Document:

Exhibit 10.9

 

Execution Copy

 

FIRST AMENDMENT

 

FIRST
AMENDMENT, dated as of March 31, 2010 (this “Amendment”), to the
Revolving Credit and Guarantee Agreement, dated as of February 19, 2010
(the “Credit Agreement”),  among RDA HOLDING CO. (“Holdings”),
THE READER’S DIGEST ASSOCIATION, INC. (the “Borrower”), and certain
of the Borrower’s Subsidiaries (the “Guarantors”), the lenders from time
to time party thereto (the “Lenders”) and JPMORGAN CHASE BANK, N.A., as
administrative agent (the “Administrative Agent”).

 

W I T N E S S E T H:

 

WHEREAS,
Holdings, the Borrower, the Guarantors, the Lenders and the Administrative
Agent are parties to the Credit Agreement;

 

WHEREAS,
the Borrower has requested certain amendments to the Credit Agreement as more
fully set forth herein; and

 

WHEREAS,
the Administrative Agent and the Lenders are willing to agree to such
amendments but only on the terms and conditions contained in this Amendment.

 

NOW
THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto agree as follows:

 

1.             Defined Terms. Unless
otherwise defined herein, capitalized terms used herein which are defined in
the Credit Agreement (as amended by this Amendment) are used herein as therein
defined.

 

2.             Amendment to Section 1.01.
Section 1.01 of the Credit Agreement is amended as follows:

 

(a)  by inserting the following definitions
in their appropriate alphabetical order:

 

“Commitment” means Revolving Credit Commitment.

 

“First Amendment”
means the First Amendment, dated as of March 31, 2010, to this Agreement.

 

“First Amendment
Effective Date” has the meaning set forth in the First Amendment,
which date is March 31, 2010.

 

(b)  by amending the definition “Required
Lenders” to read in its entirety as follows:

 

“Required Lenders”
means, as of any date of determination, Lenders having more than 50% of the
aggregate Revolving Credit Commitments then in effect or, if the Revolving
Credit Commitments have been terminated, the aggregate Revolving Credit
Exposures then outstanding.

 

3.             Amendment to Section 2.03.
Section 2.03 of the Credit Agreement is amended by inserting the following
new paragraph (l):

 

“(l) Existing
Letters of Credit. Notwithstanding anything to the contrary herein,
on and after the First Amendment Effective Date, each letter of credit set
forth on Schedule 2.03 will

 

 

constitute
a Letter of Credit, and the issuer of such letter of credit shall constitute an
L/C Issuer, under this Agreement and for purposes hereof will be deemed to have
been issued on the First Amendment Effective Date.”

 

4.             Additional Amendments to the
Credit Agreement. The Credit Agreement is amended by making the changes
thereto indicated on Annex A hereto.

 

5.             Amendment to Schedules to the
Credit Agreement. The Credit Agreement is amended by adding Annex B hereto
as Schedule 2.03 to the Credit Agreement.

 

6.             Release of Cash Collateral.
JPMorgan Chase Bank, N.A., as the issuer of the letters of credit set forth on
Annex B hereto, agrees to release to the Borrower the cash collateral securing
such letters of credit in the amount of $7,930,965.07 one Business Day after
the First Amendment Effective Date.

 

7.             Conditions to Effectiveness of
this Amendment. (a) Pursuant to clause (ii) of the last paragraph
of Section 11.01 of the Credit Agreement, Section 2(b) hereof
shall become effective upon the date upon which this Amendment shall have been
executed and delivered by the Borrower and the Administrative Agent.

 

(b) Other
than as specified in Section 7(a) hereof, this Amendment shall become
effective upon the date (the “First Amendment Effective Date”) upon
which this Amendment shall have been executed and delivered by the Borrower,
the Administrative Agent and the Required Lenders (such term having the meaning
as amended by this Amendment).

 

8.             Representation and Warranties.
To induce the Administrative Agent and the Lenders to enter into this
Amendment, the Borrower hereby represents and warrants to the Administrative
Agent and each Lender that:

 

(a)  As of the First Amendment Effective
Date, and after giving effect to this Amendment, each of the representations
and warranties made by the Borrower in or pursuant to the Loan Documents is
true and correct in all material respects as if made on and as of such date (it
being understood and agreed that any representation or warranty that by its
terms is made as of a specific date shall be required to be true and correct in
all material respects only as of such specified date).

 

(b)  No Default or Event of Default has
occurred and is continuing after giving effect to the amendments contemplated
herein.

 

9.             Effect of Amendment. (a) This
Amendment shall not constitute an amendment or waiver of or consent to any
provision of the Credit Agreement or the other Loan Documents not expressly
referred to herein and shall not be construed as an amendment, waiver or
consent to any action on the part of the Borrower or any other Loan Party that
would require an amendment, waiver or consent of the Administrative Agent or
the Lenders except as expressly stated herein. Except as expressly amended
hereby, the provisions of the Credit Agreement and the other Loan Documents are
and shall remain in full force and effect in accordance with its terms.

 

(b) On
and after the First Amendment Effective Date, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of
like import, and each reference to the Credit Agreement in any other Loan
Document shall be deemed a reference to the Credit Agreement as amended hereby.
This Amendment shall constitute a “Loan Document” for all purposes of the
Credit Agreement and the other Loan Documents.

 

2

 

10.           Counterparts.
This Amendment may be executed by one or more of the parties to this Amendment 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 counterpart of a signature page by facsimile or by electronic
mail in portable document format (.pdf) shall be effective as delivery of a
manually executed counterpart.

 

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

 

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

 

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

 

[The remainder of this page is
intentionally left blank.]

 

3

 

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

 

 

	
   

  	
  THE READER’S
  DIGEST ASSOCIATION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas A.
  Williams

  
	
   

  	
   

  	
  Name:  Thomas A. Williams

  
	
   

  	
   

  	
  Title:  Senior Vice President and Chief Financial
  Officer

  

 

[The Reader’s
Digest First Amendment Signature Page]

 

 

	
   

  	
  JPMORGAN CHASE
  BANK, N.A., as Administrative Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tina Ruyter

  
	
   

  	
   

  	
  Name:  Tina Ruyter

  
	
   

  	
   

  	
  Title:  Executive Director

  

 

[The Reader’s
Digest First Amendment Signature Page]

 

 

	
   

  	
  Bank of America,
  N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephanie
  Vallillo

  
	
   

  	
   

  	
  Name:  Stephanie Vallillo

  
	
   

  	
   

  	
  Title:  Senior Vice President

  

 

[The Reader’s
Digest First Amendment Signature Page]

 

 

	
   

  	
  Credit Suisse
  AG, Cayman Islands Branch, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Doreen Barr

  
	
   

  	
   

  	
  Name:  Doreen Barr

  
	
   

  	
   

  	
  Title:  Director

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lynne-Marie
  Paquette

  
	
   

  	
   

  	
  Name:  Lynne-Marie Paquette

  
	
   

  	
   

  	
  Title:  Associate

  

 

[The Reader’s Digest
First Amendment Signature Page]

 

 

	
   

  	
  GOLDMAN SACHS
  CREDIT PARTNERS LP, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  Caditz

  
	
   

  	
   

  	
  Name:  Andrew Caditz

  
	
   

  	
   

  	
  Title:  Authorized Signatory

  

 

[The Reader’s
Digest First Amendment Signature Page]

 

 

Annex A

 

 

 

(d) any disposition of assets or issuance or sale of
Equity Interests of any Restricted Subsidiary in any transaction or series of
transactions with an aggregate fair market value of less than $5.0 million;

 

(e) any disposition of property or assets or issuance
of securities by (i) a Restricted Subsidiary to the Borrower,
(ii) the Borrower or a Restricted Subsidiary to another Subsidiary
Guarantor or (iii) a Restricted Subsidiary that is not a Subsidiary
Guarantor to another Restricted Subsidiary that is not a Subsidiary Guarantor;

 

(f) to the extent allowable under Section 1031
of the Internal Revenue Code of 1986, any exchange of like property (excluding
any boot thereon) for use in a Similar Business;

 

(g) the lease, assignment or sublease of any real or
personal property in the ordinary course of business;

 

(h) licenses or sub-licenses of intellectual
property in the ordinary course of business (other than any perpetual licensing
or exclusive licenses or sub-licenses or assignments of intellectual property
that have a material adverse effect on the value of the Collateral or the
ability of the Collateral Agent or the Secured Parties to realize the benefits
of, and intended to be afforded by, the Collateral);

 

(i) solely with respect to Section 7.08(a)(i)(A) and
(B) and Section 7.08(b)(i)(A) and (B), foreclosures on assets,
involuntary asset transfers or transfers by reason of eminent domain;

 

(j) sales of accounts receivable, or participations
therein, in connection with any Receivables Facility;

 

(k) any financing transaction with respect to
property built or acquired by the Borrower or any Restricted Subsidiary after
the Closing Date, including, without limitation, sale leasebacks and asset
securitizations permitted by this Agreement;

 

(l) any issuance or sale of Equity Interests in, or
Indebtedness or other securities of, an Unrestricted Subsidiary, including in
connection with any merger or consolidation;

 

(m) dispositions of accounts receivable in
connection with the compromise, settlement or collection thereof in the
ordinary course of business or in bankruptcy or similar proceedings and not in
connection with a Receivables Facility;

 

(n) the factoring by Foreign Subsidiaries at
maturity or collection of any accounts receivable pursuant to factoring programs
entered into in the ordinary course of business on customary market terms and
with respect to receivables of, and generated by, Foreign Subsidiaries;

 

(o) the sale, lease, assignment, transfer or
disposal of any property or assets in connection with any office move or
relocation in the ordinary course of business;

 

(p) solely for purposes of satisfying Section 7.08(a)(i)(A) or
Section 7.08(b)(i)(A), the sale, lease, assignment, transfer or disposal of
Investments in joint ventures to the extent required by, or made pursuant to
customary sell arrangements between, the joint venture parties set forth in
joint venture arrangements and similar binding arrangements;

 

(q) the sale, lease, assignment, transfer or
disposal of any and all of the art collections owned by the Borrower or its
Restricted Subsidiaries on the Closing Date.

 

3

 

distributions or other payments that are actually paid in cash (or to
the extent converted into cash) to the referent Person or a Restricted
Subsidiary thereof in respect of such period (without duplication for purposes
of Section 7.01 of any amounts included under
Section 7.01(a)(vii)(D)(1));

 

(6) solely for the purpose of determining the amount
available for Restricted Payments under Section 7.01(a)(vii)(A), the Net
Income for such period of any Restricted Subsidiary (other than any Subsidiary
Guarantor) shall be excluded if the declaration or payment of dividends or
similar distributions by that Restricted Subsidiary of its Net Income is not at
the date of determination wholly permitted without any prior governmental
approval (which has not been obtained) or, directly or indirectly, by the
operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule, or governmental regulation applicable to that
Restricted Subsidiary or its stockholders, unless such restriction with respect
to the payment of dividends or in similar distributions has been legally
waived; provided that Consolidated Net Income of the Borrower will be increased
by the amount of dividends or other distributions or other payments actually
paid in cash (or to the extent converted into cash) to the Borrower or a
Restricted Subsidiary thereof in respect of such period, to the extent not
already included therein;

 

(7) the effects of adjustments (including the
effects of such adjustments pushed down to the Borrower and the Restricted
Subsidiaries) in any line item of such Person’s consolidated financial
statements pursuant to GAAP resulting from the application of purchase
accounting in relation to any consummated acquisition, net of taxes, shall be
excluded;

 

(8) any net after-tax income (loss) from the early
extinguishment or cancellation of Indebtedness or obligations under Swap
Contracts or other derivative instruments shall be excluded;

 

(9) any impairment charge or asset write-off
pursuant to ASC No. 350—“Intangible Assets” and No. 360—“Impairments”
and the amortization of intangibles arising pursuant to ASC No. 805
(excluding any such impairment charge to the extent that it represents an
accrual of or reserve for cash expenditures in any future period) shall be
excluded;

 

(10) the amount of any expense will be excluded to
the extent a corresponding amount is received in cash by the Borrower and the
Restricted Subsidiaries from a Person other than the Borrower or any Restricted
Subsidiaries under any agreement providing for reimbursement of any such
expense, provided such reimbursement payment has not been included in determining
Consolidated Net Income (it being understood that if the amounts received in
cash under any such agreement in any period exceed the amount of expense in
respect of such period, such excess amounts received may be carried forward and
applied against expense in future periods);

 

(11) any non-cash compensation charge or expense
recorded from grants of stock appreciation or similar rights, stock options or
other rights to officers, directors or employees shall be excluded; and

 

(12) any increase in amortization or depreciation or
other non-cash charges or the impact of write-off of deferred revenues
resulting from the application of SOP 90-7 in relation to the Emergence
Transactions shall be excluded.

 

Notwithstanding the foregoing, for the purpose of
Section 7.01 only (other than Section 7.01(a)(vii)(D)), there shall
be excluded from Consolidated Net Income any income arising from any sale or
other disposition of Restricted Investments made by the Borrower and the
Restricted Subsidiaries, any repurchases and redemptions of Restricted
Investments from the Borrower and the Restricted Subsidiaries, any repayments
of loans and advances which constitute Restricted Investments by the Borrower
or any Restricted Subsidiary, any sale of the stock of an Unrestricted Subsidiary
or any distribution or dividend

 

12

 

“Default Rate”
means an interest rate equal to (a) the Base Rate plus (b) the
Applicable Rate applicable to Base Rate Loans plus (c) 2.0% per annum; provided that with respect to the
principal amount of any Eurodollar Rate Loan, the Default Rate shall be an
interest rate equal to the interest rate (including the Applicable Rate)
otherwise applicable to such Loan plus 2.0% per annum, in each case, to the
fullest extent permitted by applicable Laws.

 

“Defaulting Lender”
means any Lender that (a) has failed to pay over to the Administrative
Agent or any other Lender any amount required to be paid by it hereunder within
one (1) Business Day of the date when due, unless subsequently cured or
(b) has been deemed insolvent or become the subject of a bankruptcy or
insolvency proceeding.

 

“Designated
Noncash Consideration” means the fair market value of noncash
consideration received by the Borrower or a Restricted Subsidiary in connection
with an Asset Sale that is so designated as Designated Noncash Consideration
pursuant to an Officers’ Certificate, setting forth the basis of such
valuation, less the amount of cash or Cash Equivalents received in connection
with a subsequent sale of such Designated Noncash Consideration.

 

“Designated
Non-Debtors” means the Subsidiaries set forth on Schedule 1.01C.

 

“Designated
Preferred Stock” means preferred stock of the Borrower or any direct
or indirect parent thereof (in each case other than Disqualified Stock) that is
issued for cash (other than to a Restricted Subsidiary or an employee stock
ownership plan or trust established by the Borrower or any of its Subsidiaries)
and is so designated as Designated Preferred Stock, pursuant to an Officers’
Certificate, as the case may be, on the issuance date thereof, the cash
proceeds of which are excluded from the calculation set forth in
Section 7.01(a)(vii).

 

“DIP Credit
Agreement” means the Credit and Guarantee Agreement, dated as of August 26,
2009, among Holdings, the Borrower and certain of the Borrower’s Subsidiaries,
the lenders from time to time party thereto, the JPMorgan Chase Bank, N.A., as
administrative agent, and the other parties thereto, as amended, supplemented
or otherwise modified prior to the date hereof.

 

“Disposition”
or “Dispose” means the sale,
transfer, license, lease or other disposition (including any sale and leaseback
transaction and any sale of Equity Interests held in another Person) of any
property by any Person, including any sale, assignment, transfer or other
disposal, with or without recourse, of any notes or accounts receivable or any
rights and claims associated therewith; and, shall include any issuance by a
Person of any of its Equity Interests to another Person.

 

“Disqualified
Stock” means, with respect to any Person, any Capital Stock of such
Person which, by its terms, or by the terms of any security into which it is
convertible or for which it is putable or exchangeable, or upon the happening
of any event, matures or is mandatorily redeemable, other than as a result of a
change of control or asset sale, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof, other than as
a result of a change of control or asset sale, in whole or in part, in each
case prior to the date 91 days after the Maturity Date; provided, however, that
only the portion of Capital Stock that so matures or is mandatorily redeemable,
is so convertible or exchangeable or is so redeemable at the option of the
holder thereof prior to such date will be deemed to be Disqualified Stock; and,
provided further, that if such Capital Stock is issued to any plan for the
benefit of employees of the Borrower or its Subsidiaries or by any such plan to
such employees, such Capital Stock shall not constitute Disqualified Stock
solely because it may be required to be repurchased by the Borrower or any of
its Subsidiaries in order to satisfy applicable statutory or regulatory
obligations.

 

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

 

15

 

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

 

“Master Agreement” has the meaning specified in the definition of “Swap
Contract.”

 

“Material Adverse
Effect” means any event, development or circumstance that,
individually or in the aggregate, has had or could reasonably be expected to
have a material adverse effect on (a) the business, property, operations
or financial condition of Holdings and its Subsidiaries, taken as a whole, in
each case, other than such effects attributable to the commencement of the
Cases or the existence of prepetition claims and of defaults under claims to
the extent stayed by virtue of the commencement of the Cases, (b) the
business, property, operations or financial condition of Holdings, the Borrower
and the Restricted Subsidiaries, taken as a whole, in each case, other than
such effects attributable to the commencement of the Cases or the existence of
prepetition claims and of defaults under claims to the extent stayed by virtue
of the commencement of the Cases, or (c) the validity or enforceability of
this Agreement or any of the other Loan Documents or the rights and remedies of
the Administrative Agent and the Lenders hereunder or thereunder.

 

“Material Real
Property” means, on any date, any real property owned (but excluding
leases) by any Loan Party with a fair market value as of such date in excess of
$2,500,000.

 

“Maturity Date”
means the date that is three (3) years from the Closing Date. 

 

“Maximum Rate”
has the meaning specified in Section 11.10.

 

“Moelis”
means Moelis & Company LLC, and any successor thereto.

