indenture is hereby amended and restated in its
entirety to read as follows:

     (c) take such actions necessary or advisable to grant to the
Collateral Agent for the benefit of the Holders and the Trustee a
perfected security interest in the assets (but only to the extent
that such a perfected security interest would be granted by any
other Domestic Restricted Subsidiary pursuant to the terms of this
Indenture) of such new Subsidiary, subject only to Permitted Liens,
including the filing of Uniform Commercial Code financing
statements in such jurisdictions as may be required by the Security
Agreement or by law or as may be reasonably requested by the
Collateral Agent.

     (c) The first paragraph of Section 4.22 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     The Company and each of its Restricted Subsidiaries shall
deliver Mortgages with respect to the Company’s and each Restricted
Subsidiary’s leasehold interests in the premises (the “Leased
Premises”) occupied by the Company or any Restricted Subsidiary
pursuant to leases originally entered into by the Company or by any
Restricted Subsidiary (if and only if such Restricted

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Subsidiary was a Restricted Subsidiary at the time such Lease
or Leases were originally entered into) after the Issue Date
(collectively, the “Leases,” and individually, a “Lease”), other
than, in any case, renewals (or replacements) of leases.

     (d) Section 4.24 of the Indenture is hereby amended and restated in its
entirety to read as follows:

     The aggregate amount of the Company’s and its Restricted
Subsidiaries’ Capital Expenditures in any fiscal year is limited to
the greater of (i) one third of the Company’s EBITDA in the
immediately preceding fiscal year and (ii) the Capital Expenditures
Basket.

ARTICLE III

MISCELLANEOUS

     SECTION 3.01. Ratification of Indenture.

     The Indenture, as amended by this First Supplemental Indenture, is in all
respects ratified and confirmed and all of its terms, conditions and provisions
shall remain in full force and effect. Except as expressly amended hereby, all
of the terms and provisions of the Indenture shall continue in full force and
effect.

     SECTION 3.02. Governing Law.

     THIS FIRST SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAWS. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS FIRST SUPPLEMENTAL INDENTURE.

     SECTION 3.03. Duplicate Originals.

     All parties may sign any number of copies of this First Supplemental
Indenture. Each signed copy shall be an original, but all of them together
shall represent the same agreement.

     SECTION 3.04. Trustee.

     The recitals herein contained are made by the Company and the Guarantors
and not by the Trustee, and the Trustee assumes no responsibility for the
correctness thereof. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this First
Supplemental Indenture.

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     SECTION 3.05. Trust Indenture Act Controls.

     If any provision of this First Supplemental Indenture limits, qualifies,
or conflicts with another provision which is required to be included in this
First Supplemental Indenture by the TIA, the required provision shall control.
Any provision of the TIA which is required to be included in a qualified
indenture, but not expressly included herein, shall be deemed to be included by
this reference.

     SECTION 3.06. Severability.

     In case any one or more of the provisions contained in this First
Supplemental Indenture shall for any reason be held to be invalid, illegal or
unenforceable in any respect or for any reason, the validity, legality and
unenforceability of any such provision in every other respect and of the
remaining provision shall not in any way be affected or impaired thereby, it
being intended that all of the provisions hereof shall be enforceable to the
full extent permitted by law.

     SECTION 3.07. Successors.

     All agreements of the Company and the Guarantors in this First
Supplemental Indenture shall bind their successors. All agreements of the
Trustee in this First Supplemental Indenture shall bind its successors.

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

	 	 	 	 	 
	 	GOLFSMITH INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	/s/
Angelita L. Pena
 	 
	 	 	Name:  	Angelita L. Pena 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	GOLFSMITH INTERNATIONAL HOLDINGS, INC., as Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLFSMITH GP HOLDINGS, INC., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 

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	 	DON SHERWOOD GOLF SHOP, as Subsidiary Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLFSMITH HOLDINGS, L.P., as Subsidiary Guarantor

By: Golfsmith GP Holdings, Inc., as General Partner

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLFSMITH GP, L.L.C., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLFSMITH DELAWARE, L.L.C., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLFSMITH CANADA, L.L.C., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 

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	 	GOLFSMITH EUROPE, L.L.C., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLFSMITH USA, L.L.C., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLFSMITH NU, L.L.C., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLFSMITH LICENSING, L.L.C., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 
	 	GOLFSMITH INTERNATIONAL, L.P., as Subsidiary Guarantor

By: Golfsmith GP, L.L.C., as General Partner

 	 
	 	By:  	/s/ Noel E. Wilens
 	 
	 	 	Name:  	Noel E. Wilens 	 
	 	 	Title:  	Vice President 	 
	 

8exv10w1

 

Exhibit 10.1

REVOLVING CREDIT AND TERM

LOAN AGREEMENT

DATED AS OF AUGUST 10, 2004

AMONG

COMMERCIAL VEHICLE GROUP, INC.,

as the Company

THE SUBSIDIARY BORROWERS

FROM TIME TO TIME PARTIES HERETO,

THE FOREIGN CURRENCY BORROWERS

FROM TIME TO TIME PARTIES HERETO,

THE BANKS

FROM TIME TO TIME PARTIES HERETO

U.S. BANK NATIONAL ASSOCIATION,

as Administrative Agent, and

COMERICA BANK,

as Syndication Agent

Dorsey & Whitney LLP

50 South Sixth Street

Minneapolis, Minnesota 55402

 

 

Exhibit 10.1

REVOLVING CREDIT AND TERM LOAN AGREEMENT

     THIS REVOLVING CREDIT AND TERM LOAN AGREEMENT, dated as of August 10,
2004, is by and among COMMERCIAL VEHICLE GROUP, INC., a Delaware corporation
(the “Company”), the SUBSIDIARY BORROWERS from time to time parties hereto, the
FOREIGN CURRENCY BORROWERS from time to time parties hereto, the BANKS from
time to time parties hereto, U.S. BANK NATIONAL ASSOCIATION, a national banking
association, one of the Banks, as administrative agent for the Banks (in such
capacity, the “Agent”) and COMERICA BANK, a Michigan banking corporation, one
of the Banks, as syndication agent for the Banks (in such capacity, the
“Syndication Agent”).

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     Section 1.1 Defined Terms. As used in this Agreement the following terms
shall have the following respective meanings (and such meanings shall be
equally applicable to both the singular and plural form of the terms defined,
as the context may require):

     “Account”: As at any date of determination, all “accounts” (as such term
is defined in the UCC) of a Borrower, including, without limitation, the unpaid
portion of the obligation of a customer of a Borrower in respect of Inventory
purchased by and shipped to such customer and/or the rendition of services by a
Borrower, as stated on the respective invoice of a Borrower.

     “Account Debtor”: The Person who is obligated on or under an Account.

     “Adjusted Eurocurrency Rate”: With respect to each Interest Period
applicable to a Eurocurrency Rate Advance, the rate (rounded upward, if
necessary, to the next one hundredth of one percent) determined by dividing the
Eurocurrency Rate for such Interest Period by the difference of 1.00 minus the
Eurocurrency Reserve Percentage.

     “Advance”: Any portion of the outstanding Revolving Loans or Term Loans
or Term Loans (Foreign Currency) by a Bank as to which one of the available
interest rate options and, if pertinent, an Interest Period, is applicable. An
Advance may be a Eurocurrency Rate Advance or a Prime Rate Advance, and may, as
the context may require, include a Foreign Currency Advance.

     “Affiliate”: When used with reference to any Person, (a) each Person
that, directly or indirectly, controls, is controlled by or is under common
control with, the Person referred to, (b) each Person which beneficially owns
or holds, directly or indirectly, ten percent or more of the voting Equity
Interests of the Person referred to, (c) each Person, ten percent or more of
the voting Equity Interests of which is beneficially owned or held, directly or
indirectly, by the Person referred to, and (d) each of such Person’s officers,
directors, joint venturers and partners. The term control (including the terms
“controlled by” and “under common control with”) means the possession,
directly, of the power to direct or cause the direction of the management and
policies of the Person in question.

 

 

     “Agent”: As defined in the opening paragraph hereof.

     “Aggregate Revolving Commitment Amounts”: As of any date, the sum of the
Revolving Commitment Amounts of all the Banks.

     “Applicable Lending Office”: For each Bank and for each type of Advance,
the office of such Bank identified as such Bank’s Applicable Lending Office on
the signature pages hereof or such other domestic or foreign office of such
Bank (or of an Affiliate of such Bank) as such Bank may specify from time to
time, by notice given pursuant to Section 9.4, to the Agent and the Borrowers’
Agent as the office by which its Advances of such type are to be made and
maintained.

     “Applicable Commitment Fee Percentage”: Subject to the last sentence of
this definition, for an initial period beginning on and including the Closing
Date through February 10, 2005, the Applicable Commitment Fee Percentage shall
be 0.375%, and thereafter with respect to each period beginning five days after
the financial statements and compliance certificate required by Sections 5.2(a)
and (b) are delivered with respect to any fiscal quarter (commencing with the
fiscal quarter ending December 31, 2004) and ending on the day five days after
the date such financial statements and compliance certificate for the next
fiscal quarter are actually delivered, the percentage specified in the table
below as the Applicable Commitment Fee Percentage based on the Total Leverage
Ratio calculated as of the end of the fiscal quarter for which such statements
were delivered:

	 	 	 	 	 
	 	 	Applicable Commitment
	Total Leverage Ratio
	 	Fee Percentage

	3 3.00x
	 	 	0.500	%
	3 2.50x to <3.00x
	 	 	0.500	%
	3 2.00x to <2.50x
	 	 	0.375	%
	3 1.50x to <2.00x
	 	 	0.250	%
	< 1.50x
	 	 	0.250	%

During the period beginning on the date five days after the financial
statements and compliance certificate for a fiscal quarter are required to be
delivered pursuant to Sections 5.2(a) and (b) but are not delivered and ending
five days after the date such financial statements are delivered, the
Applicable Commitment Fee Percentage shall be as specified for a Total Leverage
Ratio greater than 3.00.

     “Applicable Margin”: Subject to the last sentence of this definition, for
an initial period beginning on and including the Closing Date through February
10, 2005, the Applicable Margin for Prime Rate Advances shall be 1.00% per
annum and for Eurocurrency Rate Advances shall be 2.25% per annum, and
thereafter with respect to each period beginning five days after the financial
statements and compliance certificate required by Sections 5.2(a) and (b) are
delivered with respect to any fiscal quarter (commencing with the fiscal
quarter ending December 31, 2004) and ending on the day five days after the
date such financial statements and compliance

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certificate for the next fiscal quarter are actually delivered, the
percentage specified in the table below as applicable to Prime Rate Advances or
Eurocurrency Advances, based on the Total Leverage Ratio calculated as of the
end of the fiscal quarter for which such financial statements were delivered:

	 	 	 	 	 	 	 	 	 
	 	 	Eurocurrency	 	Prime
	 	 	Rate	 	Rate
	Total Leverage Ratio
	 	Advances
	 	Advances

	3 3.00x
	 	 	3.25	%	 	 	1.75	%
	3 2.50x to <3.00x
	 	 	2.75	%	 	 	1.50	%
	3 2.00x to <2.50x
	 	 	2.25	%	 	 	1.00	%
	3 1.50x to <2.00x
	 	 	2.00	%	 	 	0.75	%
	< 1.50x
	 	 	1.75	%	 	 	0.50	%

During the period beginning on the date five days after the financial
statements and compliance certificate for a fiscal quarter are required to be
delivered pursuant to Sections 5.1(a) and (b) but are not delivered and ending
five days after the date such financial statements are delivered, the
Applicable Margin shall be as specified for a Total Leverage Ratio greater than
3.00. The Applicable Margin applicable to any outstanding Eurocurrency Rate
Advances and Prime Rate Advances shall change as and when the Applicable Margin
changes pursuant to this definition.

     “Assignees”: As defined in Section 9.6(c).

     “Assignment Agreement”: As defined in Section 9.6(c).

     “Assumption Letter”: A certain letter of a new Subsidiary Borrower in
substantially the form of Exhibit 1.1A hereto.

     “Banks”: The banks listed on the signature pages of this Agreement.

     “Board”: The Board of Governors of the Federal Reserve System or any
successor thereto.

     “Borrowers”: The Company, the Subsidiary Borrowers and the Foreign
Currency Borrowers.

     “Borrowers’ Agent”: The Company.

     “Borrower Loan Documents”: This Agreement, the Notes and any of the
Security Documents to be executed by a Borrower.

     “Borrowing Base”: With respect to Subsidiary Borrowers, as determined in
accordance with the formula set forth in Exhibit 1.1B.

     “Borrowing Base Certificate”: A certificate in the form of Exhibit 1.1C.

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     “Borrowing Base Deficiency”: At the time of any determination, the
amount, if any, by which Total Revolving Outstandings exceed the Borrowing
Base.

     “Business Day”: Any day (other than a Saturday, Sunday or legal holiday
in the States of Minnesota or Michigan) on which banks are permitted to be open
in Minneapolis, Minnesota and Detroit, Michigan.

     “Capital Expenditures”: For any Person for any period, the sum of all
expenditures made, directly or indirectly, by such Person or any of its
Subsidiaries during such period for equipment, fixed assets, real property or
improvements, or for replacements or substitutions therefore or additions
thereto, that have been or should be, in accordance with GAAP, reflected as
additions to property, plant or equipment on a consolidated balance sheet of
such Person; provided, however, that Capital Expenditures shall not include (i)
proceeds from insurance or condemnation to the extent that such proceeds from
insurance or condemnation are reinvested in assets as permitted under this
Agreement, (ii) any portion of the purchase price paid in connection with a
Permitted Acquisition or (iii) proceeds from the sale of assets reinvested
within 180 days in assets, (iv) amounts expended in respect of normal repair
and maintenance of plant facilities, machinery, fixtures and other like capital
assets utilized in the ordinary conduct of business (to the extent such amounts
would not be capitalized in preparing a balance sheet determined in accordance
with GAAP) or (v) are made from proceeds from the sale or issuance of equity
by, or equity contribution made to the Company.

     “Capitalized Lease”: A lease of (or other agreement conveying the right
to use) real or personal property with respect to which at least a portion of
the rent or other amounts thereon constitute Capitalized Lease Obligations.

     “Capitalized Lease Obligations”: As to any Person, the obligations of
such Person to pay rent or other amounts under a lease of (or other agreement
conveying the right to use) real or personal property which obligations are
required to be classified and accounted for as a capital lease on a balance
sheet of such Person under GAAP (including Statement of Financial Accounting
Standards No. 13 of the Financial Accounting Standards Board), and, for
purposes of this Agreement, the amount of such obligations shall be the
capitalized amount thereof, determined in accordance with GAAP (including such
Statement No. 13).

     “Cash Dividends”: Dividends paid in cash by the Company to its
shareholders.

     “Cash Equivalents”: Cash, cash equivalents or short-term marketable debt
securities.

     “Change of Control”: With respect to the Company, the occurrence, after
the Closing Date, of any of the following circumstances: (a) any Person or two
or more Persons (other than Onex Corporation) acting in concert acquiring by
contract or otherwise, or entering into a contract or agreement which upon
consummation will result in its or their acquisition of, control over Equity
Interests of the Company representing 18% or more of the combined voting
entitled to vote in the election of directors of the Company, and (b) the
Company ceasing to own, directly or indirectly at least 51% of all Equity
Interests of each Subsidiary thereof entitled to vote in the election of
directors (or other similar body) of such Subsidiary.

     “Charges”: As defined in Section 9.19.

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     “Closing Date”: Any Business Day selected by the Borrowers for the making
of the first Loans hereunder; provided, that all the conditions precedent to
the obligation of the Banks to make such Loans, as set forth in Article III,
have been, or, on such Closing Date, will be, satisfied.

     “Code”: The Internal Revenue Code of 1986, as amended.

     “Collateral”: All Property and interests in Property and proceeds thereof
now owned or hereafter acquired by the Company, the Subsidiary Borrowers or any
other Person in or upon which a Lien now or hereafter exists in favor of any
Bank or the Agent for the benefit of the Agent and Banks, whether under this
Agreement or under any other documents executed by any such Persons and
delivered to the Agent.

     “Commitments”: The Revolving Commitments and the Term Loan Commitments
and the Term Loan Commitments (Foreign Currency) and the Swingline Commitment.

     “Consolidated Interest Expense”: For any period, the total interest
expense (including that attributable to capital leases) of the Company and its
Subsidiaries on a consolidated basis in accordance with GAAP (excluding costs
and expenses related to the incurrence of indebtedness).

     “Consolidated Cash Interest Expense”: For any period, Consolidated
Interest Expense payable in cash less (i) any reasonable fees (including
underwriting fees) and expenses paid in connection with the consummation of the
Merger, IPO, Permitted Acquisitions or permitted Investments, (ii) any payments
made to obtain any Rate Contracts, (iii) any agent or collateral monitoring
fees paid or required to be paid pursuant to this Agreement, (iv) the actual or
implied interest component of any consulting payments, (v) interest on
obligations incurred in connection with the repurchase of equity permitted
hereunder and (vi) unused line fees and letter of credit fees and expenses paid
hereunder, in each case net of interest income for such period, as determined
in accordance with GAAP.

     “Contingent Obligation”: As to any Person, any direct or indirect
liability of that Person, whether or not contingent, with or without recourse,
(a) with respect to any Indebtedness, lease, dividend, letter of credit or
other obligation (the “Primary Obligations”) of another Person (the “Primary
Obligor”), including any obligation of that Person (i) to purchase, repurchase
or otherwise acquire such Primary Obligations or any security therefore, (ii)
to advance or provide funds 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
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 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 (i)-(iv), a “Guaranty Obligation”); (b) with respect to any
Surety Instrument issued for the account of that Person or as to which that
Person is otherwise liable for reimbursement of drawings or payments; (c) to
purchase any materials, supplied 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

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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 Rate Contract. The amount of any Contingent Obligation, (w) in the case of
Guaranty Obligations, shall be deemed equal to the least of (i) the stated or
determinable amount of the Primary Obligation in respect of which such Guaranty
Obligation is made or, if not stated or if indeterminable, the maximum
reasonably anticipated liability in respect thereof, (ii) the stated amount of
the guaranty, and (iii) to the extent such Guaranty Obligation is limited to
recovery against a particular asset, the fair market value of such asset, (x)
in the case of Contingent Obligations in respect of Rate Contracts, shall be
deemed equal to the aggregate Rate Contract Termination Value of such Rate
Contracts, (y) in the case of Contingent Obligations in respect of Surety
Instruments, shall be deemed equal to the probable amount of the expected
liability thereunder, and (z) in the case of Contingent Obligations in respect
of Non-Surety Letters of Credit, shall be deemed equal to (A) the face amount
of outstanding Non-Surety Letters of Credit which are not Letters of Credit and
(B) the outstanding amount of Letters of Credit Obligations in respect of
Non-Surety Letters of Credit which are Letters of Credit.

     “Contractual Obligation”: As to any Person, any provision of any security
issued by such Person or of any agreement, undertaking, contract, indenture,
mortgage, deed of trust or other instrument, document or agreement to which
such Person is a party or by which it or any of its Property is bound.

     “Controlled Group” The Company and all Persons (whether or not
incorporated) under common control or treated as a single employer with the
Company pursuant to Section 414(b), (c), (m) or (o) of the Code or Section 4001
of ERISA.

     “Debenture”: That certain Guaranty and Debenture dated concurrently
herewith between the Foreign Currency Borrowers and U.S. Bank National
Association as trustee for the Agent, the Syndication Agent and the Banks, as
the same may be amended, restated or otherwise modified from time to time.

     “Default”: Any event which, with the giving of notice (whether such
notice is required under Section 7.1, or under some other provision of this
Agreement, or otherwise) or lapse of time, or both, would constitute an Event
of Default.

     “Defaulting Bank”: At any time, any Bank that, at such time (a) has
failed to make a Revolving Loan or its Term Loan or its Term Loan (Foreign
Currency) or any Advances thereunder required pursuant to the terms of this
Agreement, including the funding of any participation in accordance with the
terms of this Agreement, (b) has failed to pay to the Agent or any Bank an
amount owed by such Bank pursuant to the terms of this Agreement, or (c) has
been deemed insolvent or has become subject to a bankruptcy, receivership or
insolvency proceeding, or to a receiver, trustee or similar official.

     “Disposition”: (a) the sale, lease, conveyance or other disposition of
Property, other than sales or other dispositions expressly permitted under
Section 6.2 (other than subsections 6.2(a)(ii) and 6.2(b)), and (b) the sale or
transfer by a Borrower or any Subsidiary of any Equity Interests issued by any
Subsidiary and held by such transferor Person, except as expressly permitted
under Section 6.2.

6

 

     “Dollar Amount”: Any currency at any date shall mean (i) the amount of
such currency if such currency is U.S. Dollars or (ii) the Equivalent Amount
thereof if such currency is any currency other than U.S. Dollars. Unless
otherwise expressly provided, all references herein to the “Dollar Amount” of
any Foreign Currency Advance shall mean the Dollar Amount of the outstanding
principal amount of such Foreign Currency Advance.

     “Domestic Subsidiary”: Any Subsidiary that is not a Foreign Subsidiary.

     “Dormant Subsidiary”: Any Subsidiary listed in Schedule 1.1(a) hereto.

     “Earn-outs”: All obligations incurred in connection with any Permitted
Acquisition under deferred purchase arrangements including any such
arrangements, non-compete agreements, consulting agreements, purchase
agreements and earn-out agreements, in each case excluding obligations upon any
interest-bearing indebtedness incurred or assumed in connection with such
Permitted Acquisition.

     “EBITDA”: For any period of determination, the consolidated net income of
the Borrowers and their Subsidiaries plus (i) income taxes, (ii) Interest
Expense, (iii) depreciation and amortization and (iv) unusual or non-recurring
non-cash charges, non-cash fees and non-cash expenses, (v) costs, fees, charges
and expenses incurred in connection with the Merger, and (vi) management fees,
consulting fees, advisory fees or similar fees to HCI Partners LLC or any of
its Affiliates, plus, in each case, to the extent approved by the Required
Banks: (vii) proceeds from business interruption insurance, (viii) payments
upon Earn-outs (provided that such addition is consistent with GAAP), (ix)
reasonable costs, fees, expenses, charges and any one time payments made
related to any Permitted Acquisition, Investments, issuance of Equity
Interests, recapitalization, Disposition or Indebtedness, in each case as may
be permitted by this Agreement, (x) one time compensation charges, including,
without limitation, stay bonuses paid to existing management and severance
costs, (xi) expenses and charges which will be indemnified or reimbursed, and
(xii) all other non-cash charges; provided, that EBITDA shall be calculated
after giving effect on a pro forma basis to any Permitted Acquisition as if
such Permitted Acquisition occurred on the first day of the applicable period,
in each case as determined on a consolidated basis for the Company and to
Subsidiaries in accordance with GAAP. In addition, to the extent consistent
with GAAP, net income shall be calculated without giving effect to (A) any
write-off of financing cost incurred as a result of the refinancing of
Indebtedness existing immediately prior to the Closing Date, (B) purchase
accounting or similar adjustments required or permitted by GAAP, in connection
with the Merger and any Permitted Acquisition, (C) any gain or loss recognized
in determining consolidated net income (or net loss) for such period in respect
of pension and other post-retirement benefits permitted by this Agreement, (D)
any gain or loss recognized in determining consolidated net income (or loss)
for such period in respect of pension assets, (E) extraordinary gains or
losses, (F) gains or losses from asset dispositions permitted by this Agreement
or (G) gains or losses from discontinued operations, or (H) gains or losses
with respect to foreign exchange and/or interest rate protection adjustments
reflected in the income statement of the Company. For the three fiscal
quarters ending on the following dates, EBITDA shall be deemed to be the
respective amounts indicated: December 31, 2003 — $9,461,000; March 31, 2004
— $10,013,000; and June 30, 2004 — $12,331,000.

7

 

     “EBITDAR”: For any period of determination, EBITDA for such period, plus
Rental Obligations for such period.

     “Environmental Claims”: all claims, however asserted, by any Governmental
Authority or other Person alleging potential liability or responsibility for
violation of any Environmental Law, or for release or injury to the environment
or threat to public health, personal injury (including sickness, disease or
death), property damage, natural resources damage, or otherwise alleging
liability or responsibility for damages (punitive or otherwise), cleanup,
removal, remedial or response costs, restitution, civil or criminal penalties,
injunctive relief, or other type of relief, resulting from or based upon the
presence, placement, discharge, emission or release (including intentional and
unintentional, negligent and non-negligent, sudden or non-sudden, accidental or
non-accidental, placement, spills, leaks, discharges, emissions or releases) of
any Hazardous Material at, in, or from Property, whether or not owned by the
Borrower.

     “Environmental Law”: All foreign, federal, state or local laws, statutes,
common law duties, rules, regulations, ordinances and codes, together with all
administrative orders, directed duties, licenses, authorizations and permits
of, and agreements with, any Governmental Authorities, in each case relating to
protection of the environment or health, safety or land use matters; including,
without limitation, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, the Clean Air Act, the Federal Water Pollution Control
Act of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation
and Recovery Act, the Toxic Substances Control Act, the Emergency Planning and
Community Right-to-Know Act.

     “Equity Interests”: All shares, interests, participation or other
equivalents, however designated, of or in a corporation or a limited liability
company, whether or not voting, including but not limited to common stock,
member interests, warrants, preferred stock, convertible debentures, and all
agreements, instruments and documents convertible, in whole or in part, into
any one or more or all of the foregoing.

     “Equivalent Amount”: Any currency at any date shall mean the equivalent
in U.S. Dollars of such currency, calculated on the basis of the arithmetic
mean of the buy and sell spot rates of exchange of the Agent or the applicable
Foreign Currency Funding Agent, as the case may be, or an Affiliate of the
Agent or such Foreign Currency Funding Agent, in the London interbank market
(or other market where the Agent’s or such Foreign Currency Funding Agent’s, as
applicable, foreign exchange operations in respect of such currency are then
being conducted) for such other currency at or about 11:00 A.M. (local time
applicable to the transaction in question) on the date on which such amount is
to be determined, rounded up to the nearest amount of such currency as
determined by the Agent or such Foreign Currency Funding Agent, as applicable,
from time to time; provided, however, that if at the time of any such
determination, for any reason, no such spot rate is being quoted, the Agent or
the applicable Foreign Currency Funding Agent, as the case may be, or an
Affiliate of the Agent or such Foreign Currency Funding Agent, may use any
reasonable method it deems appropriate (after consultation with the Company) to
determine such amount, and such determination shall be conclusive absent
manifest error.

     “ERISA”: The Employee Retirement Income Security Act of 1974, as amended.

8

 

     “ERISA Affiliate”: Any trade or business (whether or not incorporated)
that is a member of a group of which a Borrower is a member and which is
treated as a single employer under Section 414 of the Code.

     “ERISA Event”: (a) a Reportable Event with respect to a Qualified Plan or
a Multiemployer Plan; (b) a withdrawal by the Company or any ERISA Affiliate
from a Qualified Plan subject to Section 4063 of ERISA during a plan year in
which it was a substantial employer (as defined in Section 4001(a)(2) of
ERISA); (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan; (d) the filing of a notice of intent to
terminate, the treatment of a plan amendment as a termination under Section
4041 or 4041A of ERISA or the commencement of proceedings by the PBGC to
terminate a Qualified Plan or Multiemployer Plan subject to Title IV of ERISA;
(e) a failure by the Company or any member of the Controlled Group to make
required contributions to a Qualified Plan or Multiemployer Plan; (f) an event
or condition which might reasonably be expected to constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee
to administer, any Qualified Plan or Multiemployer Plan; (g) the imposition of
any liability under Title IV of ERISA, other than PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon the Company or any ERISA
Affiliate; (h) an application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code with respect to any
Plan; (i) a non-exempt prohibited transaction occurs with respect to any Plan
for which the Company or any Subsidiary of the Company may be directly or
indirectly liable; or (j) a violation of the applicable requirements of Section
404 or 405 of ERISA or the exclusive benefit rule under Section 401(a) of the
Code by any fiduciary or disqualified person with respect to any Plan for which
the Borrower or any member of the Controlled Group may be directly or
indirectly liable.

     “Eurocurrency Applicable Reference Page”: Any generally-published
reference on interest rates applicable to Dollars and Foreign Currencies from
time to time selected by the Agent (or, as to the Foreign Currency Advances,
the Foreign Currency Funding Agent), in its sole discretion, which may include
(a) the Reuters Screen LIBO Page, (b) Page 1700 and following pages on the
Knight-Ridder MoneyCenter Service, or (c) Telerate Page 3750, or other
applicable pages setting forth rates of interest on the Dow Jones Telerate
Service (or in any case, such other pages as may replace the pages on such
services for the purpose of displaying London interbank offered rates of major
banks for Dollar, or if applicable, Foreign Currency, deposits). “Telerate
page 3750” means the display designated as such on the Telerate reporting
system operated by Telerate System Incorporated (or such other page as may
replace page 3750 for the purpose of displaying London interbank offered rates
of major banks for United States dollar deposits).

     “Eurocurrency Business Day”: A Business Day which is also a day for
trading by and between banks in United States dollar deposits in the interbank
Eurocurrency market and a day on which banks are open for business in New York
City and Minneapolis, Minnesota, and as to determinations made with respect to
Foreign Currency Advances, in London, England.

     “Eurocurrency Rate”: With respect to each Interest Period applicable to a
Eurocurrency Rate Advance, the average offered rate for deposits in United
States dollars (rounded upward, if necessary, to the nearest 1/16 of 1%) for
delivery of such deposits on the first day of such Interest Period, for the
number of days in such Interest Period, which appears on Eurocurrency

9

 

Applicable Reference Page as of 11:00 AM, London time (or such other time
as of which such rate appears) two Eurocurrency Business Days prior to the
first day of such Interest Period, or the rate for such deposits determined by
the Agent (or, as to Foreign Currency Advances, the Foreign Currency Funding
Agent) at such time based on such other published service of general
application as shall be selected by such Agent for such purpose; provided, that
in lieu of determining the rate in the foregoing manner, the relevant Agent may
determine the rate based on rates at which United States dollar deposits are
offered to the relevant Agent in the interbank Eurocurrency market at such time
for delivery in Immediately Available Funds on the first day of such Interest
Period in an amount approximately equal to the Loan to which such Interest
Period is to apply (rounded upward, if necessary, to the nearest 1/16 of 1%).

     “Eurocurrency Rate Advance”: An Advance with respect to which the
interest rate is determined by reference to the Adjusted Eurocurrency Rate.

     “Eurocurrency Reserve Percentage”: As of any day, that percentage
(expressed as a decimal) which is in effect on such day, as prescribed by the
Board for determining the maximum reserve requirement (including any basic,
supplemental or emergency reserves) for a member bank of the Federal Reserve
System, with deposits comparable in amount to those held by the Agent, in
respect of “Eurocurrency Liabilities” as such term is defined in Regulation D
of the Board or in respect of any other category of liabilities that includes
deposits by reference to which the interest rate on Eurocurrency Rate Advances
is determined or any category of extensions of credit or other assets that
include loans by non-United States offices of any Bank to United States
residents. The rate of interest applicable to any outstanding Eurocurrency Rate
Advances shall be adjusted automatically on and as of the effective date of any
change in the Eurocurrency Reserve Percentage.

     “Event of Default”: Any event described in Section 7.1.

     “Event of Loss”: With respect to any Property, any of the following: (a)
any loss, destruction or damage of such Property or (b) any actual
condemnation, seizure or taking, by exercise of the power of eminent domain or
otherwise, of such Property, or confiscation of such Property or the
requisition of the use of such Property.

     “Excess Cash Flow”: For any period of determination, the sum (determined
without duplication) of (a) EBITDA for such period, minus (b) income taxes and
Interest Expense paid (to the extent such taxes and Interest Expense are paid
in cash), minus (c) all scheduled principal payments made in respect of
Indebtedness during such period (excluding mandatory prepayments upon the Loans
made with Excess Cash Flow), minus (d) all Capital Expenditures made during
such period (to the extent not financed with Indebtedness permitted hereunder
(other than with the proceeds of Revolving Loans)), minus (e) all payments
permitted to be made pursuant to Section 6.11, minus, (f) all Investments made
in cash to the extent permitted hereunder, minus (g) amounts added to net
income in calculating EBITDA pursuant to clauses (v), (vi), (vii), (viii), (ix)
and (x) of the first sentence of the definition of EBITDA contained in this
Agreement, plus (h) amounts excluded from net income in calculating EBITDA
pursuant to clauses (B), (C), (D), (E), (F), (G) and (H) of the second sentence
of the definition of EBITDA contained in this Agreement, plus or minus (i) the
net change in working capital (excluding changes in cash balances, changes in
short term indebtedness and changes in deferred taxes) of

10

 

the Company and its Subsidiaries during such period, minus (j) all
optional prepayments made on Indebtedness existing on the date hereof (other
than the Obligations).

     “Excluded Issuances”: The sale or issuance of debt securities by the
Borrowers (a) to any Person who holds an Equity Interest in any Borrower as of
the Closing Date in an aggregate amount not to exceed $1,000,000 in any fiscal
year, (b) to members of the management of any Borrower or any of its
Subsidiaries in the Ordinary Course of Business and (c) the proceeds of which
will be used to make (i) Capital Expenditures in the Ordinary Course of
Business to the extent such expenditures are otherwise permitted pursuant to
the terms of this Agreement and (ii) Investments of the type expressly
permitted hereunder; provided, that any such debt securities issued by any
Borrower shall constitute Subordinated Indebtedness hereunder, are unsecured
and subordinated in a manner acceptable to the Agent and the Required Banks and
contain other terms and conditions acceptable to the Agent and the Required
Banks.

     “Excluded Subsidiaries”: Any Subsidiary (other than a Foreign Currency
Borrower) that either (a) is a Dormant Subsidiary or (b) is an immaterial
Foreign Subsidiary.

     “Existing Letters of Credit”: The letters of credit outstanding on the
Closing Date and issued by Comerica Bank for the account of the Company or a
Subsidiary and specified on Exhibit 1.1D.

     “Federal Funds Rate”: For any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the
rates on overnight Federal funds transactions, with members of the Federal
Reserve System arranged by Federal funds brokers, as published for such day
(or, if such day is not a Business Day, for the next preceding Business Day) by
the Federal Reserve Bank of New York, or, if such rate is not so published for
any day that is a Business Day, the average of the quotations for such day on
such transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.

     “Fee Letter”: That certain letter dated the date of this Agreement
between the Borrowers’ Agent and the Agent concerning certain fees payable to
the Agent and the Syndication Agent.

     “Fixed Charge Coverage Ratio”: For any period of determination, the ratio
of (i) EBITDAR, minus Capital Expenditures of the Company and its Subsidiaries,
minus taxes paid in cash by the Company and its Subsidiaries, minus Cash
Dividends, minus Management Fees paid in cash to (ii) the sum of Fixed Charges.

