Document:

Exhibit 4.2

CUSIP NO. 597780AE7

REGISTERED

PRINCIPAL AMOUNT U.S.$100,000,000

No. 1

 

McCORMICK &
COMPANY, INCORPORATED

U.S.$100,000,000 5.80% NOTE DUE 2011

If the registered owner
of this Security (as indicated below) is The Depository Trust Company (the “Depository”)
or a nominee of the Depository, this Security is a Global Security and the
following two legends apply:

UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND SUCH CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO., OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

UNLESS AND UNTIL THIS CERTIFICATE IS EXCHANGED
IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS CERTIFICATE MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE THEREOF OR BY A
NOMINEE THEREOF TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY
THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR OF THE DEPOSITORY OR A
NOMINEE OF SUCH SUCCESSOR.

IF APPLICABLE, THE “TOTAL AMOUNT OF OID”, “YIELD
TO MATURITY” AND “INITIAL ACCRUAL PERIOD OID” (COMPUTED UNDER THE APPROXIMATE
METHOD) BELOW WILL BE COMPLETED SOLELY FOR THE PURPOSES OF APPLYING THE FEDERAL
INCOME TAX ORIGINAL ISSUE DISCOUNT (“OID”) RULES.

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  ISSUE PRICE: $99,995,000

  	
   

  	
  OPTION TO ELECT REPAYMENT:

  
	
   

  	
   

  	
  o o YES  ox NO

  
	
   

  	
   

  	
   

  
	
  ORIGINAL ISSUE DATE: July 13, 2006

  	
   

  	
  OPTIONAL REPAYMENT DATE[S]:

  
	
   

  	
   

  	
   

  
	
  STATED MATURITY DATE:

  	
   

  	
  MINIMUM DENOMINATION:

  
	
  July 15, 2011

  	
   

  	
  o $1,000

  
	
   

  	
   

  	
   

  
	
  SPECIFIED CURRENCY:

  United States Dollars:

  o x YES  o
  o NO

  	
   

  	
  ADDITIONAL AMOUNTS:

   

  DEFEASANCE: o x YES  o
  o NO

  
	
   

  	
   

  	
   

  
	
  Foreign Currency:

  	
   

  	
  COVENANT DEFEASANCE:

  
	
   

  	
   

  	
  ox YES  o
  o NO

  
	
   

  	
   

  	
   

  
	
  EXCHANGE RATE AGENT:

  	
   

  	
  TOTAL AMOUNT OF OID:

  
	
   

  	
   

  	
   

  
	
  OPTION TO RECEIVE PAYMENTS IN

  SPECIFIED CURRENCY OTHER THAN

  U.S. DOLLARS: o o YES  o x NO

  	
   

  	
  YIELD TO MATURITY: 5.801

  
	
   

  	
   

  	
  INITIAL ACCRUAL PERIOD OID:

  
	
   

  	
   

  	
   

  
	
  INTEREST RATE: 5.80%

  	
   

  	
  SINKING FUND:

  
	
   

  	
   

  	
   

  
	
  PRINCIPAL FINANCIAL CENTER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  INTEREST PAYMENT DATES IF OTHER 

  THAN APRIL 15 AND OCTOBER 15: 

  January 15 and July 15

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  REGULAR RECORD DATES IF OTHER 

  THAN APRIL 1 AND OCTOBER 1: 

  January 1 and July 1

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  OPTIONAL REDEMPTION:  x YES   o NO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  INITIAL REDEMPTION DATE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  INITIAL REDEMPTION PERCENTAGE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ANNUAL REDEMPTION PERCENTAGE 

  REDUCTION:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  OTHER/DIFFERENT PROVISIONS:

  	
   

  	
   

  

 

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McCORMICK &
COMPANY, INCORPORATED, a Maryland corporation (herein referred to as the “Company”,
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of U.S.$100,000,000 on the Stated
Maturity Date shown above (except to the extent redeemed or repaid prior to the
Stated Maturity Date) and to pay interest, if any, thereon at the Interest Rate
shown above from the Original Issue Date shown above or from the most recent
Interest Payment Date to which interest, if any, has been paid or duly provided
for, semiannually on January 15 and July 15 of each year (unless
other Interest Payment Dates are shown on the face hereof) (each, an “Interest
Payment Date”) until the principal hereof is paid or made available for payment
and on the Stated Maturity Date, any Redemption Date or Repayment Date (such
terms are together hereinafter referred to as the “Maturity Date” with respect
to the principal repayable on such date); provided, however, that any payment
of principal (or premium, if any) or interest, if any, to be made on any
Interest Payment Date or on the Maturity Date that is not a Business Day (as
defined below) shall be made on the next succeeding Business Day with the same
force and effect as if made on such Interest Payment Date or the Maturity Date,
as the case may be, and no additional interest, if any, shall accrue on the
amount so payable as a result of such delayed payment. For purposes of this
Security, unless otherwise specified on the face hereof, “Business Day” means
any day that is not a Saturday or Sunday and that is neither a legal holiday
nor a day on which commercial banks are authorized or required by law,
regulation or executive order to close in The City of New York; provided,
however, that, if the Specified Currency shown above is a foreign currency,
such day is also not a day on which commercial banks are authorized or required
by law, regulation or executive order to close in the Principal Financial
Center (as defined below) of the country issuing the Specified Currency (or, if
the Specified Currency is the euro, such day is also a day on which the
Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET)
System is open). “Principal Financial Center” means the capital city of the
country issuing the Specified Currency except that with respect to United
States dollars, Australian dollars, Canadian dollars, Deutsche marks, Dutch
guilders, South African rand and Swiss francs, the “Principal Financial Center”
shall be The City of New York, Sydney and (solely in the case of the Specified
Currency) Melbourne, Toronto, Frankfurt, Amsterdam, Johannesburg and Zurich,
respectively.

Any interest hereon will
accrue from, and including, the immediately preceding Interest Payment Date in
respect of which interest, if any, has been paid or duly provided for (or from,
and including, the Original Issue Date if no interest has been paid or duly
provided for) to, but excluding, the succeeding Interest Payment Date or the
Maturity Date, as the case may be. The interest, if any, so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture and subject to certain exceptions described herein
(referred to on the reverse hereof), be paid to the person (the “Holder”) in
whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the January 1 or July 1 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date
(unless other Regular Record Dates are specified on the face hereof) (each, a “Regular
Record Date”); provided, however, that, if this Security was issued between a
Regular Record Date and the initial Interest Payment Date relating to such
Regular Record Date, interest, if any, for the period beginning on the Original
Issue Date and ending on such initial Interest Payment Date shall be paid on
the Interest Payment Date following the next succeeding 

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Regular Record Date to the Holder hereof on such
next succeeding Regular Record Date; and provided further that interest, if
any, payable on the Maturity Date will be payable to the person to whom the
principal hereof shall be payable. Any such interest not so punctually paid or
duly provided for on any Interest Payment Date other than the Maturity Date (“Defaulted
Interest”) will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on a special record date (the “Special Record Date”) for the payment of such
Defaulted Interest to be fixed by the Trustee (referred to on the reverse
hereof), notice whereof shall be given to the Holder of this Security not less
than ten days prior to such Special Record Date, or may be paid at any time in
any other lawful manner, all as more fully provided in the Indenture.

Unless otherwise
specified above, all payments in respect of this Security will be made in U.S.
dollars regardless of the Specified Currency shown above unless the Holder
hereof makes the election described below. If the Specified Currency shown
above is other than U.S. dollars, the Exchange Rate Agent (referred to on the
reverse hereof) will arrange to convert any such amounts so payable in respect
hereof into U.S. dollars in the manner described on the reverse hereof;
provided, however, that the Holder hereof may, if so indicated above, elect to
receive all or any specified portion of any payment of principal, premium, if
any, and/or interest, if any, in respect of this Security in such Specified
Currency by delivery of a written request to the corporate trust office of the
Trustee in The City of New York, currently the office of the Trustee located at
SunTrust Bank, c/o SunTrust Robinson Humphrey Capital Markets, 3rd Floor, 125 Broad
Street, New York, New York 10004, or at such other office in The City of New
York, as the Company may determine, on or prior to the applicable Regular
Record Date or at least fifteen days prior to the Maturity Date, as the case
may be. Such request may be in writing (mailed or hand delivered) or by cable,
telex or other form of facsimile transmission. The Holder hereof may elect to
receive payment in such Specified Currency for all principal, premium, if any,
and interest payments, if any, and need not file a separate election for each
payment. Such election will remain in effect until revoked by written notice to
the Trustee, but written notice of any such revocation must be received by the
Trustee on or prior to the applicable Regular Record Date or at least fifteen
days prior to the Maturity Date, as the case may be.

Notwithstanding the
foregoing, if the Company determines that the Specified Currency is not
available for making payments in respect hereof due to the imposition of
exchange controls or other circumstances beyond the Company’s control, or is no
longer used by the government of the country issuing such currency or for the
settlement of transactions by public institutions of or within the
international banking community, then the Holder hereof may not so elect to
receive payments in the Specified Currency and any such outstanding election
shall be automatically suspended, until the Company determines that the
Specified Currency is again available for making such payments. Any payment
made under such circumstances in U.S. dollars where the required payment is in
a Specified Currency will not constitute a default under the Indenture.

In the event of an
official redenomination of the Specified Currency, the obligations of the
Company with respect to payments on this Security, in all cases, shall be
deemed immediately following such redenomination to provide for payment of that
amount of redenominated currency representing the amount of such obligations
immediately before such 

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redenomination. In no event shall any adjustment
be made to any amount payable hereunder as a result of any change in the value
of the Specified Currency shown above relative to any other currency due solely
to fluctuations in exchange rates.

Until this Security is
paid in full or payment therefor in full is duly provided for, the Company will
at all times maintain a Paying Agent (which Paying Agent may be the Trustee) in
The City of New York, currently the office of the Trustee located at SunTrust
Bank, c/o SunTrust Robinson Humphrey Capital Markets, 3rd Floor, 125 Broad
Street, New York, New York 10004, or at such other office in The City of New
York, as the Company may determine (which, unless otherwise specified above,
shall be the “Place of Payment”). The Company has initially appointed SunTrust
Bank, at its office in The City of New York, currently the office of the
Trustee located at SunTrust Bank, c/o SunTrust Robinson Humphrey Capital
Markets, 3rd Floor, 125 Broad Street, New York, New York
10004, or at such other office in The City of New York as the Company may
determine as Paying Agent.

Unless otherwise shown
above, payment of interest on this Security (other than on the Maturity Date)
will be made by check mailed to the registered address of the Holder hereof as
of the Regular Record Date; provided, however, that, if (i) the Specified
Currency is U.S. dollars and this is a Global Security (as defined on the
reverse hereof) or (ii) the Specified Currency is a Foreign Currency, and
the Holder has elected to receive payments in such Specified Currency as provided
for above, such interest payments will be made by transfer of immediately
available funds, but only if appropriate wire transfer instructions have been
received in writing by the Trustee on or prior to the applicable Regular Record
Date. Simultaneously with any election by the Holder hereof to receive payments
in respect hereof in the Specified Currency (if other than U.S. dollars), such
Holder may provide appropriate wire transfer instructions to the Trustee, and
all such payments will be made in immediately available funds to an account
maintained by the payee with a bank, but only if such bank has appropriate
facilities therefor. Unless otherwise specified above, the principal hereof
(and premium, if any) and interest, if any, hereon payable on the Maturity Date
will be paid in immediately available funds upon surrender of this Security at
the office of the Trustee maintained for that purpose at SunTrust Bank, c/o
SunTrust Robinson Humphrey Capital Markets, 3rd Floor, 125 Broad Street, New York, New York
10004, or at such other office in The City of New York, as the Company may
determine. The Company will pay any administrative costs imposed by banks in
making payments in immediately available funds but, except as otherwise
provided under Additional Amounts above, any tax, assessment or governmental
charge imposed upon payments will be borne by the Holders of the Securities in
respect of which such payments are made.

Interest on this
Security, if any, will be computed on the basis of a 360-day year of
twelve 30-day months.

REFERENCE IS HEREBY MADE
TO THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE HEREOF,
WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET
FORTH AT THIS PLACE.

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Unless the
certificate of authentication hereon has been executed by the Trustee by manual
signature, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed under its
facsimile corporate seal.

 

	
  

  	
   

  	
  McCORMICK & COMPANY, INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Paul C. Beurd 

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President Finance and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Francis A. Contino

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President Strategic

  Planning and Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  [CORPORATE SEAL]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  W. Geoffrey Carpenter

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Associate General Counsel and

  Assistant Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

Dated:   July 13,
2006

 6
 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

	
  

  	
   

  	
  This is one of the Securities of the series
  designated

  therein referred to in the within-mentioned
  Indenture

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUNTRUST BANK,

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Authorized Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 7

 

[REVERSE OF NOTE]

McCORMICK & COMPANY, INCORPORATED

U.S.$100,000,000
5.80% NOTE DUE 2011

Section 1.   General.   This
Security is one of a duly authorized issue of securities (herein called the “Securities”)
of the Company, issued and to be issued in one or more series under that
certain Indenture, dated as of December 5, 2000, as it may be supplemented
from time to time (herein called the “Indenture”), between the Company and
SunTrust Bank, Trustee (herein called the “Trustee”, which term includes any
successor trustee under the Indenture with respect to a series of which this
Security is a part), to which Indenture and all indentures supplemental
thereto, reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered.

Section 2.   Payments.   If
the Specified Currency is other than U.S. dollars and the Holder hereof fails
to elect payment in such Specified Currency in accordance with the procedures
set forth on the face hereof, the amount of U.S. dollar payments to be made in
respect hereof will be determined by the Exchange Rate Agent specified on the
face hereof or a successor thereto (the “Exchange Rate Agent”) based on the
highest bid quotation in The City of New York at approximately 11:00 A.M.,
New York City time, on the second Business Day preceding the applicable payment
date received by the Exchange Rate Agent from three recognized foreign exchange
dealers (one of whom may be the Exchange Rate Agent) selected by the Exchange
Rate Agent and approved by the Company for the purchase by the quoting dealer
of the Specified Currency for U.S. dollars for settlement on such payment date
in the aggregate amount of the Specified Currency payable to all holders of
Securities scheduled to receive U.S. dollar payments and at which the
applicable dealer commits to execute a contract. If three such bid quotations
are not available, payments will be made in the Specified Currency.

If the Specified
Currency is other than U.S. dollars and the Holder hereof has elected payment
in such Specified Currency in accordance with the procedures set forth on the
face hereof and the Specified Currency is not available due to the imposition
of exchange controls or to other circumstances beyond the Company’s control,
the Company will be entitled to satisfy its obligations to the Holder of this
Security by making such payment in U.S. dollars on the basis of the noon buying
rate in The City of New York for cable transfers of such Specified Currency as
certified for customs purposes (or, if not so certified, as otherwise
determined) by the Federal Reserve Bank of New York (the “Market Exchange Rate”)
as computed by the Exchange Rate Agent on the second Business Day prior to the
applicable payment date or, if the Market Exchange Rate is then not available,
on the basis of the most recently available Market Exchange Rate or as otherwise
indicated above. Any payment made under such circumstances in U.S. dollars
where the required payment is in a Specified Currency will not constitute a
default under the Indenture.

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All determinations
referred to above made by the Exchange Rate Agent shall be at its sole
discretion (except to the extent expressly provided that any determination is
subject to approval by the Company) and, in the absence of manifest error,
shall be conclusive for all purposes and binding on the Holder of this
Security, and the Exchange Rate Agent shall have no liability therefor.

All currency exchange
costs will be borne by the Company.

References herein to “U.S.
dollars” or “U.S. $” or “$” are to the currency of the United States of
America.

Section 3.   Redemption.   If
so specified on the face hereof, the Company may at its option redeem this
Security in whole or from time to time in part in increments of $1,000
(provided that any remaining principal amount of this Security shall not be
less than the Minimum Denomination specified on the face hereof) at the greater
of (i) 100% of the unpaid principal amount hereof or (ii) the sum of
the present values of the remaining scheduled payments of principal and
interest thereon (exclusive of interest accrued to the date of redemption)
discounted to the redemption date on a semiannual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Treasury Rate plus 15
basis points, plus, in either case, accrued and unpaid interest thereon to the
date of redemption. The Company may exercise such option by causing the Trustee
to mail a notice of such redemption at least 30 but not more than 60 days prior
to the Redemption Date. In the event of redemption of this Security in part
only, a new Security or Securities for the unredeemed portion hereof shall be
issued in the name of the Holder hereof upon the cancellation hereof. If less
than all of the Securities with like tenor and terms to this Security are to be
redeemed, the Securities to be redeemed shall be selected by the Trustee by
such method as the Trustee shall deem fair and appropriate. However, if less
than all the Securities of the series with differing tenor and terms to this
Security are to be redeemed, then the Company in its sole discretion shall
select the particular Securities to be redeemed and shall notify the Trustee in
writing thereof at least 45 days prior to the relevant Redemption Date.

Section 4.   Repayment.   If
so specified on the face hereof, this Security shall be repayable prior to the
Stated Maturity Date at the option of the Holder on each applicable Optional
Repayment Date shown on the face hereof at a repayment price equal to 100% of
the principal amount to be repaid, together with accrued interest, if any, to
the Repayment Date. In order for this Security to be repaid, the Trustee must
receive at least 30 but not more than 45 days prior to an Optional Repayment
Date, this Security with the form attached hereto entitled “Option to Elect
Repayment” duly completed. Any tender of this Security for repayment shall be
irrevocable. The repayment option may be exercised by the Holder of this
Security in whole or in part in increments of $1,000 (provided that any
remaining principal amount of this Security shall not be less than the Minimum
Denomination specified on the face hereof). Upon any partial repayment, this
Security shall be canceled and a new Security or Securities for the remaining
principal amount hereof shall be issued in the name of the Holder of this
Security.

Section 5.   Discount Securities.   If
this Security (such a Security being referred to as a “Discount Security”) (a) has
been issued at an Original Issue Price lower, by more than a de minimis amount
(as determined under United States federal income tax rules applicable to 

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original issue discount instruments), than the
stated redemption price at maturity (as defined below) hereof and (b) would
be considered an original issue discount security for United States federal
income tax purposes, then the amount payable on this Security in the event of
redemption by the Company, repayment at the option of the Holder or
acceleration of the maturity hereof, in lieu of the principal amount due at the
Stated Maturity Date hereof, shall be the Amortized Face Amount (as defined
below) of this Security as of the date of such redemption, repayment or
acceleration. The “Amortized Face Amount” of this Security shall be the amount
equal to the sum of (a) the Issue Price (as set forth on the face hereof)
plus (b) the aggregate of the portions of the original issue discount (the
excess of the amounts considered as part of the “stated redemption price at
maturity” of this Security within the meaning of Section 1273(a)(2) of
the Internal Revenue Code of 1986, as amended (the “Code”), whether denominated
as principal or interest, over the Issue Price of this Security) which shall
theretofore have accrued pursuant to Section 1272 of the Code (without
regard to Section 1272(a)(7) of the Code) from the date of issue of
this Security to the date of determination, minus (c) any amount
considered as part of the “stated redemption price at maturity” of this
Security which has been paid on this Security from the date of issue to the
date of determination.

Section 6.   Modification and Waivers;
Obligation of the Company Absolute.   The Indenture permits, with
certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Securities of each series. Such amendment may be effected under
the Indenture at any time by the Company and the Trustee with the consent of
the Holders of not less than a majority in principal amount of Outstanding
Securities of each series affected thereby. The Indenture also contains
provisions permitting the Holders of not less than a majority in principal
amount of the Outstanding Securities of any series, on behalf of the Holders of
all Outstanding Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture. Provisions in the Indenture also
permit the Holders of not less than a majority in principal amount of all
Outstanding Securities of any series to waive on behalf of all of the Holders
of Securities of such series certain past defaults under the Indenture and
their consequences. Any such consent or waiver shall be conclusive and binding
upon the Holder of this Security and upon all future Holders of this Security
and of any Security issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Security.

The Securities are
unsecured and rank pari passu with all other unsecured and unsubordinated
indebtedness of the Company.

No reference herein to
the Indenture and no provision of this Security or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of (and premium, if any) and interest, if any, on this
Security at the times, place and rate, and in the Specified Currency herein
prescribed, except as set forth in Section 2 hereof.

Section 7.   Defeasance and Covenant
Defeasance.   The Indenture contains provisions for defeasance at any
time of (a) the entire indebtedness of the Company on this Security and (b) certain
restrictive covenants and the related defaults and Events of Default, upon
compliance 

 10
 

 

by the Company with certain conditions set forth
therein, which provisions apply to this Security, unless otherwise specified on
the face hereof.

Section 8.   Minimum Denomination;
Authorized Denominations.   Unless otherwise provided on the face
hereof, this Security is issuable only in registered form without coupons in
denominations of $1,000 or any amount in excess thereof which is an integral
multiple of $1,000. If this Security is denominated in a Specified Currency
other than U.S. dollars or is a Discount Security, this Security shall be
issuable in the denominations set forth on the face hereof.

Section 9.   Registration of Transfer.
  As provided in the Indenture and subject to certain limitations
herein and therein set forth, the transfer of this Security is registrable in
the Security Register upon surrender of this Security for registration of
transfer at a Place of Payment for the series of Securities of which this
Security forms a part, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series, of like authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

If the registered owner
of this Security is the Depository (such a Security being referred to as a “Global
Security”), and (i) the Depository is at any time unwilling or unable to
continue as depository and a successor depository is not appointed by the
Company within 90 days following notice to the Company or (ii) an Event of
Default occurs, the Company will issue Securities in certificated form in
exchange for this Global Security. In addition, the Company may at any time,
and in its sole discretion, determine not to have Securities represented by a
Global Security and, in such event, will issue Securities in certificated form
in exchange in whole for this Global Security. In any exchange pursuant to this
paragraph, the Company will execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of individual Securities of this
series in exchange for this Global Security, will authenticate and deliver
individual Securities of this series in certificated form in an aggregate
principal amount equal to the principal amount of this Global Security in
exchange herefor. Securities issued in exchange for this Global Security
pursuant to this paragraph shall be registered in such names and in such
authorized denominations as the Depository, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the Trustee. None
of the Company, the Trustee, any Paying Agent or the Security Registrar will
have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests in this Global
Security or for maintaining, supervising or reviewing any records relating to
such beneficial ownership interests. For purposes of the Indenture, this Global
Security constitutes a Security issued in permanent global form. Securities so
issued in certificated form will be issued in denominations of $1,000 (or such
other denomination as shall be specified on the face hereof) or any amount in
excess thereof which is an integral multiple of $1,000 and will be issued in
registered form only, without coupons.

As provided in the
Indenture and subject to certain limitations therein and herein set forth, this
Security is exchangeable for a like aggregate principal amount of Securities of
this series of different authorized denominations but otherwise having the same
terms and conditions, as requested by the Holder hereof surrendering the same.

 11
 

 

No service charge shall
be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith.

Prior to due presentment
of this Security for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Holder as the owner hereof
for all purposes, whether or not this Security be overdue, and none of the
Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

Section 10.   Events of Default.   If
an Event of Default with respect to the Securities of the series of which this
Security forms a part shall have occurred and be continuing, the principal of
this Security may be declared due and payable in the manner and with the effect
provided in the Indenture.

Section 11.   Defined Terms.   All
terms used in this Security which are defined in the Indenture and are not
otherwise defined herein shall have the meanings assigned to them in the
Indenture.

Section 12.   Governing Law.   Unless
otherwise specified on the face hereof, this Security shall be governed by and
construed in accordance with the law of the State of New York.

* * * * *

 12

 

ABBREVIATIONS

The following
abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to
applicable laws or regulations: 

	
  TEN COM

  	
  —

  	
  as tenants in common

  	
   

  	
   

  	
   

  	
   

  
	
  TEN ENT

  	
  —

  	
  as tenants by the entireties

  	
   

  	
   

  	
   

  
	
  JT TEN

  	
  —

  	
  as joint tenants with right of survivorship and not
  as tenants in common

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UNIF GIFT MIN ACT

  	
  —

  	
   

  	
  CUSTODIAN

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Cust.)

  	
   

  	
  (Minor)

  	
   

  	
   

  
	
   

  	
   

  	
  UNDER
  UNIFORM GIFTS TO MINORS ACT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (State)

  	
   

  	
   

  	
   

  

Additional abbreviations may also be used though
not in the above list.

 

FOR VALUE RECEIVED, the
undersigned

hereby sell(s), assign(s) and transfer(s) unto 

	
  PLEASE INSERT SOCIAL
  SECURITY OR

  OTHER

  IDENTIFYING
  NUMBER OF ASSIGNEE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

	
  

  
	
  Please print or type name and address, including zip
  code of assignee

  
	
   

  
	
   

  
	
  the within Security of McCORMICK & COMPANY,
  INCORPORATED and all rights thereunder and does hereby irrevocably constitute
  and appoint

  
	
   

  
	
   

  
	
  Attorney to transfer the said Security on the books
  of the within-named Company, with full power of substitution in the premises.

  
	
   

  

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  
	
  SIGNATURE GUARANTEED:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: The signature to this assignment must
  correspond with the name as it appears upon the face of the Security in every
  particular, without alteration or enlargement or any change whatsoever.

  

 

 

 13EXHIBIT 10.1

AMENDMENT AND RESTATEMENT AGREEMENT dated as of July 7, 2006 (this
“Agreement”), among SCIENTIFIC GAMES CORPORATION (the “Borrower”),
the LENDERS party hereto and JPMORGAN CHASE BANK, N.A., as administrative agent
(the “Administrative Agent”), under the Credit Agreement dated as of December 23,
2004, as amended and restated as of March 31, 2006, as amended (as in
effect on the date hereof, the “Existing Credit Agreement”), among the
Borrower, the lenders party thereto and the Administrative Agent.

WHEREAS the Borrower has requested, and the
Restatement Lenders and the Administrative Agent have agreed, upon the terms
and subject to the conditions set forth herein, that (a) the
Tranche D Term Lenders referred to below extend credit in the form of Tranche D
Term Loans on the Restatement Effective Date in an aggregate principal amount
equal to $150,000,000, and (b) the Existing Credit Agreement be amended
and restated as provided herein.

NOW, THEREFORE, the Borrower, the Restatement Lenders
and the Administrative Agent hereby agree as follows:

SECTION 1.   Defined
Terms. Capitalized terms used but not defined herein shall have the
meanings assigned to such terms in the Amended Credit Agreement referred to
below. As used in this Agreement, “Restatement Lenders” means, at any
time, (a) the Tranche D Term Lenders referred to below, (b) the
Required Lenders under (and as defined in) the Existing Credit Agreement and (c) the
Majority Facility Lenders with respect to the Tranche C Term Loan Facility
under (and as defined in) the Existing Credit Agreement.

SECTION 2.   Restatement
Effective Date. (a)The transactions provided for in Sections 3 and 4 hereof
shall be consummated at a closing to be held on the Restatement Effective Date
at the offices of Cravath, Swaine & Moore LLP, or at such other time
and place as the parties hereto shall agree upon.

(b)   The “Restatement Effective Date” shall be specified by
the Borrower, and shall be a date, not later than July 7, 2006, as of
which all the conditions set forth or referred to in Section 6 hereof
shall have been satisfied. The Borrower, by giving not less than one Business
Day’s written notice, (i) shall propose a date as the Restatement
Effective Date to the Administrative Agent and (ii) may change a
previously proposed date for the Restatement Effective Date. The Administrative
Agent shall notify the Restatement Lenders of the proposed date. This Agreement
shall terminate at 5:00 p.m., New York City time, on July 7, 2006, if
the Restatement Effective Date shall not have occurred at or prior to such
time.

SECTION 3.   Tranche
D Term Loans. (a)Subject to the terms and conditions set forth herein, each
Person identified on Schedule 2.1D hereto as a Tranche

 

D Term Lender (a “Tranche
D Term Lender”)
agrees to make a Tranche D Term Loan (a “Tranche D Term Loan”) to the
Borrower on the Restatement Effective Date in an aggregate principal amount not
exceeding its Tranche D Term Commitment. A Term Lender’s “Tranche D Term Commitment” means
its commitment to make Tranche D Term Loans hereunder, expressed as an amount
representing the maximum aggregate principal amount of Tranche D Term Loans to
be made by such Tranche D Term Lender, as set forth in Schedule 2.1D
hereto. The Tranche D Term Commitments are several and no Tranche D Term Lender
will be responsible for any other Tranche D Term Lender’s failure to make
Tranche D Term Loans. The Tranche D Term Loans shall be made in the manner
contemplated by paragraphs (c) and (d) of this Section.

(b)  Each Person that holds an existing
Tranche B Term Loan under, and as defined in, the Existing Credit Agreement (a “Tranche
B Term Loan”, and each such Person holding a Tranche B Term Loan being an “Existing
Tranche B Term Lender”) that executes this Agreement specifically in the
capacity of a “Renewing Term Lender” on a signature page hereto (a “Renewing
Term Lender”) will be deemed on the Restatement Effective Date to have
agreed to the terms of this Agreement and to have a Tranche D Term Commitment
in its capacity as a Renewing Term Lender equal to the lesser of its Tranche D
Term Commitment set forth on Schedule 2.ID hereto and the outstanding principal
amount of its Tranche B Term Loans immediately prior to the Restatement
Effective Date. Each Lender under the Existing Credit Agreement that executes
this Agreement specifically in the capacity of a Consenting Lender on a
signature page hereto which does not have a Tranche D Term Commitment set
forth on Schedule 2.1D hereto shall be deemed on the Restatement Effective Date
to have consented to this Agreement but shall not have any commitment to make
Tranche D Term Loans. Each Tranche D Term Lender (other than a Renewing Term
Lender in its capacity as such) is referred to herein as an “Additional Term
Lender”, it being understood that, if a Tranche D Term Lender is both a
Renewing Term Lender and an Additional Term Lender, then (i) its Tranche D
Term Commitment in its capacity as a Renewing Term Lender shall equal the
outstanding principal amount of its Existing Tranche B Term Loans and (ii) its
Tranche D Term Commitment in its capacity as an Additional Term Lender shall
equal the excess of its total Tranche D Term Commitment over the outstanding
principal amount of its Tranche B Term Loans.

(c)  The Tranche D Term Loans to be made
by each Renewing Term Lender on the Restatement Effective Date shall be made by
converting Indebtedness represented by the outstanding principal amount of its
Tranche B Term Loans (not exceeding its Tranche 
D Term Commitment) to, and exchanging such Indebtedness for, Tranche D
Term Loans in an equal principal amount (on a net basis without requiring any
transfer of funds), and such Indebtedness shall remain outstanding under the
Amended Credit Agreement as Tranche D Term Loans. The Tranche D Term Loans to
be made by each Additional Term Lender on the Restatement Effective Date shall
be made by transferring funds to the Administrative Agent, in the manner
contemplated by Section 2.2 of the Amended Credit Agreement, in an amount
equal to such Additional Term Lender’s Tranche D Term Commitment (in its
capacity as an Additional Term Lender).

 2
 

 

(d)  Tranche D Term Loans shall be made
on the Restatement Effective Date as Base Rate Loans or, if the Borrower shall
have delivered an irrevocable written request to such effect to the
Administrative Agent at least three Business Days prior to the Restatement
Effective Date, Eurocurrency Loans (with respect to any such request for
Eurocurrency Loans, it is understood and agreed that in the event the Tranche D
Term Loans are not borrowed on the Restatement Effective Date, the Borrower
shall compensate each Tranche D Term Lender for any loss, cost or expense
incurred by such Tranche D Term Lender in respect of such event to the same
extent as if such Tranche D Term Lender were entitled to compensation therefor
pursuant to Section 4.11 of the Existing Credit Agreement). The provisions
of Sections 2.2 and 4 of the Amended Credit Agreement shall apply for all
purposes of making the Tranche D Term Loans, except as otherwise provided
herein.

(e)  The Borrower hereby irrevocably
authorizes and directs the Administrative Agent on the Restatement Effective
Date to apply the proceeds of the Tranche D Term Loans to prepay, pursuant to Section 4.1(a) of
the Existing Credit Agreement, the Tranche B Term Loans outstanding as of such
date (other than those converted to and exchanged for Tranche D Term Loans as
provided above). On the Restatement Effective Date, the Borrower shall pay the
accrued and unpaid interest on the Tranche B Term Loans (including those
converted to and exchanged for Tranche D Term Loans as provided above) and any
other amounts (including amounts under Section 4.11 of the Existing Credit
Agreement) owing in respect of the Tranche B Term Loans. The conversion and
exchange of all or any portion of a Tranche B Term Loan for a Tranche D Term
Loan shall be treated as a repayment thereof for purposes of Section 4.11
of the Existing Credit Agreement.

(f)  Unless the Administrative Agent
shall have received notice from an Additional Term Lender prior to the
Restatement Effective Date that such Additional Term Lender will not make
available to the Administrative Agent such Additional Term  Lender’s share of such Tranche D Term Loan,
the Administrative Agent may assume that such Additional Term Lender has made
such share available on such date in accordance with this Section and may,
in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if any Additional Term Lender has in fact
defaulted in making its share of such Tranche D Term Loan, then the applicable
Additional Term Lender and the Borrower severally agree to pay to the
Administrative Agent forthwith on demand such defaulted amount (to the extent
so advanced by the Administrative Agent on behalf of such defaulting Additional
Term Lender), together with interest on such amount at the interest rate
applicable to Base Rate Loans from the Restatement Effective Date to the date
of payment. Upon any such payment by the Borrower, the Borrower shall have the
right, at the defaulting Additional Term Lender’s expense, upon notice to the
defaulting Additional Term Lender and to the Administrative Agent, to require
such defaulting Additional Term Lender to transfer and assign without recourse
(in accordance with and subject to the restrictions contained in Section 11.6
of the Amended Credit Agreement) all its interests, rights and obligations as
an Additional  Term Lender under the
Amended Credit Agreement to another financial institution which shall assume
such interests, rights and obligations, provided that (i) no such
assignment shall conflict with any law, rule or regulation or order of any
Governmental Authority 

 3
 

 

and (ii) the assignee shall pay, in immediately available funds on
the date of such assignment, (A) to the Administrative Agent, (1) the
outstanding principal of, and interest accrued to the date of payment on, the
defaulted amount of the Tranche D Term Loans advanced by the Administrative
Agent on the defaulting Additional Term Lender’s behalf under the Amended
Credit Agreement that was not paid by the Borrower to the Administrative Agent
pursuant to the preceding sentence and (2) all other amounts accrued for
the Administrative Agent’s account or owed to it under the Amended Credit
Agreement in respect of such defaulted amount of Tranche D Term Loans and (B) to
the Borrower, the outstanding principal of, and interest accrued to the date of
payment on, the defaulted amount of the Tranche D Term Loans that the Borrower
paid to the Administrative Agent pursuant to the preceding sentence.

SECTION 4.   Amendment and Restatement of the
Existing Credit Agreement; Loans and Letters of Credit; Amendment of Security
Documents.

(a)   Effective
on the Restatement Effective Date (i) the Existing Credit Agreement
(excluding the annexes, schedules and exhibits thereto that are not attached as
part of Exhibit A hereto) is hereby amended and restated to read in its
entirety as set forth in Exhibit A hereto (the “Amended Credit
Agreement”) and (ii) Schedule 2.1D hereto shall be deemed to be
Schedule 2.1D to the Amended Credit Agreement,. From and after the
effectiveness of such amendment and restatement, the terms “Agreement”, “this
Agreement”, “herein”, “hereinafter”, “hereto”, “hereof” and words of similar
import, as used in the Amended Credit Agreement, shall, unless the context
otherwise requires, refer to the Amended Credit Agreement, and the term “Credit
Agreement”, as used in the other Loan Documents, shall mean the Amended Credit
Agreement.

(b)   All Dollar Revolving Commitments
and Multicurrency Revolving Commitments in effect under the Existing Credit
Agreement on the Restatement Effective Date shall continue in effect under the
Amended Credit Agreement, and all Dollar Revolving Loans, Multicurrency
Revolving Loans, Swingline Loans, Dollar Letters of Credit, Multicurrency
Letters of Credit and Tranche C Term Loans outstanding under the Existing
Credit Agreement on the Restatement Effective Date shall continue to be
outstanding under the Amended Credit Agreement, and on and after the
Restatement Effective Date, the terms of the Amended Credit Agreement will
govern the rights and obligations of the Borrower, the Lenders, the applicable
Issuing Lenders and the Administrative Agent with respect thereto.

(c)   The amendment and restatement of
the Existing Credit Agreement as contemplated hereby shall not be construed to
discharge or otherwise affect any obligations of the Borrower accrued or
otherwise owing under the Existing Credit Agreement that have not been paid, it
being understood that such obligations will constitute obligations under the
Amended Credit Agreement.

(d)   The parties thereto that are
Lenders under, and as defined in, the Existing Credit Agreement hereby waive
any requirement under the Existing Credit Agreement of notice of prepayment of
Tranche B Term Loans under the Existing Credit Agreement provided for herein.

 4
 

 

(e)   The
Restatement Lenders hereby consent to any amendment of the Security Documents
that the Administrative Agent determines to be necessary or appropriate to
implement the provisions of this Agreement.

SECTION 5.   Conditions.
The consummation of the transactions set forth in Sections 3 and 4 of this
Agreement shall be subject to the satisfaction of the following conditions
precedent:

(a)   The Administrative Agent (or its
counsel) shall have received from each of the Borrower and the Restatement Lenders
either (i) a counterpart of this Agreement signed on behalf of such party
or (ii) written evidence satisfactory to the Administrative Agent (which
may include facsimile transmission of a signed signature page of this
Agreement) that such party has signed a counterpart of this Agreement.

(b)   The Administrative Agent shall have
received the following executed legal opinions:

(i) the legal opinion of Kramer Levin Naftalis & Frankel
LLP, counsel for the Borrower and its Subsidiaries, substantially in the form
of Exhibit B-1 hereto; and

(ii) the legal opinion of Ira Raphaelson, Vice President, General
Counsel and Secretary of the Borrower and its Subsidiaries, substantially in
the form of Exhibit B-2 hereto.

Each such legal opinion shall cover such other matters
incident to the transactions contemplated by this Agreement as the
Administrative Agent may reasonably require.

(c)   The Administrative Agent shall have
received such documents and certificates as the Administrative Agent or its
counsel may reasonably request relating to the organization, existence and good
standing of each Loan Party, the authorization of the Restatement Transactions
and any other legal matters relating to the Loan Parties, the Loan Documents or
the Restatement Transactions, all in form and substance reasonably satisfactory
to the Administrative Agent and its counsel.

(d)   Each of the conditions set forth in
Section 6.2 of the Amended Credit Agreement shall be satisfied, and the
Administrative Agent shall have received a certificate, dated the Restatement
Effective Date and signed by the Borrower, confirming satisfaction of the
conditions set forth in paragraphs (a) and (b) of Section 6.2
of the Amended Credit Agreement.

(e)   The Administrative Agent shall have
received all fees and other amounts due and payable in connection with this
Agreement on or prior to the Restatement Effective Date, including, to the
extent invoiced on or prior to the Restatement Effective Date, reimbursement or
payment of all expenses (including fees, charges and disbursements of counsel)
required to be reimbursed or paid by the Borrower.

 5
 

 

(f)   The
Administrative Agent shall have received a completed Perfection Certificate
dated the Restatement Effective Date and signed by an executive officer or
financial officer of the Borrower, together with all attachments contemplated
thereby.

(g)   To the extent not previously
received, the Administrative Agent shall have received (i) the
certificates representing the shares of Capital Stock pledged pursuant to the
Guarantee and Collateral Agreement, together with an undated stock power for
each such certificate executed in blank by a duly authorized officer of the
pledgor thereof and (ii) each promissory note (if any) pledged to the
Administrative Agent pursuant to the Guarantee and Collateral Agreement
endorsed (without recourse) in blank (or accompanied by an undated executed
transfer form in blank) by the pledgor thereof or such other action is taken
with respect to Pledged Stock of Foreign Subsidiaries as specified in the
Guarantee and Collateral Agreement.

(h)   To the extent not previously
received, the Administrative Agent shall have received each document (including
any Uniform Commercial Code financing statement) required by the Security
Documents or under law or reasonably requested by the Administrative Agent to
be filed, registered or recorded in order to create in favor of the
Administrative Agent, for the benefit of the Lenders, a perfected Lien on the
Collateral described therein prior and superior in right to any other Person
(other than with respect to Liens expressly permitted by Section 8.3 of
the Amended Credit Agreement), and each such document shall be in proper form
for filing, registration or recordation.

(i)   The Administrative Agent shall
have received such amendments to each Mortgage with respect to each Mortgaged
Property as the Administrative Agent shall determine to be necessary or
desirable in order to secure the additional extensions of credit contemplated
by this Agreement, as well as endorsements to existing Title Policies insuring
the Lien of each such Mortgage as so amended remains a valid first Lien on the
Mortgaged Property described therein.

(j)   The Administrative Agent shall have
received a Reaffirmation Agreement substantially in the form of Exhibit C
hereto, executed and delivered by each Loan Party.

(k)   The Administrative Agent shall have
received insurance certificates satisfying the requirements of Section 5.3(b) of
the Guarantee and Collateral Agreement.

(l)   The Borrower shall have made
arrangements satisfactory to the Administrative Agent for the prepayment of all
“Tranche B Term Loans” outstanding under (and as defined in) the Existing Credit
Agreement, and all accrued interest and other amounts payable in connection
therewith, substantially simultaneously with the borrowing of the Tranche D
Term Loans on the Restatement Effective Date.

(m)   Each Lender shall have received all
documentation and other information required by bank regulatory authorities
under applicable “know-your-customer” and anti-money laundering rules and
regulations, including, without limitation,

 6
 

 

the United States PATRIOT Act, to the extent reasonably requested
through the Administrative Agent within a reasonable period of time prior to
the Restatement Effective Date.

The Administrative Agent shall notify the Borrower and
the Restatement Lenders of the Restatement Effective Date, and such notice
shall be conclusive and binding. Notwithstanding the foregoing, the
consummation of the transactions set forth in Sections 3 and 4 of this
Agreement shall not become effective unless each of the foregoing conditions is
satisfied at or prior to 5:00 p.m., New York City time, on July 7,
2006 (and, in the event such conditions are not so satisfied or waived, this
Agreement shall terminate at such time).