 

“Mortgage”
means, collectively, the deeds of trust, trust deeds, hypothecs and mortgages
made by the Loan Parties in favor or for the benefit of the Administrative
Agent on behalf of the Lenders substantially in the form of Exhibit G
(with such changes as may be customary to account for local Law matters or as
otherwise may be reasonably satisfactory to the Administrative Agent), and any
other mortgages executed and delivered pursuant to Section 6.11.

 

“Mortgaged
Properties” has the meaning specified in paragraph (f) of the
definition of Collateral and Guarantee Requirement.

 

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

 

“Net Award”
means any awards or proceeds in respect of any condemnation or other eminent
domain proceeding relating to any Collateral deposited in the Collateral
Account pursuant to the Collateral Documents.

 

“Net Income”
means, with respect to any Person, the net income (loss) of such Person,
determined in accordance with GAAP and before any reduction in respect of
preferred stock dividends.

 

“Net Insurance
Proceeds” means any awards or proceeds in respect of any casualty
insurance or title insurance claim relating to any Collateral deposited in the
Collateral Account pursuant to the Collateral Documents.

 

26

 

“Pari Passu
Payment Lien Priority” means, relative to specified Indebtedness and
other obligations, having equal Lien priority to the Senior Secured Notes and
the Guarantees, as the case may be, on the Collateral.

 

“Participant”
has the meaning specified in Section 11.07(e).

 

“Patriot Act”
means the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)).

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“Pension Plan”
means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA or Section 412 of the Code or
Section 302 of ERISA and is sponsored or maintained by any Loan Party or
any ERISA Affiliate or to which any Loan Party or any ERISA Affiliate
contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has
made contributions at any time during the immediately preceding five
(5) plan years.

 

“Permitted
Investments” means

 

(a) any Investment in the Borrower or any
Domestic Subsidiary or any Investment by a Restricted Subsidiary that is not a
Subsidiary Guarantor in a Restricted Subsidiary that is not a Subsidiary
Guarantor;

 

(b) any Investment in cash and Cash
Equivalents;

 

(c) any Investment by the Borrower or any
Domestic Subsidiary in a Person that is engaged in a Similar Business if as a
result of such Investment:

 

(1) such Person becomes a Domestic Subsidiary;
or

 

(2) such Person, in one transaction or a series of
related transactions, is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into,
the Borrower or a Domestic Subsidiary,

 

(d) any Investment by a Restricted Subsidiary
that is not a Subsidiary Guarantor in a Person that is engaged in a Similar Business
if as a result of such Investment:

 

(1) such Person becomes a Restricted Subsidiary; or

 

(2) such Person, in one transaction or a series of
related transactions, is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into,
the Borrower or a Restricted Subsidiary,

 

(e) any Investment in securities or other
assets not constituting cash or Cash Equivalents and received in connection
with an Asset Sale made pursuant to Section 7.08 or any other disposition of
assets not constituting an Asset Sale;

 

(f) any Investment existing or pursuant to
agreements or arrangements in effect on the Closing Date and any modification,
replacement, renewal or extension thereof; provided that the amount of

 

29

 

any such Investment may not be increased except (x) as required by
the terms of such Investment as in existence on the Closing Date or (y) as
otherwise permitted under this Agreement;

 

(g) any Investment acquired by the Borrower or
any Restricted Subsidiary:

 

(1) in exchange for any other Investment or accounts
receivable held by the Borrower or any such Restricted Subsidiary in connection
with or as a result of a bankruptcy, workout, reorganization or
recapitalization of the issuers of such other Investment or accounts
receivable; or

 

(2) as a result of a foreclosure by the Borrower or
any Restricted Subsidiary with respect to any secured Investment or other
transfer of title with respect to any secured Investment in default;

 

(i) obligations under Swap Contracts permitted under
Section 7.02(b)(i) and Section 7.02(b)(xii);

 

(j) loans and advances to officers, directors and
employees for business-related travel expenses, moving expenses and other
expenses, in each case incurred in the ordinary course of business and in
compliance with applicable law or to finance the purchase of Equity Interests
of the Borrower or any of its direct or indirect parents and in an amount not
to exceed $5.0 million at any one time outstanding;

 

(k) Investments the payment for which consists of
Equity Interests of the Borrower or any of its direct or indirect parents
(exclusive of Disqualified Stock of the Borrower); provided, however, that such
Equity Interests will not increase the amount available for Restricted Payments
under Section 7.01(a)(vii);

 

(l) guarantees of Indebtedness permitted under
Section 7.02; provided that if such Indebtedness can only be incurred by
the Borrower or Subsidiary Guarantors, then such guarantees are only permitted
by this clause to the extent made by the Borrower or a Subsidiary Guarantor,
and (ii) performance guarantees with respect to obligations incurred by
the Borrower or any of its Restricted Subsidiaries that are permitted by this Agreement;

 

(m) any transaction to the extent it constitutes an
Investment that is permitted and made in accordance with
Section 7.06(b) (except transactions described in clauses (ii), (iv),
(v), (vi), (viii) and (ix) of such Section 7.06(b));

 

(n) Investments consisting of purchases and
acquisitions of inventory, supplies, material or equipment in the ordinary
course of business or the non-exclusive licensing of intellectual property
pursuant to joint marketing arrangements with other Persons;

 

(o) additional Investments having an aggregate fair
market value, taken together with all other Investments made pursuant to this
clause (o) that are at that time outstanding, not to exceed the greater of
(x) $50.0 million and (y) 2.0% of Total Assets (with the fair market
value of each Investment being measured at the time made and without giving
effect to subsequent changes in value) plus the amount of any distributions,
dividends, payments or other returns in respect of such Investments (without
duplication for purposes of Section 7.01 of any amounts applied pursuant
to Section 7.01(a)(vii)); provided that if such Investment is in Capital
Stock of a Person that subsequently becomes a Restricted Subsidiary, such
Investment shall thereafter be deemed permitted under clause (a) or
(d) above and shall not be included as having been made pursuant to this
clause (o);

 

(p) Investments of a Restricted Subsidiary acquired
after the Closing Date or of an entity merged into the Borrower or merged into
or consolidated with a Restricted Subsidiary in accordance with

 

30

 

(17) Liens to secure any refinancing, refunding,
extension, renewal, modification or replacement (or successive refinancing,
refunding, extensions, renewals, modifications or replacements) as a whole, or
in part, of any Indebtedness secured by any Lien referred to in clauses (6),
(7), (8), (9), (10), (15), (19) and (22); provided, however, that (x) such
new Lien shall be limited to all or part of the same property that secured the
original Lien (plus improvements on such property and after acquired-property
that is affixed or incorporated into the property covered by such Lien),
(y) the Indebtedness secured by such Lien at such time is not increased to
any amount greater than the sum of (A) the outstanding principal amount
or, if greater, committed amount of the Indebtedness secured by a Lien
described under clauses (6), (7), (8), (9), (10), (15), (19) and (22) at the
time the original Lien became a Permitted Lien under this Agreement, and
(B) an amount necessary to pay any fees and expenses, including premiums
and defeasance costs, related to such refinancing, refunding, extension,
renewal or replacement and (z) the new Lien has no greater priority
relative to the Liens securing the Secured Obligations and the holders of the
Indebtedness secured by such Lien have no greater intercreditor rights relative
to the Secured Parties than the original Liens and the related Indebtedness;

 

(18) Liens to secure Indebtedness of any Foreign Subsidiary
permitted by Section 7.02 (b)(xxi) covering only the assets of such Foreign
Subsidiary;

 

(19) Liens securing the Senior Secured Notes
outstanding on the Closing Date and the Exchange Notes in respect thereof, the
guarantees relating to such Senior Secured Notes and Exchange Notes and any
obligations with respect to such Senior Secured Notes and Exchange Notes and
guarantees relating thereto;

 

(20) Liens on the Collateral in favor of any
collateral agent (including for the benefit of the Secured Parties) relating to
such collateral agent’s administrative expenses with respect to the Collateral;

 

(21) Liens securing judgments, attachments or awards
not giving rise to an Event of Default and notices of lis pendens and
associated rights related to litigation being contested in good faith by
appropriate proceedings and for which adequate reserves have been made;

 

(22) Liens on Collateral securing Pari Passu Payment
Lien Obligations or Junior Lien Indebtedness that has a stated maturity date
that is longer than the Indebtedness permitted to be incurred pursuant to
Section 7.02(a); provided that any such Indebtedness has Pari Passu Payment
Lien Priority or junior Lien priority (pursuant to the Junior Lien
Intercreditor Agreement) relative to the Secured Obligations and after giving
pro forma effect thereto, the Consolidated Secured Debt Ratio would be no
greater than 2.25 to 1.0;

 

(23) Any interest or title of a lessor, sublessor,
licensor or sublicensor in the property subject to any lease, sublease, license
or sublicense (other than any property that is the subject of a sale and
leaseback transaction);

 

(24) Liens on assets or securities deemed to arise
in connection with and solely as a result of the execution, delivery or
performance of contracts to sell such assets or securities if such sale is
otherwise permitted by this Agreement;

 

(25) Liens on Capital Stock of Unrestricted
Subsidiaries securing Indebtedness of such Unrestricted Subsidiaries (except to
the extent such Capital Stock is pledged as Collateral);

 

(26) Liens on (x) Collateral securing
Indebtedness incurred pursuant to, and obligations described in,
Section 7.02(b)(i); provided that any such Indebtedness (other than
Indebtedness that constitutes Secured Obligations) may be Bank Priority
Obligations, Pari Passu Payment Lien Obligations

 

33

 

or have junior Lien priority pursuant to the Junior Lien Intercreditor
Agreement relative to the Secured Obligations and (y) Liens on property
and assets of Foreign Subsidiaries securing Indebtedness of Foreign
Subsidiaries incurred pursuant to Section 7.02(b)(i).

 

(27) Liens on Collateral securing Junior Lien
Indebtedness that has a stated maturity date that is longer than the Revolving
Credit Loans and that is permitted to be incurred pursuant to Section 7.02(a);
provided that any such Liens are subject to the Junior Lien Intercreditor
Agreement;

 

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

 

(29) Liens arising out of conditional sale, title
retention, consignment or similar arrangements for the sale of goods entered
into by the Borrower or any of its Restricted Subsidiaries in the ordinary
course of business;

 

(30) Liens that are contractual rights of set-off
or, in the case of clause (i) or (ii) below, other bankers’ Liens
(i) relating to treasury, depository and cash management services or any
automated clearing house transfers of funds in the ordinary course of business
and not given in connection with the issuance of Indebtedness,
(ii) relating to pooled deposit or sweep accounts to permit satisfaction
of overdraft or similar obligations incurred in the ordinary course of business
of the Borrower or any Subsidiary or (iii) relating to purchase orders and
other agreements entered into with customers of the Borrower or any Restricted
Subsidiary in the ordinary course of business;

 

(31) Liens (i) of a collection bank arising
under Section 4-210 of the Uniform Commercial Code on items in the course
of collection, (ii) in favor of a banking institution arising as a matter
of law encumbering deposits (including the right of set-off) arising in the
ordinary course of business in connection with the maintenance of such accounts
and (iii) arising under customary general terms of the account bank in
relation to any bank account maintained with such bank and attaching only to
such account and the products and proceeds thereof;

 

(32) Liens arising by operation of law or contract
on insurance policies and the proceeds thereof to secure premiums thereunder,
and Liens, pledges and deposits in the ordinary course of business securing
liability for premiums or reimbursement or indemnification obligations of
(including obligations in respect of letters of credit or bank guarantees for
the benefit of) insurance carriers;

 

(33) Liens attaching solely to cash earnest money
deposits in connection with fully collateralized repurchase agreements that are
permitted by Section 7.02 that constitute temporary cash investments and
that do not extend to any assets other than those that are the subject of such
repurchase agreement;

 

(34) Liens solely on any cash earnest money deposits
made in connection with any letter of intent or purchase agreement permitted
hereunder;

 

(35) Liens on accounts receivable and related assets
incurred in connection with a Receivables Facility;

 

(36) Liens on deposits in the ordinary course of
business securing credit card programs maintained in the ordinary course of
business in an amount not to exceed $15.0 million (plus the amount, up to an
additional $20.0 million, of such deposits sought by JPMorgan Chase Bank, N.A.
or its subsidiaries (including Paymentech)) in the aggregate at any one time
outstanding;

 

34

 

(37) ground leases in respect of real property on
which facilities owned or leased by the Borrower or any of its Subsidiaries are
located and other Liens affecting the interest of any landlord (and any
underlying landlord) of any real property leased by the Borrower or any
Subsidiary;

 

(38) Liens on equipment (including printing presses
and data-processing equipment) owned by the Borrower or any Restricted
Subsidiary and located on the premises of any supplier, in the ordinary course
of business;

 

(39) Utility and other similar deposits made in the
ordinary course of business;

 

(40) Liens encumbering reasonable customary initial
deposits and margin deposits and similar Liens attaching to commodity trading
accounts or other brokerage accounts incurred in the ordinary course of
business, consistent with past practice and not for speculative purposes;

 

(41) Liens (i) on cash advances in favor of the
seller of any property to be acquired in an Investment permitted pursuant to
Permitted Investments to be applied against the purchase price for such
Investment, and (ii) consisting of an agreement to sell any property in an
Asset Sale permitted under Section 7.08, in each case, solely to the
extent such Investment or Asset Sale, as the case may be, would have been
permitted on the date of the creation of such Lien;

 

(42) Liens on cash collateral securing letters of
credit existing on the Emergence Date; and

 

(43) Liens securing Indebtedness and other
obligations in an aggregate principal amount not to exceed $5.0 million at any
one time outstanding.

 

For purposes of determining compliance with this
definition, (A) Permitted Liens need not be incurred solely by reference
to one category of Permitted Liens described above but are permitted to be
incurred in part under any combination thereof and (B) in the event that a
Lien (or any portion thereof) meets the criteria of one or more of the
categories of Permitted Liens described above, the Borrower shall, in its sole
discretion, classify (or reclassify) such item of Permitted Liens (or any
portion thereof) in any manner that complies with this definition and will only
be required to include the amount and type of such item of Permitted Liens in
one of the above clauses and such Lien will be treated as having been incurred
pursuant to only one of such clauses.

 

“Person”
means any individual, corporation, limited liability company, partnership,
joint venture, association, joint stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any
other entity.

 

“Plan”
means any “employee benefit plan” (as such term is defined in
Section 3(3) of ERISA) (other than a Multiemployer Plan, Foreign Plan
or Foreign Benefit Arrangement) established by any Loan Party or, with respect
to any such plan that is subject to Section 412 of the Code or
Section 302 or Title IV of ERISA, any ERISA Affiliate.

 

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

 

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

 

“preferred stock”
means any Equity Interest with preferential rights of payment of dividends or
upon liquidation, dissolution, or winding up.

 

35

 

payable under any Loan Document to any Agent or any Lender,
(i) the sum payable shall be increased as necessary so that after making
all required deductions (including deductions applicable to additional sums
payable under this Section 3.01), each of such Agent and such Lender
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions,
(iii) the Borrower shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable Laws, and
(iv) within thirty (30) days after the date of such payment (or, if
receipts or evidence are not available within thirty (30) days, as soon as
possible thereafter), the Borrower shall furnish to such Agent or Lender (as
the case may be) the original or a certified copy of a receipt evidencing
payment thereof to the extent such a receipt is issued therefor. If the
Borrower fails to pay any Taxes or Other Taxes when due to the appropriate
taxing authority or fails to remit to any Agent or any Lender the required
receipts or other required documentary evidence, the Borrower shall indemnify
such Agent and such Lender for any incremental taxes, interest or penalties
that may become payable by such Agent or such Lender arising out of such
failure. Notwithstanding anything to the contrary in this Section 3.01
(a), the Borrower shall not be required to increase the sum payable under any
Loan Document, or to indemnify any Lender or Agent, with respect to Taxes that
(i) in the case of a Foreign Lender (other than an assignee pursuant to a
request by the Borrower), are United States withholding taxes imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party hereto (or designates a new lending office), except to the extent that
such Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding taxes or
(ii) are withholding taxes that are excluded pursuant to Section 11.15(d).

 

(b)   In addition, the Borrower agrees to pay any and all present or
future stamp, court or documentary taxes and any other excise, property,
intangible or mortgage recording taxes or charges or similar levies which arise
from any payment made under any Loan Document or from the execution, delivery,
performance, enforcement or registration of, or otherwise with respect to, any
Loan Document (hereinafter referred to as “Other
Taxes”).

 

(c)   The Borrower agrees to indemnify each Agent and each Lender for
(i) the full amount of Taxes and Other Taxes (including any Taxes or Other
Taxes imposed or asserted by any jurisdiction on amounts payable under this
Section 3.01) paid by such Agent and such Lender and (ii) any
liability (including additions to tax, penalties, interest and expenses)
arising therefrom or with respect thereto, in each case whether or not such
Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority; provided such Agent or Lender, as the case may
be, provides the Borrower with a written statement thereof setting forth in
reasonable detail the basis and calculation of such amounts, which statement
shall be conclusive absent manifest error. Payment under this Section 3.01
(c) shall be made within thirty (30) days after the date such Lender or
such Agent makes a demand therefor.