     “Fixed Charges”: With respect to the Company and its Subsidiaries on a
consolidated basis, for any period of determination, (a) Consolidated Cash
Interest Expense, (b) Rental Obligations, (c) regularly scheduled amortization
payments made by the Company and its Subsidiaries in respect of principal on
the Obligations, and (d) obligations upon Earn-outs that are paid in cash.

     “Foreign Currency”: United Kingdom Pounds Sterling.

     “Foreign Currency Addendum”: An addendum to this Agreement in the form as
shall be approved by the Foreign Currency Funding Agent and the Agent and the
Banks.

11

 

     “Foreign Currency Advance”: The Term Loans (Foreign Currency) and any
portion of the outstanding Revolving Loans that is made in the Foreign
Currency. A Foreign Currency Advance may be at a Eurocurrency Rate Advance or
a Prime Rate Advance.

     “Foreign Currency Bank”: With respect to Foreign Currency Advances for
Revolving Loans, initially U.S. Bank National Association and thereafter any
Bank that is a party to an applicable Foreign Currency Addendum. With respect
to Term Loans (Foreign Currency), initially U.S. Bank National Association and
thereafter any Bank that is party to an applicable Foreign Currency Addendum.

     “Foreign Currency Borrowers”: Each of the Company’s Foreign Subsidiaries
that are listed on the signature pages of this Agreement.

     “Foreign Currency Sublimit”: U.K. Pounds Sterling £15,000,000.

     “Foreign Subsidiary”: Any Subsidiary that is organized under the laws of
a jurisdiction not in the United States of America or any Subsidiary of a
Person that is organized in such a jurisdiction.

     “Funded Indebtedness”: For any Person, the indebtedness of such Person
specified in clauses (a) and (d) of the definition of “Indebtedness” as well as
other interest-bearing Indebtedness.

     “GAAP”: Generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of any date of
determination.

     “Governmental Authority”: Any nation or government, any state or other
political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to
government, and any corporation or other entity owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing.

     “Guaranty Obligation”: As defined in the definition of “Contingent
Obligation”.

     “Hazardous Materials”: All those substances which are regulated by, or
which may form the basis of liability under, any Environmental Law.

     “Holding Account”: A deposit account belonging to the Agent for the
benefit of the Banks into which the Borrowers may be required to make deposits
pursuant to the provisions of this Agreement, such account to be under the sole
dominion and control of the Agent and not subject to withdrawal by the
Borrowers, with any amounts therein to be held for application toward payment
of any outstanding Letters of Credit when drawn upon or applied as specified in
Section 2.7(b), as the case may be.

12

 

     “Immediately Available Funds”: Funds with good value on the day and in
the city in which payment is received.

     “Indebtedness”: For any Person, without duplication, (a) all indebtedness
for borrowed money; (b) all obligations issued, undertaken or assumed as the
deferred purchase price of property or services (other than trade payables and
accrued expenses entered into or incurred in the ordinary course of business);
(c) all Contingent Obligations with respect to Surety Instruments; (d) all
obligations evidenced by notes, bonds, debentures or similar instruments,
including obligations so evidenced incurred in connection with the acquisition
of property, assets or businesses; (e) all indebtedness created or arising
under any conditional sale or other title retention agreement, or incurred as
financing, in either case with respect to property acquired by the Person (even
though the rights and remedies of the seller or bank under such agreement in
the event of default are limited to repossession or sale of such property); (f)
all principal and interest obligations (classified as a liability on such
Person’s balance sheet) with respect to Capitalized Leases; (g) the principal
balance outstanding under any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product to which
such Person is a party, where such transaction is considered borrowed money
indebtedness for tax purposes but is classified as an operating lease in
accordance with GAAP; (h) all indebtedness referred to in clauses (a) through
(g) above secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien upon or in
property (including accounts and contract rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of such
Indebtedness; and (i) all Guaranty Obligations in respect of indebtedness or
obligations of others of the kinds referred to in clauses (a) through (h)
above; provided, that (1) Indebtedness shall not include Earn-outs or
Obligations payable in the Ordinary Course of Business with respect to
preferred equity, employee consulting arrangements, deferred rent, deferred
taxes, employment agreements and deferred compensation and (2) the amount of
Indebtedness which is non-recourse to the obligor thereunder or to such Person
or for which recourse is limited to an identified asset shall be equal to the
lesser of (A) the limited amount of such obligation and (B) the fair market
value of such asset. For all purposes of this Agreement, the Indebtedness of
any Person shall include all recourse Indebtedness then outstanding of any
partnership or joint venture or limited liability company in which such Person
is a general partner or a joint venturer or a member and as to which such
Person is or may become directly liable.

     “Indemnitee”: As defined in Section 9.12.

     “Insolvency Proceeding”: (a) any case, action or proceeding before any
court or other Governmental Authority relating to bankruptcy, reorganization,
insolvency, liquidation, receivership, dissolution, winding-up or relief of
debtors, or (b) any general assignment for the benefit of creditors,
composition, marshaling of assets for creditors, or other, similar arrangement
in respect of its creditors generally or any substantial portion of its
creditors; in each case in (a) and (b) above, undertaken under U.S. Federal,
state or foreign law, including the Bankruptcy Code.

     “Interest Coverage Ratio”: For any period of determination, the ratio of
(a) EBITDA, to (b) Consolidated Cash Interest Expense.

13

 

     “Interest Expense”: For any period of determination, the aggregate
consolidated amount, without duplication, of interest paid, accrued or
scheduled to be paid in respect of any Indebtedness of Borrowers, including (a)
all but the principal component of payments in respect of conditional sale
contracts, Capitalized Leases and other title retention agreements, (b)
commissions, discounts and other fees and charges with respect to letters of
credit and bankers’ acceptance financings and (c) net costs under Rate
Contracts, in each case determined in accordance with GAAP.

     “Interest Period”: With respect to each Eurocurrency Rate Advance, the
period commencing on the date thereof or on the last day of the immediately
preceding Interest Period, if any, applicable to an outstanding Eurocurrency
Rate Advance and ending one, two, three or six months thereafter, as the
Borrowers may elect in the applicable notice of borrowing, continuation or
conversion; provided that with respect to each Eurocurrency Rate Advance:

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

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

     (3) Any Interest Period applicable to an Advance on a Revolving Loan
that would otherwise end after the Termination Date shall end on the
Termination Date, and any Interest Period applicable to an Advance on a
Term Loan or its Term Loan (Foreign Currency) that would otherwise end
after the scheduled maturity of such Term Loan or Term Loan (Foreign
Currency) shall end on such maturity.

     “Inventory”: All of the “inventory” (as such term is defined in the UCC)
of the Borrower, including, but not limited to, all merchandise, raw materials,
parts, supplies, work-in-process and finished goods intended for sale, together
with all the containers, packing, packaging, shipping and similar materials
related thereto, and including such inventory as is temporarily out of the
Borrower’s custody or possession, including inventory on the premises of others
and items in transit.

     “Investment”: As defined in Section 6.4.

     “IPO”: The initial public offering of the Company pursuant to the
registration statement provided to the Agent.

     “Letter of Credit”: An irrevocable letter of credit issued by a Letter of
Credit Bank pursuant to this Agreement for the account of a Borrower, including
the Existing Letters of Credit.

14

 

     “Letter of Credit Bank”: (a) U.S. Bank National Association, (b) as to
the Existing Letters of Credit, Comerica Bank and/or (c) from time to time, a
Bank approved by the Borrowers and the Agent that issues Letters of Credit, in
its capacity as such issuer.

     “Letter of Credit Fee”: As defined in Section 2.15(c).

     “Lien”: With respect to any Person, any security interest, mortgage,
pledge, lien, charge, encumbrance, title retention agreement or analogous
instrument or device (including the interest of each lessor under any
Capitalized Lease), in, of or on any assets or properties of such Person, now
owned or hereafter acquired, whether arising by agreement or operation of law.

     “Loan”: A Revolving Loan or a Term Loan or a Term Loan (Foreign Currency)
or a Swingline Loan.

     “Loan Documents”: This Agreement, the Notes and the Security Documents.

     “Management Agreement”: That certain management agreement to be entered
into between the Company and HCI Partners, LLC or an Affiliate thereof.

     “Management Fees”: Payments of management fees made to HCI Partners, LLC
or its Affiliates or any of their successors.

     “Margin Stock”: As such term is defined in Regulation T, U or X of the
Board.

     “Material Adverse Effect”: (a) a material adverse change in, or a
material adverse effect upon, the operations, business, Properties or financial
condition of the Company and its Subsidiaries taken as a whole; (b) a material
impairment of the ability of a Borrower or any of their material Subsidiaries
to perform in any material respect its obligations under any Loan Document; or
(c) a material adverse effect upon (i) the legality, validity, binding effect
or enforceability of any Loan Document, or (ii) the perfection or priority of
any material Lien granted to the Banks or to the Agent for the benefit of the
Banks under any of the Security Documents.

     “Maximum Rate”: As defined in Section 9.19.

     “Merger”: The merger of Trim Merger Co. with and into Trim Systems, Inc.
and the exchange of shares of common stock of Bostrom Holding, Inc. for the
outstanding shares of Trim Systems, Inc. pursuant to that certain Agreement and
Plan of Merger dated as of May 20, 2004.

     “Money Markets”: At any time, one or more wholesale funding markets
selected by the Agent in its sole discretion, including markets for the funding
of negotiable certificates of deposit, commercial paper, Eurocurrency deposits,
bank notes, federal funds, interest rate swaps and others.

     “Multiemployer Plan”: A multiemployer plan, as such term is defined in
Section 4001 (a) (3) of ERISA, which is maintained (on the Closing Date, within
the five years preceding the

15

 

Closing Date, or at any time after the Closing Date) for employees of a
Borrower or any ERISA Affiliate.

     “Net Issuance Proceeds”: In respect of any issuance of debt securities,
cash proceeds and non-cash proceeds received or receivable in connection
therewith, net of underwriting discounts and reasonable out-of-pocket costs
and expenses paid or incurred in connection therewith in favor of any Person
not an Affiliate of the Borrower, or if an Affiliate of the Borrower then
provided only that such costs and expenses are reasonable and are incurred on
an arm’s length basis.

     “Net Proceeds”: Proceeds in cash, checks or other cash equivalent
financial instruments (including Cash Equivalents) as and when received by the
Person making a Disposition and insurance proceeds received on account of an
Event of Loss, net of: (a) in the event of a Disposition (i) the direct costs
relating to such Disposition, excluding direct costs payable to the Borrower or
any Affiliate of the Borrower (but specifically including direct costs payable
to an Affiliate or a Subsidiary of the Borrower to the extent payable pursuant
to the Management Agreement or upon fair and reasonable terms no more favorable
to such Affiliate or such Subsidiary of the Borrower, as the case may be, than
would be obtained in a comparable arm’s-length transaction with a Person not an
Affiliate of such Affiliate or such Subsidiary, as the case may be), (ii) sale,
use or other transaction taxes paid or payable as a result thereof, (iii)
amounts required to be applied to repay principal, interest and prepayment
premiums and penalties on Indebtedness secured by a Lien on the asset which is
the subject of such Disposition and (iv) any customary and reasonable reserves
established in connection with such Disposition and (b) in the event of an
Event of Loss, (i) all money actually applied to repair or reconstruct the
damaged Property or Property affected by the condemnation or taking, (ii) all
of the costs and expenses reasonably incurred in connection with the collection
of such proceeds, award or other payments, and (iii) any amounts retained by or
paid to parties having superior rights to such proceeds, awards or other
payments.

     “Note”: A Term Note or a Revolving Note or the Swingline Note or a Term
Note (Foreign Currency).

     “Obligations”: The Borrowers’ obligations in respect of the due and
punctual payment of principal and interest on the Notes and Unpaid Drawings
when and as due, whether by acceleration or otherwise and all fees (including
Revolving Commitment Fees), expenses, indemnities, reimbursements and other
obligations of the Borrowers under this Agreement or any other Borrower Loan
Document and Rate Protection Obligations, in all cases whether now existing or
hereafter arising or incurred.

     “Ordinary Course of Business”: In respect of any transaction involving a
Borrower or any Subsidiary of a Borrower, the ordinary course of such Person’s
business, as conducted by any such Person in accordance with past practice and
undertaken by such Person in good faith and not for purposes of evading any
covenant or restriction in any Loan Document.

     “Organization Documents”: (a) for any corporation, the certificate or
articles of incorporation, the bylaws, any certificate of determination or
instrument relating to the rights of preferred shareholders of such
corporation, any shareholder rights agreement, and all applicable

16

 

resolutions of the board of directors (or any committee thereof) of such
corporation, (b) for any partnership, the partnership agreement and, if
applicable, certificate of limited partnership or (c) for any limited liability
company, the operating agreement (or the equivalent) and articles or
certificate of formation.

     “Other Taxes”: As defined in Section 2.26(b).

     “Outstanding Indebtedness”: As defined within the definition of “Total
Leverage Ratio”.

     “Participants”: As defined in Section 9.6(b).

     “PBGC”: The Pension Benefit Guaranty Corporation, established pursuant to
Subtitle A of Title IV of ERISA, and any successor thereto or to the functions
thereof.

     “Permitted Acquisition”: Any acquisition by the Company or any Subsidiary
of stock or assets of Persons conducting businesses similar to those of the
Company or such Subsidiary, as long as (a) the Agent and the Banks have been
notified of such acquisition not less than 15 days in prior to the consummation
thereof and has been provided with such information as the Agent may reasonably
request with respect to the acquired business, (b) both before and after giving
effect to such acquisition, no Default or Event of Default shall have occurred
and be continuing, (c) the Company has demonstrated pro forma compliance with
Sections 6.18, 6.19, 6.20 and 6.21 for the first four fiscal quarters ending
after the closing of such acquisition, and (d) the total consideration paid by
the Company or any Subsidiary in connection with such acquisitions does not
exceed $20,000,000 in the aggregate in any fiscal year of the Company. For
purposes of the foregoing, “total consideration” shall mean, without
duplication, cash or other consideration paid, the fair market value of
property or stock exchanged (or the face amount, if preferred stock), the total
amount of any deferred payments or purchase money debt, all Indebtedness
incurred to the seller, and the total amount of any Indebtedness or other
acquisition-related obligations (including, without limitation, obligations
pursuant to non-compete or consulting arrangements) assumed or undertaken in
such transactions.

     “Permitted Liens”: As defined in Section 6.1.

     “Person”: Any natural person, corporation, partnership, limited
partnership, limited liability company, joint venture, firm, association,
trust, unincorporated organization, government or governmental agency or
political subdivision or any other entity, whether acting in an individual,
fiduciary or other capacity.

     “Plan”: Each employee benefit plan (whether in existence on the Closing
Date or thereafter instituted), as such term is defined in Section 3 of ERISA,
maintained for the benefit of employees, officers or directors of a Borrower or
of any ERISA Affiliate.

     “Primary Obligation”: As defined within the definition of “Contingent
Obligation”.

     “Primary Obligor”: As defined within the definition of “Contingent
Obligation”.

17

 

     “Prime Rate”: The greater of (a) the rate of interest from time to time
publicly announced by the Agent as its “prime rate” and (b) the Federal Funds
Rate plus 0.50% per
annum, or, as to Foreign Currency Advances, the floating rate of interest
for advances of the type of the Foreign Currency Advances maintained by the
Foreign Currency Funding Agent or as may be provided in an applicable Foreign
Currency Addendum. The Agent or the Foreign Currency Funding Agent may lend to
its customers at rates that are at, above or below the relevant Prime Rate.
For purposes of determining any interest rate hereunder or under any other Loan
Document which is based on the Prime Rate, such interest rate shall change as
and when the Prime Rate shall change.

     “Prime Rate Advance”: An Advance with respect to which the interest rate
is determined by reference to the Prime Rate.

     “Prohibited Transaction”: The respective meanings assigned to such term
in Section 4975 of the Code and Section 406 of ERISA.

     “Property”: Any interest in any kind of property or asset, whether real,
personal or mixed, and whether tangible or intangible.

     “Qualified Plan”: A pension plan (as defined in Section 3(2) of ERISA)
intended to be tax-qualified under Section 401(a) of the Code and which any
member of the Controlled Group sponsors, maintains, or to which it makes, is
making or is obligated to make contributions, or in the case of a multiple
employer plan (as described in Section 4064(a) of ERISA) has made contributions
at any time during the immediately preceding period covering at least five (5)
plan years, but excluding any Multiemployer Plan.

     “Rate Contracts”: Swap agreements (as such term is defined in Section 101
of the Bankruptcy Code) and any other agreements or arrangements designed to
provide protection against fluctuations in interest or currency exchange rates
with respect to the Obligations; provided that such agreements that have been
designated as a Rate Contract by the relevant Rate Protection Provider by
written notice to the Agent. The designation of any Rate Contract shall not
create in favor of any Bank or any Rate Protection Provider thereto any rights
in connection with the management or release of any collateral or of the
obligations of any guarantor.

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

     “Rate Protection Obligations”: The net liabilities, indebtedness and
obligations of any Borrower, if any, to any Rate Protection Provider under a
Rate Contract.

     “Rate Protection Provider”: Any Bank, or any Affiliate of any Bank, that
is any Borrower’s counterparty under any Rate Contract.

18

 

     “Regulatory Change”: Any change after the Closing Date in federal, state
or foreign laws or regulations or the adoption or making after such date of any
interpretations, directives or requests applying to a class of banks including
any Bank under any federal, state or foreign laws or regulations (whether or
not having the force of law) by any court or governmental or monetary authority
charged with the interpretation or administration thereof.

     “Related Transactions”: The transactions contemplated by the the IPO and
the Merger.

     “Rental Obligations”: For any period, the aggregate fixed amount payable
by the Company or any of its Subsidiaries under any lease (or other agreement
conveying the right to use) of any real or personal property by the Company or
any of its Subsidiaries, as lessee, other than a Capitalized Lease.

     “Replaced Bank”: As defined in Section 2.25.

     “Replacement Bank”: As defined in Section 2.25.

     “Reportable Event”: A reportable event as defined in Section 4043 of
ERISA and the regulations issued under such Section, with respect to a Plan,
excluding, however, such events as to which the PBGC by regulation has waived
the requirement of Section 4043(a) of ERISA that it be notified within 30 days
of the occurrence of such event, provided that a failure to meet the minimum
funding standard of Section 412 of the Code and of Section 302 of ERISA shall
be a Reportable Event regardless of the issuance of any waiver in accordance
with Section 412(d) of the Code.

     “Required Banks”: So long as the Revolving Commitment remains
outstanding, at any time, Banks, other than Defaulting Banks, holding at least
51% of the sum of the principal amount of the Revolving Commitment plus the
aggregate unpaid principal Dollar Amount of the Term Notes and Term Notes
(Foreign Currency), excluding Notes held by Defaulting Banks or, if the
Revolving Commitment has been terminated, Banks holding 51% of the aggregate
principal amount of the Notes, provided that, if at any date of determination,
there are two or fewer Banks, the “Required Banks” shall constitute 100% of the
Banks other than Defaulting Banks.

     “Requirement of Law”: As to any Person, any law (statutory or common),
treaty, rule or regulation or determination of an arbitrator or of a
Governmental Authority, in each case applicable to or binding upon the Person
or any of its property or to which the Person or any of its property is
subject.

     “Responsible Officer”: The chief executive officer or the president of
the Borrower, or any other officer having substantially the same authority and
responsibility; or, with respect to compliance with financial covenants or
delivery of financial information, the chief financial officer or the treasurer
of the Borrower, or any other officer having substantially the same authority
and responsibility.

     “Restricted Payments”: With respect to any Borrower and its Subsidiaries,
collectively, all dividends or other distributions of any nature with respect
to its own Equity Interests (cash, Equity Interests other than common stock of
such Borrower, assets or otherwise), and all

19

 

payments on any class of Equity Interests (including warrants, options or
rights therefor) issued by such Borrower and its Subsidiaries, whether such
Equity Interests are authorized or outstanding on the Closing Date or at any
time thereafter and any redemption or purchase of, or distribution in respect
of, any of the foregoing, whether directly or indirectly.

     “Revolving Commitment”: With respect to a Bank, the agreement of such
Bank to make Revolving Loans to the Borrowers in an aggregate principal amount
outstanding at any time not to exceed such Bank’s Revolving Commitment Amount
upon the terms and subject to the conditions and limitations of this Agreement.

     “Revolving Commitment Amount”: With respect to a Bank, initially the
amount set opposite such Bank’s name on Schedule 1.1(b) hereof as its Revolving
Commitment Amount, but as the same may be reduced from time to time pursuant to
Section 2.13.

     “Revolving Commitment Fees”: As defined in Section 2.15.

     “Revolving Loan”: As defined in Section 2.1.

     “Revolving Loan Date”: The date of the making of any Revolving Loans
hereunder.

     “Revolving Notes”: The promissory notes of the Company and the Subsidiary
Borrowers substantially in the form of Exhibit 1.1F, evidencing the obligation
of such Borrowers to repay the Revolving Loans, and “Revolving Note” means any
one of such promissory notes issued hereunder without distinction.

     “Revolving Percentage”: With respect to any Bank, the percentage
equivalent of a fraction, the numerator of which is the Revolving Commitment
Amount of such Bank and the denominator of which is the Aggregate Revolving
Commitment Amounts.

     “Security Agreement”: A security agreement from each of the Borrowers to
the Agent, for the benefit of the Banks, granting the Agent a security interest
in, among other things, all business assets of such entity, including all
Accounts, chattel paper, instruments, Inventory, machinery, equipment, fixtures
and any general intangibles now owned or hereafter acquired by such entity, in
the form required by the Agent, in each case as the same may be amended,
restated or otherwise modified from time to time.

     “Security Documents”: The Security Agreements, the Debenture and the
Share Charge.

     “Share Charge”: That certain Share Charge dated concurrently herewith
between the Foreign Currency Borrowers and U.S. Bank National Association as
trustee for the Agent, the Syndication Agent and the Banks, as the same may be
amended, restated or otherwise modified from time to time.

     “Solvent”: As to any Person at any time, that (a) the fair value of the
Property of such Person is greater than the amount of such Person’s liabilities
(including disputed, contingent and unliquidated liabilities) as such value is
established and liabilities evaluated for purposes of Section 101(32)(A) of the
Bankruptcy Code and, in the alternative, for purposes of the Uniform Fraudulent
Transfer Act; (b) the present fair saleable value (on a going concern basis) of
the

20

 

Property of such Person is not less than the amount that will be required
to pay the probable liability of such Person on its debts as they become
absolute and matured; (c) such Person is able to realize upon its Property and
generally pay its debts and other liabilities (including disputed, contingent
and unliquidated liabilities) as they mature in the normal course of business;
(d) such Person does not intend to, and does not believe that it will, incur
debts or liabilities beyond such Person’s ability to generally pay as such
debts and liabilities mature; and (e) such Person is not engaged in business or
a transaction, and is not about to engage in business or a transaction, for
which such Person’s Property would constitute unreasonably small capital.

     “Subordinated Indebtedness”: The Indebtedness of a Borrower or any of its
Subsidiaries which is, upon the creation of such Indebtedness, contractually
subordinated in right of payment to the Obligations in a manner acceptable to
the Required Banks.

     “Subsidiary”: Any corporation or other entity of which Equity Interests
having ordinary voting power for the election of a majority of the board of
directors or other Persons performing similar functions are owned by the
Company either directly or through one or more Subsidiaries.

     “Subsidiary Borrowers”: Each of the Company’s Domestic Subsidiaries that
are listed on the signature pages of this Agreement as well as any other
Domestic Subsidiary wholly-owned by the Company or by a Subsidiary wholly-owned
by the Company that shall have delivered an Assumption Letter to the Agent in
accordance with Section 2.2 together with applicable Notes and such other
documents as the Agent may reasonably require. The initial Subsidiary
Borrowers are: Commercial Vehicle Systems, Inc., National Seating Company,
Trim Systems Operating Corp., Trim Systems, LLC and Tempress, Inc.

     “Surety Bonds”: All bonds issued for the account of the Company or any of
its Subsidiaries to assure the performance thereby (or to the extent issued in
the ordinary course of business, any other Person) under any contract entered
into in the ordinary course of business.

     “Surety Instruments”: All letters of credit (including standby and
commercial) banker’s acceptances, bank guaranties, shipside bonds, performance
bonds, Surety Bonds, remarketing agreements and similar instruments.

     “Swingline Commitment”: The revolving credit facility provided by U.S.
Bank to the Company and the Subsidiary Borrowers described in Section 2.1(c).

     “Swingline Loan”: A loan made by U.S. Bank to the Company or a Subsidiary
Borrower pursuant to Section 2.1(c).

     “Swingline Loan Date”: The date of the making of any Swingline Loan
hereunder.

     “Swingline Note”: The promissory note of the Company and the Subsidiary
Borrowers in favor of U.S. Bank and substantially in the form of Exhibit 1.1G.

     “Syndication Agent”: As defined in the opening paragraph hereof.

     “Taxes”: As defined in Section 2.26(a).

21

 

     “Term Loan”: As defined in Section 2.1.

     “Term Loan Commitment”: With respect to a Bank, the agreement of such
Bank to make a Term Loan to the Borrowers in an amount equal to such Bank’s
Term Loan Commitment Amount upon the terms and subject to the conditions of
this Agreement.

     “Term Loan Commitment Amount”: With respect to a Bank, the amount set
opposite such Bank’s name on Schedule 1.1(b) hereof as its Term Loan Commitment
Amount.

     “Term Loan Percentage”: With respect to any Bank, the percentage
equivalent of a fraction, the numerator of which is the amount of the Term Loan
Commitment of such Bank and the denominator of which is the sum of the Term
Loan Commitments of all the Banks.

     “Term Loan Termination Date”: The earliest of (a) July 31, 2010 and (b)
the date on which all the Obligations become immediately due and payable
pursuant to Section 7.2 hereof.

     “Term Notes”: The promissory notes of a Borrower, substantially in the
form of Exhibit 1.1H, evidencing the obligation of such Borrower to repay the
Term Loans, and “Term Note” means any one of such promissory notes issued
hereunder without distinction.

     “Term Loan (Foreign Currency)”: As defined in Section 2.1.

     “Term Loan Commitment (Foreign Currency)”: With respect to a Bank, the
agreement of such Bank to make a Term Loan (Foreign Currency) to the Borrowers
in an amount equal to such Bank’s Term Loan Commitment Amount (Foreign
Currency) upon the terms and subject to the conditions of this Agreement.

     “Term Loan Commitment Amount (Foreign Currency)”: With respect to a Bank,
the amount set opposite such Bank’s name on Schedule 1.1(b) hereof as its Term
Loan Commitment Amount (Foreign Currency).

     “Term Loan Percentage (Foreign Currency)”: With respect to any Bank, the
percentage equivalent of a fraction, the numerator of which is the amount of
the Term Loan Commitment (Foreign Currency) of such Bank and the denominator of
which is the sum of the Term Loan Commitments (Foreign Currency) of all the
Banks.

     “Term Notes (Foreign Currency)”: The promissory notes of a Borrower,
substantially in the form of Exhibit 1.11, evidencing the obligation of such
Borrower to repay the Term Loans (Foreign Currency), and “Term Note (Foreign
Currency)” means any one of such promissory notes issued hereunder without
distinction.

     “Termination Date”: The earliest of (a) July 31, 2009, (b) the date on
which the Revolving Commitments are terminated pursuant to Section 7.2 hereof
or (c) the date on which the Revolving Commitment Amounts are reduced to zero
pursuant to Section 2.13 hereof.

     “Total Leverage Ratio”: As of any date of determination, the ratio of (a)
without duplication, all Funded Indebtedness of the Borrowers and their
Subsidiaries determined on a

22

 

consolidated basis as of such date (the “Outstanding Indebtedness”), to
(b) EBITDA for the period of four fiscal quarters ending on such date.

     “Total Liabilities”: At the time of any determination, the amount, on a
consolidated basis, of all items of Indebtedness of the Borrowers and their
Subsidiaries that would constitute “liabilities” for balance sheet purposes in
accordance with GAAP.

     “Total Percentage”: With respect to any Bank, the percentage equivalent
of a fraction, the numerator of which is the sum of the Revolving Commitment
Amount of such Bank, the Term Loan Commitment Amount of such Bank and the
Dollar Amount of the Term Loan Commitment Amount (Foreign Currency) of such
Bank and the denominator of which is the sum of the Revolving Commitment
Amounts and Term Loan Commitment Amounts and Dollar Amount of the Term Loan
Commitment Amounts (Foreign Currency) of all the Banks.

     “Total Revolving Outstandings”: As of any date of determination, the
Dollar Amount of (a) the aggregate unpaid principal balance of Revolving Loans
and Swingline Loans outstanding on such date, plus (b) the aggregate maximum
amount available to be drawn under Letters of Credit outstanding on such date,
plus (c) the aggregate amount of Unpaid Drawings on such date.

     “Total Revolving Outstandings (Foreign Currency)”: As of any date of
determination, (a) the aggregate unpaid principal balance of the Revolving
Loans denominated in Foreign Currency, plus (b) the aggregate maximum amount
available to be drawn under Letters of Credit denominated in Foreign Currency
on such date, plus (c) the aggregate amount of Unpaid Draws denominated in
Foreign Currency on such date.

     “UCC”: Uniform Commercial Code of New York.

     “U.K. Pounds Sterling”: The lawful currency of the United Kingdom.

     “UK Restructuring Transaction”: A transaction whereby a new Subsidiary
will be organized which shall (i) be wholly-owned by CVS Holdings, Ltd. and
(ii) shall own all of the Equity Interests in Commercial Vehicle Systems
Limited.

     “Unfunded Pension Liabilities”: The excess of a Plan’s benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that
Plan’s assets, determined in accordance with the assumptions used by the Plan’s
actuaries for funding the Plan pursuant to section 412 for the applicable plan
year.

     “Unpaid Drawing”: As defined in Section 2.12.

     “Unused Revolving Commitment”: With respect to any Bank as of any date of
determination, the amount by which such Bank’s Revolving Commitment Amount
exceeds such Bank’s Revolving Percentage of the Total Revolving Outstandings on
such date.

     “USBNA”: U.S. Bank National Association in its capacity as one of the
Banks hereunder.

     “U.S. Dollars”: The lawful currency of the United States of America

23

 

     “U.S. Taxes”: As defined in Section 2.26(f).

     “Wholly-Owned Subsidiary”: Any Subsidiary in which (other than directors’
qualifying shares required by law) one hundred percent (100%) of Equity
Interests, at the time of any determination, is owned, beneficially and of
record, by the Company or one or more of the Company’s Wholly-Owned
Subsidiaries.

     “Withdrawal Liabilities”: As of any determination date, the aggregate
amount of the liabilities, if any, pursuant to Section 4201 of ERISA if the
Controlled Group made a complete withdrawal from all Multiemployer Plans and
any increase in contributions pursuant to Section 4243 of ERISA.

     Section 1.2 Accounting Terms and Calculations. Except as may be expressly
provided to the contrary herein, all accounting terms used herein shall be
interpreted and all accounting determinations hereunder shall be made in
accordance with GAAP. To the extent any change in GAAP affects any computation
or determination required to be made pursuant to this Agreement, such
computation or determination shall be made as if such change in GAAP had not
occurred unless the Borrowers and Required Banks agree in writing on an
adjustment to such computation or determination to account for such change in
GAAP.

     Section 1.3 Computation of Time Periods. In this Agreement, in the
computation of a period of time from a specified date to a later specified
date, unless otherwise stated the word “from” means “from and including” and
the word “to” or “until” each means “to but excluding”.

     Section 1.4 Other Definitional Terms. The words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this
Agreement. References to Sections, Exhibits, schedules and like references are
to this Agreement unless otherwise expressly provided. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase
“without limitation.” Unless the context in which used herein otherwise
clearly requires, “or” has the inclusive meaning represented by the phrase
“and/or.” All incorporation by reference of covenants, terms, definitions or
other provisions from other agreements are incorporated into this Agreement as
if such provisions were fully set forth herein, and such incorporation shall
include all necessary definitions and related provisions from such other
agreements but including only amendments thereto agreed to by the Required
Banks, and shall survive any termination of such other agreements until the
obligations of the Borrowers under this Agreement and the Notes are irrevocably
paid in full, all Letters of Credit have expired without renewal or been
returned to the Letter of Credit Bank, and the commitments of any Bank to
advance funds to any Borrower are terminated.

24

 

ARTICLE II

TERMS OF THE CREDIT FACILITIES

Part A — Terms of Lending

     Section 2.1 Lending Commitments. On the terms and subject to the
conditions hereof, each Bank severally agrees to (or, as to Swingline Loans,
U.S. Bank agrees to) make the following lending facilities available to the
Borrowers:

     (a) Revolving Credit. A revolving credit facility available as
loans (each, a “Revolving Loan” and, collectively, the “Revolving Loans”)
to the Borrowers on a revolving basis at any time and from time to time
from the Closing Date to the Termination Date, during which period the
Borrowers may borrow, repay and reborrow in accordance with the
provisions hereof, provided, the unpaid principal amount of outstanding
Revolving Loans and Swingline Loans of a Bank shall not at any time
exceed the Revolving Commitment Amount of such Bank; and provided,
further, that no Revolving Loan nor and any Swing-Line Loan will be made
in any amount which, after giving effect thereto, would cause the Total
Revolving Outstandings to exceed lesser of (i) the Aggregate Revolving
Commitment Amounts, or (ii) the Borrowing Base. Revolving Loans
hereunder shall be made by the several Banks ratably in the proportion of
their respective Revolving Commitment Amounts. The Revolving Loans may
be obtained and maintained, at the election of the Borrowers’ Agent but
subject to the limitations hereof, as Prime Rate Advances or Eurocurrency
Rate Advances or Foreign Currency Advances or any combination thereof.
Notwithstanding anything to the contrary, (a) the Borrowers shall ensure
that the aggregate amount of initial Revolving Loans made on the Closing
Date shall not exceed $15,000,000 and (b) unless and until a Foreign
Currency Addendum becomes effective, no Revolving Loans shall be made as
Foreign Currency Advances (except for any Revolving Loans constituting
Foreign Currency Advances that are requested to be made as such on the
Closing Date). The aggregate outstanding amount of Foreign Currency
Advances for Revolving Loans shall in no case exceed the Foreign Currency
Sublimit. Except as otherwise set forth in a Foreign Currency Addendum,
there shall be no more than five Foreign Currency Advances for Revolving
Loans outstanding at any time.

     (b) Term Loans. A term loan from each Bank (each being a “Term
Loan” and, collectively, the “Term Loans”) to the Company and the
Subsidiary Borrowers on the Closing Date in an amount from each Bank
equal to its Term Loan Commitment Amount. The Term Loans and any portion
of the balance thereof (in minimum amounts of $3,000,000.00, or, if more,
in integral multiples of $1,000,000) may be made, maintained, continued
and converted to Prime Rate Advances or Eurocurrency Rate Advances as the
Borrowers’ Agent may elect in its notice of borrowing, continuation or
conversion but subject to the limitations hereof. Term Loans shall not
be made or maintained as Foreign Currency Advances.