SECTION 6.   Effectiveness;
Counterparts; Amendments. This Agreement shall become effective when copies
hereof which, when taken together, bear the signatures of the Borrower, the
Administrative Agent and the Restatement Lenders shall have been received by
the Administrative Agent. This Agreement may not be amended nor may any
provision hereof be waived except pursuant to a writing signed by the Borrower,
the Administrative Agent and the Restatement Lenders. This Agreement may be
executed in two or more counterparts, each of which shall constitute an
original but all of which when taken together shall constitute a single
contract. Delivery of an executed counterpart of a signature page of this
Agreement by facsimile or other electronic transmission shall be effective as
delivery of a manually executed counterpart of this Agreement.

SECTION 7.   No
Novation. This Agreement shall not extinguish the Loans outstanding under
the Existing Credit Agreement, except to the extent actually prepaid as
provided herein. The provisions of Sections 4.9, 4.10, 4.11 and 11.5 of
the Existing Credit Agreement will continue to be effective as to all matters
arising out of or in any way related to facts or events existing or occurring
prior to the Restatement Effective Date. This Agreement shall be a Loan
Document for all purposes.

SECTION 8.   Notices.
All notices hereunder shall be given in accordance with the provisions of Section 11.2
of the Amended Credit Agreement.

SECTION 9.   Applicable
Law; Waiver of Jury Trial. (A) THIS AGREEMENT
SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK.

(B)   EACH PARTY HERETO HEREBY AGREES AS
SET FORTH IN SECTION 11.16 OF THE AMENDED CREDIT AGREEMENT AS IF SUCH SECTION WERE
SET FORTH IN FULL HEREIN.

SECTION 10.   Headings.
The Section headings used herein are for convenience of reference only,
are not part of this Agreement and are not to affect the construction of, or to
be taken into consideration in interpreting, this Agreement.

 7
 

 

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

 

	
  

  	
  SCIENTIFIC GAMES
  CORPORATION,

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 8
 

 

 

	
  

  	
  JPMORGAN CHASE
  BANK, N.A., as Administrative Agent,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 9
 

 

 

 

 

 

	
  

  	
  SIGNATURE PAGE TO THE AMENDMENT AND RESTATEMENT
  AGREEMENT AMONG SCIENTIFIC GAMES CORPORATION, THE LENDERS PARTY THERETO AND
  JPMORGAN CHASE BANK, N.A., AS ADMINISTRATIVE AGENT,

  
	
   

  	
   

  	
   

  
	
   

  	
  Name of Institution:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Executing solely as a Consenting Lender

  
	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Executing as a Renewing Term Lender

  
	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  Executing as an Additional Term Lender

  
	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

 10
 

 

SCHEDULES AND EXHIBITS

	
  Schedules

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 2.1D

  	
   

  	
  Tranche D Term Commitments

  
	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Amended and Restated Credit Agreement

  
	
  Exhibit B-1

  	
   

  	
  Form of Opinion of Kramer Levin
  Naftalis & Frankel LLP

  
	
  Exhibit B-2

  	
   

  	
  Form of Opinion of Martin E. Schloss

  
	
  Exhibit C

  	
   

  	
  Form of Reaffirmation Agreement

  

 

 11

EXHIBIT A

 

	
   

  

 

$550,000,000

AMENDED
AND RESTATED CREDIT AGREEMENT

Dated
as of

December 23, 2004,

as
Amended and Restated as of July 7, 2006,

among

SCIENTIFIC
GAMES CORPORATION,

as Borrower,

The
Several Lenders

from Time to Time Parties Hereto,

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

	
  

  	
   

  	
   

  

 

J.P. MORGAN SECURITIES INC. and BEAR, STEARNS & CO. INC.,

as
Joint Lead Arrangers and Joint Bookrunners for the Existing Credit Facilities,

BEAR STEARNS CORPORATE LENDING INC.,

as
Syndication Agent for the Existing Credit Facilities,

and

J.P. MORGAN SECURITIES INC.,

as Sole Lead Arranger and Bookrunner

for the Tranche C Term Loans and $50,000,000 Increase

 in Multicurrency Revolving Commitments

 

	
   

  

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section

  	
   

  	
  1.

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
  1.1.

  	
   

  	
  Defined Terms

  	
   

  	
  1

  
	
   

  	
   

  	
  1.2.

  	
   

  	
  Other
  Definitional Provisions

  	
   

  	
  31

  
	
   

  	
   

  	
  1.3.

  	
   

  	
  Currency
  Conversion

  	
   

  	
  32

  
	
  Section

  	
   

  	
  2.

  	
   

  	
  AMOUNT AND TERMS
  OF AND TERM LOANS

  	
   

  	
  32

  
	
   

  	
   

  	
  2.1.

  	
   

  	
  Tranche D Term
  Commitments; Tranche C Term Loans

  	
   

  	
  32

  
	
   

  	
   

  	
  2.2.

  	
   

  	
  Procedure for
  Tranche D Term Loan Borrowing

  	
   

  	
  33

  
	
   

  	
   

  	
  2.3.

  	
   

  	
  Repayment of
  Term Loans

  	
   

  	
  33

  
	
   

  	
   

  	
  2.4.

  	
   

  	
  Incremental Term
  Loans

  	
   

  	
  34

  
	
  Section

  	
   

  	
  3.

  	
   

  	
  AMOUNT AND TERMS
  OF REVOLVING COMMITMENTS

  	
   

  	
  35

  
	
   

  	
   

  	
  3.1.

  	
   

  	
  Revolving
  Commitments

  	
   

  	
  35

  
	
   

  	
   

  	
  3.2.

  	
   

  	
  Procedure for
  Revolving Loan Borrowing

  	
   

  	
  35

  
	
   

  	
   

  	
  3.3.

  	
   

  	
  Swingline
  Commitment

  	
   

  	
  36

  
	
   

  	
   

  	
  3.4.

  	
   

  	
  Procedure for
  Swingline Borrowing; Refunding of Swingline Loans

  	
   

  	
  37

  
	
   

  	
   

  	
  3.5.

  	
   

  	
  Commitment Fees,
  etc

  	
   

  	
  38

  
	
   

  	
   

  	
  3.6.

  	
   

  	
  Termination or
  Reduction of Revolving Commitments

  	
   

  	
  39

  
	
   

  	
   

  	
  3.7.

  	
   

  	
  L/C Commitment

  	
   

  	
  39

  
	
   

  	
   

  	
  3.8.

  	
   

  	
  Procedure for
  Issuance of Letters of Credit

  	
   

  	
  40

  
	
   

  	
   

  	
  3.9.

  	
   

  	
  Fees and Other
  Charges

  	
   

  	
  40

  
	
   

  	
   

  	
  3.10.

  	
   

  	
  L/C
  Participations

  	
   

  	
  40

  
	
   

  	
   

  	
  3.11.

  	
   

  	
  Reimbursement
  Obligation of the Borrower

  	
   

  	
  42

  
	
   

  	
   

  	
  3.12.

  	
   

  	
  Obligations
  Absolute

  	
   

  	
  43

  
	
   

  	
   

  	
  3.13.

  	
   

  	
  Letter of Credit
  Payments

  	
   

  	
  43

  
	
   

  	
   

  	
  3.14.

  	
   

  	
  Applications

  	
   

  	
  44

  
	
  Section

  	
   

  	
  4.

  	
   

  	
  GENERAL
  PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT

  	
   

  	
  44

  
	
   

  	
   

  	
  4.1.

  	
   

  	
  Optional
  Prepayments

  	
   

  	
  44

  
	
   

  	
   

  	
  4.2.

  	
   

  	
  Mandatory
  Prepayments

  	
   

  	
  45

  
	
   

  	
   

  	
  4.3.

  	
   

  	
  Conversion and
  Continuation Options

  	
   

  	
  46

  
	
   

  	
   

  	
  4.4.

  	
   

  	
  Limitations on
  Eurocurrency Tranches

  	
   

  	
  47

  
	
   

  	
   

  	
  4.5.

  	
   

  	
  Interest Rates
  and Payment Dates

  	
   

  	
  47

  
	
   

  	
   

  	
  4.6.

  	
   

  	
  Computation of
  Interest and Fees

  	
   

  	
  48

  
	
   

  	
   

  	
  4.7.

  	
   

  	
  Inability to
  Determine Interest Rate

  	
   

  	
  48

  
	
   

  	
   

  	
  4.8.

  	
   

  	
  Pro Rata
  Treatment and Payments

  	
   

  	
  49

  
	
   

  	
   

  	
  4.9.

  	
   

  	
  Requirements of
  Law

  	
   

  	
  51

  

 

 ii
 

 

	
  

  	
   

  	
  4.10.

  	
   

  	
  Taxes

  	
   

  	
  53

  
	
   

  	
   

  	
  4.11.

  	
   

  	
  Indemnity

  	
   

  	
  55

  
	
   

  	
   

  	
  4.12.

  	
   

  	
  Change of
  Lending Office

  	
   

  	
  56

  
	
   

  	
   

  	
  4.13.

  	
   

  	
  Replacement of
  Lenders

  	
   

  	
  56

  
	
   

  	
   

  	
  4.14.

  	
   

  	
  Evidence of Debt

  	
   

  	
  57

  
	
   

  	
   

  	
  4.15.

  	
   

  	
  Illegality

  	
   

  	
  57

  
	
   

  	
   

  	
  4.16.

  	
   

  	
  Foreign Currency
  Exchange Rate

  	
   

  	
  57

  
	
  Section

  	
   

  	
  5.

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
  58

  
	
   

  	
   

  	
  5.1.

  	
   

  	
  Financial
  Condition

  	
   

  	
  58

  
	
   

  	
   

  	
  5.2.

  	
   

  	
  No Change

  	
   

  	
  59

  
	
   

  	
   

  	
  5.3.

  	
   

  	
  Corporate
  Existence; Compliance with Law

  	
   

  	
  59

  
	
   

  	
   

  	
  5.4.

  	
   

  	
  Power;
  Authorization; Enforceable Obligations

  	
   

  	
  59

  
	
   

  	
   

  	
  5.5.

  	
   

  	
  No Legal Bar

  	
   

  	
  59

  
	
   

  	
   

  	
  5.6.

  	
   

  	
  Litigation

  	
   

  	
  60

  
	
   

  	
   

  	
  5.7.

  	
   

  	
  No Default

  	
   

  	
  60

  
	
   

  	
   

  	
  5.8.

  	
   

  	
  Ownership of
  Property; Liens

  	
   

  	
  60

  
	
   

  	
   

  	
  5.9.

  	
   

  	
  Intellectual
  Property

  	
   

  	
  60

  
	
   

  	
   

  	
  5.10.

  	
   

  	
  Taxes

  	
   

  	
  60

  
	
   

  	
   

  	
  5.11.

  	
   

  	
  Federal
  Regulations

  	
   

  	
  60

  
	
   

  	
   

  	
  5.12.

  	
   

  	
  Labor Matters

  	
   

  	
  61

  
	
   

  	
   

  	
  5.13.

  	
   

  	
  ERISA

  	
   

  	
  61

  
	
   

  	
   

  	
  5.14.

  	
   

  	
  Investment Company
  Act; Public Utility Holding Company Act; Other Regulations

  	
   

  	
  61

  
	
   

  	
   

  	
  5.15.

  	
   

  	
  Subsidiaries

  	
   

  	
  61

  
	
   

  	
   

  	
  5.16.

  	
   

  	
  [Reserved]

  	
   

  	
  61

  
	
   

  	
   

  	
  5.17.

  	
   

  	
  Environmental
  Matters

  	
   

  	
  62

  
	
   

  	
   

  	
  5.18.

  	
   

  	
  Accuracy of
  Information, etc

  	
   

  	
  63

  
	
   

  	
   

  	
  5.19.

  	
   

  	
  Security
  Documents

  	
   

  	
  63

  
	
   

  	
   

  	
  5.20.

  	
   

  	
  Solvency

  	
   

  	
  64

  
	
   

  	
   

  	
  5.21.

  	
   

  	
  Senior
  Indebtedness

  	
   

  	
  64

  
	
   

  	
   

  	
  5.22.

  	
   

  	
  Regulation H

  	
   

  	
  64

  
	
   

  	
   

  	
  5.23.

  	
   

  	
  Material
  Contracts

  	
   

  	
  64

  
	
   

  	
   

  	
  5.24.

  	
   

  	
  Insurance

  	
   

  	
  64

  
	
  Section

  	
   

  	
  6.

  	
   

  	
  CONDITIONS
  PRECEDENT

  	
   

  	
  64

  
	
   

  	
   

  	
  6.1.

  	
   

  	
  Conditions to
  Initial Extension of Credit

  	
   

  	
  64

  
	
   

  	
   

  	
  6.2.

  	
   

  	
  Conditions to
  Each Extension of Credit

  	
   

  	
  65

  
	
  Section

  	
   

  	
  7.

  	
   

  	
  AFFIRMATIVE
  COVENANTS

  	
   

  	
  65

  
	
   

  	
   

  	
  7.1.

  	
   

  	
  Financial
  Statements

  	
   

  	
  65

  
	
   

  	
   

  	
  7.2.

  	
   

  	
  Certificates;
  Other Information

  	
   

  	
  66

  
	
   

  	
   

  	
  7.3.

  	
   

  	
  Payment of
  Obligations

  	
   

  	
  67

  
	
   

  	
   

  	
  7.4.

  	
   

  	
  Maintenance of
  Existence; Compliance

  	
   

  	
  67

  
	
   

  	
   

  	
  7.5.

  	
   

  	
  Maintenance of
  Property; Insurance

  	
   

  	
  67

  

 

 iii
 

 

	
  

  	
   

  	
  7.6.

  	
   

  	
  Inspection of
  Property; Books and Records; Discussions

  	
   

  	
  67

  
	
   

  	
   

  	
  7.7.

  	
   

  	
  Notices

  	
   

  	
  68

  
	
   

  	
   

  	
  7.8.

  	
   

  	
  Environmental
  Laws

  	
   

  	
  68

  
	
   

  	
   

  	
  7.9.

  	
   

  	
  Additional
  Collateral, etc

  	
   

  	
  69

  
	
   

  	
   

  	
  7.10.

  	
   

  	
  Further
  Assurances

  	
   

  	
  71

  
	
   

  	
   

  	
  7.11.

  	
   

  	
  Use of Proceeds

  	
   

  	
  72

  
	
   

  	
   

  	
  7.12.

  	
   

  	
  Hedging
  Arrangements

  	
   

  	
  72

  
	
   

  	
   

  	
  7.13.

  	
   

  	
  Acknowledgement
  and Consent

  	
   

  	
  72

  
	
   

  	
   

  	
  7.14.

  	
   

  	
  Lease Amendment

  	
   

  	
  72

  
	
  Section

  	
   

  	
  8.

  	
   

  	
  NEGATIVE
  COVENANTS

  	
   

  	
  72

  
	
   

  	
   

  	
  8.1.

  	
   

  	
  Financial
  Condition Covenants.

  	
   

  	
  73

  
	
   

  	
   

  	
  8.2.

  	
   

  	
  Indebtedness

  	
   

  	
  73

  
	
   

  	
   

  	
  8.3.

  	
   

  	
  Liens

  	
   

  	
  74

  
	
   

  	
   

  	
  8.4.

  	
   

  	
  Fundamental Changes

  	
   

  	
  77

  
	
   

  	
   

  	
  8.5.

  	
   

  	
  Disposition of
  Property

  	
   

  	
  77

  
	
   

  	
   

  	
  8.6.

  	
   

  	
  Restricted
  Payments

  	
   

  	
  78

  
	
   

  	
   

  	
  8.7.

  	
   

  	
  Payment Blockage
  Notice

  	
   

  	
  79

  
	
   

  	
   

  	
  8.8.

  	
   

  	
  Investments

  	
   

  	
  79

  
	
   

  	
   

  	
  8.9.

  	
   

  	
  Payments and
  Modifications of Certain Debt Instruments

  	
   

  	
  81

  
	
   

  	
   

  	
  8.10.

  	
   

  	
  Transactions
  with Affiliates

  	
   

  	
  82

  
	
   

  	
   

  	
  8.11.

  	
   

  	
  Sales and
  Leasebacks

  	
   

  	
  83

  
	
   

  	
   

  	
  8.12.

  	
   

  	
  Changes in
  Fiscal Periods

  	
   

  	
  83

  
	
   

  	
   

  	
  8.13.

  	
   

  	
  Negative Pledge
  Clauses

  	
   

  	
  83

  
	
   

  	
   

  	
  8.14.

  	
   

  	
  Clauses
  Restricting Subsidiary Distributions

  	
   

  	
  83

  
	
   

  	
   

  	
  8.15.

  	
   

  	
  Lines of
  Business

  	
   

  	
  84

  
	
   

  	
   

  	
  8.16.

  	
   

  	
  Hedge Agreements

  	
   

  	
  84

  
	
  Section

  	
   

  	
  9.

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  84

  
	
  Section

  	
   

  	
  10.

  	
   

  	
  THE AGENTS

  	
   

  	
  87

  
	
   

  	
   

  	
  10.1.

  	
   

  	
  Appointment

  	
   

  	
  87

  
	
   

  	
   

  	
  10.2.

  	
   

  	
  Delegation of
  Duties

  	
   

  	
  88

  
	
   

  	
   

  	
  10.3.

  	
   

  	
  Exculpatory
  Provisions

  	
   

  	
  88

  
	
   

  	
   

  	
  10.4.

  	
   

  	
  Reliance by
  Agents

  	
   

  	
  88

  
	
   

  	
   

  	
  10.5.

  	
   

  	
  Notice of
  Default

  	
   

  	
  89

  
	
   

  	
   

  	
  10.6.

  	
   

  	
  Non-Reliance
  on Agents and Other Lenders

  	
   

  	
  89

  
	
   

  	
   

  	
  10.7.

  	
   

  	
  Indemnification

  	
   

  	
  90

  
	
   

  	
   

  	
  10.8.

  	
   

  	
  Agent in Its
  Individual Capacity

  	
   

  	
  90

  
	
   

  	
   

  	
  10.9.

  	
   

  	
  Successor
  Administrative Agent

  	
   

  	
  90

  
	
   

  	
   

  	
  10.10.

  	
   

  	
  Agents Generally

  	
   

  	
  91

  
	
   

  	
   

  	
  10.11.

  	
   

  	
  Lead Arrangers
  and Syndication Agent

  	
   

  	
  91

  
	
  Section

  	
   

  	
  11.

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  91

  
	
   

  	
   

  	
  11.1.

  	
   

  	
  Amendments and
  Waivers

  	
   

  	
  91

  

 

 iv
 

 

	
  

  	
   

  	
  11.2.

  	
   

  	
  Notices

  	
   

  	
  93

  
	
   

  	
   

  	
  11.3.

  	
   

  	
  No Waiver;
  Cumulative Remedies

  	
   

  	
  94

  
	
   

  	
   

  	
  11.4.

  	
   

  	
  Survival

  	
   

  	
  95

  
	
   

  	
   

  	
  11.5.

  	
   

  	
  Payment of
  Expenses and Taxes

  	
   

  	
  95

  
	
   

  	
   

  	
  11.6.

  	
   

  	
  Successors and
  Assigns

  	
   

  	
  96

  
	
   

  	
   

  	
  11.7.

  	
   

  	
  Adjustments; Set-off

  	
   

  	
  100

  
	
   

  	
   

  	
  11.8.

  	
   

  	
  Counterparts

  	
   

  	
  101

  
	
   

  	
   

  	
  11.9.

  	
   

  	
  Severability

  	
   

  	
  101

  
	
   

  	
   

  	
  11.10.

  	
   

  	
  Integration

  	
   

  	
  101

  
	
   

  	
   

  	
  11.11.

  	
   

  	
  GOVERNING LAW

  	
   

  	
  101

  
	
   

  	
   

  	
  11.12.

  	
   

  	
  Submission To
  Jurisdiction; Waivers

  	
   

  	
  101

  
	
   

  	
   

  	
  11.13.

  	
   

  	
  Acknowledgments

  	
   

  	
  102

  
	
   

  	
   

  	
  11.14.

  	
   

  	
  Releases of
  Guarantees and Liens

  	
   

  	
  102

  
	
   

  	
   

  	
  11.15.

  	
   

  	
  Confidentiality

  	
   

  	
  103

  
	
   

  	
   

  	
  11.16.

  	
   

  	
  WAIVERS OF JURY
  TRIAL

  	
   

  	
  103

  
	
   

  	
   

  	
  11.17.

  	
   

  	
  [Reserved]

  	
   

  	
  103

  
	
   

  	
   

  	
  11.18.

  	
   

  	
  Conversion of
  Currencies

  	
   

  	
  103

  
	
   

  	
   

  	
  11.19.

  	
   

  	
  Interest Rate
  Limitation

  	
   

  	
  104

  

 

ANNEXES:

A             Pricing Grid

SCHEDULES:

	
  1.1(a)

  	
   

  	
  Mortgaged Property

  
	
  1.1(b)

  	
   

  	
  Specified Hedge Agreements

  
	
  1.1(c)

  	
   

  	
  Transfer Transactions

  
	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Commitments

  
	
  2.1A

  	
   

  	
  Tranche C Term Commitments

  
	
  2.1B

  	
   

  	
  Incremental Multicurrency Revolving Commitments

  
	
  2.1C

  	
   

  	
  Pro Forma Multicurrency Revolving Commitments

  
	
  2.1D

  	
   

  	
  Tranche D Term Commitments

  
	
  3.7

  	
   

  	
  Existing Letters of Credit

  
	
  5.4

  	
   

  	
  Consents, Authorization, Filings and Notices

  
	
  5.6

  	
   

  	
  Litigation

  
	
  5.15(a)

  	
   

  	
  Subsidiaries

  
	
  5.15(b)

  	
   

  	
  Outstanding Equity Commitments

  
	
  5.19(a)

  	
   

  	
  UCC Filing Jurisdictions

  
	
  5.19(b)

  	
   

  	
  Mortgage Filing Jurisdictions

  
	
  5.22

  	
   

  	
  Regulation H

  
	
  5.23

  	
   

  	
  Material Contracts

  
	
  5.24

  	
   

  	
  Insurance

  
	
  8.2(d)

  	
   

  	
  Existing Indebtedness

  
	
  8.3(l)

  	
   

  	
  Existing Liens

  
	
  8.5

  	
   

  	
  2006 JV Contribution

  

 v
 

 

	
  8.8(f)

  	
   

  	
  Existing Investments

  
	
  8.13(c)

  	
   

  	
  Specified Contracts — Negative Pledge

  
	
  8.13(d)

  	
   

  	
  Specified Contracts — Prohibition of Assignment

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  
	
  A

  	
   

  	
  Form of Guarantee and Collateral Agreement

  
	
  B

  	
   

  	
  Form of Compliance Certificate

  
	
  C

  	
   

  	
  Form of Closing Certificate

  
	
  D

  	
   

  	
  Form of Mortgage

  
	
  E

  	
   

  	
  Form of Assignment and Assumption

  
	
  F-1

  	
   

  	
  Form of Legal Opinion of Kramer Levin
  Naftalis & Frankel LLP

  
	
  F-2

  	
   

  	
  Form of Legal Opinion of Martin E. Schloss

  
	
  G

  	
   

  	
  Form of Exemption Certificate

  

 

 vi

AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December 23,
2004, as amended and restated as of July 7, 2006, among SCIENTIFIC GAMES CORPORATION, a
Delaware corporation, the several banks and other financial institutions or
entities from time to time parties to this Agreement, and JPMORGAN CHASE BANK,
N.A., as administrative agent.

WHEREAS, the Borrower, certain lenders party thereto
and the Administrative Agent are parties to the Credit Agreement dated as of December 23,
2004 (as amended and in effect immediately prior to the First Restatement
Effective Date (as defined herein), the “2004 Credit Agreement”), as
amended and restated pursuant to the Amendment and Restatement Agreement dated
as of March 31, 2006 (the “First Amendment and Restatement Agreement”),
as amended (as in effect immediately prior to the Restatement Effective Date
(as defined herein), the “Existing Credit Agreement”);

WHEREAS, the Borrower and the Administrative Agent are
parties to an Amendment and Restatement Agreement with the Restatement Lenders
(as defined therein) dated as of July 7, 2006 (the “Amendment and
Restatement Agreement”); and

WHEREAS, subject to the satisfaction of the conditions
set forth in the Amendment and Restatement Agreement, the Existing Credit
Agreement shall be amended and restated as provided herein.

NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1.  DEFINITIONS

1.1.          Defined
Terms. As used in this Agreement, the terms listed in this Section 1.1
shall have the respective meanings set forth in this Section 1.1.

“Adjustment Date”:  as defined in the Pricing Grid.

“Administrative Agent”:  JPMorgan Chase Bank, N.A., in its capacity as
administrative agent for the Lenders hereunder.

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

“Affected Foreign Currency”:  as defined in Section 4.7(c).

“Affiliate”: 
as to any Person, any other Person that, directly or indirectly, is in
control of, is controlled by, or is under common control with, such Person. For
purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling”, “controlled by” and “under common control with”), as
applied to any Person, means the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of that Person,
whether through the ownership of voting securities or by contract or otherwise.

 

 

“Agents”: 
the collective reference to the Syndication Agent and the Administrative
Agent, which term shall include, for purposes of Section 10 only, the
Issuing Lender.

“Aggregate Exposure”:  with respect to any Lender at any time, the
sum of (a) the aggregate then unpaid principal amount of such Lender’s
Term Loans, (b) the amount of such Lender’s Revolving Commitments then in
effect and (c) if the Revolving Commitments of a Class have been
terminated, the amount of such Lender’s Revolving Extensions of Credit of such Class then
outstanding.

“Aggregate Exposure Percentage”:  with respect to any Lender at any time, the
ratio (expressed as a percentage) of such Lender’s Aggregate Exposure at such
time to the Aggregate Exposure of all Lenders at such time.

“Agreement”: 
this Credit Agreement.

“Agreement Currency”:  as defined in Section 11.18(b).

“Amendment and 
Restatement Agreement”:  as
defined in the recitals hereto.

“Applicable Creditor”:  as defined in Section 11.18(b).

“Applicable Margin”:  with respect to any Loan, a rate per annum
equal to the rate determined pursuant to the Pricing Grid.

“Application”: 
an application, in such form as an Issuing Lender may specify from time
to time, requesting such Issuing Lender to open a Letter of Credit.

“Approved Fund”:  with respect to any Lender that is a fund
that invests in commercial loans, any other fund that invests in commercial
loans and is managed or advised by the same investment advisor as such Lender
or by an Affiliate of such investment advisor.

“Asset Sale”: 
any Disposition of Property or series of related Dispositions of
Property (excluding any such Disposition permitted by clause (a), (b), (c) or
(d) of Section 8.5) that yields Net Cash Proceeds to any Group Member
(valued at the initial principal amount thereof in the case of non-cash
proceeds consisting of notes or other debt securities and valued at fair market
value in the case of other non-cash proceeds) in excess of $5,000,000.

“Assignee”: 
as defined in Section 11.6.

“Assignment and Assumption”:  an Assignment and Assumption, substantially
in the form of Exhibit E.

“Available Revolving Commitment”:  as to any Revolving Lender under either
Revolving Facility at any time, an amount equal to the excess, if any, of (a) such
Lender’s Revolving Commitment under such Revolving Facility then in effect over
(b) such Lender’s Revolving Extensions of Credit under such Revolving
Facility then outstanding; provided that, in 

 2
 

 

 

calculating any Dollar
Revolving Lender’s Revolving Extensions of Credit under the Dollar Revolving
Facility for the purpose of determining such Lender’s Available Revolving
Commitment under the Dollar Revolving Facility pursuant to Section 3.5,
the aggregate principal amount of Swingline Loans then outstanding shall be
deemed to be zero.

“Base Rate”: 
for any day, a rate per annum (rounded upwards, if necessary, to the next
1/16 of 1%) equal to the greater of (a) the Prime Rate in effect on such
day and (b) the Federal Funds Effective Rate in effect on such day plus
0.50%. For purposes hereof, “Prime Rate” shall mean the rate of interest
per annum publicly announced from time to time by the Reference Lender as its
prime rate in effect at its principal office in New York City. Any change in
the Base Rate due to a change in the Prime Rate or the Federal Funds Effective
Rate shall be effective as of the opening of business on the effective day of
such change in the Prime Rate or the Federal Funds Effective Rate,
respectively.

“Base Rate Loans”:  Loans the rate of interest applicable to
which is based upon the Base Rate.

“Benefitted Lender”:  as defined in Section 11.7(a).

“Board”: 
the Board of Governors of the Federal Reserve System of the United
States (or any successor).

“Borrower”: 
Scientific Games Corporation, a Delaware corporation.

“Borrowing Date”:  any Business Day specified by the Borrower as
a date on which the Borrower requests the relevant Lenders to make Loans
hereunder.

“Business”: 
as defined in Section 5.17(b).

“Business Day”: 
a day other than a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required by law to close; provided
that (a) when used in connection with a Eurocurrency Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in
deposits in the applicable currency in the London interbank market, (b) when
used in connection with a Multicurrency Revolving Loan denominated in a Foreign
Currency, the term “Business Day” shall also exclude any day on which banks in (i) the
jurisdiction of the account to which the proceeds of such Loan are to be
disbursed and (ii) the jurisdiction in which payments of principal of and
interest on such Loan are to made are authorized or required by law to close and (c) when used in connection with any
Loan denominated in Euro, the term “Business Day” shall also exclude any day on
which the Trans-European Automated Real-Time Gross Settlement Express Transfer
System (TARGET) (or, if such clearing system ceases to be operative, such other
clearing system (if any) determined by the Administrative Agent to be a
suitable replacement) is not open for settlement of payment in Euro.

“Calculation Date”:  with respect to each Foreign Currency, the
fifteenth and last day of each calendar month (or, if such day is not a
Business Day, the next succeeding Business 

 3
 

 

 

Day), provided
that the second Business Day preceding each Borrowing Date with respect to any
Multicurrency Revolving Loans denominated in a Foreign Currency shall also be a
“Calculation Date” with respect to such Foreign Currency.

“Capital Expenditures”:  for any period, with respect to any Person,
the aggregate of all expenditures by such Person and its Subsidiaries for (a) the
acquisition or leasing (pursuant to a capital lease) of fixed or capital assets
or additions to equipment (including replacements, capitalized repairs and
improvements during such period) that should be capitalized under GAAP on a
consolidated balance sheet of such Person and its Subsidiaries, (b) the
purchase or development of computer software or systems to the extent such
expenditures are capitalized on the consolidated balance sheet of the Borrower
and its Subsidiaries in conformity with GAAP and (c) deferred installation
costs; provided that Capital Expenditures shall not include expenditures
recorded as consideration paid in connection with acquisitions permitted by Section 8.8(k) or
any other related expenditure made substantially contemporaneously therewith.

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

“Capital Stock”:  any and all shares, interests, participations
or other equivalents (however designated) of capital stock of a corporation,
any and all equivalent ownership interests in a Person (other than a
corporation) and any and all warrants, rights or options to purchase any of the
foregoing.

“Cash Collateral Account”:  as defined in Section 4.2(e).

“Cash Equivalents”:  (a) marketable direct obligations issued
by, or unconditionally guaranteed by, the United States government or issued by
any agency thereof and backed by the full faith and credit of the United
States, in each case maturing within one year from the date of acquisition; (b) certificates
of deposit, time deposits, eurodollar time deposits or overnight bank deposits
having maturities of six months or less from the date of acquisition issued by
any Lender or by any commercial bank organized under the laws of the United
States or any state thereof having combined capital and surplus of not less
than $500,000,000; (c) commercial paper of an issuer rated at least A-1
by Standard & Poor’s Ratings Services (“S&P”) or P-1
by Moody’s Investors Service, Inc. (“Moody’s”), or carrying an
equivalent rating by a nationally recognized rating agency, if both of the two
named rating agencies cease publishing ratings of commercial paper issuers
generally, and maturing within six months from the date of acquisition; (d) repurchase
obligations of any Lender or of any commercial bank satisfying the requirements
of clause (b) of this definition, having a term of not more than
30 days, with respect to securities issued or fully guaranteed or insured
by the United States government; (e) securities with maturities of one
year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or
by any 

 4
 

 

 

foreign government, the
securities of which state, commonwealth, territory, political subdivision,
taxing authority or foreign government (as the case may be) are rated at least
A by S&P or A by Moody’s; (f) securities with maturities of six months
or less from the date of acquisition backed by standby letters of credit issued
by any Lender or any commercial bank satisfying the requirements of
clause (b) of this definition; (g) shares of Dollar denominated
money market mutual or similar funds which invest exclusively in assets
satisfying the requirements of clauses (a) through (f) of this
definition or money market funds that (i) comply with the criteria set
forth in Securities and Exchange Conversion Rule 2a-7 under the
Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by
Moody’s and (iii) have portfolio assets of at least $5,000,000,000; or (h) in
the case of Subsidiaries doing business outside of the United States,
substantially similar investments to those set forth in clauses (a) through
(g) above denominated in foreign currencies; provided that
references to the United States shall be deemed to mean foreign countries
having a sovereign rating of A or better from either S&P or Moody’s.

“Charges”: 
as defined in Section 11.19.

“Class”: 
(a) when used in reference to any Loan or borrowing, refers to
whether such Loan, or the Loans constituting such borrowing, are Dollar
Revolving Loans, Multicurrency Revolving Loans, Tranche C Term Loans,
Tranche D Term Loans or Swingline Loans, (b) when used in reference
to any Commitment, refers to whether such Commitment is a Dollar Revolving
Commitment, Multicurrency Revolving Commitment, Tranche C Term Commitment or
Tranche D Term Commitment and (c) when used in reference to any
Lender refers to whether such Lender is a Dollar Revolving Lender,
Multicurrency Revolving Lender, Tranche C Term Lender or Tranche D Term
Lender.

“Code”: 
the Internal Revenue Code of 1986, as amended from time to time.

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

“Commitment”: 
a Tranche C Term Commitment, a Tranche D Term Commitment or a
Revolving Commitment.

“Commitment Fee Rate”:  0.50% per annum.

“Commonly Controlled Entity”:  an entity, whether or not incorporated, that
is under common control with the Borrower within the meaning of Section 4001
of ERISA or is part of a group that includes the Borrower and that is treated
as a single employer under Section 414 of the Code.

“Compliance Certificate”:  a certificate duly executed by a Responsible
Officer substantially in the form of Exhibit B.

“Conduit Lender”:  any special purpose entity organized and
administered by any Lender for the purpose of making Loans otherwise required to
be made by such Lender and designated by such Lender in a written instrument,
subject to the consent of the Administrative 

 5
 

 

 

Agent and the Borrower
(which consent shall not be unreasonably withheld); provided, that the
designation by any Lender of a Conduit Lender shall not relieve the designating
Lender of any of its obligations to fund a Loan under this Agreement if, for
any reason, its Conduit Lender fails to fund any such Loan, and the designating
Lender (and not the Conduit Lender) shall have the sole right and
responsibility to deliver all consents and waivers required or requested under
this Agreement with respect to its Conduit Lender, and provided, further,
that no Conduit Lender shall (a) be entitled to receive any greater amount
pursuant to Section 4.9, 4.10, 4.11 or 11.5 than the designating Lender
would have been entitled to receive in respect of the extensions of credit made
by such Conduit Lender or (b) be deemed to have any Commitment.

“Confidential Information Memorandum”:  the Confidential Information Memorandum dated
December 2004 and furnished to the Lenders.

“Consolidated EBITDA”:  for any period, Consolidated Net Income for
such period plus, without duplication and to the extent reflected as a
charge in the statement of such Consolidated Net Income for such period, the
sum of (a) income tax expense, (b) interest expense, amortization or
write-off of debt discount and debt issuance costs and commissions, discounts
and other fees and charges associated with Indebtedness (including the Loans), (c) depreciation
and amortization expense, (d) amortization of intangibles (including, but
not limited to, goodwill) and organization costs, (e) the earnout payments
with respect to the Global Draw Acquisition, (f) in the case of the fiscal
quarters ended December 31, 2005 and March 31, 2006, the non-cash
expense to discontinue the Supplemental Executive Retirement Plan in amounts
not exceeding $12,400,000 and $314,000, respectively, (g) any
extraordinary charges or losses determined in accordance with GAAP, (h) non-cash
stock-based compensation expenses and (i) in the case of the fiscal
quarter ended March 31, 2006, acquisition-related or unusual expenses
incurred by Global Draw, Ltd in an aggregate amount not exceeding the Dollar
Equivalent of British Pounds Sterling 4,000,000 and minus, to the extent
included in the statement of such Consolidated Net Income for such period, the
sum of (a) interest income and (b) any extraordinary income or gains
determined in accordance with GAAP. For the purposes of calculating
Consolidated EBITDA for any period of four consecutive fiscal quarters (each, a
“Reference Period”) pursuant to any determination of the Consolidated
Leverage Ratio and the Consolidated Senior Debt Ratio, (i) if at any time
during such Reference Period the Borrower or any Subsidiary shall have made any
Material Disposition, the Consolidated EBITDA for such Reference Period shall
be reduced by an amount equal to the Consolidated EBITDA (if positive)
attributable to the property that is the subject of such Material Disposition
for such Reference Period or increased by an amount equal to the Consolidated
EBITDA (if negative) attributable thereto for such Reference Period and (ii) if
during such Reference Period the Borrower or any Subsidiary shall have made a
Material Acquisition, Consolidated EBITDA for such Reference Period shall be
calculated after giving pro forma effect thereto as if such Material
Acquisition occurred on the first day of such Reference Period; provided
that in the case of the EssNet Acquisition and the Racing Venue Acquisition, in
lieu of the foregoing adjustment in clause (ii) such acquisitions
shall be deemed to have increased Consolidated EBITDA by $2,200,000 (in the
case of the EssNet Acquisition) or $300,000 (in the case of the Racing Venue
Acquisition) for each fiscal quarter included in any such Reference Period
referred to in clause (ii).

 6
 

 

 

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

“Consolidated Interest Expense”:  for any period, total cash interest expense
(including that attributable to Capital Lease Obligations) of the Borrower and
its Subsidiaries for such period with respect to all outstanding Indebtedness
of the Borrower and its Subsidiaries (including all commissions, discounts and
other fees and charges owed with respect to letters of credit and bankers’
acceptance financing and net costs under Hedge Agreements in respect of
interest rates to the extent such net costs are allocable to such period in
accordance with GAAP and excluding (a) any fees paid in connection with
the EssNet Acquisition and the 2006 Acquisitions and (b) fees and expenses
incurred in connection with the negotiation, preparation and execution of the
Amendment and Restatement Agreement and this Agreement to the extent such fees
are not capitalized and are treated as interest expense in accordance with
GAAP).

“Consolidated Leverage Ratio”:  as of the last day of any period, the ratio
of (a) Consolidated Total Debt on such day to (b) Consolidated EBITDA
for the period of four consecutive fiscal quarters then ended.

“Consolidated Net Income”:  for any period, the consolidated net income
(or loss) of the Borrower and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP, provided that there shall be excluded (a) the
income (or deficit) of any Person accrued prior to the date it becomes a
Subsidiary of the Borrower or is merged into or consolidated with the Borrower
or any of its Subsidiaries, (b) the income (or deficit) of any Person
(other than a Subsidiary of the Borrower) in which the Borrower or any of its
Subsidiaries has an ownership interest, except to the extent that any such
income is actually received by the Borrower or such Subsidiary in the form of
dividends or similar distributions and (c) the undistributed earnings of
any Subsidiary of the Borrower to the extent that the declaration or payment of
dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any Contractual Obligation (other than under any Loan
Document) or Requirement of Law applicable to such Subsidiary.

“Consolidated Senior Debt”:  all Consolidated Total Debt other than the
Senior Subordinated Securities.

“Consolidated Senior Debt Ratio”:  as of the last day of any period, the ratio
of (a) Consolidated Senior Debt on such day to (b) Consolidated
EBITDA for the period of four consecutive fiscal quarters then ended.

“Consolidated Total Debt”:  at any date, the aggregate principal amount
of all Indebtedness of the Borrower and its Subsidiaries at such date,
determined on a consolidated basis and required to be reflected on the Borrower’s
balance sheet in accordance with GAAP.

“Continuing Directors”:  the directors of the Borrower on the
Effective Date and each other director, if, in each case, such other director’s
nomination for election to the board of directors of the Borrower is
recommended by a majority of the then Continuing Directors.

 7
 

 

 

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

“Conversion Date”:  any date on which either (a) an Event of
Default under Section 9(f) has occurred or (b) the Commitments
shall have been terminated prior to the Revolving Termination Date and/or the
Loans shall have been declared immediately due and payable, in either case
pursuant to Section 9.

 “Convertible
Debentures Options Transactions”: 
collectively, the transactions in connection with the issuance of the
Convertible Senior Subordinated Debentures contemplated by (i) the letter
agreements dated as of December 1, 2004, between the Borrower and each of
J.P. Morgan Securities Inc., as agent for JPMorgan Chase Bank, N.A., London
Branch, and Bear, Stearns International Limited; (ii) the ISDA
confirmations to be entered into on or about the Effective Date between the
Borrower and each of J.P. Morgan Securities Inc., as agent for JPMorgan Chase
Bank, N.A., London Branch, and Bear, Stearns International Limited and the
related deemed 2002 ISDA Master Agreements as referred to therein; (iii) any
arrangements substantially the same as those referred to above that are entered
into in connection with the exercise of the underwriters’ “green shoe” option
in respect of the offering of the Convertible Senior Subordinated Debentures;
and (iv) any other documents relating to the matters referenced in clauses
(i), (ii) or (iii) above.

“Convertible Senior Subordinated Debentures”:  the unsecured Convertible Senior Subordinated
Debentures due 2024 of the Borrower to be issued on or about the Effective Date
in an aggregate principal amount of $250,000,000 plus any amounts issued in
connection with the exercise of any “green shoe” option granted to the
underwriters thereof in connection with the initial issuance.

“Default”: 
any of the events specified in Section 9, whether or not any
requirement for the giving of notice, the lapse of time, or both, has been
satisfied.