 

(d)   If any Lender or Agent determines, in its reasonable discretion,
that it has received a refund in respect of any Taxes or Other Taxes as to
which indemnification or additional amounts have been paid to it by the
Borrower pursuant to this Section 3.01, it shall promptly remit such
refund (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section 3.01 with respect to the
Taxes or Other Taxes giving rise to such refund plus any interest included in
such refund by the relevant taxing authority attributable thereto) to the
Borrower, net of all reasonable out-of-pocket expenses of the Lender or Agent,
as the case may be and without interest (other than any interest paid by the
relevant taxing authority with respect to such refund); provided that the Borrower, upon the
request of the Lender or Agent, as the case may be, agrees promptly to return
such refund (plus any penalties, interest or other charges imposed by the
relevant taxing authority) to such party in the event such party is required to
repay such refund to the relevant taxing authority. Such Lender or Agent, as
the case may be, shall, at the Borrower’s request, provide the Borrower with a
copy of any notice of assessment or other evidence of the requirement to repay
such refund received from the relevant taxing authority (provided that such Lender or

 

58

 

(i)    declare or pay any dividend or make any distribution on account
of the Borrower’s or any Restricted Subsidiary’s Equity Interests, including
any dividend or distribution payable in connection with any merger or
consolidation other than:

 

(A)  dividends or distributions by the Borrower
payable in Equity Interests (other than Disqualified Stock) of the Borrower or
in options, warrants or other rights to purchase such Equity Interests; or

 

(B)   dividends or distributions by a Restricted
Subsidiary so long as, in the case of any dividend or distribution payable on
or in respect of any class or series of securities issued by a Restricted
Subsidiary other than a Wholly Owned Subsidiary, the Borrower or a Restricted
Subsidiary receives at least its pro rata share of such dividend or
distribution in accordance with its Equity Interests in such class or series of
securities;

 

(ii)   purchase, redeem, defease or otherwise acquire or retire for value
any Equity Interests of the Borrower or any direct or indirect parent of the
Borrower, including in connection with any merger or consolidation, held by
Persons other than the Borrower or any Subsidiary Guarantor;

 

(iii)  make any principal payment on, or redeem, repurchase, defease,
otherwise acquire or retire for value or give any irrevocable notice of
redemption with respect thereto in each case, prior to any scheduled repayment,
sinking fund payment or maturity, any Indebtedness, other than:

 

(A)  Pari Passu Payment Lien Obligations;

 

(B)   Priority Payment Lien Obligations;

 

(C)   Indebtedness permitted under clauses (iv), (vii), (viii), (ix),
and (x) of Section 7.02 (b);

 

(D)  the purchase, repurchase or other acquisition
of Indebtedness purchased in anticipation of satisfying a sinking fund
obligation, principal installment or final maturity, in each case due within
one year of the date of purchase, repurchase or acquisition;

 

(E)   Indebtedness incurred under revolving credit
facilities (other than payments, redemptions, repurchases, defeasances or other
acquisitions or retirements for value that are accompanied by termination or
reduction of commitments under such revolving credit facilities); or

 

(F)   the giving of an irrevocable notice of
redemption with respect to the transactions described in clauses (ii) and
(iii) of Section 7.01(a); or

 

(iv)  make any Restricted Investment

 

(all such payments and other
actions set forth in clauses (i) through (iv) above being
collectively referred to as “Restricted Payments”),
unless at the time of such Restricted Payment:

 

(v)   no Default or Event of Default shall have occurred and be
continuing or would occur as a consequence thereof;

 

(vi)  immediately after giving effect to such transaction on a pro forma
basis, the Borrower could incur $1.00 of additional Indebtedness under
Section 7.02 (a); and

 

80

 

 

(vii)         such Restricted Payment, together with the aggregate amount
of all other Restricted Payments made by the Borrower and the Restricted
Subsidiaries after the Closing Date (including Restricted Payments permitted by
clauses (i), (viii), (xii), (xiv) and (xvi) of paragraph (b) below, but
excluding all other Restricted Payments permitted by paragraph (b)), is less
than the sum of:

 

(A) the EBITDA of the
Borrower for the period (taken as one accounting period) from April 1, 2010, to
the end of the Borrower’s most recently ended fiscal quarter for which internal
financial statements are available at the time of such Restricted Payment, less
the product of 1.4 times Consolidated Interest Expense of the Borrower for the
same period; provided that if the amount under this clause (A) for any fiscal
quarter is less than zero, then the amount “built” under this clause (A) for
such fiscal quarter shall be deemed to be equal to zero, plus

 

(B) 100% of the aggregate
net cash proceeds and the fair market value, as determined in good faith by the
Board of Directors, of marketable securities or other property received by the
Borrower since immediately after the Closing Date from the issue or sale of:

 

(1) Equity Interests of the
Borrower, including Retired Capital Stock (as defined below), but excluding
cash proceeds and the fair market value, as determined in good faith by the
Board of Directors, of marketable securities or other property received from
the sale of:

 

I                    Equity Interests to members
of management, directors or consultants of the Borrower, any direct or indirect
parent of the Borrower and the Borrower’s Subsidiaries after the Closing Date
to the extent such amounts have been applied to Restricted Payments made in
accordance with clause (iv) of paragraph (b) below; and

 

II                Designated Preferred Stock;
or

 

(2) debt securities of the
Borrower that have been converted into such Equity Interests of the Borrower or
its direct or indirect parents;

 

provided, however, that this clause (B) shall not include the proceeds
from (w) Refunding Capital Stock (as defined below), (x) Equity Interests or
converted debt securities of the Borrower sold to a Restricted Subsidiary, or
to an employee stock ownership plan or other trust established by the Borrower
or a Restricted Subsidiary, (y) Disqualified Stock or debt securities that have
been converted into Disqualified Stock or (z) Excluded Contributions or
Designated Preferred Stock, plus

 

(C) 100% of the aggregate
amount of cash and the fair market value, as determined in good faith by the
Board of Directors, of marketable securities or other property contributed to
the capital of the Borrower following the Closing Date other than (i) net cash
proceeds contributed to the Borrower from the sale of Disqualified Stock or
Designated Preferred Stock, (ii) net cash proceeds received from Equity
Offerings to the extent used to redeem Senior Secured Notes, (iii) by any
Excluded Contributions and (iv) by contributions to the Borrower and the
Restricted Subsidiaries in connection with the Reorganization Plan, plus

 

(D) 100% of the aggregate
amount received in cash and the fair market value, as determined in good faith
by the Board of Directors, of marketable securities or other property received
by the Borrower or a Restricted Subsidiary by means of:

 

81

 

(1)  the sale or other disposition (other than to
the Borrower or a Restricted Subsidiary or to an employee stock ownership plan
or any trust established by the Borrower or any of its Subsidiaries) of
Restricted Investments made after the Closing Date by the Borrower and its
Restricted Subsidiaries and repurchases and redemptions of such Restricted
Investments from the Borrower and its Restricted Subsidiaries and repayments of
loans or advances which constitute Restricted Investments made after the
Closing Date by the Borrower and the Restricted Subsidiaries and (without
duplication of amounts included in EBITDA) any dividends or distributions
received by the Borrower or a Restricted Subsidiary on account of Restricted
Investments made after the Closing Date (other than in each case to the extent
the Investment in such Restricted Investment was made by the Borrower or a
Restricted Subsidiary pursuant to clause (xiv) of paragraph (b) below); or

 

(2)  the sale (other than to the Borrower or a
Restricted Subsidiary or to an employee stock ownership plan or any trust
established by the Borrower or any of its Subsidiaries) of the stock of an
Unrestricted Subsidiary (other than in each case to the extent the Investment
in such Unrestricted Subsidiary was made by the Borrower or a Restricted
Subsidiary pursuant to clause (x) of paragraph (b) below or to the extent such
Investment constituted a Permitted Investment) or a dividend or distribution
from an Unrestricted Subsidiary in each case after the Closing Date; plus

 

(E) in the case of the
redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary after
the Closing Date, the fair market value of the Investment in such Unrestricted
Subsidiary, as determined by the Board of Directors in good faith or if, in the
case of an Unrestricted Subsidiary, such fair market value may exceed $25.0
million, in writing by an Independent Financial Advisor, at the time of the
redesignation of such Unrestricted Subsidiary as a Restricted Subsidiary, other
than an Unrestricted Subsidiary to the extent the Investment in such
Unrestricted Subsidiary was made by the Borrower or a Restricted Subsidiary
pursuant to clause (xiv) of paragraph (b) below or to the extent such
Investment constituted a Permitted Investment.

 

(b) The foregoing provisions of Section 7.01(a) will
not prohibit:

 

(i)           the payment of any dividend or distribution within 60 days
after the date of declaration thereof, if at the date of declaration such
payment would have complied with the provisions of this Agreement or the
redemption, repurchase or retirement of Indebtedness if, at the date of any
irrevocable redemption notice such payment would have complied with the
provisions of this Agreement;

 

(ii)          the redemption, repurchase, retirement or other acquisition
of any Equity Interests of the Borrower (“Retired
Capital Stock”) or Indebtedness of the Borrower or a Subsidiary
Guarantor, or any Equity Interests of any direct or indirect parent of the
Borrower, in exchange for, or out of the proceeds of the substantially
concurrent sale (other than to the Borrower or a Restricted Subsidiary or to an
employee stock ownership plan or other trust established by the Borrower or a
Restricted Subsidiary) of, Equity Interests of the Borrower or any direct or
indirect parent of the Borrower to the extent contributed to the Borrower (in
each case, other than any Disqualified Stock) (“Refunding Capital Stock”);

 

(iii)         the redemption, repurchase or other acquisition or retirement
of Indebtedness of the Borrower or a Subsidiary Guarantor made by exchange for,
or out of the proceeds of the substantially concurrent sale of, new
Indebtedness of the Borrower or a Subsidiary Guarantor, as the case may be,
which is incurred in compliance with Section 7.02 so long as:

 

82

 

Indebtedness under Credit Facilities of Foreign Subsidiaries, (D) obligations
under Secured Hedge Agreements or (E) Cash Management Obligations; provided
that the aggregate principal amount of Indebtedness incurred under clauses (B),
(C), (D) and (E) outstanding at any one time shall not exceed $50.0 million
less the aggregate amount of all Net Proceeds of Asset Sales applied by the
Borrower or any Restricted Subsidiary since the Closing Date to permanently
repay any Indebtedness under Credit Facilities (and, in the case of revolving
credit Indebtedness, to effect a corresponding permanent reduction thereunder);

 

(ii)          the incurrence by the Borrower and any Subsidiary Guarantor
of Indebtedness represented by (i) the Senior Secured Notes issued on the Issue
Date (other than any Additional Notes), including any guarantee thereof, and
(ii) any Exchange Notes (including any guarantee thereof);

 

(iii)         Existing Indebtedness (other than Indebtedness described in
clauses (i) and (ii) of Section 7.02(b));

 

(iv)        Indebtedness (including Capitalized Lease Obligations),
Disqualified Stock and preferred stock incurred by the Borrower or any of the
Subsidiary Guarantors to finance the purchase, lease or improvement of property
(real or personal) or equipment that is used or useful in a Similar Business,
whether through the direct purchase of assets or the Capital Stock of any
Person owning such assets, in an aggregate principal amount which, when
aggregated with the principal amount of all other Indebtedness, Disqualified
Stock and preferred stock then outstanding and incurred pursuant to this clause
(iv) and including all Refinancing Indebtedness incurred to refund, refinance
or replace any other Indebtedness, Disqualified Stock and preferred stock
incurred pursuant to this clause (iv), does not exceed the greater of $20.0
million and 1.0% of Total Assets;

 

(v)         Indebtedness incurred by the Borrower or any Restricted
Subsidiary constituting reimbursement obligations with respect to letters of
credit issued in the ordinary course of business, including without limitation
letters of credit in respect of workers’ compensation claims, or other
Indebtedness with respect to reimbursement type obligations regarding workers’
compensation claims, health, disability or other employee benefits, or
property, casualty or liability insurance or self insurance obligations in the
ordinary course of business; provided, however, that upon the drawing of such
letters of credit or the incurrence of such Indebtedness, such obligations are
reimbursed within 30 days following such drawing or incurrence;

 

(vi)        Indebtedness arising from agreements of the Borrower or a
Restricted Subsidiary providing for and to the extent of indemnification,
adjustment of purchase price or similar obligations, in each case, incurred or
assumed in connection with the disposition or acquisition of any business,
assets or a Subsidiary, other than guarantees of Indebtedness incurred by any
Person acquiring all or any portion of such business, assets or a Subsidiary
for the purpose of financing such acquisition; provided that the maximum
assumable liability in respect of all such Indebtedness shall at no time exceed
the gross proceeds including noncash proceeds (the fair market value of such
noncash proceeds being measured at the time received and without giving effect
to any subsequent changes in value) actually received by the Borrower and the
Restricted Subsidiaries in connection with such disposition;

 

(vii)         Indebtedness of the Borrower to a Subsidiary Guarantor;
provided that any subsequent issuance or transfer of any Capital Stock or any
other event which results in any such Subsidiary Guarantor ceasing to be a
Subsidiary Guarantor or any other subsequent transfer of any such Indebtedness
(except to the Borrower or another Guarantor) shall be deemed, in each case to
be an incurrence of such Indebtedness not permitted by this clause (vii);

 

87

 

7.02(a) and Section 7.02(b)(ii) and (b)(iii) above, this clause (xv) and
clause (xvi) below, including additional Indebtedness, Disqualified Stock or
preferred stock incurred to pay premiums (including tender premiums),
defeasance costs and fees in connection therewith (the “Refinancing Indebtedness”) prior to its
respective maturity; provided, however, that such Refinancing Indebtedness:

 

(A)
(1) has a Weighted Average Life to Maturity at the time such Refinancing
Indebtedness is incurred which is not less than the lesser of (x) the remaining
Weighted Average Life to Maturity of the Indebtedness, Disqualified Stock or
preferred stock being refunded or refinanced and (y) the remaining Weighted
Average Life to Maturity of the Revolving Credit Loans and (2) does not have a
maturity date prior to the Maturity Date;

 

(B)
to the extent such Refinancing Indebtedness refinances (i) Indebtedness
subordinated or pari passu in right of payment to the Secured Obligations, such
Refinancing Indebtedness is subordinated or pari passu in right of payment to
the Secured Obligations at least to the same extent as the Indebtedness being
refinanced or refunded or (ii) Disqualified Stock or preferred stock, such
Refinancing Indebtedness must be Disqualified Stock or preferred stock,
respectively;

 

(C)
shall not be in an amount in excess the principal amount (or accreted value, if
applicable) or liquidation preference of, plus any accrued and unpaid interest
on, the Indebtedness being so refunded or refinanced, plus the amount of any
premium (including tender premiums), defeasance costs and any related fees and
expenses;

 

(D)
shall not have a final maturity date prior to the final maturity date of the
Indebtedness, Disqualified Stock or preferred stock being refunded or refinanced;
and

 

(E)
shall not include:

 

(1)
Indebtedness, Disqualified Stock or preferred stock of a Restricted Subsidiary
that is not a Subsidiary Guarantor that refinances Indebtedness, Disqualified
Stock or preferred stock of the Borrower or a Subsidiary Guarantor; or

 

(2)
Indebtedness, Disqualified Stock or preferred stock of the Borrower or a
Restricted Subsidiary that refinances Indebtedness, Disqualified Stock or
preferred stock of an Unrestricted Subsidiary;

 

(xvi)                (i)            Indebtedness,
Disqualified Stock or preferred stock of Persons incurred and outstanding on or
prior to the date such Person was acquired by the Borrower or any Restricted
Subsidiary or merged into the Borrower or a Restricted Subsidiary in accordance
with the terms of this Agreement and (ii) Indebtedness of the Borrower or any
Restricted Subsidiary incurred in connection with or in contemplation of, or to
provide all or any portion of the funds or credit support utilized to
consummate, the acquisition by the Borrower or such Restricted Subsidiary of
property used or useful in a Similar Business (whether through the direct
purchase of assets or the purchase of Capital Stock of, or merger or
consolidation with, any Person owning such assets); provided that in the case
of both (i) and (ii), the Borrower would be permitted to incur at least $1.00
of additional Indebtedness pursuant to the Consolidated Leverage Ratio test set
forth in paragraph (a) of this Section;

 

(xvii)       Indebtedness arising from the honoring by
a bank or other financial institution of a check, draft or similar instrument
drawn against insufficient funds in the ordinary course of business; provided
that such Indebtedness is extinguished within five business days of its
incurrence;

 

89

 

(xviii)      Indebtedness consisting of promissory
notes issued by the Borrower or any of its Restricted Subsidiaries to any
current or former employee, director or officer of the Borrower, any of its
Restricted Subsidiaries or any of its direct or indirect parents (or permitted
transferees, assigns, estates, or heirs of such employee, director or officer),
to finance the purchase or redemption of Equity Interests of the Borrower or
any of its direct or indirect parent companies permitted by Section 7.01;
provided further, that such indebtedness must be expressly subordinated in
right of payment to the Secured Obligations;

 

(xix)         Indebtedness of the Borrower or any Restricted Subsidiary
consisting of (i) the financing of insurance premiums or (ii) take-or-pay
obligations contained in supply arrangements, in each case, in the ordinary
course of business;

 

(xx)          Indebtedness, Disqualified Stock and preferred stock of the
Borrower and the Restricted Subsidiaries not otherwise permitted hereunder in
an aggregate principal amount or liquidation preference, which when aggregated
with the principal amount and liquidation preference of all other Indebtedness,
Disqualified Stock and preferred stock then outstanding and incurred pursuant
to this clause (xx), does not at any one time outstanding exceed $35.0 million;
and

 

(xxi)         Indebtedness of Foreign Subsidiaries in an aggregate amount
not to exceed $5.0 million at any time outstanding.

 

(c)  For purposes of determining compliance with
this Section 7.02 in the event that an item of Indebtedness, Disqualified Stock
or preferred stock (or any portion thereof) meets the criteria of more than one
of the categories of permitted Indebtedness, Disqualified Stock or preferred
stock described in clauses (b)(i) through (b)(xxi) above or is entitled to be
incurred pursuant to paragraph (a) of this Section, the Borrower shall, in its
sole discretion, classify or reclassify such item of Indebtedness, Disqualified
Stock or preferred stock (or any portion thereof) in any manner that complies
with this Section and such item of Indebtedness, Disqualified Stock or
preferred stock will be treated as having been incurred pursuant to only one of
such clauses or pursuant to paragraph (a) of this Section. Additionally, all or
any portion of any item of Indebtedness may later be reclassified as having
been incurred pursuant to any category of permitted Indebtedness described in
clauses (b)(i) through (b)(xxi) above or pursuant to paragraph (a) of this
Section so long as such Indebtedness is permitted to be incurred pursuant to
such provision at the time of reclassifications, provided that all Indebtedness
outstanding on the Closing Date under this Agreement shall be deemed to have
been incurred on such date in reliance on the exception provided by Section 7.02(b)(i)
and may not later be reclassified. Accrual of interest, the accretion of
accreted value, the amortization of original issue discount and the payment of
interest in the form of additional Indebtedness, Disqualified Stock or
preferred stock will not be deemed to be an incurrence of Indebtedness,
Disqualified Stock or preferred stock for purposes of this Section.