25

 

     (c) Term Loans (Foreign Currency). A term loan from each Bank (each
being a “Term Loan (Foreign Currency)” and, collectively, the “Term Loans
(Foreign Currency)”) to the Borrowers on the Closing Date in an amount from
each Bank equal to its Term Loan Commitment Amount (Foreign Currency).
The Term Loans (Foreign Currency) and any portion of the balance thereof
(in minimum amounts of £1,500,000.00) may be made, maintained, continued
and converted to Prime Rate Advances or Eurocurrency Rate Advances as the
Borrowers’ Agent may elect in its notice of borrowing, continuation or
conversion but subject to the limitations hereof. Notwithstanding
anything to the contrary, all Term Loans (Foreign Currency) shall be made
and maintained in Foreign Currency and shall constitute Foreign Currency
Advances.

     (d) Swingline Loans. Upon the terms and subject to the conditions
of this Agreement, until the Termination Date, U.S. Bank agrees to lend
to the Borrowers loans (each a “Swingline Loan”) at such times and in
such amounts as the Borrowers’ Agent shall request, up to an aggregate
principal amount at any time outstanding equal to the amount by which
U.S. Bank’s Revolving Commitment Amount exceeds the principal amount
outstanding under U.S. Bank’s Revolving Note, provided, that, at no time
shall the aggregate principal amount of outstanding Swingline Loans
exceed $5,000,000; and provided further, that U.S. Bank will not make a
Swingline Loan if (i) after giving effect thereto, any of the limitations
set forth in Section 2.1(a) would be exceeded or (ii) U.S. Bank has
determined that one or more of the conditions precedent set forth in
Section 3 for the making of a Revolving Loan have not been satisfied.
Notwithstanding anything to the contrary, (a) all Swingline Loans shall
be made as and maintained as Prime Rate Advances and (b) no Swingling
Loans shall be made as Foreign Currency Advances.

     (e) Joint and Several Liability. Notwithstanding anything to the
contrary in this Agreement or any other Loan Document, (a) the Company
and the Subsidiary Borrowers shall be jointly and severally liable for
all of the Obligations, (b) the Foreign Currency Borrowers shall be
jointly and severally liable only for the Obligations of the other
Foreign Currency Borrowers that arise from Foreign Currency Advances and
Letters of Credit denominated in Foreign Currency except for any
obligation which, if it were so included, would result in this Agreement
or any other Loan Document constituting unlawful financial assistance for
the purposes of Section 151 and 152 of the Companies Act 1985 and (c) the
Foreign Currency Borrowers shall not be liable for the portion of the
Obligations that arise from Letters of Credit denominated in U.S. Dollars
or from Advances made to Persons other than to Foreign Currency Borrowers
except for any obligation which, if it were so included, would result in
this Agreement or any other Loan Document constituting unlawful financial
assistance for the purposes of Section 151 and 152 of the Companies Act
1985.

     Section 2.2 Procedure for Loans.

     (a) Procedure for Revolving Loans and Swingline Loans.

     (i) Requests for Revolving Loans. Any request by the
Borrowers’ Agent for Revolving Loans or a Swingline Loan hereunder
shall be in writing or, as to Advances in U.S. Dollars, by
telephone and must be given so as to be received by the Agent (or,
as to Foreign Currency Advances, to the Foreign

26

 

Currency Funding Agent with a copy to the Agent) (a) not later
than 1:00 P.M. (local time of the Foreign Currency Funding Agent)
four Eurocurrency Business Days prior to the requested Revolving
Loan Date if the Revolving Loans (or any portion thereof) are
requested as Foreign Currency Advances, (b) not later than 1:00
P.M. (Minneapolis time) three Eurocurrency Business Days prior to
the requested Revolving Loan Date if the Revolving Loans (or any
portion thereof) are requested as Eurocurrency Rate Advances in
U.S. Dollars, (c) not later than 1:00 P.M. (Minneapolis time) on
the requested Revolving Loan Date or if the Revolving Loans are
requested as Prime Rate Advances in U.S. Dollars, and (d) not later
than 4:00 P.M. (Minneapolis time) on the requested Revolving Loan
Date or if the Loans are requested as Swingline Loans. Each
request for Revolving Loans and Swingline Loans hereunder shall be
irrevocable and shall be deemed a representation by each Borrower
that on the requested Revolving Loan Date or Swingline Loan Date,
as applicable, and after giving effect to the requested Revolving
Loans or Swingline Loans, the applicable conditions specified in
Article III have been and will be satisfied. Each request for
Revolving Loans and Swingline Loans hereunder shall specify (i) the
requested Revolving Loan Date or Swingline Loan Date, (ii) the
aggregate amount of Revolving Loans or Swingline Loans to be made
on such date which shall be in a minimum amount of $100,000.00 in
the case of Eurocurrency Rate Advances, $100,000.00 in the case of
Prime Rate Advances and $1,000,000 in the case of Foreign Currency
Advances or, if more, an integral multiple thereof, (iii) whether
such Revolving Loans are to be funded as Prime Rate Advances or
Eurocurrency Rate Advances and/or Foreign Currency Advances (and,
if such Revolving Loans are to be made with more than one
applicable interest rate choice, specifying the amount to which
each interest rate choice is applicable) and (iv) in the case of
Eurocurrency Rate Advances, the duration of the initial Interest
Period applicable thereto. The Agent (and, as applicable, the
Foreign Currency Funding Agent) may rely on any telephone request
by the Borrowers’ Agent for Revolving Loans or Swingline Loans
hereunder which it believes in good faith to be genuine; and each
Borrower hereby waives the right to dispute the Agent’s or the
Foreign Currency Funding Agent’s record of the terms of such
telephone request. The Foreign Currency Funding Agent shall
promptly notify the Agent of the receipt of any such request by it
for a Revolving Loan. The Agent shall promptly notify each other
Bank of the receipt of such request for a Revolving Loan, the
matters specified therein, and of such Bank’s ratable share of the
requested Revolving Loans. On the date of the requested Revolving
Loans, each Bank shall provide its share of the requested Revolving
Loans to the Agent (or, as to Foreign Currency Advances, to the
Foreign Currency Funding Agent) in Immediately Available Funds not
later than 3:00 P.M. (Minneapolis time, or, as to Foreign Currency
Advances, local time of the Foreign Currency Funding Agent).
Unless the Agent determines that any applicable condition specified
in Article III has not been satisfied (or, as to Foreign Currency
Advances, has notified the Foreign Currency Funding Agent in
writing not to make the relevant Foreign Currency Advance), the
Agent (or, as to Foreign Currency Advances, the Foreign Currency
Funding Agent) will make available to the Borrowers at its
principal office in Immediately

27

 

Available Funds not later than 4:00 P.M. (Minneapolis time) on
the requested Revolving Loan Date the amount of the requested
Revolving Loans.

     (ii) Funding of Revolving Loans by Banks. If the Agent (or,
as to Foreign Currency Advances, the Foreign Currency Funding
Agent) has made a Revolving Loan to the Borrowers on behalf of a
Bank but has not received the amount of such Revolving Loan from
such Bank by the time herein required, such Bank shall pay interest
to the Agent (or the Foreign Currency Funding Agent, as applicable)
on the amount so advanced at the Federal Funds Rate (or any similar
rate calculated by the Foreign Currency Funding Agent) from the
date of such Revolving Loan to the date funds are received by the
Agent or the Foreign Currency Funding Agent (as applicable) from
such Bank, such interest to be payable with such remittance from
such Bank of the principal amount of such Revolving Loan (provided,
however, that the Agent or Foreign Currency Funding Agent shall not
make any Revolving Loan on behalf of a Bank if the Agent or Foreign
Currency Funding Agent has received prior notice in writing from
such Bank that it will not make such Revolving Loan). If the Agent
or Foreign Currency Funding Agent (as applicable) does not receive
payment from such Bank by the next Business Day after the date of
any Revolving Loan, the Agent or Foreign Currency Funding Agent (as
applicable) shall be entitled to recover such Revolving Loan, with
interest thereon at the rate (or rates) then applicable to such
Revolving Loan, on the next Business Day after demand therefor from
the Borrowers, without prejudice to the Agent’s and the Foreign
Currency Funding Agent’s and the Borrowers’ rights against such
Bank. If such Bank pays the Agent or the Foreign Currency Funding
Agent the amount herein required with interest at the Federal Funds
Rate (or other similar rate used by the Foreign Currency Funding
Agent) before the Agent or the Foreign Currency Funding Agent has
recovered from the Borrowers, such Bank shall be entitled to the
interest payable by the Borrowers with respect to the Revolving
Loan in question accruing from the date the Agent or the Foreign
Currency Funding Agent made such Revolving Loan. Unless U.S. Bank
determines that any applicable condition specified in Article III
has not been satisfied, U.S. Bank shall make available to the
Borrowers at U.S. Bank’s main office in Minneapolis Minnesota in
Immediately Available Funds not later than 3:00 P.M. (Minneapolis
time) on the requested Swingline Loan Date the amount of the
requested Swingline Loan.

     (b) Procedure for Term Loans. Not later than 1:00 P.M. (Minneapolis
time) three Eurocurrency Business Days prior to the requested Closing
Date if the Term Loans are requested as Eurocurrency Rate Advances and
not later than 10:00 A.M. (Minneapolis time) one Business Day on
requested Closing Date if the Term Loans are requested as Prime Rate
Advances, the Borrowers’ Agent shall deliver to the Agent a written
notice of borrowing. Such notice of borrowing shall be irrevocable and
shall be deemed a representation by the Borrowers that on the Closing
Date and after giving effect to the Term Loans the applicable conditions
specified in Article III have been and will be satisfied. Such notice of
borrowing shall specify (i) the requested Closing Date, (ii) whether such
Term Loans are to be funded as Eurocurrency Rate Advances or Prime Rate
Advances, and (iii) in the case of Eurocurrency Rate Advances, the
duration of the initial

28

 

Interest Period applicable thereto. The Agent shall promptly notify
each Bank of the receipt of such notice and the matters specified
therein. On the requested Closing Date, each Bank shall provide to the
Agent the amount of such Bank’s Term Loan in Immediately Available Funds
not later than 3:00 P.M. (Minneapolis time). Unless the Agent determines
that any applicable condition specified in Article III has not been
satisfied, the Agent will make the proceeds of the Term Loans available
to the Borrowers at the Agent’s main office on the requested date.

     (c) Procedure for Term Loans (Foreign Currency). Not later than
1:00 P.M. (local time of the Foreign Currency Funding Agent) two
Eurocurrency Business Days prior to the requested Closing Date, the
Borrowers’ Agent shall deliver to the Foreign Currency Funding Agent a
written notice of borrowing. Such notice of borrowing shall be
irrevocable and shall be deemed a representation by the Borrowers that on
the Closing Date and after giving effect to the Term Loans (Foreign
Currency) the applicable conditions specified in Article III have been
and will be satisfied. Such notice of borrowing shall specify (i) the
requested Closing Date, (ii) whether such Term Loans (Foreign Currency)
are to be funded as Eurocurrency Rate Advances or Prime Rate Advances,
and (iii) in the case of Eurocurrency Rate Advances, the duration of the
initial Interest Period applicable thereto. The Agent shall promptly
notify each Bank of the receipt of such notice and the matters specified
therein. On the requested Closing Date, each Bank will make the proceeds
of its Term Loans (Foreign Currency) available to the Borrowers at the
wire transfer instructions of the Foreign Currency Borrowers furnished by
the Borrowers’ Agent to such Bank, in each case unless such Bank
determines that any applicable condition specified in Article III has not
been satisfied and notifies the Foreign Currency Funding Agent in writing
of such determination.

     (d) Additional Foreign Currency Provisions.

     (i) Payments in Foreign Currency. The specification of
payment of Foreign Currency Advances in the related Foreign
Currency at a specific place pursuant to this Agreement is of the
essence. Such Foreign Currency shall be the currency of account
and payment of Foreign Currency Advances. Notwithstanding anything
in this Agreement, the obligations of the Foreign Currency
Borrowers in respect of Foreign Currency Advances shall not be
discharged by an amount paid in any other currency or at another
place, whether pursuant to a judgment or otherwise, to the extent
the amount so paid, on prompt conversion into the applicable
Foreign Currency and transfer to the Agent under normal banking
procedure, does not yield the amount of such Foreign Currency due
under this Agreement. In the event that any payment, whether
pursuant to a judgment or otherwise, upon conversion and transfer,
does not result in payment of the amount of such Foreign Currency
due under this Agreement, such Bank shall have an independent cause
of action against each of the Borrowers for the currency deficit.

29

 

     (ii) Currency Fluctuation.

     (A) If at any time, solely as a result of fluctuations
in currency exchange rates the Total Revolving Outstandings
exceed the lesser of one hundred five percent (105%) of the
Aggregate Revolving Commitment Amounts or one hundred five
percent (105%) of the Borrowing Base, the Borrowers for the
ratable benefit of the Banks shall prepay the Revolving Loans
on the next Business Day after demand therefor by the Agent
in an aggregate amount such that after giving effect thereto
the Total Revolving Outstandings are less than or equal to
the lesser of the Aggregate Revolving Commitment Amounts or
the Borrowing Base; or

     (B) Absent an Event of Default, all of the mandatory
prepayments made under this Section 2.2 shall be applied
first to Prime Rate Advances and to any Eurocurrency Advances
maturing on the date of such prepayment, and the Agent shall
hold all remaining amounts in escrow for the benefit of the
Banks and the Letter of Credit Bank and shall release such
amounts upon the expiration of the Interest Periods
applicable to any subsequently maturing Eurocurrency Advances
(it being understood that interest shall continue to accrue
on the Obligations until such time as such prepayments are
released from escrow and applied to reduce the Obligations).
After the occurrence and during the continuance of an Event
of Default, at the direction of the Agent or the Required
Banks, all of the mandatory prepayments made under this
Section 2.2 shall be applied first to Prime Rate Advances and
to any Eurocurrency Advances maturing on the date of such
prepayment and then to subsequently maturity Eurocurrency
Advances in order of maturity.

     Section 2.3 Refinancing of Swingline Loans.

     (a) Permissive Refinancings of Swingline Loans. U.S. Bank, at any
time in its sole and absolute discretion, may notify the Agent, not later
than 1:00 PM (Minneapolis time) on any Business Day, that it desires to
have any portion of the outstanding Swingline Loans refunded with
Revolving Loans made by the Banks under Section 2.1(a), whereupon the
Agent shall promptly request that each Bank (including U.S. Bank) make a
Revolving Loan in an amount equal to its Revolving Percentage of the
Revolving Loans to be made to repay to U.S. Bank the portion of the
aggregate unpaid principal amount of the Swingline Loans specified in
such notice. The Agent shall promptly notify any Borrower of its receipt
of any such notice from U.S. Bank.

     (b) Mandatory Refinancings of Swingline Loans. On Thursday of each
week (or if such day is not a Business Day, on the first Business Day
immediately preceding such day), the Agent shall notify each Bank of the
aggregate amount of Swingline Loans outstanding as of the end of the
previous day and the amount of Revolving Loans required to be made by
each Bank to refinance such outstanding Swingline Loans (which shall be
in the amount of each Bank’s Revolving Percentage of such outstanding
Swingline Loans).

30

 

     (c) Banks’ Obligation to Fund Refinancings of Swingline Loans. Upon
its receipt of a request from the Agent under Section 2.3(a) or 2.3(b),
each Bank (including U.S. Bank) shall make a Revolving Loan (which shall
not be made as a Swingline Loan) in an amount equal to its Revolving
Percentage of the aggregate principal amount of Swingline Loans to be
refinanced, and make the proceeds of such Revolving Loans available to
U.S. Bank, in Immediately Available Funds, at the main office of the
Agent in Minneapolis not later than 3:00 P.M. (Minneapolis time) on the
date such notice was received; provided, however, that a Bank shall not
be obligated to make any such Revolving Loan unless (A) U.S. Bank
believed in good faith that all conditions to making the subject
Revolving Loan were satisfied at the time the related Swingline Loan was
made, or (B) such Bank had actual knowledge, by receipt of the statements
furnished to it pursuant to Section 5.1 or otherwise, that any such
condition had not been satisfied and failed to notify U.S. Bank in a
writing received by U.S. Bank prior to the time it made such Swingline
Loan that U.S. Bank was not authorized to make a Swingline Loan until
such condition has been satisfied, or (C) the satisfaction of any such
condition that was not satisfied had been waived in a writing by the
Required Banks in accordance with the provisions of this Agreement. The
proceeds of Revolving Loans made pursuant to the preceding sentence shall
be delivered to U.S. Bank (and not to the Borrower) and applied to the
outstanding Swingline Loans, and any Borrower authorizes the Agent to
charge any account maintained by it with the Agent in order to
immediately pay U.S. Bank the amount of such Swingline Loans to the
extent amounts received from the other Banks are not sufficient to repay
in full the outstanding Swingline Loans requested or required to be
refinanced. Upon the making of a Revolving Loan by a Bank pursuant to
this Section 2.3(c), the amount so funded shall become an Obligation
evidenced by such Bank’s Revolving Note and shall no longer be an
Obligation evidenced by the Swingline Note. If for any reason any Bank
is unable to make a Revolving Loan to any Borrower to refinance a
Swingline Loan hereunder, then such Bank shall immediately purchase from
U.S. Bank a participation interest in such Swingline Loan, at par, in an
amount equal to such Bank’s Revolving Percentage of such Swingline Loan,
which participation interest shall, for all purposes hereunder except
Section 2.1 and 2.2, be deemed a Revolving Loan made by such Bank
hereunder. If any portion of any such amount paid to U.S. Bank should be
recovered by or on behalf of any Borrower from U.S. Bank in bankruptcy or
otherwise, the loss of the amount so recovered shall be ratably shared
among all the Banks in accordance with their respective Revolving
Percentages. Each Bank’s obligation to make Revolving Loans referred to
in this Section 2.3(c) shall, subject to the proviso to the first
sentence of this Section 2.3(c), be absolute and unconditional and shall
not be affected by any circumstance, including, without limitation, (i)
any setoff, counterclaim, recoupment, defense or other right which such
Bank may have against U.S. Bank, any Borrower or anyone else for any
reason whatsoever; (ii) the occurrence or continuance of a Default or
Event of Default; (iii) any adverse change in the condition (financial or
otherwise) of any Borrower; (iv) any breach of this Agreement by any
Borrower, the Agent or any Bank; or (v) any other circumstance, happening
or event whatsoever, whether or not similar to any of the foregoing;
provided, that in no event shall a Bank be obligated to make a Revolving
Loan under this Section 2.3(c) if, after giving effect thereto, such
Bank’s Revolving Percentage of the sum of the Total Revolving
Outstandings (after giving effect to the repayment of the Swingline Note
to be

31

 

funded with such Loan and Loans made the same day by the other
Banks) would exceed such Bank’s Revolving Commitment Amount.

     (d) Funding of Loans. Each Revolving Loan made to refund Swingline
Loans pursuant to Section 2.3(c) shall be funded as a Prime Rate Advance,
but any Borrower may elect to convert such Prime Rate Advances to
Eurocurrency Rate Advances pursuant to Section 2.5.

     Section 2.4 Notes. The Revolving Loans of each Bank shall be evidenced by
a single Revolving Note payable to the order of such Bank in a principal amount
equal to such Bank’s Revolving Commitment Amount originally in effect. The Term
Loans of each Bank shall be evidenced by a Term Note payable to the order of
such Bank in the principal amount equal to such Bank’s Term Loan Commitment
Amount. The Term Loans (Foreign Currency) of each Bank shall be evidenced by a
Term Note (Foreign Currency) payable to the order of such Bank in the principal
amount equal to such Bank’s Term Loan Commitment Amount (Foreign Currency).
The Swingline Loans shall be evidenced by a single Swingline Note payable to
the order of U.S. Bank in the principal amount of $5,000,000. Upon receipt of
each Bank’s Notes from the Borrowers, the Agent shall transmit such Notes to
such Bank. Each Bank shall enter in its ledgers and records the amount of each
Term Loan, each Term Loan (Foreign Currency) and each Revolving Loan, the
various Advances made, converted or continued and the payments made thereon,
and each Bank is authorized by each Borrower to enter on a schedule attached to
its Term Note, Term Note (Foreign Currency) or Revolving Note, as appropriate,
a record of such Term Loans, Term Loans (Foreign Currency), Revolving Loans,
Advances and payments; provided, however that the failure by any Bank to make
any such entry or any error in making such entry shall not limit or otherwise
affect the obligation of the Borrowers hereunder and on the Notes, and, in all
events, the principal amounts owing by the Borrowers in respect of the
Revolving Notes shall be the aggregate amount of all Revolving Loans made by
the Banks less all payments of principal thereof made by the Borrowers, the
principal amount owing by the Borrowers in respect of the Term Notes shall be
the aggregate amount of all Term Loans made by the Banks less all payments of
principal thereof made by the Borrowers, the principal amount owing by the
Borrowers in respect of the Term Notes (Foreign Currency) shall be the
aggregate amount of all Term Loans (Foreign Currency) made by the Banks less
all payments of principal thereof made by the Borrowers, and the principal
amount owing by the Borrowers in respect of the Swingline Note shall be the
aggregate amount of all Swingline Loans made by U.S. Bank less all payments of
principal thereof made by the Borrowers and any refinancings thereof pursuant
to Section 2.3.

     Section 2.5 Conversions and Continuations. On the terms and subject to
the limitations hereof, the Borrowers shall have the option at any time and
from time to time to convert all or any portion of the Advances into Prime Rate
Advances or Eurocurrency Rate Advances or to continue a Eurocurrency Rate
Advance as such; provided, however that a Eurocurrency Rate Advance may be
converted or continued only on the last day of the Interest Period applicable
thereto and, at the option of the Agent or the Required Banks, no Advance may
be converted or continued as a Eurocurrency Rate Advance if a Default or Event
of Default has occurred and is continuing on the proposed date of continuation
or conversion. Advances may be converted to, or continued as, Eurocurrency
Rate Advances only in a minimum amount, as to the aggregate amount of the
Advances of all Banks so converted or continued, of $3,000,000 and

32

 

multiples of $1,000,000 in excess thereof (or, as to Foreign Currency
Advances, £1,500,000, or if less, unpaid balance of the Foreign Currency
Advances). The Borrowers’ Agent shall give the Agent (or, as to Foreign
Currency Advances, the Foreign Currency Funding Agent with a copy thereof to
the Agent) written notice of any continuation or conversion of any Advances and
such notice must be given so as to be received by the Agent (or, as to Foreign
Currency Advances, the Foreign Currency Funding Agent) (a) not later than 1:00
P.M. (Minneapolis time) three Eurocurrency Business Days prior to the requested
date of conversion or continuation in the case of the continuation of, or
conversion to, Eurocurrency Rate Advances denominated in U.S. Dollars, (b) not
later than 1:00 P.M. (local time of the Foreign Currency Funding Agent) four
Eurocurrency Business Days prior to the requested date of conversion or
continuation in the case of the continuation of, or conversion to, Eurocurrency
Rate Advances in denominated in Foreign Currency, and (c) not later than 1:00
P.M. (Minneapolis time, or, as to Foreign Currency Advances, local time of the
Foreign Currency Funding Agent) on the date of the requested conversion to
Prime Rate Advances. Each such notice shall specify (a) the amount to be
continued or converted, (b) the date for the continuation or conversion (which
must be (i) the last day of the preceding Interest Period for any continuation
or conversion of Eurocurrency Rate Advances, (ii) a Eurocurrency Business Day
in the case of conversions to or continuations as Eurocurrency Advances, and
(iii) a Business Day in the conversions to Prime Rate Advances, and (c) in the
case of conversions to or continuations as Eurocurrency Rate Advances, the
Interest Period applicable thereto. Any notice given by the Borrowers’ Agent
under this Section shall be irrevocable. If the Borrowers’ Agent shall fail to
notify the Agent (or, as to Foreign Currency Advances, the Foreign Currency
Funding Agent) of the continuation of any Eurocurrency Rate Advances within the
time required by this Section, at the option of the Agent, such Advances shall,
on the last day of the Interest Period applicable thereto (A) automatically be
continued as Eurocurrency Rate Advances with the same principal amount and the
same Interest Period or (B) automatically be converted to Prime Rate Advances
or Prime Rate Advances, as applicable, with the same principal amount. All
conversions and continuation of Advances must be made uniformly and ratably
among the Banks. Notwithstanding anything to the contrary, all Foreign
Currency Advances made by USBNA and Comerica Bank shall be made and maintained
as Eurocurrency Rate Advances.

     Section 2.6 Interest Rates, Interest Payments and Default Interest.

     (a) The Revolving Loans and Swingline Loans. Interest shall accrue
and be payable on the Revolving Loans and Swingline Loans as follows:

     (i) Subject to paragraph (iii) below, each Eurocurrency Rate
Advance shall bear interest on the unpaid principal amount thereof
during the Interest Period applicable thereto at a rate per annum
equal to the sum of (A) the Adjusted Eurocurrency Rate for such
Interest Period, plus (B) the Applicable Margin.

     (ii) Subject to paragraph (iii) below, each Prime Rate Advance
shall bear interest on the unpaid principal amount thereof at a
varying rate per annum equal to the sum of (A) the Prime Rate, plus
(B) the Applicable Margin.

33

 

     (iii) Upon the occurrence and during the continuance of any
Event of Default, each Advance and each Swingline Loan shall, at
the option of the Agent
or the Required Banks after written notice thereof to the
Borrower’s Agent (or, upon the occurrence and during the
continuance of any Event of Default under Section 7.1(f) or (g),
each Advance and each Swingline Loan shall automatically), bear
interest until paid in full (A) during the balance of any Interest
Period applicable to such Advance, at a rate per annum equal to the
sum of the rate applicable to such Advance during such Interest
Period plus 2.0%, and (B) otherwise, at a rate per annum equal to
the sum of (1) the Prime Rate, plus (2) the Applicable Margin for
Prime Rate Advances, plus (3) 2.0%.

     (iv) Interest shall be payable (A) with respect to each
Eurocurrency Rate Advance having an Interest Period of three months
or less on the last day of the Interest Period applicable thereto;
(B) with respect to any Eurocurrency Rate Advance having an
Interest Period greater than three months, on the last day of the
Interest Period applicable thereto and on each day that would have
been the last day of the Interest Period for such Advance had
successive Interest Periods of three months duration been
applicable to such Advance; (C) with respect to any Prime Rate
Advance, on the last day of each month; (D) with respect to all
Revolving Loans, upon any permitted prepayment (on the amount
prepaid); and (E) with respect to all Revolving Loans and
Swingline Loans, on the Termination Date; provided that interest
under Section 2.6(a)(iii) shall be payable on demand.

     (b) The Term Loans. Interest shall accrue and be payable on the
Term Loans as follows:

     (i) Subject to paragraph (iii) below, each Eurocurrency Rate
Advance shall bear interest on the unpaid principal amount thereof
during the Interest Period applicable thereto at a rate per annum
equal to the sum of (A) the Adjusted Eurocurrency Rate for such
Interest Period, plus (B) the Applicable Margin.

     (ii) Subject to paragraph (iii) below, each Prime Rate Advance
shall bear interest on the unpaid principal amount thereof at a
varying rate per annum equal to the sum of (A) the Prime Rate, plus
(B) the Applicable Margin.

     (iii) Upon the occurrence and during the continuance of any
Event of Default, each Advance shall, at the option of the Agent or
the Required Banks after written notice thereof to the Borrower’s
Agent (or, upon the occurrence and during the continuance of any
Event of Default under Section 7.1(f) or (g), each Advance shall
automatically), bear interest until paid in full (A) during the
balance of any Interest Period applicable to such Advance, at a
rate per annum equal to the sum of the rate applicable to such
Advance during such Interest Period plus 2.0%, and (B) otherwise,
at a rate per annum equal to the sum of (1) the Prime Rate, plus
(2) the Applicable Margin for Prime Rate Advances, plus (3) 2.0%.

     (iv) Interest shall be payable (A) with respect to each
Eurocurrency Rate Advance having an Interest Period of three months
or less on the last day of the Interest Period applicable thereto;
(B) with respect to any Eurocurrency Rate

34

 

Advance having an Interest Period greater than three months,
on the last day of the Interest Period applicable thereto and on
each day that would have been the last day of the Interest Period
for such Advance had successive Interest Periods of three months
duration been applicable to such Advance; (C) with respect to any
Prime Rate Advance, on the last day of each month; and (D) with
respect to all Term Loans, on the Term Loan Termination Date;
provided that interest under Section 2.6(b)(iii) shall be payable
on demand.

     (c) The Term Loans (Foreign Currency). Interest shall accrue and be
payable on the Term Loans (Foreign Currency) as follows:

     (i) Subject to paragraph (iii) below, each Eurocurrency Rate
Advance shall bear interest on the unpaid principal amount thereof
during the Interest Period applicable thereto at a rate per annum
equal to the sum of (A) the Adjusted Eurocurrency Rate for such
Interest Period, plus (B) the Applicable Margin.

     (ii) Subject to paragraph (iii) below, each Prime Rate Advance
shall bear interest on the unpaid principal amount thereof at a
varying rate per annum equal to the sum of (A) the Prime Rate, plus
(B) the Applicable Margin.

     (iii) Upon the occurrence and during the continuance of any
Event of Default, each Advance shall, at the option of the Agent or
the Required Banks after written notice thereof to the Borrower’s
Agent (or, upon the occurrence and during the continuance of any
Event of Default under Section 7.1(f) or (g), each Advance shall
automatically), bear interest until paid in full (A) during the
balance of any Interest Period applicable to such Advance, at a
rate per annum equal to the sum of the rate applicable to such
Advance during such Interest Period plus 2.0%, and (B) otherwise,
at a rate per annum equal to the sum of (1) the Prime Rate, plus
(2) the Applicable Margin for Prime Rate Advances, plus (3) 2.0%.

     (iv) Interest shall be payable (A) with respect to each
Eurocurrency Rate Advance having an Interest Period of three months
or less on the last day of the Interest Period applicable thereto;
(B) with respect to any Eurocurrency Rate Advance having an
Interest Period greater than three months, on the last day of the
Interest Period applicable thereto and on each day that would have
been the last day of the Interest Period for such Advance had
successive Interest Periods of three months duration been
applicable to such Advance; (C) with respect to any Prime Rate
Advance, on the last day of each month; and (D) with respect to
all Term Loans (Foreign Currency), on the Term Loan Termination
Date; provided that interest under Section 2.6(b)(iii) shall be
payable on demand.

     Section 2.7 Repayment.

     (a) The unpaid principal balance of all Revolving Notes, together
with all accrued and unpaid interest thereon, shall be due and payable on
the Termination Date.

35

 

     (b) The unpaid principal balance of the Term Loans shall be payable
on the last day of each calendar quarter as follows:

	 	 	 	 	 
	from December 31, 2004 through
September 30, 2005

	 	$	1,400,000	 
	 
	 	 	 	 
	from December 31, 2005 through
September 30, 2006

	 	$	1,600,000	 
	 
	 	 	 	 
	from December 31, 2006 through
September 30, 2007

	 	$	2,000,000	 
	 
	 	 	 	 
	from December 31, 2007 through
September 30, 2008

	 	$	2,400,000	 
	 
	 	 	 	 
	from December 31, 2008 through June
30, 2010

	 	$	2,800,000	 
	 
	 	 	 	 
	and on the Term Loan Termination Date

	 	$2,800,000 plus any
unpaid principal

     (c) The unpaid principal balance of the Term Loans (Foreign
Currency) shall be payable on the last Eurocurrency Business Day of each
calendar quarter as follows:

	 	 	 	 	 
	from December 31, 2004 through
September 30, 2005

	 	£	189,907.76	 
	 
	 	 	 	 
	from December 31, 2005 through
September 30, 2006

	 	£	217,037.44	 
	 
	 	 	 	 
	from December 31, 2006 through
September 30, 2007

	 	£	271,296.80	 
	 
	 	 	 	 
	from December 31, 2007 through
September 30, 2008

	 	£	325,556.16	 
	 
	 	 	 	 
	from December 31, 2008 through June
30, 2010

	 	£	379,815.52	 
	 
	 	 	 	 
	and
on the Term Loan Termination Date

	 	£379,815.49 plus any unpaid
principal

36

 

     Section 2.8 Prepayments.

     (a) Mandatory Prepayments for Borrowing Base Deficiency. If at any
time a Borrowing Base Deficiency exists (other than as a result of
currency fluctuations), the Subsidiary Borrowers and the Company shall
pay not later than the next Business Day the principal of the Swingline
Loans and Revolving Loans an amount equal to such Borrowing Base
Deficiency. Any such payments shall be applied first against Prime Rate
Advances on Swingline Loans, then to Prime Rate Advances on Revolving
Loans, and then to Eurodollar Rate Advances in order starting with the
Eurodollar Rate Advances having the shortest time to the end of the
applicable Interest Period. Any such payments shall be applied to
Foreign Currency Advances in order starting with the ones with the
shortest time to the end of the applicable Interest Period. Amounts paid
on the Revolving Loans under this paragraph (a) shall be for the account
of each Bank in proportion to its share of outstanding Revolving Loans.
If, after paying all outstanding Revolving Loans, a Borrowing Base
Deficiency still exists, the Borrowers shall pay into the Holding Account
an amount equal to the amount of the remaining Borrowing Base Deficiency.

     (b) Asset Dispositions. If the Borrowers or any of their
Subsidiaries shall at any time or from time to time:

     (i) make a Disposition; or

     (ii) suffer an Event of Loss;

and the aggregate amount of the Net Proceeds received by a Borrower or a
Subsidiary in connection with such Disposition or Event of Loss and all
other Dispositions and Events of Loss occurring during the fiscal year in
which such Disposition or Event of Loss has occurred exceeds $1,000,000,
then (A) the Borrowers’ Agent shall promptly notify the Agent of such
proposed Disposition or Event of Loss (including the amount of the
estimated Net Proceeds to be received by such Borrower or Subsidiary in
respect thereof) and (B) within three (3) Business Days of the receipt by
such Borrower or Subsidiary of the Net Proceeds of such Disposition or
Event of Loss, such Borrower shall deliver, or cause to be delivered,
such Net Proceeds to the Agent for distribution to the Banks as a
prepayment of the Loans, which prepayment shall be applied in accordance
with subsection 2.8(e) hereof. Notwithstanding the foregoing and
provided no Event of Default has occurred and is continuing, such
prepayment shall not be required to the extent such Borrower reinvests
the Net Proceeds of such Disposition or Event of Loss, or a portion
thereof, in productive assets of a kind then used or usable in the
business of such Borrower, within one hundred eighty (180) days after the
date such Net Proceeds are received or enters into a binding commitment
thereof within said one hundred eighty (180) day period and subsequently
makes such reinvestment. Pending such reinvestment, the Net Proceeds
shall either (i) be delivered to the Agent, for distribution to the
Banks,

37

 

as a prepayment of the Revolving Loans, but not as a permanent reduction
of the Revolving Loan Commitment or (ii) be retained by such Borrower and
deposited in a deposit account of the Borrower for which the Agent shall
have received a deposit account control agreement, in form and substance
reasonably satisfactory to, or previously approved by, the Agent,
executed by such Borrower, the Agent and the financial institution at
which such deposit account is maintained, and over which deposit account
the Agent has “control” under and as defined in the UCC, and such Net
Proceeds shall remain on deposit therein until such reinvestment or
otherwise applied as a prepayment to the Obligations.