“Disposition”: 
with respect to any Property, any sale, lease, sale and leaseback,
assignment, conveyance, transfer or other disposition thereof. The terms “Dispose”
and “Disposed of” shall have correlative meanings.

“Dollar Equivalent”:  at any time as to any amount denominated in a
Foreign Currency, the equivalent amount in Dollars as determined by the
Administrative Agent at such time on the basis of the Exchange Rate for the
purchase of Dollars with such Foreign Currency on the most recent Calculation
Date for such Foreign Currency.

“Dollar L/C Obligations”:  at any time, an amount equal to the sum of (a) the
aggregate then undrawn and unexpired amount of the then outstanding Dollar
Letters of Credit and (b) the aggregate amount of drawings under Dollar
Letters of Credit that have not then been reimbursed pursuant to Section 3.11.

“Dollar Letters of Credit”:  as defined in Section 3.7(a).

 8
 

 

 

“Dollar Revolving Commitment”:  as to any Lender, the obligation of such
Lender, if any, to make Dollar Revolving Loans and participate in Swingline
Loans and Dollar Letters of Credit in an aggregate principal and/or face amount
not to exceed the amount set forth under the heading “Dollar Revolving Commitment”
with respect to such Lender on Schedule 2.1 or in the Assignment and
Assumption pursuant to which such Lender became a party to this Agreement, as
the same may be changed from time to time pursuant to the terms hereof. The
original aggregate amount of the Dollar Revolving Commitments is $200,000,000.

“Dollar Revolving Extensions of Credit”:  as to any Dollar Revolving Lender at any
time, an amount equal to the sum of (a) the aggregate principal amount of
Dollar Revolving Loans held by such Lender then outstanding, (b) such
Lender’s Dollar Revolving Percentage of the Dollar L/C Obligations then
outstanding and (c) such Lender’s Dollar Revolving Percentage of the
aggregate principal amount of Swingline Loans then outstanding.

“Dollar Revolving Facility”:  the credit facility represented by the Dollar
Revolving Commitments and Dollar Revolving Extensions of Credit.

“Dollar Revolving Lender”:  each Lender that has a Dollar Revolving
Commitment or any Dollar Revolving Extensions of Credit.

“Dollar Revolving Loans”:  as defined in Section 3.1(a).

“Dollar Revolving Percentage”:  as to any Dollar Revolving Lender at any
time, the percentage which such Lender’s Dollar Revolving Commitment then
constitutes of the Total Dollar Revolving Commitments (or, at any time after
the Dollar Revolving Commitments shall have expired or terminated, the
percentage which such Lender’s Dollar Revolving Extensions of Credit then
outstanding constitutes of the Total Dollar Revolving Extensions of Credit then
outstanding of all Dollar Revolving Lenders).

“Dollars” and “$”:  dollars in lawful currency of the United
States.

“Domestic Subsidiary”:  any Subsidiary of the Borrower organized
under the laws of any jurisdiction within the United States; provided
that any such Subsidiary that is directly owned by a Foreign Subsidiary shall
be deemed not to be a “Domestic Subsidiary” (and thus shall be deemed to be a
Foreign Subsidiary) if and for so long as, in the Borrower’s reasonable
judgment, there would be any adverse tax consequences to, or otherwise
financially disadvantageous for, the Borrower and its Subsidiaries if such
Subsidiary were to be treated as a “Domestic Subsidiary” under the Loan
Documents.

“Effective Date”:  December 23, 2004, the date on which the
conditions specified in Section 6.1 of the 2004 Credit Agreement were
satisfied.

“Environmental Laws”:  any and all laws, rules, orders, regulations,
statutes, ordinances, codes, decrees, binding agreement, judgments, or
requirements of any Governmental Authority or other Requirements of Law
(including common law) regulating, relating to, or 

 9
 

 

 

imposing liability or
standards of conduct concerning pollution or protection of human health or the
environment, as have been, are now, or may at any time hereafter be in effect.

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

“EssNet Acquisition”:  the purchase by the Borrower of the lottery
business of EssNet AB on March 22, 2006 pursuant to an Asset Purchase
Agreement dated as of January 20, 2006.

“Eurocurrency Base Rate”:  with respect to each day during each Interest
Period pertaining to a Eurocurrency Loan, the rate per annum determined on the
basis of the rate for deposits in Dollars (or, in the case of a Eurocurrency
Loan that is a Multicurrency Revolving Loan denominated in a Foreign Currency,
the applicable Foreign Currency) for a period equal to such Interest Period
commencing on the first day of such Interest Period appearing on Page 3750
(or on the Page for the applicable Foreign Currency) of the Telerate
screen as of 11:00 A.M., London time, two Business Days prior to the
beginning of such Interest Period (or, in the case of Eurocurrency Loans
denominated in British Pounds Sterling, the relevant Page of the Telerate
screen as of 11:00 A.M., London time, on the first day of such Interest
Period). In the event that such rate does not appear on Page 3750 (or on
the Page for the applicable Foreign Currency) of the Telerate screen (or
otherwise on such screen), the “Eurocurrency Base Rate” shall be determined by
reference to such other comparable publicly available service for displaying
Eurocurrency rates as may be selected by the Administrative Agent or, in the
absence of such availability, by reference to the rate at which the Administrative
Agent is offered Dollar deposits (or, in the case of a Eurocurrency Loan that
is a Multicurrency Revolving Loan denominated in a Foreign Currency, deposits
in the applicable Foreign Currency) at or about 11:00 A.M., local time,
two Business Days prior to the beginning of such Interest Period in the
interbank eurocurrency market where its eurocurrency and foreign currency and
exchange operations are then being conducted for delivery on the first day of
such Interest Period for the number of days comprised therein.

“Eurocurrency Loans”:  Loans the rate of interest applicable to
which is based upon the Eurocurrency Rate.

“Eurocurrency Rate”:  with respect to each day during each Interest
Period pertaining to a Eurocurrency Loan, a rate per annum determined for such
day in accordance with the following formula (rounded upward to the nearest
1/100th of 1%):

	
  Eurocurrency Base Rate

  
	
  1.00 – Eurocurrency Reserve Requirements

  

 

“Eurocurrency Reserve Requirements”:  for any day as applied to a Eurocurrency
Loan, the aggregate (without duplication) of the maximum rates (expressed as a
decimal fraction) of reserve requirements in effect on such day (including any
special, supplemental, marginal or emergency reserves) under any regulations of
the Board or other Governmental Authority having jurisdiction with respect
thereto dealing with reserve requirements prescribed 

 10
 

 

 

for eurocurrency funding
(currently referred to as “Eurocurrency liabilities” in Regulation D of
the Board) maintained by a member bank of the Federal Reserve System. Such
reserve requirements shall include those imposed pursuant to Regulation D.
Eurocurrency Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under such Regulation D or any comparable regulation. The Eurocurrency
Reserve Requirements shall be adjusted automatically on and as of the effective
date of any change in any reserve requirement.

“Eurocurrency Tranche”:  with respect to any Facility, the collective
reference to Eurocurrency Loans in the same currency under such Facility the
then current Interest Periods with respect to all of which begin on the same
date and end on the same later date (whether or not such Loans shall originally
have been made on the same day).

“Event of Default”:  any of the events specified in Section 9,
provided that any requirement for the giving of notice, the lapse of
time, or both, has been satisfied.

 “Exchange
Rate”:  on any day, with respect to
any currency (the “specified currency”), the rate at which such
specified currency may be exchanged into any other relevant currency (the “exchange
currency”), as set forth at approximately 11:00 A.M., London time, on
such date on the Reuters World Currency Page for such currency. In the
event that such rate does not appear on any Reuters World Currency Page, the
Exchange Rate shall be determined by reference to such other publicly available
service for displaying exchange rates as may be agreed upon by the
Administrative Agent and the Borrower, or, in the absence of such agreement,
such Exchange Rate shall instead be the arithmetic average of the spot rates of
exchange of the Administrative Agent in the market where its foreign currency
exchange operations in respect of such specified currency are then being
conducted, at or about 10:00 A.M., local time, on such date for the
purchase of such exchange currency with the relevant specified currency for
delivery two Business Days later; provided that if at the time of any
such determination, for any reason, no such spot rate is being quoted, the
Administrative Agent, after consultation with the Borrower, may use any
reasonable method it deems appropriate to determine such rate, and such
determination shall be presumed correct absent manifest error.

“Excluded Indebtedness”:  all Indebtedness permitted by
clauses (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k),  (l) and (m) of Section 8.2.

“Existing Credit Agreement”:  as defined in the recitals hereto.

“Existing Letters of Credit”:  the letters of credit listed on
Schedule 3.7 that are outstanding on the Effective Date.

“Existing Subordinated Notes”:  the unsecured Senior Subordinated Notes due
2010 of the Borrower issued on August 14, 2000 pursuant to the indenture
dated as of August 14, 2000, as amended and supplemented.

 11
 

 

 

“Expenditure Use Amounts”:  at any date, the amount equal to the sum of
all amounts utilized by the Borrower and its Subsidiaries on and after the
Effective Date to make Restricted Payments or to pay, prepay, repurchase or
redeem or otherwise optionally or voluntarily defease or segregate funds with
respect to Senior Subordinated Securities, in each case in reliance on the
Permitted Expenditure Amount.

“Facility”: 
each of (a) the Tranche C Term Commitments and the Tranche C Term
Loans made thereunder (the “Tranche C Term Facility”), (b) the
Tranche D Term Commitments and the Tranche D Term Loans made
thereunder (the “Tranche D Term Facility”), (c) the Dollar
Revolving Facility and (d) the Multicurrency Revolving Facility.

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

“Fee Payment Date”:  the last day of each March, June, September and
December and the last day of the Revolving Commitment Period (or, in
respect of either Class of Revolving Commitments, on such earlier date as
the Revolving Commitments of such Class shall terminate as provided
herein).

“First Amendment and Restatement Agreement”:  as defined in the recitals hereto.

“First Restatement Effective Date”:  April 3, 2006, the date on which the
conditions specified in Section 6 of the First Amendment and Restatement
Agreement were satisfied.

 “Foreign
Currency”:  (a) with respect to
any Multicurrency Revolving Loan or Multicurrency Revolving Letter of Credit,
each of British Pounds Sterling, Euro and any other currency approved by the
Multicurrency Revolving Lenders or the relevant Issuing Lender, as applicable,
and the Administrative Agent, provided that the Eurocurrency Base Rate
applicable to Multicurrency Revolving Loans denominated in a Foreign Currency
approved after the Effective Date may be amended as agreed by the Multicurrency
Revolving Lenders, the Administrative Agent and the Borrower and (b) solely
with respect to any Multicurrency Revolving Letter of Credit issued by JPMorgan
Chase Bank, N.A., each of British Pounds Sterling, Euro and Canadian Dollars,
and, to the extent available, Chilean Pesos, Swiss Francs, New Israeli Shekels,
Turkish Liras and Indian Rupees.

“Foreign Currency Equivalent”:  at any time as to any amount denominated in
Dollars, the equivalent amount in the relevant Foreign Currency or Currencies
as determined by the Administrative Agent at such time on the basis of the
Exchange Rate for the purchase of such Foreign Currency or Currencies with
Dollars on the date of determination thereof.

“Foreign Holdco”:  as defined in Section 8.8(j).

 

 12

 

“Foreign Holdco Subsidiary”:  as defined in Section 8.8(j).

“Foreign Subsidiary”:  any Subsidiary of the Borrower that is not a
Domestic Subsidiary.

“Funding Office”:  the office of the Administrative Agent
specified in Section 11.2, or such other office as may be specified from
time to time by the Administrative Agent as its funding office by written
notice to the Borrower and the Lenders.

“GAAP”: 
generally accepted accounting principles in the United States as in
effect from time to time. In the event that any Accounting Change (as defined
below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then,
at any time, the Borrower (by notice to the Administrative Agent) may, or the
Administrative Agent, the Syndication Agent or the Required Lenders (in each
case, by notice to the Borrower) may, elect to require negotiations in order to
amend such provisions of this Agreement so as to equitably reflect such
Accounting Changes with the desired result that the criteria for evaluating the
Borrower’s financial condition shall be the same after such Accounting Changes
as if such Accounting Changes had not been made. In the event of any such
election, then, until such time as such an amendment shall have been executed
and delivered by the Borrower, Administrative Agent and the Required Lenders
(or the electing party has rescinded its election), all financial covenants,
standards and terms in this Agreement shall continue to be calculated or
construed as if such Accounting Changes had not occurred. “Accounting
Changes” refers to (a) changes in accounting principles required by
the promulgation of any rule, regulation, pronouncement or opinion by the
Financial Accounting Standards Board, the Emerging Issues Task Force or, if
applicable, the SEC or (b) changes in the application of GAAP from the
application used in preparation of the Borrower’s audited financial statements
for its fiscal year ended December 31, 2005.

“Gaming Approval”:  any and all approvals, authorizations,
consents, rulings, orders or directives of any Governmental Authority (i) necessary,
as of the Effective Date, to enable the Group Members to engage in the lottery,
gambling, horse racing or gaming business or otherwise continue to conduct its
business as it is conducted on the Effective Date, (ii) that regulates
gaming in any jurisdiction in which the Group Members conduct gaming activities
and has jurisdiction over such persons (including any successors to any of them)
or (iii) necessary, as of the Effective Date, to accomplish the
transactions contemplated hereby.

“Gaming Authority”:  as to any Person, any governmental agency,
authority, board, bureau, commission, department, office or instrumentality
with regulatory, licensing or permitting authority or jurisdiction over any
gaming business or enterprise or any Gaming Facility, or with regulatory,
licensing or permitting authority or jurisdiction over any gaming operation (or
proposed gaming operation) owned, managed or operated by any Group Member.

“Gaming Facility”:  as to any Person, any lottery operation,
gaming establishment and other property or assets directly ancillary thereto or
used in connection therewith, including, without limitation, any casinos,
hotels, resorts, race tracks, off-track wagering sites and other recreation and
entertainment facilities owned, managed or operated by any Group Member.

 13
 

 

“Gaming Laws”: 
as to any Person, (a) constitutions, treaties, statutes or laws
governing Gaming Facilities (including, without limitation, pari-mutuel race
tracks) and rules, regulations, codes and ordinances of, and all administrative
or judicial orders or decrees or other laws pursuant to which, any Gaming
Authority possesses regulatory, licensing or permit authority over gambling,
gaming or Gaming Facility activities conducted by any Group Member within its
jurisdiction, (b) Gaming Approvals and (c) orders, decisions,
determinations, judgments, awards and decrees of any Gaming Authority.

“Global Draw Acquisition”:  the purchase of Global Draw, Ltd, a supplier
of fixed odds betting terminals and systems, and interactive betting systems,
and certain related companies from Walter Grubmueller and other parties.

“Governmental Authority”:  any nation or government, any state or other
political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative functions of or
pertaining to government, any securities exchange and any self-regulatory
organization (including the National Association of Insurance Commissioners).

“Group Members”:  the collective reference to the Borrower and
its Subsidiaries.

“Guarantee and Collateral Agreement”:  the Guarantee and Collateral Agreement
executed and delivered by the Borrower and each Subsidiary Guarantor,
substantially in the form of Exhibit A.

“Guarantee Obligation”:  as to any Person (the “guaranteeing person”),
any obligation of (a) the guaranteeing person or (b) another Person
(including any bank under any letter of credit) to induce the creation of which
the guaranteeing person has issued a reimbursement, counterindemnity or similar
obligation, in either case guaranteeing or in effect guaranteeing any
Indebtedness, leases, dividends or other obligations (the “primary
obligations”) of any other third Person (the “primary obligor”) in
any manner, whether directly or indirectly, including any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (1) for the purchase or
payment of any such primary obligation or (2) to maintain working capital
or equity capital of the primary obligor or otherwise to maintain the net worth
or solvency 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 owner
of any such primary obligation against loss in respect thereof; provided,
however, that the term Guarantee Obligation shall not include endorsements
of instruments for deposit or collection in the ordinary course of business. The
amount of any Guarantee Obligation of any guaranteeing person shall be deemed
to be the lower of (a) an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Guarantee Obligation
is made and (b) the maximum amount for which such guaranteeing person may
be liable pursuant to the terms of the instrument embodying such Guarantee
Obligation, unless such primary obligation and the maximum amount for which
such guaranteeing person may be liable are not stated or determinable, in which
case the amount of such Guarantee Obligation shall be 

 14
 

 

such guaranteeing person’s
maximum reasonably anticipated liability in respect thereof as determined by
the Borrower in good faith.

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

“Indebtedness”: 
of any Person at any date, without duplication, (a) all
indebtedness of such Person for borrowed money, (b) all obligations of
such Person for the deferred purchase price of property or services (other than
current trade payables incurred in the ordinary course of such Person’s
business), (c) all obligations of such Person evidenced by notes, bonds,
debentures or other similar instruments, (d) all indebtedness created or
arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property), (e) all Capital
Lease Obligations of such Person, (f) all obligations of such Person,
contingent or otherwise, as an account party or applicant under or in respect
of acceptances, letters of credit, surety bonds or similar arrangements, (g) the
liquidation value of all mandatorily redeemable preferred Capital Stock of such
Person, (h) all Guarantee Obligations of such Person in respect of
obligations of the kind referred to in clauses (a) through (g) above
and (i) all obligations of the kind referred to in clauses (a) through
(h) above secured by (or for which the holder of such obligation has an
existing right, contingent or otherwise, to be secured by) any Lien on Property
(including accounts and contract rights) owned by such Person, whether or not
such Person has assumed or become liable for the payment of such obligation. The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness expressly provide that such Person is not liable
therefor.

“Indemnified Liabilities”:  as defined in Section 11.5.

“Indemnitee”: 
as defined in Section 11.5.

“Ineligible Assignee”:  any Person that is (a) to the extent
required under applicable Gaming Laws, a Person who is not registered or
licensed with, approved, qualified or found suitable by, or has been
disapproved, denied a license, qualification or approval or found unsuitable
(whichever may be required under applicable Gaming Laws) or (b) a
competitor of the Borrower or an affiliate or related entity of any such
competitor.

“Insolvency”: 
with respect to any Multiemployer Plan, the condition that such Plan is
insolvent within the meaning of Section 4245 of ERISA.

 15
 

 

“Insolvent”: 
pertaining to a condition of Insolvency.

“Intellectual Property”:  the collective reference to all rights,
priorities and privileges relating to intellectual property, whether arising
under United States, multinational or foreign laws or otherwise, including
copyrights, copyright licenses, patents, patent licenses, trademarks, trademark
licenses, technology, know-how and processes, and all rights to sue at law or
in equity for any infringement or other impairment thereof, including the right
to receive all proceeds and damages therefrom.

“Interest Payment Date”:  (a) as to any Base Rate Loan (other than
a Swingline Loan), the last day of each March, June, September and December to
occur while such Loan is outstanding and the final maturity date of such Loan, (b) as
to any Eurocurrency Loan having an Interest Period of three months or less, the
last day of such Interest Period, (c) as to any Eurocurrency Loan having
an Interest Period longer than three months, each day that is three months, or
a whole multiple thereof, after the first day of such Interest Period and the
last day of such Interest Period, (d) as to any Loan (other than any
Dollar Revolving Loan that is a Base Rate Loan and is prepaid prior to the end
of the Revolving Commitment Period), the date of any repayment or prepayment
made in respect thereof and (e) as to any Swingline Loan, the day that
such Loan is required to be repaid.

“Interest Period”:  as to any Eurocurrency Loan, (a) initially,
the period commencing on the borrowing or conversion date, as the case may be,
with respect to such Eurocurrency Loan and ending one, two, three or six months
thereafter, or, if available from all participating Lenders, nine or 12 months
thereafter, as selected by the Borrower in its notice of borrowing or notice of
conversion, as the case may be, given with respect thereto; and (b) thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such Eurocurrency Loan and ending one, two, three or six months
thereafter, or, if available from all participating Lenders, nine or 12 months
thereafter, as selected by the Borrower by irrevocable notice to the
Administrative Agent not later than 11:00 A.M., New York City time, three
Business Days prior to the last day of the then current Interest Period with
respect thereto; provided that all of the foregoing provisions relating
to Interest Periods are subject to the following:

(i)       if any Interest Period would otherwise
end on a day that is not a Business Day, such Interest Period shall be extended
to the next succeeding Business Day unless the result of such extension would
be to carry such Interest Period into another calendar month in which event
such Interest Period shall end on the immediately preceding Business Day;

(ii)      the Borrower may not select an Interest
Period under a particular Facility that would extend beyond the Revolving
Termination Date (in the case of a Revolving Facility) or beyond the date final
payment is due on the Tranche C Term Loans or the Tranche D Term Loans, as the
case may be; and

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

 16
 

 

“Investments”: 
as defined in Section 8.8.

“Issuing Lender”:  JPMorgan Chase Bank, N.A., in its capacity as
issuer of Letters of Credit hereunder, The Bank of New York, in its capacity as
issuer of the Existing Letters of Credit and other Letters of Credit, and their
respective successors or any other Revolving Lender under the relevant
Revolving Facility from time to time designated by the Borrower as an Issuing
Lender under such Revolving Facility with the consent of such Revolving Lender
and the Administrative Agent. An Issuing Lender may, in its discretion, arrange
for one or more Letters of Credit to be issued by Affiliates of such Issuing
Lender, in which case the term “Issuing Lender” shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate.

“Judgment Currency”:  as defined in Section 11.18(b).

“L/C Commitment”:  $200,000,000.

“L/C Disbursement”:  the amount of a drawing under a Letter of
Credit that has not then been reimbursed pursuant to Section 3.11.

“L/C Fee Payment Date”:  the last day of each March, June, September and
December and the last day of the Revolving Commitment Period.

“L/C Obligations”:  Dollar L/C Obligations and Multicurrency L/C Obligations.

“L/C Participants”:  with respect to any Letter of Credit issued
under a Revolving Facility or L/C Disbursement thereunder, the collective
reference to all the Revolving Lenders under such Revolving Facility other than
the Issuing Lender that issued such Letter of Credit.

“Lead Arranger”:  J.P. Morgan Securities Inc., in its capacity
as lead arranger and bookrunner for each Facility.

“Lender Affiliate”:  (a) any Affiliate of any Lender, (b) any
Person that is administered or managed by any Lender and that is engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business and (c) with
respect to any Lender which is a fund that invests in commercial loans and
similar extensions of credit, any other fund that invests in commercial loans
and similar extensions of credit and is managed or advised by the same
investment advisor as such Lender or by an Affiliate of such Lender or
investment advisor.

“Lenders”: 
the Persons listed on Schedule 2.1, 2.1A, 2.1C or 2.1D and any
other Person that shall have become a party hereto pursuant to an Assignment
and Assumption, other than any such Person that ceases to be a party hereto
pursuant to an Assignment and Assumption; provided that, unless the
context otherwise requires, each reference herein to the Lenders shall be
deemed to include any Swingline Lender, Issuing Lender or Conduit Lender.

“Letter of Credit”:  a Dollar Letter of Credit or a Multicurrency
Letter of Credit.

 17
 

 

“Lien”: 
any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge or other security interest or
any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including any conditional sale or
other title retention agreement and any capital lease having substantially the
same economic effect as any of the foregoing).

“Loan”: 
any loan made by any Lender pursuant to this Agreement.

“Loan Documents”:  this Agreement, the Security Documents, the
Notes and the Amendment and Restatement Agreement.

“Loan Parties”: 
each Group Member that is a party to a Loan Document.

“Majority Facility Lenders”:  with respect to any Facility, the holders of
more than 50% of the aggregate unpaid principal amount of the Tranche C Term
Loans, Tranche D Term Loans or the Total Revolving Extensions of Credit,
as the case may be, outstanding under such Facility (or, in the case of a
Revolving Facility, prior to any termination of the Revolving Commitments
thereunder, the holders of more than 50% of the Total Revolving Commitments
thereunder).

“Material Acquisition”:  any acquisition of property or series of
related acquisitions of property that (a) constitutes assets comprising
all or substantially all of an operating unit of a business or constitutes all
or substantially all of the common stock of a Person and (b) involves the
payment of consideration by the Borrower and its Subsidiaries in excess of
$5,000,000, and in any event shall include the EssNet Acquisition and the
Racing Venue Acquisition.

“Material Adverse Effect”:  a material adverse effect on (a) the
business, assets, property, condition (financial or otherwise), results of
operations or prospects of the Borrower and its Subsidiaries, taken as a whole
or (b) the validity or enforceability of this Agreement or any of the
other Loan Documents or the rights or remedies of the Agents or the Lenders
hereunder or thereunder.

“Material Contract”:  each contract of the Group Members described
on Schedule 5.23.

“Material Disposition”:  any Disposition of property or series of
related Dispositions of property that yields gross proceeds to the Borrower or
any of its Subsidiaries in excess of $5,000,000.

“Material Indebtedness”:  Indebtedness (other than the Loans and
Letters of Credit), or obligations in respect of one or more Hedge Agreements,
of the Borrower or any Subsidiary in an aggregate principal amount exceeding
$5,000,000. For purposes of determining Material Indebtedness, the “principal
amount” of the obligations of the Borrower or any Subsidiary in respect of any
Hedge Agreement at any time shall be the maximum aggregate 

 18
 

 

amount (giving effect to
any netting agreements) that the Borrower or such Subsidiary would be required
to pay if such Hedge Agreement were terminated at such time.

“Materials of Environmental Concern”:  any gasoline or petroleum (including crude
oil or any fraction thereof) or petroleum products, asbestos or
asbestos-containing material, polychlorinated biphenyls, urea-formaldehyde
insulation, any hazardous or toxic substances, materials or wastes, defined as
such or regulated pursuant to any applicable Environmental Laws, and any other
substances that could reasonably be expected to result in liability under any
applicable Environmental Laws.

“Maximum Rate”: 
as defined in Section 11.19.

“Mortgaged Properties”:  the real properties listed on
Schedule 1.1(a), as to which the Administrative Agent for the benefit of
the Lenders shall be granted a Lien pursuant to the Mortgages.

“Mortgages”: 
each of the mortgages and deeds of trust, as applicable, made by any
Loan Party in favor of, or for the benefit of, the Administrative Agent for the
benefit of the Lenders, substantially in the form of Exhibit D (with such
changes thereto as shall be advisable under the law of the jurisdiction in
which such mortgage or deed of trust is to be recorded).

“Multicurrency L/C Obligations”:  at any time, an amount equal to the sum of (a) the
aggregate then undrawn and unexpired amount of the then outstanding
Multicurrency Letters of Credit (including the Dollar Equivalent of
Multicurrency Letters of Credit issued in Foreign Currencies) and (b) the
aggregate amount of drawings under Multicurrency Letters of Credit (including the
Dollar Equivalent of Multicurrency Letters of Credit issued in Foreign
Currencies to the extent such amounts have not been converted to Dollars in
accordance with the terms hereof) that have not then been reimbursed pursuant
to Section 3.11.

“Multicurrency Letters of Credit”:  as defined in Section 3.7(a).

“Multicurrency Revolving Commitment”:  as to any Multicurrency Revolving Lender, the
obligation of such Lender, if any, to make Multicurrency Revolving Loans and
participate in Multicurrency Letters of Credit in an aggregate principal and/or
face amount (based on Dollar Equivalents, in the case of amounts denominated in
Foreign Currencies) not to exceed the amount set forth under the heading “Multicurrency
Revolving Commitment” with respect to such Lender on Schedule 2.1 or in
the Assignment and Assumption pursuant to which such Lender became a party to
this Agreement, as the same may be changed from time to time pursuant to the
terms hereof. The aggregate amount of the Multicurrency Revolving Commitments
on the Restatement Effective Date is $100,000,000.

“Multicurrency Revolving Extensions of Credit”:  as to any Multicurrency Revolving Lender at
any time, an amount equal to the sum of (a) the aggregate principal amount
of all Multicurrency Revolving Loans denominated in Dollars held by such Lender
then outstanding, (b) such Lender’s Multicurrency Revolving Percentage of
the Multicurrency L/C Obligations then outstanding and (c) such Lender’s
Multicurrency Revolving Percentage of the 

 19
 

 

Dollar Equivalent of the
aggregate principal amount of Multicurrency Revolving Loans denominated in
Foreign Currencies then outstanding.

“Multicurrency Revolving Facility”:  the credit facility represented by the
Multicurrency Revolving Commitments and the Multicurrency Revolving Extensions
of Credit.

“Multicurrency Revolving Lender”:  each Lender that has a Multicurrency
Revolving Commitment or any Multicurrency Revolving Extensions of Credit.

“Multicurrency Revolving Loans”:  as defined in Section 3.1(a).

“Multicurrency Revolving Percentage”:  as to any Multicurrency Revolving Lender at
any time, the percentage which such Lender’s Multicurrency Revolving Commitment
then constitutes of the Total Multicurrency Revolving Commitments (or, at any
time after the Multicurrency Revolving Commitments shall have expired or
terminated, the percentage which the aggregate principal amount of such Lender’s
Multicurrency Revolving Extensions of Credit then outstanding constitutes of
the Total Multicurrency Revolving Extensions of Credit then outstanding of all
Multicurrency Revolving Lenders).

“Multiemployer Plan”:  a Plan that is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.

“Net Cash Proceeds”:  (a) in connection with any Asset Sale or
any Recovery Event, the proceeds thereof in the form of cash and Cash
Equivalents (including any such proceeds received by way of deferred payment of
principal pursuant to a note or installment receivable or purchase price
adjustment receivable or by the Disposition of any non-cash consideration
received in connection therewith or otherwise, but only as and when received)
of such Asset Sale or Recovery Event, net of attorneys’ fees, accountants’
fees, investment banking fees, brokers’ fees, amounts required to be applied to
the repayment of Indebtedness secured by a Lien expressly permitted hereunder
on any asset that is the subject of such Asset Sale or Recovery Event (other
than any Lien pursuant to a Security Document) and other customary fees and
expenses actually incurred in connection therewith and net of taxes paid or
reasonably estimated to be payable as a result thereof (after taking into
account any available tax credits or deductions and any tax sharing
arrangements) and (b) in connection with any issuance or sale of Capital
Stock or any incurrence of Indebtedness, the cash proceeds received from such
issuance or incurrence, net of attorneys’ fees, investment banking fees,
accountants’ fees, underwriting discounts and commissions and other customary
fees and expenses actually incurred in connection therewith.

“New Co-Operative Services Contract”:  any new contract relating to the
establishment and operation of a co-operative service instant ticket lottery
with a customer for whom neither the Borrower nor any of its Subsidiaries
operated a co-operative service instant ticket lottery on or prior to the date
such contract is entered into or any new contract relating to a co-operative
service instant ticket lottery with an existing customer of the Borrower or any
of its Subsidiaries that was entered into in accordance with normal
jurisdictional laws regarding “request for proposal” procedures, provided
that such contract shall cease to be a New Co-

 20
 

 

Operative Services
Contract on the date on which the Borrower or such Subsidiary commences “commercial
operations” under such contract.

“New On-Line Contract”:  any new contract relating to the
establishment and operation of an on-line lottery system with a customer for
whom neither the Borrower nor any of its Subsidiaries operated an on-line lottery
system on or prior to the date such contract is entered into or any new
contract relating to an on-line lottery system with an existing customer of the
Borrower or any of its Subsidiaries that was entered into in accordance with
normal jurisdictional laws regarding “request for proposal” procedures; provided
that, such contract shall cease to be a New On-Line Contract on the date on
which the Borrower or such Subsidiary commences “commercial operations” under
such contract.

“New Pari-Mutuel Contract”:  a new contract relating to the establishment
and operation of a pari-mutuel wagering system at a horse track, dog track or
off-track betting facility where neither the Borrower nor any of its
Subsidiaries previously operated a pari-mutuel wagering system, provided
that such contract shall cease to be a New Pari-Mutuel Contract on the date on
which the Borrower or such Subsidiary commences “commercial operations” under
such contract.

“Non-Excluded Taxes”:  as defined in Section 4.10(a).

“Non-Guarantor Subsidiary”:  any Subsidiary that is not a Subsidiary
Guarantor.

“Non-U.S. Lender”:  as defined in Section 4.10(d).

“Notes”: 
the collective reference to any promissory note evidencing Loans.

“Obligations”: 
the unpaid principal of and interest on (including interest accruing
after the maturity of the Loans and Reimbursement Obligations and interest
accruing after the filing of any petition in bankruptcy, or the commencement of
any insolvency, reorganization or like proceeding, relating to the Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) the Loans and all other obligations and liabilities of the
Borrower to any Agent or to any Lender (or, in the case of Specified Hedge
Agreements, any affiliate of any Lender or any counterparty to a Specified
Hedge Agreement set forth on Schedule 1.1(b)), whether direct or indirect,
absolute or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with, this Agreement,
any other Loan Document, the Letters of Credit, any Specified Hedge Agreement
or any other document made, delivered or given in connection herewith or
therewith, whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses (including all fees, charges
and disbursements of counsel to any Agent or to any Lender that are required to
be paid by the Borrower pursuant to this Agreement) or otherwise; provided
that (i) obligations of the Borrower or any Subsidiary under any Specified
Hedge Agreement shall be secured and guaranteed pursuant to the Security
Documents only to the extent that, and for so long as, the other Obligations
are so secured and guaranteed and (ii) any release of Collateral or
Subsidiary Guarantors effected in the manner permitted by this Agreement shall
not require the consent of holders of obligations under Specified Hedge
Agreements.

 21
 

 

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

“Participant”: 
as defined in Section 11.6(c).

“PBGC”: 
the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA (or any successor).

“Perfection Certificate”:  as defined in the Guarantee and Collateral
Agreement.

“Permitted Acquisition”:  as to any Person, (a) the acquisition by
such Person of the Capital Stock of another Person which is primarily engaged
in the same or related line of business of the Borrower and its Subsidiaries
(or any other Person that is engaged in a business that is a reasonable
extension of the business of the Borrower and its Subsidiaries and that
utilizes the same or similar technology as that used by the Borrower and its
Subsidiaries immediately prior to such acquisition) so long as following such
acquisition such other Person becomes a Subsidiary of such Person or (b) the
acquisition by such Person of all or substantially all of the assets of another
Person or all or substantially all of the assets constituting a division or
business unit of another Person.

“Permitted Additional Senior Indebtedness”:  Indebtedness in respect of unsecured debt
issued by the Borrower; provided that (a) such Indebtedness matures
no earlier than, and does not require any scheduled payment of principal,
mandatory prepayment or redemption of principal prior to, June 30, 2010
(except for up to $5,000,000 of principal payments during any year, in the
aggregate for all such Indebtedness, with carry forwards to the extent such
$5,000,000 allowed amount is not used in any year), (b) the other terms of
such Indebtedness, taken as a whole, are no less favorable to the Borrower and
the Lenders in any material respect than those of senior unsecured debt
securities issued in the capital markets by similarly rated issuers, (c) such
Indebtedness is not subject to any Guarantee Obligation by any Person that is
not a Subsidiary Guarantor (and any such Guarantee Obligation shall provide for
release thereof if the Guarantee Obligation of the applicable Subsidiary in
respect of the Obligations is released), (d) at the time of and after giving
effect to the incurrence of such Indebtedness, no Default or Event of Default
has occurred and is continuing, (e) the Borrower shall be in compliance
with the covenants set forth in Section 8.1 as of the last day of the most
recently ended fiscal quarter of the Borrower for which financial statements
are available at the time of issuance of such Indebtedness, determined on a pro
forma basis as though (i) such issuance of Indebtedness, and any other
incurrence or repayment of long-term Indebtedness subsequent to the end of such
fiscal quarter, had occurred on the last day of such fiscal quarter, for
purposes Sections 8.1(a) and (c), (ii) such issuance of
Indebtedness, and any other issuance of Permitted Additional Senior
Indebtedness or Permitted Additional Subordinated Debt issued subsequent to the
end of such fiscal quarter (and any repayment of Indebtedness refinanced with
the proceeds of such issuance), had occurred on the first day of the period of
four consecutive fiscal quarters ended on the last day of such fiscal quarter,
for purposes of Section 8.1(d), and (iii) any Material Acquisition,
Material Disposition, New On-Line Contract, New Co-Operative 

 22
 

 

Services Contract or New
Pari-Mutuel Contract made or entered into (or being made or entered into in
connection with such issuance of Indebtedness) subsequent to the end of such
fiscal quarter had been made or entered into on the first day of the period of
four consecutive fiscal quarters ended on the last day of such fiscal quarter,
for purposes of calculating Consolidated EBITDA, and (f) the Borrower
shall have delivered to the Administrative Agent, at least five Business Days
prior to the issuance of such Indebtedness, a description of the terms and
conditions of such Indebtedness and calculations demonstrating compliance with
clause (d) above, in each case certified by a financial officer of
the Borrower.

“Permitted Additional Subordinated Debt”:  Indebtedness in respect of unsecured
subordinated debt issued by the Borrower; provided that (a) such
subordinated Indebtedness matures no earlier than, and does not require any
scheduled payment of principal prior to, the scheduled maturity of the Senior
Subordinated Notes, (b) the terms and conditions of such subordinated
Indebtedness (other than interest rates and redemption premiums, which shall be
based on market conditions at the time of issuance), including, without
limitation, the subordination provisions thereof, shall be no less favorable to
the Lenders and the Loan Parties than those of the Senior Subordinated Notes, (c) such
Indebtedness shall not be subject to any Guarantee Obligation other than
Guarantee Obligations of Subsidiary Guarantors that are subordinated to the
same extent as the obligations of the Borrower in respect of such Indebtedness,
(d) the Borrower shall be in compliance with the covenants set forth in Section 8.1
as of the last day of the most recently ended fiscal quarter of the Borrower
for which financial statements are available at the time of issuance of such
Indebtedness, determined on a pro forma basis as though (i) such issuance
of subordinated Indebtedness, and any other incurrence or repayment of
long-term Indebtedness subsequent to the end of such fiscal quarter, had
occurred on the last day of such fiscal quarter, for purposes Sections 8.1(a) and
(c), (ii) such issuance of subordinated Indebtedness, and any other
issuance of Permitted Additional Subordinated Debt or Permitted Additional
Senior Indebtedness issued subsequent to the end of such fiscal quarter (and
any repayment of Indebtedness refinanced with the proceeds of such issuance),
had occurred on the first day of the period of four consecutive fiscal quarters
ended on the last day of such fiscal quarter, for purposes of Section 8.1(d),
and (iii) any Material Acquisition, Material Disposition, New On-Line
Contract, New Co-Operative Services Contract or New Pari-Mutuel Contract made
or entered into (or being made or entered into in connection with such issuance
of subordinated Indebtedness) subsequent to the end of such fiscal quarter had
been made or entered into on the first day of the period of four consecutive
fiscal quarters ended on the last day of such fiscal quarter, for purposes of
calculating Consolidated EBITDA, and (e) the Borrower shall have delivered
to the Administrative Agent, at least five Business Days prior to the issuance
of such subordinated Indebtedness, a description of the terms and conditions of
such subordinated Indebtedness and calculations demonstrating compliance with
clause (d) above, in each case certified by a financial officer of
the Borrower.

“Permitted Expenditure Amount”:  at any date, the amount equal to (a) the
sum of (i) (A) 50% of the amount of Consolidated Net Income for each
quarterly period ended after the Effective Date for which financial statements
have been delivered pursuant to Section 7.1 to
the extent the Consolidated Net Income for such period is positive less (B) 100%
of the amount of Consolidated Net Income for each quarterly period ended after
the Effective Date for which 

 23
 

 

financial statements have
been delivered pursuant to Section 7.1 to the extent the Consolidated Net
Income for such period is negative (in no event shall the amount in this
clause (i) be less than zero); (ii) 100% of the Net Cash
Proceeds received by the Borrower from the sale of Capital Stock of the
Borrower (other than to a Group Member) during the period beginning on the
Effective Date and ending on such date; and (iii) $5,000,000, minus
(b) the aggregate amount of Expenditure Use Amounts as of such date. For
purposes of this definition, Consolidated Net Income for any period shall be
adjusted to add back (to the extent otherwise deducted and without duplication)
(1) in the case of the fiscal quarters ended December 31, 2005 and March 31,
2006, the non-cash expense to discontinue the Supplemental Executive Retirement
Plan in amounts not exceeding $12,400,000 and $314,000, respectively, (2) non-cash
stock-based compensation expenses and (3) in the case of the fiscal
quarter ended March 31, 2006, acquisition-related or unusual expenses
incurred by Global Draw, Ltd in an aggregate amount not exceeding the Dollar
Equivalent of British Pounds Sterling 4,000,000.

“Person”: 
an individual, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint
venture, Governmental Authority or other entity of whatever nature.

“Peru Investments”:  Investments by the Borrower to International
Lotto Corporation and Scientific Games del Peru, s.R.L. listed on Schedule
8.8(j).

“Plan”: 
at a particular time, any employee benefit plan that is covered by ERISA
and in respect of which the Borrower or a Commonly Controlled Entity is (or, if
such plan were terminated at such time, would under Section 4069 of ERISA
be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Pricing Grid”: 
the pricing grid attached to this Agreement as Annex A.

“Prior Credit Agreement”:  the Amended and Restated Credit Agreement,
dated as of November 6, 2003 (as amended, supplemented or otherwise
modified prior to the Effective Date), among the Borrower, the several banks
and other financial institutions from time to time parties thereto, Bear,
Stearns & Co. Inc., as sole lead arranger and sole bookrunner,
Deutsche Bank Securities Inc. and Credit Suisse First Boston, as co-arrangers
and co-documentation agents, Bear Stearns Corporate Lending Inc., as
syndication agent, and The Bank of New York, as administrative agent.

“Projections”: 
as defined in Section 7.2(c).

“Property”: 
any right or interest in or to property of any kind whatsoever, whether
real, personal or mixed and whether tangible or intangible, including, without
limitation, Capital Stock.

“Racing Venue Acquisition”:  the purchase of assets by the Borrower of a
domestic parimutuel business (identified to the Administrative Agent prior to
the First Restatement Effective Date) from a limited partnership on terms and
conditions satisfactory to the Borrower.

 24

 

“Recovery Event”:  any settlement of or payment in respect of
any property or casualty insurance claim or any condemnation proceeding
relating to any asset of any Group Member.

“Reference Lender”:  JPMorgan Chase Bank, N.A.