 

(d)  For purposes of determining compliance with
any U.S. dollar-denominated restriction on the incurrence of Indebtedness, the
U.S. dollar-equivalent principal amount of Indebtedness denominated in a
foreign currency shall be calculated based on the relevant currency exchange
rate in effect on the date such Indebtedness was incurred, in the case of term
debt, or first committed, in the case of revolving credit debt; provided that
if such Indebtedness is incurred to refinance other Indebtedness denominated in
a foreign currency, and such refinancing would cause the applicable U.S.
dollar-denominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S.
dollar-denominated restriction shall be deemed not to have been exceeded so
long as the principal amount of such refinancing Indebtedness does not exceed
the principal amount of such Indebtedness being refinanced.

 

(e)  The principal amount of any Indebtedness
incurred to refinance other Indebtedness, if incurred in a different currency
from the Indebtedness being refinanced, shall be calculated based on the

 

90

 

to incur at least $1.00 of additional Indebtedness pursuant to the
Consolidated Leverage Ratio test set forth in Section 7.02(a);

 

(v)           each Guarantor, unless it is a Subsidiary Guarantor that
is the other party to the transactions described above, in which Section 7.04(a)(ii)
above shall apply, shall have by supplement to this Agreement confirmed that
its Guarantee shall apply to such Person’s obligations under this Agreement and
its obligations under the Collateral Documents shall continue to be in effect
and shall cause such amendments, supplements or other instruments to be
executed, filed and recorded in such jurisdictions as may be required by
applicable law to preserve and protect the Lien on the Collateral owned by such
Guarantor, together with such financing statements or comparable documents as
may be required to perfect any security interests in such Collateral which may
be perfected by the filing of a financing statement or a similar document under
the Uniform Commercial Code or other similar statute or regulation of the
relevant states or jurisdictions;

 

(vi)          the Borrower shall have delivered to the Administrative
Agent an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger or transfer and such supplements, if any, comply
with this Agreement and, if a supplement to this Agreement or any supplement to
any Collateral Document is required in connection with such transaction, such
supplement shall comply with the applicable provisions of this Agreement and
the Collateral Documents;

 

(vii)         to the extent any assets of the Person which is merged or
consolidated with or into the Successor Borrower are assets of the type which
would constitute Collateral under the Collateral Documents, the Successor
Borrower will take such other actions as may be reasonably necessary to cause
such property and assets to be made subject to the Lien of the Collateral
Documents in the manner and to the extent required in this Agreement or any of
the Collateral Documents and shall take all reasonably necessary action so that
such Lien is perfected to the extent required by the Collateral Documents; and

 

(viii)        the Collateral owned by or transferred
to the Successor Borrower shall:

 

(A)
continue to constitute Collateral under this Agreement and the Collateral
Documents,

 

(B)
be subject to the Lien in favor of the Collateral Agent for the benefit of the
Collateral Agent, the Administrative Agent and the other Secured Parties; and

 

(C)
not be subject to any Lien other than Permitted Liens.

 

(b) The Successor Borrower
will succeed to, and be substituted for such Borrower under this Agreement and
the Obligations and the Borrower (if not the Successor Borrower) will be fully
released from its obligations under this Agreement and the Collateral Documents
but, in the case of a lease of all or substantially all its assets, the
Borrower will not be released from the obligation to pay the principal of and
interest on the Obligations.

 

(c) In addition, the
Borrower will not, directly or indirectly, lease all or substantially all of
the properties and assets of it and its Restricted Subsidiaries taken as a
whole, in one or more related transactions, to any other Person.

 

(d) Notwithstanding the
foregoing clauses (a)(iii) and (a)(iv),

 

(i)            any Restricted Subsidiary that is not a Subsidiary
Guarantor may consolidate with, merge into or transfer all or part of its
properties and assets to the Borrower or any Restricted Subsidiary;

 

92

 

supplemental indenture or any supplement to any
Security Document is required in connection with such transaction, such
supplement shall comply with the applicable provisions of this Agreement;

 

(E)
to the extent any assets of the Person which is merged and consolidated with or
into the Successor Person are assets of the type which would constitute
Collateral under the applicable Collateral Documents, the Successor Person will
take such other actions as may be reasonably necessary to cause such property
and assets to be made subject to the Lien of the Collateral Documents in the
manner and to the extent required in this Agreement or any of the Collateral
Documents and shall take all reasonably necessary action so that such Lien is
perfected to the extent required by the Collateral Documents; and

 

(F)
the Collateral owned by or transferred to the Successor Person shall:

 

(1)
continue to constitute Collateral under this Agreement and the Collateral
Documents;

 

(2)
be subject to the Lien in favor of the Collateral Agent for the benefit of the
Collateral Agent, the Administrative Agent and the Secured Parties;

 

(3) not be subject to any Lien other than Permitted Liens; and

 

(ii)           the transaction is made in compliance with Section 7.08.

 

(b) Subject to certain limitations described in this
Agreement, the Successor Person will succeed to, and be substituted for, such
Guarantor under this Agreement and such Guarantor’s Guarantor Obligations but,
in the case of a lease of all or substantially all its assets, the Guarantor
will not be released from its obligations under its Guarantee. Notwithstanding
the foregoing any Subsidiary Guarantor may merge into or transfer all or part
of its properties and assets to another Subsidiary Guarantor or the Borrower.

 

Section 7.06           Transactions with Affiliates.
(a) The Borrower will not, and will not permit any Restricted Subsidiary to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of
its properties or assets to, or purchase any property or assets from, or enter
into or make or amend any transaction, contract, agreement, understanding,
loan, advance or guarantee with, or for the benefit of, any Affiliate of the
Borrower (each of the foregoing, an “Affiliate
Transaction”), unless:

 

(i)            such Affiliate Transaction is on terms that are not
materially less favorable to the Borrower or the relevant Restricted Subsidiary
than those that would have been obtained in a comparable transaction by the
Borrower or such Restricted Subsidiary with an unrelated Person on an arm’s-length
basis; and

 

(ii)           the Borrower delivers to the Administrative Agent (A) with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate payments or consideration in excess of $15.0
million, a resolution adopted by the majority of the Board of Directors of the
Borrower approving such Affiliate Transaction and set forth in an Officers’
Certificate that (x) such Affiliate Transaction has been approved by a majority
of the disinterested members of the Board of Directors, if any, and (y) that
such Affiliate Transaction complies with clause (a) above; and (B) with respect
to any Affiliate Transactions or series of related Affiliate Transactions
involving aggregate payments or consideration in excess of $25.0 million, a
letter from an Independent Financial Advisor stating that such transaction is
fair to the Borrower or such Restricted Subsidiary from a financial point of
view.

 

94

 

(xii)          any issuance of securities, or other payments, awards or
grants in cash, securities or otherwise pursuant to, or the funding of,
employment arrangements, stock options and stock ownership plans approved by
the Board of Directors of the Borrower in good faith;

 

(xiii)         sales of accounts receivable, or
participations therein, in connection with any Receivables Facility; and

 

(xiv)        transactions contemplated by the Reorganization Plan and the
related confirmation order.

 

Section 7.07        Dividend and Other Payment
Restrictions Affecting Restricted Subsidiaries.

 

(a) The Borrower will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any consensual encumbrance or consensual
restriction on the ability of any such Restricted Subsidiary to:

 

(i)            pay dividends or make any other distributions to the
Borrower or any Restricted Subsidiary on its Capital Stock or with respect to
any other interest or participation in, or measured by, its profits, or pay any
Indebtedness owed to the Borrower or any Restricted Subsidiary;

 

(ii)           make loans or advances to the Borrower or any Restricted
Subsidiary; or

 

(iii)          sell, lease or transfer any of its properties or assets to
the Borrower or any Restricted Subsidiary.

 

(b) The foregoing limitations in paragraph (a) will
not apply (in each case) to encumbrances or restrictions existing under or by
reason of:

 

(i)            contractual encumbrances or restrictions in effect on the
Closing Date, including pursuant to this Agreement and the related
documentation as in effect on the Closing Date and any amendments,
restatements, modifications, renewals, supplements, refundings, replacements or
refinancings of those agreements; provided that the amendments, restatements,
modifications, renewals, supplements, refundings, replacements or refinancings
are not materially more restrictive, taken as a whole, with respect to such
dividend and other payment restrictions than those contained in those
agreements on the Closing Date;

 

(ii)           the Senior Secured Notes Indenture;

 

(iii)          purchase money obligations for property acquired in the
ordinary course of business that impose restrictions of the nature discussed in
Section 7.07(a)(iii) on the property so acquired;

 

(iv)          applicable law or any applicable rule, regulation or order;

 

(v)           any agreement or other instrument of a Person acquired by
the Borrower or any Restricted Subsidiary in existence at the time of such
acquisition (but not created in contemplation thereof), which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any
Person, other than the Person, or the property or assets of the Person, so
acquired provided that, in the case of Indebtedness, such Indebtedness was
permitted by the terms of this Agreement to be incurred;

 

96

 

similar to those set forth in the Senior Secured Note Indenture with
respect to offers to purchase or redeem with the proceeds of sales of
Collateral to purchase the maximum principal amount of the Specified Notes and
such Pari Passu Payment Lien Obligations (on a pro rata basis) to which the
Collateral Disposition Offer applies that may be purchased out of the Excess
Collateral Proceeds, at an offer price in cash in an amount equal to 100% of
the principal amount of the Specified Notes, plus accrued and unpaid interest
to the date of purchase, in accordance with the procedures set forth in the
Senior Secured Note Indenture; provided,
that the Borrower may, prior to making a Collateral Disposition Offer, repay,
repurchase, redeem or acquire the maximum principal amount of Indebtedness that
is Priority Payment Lien Obligations (and to correspondingly reduce the
commitments with respect thereto) secured by such Collateral that may be
repaid, repurchased, redeemed or acquired out of such Net Proceeds, plus
accrued and unpaid interest, to the date of prepayment, with any Excess
Collateral Proceeds not used to repay, repurchase, redeem or acquire such
Indebtedness offered to holders of the Specified Notes in accordance with this
clause (after giving effect to the repayment, repurchase, redemption or
acquisition of Priority Payment Lien Obligations). To the extent that the
aggregate amount of Specified Notes and other Pari Passu Payment Lien
Obligations so validly tendered and not properly withdrawn pursuant to a
Collateral Disposition Offer is less than the Excess Collateral Proceeds, the
Borrower may use any remaining Excess Collateral Proceeds (“Unutilized Excess Collateral Proceeds”) in
any manner not prohibited by this Agreement. Upon completion of such Collateral
Disposition Offer, the amount of Excess Collateral Proceeds shall be reset at
zero.

 

(b)  (i)  The Borrower will not, and will not permit
any Restricted Subsidiary to, directly or indirectly consummate an Asset Sale
(other than Asset Sales of Collateral which shall be treated in the manner set
forth in paragraph (a) above), unless:

 

(A)
the Borrower or such Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the fair market
value (as determined in good faith by the Borrower on the date of contractually
agreeing to such Asset Sale) of the assets sold or otherwise disposed of;

 

(B)
at least 75% of the consideration therefor received by the Borrower or such
Restricted Subsidiary, as the case may be, is in the form of cash, Cash
Equivalents or Replacement Assets or a combination of the foregoing; and

 

(C)
to the extent that any consideration received by the Borrower or a Restricted
Subsidiary in such Asset Sale constitutes securities or other assets that are
of a type or class that constitutes Collateral, such securities or other
assets, including the assets of any Person that becomes a Subsidiary Guarantor
as a result of such transaction, are concurrently with their acquisition added
to the Collateral securing the Secured Obligations in the manner and to the
extent required in this Agreement or any of the Collateral Documents.

 

(ii)           Within 365 days after the Borrower’s or a Restricted
Subsidiary’s receipt of Net Proceeds from an Asset Sale subject to this paragraph
(b), the Borrower or such Restricted Subsidiary, at its option, may apply such
Net Proceeds from such Asset Sale:

 

(A)
to repay Priority Payment Lien Obligations (and to correspondingly reduce
commitments with respect thereto) and Indebtedness of the applicable Restricted
Subsidiary (if such Restricted Subsidiary is not a Guarantor);

 

(B)
to make an investment in (1) any one or more businesses; provided that such
investment in any business is in the form of the acquisition of Capital Stock
of such business such that it constitutes a Restricted Subsidiary, (2) capital
expenditures or (3) acquisitions of other assets

 

99

 

(other than current assets), in each of (1), (2) and
(3), used or useful in a Similar Business; provided, further, that, to the
extent such investment is of the type which would constitute Collateral under
the applicable Collateral Documents, such investment is concurrently added to
the Collateral securing the Revolving Credit Loans in the manner and to the
extent required in this Agreement or any of the Collateral Documents; and/or

 

(C) to make an investment in
(a) any one or more businesses; provided that such investment in any business
is in the form of the acquisition of Capital Stock of such business such that
it constitutes a Restricted Subsidiary, (b) properties or (c) other assets
that, in each of (a), (b) and (c), replace the businesses, properties and
assets that are the subject of such Asset Sale; provided, further, that, to the
extent such investment is of the type which would constitute Collateral under
the applicable Collateral Documents, such investment is concurrently added to
the Collateral securing the Secured Obligations in the manner and to the extent
required in this Agreement or any of the Collateral Documents.

 

(iii)          Pending the final application of any Net Proceeds from
Asset Sales in accordance with clauses (ii)(A) through (ii)(C) above, the
Borrower and the Restricted Subsidiaries may temporarily reduce Indebtedness or
otherwise apply such Net Proceeds in any manner not prohibited by this
Agreement. Any binding commitment to apply Net Proceeds to invest in accordance
with clauses (ii)(B) or (ii)(C) above shall be treated as a permitted final
application of Net Proceeds from the date of such commitment so long as the
Borrower or such Restricted Subsidiary enters into such commitment with the
good faith expectation that such Net Proceeds will be applied to satisfy such
commitment within 180 days of such commitment; provided that if such commitment
is later canceled, terminated or otherwise not consummated during such period
for any reason, then such Net Proceeds shall constitute “Excess Proceeds” (as
defined in clause (iv) below).

 

(iv)          Any Net Proceeds from Asset Sales covered by this paragraph
(b) that are not invested or applied as provided and within the time period set
forth above will be deemed to constitute “Excess
Proceeds.” When the aggregate amount of Excess Proceeds exceeds
$20.0 million, the Borrower may make an offer to all holders of the Specified
Notes, and, at the Borrower’s option, to the holders of any Pari Passu Payment
Lien Obligations (an “Asset Sale Offer”)
containing provisions similar to those set forth in the Senior Secured Note
Indenture with respect to offers to purchase or redeem with the proceeds of
sales of assets, to purchase the maximum principal amount of Specified Notes
and Pari Passu Payment Lien Obligations that may be purchased out of the Excess
Proceeds at an offer price in cash in an amount equal to 100% of the principal
amount thereof, plus accrued and unpaid interest, if any, to the date fixed for
the closing of such offer, in accordance with the procedures set forth in the
Senior Secured Note Indenture. To the extent that the aggregate amount of
Specified Notes and such Pari Passu Payment Lien Obligations tendered pursuant
to an Asset Sale Offer is less than the Excess Proceeds, the Borrower may use
any remaining Excess Proceeds (which shall also constitute “Unutilized Excess Proceeds”) for any
purpose not prohibited by the terms of this Agreement. Upon completion of any
such Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.
After the Borrower or any Restricted Subsidiary has applied the Net Proceeds
from any Asset Sale as provided in, and within the time periods required by,
this paragraph (b), any Unutilized Excess Proceeds may be released by the Collateral
Agent to the Borrower or such Restricted Subsidiary for use by the Borrower or
such Restricted Subsidiary for any purpose not prohibited by this Agreement.

 

(c) For purposes of paragraphs (a) and (b) of this
Section, (i) any liabilities (other than Pari Passu Payment Lien Obligations,
Disqualified Stock and Indebtedness the repayment of which would constitute a
Restricted Payment) (as shown on the Borrower’s, or such Restricted Subsidiary’s,
most recent balance sheet or in the notes thereto) of the Borrower or any
Restricted Subsidiary that are assumed by the transferee of any such assets and
for which the Borrower and all Restricted Subsidiaries have been

 

100

 

validly released by all creditors in writing; and (ii) any securities
or other obligations received by the Borrower or such Restricted Subsidiary
from such transferee that are converted by the Borrower or such Restricted
Subsidiary into cash or Cash Equivalents (to the extent of the cash or Cash Equivalents
received) within 180 days following the closing of such Asset Sale shall be
deemed to be cash or Cash Equivalents.

 

In addition for purposes of paragraph (b) of this
Section only, any Designated Noncash Consideration received by the Borrower or
any Restricted Subsidiary in such Asset Sale having an aggregate fair market
value, taken together with all other Designated Noncash Consideration received
pursuant to this paragraph (c) that is at that time outstanding, not to exceed
1.0% of Total Assets with the fair market value of each item of Designated
Noncash Consideration being measured at the time received and without giving
effect to subsequent changes in value, shall be deemed to be cash or Cash
Equivalents.