     (c) Issuance of Securities. Within three (3) Business Days of the
receipt by a Borrower or a Subsidiary of the Net Issuance Proceeds of the
issuance of debt securities (other than Net Issuance Proceeds from the
issuance of (i) debt securities in respect of Indebtedness permitted
hereunder and (ii) Excluded Issuances), the Borrower shall deliver, or
cause to be delivered, to the Agent an amount equal to such Net Issuance
Proceeds, for application to the Loans in accordance with subsection
2.8(e).

     (d) Excess Cash Flow. Within three (3) Business Days after the
annual financial statements are required to be delivered pursuant to
subsection 5.1(a) hereof, commencing with the fiscal year ending December
31, 2005, the Borrowers’ Agent shall deliver to the Agent a written
calculation of Excess Cash Flow of the Borrowers for such year and
certified as correct on behalf of the Borrowers by a Responsible Officer
of the Company and concurrently therewith shall deliver to the Agent, for
distribution to the Banks, (i) if the Total Leverage Ratio, determined as
of the last day of such fiscal year is equal to or greater than 2.00 to
1.00, an amount equal to (A) seventy-five percent (75%) of such Excess
Cash Flow less (B) all optional prepayments of the Term Loans, or the
Term Loans (Foreign Currency) or Revolving Loans (where such prepayment
is accompanied by a permanent reduction of the Revolving Commitment
Amounts) made during such period, or (ii) if such Total Leverage Ratio,
determined as of the last day of such fiscal year, is less than 2.00 to
1.00, an amount equal to (A) fifty percent (50%) of such Excess Cash Flow
less (B) all optional prepayments of the Term Loans, or the Term Loans
(Foreign Currency) or Revolving Loans (where such prepayment is
accompanied by a permanent reduction of the Revolving Commitment Amounts)
made during such period, in either such case, for application to the
Loans in accordance with the provisions of subsection 2.8(e) hereof.

     (e) Mandatory Prepayment Provisions. If at any time a prepayment
occurs, the Borrowers shall immediately pay to the Agent for any
prepayment fee payable under Section 2.24. Any such payments shall be
applied first, ratably to the Term Loans and the Term Loans (Foreign
Currency), and second, to any outstanding Revolving Loans (without any
redirection to the Revolving Commitments) All prepayments applied to the
Term Loans and Term Loans (Foreign Currency) shall be applied ratably to
the remaining scheduled principal payments on the applicable Loans. To
the extent any portion of such prepayment would be applied to outstanding
Eurocurrency Rate Advances and no Default or Event of Default has
occurred and is continuing, such portion shall be deposited in the
Holding Account and withdrawn for application to such Eurocurrency Rate
Advances at the end of the then-current Interest Periods applicable

38

 

thereto (or earlier, upon and at any time after the occurrence and
continuance of a Default or an Event of Default).

     (f) Other Mandatory Prepayments. If at any time Total Revolving
Outstandings exceed the Aggregate Revolving Commitment Amounts (other
than as a result of currency fluctuations), the Borrowers shall
immediately repay to the Agent for the account of the Banks the amount of
such excess. Any such payments shall be applied to the Swingline Loans
and Revolving Loans first against Prime Rate Advances and Prime Rate
Advances and then to Eurocurrency Rate Advances in order starting with
the Eurocurrency Rate Advances having the shortest time to the end of the
applicable Interest Period. If, after payment of all outstanding
Advances, the Total Revolving Outstandings still exceed the Aggregate
Revolving Commitment Amounts, the remaining amount paid by the Borrowers
shall be placed in the Holding Account.

     (g) Optional Prepayments. The Borrowers may prepay Prime Rate
Advances, in whole or in part, at any time, without premium or penalty.
Any such prepayment must be accompanied by accrued and unpaid interest on
the amount prepaid. Each partial prepayment shall be in an aggregate
amount for all the Banks of $1,000,000.00 (or, as to Foreign Currency
Advances, £500,000) or an integral multiple of $100,000 (or, as to
Foreign Currency Advances, £50,000) in excess thereof. Except upon an
acceleration following an Event of Default or upon termination of the
Revolving Commitments in whole, the Borrowers may pay Eurocurrency Rate
Advances to which an Interest Period applies only on the last day of the
Interest Period applicable thereto unless the Borrowers pay the Agent for
the benefit of the Banks the amounts specified in Section 2.24 below.
Amounts paid (unless following an acceleration or upon termination of the
Revolving Commitments in whole) or prepaid on Revolving Loans under this
paragraph may be reborrowed upon the terms and subject to the conditions
and limitations of this Agreement. Amounts prepaid on the Term Loans or
Term Loans (Foreign Currency) may not be reborrowed. Amounts paid or
prepaid on the Revolving Loans under this Section 2.8 shall be for the
account of each Bank in proportion to its share of outstanding Revolving
Loans. Amounts paid or prepaid on the Term Loans (Foreign Currency)
under this paragraph shall be for the account of each Bank in proportion
to its share of outstanding Term Loans (Foreign Currency).

Part B — Terms of the Letter of Credit Facility

     Section 2.9 Letters of Credit. Upon the terms and subject to the
conditions of this Agreement, (a) the Existing Letters of Credit shall be
deemed to be Letters of Credit issued under this Agreement and (b) the Letter
of Credit Bank agrees to issue additional Letters of Credit for the account of
the Company and the Subsidiary Borrowers from time to time between the Closing
Date and the Termination Date in such amounts in U.S. Dollars or Foreign
Currency as the Borrowers’ Agent shall request up to an aggregate amount at any
time outstanding not exceeding the Aggregate Revolving Commitment Amounts;
provided that no Letter of Credit will be issued in any amount which, after
giving effect to such issuance, would cause Total Revolving Outstandings to
exceed the lesser of (a) the Aggregate Revolving Commitment Amounts, or (b) the
Borrowing Base; provided further that no Letter of Credit denominated in
Foreign Currency will be issued in an amount which, after giving effect to such
issuance, would

39

 

cause the Total Revolving Outstandings (Foreign Currency) to exceed the
Foreign Currency Sublimit. Notwithstanding anything to the contrary, until a
Foreign Currency Addendum becomes effective, no Letter of Credit Bank shall
have any obligation to issue Letters of Credit in Foreign Currency, except for
the Letters of Credit denominated in Foreign Currency issued on the Closing
Date and listed in Schedule 2.9 hereto.

     Section 2.10 Procedures for Letters of Credit. Each request for a Letter
of Credit shall be made by the Borrowers’ Agent in writing, by telex, facsimile
transmission or electronic conveyance received by the Letter of Credit Bank and
the Agent by 1:00 P.M. (Minneapolis time), on a Business Day which is not less
than one Business Day preceding the requested date of issuance (which shall
also be a Business Day). Each request for a Letter of Credit shall be deemed a
representation by each Subsidiary Borrower and the Company that on the date of
issuance of such Letter of Credit and after giving effect thereto the
applicable conditions specified in Article III have been and will be satisfied.
The Letter of Credit Bank may require that such request be made on such letter
of credit application and reimbursement agreement form as the Letter of Credit
Bank may from time to time specify, along with satisfactory evidence of the
authority and incumbency of the officials of the Borrowers’ Agent making such
request. The Letter of Credit Bank shall promptly notify the Agent and the
other Banks of the receipt of the request and the matters specified therein.
On the date of each issuance of a Letter of Credit, the Letter of Credit Bank
shall send notice to the Agent and the other Banks of such issuance,
accompanied by a copy of the Letter or Letters of Credit so issued.

     Section 2.11 Terms of Letters of Credit.

     (a) Letters of Credit shall be issued in support of obligations of
the Company or the relevant Subsidiary Borrower incurred in the Ordinary
Course of Business. All Letters of Credit must expire not later than the
Business Day preceding the Termination Date. Except as set forth in
Section 2.11(b) hereof, no Letter of Credit may have a term longer than
12 months.

     (b) If the Company or any Subsidiary Borrower so requests, the Agent
shall, issue a Letter of Credit that has automatic renewal provisions
(each, an “Auto-Renewal Letter of Credit”); provided that any such
Auto-Renewal Letter of Credit must permit the Agent to prevent any such
renewal at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “Nonrenewal Notice Date”)
in each such twelve-month period to be agreed upon at the time such
Letter of Credit is issued. Once an Auto-Renewal Letter of Credit has
been issued, the Banks shall be deemed to have authorized (but may not
require) the Agent to permit the renewal of such Letter of Credit at any
time to an expiry date not later than the Termination Date; provided,
however, that the Agent shall not permit any such renewal if (A) the
Agent has determined that it would have no obligation at such time to
issue such Letter of Credit in its renewed form under the terms hereof
(by reason of the provisions of Section 2.9 or otherwise), or (B) it has
received notice (which may be by telephone or in writing) on or before
the day that is two Business Days before the Nonrenewal Notice Date (1)
from the Required Banks stating that the Required Banks have elected not
to permit such renewal or (2) from any Lender

40

 

or the Borrower that one or more of the applicable conditions
specified in Section 3.2 is not then satisfied.

     Section 2.12 Agreement to Repay Letter of Credit Drawings. If the Letter
of Credit Bank has received documents purporting to draw under a Letter of
Credit that the Letter of Credit Bank believes conform to the requirements of
the Letter of Credit, or if the Letter of Credit Bank has decided that it will
comply with the Borrowers’ Agent written or oral request or authorization to
pay a drawing on any Letter of Credit that the Letter of Credit Bank does not
believe conforms to the requirements of the Letter of Credit, it will notify
the Borrowers’ Agent of that fact. The Subsidiary Borrowers and the Company
(or, as to Letters of Credit denominated in Foreign Currency, the Foreign
Currency Borrowers) shall reimburse the Letter of Credit Bank by 9:30 AM
(Minneapolis time) on the day on which such drawing is to be paid in
Immediately Available Funds in an amount equal to the amount of such drawing.
Any amount by which the Subsidiary Borrowers and the Company have failed to
reimburse the Letter of Credit Bank for the full amount of such drawing by
10:00 AM (Minneapolis time) on the date on which the Letter of Credit Bank in
its notice indicated that it would pay such drawing, until reimbursed by the
Subsidiary Borrowers and the Company from the proceeds of Loans pursuant to
Section 2.15 or out of funds available in the Holding Account, is an “Unpaid
Drawing.” For so long as any Unpaid Drawing is outstanding, it shall bear
interest at a floating rate per annum equal to the sum of (a) as to Letters of
Credit denominated in U.S. Dollars, the Prime Rate plus the Applicable Margin
for Prime Rate Advances plus two percent (2.00%) or (b) as to Letters of Credit
denominated in Foreign Currency, the Eurocurrency Rate for an Interest Period
of one day, plus the Applicable Margin for Eurocurrency Rate Advances plus two
percent (2.00%).

     Section 2.13 Obligations Absolute. The obligation of the Subsidiary
Borrowers and the Company under Section 2.12 to repay the Letter of Credit Bank
for any amount drawn on any Letter of Credit and to repay the Banks for any
Revolving Loans made under Section 2.15 to cover Unpaid Drawings shall be
absolute, unconditional and irrevocable, shall continue for so long as any
Letter of Credit is outstanding notwithstanding any termination of this
Agreement, and shall be paid strictly in accordance with the terms of this
Agreement, under all circumstances whatsoever, including without limitation the
following circumstances:

     (a) Any lack of validity or enforceability of any Letter of Credit;

     (b) The existence of any claim, setoff, defense or other right which
any Borrower may have or claim at any time against any beneficiary,
transferee or holder of any Letter of Credit (or any Person for whom any
such beneficiary, transferee or holder may be acting), the Letter of
Credit Bank or any Bank or any other Person, whether in connection with a
Letter of Credit, this Agreement, the transactions contemplated hereby,
or any unrelated transaction; or

     (c) Any statement or any other document presented under any Letter
of Credit proving to be forged, fraudulent, invalid or insufficient in
any respect or any statement therein being untrue or inaccurate in any
respect whatsoever.

41

 

Neither the Letter of Credit Bank nor any Bank nor officers, directors or
employees of any thereof shall be liable or responsible for, and the
obligations of the Borrowers to the Letter of Credit Bank and the Banks shall
not be impaired by:

     (i) The use which may be made of any Letter of Credit or for
any acts or omissions of any beneficiary, transferee or holder
thereof in connection therewith;

     (ii) The validity, sufficiency or genuineness of documents, or
of any endorsements thereon, even if such documents or endorsements
should, in fact, prove to be in any or all respects invalid,
insufficient, fraudulent or forged;

     (iii) The acceptance by the Letter of Credit Bank of documents
that appear on their face to be in order, without responsibility
for further investigation, regardless of any notice or information
to the contrary; or

     (iv) Any other action of the Letter of Credit Bank in making
or failing to make payment under any Letter of Credit if in good
faith and in conformity with U.S. or foreign laws, regulations or
customs applicable thereto.

Notwithstanding the foregoing, the Letter of Credit Bank shall be liable to the
Subsidiary Borrowers and the Company, to the extent, but only to the extent, of
any direct, as opposed to consequential, damages suffered by the Subsidiary
Borrowers and the Company which the Borrowers and the Company prove were caused
by the Letter of Credit Bank’s willful misconduct or gross negligence in
determining whether documents presented under any Letter of Credit comply with
the terms thereof.

Part C — General

     Section 2.14 Optional Reduction of Revolving Commitment Amounts or
Termination of Revolving Commitments. The Borrowers may, at any time, upon not
less than three Business Days prior written notice from the Borrowers’ Agent to
the Agent, reduce the Revolving Commitment Amounts, ratably, with any such
reduction in a minimum aggregate amount for all the Banks of $1,000,000, or, if
more, in an integral multiple of $1,000,000; provided, however, that the
Borrowers may not at any time reduce the Aggregate Revolving Commitment Amounts
below the Total Revolving Outstandings. The Borrowers’ Agent may, at any time
when there are no Letters of Credit outstanding, upon not less than 20 Business
Days prior written notice from the Borrowers’ Agent to the Agent, terminate the
Revolving Commitments in their entirety. Upon termination of the Revolving
Commitments pursuant to this Section, the Borrowers shall pay to the Agent for
the account of the Banks the full amount of all outstanding Advances, all
accrued and unpaid interest thereon, all unpaid Revolving Commitment Fees
accrued to the date of such termination, any indemnities payable with respect
to Advances pursuant to Section 2.24 and all other unpaid Obligations of the
Borrowers to the Agent and the Banks hereunder.

     Section 2.15 Loans to Cover Unpaid Drawings. Whenever any Unpaid Drawing
exists for which there are not then funds in the Holding Account to cover the
same, the Agent shall give the other Banks notice to that effect, specifying
the amount thereof, in which event each Bank is authorized (and each Borrower
does here so authorize each Bank) to, and shall, make a

42

 

Revolving Loan (which Loan (a) shall be made as a Prime Rate Advance, in
the case of an Unpaid Drawing on a Letter of Credit denominated in U.S. Dollars
and (b) shall be made as a Eurocurrency Rate Advance having an initial Interest
Period of one day (and not of one, three or six months), in the case of an
Unpaid Drawing on a Letter of Credit denominated in Foreign Currency) to the
relevant Borrowers in an amount equal to such Bank’s Revolving Percentage of
the amount of the Unpaid Drawing. The Agent shall notify each Bank by 11:00
A.M. (Minneapolis time) on the date such Unpaid Drawing occurs of the amount of
the Revolving Loan to be made by such Bank. Notices received after such time
shall be deemed to have been received on the next Business Day. Each Bank
shall then make such Revolving Loan (regardless of noncompliance with the
applicable conditions precedent specified in Article III hereof and regardless
of whether an Event of Default then exists) and each Bank shall provide the
Agent with the proceeds of such Revolving Loan in Immediately Available Funds
at the office of the Agent, not later than 2:00 P.M. (Minneapolis time) on the
day on which such Bank received such notice (or, in the case of notices
received after 11:00 A.M. (Minneapolis time) is deemed to have received such
notice). The Agent shall apply the proceeds of such Revolving Loans directly
to reimburse the Letter of Credit Bank for such Unpaid Drawing. If any portion
of any such amount paid to the Agent or the Letter of Credit Bank should be
recovered by or on behalf of a Borrower from the Agent or the Letter of Credit
Bank in bankruptcy, by assignment for the benefit of creditors or otherwise,
the loss of the amount so recovered shall be ratably shared between and among
the Banks in the manner contemplated by Section 8.10 hereof. If at the time
the Banks make funds available to the Agent pursuant to the provisions of this
Section, the applicable conditions precedent specified in Article III shall not
have been satisfied, the relevant Borrowers shall pay to the Agent for the
account of the Banks interest on the funds so advanced at a floating rate per
annum equal to the sum of the Prime Rate (or, in the case of a Letter of Credit
denominated in a Foreign Currency, such rate reasonably determined by the
Agent) plus the Applicable Margin for Prime Rate Advances plus two percent
(2.00%). If for any reason any Bank is unable to make a Revolving Loan to a
Borrower to reimburse the Letter of Credit Bank for an Unpaid Drawing, then
such Bank shall immediately purchase from the Letter of Credit Bank a risk
participation in such Unpaid Drawing, at par, in an amount equal to such Bank’s
Revolving Percentage of the Unpaid Drawing.

     Section 2.16 Fees.

     (a) Revolving Commitment Fee. The Borrowers shall pay to the Agent
for the account of each Bank (other than any Defaulting Bank) fees (the
“Revolving Commitment Fees”) in an amount determined by applying the
Applicable Commitment Fee Percentage to the average daily Unused
Revolving Commitment of such Bank during each calendar quarter during the
period from the Closing Date to the Termination Date. Such Revolving
Commitment Fees are payable in arrears quarterly on the last day of each
quarter and on the Termination Date.

     (b) Agent’s Fees. On or before the Closing Date, the Borrowers will
pay the Agent and the Syndication Agent the fees set forth in the
separate Fee Letter dated the date hereof between the Agent and the
Borrowers.

     (c) Letter of Credit Fees. For each Letter of Credit issued, the
Borrowers shall pay to the Agent for the account of the Banks, a fee (a
“Letter of Credit Fee”) in an

43

 

amount determined by applying a per annum rate of equal to the
Applicable Margin for Eurocurrency Rate Advances to the original face
amount of the Letter of Credit for the period from the date of issuance
to the scheduled expiration date of such Letter of Credit is no longer
outstanding, provided that any Letter of Credit fees that accrued or were
paid during the period prior to the Closing Date in connection with the
Existing Letters of Credit shall not be recalculated, redistributed or
reallocated by the Agent or the relevant Letter of Credit Bank. Such
Letter of Credit Fees are payable quarterly in arrears on the last day of
each quarter and on the Termination Date. In addition to the Letter of
Credit Fee, the Borrowers shall pay to the Agent a fronting fee of 0.125%
on the date of issuance of each Letter of Credit plus other customary
fees payable to the Agent and to the Letter of Credit Bank, on demand,
all issuance, amendment, drawing and other fees regularly charged by the
Letter of Credit Bank to its letter of credit customers and all
out-of-pocket expenses incurred by the Letter of Credit Bank in
connection with the issuance, amendment, administration or payment of any
Letter of Credit.

     Section 2.17 Computation. Revolving Commitment Fees and Letter of Credit
Fees and interest on Revolving Loans and Term Loans and Term Loans (Foreign
Currency) shall be computed on the basis of actual days elapsed and a year of
360 days, with the exception of interest based on the Prime Rate, which shall
be computed based on the actual number of days elapsed per 365 (366) day year.

     Section 2.18 Payments. Payments and prepayments of principal of, and
interest on, the Notes and all fees, expenses and other obligations under this
Agreement payable to the Agent or the Banks shall be made without setoff or
counterclaim in Immediately Available Funds not later than 2:00 P.M.
(Minneapolis time, or, as to Foreign Currency Advances, local time of the
Foreign Currency Funding Agent) on the dates called for under this Agreement
and the Notes to the Agent at its main office. Funds received after such time
shall be deemed to have been received on the next Business Day. The Agent will
promptly distribute in like funds to each Bank its ratable share of each such
payment of principal, interest and fees received by the Agent for the account
of the Banks. Whenever any payment to be made hereunder or on the Notes shall
be stated to be due on a day which is not a Business Day, such payment shall be
made on the next succeeding Business Day and such extension of time, in the
case of a payment of principal, shall be included in the computation of any
interest on such principal payment; provided, however, that if such extension
would cause payment of interest on or principal of a Eurocurrency Rate Advance
to be made in the next following calendar month, such payment shall be made on
the next preceding Business Day.

     Section 2.19 Use of Loan Proceeds. The proceeds of the Term Loans and
Term Loans (Foreign Currency) shall be used to refinance existing Indebtedness
of the Borrowers and to fund certain fees and expenses associated with the
closing of the Loan Documents, the Merger and the IPO. The proceeds of the
Revolving Loans shall be used for the Borrowers’ general business purposes in a
manner not in conflict with any of the Borrowers’ covenants in this Agreement.
The proceeds of the initial Loans shall be funded in accordance with the
statement of sources and uses of funds prepared by the Borrowers’ Agent and
attached hereto as Schedule 2.19 and wire transfer instructions furnished by
the Borrowers’ Agent to the Agent in connection therewith.

44

 

     Section 2.20 Interest Rate Not Ascertainable, Etc. If, on or prior to the
date for determining the Adjusted Eurocurrency Rate in respect of the Interest
Period for any Eurocurrency Rate Advance, any Bank determines (which
determination shall be conclusive and binding, absent error) that:

     (a) deposits in U.S. Dollars (in the applicable amount) are not
being made available to such Bank in the relevant market for such
Interest Period, or

     (b) the Adjusted Eurocurrency Rate will not adequately and fairly
reflect the cost to such Bank of funding or maintaining Eurocurrency Rate
Advances for such Interest Period,

such Bank shall forthwith give notice to the Borrowers’ Agent and the other
Banks of such determination, whereupon the obligation of such Bank to make or
continue, or to convert any Advances to Eurocurrency Rate Advances shall be
suspended until such Bank notifies the Borrowers’ Agent and the Agent that the
circumstances giving rise to such suspension no longer exist. While any such
suspension continues, all further Advances by such Bank shall be made with an
interest rate option to which such suspension does not apply. No such
suspension shall affect the interest rate then in effect during the applicable
Interest Period for any Eurocurrency Rate Advance outstanding at the time such
suspension is imposed.

     Section 2.21 Increased Cost. If any Regulatory Change:

     (a) shall subject any Bank (or its Applicable Lending Office) to any
tax, duty or other charge with respect to its Eurocurrency Rate Advances
or its Notes or its obligation to make Eurocurrency Rate Advances or
shall change the basis of taxation of payment to any Bank (or its
Applicable Lending Office) of the principal of or interest on its
Eurocurrency Rate Advances or any other amounts due under this Agreement
in respect of its Eurocurrency Rate Advances or its obligation to make
Eurocurrency Rate Advances (except for changes in the rate of tax on the
overall net income of such Bank or its Applicable Lending Office imposed
by the jurisdiction in which such Bank’s principal office or Applicable
Lending Office is located); or

     (b) shall impose, modify or deem applicable any reserve, special
deposit or similar requirement (including, without limitation, any such
requirement imposed by the Board or the Bank of England or other
applicable Governmental Authority, but excluding with respect to any
Eurocurrency Rate Advance any such requirement to the extent included in
calculating the applicable Adjusted Eurocurrency Rate) against assets of,
deposits with or for the account of, or credit extended by, any Bank’s
Applicable Lending Office or against Letters of Credit issued by the
Agent or shall impose on any Bank (or its Applicable Lending Office) or
on the United States market for certificates of deposit or the interbank
Eurocurrency market any other condition affecting its Eurocurrency Rate
Advances, its Notes or its obligation to make Eurocurrency Rate Advances
or affecting any Letter of Credit;

and the result of any of the foregoing is to increase the cost to such Bank (or
its Applicable Lending Office) of making or maintaining any Eurocurrency Rate
Advance or issuing or

45

 

maintaining any Letter of Credit, or to reduce the amount of any sum received
or receivable by such Bank (or its Applicable Lending Office) under this
Agreement or under its Notes, then, within 30 days after demand by such Bank
(with a copy to the Agent), the Borrowers shall pay to such Bank such
additional amount or amounts as will compensate such Bank for such increased
cost or reduction. Each Bank will promptly notify the Borrowers’ Agent and the
Agent of any event of which it has knowledge, occurring after the date hereof,
which will entitle such Bank to compensation pursuant to this Section and will
designate a different Applicable Lending Office if such designation will avoid
the need for, or reduce the amount of, such compensation and will not, in the
judgment of such Bank, be otherwise disadvantageous to such Bank. Any demand
by any Bank for compensation under this Section shall be accompanied by a
certificate prepared by such Bank, setting forth the additional amount or
amounts to be paid to it hereunder and stating in reasonable detail the basis
for the charge and the method of computation. Each such certificate shall be
conclusive in the absence of error. In determining such amount, any Bank may
use any reasonable averaging and attribution methods. Failure on the part of
any Bank to demand compensation for any increased costs or reduction in amounts
received or receivable with respect to any Interest Period shall not constitute
a waiver of such Bank’s rights to demand compensation for any increased costs
or reduction in amounts received or receivable in any subsequent Interest
Period.

     Section 2.22 Illegality. If any Regulatory Change shall make it unlawful
or impossible for any Bank to make, maintain or fund any Eurocurrency Rate
Advances or Foreign Currency Advances, such Bank shall notify the Borrowers’
Agent and the Agent, whereupon the obligation of such Bank to make or continue,
or to convert any Advances to Eurocurrency Rate Advances or Foreign Currency
Advances shall be suspended until such Bank notifies the Borrowers’ Agent and
the Agent that the circumstances giving rise to such suspension no longer
exist. Before giving any such notice, such Bank shall designate a different
Applicable Lending Office if such designation will avoid the need for giving
such notice and will not, in the judgment of such Bank, be otherwise
disadvantageous to such Bank. If such Bank determines that it may not lawfully
continue to maintain any Eurocurrency Rate Advances to the end of the
applicable Interest Periods, all of the affected Advances shall be
automatically converted to Prime Rate Advances as of the date of such Bank’s
notice, and upon such conversion the Borrowers shall indemnify such Bank in
accordance with Section 2.24.

     Section 2.23 Capital Adequacy. In the event that any Regulatory Change
reduces or shall have the effect of reducing the rate of return on any Bank’s
capital or the capital of its parent corporation (by an amount such Bank deems
material) as a consequence of its Commitments and/or its Loans and/or any
Letters of Credit or any Bank’s obligations to make Advances to cover Letters
of Credit to a level below that which such Bank or its parent corporation could
have achieved but for such Regulatory Change (taking into account such Bank’s
policies and the policies of its parent corporation with respect to capital
adequacy), then the Borrowers shall, within 30 days after written notice and
demand from such Bank to the Borrowers’ Agent (with a copy to the Agent), pay
to such Bank additional amounts sufficient to compensate such Bank or its
parent corporation for such reduction. Any demand by any Bank for compensation
pursuant to this Section shall be accompanied by a certificate prepared by such
Bank stating in reasonable detail the basis for such compensation and the
method of computation. Any determination by such Bank under this Section and
any certificate as to the

46

 

amount of such reduction given to the Borrowers’ Agent by such Bank shall
be final, conclusive and binding for all purposes, absent manifest error.

     Section 2.24 Funding Losses; Eurocurrency Rate Advances. The Borrowers
shall compensate each Bank, upon its written request to the Borrowers’ Agent,
for all losses, expenses and liabilities (including any interest paid by such
Bank to lenders of funds borrowed by it to make or carry Eurocurrency Rate
Advances to the extent not recovered by such Bank in connection with the
re-employment of such funds and including loss of anticipated profits) which
such Bank may sustain: (i) if for any reason, other than a default by such
Bank, a funding of a Eurocurrency Rate Advance does not occur on the date
specified therefor in the Borrowers’ Agent’s request or notice as to such
Advance, or (ii) if, for whatever reason (including, but not limited to,
acceleration of the maturity of Advances following an Event of Default), any
repayment of a Eurocurrency Rate Advance or a conversion occurs on any day
other than the last day of the Interest Period applicable thereto. Any demand
by any Bank for compensation pursuant to this Section shall be accompanied by a
certificate prepared by such Bank stating in reasonable detail the basis for
such compensation and the method of computation. A Bank’s request for
compensation and any certificate delivered in connection therewith shall set
forth the basis for the amount requested and shall be final, conclusive and
binding, absent error.

     Section 2.25 Discretion of Banks as to Manner of Funding. Each Bank shall
be entitled to fund and maintain its funding of Eurocurrency Rate Advances in
any manner it may elect, it being understood, however, that for the purposes of
this Agreement all determinations hereunder (including, but not limited to,
determinations under Section 2.24) shall be made as if such Bank had actually
funded and maintained each Eurocurrency Rate Advances during the Interest
Period for such Eurocurrency Rate Advance through the issuance of its
certificates of deposit, or the purchase of deposits, having a maturity
corresponding to the last day of the Interest Period and bearing an interest
rate equal to the Eurocurrency Rate or other applicable interest rate for such
Interest Period.

     Section 2.26 Replacement of Certain Banks. If any Bank shall become and
remain (a) a Defaulting Bank or unable to maintain a Eurocurrency Rate Advance
or (b) affected by any of the changes or events described in Sections 2.21,
2.22, 2.23 or 2.24 (any such Bank hereinafter referred to as a “Replaced Bank”)
and shall give notice to the Borrowers for any increased cost or amounts of its
inability to provide Eurocurrency Rate Advances thereunder, the Borrowers may,
so long as no Event of Default has occurred and is continuing, upon at least
five (5) Business Days’ notice to the Agent and such Replaced Bank by the
Borrowers’ Agent, designate a replacement lender (a “Replacement Bank”)
acceptable to the Agent, to which such Replaced Bank shall, subject to its
receipt (unless a later date for the remittance thereof shall be agreed upon by
Borrowers and the Replaced Bank) of all amounts due and owing to such Replaced
Bank under Sections 2.21, 2.23 or 2.24, assign all (but not less than all) of
its rights, obligations, Loans, Revolving Loan Commitment, Term Loan Commitment
and Term Loan Commitment (Foreign Currency) pursuant to an Assignment and
Assumption Agreement in the form of Exhibit 9.6; provided, that all amounts
owed to such Replaced Bank by the Borrowers (except liabilities which by the
terms hereof survive the payment in full of the Loans and termination of this
Agreement) shall be paid in full as of the date of such assignment. Upon any
assignment by any Bank pursuant to this Section becoming effective, the
Replacement Bank shall thereupon be deemed to be a “Bank” for all purposes of
this Agreement and such Replaced Bank shall

47

 

thereupon cease to be a “Bank” for all purposes of this Agreement and
shall have no further rights or obligations hereunder (other than pursuant to
Sections 2.21, 2.22, 2.23 or 2.24 while such Replaced Bank was a Bank).

     Section 2.27 Taxes.

     (a) Any and all payments by the Borrowers hereunder or under the
Notes shall be made free and clear of and without deduction for any and
all present or future taxes, levies, imposts, deductions, charges of
withholdings, and all liabilities with respect thereto, excluding, in the
case of each Bank and the Agent, taxes imposed on its overall net income
and franchise taxes imposed on it in lieu of net income taxes (all such
non-excluded taxes, levies, imposts, deductions, charges, withholdings
and liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as “Taxes”).

     (b) The Borrowers agree to pay any present or future stamp or
documentary taxes or any other excise or property taxes, charges or
similar levies that arise from any payment made hereunder or under the
Notes or from the execution, delivery or registration of, performing
under, or otherwise with respect to, this Agreement or the Notes
(hereinafter referred to as “Other Taxes”).

     (c) The Borrowers shall indemnify each Bank and the Agent for the
full amount of Taxes or Other Taxes imposed on or paid by such Bank or
the Agent and any penalties, interest and expenses with respect thereto.
Payments on this indemnification shall be made within 30 days from the
date such Bank or the Agent makes written demand therefor.

     (d) Within 30 days after the date of any payment of Taxes, the
Borrowers shall furnish to the Agent, at its address referred to on the
signature page hereof a certified copy of a receipt evidencing payment
thereof. In the case of any payment hereunder or under the Notes by or
on behalf of the Borrowers through an account or branch outside the
United States or by or on behalf of the Borrowers by a payor that is not
a United States person, if the Borrowers determine that no Taxes are
payable in respect thereof, the Borrowers shall furnish or shall cause
such payor to furnish, to the Agent, at such address, an opinion of
counsel acceptable to the Agent stating that such payment is exempt from
Taxes. For purposes of this subsection (d) and subsection (e), the terms
“United States” and “United States person” shall have the meanings
specified in Section 7701 of the Internal Revenue Code.

     (e) Each Bank, as of the date it becomes a party hereto, represents
to the Borrowers and the Agent that it is either (i) a corporation
organized under the laws of the United States or any State thereof or
(ii) is entitled to complete exemption from United States withholding tax
imposed on or with respect to any payments, including fees, to be made
pursuant to this Agreement (x) under an applicable provision of a tax
convention to which the United States is a party or (y) because it is
acting through a branch, agency or office in the United States and any
payment to be received by it hereunder is effectively connected with a
trade or business in the United States. Each Bank that is not a United

48

 

States person (as such term is defined in Section 7701(a)(30) of the
Code) shall submit to the Borrowers’ Agent and the Agent, on or before
the day on which such Bank becomes a Bank, a duly completed and signed
copy of either Form W-8BEN or Form W-8ECI of the United States Internal
Revenue Service. Form W-8BEN shall include the Foreign Bank’s United
States taxpayer identification number if required under the current
regulations to claim exemption from withholding pursuant to a tax
convention. Thereafter and from time to time, each such Bank shall
submit to the Borrowers’ Agent and the Agent such additional duly
completed and signed copies of one or the other of such Forms (or such
successor Forms as shall be adopted from time to time by the relevant
United States taxing authorities) as may be (i) reasonably requested by
the Borrowers’ Agent or the Agent and (ii) required and permitted under
then-current United States law or regulations to avoid United States
withholding taxes on payments in respect of all payments to be received
by such Bank hereunder. Upon the request of the Borrowers’ Agent or the
Agent, each Bank that is a United States person (as such term is defined
in Section 7701(a)(30) of the Code) shall submit to the Borrowers’ Agent
and the Agent a certificate on Internal Revenue Service Form W-9 or such
substitute form as is reasonably satisfactory to the Borrowers’ Agent and
the Agent to the effect that it is such a United States person.