“Refunded Swingline Loans”:  as defined in Section 3.4.

“Refunding Date”:  as defined in Section 3.4.

“Register”: 
as defined in Section 11.6.

“Regulation U”: 
Regulation U of the Board as in effect from time to time.

“Reimbursement Obligation”:  the obligation of the Borrower to reimburse
each Issuing Lender pursuant to Section 3.11 for amounts drawn under
Letters of Credit issued by such Issuing Lender.

“Reinvestment Deferred Amount”:  with respect to any Reinvestment Event, the
aggregate Net Cash Proceeds received by any Group Member in connection
therewith that are not applied to prepay the Term Loans pursuant to Section 4.2(c) as
a result of the delivery of a Reinvestment Notice.

“Reinvestment Event”:  any Asset Sale or Recovery Event in respect
of which the Borrower has delivered a Reinvestment Notice.

“Reinvestment Notice”:  a written notice executed by a Responsible
Officer stating that no Event of Default has occurred and is continuing and
that the Borrower (directly or indirectly through a Subsidiary) intends and
expects to use all or a specified portion of the Net Cash Proceeds of an Asset
Sale or Recovery Event to make a Permitted Acquisition or to acquire or repair
fixed or capital assets or develop software useful in its business, provided
that the cost of any such software development is capitalized on the Borrower’s
balance sheet in accordance with GAAP.

“Reinvestment Prepayment Amount”:  with respect to any Reinvestment Event, the
Reinvestment Deferred Amount relating thereto less any amount expended prior to
the relevant Reinvestment Prepayment Date to make a Permitted Acquisition or to
acquire or repair fixed or capital assets or develop software useful in its
business, provided that the cost of any such software development is
capitalized on the Borrower’s balance sheet in accordance with GAAP.

“Reinvestment Prepayment Date”:  with respect to any Reinvestment Event, the
earlier of (a) the date occurring twelve months after such Reinvestment
Event and (b) the date on which the Borrower shall have determined not to,
or shall have otherwise ceased to, acquire or repair fixed or capital assets or
develop software useful in its business or make a Permitted Acquisition with
all or any portion of the relevant Reinvestment Deferred Amount.

 25
 

 

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

“Reorganization”:  with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section 4241
of ERISA.

“Reportable Event”:  any of the events set forth in Section 4043(c) of
ERISA, other than those events as to which the 30 day notice period is
waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC
Reg. § 4043.

“Required Lenders”:  at any time, the holders of more than 50% of
the sum of (a) the aggregate unpaid principal amount of the Tranche C Term
Loans then outstanding, (b) the aggregate unpaid principal amount of the Tranche D
Term Loans then outstanding  and  (c) the Total Revolving Commitments then
in effect (or, if the Revolving Commitments under a Revolving Facility have
been terminated, the Total Revolving Extensions of Credit under such Revolving
Facility then outstanding).

“Requirement of Law”:  as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents
of such Person, and any law, treaty, rule or regulation or determination
of an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which
such Person or any of its property is subject.

“Reset Date”: 
as defined in Section 4.16(a).

“Responsible Officer”:  the chief executive officer, president,
general counsel, chief financial officer, 
treasurer or chief accounting officer of the Borrower, but in any event,
with respect to financial matters, the chief financial officer, treasurer or
chief accounting officer of the Borrower.

“Restatement Effective Date”:  as defined in the Amendment and Restatement
Agreement.

“Restatement Transactions”:  collectively: 
(a) the execution, delivery and performance by the Borrower of the
Amendment and Restatement Agreement and the consummation of the transactions
contemplated thereby, including the borrowing of the Tranche D Term Loans
and the application of the proceeds thereof and (b) the transactions
referred to in clauses (c), (d) and (f) of the definition of “Transactions”.

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

 26
 

 

“Revolving Commitment”:  a Dollar Revolving Commitment or a
Multicurrency Revolving Commitment.

“Revolving Commitment Period”:  the period from and including the Effective
Date to the Revolving Termination Date.

“Revolving Extensions of Credit”:  Dollar Revolving Extensions of Credit or
Multicurrency Revolving Extensions of Credit (or both), as applicable.

“Revolving Facility”:  the Dollar Revolving Facility or the
Multicurrency Revolving Facility.

“Revolving Lender”:  a Dollar Revolving Lender or a Multicurrency
Revolving Lender.

“Revolving Loan”:  a Dollar Revolving Loan or a Multicurrency
Revolving Loan.

“Revolving Percentage”:  a Dollar Revolving Percentage or a
Multicurrency Revolving Percentage, as applicable.

“Revolving Termination Date”:  December 23, 2009.

“SEC”: 
the Securities and Exchange Commission, any successor thereto and any
analogous Governmental Authority.

“Secured Surety Bond:” as defined in Section 8.3(q).

“Security Documents”:  the collective reference to the Guarantee and
Collateral Agreement, the Mortgages and all other security documents hereafter
delivered to the Administrative Agent granting a Lien on any property of any
Person to secure the obligations and liabilities of any Loan Party under any
Loan Document.

“Senior Subordinated Notes”:  the unsecured Senior Subordinated Notes due
2012 of the Borrower to be issued on or about the Effective Date in an
aggregate principal amount of $200,000,000.

“Senior Subordinated Securities”:  (a) the Existing Subordinated Notes, (b) the
Senior Subordinated Notes, (c) the Convertible Senior Subordinated
Debentures and (d) any Permitted Additional Subordinated Debt.

“Senior Subordinated Securities Indentures”:  the indentures entered into by the Borrower
and certain of its Subsidiaries in connection with the issuance of the Senior
Subordinated Securities, together with all instruments and other agreements
entered into by the Borrower or such Subsidiaries in connection therewith.

 “Single
Employer Plan”:  any Plan that is
covered by Title IV of ERISA, but that is not a Multiemployer Plan.

 27
 

 

“Solvent”: 
when used with respect to any Person, means that, as of any date of
determination, (a) the amount of the “present fair saleable value” of the
assets of such Person will, as of such date, exceed the amount of all “liabilities
of such Person, contingent or otherwise”, as of such date, as such quoted terms
are determined in accordance with applicable federal and state laws governing
determinations of the insolvency of debtors, (b) the present fair saleable
value of the assets of such Person will, as of such date, be greater than the
amount that will be required to pay the liability of such Person on its debts
as such debts become absolute and matured, (c) such Person will not have,
as of such date, an unreasonably small amount of capital with which to conduct
its business, and (d) such Person will be able to pay its debts as they
mature. For purposes of this definition, (i) ”debt” means liability on a “claim”,
and (ii) ”claim” means any (x) right to payment, whether or not such
a right is reduced to judgment, liquidated, unliquidated, fixed, contingent,
matured, unmatured, disputed, undisputed, legal, equitable, secured or
unsecured or (y) right to an equitable remedy for breach of performance if
such breach gives rise to a right to payment, whether or not such right to an
equitable remedy is reduced to judgment, fixed, contingent, matured or
unmatured, disputed, undisputed, secured or unsecured.

“Specified Change of Control”:  a “Change of Control” (or any other
defined term having a similar purpose) as defined in any of the Senior
Subordinated Securities Indentures.

“Specified Hedge Agreement”:  any Hedge Agreement (a) entered into by (i) the
Borrower or any of its Subsidiaries and (ii) any Person that was a Lender
or any affiliate thereof at the time such Hedge Agreement was entered into, as
counterparty and (b) that has been designated by such Person or affiliate,
as the case may be, and the Borrower, by notice to the Administrative Agent, as
a Specified Hedge Agreement, and any other Hedge Agreements listed on
Schedule 1.1(b) without giving effect to any extension of the
termination or maturity date thereof. The designation of any Hedge Agreement as
a Specified Hedge Agreement shall not create in favor of the Agent, such Person
or affiliate thereof that is a party thereto any rights in connection with the
management or release of any Collateral or of the obligations of any Subsidiary
Guarantor under the Guarantee and Collateral Agreement.

“Subject Properties”:  as defined in Section 5.17(a).

“Subsidiary”: 
as to any Person, (a) a corporation, partnership, limited liability
company or other entity of which shares of stock or other ownership interests
having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a contingency)
to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person and (b) any other Person
the accounts of which are required to be consolidated with those of such Person
in such Person’s consolidated financial statements in accordance with GAAP if
prepared at the date of determination. Unless otherwise qualified, all
references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer
to a direct or indirect Subsidiary or Subsidiaries of the Borrower.

 28
 

 

“Subsidiary Guarantor”:  a Subsidiary that (i) is a Domestic
Subsidiary that is a Wholly Owned Subsidiary, (ii) provides a guarantee of
any Indebtedness of the Borrower (other than the Loans) or any other Subsidiary
Guarantor that is a Domestic Subsidiary if the aggregate principal amount of
all such Indebtedness of the Borrower and such Subsidiary Guarantors guaranteed
by such Subsidiary exceeds $5,000,000, or (iii) becomes a party to the
Loan Documents pursuant to Section 7.9(c).

“Swingline Commitment”:  the obligation of the Swingline Lender to
make Swingline Loans pursuant to Section 3.3 in an aggregate principal
amount at any one time outstanding not to exceed $20,000,000.

“Swingline Lender”:  JPMorgan Chase Bank, N.A., in its capacity as
the lender of Swingline Loans.

“Swingline Loans”:  as defined in Section 3.3.

“Swingline Participation Amount”:  as defined in Section 3.4.

“Syndication Agent”:  Bear Stearns Corporate Lending Inc., in its
capacity as syndication agent for each Facility.

“Tender Offer”: 
the offer to repurchase and related consent solicitation in respect of
the Existing Subordinated Notes pursuant to the terms of the Offer to Purchase
and Solicitation of Consents dated November 24, 2004.

“Term Loan Maturity Date”:  December 23, 2009.

“Term Loan”: 
a Tranche C Term Loan or a Tranche D Term Loan.

“Title Policy”: 
with respect to each Mortgaged Property, a mortgagee’s title insurance
policy (or policies) or marked up unconditional binder for such insurance.

“Total Dollar Revolving Commitments”:  at any time, the aggregate amount of the
Dollar Revolving Commitments of all the Dollar Revolving Lenders.

“Total Dollar Revolving Extensions of Credit”:  at any time, the aggregate amount of the
Dollar Revolving Extensions of Credit of the Dollar Revolving Lenders
outstanding at such time.

“Total Multicurrency Revolving Commitments”:  at any time, the aggregate amount of the
Multicurrency Revolving Commitments of all the Multicurrency Revolving Lenders.

“Total Multicurrency Revolving Extensions of Credit”:  at any time, the aggregate amount of the
Multicurrency Revolving Extensions of Credit of the Multicurrency Revolving
Lenders outstanding at such time.

 29
 

 

“Total Revolving Commitments”:  the Total Dollar Revolving Commitments or
Total Multicurrency Revolving Commitments (or both), as the context requires.

“Total Revolving Extensions of Credit”:  at any time, the Total Dollar Revolving
Extensions of Credit or the Total Multicurrency Revolving Extensions of Credit
(or both), as the context requires.

“Tranche C Term Commitment”:  as to any Lender, the obligation of such
Lender, if any, to make a Tranche C Term Loan to the Borrower hereunder in a
principal amount not to exceed the amount set forth under the heading “Tranche C
Term Commitment” with respect to such Lender on Schedule 2.1A. The
original aggregate amount of the Tranche C Term Commitments is $100,000,000.

“Tranche C Term Lender”:  each Lender that has a Tranche C Term
Commitment or that holds a Tranche C Term Loan.

“Tranche C Term Loan”:  a Loan made on the First Restatement
Effective Date pursuant to Section 2.1 of the Existing Credit Agreement.

“Tranche C Term Percentage”:  as to any Lender, the percentage which the
aggregate principal amount of such Lender’s Tranche C Term Loans then
outstanding constitutes of the aggregate principal amount of the Tranche C Term
Loans then outstanding.

“Tranche D Term Commitment”:  as defined in Section 3 of the Amendment
and Restatement Agreement.

“Tranche D Term Lender”:  each Lender that has a Tranche D Term Commitment
or that holds a Tranche D Term Loan.

“Tranche D Term Loan”:  as defined in Section 3 of the Amendment
and Restatement Agreement.

“Tranche D Term Percentage”:  as to any Tranche D Term Lender at any
time, the percentage which such Lender’s Tranche D Term Commitment then
constitutes of the aggregate Tranche D Term Commitments (or, at any time
after the borrowing of the Tranche D Term Loans, the percentage which the
aggregate principal amount of such Lender’s Tranche D Term Loans then
outstanding constitutes of the aggregate principal amount of the Tranche D
Term Loans then outstanding).

“Transactions”: 
collectively, (a) the issuance of the Senior Subordinated Notes, (b) the
issuance of the Convertible Senior Subordinated Debentures, (c) the
execution, delivery and performance by each Loan Party of the Loan Documents to
which it is or is to be a party, (d) the borrowing of Loans and the use of
the proceeds thereof, including the repayment in full of all obligations under
and termination of the Prior Credit Agreement on the Effective Date, (e) the
consummation of the Tender Offer, (f) the issuance of Letters of Credit, (g) the
consummation of the Convertible Debentures Options Transactions, (h) the
consummation of the transactions 

 30
 

 

contemplated by any of
the foregoing and (i) the payment of fees and expenses in connection with
the foregoing.

“Transfer Transactions”:  collectively, (a) the transfer by
Scientific Games Online Entertainment Systems, Inc., a Delaware
corporation and a Subsidiary Guarantor (“OES”), to Scientific Games
Holdings Limited, a company limited by shares registered in Ireland and a
Non-Guarantor Subsidiary (“SGHL”), of 100% of its ownership in the
foreign contracts and intellectual property described on Schedule 1.1(c) in
exchange for a promissory note issued by SGHL (the “Initial Note”); (b) after
the completion of the transaction described in clause (a) of this
definition, the transfer by SGHL to Scientific Games Worldwide Limited, a
company limited by shares registered in Ireland and a Non-Guarantor Subsidiary
(“SGWL”), of the foreign contracts described on Schedule 1.1(c) as
a result of which the Initial Note will be cancelled and exchanged for
promissory notes issued by SGHL and SGWL in favor of OES in an aggregate
principal amount of $1,500,000; (c) the transfer by the Borrower to SGHL
of 100% of the issued and outstanding Capital Stock of Scientific Games Chile
Limitada, a Chilean limited company and a Non-Guarantor Subsidiary (“SG
Chile”); and (d) the distribution by Scientific Games Finance
Corporation, a Delaware corporation and Subsidiary Guarantor (“SGFC”),
to the Borrower of the promissory notes issued by SG Chile described on
Schedule 1.1(c), which promissory notes the Borrower will subsequently transfer
to SGHL.

“Transferee”: 
any Assignee or Participant.

“2004 Credit Agreement”:  as defined in the recitals hereto.

“2006 Acquisitions”: the Global Draw
Acquisition and the Racing Venue Acquisition.

“2006 JV Contribution”:  the contribution by the Borrower and certain
Subsidiaries of the assets and stock described on Schedule 8.5 to the joint
venture described on such Schedule in exchange for a minority equity interest
in such joint venture.

 “Type”:  as to any Loan, its nature as a Base Rate
Loan or a Eurocurrency Loan.

“United States”:  the United States of America.

“Wholly Owned Subsidiary”:  as to any Person, any other Person all of the
Capital Stock of which (other than directors’ qualifying shares required by
law) is owned by such Person directly and/or through other Wholly Owned
Subsidiaries.

1.2.          Other
Definitional Provisions. (a)  Unless otherwise specified therein, all
terms defined in this Agreement shall have the defined meanings when used in
the other Loan Documents or any certificate or other document made or delivered
pursuant hereto or thereto.

(b)  As used herein and in the other
Loan Documents, and any certificate or other document made or delivered
pursuant hereto or thereto, (i) all terms of an accounting or financial
nature, to the extent not defined, shall have the respective meanings given to
them under GAAP, 

 31
 

 

(ii) the words “include”, “includes” and “including” shall be
deemed to be followed by the phrase “without limitation”, (iii) the word “incur”
shall be construed to mean incur, create, issue, assume, become liable in
respect of or suffer to exist (and the words “incurred” and “incurrence” shall
have correlative meanings), (iv) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, Capital Stock,
securities, revenues, accounts, leasehold interests and contract rights, (v) the
word “will” shall be construed to have the same meaning and effect as the word “shall”
and (vi) references to agreements or other Contractual Obligations shall,
unless otherwise specified, be deemed to refer to such agreements or
Contractual Obligations as amended, supplemented, restated or otherwise
modified from time to time (subject to any applicable restrictions hereunder).

(c)  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, and
Section, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

(d)  The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of
such terms. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neutral forms.

(e)  Any reference to any Person shall
be construed to include such Person’s successors and assigns.

1.3.          Currency
Conversion. (a)  If more than one currency or currency unit are at the
same time recognized by the central bank of any country as the lawful currency
of that country, then (i) any reference in the Loan Documents to, and any
obligations arising under the Loan Documents in, the currency of that country
shall be translated into or paid in the currency or currency unit of that
country designated by the Administrative Agent and (ii) any translation
from one currency or currency unit to another shall be at the official rate of
exchange recognized by the central bank for conversion of that currency or currency
unit into the other, rounded up or down by the Administrative Agent as it deems
appropriate.

(b)  If a change in any currency of a
country occurs, this Agreement shall be amended (and each party hereto agrees
to enter into any supplemental agreement necessary to effect any such
amendment) to the extent that the Administrative Agent determines such
amendment to be necessary to reflect the change in currency and to put the
Lenders in the same position, so far as possible, that they would have been in
if no change in currency had occurred.

SECTION 2. AMOUNT
AND TERMS OF AND TERM LOANS

2.1.          Tranche
D Term Commitments; Tranche C Term Loans. (a)  The Tranche C Term
Loans made pursuant to the Existing Credit Agreement that are outstanding on
the Restatement Effective Date remain outstanding hereunder. The Tranche C
Term Commitments have terminated. The Tranche C Term Loans may from time
to time be 

 32
 

 

Eurocurrency Loans or Base Rate Loans, as determined by the Borrower
and notified to the Administrative Agent in accordance with Section 4.3.

(b)  The Tranche D Term Loans made
pursuant to the Amendment and Restatement Agreement remain outstanding
hereunder. The Tranche D Term Commitments have terminated. The
Tranche D Term Loans may from time to time be Eurocurrency Loans or Base
Rate Loans, as determined by the Borrower and notified to the Administrative
Agent in accordance with Section 4.3.

2.2.          Procedure
for Tranche D Term Loan Borrowing. The Borrower shall give the
Administrative Agent irrevocable notice (which notice must be received by the
Administrative Agent prior to 12:00 Noon, New York City time, (a) one
Business Day prior to the requested Borrowing Date, if all requested Loans are
to be made as Base Rate Loans, for (b) three Business Days prior to the
requested Borrowing Date, if any of the requested Loans are to be Eurocurrency
Loans) requesting that the Tranche D Term Lenders make the Tranche D Term Loans
and specifying (i) the amount and Type of Tranche D Term Loans to be
borrowed, (ii) the requested Borrowing Date and (iii) in the case of
Eurocurrency Loans, the length of the Interest Period therefor. Upon receipt of
such notice the Administrative Agent shall promptly notify each Tranche D Term
Lender thereof. Not later than 12:00 Noon, New York City time, on the
requested Borrowing Date each Tranche D Term Lender shall make available to the
Administrative Agent at the Funding Office an amount in immediately available
funds equal to the Tranche D Term Loan or Tranche D Term Loans to be made by
such Lender. The Administrative Agent shall credit the account of the Borrower
on the books of such office of the Administrative Agent with the aggregate of
the amounts made available to the Administrative Agent by the Tranche D Term
Lenders in immediately available funds.

2.3.          Repayment of Term
Loans.

(a)  The Tranche C Term Loan of each Lender shall be repaid
by the Borrower in quarterly installments on March 31, June 30, September 30
and December 31 of each year, commencing on the first such date that
occurs after the Borrowing Date for the Tranche C Term Loans, each of
which shall be in an amount equal to the product of (i) such Lender’s
Tranche C Term Percentage multiplied by (ii) an amount equal
to the aggregate amount of 
Tranche C Term Loans made on the Borrowing Date therefor multiplied
by (iii) 0.25%; provided that the last such installment shall be
due on the Term Loan Maturity Date in an amount equal to the remaining
principal amount of Tranche C Term Loans.

(b)  The Tranche D Term Loan of each Lender shall be repaid
by the Borrower in quarterly installments on March 31, June 30, September 30
and December 31 of each year, commencing on the first such date that
occurs after the Borrowing Date for the Tranche D Term Loans, each of
which shall be in an amount equal to the product of (i) such Lender’s
Tranche D Term Percentage multiplied by (ii) an amount equal
to the aggregate amount of 
Tranche D Term Loans made on the Borrowing Date therefor multiplied
by (iii) 0.25%; provided that the last such installment shall be
due on the Term Loan Maturity Date in an amount equal to the remaining
principal amount of Tranche D Term Loans.

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2.4.          Incremental
Term Loans. The Borrower may at any time or from time to time, by notice to
the Administrative Agent (whereupon the Administrative Agent shall promptly
deliver a copy to each of the Lenders), request one or more additional tranches
of term loans (the “Incremental Term Loans”); provided that (i) both
at the time of any such request and upon the effectiveness of any Incremental
Term Loan Amendment referred to below, no Default or Event of Default shall
exist and, at the time that any such Incremental Term Loan is made (and after
giving effect thereto), no Default or Event of Default shall exist and (ii) the
Borrower shall be in compliance with Section 8.1 and the Consolidated
Senior Debt Ratio and the Consolidated Leverage Ratio shall be at least 0.25
below the then current level required by Section 8.1, determined on a pro
forma basis as if such Incremental Term Loans had been outstanding on the last
day of the most recent fiscal quarter for testing compliance therewith (and, as
applicable, as if such Incremental Term Loans had been outstanding during the
period of four consecutive fiscal quarters then ended). Each tranche of Incremental
Term Loans shall be in an aggregate principal amount that is not less than
$25,000,000 (or, if less, the remaining unused amount of the total Incremental
Term Loans permitted hereby). The Incremental Term Loans (a) shall be in
an aggregate principal amount not exceeding $150,000,000, (b) shall rank pari
passu in right of payment and of security with the Revolving Loans and
the Term Loans, (c) shall not mature earlier than the Term Loan Maturity
Date (but may, subject to clause (d) below, have amortization prior to
such date), (d) shall not have a weighted average life that is shorter
than the remaining weighted average life of the Term Loans, and (e) except
as set forth above, shall be treated substantially the same as (and in any
event no more favorably than) the Term Loans (in each case, including with
respect to mandatory and voluntary prepayments); provided that (i) the
terms and conditions applicable to Incremental Term Loans maturing after the
Term Loan Maturity Date may provide for material additional or different
financial or other covenants or prepayment requirements applicable only during
periods after the Term Loan Maturity Date and (ii) the Incremental Term
Loans may be priced differently than the Term Loans. Each notice shall set
forth the requested amount and proposed terms of the relevant Incremental Term
Loans. Each existing Lender shall be afforded the opportunity, but shall not be
required, to provide a ratable share (including a share of any Incremental Term
Loans not subscribed to by other existing Lenders) of any Incremental Term
Loans. In the event that existing Lenders provide commitments in an aggregate
amount less than the total amount of the Incremental Term Loans requested by
the Borrower, the Borrower may arrange for one or more banks or other financial
institutions (any such bank or other financial institution being called an “Additional
Lender”) to extend commitments to provide Incremental Term Loans in an
aggregate amount equal to the unsubscribed amount. Commitments in respect of
Incremental Term Loans shall become Commitments under this Agreement pursuant
to an amendment (an “Incremental Term Loan Amendment”) to this Agreement
and, as appropriate, the other Loan Documents, executed by the Borrower, each
Lender agreeing to provide such Commitment, if any, each Additional Lender, if
any, and the Administrative Agent. The Incremental Term Loan Amendment may,
without the consent of any other Lenders, effect such amendments to this
Agreement and the other Loan Documents as may be necessary or appropriate, in
the reasonable opinion of the Administrative Agent, to effect the provisions of
this Section. The effectiveness of any Incremental Term Loan Amendment shall be
subject to the satisfaction on the date thereof of each of the conditions set
forth in Section 6.2 (it being understood that all references to the date
of “any extension of credit” in such Section 6.2 shall be deemed to refer
to the effective date of such Incremental 

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Term Loan Amendment) and such other conditions as the parties thereto
shall agree. No Lender shall be obligated to provide any Incremental Term
Loans, unless it so agrees.

SECTION 3. AMOUNT
AND TERMS OF REVOLVING COMMITMENTS

3.1.          Revolving
Commitments. (a)   Subject to
the terms and conditions hereof, each Dollar Revolving Lender severally agrees
to make revolving credit loans denominated in Dollars (“Dollar Revolving
Loans”) to the Borrower from time to time during the Revolving Commitment
Period in an aggregate principal amount at any one time outstanding which, when
added to such Lender’s Dollar Revolving Percentage of the sum of (i) the
Dollar L/C Obligations then outstanding and (ii) the aggregate principal
amount of the Swingline Loans then outstanding, does not exceed the amount of
such Lender’s Dollar Revolving Commitment. Subject to the terms and conditions
hereof, each Multicurrency Revolving Lender severally agrees to make revolving
credit loans denominated in Dollars or a Foreign Currency (“Multicurrency
Revolving Loans”) to the Borrower from time to time during the Revolving
Commitment Period in an aggregate principal amount at any one time outstanding
which, when added to such Lender’s Multicurrency Revolving Percentage of the
Multicurrency L/C Obligations then outstanding, does not exceed the amount of
such Lender’s Multicurrency Revolving Commitment. Notwithstanding anything to
the contrary contained in this Agreement, in no event may Revolving Loans be
borrowed under a Revolving Facility if, after giving effect thereto (and to any
concurrent repayment or prepayment of Revolving Loans), the Total Revolving
Extensions of Credit under such Revolving Facility would exceed the Total
Revolving Commitments at such time under such Revolving Facility. During the
Revolving Commitment Period, the Borrower may use the Revolving Commitments by
borrowing, prepaying and reborrowing the Revolving Loans under the relevant
Revolving Facility, in whole or in part, all in accordance with the terms and
conditions hereof. The Revolving Loans may from time to time be Eurocurrency
Loans or Base Rate Loans, as determined by the Borrower and notified to the
Administrative Agent in accordance with Sections 3.2 and 4.3; provided
that Multicurrency Revolving Loans denominated in a Foreign Currency may only
be Eurocurrency Loans.

(b)  
The Borrower shall repay all outstanding Revolving Loans on the
Revolving Termination Date.

3.2.          Procedure
for Revolving Loan Borrowing. (a)  The Borrower may borrow under Section 3.1
during the Revolving Commitment Period on any Business Day, provided
that the Borrower shall give the Administrative Agent irrevocable notice (a “Borrowing
Request”)  by telephone (which notice
must be received by the Administrative Agent prior to 12:00 Noon, New York City
time (or, in the case of a Multicurrency Revolving Loan denominated in a
Foreign Currency, 12:00 Noon, London time), (a) three Business Days prior
to the requested Borrowing Date, in the case of Eurocurrency Loans, or (b) one
Business Day prior to the requested Borrowing Date, in the case of Base Rate
Loans), specifying (i) whether the requested borrowing is a borrowing
under the Dollar Revolving Facility or the Multicurrency Revolving Facility, provided
that Revolving Loans denominated in a Foreign Currency may only be borrowed
under the Multicurrency Revolving Facility, (ii) the amount and Type of
Revolving Loans to be borrowed, (iii) the requested Borrowing Date, (iv) in
the case of Eurocurrency Loans, the respective amounts of each such Type of
Revolving Loan, the respective currency 

 35
 

 

therefor and the respective lengths of the initial Interest Period
therefor, and (v) the location and number of the Borrower’s account to
which funds are to be distributed. Such telephonic request shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower.

(b)  
Each borrowing under a Revolving Facility shall be in an amount equal to
(x) in the case of Base Rate Loans, $1,000,000 or a whole multiple of
$100,000 in excess thereof (or, if the then aggregate Available Revolving
Commitments under the relevant Revolving Facility are less than $100,000, such
lesser amount), (y) in the case of Eurocurrency Loans denominated in
Dollars, $3,000,000 or a whole multiple of $500,000 in excess thereof or (z) in
the case of Multicurrency Revolving Loans denominated in a Foreign Currency,
the Foreign Currency Equivalent of $3,000,000 or a whole multiple of $1,000,000
in excess thereof; provided that the Swingline Lender may request, on
behalf of the Borrower, borrowings under the Dollar Revolving Commitments that
are Base Rate Loans in other amounts pursuant to Section 3.4.

(c)  
Upon receipt of any such Borrowing Request from the Borrower, the
Administrative Agent shall promptly notify each applicable Revolving Lender of
the requested currency and aggregate amount (in both the requested currency and
Dollars) of such borrowing. Each Revolving Lender will make the amount of its
pro rata share of each such borrowing, which shall be based on its Revolving
Percentage under the relevant Revolving Facility, as applicable, available to
the Administrative Agent for the account of the Borrower (i) in the case
of Dollars, at the Funding Office prior to 12:00 Noon, New York City time, on
the Borrowing Date requested by the Borrower in funds immediately available to
the Administrative Agent or (ii) in the case of a Foreign Currency, by
wire transfer prior to 11:00 A.M., London time, on the Borrowing Date
requested by the Borrower to the account of the Administrative Agent most
recently designated by it for such purposes by notice to the Multicurrency
Revolving Lenders in immediately available funds. Such borrowing will then be
made available to the Borrower by the Administrative Agent crediting the
account of the Borrower, (i) in the case of Dollars, on the books of
such Funding Office, or (ii) in the case of a Foreign Currency, in
accordance with instructions provided by the Borrower, in each case with the
aggregate of the amounts made available to the Administrative Agent by the
Revolving Lenders and in like funds as received by the Administrative Agent.

3.3.          Swingline
Commitment. (a)  Subject to the terms and conditions hereof, the
Swingline Lender agrees to make a portion of the credit otherwise available to
the Borrower under the Dollar Revolving Commitments from time to time during
the Revolving Commitment Period by making swing line loans denominated in
Dollars (“Swingline Loans”) to the Borrower; provided that (i) the
aggregate principal amount of Swingline Loans outstanding at any time shall not
exceed the Swingline Commitment then in effect (notwithstanding that the
Swingline Loans outstanding at any time, when aggregated with the Swingline
Lender’s other outstanding Dollar Revolving Extensions of Credit hereunder, may
exceed the Swingline Commitment then in effect), (ii) the Borrower shall
not request, and the Swingline Lender shall not make, any Swingline Loan if,
after giving effect to the making of such Swingline Loan, the aggregate 

 36
 

 

amount of the Available Revolving Commitments under the Dollar
Revolving Facility would be less than zero and (iii) the Swingline Lender
shall not be required to make a Swingline Loan to refinance an existing
Swingline Loan. During the Revolving Commitment Period, the Borrower may use
the Swingline Commitment by borrowing, repaying and reborrowing, all in
accordance with the terms and conditions hereof. Swingline Loans shall be Base
Rate Loans only.

(b)  The Borrower shall repay to the
Swingline Lender the then unpaid principal amount of each Swingline Loan on the
earlier of the Revolving Termination Date and the 30th day after such Swingline
Loan is made; provided that, during each calendar month, there shall be
at least two consecutive Business Days during which the outstanding balance of
the Swingline Loans shall be zero.

3.4.          Procedure
for Swingline Borrowing; Refunding of Swingline Loans. (a)   Whenever the Borrower desires that the
Swingline Lender make Swingline Loans it shall give the Swingline Lender
irrevocable telephonic notice confirmed promptly in writing (which telephonic
notice must be received by the Swingline Lender not later than 1:00 P.M.,
New York City time, on the proposed Borrowing Date), specifying (i) the
amount to be borrowed and (ii) the requested Borrowing Date (which shall
be a Business Day during the Revolving Commitment Period). Each borrowing under
the Swingline Commitment shall be in an amount equal to $250,000 or a whole
multiple of $100,000 in excess thereof. Not later than 3:00 P.M., New York
City time, on the Borrowing Date specified in a notice in respect of Swingline
Loans, the Swingline Lender shall make available to the Administrative Agent at
the Funding Office an amount in immediately available funds equal to the amount
of the Swingline Loan to be made by the Swingline Lender. The Administrative
Agent shall make the proceeds of such Swingline Loan available to the Borrower
on such Borrowing Date by depositing such proceeds in the account of the Borrower
with the Administrative Agent on such Borrowing Date in immediately available
funds.

(b)  
The Swingline Lender, at any time and from time to time in its sole and
absolute discretion may, on behalf of the Borrower (which hereby irrevocably
directs the Swingline Lender to act on its behalf), on one Business Day’s
notice given by the Swingline Lender no later than 12:00 Noon, New York
City time, request each Dollar Revolving Lender to make, and each Dollar
Revolving Lender hereby agrees to make, a Dollar Revolving Loan, in an amount
equal to such Lender’s Dollar Revolving Percentage of the aggregate amount of
the Swingline Loans (the “Refunded Swingline Loans”) outstanding on the
date of such notice, to repay the Swingline Lender. Each Dollar Revolving Lender
shall make the amount of such Dollar Revolving Loan available to the
Administrative Agent at the Funding Office in immediately available funds, not
later than 10:00 A.M., New York City time, one Business Day after the date
of such notice. The proceeds of such Dollar Revolving Loans shall be
immediately made available by the Administrative Agent to the Swingline Lender
for application by the Swingline Lender to the repayment of the Refunded
Swingline Loans. The Borrower irrevocably authorizes the Swingline Lender to
charge the Borrower’s accounts with the Administrative Agent (up to the amount
available in each such account) in order to immediately pay the amount of such
Refunded Swingline Loans to the extent amounts received from the Dollar
Revolving Lenders are not sufficient to repay in full such Refunded Swingline
Loans.

 37

 

 

(c)  
If prior to the time a Dollar Revolving Loan would have otherwise been
made pursuant to Section 3.4(b), one of the events described in Section 9(f) shall
have occurred and be continuing with respect to the Borrower or if for any
other reason, as determined by the Swingline Lender in its sole discretion,
Dollar Revolving Loans may not be made as contemplated by Section 3.4(b),
each Dollar Revolving Lender shall, on the date such Dollar Revolving Loan was
to have been made pursuant to the notice referred to in Section 3.4(b) (the
“Refunding Date”), purchase for cash an undivided participating interest
in the then outstanding Swingline Loans by paying to the Swingline Lender an
amount (the “Swingline Participation Amount”) equal to (i) such
Lender’s Dollar Revolving Percentage times (ii) the sum of the
aggregate principal amount of Swingline Loans then outstanding that were to
have been repaid with such Dollar Revolving Loans.

(d)  
Whenever, at any time after the Swingline Lender has received from any
Dollar Revolving Lender such Lender’s Swingline Participation Amount, the
Swingline Lender receives any payment on account of the Swingline Loans, the
Swingline Lender will distribute to such Lender its Swingline Participation
Amount (appropriately adjusted, in the case of interest payments, to reflect
the period of time during which such Lender’s participating interest was
outstanding and funded and, in the case of principal and interest payments, to
reflect such Lender’s pro  rata portion of such payment if such
payment is not sufficient to pay the principal of and interest on all Swingline
Loans then due); provided, however, that in the event that such
payment received by the Swingline Lender is required to be returned, such
Dollar Revolving Lender will return to the Swingline Lender any portion thereof
previously distributed to it by the Swingline Lender.

(e)  
Each Dollar Revolving Lender’s obligation to make the Loans referred to
in Section 3.4(b) and to purchase participating interests pursuant to
Section 3.4(c) shall be absolute and unconditional and shall not be
affected by any circumstance, including (i) any setoff, counterclaim,
recoupment, defense or other right that such Dollar Revolving Lender or the
Borrower may have against the Swingline Lender, the Borrower or any other
Person for any reason whatsoever; (ii) the occurrence or continuance of a
Default or an Event of Default or the failure to satisfy any of the other
conditions specified in Section 6; (iii) any adverse change in the
condition (financial or otherwise) of the Borrower; (iv) any breach of
this Agreement or any other Loan Document by the Borrower, any other Loan Party
or any other Revolving Lender; or (v) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.

3.5.          Commitment
Fees, etc. (a)   The Borrower
agrees to pay to the Administrative Agent for the account of each Revolving
Lender a commitment fee for the period from and including the Effective Date to
the last day of the Revolving Commitment Period, computed at the Commitment Fee
Rate on the average daily amount of the Available Revolving Commitment of such
Lender under each Revolving Facility during the period for which payment is
made, payable quarterly in arrears on each Fee Payment Date, commencing on the
first of such dates to occur after the date hereof.

 38
 

 

 

(b)  
The Borrower agrees to pay to the Administrative Agent the fees in the
amounts and on the dates previously agreed to in writing by the Borrower and
the Administrative Agent.

3.6.          Termination
or Reduction of Revolving Commitments. The Borrower shall have the right,
upon not less than three Business Days’ notice to the Administrative Agent, to
terminate the Revolving Commitments under either Revolving Facility or, from
time to time, to reduce the amount of the Revolving Commitments under either
Revolving Facility; provided that no such termination or reduction of
Revolving Commitments under either Revolving Facility shall be permitted if,
after giving effect thereto and to any prepayments of the Revolving Loans or
Swingline Loans made on the effective date thereof, the Total Revolving
Extensions of Credit under such Revolving Facility would exceed the Total
Revolving Commitments under such Revolving Facility. Any such reduction shall
be in an amount equal to $1,000,000, or a whole multiple thereof, and shall
reduce permanently the Revolving Commitments under the relevant Revolving
Facility then in effect.

3.7.          L/C
Commitment. (a)   Subject to the
terms and conditions hereof, each Issuing Lender (in reliance on the agreements
set forth in Section 3.10(a) of the Revolving Lenders under the
relevant Revolving Facility), agrees to issue letters of credit under the
Dollar Revolving Facility (“Dollar Letters of Credit”) and letters of credit
under the Multicurrency Revolving Facility (“Multicurrency Letters of Credit”),
in each case for the account of the Borrower on any Business Day during the
Revolving Commitment Period in such form as may be approved from time to time
by such Issuing Lender; provided that no Issuing Lender shall have any
obligation to issue any Letter of Credit under a Revolving Facility if, after
giving effect to such issuance, (i) the total L/C Obligations would exceed
the L/C Commitment or (ii) the aggregate amount of the Available Revolving
Commitments under such Revolving Facility would be less than zero. Each Dollar
Letter of Credit shall be denominated in Dollars and each Multicurrency Letter
of Credit shall be denominated in Dollars or a Foreign Currency. Each Letter of
Credit shall expire no later than the earlier of (x) the first anniversary
of its date of issuance and (y) the date that is five Business Days prior
to the Revolving Termination Date (the “Required Expiry Date”); provided
that any Letter of Credit with a one-year term may provide for the renewal
thereof for additional one-year periods (which shall in no event extend beyond
the Required Expiry Date). An Issuing Lender may, in its sole discretion,
extend a Letter of Credit beyond the Required Expiry Date, provided that
(i) each L/C Participant’s interest in the Issuing Lender’s obligations
and rights under and in respect of such Letter of Credit shall terminate at the
close of business on the Required Expiry Date (except with respect to demands
for drawings thereunder submitted prior to that time) and (ii) such
Issuing Lender may, as condition to extending such Letter of Credit, require
additional fees or collateral.

(b)  
No Issuing Lender shall at any time be obligated to issue any Letter of
Credit hereunder if such issuance would conflict with, or cause such Issuing
Lender or any L/C Participant to exceed any limits imposed by, any applicable
Requirement of Law.

(c)  
The Existing Letters of Credit outstanding on the Effective Date shall
constitute Letters of Credit hereunder.

 39
 

 

 

3.8.          Procedure
for Issuance of Letters of Credit. The Borrower may from time to time
request that an Issuing Lender issue a Dollar Letter of Credit or a
Multicurrency Letter of Credit by delivering to such Issuing Lender at its
address for notices specified herein an Application therefor, completed to the
satisfaction of such Issuing Lender, and such other certificates, documents and
other papers and information as such Issuing Lender may request. Upon receipt
of any Application, an Issuing Lender will notify the Administrative Agent of (i) whether
the Application is with respect to a Dollar Letter of Credit or Multicurrency
Letter of Credit and (ii) the amount, currency, requested expiration and
beneficiary of the requested Letter of Credit. Upon receipt of confirmation
from the Administrative Agent that after giving effect to the requested
issuance, the Available Revolving Commitments under the relevant Revolving
Facility would not be less than zero, such Issuing Lender will process such
Application and the certificates, documents and other papers and information
delivered to it in connection therewith in accordance with its customary
procedures and shall promptly issue the Letter of Credit requested thereby (but
in no event shall such Issuing Lender be required to issue any Letter of Credit
earlier than three Business Days after its receipt of the Application therefor
and all such other certificates, documents and other papers and information
relating thereto) by issuing the original of such Letter of Credit to the
beneficiary thereof or as otherwise may be agreed to by such Issuing Lender and
the Borrower. Each Issuing Lender shall furnish a copy of such Letter of Credit
to the Borrower (with a copy to the Administrative Agent) promptly following
the issuance thereof. Each Issuing Lender shall promptly furnish to the
Administrative Agent, which shall in turn promptly furnish to the Lenders,
notice of the issuance of each Letter of Credit issued by such Issuing Lender
(including the amount and currency thereof).

3.9.          Fees
and Other Charges. (a)   The
Borrower will pay a fee on all outstanding Letters of Credit under each
Revolving Facility (determined based upon Dollar Equivalents in the case of
Multicurrency Letters of Credit issued in Foreign Currencies) at a per annum
rate equal to the Applicable Margin then in effect with respect to Eurocurrency
Loans under such Revolving Facility, shared ratably among the Revolving Lenders
under such Revolving Facility. Such fees shall be payable quarterly in arrears
on each L/C Fee Payment Date after the issuance date. In addition, the Borrower
shall pay to the relevant Issuing Lender for its own account a fronting fee on
the undrawn and unexpired amount of each Letter of Credit as agreed by the
Borrower and the Issuing Lender, payable quarterly in arrears on each L/C Fee
Payment Date after the issuance date.