 

Section 7.09     Prepayments, Etc. of Indebtedness.
The Borrower will not, and will not permit any Restricted Subsidiary to,
directly or indirectly:

 

(a) prepay, redeem,
purchase, defease or otherwise satisfy prior to the scheduled maturity thereof
in any manner (it being understood that payments of regularly scheduled
interest shall be permitted) any unsecured Indebtedness, any Junior Lien
Indebtedness or any Indebtedness that is required to be subordinated to the
Obligations pursuant to the terms of the Loan Documents (collectively, “Junior Financing”) or make any payment in
violation of any subordination terms of any Junior Financing Documentation,
except the refinancing thereof with Refinancing Indebtedness otherwise
permitted under Section 7.02 (b)(xv);

 

(b) amend, modify or change
in any manner materially adverse to the interests of the Lenders (i) any term
or condition of the Senior Secured Notes, the Senior Secured Note Indenture,
documentation governing Pari Passu Payment Lien Obligations or any Junior
Financing Documentation or (ii) any Organization Document of any Group Member,
in any case without the consent of the Administrative Agent; or

 

(c) amend, modify or
otherwise change Section 3.2(b)(1) of the Senior Secured Note Indenture or
clause (26) of the definition of “Permitted Liens” in the Senior Secured Note
Indenture.

 

Section 7.10     Holding Company. Holdings shall not
conduct, transact or otherwise engage in any business or operations other than
(i) its ownership of all of the Equity Interests in, and its management of, the
Borrower, (ii) action required by law to maintain its existence, (ii) performance
of its obligations under this Agreement, the Senior Secured Note Indenture, the
Collateral Documents and the other agreements contemplated thereby, (v) any
public offering of its common stock, (vi) activities incidental to its
maintenance and continuance and to any of the foregoing activities and (vii) other
activities to the extent permitted by, and in compliance with, this Agreement.

 

Section 7.11     Payments for Consent. The Borrower
will not, and will not permit any of its Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of
any Lender for or as an inducement to any consent, waiver or amendment of any
of the terms or provisions of this Agreement unless such consideration is
offered to be paid and is paid to all Lenders that consent, waive or agree to
amend in the time frame set forth in the solicitation documents relating to
such consent, waiver or amendment.

 

Section 7.12     Limitation on Lines of Business. The
Borrower will not, and will not permit any Restricted Subsidiary to, engage in
any business other than a Similar Business.

 

101

 

Annex B

 

	
  Applicant/Obligor

  	
   

  	
  L/C Number

  	
   

  	
  Amount (USD)

  	
   

  	
  Account party

  	
   

  	
  Beneficiary
  Name

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Reader’s Digest Association Inc

  	
   

  	
  CFCS-808046

  	
   

  	
  $

  	
  1,650,000.00

  	
   

  	
  The Reader’s Digest Association Inc

  	
   

  	
  North American Specialty Insurance

  
	
  The Reader’s Digest Association Inc

  	
   

  	
  CPCS-761228

  	
   

  	
  $

  	
  421,977.20

  	
   

  	
  Direct Holdings Americas, Inc.

  	
   

  	
  KBSII Willow Oaks, LLC

  
	
  The Reader’s Digest Association Inc

  	
   

  	
  TPTS-750710

  	
   

  	
  $

  	
  2,774,904.00

  	
   

  	
  The Reader’s Digest Association,

  	
   

  	
  Advance Magazine Publishers Inc.

  
	
  The Reader’s Digest Association Inc

  	
   

  	
  TPTS-777217

  	
   

  	
  $

  	
  300,000.00

  	
   

  	
  Direct Entertainment Media Group Inc.

  	
   

  	
  Massachusetts Bay Insurance Company

  
	
  The Reader’s Digest Association Inc

  	
   

  	
  TPTS-792495

  	
   

  	
  $

  	
  2,405,412.00

  	
   

  	
  The Reader’s Digest Association

  	
   

  	
  44 South Broadway Property LLCExhibit
10.10

 

EXECUTION VERSION

 

 

STOCKHOLDERS AGREEMENT

 

 

dated as of February 19, 2010

 

 

among

 

 

RDA HOLDING CO.

 

 

and

 

 

THE HOLDERS NAMED HEREIN OR BOUND HEREBY

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 1. DEFINITIONS

  	
  1

  
	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
  1

  
	
  1.2

  	
  Other Definitional Provisions; Interpretation

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 2. CORPORATE GOVERNANCE

  	
  6

  
	
   

  	
   

  
	
  2.1

  	
  Board of Directors

  	
  6

  
	
  2.2

  	
  Certificate of Incorporation and By-Laws

  	
  7

  
	
  2.3

  	
  Election of Common Stock

  	
  7

  
	
  2.4

  	
  Conversion of Common Stock

  	
  8

  
	
  2.5

  	
  Limited Voting Common Stock

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 3. INFORMATION
  REQUIREMENTS

  	
  9

  
	
   

  	
   

  
	
  3.1

  	
  Financial Reports

  	
  9

  
	
  3.2

  	
  Annual Budgets

  	
  10

  
	
  3.3

  	
  Access; Updated Calls; Annual Meeting

  	
  10

  
	
  3.4

  	
  Confidentiality

  	
  11

  
	
  3.5

  	
  Environmental Reports

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 4. TRANSFERS AND
  ISSUANCES

  	
  12

  
	
   

  	
   

  
	
  4.1

  	
  Limitations on Transfer

  	
  12

  
	
  4.2

  	
  Transfers to Affiliates

  	
  13

  
	
  4.3

  	
  Effect of Void Transfers

  	
  13

  
	
  4.4

  	
  Legend on Securities

  	
  13

  
	
  4.5

  	
  Tag-Along Rights

  	
  15

  
	
  4.6

  	
  Drag-Along Rights

  	
  17

  
	
  4.7

  	
  Participation Rights

  	
  19

  
	
   

  	
   

  	
   

  
	
  SECTION 5. MISCELLANEOUS

  	
  21

  
	
   

  	
   

  
	
  5.1

  	
  Additional Securities Subject to Agreement

  	
  21

  
	
  5.2

  	
  Termination

  	
  21

  
	
  5.3

  	
  Injunctive Relief

  	
  21

  
	
  5.4

  	
  Other Stockholders Agreements

  	
  21

  

 

i

 

	
  5.5

  	
  Amendments

  	
  21

  
	
  5.6

  	
  Successors, Assigns and Transferees

  	
  22

  
	
  5.7

  	
  Notices

  	
  22

  
	
  5.8

  	
  Integration

  	
  22

  
	
  5.9

  	
  Severability

  	
  23

  
	
  5.10

  	
  Counterparts

  	
  23

  
	
  5.11

  	
  Governing Law, Etc.

  	
  23

  
	
  5.12

  	
  Management Stockholders

  	
  23

  
	
  5.13

  	
  Director Stockholders

  	
  23

  
	
  5.14

  	
  Lender Relationship

  	
  24

  

 

ii

 

This STOCKHOLDERS AGREEMENT,
dated as of February 19, 2010, is entered into by and among RDA Holding Co.
(the “Company”), the creditors of the Company identified on Schedule A
hereto (the “Creditor Stockholders”), the Management Stockholders (as
defined below), the Director Stockholders (as defined below), any other
stockholder that may become a party to this Agreement after the date hereof and
pursuant to the terms hereof (collectively with the Creditor Stockholders, the
Management Stockholders and the Director Stockholders, the “Stockholders”)
and the Warrantholders (as defined below).

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS,
the Company, the Stockholders and the Warrantholders are entering into this
Agreement pursuant to the terms of the Plan (as defined below) to set forth
certain agreements with respect to the Company and its Subsidiaries and their
respective ownership of Common Stock (as defined below) issued pursuant to the
Plan.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the parties hereto agree as follows:

 

SECTION
1.   DEFINITIONS

 

1.1  Defined Terms.

 

As
used in this Agreement, terms defined in the preamble shall have their
respective assigned meanings, and the following capitalized terms shall have
the meanings ascribed to them below:

 

“Accredited Investor” shall mean an “Accredited Investor,” as
such term is defined in Regulation D promulgated under the Securities Act, or
any successor rule then in effect.

 

“Affiliate” (a) shall mean, with respect to any Person, any
Person that directly or indirectly controls, is controlled by or is under
common control with, such Person or any Immediate Family Member of such Person;
and (b) shall also include, with respect to any Person who is an individual, a
trust, the beneficiaries of which, or a corporation or partnership, the
stockholders or partners of which, include only such individual and/or such
individual’s Immediate Family Members. 
For purposes of this definition, the term “control” (including the
correlative terms “controlling”, “controlled by” and “under common control with”)
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

 

“Agreement” shall mean this Stockholders
Agreement, as the same may be amended, supplemented or otherwise modified from
time to time.

 

“beneficially own” shall have the meaning set forth in Rule 13d-3
under the Exchange Act.

 

“Board” shall have the meaning set forth in Section 2.1(a).

 

 

“Business Day” shall mean a day other than a Saturday, Sunday,
federal or New York State holiday or other day on which commercial banks in New
York City are authorized or required by law to close.

 

“Change of Control” shall mean the occurrence of (a) any
consolidation or merger of the Company with or into any other entity, or any
other corporate reorganization or transaction (including the acquisition of
capital stock of the Company), whether or not the Company is a party thereto, in
which the stockholders of the Company immediately prior to such consolidation,
merger, reorganization or other transaction, own capital stock either (i) representing
directly, or indirectly through one or more entities, less than 50% of the
economic interests in or voting power of the Company or other surviving entity
immediately after such consolidation, merger, reorganization or other
transaction or (ii) does not directly, or indirectly through one or more
entities, have the power to elect a majority of the entire board of the
directors of the Company or other surviving entity immediately after such
consolidation, merger, reorganization or other transaction, or (b) any
transaction or series of related transactions, whether or not the Company is a
party thereto, after giving effect to which in excess of 50% of the Company’s
voting power is owned by any Person or “group” (as such term is used in Rule 13d-5
under the Exchange Act) (excluding the group created by this Agreement); provided
that any consolidation or merger effected exclusively to change the domicile of
the Company or to form a holding company in which the stockholders of the
Company immediately prior to such consolidation or merger own capital stock
representing economic interests and voting power with respect to such
redomiciled entity or holding company in substantially the same proportions as
their ownership of capital stock of the Company shall be excluded from clauses (a)
and (b) above.

 

“Common Stock” shall mean the collective reference to Voting
Common Stock and Limited Voting Common Stock.

 

“Common Stock Equivalents” shall mean any warrants, rights,
options or other securities exchangeable or exercisable for, or convertible
into, Common Stock, including the Warrants.

 

“Company” shall have the meaning set forth in the preamble
hereto.

 

“Company Competitor” shall mean any Person that is engaged
directly or indirectly in the publishing or the direct marketing industry or
any other business that competes with a material line of the business of the
Company or its Subsidiaries.  Whether a
Person is a Company Competitor shall be determined by the Board, acting in good
faith.

 

“Conversion Request” shall have the meaning set forth in Section
2.4(a).

 

“Creditor Stockholders” shall have the meaning set forth in the
preamble.

 

“DGCL” shall have the meaning set forth in Section 5.11.

 

“Director” and “Directors” shall have the meanings set
forth in Section 2.1(a).

 

2

 

“Director Stockholder” shall mean Directors who hold Equity
Interests and are not employees of the Company or its Subsidiaries.

 

“Drag-Along Notice” shall have the meaning set forth in Section 4.6(a).

 

“Drag-Along Transaction” shall have the meaning set forth in Section
4.6(a).

 

“Effective Date” shall mean the effective date of the Plan
pursuant to the terms thereof.

 

“EHS” shall have the meaning set forth in Section 3.5(a).

 

“Eligible Stockholder” shall mean each Stockholder (other than
Management Stockholders and Director Stockholders); provided that such
Stockholder and its Affiliates beneficially own an aggregate number of shares
of Common Stock representing at least one percent (1%) of the then outstanding
shares of Common Stock.

 

“Equity Interests” shall mean Common Stock, Common Stock Equivalents
or any other equity securities of the Company, or securities exchangeable or
exercisable for, or convertible into, such other equity securities of the
Company.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations promulgated thereunder, as the same
may be amended from time to time.

 

“Governmental Authority” shall mean any government, any state or
other political subdivision thereof, and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

 

“Immediate Family Member” shall mean, with respect to any
Person, a spouse, parent, child, grandchild or sibling of such Person.

 

“Independent Directors” shall have the meaning set forth in Section
2.1(b)(ii).

 

“Issuance” shall have the meaning set forth in Section 4.7(a).

 

“Limited Voting Common Stock” shall mean the class B common
stock, par value $0.001 per share, of the Company.

 

“Limited Voting Stockholder” shall
mean any holder of shares of Limited Voting Common Stock; provided, however,
that any reference to a Limited Voting Stockholder shall be made exclusively
with respect to the shares of Limited Voting Common Stock held by such Person.

 

“Majority Stockholders” shall have the meaning set forth in Section
2.1(d).

 

“Management Director” shall have the meaning set forth in Section
2.1(b)(i).

 

3

 

“Management Stockholders” shall mean
employees (and their Affiliates) or former employees (and their Affiliates) of
the Company or its Subsidiaries who hold Equity Interests.

 

“Other Agreements” shall have the meaning set forth in Section 5.8.

 

“Other Capital Stock” shall have the meaning set forth in Section
4.7(a)(ii).

 

“Other Capital Stock Equivalents” shall have the meaning set
forth in Section 4.7(a)(ii).

 

“Permitted Transferee” shall mean any Person to whom a
Stockholder (including any Person who becomes a “Stockholder” in accordance
with Section 5.6 and the other terms of this Agreement) Transfers Equity
Interests in accordance with the terms of this Agreement.

 

“Person” shall mean any individual, corporation, partnership,
limited liability company, trust, joint stock company, business trust,
unincorporated association, joint venture, Governmental Authority or other
entity of any nature whatsoever.

 

“Plan” shall mean the Plan of Reorganization confirmed by order
dated January 19, 2010 of the United States Bankruptcy Court for the Southern
District of New York in the chapter 11 case commenced by the Company and
certain of its Subsidiaries.

 

“Prepetition Credit Agreement” shall mean that certain Credit
Agreement dated as of March 2, 2007 among The Reader’s Digest Association, Inc.,
certain of its Subsidiaries, JPMorgan Chase Bank, N.A., in its capacity as
administrative agent and collateral agent and the Prepetition Lenders party
thereto, as amended, supplemented or otherwise modified.

 

“Prepetition Lenders” shall mean those
lenders party to the Prepetition Credit Agreement from time to time and their
Affiliates holding Swap Claims.

 

“Pro Rata Share” shall have the meaning set
forth in Section 4.5(a).

 

“Public Offering” shall mean a public offering and sale of
Voting Common Stock pursuant to an effective registration statement under the
Securities Act.

 

“Purchasing Holder” shall have the meaning set forth in Section 4.7(d).

 

“Registration Rights Agreement” shall mean that certain
Registration Rights Agreement dated as of the date hereof among the Company and
the holders named therein.

 

“Right” shall have the meaning set forth in Section 4.7(a).

 

“SEC” shall mean the U.S. Securities and Exchange Commission.

 

4

 

“Securities Act” shall mean the Securities Act of 1933, as
amended, and the rules and regulations promulgated thereunder, as the same may
be amended from time to time.

 

“Selling Stockholder(s)” shall have the meaning set forth in Section
4.6(a).

 

“Sharing Percentage” means, with respect to each holder of
Common Stock (or group of holders of Common Stock), the fraction (expressed as
a percentage), the numerator of which is the number of shares of Common Stock
owned by such holder and the denominator of which is the sum of the total
number of shares of Common Stock owned by all holders (or the relevant holders
if the calculation is made with respect to a specified group of holders).

 

“Stockholders” shall have the meaning set forth in the preamble
hereto.

 

“Subsidiary” shall mean, with respect to any Person, any
corporation, limited liability company, partnership, association or other
business entity of which fifty percent (50%) or more of the total voting power
of shares of capital stock entitled (without regard to the occurrence of any
contingency) to vote generally in the election of directors, managers or
trustees thereof, or fifty percent (50%) or more of the equity interest
therein, is at the time owned or controlled, directly or indirectly, by any
Person or one or more of the other Subsidiaries of such Person or a combination
thereof.

 

“Swap Claims” shall mean those secured Claims (as defined in the
Plan) arising from hedging arrangements under, or in connection with, the
Prepetition Credit Agreement with certain of the Prepetition Lenders or their
Affiliates.

 

“Tagging Stockholder” shall have the meaning set forth in Section
4.5(a).

 

“Third Party” shall have the meaning set forth in Section 4.6(a).

 

“Transfer” shall mean any direct or indirect transfer, sale,
offer, assignment, exchange, distribution, mortgage, pledge, hypothecation or
other disposition. “Transferor” and “Transferee” have correlative
meanings.

 

“Transferring Stockholder” shall have the meaning set forth in Section
4.5(a).

 

“Voting Common Stock” shall mean the class A common stock, par
value $0.001 per share, of the Company.

 

“Warrant Agreement” means the Warrant Agreement, dated as of the
date hereof, between the Company and American Stock Transfer & Trust
Company, LLC, as warrant agent.

 

“Warrantholders” shall mean the holders of the Warrants.

 

“Warrants” means warrants, issued pursuant to the Plan and
governed by the Warrant Agreement, that are exercisable for Voting Common
Stock.

 

5

 

1.2  Other Definitional Provisions;
Interpretation.

 

(a)           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, Subsection and Schedule references are to this
Agreement unless otherwise specified.

 

(b)           The headings in this
Agreement are included for convenience of reference only and shall not limit or
otherwise affect the meaning or interpretation of this Agreement.

 

(c)           The meanings given
to terms defined herein shall be equally applicable to both the singular and
plural forms of such terms.

 

(d)           The words “including”
and “include” and other words of similar import shall be deemed to be followed
by the phrase “without limitation”.

 

(e)           References to
agreements and other documents shall be deemed to include all subsequent
amendments and other modifications thereto.

 

(f)            References to
statutes shall include all regulations promulgated thereunder and references to
statutes or regulations shall be construed as including all statutory and
regulatory provisions consolidating, amending or replacing the statute or
regulation.

 

(g)           Except as otherwise
set forth herein, schedules to this Agreement are a material part hereof and
shall be treated as if fully incorporated into the body of the Agreement and
shall be included in the definition of “Agreement”.