     (f) If any Borrower shall be required by law or regulation to make
any deduction, withholding or backup withholding of any taxes, levies,
imposts, duties, fees, liabilities or similar charges of any jurisdiction
(“Withholding Taxes”) from any payments to a Bank pursuant to any Loan
Document in respect of the Obligations payable to such Bank then or
thereafter outstanding, such Borrower shall make such withholdings or
deductions and pay the full amount withheld or deducted to the relevant
taxation authority or other authority in accordance with applicable law.

     (g) Each Bank holding a Loan to a Foreign Currency Borrower
represents to the Borrowers and the Agent that, in the case of a Bank
which is a Bank on the Closing Date and, in the case of a Bank which
becomes a Bank after the Closing Date, on the date it becomes a Bank it
is:

     (A) either:

     (i) not resident in the United Kingdom for United
Kingdom tax purposes and is entitled to receive any payments
under this Agreement without any withholding or deduction for
or on account of Taxes under a double taxation agreement in
force on the date when a payment falls due (subject to the
completion of any necessary procedural formalities which the
Bank will use its best efforts to complete); or

     (ii) a “bank” as defined in section 349 of the Income
and Corporation Taxes Act 1988 in Section 840A of that same
Act and resident in the United Kingdom and is within the
charge to United Kingdom corporation tax as respects any
payment of interest paid under this Agreement;

49

 

and

     (B) beneficially entitled to the principal and interest
payable by the Borrowers to it under this Agreement, and shall
forthwith notify the Borrower Agent and the Agent if either
representation ceases to be correct.

Each Bank that is not funding its Foreign Currency Advance out of an
Applicable Lending Office in the United Kingdom shall promptly submit a
duly completed Form FD13 double tax treaty form to the U.S. Internal
Revenue Service (or the comparable form for its jurisdiction to its
jurisdiction’s tax authorities) seeking exemption from United Kingdom tax
on interest payable under the Loan Documents by any Foreign Currency
Borrower. If such exemption is refused or otherwise is not obtained by
the relevant Bank within 120 days of request therefor by Borrowers’
Agent, no Foreign Currency Borrower has any obligation to such Bank under
Section 2.27(c) of this Agreement with respect to the Taxes that are the
subject to such failed exemption.

ARTICLE III

CONDITIONS PRECEDENT

     Section 3.1 Conditions of Initial Transaction. The making of the Term
Loans and the Term Loans (Foreign Currency) and the initial Revolving Loans and
any Swingline Loans and the issuance of the initial Letter of Credit shall be
subject to the prior or simultaneous fulfillment of the following conditions:

     (a) Events. The following events shall have occurred to the
satisfaction of the Agent and the Syndication Agent:

     (i) the Merger shall have been consummated;

     (ii) the IPO shall have been concluded, with net proceeds to
the Company of not less than $35,000,000;

     (iii) the legal structure of the Company, the Borrowers and
any Subsidiaries shall be satisfactorily organized;

     (iv) the due diligence of the Banks shall have been concluded;
and

     (v) after giving effect to the initial Revolving Loans, there
shall be a minimum availability under the Borrowing Base of not
less than $5,000,000.

     (b) Documents. The Agent shall have received the following in
sufficient counterparts (except for the Notes) for each Bank:

     (i) A Revolving Note and a Term Note and a Term Note (Foreign
Currency) drawn to the order of each Bank executed by a duly
authorized officer (or officers) of the Borrowers and dated the
Closing Date.

50

 

     (ii) The Security Documents duly executed by the respective
parties thereto.

     (iii) A certificate of the Secretary or Assistant Secretary
(or other appropriate officer) of each Borrower dated as of the
Closing Date and certifying as to the following:

     (A) A true and accurate copy of the corporate
resolutions f(or the equivalent) of such Borrower authorizing
the execution, delivery and performance of the Loan Documents
to which the Borrower is a party contemplated hereby and
thereby;

     (B) The incumbency, names, titles and signatures of the
officers of such Borrower authorized to execute the Loan
Documents to which such Borrower is a party and to request
Advances;

     (C) A true and accurate copy of the certificate of
incorporation (or the equivalent) of such Borrower with all
amendments thereto, certified by the appropriate governmental
official of the jurisdiction of its incorporation as of a
date not more than five days prior to the Closing Date; and

     (D) A true and accurate copy of the bylaws (or other
constitutive documents) for such Borrower.

     (iv) Audited financial statements of the Company for the
fiscal years ending December, 2001 through December, 2003,
unaudited financial statements for the Company for the months from
December, 2003 through June, 2004 and management letters from the
Company’s auditors for the fiscal years ending December, 2001
through December, 2003.

     (v) Evidence that the Total Leverage Ratio as of the Closing
Date is not more than 2.75.

     (vi) Evidence that the Company and EBITDA for the 12 months
prior to the Closing Date of not less than $35,000,000.

     (vii) Evidence that the initial Loans will be used to retire
certain existing Indebtedness of the Borrowers.

     (viii) A certificate of good standing for each Borrower in the
jurisdiction of its incorporation certified by the appropriate
governmental official which shall be reasonably prior to the
Closing Date, together with any other information required by the
USA Patriot Act.

     (ix) Such corporate, partnership and other organizational
documents and certificates as the Agent may request with respect to
the due organization,

51

 

good standing, power and authority of any Related Person and
incumbency of officers, partners or other officials thereof.

     (x) A certificate dated the Closing Date of the chief
executive officer or chief financial officer of each Borrower
certifying as to the matters set forth in Sections 3.2 (a) and 3.2
(b) below and to the effect that the Company individually, and
together with all its Subsidiaries on a consolidated basis, is
Solvent.

     (xi) The initial Borrowing Base Certificate required under
Section 5.2 executed by the Chief Financial Officer of the
Borrowers’ Agent.

     (xii) Financing statements for each Borrower executed by a
duly authorized officer (or officers) as required by the Agent.

     (xiii) ACORD 27 certificates of insurance with respect to each
of the businesses and real properties of the Borrowers and their
Subsidiaries in such amounts and with such carriers as shall be
reasonably acceptable to the Agent.

     (c) Opinions. The Borrowers and each Related Person shall have
requested their counsel, to prepare a written opinion, addressed to the
Banks and dated the Closing Date, covering the matters set forth in
Exhibit 3.1(A), and such opinion shall have been delivered to the Agent
in sufficient counterparts for each Bank.

     (d) Security Documents. All Security Documents (or financing
statements with respect thereto) shall have been appropriately filed or
recorded to the satisfaction of the Agent; any pledged collateral shall
have been duly delivered to the Agent; any title insurance required by
the Agent (with endorsements required by the Agent) shall have been
obtained and be satisfactory to the Agent; and the priority and
perfection of the Liens created by the Security Documents shall have been
established to the satisfaction of the Agent and its counsel.

     (e) Other Matters. All corporate and legal proceedings relating to
the Borrowers and the Related Persons and all instruments and agreements
in connection with the transactions contemplated by this Agreement shall
be satisfactory in scope, form and substance to the Agent, the Banks and
the Agent’s special counsel, and the Agent shall have received all
information and copies of all documents, including records of corporate
proceedings, as any Bank or such special counsel may reasonably have
requested in connection therewith, such documents where appropriate to be
certified by proper corporate or governmental authorities.

     (f) Fees and Expenses. The Agent shall have received for itself and
for the account of the Banks all fees and other amounts due and payable
by the Borrowers on or prior to the Closing Date, including the
reasonable fees and expenses of counsel payable pursuant to Section 9.2.

     Section 3.2 Conditions Precedent to all Loans and Letters of Credit. The
obligation of the Banks to make any Loans hereunder (including the Term Loans
and the Term Loans (Foreign Currency) and the initial Revolving Loans) and of
the Agent to issue each Letter of Credit

52

 

(including the initial Letter of Credit) and of U.S. Bank to make
Swingline Loans shall be subject to the fulfillment of the following
conditions:

     (a) Representations and Warranties. The representations and
warranties contained in Article IV shall be true and correct in all
material respects on and as of the Closing Date and on the date of each
Revolving Loan or Swingline Loan or on the date of issuance of each
Letter of Credit, with the same force and effect as if made on such date
except to the extent such representations and warranties relate to a
prior date.

     (b) No Default. No Default or Event of Default shall have occurred
and be continuing on the Closing Date and on the date of each Revolving
Loan or Swingline Loan or the date of issuance of each Letter of Credit
or will exist after giving effect to the Loans made on such date or the
Letter of Credit so issued.

     (c) Notices and Requests. The Agent shall have received the
Borrowers’ Agent’s request for such Loans as required under Section 2.2
or its application for such Letters of Credit specified under Section
2.9.

     Section 3.3 Initial Advance to Each New Subsidiary Borrower. The Banks
shall not be required to make any Advance hereunder, or issue any Letter of
Credit, in each case, to or with respect to any Subsidiary Borrower added after
the Closing Date unless the Company or such Subsidiary Borrower has furnished
or caused to be furnished to the Agent with sufficient copies for the Banks:

     (a) The Assumption Letter executed and delivered by such Subsidiary
Borrower and containing the written consent of the Company thereon, in
form and substance satisfactory to the Agent;

     (b) [Reserved]

     (c) Copies of the articles or certificate of incorporation (or the
equivalent thereof) of such Subsidiary Borrower, together with all
amendments, and a certificate of good standing (or the equivalent
thereof), each certified by the appropriate governmental officer in its
jurisdiction of organization, as well as any other information required
by the USA PATRIOT Act, as determined by the Agent;

     (d) Copies, certified by the Secretary or Assistant Secretary (or
the equivalent thereof) of such Subsidiary Borrower, of its by-laws (or
the equivalent thereof) and of its Board of Directors’ (or the equivalent
thereof) resolutions and of resolutions or actions of any other body
authorizing the execution of the Assumption Letter and the other Loan
Documents to which such Subsidiary Borrower is a party;

     (e) An incumbency certificate, executed by the Secretary or
Assistant Secretary (or the equivalent thereof) of such Subsidiary
Borrower, which shall identify by name and title and bear the signature
of the officers of such Subsidiary Borrower authorized to sign the
Assumption Letter and the other Loan Document to which such Subsidiary
Borrower is a party, upon which certificate the Agent and the Banks shall
be entitled to rely until informed of any change in writing by such
Subsidiary Borrower;

53

 

     (f) An opinion of counsel to such Subsidiary Borrower in a form
reasonably acceptable to the Agent and its counsel;

     (g) Notes payable to each of the Banks; and

     (h) Such other instruments, documents or agreements as the Agent may
reasonably request in connection with the addition of such Subsidiary
Borrower, all in form and substance reasonably satisfactory to the Agent.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     The Borrowers represent and warrant to the Agent and each Bank that the
following are, and after giving effect to the Related Transactions will be,
true, correct and complete:

     Section 4.1 Corporate Existence and Power. Each of the Borrowers and its
Subsidiaries:

     (a) is a corporation, limited liability company or limited
partnership, as applicable, duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
formation, as applicable;

     (b) has the power and authority and all governmental licenses,
authorizations, consents and approvals to (i) own its assets and carry on
its business and (ii) execute, deliver, and perform its obligations
under, the Loan Documents and the Related Agreements to which it is a
party;

     (c) is duly qualified as a foreign corporation, limited liability
company or limited partnership, as applicable, and licensed and in good
standing, under the laws of each jurisdiction where its ownership, lease
or operation of Property or the conduct of its business requires such
qualification or license; and

     (d) is in compliance with all Requirements of Law;

except, in each case referred to in clause (a) (solely with respect to Excluded
Subsidiaries), clause (b)(i), clause (c) or clause (d) of this Section 4.1, to
the extent that the failure to do so would not reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect.

     Section 4.2 Corporate Authorization; No Contravention.

     (a) The execution, delivery and performance by the Borrowers of this
Agreement, and the Borrowers and their Subsidiaries of any other Loan
Document and Related Agreement to which such Person is party, have been
duly authorized by all necessary action, and do not and will not:

54

 

     (i) contravene the terms of any of that Person’s Organization
Documents;

     (ii) conflict with or result in any material breach or
contravention of, or result of the creation of any Lien under, any
document evidencing any material Contractual Obligation to which
such Person is a party or any order, injunction, writ or decree of
any Governmental Authority to which such Person or its Property is
subject; or

     (iii) violate any material Requirement of Law in any material
respect.

     (b) Schedule 4.2 sets forth the authorized Equity Interests of each
of the Borrowers and their Subsidiaries, as of the Closing Date, after
giving effect to the IPO. All issued and outstanding Equity Interests of
each of the Borrowers and their Subsidiaries are duly authorized and
validly issued, fully paid, non-assessable, and free and clear of all
Liens other than Permitted Liens, and such securities were issued in
compliance with all applicable state, federal and foreign laws concerning
the issuance of securities. All of the issued and outstanding Equity
Interests of the Subsidiary Borrowers, the Foreign Subsidiaries and all
of their respective Subsidiaries are owned by the Persons and in the
amounts set forth on Schedule 4.2. Except as set forth on Schedule 4.2,
there are no pre-emptive or other outstanding rights, options, warrants,
conversion rights or other similar agreements or understandings for the
purchase or acquisition of any shares of capital stock or other
securities of any such entity, other than those required by applicable
law.

     (c) Prior to the Closing Date, the Merger has been consummated and
become effective in accordance with applicable law.

     (d) As of the Closing Date, the IPO has been successfully concluded.

     Section 4.3 Governmental Authorization. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any
Governmental Authority is necessary or required in connection with the
execution, delivery or performance by, or enforcement against the Borrowers or
any of their Subsidiaries of this Agreement, any other Loan Document or Related
Agreement except (a) for recordings and filings in connection with the Liens
granted to the Agent under the Security Documents, (b) those obtained or made
on or prior to the Closing Date, (c) those required in connection with the
exercise of remedies under the Loan Documents and (d) in the case of any
Related Agreement, those which, if not obtained or made, could not reasonably
be expected to have, either individually or in the aggregate, a Material
Adverse Effect.

     Section 4.4 Binding Effect. This Agreement and each other Loan Document
and Related Agreement to which the Borrowers or any of their Subsidiaries is a
party constitute the legal, valid and binding obligations of the Borrowers and
each Subsidiary which is a party thereto, enforceable against such Person in
accordance with their respective terms, except as enforceability may be limited
by (a) applicable bankruptcy, insolvency, or similar laws affecting the
enforcement of creditors’ rights generally or by equitable principles relating
to enforceability

55

 

or (b) in respect of Foreign Currency Borrowers, due to the time barring
of claims under limitation acts in England, in connection with defenses or
set-off or counterclaim under English law or the possibility that an
undertaking to assume liability for or indemnify a person against non-payment
of stamp duty (such as under Section 9.5) may be void under English law.

     Section 4.5 Litigation. Except as specifically disclosed in Schedule 4.5,
as of the Closing Date, there are no actions, suits, proceedings, claims or
disputes pending, or to the knowledge of the Borrowers, threatened or
contemplated, at law, in equity, in arbitration or before any Governmental
Authority, against the Borrowers or their Subsidiaries or any of their
respective Properties which:

     (a) purport to affect or pertain to this Agreement, any other Loan
Document or Related Agreement, or any of the transactions contemplated
hereby or thereby; or

     (b) if determined adversely to Borrower or any of the Borrowers’
Subsidiaries, could reasonably be expected to have a Material Adverse
Effect.

No injunction, writ, temporary restraining order or any order of any nature has
been issued by any court or other Governmental Authority purporting to enjoin
or restrain the execution, delivery or performance of this Agreement, any other
Loan Document or any Related Agreement, or directing that the transactions
provided for herein or therein not be consummated as herein or therein
provided.

     Section 4.6 No Default. As of the Closing Date, neither the Borrowers nor
any of their Subsidiaries are in default under or with respect to any
Contractual Obligation in any respect which, individually or together with all
such defaults, would reasonably be expected to have a Material Adverse Effect.

     Section 4.7 ERISA Compliance.

     (a) Schedule 4.7 lists all Qualified Plans and Multiemployer Plans.
The Borrower and each of its Subsidiaries is in compliance in all
material respects with all requirements of each Plan, and each Plan
complies in all material respects, and is operated in compliance in all
material respects, with all applicable provisions of law. The Borrower
is not aware of any item of non-compliance which would reasonably be
expected to result in the loss of Plan qualification or tax-exempt
status, or give rise to a material excise tax or other penalty imposed by
a Governmental Authority. No material proceeding, claim, lawsuit and/or
investigation is pending concerning any Plan. All required contributions
have been and will be made in accordance with the provisions of each
Qualified Plan and Multiemployer Plan, and with respect to the Borrowers
or any ERISA Affiliate, there are, have been and will be no material
Unfunded Pension Liabilities or Withdrawal Liabilities.

     (b) No ERISA Event has occurred or is expected to occur with respect
to any Qualified Plan, Multiemployer Plan or Plan.

56

 

     (c) Members of the Controlled Group currently comply and have
complied in all material respects with the notice and continuation
coverage requirements of Section 4980B of the Code.

     Section 4.8 Use of Proceeds; Margin Regulations. The proceeds of the
Loans are intended to be and shall be used solely for the purposes set forth in
and permitted by Section 5.10, and are intended to be and shall be used in
compliance with Section 5.10. None of the Borrowers or any of their
Subsidiaries is generally engaged in the business of purchasing or selling
Margin Stock or extending credit for the purpose of purchasing or carrying
Margin Stock. Proceeds of the Loans shall not be used for the purpose of
purchasing or carrying Margin Stock.

     Section 4.9 Title to Properties. The Borrowers and each of their
Subsidiaries have good record and marketable title in fee simple to, or valid
leasehold interests in, all real Property, and good and valid title to all
owned personal property and valid leasehold interests in all leased personal
property, in each instance, necessary in the ordinary conduct of their
respective businesses, subject to Permitted Liens. The Property of the
Borrowers and their Subsidiaries is subject to no Liens, other than Permitted
Liens.

     Section 4.10 Taxes. Except as set forth on Schedule 4.10, the Borrowers
and their Subsidiaries have filed all federal and other material tax returns
and reports required to be filed, and have paid all federal and other material
taxes, assessments, fees and other governmental charges levied or imposed upon
them or their Properties, income or assets otherwise due and payable, except
those which are being contested in good faith by appropriate proceedings
diligently prosecuted and for which adequate reserves have been provided in
accordance with GAAP and the Borrowers have not received written notice of, and
no Responsible Officer of the Borrowers has knowledge of, the recording or
filing of any Lien. There is no proposed tax assessment against the Borrowers
or any of their Subsidiaries which would, if the assessment were made, either
individually or in the aggregate, have a Material Adverse Effect.

     Section 4.11 Financial Condition.

     (a) Each of (i) the audited consolidated balance sheet of the
Borrowers and their Subsidiaries dated December 31, 2003, and the related
audited consolidated statements of income or operations, shareholders’
equity and cash flows for the fiscal year ended on that date and (ii) the
unaudited interim consolidated balance sheet of the Borrowers and their
Subsidiaries dated June 30, 2004 and the related unaudited consolidated
statements of income, shareholders’ equity and cash flows for the six (6)
months then ended:

     (x) were prepared in accordance with GAAP consistently applied
throughout the respective periods covered thereby, except as
otherwise expressly noted therein, subject to, in the case of the
unaudited interim financial statements, normal year-end adjustments
and the lack of footnote disclosures; and

     (y) present fairly in all material respects the consolidated
financial condition of the Borrowers and their Subsidiaries as of
the dates thereof and results of operations for the periods covered
thereby.

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     (b) For the period from June 30, 2004 through the Closing Date,
there has been no Material Adverse Effect.

     (c) the Borrowers and their Subsidiaries have no Indebtedness other
than Indebtedness permitted pursuant to Section 6.5 and have no
Contingent Obligations other than Contingent Obligations permitted
pursuant to Section 6.9.

     (d) All financial performance projections delivered to the Agent
were prepared by the Company in good faith and are based on assumptions
believed by the Company to be reasonable when made, it being recognized
by the Agent and the Banks, however, that projections as to future events
are not to be viewed as facts and that the actual results during the
period or periods covered by said projections may differ from the
projected results.

     Section 4.12 Environmental Matters. Except as described on Schedule 4.12:

     (a) The on-going operations of the Borrowers and each of their
Subsidiaries comply in all respects with all Environmental Laws, except
for such non-compliance which would not (if enforced in accordance with
applicable law) reasonably be expected to result in, either individually
or in the aggregate, a Material Adverse Effect.

     (b) The Borrowers and each of their Subsidiaries have obtained all
licenses, permits, authorizations and registrations required under any
Environmental Law (“Environmental Permits”) and necessary for their
respective Ordinary Courses of Business, all such Environmental Permits
are in good standing and in full force and effect, and the Borrower and
each of its Subsidiaries are in compliance with all material terms and
conditions of such Environmental Permits, except where the failure to
obtain, to maintain in good standing and in full force and effect, or to
be in compliance with such Environmental Permits would not reasonably be
expected to result in material liability to the Borrower or any of its
Subsidiaries and would not reasonably be expected to result in, either
individually or in the aggregate, a Material Adverse Effect.

     (c) None of the Borrowers, any of their Subsidiaries or any of their
respective present Property or operations, is subject to any outstanding
written order from or agreement with any Governmental Authority, or
subject to any judicial or docketed administrative proceeding, respecting
any Environmental Law, Environmental Claim or Hazardous Material, which
would reasonably be expected to result in, either individually or in the
aggregate, a Material Adverse Effect.

     (d) There are no Hazardous Materials or other conditions or
circumstances regulated under Environmental Laws existing with respect to
any Property, or arising from operations prior to the Closing Date, of
the Borrowers or any of their Subsidiaries that would reasonably be
expected to result, either individually or in the aggregate, in a
Material Adverse Effect. In addition, neither the Borrowers nor any of
their Subsidiaries have any underground storage tanks (i) that are not
properly registered or permitted under

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applicable Environmental Laws, or (ii) that are leaking or disposing
of Hazardous Materials, which would reasonably be expected to result in a
Material Adverse Effect.

     Section 4.13 Security Documents. All representations and warranties of
the Borrowers, any of their Subsidiaries or, to the knowledge of the Borrowers,
any other party to any Security Document (other than the Agent and/or any Bank)
contained in the Security Documents are true and correct in all material
respects, except to the extent that such representation or warranty relates to
a specific date, in which case such representation and warranty shall be true
as of such earlier date.

     Section 4.14 Regulated Entities. None of the Borrowers or any of their
Subsidiaries of the Borrower is (a) an “investment company” within the meaning
of the Investment Company Act of 1940 which is required to be registered
thereunder; or (b) subject to regulation under the Public Utility Holding
Company Act of 1935, the Federal Power Act, the Interstate Commerce Act, any
state public utilities code, or any other foreign, federal or state statute or
regulation limiting its ability to incur Indebtedness.

     Section 4.15 Solvency. The Borrowers and their Subsidiaries, on a
consolidated basis, are Solvent.

     Section 4.16 Labor Relations. There are no strikes, lockouts or other
labor disputes against the Borrowers or any of their Subsidiaries, or, to the
Borrowers’ knowledge, threatened against or affecting the Borrowers or any of
their Subsidiaries, in any case which would reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect and no
significant unfair labor practice complaint is pending against the Borrowers or
any of their Subsidiaries or, to the knowledge of the Borrowers, threatened
against any of them before any Governmental Authority in any case which would
reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect.

     Section 4.17 Copyrights, Patents, Trademarks and Licenses, etc. Schedule
4.17 identifies all United States and foreign patents, registered trademarks,
service marks, trade names and registered copyrights, and all registrations and
applications for registration thereof and all licenses thereof, owned or held
by any Borrowers or any of their Subsidiaries on the Closing Date after giving
effect to the Related Transactions, and identifies the jurisdictions in which
such registrations and applications have been filed. Except as otherwise
disclosed in Schedule 4.17, as of the Closing Date, the Borrowers and their
Subsidiaries are the sole beneficial owners of, or have the right to use, free
from any restrictions, claims, rights encumbrances or burdens, the intellectual
property identified on Schedule 4.17 and all other processes, designs,
formulas, computer programs, computer software packages, trade secrets,
inventions, product manufacturing instructions, technology, research and
development, know-how and all other intellectual property that are necessary
for the operation of the Borrowers’ and their Subsidiaries’ businesses as being
operated on the Closing Date after giving effect to the Related Transactions.
Each patent, trademark, service mark, trade name, copyright and license listed
on Schedule 4.17 is in full force and effect except to the extent the failure
to be in effect will not and would not reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect. Except as set
forth in Schedule 4.17, to the best knowledge of the Borrowers, as of the
Closing Date (a) none of the products or operations of the Borrowers or their
Subsidiaries

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infringe any patent, trademark, service mark, trade name, copyright,
license of intellectual property or other right owned by any other Person, and
(b) there is no pending or threatened claim or litigation against or affecting
any Borrower or any of their Subsidiaries contesting the right of any of them
to manufacture, process, sell or use any such product or to engage in any such
operation except for claims and/or litigation which will not and could not
reasonably be expected to have a Material Adverse Effect. None of the
trademark registrations set forth on Schedule 4.17 is an “intent-to-use”
registration.

     Section 4.18 Subsidiaries. The Borrowers have no Subsidiaries or equity
investments in any other corporation or entity other than (a) those existing on
the Closing Date and specifically disclosed in Schedule 4.2 or (b) those
established or created after the Closing Date in accordance with subsection
6.4(k) with respect to which the Borrowers have complied with all of the
requirements of Section 4.12.

     Section 4.19 Brokers’ Fees; Transaction Fees. Other than as set forth on
Schedule 4.19, neither the Borrowers nor any of their Subsidiaries has any
obligation to any Person in respect of any finder’s, broker’s or investment
banker’s fee in connection with the transactions contemplated hereby.

     Section 4.20 Insurance. The Borrowers and each of their Subsidiaries and
their respective Properties are insured with reputable insurance companies
which are not Affiliates of the Borrower, in such amounts, with such
deductibles and covering such risks as are customarily carried by similarly
situated companies engaged in similar businesses and owning similar Properties
in localities where such Borrower or such Subsidiary operates. A materially
true and complete listing of such insurance, including issuers, coverages and
deductibles, has been provided to the Agent.

     Section 4.21 Full Disclosure. None of the representations or warranties
made by any Borrower or any of their Subsidiaries in the Loan Documents as of
the date such representations and warranties are made or deemed made, and none
of the statements contained in each exhibit, report, statement or certificate
(other than projections and budgets) furnished by or on behalf of any Borrower
or any of their Subsidiaries in connection with the Loan Documents (including
the offering and disclosure materials, if any, delivered by or on behalf of the
Borrowers to the Banks prior to the Closing Date), contains any untrue
statement of a material fact or omits any material fact required to be stated
therein or necessary to make the statements made therein, in light of the
circumstances under which they are made, not materially misleading as of the
time when made or delivered.

     Section 4.22 Foreign Assets Control Regulations and Anti-Money Laundering.

     (a) OFAC. None of the Borrowers or any of their Subsidiaries (i) is
a person whose property or interest in property is blocked or subject to
blocking pursuant to Section 1 of Executive Order 13224 of September 23,
2001 Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079
(2001)), (ii) engages in any dealings or transactions prohibited by
Section 2 of such executive order, or is otherwise, to the knowledge of a
Responsible Officer of a Borrower, associated with any such person in any
manner

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violative of Section 2, or (iii) is a person on the list of
Specially Designated Nationals and Blocked Persons or subject to the
limitations or prohibitions under any other U.S. Department of Treasury’s
Office of Foreign Assets Control regulation or executive order.

     Section 4.23 USA Patriot Act. The Borrowers and each of their
Subsidiaries are in compliance, in all material respects, with the USA Patriot
Act. No part of the proceeds of the Advances will be used, directly or
indirectly, for any payments to any governmental official or employee,
political party, official of a political party, candidate for political office,
or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United
States Foreign Corrupt Practices Act of 1977, as amended.

     Section 4.24 Dormant Subsidiaries. Except for Dormant Subsidiaries for
which the Borrower’s Agent has given to the Agent a notice of the type
specified in Section 5.2(i), no Dormant Subsidiary has any business operations
or any material assets or liabilities.

ARTICLE V

AFFIRMATIVE COVENANTS

     Until all obligations of the Banks hereunder to make the Term Loans and
the Term Loans (Foreign Currency) and Revolving Loans and of the Letter of
Credit Bank to issue Letters of Credit shall have expired or been terminated
and the Notes and all of the other Obligations (other than inchoate indemnity
obligations) have been paid in full and all outstanding Letters of Credit shall
have expired or the liability of the Letter of Credit Bank thereon shall have
otherwise been discharged (other than inchoate indemnity obligations), unless
the Letter of Credit Bank and the Required Banks shall otherwise consent in
writing:

     Section 5.1 Financial Statements. The Company shall maintain, and shall
cause the Borrowers and each of their Subsidiaries to maintain, a system of
accounting established and administered in accordance with sound business
practices to permit the preparation of financial statements (including
consolidated financial statements) in conformity with GAAP (provided that in
the case of Foreign Subsidiaries, generally accepted accounting principles in
the jurisdiction of organization of such Foreign Subsidiary are satisfactory
for unconsolidated financial statements provided with respect to such Foreign
Subsidiary, but not for consolidated financial statements) (provided further
that, in each case, monthly financial statements shall not be required to have
footnote disclosure and are subject to normal year-end adjustments). The
Company shall deliver to the Agent and in form and detail reasonably
satisfactory to the Agent:

     (a) as soon as available, but not later than ninety (90) days after
the end of each fiscal year, a copy of the audited consolidated balance
sheets of the Company as at the end of such year and the related
consolidated statements of income or operations, shareholders’ equity and
cash flows for such fiscal year, setting forth in each case in
comparative form the figures for the previous fiscal year, and
accompanied by the unqualified opinion of any “Big Four” or other
nationally-recognized independent public accounting firm or otherwise
reasonably acceptable to the Agent which report shall state that such
consolidated financial statements present fairly in all material respects
the

61

 

financial position for the periods indicated in conformity with GAAP
applied on a basis consistent with prior years.

     (b) as soon as available, but not later than thirty (30) days after
the end of each fiscal month of each year (except 45 days after the end
of each December), a copy of the unaudited consolidated balance sheets of
the Company, the Borrowers and each of their Subsidiaries, and the
related consolidated statements of income, shareholders’ equity and cash
flows as of the end of such month and for the portion of the fiscal year
then ended, all certified on behalf of the Company by an appropriate
Responsible Officer as being complete and correct in all material
respects and fairly presenting in all material respects, in accordance
with GAAP, the financial position and the results of operations of the
Borrowers and their Subsidiaries, subject to normal year-end adjustments
and absence of footnote disclosure.

     Section 5.2 Certificates; Borrowing Base Certificates; Other Information.
The Company shall furnish to the Agent:

     (a) concurrently with the delivery of the financial statements
referred to in Section 5.1(a) and, in the case of such financial
statement for its last month of the first three fiscal quarters of any
fiscal year, Section 5.1(b) above, a fully and properly completed
Compliance Certificate in the form of Exhibit 5.2(a), certified on behalf
of the Company by a Responsible Officer;

     (b) promptly after the same are sent, copies of all financial
statements and reports which the Company sends to its shareholders or
other equity holders, as applicable, generally; and promptly after the
same are filed, copies of all financial statements and regular, periodic
or special reports which the Company may make to, or file with, the
Securities and Exchange Commission or any successor or similar
Governmental Authority;

     (c) as soon as available and in any event within 20 days after the
end of each calendar month, and, following the occurrence and during the
continuance of an Event of Default, at such other times as the Agent may
reasonably require, a Borrowing Base Certificate, certified on behalf of
the Company by a Responsible Officer, setting forth the Borrowing Base of
the Borrowers as at the end of the most-recently ended calendar month or,
following the occurrence and during the continuance of an Event of
Default, at such other date or dates as the Agent may require;

     (d) together with each delivery of financial statements pursuant to
subsection 5.1(a) and subsection 5.1(b) for the last calendar month of
each fiscal quarter (i) a management report, in reasonable detail, signed
by a Responsible Officer of the Company, describing the operations and
financial condition of the Borrowers and their Subsidiaries for the month
and the portion of the fiscal year then ended (or for the fiscal year
then ended in the case of annual financial statements), and (ii) a report
setting forth in comparative form the corresponding figures for the
corresponding periods of the previous fiscal year and the corresponding
figures from the most recent projections for

62

 

the current fiscal year delivered pursuant to subsection 5.2(f) and
discussing the reasons for any significant variations;

     (e) upon the request of the Agent, at any time if an Event of
Default shall have occurred and be continuing but otherwise not more
often than once each year, the Company will obtain and deliver to the
Agent a report of an independent collateral auditor reasonably
satisfactory to the Agent with respect to the Accounts and Inventory,
which report shall indicate whether or not the information set forth in
the Borrowing Base Certificate most recently delivered is accurate and
complete in all material respects;

     (f) as soon as available and in any event no later than thirty (30)
days after the last day of each fiscal year of the Company, projections
of the Company’s (and its Subsidiaries’) consolidated financial
performance for the then current fiscal year, and for the forthcoming
fiscal year on a month by month basis;

     (g) promptly upon receipt thereof, copies of any reports submitted
by the Company’s certified public accountants in connection with each
annual, interim or special audit or review of any type of the financial
statements or internal control systems of the Company made by such
accountants, including any comment letters submitted by such accountants
to management of the Company in connection with their services;

     (h) from time to time, if the Agent determines that obtaining
appraisals is necessary in order for the Agent or any Bank to comply with
applicable laws or regulations, and at any time if an Event of Default
shall have occurred and be continuing, the Agent may, or may require the
Company to, in either case at the Company’s expense, obtain appraisals in
form and substance and from appraisers reasonably satisfactory to the
Agent stating then current fair market value of all or any portion of the
real or personal property of the Borrowers or any of their Subsidiaries;

     (i) within ten (10) Business Days of any Dormant Subsidiary having
any business operations or any material assets or liabilities, written
notice of such event; and

     (j) promptly, such additional business, financial, corporate
affairs, perfection certificates and other information as the Agent may
from time to time reasonably request.