(b)  
In addition to the foregoing fees, the Borrower shall pay or reimburse
each Issuing Lender for such normal and customary costs and expenses as are
incurred or charged by such Issuing Lender in issuing, negotiating, effecting
payment under, amending or otherwise administering any Letter of Credit to the
extent that the fees and expenses associated with the issuance of such Letter
of Credit exceed the fronting fee therefor as specified in Section 3.9(a).

3.10.        L/C
Participations. (a)   Each
Issuing Lender irrevocably agrees to grant and hereby grants to each L/C
Participant, and, to induce such Issuing Lender to issue Letters of Credit hereunder,
each L/C Participant irrevocably agrees to accept and purchase and hereby
accepts and purchases from such Issuing Lender, on the terms and conditions set
forth below, for such L/C Participant’s own account and risk an undivided
interest equal to (i) such L/C

 40
 

 

 

Participant’s Dollar Revolving Percentage in each
Issuing Lender’s obligations and rights under and in respect of each Dollar
Letter of Credit issued by such Issuing Lender hereunder and the amount of each
draft paid by such Issuing Lender thereunder and (ii) such L/C Participant’s
Multicurrency Revolving Percentage in each Issuing Lender’s obligations and
rights under and in respect of each Multicurrency Letter of Credit issued by
such Issuing Lender hereunder and the amount of each draft paid by such Issuing
Lender thereunder. Each L/C Participant in respect of a Letter of Credit
unconditionally and irrevocably agrees with the Issuing Lender in respect of
such Letter of Credit that, if a draft is paid under such Letter of Credit for
which such Issuing Lender is not reimbursed in full by the Borrower in
accordance with the terms of this Agreement, such L/C Participant shall pay to
the Administrative Agent upon demand of such Issuing Lender an amount equal to
such L/C Participant’s Revolving Percentage under the relevant Revolving
Facility of the amount of such draft, or any part thereof, that is not so
reimbursed; provided that the related Reimbursement Obligation with
respect to a Multicurrency Letter of Credit denominated in a Foreign Currency
may be converted to Dollars pursuant to Section 3.11. The Administrative
Agent shall promptly forward such amounts to the relevant Issuing Lender.

(b)  
If any amount required to be paid by any L/C Participant to the
Administrative Agent for the account of an Issuing Lender pursuant to Section 3.10(a) in
respect of any unreimbursed portion of any payment made by such Issuing Lender
under any Letter of Credit is paid to the Administrative Agent for the account
of such Issuing Lender within three Business Days after the date such payment
is due, such L/C Participant shall pay to the Administrative Agent for the
account of such Issuing Lender on demand an amount equal to the product of (i) such
amount times (ii) the daily average Federal Funds Effective Rate during
the period from and including the date such payment is required to the date on
which such payment is immediately available to such Issuing Lender times
(iii) a fraction the numerator of which is the number of days that elapse
during such period and the denominator of which is 360. If any such amount
required to be paid by any L/C Participant pursuant to Section 3.10(a) is
not made available to the Administrative Agent for the account of the relevant
Issuing Lender by such L/C Participant within three Business Days after the
date such payment is due, such Issuing Lender shall be entitled to recover from
such L/C Participant, on demand, such amount with interest thereon calculated
from such due date at the rate per annum applicable to Base Rate Loans under
the relevant Revolving Facility. A certificate of such Issuing Lender submitted
to any L/C Participant with respect to any amounts owing under this Section shall
be conclusive in the absence of manifest error.

(c)  
Whenever, at any time after an Issuing Lender has made payment under any
Letter of Credit and has received from any L/C Participant its pro  rata
share of such payment in accordance with Section 3.10(a), the
Administrative Agent or such Issuing Lender receives any payment related to
such Letter of Credit (whether directly from the Borrower or otherwise,
including proceeds of Collateral applied thereto by such Issuing Lender), or
any payment of interest on account thereof, the Administrative Agent or such
Issuing Lender, as the case may be, will distribute to such L/C Participant its
pro  rata share thereof; provided, however, that in
the event that any such payment received by Administrative Agent or such
Issuing Lender, as the case may be, shall be required to be returned by the
Administrative Agent or such Issuing Lender, such L/C Participant shall return
to the Administrative Agent for the account of such

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Issuing Lender the portion thereof previously
distributed by the Administrative Agent or such Issuing Lender, as the case may
be, to it.

(d)  
Each L/C Participant’s obligation to purchase participating interests
pursuant to Section 3.10(b) shall be absolute and unconditional and
shall not be affected by any circumstance, including (i) any setoff,
counterclaim, recoupment, defense or other right that such L/C Participant or
the Borrower may have against any Issuing Lender, the Borrower or any other
Person for any reason whatsoever; (ii) the occurrence or continuance of a
Default or an Event of Default or the failure to satisfy any of the other
conditions specified in Section 6; (iii) any adverse change in the
condition (financial or otherwise) of the Borrower; (iv) any breach of
this Agreement or any other Loan Document by the Borrower, any other Loan Party
or any other L/C Participant; or (v) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.

3.11.        Reimbursement
Obligation of the Borrower. The Borrower agrees to reimburse each Issuing
Lender on the Business Day next succeeding the Business Day on which such
Issuing Lender notifies the Borrower of the date and amount of a draft
presented under any Letter of Credit and paid by such Issuing Lender for the
amount of such draft so paid and any taxes, fees, charges or other reasonable
costs or expenses incurred by such Issuing Lender in connection with such
payment. Each such payment shall be made to the relevant Issuing Lender in
Dollars and in immediately available funds, provided that (a) the
Borrower may, at its option, elect by notice to such Issuing Lender immediately
following receipt of notice of such draft, to reimburse a draft paid in a
Foreign Currency in the same Foreign Currency and (b) if the Borrower does
not make such election, or if (notwithstanding such election) the Borrower does
not in fact reimburse any such draft made in a Foreign Currency on or prior to
the date required pursuant to the first sentence of this Section 3.11,
then such Issuing Lender shall convert such Reimbursement Obligation into
Dollars at the rate of exchange then available to such Issuing Lender in the
interbank market where its foreign currency exchange operations in respect of
such Foreign Currency are then being conducted and the Borrower shall
thereafter be required to reimburse such Issuing Lender in Dollars for such
Reimbursement Obligation (in the amount so converted). Interest shall be
payable on any such amounts denominated in Dollars from the date on which the
relevant draft is paid until the relevant Issuing Lender receives payment in
full at the rate set forth in (i) until the Business Day next succeeding
the date of the relevant notice, Section 4.5(b) with respect to Base
Rate Loans under the relevant Revolving Facility and (ii) thereafter, Section 4.5(c).
Interest shall be payable on any such amounts denominated in a Foreign Currency
from the date on which the relevant draft is paid until the relevant Issuing
Lender receives payment in full or conversion to Dollars as provided herein (i) until
the Business Day next succeeding the date of the relevant notice, at the rate
determined by the relevant Issuing Lender as its cost of funding such payment
plus the Applicable Margin with respect to Eurocurrency Loans under the
relevant Revolving Facility and (ii) thereafter, the rate set forth in Section 4.5(c).
Each drawing under any Dollar Letter of Credit shall (unless an event of the
type described in clause (i) or (ii) of Section 9(f) shall
have occurred and be continuing with respect to the Borrower, in which case the
procedures specified in Section 3.10 for funding by L/C Participants shall
apply) constitute a request by the Borrower to the Administrative Agent for a
borrowing pursuant to Section 3.2 of Base Rate Loans under the Dollar
Revolving Facility (or, at

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the option of the Administrative Agent and the
Swingline Lender in their sole discretion, a borrowing pursuant to Section 3.4
of Swingline Loans) in the amount of such drawing except that, in such event,
Borrower is not deemed to have given any representations and warranties
pursuant to Section 6.2. Except in the case of a drawing denominated in a
Foreign Currency that the Borrower elects to reimburse, and in fact reimburses,
in such Foreign Currency as provided above, each drawing under any
Multicurrency Letter of Credit shall (unless an event of the type described in
clause (i) or (ii) of Section 9(f) shall have occurred and
be continuing with respect to the Borrower, in which case the procedures
specified in Section 3.10 for funding by L/C Participants shall apply),
constitute a request by the Borrower to the Administrative Agent for a
borrowing pursuant to Section 3.2 of Base Rate Loans under the
Multicurrency Revolving Facility denominated in Dollars in the amount of such
drawing (or, in the case of a drawing denominated in a Foreign Currency, the
amount in Dollars into which the Reimbursement Obligation was converted) except
that, in either such event, the Borrower is not deemed to have given any
representations and warranties pursuant to Section 6.2. The Borrowing Date
with respect to such borrowing shall be the first date on which a borrowing of
Revolving Loans (or, if applicable, Swingline Loans) could be made pursuant to Section 3.2
(or, if applicable, Section 3.4), if the Administrative Agent had received
a notice of such borrowing at the time the Administrative Agent receives notice
from such Issuing Lender of such drawing under such Letter of Credit.

3.12.        Obligations
Absolute. The Borrower’s obligations under Section 3.11 shall be
absolute and unconditional under any and all circumstances and irrespective of
any setoff, counterclaim or defense to payment that the Borrower may have or
have had against any Issuing Lender, any beneficiary of a Letter of Credit or
any other Person. The Borrower also agrees with each Issuing Lender that such
Issuing Lender not shall be responsible for, and the Borrower’s Reimbursement
Obligations under Section 3.11 shall not be affected by, among other
things, the validity or genuineness of documents or of any endorsements
thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, or any dispute between or among the Borrower and any
beneficiary of any Letter of Credit or any other party to which such Letter of
Credit may be transferred or any claims whatsoever of the Borrower against any
beneficiary of such Letter of Credit or any such transferee. No Issuing Lender
shall be liable for any error, omission, interruption or delay in transmission,
dispatch or delivery of any message or advice, however transmitted, in
connection with any Letter of Credit, except for errors or omissions found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of such Issuing Lender.
The Borrower agrees that any action taken or omitted by an Issuing Lender under
or in connection with any Letter of Credit or the related drafts or documents,
if done in the absence of gross negligence or willful misconduct and in
accordance with the standards of care specified in the Uniform Commercial Code
of the State of New York and UCP 500, shall be binding on the Borrower and
shall not result in any liability of such Issuing Lender to the Borrower.

3.13.        Letter
of Credit Payments. If any draft shall be presented for payment under any
Letter of Credit, the relevant Issuing Lender shall promptly notify the
Borrower of the date and amount thereof. The responsibility of the relevant
Issuing Lender to the Borrower in connection with any draft presented for
payment under any Letter of Credit issued by such

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Issuing Lender shall, in addition to any payment
obligation expressly provided for in such Letter of Credit, be limited to
determining in compliance with UCP 500 that the documents (including each
draft) delivered under such Letter of Credit in connection with such
presentment are substantially in conformity with the requirements of such
Letter of Credit.

3.14.        Applications.
To the extent that any provision of any Application related to any Letter of
Credit is inconsistent with the provisions of this Section 3, the
provisions of this Section 3 shall apply.

SECTION 4.
 GENERAL PROVISIONS APPLICABLE TO LOANS
AND LETTERS OF CREDIT

4.1.          Optional
Prepayments. (a)   The Borrower
may at any time and from time to time prepay the Loans (other than Multicurrency
Revolving Loans denominated in a Foreign Currency) under the relevant Facility,
in whole or in part, without premium or penalty, upon irrevocable notice
delivered to the Administrative Agent at least three Business Days prior
thereto in the case of Eurocurrency Loans denominated in Dollars and at least
one Business Day prior thereto in the case of Base Rate Loans, which notice
shall specify the date and amount of prepayment and whether the prepayment is
of Eurocurrency Loans denominated in Dollars or Base Rate Loans; provided
that (i) in the event of any prepayment of Term Loans made at a time when
Term Loans of both Classes remain outstanding, the Borrower shall select Term
Loans to be prepaid so that the aggregate amount of such prepayment is allocated
between the Tranche C Term Loans and the Tranche D Term Loans pro
rata based on the aggregate principal amount of outstanding Term Loans of each
such Class, and (ii) if a Eurocurrency Loan denominated in Dollars is
prepaid on any day other than the last day of the Interest Period applicable
thereto, the Borrower shall also pay any amounts owing pursuant to Section 4.11.
Upon receipt of any such notice the Administrative Agent shall promptly notify
each relevant Lender thereof. If any such notice is given, the amount specified
in such notice shall be due and payable on the date specified therein, together
with (except in the case of Dollar Revolving Loans that are Base Rate Loans and
are prepaid prior to the end of the Revolving Commitment Period) accrued
interest to such date on the amount prepaid. Partial prepayments of Term Loans
and Revolving Loans denominated in Dollars shall be in an aggregate principal
amount of $1,000,000 or a whole multiple thereof. Partial prepayments of
Swingline Loans shall be in an aggregate principal amount of $100,000 or a
whole multiple thereof.

(b)  
The Borrower may at any time and from time to time prepay Multicurrency
Revolving Loans denominated in a Foreign Currency, in whole or in part, without
premium or penalty except as specified in Section 4.11, upon irrevocable
notice (which notice must be received by the Administrative Agent prior to
11:00 A.M., New York City time, three Business Days before the date of
prepayment) specifying the date and amount of prepayment. If any such notice is
given, the amount specified in such notice shall be due and payable on the date
specified therein, together with any amounts payable pursuant to Section 4.11
and accrued interest to such date on the amount prepaid. Partial prepayments of
Multicurrency Revolving Loans denominated in a Foreign Currency shall be in a
minimum principal amount equal to the Foreign Currency Equivalent of $1,000,000
in the relevant Foreign Currency or a multiple of the Foreign Currency
Equivalent of $100,000 in the relevant Foreign Currency in excess thereof.

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4.2.          Mandatory
Prepayments. (a)  
[Intentionally Omitted.]

(b)  
If any Indebtedness shall be incurred by any Group Member (other than
Excluded Indebtedness), an amount equal to 100% of the Net Cash Proceeds
thereof shall be applied no later than one Business Day following the date of
such incurrence toward the prepayment of the Term Loans as set forth in Section 4.2(d).

(c)  
If on any date any Group Member shall receive Net Cash Proceeds from any
Asset Sale or Recovery Event then, unless a Reinvestment Notice shall be
delivered in respect thereof, such Net Cash Proceeds shall be applied no later
than one Business Day following such date toward the prepayment of the Term
Loans as set forth in Section 4.2(d); provided, that,
notwithstanding the foregoing, (i) the aggregate Net Cash Proceeds of
Asset Sales and Recovery Events that may be excluded from the foregoing
requirement pursuant to a Reinvestment Notice shall not exceed $80,000,000 in
any fiscal year of the Borrower and (ii) on each Reinvestment Prepayment
Date, an amount equal to the Reinvestment Prepayment Amount with respect to the
relevant Reinvestment Event shall be applied toward the prepayment of the Term
Loans as set forth in Section 4.2(d).

(d)  
Amounts to be applied in connection with prepayments made pursuant to Section 4.2
shall be applied to the prepayment of the Term Loans of the relevant Class in
accordance with Section 4.8(b); provided that, in the event of any
prepayment of Term Loans made at a time when Term Loans of both Classes remain
outstanding, the Borrower shall select Term Loans to be prepaid so that the
aggregate amount of such prepayment is allocated between the Tranche C Term
Loans and the Tranche D Term Loans pro rata based on the aggregate
principal amount of outstanding Loans of each such Class. The application of
any prepayment pursuant to Section 4.2 shall be made, first, to
Base Rate Loans under the relevant Facility and, second, to Eurocurrency
Loans under such Facility. Each prepayment of the Loans under Section 4.2
shall be accompanied by accrued interest to the date of such prepayment on the
amount prepaid.

(e)  
If, on any Calculation Date, the Total Multicurrency Revolving
Extensions of Credit exceed an amount equal to 105% of the Total Multicurrency
Revolving Commitments on such date, the Borrower shall, without notice or
demand, immediately repay such of the outstanding Multicurrency Revolving Loans
in an aggregate principal amount such that, after giving effect thereto, the
Total Multicurrency Revolving Extensions of Credit do not exceed the Total
Multicurrency Revolving Commitments, together with interest accrued to the date
of such payment or prepayment on the principal so prepaid if required hereby
and any amounts payable under Section 4.11 in connection therewith. After
prepaying any Multicurrency Revolving Loans denominated in Dollars, the
Borrower may in lieu of prepaying Multicurrency Revolving Loans denominated in
a Foreign Currency in order to comply with this paragraph deposit amounts in
the relevant Foreign Currency or Foreign Currencies in a Cash Collateral
Account in accordance with the next succeeding sentence equal to the aggregate
principal amount of Multicurrency Revolving Loans denominated in a Foreign
Currency required to be prepaid. To the extent that after giving effect to any
prepayment of Multicurrency Revolving Loans required by this paragraph, the
Total Multicurrency Revolving Extensions of Credit at such time exceed the
Total Multicurrency Revolving Commitments at such time, the Borrower shall,
without

 45
 

 

 

notice or demand, immediately deposit in a Cash
Collateral Account upon terms reasonably satisfactory to the Administrative
Agent an amount equal to the amount by which Total Multicurrency Revolving
Extensions of Credit exceed the Total Multicurrency Revolving Commitments. The
Administrative Agent shall apply any cash deposited in the Cash Collateral
Account (to the extent thereof) to pay any Reimbursement Obligations which are
or become due thereafter and/or to repay Multicurrency Revolving Loans
denominated in a Foreign Currency at the end of the Interest Periods therefor; provided
that (x) the Administrative Agent shall release to the Borrower from time
to time such portion of the amount on deposit in the Cash Collateral Account to
the extent such amount is not required to be so deposited in order for the
Borrower to be in compliance with this paragraph and (y) the
Administrative Agent may so apply such cash at any time after the occurrence and
during the continuation of an Event of Default. “Cash Collateral Account”
means an account specifically established by the Borrower with the
Administrative Agent for purposes of this Section 4.2 and hereby pledged
to the Administrative Agent and over which the Administrative Agent shall have
exclusive dominion and control, including the right of withdrawal for
application in accordance with this Section 4.2.

(f)  
If the Global Draw Acquisition is not consummated on or prior to the
date that is 30 days after the date that the Tranche C Term Loans are made,
then the Borrower shall prepay all outstanding Tranche C Term Loans on the next
Business Day. If any prepayment is required to be made pursuant to this Section 4.2(f),
such prepayment shall be applied solely in respect of Tranche C Term Loans, and
the proviso to Section 4.2(d) shall not apply.

4.3.          Conversion
and Continuation Options. (a)  
The Borrower may elect from time to time to convert Eurocurrency Loans
denominated in Dollars to Base Rate Loans by giving the Administrative Agent at
least two Business Days’ prior irrevocable notice of such election, provided
that any such conversion of Eurocurrency Loans denominated in Dollars may only
be made on the last day of an Interest Period with respect thereto. The
Borrower may elect from time to time to convert Base Rate Loans to Eurocurrency
Loans denominated in Dollars by giving the Administrative Agent at least three
Business Days’ prior irrevocable notice of such election (which notice shall
specify the length of the initial Interest Period therefor), provided
that no Base Rate Loan under a particular Facility may be converted into a
Eurocurrency Loan denominated in Dollars when any Event of Default has occurred
and is continuing and the Administrative Agent or the Majority Facility Lenders
in respect of such Facility have determined in its or their sole discretion not
to permit such conversions. Upon receipt of any such notice the Administrative
Agent shall promptly notify each relevant Lender thereof. Notwithstanding the
foregoing, the Borrower may not elect to convert the currency in which any Loan
is denominated.

(b)  
Any Eurocurrency Loan may be continued as such upon the expiration of
the then current Interest Period with respect thereto by the Borrower giving
irrevocable notice to the Administrative Agent, in accordance with the
applicable provisions of the term “Interest Period” set forth in Section 1.1,
of the length of the next Interest Period to be applicable to such Loans, provided
that no Eurocurrency Loan denominated in Dollars under a particular Facility
may be continued as such when any Event of Default has occurred and is
continuing and the Administrative Agent has or the Majority Facility Lenders in
respect of such Facility have

 46
 

 

 

determined in its or their sole discretion not to
permit such continuations, and provided, further, that if the
Borrower shall fail to give any required notice as described above in this
paragraph or if such continuation is not permitted pursuant to the preceding proviso
such Eurocurrency Loans denominated in Dollars shall be automatically converted
to Base Rate Loans on the last day of such then expiring Interest Period and,
if the Borrower shall fail to give such notice of continuation of a
Multicurrency Revolving Loan denominated in a Foreign Currency, such
Multicurrency Revolving Loan denominated in a Foreign Currency shall be
automatically continued for an Interest Period of one month. Upon receipt of
any such notice the Administrative Agent shall promptly notify each relevant
Lender thereof.

4.4.          Limitations
on Eurocurrency Tranches. Notwithstanding anything to the contrary in this
Agreement, all borrowings, conversions and continuations of Eurocurrency Loans
hereunder and all selections of Interest Periods hereunder shall be in such
amounts and be made pursuant to such elections so that, (a) after giving
effect thereto, the aggregate principal amount of the Eurocurrency Loans
comprising each Eurocurrency Tranche shall be equal to $3,000,000 or a whole
multiple of $1,000,000 in excess thereof and (b) no more than fifteen
Eurocurrency Tranches shall be outstanding at any one time.

4.5.          Interest
Rates and Payment Dates. (a)  
Each Eurocurrency Loan shall bear interest for each day during each
Interest Period with respect thereto at a rate per annum equal to the
Eurocurrency Rate determined for such day plus the Applicable Margin.

(b)  
Each Base Rate Loan shall bear interest at a rate per annum equal to the
Base Rate plus the Applicable Margin.

(c)  (i) If all or a portion of the
principal amount of any Loan or Reimbursement Obligation shall not be paid when
due (whether at the stated maturity, by acceleration or otherwise), such
overdue amount shall bear interest at a rate per annum equal to (x) in the
case of the Loans, the rate that would otherwise be applicable thereto pursuant
to the foregoing provisions of this Section plus 2% or (y) in
the case of Reimbursement Obligations, the rate applicable to Base Rate Loans
under the relevant Revolving Facility plus 2%, and (ii) if all or a
portion of any interest payable on any Loan or Reimbursement Obligation or any
fee or other amount payable hereunder shall not be paid when due (whether at
the stated maturity, by acceleration or otherwise), such overdue amount shall
bear interest at a rate per annum equal to (A) the rate then applicable to
Base Rate Loans under the relevant Facility plus 2% (or, in the case of
any such other amounts that do not relate to a particular Facility, the rate
then applicable to Base Rate Loans under the relevant Revolving Facility plus
2%), in the case of amounts that are owing in Dollars, or (B)(I) the
Eurocurrency Rate in respect of the relevant Foreign Currency plus (II) 2%,
in the case of amounts owing that are denominated in Foreign Currencies, in
each case, with respect to clauses (i) and (ii) above, from the
date of such non-payment until such amount is paid in full (after as well
as before judgment).

(d)  
Interest shall be payable in arrears on each Interest Payment Date, provided
that interest accruing pursuant to paragraph (c) of this Section shall
be payable from time to time on demand.

 

 47

 

 

4.6.          Computation
of Interest and Fees. (a)  
Interest and fees payable pursuant hereto shall be calculated on the
basis of a 360-day year for the actual days elapsed, except that, with
respect to Base Rate Loans the rate of interest on which is calculated on the
basis of the Prime Rate, the interest thereon shall be calculated on the basis
of a 365- (or 366-, as the case may be) day year for the actual
days elapsed. The Administrative Agent shall as soon as practicable notify the
Borrower and the relevant Lenders of each determination of a Eurocurrency Rate.
Any change in the interest rate on a Loan resulting from a change in the Base
Rate or the Eurocurrency Reserve Requirements shall become effective as of the
opening of business on the day on which such change becomes effective. The
Administrative Agent shall as soon as practicable notify the Borrower and the
relevant Lenders of the effective date and the amount of each such change in
interest rate.

(b)  
Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding on
the Borrower and the Lenders in the absence of manifest error. The
Administrative Agent shall, at the request of the Borrower, deliver to the
Borrower a statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to Section 4.5(a).

4.7.          Inability
to Determine Interest Rate. If prior to the first day of any Interest
Period:

(a)           the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower absent manifest error) that, by reason of circumstances affecting the
relevant market, adequate and reasonable means do not exist for ascertaining
the Eurocurrency Rate for such Interest Period in respect of Loans denominated
in Dollars, or

(b)           the Administrative Agent shall have
received notice from the Majority Facility Lenders in respect of the relevant
Facility that the Eurocurrency Rate determined or to be determined for such
Interest Period will not adequately and fairly reflect the cost to such Lenders
(as conclusively certified by such Lenders) of making or maintaining their
affected Loans during such Interest Period, or

(c)           the Administrative Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower, absent manifest error) that, by reason of circumstances affecting the
relevant market, adequate and reasonable means do not exist for ascertaining
the Eurocurrency Rate for such Interest Period in respect of any Foreign
Currency (any such Foreign Currency is referred to as an “Affected Foreign
Currency”),

the Administrative Agent shall give telecopy or
telephonic notice thereof to the Borrower and the relevant Lenders as soon as
practicable thereafter. If such notice is given (x) pursuant to
clause (a) or (b) of this Section 4.7 in respect of
Eurocurrency Loans denominated in Dollars, then (i) any Eurocurrency Loans
denominated in Dollars under the relevant Facility requested to be made on the
first day of such Interest Period shall be made as Base Rate Loans, (ii) any
Loans under the relevant Facility that were to have been converted on the first
day of such Interest Period to Eurocurrency Loans denominated in Dollars shall
be continued as Base Rate Loans and

 48
 

 

 

(iii) any outstanding Eurocurrency Loans
denominated in Dollars under the relevant Facility shall be converted, on the
last day of the then-current Interest Period, to Base Rate Loans and (y) in
respect of any Multicurrency Revolving Loans denominated in a Foreign Currency,
then (i) any Multicurrency Revolving Loans in an Affected Foreign Currency
requested to be made on the first day of such Interest Period shall not be made
and (ii) any outstanding Multicurrency Revolving Loans denominated in an
Affected Foreign Currency shall be due and payable on the first day of such
Interest Period. Until such notice has been withdrawn by the Administrative
Agent, no further Eurocurrency Loans denominated in Dollars under the relevant
Facility or Multicurrency Revolving Loans denominated in a Foreign Currency in
an Affected Foreign Currency shall be made or continued as such, nor shall the
Borrower have the right to convert Loans under the relevant Facility to
Eurocurrency Loans.

4.8.          Pro
Rata Treatment and Payments. (a)  
Each borrowing by the Borrower from the Lenders hereunder, each payment
by the Borrower on account of any commitment fee and any reduction of the
Commitments of the Lenders shall be made pro  rata according to
the respective Tranche C Term Percentages, Tranche D Term
Percentages, Dollar Revolving Percentages or Multicurrency Revolving
Percentages, as the case may be, of the relevant Lenders.

(b)  
Each payment (including each prepayment) by the Borrower on account of
principal of and interest on the Term Loans of either Class shall be made pro
rata according to the respective outstanding principal amounts of the
Term Loans of such Class then held by the Lenders of such Class. The
amount of each principal prepayment of the Term Loans of either Class shall
be applied to reduce the then remaining installments of the Term Loans of such Class pro
rata based upon the then remaining principal amount thereof. Amounts
repaid or prepaid on account of the Term Loans of either Class may not be reborrowed.

(c)  
Each payment (including each prepayment) by the Borrower on account of
principal of and interest on the Revolving Loans under a Revolving Facility
shall be made pro  rata according to the respective outstanding
principal amounts of the Revolving Loans under such Revolving Facility then
held by the Revolving Lenders under such Revolving Facility. Each payment in
respect of Reimbursement Obligations in respect of any Letter of Credit shall
be made to the Issuing Lender that issued such Letter of Credit.

(d)  
All payments (including prepayments) to be made by the Borrower
hereunder, whether on account of principal, interest, fees or otherwise, shall
be made without setoff or counterclaim and shall be made prior to 12:00 Noon,
New York City time, on the due date thereof to the Administrative Agent, for
the account of the Lenders, at the Funding Office, in Dollars and in
immediately available funds, except payments to be made directly to an Issuing
Lender or Swingline Lender as expressly provided herein and except that
payments pursuant to Sections 4.9, 4.10, 4.11 and 11.5 shall be made directly
to the Persons entitled thereto; provided that payments made in a
Foreign Currency shall be made prior to 12:00 Noon, local time in the place of
payment, on the due date thereof to the Administrative Agent at the office of
the Administrative Agent designated by the Administrative Agent from time to
time for payments made in such Foreign Currency. All payments to be made by the
Borrower hereunder shall be made in Dollars; provided that (i) payments
in respect of the principal of or interest on any

 49
 

 

 

Multicurrency Revolving Loan denominated in a Foreign
Currency shall be made in such Foreign Currency, (ii) any amounts payable
under Section 4.9 or 4.11 in respect of any Multicurrency Revolving Loan
or Multicurrency Letter of Credit denominated in a Foreign Currency shall be
payable in such Foreign Currency if the certificate submitted by the applicable
Lender or Issuing Lender in respect of such amount specifies such amount in
such Foreign Currency and (iii) payments in respect of Multicurrency
Letters of Credit and Multicurrency L/C Obligations denominated in a Foreign
Currency may be made in such Foreign Currency to the extent permitted by, and
shall be made to the extent required by, the applicable provisions of this
Agreement. The Administrative Agent shall distribute such payments received by
it for the account of any other Person to the appropriate recipient promptly
upon receipt in like funds as received. If any payment hereunder (other than
payments on the Eurocurrency Loans) becomes due and payable on a day other than
a Business Day, such payment shall be extended to the next succeeding Business
Day. If any payment on a Eurocurrency Loan becomes due and payable on a day
other than a Business Day, the maturity thereof shall be extended to the next
succeeding Business Day unless the result of such extension would be to extend
such payment into another calendar month, in which event such payment shall be
made on the immediately preceding Business Day. In the case of any extension of
any payment of principal pursuant to the preceding two sentences, interest
thereon shall be payable at the then applicable rate during such extension.

(e)  
The failure of any Lender to make any Loan required to be made by it
shall not relieve any other Lender of its obligations hereunder; provided
that the Commitments of the Lenders are several and no Lender shall be
responsible for any other Lender’s failure to make Loans as required. Unless
the Administrative Agent shall have been notified in writing by any Lender
prior to a borrowing that such Lender will not make the amount that would
constitute its share of such borrowing available to the Administrative Agent,
the Administrative Agent may assume that such Lender is making such amount
available to the Administrative Agent, and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount. If such amount is not made available to the Administrative Agent by the
required time on the Borrowing Date therefor, such Lender shall pay to the
Administrative Agent, on demand, such amount with interest thereon (i) in
the case of Loans denominated in Dollars, at the greater of (A) a rate equal
to the daily average Federal Funds Effective Rate and (B) a rate
determined by the Administrative Agent in accordance with banking industry
rates on interbank compensation for the period until such Lender makes such
amount immediately available to the Administrative Agent and (ii) in the
case of Multicurrency Revolving Loans denominated in a Foreign Currency, at a
rate per annum reasonably determined by the Administrative Agent to be the cost
to it of funding such amount for the period until such Lender makes such amount
immediately available to the Administrative Agent. A certificate of the
Administrative Agent submitted to any Lender with respect to any amounts owing
under this paragraph shall be conclusive in the absence of manifest error. If
such Lender’s share of such borrowing is not made available to the
Administrative Agent by such Lender within three Business Days of such
Borrowing Date, the Administrative Agent shall also be entitled to recover such
amount with interest thereon at the rate per annum applicable to Base Rate
Loans under the relevant Facility (or with respect to Multicurrency Revolving
Loans denominated in a

 50
 

 

 

Foreign Currency, at a rate per annum reasonably
determined by the Administrative Agent to be the cost to it of funding such
amount), on demand, from the Borrower.

(f)  
Unless the Administrative Agent shall have been notified in writing by
the Borrower prior to the date of any payment due to be made by the Borrower
hereunder that the Borrower will not make such payment to the Administrative
Agent, the Administrative Agent may assume that the Borrower is making such
payment, and the Administrative Agent may, but shall not be required to, in
reliance upon such assumption, make available to the Lenders under the relevant
Facility or the Issuing Lender their respective pro  rata shares
of a corresponding amount. If such payment is not made to the Administrative
Agent by the Borrower within three Business Days after such due date, the
Administrative Agent shall be entitled to recover, on demand, from each Lender
to which any amount which was made available pursuant to the preceding
sentence, such amount with interest thereon (i) in the case of Loans
denominated in Dollars, at the greater of (A) the rate per annum equal to
the daily average Federal Funds Effective Rate and (B) a rate determined
by the Administrative Agent in accordance with banking industry rates on
interbank compensation and (ii) in the case of Multicurrency Revolving
Loans denominated in a Foreign Currency, at a rate per annum reasonably
determined by the Administrative Agent to be the cost to it of funding such
amount. Nothing herein shall be deemed to limit the rights of the
Administrative Agent or any Lender against the Borrower.

4.9.          Requirements
of Law. (a)   If the adoption of
or any change in any Requirement of Law or in the interpretation or application
thereof or compliance by any Lender or any Issuing Lender with any request or
directive (whether or not having the force of law) from any central bank or
other Governmental Authority made subsequent to the Effective Date:

(i)            shall impose, modify or hold
applicable any reserve, special deposit, compulsory loan or similar requirement
against assets held by, deposits or other liabilities in or for the account of,
advances, loans or other extensions of credit by, or any other acquisition of
funds by, any office of such Lender or Issuing Lender that is not otherwise
included in the determination of the Eurocurrency Rate hereunder; or

(ii)           shall impose on such Lender or
Issuing Lender any other condition;

and the result of any of the foregoing is to increase
the cost to such Lender or Issuing Lender, by an amount that such Lender or
Issuing Lender deems to be material, of making, converting into, continuing or
maintaining Eurocurrency Loans or issuing, maintaining or participating in
Letters of Credit, or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Borrower shall promptly pay such Lender or
Issuing Lender, upon its demand, any additional amounts necessary to compensate
such Lender or Issuing Lender for such increased cost or reduced amount
received or receivable. If any Lender or Issuing Lender becomes entitled to
claim any additional amounts pursuant to this paragraph, it shall promptly
notify the Borrower (with a copy to the Administrative Agent) of the event by
reason of which it has become so entitled.

(b)  
If any Lender or Issuing Lender shall have determined that the adoption
of or any change in any Requirement of Law regarding capital adequacy or in the
interpretation or

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application thereof or compliance by such Lender or
Issuing Lender or any corporation controlling such Lender or Issuing Lender
with any request or directive regarding capital adequacy (whether or not having
the force of law) from any Governmental Authority made subsequent to the
Effective Date shall have the effect of reducing the rate of return on such
Lender’s or Issuing Lender’s or such corporation’s capital as a consequence of
its obligations hereunder or under or in respect of any Letter of Credit to a
level below that which such Lender or Issuing Lender or such corporation could
have achieved but for such adoption, change or compliance (taking into
consideration such Lender’s or Issuing Lender’s or such corporation’s policies
with respect to capital adequacy) by an amount deemed by such Lender or Issuing
Lender to be material, then from time to time, after submission by such Lender
or Issuing Lender to the Borrower (with a copy to the Administrative Agent) of
a written request therefor, the Borrower shall pay to such Lender or Issuing
Lender such additional amount or amounts as will compensate such Lender or
Issuing Lender or such corporation for such reduction. Failure or delay on the
part of any Lender or Issuing Lender to demand compensation pursuant to this Section shall
not constitute a waiver of such Lender’s or Issuing Lender’s right to demand
such compensation; provided that the Borrower shall not be required to
compensate a Lender or Issuing Lender pursuant to this paragraph for any
amounts incurred more than six months prior to the date that such Lender or
Issuing Lender notifies the Borrower of such Lender’s or Issuing Lender’s
intention to claim compensation therefor; and provided, further,
that, if the circumstances giving rise to such claim have a retroactive effect,
then such six-month period shall be extended to include the period of such
retroactive effect.

(c)  
If any Governmental Authority of the jurisdiction of any Foreign
Currency (or any other jurisdiction in which the funding operations of any
Multicurrency Revolving Lender shall be conducted with respect to such Foreign
Currency) shall have in effect any reserve, liquid asset or similar requirement
with respect to any category of deposits or liabilities customarily used to
fund loans in such Foreign Currency, or by reference to which interest rates
applicable to loans in such Foreign Currency are determined, and the result of
such requirement shall be to increase the cost to any Multicurrency Revolving
Lender of making or maintaining any Multicurrency Revolving Loan in such
Foreign Currency, and such Multicurrency Revolving Lender shall deliver to the
Borrower a notice requesting compensation under this paragraph, then the Borrower
will pay to such Multicurrency Revolving Lender on each Interest Payment Date
with respect to each Multicurrency Revolving Loan in such affected Foreign
Currency an amount that will compensate such Multicurrency Revolving Lender for
such additional cost.

(d)  
A certificate as to any additional amounts payable pursuant to this Section submitted
by any Lender or Issuing Lender to the Borrower (with a copy to the
Administrative Agent) setting forth the basis of calculation of such additional
amounts shall be conclusive in the absence of manifest error. The obligations
of the Borrower pursuant to this Section shall survive the termination of
this Agreement and the payment of the Loans and all other amounts payable
hereunder.

(e)  
Notwithstanding any other provision of this Agreement, if, (i)(A) the
adoption of any law, rule or regulation after the Effective Date, (B) any
change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after

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the Effective Date or (C) compliance by any
Multicurrency Revolving Lender with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the Effective Date, shall make it unlawful for any such Multicurrency
Revolving Lender to make or maintain any Multicurrency Revolving Loan
denominated in a Foreign Currency or to give effect to its obligations as
contemplated hereby with respect to any Multicurrency Revolving Loan
denominated in a Foreign Currency, or (ii) there shall have occurred any
change in national or international financial, political or economic conditions
(including the imposition of or any change in exchange controls, but excluding
conditions otherwise covered by this Section 4.9) which would make it
impracticable for any Multicurrency Revolving Lenders to make or maintain
Multicurrency Revolving Loans denominated in the relevant Foreign Currency
after the Effective Date to, or for the account of, the Borrower, then:

(i)            by written notice to the Borrower
and to the Administrative Agent, such Multicurrency Revolving Lender or
Multicurrency Revolving Lenders may declare that Multicurrency Revolving Loans
denominated in the affected Foreign Currency will not thereafter (for the
duration of such unlawfulness) be made by such Multicurrency Revolving Lender
or Multicurrency Revolving Lenders hereunder (or be continued for additional
Interest Periods), whereupon any request for a Multicurrency Revolving Loan
denominated in such Foreign Currency or to continue a Multicurrency Revolving
Loan denominated in such Foreign Currency, as the case may be, for an
additional Interest Period shall, as to such Multicurrency Revolving Lender or
Multicurrency Revolving Lenders only, be of no force and effect, unless such
declaration shall be subsequently withdrawn; and

(ii)           all outstanding Multicurrency
Revolving Loans denominated in the affected Foreign Currency made by such
Multicurrency Revolving Lender or Multicurrency Revolving Lenders shall be
repaid on the last day of the then current Interest Period with respect thereto
or, if earlier, the date on which the applicable notice becomes effective.

(f)  
For purposes of Section 4.9(e), a notice to the Borrower by any
Multicurrency Revolving Lender shall be effective as to each Multicurrency
Revolving Loan denominated in the affected Foreign Currency made by such
Multicurrency Revolving Lender, if lawful, on the last day of the Interest
Period currently applicable to such Multicurrency Revolving Loan denominated in
a Foreign Currency; in all other cases such notice shall be effective on the
date of receipt thereof by the Borrower.

4.10.        Taxes.
(a)   Any and all payments made by
or on behalf of the Borrower under this Agreement shall be made free and clear
of, and without deduction or withholding for or on account of, any present or
future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority, excluding net income taxes
and franchise taxes (imposed in lieu of net income taxes) imposed on any Agent
or any Lender as a result of a present or former connection between such Agent
or such Lender and the jurisdiction of the Governmental Authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other
than any such connection arising solely from such Agent or such Lender having
executed, delivered or performed its obligations or received a payment under, or

 53
 

 

 

enforced, this Agreement or any other Loan Document). If
any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions
or withholdings (“Non-Excluded Taxes”) or Other Taxes are required to be
withheld from any amounts payable to any Agent or any Lender hereunder, the
amounts so payable to such Agent or such Lender shall be increased to the
extent necessary to yield to such Agent or such Lender (after payment of all
Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable
hereunder at the rates or in the amounts specified in this Agreement, provided,
however, that the Borrower shall not be required to increase any such
amounts payable to any Lender with respect to any Non-Excluded Taxes (i) that
are attributable to such Lender’s failure to comply with the requirements of
paragraph (d) or (e) of this Section or (ii) that are
United States withholding taxes imposed on amounts payable to such Lender at
the time such Lender becomes a party to this Agreement or designates a new
lending office, except to the extent that such Lender’s assignor (if any) was
entitled, at the time of assignment, to receive additional amounts from the
Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph.

(b)  
In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

(c)  
Whenever any Non-Excluded Taxes or Other Taxes are payable by the
Borrower, as promptly as possible thereafter the Borrower shall send to the
Administrative Agent for its own account or for the account of the relevant
Agent or Lender, as the case may be, a certified copy of an original official
receipt received by the Borrower showing payment thereof. If the Borrower fails
to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing
authority or fails to remit to the Administrative Agent the required receipts
or other required documentary evidence, the Borrower shall indemnify the Agents
and the Lenders for any incremental taxes, interest or penalties that may
become payable by any Agent or any Lender as a result of any such failure.