 

(h)           Whenever this
Agreement refers to a number of days, such number shall refer to calendar days
unless Business Days are specified and shall be counted from the day
immediately following the date from which such number of days are to be
counted.

 

SECTION
2.   CORPORATE GOVERNANCE

 

2.1  Board of Directors.

 

(a)           The parties agree to
cause the Board of Directors of the Company (the “Board”) initially to
consist of eight (8) directors (individually, a “Director” and, collectively,
the “Directors”), subject to future increase or decrease in accordance
with this Agreement and the Company’s by-laws, and it is hereby agreed that the
initial Directors are Mary G. Berner, James B. Hawkes, Norman S. Matthews,
Karen R. Osar, Frederic G. Reynolds, Donald Steiner, Peter Stern and Carl
Wilson.

 

(b)           Each Stockholder
agrees that such Stockholder will vote all of the Voting Common Stock
beneficially owned or held of record by such Stockholder so as to elect and,
subject to Section 2.1(d) below, to continue in office:

 

(i)            the Chief Executive Officer of the
Company (the “Management Director”); and

 

6

 

(ii)           seven (7) Directors who will be
subject to the reasonable approval of the steering committee of the Prepetition
Lenders and identified in a notice filed with the bankruptcy court by the
Company pursuant to Section 1129(a)(5) of the Bankruptcy Code prior to the
confirmation hearing on the Plan (the “Independent Directors”).  The Independent Directors (A) shall not (x) be
employees or consultants of the Company or any Subsidiary of the Company or
have been employees or consultants of the Company or any Subsidiary of the
Company during the three (3) year period preceding their becoming members of
the Board or (y) employees of any Prepetition Lender or any Permitted
Transferee thereof and (B) shall have the qualifications necessary, with
respect to experience and educational background, to serve as Directors of the
Company.

 

(c)           The Company agrees
to include the Management Director and the Independent Directors as the slate
of nominees recommended by the Board to the stockholders of the Company and to
use its best efforts to cause the election of each such nominee to the Board.

 

(d)           If any of the Independent
Directors ceases to serve as a member of the Board (whether by reason of death,
resignation, removal or otherwise), the holders of a majority of the
outstanding shares of Voting Common Stock (the “Majority Stockholders”)
shall be entitled to designate a successor Director to fill the vacancy created
thereby, provided that such successor Director shall meet the requirements set
forth in clauses (A) and (B) of Section 2.1(b)(ii).  In addition, the size of the Board shall not
be increased unless such increase is approved by the Majority Stockholders and
no person shall fill any newly created directorship resulting from any such
increase unless such person shall have been approved by the Majority
Stockholders and such person shall meet the requirements set forth in clauses (A)
and (B) of Section 2.1(b)(ii).  Each
Stockholder agrees that such Stockholder will vote all of the Voting Common
Stock beneficially owned or held of record by such Stockholder so as to elect
any such successor Director.

 

(e)           The parties agree
that any Independent Director may be removed, with or without cause, by the
Majority Stockholders.

 

(f)            The initial
Chairman of the Board shall be selected among the Independent Directors by the
steering committee of the Prepetition Lenders and identified in a notice filed
with the bankruptcy court by the Company pursuant to Section 1129(a)(5) of the
Bankruptcy Code prior to the confirmation hearing on the Plan.  Thereafter, the Chairman of the Board shall
be selected by a majority of the Independent Directors.

 

2.2  Certificate of Incorporation and By-Laws.  The Company and the Stockholders shall take
or cause to be taken all lawful action necessary to ensure at all times that
the certificates of incorporation and by-laws (or equivalent governing
documents) of the Company and its Subsidiaries, as the same may be amended from
time to time in accordance with the terms hereof and thereof, are not, at any
time, inconsistent with the provisions of this Agreement.

 

2.3  Election of Common Stock.  Upon the written request of any intended
recipient of Common Stock prior to the Effective Date, on the Effective Date,
the Company shall 

 

7

 

issue a number of shares of
Limited Voting Common Stock to such recipient equal to, and in lieu of, the
number of shares of Voting Common Stock that would have been issued to such
recipient on the Effective Date.  Limited
Voting Common Stock shall have the same economic rights as Voting Common
Stock.  After the Effective Date, Limited
Voting Common Stock shall be convertible into Voting Common Stock (and vice
versa) at the request of the holder thereof in accordance with Section 2.4,
which request shall be made at the sole and absolute discretion of such holder
and shall not be subject to any rights of consent or approval of any other
Person, including the Company.  For the
avoidance of doubt, Limited Voting Common Stock and Voting Common Stock shall
receive identical consideration in a Change of Control transaction.

 

2.4  Conversion of Common Stock.

 

(a)           At any time and from
time to time, any Stockholder may convert all or any of its shares of Limited
Voting Common Stock into an identical number of shares of Voting Common Stock
(and vice versa) by delivering to the Company (a) written notice of its desire
for such conversion and (b) if certificated, the certificate or certificates
representing the Limited Voting Common Stock (or Voting Common Stock, as the
case may be) to be converted (a “Conversion Request”).  Except as otherwise provided herein, each
conversion shall be deemed to have been effected as of the close of business on
the date the Company receives a Conversion Request.  If a conversion of Common Stock is to be made
in connection with a Public Offering, a Change of Control (including a
Drag-Along Transaction) or any other transaction affecting the Company, the
conversion may, at the election of the Stockholder, be conditioned upon the
consummation of such transaction, in which case such conversion shall not be
deemed to be effective until such transaction has been consummated.

 

(b)           As soon as possible
after a conversion has been effected (but in any event within five (5) Business
Days after the Company receives a Conversion Request), and only if Common Stock
is certificated, the Company shall deliver to the converting Stockholder, at
such Stockholder’s request:

 

(i)            a certificate representing the
number of shares of Voting Common Stock or Limited Voting Common Stock, as the
case may be, issuable by reason of such conversion; and

 

(ii)           a certificate representing the
remaining number of shares of Voting Common Stock or Limited Voting Common
Stock, as the case may be, if the converting Stockholder elected to convert
less than all of such Stockholder’s Voting Common Stock or Limited Voting
Common Stock, as the case may be.

 

(c)           In connection with
the issuance of any shares of Voting Common Stock upon conversion of Limited
Voting Common Stock (or Limited Voting Common Stock upon conversion of Voting
Common Stock), the Company shall take all such actions as are necessary in
order to ensure that the Common Stock issuable upon such conversion shall be
duly and validly issued, fully paid and nonassessable, free and clear of all
taxes, liens, charges and encumbrances with respect to the issuance thereof
other than restrictions of applicable securities laws or contained in this
Agreement or the Registration Rights Agreement.

 

8

 

 

(d)           For the purpose of
enabling the Company to satisfy any obligation to issue Voting Common Stock
upon the conversion of Limited Voting Common Stock, the Company agrees to
reserve and keep available at all times out of its aggregate authorized but
unissued or treasury shares of Voting Common Stock the number of shares of
Voting Common Stock issuable upon the conversion of all outstanding shares of
Limited Voting Common Stock.

 

2.5  Limited Voting Common Stock.  Unless otherwise expressly set forth herein,
no Limited Voting Stockholder shall be entitled to vote any shares of Limited
Voting Common Stock with respect to any matters submitted to a vote of the
Stockholders.  Notwithstanding the
foregoing, if and only if any of the following actions are submitted to a vote
of the Stockholders, each share of Limited Voting Common Stock shall be
entitled to vote with the Voting Common Stock, with each share of Common Stock
having one vote and voting together as a single class:

 

(a)           the retention or
dismissal of outside auditors of the Company or any of its Subsidiaries;

 

(b)           any distributions to
Stockholders in respect of their Common Stock or Common Stock Equivalents, or
other distributions made in accordance with the terms of this Agreement;

 

(c)           any recapitalization,
merger, business combination, consolidation, disposal of assets, exchange or
other similar reorganization involving the Company or any of its Subsidiaries;

 

(d)           any amendment to the
certificate of incorporation or by-laws of the Company;

 

(e)           other than in
connection with the (x) issuance of shares of Common Stock upon the exercise of
the Warrants or of options granted under a management equity plan or similar
plan or (y) grant of options pursuant to and in accordance with such plans, any
authorization or issuance of Equity Interests in the Company or any of its
Subsidiaries;

 

(f)            any redemption,
purchase or other acquisition by the Company of any of its capital stock
(except for purchases from employees upon termination of employment); and

 

(g)           the commencement of
any dissolution, liquidation or winding-up of the affairs of the Company or any
of its Subsidiaries.

 

SECTION
3.   INFORMATION REQUIREMENTS

 

3.1  Financial Reports.  Until the Company becomes subject to the
reporting requirements of the Exchange Act, the Company shall provide each of
the Stockholders, other than any Management Stockholder or Director
Stockholder, and Warrantholders with (1) if the Company is required to provide
to its (or its Subsidiaries’) senior lenders or holders of debt securities
annual, quarterly and monthly financial reports, then such reports (at the same
time as provided to such senior lenders or holders of debt securities, as
applicable); provided that the Company shall not be required to provide monthly
financial reports to the Warrantholders and the Company shall provide financial
reports to the Stockholders with the information referenced 

 

9

 

in the last sentence of this
Section 3.1, whether or not required to be provided to such senior lenders or
holders of debt securities or (2) if not so required, then:

 

(a)           as soon as available
and in any event within ninety (90) days after the end of each fiscal year of
the Company (or one hundred twenty (120) days after the end of the first fiscal
year ending after the date of this Agreement), a consolidated balance sheet of
the Company and its Subsidiaries as of the end of such year, and consolidated
statements of income and cash flows of the Company and its Subsidiaries for the
year then ended prepared in conformity with generally accepted accounting
principles in the United States applied on a consistent basis, except as
otherwise noted therein, and setting forth in each case in comparative form the
figures for the previous fiscal year, together with an auditor’s report thereon
of a firm of established national reputation and including a management
discussion and analysis of financial condition and results of operations that
would be required to be contained in a filing with the SEC on Form 10-K, or any
successor or comparable form; and

 

(b)           as soon as available
and in any event within forty-five (45) days after the end of each of the first
three quarters of each fiscal year of the Company, consolidated balance sheets
of the Company and its Subsidiaries as of the end of such period, and
consolidated statements of income and cash flows of the Company and its
Subsidiaries for the period then ended prepared in conformity with generally
accepted accounting principles in the United States applied on a consistent
basis, except as otherwise noted therein, and subject to the absence of
footnotes and to year-end adjustments, and setting forth in each case in
comparative form the figures for the corresponding period of the previous
fiscal year, and including, for each such quarter, a management discussion and
analysis of financial condition and results of operations that would be
required to be contained in a filing with the SEC on Form 10-Q, or any
successor or comparable form.

 

The
annual and quarterly financial reports provided to the Stockholders under this Section
3.1 shall include (x) with the consolidated balance sheets and consolidated
statements of income and cash flows for each period presented, a comparison of
actual results to the Company’s budgeted results for such period and (y) in the
management discussion and analysis of financial condition and results of
operations for each period presented, discussion comparing actual results for
such period to the Company’s budgeted results for such period.

 

3.2  Annual Budgets.  Upon and to the extent of a prior written
request therefor, the Company shall provide each of the Eligible Stockholders
with annual budgets (in the form prepared by the Company for the Company’s or
its Subsidiaries’ senior lenders or holders of debt securities, if applicable,
and, if not, then in such form as the Company has prepared for the Board); provided
that such Eligible Stockholder is not a Company Competitor or an Affiliate of a
Company Competitor.

 

3.3  Access; Updated Calls; Annual Meeting.

 

(a)           The Company shall,
and shall cause its Subsidiaries and the officers, directors, employees,
auditors and agents of the Company and its Subsidiaries to, (i) afford each of
the Eligible Stockholders reasonable access at all reasonable times after
reasonable notice to the properties, offices and other facilities, and books
and records of the Company and its 

 

10

 

Subsidiaries
and (ii) afford each of the Eligible Stockholders the opportunity to discuss
the affairs, finances and accounts of the Company and its Subsidiaries with the
Chief Executive Officer and Chief Financial Officer of the Company from time to
time as each such Eligible Stockholder may reasonably request, and such
discussion will include such other senior executives of the Company or its
Subsidiaries that the Chief Executive Officer determines is reasonably
necessary to adequately respond to reasonable inquiries of such Eligible
Stockholder; provided that such Eligible Stockholder is not a Company
Competitor or an Affiliate of a Company Competitor.

 

(b)           At least once per
fiscal quarter, promptly following the Company’s provision of financial reports
required by Section 3.1, the Company shall host a conference call (with a
question and answer period) with the Chief Financial Officer of the Company and
such other members of senior management of the Company as the Company deems
appropriate and the Stockholders to discuss the performance of the business,
strategic alternatives and other issues as the Eligible Stockholders may
reasonably request.  No Stockholder who
is a Company Competitor or an Affiliate of a Company Competitor shall be
permitted to participate in the calls or receive the information contemplated
by the last sentence of Section 3.1.

 

(c)           The Company shall
hold an annual meeting of stockholders in accordance with the procedures set
forth in the Company’s by-laws.

 

3.4  Confidentiality.  Each Stockholder and Warrantholder agrees to
maintain as confidential all Information (as defined below) provided to such
Stockholder and Warrantholder by the Company and its Affiliates for a period of
the earlier of (i) five (5) years following receipt thereof and (ii) two (2) years
following termination of this Agreement, except that such Stockholder or
Warrantholder may disclose such Information (a) to Persons employed or engaged
by such Stockholder or Warrantholder who need to know such Information that
have agreed to comply with the covenant contained in this Section 3.4; (b) in
connection with any Transfer or proposed Transfer of Equity Interests to any bona fide and permitted proposed Transferee that has agreed
to comply with the covenant contained in this Section 3.4 (and any such bona fide proposed Transferee may disclose such Information
to Persons employed or engaged by it as described in clause (a) of this Section
3.4); (c) as requested or required by any Governmental Authority or reasonably
believed by such Stockholder or Warrantholder to be compelled by any court
decree, subpoena or legal or administrative order or process; (d) as, on the
advice of such Stockholder’s or Warrantholder’s counsel, is required by law; (e)
in connection with the exercise of any right or remedy under this Agreement or
in connection with any action, claim, lawsuit, demand, investigation or
proceeding to which such Stockholder or Warrantholder is a party before any
Governmental Authority or before any arbitrator or panel of arbitrators; or (f)
that becomes publicly available through no fault of such Stockholder or
Warrantholder or any other Person to whom such Stockholder or Warrantholder
provided such Information.  Each
Stockholder and Warrantholder shall be responsible and liable for any violation
of this Section 3.4 by any Person described in clause (a) or (b) of this Section
3.4.  “Information” means all
information received from or on behalf of the Company or any of its
Subsidiaries relating to the Company or any of its Subsidiaries or any of their
respective businesses, other than any such information that is publicly
available, or was known to such Stockholder or Warrantholder from a source
other than the Company or its Subsidiaries, prior to 

 

11

 

disclosure by or on behalf
of the Company or any of its Subsidiaries other than as a result of a breach of
this Section 3.4.

 

3.5  Environmental Reports.  The Company agrees:

 

(a)
     at regular intervals, but no less
frequently than every twelve months, to provide to the Board a written report
describing the compliance of the Company and its Subsidiaries with its
environmental, health and safety (“EHS”) policies and applicable EHS
laws, and implement such improvements and corrections as may be necessary or
appropriate, after consultation with outside counsel and the Board, to maintain
conformance with such policies and laws; provided that the Company will
provide the Board with an updated report within 60 days of any event or the
discovery of any facts that would result in a material change from the
information contained in a prior report provided to the Board; and

 

(b)
    to comply with all applicable
statutes, laws, ordinances, rules, orders and regulations concerning EHS,
except where the failure to so comply could not reasonably be expected to have
a material adverse effect on the condition (financial or otherwise), results of
operations, business, or properties, collectively, of the Company and its
Subsidiaries.

 

SECTION
4.   TRANSFERS AND ISSUANCES

 

4.1  Limitations on Transfer.

 

(a)           Each Stockholder
hereby agrees that no Transfer of Equity Interests shall occur in any manner
that violates the provisions of this Agreement, the Registration Rights
Agreement or any applicable federal or state securities laws.

 

(b)           Each Stockholder
hereby agrees that, except for Transfers pursuant to Section 4.2, 4.5 or 4.6 or
Transfers effected pursuant to an effective registration statement filed under
the Securities Act, no Transfer of Equity Interests shall occur unless the
Company has been furnished, after it has made a written request to that effect,
with an opinion in form and substance reasonably satisfactory to the Company
from counsel reasonably satisfactory to the Company that such Transfer may be
made without registration under Section 5 under the Securities Act and any
applicable state securities laws; provided, however, that this Section
4.1(b) shall not apply to (x) Transfers of Equity Interests by a Stockholder
(or Stockholders) who (i) beneficially owns less than ten percent (10%) of the
shares of Common Stock then outstanding; (ii) is not an “Affiliate” (as such
term is defined in Rule 405 under the Securities Act) of the Company, and (iii)
has furnished the Company with a certificate, in form and substance reasonably
satisfactory to the Company, signed by an authorized officer of the Stockholder
effecting such Transfer, to the effect that the requirements of clauses (i) and
(ii) of this proviso are satisfied and that the Stockholder making such
Transfer did not receive the securities proposed to be Transferred with a view
to a subsequent distribution, (y) Transfers of Equity Interests by a
Stockholder who has furnished the Company with a certificate, in form and
substance reasonably satisfactory to the Company, signed by an authorized
officer of the Stockholder effecting such Transfer, to the effect that the
Transfer is being made in compliance with Rule 144 under the Securities Act or (z)
Transfers of Equity Interests to the Company 

 

12

 

pursuant
to the repurchase provisions of any management equity plan or agreement or
independent director equity plan or agreement.