     Section 5.3 Notices. The Company shall notify promptly the Agent and each
Bank of each of the following (and in no event later than five (5) Business
Days after a Responsible Officer becoming aware thereof):

     (a) the occurrence or existence of any Default or Event of Default;

     (b) any breach or non-performance of, or any default under, any
Contractual Obligation of any Borrower or any of its Subsidiaries, or any
violation of, or non-compliance with, any Requirement of Law, which would
reasonably be expected to result, either individually or in the
aggregate, in a Material Adverse Effect, including a description of such
breach, non-performance, default, violation or non-compliance and the
steps, if any, such Borrower or such Subsidiary has taken, is taking or
proposes to take in respect thereof;

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     (c) any dispute, litigation, investigation, proceeding or suspension
which may exist at any time between a Borrower or any of its Subsidiaries
and any Governmental Authority which would reasonably be expected to
result, either individually or in the aggregate, in a Material Adverse
Effect;

     (d) the commencement of, or any material development in, any
litigation or proceeding affecting a Borrower or any of its Subsidiaries
(i) which, if adversely determined, would reasonably be expected to have
a Material Adverse Effect, or (ii) in which the relief sought is an
injunction or other stay of the performance of this Agreement, any Loan
Document or any Related Agreement;

     (e) any of the following if the same would reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect:
(i) any enforcement, cleanup, removal or other governmental or regulatory
actions instituted, completed or threatened against the Borrowers or any
of their Subsidiaries or any of their respective Properties pursuant to
any applicable Environmental Laws, (ii) any other Environmental Claims,
and (iii) any environmental or similar condition on any real property
adjoining the Property of a Borrower or any Subsidiary of a Borrower that
could reasonably be anticipated to cause such Borrower’s or such
Subsidiary’s Property or any part thereof to be subject to any material
restrictions on the ownership, occupancy, transferability or use of such
Property under any Environmental Laws;

     (f) any of the following if the same would reasonably be expected to
have, either individually or in the aggregate, a Material Adverse Effect,
together with a copy of any notice with respect to such event that may be
required to be filed with a Governmental Authority and any notice
delivered by a Governmental Authority to the Borrower or any member or
its Controlled Group with respect to such event:

     (i) an ERISA Event;

     (ii) the adoption of any new Qualified Plan that is subject to
Title IV of ERISA or Section 412 of the Code by any member of the
Controlled Group;

     (iii) the adoption of any amendment to a Qualified Plan that
is subject to Title IV of ERISA or Section 412 of the Code, if such
amendment results in a material increase in benefits or unfunded
liabilities; or

     (iv) the commencement of contributions by any member of the
Controlled Group to any Multiemployer Plan or any Qualified Plan
that is subject to Title IV of ERISA or Section 412 of the Code;

     (g) any Material Adverse Effect subsequent to the date of the most
recent audited financial statements of the Company, the Borrowers or any
of their Subsidiaries delivered to the Agent and the Banks pursuant to
this Agreement;

     (h) any material change in accounting policies or financial
reporting practices by the Company, any Borrower or any of their
Subsidiaries;

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     (i) any labor controversy resulting in or threatening to result in
any strike, work stoppage, boycott, shutdown or other labor disruption
against or involving a Borrower or any of its Subsidiaries if the same
would reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect; and

     (j) the creation, establishment or acquisition of any Subsidiary or
the issuance by a Borrower of any capital stock or warrant option or
similar agreement in respect thereof.

Each notice pursuant to this Section shall be accompanied by a written
statement by a Responsible Officer on behalf of the Company setting forth
details of the occurrence referred to therein, and stating what action the
Company proposes to take with respect thereto and at what time. Each notice
under subsection 5.3(a) shall describe with particularity any and all clauses
or provisions of this Agreement or other Loan Document that have been breached
or violated.

     Section 5.4 Preservation of Corporate Existence, Etc. The Borrowers
shall, and shall cause each of their Subsidiaries to:

     (a) preserve and maintain in full force and effect its
organizational existence and good standing under the laws of its state or
jurisdiction of incorporation, organization or formation, as applicable,
except, with respect to the Borrowers’ Subsidiaries, in connection with
transactions permitted by Section 6.3;

     (b) preserve and maintain in full force and effect all rights,
privileges, qualifications, permits, licenses and franchises necessary in
the normal conduct of its business except in connection with transactions
permitted by Section 6.3 and sales of assets permitted by Section 6.2 and
except as would not reasonably be expected to have, either individually
or in the aggregate, a Material Adverse Effect;

     (c) use its reasonable efforts, in the Ordinary Course of Business
and in its reasonable business judgment, to preserve its business
organization and preserve the goodwill and business of the customers,
suppliers and others having material business relations with it; and

     (d) preserve or renew all of its registered trademarks, trade names
and service marks, the non-preservation of which would reasonably be
expected to have, either individually or in the aggregate, a Material
Adverse Effect.

     Section 5.5 Maintenance of Property. The Borrowers shall maintain, and
shall cause each of their Subsidiaries to maintain, and preserve all its
Property which is necessary in its business in good working order and
condition, ordinary wear and tear and casualty excepted and shall make all
necessary repairs thereto and renewals and replacements thereof except where
the failure to do so would not reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect.

     Section 5.6 Insurance. The Borrowers shall maintain, and shall cause each
of their Subsidiaries to maintain, with reputable independent insurers,
insurance with respect to its Properties and business against loss or damage of
the kinds customarily insured against by

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similarly situated Persons engaged in the same or similar business, of
such types and in such amounts as are customarily carried under similar
circumstances by such other Persons, including workers’ compensation insurance,
public liability and Property and casualty insurance, which amounts shall not
be reduced by a Borrower or any of its Subsidiaries in the absence of thirty
(30) days’ prior notice to the Agent and business interruption insurance in an
amount not less than $5,000,000. All Property damage and casualty insurance
shall name the Agent as loss payee/mortgagee, all liability insurance shall
name the Agent, for the benefit of the Banks as additional insured and all
business interruption insurance shall name the Agent as assignee. Upon request
of the Agent or any Bank, the Company shall furnish the Agent at reasonable
intervals (but not more than once per calendar year) a certificate of a
Responsible Officer on behalf of the Company (and, if requested by the Agent,
any insurance broker of the Company) setting forth the nature and extent of all
insurance maintained by the Borrowers and their Subsidiaries in accordance with
this Section 5.6. In the event that the Agent requests from the Company
evidence of the insurance coverage required by this Agreement, and the Company
fails to deliver such evidence within two Business Days following such request,
the Agent may purchase insurance at the Borrowers’ expense to protect the
Agent’s and Banks’ interests in the Borrowers’ and their Subsidiaries’
Properties. This insurance may, but need not, protect the Borrowers’ and their
Subsidiaries’ interests. The coverage that the Agent purchases may not pay any
claim that a Borrower or any Subsidiary of a Borrower makes or any claim that
is made against a Borrower or any Subsidiary in connection with said Property.
The Borrowers may later cancel any insurance purchased by the Agent, but only
after providing the Agent with evidence that such Borrower has obtained
insurance as required by this Agreement. If the Agent purchases insurance, the
Borrowers will be responsible for the costs of that insurance, including
interest and any other charges the Agent may impose in connection with the
placement of insurance, until the effective date of the cancellation or
expiration of the insurance. The costs of the insurance shall be added to the
Obligations. The costs of the insurance may be more than the cost of insurance
the Borrowers may be able to obtain on their own.

     Section 5.7 Payment of Obligations. The Borrowers shall, and shall cause
their Subsidiaries to, pay, discharge and perform as the same shall become due
and payable or required to be performed, all their respective obligations and
liabilities, including:

     (a) all material tax liabilities, assessments and governmental
charges or levies upon it or its properties or assets, unless the same
are being contested in good faith by appropriate proceedings diligently
prosecuted which stay the enforcement of any Lien and for which adequate
reserves in accordance with GAAP are being maintained by such Borrower or
such Subsidiary;

     (b) all lawful claims which, if unpaid, would by law become a Lien
(other than a Permitted Lien) upon its Property unless the same are being
contested in good faith by appropriate proceedings diligently prosecuted
which stay the imposition or enforcement of the Lien and for which
adequate reserves in accordance with GAAP are being maintained by the
Borrowers;

     (c) all Indebtedness, as and when due and payable, but subject to
any subordination provisions contained herein and/or in any instrument or
agreement

66

 

evidencing such Indebtedness, except to the extent such non-payment
would not result in an Event of Default under subsection 7.1(e) below;
and

     (d) the performance of all obligations under any Contractual
Obligation to which a Borrower or any of its Subsidiaries is bound, or to
which it or any of its properties is subject, including the Related
Agreements, except where the failure to perform would not reasonably be
expected to have, either individually or in the aggregate, a Material
Adverse Effect.

     Section 5.8 Compliance with Laws. The Borrowers shall comply, and shall
cause each of their Subsidiaries to comply, in all material respects, with all
Requirements of Law of any Governmental Authority having jurisdiction over it
or its business (including, without limitation, all Environmental Laws), except
(a)(i) such as may be contested in good faith by appropriate proceedings
diligently prosecuted without risk of loss of any Collateral, (ii) as to which
a bona fide dispute exists, and (iii) for which appropriate reserves have been
established on the Borrower’s financial statements or (b) where the failure to
comply would not reasonably be expected to have, either individually or in the
aggregate, a Material Adverse Effect.

     Section 5.9 Inspection of Property and Books and Records. The Borrowers
shall maintain and shall cause each of their Subsidiaries to maintain proper
books of record and account, in which true and correct entries, in all material
respects, in conformity with GAAP (or the equivalent in the foreign country
where such Borrower or Subsidiary has its principal place of business)
consistently applied shall be made of all material financial transactions and
matters involving the assets and business of the Borrowers and such
Subsidiaries. The Borrowers shall permit, and shall cause each of their
Subsidiaries to permit, representatives and independent contractors of the
Agent (at the expense of the Borrowers provided that the Borrowers shall be
responsible for such expenses not more than one (1) time per year unless an
Event of Default has occurred and is continuing), or the Required Bank (at the
Required Bank’s expense unless an Event of Default shall have occurred and be
continuing), to visit and inspect any of their respective Properties, to
examine their respective corporate, financial and operating records, and make
copies thereof or abstracts therefrom, and to discuss their respective affairs,
finances and accounts with their respective directors, officers, and
independent public accountants, at such reasonable times during normal business
hours and as often as may be reasonably desired, upon reasonable advance notice
to such Borrower; provided, however, a Responsible Officer of such Borrower
shall be afforded the opportunity to attend any discussions with any
independent public accountants and, provided, further, when an Event of Default
exists the Agent or any Bank may do any of the foregoing at the expense of the
Borrowers at any time during normal business hours and without advance notice.

     Section 5.10 Use of Proceeds. The Borrowers shall use the proceeds of the
Loans solely as follows: (a) to refinance certain Indebtedness, (b) to pay
costs and expenses of the Related Transactions and costs and expenses required
to be paid pursuant to Section 3.1(f), and (c) for working capital and other
general corporate purposes not in contravention of any Requirement of Law and
not in violation of this Agreement.

     Section 5.11 [Reserved].

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     Section 5.12 Further Assurances.

     (a) The Borrowers shall ensure that all written information (other
than projections or budgets), exhibits and reports furnished to the Agent
or the Banks do not and will not contain any untrue statement of a
material fact and do not and will not omit to state any material fact or
any fact necessary to make the statements contained therein not
materially misleading in light of the circumstances in which made, and
will promptly disclose to the Agent and the Banks and correct any defect
or error that may be discovered therein or in any Loan Document or in the
execution, acknowledgement or recordation thereof.

     (b) Promptly upon request by the Agent, the Borrowers shall (and
shall cause each of their Subsidiaries to) take such additional actions
as the Agent may reasonably require from time to time in order (i) to
carry out more effectively the purposes of this Agreement or any other
Loan Document, (ii) to subject to the Liens created by any of the
Security Documents any of the Properties, rights or interests covered by
any of the Security Documents, (iii) to perfect and maintain the
validity, effectiveness and priority of any of the Security Documents and
the Liens intended to be created thereby, and (iv) to better assure,
convey, grant, assign, transfer, preserve, protect and confirm to the
Agent and Banks the rights granted or now or hereafter intended to be
granted to the Agent and the Banks under any Loan Document or under any
other document executed in connection therewith.

     (c) Interest Rate Protection. Prior to December 31, 2004, the
Company shall enter into, and thereafter maintain, Rate Contracts
providing protection against fluctuations in interest rates with one or
more financial institutions or otherwise fixing the rate of interest with
respect to an amount equal to at least 20% of the Dollar Amount of the
Term Loans and the Term Loans (Foreign Currency), which agreements shall
provide for not less than a three (3) year term and containing such other
terms as are customary and are reasonably satisfactory to the Agent.

     Section 5.13 Management Agreement. The Company shall provide the Agent
promptly after the execution thereof an executed copy of the Management
Agreement dated not later than one year after the date of this Agreement.

     Section 5.14 Real Estate Mortgages. With respect to any fee interest in
any real property owned by the Company or any Subsidiary, promptly upon the
request of the Agent, the Company shall or shall cause the relevant Subsidiary
to (A) execute and deliver a first priority mortgage or deed of trust (as may
be required by applicable law) subject to Permitted Liens, in favor of the
Agent for the benefit of the Banks covering such real property, (B) if
requested by the Agent, provide the Banks (x) title and extended coverage
insurance covering such real property in an amount at least equal to the fair
market value of such real property (or such other amount as shall be specified
by the Agent) as well as a current ALTA survey thereof or equivalent thereof
satisfactory to the Agent, together with a surveyor’s certificate, (y) any
consents or estoppels deemed necessary or advisable by the Agent in connection
with such mortgage or deed of trust, each of the foregoing in form and
substance satisfactory to the Agent and (z) environmental reports or other
evidence satisfactory to the Agent as to any potential

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liabilities under environmental laws associated with such real property
and (C) if requested by the Agent, deliver to the Agent legal opinions relating
to the matters described above, which opinions shall be in form and substance,
and from counsel, satisfactory to the Agent.

     Section 5.15 Guaranties and Security Interests With Respect to
Subsidiaries. With respect to any Subsidiary of the Company for which such
events have not previously occurred or such deliveries have not been previously
made, promptly at the request of the Agent: (i) the Company shall cause the
Equity Interests in such Subsidiary (or, as to any Foreign Subsidiary, 65% of
the Equity Interests in such Subsidiary) to be pledged to the Agent for the
benefit of the Banks to secure the Obligations, (ii) the Company shall cause
such Subsidiary to absolutely and unconditionally guaranty or otherwise become
obligated to pay the Obligations, and/or grant to the Agent for the benefit of
the Banks a perfected security interest in substantially all of the assets of
such Subsidiary as security for the Obligations and (iii) the Company shall
cause such Subsidiary to, at the Company’s sole cost and expense, execute and
deliver to the Agent such documents and instruments reasonably deemed necessary
by the Agent to effectuate, or to evidence the due organizational authorization
of, the matters specified the foregoing clauses (i) and (ii) as specified in
such request (which documents may include a certificate of an appropriate
officer of such Subsidiary as to the organizational documents and resolutions
of such Subsidiary with respect to such matters and legal opinions with respect
to such matters). Notwithstanding the foregoing, the Company shall not be
required to furnish any such guaranties or security interests or related
documents or instruments with respect to any Foreign Subsidiary to the extent
that such actions would either (a) violate the laws of the jurisdiction of
formation of such Foreign Subsidiary or (b) create adverse tax consequences
with respect to the Company or any Subsidiary.

     Section 5.16 Collateral Assignments of Intellectual Property. Promptly
upon any request by the Agent, the Company or any of its Subsidiaries specified
in such request will execute and deliver to the Agent collateral assignments of
any intellectual property owned by the Company or such Subsidiary that is
registered with the United States Office of Patents and Trademarks or the
United States Office of Copyrights or any foreign filing authority and in the
form reasonably prescribed by the Agent.

     Section 5.17 Additional Financial Information. Within 10 days after the
Closing Date, the Borrowers’ Agent will furnish to the Agent:

     (a) projections for the Borrowers and their Subsidiaries for the
fiscal year period 2004 through 2008 (including monthly projections for
the 12 months commencing with August, 2004);

     (b) actual results against prior projections for the Company for the
12 months ending June, 2004; and

     (c) a pro forma closing balance sheet for the Company, giving effect
to the transactions contemplated by this Agreement.

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ARTICLE VI

NEGATIVE COVENANTS

     Until all obligations of the Banks hereunder to make the Term Loans and
the Term Loans (Foreign Currency) and Revolving Loans and of the Letter of
Credit Bank to issue Letters of Credit shall have expired or been terminated
and the Notes and all of the other Obligations have been paid in full and all
outstanding Letters of Credit shall have expired or the liability of the Letter
of Credit Bank thereon shall have otherwise been discharged, unless the Letter
of Credit Bank and the Required Banks shall otherwise consent in writing:

     Section 6.1 Limitation on Liens. The Borrowers shall not, and shall not
suffer or permit any of their Subsidiaries to, directly or indirectly, make,
create, incur, assume or suffer to exist any Lien upon or with respect to any
part of their Property, whether now owned or hereafter acquired, other than the
following (“Permitted Liens”):

     (a) any Lien existing on the Property of the Borrowers or their
Subsidiaries on the Closing Date and set forth in Schedule 6.1 securing
Indebtedness outstanding on such date and permitted by subsection 6.5(c),
including replacement Liens on the Property currently subject to such
Liens securing Indebtedness permitted by subsection 6.5(c);

     (b) any Lien created under any Loan Document;

     (c) Liens for taxes, fees, assessments or other governmental charges
(i) which are not delinquent or remain payable without penalty, or (ii)
the non-payment of which is permitted by Section 4.10;

     (d) carriers’, warehousemen’s, mechanics’, landlords’,
materialmen’s, repairmen’s or other similar Liens arising in the Ordinary
Course of Business which are not delinquent for more than ninety (90)
days or remain payable without penalty or which are being contested in
good faith and by appropriate proceedings diligently prosecuted, which
proceedings have the effect of preventing the forfeiture or sale of the
Property subject thereto and for which adequate reserves in accordance
with GAAP are being maintained;

     (e) Liens (other than any Lien imposed by ERISA) consisting of
pledges or deposits required in the Ordinary Course of Business in
connection with workers’ compensation, unemployment insurance and other
social security legislation or to secure the performance of tenders,
statutory obligations, surety, stay, customs and appeals bonds, bids,
leases, governmental contract, trade contracts, performance and return of
money bonds and other similar obligations (exclusive of obligations for
the payment of borrowed money) or to secure liability to insurance
carriers;

     (f) Liens consisting of judgment or judicial attachment liens,
provided that the enforcement of such Liens is effectively stayed and all
such Liens secure claims in the aggregate at any time outstanding for the
Borrowers and their Subsidiaries not exceeding $1,000,000;

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     (g) easements, rights-of-way, zoning and other restrictions, minor
defects or other irregularities in title, and other similar encumbrances
incurred in the Ordinary Course of Business which, either individually
or, in the aggregate, do not materially detract from the value of the
Property subject thereto or interfere in any material respect with the
ordinary conduct of the businesses of the Borrowers and their
Subsidiaries;

     (h) Liens on any Property acquired or held by a Borrower or its
Subsidiaries in the Ordinary Course of Business, securing Indebtedness
incurred or assumed for the purpose of financing (or refinancing) all or
any part of the cost of acquiring such Property and permitted under
subsection 6.5(d); provided that (i) any such Lien attaches to such
Property concurrently with or within ninety (90) days after the
acquisition thereof, (ii) such Lien attaches solely to the Property so
acquired in such transaction, and (iii) the principal amount of the debt
secured thereby does not exceed 100% of the cost of such Property
(including any shipping and installation costs);

     (i) Liens securing Capitalized Lease Obligations permitted under
subsection 6.5(d);

     (j) any interest or title of a lessor, sublessor, licensor or
sublicensor under any lease or non-exclusive license permitted by this
Agreement;

     (k) Liens arising from precautionary UCC financing statements filed
under any lease permitted by this Agreement;

     (l) Liens on insurance policies and the proceeds thereof incurred in
connection with the financing of insurance premiums in the ordinary
course of business;

     (m) Liens in favor of collecting banks arising under Section 4-210
of the UCC;

     (n) Liens encumbering customary initial deposits and margin
deposits, and similar Liens and margin deposits, and similar Liens
attaching to commodity trading accounts or other brokerage accounts
incurred in the Ordinary Course of Business consistent with past
practices, to the extent not interfering with the Borrowers or any of
their Subsidiaries;

     (o) licenses, sublicenses, leases or subleases of real property or
intellectual property granted by the Borrowers (as lessor or licensor) to
third Persons in the Ordinary Course of Business consistent with past
practices;

     (p) banker’s Liens and rights of set-off of financial institutions
arising in connection with items deposited in accounts maintained at such
financial institutions and subsequently unpaid and unpaid fees and
expenses that are charged to a Borrower or any of its Subsidiaries by
such financial institutions in the Ordinary Course of Business of the
maintenance and operation of such accounts;

     (q) Liens deemed to exist in connection with repurchase agreements
and other similar Investments to the extent such repurchase agreements
and/or Investments are permitted under Section 6.4 hereof;

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     (r) other Liens not described above securing obligations other than
Indebtedness, provided such Liens do not secure obligations in excess of
$1,000,000 in the aggregate at any one time;

     (s) Liens in favor of customs and revenue authorities which secure
payment of customs duties in connection with the importation of goods;

     (t) Liens attaching solely to reasonable cash earnest money deposits
in connection with any letter of intent or purchase agreement in
connection with a Permitted Acquisition;

     (u) Liens attaching solely to Cash Equivalents in connection with
any swap agreement that is not connected with the Obligations; and

     (v) Liens with respect to Property of a Foreign Subsidiary that is
not a Foreign Currency Borrower given to secure Indebtedness of such
Foreign Subsidiary permitted by Section 6.5(n).

     Section 6.2 Disposition of Assets. The Borrowers shall not, and shall not
suffer or permit any of their Subsidiaries to, directly or indirectly, sell,
assign, lease, convey, transfer or otherwise dispose of (whether in one or a
series of transactions) any Property (including accounts and notes receivable,
with or without recourse) or enter into any agreement to do any of the
foregoing, except:

     (a) (i) dispositions of inventory and use of cash, all in the
Ordinary Course of Business, (ii) dispositions of used, worn-out or
surplus equipment in the Ordinary Course of Business, (iii) leasing,
subleasing, licensing or sublicensing of intellectual property, or real
or personal property to third parties, in each case, in the Ordinary
Course of Business consistent with past practices, to the extent not
interfering with a Borrower or any of its Subsidiaries, and (iv)
dispositions of inventory among the Company and its Subsidiaries to the
extent permitted by Section 6.6(b);

     (b) dispositions not otherwise permitted hereunder which are made
for fair market value and the mandatory prepayment in the amount of the
net proceeds of such disposition is made as provided in Section 2.7;
provided, that (i) at the time of any disposition, no Event of Default
shall exist or shall result from such disposition, (ii) at least seventy
five percent (75%) of the aggregate sales price from such disposition
shall be paid in cash, and (iii) the aggregate fair market value of all
assets so sold by a Borrower and its Subsidiaries, together, shall not
exceed in any fiscal year $1,000,000;

     (c) sales, discounts or write-offs of overdue Accounts for
collection in the Ordinary Course of Business consistent with past
practices;

     (d) sales or other dispositions of Cash Equivalents in the Ordinary
Course of Business;

     (e) issuances of Equity Interests in the Company (including warrants
or options or similar interests) to officers and employees pursuant to a
stock ownership or

72

 

purchase plan or compensation plan of a Borrower or any of its
Subsidiaries, to the extent otherwise permitted pursuant to the terms of
this Agreement; provided that no issuances shall be permitted while an
Event of Default has occurred or is continuing or would arise as a result
therefrom;

     (f) the granting of Permitted Liens;

     (g) sales or other dispositions expressly permitted pursuant to
Section 6.3 and dispositions of Investments permitted by Section 6.4;

     (h) intercompany transfers of assets in the Ordinary Course of
Business; provided, that the fair market value of assets transferred to
Foreign Subsidiaries shall not exceed $5,000,000 in any fiscal year;

     (i) issuances of Equity Interests to qualifying directors of the
Borrowers and the Subsidiaries; and

     (j) sales or other dispositions of Investments permitted hereunder.

     Section 6.3 Consolidations and Mergers. The Borrowers shall not, and
shall not suffer or permit any of their Subsidiaries to, merge, consolidate
with or into, or convey, transfer, lease or otherwise dispose of (whether in
one transaction or in a series of transactions) all or substantially all of
their assets (whether now owned or hereafter acquired) to or in favor of any
Person, except (i) the Company may consummate the Merger on the Closing Date
and (ii) upon not less than five (5) Business Days prior written notice to the
Agent, any Subsidiary of the Company may merge with, or dissolve or liquidate
into, the Company or a Wholly-Owned Subsidiary of the Company, provided that
the Company or such Wholly-Owned Subsidiary shall be the continuing or
surviving entity.

     Section 6.4 Loans and Investments. The Borrowers shall not and shall not
suffer or permit any of their Subsidiaries to (i) purchase or acquire, or make
any commitment to purchase or acquire any capital stock, Equity Interest, or
any obligations or other securities of, or any interest in, any Person,
including the establishment or creation of a Subsidiary after the Closing Date,
or (ii) make or commit to make any Acquisitions, or any other acquisition of
all or substantially all of the assets of another Person, or of any business or
division of any Person, including without limitation, by way of merger,
consolidation or other combination (other than the Merger or as otherwise
permitted pursuant to Section 6.3) or (iii) make or commit to make any advance,
loan, extension of credit or capital contribution to or any other investment
in, any Person including any Affiliate of a Borrower or any Subsidiary of a
Borrower, but excluding trade payables, accrued operating expenses, prepaid
operating expenses and Accounts Receivable, in each instance, incurred, made or
arising in the Ordinary Course of Business consistent with past practices (the
items described in clauses (i), (ii) and (iii) are referred to as
“Investments”), except for:

     (a) Investments in Cash Equivalents;

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     (b) extensions of credit in the Ordinary Course of Business by (i)
the Company to any of its Subsidiaries, or (ii) any Subsidiary of the
Company to the
Company or to any other Subsidiary of the Company; provided that
following an Event of Default, if requested by the Agent, the obligations
of each obligor shall be evidenced by notes, the sole originally executed
copy of which shall, at the request of the Agent, be pledged to the
Agent, for the benefit of the Agent and the Banks, and have such other
terms as the Agent may reasonably require;

     (c) loans and advances to employees in the Ordinary Course of
Business not to exceed $1,000,000 in the aggregate at any time
outstanding;

     (d) Investments in securities of Account Debtors received pursuant
to any plan of reorganization or similar arrangement upon the bankruptcy
or insolvency of such account debtors;

     (e) Investments in the form of intercompany loans made by the
Borrowers to the Company to the extent that, at the time such loan is
made, a Restricted Payment from the Borrowers to the Company would be
permitted under Section 6.11 and provided that (i) the proceeds of such
loans are used for the purposes specified in Section 6.11, (ii) following
an Event of Default, if requested by the Agent, such loans are evidenced
by promissory notes, the sole originally executed copy of which shall, at
the request of the Agent, be pledged to the Agent, for the benefit of the
Agent and Banks, as security for the Obligations and (iii) such
intercompany loans shall be treated as a Restricted Payment for purposes
of this Agreement, including, without limitation, determining compliance
with the provisions of Section 6.11 relating to the type of such
Restricted Payment;

     (f) the forgiveness or capitalization by a Borrower or any of its
Subsidiaries of Indebtedness owed to such Borrower or such Subsidiary by
a Borrower or any other Subsidiary of a Borrower in the Ordinary Course
of Business;

     (g) Rate Contracts entered into in the Ordinary Course of Business;

     (h) deposit accounts maintained in the Ordinary Course of Business
to the extent that, if so requested by the Agent, the Agent has received
a deposit account control agreement, in form and substance reasonably
satisfactory to the Agent, executed by the applicable Borrower, the Agent
and the financial institution at which all such deposit accounts are
maintained, and over which deposit accounts the Agent has “control” under
and as defined in the UCC;

     (i) deposits made in the Ordinary Course of Business securing
obligations or performance under contracts, such as in connection with
real estate or personal property leases;

     (j) promissory notes and other similar non-cash consideration
received by a Borrower or any of its Subsidiaries in connection with
dispositions permitted under subsection 6.2(b), provided that such notes
or non-cash consideration shall be pledged to the Agent, for the benefit
of the Agent and the Banks;

     (k) the establishment or creation of domestic Wholly-Owned
Subsidiaries by the Company or any of its domestic Wholly-Owned
Subsidiaries after the Closing Date to

74

 

the extent the Company and its Subsidiaries shall have complied with
the provisions of Section 5.12 in respect thereof and no Default or Event
of Default exists or otherwise would arise or result therefrom, provided
that, contributions to capital and extensions of credit to such
Subsidiaries shall be subject to the provisions of this Agreement;

     (l) the acquisition by the Company or any of its domestic
Wholly-Owned Subsidiaries of all or substantially all of the assets of
another domestic business organization that is a Wholly-Owned Subsidiary
prior to such acquisition, or of any business or division of such
domestic Wholly-Owned Subsidiary, so long as no Event of Default exists
or otherwise would result therefrom;

     (m) Investments existing on the Closing Date and set forth in
Schedule 6.4;

     (n) to the extent permitted by applicable law, the Borrowers and
their Subsidiaries may accept notes from officers and employees in
exchange for capital stock of the Company purchased by such officers or
employees pursuant to a stock ownership or purchase plan or compensation
plan in the Ordinary Course of Business;

     (o) Contingent Obligations permitted under Section 6.9;

     (p) loans or Investments that could otherwise be made as a
distribution in cash permitted under Section 6.11;

     (q) Investments to the extent such Investments reflect an increase
in the value of other permitted Investments;

     (r) the Borrowers and their Subsidiaries may capitalize or forgive
any Indebtedness owed to it by a Borrower;

     (s) Permitted Acquisitions;

     (t) transfers of assets among the Borrowers and their Subsidiaries
to the extent permitted under Section 6.2;

     (u) Investments constituting pledges and deposits otherwise
permitted under this Agreement;

     (v) creation of, and capital contributions to, (i) Domestic
Subsidiaries provided such Borrower and such Subsidiary shall have
complied with the terms and conditions contained in Section 5.12 and (ii)
Foreign Subsidiaries, provided that the capital contributions to Foreign
Subsidiaries shall not exceed $5,000,000 (plus any return of capital or
dividends received from Foreign Subsidiaries) during the term of this
agreement;

     (w) Capital Expenditures permitted hereunder; and

     (x) other Investments not described above in an aggregate amount not
to exceed $1,000,000 at any one time outstanding. The amount of any
Investment shall be

75

 

the initial amount of such Investment less all repayments, returns,
dividends and distributions received in respect of such Investment and
less all liabilities expressly assumed by another Person in connection
with the sale of such Investment.

     Section 6.5 Limitation on Indebtedness. The Borrowers shall not, and
shall not suffer or permit any of their Subsidiaries to, create, incur, assume,
suffer to exist, or otherwise become or remain directly or indirectly liable
with respect to, any Indebtedness, except:

     (a) Indebtedness incurred pursuant to this Agreement;

     (b) Indebtedness consisting of Contingent Obligations described in
clause (i) of the definition thereof and permitted pursuant to Section
6.9;

     (c) Indebtedness existing on the Closing Date and set forth in
Schedule 6.5 including extensions and refinancings thereof which do not
increase the principal amount of such Indebtedness as of the date of such
extension or refinancing;

     (d) Indebtedness not to exceed $2,000,000 in the aggregate at any
time outstanding, consisting of Capital Lease Obligations or secured by
Liens permitted by subsection 6.1(i);

     (e) unsecured intercompany Indebtedness permitted pursuant to
subsection 6.4(b);

     (f) Subordinated Indebtedness;

     (g) Indebtedness incurred in respect of netting services and
overdraft protection in connection with deposit accounts;

     (h) Indebtedness incurred in connection with the financing of
insurance premiums in the Ordinary Course of Business;

     (i) Indebtedness in respect of taxes, assessments or governmental
charges to the extent that payment thereof shall not at the time be
required to be made in accordance with Section 5.7;

     (j) Indebtedness consisting of deferred purchase price or notes
issued to officers, directors and employees to purchase or redeem Equity
Interests (or option or warrants or similar instruments) of the Company
in the Ordinary Course of Business;

     (k) Indebtedness arising from agreements providing for
indemnification, Surety Bonds or performance bonds securing the
performance of such Person in the Ordinary Course of Business or in
connection with a Permitted Acquisition or disposition permitted under
Subsection 6.2;

     (l) obligations under incentive, non-compete, consulting, deferred
compensation, or other similar arrangements entered into in the Ordinary
Course of Business;

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     (m) Indebtedness in connection with Rate Contracts;

     (n) Indebtedness of Foreign Subsidiaries (including letters of
credit) incurred in the Ordinary Course of Business not to exceed
$5,000,000 outstanding at any time;

     (o) to the extent constituting Indebtedness, obligations secured by
Liens permitted under Subsection 6.1(c); and

     (p) other Indebtedness not exceeding in the aggregate at any time
outstanding $1,000,000.

     Section 6.6 Transactions with Affiliates. The Borrowers shall not, and
shall not suffer or permit any of their Subsidiaries to, enter into any
transaction with any Affiliate of such Borrower or of any such Subsidiary,
except:

     (a) as expressly permitted by this Agreement

     (b) in the Ordinary Course of Business and pursuant to the
reasonable requirements of the business of such Borrower or such
Subsidiary provided that, in the case of this clause (b), upon fair and
reasonable terms no less favorable to such Borrower or such Subsidiary
than would be obtained in a comparable arm’s-length transaction with a
Person not an Affiliate of such Borrower or such Subsidiary and which are
disclosed in writing to the Agent;

     (c) transactions entered into on or prior to the Closing Date and
disclosed on Schedule 6.6;

     (d) compensation, expense reimbursement and indemnities paid to
officers and directors of the Borrowers and their Subsidiaries in the
Ordinary Course of Business;

     (e) stock option and compensation plans of the Borrowers and their
Subsidiaries maintained in the Ordinary Course of Business;

     (f) employment contracts with officers and management of the
Borrowers and their Subsidiaries permitted by Section 6.7;

     (g) transactions among the Borrowers and their Subsidiaries in the
Ordinary Course of Business;

     (h) the repurchase of Equity Interests from officers, directors and
employees to the extent permitted by Section 6.4;

     (i) advances and loan to officers and employees of the Borrowers and
their Subsidiaries to the extent permitted by Section 6.4;

     (j) notes taken from officers, directors and employees to purchase
Equity Interests to the extent permitted by Section 6.4; and,

77

 

     (k) payment of management fees, consulting fees, advisory fees or
similar fees pursuant to the Management Agreement and indemnities and
reimbursement of expenses in connection therewith.

     Section 6.7 Management Fees and Compensation. The Borrowers shall not,
and shall not permit any of their Subsidiaries to pay any management,
consulting or similar fees to any Affiliate of the Borrower or to any officer,
director or employee of the Borrower or any of its Subsidiaries or any
Affiliate of the Borrower except (a) payment of reasonable compensation to
officers and employees for actual services rendered to the Borrower and its
Subsidiaries in the Ordinary Course of Business, (b) payment of directors’ fees
and reimbursement of actual out-of-pocket expenses incurred in connection with
attending board of director meetings not to exceed in the aggregate, with
respect to all such items, $1,000,000 in any fiscal year of the Borrower, (c)
reimbursement of reasonable, actual out-of-pocket expenses incurred by HCI
Partners LLC in the Ordinary Course of Business to the extent required to be
reimbursed pursuant the Management Agreement, (d) payment of a management fee
to HCI Partners LLC pursuant to the Management Agreement not to exceed $500,000
per annum, and (e) transaction fees payable pursuant to the Management
Agreement; provided, however, that no such fees or reimbursements of expenses
described in clauses (c), (d) or (e) above shall be paid during any period
while an Event of Default has occurred and is continuing or would arise as a
result of such payment, provided, further, that fees or reimbursements of
expenses not paid as a result of the occurrence or continuance of an Event of
Default may accrue and be paid when the applicable Event of Default has been
cured or waived.