(d)  
Each Lender (or Transferee) that is not a “U.S. Person” as defined in Section 7701(a)(30)
of the Code (a “Non-U.S. Lender”) shall deliver to the Borrower
and the Administrative Agent (or, in the case of a Participant, to the Lender
from which the related participation shall have been purchased) two copies of
either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI,
or, in the case of a Non-U.S. Lender claiming exemption from U.S. federal
withholding tax under Section 871(h) or 881(c) of the Code with
respect to payments of “portfolio interest”, a statement substantially in the
form of Exhibit G and a Form W-8BEN, or any subsequent versions
thereof or successors thereto, properly completed and duly executed by such Non-U.S.
Lender claiming complete exemption from, or a reduced rate of, U.S. federal
withholding tax on all payments by the Borrower under this Agreement and the
other Loan Documents. Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the
case of any Participant, on or before the date such Participant purchases the
related participation). In addition, each Non-U.S. Lender shall deliver
such forms promptly upon the obsolescence or invalidity of any form previously
delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall promptly
notify the Borrower at any time it determines that it is no longer in a position
to provide any previously delivered certificate to the Borrower (or any other
form of certification adopted by the U.S. taxing

 54
 

 

 

authorities for such purpose). Notwithstanding any
other provision of this paragraph, a Non-U.S. Lender shall not be required
to deliver any form pursuant to this paragraph that such Non-U.S. Lender
is not legally able to deliver.

(e)  
Each Lender (or Transferee) that is entitled to an exemption from or
reduction of non-U.S. withholding tax under the law of the jurisdiction in
which the Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such
properly completed and executed documentation prescribed by applicable law as
will permit such payments to be made without withholding or at a reduced rate, provided
that such Lender is legally entitled to complete, execute and deliver such
documentation and in such Lender’s judgment such completion, execution or
submission would not materially prejudice the legal position of such Lender.

(f)  
The agreements in this Section 4.10 shall survive the termination
of this Agreement and the payment of the Loans and all other amounts payable
hereunder.

(g)  
If any Lender or the Administrative Agent determines, in its sole
discretion, that it has received a refund attributable to any Non-Excluded
Taxes or Other Taxes paid by the Borrower or for which the Lender or the
Administrative Agent has received payment from the Borrower hereunder, such
Lender or the Administrative Agent, within 30 days of such receipt, shall
deliver to the Borrower the amount of such refund without interest (other than
any interest paid by the relevant Governmental Authority with respect to such
refund); provided, however, that the Borrower agrees to repay the
amount paid over to the Borrower (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to such Lender or the
Administrative Agent in the event that such Lender or the Administrative Agent
is required to repay such refund to such Governmental Authority. In addition,
upon a written request by the Borrower, any Lender and the Administrative Agent
shall timely execute and deliver to the Borrower such certificates, forms or
other documents which can be reasonably furnished consistent with the facts to
assist the Borrower in applying for refunds of Non-Excluded Taxes or Other
Taxes remitted hereunder, unless to do so will unduly prejudice or cause undue
hardship to such Lender or the Administrative Agent (as determined in the sole
discretion of such Lender or the Administrative Agent). This paragraph shall
not be construed to require any Lender or the Administrative Agent to make
available its tax returns (or any other information relating to its Taxes that
it deems confidential) to the Borrower or any other Person.

4.11.        Indemnity.
The Borrower agrees to indemnify each Lender and to hold each Lender harmless
from any loss or expense that such Lender may sustain or incur as a consequence
of (a) default by the Borrower in making a borrowing of, conversion into
or continuation of Eurocurrency Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Agreement, (b) default
by the Borrower in making any prepayment of or conversion from Eurocurrency
Loans after the Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (c) the making of a prepayment of
Eurocurrency Loans or the conversion of Eurocurrency Loans, in each case, on a
day that is not the last day of an Interest Period with respect thereto. Such
indemnification may include an

 55
 

 

 

amount equal to the excess, if any, of (i) the
amount of interest that would have accrued on the amount so prepaid, or not so
borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of
such Interest Period (or, in the case of a failure to borrow, convert or
continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Loans
provided for herein (excluding, however, the Applicable Margin included
therein, if any) over (ii) the amount of interest (as reasonably
determined by such Lender) that would have accrued to such Lender on such
amount by placing such amount on deposit for a comparable period with leading
banks in the interbank Eurocurrency market. A certificate as to any amounts
payable pursuant to this Section submitted to the Borrower by any Lender
shall be conclusive in the absence of manifest error. This covenant shall
survive the termination of this Agreement and the payment of the Loans and all
other amounts payable hereunder.

4.12.        Change
of Lending Office. Each Lender agrees that, upon the occurrence of any
event giving rise to the operation of Section 4.9, 4.10(a) or 4.10(b) with
respect to such Lender, it will, if requested by the Borrower, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate
another lending office for any Loans affected by such event with the object of
avoiding the consequences of such event; provided that such designation
is made on terms that, in the sole judgment of such Lender, cause such Lender
and its lending office(s) to suffer no economic, legal or regulatory
disadvantage, and provided, further, that nothing in this Section shall
affect or postpone any of the obligations of the Borrower or the rights of any
Lender pursuant to Section 4.9, 4.10(a) or 4.10(b).

4.13.        Replacement
of Lenders. The Borrower shall be permitted to replace any Lender that (a) requests
reimbursement for amounts owing pursuant to Section 4.9, 4.10(a) or
4.10(b) or (b) defaults in its obligation to make Loans hereunder,
with a replacement financial institution; provided that (i) such
replacement does not conflict with any Requirement of Law, (ii) no Event
of Default shall have occurred and be continuing at the time of such
replacement, (iii) prior to any such replacement, such Lender shall have
taken no action under Section 4.12 so as to eliminate the continued need
for payment of amounts owing pursuant to Section 4.9, 4.10(a) or
4.10(b), (iv) the replacement financial institution shall purchase, at
par, all Loans and other amounts owing to such replaced Lender on or prior to
the date of replacement, (v) the Borrower shall be liable to such replaced
Lender under Section 4.11 if any Eurocurrency Loan owing to such replaced
Lender shall be purchased other than on the last day of the Interest Period
relating thereto, (vi) the replacement financial institution, if not
already a Lender, shall be reasonably satisfactory to the Administrative Agent
and (if the replaced Lender was a Revolving Lender) each Issuing Lender and (if
the replaced Lender was a Dollar Revolving Lender) the Swingline Lender, (vii) the
replaced Lender shall be obligated to make such replacement in accordance with
the provisions of Section 11.6, (viii) until such time as such
replacement shall be consummated, the Borrower shall pay all additional amounts
(if any) required pursuant to Section 4.9, 4.10(a) or 4.10(b), as the
case may be, and (ix) any such replacement shall not be deemed to be a
waiver of any rights that the Borrower, the Administrative Agent or any other
Lender shall have against the replaced Lender.

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

(b)  
The Administrative Agent, on behalf of the Borrower, shall maintain the
Register pursuant to Section 11.6, and a subaccount therein for each
Lender, in which shall be recorded (i) the amount of each Loan made
hereunder and any Note evidencing such Loan, the Type of such Loan and each
Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) both the amount of any sum received by the
Administrative Agent hereunder from the Borrower and each Lender’s share
thereof.

(c)  
The entries made in the Register and the accounts of each Lender
maintained pursuant to Section 4.14(a) shall, to the extent permitted
by applicable law, be prima  facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain the
Register or any such account, or any error therein, shall not in any manner
affect the obligation of the Borrower to repay (with applicable interest) the
Loans made to the Borrower by such Lender in accordance with the terms of this
Agreement.

(d)  
The Borrower agrees that, upon the request by any Lender (through the
Administrative Agent), the Borrower will prepare, execute and deliver to such
Lender a promissory note of the Borrower payable to the order of such Lender
(or if requested by such Lender, to such Lender and its registered assigns) and
in a form approved by the Administrative Agent, evidencing Loans made by such
Lender.

4.15.        Illegality.
Notwithstanding any other provision herein, if the adoption of or any change in
any Requirement of Law or in the interpretation or application thereof shall
make it unlawful for any Lender to make or maintain Eurocurrency Loans as
contemplated by this Agreement, (a) the commitment of such Lender
hereunder to make Eurocurrency Loans, continue Eurocurrency Loans as such and
convert Base Rate Loans to Eurocurrency Loans shall forthwith be canceled and (b) such
Lender’s Loans then outstanding as Eurocurrency Loans, if any, shall be
converted automatically to Base Rate Loans (or, in the case of Multicurrency
Revolving Loans denominated in a Foreign Currency, be repaid) on the respective
last days of the then current Interest Periods with respect to such Loans or
within such earlier period as required by law. If any such conversion of a
Eurocurrency Loan occurs on a day which is not the last day of the then current
Interest Period with respect thereto, the Borrower shall pay to such Lender
such amounts, if any, as may be required pursuant to Section 4.11.

4.16.        Foreign
Currency Exchange Rate. (a)  No later than 1:00 P.M., London
time, on each Calculation Date with respect to a Foreign Currency, the
Administrative Agent shall determine the Exchange Rate as of such Calculation
Date with respect to such Foreign Currency, provided that, upon receipt
of a Borrowing Request pursuant to Section 3.2 for a borrowing of a Multicurrency
Revolving Loan denominated in a Foreign Currency or a request for a Letter of
Credit denominated in a Foreign Currency pursuant to Section 3.8, the

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Administrative Agent shall determine the Exchange Rate
with respect to the relevant Foreign Currency in accordance with the foregoing
(it being acknowledged and agreed that the Administrative Agent shall use such
Exchange Rate for the purposes of determining compliance with Section 3.1(a) or
3.7(a), as applicable, with respect to such Borrowing Request or Application). The
Exchange Rates so determined shall become effective on the first Business Day
immediately following the relevant Calculation Date (a “Reset Date”),
shall remain effective until the next succeeding Reset Date and shall for all
purposes of this Agreement (other than Section 4.7, 11.18 or any other
provision expressly requiring the use of a current Exchange Rate) be the
Exchange Rates employed in converting any amounts between Dollars and Foreign
Currencies.

(b)  
No later than 5:00 P.M., London time, on each Reset Date and each
Borrowing Date with respect to Multicurrency Revolving Loans denominated in a
Foreign Currency, the Administrative Agent shall determine the aggregate amount
of the Dollar Equivalents of the principal amounts of the Multicurrency
Revolving Loans denominated in a Foreign Currency then outstanding (after
giving effect to any Multicurrency Revolving Loans denominated in a Foreign
Currency to be made or repaid on such date and the aggregate amount of the L/C
Obligations then outstanding).

(c)  
The Administrative Agent shall promptly notify the Borrower of each
determination of an Exchange Rate hereunder.

SECTION 5.
 REPRESENTATIONS AND WARRANTIES

To induce the Agents and the Lenders to enter into
this Agreement and to make the Loans and issue or participate in the Letters of
Credit, the Borrower hereby represents and warrants to each Agent and each
Lender that:

5.1.          Financial
Condition. The audited consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as at December 31, 2005, and the related
consolidated statements of income and of cash flows for the fiscal year ended
on such date, reported on by and accompanied by an unqualified report from
Deloitte & Touche LLP, present fairly the consolidated financial
condition of the Borrower and its consolidated Subsidiaries as at such date,
and the consolidated results of its operations and its consolidated cash flows
for the fiscal year then ended. The unaudited consolidated balance sheet of the
Borrower and its consolidated Subsidiaries as at March 31, 2006, and the
related unaudited consolidated statements of income and cash flows for the
three-month period ended on such date, present fairly the consolidated
financial condition of the Borrower and its consolidated Subsidiaries as at
such date, and the consolidated results of its operations and its consolidated
cash flows for the three-month period then ended (subject to normal year-end
audit adjustments). All such financial statements, including the related
schedules and notes thereto, have been prepared in accordance with GAAP applied
consistently throughout the periods involved (except as approved by the
aforementioned firm of accountants and disclosed therein). No Group Member has
any material Guarantee Obligations, contingent liabilities and liabilities for
taxes, or any long-term leases or unusual forward or long-term
commitments, including any interest rate or foreign currency swap or exchange
transaction or other obligation in respect of derivatives, that

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are not reflected in the most recent financial
statements referred to in this paragraph or disclosed in this Section 5..

5.2.          No
Change. Since December 31, 2005, there has been no development or
event that has had or could reasonably be expected to have a Material Adverse
Effect.

5.3.          Corporate
Existence; Compliance with Law. Each Group Member (a) is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has the power and authority, and the
legal right, to own and operate its property, to lease the property it operates
as lessee and to conduct the business in which it is currently engaged, (c) is
duly qualified as a foreign corporation 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, except to the extent that
the failure to so qualify could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect and (d) is in
compliance with all Requirements of Law except to the extent that the failure
to comply therewith could not, in the aggregate, reasonably be expected to have
a Material Adverse Effect.

5.4.          Power;
Authorization; Enforceable Obligations. Each Loan Party has the power and
authority, and the legal right, to make, deliver and perform the Loan Documents
to which it is a party and, in the case of the Borrower, to obtain extensions
of credit hereunder. Each Loan Party has taken all necessary organizational
action to authorize the execution, delivery and performance of the Loan
Documents to which it is a party and, in the case of the Borrower, to authorize
the extensions of credit on the terms and conditions of this Agreement. No
consent or authorization of, filing with, notice to or other act by or in
respect of, any Governmental Authority or any other Person is required in
connection with the extensions of credit hereunder or with the execution,
delivery, performance, validity or enforceability of this Agreement or any of
the other Loan Documents, except (i) consents, authorizations, filings and
notices described in Schedule 5.4, which consents, authorizations, filings
and notices have been obtained or made and are in full force and effect and (ii) the
filings referred to in Section 5.19. Each Loan Document has been duly
executed and delivered on behalf of each Loan Party party thereto. This
Agreement constitutes, and each other Loan Document upon execution will
constitute, a legal, valid and binding obligation of each Loan Party party
thereto, enforceable against each such Loan Party in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

5.5.          No
Legal Bar. The execution, delivery and performance of this Agreement and
the other Loan Documents, the issuance of Letters of Credit, the borrowings
hereunder and the use of the proceeds thereof will not violate any Requirement
of Law or any Contractual Obligation of any Group Member and will not result
in, or require, the creation or imposition of any Lien on any of their
respective properties or revenues pursuant to any Requirement of Law or any
such Contractual Obligation (other than the Liens created by the Security
Documents). No Requirement of Law or Contractual Obligation applicable to the
Borrower or any of its Subsidiaries could reasonably be expected to have a
Material Adverse Effect.

 

 59

 

5.6.          Litigation.
Except as described on Schedule 5.6, no litigation, investigation or
proceeding of or before any arbitrator or Governmental Authority is pending or,
to the knowledge of the Borrower, threatened by or against any Group Member or
against any of their respective properties or revenues (a) with respect to
any of the Loan Documents or any of the transactions contemplated hereby or
thereby, or (b) that could reasonably be expected to have a Material
Adverse Effect.

5.7.          No
Default. No Group Member is in default under or with respect to any of its
Contractual Obligations in any respect that could reasonably be expected to
have a Material Adverse Effect. No Default or Event of Default has occurred and
is continuing.

5.8.          Ownership
of Property; Liens. Each Group Member has title in fee simple to, or a
valid leasehold interest in, all its real property material to its business,
and, to its knowledge, good title to, or a valid leasehold interest in, all its
other property, and none of such property is subject to any Lien except as
permitted by Section 8.3, and as set forth on Schedule B to each
Title Policy.

5.9.          Intellectual
Property. Each Group Member owns, or is licensed to use, all material
Intellectual Property necessary for the conduct of its business as currently
conducted. No claim has been asserted and is pending by any Person challenging
or questioning the use of any Intellectual Property or the validity or
effectiveness of any Intellectual Property, nor does the Borrower know of any
valid basis for any such claim, except such claims that, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect. To
the knowledge of the Borrower, the use of Intellectual Property by each Group
Member does not infringe on the rights of any Person in any material respect.

5.10.        Taxes.
Each Group Member has filed or caused to be filed all Federal, state and other
material tax returns that are required to be filed and has paid all taxes shown
to be due and payable on said returns or on any assessments made against it or
any of its property and all other taxes, fees or other charges imposed on it or
any of its property by any Governmental Authority which have become due and
payable (other than any taxes the amount or validity of which are currently
being contested in good faith by appropriate proceedings and with respect to
which reserves in conformity with GAAP have been provided on the books of the
relevant Group Member); no tax Lien has been filed, and, to the knowledge of the
Borrower, no claim is being asserted, with respect to any such tax, fee or
other charge.

5.11.        Federal
Regulations. No part of the proceeds of any Loans, and no other extensions
of credit hereunder, will be used for “buying” or “carrying” any “margin stock”
within the respective meanings of each of the quoted terms under
Regulation U as now and from time to time hereafter in effect or for any
purpose that violates the provisions of the Regulations of the Board. If
requested by any Lender or the Administrative Agent, the Borrower will furnish
to the Administrative Agent and each Lender a statement to the foregoing effect
in conformity with the requirements of FR Form G-3 or FR Form U-1,
as applicable, referred to in Regulation U.

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5.12.        Labor
Matters. Except as, in the aggregate, could not reasonably be expected to
have a Material Adverse Effect:  (a) there
are no strikes or other labor disputes against any Group Member pending or, to
the knowledge of the Borrower, threatened; (b) hours worked by and payment
made to employees each Group Member have not been in violation of the Fair
Labor Standards Act or any other applicable Requirement of Law dealing with
such matters; and (c) all payments due from any Group Member on account of
employee health and welfare insurance have been paid or accrued as a liability
on the books of the relevant Group Member.

5.13.        ERISA.
Except as, in the aggregate, could not reasonably be expected to have a
Material Adverse Effect:  (a) neither
a Reportable Event nor an “accumulated funding deficiency” (within the meaning
of Section 412 of the Code or Section 302 of ERISA) has occurred
during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Plan, and each Plan
has complied in all material respects with the applicable provisions of ERISA
and the Code; (b) no termination of a Single Employer Plan has occurred,
and no Lien in favor of the PBGC or a Plan has arisen, during such five-year
period that would result in a material liability; (c) the present value of
all accrued benefits under each Single Employer Plan (based on those
assumptions used to fund such Plans) did not, as of the last annual valuation
date prior to the date on which this representation is made or deemed made, exceed
the value of the assets of such Plan allocable to such accrued benefits by a
material amount in relation to the business of the Borrower; (d) neither
the Borrower nor any Commonly Controlled Entity has had a complete or partial
withdrawal from any Multiemployer Plan that has resulted or could reasonably be
expected to result in a material liability under ERISA; and (e) no such
Multiemployer Plan is in Reorganization or Insolvent.

5.14.        Investment
Company Act; Public Utility Holding Company Act; Other Regulations. No Loan
Party is (a) an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended
or (b) a “holding company” as defined in, or subject to regulation under,
the Public Utility Holding Company Act of 1935. No Loan Party is subject to
regulation under any Requirement of Law (other than Regulation X of the
Board) that limits its ability to incur Indebtedness.

5.15.        Subsidiaries.
Except as disclosed to the Administrative Agent by the Borrower in writing from
time to time after the Restatement Effective Date, (a) Schedule 5.15(a) sets
forth the name and jurisdiction of incorporation of each Subsidiary and, as to
each such Subsidiary, the percentage of each class of Capital Stock owned by
any Loan Party and (b) there are no outstanding subscriptions, options,
warrants, calls, rights or other agreements or commitments (other than stock
options or other equity granted to employees, directors or other persons and
directors’ qualifying shares) of any nature relating to any Capital Stock of
the Borrower or any Subsidiary, except as created by the Loan Documents or, as
of the Restatement Effective Date, except as disclosed on
Schedule 5.15(b).

5.16.        [Reserved]

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5.17.        Environmental
Matters. Except as, in the aggregate, could not reasonably be expected to
have a Material Adverse Effect:

(a)           the facilities and properties
currently owned, leased or operated by any Group Member (the “Subject
Properties”) and, to the knowledge of the Borrower, the facilities and
properties formerly owned, leased or operated by any Group Member do not
contain, and have not previously contained, any Materials of Environmental
Concern in amounts or concentrations or under circumstances that constitute or
constituted a violation of, or could reasonably be expected to give rise to
liability under, any applicable Environmental Law;

(b)           no Group Member has received any
written notice of, or is aware of, any violation, alleged violation or
non-compliance, request for information, claim or demand liability or potential
liability arising under or relating to any Environmental Laws involving any
Group Member (the “Business”), nor does the Borrower have knowledge or
reason to believe that any such notice will be received or is being threatened;

(c)           Materials of Environmental Concern
have not been transported or disposed of from the Subject Properties in
violation of, or in a manner or to a location that could reasonably be expected
to give rise to liability under, any applicable Environmental Law, nor have any
Materials of Environmental Concern been generated, treated, stored or disposed
of at, on or under any of the Subject Properties in violation of, or in a
manner that could reasonably be expected to give rise to liability under, any
applicable Environmental Law;

(d)           no judicial proceeding or
governmental or administrative action is pending or, to the knowledge of the
Borrower, threatened, under any Environmental Law nor are there any consent
decrees or other decrees, consent orders, administrative orders or other
orders, or other administrative or judicial requirements outstanding under any
Environmental Law in either case, as to which any Group Member is or, to the
knowledge of the Borrower, will be named as a party;

(e)           there has been no release or threat
of release of Materials of Environmental Concern at or from the Subject
Properties, or arising from or related to the operations of any Group Member in
connection with the Subject Properties or otherwise in connection with the
Business, in violation of or in amounts or in a manner that could reasonably be
expected to give rise to liability under any applicable Environmental Laws;

(f)            the Subject Properties and all
operations at the Subject Properties are in compliance, and have in the last
five years been in compliance, with all applicable Environmental Laws, and
there is no violation of any applicable Environmental Law with respect to the
Subject Properties or the Business; and

(g)           no Group Member has assumed or
retained any liability of any other Person under Environmental Laws.

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5.18.        Accuracy
of Information, etc.   No statement or information contained in
this Agreement, any other Loan Document, the Confidential Information
Memorandum or any other document, certificate or statement furnished by or on
behalf of any Loan Party to the Administrative Agent or the Lenders, or any of
them, for use in connection with the transactions contemplated by this
Agreement or the other Loan Documents, contained as of the date such statement,
information, document or certificate was so furnished (or, in the case of the
Confidential Information Memorandum, as of the date of this Agreement), any
untrue statement of a material fact or omitted to state a material fact
necessary to make the statements contained herein or therein not misleading. The
projections contained in the materials referenced above are based upon good
faith estimates and assumptions believed by management of the Borrower to be
reasonable at the time made, it being recognized by the Lenders that such
financial information as it relates to future events is not to be viewed as
fact and that actual results during the period or periods covered by such
financial information may differ from the projected results set forth therein
by a material amount. There is no fact known to any Loan Party that could
reasonably be expected to have a Material Adverse Effect that has not been
expressly disclosed herein, in the other Loan Documents, in the Confidential
Information Memorandum or in any other documents, certificates and statements
furnished to the Administrative Agent and the Lenders for use in connection
with the transactions contemplated hereby and by the other Loan Documents.

5.19.        Security
Documents. (a)   The Guarantee and
Collateral Agreement is effective to create in favor of the Administrative
Agent, for the benefit of the Lenders, a legal, valid and enforceable security
interest in the Collateral described therein and proceeds thereof. In the case
of the Pledged Stock described in the Guarantee and Collateral Agreement, when
stock certificates representing such Pledged Stock have been delivered to the
Administrative Agent, together with proper endorsements executed in blank and
such other action has been taken with respect to Pledged Stock of Foreign
Subsidiaries as specified in the Guarantee and Collateral Agreement, and in the
case of the other Collateral described in the Guarantee and Collateral
Agreement, when financing statements specified on Schedule 5.19(a) have
been filed in the offices specified on Schedule 5.19(a), the Guarantee and
Collateral Agreement constitutes a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in such
Collateral and the proceeds thereof, as security for the Obligations (as
defined in the Guarantee and Collateral Agreement), in each case prior and
superior in right to any other Person (except, in the case of Collateral other
than Pledged Stock, Liens permitted by Section 8.3).

(b)  
Each Mortgage is effective to create in favor of the Administrative
Agent, for the benefit of the Lenders (as defined in the Guarantee and
Collateral Agreement), a legal, valid and enforceable Lien on the Mortgaged
Properties described therein and proceeds thereof, and when the Mortgages are
filed in the offices specified on Schedule 5.19(b), such Mortgages shall
constitute a fully perfected Lien on, and security interest in, all right,
title and interest of the Loan Parties in such Mortgaged Properties and the proceeds
thereof, as security for the Obligations (as defined in the relevant Mortgage),
in each case prior and superior in right to any other Person, subject to the
exceptions set forth on Schedule B to the applicable Title Policy and the Liens
permitted under Section 8.3. Schedule 1.1(a) lists each parcel
of real property in the United States owned in fee simple by the Borrower or
any of its Subsidiaries as of the Effective Date.

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5.20.        Solvency.
Each Loan Party is, and after giving effect to the Restatement Transactions and
the incurrence of all Indebtedness and obligations being incurred in connection
herewith and therewith will be and will continue to be, Solvent.

5.21.        Senior
Indebtedness. The Obligations (x) constitute “Senior Debt” and “Designated
Senior Debt” of the Borrower under and as defined in each Senior Subordinated
Securities Indenture and (y) are the only existing “Designated Senior Debt”
under each Senior Subordinated Securities Indenture. The obligations of each
Subsidiary Guarantor under the Guarantee and Collateral Agreement constitute “Guarantor
Senior Debt” of such Subsidiary Guarantor under and as defined in each
Senior Subordinated Securities Indenture.

5.22.        Regulation H.
As of the Restatement Effective Date, except as specified on Schedule 5.22,
no Mortgage encumbers improved real property that is located in an area that
has been identified by the Secretary of Housing and Urban Development as an
area having special flood hazards and in which flood insurance has been made
available under the National Flood Insurance Act of 1968.

5.23.        Material
Contracts. (a)   As of the
Restatement Effective Date, (i) each Material Contract is in full force
and effect and is a legal, valid and binding obligation of each party thereto
enforceable in accordance with its terms and (ii) no Group Member is in
default of any material provision of any Material Contract.

(b)  
To the best knowledge of the Borrower, (i) there has been no
default, breach or other violation of any Material Contract and (ii) no
Governmental Authority has any basis for terminating any Material Contract
other than customary termination provisions relating to convenience and other
similar provisions, except, in each case, as could not reasonably be expected
to have a Material Adverse Effect.

(c)  
To the best knowledge of the Borrower, no Governmental Authority has
delivered notice of or otherwise demonstrated its intention to exercise its
option to terminate a Material Contract on the basis of clause (b)(ii) above
between itself and any of the Group Members, except for any such terminations
that, in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

(d)  
Schedule 5.23 sets forth each material contract between any Group
Member and any Governmental Authority in effect on the Effective Date.

5.24.        Insurance.
Schedule 5.24 sets forth a description of all material insurance
maintained by or on behalf of the Borrower and the Subsidiary Guarantors as of
the Effective Date. As of the Restatement Effective Date, all premiums due and
payable in respect of such insurance have been paid. The Borrower reasonably
believes that the insurance maintained by or on behalf of the Borrower and its
Subsidiaries is adequate.

SECTION 6.  CONDITIONS PRECEDENT

6.1.          Conditions
to Initial Extension of Credit. [Intentionally Omitted].

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6.2.          Conditions
to Each Extension of Credit. The agreement of each Lender to make any
extension of credit requested to be made by it on any date (including its
initial extension of credit) is subject to the satisfaction of the following
conditions precedent:

(a)  
Representations and Warranties. Each of the representations and
warranties made by any Loan Party in or pursuant to the Loan Documents shall be
true and correct on and as of such date as if made on and as of such date.

(b)  
No Default. No Default or Event of Default shall have occurred
and be continuing on such date or after giving effect to the extensions of
credit requested to be made on such date.

Each borrowing by and issuance of a Letter of Credit
for the account of the Borrower hereunder shall constitute a representation and
warranty by the Borrower as of the date of such extension of credit that the
conditions contained in this Section 6.2 have been satisfied.

SECTION 7.  AFFIRMATIVE COVENANTS

The Borrower hereby agrees that, so long as the
Commitments remain in effect, any Letter of Credit remains outstanding or any
Loan or other amount is owing to any Lender or Agent hereunder, the Borrower
shall and shall cause each of its Subsidiaries to:

7.1.          Financial
Statements. Furnish to the Administrative Agent for distribution to each
Lender:

(a)           as soon as available, but in any
event within 90 days after the end of each fiscal year of the Borrower, a
copy of the audited consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as at the end of such year and the related audited
consolidated statements of income and of cash flows for such year, setting
forth in each case in comparative form the figures for the previous year, reported
on without a “going concern” or like qualification or exception, or
qualification arising out of the scope of the audit, by Deloitte &
Touche LLP or other independent certified public accountants of nationally
recognized standing; and

(b)           as soon as available, but in any
event not later than 45 days after the end of each of the first three
quarterly periods of each fiscal year of the Borrower, the unaudited
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as
at the end of such quarter and the related unaudited consolidated statements of
income and of cash flows for such quarter and the portion of the fiscal year
through the end of such quarter, setting forth in each case in comparative form
the figures for the previous year, certified by a Responsible Officer as being
fairly stated in all material respects (subject to normal year-end audit
adjustments).

All such financial statements shall be complete and
correct in all material respects and shall be prepared in reasonable detail and
in accordance with GAAP.

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7.2.          Certificates;
Other Information. Furnish to the Administrative Agent for distribution to
each Lender (or, in the case of clause (h), to the relevant Lender):

(a)           concurrently with the delivery of the
financial statements referred to in Section 7.1(a), a certificate of the
independent certified public accountants reporting on such financial statements
stating that in making the examination necessary therefor no knowledge was
obtained of any Default or Event of Default, except as specified in such
certificate;

(b)           concurrently with the delivery of any
financial statements pursuant to Section 7.1, (i) a certificate of a
Responsible Officer stating that, to the best of each such Responsible Officer’s
knowledge, each Loan Party during such period has observed or performed all of
its covenants and other agreements, and satisfied every condition, contained in
this Agreement and the other Loan Documents to which it is a party to be
observed, performed or satisfied by it, and that such Responsible Officer has
obtained no knowledge of any Default or Event of Default except as specified in
such certificate and (ii) a Compliance Certificate containing all
information and calculations necessary for determining, on a consolidated
basis, compliance by all Group Members with the provisions of this Agreement
referred to therein as of the last day of the fiscal quarter or fiscal year of
the Borrower, as the case may be, and, if applicable, for determining the
Applicable Margins;

(c)           as soon as available, and in any
event no later than 45 days after the end of each fiscal year of the
Borrower, a detailed consolidated budget for the following fiscal year
(including a projected consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of the following fiscal year, the related
consolidated statements of projected cash flow, projected changes in financial
position and projected income and a description of the underlying assumptions
applicable thereto) (collectively, the “Projections”), which Projections
shall in each case be accompanied by a certificate of a Responsible Officer
stating that such Projections are based on reasonable estimates, information
and assumptions and that such Responsible Officer has no reason to believe that
such Projections are incorrect in any material respect in light of the
circumstances under which such estimates and assumptions were made;

(d)           if at any time the Borrower is not
required to file periodic reports with the SEC pursuant to Section 13 or
15(d) of the Exchange Act, within 90 days after the end of each
fiscal year of the Borrower and within 45 days after the end of each other
fiscal quarter of the Borrower, a narrative discussion and analysis of the
financial condition and results of operations of the Borrower and its
Subsidiaries for such fiscal quarter and for the period from the beginning of
the then current fiscal year to the end of such fiscal quarter, as compared to
the comparable periods of the previous year;

(e)           no later than ten Business Days prior
to the effectiveness thereof, copies of substantially final drafts of any
proposed amendment, supplement, waiver or other modification with respect to
any Senior Subordinated Securities Indenture;

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(f)            within five days after the same are
sent, copies of all financial statements and reports that the Borrower sends to
the holders of any class of its debt securities or public equity securities
and, within five days after the same are filed, copies of all financial
statements and reports the Borrower may make to, or file with, the SEC;

(g)           if any Subsidiary organized under the
laws of any jurisdiction within the United States becomes directly owned by a
Foreign Subsidiary, prompt notice thereof, including whether such Subsidiary is
to be treated as a Foreign Subsidiary in accordance with the proviso to the
definition of the term “Domestic Subsidiary”; and

(h)           promptly, such additional financial
and other information as any Lender through the Administrative Agent may from
time to time reasonably request.

7.3.          Payment
of Obligations. Pay, discharge or otherwise satisfy at or before maturity
or before they become delinquent, as the case may be, all its material
obligations of whatever nature (including, for the avoidance of doubt, any tax
obligations), except where the amount or validity thereof is currently being
contested in good faith by appropriate proceedings and reserves in conformity
with GAAP with respect thereto have been provided on the books of the relevant
Group Member.

7.4.          Maintenance
of Existence; Compliance. (a)  (i)  Preserve, renew and keep
in full force and effect its corporate existence and (ii) take all
reasonable action to maintain all rights, privileges and franchises necessary
or desirable in the normal conduct of its business, except, in each case, as
otherwise permitted by Section 8.4 and except, in the case of clause (ii) above,
to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (b) comply with all Contractual Obligations
and Requirements of Law except to the extent that failure to comply therewith
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

7.5.          Maintenance
of Property; Insurance. (a)  
Keep all Property material to the conduct of its business in good
working order and condition, ordinary wear and tear excepted and (b) maintain
with financially sound and reputable insurance companies insurance on all its
property in at least such amounts and against at least such risks (but
including in any event public liability, product liability and business
interruption) as are usually insured against in the same general area by
companies engaged in the same or a similar business.

7.6.          Inspection
of Property; Books and Records; Discussions. (a)   Keep proper books of records and account in
which full, true and correct entries in conformity with GAAP and all material
Requirements of Law shall be made of all dealings and transactions in relation
to its business and activities and (b) permit representatives of any
Lender to visit and inspect any of its properties and examine and make
abstracts from any of its books and records at any reasonable time during
regular business hours upon reasonable notice and as often as may reasonably be
desired and to discuss the business, operations, properties and financial and
other condition of the Group Members with responsible officers of the Group
Members and with their independent certified public accountants; provided
that, so long as no Default or Event of Default has occurred and is continuing,
such visits, inspections and examinations by any such 

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Lender shall be coordinated through the Administrative Agent and shall
not exceed two visits each year.

7.7.          Notices.
Promptly give notice to the Administrative Agent and each Lender of:

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

(b)           any (i) default or event of
default under any Contractual Obligation of any Group Member of which any Group
Member has knowledge or notice or (ii) litigation, request for information,
investigation or proceeding that may exist at any time between any Group Member
and any Governmental Authority of which any Group Member has knowledge or
notice, which in either case, if not cured or if adversely determined, as the
case may be, could reasonably be expected to have a Material Adverse Effect;

(c)           any litigation or proceeding
affecting any Group Member of which any Group Member has knowledge or notice (i) in
which the amount involved is $2,000,000 or more and not covered by insurance, (ii) in
which injunctive or similar relief is sought, which, if adversely determined,
could reasonably be expected to have a Material Adverse Effect or (iii) which
relates to any Loan Document;

(d)           the following events, as soon as
possible and in any event within 30 days after the Borrower knows
thereof:  (i) the occurrence of any
Reportable Event with respect to any Single Employer Plan or a Multiemployer
Plan, a failure to make any required contribution to a Plan, the creation of
any Lien in favor of the PBGC or a Plan or any withdrawal from, or the
termination, Reorganization or Insolvency of, any Multiemployer Plan, in each
case, if the Borrower would reasonably be expected to incur any material
liabilities as a result of such event or (ii) the institution of
proceedings or the taking of any other action by the PBGC or the Borrower or
any Commonly Controlled Entity or any Multiemployer Plan with respect to the
withdrawal from, or the termination, Reorganization or Insolvency of, any Plan
if the Borrower could reasonably be expected to incur any material liabilities
as a result of any such event; and

(e)           any development or event that has had
or could reasonably be expected to have a Material Adverse Effect.

Each notice pursuant to this Section 7.7 shall be
accompanied by a statement of a Responsible Officer setting forth details of
the occurrence referred to therein and stating what action the Borrower or the
relevant Subsidiary proposes to take with respect thereto.

7.8.          Environmental
Laws. (a)   Comply in all
material respects with, and use reasonable efforts to ensure compliance in all
material respects by all tenants and subtenants, if any, with, all applicable
Environmental Laws, and to obtain and comply in all material respects with and
maintain, and use reasonable efforts to ensure that all tenants and subtenants
obtain and comply in all material respects with and maintain, any and all
licenses, approvals, notifications, registrations or permits required by
applicable Environmental Laws.

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(b)  
Conduct and complete all investigations, studies, sampling and testing,
and all response, monitoring, remedial, removal and other actions required
under applicable Environmental Laws and promptly comply in all respects with
all orders and directives of all Governmental Authorities regarding
Environmental Laws; provided, however, that the Borrower shall
not be deemed in violation of this clause (b) if it promptly
challenges any such order or directive of any Governmental Authorities in a
manner consistent with Environmental Laws and pursues such challenge or
challenges diligently and the pendency of such challenges, in the aggregate,
could not reasonably be expected to have a Material Adverse Effect.

(c)  
Generate, use, treat, store, release, dispose of, and otherwise manage
Materials of Environmental Concern in a manner that would not reasonably be
expected to result in a material liability to, or to materially affect any real
property owned, leased or operated by, any Group Member; and take reasonable
efforts to prevent any other person from generating, using, treating, storing,
releasing, disposing of, or otherwise managing Hazardous Materials in a manner
that could reasonably be expected to result in a material liability to, or
materially affect any real property owned or operated by, any Group Member or
any offsite location to which any Group Member sent Materials of Environmental
Concern for disposal or treatment.

7.9.          Additional
Collateral, etc. (a)   With
respect to any property acquired after the Effective Date by the Borrower or
any Subsidiary Guarantor (other than (x) any property described in
paragraph (b), (c), (d), or (e) below, and (y) any property
subject to a Lien expressly permitted by Section 8.3(m) or 8.3(p) as
to which the Administrative Agent, for the benefit of the Lenders, does not
have a perfected Lien, promptly (i) execute and deliver to the
Administrative Agent such amendments to the Guarantee and Collateral Agreement
or such other documents as the Administrative Agent reasonably deems necessary
or advisable to grant to the Administrative Agent, for the benefit of the
Lenders, a security interest in such property and (ii) take all actions
necessary or advisable to grant to the Administrative Agent, for the benefit of
the Lenders, a perfected first priority security interest in such property,
including the filing of Uniform Commercial Code financing statements in such
jurisdictions reasonably as may be required by the Guarantee and Collateral
Agreement or by law or as may be requested by the Administrative Agent.

(b)  
With respect to any fee interest in any real property having a value
(together with improvements thereof) of at least $500,000 acquired after the
Effective Date by the Borrower or any Subsidiary Guarantor (other than any such
real property subject to a Lien expressly permitted by Section 8.3(m)),
including any such real property owned by a new Subsidiary at the time it
becomes subject to the requirements of Section 7.9(c) below, promptly
(i) execute and deliver a first priority Mortgage, in favor of the
Administrative Agent, for the benefit of the Lenders, covering such real
property, (ii) if requested by the Administrative Agent, provide the
Lenders with (x) title insurance covering such real property in an amount
at least equal to the purchase price of such real property (or such other
amount as shall be reasonably specified by the Administrative Agent) as well as
a current ALTA survey thereof, together with a surveyor’s certificate and (y) any
consents or estoppels reasonably deemed necessary or advisable by the
Administrative Agent in connection with such Mortgage, each of the foregoing in
form and substance reasonably satisfactory to the Administrative Agent and (iii) if
requested 

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by the Administrative Agent, deliver to the Administrative Agent legal
opinions relating to the matters described above, which opinions shall be in
form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent.

(c)  
With respect to any new Subsidiary (other than a Foreign Subsidiary or a
non-Wholly Owned Subsidiary) created or acquired after the Effective Date
(which, for the purposes of this paragraph (c), shall include (A) any
existing Subsidiary that ceases to be a Foreign Subsidiary, (B) any
non-Wholly Owned Subsidiary that becomes a Wholly Owned Subsidiary and (C) any
Foreign Subsidiary or non-Wholly Owned Subsidiary that provides a guarantee of
any Indebtedness (other than the Loans) of the Borrower or any Subsidiary
Guarantor that is a Domestic Subsidiary if the aggregate principal amount of
all such Indebtedness of the Borrower and such Subsidiary Guarantors guaranteed
by such Subsidiary exceeds $5,000,000), promptly (i) execute and deliver
to the Administrative Agent such amendments or supplements to the Guarantee and
Collateral Agreement as the Administrative Agent deems necessary or advisable
to grant to the Administrative Agent, for the benefit of the Lenders, a
perfected first priority security interest in the Capital Stock of such new
Subsidiary that is owned by the Borrower or any Subsidiary Guarantor, (ii) deliver
to the Administrative Agent the certificates representing such Capital Stock,
together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the relevant Group Member or take such other action with
respect to Pledged Stock of Foreign Subsidiaries necessary to perfect the first
priority security interest of the Administrative Agent in such Pledged Stock, (iii) cause
such new Subsidiary (A) to become a party to the Guarantee and Collateral
Agreement, (B) to take such actions necessary or advisable to grant to the
Administrative Agent for the benefit of the Lenders a perfected first priority
security interest in the Collateral described in the Guarantee and Collateral
Agreement owned by such new Subsidiary, including the filing of Uniform
Commercial Code financing statements in such jurisdictions as may be required
by the Guarantee and Collateral Agreement or by law or as may be requested by
the Administrative Agent and (C) to deliver to the Administrative Agent a
certificate of such Subsidiary, substantially in the form of Exhibit C,
with appropriate insertions and attachments, and (iv) if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

(d)  
With respect to any Domestic Subsidiary that does not become a
Subsidiary Guarantor pursuant to Section 7.9(c), promptly (i) execute
and deliver to the Administrative Agent such amendments or supplements to the
Guarantee and Collateral Agreement as the Administrative Agent deems necessary
or advisable to grant to the Administrative Agent, for the benefit of the
Lenders, a perfected first priority security interest in the Capital Stock of
such Subsidiary that is owned by the Borrower or any Subsidiary Guarantor, (ii) deliver
to the Administrative Agent the certificates representing such Capital Stock,
together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of the relevant Group Member, as the case may be, and take
such other action as may be necessary or, in the opinion of the Administrative
Agent, desirable to perfect the Administrative Agent’s security interest
therein, and (iii) if requested by the Administrative Agent, deliver to
the Administrative Agent 

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legal opinions relating to the matters described above, which opinions
shall be in form and substance, and from counsel, reasonably satisfactory to
the Administrative Agent.