 

(c)           Each Stockholder
hereby agrees that, except for Transfers in connection with clause (z) of Section
4.1(b), no Transfer of Equity Interests shall be permitted unless and until the
proposed Transferee agrees in writing to become a party to, and be bound to the
same extent as its Transferor by the terms of, this Agreement pursuant to the
provisions of Section 5.6 hereof.

 

(d)           Notwithstanding any
other provisions of this Agreement to the contrary, prior to a Public Offering,
no Transfer of Equity Interests shall be permitted if, after giving effect to
such Transfer, and after giving effect to the conversion, exercise or exchange
of all Common Stock Equivalents (other than the Warrants), such Transfer would
result in the Company becoming subject to the reporting requirements of the
Exchange Act.

 

(e)           Each Stockholder
hereby agrees that, except for Transfers pursuant to Section 4.6 hereof, no
Transfer of Equity Interests to any Company Competitor or an Affiliate of any
Company Competitor shall be permitted without the prior written consent of the
Board.

 

4.2  Transfers to Affiliates.  Notwithstanding any other provision of this
Agreement to the contrary, but subject to Sections 4.1(c), (d) and (e) hereof,
each Stockholder and its Affiliates shall be permitted to Transfer from time to
time any or all of the Equity Interests beneficially owned by it to any of its
Affiliates.  Notwithstanding anything
else in this Agreement to the contrary, if any Transfer of Equity Interests to
Affiliates permitted hereunder is not permitted under any of the Other
Agreements applicable to such Equity Interests, then such Transfer to
Affiliates shall not be permitted hereunder.

 

4.3  Effect of Void Transfers.  In the event of any purported Transfer of
Equity Interests in violation of the provisions of this Agreement, such
purported Transfer shall be void and of no effect, and the Company shall not
give effect to such Transfer nor shall it cause any third party transfer agent
to effect such Transfer, to the extent it appoints one.

 

4.4  Legend on Securities.

 

(a)           Unless and until the
Board shall determine otherwise, shares of Common Stock shall be uncertificated
and recorded in the books and records of the Company.  If at any time the Board shall determine to
certificate shares of Common Stock issued to any Stockholder or any additional
Equity Interests that become subject to this Agreement pursuant to Section 5.1
(except for (i) unexercised options issued pursuant to any management equity
plan or agreement or independent director equity plan or agreement, which shall
bear the legend set forth in Section 4.4(b) below, and (ii) Warrants, which
shall bear the legend set forth in the Warrant Agreement) shall bear the
following legend on the face thereof; provided, however, that
certificates representing Equity Interests not subject to the Registration
Rights Agreement, shall make no reference to the Registration Rights Agreement:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAW AND ARE SUBJECT TO (A) A STOCKHOLDERS 

 

13

 

AGREEMENT
AMONG RDA HOLDING CO. (THE “COMPANY”) AND THE STOCKHOLDERS PARTIES
THERETO, AND (B) A REGISTRATION RIGHTS AGREEMENT AMONG THE COMPANY AND CERTAIN
HOLDERS OF REGISTRABLE COMMON STOCK (AS THAT TERM IS DEFINED IN THE
REGISTRATION RIGHTS AGREEMENT), COPIES OF WHICH ARE ON FILE WITH THE SECRETARY
OF THE COMPANY.  NO DIRECT OR INDIRECT
TRANSFER, SALE, OFFER, ASSIGNMENT, EXCHANGE, DISTRIBUTION, MORTGAGE, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH
STOCKHOLDERS AGREEMENT AND REGISTRATION RIGHTS AGREEMENT AND (A) PURSUANT TO A
REGISTRATION STATEMENT EFFECTIVE UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR (B) IF THE COMPANY HAS BEEN FURNISHED EITHER WITH AN OPINION IN FORM AND
SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY FROM COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER, SALE, OFFER, ASSIGNMENT,
EXCHANGE, DISTRIBUTION, MORTGAGE, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION MAY
BE MADE WITHOUT REGISTRATION UNDER SECTION 5 OF THE SECURITIES ACT OF 1933, AS
AMENDED, AND THE RULES AND REGULATIONS THEREUNDER AND APPLICABLE STATE
SECURITIES LAWS OR WITH THE CERTIFICATE SPECIFIED IN SECTION 4.1(B) OF SUCH
STOCKHOLDERS AGREEMENT, IF APPLICABLE. 
THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE,
AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH STOCKHOLDERS AGREEMENT AND
REGISTRATION RIGHTS AGREEMENT.”

 

(b)           Each unexercised
option that is certificated and issued pursuant to any management equity plan
or agreement or independent director equity plan or agreement shall bear the
following legend:

 

“THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAW AND ARE SUBJECT TO A STOCKHOLDERS
AGREEMENT AMONG RDA HOLDING CO. (THE “COMPANY”) AND THE OTHER
STOCKHOLDERS PARTIES THERETO AND A STOCK OPTION AGREEMENT, COPIES OF WHICH ARE
ON FILE WITH THE SECRETARY OF THE COMPANY. 
NO DIRECT OR INDIRECT TRANSFER, SALE, OFFER, ASSIGNMENT, EXCHANGE,
DISTRIBUTION, MORTGAGE, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE
WITH THE PROVISIONS OF SUCH STOCKHOLDERS AGREEMENT AND STOCK OPTION
AGREEMENT.  THE HOLDER OF THIS OPTION, BY
ACCEPTANCE HEREOF, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH
STOCKHOLDERS AGREEMENT AND STOCK OPTION AGREEMENT, INCLUDING RESTRICTIONS
RELATING TO THE EXERCISE OF ANY VOTING RIGHTS GRANTED BY THE SECURITIES. “

 

14

 

4.5  Tag-Along Rights.

 

(b)           With respect to any
proposed Transfer or Transfers (other than a mortgage, pledge or hypothecation
or Transfer pursuant to Section 4.2) in one transaction or a series of related
transactions, individually or in the aggregate, of ten percent (10%) or more of
the then outstanding shares of Common Stock by any Stockholder, or two (2) or
more Stockholders acting in concert with respect to such Transfer, provided
that such Stockholder or Stockholders and their respective Affiliates
collectively own prior to such proposed Transfer twenty-five percent (25%) or
more of the then outstanding shares of Common Stock (in such capacity, a “Transferring
Stockholder”), the Transferring Stockholder shall have the obligation, and (i)
each other Stockholder, other than Management Stockholders and Director
Stockholders, and (ii) each Warrantholder (but a Warrantholder shall only have
tag-along rights pursuant to this Section 4.5 with respect to the Common Stock
issuable upon exercise of its Warrants (rather than the Warrants themselves)
and only if the Transfer would result in a Change of Control) shall have the
right but not the obligation, to request the proposed Transferee to purchase
from each Stockholder and Warrantholder exercising such right (each, a “Tagging
Stockholder”) that number of shares of Common Stock requested to be
included by such Tagging Stockholder; provided that if the proposed
Transferee is unwilling to purchase all of the Common Stock that the Tagging
Stockholders have requested to be acquired by the proposed Transferee, then
each Tagging Stockholder shall have the right to sell or otherwise Transfer to
the Transferee a number of such Tagging Stockholder’s shares of Common Stock
equal to the product of (x) the number of shares of Common Stock beneficially
owned by such Tagging Stockholder (excluding shares subject to a Transfer
restriction referred to in the last sentence of this Section 4.5(a)) multiplied
by (y) the percentage of the number of shares of Common Stock that the
Transferring Stockholder is proposing to sell relative to the total number of
shares of Common Stock held by such Transferring Stockholder (excluding shares
subject to a Transfer restriction referred to in the last sentence of this Section
4.5(a)) (the amounts in this clause (y), their “Pro Rata Share”).  If the proposed Transferee is unwilling to
purchase all of the shares of Common Stock proposed to be Transferred by all
Tagging Stockholders (determined in accordance with the first sentence of this Section
4.5(a)), then the Transferring Stockholder and each Tagging Stockholder shall
reduce, on a pro rata basis based on their respective Sharing Percentages of
the shares of Common Stock held by the Transferring Stockholder and the Tagging
Stockholders, the Pro Rata Share of the shares of Common Stock that each
otherwise would have Transferred so as to permit the Transferring Stockholder
and each Tagging Stockholder to sell the number of shares of Common Stock that
the proposed Transferee is willing to purchase. 
Each Tagging Stockholder shall Transfer its shares of Common Stock at
the same price per share and upon the same terms and conditions (including time
of payment, form of consideration or option to elect form of consideration) as
to be paid and given to the Transferring Stockholder.  In order to be entitled to exercise its right
to sell shares of Common Stock to the proposed Transferee pursuant to this Section
4.5, a Tagging Stockholder must agree to make to the proposed Transferee the
same representations, warranties, covenants, indemnities and agreements as the
Transferring Stockholder agrees to make in connection with the proposed
Transfer of the shares of Common Stock of the Transferring Stockholder (except
that in the case of representations and warranties pertaining specifically to
the Transferring Stockholder, a Tagging Stockholder shall make the comparable
representations and warranties pertaining specifically to itself, and except
that no Tagging Stockholder shall have to make representations and warranties
with respect to the Company, and except that, in the case of covenants or
agreements capable of performance only 

 

15

 

by
certain Stockholders, such covenants or agreements shall be made only by such
certain Stockholders).  All
representations, warranties, covenants, agreements and indemnities made by the
Transferring Stockholder and the Tagging Stockholders pertaining specifically to
themselves shall be made by each of them severally and not jointly; provided
that each of the Transferring Stockholder and each Tagging Stockholder shall be
severally (but not jointly) liable for breaches of representations, warranties,
covenants and agreements of or, in the case of representations and warranties
pertaining to the Company and its Subsidiaries and for indemnification
obligations arising out of or relating to any such breach or otherwise
pertaining to the Company and its Subsidiaries, on a pro rata
basis (based on the number of shares of Common Stock Transferred by each
Transferring Stockholder and each Tagging Stockholder), such liability of each
such Stockholder not to exceed the proceeds actually received by such
Stockholder.  Subject to the next
sentence, any Tagging Stockholder that is a holder of Limited Voting Common
Stock or Common Stock Equivalents (including Warrants) and wishes to
participate in a sale of Common Stock pursuant to this Section 4.5(a) shall
convert into or exercise or exchange such number of shares of Limited Voting
Common Stock or Common Stock Equivalents for Voting Common Stock as may be
acquired therefor on or prior to the closing date of such Transfer, provided
that any such conversion, exercise or exchange may be conditioned on the
closing of such Transfer, in which case such conversion, exercise or exchange
shall not be effective until such Transfer has been consummated.  Notwithstanding anything in this Section 4.5
to the contrary, if any Transfer of Common Stock or Common Stock Equivalents
pursuant to this Section 4.5 is not permitted under an Other Agreement or the
Warrant Agreement, then such Transfer shall not be permitted hereunder.

 

(c)           The Transferring
Stockholder shall give written notice to all other Stockholders (and, to the
extent the Transfer would result in a Change of Control, all Warrantholders) of
each proposed Transfer giving rise to the rights of the Tagging Stockholders
set forth in the first sentence of Section 4.5(a) at least thirty (30) days
prior to the consummation of such Transfer, setting forth the name of the
Transferring Stockholder, the number of shares of Common Stock proposed to be
so Transferred, the name and address of the proposed Transferee, the proposed
amount and form of consideration and other terms and conditions offered by the
proposed Transferee, and a representation that the proposed Transferee has been
informed of the tag-along rights provided for in this Section 4.5 and has
agreed to purchase shares of Common Stock from any Tagging Stockholder or
Tagging Stockholders in accordance with the terms hereof.  Any notice required by the Transferring
Stockholder under this Section 4.5 to be given to the other Stockholders and
Warrantholders may, at the election of the Transferring Stockholder, be given
to the Company which shall, on behalf of the Transferring Stockholder, give
such notice to the other Stockholders and Warrantholders.  The tag-along rights provided by this Section
4.5 must be exercised by each Tagging Stockholder within twenty (20) days
following receipt of the notice required by the preceding sentence, by delivery
of a written notice to the Transferring Stockholder indicating such Tagging
Stockholder’s election to exercise its rights pursuant to Section 4.5 and
specifying the number of shares of Common Stock it elects to sell.  If the proposed Transferee fails to purchase
shares of Common Stock from any Tagging Stockholder that has properly exercised
its tag-along rights, then the Transferring Stockholder shall not be permitted
to make the proposed Transfer, and any such attempted Transfer shall be void
and of no effect, as provided in Section 4.3 hereof.

 

16

 

(d)           If any of the
Tagging Stockholders exercise their rights under Section 4.5(a), the closing of
the purchase of the Common Stock with respect to which such rights have been
exercised shall take place concurrently with the closing of the sale of the
Transferring Stockholder’s Common Stock. 
No Transfer shall occur pursuant to this Section 4.5 unless the
Transferee shall agree to become a party to, and be bound to the same extent as
its Transferor by the terms of, this Agreement pursuant to the provisions of Section
5.6.

 

(e)           Any Transfer
pursuant to this Section 4.5 shall occur within ninety (90) days of delivery of
the notice from the Transferring Stockholder to the other Stockholders (and
Warrantholders, if applicable) and at a price of not more than the maximum per
share price set forth in the notice and otherwise on terms and conditions in
the aggregate not more favorable to the Transferring Stockholder and the
Tagging Stockholders than were set forth in the notice.  If, at the end of such ninety (90) day
period, the Transferring Stockholder and the Tagging Stockholders have not
completed the sale or other disposition of the Common Stock of the Transferring
Stockholder and the Tagging Stockholders in accordance with the terms and
conditions of the proposed Transfer, all the restrictions on Transfer contained
in this Agreement with respect to Common Stock owned by the Transferring
Stockholder and the Tagging Stockholders shall again be in effect.

 

4.6  Drag-Along Rights.

 

(a)           If any Stockholder,
or two (2) or more Stockholders acting in concert with respect to the Transfer
of their shares of Common Stock, and such Stockholder’s or Stockholders’
respective Affiliates (the “Selling Stockholder(s)”) that collectively
own at least a majority of the then outstanding shares of Common Stock receives
an offer from a third party (excluding the Company and its Subsidiaries and
Affiliates of such Stockholder or Stockholders) (a “Third Party”) to
purchase all (or no less than 90% if the remaining shares are to be re-invested
in a “roll-over” transaction with the consent of the Third Party) of the
outstanding shares of Common Stock (whether pursuant to a sale of stock, a
merger or otherwise), and such offer is accepted by the Selling Stockholder(s) (the
“Drag-Along Transaction”), then each Stockholder and Warrantholder
hereby agrees that, if requested to do so by such Selling Stockholder(s) pursuant
to a Drag-Along Notice, it will Transfer all of its shares of Common Stock (or,
in the case of Warrantholders, all shares of Common Stock issuable upon
exercise of its Warrants) to such Third Party at the same price per share and
upon the same terms and conditions (including time of payment, form of
consideration or option to elect form of consideration) so accepted by the
Selling Stockholder(s), including making the same representations, warranties,
covenants, indemnities and agreements that the Selling Stockholder(s) agrees to
make (except that, in the case of representations and warranties pertaining
specifically to the Selling Stockholder(s), each other Stockholder and
Warrantholder shall make the comparable representations and warranties
pertaining specifically to itself, and except that no Stockholder or
Warrantholder shall have to make representations and warranties with respect to
the Company, and except that, in the case of covenants or agreements capable of
performance only by certain Stockholders or Warrantholders, such covenants or
agreements shall be made only by such certain Stockholders or Warrantholders,
as the case may be).  All
representations, warranties, covenants, agreements and indemnities made by the
Stockholders and Warrantholders pertaining specifically to themselves shall be
made by each of them severally and not jointly; provided that each
Stockholder and Warrantholder shall be severally 

 

17

 

(but
not jointly) liable for breaches of representations, warranties, covenants and
agreements of or, in the case of representations and warranties pertaining to
the Company and its Subsidiaries and for indemnification obligations arising
out of or relating to any such breach or otherwise pertaining to the Company
and its Subsidiaries, on a pro rata basis
(based on the number of shares of Common Stock sold by each Selling Stockholder
and each of the other Stockholders and Warrantholders), such liability of each
such Stockholder or Warrantholder not to exceed such Stockholder’s or
Warrantholder’s pro rata portion of the proceeds
of the sale actually paid to all Stockholders and Warrantholders; provided
further that no such Stockholder or Warrantholder shall be required to enter
into a non-competition covenant.  If the
Selling Stockholder(s) accepts such Drag-Along Transaction and desires that the
other Stockholders and Warrantholders Transfer their shares of Common Stock (or
shares of Common Stock issuable upon exercise of the Warrants) in the
Drag-Along Transaction, such Selling Stockholder(s) shall give written notice
to all other Stockholders and Warrantholders of the proposed Drag-Along
Transaction (“Drag-Along Notice”) at least thirty (30) days prior to the
proposed consummation of such Drag-Along Transaction, which Drag-Along Notice
shall specify the name and address of the Third Party, the form and amount of
consideration to be paid to the Stockholders and Warrantholders and any other
material terms and conditions of the Drag-Along Transaction. The Drag-Along
Notice may, at the election of the Selling Stockholder(s), be given to the
Company which shall, on behalf of the Selling Stockholder(s), give such notice
to the other Stockholders and Warrantholders.