     Section 6.8 Use of Proceeds. The Borrowers shall not and shall not suffer
or permit any of their Subsidiaries to use any portion of the Loan proceeds,
directly or indirectly, to purchase or carry Margin Stock or repay or otherwise
refinance Indebtedness of the Borrower or others incurred to purchase or carry
Margin Stock, or otherwise in any manner which is in contravention of any
Requirement of Law or in violation of this Agreement.

     Section 6.9 Contingent Obligations. The Borrowers shall not, and shall
not suffer or permit any of their Subsidiaries to, create, incur, assume or
suffer to exist any Contingent Obligations except in respect of the Obligations
and except:

     (a) endorsements for collection or deposit and standard contractual
indemnities entered into, in each case, in the Ordinary Course of
Business;

     (b) Rate Contracts entered into in the Ordinary Course of Business
for bona fide hedging purposes and not for speculation with the Agent’s
prior written consent or pursuant to Section 5.13;

     (c) Contingent Obligations of a Borrower and its Subsidiaries
existing as of the Closing Date and listed in Schedule 6.9, including
extension and renewals thereof which do not increase the amount of such
Contingent Obligations as of the date of such extension or renewal;

     (d) Contingent Obligations incurred in the Ordinary Course of
Business with respect to surety and appeal bonds, performance bonds and
other similar obligations;

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     (e) Contingent Obligations (including Earn-outs) in connection with
Permitted Acquisitions and Subordinated Indebtedness;

     (f) Contingent Obligations arising under indemnity agreements to
title insurers to cause such title insurers to issue to the Agent title
insurance policies;

     (g) Contingent Obligations arising with respect to customary
indemnification obligations in favor of (i) sellers in connection with
Acquisitions permitted hereunder and (ii) purchasers in connection with
dispositions permitted under subsection 6.2(b);

     (h) Contingent Obligations arising under Letters of Credit and other
letters of credit permitted by Section 6.5; and

     (i) Contingent Obligations incurred for the benefit of the Company
or any of its Wholly-Owned Subsidiaries if the Primary Obligation is
expressly permitted by this Agreement.

     Section 6.10 Compliance with ERISA. The Borrowers shall not, and shall
not suffer or permit any of their Subsidiaries to:

     (a) terminate any Plan subject to Title IV of ERISA so as to result
in any material liability to a Borrower;

     (b) permit to exist any ERISA Event or any other event or condition,
which would reasonably be expected to have a Material Adverse Effect;

     (c) make a complete or partial withdrawal (within the meaning of
ERISA Section 4201) from any Multiemployer Plan so as to result in any
material liability to a Borrower;

     (d) enter into any new Plan or modify any existing Plan so as to
increase its obligations thereunder which would reasonably be expected to
have a Material Adverse Effect; or

     (e) except for any such excess described in Section 6.10 with
respect to any plans relating to the Subsidiaries’ United Kingdom
operations permit the present value of all nonforfeitable accrued
benefits under any Plan (using the actuarial assumptions utilized by the
PBGC upon termination of a Plan) materially to exceed the fair market
value of Plan assets allocable to such benefits, all determined as of the
most recent valuation date for each such Plan.

     Section 6.11 Restricted Payments. The Borrowers shall not, and shall not
suffer or permit any of their Subsidiaries to, (i) declare or make any dividend
payment or other distribution of assets, properties, cash, rights, obligations
or securities on account of any shares of any class of its capital stock,
partnership interests, membership interests or other equity securities, (ii)
purchase, redeem or otherwise acquire for value any shares of its capital
stock, partnership interests, membership interests or other equity securities
or any warrants, rights or options to acquire such shares, interests or
securities now or hereafter outstanding or (iii) make

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any payment or prepayment of principal of, premium, if any, interest,
fees, redemption, exchange, purchase, retirement, defeasance, sinking fund or
similar payment with respect to, Subordinated Indebtedness (the items described
in clauses (i), (ii) and (iii) above are referred to as “Restricted Payments”);
except that any Wholly-Owned Subsidiary of the Borrower may declare and pay
dividends to the Company or any Wholly-Owned Subsidiary of the Company, and
except that the Company may:

     (a) declare and make dividend payments or other distributions
payable solely in its common stock or other equity securities;

     (b) redemption and dividend payments to management and directors in
the Ordinary Course of Business pursuant to the Company’s executive
compensation plans;

     (c) prepay the indebtedness associated with the issuance of
industrial development revenue bonds existing on the date of this
Agreement relating to the Borrowers’ Vonore, Tennessee facility; and

     (d) in connection with the consummation of the Merger, make
distributions upon and/or redeem fractional shares in the Company.

     Section 6.12 Change in Business. The Borrowers shall not, and shall not
permit any of their Subsidiaries to, engage in any material line of business
substantially different from those lines of business carried on by it on the
date hereof or any business similarly related to or which constitutes a
reasonable extension thereof.

     Section 6.13 Change in Structure. Except (i) as expressly permitted under
Section 5.3 and 6.4 and (ii) for the UK Restructuring Transaction so long as
(x) no Event of Default is continuing, (y) the Borrower’s Agent has given the
Agent not less than 10 days’ written notice prior to the consummation thereof
and (z) the Borrower’s Representative has delivered to the Agent any documents
requested by the Agent of the type specified in Section 5.15, the Borrowers
shall not and shall not permit any of their Subsidiaries to, make any material
changes in their equity capital structure (including in the terms of its
outstanding stock), or amend any of their Organization Documents in any
material respect or in any respect adverse to the Agent or Banks in their
capacity as such, except that National Seating Company (currently a Subsidiary
of Bostrom International, Ltd.) may become a Subsidiary owned directly by the
Company.

     Section 6.14 Accounting Changes. The Borrowers shall not, and shall not
suffer or permit any of their Subsidiaries to, make any significant change in
accounting treatment or reporting practices, except as required by GAAP, or
change the fiscal year of the Borrower or of any of its consolidated
Subsidiaries.

     Section 6.15 Amendments to Related Agreements and Subordinated
Indebtedness.

     (a) The Borrowers shall not and shall not permit any of their
Subsidiaries, to (i) amend, supplement, waive or otherwise modify any
provision of, any Related Agreement in a manner adverse to the Agent or
Banks or which could reasonably be expected to have a Material Adverse
Effect, or (ii) take or fail to take any action under
any Related Agreement that could reasonably be expected to have a
Material Adverse Effect.

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     (b) the Borrowers shall not, and shall not permit any of their
Subsidiaries directly or indirectly to, change or amend the terms of any
Subordinated Indebtedness if the effect of such amendment is to: (A)
increase the interest rate on such Indebtedness; (B) shorten the dates
upon which payments of principal or interest are due on such
Indebtedness; (C) change the subordination provisions thereof (or the
subordination terms of any guaranty thereof); or (D) change or amend any
other term if such change or amendment would materially increase the
obligations of the obligor or confer additional material rights on the
holder of such Indebtedness in a manner adverse to such Borrower, any of
its Subsidiaries, the Agent or the Banks.

     Section 6.16 No Negative Pledges. The Borrowers will not, and will not
permit any of their Subsidiaries, directly or indirectly, to create or
otherwise cause or suffer to exist or become effective any consensual
restriction or encumbrance of any kind on the ability of any such Subsidiary to
pay dividends or make any other distribution on any of such Subsidiary’s equity
securities or to pay fees, including management fees, or make other payments
and distributions to the Company or any of its Subsidiaries other than
restrictions contained herein. The Borrowers will not, and will not permit any
of their Subsidiaries, directly or indirectly, to enter into, assume or become
subject to any Contractual Obligation prohibiting or otherwise restricting the
existence of any Lien upon any of its assets in favor of the Agent, whether now
owned or hereafter acquired except (i) in connection with any document or
instrument governing Liens permitted pursuant to subsections 6.1(h) and (i) and
(v) provided that any such restriction contained therein relates only to the
asset or assets subject to such permitted Liens or (ii) licenses and contracts
providing that the granting of such Lien in the right, title or interest of the
Borrowers or their Subsidiaries therein would be prohibited and would, in and
of itself, cause or result in a default thereunder enabling another Person
party to such license or contract to enforce any remedy with respect thereto.

     Section 6.17 OFAC. None of the Borrowers or any of their Subsidiaries (i)
will become a person whose property or interests in property are blocked or
subject to blocking pursuant to Section 1 of Executive Order 13224 of September
23, 2001 Blocking Property and Prohibiting Transactions With Persons Who
Commit, Threaten to Commit or Support Terrorism (66 Fed. Reg. 49079(2001), (ii)
will engage in any dealings or transactions prohibited by Section 2 of such
executive order, or be otherwise, to the knowledge of a Responsible Officer of
a Borrower, associated with any such person in any manner violative of Section
2, or (iii) will otherwise become a person on the list of Specially Designated
Nationals and Blocked Persons or subject to the limitations or prohibitions
under any other OFAC regulation or executive order.

     Section 6.18 Capital Expenditures. The Borrowers and their Subsidiaries
shall not make Capital Expenditures for any fiscal year in an aggregate amount
exceeding $12,000,000.

     Section 6.19 Total Leverage Ratio. The Borrowers shall not permit the
Total Leverage Ratio as of the last day of any fiscal quarter ending during the
following periods for the four fiscal quarter period then ended to be greater
than the ratio set forth below for such period:

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	Fiscal Quarters	 	Maximum Total
	Ending
	 	Leverage Ratio

	September 30, 2004

	 	3.00 to 1.00
	 
	 	 
	December 31, 2004

	 	3.00 to 1.00
	 
	 	 
	March 31, 2005 through December 31,
2005

	 	2.75 to 1.00
	 
	 	 
	March 31, 2006 through December 31,
2006 and each fiscal quarter
thereafter

	 	2.50 to 1.00

     Section 6.20 Fixed Charge Coverage Ratio. The Company shall not permit
its Fixed Charge Coverage Ratio:

     (a) for the period from October 1, 2004 to the last day of the
fiscal quarters ending on or about December 31, 2004, March 31, 2005 and
June 30, 2005, to be less than 1.30 to 1.00; and

     (b) for the four fiscal quarters ending on September 2005 and the
last day of each fiscal quarter thereafter, to be less than 1.30 to 1.00.

     Section 6.21 Interest Coverage Ratio. The Company shall not permit its
Interest Coverage Ratio:

     (a) for the period from October 1, 2004 to the last day of the
fiscal quarters ending on or about December 31, 2004, March 31, 2005 and
June 30, 2005, to be less than 2.50 to 1.00; and

     (b) for the four fiscal quarters ending on or about September 2005
and the last day of each fiscal quarter thereafter, to be less than 2.50
to 1.00.

ARTICLE VII

EVENTS OF DEFAULT AND REMEDIES

     Section 7.1 Event of Default. Any of the following shall constitute an
“Event of Default”:

     (a) Non-Payment. The Borrowers fail to pay, (i) when and as
required to be paid herein, any amount of principal of any Loan,
including after maturity of the Loans, whether by acceleration or
otherwise, (ii) within three (3) days after the same shall become due,
any interest on any Loan, or (iii) within five (5) days after the same
shall become due, any fee or any other amount payable hereunder or
pursuant to any other Loan Document; or

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     (b) Representation or Warranty. Any representation, warranty or
certification by or on behalf of a Borrower or any of its Subsidiaries
made or deemed made herein, in any other Loan Document, or which is
contained in any certificate, document or financial or other statement by
a Borrower, any of its Subsidiaries, or their respective Responsible
Officers, furnished at any time under this Agreement, or in or under any
other Loan Document, shall prove to have been incorrect in any material
respect on or as of the date made or deemed made; or

     (c) Specific Defaults. A Borrower fails to perform or observe any
term, covenant or agreement contained in Sections 5.1, 5.2(a), 5.3,
5.4(a) , 5.12 or Article VI hereof or the Fee Letter; or

     (d) Other Defaults. A Borrower or any of its Subsidiaries fails to
perform or observe any other term, covenant or agreement contained in
this Agreement or any other Loan Document, and such default shall
continue unremedied for a period of thirty (30) days after the earlier to
occur of (i) the date upon which a Responsible Officer becomes aware of
such default and (ii) the date upon which written notice thereof is given
to the Borrower’s Agent by the Agent or the Required Banks; or

     (e) Cross-Default. A Borrower or any of its Subsidiaries (i) fails
to make any payment in respect of any one or more items of Indebtedness
(other than the Obligations) or Contingent Obligations having an
aggregate principal amount (including undrawn committed or available
amounts and including amounts owing to all creditors under any combined
or syndicated credit arrangement) of more than $3,000,000 when due
(whether by scheduled maturity, required prepayment, acceleration,
demand, or otherwise) and such failure continues after the applicable
grace or notice period, if any, specified in the document relating
thereto on the date of such failure; or (ii) fails to perform or observe
any other condition or covenant, or any other event shall occur or
condition exist, under any agreement or instrument relating to any such
Indebtedness or Contingent Obligation, if the effect of such failure,
event or condition is to cause, or to permit the holder or holders of
such Indebtedness or beneficiary or beneficiaries of such Indebtedness
(or a trustee or agent on behalf of such holder or holders or beneficiary
or beneficiaries) to cause such Indebtedness to be declared to be due and
payable prior to its stated maturity (without regard to any subordination
terms with respect thereto), or such Contingent Obligation to become
payable or cash collateral in respect thereof to be demanded; or

     (f) Insolvency; Voluntary Proceedings. A Borrower or any of its
Subsidiaries (i) ceases or fails, on a consolidated basis, to be Solvent;
(ii) other than as to Excluded Subsidiaries, voluntarily ceases to
conduct its business in the ordinary course (; (iii) commences any
Insolvency Proceeding with respect to itself; or (iv) takes any action to
effectuate or authorize any of the foregoing; or

     (g) Involuntary Proceedings. (i) Any involuntary Insolvency
Proceeding is commenced or filed against a Borrower or any Subsidiary of
a Borrower, or any writ, judgment, warrant of attachment, execution or
similar process, is issued or levied against a substantial part of a
Borrower’s or any of its Subsidiaries’ Properties, and any such
proceeding or petition shall not be dismissed, or such writ, judgment,
warrant of

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attachment, execution or similar process shall not be released,
vacated or fully bonded within sixty (60) days after commencement, filing
or levy; (ii) a Borrower or any of its Subsidiaries admits the material
allegations of a petition against it in any Insolvency Proceeding, or an
order for relief (or similar order under non-U.S. law) is ordered in any
Insolvency Proceeding; or (iii) a Borrower or any of its Subsidiaries
acquiesces in the appointment of a receiver, trustee, custodian,
conservator, liquidator, mortgagee in possession (or agent therefor), or
other similar Person for itself or a substantial portion of its Property
or business; or

     (h) ERISA. (i) A member of the Controlled Group shall fail to pay
when due, after the expiration of any applicable grace period, any
installment payment with respect to its Withdrawal Liability under a
Multiemployer Plan; (ii) a member of the Controlled Group shall fail to
satisfy its contribution requirements under Section 412(c)(11) of the
Code, whether or not it has sought a waiver under Section 412(d) of the
Code; (iii) the occurrence of an ERISA Event; (iv) a Plan that is
intended to be qualified under Section 401(a) of the Code shall lose its
qualification; (v) any member of the Controlled Group engages in or
otherwise becomes liable for a non-exempt prohibited transaction; (vi) a
violation of Section 404 or 405 of ERISA or the exclusive benefit rule
under Section 401(a) of the Code; (vii) any member of the Controlled
Group is assessed a tax under Section 4980B of the Code or incurs a
liability under Section 601 et seq of ERISA; and, the occurrence of any
such event listed in clauses (i) through (vii), or the occurrence of any
combination of events listed in clauses (i) through (vii) results in, or
could reasonably be expected to result in, a Material Adverse Effect; or

     (i) Monetary Judgments. One or more judgments, non-interlocutory
orders, decrees or arbitration awards shall be entered against a Borrower
or any of its Subsidiaries involving in the aggregate a liability (to the
extent not covered by independent third-party insurance or for which
there is not indemnification upon terms, and by such indemnitors,
reasonably acceptable to the Agent) as to any single or related series of
transactions, incidents or conditions, of $1,000,000 or more, and the
same shall remain unsatisfied, unvacated and unstayed pending appeal for
a period of thirty (30) days after the entry thereof; or

     (j) Non-Monetary Judgments. One or more non-monetary judgments,
orders or decrees shall be rendered against a Borrower or any of its
Subsidiaries which does or would reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect, and there
shall be any period of ten (10) consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect; or

     (k) Collateral. Any material provision of any Security Document
shall for any reason cease to be valid and binding on or enforceable
against a Borrower or any Subsidiary of a Borrower party thereto or a
Borrower or any Subsidiary of a Borrower shall so state in writing or
bring an action to limit its obligations or liabilities thereunder; or
any Collateral Document shall for any reason (other than pursuant to the
terms thereof) cease to create a valid security interest in any material
portion of the Collateral purported to be covered thereby or, if such
security interest is a perfected security interest, such

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security interest shall for any reason (other than the failure of
the Agent or its counsel to take any action within its control) cease to
be a perfected and first priority security interest subject only to
Permitted Liens; or

     (l) Ownership. Following the IPO, any Change of Control shall
occur.

     (m) Invalidity of Subordination Provisions. The subordination
provisions of any Subordinated Indebtedness shall for any reason be
revoked or invalidated, or otherwise cease to be in full force and effect
in any material respect, or the Borrower or any Subsidiary thereof which
is subject to such subordination provisions shall contest in any manner
the validity or enforceability thereof or deny that it has any further
liability or obligation thereunder, or the Obligations, for any reason
shall not have the priority contemplated by this Agreement or such
subordination provisions.

     Section 7.2 Remedies. Upon the occurrence and during the continuance of
any Event of Default, the Agent shall at the request of the Required Banks:

     (a) declare all or any portion of the Commitment of each Bank and
the Issuing Bank to make Advances or issue Letters of Credit to be
terminated, whereupon such Commitments shall forthwith be terminated;

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

     (c) exercise on behalf of itself and the Banks all rights and
remedies available to it and the Banks under the Loan Documents or
applicable law;

provided, however, that upon the occurrence of any event specified in
subsections 7.1(f), 7.1(g) or 7.1(m)(iv) above (in the case of clause (i) of
subsection 7.1(g) upon the expiration of the sixty (60) day period mentioned
therein), the obligation of each Bank to make Loans and the obligation of the
Issuing Bank to issue Bank Letters of Credit shall automatically terminate and
the unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable without further
act of the Agent or any Bank.

     Section 7.3 Rights Not Exclusive. The rights provided for in this
Agreement and the other Loan Documents are cumulative and are not exclusive of
any other rights, powers, privileges or remedies provided by law or in equity,
or under any other instrument, document or agreement now existing or hereafter
arising.

     Section 7.4 Cash Collateral for Letters of Credit. If an Event of Default
has occurred and is continuing or this Agreement (or the Revolving Loan
Commitment) shall be terminated for any reason, then the Agent, at the request
of Banks holding more than fifty percent (50%) of the Revolving Loan
Commitments (or if there are three or fewer Banks holding Revolving Loan
Commitments, at the request of all Banks holding Revolving Loan Commitments)
shall, demand

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(which demand shall be deemed to have been delivered automatically upon
any acceleration of the Loans and other obligations hereunder pursuant to
Section 7.2 hereof or upon payment in full of the Term Loans and the Term Loans
(Foreign Currency)), and the Borrower shall thereupon deliver to the Agent, to
be held for the benefit of the Agent and the Banks entitled thereto, an amount
of cash equal to 105% of the amount of Letter of Credit Participation Liability
(determined in accordance with subsection 1.1(c) hereof) as additional
collateral security for the Borrower’s Obligations in respect of any
outstanding Bank Letter of Credit and Letter of Credit Participation Agreement.
The Agent may at any time upon notice to the Issuing Bank apply any or all of
such cash and cash collateral to the payment of any or all of the Borrower’s
Obligations in respect of any Bank Letters of Credit or Letter of Credit
Participation Agreements. Pending such application, the Agent may (but shall
not be obligated to) invest the same in an interest bearing account in the
Agent’s name, for the benefit of the Agent and the Banks entitled thereto,
under which deposits are available for immediate withdrawal, at such bank or
financial institution as the Agent may, in its discretion, select.

     Section 7.5 Offset. In addition to the remedies set forth in Section 7.2,
upon the occurrence of any Event of Default and thereafter while the same be
continuing, each Borrower hereby irrevocably authorizes each Bank to set off
any Obligations then due and payable owed to such Bank against all deposits
(other than tax withholding and payroll accounts maintained in the ordinary
course of business) and credits of such Borrower with, and any and all claims
of the Borrowers against, such Bank, and to set off any Obligations against all
amounts in the Holding Account. Such right shall exist whether or not such
Bank shall have made any demand hereunder or under any other Loan Document,
whether or not the deposits and credits held for the account of the Borrowers
is or are matured or unmatured, and regardless of the existence or adequacy of
any collateral, guaranty or any other security, right or remedy available to
such Bank or the Banks. Each Bank agrees that, as promptly as is reasonably
possible after the exercise of any such setoff right, it shall notify the
Borrowers’ Agent of its exercise of such setoff right; provided, however, that
the failure of such Bank to provide such notice shall not affect the validity
of the exercise of such setoff rights. Nothing in this Agreement shall be
deemed a waiver or prohibition of or restriction on any Bank to all rights of
banker’s Lien, setoff and counterclaim available pursuant to law.

ARTICLE VIII

THE AGENT

     The following provisions shall govern the relationship of the Agent with
the Banks.

     Section 8.1 Appointment and Authorization. Each Bank appoints and
authorizes the Agent and the Foreign Currency Funding Agent to take such action
as agent on its behalf and to exercise such respective powers under the Loan
Documents as are delegated to the Agent by the terms thereof, together with
such powers as are reasonably incidental thereto. Neither the Agent nor the
Foreign Currency Funding Agent nor any of its directors, officers or employees
shall be liable for any action taken or omitted to be taken by it under or in
connection with the Loan Documents, except for its own gross negligence or
willful misconduct. The Agent and the Foreign Currency Funding Agent shall
act as an independent contractor in performing its obligations as Agent
hereunder. The duties of the Agent and the Foreign Currency Funding

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Agent shall be mechanical and administrative in nature, and nothing herein
contained shall be deemed to create any fiduciary relationship among or between
the Agent, the Foreign Currency Funding Agent, any Borrower or the Banks.

     Section 8.2 Note Holders. The Agent and the Foreign Currency Funding
Agent may treat the payee of any Note as the holder thereof until written
notice of transfer shall have been filed with it, signed by such payee and in
form satisfactory to the Agent and the Foreign Currency Funding Agent.

     Section 8.3 Consultation With Counsel. The Agent, the Syndication Agent
and the Foreign Currency Funding Agent may consult with legal counsel selected
by it and shall not be liable for any action taken or suffered in good faith by
it in accordance with the advice of such counsel.

     Section 8.4 Loan Documents. Neither the Agent nor the Syndication Agent
nor the Foreign Currency Funding Agent shall be responsible to any Bank for any
recitals, statements, representations or warranties in any Loan Document or be
under a duty to examine or pass upon the validity, effectiveness, genuineness
or value of any of the Loan Documents or any other instrument or document
furnished pursuant thereto, and the Agent and the Syndication Agent and the
Foreign Currency Funding Agent shall be entitled to assume that the same are
valid, effective and genuine and what they purport to be.

     Section 8.5 USBNA and Affiliates. With respect to its Commitments and the
Loans made by it, USBNA and the Foreign Currency Funding Agent shall have the
same rights and powers under the Loan Documents as any other Bank and may
exercise the same as though it were not the Agent consistent with the terms
thereof, and USBNA, the Foreign Currency Funding Agent and its Affiliates may
accept deposits from, lend money to and generally engage in any kind of
business with any Borrower as if it were not the Agent or the Foreign Currency
Funding Agent.

     Section 8.6 Action by Agent.

     (a) Except as may otherwise be expressly stated in this Agreement,
the Agent shall be entitled to use its discretion with respect to
exercising or refraining from exercising any rights which may be vested
in it by, or with respect to taking or refraining from taking any action
or actions which it may be able to take under or in respect of, the Loan
Documents. The Agent shall be required to act or to refrain from acting
(and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Required Banks, and such instructions shall
be binding upon all holders of Notes; provided, however, that the Agent
shall not be required to take any action which exposes the Agent to
personal liability or which is contrary to the Loan Documents or
applicable law. The Agent shall incur no liability under or in respect
of any of the Loan Documents by acting upon any notice, consent,
certificate, warranty or other paper or instrument believed by it to be
genuine or authentic or to be signed by the proper party or parties and
to be consistent with the terms of this Agreement.

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     (b) Notwithstanding anything to the contrary contained herein or in
any other Loan Document, the Agent is hereby irrevocably authorized by
each relevant Bank (without requirement of notice to or consent of any
such Bank or any Bank Affiliate or any other counterparty to any Rate
Contract) to take any action requested by the relevant Borrower having
the effect of releasing any collateral or guarantee obligations (i) to
the extent necessary to permit consummation of any transaction not
prohibited by Section 6.2 or (ii) under the circumstances described in
paragraph (b) below.

     (c) At such time as the Obligations (other than obligations under or
in respect of Rate Contract) shall have been paid in full, the
Commitments, the collateral for the Obligations shall (without the
requirement of notice or consent of any Bank or any Bank Affiliate or any
other counterparty to any Rate Contract) be released from the Liens
created by the Security Documents, and the Security Documents and all
obligations (other than those expressly stated to survive such
termination) of the Agent and each Borrower under the Security Documents
shall terminate, all without delivery of any instrument or performance of
any act by any Person.

     Section 8.7 Credit Analysis. Each Bank has made, and shall continue to
make, its own independent investigation or evaluation of the operations,
business, property and condition, financial and otherwise, of any Borrower in
connection with entering into this Agreement and has made its own appraisal of
the creditworthiness of each Borrower. Except as explicitly provided herein,
neither the Agent nor the Syndication Agent nor the Foreign Currency Funding
Agent has any duty or responsibility, either initially or on a continuing
basis, to provide any Bank with any credit or other information with respect to
such operations, business, property, condition or creditworthiness, whether
such information comes into its possession on or before the first Event of
Default or at any time thereafter.

     Section 8.8 Notices of Event of Default, Etc. In the event that the Agent
or the Foreign Currency Funding Agent shall have acquired actual knowledge of
any Event of Default or Default, the Agent or the Foreign Currency Funding
Agent hall promptly give notice thereof to the Banks. Neither the Foreign
Currency Funding Agent nor the Agent be deemed to have knowledge or notice of
any Default or Event of Default, except with respect to actual defaults in the
payment of principal, interest and fees required to be paid to the Agent for
the account of the Banks, unless the Agent shall have received written notice
from a Bank or a Borrower referring to this Agreement, describing such Default
or Event of Default and stating that such notice is a “Notice of Default”.

     Section 8.9 Indemnification. Each Bank agrees to indemnify the Agent and
the Syndication Agent and the Foreign Currency Funding Agent, as Agent and
Syndication Agent and Foreign Currency Funding Agent, respectively (to the
extent not reimbursed by the Borrowers), ratably according to such Bank’s Total
Percentage from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever which may be imposed on or incurred by the
Agent or the Syndication Agent or the Foreign Currency Funding Agent in any way
relating to or arising out of the Loan Documents or any action taken or omitted
by the Agent or the Syndication Agent or the Foreign Currency Funding Agent
under the Loan Documents, provided that no Bank shall be liable for any portion
of such liabilities, obligations, losses, damages,

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penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from the Agent’s or the Syndication Agent’s or the Foreign Currency
Funding Agent’s gross negligence or willful misconduct. No payment by any Bank
under this Section shall relieve any Borrower of any of its obligations under
this Agreement.

     Section 8.10 Payments and Collections. All funds received by the Agent in
respect of any payments made by any Borrower on the Term Notes and the Term
Notes (Foreign Currency) shall be distributed forthwith by the Agent among the
Banks, in like currency and funds as received, ratably according to each Bank’s
Term Loan Percentage or Term Loan Percentage (Foreign Currency). All funds
received by the Agent in respect of any payments made by any Borrower on the
Revolving Notes, Revolving Commitment Fees or Letter of Credit Fees shall be
distributed forthwith by the Agent among the Banks, in like currency and funds
as received, ratably according to each Bank’s Revolving Percentage. After any
Event of Default has occurred, all funds received by the Agent, whether as
payments by the Borrowers or as realization on collateral or on any guaranties,
shall (except as may otherwise be required by law) be distributed by the Agent
in the following order: (a) first to the Agent or any Bank who has incurred
unreimbursed costs of collection with respect to any Obligations hereunder,
ratably to the Agent and each Bank in the proportion that the costs incurred by
the Agent or such Bank bear to the total of all such costs incurred by the
Agent and all Banks; (b) next to the Agent for the account of the Banks (in
accordance with their respective Revolving Percentages) for any unpaid
Revolving Commitment Fees or Letter of Credit Fees owing by the Borrowers
hereunder; (c) next to the Agent for the account of the Banks (in accordance
with their respective Total Percentages) for application to interest on the
Notes and any Rate Protection Obligations; (d) next to the Agent for the
account of the Banks (in accordance with their respective Total Percentages)
for application to principal on the Notes and any Rate Protection Obligations;
and (e) last to the Agent to be held in the Holding Account to cover any
outstanding Letters of Credit.

     Section 8.11 Sharing of Payments. If any Bank shall receive and retain
any payment, voluntary or involuntary, whether by setoff, application of
deposit balance or security, or otherwise, in respect of Indebtedness under
this Agreement or the Notes in excess of such Bank’s share thereof as
determined under this Agreement, then such Bank shall purchase from the other
Banks for cash and at face value and without recourse, such participation in
the Notes held by such other Banks as shall be necessary to cause such excess
payment to be shared ratably as aforesaid with such other Banks; provided, that
if such excess payment or part thereof is thereafter recovered from such
purchasing Bank, the related purchases from the other Banks shall be rescinded
ratably and the purchase price restored as to the portion of such excess
payment so recovered, but without interest. Subject to the participation
purchase obligation above, each Bank agrees to exercise any and all rights of
setoff, counterclaim or banker’s lien first fully against any Notes and
participations therein held by such Bank, next to any other Indebtedness of the
Borrowers to such Bank arising under or pursuant to this Agreement and to any
participations held by such Bank in Indebtedness of the Borrowers arising under
or pursuant to this Agreement, and only then to any other Indebtedness of any
Borrower to such Bank.

     Section 8.12 Advice to Banks. The Agent shall forward to the Banks copies
of all notices, financial reports and other communications received hereunder
from the Borrowers by it

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as Agent, excluding, however, notices, reports and communications which by
the terms hereof are to be furnished by the Borrowers directly to each Bank.

     Section 8.13 Defaulting Bank.

     (a) Remedies Against a Defaulting Bank. In addition to the rights
and remedies that may be available to the Agent or the Borrowers under
this Agreement or applicable law, if at any time a Bank is a Defaulting
Bank such Defaulting Bank’s right to collect Revolving Commitment Fees or
to participate in the administration of the Loans, this Agreement and the
other Loan Documents, including without limitation, any right to vote in
respect of, to consent to or to direct any action or inaction of the
Agent or to be taken into account in the calculation of the Required
Banks, shall be suspended while such Bank remains a Defaulting Bank;
provided, however, that the Commitments of such Bank may not be increased
and the period of such Commitments may not be extended without such
Bank’s consent. If a Bank is a Defaulting Bank because it has failed to
make timely payment to the Agent of any amount required to be paid to the
Agent hereunder (without giving effect to any notice or cure periods), in
addition to other rights and remedies which the Agent or the Borrowers
may have under the immediately preceding provisions or otherwise, the
Agent shall be entitled (i) to collect interest from such Defaulting Bank
on such delinquent payment for the period from the date on which the
payment was due until the date on which the payment is made at the
Federal Funds Rate, (ii) to withhold or setoff and to apply in
satisfaction of the defaulted payment and any related interest, any
amounts otherwise payable to such Defaulting Bank under this Agreement or
any other Loan Document until such defaulted payment and related interest
has been paid in full and such default no longer exists and (iii) to
bring an action or suit against such Defaulting Bank in a court of
competent jurisdiction to recover the defaulted amount and any related
interest. Any amounts received by the Agent in respect of a Defaulting
Bank’s Loans shall not be paid to such Defaulting Bank and shall be held
uninvested by the Agent and either applied against the purchase price of
such Loans under the following subsection (b) or paid to such Defaulting
Bank upon the default of such Defaulting Bank being cured.

     (b) Purchase from Defaulting Bank. Any Bank that is not a
Defaulting Bank shall have the right, but not the obligation, in its sole
discretion, to acquire all of a Defaulting Bank’s Commitments. If more
than one Bank exercises such right, each such Bank shall have the right
to acquire such proportion of such Defaulting Bank’s Commitments on a pro
rata basis. Upon any such purchase, the Defaulting Bank’s interest in
its Loans and its rights hereunder (but not its liability in respect
thereof or under the Loan Documents or this Agreement to the extent the
same relate to the period prior to the effective date of the purchase)
shall terminate on the date of purchase, and the Defaulting Bank shall
promptly execute all documents reasonably requested to surrender and
transfer such interest to the purchaser thereof subject to and in
accordance with the requirements set forth in Section 9.6, including an
Assignment in form acceptable to the Agent. The purchase price for the
Commitments of a Defaulting Bank shall be equal to the amount of the
principal balance of the Loans outstanding and owed by the Borrowers to
the Defaulting Bank. The purchaser shall pay to the Defaulting Bank in
Immediately Available Funds on the date of such purchase the principal of
and accrued and unpaid

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interest and fees on the Loans made by such Defaulting Bank
hereunder (it being understood that such accrued and unpaid interest and
fees may be paid pro rata to the purchasing Bank and the Defaulting Bank
by the Agent at a subsequent date upon receipt of payment of such amounts
from the Borrowers). Prior to payment of such purchase price to a
Defaulting Bank, the Agent shall apply against such purchase price any
amounts retained by the Agent pursuant to the last sentence of the
immediately preceding subsection (a). The Defaulting Bank shall be
entitled to receive amounts owed to it by the Borrowers under the Loan
Documents which accrued prior to the date of the default by the
Defaulting Bank, to the extent the same are received by the Agent from or
on behalf of the Borrowers. There shall be no recourse against any Bank
or the Agent for the payment of such sums except to the extent of the
receipt of payments from any other party or in respect of the Loans.