(e)  
With respect to any Foreign Subsidiary, promptly (i) execute and
deliver to the Administrative Agent such amendments or supplements to the
Guarantee and Collateral Agreement as the Administrative Agent deems necessary
or advisable to grant to the Administrative Agent, for the benefit of the
Lenders, a perfected first priority security interest in the Capital Stock of
such Subsidiary that is directly owned by the Borrower or any Subsidiary
Guarantor (provided that in no event shall more than 65% of the total
outstanding voting Capital Stock of any such Subsidiary be required to be so
pledged), (ii) deliver to the Administrative Agent the certificates
representing such Capital Stock, together with undated stock powers, in blank,
executed and delivered by a duly authorized officer of the Borrower or relevant
Subsidiary Guarantor, or take such other action with respect to Pledged Stock
of Foreign Subsidiaries necessary to perfect the first priority security
interest of the Administrative Agent in such Pledged Stock, as the case may be,
and take such other action as may be necessary or, in the reasonable opinion of
the Administrative Agent, desirable to perfect the Administrative Agent’s
security interest therein, and (iii) if requested by the Administrative
Agent, deliver to the Administrative Agent legal opinions relating to the
matters described above, which opinions shall be in form and substance, and
from counsel, reasonably satisfactory to the Administrative Agent.

(f)  
With respect to any Intellectual Property, acquired by the Borrower or
any Subsidiary Guarantor that is not identified on the Perfection Certificate
delivered on the Effective Date, promptly (i) notify the Administrative
Agent of such Intellectual Property, (ii) execute and deliver to the
Administrative Agent such amendments or supplements to the Guarantee and
Collateral Agreement or such other documents as shall be necessary or as the
Administrative Agent reasonably requests to grant to the Administrative Agent,
for the benefit of the Lenders, a security interest in such Intellectual
Property and (iii) take all actions necessary or reasonably requested by
the Administrative Agent to perfect a first priority security interest in such
Intellectual Property.

7.10.        Further
Assurances. From time to time execute and deliver, or cause to be executed
and delivered, such additional instruments, certificates or documents, and take
all such actions, as the Administrative Agent may reasonably request for the
purposes of implementing or effectuating the provisions of this Agreement and
the other Loan Documents, or of more fully perfecting or renewing the rights of
the Administrative Agent and the Lenders with respect to the Collateral (or
with respect to any additions thereto or replacements or proceeds thereof or
with respect to any other property or assets hereafter acquired by the Borrower
or any Subsidiary which may be deemed to be part of the Collateral) pursuant
hereto or thereto. Upon the exercise by the Administrative Agent or any Lender
of any power, right, privilege or remedy pursuant to this Agreement or the
other Loan Documents which requires any consent, approval, recording
qualification or authorization of any Governmental Authority, the Borrower will
execute and deliver, or will cause the execution and delivery of, all
applications, certifications, instruments and other documents and papers that
the Administrative Agent or such Lenders may be required 

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to obtain from the Borrower or any of its Subsidiaries for such
governmental consent, approval, recording, qualification or authorization.

7.11.        Use
of Proceeds. Use the proceeds of the Loans (other than Tranche C Term
Loans and the Tranche D Term Loans), together with the proceeds of the issuance
of the Senior Subordinated Notes and the Convertible Senior Subordinated
Debentures, to finance the Tender Offer and the payments to be made in respect
of the Convertible Debentures Options Transactions, to repay amounts owing
under the Prior Credit Agreement, to pay fees and expenses related to the
Transactions and for general corporate purposes of the Borrower and its
Subsidiaries; provided that no more than $50,000,000 of the proceeds of
the Revolving Loans shall be used to finance the Tender Offer and the payments
to be made in respect of the Convertible Debentures Options Transactions, to
repay amounts owing under the Prior Credit Agreement and to pay fees and
expenses related to the Transactions. Use the proceeds of the Tranche C
Term Loans to finance the 2006 Acquisitions and otherwise for general corporate
purposes. Use the proceeds of the Tranche D Term Loans to repay the
Tranche B Term Loans (as defined in the Existing Credit Agreement), to pay
related costs and expenses and for general corporate purposes, including
repaying Revolving Loans. Use the Letters of Credit to support obligations
incurred by the Borrower and its Subsidiaries for general corporate purposes.

7.12.        Hedging
Arrangements. As promptly as practicable, and in any event within 90 days
after the Effective Date, the Borrower will enter into, and thereafter maintain
in effect for the periods specified below, one or more interest rate protection
agreements on such terms and with such parties as shall be reasonably
satisfactory to the Administrative Agent, the effect of which shall be that for
a period of at least two years after the Effective Date, at least 40% of the
Consolidated Total Indebtedness of the Borrower will be Indebtedness that
either bears interest at a fixed rate or the interest cost of which is hedged
pursuant to such interest rate protection agreements.

7.13.        Acknowledgement
and Consent. The Borrower will use best efforts to cause each Issuer (as
defined in the Collateral and Guarantee Agreement), if any, that is not a Loan
Party to execute and deliver to the Administrative Agent, within 30 days after
the Effective Date, an Acknowledgment and Consent in the form attached to
the Guarantee and Collateral Agreement.

7.14.        Lease Amendment. The
Borrower will use commercially reasonable efforts to deliver to the
Administrative Agent, within 90 days after the Effective Date, an amendment to
the Lease Agreement dated as of August 1, 2004 by and between the
Development Authority of Forsyth County and Scientific Games International, Inc.,
providing the Administrative Agent with the lender protections set forth in Section 10.3
of such Lease Agreement.

SECTION 8.  NEGATIVE COVENANTS

The Borrower hereby agrees that, so long as the
Commitments remain in effect, any Letter of Credit remains outstanding or any
Loan or other amount is owing to any Lender or 

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Agent hereunder, the Borrower shall not, and shall not permit any of
its Subsidiaries to, directly or indirectly:

8.1.          Financial
Condition Covenants.

(a)  Consolidated Leverage Ratio.
Permit the Consolidated Leverage Ratio as at the last day of any fiscal quarter
of the Borrower to exceed 3.75 to 1.00.

(b)  [Intentionally Omitted]

(c)  Consolidated Senior Debt Ratio.
Permit the Consolidated Senior Debt Ratio as at the last day of any fiscal
quarter of the Borrower to exceed 2.50 to 1.00.

(d)  Consolidated Interest Coverage
Ratio. Permit the Consolidated Interest Coverage Ratio for any period of
four consecutive fiscal quarters of the Borrower to be less than 3.50 to 1.00.

8.2.          Indebtedness.
Create, issue, incur, assume, become liable in respect of or suffer to exist
any Indebtedness, except:

(a)           Indebtedness of any Loan Party
pursuant to any Loan Document;

(b)           Indebtedness (i) of the Borrower
to any Subsidiary, (ii) of any Subsidiary Guarantor to the Borrower or any
other Subsidiary, (iii) of any Non-Guarantor Subsidiary to any other
Non-Guarantor Subsidiary and (iv) subject to Section 8.8(j), of any
Non-Guarantor Subsidiary to the Borrower or any Subsidiary Guarantor;

(c)           Guarantee Obligations incurred in the
ordinary course of business by the Borrower or any of its Subsidiaries of
obligations of the Borrower, any Subsidiary Guarantor and, subject to Section 8.8(j),
of any Non-Guarantor Subsidiary;

(d)           Indebtedness outstanding on the
Restatement Effective Date and listed on Schedule 8.2(d) and any
refinancings, refundings, renewals or extensions thereof (without increasing
the principal amount thereof, shortening the maturity thereof or decreasing the
weighted average life thereof);

(e)           Indebtedness of the Borrower or any
Subsidiary incurred to finance the acquisition, construction or improvement by
it of any fixed or capital assets in the ordinary course of business, including
Capital Lease Obligations and any Indebtedness assumed in connection with the
acquisition of any such assets or secured by a Lien on any such assets prior to
the acquisition thereof, and extensions, renewals and replacements of any such
Indebtedness that do not increase the outstanding principal amount thereof or
result in an earlier maturity date or decreased weighted average life thereof; provided
that (A) such Indebtedness is incurred prior to or within 90 days after
such acquisition or the completion of such construction or improvement and (B) the
aggregate principal amount of Indebtedness permitted by this clause 8.2(e) shall
not exceed $50,000,000 at any time outstanding;

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(f)            (i) Indebtedness of the
Borrower in respect of (x) the Senior Subordinated Notes in an aggregate
principal amount not to exceed the principal amount thereof initially issued
less the principal amount thereof repurchased or redeemed in accordance with this
Agreement, (y) the Convertible Senior Subordinated Debentures in an
aggregate principal amount not to exceed the principal amount thereof initially
issued (including pursuant to any exercise of the “green shoe” option granted
to the underwriters thereof in connection with such initial issuance) less the
principal amount thereof repurchased or redeemed in accordance with this
Agreement and (z) the Existing Subordinated Notes in an aggregate
principal amount not to exceed the aggregate principal amount outstanding after
giving effect to the repurchase pursuant to the Tender Offer on the Effective
Date less the principal amount thereof subsequently repurchased or redeemed in
accordance with this Agreement and (ii) Guarantee Obligations of any
Subsidiary Guarantor in respect of such Indebtedness, provided that such
Guarantee Obligations are subordinated to the same extent as the obligations of
the Borrower in respect of the related Senior Subordinated Securities;

(g)           additional Indebtedness of the
Borrower or any of the Subsidiary Guarantors in an aggregate principal amount
(for the Borrower and all Subsidiary Guarantors) not to exceed $50,000,000 at
any one time outstanding;

(h)           additional Indebtedness of
Non-Guarantor Subsidiaries in an aggregate principal amount (for all such
Subsidiaries) not to exceed $50,000,000 at any one time outstanding, provided
that, any such Indebtedness is non-recourse to the Borrower and the Subsidiary
Guarantors;

(i)            Indebtedness consisting of
indemnities relating to surety bonds issued in the ordinary course of business;

(j)            obligations pursuant to the “earnout”
provisions in respect of the Global Draw Acquisition and the Racing Venue
Acquisition;

(k)           obligations pursuant to the escrow
and post-closing adjustment provisions in respect of the EssNet Acquisition;

(l)            Permitted Additional Subordinated
Debt; and

(m)          Permitted Additional Senior
Indebtedness.

8.3.          Liens.
Create, incur, assume or suffer to exist any Lien upon any of its property,
whether now owned or hereafter acquired, except for:

(a)           Liens for taxes, assessments,
governmental charges or claims not yet due or that are being contested in good
faith by appropriate proceedings, provided that adequate reserves with
respect thereto are maintained on the books of the Borrower or its
Subsidiaries, as the case may be, in conformity with GAAP;

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(b)           carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s, statutory bank liens, rights of set-off or other
like Liens arising in the ordinary course of business that are not overdue for
a period of more than 30 days or that are being contested in good faith by
appropriate proceedings;

(c)           pledges or deposits in connection
with workers’ compensation, unemployment insurance and other social security
legislation and letters of credit issued in lieu of such deposits in the
ordinary course of business;

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

(e)           easements, rights-of-way,
restrictions and other similar encumbrances incurred in the ordinary course of
business that, in the aggregate, are not substantial in amount and that do not
in any case materially detract from the value of the property subject thereto
or materially interfere with the ordinary conduct of the business of the
Borrower or any of its Subsidiaries;

(f)            attachment or judgment Liens not
constituting an Event of Default under Section 9; provided that
such Lien is released within 60 days after the entry thereof;

(g)           Liens in favor of customs and revenue
authorities to secure payment of customs duties in connection with the
importation of goods that are not overdue for a period of more than
30 days or that are being contested in good faith by appropriate
proceedings; provided that, such Liens do not encumber any property
other than the goods subject to such customs duties;

(h)           zoning or similar laws or rights
reserved to or vested in any Governmental Authority to control or regulate the
use of any real property;

(i)            Liens securing obligations (other
than obligations representing Indebtedness for borrowed money) under operating,
reciprocal easement or similar agreements entered into in the ordinary course
of business of the Borrower and its Subsidiaries;

(j)            licenses of Intellectual Property
granted by the Borrower or any of its Subsidiaries which do not interfere in
any material respect with the ordinary conduct of the business of the Borrower
or such Subsidiary;

(k)           Liens securing Indebtedness of any
Non-Guarantor Subsidiary permitted by Section 8.2(b)(iii) and Section 8.2(h),
to the extent such Lien does not at any time encumber any property other than
the property of such Non-Guarantor Subsidiary;

(l)            Liens in existence on the Effective
Date listed on Schedule 8.3(l), securing Indebtedness permitted by Section 8.2(d),
provided that no such Lien is spread to cover 

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any additional property after the Effective
Date and that the amount of Indebtedness secured thereby is not increased;

(m)          Liens on fixed or capital assets
acquired, constructed or improved by the Borrower or any Subsidiary in the
ordinary course of business; provided that (i) such security
interests secure Indebtedness permitted by Section 8.2(e), (ii) such
security interests and the Indebtedness secured thereby are incurred prior to
or within 90 days after such acquisition or the completion of such construction
or improvement, and (iii) such security interests shall not apply to any
other property or assets of the Borrower or any Subsidiary;

(n)           Liens created pursuant to the
Security Documents;

(o)           any interest or title of a lessor
under any lease entered into by the Borrower or any other Subsidiary in the
ordinary course of its business and covering only the assets so leased;

(p)           Liens securing Indebtedness of the
Borrower or any Subsidiary Guarantors incurred pursuant to Section 8.2(g) so
long as neither (i) the aggregate outstanding principal amount of the obligations
secured thereby nor (ii) the aggregate fair market value (determined as of
the date such Lien is incurred) of the assets subject thereto exceeds (as to
the Borrower and all Subsidiaries) $35,000,000 at any one time;

(q)           Liens in favor of surety bond
providers securing performance and indemnity obligations of the Group Members
to such providers in connection with surety bonds issued in the ordinary course
of business to support performance obligations (not including Indebtedness) of
such Group Members under contracts entered into in the ordinary course of
business (any such surety bond, a “Secured Surety Bond”), provided
that, (i) to the extent that any such Lien becomes secured and perfected
on a first priority basis, the Borrower or any of its Subsidiaries shall cause,
within 75 days after the date that is the earlier of (A) the date that the
Borrower or any of its Subsidiaries becomes aware of a default under a contract
in respect of which a Secured Surety Bond has been issued or (B) the date
that the Borrower or any of its Subsidiaries becomes aware that such Lien has
become so perfected, either (x) such Lien to be released or terminated or (y) such
Lien to be junior to the Liens created pursuant to the Security Documents on
terms and conditions reasonably satisfactory to the Administrative Agent and (ii) the
terms of any such Lien shall provide, at the time provision is made for the
granting of such Lien, that such Lien shall only become effective upon the
occurrence of a default in respect of the related contract for which a Secured
Surety Bond has been issued or a bankruptcy or similar event with respect to
the relevant Group Members; and

(r)            any Lien existing on any property or
asset prior to the acquisition thereof by the Borrower or any Subsidiary or
existing on any property or asset of any Person that becomes a Subsidiary after
the date hereof prior to the time such Person becomes a Subsidiary; provided
that (i) such Lien is not created in contemplation of or in connection
with such acquisition or such Person becoming a Subsidiary, as the case may be,
(ii) such 

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Lien shall not apply to any other property or
assets of the Borrower or any Subsidiary, (iii) such Lien does not secure
Indebtedness, and (iv) such Lien shall secure only those obligations which
it secures on the date of such acquisition or the date such Person becomes a
Subsidiary, as the case may be.

8.4.          Fundamental
Changes. Enter into any merger, consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution), or Dispose of all or substantially all of its property or
business, except that:

(a)           any Subsidiary of the Borrower may be
merged or consolidated with or into the Borrower (provided that the
Borrower shall be the continuing or surviving Person) or with or into any
Subsidiary Guarantor (provided that the Subsidiary Guarantor shall be
the continuing or surviving corporation) or, subject to Section 8.8(j),
with or into any Foreign Subsidiary or Non-Guarantor Subsidiary; notwithstanding
the foregoing, any Non-Guarantor Subsidiary may be merged or consolidated with
another Non-Guarantor Subsidiary without limitation;

(b)           the Borrower or any Subsidiary of the
Borrower may Dispose of any or all of its assets (upon voluntary liquidation or
otherwise) to the Borrower or any Subsidiary Guarantor or, subject to Section 8.8(j),
any Non-Guarantor Subsidiary; notwithstanding the foregoing, any Non-Guarantor
Subsidiary may Dispose of any or all of its assets (upon voluntary liquidation
or otherwise) to another Non-Guarantor Subsidiary without limitation; and

(c)           any Subsidiary may liquidate, wind up
or dissolve after the Disposition of all of its assets as set forth in Section 8.4(b).

8.5.          Disposition
of Property. Dispose of any of its Property, whether now owned or hereafter
acquired, or, in the case of any Subsidiary, issue or sell any shares of such
Subsidiary’s Capital Stock to any Person, except:

(a)           Dispositions of obsolete or worn out
Property in the ordinary course of business;

(b)           Dispositions of inventory in the
ordinary course of business;

(c)           Dispositions permitted by Section 8.4(b);

(d)           the sale or issuance of any
Subsidiary’s Capital Stock to the Borrower or any Subsidiary Guarantor; and

(e)           (i) Dispositions of other
Property (other than any sale of less than all of the Capital Stock of any
Subsidiary then owned by the Group Members) or (ii) Dispositions of
minority interests in joint ventures or any Non-Guarantor Subsidiary, having a
fair market value not to exceed $40,000,000 in the aggregate for any fiscal
year of the Borrower, provided that (A) the aggregate amount of all
such Dispositions shall not 

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exceed $125,000,000 during the term of this
Agreement, (B) the consideration received in any such Disposition shall be
in an amount at least equal to the fair market value of such Property, (C) at
least 75% of the consideration received in any such Disposition shall be in
cash, provided that (1) the amount of such consideration required
to be paid in cash may be reduced to 50% so long as the remaining portion of
such consideration is comprised of debt or equity securities of the acquiring
Person and (2) Dispositions of other Property for an amount of up to
$2,000,000 in any fiscal year shall not be subject to this clause (C), and
(D) the Net Cash Proceeds of any such Dispositions, other than the 2006 JV
Contribution, shall be applied to prepay Term Loans to the extent required
pursuant to Section 4.2(c);

(f)            the sale or issuance of any
Non-Guarantor Subsidiary’s Capital Stock to any other Non-Guarantor Subsidiary
in compliance with any other applicable requirements of this Agreement
(including, to the extent applicable, Sections 8.8 and 8.10);

(g)           Dispositions pursuant to the Transfer
Transactions; and

(h)           the 2006 JV Contribution for consideration
consisting of a minority equity interest in the joint venture described on
Schedule 8.5.

8.6.          Restricted
Payments. Declare or make any Restricted Payment, except that:

(a)           any Subsidiary may make Restricted
Payments to the Borrower or any Subsidiary Guarantor;

(b)           the Borrower may repurchase (x) shares
of its Capital Stock to the extent that such repurchase is deemed to occur upon
the exercise of stock options to acquire the Borrower’s common stock or similar
arrangements to acquire common stock; provided that such repurchased
Capital Stock represent a portion of the exercise price thereof and provided,
further, that no cash is expended (or obligation to expend cash, other
than with respect to related withholding taxes, is incurred) by the Borrower or
any of its Subsidiaries pursuant to this clause (x), (y) shares of
the Borrower’s Capital Stock held by directors, executive officers, members of
management or employees of the Borrower or any of its Subsidiaries upon the
death, disability, retirement or termination of employment of such directors,
executive officers, members of management or employees, so long as (1) immediately
prior to and after giving effect to such repurchase, no Default or Event of
Default shall have occurred or is continuing and (2) the aggregate amount
of cash expended by the Borrower pursuant to this clause (y) does not
exceed $5,000,000 in any fiscal year of the Borrower and (z) shares of the
Borrower’s or any of its Subsidiary’s Capital Stock, so long as (1) immediately
prior to, and after giving effect to such repurchase, no Default or Event of
Default shall have occurred or is continuing, (2) after giving effect to
such repurchase (and any other such repurchases since the last day of the most
recently ended fiscal quarter) and any Indebtedness incurred in connection
therewith, the Borrower is in compliance with Section 8.1
(determined on a pro forma basis as if such repurchases had occurred, and any
such Indebtedness had been 

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incurred, on the last day of the most recent
fiscal quarter or, for purposes of Section 8.1(b),
on the first day of the most recently ended period of four consecutive fiscal
quarters), (3) at the time of the repurchase (and after giving effect
thereto), there shall be remaining at least $15,000,000 of Available Revolving
Commitments and (4) the aggregate amount expended for repurchases pursuant
to this clause (z) shall not exceed $50,000,000 (plus, if the
Consolidated Leverage Ratio as of the end of the most recently ended fiscal
quarter of the Borrower, determined on a pro forma basis as if all such
repurchases since such date and any related incurrences of Indebtedness had
occurred at the end of such quarter, shall be less than 1.75 to 1.00, the
Permitted Expenditure Amount) in the aggregate;

(c)           the Borrower may make Restricted
Payments pursuant to and in accordance with the Convertible Debentures Options
Transactions;

(d)           any Subsidiary may make Restricted
Payments ratably with respect to its Capital Stock; and

(e)           the Borrower may make dividend
payments payable solely in its Capital Stock.

8.7.          Payment
Blockage Notice. Give any notice to block or prohibit payments in respect
of any Senior Subordinated Securities pursuant to the subordination provisions
thereof, except with the prior written consent of the Required Lenders.

8.8.          Investments.
Make any advance, loan, extension of credit (by way of guaranty or otherwise)
or capital contribution to, or purchase any Capital Stock, bonds, notes,
debentures or other debt securities of, or any assets constituting a business
unit of, or make any other investment in, any Person (all of the foregoing, “Investments”),
except:

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

(b)           (i) Investments in Cash
Equivalents and (ii) other Investments in Foreign Currencies held in the
ordinary course of business in the aggregate amount not to exceed the Dollar
Equivalent of $5,000,000 at any time, which Investments would otherwise
constitute Cash Equivalents but for the sovereign debt rating of the country
issuing such Foreign Currency;

(c)           Guarantee Obligations permitted by Section 8.2;

(d)           loans and advances to employees of
any Group Member of the Borrower in the ordinary course of business (including
for travel, entertainment and relocation expenses) in an aggregate amount for
all Group Members not to exceed $2,000,000 at any one time outstanding;

(e)           Investments consisting of Capital
Expenditures otherwise permitted by this Agreement;

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(f)            Investments outstanding on the
Restatement Effective Date and listed on Schedule 8.8(f);

(g)           Investments consisting of non-cash
consideration received by the Borrower and its Subsidiaries in connection with
any Disposition of assets permitted under Section 8.5(e) in an
aggregate amount not to exceed $25,000,000 at any one time outstanding
(determined without regard to any write-downs or write-offs thereof);

(h)           Investments in assets useful in the
business of the Borrower and its Subsidiaries (of the type described in the
definition of the term Reinvestment Notice) made by the Borrower or any of its
Subsidiaries with the proceeds of any Reinvestment Deferred Amount, subject to
the limitations in clauses (j) and (k) in the case of any such
Investment in or by a Non-Guarantor Subsidiary with any such proceeds received
by the Borrower or a Subsidiary Guarantor;

(i)            intercompany Investments by any
Group Member in the Borrower or any Person that, prior to such Investment, is a
Subsidiary Guarantor; provided that such Investments shall be
subordinated to the Obligations in a manner reasonably satisfactory to the
Administrative Agent;

(j)            intercompany Investments by the
Borrower or any of its Subsidiaries in any Person, that, prior to such
Investment, is a Non-Guarantor Subsidiary (including, without limitation,
Guarantee Obligations with respect to obligations of any such Non-Guarantor
Subsidiary, loans made to any such Non-Guarantor Subsidiary and Investments
resulting from mergers with or sales of assets to any such Non-Guarantor
Subsidiary); provided that the aggregate amount of all such Investments
(including, without limitation, all such Guarantee Obligations) made by the
Borrower and the Subsidiary Guarantors (excluding those permitted by
clause (k) below) valued at cost without giving effect to any
write-down or write-off of any such Investments, shall not exceed at any time
outstanding during the term of this Agreement the sum of (i) $100,000,000,
plus (ii) the amount of such Investments made pursuant to the 2006
Acquisitions and the EssNet Acquisition, plus (iii) the amount of
intercompany loans made to Scientific Games Chile Limitada previously scheduled
as Indebtedness to third parties on Schedule 8.2(d), plus (iv) the
amount of such Investments made pursuant to the sale of any of Scientific Games
Chile Limitada, Scientific Games Latino America S.A. and their respective
subsidiaries to a Non-Guarantor Subsidiary, plus (v) the Peru
Investments, plus (vi) the amount of Capital Stock issued by the
Borrower in exchange for such Investment, plus (vii) the amount of
Capital Stock of the Borrower and Permitted Additional Subordinated Debt issued
to finance such Investment;

(k)           Investments consisting of
acquisitions of Capital Stock or assets pursuant to a Permitted Acquisition; provided
that (i) the aggregate amount of all such Investments in Non-Guarantor
Subsidiaries (excluding those (1) attributable to consummation of the 2006
Acquisitions and the EssNet Acquisition, (2) made with Capital Stock of
the Borrower and (3) financed with the issuance of Capital Stock of the
Borrower or Permitted Additional Subordinated Debt) shall not exceed
$200,000,000 at any time 

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during the term of this Agreement, and (ii) (A) immediately
prior to and after giving effect to any such Investment, no Default or Event of
Default shall have occurred or is continuing, (B) after giving effect
(determined on a pro forma basis as if such Investment had occurred on the last
day of the most recent fiscal quarter or, for purposes of Section 8.1(b),
on the first day of the most recently ended period of four consecutive fiscal
quarters) to such Investment, and all other such Investments made since the end
of the most recently ended fiscal quarter, and any Indebtedness incurred in
connection therewith, the Borrower is in compliance with Section 8.1 and (C) at
the time of such Investment (and after giving effect thereto), there shall be
remaining at least $15,000,000 of Available Revolving Commitments;

(l)            Investments in joint ventures (other
than pursuant to Section 8.8(j)) in an aggregate amount not to exceed
$50,000,000;

(m)          minority Investments in the securities
of any trade creditor, wholesaler, supplier or customer received pursuant to
any plan of reorganization or similar arrangement of such trade creditor,
wholesaler, supplier or customer, as applicable;

(n)           in addition to Investments otherwise
expressly permitted by this Section, Investments by the Borrower or any of its
Subsidiaries in an aggregate amount (valued at cost, without giving effect to
any write-down or write-off of any such Investments) not to exceed $15,000,000
during the term of this Agreement;

(o)           Investments that will fund
Supplemental Executive Retirement Plan liabilities as approved by the board of
directors of the Borrower;

(p)           intercompany Investments pursuant to
the Transfer Transactions;

(q)           Investments made by a deferred
compensation plan for employees of the Borrower and its Subsidiaries, to the
extent funded by contributions to such plan and permitted by the terms thereof;
and

(r)            the 2006 JV Contribution.

8.9.          Payments
and Modifications of Certain Debt Instruments. (a)  (i)  Make
or offer to make any optional or voluntary payment, prepayment, repurchase or
redemption of or otherwise optionally or voluntarily defease or segregate funds
with respect to the Permitted Additional Senior Indebtedness or Senior
Subordinated Securities, except Existing Subordinated Notes (either pursuant to
the Tender Offer or after the consummation of the Tender Offer); provided
that the Borrower may make or offer to make a payment, prepayment, repurchase
or redemption of or otherwise optionally or voluntarily defease or segregate
funds with respect to (i) the Permitted Additional Senior Indebtedness to
the extent permitted in clause (a) of the definition of the term “Permitted
Additional Senior Indebtedness” or (ii) the Permitted Additional Senior
Indebtedness or the Senior Subordinated Securities in an aggregate principal
amount not to exceed an amount equal to the then unused Permitted Expenditure
Amount at such time (after giving effect to any concurrent uses thereof) so
long as (x) no Default or Event of 

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Default shall have occurred and be continuing or would result
therefrom, (y) after giving effect to such payment, prepayment, repurchase
or redemption or such optional or voluntary defeasance or segregation of funds,
as applicable, and any related incurrence of Indebtedness, the Consolidated
Senior Debt Ratio on a pro forma basis would be at least 0.50 below the then
current level required by Section 8.1(c) as of the end of the most
recently ended fiscal quarter of the Borrower (determined as if all such
payments, prepayments, repurchases or redemptions or such optional or voluntary
defeasance or segregation of funds and related incurrences of Indebtedness
since the last day of such most recently ended fiscal quarter had occurred on
the last day of such most recently ended fiscal quarter) and (z) at the
time of such payment, prepayment, repurchase or redemption or such optional or
voluntary defeasance or segregation of funds (and after giving effect thereto),
as applicable, there shall be remaining at least $15,000,000 of Available
Revolving Commitments, (ii) amend, modify, waive or otherwise change, or
consent or agree to any amendment, modification, waiver or other change to, any
of the terms of the Permitted Additional Senior Indebtedness or the Senior
Subordinated Securities (other than any such amendment, modification, waiver or
other change that (A) would extend the maturity or reduce the amount of
any payment of principal thereof or reduce the rate or extend any date for
payment of interest thereon or would eliminate any covenant or make any
covenant less restrictive and (B) does not involve the payment of a
consent fee) or (iii) designate any Indebtedness (other than obligations
of the Loan Parties pursuant to the Loan Documents) as “Designated Senior
Debt” (or any other defined term having a similar purpose) for the purposes
of any Senior Subordinated Securities Indenture.

(b)  Make any cash payment in respect of
the principal amount of any Convertible Senior Subordinated Debentures that are
converted, unless (i) immediately prior to and after giving effect to any
such cash payment, no Default or Event of Default shall have occurred or is
continuing, (ii) after giving effect (determined on a pro forma basis as
if such payment had occurred on the last day of the most recent fiscal quarter
or, for purposes of Section 8.1(b), on the first day of the most recently
ended period of four consecutive fiscal quarters) to such cash payment, the
Borrower is in compliance with Section 8.1 and (iii) at the time of
such cash payment (and after giving effect thereto), there shall be remaining
at least $15,000,000 of Available Revolving Commitments.

8.10.        Transactions
with Affiliates. Enter into any transaction, including any purchase, sale,
lease or exchange of property, the rendering of any service or the payment of
any management, advisory or similar fees, with any Affiliate (other than the
Borrower or any Subsidiary Guarantor) unless such transaction is (a) otherwise
not prohibited by this Agreement, (b) in the ordinary course of business
of the relevant Group Member, and (c) upon fair and reasonable terms no
less favorable to the relevant Group Member, than it would obtain in a
comparable arm’s length transaction with a Person that is not an Affiliate; provided,
however, that the provisions of clauses (b) and (c) of this Section 8.10
shall not apply to any transaction (i) between a Non-Guarantor Subsidiary
and any other Non-Guarantor Subsidiary and (ii) between a Subsidiary
Guarantor and any Non-Guarantor Subsidiary to the extent such transaction is no
less favorable to such Subsidiary Guarantor than it would obtain in a
comparable arm’s length transaction with a Person that is not an Affiliate.

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8.11.        Sales
and Leasebacks. Enter into any arrangement with any Person providing for
the leasing by any Group Member of real or personal property that has been or
is to be sold or transferred by such Group Member to such Person or to any
other Person to whom funds have been or are to be advanced by such Person on
the security of such property or rental obligations of such Group Member, other
than any such arrangement that (i) if such arrangement is a Capital Lease
Obligation, is permitted pursuant to Section 8.2(e), (ii) the
consideration received from such arrangement is (A) solely cash
consideration to the extent of the fair market value of any Collateral so sold
or transferred, as determined in good faith by the Borrower’s board of
directors and (B) at least 75% in cash consideration to the extent of the
fair market value of the property (other than Collateral) so sold or
transferred, as determined in good faith by the Borrower’s board of directors, provided
that prior consent of the board of directors shall be obtained if such fair
market value was determined to be in excess of $1,000,000 and (iii) the
Net Cash Proceeds derived from such arrangement shall be applied toward the
prepayment of the Term Loans as set forth in Section 4.2(c), without
giving any Reinvestment Notice.

8.12.        Changes
in Fiscal Periods. Permit the fiscal year of the Borrower to end on a day
other than December 31 or change the Borrower’s method of determining
fiscal quarters.

8.13.        Negative
Pledge Clauses. Enter into or suffer to exist or become effective any
agreement that prohibits or limits the ability of any Group Member to create,
incur, assume or suffer to exist any Lien upon any of its property or revenues,
whether now owned or hereafter acquired, to secure its obligations under the
Loan Documents to which it is a party other than (a) this Agreement and
the other Loan Documents, (b) any agreements governing any Liens or
Capital Lease Obligations otherwise permitted under Sections 8.3(l), (m) and
(o), provided that, in each case, any prohibition or limitation shall only
be effective against the assets financed thereby, (c) to the extent
existing on the Effective Date, contracts with customers prohibiting Liens on
any equipment used in the performance of any such contracts set forth on
Schedule 8.13(c), (d) to the extent existing on the Effective Date,
contracts with customers prohibiting the assignment of such contracts or
proceeds owing thereunder set forth on Schedule 8.13(d) and (e) to
the extent contracts of the type described in clause (c) or (d) hereof
are entered into after the Effective Date, any such contracts (and any renewals
thereof) so long as the aggregate value of the assets subject to such
prohibitions, in each case as set forth on the most recent consolidated balance
sheet of the Borrower and its consolidated Subsidiaries in accordance with
GAAP, shall not exceed 5% of the aggregate value of all assets set forth on the
most recent consolidated balance sheet of the Borrower and its consolidated
Subsidiaries in accordance with GAAP.

8.14.        Clauses
Restricting Subsidiary Distributions. Enter into or suffer to exist or
become effective any consensual encumbrance or restriction on the ability of
any Subsidiary of the Borrower to (a) make Restricted Payments in respect
of any Capital Stock of such Subsidiary held by, or pay any Indebtedness owed
to, the Borrower or any other Subsidiary of the Borrower, (b) make loans
or advances to, or other Investments in, the Borrower or any other Subsidiary
of the Borrower or (c) transfer any of its assets to the Borrower or any
other Subsidiary of the Borrower, except for such encumbrances or restrictions
existing under or by 

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reason of (i) any restrictions existing under the Loan Documents
and (ii) any restrictions with respect to a Subsidiary imposed pursuant to
an agreement that has been entered into in connection with the Disposition of
all or substantially all of the Capital Stock or assets of such Subsidiary.

8.15.        Lines
of Business. Enter into any business, either directly or through any
Subsidiary, except for those businesses in which the Borrower and its
Subsidiaries are engaged on the date of this Agreement or that are reasonably
related thereto and business utilizing the same or similar technology.

8.16.        Hedge
Agreements. Enter into any Hedge Agreement, except (a) Hedge
Agreements entered into by the Borrower to hedge or mitigate risks to which the
Borrower or any Subsidiary has actual exposure (other than those in respect of
Capital Stock or the Senior Subordinated Securities), (b) Hedge Agreements
entered into in order to effectively cap, collar or exchange interest or
currency rates (from fixed to floating rates, from one floating rate to another
floating rate or otherwise) with respect to any interest-bearing liability or
investment of the Borrower or any Subsidiary (including any Senior Subordinated
Securities); provided that, at the time of and after giving effect to
any such Hedge Agreement, at least 40% of Consolidated Total Debt will be
comprised of Indebtedness effectively bearing interest at a fixed rate (taking
into account the effect of all Hedge Agreements, whether fixed to floating or
floating to fixed), (c) the Convertible Debentures Options Transactions
and (d) other Hedge Agreements entered into to hedge or mitigate risks to
which the Borrower or any Subsidiary has exposure that do not involve any risk
of payment required to be made by the Borrower or any Subsidiary (other than
any up-front payment made at the time such Hedge Agreement is entered into).

SECTION 9.  EVENTS OF DEFAULT

If any of the following events shall occur and be
continuing:

(a)           the Borrower shall fail to pay any
principal of any Loan or Reimbursement Obligation when due in accordance with
the terms hereof; or the Borrower shall fail to pay any interest on any Loan or
Reimbursement Obligation, or any other amount payable hereunder or under any
other Loan Document, within five days after any such interest or other amount
becomes due in accordance with the terms hereof; or

(b)           any representation or warranty made
or deemed made by any Loan Party herein or in any other Loan Document or that
is contained in any certificate, document or financial or other statement
furnished by it at any time under or in connection with this Agreement or any
such other Loan Document shall prove to have been inaccurate in any material
respect on or as of the date made or deemed made; or

(c)           (i)  any Loan Party shall
default in the observance or performance of any agreement contained in
clause (i) or (ii) of Section 7.4(a) (with respect to
the Borrower only), Section 7.7(a), Section 7.11 or Section 8 of
this Agreement or Sections 5.5 or 5.7(b) of the Guarantee and
Collateral Agreement or (ii) an “Event of Default” under and as defined in
any Mortgage shall have occurred and be continuing; or

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(d)           any Loan Party shall default in the
observance or performance of any other agreement contained in this Agreement or
any other Loan Document (other than as provided in paragraphs (a) through
(c) of this Section), and such default shall continue unremedied for a
period of 30 days after notice to the Borrower from the Administrative
Agent or the Required Lenders; or

(e)           any Group Member (i) defaults in
making any payment of any principal of any Material Indebtedness (including any
Guarantee Obligation, but excluding the Loans) on the scheduled or original due
date with respect thereto; or (ii) defaults in making any payment of any
interest on any Material Indebtedness beyond the period of grace, if any,
provided in the instrument or agreement under which such Material Indebtedness
was created; or (iii) defaults in the observance or performance of any
other agreement or condition relating to any Material Indebtedness or contained
in any instrument or agreement evidencing, securing or relating thereto, or any
other event shall occur or condition exist, the effect of which default or
other event or condition is to cause, or to permit the holder or beneficiary of
Material Indebtedness (or a trustee or agent on behalf of such holder or
beneficiary) to cause, with the giving of notice if required, Material
Indebtedness to become due prior to its stated maturity or to become subject to
a mandatory offer to purchase by the obligor thereunder or (in the case of any
Material Indebtedness constituting a Guarantee Obligation) to become payable;
or

(f)            (i) any Group Member shall
commence any case, proceeding or other action (A) under any existing or
future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part
of its assets, or any Group Member shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against any
Group Member any case, proceeding or other action of a nature referred to in
clause (i) above that (A) results in the entry of an order for
relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 60 days; or (iii) there
shall be commenced against any Group Member any case, proceeding or other
action seeking issuance of a warrant of attachment, execution, distraint or
similar process against all or any substantial part of its assets that results
in the entry of an order for any such relief that shall not have been vacated,
discharged, or stayed or bonded pending appeal within 60 days from the
entry thereof; or (iv) any Group Member shall take any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in,
any of the acts set forth in clause (i), (ii), or (iii) above; or (v) any
Group Member shall generally not, or shall be unable to, or shall admit in
writing its inability to, pay its debts as they become due; or

(g)           (i) any Person shall engage in
any “prohibited transaction” (as defined in Section 406 of ERISA or Section 4975
of the Code) involving any Plan, (ii) any 

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“accumulated funding deficiency” (as defined
in Section 302 of ERISA), whether or not waived, shall exist with respect
to any Plan or any Lien in favor of the PBGC or a Plan shall arise on the
assets of the Borrower or any Commonly Controlled Entity, (iii) a
Reportable Event shall occur with respect to, or proceedings shall commence to have
a trustee appointed, or a trustee shall be appointed, to administer or to
terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the
Required Lenders, likely to result in the termination of such Plan for purposes
of Title IV of ERISA, (iv) any Single Employer Plan shall terminate
for purposes of Title IV of ERISA, or (v) the Borrower or any
Commonly Controlled Entity shall, or in the reasonable opinion of the Required
Lenders is likely to, incur any liability in connection with a withdrawal from,
or the Insolvency or Reorganization of, a Multiemployer Plan; and in each case
in clauses (i) through (v) above, such event or condition,
together with all other such events or conditions, if any, would, in the
reasonable judgment of the Required Lenders, reasonably be expected to have a
Material Adverse Effect; or

(h)           one or more judgments or decrees
shall be entered against any Group Member involving in the aggregate a
liability (not paid or fully covered by insurance as to which the relevant
insurance company has acknowledged coverage) of $2,000,000 or more, and all
such judgments or decrees shall not have been vacated, discharged, stayed or
bonded pending appeal within 30 days from the entry thereof; or

(i)            any of the Security Documents shall
cease, for any reason, to be in full force and effect, or any Loan Party or any
Affiliate of any Loan Party shall so assert, or any Lien created by any of the
Security Documents shall cease to be enforceable and of the same effect and
priority purported to be created thereby; or

(j)            the guarantee contained in Section 2
of the Guarantee and Collateral Agreement shall cease, for any reason, to be in
full force and effect or any Loan Party or any Affiliate of any Loan Party
shall so assert; or

(k)           (i) any “person” or “group” (as
such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) shall
become, or obtain rights (whether by means or warrants, options or otherwise)
to become, the “beneficial owner” (as defined in Rules 13(d)-3 and
13(d)-5 under the Exchange Act), directly or indirectly, of more than 35%
of the outstanding common stock of the Borrower; (ii) the board of
directors of the Borrower shall cease to consist of a majority of Continuing
Directors; or (iii) a Specified Change of Control shall occur; or

(l)            any Senior Subordinated Securities
or the guarantees thereof shall cease, for any reason, to be validly subordinated
to the Obligations, as provided in any Senior Subordinated Securities
Indenture, or any Loan Party, any Affiliate of any Loan Party, the trustee in
respect of such Senior Subordinated Securities or the holders of at least 25%
in aggregate principal amount of such Senior Subordinated Securities shall so
assert in writing; or

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(m)          any Group Member defaults in the
observation or performance of any agreement or condition contained in one or
more contracts with respect to which Secured Surety Bonds have been issued
resulting in a notice or notices of claims submitted under the Secured Surety
Bonds and the aggregate amount of such claims exceed $20,000,000 at any time
outstanding and such defaults shall either (x) be continuing for a period
of 60 days or more or (y) have resulted in the provider of the relevant
Secured Surety Bonds taking any enforcement action in respect of the Lien
securing such Secured Surety Bond;

then, and in any such event, (A) if such event is
an Event of Default specified in clause (i) or (ii) of
paragraph (f) above with respect to the Borrower, automatically the
Commitments shall immediately terminate and the Loans hereunder (with accrued
interest thereon) and all other amounts owing under this Agreement and the
other Loan Documents (including all amounts of L/C Obligations, whether or not
the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) shall immediately become due and
payable, and (B) if such event is any other Event of Default, either or
both of the following actions may be taken: 
(i) with the consent of the Required Lenders, the Administrative
Agent may, or upon the request of the Required Lenders, the Administrative
Agent shall, by notice to the Borrower declare the Revolving Commitments to be
terminated forthwith, whereupon the Revolving Commitments shall immediately
terminate; and (ii) with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower, declare the Loans
hereunder (with accrued interest thereon) and all other amounts owing under
this Agreement and the other Loan Documents (including all amounts of L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters
of Credit shall have presented the documents required thereunder) to be due and
payable forthwith, whereupon the same shall immediately become due and payable.
With respect to all Letters of Credit with respect to which presentment for
honor shall not have occurred at the time of an acceleration pursuant to this
paragraph, the Borrower shall at such time deposit in a cash collateral account
opened by the Administrative Agent an amount equal to the aggregate then
undrawn and unexpired amount of such Letters of Credit. Amounts held in such
cash collateral account shall be applied by the Administrative Agent to the
payment of drafts drawn under such Letters of Credit, and the unused portion
thereof after all such Letters of Credit shall have expired or been fully drawn
upon, if any, shall be applied to repay other obligations of the Borrower
hereunder and under the other Loan Documents. After all such Letters of Credit
shall have expired or been fully drawn upon, all Reimbursement Obligations
shall have been satisfied and all other obligations of the Borrower hereunder
and under the other Loan Documents shall have been paid in full, the balance,
if any, in such cash collateral account shall be returned to the Borrower (or
such other Person as may be lawfully entitled thereto). Except as expressly
provided above in this Section, presentment, demand, protest and all other
notices of any kind are hereby expressly waived by the Borrower.