 

(b)           Subject to the next
sentence, if requested to do so by the Selling Stockholder(s), any Stockholder
that is a holder of Limited Voting Common Stock or Common Stock Equivalents and
any Warrantholder shall convert, exercise or exchange such Limited Voting
Common Stock or Common Stock Equivalents (including Warrants) into or for
Voting Common Stock in accordance with their terms on or prior to the closing
date of such Drag-Along Transaction, provided that any such conversion,
exercise or exchange may be conditioned on the closing of such Drag-Along
Transaction, in which case such conversion, exercise or exchange shall not be
effective until such Drag-Along Transaction has been consummated.  Notwithstanding anything in this Section 4.6
to the contrary, (i) in the event a Stockholder that holds Common Stock
Equivalents (other than options to acquire shares of Voting Common Stock
granted under any management equity plan or agreement or independent director
equity plan or agreement, which are governed by clause (ii) below) or a
Warrantholder is required to Transfer such Common Stock Equivalents in a
Drag-Along Transaction, such Stockholder or Warrantholder shall not be required
to convert, exercise or exchange any such Common Stock Equivalent if and to the
extent that the applicable conversion, exercise or exchange price of such
Common Stock Equivalent is equal to or greater than the value of the
consideration to be received by Stockholders and Warrantholders in the
Drag-Along Transaction giving rise to drag-along rights under this Section 4.6
and, in lieu of such conversion, exercise or exchange, at the election of such
holder of Common Stock Equivalents or Warrantholder, any such Common Stock
Equivalents shall instead be cancelled and forfeited; (ii) in connection with
any Drag-Along Transaction, the treatment of options to acquire shares of
Voting Common Stock granted under any management equity plan or agreement or
independent director equity plan or agreement shall be governed by the terms of
such plans or agreements and (iii) if any Transfer of Common Stock or Common
Stock Equivalents of the Company pursuant to this Section 4.6 is not permitted
under an Other Agreement or the Warrant Agreement, then such Transfer shall not
be permitted or required hereunder.

 

18

 

 

(c)           Any Drag-Along
Transaction pursuant to this Section 4.6 shall occur within one hundred
eighty (180) days of delivery of the Drag-Along Notice to the other
Stockholders and the Warrantholders.  If,
at the end of such one hundred eighty (180) day period, the Selling
Stockholder(s), the other Stockholders and the Warrantholders have not
completed the sale or other disposition of the Common Stock (and Common Stock
issuable upon exercise of the Warrants) of the Selling Stockholder(s), the
other Stockholders and the Warrantholders in accordance with the terms and
conditions of the proposed Drag-Along Transaction, all the restrictions on
Transfer contained in this Agreement with respect to Common Stock owned by the
Selling Stockholder(s) and the other Stockholders shall again be in
effect.

 

4.7  Participation
Rights.

 

(a)           The Company shall
not issue additional Equity Interests (an “Issuance”) to any Person
unless, prior to such issuance, the Company notifies each Eligible Stockholder
in writing of the proposed Issuance and grants to each Eligible Stockholder
(subject to compliance with Section 4.7(c) below), the right (the “Right”)
to subscribe for and purchase, in whole or in part, at the same price and upon
the same terms and conditions (including, if such additional Equity Interests
are issued as a unit together with other securities, the purchase of such unit,
but the Right shall not apply separately to any component of such unit) as set
forth in the notice of such Issuance, a portion of such additional Equity
Interests proposed to be issued in the Issuance up to:

 

(i)            in the case of an Issuance in which
shares of Common Stock or Common Stock Equivalents are to be issued, such that
immediately after giving effect to the Issuance and exercise of the Right (including,
for purposes of this calculation, the issuance of shares of Common Stock upon
conversion, exchange or exercise of any Common Stock Equivalent issued in the
Issuance or subject to the Right), the shares of Common Stock and Common Stock
Equivalents beneficially owned by such Stockholder and its Affiliates (rounded
to the nearest whole share) shall represent the same percentage of the
aggregate number of shares of Common Stock and Common Stock Equivalents
outstanding as was beneficially owned by such Stockholder and its Affiliates
immediately prior to the Issuance; and

 

(ii)           in the case of an Issuance in which (A) equity
securities of the Company other than Common Stock or Common Stock Equivalents (“Other
Capital Stock”) or (B) any securities exchangeable or exercisable for,
or convertible into, such Other Capital Stock (“Other Capital Stock
Equivalents”) are to be issued, equal to the percentage of shares of Common
Stock and Common Stock Equivalents that was beneficially owned by such
Stockholder and its Affiliates immediately prior to the Issuance.

 

(b)           If any Eligible
Stockholder elects not to exercise its Right pursuant to Section 4.7 in
full with respect to the Issuance of additional Equity Interests, then the
other Eligible Stockholders may elect to subscribe for and purchase their pro rata share of such Equity Interests that such Eligible
Stockholder elected not to participate in and such other Eligible Stockholders
shall receive the relevant number of newly issued Equity Interests that the
non-

 

19

 

electing
Eligible Stockholder would have received had such non-electing Eligible
Stockholder elected to participate in full.

 

(c)           The Right may be
exercised by each Eligible Stockholder provided that the Eligible Stockholder
exercising the Right must (i) be an Accredited Investor and (ii) deliver
written notice to the Company of such exercise of the Right which is received
by the Company within twenty (20) Business Days after the date on which the
Eligible Stockholder receives notice from the Company of the proposed Issuance
(which date shall be specified in the notice from the Company of the proposed
Issuance).  The closing of the purchase
and sale pursuant to the exercise of the Right shall occur on the date
scheduled by the Company for the Issuance, which may not be earlier than ten (10) Business
Days and no later than sixty (60) Business Days after the Company receives
notice of the exercise of the Right. 
Notwithstanding the foregoing, the Right shall not apply to any Issuance
(i) made as consideration for the payment of the purchase price of assets
acquired by the Company or any of its Subsidiaries, including any Issuance in
connection with a merger, exchange offer, joint venture, license transaction or
exchange of shares, or to any lender in connection with any loans made to the
Company or any of its Subsidiaries, (ii) (A) of options granted to
directors, officers or employees of the Company or its Subsidiaries, or
Issuance of Common Stock upon exercise of such options, (B) otherwise in
accordance with the terms of a stock option plan or other equity-based
compensation plan of the Company or its Subsidiaries that has been approved by
the Board and, in the case of each of the foregoing clauses (ii)(A) and
(ii)(B), of the Equity Interests issued upon the exchange, exercise or
conversion of such Equity Interests or (C) of Equity Interests upon
exercise of the Warrants, (iii) of Equity Interests issued as dividends or
distributions to holders of Common Stock, generally, on a pro rata
basis, or in connection with a stock split, (iv) of Other Capital Stock or
Other Capital Stock Equivalents issued as dividends or distributions to holders
of Other Capital Stock or Other Capital Stock Equivalents, generally, on a pro rata basis, or (v) pursuant to the exchange,
exercise or conversion of any Equity Interest that is either (A) outstanding
on the date hereof or (B) outstanding after the date hereof so long as the
Eligible Stockholders have had an opportunity to exercise the Right granted to
such Eligible Stockholders in this Section 4.7 with respect to the
underlying Equity Interest, or such Equity Interest was issued pursuant to
clause (i), (ii), (iii) or (iv) of this sentence.

 

(d)           Nothing in this Section 4.7
shall be deemed to prevent any Person from purchasing for cash or the Company
from issuing any additional Equity Interests without first complying with the
provisions of this Section 4.7 if, in connection with such purchase, (i) the
Board has determined in good faith that (A) the Company needs a prompt
cash investment, (B) no alternative financing on terms as favorable to the
Company in the aggregate than such purchase is available on an as timely basis,
and (C) the delay caused by compliance with the provisions of this Section 4.7
in connection with such investment would be reasonably likely to adversely
affect the Company, (ii) the Person making such purchase (for purposes of
this Section 4.7, the “Purchasing Holder”) or the Company gives
prompt notice to the Eligible Stockholders as of such date of the Purchasing
Holder’s investment, which notice shall describe in reasonable detail the
additional Equity Interests being purchased by the Purchasing Holder and the
purchase price thereof, and (iii) the Purchasing Holder or the Company
enables the Eligible Stockholders to effectively exercise their respective
rights under this Section 4.7 with respect to their purchase of a pro rata share of the additional Equity Interests issued to
the Purchasing Holder as promptly 

 

20

 

as
practicable following the initial prompt cash investment after such purchase by
the Purchasing Holder on the terms specified in Section 4.7(a).

 

SECTION 5.   MISCELLANEOUS

 

5.1  Additional
Securities Subject to Agreement. 
Each Stockholder and Warrantholder agrees that any other Equity
Interests which it shall hereafter acquire by means of a stock split, stock
dividend, distribution, exercise of warrants (including the Warrants) or options,
purchase or otherwise shall be subject to the provisions of this Agreement to
the same extent as if held on the date hereof.

 

5.2  Termination.  Except as provided in Section 3.4, this
Agreement shall terminate upon the first to occur of (a) Change of Control
(including in connection with a Drag-Along Transaction), (b) the sale of
all or substantially all of the assets of the Company (other than to a
Subsidiary or an Affiliate of the Company), (c) the liquidation of the
Company or (d) a Public Offering.

 

5.3  Injunctive
Relief.  The Stockholders, the
Warrantholders and the Company acknowledge and agree that a violation of any of
the terms of this Agreement will cause the other parties irreparable injury for
which adequate remedy at law is not available. 
Accordingly, it is agreed that each of the Company, the Stockholders and
the Warrantholders shall be entitled to seek an injunction, restraining order
or other equitable relief to prevent breaches of the provisions of this
Agreement and to enforce specifically the terms and provisions hereof in any
federal or state court of competent jurisdiction in the Southern District of
New York, in addition to any other remedy to which it may be entitled at law or
equity, without the posting of any bond.

 

5.4  Other
Stockholders Agreements.  None of the
Stockholders or the Warrantholders shall enter into any agreement or other
arrangement of any kind with any Person with respect to Equity Interests which
is inconsistent with the provisions of this Agreement or which would reasonably
be considered to impair its ability to comply with this Agreement.

 

5.5  Amendments.  This Agreement may be amended only by a
written instrument signed by (a) the Company and (b) Stockholders
beneficially owning a majority of the then outstanding shares of Common Stock
beneficially owned by all Stockholders; provided, however, that
no such amendment shall materially adversely change the rights or obligations
of any Stockholder or Warrantholder disproportionately generally vis a vis other Stockholders or Warrantholders party to this
Agreement without the written approval of such disproportionately affected
Stockholder or Warrantholder; provided  further that (i) Limited
Voting Stockholders beneficially owning a majority of the then outstanding
shares of Limited Voting Common Stock beneficially owned by all Limited Voting
Stockholders shall be required to approve any amendment affecting the specific
rights or obligations of the Limited Voting Stockholders that does not
similarly affect the rights or obligations of the holders of Voting Common
Stock and (ii) no such amendment shall, without the prior written approval
of each Limited Voting Stockholder, terminate, modify or waive a Limited Voting
Stockholder’s rights or obligations in respect of the conversion of Limited
Voting Common Stock into Voting Common Stock; and provided  further
that no such amendment shall, without the prior written approval of
Stockholders beneficially owning at least 66 2/3% of the then outstanding
shares of Common 

 

21

 

Stock beneficially owned by
all Stockholders, terminate, modify or waive a Stockholder’s rights or
obligations in respect of (i) participation in Issuances pursuant to Section 4.7,
(ii) dispositions pursuant to Section 4.5 or (iii) dispositions
pursuant to Section 4.6. 
Notwithstanding the foregoing, the Company may from time to time add
additional holders of shares of Common Stock as parties to this Agreement. In
order to become a party to this Agreement, such Person must execute a joinder
agreement, in form and substance satisfactory to the Company, evidencing such
Person’s agreement to become a party hereto and to be bound hereby as a
Stockholder, and upon the Company’s receipt of any such Person’s executed
joinder agreement, such Person shall be deemed to be a party hereto and bound
hereby.

 

5.6  Successors,
Assigns and Transferees.  The
provisions of this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their Permitted Transferees and their
respective successors, each of which Permitted Transferees and successors must
execute a joinder agreement, in form and substance reasonably satisfactory to
the Company, evidencing such Person’s agreement to become a party hereto and be
bound hereby as a Stockholder to the same extent as its Transferor or
predecessor, provided that no Stockholder may assign to any Permitted
Transferee any of its rights or obligations hereunder other than in connection
with a Transfer to such Permitted Transferee of Equity Interests in accordance
with the provisions of this Agreement. 
The provisions of this Agreement shall also be binding upon and inure to
the benefit of Transferees of Warrants, provided that the applicable
Transfer shall be made in accordance with the Warrant Agreement, including the
provision therein relating to such Transferee executing a joinder agreement, in
form and substance reasonably satisfactory to the Company, evidencing such
Transferee’s agreement to become a party hereto and be bound hereby as a
Warrantholder to the same extent as its Transferor or predecessor. Any
purported assignment in violation of this provision shall be null and void ab initio.

 

5.7  Notices.  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 by hand, or two Business Days after
being delivered to a recognized courier (whose stated terms of delivery are two
Business Days or less to the destination of such notice), or five calendar days
after being deposited in the mail, postage prepaid, or, in the case of telecopy
notice, when received, addressed as set forth on Schedule B hereto to the
parties hereto, or to such other address as may be hereafter notified by the
respective parties hereto; provided, that for purposes of delivering
documents pursuant to Sections 3.1 and 3.2, the Company may post such documents
on a secure website (which shall initially be Intralinks and thereafter may be
a secure website maintained by a comparable provider) and make such documents
available to the Stockholders entitled to receive such documents by providing
such Stockholders with the information necessary to access such website (which
information shall be provided by the Company each time documents are so
delivered); provided, further, that delivery by posting documents
on a secure website shall not apply to any Stockholder if such Stockholder has
notified the Company that it elects not to receive information by such method.

 

5.8  Integration.  This Agreement, the Registration Rights
Agreement and, in the case of a Management Stockholder or a Director
Stockholder, all option, subscription, restricted stock, employment and other
agreements entered into by such Management Stockholder or Director Stockholder
and any of the Company and its Subsidiaries (the “Other Agreements”), 

 

22

 

and in the case of the Warrantholders,
the Warrant Agreement, contain the entire understanding of the parties with
respect to the subject matter hereof and thereof.  There are no agreements, representations,
warranties, covenants or undertakings with respect to the subject matter hereof
and thereof other than those expressly set forth herein and therein.  This Agreement and the Other Agreements
supersede all prior agreements and understandings between the parties with
respect to such subject matter hereof and thereof.

 

5.9  Severability.  If one or more of the provisions, paragraphs,
words, clauses, phrases or sentences contained herein, or the application
thereof in any circumstances, is held invalid, illegal or unenforceable in any
respect for any reason, the validity, legality and enforceability of any such
provision, paragraph, word, clause, phrase or sentence in every other respect
and of the remaining provisions, paragraphs, words, clauses, phrases or
sentences hereof shall not be in any way impaired, it being intended that all
rights, powers and privileges of the parties hereto shall be enforceable to the
fullest extent permitted by law.

 

5.10  Counterparts.  This Agreement may be executed in two or more
counterparts, and by different parties on separate counterparts each of which
shall be deemed an original, but all of which shall constitute one and the same
instrument.

 

5.11  Governing
Law, Etc.  This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of New York applicable to
contracts made and to be performed therein, except for matters directly within
the purview of the General Corporation Law of the State of Delaware (the “DGCL”),
which shall be governed by the DGCL.  The
parties executing this Agreement hereby (i) agree to submit to the
exclusive jurisdiction of the federal and state courts located in the Southern
District of New York in any action or proceeding arising out of or relating to
this Agreement, (ii) waive any objection to the laying of venue of any
actions or proceedings brought in any such court and any claim that such
actions or proceedings have been brought in an inconvenient forum, and (iii) agree
that service of any process, summons, notice or document by U.S. registered
mail to the address for such party specified in Section 5.7 shall be
effective service of process for any action or proceeding in New York with
respect to any matter specified above.

 

5.12  Management
Stockholders.  Each Management
Stockholder on the date hereof has executed this Agreement and is bound
hereby.  After the date hereof, the
Company shall not issue, and shall cause its Subsidiaries not to issue, any
Equity Interests to an employee of the Company or any of its Subsidiaries,
including any Affiliate of such employee, unless he or she first delivers to
the Company a joinder agreement, in form and substance satisfactory to the
Company, agreeing that he or she is bound by the terms hereof as a Management
Stockholder.

 

5.13  Director
Stockholders.  Each Director
Stockholder on the date hereof has executed this Agreement and is bound
hereby.  After the date hereof, the
Company shall not issue, and shall cause its Subsidiaries not to issue, any
Equity Interests to a Director until such Director first delivers to the
Company a joinder agreement, in form and substance satisfactory to the Company,
acknowledging that such Director is bound by the terms hereof as a Director
Stockholder.

 

23

 

5.14  Lender
Relationship.  Notwithstanding
anything herein to the contrary, nothing contained in this Agreement shall
affect, limit or impair the rights and remedies of any lender or any of its
Affiliates in their capacity as lenders to the Company or any of its Affiliates
pursuant to any agreement under which the Company or such Affiliate has
borrowed money.  Without limiting the
generality of the foregoing, no such Person, in exercising its rights as a
lender, including making its decision on whether to foreclose on any collateral
security, will have any duty to consider (a) its status as a direct or
indirect stockholder of the Company and its Subsidiaries, (b) the
interests of the Company or any of its Affiliates or (c) any duty it may
have to any other direct or indirect stockholder of the Company and its Subsidiaries,
except as may be required under the applicable loan documents.

 

[Remainder of this page intentionally left blank.]

 

24

 

IN
WITNESS WHEREOF, each of the undersigned has executed this Agreement or caused
this Agreement to be executed on its behalf as of the date first written above.

 

	
   

  	
  RDA HOLDING CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/
  Thomas A. Williams

  
	
   

  	
   

  	
  Name:  Thomas A. Williams

  
	
   

  	
   

  	
  Title:  Chief Financial Officer

  

 

 

	
   

  	
  CREDITOR STOCKHOLDERS
  IDENTIFIED ON SCHEDULE A AND WARRANTHOLDERS ARE DEEMED TO BE PARTIES
  TO THIS AGREEMENT PURSUANT TO THE PLAN

  

 

 

	
   

  	
  MANAGEMENT STOCKHOLDERS

  
	
   

  	
  (Each of the undersigned
  signing individually, and not on behalf of any other Management Stockholder)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  

 

 

	
   

  	
  DIRECTOR STOCKHOLDERS

  
	
   

  	
  (Each of the undersigned
  signing individually, and not on behalf of any other Director Stockholder)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

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