     Section 8.14 Resignation. If at any time USBNA or the Foreign Currency
Funding Agent shall deem it advisable, in its sole discretion, it may submit to
each of the Banks and the Borrowers’ Agent a written notification of its
resignation as such the relevant agent under this Agreement, such resignation
to be effective upon the appointment of a successor agent, but in no event
later than 30 days from the date of such notice. Upon submission of such
notice, the Required Banks may appoint a successor Agent or Foreign Currency
Funding Agent, but if no Event of Default shall have occurred and be continuing
then such appointment shall be subject to the consent of the Company not to be
unreasonably withheld or delayed.

     Section 8.15 Co-Agent; Syndication Agent. Comerica Bank has been
designated by the Company as “Syndication Agent” under this Agreement. Other
than its rights and remedies as a Bank hereunder, the Syndication Agent shall
have no administrative, collateral or other rights or responsibilities,
provided, however, that Syndication Agent shall be entitled to the benefits
afforded to the Agent under Sections 8.3, 8.4, 8.7 and 8.9 hereof.

ARTICLE IX

MISCELLANEOUS

     Section 9.1 Modifications. Notwithstanding any provisions to the contrary
herein, any term of this Agreement may be amended with the written consent of
the Borrowers; provided that no amendment, modification or waiver of any
provision of this Agreement or any other Loan Document or consent to any
departure therefrom by any Borrower or other party thereto shall in any event
be effective unless the same shall be in writing and signed by the Required
Banks, and then such amendment, modification, waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
(The Agent may enter into amendments or modifications of, and grant consents
and waivers to departure from the provisions of, those Loan Documents to which
the Banks are not signatories without the Banks joining therein, provided the
Agent has first obtained the separate prior written consent to such amendment,
modification, consent or waiver from the Required Banks.) Notwithstanding the
forgoing, no such amendment, modification, waiver or consent shall:

     (a) Reduce the rate or extend the time of payment of interest
thereon (other than the waiver of additional interest or fees during an
Event of Default, which shall only

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require the consent of the Required Banks), or reduce the amount of
the principal thereof, or modify any of the provisions of any Note with
respect to the payment or repayment thereof (other than the postponement
or delay of the date on which any mandatory prepayment, is required to be
made under Sections 2.8(b), (c) or (d), which shall only require the
consent of the Required Banks), without the consent of the holder of each
Note so affected; or

     (b) Increase the amount or extend the time of any Commitment of any
Bank, without the consent of such Bank; or

     (c) Reduce the rate or extend the time of payment of any fee payable
to a Bank, without the consent of the Bank affected; or

     (d) Except as may otherwise be expressly provided in any of the
other Loan Documents, release any material portion of collateral
securing, or any guaranties for, all or any part of the Obligations
without the consent of all the Banks; or

     (e) Amend the definition of Required Banks or otherwise reduce the
percentage of the Banks required to approve or effectuate any such
amendment, modification, waiver, or consent, without the consent of all
the Banks; or

     (f) Amend any of the foregoing Sections 9.1 (a) through (e) or this
Section 9.1 (f) without the consent of all the Banks; or

     (g) Amend any provision of this Agreement relating to the Agent in
its capacity as Agent without the consent of the Agent; or

     (h) Amend any provision of this Agreement relating to the issuance
of Letters of Credit without the consent of the Agent.

     Section 9.2 Expenses. Whether or not the transactions contemplated hereby
are consummated, the Borrowers agree to reimburse the Agent and the Syndication
Agent (within 10 days of demand, or, if an Event of Default is continuing,
immediately upon demand) demand for all reasonable out-of-pocket expenses paid
or incurred by the Agent and the Syndication Agent including filing and
recording costs and fees and expenses of outside counsel to the Agent and
outside counsel to the Syndication Agent (determined on the basis of such
counsels’ generally applicable rates, which may be higher than the rates such
counsel charges the Agent or the Syndication Agent in certain matters) and/or
the allocated costs of in-house counsel incurred from time to time during the
continuation of an Event of Default, in connection with the negotiation,
preparation, approval, review, execution and delivery of this Agreement and the
other Loan Documents and any commitment letters relating thereto, together with
such expenses incurred by the Agent or the Syndication Agent (and its
respective counsel) with respect to the administration, amendment, modification
and interpretation of this Agreement and the other Loan Documents. The
Borrowers shall also reimburse the Agent and each Bank upon demand for all
reasonable out-of-pocket expenses (including expenses of legal counsel) paid or
incurred by the Agent or any Bank in connection with the collection and
enforcement of this Agreement and any other Loan Document. The obligations of
the Borrowers under this Section shall survive any termination of this
Agreement.

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     Section 9.3 Waivers, etc. No failure on the part of the Agent or the
holder of a Note to exercise and no delay in exercising any power or right
hereunder or under any other Loan Document shall operate as a waiver thereof;
nor shall any single or partial exercise of any power or right preclude any
other or further exercise thereof or the exercise of any other power or right.
The remedies herein and in the other Loan Documents provided are cumulative and
not exclusive of any remedies provided by law.

     Section 9.4 Notices. Except when telephonic notice is expressly
authorized by this Agreement, any notice or other communication to any party in
connection with this Agreement shall be in writing and shall be sent by manual
delivery, facsimile transmission, overnight courier or United States mail
(postage prepaid) addressed to such party at the address specified on the
signature page hereof, or at such other address as such party shall have
specified to the other party hereto in writing. All periods of notice shall be
measured from the date of delivery thereof if manually delivered, from the date
of sending thereof if sent by facsimile transmission, from the first Business
Day after the date of sending if sent by overnight courier, or from four days
after the date of mailing if mailed; provided, however, that any notice to the
Agent or any Bank under Article II hereof shall be deemed to have been given
only when received by the Agent or such Bank.

     Section 9.5 Taxes. The Borrowers agree to pay, and save the Agent and the
Banks harmless from all liability for, any stamp or other taxes which may be
payable with respect to the execution or delivery of this Agreement or the
issuance of the Notes, which obligation of the Borrowers shall survive the
termination of this Agreement.

     Section 9.6 Successors and Assigns; Participations; Purchasing Banks.

     (a) This Agreement shall be binding upon and inure to the benefit of
the Borrowers, the Agent, the Banks, all future holders of the Notes, and
their respective successors and assigns, except that the Borrowers may
not assign or transfer any of its rights or obligations under this
Agreement without the prior written consent of each Bank.

     (b) Any Bank may, in the ordinary course of its commercial banking
business and in accordance with applicable law, at any time sell to one
or more banks or other financial institutions (“Participants”)
participating interests in any Revolving Loan or Term Loan or Term Loan
(Foreign Currency) or other Obligation owing to such Bank, any Revolving
Note or Term Note or Term Note (Foreign Currency) held by such Bank, and
any Revolving Commitment or Term Loan Commitment or Term Loan Commitment
(Foreign Currency) of such Bank, or any other interest of such Bank
hereunder. In the event of any such sale by a Bank of participating
interests to a Participant, (i) such Bank’s obligations under this
Agreement to the other parties to this Agreement shall remain unchanged,
(ii) such Bank shall remain solely responsible for the performance
thereof, (iii) such Bank shall remain the holder of any such Revolving
Note or Term Note or Term Note (Foreign Currency) for all purposes under
this Agreement, (iv) the Borrowers, the Borrowers’ Agent and the Agent
shall continue to deal solely and directly with such Bank in connection
with such Bank’s rights and obligations under this Agreement and (v) the
agreement pursuant to which such Participant acquires its

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participating interest herein shall provide that such Bank shall
retain the sole right and responsibility to enforce the Obligations,
including, without limitation the right to consent or agree to any
amendment, modification, consent or waiver with respect to this Agreement
or any other Loan Document, provided that such agreement may provide that
such Bank will not consent or agree to any such amendment, modification,
consent or waiver with respect to the matters set forth in Sections
9.1(a)-(e) without the prior consent of such Participant. Each Borrower
agrees that if amounts outstanding under this Agreement, the Revolving
Notes, the Term Notes, the Term Notes (Foreign Currency) and the Loan
Documents are due and unpaid, or shall have been declared or shall have
become due and payable upon the occurrence of an Event of Default, each
Participant shall be deemed to have, to the extent permitted by
applicable law, the right of setoff in respect of its participating
interest in amounts owing under this Agreement and any Revolving Note,
Term Note, Term Note (Foreign Currency) or other Loan Document to the
same extent as if the amount of its participating interest were owing
directly to it as a Bank under this Agreement or any Revolving Note or
Term Note or Term Note (Foreign Currency) or other Loan Document;
provided, that such right of setoff shall be subject to the obligation of
such Participant to share with the Banks, and the Banks agree to share
with such Participant, as provided in Section 8.11. Each Borrower also
agrees that each Participant shall be entitled to the benefits of
Sections 2.21, 2.22, 2.23, 2.24 and 9.2 with respect to its participation
in the Revolving Commitments, Term Loan Commitments, Term Loan
Commitments (Foreign Currency), Revolving Loans, Term Loans (Foreign
Currency) and Term Loans; provided, that no Participant shall be entitled
to receive any greater amount pursuant to such subsections than the
transferor Bank would have been entitled to receive in respect of the
amount of the participation transferred by such transferor Bank to such
Participant had no such transfer occurred.

     (c) Each Bank may, from time to time, with the consent of the Agent
and the Borrowers’ Agent (neither of which consents shall be unreasonably
withheld or delayed; and if an Event of Default shall have occurred and
be continuing, then consent of the Borrowers’ Agent shall not be
required), assign to other lenders (“Assignees”) all or part of its
rights or obligations hereunder or under any Loan Document evidenced by
any Revolving Note in a minimum amount of $5,000,000 then held by that
Bank, together with equivalent Dollar Amount proportions of its Revolving
Commitment, any Term Note, and any Term Note (Foreign Currency) then
held by that Bank and its Term Loan Commitment and Term Loan Commitment
(Foreign Currency) pursuant to written agreements executed by such
assigning Bank, such Assignee(s), the Borrowers and the Agent in
substantially the form of Exhibit 9.6, which agreements shall specify in
each instance the portion of the Obligations evidenced by the Revolving
Notes and Term Notes and Term Notes (Foreign Currency) which is to be
assigned to each Assignee and the portion of the Revolving Commitment and
Term Loan Commitment and Term Loan Commitment (Foreign Currency) of such
Bank to be assumed by each Assignee (each, an “Assignment Agreement”);
provided, however, that the assigning Bank must pay to the Agent a
processing and recordation fee of $5,000 per assignment. Upon the
execution of each Assignment Agreement by the assigning Bank, the
relevant Assignee, the Borrowers and the Agent, payment to the assigning
Bank by such Assignee of the purchase price for the portion of the
Obligations being acquired by it and receipt by the Borrowers’ Agent of a
copy of the relevant Assignment Agreement, (x) such Assignee lender shall

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thereupon become a “Bank” for all purposes of this Agreement with a
ratable share of the Revolving Commitment and a Term Loan Commitment and
a Term Loan Commitment (Foreign Currency) in the amount set forth in such
Assignment Agreement and with all the rights, powers and obligations
afforded a Bank under this Agreement, (y) such assigning Bank shall have
no further liability for funding the portion of its Commitment assumed by
such Assignee and (z) the address for notices to such Assignee shall be
as specified in the Assignment Agreement executed by it. Concurrently
with the execution and delivery of each Assignment Agreement, the
assigning Bank shall surrender to the Agent the Revolving Note and Term
Note and a Term Note (Foreign Currency) a portion of which is being
assigned, and the Borrowers shall execute and deliver a Revolving Note
and Term Note and a Term Note (Foreign Currency) to the Assignee in the
amount of its Revolving Commitment and its Term Loan Commitment and its
Term Loan Commitment (Foreign Currency), respectively, and a new
Revolving Note and Term Note and Term Note (Foreign Currency) to the
assigning Bank in the amount of its Revolving Commitment and Term Loan
Commitment and Term Loan Commitment (Foreign Currency), respectively,
after giving effect to the reduction occasioned by such assignment, all
such Notes to constitute “Revolving Notes” and “Term Notes” and “Term
Notes (Foreign Currency)” for all purposes of this Agreement and of the
other Loan Documents.

     (d) The Borrowers shall not be liable for any costs incurred by the
Banks in effecting any participation under subparagraph (b) of this
subsection or by the Banks in effecting any assignment under subparagraph
(c) of this subsection except with respect to the Agent as provided in
this Section 9.6.

     (e) Each Bank may disclose to any Assignee or Participant and to any
prospective Assignee or Participant any and all financial information in
such Bank’s possession concerning the Borrowers or any of their
Subsidiaries (if any) which has been delivered to such Bank by or on
behalf of the Borrowers or any of their Subsidiaries pursuant to this
Agreement or which has been delivered to such Bank by or on behalf of the
Borrowers or any of their Subsidiaries in connection with such Bank’s
credit evaluation of such Borrower or any of its Subsidiaries prior to
entering into this Agreement, provided that prior to disclosing such
information, such Bank shall first obtain the agreement of such
prospective Assignee or Participant to comply with the provisions of
Section 9.7.

     (f) Notwithstanding any other provision in this Agreement, any Bank
may at any time create a security interest in, or pledge, all or any
portion of its rights under and interest in this Agreement and any note
held by it in favor of any federal reserve bank in accordance with
Regulation A of the Board or U. S. Treasury Regulation 31 CFR § 203.14,
and such Federal Reserve Bank may enforce such pledge or security
interest in any manner permitted under applicable law.

     Section 9.7 Confidentiality of Information. The Agent and each Bank shall
use reasonable efforts to assure that information about the Borrowers and their
operations, affairs and financial condition, not generally disclosed to the
public or to trade and other creditors, which is furnished to the Agent or such
Bank pursuant to the provisions hereof is used only for the

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purposes of this Agreement and any other relationship between any Bank and
any Borrower and shall not be divulged to any Person other than the Banks,
their Affiliates and their respective officers, directors, employees and
agents, except: (a) to their attorneys and accountants, (b) in connection with
the enforcement of the rights of the Agent or the Banks under the Loan
Documents or otherwise in connection with applicable litigation, (c) in
connection with assignments and participations and the solicitation of
prospective assignees and participants referred to in the immediately preceding
Section, (d) if such information is generally available to the public other
then as a result of disclosure by the Agent or a Bank, (e) to any direct or
indirect contractual counterparty in any hedging arrangement or such
contractual counterparty’s professional advisor, (f) to any nationally
recognized rating agency that requires information about a Bank’s investment
portfolio in connection with ratings issued with respect to such Bank, and (g)
as may otherwise be required or requested by any regulatory authority having
jurisdiction over the Agent or any Bank or by any applicable law, rule,
regulation or judicial process that, in the opinion of the Agent or such Bank’s
counsel, is binding on the parties hereto. Neither the Agent nor any Bank
shall incur any liability to any Borrower by reason of any disclosure permitted
by this Section 9.7.

     Section 9.8 Governing Law and Construction. THE VALIDITY, CONSTRUCTION
AND ENFORCEABILITY OF THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO CONFLICT OF
LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS OF THE UNITED STATES
APPLICABLE TO NATIONAL BANKS. Whenever possible, each provision of this
Agreement and the other Loan Documents and any other statement, instrument or
transaction contemplated hereby or thereby or relating hereto or thereto shall
be interpreted in such manner as to be effective and valid under such
applicable law, but, if any provision of this Agreement, the other Loan
Documents or any other statement, instrument or transaction contemplated hereby
or thereby or relating hereto or thereto shall be held to be prohibited or
invalid under such applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement, the
other Loan Documents or any other statement, instrument or transaction
contemplated hereby or thereby or relating hereto or thereto.

     Section 9.9 Consent to Jurisdiction. AT THE OPTION OF THE AGENT, THIS
AGREEMENT AND THE OTHER BORROWER LOAN DOCUMENTS MAY BE ENFORCED IN ANY FEDERAL
COURT OR NEW YORK STATE COURT SITTING IN NEW YORK CITY; AND EACH BORROWER
CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY
ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT ANY
BORROWER COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT
OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED
BY THIS AGREEMENT, THE AGENT AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE
TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF SUCH
TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE
DISMISSED WITHOUT PREJUDICE.

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     Section 9.10 Waiver of Jury Trial. EACH BORROWER , THE AGENT AND EACH
BANK IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

     Section 9.11 Survival of Agreement. All representations, warranties,
covenants and agreement made by each Borrower herein or in the other Borrower
Loan Documents and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan
Document shall be deemed to have been relied upon by the Banks and shall
survive the making of the Loans by the Banks and the execution and delivery to
the Banks by the Borrowers of the Notes, regardless of any investigation made
by or on behalf of the Banks, and shall continue in full force and effect as
long as any Obligation (other than, notwithstanding anything to the contrary,
inchoate indemnification Obligations) is outstanding and unpaid and so long as
the Commitments have not been terminated; provided, however, that the
obligations of the Borrowers under Section 9.2, 9.5 and 9.12 shall survive
payment in full of the Obligations and the termination of the Commitments.

     Section 9.12 Indemnification. The Borrowers hereby agree to defend,
protect, indemnify and hold harmless the Agent and the Banks and their
respective Affiliates and the directors, officers, employees, attorneys and
agents of the Agent and the Banks and their respective Affiliates (each of the
foregoing being an “Indemnitee” and all of the foregoing being collectively the
“Indemnitees”) from and against any and all third party claims, actions,
damages, liabilities, judgments, costs and expenses (including all reasonable
fees and disbursements of counsel which may be incurred in the investigation or
defense of any matter) imposed upon, incurred by or asserted against any
Indemnitee, whether direct, indirect or consequential and whether based on any
federal, state, local or foreign laws or regulations (including securities
laws, environmental laws, commercial laws and regulations), under common law or
on equitable cause, or on contract or otherwise:

     (a) by reason of, relating to or in connection with the execution,
delivery, performance or enforcement of any Loan Document, any
commitments relating thereto, or any transaction contemplated by any Loan
Document; or

     (b) by reason of, relating to or in connection with any credit
extended or used under the Loan Documents or any act done or omitted by
any Person, or the exercise of any rights or remedies thereunder,
including the acquisition of any collateral by the Banks by way of
foreclosure of the Lien thereon, deed or bill of sale in lieu of such
foreclosure or otherwise;

provided, however, that the Borrowers shall not be liable to any Indemnitee for
any portion of such claims, damages, liabilities and expenses resulting from
such Indemnitee’s or its officer’s, director’s, employee’s or agent’s gross
negligence or willful misconduct. In the event this indemnity is unenforceable
as a matter of law as to a particular matter or consequence referred to herein,
it shall be enforceable to the full extent permitted by law.

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     This indemnification applies, without limitation, to any act, omission,
event or circumstance existing or occurring on or prior to the later of the
Termination Date or the date of payment in full of the Obligations, including
specifically Obligations arising under clause (b) of this Section. The
indemnification provisions set forth above shall be in addition to any
liability any Borrower may otherwise have. Without prejudice to the survival
of any other obligation of the Borrowers hereunder the indemnities and
obligations of the Borrowers contained in this Section shall survive the
payment in full of the other Obligations. Notwithstanding the foregoing, no
Foreign Subsidiary shall be liable for any indemnity applicable to the Company
or any Domestic Subsidiary that is not a Subsidiary of such Foreign Subsidiary.

     Section 9.13 Captions. The captions or headings herein and any table of
contents hereto are for convenience only and in no way define, limit or
describe the scope or intent of any provision of this Agreement.

     Section 9.14 Entire Agreement. This Agreement and the other Borrower Loan
Documents embody the entire agreement and understanding between the Borrowers,
the Agent and the Banks with respect to the subject matter hereof and thereof.
This Agreement supersedes all prior agreements and understandings relating to
the subject matter hereof. Nothing contained in this Agreement or in any other
Loan Document, expressed or implied, is intended to confer upon any Persons
other than the parties hereto any rights, remedies, obligations or liabilities
hereunder or thereunder.

     Section 9.15 Counterparts. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

     Section 9.16 Borrower Acknowledgments. Each Borrower hereby acknowledges
that (a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents, (b) neither the Agent
nor any Bank has any fiduciary relationship to such Borrower, the relationship
being solely that of debtor and creditor, (c) no joint venture exists between
such Borrower and the Agent or any Bank, and (d) neither the Agent nor any Bank
undertakes any responsibility to such Borrower to review or inform such
Borrower of any matter in connection with any phase of the business or
operations of such Borrower and such Borrower shall rely entirely upon its own
judgment with respect to its business, and any review, inspection or
supervision of, or information supplied to, the Borrowers by the Agent or any
Bank is for the protection of the Banks and neither such Borrower nor any third
party is entitled to rely thereon.

     Section 9.17 Appointment of and Acceptance by Borrowers’ Agent. Each of
the Borrowers hereby appoints and authorizes the Borrowers’ Agent to take such
action as its agent on its behalf and to exercise such powers under the Loan
Documents as are delegated to the Borrowers’ Agent by the terms thereof,
together with such power that are reasonably incidental thereto, and the
Borrowers’ Agent hereby accepts such appointment.

98

 

     Section 9.18 Relationship Among Borrowers.

     (a) Waivers of Defenses. The obligations of the Borrowers hereunder
shall not be released, in whole or in part, by any action or thing which
might, but for this provision of this Agreement, be deemed a legal or
equitable discharge of a surety or guarantor, other than irrevocable
payment and performance in full of the Obligations (except for contingent
indemnity and other contingent Obligations not yet due and payable) at a
time after any obligation of the Banks hereunder to make the Term Loans,
Term Loans (Foreign Currency) and Revolving Loans and of the Agent to
issue Letters of Credit shall have expired or been terminated and all
outstanding Letters of Credit shall have expired or the liability of the
Agent thereon shall have otherwise been discharged. The purpose and
intent of this Agreement is that the Obligations constitute the direct
and primary obligations of each Borrower and that the covenants,
agreements and all obligations of each Borrower hereunder be absolute,
unconditional and irrevocable. Each Borrower shall be and remain liable
for any deficiency remaining after foreclosure of any mortgage, deed of
trust or security agreement securing all or any part of the Obligations,
whether or not the liability of any other Person for such deficiency is
discharged pursuant to statute, judicial decision or otherwise.

     (b) Other Transactions. The Banks and the Agent are expressly
authorized to exchange, surrender or release with or without
consideration any or all collateral and security which may at any time be
placed with it by the Borrowers or by any other Person on behalf of the
Borrowers, or to forward or deliver any or all such collateral and
security directly to the Borrowers for collection and remittance or for
credit. No invalidity, irregularity or unenforceability of any security
for the Obligations or other recourse with respect thereto shall affect,
impair or be a defense to the Borrowers’ obligations under this
Agreement. The liabilities of each Borrower hereunder shall not be
affected or impaired by any failure, delay, neglect or omission on the
part of any Bank or the Agent to realize upon any of the Obligations of
any other Borrower to the Banks or the Agent, or upon any collateral or
security for any or all of the Obligations, nor by the taking by any
Bank or the Agent of (or the failure to take) any guaranty or guaranties
to secure the Obligations, nor by the taking by any Bank or the Agent of
(or the failure to take or the failure to perfect its security interest
in or other lien on) collateral or security of any kind. No act or
omission of any Bank or the Agent, whether or not such action or failure
to act varies or increases the risk of, or affects the rights or remedies
of a Borrower, shall affect or impair the obligations of the Borrowers
hereunder.

     (c) Actions Not Required. Each Borrower, to the extent permitted by
applicable law, hereby waives any and all right to cause a marshaling of
the assets of any other Borrower or any other action by any court or
other governmental body with respect thereto or to cause any Bank or the
Agent to proceed against any security for the Obligations or any other
recourse which any Bank or the Agent may have with respect thereto and
further waives any and all requirements that any Bank or the Agent
institute any action or proceeding at law or in equity, or obtain any
judgment, against any other Borrower or any other Person, or with respect
to any collateral security for the Obligations, as a condition precedent
to making demand on or bringing an action or obtaining and/or enforcing
a judgment against, such Borrower under this Agreement.

99

 

     (d) No Subrogation. Notwithstanding any payment or payments made by
any Borrower hereunder or any setoff or application of funds of any
Borrower by any Bank or the Agent, such Borrower shall not be entitled to
be subrogated to any of the rights of any Bank or the Agent against any
other Borrower or any other guarantor or any collateral security or
guaranty or right of offset held by any Bank or the Agent for the payment
of the Obligations, nor shall such Borrower seek or be entitled to seek
any contribution or reimbursement from any other Borrower or any other
guarantor in respect of payments made by such Borrower hereunder, until
all amounts owing to the Banks and the Agent by the Borrowers on account
of the Obligations are irrevocably paid in full (with the exception of
contingent indemnity obligations). If any amount shall be paid to a
Borrower on account of such subrogation rights at any time when all of
the Obligations shall not have been irrevocably paid in full (with the
exception of contingent indemnity obligations), such amount shall be held
by that Borrower in trust for the Banks and the Agent, segregated from
other funds of that Borrower, and shall, forthwith upon receipt by the
Borrower, be turned over to the Agent in the exact form received by the
Borrower (duly indorsed by the Borrower to the Agent, if required), to be
applied against the Obligations, whether matured or unmatured, in such
order as the Agent may determine.

     (e) Application of Payments. Any and all payments upon the
Obligations made by the Borrowers or by any other Person, and/or the
proceeds of any or all collateral or security for any of the Obligations,
may be applied by the Banks on such items of the Obligations as the Banks
may elect.

     (f) Recovery of Payment. If any payment received by the Banks or
the Agent and applied to the Obligations is subsequently set aside,
recovered, rescinded or required to be returned for any reason
(including, without limitation, the bankruptcy, insolvency or
reorganization of a Borrower or any other obligor), the Obligations to
which such payment was applied shall, to the extent permitted by
applicable law, be deemed to have continued in existence, notwithstanding
such application, and each Borrower shall be jointly and severally liable
for such Obligations as fully as if such application had never been made.
References in this Agreement to amounts “irrevocably paid” or to
“irrevocable payment” refer to payments that cannot be set aside,
recovered, rescinded or required to be returned for any reason.

     (g) Borrowers’ Financial Condition. Each Borrower is familiar with
the financial condition of the other Borrowers, and each Borrower has
executed and delivered this Agreement based on that Borrower’s own
judgment and not in reliance upon any statement or representation of the
Banks or the Agent. The Banks and the Agent shall have no obligation to
provide any Borrower with any advice whatsoever or to inform any Borrower
at any time of the Bank’s actions, evaluations or conclusions on the
financial condition or any other matter concerning the Borrowers.

     (h) Bankruptcy of the Borrowers. Each Borrower expressly agrees
that, to the extent permitted by applicable law, the liabilities and
obligations of that Borrower under this Agreement shall not in any way be
impaired or otherwise affected by the institution by or against any other
Borrower or any other Person of any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or any other similar
proceedings for

100

 

relief under any bankruptcy law or similar law for the relief of
debtors and that any discharge of any of the Obligations pursuant to any
such bankruptcy or similar law or other law shall not diminish, discharge
or otherwise affect in any way the obligations of that Borrower under
this Agreement, and that upon the institution of any of the above
actions, such obligations shall be enforceable against that Borrower.

     (i) Limitation; Insolvency Laws. As used in this subsection
9.18(i): (a) the term “Applicable Insolvency Laws” means the laws of the
United States of America or of any State, province, nation or other
governmental unit relating to bankruptcy, reorganization, arrangement,
adjustment of debts, relief of debtors, dissolution, insolvency,
fraudulent transfers or conveyances or other similar laws (including,
without limitation, 11 U. S. C. §547, §548, §550 and other “avoidance”
provisions of Title 11 of the United Stated Code) as applicable in any
proceeding in which the validity and/or enforceability of this Agreement
against any Borrower, or any Specified Lien is in issue; and (b)
“Specified Lien” means any security interest, mortgage, lien or
encumbrance granted by any Borrower securing the Obligations, in whole or
in part. Notwithstanding any other provision of this Agreement, if, in
any proceeding, a court of competent jurisdiction determines that with
respect to any Borrower, this Agreement or any Specified Lien would, but
for the operation of this Section, be subject to avoidance and/or
recovery or be unenforceable by reason of Applicable Insolvency Laws,
this Agreement and each such Specified Lien shall be valid and
enforceable against such Borrower, only to the maximum extent that would
not cause this Agreement or such Specified Lien to be subject to
avoidance, recovery or unenforceability. To the extent that any payment
to, or realization by, the Banks or the Agent on the Obligations exceeds
the limitations of this Section and is otherwise subject to avoidance and
recovery in any such proceeding, the amount subject to avoidance shall in
all events be limited to the amount by which such actual payment or
realization exceeds such limitation, and this Agreement as limited shall
in all events remain in full force and effect and be fully enforceable
against such Borrower. This Section is intended solely to reserve the
rights of the Banks and the Agent hereunder against each Borrower, in
such proceeding to the maximum extent permitted by Applicable Insolvency
Laws and neither the Borrowers, any guarantor of the Obligations nor any
other Person shall have any right, claim or defense under this Section
that would not otherwise be available under Applicable Insolvency Laws in
such proceeding.

     Section 9.19 Interest Rate Limitation. Notwithstanding anything herein to
the contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts that are treated as interest on such
Loan under applicable law (collectively, the “Charges”), shall exceed the
maximum lawful rate (the “Maximum Rate”) that may be contracted for, charged,
taken, received or reserved by the Bank holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of
the operation of this Section shall be cumulated and the interest and Charges
payable to such Bank in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest

101

 

thereon at the Federal Funds Effective Rate to the date of repayment,
shall have been received by such Bank.

     Section 9.20 Currency Indemnity. If, for the purposes of obtaining
judgment in any court in any jurisdiction with respect to this Agreement or any
other Loan Document, it becomes necessary to convert into the currency of such
jurisdiction (the “Judgment Currency”) any amount due under this Agreement or
under any other Loan Document in any currency other than the Judgment Currency
(the “Currency Due”), then conversion shall be made at the rate of exchange
prevailing on the Business Day before the day on which judgment is given. For
this purpose, “rate of exchange” means the rate at which the Agent is able, on
the relevant date, to purchase the Currency Due with the Judgment Currency in
accordance with its normal practice at its office in Minneapolis, Minnesota.
In the event that there is a change in the rate of exchange prevailing between
the Business Day before the day on which the judgment is given and the date of
receipt by the Agent of the amount due, the relevant Borrower will, on the date
of receipt by the relevant Administrative Agent, pay such additional amounts,
if any, or be entitled to receive reimbursement of such amount, if any, as may
be necessary to ensure that the amount received by the Agent on such date is
the amount in the Judgment Currency which when converted at the rate of
exchange prevailing on the date of receipt by the Agent is the amount then due
under this Agreement or such other Loan Document in the Currency Due. If the
amount of the Currency Due which the Agent is so able to purchase is less than
the amount of the Currency Due originally due to it, the relevant Borrower
shall indemnify and save the Agent and the relevant Banks harmless from and
against all loss or damage arising as a result of such deficiency. This
indemnity shall constitute an obligation separate and independent from the
other obligations contained in this Agreement and the other Loan Documents,
shall give rise to a separate and independent cause of action, shall apply
irrespective of any indulgence granted by the Agent or any Bank from time to
time and shall continue in full force and effect notwithstanding any judgment
or order for a liquidated sum in respect of an amount due under this Agreement
or any other Loan Document or under any judgment or order.

[Signature Pages follow.]

102

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first above written.

	 	 	 	 	 
	 	 	COMMERCIAL VEHICLE GROUP, INC.
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO
	Address:
	 	 	 	 
	6530 Campus Way
	 	 	 	 
	New Albany, Ohio 43054
	 	 	 	 
	Fax: (614) 289-5371
	 	 	 	 
	Attention: Jeff Vogel
	 	 	 	 
	 	 	COMMERCIAL VEHICLE SYSTEMS, INC.
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO
	 
	 	 	 	 
	 	 	NATIONAL SEATING COMPANY
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO
	 
	 	 	 	 
	 	 	TRIM SYSTEMS OPERATING CORP.
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO
	 
	 	 	 	 
	 	 	TRIM SYSTEMS, L.L.C.
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO

[Signature Page to Revolving Credit and Term Loan Agreement]

S - 1

 

	 	 	 	 	 
	 	 	TEMPRESS, INC.
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO
	 
	 	 	 	 
	 	 	CVS HOLDINGS, INC.
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO
	 
	 	 	 	 
	 	 	TRIM SYSTEMS, INC.
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO

[Signature Page to Revolving Credit and Term Loan Agreement]

S - 2

 

	 	 	 	 	 
	 	 	FOREIGN CURRENCY BORROWERS:
	 
	 	 	 	 
	 	 	COMMERCIAL VEHICLE SYSTEMS LIMITED
	 
	 	 	 	 
	

	 	By
	 	/s/ Mervin Dunn
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title President & CEO
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO
	 
	 	 	 	 
	 	 	KAB SEATING LIMITED
	 
	 	 	 	 
	

	 	By
	 	/s/ Mervin Dunn
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title President & CEO
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO
	 
	 	 	 	 
	 	 	BOSTROM LIMITED
	 
	 	 	 	 
	

	 	By
	 	/s/ Mervin Dunn
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title President & CEO
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 	 	Title CFO

[Signature Page to Revolving Credit and Term Loan Agreement]

S - 3

 

	 	 	 	 	 
	 	 	BOSTROM INTERNATIONAL LIMITED
	 
	 	 	 	 
	

	 	By
	 	/s/ Mervin Dunn
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title President & CEO
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO
	 
	 	 	 	 
	 	 	CVS HOLDINGS LIMITED
	 
	 	 	 	 
	

	 	By
	 	/s/ Mervin Dunn
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title President & CEO
	 
	 	 	 	 
	

	 	By
	 	/s/ Chad M. Utrup
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title CFO

[Signature Page to Revolving Credit and Term Loan Agreement]

S - 4

 

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	

	 	By
	 	/s/ [Illegible]
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title Senior Vice President
	 
	 	 	 	 
	 	 	In its individual corporate capacity and as Agent
	 	 	Address:
	 	 	800 Nicollet Mall
	 	 	Minneapolis, MN 55402
	 	 	Fax: 612-303-2258
	 	 	Attention: Robert A. Rosati

[Signature Page to Revolving Credit and Term Loan Agreement]

S - 5

 

	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 
	

	 	By
	 	/s/ [Illegible]
	

	 	 	 	
 
	 
	 	 	 	 
	 	 	Title Vice President
	 
	 	 	 	 
	 	 	Address:
	 	 	Comerica Tower
	 	 	500 Woodward Avenue
	 	 	Detroit, Michigan 48226
	 	 	Fax: 313-222-3389
	 	 	Attention: Matthew T. Breight

[Signature Page to Revolving Credit and Term Loan Agreement]

S - 6

 

Schedule 1.1(b)

to Revolving Credit and

Term Loan Agreement

COMMITMENT AMOUNTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Term Loan
	 	 	Revolving	 	Term Loan	 	Commitment
	 	 	Commitment	 	Commitment	 	Amount (Foreign
	Bank
	 	Amount
	 	Amount
	 	Currency)

	U.S. Bank National Association

	 	$	20,000,000	 	 	$	26,000,000	 	 	£3,526,858.35
	Comerica Bank

	 	$	20,000,000	 	 	$	26,000,000	 	 	£3,526,858.35

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]