SECTION 10.  THE AGENTS

10.1.        Appointment.
(a)   Each Lender  and Issuing Lender hereby irrevocably
designates and appoints each Agent as the agent of such Lender under this
Agreement and the other Loan Documents, and each such Lender irrevocably
authorizes such Agent, in such 

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capacity, to take such action on its behalf under the provisions of
this Agreement and the other Loan Documents and to exercise such powers and
perform such duties as are delegated to such Agent by the terms of this
Agreement and the other Loan Documents, together with such actions and powers
as are reasonably incidental thereto. Notwithstanding any provision to the
contrary elsewhere in this Agreement, no Agent shall have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against any Agent.

(b)  
The Issuing Lender shall act on behalf of the Revolving Lenders with
respect to Letters of Credit issued or made under this Agreement and the
documents associated therewith. It is understood and agreed that the Issuing
Lender (i) shall have all of the benefits and immunities (x) provided
to the Agents in this Section 10 with respect to acts taken or omissions
suffered by the Issuing Lender in connection with Letters of Credit issued or
made under this Agreement and the documents associated therewith as fully as if
the term “Agents”, as used in this Section 10, included the Issuing Lender
with respect to such acts or omissions and (y) as additionally provided in
this Agreement and (ii) shall have all of the benefits of the provisions
of Section 10.7 as fully as if the term “Agents”, as used in Section 10.7,
included the Issuing Lender.

10.2.        Delegation
of Duties. Each Agent may execute any of its duties under this Agreement
and the other Loan Documents by or through agents or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to
such duties. Each Agent and any such agent or attorney-in-fact may perform any
and all of its duties and exercise its rights and powers through their
respective Related Parties. No Agent shall be responsible for the negligence or
misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

10.3.        Exculpatory
Provisions. Neither any Agent nor any of their respective Related Parties
shall be (i) liable for any action lawfully taken or omitted to be taken
by it or such Person under or in connection with this Agreement or any other
Loan Document (except to the extent that any of the foregoing are found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from its or such Person’s own gross negligence or willful misconduct)
or (ii) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by any Loan Party or any officer
thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for
in, or received by the Agents under or in connection with, this Agreement or
any other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document or
for any failure of any Loan Party a party thereto to perform its obligations
hereunder or thereunder. The Agents shall not be under any obligation to any
Lender to ascertain or to inquire as to the observance or performance of any of
the agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of any Loan Party.

10.4.        Reliance
by Agents. Each Agent shall be entitled to rely, and shall be fully
protected in relying, upon any instrument, writing, resolution, notice,
consent, certificate, 

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affidavit, letter, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including counsel to the
Borrower), independent accountants and other experts selected by such Agent. The
Administrative Agent may deem and treat the payee of any Note as the owner
thereof for all purposes unless a written notice of assignment, negotiation or
transfer thereof shall have been filed with the Administrative Agent. Each
Agent shall be fully justified in failing or refusing to take any action under
this Agreement or any other Loan Document unless it shall first receive such
advice or concurrence of the Required Lenders (or, if so specified by this
Agreement, all Lenders) as it deems appropriate or it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and
expense that may be incurred by it by reason of taking or continuing to take
any such action. The Agents shall in all cases be fully protected in acting, or
in refraining from acting, under this Agreement and the other Loan Documents in
accordance with a request of the Required Lenders (or, if so specified by this
Agreement, all Lenders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Loans.

10.5.        Notice
of Default. No Agent shall be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default hereunder unless such Agent has
received notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a “notice
of default.”  In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall
give notice thereof to the Lenders. The Administrative Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders (or, if so specified by this Agreement, all
Lenders or any other instructing group of Lenders specified by this Agreement);
provided that unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the best
interests of the Lenders.

10.6.        Non-Reliance
on Agents and Other Lenders. Each Lender expressly acknowledges that
neither the Agents nor any of their respective Related Parties have made any
representations or warranties to it and that no act by any Agent hereafter
taken, including any review of the affairs of a Loan Party or any affiliate of
a Loan Party, shall be deemed to constitute any representation or warranty by
any Agent to any Lender. Each Lender represents to the Agents that it has,
independently and without reliance upon any Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the 

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Loan Parties and their affiliates and made its own decision to make its
Loans hereunder and enter into this Agreement. Each Lender also represents that
it will, independently and without reliance upon any Agent or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Loan Parties and their affiliates. Except for notices,
reports and other documents expressly required to be furnished to the Lenders
by the Administrative Agent hereunder, the Administrative Agent shall not have
any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial
or otherwise), prospects or creditworthiness of any Loan Party or any affiliate
of a Loan Party that may come into the possession of the Administrative Agent
or any of its Related Parties.

10.7.        Indemnification.
The Lenders agree to indemnify each Agent in its capacity as such (to the
extent not reimbursed by the Borrower and without limiting the obligation of
the Borrower to do so), ratably according to their respective Aggregate
Exposure Percentages in effect on the date on which indemnification is sought
under this Section (or, if indemnification is sought after the date upon
which the Commitments shall have terminated and the Loans shall have been paid
in full, ratably in accordance with such Aggregate Exposure Percentages
immediately prior to such date), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever that may at any time (whether
before or after the payment of the Loans) be imposed on, incurred by or
asserted against such Agent in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Loan Documents or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by such Agent
under or in connection with any of the foregoing; provided that no
Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements that are found by a final and nonappealable decision
of a court of competent jurisdiction to have resulted from such Agent’s gross
negligence, bad faith or willful misconduct. The agreements in this Section shall
survive the payment of the Loans and all other amounts payable hereunder.

10.8.        Agent
in Its Individual Capacity. Each Agent and its affiliates may make loans
to, accept deposits from and generally engage in any kind of business with any
Loan Party as though such Agent were not an Agent. With respect to its Loans
made or renewed by it and with respect to any Letter of Credit issued or
participated in by it, each Agent shall have the same rights and powers under
this Agreement and the other Loan Documents as any Lender and may exercise the
same as though it were not an Agent, and the terms “Lender” and “Lenders” shall
include each Agent in its individual capacity.

10.9.        Successor
Administrative Agent. The Administrative Agent may resign as Administrative
Agent at any time upon notice to the Lenders, the Issuing Lenders and the
Borrower and may be removed at any time by the Required Lenders. Upon the
resignation or removal of the Administrative Agent under this Agreement and the
other Loan Documents, the Required Lenders shall appoint a successor agent for
the Lenders, which successor agent shall (unless an Event of Default under Section 9(a) or
Section 9(f) with respect to the Borrower shall have occurred and be
continuing) be subject to approval by the Borrower (which approval shall not be
unreasonably withheld or delayed), whereupon such successor agent shall succeed
to the rights, powers and duties of the Administrative Agent, and the term “Administrative
Agent” shall mean such successor agent effective upon such appointment and
approval, and the former 

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Administrative Agent’s rights, powers and duties as Administrative
Agent shall be terminated, without any other or further act or deed on the part
of such former Administrative Agent or any of the parties to this Agreement or
any holders of the Loans. If no successor agent has accepted appointment as
Administrative Agent by the date that is 30 days following a retiring
Administrative Agent’s notice of resignation, the retiring Administrative Agent
may, on behalf of the Lenders and the Issuing Lenders, appoint a successor
agent, which agent shall be a bank organized and doing business under the laws
of the United States or any state thereof, subject to supervision or
examination by any federal or state authority and having a total shareholder
equity aggregating at least $1,000,000,000 or an Affiliate of any such bank. Upon
the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Borrower to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After any
retiring Administrative Agent’s resignation or removal as Administrative Agent,
the provisions of this Section 10 and Section 11.5 shall inure to its
benefit and the benefit of its agents and their respective Related Parties as
to any actions taken or omitted to be taken by any of them while it was acting
under this Agreement and the other Loan Documents.

10.10.      Agents
Generally. Except as expressly set forth herein, no Agent shall have any
duties or responsibilities hereunder in its capacity as such.

10.11.      Lead
Arrangers and Syndication Agent. Each of the Lead Arrangers and the
Syndication Agent, in its capacity as such, shall have no duties or
responsibilities, and shall incur no liability, under this Agreement and other
Loan Documents.

SECTION 11.  MISCELLANEOUS

11.1.        Amendments
and Waivers. Neither this Agreement, any other Loan Document, nor any terms
hereof or thereof may be amended, supplemented or modified except in accordance
with the provisions of Section 2.4 or this Section 11.1; provided
that Incremental Term Loan Amendments pursuant to and in compliance with Section 2.4
shall not be subject to this Section 11.1. The Required Lenders and each
Loan Party party to the relevant Loan Document may, or, with the written
consent of the Required Lenders, the Administrative Agent and each Loan Party
party to the relevant Loan Document may, from time to time, (a) enter into
written amendments, consents, supplements or modifications hereto and to the
other Loan Documents for the purpose of adding any provisions to this Agreement
or the other Loan Documents or changing in any manner the rights of the Lenders
or of the Loan Parties hereunder or thereunder or (b) waive, on such terms
and conditions as the Required Lenders or the Administrative Agent, as the case
may be, may specify in such instrument, any of the requirements of this
Agreement or the other Loan Documents or any Default or Event of Default and
its consequences; provided, however, that no such waiver and no
such amendment, supplement or modification shall (i) forgive the principal
amount of any Loan or L/C Disbursement or extend the final scheduled date of
maturity of any Loan, extend the scheduled date of any amortization payment in
respect of any Term Loan, extend the required date of 

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reimbursement of any L/C Disbursement, reduce the stated rate of any
interest or fee payable hereunder (except (x) in connection with the
waiver of applicability of any post-default increase in interest rates, which
waiver shall be effective with the consent of the Majority Facility Lenders of
each adversely affected Facility and (y) that any amendment or
modification of defined terms used in the financial covenants in this Agreement
shall not constitute a reduction in the rate of interest or fees for purposes
of this clause (i)) or extend the scheduled date of any payment thereof,
or increase the amount or extend the expiration date of any Lender’s Revolving
Commitment under either Revolving Facility, in each case without the written
consent of each Lender directly affected thereby; (ii) eliminate or reduce
the voting rights of any Lender under this Section 11.1 without the
written consent of such Lender; (iii) reduce any percentage specified in
the definition of Required Lenders or any other provision of any Loan Document
specifying the number or percentage of Lenders required to waive, modify or
amend any rights thereunder or make any determination or grant any consent
thereunder, consent to the assignment or transfer by the Borrower of any of its
rights and obligations under this Agreement and the other Loan Documents,
release all or substantially all of the Collateral or release any material guarantee
under the Guarantee and Collateral Agreement or limit the applicable Loan Party’s
liability in respect of such guarantee, in each case without the written
consent of all Lenders; (iv) amend, modify or waive any condition
precedent to any extension of credit under a Revolving Facility set forth in Section 6.2
(including in connection with any waiver of an existing Default or Event of
Default) without the written consent of the Majority Facility Lenders with
respect to such Revolving Facility; (v) amend, modify or waive any
provision of Section 4.8 without the written consent of the Majority
Facility Lenders in respect of each Facility adversely affected thereby; (vi) reduce
the amount of Net Cash Proceeds required to be applied to prepay Term Loans
under this Agreement without the written consent of the Majority Facility
Lenders with respect to the Tranche C Term Loan Facility and the Majority
Facility Lenders with respect to the Tranche D Term Loan Facility; (vii) reduce
the percentage specified in the definition of Majority Facility Lenders with
respect to any Facility without the written consent of all Lenders under such
Facility; (viii) amend, modify or waive any provision of Section 10
without the written consent of each Agent adversely affected thereby; (ix) amend,
modify or waive any provision of Section 3.3 or 3.4 without the written
consent of the Swingline Lender; (x) change any provisions of any Loan
Document in a manner that by its terms adversely affects the rights in respect
of payments due to Lenders holding Loans of any Class differently than
those holding Loans of any other Class, without the written consent of Lenders
holding a majority in interest of the outstanding Loans and unused Commitments
of each affected Class; provided, further, that any waiver,
amendment or modification of this Agreement that by its terms affects the
rights or duties under this Agreement of one Class of Lenders (but not
other Classes) may be effected by an agreement or agreements in writing entered
into by the Borrower and requisite percentage in interest of the affected Class of
Lenders that would be required to consent thereto under this Section if
such Class of Lenders were the only Class of Lenders hereunder at the
time; or (xi) amend, modify or waive any provision of Sections 3.7 to
3.14 without the written consent of each Issuing Lender. Any such waiver and
any such amendment, supplement or modification shall apply equally to each of
the Lenders and shall be binding upon the Loan Parties, the Lenders, the Agents
and all future holders of the Loans; provided that no such agreement
shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent, the Issuing Lender or the Swingline Lender without the
prior written consent of the Administrative Agent, 

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the Issuing Lender or the Swingline Lender, as the case may be. In the
case of any waiver, the Loan Parties, the Lenders and the Agents shall be
restored to their former positions and rights hereunder and under the other
Loan Documents, and any Default or Event of Default waived shall be deemed to
be cured and not continuing; but no such waiver shall extend to any subsequent
or other Default or Event of Default, or impair any right consequent thereon. Notwithstanding
the foregoing, any provision of this Agreement may be amended by an agreement
in writing entered into by the Borrower, the Required Lenders and the
Administrative Agent (and, if their rights or obligations are affected thereby,
each Issuing Lender and the Swingline Lender) if (i) by the terms of such
agreement the Commitment of each Lender not consenting to the amendment
provided for therein shall terminate upon the effectiveness of such amendment
and (ii) at the time such amendment becomes effective, each Lender not
consenting thereto receives payment in full of the principal of and interest
accrued on each Loan made by it and all other amounts owing to it or accrued
for its account under this Agreement.

Notwithstanding the foregoing, this Agreement may be
amended (or amended and restated) with the written consent of the Required
Lenders, the Administrative Agent and the Borrower (a) to add one or more
additional credit facilities to this Agreement and to permit the extensions of
credit from time to time outstanding thereunder and the accrued interest and
fees in respect thereof to share ratably in the benefits of this Agreement and
the other Loan Documents with the Term Loans and Revolving Extensions of Credit
and the accrued interest and fees in respect thereof and (b) to include appropriately
the Lenders holding such credit facilities in any determination of the Required
Lenders and Majority Facility Lenders.

In addition, notwithstanding the foregoing, this
Agreement may be amended with the written consent of the Administrative Agent,
the Borrower and the Lenders providing the relevant Replacement Term Loans (as
defined below) to permit the refinancing of all outstanding Tranche C Term
Loans or Tranche D Term Loans (“Refinanced Term Loans”) with a
replacement term loan tranche hereunder (“Replacement Term Loans”), provided
that (a) the aggregate principal amount of such Replacement Term Loans
shall not exceed the aggregate principal amount of such Refinanced Term Loans, (b) the
Applicable Margin for such Replacement Term Loans shall not be higher than the
Applicable Margin for such Refinanced Term Loans, (c) the weighted average
life to maturity of such Replacement Term Loans shall not be shorter than the
weighted average life to maturity of such Refinanced Term Loans at the time of
such refinancing and (d) all other terms applicable to such Replacement
Term Loans shall be substantially identical to, or less favorable to the
Lenders providing such Replacement Term Loans than, those applicable to such
Refinanced Term Loans, except to the extent necessary to provide for covenants
and other terms applicable to any period after the latest final maturity of the
Tranche C Term Loans or Tranche D Term Loans, as applicable, in
effect immediately prior to such refinancing.

11.2.        Notices.
(a)   Except in the case of notices
and other communications expressly permitted to be given by telephone (and
subject to paragraph (b) below), all notices, requests and demands to or
upon the respective parties hereto to be effective shall be in writing
(including by telecopy), and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made when delivered, or three Business
Days after being deposited in 

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the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed as follows in the case of the Borrower and the Agents, and
as set forth in an Administrative Questionnaire delivered to the Administrative
Agent in the case of the Lenders, or to such other address as may be hereafter
notified by the respective parties hereto:

(i)            to the Borrower at 750 Lexington
Avenue, New York, NY 10022, Attention of Robert C. Becker (Telecopy No. (212)
754-2372);

(ii)           if to the Administrative Agent, to
JPMorgan Chase Bank, N.A., 1111 Fannin, 10th Floor, Houston, TX  77002, Attention of Loan and Agency Services
Group (Telecopy No. (713) 750-2892), with a copy to JPMorgan Chase
Bank, N.A., 277 Park Avenue, 3rd Floor, New York, NY 10172, Attention of Donald
Shokrian (Telecopy No. (646) 534-0574);

(iii)          if to JPMorgan Chase Bank, N.A., as
Issuing Lender, to 270 Park Avenue, 15th Floor, New York, NY 10017, Attention
of David Gugliotta (Telecopy No. (212) 270-3513), with a copy to
JPMorgan Chase Bank, N.A., 277 Park Avenue, 3rd Floor, New York, New York
10172, Attention of Donald Shokrian (Telecopy No. (646) 534-0574);

(iv)          if to the Swingline Lender, to
JPMorgan Chase Bank, N.A., 1111 Fannin, 10th Floor, Houston, TX  77002, Attention of Loan and Agency Services
Group (Telecopy No. (713) 750-2892), with a copy to JPMorgan Chase
Bank, N.A., 277 Park Avenue, 3rd Floor, New York, NY 10172, Attention of Donald
Shokrian (Telecopy No. (646) 534-0574); and; and

(v)           if to any other Lender or Issuing
Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire;

provided that any notice, request or
demand to or upon any Agent, the Issuing Lender or the Lenders shall not be
effective until received.

(b)  
Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall
not apply to notices pursuant to Sections 2, 3 and 4 unless otherwise agreed by
the Administrative Agent and the applicable Lender. The Administrative Agent or
the Borrower may, in their discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may
be limited to particular notices or communications.

11.3.        No
Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of any Agent or any Lender, any right, remedy, power or
privilege hereunder or under the other Loan Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The 

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rights, remedies, powers and privileges herein provided are cumulative
and not exclusive of any rights, remedies, powers and privileges that would
otherwise be provided by law. No waiver of any provision of any Loan Document
or consent to any departure by any Loan Party therefrom shall in any event be
effective unless the same shall be permitted by Section 11.1, and then
such waiver or consent shall be effective only in the specific instance and for
the purpose for which given. Without limiting the generality of the foregoing,
the making of a Loan or issuance of a Letter of Credit shall not be construed
as a waiver of any Default, regardless of whether the Administrative Agent, any
Lender or any Issuing Lender may have had notice or knowledge of such Default
at the time.

11.4.        Survival.
All representations and warranties made by the Loan Parties in the Loan
Documents and in the certificates or other instruments  delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, any Issuing
Lender or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended
hereunder, and shall continue in full force and effect as long as the principal
of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Commitments have not expired or terminated. The
provisions of Sections 4.9, 4.10, 4.11 and 11.5 and 11.12(e) and Section 10
shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof.

11.5.        Payment
of Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the
Syndication Agent, the Administrative Agent and the Lead Arrangers for all their
respective reasonable out-of-pocket costs and expenses incurred in
connection with the development, preparation and execution of, and any
amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including the reasonable fees and disbursements of counsel to such
Agent and filing and recording fees and expenses, with statements with respect
to the foregoing to be submitted to the Borrower prior to the Effective Date
(in the case of amounts to be paid on the Effective Date) and from time to time
thereafter (not less frequently than quarterly, if accrued and unbilled fees
exceed $15,000) as such Agent shall deem appropriate, (b) to pay or
reimburse each Lender, Issuing Lender and Agent for all its costs and
reasonable expenses incurred in connection with the enforcement or preservation
of any rights under this Agreement, the other Loan Documents and any such other
documents, including the fees and disbursements of counsel (including the
allocated fees and expenses of in-house counsel) to each Lender and Issuing
Lender and of counsel to such Agent, provided that, the fees and
disbursements of counsel to any such Lender shall only be paid or reimbursed to
the extent incurred in connection with a Default or an Event of Default, (c) to
pay, indemnify, and hold 

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each Lender, Issuing Lender and Agent harmless from, any and all recording
and filing fees and any and all liabilities with respect to, or resulting from
any delay in paying, stamp, excise and other taxes, if any, that may be payable
or determined to be payable in connection with the execution and delivery of,
or consummation or administration of any of the transactions contemplated by,
or any amendment, supplement or modification of, or any waiver or consent under
or in respect of, this Agreement, the other Loan Documents and any such other
documents, (d) to pay or reimburse each Issuing Lender for all its
reasonable out-of-pocket costs and expenses incurred in connection with the
conversion of any Multicurrency Letter of Credit denominated in a Foreign
Currency pursuant to the terms of this Agreement, and (e) to pay, indemnify,
and hold each Lender, Issuing Lender and Agent and their respective officers,
directors, employees, affiliates, agents, trustees, advisors and controlling
persons (each, an “Indemnitee”) harmless from and against any and all
other liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this Agreement, the other Loan Documents and any such other documents,
including any of the foregoing relating to the use of proceeds of the Loans or
the violation of, noncompliance with or liability under, any Environmental Law
applicable to the operations or current or former properties of any Group
Member or any of the Properties and the reasonable fees and expenses of legal
counsel in connection with claims, actions or proceedings by any Indemnitee
against any Loan Party under any Loan Document (all the foregoing in this
clause (e), collectively, the “Indemnified Liabilities”), provided
that the Borrower shall have no obligation hereunder to any Indemnitee with
respect to Indemnified Liabilities to the extent such Indemnified Liabilities
are found by a final and nonappealable decision of a court of competent
jurisdiction to have resulted from the gross negligence, bad faith or willful
misconduct of such Indemnitee. Without limiting the foregoing, and to the
extent permitted by applicable law, the Borrower agrees not to assert and to
cause its Subsidiaries not to assert, and hereby waives and agrees to cause its
Subsidiaries to waive, all rights for contribution or any other rights of
recovery with respect to all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature, arising
under or related to Environmental Laws, that any of them may have by statute or
otherwise against any Indemnitee, except to the extent resulting from the gross
negligence, bad faith or willful misconduct of such Indemnitee. All amounts due
under this Section 11.5 shall be payable not later than ten days after
written demand therefor. Statements payable by the Borrower pursuant to this Section 11.5
shall be submitted to Robert C. Becker (Telephone No.:  (212) 754-2233 and Telecopy No:  (212) 754-2372), at the address of the
Borrower set forth in Section 11.2, or to such other Person or address as
may be hereafter designated by the Borrower in a written notice to the
Administrative Agent. The agreements in this Section 11.5 shall survive
repayment of the Loans and all other amounts payable hereunder.

11.6.        Successors
and Assigns. (a)   The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby
(including any Affiliate of any Issuing Lender that issues any Letter of
Credit), except that (i) the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void) and (ii) no 

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Lender may assign or otherwise transfer its rights or obligations
hereunder except in accordance with this Section. Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
(including any Affiliate of any Issuing Lender that issues any Letter of
Credit), Participants (to the extent provided in paragraph (c) of
this Section) and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the Issuing Lenders and the
Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

(b)  (i)  Subject to the
conditions set forth in paragraph (b)(ii) below, any Lender may assign to
one or more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the
time owing to it) with the prior written consent (such consent not to be
unreasonably withheld or delayed) of:

(A)          the
Borrower; provided that no consent of the Borrower shall be required for
an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an
Event of Default has occurred and is continuing, any other assignee;

(B)           the
Administrative Agent; provided that no consent of the Administrative
Agent shall be required for an assignment of all or any portion of a Term Loan
to a Lender, an Affiliate of a Lender or an Approved Fund; and

(C)           each
Issuing Lender and Swingline Lender; provided that no consent of any
Issuing Lender or Swingline Lender shall be required for an assignment of all
or any portion of a Term Loan.

(ii)           Assignments shall
be subject to the following additional conditions:

(A)          no
assignment may be made to an Ineligible Assignee;

(B)           except
in the case of an assignment to a Lender or an Affiliate of a Lender or an
Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans of any Class, the amount of the Commitment or
Loans of the assigning Lender subject to each such assignment (determined as of
the date the Assignment and Assumption with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000 or, in
the case of Term Loans, $1,000,000, unless the Borrower and the Administrative
Agent otherwise consent; provided that no such consent of the Borrower
shall be required if an Event of Default has occurred and is continuing;

(C)           each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement, except
that this clause (C) shall not be construed to prohibit the
assignment of a proportionate part of all the assigning Lender’s rights and
obligations in respect of one Facility;

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(D)          the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500 to be paid by the assignor or assignee; provided that only
one such fee shall be payable in connection with simultaneous assignments to or
by two or more related Approved Funds; and

(E)           the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

(F)           in
the case of an assignment by a Lender to a CLO (as defined below) managed or
administered by such Lender or an Affiliate of such Lender, the assigning
Lender shall retain the sole right to approve any amendment, modification or
waiver of any provision of this Agreement and the other Loan Documents, provided
that the Assignment and Assumption between such Lender and such CLO may provide
that such Lender will not, without the consent of such CLO, agree to any
amendment, modification or waiver that (1) requires the consent of each
Lender directly affected thereby pursuant to the proviso to the second sentence
of Section 11.1 and (2) directly affects such CLO.

For purposes of this Section 11.6, the terms “Approved
Fund” and “CLO” have the following meanings:

“Approved Fund” means any Person (other than a natural
person) that is engaged in making, purchasing, holding or investing in bank
loans and similar extensions of credit in the ordinary course and that is
administered or managed by, or has as its principal investment advisor, a Lender,
an Affiliate of a Lender or an entity or an Affiliate of an entity that
administers or manages a Lender or is the principal investment advisor of a
Lender.

“CLO” means any entity (whether a corporation,
partnership, trust or otherwise) that is engaged in making, purchasing, holding
or otherwise investing in bank loans and similar extensions of credit in the
ordinary course of its business and is administered or managed by a Lender or
an affiliate of such Lender.

(iii)          Subject to
acceptance and recording thereof pursuant to paragraph (b)(iv) of
this Section, from and after the effective date specified in each Assignment
and Assumption the assignee thereunder shall be a party hereto and, to the
extent of the interest assigned by such Assignment and Assumption, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this
Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 4.9, 4.10, 4.11, 11.5 and 11.12(e)). Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this Section 11.6 shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section.

 98
 

 

(iv)          The Administrative
Agent, acting for this purpose as an agent of the Borrower, shall maintain at
one of its offices in The City of New York a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitment of, and principal amount of the
Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be
conclusive, and each of the Borrower, the Administrative Agent, the Issuing
Lender and the Lenders may treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower, any Issuing Lender and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

(v)           Upon its receipt of
a duly completed Assignment and Assumption executed by an assigning Lender and
an assignee, the assignee’s completed Administrative Questionnaire (unless the
assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written
consent to such assignment required by paragraph (b) of this Section,
the Administrative Agent shall accept such Assignment and Assumption and record
the information contained therein in the Register. No assignment shall be
effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph.

(c)  (i)  Any Lender may, without
the consent of the Borrower, the Administrative Agent, the Issuing Lenders or
the Swingline Lender, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrower, the Administrative
Agent, the Issuing Lenders and the other Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce the Loan Documents and to approve any amendment,
modification or waiver of any provision of the Loan Documents; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver (1) that requires the consent of each Lender directly affected
thereby pursuant to the proviso to the second sentence of Section 11.1  and (2) directly affects such
Participant. Subject to paragraph (c)(ii) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of
Sections 4.9, 4.10 and 4.11 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (c)(ii) of
this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 11.7 as though it were a Lender,
provided such Participant agrees to be subject to Section 11.7(a) as
though it were a Lender.

(ii)           A Participant shall
not be entitled to receive any greater payment under Section 4.9 or 4.11
than the applicable Lender would have been entitled to receive with respect 

 99
 

 

to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the applicable Borrower’s prior
written consent. A Participant that would be a Non-U.S. Lender if it were a
Lender shall not be entitled to the benefits of Section 4.11 unless the
applicable Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of such Borrower, to comply with Section 4.10(a) as
though it were a Lender.

(d)  
Any Lender may, without the consent of the Borrower or the
Administrative Agent, at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

(e)  
Notwithstanding the foregoing, any Conduit Lender may assign any or all
of the Loans it may have funded hereunder to its designating Lender without the
consent of the Borrower or the Administrative Agent and without regard to the
limitations set forth in Section 11.6(b). The Borrower, each Lender and
each Agent hereby confirms that it will not institute against a Conduit Lender
or join any other Person in instituting against a Conduit Lender any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding
under any state bankruptcy or similar law, for one year and one day after the
payment in full of the latest maturing commercial paper note issued by such
Conduit Lender; provided, however, that each Lender designating
any Conduit Lender hereby agrees to indemnify, save and hold harmless each
other party hereto for any loss, cost, damage or expense arising out of its
inability to institute such a proceeding against such Conduit Lender during
such period of forbearance.

11.7.        Adjustments;
Set-off. (a)   Except to
the extent that this Agreement expressly provides for payments to be allocated
to a particular Lender or to the Lenders under a particular Facility, if any
Lender (a “Benefitted Lender”) shall, at any time after the Loans and other
amounts payable hereunder shall immediately become due and payable pursuant to Section 9,
receive any payment of all or part of the Obligations owing to it, or receive
any collateral in respect thereof (whether voluntarily or involuntarily, by set-off,
pursuant to events or proceedings of the nature referred to in Section 9(f),
or otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of the Obligations owing to
such other Lender, such Benefitted Lender shall purchase for cash from the
other Lenders a participating interest in such portion of the Obligations owing
to each such other Lender, or shall provide such other Lenders with the
benefits of any such collateral, as shall be necessary to cause such Benefitted
Lender to share the excess payment or benefits of such collateral ratably with
each of the Lenders; provided, however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such
Benefitted Lender, such purchase shall be rescinded, and the purchase price and
benefits returned, to the extent of such recovery, but without interest.

(b)  
In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without prior notice to the Borrower, any
such notice being expressly 

 100
 

 

waived by the Borrower to the extent permitted by applicable law, upon
any amount becoming due and payable by the Borrower hereunder (whether at the
stated maturity, by acceleration or otherwise), to set off and appropriate and
apply against such amount any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or
the account of the Borrower. Each Lender agrees promptly to notify the Borrower
and the Administrative Agent after any such setoff and application made by such
Lender, provided that the failure to give such notice shall not affect
the validity of such setoff and application.

11.8.        Counterparts.
This Agreement may be executed by one or more of the parties to this Agreement
on any number of separate counterparts, and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. Delivery of
an executed signature page of this Agreement by facsimile transmission
shall be effective as delivery of a manually executed counterpart hereof. A set
of the copies of this Agreement signed by all the parties shall be lodged with
the Borrower and the Administrative Agent.

11.9.        Severability.
Any provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction.

11.10.      Integration.
This Agreement and the other Loan Documents represent the entire agreement of
the Borrower, the Agents and the Lenders with respect to the subject matter
hereof and thereof, and there are no promises, undertakings, representations or
warranties by any Agent or any Lender relative to subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.

11.11.      GOVERNING LAW. THIS AGREEMENT AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK.

11.12.      Submission
To Jurisdiction; Waivers. The Borrower hereby irrevocably and
unconditionally:

(a)           submits for itself and its property
in any legal action or proceeding relating to this Agreement and the other Loan
Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of
the courts of the State of New York, the courts of the United States for the
Southern District of New York, and appellate courts from any thereof;

(b)           consents that any such action or
proceeding may be brought in such courts and waives any objection that it may
now or hereafter have to the venue of any such 

 101
 

 

action or proceeding in any such court or
that such action or proceeding was brought in an inconvenient court and agrees
not to plead or claim the same;

(c)           agrees that service of process in any
such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to the Borrower at its address set forth in Section 11.2
or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;

(d)           agrees that nothing herein shall
affect the right to effect service of process in any other manner permitted by
law or shall limit the right to sue in any other jurisdiction; and

(e)           waives, to the maximum extent not
prohibited by law, any right it may have to claim or recover in any legal
action or proceeding referred to in this Section any special, exemplary,
punitive or consequential damages.

11.13.      Acknowledgments.
The 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)           no Agent, Issuing Lender or Lender
has any fiduciary relationship with or duty to the Borrower arising out of or
in connection with this Agreement or any of the other Loan Documents, and the
relationship between the Agents, the Issuing Lender and Lenders, on one hand,
and the Borrower, on the other hand, in connection herewith or therewith is
solely that of debtor and creditor; and

(c)           no joint venture is created hereby or
by the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Borrower and the Lenders.

11.14.      Releases
of Guarantees and Liens. (a)  Notwithstanding anything to the contrary
contained herein or in any other Loan Document, the Administrative Agent is
hereby irrevocably authorized by each Lender (without requirement of notice to
or consent of any Lender except as expressly required by Section 11.1) to
take any action requested by the 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 any Loan Document or that has
been consented to in accordance with Section 11.1 or (ii) under the
circumstances described in paragraph (b) below.

(b)  
At such time as the Loans, the Reimbursement Obligations and the other
obligations under the Loan Documents (other than obligations under or in
respect of Hedge Agreements) shall have been paid in full, the Commitments have
been terminated and no Letters of Credit shall be outstanding, the Collateral
shall be released from the Liens created by the Security Documents, and the
Security Documents and all obligations (other than those expressly 

 102
 

 

stated to survive such termination) of the Administrative Agent and
each Loan Party under the Security Documents shall terminate, all without
delivery of any instrument or performance of any act by any Person.

11.15.      Confidentiality.
Each Agent, Issuing Lender and Lender agrees to keep confidential all
non-public information provided to it by any Loan Party pursuant to this
Agreement that is designated by such Loan Party as confidential; provided
that nothing herein shall prevent any Agent, Issuing Lender or any Lender from
disclosing any such information (a) to any Agent, any other Lender or any
Lender Affiliate, (b) subject to an agreement to comply with the
provisions of this Section, to any actual or prospective Transferee or any
direct or indirect counterparty to any Hedge Agreement (or any professional
advisor to such counterparty), (c) to its employees, directors, agents,
attorneys, accountants and other professional advisors or those of any of its
affiliates, (d) upon the request or demand of any Governmental Authority, (e) in
response to any order of any court or other Governmental Authority or as may
otherwise be required pursuant to any Requirement of Law, (f) if requested
or required to do so in connection with any litigation or similar proceeding, (g) that
has been publicly disclosed, (h) to the National Association of Insurance
Commissioners or any similar organization or any nationally recognized rating
agency that requires access to information about a Lender’s investment
portfolio in connection with ratings issued with respect to such Lender, or (i) in
connection with the exercise of any remedy hereunder or under any other Loan
Document. Any Person required to maintain the confidentiality of information as
provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such information as such Person would accord to
its own confidential information.

11.16.      WAIVERS OF JURY TRIAL. THE BORROWER, THE AGENTS AND THE LENDERS HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

11.17.      [Reserved]

11.18.      Conversion
of Currencies. (a)  If, for the purpose of obtaining judgment in any
court, it is necessary to convert a sum owing hereunder in one currency into
another currency, each party hereto agrees, to the fullest extent that it may
effectively do so, that the rate of exchange used shall be that at which, in
accordance with normal banking procedures in the relevant jurisdiction, the
first currency could be purchased with such other currency on the Business Day
immediately preceding the day on which final judgment is given.

(b)  
The obligations of the Borrower in respect of any sum due to any party
hereto or any holder of the obligations owing hereunder (the “Applicable Creditor”)
shall, notwithstanding any judgment in a currency (the “Judgment Currency”)
other than the currency in which such sum is stated to be due hereunder (the “Agreement
Currency”), be discharged only to the extent that, on the Business Day
following receipt by the Applicable Creditor of any sum adjudged to be so due
in the Judgment Currency, the Applicable Creditor may in accordance 

 103
 

 

with normal banking procedures in the relevant jurisdiction purchase
the Agreement Currency with the Judgment Currency; if the amount of the
Agreement Currency so purchased is less than the sum originally due to the
Applicable Creditor in the Agreement Currency, the Borrower agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify the
Applicable Creditor against such loss. The obligations of the Borrower
contained in this Section 11.18 shall survive the termination of this
Agreement and the payment of all other amounts owing hereunder.

11.19.      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 which are treated as interest on such Loan under applicable
law (collectively the “Charges”), shall exceed the maximum lawful rate
(the “Maximum Rate”) which may be contracted for, charged, taken,
received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of
the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated
amount, together with interest thereon at the Federal Funds Effective Rate to
the date of repayment, shall have been received by such Lender.

 104

 

 

Annex A

PRICING GRID FOR REVOLVING LOANS

	
  Pricing Level

  	
   

  	
   

  	
   

  	
  Applicable Margin

  for Eurocurrency

  Loans

  	
   

  	
   

  	
   

  	
  Applicable Margin

  for Base Rate Loans

  	
   

  
	
  I

  	
   

  	
   

  	
   

  	
  2.00%

  	
   

  	
   

  	
   

  	
  1.00%

  	
   

  
	
  II

  	
   

  	
   

  	
   

  	
  1.75%

  	
   

  	
   

  	
   

  	
  0.75%

  	
   

  
	
  III

  	
   

  	
   

  	
   

  	
  1.50%

  	
   

  	
   

  	
   

  	
  0.50%

  	
   

  
	
  IV

  	
   

  	
   

  	
   

  	
  1.25%

  	
   

  	
   

  	
   

  	
  0.25%

  	
   

  

 

PRICING GRID FOR
TRANCHE C TERM LOANS AND TRANCHE D TERM LOANS

	
  Pricing Level

  	
   

  	
   

  	
   

  	
  Applicable Margin 

  for Eurocurrency Loans

  	
   

  	
   

  	
   

  	
  Applicable Margin 

  for Base Rate Loans

  	
   

  
	
  I

  	
   

  	
   

  	
   

  	
  1.50%

  	
   

  	
   

  	
   

  	
  0.50%

  	
   

  
	
  II

  	
   

  	
   

  	
   

  	
  1.25%

  	
   

  	
   

  	
   

  	
  0.25%

  	
   

  
	
  III

  	
   

  	
   

  	
   

  	
  1.00%

  	
   

  	
   

  	
   

  	
  0.00%

  	
   

  
	
  IV

  	
   

  	
   

  	
   

  	
  0.75%

  	
   

  	
   

  	
   

  	
  0.00%

  	
   

  

 

The Applicable Margin shall be adjusted, on and after
the first Adjustment Date (as defined below) occurring after the date which is
six months after the Effective Date (or, in the case of the Tranche C Term
Loans, the first Adjustment Date occurring after June 30, 2006), based on
changes in the Consolidated Leverage Ratio, with such adjustments to become
effective on the date (the “Adjustment Date”) that is three Business
Days after the date on which the relevant financial statements are delivered to
the Lenders pursuant to Section 7.1 and to remain in effect until the next
adjustment to be effected pursuant to this paragraph. If any financial
statements referred to above are not delivered within the time periods
specified in Section 7.1, then, until the date that is three Business Days
after the date on which such financial statements are delivered, the highest
rate set forth in each column of the Pricing Grid shall apply. On each
Adjustment Date, the Applicable Margin shall be adjusted to be equal to the
Applicable Margins opposite the Pricing Level determined to exist on such
Adjustment Date from the financial statements relating to such Adjustment Date.
For the purposes of the Applicable Margin for the Tranche C Term Loans, prior
to the date on which the financial statements specified in Section 7.1 for
the fiscal quarter ended June 30, 2006 are required to be delivered, the
Applicable Margin shall be determined by reference to Pricing Level II.

As used herein, the following rules shall govern
the determination of Pricing Levels on each Adjustment Date:

 

 

“Pricing Level I”  shall exist on an Adjustment Date if the
Consolidated Leverage Ratio for the relevant period is greater than or equal to
3.25 to 1.00.

“Pricing Level II”  shall exist on an Adjustment Date if the
Consolidated Leverage Ratio for the relevant period is less than 3.25 to 1.00 but greater than or equal to 2.50 to 1.00.

“Pricing Level III”  shall exist on an Adjustment Date if the
Consolidated Leverage Ratio for the relevant period is less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00.

“Pricing Level IV”  shall exist on an Adjustment Date if the
Consolidated Leverage Ratio for the relevant period is less than 2.00 to 1.00.

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